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5 August 2014
Modesto Man Arrested for Defrauding Real Estate InvestorsRead the Press Release
FRESNO, Calif. — Xue Heu, 37, of Modesto, was arrested this morning following an indictment by a federal grand jury charging him with wire fraud in connection with a fraudulent real estate investment scheme, United States Attorney Benjamin B. Wagner announced.
According to the indictment, between August 2007 and October 2013, Heu solicited individuals to invest in real estate businesses that purchased and sold real estate. Heu claimed to be an officer of Liquid Assets & Land Investments Inc. and Capital Land Investments LLC. In furtherance of the scheme and to persuade the investors that the investment opportunities were legitimate, Heu gave investors fraudulent documents, such as forged and fictitious grant deeds, fraudulent HUD-1 settlement statements, and portfolio listings of properties he claimed he intended to purchase, including properties that had already been sold and were no longer available to purchase.
The indictment alleges that Heu did not use the investors’ money to purchase the properties as promised, and instead, he directed the money to his own accounts and used the money for other purposes. As a result of his conduct, Heu allegedly defrauded investors of more than $360,000.
This case is the product of an investigation by the Federal Bureau of Investigation and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Christopher Baker is prosecuting the case.
If convicted of the charges, Heu faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each of the eight counts of wire fraud. 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.
Mississippi Man Sentenced to Twenty-five Years in Federal Prison for Sexual Exploitation of ChildrenRead the Press Release
Jackson, Miss. - Gary Tubby, 53, a member of the Mississippi Band of Choctaw Indians, was sentenced today by U.S. District Judge Carlton W. Reeves, Jr. to 25 years in prison followed by a lifetime of supervised release for sexual exploitation of children, announced U.S. Attorney Gregory K. Davis, Acting FBI Special Agent in Charge Johnnie Sharp, and Mississippi Attorney General Jim Hood.
On several occasions, Tubby sexually molested two children, both of whom were under the age of twelve, and took sexually explicit photographs of the children. The photographs were then posted to a photo sharing website. The offense occurred on the Tribal lands of the Mississippi Band of Choctaw Indians.
U.S. Attorney Gregory K. Davis praised the investigative work of the FBI and the Mississippi Attorney General’s Child Exploitation Task Force for their investigation of this case, and Assistant U.S. Attorney Patrick Lemon who prosecuted the case.
Attorney General Jim Hood stated: “This case really highlights the benefits of our partnership with the FBI on the Child Exploitation Task Force and why we have dedicated resources to it. This defendant admitted to producing his own child porn and stated in court he had victimized other children in the past. We appreciate Judge Reeves for putting him away for many, many years to come and hope doing so can be the start of the healing process for the children who were victimized.”If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Mission Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Assaulting, Resisting, Opposing, and Impeding a Federal Officer was sentenced on July 28, 2014, by U.S. District Judge Roberto A. Lange.
John Willard Arcoren, III, a/k/a Smokey Arcoren, age 33, was sentenced to 16 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Arcoren was indicted for Assaulting, Resisting, Opposing, and Impeding a Federal Officer by a federal grand jury on February 12, 2014. He pled guilty on May 12, 2014.
The conviction stems from an incident that took place on January 11, 2014, when Arcoren assaulted a federal officer by bending and putting pressure on the officer’s arm and elbow while the officer was face down on the ground.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Arcoren was immediately turned over to the custody of the U.S. Marshals Service.
Miami Seafood Firm Pleads Guilty and Is Sentenced for Imported Seafood Labelling FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Tracy Dunn, Special Agent in Charge, National Oceanic and Atmospheric Administration (NOAA), Office of Law Enforcement, announce that the Miami-based seafood company True Nature Seafood, LLC (TNS), was sentenced in Miami on a one count information, which count charged the defendant with knowingly making and submitting a false record, account, or label for fish which had been or was intended to be imported, exported, transported, sold, purchased, in violation of the Lacey Act, Title 16, United States Code, Sections 3372(d)(1) and (2), 3373(d)(3)(A), and Title 18, United States Code, Section 2.
U.S. District Judge Ursula Ungaro, who accepted the guilty plea of TNS on Friday, August 1, 2014, also imposed the sentence in the case. TNS was sentenced to pay a fine of $500,000, community service payments of $500,000, placed on probation for a term of five years, ordered to implement an Environmental Compliance Plan as a special condition of probation, and ordered to forfeit proceeds in the sale of approximately 43,150.5 pounds of toothfish (Dissostichus Spp.) valued at $400,862.88, previously seized by NOAA.
According to a joint factual statement executed by the parties, statements in court and case-related records, TNS was engaged in the wholesale purchase, importation, processing, packaging, sale, and distribution of seafood products, in interstate and foreign commerce. These activities included transactions involving seafood product, which was imported, re-labelled, and transshipped from Miami to both domestic and foreign customers by and at the direction of the officers and agents of TNS, acting within the scope of their employment and for the benefit of TNS.
TNS admitted in court that in August 2010, at Miami International Airport, it imported approximately 11,192 pounds of seafood product by commercial air carrier from Santiago, Chile. Documents accompanying the shipment and filed with U.S. authorities, described the shipment as processed Steelhead Trout, with a wholesale value of $62,233.86. After clearing U.S. Customs, the shipment was transferred to a cold storage facility in Miami. On August 20, 26, and 27, 2010, an employee of TNS acting within the scope of employment and for the benefit of the defendant, transmitted instructions by email to a subsidiary of TNS, directing that the August 2010 consignment be re-labelled as Salmon. Thereafter, TNS caused the seafood product to be shipped to customers in both the United States and Canada, for which it subsequently received payments from its interstate and foreign customers in the approximate amount of $77,536.80.
U.S. Attorney Wifredo A. Ferrer stated, “Imports have become a major source for the fish, shrimp, and other seafood products enjoyed by many Americans. False labelling of these products undermines efforts to ensure that the seafood has been legally harvested, properly handled, and is otherwise safe for distribution to consumers. The U.S. Attorney’s Office strongly supports the efforts of NOAA Fisheries and other federal agencies in insuring the public is not misled, and that all regulatory requirements are met.”
“Combating seafood fraud is a high priority for NOAA Fisheries,” said Eileen Sobeck, Assistant Administrator for NOAA Fisheries. “This fraudulent activity had a direct financial impact on honest fishermen. Our agents and officers will continue to ensure that legitimately harvested and marketed seafood is not undercut by fraudulent products thus protecting fish stocks, the honest fisherman, and consumers.”
Mr. Ferrer commended the investigative efforts of NOAA Office of Law Enforcement and the efforts of U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI), Miami Field Office which contributed to bringing the investigation to a successful conclusion. The case was prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mercer County, N.J., Man Sentenced to 87 Months in Prison for Role in Trenton, N.J., Narcotics RingRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man was sentenced today to 87 months in prison for his role in a conspiracy to distribute oxycodone pain pills, U.S. Attorney Paul J. Fishman announced.
Anthony DiMatteo, 32, of Trenton, previously pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an indictment charging him with conspiracy to distribute and possess with intent to distribute oxycodone. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Between May 2011 and October 2011, DiMatteo sold oxycodone-based prescription pain pills that he received from his conspirators, Joseph A. “JoJo” Giorgianni, Charles Hall III and Mary Manfredo. DiMatteo obtained the pills at JoJo’s Steakhouse in Trenton and sold them, remitting a portion of the proceeds to Giorgianni and Hall. DiMatteo also told Hall how Hall himself could obtain prescription pain pills, which could later be sold, from a Nutley, New Jersey, doctor.
In addition to the prison term, Judge Shipp sentenced DiMatteo to serve three years of supervised release and fined him $1,000.
U.S. Attorney Fishman credited special agents of the FBI’s Trenton Resident Agency, Newark Field Office, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Eric W. Moran and Matthew J. Skahill of the U.S. Attorney’s Office Special Prosecutions Division in Trenton and Camden, respectively.
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Defense counsel: Edward Plaza Esq., Little Silver, New JerseyMarmet Woman Sentneced for Illegally Possessing Stonlen FirearmRead the Press Release
CHARLESTON, W.Va. – A Marmet, West Virginia woman who pawned a stolen firearm was sentenced today to two years in federal prison, U.S. Attorney Booth Goodwin announced. Kristie Jo Dorado, 29, previously pleaded guilty in April of 2014 to being a felon in possession of a firearm. On October 8, 2013 Dorado pawned a Glock, Model 23, .40 caliber pistol at a Charleston, West Virginia pawn shop.
The Marmet Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Man Sentenced to Life in Prison for Sexually Abusing 12 Year-OldRead the Press Release
Contact Person: Jim May (803) 929-3000
Columbia, South Carolina -----United States Attorney Bill Nettles stated today that Leland Victor Nielsen, III, age 32, of Sumter, South Carolina, was sentenced to life in prison for sexually abusing a young girl. Chief United States District Judge Terry L. Wooten sentenced Nielsen today in federal court in Columbia, South Carolina, after a jury previously convicted Nielsen of multiple counts of Aggravated Sexual Abuse of a Child (18 U.S.C. § 2241(c)) and Sexual Abuse of a Minor (18 U.S.C. § 2243).
Evidence presented over a four-day trial established that for six months Nielsen systematically and methodically performed more and more sexual acts with the child, culminating with forcible sexual assault of the child on numerous occasions. “The protection of children, is an obligation of any civilized society,” stated United States Attorney Bill Nettles. “This conviction and sentence underscore the fact that people who commit crimes against children have no place in society.”
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorneys Jim May and Jay Richardson of the Columbia office prosecuted the case.Man Sentenced in Raleigh Carjacking CaseRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever III sentenced SERGIO LOPEZ REYNA , 27, to 171 months imprisonment, followed by 5 years of supervised release.
Reyna was named in an Indictment filed on July 17, 2013 charging him with Carjacking and Aiding and Abetting on November 1, 2012 and Brandishing of a Firearm in Furtherance of a Crime of Violence and Aiding and Abetting on November 1, 2012. On February 10, 2014, REYNA pled guilty to those charges.
According to the investigation, SERGIO LOPEZ REYNA, Manuel James Estrada, Jesus Morales-Rodriguez, Luis Felipe Dominguez, and Luis Melito Arellano were involved in a carjacking in Raleigh, North Carolina. On October 31, 2012, REYNA, Estrada, Morales-Rodriguez, Dominguez, and Arellano traveled to La Saona night club in Raleigh. In the early morning on November 1, 2012, they identified a potential victim who was parking his vehicle outside the club. At that point, REYNA, Estrada, and Morales-Rodriguez, all brandishing firearms, confronted the victim. REYNA placed a firearm to the victim’s head and forced him back into his vehicle. Once the conspirators gained control of the victim and his vehicle, Arellano and Dominguez joined them in the vehicle. Morales-Rodriguez drove the vehicle while Arellano was in the front passenger seat. REYNA, Estrada, and Dominguez sat with the victim in the backseat. REYNA forced the victim’s head down while his face was covered with his shirt. The conspirators also stole the victim’s ring, valued at $100, and his wallet, valued at $50. A wallet belonging to the victim’s sister, valued at $56, was also taken from the vehicle during the robbery.
Dominguez, Estrada, and Arellano were previously sentenced for their involvement in this case. Luis Felipe Dominguez was sentenced on March 3, 2014 to 60 months imprisonment followed by 3 years of supervised release. Manuel James Estrada was sentenced on April 4, 2014 to 102 months imprisonment followed by 5 years of supervised release and Luis Melito Arellano was sentenced on June 4, 2014 to 168 months imprisonment followed by 3 years of supervised release. Jesus Morales-Rodriguez has not been arrested and is considered a fugitive.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Raleigh Police Department and the Wake County Sheriff’s Office. Assistant United States Attorney Toby W. Lathan prosecuted the case of the government.
Little Eagle Man Sentenced for Two Charges of Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota, man convicted of Domestic Assault by a Habitual Offender was sentenced on July 28, 2014, by U.S. District Judge Charles B. Kornmann.
Anthony Bobtail Bear, Jr., age 34, was sentenced to 60 months of custody and 3 years of supervised release for a December 2013 incident. Bobtail Bear also received 77 months of custody and 3 years of supervised release for a February 2014 incident. The sentences and supervised releases are to be served concurrently. Bobtail Bear is also to pay $200 special assessment to the Federal Crime Victims Fund.
Bobtail Bear was indicted by a federal grand jury on February 12, 2014, and March 11, 2014. He pled guilty to both charges on April 22, 2014.
The first conviction stems from an incident on December 3, 2013, when the Bureau of Indian Affairs was advised of a 911 domestic abuse call in McLaughlin. An officer responded to the call and spoke with an adult female victim and her mother who informed the officer that Bobtail Bear and the female victim were arguing in a back bedroom of the house. Bobtail Bear started jerking the victim’s arm, punching her in the stomach and throwing her on the bed.
The other conviction stems from an incident which occurred on February 26, 2014, when a Bureau of Indian Affairs was dispatched to the IHS hospital in Fort Yates, North Dakota. The officer made contact with an adult female victim who appeared to have a chunk of her lower lip missing. She also had a swollen eye and bruises on her face. The victim informed the officer that she had had a fight with her boyfriend, Bobtail Bear, when she informed him she wanted to leave and go to her cousin’s house in McLaughlin. When the victim attempted to use the phone, Bobtail Bear pushed her down, causing her to hit her head on the edge of a coffee table. Bobtail Bear also hit her several times with an open hand on the left side of the face.
At the time of these incidents, Bobtail Bear had four final judgments of conviction in Standing Rock Sioux Tribal Court for offenses that would have been, if subject to federal jurisdiction, an offense against a spouse or intimate partner.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the cases.
Bobtail Bear was immediately turned over to the custody of the U.S. Marshals Service.
Lantry Man Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lantry, South Dakota, man convicted of Involuntary Manslaughter was sentenced on July 28, 2014, by U.S. District Judge Roberto A. Lange.
Charg Hebb, age 20, was sentenced to 1 year and 1 day of custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Hebb was indicted for Involuntary Manslaughter by a federal grand jury on February 13, 2013. He pled guilty to Involuntary Manslaughter on April 15, 2014.
The conviction arose from an incident on October 12, 2012, on County Road 50 near Lantry, on the Cheyenne River Sioux Indian Reservation, when Hebb caused a car crash that killed a young man who was a passenger in his vehicle. Hebb was driving his 2005 Pontiac Bonneville in excess of the speed limit, driving recklessly and on the wrong side of the road, causing a head-on collision with a 2001 Chevrolet Blazer. Two people in the Blazer were also seriously injured.
This case was investigated by the Federal Bureau of Investigation, the South Dakota Highway Patrol, and the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Hebb was ordered to self-surrender to the U.S. Marshals Service on August 12, 2014, to begin serving his sentence.
Kearney Residents Among Five Indicted for $2.6 Million Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Kearney, Mo., residents are among five defendants who have been indicted for their roles in a $2.6 million conspiracy to distribute methamphetamine.
Sabrena Lynn Morgan, 37, and Elgin Eugene Dothage, also known as “Butch,” 38, both of Kearney, Steven Lee Schreier, Jr., of Excelsior Springs, Mo., Ronald Louis Roberts, 51, of Lathrop, Mo., and Franklin Charles Carter, also known as “Frankie,” 25, of Grandview, Mo., were charged in a five-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on July 29, 2014. That indictment has been unsealed and made public following the arrests and initial court appearances of several defendants.
The federal indictment alleges that all five defendants participated in a conspiracy to distribute methamphetamine between Jan. 1, 2010, and July 29, 2014. According to the indictment, the drug-trafficking conspiracy was responsible for the distribution of more than 50 kilograms of methamphetamine. Based on a conservative street price of $1,500 per ounce, the indictment says, the conspiracy took in $2,650,000.
The indictment also alleges that all five defendants participated in a money-laundering conspiracy during the same time period. According to the indictment, conspirators conducted financial transactions that involved the proceeds of illegal drug trafficking. Conspirators allegedly obtained cash from illegal methamphetamine sales and used those proceeds to further promote the buying and selling of additional methamphetamine. Conspirators allegedly used items of value they obtained from methamphetamine distribution as collateral for various purposes, including drug debt reduction and obtaining additional methamphetamine for use and distribution.
In addition to the drug-trafficking and money-laundering conspiracies, the indictment charges Morgan and Dothage together with one count of possessing firearms in furtherance of a drug-trafficking crime. The indictment alleges that Morgan and Dothage were in possession of a pink pump-action shotgun, a loaded 9mm Hi Point pistol and a loaded Smith & Wesson .22-caliber pistol.
Morgan and Dothage are also charged together in one count of maintaining their residence in Kearney as a place for distributing and using methamphetamine.
Dothage is also charged with one count of being a felon in possession of a firearm. The indictment alleges that Dothage, having been convicted of a felony, was in possession of firearms and ammunition during the time of the conspiracies. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition.
The federal indictment also contains a forfeiture allegation, which would require the defendants to forfeit any property derived from the proceeds of the alleged violations, including a money judgment of $2,650,000, which was received in exchange for the unlawful distribution of methamphetamine.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Buchanan County Drug Strike Force, the Drug Enforcement Administration, the Clay County Sheriff’s Department and the Clay County Drug Task Force.Justice Department to Monitor Elections in TennesseeRead the Press Release
Memphis, TN – The Justice Department announced today that it will monitor the election on August 7, 2014, in Shelby County, Tenn., to ensure compliance with the Voting Rights Act and other federal voting rights statutes. The Voting Rights Act prohibits discrimination in the election process on the basis of race, color or membership in a minority language group.
Department personnel will monitor polling place activities. A Civil Rights Division attorney will coordinate federal activities and maintain contact with local election officials.
To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Civil Rights Division at 1-800-253-3931.
Visit this www.usdoj.gov/crt/voting for more information about the Voting Rights Act and other federal voting laws.Justice Department Settles Immigration-Related Employment Discrimination Claim Against New York Nursing HomeRead the Press Release
The Justice Department announced today that it reached an agreement with Isabella Geriatric Center (IGC), a nursing home located in New York City, resolving a claim that IGC engaged in a pattern or practice of citizenship discrimination during the employment eligibility reverification process in violation of the Immigration and Nationality Act (INA).
The department’s investigation found that IGC required lawful permanent resident employees to present a new Permanent Resident Card when their prior card expired, even though the Form I-9 and E-Verify rules prohibit this practice. Lawful permanent residents have permanent work authorization in the United States, even after their Permanent Resident Cards expire. The investigation also found that IGC required lawful permanent residents to provide proof of U.S. citizenship if they became naturalized citizens. The INA’s anti-discrimination provision prohibits employers from placing additional documentary burdens on work-authorized employees during the employment eligibility verification process based on their citizenship status.
“The INA protects authorized workers from discrimination in the employment eligibility verification and reverification processes,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “The Department of Justice is committed to ensuring that employers follow the law and that they do not impose discriminatory obstacles that prevent work-authorized individuals from working.”
Under the settlement agreement, IGC will pay $14,500 in civil penalties to the United States; undergo training on the anti-discrimination provision of the INA; establish a back pay fund to compensate potential economic victims; revise its employment eligibility reverification policies; and be subject to monitoring of its employment eligibility verification practices for two years.
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) within the Justice Department is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee, unfair documentary practices, retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php , email [email protected] ; or visit OSC’s website at www.justice.gov/crt/about/osc .
Applicants or employees who believe they were subjected to: (1) different documentary requirements based on their citizenship status, immigration status, or national origin; or (2) discrimination based on their citizenship status, immigration status or national origin in hiring, firing, or recruitment or referral for a fee, should contact OSC’s worker hotline for assistance.
James Willis Kirk, Jr., and Glen E. Smith, Jr., Sentenced in Investment Fraud SchemeRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever III sentenced JAMES WILLIS KIRK, JR., age 63, and GLEN E. SMITH, JR., age 60, to 60 months and 48 months imprisonment respectively. A third defendant, CAROL APRIL GRAFF, age 61, was sentenced to 18 months. At the request of the government the award of restitution has been postponed for 60 days.
KIRK and GRAFF are from Washington, NC. SMITH is from Lake Worth, FL. All three defendants pled guilty to Conspiracy to commit Mail Fraud, Wire Fraud, Sell Unregistered Securities, and Engage in Unlawful Monetary Transactions in violation of Title 18, United States Code, Section 371. KIRK and SMITH also pled guilty to selling Unregistered Securities in violation of Title 15, United States Code, Sections 77e and 77x.
Assistant United States Attorney David A. Bragdon stated, “This scheme targeted victims at churches, often in rural areas. With promises of zero risk, many victims invested money they could not afford to lose. Their lives have been turned upside down.”
KIRK, SMITH, and GRAFF all testified in the trial of co-conspirator Thomas L. Kimmel, who was found guilty by a jury on July 26, 2014 of Conspiracy, Mail Fraud, and Money Laundering. The Government’s evidence showed that Kimmel solicited about $20 million for Sure Line Acceptance Corporation from investors. Investors were falsely promised that their principal was protected by collateral in the form of cars and car loans.
IRS-CI Special Agent in Charge Thomas J. Holloman III stated, “These defendants are con artists who took advantage of honest hardworking people. Inevitably, these schemes collapse causing financial hardships on those whose money was taken through fraud.”
Investigation of this case was conducted by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, and the Postal Inspection Service. Assistant United States Attorneys David A. Bragdon and Evan Rikhye represented the government.
Investment Advisor Indicted for Defrauding Investors for More Than $10 MillionRead the Press Release
United States Attorney Andrew M. Luger today announced the indictment of SEAN MEADOWS, 41, for using his financial planning and asset management firm, Meadows Financial Group (MFG), to operate a Ponzi scheme and fraudulently obtain at least $10 million from at least 50 victims. The defendant is charged with Mail Fraud, Wire Fraud, and Money Laundering offenses.
“Abusing the trust of those who invest their hard-earned money is particularly cynical,” said U.S. Attorney Luger. “This defendant is charged with defrauding victims out of their retirement and other savings, and spending their money on his own lavish lifestyle. Targeting investment fraud is a priority of this U.S. Attorney’s Office, and we will continue to work closely with our partners in federal and local law enforcement to root out fraud and seek justice for victims.”
Minnesota Commerce Commissioner Mike Rothman said: “We will fight for our seniors and investors who become victimized by the tragic financial abuse by professionals; we are working hard to stop and punish those who use their professional licenses to steal from Minnesotans. Working together with U.S. Attorney Luger, we are sending a strong message that they will be brought to justice.”
As charged in the indictment, MEADOWS operated MFG, through which he sold insurance and investment products to clients in Minnesota, Indiana, Arizona, and elsewhere. From 2007 until April 2014, MEADOWS successfully solicited a total of at least $10 million from more than 50 clients for a purported investment managed by MFG. The defendant falsely told victims that he would use their funds to purchase bonds, real estate, or other legitimate third-party investments.
MEADOWS lured victims into removing funds from their retirement and other savings accounts by promising high rates of returns – up to 10 percent annually – when, in fact, he did not invest their funds and did not have a legitimate means by which to make interest payments. Instead, MEADOWS used funds from new investors to make interest and/or principal repayments to existing investors. For example, as charged in the indictment, on September 26, 2013, MEADOWS made a payment of more than $500,000 to one victim, purportedly paying off a successful investment with MFG. In fact, the payment was actually comprised of newly invested funds from other victims.
According to the charges, MEADOWS used the illicit proceeds of the Ponzi scheme to pay personal expenses, including: making “salary” payments to himself; making payments to his spouse; paying expenses on personal investment properties; paying personal credit card bills; purchasing a vehicle for himself; traveling to Las Vegas; gambling at various casinos and online; and spending more than $100,000 at adult entertainment establishments in Minnesota and Las Vegas.
This case is being prosecuted by Assistant U.S. Attorney Benjamin Langner.
U.S. Attorney Luger thanked Agents Jonathan Ferris and Ephraim Holmgren of the Minnesota Department of Commerce Fraud Bureau, the United States Postal Inspection Service, and the Internal Revenue Service-Criminal Investigation Division for their assistance with the investigation.
Defendant Information: SEAN MEADOWS, D.O.B. 4/25/1973
Eden Prairie, MN
Charges: • Mail Fraud, 3 counts
• Wire Fraud, 7 counts
• Money Laundering, 1 count
• Transaction Involving Fraud Proceeds, 1 countThe charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Insurance Firm Operator Charged with Fraud and Tax EvasionRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced a two-Count criminal Information was filed yesterday in U.S. District Court in Scranton charging Joseph S. Hyduk, age 54, Hazleton, Pennsylvania, with wire fraud and income tax evasion.
The Information alleges that Hyduk did business as BNA Financial Services, an insurance company which he operated from his home. Allegedly, during 2010 through 2012, Hyduk fraudulently diverted approximately $1 million dollars from his clients’ accounts to himself for his own personal use. The Government also filed a plea agreement in the case which is subject to the approval of the Court.
If convicted, Hyduk faces a maximum of 25 years’ incarceration, $500,000 in fines and a term of supervised release.
The investigation was conducted by the FBI Allentown office and the Internal Revenue Service, Criminal Investigation, Scranton office. Prosecution is assigned to Assistant U.S. Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Henrietta Couple Indicted on Turbotax SchemeRead the Press Release
ROCHESTER , N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in has returned an indictment charging Humayun Farid, (a/k/a Jimmy Farid), 35, and Aysha Humayun, (a/k/a Aysha Hussain), 33, of Henrietta, N.Y., with conspiracy to commit mail fraud, mail fraud and filing a false tax return. The charges carry a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that according to the indictment, the defendants conspired to defraud Intuit, Inc., the manufacturer of TurboTax and Quicken software products. As part of the scheme, the defendants contacted Intuit, claimed that software discs they purchased were lost, stolen or damaged, and requested free replacement discs. Intuit then mailed the free replacement discs to the defendants at addresses in Henrietta and Maryland. Farid and Humayun then advertised and sold the discs on eBay.com to buyers around the country, and kept the proceeds for their own profit. Between November 2009 and June 2011, the defendants are alleged to have falsely and fraudulently obtained thousands of copies of software to which they were not entitled and were not authorized to sell.
The Indictment is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, Inspectors of the United States Postal Inspection Service, under the direction of Inspector Shelly Binkowski, and Special Agents of the Internal Revenue Service – Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle Kitchen.
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.Franklin, Tennessee-based Community Health Systems, Inc. to Pay $98.15 Million to Resolve False Claims Act AllegationsRead the Press Release
Alleged Medically Unnecessary In-Patient Admissions & Violations of the Stark Law Results in Largest Ever FCA Settlement in Middle Tennessee
NASHVILLE, Tenn., July 30, 2014 ? Community Health Systems, Inc. (CHS), the nation’s largest operator of acute care hospitals, has agreed to pay $98.15 million to resolve allegations that the company knowingly billed government health care programs for inpatient services that should have been billed as outpatient or observation services, announced David Rivera, U.S. Attorney for the Middle District of Tennessee and Stuart F. Delery, Assistant Attorney General for the Department of Justice?s Civil Division. The settlement also resolves allegations that one of the company’s affiliated hospitals improperly billed the Medicare program for certain inpatient procedures and for services rendered to patients referred in violation of the Physician Self-Referral Law (commonly known as the Stark Law). CHS is based in Franklin, Tennessee, and has 206 affiliated hospitals in 29 states.
"This is the largest False Claims Act settlement in this district and it reaffirms this office's commitment to investigate and pursue health care fraud that compromises the integrity of our health care system," said David Rivera, the United States Attorney for the Middle District of Tennessee. “This office is committed to ensuring that all companies billing government healthcare programs are responsible corporate citizens and that hospital providers do not engage in schemes to increase medically unnecessary in-patient admissions of government healthcare program beneficiaries in order to increase profits.”
Charging the government for higher cost inpatient services when patients need only lower cost outpatient services wastes the country’s health care resources,” said Stuart F. Delery, Assistant Attorney General for the Department of Justice?s Civil Division. In addition, providing physicians with improper financial incentives to refer patients compromises medical judgment and risks depriving patients of the most appropriate health care available. This Department will continue to enforce the laws to prevent this type of abuse of the nation’s health care resources and to ensure patients receive the most appropriate care.”
The United States alleged that from 2005 through 2010, CHS engaged in a deliberate corporate-driven scheme to increase inpatient admissions of Medicare, Medicaid, and the Department of Defense’s TRICARE program beneficiaries, over the age of 65, who originally presented to the emergency departments at 119 CHS hospitals. The United States further alleged that the inpatient admission of these beneficiaries was not medically necessary, and that the care needed by, and provided to, these beneficiaries should have been provided in a less costly outpatient or observation setting. CHS agreed to pay $89.15 million to resolve these allegations. The settlement does not include hospitals that CHS acquired from Health Management Associates (HMA) in January 2014.
In addition, the United States alleged that from 2005 through 2010, one of CHS’s affiliated hospitals, Laredo Medical Center, Laredo, Texas (LMC), presented false claims to the Medicare program for certain cardiac and hemodialysis procedures performed on a higher cost inpatient basis that should have been performed on a lower cost outpatient basis. The United States also alleged that from 2007 through 2012, LMC improperly billed Medicare for services referred to LMC by a physician who was offered a medical directorship at LMC, in violation of the Stark Law. That law prohibits a hospital from submitting claims for patient referrals made by a physician with whom the hospital has an improper financial relationship, and is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient. CHS agreed to pay $9 million to resolve the allegations involving LMC.
As part of today’s agreement, CHS entered into a Corporate Integrity Agreement (CIA) with the United States Department of Health and Human Services, Office of Inspector General, requiring the company to engage in significant compliance efforts over the next five years. Included in the CIA is the requirement that CHS retain independent review organizations to review the accuracy of the company’s claims for inpatient services furnished to federal health care program beneficiaries.
The settlement resolves lawsuits filed by several whistleblowers under the qui tam provisions of the False Claims Act, which permit private parties to file suit on behalf of the government and obtain a portion of the government’s recovery. Those relators include Kathleen Bryant, former Director of Health Information Management at CHS’s Heritage Medical Center in Shelbyville, Tennessee; Bryan Carnithan, former Emergency Medical Services Coordinator at CHS’ Heartland Hospital in Marion, Illinois; Amy Cook-Reska, former coder for CHS’ Laredo Medical Center in Laredo, Texas; Sheree Cook, former nurse at CHS’s Heritage Medical Center in Shelbyville, Tennessee; James Doghramji, former internal medicine and emergency room physician at CHS’s Chestnut Hill Hospital in Philadelphia, Pennsylvania; Thomas Mason, former emergency room physician at Lake Norman Regional Medical Center in Mooresville, North Carolina; Scott Plantz, former emergency room physician at CHS’s Longview Regional Medical Center in Longview, Texas; and Nancy Reuille, former nurse and Supervisor of Case Management at CHS’s Lutheran Hospital in Fort Wayne, Indiana. The relators’ share of the settlement has not yet been determined.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $20.2 billion through False Claims Act cases, with more than $14 billion of that amount recovered in cases involving fraud against federal health care programs.
This settlement was the result of a coordinated investigation led by the United States Attorney’s Office for the Middle District of Tennessee, the Department of Justice, Civil Division, Commercial Litigation Branch and the United States Attorney’s Office for the Southern District of Texas and also involved the efforts of the United States Attorney’s offices of the Northern and Southern Districts of Illinois, Northern District of Indiana, and Western District of North Carolina as well as the Department of Health and Human Services, Office of Inspector General; the Department of Health and Human Services, Office of Audit Services; the Department of Defense, Defense Health Agency, Program Integrity Office; and the Federal Bureau of Investigation. Locally, Assistant United States Attorney John-David H. Thomas of the Middle District of Tennessee represents the government.
The lawsuits are captioned United States ex rel. Bryant v. Community Health Systems, Inc., et al., Case No. 10-2695 (S.D. Tex.); United States ex rel. Carnithan v. Community Health Systems, Inc., et al., Case No. 11-cv-312 (S.D. Ill.); United States ex rel. Cook-Reska v. Community Health Systems, Inc., et al., Case No. 4:09-cv01565 (S.D. Tex.); United States ex rel. James Doghramji; Sheree Cook; and Rachel Bryant v. Community Health Systems Inc., et al., Case No. 3-11-cv-00442 (M.D. Tenn.); United States ex rel. Mason v. Community Health Systems, Inc., et al., Case No. 3:12-cv-817 (W.D.N.C.); United States ex rel. Plantz v. Community Health Systems, Inc., et al., Case No. 10C-0959 (N.D. Ill.); and United States ex rel. Reuille v. Community Health Systems Professional Services Corporation, et al., Case No. 1:09-cv-007RL (N.D. Ind.). The claims resolved by this agreement are allegations only, and there has been no determination of liability.Former Virginia Subcontractor Sentenced for Conspiracy to Bribe Officials at the United States Navy Military Sealift CommandRead the Press Release
A former employee of a government contracting company was sentenced today to 36 months in prison to be followed by three years of supervised release for conspiracy to bribe public officials at the United States Navy Military Sealift Command in exchange for favorable treatment in connection with U.S. government contract work.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, Special Agent in Charge Susan Triesch of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement today after McPhail’s sentencing before United States Chief District Judge Rebecca Beach Smith of the Eastern District of Virginia.
Michael P. McPhail, 49, pleaded guilty to a criminal information charging him with conspiracy to commit bribery on Feb. 19 2014. According to his plea documents, McPhail is a former employee of a Chesapeake, Virginia, government contracting company, referred to as Company A, which sought contracting business from the Military Sealift Command, the leading provider of transportation for the United States Navy. At his plea hearing, McPhail admitted that from March 2005 to January 2007, he contributed approximately $45,000 of his salary toward bribe payments made to two public officials working for the Military Sealift Command to influence them to provide favorable treatment to Company A in connection with United States government contracting work.
Specifically, McPhail and other Company A employees, including Roderic J. Smith, the former president of Company A; Dwayne A. Hardman, the co-founder of Company A; and Adam C. White, a former vice president at Company A provided monthly cash bribes to two Military Sealift Command public officials. The bribery conspiracy resulted in the payment of more than $265,000 in cash bribes, among other things of value, to Kenny E. Toy, the former Afloat Programs Manager for the Military Sealift Command’s N6 Command, Control, Communication, and Computer Systems Directorate, and Scott B. Miserendino, Sr., a former government contractor who performed work for the Military Sealift Command. In addition his prison sentence, McPhail was ordered to forfeit $57,000.
Earlier this year, four other individuals pleaded guilty in connection with the bribery scheme. On Feb. 12, 2014, Toy pleaded guilty to accepting bribes from Company A employees. On Feb. 18, 2014, Hardman pleaded guilty to providing bribes to Toy and Miserendino. On March 5, 2014, Smith pleaded guilty to conspiracy to bribe public officials. On April 4, 2014, White pleaded guilty to conspiracy to commit bribery.
On June 23, 2014, United States District Judge Henry Coke Morgan sentenced Smith to 48 months in prison and ordered him to forfeit $175,000. On July 9, 2014, Judge Smith sentenced Hardman to 96 months in prison and ordered him to forfeit $144,000. On July 11, 2014, Judge Smith sentenced White to 24 months in prison and ordered him to forfeit $57,000. On July 29, 2014, Judge Smith sentenced Toy to 96 months in prison and ordered him to forfeit $100,000.
On May 23, 2014, a grand jury in the Eastern District of Virginia indicted Miserendino and Timothy S. Miller, a businessman whose company sought contracting business from the Military Sealift Command. The indictment charges Miserendino with one count of conspiracy to commit bribery, one count of bribery, one count of conspiracy to commit obstruction of criminal investigations and to commit tampering with a witness, and one count of obstruction of criminal investigations. The indictment charges Miller with one count of conspiracy to commit bribery and two counts of bribery. Trial is set for Sept. 30, 2014, before Judge Smith.
Charges contained in an indictment are merely allegations, and a defendant is presumed innocent unless and until proven guilty.
The case was investigated by the FBI, NCIS, and DCIS. The case was prosecuted by Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Stephen W. Haynie of the Eastern District of Virginia.Former Virginia Subcontractor Sentenced for Bribery ConspiracyRead the Press Release
NORFOLK, Va. – A former employee of a government contracting company, was sentenced today to 36 months in prison for conspiracy to bribe public officials at the United States Navy Military Sealift Command.
United States Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, Special Agent in Charge Susan Triesch of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement today after McPhail’s sentencing before United States Chief District Judge Rebecca Beach Smith of the Eastern District of Virginia.
Michael P. McPhail, 49, pleaded guilty to a criminal information charging him with conspiracy to commit bribery on Feb. 19 2014. According to his plea documents, McPhail is a former employee of a Chesapeake, Virginia, government contracting company, referred to as Company A, which sought contracting business from the Military Sealift Command, the leading provider of transportation for the United States Navy. At his plea hearing, McPhail admitted that from approximately March 2005 to approximately January 2007, he personally contributed approximately $45,000 of his salary toward bribe payments made to two public officials working for the Military Sealift Command. McPhail further admitted that he did so in an effort to unfairly and illegally influence those public officials to provide favorable treatment to Company A in connection with United States government contracting work. Specifically, McPhail and other Company A employees, including Roderic J. Smith, Dwayne A. Hardman, and Adam C. White, provided monthly cash bribes to two Military Sealift Command public officials, Kenny E. Toy, the former Afloat Programs Manager for the Military Sealift Command’s N6 Command, Control, Communication, and Computer Systems Directorate, and Scott B. Miserendino, Sr., a former government contractor. This extensive bribery conspiracy spanned five years, involved multiple co-conspirators and two different companies, and resulted in the payment of more than $265,000 in cash bribes, among other things of value, to Toy and Miserendino.
Earlier this year, four other individuals pleaded guilty in connection with the bribery scheme. On Feb. 12, 2014, Toy pleaded guilty to accepting bribes from Company A employees. On Feb. 18, 2014, Hardman, the co-founder of Company A, pleaded guilty to providing bribes to Toy and Miserendino. On March 5, 2014, Smith, the former president of Company A, pleaded guilty to conspiracy to bribe public officials. On April 4, 2014, White, a former vice president of Company A, pleaded guilty to conspiracy to commit bribery.
On June 23, 2014, United States District Judge Henry Coke Morgan sentenced Smith to 48 months in prison and ordered him to forfeit $175,000. On July 9, 2014, Judge Smith sentenced Hardman to 96 months in prison and ordered him to forfeit $144,000. On July 11, 2014, Judge Smith sentenced White to 24 months in prison and ordered him to forfeit $57,000. On July 29, 2014, Judge Smith sentenced Toy to 96 months in prison and ordered him to forfeit $100,000.
On May 23, 2014, a grand jury in the Eastern District of Virginia indicted Miserendino and Timothy S. Miller, a businessman whose company sought contracting business from the Military Sealift Command. The indictment charges Miserendino with one count of conspiracy to commit bribery, one count of bribery, one count of conspiracy to commit obstruction of criminal investigations and to commit tampering with a witness, and one count of obstruction of criminal investigations. The indictment charges Miller with one count of conspiracy to commit bribery and two counts of bribery. Trial is set for Sept. 30, 2014, before United States Chief District Judge Rebecca Beach Smith.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case was investigated by the FBI, DCIS, and NCIS. The case was prosecuted by Assistant U.S. Attorney Stephen W. Haynie of the Eastern District of Virginia and Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section (PIN).
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.
Former Physician Sentenced to Nearly Six Years in Prison on Drug Charge for Trading Prescription Drugs for Sex and CashRead the Press Release
CHICAGO ― A former physician who was affiliated with three Chicago hospitals was sentenced today to nearly six years in federal prison for illegally distributing prescription drugs in exchange for sex and cash. The defendant, JOSHUA D. BARON, a pediatric neurologist, pleaded guilty in March, admitting that he provided approximately 149 prescriptions for controlled substance medications, totaling thousands of doses, to 16 individuals in exchange for sex between 2006 and 2011. These individuals were never patients of Baron, they never visited his office as a patient, and he never asked them about medical issues, took their medical history, conducted an examination, or attempted to diagnose them.
Baron, 40, of Forest Park and formerly of Oak Park, was ordered to begin serving his 70- month sentence on Sept. 12 by U.S. District Judge Rebecca Pallmeyer. The judge also placed Baron on supervised release for 10 years after his sentence and ordered him to pay a $1,000 fine and perform 1,000 hours of community service.
Between late 2006 and early 2011, Baron dispensed prescriptions for controlled substances to individuals outside of the usual course of professional practice and without a legitimate medical purpose. He posted at least 78 advertisements offering to trade various prescription drugs, including Adderall, Norco, Percocet, Xanax, Vicodin, Ativan, Ritalin, Darvocet, OxyContin, and Klonopin, on an online website, and all of the ads were placed through one of three email addresses he used under the sections, “Men Who Would Pay” and “Casual Encounters.” Through these prescriptions, Baron traded thousands of doses of various medications to 16 individuals, mostly for sexual favors and, in some instances, cash.
Baron was initially charged by the state in January 2011 after an undercover investigation by the Wilmette Police Department. He was charged federally in October 2011 following a broader investigation by the U.S. Drug Enforcement Administration and the Chicago Police Department.
Baron was licensed in Illinois in May 2006 and, until January 2011, treated patients at Rush University Medical Center, John H. Stroger, Jr., Hospital of Cook County, and St. Anthony=s Hospital, all in Chicago. He voluntarily surrendered his medical license and his DEA registration in 2011.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Jack Riley, Special Agent-in-Charge of the DEA=s Chicago Field Division. The Wilmette Police Department, the Chicago Police Department Organized Crime Division=s narcotics and gang section, and the Illinois Department of Financial and Professional Regulation assisted in the investigation.
The government was represented by Assistant U.S. Attorneys Carol Bell and Matthew Schneider.
Former Buffalo Police Officer Pleads Guilty to Operating a Large Scale Marijuana Grow OperationRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jorge Melendez, 42, of Buffalo, N.Y., pleaded guilty to conspiracy to manufacture more than 100 marijuana plants. The charge carries a mandatory minimum sentence of five years in prison, a maximum of 40, a fine of $5,000,000 or both.
The plea is the culmination of an investigation on the part of Investigators of the New York State Police, under the direction of Major Michael Cerretto, the Drug Enforcement Administration, under the direction of James J. Hunt, Acting Special Agent in Charge, New York Field Division, Special Agents of the Federal Bureau of Investigation, and the Buffalo Police Department under the direction of Commission Daniel Derenda.
“This defendant - while on duty - violated both his oath and the law by participating in a drug operation." Regrettably, this is the second police officer to be convicted of or sentenced for such conduct in the past several weeks. While the vast majority of Officers deserve our highest praise for keeping us safe each and every day, cases such as this send a strong message to all that any abuse of the badge will be vigorously prosecuted.”
Assistant U.S. Attorney Eric M. Opanga, who is handling the case, stated that on May 31, 2012, Melendez, along with co-defendants Jason Elardo and Robert Osika, were arrested after a long term investigation into a large scale marijuana grow operation at three locations. Specifically, Melendez and Elardo maintained a marijuana grow operation at a warehouse located at 2157 South Park Ave. in Buffalo. During the course of an investigation into the cultivation and distribution of marijuana, law enforcement officers installed hidden surveillance equipment on the second floor of the South Park Ave. warehouse where a grow operation was located. A review of surveillance video showed Melendez and Elardo tending to over 100 marijuana plants.
Prior to installing cameras inside the warehouse, officers monitored the outside of the building, also using surveillance cameras. Melendez was observed arriving in a Buffalo Police patrol car, while on duty, and entering and exiting the location. The defendant worked in the Buffalo Police Department's "D" District, however the warehouse is located in the "A" District.
The outside surveillance cameras also observed Elardo entering the warehouse on a daily basis to tend to the marijuana grow operation. In addition, officers obtained credit card information indicating that Elardo purchased equipment used to sustain an indoor, hydroponic marijuana grow operation. The equipment included a dehumidifier and filters.
At one point during the investigation, officers observed a police badge and credentials belonging to Melendez inside the warehouse. Melendez claimed to have previously lost the badge and identification.
On May 31, 2012, two additional locations were found to contain grow operations. A warehouse located at 1372 Clinton Street in Buffalo and a residence located at 76 West Woodside, both owned by Jason and third co-defendant Gale Elardo, were found to contain a marijuana grow operation. The residence also was found to contain marijuana packaged for sale and two firearms.
Defendants Osika and Gale Elardo have been convicted and are awaiting sentenced. Jason Elardo is deceased.
Former Bank Branch Manager Admits to Embezzling More Than $263,000 of Bank’s MoneyRead the Press Release
CAMDEN, N.J. – A former branch manager for Newfield National Bank in Franklinville, New Jersey, today admitted that she embezzled $263,864 from the bank, U.S. Attorney Paul J. Fishman announced.
Season Wengert, 32, of Franklinville, pleaded guilty before U.S. District Court Judge Robert B. Kugler in Camden federal court to an information charging her with one count of bank embezzlement. Wengert was released on bail after her guilty plea hearing.
According to documents filed in this case and statements made in court:
Wengert worked as the bank manager at the Franklinville Branch of the Newfield National Bank. From Sept. 4, 2007, through Jan. 7, 2013, Wengert embezzled funds by fraudulently conducting online computer transfers of money from 38 accounts belonging to 23 customers into accounts owned by her or her husband. She also withdrew money from customers’ accounts and deposited it into her accounts. As branch manager, Wengert was able to conceal her embezzlement by failing to note the fraudulent withdrawals in the customers’ passbooks and by transferring money through various customers’ accounts to cover shortages. When customers sought to withdraw money from an account which had been embezzled, Wengert would then transfer money from another victim’s account to cover the withdrawal and conceal her fraudulent conduct. Wengert stole $263,864 for her own use.
The bank embezzlement count to which Wenger pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine. Under the terms of her plea agreement, Wenger is required to make full restitution to her former employer for all of the losses resulting from her embezzlement. Sentencing is scheduled for Nov. 13, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
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Defense counsel: John C. Eastlack Jr. Esq., Cherry Hill, New Jersey
Wengert, Season Information
Final Two Ordered to Prison in Firearms Trafficking ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – The final two Houston residents convicted in for their roles in a conspiracy to traffic dozens of AK-47 variant rifles from the Houston area to Mexico have been ordered to prison, announced United States Attorney Kenneth Magidson along with Robert Elder, special agent in charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Javier Resendez, 29, and Mary Bel Deanda, 39, pleaded guilty earlier this year as did Mexican nationals Abel Lopez, 35, and Arturo Garcia, 31; and Roberto Santana Mears, 22, and Martha Gonzales, 41, and Angel Aquino-Pineda, 28, all of Houston.
Today, U.S. District Judge Nelva Gonzales Ramos determined Resendez was responsible for recruiting the straw purchasers and handed him a sentence of 108 months in federal prison to be immediately followed by three years of supervised release. Bel Deanda received a 24-month sentence and will also serve three years of supervised release.
Last month, Lopez, who was also convicted of being an illegal alien in possession of a firearm, received a total of 180 months in federal prison, while Mears, Garcia, Gonzalez and Aquino-Pineda were ordered to serve respective terms of 36, 46, 36 and 100 months.
In 2013, the Kingsville Specialized Crimes and Narcotics Task Force conducted a traffic stop on a truck driven by Aquino-Pineda in Kingsville and located 35 AK-47 variant rifles and $26,000 concealed in a false compartment. Seven of the rifles had obliterated serial numbers. Aquino-Pineda admitted his role was to transport the firearms from Houston to McAllen. The firearms would then be transported to Mexico.
ATF agents traced the firearms to Houston purchasers Deanda, Gonzales and Mears, who admitted they were “straw purchasers” for Resendez. Resendez indicated Garcia recruited him to purchase firearms for Lopez and that the firearms would be taken to Mexico. Resendez then recruited Deanda and Gonzales to “straw purchase” the firearms on his behalf. Mears admitted he was also a “straw purchaser” for Lopez.
On Jan. 24, 2014, agents executed a warrant at Lopez’s residence and located two Norinco, Model MAK90, 7,62x39mm AK-47 style rifles; one Baretta, Model 3032, Tomcat .32 caliber pistol; and $955. Lopez told agents that Garcia and Mears had purchased several firearms for him and that the firearms were to be sent to Mexico.
ATF investigated with the assistance of the Kingsville Specialized Crimes and Narcotics Task Force. Assistant U.S. Attorneys Hugo R. Martinez and Jeffrey D. Preston prosecuted the case.
Federal Grand Jury Indicts Edmond Man Charging with Traveling to Kenya to Engage in Illicit Sexual Conduct with Underage ChildrenRead the Press Release
Oklahoma City, Oklahoma – Late today, a federal grand jury has returned an indictment charging MATTHEW LANE DURHAM, 19, from Edmond, Oklahoma, with traveling from Oklahoma City to Kenya to engage in illicit sexual conduct with children, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to the indictment and other court records, Durham was a volunteer at the Upendo Children’s Home, located in Nairobi, Kenya. Upendo specializes in assisting neglected Kenyan children by providing them with food, housing, clothes, school and religion. Specifically, the indictment alleges three counts: Count 1 alleges that Durham traveled from Will Rogers World Airport to Nairobi, Kenya, for the purpose of engaging in illicit sexual conduct with persons under 18 years of age; Count 2 alleges that Durham engaged in illicit sexual conduct with several minors under 18 years of age; and Count 3 alleges aggravated sexual abuse when he crossed a state line with intent to engage in a sexual act with a child under 12 years of age. The conduct in all three counts is alleged to have occurred between April 30, 2014, and June 17, 2014.
If convicted, Durham faces up to life in prison. Durham is currently detained. The public is reminded that Durham is presumed innocent unless and until proven guilty. Reference is made to the indictment and court record for further information.
This case is the result of an investigation by the Federal Bureau of Investigation, the United States Embassy in Kenya, and the United States Department of State Diplomatic Security Criminal Investigative Office. The case is being prosecuted by Assistant U.S. Attorneys Robert Don Gifford II, and David P. Petermann.
El Departamento de Justicia Resuelve un Caso de Discrimiación en el Empleo Relacionado con Inmigración contra un Asilo de Ancianos en Nueva YorkRead the Press Release
WASHINGTON – El Departamento de Justicia anunció hoy que llegó a un acuerdo con Isabella Geriatric Center (IGC), un asilo de ancianos en la ciudad de Nueva York, por medio del cual se resuelve una acusación que la compañía discriminó por causa del estatus de ciudadanía de empleados durante el proceso de reverificación de elegibilidad de empleo en violación de la Ley de Inmigración y Nacionalidad (INA por sus siglas en inglés).
La investigación del departamento reveló que IGC requería que sus empleados que eran residentes permanentes legales presentaran una nueva Tarjeta de Residente Permanente cuando sus tarjetas anteriores se les vencían, aunque esta práctica está prohibida según las reglas del Formulario I-9 y de E-Verify. Los residentes permanentes legales cuentan con autorización permanente en los Estados Unidos aún cuando se les vencen sus Tarjetas de Residente Permanente. La investigación también descubrió que IGC requería que los residentes permanentes legales proporcionaran evidencia de su ciudadanía estadounidense si es que se nacionalizaban. La provisiόn antidiscriminaciόn de la INA prohíbe que los empleadores impongan cargas documentales adicionales a los trabajadores con autorizaciόn de trabajo durante el proceso de verificación de elegibilidad de empleo basado en el estatus de ciudadanía del individuo.
"La INA protege a los individuos de discriminaciόn en los procesos de verificaciόn y reverificaciόn de elegibilidad de empleo," dijo Molly Moran, Sub-Procuradora General Interina para la Divisiόn de Derechos Civiles. "El departamento se compromete a asegurar que los empleadores respeten la ley, y que no impongan obstáculos discriminatorios que impiden el trabajo de los empleados con autorizaciόn."
Según el acuerdo, IGC le pagará $14,500 en sanciones civiles a los Estados Unidos; participará en adiestramiento sobre la provisión antidiscriminaciόn de la INA; establecerá un fondo para compensar a las víctimas que sufrieron daños econόmicos; revisará sus políticas de reverificaciόn de elegibilidad de empleo; y estará sujeto a un período de monitoreo de sus prácticas de verificación de elegibilidad de empleo por dos años.
La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas con Inmigración es la oficina responsable por hacer cumplir con la provisión antidiscriminaciόn de la INA. Entre otras cosas, la ley prohíbe discriminación por estatus de ciudadanía o del origen nacional durante la contrataciόn, el despido, el reclutamiento o la referencia por comisiόn, las prácticas injustas de documentación, represalias, e intimidación.
Para más información sobre las protecciones contra discriminación en el empleo según las leyes migratorias, llame a la línea directa de OSC para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidad auditiva), llame a la línea directa de OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidad auditiva), o para registrarse para un seminario sin costo ofrecido a través de Internet visite www.justice.gov/crt/about/osc/webinars.php, envíe un correo electrónico al [email protected], o visite el sitio de Internet www.justice.gov/crt/about/osc.
Los solicitantes o empleados que consideren que fueron sujetos a (1) diferentes requisitos de verificación por su estatus de ciudadanía, estatus migratorio u origen nacional, o (2) discriminación por estatus de ciudadanía, estatus migratorio, u origen nacional con relación a la contratación, el despido y el reclutamiento o la referencia por comisión, deberán comunicarse a la línea dedicada a los trabajadores anteriormente citada para poderlos ayudar.
Dusty Clevenger and Casey Pratt Each Sentenced to 72 Months in Prison for Trafficking Marijuana and Possession of A Firearm in Furtherance of Drug TraffickingRead the Press Release
GREENEVILLE, Tenn. – On Aug. 4, 2014, Dusty Clevenger, 27, of Dandridge, Tenn., and Casey Pratt, 30, of Whitesburg, Tenn., were each sentenced to serve 72 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge. Upon release from prison, each will be subject to supervised release under the supervision of the U.S. Probation Office for three years. There is no parole in the federal system.
Both Clevenger and Pratt pleaded guilty to possession of marijuana with the intent to distribute and possession of firearms in furtherance of drug trafficking. Possession of a firearm in furtherance of a drug trafficking offense carries a minimum mandatory 60 month sentence. Clevenger was arrested in May 2012 on an unrelated offense. Later that day, Pratt was observed removing approximately 20 pounds of marijuana from Clevenger’s residence, along with four pistols. Officers apprehended Pratt and seized the marijuana, a quantity of oxycodone pills, and over $4,000 in cash.
The Morristown, Tennessee Police Department was responsible for the investigation. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
Drug Dealer Sentenced to 12 Years in Prison for Selling Crack and Pcp in Prince George’s CountyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Iziah E. Ennis, a/k/a “Ike,” age 34, of Fairfax, Virginia today to 12 years in prison followed by four years of supervised release for conspiring to distribute and possess with intent to distribute cocaine base, commonly known as crack, and phencyclidine, commonly known as PCP.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Richard Marianos of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Washington Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea agreement, from May 2012 to June 2013, Ennis, Kevin Dixon, Glen Price and others sold crack and PCP to drug customers in and around Riverdale, Prince George’s County, Maryland. The conspirators manufactured and distributed crack out of a confidential informant’s residence. The confidential informant, working under the direction of ATF, met with Ennis and his co-conspirators on numerous occasions. Twice in May 2013, the confidential informant sold crack and/or PCP to Ennis.Kevin L. Dixon, a/k/a “Richie White Bread,” of Washington, D.C., and Glen Price, a/k/a “Mynds,” of Laurel, Maryland, both age 35, previously pleaded guilty to their participation in the conspiracy. Dixon was sentenced to 30 months in prison and Price is scheduled to be sentenced on August 27, 2014 at 11:00 a.m.
United States Attorney Rod J. Rosenstein praised the ATF and Prince George’s County Police Department for their work in the investigation and thanked Assistant U.S. Attorneys Thomas M. Sullivan and Nicolas Mitchell, who prosecuted the case.Dallas Registered Sex Offender Faces Life in Federal Prison on A Multitude of Child Pornography Convictions That Involved A Four-Year-Old ChildRead the Press Release
DALLAS — Timothy Rinehart, 35, of Dallas, pleaded guilty today before U.S. Magistrate Judge David L. Horan to a superseding indictment charging a multitude of child pornography offenses, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, according to the factual resume filed in the case, (there is no plea agreement), Rinehart pleaded guilty to one count of production of child pornography, which carries a statutory penalty of not less than 25 years or more than 50 years in federal prison; one count of attempted transportation of child pornography, which carries a statutory penalty of not less than 15 years or more than 40 years in federal prison; one count of transportation of child pornography, which carries a statutory penalty of not less than 15 years or more than 40 years in federal prison; two counts of possession of child pornography, which carry a statutory penalty of not less than 10 years or more than 20 years in federal prison, per count; and one count of a registered sex offender committing a felony offense involving a minor, which carries a mandatory, statutory, consecutive10-year penalty.
According to the Elements of the Offenses filed in the case, Rinehart faces a statutory penalty of at least 35 years of mandatory minimum imprisonment and up to 180 years in federal prison. The projected guideline sentence range, even with the acceptance of responsibility, will most likely be life imprisonment. A sentencing date, before U.S. District Judge Jane J. Boyle, has not been set.
According to court documents and the Stipulated Facts filed in this case, on August 15, 2006, in the Eastern District of Texas, Rinehart was sentenced to 51 months in federal prison after pleading guilty to one count of possession of child pornography.
In April 2012, Rinehart used John Doe, a four-year-old male minor, to engage in sexually explicit conduct and then used his cell phone to take photos of that conduct. In late May 2012, Rinehart used his computer, the Internet and peer-to-peer file sharing to share images of minor boys engaged in sexually explicit conduct. In early May 2013, Rinehart again used peer-to-peer file sharing to share images of minors engaging in sexually explicit conduct. On October 5, 2012, Rinehart possessed a cell phone and an external hard drive that each contained images of minors involved in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI is investigating. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Convicted Felon Sentenced for Illegally Possessing More Than 80 FirearmsRead the Press Release
CHARLESTON, W.Va. – A felon convicted in 2003 to unlawful wounding was sentenced today to eight years in federal prison, U.S. Attorney Booth Goodwin announced. Dorsey Woolwine, Jr., 63, of Belle, West Virginia previously pleaded guilty in January of 2014 to being a felon in possession of firearms.
On March 24, 2012, investigators from the Metropolitan Drug Enforcement Network Team (MDENT) searched Woolwine’s Simmons Creek Road residence and seized 29 firearms including a sawed-off rifle. On May 15, 2013, members of the West Virginia State Police executed a search warrant at Woolwine’s residence and seized 52 firearms, methamphetamine, and scales. Two of the firearms had been reported stolen. Woolwine told investigators that he had been selling methamphetamine from the residence for approximately six years.
MDENT and the WVSP conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Company Owner Sentenced to More Than Two Years in Prison for Dumping Fracking Waste in Mahoning River TributaryRead the Press Release
The owner of a Youngstown-based company was sentenced to more than two years in prison for violating the Clean Water Act by dumping fracking waste into a tributary of the Mahoning River, said Steven M. Dettelbach, the United States Attorney for the Northern District of Ohio.
Benedict W. Lupo, 64, of Poland, Ohio, was found guilty earlier this year of one count of making an unpermitted discharge. U.S. District Judge Donald Nugent sentenced Lupo to 28 months in prison and fined him $25,000.
The illegal discharges took place more than 30 times between Nov. 1, 2012 and Jan. 31, 2013, according to court documents.
“Clean air and fresh water is the birthright of every man, woman and child in this state,” Dettelbach said. “Intentionally breaking environmental laws is not the cost of doing business, it's going to cost business owners their freedom.”
“Ben Lupo put his own interests ahead of everyone else’s, and he deserved to face a severe penalty for his actions,” Ohio Attorney General Mike DeWine said. “The recent water crisis in Toledo is a grave reminder of how important it is to protect our waterways. Those who commit crimes against the environment jeopardize the health and safety of Ohioans, and our natural resources and wildlife. They must be held accountable.”
“Discharging pollution into waterways is illegal and endangers human health, wildlife and the environment,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “Oil and gas production must include safe, legal treatment and disposal of drilling byproducts. Today’s sentence reflects EPA’s commitment to protecting our natural resources and the communities that rely upon them.”
“This case highlighted a gap in Ohio law regarding the State’s ability to take strong legal action in response to intentional, egregious violations of clean-water regulations,” said Ohio EPA Director Craig W. Butler. “We are fortunate the U.S. Department of Justice used its legal authority to pursue felony violations.”
According to the indictment and related court documents:
Hardrock Excavating LLC was owned by Lupo and located at 2761 Salt Springs Road in Youngstown. The company provided services to the oil and gas industry in Ohio and Pennsylvania, including the storage of brine and oil-based drilling mud used in hydrofracturing, or fracking.
There were approximately 58 mobile storage tanks at the facility and each holds approximately 20,000 gallons.
Lupo, who owns Hardrock, directed employees to empty some of the waste liquid stored at the facility into a nearby wastewater drain on or about Nov. 1, 2012. Lupo directed the employees to conduct this activity only after no one else was at the facility and only after dark.
The employees, at Lupo’s direction, emptied some of the waste liquid at the facility into the nearby stormwater drain using a hose on numerous occasions over the next several months. The drain flowed into a tributary of the Mahoning River and ultimately into the Mahoning River.
The last time an employee emptied some of the waste liquid into the drain was on or about Jan. 31, 2013.
The waste liquid that night included brine and drill cuttings. A sample of the discharge taken that night was black in color and a subsequent analysis showed the presence of several hazardous pollutants, including benzene and toluene.
This case is being prosecuted by Special Assistant U.S. Attorney Brad Beeson following an investigation by the Ohio EPA, Ohio Department of Natural Resources, U.S. EPA, the Ohio Bureau of Criminal Investigation, the Youngstown Department of Public Works and the Youngstown Fire Department.
Chicago Man Sentenced to 30 Years in Prison for Forced Sex-Trafficking of Four Victims, Including Two MinorsRead the Press Release
CHICAGO — A Chicago man was sentenced today to 30 years in federal prison for forced sex-trafficking of two minor and two young adult women. The defendant, CARL BRANDON SMITH, forced his victims to engage in commercial sex acts, used physical violence, and threatened to kill them if they ever left him between 2010 and early 2012.
Smith, also known as “Moo,” 27, pleaded guilty in January 2103 to transporting a minor from Wisconsin to Illinois for prostitution. He targeted young and vulnerable women and girls, ages 17 through 21. He psychologically manipulated them, convinced them that he was their boyfriend who loved them, and then forced them to earn their keep by working as prostitutes.
One victim spoke in court today, describing the physical and emotional impact that Smith’s crimes had on her. Addressing the defendant, she said she has moved on in her life, but she will remain permanently scarred.
“You were a violent pimp. . . . The pain, fear, and harm you’ve inflicted on these women is devastating,” U.S. District Judge Amy J. St. Eve said in imposing the sentence. Smith must serve at least 85 percent of his sentence and the judge placed him on five years’ supervised release after he is imprisoned. Smith was also ordered to pay approximately $239,000 in restitution to be allocated among the four victims based on a formula that takes into account the number of days each was prostituted, how many men they were forced to have sex on average each day, and the rate that Smith advertised their services.
“He did unspeakable things to his victims,” Assistant U.S Attorney Christopher Grohman argued at sentencing, adding in a written memo that the government could not “put into words the magnitude of harm or the life-altering consequences Smith caused his victims through his mosaic of cruelty.”
After the victims started in Smith’s employ, he kept them “in line” using a regime of verbal threats, drugs, physical beatings, and forcible sex acts. For just under two years, he “caused incalculable physical and psychological damage to his victims, in some cases scarring them physically and emotionally for life,” AUSA Grohman argued.
According to court documents, Smith met one victim in December 2010 and began contacting her via phone, text, and social media, asking her to move to Chicago, intending that she be his “girlfriend” and also engage in prostitution. In February 2011, Smith drove from Chicago to the victim’s residence in Wisconsin, and then drove her from Wisconsin to his apartment in Chicago, knowing that she was under 18 at the time.
Once in Chicago, Smith “dated” the victims for approximately a week before she began working as a prostitute under his employ between February and July 2011. Acting as her pimp, Smith advertised the victim for commercial sex on internet sites, and instructed her to have sex with customers in his apartment and in area motels, with Smith collecting the money she earned. The DuPage County Sheriff’s Office, the Naperville and Aurora police departments, and the Cook County Human Trafficking Task Force assisted in the investigation. The government was represented by Assistant U.S. Attorney Christopher Grohman.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Carlsbad Man Pleads Guilty to Federal “Spice” Trafficking ChargeRead the Press Release
ALBUQUERQUE – Phillip Larez, 33, of Carlsbad, N.M., entered a guilty plea this afternoon in Las Cruces federal court to a distribution of a controlled substance analogue charge. Under the terms of his plea agreement, Larez will be sentenced to a year of probation.
Larez and his co-defendants, Garlan R. Plumlee, 62, and Justin E. Thompson, 33, also residents of Carlsbad, were indicted in Dec. 2012, and charged with conspiracy to distribute a controlled substance analogue, distribution of a controlled substance analogue, and possession of a controlled substance analogue with intent to distribute. The indictment also charged Plumlee with money laundering offenses. The indictment was superseded in March 2014, to add an additional possession with intent to distribute charge against the three defendants.
According to the superseding indictment, from March 2011 through June 2012, the defendants conspired to distribute controlled substance analogues in Eddy County, N.M. The indictment also alleges that the defendants distributed controlled substance analogues on Feb. 2, 2012 and June 27, 2012, and that they possessed controlled substance analogues with intent to distribute on June 28, 2012. Plumlee also is charged with laundering the proceeds of this unlawful drug trafficking on Jan. 18, 2012, Feb. 10, 2012, May 23, 2012 and June 29, 2012.
The controlled substance analogues charged in the superseding indictment are commonly referred to as synthetic marijuana or “spice.” According to the DEA, over the past several years, there has been a growing use of synthetic cannabinoids. Smoke-able herbal blends marketed as being “legal” and providing a marijuana-like high have become increasingly popular because they are easily available and, in many cases, more potent and dangerous than marijuana. These products consist of plant material that has been coated with dangerous psychoactive compounds that mimic THC, the active ingredient in marijuana. These substances, however, have not been approved by the Food and Drug Administration for human consumption, and there is no oversight of the manufacturing process. Synthetic cannabinoids often are labeled as incense to mask their intended purpose.
According to court filings, the three men used “The Looking Glass,” a head shop owned by Plumlee and located on Canal Street in Carlsbad to sell “spice,” under the names “Scooby Snax,” “Diablo,” and “Knockout.” Court filings state that officers seized approximately 4,779 packages of “spice” with 38 different names from “The Looking Glass” on June 28, 2012, when they executed a search warrant at the business. Plumlee allegedly withdrew $147,000 out of his business and personal bank accounts the day after the search warrant was executed.
During today’s proceeding, Larez entered a guilty plea to Count 3 of the superseding indictment charging him with distributing “spice” on June 27, 2012. In his plea agreement, Larez admitted that he was employed at a business called “The Looking Glass” that sold substances which were labeled as “incense.” On June 27, 2014, as part of his job at “The Looking Glass,” Larez sold some “incense” to an undercover officer, and the “incense” contained a detectable amount of an analogue known as “spice.” Larez admitted knowing that the substance was intended for human consumption and that the substance had a substantially similar effect on the human body as other substances which had been listed as controlled substances under the law.
Co-defendant Thompson entered a guilty plea on April 4, 2014, to Count 1 of the superseding indictment charging him with conspiracy to distribute “spice” under a plea agreement that requires a sentence of two years of probation. In entering his guilty plea, Thompson admitted being the manager of “The Looking Glass” under the direction of Plumlee, the owner of the business. Thompson admitted stocking and selling “incense” at “The Looking Glass” while knowing that the “incense” was “spice.”
Plumlee has entered a not guilty plea to the charges in the superseding indictment and is scheduled for trial on Sept. 8, 2014. If convicted, Plumlee faces a maximum statutory penalty of 20 years in prison. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The case was investigated by the Las Cruces office of the DEA and the Pecos Valley Drug Task Force, and is being prosecuted by Assistant U.S. Attorneys Renee L. Camacho and E. Gareth Winstead of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia 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.
Branford Paralegal Who Defrauded Mortgage Lenders Out of More Than $1.8 Million Sentenced to PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JACQUELINE POLVERARI, 47, of Branford, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for arranging a series of fraudulent mortgage loan refinancing transactions.
According to court documents and statements made in court, POLVERARI, a paralegal, owned and operated various companies that specialized in preparing real estate closing documents and conducting real estate closings for attorneys. After arranging six closings for residential real estate refinancing transactions between January 2007 and May 2009, POLVERARI kept the loan proceeds instead of disbursing the proceeds to pay off the pre-existing mortgage loans on the properties. Two of these fraudulent refinancing transactions concerned loans on her residence, in the approximate amounts of $405,000 and $403,000. The other four closings concerned loans on other people’s residences, which varied in amounts from approximately $231,000 to $302,000. Lenders lost more than $1.8 million as a result of this scheme.
Judge Arterton ordered POLVERARI to pay restitution in the amount of $1,875,563.84.
On September 20, 2012, POLVERARI pleaded guilty to two counts of bank fraud.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Henry K. Kopel.
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(203) 821-3722 [email protected]Baltimore Man Pleads to Identity Theft and Credit Card Fraud RingRead the Press Release
ALEXANDRIA, Va. – Olanrewaju Abiola, 39, of Baltimore, Maryland, pleaded guilty today to conspiracy to commit access device fraud for participating in an identity theft and credit card fraud ring that operated in the Washington, D.C. and Baltimore region.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Anthony J. Trenga.
In a statement of facts filed with the plea agreement, from at least as early as September 2010 through at least June 2012, Abiola conspired with others to purchase stolen credit card data on the Internet or through other means. This stolen data was then unlawfully loaded onto gift cards or unlawfully encoded onto other credit or debit cards through the use of device-making equipment, such as credit card encoders. The counterfeit credit cards often were embossed with aliases belonging to the members of the conspiracy, including the alias of “Sean White,” which was used by Abiola.
Abiola and his co-conspirators then took trips, sometimes together, to use the re-encoded gift, credit or debit cards to buy gift cards and other merchandise at legitimate merchant locations like Giant, Rite-Aid and Nordstrom in or around the Washington-Baltimore region. Abiola and his co-conspirators often presented counterfeit driver’s licenses displaying various aliases when requested by store clerks. The co-conspirators then returned the merchandise they purchased in order to convert the stolen data to cash.
The actions of Abiola and his co-conspirators involved more than 250 victims and resulted in at least $200,000 in actual and intended losses.Three other individuals from Baltimore previously have pleaded guilty for their roles in the identity theft and credit card fraud ring: Rameesha Smith, 30, Patrick Fagbemi, 33, and Kentrala Fulton, 35. Smith was sentenced to 38 months in prison on June 20, 2014 for her role in the scheme. Fagbemi and Fulton will be sentenced on Sept. 5, 2014 and Oct. 17, 2014, respectively. Abiola faces a maximum penalty of five years in prison when he is sentenced on Oct. 17, 2014.
This case was investigated by the FBI’s Washington Field Office. Assistant U.S. Attorney Jasmine H. Yoon is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 1:14-cr-241 (Fulton), 1:14-cr-240 (Abiola), 1:14-cr-222 (Fagbemi), and 1:14-cr-87 (Smith).
Alleged Serial Robber ChargedRead the Press Release
PHILADELPHIA - Nasir Traynham, 19, of Darby, PA, was charged today by indictment with six robberies which interfered with interstate commerce and related firearm charges, announced United States Attorney Zane David Memeger. According to the indictment, Traynham committed armed robberies at: Metro Self Storage, located at 2240 Island Avenue in Philadelphia, on June 15, 2013; Gulla’s Auto Tag & Insurance, located at 6301 Buist Avenue in Philadelphia, on June 17, 2013; Kerrs Building Materials, Inc., located at 1528 Washington Avenue in Philadelphia, on June 22, 2013; Papa John’s Pizza, located at 7 N. Lansdowne Avenue in Lansdowne, PA, on July 23, 2013; and attempted to rob the 7-Eleven, located at 501 Church Lane, Yeadon, PA, on June 26, 2013 and the Kicks USA, located at 1575 N. 52nd Street in Philadelphia, on July 11, 2013.
If convicted of the charges,thedefendant faces a maximum sentence of life in prison with a mandatory minimum term of 107 years. He also faces a maximum period of supervised release of five years, a substantial fine, a special assessment, and restitution.This case was investigated by the Federal Bureau of Investigation, Philadelphia Police Department, Colwyn Police Department, Yeadon Police Department, the Philadelphia District Attorney=s Office, and the Delaware County District Attorney’s Office It is being prosecuted by Assistant United States Attorney Ewald Zittlau.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
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PATTY HARTMAN, Media Contact, 215-861-8525Accountant Sentenced to 57 Months in Prison for Mortgage Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A California accountant was sentenced today to 57 months in federal prison and ordered to pay approximately $1.1 million in restitution for her role in a mortgage fraud scheme in southern Nevada, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Carmen Denise Mosley, 44, of Granada Hills, Calif., was sentenced by Senior U.S. District Judge Kent J. Dawson. Mosley was convicted by a jury on May 6, 2014, of one count of conspiracy to commit bank and wire fraud and two counts of bank fraud. She was permitted to self-report to prison by Nov. 3, 2014.
“As we have seen time and time again, the persons who committed mortgage fraud in Nevada were primarily employed in the housing and mortgage loan industry,” said U.S. Attorney Bogden. “They used special skills to commit these crimes, which are still impacting the Nevada economy today.”
According to the court records and evidence introduced at trial, from about November 2006 to November 2007, Mosley, a certified public accountant, and co-defendant Zulfiya Karimova, 33, of, Cupertino, California, a loan officer, conspired to obtain mortgage loans from financial institutions by causing materially false information to be placed in the buyers’ mortgage loan applications and supporting documentation. Using this scheme, Mosley and Karimova obtained money and property from the financial institutions by causing money from the loans to be disbursed to them at closing for their own use and benefit. Karimova caused buyers to apply for mortgage loans and caused their applications to contain false information about their income and assets. Mosley provided fraudulent tax documents to support the fraudulent representations in the applications concerning the buyers’ income. Mosley and Karimova caused the financial institutions to loan money to fund the purchase of three homes in the Las Vegas area during 2006 and 2007. The buyers defaulted on the loans, causing more than $1 million in losses to the lenders.
Karimova pleaded guilty prior to trial to conspiracy to commit bank and wire fraud, and bank fraud, and is scheduled to be sentenced on Aug. 20, 2014.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Sarah E. Griswold and Kathryn C. Newman.
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. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
4th Annual Micronesia Non-Profit Congress Invites U.S. Attorney to Speak at ConferenceRead the Press Release
ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), was invited to speak at the 4th Annual Micronesia Non-Profit Congress ("Congress") which was held March 31, 2014 to April2, 2014. The theme ofthis year's Congress was 'justice for all."
The Congress was sponsored by Payu-Ta, Inc., "Guam's Umbrella Association of Non-Profit Organizations." Payu-Ta's mission is to promote and strengthen member organizations' capacity and advocate for a progressive and sustainable Guam community. Payu-Ta's reach spans between Micronesia, Hawaii, and American Samoa.
U.S. Attorney Limtiaco spoke on the topic of"Preventing Human Trafficking in the Pacific Region," and shared information on the Pacific Regional Response to Combat Human Trafficking Initiative (the "Initiative"), which is a collaborative effort of the U.S. Attorney's Office for the Districts of Guam and the NMI, the National District Attorneys Association, the U.S. Department of State, the U.S. Department ofthe Interior, the Guam Human Trafficking Task Force, the NMI Human Trafficking Intervention Coalition, and other community partners. U.S. Attorney Limtiaco also discussed the intersection and relationship between human trafficking, sexual assault, child abuse, and domestic and family violence, as well as prevention and enforcement efforts in the Pacific region.
U.S. Attorney Limtiaco explained that the Initiative employs a multidisciplinary model, including participation, coordination, and collaboration among law enforcement, prosecution, victim service providers, social services, medical, mental and public health professionals, faith based organizations, educational institutions, Consulates, and other community stakeholders. She discussed the Initiative's emphasis on the establishment and provision of victim services, investigation and prosecution of human trafficking, training opportunities, community outreach/ public awareness and prevention programs, and creation of human trafficking task forces and coalitions in the Pacific region island communities. She also remarked that the Initiative provides fundamental training in human trafficking, including victimization, investigation and prosecution, prevention efforts, and other related topics to law enforcement, prosecution, victim service providers, social services, medical, mental and public health professionals, faith based organizations, educational institutions, Consulates, and other community stakeholders in the Pacific region island communities.
U.S. Attorney Limtiaco also discussed the Department of Justice's Project Safe Childhood Initiative (PSC) and child sexual exploitation in the Pacific region islands. She stressed that the threat of sexual predators soliciting children for physical sexual contact is well known and serious and that the danger of perpetrators who produce, distribute and possess child pornography is equally widespread. Both forms of child sexual exploitation have a devastating and destructive effect in our communities.
U.S. Attorney Limtiaco explained that PSC, launched in 2006, aims to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, PSC coordinates efforts to protect our children by investigating and prosecuting online sexual predators. U.S. Attorney Limtiaco closed by emphasizing that the Department of Justice and the U.S. Attorney Office are committed to the safety and well-being of every child and have placed combatting sexual exploitation of minors the highest priority.
Front Row L-R: Alicia Limtiaco, U.S. Attorney, District of Guam and the Northern Mariana Islands; Diana Calvo, Executive Director, Catholic Social Services, Guam; Lolita Munoz, Project Coordinator, WestCare Pacific Islands, Guam; Emele Duituturaga, Executive Director, Pacific Islands Association of Non Governmental Organizations (PIANGO), Fiji; Cathy Wasem, Region IX, Honolulu, Hawaii; Berni Grajek, Executive Director, Guma Mami, Inc. and Board Chair, Payu-Ta, Inc., Guam; Sandra King Young, American Samoa; Marstella Jack, Pohnpei Women's Council, Pohnpei, FSM; Liliu Maliu, Coalition Against Sexual Assault and Domestic Violence, American Samoa.
Back Row L-R: Rosendo Primo, Administrative Officer, Center for Micronesian Empowerment, Guam; Julian Aguon, attorney, Guam; James Sablan, Guam; Neal Palafox, University of Hawaii; Dick Steinberg, CEO, Westcare Foundation, Nevada; Larry Raegital, Yap, FSM; Sarah Thomas-Nededog, Vice President, WestCare Pacific Islands, Guam; Frances Sablan, Marianas Association of Non Governmental Organizations (MANGO), Saipan, CNMI; Cathy Flores, Guam Humanities Council, Guam; John O. Gonzales, MANGO, Saipan, CNMI; Shirley Lee Untalan, WestCare Pacific Islands, Guam; Kelly Jensen, WestCare Pacific Islands, Guam; Kathleen Tolosa, WestCare Pacific Islands, Guam; Alson Kelen, President, Marshall Islands Council of Non-Governmental Marshall Islands.
Pictured above are CNMI Representative
Felicidad Ogumoro; Sarah Thomas-Nededog, Vice President, WestCare Foundation, Pacific Region; and U.S. Attorney Alicia Limtiaco.John Gonzales, Executive Director of the Joeten-Kiyu Public Library in Saipan; U.S. Attorney Alicia Limtiaco; and Emele Duituturaga, Executive Director of the Secretariat for the Pacific Islands Association of Non Governmental Organizations (PIANGO) based in Suva, Fiji.
U.S. Attorney Limtiaco at the 4111 Annual Micronesia Non Profit Congress.
4 August 2014
“Ho-Hum Bandit” Sentenced to Almost Six Years in Prison for Seven San Diego Bank RobberiesRead the Press Release
United States Attorney Laura E. Duffy announced that Adam Lynch was sentenced to prison this morning in federal court in San Diego in connection with his conviction on seven counts of bank robbery. Lynch, dubbed the “Ho Hum Bandit” for his reportedly nonchalant manner in robbing banks, committed a string of bank robberies in San Diego beginning in February 2010. United States District Judge Roger T. Benitez sentenced Lynch to 70 months in prison, and ordered him to pay restitution to the victim banks.
As described in his plea agreement, Lynch committed his first bank robbery on February 27, 2010, robbing a US Bank in San Diego. He thereafter went on a spree of robberies in the area, committing his seventh on June 5, 2010. Typically, Lynch would commit the robbery by walking up to the counter, passing a note to the teller, identifying himself as being armed with a gun, and demanding cash. Lynch stole a combined total of $25,094. He did not physically injure any of the bank personnel.
Lynch’s robberies in San Diego were the start, but not the end, of his career. On May 6, 2013, in Denver, Lynch was convicted of four counts of bank robbery, based on robberies he committed in the Denver area in August 2010, December 2010, and March 2011; as well as a robbery he committed in Cheyenne, Wyoming, in November 2010. For those offenses, on April 19, 2013, Lynch was sentenced by a federal judge to 64 months in prison.
In imposing a 70-month sentence this morning, Judge Benitez ordered that 56 months of that sentence run consecutive to the 64-month sentence that Lynch had previously received, and that the remainder of today’s sentence run concurrent to the previous sentence. In other words, today’s sentence increases Defendant’s total custodial sentence to 120 months. Lynch has been in custody since his arrest on April 21, 2011, and he remains in custody.
DEFENDANT Case Number: Adam Lynch Age: 37 Corte Madera, California CHARGESBank robbery in violation of Title 18, United States Code, Section 2113(a) - Maximum penalties per count: 20 years in prison, $250,000 fine, term of supervised release of three years, restitution, and $100 special assessment.
INVESTIGATING AGENCYFederal Bureau of Investigation
*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Worcester County Man Admits to Producing Pornography Involving Two Girls Ages 10 and 12Read the Press Release
Also Possessed Over 8,000 Images and Videos of Child Pornography
Baltimore, Maryland – Laiton Blake Witkowski, age 42, of Stockton, Maryland, pleaded guilty today to producing and possessing child pornography.The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Worcester County Sheriff Reggie T. Mason, Sr.; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Worcester County State’s Attorney Beau Oglesby.
According to his plea agreement, on October 8, 2013, Witkowski used a file sharing network which enabled a law enforcement officer to download from Witkowski’s computer. After further investigation, a search warrant was executed at his residence on February 6, 2014. Computers, hard drives, other electronic devices and approximately 455 CDs and DVDs were seized, all containing, or were used to produce and store, child pornography. A computer, eMachine and electronic notebook alone contained 8,000 images and 100 videos of child pornography. The CDs and DVDs also contained thousands of images and videos of child pornography, including images and videos involving prepubescent minors, and depicting sadism, masochism and other violence.
Further analysis revealed that Witkowski had produced images and videos of child pornography of two girls in August to September of 2009. The girls were approximately 10 and 12 years old at the time. In some images one victim appears to be sleeping, and in other images, the other victim is using the bathroom, or sitting at a computer with Witkowski standing behind her in sexually explicit poses.
Witkowski faces a mandatory minimum of 15 years and a maximum of 30 years in prison for production of child pornography; and a maximum of 20 years in prison for possession of child pornography. U.S. District Judge Ellen L. Hollander scheduled sentencing for December 19, 2014 at 1:30 p.m.
As part of his plea agreement, Witkowski 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).
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 HSI Ocean City, Worcester County Sheriff’s Office, Maryland State Police Internet Crimes Against Children Task Force (ICAC) and the Worcester County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.
White Supremacists Sentenced to Life in Prison for Murderous Crime SpreeRead the Press Release
Accessories Who Obtained a Murder Weapon and Helped Pedersen and Grigsby Also SentencedPORTLAND, Ore. – David Joseph “Joey” Pedersen, 34, of Portland, was sentenced today to life in prison, without possibility of release, for carjackings resulting in the death of Cody Faye Myers, of Lafayette, Oregon, and Reginald Alan Clark, of Eureka, California in October 2011. U.S. District Judge Ancer L. Haggerty imposed two life sentences, to be served concurrently. Pedersen was previously convicted and sentenced to life in prison in Snohomish County, Washington for the related murders of his father, David Jones “Red” Pedersen, and stepmother, Leslie Mae “Dee Dee” Pedersen in September 2011.
Holly Ann Grigsby, 27, of Portland, was sentenced to life in prison, without possibility of release, on July 15, 2014, for conducting and participating in a pattern of racketeering activity, which included all four of those murders. Grigsby was not previously convicted or sentenced for any of the murders.
“Justice has been served. Both of these misguided killers will spend the rest of their lives in prison to account for these heinous murders,” said U.S. Attorney Amanda Marshall. “And because they did not act alone, the related prosecutions punish those who helped them by providing a firearm, disposing of evidence and harboring them in the middle of this ruthless crime spree. While much attention has been paid to the outrageous acts, and vitriolic words spewed by these two defendants, it’s important that we remember that these victims were human beings – son, brother, uncle, mother, sister, aunt, grandmother, father, grandfather, friend – they loved and were loved, and their loss can never be undone. In addition, because these killings were done in furtherance of a greater evil plan fueled by hate, they have harmed people in many different communities. We hope the resolution of the criminal case allows the victims’ loved ones to move beyond the frustrations of the courtroom and go forward as they redefine their lives.”
All four murders occurred during a 10-day crime spree that spanned from Everett, Washington to Eureka, California. Pedersen and Grigsby intended to embark on a white-supremacist mission to kill Jewish leaders, but they were stopped by a California Highway Patrol officer before that happened. Instead, they engaged in a series of robberies and carjackings to gather firearms and cars to further their mission. After murdering Pedersen’s father in Everett, Washington, they robbed and brutally murdered his wife, Dee Dee Pedersen. They then fled to Oregon, where they sought assistance and refuge at the home of Corey Wyatt and his then-fiancé, Kimberly Scott, in Springfield, Oregon. Wyatt and Scott led Pedersen and Grigsby to a secluded area near Lebanon, Oregon, where Pedersen, Grigsby and Wyatt pushed Red Pedersen’s stolen Jeep, with his body still inside, over an embankment. The next day, Wyatt and Scott drove Pedersen and Grigsby to the Oregon coast and dropped them off to pursue their white-supremacist mission. Near Newport, Oregon, Pedersen and Grigsby carjacked Cody Faye Myers and murdered him to eliminate a witness and avoid capture. They drove to California in Myers’ car, intending to pursue their mission in Sacramento. Now wanted for murder and concerned they were driving a stolen car, Pedersen and Grigsby carjacked and murdered Reginald Clark in Eureka, California to obtain another car for their mission and eliminate a witness.
Corey Eugene Wyatt, 29, of Springfield, Oregon, and his wife Kimberly Scott Wyatt, 33, now of Junction City, Oregon were sentenced by U.S. District Judge Garr M. King for being accessories after the fact to Pedersen and Grigsby’s transportation of Red Pedersen’s stolen vehicle. Corey Wyatt was also convicted for transferring a firearm to Pederson which, unbeknownst to Wyatt, was later used to murder Red Pedersen, Cody Myers and Reginald Clark. As convicted felons, neither Pedersen nor Wyatt could purchase a firearm, and Wyatt used his wife to obtain the firearm. Corey Wyatt was sentenced to a total of 100 months in prison on July 8, 2014. Judge King sentenced Kimberly Scott Wyatt to five years of probation on July 30, 2014.
Bryce Woods, 30, of Portland, has been convicted for an attempted carjacking he committed with Pedersen in September 2011, in which Pedersen used the same firearm he obtained from Wyatt. A sentencing hearing is scheduled before U.S. District Judge Marco A. Hernandez on September 22, 2014.
This case was prosecuted by Assistant U.S. Attorneys Jane Shoemaker, Hannah Horsley and Geoffrey Barrow.
U.s. Attorney’s Office to Take Part in National Night OutRead the Press Release
Baltimore, Maryland – The U.S. Attorney’s Office will join law enforcement and community leaders on Tuesday, August 5th at the following two events as part of the 31st Annual National Night Out crime and drug prevention event. Admission is free:5:00 p.m. to 8:00 p.m. Annapolis Walk Community Park
1701 Belle Drive
Annapolis, Maryland5:00 p.m. to 8:00 p.m. New Carrollton
8511 Legation Road, Beckett Field
New Carrollton, MarylandNational Night Out is designed to heighten crime and drug prevention awareness; generate support for and participation in local anticrime efforts; strengthen neighborhood spirit and police-community partnerships; and send a message to criminals letting them know neighborhoods are organized and fighting back. Help build a stronger, safer community by joining forces and participating in National Night Out.
“National Night Out is a perfect opportunity for neighbors to join with their law enforcement and community partners to demonstrate that citizens are standing up to criminals and neighborhoods are organizing against crime,” stated United States Attorney for the District of Maryland Rod J. Rosenstein.
Join the fun in Annapolis, which is offering a moon bounce, obstacle course, child fingerprint identification cards, K-9 demonstration, Ravens tickets raffle, honor guard, food and drinks.
"We're grateful to the U.S. Attorney's Office for their support of our National Night Out event," said Annapolis Police Chief Michael Pristoop. "Citizens, law enforcement, and community partners must work together to make a difference by fighting crime through awareness and prevention."Celebrate community and police partnerships at the festival style event in New Carrollton. Law enforcement agencies will be on hand to educate and disseminate crime-prevention materials. Activities will include live music, special appearances by the Dark Knight and Iron Man, water slides, a mechanical bull ride, face painting, balloon animals, as well as a classic car show. Child fingerprint identification kits, give-aways and free hot dogs, sno-cones, popcorn and drinks will be available.
"Law enforcement cannot fight crime alone,” said New Carrollton Police Chief David G. Rice. “It's a community effort and requires everyone's participation. Our community is the eyes and ears of the police department and National Night Out is a great platform to build trusting relationships."
National Night Out organizers are expecting over 16,000 communities and 38 million people nationwide to take part in community events on Tuesday.
U.S. Attorney for the Southern District of New York Finds Pattern and Practice of Excessive Force and Violence at New York City Jails on Rikers Island That Violates the Constitutional Rights of Adolescent Male InmatesRead the Press Release
Attorney General Eric Holder and United States Attorney for the Southern District of New York Preet Bharara announced today the completion of the Justice Department’s multi-year civil investigation pursuant to the Civil Rights of Institutionalized Persons Act (“CRIPA”) into the conditions of confinement of adolescent male inmates on Rikers Island. The investigation, which focused on use of force by staff, inmate-on-inmate violence, and use of punitive segregation during the period 2011-2013, concluded that there is a pattern and practice of conduct at Rikers Island that violates the rights of adolescents protected by the Eighth Amendment and the Due Process Clause of the Fourteenth Amendment of the United States Constitution. The investigation found that adolescent inmates are not adequately protected from physical harm due to the rampant use of unnecessary and excessive force by New York City Department of Correction (“DOC”) staff and violence inflicted by other inmates. In addition, the investigation found that DOC relies too heavily on punitive segregation as a disciplinary measure, placing adolescent inmates in what amounts to solitary confinement at an alarming rate and for excessive periods of time. Many of the adolescent inmates are particularly vulnerable because they suffer from mental illness.
Attorney General Eric Holder said: “The extremely high rates of violence and excessive use of solitary confinement for adolescent males uncovered by this investigation are inappropriate and unacceptable. The Department of Justice is dedicated to ensuring the effectiveness, safety and integrity of our criminal justice systems. Going forward, we will work with the City of New York to make good on our commitment to reform practices that are unfair and unjust, and to ensure that – in all circumstances, and particularly when it comes to our young people – incarceration is used to deter, punish, and ultimately rehabilitate, not merely to warehouse and forget.”
U.S. Attorney Preet Bharara said: “As our investigation has shown, for adolescents, Rikers Island is a broken institution. It is a place where brute force is the first impulse rather than the last resort; where verbal insults are repaid with physical injuries; where beatings are routine while accountability is rare; and where a culture of violence endures even while a code of silence prevails. The adolescents in Rikers are walled off from the public, but they are not walled off from the Constitution. Indeed most of these young men are pre-trial detainees who are innocent until proven guilty, but whether they are pre-trial or convicted, they are entitled to be detained safely and in accordance with their constitutional rights – not consigned to a corrections crucible that seems more inspired by Lord of the Flies than any legitimate philosophy of humane detention. These young men, automatically charged as adults despite their age under New York law, may be on an island and out of sight, but they can no longer remain out of mind. Attention must be paid immediately to their rights, their safety and their mental well-being, and in the wake of this report we will make sure that happens one way or another.”
In its report to the City of New York, made public today, the U.S. Attorney’s Office notes that “a deep-seated culture of violence is pervasive throughout the adolescent facilities at Rikers, and DOC staff routinely utilize force not as a last resort, but instead as a means to control the adolescent population and punish disorderly or disrespectful behavior.”
The following statistics are illustrative:
· In FY 2012, there were 517 reported staff use of force incidents in an average daily adolescent population of 791 in the Robert N. Davoren Center (RNDC) and Eric M. Taylor Center (EMTC), the two facilities that house the most adolescents. These incidents resulted in 1,059 injuries.
· In FY 2013, there were 565 reported staff use of force incidents in an average daily population at these same two facilities of 682, resulting in 1,057 injuries.
· In FY 2013, there were 845 reported inmate-on-inmate fights involving adolescents in the RNDC and EMTC. This marked an increase from the 795 reported fights in FY 2012.
· During the period April 2012 through April 2013, adolescents sustained a total of 754 visible injuries, according to Department of Health and Mental Health (DOHMH) data.
· Adolescents in RNDC and EMTC sustained a total of 96 suspected fractures from September 2011 through August 2012, according to DOHMH data.
· In FY 2013, adolescents were taken to get emergency medical services 459 times.
· In FY 2013, there were 1,118 emergency alarms in the RNDC and EMTC adolescent housing areas, or on average more than three alarms each day.
The report makes the following specific factual determinations:
· Force is used against adolescents at an alarming rate and violent inmate-on-inmate fights and assaults are commonplace, resulting in a striking number of serious injuries, including broken bones and lacerations requiring stitches;
· Correction officers resort to “headshots,” meaning blows to an inmate’s head or facial area;
· Force is used as punishment or retribution;
· Force is used in response to inmates’ verbal altercations with officers;
· Use of force by specialized response teams within the jails is particularly brutal;
· Correction officers attempt to justify use of force by yelling “stop resisting” even when the adolescent has been completely subdued or was never resisting in the first place; and
· Use of force is particularly common in areas without video surveillance cameras.
The report further identifies the following systemic deficiencies that are largely responsible for the excessive and unnecessary use of force by DOC staff. Many of these systemic deficiencies also lead to the high levels of inmate-on-inmate violence. These deficiencies include:
· Inadequate reporting by staff of the use of force, including false reporting;
· Inadequate investigations into the use of force;
· Inadequate staff discipline for inappropriate use of force;
· An inadequate classification system for adolescent inmates;
· An inadequate inmate grievance system;
· Inadequate supervision of inmates by staff;
· Inadequate training both on use of force and on managing adolescents; and
· General failures by management to adequately address the extraordinarily high levels of violence perpetrated against and among the adolescent population.
Finally, DOC’s use of prolonged punitive segregation for adolescent inmates is excessive and inappropriate. Adolescent inmates, many of whom have mental illnesses, are routinely placed in what amounts to solitary confinement for weeks and sometimes months at a time. On any given day in 2013, 15-25 percent of the adolescent population were in punitive segregation, often for infractions involving non-violent conduct. According to census data for December 16, 2013, well over half the adolescents in punitive segregation on that day were serving sentences for rule infractions of 60 days or more.
The report also sets forth the following 10 categories of remedial measures necessary to address the constitutional violations identified:
1. House adolescent inmates separately in a DOC jail not physically located on Rikers Island;
2. Increase the number of cameras in adolescent areas;
3. Revise use of force policy to clarify prohibited conduct;
4. Ensure that staff submit complete, accurate, and prompt use of force reports, and institute a zero-tolerance policy for failing to report;
5. Ensure that use of force incidents are investigated thoroughly and promptly, and hold staff accountable for biased or incomplete reports and investigations;
6. Ensure that inmates are adequately supervised, intervene to de-escalate fights, and transfer vulnerable or otherwise at risk inmates to alternative housing units;
7. Improve officer training programs on use of force, conflict resolution, reporting use of force, and handling of the adolescent population;
8. Ensure that staff are held accountable and disciplined for the use of excessive and unnecessary force;
9. Develop alternative disciplinary strategies that do not involve lengthy isolation, and prohibit the placement of adolescents with mental health disorders in solitary confinement;
10. Develop and implement a strategic plan to create an institutional culture that does not tolerate violence and holds staff accountable for excessive or unnecessary use of force.
The U.S. Attorney’s Office for the Southern District of New York looks forward to engaging in discussions with the City to make system-wide changes that will safeguard the constitutional rights of adolescents, and prevent them from continuing to suffer unnecessary harm while in City custody.
U.S. Attorney Bharara thanks the Board of Correction for the assistance it provided in connection with the Office’s investigation.
This case is being handled by the Civil Rights Unit of the U.S. Attorney’s Office for the Southern District of New York. Assistant U.S. Attorneys Emily E. Daughtry and Jeffrey K. Powell are in charge of the case.
Two North Carolina Residents Plead Guilty to Defrauding Elderly Through Offshore Sweepstakes SchemeRead the Press Release
A North Carolina couple pleaded guilty for leading a Costa Rican sweepstakes fraud scheme that defrauded hundreds of elderly Americans.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Anne M. Tompkins of the Western District of North Carolina made the announcement.
Jessica Anne Brown, 39, of Greensboro, North Carolina, pleaded today in federal court in Charlotte, North Carolina. Her husband, Jason Dean Brown, 41, formerly of Burleson, Texas, pleaded guilty on July 30, 2014. The Browns pleaded guilty to wire fraud, conspiracy to commit wire fraud and conspiracy to commit money laundering.
According to the plea agreement, from November 2004 through March 2013, Jessica and Jason Brown owned, operated and worked in sweepstakes call centers located in Costa Rica. The Browns and their co-conspirators placed telephone calls to U.S. residents, many of whom were elderly, and falsely informed them that they had won a substantial cash prize in a sweepstakes. The victims were told that in order to receive the prize, they had to send money to Costa Rica for a purported refundable insurance fee. After receiving the fee, the Browns and their co-conspirators contacted the victims again, and falsely informed them that the prize amount had increased, either because of a clerical error or because another prize winner was disqualified, and therefore the victims had to send additional money to pay for new purported fees, duties and insurance to receive the now larger sweepstakes prize. The attempts to collect additional money from the victims continued until a victim either ran out of money or discovered the fraudulent nature of the scheme. To mask that they were calling from Costa Rica, the Browns and their co-conspirators utilized VoIP phones that displayed a (202) area code, giving victims the false impression that the calls were coming from Washington, D.C. The Browns often falsely claimed that they were calling on behalf of a U.S. federal agency to lure victims into a false sense of security.
The defendants admitted that, along with their co-conspirators, they were responsible for causing more than $840,000 in losses to hundreds of United States citizens.
Jason and Jessica Browns were indicted by a federal grand jury on Nov. 15, 2012. Sentencing will be scheduled at a later date.
The case was investigated by the U.S. Postal Inspection Service, the FBI, the Internal Revenue Service Criminal Investigation Division, the Federal Trade Commission and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Miami Office. This case is being prosecuted by Senior Litigation Counsel Patrick Donley and Trial Attorney William Bowne of the Criminal Division’s Fraud Section.Two Men Who Helped Set Illegal Campfire in Angeles National Forest That Became Colby Fire Sentenced to Federal PrisonRead the Press Release
LOS ANGELES – Two men involved in setting an illegal campfire above Glendora that erupted out of control to become the destructive Colby Fire were sentenced today to federal prison.
At today’s hearing, Clifford Eugene Henry Jr, 22, of Glendora, received a prison term of 6 months, plus a three-year term of supervised release, and Steven Robert Aguirre, 21, of Baldwin Park, received a prison term of 5 months, plus a three-year term of supervised release, from United States District Judge George H. Wu.
Clifford Henry and Steven Aguirre were tried together in May and each was found guilty of four charges (one felony and three misdemeanors) related to the fire. At today’s hearing, the government agreed to dismiss one of the misdemeanor charges.
One other defendant in the case, Jonathan Carl Jarrell, was also found guilty of a felony offense of unlawfully setting timber afire and a misdemeanor offense of illegally starting a fire. Jarrell is scheduled to be sentenced by Judge Wu later this month.
The Colby Fire started on the morning of January 16. By that evening, the fire had consumed more than 1,700 acres of federal, state, local and private lands. The fire destroyed six residences, damaged eight other residences and 17 additional structures, and resulted in injuries to one civilian and two firefighters. Prosecutors argued that the damages and costs associated with fire-fighting efforts were in excess of $6,000,000.
Henry and Aguirre were detained by Glendora Police Officers after they were seen fleeing from area of the fire in a flood control channel. During interviews with Glendora Police and personnel with the Los Angeles County Fire Department’s Arson Investigations Unit – interviews that the jury heard during the trial – both defendants admitted playing a role in the starting the illegal campfire that led to the Colby Fire after wind blew burning paper into the brush in the hills above Glendora. Strong Santa Ana winds drove the fire into the residential communities below the hills.
A United States Forest Service fire investigator determined that the origin of the Colby Fire was at a point near a fire ring built by the three men at a location on federal lands within the Angeles National Forest.
“The devastation directly caused by defendants conduct points to the incredible seriousness of their offense,” prosecutors wrote in a brief filed in relation to the sentencing. “But the fact that it could have been worse underscores that degree of seriousness. But for the quick thinking and courageous reactions of the Glendora and Azusa Police Departments to evacuate the residents in harm’s way; but for the heroic actions of individual fire fighters, helicopter pilots and aircraft tanker pilots in battling the blaze; but for the winds dying down and the humidity increasing…this could have been so much worse.”
The investigation in this case was conducted by the United States Forest Service, the Glendora Police Department, the Azusa Police Department, the Los Angeles County Fire Department’s Arson/Fire Investigation Unit, and CAL FIRE.
Release No. 14-102
Tulalip Tribal Member Sentenced to 15 Years in Prison for Second Degree Murder in Death of ToddlerRead the Press Release
An enrolled member of the Tulalip Tribes was sentenced today in U.S. District Court in Seattle to 15 years in prison and five years of supervised release for second degree murder and criminal mistreatment in the death of one daughter and the neglect of the second, announced U.S. Attorney Jenny A. Durkan. CHRISTINA D. CARLSON, 38, was indicted by the grand jury last May and pleaded guilty in April 2014, following the October, 2012 death of her 19-month-old daughter and the neglect of her 33-month-old daughter. At sentencing U.S. District Judge James L. Robart said, “The details of the murder and mistreatment are nauseating…. She knew she needed to care for her children and she chose not to.”
CARLSON has been in federal custody at the Federal Detention Center at SeaTac, Washington, since January 11, 2013. The criminal complaint and plea agreement describe how on October 8, 2012, emergency crews were called to an address on Marine Drive NE on the Tulalip Tribal Reservation where CARLSON was performing CPR on her 19-month-old daughter who was unresponsive on a blanket on the ground. The child was unconscious, not breathing and covered in urine and feces. A second child, a 33-month old girl, was found strapped in her car seat in a nearby vehicle. The child was pale, unresponsive and covered in urine and feces. The girl was transported to the hospital and later recovered. The 19-month old child died and the Snohomish County Medical examiner classified the manner of death as homicide by parental neglect. According to the report the child was malnourished and dehydrated, weighing only 19 pounds. The child’s skin in the diaper area was excoriated and infested with maggots. Her hair was infested with lice.
The investigation revealed that CARLSON had been living in the car with the girls on the property since mid-September. On October 8, 2012 CARLSON had left the girls in the car while she went to use a phone at the residence on the property. CARLSON admits in her plea agreement that she was away from the car for several hours, attempting to obtain drugs for her personal use. About 20 minutes after the neighbors told her to go back to the car and her children, CARLSON returned asking them to call 9-1-1 because the youngest child was unresponsive.
The case was investigated by the Tulalip Tribal Police and the FBI. The case was prosecuted by Assistant United States Attorney J. Tate London.
Topeka Man Pleads Guilty to CarjackingRead the Press Release
TOPEKA, KAN. – A Topeka man pleaded guilty in federal court in Topeka Monday to a carjacking charge, U.S. Attorney Barry Grissom said.
Shaun Lee Kendall, 29, Topeka, Kan., pleaded guilty to one count of carjacking. In his plea, Kendall admitted that on Jan. 29, 2014, he and a co-defendant threatened a driver with violence in order to steal a 1999 Dodge Dakota truck.
Sentencing is set for Oct. 27. He faces a maximum penalty of 15 years in federal prison and a fine up to $250,000. Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Co-defendant Michael Richard Wilkins is awaiting trial.
Six Arrested During Identity Theft InvestigationRead the Press Release
GREENEVILLE, Tenn. - Elias Reyes, Mario L. Lopez, Bobbie Arvizu, Jose Diaz Ortiz (a.k.a. Chepe), William Perez-Perez, and Jesus Orduna-Valencia, were all arrested in Morristown, Tenn., on charges involving the production of false documents which appeared to be issued by the United States.
On Aug. 4, 2014, these individuals had initial appearances before U.S. Magistrate Judge Dennis H. Inman, who scheduled preliminary hearings for Aug. 18, 2014.
Additionally, Perez-Perez and Orduna-Valencia were arrested for illegal reentry into the United States after a prior deportation. They are scheduled to appear in U.S. District Court at 9:30 a.m., Aug. 7, 2014.
In August 2014, Bureau of Immigrations and Customs Enforcement (ICE) officers executed federal search warrants at two businesses and one residence in Morristown, Tenn. The search warrants were part of an ongoing investigation into identity theft, employment fraud and other federal crimes in the Morristown area.
Details of the charges are outlined in the arrest warrant and supporting affidavit on file with U.S. District Court in Greeneville. The affidavit alleges that Reyes, Lopez, Arvizu, and Ortiz (a.k.a. Chepe) were involved in the production or transfer of false documents, including social security cards, driver’s licenses, immigration documents, and birth certificates. Ortiz ran a market and was selling false documents from the business. Arvizu worked at Q.S.I., a business in Morristown, and was arrested for selling identifiers of victims to be used to produce fraudulent documents for employment, or other fraudulent purposes.
The investigation and arrests were conducted by agents of the Tennessee Highway Patrol- Identity Crimes Unit, Morristown Police Department, Homeland Security Investigations, Enforcement and Removal Operations Unit of ICE, Tennessee Bureau of Investigation, and Internal Revenue Service. Assistant U.S. Attorney Robert Reeves represented the United States.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Six Alleged Members of the Almighty Imperial Gangsters Nation Gang IndictedRead the Press Release
Five alleged members of the violent Almighty Imperial Gangsters Nation gang have been indicted by a federal grand jury in the Southern District of Florida for their roles in multiple murders. A sixth alleged gang member was indicted for unlawfully possessing a firearm.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
“According to charges unsealed today, members of the Almighty Imperial Gangsters Nation committed multiple murders and racketeering crimes, injecting violence and chaos into communities in Chicago, Miami and Indiana,” said Assistant Attorney General Caldwell. “Gang violence is a serious, nationwide problem, and the Department pursues a nationwide strategy, working with federal, state, and local law enforcement to dismantle the gangs and stop the bloodshed.”
The indictment returned by a federal grand jury on July 31, 2014, and unsealed today charges Jose Herrera, aka “Spyro,” 27, Leonel Carrera, aka “Leo,” 25, Victor Lopez, aka “Magic,” 28, Ramon Madruga, aka “Porky,” 28 and Alex Enrique Somarriba, aka “A-Rock,” 27, all of Miami, with conspiracy to participate in racketeering activity, including murder. Brandon Foeman, aka “Drama,” 28, of Weston, Florida, was charged with being a felon in possession of a firearm. The six defendants are in custody.
According to the indictment, Herrera, Carrera, Lopez, Madruga and Somarriba are members of the Almighty Imperial Gangsters Nation, which is a nationally-known organized street gang that originated in the northwest side of Chicago and spread to other regions of the United States, including South Florida. Members and associates of the Almighty Imperial Gangsters Nation allegedly engaged in acts of violence, including murder, attempted murder, battery, aggravated battery, and aggravated assault, as well as narcotics distribution and other criminal activities. Specifically, the indictment charges that the gang is responsible for three murders in Miami, one in Chicago and one East Chicago, Indiana, including the murders of Rivky Josma on Aug. 4, 2006,Hockynson Sanchez on Nov. 20, 2007, and Mauricio Waikay on Feb. 25, 2011.
This case is being investigated by the FBI field offices in Miami and Chicago, and the FBI and Bureau of Alcohol, Tobacco, Firearms and Explosives field offices in Merrillville, Indiana, along with the Miami-Dade Police Department, the City of Miami Police Department, the Chicago Police Department, the Franklin Park, Illinois, Police Department, and the East Chicago Police Department. The Florida Department of Corrections and the Broward County Sheriff’s Office assisted with this case.
The case is being prosecuted by Joseph A. Cooley and Rebecca A. Staton of the Criminal Division’s Organized Crime and Gang Section, as well as the Forfeiture Section of the U.S. Attorney’s Office for the Southern District of Florida, with the assistance of the U.S. Attorney’s Office for the Northern District of Indiana and the State Attorneys’ Offices for Miami-Dade and Broward Counties.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.Rochester Man Charged in Sex Trafficking CaseRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Harris Hickman, 31, of Rochester, N.Y., was arrested and charged by criminal complaint with sex trafficking of a minor and sex trafficking using force fraud or coercion. Sex trafficking of a minor carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of life, and a fine of $250,000. Sex trafficking using force, fraud or coercion carries a mandatory minimum penalty of 15 years in prison, a maximum penalty of life and a fine of $250,000.
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.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that according to the complaint, a woman reported that Hickman had used force to coerce her to engage in prostitution activities. In addition, Hickman posted advertisements for the prostitution using Backpage.com. The woman also reported that the defendant got a fifteen year old minor involved in prostitution using Backpage.com as well.
The criminal complaint is the culmination of an investigation on the part of the Federal Bureau of Investigation's Cyber Crimes Task Force, which includes the Monroe County Sheriff's Office, under the direction of Sheriff Patrick O'Flynn, the Rochester Police Department, under the direction of Chief Michael Ciminelli, and Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, Special Agent in Charge.