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4 September 2014
James Robert Morton Sentenced to over Seven Years in Prison for Distribution of Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On Sept. 3, 2014, James Robert Morton, 46, of Rockford, Tenn., was sentenced to serve 88 months in prison by the Honorable Leon Jordan, U.S. District Judge. Morton pleaded guilty in August 2013 to federal charges of knowingly distributing child pornography.
Upon his release from prison, Morton will serve a life term of supervised release during which his activities will be supervised by the U.S. Probation Office. Morton was further ordered to pay $4,000 in restitution to victims whose digital images were distributed by him. Also, as a result of the conviction, the federal Sex Offender Registration and Notification Act will require Morton to register upon his release from prison with the state sex offender registry anywhere he resides, is employed, or is a student.
The conviction and sentencing of Morton was the result of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew T. Morris represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Indictment: Keebler Employees Filed False Reports to Receive Unemployment BenefitsRead the Press Release
KANSAS CITY, KAN. – Federal indictments were returned Wednesday charging that 16 people who worked for Keebler Company in Kansas City, Kan., fraudulently received unemployment benefits, U.S. Attorney Barry Grissom.
The indictments allege that while working for Keebler each of the defendants received unemployment benefits by submitting false reports to the Kansas Department of Labor.
Defendants, who are charged in separate indictments with one count each of theft of government funds and one count of bank fraud, include the following:
Angie Raffurty, 43, Blue Springs, Mo., who is alleged to have fraudulently received $10,488 in benefits.
Bobby Grant, 49, Kansas City, Kan., who is alleged to have fraudulently received $31,466.
Darrell Haywood, 32, Kansas City, Kan., who is alleged to have fraudulently received $10,564.
Debbie Gleghorn, 55, Kansas City, Kan., who is alleged to have fraudulently received $10,633, Durail Bailey, 36, Kansas City, Kan., who is alleged to have fraudulently received $12,693.
Herman Callands, Jr., 46, Kansas City, Kan., who is alleged to have fraudulently received $13,766.
James Mango, 50, Kansas City, Mo., who is alleged to have fraudulently received $17,893
Julian Emery, 38, Blue Springs, Mo., who is alleged to have fraudulently received $15,788.
Maxine Nelson, 44, Kansas City., Mo., who is alleged to have fraudulently received $12,795.
Randy Laughlin, 55, Blue Springs, Mo., who is alleged to have fraudulently received $27,388.
Rodney Taylor, 44, Kansas City, Mo., who is alleged to have fraudulently received $15,598.
Rodrigo Diacono, 35, Lenexa, Kan., who is alleged to have fraudulently received $10,168.
Tina Cooper, 48, Kansas City, Mo., who is alleged to have fraudulently received $18,796.
Donald Barnett, 42, Independence, Mo., who is alleged to have fraudulently received $11,490.
Edith Clark, 53, Kansas City, Mo., who is alleged to have fraudulently received $12,820.
Kaven Daniels, 43, Kansas City, Mo., who is alleged to have fraudulently received $12,633.If convicted, they face a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the theft of government funds, and a maximum penalty of 30 years and a fine up to $1 million on the bank fraud charge. The Kansas Department of Labor, the U.S. Department of Labor Employee and Benefits Security Administration, the U.S. Department of Labor – Office of Inspector General and the FBI investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
OTHER INDICTMENTS
K. Kevin James, 57, Lenexa, Kan., and his son, Charlie M. James, 35, Desoto, Kan., are charged with wire fraud and other counts.
K. Kevin James is charged with 10 counts of bank fraud, eight counts of wire fraud and one count of conspiracy to defraud the United States.
Charlie M. James is charged with four counts of wire fraud, one count of conspiracy to defraud the United States, three counts of tax evasion and one count of bankruptcy fraud.The indictment alleges the crimes were committed while the defendants were owners of KC United, LLC, a holding company for five construction companies that was located in Kansas City, Kan. One of the companies owned by KC United was Miller Paving and Construction.
The indictment alleges that K. Kevin James and others obtained business loans from Bank of Blue Valley by hiding and falsely representing the failing financial condition of KC United. The fraud resulted in a loss to the bank of more than $877,382. The bank received federal funds from the U.S. Treasury’s Troubled Asset Relief Program (TARP). The indictment also alleges the defendants diverted prevailing wage fringe benefit payments for employees for other purposes.
“The Bank of Blue Valley suffered losses on the loans and was unable to repay TARP or their quarterly TARP dividend, and eventually sold the loans at a loss of $877,000,” said Christy Romero, Special Inspector General for Tarp (SIGTARP).”
Upon conviction, the crimes carry the following penalties: Bank fraud: A maximum penalty of 30 years in federal prison on each count and a fine up to $1 million.
Wire fraud: A maximum penalty of 20 years on each count and a fine up to $250,000.
Conspiracy to defraud the United States: A maximum penalty of five years and a fine up to $250,000.
Tax evasion: A maximum penalty of five years and a fine up to $250,000.
Bankruptcy fraud: A maximum penalty of five years and a fine up to $250,000.The Internal Revenue Service and Special Investigator for the Troubled Asset Relief Program investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
Charles R. Waits, 53, Lenexa, Kan., is charged with one count of bank fraud. The crime is alleged to have occurred in 2010 in Johnson County, Kan.
The indictment alleges that while Waits was the managing member of a corporation that operated the Kansas City Sports Grill he provided false financial information to the Community America Credit Union in order to obtain $605,000 in business loans.
The U.S. Secret Service investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
Damon Harlin, Jr., 35, Kansas City, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Aug. 20, 2014, in Kansas City, Kan.
If convicted, he faces a penalty of not less than 15 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
Timothy R. Whittington, Jr., 34, Leavenworth, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Aug. 16, 2014, in Kansas City, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
Christopher S. Virgil, 42, formerly of Leavenworth, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred April 27, 2012, in Leavenworth, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Highland Heights Man Pleads Guilty to Sending White Powder to IRSRead the Press Release
A Highland Heights man pleaded guilty today after sending a letter containing white powder to the Internal Revenue Service, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
John T. Buchak, 27, pleaded guilty to one count of threatening use of a weapon of mass destruction. He is scheduled to be sentenced on Dec. 4.
Buchak sent a letter via the U.S. Mail to the Internal Revenue Service on March 31, 2014, that contained white powder, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Chelsea Rice following an investigation by the Federal Bureau of Investigation.
Greensburg Man with 1992 Child Porn Conviction Charged with Possessing Sexual Images and Videos of MinorsRead the Press Release
PITTSBURGH - A Westmoreland County resident has been indicted by a federal grand jury in Pittsburgh on charges of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Aug. 26 and unsealed today, named John Mallory, 60, of Greensburg, Pa., as the sole defendant.
According to the indictment, Mallory was found to be in possession of visual depictions, namely, images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Because Mallory was convicted in 1992 for receiving child pornography, he faces a mandatory minimum of 10 years imprisonment for the current charges.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Department of Homeland Security conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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.justice.gov/psc.
Georgia Man Pleads Guilty to Stealing Deceased Persons' Identities to Gain $2.3 Million in State Tax RefundsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Georgia man pleaded guilty in federal court today to a wire fraud scheme in which he used the identity information of deceased persons to obtain more than $2.3 million in tax refunds from several states.
Sirhon Rivers, also known as “Ron,” 40, of Georgia, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to one count of wire fraud, one count of aggravated identity theft, one count of conspiracy to commit money laundering and one count of conspiracy to commit wire fraud and aggravated identity theft.
By pleading guilty today, Rivers admitted that he unlawfully obtained $547,000 from the Missouri Department of Revenue from January 2008 to August 2012 by filing fraudulent tax returns. Rivers used the same scheme in others states – including Kansas, Alabama, Arizona, Connecticut, Delaware, Georgia, Idaho, Louisiana, Michigan, Minnesota, New York, North Carolina, North Dakota, Oklahoma, Rhode Island and Virginia – to unlawfully acquire a total of $2,365,617 in fraudulent state tax refunds.
Rivers obtained personal identification information – including names, Social Security numbers, and dates of birth – from deceased persons. He submitted state tax returns using that information, adding false and fraudulent information such as employment and wages earned. State tax returns were submitted electronically, with the refunds electronically transferred to bank accounts that Rivers opened at several financial institutions.
Rivers must forfeit to the government $2,365,000, which constitutes the amount of money fraudulently received from the various states into his bank accounts.
Under federal statutes, Rivers is subject to a sentence of up to 60 years in federal prison without parole, plus a fine up to $1 million and an order of restitution. Rivers is also subject to a mandatory consecutive sentence of two years in federal prison without parole for aggravated identity theft. 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 Anthony P. Gonzalez. It was investigated by the FBI, the Missouri Department of Revenue Criminal Tax Investigations Bureau and the Missouri Department of Revenue Compliance and Investigation Bureau.
Founder of USA Harvest Sentenced to 24 Months in Prison for Embezzling from the Charity and Tax FraudRead the Press Release
– Hugh “Stan” Curtis ordered to pay $183,354 in restitution
LOUISVILLE, Ky. – USA Harvest founder, Hugh “Stan” Curtis was sentenced today by Chief Judge Joseph H. McKinley Jr., to serve 24 months in prison, followed by a three year period of supervised release and ordered to pay $183,354 in restitution, announced David J. Hale, United States Attorney for the Western District of Kentucky. Restitution to the IRS will be handled independently by the civil division of the IRS, and the amount owed in taxes will be calculated independently by the IRS. Curtis pleaded guilty in U.S. District Court in Louisville to a to a seven count federal indictment charging him with mail fraud, money laundering and filing false income tax returns with the Internal Revenue Service (IRS) on July 3, 2014.
“As founder and sole officer of USA Harvest, Stan Curtis occupied a position of significant responsibility and trust. He abused that trust by diverting charitable donations intended for the poor and hungry,” stated U.S. Attorney Hale. “Curtis will spend 24 months in prison and has been ordered to pay back the $187,354 that he stole from the foundation and used for his own personal benefit.”
Curtis, 65, of Louisville, Kentucky, admitted that from September 2005 through September 2007, he stole $183,354 in donations that he solicited on behalf of USA Harvest, non-profit, I.R.C. 501(c)(3) organization he founded. Of these donated funds, Curtis acknowledged that he deposited $164,620 into his personal account and cashed donation checks totaling $18,734 – and thereafter used the funds for his personal benefit. The $164,620 includes checks written to USA Harvest on August 29, 2007 for $20,000 from Play Like the Pros, LLC and a September 5, 2007 donation from Richemont North America, Inc., for $25,000 which Curtis deposited into his own personal bank account and used for his own personal gain. Curtis did not report the $183,354 as income with the Internal Revenue Service.
Curtis also admitted that from 2005 through 2008, he failed to report to the Internal Revenue Service approximately $553,891.67 in personal income derived from donations made to USA Harvest. From 2005 through 2008 Curtis falsely included approximately $353,165 in unreimbursed travel expense deductions on his federal income tax returns. Of the $553,891.67 in unreported income, Curtis used approximately $370,537.67 in USA Harvest funds to pay for personal meals, personal travel and personal entertainment expenses. In total, defendant Curtis failed to pay $270,000 in federal income tax from calendar years 2005 through 2008.
Curtis admitted to filing false tax returns with the IRS. In 2005, Curtis failed to report approximately $160,549.56 in income and falsely deducted approximately $134,623 in unreimbursed travel expenses from USA Harvest on his 2005 federal income tax return filed on April 15, 2006. For the year 2006 Curtis failed to report approximately $217,085.18 income and falsely deducted approximately $130,739 in unreimbursed travel expenses from USA Harvest on his 2006 federal income tax return filed on May 9, 2007. For the year 2007 Curtis failed to report approximately $97,264.48 and falsely deducted approximately $87,803 in unreimbursed travel expenses from USA Harvest on his federal income tax return filed on April 15, 2008. For the year 2008 Curtis failed to report approximately $78,992.45 in income from USA Harvest on his 2008 federal income tax return filed on October 16, 2009. The return was filed by Curtis and signed under the penalty of perjury.
This case was prosecuted by Assistant United States Attorney Bryan Calhoun and was investigated by the Internal Revenue Service, Criminal Investigations Division.
Former Virginia Governor and Former First Lady<br /> Convicted on Public Corruption ChargesRead the Press Release
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge Adam S. Lee of the FBI’s Richmond Field Office, Chief Richard Weber of Internal Revenue Service – Criminal Investigation (IRS-CI) and Colonel W. Steven Flaherty, Virginia State Police Superintendent, made the announcement.
A federal jury returned guilty verdicts today against former Virginia Governor Robert F. McDonnell and former First Lady of Virginia Maureen G. McDonnell for participating in a scheme to violate federal public corruption laws.
Robert McDonnell and Maureen McDonnell, both 60 and of Glen Allen, Virginia, were convicted of one count of conspiracy to commit honest-services wire fraud and one count of conspiracy to obtain property under color of official right. Robert McDonnell was convicted of three counts of honest-services wire fraud and six counts of obtaining property under color of official right, while Maureen McDonnell was convicted on two of the three honest services wire fraud counts and four of the six counts of obtaining property under color of official right. Maureen McDonnell also was convicted of one count of obstruction of an official proceeding. In total, Robert McDonnell was convicted of 11 of 13 counts and Maureen McDonnell was convicted of 9 of 13 counts.
“As Virginia’s governor, Robert McDonnell and his wife turned public service into a money-making enterprise, abusing the Commonwealth’s highest office to benefit a Virginia businessman in exchange for more than $170,000 in gifts and loans,” said Assistant Attorney General Caldwell. “In pursuit of a lifestyle that they could ill afford, McDonnell and his wife eagerly accepted luxury items, designer clothes, free vacations and the businessman’s offer to pay the costs of their daughter’s wedding. In return, McDonnell put the weight of the governor’s mansion behind the businessman’s corporate interests. The former governor was elected to serve the people of Virginia, but his corrupt actions instead betrayed them. Today’s convictions should send a message that corruption in any form, at any level of government, will not be tolerated.”
“This is a difficult and disappointing day for the Commonwealth of Virginia and its citizens,” said U.S. Attorney Boente. “When public officials turn to financial gain in exchange for official acts, we have no choice but to prosecute them. I thank the Assistant U.S. Attorneys, FBI, Virginia State Police, and the Internal Revenue Service – Criminal Investigation for their exceptional efforts in the investigation and prosecution of this case.”
“Public corruption, particularly among our elected officials, is the FBI’s highest criminal investigative priority,” said FBI Special Agent in Charge Lee. “We will engage and engage vigorously when we receive credible allegations of any federal, state, or local public official illegally using the power of their position to receive a personal benefit. The people of the Commonwealth deserve better than pay-to-play politics.”
“When public officials commit crimes as part of their official duties, they are violating the public trust,” said IRS-CI Chief Weber. “IRS-CI agents play a critical role in rooting out public corruption of elected officials. The public expects more of their leaders in government and our agents work tirelessly on their behalf to ensure that we are all playing by the same rules.”
According to the evidence presented at trial, from April 2011 through March 2013, the McDonnells participated in a scheme to use the former governor’s official position to enrich themselves and their family members by soliciting and obtaining payments, loans, gifts and other things of value from Star Scientific, a Virginia-based corporation, and Jonnie R. Williams Sr., then Star Scientific’s chief executive officer. The McDonnells obtained the things of value in exchange for the former governor performing official actions on an as-needed basis to legitimize, promote, and obtain research studies for Star’s products, including the dietary supplement Anatabloc.
According to court records and evidence, the McDonnells obtained from Williams more than $170,000 in direct payments as gifts and loans, thousands of dollars in golf outings, and numerous other things of value. As part of the scheme, the official actions that Robert McDonnell performed included arranging meetings for Williams with Virginia government officials, hosting and attending events at the Governor’s Mansion designed to encourage Virginia university researchers to initiate studies of Star’s products and to promote Star’s products to doctors for referral to their patients, contacting other Virginia government officials as part of an effort to encourage Virginia state research universities to initiate studies of Star’s products, and promoting Star’s products and facilitating its relationships with Virginia government officials.
The evidence further showed that the McDonnells attempted to conceal the things of value received from Williams and Star to hide the nature and scope of their dealings with Williams from the citizens of Virginia by, for example, routing things of value through family members and corporate entities controlled by the former governor to avoid annual disclosure requirements.
Similarly, on Feb. 15, 2013, Maureen McDonnell was questioned by law enforcement about the loans and made false and misleading statements regarding the defendants’ relationship with Williams. Additionally, after her interview with law enforcement, Maureen McDonnell drafted a handwritten note to Williams in which she falsely attempted to make it appear that she and Williams had previously discussed and agreed that she would return certain designer luxury goods rather than keep them permanently, all as part of an effort to obstruct, influence, and impede the investigation.
The case is being investigated by the FBI, IRS-CI and the Virginia State Police. The case is being prosecuted by Deputy Chief David V. Harbach II of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Michael S. Dry, Jessica D. Aber and Ryan S. Faulconer o f the U.S. Attorney’s Office for the Eastern District of Virginia.Former Virginia Governor and Former First Lady Convicted on Public Corruption ChargesRead the Press Release
RICHMOND, Va. – A federal jury returned guilty verdicts today against former Virginia Governor Robert F. McDonnell and former First Lady of Virginia Maureen G. McDonnell for participating in a scheme to violate federal public corruption laws.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Richard Weber, Chief, IRS Criminal Investigation (IRS-CI); and Colonel W. Steven Flaherty, Virginia State Police Superintendent, made the announcement.
Robert McDonnell and Maureen McDonnell, both 60 and of Glen Allen, Virginia, were convicted of one count of conspiracy to commit honest-services wire fraud and one count of conspiracy to obtain property under color of official right. Robert McDonnell was convicted of three counts of honest-services wire fraud and six counts of obtaining property under color of official right, while Maureen McDonnell was convicted on two of the three honest services wire fraud counts and four of the six counts of obtaining property under color of official right. Maureen McDonnell also was convicted of one count of obstruction of an official proceeding. In total, Robert McDonnell was convicted of 11 of 13 counts and Maureen McDonnell was convicted of 9 of 13 counts.
“This is a difficult and disappointing day for the Commonwealth of Virginia and its citizens,” said U.S. Attorney Boente. “When public officials turn to financial gain in exchange for official acts, we have no choice but to prosecute them. I thank the prosecutors, FBI, Virginia State Police, and the Internal Revenue Service-Criminal Investigation for their exceptional efforts in the investigation and prosecution of this case.”
“As Virginia’s governor, Robert McDonnell and his wife turned public service into a money-making enterprise, abusing the Commonwealth’s highest office to benefit a Virginia businessman in exchange for more than $170,000 in gifts and loans,” said Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division. “In pursuit of a lifestyle that they could ill-afford, McDonnell and his wife eagerly accepted luxury items, designer clothes, free vacations and the businessman’s offer to pay the costs of their daughter’s wedding. In return, McDonnell put the weight of the governor’s mansion behind the businessman’s corporate interests. The former governor was elected to serve the people of Virginia, but his corrupt actions instead betrayed them. Today’s convictions should send a message that corruption in any form, at any level of government, will not be tolerated.”
“Public corruption, particularly among our elected officials, is the FBI’s highest criminal investigative priority,” said FBI Special Agent in Charge Adam Lee. “We will engage and engage vigorously when we receive credible allegations of any federal, state, or local public official illegally using the power of their position to receive a personal benefit. The people of the Commonwealth deserve better than pay-to-play politics.”
“When public officials commit crimes as part of their official duties, they are violating the public trust,” said Richard Weber, Chief, IRS Criminal Investigation. “IRS-CI agents play a critical role in rooting out public corruption of elected officials. The public expects more of their leaders in government and our agents work tirelessly on their behalf to ensure that we are all playing by the same rules.”
According to the evidence presented at trial, from April 2011 through March 2013, the McDonnells participated in a scheme to use the former governor’s official position to enrich themselves and their family members by soliciting and obtaining payments, loans, gifts, and other things of value from Star Scientific, a Virginia-based corporation, and Jonnie R. Williams Sr., then Star Scientific’s chief executive officer. The McDonnells obtained the things of value in exchange for the former governor performing official actions on an as-needed basis to legitimize, promote, and obtain research studies for Star’s products, including the dietary supplement Anatabloc.
According to court records and evidence, the McDonnells obtained from Williams more than $170,000 in direct payments as gifts and loans, thousands of dollars in golf outings, and numerous other things of value. As part of the scheme, the official actions that Robert McDonnell performed included arranging meetings for Williams with Virginia government officials, hosting and attending events at the Governor’s Mansion designed to encourage Virginia university researchers to initiate studies of Star’s products and to promote Star’s products to doctors for referral to their patients, contacting other Virginia government officials as part of an effort to encourage Virginia state research universities to initiate studies of Star’s products, and promoting Star’s products and facilitating its relationships with Virginia government officials.
The evidence further showed that the McDonnells attempted to conceal the things of value received from Williams and Star to hide the nature and scope of their dealings with Williams from the citizens of Virginia by, for example, routing things of value through family members and corporate entities controlled by the former governor to avoid annual disclosure requirements.
Similarly, on Feb. 15, 2013, Maureen McDonnell was questioned by law enforcement about the loans and made false and misleading statements regarding the defendants’ relationship with Williams. Additionally, after her interview with law enforcement, Maureen McDonnell drafted a handwritten note to Williams in which she falsely attempted to make it appear that she and Williams had previously discussed and agreed that she would return certain designer luxury goods rather than keep them permanently, all as part of an effort to obstruct, influence, and impede the investigation.
As a result of the jury’s verdicts, the McDonnells could each face a maximum statutory sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss on the conspiracy to commit honest-services wire fraud count, the honest-services wire fraud counts, the conspiracy to obtain property under color of official right count, and the obtaining property under color of official right counts; and a maximum statutory sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss on the obstruction of an official proceeding count.
The maximum statutory sentences outlined above are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant U.S. Attorneys Michael S. Dry, Jessica D. Aber, and Ryan S. Faulconer of the U.S. Attorney’s Office for the Eastern District of Virginia and Deputy Chief David V. Harbach II of the Criminal Division’s Public Integrity Section. The case is being investigated by the FBI, IRS-CI, and the Virginia State Police.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-12.
Former Virginia Governor and Former First Lady Convicted on Public Corruption ChargesRead the Press Release
RICHMOND, Va. – A federal jury returned guilty verdicts today against former Virginia Governor Robert F. McDonnell and former First Lady Maureen G. McDonnell for participating in a scheme to violate federal public corruption laws.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Richard Weber, Chief, IRS Criminal Investigation (IRS-CI); and Colonel W. Steven Flaherty, Virginia State Police Superintendent, made the announcement.
Robert McDonnell and Maureen McDonnell, both 60 and of Glen Allen, Virginia, were convicted of one count of conspiracy to commit honest-services wire fraud and one count of conspiracy to obtain property under color of official right. Robert McDonnell was convicted of three counts of honest-services wire fraud and six counts of obtaining property under color of official right, while Maureen McDonnell was convicted on two of the three honest services wire fraud counts and five of the six counts of obtaining property under color of official right. Maureen McDonnell also was convicted of one count of obstruction of an official proceeding. In total, Robert McDonnell was convicted of 11 of 13 counts and Maureen McDonnell was convicted of 9 of 13 counts.
“This is a difficult and disappointing day for the Commonwealth of Virginia and its citizens,” said U.S. Attorney Boente. “When public officials turn to financial gain in exchange for official acts, we have no choice but to prosecute them. I thank the Assistant U.S. Attorneys, FBI, Virginia State Police, and the Internal Revenue Service-Criminal Investigation for their exceptional efforts in the investigation and prosecution of this case.”
“As Virginia’s governor, Robert McDonnell and his wife turned public service into a money-making enterprise, abusing the commonwealth’s highest office to benefit a Virginia businessman in exchange for more than $170,000 in gifts and loans,” said Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division. “In pursuit of a lifestyle that they could ill-afford, McDonnell and his wife eagerly accepted luxury items, designer clothes, free vacations and the businessman’s offer to pay the costs of their daughter’s wedding. In return, McDonnell put the weight of the governor’s mansion behind the businessman’s corporate interests. The former governor was elected to serve the people of Virginia, but his corrupt actions instead betrayed them. Today’s convictions should send a message that corruption in any form, at any level of government, will not be tolerated.”
“Public corruption, particularly among our elected officials, is the FBI’s highest criminal investigative priority,” said FBI Special Agent in Charge Adam Lee. “We will engage and engage vigorously when we receive credible allegations of any federal, state, or local public official illegally using the power of their position to receive a personal benefit. The people of the Commonwealth deserve better than pay-to-play politics.”
“When public officials commit crimes as part of their official duties, they are violating the public trust,” said Richard Weber, Chief, IRS Criminal Investigation. “IRS-CI agents play a critical role in rooting out public corruption of elected officials. The public expects more of their leaders in government and our agents work tirelessly on their behalf to ensure that we are all playing by the same rules.”
According to the evidence presented at trial, from April 2011 through March 2013, the McDonnells participated in a scheme to use the former governor’s official position to enrich themselves and their family members by soliciting and obtaining payments, loans, gifts, and other things of value from Star Scientific, a Virginia-based corporation, and Jonnie R. Williams Sr., then Star Scientific’s chief executive officer. The McDonnells obtained the things of value in exchange for the former governor performing official actions on an as-needed basis to legitimize, promote, and obtain research studies for Star’s products, including the dietary supplement Anatabloc.
According to court records and evidence, the McDonnells obtained from Williams more than $170,000 in direct payments as gifts and loans, thousands of dollars in golf outings, and numerous other things of value. As part of the scheme, the official actions that Robert McDonnell performed included arranging meetings for Williams with Virginia government officials, hosting and attending events at the Governor’s Mansion designed to encourage Virginia university researchers to initiate studies of Star’s products and to promote Star’s products to doctors for referral to their patients, contacting other Virginia government officials as part of an effort to encourage Virginia state research universities to initiate studies of Star’s products, and promoting Star’s products and facilitating its relationships with Virginia government officials.
The evidence further showed that the McDonnells attempted to conceal the things of value received from Williams and Star to hide the nature and scope of their dealings with Williams from the citizens of Virginia by, for example, routing things of value through family members and corporate entities controlled by the former governor to avoid annual disclosure requirements.
Similarly, on Feb. 15, 2013, Maureen McDonnell was questioned by law enforcement about the loans and made false and misleading statements regarding the defendants’ relationship with Williams. Additionally, after her interview with law enforcement, Maureen McDonnell drafted a handwritten note to Williams in which she falsely attempted to make it appear that she and Williams had previously discussed and agreed that she would return certain designer luxury goods rather than keep them permanently, all as part of an effort to obstruct, influence, and impede the investigation.
As a result of the jury’s verdicts, the McDonnells could each face a maximum statutory sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss on the conspiracy to commit honest-services wire fraud count, the honest-services wire fraud counts, the conspiracy to obtain property under color of official right count, and the obtaining property under color of official right counts; and a maximum statutory sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss on the obstruction of an official proceeding count.
The maximum statutory sentences outlined above are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant U.S. Attorneys Michael S. Dry, Jessica D. Aber, and Ryan S. Faulconer of the U.S. Attorney’s Office for the Eastern District of Virginia and Deputy Chief David V. Harbach II of the Criminal Division’s Public Integrity Section. The case is being investigated by the FBI, IRS-CI, and the Virginia State Police.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-12.
Former TSA Employee Sentenced to Ten Years in Federal Prison for Distributing Child PornographyRead the Press Release
ALBUQUERQUE – John A. Crowe, 54, of Albuquerque, N.M., was sentenced today for distributing visual depictions of minors engaged in sexually explicit conduct. Crowe will serve a prison term of ten years followed by a five-year term of supervised release. He will be required to register as a sex offender after he completes his prison sentence. Crowe also was ordered to pay $500.00 in restitution to the victim depicted in the image at issue in the crime of conviction.
Crowe was arrested on May 28, 2011, on a criminal complaint charging him with transportation and possession of child pornography, and has been in federal custody since that time. At the time of his arrest, Crowe was employed by the Transportation Security Administration.
In June 2011, Crowe was indicted on child pornography charges. A superseding indictment was filed in July 2012, charging Crowe with advertising child pornography in March 2011, transportation of child pornography in Nov. 2010; distribution of child pornography on two occasions in March 2011, and possession of child pornography from April 2011 to May 2011. The indictment alleged that Crowe committed these offenses in Bernalillo County, N.M.
According to court filings, the investigation leading to Crowe’s arrest began in March 2011, when an officer with the Online Predator Unit of the New Mexico State Police (NMSP) identified an IP address that was being used to share files containing child pornography while conducting an investigation targeting those who share child pornography on peer-to-peer file sharing networks. Subsequent investigation revealed that the IP address was subscribed to Crowe at a residence in the west side of Albuquerque.
On May 26, 2011, Homeland Security Investigations (HSI) and the NMSP executed a search warrant at Crowe’s residence seized a computer and computer-related media. During a recorded interview that day, Crowe admitted using his computer to search for and download child pornography. A forensic examination of the computer and computer-related media revealed that they contained images and videos of child pornography, including videos of minor females who appeared to be filmed by a hidden camera located in a bathroom and a bedroom of a residence. During a recorded interview on May 28, 2011, Crowe admitted recording the videos when he lived in Alabama and Georgia and that the minor females were daughters of former girlfriends who were unaware that he was filming them as they undressed. Crowe acknowledged bringing the child pornography with him when he moved to New Mexico in Nov. 2010.
On Jan. 9, 2014, Crowe pled guilty to Count 6 of the superseding indictment charging him with distribution of child pornography, and admitted distributing child pornography on March 12, 2011.This case was investigated by the Albuquerque office of HSI and the NMSP. It was prosecuted by Assistant U.S. Attorney Jacob A. Wishard as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Former Senior Vice President of Marketing at A&P Sentenced to Three Years in Prison for Wire FraudRead the Press Release
NEWARK N.J. – The former senior vice president of marketing at A&P, a U.S. supermarket and liquor store chain, was sentenced today to 36 months in prison for his role in a scheme to defraud A&P by selling for personal gain event tickets that were intended for A&P’s use, U.S. Attorney Paul J. Fishman announced.
John R. Moritz, 45, of Mason, Ohio, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
From December 2010 through December 2011, Moritz worked at A&P, a U.S. supermarket and liquor store chain headquartered in Montvale, New Jersey. He arranged for A&P to purchase thousands of tickets to sporting events, concerts and other shows that were to be used to reward high-performing A&P employees and for other legitimate business purposes. However, Moritz resold more than 7,000 tickets to third parties over the internet, without A&P’s knowledge or consent. Some of these tickets were for the 2011 Super Bowl, the 2011 New York Yankees playoff games and Bon Jovi, Lady Gaga and U2 concerts. He admitted that as a result of his conduct he fraudulently obtained $1,218,192.
In addition to the prison term, Judge McNulty sentenced Moritz to three years of supervised release and ordered to pay restitution of $3.2 million.
U.S. Attorney Fishman credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark and Evan Weitz of the Asset Forfeiture and Money Laundering Unit.
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Defense Counsel: Lawrence S. Feld Esq. and Paul Silverman Esq. New YorkFormer Senior Vice President of Marketing at A&P Sentenced to Three Years in Prison for Wire FraudRead the Press Release
NEWARK N.J. – The former senior vice president of marketing at A&P, a U.S. supermarket and liquor store chain, was sentenced today to 36 months in prison for his role in a scheme to defraud A&P by selling for personal gain event tickets that were intended for A&P’s use, U.S. Attorney Paul J. Fishman announced.
John R. Moritz, 45, of Mason, Ohio, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
From December 2010 through December 2011, Moritz worked at A&P, a U.S. supermarket and liquor store chain headquartered in Montvale, New Jersey. He arranged for A&P to purchase thousands of tickets to sporting events, concerts and other shows that were to be used to reward high-performing A&P employees and for other legitimate business purposes. However, Moritz resold more than 7,000 tickets to third parties over the internet, without A&P’s knowledge or consent. Some of these tickets were for the 2011 Super Bowl, the 2011 New York Yankees playoff games and Bon Jovi, Lady Gaga and U2 concerts. He admitted that as a result of his conduct he fraudulently obtained $1,218,192.
In addition to the prison term, Judge McNulty sentenced Moritz to three years of supervised release and ordered to pay restitution of $3.2 million.
U.S. Attorney Fishman credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark and Evan Weitz of the Asset Forfeiture and Money Laundering Unit.
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Defense Counsel: Lawrence S. Feld Esq. and Paul Silverman Esq. New YorkFormer Office Manager from Jones Charged with Embezzling Nearly $1 Million from Employer and Tax FraudRead the Press Release
Oklahoma City, Oklahoma – JULIE ANN SMITH (a/k/a "Julie A. Judkins" and "Julia A. Judkins Smith"), of Jones, Oklahoma, has been indicted by a federal grand jury and charged with bank fraud, mail fraud, forged securities, and tax fraud, in connection with embezzling nearly one million dollars from a metro company, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
On September 2, 2014, the federal grand jury returned a 36-count superseding indictment against Smith. The superseding indictment alleges that Smith worked from 2000 until around late June 2012 at Power Equipment & Engineering, Inc. ("PE&E"), in Oklahoma City. At PE&E, Smith was the accounts-payable clerk and officer manager, where she prepared checks and paid invoices for the company. It is alleged that Smith forged approximately 192 PE&E checks, from June of 2002 through June of 2012, by using the company owner’s signature stamp without PE&E’s permission or knowledge. The 192 checks totaled approximately $985,540.14. It is further alleged that Smith disguised the forged checks through false entries on PE&E’s ledger, wrote many of the forged checks to a fake company under her control, and directed other forged checks to credit card companies, financial institutions, and vendors for her personal benefit.
In the superseding indictment, counts 1-16 charge Smith with bank fraud and allege that she fraudulently obtained PE&E’s money, under the control of a local bank, by causing the forged checks to be presented for payment against PE&E’s account at the bank. Counts 17-24 charge Smith with mail fraud. According to these counts, Smith used interstate mail to send forged checks to institutions to pay personal credit card expenses from around January 2007 through June 2012. Count 25 of the superseding indictment charges Smith with aggravated identity theft for fraudulently using the company owner’s signature on a forged check during and in relation to a specific mail fraud count. In the superseding indictment, counts 26-31 allege that Smith made and possessed forged securities of an interstate business—specifically, the forged PE&E checks—with the intent to deceive various payees. The final five counts (32-36) allege that Smith filed materially false federal income tax returns for years 2008 through 2012.
If convicted, Smith faces a prison sentence of up to 30 years for each bank fraud count, up to 20 years for each mail fraud count, up to 10 years for each forged securities count, up to three years for each false tax return count, and a mandatory two-year prison term under the aggravated identify theft count. Smith could also receive an additional $250,000 fine on each count if convicted. The public is reminded that the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Trial is scheduled to start on October 6, 2014, in Oklahoma City.
These charges are the result of an investigation conducted by the Internal Revenue Service - Criminal Investigations, United States Secret Service, Federal Bureau of Investigation, and Oklahoma City Police Department. The case is being prosecuted by Assistant U.S. Attorneys Chris M. Stephens and Jessica L. Perry.
Reference is made to court filings for further information.
Former Medical Technician Charged with Accepting Bribes in Exchange for Falisfying Urinalysis Drug TestsRead the Press Release
TULSA, Okla. — A former medical technician was charged in U.S. District Court Tuesday for accepting bribes in exchange for fraudulently submitting urine specimens for drug analysis, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma.
William Ray Allen, 33, of Tulsa, was charged with four counts of honest services mail fraud and three counts of accepting a bribe. According to the Indictment returned by the Federal Grand Jury, Allen was employed as a medical technician at 12 & 12, Incorporated, a drug treatment facility contracted by the U.S. Probation Office to provide drug testing and treatment services to persons under supervision by order of the U.S. District Court, and was responsible for collecting urine specimens for random urinalysis drug testing.
The Indictment alleges that from July of 2011 to August of 2014: Allen provided prior notification to those who had been selected for random drug testing; substituted his own urine or the urine of others for drug testing instead of collecting and submitting urine samples from the persons subject to Court ordered random drug testing; and, submitted falsified certifications with the substituted urine submitted for analysis. The Grand Jury charged that, as part of the mail fraud, Allen knowingly shipped the fraudulently substituted urine specimens via Federal Express to the U.S. Probation Drug Laboratory in Albuquerque, New Mexico. According to the Indictment, the bribes Allen accepted was the money he received in exchange for the fraudulent submission of false urine specimens for drug analysis.
If convicted, the defendant could be sentenced up to 20 years imprisonment and a $250,000 fine on each count of honest services mail fraud; and, not more than 15 years imprisonment and a $250,000 fine for each bribery count.
The Federal Bureau of Investigation is the investigating agency and Assistant U.S. Attorney Joel-lyn A. McCormick is prosecuting on behalf of the United States.
U.S. v. William Ray Allen
Former Head of Cleveland Anti-Poverty Agency Pleads Guilty to Bribery and Related CrimesRead the Press Release
The former head of a Cleveland-area anti-poverty agency pleaded guilty to accepting more than $23,000 in cash, home renovations and other things of value in exchange for steering work to specific contractors, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office..
Jacqueline K. Middleton, 69, of Shaker Heights, pleaded guilty to two counts of honest services fraud, one count of bribery in federally funded programs and one count of Hobbs Act Conspiracy. She is scheduled to be sentenced Dec. 3.
“Middleton violated the trust of taxpayers and the people she had pledged to serve,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
"Middleton padded her pocket with monies for federally funded contracts she awarded," Anthony said. "Law enforcement will continue to root out individuals illegally capitalizing on their trusted position. ”
Middleton served as president and chief executive officer of the Council of Economic Opportunities of Greater Cleveland. The CEOGC was organized with the purpose of serving low-income people of Cuyahoga County and Greater Cleveland. The CEOGC administered several federal, state and local programs designed to address the needs of low-income individuals, including Head Start, the Community Services Block Grant program and the Home Energy Assistance program.
From 2008 through around August 7, 2012, Middleton used her official position to enrich herself by soliciting and accepting gifts, payments and other things of value from contractors who did business with CEOGC. These gifts and payments were made in exchange for favorable action from Middleton for the payors and their companies, according to the information.
Middleton solicited and accepted gifts, payments and other things of value totaling more than $12,017 from a person identified as Contractor No. 1 and totaling approximately $11,200 from a person identified as Contractor No. 2. The things of value included kickbacks from CEOGC payments, home renovation work and payments to vendors for related supplies on her behalf, according to the information.
Middleton provided official favorable action Company No. 1 and Contractor No. 2 as requested and as opportunities arose. That included authorizing CEOGC contracts which retained Contractor No. 2 for consulting services and which retained Company No. 1 for work including parking lot renovations, classroom remodeling and flooring remodeling at various sites and offices administered by CEOGC, according to the information.
The case is being prosecuted by Assistant U.S. Attorney Michael L. Collyer following an investigation by the Federal Bureau of Investigation and the Department of Health and Human Services – Office of Inspector General.
Former FBI Special Agent, Owner of Retail Pharmacy Plead Guilty to Conspiracy to Defraud the IRSRead the Press Release
TRENTON, N.J. - A former FBI special agent and his wife today admitted colluding to hide her income as part-owner of a retail pharmacy in Piscataway, New Jersey, from the Internal Revenue Service – instead using the cash to pay for home renovations and other personal expenses, U.S. Attorney Paul J. Fishman announced.
Pritesh Desai, 47, and his wife, Darshna Desai, 45, both of Watchung, New Jersey, surrendered to federal authorities this morning. Each pleaded guilty to one count of conspiring to defraud the IRS. The pair entered their guilty pleas to an information before U.S. District Judge Michael A. Shipp in Trenton federal court.
According to documents filed in this case and statements made in court: At the time of the conspiracy, Pritesh Desai was employed as a special agent with the FBI’s New York Field Office until his resignation in July 2013, and Darshna Desai was a part-owner in DVS Pharma Inc., known as Heights Pharmacy. From June 2004 to June 2012, the couple conspired with each other and with Darshna Desai’s partner to conceal cash income from the pharmacy.
Darshna Desai admitted that she or her partner would separate the cash earned by Heights Pharmacy from other income received, pay a portion to Darshna Desai as cash salary, and then split the remainder.
Pritesh and Darshna Desai admitted they took certain actions to conceal her share of the cash, depositing it into various financial institutions and multiple accounts. They also acknowledged they used cash to pay personal living expenses, including renovating their residence, and gave cash to others in exchange for checks the Desais deposited in their personal bank accounts. Pritesh Desai also admitted providing false information to his employer, the FBI, when submitting financial disclosure forms for years 2007 through 2011. He falsely claimed the cash held by his family was gifts from other family members.
For tax years 2004 through 2011, Darshna Desai and her partner filed false corporate income tax returns for the pharmacy. For those same tax years, Darshna Desai and Pritesh Desai filed false joint personal income tax return which also failed to disclose the cash. The total tax loss from the fraud was between $200,000 and $400,000.
The offense to which the Desais pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing for both defendants is scheduled for Dec. 11, 2014.
U.S. Attorney Fishman credited special agents of the Department of Justice, Office of the Inspector General, under the direction of Special Agent in Charge Ronald G. Gardella, and 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 Maureen Nakly and Jacques Pierre of the U.S. Attorney’s Special Prosecutions Division in Newark.
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Pritesh Desai: Michael Critchley and John Vazquez Esqs., Roseland, N.J.
Darshna Desai: Lawrence Horn and Richard Sapinski Esqs., NewarkDesai, Pritesh, Information
Desai, Darshna InformationFormer Executive Director of West Haven Housing Authority Admits Receiving $1.5 Million in BribesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL SIWEK, 55, of North Haven, waived his right to indictment and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to receiving approximately $1.5 million in bribes while serving as the executive director of the West Haven Housing Authority. SIWEK also pleaded guilty to related tax charges.
According to court documents and statements made in court, SIWEK was the executive director of the West Haven Housing Authority (“WHHA”), an agency that received federal funding. As parties of his duties, SIWEK had substantial discretion over awarding WHHA business and contracts. From approximately February 2007 through February 2012, SIWEK received approximately $1.5 million in payments from individuals in exchange for the awarding of business and contracts with the WHHA and entities that the WHHA controlled. SIWEK received these bribes through wire transfers and check payments to himself individually, and to Four Star Development Company LLC, a limited liability corporation that he controlled. SIWEK also received payments that were characterized as “loans,” but which were not subject to any terms or conditions typically associated with commercial loans.
In addition, SIWEK did not report these payments to the IRS, and filed false tax returns that underreported his income and tax liability.
SIWEK pleaded guilty to one count of conspiracy to commit bribery in connection with a program receiving federal funds, which carries a maximum term of imprisonment of five years; one count of bribery, which carries a maximum term of imprisonment of 10 years; and one count of tax evasion, which carries a maximum term of imprisonment of five years.
As part of his plea, SIWEK has agreed to pay restitution in the amount of $1,503,096.91, and back taxes, penalties and interest in the amount of $363,781.70.
A sentencing date is not yet scheduled.
On November 6, 2013, Harry Miconi pleaded guilty to paying hundreds of thousands of dollars in bribes to SIWEK. He also awaits sentencing.
U.S. Attorney Daly stated that the investigation is ongoing.
This matter is being investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Federal Bureau of Investigation, and Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Sarah Karwan.PUBLIC AFFAIRS CONTACT:
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Tom Carson
(203) 821-3722 [email protected]Former Deputy United States Marshal Pleads Guilty to Felony Distribution of Unapproved New Drugs and Felony Distribution of Misbranded DrugsRead the Press Release
SAN JOSE – Aris Aristidis Vavasis pleaded guilty in federal court yesterday to Felony Distribution of Unapproved New Drugs and Felony Distribution of Misbranded Drugs, announced United States Attorney Melinda Haag, Drug Enforcement Administration Special Agent in Charge Jay Fitzpatrick, and U.S. Food and Drug Administration Office of Criminal Investigations Acting Director Philip J. Walsky, and Department of Justice Office of the Inspector General Special Agent in Charge Ronald G. Gardella, New York Field Office.
In pleading guilty, Vavasis admitted to being the owner of the internet supplement company Nutrition Dome, Inc., located at 4518 11th Avenue, 2nd level, Brooklyn, New York, 11219, and to using that company to knowingly distribute two purported dietary supplements, “Methastadrol,” and “Lipodrene,” both of which contained misbranded drugs, in interstate commerce, including to the Northern District of California. Methastadrol contained the Schedule III anabolic steroid Methasterone (also known by the chemical name 17a-methyldrostanolone) as an active ingredient.
Lipodrene contained the active ingredient ephedrine. On February 11, 2004, the FDA published in the Federal Register a final rule that established a regulation declaring dietary supplements containing ephedrine alkaloids adulterated under the Federal Food, Drug, and Cosmetic Act because they present an unreasonable risk of illness or injury under the conditions of use recommended or suggested in labeling, or if no conditions of use are suggested or recommended in labeling, under ordinary conditions of use (69 FR 6787). The final rule became effective on April 12, 2004.
Vavasis admitted that during the time he was operating Nutrition Dome, Inc., he was employed as a Deputy United States Marshal in the Eastern District of New York. In addition to his home computer system, Vavasis utilized the computer system of the United States Marshals Service in the Eastern District of New York, without authorization, to operate Nutrition Dome, Inc. business, including but not limited to communicating with purchasers, fulfilling orders, and otherwise administering the business of Nutrition Dome, Inc. Vavasis retired from the United States Marshals Service after the execution of a federal search warrant at the location of Nutrition Dome in July, 2012.
“The distribution of anabolic steroids and misbranded drugs through internet supplement companies constitutes a serious danger to the health and safety of consumers,” said United States Attorney Melinda Haag. “The fact that this defendant abused his position as a Deputy United States Marshal and utilized the computer system of the United States Marshals Service in the Eastern District of New York to commit these crimes is especially disturbing.”
“Distribution of anabolic steroids and misbranded drugs is a danger to the community. DEA will continue to collaborate with our law enforcement partners to pursue those who violate public trust and put their health and safety at risk,” stated Drug Enforcement Administration, San Francisco Field Office Special Agent in Charge Jay Fitzpatrick.
“Dietary supplements and drugs each have very specific FDA requirements that manufacturers must meet in order to protect the public’s health,” said Philip J. Walsky, acting director, FDA’s Office of Criminal Investigation. “Our agents will continue to pursue and bring to justice those who would put consumers’ health at risk through false representations about the status and safety of the products they sell.”
New York Field Office Special Agent-in-Charge Ronald G. Gardella of the Department of Justice Office of the Inspector General thanked the Drug Enforcement Administration and Food and Drug Administration Office of Criminal Investigation agents who collaborated in the investigation, stating that “the public has every right to expect the highest integrity from those entrusted with authority and we are determined to hold accountable anyone who betrays that trust.”
Vavasis, 51, of Brooklyn, New York, was charged with the introduction and delivery for introduction of an unapproved new drug into interstate commerce, in violation of 21 U.S.C. § 331(d), and the introduction and delivery for introduction of a misbranded drug, in violation of 21 U.S.C. § 331(a). Under the plea agreement, Vavasis pleaded guilty to all counts.
Vavasis was released on a recognizance bond, and his sentencing hearing is scheduled for Dec. 22, 2014, before the Honorable Lucy H. Koh, United States District Court Judge, in San Jose. The maximum statutory penalty for each count in violation of 21 U.S.C. § 331(d) & 331(a) is 3 years custody, 3 years supervised release, and a fine of $10,000.00 plus restitution if appropriate. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Matt Parrella and Jeff Nedrow are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the DEA, the FDA Office of Criminal Investigation, and the Department of Justice Office of the Inspector General.
(Vavasis superseding information )
Former Connecticut Residents Sentenced to Federal Prison for Structuring Embezzled FundsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LYNN A. SCHEUFLER, 36, formerly of Woodstock, Conn., and currently residing in Vermont, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 46 months of imprisonment for structuring hundreds of thousands of dollars in funds that she embezzled from her employer. In addition, Judge Thompson sentenced SCHEUFLER’s husband, CRAIG L. GALLIGAN, 42, to 18 months of imprisonment for his role in the offense. SCHEUFLER and GALLIGAN were also ordered to serve three years of supervised release, during which each are required to perform 150 hours of community service.
According to court documents and statements made in court, SCHEUFLER was the Controller and Chief Financial Officer of a company that owns and operates dining and nightlife venues in the northeastern United States, including locations at Foxwoods Casino and Resort. In that role, she was responsible for filling ATM machines located in the company’s venues out of the cash that managers collected from daily business operations and deposited into nightly deposit bags. Over the course of approximately two years, SCHEUFLER embezzled approximately $2.5 million by taking cash out of the company’s nightly deposit bags and by making unauthorized withdrawals from the company’s cash accounts using the company’s ATM cards.
SCHEUFLER, with the assistance of GALLIGAN, deposited approximately $600,000 in stolen cash into their personal bank accounts. The deposits were illegally structured so that no individual deposit exceeded the $10,000 threshold that would have triggered bank reporting requirements.
Federal law requires all financial institutions to file a Currency Transaction Report (CTR) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.
The investigation revealed that SCHEUFLER and GALLIGAN lost a large portion of the embezzled funds gambling at Connecticut’s casinos.
As part of her sentence, SCHEUFLER was ordered to pay a money judgment of $614,390, approximately $47,000 of which has been satisfied from the sale of property.
On March 7, 2014, SCHEUFLER pleaded guilty to one count of illegally structuring financial transactions as part of a pattern of illegal activity. On August 1, 2013, GALLIGAN pleaded guilty to one count of conspiracy to structure financial transactions.
SCHEUFLER and GALLIGAN were arrested on October 10, 2012, and are currently released on bond. They were ordered to report to prison on October 7.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Michael S. McGarry.PUBLIC AFFAIRS CONTACT:
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(203) 821-3722 [email protected]Former Clinton Township Resident Sentenced for Filing False Claims Against the United StatesRead the Press Release
A former Clinton Township resident was sentenced yesterday to 37 months in prison for filing false claims against the United States, U.S. Attorney Barbara L. McQuade announced today.
Ms. McQuade was joined in the announcement by Acting Special Agent in Charge Jarod Koopman, Internal Revenue Service Criminal Investigation.
United States District Judge Gerald Rosen also imposed a three-year term of supervised release on Lamarjoire Pharr and ordered him to pay $962,952 in restitution to the Internal Revenue Service.
According to court records, from September 2009 to March 2012, Pharr prepared and electronically filed 363 fraudulent federal income tax returns. Virtually all of the tax returns were filed in the names of deceased individuals whose personal information Pharr had obtained online at the Ancestry.com website without the knowledge of those individuals or their survivors or estates. The tax returns claimed refunds of more than $1.5 million based on false information relating to dependents, various tax credits (e.g., earned income credit), and tax withholdings. Pharr filed the returns electronically from, among other places, hotels in Detroit, Miami Beach, and Atlanta. Pharr received $962,952 in refunds, which he used to further his career as a musician and music producer. Evidence gathered in the investigation shows that the refunds were also used to pay hotels, casinos, department stores, bars and adult entertainment establishments.
United States Attorney McQuade stated, "We hope that this prosecution will raise public awareness about tax fraud schemes involving returns filed on behalf of unwitting victims, who are often deceased. Criminals troll websites and death notices to find potential victims. Family members should be vigilant in safeguarding the taxpayer information of their loved ones."
“Pharr went to elaborate lengths to not only steal money from the government but also to steal the identity of innocent, and in many cases deceased, individuals. His actions caused serious harm to those individuals or their survivors, as well as the American taxpayer, who ultimately becomes the victim in these illegal activities. This sentence should serve as a warning to others that are considering similar schemes, that the IRS-CI will be very aggressive in investigating identity theft,” said Jarod Koopman, Acting Special Agent in Charge.
The investigation of this case was conducted by Special Agents of the IRS Criminal Investigation, and prosecuted by Assistant U.S. Attorney Stephen Hiyama.Foreign National Indicted for Growing Nearly 10,000 Marijuana Plants in the Trinity Alps WildernessRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Mexican national Horacio Sierra Campos, 25, charging him with conspiracy to cultivate marijuana, cultivation of marijuana, and depredation of public lands and resources, United States Attorney Benjamin B. Wagner announced.
According to court documents, on August 7, 2014, United States Forest Service agents and Trinity County Sheriff’s deputies entered a large marijuana cultivation site in the Hobo Gulch area of the Trinity Alps Wilderness, which is National Forest land. Officers located approximately 9,998 marijuana plants and 835 pounds of processed marijuana at the site. Sierra Campos was arrested at the marijuana cultivation site and is in custody. The marijuana cultivation caused significant damage to the land and natural resources of the Trinity Alps Wilderness. Law enforcement observed pesticides, insecticides, hundreds of pounds of trash, and irrigation piping diverting water from a nearby stream to the thousands of marijuana plants under cultivation.
This case is the product of an investigation by the United States Forest Service and the Trinity County Sheriff’s Office. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
If convicted, Sierra Campos faces a maximum statutory penalty of 20 years in prison and a $1 million fine for the marijuana cultivation charges and 10 years in prison and a $250,000 fine for the depredation of public lands and resources charge. 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.
Federal Grand Jury Indicts Two Odessans in Bank Fraud SchemeRead the Press Release
The owner and office manager of Shorts Electric, an Odessa company the provided oilfield and residential electric services, are in federal custody charged in connection with an estimated $400,000 bank fraud scheme announced United States Attorney Robert Pitman, Special Agent in Charge Laurie L. Younger, FDIC Office of Inspector General, Dallas Region, and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
A federal grand jury indictment unsealed yesterday charges 44-year-old Shorts Electric owner Lanny Wayne McDorman and 46–year-old Justine Jane Woods with one count of bank fraud. The indictment alleges that from June 2012 until March 2014, the defendants knowingly defrauded Commercial State Bank (CSB). According to the indictment, Shorts Electric had a Business Manager Reserve Account (BMRA) in which CSB would purchase, at a discount, Shorts Electric accounts receivable and transfer the purchase money into the BMRA, thereby allowing Shorts Electric immediate access to operating funds without having to wait for customers invoices to be paid. Full payment on the purchased Shorts Electric invoices would then be obligated to CSB. The indictment alleges that the defendants created and submitted to CSB numerous fraudulent invoices knowing that those invoices would be uncollectable because they did not represent actual money owed to Shorts Electric.
McDorman and Woods face up to 30 years in federal prison and a maximum $1 million fine upon conviction.
“Working alongside our law enforcement partners, we will continue to focus on finding, stopping, and punishing those who commit fraud schemes that impact our financial institutions,” stated FDIC-OIG Special Agent in Charge Laurie L. Younger.
“Bank fraud has the potential to cause immeasurable damage to our community and the FBI will continue to rigorously investigate these allegations with our law enforcement partners. The arrests of these individuals will send notice that the FBI will continue to protect the community from schemes to defraud financial institutions insured by the FDIC,” stated FBI Special Agent in Charge Douglas E. Lindquist.
The defendants, who were arrested by FDIC-OIG and FBI agents yesterday, remain in federal custody awaiting an arraignment and detention hearing scheduled for 3:00pm on September 9, 2014, before United States Magistrate Judge David Counts in Midland.
Assistant United States Attorney John Klassen is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla. — The results of the September 2014 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Jose Elias Aroca-Lara. Alien in the United States After Deportation. Aroca-Lara, 32, is charged with having unlawfully returned to the United States after being deported in January 20006 at Harlingen, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. U.S. Immigration and Customs Enforcement is the investigative agency.
Steven Ray Auten. Bank Robbery. Auten, 30, of Owasso, is charged with robbing the International Bank of Commerce in Owasso by use of a hoax bomb. If convicted, the statutory maximum penalty is 25 years in prison and a $250,000 fine. The Federal Bureau of Investigation is the lead investigative agency.
Raymundo Duran, Jorge Jesus Campos-Rodriguez, Robert Wilkerson, Steven James Hernandez, Thomas Carranza, and Leonel Mercado. Drug Conspiracy. Duran, 29, Mercado, 22, both of Perris, California, Campos-Rodriguez, 25, of Colton, California, Wilkerson, 51, of Riverside, California, Hernandez, 56, of San Bernardino, California, and Carranza, 47, of Carson, California, are charged with a drug conspiracy involving 500 grams or more of methamphetamine from April 2012 to January 2013. If convicted, the statutory penalty is not less than 10 years and up to life in prison and a $10,000,000 fine. The defendants also face entry of a $500,000 money judgment. The Drug Enforcement Administration is the investigating agency.
Jose Bernardo Gonzalez-Ramos. Alien in the United States After Deportation. Gonzalez-Ramos, 28, is charged with having unlawfully returned to the United States after being deported in September 2011 at Laredo, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. U.S. Immigration and Customs Enforcement is the investigative agency.
Steven Edward Johnson and Chailla Michelle Johnson. Possession of Methamphetamine with Intent to Distribute. Steven Johnson, 41, and Chailla Johnson, 33, both of Tulsa, are charged with possessing 50 grams or more of methamphetamine with intent to distribute. If convicted, the statutory penalty is not less than five years and not more than 40 years in prison and a $5,000,000 fine. U.S. Immigration and Customs Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigating agencies.
Agustin Lechuga-Munoz. Alien in the United States After Deportation. Lechuga-Munoz, 32, is charged with having unlawfully returned to the United States after being deported in September 2010 at Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. U.S. Immigration and Customs Enforcement is the investigative agency.
Victor Lozaria-Montoya. Alien in the United States After Deportation.Lozaria-Montoya, 22, is charged with having unlawfully returned to the United States after being deported in April 2013 at Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. U.S. Immigration and Customs Enforcement is the investigative agency.
Jessica Lynn Nealis. Possession of Methamphetamine with Intent to Distribute. Nealis, 27, of Springfield, Missouri, is charged with possessing methamphetamine with intent to distribute. If convicted, the statutory maximum penalty is 20 years in prison and a $1,000,000 fine. The defendant also faces entry of a money judgment and forfeiture of seized currency. The Indictment is the result of a joint investigation by the Eastern Shawnee Tribal Police and the Bureau of Indian Affairs-Office of Justice Services.
Roberto Perez-Ruano. Alien in the United States After Deportation.Perez-Ruano, 33, is charged with having unlawfully returned to the United States after being deported in September 2011 from Laredo, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. U.S. Immigration and Customs Enforcement is the investigative agency.
Corry Donta Purify. Felon in Possession of a Firearm and Ammunition and Maintaining a Drug Involved Premise. Purify, 38, of Tulsa, is charged with unlawfully possession of a .40 caliber pistol and ammunition after prior felony convictions and with maintaining a drug involved premise. If convicted, the statutory maximum penalty for the firearm and ammunition charge is 10 years in prison and a $250,000 fine; and for maintaining a drug involved premise charge is 20 years in prison and a $1,000,000 fine. The defendant also faces forfeiture of the firearm and ammunition. The Federal Bureau of Investigation is the investigating agency.
Truong Son Do, Hong Van Thi Nguyen, and Vinh Nguyen. Drug Conspiracy, Possession of Marijuana with Intent to Distribute, and Receipt of a Firearm While Under Indictment. Do, 30, Hong Van Thi Nguyen, 29, and Vinh Nguyen, 26, all of Broken Arrow, are charged with drug conspiracy involving marijuana and with possession of less than 50 kilograms of marijuana with intent to distribute. In addition, Do is charged with receiving an AK-47 while under Indictment in Tulsa County District Court. If convicted, the statutory maximum penalty for each count is five years in prison and a $250,000 fine. The defendants face entry of a money judgment and forfeiture of the firearm. The Federal Bureau of Investigation is the investigating agency.
Aaron Grant Washington. Distribution of Methamphetamine. Washington, 39, of Tulsa, is charged with distributing methamphetamine. If convicted, the statutory maximum penalty is 20 years in prison and a $1,000,000 fine. The indictment is the result of a joint investigation by the Osage Nation Police Department and the Bureau of Indian Affairs-Office of Justice Services.
Federal Fugitive Extradited from Argentina Sentenced to Three Years in Prison for Gun OffenseRead the Press Release
EUGENE, Ore. – Patrick Champlin Tansy, 50, was sentenced on September 2, 2014, to thirty-seven months in federal prison after pleading guilty to felon in possession of a firearm.
On November 7, 1996, Tansy and another man were cutting firewood on federal land near Lapine, Oregon. Law enforcement officers from the U.S. Bureau of Land Management, U.S. Forest Service and local police made contact with the two men after receiving information that trees in the area were being cut without proper permits.
In the course of conducting a search for officer safety, a .22 caliber pistol was discovered in Tansy’s back pocket. Police knew from previous contacts with Tansy that he was a convicted felon and they arrested him for unlawful possession of a firearm.
After Tansy’s arrest, federal authorities widened the investigation and a federal grand jury in Eugene later indicted Tansy for multiple counts of felon in possession of a firearm, as well as charges relating to the unlawful taking of timber on public land. Tansy had previously been convicted in California in 1989 on a felony narcotics charge.
In April 2002, Tansy pled guilty to one count of felon in possession of a firearm and was allowed to remain out of custody while awaiting sentencing. Tansy failed to appear for his sentencing hearing in Eugene and a warrant was issued for his arrest. Authorities later learned that Tansy fled Oregon and moved his family to Buenos Aires, Argentina. While in Argentina, Tansy assaulted his wife during a domestic dispute and was ultimately convicted and sentenced to prison. He was released to U.S. authorities in January 2014 in response to a request for extradition.
The Bureau of Land Management, U. S. Forest Service and U. S. Marshal Service worked with state and local police on the investigation. Assistant U.S. Attorney William “Bud” Fitzgerald prosecuted the case.
Federal and State Authorities Arrest 22 in Connection with Austin Area Steroid Distribution OperationRead the Press Release
In the Austin area today, federal and state authorities arrested 22 individuals, including ringleaders 54–year-old Timothy John Bruner of Leander, Texas, and 23-year-old Ryan Robert Rowland of Round Rock, Texas, in connection with a steroid distribution operation announced United States Attorney Robert Pitman and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
Six of those arrested were charged by federal criminal complaints unsealed today; the remaining 16 individuals face state charges. In addition to Bruner and Rowland, those charged by federal criminal complaint include: 42-year-old Ronald Marion Butsch of Austin; 47-year-old Dan Lee of Austin; 49-year-old Timothy John Moore of Austin; and, 58-year-old Don Glen Zachary of Austin.
Each is charged with conspiracy to possess with intent to distribute a controlled substance. The criminal complaints allege that since January 2014, the defendants conspired to distribute more than 1,000 dosage units of steroids in tablet form (Anavar and Winstrol) and over 200 10cc vials of steroids in liquid form (Testosterone, Deca Durabolin and Trenbolone).
“The success of Operation Blue Juice exemplifies the outstanding cooperation and coordination among federal, state and local law enforcement agencies. DEA has worked closely with our law enforcement partners in the state of Texas and around the country in order to enhance the impact on this drug trafficking organization while increasing the quality of life in the surrounding communities of Austin,” said Joseph M. Arabit, Special Agent in Charge of the Drug Enforcement Administration-Houston Field Division.
Upon conviction, the defendants face up to 20 in federal prison and a maximum $250,000 fine.
During this eight-month-long operation, investigators conducted several controlled purchases of steroids from Bruner and Rowland. To date, authorities have seized significant amounts of steroids, $300,000 in U.S. Currency and other assets in connection with this investigation.
These charges and arrests resulted from an investigation conducted by the Drug Enforcement Administration, Texas Department of Public Safety, Cedar Park Police Department, Austin Police Department, Williamson County Sheriff’s Office and the Williamson County Constable’s Office—Pct. 2. Assistant United States Attorney Mark Marshall is prosecuting this case on behalf of the Government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Father and Son Charged with Illegally Importing Counterfeit Sports JerseysRead the Press Release
An indictment was filed today charging Shawn Robinson, 30, of Enola, Pennsylvania, and Neil Robinson, 62, of Bensalem, PA, with conspiracy to trafficking in and illegally import counterfeit sports jerseys and trafficking in counterfeit goods, announced United States Attorney Zane David Memeger. Neil Robinson is also charged with smuggling.
The indictment alleges that, between approximately September of 2007 and July 2, 2014, the father and son imported and sold counterfeit sports jerseys that they bought from unauthorized manufacturers in China. These included baseball, football, hockey, and basketball jerseys, and each had a counterfeit trademark of the sports league on the jersey. The indictment alleges that the Robinsons imported more than 8,500 counterfeit sports jerseys and paid the unauthorized manufacturers approximately $200,000 for these products.
If convicted, Shawn Robinson faces a maximum possible sentence of 15 years in prison, a fine of up to $2.25 million, up to three years of supervised release, restitution, forfeiture, and a $200 special assessment; Neil Robinson faces a maximum possible sentence of 175 years in prison, a fine of up to $15.5 million, up to three years of supervised release, restitution, forfeiture, and a $1,300 special assessment.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Albert S. Glenn.
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Executives at Youngstown Construction Company Sent to Prison for Tax ConvictionRead the Press Release
Two officials at a Youngstown construction and excavation company were each sentenced to nearly two years in prison for willfull failure to pay taxes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Scott Bonamase, age 49, of Streetsboro, Ohio, and David Bonamase, age 53, of Canfield, Ohio, were sentenced to 21 months in prison after they avoided paying more than $279,000 in taxes, according to the indictment.
The charges were in connection with their operation of A. Bonamase Contracting, Inc., which employed between 10 to 25 employees for the years 2006 through 2009. During that time period, Scott Bonamase willfully under-reported employee gross wages to the Internal Revenue Service and Scott and David Bonamase omitted payments to employees in the books and records of the company, according to court documents.
A. Bonamase Contracting, Inc. had contracts with government agencies that required certified payroll reports to verify that they were paying the prevailing wage. Scott and David Bonamase willfully falsified, signed, and submitted certified payroll reports to the government. Scott and David Bonamase certified that their employees were being paid the prevailing when, in fact, they were paid less, according to court documents.
The case results from an investigation conducted by the United States Department of Labor and Department of Housing and Urban Development, Office of the Inspector General and the Internal Revenue Service, Criminal Investigation agents. This case is being prosecuted by Assistant United States Attorney Henry F. DeBaggis.
Eighteen Individuals Charged with Stealing More Than $1 Million as Part of Operation Walking DeadRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the filing of federal charges against individuals in 18 separate cases. These individuals have been charged with stealing more than $1 million in federal benefits to which they were not entitled. The penalty for stealing federal benefits or making false statements is up to 10 years in federal prison per count. These Middle District of Florida cases arose as the result of Operation Walking Dead, an operation initiated and overseen by the Social Security Administration - Office of Inspector General with assistance from multiple other federal and local law enforcement agencies.
These cases were investigated by the Social Security Administration – Office of Inspector General, the United States Marshals Service, the United States Secret Service, the Department of Health and Human Services - Office of Inspector General, the Department of Treasury - Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Tampa Police Department, the Orange County Sheriff’s Office, the Lake County Sheriff’s Office, and the Suwannee County Sheriff’s Office. These cases will be prosecuted by Assistant United States Attorneys throughout the Middle District of Florida, including Tama Koss Caldarone, Jeffrey Michelland, Joseph Schuster, David Haas, James Mandolfo, Robert Bodnar, Shawn Napier, Embry Kidd, David Haas, Andrew Searle, Bruce Ambrose, Amanda Kaiser, Adam Saltzman, and Stacie Harris.
An information and an indictment are merely formal charges that a defendant has committed a violation of federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
Operation Walking Dead Case SummariesDonna Bennett (68, Dunedin) has been charged with theft of government funds. According to her plea agreement, from June 3, 2009 through November 1, 2013, Bennett fraudulently collected approximately $60,581.00 of her mother’s Social Security benefits after her mother’s death on May 19, 2009. At the time of her mother’s death, Bennett was an authorized user on her mother’s account, which received Social Security benefit payments. Bennett transferred the Social Security funds from her mother’s account to another account that Bennett controlled.
James Birney (47, Oldsmar) has been charged with theft of government funds. According to his plea agreement, from March 2008 through February 2014, Birney fraudulently collected approximately $95,556 of his mother’s Social Security benefits after her death in February 2008. At the time of his mother’s death, Birney had an ATM card for the account where his mother’s Social Security benefit payments were direct-deposited. After his mother’s death, Birney made ATM withdrawals of his mother’s Social Security benefits from his mother’s bank account.
Linda Byerly (37, Tampa) has been charged with theft of government funds. According to her plea agreement, beginning in June 2012, and continuing through January 2013, Byerly defrauded the Social Security Administration of $9,749.73. Byerly was a recipient of Social Security benefits. The government’s investigation revealed that Byerly reported to the Social Security office that she had not received her monthly payment. She then received a paper replacement check. Byerly took the account number from the bottom of the Social Security replacement check and placed that account number on fraudulent checks, and then wrote checks for her personal expenses against the Social Security account. The fraudulent checks totaled approximately $8,574.73. A further investigation by the Social Security Administration revealed that Byerly lied about her living arrangements, thereby resulting in the payment of $1,175.00 in Social Security benefits payments to which she was not entitled.
Mary Francenia Campbell (58, Tampa) has been charged with theft of government funds. According to the indictment, from May 2007 through March 2014, Campbell fraudulently collected approximately $81,399.40 of her mother’s Social Security benefits after her mother’s death in April 2007. The Social Security Administration has recovered $19,064.33 of the funds fraudulently paid to Campbell.
Sewan Chukes, aka Sewan Barner, (41, Sylacauga, Alabama) has been charged with theft of government funds. According to the indictment, Chukes received $34,700 in Supplemental Security Income benefits for her minor child when she was not entitled to the benefits because she was no longer had custody of her child and did not provide for her care and support.
Etheal Clark (46, Naples) has been charged with one count of theft of government property, and two counts of making false statements. According to the indictment, Clark converted to her own use Social Security benefits that were issued to another individual, after that individual passed away on April 25, 2003. The Social Security Administration has determined the loss in this matter to be approximately $124,529.40.
Lonnie Leroy Hicks (68, Estero) has been charged with theft of government funds. According to the indictment, Hicks applied for and received Social Security Administration benefits for his son while his son resided in Mexico with his mother. Hicks unlawfully collected Social Security disability payments for his son as a representative payee and concealed the fact that his son was not living with him. As a result of the fraud, Hicks secured $76,204.00 in SSA payments to which he was not entitled.
Lisa Iaeger, aka Lisa Iaeger-Ewing (37, Live Oak) has been charged with theft of government funds. According to the indictment, Iaeger received $26,050 in Supplemental Security Income benefits for her minor child when she was not entitled to the benefits because she no longer had custody of her child and did not provide for his care and support.
Frances S. Kitsock-Harbot (61, Altamonte Springs) has been charged with theft of government funds. According to the indictment, Kitsock-Harbot collected $91,051 in Social Security Retirement Insurance Benefits which she was not entitled to receive.
Mona Lesa Mackey (57, Bonita Springs) has been charged with theft of government funds. Mackey concealed the fact that her husband died and continued receiving his Social Security Administration (SSA) disability benefits after his death. As a result of the fraud, Mackey secured $139,919.47 in SSA payments to which she was not entitled.
Bilma Ruth Gonzalez Maldonado, a/k/a Bilma Ruth Fontanez, (51, Orlando) has been charged with theft of government funds. According to the indictment, beginning in March 2001 and continuing until August 2012, Gonzalez Maldonado stole $51,809 from the United States government by claiming benefits that did not belong to her.
Allena McHaffie (57, Tavares) has been charged with theft of government funds. According to the indictment, from August 2004 to January 2014, McHaffie fraudulently received $103,411 in Social Security benefits that were intended for her deceased mother.
Oveda Miller (51, Mt. Dora) has been charged with theft of government funds. According to the indictment, Miller collected more than $86,880 in benefits to which she was not entitled.
Irene Roberts (69, Lakeland) has been charged with theft of government funds and making false statements. According to the indictment, from January 2000 through December 2013, Roberts fraudulently collected approximately $75,986.00 of Supplemental Security Income benefits by providing false information about her marital status, living arrangements, and household income to the Social Security Administration.
Ruby Smith (61, Tampa) has been charged with theft of government funds. According to the indictment, from June 2004 and continuing through September 2012, Smith fraudulently collected approximately $37,211.46 of Supplemental Security Income benefits by providing false information about her marital status, living arrangements, and household income to the Social Security Administration.
Geneva Swain (66, Orlando) has been charged with theft of government funds. According to the indictment, Swain received benefits from the Social Security Administration to which she was not entitled.
Amanda Wheeler, aka Amanda Smyth (30, Orlando) has been charged with theft of government funds. According to the indictment, Wheeler received $51,564.00in Social Security Widow’s Benefits in the name of a beneficiary who was deceased. Because the beneficiary was deceased, Wheeler was not entitled to the benefits.
Robin K. Wisniewski, a/k/a "Robin Sabatine," (53, Fort Myers) has been charged with theft of government funds and concealment of an event that would have affected the ability to obtain Supplemental Security income. According to the superseding indictment, Wisniewski continued receiving Social Security Administration Retirement and Survivors Insurance benefits payments paid to her mother, after her mother’s death. Wisniewski secured at least $25,793.41 in SSA payments to which she was not entitled. Wisniewski also was a Supplemental Security Income recipient. Wisniewski did not disclose the income she received from her deceased mothers’ widow benefit, and also failed to inform SSA that she was employed and received wage income from a CPA in Fort Myers. The total loss amount in this case is $38,599.41.
Edgewood Man Sentenced for Violating Federal Wildlife Laws Prohibiting Sale of Eagle FeathersRead the Press Release
ALBUQUERQUE – Dale N. Smith, 60, of Edgewood, N.M., was sentenced today for violating the Migratory Bird Treaty Act by selling or offering to sell Bald Eagle feathers. Smith, who has been in custody since April 2014, received a sentence of time served, but will remain in federal custody until Dec. 9, 2014, for violating his parole by committing the crime of conviction in this case.
Smith was arrested on April 10, 2014, on a criminal complaint charging him with violating the Migratory Bird Treaty Act, the Lacey Act and the Bald and Golden Eagle Protection Act in March 2014, in Santa Fe County, N.M. Smith was indicted on May 7, 2014, and charged with three counts of violating the Migratory Bird Treaty Act and one count of violating the Lacey Act.
Smith, a member of the Lakota/Sioux Tribe of the Hunkpapa Band of Lakota, was charged as the result of an undercover investigation by the U.S. Fish and Wildlife Service that began on March 7, 2014, and concluded with Smith’s arrest on April 10, 2014. The investigation was initiated after the U.S. Fish and Wildlife Service received information that Smith had posted on an Internet website photographs of Indian arts and crafts which appeared to include federally protected feathers.
On March 7, 2014, an undercover agent contacted Smith and inquired about the feathers on one particular piece of art. Smith responded that the feathers were Bald Eagle feathers and offered to sell the artwork for $1,000. On March 20, 2014, Smith sold a feather fan containing Bald Eagle feathers and a medicine wheel containing Bald Eagle feathers to the undercover agent for $1,000. On March 20, 2014 and again on March 24, 2014, Smith offered to sell a headdress with bald eagle feathers to the undercover agent for $2,000.
On June 25, 2014, Smith pled guilty to one count of violating the Migratory Bird Treaty Act, and admitted selling a feather fan with Bald Eagle feathers to an undercover agent on March 20, 2014. In his plea agreement, Smith acknowledged that the Bald Eagle qualifies as a migratory bird and that he violated the Migratory Bird Treaty Act when he sold the Bald Eagle feather fan to the undercover agent.
Bald Eagles are amongst more than 1000 wild birds protected under the federal wildlife laws, including the Migratory Bird Treaty Act, the Bald and Golden Eagle Protection Act, and the Lacey Act. Among other things, these laws prohibit the possession, use, and sale of the feathers or other parts of federally protected birds, as well as the unauthorized killing of these birds, to help ensure that the Eagle and other bird populations remain healthy and sustainable.
This case was prosecuted by Assistant U.S. Attorney Paul H. Spiers. The case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement with assistance from the New Mexico Game and Fish Department, Homeland Security Investigations, the U. S. Marshals Service, and Santa Fe County Sheriff's Office.
The mission of the U.S. Fish and Wildlife Service is to conserve, protect, and enhance fish, wildlife, plants, and their habitats for the continuing benefit of the American people. It is both a leader and trusted partner in fish and wildlife conservation, known for its scientific excellence, stewardship of lands and natural resources, dedicated professionals, and commitment to public service. For more information on its work and the people who make it happen, visit www.fws.gov. Connect with its Facebook page at www.facebook.com/usfws, follow its tweets at www.twitter.com/usfwshq, watch its YouTube Channel at http://www.youtube.com/usfws and download photos from its Flickr page at http://www.flickr.com/photos/usfwshq.Duneweg Man Pleads Guilty to Sexually Exploiting 4-year-old Child, 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 Duneweg, Mo., man pleaded guilty in federal court today to sexually exploiting a 4-year-old child to produce child pornography.
Tony Lasiter, 32, of Duneweg, 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, Lasiter used his cell phone to take nude photos of a 4-year-old child (identified in the indictment as “Jane Doe”) while she was in the bathtub and while she was lying in a bed with someone touching her in a sexual manner. Lasiter downloaded the photos to his laptop computer, then transferred the files to an SD card. The files were discovered when the victim’s father noticed the SD card in the computer and opened the files, according to court documents. The photos were taken in August 2013.
Under federal statutes, Lasiter 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 U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cyber Crimes Task Force, the Duneweg, Mo., Police Department, the Sarcoxie, Mo., Police Department and the Jasper County, Mo., Sheriff’s Department.
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."District Man Sentenced to More Than 11 Years in Prison for Fatally Stabbing Fellow Marine-Attack Took Place in April 2012 in Southwest Washington-Read the Press Release
WASHINGTON – Michael Poth, 22, of Washington, D.C., was sentenced today to 11 years and three months in prison after earlier being found guilty of manslaughter while armed in the fatal stabbing of a fellow U.S. Marine Corps enlistee, U.S. Attorney Ronald C. Machen Jr. announced.
Poth was found guilty by a jury in December 2013, following a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Russell F. Canan. Upon completion of his prison term, Poth will be placed on five years of supervised release.
According to the government’s evidence, Poth and the victim, Philip Bushong, 24, were active duty U.S. Marine Corps enlistees. At the time of the incident, the defendant was a private first class and was assigned to the Marine Barracks Washington, while the victim, a lance corporal, was a few days away from receiving an honorable discharge and was in the District of Columbia visiting friends. The men did not know one another. In the early morning hours of April 21, 2012, both were in the area near the 700 block of Eighth Street SE, near the Marine Barracks. Multiple bars and restaurants are in the area.
Poth walked by Lance Cpl. Bushong, who was with a group of friends. Shortly after he passed by the group, Lance Cpl. Bushong yelled something at the defendant. Poth took offense, took out a small pocket knife from his pocket, and waved it in the air toward Lance Cpl. Bushong and his group of friends. Poth also muttered out loud that he was going to “cut someone’s (expletive) lungs out.”
About 10 minutes later, Poth, after circling the block, aggressively walked toward Lance Cpl. Bushong, who was still in the area talking to a friend. Poth walked up to Lance Cpl. Bushong, uttered an anti-gay slur, and then kept walking. Lance Cpl. Bushong proceeded to follow Poth, and the two began to argue. As Lance Cpl. Bushong drew back his fist to punch Poth, Poth stated, “I’m going to stab you.” He then drew his knife and stabbed Lance Cpl. Bushong once in chest. Lance Cpl. Bushong died about two hours later.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department and the Naval Criminal Investigative Service, and thanked the U.S. Marine Corps for their cooperation. He also expressed appreciation for the work of the District of Columbia Department of Forensic Sciences and the District of Columbia Office of the Chief Medical Examiner. In addition, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Sandra Lane and Alesha Matthews; Victim/Witness Advocate Tamara Ince; David Foster, Katina Adams-Washington, and La June Thames, all of the Victim Witness Assistance Unit, and Litigation Technology Specialists Will Henderson and Paul Howell. Finally, he praised Assistant U.S. Attorney Michael Liebman, who prosecuted the case.
14-193District Man Pleads Guilty to Aggravated Assault, Admits Sexually Assaulting His WifeDefendant Shocked Wife with TaserRead the Press Release
WASHINGTON – A 49-year-old man, of Washington, D.C., pled guilty today to a charge of aggravated assault stemming from a recent attack in which he shocked his wife with a Taser at their apartment, U.S. Attorney Ronald C. Machen Jr. announced.
The man, who is not identified here to protect the privacy of the victim, entered the guilty plea in the Superior Court of the District of Columbia. The Honorable Russell F. Canan scheduled sentencing for Nov. 7, 2014.
According to the government’s evidence, on Aug. 3, 2014, the defendant became angry with his wife and began shocking her with a Taser, knocking her to her knees in the bedroom of their Southeast Washington apartment. He then pushed her onto the floor, sat on her chest and continued shocking her face and head. When her head began swelling up, the defendant left the room to get ice and a towel. Upon returning to the bedroom, he discovered that she was trying to crawl away. He then went to another room, retrieved a baseball bat, and began striking her in the head. He pulled the victim to her feet and began punching her in the face. Finally, he ordered the victim onto her bed, where he sexually assaulted her.
The victim suffered multiple injuries, including a fractured cheek. She pleaded with her husband to call an ambulance. Fearing that she’d report what he’d just done, he refused to do so. After the victim promised not to tell on him, he agreed to drive her to the hospital. At the hospital, when the defendant stepped away briefly, the victim reported what he had done to her. An officer with the Metropolitan Police Department, who was at the hospital on another matter, was notified and the defendant was arrested.
In announcing the plea, U.S. Attorney Machen praised the work of members of the Metropolitan Police Department’s Sexual Assault Unit. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist D’Yvonne Key and Victim/Witness Advocate Veronica Vaughan. Finally, he commended Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted this case.
14-194Denzel Watson and Jessica Elder Sentenced for Attempted Straw Purchase of A FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Denzel Watson of Brooklyn, New York was sentenced today for aiding and abetting the making of false statements in the attempted acquisition of a firearm. Chief United States District Judge Christina Reiss, sitting in Burlington, sentenced Watson to a four-month term of imprisonment, to be followed by two years of supervised release, which includes four months of location monitoring.
According to court documents, on February 20, 2013, ATF agents responded to the Powderhorn gun shop in Williston after receiving a report of a straw purchase in progress. It is a violation of federal law for an individual prohibited from purchasing a firearm to have another purchase the firearm for him. Upon responding to the scene, agents learned that Jessica Elder of Colchester was inside the store attempting to buy a .357 caliber handgun while another individual sat in a car in the adjacent parking lot. Agents approached Elder and the waiting individual, Denzel Watson, when Elder returned to the vehicle. Subsequent investigation revealed that Watson had provided Elder with over $300 to purchase him the gun at Powderhorn. Due to law enforcement intervention, Watson and Elder were unable to complete the firearm transaction. One month after his encounter with ATF agents in Vermont, the New York City Police Department arrested Watson and charged him with attempted criminal possession of a weapon in connection with his possession of a firearm in Brooklyn. Watson sustained a misdemeanor conviction in connection with his New York case.
On June 17, 2014, Chief Judge Reiss sentenced Elder to a time-served sentence of approximately six months and three weeks, to be followed by two years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kevin J. Doyle handled the case for the government. Defense counsel is David F. Kidney of Rubin, Kidney, Myer & Vincent in Barre.
Defendant Kenneth Frederick Calvo Sentenced in U.S. District CourtRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that KENNETH FREDERICK CALVO was sentenced this week in the District Court of Guam by Chief Judge Frances Tydingco-Gatewood, to 108 months incarceration, and three years of supervised release.
Defendant Calvo pled guilty on December 17, 2013 to Attempted Possession of Methamphetamine with Intent to Distribute, in violation of Title 21 U.S.C. Section 841(a)(1). Defendant Calvo received a package which contained 214.9 grams of methamphetamine hydrochloride. The drug was sent from California and Defendant Calvo intended to distribute the drug on Guam. The package was detected and intercepted by the United States Postal Service.
United States Attorney Limtiaco thanks the United States Postal Service for their vigilance in the detection of drugs which are mailed to Guam through the United States Postal system. Credit is also given to Homeland Security Investigations who participated in the investigation. The case was handled by Assistant U.S. Attorney R. San Nicolas.Daughter of Breakthrough Pain Therapy Center Owners Sentenced to Serve Eighteen Years in PrisonRead the Press Release
KNOXVILLE, Tenn. – On Sept. 4, 2014, Wendi Henry, 45, of Blount County was sentenced to serve 216 months in prison by the Honorable Thomas A. Varlan, Chief U.S. District Judge.
After a jury trial in October 2013, Henry was convicted of conspiracy to distribute oxycodone and other controlled substances in conjunction with her role in the operation of Breakthrough Pain Therapy Center in Maryville. Henry’s parents, Randy and Sandra Kincaid, the co-owners of Breakthrough, and her brother Dustin Morgan, were also convicted and previously sentenced.
These charges and subsequent convictions resulted from a lengthy investigation by the Internal Revenue Service – Criminal Investigation, Fifth Judicial Drug Task Force, and Drug Enforcement Administration. The pain clinic ceased operations when it was raided by federal and local law enforcement agents in December 2010, where agents seized significant quantities of prescription narcotic pain pills, firearms, and nearly $700,000 in cash.
“Thanks to the cooperative efforts of the federal, state and local agencies who investigated this case, all of those involved received lengthy sentences for their criminal conduct,” said U.S. Attorney Bill Killian.
Assistant U.S. Attorneys Jennifer Kolman and Frank M. Dale, Jr. represented the United States during the trial and sentencing.
Covington Man Sentenced to 20 Years for Distribution of Heroin Resulting in DeathRead the Press Release
COVINGTON, KY - A Covington, Ky., man, who has previously admitted in federal court that he sold heroin that resulted in the death of one of his customers, was sentenced today to 20 years in prison.
U.S. District Judge David L. Bunning sentenced 29 year-old Timothy Tingle-Brown for distributing heroin that resulted in death. Under federal law, Tingle-Brown must serve at least 85 percent of his prison sentence and will be on supervised release for three years following the completion of his prison term.
Tingle-Brown admitted to selling heroin to a man at an apartment in Taylor Mill, Ky., on April 20, 2013. The man subsequently died from an overdose from the heroin that Tingle-Brown had sold to him.
In June of this year, Tingle-Brown pleaded guilty to the charge shortly after the start of his trial. He was indicted in September 2013.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and James V. Allen, Acting Special Agent in Charge, Detroit Field Division, Drug Enforcement Administration, jointly announced the sentence.
The investigation was conducted by the Cincinnati Resident Office of the Drug Enforcement Administration, the Taylor Mill Police Department, and the office of the Kenton County Commonwealth Attorney. Assistant U.S. Attorney Tony Bracke represented the federal government in this matter.
Coos County Man Sentenced to 27 Months for Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
EUGENE, Ore. – On September 4, 2014, Richard Walsh Curtis, 44 years, of Coos Bay, Oregon, was sentenced by U.S. District Chief Judge Ann Aiken to 27 months in federal prison for unlawful possession of a firearm and ammunition. Upon his release from prison, Curtis will be on supervised release for three years.
On August 18, 2012, officers responded to a rural property near Coos Bay because a caller had reported that Curtis, a known felon, was shooting a firearm into the trees. Upon arrival, officers encountered Curtis and seized a loaded .22 caliber revolver from him. Officers learned that Curtis had previously shown the firearm to a young child and had a history of terrorizing the neighbors – for instance, one neighbor reported Curtis had used a chainsaw to cut open his house door and then assaulted him. Curtis has prior felony convictions for assault in the fourth degree constituting domestic violence, felon in possession of a firearm, and possession of a controlled substance.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Oregon State Police, and the Coos County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik.
Colombian National Pleads Guilty to Kidnapping and Murder of DEA Agent Terry WatsonRead the Press Release
ALEXANDRIA, Va. – A Colombian man extradited to the Eastern District of Virginia pleaded guilty today for his involvement in the kidnap and murder of Drug Enforcement Administration (DEA) Special Agent James Terry Watson in Bogotà, Colombia, on June 20, 2013.
Attorney General Eric H. Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, DEA Administrator Michele M. Leonhart and Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS) made the announcement.
“Special Agent Watson gave his life in the service of his country, and we will do everything in our power to honor his sacrifice,” said Attorney General Holder. “This conviction is a critical step forward. But while this action represents the first measure of justice for his kidnapping and murder, it will not be the last. The Department of Justice will not rest until all those involved in this senseless act of violence have been held to account for their crimes. Our nation will never yield in the protection and defense of its citizens. And we will continue to demonstrate that anyone who seeks to harm an American will be found, will be prosecuted, and will be brought to justice.”
Julio Estiven Gracia Ramirez, 31, pleaded guilty before U.S. District Judge Gerald Bruce Lee of the Eastern District of Virginia to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person. Gracia Ramirez faces a maximum penalty of any term of years in prison when he is sentenced on Dec. 5, 2014.
In a statement of facts filed with the plea agreement, Gracia Ramirez admitted that he and his conspirators agreed to conduct a “paseo milionario” or “millionaire’s ride” in which victims who were perceived as wealthy were lured into taxi cabs, kidnapped and then robbed. Gracia Ramirez admitted that he targeted Special Agent Watson and picked him up outside a Bogotà restaurant in his taxi. Soon after, two conspirators entered Gracia Ramirez’s taxi, and one used a stun gun to shock Special Agent Watson and the other stabbed him. Special Agent Watson was able to escape from the taxi, but he later collapsed and died from his injuries.
Six other defendants have been charged in an indictment in the Eastern District of Virginia for their alleged involvement in the murder of Special Agent Watson. Gerardo Figueroa Sepulveda, 39; Omar Fabian Valdes Gualtero, 27; Edgar Javier Bello Murillo, 27; Hector Leonardo Lopez, 34; and Andrés Alvaro Oviedo-Garcia, 22, are each charged with second degree murder, kidnapping and conspiracy to kidnap. Oviedo-Garcia is also charged with assault. Wilson Daniel Peralta-Bocachica, 31, is charged for his alleged efforts to destroy evidence associated with the murder of Special Agent Watson. Trial is set for Jan. 12, 2015.
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case was investigated by the FBI, DEA and DSS, in close cooperation with Colombian authorities and with assistance from INTERPOL and the Justice Department’s Office of International Affairs. The case is being prosecuted by Special Counsel Stacey Luck of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael P. Ben’Ary of the U.S. Attorney’s Office for the Eastern District of Virginia.
The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogotà Metropolitan Police, Bogotà Police Intelligence Body (CIPOL) Unit and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.
Co-owner of Defunct Company Admits Defrauding Service-Disabled Veteran-Owned Small Business ProgramRead the Press Release
KANSAS CITY, KAN. - The co-owner of a defunct Missouri construction company pleaded guilty Wednesday to defrauding a federal program that set aside contracts for businesses owned by service-disabled veterans, U.S. Attorney Barry Grissom said.
Michael J. Parker, 40, Blue Springs, Mo., pleaded guilty to one count of conspiracy to commit fraud against the United States, one count of major program fraud and one count of wire fraud. In his plea, he admitted that he and his father, co-defendant, Warren K. Parker, made false claims in order for their company, Silver Star Construction LLC of Blue Springs, Mo., and Stilwell, Kan., to obtain more than $6.7 million in contracts from the Veterans Administration and more than $748,000 in contracts from the Department of Defense. The contracts were awarded under the Service-Disabled Veteran-Owned Small Business Program.
After an extensive investigation, federal agents determined that in fact Warren Parker never was classified as a service-disabled veteran by the Veterans Administration or the Department of Defense.
Sentencing will be set for a later date. Both parties have agreed to recommend a sentence of 51 months in federal prison and restitution.
Co-defendants include: Warren K. Parker, who was sentenced to 87 months.
Grissom commended the Small Business Administration's Office of Inspector General; the Defense Criminal Investigative Service; the Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division and the General Services Administration's Office of Inspector General; and Assistant U.S. Attorney Tris Hunt for their work on the case.
Mary Parker, who is set for jury trial Oct. 6.
Thomas Whitehead, who is awaiting sentencing.
Silver Star Construction, LLC, which is set for trial Oct. 6.Claysville Man Sentenced for Firearms OffenseRead the Press Release
PITTTSBURGH - A Washington County man has been sentenced in federal court to nine months imprisonment, 12 months supervised release, and forfeiture of firearms on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Charles Merle Watson, 53, of Claysville, Pa.
According to information presented to the court, on Feb. 11, 2011, and again on June 15, 2011, Watson possessed and/or transferred a machine gun at his Washington County home which he had converted from a semi-automatic firearm. Watson can be observed handling, firing, and transferring possession of the firearms on a hidden camera.
Prior to imposing sentence, Judge Bissoon stated that Watson knew his conduct was unlawful due to his employment at a sporting goods store and was conducting an “unlawful side business,” adding that Watson let his enthusiasm cloud his judgment.
Assistant United States Attorney Margaret E. Picking prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives for the investigation leading to the successful prosecution of Watson.
Chattanooga Men Sentenced in Upper East Tennessee for Crack Cocaine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – Ladarius Lebron Blunt, 27, of Chattanooga, Tenn., and Jeremy Jermaine Whatley, 29, also of Chattanooga, Tenn., were sentenced on Sept. 3, 2014, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 188 months and 60 months, respectively, in federal prison. Both Blunt and Whatley were previously convicted of conspiracy to distribute crack cocaine.
Beginning in 2011, law enforcement began investigating a large-scale crack cocaine conspiracy originating out of Chattanooga. As part of the conspiracy, numerous individuals, including Blunt and Whatley, trafficked kilogram quantities of crack cocaine to Johnson City for resale. Private vehicles, taxi cabs, and public transportation were commonly used to transport the drugs. Many of the coconspirators had ties to street gangs based in Chattanooga, including the Rollin’ 60’s Crips and the Woodlawn Crips. Upon arrival in Johnson City, Blunt, Whatley and others would distribute their drugs, return to Chattanooga with their drug sale proceeds, purchase additional drugs, and repeat the cycle.
As part of the investigation, law enforcement conducted a series of controlled drug transactions with Blunt, Whatley and other coconspirators. On two separate occasions, Blunt sold crack cocaine to individuals working on behalf of law enforcement. On two other occasions, Whatley did the same. Subsequent police actions found both Blunt and Whatley to be in possession of crack cocaine with intent to distribute.
One coconspirator remains to be sentenced in Greeneville. Numerous others are being prosecuted in Chattanooga.
This long term investigation was the product of a partnership between the Johnson City, Tennessee Police Department; Chattanooga, Tennessee Police Department; Federal Bureau of investigation; and the Drug Enforcement Administration. Assistant United States Attorney Nick Regalia represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
This case was also a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Charlotte Man Sentenced to 15 Years in Prison on Federal Gun OffenseRead the Press Release
CHARLOTTE, N.C. – On Wednesday, September 3, 2014, U.S. District Judge Robert J. Conrad, Jr. sentenced Reginald Lashawn Lockhart, 30, of Charlotte to serve to 180 months in prison to be followed by five years of supervised release for a federal gun offense, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division and Chief Rodney D. Monroe of the Charlotte Mecklenburg Police Department (CMPD).
According to filed court documents and statements made in court, on September 12, 2012, CMPD police officers received information that Lockhart was in possession of two stolen firearms. Court records indicate that when law enforcement searched Lockhart’s Charlotte residence they found a Smith & Wesson, .40 caliber pistol, which was loaded with 15 rounds. According to court records and court proceedings, law enforcement later determined that the pistol was stolen. Court records show that Lockhart had six prior convictions for robbery with a dangerous weapon and two prior convictions for assault with a deadly weapon inflicting serious injury. Lockhart’s prior convictions prohibit him from carrying a firearm. Lockhart pleaded guilty in April 2013 to possession of a firearm by a convicted felon and he was sentenced as an armed career criminal.
Lockhart has been in federal custody since November 2012. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by ATF and CMPD. The case was prosecuted by Assistant United States Attorney Robert J. Gleason of the U.S. Attorney’s Office in Charlotte.
Charlotte Man Sentenced to 15 Years in Prison on Federal Gun OffenseRead the Press Release
CHARLOTTE, N.C. – On Wednesday, September 3, 2014, U.S. District Judge Robert J. Conrad, Jr. sentenced Reginald Lashawn Lockhart, 30, of Charlotte to serve to 180 months in prison to be followed by five years of supervised release for a federal gun offense, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division and Chief Rodney D. Monroe of the Charlotte Mecklenburg Police Department (CMPD).
According to filed court documents and statements made in court, on September 12, 2012, CMPD police officers received information that Lockhart was in possession of two stolen firearms. Court records indicate that when law enforcement searched Lockhart’s Charlotte residence they found a Smith & Wesson, .40 caliber pistol, which was loaded with 15 rounds. According to court records and court proceedings, law enforcement later determined that the pistol was stolen. Court records show that Lockhart had six prior convictions for robbery with a dangerous weapon and two prior convictions for assault with a deadly weapon inflicting serious injury. Lockhart’s prior convictions prohibit him from carrying a firearm. Lockhart pleaded guilty in April 2013 to possession of a firearm by a convicted felon and he was sentenced as an armed career criminal.
Lockhart has been in federal custody since November 2012. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by ATF and CMPD. The case was prosecuted by Assistant United States Attorney Robert J. Gleason of the U.S. Attorney’s Office in Charlotte.
Career Offender Admits to Possessing a Firearm While Trafficking in HeroinRead the Press Release
PORTLAND, Ore. – Marcelino Lopez-Diaz, 25, of Nayarit, Mexico appeared today before U.S. District Judge Robert E. Jones and entered guilty pleas to possession with the intent to distribute heroin in quantities of 1 kilogram or more and possession of a firearm in furtherance of a drug trafficking crime. The maximum sentence on both charges is life and both carry mandatory minimum sentences of ten and five years respective. The mandatory five years sentence for the firearm charge must run consecutive to the 10 year drug sentence. Lopez-Diaz is scheduled to appear for sentencing on December 11, 2014.
On Novemeber 7, 2012 several members of the Hillsboro Police Department and the Washington County Westside Interagency Narcotics Team (WIN) responded to a residence in Hillsboro, Oregon where Jeremy Mollet was found lying on the floor of a locked bathroom. A spoon and syringe were found nearby. Mollet was transported to Tuality Hospital where he was pronounced dead. The medical examiner noticed fresh puncture marks on Mollet’s foot which were consistent with injections sites. An autopsy report confirmed that Mollet died from the combined toxic effects of heroin and oxycodone.
Agents were able to quickly examine Mollet’s cellular phone. They observed a number of text messages describing his last heroin purchase. After speaking with Mollet’s girlfriend, agents were able to identify the person who last supplied the heroin that resulted in his death. From there, agents conducted an investigation into the chain of distribution. The investigation produced five coconspirators that ended with Lopez-Diaz.
On November 11, 2012, agents executed a search warrant at Lopez-Diaz’ residence. Lopez-Diaz flushed narcotics down the toilet drain as agents entered the residence. During the execution of the search warrant, agents located and seized over two pounds of heroin, two digital scales, packaging materials, approximately $28,000 in cash, and a Beretta 9mm firearm with 5 rounds of ammunition. Lopez-Diaz admitted having prior convictions for delivering controlled substances and that he was selling heroin in order to send money home to his mother in Mexico.
The investigation of the case was led by the Washington County Sheriff’s Office, Drug Enforcement Administration (DEA) through its Portland DEA Drug Task Force, and the Washington County Westside Interagency Narcotics Team (WIN), and Oregon State Medical Examiner.
The case was prosecuted by Assistant U.S. Attorney Kemp Strickland.
Bitcoin Exchangers Plead Guilty in Manhattan Federal Court in Connection with the Sale of Approximately $1 Million in Bitcoins for Use on the Silk Road WebsiteRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ROBERT M. FAIELLA, a/k/a “BTCKing,” an underground Bitcoin exchanger, and CHARLIE SHREM, formerly the Chief Executive Officer and Compliance Officer of a Bitcoin exchange company, both pled guilty today before U.S. District Judge Jed S. Rakoff to operating an unlicensed money transmitting business, through which they knowingly transmitted money intended to facilitate criminal activity – specifically, drug trafficking on “Silk Road,” a black-market website designed to enable its users to buy and sell illegal drugs anonymously and beyond the reach of law enforcement.
Manhattan U.S. Attorney Preet Bharara said: “Robert Faiella and Charlie Shrem opted to travel down a crooked path – running an illegal money transmitting business that catered to criminals bent on trafficking narcotics on the dark web drug site, Silk Road. The approximately $1 million in Bitcoins Faiella and Shrem sold to these outlaws cost them a lot more than they bargained for and bought them today’s convictions.”
According to the Complaint, the Indictment, the Superseding Information unsealed today against SHREM, and statements made in related court proceedings:
From about December 2011 to October 2013, FAIELLA ran an underground Bitcoin exchange on the Silk Road website, a website that served as a sprawling and anonymous black market bazaar where illegal drugs of virtually every variety were bought and sold regularly by the site’s users. Operating under the username “BTCKing,” FAIELLA sold Bitcoins – the only form of payment accepted on Silk Road – to users seeking to buy illegal drugs on the site. FAIELLA never registered his business as a money transmitting business with the U.S. Treasury Department, as required under federal regulations, even though he knew that he was required to do so.
Upon receiving orders for Bitcoins from Silk Road users, FAIELLA filled the orders through a company based in New York, New York (the “Company”). The Company enabled customers to exchange cash for Bitcoins anonymously, that is, without providing any personal identifying information, and it charged a fee for its service. FAIELLA obtained Bitcoins with the Company’s assistance, and then sold the Bitcoins to Silk Road users at a markup.
SHREM was the Chief Executive Officer of the Company, and from about August 2011 until about July 2013, when the Company ceased operating, he was also its Compliance Officer, in charge of ensuring the Company’s compliance with federal anti-money laundering (“AML”) laws. SHREM was also the Vice Chairman of a foundation dedicated to promoting the Bitcoin virtual currency system.
SHREM was fully aware that Silk Road was a drug-trafficking website, and through his communications with FAIELLA, SHREM also knew that FAIELLA was operating a Bitcoin exchange service for Silk Road users. Nevertheless, SHREM knowingly facilitated FAIELLA’s business with the Company in order to maintain FAIELLA’s business as a lucrative source of revenue. SHREM knowingly allowed FAIELLA to use the Company’s services to buy Bitcoins for his Silk Road customers; personally processed FAIELLA’s orders; and gave FAIELLA discounts on his high-volume transactions. Even though it was SHREM’s job to enforce the Company’s AML restrictions and even though the Company had registered with the Treasury Department as a money services business, SHREM failed to file a single suspicious activity report with the U.S. Treasury Department about FAIELLA’s illicit activity, as he was required to do in his role as the Company’s Compliance Officer, and deliberately helped FAIELLA circumvent the Company’s AML restrictions.
Working together, SHREM and FAIELLA exchanged nearly $1 million in cash for Bitcoins for the benefit of Silk Road users, so that the users could, in turn, make illegal purchases on Silk Road.
In late 2012, when the Company stopped accepting cash payments, FAIELLA ceased doing business with the Company and temporarily shut down his illegal Bitcoin exchange service on Silk Road. FAIELLA resumed operating on Silk Road in April 2013 without the Company’s assistance, and continued to exchange tens of thousands of dollars a week in Bitcoins until the Silk Road website was shut down by law enforcement in October 2013.
FAIELLA, 54, of Cape Coral, Florida, pled guilty to one count of operating an unlicensed money transmitting business through which he knowingly transmitted funds intended to be used to promote or support unlawful activity, which carries a maximum sentence of five years in prison. SHREM, 24, of New York, New York, pled guilty to aiding and abetting FAIELLA in the operation of his unlicensed money transmitting business, which also carries a maximum sentence of five years in prison. FAIELLA and SHREM will be sentenced by Judge Rakoff on January 20, 2015, at 4:00 p.m. and 4:30 p.m., respectively. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the DEA’s New York Organized Crime Drug Enforcement Strike Force, which comprises agents and officers of the U.S. Drug Enforcement Administration, the New York City Police Department, Immigration and Customs Enforcement - Homeland Security Investigations, the New York State Police, the U.S. Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Secret Service, the U.S. Marshal Service, New York National Guard, Office of Foreign Assets Control and the New York Department of Taxation and Finance. Mr. Bharara also thanked the FBI’s New York Field Office.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Serrin Turner is in charge of the prosecution, and Assistant United States Attorney Andrew Adams of the Money Laundering and Asset Forfeiture Unit is in charge of the forfeiture aspects of the case.
U.S. v. Charlie Shrem S1 Information
U.S. v. Robert Faiella and Charlie Shrem IndictmentBillings Man Sentenced for Walgreens Drug TheftRead the Press Release
BILLINGS - A 22-year-old Billings man was sentenced today for breaking into Walgreens and stealing hundreds of prescription pills. Travis John Bell was sentencing in connection with his April guilty plea to possession with intent to distribute oxycodone. Bell was sentenced to 48 months in prison followed by 3 years of supervised release. In addition, Bell was ordered to pay $19,997.75 in restitution to Walgreens.
In an offer of proof, Assistant U.S. Attorney Paulette Stewart told the court that on January 17, 2014, Billings Police Department (BPD) officers were dispatched to the Walgreens located at 3333 Grand Avenue in Billings regarding a burglary in progress complaint. BPD dispatch advised the officers that a security company that worked for Walgreens was watching a live feed and could see a male inside the store going back and forth from the pharmacy to the back door.
Officers arrived on scene and observed a red Dodge neon near the back garage door. It appeared that the garage door was damaged. Officers also observed a tow strap, attached to the car and secured to the rolling garage door. BPD observed a male bring a plastic bag of items out of the back door and reenter the building. Later, officers determined that the plastic bag was filled with prescription medications and syringes. BPD officers then watched Bell walk inside the store through a mirror inside the store. A short time later, Bell walked out the front door where he was arrested by the officers. Bell had a hammer, a screwdriver, and seven plastic pill bottles. The bottles contained various prescription drugs, including 136 OxyContin pills.
During the investigation, law enforcement observed damage to the pharmacy window. An officer observed that the Schedule II drug cabinet in the pharmacy was damaged and items were scattered on the floor. A search warrant of Bell's vehicle revealed various tools for the burglary and plastic bag, which contained over 3,000 prescription pills, including over 600 Oxycodone pills.
The case was investigated by the Drug Enforcement Administration (DEA) and the Billings Police Department.
Barren County, Kentucky, Fugitive Sentenced to 156 Months in Prison for Burglary and Possession of Firearms by A Convicted FelonRead the Press Release
Bowling Green, Ky. – A Barren County, Kentucky, convicted felon was sentenced in U.S. District Court yesterday, by Senior District Judge Thomas B. Russell, to 156 months in prison, followed by five years of supervised release, for multiple firearms violations announced David J. Hale, United States Attorney for the Western District of Kentucky.
Jeremy Lee Wilson, age 36, of Glasgow, Kentucky, pleaded guilty on August 6, 2013, to breaking in to the M&B Pawn Shop, located in Glasgow, on November 30, 2012, and to stealing nine firearms from a display case. Wilson pleaded guilty to being a felon in possession of firearms, possession and concealment of stolen firearms and theft of firearms shipped or transported in interstate commerce from a person licensed to deal in firearms. During the course of the burglary, Wilson caused $800 in damage to the M&B Pawn Shop property.
According to an Affidavit attached to the Criminal Complaint, Wilson was stopped by a Kentucky State Police Trooper and Barren County Sheriff’s Deputy on December 1, 2012, while walking on North 31E. A jacket containing the nine stolen firearms was found near-by and eight of the firearms still had the M&B price tags on them.
At the time of his arrest, Wilson was a fugitive, wanted in Tyler, Texas, for the October 1, 2012, theft of four firearms from a Wal-Mart. The Texas conduct was accounted for in the sentence imposed today in Kentucky. Further, Wilson is an armed career criminal with four prior felony convictions from Texas and Arkansas dating back to November 2001.
This case was prosecuted by Assistant United States Attorney Mac Shannon and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Glasgow Police Department, the Barren County Sheriff’s Department and Kentucky State Police.
Bank Robber Gets Five Years PlusRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that David A. Parker, age 53, of the Burlington area, was sentenced today to 63 months in jail by Chief Judge Christina Reiss in United States District Court in Burlington.
On the morning of November 7, 2013, Parker attempted to rob the TD Bank in Burlington, and that afternoon robbed the Peoples United Bank in South Burlington. He was arrested by the South Burlington Police Department minutes after the robbery. Arresting officers also recovered most of the stolen money. Indicted by a federal grand jury for both offenses on November 14, 2013, on April 8, 2014 Parker pleaded guilty to the Peoples United robbery
At sentencing today before Chief Judge Reiss, Parker, through his attorney, Federal Public Defender Michael Desautels, requested a sentence of 40 months in jail. Parker personally apologized for his conduct. Mr. Desautels urged that Parker suffered from mental health problems and alcoholism. On behalf of the United States, Assistant U.S. Attorney William Darrow sought a sentence toward the high end of the 63 - 78 month Sentencing Guideline range. Darrow emphasized Parker=s 51 criminal convictions in the State of Vermont, and the fact that he repeatedly had been provided with substance abuse treatment programs by multiple Vermont health care providers.
Imposing the 63 month term, Judge Reiss stated that she would have imposed a higher sentence, but for the mental health issues. Judge Reiss also ordered Parker to pay the victim bank the $109 that was not recovered at his arrest, and imposed a three-year term of supervised release.
Parker has been in the custody of the U.S. Marshals Service since November 8, 2013. The United States Attorney thanked the Federal Bureau of Investigation, and the South Burlington Vermont Police Department, for investigating the case.
Attorney General Holder Announces Next Steps to Address Concerns Regarding the City of Ferguson and St. Louis County Police DepartmentsRead the Press Release
Attorney General Eric Holder announced today that the Justice Department has launched two initiatives to address concerns about police services in the city of Ferguson and in St. Louis County, Missouri. First, in addition to the ongoing criminal civil rights investigation, the Civil Rights Division has opened a civil pattern or practice investigation into allegations of unlawful policing by the City of Ferguson Police Department (FPD). Second, the Attorney General announced that the Community Oriented Policing Services (COPS) Office has launched a Collaborative Reform Initiative with the St. Louis County Police Department (SLCPD).
“The Department of Justice is working across the nation to ensure that the criminal justice system is fair, constitutional and free of bias,” said Attorney General Holder. “The interventions in Missouri are an important part of that commitment. While there is much work left to do, we feel confident that there are solutions to any issues we find and that community trust in law enforcement can be restored and maintained. Ferguson and St. Louis County are not the first places that we have become engaged to ensure fair and equitable policing and they will not be the last. The Department of Justice will continue to work tirelessly to ensure that the Constitution has meaning for all communities.”
The pattern or practice investigation will look at whether officers of the Ferguson Police Department have engaged in systemic violations of the Constitution or federal law. The investigation will focus on the Ferguson Police Department’s use of force, including deadly force; stops, searches and arrests; discriminatory policing; and treatment of detainees inside Ferguson’s city jail by Ferguson police officers. The department will consider all relevant information, particularly the efforts that FPD has undertaken to ensure compliance with federal law, and the experiences and views of the community.
Over the past five fiscal years, the Civil Rights Division has opened over 20 pattern or practice investigations into police departments across the country, which is more than twice as many as were opened in the previous five fiscal years. The division is enforcing 14 agreements to reform law enforcement practices at agencies both large and small. These agreements have already resulted in tangible changes in these communities by ensuring constitutional policing, enhancing public safety and making the job of delivering police services safer and more effective.
The investigation is being conducted by attorneys and staff from Civil Rights Division. They will be assisted by experienced law enforcement experts. The department encourages anyone wishing to provide relevant information to contact the department at 1-855-856-2132, or via email at [email protected] .
The COPS Collaborative Reform Technical Assistance process with the SLCPD is a voluntary process that will include an open, independent and objective assessment of key operational areas of the police department, such as training, use of force, handling mass demonstrations, stops, searches, arrests, and fair and impartial policing. The assessment will include the SLCPD police academy which trains officers for many police departments in the region, including the FPD. The findings of this assessment, and recommendations to address any deficiencies that it uncovers, will be provided in a public report and shared with the community. Additionally, SLCPD Chief Jon Belmar has requested that COPS conduct an after action report on the SLCPD’s response to the protests following the shooting of Michael Brown.
The Collaborative Reform process is an initiative in which the COPS Office, in partnership with a designated technical assistance provider and subject matter experts, works with a law enforcement agency to assess an issue that affects police and community relationships. Grounded in the principles of constitutional policing and procedural justice, it is a means to organizational transformation through an analysis of policies, practices, training, and tactics around a specific issue that can jeopardize an agency’s legitimacy within its community. It is not a short term solution for a serious deficiency, but a long term strategy that identifies the issues within an agency that affect public trust and offers recommendations on how to improve the issue and enhance the relationship between the police and the community.
The Collaborative Reform process was initially launched in 2011. The Las Vegas Metropolitan Police Department was the first agency to participate and complete the process, which resulted in the adoption of over 75 recommendations regarding the use of force. The COPS Office is currently working with the Philadelphia and Spokane police departments with this process.
“Today we are launching a comprehensive review of the Ferguson Police Department to assess whether police practices are constitutional and fair in Ferguson,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “We are encouraged by the pledge of cooperation from Mayor Knowles and Chief Jackson, and we look forward to working with them as our process moves forward.”
“The recent disturbances in Ferguson have revealed significant mistrust between the community and police agencies throughout the county, including the St. Louis County Police Department,” said COPS Director Davis. “The county has expressed a strong desire to take steps to create a relationship of trust and to ensure fairness and equity in its policing practices, and I applaud St. Louis County Police Chief Jon Belmar for seeking technical assistance and agreeing to the Collaborative Reform process. The advancements that will be made through this effort will not only benefit the St. Louis county police department; they will serve as a model for all police agencies in the region and throughout the nation.”
The department is also conducting in a thorough, fair and independent criminal investigation into the circumstances of the fatal shooting of Michael Brown on in Ferguson on Aug. 9, 2014. Although the department is working cooperatively with the local investigators, the federal investigation supplements, but does not supplant, the St. Louis County Police Department’s investigation into the shooting incident. The initiatives announced today are also separate from the ongoing current criminal investigations related to the death of Michael Brown.
The Civil Rights Division has an ongoing, separate investigation of the St. Louis County Juvenile Court to determine whether it engages in patterns or practices of violations of young people’s rights. The section is assessing whether there are violations of due process, equal protection or access to counsel. Anyone wishing to provide information related to that investigation can email the department at [email protected] or call toll free 855-228-2151.
The Justice Department has taken similar steps involving a variety of state and local law enforcement agencies, both large and small, in jurisdictions throughout the United States using its authority under the Violent Crime Control and Law Enforcement Act of 1994, the Omnibus Crime Control and Safe Streets Act of 1968, and Title VI of the Civil Rights Act of 1964. Under Attorney General Holder’s leadership, more investigations have resulted in comprehensive, court-overseen agreements to fundamentally change the law enforcement agency’s police practices than in any other five-year period in the department’s history.
Artesia Man Sentenced to Nineteen Years for Federal Firearms and Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Bryan O’Keef Kimble, 30, of Artesia, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 230 months in prison for his conviction on firearms and methamphetamine trafficking charges. Kimble will be on supervised release for four years after completing his prison sentence.
U.S. Attorney Damon P. Martinez said that Kimble was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
“This is a great example of our cooperative enforcement efforts with our state and local partners. Our community is much safer with this repeat offender behind bars,” stated Special Agent in Charge Thomas Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives,
Kimble was transferred from state custody to federal custody in March 2013 to face federal charges in a criminal complaint alleging that law enforcement authorities seized firearms, methamphetamine and other drugs from Kimble on two separate occasions in Aug. and Sept. 2012. In Aug. 2013, Kimble was indicted and charged with two counts of being a felon in possession of a firearm and ammunition (Counts 1 and 4); two counts of carrying a firearm in relation to a drug trafficking crime (Counts 2 and 5); two counts of possession of methamphetamine with intent to distribute (Counts 3 and 7); and one count of possession of a firearm with an obliterated serial number (Count 6).
Kimble was prohibited from possessing firearms or ammunition in 2012 because he previously had been convicted of the following felony offenses: possession of a controlled substance in the 3rd Judicial District Court for the State of New Mexico (Doña Ana County); and being a felon in possession of a firearm and possession of a controlled substance with intent to distribute in the U.S. District Court for the District of New Mexico.
According to the criminal complaint, on Aug. 12, 2012, the Doña Ana County Sheriff’s Office arrested Kimble in Las Cruces on local charges after a deputy found a loaded handgun and methamphetamine in Kimble’s possession. During a search of Kimble’s vehicle, deputies found another firearm, more methamphetamine, marijuana and heroin. On Sept. 14, 2012, the Las Cruces Police Department and U.S. Marshals Service arrested Kimble in Las Cruces on an outstanding state warrant. At the time of this second arrest, Kimble was in possession of methamphetamine, approximately 40 pills, and $4,725 in cash; a 9 mm pistol with an obliterated serial number was later found in Kimble’s vehicle.
On Feb. 5, 2014, Kimble entered a guilty plea to all but Count 5 of the seven-count indictment. Subsequently, Kimble pled guilty to state offenses arising out of the two incidents leading to his federal charges in the 3rd Judicial District Court for the State of New Mexico and is awaiting sentencing in his state case.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Dona Ana County Sheriff’s Office, the Las Cruces Police Department, the Las Cruces office of the U.S. Marshals Service and the 3rd Judicial District Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.