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Monday 23 June 2014
Bakersfield Defense Contractor Pleads Guilty to Fraud ChargesRead the Press Release
FRESNO, Calif. —Alejandro Villarreal, 32, of Bakersfield, pleaded guilty today to two counts of wire fraud for a scheme to defraud the U.S. Department of Defense, United States Attorney Benjamin B. Wagner announced.
According to court documents, Villarreal was the president and manager of Oliver Supplies. From August 2009 until September 2011, Villarreal executed a scheme to defraud the U.S. Department of Defense by substituting “similar” goods that were inferior or were not manufactured by government approved suppliers. He did this in approximately 16 contracts awarded to Oliver Supplies. Villarreal admitted that he billed approximately $251,214 on these contracts, of which approximately $224,496 was actually paid.
This case is the product of an investigation by the Defense Criminal Investigative Service. Assistant United States Attorney Mark J. McKeon is prosecuting the case.
Villarreal is scheduled to be sentenced on September 15, 2014. He faces a maximum statutory penalty of 20 years in prison on each count and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Attorney General Holder Vows Justice Department Will Continue to Look at Banks That Help Payment Processors Carry out Consumer Scams, Says More Cases to Be Resolved SoonRead the Press Release
Attorney General Eric Holder on Monday said that the Justice Department will continue to investigate financial institutions that knowingly facilitate consumer scams, or that willfully look the other way in processing such fraudulent transactions. He acknowledged that multiple investigations were ongoing in this area, and said he expected several of those cases to be resolved in the coming months.
The department resolved the first such case in April, when Four Oaks of Bank of North Carolina agreed to pay penalties and a forfeiture for knowingly processing fraudulent transactions on behalf of a pyramid scheme. The Attorney General said the department is conducting a series of similar investigations involving allegations of banks enabling third-party payment processors to “siphon billions of dollars from consumers’ bank accounts in exchange for significant fees.”
“In the months ahead, we expect to resolve other investigations involving financial institutions that chose to process transactions even though they knew the transactions were fraudulent, or willfully ignored clear evidence of fraud,” Holder added.
A transcript of the Attorney General’s video message appears below:
“The Justice Department has made it a priority to fight consumer fraud of all kinds, from lottery scams to fake business opportunities to telemarketing fraud targeting Spanish-speaking customers. All too often, scammers and fraudulent vendors attempt to prey on vulnerable consumers by using sophisticated systems to commit crimes. But these fraudsters often can’t act alone. In many cases, they need access to the banking system to pilfer money from their victims. They frequently use third-party payment processers as intermediaries to route payments through financial institutions. And in some cases, these financial institutions – rather than working diligently to protect customers’ hard-earned savings – have knowingly facilitated fraud against their customers or consciously chosen to look the other way.
“We at the Justice Department are determined to stop these illegal and unacceptable practices. While we will not target businesses operating within the bounds of the law, and we have no interest in pursuing or discouraging lawful conduct, our Consumer Protection Branch in the Civil Division is leading a range of investigations into banks that illegally enable businesses to siphon billions of dollars from consumers’ bank accounts in exchange for significant fees.
“In April, for example, the Department of Justice reached a settlement with Four Oaks Bank of North Carolina. This institution permitted a third-party payment processor, which the bank knew was processing transactions reported as fraudulent, to originate $2.4 billion in debit transactions in exchange for over $850,000 in fees paid to the bank. As a result of our investigation, a federal court has entered an order requiring Four Oaks to pay penalties and forfeiture totaling more than a million dollars and to implement reforms that will prevent this kind of rampant fraud in the future.
“In North Carolina and elsewhere, the Justice Department’s efforts are sending a clear message that such activities are irresponsible. And they will not be tolerated. In the months ahead, we expect to resolve other investigations involving financial institutions that chose to process transactions even though they knew the transactions were fraudulent, or willfully ignored clear evidence of fraud.
“The goal of these investigations is quite simple: to protect consumers from scam artists and collaborating institutions – in every circumstance and industry. In the days ahead, the Justice Department will keep moving forward – guided by the facts and the law – to eliminate fraud targeting consumers while mitigating any impact on institutions not under investigation. We must enforce the law against both the fraudsters who prey on consumers and the financial institutions who choose to allow these crimes to occur. When we uncover evidence that financial institutions are knowingly assisting fraudsters, deliberately ignoring evidence of fraud, or intentionally disregarding obligations under federal law – we will not hesitate to act. We will hold them accountable. And we will never waver in our determination to protect honest, hardworking Americans from those who put their financial security in peril.”
The Attorney General’s video message can be viewed here: http://www.justice.gov/agwa.php.
Anderson, S.C. Attorney Sentenced to Five Months in Prison on Obstruction ChargesRead the Press Release
Defendant Pleaded Guilty To Making False Statements To Federal Authorities During Investigation Of Client Indicted On Drug Conspiracy Charges
GREENVILLE, S.C. – Charles Anderson, an attorney in Anderson, S.C. and a former Anderson city council member, was sentenced today by U.S. District Judge Michelle Childs to serve five months in prison on obstruction charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. In addition to the prison term, Judge Childs also sentenced Anderson to three years of supervised release with the condition that the first five months of which Anderson will spend in home confinement with location monitoring. Anderson was also ordered to perform 100 hours of community service or to complete a week-long community service project, as a condition of his supervised release. Anderson, 44, pleaded guilty in January 2014, to one count of making materially false statements to a department or agency of the United States.
Harry S. Sommers, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Greenville District Office, and Brock D. Nicholson, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Georgia and the Carolinas join U.S. Attorney Tompkins in making today’s announcement.
According to information contained in court documents and today’s sentencing hearing, Anderson represented Lonnie Maddox on federal drug charges in South Carolina in connection with a large-scale cocaine conspiracy. Court records indicate that from February 21 to March 15, 2013, and on five different occasions, Anderson lied to federal agents concerning his knowledge of the whereabouts of two of Maddox’s vehicles. Maddox had purchased the vehicles with the illegal proceeds of his drug dealings. According to court records, Anderson knew where Maddox’s Yukon Denali sport utility vehicle was located, but repeatedly denied this fact when questioned by DEA and HSI agents. Court records also show that Anderson lied to law enforcement about his participation in moving the Denali, which law enforcement ultimately retrieved from Anderson’s law partner’s residence. According to today’s sentencing hearing, when law enforcement agents recovered the Denali, they found one kilo of cocaine hidden in a concealed compartment inside the vehicle.
In addition to the Denali, Anderson also initially lied to federal agents about possessing another one of Maddox’s vehicles, a classic Chevrolet Chevelle, court records indicate. And despite Anderson later admitting to law enforcement that he had in fact possessed the Chevelle, Anderson lied about the location from where he had obtained the vehicle.
Anderson, who remains free on bond, will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The case was investigated jointly by the DEA and HSI. The prosecution is being handled for the government by Assistant U.S. Attorney J. George Guise of the U.S. Attorney’s Office for the Western District of North Carolina in Charlotte, upon recusal of the U.S. Attorney’s Office for the District of South Carolina.
Anderson County Woman Sentenced in Drug Trafficking ConspiracyThat Ended in A HomicideRead the Press Release
KANSAS CITY, KAN. – An Anderson County woman was sentenced today to 162 months in federal prison for taking part in a drug trafficking conspiracy that ended in a killing, U.S. Attorney Barry Grissom said.
Tracy Rockers, 24, Greeley, Kan., pleaded guilty to one count of conspiracy to distribute methamphetamine. In her plea, she admitted she was present Dec. 17, 2010, at a residence in Eudora, Kan., when traffickers killed Gregory Price for failing to pay drug debts and disposed of his body by hiding it in a refrigerator.
According to court documents, an investigation began in March 2010 when the Gardner Police Department and the Johnson County Sheriff’s Office began investigating traffickers who were selling methamphetamine in Gardner. In August 2011 the Kansas Bureau of Investigation identified Rockers as one of the traffickers. Working undercover, they made the first of several methamphetamine purchases from Rockers at a location in Eudora, Kan., on Aug. 24, 2011. Over a period of months, investigators identified more than a dozen traffickers.
According to court documents, on Dec. 17, 2010, several of the traffickers confronted Gregory Price at a residence in Eudora, Kan., about $800 they said he owed them. When Price refused to pay, the traffickers decided to take him to a rural location outside Desoto, Kan. They grabbed Price and attempted to pull him out the front door, but he resisted. Then they threw him into a door, causing him to collapse and begin “making gurgling noises,” according to court records. Rockers watched Price while the traffickers installed a camper shell on the back of a pickup they would use to transport Price. At some point, while lying on the floor, Price died. The traffickers put Price’s body inside a refrigerator and took it to the rural location near Desoto. More than a year later – April 19, 2012 – law enforcement found the refrigerator with Price’s body inside.
Co-defendants include:
Michael C. Redifer, 37, who was sentenced to 30 years.
Steven M. Hohn, 34, Gardner, Kan., who was sentenced to 30 years.
Michael C. Quick, 33, Eudora, Kan., who was sentenced to 20 years.
Ronnie D. Morlean, 30, Olathe, Kan., who was sentenced to 216 months.
Kerry Lee Randall, 43, who was sentenced to 180 months.
Keith Arney, 29, Fulton, Mo., who was sentenced to 173 months.
Robert Baitey, III, 39, Desoto, Kan., who was sentenced to 150 months.
Daniel Reynoso, 25, who was sentenced to 135 months.
Gregory L. Renft, 40, who was sentenced to 10 years.
Rebecca L. Zehring, 39, Desoto, Kan., who was sentenced to 105 months.
Jordan R. Noble, 24, Eudora, Kan., who was sentenced to five years.
Dustin Cook, 39, who was sentenced to 52 months.
Danny Marlin, 42, who was sentenced to four years.Grissom commended the Gardner Police Department, the Johnson County Sheriff’s Office, the Kansas Bureau of Investigation, the Drug Enforcement Administration and Assistant U.S. Attorney Terra Morehead for their work on the case.
Albuquerque Man Pleads Guilty to Participating in Crack Cocaine Trafficking ConspiracyRead the Press Release
ALBUQUERQUE – Sam Eylicio, Jr., 37, of Albuquerque, N.M., pleaded guilty this morning to participating in a cocaine base trafficking conspiracy. Under the terms of his plea agreement, Eylicio will be sentenced to 125 months in federal prison followed by four years of supervised release.
Eylicio was one of five men who were indicted in April 2013, on federal narcotics and firearms charges as the result of “Operation Rio Grande Stucco,” a DEA led investigation into an organization that allegedly manufactured and distributed cocaine base, more commonly known as “crack” or “crack cocaine,” in Bernalillo and Santa Fe Counties, N.M.
The five-count indictment charged Eylicio, Gabriel Mirabal, 33, and Dominic Anaya, 33, of Albuquerque, and Michael Jaramillo, 24, and Robert Romero, 26, of Santa Fe, with conspiring to distribute crack cocaine in Bernalillo and Santa Fe Counties between May 2012 and April 2013. Jaramillo also was charged with distributing crack cocaine in Santa Fe in March 2012. Romero was charged with possession of crack cocaine with intent to distribute in Santa Fe in July 2012, and with using and carrying a firearm in furtherance of a drug trafficking crime. Mirabal was charged with possessing cocaine with intent to distribute in Albuquerque in Feb. 2013.
Today Eylicio pled guilty to the conspiracy count of the indictment and admitted purchasing ounce quantities of crack cocaine and cocaine from a co-conspirator and then selling the drugs to others for profit. As an example, Eylicio acknowledged negotiating the purchase of three ounces of crack cocaine and eleven ounces of cocaine from the co-conspirator on June 27, 2012. Eylicio remains in federal custody pending his sentencing hearing, which has yet to be scheduled.
Jaramillo entered a guilty plea on March 21, 2014, to the conspiracy count and admitted purchasing crack cocaine from two of his co-defendants and then reselling it to others. Under the terms of his plea agreement, Jaramillo will be sentenced to 78 months in federal prison followed by four years of supervised release. He remains in custody pending his sentencing hearing which is scheduled for June 30, 2014.
Romero pled guilty to two drug trafficking charges and a firearms charge on May 13, 2014, under a plea agreement that requires him to be sentenced to ten years in federal prison followed by four years of supervised release. Romero admitted that on July 2012, he was stopped by law enforcement officers who searched Romero’s vehicle and found 11.1 grams of crack cocaine, which was packaged for resale, and a handgun Romero used for protection while distributing drugs. Romero remains in federal custody pending his sentencing hearing which is scheduled for Aug. 13, 2014.
Mirabal and Anaya have entered not guilty pleas to the indictment. If convicted of the drug trafficking charges against them, each faces a maximum penalty of not less than five years or more than 40 years in prison. They remain in custody pending trial. An indictment is merely an accusation, and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA and the HIDTA Region III Drug Task Force, with assistance from the 1st Judicial District Attorney’s Office for the State of New Mexico, and is being prosecuted by Assistant U.S. Attorney Nicholas J. Ganjei.
The Region III Drug Task Force is comprised of officers from the New Mexico State Police, Santa Fe Police Department and the Santa Fe County Sheriff’s Office and receives support from the HIDTA – High Intensity Drug Trafficking Area – program. HIDTA is a program of the White House Office of National Drug Control Policy that provides assistance to Federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States.
The investigation leading to the indictment, has been designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program, a nationwide Department of Justice initiative that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Air Force NCO Sentenced to 120 years in Prison for Sexually Exploiting Toddlers and Children to Produce Child PornographyRead the Press Release
Earlier today, William S. Gazafi, age 44, of Lusby, Maryland, was sentenced to 120 years in prison, for six counts of sexually exploiting a minor to produce child pornography.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney Rod J. Rosenstein of the District of Maryland, Special Agent in Charge Stephen E. Vogt of the FBI and Brigadier General Kevin J. Jacobsen, Commander of Air Force Office of Special Investigations. The sentence was imposed by U.S. District Judge Roger W. Titus of the District of Maryland.
According to the indictment, court documents and statements made at his plea hearing, on August 15, 2013, Gazafi engaged in a chat with an undercover officer on a website dedicated to incest discussions. During the chat, Gazafi discussed his sexual interest in children and advised that he had been drugging and molesting several children, including an infant. During the chat, Gazafi sent seven images to the undercover officer, three of which were child pornography Gazafi stated he produced after drugging the child. Gazafi was subsequently identified and arrested.
At the time of his arrest, Gazafi was carrying multiple digital media items. A forensic examination of those items, and others seized from his residence, revealed videos and images that Gazafi produced of children engaged in sexually explicit conduct, including one child as young as five months old. The images also depict children bound and handcuffed while sleeping. In addition to producing hundreds of images of five children, ranging in age from five months to seven years, Gazafi distributed the images he produced to others on the Internet. Gazafi was communicating with other child pornography producers, some of whom sent him images of children they were abusing. Thus far, three children have been identified as a result. Gazafi possessed over 15,000 images and videos of children being sexually abused, many of toddler and infant age. At the time of his arrest, Gazafi was a non-commissioned officer in the U.S. Air Force working at Andrews Air Force Base.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . For more information about internet safety education, please visit www.justice.gov/psc and click on the “resources” tab on the left of the page.
The case was investigated by the FBI, Air Force Office of Special Investigations and the Calvert County State’s Attorney’s Office. The case was prosecuted by Trial Attorney LisaMarie Freitas of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Thomas Sullivan of the District of Maryland.Air Force NCO Sentenced to 120 Years in Prison for Sexually Exploiting Toddlers and Children to Produce Child PornographyRead the Press Release
Drugged and Bound at least Five Children to Produce Child Pornography
Which Gazafi Then Distributed
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced William S. Gazafi, age 44, of Lusby, Maryland, today to 120 years in prison for six counts of sexually exploiting a minor to produce child pornography.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Brigadier General Keith M. Givens, Commander Air Force Office of Special Investigations.
“We investigate cases every day that make us shake our heads, but for someone to sexually abuse a five-month-old baby defies comprehension. Cases such as this serve as a reminder that in this day and age, a person’s status and position doesn’t immediately make him trustworthy,” said Steve Vogt, Special Agent in Charge of the FBI Baltimore Division. “Today, our children and our community are safer because of the dedication the agents and detectives who worked this case showed in tracking down this man and making sure he spends the rest of his life in prison.”
According to the indictment, court documents and statements made at his plea hearing, on August 15, 2013, Gazafi engaged in a chat on a website dedicated to incest discussions with an undercover officer. During the chat, Gazafi discussed his sexual interest in children and advised that he had been drugging and molesting several children, including an infant. During the chat, Gazafi sent seven images to the undercover officer, three of which were child pornography he stated he produced after drugging the child. Gazafi was subsequently identified and arrested.
At the time of his arrest, Gazafi was carrying multiple digital media items. A forensic examination of those items and others seized from his residence revealed videos and images that Gazafi produced of children engaged in sexually explicit conduct, including one child as young as five months old. The images also depict children bound and handcuffed while sleeping. In addition to producing hundreds of images of five children, ranging in age of five months to seven years, Gazafi distributed the images he produced to others on the Internet. Gazafi was communicating with other child pornography producers, some of whom sent him images of children they were abusing. Thus far, three children have been identified as a result. Gazafi possessed over 15,000 images and videos of children being sexually abused, many toddler and infant age. Gazafi is a non-commissioned officer in the U.S. Air Force working at Andrews Air Force Base. Gazafi remains detained.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI’s Maryland Child Exploitation Task Force, Air Force Office of Special Investigations and the Calvert County State’s Attorney’s Office for their work in the investigation. U.S. Attorney Rosenstein recognized the Calvert County Sheriff’s Office and the Metropolitan Police Department, for their assistance in the execution of the search warrant. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section and Assistant U.S. Attorney Thomas Sullivan, who are prosecuting the case.
Additional Charges Filed as a Result of Federal Investigation into Drug Trafficking in Lea CountyRead the Press Release
ALBUQUERQUE – In May 2014, a federal grand jury returned an indictment charging six individuals with narcotics trafficking offenses as the result of a multi-agency federal investigation primarily targeting drug traffickers in Lea County, N.M. Three more indictments have been filed as a result of that investigation, announced U.S. Attorney Damon P. Martinez, 5th Judicial District Attorney Janetta B. Hicks, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division and Commander Byron Wester of the Lea County Drug Task Force (LCDTF).
The three indictments were filed on June 18, 2014. The first indictment charges the following six individuals with trafficking methamphetamine in Lea County: Leroy Castillo, 32, Joe Padilla, 33, and Roland Cantu, 38, of Hobbs, N.M., Mario Enrique Flores, 28, of Artesia, N.M., and Anthony Joe Pisana, 28, of Roswell, N.M. The second indictment charges Ruben Cantu, 41, of Hobbs, with violating the federal firearms laws. The third indictment charges Antonio Acosta, 30, also of Hobbs with trafficking methamphetamine in Lea County and being a felon in possession of a firearm.
Pisana was arrested Friday morning (June 20, 2014) during a law enforcement operation and made his initial appearances in federal court in Roswell today. During Friday’s law enforcement operation, officers also executed two search warrants at a residence in Roswell where they recovered approximately 2.25 pounds of methamphetamine and more than $9,000.00 in cash.
Roland Cantu, Ruben Cantu and Acosta are in state custody and will be transferred to federal custody to face the charges in the indictments. Castillo, Padilla and Flores have yet to be arrested and are considered fugitives. Individuals with information regarding the whereabouts of Castillo, Padilla or Flores are asked to call the FBI at 505-622-6001.
The six-defendant indictment includes a conspiracy count against all six defendants; two counts of possession of methamphetamine with intent to distribute; and four counts of using communication devices to facilitate drug trafficking crimes. If convicted on the charges in the indictment, each defendant faces a mandatory minimum of five years to a maximum of 40 years in prison.
Ruben Cantu faces two counts of being a felon in possession of firearms and ammunition for unlawfully possessing a firearm and ammunition in March 2014. At the time, Cantu was prohibited from possessing firearms or ammunition because he previously had been convicted of a marijuana trafficking charge. If convicted, Cantu faces a maximum penalty of ten years in prison.
Acosta is charged with two counts of possession of methamphetamine with intent to distribute and one count of being a felon in possession of a firearm and ammunition in March 2014. At the time, Acosta was prohibited from possessing firearms or ammunition because he previously had been convicted of forgery, possession of a controlled substance, and possession of methamphetamine. If convicted, Acosta faces a maximum of 20 years in prison on the narcotics charges and ten years on the firearms charge.
These cases are being prosecuted by the U.S. Attorney’s Las Cruces Branch Office. The investigation of these cases, which was led by the Las Cruces and Roswell offices of the FBI and LCDTF with assistance from the Las Cruces office of the DEA and New Mexico State Police, was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
168 Juveniles Recovered in Nationwide Operation Targeting Commercial Child Sex TraffickingRead the Press Release
During the past week, the FBI, its local, state, and federal law enforcement partners, and the National Center for Missing and Exploited Children (NCMEC) conducted Operation Cross Country VIII, a week-long enforcement action to address commercial child sex trafficking throughout the United States. This operation included enforcement actions in 106 cities across 54 FBI field divisions nationwide and resulted in 168 recoveries of children who were being victimized through prostitution. Additionally, 281 pimps were arrested on state and federal charges.
“Child sex traffickers create a living nightmare for their adolescent victims,” said Leslie R. Caldwell, Assistant Attorney General for the Criminal Division of the Department of Justice. “They use fear and force and treat children as commodities of sex to be sold again and again. This operation puts traffickers behind bars and rescues kids from their nightmare so they can start reclaiming their childhood.”
“Targeting and harming America’s children through commercial sex trafficking is a heinous crime, with serious consequences.” said FBI Director James B. Comey. “Every child deserves to be safe and sound. Through targeted measures like Operation Cross Country, we can end the cycle of victimization.”
Operation Cross Country is part of the Innocence Lost National Initiative that was established in 2003 by the FBI’s Criminal Investigative Division, in partnership with the Department of Justice and NCMEC, to address the growing problem of child prostitution.
“Operation Cross Country reveals that children are being targeted and sold for sex in America every day,” said John Ryan, President and CEO of NCMEC. “We’re proud to partner with the FBI and provide support to both law enforcement and victim specialists in the field as they help survivors take that first step toward freedom.”
To date, the FBI and its task force partners have recovered nearly 3,600 children from the streets. The investigations and subsequent 1,450 convictions have resulted in lengthy sentences, including 14 life terms and the seizure of more than $3.1 million in assets.
Task force operations usually begin as local enforcement actions that target truck stops, casinos, street “tracks,” and websites that advertise dating or escort services, based on intelligence gathered by officers working in their respective jurisdictions. Initial arrests are often violations of local and state laws relating to prostitution or solicitation. Information gleaned from those arrested frequently uncovers organized efforts to prostitute women and children across many states. FBI agents further develop this evidence in partnership with U.S. Attorney’s Offices and the U.S. Department of Justice’s Child Exploitation and Obscenity Section so that prosecutors can help bring federal charges in those cities where child prostitution occurs.
The Innocence Lost National Initiative partners with NCMEC to provide training for state and federal law enforcement agencies, prosecutors and social service providers from across the country.
The FBI thanks its local, state, and federal law enforcement partners representing 392 separate agencies for their ongoing enforcement efforts, and participation in Operation Cross Country VIII.
The following list denotes FBI divisions, not necessarily actual cities, where juveniles were recovered and pimps were arrested.FBI Division
Juveniles Recovered
Pimps Arrested
Albany
0
0
Albuquerque
0
0
Anchorage
0
3
Atlanta
11
15
Baltimore
2
5
Birmingham
1
3
Boston
0
0
Buffalo
2
0
Charlotte
0
3
Chicago
13
4
Cincinnati
0
1
Cleveland
16
12
Columbia
1
2
Dallas
2
2
Denver
18
11
Detroit
5
6
El Paso
0
1
Houston
4
4
Indianapolis
4
3
Jackson
2
19
Jacksonville
0
1
Kansas City
2
7
Knoxville
0
1
Las Vegas
7
2
Little Rock
2
5
Los Angeles
10
12
Louisville
0
4
Memphis
2
5
Miami
3
4
Milwaukee
6
12
Minneapolis
1
9
Mobile
0
0
Newark
1
8
New Haven
1
1
New Orleans
3
17
New York
3
3
Norfolk
0
1
Oklahoma City
2
14
Omaha
1
2
Philadelphia
0
2
Phoenix
5
21
Pittsburgh
0
3
Portland
1
2
Richmond
0
2
Sacramento
9
7
Salt Lake City
0
0
San Antonio
6
3
San Diego
2
6
San Francisco
6
13
Seattle
4
13
Springfield
2
1
St. Louis
0
1
Tampa
8
3
WFO
0
2
Total
168
281
Friday 20 June 2014
Winnebago Man Sentenced for Child Abuse Resulting in DeathRead the Press Release
United States District Court Judge Joseph F. Bataillon sentenced Mark Anthony Grant, age 22, of Winnebago, Nebraska to eight years of imprisonment for his conviction for child abuse resulting in death. Grant was further ordered to serve three years of supervised release following his release from imprisonment.
Grant, an enrolled member of the Omaha Tribe of Nebraska, resided on the Winnebago Indian Reservation with Julie Paulson and her children, including Paulson’s 14 month old son. On the morning of September 10, 2013, Paulson’s son was still sleeping when she was ready to leave for work, so she left him with Grant to take to the babysitter later that morning. Approximately 90 minutes later, Grant took the child to the emergency room at the Indian Health Services Hospital in Winnebago. The child’s eyes were fixed and dilated upon arrival. The doctors indicated those conditions were consistent with head trauma. The child was later life-flighted to Children’s Hospital where he eventually died.
Doctors at Children’s Hospital determined that the child had significant cerebral edema, severe bilateral retinal hemorrhages and bilateral subdural hematomas. No other medical conditions were found which would have accounted for his condition and no further traumatic injuries were discovered during his hospitalization. The doctors determined the child’s injuries had to have been caused by a violent rotational injury which caused the child’s head to whip back and forth or side to side. Thus, his injuries were classified as abusive head trauma.
There were no witnesses to the event as only Grant and the child were in the home at the time of the injury.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Wilkinsburg Man Stole Credit Card Numbers to Purchase Gift Cards and GoodsRead the Press Release
PITTSBURGH - A Wilkinsburg man pleaded guilty in federal court to a charge of conspiracy, United States Attorney David J. Hickton announced today.
Richard Gerald Davenport, Jr., 26, pleaded guilty yesterday to one count before United States District Judge Terrence F. McVerry.
According to the information presented to the court, Davenport conspired with another individual to steal credit card numbers, which he and others used to buy gift cards and merchandise at Rite-Aid stores and others.
Judge McVerry scheduled the sentencing for Sept. 26, 2014, at 10:30 a.m. The law provides for a maximum total sentence of not more than five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation led to the prosecution of Richard Gerald Davenport.
West Seneca Woman Charged with Threatening a WitnessRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an indictment charging Haley Connor, 19, of West Seneca, N.Y., with retaliating against a witness, and witness tampering. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that, according to the indictment, from early 2014 to March 8, 2014, the defendant threatened to cause bodily injury to a witness for information given by the witness to a law enforcement officer. The information related to Michael Mitchell’s involvement in bank robberies and bank larcenies. Mitchell is currently charged with committing three bank robberies.
“As has been said before, law enforcement takes a zero tolerance when it comes to threatening a witness,” said U.S. Attorney Hochul. “This defendant – while not accused of committing the underlying crime – now stands to serve as much time in prison of those who did, solely because of her attempt to subvert the criminal justice system.”
The indictment is the culmination of an investigation by the Federal bureau of Investigation.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Week in Review - South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Africa Gunn, 36, of South Bend, Indiana pled guilty to the felony offense of conspiracy to defraud the government with respect to tax claims. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Internal Revenue Service-CID. Sentencing has been set for 9/18/2014. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
- Oscar Martinez, 34, of Logansport, IN pled guilty to the felony offense of conspiracy to distribute cocaine over 500 grams. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Agency. Sentencing has been set for 9/25/2014. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
- David Carranza, 32, of Goshen, IN pled guilty to the felony offense of knowingly using a communication facility in causing or facilitating another felony. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Agency. Sentencing has been set for 9/17/2014. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- John O. Williams, 43, of Osceola, IN was sentenced to time served, 2 years supervised release, $36,962.50 restitution and a $100 special assessment fee after pleading guilty to the felony offense of theft of government property. According to documents filed in this case, John O. Williams from in or around June 2010 through December 2010, applied for and received extended unemployment insurance benefits through the State of Indiana Department of Work Force Development. He submitted weekly vouchers to IDWD and intentionally answered “No” to the question as to whether he was working when in truth and in fact he was employed at Company A in Elkhart, Indiana during the specified week. He also failed to disclose that he received wages during that time period. He spent the unemployment benefit payments he received on personal expenses. He does not dispute that the money for these unemployment insurance benefits came from the federal government, extended unemployment insurance benefits and ARRA funds and was in excess of $9,000. This case was the result of an investigation by Department of Labor and Indiana Department of Work Force Development. This case was prosecuted by Assistant United States Attorney Barbara Brook.
- Joseph D. McLaren, 31, Howe, IN was sentenced to 2 years supervised probation, Restitution of $44,002.25 and $100 special assessment after pleading guilty to the felony offense of theft of government property. According to documents filed in this case, Joseph D. McLaren from in or around June 2009 through October 2010, applied for and received extended unemployment insurance benefits through the State of Indiana Department of Work Force Development. He submitted weekly vouchers to IDWD and intentionally answered “No” to the question as to whether he was working when in truth and in fact he was employed at Company A and/or Company B, in Elkhart, Indiana during the specified week. He also failed to disclose that he received wages during that time period. He spent the unemployment benefit payments he received on personal expenses because he needed the money. He does not dispute that the money for these unemployment insurance benefits came from the federal government, extended unemployment insurance benefits and ARRA funds and was in excess of $20,000. This case was the result of an investigation by the Department of Labor and Indiana Department of Work Force Development. This case was prosecuted by Assistant United States Attorney Barbara Brook.
Week in Review - HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA- Melissa Yates, 37, of Michigan City, Indiana pled guilty to the felony offense of conspiracy to commit mail fraud. This charge was filed as a result of an investigation by the United States Postal Service and the Federal Bureau of Investigation. Sentencing has been set for 8/26/2014. This case is being prosecuted by Assistant United States Attorney Toi Houston.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Michael McClellan, 40, of Richton Park, Illinois was sentenced to 51 months, supervised release of 2 years and to pay $212,675.68 in restitution of which $203,844.77 shall be joint and several with co-defendant Tina McClellan after being found guilty of the felony offenses of bringing in and harboring aliens, mail fraud and monetary transactions in criminally derived property. According to documents filed in this case, McClellan and his wife submitted false bills to the State of Illinois and Healthy Start for child care services. They used more than $10,000 of fraud proceeds to buy the Paragon Restaurant in Schererville. At the restaurant, Michael filed false reports with Indiana Work Force Development not reporting the illegal aliens he paid in cash. This case was the result of an investigation by the Bureau of Immigration & Customs Enforcement (ICE) and the Department of Labor. This case was prosecuted by Assistant United States Attorney Gary Bell.
- Tina McClellan, 38, of Richton Park, Illinois was sentenced to 1 day time served, 24 months of supervised release with home detention of 12 months and to jointly pay $203,844.77 to the State of Illinois in restitution after being found guilty of the felony offenses of bringing in and harboring aliens, mail fraud and monetary transactions in criminally derived property. According to documents filed in this case, McClellan and her husband submitted false bills to the State of Illinois and Healthy Start for child care services. They used more than $10,000 of fraud proceeds to buy the Paragon Restaurant in Schererville. This case was the result of an investigation by the Bureau of Immigration & Customs Enforcement (ICE) and the Department of Labor. This case was prosecuted by Assistant United States Attorney Gary Bell.
- Robert Ross, 28, of Gary, Indiana was sentenced to 63 months imprisonment and 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, an employee of the Gary Sanitation District testified that Ross had pointed a firearm at him and another Gary city worker, prompting them to call 911. Police responded to the scene and arrested Ross. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
- Melissa Yates, 37, of Michigan City, Indiana pled guilty to the felony offense of conspiracy to commit mail fraud. This charge was filed as a result of an investigation by the United States Postal Service and the Federal Bureau of Investigation. Sentencing has been set for 8/26/2014. This case is being prosecuted by Assistant United States Attorney Toi Houston.
Week in Review - Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITION
- Troy Ditiway, 27, of Fort Wayne, Indiana, was sentenced to 60 months imprisonment, 5 years supervised release, $100 special assessment and $2,000 restitution, after pleading guilty to the felony offense of possessing visual depictions which were shipped and transported using any means and facility of interstate and foreign commerce, the production of which involved the use of an actual minor engaged in sexually explicit conduct. According to documents filed in this case, in February 2012 a Federal Search Warrant was executed at a residence in Fort Myers, Florida after an online undercover investigation led members of the Fort Myers, Florida FBI to identify a child pornography distributor. A confession was obtained by the individual who indicated that he routinely “chatted” with individuals via an instant messenger service. When receiving child pornography during “photoshare” sessions during these chats, the individual would save the received images within a folder. A review of the consensual takeover account was performed and task force officers observed messenger conversations with Ditiway. These conversations contained verbiage indicative of child pornography distribution between both parties. A forensic preview on a laptop was conducted and observed were images depicting child pornography. This investigation led officers to the Fort Wayne, Indiana area wherein a Federal Search Warrant was executed in September 2012, and graphic images of child pornography were recovered. This case was the result of an investigation by the Federal Bureau of Investigation and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
Waterloo Internent "Molly" Dealer to Federal Prison for Drug ConspiracyRead the Press Release
A Waterloo man who imported MDMA (also known as “ecstasy” or “Molly”) he ordered through the internet was sentenced yesterday to more than 12 years in federal prison.
Adam Brian Lawin, age 23, from Waterloo, Iowa, received the prison term after a February 10, 2014, guilty plea to conspiracy to distribute MDMA.
In a plea agreement, Lawin admitted that he obtained the MDMA by utilizing the highly encrypted drug trafficking marketplace website, Silk Road. Lawin also admitted he insulated himself from detection by law enforcement by having the packages delivered to friends or acquaintances, and paying those individuals a nominal fee (either a small amount of MDMA or cash) for delivering the packages to him. During a search of Lawin’s Waterloo residence on April 26, 2013, law enforcement seized over 1.3 kilograms of MDMA, printed materials describing how to manufacture various drugs, and a draft of a book being authored by Lawin regarding the use of Bitcoin to purchase drugs through Silk Road. During searches of other locations on the same date, officers seized over 250 grams of MDMA destined for Lawin.
Lawin was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Lawin was sentenced to 147 months’ imprisonment. A special assessment of $100 was imposed, and Lawin was ordered to forfeit $100,000 in drug proceeds. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Lawin is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Dan Chatham and was investigated by the Department of Homeland Security, Homeland Securities Investigations, and the Tri-County Drug Enforcement Task Force.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is No. CR13-2040-1-LRR.
U.S. Attorney Announces Selection of Plano Lead ProsecutorRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – U.S. Attorney John M. Bales announced the appointment of J. Kevin McClendon as the Attorney in Charge of the Plano office of the United States Attorney for the Eastern District of Texas.
Assistant U.S. Attorney (AUSA) J. Kevin McClendon will oversee the daily operations of the Plano office which includes a staff of 31 federal prosecutors, support, and administrative personnel.
Born and raised in Texas, McClendon graduated from Texas Tech University in 1986 and Texas Tech University School of Law in 1989. He has been an AUSA for the U.S. Attorney’s Office for the Eastern District of Texas since September 2004, serving as the Affirmative Civil Enforcement (ACE) Coordinator, the Professional Responsibility Officer (PRO) for the Criminal Division, Civil Health Care Fraud Coordinator, and the Plano Office Intern Co-coordinator. Prior to joining the U.S. Attorney’s Office, McClendon was an Assistant Attorney General in the Medicaid Fraud Control Unit of the Texas Attorney General for nearly 10 years, working criminal health care fraud cases. He was also a Special Assistant U.S. Attorney for the Western District of Texas, an Assistant Criminal District Attorney in Lubbock County, and worked as an associate at a small law firm.
“I am very pleased to announce that Kevin McClendon has been selected to lead our busy Plano office,” said U.S. Attorney Bales. “He is the epitome of quiet strength which he couples with a wisdom that will serve not only our office well but also our law enforcement partners. Kevin is absolutely the right person to lead us to the next level of achievement.”
The Eastern District of Texas includes 43 counties stretching from the Gulf of Mexico to the Oklahoma/Texas border. There are 6 staffed offices located in Beaumont, Lufkin, Tyler, Texarkana, Plano and Sherman with a total of 51 federal prosecutors.Two Tipton County Men Indicted for Manufacturing and Distributing "Spice"Read the Press Release
Memphis, TN – Travis Fox, age 36, and Jason Forbess, age 36, both of Atoka, TN, have been charged in a two count indictment with manufacturing and distributing synthetic drugs and employing minors to distribute synthetic drugs, announced Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee and 25th District Attorney General Mike Dunavant.
The indictment alleges that beginning in April of 2009, Fox and Forbess manufactured and distributed synthetic drugs often known by the street names “Spice” or “K2.” These drugs mimic the hallucinogenic effects of marijuana with the added side effects of hallucinations, seizures, and dependency/addiction not usually associated with marijuana users. Fox and Forbess marketed and sold their products across the United States on their various internet websites. Beginning in 2013, the Fox and Forbess employed minors to help distribute the synthetic drugs.
“This indictment sends a clear message to those who would shamelessly peddle these dangerous substances that were never intended for human use: this behavior will not be tolerated and you will face stiff and serious consequences,” said U.S. Attorney Stanton.
“Synthetic drugs and other designer drugs are devastating communities across the United States. Synthetic drugs have been especially harmful to high school kids because the products are marketed as ‘legal’ marijuana, when, in fact, these substances are extremely dangerous and illegal,” said District Attorney General Dunavant. “We will continue working to protect these young adults, and to shut down and hold accountable individuals who manufacture and distribute synthetic drugs without regard for the law or public safety.”
Fox and Forbess have been charged with one count of conspiracy to possess and distribute and one count of conspiring to employ a person under the age of 18 years of age to possess and distribute. If convicted they face up to 25 years in prison and a fine of up to $1 million.
This investigation was conducted by the DEA and Tipton County Sheriff’s Office. This case is being prosecuted for the government by Special Assistant United States Attorney Samuel R. Stringfellow.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.Two Men Dubbed the ‘Cowboy Gun Bandits’ Arrested by FBI and LAPD on Federal Indictment That Outlines Series of Armed RobberiesRead the Press Release
LOS ANGELES – Two men who earned the moniker the “Cowboy Gun Bandits” for brandishing a large-caliber revolver during a series of robberies have been arrested and are due to be arraigned this afternoon in United States District Court.
Dominic Dorsey, 46, of Hollywood, and Reginald Bailey, 69, of the Jefferson Park district of Los Angeles, were named in a federal grand jury indictment returned on June 3. The two men were taken into custody Thursday by special agents with the FBI and officers with the Los Angeles Police Department.
The indictment alleges a conspiracy to interfere with commerce in violation of the Hobbs Act. The indictment also charges them with five specific Hobbs Act robberies and five counts of using a firearm during the robberies.
The conspiracy count in the indictment alleges that Dorsey and Bailey participated in eight robberies, specifically:
a September 30, 2013, robbery at a Papa John’s pizza restaurant in Canyon Country;
an October 6, 2013, robbery at an ARCO gas station in Newhall;
an October 18, 2013, robbery at a Chevron gas station in Woodland Hills;
an October 25, 2013, robbery at an ARCO gas station in Encino;
an October 26, 2013, robbery at a Mobil gas station in Thousand Oaks;
an October 27, 2013, robbery at a USA Gas station in Earlimart (in California’s Central Valley);
an October 28, 2013, robbery at a Valero gas station in Atwater Village;
a November 5, 2013, robbery of a Citibank branch in Glendale that netted more than $55,000.
Many of the robberies were captured by video surveillance, which allowed investigators to determine that one of the robbers was missing part of his ring finger on his left hand. The video surveillance evidence helped lead authorities to Bailey, whose left hand is missing a portion of his ring finger.
Each of the Hobbs Act violations – a total of six – carries a statutory maximum penalty of 20 years in federal prison. The gun violations carry potential life sentences, but also would bring mandatory minimum sentences of seven years for the first count and 25 years for each of the four additional counts.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The investigation into the string of robberies was conducted by Los Angeles Metropolitan Task Force on Violent Crime, which is made up of investigators with the Federal Bureau of Investigation, the Los Angeles Police Department and the Los Angeles Sheriff’s Department. The Glendale Police Department provided substantial assistance during the investigation.
Release No. 14-077
Two Men Charged with Operating a Methamphetamine Laboratory in LancasterRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that John Ruth, 39, of and Michael Jachimiak, 37, both of Lancaster, N.Y., were arrested and charged by criminal complaint with possession with intent to distribute a mixture and substance containing methamphetamine, conspiracy to manufacture, with intent to possess, a mixture and substance containing methamphetamine, and maintaining a drug-involved premises. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 40 years, a $5,000,000 fine or both.
Assistant U.S. Attorney Eric M. Opanga, who is handling the case, stated that according to the complaint, on June 19, 2014, the Lancaster Police Department made certain investigative discoveries regarding 97 Field St. after receiving information regarding a possible methamphetamine laboratory. In the trash for this address, investigators recovered packaging for pseudoephedrine, the precursor of methamphetamine, empty bottles of drain cleaner, lighter fluid, used rubber tubing, plastic “one pot” methamphetamine laboratory bottles and an empty cold pack.
A search warrant was then applied for and executed at the 97 Field St. residence. During the execution of the search warrant, officers and agents discovered four individuals including defendants John Ruth and Michael Jachimiak. They also discovered quantities of fuel, light fluid, brake fluid, sulfuric acid, sodium chloride, sodium hydroxide, ammonium nitrate, pliers, wire cutters, plastic bottles, rubber tubing, and a plastic funnel. The items were assembled into a “pne pot” methamphetamine laboratory and a hydrochloric acid gas generator. Also located during the search were two hypodermic needles containing quantities of a liquid.
“Methamphetamine poses more than a danger to the users,” said U.S. Attorney Hochul. “Because of the use of volatile and dangerous chemicals, the production of this toxic substance also creates a danger for any homes nearby. Thankfully, the actions of the community here averted a possible disaster.”The defendants made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy.
The criminal complaint was the result of an investigation by the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge James J. Hunt, New York Field Division and the Lancaster Police Department, under the direction of Chief Gerald Gill.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Two Face Federal Hobbs Act Conspiracy, Robbery and Firearm Charges in Alleged West Warwick Home InvasionRead the Press Release
PROVIDENCE, R.I. – Criminal complaints unsealed in federal court in Providence today allege that two Providence men, Kiplagatt Stewart, 43, and Allen D. Prout, 42, conspired to and participated in an armed Hobbs Act robbery home invasion in West Warwick in September 2012, during which approximately $14,000 in cash was stolen and one of the alleged intruders was shot.
Stewart was arrested earlier today at his Providence residence by agents and officers from the Bureau of Alcohol Tobacco, Firearms and Explosives (ATF), including members of an ATF Special Response Team, Providence and West Warwick Police Departments, and the Rhode Island State Police.
Prout has been detained in federal custody since June 6, 2014, on a criminal complaint charging him with allegedly participating in a Hobbs Act conspiracy to commit an armed home invasion in Providence, where he was expecting to find two kilos of cocaine. He was arrested by ATF agents and the Providence Police Department SWAT team moments after he and a co-defendant, Emmett Blyden, 43, allegedly took possession of firearms allegedly to be used in the planned home invasion.
The criminal complaint unsealed in U.S. District Court today is announced by United States Attorney Peter F. Neronha; Daniel J. Kumor, Special Agent in Charge of the Boston Field Divisionof ATF; Rhode Island Attorney General Peter F. Kilmartin; West Warwick Police Chief Colonel Richard G. Silva; Providence Police Chief Colonel Hugh T. Clements, Jr.; and, Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.
According to an affidavit filed with the court in support of criminal complaints and arrest warrants for Stewart and Prout, it is alleged that on September 3, 2012, West Warwick Police responded to reports of shots fired in the Providence Street area. Upon investigation, officers learned of an alleged home invasion during which it is alleged that two armed men robbed an individual of approximately $14,000 in cash, money the victim told police was to have been used for the purchase of oxycodone.
According to the affidavit, the victim told police he was assaulted and that a gun was held to his head during the incident. According to the victim, as the intruders fled his residence he retrieved a firearm and fired, striking Stewart in the buttocks as he entered a vehicle. Two women and several children in the residence at the time of the incident were not injured.
During the course of the investigation, West Warwick Police identified Kiplagatt Stewart as one of the alleged intruders and arrested him on state charges on September 7, 2012. At the time of his arrest it was determined that a bullet was lodged in Stewart. He was presented in state court by the Attorney General’s office as a probation violator on a previous conviction for armed robbery. He was sentenced to serve 18 months in state prison as a probation violator.
As the investigation progressed, West Warwick Police identified Allen Prout as the second individual who allegedly participated in the home invasion. He was arrested on state charges on October 16, 2012, while at the Cranston residence of his girlfriend.
The criminal complaint unsealed today charges Stewart and Prout with one count each of Hobbs Act conspiracy, Hobbs Act robbery, and use of a firearm in furtherance of a crime of violence. If convicted of these charges, the defendants face statutory sentences of up to life in federal prison.
Stewart was ordered detained in federal custody following his initial appearance before U.S. District Court Magistrate Judge Patricia A. Sullivan. Prout has been detained in federal custody since his arrest on June 6.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
Rhode Island State Police assisted with the processing of evidence collected in this matter.
This case was brought as part of the Rhode Island Urban Violent Crime Initiative. The Rhode Island Urban Violent Crime Initiative is a local, state and federal law enforcement collaboration to proactively identify, investigate and prosecute individuals responsible for crimes of violence in urban neighborhoods.###
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]Two Danbury Residents Charged with Operating U.S. Postal Money Order Fraud SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANTHONY STERLIN CANTAVE, 34, and VENUS VERGES, 33, both of Danbury, were arrested today on an indictment charging them with participating in a conspiracy involving the theft of monies from the U.S. Postal Service. The indictment was returned by a federal grand jury in New Haven on June 18 and the defendants were arrested today.
According to the indictment, between August and October 2013, CANTAVE and VERGES purchased U.S. Postal Service money orders in amounts ranging from $400 to $1000 at post offices in Fairfield County. After the money orders were purchased, the defendants used a mobile banking application to deposit the funds into bank accounts they controlled. Shortly after depositing the funds, the defendants returned to the post offices from which the respective money orders had been purchased, failed to disclose that they had deposited the funds, returned the money orders and were refunded their money.
CANTAVE and VERGES are charged with one count of conspiracy to convert public money, and offense that carries a maximum term of imprisonment of five years. In addition, CANTAVE is charged with 11 counts and VERGES is charged with five counts of conversion of public money, an offense that carries a maximum term of imprisonment of 10 years.
CANTAVE and VERGES appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and entered pleas of not guilty. They are currently detained.
The case has been assigned to U.S. District Judge Michael P. Shea in Hartford.
This matter is being investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney John H. Durham.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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Tom Carson
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[email protected]Two Buffalo Men Charged with Setting a Buffalo Business on FireRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Ryan Smolinski, 26, and Lowell Carey, 53, both of Buffalo N.Y., were arrested and charged by criminal complaint with maliciously damaging or destroying, or attempting to damage or destroy, by means of fire or an explosive, any building used in interstate commerce, unlawful possession of an unregistered firearm, and conspiracy to commit any offense against the United States. The charges carry a mandatory minimum of five years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that according to the complaint, on June 13, 2014, the Buffalo Fire Department responded to a call at 349 Ontario St., occupied by WNY Property Contractors. A fire occurred during the night and caused $5000.00 in damage. Investigators determined that the fire had been caused by two Molotov cocktails.
The complaint further stated that surveillance video shows one individual lighting and placing a bottle underneath a garage door on the side of the building and another individual throwing another lit bottle on top of the roof of the building. Those individuals were identified as Ryan Smolinski and Lowell Carey.
The defendants made an initial appearance today before U.S. Magistrate Judge Jeremiah J. McCarthy. Smolinski was released on conditions. Carey is being held pending a detention hearing on June 24, 2014 at 10:30 a.m.The criminal complaint is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, and the Buffalo Fire Department, under the direction of Commissioner Garnell Whitfield.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Tampa Man Sentenced for Bank Fraud ConspiracyRead the Press Release
Tampa, FL – U.S. District Judge Richard A. Lazzara today sentenced Guerryson Torres (50, Tampa) to 33 months in federal prison for conspiracy to commit bank fraud. The court also ordered a money judgment in the amount of $993,828.75, and restitution to the victims totaling $973,486.69.
Torres pleaded guilty on March 28, 2014.
According to court documents, from June 2008 to August 2009, Torres conspired with others to defraud GTE Federal Credit Union and Grow Financial Credit Union. Torres owned and operated a company named Tampa Bay Auto Remarketing (TBAR) that contracted to sell cars and boats that had been repossessed by the credit unions. Under TBAR’s agreements with the victim credit unions, after selling the vehicles, TBAR was supposed to send the money from the sale of the vehicle, less an agreed-upon fee, to the financial institutions. However, for about 40% of the sales, Torres and his co-conspirators prepared and sent the credit unions false invoices that underreported the sales price of each vehicle, thereby stealing the difference between the underreported sales price and the actual sales price. In addition, with respect 77 of the cars sold for GTE, Torres and TBAR simply pocketed the entire sales amount of the vehicles, and never paid GTE at all.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Mark E. Bini.
Tampa Man Pleads Guilty to Production of Child Pornography on MacDill Air Force BaseRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Erich Clifford Mandell Ramos (27, Tampa) today pleaded guilty to production of child pornography. Mandell Ramos faces a minimum mandatory term of 15 years, up to a maximum penalty of 30 years in federal prison.
According to the plea agreement, Mandell Ramos sexually abused a minor while visiting a home at MacDill Air Force Base. Mandell Ramos took sexually explicit photographs of the minor victim and instructed her not to tell her mother. He paid the minor approximately $20.00.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Stacie B. Harris.
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.
Sumter Man Sentenced to Fifteen Years in Drug Trafficking and Firearm CaseRead the Press Release
Contact Person: Jay Richardson (803) 929-3000
Columbia, South Carolina ----- United States Attorney Bill Nettles stated that Alvis Damon Williams, age 27, of Sumter, was sentenced today in federal court in Columbia, South Carolina, to a term of imprisonment of 180 months in federal prison. The defendant was convicted by a federal jury on February 18, 2014. Williams was sentenced for dealing in crack cocaine and cocaine (21 U.S.C. §841), possessing a firearm in furtherance of narcotics trafficking (18 U.S.C. §924(c)), and illegally possessing a firearm as a convicted felon (18 U.S.C. §922(g)). Williams had multiple prior felony drug convictions and was sentenced by The Honorable Joseph F. Anderson, United States District Judge.
A Federal Grand Jury returned a four-count indictment on August 20, 2013, based on Williams’ actions in June of 2013, when Williams possessed a firearm while distributing cocaine in Sumter. Officers with the Sumter County Sheriff’s Office observed Williams distributing cocaine and stopped Williams’s Chevrolet Impala finding a .40 caliber Colt pistol. In addition to the pistol, Williams had $1,600 in cash, crack and powder cocaine secreted inside a false-bottom canister, marijuana, a scale, three cell phones, plastic baggies, and creatine, which is used to cut or dilute cocaine.
The case was the result of a collaborative effort between the Sumter County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms, and Explosives. “The cooperation of local and federal law enforcement ensures that dangerous criminals are caught and prosecuted,” said United States Attorney Bill Nettles. “The Sumter County Sheriff’s Office deputies were integral in the investigation of Williams. This case demonstrates the United States Attorney’s Office’s dedication in joining with local law enforcement agencies to remove violent drug offenders from the streets.”
The case was prosecuted by Assistant United States Attorney Jay N. Richardson.# # #
State Auditor Pleads Guilty to Theft from A Federal ProgramRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today another conviction in the ongoing federal and state investigation into corruption at the Bureau of Auditing and Compliance Services for the Louisiana Department of Children and Family Services (DCFS). DCFS leadership has cooperated fully with the investigation and provided valuable assistance.
KANEASHA L. GOSTON, age 38, of Baton Rouge, Louisiana, pled guilty yesterday afternoon before U.S. District Judge James J. Brady to theft from a federally-funded entity, in violation of Title 18, United States Code, Section 666(a)(1)(A). She faces up to 10 years imprisonment, a fine up to $250,000, forfeiture of the proceeds from the offense, restitution, and up to 3 years of supervised release following a term of imprisonment. A sentencing date has not yet been set.
GOSTON was employed with DCFS’s Bureau of Auditing and Compliance Services which was responsible for safeguarding assets against theft and unauthorized use; ensuring that transactions were properly authorized and recorded; and ensuring compliances with management policies, as well as federal and state laws and regulations. During the period she was employed with this department, DCFS received over a billion dollars annually in federal funds.
At yesterday’s hearing, GOSTON admitted to submitting fraudulent reimbursement receipts to receive money for official state travel that did not occur. The fake receipts which were submitted were signed both by GOSTON and by DCFS Audit Director, Delrice Augustus, who also recently pled guilty as part of this scheme. When the requested amount of reimbursement would be received, GOSTON and Augustus would split the fraudulent payments. Augustus has been charged and pled guilty for his role in this and related fraudulent conduct.
U.S. Attorney Green stated: “Public corruption will continue to be a priority for this office, particularly when such corruption involves officials responsible for the proper handling of millions in federal funds. In waging this fight, we are encouraged by the active cooperation and assistance provided by the DCFS leadership in this investigation. The vast majority of public servants at DCFS are honest and hardworking individuals who despise corruption. All public servants should be vigilant against corruption and report wrongdoing immediately.”
Louisiana Inspector General Stephen Street commented: “Those who abuse positions of trust in order to steal from the taxpayers should know that the risk of criminal prosecution is high. This guilty plea is the latest example of that.”
This matter is being handled by the United States Attorney’s Office, the Louisiana State Police, the Louisiana Inspector General’s Office, and the Federal Bureau of Investigation. This matter is being prosecuted by Assistant United States Attorney Corey R. Amundson and Special Assistant United States Attorney J. Brad Casey.
Sisters Sentenced in Sex Trafficking CaseRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Jerese Blue, 27, and Chellsie Blue, 24, both of Rochester, N.Y., who were convicted of conspiracy to commit sex trafficking of minors, were sentenced by U.S. District Judge Frank P. Geraci, Jr. Chellsie Blue was sentenced to 72 months in prison and five years supervised release. Jerese Blue was sentenced to 108 months in prison and five years supervised release.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that the sisters recruited two child victims to engage in commercial sex acts. In April 2012, the defendants posted ads on Backpage.com to advertise the victims as “escorts.” Chellsie and Jerese Blue then transported the victims to meet with customers and engage in commercial sex acts. The defendants also used their residences on Arnett Boulevard in Rochester for the minors to engage in commercial sex acts.
“It has been often said that sex trafficking is a form of modern day slavery,” said U.S. Attorney Hochul. “The fact that the defendants here compelled two children into this dark world only adds to the egregiousness of the crime.”
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation's Child Exploitation Task Force, which includes the Rochester Police Department, under the direction of Chief Michael Ciminelli.Self-Described New York Money Manager Pleads Guilty in $5 Million Fraud SchemeRead the Press Release
Thomas Bannon, the president of Overseas Investors LLC and Overseas Investors International, Ltd. (collectively, “Overseas Investors”), pleaded guilty today in federal court in Brooklyn, New York, to one count of wire fraud for defrauding an individual entrepreneur of $5 million through, among other things, false representations about his access to hedge funds and wealthy investors. When sentenced on October 3, 2014, Bannon faces up to 20 years in prison and the payment of $5,001,949 in restitution to the defrauded entrepreneur. Co-defendant Theodore Sweeten pleaded guilty on June 19, 2013, to one count of wire fraud and was sentenced to 48 months in prison on January 7, 2014.1
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office.
“Thomas Bannon claimed to be a money manager who had access to millions of dollars. In reality, Bannon was a con man and the only access he had was to the phony bank documents that he used to perpetrate this bold fraud,” stated United States Attorney Lynch. “This Office is unrelenting in its commitment to bring to justice those who seek to defraud unsuspecting investors through lies and deceit.” Ms. Lynch expressed her appreciation to the Federal Bureau of Investigation, the agency responsible for leading the government’s investigation.
Bannon falsely represented to the victim entrepreneur that Overseas Investors collaborated with hedge funds and wealthy investors who were willing, in exchange for a substantial fee, to “lease” funds and set up bank accounts in its clients’ names that contained the leased funds. Based on this and other misrepresentations, Bannon and his co-conspirators induced the victim to invest $5 million in order to “lease” a credit line of $100 million, which in turn would enable them to generate millions of dollars in profit through special investment programs. In furtherance of that scheme, Bannon and his co-conspirators falsely represented that the victim’s funds would be held in an attorney escrow account pending confirmation of the posting of $100 million in the leased-funds account. In fact, Bannon and his co-conspirators simply distributed the victim’s $5 million among themselves and falsely represented that a $100 million account had been created at HSBC by sending the victim fabricated bank documents on HSBC letterhead.
When the victim discovered that the bank documents on HSBC letterhead were phony, he requested a refund of the $5 million that he had deposited into the attorney escrow account. In response, Bannon and his co-conspirators told the victim that the money had been disbursed to the investors who created the $100 million account. In particular, Bannon concealed from the victim the fact that he had requested and received $600,000 of the escrowed funds prior to the issuance of the fabricated HSBC documents.
The government’s case is being prosecuted by Assistant United States Attorneys Winston M. Paes and Marcia M. Henry.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The Defendant:
THOMAS BANNON
Age: 82
Residence: New York, New York
E.D.N.Y. Docket No. 12-CR-471
_________________________________________________________________________
1 The case against co-defendant Robert Bardey is pending and scheduled for trial. The charges against Bardey are merely allegations, and he is presumed innocent unless and until proven guilty.
Sanford Man Sentenced to 15 Years for Bank RobberyRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Michel
D’Angelo, 35, of Sanford, Maine, was sentenced today in U.S. District Court by Judge Nancy
Torresen to 15 years in prison and three years of supervised release for bank robbery. D’Angelo
pleaded guilty on February 13, 2014.Court records reveal that on September 21, 2012, D’Angelo stole about $1,300 from
Kennebunk Savings Bank in Berwick. D’Angelo robbed the bank disguised as a woman and
wearing a sweat suit, wig, sunglasses and a purse. He also used white surgical tape to cover a
“Real Deal” tattoo on his fingers and a pink scarf to conceal a large “Karma” tattoo on his neck.
He approached the teller counter, verbally demanded cash and said that he had a bomb in his bag
and would set it off if the teller pushed any buttons.
D’Angelo was subject to an enhanced sentence as a career offender for prior violent
crime convictions.The investigation was conducted by the Berwick and Kittery Police Departments and the
Federal Bureau of Investigation.San Juan Island Man who Falsely Tried to Collect Disability Benefits Sentenced to Prison for Conspiracy, Mail Fraud & False StatementsRead the Press Release
The former owner of a San Juan Island coffee shop named “Criminal Coffee,” was sentenced today in U.S. District Court in Seattle to15 months in prison for conspiracy, mail fraud and making false statements, announced U.S. Attorney Jenny A. Durkan. The defendant was also ordered to pay full restitution of $42,088 and to pay a $10,000 fine. CORY MICHAEL EGLASH, 52, was found guilty of a scheme to defraud the Social Security Disability program following a four-day jury trial in January 2014. EGLASH’s long-time girlfriend Ramona Hayes, 41, was also charged in the case. She pleaded guilty prior to trial and was sentenced to one year in prison in February 2014. At sentencing U.S. District Judge Ricardo S. Martinez noted that EGLASH had resources –money, family and education – but demonstrated “nothing but the utmost selfish type of behavior… stealing from the destitute… those unable to work.”
According to filings in the case and testimony at trial, both EGLASH and Hayes filed claims with the Social Security Administration stating they were disabled and unable to work. In addition to his own application, EGLASH made statements as verification for Hayes’s disability claim. Hayes’s application, filed in early 2011, claimed she was unable to deal with the public and could not venture outside. EGLASH’s application, filed in November 2011, stated that he was so disabled that he was “almost home-bound,” and could not work or play sports. The investigation by the Social Security Administration Office of Inspector General revealed that both EGLASH and Hayes worked at the coffee shop they owned, and that EGLASH also earned $17 an hour working at a public aquarium on San Juan Island. In fact, in the same week that he submitted his application saying he could not be physically active, he participated in two full-court pick-up basketball games at the community center. At trial, prosecutors showed videos of EGLASH and Hayes working at the ‘Criminal Coffee’ shop. The videos were drawn from video surveillance conducted by undercover agents.
EGLASH’s application was identified as fraudulent by a caseworker before his benefits were approved. Hayes wrongfully collected more than $42,000 before the fraud was detected.
The case was investigated by the Social Security Office of Inspector General (SSA-OIG) Cooperative Disability Investigation Unit and was prosecuted by Special Assistant United States Attorney Seth Wilkinson and Assistant United States Attorney Thomas Woods. Mr. Wilkinson prosecutes Social Security fraud cases in federal court as part of a partnership between the United States Attorney’s Office and the Social Security Administration Office of the General Counsel.San Antonio Man and Woman Sentenced to Federal Prison for Aiding in the Exportation of Firearms from the United StatesRead the Press Release
In Del Rio this afternoon, United States District Judge Alia Moses sentenced 41-year-old CARLO LEE REYES (aka “El Raton”) to 240 months in federal prison, and 39-year-old ALICIA CASTANEDA (aka “Alicia Palomo”) to 33 months in federal prison announced Robert Pitman, United States Attorney for the Western District of Texas, Homeland Security Investigations (HSI) Special Agent in Charge Janice Ayala, and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent Robert Elder, Houston Division.
A jury in Del Rio convicted Reyes on October 3, 2013, of aiding the attempted exportation of firearms from the United States and being a felon in possession of an assault rifle-style firearm. In addition to the prison term, Judge Moses ordered that Carlo Lee Reyes pay a $5,000 fine and be placed under supervised release for a period of three years after completing his prison term. Castaneda pled guilty to aiding the attempted exportation of firearms from the U.S. Judge Moses imposed a supervised release period of three years on Castaneda.
Reyes, who was found guilty for his role in acquiring, paying for, storing, and transporting weapons, is the last defendant to be sentenced as part of Operation Iron Justice, a wide-ranging investigation led by HSI into the exportation of firearms from the United States into Mexico. Reyes would enlist others to locate firearms in San Antonio, and then coordinate through intermediaries to pick up the firearms and move them to a stash house. From there, others would arrange to pick up the firearms and transport them to Eagle Pass, for ultimate export to the traffickers in Mexico.
Operation Iron Justice, initiated by HSI Eagle Pass in early 2011, targeted several weapons trafficking
organizations believed to be acquiring firearms for the “Los Zetas” drug trafficking organization. The firearms, including weapons, ammunition, and assault rifle magazines, were to be smuggled to the Zetas operating in the Piedras Negras, Mexico, area, for protection against rival cartels, the Mexican military, and law enforcement.
The investigation identified several smuggling cells operating in the U.S. Using a number of investigative
techniques, agents obtained evidence of the firearm trafficking, including the identification of various
individuals involved in the trafficking, the interdiction and seizure of large numbers of firearms, rounds of
ammunition, and currency, as well as quantities of cocaine and marijuana. The investigation included the
seizure of 15 assault rifles and 518 rifle magazines in September 2011; the seizure of 11 assault rifles and 15
magazines in October 2011; the seizure of $109,545.00 in U.S. currency near Falfurrias, Texas, in October 2011; and the arrest of Richard Hesles, Jr., and his brother, Damian Hesles, owners of Hesles Gun and Knife Store in Eagle Pass, who were responsible for aiding and abetting or attempting the exportation of .50 caliber firearms, ammunition, magazines, and firearm sights to Mexico. All told, Operation Iron Justice resulted in over 50 arrests from indictments brought in the Western District of Texas, the seizure of 63,742 rounds of ammunition, 4,031 magazines, 220 assault rifles, $1,079,834.95 U.S. currency, 35 pounds of cocaine, 173 pounds of marijuana, and 18 vehicles.
The defendants convicted and sentenced in connection with Operation Iron Justice are as follows:DEFENDANT
PLEA or FOUND GUILTY
at TRIAL DATESENTENCING DATE/
SENTENCE1. Evelyn GUJARDO‐Campos
10/07/2010
07/3/2012: 26 months
12/02/2010
02/7/2010: 63 months
3. Michael Jonathan ROGERS
03/23/2011
11/28/2011: 30 months
4. Robert Lee PEREZ
08/25/2011
05/16/2012: 30 months
5. Armando LOPEZ
08/25/2011
02/15/2012: 63 months
6. Luis Alfredo SALINAS
12/21/2011
06/26/2012: 72 months
7. Rogelio Velarde MARTINEZ III
11/16/2011
11/05/2012: 48 months
8. Alfredo SALAZAR
12/21/2011
01/09/2013: 36 months
9. Shane Vernon STULL
09/22/2011
02/17/2012: 13 months
10. Janie LUNA
11/22/2011
04/23/2012: 24 months
11. Shiloh Nathaniel MORENO
11/03/2011
04/09/2012: 18 months
12. Mayra GARCIA‐Gonzalez
03/07/2012
06/04/2012: 46 months
13. Guadalupe Catalina VASQUEZ
03/28/2012
11/06/2012: 63 months
14. Enrique DELARA
03/08/2012
08/28/2012: 100 months
15. Vanessa MEDINA‐Velasco
04/24/2012
08/27/2012: 70 months
16. Victor CASTRO
01/19/2012
06/11/2012: 48 months
17. Jimena Prisilla GUERRERO
04/19/2012
02/04/2013: 37 months
18. Luis Bernardo ALBA
02/08/2012
06/26/2012: 37 months
19. Lisa Marie OLIVAREZ‐Vasquez
09/27/2012
02/04/2014: 52 months
20. Jose Angel MARTINEZ
06/28/2012
02/05/2013: 51 months
21. Roberto Frederico ESQUIVEL
03/28/2012
10/19/2012: 84 months
22. William TORRES‐Cordoba
04/19/2012
10/10/2012: 84 months
23. Sergio GUTIERREZ‐Vasquez
06/28/2012
02/06/2014: 48 months
24. Jose Roberto HERNANDEZ
03/08/2012
04/09/2014: 30 months
25. Salvador MONTENEGRO
09/27/2012
08/07/2013: 71 months
26. Jose NEGRETE‐Rodriguez
06/07/2012
10/25/2012: 46 months
27. Raul MONTENEGRO
05/03/2012
12/12/2012: 24 months
28. Favian RAMIREZ
03/28/2012
08/27/2012: 24 months
29. Francisco Chavarria TAMAYO
07/05/2012
07/25/2013: 12 months
30. Santiago Aurelio MARTINEZ
07/12/2012
12/17/2012: 46 months
31. Arturo CASTILLO‐Martinez
05/24/2012
10/25/2012: 36 months
32. Raul VASQUEZ‐Hinojosa
05/22/2012
10/15/2012: 33 months
33. Ramona ORTIZ
05/22/2012
10/15/2012: 30 months
34. Henris Osmar MERCADO
06/28/2012
11/26/2012: 63 months
35. Rene LARA
05/24/2012
09/26/2012: 96 months
36. Juan LOPEZ Jr.
09/06/2012
02/12/2014: 46 months
37. Hugo RAMIREZ‐Zapata
07/19/2012
07/29/2013: 57 months
38. Johnnie SANTOS
10/17/2012
04/09/2014: 33 months
39. Araceli TREVINO‐Rodriguez
07/05/2012
02/14/2013: 60 months
40. Damien HESLES
10/25/2012
01/28/2014: 110 months
41. Richard HESLES Jr.
10/25/2012
01/28/2014: 120 months
42. Carlo Lee REYES
10/03/2013
06/30/2014: 240 months
43. Alicia CASTANEDA
09/17/2012
06/30/2014: 33 months
44. Ismael HERNANDEZ‐Reyes
10/17/2012
04/24/2013: 37 months
45. Rolando TAMAYO
At‐Large, Failed To Appear
Fugitive
46. Erik Alan GARZA
04/25/2013
01/17/2014: 44 months
“HSI is committed to working with our state and federal law enforcement partners to dismantle and disrupt any illicit scheme involving the illegal exportation of firearms,” said Janice Ayala, Special Agent-in-Charge, HSI San Antonio. “Keeping these items out of the hands of violent cartels is a top priority for HSI.”
This case was investigated by agents with Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Customs and Border Protection, Texas Department of Public Safety, Bexar County Sheriff’s Department, Maverick County Sheriff’s Department, and the San Antonio Police Department.
Assistant United States Attorneys Michael Galdo and Bryan N. Reeves prosecuted this case on behalf of the Government.An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Rockville Man Sentenced to over 6 Years in Prison for Distribution of Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Michael Gaskin, age 33, of Rockville, Maryland, today to 78 months in prison, followed by 15 years of supervised release, for distribution of child pornography. Judge Grimm ordered that upon his release from prison, Gaskin must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).The sentence 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 Gaskin’s plea agreement, on 10 occasions between December 2012 and September 2012, Gaskin sent images documenting the sexual abuse of prepubescent children, including toddlers, to an individual whom Gaskin had met online in a chat room. On December 2, 2013, a search was conducted at Gaskin’s residence and his computer was seized. A forensic analysis of the computer identified 262 images and two videos documenting the sexual abuse of minors.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section and Trial Attorney Sarah Chang, also of the U.S. Department of Justice, Criminal Division, Child Exploitation and Obscenity Section, who prosecuted the case.
Rochester Man Sentenced on Drug Trafficking ChargesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jarrel Johnson, 30, of Rochester, N.Y., who was convicted of conspiracy to possess with the intent to distribute and distribution of 280 grams or more of cocaine base, was sentenced to 20 years in prison and 10 years supervised release by U.S. District Court Judge Charles J. Siragusa. The defendant was also sentenced to two years in prison to run concurrent to the 20 year sentence for violating an order of supervised release.
Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that on December 17, 2012, members of the United States Probation Office conducted a search of Johnson’s residence at 184 Kingsberry Drive, Apartment A, in Rochester. The defendant was under the supervision of a probation officer following a 2009 federal conviction for being a felon in possession of a firearm.
During the search of the apartment, several items of contraband and evidence of narcotics trafficking were found and seized, including a bag with crack cocaine, a digital scale with white residue, two boxes of rubber gloves, numerous small clear plastic bags, and a razor blade with white residue. In addition, law enforcement officers found and seized five clear plastic bags containing crack cocaine in two jackets belonging to Johnson and $4,400 in United States currency in a pair of the defendant’s boots.
The sentencing is the culmination of an investigation on the part of Greater Rochester Area Narcotics Enforcement Team composed of law enforcement personnel in Monroe County, under the direction under the direction of Rochester Police Department Chief Michael Ciminelli, the United States Probation Office, for the Western District of New York, Rochester Office, under the direction of Timothy Englerth and Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, New York Field Office.Rhode Island Resident Sentenced to 50 Months in Federal Prison for Trafficking Counterfeit Sports Jerseys, Clothing, Health and Beauty ProductsRead the Press Release
PROVIDENCE, R.I. – Norman Cipriano, 41, of Warwick, R.I., was sentenced on Thursday to 50 months in federal prison for trafficking more 14,500 counterfeit sports jerseys, clothing accessories, and health and beauty products valued at more than $1 million dollars, announced United States Attorney Peter F. Neronha, Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations (HSI), and Warwick Police Chief Colonel Stephen M. McCartney.
U.S. District Court Chief Judge William E. Smith also ordered Cipriano to serve 3 years of supervised release upon completion of his prison term. An amount of restitution to be paid by the defendant to various companies impacted in this matter will be determined at a later date. Cipriano pleaded guilty on August 5, 2013, to trafficking in counterfeit goods and services.
“The world-wide theft of intellectual property and the sale of counterfeit goods is, unfortunately, a burgeoning and increasingly dangerous crime. The distribution of counterfeit medications, both over-the-counter, as in this case, and prescription narcotics, as in other cases we have seen, present an obvious health and safety threat. Trafficking in other counterfeit goods, such as apparel and other consumer products, may seem more innocuous, but nevertheless demands the same aggressive attention from law enforcement. Such criminal misconduct causes irreparable economic harm to the companies that make the real article, including such companies’ ability to maintain and create jobs for every-day Americans,” said United States Attorney Peter F. Neronha.
United States Attorney Neronha added, “I am grateful for the vigilance of the Customs and Border Protection agents in Alaska who first recognized the defendant’s attempt to bring counterfeit and illegitimate items to our shores. HSI agents in Rhode Island, working with Warwick Police Detectives and Officers and other federal, state and local law enforcement officials, took it from there, building a strong case that ultimately led to today’s entirely appropriate sentence.”
“The notion that counterfeit products are a victimless crime is absurd. Criminals who sell counterfeit goods are economic leeches that siphon trade from legitimate businesses that pay taxes, create jobs and support our local economy," said Eric Caron, Resident Agent in Charge of HSI Providence."Buying them may appear at first to be a bargain, but when we take into account the common nexus to organized crime or worse, the laborers who may be forced to work in substandard conditions, and the locally owned stores that are forced to close their doors, we see that this ‘victimless crime’ harms all of us in the long run.”
According to information presented to the court, HSI agents in Rhode Island were notified that Customs and Border Protection (CBP) agents in Anchorage, Alaska, conducted a routine border search of a package arriving from the People’s Republic of China addressed to Cipriano and his Warwick residence. The shipment was manifested as “Man Coats.” An examination of the contents revealed sports jerseys affixed with NFL Football and Nike trademarked logos. CBP agents suspected that the display of trademarks was unauthorized.
CBP agents shipped the package to HSI agents in Rhode Island who conducted a controlled delivery of the merchandise to Cipriano’s residence on August 23, 2012, with the assistance of the HSI Boston Gangs/Commercial Fraud Unit and Warwick Police.
Simultaneously, working in conjunction with HSI agents from Boston who had already begun an investigation into Cipriano’s alleged importation and sale of counterfeit merchandise at a flea market in Raynham, Mass., continued the investigation which included multiple visits and surveillance of Cipriano’s activities at the flea market and at his home.
On September 19, 2012, HSI agents from Rhode Island and Boston, assisted by agents and officers from the United States Postal Inspection Service and the Warwick Police Department, executed a court authorized search of Cipriano’s home and two vehicles used to transport the counterfeit goods. The agents seized nearly 5,000 counterfeit sports jerseys, wearing apparel and accessories, and health and beauty aids - including a significant quantity of counterfeit over-the-counter medications. In total, agents seized approximately 14,700 counterfeit items conservatively valued at more than $1.02 million dollars and nearly $56,000 in cash, money orders and a bank check. The following day the government seized a bank account containing more than $76,000 which belonged to Cipriano.
Queries of CBP data bases disclosed that between September 2009 and June 2012 CBP agents made numerous seizures of counterfeit goods imported into the United States earmarked for shipment to Cipriano’s Rhode Island residence. After each seizure, seizure notices were sent notifying Cipriano of the seizure and provided the opportunity to contest the seizure. None were contested.
In October 2012, as a result of his arrest by federal agents for this crime, Cipriano was found to be a probation violator on a 2005 conviction in Rhode Island state court for conspiracy and receiving stolen property. Cipriano served 22 months in state prison on the violation while this matter was pending in federal court.
The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
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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]Portsmouth Man Sentenced for His Participation in Bank FraudRead the Press Release
NEWPORT NEWS, Va. – Dominique Avery, 20, of Portsmouth, Va., was sentenced today to eight-seven months in prison and ordered to pay in excess of $197,000 in restitution, for his participation in a conspiracy to commit bank fraud and aggravated identity theft.
Dana J. Boente, United States Attorney for the Eastern District of Virginia made the announcement after sentencing by United States District Judge Arenda Wright Allen.
According to court documents, Avery was involved in a yearlong conspiracy targeting at least five financial institutions, including ABNB Federal Credit Union and Navy Federal Credit Union, and over two dozen individuals and businesses. The defendant and others stole and/or purchased identities and applied for checking and savings accounts via online portals with minimal amounts. The conspirators then caused a third party check issuing service to send dozens of fraudulent checks to various vendors and individuals. Avery was arrested in August, 2012, while attempting to purchase two vehicles with fraudulent ABNB checks. The total intended losses exceed $737,000.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
This case was investigated by the United States Secret Service and the United States Postal Inspectors Service. Assistant United States Attorney Brian J. Samuels prosecuted the case on behalf of the United States.Pleasant Grove Woman Indicted for Filing False Tax ReturnsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment yesterday against Jacquline Hoegel, 57, of Pleasant Grove, CA, charging her with making and subscribing false tax returns, United States Attorney Benjamin B. Wagner announced.
According to the indictment, Hoegel filed her personal income tax returns for the years 2005, 2006, 2007, and 2008 on the same day in September 2009. Those returns substantially understated her gross receipts and falsely stated that she was a graphic designer during the relevant tax years.
This case is the product of an investigation by the Internal Revenue Service-Criminal Investigations. Special Assistant United States Attorneys Benjamin Kingsley and Robin Harris are prosecuting the case.
The defendant, who is not in custody, is expected to appear on July 17, 2014, at 2:00 pm for her arraignment in federal court before Magistrate Judge Carolyn K. Delaney.
If convicted, Hoegel faces a maximum statutory penalty of up to three years in prison and a $100,000 fine on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Pittsburg Resident Charged in Tax Fraud SchemeRead the Press Release
OAKLAND – Charles S. Moore, was charged with 17 counts of aiding and assisting in the preparation and filing of false tax returns, announced U.S. Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
According to the Indictment filed on Jan. 14, 2014, and unsealed today, between Feb. 5, 2011 and May 1, 2011, Moore willfully prepared and presented to the IRS, 17 tax returns, Forms 1040 EZ, for various taxpayers for the tax years 2007, 2008, 2009 and 2010. The tax returns were false and fraudulent with respect to the wages reported on each of the tax returns.
Moore, of Pittsburg, was arrested yesterday and made his initial appearance this morning before the Honorable Kandis A. Westmore, United States Magistrate Court Judge. Moore’s next court appearance is on July 18, 2014, at 9:30 a.m., before the Honorable Jon S. Tigar, District Court Judge in Oakland.
The maximum penalty for aiding and assisting in the preparation of false tax returns, in violation of Title 26, U.S.C § 7206(2) is three years in prison and a fine of $250,000.
Assistant U.S. Attorney Thomas Moore is prosecuting the case. The prosecution is the result of an investigation by the IRS, Criminal Investigation.
(Moore indictment )
Parker County, Texas, Man Pleads Guilty to Federal Kidnapping ChargeRead the Press Release
FORT WORTH, Texas — The Justice Department’s Civil Rights Division, the U.S. Attorney’s Office of the Northern District of Texas, and the FBI Dallas Division announced that Brice Johnson, 19, of Springtown, Texas, pleaded guilty today in federal court to kidnapping a young gay man after inviting the victim to his home and brutally assaulting him.
Johnson admitted in plea documents that in the early morning hours of Sept. 2, 2013, he connected with the adult male victim, identified as A.K., through the cell phone application for MeetMe.com. A.K.’s MeetMe.com page indicated he was a gay man, while Johnson’s web page indicated he was not gay. During their chat communications, Johnson said that he was interested in engaging in sexual activity with A.K. He invited A.K. to his home, gave A.K. his cell phone number and address, and they exchanged text messages planning their sexual encounter. Just a few minutes after A.K. arrived at the house, Johnson severely beat him and bound A.K.’s wrists with an electrical cord. Johnson then locked the victim into the trunk of his own car and drove the car to a family friend’s house. Individuals at the home repeatedly warned Johnson that they would call the police if he didn’t take A.K. to the hospital. Johnson eventually transported A.K. to an Emergency Medical Services (EMS) station in Springtown.
A.K. suffered multiple skull and facial fractures from the beating, causing him to be hospitalized for ten days at Harris Methodist Hospital in Fort Worth. Johnson admitted that he saved A.K.’s cell phone number using a gay slur as a contact name.
During the plea hearing this morning, before U.S. District Judge Reed C. O’Connor, Johnson admitted that he held and confined the victim against his will in order to conceal the violent assault and to remove A.K’s severely injured body from the home where Johnson was a long-term houseguest.
Sentencing has been set for Nov. 17, 2014. Johnson faces a maximum statutory penalty of up to life in prison and a $250,000 fine
“This was a senseless act of brutal violence that has no place in a civilized society,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “We are hopeful that today’s guilty plea brings some sense of justice for the victim and makes clear that the Department of Justice is committed to using every tool available to vindicate the rights of victims of violent crimes. The department will continue to work with our state, local and federal law enforcement partners to vigorously investigate hate crimes allegations throughout the country.”
“Violent crimes of this nature will not be tolerated, and I commend the victim for his continued cooperation in the investigation and prosecution of this reprehensible conduct,” said U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
“The FBI is committed to thoroughly investigating violent crimes of this nature, and will continue to work with our local and state law enforcement partners to ensure justice for victims of these crimes,” said Diego Rodriguez, Special Agent in Charge of FBI Dallas Division.
The investigation is being conducted by the FBI, the Springtown Police Department and the Parker County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Cara Foos Pierce and Trial Attorney Saeed Mody of the Civil Rights Division.
Park Heights Store Owner Sentenced to Prison for Food Stamp FraudRead the Press Release
Defendant Obtained Over $400,000 in Payments for Food Sales That Never Occurred
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Jung Kim, age 52, of Ellicott City, Maryland, to 20 months in prison followed by three years of supervised release, for food stamp and wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. Judge Russell also entered an order that Kim forfeit $95,453.50 and pay restitution of $205,000.The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture’s Office of Inspector General, Northeast Region; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Jung Kim owned and operated C&C Market, a convenience store located at 4752 Park Heights Avenue in Baltimore. According to her plea agreement and court documents, the store participated in the Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Jung Kim completed the required government form in January, 2005 to become an authorized retailer in the program. Kim received training and instruction regarding the requirements of the food stamp program, including that it was a violation of SNAP regulations to trade cash for SNAP benefits. Nevertheless, from November 2010 through April 2013, Kim routinely exchanged SNAP benefits for cash at less than face value of the EBT benefits, in violation of the food stamp program rules, and kept up to 50 percent of the benefits for herself.
As a result of these unlawful cash transactions, Kim obtained more than $400,000 in payments for food sales that never occurred.
Eight of the 10 convenience store owners or operators who were indicted in September 2013 in connection with schemes to illegally redeem food stamp benefits in exchange for cash have pleaded guilty to food stamp fraud and/or wire fraud. Ahmed Ayedh Al-Jabrati, age 58, a citizen of Yemen residing in Baltimore, was sentenced to two years in prison, and ordered to pay restitution of $1.2 million. Amara Cisse, age 50, of Windsor Mill, Maryland, was sentenced to 27 months in prison and ordered to pay restitution of $654,349.24, and his wife, Fanta Keita was sentenced to two months in prison. John Cunningham, age 55, of Baltimore, was sentenced to two years in prison. Retailer Hyung Cho, age 40, was sentenced to 38 months in prison, and his mother Dae Cho, age 67, was sentenced to 18 months in prison. The Chos were also ordered to forfeit $371,439.21 and pay restitution of $1.4 million. Two more retailers were indicted in January 2014.
United States Attorney Rod J. Rosenstein praised USDA’s Office of Inspector General and FBI for their work in the investigation. U.S. Attorney Rosenstein expressed appreciation to Secretary Ted Dallas and the Maryland Department of Human Resources, as well as U.S. Citizenship and Immigration Services - Office of Fraud Detection and National Security for their assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Judson T. Mihok, Kathleen O. Gavin, and Leo J. Wise, who are prosecuting the cases.
Owners of Two Houston-Area Home Health Care Companies, Doctor, and Hospital Employee Sentenced for Their Roles in $3 Million Medicare Fraud SchemeRead the Press Release
Owners of two home health agencies, a doctor, and a hospital employee who sold patient information were all sentenced today for their roles in an $3 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Cardwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson for the Southern District of Texas, Special Agent in Charge Stephen L. Morris of the FBI’s Houston Field Office, Special Agent in Charge Mike Fields of the Dallas Regional Office of HHS’s Office of the Inspector General (HHS-OIG), and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Valnita Turner, 48, Valdie Jackson, 43, Dr. Nick Patzakis, 86, and Jarvis Thomas, 40, were all sentenced today by U.S. District Judge Gray Miller in the Southern District of Texas.
On October 7, 2013, Valnita Turner, owner of Houston Compassionate Care, Inc., was convicted of one count of conspiracy to commit health care fraud and four counts of health care fraud. According to court documents, Turner and Valdie Jackson, owner of Jackson Home Healthcare, Inc., purchased stolen patient information from Jarvis Thomas, a hospital administrative employee. Turner and Jackson used the stolen patient information to submit fraudulent claims to Medicare for home health services purportedly provided by three home health agencies operating in the Houston area, Houston Compassionate Care, Inc., Jackson Home Healthcare, Inc., and Prestige Health Services, Inc.. Turner and Jackson also fraudulently billed Medicare for medically unnecessary home health services that were never ordered by a doctor and relied on doctors, including Dr. Nick Patzakis, to falsely sign medical documents.
Valnita Turner was sentenced to serve 151 months in prison. In addition to her prison term, Turner was sentenced to three years of supervised release and was ordered to pay $3,011,899.09 in restitution, jointly and severally with her co-defendants.
Valdie Jackson pleaded guilty to conspiracy to commit health care fraud on September 13, 2013. Jackson was sentenced to serve 12 months and one day in prison. In addition to his prison term, Jackson was sentenced to three years of supervised release and was ordered to pay $1,551,482.21 in restitution, jointly and severally with his co-defendants.
Dr. Nick Patzakis pleaded guilty to one count of false statements relating to health care matters on September 20, 2013. Dr. Patzakis was sentenced to time served and three years of supervised release. In addition, Dr. Patzakis was ordered to pay $95,947.57 in restitution, jointly and severally with his co-defendants.
Jarvis Thomas pleaded guilty to conspiracy to disclose individually identifiable health information on September 13, 2013. Thomas was sentenced to time served and three years of supervised release. Additionally, Thomas was ordered to pay $1,348,644.75 in restitution, jointly and severally with his co-defendants.
The case was prosecuted by Assistant Chief Robert Zink and Trial Attorneys Christopher Cestaro and Ashlee Caligone McFarlane of the Criminal Division’s Fraud Section. The case was investigated by the FBI, HHS-OIG and MFCU and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov .
Owner of Tampa Contracting Company Pleads Guilty to Paying Illegal Kickbacks for Fraudulent Training CertificatesRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Paul R. Pinet (67, Tampa) yesterday pleaded guilty to conspiracy to defraud the United States and to making false, fictitious, and fraudulent statements. Pinet faces a maximum penalty of five years in federal prison on the conspiracy charge. Barry Fitzgerald (62, Lakeland) pleaded guilty to the same charge in a related case on May 15, 2014.
According to the plea agreement, Pinet owned and operated Premier Corrosion Protection Services, Inc., a contracting company in Tampa that provided its contracting services to phosphate mines in Polk County and elsewhere. Fitzgerald was a Mine Safety and Health Administration (“MSHA”) approved safety instructor at a community college located in Polk County.
Federal law requires all miners, including those working in a surface mining operation, to receive training and instruction regarding various health and safety risks. New miners are required to take a 24-hour, newly-employed, inexperienced miner training course. Experienced miners are required to take an 8-hour refresher course each year. The training must be performed by an MSHA-approved training instructor and documented on MSHA Form 5000-23. Newly-employed inexperienced miner training is the mechanism by which miners receive their initial familiarization with the multitude of dangers inherent in the mining occupation, and their notification of their legal right to a safe working environment under the Mine Act.
From 2008 to at least July 2011, Pinet conspired with Fitzgerald and others to impede and impair MSHA’s administration and oversight of the Federal Mine Health and Safety Act and conspired to make false and fraudulent training certificates. As part of this conspiracy, Pinet purchased and caused the purchase of falsified training certificates (MSHA Forms 5000-23) from Fitzgerald for both the company’s new and experienced miners. The certificates were used by the company to make it appear as if its employees were properly trained, but in truth, Fitzgerald did not perform any MSHA training for the individuals named on the falsified certificates. Pinet obtained false and fraudulent training certificates in this manner for himself and other company employees. The company used these untrained workers to perform work at various phosphate mines in Polk County, including the Four Corners Mine.
In exchange for providing false and fraudulent training certificates, Pinet paid a kickback to Fitzgerald. The kickbacks were paid in cash or a check from the company made payable to cash. Pinet paid Fitzgerald $100 and later $125 per falsified training form. In addition to cash payments, Pinet caused at least $4,350 in checks to be paid to Fitzgerald between March 2009 and July 2011.
Joseph A. Main, Assistant Secretary of Labor for Mine Safety and Health, stated: "Miner training is a critical element in assuring a safe work place and preventing injuries, illnesses, and death. Those individuals who falsify miner training certificates put miners at risk and will be prosecuted to the full extent permitted by law."
This case was investigated by the Federal Bureau of Investigation and the United States Department of Labor, Mine Safety and Health Administration. It is being prosecuted by Assistant United States Attorney Matthew J. Mueller.
One Year After Supreme Court’s Historic Windsor Decision, Attorney General Holder Issues Report Outlining Obama Administration’s Work to Extend Federal Benefits to Same-sex Married CouplesRead the Press Release
Following the Supreme Court’s historic decision striking down Section 3 of the Defense of Marriage Act, Attorney General Eric Holder on Friday issued a formal report on the yearlong effort by the Justice Department and other federal agencies to implement the decision smoothly across the entire government.
“I am pleased to report that agencies across the federal government have implemented the Windsor decision to treat married same-sex couples the same as married opposite-sex couples for the benefits and obligations for which marriage is relevant, to the greatest extent possible under the law," Attorney General Holder wrote in the memorandum to President Obama. “The implementation of the Windsor decision across the entire federal government is an accomplishment that reflects countless hours of hard work, cooperation, and coordination across agencies. As additional issues arise, we will continue to work together to uphold this Administration’s fundamental commitment to equal treatment for all Americans, and to extend this fundamental equality to all Americans.”At the President’s direction last year, a team of lawyers—led by Assistant Attorney General for the Civil Division Stuart Delery—began working with lawyers for other federal agencies to seek to extend federal benefits to same-sex marries couples, consistent with the Windsor decision. The department and the agencies have made many announcements on a rolling basis over the last several months. To date, for instance, the administration has announced that same-sex marriages will be recognized for all federal tax purposes, that health insurance and retirement benefits are available for same-sex spouses of all federal employees, and that the Defense Department will provide spousal benefits for same-sex spouses of military servicemembers.
In conferring these and other benefits, agencies have chosen to recognize marriages as valid based on the law of the jurisdiction where the marriage took place (the place of celebration), regardless of where the couple currently resides. As noted in the Attorney General’s report, however, two agencies—the Social Security Administration and Department of Veterans Affairs (VA)—are prohibited by federal statute from adopting a “place of celebration” rule for certain programs of critical importance to millions of Americans. The administration looks forward to working with Congress to fix these parts of the law to ensure that Americans who rely on these programs can obtain these essential benefits no matter where they live.
In the meantime, both the VA and Social Security Administration have sought to extend benefits to the absolute maximum extent, seeking out all legally available authority. As a result, for instance, the administration is able to announce today that the VA Acting Secretary has determined that he will exercise his broad statutory discretion in the area of burial benefits to designate any individual in a committed relationship for burial in a national cemetery, which will allow for the inclusion of same-sex spouses where the domicile provision would otherwise govern. In addition, SSA will extend survivor benefits, lump sum death benefits and aged spouse benefits to same-sex couples if one partner could inherit from the other partner on the same terms as a spouse under state law. This expands the number of states in which these benefits can be extended.
A full copy of the Attorney General’s report to the President is attached.
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Old Orchard Beach Man Pleads Guilty to Pharmacy RobberyRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Kyle
Desmarais, 33, of Old Orchard Beach, Maine, pled guilty today in U.S. District Court before
Judge Nancy Torresen to aiding and abetting pharmacy robbery.According to court records and evidence introduced at the plea hearing, on February 13,
2014, Desmarais drove Billy Schildroth to a Rite Aid pharmacy located in Old Orchard Beach,
so that Schildroth could rob the pharmacy. Schildroth absconded with Oxycontin (oxycodone)
and Suboxone (buprenorphine) after putting his hand inside his coat and telling the pharmacist
that he had “a gun and five bullets” and not to alert anyone or he would shoot the pharmacist in
the face. After the robbery, Desmarais drove Schildroth away knowing that he had committed the robbery.On June 3, 2014, Schildroth was indicted for the pharmacy robbery and awaits trial. An
indictment is merely an accusation and a defendant is presumed to be innocent unless proven
guilty in a court of law.
Desmarais faces up to 20 years in prison and a $250,000 fine. He will be sentenced after
completion of a presentence investigation report by the U.S. Probation Office.The investigation was conducted by the Federal Bureau of Investigation and the Old
Orchard Beach Police Department.O.C. Man Convicted in Scams That Caused over $3 Million in Losses with False Promises of Products That Treated Common AilmentsRead the Press Release
SANTA ANA, California – An Irvine man was found guilty today of running a fraud scheme that raised about $3.3 million from victims who thought they were investing in products that would treat childhood obesity and Type II diabetes.
Charles “Chuck” Davis, 57, was found guilty today of two counts of mail fraud, seven counts of wire fraud and four counts of money laundering
The evidence presented during a seven-day trial showed that Davis operated an investment scam involving the Newport Beach-based LifeRight Holdings, Inc. According to promises made by Davis, LifeRight was going to develop and use infomercials to market a product to combat child obesity. Davis promised investors a 15 percent return in only 13 months, as well as royalties on products sold and an option to convert the investment into shares of LifeRight stock when the company began selling product.
But investor funds – more than $2.4 million raised from about 40 victims in 2007 and 2008 – were actually used to fund Davis’ personal expenses and legal fees in lawsuits brought against him.
The second scheme involved a company called DT2, which purportedly offered a product to treat Type II diabetes. From 2009 to 2011, Davis raised more than $900,000 from about 25 DT2 investors. Similar to the LifeRight scam, Davis diverted the investor funds to other companies and, instead of spending the money on DT2 business, Davis used the money to pay for high-end restaurants, expenses sustained by several girlfriends, spa treatments, cash withdrawals, and his civil and criminal defense attorneys.
As a result of being convicted of the 13 felony counts, Davis faces a statutory maximum sentence of 240 years in federal prison when he is sentenced by United States District Judge Andrew Guilford on October 20.
Davis has been in custody since September 2011.
The case against Davis was investigated by the Federal Bureau of Investigation.
Release No. 14-078
New Haven Man Sentenced to 14 Years in Federal Prison for Distributing Cocaine, Crack Cocaine and OxycodoneRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MICHAEL THOMPSON, 35, of New Haven, was sentenced yesterday by Senior U.S. District Judge Ellen Bree Burns in New Haven to 168 months of imprisonment, followed by five years of supervised release, for distributing cocaine, crack cocaine and oxycodone.
THOMPSON is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms.
On December 6, 2013, a jury found THOMPSON guilty of one count of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, 280 grams or more of cocaine base (“crack cocaine”), and a quantity of oxycodone.
According to the evidence at trial, THOMPSON received kilogram quantities of cocaine from suppliers, including co-defendant Christopher “White Boy Chris” Morley, which THOMPSON converted into crack cocaine and then sold to other narcotics distributors and customers. Morley also provided THOMPSON with quantities of oxycodone, which THOMPSON redistributed to others. At times, THOMPSON supplied powder cocaine to Morley.
THOMPSON’s criminal history includes at least nine prior felony convictions.
Morley pleaded guilty and awaits sentencing.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys S. Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Benefit Fraud Arrests in Sutter CountyRead the Press Release
YUBA CITY, Calif. — An ongoing investigation into an unemployment and disability benefits fraud scheme has led to the indictment and arrest of four Sutter County residents for their participation in the scheme and a superseding indictment bringing additional charges against others previously named as defendants, announced United States Attorney Benjamin B. Wagner, U.S. Department of Labor, Office of Inspector General Special Agent in Charge Abel Salinas, FBI Special Agent in Charge Monica M. Miller, and Employment Development Department Investigation Division Chief Lisa Schmith.
The Sutter County-based scheme used farm labor contracting companies to sell false paystubs that indicated the purchasers had been employed by the companies when it fact they had not. These fraudulent paystubs enabled the purchasers to apply for unemployment and disability benefits to which they were not entitled. The fraud scheme is alleged to have defrauded the California Employment Development Department of more than $14 million.
The federal grand jury returned a superseding indictment yesterday that expands the original charges brought in 2012 against six defendants. The grand jury also returned a new indictment charging one of those defendants and another man with starting a new scheme to sell false wages. Two new defendants were also charged in that indictment with committing perjury before the investigating federal grand jury.
The superseding indictment charges that Mohammad Nawaz Khan, 56; Mohammad Adnan Khan, 31; Iqila Begum Khan, 31, all of Live Oak; and Mohammad Shahbaz Khan 56, of Yuba City, controlled a series of companies that were reported to the Employment Development Department as farm labor contractors. The Khans, together with Gurdev Kaur Johl, 69, and Kewal Singh, 76, both of Yuba City, who were also charged, sold fake paystubs to other people in the community and used the companies they controlled to report false wages for the individuals who purchased those paystubs. According to the superseding indictment, the Khans at times instructed the purchasers how the fake paystubs could be used to fraudulently claim unemployment and disability benefits. Over the course of the conspiracy, which allegedly began in the early 1990s, the defendants reported false wages for more than 1,000 separate individuals that resulted in more than 2,000 fraudulent claims for unemployment and disability benefits.
The new indictment charges that while out on bond for the first indictment, Mohammad Shahbaz Khan began a new conspiracy with Mohammad Riaz Khan, aka Ray Khan, 53, of Live Oak, to commit unemployment and disability fraud. It is alleged in the indictment that Mohammad Riaz Khan issued checks to his supposed employees and directed those individuals to cash the checks and return the money to him in order to make it appear that the individuals were actually being paid wages by Mohammad Riaz Khan. Also in that indictment, Harmit Chechi, 27, of Yuba City, and Harjit Johal, 47, of Yuba City, are charged with committing perjury before a federal grand jury in connection with that investigation. Mohammad Riaz Khan, Mohammad Shahbaz Khan, Chechi, and Johal were arrested this morning.
“The indictments returned yesterday allege that the defendants ran a scheme that ripped off the Employment Development Department for many years,” said U.S. Attorney Wagner. “Those responsible for this scheme are likely to end up in prison, and those who purchased false wages from them should come clean rather than try to conceal the scheme. Today, two people were arrested on charges of lying to the grand jury, and more people are under investigation for perjury. Obstructing a federal fraud investigation is unacceptable, and those who engage in such conduct will face the full weight of federal law enforcement.”
“Despite indictments of more than 20 individuals in 2012 and 2013, allegations of continued criminal activity persisted,” said Monica M. Miller, Special Agent in Charge of the Sacramento division of the FBI. "Continued, open contribution among EDD, DOL-OIG, and the U.S. Attorney’s office ensured a thorough and successful investigation, and we are thankful for the opportunity to work together to protect the integrity of government at all levels.”
“Any fraud against the employer-funded Unemployment Insurance Program or the employee-funded Disability Insurance Program is unacceptable,” said Patrick W. Henning, Jr., Director of the California Employment Development Department (EDD). “The EDD is committed to protecting these vital programs and working with our law enforcement partners to prosecute offenders to the fullest extent of the law. And we will soon become only the second state in the nation to employ the latest in technology and predictive analysis tools to identify new fraud trends and prevent benefit fraud.”
This latest indictment brings the total to 28 individuals who have been charged in this investigation. Thirteen have pleaded guilty to various charges. A status conference as to Mohammad Nawaz Khan et al. is schedule for June 26, 2014 at 9:00 a.m. before Chief U.S. District Judge Morrison C. England Jr. A jury trial is scheduled for January 12, 2015.
This case was the product of an investigation by the U.S. Department of Labor, Office of Inspector General; the Federal Bureau of Investigation; and the Employment Development Department-Criminal Investigations. Assistant United States Attorneys Jared C. Dolan and Sherry D. Hartel Haus are prosecuting the cases.
If convicted, each defendant faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count. Chechi and Johal face a maximum statutory penalty of five years in prison for perjury. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges in the indictments are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Monroe Man Pleads Guilty to Fraud and Tax OffensesRead the Press Release
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The United States Attorney for the District of Connecticut announced that ANTHONY TESTO, 66, of Monroe, pleaded guilty today before U.S. Magistrate Judge Donna F. Martinez in Hartford to fraud and tax charges stemming from a scheme to defraud a Bridgeport-based residential property owner. TESTO, the owner and president of ACT Builders, Inc., also entered a plea of guilty on behalf of his company.
According to court documents and statements made in court, ACT Builders, Inc. was contracted to serve as a property manager for an entity in Bridgeport that owned an apartment complex and several single and multi-family residences. TESTO’s role as property manager included filling vacant rental units, setting rental amounts, collecting security deposits, collecting rent from tenants and depositing rental payments in the property owner’s bank account. TESTO also was required to submit to the property owner a monthly “rent roll,” which was a spreadsheet showing the occupancy of the rental units, the rental amounts due and the rental payments collected from tenants.
From approximately January 2007 to August 2010, TESTO, ACT Builders and others schemed to defraud the property owner by submitting fraudulent rent rolls that misrepresented that certain rental units were vacant with no rent due when, in fact, the apartments were occupied and rent had been collected. The rent rolls also misrepresented that the rent due and collected for certain rental units was lower than the amount that was actually collected. TESTO deposited rental income that was due to the property owner into both his personal bank account and the ACT Builders bank account.
TESTO, who hired subcontractors to provide maintenance services for the property, also submitted fraudulent subcontractor invoices to the property owner.
TESTO defrauded the property owner of at least $275,000 through this scheme. He also failed to report this fraudulent income on his 2007 through 2010 personal federal income tax returns, resulting in a tax loss to the Internal Revenue Service of $71,795.
TESTO pleaded guilty to one count of conspiracy to commit wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of assisting in the preparation and filing of a false tax return, which carries a maximum term of imprisonment of three years. Act Builders pleaded guilty to one count of conspiracy to commit wire fraud, which carries a maximum term of probation of five years.
TESTO has agreed to pay full restitution to the victim property owner, as well as back taxes, plus penalties and interest.
TESTO and Act Builders are scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on September 2, 2014.
TESTO was arrested on March 13, 2014 and is currently released on a $500,000 bond.
This matter is being investigated by the Federal Bureau of Investigation, and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Felice Duffy.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Long Time Fugitive Arrested for Identity TheftRead the Press Release
United States Attorney Karen L. Loeffler, announced the arrest of Joseph Keenan May, 60, on identity theft charges. May, of Eagle River and Houston, Alaska, has been wanted for capital sexual battery in Brandenton, Florida, since 1991. He has been the subject of a federal warrant charging unlawful flight to avoid prosecution since 1993. According to the indictment, May has been living under the identity of a stepbrother, Michael Camp, who died in his teens in the 1970s in Pennsylvania. May is a former deputy sheriff in Manatee County, Florida. The indictment charges two counts of unlawful use of a social security number, stemming from May’s use of Camp’s name and number to apply for an Alaska driver’s license in 2009 and unemployment benefits in 2013. He is also charged with aggravated identity theft. May faces up to 12 years in prison on the federal charges in Alaska. He potentially faces the death penalty in Florida.
May was arrested by an FBI tactical team at a home in Eagle River in the early morning hours of Friday, June 20. May will be arraigned before a federal judge in Anchorage at 2:30 p.m. on Friday.
Ms. Loeffler commends the efforts of the Social Security Administration, Office of the Inspector General, and the Federal Bureau of Investigation (FBI), Anchorage Division for conducting the investigation that led to the Alaska indictment and arrest. Thanks are also due to the FBI Tampa Division, the United States Attorney’s Office for the Middle District of Florida, the State’s Attorney’s Office in Brandenton, Florida, and the Manatee County Sheriff’s Office.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Lincoln Man Sentenced for Receipt of Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Michael L. Nguyen, 27, of Lincoln, Nebraska, was sentenced on June 20, in Lincoln, Nebraska, to five years in prison by United States District Judge Joseph F. Bataillon for receipt of child pornography. After his release from prison, Nguyen will be required to serve a 5 year term of supervised release and be registered as a sex offender. Additionally, Nguyen is ordered to pay a total of $6,000 in restitution, to be divided among victims whose images were included in the numerous files located on Nguyen’s computers.
On February 12, 2013, an investigator was investigating computers sharing child pornography on the Internet. An IP address registered to Nguyen was identified as having files in violation of state and local law. Between February 12, 2013 and February 25, 2013, an investigator was able to make a direct connection to a computer at Nguyen's IP address and downloaded 5 five videos depicting sexually explicit conduct involving children under the age of 18 years old. On February 22, 2013, members of the Lincoln Police Department and Lancaster County Sheriff's Office executed a search warrant at Nguyen’s residence. Nguyen was contacted during the warrant and did admit that he downloaded and used file sharing software on his laptop. Investigators conducted a forensic preview of Nguyen's laptop computer and found numerous videos and images depicting sexually explicit conduct involving children under the age of 18 years old.
Forensic analysis of the company laptop computer used by Nguyen revealed over 2,339 images, including over 200 videos of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Lincoln Police Department.