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15 August 2014
Big Game Hunting Outfitter Pleads Guilty to Felony Conspiracy Charge in Connection with Illegal Mountain Lion and Bobcat Hunting ActivitiesRead the Press Release
Christopher W. Loncarich, 55, of Mack, Colorado, pleaded guilty in federal court in Denver to a felony conspiracy charge stemming from his sale of outfitting services for illegal mountain lion and bobcat hunts in Colorado and Utah, the Justice Department announced.
Loncarich pleaded guilty to one count of conspiracy to violate the Lacey Act. The Lacey Act is a federal law that makes it illegal to knowingly transport or sell in interstate commerce any wildlife that has been taken or possessed in violation of state laws or regulations.
According to an indictment returned by the grand jury for the District of Colorado on Jan. 7, 2014, and the plea agreement, Loncarich conspired with others to provide numerous illegal hunts of mountain lions and bobcats in Colorado and Utah from 2007 to 2010. In particular, Loncarich and his confederates trapped, shot and caged mountain lions and bobcats prior to hunts in order to provide easier chases of the cats for clients. Loncarich also admits that he and his assistants guided several hunters that did not possess a Utah mountain lion or bobcat license on mountain lion or bobcat hunts in Utah. Loncarich’s base of operations in Mack, Colorado, is approximately five miles from the Utah-Colorado border. Loncarich sold mountain lion hunts for between $3,500 and $7,500 and bobcat hunts for between $700 and $1,500 and shared a portion of the proceeds from successful hunts with his assistant guides.
Three of Loncarich’s assistant guides have previously pleaded guilty to Lacey Act violations in connection with their guiding activities with Loncarich. On July 30, 2014, Loncarich’s lead assistant guide, Nicholaus J. Rodgers, pleaded guilty to felony conspiracy to violate the Lacey Act in connection with his work for Loncarich.
The maximum penalty for conspiring to violate the Lacey Act is five years in prison and a $250,000 fine. Under the terms of the plea agreement, the prosecution agreed to a sentencing calculation pursuant to the advisory United States Sentencing Guidelines but did not agree on a term of imprisonment, an amount of fines or an amount of restitution. A sentencing hearing for Loncarich is set for Nov. 20, 2014.
The case was investigated by the U.S. Fish & Wildlife Service, Colorado Parks and Wildlife and the Utah Division of Wildlife Resources. The case is being prosecuted by the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.Battle Ground Resident Sentenced to 15 Years in Prison for Making Images of Child MolestationRead the Press Release
A 46-year-old Battle Ground, Washington man was sentenced today to 15 years in prison and lifetime supervised release for production of child pornography, announced U.S. Attorney Jenny A. Durkan. DAVID P. HARLAN, 46, pleaded guilty in January 2014. He has been serving a six and a half year state sentence for child molestation since May 2014. His federal sentence will run concurrent with the state sentence. At his sentencing hearing U.S. District Judge Ronald B. Leighton told him, “This is a serious offense, with tragic consequences. The sentence here needs to deter conduct like this by you or by like-minded people.”
According to records filed in the case, U.S. Immigration and Customs Enforcement (ICE) agents in Portland, Oregon were alerted by German authorities that someone at a particular IP address in the Vancouver, Washington, area was distributing child pornography using peer-to-peer file sharing software. HARLAN was identified as the person controlling the computers at the IP address. A court authorized search warrant was served on HARLAN’s Battle Ground home in March 2010. Ten computers, numerous DVDs, hard drives and cameras were seized from the residence. Forensic analysis discovered more than 5,300 images and 183 movie files of children engaged in sexually explicit conduct. Some of the child pornography was of victims already identified by the Center for Missing and Exploited Children. However, investigators determined that some of the pornographic pictures had been taken of young children whose parents were friends of HARLAN. In one instance the photos had been taken when the child was about 5-years-old, and her mother was busy in the kitchen.
“This case is a sad reminder that most children are victimized by someone they know and trust,” said Brad Bench, special agent in charge of HSI Seattle. “Fortunately, through this investigation that began halfway around the world in Germany, HSI and its local partners have put an end to Harlan’s sexual abuse of children.”
The case was investigated by U.S. Immigration and Customs Enforcement (ICE) and the Battle Ground Police Department. The case was prosecuted by Assistant United States Attorney David Reese Jennings.
Albert Einstein Healthcare and Fornance Physician Services Agree to Settlement of Voluntary DisclosureRead the Press Release
The United States announces that it has settled claims under the False Claims Act with Albert Einstein Healthcare Network and Fornance Physician Services for improperly billing federal health care programs for services submitted on behalf of Dr. Roman. Einstein and Fornance voluntarily disclosed the allegations and have agreed to pay $ 348,854.00 to resolve the matter.
According to the self-disclosure and the investigation that followed, between November 10, 2010 and January 25, 2012 bills were submitted to federal health care programs for services that were allegedly performed by Dr. Roman and were actually performed by resident physicians where Dr. Roman was not appropriately performing teaching physician services; bills were submitted for services performed by Dr. Roman where there was not sufficient documentation to support the billable service; and some bills were submitted that were upcoded. The United States alleges that false claims were submitted to the government. After it discovered the problem, Einstein and Fornance took corrective action to resolve the improper payments, and disclosed the matter to the United States Attorney’s Office.
This matter was handled by Department Health and Human Services Office of the Inspector General, including Attorney Katherine Matos and AATS Audit Manager Bernard Siegel with the Office of Audit Services, and Assistant United States Attorney Susan Dein Bricklin.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Accused Russian Hacker Ordered Held Pending TrialRead the Press Release
Accused Russian hacker ROMAN SELEZNEV was ordered detained in federal custody today pending trial scheduled for October 2014. SELEZNEV’s attorneys had asked the court to release him to a furnished apartment in Seattle on a $1 million bond secured by $100,000 in cash, and to essentially place him on house arrest with electronic home monitoring and no access to computers. Magistrate Judge James P. Donohue rejected the defense proposal, however, noting that SELEZNEV has no ties to the Western District of Washington, was a frequent international traveler, has large amounts of money in bank accounts around the world, and is computer savvy enough to create false identity documents which would allow him to flee.
“Today was another important step in ensuring the charges against this defendant are tried in this community,” said U.S. Attorney Jenny A. Durkan. “The defendant is entitled to every protection offered by our system, but will be afforded no special privileges. Our investigation into the scope of defendant's actions is ongoing.”
During the hearing, prosecutors revealed that a laptop computer seized from SELEZNEV at the time of his arrest contains 2.1 million stolen credit card numbers. The forensic analysis of the computer also shows that in the days before his arrest SELEZNEV was searching the electronic filing system for the United States federal courts looking for his name or online nicknames in any federally filed cases.
Background on the case
Roman Valerevich Seleznev, aka “Track2,” 30, of Vladivostok, Russia, was indicted by a federal grand jury in the Western District of Washington on March 3, 2011, and the indictment was unsealed on July 7, 2014. Seleznev is charged in connection with operating several carding forums, which are websites where criminals gather to sell stolen credit card numbers, and hacking into retail point of sale systems and installing malicious software on the systems to steal credit card numbers.According to the allegations in the indictment, Seleznev hacked into retail point of sale systems to steal credit card numbers between October 2009 and February 2011. Seleznev also created and operated infrastructure using servers located all over the world to facilitate the theft and sale of credit card data and host carding forums. Seleznev is charged with 29 counts: five counts of bank fraud, eight counts of intentionally causing damage to a protected computer, eight counts of obtaining information from a protected computer without authorization, one count of possession with intent to defraud of 15 or more unauthorized access devices (stolen credit card numbers), two counts of trafficking in unauthorized access devices and five counts of aggravated identity theft.
The case is being investigated by the U.S. Secret Service Electronic Crimes Task Force, which includes detectives from the Seattle Police Department. The case is being prosecuted by Assistant United States Attorneys Norman M. Barbosa and Seth Wilkinson of the Western District of Washington and Trial Attorney Ethan Arenson of the Criminal Division’s Computer Crime and Intellectual Property Section. The Criminal Division’s Office of International Affairs and the U.S. Attorney’s Office for the District of Guam provided substantial assistance.
Seleznev has also been charged in an indictment filed in the District of Nevada that was returned on Jan. 10, 2012, and unsealed on Nov. 13, 2013, alleging that he participated in a racketeer influenced corrupt organization, conspired to engage in a racketeer influenced corrupt organization, and possessed counterfeit access devices. Seleznev, referenced as “Track2” in the indictment, and 54 others are charged with being members of the “Carder.su” organization which allegedly trafficked in compromised credit card account data and counterfeit identifications and committed money laundering, narcotics trafficking, and various types of computer crime. Seleznev allegedly operated a website that sold stolen credit card information to members of the Carder.su organization. Thus far, at least 25 of the defendants have been convicted, and several others are fugitives.
The Nevada investigation is being handled by Immigration and Customs Enforcement – Homeland Security Investigations and the U.S. Secret Service. The Nevada case is being prosecuted by Assistant United States Attorneys Kimberly M. Frayn and Andrew W. Duncan of the District of Nevada and Trial Attorney Jonathan Ophardt of the Criminal Division’s Organized Crime and Gang Section.
The charges contained in the indictments are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Abilene, Texas, Man Admits Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — Justin Turcheck, 29, of Abilene, Texas, pleaded guilty this morning before U.S. District Judge Sam R. Cummings to one count of possession of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Turcheck, who is on bond, faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report.
Turcheck admitted that in mid-June 2012, he possessed an external hard drive that contained numerous images of child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
resources.” U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Abilene Police Department, and the Air Force Office of Special Investigations investigated the case. Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution.
14 August 2014
Wilkes-Barre Man Sentenced to 65 Months’ Imprisonment for Conspiracy to Distribute CocaineRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that yesterday Senior United States District Court Judge A. Richard Caputo has sentenced Richard Hall, age 38, of Wilkes-Barre, Pennsylvania, to 65 months’ imprisonment for his involvement in a conspiracy to distribute cocaine hydrochloride and cocaine base (crack) between 2009 and April 2013; and for distributing marijuana to a person under the age of 21.
According to United States Attorney Peter Smith, Hall was a cocaine and marijuana dealer in the Wilkes-Barre area. Hall obtained cocaine from New York City and marijuana from the Philadelphia for distribution in the Luzerne County area. On April 2, 2013, FBI Agents arrested Hall in Atlantic City, New Jersey. On February 24, 2014, Hall appeared in federal court and pleaded guilty to the conspiracy charge and a charge that he distributed marijuana to a person under 21.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office, and the Luzerne County District Attorney’s Office. Assistant United States Attorney John Gurganus prosecuted the case.
Wake Forest Man Pleads Guilty to Possession of Child PornographyRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that in federal court today KYLE CHRISTOPHER HEDDEN, 30, of Wake Forest, North Carolina, pled guilty before United States Magistrate Judge Robert B. Jones, Jr. to one count of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B). HEDDEN was named in a Criminal Information on July 15, 2014.
According to the investigation, on November 1, 2013, an agent working undercover involving a peer to peer file sharing network, discovered HEDDEN’S IP address downloading and sharing child pornography. On February 4, 2014, a search warrant was executed at HEDDEN’S home and during a non-custodial interview, HEDDEN confessed to downloading and storing child pornography on his laptop. A computer forensics examination of HEDDEN’S laptop and 16 harddrives found in his bedroom revealed approximately 250 videos and thousands of images of child pornography. At sentencing, set for the November 2014 term of court, HEDDEN faces a maximum penalty of 20 years imprisonment.
The criminal investigation of this case was conducted by the Federal Bureau of Investigation and Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
USP-Canaan Inmate Sentenced to 37 Months of Imprisonment for Assaulting Two Correctional OfficersRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that yesterday in Scranton United States District Court Judge Malachy E. Mannion sentenced Tarmaine Colbert, age 36, formerly of Phoenix, Arizona, to 37 months’ imprisonment for assaulting two correctional officers. On May 29, 2014, Colbert pleaded guilty to the assault which occurred on January 12, 2014, at the U.S. prison facility in Canaan.
According to United States Attorney Peter Smith, Colbert assaulted the officers when they attempted to do a pat down search of him for weapons. Colbert punched the two officers in the face resulting in minor injuries to the officers. Colbert was found to be in possession of a sharpened weapon commonly referred to as a shank.
The case was investigated by special agents of the Federal Bureau of Investigation and the Bureau of Prisons. Assistant United States Attorney John Gurganus prosecuted the case.
Tracy Woman Sentenced for Embezzling from Health Plan of San Joaquin and Agilent TechnologiesRead the Press Release
SACRAMENTO, Calif. — Shanika Brewer, 35, of Tracy, was sentenced today by Chief United States District Judge Morrison C. England Jr. to two and a half years in prison for wire fraud and embezzlement from a health care program, United States Attorney Benjamin B. Wagner announced. Judge England ordered her to begin her sentence on October 23, 2014. He ordered her to pay $1,248,770 in restitution.
According to court documents, from 2008 until 2011, Brewer worked in the accounts payable department of a Walnut Creek company called Agilent Technologies Inc. Brewer entered false information into the company’s accounting system that caused other departments to issue checks to vendors who provided personal goods and services to Brewer. Brewer took the checks home and mailed them out to pay her student loans, mortgage payments, and home improvements. She also used company funds to pay for her children’s school tuition and to deposit into her personal bank account. Brewer caused more than $1 million worth of checks to be issued for her own benefit.
In December 2012, Brewer was hired by Health Plan of San Joaquin, a publicly sponsored managed care plan administering state-funded Medi-Cal benefits for over 250,000 residents in San Joaquin and Stanislaus Counties. As the assistant controller, Brewer began manufacturing false invoices upon which she forged the signatures of other employees. After submitting the invoices, she obtained checks that she took home to use for her own benefit. Brewer caused approximately $100,000 in losses and expenses to Health Plan.
“Shanika Brewer embezzled from two employers, including a health care program, to fund a lavish lifestyle well beyond her means,” said U.S. Attorney Wagner. “Her conviction and this sentence are the result of excellent cooperation between San Joaquin County and the FBI.”
“Brewer abused her position as a trusted employee to craft an elaborate scheme to embezzle over $800,000 over the course of five years. The money was used to support a lifestyle for her and her family that was well beyond her legitimate earnings,” says Special Agent in Charge Monica Miller of the Sacramento Field office of the Federal Bureau of Investigation.
San Joaquin County District Attorney James P. Willett stated: “In this case, a County employee abused the trust we placed in her. As the County auditor was identifying red flags in the false invoices Brewer submitted, Brewer’s credit card company, First Premier Bank of South Dakota, alerted us that County checks were paying Brewer’s personal credit card bill. San Joaquin County District Attorney’s investigators on the case identified similar embezzlement from her immediate past employer. This federal prosecution followed, and we are gratified for the immediate response of the FBI and the US Attorney’s Office in coordination with our investigation of this multi-jurisdictional case.”
This case was the product of an investigation by the San Joaquin County District Attorney Investigations Bureau, IMPACT Unit and the Federal Bureau of Investigation. Assistant United States Attorney Jean M. Hobler prosecuted the case. The Financial Litigation Unit of the U.S. Attorney’s Office is taking action to recover funds for Brewer’s victims.
This case was done in connection with the President’s Financial Fraud Enforcement Task Force, established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. For more information on the task force, please visit www.StopFraud.gov.
Three Mississippi Men Charged After Louisiana Black Bear KilledRead the Press Release
Jackson, Miss – Travis Butler, 28, of Meridian, Chester Brad Williams, 49, of Meridian, and David Lucas Wimberly, 34, of Quitman, have been indicted for their involvement in the killing of a Louisiana Black Bear in Lauderdale County, Mississippi, and their subsequent obstruction of the investigation into that killing, U.S. Attorney Gregory K. Davis announced today. The Louisiana Black Blear is a protected species under the Endangered Species Act.
According to the indictment, on January 4, 2014, Butler caused another person to kill the bear. He and Williams then took the bear to Wimberly’s taxidermy to be mounted. When federal and state wildlife officers began their investigation into the killing on February 6, 2014, Butler, Williams and Wimberly destroyed evidence of their actions.
The defendants were arraigned on Tuesday, August 12, 2014, by U.S. Magistrate Judge F. Keith Ball and the case has been set for trial on October 6, 2014, before U.S. District Judge Henry T. Wingate.
The maximum penalty under the Endangered Species Act is up to 1 year in prison and a fine of up to $100,000. The maximum penalty for obstructing the investigation is up to 20 years in prison and a fine of up to $250,000.
The investigation in this case was conducted by the United States Fish and Wildlife Service and the Mississippi Department of Wildlife, Fisheries and Parks.
The public is reminded that an indictment is a formal charge that a defendant has committed a violation of the federal criminal laws. All defendants are presumed innocent unless and until proven guilty.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Texas Resident Charged with Tax Fraud and Financial Institution FraudRead the Press Release
A Texas woman who was the manager of a North Carolina tax preparation business was indicted today for multiple tax crimes and making false statements to banks on loan applications, the Justice Department and Internal Revenue Service (IRS) announced.
Tamny Denise Westbrooks of Fulshear, Texas, was charged in an indictment alleging between 2004 through 2009, she was the day-to-day manager of JATS Tax Service, a tax preparation business located in Charlotte, North Carolina. Westbrooks underreported her net profits from JATS by overstating business expenses for tax years 2007, 2008 and 2009. She also obstructed and impeded the IRS by filing false tax returns for herself and others and by paying workers in cash while failing to file the required forms reporting their compensation. The indictment further alleges that Westbrooks made false statements to her mortgage and automobile lenders on loan applications submitted in 2005 and 2007.
A trial date has not been scheduled. If convicted, Westbrooks faces statutory maximum sentences of three years in prison and a fine of $250,000 on each of the filing false return charges and the obstruction charge, and a statutory maximum sentence of 30 years in prison and a fine of $1 million for each of the bank fraud charges.
The case was investigated by special agents of IRS – Criminal Investigation. Trial Attorneys Kevin Lombardi and Hayden Brockett of the Justice Department’s Tax Division are prosecuting the case.
An indictment merely alleges that a crime has been committed and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division website .
Statement by Attorney General Eric Holder on Latest Developments in Ferguson, MissouriRead the Press Release
Attorney General Eric Holder released the following statement Thursday following his meeting earlier today with President Obama to discuss the latest developments in Ferguson, Missouri:
“This morning, I met with President Obama to discuss the events in Ferguson, Missouri. Like the President, I extend my heartfelt condolences to the family of Michael Brown. While his death has understandably caused heartache within the community, it is clear that the scenes playing out in the streets of Ferguson over the last several nights cannot continue.
“For one thing, while the vast majority of protests have been peaceful, acts of violence by members of the public cannot be condoned. Looting and willful efforts to antagonize law enforcement officers who are genuinely trying to protect the public do nothing to remember the young man who has died. Such conduct is unacceptable and must be unequivocally condemned.
“By the same token, the law enforcement response to these demonstrations must seek to reduce tensions, not heighten them. Those who peacefully gather to express sympathy for the family of Michael Brown must have their rights respected at all times. And journalists must not be harassed or prevented from covering a story that needs to be told.
“At a time when we must seek to rebuild trust between law enforcement and the local community, I am deeply concerned that the deployment of military equipment and vehicles sends a conflicting message. At my direction, Department officials have conveyed these concerns to local authorities. Also at my direction, the Department is offering – through our COPS office and Office of Justice Programs – technical assistance to local authorities in order to help conduct crowd control and maintain public safety without relying on unnecessarily extreme displays of force. The local authorities in Missouri have accepted this offer of assistance as of this afternoon.
“Department officials from the Community Relations Service are also on the ground in Missouri to help convene law enforcement officials and civic and faith leaders to plot out steps to reduce tensions in the community. The latest such meeting was convened in Ferguson as recently as this morning. Over time, these conversations should consider the role that increased diversity in law enforcement can play in helping to build trust within communities.
“All the while, the federal civil rights investigation into the shooting incident itself continues, in parallel with the local investigation into state law violations. Our investigators from the Civil Rights Division and U.S. attorney’s office in Missouri have already conducted interviews with eyewitnesses on the scene at the time of the shooting incident on Saturday. Our review will take time to conduct, but it will be thorough and fair.”
St. Johns County Man Pleads Guilty to Producing Child Pornography in Nationwide Sextortion CaseRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Lucas Michael Chansler (age 30, St. Johns) has pleaded guilty to nine counts of producing child pornography. On each of these counts, Chansler faces a minimum mandatory sentence of 15 years, up to 30 years in federal prison, $250,000 in fines, and a potential life term of supervised release. Chansler has been in the custody of the United States Marshals Service since September 2, 2010.
According to court documents, beginning in or about 2007, and continuing until on or about January 8, 2010, Chansler used computers and interactive computer services to transmit threatening communications to several minor female victims located all across the United States. Chansler transmitted these threatening communications with the intent to extort things of value from the minors, including digital photographs and webcam videos of the minor female victims in various states of undress, exposing themselves and engaging in sexually explicit conduct. Chansler engaged in a pattern of extortion in which he would at first pretend to be a friend, acquaintance, or admirer of the minor victims on social networking websites such as MySpace and Facebook. Chansler used more than 60 different online screen names to conceal his identity and location.
After gaining some measure of trust from a particular minor victim, Chansler would request that the minor victim engage in a live video chat session with him via the internet. During this video chat session, Chansler would use a computer program to record the video session without the knowledge of the minor victim. Chansler would ask the minor victim to expose her breasts or genitalia during the session. Often Chansler would entice the minor victims to so expose themselves by showing them streaming video of a minor male exposing himself or engaging in masturbation. Unbeknownst to the minor victims, Chansler did not show himself during these webcam video sessions but rather would use sexually explicit videos of other males which he had collected. If a minor victim did expose herself to Chansler during a video chat session, this conduct would be recorded by Chansler. He then would send a copy or portion of the video recording to the minor victim. Chansler would then demand that the minor victim send him additional and more graphic sexually explicit digital still images or webcam video. Chansler would inform the minor victim that if she did not comply with his demand, he would injure the minor victim’s reputation by sending the sexually explicit images and/or videos to her friends or by posting the images and/or videos to a public website.
Some of the minor victims complied with Chansler’s demands, while others did not. With some of those who complied, Chansler carried on a continuing pattern of extortion by sending more threatening communications and demanding additional sexually explicit images and videos from the minors. On at least one occasion, Chansler was able to locate a minor victim who had established a new online persona in an effort to escape from Chansler. Chansler had previously coerced this minor to produce and transmit to him dozens of sexually explicit images of her over an extended period of time. Using communications routed through a proxy server in Brazil, Chansler reestablished contact with this minor victim and continued his attempts to extort sexually explicit images from her.
Using information received from the parents of one of Chansler’s minor victims and working with the National Center for Missing and Exploited Children, FBI agents were able to identify Chansler and locate his residence in St. Johns County. On January 8, 2010, law enforcement agents executed a federal search warrant at Chansler’s residence.
During the execution of the search warrant, Chansler was interviewed and stated that that he used social networking sites to meet girls who ranged in age from 13 to 18 years old. He targeted underage girls because adult women were “too smart” to fall for his scheme. These girls would agree to video chat with Chansler on a particular video chat website. Chansler stated that he saved all files that he obtained from his victims in separate folders labeled with each victim’s name. Subsequent forensic analysis of Chansler's computer revealed that the computer contained two different hard disk drives, one of which contained images and videos of child pornography. This hard drive contained numerous folders characterized and labeled by the name of the minor victims. Many of the folders contained information specific to the particular victim, such as screen captures of the victim’s social networking webpages, written logs of online chats between the victim and Chansler, and pornographic webcam videos and/or digital photos. In several of the videos, victims are seen crying and pleading with Chansler not to force them to engage in sexually explicit conduct.
The forensic analysis of Chansler’s hard disk drive revealed he had targeted approximately 350 different minor victims. Among these were 103 minor victims who have been positively identified. In total, Chansler’s computer media contained approximately 80,000 images and videos, many of which depicted what appeared to be post-pubescent minors engaged in sexually explicit conduct. Over 3,000 videos were recovered, and at least 200 of these videos depicted child pornography.
This case was investigated by the Federal Bureau of Investigation, the National Center for Missing and Exploited Children, the Florida Attorney General's Office, the St. Johns County Sheriff=s Office, and numerous other state and local law enforcement agencies working in Internet Crimes Against Children (“ICAC”) task forces across the United States and Canada.
It is being prosecuted by Assistant United States Attorney D. Rodney Brown. It is another 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.
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Sentencings for August 8-14, 2014Read the Press Release
Brittany Mercer, 25, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on August 14, 2014, for attempting to pass counterfeit obligations. Mercer received two years of supervised probation and was ordered to pay a $100.00 special assessment. This case was investigated by the U.S. Secret Service.
Eli Jaure, 28, of Rawlins, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on August 12, 2014, for being a felon in possession of a firearm. He received 51 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Stephen M. Granieri, 39, of Colorado, was sentenced by Federal District Court Judge Scott W. Skavdahl on August 12, 2014, for being a felon in possession of a firearm. Granieri was arrested in Grand Teton National Park, Wyoming. He received 27 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. National Park Service.
Porsha Slones, 27, of Orlando, Florida, was sentenced by Federal District Court Judge Alan B. Johnson on August 11, 2014, on one count of use of unauthorized access devices to obtain $1,000 or more and aiding and abetting and three counts of aggravated identity theft and aiding and abetting. Slones was arrested in Green River, Wyoming. She received 46 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $400.00 special assessment and restitution in the amount of $235,903.59, joint and several with co-defendants. This case was investigated by the U.S. Secret Service.
Matthew Taber Annable, 40, of Arizona, was sentenced by Federal District Court Judge Scott W. Skavdahl on August 8, 2014, for theft of ATM machines and aiding and abetting. Annable was arrested in Casper, Wyoming. He received 14 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and $113,820.00 in restitution. This case was investigated by the Douglas and Casper Police Departments, the Wyoming Highway Patrol, and the Federal Bureau of Investigation.
Samuel Elijah Hayes, 31, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on August 8, 2014, for being a felon in possession of a firearm. Hayes was arrested in Casper, Wyoming. He received 57 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Michael A. Andersen, 43, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge, Nancy D. Freudenthal on August 8, 2014, for conspiracy to possess with intent to distribute, and to distribute, 6,350 grams of methamphetamine. Andersen was arrested in Cheyenne, Wyoming. He received 70 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the U.S. Drug Enforcement Administration, the Internal Revenue Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Victor Ivan Holguin-Ramirez, 36, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on August 8, 2014, for illegal re-entry of a previously deported alien into the United States. Holquin-Ramirez was arrested in Douglas, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.Rochester man pleads guilty in sex trafficking caseRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Marques Williams, 28, of Rochester, N.Y., pleaded guilty to sex trafficking of a minor before U.S. District Judge David G. Larimer The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated the FBI received information that the defendant advertised a fifteen-year-old female as a prostitute on the Internet classified advertising service, Backpage.com. The minor victim was interviewed by the FBI and said that between July 2011 and September 2011, she worked as a prostitute for Williams. During the plea proceeding, Williams admitted to paying and posting ads for the minor for prostitution activities on Backpage.com, knowing that the minor was under the age of 18 years.
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.The plea is the culmination of an investigation on the part of the FBI's Cyber Crimes Task Force, which includes the Monroe County Sheriff's Office, under the direction of Sheriff Patrick O'Flynn, the Rochester Police Department under the direction of Chief Michael Ciminelli, Special Agents with Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, Special Agent in Charge and Special Agents of the Federal Bureau of Investigation.
Sentencing will be scheduled at a later date.Rhode Island Man Sentenced for Failing to Register as A Sex OffenderRead the Press Release
BOSTON - A Rhode Island man was sentenced today for failing to register as a sex offender.
Ryan Hathaway, 32, was sentenced by U.S. District Court Judge Rya W. Zobel to 24 months in prison and five years of supervised release. In April 2014, Hathaway pleaded guilty to failure to register as a sex offender.
This is Hathaway’s third conviction for failure to register as a sex offender. He is required to register because of his 2004 Massachusetts state court conviction for indecent assault and battery on a child under age 14. He was previously convicted in 2011 for failing to register. In 2012, he was convicted again for failing to register, and received a jail term. He was released to Massachusetts in October 2013 and within a month cut his GPS tracking bracelet and absconded to Rhode Island, without registering as a sex offender as required. In December 2013, Hathaway was arrested in Pawtucket.
United States Attorney Carmen M. Ortiz and John Gibbons, U.S. Marshal of the U.S. Marshals Service, District of Massachusetts, made the announcement today. The case was prosecuted by Timothy Landry of Ortiz’s Major Crimes Unit.
Recent Child Exploitation Cases: 3 Indictments, One Guilty Plea and One 14-Year SentenceRead the Press Release
SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner announces the following three indictments, a guilty plea, and a sentencing in cases involving the exploitation of children.
Sacramento Man Indicted for Production of Child Pornography and Enticement of a Minor
George Hristovski, 55, of Sacramento, was indicted today for attempted production of child pornography and attempted enticement of a minor. According to court documents, Hristovski posted an online advertisement seeking a mother who was willing to introduce him to their daughter for the purpose of having sex with the girl. He was arrested on August 4, 2014, after making explicit demands for pornographic images of a 13-year-old girl that he believed he was communicating with, and for attempting to arrange a meeting with the girl for the purpose of having sex with her.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Kyle Reardon and Michele M. Beckwith are prosecuting the case. If convicted, Hristovski faces 10 years to life in prison and a $250,000 fine.
Paradise Man Indicted for Production of Child Pornography and Enticement of a MinorA federal grand jury returned a 10-count indictment today against Jordan James Kirby, 22, of Paradise, charging him with production of child pornography and enticement of a minor. This case is the product of an investigation by the Federal Bureau of Investigation and the Paradise Police Department. Assistant U.S. Attorneys Kyle Reardon and Sherry Haus are prosecuting the case.
Sacramento Man Indicted for Possessing Child Pornography
A federal grand jury returned an indictment today against Christopher Raymond Smithson, 34, of Sacramento, charging him with possession of child pornography. According to court documents, in June 2014, Smithson possessed visual depictions of minors engaged in sexually explicit conduct. Titles of the visual depictions referred to children as young as four years old. If convicted, Smithson faces a maximum statutory penalty of 10 years in prison and a $250,000 fine.
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Special Assistant U.S. Attorney Josh F. Sigal is prosecuting the case.
The charges in the above indictments are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sacramento Pimp Pleads Guilty to Sex Trafficking of a Minor (No. 2:13-cr-030 JAM)
On Tuesday, August 12, 2014, Keon Jamar Nunnelly, 30, of Sacramento, pleaded guilty to sex trafficking of a minor. According to court documents, Nunnelly posted online prostitution ads for a 16-year-old girl in Sacramento and Anaheim. He managed the victim by providing directions on when and where she should work, transporting her to hotels, and providing protection and security. The defendant knew that she was a minor and would be caused to engage in commercial sex acts. Nunnelly is scheduled to be sentenced by U.S. District Judge John A. Mendez on November 18, 2014. Nunnelly faces a maximum statutory penalty of not less than 10 years and up to life in prison and a $250,000 fine.
This case is the product of an investigation by the Federal Bureau of Investigation’s Innocence Lost Task Force. Assistant U.S. Attorney Kyle Reardon is prosecuting the case.
Any sentence in these cases would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Antelope Man Sentenced for Receiving Child Pornography (No. 2:12-CR-0417 TLN)
On Thursday, August 7, 2014, U.S. District Judge Troy L. Nunley sentenced Gerald Ratulowski, 69, of Antelope, to 14 years in prison for receiving child pornography. According to court documents, between June 2012, and September 2012, Ratulowski shared files of child pornography through an Internet file-sharing service. Several thousand images and videos of child pornography were found in his computer, including images of sadistic and masochistic conduct.
This case was the product of an investigation by the Sacramento Internet Crimes Against Children Task Force. Assistant U.S. Attorney Kyle Reardon prosecuted the case.
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 U.S. 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.
Puerto Rico Businessman Pleads Guilty to Bribing a Puerto Rico Superior Court JudgeRead the Press Release
A Puerto Rico businessman pleaded guilty today to bribing Puerto Rico Superior Court Judge Manuel Acevedo-Hernandez, who presided over the businessman’s vehicular homicide trial and acquitted him of all charges.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI’s San Juan Division made the announcement.
According to court documents, Lutgardo Acevedo-Lopez, 39, was a certified public accountant in Aguadilla, Puerto Rico. On June 30, 2012, a car driven by Acevedo-Lopez collided with another car, resulting in the death of the other car’s driver. Acevedo-Lopez was charged with criminal vehicular homicide in connection with the incident. Acevedo-Hernandez, a supervisory superior court judge in the Aguadilla judicial region of Puerto Rico, presided over the case and acquitted Acevedo-Lopez of all charges.
In his plea agreement, Acevedo-Lopez admitted that he bribed Acevedo-Hernandez to use his official position as a judge for Acevedo-Lopez’s benefit. Specifically, Acevedo-Lopez admitted that he used an intermediary to bribe Acevedo-Hernandez by paying taxes owed by Acevedo-Hernandez, paying for the construction of a garage for Acevedo-Hernandez, and providing Acevedo-Hernandez with a motorcycle, clothing and accessories, including cufflinks and a watch. In exchange, Acevedo-Hernandez acquitted Acevedo-Lopez of all charges.
Acevedo-Lopez is scheduled to be sentenced on Dec. 8, 2014 before Chief U.S. District Judge Aida M. Delgado-Colón in San Juan, Puerto Rico.
Charges remain pending against Acevedo-Hernandez, who was charged with bribery-related offenses in an indictment unsealed on May 28, 2014, in the District of Puerto Rico. The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the FBI’s San Juan Division and is being prosecuted by Trial Attorney Peter Mason of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Timothy Henwood and Jose Capo of the District of Puerto Rico.
Citizens of Puerto Rico who have information about alleged public corruption are encouraged to contact the FBI’s San Juan Division at (787) 754-6000.Providence Woman Sentenced to 4 Years in Federal Prison for Trafficking Cocaine and Crack Cocaine in South Kingstown and NarragansettRead the Press Release
PROVIDENCE, R.I. – Ashley Sekator-Graham, 31, of Providence, was sentenced today to 48 months in federal prison for her role in a drug trafficking conspiracy to distribute cocaine and crack cocaine in South Kingstown and Narragansett, announced United States Attorney Peter F. Neronha, South Kingstown Police Chief Vincent Vespia, Jr., Narragansett Police Chief Dean F. Hoxsie, and Michael Ferguson, Acting Special Agent in Charge of the DEA’s New England field division.
At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Sekator-Graham to serve 5 years supervised release upon completion of her prison term. Sekator-Graham pleaded guilty on April 16, 2014, to one count each of possession of crack cocaine with the intent to distribute and conspiracy to possess cocaine with the intent to distribute.
According to court documents and information presented to the court, an investigation by South Kingstown Police, Narragansett Police and the Rhode Island DEA Drug Task Force in July 2013 into the distribution of cocaine and crack cocaine in South Kingstown and Narragansett resulted in the seizure of nearly 109 grams of crack cocaine, 200 grams of cocaine powder, two firearms, $93,701 in cash, and the arrest on July 18, 2013, of Ashley Sekator-Graham and her husband, Damon Graham.
According to court documents, the investigation, which began in early July 2013, included electronically monitored drug sales which led to the execution of court authorized search warrants on July 18, 2013, at the couple’s then Narragansett residence and at a self-storage unit in Narragansett. Law enforcement seized 108.8 grams of crack cocaine, a 9mm pistol, ammunition and $3,751 in cash from the couple’s residence and 201 grams of cocaine, a .38 caliber revolver, hollow-point ammunition and a safe containing $89,950 in cash from the self-storage unit.
Damon Graham, 34, pleaded guilty in U.S. District Court on April 23, 2014, to one count each of possession with the intent to distribute 28 grams or more of crack cocaine, conspiracy to possess with the intent to distribute 28 grams or more of crack cocaine, possession with the intent to distribute cocaine, conspiracy to possess with the intent to distribute cocaine, and two counts of being a felon in possession of a firearm. He is scheduled to be sentenced by U.S. District Court Judge Mary M. Lisi on October 17, 2014.
The cases are being prosecuted by Assistant U.S. Attorney Pamela E. Chin, with the assistance of Assistant U.S. Attorney Paul F. Daly, Jr.
Rhode Island State Police and agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives assisted South Kingstown Police, Narragansett Police and the Rhode Island DEA Drug Task Force 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]Pottsboro TX Man Sentenced to 27 Months, $685,000.00 Restitution for Wire FraudRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JIMMY DALE STRAHAN, age 63, of Pottsboro, Texas, was sentenced on July 30, 2014, to 27 months imprisonment, followed by 36 months of supervised release for Wire Fraud, in violation of Title 18, United States Code, Section 1343. STRAHAN was also ordered to pay $685,347.25 in restitution.
The charge arose from an investigation by the Durant Police Department and the United States Secret Service. The defendant was indicted in June 2013 and entered a plea of guilty in July 2013.
The Indictment alleged on or about March 12, 2010, in the Eastern District of Oklahoma, the defendant, caused to be transmitted by means of wire communication in interstate commerce the signals and sounds from a bank account at Shamrock Bank, Caddo, Oklahoma, transferring the funds to a bank account at Landmark Bank, Pottsboro, Texas.
The investigation revealed the STRAHAN, President of Yellowjacket Energy Services, Inc. (YES) marketed and sold shares in YES by falsely representing to potential investors that the company was managed by an Executive Management Team. STRAHAN prepared a fraudulent document that listed the Management Team, which consisted of STRAHAN and seven other individuals with strong oil and gas experience including an attorney, accountant, banker, engineer and geologist, when in fact none of these individuals were owners or advisors to the company. STRAHAN also falsely represented the profitability of the company in an effort to attract investors.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Melody Nelson represented the United States.
Port Arthur Woman Guilty in Mail Fraud ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 32-year-old Port Arthur, Texas woman has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Shawnta Rene Bell Jones pleaded guilty to conspiracy to commit mail fraud today before U.S. Magistrate Judge Keith F. Giblin.
According to information presented in court, from November 2006 to August 2013, Jones was involved in a conspiracy with others to defraud insurance providers and other businesses by staging automobile collisions and then submitting claims for property damage and personal injury by U.S. mail and other carriers. On Mar. 4, 2012, Jones and others staged an automobile accident in Port Arthur and then submitted fraudulent insurance claims to Farmers Insurance and Old American Mutual Insurance Company. As a result of the fraudulent claim, payment was made by U.S. mail to defendants. Jones’ received less than $5,000 for her part in the conspiracy.
On June 4, 2014, a federal grand jury returned an indictment charging Jones and Port Arthur residents James Lee Jones, Sr., 46; Charles Christopher Mosley, 34; Martin James Eaglin, 39; Edmund Hurts III, 27; and Kristopher Bernard, 28, with conspiracy to commit mail fraud and 17 counts of mail fraud.
Jones faces up to 20 years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by the Federal Bureau of Investigation, Port Arthur Police Department, National Insurance Crime Bureau and Farmers Insurance Investigations. This case is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice and Special Assistant U.S. Attorney Catherine Cockrell.
Philadelphia Man Pleads Guilty to Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 34-year-old Philadelphia man pleaded guilty today before U.S. District Court Judge Malachy E. Mannion to participating in a conspiracy to distribute heroin in the Hazleton area of Pennsylvania.
According to United States Attorney Peter Smith, the defendant, Edwin Laureano-Suarez, admitted to conspiring with others to distribute heroin between May 2014 and June 18, 2014.
Laureano-Suarez was charged in a criminal Information filed on August 12, 2014, as a result of an investigation by the Federal Bureau of Investigation and Scranton Police.
Judge Mannion ordered a pre-sentence investigation to be completed. Sentencing will be scheduled after the completion of the pre-sentence report.
Laureano-Suarez faces up to 20 years in prison and a $1 million fine.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
****Pennsylvania Couple Sentenced to Prison for Using Stolen Identities to Scam Student Loan Money from Online UniversitiesRead the Press Release
CAMDEN, N.J. – An East Stroudsburg, Pennsylvania, couple was sentenced to prison today for stealing $272,247 in student loan proceeds from Liberty University and American Public University by using stolen identities to direct the money to addresses where they could intercept it, U.S. Attorney Paul J. Fishman announced.
Stephanie Mitchell, 37, and Ronzell Mitchell, 38, were sentenced to 12 months and 28 months in prison, respectively. They previously pleaded guilty before U.S. District Judge Renée Marie Bumb to separate informations charging each with one count of conspiracy to commit mail fraud. Judge Bumb imposed the sentences today in Camden federal court.
According to documents filed in this case and statements made in court: From Aug. 19, 2010, through March 21, 2012, the Mitchells fraudulently obtained U.S. Department of Education (ED) funds for their own use. Stephanie Mitchell regularly used a box at a UPS Store located in Montvale, New Jersey, that was opened using the name and driver’s license of another person. The couple then contacted online universities Liberty and American and posed as students for whom student loans had been issued, causing the proceeds of numerous credit balance checks and debit cards to be redirected to the UPS Store and a vacant house located in Stroudsburg, Pennsylvania.
Stephanie and Ronzell Mitchell admitted several specific instances in which they redirected student loans intended for others to addresses they controlled, fraudulently obtaining $272,247 in ED funds.
In addition to the prison term, Judge Bumb sentenced the Mitchells each to three years of supervised release, fined them each $35,000, and ordered them to pay total restitution of $272,247, which has been paid in full.
U.S. Attorney Fishman credited special agents of the ED Office of the Inspector General, Northeastern Regional Office, under the direction of Special Agent in Charge Brian Hickey; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, and special agents of the U.S. Secret Service, under the direction of James Mottola, Special Agent in Charge of the Newark Field Office, with the investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorney Deborah J. Gannett of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
14-293Defense counsel: Ronzell Mitchell: Paul Brickfield Esq., River Edge, N.J.
Stephanie Mitchell: Susan Cassell Esq., Ridgewood, N.J.New York Heart Center to Pay More Than $1.33 Million to Settle Allegations of False Claims Act and Stark Law ViolationsRead the Press Release
Cardiology Practice Allegedly Compensated Physicians for Improper Referrals
ALBANY, NEW YORK: Cardiovascular Specialists, P.C., d/b/a New York Heart Center (NYHC) – a group practice of cardiologists with offices throughout central and northern New York – has agreed to pay the United States $1,336,636.98 plus interest to resolve allegations that it violated the False Claims Act and the Physician Self-Referral Law (commonly known as the Stark Law) by knowingly compensating its physicians in a manner that violated federal law, announced United States Attorney Richard S. Hartunian.
The Stark Law is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives that encourage referrals for unnecessary services, which drive up health care costs for Medicare beneficiaries and the Medicare program. The law prohibits physicians from referring Medicare beneficiaries to health care providers, including providers in their own group medical practices, for certain services if their financial relationships with the provider do not fall within an exception to the Stark Law. In the case of financial relationships between a medical practice and its physicians, the exceptions do not permit practices to compensate physicians in a manner that directly takes into account the volume or value of the physician’s referrals for services that are not personally performed by the ordering physician. If a group’s financial relationship with a physician does not satisfy an exception, the group cannot bill Medicare for the physician’s prohibited referrals.
The settlement announced today resolves allegations that, from September 2007 through August 2008, compensation for each NYHC partner-physician was determined using a formula that took into account the volume or value of that physician’s referrals for nuclear scans and CT scans, in violation of the Stark Law and the False Claims Act. The government’s investigation revealed that NYHC adopted this formula with knowledge that it could violate the Stark Law.
United States Attorney Hartunian said: “Today’s settlement is another example of this office’s commitment to ensure that services paid for by federal health care programs are based on the best interests of patients rather than the financial interests of referring physicians. The United States Department of Health and Human Services’ Office of Inspector General should be commended for bringing this issue to light and for its outstanding investigation.”
“Medical decisions should always be made on the basis on what’s best for the patient’s health, not the physician’s finances. The compensation system in place in this case had the potential to influence medical judgment, which would be unacceptable,” said Special Agent in Charge Thomas O’Donnell of the Department of Health and Human Services Office of Inspector General (HHS-OIG), New York region.
The investigation and settlement were the result of a coordinated effort between the United States Attorney’s Office for the Northern District of New York and HHS-OIG, with the assistance of the Department of Justice’s Civil Division. Locally, the United States was represented by Assistant United States Attorney Adam J. Katz.
New Jersey Man Sentenced to Prison for Heroin TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 37-year-old New Jersey man was sentenced to 14 months in federal prison yesterday by U.S. District Court Judge Malachy E. Mannion for possession with intent to distribute heroin in Kingston, Pennsylvania, on January 3, 2014.
According to United States Attorney Peter Smith, the defendant, George Wormley, on May 1, 2014, pleaded guilty to committing the offense.
Wormley was indicted by a grand jury on March 25, 2014, as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Kingston Police.
Judge Mannion also ordered Wormley to be placed on supervised release for three years after serving his prison sentence, and to pay a $100 special assessment.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Muskogee Man Sentenced to 60 Months for Methamphetamine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JOSHUA RAY HIGGINS, age 27, of Muskogee, Oklahoma, was sentenced to 60 months imprisonment, followed by 4 years of supervised release for Possession with Intent to Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
The charge arose from an investigation by the Muskogee Police Department and the Drug Enforcement Administration. The defendant was indicted in December 2013 and pled guilty in February 2014.
The Indictment alleged that on or about November 15, 2013, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II Controlled Substance.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Merritt Island Resident Arrested for Child PornographyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the arrest and criminal complaint charging James Otis Liptak (36, Merritt Island) with possession and distribution of images depicting child pornography. If convicted, Liptak faces a maximum penalty of 20 years in federal prison.
According to the complaint, Liptak used his computer and peer-to-peer software programs to search the Internet for, download, share and distribute images of child pornography.
A complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Federal Bureau of Investigation and the Brevard County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Bruce S. Ambrose.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Member of Cherry Hill Group ‘Little Spelman’ Sentenced to 35 Years in Prison for Racketeering Conspiracy, Including Drug Dealing and Two MurdersRead the Press Release
Cherry Hill Area Shootings and Murders Attributed to Rival Drug Gangs
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Davon Martin, age 26, of Baltimore, Maryland today to 35 years in prison, followed by five years of supervised release, for conspiracy to participate in a racketeering enterprise, related to his drug dealing and violence in the Cherry Hill section of Baltimore.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.“Many of the shootings and murders in Baltimore City result from disputes between rival drug gangs,” said U.S. Attorney Rod J. Rosenstein. “Thanks to a lengthy and intensive investigation, we will hold accountable the criminals who turned Cherry Hill into a war zone.”
According to his plea agreement, from at least 2003 to 2013, Davon Martin was a member of a group known as “Little Spelman” in the “down the hill” area of Cherry Hill. This group committed acts of robbery, homicides, non-fatal shootings and drug distribution, to include crack cocaine, heroin, cocaine and marijuana. From 2009 to 2011, Martin and Dewayne Jones, another member of Little Spelman, operated a crack cocaine distribution “shop” out of an apartment located on Round Road. Martin and others sold at least two kilograms of crack cocaine from the apartment on Round Road. On at least one occasion, while in possession of a firearm, Martin robbed an individual who had sold him some bad cocaine. Martin admitted he has also committed other robberies related to his drug distribution.Martin admitted that on January 20, 2011, he shot and killed Rhidell Price, a member of a rival group operating in Cherry Hill known as “Up Da Hill,” in the rear of 2900 Denham Circle. After receiving a call that Price was in the area, Jones drove Martin to Denham Circle where Rhidell Price was getting out of a vehicle parked on the street. Martin got out of the vehicle and began shooting at Price, chasing after Price and ultimately killing him. Martin killed Price in retaliation for Martin and Jones being shot at by Up Da Hill members a few days earlier. Dewayne Jones was subsequently shot and killed on August 28, 2011.
Two days after Martin killed Price, on January 22, 2011, Little Spelman associate Harry Hicks was shot and killed by Up Da Hill members in retaliation for Price’s murder. On April 9, 2011, Martin shot and killed Up Da Hill member Dwight Taylor at a barbershop on W. Saratoga Street in Baltimore, in retaliation for Hicks’ murder. During the murder, Martin was wearing a black jacket and a black mask which he discarded in a nearby dumpster on Clay Street. Both the mask and jacket were recovered by police from the dumpster. The DNA recovered from both the face mask and the jacket matched Martin’s DNA. A ballistics comparison of the .45 caliber firearm that Martin used to kill Taylor revealed that it was the same gun used on January 28, 2011 by Dominic Hope, another Little Spelman associate, and the former leader of Little Spelman, to shoot Up Da Hill member Antione White, who was leaving the funeral of Rhidell Price. Dominic Hope was subsequently shot and killed on January 20, 2012.
Earlier this year, Martin pleaded guilty in Baltimore City Circuit Court to first degree murder and use of a firearm in a crime of violence for the fatal shooting of Dwight Taylor. Martin is scheduled to be sentenced in that matter on September 12, 2014.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith and Brooke Carey, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Medical Assistant Pleads Guilty After Stealing Patients’ Identities from the Memorial Healthcare System DatabaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that La Toya Yvette Tillman, 33, of Hollywood, pled guilty today to one count of possessing fifteen or more unauthorized access devices with the intent to defraud, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Sentencing is scheduled for October 24, 2014 at 9:30 a.m. before U.S. District Judge Darrin P. Gayles. At sentencing, Tillman faces up to ten years in prison for the access device charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
According to court documents, Tillman, who worked as a medical assistant at Gastroenterology Consultants in Hollywood, confessed to accessing the Memorial Healthcare System database through her computer at work to steal patient identities, including names, dates of birth, and social security numbers, so that she could sell them. She sold an individual approximately 2,000 identities for $1 each, and the individual told her that he used the identities to file fraudulent tax returns. In addition, in her car, Tillman had a list of 114 identities, including names, dates of birth, and social security numbers. Tillman knew that the victims did not authorize her to possess their personal information.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
McAlester Man Sentenced to 168 Months for Methamphetamine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that DANIEL RAY JOHNSON, age 32, of McAlester, Oklahoma, was sentenced to 168 months imprisonment, followed by 5 years of supervised release for Possession with Intent to Distribute Methamphetamine, 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 18 District Attorney’s Drug Task Force and the Drug Enforcement Administration. The defendant was indicted in March 2014 and pled guilty in May 2014.
The Indictment alleged that from on or about January 6, 2014, to January 11, 2014, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute 50 grams or more of actual methamphetamine, a Schedule II Controlled Substance.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Marydel Woman and 3 Others Indicted on Charges Related to A Scheme to Embezzle over $1 Million from Her EmployerRead the Press Release
Greenbelt, Maryland - A federal grand jury has indicted four individuals in connection with a scheme to steal over $1 million from a consulting company. The following individuals face conspiracy and wire fraud charges:Janice McCumbie, age 45, of Marydel, Maryland; Leonard Smedley II, age 35, of Capitol Heights, Maryland; Amber Gayleard, age 29, of Schuylkillhaven, Pennsylvania; and
Brian Hooper, age 42, of Woodbridge, Virginia.
The indictment was returned on August 6, 2014, and unsealed today upon the arrest of the defendants.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the indictment, McCumbie worked for a global consulting business that served clients in various industries and had offices in Maryland and elsewhere. Clients paid large retainers to secure consulting services. The consulting company would issue refund checks to the clients in certain circumstances, including when a client’s retainer exceeded the amount of work that the consulting company actually performed or when the client made duplicate payments to the consulting company. The consulting company assigned the Accounts Receivable group (the AR group) and the Accounts Payable group (the AP group) to handle the refund process. McCumbie worked for the AR group and her duties included coordinating client refunds.
The 11-count indictment alleges that between August 2009 and November 2013, McCumbie created and submitted false documentation to the consulting company’s AP group, falsely representing that refund checks should be issued to Gayleard and Smedley. McCumbie allegedly caused the consulting company to issue at least 39 fraudulent refund checks, totaling, $848,024.48, to Smedley, who was not a client of the consulting company. The indictment alleges that Smedley cashed the fraudulent checks and shared the proceeds with McCumbie and Hooper, who was a former employee of the consulting company. The indictment alleges that McCumbie caused 17 fraudulent refund checks, totaling $217,695.57, to be issued to her niece, Gayleard, who cashed the checks and shared the proceeds with McCumbie.
The indictment seeks forfeiture of at least $1,065,720, believed to be the proceeds of the wire fraud conspiracy.
The defendants face a maximum sentence of 20 years in prison for the conspiracy and for each of 10 counts of wire fraud. Janice McCumby, Leonard Smedley II, and Brian Hooper have all had an initial appearance in U.S. District Court in Greenbelt. Amber Gayleard had her initial appearance in U.S. District Court in the Middle District of Pennsylvania. All four defendants were released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Leah J. Bressack and David I. Salem, who are prosecuting the case.
Man Who Stole Explosives from Forest Service Pleads GuiltyRead the Press Release
BILLINGS - A Wyoming man who stole over 500 pounds of explosives from the U.S. Forest Service has pleaded guilty to federal charges arising from the theft. Budd Nesius, a 33-year old resident of Wheatland, Wyoming pleaded guilty to possession of stolen explosives. He faces 10 years in prison, $250,000 in fines and 3 years supervised release. Sentencing has been set for December 4, 2014 in Billings before U.S. District Judge Susan Watters. Nesius is being detained pending sentencing.
In an Offer of Proof filed by Assistant U.S. Attorney Bryan Whittaker, the government told the court that in April 2013 in Red Lodge, the defendant knowingly possessed approximately 500 pounds of stolen explosive materials. On the weekend of April 26, 2013, Nesius met a female friend at the Yodeler Motel in Red Lodge to go camping. After picking up the female, the two drove into the mountains. At one point, the two of them split up and she returned to Red Lodge to get food. Nesius continued driving around looking for a place to camp and eventually drove down a dirt road and arrived in the area of a U.S. Forest Service ("USFS") bunker which contained explosives. This explosives magazine/bunker is located several miles west of Red Lodge on USFS property. Nesius saw signs in the immediate vicinity warning of the explosives. Nesius later joined back up with the woman and told her that he intended to break into the bunker he found and steal explosives. Nesius thought he might be able to sell the explosives and make a little money.
The female parked at the bottom of the dirt road leading up to the bunker to be a "lookout." Shortly before dark, Nesius walked down to the bunker and cut the locks with a pair of bolt cutters. Once the door was open, Nesius took one box of explosives and attempted to walk back to where his truck was parked above the bunker. Because the explosives box was heavy, he left the box there and returned to his truck. Nesius then drove down next to the bunker, where he loaded approximately 10 boxes of explosives into the back of his truck.
This amounted to more than 500 pounds of explosives and was enough to fill up the front area of his truck bed. Once he loaded up the stolen explosives, Nesius left the area and met the female back in Red Lodge. Nesius spent that night in a hotel/motel in Red Lodge. Nesius left his truck, loaded with the stolen explosives, backed up against a wall at a local business so that the truck topper would not open. Nesius parked the truck in this manner because he did not want the truck with the stolen explosives near him and because his truck topper did not lock. Nesius also covered the boxes of explosives with a tarp to conceal them. The following morning Nesius transported the stolen explosives from Red Lodge to his hometown of Wheatland, Wyoming. Sometime thereafter, Nesius attempted, on at least one occasion, to sell the stolen explosives.
On or about June 7, 2013, evidence and information led ATF agents to visit Nesius' home in Wheatland, Wyoming where they made contact with Nesius' mother in the late afternoon/evening hours. Nesius was not home at the time. Nesius' mother consented to let the ATF agents search her home and several other buildings on the property. No explosives or evidence of criminal activity was located. The next morning, however, law enforcement received information that a concerned citizen had discovered boxes of explosives abandoned approximately a quarter mile east of Wheatland reservoir. The explosives were approximately 15 feet off the roadway stacked in boxes. The responding sheriff deputies observed that the explosives had USFS stickers on some of the cardboard boxes and had been recently discarded there because the boxes had not been damaged by the weather. An examination of the serial numbers on the recovered explosives determined that these were in fact the same stolen explosives taken from the USFS in Red Lodge, Montana. The location where the explosives were recovered was approximately 35 miles south and west of Nesius' Wheatland, Wyoming residence. After ATF agents visited Nesius' home, his brother called him to tell him about the ATF agent's visit. The defendant then told his brother that there were stolen explosives concealed on their family property in a travel trailer of Highway 34. The brother agreed to drive to the location of the stolen explosives and to load them into his truck to dispose of them. The brother then moved the explosives down Highway 34 and unloaded them on the side of the road in the middle of the night.
This volume of explosives in the wrong hands is an obvious threat to public safety," said Michael Cotter, U.S. Attorney for the District of Montana. "Our office is pleased to have played a role in holding Nesius accountable for his dangerous and intentional decision to steal over 500 pounds of explosives."
We will vigorously pursue those responsible for such acts, dedicating any and all investigative resources needed in order to bring these matters to a successful conclusion," said Ken Bray, ATF's Resident Agent in Charge in Montana. "All the stolen explosives in this case have been recovered. The public can rest assured that this matter has been resolved."
The case was investigated by the Bureau of Alcohol, Tobacco and Firearms.
Man Sentenced for Clean Air Act Violation Related to the Kensington Towers ProjectRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Evan Harnden, 45, from North Tonawanda, N.Y., who was convicted of a misdemeanor charge of being an accessory after the fact to a false statement under the Clean Air Act, was sentenced to one year probation by District Court Judge Richard J. Arcara.
Assistant U. S. Attorney Aaron J. Mango, who is handling the case, stated that the defendant was employed by JMD Environmental, Inc. (JMD) as an air sampling technician and a project monitor, and was certified by the New York State Department of Health to conduct asbestos project monitor and air sampling duties. From June 9, 2009 to January 11, 2010, co-defendants Johnson Contracting of WNY, Inc. (Johnson Contracting), Ernest Johnson, and Rai Johnson, conducted asbestos abatement activities at six buildings at the Kensington Towers Apartment Complex in Buffalo
As part of the plea, the defendant admitted that during the abatement for building A-1, Ernest Johnson, Rai Johnson, and workers employed by them violated the Clean Air Act asbestos work practice standards by: (i) failing to adequately wet Regulated Asbestos during stripping and removal operations; (ii) failing to ensure that Regulated Asbestos remained wetted until placed in leak-tight containers; (iii) causing Regulated Asbestos to be dropped down holes cut through the floors in Building A-1; and (iv) failing timely to dispose of all Regulated Asbestos stripped and removed from building A-1. During the abatement process, the defendant aided and abetted the above-described violations by conducting visual inspections and final clearance air sampling that indicated no violations of the asbestos work practice standards had occurred.
This is the third defendant to be sentenced as part of the Kensington Towers asbestos abatement project. In addition to Ernest and Rai Johnson, other defendants who have been convicted include JMD project monitors Brian Scott and Chris Coseglia and current and former public officials responsible for certifying the project’s compliance with applicable laws and regulations, including Donald Grzebielucha, William Manuszewski, and Theodore Lehmann. The remaining defendants will be sentenced before U.S. District Court Judge Richard J. Arcara.
"The health dangers associated with asbestos are well known," said Vernesa Jones-Allen, Special Agent in Charge of EPA's criminal enforcement program in New York. "The defendant admitted that he falsified inspection reports, which indicated to authorities that the demolition work was performed according to regulations and that asbestos contaminated materials had been removed safely. Today's sentencing should serve notice that EPA and its partner agencies remain committed to tough enforcement of our nation's environmental laws."
The conviction was the culmination of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency - Criminal Investigation Division, under the direction of Special Agent-In-Charge, William V. Lometti; Special Agents of the Federal Bureau of Investigation; Special Agents of the U.S. Department of Housing and Urban Development - Office of Inspector General, under the direction of Special Agent-In-Charge Rene Febles; and Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain Frank Lauricella. Additional assistance was provided by the New York State Department of Labor, Asbestos Control Bureau.Man Sentenced to 10 Years in Prison on Child Pornography ChargesRead the Press Release
CHARLOTTE, N.C. – On Wednesday, August 13, 2014, Chief U.S. District Judge Frank D. Whitney sentenced Charles Kevin Bridges to 121 months in prison on federal child pornography charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Bridges was ordered to register as a sex offender and to serve the rest of his life under court supervision after he is released from prison. Judge Whitney also ordered Bridges to pay $3,000 as restitution to a child pornography victim.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division and Chief Stacy Conley of the Gastonia Police Department.
In March 2014, Bridges, 56, of Kings Mountain, N.C. pleaded guilty to one count of receiving child pornography and one count of possession of child pornography. According to filed documents and statements made in court, in January 2013, a law enforcement officer conducting an investigation downloaded images and videos containing child pornography from Bridges’ computer, using a peer-to-peer network. Law enforcement executed a search warrant at Bridges’ residence and seized a laptop computer and a USB drive. Court records indicate that a forensic examination revealed that Bridges possessed an extensive collection of images and videos depicting children as young as toddlers engaging in sexual acts with adults.
Bridges has been in federal custody since his bond was revoked in March 2013. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was handled by the FBI and Gastonia Police department with assistance from the Cleveland County Sheriff’s Office. Assistant U.S. Attorneys Cortney S. Randall and David A. Thorneloe of the U.S. Attorney’s Office handled the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Man Sentenced to 10 Years in Prison on Child Pornography ChargesRead the Press Release
CHARLOTTE, N.C. – On Wednesday, August 13, 2014, Chief U.S. District Judge Frank D. Whitney sentenced Charles Kevin Bridges to 121 months in prison on federal child pornography charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Bridges was ordered to register as a sex offender and to serve the rest of his life under court supervision after he is released from prison. Judge Whitney also ordered Bridges to pay $3,000 as restitution to a child pornography victim.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division and Chief Stacy Conley of the Gastonia Police Department.
In March 2014, Bridges, 56, of Kings Mountain, N.C. pleaded guilty to one count of receiving child pornography and one count of possession of child pornography. According to filed documents and statements made in court, in January 2013, a law enforcement officer conducting an investigation downloaded images and videos containing child pornography from Bridges’ computer, using a peer-to-peer network. Law enforcement executed a search warrant at Bridges’ residence and seized a laptop computer and a USB drive. Court records indicate that a forensic examination revealed that Bridges possessed an extensive collection of images and videos depicting children as young as toddlers engaging in sexual acts with adults.
Bridges has been in federal custody since his bond was revoked in March 2013. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was handled by the FBI and Gastonia Police department with assistance from the Cleveland County Sheriff’s Office. Assistant U.S. Attorneys Cortney S. Randall and David A. Thorneloe of the U.S. Attorney’s Office handled the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Lawrence County Man Pleads Guilty to Drug Law ViolationRead the Press Release
PITTSBURGH - A resident of Wampum, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotic laws, United States Attorney David J. Hickton announced today.
Jordan Viccari, 24, pleaded guilty to one count before Senior United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that from in and around May 2013, and continuing thereafter to in and around October 2013, Viccari conspired with others to distribute and possess with the intent to distribute five kilograms or more of cocaine.
Judge McVerry scheduled sentencing for Nov. 21, 2014, at 1:30 p.m. The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jonathan B. Ortiz is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Office of the Pennsylvania Attorney General, Bureau of Narcotics Investigations conducted the investigation that led to the prosecution of Jordan Viccari.
Last Place on Earth Owner Sentenced to 17.5 Years in Federal Prison for Conspiring to DistributeRead the Press Release
SYNTHETIC DRUGS
U.S. Attorney Andrew M. Luger today announced the sentencing of JAMES CARLSON, 57, the former owner of Last Place on Earth (LPOE), and LAVA HAUGEN, 34, who were convicted on October 7, 2013, after a jury trial in U.S. District Court in Minneapolis for their roles in a conspiracy to distribute synthetic drugs. CARLSON was sentenced by United States
District Judge David Doty to 17.5 years in federal prison. HAUGEN was sentenced to 5 years in prison.Assistant U.S. Attorney Surya Saxena said: “The Court’s sentence, and the jury verdicts in this case, should confirm once and for all that synthetic drugs are illegal, and that they always have been illegal under both the Food Drug and Cosmetic Act and the Controlled Substances
Analogue Enforcement Act. These drugs are just as dangerous as traditional illicit drugs like methamphetamine, cocaine, and heroin, and their effects are often more unpredictable.”“Synthetic drugs, like those sold at Last Place on Earth, create health and safety dangers for individuals, their families, and their communities,” said U.S. Attorney Andy Luger. “Residents, medical personnel, and law enforcement officials in Duluth know this all too well. Moreover, these drugs are illegal, and those who sell them should expect to be prosecuted.”
Kelly R. Jackson, Internal Revenue Service Criminal Investigation Division Special Agent in Charge of the St. Paul Field Office said: “Today’s sentencing demonstrates how federal law enforcement will band together to help put an end to the criminal behavior of those who prey on others for their personal financial gain. IRS Criminal investigators will continue to use their financial expertise to identify and trace laundered funds in these types of fraud schemes.”
John J. Redmond, U.S. Food and Drug Administration Office of Criminal Investigations, Special Agent in Charge of the Chicago Field Office, which includes Minnesota, said: “The defendants in this case demonstrated blatant disregard for the health and welfare of the general public by illegally distributing dangerous misbranded drugs. The sentence speaks for itself and serves as a deterrent to others who choose to put the public’s health at risk. We commend the
U.S. Attorney's Office and our law enforcement partners for their dedicated collaborative efforts in pursuing this matter."Jack Riley, U.S. Drug Enforcement Administration Special Agent in Charge of the Chicago Field
Division, which includes Minnesota, said: “Today’s sentence should send a message to those involved in the distribution of synthetic drugs. And I hope they hear that message loud and clear; those who sell these dangerous drugs in our communities and hope to avoid detection by mislabeling and misrepresenting their intended use will be investigated and prosecuted to the fullest extent of the law. I hope today’s sentence also sends a message to the community that these types of drugs pose a serious public health threat to the state and region,” he added.As proven at trial, CARLSON and HAUGEN conspired to obtain and sell synthetic drugs misbranded as incense, potpourri, bath salts, exotic skin treatments, glass cleaner, watch cleaner. The items, marketed under names like “No Name,” “Smoking Dragon,” “Role-X Watch Cleaner,” and
“Binger,” among others, were synthetic drugs as defined by federal law, and subject to regulation pursuant to the U.S. Food and Drug Administration (FDA). The defendants intended to and did sell these synthetic drugs for human consumption for the purpose of mimicking other illegal narcotics and hallucinogens.As proven at trial, CARLSON and HAUGEN intentionally misled government authorities with the false labels, which, in addition to suggesting that the products were not drugs, failed to describe package contents accurately, failed to include health warnings regarding use, and failed to identify the manufacturer or distributor of the items. Between March 16, 2010, and September
29, 2012, the defendants paid nearly $2 million for at least 510 packages of synthetic drugs from suppliers in California, Arizona, Wisconsin, Florida, and Pennsylvania.From at least 2010 through 2013, CARLSON made millions of dollars by distributing synthetic drugs through LPOE. He used LPOE employees as guinea pigs for testing untested and unregulated drugs so that he could confirm that those drugs would “work” on his customers. Some LPOE customers became addicted to the synthetic drugs sold by CARLSON and suffered dangerous side effects, including tachycardia, paranoia, agitation, seizures, and black outs.
As proven at trial, HAUGEN regularly ordered synthetic drugs from suppliers. She acted as a general manager of LPOE, and was responsible for weighing and repackaging bulk quantities of synthetics.
HAUGEN also managed inventory, verified orders of drugs delivered to LPOE, and sold synthetic drugs both by mail, and in person to LPOE customers.According to documents filed in court, Duluth-area hospital emergency rooms treated a significant number of synthetic drug users while LPOE was in operation. By 2012, the emergency room at St. Luke’s Hospital was receiving nearly three synthetic-drug-abuse cases each day. Of those, approximately 10 percent exhibited serious symptoms requiring the use of physical restraints and chemical sedatives or admission to the Intensive Care Unit or mental health ward.
Each patient willing to disclose to hospital staff where they obtained the synthetic drugs they took, invariably reported obtaining the drugs from LPOE. After the City of Duluth successfully enjoined LPOE from distributing synthetic drugs, St. Luke’s Hospital reported a 95 percent decline in the number of synthetic drugs patients requiring emergency medical attention.
This case was prosecuted by Assistant U.S. Attorneys Surya Saxena and Nate Petterson.U.S. Attorney Luger thanked the Duluth Police Department, the U.S. Food and Drug Administration, the U.S. Drug Enforcement Administration, and the Internal Revenue Service- Criminal Investigation
Division, the United States Marshals Service, the Duluth City Attorney’s Office, the St. Louis
County Attorney’s Office, and the Lake Superior Drug and Violent Crime Task Force.Defendant Information: JAMES CARLSON, D.O.B. 4/30/1957
Superior, WI
Convicted: • Conspiracy to Commit Offenses against the United States, 1 count
• Causing Misbranded Drugs to be Introduced into Interstate Commerce, 9 counts
• Delivery of Misbranded Drugs Received in Interstate Commerce, 6 counts
• Doing Acts Resulting in Drugs Being Misbranded While Held for Sale, 1 count
• Distribution of a Controlled Substance, 1 count
• Conspiracy to Distribute Controlled Substance Analogues, 1 count
• Distribution of Controlled Substance Analogues, 8 counts
• Monetary Transactions in Property Derived from Specified Unlawful Activity, 24 counts
Sentenced: • 17.5 years in Federal Prison
• 3 years of supervised releaseLAVA HAUGEN, D.O.B. 7/16/1980
Superior, WI
Convicted: • Conspiracy to Commit Offenses against the United States, 1 count
• Delivery of Misbranded Drugs Received in Interstate Commerce, 1 count
• Doing Acts Resulting in Drugs Being Misbranded While Held for Sale, 1 count
• Conspiracy to Distribute Controlled Substance Analogues, 1 count
Sentenced: • 5 years in Federal Prison
• 3 years of supervised releaseLancaster Resident Charged with Illegal ReentryRead the Press Release
Victor Hugo Armenta-Calzada, a/k/a “Raul Armenta,” 34, of Lancaster, PA, was charged today by indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about July 25, 2014, Armenta-Calzada, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about May 27, 2011.
If convicted the defendant faces a maximum possible sentence of 10 years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Laguna Pueblo Man Pleads Guilty to Assaulting Te-Moak Tribe WomanRead the Press Release
ALBUQUERQUE – Kyle S. Swimmer, 21, an enrolled member and resident of Laguna Pueblo, pleaded guilty this morning to a misdemeanor assault charge under a plea agreement with the U.S. Attorney’s Office.
Swimmer was arrested on May 27, 2014, on a criminal complaint charging him with assault by strangulation. On June 11, 2014, Swimmer was indicted and charged with assaulting his intimate partner by strangulation or suffocating. According to court filings, Swimmer assaulted his girlfriend, an enrolled member of the Te-Moak Tribe of Western Shoshone Indians, on May 14, 2014, in Laguna, N.M., in Cibola County, N.M., by pushing her against a wall and choking her.
During today’s proceedings, Swimmer pled guilty to an information charging him with assault by striking, beating or wounding the victim on May 14, 2014. Swimmer admitted to pushing the victim against the wall, placing his hands on her in an unlawful manner and throwing her down on the couch.
At sentencing, Swimmer faces a maximum penalty of 12 months in prison. His sentencing hearing has not yet been scheduled.
This case was investigated by the Pueblo of Laguna Tribal Police Department with assistance from the Pueblo of Laguna Fire and Rescue Department and is being prosecuted by Special Assistant U.S. Attorney David Adams. It was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Justice Department Settles Housing-Discrimination Case with Cleveland CompaniesRead the Press Release
The Justice Department announced today that the manager and owner of the Linden House Apartments in Cleveland have agreed to pay $100,000 to resolve allegations that they refused to rent to individuals because the individuals had children. The settlement must still be approved by U.S. District Judge Solomon Oliver Jr.
The settlement resolves a lawsuit filed by the Justice Department on September 30, 2013, against the Zaremba Management Company, the Linden Apartment Company and a property manager who worked at the Linden House Apartments. The United States alleged that the defendants violated the Fair Housing Act by maintaining a policy of refusing to rent units at Linden House to families with children. It also alleged that the Linden House Apartments had a policy of evicting tenants or asking tenants to relocate if they had children while living at Linden House. While the Fair Housing Act does allow housing that is reserved for older persons to limit residency to adults under certain circumstances, Linden House did not meet the requirements for this exemption.
The settlement requires the defendants to pay $90,000 to victims of their discriminatory actions, and to pay $10,000 in civil penalties to the United States. The settlement also requires the defendants to remove any restrictions on occupancy by families with children at the Linden House Apartments and to take certain steps such as training employees and reporting to the Department of Justice to make sure that such discriminatory policies are not implemented in the future.
“Finding decent, safe and affordable housing is critical for working families,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “Such families should not be turned away from housing merely because they have children.”
“Families deserve the legal right to live where they can, and the Justice Department will continue to protect them from housing discrimination,” said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio.
Fighting illegal discrimination in housing is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination or have information related to this lawsuit can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact the Department of Housing and Urban Development at 1-800-669-9777.
Justice Department Obtains $100,000 Settlement in Housing Discrimination Lawsuit Against Cleveland LandlordRead the Press Release
The Justice Department announced today that the manager and owner of the Linden House Apartments in Cleveland have agreed to pay $100,000 to resolve allegations that they refused to rent to individuals because the individuals had children . The settlement must still be approved by U.S. District Judge Solomon Oliver Jr.
The settlement resolves a lawsuit filed by the Justice Department on September 30, 2013, against the Zaremba Management Company, the Linden Apartment Company and a property manager who worked at the Linden House Apartments. The United States alleged that the defendants violated the Fair Housing Act by maintaining a policy of refusing to rent units at Linden House to families with children. It also alleged that the Linden House Apartments had a policy of evicting tenants or asking tenants to relocate if they had children while living at Linden House. While the Fair Housing Act does allow housing that is reserved for older persons to limit residency to adults under certain circumstances, Linden House did not meet the requirements for this exemption.
The settlement requires the defendants to pay $90,000 to victims of their discriminatory actions, and to pay $10,000 in civil penalties to the United States. The settlement also requires the defendants to remove any restrictions on occupancy by families with children at the Linden House Apartments and to take certain steps such as training employees and reporting to the Department of Justice to make sure that such discriminatory policies are not implemented in the future.
“Finding decent, safe and affordable housing is critical for working families,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “Such families should not be turned away from housing merely because they have children.”
“Families deserve the legal right to live where they can, and the Justice Department will continue to protect them from housing discrimination,” said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio.
Fighting illegal discrimination in housing is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt . Individuals who believe that they have been victims of housing discrimination or have information related to this lawsuit can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact the Department of Housing and Urban Development at 1-800-669-9777.
Related Materials:
Zaremba Consent Order
Joplin Woman Pleads Guilty to Disaster Fraud Related to Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Joplin, Mo., woman pleaded guilty in federal court today to aggravated identity theft and to fraudulently receiving federal disaster benefits following the tornado that struck the city of Joplin on May 22, 2011, killing 158 people and causing more than $2.9 billion in damage.
Brittany Aulden Barnes, 23, of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of disaster fraud and one count of identity theft.
Disaster Fraud
By pleading guilty today, Barnes admitted that she fraudulently received disaster benefits by claiming that her residence in Joplin had been damaged by the tornado. When Barnes met with a FEMA-contracted inspector to discuss her claim on June 6, 2011, she also claimed the loss of a number of furniture items and appliances. Barnes was awarded $6,708 in disaster relief. In addition, Barnes resided at a FEMA-provided mobile home for more than a year, from September 2011 to December 2012, at a total cost to FEMA of $12,066.
However, Barnes admitted today that the Joplin apartment was not her residence at the time of the tornado – on that date the apartment stood vacant. Barnes had rented the apartment prior to the Joplin tornado, and had occupied it along with her boyfriend, Russell Lamar Green. However, Barnes and Green had moved out before the tornado struck. In a separate but related case, Green pleaded guilty on Aug. 7, 2014, to making false statements to FEMA in a failed effort to also receive disaster benefits.
Under the terms of today’s plea agreement, Barnes acknowledged that $18,774 in restitution is due to FEMA.
Aggravated Identity Theft
Barnes also admitted that, while working at an Applebee’s restaurant in Joplin in May 2013, she stole a co-worker’s wallet, which contained the victim’s Missouri driver’s license, Social Security card, debit card and three credit cards.
Barnes used the stolen identity documents to impersonate the victim on several occasions. For example, she used a counterfeit personal check (drawn on the bank account of another victim) to purchase a $269 Sony Playstation game console at Best Buy. She cashed three counterfeit $598 payroll checks (drawn on the bank accounts of two additional victims) at two Wal-Mart stores.
Under the terms of today’s plea agreement, Barnes acknowledged that $2,064 in restitution is due to those victims.
Under federal statutes, Barnes is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution, for disaster fraud. Barnes is also subject to a mandatory consecutive sentence of two years in federal prison without parole, plus a fine up to $250,000 and an order of restitution, for aggravated identity theft. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the U.S. Department of Homeland Security – Office of Inspector General, the FBI and the Joplin, Mo., Police Department.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.Investment Advisor and Attorney Sentenced to 10 Years in Prison After Pleading Guilty to Stealing More ThanRead the Press Release
$4 MILLION
United States Attorney Andrew M. Luger today announced the sentence of MARK HOLT, 45, to ten years in federal prison for stealing more than $4 million from his investment advisory clients.
The defendant, a securities broker, investment advisor, and now disbarred attorney, operated a fraud scheme for at least eight years, during which time he used the criminal proceeds to fund his own lavish lifestyle. HOLT pleaded guilty on April 1, 2014, in United States District Court in St.
Paul, MN, to wire fraud.“Far too often, investment advisors are caught defrauding their clients,” said U.S. Attorney Luger.
“This defendant was an attorney during the time that he was stealing from his clients. He not only engaged in criminal activity by stealing from his clients, he eroded public trust in our profession. My Office will continue to prosecute aggressively those who abuse professional positions of trust.”According to his guilty plea, HOLT owned and operated the Harbor Investment Planning Group, LLC, later known as the Harbor Group, LLC (Harbor Group) from 2002 through January 2014. In 2005, HOLT opened bank accounts in the name of the Harbor Group, over which he had exclusive control. Between
September 2005 and November 2013, HOLT persuaded investors to place more than $4 million into his trust by telling them that he was investing their money in legitimate long-term investments, such as bonds and mutual funds with JP Morgan Chase, Morgan Stanley, Berkshire Hathaway, and others. By convincing clients to make long-term investments, HOLT expected them not to draw on those funds for many years. Instead, HOLT diverted the funds into Harbor Group checking accounts.HOLT continued to defraud his clients using an array of schemes to make their investments seem legitimate, including making monthly annuity or interest payments to clients; providing fraudulent Morningstar “Portfolio Fact Sheet, Client Summary” printouts falsely reflecting that the clients’ funds had been placed in legitimate investment products; and creating online accounts for clients with Blueleaf, a web-based portal for viewing account information, including account balances and performance information, and causing weekly e-mail updates to be sent to clients via the Blueleaf system showing fraudulent account balances.
According to the documents filed in court, HOLT converted the investors’ money to his own use. He spent most of the money to fund his lavish lifestyle, including purchasing a membership at the
White Bear Yacht Club, luxury cars from Maplewood Imports and Sears Imports, and stays at the Ritz
Carlton. He also used some of the stolen funds to make Ponzi payments to the victims.This case was prosecuted by Assistant U.S. Attorney Kimberly Svendsen.
U.S. Attorney Luger thanked the Federal Bureau of Investigation for its assistance in the investigation.
Defendant Information:
MARK HOLT, D.O.B. 9/15/1969
Vadnais Heights, MNConvicted: • Wire Fraud, 1 count
Sentenced: • 10 years in Federal Prison
• 3 years supervised release
• Restitution of $2,940,982.75Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Lynch in Missoula on August 14, and entering pleas of Not Guilty were:
STANLEY FLEMING, a 56-year-old resident of Ronan, appeared on charges of health care fraud. If convicted of the charge contained in the indictment, FLEMING faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-37
KYLLIAN N. LOTT, a 42-year-old resident of Libby, appeared on receipt and possession of child pornography. If convicted of the most serious charges contained in the indictment, LOTT faces 20 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by Homeland Security Investigations. PACER Case Reference: 14-38
JENNIFER KAY TRUMBLE, a 28-year-old resident of Kalispell, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, TRUMBLE faces life in prison, $10,000,000 in fines and at least 5 years supervised release. The case was investigated by Homeland Security Investigations. PACER Case Reference: 14-35
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Houston Man Sentenced to More Than 14 Years in Federal Drug Conspiracy CaseRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that
Apolinar Ortiz Islas, a/k/a “Polo”, 44, formerly of Houston, Texas was sentenced on
Wednesday, August 13, in U.S. District Court in Bangor to 14 years and 2 months imprisonment after being found guilty of conspiracy to possess with the intent to distribute and to distribute five kilograms or more of cocaine, following a three day trial in October 2013.Evidence at trial established that Ortiz-Islas was the Houston based source of cocaine for a group of Canadian drug traffickers from New Brunswick, Canada. The Canadian traffickers would smuggle hundreds of thousands of dollars in cash into Northern Maine and have it transported to Houston where it was used to pay Ortiz-Islas for kilograms of cocaine. The cocaine would then be transported back to Maine and smuggled into Canada. Testimony at trial indicated that Ortiz-Islas was obtaining the cocaine from a source in Mexico. Evidence further established that the conspiracy operated in this manner for approximately two years. Ortiz-Islas was arrested in Houston in September 2012 as he attempted to deliver ten kilograms of cocaine to an undercover law enforcement officer posing as a courier for the Canadian drug traffickers.
The case was investigated by the Department of Homeland Security – Homeland Security
Investigations Office in Houlton, Maine, with assistance provided by the U.S. Drug Enforcement
Administration in Houston, Texas, and the Royal Canadian Mounted Police.Houston Man Gets 40 Years for Sex Trafficking of ChildrenRead the Press Release
HOUSTON – Tevon Harris aka “Da Kidd” and “King Kidd,” 22, of Houston, will be spending the next 40 years in prison as a result of his convictions on two counts of trafficking children under 18 for commercial sex, announced United States Attorney Kenneth Magidson. Harris pleaded guilty April 9, 2014.
Today, U.S. District Judge David Hittner, who accepted the guilty plea, sentenced Harris to a total of 480 months in federal prison. He was further ordered to spend the rest of his life on supervised release and must register as a sex offender.
According to the plea agreement, from January through July 2012, Harris forced young girls, who he knew were minors, into prostitution by using force and intimidation. Harris stipulated that in order to gain the trust of victims, whom he met on social networking sites, he would tell them he was going to help them become models. Instead, he picked them up, took them to motel rooms and then forced them to have sex with him. Harris would also deprive them of their cell phones, thereby cutting off their communication with the outside world.
Harris used violence to keep the minors cooperating with him. In one instance, he deprived a victim of food for more than four days because he did not believe she was servicing his clients well enough. He also supplied her with marijuana and alcohol. Another victim was beaten with a towel rack torn from a motel room wall when Harris found her using the phone to call her mother for help.
The victims were photographed and their images were posted in online ads for prostitution. Harris kept all monies they earned.
Harris will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
An investigation by the Houston FBI Innocence Lost Task Force, which includes such agencies as the Houston Police Department, developed this case using statements from victims as well as on line advertisements for the victims’ services and hotel records from several hotels.
This case, prosecuted by Assistant United States Attorney Sherri L. Zack, 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."
Granite Bay Man Indicted on Charges of Wire Fraud and Money LaunderingRead the Press Release
SACRAMENTO, Calif. - A federal grand jury indicted Brent Lee Newbold, 57, of Granite Bay, California, charging him wire fraud and money laundering, United States Attorney Benjamin B. Wagner announced today.
According to court documents, the defendant engaged in a fraud scheme centered on a business called Holy Cow. Holy Cow produced a “green” cleaning product, which it marketed to stores such as WalMart, ACE Hardware, and Bed, Bath & Beyond. Newbold was the former Chief Executive Officer of Holy Cow.
The indictment alleges that to raise money from investors, Newbold made a variety of misrepresentations about the financial health of the company, including misrepresentations about the company’s debt levels and how invested funds would be used. Contrary to his representations, Newbold regularly used investor funds to pay himself, his wife, his mortgage, and previous investors. Ultimately, Newbold enticed one corporate investor, Spence Enterprises, and at least 14 other individual investors to give him money in connection with Holy Cow. In December 2007, based on Newbold’s misrepresentations and false promises, Spence Enterprises bought Holy Cow. Spence Enterprises believed it was buying a financially stable company when, in fact, it was not.
The indictment further alleges that after Spence Enterprises began funding Holy Cow to promote its growth, Newbold, without authorization, diverted approximately $1,000,000 of money from Holy Cow corporate accounts to himself, his wife, his mortgage company, and his previous lenders and investors. After Newbold was confronted by Spence Enterprises about improperly diverting company money, Newbold opened a secret account at American River Bank. The American River Bank Account was held in the name of Holy Cow, Inc., but Newbold was the sole signatory on the account, and the account statements were sent to his personal residence. Newbold used the American River Bank Account to receive funds from undisclosed individual investors in Holy Cow.
Finally, the indictment alleges that between July 2008 and January 2010, Newbold solicited approximately 14 individual investors. Newbold represented to these investors that he was authorized to act on behalf of Holy Cow; he owned Holy Cow; he owned the majority of Holy Cow stock; Holy Cow was financially sound, stable and profitable; he could bind and obligate Holy Cow; and/or that investor money would be used for business purposes, such as working capital, fulfilling an order, or buying new product. Contrary to his representations, Holy Cow was not financially stable. In fact, Holy Cow had high debt levels as a result of the defendant’s investment fraud scheme and was not profitable. Contrary to his representations, Newbold had no authority to bind or obligate Holy Cow, he did not own the company, and Newbold did not use all investor money for business purposes. In some cases, Newbold provided individual investors with false Holy Cow stock certificates, false Holy Cow purchase order reports, and/or corporate promissory notes that falsely purported to bind Holy Cow and identified Newbold as an “Authorized Agent” of Holy Cow. Contrary to his representations, Newbold regularly used investor money for personal purposes, including paying off prior lenders, paying down his mortgage, and paying himself and his wife. By December 2009, Spence Enterprises put Holy Cow into bankruptcy as a result of the unauthorized and undisclosed debt Newbold was taking on in connection with Holy Cow. The gross loss amount in this case exceeds three million dollars.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Michael M. Beckwith is prosecuting the case.
With respect to the wire fraud, if convicted, the defendant faces a maximum sentence of 20 years in prison, a $250,000 fine, and a 3-year term of supervised release for each count of conviction. With respect to the money laundering, the defendant faces a maximum sentence of 10 years in prison, a $250,000 fine, and a 3-year term of supervised release for each count of conviction. The actual sentence, if convicted, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges are only allegations and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Government Settles False Claims Act Allegations Against Optim HealthcareRead the Press Release
SAVANNAH, GA: Optim Healthcare, based in Savannah, and others have agreed to pay the United States a total of $4 million to settle allegations that they submitted false claims to the Government.
The Government’s investigation was initiated when it received numerous complaints that patients, who lived in the Savannah area, had to undergo major surgical procedures at Optim Healthcare’s rural hospital located in Tattnall County, approximately 90 miles away. In December 2008, Optim Healthcare purchased then Tattnall Memorial Hospital and later renamed it Optim Medical Center – Tattnall. The Government alleges that the primary motivation in having these surgeries performed at Optim Medical Center – Tattnall was financial, and not based on patient need or desire.
The settlement announced today resolves allegations that between 2008 and 2012, Optim Healthcare, through its physician-owned hospital in Tattnall County and through its ambulatory surgical center in Savannah, submitted claims for surgical and other medical procedures to Medicare that were: (1) improperly inflated, (2) misidentified in order to receive a higher rate of reimbursement, and (3) in violation of the federal prohibition against physician self-referrals, commonly known as the Stark Law. The Stark Law is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is based solely on the best interests of the patient.
United States Attorney Edward J. Tarver said, “Healthcare is not about making as much money as possible. Programs like Medicare operate on the honesty and decency of its providers, and this office will actively pursue those who misuse the federal healthcare programs or their beneficiaries for financial gain.”
“Today’s settlement demonstrates that the OIG will aggressively investigate all allegations made against trusted healthcare providers who misrepresent services and violate the Physician Self-Referral Statute,” said Derrick L. Jackson, Special Agent in Charge of the United States Department of Health and Human Services, Office of Inspector General, Atlanta Regional Office. “This kind of behavior adversely affects both patient care and healthcare costs, and will not be tolerated.”
The settlement resolves allegations that were originally part of a federal lawsuit filed under the whistleblower provisions of the False Claims Act which allow private citizens with knowledge of false claims to file suit on behalf of the Government and to share in any recovery.
The case was investigated by Special Agent Mark Creamer, Department of Health and Human Services, Office of Inspector General. The United States was represented by Assistant United States Attorney Edgar Bueno. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former Tufts Health Plan Employee Convicted of Disclosing Personal Patient InformationRead the Press Release
BOSTON – A former employee of Tufts Health Plan pleaded guilty today to stealing personal identifying information belonging to hundreds of customers. The stolen data included names, dates of birth, and Social Security numbers, primarily of customers over the age of 65.
Emeline Lubin, 27, pleaded guilty to the unlawful disclosure of Social Security numbers. U.S. District Judge George A. O’Toole, Jr., scheduled sentencing for Nov. 13, 2014.
In 2010, Lubin began working at Tufts Health Plan in Watertown. During her employment, Lubin gave lists of customers’ personal identification information to a Florida man who was involved with her brother in a scheme to steal Social Security benefits and to collect fraudulent income tax refunds by using stolen identities to file false income tax returns. At today’s plea hearing, the prosecutor stated that Lubin stole and disclosed the personal data of over 8,700 customers. Earlier this year, Sniders Jean-Jacques and Melvin Lubin pleaded guilty to the theft of public money in U.S. District Court in Worcester.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Timothy Landry of Ortiz’s Major Crimes Unit.
Members of the public who have questions, concerns or information regarding this case should email [email protected]Former Correctional Officer and Spouse Plead Guilty to Bribery and ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – Joel Gonzalez, a former U.S. Bureau of Prisons correctional officer, and Lisa Gonzalez, his wife, have admitted to accepting bribes from the family of an inmate in exchange for introducing contraband into the Federal Correctional Institution (FCI) in Three Rivers, announced U.S. Attorney Kenneth Magidson.
Joel Gonzalez admitted that from December 2012 through April 2014, he made arrangements to smuggle tobacco and other contraband into the FCI for an inmate in exchange for cash bribes. His wife assisted him in arranging times and locations for receiving the contraband and bribe payments. She also traveled with him from their residence in Beeville to Laredo in order to accept the items. Joel Gonzalez would then smuggle the items into the FCI on his body.
The investigation further revealed Lisa Gonzalez was employed by the Texas Department of Criminal Justice during the orchestration of this scheme.
Sentencing has been set for Nov. 19, 2014. They were permitted to remain on bond pending that hearing.
This case was investigated by the U.S. Department of Justice - Office of the Inspector General and the FBI with assistance from Customs and Border Protection, Beeville Police Department and the Texas Rangers. Assistant U.S. Attorney Mark Patterson is prosecuting.