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Monday 14 July 2014
Former University of Virginia Dean Sentenced on Child Pornography ChargesRead the Press Release
A Crozet, Virginia man who previously pleaded guilty to child pornography charges was sentenced today in the U.S. District Court for the Western District of Virginia in Charlottesville for distribution and possession of child pornography.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Timothy J. Heaphy for the Western District of Virginia and Special Agent in Charge Adam S. Lee of the FBI’s Richmond Field Office made the announcement.
Michael G. Morris, who used the screen name “funshooter2006,” age 50, of Crozet, Virginia was indicted in 2013 and pleaded guilty on April 21, 2014 to two counts of distributing or receiving images of child pornography and one count of possessing child pornography. During the offenses charged, Morris was employed as an associate dean at the University of Virginia’s McIntyre School of Commerce. Morris was sentenced today before U.S. District Judge Norman K. Moon to 106 months in prison followed by 20 years of supervised release.
“Michael Morris was an associate dean at one of our country’s top universities, but instead of inspiring young minds academically, he was sharing and viewing pornographic images of young children,” said Assistant Attorney General Caldwell. “Today’s sentence demonstrates that those who trade and possess child pornography, no matter what positions of authority they may hold, will face the consequences for fueling an industry that causes immense damage to children.”
“Each and every time defendants like Mr. Morris download and share images depicting child pornography the children in those images suffer re-victimization,” U.S. Attorney Timothy J. Heaphy said today. “The Department will continue to use all available resources to seek out those who trade in this lurid material and bring them to justice.”
“The Richmond-based Child Exploitation Task Force will pursue and bring to justice anyone who produces, distributes, or possesses child pornography,” said Special Agent Lee. “The Morris case is an example of the FBI’s commitment to Virginia’s communities to keep our kids safe. I would like to thank the United States Attorney’s Office for achieving a positive conclusion to this case, the Charlottesville Police Department for their commitment to the Task Force, and the Task Force officer and FBI agent who led the case for their outstanding investigative work.”
According to evidence presented during the plea hearing and in court documents, a law enforcement officer, acting in an undercover capacity, successfully downloaded videos depicting minors engaged in sexually explicit conduct that Morris had made available to him on a publicly available file-sharing site on Jan. 6, 2012 and March 19, 2013. Morris also admitted that on Nov. 6, 2013, he possessed images or videos depicting prepubescent minors who the defendant knew had not attained 12 years of age. Investigators recovered computers and other items that contained child pornography during a search of Morris’s home.
The case was investigated by the FBI, with the assistance of the Charlottesville Police Department and the Department of Justice’s High Technology Investigative Unit. The case was prosecuted by Trial Attorney Herbrina Sanders of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Nancy Healey of the Western District of Virginia.Former University of Virginia Dean Sentenced on Child Pornography ChargesRead the Press Release
WASHINGTON – A Crozet, Virginia man who previously pleaded guilty to child pornography charges was sentenced today in the U.S. District Court for the Western District of Virginia in Charlottesville for distribution and possession of child pornography.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Timothy J. Heaphy for the Western District of Virginia and Special Agent in Charge Adam S. Lee of the FBI’s Richmond Field Office made the announcement.
Michael G. Morris, who used the screen name “funshooter2006,” age 50, of Crozet, Virginia was indicted in 2013 and pleaded guilty on April 21, 2014 to two counts of distributing or receiving images of child pornography and one count of possessing child pornography. During the offenses charged, Morris was employed as an associate dean at the University of Virginia’s McIntyre School of Commerce. Morris was sentenced today before U.S. District Judge Norman K. Moon to 106 months in prison followed by 20 years of supervised release.
“Michael Morris was an associate dean at one of our country’s top universities, but instead of inspiring young minds academically, he was sharing and viewing pornographic images of young children,” said Assistant Attorney General Caldwell. “Today’s sentence demonstrates that those who trade and possess child pornography, no matter what positions of authority they may hold, will face the consequences for fueling an industry that causes immense damage to children.”
“Each and every time defendants like Mr. Morris download and share images depicting child pornography the children in those images suffer re-victimization,” U.S. Attorney Timothy J. Heaphy said today. “The Department will continue to use all available resources to seek out those who trade in this lurid material and bring them to justice.”
“The Richmond-based Child Exploitation Task Force will pursue and bring to justice anyone who produces, distributes, or possesses child pornography,” said Special Agent Lee. “The Morris case is an example of the FBI’s commitment to Virginia’s communities to keep our kids safe. I would like to thank the United States Attorney’s Office for achieving a positive conclusion to this case, the Charlottesville Police Department for their commitment to the Task Force, and the Task Force officer and FBI agent who led the case for their outstanding investigative work.”
According to evidence presented during the plea hearing and in court documents, a law enforcement officer, acting in an undercover capacity, successfully downloaded videos depicting minors engaged in sexually explicit conduct that Morris had made available to him on a publicly available file-sharing site on Jan. 6, 2012 and March 19, 2013. Morris also admitted that on Nov. 6, 2013, he possessed images or videos depicting prepubescent minors who the defendant knew had not attained 12 years of age. Investigators recovered computers and other items that contained child pornography during a search of Morris’s home.
The case was investigated by the FBI, with the assistance of the Charlottesville Police Department and the Department of Justice’s High Technology Investigative Unit. The case was prosecuted by Trial Attorney Herbrina Sanders of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Nancy Healey of the Western District of Virginia.
Former U.S. Postal Service Employee from Silver City Sentenced to Probation for Falsefying Postal RecordsRead the Press Release
ALBUQUERQUE – Gabriel Arsola, 40, of Silver City, N.M., was sentenced today to three years of probation for making false and fictitious entries on U.S. Postal Service forms. Arsola also was ordered to pay $10,834.68 in restitution to the U.S. Postal Service.
Arsola was indicted in Dec. 2013, and charged with 56 counts of making false entries and reports on U.S. Postal Service forms in order to conceal a scheme to defraud the U.S. Postal Service. According to the indictment, between Aug. 20, 2012 and Dec. 7, 2012, Arsola made false and fictitious entries on the forms regarding the value of the postage stamps and bubble-wrap sold at the Silver City Post Office to understate the amount of funds received by the Post Office. During that time period, Arsola was employed as a sales and service associate at the Silver City Post Office.
On April 15, 2014, Arsola pled guilty to Count 1 of the indictment and admitted to the full scope of criminal conduct charged in the 56-count indictment as well as other criminal conduct. In his plea agreement, Arsola admitted that between July 2011 and Dec. 2012, he falsified postal records to conceal that he was stealing money from the U.S. Postal Service. Arsola admitted selling full books of stamps to customers but only scanning single stamps and recording the sale of single stamp transactions. In his plea agreement, Arsola agreed to pay restitution in the amount of $10,834.68 to the U.S. Postal Service.
This case was investigated by the U.S. Postal Service, Office of Inspector General, and was prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Former Plymouth Police Officer Sentenced for Using Excessive Force and LyingRead the Press Release
BOSTON – A former Plymouth police sergeant was sentenced today for using excessive force on an arrestee and covering up his actions by falsifying police reports related to the incident.
Shawn Couglin, 47, was sentenced to one year and one day in prison, one year of supervised release, and a fine of $7,500. In February 2014, Coughlin was convicted following a jury trial of deprivation of constitutional rights under color of law and falsifying a record to impede a federal investigation.
On November 19, 2011, at the Plymouth police station, Coughlin assaulted an arrestee who was in a holding cell and handcuffed behind his back. Coughlin struck the arrestee in the head and kneed him in the body, resulting in bodily injury. Evidence at trial also established that Coughlin falsified the official police incident reports regarding the incident.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by S. Theodore Merritt and Kristina E. Barclay of Ortiz’s Civil Rights Enforcement Team.
Former Official of Maryland Department of Veterans Affairs Admits to Fraudulently Obtaining over $1.4 Million in BenefitsRead the Press Release
Eight Other Veterans Have Admitted to Paying U.S. Army Veteran David Clark
Cash to Fraudulently Obtain Veteran Benefits
Baltimore, Maryland – U.S. Army veteran David Clark, age 67, of Hydes, Maryland, the former Deputy Chief of Veterans Claims in the Maryland Department of Veterans Affairs, pleaded guilty today to extortion in connection with a scheme to fraudulently obtain over $1.4 million in veterans benefits.The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kim R. Lampkins of the Department of Veterans Affairs Office of Inspector General.
In January 2011, Clark retired from the Maryland Department of Veterans Affairs (MDVA) as the Deputy Chief for Veterans Claims. Clark’s duties included submitting claims and documentation on behalf of veterans in Maryland who appointed the MDVA to represent them in obtaining federal benefits from the Department of Veterans Affairs (VA). Clark also submitted documents to the Maryland State Department of Assessments and Taxation (SDAT) in support of veterans’ applications for property tax waivers.
According to his plea agreement, while serving at Deputy Chief of Claims, Clark fraudulently obtained VA compensation for himself and at least 17 others, by submitting false documents to the VA purporting to show that the claimants had been diagnosed with diabetes, and in some cases that the claimant had served in Vietnam when they had not. The claimants paid Clark half of the retroactive lump sum payment they received in cash, or some other amount of cash. These payments to Clark were made in unmarked envelopes, at MDVA offices in Bel Air, Maryland; at the Fallon Federal Building in Baltimore; and at other locations.
In support of these claims, Clark submitted fake letters from doctors purportedly treating the veterans, which falsely stated that the claimants suffered from Type II diabetes. Clark used the names and addresses of real doctors who were unaware of his conduct. Each letter stated that the diagnosis of Type II diabetes had been made a year or more prior to the date of the letter, which entitled each claimant to a retroactive lump-sum payment. The letters also stated that the claimants were currently taking insulin, which increased the amount of compensation the VA paid the claimant.
Clark created counterfeit versions of a Defense Department form for himself and five others, which falsely stated that each had served in Vietnam. These forms also falsely stated that these individuals had received various awards and decorations for the Vietnam service, including that Clark himself had been awarded the Purple Heart Medal. These documents were submitted to the VA to provide false evidence that they qualified for compensation benefits for diabetes.
Clark also submitted false certifications to the SDAT, on behalf of claimants that owned homes in Maryland, that the filers were entitled to a property tax waiver due to a service-connected disability.
The total loss to the government caused by false submissions to the VA is $1,151,219 and the loss from the property tax evasion is $255,555, for a total loss of $1,407,134.
Clark faces a maximum sentence of 20 years in prison and a $250,000 fine. Clark has agreed to forfeit $1,407,134. U.S. District Judge Catherine C. Blake scheduled sentencing for November 17, 2014 at 9:15 a.m.
Eight other veterans have previously pleaded guilty to paying Clark cash to submit false documentation to receive VA benefits:
John Bratcher, age 56, of Conowingo, Maryland, a veteran of the U.S. Air Force;
Richard Genco, age 71, of Baltimore, a veteran of the U.S. Navy;
Paul Heard, age 65, of Baltimore, a veteran of the U.S. Navy;
George Kulla, age 68, of Dillwyn, Virginia, a veteran of the U.S. Army;
Sandra Tyree, age 65, of Baltimore, a veteran of the U.S. Air Force and former employee
of the U.S. Department of Veterans Affairs;
Kenneth Webster, age 68, of Pasadena, Maryland, a veteran of the U.S. Marine Corps and a former police officer with AMTRAK;
Raymond Sadler, age 63, of Middle River, Maryland, a veteran of the U.S. Marine Corps; and Kenneth Williams, age 65, of Baltimore, a veteran of the U.S. Marine Corps.Today’s announcement is part of efforts underway by President Obama=s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys= offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the VA Office of Inspector General for its work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Leo J. Wise, who is prosecuting the case.
Former Milledgeville Credit Union Employee Sentenced for EmbezzlmentRead the Press Release
ROCKFORD — A former employee of Milledgeville Community Credit Union was sentenced by U.S. District Judge Frederick J. Kapala for embezzling money from Milledgeville Community Credit Union, in Milledgeville, Ill. KIMBERLY KENT, 53, who was also a former Treasurer of Wysox Township, was sentenced to 8 months in prison, to be followed by 2 years of supervised release requiring her to serve the first 6 months of supervision under home confinement, and a $5,000 fine. Kent was also ordered to pay restitution in the amount of $10,176.72 to Milledgeville Community Credit Union and $5,278.75 to Wysox Township, in addition to restitution in the amount of $231,823.15 that Kent already paid. Restitution included investigative costs incurred by the Credit Union and Township.
Kent pleaded guilty to the charge on February 24, 2014. According to Kent’s written plea agreement, from October 2005 through February 2012, Kent embezzled approximately $219,600 from Milledgeville Community Credit Union, where she was the manager and responsible for supervising other employees. Kent was also responsible for her own cash drawer and for handling various transactions on accounts, including the deposit and withdrawal of funds to and from customers’ accounts. As stated in the plea agreement, to conceal her embezzlement, Kent created fictitious loans using the names of family members and fictitious certificates of deposit. In 2009, Kent was elected treasurer of Wysox Township. Kent admitted that in August 2010, in her capacity as treasurer of Wysox Township, she used funds from Wysox Township’s account at Milledgeville Community Credit Union to cover her embezzlement. Kent used the money she embezzled for personal purposes. The deposits of the credit union were insured by the National Credit Union Administration Board.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation.
The government was represented by Assistant U.S. Attorney Scott R. Paccagnini.
Former Chief Operating Officer and Co-owner of Schuylkill Products Sentenced in Largest Disadvantaged Business Enterprise Fraud in Nation's HistoryRead the Press Release
Ernest G. Fink, Jr., 68, of Orwigsburg, Pennsylvania, the former Chief Operating Officer and co-owner of Schuylkill Products Inc., was sentenced in federal court in Harrisburg, Pennsylvania, today to 51 months’ imprisonment and ordered to pay fines totaling $25,100 for his role in a massive conspiracy to defraud the Disadvantage Enterprise (DBE) program, announced Peter Smith, U.S. Attorney for the Middle District of Pennsylvania. Senior U.S. District Court Judge Sylvia H. Rambo directed that Fink report to prison no later than September 8, 2014.
In handing down the sentence, Judge Rambo stated “DBE fraud is pervasive in the construction industry and persons so inclined to commit the same kind of fraud need to be aware that they face serious consequences from DBE fraud.”
According to the U.S. Department of Transportation (USDOT), this scheme, which lasted for over 15 years and involved over $136 million in government contracts in Pennsylvania alone, is the largest reported Disadvantaged Business Enterprise (DBE) fraud in the nation’s history.
On August 16, 2010, Fink pleaded guilty to conspiracy. Sentencing was deferred pending the resolution of the case against Joseph W. Nagle, SPI’s former president and co-owner.
In April 2012, after a four-week jury trial, a federal jury found Nagle guilty on 26 charges in the indictment, including conspiracy to defraud the USDOT and to commit wire and mail fraud, seven counts of wire fraud, six counts of mail fraud, conspiracy to commit money laundering and 11 counts of money laundering.
On June 30, 2014, Nagle was sentenced to 84 months imprisonment and ordered to pay fines totaling $27,600.
Fink was Vice-President, Chief Operating Officer and co- owner of Schuylkill Products Inc. (SPI) and its wholly-owned subsidiary CDS Engineers Inc. (CDS), until April 2009 when SPI was sold. SPI, based in Cressona, Pennsylvania, manufactured concrete bridge beams used on highway construction projects in Pennsylvania and surrounding states. CDS was SPI’s erection division and installed SPI’s bridge beams as well as other suppliers’ products on highways in Pennsylvania and surrounding states. The conspiracy defrauded USDOT, the Pennsylvania Department of Transportation (PennDOT) and the Southeastern Pennsylvania Transportation Authority (SEPTA) in connection with the federal government’s DBE program.
USDOT provides billions of dollars a year to states and municipalities for the construction and maintenance of highways and mass transit systems on the condition that small businesses, owned and operated by disadvantaged individuals, receive a fair share of these federal funds. In Pennsylvania, PennDOT and SEPTA receive these funds and requires contractors to award a percentage of their subcontracts to eligible DBE’s.
The USDOT Office of Inspector General has cautioned prime contractors and subcontractors not to engage in fraudulent DBE activity and encouraged them to report any suspected DBE fraud by contacting www.oig.dot.gov/hotline.
Fink and his co- conspirators executed the scheme by using a small Connecticut highway construction firm known as Marikina Construction Corporation as a front company to obtain these lucrative government contracts.
Marikina was owned by Romeo P. Cruz of West Haven, Connecticut, a naturalized American citizen born in the Philippines. Marikina was certified by PennDOT and SEPTA as a DBE. Although Marikina received the DBE contracts on paper, all the work was performed by SPI and CDS personnel, and SPI and CDS received all the profits. In exchange for letting SPI and CDS use its name, Marikina was paid a small fixed-fee, set by SPI.
SPI and CDS personnel pretended to be Marikina employees by using Marikina business cards, email addresses, stationery, and signature stamps, as well as using magnetic placards and decals bearing the Marikina logo to cover up SPI and CDS logos on SPI and CDS vehicles.
Earlier this year, three other former executives associated with SPI, CDS and Marikina were sentenced for their roles in the scheme.
Romeo P. Cruz, the former owner of Marikina, was sentenced to 33 months’ imprisonment, must pay $119 million in restitution and serve two years’ supervised release.
Timothy G. Hubler, of Ashland, Pennsylvania, CDS’ former Vice-President in charge of field operations, was sentenced to 33 months’ imprisonment, pay $119 million in restitution and serve two years’ supervised release.
Dennis F. Campbell, of Orwigsburg, Pennsylvania, SPI’s former Vice-President in charge of sales and marketing was sentenced to 24 months’ imprisonment, $119 million in restitution and serve two years’ supervised release.
The investigation was conducted by the FBI, the U.S. Department of Transportation Inspector General’s Office, the U.S. Department of Labor Inspector General’s Office, and the Criminal Investigation Division of the IRS. Senior Litigation Counsel Bruce Brandler handled the prosecution.
Former Bank Employee in Neosho CountySentenced for Embezzling More Than $278,000Read the Press Release
WICHITA, KAN. - A former employee of a bank in Neosho County was sentenced Monday to a year and a day in federal prison for embezzling more than $278,000 from the bank and two customers, U.S. Attorney Barry Grissom said.
Sherrie Landell, 42, Erie, Kan., pleaded guilty to one count of embezzlement by a bank employee. In her plea, she admitted that from September 2007 to May 2013 she embezzled from Exchange State Bank.
Landell worked in the bank’s branch in St. Paul, Kan. She was responsible for maintaining the bank’s general ledger account and an account designated for accounts receivable on certificates of deposit. Money she stole included interest due on certificates of deposit. She fraudulently altered the bank’s records to conceal the crime. The shortage was discovered during a bank regulatory exam and subsequent audit by an independent accounting firm in 2013.
Grissom commended the U.S. Secret Service, the Federal Deposit Insurance Corporation and Assistant U.S. Attorney Aaron Smith for their work on the case.
Flora, Illinois, Man Sentenced to 24 Months for Being A Convicted Felon in Possession of A FirearmRead the Press Release
Follow @SDILNewsA Clay County man was sentenced on July 10, 2014, to federal prison on gun charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Leroy O’Ryan, 67, of Flora, Illinois, was sentenced to 24 months in federal prison, to be followed by two years of supervised release following his imprisonment, and fined $2,000. O’Ryan had previously pleaded guilty to a one count federal indictment. That Indictment charged that on August 12, 2013, O’Ryan, who had a previous felony conviction for Aggravated Battery, knowingly possessed a Bushmaster, Carbon 15 model, .223 caliber rifle, and a Ruger, P85MKII, 9mm semi-automatic pistol. O’Ryan sold the firearms to an undercover officer and a confidential informant working for law enforcement.
The investigation in this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The case is being handled by Assistant United States Attorney George Norwood.
FBI and Crafton Police Department Seek Public’s Assistance to Identify Dollar Bank RobberRead the Press Release
The Federal Bureau of Investigation (FBI) Pittsburgh Division and the Crafton Police Department are seeking the public’s assistance in identifying the unknown male responsible for robbing the Dollar Bank, Crafton Office, located at 45 Walsh Road, Pittsburgh (Crafton), Pennsylvania, 15205, on Monday, July 14, 2014, at approximately 3:45 p.m.
The robber is described as follows:
• Sex: Male
• Race: Black
• Height: Approximately 5’6” to 6’ tall
• Build: Medium buildBank surveillance photograph from the Dollar Bank, Crafton Office, 45 Walsh Road, Pittsburgh
(Crafton), Pennsylvania, taken on Monday, July 14, 2014:Anyone with information regarding this robbery should contact the FBI at telephone number (412) 432-4000. To view other photographs of bank robbers law enforcement is seeking to identify please visit https://bankrobbers.fbi.gov.
Essex County, N.J., Man Convicted of Brandishing Weapon During CarjackingRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey man who previously admitted his role in an armed carjacking in Little Falls, New Jersey, was convicted today for brandishing a shotgun while committing that crime, U.S. Attorney Paul J. Fishman announced.
Ivan Lee, 26, of Newark, was found guilty of brandishing a firearm in furtherance of a crime of violence following a one-week trial before U.S. District Judge Susan D. Wigenton in Newark federal court. The jury deliberated three hours before returning its verdict.
According to documents in this case and the evidence at trial:
Oct. 30, 2011, Lee and Hanza Darby, 25, of Newark, were in the Little Falls area when they spotted a parked 2008 BMW 335 with passengers inside. Darby and Lee – who brandished a shotgun – approached the car and ordered the occupants out of the vehicle at gunpoint. Darby and Lee then took the car and fled the area. Law enforcement officers recovered the car in Newark on Nov. 7, 2011. Darby was standing next to it at the time. Lee previously pleaded guilty to the carjacking count and Darby has previously pleaded guilty carjacking and brandishing a weapon in furtherance of a crime of violence. Darby is awaiting sentencing.
The carjacking charge carries a maximum potential penalty of 15 years in prison. The firearm charge carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. Each of the two counts also carries a maximum $250,000 fine. Sentencing for Lee is scheduled for Oct. 21, 2014.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, officers of the Little Falls Police Department, under the direction of Chief John Dmuchowski; the N.J. State Police, under the direction of Col. Rick Fuentes; and the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorney Cari Fais and Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Mark Berman Esq., of River Edge, New JerseyEl Paso Man Sentenced to Federal Prison for Production of Child PornographyRead the Press Release
In El Paso today, 48-year-old Tomas Steven Quinones was sentenced to 225 months in federal prison followed by ten years of supervised release for production of child pornography announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Special Agent in Charge Dennis Ulrich.
On August 29, 2013, HSI agents executed a search warrant at the defendant’s residence and seized over 90 assorted computers, accessories and other miscellaneous items including laptop computers, desktop computers, computer hard drives, thumb drives, memory sticks, flash drives, CDs, DVDs and VHS tapes. A subsequent forensics examination of the seized items revealed the presence of approximately 25,000 images of child pornography.
On May 7, 2014, Quinones pleaded guilty to production of child pornography. By pleading guilty, Quinones admitted to producing a video in December 2010 in which he knowingly persuaded and enticed two minors to take part in sexually explicit conduct for the purpose of producing a video depiction of such conduct. Quinones is seen and heard throughout the video instructing the children on how to have sex.
“This 18-year sentence sends a clear message that those who exploit children in any way will face serious consequences,” said Special Agent in Charge, Dennis Ulrich, HSI El Paso. “Preventing and investigating crimes against children is a high priority for HSI. We will continue to dedicate law enforcement resources to identify and bring to justice child predators who traumatize and victimize children.”
Assistant United States Attorney Rifian Newaz prosecuted this case on behalf of the Government.
Edgewater Teacher Arrested for Producing and Distributing Child PornographyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the filing of a criminal complaint charging Matthew C. Graziotti (42, Edgewater) with production, distribution, receipt and possession of child pornography. If convicted, Graziotti faces a mandatory minimum penalty of 15 years in federal prison, up to 30 years for the production charge. For the receipt and distribution charges he faces a mandatory minimum of five years, up to 20 years for each. The maximum penalty for the possession charge is 10 years in federal prison. Graziotti made his initial appearance in federal court today and was detained pending a preliminary hearing on July 24, 2014 at 10:00 a.m., before U.S. Magistrate Thomas B. Smith.
According to the criminal complaint, Graziotti distributed 141 images and 6 videos depicting the sexual abuse and exploitation of children to an FBI agent, who was acting in an undercover capacity. During the execution of a search warrant earlier today, agents located thousands of child pornography images on Graziotti’s computer. One folder on the computer was named “personally known.” The folder contained 41 subfolders titled with different boys’ names. In one of the subfolders, agents located a picture of Graziotti sexually abusing a prepubescent boy. The picture was produced with a digital camera that agents found in Graziotti’s residence. The investigation revealed that Graziotti teaches elementary school in South Daytona, and is director of the school’s summer day camp program. He formerly worked as a youth pastor at a church in Edgewater.
A criminal complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Edgewater Police Department and the Volusia County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Karen L. Gable.
Anyone with additional information about potential victims may contact the FBI – Daytona Beach Resident Agency at 386-252-0463.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Dubuque Gas Station Altercation Leads to Federal Prison SentenceRead the Press Release
A man who threatened a Dubuque woman with a gun after she refused to assist him in committing food stamp fraud at a Dubuque gas station was sentenced today to just under 5 years in federal prison.
Billy Evans, 23, from Milwaukee, Wisconsin, received the prison term after a April 15, 2014 guilty plea to possession of a firearm and ammunition as a felon.
According to court records and information disclosed at the sentencing hearing, Evans arrived in Dubuque from Wisconsin on January 16, 2014. Upon his arrival in Dubuque, Evans walked to a gas station and attempted to persuade a woman at the gas station to use Evans’s food stamp card to purchase her items, and to give Evans her cash. When the woman refused, Evans yelled at the woman while lifting the side of his jacket to show her that he was carrying a handgun in his waistband. The altercation was captured by the store’s surveillance camera.
A second confrontation occurred after the woman left the gas station, prompting the woman to call 911. Police arrived and approached Evans as he walked away from the gas station. Upon seeing the officers, Evans fled on foot. The foot pursuit went several blocks, through backyards. While he was running from the police, Evans discarded a loaded .25 caliber pistol, which officers found following the chase. Evans was a felon at the time, having been convicted in Wisconsin of Operating a Vehicle without Consent and Attempted Armed Robbery.
Evans was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Evans was sentenced to 57 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Evans is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Justin Lightfoot and investigated by the Dubuque Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/ login.pl. The case file number is 14-CR-1007.
Corona Woman Who Ran High-End Denim Jean Company Indicted for Defrauding Investors While on BondRead the Press Release
LOS ANGELES – A Corona woman, who is already charged with a $15 million bank fraud and bankruptcy fraud, was indicted on Friday on new charges. Carolyn Marie Jones, 51, of Corona, who was the Chief Executive Officer of a high-end denim jean company, was charged in an indictment returned by the grand jury late Friday afternoon.
According to the seven-count indictment returned on Friday, which charges wire fraud and contempt, Jones defrauded victims in an investment fraud scheme. According to the indictment, Jones convinced investors to invest with her by representing that she was operating a clothing company called Premium Management and needed money to close a securities deal and for other business-related expenses. The indictment alleges that Jones spent the money on her own personal expenses. Jones, who was on bond pending a September 23 trial in the bank and bankruptcy fraud case, was prohibited from soliciting money from investors while the trial is pending. The new indictment also alleges that Jones failed to disclose to investors that she was under indictment and was prohibited from soliciting money. Jones is now being held in custody pending trial.
According to the nineteen count indictment returned by a federal grand jury in September 2013, Jones was the Chief Executive Officer of Diamond Decisions, Inc., which sold denim jeans marketed under the labels of Privacywear and PRVCY Premium. According to the indictment, Jones obtained a $15 million business line of credit from Union Bank, using fake financial statements and fake tax returns. The indictment states that Jones gave the bank a Social Security Number that belonged to someone else. Jones also hid from the bank that she had filed for bankruptcy previously and that she had a felony record. According to the indictment, Jones defaulted on the $15 million loan after a year causing Union Bank to file a lawsuit in state court. When Union Bank tried to seize the contents of the Diamond Decisions warehouse, Jones caused the company to file for bankruptcy and hid assets from the bankruptcy trustee.
Jones faces a maximum statutory sentence of 80 years on the wire fraud and contempt indictment. Jones faces a maximum statutory sentence of 489 years in federal prison on the bank and bankruptcy fraud indictment.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
The charges in the indictment are the result of an investigation conducted by the United States Secret Service and the Internal Revenue Service.
Release No. 14-086
Colorado Springs Man Sentenced to 92 Months in Federal Prison for Being A Felon in Possession of A Firearm and for Violating the Terms of His Supervised ReleaseRead the Press Release
DENVER – Jeffrey Scott Taylor, age 42, of Colorado Springs, was sentenced last week by Senior U.S. District Court Judge John L. Kane to serve 92 months in federal prison for being a felon in possession of a firearm and for violating that terms of his supervised release for an earlier felon in possession of a firearm conviction. The sentencing was announced by U.S. Attorney John Walsh and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Denver Special Agent in Charge Luke Franey. Taylor, who appeared at the sentencing hearing in custody, was remanded.
Taylor was indicted by a federal grand jury in Denver on September 25, 2013. He pled guilty to being a felon in possession of a firearm on December 23, 2014. He was sentenced by Senior Judge Kane on July 8, 2014.
According to the stipulated facts contained in the plea agreement and other court documents, on July 18, 2013, Colorado Springs Police were dispatched to a local residence to investigate a reported domestic disturbance. Officers spoke with the reporting party who told the officers that Jeffrey Scott Taylor had started an argument with other members of his family. Taylor apparently then left the home and walked away. While officers were speaking with the reporting party, Taylor was spotted walking towards the residence. The caller pointed out Taylor and identified him to the officers, who saw that Taylor had his hand in his pocket. An officer asked Taylor to remove his hand from his pocket. Taylor ignored the officers. The officers asked Taylor to come over and speak to them. Taylor walked over to the side of the house, bent down and placed an item on the ground. The officers subsequently detained Taylor and walked over to the place where Taylor had bent down. Officers found a .380 caliber pistol lying on the ground. The firearm was loaded with six rounds of .380 caliber ammunition.
Taylor is a prohibited person and convicted felon. Taylor had been convicted of the following felony offenses prior to his possession of the firearm:
- 12/13/1991; El Paso County District Court; Assault in the Second Degree;
- 12/13/1991; El Paso County District Court; Robbery;
- 05/12/1997; El Paso County District Court; Attempted Escape; and
- 06/01/2003; United States District Court, District of Colorado, Case No. 03-cr-288-JLK; Felon in Possession of a Firearm.Taylor was on supervised release for the 2003 felon in possession of a firearm offense at the time he was charged with this crime.
This case was investigated by the Colorado Springs Police Department and the ATF.
The defendant was prosecuted by Assistant U.S. Attorney Richard Hosley.
Cocaine Dealer in St. Mary’s County Drug Trafficking Conspiracy Sentenced to 20 Years in PrisonRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Jamar Holt, a/k/a “Reds,” “Jamal Holt” and “Rex,” age 36, of Baltimore, Maryland, today to 20 years in prison followed by five years of supervised release for conspiring to distribute and possess with intent to distribute five kilograms or more of cocaine and a kilogram or more of heroin; engaging in money laundering; and violating his supervised release. Chief Judge Chasanow also entered an order requiring Holt to forfeit $1 million, two vehicles, three properties located in Baltimore, as well as jewelry and $22,390 seized at Holt’s residence during the execution of a search warrant.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; St. Mary’s County Sheriff Tim Cameron; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office .
According to his plea agreement, from October 2012 to April 2013, Holt acquired kilograms of cocaine and other quantities of heroin, and provided the drugs to conspirators who distributed the drugs to customers. Co-conspirator Damon Estep coordinated the delivery of cocaine to himself and other conspirators from St. Mary’s County. The conspirators would meet in Glen Burnie to pay for the drugs to be distributed in St. Mary’s County by Estep and others. The distribution of between 15 and five kilograms of cocaine hydrochloride, and between three and one kilograms of heroin, were reasonably foreseeable to Holt.Holt had been sentenced on April 14, 2005 in federal court in Maryland to six years in prison followed by four years of supervised release for conspiring to distribute heroin. His drug trafficking activities occurred while on supervised release, thereby violating his terms of release.
In November 2012, Holt gave his girlfriend around $20,000, more or less, to buy a 2012 Jeep. In December 2012, Holt also delivered checks totaling $54,440.42 to an individual to pay off an outstanding loan on properties located at 524-530 Oldtown Mall, Baltimore. In return, Holt received an ownership interest in the properties. In February 2013, Holt provided $51,000 in cash to the seller of property located at 4338 Glenmore Avenue in Baltimore, in order to buy the property. The monies Holt provided in these transactions included the proceeds of his drug trafficking, which Holt intended to conceal.
When Holt was charged in May 2013 in a superseding indictment, he was notified that the government would seek forfeiture of any property obtained as a result of the drug conspiracy. Nevertheless, on June 25, 2013, Holt filed a false document purporting to transfer his ownership in 4338 Glenmore to his sister and mother. The signatures of his mother and sister on the document were forged. In filing this document, Holt intended to obstruct forfeiture proceedings.
On April 25, 2013, law enforcement executed a search warrant at Holt’s residence and seized drug paraphernalia, seven cell phones, $22,390 in cash and over $119,000 in jewelry, including 12 watches with brands such as Rolex and Breitling.
Chief Judge Chasanow sentenced Damon Jerome Estep, a/k/a “Country”, age 38, of California, Maryland, on February 7, 2014 to 188 months in prison. Co-defendants Alrahman Sharif Allen, a/k/a “Rock” and “Rahman Allen;” and Jeffrey Kirk Berry, a/k/a “Kojack,” previously pleaded guilty to their participation in the conspiracy and await sentencing.
United States Attorney Rod J. Rosenstein praised the DEA, St. Mary’s County Sheriff’s Office, and IRS-Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leah Jo Bressack and Deborah Johnston, who prosecuted the case.
Child Care Operator Charged with Fraud SchemeRead the Press Release
PHILADELPHIA - Tracey Parson, 44, of Sicklerville, NJ, was charged today by indictment with two counts of conspiracy, three counts of wire fraud, and one count of mail fraud, announced United States Attorney Zane David Memeger. The charges arose from a scheme to defraud the Pennsylvania Department of Education and the United States Department of Agriculture, and a separate scheme to defraud Clear Channel Communications, Inc. (“Clear Channel”), all through Kiddie Kare Child Care & Education Center (“Kiddie Kare”). Kiddie Kare was a day care company with locations in Philadelphia and was founded and run by Parson. Parson used Kiddie Kare to, among other things, defraud a federally funded program designed to provide meals to eligible children attending day care. In addition, Parson used Kiddie Kare to defraud Clear Channel in connection with a defamation lawsuit stemming from a radio broadcast. Parson falsely alleged in the lawsuit that the defamation resulted in lost revenue at Kiddie Kare.
If convicted the defendant faces a maximum possible sentence of 90 years in prison, a fine of up to $1.5 million, five years of supervised release, and a $600 special assessment.
The case was investigated by the Federal Bureau of Investigation and the United States Department of Agriculture Office of Inspector General. It is being prosecuted by Assistant United States Attorney Mary Kay Costello.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Bridgeport Man Sentenced to 5 Years for Illegal Gun PossessionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANTHONY PATTERSON, 35, of Bridgeport, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 60 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on November 13, 2012, a Connecticut State Police trooper stopped a rental car being driven by PATTERSON on I-95 South. When the trooper approached the vehicle, PATTERSON informed him that he was on parole for conspiracy to commit murder and that he was driving without a license. The trooper instructed PATTERSON to exit the vehicle, searched him and recovered a loaded .380 caliber handgun from PATTERSON’s waistband.
PATTERSON has been detained in state custody since his arrest. On March 19, 2014, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This is PATTERSON’s fifth felony conviction, including a conviction for conspiracy to commit murder. In November 2001, a 32-year-old man was shot seven times and killed by PATTERSON’s accomplices at the Roodner Court housing complex in Norwalk after PATTERSON had lured the victim out of an apartment.
This matter was investigated by the Connecticut State Police, Norwalk Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Vanessa Richards.
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[email protected]Boise Man Sentenced for Unlawfully Possessing AmmunitionRead the Press Release
BOISE – Michael Sean Crist, 46, of Boise, Idaho, was sentenced today in United States District Court to 44 months in prison followed by three years of supervised release for unlawfully possessing ammunition, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Crist to forfeit the firearm and ammunition involved in the offense.
According to the plea agreement, Crist possessed 555 rounds of ammunition on September 5, 2012. The ammunition was discovered when parole officers searched Crist’s residence. The parole officers also located a .22 semiautomatic pistol. Crist is prohibited from possessing firearms and ammunition because of previous felony convictions including: possessing a controlled substance with the intent to deliver and unlawful possession of a firearm in Ada County in 2004, and delivery of marijuana in Ada County in 1993. Crist pleaded guilty to the charge on April 24, 2014.
The case was investigated by the Idaho Department of Probation and Parole, Meridian Police Department, and the Treasure Valley Metro Violent Crimes Task Force. The Metro Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
Crist is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Bladensburg Man Sentenced to over 14 Years in Prison in Bank Fraud SchemeRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Lateef Akande, age 36, of Bladensburg, Maryland, today to 175 months in prison, followed by five years of supervised release, for conspiring to commit bank fraud, bank fraud, aggravated identity theft and money laundering. Judge Titus also ordered Akande to pay restitution of $418,042.58.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kathy A. Michalko of the United States Secret Service B Washington Field Office; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division .
According to his plea agreement, from January 2010 to May 2012, Akande and others recruited individuals to provide personal bank information regarding existing bank accounts in their names, or to open new accounts in their own names. Akande and others then caused third-party checks to be deposited into those bank accounts. For any of the checks that cleared, the co-conspirators would withdraw monies from those accounts.
For example, on January 29, 2010, Akande opened a bank account under the name of Tyrone Jackson and deposited a check in the amount of $29,750.90, drawn on the account of a victim. The check contained the words “Tax Refund” on the memo line. Akande then caused a check in the amount of $12,920, payable to an electric company, to be negotiated using the funds from this account.
Akande admits that the loss or intended loss as a result of the fraud scheme was $1,798,456.30.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the Secret Service and U.S. Postal Inspection Service for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys David I. Salem and Thomas P. Windom, and Special Assistant United States Attorney Margaret Moeser, of the U.S. Justice Department’s Asset Forfeiture & Money Laundering Section, who prosecuted the case.
Friday 11 July 2014
Worth County Minister Sentenced for Bank FraudRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced today that Craig A. Howell, 53, of Sylvester, Georgia, was sentenced to serve 12 months in federal prison for making false statements to a federally insured financial institution. The sentence was handed down by the Honorable W. Louis Sands, United States District Court Judge, in Albany, Georgia.
As part of the sentence, the Court entered a Preliminary Order of Forfeiture, ordering Howell to forfeit $100,000.00, or in the alternative, the real property and residence in Worth County which Howell purchased with the fraudulently obtained funds.On October 7, 2013, Mr. Howell, the pastor of Plantation Parkway Assembly of God Church, in Leesburg, Georgia, pleaded guilty to the indicted charges. According to the plea agreement, Mr. Howell entered an agreement with Brad Heard, Sr., Brad Heard, Jr., and banker Larry Malone to borrow a total of $800,000 from Southwest Georgia Farm Credit under false pretenses. Howell acted largely as a “straw” or conduit to pass approximately $700,000.00 directly to Mr. Heard, Sr., and Mr. Heard, Jr. Howell did not have the means or the intention of repaying these loans himself.
However, Mr. Howell kept $100,000.00 of the loan proceeds for himself. Mr. Howell then falsely represented to Heritage Bank that the $100,000.00 was a gift from his mother. Mr. Howell caused his mother to sign a fraudulent “gift letter” formally attesting that the $100,000.00 was a gift. He also photocopied the front of a check from his mother payable to him and gave it to Heritage Bank as proof that his mother had given him the down payment as a gift. This check was never negotiated, and in fact, Mr. Howell’s mother had only a few thousand dollars in her checking account at the time.
The case was investigated by the Federal Bureau of Investigation, the United States Secret Service, and internal auditors with Southwest Georgia Farm Credit. Assistant United States Attorney James N. Crane represented the Government in the prosecution of the case.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Week in Review - South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Maricruz Mendoza, aka Erika L. Luna, 36, of Elkhart, Indiana pled guilty to the felony offense of theft of government property. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Department of Labor and the Indiana Department of Work Force Development. Sentencing has been set for 10/16/ 2014. This case is being prosecuted by Assistant United States Attorney Barbara Brook.
- Alfonso Serrano, 46, of Logansport, Indiana pled guilty to the felony offense of conspiracy to distribute cocaine over 500 grams. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Administration. Sentencing has been set for 10/17/2014. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
- Jose Luis Lopez, 24, of Logansport, Indiana pled guilty to the felony offense of distribution of cocaine. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Administration. Sentencing has been set for 10/17/2014. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Daniel Haslam, 43, of Crawfordsville, Indiana was sentenced to 181 months imprisonment with 3 years supervised release after pleading guilty to the felony offenses of possession of unregistered silencers, illegal manufacture of methamphetamine, possession of multiple firearms as a drug user and possession of multiple firearms in furtherance of drug trafficking. According to documents filed in this case, Haslam had a number of completed firearm silencers as well as silencers that he was still manufacturing. Additionally, there were a number of firearms in the house (several loaded rifles, a shotgun, and a revolver). Haslam was manufacturing and using methamphetamine. Records for pseudoephedrine purchases show that Haslam made 30 pseudoephedrine purchases in 2011 and through August 2012. Local police executed a search warrant and discovered evidence of methamphetamine manufacturing and use, ammunition and multiple firearms and silencers. None of the silencers or firearms were registered to Haslam in the National Firearms Registration and Transfer Record. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Donald J. Schmid.
- Davon Stewart, 39, of South Bend, Indiana was sentenced to 106 months imprisonment with 3 years supervised release after pleading guilty to the felony offenses of possessing cocaine base (crack) with intent to distribute and possessing a firearm in furtherance of a drug trafficking crime. According to documents filed in this case, local law enforcement went to a residence in South Bend searching for a wanted individual. At the location being visited, Stewart answered the door and gave officers consent to enter and search. Officers detected and observed marijuana within the location. Stewart readily admitted that he smoked marijuana. After officers obtained search warrants for the residence, a .40 caliber Smith & Wesson pistol with a loaded magazine was discovered. Near the gun, police found 4 grams of crack cocaine and 6 grams of powder cocaine in two plastic baggies. Officers also discovered a video surveillance system, digital scales, ammunition, additional cocaine powder concealed in a ceiling fan and marijuana. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosive. This case was prosecuted by Assistant United States Attorney Donald Schmid.
- Tiffany J. Miller, 28, of Ligonier, Indiana was sentenced to 2 years probation and to pay $15,062 in restitution after pleading guilty to the felony offense of theft of government property. According to documents filed in this case, from in or around September 2010 through August 2011, Miller applied for and received extended unemployment insurance benefits through the State of Indiana Department of Work Force Development (IDWD.) Miller submitted weekly vouchers to IDWD and intentionally answered “No” to the question asking if she was working when in truth she was employed in Elkhart, Indiana during the specified week. Miller also failed to disclose she received wages during that time period. This case was the result of an investigation by the Department of Labor and the Indiana Department of Work Force Development. This case was prosecuted by Assistant United States Attorney Barbara Brook.
- Patrick J. Condon, Jr., 41, of South Bend Indiana was sentenced to 2 years probation and to pay $40,251.50 in restitution after pleading guilty to the felony offense of theft of government property. According to documents filed in this case, April 2010 through July 2011, Condon applied for and received extended unemployment insurance benefits through the State of Indiana Department of Work Force Development (IDWD). Condon submitted weekly vouchers to IDWD and intentionally answered “No” to the question asking if he was working when in truth and in fact he was employed in Elkhart, Indiana during the specified week and earned wages. This case was the result of an investigation by the Department of Labor and the Indiana Department of Work Force Development. This case was prosecuted by Assistant United States Attorney Barbara Brook.
Week in Review - HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Timothy Yatsko, 42, of Portage, Indiana was sentenced to 30 months imprisonment with 2 years supervised release after pleading guilty to felony possession of a firearm. According to documents filed in this case, on March 14, 2013, Yatsko was found in possession of nine firearms and an assortment of ammunition after previously being convicted of a felony in the Superior Court of Lake County. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Portage Police Department, Lake Station Police Department, and Porter County Sheriff’s Department. This case was prosecuted by Assistant United States Attorney Thomas McGrath.
- Armando Ortega, 36, of Hammond, Indiana was sentenced to 5 months on home detention with 2 years of supervised release after pleading guilty to the felony offense of possession with intent to distribute a quantity of cocaine. According to documents filed in this case, on February 25, 2012, law enforcement officers responded to a domestic call at the defendant’s residence and smelled a strong smell of marijuana. On April 6, 2012, a Hammond detective decided to do a “knock and talk” at same residence, when he approached it he smelled a strong odor of marijuana. He left the residence without contact. Three days later, Hammond Police officers did a trash pull, and recovered the remains of marijuana blunts and stems. On April 13, 2012, Hammond Police executed a search warrant on the residence. They recovered around 240 grams of cocaine and redistribution amounts of marijuana. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney David Nozick.
Week in Review - Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Bryant Davis, 40, of Fort Wayne, Indiana was sentenced to 30 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, local law enforcement obtained and executed a state search warrant for the Davis’ residence. During the search, a firearm was located in the bathroom and one was thrown out a window of the residence. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Tina Nommay.
- Christopher M. Salas, 41, of Fort Wayne, Indiana was sentenced to 2 years probation concurrently on both counts of conviction after pleading guilty to the felony offenses of being a felon in possession of a firearm and possession with intent to distribute cocaine. According to documents filed in this case, on April 12, 2011, law enforcement served a search warrant at Salas’ residence. During the search, firearms and cocaine were discovered in the bedroom. This case was the result of an investigation by the Federal Bureau of Investigation and its Fort Wayne Safe Streets Task Force, which is comprised of FBI agents and officers from the Indiana State Police, Allen County Police Department, and Fort Wayne Police Department. The Fort Wayne Police Department Vice and Narcotics Division and the Allen County Drug Task Force assisted with this investigation. This case was prosecuted by Assistant United States Attorney Lovita Morris King.
- Ben B. Fisher, 38, of Fort Wayne, Indiana was sentenced to 8 months imprisonment with time served and 1 year supervised release after pleading guilty to the felony offense of using a telephone to facilitate a drug felony to include conspiring to distribute and possess with intent to distribute marijuana. According to documents filed in this case, this investigation progressed with a spinoff wiretaps through two different supply chains. Interceptions over Fisher’s telephone led to an immediate supplier. This case was the result of an investigation by the Federal Bureau of Investigation, and the Fort Wayne Safe Streets Task Force, which is comprised of FBI agents and officers from the Indiana State Police, Allen County Police Department, and the Fort Wayne Police Department. A number of law enforcement agencies also assisted with this investigation, including the Fort Wayne Police Department Vice and Narcotics Division and Gang Unit, the Allen County Drug Task Force, United States Marshals Service, New Haven Police Department, Orange County California Regional Narcotics Suppression Program, San Bernardino County California Sheriff’s Department, and the Kansas City, Missouri Police Department Drug Interdiction Unit. This case was prosecuted by Assistant United States Attorney Anthony Geller.
Waycross Men Charged with Enticing Minors to Engage in Sex Acts and with Producing Child PornographyRead the Press Release
SAVANNAH, GA: JACQUES DONTE TAYLOR, 22, and DONNEL CORNELIUS SHAVERS, 22, both of Waycross, Georgia, were indicted by a federal grand jury sitting in Savannah earlier this week on numerous counts of enticing minors to engage in sexual acts and with production of child pornography. In part, the indictment alleges that from January through March of 2014 TAYLOR and SHAVERS persuaded, induced, and enticed two minors to engage in sexually explicit conduct for the purpose of producing child pornography.
United States Attorney Edward J. Tarver said, “These defendants have been charged with committing heinous acts against young children. Our children deserve protection from those who abuse and prey on them. The U. S. Attorney’s Office will continue to aggressively prosecute those who violate the innocence of our children.”
“The online exploitation of children is a problem being faced by law enforcement agencies at all levels of government,” said Brock D. Nicholson, special agent in charge of ICE Homeland Security Investigations (HSI) in Atlanta. “By working with local partners like the Ware County Sheriff’s Office, HSI special agents can use their unique authorities and technical expertise to help fully investigate crimes against children and ensure their perpetrators are brought to justice.”
Ware County Sheriff Randy F. Royal stated, “I am proud of our investigator, Detective Hope Salinas, who began the initial investigation, which led to Mr. Taylor and Mr. Shavers’ arrests and their being charged with child molestation and other state-level felonies. I am prouder still of the level of support and the spirit of cooperation between our agency and Homeland Security Investigations, which afforded the manpower and resources needed to broaden the scope of the investigation so that all the victims in this case will get the opportunity for justice.”
The federal indictment of TAYLOR and SHAVERS arises out of a joint investigation by the HSI and the Ware County Sheriff’s Office, with additional assistance from the Liberty County Sheriff’s Office. Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, which is a nationwide U. S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims.
Assistant United States Attorney Daniel R. Crumby is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Warren County Man Sentenced to 120 Months in Prison for Possessing and Receiving Child PornographyRead the Press Release
Defendant Used his Computer and the Internet to Download and Save Approximately 600 Child Pornography Files
ALBANY, NEW YORK – GARY MINER, age 45, of Glens Falls, New York was sentenced on July 10, 2014 to 120 months of imprisonment for possessing and receiving child pornography by United States District Court Judge Mae A. D’Agostino, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division. MINER, who had entered a guilty plea on February 6, 2014, was also ordered to serve a 25 year term of supervised release, to have no unsupervised contact with minors, and to register with the New York State Sex Offender Registry Program.
Between January 2010 and November 29, 2011, MINER used the Internet to download approximately 600 files that contained child pornography from a website and other individuals.
This case was investigated by the Federal Bureau of Investigation.
Walter Liew Sentenced to Fifteen Years in Prison for Economic EspionageRead the Press Release
SAN FRANCISCO – Yesterday, Walter Lian-Heen Liew (aka Liu Yuanxuan) was sentenced to serve 15 years in prison, forfeit $27.8 million in illegal profits, and pay $511,667.82 in restitution for what the sentencing judge described as a “white collar crime spree” that included violations of the Economic Espionage Act, tax evasion, bankruptcy fraud, and obstruction of justice, announced U.S. Attorney Melinda Haag; John P. Carlin, Assistant Attorney General for National Security at the Department of Justice; David Johnson, Special Agent in Charge of the Federal Bureau of Investigation (FBI), San Francisco Division; and Jose Martinez, Special Agent in Charge of the Oakland Field Office, Internal Revenue Service (IRS), Criminal Investigation.
Liew was convicted on March 6, 2014, after a two month jury trial before the Honorable Jeffery S. White, U.S. District Court Judge, on each of the twenty counts with which he was charged. The jury found that Liew, his company, USA Performance Technology, Inc. (USAPTI), and Robert Maegerle conspired to steal trade secrets from E.I. du Pont de Nemours & Company regarding their chloride-route titanium dioxide production technology and sold those secrets for large sums of money to state-owned companies of the People’s Republic of China (PRC). The purpose of their conspiracy was to help those companies develop large-scale chloride-route titanium dioxide production capabilities in the PRC, including a planned 100,000-ton titanium dioxide factory in Chongqing. This case marks the first federal jury conviction on charges brought under the Economic Espionage Act of 1996.
The jury also found that Liew, USAPTI, and Maegerle obstructed justice during the course of their conspiracy. The jury found that Liew filed false tax returns for USAPTI and Performance Group, a predecessor company to USAPTI, and made false statements and oaths in bankruptcy proceedings for Performance Group.
Liew, 56, of Walnut Creek, Calif., originally was indicted in August 2011 and the grand jury subsequently returned two superseding indictments. Liew was convicted of conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, attempted economic espionage, attempted theft of trade secrets, possession of trade secrets, conveying trade secrets, conspiracy to obstruct justice, witness tampering, conspiracy to tamper with evidence, false statements, filing false tax returns, false statements in bankruptcy proceedings, and false oath in bankruptcy proceedings. Liew was an owner and president of USAPTI, a company headquartered in Oakland, Calif., that offered consulting services. USAPTI was found guilty of conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, attempted economic espionage, attempted theft of trade secrets, possession of trade secrets, conveying trade secrets, and conspiracy to obstruct justice.
Evidence at trial showed that in the early 1990s, Liew met with the government of the PRC and was informed that the PRC had prioritized the development of chloride-route titanium dioxide (TiO2) technology. TiO2 is a commercially valuable white pigment with numerous uses, including coloring paint, plastics, and paper. DuPont’s TiO2 chloride-route process also produces titanium tetrachloride, a material with military and aerospace uses. Liew was aware that DuPont had developed industry leading TiO2 technology over many years of research and development and assembled a team of former DuPont employees, including Robert Maegerle, to assist him in his efforts to convey DuPont's TiO2 technology to entities in the PRC. Liew executed contracts with state-owned entities of the PRC for chloride-route TiO2 projects that relied on the transfer of illegally obtained DuPont technology. Liew, Maegerle, and USAPTI obtained and sold DuPont’s TiO2 trade secrets to the Pangang Group companies for more than $20 million.
The jury found Liew, Maegerle, and USAPTI guilty of obstructing justice by causing an answer to be filed in a federal civil lawsuit in which they falsely claimed that no information from DuPont’s Kuan Yin plant was used in the USAPTI designs for the development of TiO2 manufacturing facilities. Liew was also found guilty of witness tampering for his efforts to influence a co-defendant’s testimony in the civil lawsuit. The jury also convicted Liew of conspiring with his wife, Christina Liew, to mislead the FBI by corruptly concealing records, documents, and other objects during the FBI’s investigation into their criminal activity.
Liew was also convicted of filing a false income tax return for his company, Performance Group, for calendar years 2006, 2007, and 2008 and for USAPTI in 2009 and 2010. The jury also found Liew guilty of making false statements and a false oath in connection with filing for bankruptcy for Performance Group in 2009.
Liew, as co-owner of USAPTI, entered into contracts worth nearly $28 million to convey TiO2 trade secret technology to Pangang Group companies. The Liews received millions of dollars of proceeds from these contracts. The proceeds were wired through the United States, Singapore, and ultimately back into several bank accounts in the PRC in the names of relatives of Christina Liew.
The sentence was handed down by the Honorable Jeffrey S. White, U.S. District Court Judge. The Court stated during the sentencing hearing that the 15 year sentence was intended, in part, to send a message that the theft and sale of trade secrets for the benefit of a foreign government is a serious crime that threatens our national economic security. In addition to the prison term, the Court ordered Liew to forfeit $27.8 million, and to pay $511,667.82 in restitution to DuPont and victims of his bankruptcy fraud and a $2,000 special assessment ($100 for each of the twenty counts of conviction).
The case was prosecuted by attorneys from the Special Prosecution Unit of the U.S. Attorney’s and the U.S. Department of Justice National Security Division. The FBI and the IRS Criminal Investigation Division were responsible for the investigation.
(Liew second superseding indictment )
Two Metro East Women Convicted of Unemployment FraudRead the Press Release
Follow @SDILNewsTwo more metro east women have been convicted of unemployment fraud. Melonetria McCallum, 37, of O’Fallon, Ill., and Trudie Lindsey, 57, of East St. Louis Ill., pleaded guilty to Embezzlement of Public Funds on July 11, 2014, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Documents filed in US District Court established that in each case the women applied for and received unemployment compensation from the state of Missouri at a time when they were earning income and residing in Illinois. In each case, the women falsely certified that they were eligible to receive unemployment benefits and concealed the fact that they had employment at the time they were also receiving benefits. McCallum is accused of unlawfully taking $14,219.97 from the program, while Lindsey was charged with stealing $14,001.00.
The Missouri Department of Employment Security administers Missouri’s unemployment program to provide temporary income replacement for individual workers who lost their jobs through no fault of their own. US Attorney Stephen R. Wigginton said, “These programs are funded through the taxes paid by employers, employees and additional federal contributions. This money is intended to serve as the fundamental safety net in society, not as a hammock for those who double dip.”
Embezzlement of public funds is punishable by not more than 10 years in prison, and/or a $250,000 fine, or both, and not more than three years of supervised release. Each defendant will also be required to make restitution for the amount that they stole. The United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Both defendants will be sentenced in US District Court on October 23, 2014.
The investigations were conducted by agents from the US Department of Labor, Office of the Inspector General. The cases are being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Two Men Sentenced for Identity Theft/Income Tax FraudRead the Press Release
TALLAHASSEE, FLORIDA – United States Attorney Pamela C. Marsh announced today thatClifford Virgile, 25, of Tallahassee, and Rodney Charles, 22, of Miami, were sentenced to prisons terms based upon their pleas of guilty to identity theft and income tax refund fraud charges. United States District Judge Robert L. Hinkle sentenced Virgile to a total of 70 months in prison, three years of supervised release, $500 in special monetary assessments, and $102,824 in restitution. Charles received a total term of 25 months in prison, three years of supervised release, $400 in special monetary assessments, and $4,475 in restitution.
According to court records, the men were arrested on the Florida State University campus on May 16, 2013. FSU Police Officers responded after employees noticed the men loitering in a deserted area, near a bank of automated teller machines shortly before 6:00 a.m. Charles fled when officers approached. When caught, Charles had $2,906 in cash, a debit card in a woman’s name, and a receipt showing that he had just withdrawn $500 using that card. Virgile was located nearby. When officers found Virgile’s rental vehicle, they discovered another five debit cards in other people’s names, $13,605 in cash, and receipts for other cash withdrawals.
Officers also found Virgile’s laptop, which contained stolen personal identity information (“PII”) for about 250 people. Other fraudulent income tax returns have been linked to the PII in Virgile’s computer and to the internet addresses used for the returns, which were directed to the debit cards.
Proceeds from seventeen fraudulent income tax returns were sent to these six debit cards. These returns sought a total of $95,499 and actually caused refunds totaling $58,513 to be issued. Another $17,953 was recovered from the debit cards after they were seized. Sentencing was based upon total attempted losses exceeding $400,000 and actual losses of $119,619, which were reduced by the monies seized when the defendants were arrested.
U.S. Attorney Marsh credited the success of this prosecution to the joint efforts of the FSU Police Department, the U.S. Secret Service, and the Internal Revenue Service. The case was prosecuted by Assistant United States Attorney Michael T. Simpson.
Two Men Charged with Insider Trading of Stock in American Superconductor CorporationRead the Press Release
BOSTON – Two men were charged today with conspiring to use inside information about business activities of American Superconductor Corporation (AMSC) to profit from trading AMSC stock.
Eric McPhail, 41, of Waltham and Douglas Parigian, 56, of Lowell, were indicted on charges of conspiracy and securities fraud. Parigian was also charged with making false statements to a federal agent in the course of the investigation.
U.S. Attorney Carmen M. Ortiz said, “Those who engage in insider trading are rigging the system and victimizing the law-abiding citizens who choose to invest our public companies. We will aggressively police the markets to deter this kind of behavior.”
Vincent Lisi, Special Agent in Charge of the Boston Division said, “For those that think they can get away with insider trading, they should know the government has a variety of safeguards in place to detect possible insider trading through the review of suspiciously timed trades. Once someone gets on the radar screen, no matter how inside information is shared or acted on, whether person to person at a country club with golfing buddies, over the phone to trusted allies, or by oneself, the FBI has the tools to investigate and prove the criminal activity. Knowing that we can detect such trading and have the capability to uncover the schemes, those who want to harm the investing public should think twice.”
According to the indictment, starting in or about July 2009, McPhail began giving several of his friends, including Parigian, inside information about AMSC’s business activities and upcoming earnings announcements. McPhail obtained this information during golf outings and other social activities with a close friend who was a senior executive at AMSC. The executive, however, trusted McPhail to keep the information to himself and was unaware that McPhail was using it to tip his friends.
Between July 2009 and April 2011, several of McPhail’s friends, including Parigian, repeatedly traded on the inside information. Over that time, Parigian allegedly made over $300,000 in illicit gains. It is further alleged that during an interview with federal agents in May 2012, Parigian lied about his trading activities and his knowledge of others who traded in AMSC shares.
The statute for the criminal charges provides a maximum sentence of 20 years in prison on the securities fraud charge to be followed by three years of supervised release and a $5 million fine. The conspiracy and false statements charges carry a maximum sentence of five years in prison, three years of supervised release and a fine of $250,000 per count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ortiz and SAC Lisi made the announcement today. The United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission in the course of investigating this case. The case is being prosecuted by Andrew E. Lelling of Ortiz’s Economic Crimes Unit.
The details contained in the Indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Long Beach Men Plead Guilty to Conspiracy to Engage in Sex Trafficking by Force, Fraud and CoercionRead the Press Release
SANTA ANA, California – Two Long Beach, California, men pleaded guilty today to conspiracy charges arising from a sex trafficking scheme that exploited adult women for prostitution. Roshaun Nakia Porter, 39, and Marquis Monte Horn, 35, both pleaded guilty before Judge Josephine L. Staton in the U.S. District Court for the Central District of California to conspiring to engage in sex trafficking by force, fraud and coercion. Sentencing has been set for Oct. 24, 2014, and each defendant faces a sentence of up to life imprisonment.
According to documents filed in court, from October 2009 through April 2012, Porter and Horn conspired together and with others to recruit, entice, harbor, transport and provide women to engage in commercial sex acts, using various coercive means to compel the women to engage in prostitution for the defendants’ financial benefit. Porter and Horn’s scheme of force, fraud and coercion included false and deceptive internet advertisements they used to lure the victims into romantic relationships with the defendants, and psychological manipulation and control to cause the victims to engage in commercial sex acts for the defendants’ financial benefit.
“Human trafficking is a horrific crime that causes significant damage to victims who are often forced to commit unspeakable acts,” said U.S. Attorney André Birotte Jr. for the Central District of California. “This scheme to control and manipulate victims forced to work in the sex trade has come to an end. With today’s guilty pleas, I hope that healing for the victims can begin.”
“The Department of Justice is committed to the vigorous prosecution of defendants who prey upon and exploit vulnerable individuals for their own financial gain,” said Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division. “We will continue to pursue justice on behalf of victims of human trafficking to restore their rights and dignity and to hold their traffickers accountable.”
“Sex trafficking is not something that only happens outside of the United States, but victimizes Americans in our own backyards,” said Assistant Director of the FBI Los Angeles Field Office Bill Lewis. “In this case, the defendants defrauded victims and forced them to work as sex slaves under threat to themselves and their families. I hope this conviction reminds vigilant members of the public to report the signs of human and sex trafficking to law enforcement when they encounter it.”
This matter was investigated by the FBI and is being prosecuted by the U.S. Attorney’s Office for the Central District of California and the Civil Rights Division’s Human Trafficking Prosecution Unit.
Release No. 14-085
Two Former Chesapeake, Virginia, Subcontractors Sentenced for Bribery, ConspiracyRead the Press Release
Dwayne A. Hardman, 44, co-founder of two government contracting companies that sought business from the United States Navy Military Sealift Command (MSC), and Adam C. White, 40, former vice president and co-owner of one of Hardman’s government contracting companies, were sentenced for bribery and conspiracy. On July 9, 2014, Hardman was sentenced to 96 months in prison, followed by three years of supervised release. White was sentenced today to serve 24 months in prison, followed by three years of supervised release. Hardman was ordered to forfeit $144,000, and White was ordered to forfeit $57,000.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney Dana J. Boente for the Eastern District of Virginia, Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Office, Acting Executive Assistant Director Charles T. May Jr. of the Naval Criminal Investigative Service (NCIS) and Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office made the announcement today after sentencing by United States Chief Judge Rebecca Beach Smith of the Eastern District of Virginia.
According to court documents, Hardman and White participated in a five-year bribery scheme in which they and several co-conspirators provided more than $265,000 in cash bribes, among other things, to two public officials working for MSC, in an illegal effort to influence those public officials to provide favorable treatment to Hardman and White’s companies in connection with United States government contracting work.
On Feb. 18, 2014, Hardman pleaded guilty to a criminal information charging him with bribery. According to the plea documents, Hardman was the co-founder of two government contracting companies, referred to as Company A and Company B, located in Chesapeake, Virginia that sought contracting business from MSC, which is the leading provider of transportation for the United States Navy. At his plea hearing, Hardman admitted that beginning in March 2005, he and other Company A employees, provided approximately $3,000 in cash bribes per month to two MSC public officials, Kenny E. Toy, the former Afloat Programs Manager for the MSC’s N6 Command, Control, Communication, and Computer Systems Directorate, and Scott B. Miserendino Sr., a former government contractor who performed work for the MSC. Those Company A employees included Roderic J. Smith, the former president, co-owner and co-founder of Company A; Adam C. White, a former vice president and co-owner of Company A; and Michael P. McPhail a former project manager and co-owner of Company A. Hardman also admitted that in May 2009, he and Timothy S. Miller, co-founder of Company B, provided $50,000 in cash bribes to Toy and Miserendino. In addition to the cash bribes, Hardman stated that he and his co-conspirators provided Toy and Miserendino flat screen televisions, a paid vacation to Nags Head in North Carolina, a personal loan and installation of hardwood floors in Toy’s residence.
In exchange for these bribes, Toy and Miserendino provided favorable treatment in connection with MSC-related business to both Company A and Company B. During the bribery scheme, Company A received approximately $3 million in MSC-related business, and Company B received approximately $2.4 million in MSC-related business.
As part of his guilty plea, Hardman also admitted that, in approximately November or December 2010, Hardman threatened to report the bribery activities to law enforcement authorities if his co-conspirators did not provide him money. In total, Hardman admitted that he received approximately $85,000 from his co-conspirators, including Smith, Toy and Miserendino, in exchange for not reporting the bribery scheme to law enforcement authorities.
On April 4, 2014, White pleaded guilty to a criminal information charging him with conspiracy to commit bribery. At his plea hearing, White admitted that from approximately April 2005 until approximately March 2006, he personally contributed approximately $26,000 in cash bribe payments for Toy and Miserendino, and White was aware that other co-conspirators, including Hardman, Smith and McPhail, were also contributing cash and other things of value to be provided to Toy and Miserendino in exchange for their official assistance in providing MSC-related business.
Earlier this year, three other individuals pleaded guilty in connection with the bribery scheme. On Feb. 12, 2014, Toy, the former Afloat Programs Manager, pleaded guilty to accepting bribes from Hardman, White, and others. On Feb. 19, 2014, McPhail pleaded guilty to conspiracy to commit bribery. On March 5, 2014, Smith pleaded guilty to conspiracy to bribe public officials.
On June 23, 2014, United States District Judge Henry Coke Morgan of the Eastern District of Virginia sentenced Smith to 48 months in prison followed by 1 year of supervised release and ordered him to forfeit $175,000.
On May 23, 2014, a grand jury in the Eastern District of Virginia indicted Miserendino and Miller. The indictment charges Miserendino with one count of conspiracy to commit bribery, one count of bribery, one count of conspiracy to commit obstruction of criminal investigations and to commit tampering with a witness, and one count of obstruction of criminal investigations. The indictment charges Miller with one count of conspiracy to commit bribery and two counts of bribery. Trial is set for Sept. 30, 2014, before Chief Judge Rebecca Beach Smith of the Eastern District of Virginia.
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case was investigated by Special Agents of the FBI, NCIS, and DCIS. The case is being prosecuted by Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Stephen W. Haynie of the Eastern District of Virginia.Two Former Chesapeake, Virginia, Subcontractors Sentenced for Bribery, ConspiracyRead the Press Release
WASHINGTON – Dwayne A. Hardman, 44, co-founder of two government contracting companies that sought business from the United States Navy Military Sealift Command (MSC), and Adam C. White, 40, former vice president and co-owner of one of Hardman’s government contracting companies, were sentenced for bribery and conspiracy. On July 9, 2014, Hardman was sentenced to 96 months in prison, followed by three years of supervised release. White was sentenced today to serve 24 months in prison, followed by three years of supervised release. Hardman was ordered to forfeit $144,000, and White was ordered to forfeit $57,000.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney Dana J. Boente for the Eastern District of Virginia, Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Office, Acting Executive Assistant Director Charles T. May Jr. of the Naval Criminal Investigative Service (NCIS) and Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office made the announcement today after sentencing by United States Chief Judge Rebecca Beach Smith of the Eastern District of Virginia.
According to court documents, Hardman and White participated in a five-year bribery scheme in which they and several co-conspirators provided more than $265,000 in cash bribes, among other things, to two public officials working for MSC, in an illegal effort to influence those public officials to provide favorable treatment to Hardman and White’s companies in connection with United States government contracting work.
On Feb. 18, 2014, Hardman pleaded guilty to a criminal information charging him with bribery. According to the plea documents, Hardman was the co-founder of two government contracting companies, referred to as Company A and Company B, located in Chesapeake, Virginia that sought contracting business from MSC, which is the leading provider of transportation for the United States Navy. At his plea hearing, Hardman admitted that beginning in March 2005, he and other Company A employees, provided approximately $3,000 in cash bribes per month to two MSC public officials, Kenny E. Toy, the former Afloat Programs Manager for the MSC’s N6 Command, Control, Communication, and Computer Systems Directorate, and Scott B. Miserendino Sr., a former government contractor who performed work for the MSC. Those Company A employees included Roderic J. Smith, the former president, co-owner and co-founder of Company A; Adam C. White, a former vice president and co-owner of Company A; and Michael P. McPhail a former project manager and co-owner of Company A. Hardman also admitted that in May 2009, he and Timothy S. Miller, co-founder of Company B, provided $50,000 in cash bribes to Toy and Miserendino. In addition to the cash bribes, Hardman stated that he and his co-conspirators provided Toy and Miserendino flat screen televisions, a paid vacation to Nags Head in North Carolina, a personal loan and installation of hardwood floors in Toy’s residence.
In exchange for these bribes, Toy and Miserendino provided favorable treatment in connection with MSC-related business to both Company A and Company B. During the bribery scheme, Company A received approximately $3 million in MSC-related business, and Company B received approximately $2.4 million in MSC-related business.
As part of his guilty plea, Hardman also admitted that, in approximately November or December 2010, Hardman threatened to report the bribery activities to law enforcement authorities if his co-conspirators did not provide him money. In total, Hardman admitted that he received approximately $85,000 from his co-conspirators, including Smith, Toy and Miserendino, in exchange for not reporting the bribery scheme to law enforcement authorities.
On April 4, 2014, White pleaded guilty to a criminal information charging him with conspiracy to commit bribery. At his plea hearing, White admitted that from approximately April 2005 until approximately March 2006, he personally contributed approximately $26,000 in cash bribe payments for Toy and Miserendino, and White was aware that other co-conspirators, including Hardman, Smith and McPhail, were also contributing cash and other things of value to be provided to Toy and Miserendino in exchange for their official assistance in providing MSC-related business.
Earlier this year, three other individuals pleaded guilty in connection with the bribery scheme. On Feb. 12, 2014, Toy, the former Afloat Programs Manager, pleaded guilty to accepting bribes from Hardman, White, and others. On Feb. 19, 2014, McPhail pleaded guilty to conspiracy to commit bribery. On March 5, 2014, Smith pleaded guilty to conspiracy to bribe public officials.
On June 23, 2014, United States District Judge Henry Coke Morgan of the Eastern District of Virginia sentenced Smith to 48 months in prison followed by 1 year of supervised release and ordered him to forfeit $175,000.
On May 23, 2014, a grand jury in the Eastern District of Virginia indicted Miserendino and Miller. The indictment charges Miserendino with one count of conspiracy to commit bribery, one count of bribery, one count of conspiracy to commit obstruction of criminal investigations and to commit tampering with a witness, and one count of obstruction of criminal investigations. The indictment charges Miller with one count of conspiracy to commit bribery and two counts of bribery. Trial is set for Sept. 30, 2014, before Chief Judge Rebecca Beach Smith of the Eastern District of Virginia.
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case was investigated by Special Agents of the FBI, NCIS, and DCIS. The case is being prosecuted by Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Stephen W. Haynie of the Eastern District of Virginia.Tweet
Two California Men Plead Guilty to Conspiracy to Engage in Sex Trafficking by Force, Fraud and CoercionRead the Press Release
Two Long Beach, California, men pleaded guilty today to conspiracy charges arising from a sex trafficking scheme that exploited adult women for prostitution. Roshaun Nakia Porter, 39, and Marquis Monte Horn, 35, both pleaded guilty before Judge Josephine L. Staton in the U.S. District Court for the Central District of California to conspiring to engage in sex trafficking by force, fraud and coercion. Sentencing has been set for Oct. 24, 2014, and each defendant faces a sentence of up to life imprisonment.
According to documents filed in court, from October 2009 through April 2012, Porter and Horn conspired together and with others to recruit, entice, harbor, transport and provide women to engage in commercial sex acts, using various coercive means to compel the women to engage in prostitution for the defendants’ financial benefit. Porter and Horn’s scheme of force, fraud and coercion included false and deceptive internet advertisements they used to lure the victims into romantic relationships with the defendants, and psychological manipulation and control to cause the victims to engage in commercial sex acts for the defendants’ financial benefit.
“The Department of Justice is committed to the vigorous prosecution of defendants who prey upon and exploit vulnerable individuals for their own financial gain,” said Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division. “We will continue to pursue justice on behalf of victims of human trafficking to restore their rights and dignity and to hold their traffickers accountable.”
“Human trafficking is a horrific crime that causes significant damage to victims who are often forced to commit unspeakable acts,” said U.S. Attorney André Birotte Jr. for the Central District of California. “This scheme to control and manipulate victims forced to work in the sex trade has come to an end. With today’s guilty pleas, I hope that healing for the victims can begin.”
“Sex trafficking is not something that only happens outside of the United States, but victimizes Americans in our own backyards,” said Assistant Director of the FBI Los Angeles Field Office Bill Lewis. “In this case, the defendants defrauded victims and forced them to work as sex slaves under threat to themselves and their families. I hope this conviction reminds vigilant members of the public to report the signs of human and sex trafficking to law enforcement when they encounter it.”
This matter was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Sandy Leal of the U.S. Attorney’s Office for the Central District of California and Trial Attorney Daniel H. Weiss of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Texas Man Sentenced to 120 Months in Prison for Attempting to Entice A Minor to Have SexRead the Press Release
LAFAYETTE, La. –A Texas man was sentenced to 120 months in prison and five years of supervised release for contacting a 14-year-old girl in order to start a sexual relationship, U.S. Attorney Stephanie A. Finley announced today.
Elton Ray Jones, 67, of Zavalla, Texas, was sentenced by U.S. District Judge Elizabeth E. Foote for one of count attempting to entice a minor to engage in criminal sexual activity. He was found guilty after a two-day jury trial that ended on March 12, 2014. Based on witness testimony and documents admitted into evidence, it was shown that from September 11, 2012 to October 17, 2012, Jones made contact and conducted online chats with a law enforcement officer posing as a 14-year-old girl. Jones engaged in explicit conversations and planned a sexual encounter. Law enforcement officers arrested Jones on October 17, 2012 in Lafayette where Jones had planned to meet the girl.
This case is part of Project Safe Childhood, a U.S. Department of Justice launched nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be submitted anonymously.The Louisiana State Police and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Myers P. Namie and John Luke Walker prosecuted the case.
South Florida Man Sentenced to Prison for $10.5 Million Medicare Fraud SchemeRead the Press Release
A south Florida man was sentenced today in federal court in Tampa, Florida, to serve 48 months in prison in connection with a $10.5 million Medicare fraud scheme involving physical and occupational therapy services.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III for the Middle District of Florida, Acting Special Agent in Charge Ryan Lynch of the U.S. Health and Human Services Office of Inspector General (HHS-OIG) region including all of Florida, and Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office made the announcement.
Luis Alberto Garcia Perojo (Garcia), 43, previously pleaded guilty to an information charging him with conspiracy to commit health care fraud. In addition to his prison term, he was sentenced to serve three years of supervised release and ordered to pay $6,248,056 in restitution, jointly and severally with his co-conspirators.
According to documents filed in the case, Garcia conspired with others to execute a health care fraud scheme through Renew Therapy Center of Port St. Lucie LLC (Renew Therapy), a comprehensive outpatient rehabilitation facility that he helped operate. From November 2007 through August 2009, Renew Therapy submitted approximately $10,549,361 in fraudulent claims for reimbursement to Medicare for therapy services that were not legitimately prescribed and not legitimately provided to Medicare beneficiaries. As a result of those fraudulent claims, Medicare deposited approximately $6,248,056 into a Renew Therapy bank account. The fraud proceeds in that account were subsequently disbursed to various entities, including $1,847,222 to Ariguanabo Investment Group Inc. and IRE Diagnostic Center Inc. Garcia was President of Ariguanabo Investment Group and had authority over bank accounts for Ariguanabo Investment Group and IRE Diagnostic Center, both of which were shell companies. Garcia and others used this money from Renew Therapy for, among other purposes, paying kickbacks to obtain Medicare beneficiary identifying information that was used in Renew Therapy’s fraudulent reimbursement claims.
This case is being investigated by HHS-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida. This case is being prosecuted by Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov .South Florida Couple Plead Guilty to Money Laundering Involving Third-Party Payments to MexicoRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announce that Natalie Ladin, 62, and Jed Ladin, 66, both of Lauderdale by the Sea, and their company Natalie Jewelry, doing business as Golden Opportunities, located in Hallandale Beach, each pled guilty to one count of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h). Sentencing is scheduled for October 31, 2014, at 1:00 p.m. before U.S. District Judge Beth Bloom. At sentencing, the defendants each face up to 20 years in prison.
According to court documents, the defendants committed money laundering by conducting wire transfers from Natalie Jewelry to third parties in Mexico. Operating an unlicensed money transmitter business is a specified unlawful activity for money laundering, and neither Natalie Jewelry nor any of its owners or employees had such a license from the State of Florida or the Department of the Treasury. From October 2013 through January 2014, the defendants exchanged coded text messages with two co-conspirators who would drop off bags of cash at different South Florida locations and provide the defendants with a list of people who should receive wire transfers from that money. In exchange for a commission, the defendants sent money via wire transfer to approximately 21 individuals in Mexico for a total of $2,023,950.00.
Mr. Ferrer commended the investigative efforts of ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Michael Thakur.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Rosebud Man Charged and Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man charged with Assault by Striking, Beating, and Wounding and Simple Assault pled guilty to and was sentenced on July 7, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Anthony Hero, age 29, was sentenced to 231 days in custody with credit for time served and $20 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place between February 1, 2013, and February 2, 2013, when Hero and the victims were at a house party in Rosebud. After leaving the party, Hero was in a vehicle when he had a disagreement with the two victims. He assaulted both victims by striking and beating them.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
Hero was released from custody.
Rio Rancho Man Faces Federal Charges for Unlawful Firearms Possession and Drunk Driving in Santa Fe National ForestRead the Press Release
ALBUQUERQUE – Paul Henry Ortega, 45, of Rio Rancho, N.M., made his initial appearance in federal court this morning on an indictment charging him with being a felon in possession of a firearm and driving while intoxicated. Ortega remains in federal custody pending arraignment and a detention hearing which have yet to be scheduled.
The indictment, which was filed on March 26, 2014, alleges that Ortega unlawfully possessed a firearm and ammunition on Aug. 5, 2012, in Rio Arriba County, N.M. At the time, Ortega was prohibited from possessing firearms or ammunition because he previously had been convicted of a felony offense. It also charges Ortega with the misdemeanor offense of driving while intoxicated. According to the indictment, Ortega allegedly drove a vehicle in the Santa Fe National Forest on Aug. 5, 2012, while under the influence of intoxicating liquor.
Ortega was arrested yesterday on an arrest warrant that issued when he failed to comply with a summons to appear in court on arraignment on the indictment.
If convicted, Ortega faces a maximum sentence of ten years in prison on the firearms charge and up to a year in prison on the driving while intoxicated charges. The charges against Ortega are merely accusations and he is presumed innocent unless found guilty beyond a reasonable doubt.
Special Agent in Charge Robin L. Poague of the Southwestern Region of the U.S. Forest Service said, “Federal regulations authorize Forest Service officials to enter orders permitting Forest Service officers to issue federal violation notices for violations of the state motor vehicle code on National Forest System lands and roads. This ensures consistent enforcement of the motor vehicle code throughout the state and across agencies. The prosecution of Ortega on DUI charges was initiated pursuant to this authority.”
This case was investigated by the U.S. Forest Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Mexico State Police and the New Mexico Game & Fish and is being prosecuted by the U.S. Attorney’s Office.
Pierce County Woman Sentenced to Three Years for Identity Theft and Tax Refund Fraud SchemeRead the Press Release
A Pierce County woman was sentenced to three years in prison today in U.S. District Court in Tacoma for wire fraud and aggravated identity theft in a scheme that netted her more than $95,000, announced U.S. Attorney Jenny A. Durkan. BARBARA HOLLY STAHLMAN, 42, was indicted in February 2013, for a scheme in which she fraudulently claimed tax refunds using other people’s personal information. STAHLMAN has been in custody since August 2013. The Honorable Ronald B. Leighton sentenced her to three years in prison for her role in the scheme.
STAHLMAN filed 108 false electronic tax returns between 2010 and 2013, 44 of which were actually accepted and processed by the IRS. Overall, STAHLMAN claimed false refunds totaling more than $500,000. All but one of the false returns she filed was in the name of another person (one was in her own name). In the returns actually accepted and processed by the IRS, she claimed false refunds totaling $223,383. She directed that the refunds be paid into prepaid debit cards, which she directed be sent to her address and to the addresses of family members. The IRS paid $87,000 in refunds to STAHLMAN before it detected her criminal pattern, after which the IRS cut off all refunds on the remaining false returns.
In its sentencing recommendation, the United States Attorney noted not only the damage STAHLMAN did to the integrity of the IRS, but also underscored “the damage she inflicted on those whose identities she commandeered. STAHLMAN committed multiple acts of identity fraud, which has caused innocent victims to become entangled with the IRS, over returns they did not file, and refunds they never received. It will take years for them to cleanse their names of the stain of Stahlman’s fraud.”
The Justice Department’s Tax Division, in conjunction with the Internal Revenue Service and U.S. Attorneys’ Offices nationwide, has prioritized the investigation and prosecution of individuals who engage in stolen identity refund fraud. In the last year alone, the Department charged more than 880 defendants involved in stolen identity refund fraud, and the IRS reports that it resolved or closed approximately 963,000 cases involving identity theft victims.
Press contact for the U.S. Attorney’s Office is Tessa Gorman, at 206-553-7970, or [email protected].
The case was investigated by the Internal Revenue Service Criminal Investigation and was prosecuted by Assistant United States Attorney David Reese Jennings.Philadelphia Man Sentenced to 60 Years in Prison for Producing Child PornographyRead the Press Release
PHILADELPHIA - Steven Mazer, 27, of Philadelphia, was sentenced today to 60 years in prison, the statutory maximum, for production of child pornography. Mazer pleaded guilty on June 24, 2013 to two counts of production of child pornography.
In December 2011, Mazer agreed to babysit a friend’s two minor children, a two year-old and a three year-old. While he was babysitting, Mazer enticed and coerced the children to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. Mazer video recorded the sexually violent acts.
In addition to the 60-year prison term, U.S. District Court Judge Jan E. DuBois ordered a fine of $2,500, five years of supervised release, and a $200 special assessment.
The case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI) and was prosecuted by Assistant U.S. Attorney Vineet Gauri.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pediatric Oncologist Sentenced to Prison, Fined for Accessing Child PornRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO -- Christopher Edward Pelloski, MD, 40, of Upper Arlington, Ohio, was sentenced to serve 12 months and one day in prison followed by five years of supervised release for accessing peer-to-peer file sharing networks to view digital images of child pornography involving pubescent and pre-pubescent children. He was also fined $10,000.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Marlon V. Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Franklin County Sheriff Zach Scott, Upper Arlington Police Chief Brian Quinn and members of the Franklin County Internet Crimes Against Children Task Force announced the sentence handed down today by Senior U.S. District Judge James L. Graham.
According to court documents, investigators patrolling the internet in October 2012 and between March and July 2013 identified a computer at Pelloski’s residence on a peer to peer network with numerous child pornography files. The investigators executed a search warrant at Pelloski’s home on July 16, 2013 and seized numerous computers and digital media. A forensic examination of one of the computers revealed evidence of approximately 85 images of child pornography, as well as evidence that various peer-to-peer programs had been installed on the computer.
Pelloski surrendered to federal officials on July 24, 2013 after a criminal complaint was filed against him. He has been on electronic monitoring since his arrest. Pelloski pleaded guilty on November 15, 2014 to one count of accessing child pornography.
“While the defendant may not have committed acts of sexual abuse or molestation himself, the hundreds of images and videos that he downloaded and viewed involved real children suffering real abuse,” Assistant U.S. Attorney Heather Hill told the court. “The government believes that the position of trust and responsibility that the defendant was given in regards to young and vulnerable children heightens his culpability in this case.”
The Bureau of Prisons will determine a date for Pelloski to report and begin serving his sentence. He will remain on electronic monitoring until then. While he is on supervised release after serving his prison sentence, Pelloski will be required to register as a sex offender anywhere that he lives, works or goes to school.
Pelloski was a radiation oncologist at The Ohio State University Wexner Medical Center in Columbus, where he also held the title of Director of the Pediatric Radiation Oncology Program.
The Franklin County ICAC Task Force is a multi-agency effort dedicated to the fight against computer facilitated crimes against children. The following agencies are members:
Franklin County Sheriff’s Office Upper Arlington Police Department
Grove City Police Department Columbus Police Department
Grandview Heights Police Department Whitehall Police Department
Hilliard Police Department Westerville Police Department
Homeland Security Investigations U.S. Secret Service
Ohio ICAC Franklin County Prosecutor's Office
Circleville Police DepartmentThis case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims.
U.S. Attorney Stewart commended the HSI agents and other members of the ICAC Task Force for the cooperative investigation, and Assistant U.S. Attorney Heather Hill, who prosecuted the case. Stewart also acknowledged the assistance of the Ohio State University Police Department in the investigation.
Oshkosh Heroin Dealer Sentenced to Federal PrisonRead the Press Release
United States Attorney James L. Santelle, of the Eastern District of Wisconsin, announced that on July 9, 2014, Dustin J. Burdick (age: 24) of Oshkosh, Wisconsin, was sentenced to 30 months in federal prison by Chief United States District Judge William C. Griesbach. Burdick had previously entered a guilty plea to a single count of conspiracy to distribute heroin.
According to the plea agreement and other documents filed with the court, Burdick was recruited by his friend Sherman M. Threets, to act as a dealer in Threets’ heroin distribution business. In this role, Burdick sold heroin on numerous occasions to a confidential informant working on behalf of law enforcement.
In pronouncing sentence, Chief Judge Griesbach chastised Burdick for his role distributing “poison” in the Lake Winnebago area, noted the devastating effect that heroin has had throughout northeast Wisconsin, and pointed to numerous recent overdose deaths as evidence of the scourge that heroin presents in our society. In addition to the prison sentence, Burdick was ordered to spend an additional 5 years on supervised release.The case was investigated by the Lake Winnebago Area Metropolitan Enforcement Group and the Oshkosh Police Department. The case was prosecuted by Assistant United States Attorney Daniel R. Humble.
Omaha Man Sentenced to 144 Months Imprisonment on Firearm ChargesRead the Press Release
United States Attorney Deborah R. Gilg announced that Jarez Wilson of Omaha, also known as “Turk,” was sentenced on July 11, 2014, to a total of 144 months in prison by United States District Judge Joseph Bataillon. Wilson had previously pled guilty to being a felon in possession of a firearm and using a firearm during and in relation to a drug trafficking crime.
In October 2013, Wilson was arrested in a HIDTA, (High Intensity Drug Trafficking Area Program), sponsored law enforcement initiative that targeted gang violence in Omaha. During the joint investigation between the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Omaha Police Department, Wilson sold three firearms and over a quarter pound of marijuana to two different felons who were working with law enforcement as cooperating witnesses.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Omaha Police Department.
Olympia Tax Preparer Pleads Guilty to Filing False ClaimsRead the Press Release
An Olympia, Washington tax preparer pled guilty this morning, following his arraignment for a tax fraud scheme in which he falsely claimed tax refunds while victimizing his clients, announced U.S. Attorney Jenny A. Durkan. KYLE BAXTER, 31, appeared in U.S. District Court in Tacoma, charged with one count of filing a false, fictitious, or fraudulent claim, and admitting to his role in orchestrating the entire three-year scheme.
In his plea agreement, BAXTER admitted that from 2010 through 2013, he represented himself to be a provider of tax preparation services operating under the name “Baxtax.” BAXTER maintained a website for “Baxtax,” and promoted his services through advertisement in local media, although BAXTER never obtained a Preparer Tax Identification Number, ordinarily required of any person or entity that prepares tax returns for a fee. During that three-year period, BAXTER, a firefighter, filed tax returns for at least 280 people, many of whom were fellow firefighters, as well as emergency medical technicians and paramedics. In many filings, BAXTER claimed deductions and credits for which his clients were plainly ineligible, such as child tax credits for clients without children, which had the effect of increasing the refunds paid by the IRS to the clients. BAXTER provided clients paper copies of tax returns purportedly reflecting their filings. Unbeknownst to the clients, however, BAXTER actually filed returns with distorted numbers that yielded even larger refunds, and BAXTER secretly diverted significant portions of these refunds to himself. Over the course of the scheme, BAXTER stole at least $250,000 in taxpayer funds by partially diverting refund payments in this manner.
BAXTER will be sentenced by United States District Judge Robert. J. Bryan on October 3, 2014, at 10:00 a.m.
Making false and fictitious claims is punishable by up to five years in prison.
The case is being investigated by the Internal Revenue Service-Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Ehren Reynolds.
Press contact for the U.S. Attorney’s Office is Tessa Gorman at (206) 553-7970 or [email protected].Odenton Man Sentenced to Prison for Laundering More Than $1.5 Million in Scheme to Steal Waste Vegetable OilRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Anthony Jean-Claude, age 40, of Odenton, Maryland today to 18 months in prison followed by three years of supervised release for laundering over $1.5 million, in connecting with a scheme to steal waste vegetable oil. Judge Motz also entered an order requiring Jean-Claude to pay restitution and forfeiture of $1,586,747.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Chief James W. Johnson of the Baltimore County Police Department; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.“Jean-Claude’s actions were motivated by pure greed as evidenced by the more than $1.5 million in laundered fraud proceeds he received while perpetuating a waste vegetable oil scheme,” said Thomas J Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “IRS Criminal Investigation is committed to unraveling money laundering schemes such as this, where individuals attempt to conceal the true source of their money. Today’s sentencing shows IRS-CI, in conjunction with our law enforcement partners, will continue to bring cases like these to justice.”
Waste collection businesses contract with local restaurants to collect waste vegetable oil which is used to make bio-diesel fuel or processed as an additive for animal feed. Waste collection businesses place recycling containers behind the restaurants with which they have contracts. When the containers are full, the businesses collect the oil using a vacuum truck.According to his plea agreement, from May through October 2010, Jean-Claude and a friend stole waste vegetable oil from restaurants in Maryland and Virginia using a tow truck owned by his friend. Jean-Claude and his friend stored the stolen oil at a warehouse near Waterview Avenue in Baltimore County, then sold the oil to out-of-state oil companies.
At the end of October, Jean-Claude’s friend developed a legitimate waste vegetable oil collection company named Waste Not Inc. The friend purchased a vacuum truck, hired salesmen to assist him, and eventually obtained 650 contracts to collect waste vegetable oil from restaurants. From June through October, 2011, Jean-Claude’s friend collected the oil pursuant to the contracts and sold the oil to Jean-Claude.
In May 2011, Jean-Claude used a straw purchaser to buy a truck which was titled in the name of Waste Not. The truck was used to steal waste vegetable oil from restaurants that did not have a collection contract with Waste Not. The driver of that truck was caught stealing waste vegetable oil in July 2011.
In late 2011, Jean-Claude met R.F. during a renovation project at Jean-Claude’s home. Jean-Claude requested that R.F. lease a large warehouse facility to collect, process and sell waste vegetable oil. The owner of Waste Not took both his legitimate waste vegetable oil and the stolen oil to the facility, located at 1701 Leland Avenue in Middle River. Jean-Claude then sold the waste vegetable oil to fuel companies in Pennsylvania and elsewhere. The proceeds of these transactions were directed back to Jean-Claude through a bank account in the name of Rafxcel Services, which account was held by both R.F. and Jean-Claude.
Jean-Claude subsequently used the straw purchaser to buy another truck in October 2011. A conspirator used the truck to steal waste vegetable oil from 20 locations in Baltimore City and Baltimore County. The conspirator then took the stolen oil to the Leland Avenue facility. From January 5, 2012 through October 1, 2012, approximately $1,586,747 was deposited in the Rafxcel account for the sale of waste vegetable oil to companies in Maryland, Pennsylvania and elsewhere.
The operations manager at the Leland Avenue facility received checks from Jean-Claude in the name of the manager’s wife, which were drawn on the Rafxcel business account. Jean-Claude directed the manager to cash the checks, use a portion of the cash for the operations of the Leland Avenue facility, and give the remainder of the cash back to Jean-Claude.
United States Attorney Rod J. Rosenstein praised the Baltimore County Police Department and IRS – Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Gregory R. Bockin, who prosecuted the case.
Multi-agency Investigation into Heroin Trafficking Conspiracy Leads to Prison Sentence for McKees Rocks ManRead the Press Release
PITTSBURGH – Marcus Battles, a resident of McKees Rocks, Pa., was sentenced to 20 months in prison for conspiring to distribute heroin, United States Attorney David J. Hickton announced today.
Battles, 27, was sentenced by United States District Judge David S. Cercone. Judge Cercone also imposed a six-year term of supervised release to follow the prison sentence.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Federal Bureau of Investigation and the Pennsylvania Attorney General’s Office led the multi-agency investigation of this case that also included the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Moon Township Police Department, the North Fayette Police Department, the Pittsburgh Bureau of Police, the Allegheny County Sheriff’s Office, the Pennsylvania State Police, the McKees Rocks Police Department, the Cranberry Township Police Department, the McKeesport Police Department, and the Wilkinsburg Police Department.
Middleboro Man Pleads Guilty in Enticement ChargeRead the Press Release
BOSTON – A Middleboro man pleaded guilty today two counts of coercion and enticement of a minor.
Keith Gage, 43, pleaded guilty to coercion and enticement of a minor and attempted coercion and enticement of a minor. Gage admitted that he persuaded a 14-year-old girl he met on the Internet to meet with him in person and engage in sexual intercourse. On more than one occasion, Gage traveled to the girl’s town in Massachusetts, and engaged in sexual intercourse with her. Thereafter, Gage attempted to arrange another meeting with the minor for the purpose of engaging in sexual intercourse with her. However, at this point Gage was communicating with an undercover federal agent.
Under the plea agreement, should the Court accept the plea, Gage will be sentenced to 13 to 15 years in prison, five years of supervised release, a fine and restitution to be determined by the Court, forfeiture, and an order that Gage have no contact directly or indirectly with the victim during the period of the incarceration and supervised release. With this conviction, Gage would also be required to register as a sex offender.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
Michigan Man Sentenced to Prison for the Valentine’s Day Robbery of Bradford National Bank in HighlandRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Ramsey Z. Fakhouri, 22, of Troy, Michigan, was sentenced today in federal district court in East St. Louis for Bank Robbery.
Chief Judge David R. Herndon sentenced Fakhouri to 78 months in federal prison, to be followed by 3 years of supervised release, and a $100 special assessment. The charges relate to the robbery of the Bradford National Bank in Highland, Illinois, on Valentine’s Day this year.
During Court hearings, the following facts about the case were revealed. Fakhouri and a co-defendant lived in Michigan. But Fakhouri had a girlfriend who worked at the bank in Highland. Fakhouri had met his girlfriend a couple of years earlier at the Indiana Bible College. While talking with the girlfriend long-distance one day, Fakhouri put the call on speaker phone so that the co-defendant could hear the girlfriend unwittingly give details about bank’s procedures in stocking its ATM, which was located outside and away from the bank building.
Fakhouri and the co-defendant decided to rob the bank employee who filled the ATM. One of Fakhouri’s motives for the bank robbery was to buy a $13,000 engagement ring for his girlfriend.
Fakhouri and his co-defendant brought with them two Airsoft pistols that looked like real semi-automatic handguns. They drove all night from Michigan to Illinois. They then waited for the bank to open and for an employee to re-stock the ATM. While they waited, Fakhouri’s girlfriend called him to wish him good morning. Fakhouri watched as his girlfriend pulled onto the bank lot.
When an employee came out to fill the ATM, the co-defendant, masked and armed with what looked like a gun, forced the employee to give him the cash from the ATM. “This is the look of terror,” said the prosecutor, as he showed the Court a bank security photo of the employee’s face as she cowered before the armed co-defendant.
The co-defendant returned to the car and Fakhouri drove the car away from the bank. Later, the co-defendant drove as Fakhouri counted the cash – about $16,000 for him but only about $10,000 for the co-defendant.
The unsuspecting girlfriend soon texted Fakhouri about the bank robbery and about her own fears – she had watched helplessly from inside the bank while her fellow employee had been robbed.
Fakhouri decided to return by bus to comfort his girlfriend. She and her father met him at midnight at the St. Louis bus station. The co-defendant drove Fakhouri’s car back to Michigan. Fakhouri stayed with the girlfriend’s family, keeping his portion of the money in his gym bag at their house.
The girlfriend received an email on her cell phone that contained photos of the alleged bank robbers. Fakhouri tried to explain that although one of the images was of him, he had nothing to do with the bank robbery. He rode with his girlfriend to the Highland Police Department to let the police know that he had nothing to do with the robbery. The police did not believe his story, so they put him under arrest. As they emptied his pockets, they found $766.91.
The co-defendant was arrested in Michigan; the Airsoft gun was in his backpack.
Further investigation indicated that both Fakhouri and the co-defendant had Airsoft pistols that the co-defendant had provided for purposes of the bank robbery.
Portions of a victim statement from the bank employee who was robbed were read at sentencing. This led the judge to remark that the statement was “One of the most descriptive I’ve ever read and one of the most effective. The victim-impact statement does a wonderful job of describing the treachery of bank robbery. Bank robbery is a devastation almost beyond description.”
The case was investigated by members of the Federal Bureau of Investigation and the Highland Police Department. The case was prosecuted by Assistant U.S. Attorney Stephen B. Clark.