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27 August 2014
Philadelphia Political Consultant Pleads Guilty for His Role in Attempting to Conceal Campaign Finance-Related FraudRead the Press Release
Political consultant Gregory Naylor, 66, of Philadelphia, pleaded guilty today to making false statements to federal agents and misprision of a felony in connection with his role in attempting to conceal two campaign finance-related fraud schemes.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania, Special Agent in Charge Edward Hanko of the FBI’s Philadelphia Field Office and Special Agent in Charge Akeia Conner of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement. The plea was entered by U.S. District Court Judge Harvey Bartle III of the Eastern District of Pennsylvania.
According to court documents, the charges stem from Naylor’s participation in two campaign finance-related schemes initiated by a long-time friend and former employer, identified in the information as Elected Official A. In the first scheme, Naylor helped conceal the theft of federal grant funds and private charitable funds that were used to repay an illegal campaign debt incurred by Elected Official A during a 2007 campaign for elected office.
Specifically, Naylor was aware that large amounts of money from an unexplained source were being spent on Elected Official A’s campaign, and Naylor helped to conceal the source of those funds by preparing a false invoice for services rendered by his consulting firm. Naylor subsequently learned that Elected Official A and others orchestrated the theft of federal grant funds to repay the outstanding balance of the campaign debt, and he agreed to the falsification of campaign finance reports to further conceal Elected Official A’s activities.
Also according to court documents, in the second scheme, Naylor conspired with Elected Official A to pay down portions of the college debt of Elected Official A’s son using federal and local campaign funds. Some of the payments originated directly from the local campaign fund, and some were illegally sourced from Elected Official A’s federal campaign election committee and passed through the local campaign fund account to Naylor. Naylor made approximately $22,000 in improper payments between August 2007 and April 2011 at Elected Official A’s request. Naylor also falsely claimed on IRS forms that the payments made towards the college debt were earned income to Elected Official A’s son for services rendered as an independent contractor to Naylor’s consulting firm. When confronted by federal agents in investigative interviews about the payments, Naylor lied on two occasions and repeated his cover story that the son of Elected Official A was an independent contractor working for his political consulting firm.
Sentencing is scheduled for Dec. 2, 2014.
The case was investigated by the FBI and the IRS-CI with assistance provided by the NASA Office of the Inspector General. This case is being prosecuted by Assistant U.S. Attorney Paul L. Gray of the Eastern District of Pennsylvania and Trial Attorney Eric L. Gibson of the Criminal Division’s Public Integrity Section.Philadelphia Political Consultant Pleads Guilty in Attempt to Conceal Campaign Finance-Related FraudRead the Press Release
PHILADELPHIA – Political consultant Gregory Naylor, 66, of Philadelphia, pleaded guilty today to making false statements to federal agents and misprision of a felony in connection with his role in attempting to conceal two campaign finance-related fraud schemes. According to court documents, the charges stem from Naylor’s participation in two campaign finance-related schemes initiated by a long-time friend and employer, identified in the information as Elected Official A. In the first scheme, Naylor helped conceal the theft of federal grant funds and private charitable funds that were used to repay an illegal campaign debt incurred by Elected Official A during a 2007 campaign for elected office.
Specifically, Naylor was aware that large amounts of money from an unexplained source were being spent on Elected Official A’s campaign, and Naylor helped to conceal the source of those funds by preparing a false invoice for services rendered by his consulting firm. Naylor subsequently learned that Elected Official A and others orchestrated the theft of federal grant funds to repay the outstanding balance of the campaign debt, and he agreed to the falsification of campaign finance reports to further conceal Elected Official A’s activities.
The charges were announced by United States Attorney Zane David Memeger of the Eastern District of Pennsylvania, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, FBI Special Agent in Charge Edward Hanko and IRS Criminal Investigations Special Agent-in-Charge Akeia Conner. The plea was entered by U.S. District Court Judge Harvey Bartle III of the Eastern District of Pennsylvania.
Also according to court documents, in the second scheme, Naylor conspired with Elected Official A to pay down portions of the college debt of Elected Official A’s son using federal and local campaign funds. Some of the payments originated directly from the local campaign fund, and some were illegally sourced from Elected Official A’s federal campaign election committee and passed through the local campaign fund account to Naylor. Naylor made approximately $22,000 in improper payments between August 2007 and April 2011 at Elected Official A’s request. Naylor also falsely claimed on IRS forms that the payments made towards the college debt were earned income to Elected Official A’s son for services rendered as an independent contractor to Naylor’s consulting firm. When confronted by federal agents in investigative interviews about the payments, Naylor lied on two occasions and repeated his cover story that the son of Elected Official A was an independent contractor working for his political consulting firm.
The case was investigated by the FBI and the Internal Revenue Service-Criminal Investigations with assistance provided by the NASA Office of the Inspector General. This case is being prosecuted by Assistant U.S. Attorney Paul L. Gray and Trial Attorney Eric L. Gibson of the Criminal Division’s Public Integrity Section.
U.S. District Court Judge Harvey Bartle III scheduled a sentencing hearing for December 2, 2014. Naylor faces a maximum possible statutory sentence of 13 years in prison, a fine of up to $500,000, and up to three years of supervised release.Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Petersburg Cocaine Trafficker Sentenced to over 17 Years in Federal PrisonRead the Press Release
RICHMOND, Va. – Shawn Rives, 33, of Petersburg, Virginia, was sentenced yesterday to 210 months in prison, followed by four years of supervised release, for possession with intent to distribute crack cocaine.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and John I. Dixon III, Petersburg Chief of Police, made the announcement after sentencing by U.S. District Judge James R. Spencer.
Rives was indicted on Oct. 16, 2013 on two counts of possession with intent to distribute cocaine base, commonly known as “crack,” and three counts of possession with intent to distribute cocaine hydrochloride. When Rives failed to appear at his arraignment on the charges on Nov. 7, 2013, the court issued a warrant for his arrest. Rives remained a fugitive until Feb. 25, 2014, when the U.S. Marshal Service Fugitive Task Force, in conjunction with the FBI, arrested Rives at an apartment complex in Richmond, Virginia. According to an affidavit filed in the case, as the Fugitive Task Force agents made entry into the apartment, Rives kicked through the drywall of a closet in the residence, squeezed through the wall, and entered the adjacent apartment through the bedroom closet, where he attempted to hide.
Rives pleaded guilty on May 22, 2014 to distributing crack cocaine. According to court documents, law enforcement officers executed search warrants in March and October 2012 at residences in Petersburg where Rives was staying, or that were associated with him. At both locations, authorities recovered cocaine, chemicals used to prepare cocaine for sale, digital scales, baggies for distribution, and U.S. currency from the sale of cocaine. In addition, in June 2012, during a search incident to the arrest of Rives, officers recovered cocaine and $2,472 from Rives, along with additional cocaine and a digital scale from a vehicle.
In a statement of facts filed with his guilty plea, Rives admitted that he distributed at least five kilograms of cocaine hydrochloride and between one kilogram and 2.8 kilograms of cocaine base during 2013.
This case was investigated by the FBI’s Richmond Field Office and the Petersburg Bureau of Police. Assistant U.S. Attorney Angela Mastandrea-Miller prosecuted the case.A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:13-cr-175.
Over 450 Schools Expected to Participate in Student Pledge Against Gun Violence DayRead the Press Release
United States Attorney Kenneth Polite announced that on Wednesday, October 15, 2014, members of the U. S. Attorney's Office for the Eastern District of Louisiana (the “Office”) and their law enforcement partners will meet with students across Southeast Louisiana as part of his Office’s first district-wide Student Pledge Against Gun Violence Day.
Middle and high school students will sign a voluntary pledge promising that they will never take a gun to school, will never resolve a dispute with a gun, and will use their influence to prevent friends from using guns to resolve disputes. Elementary school children will make a simpler commitment, pledging that if they see a gun they will not touch it, they will assume that any gun they see might be loaded, and they will tell a teacher or a trusted adult.
In coordination with the Department of Justice’s Project Safe Neighborhoods program, the Student Pledge Against Gun Violence is a national program that recognizes the role that young people, through their own decisions, can play in reducing gun violence. This campaign against youth gun violence culminates each October in a Day of National Concern about Young People and Gun Violence. Students from around the country will join together in pledging to do their part to end gun violence. Over 10 million students nationwide have signed the pledge since its inception in 1996.
U.S. Attorney Polite stated that his Office began using the pledge during the 2013-14 school year, with approximately 2500 students signing the pledge at seven schools. Because of the outstanding response from school leaders and students, the Office decided to expand the initiative district-wide to include all schools in all 13 parishes, including Assumption, Jefferson, Lafourche, Plaquemines, Orleans, St. Bernard, St. Charles, St. James, St. John the Baptist, St. Tammany, Tangipahoa, Terrebonne, and Washington. "Our Office is pleased to take this opportunity to reach out to students, engage in a dialogue about gun violence and the importance of making right choices, and encourage them to become peacemakers of our time," stated U.S. Attorney Polite.
In addition to providing the pledges, the U.S. Attorney’s Office will coordinate with other state, local, and federal law enforcement agencies to provide speakers at several schools to talk to students about what they can do to reduce gun violence in their communities.
Oshkosh Man receives 10 Year Sentence for Lead Role in Heroin ConspiracyRead the Press Release
United States Attorney James L. Santelle, of the Eastern District of Wisconsin, announced that on August 26, 2014, Sherman Maurice Threets (age: 29) of Oshkosh, Wisconsin, was sentenced to 10 years in federal prison by Chief United States District Judge William C. Griesbach. Threets 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, Threets was the lead actor in an Oshkosh area heroin distribution ring with ties to distributors in Chicago, Illinois. Threets was previously convicted of Possession with Intent to Distribute Cocaine in Fond Du Lac County in 2005 and again in Winnebago County in 2007. He was on state supervision for both crimes at the time of his federal indictment.
In pronouncing sentence, Chief Judge Griesbach noted the clear danger that Threets presented to the community, especially by shifting his drug dealing business from cocaine to highly addictive heroin which has been responsible for an increasing number of overdose deaths in northeast Wisconsin. In addition to the prison sentence, Threets was ordered to spend an additional 10 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.
Officials Announce Latest Results of Ongoing Effort to Combat Heroin EpidemicRead the Press Release
HARRISONBURG, VIRGINIA – Officials from the United States Attorney’s Office, the Virginia State Police, members of the Northwest Virginia Regional Drug Task Force, and the Drug Enforcement Administration announced today the most recent results of their ongoing fight against the growing heroin epidemic in the Western District of Virginia. Among those results was the sentencing of a pair of Strasburg residents who brought enough heroin into that Shenandoah County town to provide each resident of Strasburg with a dose of heroin.
The heroin epidemic, which in recent years has seen the number of overdose deaths and injuries spike in the northwest part of the district, continues to be a top priority for law enforcement officials in the region, and across the Commonwealth.
Today in District Court, Dwayne Fletcher and Megan Wooddell were sentenced for their participation in a multi-ounce heroin distribution conspiracy in and around Strasburg, Virginia. The conspiracy, which operated for several months and obtained large quantities of heroin from Philadelphia, Pennsylvania, brought enough of the drug into Strasburg to provide each of the town’s 6,398 residents with a dose of heroin.
This morning, Fletcher was sentenced to 87 months in federal prison. Wooddell was sentenced to 60 months in federal prison.
Officials also announced the sentencing of Dean Allen Roberson, 32, of Stephens City, Virginia. Roberson was previously convicted of distributing heroin which resulted in an overdose injury to another person. In that instance, Roberson traveled to Baltimore, Maryland and bought heroin. On March 21, 2014, he sold part of that heroin, and it led to the overdose of a woman in Stephens City. The victim was taken to the hospital shortly after overdosing and medical personnel concluded that if they had not intervened when they did, the overdose would have been fatal. Roberson was also convicted for his role in a conspiracy to distribute methamphetamine.
Today in District Court, Roberson was sentenced to 15 years of federal incarceration.
The United States Attorney’s Office for the Western District of Virginia, the Northwest Virginia Regional Drug Task Force which includes the Virginia State Police and the Drug Enforcement Administration continue to use all available resources to combat the epidemic rise of heroin abuse and overdose rates in the region.
In recent years, this cooperative group of law enforcement agencies has taken a proactive approach to address the rise in the use of heroin.
“Slowing the tide of heroin abuse has become an urgent priority for law enforcement,” United States Attorney Timothy J. Heaphy said today. “We must continue to vigorously pursue heroin traffickers and others who profit from the addiction of others. As we pursue this targeted enforcement, we must also support ongoing education, prevention and treatment initiatives. Like so many other issues plaguing our communities, we cannot simply arrest our way out of this problem. If we want to make real progress in our efforts to end heroin abuse, we must pursue a holistic, multi-pronged approach.”
“The significance of these arrests is measured in the total number of lives potentially saved,” said Captain Gary T. Settle, Commander of the Virginia State Police Bureau of Criminal Investigation’s Culpeper Field Office. “Through the persistent investigative efforts of the Northwest Virginia Regional Task Force, local, state and federal law enforcement across this region remain committed to protecting our residents from a heroin epidemic that has become a very deadly reality for so many families.”
“Heroin abuse equals death. Once this drug takes hold, it shatters dreams and ends lives. The DEA tirelessly works with our schools and communities to educate our youths and adults, alike, of the perils of heroin use,” said Special Agent in Charge Karl C. Colder of the DEA’s Washington Field Office. “Today’s sentencings are the result of DEA’s strong partnership with local and state law enforcement agencies in investigating and prosecuting criminal drug organizations that significantly affect our communities. DEA will continue to stand with our state and local authorities, dedicating all manpower and resources at our disposal to combat these ruthless heroin trafficking organizations.”
In addition to enforcement efforts, the cooperative agencies have taken a number of steps to educate the public about the dangers of heroin use and abuse. Over the course of the past 12 months, the agencies have hosted three heroin summits, which brought together community members, school leaders, prevention professionals and treatment officials for frank discussions about the heroin issue and how it can be addressed going forward.
“These initial meetings are just the beginning of what our communities need to do in addressing the heroin problem,” U.S. Attorney Heaphy said today. “We need communities hit by heroin abuse to continue this prevention work going forward. We will only be successful if we keep working as a team, across jurisdictional lines.”
The investigations of these cases were conducted by the Northwest Virginia Regional Drug Task Force, which includes the Virginia State Police, and the Drug Enforcement Administration. The Task Force includes law enforcement from the counties of Frederick, Clarke, Shenandoah, Warren and Page as well as the cities and towns of Winchester, Front Royal and Strasburg.
Assistant United States Attorney Elizabeth Wright prosecuted the cases for the United States.
Office Manager of Moberly, Missouri Funeral Home Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – BEVERLY SUSAN RENE SMITH was sentenced to six months of home confinement and five years of probation on charges involving her theft of approximately $176,000 from Million-Taylor Funeral Home. These funds were intended to cover customer’s funeral expenses. She was also ordered to pay restitution of $175,705.
According to court documents, Smith was hired by the original owner of the Million-Taylor Funeral Home (MTFH) in Moberly. James Taylor, Sr. hired Smith in 2001 as the office manager, a job she held from 2001 to June 2012. Her position included payroll expenses and expenses to vendors for the costs of funerals. She also received payment for funerals, which she recorded in a financial ledger. Additionally, she was required to report all of MTHF’s financial transactions to their accounting firm, Federated Funeral Directors of America (Federated). Smith also had access to MTHF’s banking, general fund and escrow accounts.
To pay for funeral expenses of a client, MTHF first used money from its general operating fund to cover these expenses. Then Smith was supposed to recoup payment for the funeral expenses from the representatives or family members of the deceased, from the life insurance of the deceased and/or from pre-needs insurance accounts of the deceased. When the payments were received, Smith was to deposit them back into the general fund. If she was not able to recoup full payment for funeral expenses of a client, she reported this information to Federated and informed them that the account was a bad account and that they should write it off as no further effort would be made to recoup payment for these expenses. This way she was able to conceal that she had stolen some client payments made for funeral expenses, which she deposited into the escrow account.
While James Taylor, Sr. operated MTHF, he allowed customers to pay money for their expected funeral expenses before they died. MTHF deposited this money into MTHF’s escrow account. He and Smith were the only employees who had access to the escrow account. After James Taylor, Sr. died in 2006, Smith concealed the existence of the escrow account from other MTHF employees. On several occasions Smith took the payments that were sent to MTHF for funerals, and instead of depositing them into the general fund, she deposited the funds into the escrow account. Smith was able to withdraw funds from the escrow account undetected to use for her personal use, including the purchase of clothing and jewelry. She hid the withdrawals by manipulating the financial records of MTHF.
Smith, Higbee, MO, pled guilty in May to one felony count of wire fraud, and appeared in St. Louis today for sentencing before United States District Judge Rodney Sippel.
The case was investigated by the Federal Bureau of Investigation and the Missouri State Highway Patrol. Assistant United States Attorney Anthony Franks handled the case for the U.S. Attorney’s Office.Nez Perce Tribal Member Sentenced for Assaulting OfficersRead the Press Release
COEUR D'ALENE - Robert Wesley Warden, 49, of Kamiah, Idaho, was sentenced today in federal court to 10 months in prison for assaulting three law enforcement officers, U.S. Attorney Wendy J. Olson announced. He went to trial and was convicted on May 7, 2014.
During the trial, Chief U.S. Magistrate Judge Candy W. Dale heard evidence that on September 15, 2012, a distressed child called 911 and reported that Warden was beating her mother. The child’s mother also spoke to the 911 dispatcher. She reported that Warden threw her down and began kicking her in the face. The 911 dispatcher contacted the Nez Perce Tribal Police and a Kamiah Marshal to respond to the emergency.
Judge Dale heard evidence that the first person to arrive at the scene was a Kamiah Marshal. The Kamiah Marshal observed swelling and bruising to the mother’s face and learned that Warden had fled the scene. The Marshal stayed with the victims, waiting for Nez Perce Tribal Police to arrive from another city. Before Nez Perce Tribal Police arrived, Warden returned to the residence. The Kamiah Marshal met Warden outside and told him he was being detained until the arrival of the Nez Perce Tribal Police. Warden refused to cooperate and tried to pass the Kamiah Marshal in the direction of the woman and her child. The trial evidence showed that a struggle ensued and that Warden attempted to bite the Kamiah Marshal.
Nez Perce Tribal Police arrived shortly after the struggle between Warden and the Kamiah Marshal ended. They arrested Warden and placed him in a patrol car, where he began kicking the inside of the patrol car. When Nez Perce Tribal Police officers attempted to restrain Warden he attempted to kick an officer and bite another. Warden also spit on both officers. Warden was later charged by federal indictment with five counts of assault.
During the trial Warden asserted that the Kamiah Marshal lacked jurisdiction to detain him. The Court held that the defendant’s jurisdictional allegation was not a defense to the assault on the Kamiah Marshal and that the Kamiah Marshal reasonably responded to the 911 call.
The case was investigated by the Kamiah Marshals, Nez Perce Tribal Police, and Federal Bureau of Investigation.
New York Woman Sentenced to Two Years in Prison for Stealing More Than $130,000 in Two Schemes Carried Out in D.C., Maryland and New YorkAdmits Collecting Fraudulent Unemployment Benefits, as Well as Stealing from Former EmployerRead the Press Release
WASHINGTON – Sakinah Smith, 27, of New York, N.Y., was sentenced today to two years in prison for carrying out a pair of schemes, including one in which she used stolen personal identification information to collect more than $80,000 in fraudulent unemployment benefits, and another in which she stole more than $50,000 from a former employer.
The sentencing was announced by U.S. Attorney Ronald C. Machen Jr., Timothy A. Gallagher, Acting Assistant Director in Charge of the FBI’s Washington Field Office; Bill Jones, Special Agent in Charge for the Washington Regional Office of the U.S. Department of Labor’s Office of Inspector General - Office of Labor Racketeering and Fraud Investigations, and Blanche L. Bruce, Interim Inspector General for the District of Columbia.
Smith pled guilty in May 2014 in the U.S. District Court for the District of Columbia to one count of wire fraud. She was sentenced by the Honorable Senior Judge Thomas F. Hogan. Upon completion of her prison term, Smith will be placed on three years of supervised release. She also was ordered to pay over $132,000 in restitution. While on supervised release, Judge Hogan ordered that Smith not hold any employment involving the handling of money.
According to a statement of offense filed as part of the guilty plea, Smith created an events planning service in 2009 in Washington, D.C. She created a website for “Saki Mone Events Management” and posted employment advertisements on Craigslist. Potential applicants were asked to provide personal information, including dates of birth and social security numbers.
Smith then used this personal information to fraudulently request unemployment benefits in the names of 17 individual applicants. Between 2009 and 2012, Smith obtained $80,111 in fraudulent unemployment benefits from the District of Columbia, Maryland and New York. The benefits, in the names of the 17 applicants, were deposited into Smith’s own financial accounts.
In a second scheme, Smith admitted that she fraudulently wired about $52,174 from an employer’s bank account to accounts she created for herself. This activity took place from November 2009 through May 2010, while Smith was working for a temporary employment agency in Washington, D.C.
In announcing the sentence, U.S. Attorney Machen, Acting Assistant Director in Charge Gallagher, Special Agent in Charge Jones, and Interim Inspector General Bruce commended the work of those who investigated the case from the FBI’s Washington Field Office, the Labor Department’s Inspector General’s Office, and the District of Columbia Office of the Inspector General. They also thanked the New York State Department of Labor – Office of Special Investigations; the Maryland Department of Labor, Licensing and Regulation – Division of Unemployment Insurance; the Virginia Employment Commission; the District of Columbia Department of Employment Services, and the Burlington, N.C. Police Department for providing assistance in the investigation.
They acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Diane Lucas, who assisted on forfeiture issues; Paralegal Specialists Donna Galindo and Angela Lawrence; Victim/Witness Advocate Yvonne Bryant; Intelligence Specialist Sharon Johnson, and former Intern Abigail Pierce. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Philip A. Selden, who prosecuted the matter.
14-185New Orleans Man, Christopher M. Schwab, Sentenced to 20 Years in Prison for Producing and Distributing Child PornographyRead the Press Release
U.S. Attorney Kenneth Polite announced that CHRISTOPHER M. SCHWAB, age 25, a resident of New Orleans, was sentenced today for four counts of producing child pornography involving four different minor victims, one count of distributing child pornography and one count of receiving child pornography.
United States District Chief Judge Sarah Vance sentenced SCHWAB to serve 20 years incarceration in the Bureau of Prisons, to be followed by 25 years of supervised release. Upon his release from incarceration, SCHWAB will have to register as a sex offender.
According to court documents, in August 2013, SCHWAB was arrested by special agents with the United States Department of Homeland Security, Homeland Security Investigations (“HSI”) after they determined that SCHWAB was responsible for sending images depicting the sexual exploitation of children. SCHWAB has been in custody since his arrest.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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 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.
This case was investigated by Homeland Security Investigations, the Jefferson Parish Sheriff’s Office, and the Kenner Police Department. The prosecution of this case was handled by Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.
Moore Man Pleads Guilty to Conspiracy (Methamphetamine Distribution)Read the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that MICHAEL ALLEN COOPER, age 39, of Moore, Oklahoma, pled guilty to Drug Conspiracy, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A).
The charge arose from an investigation by the District 16 District Attorney’s Drug Task Force, the U.S. Drug Enforcement Administration, and the United States Postal Service. The defendant was indicted in June 2014.
The Indictment alleged that from in or about June 2013 until on or about April 9, 2014, in the Eastern District of Oklahoma and elsewhere, the defendant, did willfully and knowingly combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to knowingly and intentionally possess with intent to distribute and distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report.
The statutory range of punishment is Life imprisonment and/or up to a $10,000,000.00 fine.
First Assistant United States Attorney Doug Horn represented the United States.
Montana Man Sentenced for Counterfeit United States CurrencyRead the Press Release
COEUR D'ALENE - Chadwin King, 28, of Butte, Montana, was sentenced yesterday to nine months in prison followed by three years of supervised release for passing counterfeit U.S. currency, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered King to pay a $10,842 in restitution. He pleaded guilty to the charge on May 7, 2014.
According to the plea agreement, on December 12, 2013, Spokane Police located King in a blue Chrysler van in the Econo Lodge parking lot in Spokane, Washington. Inside the van were cameras, a GPS unit, printers, checks, clothing, tools, and drug paraphernalia. Police also found completed and under production counterfeit currency. King admitted that he counterfeited United States currency.
The case was investigated by U.S. Secret Service (USSS), Kootenai County Sheriff’s Office and Spokane Police Department.
Montana Groups Receive Federal Grant to Fight Domestic and Sexual Violence in the BakkenRead the Press Release
Fort Peck Reservation Gets Money for Special Assistant U.S. Attorney
HELENA - On August 26, 2014, Associate Attorney General Tony West announced $3 million dollars in grants from the Office on Violence Against Women (OVW) to increase local and tribal capacity to prosecute crimes of violence against women and provide services to victims of sexual assault, domestic violence and stalking in the Bakken Region of North Dakota and Montana. Of the five groups awarded grants, two are from Montana: Fort Peck Assiniboine and Sioux Tribes and the Montana Coalition Against Domestic and Sexual Violence. The Assiniboine and Sioux Tribes of the Fort Peck Indian Reservation will also receive a three-year $450,000 grant to support the salary, travel, and training costs of a tribal prosecutor, who will be cross-designated to serve as a tribal Special Assistant United States Attorney (SAUSA) in the District of Montana U.S. Attorney's Office.
This news comes at a meaningful time in Montana," said U.S. Attorney Michael Cotter. "Communities in and around the Bakken are witnessing its impact, and this grant provides critical resources, including mental health counseling, legal assistance, and other resources to prevent violence against women and help victims recover."
OVW's Bakken Region special initiative launched in April 2014 and is the first large scale project targeting resources to support the expansion of services to victims of sexual assault, domestic violence and stalking as well as aid the local criminal justice system in responding to these crimes in the Bakken region.
With Justice Department funding, these grantees will be able to enhance responses to domestic violence, dating violence, sexual assault, and stalking, and expand mental health assistance, advocacy, legal assistance, prevention education, sexual assault forensic examiner programs, Sexual Assault Response Teams, and law enforcement training. The grants are part of the Justice Department's ongoing commitment to protecting women from violence and strengthening the capacity of communities to respond to domestic and sexual violence.
Minnesota Professor Pleads Guilty to Enticing A Louisiana Minor to Engage in Sexual ActivityRead the Press Release
MONROE, La. –A Minnesota professor pleaded guilty to contacting a minor in Union Parish in order to start a sexual relationship, U.S.Attorney Stephanie A. Finley announced today.
Woody Dale Branton, 63, of Minneapolis, Minn., entered a conditional guilty plea before U.S. Magistrate Judge Karen L. Hayes for one count of enticing a minor into criminal sexual activity. The plea will become final when accepted by U.S. District Court Judge Robert G. James. According to evidence presented at the guilty plea, Branton, a professor at the University of Minnesota, and a 15-year-old girl exchanged thousands of messages on Facebook from October 2013 through December 1, 2013. Many of the messages were sexual in nature, and he also asked her to send explicit pictures of herself. From November 29, 2013 to December 1, 2013, Branton attempted to set up a meeting with the girl in Louisiana and purchased a plane ticket to Shreveport.
Branton faces 10 years to life in prison, up to five years of supervised release, and a fine of up to $250,000. He must also register as a sex offender. A sentencing date of January 5, 2015 was set.
The FBI and the Union Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice 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, 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, visit www.justice.gov/psc.
Those concerned may also leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Monroe FBI office number is (318) 387-0773.Mescalero Apache Man Sentenced to Federal Prison for Statutory Rape ConvictionRead the Press Release
ALBUQUERQUE – Norman Stan Chee, 22, a member of the Mescalero Apache Nation, was sentenced today in federal court in Las Cruces, N.M., to 30 months in federal prison followed by two years of supervised release for his statutory rape conviction. Chee will be required to register as a sex offender when he completes his prison sentence.
Chee was arrested in Oct. 2013, based on a criminal complaint alleging that he knowingly engaged in a sexual act with a child between 12 and 16 years of age. On Jan. 28, 2014, Chee entered a guilty plea to a felony information charging him with engaging in a sexual act with a minor who was at least four years younger than Chee. According to the information, Chee committed the crime on Feb. 21, 2012, at a location within the Mescalero Apache Reservation in Otero County, N.M.
According to court filings, the BIA initiated an investigation into Chee in July 2012, when officers responded to a call regarding an alleged assault and saw Chee and the victim, who was 15 years old, fleeing from the site of the assault. During an interview, the victim admitted having engaged in sexual activity with Chee. Chee also was interviewed and admitted that he engaged in sexual acts with the victim. Chee stated that his sexual relationship with the victim began in Feb. 2012, and admitted knowing that the victim was 15 years old.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services. The case was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U .S. Attorney’s Las Cruces Branch Office as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Meridian Women Sentenced for Oxycodone DeliveriesRead the Press Release
BOISE – Kristen Rast, 44, and Brittany Tillema, 25, both of Meridian, Idaho, were sentenced this week in federal court for distributing controlled substances, U.S. Attorney Wendy J. Olson announced. Sentencing was pronounced by U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
This morning, Judge Lodge sentenced Rast to12 months and one day in prison, a $1,000 fine, and four years of supervised release. According to the plea agreement, on four occasions in June through August of 2012, Rast knowingly and intentionally distributed to an undercover police officer a total of 356 pills of 80 mg Oxycontin, for a total of $10,700. Oxycontin contains oxycodone, a Schedule II narcotic and controlled substance. She had obtained the controlled substances by prescription from a provider.
On Monday, Judge Lodge sentenced Tillema to a sentence of credit for time served, three years of supervised release, 30 days of home detention, and 100 hours of community service. According to the plea agreement, on or about October 18, 2012, Tillema knowingly and intentionally distributed to an undercover police officer, 32 pills of 80 mg Oxycontin for $1,000.
Both defendants will have a number of restrictions during supervision, including: limitations on access to multiple medical providers and pharmacies, requirements for drug testing, and a prohibition from consuming alcohol.
This investigation was initiated by the Meridian Police Department and investigated by the Drug Enforcement Administration (DEA) led Tactical Diversion Squad which is comprised of law enforcement personnel from the DEA, Ada County Sheriff’s Office, Boise Police 2 Department, Idaho State Police, Meridian Police Department, Nampa Police Department and U.S. Department of Health and Human Service’s Office of Inspector General.
McLaughlin Man Charged with Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse of a Minor.
Zaken Spotted Horse, age 19, was indicted on August 19, 2014. He appeared before U.S. Magistrate Judge William D. Gerdes on August 21, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in custody and/or a $250,000 fine, a mandatory minimum of 5 years, up to life, of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between April 20, 2014, and May 12, 2014, Spotted Horse knowingly engaged in, and attempted to engage in, a sexual act with a juvenile female who was at least four years younger than Spotted Horse.
The charge is merely an accusation and Spotted Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Spotted Horse was released on bond pending trial. A trial date has not been set.
McLaughlin Man Charged with Assaulting, Resisting and Impeding A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Kirk Flying Horse, age 41, was indicted on August 19, 2014. He appeared before U.S. Magistrate Judge William D. Gerdes on August 21, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about July 25, 2014, Flying Horse forcibly assaulted a federal law enforcement officer with a dangerous weapon while the officer was engaged in the performance of his official duties.
The charge is merely an accusation and Flying Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Flying Horse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Massachusetts Resident Pleads Guilty in “Black Money” SchemeRead the Press Release
PROVIDENCE, R.I. – Saah Johnson, 33, of Fall River, Mass., pleaded guilty in U.S. District Court in Providence, R.I., today to his participation in a “black money” scheme which defrauded a Massachusetts man of $100,000, announced United States Attorney Peter F. Neronha and Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service.
Black money schemes defraud individuals by persuading them that large quantities of banknote-sized paper is U.S. currency which has been dyed black, typically to avoid detection by customs agents. The victim is persuaded, with the prospect of sharing in the proceeds, to supply real currency in order to facilitate the removal of the black covering that overlays the supposedly genuine black currency. In reality, except for a few genuine currency bills used to advance the scheme, the “black money" is usually black construction paper.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Johnson admitted to the court that in October 2011, after several months of discussions, he and another person persuaded the victim to meet with them at a Providence hotel and to provide them with $100,000 in cash to process large quantities of “black money,” with a promised return of $300,000 in cash. Several hours after the “chemical process” to remove the black covering from several stacks of “black money” began, and Johnson and the other person had left the hotel room, the victim discovered that the stacks of “black money” were, in reality, stacks made up of mostly black construction paper. The $100,000 in cash provided by the victim had been stolen.
Johnson, who is detained in federal custody since his arrest on February 11, 2014, is scheduled to be sentenced on November 25, 2014.
Causing the interstate transportation of $5,000 or more in execution of a scheme to defraud is punishable by a statutory penalty of up to 10 years in federal prison, a fine of up to $250,000 and term of up to 3 years supervised release.
The case is being prosecuted by Assistant U.S. Attorney Richard W. Rose.
The Seekonk Police Department, Rhode Island Fire Marshal’s Office and the Rhode Island Department of Environmental Management provided assistance to the U.S. Secret Service in the investigation of this matter.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Maryland Man Pleads Guilty to Falsifying Employee Retirement Plan Documents to Avoid Contributing to Benefit Plans<br />Read the Press Release
An owner of an electrical contracting company pleaded guilty today to falsifying disclosure documents required under the Employee Retirement Income Security Act (ERISA), by intentionally under-reporting hours worked by employees to avoid contractually required contributions to employee benefit plans.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland, Special Agent in Charge Bill Jones of the Department of Labor Office of Inspector General, Office of Labor Racketeering and Fraud Investigations for the Washington, D.C. Regional Office and Director Mark Machiz of the Department of Labor’s Employee Benefits Security Administration Philadelphia Regional Office made the announcement.
At the plea hearing, Michael E. Sewell, 50, of Street, Maryland, admitted that the union agreement between his company, MESCO Inc., and the International Brotherhood of Electrical Workers Local 24 required him to make monthly contributions to seven employee health, welfare and pension benefit plans, and to file monthly remittance reports with the administrators of those plans.
Beginning in January 2009, however, Sewell began paying some wages earned by MESCO employees from the payroll of a second company he owned, Michael E. Sewell and Associates Inc., and failed to report those wages in monthly remittance reports to the administrator of the benefit plans. In addition, Sewell failed to make the required contributions to the employee benefit plans for those unreported wages. As a result, Sewell failed to contribute over $199,000 to the employee benefit plans. Sentencing is scheduled for Oct. 30, 2014.
This case was investigated by the Department of Labor and is being prosecuted by Trial Attorney Vincent Falvo Jr. of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Martin J. Clarke of the District of Maryland.Man Found Guilty of Drug Paraphernalia ConspiracyRead the Press Release
United States Attorney Deborah R. Gilg announced that John Ways, Jr., 48, of Omaha, Nebraska, was found guilty of Conspiracy to Sell and Offer for Sale Drug Paraphernalia, Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances, Conspiracy to Commit Money Laundering, and being a Felon in Possession of Ammunition, following a 13-day jury trial.
The evidence presented at the trial showed Ways, from approximately February 2010 to December 2012, operated head shops in Nebraska and Iowa called Exotica. The stores sold, among other things, drug paraphernalia and certain controlled substances which the witnesses referred to as bath salts, herbal incense, K2, and aromatherapy.
The evidence in support of the money laundering conspiracy showed that Ways laundered the proceeds from the sales of these items by conducting financial transactions at various banks and credit unions in the Omaha area.
The evidence in support of the felon in possession of ammunition count showed that Ways, a previously convicted felon, possessed 800 rounds of 5.56 mm ammunition at one of his two residences.The jury also returned a Special Verdict forfeiting to the United States approximately $1,125,000.00 of funds, various items of drug paraphernalia, ammunition, gun safes, two vehicles, several computers and related equipment and Ways’ corporation, NKOSI, Inc.
Ways faces a combined possible maximum sentence, on all four counts, of 55 years in prison. Ways’ sentencing is scheduled for November 20, 2014.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the Omaha Police Department, Nebraska State Patrol, Lincoln Police Department, Douglas County Sheriff’s Office, Council Bluffs Police Department, South Sioux City Police Department, University of Nebraska at Lincoln Police Department, and Drug Enforcement Administration.
Lawsuit Filed in Manhattan Federal Court Seeks Forfeiture of Seven Dutchess County Properties Allegedly Purchased Using Proceeds of Long-Running Human Smuggling OperationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), announced today the filing in Manhattan federal court of a civil forfeiture action targeting seven properties alleged purchased in Dutchess County, New York, by Greek national NIKOLAOS PANAGIOTOPOULOS using the proceeds of a long-running human smuggling operation.
Manhattan U.S. Attorney Preet Bharara said: “With today’s civil complaint seeking forfeiture of seven Dutchess County properties allegedly purchased with the proceeds of a sprawling, lengthy human smuggling operation, we continue our work to take the profit out of crime whenever it touches the Southern District of New York. I would like to thank ICE HSI for helping our office to carry out that objective on this case.”
ICE HSI Special-Agent-in-Charge James T. Hayes, Jr., said: “These seizures are an important step in our efforts to dismantle the alleged worldwide human smuggling operation run by Panagiotopoulos. Criminal organizations should be on notice that the United States will not allow proceeds of criminal activity from anywhere in the world to be laundered in our country. HSI New York partners with HSI Attaché offices in Athens and around the world to work closely with U.S. Attorney’s offices to strip criminal organizations of their illicitly obtained assets.”
According to the allegations contained in the Complaint filed today in Manhattan federal court:
Since 2013, ICE HSI, in coordination with Greek law enforcement authorities, investigated the human smuggling and visa fraud activities of Greek national NIKOLAOS PANAGIOTOPOULOS. PANAGIOTOPOULOS is believed to have participated in human smuggling, passport fraud, and visa fraud since at least 2003. As part of this scheme, PANAGIOTOPOULOS facilitated the smuggling of foreign nationals, principally Albanian citizens, into the United States, Australia, the United Kingdom, and Canada, in exchange for payments of thousands of dollars per smuggled person. He received payment for his illegal services principally in cash or money orders that he would then launder through bank accounts in the United States and, ultimately through the purchase of real estate, including real estate in Dutchess County, New York.
PANAGIOTOPOULOS has recently been arrested and charged by Greek authorities with crimes relating to false applications for passports, and is currently awaiting trial in Athens.
The Complaint includes claims for the forfeiture of seven properties located in the Town of Wappinger, New York, each of which is alleged to have been purchased with PANAGIOTOPOULOS’s fraud proceeds. The Complaint further seeks civil money laundering penalties in the amount of at least $373,297.93.
Mr. Bharara thanked ICE HSI for their work on the investigation.
This civil forfeiture and money laundering case is being overseen by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorney Andrew C. Adams is in charge of the suit.
Las Cruces Man Arrested for Using the Internet to Make a ThreatRead the Press Release
ALBUQUERQUE – Zachary Milton Hess, 19, of Las Cruces, N.M., made his initial appearance in Las Cruces federal court yesterday on a criminal complaint charging him with using the Internet to make a threat or to maliciously convey false information. Hess remains in custody pending a detention hearing scheduled for August 28, 2014.
The criminal complaint alleges that on May 27, 2014, an individual anonymously threatened to “shoot [his] college campus up in 3 days” and identified his school as “NMSU” while “chatting” on an Internet chat website. According to the criminal complaint, another individual saw the threat and posted a screen shot of the threat onto NMSU’s FaceBook page. Thereafter, the threat was passed onto law enforcement, including the FBI. The FBI’s investigation revealed that the IP Address for the Internet connection from which the threat was posted was subscribed to Hess’ residence. An examination of Hess’s computer revealed that the computer allegedly had been used to visit the website on which the threat was posted.
The criminal complaint alleges that NMSU expended significant resources in responding to the threat. Among other things, NMSU officials informed approximately 18,774 students, facility, staff and private citizens about the anonymous threat; advised students, faculty and staff to depart the campus; and shut down its new student registration process. NMSU allegedly lost approximately 1000 staff hours in responding to the threat.
If convicted on the charge in the criminal complaint, Hess faces a statutory maximum penalty of ten years in prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of the FBI and the NMSU Police Department, and is being prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga of the U.S. Attorney’s Las Cruces Branch Office.
Lapwai Man Sentenced for Violating Sex Offender Registration and Notification ActRead the Press Release
COEUR D'ALENE - Jacob Russell Jackson, 54, of Lapwai, Idaho, was sentenced yesterday to 21 months in prison followed by a lifetime of supervised release for violating the Sex Offender Registration and Notification Act, U.S. Attorney Wendy J. Olson announced. Jackson pleaded guilty to the charge on May 7, 2014.
According to statements made in court, in 1996 Jackson was convicted and sent to federal prison for two counts of sexually abusing a child. This conviction required Jackson to register as a sex offender. Jackson admitted that between December 2012, and April 2014, he did not register as a sex offender in Idaho.
The case was investigated by U.S. Marshals Service and brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Laguna Pueblo Man Pleads Guilty to Assault Charge Arising out of Drive-By Shooting at Acoma Pueblo HomeRead the Press Release
ALBUQUERQUE – Preston Chino, 21, a member and resident of Laguna Pueblo, pleaded this morning to a federal assault charge. Under the terms of his plea agreement, Chino will be sentenced to 96 months in prison followed by a term of supervised release to be determined by the court.
Chino was one of four members of Laguna Pueblo charged with assault and firearms offenses arising out of a drive-by shooting at an Acoma Pueblo home. Chino and his co-defendants, Cameron Joseph Kasero, 21, Joseph Edward Lucero, 24, and Andrea Carrillo, 22, were indicted in July 2013, for allegedly assaulting two men and a woman on Dec. 9, 2012, by discharging firearms at a residence located in Acoma Pueblo in Cibola County, N.M.
This morning, Chino admitted aiding and abetting Kasero and Lucero in assaulting the three victims by providing shotguns and ammunition to Kasero and Lucero. Chino also admitted driving Kasero and Lucero to the victims’ Acoma Pueblo home where they discharged the shotguns multiple times in the direction of the residence.
Chino is in federal custody and will remain detained pending his sentencing hearing, which has yet to be scheduled.
Co-defendants Kasero, Lucero and Carrillo have entered not guilty pleas to the charges in the indictment. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Albuquerque office of the FBI, the Laguna Agency of the BIA’s Office of Justice Services, the Acoma Pueblo Tribal Police and the Pueblo of Laguna Tribal Police Department. Assistant U.S. Attorney Kyle T. Nayback is prosecuting the case.
Knoxville Man Sentenced to Three Years in Prison for Defrauding His Elderly Great AuntRead the Press Release
KNOXVILLE, Tenn. – On Aug. 27, 2014, Mark Kevin Tudor, 42, of Knoxville, Tenn., was sentenced to serve 36 months in federal prison by the Honorable Pamela L. Reeves, U.S. District Judge for the Eastern District of Tennessee. Tudor pleaded guilty in April 2014 to federal wire fraud charges.
As part of the sentence imposed, upon his release from prison Tudor will be on supervised release for a period of three years. The Court further ordered Tudor to pay the victim $266,227.80 in restitution.
The investigation determined that Tudor abused a position of trust after having been granted a power-of-attorney by his 93 year-old great aunt, who suffered from a visual disability and needed assistance with her financial affairs. Without his great aunt’s permission or authority, Tudor systematically depleted the victim’s bank and credit union account and life insurance policy. In total, Tudor stole over $267,000 from the victim before the fraud was discovered, which nearly depleted the victim’s life savings. According to a written statement by the victim read in court, when the victim discovered the fraud only $347 remained in her credit union account, which had held over $200,000 before the theft.
U.S. Attorney William C. Killian emphasized the importance of the prosecution of fraud committed against the elderly. “Senior citizens are among the most vulnerable members of our society to financial crimes. Those who take advantage of the trust placed in them by the elderly, by defrauding them in violation of federal law, will be investigated and prosecuted,” said Killian.
This case was jointly investigated by the Knoxville Police Department and the U.S. Postal Inspection Service. Assistant U.S Attorney Matthew Morris represented the United States.
Justice Department Requires Divestiture in Tyson Foods Inc. Acquisition of the Hillshire Brands CompanyRead the Press Release
The Department of Justice announced today that it will require Tyson Foods Inc. to divest Heinold Hog Markets, its sow purchasing business, in order to proceed with its $8.5 billion acquisition of The Hillshire Brands Company. The department said that, without the required divestiture, the transaction would have combined companies that account for more than a third of sow purchases from U.S. farmers, thereby likely reducing competition for purchases of sows from farmers.
Three state attorneys general – of Illinois Iowa, and Missouri – joined the department in the civil lawsuit filed today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive concerns alleged in the department’s lawsuit.
“Farmers are entitled to competitive markets for their products. Today’s proposed settlement will help ensure that hog breeders in the United States will continue to receive the benefits of vigorous competition when selling sows,” said Bill Baer, Assistant Attorney General in charge of the Antitrust Division. “Without the divestiture, the proposed acquisition would have eliminated a significant customer for farmers’ sows and likely would have resulted in less competition in this important agricultural market.”
Sows are sold by farmers for processing into sausage. Both Tyson’s Heinold Hog Markets and Hillshire buy sows from U.S. farmers. Heinold Hog Markets buys sows from farmers, sorts the sows at buying stations and resells and trucks the sows to sausage producers. Hillshire buys sows directly from farmers, which it then makes into sausage sold under the Jimmy Dean and Hillshire Farm brands. The acquisition of Hillshire by Tyson Foods Inc. would combine two major purchasers of sows from farmers in the United States and eliminate the benefit farmers have received from the competition between Hillshire and Tyson’s Heinold Hog Markets.
Under the terms of the proposed settlement, Tyson must divest Heinold Hog Markets in its entirety to a buyer approved by the Antitrust Division.
Tyson Foods Inc. is a Delaware corporation with its principal place of business in Springdale, Arkansas. Tyson is one of the world’s largest meat companies. It produces, distributes and markets chicken, beef, pork and prepared food products. Tyson Hog Markets Inc., a subsidiary of Tyson and Tyson Fresh Meats Inc., buys and resells sows through its Heinold Hog Markets division. In 2013, Tyson had total revenues of approximately $34.4 billion; Heinold Hog Markets had overall revenues of approximately $270 million.
The Hillshire Brands Company is a Maryland corporation with its principal place of business in Chicago, Illinois. Hillshire is a manufacturer and marketer of brand name food products for the retail and foodservice markets, including sausage, hot dogs and luncheon meats. Its brand names include Jimmy Dean, Ball Park and Hillshire Farm. Hillshire’s total revenues were approximately $3.9 billion for the year ended June 29, 2013.
As required by the Tunney Act, the proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to William H. Stallings, Chief, Transportation, Energy, and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 5th Street, N.W., Suite 8000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the proposed final judgment upon finding that it is in the public interest.Justice Department Files Suit Against City of St. Anthony Village over Denial of Permit for MosqueRead the Press Release
Acting Assistant Attorney General Molly Moran for the Justice Department’s Civil Rights Division and U.S. Attorney Andrew M. Luger for the District of Minnesota today announced the filing of a lawsuit against the city of St. Anthony Village for an alleged violation of the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA). Specifically, the lawsuit seeks injunctive relief requiring St. Anthony Village to allow the Abu Huraira Islamic Center to maintain a worship space in the basement of the St. Anthony Business Center.
“Religious freedom is one of our most cherished rights, and there are few aspects of that right more central than the ability of communities to establish places for collective worship,” said Acting Assistant Attorney General Moran.
“Freedom of religion and the right to peaceably assemble are enshrined for all Americans in the Bill of Rights,” said U.S. Attorney Luger. “This office conducted a thorough investigation of the circumstances surrounding the City Council’s decision to deny Abu Huraira the right to worship in the St. Anthony Business Center. We aggressively sought to resolve this matter without a lawsuit. However, it is a solemn duty of all United States Attorneys to uphold the Constitution. The people of Abu Huraira have a right to peaceably assemble – they have a right to practice their religion, and it’s our job to enforce that right.”
The complaint, filed in the U.S. District Court in Minneapolis, alleges that the St. Anthony Village City Council treated an application for a conditional use permit to assemble in the St. Anthony Business Center filed by Abu Huraira on less than equal terms as other, non-religious, conditional use permits for assembly. The denial of the necessary permit for the worship center unlawfully disfavored a religious use, because the light industrial zone where the building is located allowed “assemblies, meeting lodges and convention halls,” including a union hall with banquet facilities available to be rented by the public.
In addition to Abu Huraira’s treatment on less than equal terms to similarly situated secular organizations, the denial of Abu Huraira’s permit substantially burdens its members in practicing their faith. Abu Huraira members’ ability to exercise their religion is limited by their current worship site options, including, but not limited to the fact that members in the northern Twin Cities are burdened from praying together based on the length of time it takes to travel to the worship centers in south Minneapolis. Moreover, prayer space at locations in south Minneapolis are too small to accommodate members, many of whom often have to pray in hallways or entryways, and hold multiple prayer sessions in shifts to accommodate crowds.
After conducting a search for adequate prayer space lasting nearly three years, Abu Huraira entered into a purchase agreement for the St. Anthony Business Center. The business center is an ideal location for Abu Huraira because it is centrally located, has a basement measuring approximately 11,600 square feet and has ample parking. The business center is in the “light industrial” zone of St. Anthony, conditional uses for which included “assemblies, meeting lodges, and convention halls.”
In February 2012, after consulting St. Anthony Village officials, Abu Huraira applied for a conditional use permit for assembly in the light industrial zone. It was denied on June 12, 2012, by a St. Anthony Village City Council vote of 4-1, despite the professional St. Anthony City Planning Staff recommending approval, despite the St. Anthony Village City Planning Commission recommending approval and despite members of Abu Huraira attending each meeting of the Council and Planning Commission to address any concerns held by the city.
The lawsuit filed by the department seeks to enforce Abu Huraira’s constitutional rights under RLUIPA by requiring St. Anthony Village to grant the conditional use permit to allow Abu Huraira to assemble for the purpose of worship.
Assistant U.S. Attorneys Bahram Samie, Ana Voss, and Greg Brooker as well as Justice Department attorneys from the Civil Rights Division are representing the United States in this matter.
RLUIPA, enacted in 2000, contains multiple provisions prohibiting religious discrimination and protecting against unjustified burdens on religion exercise. Persons who believe that they been subjected to religious discrimination in land use or zoning may contact the Housing and Civil Enforcement Section of the Justice Department’s Civil Rights Division at 1-800-896-7743. More information about RLUIPA, including a report on the first ten years of its enforcement, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php .
Indictment: Two Topekans Robbed Wendy'sRead the Press Release
TOPEKA, KAN. – Two Topeka residents were indicted in federal court Wednesday on robbery charges, U.S. Attorney Barry Grissom said.
George Christopher Walton, Jr., 37, who is in custody in the Shawnee County Jail, and Tashjaun Desanic Walton, 18, who is in custody in the Shawnee County Jail, are charged with one count of robbery. In addition, George Walton is charged with one count of brandishing a firearm during a robbery, and one count of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred Aug. 4, 2014, in Topeka, Kan.
The indictment alleges that on Aug. 4, 2014, the defendants robbed the Wendy’s restaurant at 728 Southwest Topeka Boulevard in Topeka. The indictment alleges that George Walton brandished a firearm during the robbery.
Upon conviction, the crimes carry the following penalties: Robbery: A maximum penalty of 20 years in federal prison and a fine up to $250,000.
Brandishing a firearm: A penalty of not less than seven years and a fine up to $250,000.
Unlawful possession of a firearm following a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.
The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.OTHER INDICTMENTS
James W. Duke, 51, currently of Converse, Texas, is charged with three counts of aggravated abuse of a child, two counts of sexual abuse of a minor, two counts of sexual exploitation of a child, and one count of transporting child pornography across state lines. The crimes are alleged to have occurred at various times from January 1997 to December 2000 on the Fort Riley military installation.
Upon conviction, the crimes carry the following penalties: Aggravated sexual abuse of a child: A maximum penalty of life in federal prison and a fine up to $250,000 on each count.
Sexual abuse of a minor: A maximum penalty of 15 years and a fine up to $250,000 on each count.
Sexual exploitation of a child: Not less than 10 years and not more than 20 years and a fine up to $250,000 on each count.
Transporting child pornography: A maximum penalty of five years and a fine up to $250,000.The FBI investigated. Assistant U.S. Attorney Christine Kenney and Special Assistant U.S. Attorney Robin Graham are prosecuting.
Alfredo Rodriguez, 31, Kansas City, Kan., is charged in a superseding indictment with one count of conspiracy to distribute 5 kilograms or more of cocaine and one count of attempting to intimidate a witness in a federal criminal case. The drug trafficking crime is alleged to have occurred from April 2011 to December 2012 in Wyandotte County, Kan. The other crime is alleged to have occurred July 7, 2014.
If convicted, he faces a penalty of not less than 10 years and not more than life and a fine up to $10 million on the conspiracy charge, and a maximum penalty of 20 years and a fine up to $250,000 on the other counts. The FBI investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.
Kevin Smith, 31, Richmond, Kan., Justin Ingram, 29, Ottawa, Kan., and Elizabeth Diane Lewis, 33, Ottawa, Kan., are charged with one count of conspiracy to possess with intent to distribute methamphetamine. In addition, Ingram and Lewis are charged with one count of maintaining a residence at 707 S. Ash in Ottawa, Kan., in furtherance of drug trafficking; and Ingram is charged with one count of unlawful possession of a firearm by a user of controlled substances. The crimes are alleged to have occurred at various times from Jan. 1, 2014, to Aug. 12, 2014.
The defendants initially were charged in a criminal complaint filed Aug. 13, 2014, in U.S. District Court in Kansas City, Kan. The complaint alleged that during the investigation Ingram told another person that he had Semtex explosives and wanted to blow up a house where the mother of a detective with the Ottawa Police Department lived.
Upon conviction, the crimes carry the following penalties: Conspiracy: Not less than 10 years and not more than life and a fine up to $10 million.
Unlawful possession of a firearm by a user of controlled substances: A maximum penalty of 10 years and a fine up to $250,000.
Maintaining a drug involved premises: A maximum penalty of 20 years and a fine up to $250,000.The Kansas Bureau of Investigation investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.
Noe Beltran, 33, Wichita, Kan., Cecilia Gomez, 49, Wichita, Kan., German Fernandez-Hernandez, 52, Wichita, Kan., and Ramona Gomez-Hernandez, 43, are charged with drug trafficking. The crimes are alleged to have occurred in 2014 in Sedgwick County, Kan.
Beltran is charged with one count of conspiracy to distribute methamphetamine and one count of possession with intent to distribute 21 pounds of methamphetamine.Gomez is charged with one count of conspiracy to distribute methamphetamine, count of possession with intent to distribute 21 pounds of methamphetamine, and one count of conspiracy to distribute two pounds of methamphetamine.
Fernandez-Hernandez is charged with one count of conspiracy to distribute two pounds of methamphetamine and five counts of distributing methamphetamine.
Gomez-Hernandez is charged with one count of possession with intent to distribute 21 pounds of methamphetamine.Upon conviction, the crimes carry the following penalties: Conspiracy: Not less than 10 years in federal prison and a fine up to $10 million.
Possession with intent to distribute 21 pounds of methamphetamine: Not less than 10 years and a fine up to $4 million.
Distribution of methamphetamine: A maximum penalty of 20 years and a fine up to $1 million; or a penalty of at least five years and not more than 40 years and a fine up to $5 million, depending on the quantity.The Drug Enforcement Administration investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment Charges West Chester Man with Possession of Child PornographyRead the Press Release
Stephen Paradis, Jr., 23, of West Chester, PA, was charged today by Information with possession of child pornography, announced United States Attorney Zane David Memeger. The information alleges that on or about December 10, 2013, Paradis, Jr., possessed one or more visual depictions of minors engaging in sexually explicit conduct.
If convicted the defendant faces a maximum possible sentence of ten years’ imprisonment and a three-year period of supervised release.
The case was investigated by U.S. Immigration & Customs Enforcement Homeland Security Investigation (HSI), the Delaware County District Attorney’s Office, Pennsylvania Internet Crimes Against Children Task Force (PA ICAC), the National Center for Missing and Exploited Children (NCMEC), and is being prosecuted by Assistant United States Attorney Roberta Benjamin.
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, 215-861-8525HP Executive Assistant Fuels Million Dollar Spending Spree with Stolen Company FundsRead the Press Release
San Diego, CA - Holli Dawn Coulman, who served as an executive to a Hewlett Packard (“HP”) Senior Vice President from 2008 to May 2012, admitted defrauding the company of nearly $1 million through a series of fraudulent employee reimbursements. According to documents filed in federal court, Coulman fraudulently justified the payments of international trips, country club expenses, and high-end clothing purchases by falsely claiming them as legitimate business expenses.
Coulman began working at HP in San Diego in approximately June 2000, and served as an executive assistant. In this position, she received a number of American Express corporate credit cards, which were to be used solely for authorized and approved business expenses. Coulman, however, used the credit cards to support an extravagant and luxurious lifestyle, including spending: (1) in excess of $100,000 at the La Costa Resort Spa; (2) more than $43,000 at the Lodge at Pebble Beach and Casa Palmero at Pebble Beach; (3) thousands of dollars in airfare for trips to Hawaii and Europe; (4) thousands of dollars purchasing items at the Apple Store; (5) more than $33,000 in BTO Sports motocross gear; and (6) thousands of dollars in charges to Neiman Marcus and Nordstroms. In addition, Coulman admitted using the company credit cards to pay for more than $350,000 in expenses accrued by her brother’s custom painting business in Colorado.
As revealed in court pleadings, Coulman went to great lengths to cover up her theft of company funds. Among other things, she intercepted emails sent from HP program administrators that questioned her various personal expenditures. After intercepting the incriminating emails, Coulman would often delete them before they could be reviewed by her boss, a senior vice president. Occasionally, she would fabricate responses indicating that the expenses had been authorized by her boss, even going so far as to submit fabricated supporting documentation, receipts, and invoices. In total, Coulman stole approximately $954,292.31 from HP through her scheme.
United States Attorney Duffy added, “This type of brazen corporate theft directly harms the shareholders of the company and the public at large due to increases in the cost of goods sold by companies. I commend the FBI for its work in uncovering this theft.”
Coulman entered her guilty plea before U.S. Magistrate Judge Jill L. Burkhardt, and is scheduled for sentencing on before U.S. District Judge Marilyn Huff on December 1, 2014.
DEFENDANT Case Number: 14CR2424-H Holli Dawn Coulman Age: 43 CHARGESTitle 18, United States Code, Section 1343 (Wire Fraud)
Maximum penalty: 20 years of custody; $250,000 Fine (or twice the gross loss from the offense)INVESTIGATING AGENCY
Federal Bureau of Investigation*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Gretna Woman, Marcia Peterson, Pleads Guilty to Defrauding Government AgenciesRead the Press Release
U.S. Attorney Kenneth Polite announced today that MARCIA PETERSON, 61, a resident of Gretna, Louisiana, pleaded guilty to two counts of theft of government funds and one count of wire fraud.
According to court documents, PETERSON was the executive director and accountant for CDC 58:12, a non-profit with a stated mission of transforming communities by creating opportunities in housing, education, health, and economic development. During the relevant time period, CDC’s primary sources of funding were federal grants from the U.S. Department of Education and the U.S. Department of Housing and Urban Development. These grants were administered by the Louisiana Department of Education, the Housing Authority of New Orleans, and the City of New Orleans. The funds were to be used only for approved purposes, including supportive services for residents of a public housing development, summer programs for children, and educational services.
From 2011 through 2013, PETERSON improperly withdrew approximately $87,000 of these federal funds from CDC’s bank account and spent the money on gambling and other personal expenses. Additionally, in August 2012, while working as CDC’s director and accountant, PETERSON submitted a fraudulent claim for unemployment insurance benefits to the Louisiana Workforce Commission. From August 2012 to December 2012, PETERSON made weekly certifications in which she falsely represented that she was unemployed, resulting in the Louisiana Workforce Commission providing PETERSON approximately $4,199.
PETERSON faces a maximum term of 20 years on the wire fraud charge and 10 years imprisonment on each of the theft of government funds charges. Each count also carries a possible fine of up to $250,000 and up to three years of supervised release following any period of imprisonment. Sentencing is scheduled for December 17, 2014, before U.S. District Court Judge Martin L.C. Feldman.
The case was investigated by special agents of the U.S. Department of Housing and Urban Development - Office of Inspector General, the U.S. Department of Education - Office of Inspector General, the U.S. Department of Labor - Office of Inspector General, and the Federal Bureau of Investigation. The prosecution is being handled by Assistant United States Attorney Chandra Menon.
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Georgia Man Sentenced to 120 Months for Crack Cocaine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On Aug. 27, 2014, Micah Antwan Still, 25, of Covington, Ga, was sentenced by the Honorable J, Ronnie Greer, U.S. District Court Judge, to serve 120 months in federal prison. Still had previously been convicted of conspiracy to distribute crack cocaine.
In 2012 law enforcement began investigating a large-scale crack cocaine conspiracy originating out of Atlanta. As part of the conspiracy, numerous individuals, including Still, trafficked kilogram quantities of powder cocaine to Johnson City. Still facilitated the procurement of a series of rental cars in Georgia which were used to transport and distribute the drugs. Upon arrival in Johnson City, the drugs were manufactured into crack cocaine and then distributed throughout the area. The resulting drug sale proceeds were subsequently used to procure additional powder cocaine and repeat the cycle of distribution.
Individuals involved in this conspiracy who have already been sentenced include: Tavares Lashaun Dalton, 36, of Covington, Ga., who was sentenced to serve 240 months in prison; Marcus Lavoya Holliman, 36, of Atlanta, who was sentenced to serve 210 months in prison; Devin Deonte Blalock, 20, of Jonesboro, Ga., who was sentenced to serve 120 months in prison; Kwanza Tarveze Worthy, 20, of Atlanta, who was sentenced to serve 120 months in prison; Don Juan Glass, Jr., 22, of Atlanta, who was sentenced to serve 120 months in prison; Uhamma Castillo Delgado, II, 24, of Johnson City, Tenn., who was sentenced to serve 120 months in prison; Demario Jenard Serchion, 29, of Atlanta, who was sentenced to serve 77 months in prison; and Cody Alan Sherrill, 22, of Jonesborough, Tenn., who was sentenced to serve 41 months in prison. Five others remain to be sentenced in Greeneville, while still others are awaiting prosecution for their involvement in the conspiracy.
This long term investigation was the product of a partnership between the Johnson City, Tennessee Police Department; the First Judicial District Drug Task Force; and the Drug Enforcement Administration. Assistant United States Attorney Nick Regalia represented the United States.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Four Plead Guilty to Child Exploitation Offenses in FresnoRead the Press Release
FRESNO, Calif. — Four men have pleaded guilty to child exploitation offenses in separate cases in federal court this week, U.S. Attorney Benjamin B. Wagner announced.
Las Vegas Attorney Admitted He Traveled to Bakersfield to Find Minor Victims
Charles Max Pollock, 43, of Las Vegas, pleaded guilty today to two counts of travel with intent to engage in illicit sexual conduct. In August 2013, he made two trips from Las Vegas to Bakersfield and rented a hotel room. He encouraged minors to engage in sexually explicit conduct and engaged in at least one illegal sexual act with one minor victim. Pollock is licensed to practice law in Nevada and California. He is scheduled to be sentenced on November 17, 2014, by U.S. District Judge Lawrence J. O’Neill. Pollock faces a maximum sentence of 30 years in prison, a $250,000 fine, and a lifetime term of supervised release.This case is the product of an investigation by the Federal Bureau of Investigation and the Bakersfield Police Department. Assistant U.S. Attorney David Gappa is prosecuting the case. Case 1:14-cr-139 LJO
Defendant Arrested in Mexico After Anonymous Tip
Michael David Wilson, 30, of Delano, pleaded guilty today to one count of receipt and distribution of child pornography. An indictment against Wilson was filed on July 25, 2013, and a warrant was issued for his arrest. He is a U.S. citizen and was featured on an Immigration and Customs Enforcement (ICE) Operation Predator App as wanted for the outstanding warrant. Someone in Mexico provided an anonymous tip that Wilson had been living in Mexicali, Mexico. He was arrested in Mexicali on April 2, 2014, and turned over by Mexican immigration authorities to Homeland Security Investigation agents in Calexico. He is scheduled to be sentenced on December 1, 2014, by Senior U.S. District Judge Anthony W. Ishii. Wilson faces a maximum sentence of 20 years prison, a $250,000 fine, and a lifetime term of supervised release.This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney David Gappa is prosecuting the case. Case 1:13-cr-00293 AWI
Fresno Man Pleads Guilty to Receiving and Distributing Child Pornography
Mathew Shawn Broadway, 31, of Fresno, pleaded guilty today to one count of receipt and distribution of child pornography. Several of the more than 600 images depicted prepubescent minors. He is scheduled to be sentenced by Judge O’Neill on November 17, 2014. Broadway faces up to 20 years in prison, with a mandatory minimum sentence of five years, a $250,000 fine, and up to a lifetime of supervised release. This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Central Valley Internet Crimes Against Children taskforce. Assistant U.S. Attorneys Megan A. S. Richards and Christopher D. Baker are prosecuting the case. Case 1:13-cr-268 LJOKern County Man Pleads Guilty to Possessing Child Pornography
Richard Leroy James, 50, of Caliente, pleaded guilty on Monday to one count of possession of child pornography. He admitted that he had received the images via the Internet. Several of the more than 600 images depicted prepubescent minors. James is scheduled to be sentenced on November 3, 2014, before Judge Ishii. James faces a maximum sentence of 20 years in prison, a $250,000 fine, and a lifetime term of supervised release. Assistant U.S. Attorney David Gappa is prosecuting the case. Case 1:13-cr-348 AWIFor each case, the actual sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.Former Studio Assistant to Jasper Johns Pleads Guilty in Manhattan Federal Court to Engaging in $6.5 Million Scheme to Sell Stolen Johns WorksRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that JAMES MEYER, a former assistant to artist Jasper Johns, pled guilty in Manhattan federal court in connection with his sale of 22 works that he stole from Johns’ studio in Sharon, Connecticut. MEYER pled guilty today before U.S. District Judge J. Paul Oetken.
Manhattan U.S. Attorney Preet Bharara said: “James Meyer made millions by stealing and selling the valuable artworks that he was entrusted with maintaining. With his guilty plea today, Meyer will now have to pay for that decision.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made at today’s guilty plea:
MEYER was a studio assistant for Johns for over 25 years, and was responsible for, among other things, maintaining a studio file drawer containing pieces of art that were not yet completed by Johns and not authorized by Johns to be placed in the art market.
Between September 2006 and February 2012, MEYER removed 22 individual pieces of art from the studio file drawer he was responsible for maintaining, and from elsewhere in Johns’ studio, and transported those pieces from the studio in Sharon to an art gallery located in Manhattan for the purpose of selling those works without Johns’ knowledge or permission. MEYER represented both to the owner of the gallery (the “Gallery Owner”) and to potential purchasers that these pieces had been given to him as gifts by Johns when, in fact, that was not true.
As part of his scheme, MEYER provided sworn, notarized certifications both to the Gallery Owner and to buyers stating that each piece was an authentic Johns work, that the art had been given to him directly by Johns, that he was the rightful owner of the piece, and that he had the right to sell that particular work. In addition, MEYER conditioned the sale of each of these works on the signed agreement by the purchaser that the art would be kept private for at least eight years, during which time the piece would not be loaned, exhibited, or re-sold.
MEYER also created fictitious inventory numbers for these pieces to give the impression that they were finished works that were authorized by Johns to be sold in the art market. Additionally, to facilitate certain sales MEYER created fake pages that he thereafter inserted into a ledger book of registered pieces of art maintained at Johns’ studio, and which he subsequently photographed, to give additional assurances to prospective buyers about the provenance, or history of ownership, of a particular piece.
During the course of the almost six-year scheme, the Gallery Owner sold 22 works of art on MEYER’s behalf for a total of approximately $6.5 million, of which $3.99 million was remitted directly to MEYER.
MEYER, 52, of Salisbury, Connecticut, pled guilty to one count of interstate transportation of stolen property, which carries a maximum sentence of 10 years in prison. Sentencing is scheduled for December 10, 2014, before Judge Oetken.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Christopher D. Frey is in charge of the prosecution.
U.S. v. James Meyer Indictment
Former Oglala Sioux Tribe Police Officer Indicted for Excessive ForceRead the Press Release
United States Attorney Brendan V. Johnson announced that a former Oglala Sioux Tribe police officer has been indicted by a federal grand jury for violating the constitutional rights of a man in her custody by repeatedly using her Taser on him without justification.
Rebecca M. Sotherland, a/k/a Becky Sotherland and Becki Sotherland, age 32, was indicted on August 26, 2014, for Deprivation of Rights Under Color of Law and Assault with a Dangerous Weapon.
The maximum penalty upon conviction is 10 years’ imprisonment and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.The Indictment alleges that on August 15, 2014, Sotherland, while acting under color of law, repeatedly deployed a Taser on the victim causing bodily injury to the victim. The alleged offense took place in Manderson, South Dakota.
The charges are merely accusations and Sotherland is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs Office of Justice Services, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Sarah Collins and Kevin Koliner are prosecuting the case, with assistance from Jared Fishman with the Civil Rights Division of the Department of Justice.
Former Mail Carrier Sentenced for Arranging Drug Deals by PhoneRead the Press Release
More than 100 Drug Deals Made By On-Duty Mail Carrier
Beckley, W.Va. – United States Attorney Booth Goodwin announced today that a Greenbrier County man was sentenced in federal court in Beckley for using a telephone to facilitate the sale of illegal drugs. Jack Edwin McCoy, 30, of White Sulfphur Springs, West Virginia was sentenced to three years of probation including four months of home confinement and 150 hours of community service.
McCoy pled guilty in May of 2014, admitting that on February 20, 2014, he used a telephone to tell a confidential informant working with law enforcement (CI) where to meet him to buy buprenorphine, a controlled substance found in the medication Suboxone. After the telephone conversation, the CI met McCoy in Ronceverte, West Virginia where McCoy sold the CI a Suboxone strip. At the time of the transaction, McCoy was working a shift as a mail carrier for the United States Postal Service. McCoy admitted that he had sold about 270 suboxone strips, and that he had sold about 100 times while on duty as a mail carrier. McCoy is no longer employed by the Postal Service.
The case was investigated by the Greenbrier Valley Drug and Violent Crimes Task Force and the United States Postal Service Office of Inspector General. The prosecution was handled by Assistant United States Attorney John File, and was pursued under the Greenbrier County Heroin and Pill Initiative, which is part of an ongoing effort by the United States Attorney’s Office for the Southern District of West Virginia, joined by federal, state and local law enforcement agencies, to aggressively pursue and shut down heroin and illegal prescription medication trafficking in communities across the Southern District.
Former Iowa State Senator Pleads Guilty to Concealing Federal Campaign ExpendituresRead the Press Release
A former Iowa State Senator pleaded guilty today to concealing payments he received from a presidential campaign in exchange for switching his support and services from one candidate to another and to obstructing a subsequent investigation into his conduct.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting Assistant Director in Charge Timothy A. Gallagher of the FBI’s Washington Field Office made the announcement.
“An elected official admitted that he accepted under-the-table payments from a campaign committee to secure his support and services for a candidate in the 2012 presidential election,” said Assistant Attorney General Caldwell. “Campaign finance reports should be accurate and transparent, not tools for concealing campaign expenditures. Lying by public officials – whether intended to obstruct the FEC or federal investigators – violates the public trust and the law, and the Department of Justice does not tolerate it.”
“Today, Mr. Sorenson has taken responsibility for his crimes,” said Acting Assistant Director in Charge Gallagher. “Exploiting the political process for personal gain will not be tolerated, and we will continue to pursue those who commit such illegal actions.”
Kent Sorenson, 42, of Milo, Iowa, pleaded guilty today to one count of causing a federal campaign committee to falsely report its expenditures to the Federal Election Commission (FEC) and one count of obstruction of justice in connection with the concealed expenditures. The guilty plea was taken by Chief Magistrate Judge Celeste F. Bremer of the Southern District of Iowa for later review by Senior District Court Judge Robert W. Pratt. Sentencing will be scheduled at a later date.
According to a statement of facts filed with the plea agreement, Sorenson admitted that he had supported one campaign for the 2012 presidential election, but from October to December 2011, he met and secretly negotiated with a second political campaign to switch his support to that second campaign in exchange for concealed payments that amounted to $73,000. On Dec. 28, 2011, at a political event in Des Moines, Iowa, Sorenson publicly announced his switch of support and work from one candidate to the other.
The payments included monthly installments of approximately $8,000 each and were concealed by transmitting them to a film production company, then through a second company, and finally to Sorenson and his spouse. In response to criticism of his change of support for the candidates, Sorenson gave interviews to the media denying allegations that he was receiving any money from the second campaign committee, and noted that the committee’s FEC filings would show that the committee made no payments to him.
In his plea agreement, Sorenson also admitted that he gave false testimony to an independent counsel appointed at the request of the Iowa Senate Ethics Committee, which was investigating allegations from a former employee of the first presidential campaign. Sorenson testified falsely to the independent counsel about the concealed payments, in part to obstruct investigations that he anticipated by the FBI and FEC .
The case is being investigated by the FBI’s Washington Field Office, with assistance from the Omaha Field Office and the Des Moines Resident Agency. The case is being prosecuted by Election Crimes Branch Director Richard C. Pilger and Trial Attorney Robert J. Higdon Jr. of the Criminal Division’s Public Integrity Section.Former Bookkeeper for Chickasha Electrical Contractor to Serve 30 Months in Prison and Pay $336,950 in Restitution for EmbezzlementRead the Press Release
Oklahoma City, Oklahoma – TAMARA HOUSLEY (a/k/a "Tami Housley"), of Louden, Tennessee, was sentenced today by United States District Judge Joe Heaton to serve 30 months in prison for embezzling from her employer by committing wire fraud and for filing a false income tax return, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. In addition, Housley was ordered to pay $336,950 in restitution.
Housley worked as a bookkeeper for an electrical contracting firm in Chickasha, Oklahoma. As bookkeeper, Housley’s duties included preparing checks, documenting accounts payable and receivable, inputting new employees into the payroll system, authorizing automatic draft payroll deductions, paying company taxes, and collecting mail. Although she was not authorized to sign company checks, she prepared checks for all payments, including business credit card statements. Housley also had exclusive access to the company payroll account.
According to court records, Housley starting using business credit cards in 2006 to make unauthorized personal purchases and directed payments to her personal PayPal account, pay her personal utility bills, cable television and cell phone bills, and purchase concert tickets. Housley had exclusive access to the company mail and withheld the monthly credit card statements from her boss and, when she resigned, even changed the billing address on one card to her home address. Starting in 2007, according to court records, Housley used her access to the company payroll account to fraudulently add her boyfriend to the weekly payroll as a "ghost employee." Housley was also charged with filing a false tax returns.
Housley was indicted on February 6, 2014. On April 22, 2014, she pled guilty to committing wire fraud and filing a false income tax return for 2010. She was sentenced today to serve 30 months in prison, followed by three years supervised release, and ordered to pay $336,950 in restitution to her employer and the IRS.
This case is the result of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation. It was prosecuted by Assistant U.S. Attorneys Julia E. Barry and Mark A. Yancey.
Former Aurora Driving School Owner Is Sentenced to Prison for Mail Fraud and Filing A False Tax ReturnRead the Press Release
DENVER – Stuart Bryan King, age 54, of Centennial, who is the owner of Little Lake Driving Academy, was sentenced today by U.S. District Court Judge William J. Martinez to serve 15 months in federal prison for mail fraud and filing a false tax return the U.S. Attorney’s office, IRS-Criminal Investigation, Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Colorado Department of Revenue, Motor Vehicle Investigations Unit announced. Following his prison sentence he was ordered to serve 3 years on supervised release. King was also ordered by Judge Martinez to pay a $3,500 fine as well as $33,772 in restitution to the IRS. King was charged by a complaint on March 5, 2013 and subsequently charged by a Grand Jury in Denver on April 8, 2013. He pled guilty on March 7, 2014 to a two count information.
According to the charging documents and plea, Little Lake Driving Academy (LLDA), located at 1415 Havana Street in Aurora, Colorado, acted as a third party tester for the State of Colorado’s Department of Revenue, Division of Motor Vehicles, administering written and driving examinations on behalf of the State of Colorado in order for an individual to obtain a Colorado Driver’s License. All driving schools must meet specific requirements and comply with Colorado State law in order to be a third party tester for the Division. The company provided the requisite testing for individuals to obtain a basic operator’s driver’s license and/or instruction permit in the State of Colorado. King owns Little Lake Driving Academy, and is a licensed tester with the State of Colorado. King was authorized to conduct driver education classes as well as certify an applicant’s successful written and driving examinations so they could receive the valid Colorado driving documents.
From August 2009 through November 2012, King and an employee of LLDA knowingly devised and participated in a scheme to defraud the Colorado Department of Revenue, Division of Motor Vehicles (DMV) by falsely certifying that applicants for a Colorado Driver’s License and instruction permit had successfully completed the required testing. As part of the scheme, the two defendants falsely certified that applicants had taken and passed the written tests. The applicants then presented the certified documents to the DMV and received by mail a State of Colorado driver’s license and/or instruction permit.
As a result of the scheme, driver's licenses were mailed to applicants and during 2009 through 2012, and King administered nearly 1,000 of these "tests" collecting $323,050 in fees. King owned La Lagunilla, Inc. and Sovereign Enterprises, Ltd. which did business as Little Lake Driving Academy. For tax years 2009 through 2011, King failed to file business tax returns and under reported income which resulted in a tax loss of $33,772.
Furthermore, the investigation revealed that people who could not speak, read or write English traveled from Missouri and other states to Colorado. Those who traveled to Colorado from Missouri had previously purchased the identities of U.S. citizens and obtained Missouri identification cards in the names of the stolen identities. These individuals, after utilizing the services of Little Lake, turned in their Missouri identification cards to obtain Colorado driver’s licenses and instruction permits. In separate charging documents, 20 individuals who had utilized the services of Little Lake and who turned in Missouri identification cards were indicted in Colorado for Aggravated Identity Theft. To date, Catarina Alcon, Freddy Castro-Alcon, Lucia Contreras Perez, Juan Garcia, Elias Garcia-Perez, Diego Hernandez-Batz, Candelarlio Hernandez-Perez, Martha Jimenze-Ortiz, Gustavo Monteroso-Velasquez, Isnael Raymundo, Jose Antonio Rivera, Felix Solis, Carlos Villa-Flores and Elias Zetino-Vicente have been arrested based on the Aggravated Identity Theft indictments.
“The fraud committed by this defendant put the public’s safety at risk,” said U.S. Attorney John Walsh. “By providing documentation authorizing the issuance of driver licenses to those who have not properly qualified not only puts the driving public at risk, it also potentially hides individuals’ true identities.”
“Investigating and prosecuting tax fraud and identity theft are priorities for IRS Criminal Investigation,” Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office. “We will continue to work with our law enforcement partners to bring those to justice who commit these crimes harming our citizens whose identities are stolen.”
“The fraudulent use of identification documents, both real and counterfeit, may allow the bearer to board an aircraft, improperly obtain a government benefit or allow a criminal to remain in the shadows undetected. These crimes represent a very real threat to our public safety and the security of our nation,” said Kumar Kibble, special agent in charge of HSI Denver. “Through the combined authorities and expertise of our federal, state and local law enforcement partners, we will continue to aggressively target those participating in or facilitating these crimes.”
This case was investigated by the Internal Revenue Service – Criminal Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Colorado Department of Revenue, Motor Vehicle Investigations Unit.
The defendants were prosecuted by Assistant U.S. Attorney Robert M. Brown.
Florida Man Pleads Guilty to Southside Manufacturing Corp. FraudRead the Press Release
DANVILLE, VIRGINIA – A Florida man, who was previously convicted of similar theft charges, pled guilty Monday, August 25, 2014, in the United States District Court for the Western District of Virginia in Danville to charges related to his theft of employee pension plan contributions and failing to pay the IRS the federal employment taxes withheld from employee paychecks.
Patrick Vincent Crowe, 62, most recently a resident of Florida, waived his right to be indicted and pled guilty to a two-count Information charging him with one count of theft or embezzlement from employee benefit plan and one count of failure to truthfully account for and pay withheld federal payroll taxes. As part of his plea agreement, Crowe was sentenced the same day to ten (10) years of federal incarceration.
“Mr. Crowe stole from his employees and ran a thriving local business into the ground,” United States Attorney Timothy J. Heaphy said today. “The United States Attorney’s Office will continue to pursue those like Mr. Crowe who fail to pay required federal taxes.”
According to a statement of facts entered into the record during the guilty plea hearing by Assistant United States Attorney Jennie L.M. Waering, Crowe was convicted in 2009 of two counts of theft and embezzlement from an employee benefit plan in Rhode Island and two counts of failing to pay over withheld employee taxes. As a result, he served 48 months in prison and, upon his release, was prohibited by the Employee Retirement Income Security Act of 1874, from serving any employee benefit plan as an administrator or representative in any capacity.
Prior to his release on February 28, 2012, Crowe filed articles of incorporation for The Loyola Fund, Inc., listing himself as Vice President. On February 29, 2012, the day after his release from federal incarceration, Crowe amended his articles of incorporation to list himself as President of The Loyola Fund, Inc., and almost immediately began to pursue the purchase of Southside Manufacturing Corporation in Danville, Virginia, for $2,922,780, a purchase which was completed on April 5, 2013.
Following the sale of Southside Manufacturing to Crowe, office bookkeepers continued to prepare 401(K) plan contribution checks, but Crowe would not release the funds. When confronted about the missing contributions, Crowe said that the checks fell out of his briefcase. In subsequent months, Crowe refused to sign similar checks. Others were returned with insufficient funds, despite the fact that Crowe was still paying himself $1,000 per week in salary.
In addition, upon the purchase of Southside manufacturing, Crowe ceased paying payroll taxes and often missed payments on the company’s employee medical plan. In December 2013, after Southside defaulted on their loans, creditors exercised their rights to take possession of Southside’s collateral, which included the premises and equipment. As a result, Southside Manufacturing closed its doors and more than 40 employees lost their jobs.
The federal employee tax withholding not paid by Crowe was $109,536, and the unpaid employer portion was $49,225.00. The pension plan theft loss totaled $8,765.79. The health plan theft loss was $6,421.86. The total restitution Crowe was ordered by the Court to pay was $173,949.01.
The investigation of the case was conducted by the United States Department of Labor, Office of Inspector General and the Employee Benefits Security Administration, the United States Internal Revenue Service, Criminal Investigations Division, and the Pittsylvania County Sheriff’s Office. Assistant United States Attorney Jennie L.M. Waering prosecuted the case for the United States.
Financier Steals Millions by Falsely Claiming Investor Funds Secured by Billion Dollar Mining CompanyRead the Press Release
San Diego, CA - United States Attorney Laura E. Duffy announced that William Ison pled guilty earlier today to defrauding investors, including San Diego residents, of nearly $7 million. According to documents filed in federal court, Ison obtained these funds between March 2008 and September 2012 by falsely claiming that the funds would be secured by his own mining company which was supposedly worth billions of dollars.
In his guilty plea, Ison admitted helping Douglas Ellingson (who previously pled guilty and is awaiting sentencing) solicit investors for “private placement programs” through Ellingson’s business entity, Destiny’s Partners Ventures. Among other things, Ison gave presentations to potential investors at seminars throughout the United States, in which he made fraudulent representations to induce individuals to invest with Ellingson. These false representations included the claim that investors’ funds would not be subject to risk as they were backed by Ison’s multi-billion dollar mining company.
In order to mislead investors, Ison claimed that his role as President of Blue Diamond Excavation, Inc. (“BDE”), a mining excavation company based in Newport Beach, allowed him to safely secure loans as its assets were worth $86 billion. In fact, BDE had yet to begin mining operations or produce any income from mining. Ison embellished his story by falsely telling investors that he had already used BDE’s assets to secure medium-term notes (“MTNs”) valued at $2-2.5 billion. Ison went so far as to claim that individuals had already committed to purchase one MTN worth $250 million as a “guaranteed exit sale” in the event capital was required to replace investor funds. In fact, Ison had not obtained any MTNs and no buyers had been secured.
Ison also misled potential investors by claiming that he had already been involved with incredibly successful investment programs in which he had personally made more than $100 million. He also lied to investors by telling them that he managed a consortium of large non-profit foundations that donated more than a trillion dollars annually to various humanitarian causes. During his plea, Ison admitted that he had not received such profits, did not personally manage active non-profit foundations, and that the claimed donations were fictitious.
Ellingson and Ison initially wire-transferred investor funds for placement in the Winsome Investment Trust, through James Pantazelos and Robert Andres. Both Pantazelos and Andres have already pled guilty for their roles in the fraud scheme. Pantazelos was sentenced in Chicago to 114 months in custody on February 15, 2013, and ordered to pay over $3.3 million in restitution (United States v. Pantazelos, No. 11CR50078 (N.D. Ill. 2011)). Andres is presently scheduled to be sentenced in Utah on September 1, 2014 (United States v. Andres, No. 11CR0985-RJS (D. Utah 2011).
Ison entered his guilty plea before U.S. District Court Judge Dana M. Sabraw, and he is scheduled for sentencing on January 30, 2015. Ellingson is presently scheduled to be sentenced by Judge Sabraw on October 24, 2014.
DEFENDANT Case Number: 12CR4030-DMS William Ison Age: 54 CHARGESTitle 18, United States Code, Sections 371, 1343 (Wire Fraud Conspiracy)
INVESTIGATING AGENCY
Maximum penalty: 5 years of custody; $250,000 Fine (or twice the gross loss of the offense)Federal Bureau of Investigation
Internal Revenue Service*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Detroit Man Sentenced to More Than 12 Years in Prison for Armed CarjackingRead the Press Release
A Detroit man was sentenced to 12 years and 11 months in prison following his guilty plea to armed carjacking, United States Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation.
U.S. District Judge David M. Lawson also ordered that Vantanez Trotter serve five years of supervised release following his release from custody. Trotter’s sentence will begin after he completes a state sentence for assault to commit great bodily harm that he is currently serving.
The evidence in the case showed that on December 8, 2012, the owner of a 2013 Mercedes and his cousin sat in the car outside of a house on Evergreen in Detroit. As the two spoke, a Ford Focus parked in front of them. Two men, each armed with an AK-47 type rifle and wearing masks, emerged from the Focus and ordered the victims out of the car and to the ground. Trotter drove away in the Mercedes and the other man drove away in the Focus.
Detroit Police officers responded and located the Mercedes using location software. Trotter fled and stopped the car in Ecorse, where he fled on foot and was apprehended after short chase. Along his path, police recovered an AK-47 type rifle that was loaded with 30 rounds of ammunition.
United States Attorney Barbara McQuade stated: “Armed carjacking is a priority for federal prosecution because of the danger and fear that it creates for motorists. Federal convictions for carjacking bring long prison sentences that we hope will deter criminals from committing this crime.”
The cooperative efforts of the Detroit Police Department and the Federal Bureau of Investigation's Violent Crime task Force were recognized and applauded by U.S. Attorney McQuade. Assistant United States Attorneys John O=Brien and Jeanine Brunson of the office=s Violent and Organized Crime Unit prosecuted the case for the United States.Delaware County Man Sentenced for Stealing Identities as Part of A Tax Fraud SchemeRead the Press Release
PHILADELPHIA - Reynaldo Estrada, 50, of Brookhaven, PA, was sentenced today to 51 months in prison for stealing the identities of numerous patients of a local hospital as part of a tax fraud scheme. Estrada pleaded guilty on April 24, 2014 to one count each of conspiracy to commit identity theft, aggravated identity theft, and aiding and abetting the use of a false Social Security number. In addition to the prison term, U.S. District Court Judge Mitchell S. Goldberg ordered three years of supervised release, restitution in the amount of $409,779, and a $300 special assessment.
Between October 2010 and October 2011, while he was working for Crozer Chester Medical Center’s Environmental Services Department and at Community Hospital in Chester, Pennsylvania, Estrada stole scores of treatment authorization forms containing patients’ names, addresses, dates of birth, and Social Security numbers. Estrada admitted that he gave the forms to co-conspirators Rafael Henriquez Polanco and Yanira Lopez, who paid him for the stolen identities, knowing that Polanco and Lopez were using the forms as part of a tax fraud scheme. Polanco and Lopez are charged in a separate indictment with using the identifying information provided by Estrada to prepare and file approximately 144 false and fraudulent federal individual income tax returns claiming bogus refunds in excess of $1.7 million. Additionally, Polanco is separately charged by information with possessing both powder and crack cocaine with the intent to distribute. Both Polanco and Lopez have pleaded guilty to all charges against them.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI), U.S. Department of State Diplomatic Security Service, U.S. Department of Labor Office of Inspector General, and Internal Revenue Service Criminal Investigations. It was prosecuted by Assistant United States Attorney Kevin Brenner.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Cullman Mother and Son Face Fraud and Tax Charges in Scheme to Steal from East Alabama Health CenterRead the Press Release
BIRMINGHAM -- Federal prosecutors today charged a Cullman mother and son in connection with a scheme to defraud federal government health agencies and a non-profit east Alabama health center of more than $100,000 for personal expenditures including electronic fish finders, truck tires, cell phones and an adult website membership.
The U.S. Attorney's Office for the Northern District of Alabama charged SHEILA OSBORNE PARKER and JAMES ROBERT PARKER in separate informations filed in U.S. District Court. U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein Jr., IRS Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot, and U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Regional Office Special Agent in Charge Derrick Jackson announced the charges.
Sheila Parker, 59, faces six counts of wire fraud, two counts of bank fraud and two counts of failing to file federal income tax returns. James Parker, 33, faces five counts of wire fraud and two counts of failing to file income tax returns. Both defendants have entered plea agreements with the government.
Sheila Parker worked for Birmingham Health Care, a non-profit organization in Birmingham intended to provide free or low-cost health care services to the homeless and to people living below poverty level in the metro area. In 2008, BHC assumed responsibility for the fiscal affairs of Central Alabama Comprehensive Health Inc. in Tuskegee, and Sheila Parker began, on a contract basis, to perform bookkeeping and fiscal duties for that center. CACH was a non-profit organization intended to provide primary and preventative health care to people in east Alabama, regardless of their ability to pay.
Both community health centers began receiving grants from the Health Resources and Human Services Administration, an arm of the U.S. Department of Health and Human Services, more than 20 years ago, according to the charges and plea agreements filed today. The overwhelming majority of BHC and CACH funding comes through grants administered by HRSA and HHS, and the two centers have received millions of dollars from those grants, according to the court documents.
"Today, these defendants acknowledge that they took money from a federally funded community health center intended to serve the poor and uninsured so the defendants could enjoy a more lavish lifestyle and indulge an expensive hobby," Vance said. "That conduct is as unacceptable as it is criminal, and we are committed to addressing any criminal conduct that may have occurred as we move forward with the investigation," she said.
"It is outrageous that fraudsters, in order to fuel personal shopping sprees, would steal scarce taxpayer funds meant to provide critically needed health care services to poor and homeless individuals," Jackson said. "Our agency is dedicated to uprooting such fraud."
"Sheila Parker and James Parker completely disregarded the payment of their tax liability to the Internal Revenue Service," Hyman-Pillot said. "It is a federal crime for individuals to deliberately neglect their filing requirements to the United States government. These actions jeopardize the integrity of our tax system, which fosters voluntary compliance."
According to the charges and plea agreements in the case, the Parkers carried out their fraud as follows:
Sheila Parker enlisted her son's help with her duties for CACH and allowed him access to the center's bank accounts. She permitted, and sometimes instructed him to use CACH funds for personal purchases. The total loss amount attributed to the Parkers' fraud is $116,416 and the government seeks that amount in forfeiture from the two defendants.
The Parkers' fraudulent transactions on CACH accounts between March 2010 and May 2011 included a $2,799 charge at Best Buy for two Lowrance Fishfinder/Chartplotters, a $328 charge at Systems & Services Technologies to make a payment on a bass boat, $3,500 charged through PayPal to send to James Parker's then-girlfriend, a $668 charge at Tire Rack, and $14.95 spent at the adult website epoch.com to buy a one-month membership to "Jamie's World."
The bank fraud charges against Sheila Parker are the result of disputes she filed with Regions Bank on about 40 charges on CACH's bank account. Although those were fraudulent charges made by Sheila and James Parker, she disputed the charges in an effort to conceal the fraud. Regions Bank returned about $30,668 to the CACH account for the charges Sheila Parker disputed.
Sheila and James Parker both face failure to file federal income tax returns for the calendar years 2010 and 2011.
Sheila Parker acknowledges in her plea agreement that she failed to file a return on a gross income of $78,481 in 2010, and on $92,127 in 2011. She also acknowledges she failed to file returns every year from 2004 through 2012, and that for tax years 2008 through 2012, she owes the IRS $11,946.
James Parker acknowledges in his plea agreement that he failed to file returns for the tax years 2004 through 2011. In 2010, he had a gross income of about $90,215, of which $82,212 was illegal, according to his plea agreement. His gross income in 2011 was $24,729, all of which was illegal. According to his plea agreement, James Parker owes the IRS $17,658 for tax years 2004 through 2011.
The FBI, IRS Criminal Investigation Division, and the HHS OIG investigated the case, which Assistant U.S. Attorneys Tamarra Matthews-Johnson and Melissa Kay Atwood are prosecuting.
Crownpoint Man Pleads Guilty to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Elbanal Al Johnson, 34, an enrolled member of the Navajo Nation who resides in Crownpoint, N.M., pleaded guilty this morning to a felony information charging him with abusive sexual contact. Under the terms of the plea agreement, Johnson will be sentenced to ten years in federal prison followed by a term of supervised release to be determined by the court. Johnson will have to register as a sex offender when he completes his prison sentence.
Johnson was arrested in March 2013, based on a criminal complaint charging him with sexually assaulting an 11-year-old Indian child in Crownpoint in Nov. 2012. According to court filings, the child victim was in Johnson’s care when Johnson committed the crime. During today’s proceedings, Johnson admitted sexually assaulting the child victim on Nov. 5, 2012.
Johnson has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has not been scheduled.
This case was investigated by the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Corporate Vice President Pleads Guilty to Healthcare Fraud SchemeRead the Press Release
ATLANTA – Daniel K. Lane, Jr. has pleaded guilty to conspiring to commit healthcare fraud for filing fraudulent claims with Medicare, Blue Cross Blue Shield, and other insurers.
“This healthcare fraud scheme originated in the executive suite of Compass Healthcare and ended with the company filing thousands of false insurance claims,” said United States Attorney Sally Quillian Yates. “After cheating the insurers by getting them to pay for high-cost medical equipment never provided, the defendant papered up the fraud by sending in altered prescriptions with false patient diagnoses to support the claims. His business model was really a scam.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Leadership within the healthcare industry should be part of the cure, not the problem with respect to healthcare fraud related matters. The FBI will make every effort to focus its investigative resources and assets in identifying individuals such as Mr. Lane and presenting them for federal prosecution.”
"Protecting patients from unscrupulous billing practices and protecting the Medicare trust fund remains this agency's top priority," said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. "In addition to billing for services that were not provided, in some instances, this owner reported false diagnosis codes, making it difficult for the patients to subsequently obtain health insurance. Justice was well served in this instance."
According to United States Attorney Yates, the charges and other information presented in court: Daniel K. Lane, Jr. is the Vice President and Chief Financial Officer for Compass Healthcare, Inc., a durable medical equipment business headquartered in St. Louis, Mo., with offices in Atlanta, Ga., and other cities. Compass Healthcare specializes in providing compression stockings to patients who have been diagnosed with medical conditions such as chronic venous insufficiency and edema. Doctors may prescribe compression stockings, which come in different levels of tightness, as treatment for these conditions.
Lane’s position included responsibility for the billing of insurance companies for the compression stockings that Compass Healthcare provided to individuals who were covered by insurance. He fraudulently set up the company’s billing system so that in most instances it would automatically bill the insurers for the highest compression stocking, regardless of which stocking had actually been provided to the individual, in order to generate higher payments from Medicare, Blue Cross, and other insurers. As a result, Compass Healthcare routinely “upcoded” the claims it submitted to insurers for the stockings it had provided to individuals.
Lane conspired with an Office Manager for Compass Healthcare, Holly Keisker, and others to submit these false claims and conceal the fraudulent upcoding. Also as part of the scheme, Compass Healthcare included false diagnoses on its insurance claims to ensure payment. These false claims represented that Compass Healthcare customers had been diagnosed with various medical conditions, including chronic venous insufficiency and edema, to support the claims for high compression stockings, when in fact the customers had not been diagnosed by a doctor. Instead, Compass Healthcare used “blanket” diagnosis codes that were false to support insurance claims for compression stockings provided to customers who had no medical condition. Lane, Keisker, and others conspired to forge and alter doctors’ prescriptions so that they would support the fraudulent claims that had been submitted to insurers. They altered the prescriptions to falsely reflect that a high compression stocking had been prescribed and that the patient had been diagnosed with a medical condition. In 2011, Lane submitted altered prescriptions to Blue Cross in response to an audit conducted by the insurer.
Lane, 57, of St. Louis, Mo., pleaded guilty to one count of conspiracy to commit healthcare fraud. On September 19, 2013, Keisker, 61, of St. Louis, Mo., pleaded guilty to one count of conspiracy to commit health care fraud.
Sentencing for Lane is scheduled for November 19, 2014, at 10:00 a.m., before United States District Judge Willis B. Hunt, Jr.. Sentencing for Keisker is scheduled for December 10, 2014, at 10 a.m., before Judge Hunt.
This case is being investigated by Special Agents of the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General.
Assistant United States Attorneys Stephen H. McClain and Jeffrey W. Davis are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Corporate Executive Indicted for Child Porn, Sexual Exploitation of a ChildRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced a corporate vice president was indicted by a federal grand jury today on charges related to child sexual exploitation and child pornography as the result of an undercover operation in which he believed he was meeting two minor girls for sex.
Daniel C. Irwin, 37, of Kansas City, Mo., was charged in an eight-count indictment returned by a federal grand jury in Kansas City. Irwin is an assistant vice president of accounting at State Street in Kansas City. Today’s indictment replaces a federal criminal complaint that was filed against Irwin on Aug. 8, 2014.
Today’s indictment alleges that Irwin attempted to entice a minor over the Internet to engage in illicit sexual activity between Jan. 14 and Aug. 8, 2014.
Irwin is also charged with four counts of distributing child pornography over the Internet, one count of receiving child pornography over the Internet, one count of using the mail to attempt to transfer obscene matter to a minor under the age of 16 and one count of possessing child pornography on his cell phone.
According to an affidavit filed in support of the original criminal complaint, a Kansas City, Mo., Police Department detective created an undercover profile on a public Web site that allows users to upload pictures, videos and stories of a sexual nature.
Irwin, who had earlier established a profile on this same Web site, sent a message to the undercover profile on Jan. 14, 2014, the affidavit says. Irwin allegedly sent an e-mail to the undercover profile that included pornographic images and a message that read in part, “Sure would enjoy helping u out with the girls!” Over the next two days, the affidavit says, there were numerous e-mail communications between Irwin and the undercover detective in which Irwin expressed an interest in meeting. The undercover detective informed Irwin that his daughters were 16 and 12 years of age and that he had been sexually active with them. Over the course of the next month, the affidavit says, Irwin periodically sent e-mails asking about the sexual activity of the undercover detective’s daughters.
According to the affidavit, the undercover detective received numerous e-mails during the weekend of Feb. 19 and 20, 2014, in which Irwin detailed the various sex acts he wanted to perform on the daughters. On Feb. 21, 2014, Irwin allegedly sent an e-mail asking to meet at Side Pockets in Kansas City, North. The undercover detective agreed, and they met in the parking lot on Feb. 21, 2014, then walked into the restaurant and sat down at a table together.
Irwin allegedly told stories of meeting random women from the Internet for sex and wanted to hear stories about the undercover detective’s sexual experiences with his daughters. Irwin explained that he would be interested in meeting the daughters and eventually having sex with them, the affidavit says. Irwin allegedly told the undercover detective about various illicit sex acts that he had engaged in, including an incident in which Irwin met a man in the Kansas City area that allowed him to watch while the man had sex with a miniature horse.
Irwin continued to send e-mail messages over the next two months, the affidavit says. These infrequent communications stopped on April 10, 2014, according to the affidavit, until Irwin sent another e-mail more than two months later on July 17, 2014. Irwin allegedly sent the undercover detective numerous photos and videos of child pornography. Irwin allegedly offered to trade additional child pornography for being allowed to engage in illicit sexual activities with the daughters.
Law enforcement officers executed a search warrant at Irwin’s residence on Aug. 8, 2014, and Irwin was arrested.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Company Sentenced for Improper Storage of Explosive Hazardous WasteRead the Press Release
PHILADELPHIA – Action Manufacturing Company, headquartered in Bristol, Bucks County, was sentenced today to a five-year term of probation and to pay a fine of $1.2 million for storing explosive hazardous waste illegally at its facility in Atglen, Chester County, PA. The company agreed to install a new president and chief executive officer, and the company will comply with a schedule for disposing of the backlog of waste built up over many years. U.S. District Court Judge Nitza I. Quinones Alejandro also ordered an $800 special assessment.
Action Manufacturing makes timing and arming devices for munitions and explosives. In its manufacturing process, Action Manufacturing mixes explosive powders, and also fills boosters, detonators and other items with explosive powders. Action Manufacturing's production process generates explosive solid waste, and the law requires that it be disposed of in accordance with the Resource Conservation and Recovery Act. The company admitted that, instead of sending its waste to an approved treatment, storage and disposal facility, it stockpiled explosive hazardous waste at its Atglen facility without a permit. In November 2011, civil inspectors from EPA's Land and Chemicals Division and the Pennsylvania Department of Environmental Protection inspected the Atglen site, and found the illegally stored waste, including scrap parts and components that were years or even decades overdue for disposal.
Action Manufacturing also admitted that it violated Department of Transportation recordkeeping regulations for transporting explosive material on the public roads.
The case was investigated by the EPA’s Criminal Investigations Division and the U.S. Department of Transportation Office of Inspector General. It was prosecuted by Assistant United States Attorney Elizabeth Abrams.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Cleveland Man Sentenced to 17 Years in Prison for Heroin TraffickingRead the Press Release
A Cleveland man was sentenced to 17 1/2 years in prison for his role in a major heroin trafficking conspiracy, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Maceo Moore, 37, pleaded guilty in February to one count of conspiracy to possess with intent to distribute heroin.
U.S. District Judge Christopher Boyko sentenced Moore to 210 months in federal prison. Boyko also ordered Moore to forfeit $9,550 in cash and a 2007 Mercedes Benz.
“This defendant was featured in movies and music videos but now his talents will be confined to federal prison,” Dettelbach said. “He played a starring role in a criminal conspiracy involving heroin and firearms, and for that, richly deserves this sentence.”
“Maceo Moore will no longer profit from harming others by selling drugs as his glamorization of a drug dealer’s lifestyle appropriately ends in a lengthy prison sentence,” Anthony said. “Thankfully, Moore was brought to justice by law enforcement professionals who work every day to protect the public from violent people like him.”
Moore obtained heroin that was originally shipped from Atlanta to Northeast Ohio, which he in turn sold to others, according to court documents.
Moore and others also planned and committed burglaries and robberies from other drug dealers, customers, and each other. This was done to fund their drug trafficking, to obtain heroin and other drugs, and to collect drug debts, according to court documents.
The men then sold the stolen heroin at discounted prices or used the stolen money to obtain heroin. They identified potential victims through a variety of ways, including targeting those who appeared to have expensive jewelry or cars or by using women to gather information about potential victims and report back to them. They sometimes used firearms or zipties to restrain victims, according to court documents.
According to a sentencing memo filed in the case, Moore told undercover officers in 2012: “I sold drugs, but I started getting more money when I started taking from the drug dealers. That’s how, honestly, that’s how I got my money. I sold drugs, but I always been the hustler, so I sold drugs, I find out such and such over here got it, they doing good, well, we going to get that. Flat out, we going to get it.”
This case is being prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd, Daniel J. Riedl, and Matthew B. Kall, following a multi-year investigation by the Northern Ohio Law Enforcement Task Force (NOLETF).
The NOLETF is a long standing multi-agency task force comprised of investigators from the Federal Bureau of Investigation, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, U.S. Coast Guard Investigative Service, Cleveland Division of Police, Cleveland Heights Police Department, Cuyahoga County Sheriff’s Office, Euclid Police Department, Regional Transit Authority Police Department, Westlake Police Department, and Shaker Heights Police Department. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area (HIDTA) initiatives. HIDTA supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.
The investigation was assisted by the Hotel Interdiction Team, another HIDTA initiative composed of members of the FBI, Cuyahoga County Sheriff’s Office, Homeland Security Investigations, and police departments from Broadview Heights, Brooklyn, Brook Park, and Independence.