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1 August 2014
York Springs Man Charged with Workers' Compensation FraudRead the Press Release
The U.S. Attorney's Office for the Middle District of Pennsylvania announced that a criminal information was filed in U.S. District Court in Harrisburg yesterday charging Robert M. Fowler, 60, of York Springs, Pennsylvania, with workers' compensation fraud involving $24,934.68 of benefits he was not entitled to receive. If convicted, Fowler faces up to five years' imprisonment, $250,000 in fines and restitution. A plea agreement was also filed indicating that Fowler intends to plead guilty when he appears for his arraignment in federal court. The plea agreement is subject to approval by the Court
According to U.S. Attorney Peter Smith, Fowler allegedly sustained an on-the-job injury in 1999 while working at the Defense Industrial Plant Equipment Center in Mechanicsburg, Pennsylvania, and began receiving federal workers' compensation benefits from the Office of Workers' Compensation Programs (OWCP) shortly thereafter. Recipients of these benefits are required to submit forms to OWCP on a periodic basis to insure they are still eligible to receive the benefits.
The criminal charge filed today allegedly indicates that Fowler lied on several forms he submitted to OWCP because he falsely claimed he was not incarcerated during the prior 15 months for a felony and was residing with his wife. In fact, Fowler was in the Adams County Jail between September 2012 and July 2013 and had not resided with his wife between October 2010 and March 2014. As a result of the false statements, OWCP paid Fowler $24,934.18 which he was not entitled to receive.
The case was investigated by the U.S. Department of Labor, Office of Inspector General, and is assigned to Senior Litigation Counsel Bruce Brandler for prosecution.
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.
Week in Review - South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- David G. Perry, 59, of South Bend, Indiana was sentenced to 15 months imprisonment and 2 years supervised release after pleading guilty to the felony offense of possession of a firearm as a convicted felon. According to documents filed in this case, Perry possessed a Smith & Wesson 9mm semi-automatic pistol. Perry had previously been convicted of several offenses including driving while intoxicated and possession of a firearm as a convicted felon. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Donald Schmid.
- Eshar Burks, 26, of South Bend, Indiana was sentenced to 18 months imprisonment and 3 years supervised release after pleading guilty to the felony offense of possessing crack with the intent to distribute. According to documents filed in this case, Burks possessed over 100 baggies containing a white substance later identified as crack. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review - HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
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Jennifer Grcich, 38, of Cedar Lake, Indiana pled guilty to the felony offense of theft from a federally funded organization. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Philip Benson.
- Rolando Luis Diaz, 31, of Whiting, Indiana pled guilty to the felony offense of intentionally distributing cocaine and possession of a firearm and ammunition. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation. Sentencing has been set for 10/30/14. This case is being prosecuted by Assistant United States Attorney Nick Padilla.
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Jane Woynaroski, 58 years old, of Valparaiso, Indiana pled guilty to the felony offense of theft from a federally funded organization. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation. Sentencing has been set for 10/15/14. This case is being prosecuted by Assistant United States Attorney Philip Benson.
- Jerome Harris, 50, of Gary, Indiana pled guilty to the felony offense of being a felon in possession of a firearm. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for 11/6/2014. This case is being prosecuted by Special Assistant United States Attorney Armando Salinas.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
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Beaver Bernard Russell, 50, of Chicago, Illinois was sentenced to 140 months imprisonment, 2 years supervised release and to pay $4,520 in restitution after pleading guilty to the felony offense of bank robbery. According to documents filed in this case, on January 5, 2012, Russell robbed a South Bend, Indiana bank. On January 12, 2012, Russell robbed another bank located in Munster, Indiana. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney David Nozick.
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Joseph B. Miller, 50, of Chicago, Illinois was sentenced to 225 months imprisonment, 3 years supervised release and to pay $5,606 in restitution after being found guilty of the felony offense of bank robbery. According to documents filed in this case, Miller robbed a Hammond, Indiana bank on December 13, 2012. Miller was subsequently arrested, tried and found guilty by jury on June 25, 2013. This case was the result of an investigation by the Federal Bureau of Investigation and the Hammond Police Department. This case was prosecuted by Assistant United States Attorneys Jacky Jacobs and Diane Berkowitz.
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Christopher Bynum, 27, of Gary, Indiana was sentenced to 41 months imprisonment and 3 years supervised release after pleading guilty to the felony offense of conspiracy to distribute marijuana. According to documents filed in this case, as a result of a joint federal investigation, Bynum was arrested for his participation in a widespread marijuana trafficking organization. This case was the result of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Internal Revenue Service. This case was prosecuted by Assistant United States Attorney Jacky Jacobs.
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Week in Review - Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Yohansen Fincher, 27, of Fort Wayne, Indiana was sentenced to 48 months imprisonment and 1 year supervised release after pleading guilty to the felony offense of knowingly or intentionally using a communication facility to facilitate a drug offense. According to documents filed in this case, this investigation resulted from a court approved federal wiretap which led to the identification of individuals involved in drug supply organizations. Specifically, the interceptions over Fincher’s telephone led to a delivery amount of 450 grams of cocaine. This case was the result of an investigation by the Federal Bureau of Investigation, and the Fort Wayne Safe Streets Task Force comprised of FBI special agents, and officers from the Indiana State Police, Allen County Police Department, and Fort Wayne Police Department. Fort Wayne Police Department Vice and Narcotics Division and Gant Unit, Allen County Drug Task Force, United States Marshal’s Service, New Haven Police Department, Orange County California Regional Narcotics Suppression Program, San Bernardino County, California Sheriff’s Department, and the Kanas City, Missouri Police Department Drug Interdiction Unit were also law enforcement agencies who assisted with this investigation. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
- Eddie L. Carlisle, 26, of Fort Wayne, Indiana, was sentenced to 57 months imprisonment and 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, officers responded to a party-armed call and while heading to the reported location, officers were advised that a person was in the street firing a gun. Upon their arrival, officers observed an individual matching Carlisle’s description bend over near the front left tire of a parked vehicle and then stand back up. Officers believed that Carlisle may have placed something near the vehicle. Officers found a handgun at the spot where Carlisle had just been seen and he was taken into custody. The gun had previously been reported stolen. Carlisle had a prior conviction for the federal offense of possession with the intent to distribute a controlled substance. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
- Travon Russell, 22, of Fort Wayne, Indiana, was sentenced to 24 months imprisonment and 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, based on a controlled purchase of marijuana by a confidential informant, a warrant was issued for Russell’s residence. During the search of the residence, firearms, ammunition and controlled substances were located. After being advised of his Miranda Rights, Russell admitted that the items found in the residence belonged solely to him. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
United States Attorney’s Office Announces Sentence in Gun Smuggling OperationRead the Press Release
Guns from local firearm dealers were sent to Central America for resale
INDIANAPOLIS– Acting United States Attorney Josh J. Minkler, today announced the conviction and sentencing of an Indianapolis man for making false statements in connection with the purchase of firearms and then unlawfully exporting those firearms from the United States to Honduras. Alex Martinez, 41, of Indianapolis, was sentenced to 39 months in federal prison by U.S. District Judge Tanya Walton Pratt.
“Those who choose to make illegal straw purchases of firearms will be held strictly accountable,” said Acting United States Attorney Josh J. Minkler.
This joint investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) and the Department of Homeland Security, Homeland Security Investigations (“HSI”) began in May of 2010, when law enforcement authorities in Puerto Cortez, Honduras, discovered three identical, stainless steel, Beretta 9 millimeter handguns, wrapped in foam and duct tape, concealed inside a plastic, three-drawer compact disk (cd) organizer inside a cardboard box containing miscellaneous clothing and other personal items. Honduran authorities determined that the shipment of personal belongings had come from the United States, and specifically from Martinez.
A subsequent ATF trace of the three Berettas recovered in Honduras revealed that all three were purchased by Martinez in Greenwood, Indiana, in April of 2010. Further investigation by ATF and HSI revealed that between 2006 and 2010, Martinez purchased 28 handguns from federally licensed gun dealers in the Indianapolis area. Nine of those firearms were later confirmed to have subsequently been registered to various individuals in Honduras.
On June 16, 2011, ATF and HSI agents executed a federal search warrant at Martinez’ residence in Indianapolis. Agents did not find any firearms at Martinez’ residence, however Martinez admitted he had purchased the 28 handguns, shipped some of the weapons to Honduras himself, and sold some of the firearms to individuals who Martinez knew intended to ship them to Honduras. Martinez further admitted that he did not have a license to export firearms from the United States and that he knew it was wrong to export the weapons in the manner he did.
In imposing the sentence that she did, Judge Pratt found that the crimes charged in this case were exceedingly serious, particularly given the destination of the weapons. In reaching that conclusion, the Court noted that Honduras has had the highest homicide rate in the world since 2010, according to the U.S. State Department.
"ATF's mission is to remove from our communities those who would engage in or enable violent crime," stated Special Agent in Charge Michael Boxler.
"This sentence is a direct result of the dedicated efforts of HSI and our ATF partners to create a safer community for the citizens of Indiana," said Special Agent in Charge Gary Hartwig, of HSI Chicago. "Arresting those who attempt to illegally smuggle weapons out of the U.S. is an HSI priority."
According to Assistant United States Attorney Mathew Rinka, who prosecuted this case for the government, Martinez must pay a $5000 fine and serve two years of supervised release following his sentence.
Two Maryland Fishermen Plead Guilty to Illegal Fish Harvesting Conspiracy in the Chesepeake BayRead the Press Release
Michael D. Hayden, 41, and William J. Lednum, 42, both of Tilghman Island, Maryland, pleaded guilty today to conspiring to violate the Lacey Act and to defraud the United States through their illegal harvesting and sale of striped bass, announced Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division Sam Hirsch, U.S. Attorney for the District of Maryland Rod J. Rosenstein; Superintendent of the Maryland Natural Resources Police Colonel George F. Johnson IV and Regional Special Agent in Charge for the U.S. Fish & Wildlife Service Honora Gordon.
“These defendants admitted to systematically plundering the Chesapeake Bay of an important and protected natural resource, and at the expense of the many honest fishermen who play by the rules,” said Acting Assistant Attorney General Hirsch. “The Justice Department is committed to enforcing environmental laws that protect our shared natural resources and sustain the vital marine life of the Chesapeake Bay for future generations.”
According to their plea agreements, Hayden and Lednum were “captains” on fishing vessels owned by them, William J. Lednum Fisheries d/b/a Michael D. Hayden Jr. and Michael D. Hayden, Jr., Inc. The defendants also employed numerous “helpers” as part of this scheme, including co-defendant Kent Sadler.
From at least 2007 to 2011, Hayden and Lednum illegally harvested, possessed, falsely labeled and/or sold at least 185,925 pounds of striped bass. They used illegally weighted and/or anchored gill nets, left the nets in the water overnight, and set the nets during times when the commercial striped bass gill-netting season was closed. The defendants exceeded their maximum daily vessel limit of striped bass and either unloaded the surplus onto an anchored vessel or paid others a fee to check-in fish for them. Hayden and Lednum falsified the permit allocation cards and daily catch records for their striped bass fishing trips to over-report the numbers of striped bass caught and under-report the weights. This allowed them to request additional state tags under false pretenses and therefore harvest additional striped bass illegally.
Hayden and Lednum shipped and sold $498,293 worth of striped bass to wholesalers in New York, Pennsylvania, Delaware and Maryland. None of the fish was properly reported at check-in stations or on the permit allocation cards of daily catch records submitted to the state of Maryland. Maryland in turn submits such paperwork to numerous federal and interstate agencies responsible for setting harvest levels all along the eastern seaboard.
The investigation in this case started in February 2011 when the Maryland Department of Natural Resources found tens of thousands of pounds of striped bass snagged in illegal, anchored nets before the season officially reopened. The conspirators were seen on the water in the vicinity of the illegal nets. The subsequent investigation unveiled a wider criminal enterprise to which Hayden and Lednum pleaded guilty today. Co-defendant Kent Conley Sadler, 31, also of Tilghman Island, previously pleaded guilty to his participation in the conspiracy and is scheduled to be sentenced on Oct. 21, 2014.
Hayden and Lednum face a maximum sentence of five years in prison and a $250,000 fine. The defendants have agreed to pay restitution to the state of Maryland of between $498,293 and $929,625. The defendants have further agreed to forfeit the monetary equivalent of 80 percent of the value of the vessel primarily used during the conspiracy. U.S. District Judge Richard D. Bennett scheduled sentencing for Hayden and Lednum on Nov. 4 and Nov. 5, 2014 respectively.
This case was investigated by investigators from the Maryland Department of Natural Resources and special agents with the United States Fish and Wildlife Service. The case is being prosecuted by Assistant U.S. Attorney Michael Cunningham, of the District of Maryland, and Todd W. Gleason and Shennie Patel of the Environmental Crimes Section of the Environment and Natural Resources Division of the U.S. Department of Justice.Two Lummi Tribal Members Charged with Dealing Heroin and MethamphetamineRead the Press Release
Two members of the Lummi Indian tribe are charged federally with drug distribution following an undercover investigation by the Lummi Police Department and the FBI, announced U.S. Attorney Jenny A. Durkan. A married couple, TANYA JEFFERSON, 44, and JOHN JEFFERSON, 37, are charged in a criminal complaint with conspiracy to distribute controlled substances. The complaint alleges that on five different occasions in April 2013, the JEFFERSONs sold heroin or methamphetamine to a person working with law enforcement. TANYA JEFFERSON is making her initial appearance in U.S. District Court in Seattle today. JOHN JEFFERSON is still being sought by law enforcement.
“Heroin abuse is a growing problem throughout Western Washington, with an alarming increase in overdose deaths,” said U.S. Attorney Jenny A. Durkan. “Yesterday Attorney General Holder announced plans for federal law enforcement agents to carry the drug naloxone to deal with overdoses. I applaud the Lummi Tribe for already equipping their officers with the drug to counteract heroin overdoses.”
Tribal Chairman Timothy J. Ballew, II issued the following statement:
“The Lummi Nation, a community of about 5,000 citizens, is responding to an epidemic of drug overdose and death due to illegal drug use by community members of all backgrounds. With funding from the Lummi Indian Business Council, the Lummi Nation Police Department has made the investigation of drug trafficking and sales a top priority. With the assistance of the Federal Bureau of Investigation and the U.S. Attorney’s Office for the Western District of Washington, more high level dealers are facing significant incarceration.
Medical professionals at the Lummi Nation have also made significant strides to limit access to prescription drugs by patients seeking prescription medications for illicit use. The Nation has seen a massive shift to cheap and prevalent heroin as the availability of prescription narcotics diminishes. In partnership with Lummi public health agencies, Lummi Nation police officers have been trained to administer naloxone, an opioid blocker to help prevent needless deaths in the community. Officers are trained to recognize the signs and symptoms of a citizen experiencing a life threatening heroin or opioid overdose. In the first six weeks of the program, officers have successfully administered naloxone in three overdose situations. Naloxone doesn’t substitute for emergency care but provides more time for medical units to arrive and treat the victim.”
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Lummi Police Department and the FBI. The case is being prosecuted by Assistant United States Attorney Jerrod Patterson.
Two Associates of La Cosa Nostra Sentenced for the July 2, 2010 Robbery and Murder of A Brooklyn BusinessmanRead the Press Release
Earlier today, Louis Grasso and Richard Riccardi were sentenced before Judge John Gleeson in U.S. District Court in Brooklyn, New York, to 38 and 36 years in prison, respectively, for the robbery and murder of James Donovan on July 2, 2010. The defendants were convicted after trial in March 2014.
The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James J. Hunt, Acting Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division.
“For more than 20 years, these defendants have preyed on our community by engaging in narcotics and firearms trafficking, burglary, and, most recently, robbery and murder,” stated United States Attorney Lynch. “The sentences imposed appropriately reflect both the seriousness of the crimes of conviction and the long history of crimes that these recidivist offenders have committed.”
According to the government’s trial evidence, and as recounted in the government’s sentencing memorandum, the defendants, along with two other associates, robbed and murdered Donovan, who operated a check-cashing business, in front of an auto body shop in the Gravesend section of Brooklyn. The plan to rob Donovan was hatched by Riccardi, who recruited Grasso and two other men into the scheme. Riccardi supplied the men with loaded firearms to use in the robbery and agreed to drive the “crash car,” used to block off or delay law enforcement pursuing the robbery crew.
During the course of the robbery, the defendant Grasso, with a co-conspirator, ambushed Donovan, pointed a gun at him, and grabbed a bag full of cash and checks from Donovan’s car. When Donovan tried to flee, the co-conspirator shot him in the leg, severing Donovan’s femoral artery. Donovan died of his wounds later that day. Grasso, Riccardi, and the co-conspirators sped off with approximately $200,000 in cash, which they later divided among themselves.
Law enforcement subsequently recovered from Riccardi’s home firearms, ammunition, a ballistic vest, and narcotics trafficking paraphernalia, among other items. A search of Grasso’s home and garage also yielded firearms, ammunition, masks, and a list of police radio codes. Riccardi has prior federal convictions for narcotics trafficking and possession of firearms. Grasso has prior federal convictions for bank larceny, burglary, and narcotics trafficking.
The government’s case was prosecuted by Assistant United States Attorneys Nicole M. Argentieri and Darren LaVerne.
The Defendants:
RICHARD RICCARDI
Age: 41
LOUIS GRASSO
Age: 46
Thirty-three People Indicted for Drug Trafficking and Distribution of HeroinRead the Press Release
A 40-count indictment was filed in U.S. District Court charging 15 people for their roles in a conspiracy that brought heroin from Chicago to be sold around Ravenna and Akron, law enforcement officials announced today.
An additional 18 people were indicted in the Portage County Court of Common Pleas on related state charges including trafficking in heroin, trafficking in cocaine, trafficking in marijuana, illegal manufacture of methamphetamine, permitting drug abuse and child endangering.
The arrests and indictments were announced by U.S. Attorney for the Northern District of Ohio Steven M. Dettelbach, Portage County Prosecutor Vic Vigluicci, FBI Special Agent in Charge Stephen D. Anthony, ATF Special Agent in Charge Michael Boxler, Akron Police Chief James Nice, Portage County Sheriff David Doak and Summit County Sheriff Steve Barry.
All 15 people indicted in federal court face a charge of conspiracy to possess with intent to distribute heroin. Additional counts include distribution of heroin, maintaining houses as drug premises, possession of firearms during drug trafficking crimes, being a felon in possession of firearms and ammunition, possession with intent to distribute cocaine and related charges.
Those indicted in federal court are:
Rashid L. Carter, 29, of Akron; Andre G. White, 36, of Streetsboro; Laverne Eugene Fortson, 40, of Akron; Andre S. Brumley, 29, of Akron; Hershell D. Hill, 31, of Ravenna; Jasmine M.A. Sanders, 22, of Massillon; Chanda E. Wilson, 44, of Chicago; Shem S. White, 31, of Akron; Jessica L. Money, 37, of Akron; Austin Marshall, 31, of Stow; Algyn M. Kerney, 33, of Akron; Walter Collins III, 41, of Ravenna; Michelle L. Spencer, 32, of Akron; Marvin R. Sanders, 26, of Kent, and Keith E. Krause, 32, of Kent.
“Heroin abuse is an epidemic in our community that takes lives and destroys families,” Dettelbach said. “We will continue to target drug traffickers while also working to reduce demand and get treatment for those who need it.”
“These individuals collaborated to deliver poison to our streets and we collaborated to bring them to jail,” Anthony said. “This takedown is another outstanding example of what can be accomplished when local, state and federal agencies work together to protect our community.”
“This is an example of our working relationships with other law enforcement in the community to attack our most serious problem,” Nice said.
“It is important that we coordinate our efforts if we are to make a dent in this flood of heroin which these criminals are bringing into our counties,” Vigluicci said.
“ATF's mission is to identify, pursue, and perfect criminal cases against individuals who illegally possess and use firearms in furtherance of their criminal activities,” said ATF Special Agent in Charge Michael Boxler. “We will continue to work with the FBI, the U.S. Marshals Service, the Akron Police Department’s Drug Unit, the Portage County Sheriff’s Office Drug Unit and others to ensure that those who foster violence in this region are held to account for their activities.”
“This operation is an example of the proactive/zero-tolerance approach we are taking in response to the heroin epidemic,” Barry said. “It is crucial to shut down the dealers and get the heroin off of our streets.”
According to the federal indictment:
The conspiracy took place from as early as September 2013 and continuing through July 2014. During that time, Andre G. White supplied heroin to Laverne Eugene Fortson and Rashid L. Carter. In turn, Fortson and Carter provided heroin to Andre T. Brumley for distribution in and around Akron and Ravenna.
Carter also purchased heroin from a supplier in the Chicago area for distribution in and around Akron. He and Fortson supplied heroin to several dealers in Akron, some of whom in turn distributed the drug to other dealers.
Carter, Jasmine M.A. Sanders and Chanda E. Wilson transported heroin from Chicago to Akron and drug proceeds back to Chicago from Ohio. Fortson and Algyn M. Kerney provided cash to facilitate these Chicago drug transactions.
Walter Collins, III, and others facilitated heroin transactions for Fortson by, among other things, acting as couriers.
White, Fortson, Carter and Brumley owned and rented properties that they used to store, process, and distribute heroin. Those properties were on Belden Avenue, Greenwood Avenue and Waterloo Road in Akron.
It was further part of the conspiracy that White, Fortson, Carter, Shem S. White and Hershell D. Hill possessed firearms to protect themselves and their drug proceeds.
Carter illegally possessed a Firestar, .45-caliber pistol, a Taurus, model 85, .38 special revolver and ammunition on June 6, 2014, despite previous convictions for possession of cocaine in Portage County and failure to comply with a police officer in Summit County.
Fortson illegally possessed a Harrington and Richardson 16-gauge shotgun and ammunition on June 18, 2014, despite a previous conviction for aggravated trafficking in Portage County.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This investigation was conducted by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Summit County Drug Unit, the Akron Police Department and the Portage County Drug Unit, with assistance from the U.S. Marshal’s Service, the Ohio State Highway Patrol and the Portage County Prosecutor’s Office. The matter is being prosecuted by Assistant U.S. Attorneys David M. Toepfer and M. Kendra Klump.
An indictment in only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
St. Petersburg Man Arrested for Attempting to Entice A Minor to Engage in Sexual ActivityRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Robert Jay Berman (64, St. Petersburg) has been arrested and charged in a criminal complaint with attempted persuasion, inducement, enticement, or coercion of a minor to engage in sexual activity. If convicted, he faces a mandatory minimum sentence of 10 years, up to life in federal prison. Berman made his initial appearance in federal court today before U.S. Magistrate Judge Thomas B. McCoun III and was ordered detained. A bond hearing is set for August 5, 2014 at 2:00 p.m.
According to the attached criminal complaint, beginning in February 2014 and continuing until his arrest, Berman engaged in a series of sexually explicit online chats, via text message, and through email, with a person whom Berman believed was a 14-year-old girl. In fact, the person on the other end of Berman’s communications was an undercover agent. In the course of Berman’s communications, he sent the agent an email with a photograph depicting his exposed genitalia. On July 31, 2014, after making arrangements to meet the “14-year-old girl” at a public location, Berman was arrested.
A criminal complaint is merely an informal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the St. Petersburg Police Department. It will be prosecuted by Assistant United States Attorney Joseph W. Swanson.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Smuggler of Counterfeit Levi Labels Sentenced to Six Months in PrisonRead the Press Release
United States Attorney Laura E. Duffy announced today that a Washington State resident was sentenced by U.S. District Judge Barry Ted Moskowitz to serve six months in custody for smuggling counterfeit Levi Strauss tags, labels and buttons into the United States. Angel Garcia Hernandez admitted that on December 28, 2013, he entered the United States from Mexico with a duffel bag stuffed with counterfeit Levi Strauss buttons, tags and labels, which he intentionally failed to declare. Hernandez possessed enough counterfeit labels to manufacture 3,000 pairs of counterfeit Levis 501 jeans, which were valued at $192,000.
An hour and a half later the same day that Garcia Hernandez entered the United States, defendant Amadeo Calderon Valdivinos also entered the United States from Mexico at the same Port of Entry, with enough counterfeit Levi Strauss buttons, tags and labels to make $127,000 of counterfeit 501 jeans. Valdivinos pled guilty in Criminal Case 13cr4346-JAH, and was sentenced in April to four months in custody by U.S. District Judge John A. Houston.
“Intellectual property crimes, such as the counterfeit trademark offenses in these cases, strike at the heart of America’s modern economy,” said U.S. Attorney Laura Duffy. “Those who seek to steal and misuse intellectual property should know that the Department of Justice and our law enforcement partners will use the full range of enforcement tools available – including, where appropriate, criminal prosecution – to prevent these offenders from profiting at the expense of the reputation of United States companies and individuals.”
DEFENDANT Case Number: 14cr1034-BTM Angel Garcia Hernandez Age: 55 Bridgeport, Washington CHARGESSmuggling, in Violation of Title 18, United States Code, Section 545.
Maximum Penalties: 20 years in custody and/or $250,000 fine, $100 special assessment.
DEFENDANT Case Number: 13cr4346-JAH Amadeo Calderon Valdivinos Age: 55 Rialto, California CHARGESSmuggling, in Violation of Title 18, United States Code, Section 545.
INVESTIGATING AGENCY
Maximum Penalties: 20 years in custody and/or $250,000 fine, $100 special assessment.U.S. Department of Homeland Security, Office of Immigration and Customs Enforcement
*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.
Sex Trafficker Sentenced to 25 Years in Federal PrisonRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of MARKEACE CANTY a/k/a “QUAKE,” 33, to 300 months in federal prison for prostituting a child throughout the Upper Midwest, including in Minnesota, Illinois, Indiana, North Dakota, and Wisconsin. CANTY was indicted on May 6, 2013, and found guilty by a federal jury on September 12, 2013, of Conspiring to Commit Sex Trafficking of a Child, and Sex Trafficking of a Child.
“This defendant sexually trafficked a young woman for his own personal enrichment,” said U.S. Attorney Luger. “Victims of sex trafficking may never fully recover from the harm done to them, and this office will continue to prosecute aggressively those who prey on children.”
Assistant U.S. Attorney Thomas Calhoun-Lopez said: “Markeace Canty reaped great financial rewards by exploiting a child. He used money gained by advertising and selling an underage girl in order to buy personal items like jewelry and a flat-screen television. In doing so, he exposed the victim to physical and psychological harm. The lengthy sentence handed down today clearly demonstrates that, whatever the financial gain, the cost of these crimes is too high.”
As proven at trial and according to documents filed in court, from at least July 2012 through in or about January 2013, CANTY trafficked at least one girl for the purpose of prostitution in at least five states. The defendant placed sexually suggestive advertisements in the “adult entertainment” section of a website called backpage.com. CANTY and the trafficking victim were observed multiple times by law enforcement officials at various hotels in locations for which he had placed ads on backpage.com, including one incident in which she agreed to perform sexual acts with an undercover police officer in exchange for $200. The victim was arrested at least once on suspicion of engaging in prostitution during this time period.
On January 14, 2013, agents from the Federal Bureau of Investigation (FBI) and Grand Forks Police Department executed a search warrant for a hotel room booked in CANTY’S name. Pursuant to federal warrants, agents seized an iPhone belonging to CANTY containing photographs used in backpage.com advertisements linked to the defendant’s cell phone number. Also contained on the iPhone were photographs of CANTY displaying large sums of cash, jewelry, and a flat-screen television.
This case was prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.
United States Attorney Andrew M. Luger thanked the Federal Bureau of Investigation, Duluth Police Department, Porter County Sheriff’s Department (IN), Grand Forks Police Department (ND), Fargo Police Department (ND), and the Grand Forks Sheriff’s Department (ND), for their assistance with the investigation.
Defendant Information: MARKEACE CANTY a/k/a “QUAKE,” D.O.B. 8/23/1980
Duluth, MN
Convicted: • Conspiring to Commit Sex Trafficking of a Child, 1 count
• Sex Trafficking of a Child, 1 count
Sentenced: • 300 months in prison
• 180 month term of supervised releaseSacramento Man Indicted for Sharing Child Pornography FilesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment Thursday, charging Michael Bailey, 59, of Sacramento, with receipt and distribution of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, law enforcement officers conducting an undercover investigation into online child pornography being shared over peer-to-peer networks located an Internet user in Sacramento making child pornography available for download. When officers executed a search warrant at Bailey’s home, a computer containing the pornographic videos was recovered.
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Valley Internet Crimes Against Children Task Force. Assistant United States Attorney Matthew G. Morris is prosecuting the case.
Bailey was arrested on July 22, 2014, and has been in custody since then. He is scheduled to be arraigned on August 6, 2014.
If convicted, Bailey faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. A conviction for receipt or distribution of child pornography carries a mandatory minimum sentence of five years in prison. 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety.
Philadelphia Man Sentenced to 108 Months in Prison for Sexual Contact with A MinorRead the Press Release
Jackson, Miss. – Brandon Farmer, 21, of Philadelphia, Miss., was sentenced on July 31, 2014 by Senior U.S. District Judge Tom S. Lee to 108 months in prison followed by 5 years of supervised release for sexual contact with a minor under the age of twelve, announced U.S. Attorney Gregory K. Davis. Farmer must also register as a sex offender. Farmer previously pled guilty to the crime which occurred on the tribal lands of the Mississippi Band of Choctaw Indians.
The case was investigated by the Federal Bureau of Investigation and the Choctaw Police Department. It was prosecuted by Assistant U.S. Attorney Patrick Lemon.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.
Pennsylvania Man Sentenced to 15 Years in Prison for Scheme to Rob Drug Dealers and Sell Their CocaineRead the Press Release
CAMDEN, N.J. - A Pennsylvania man was sentenced today to 180 months in prison for his role in a conspiracy to rob a drug stash house in order to sell the stolen cocaine, U.S. Attorney Paul J. Fishman announced.
Ralph Dennis, 35, and conspirator Terrance Hardee, a/k/a “Fat Cat,” 37, both of Philadelphia, were previously convicted of one count of conspiracy to commit robbery and one count of conspiracy to possess more than five kilograms of cocaine with intent to distribute. Dennis was also found guilty of using and carrying a firearm during a violent crime. The jury returned the verdict on the second day of deliberations following a three-week trial before U.S. District Judge Joseph E. Irenas, who imposed Dennis’ sentence today in Camden federal court.
Hardee awaits sentencing.
According documents filed in this case and the evidence at trial:
In June and July of 2012, Dennis and Hardee planned a gunpoint robbery of a drug stash house. They prepared to steal multiple kilograms of cocaine from the drug dealers at the location, then sell it themselves to make a profit.
During the investigation, Dennis was recorded discussing his willingness to kill anyone they found inside the house as they were robbing it. Hardee was recorded talking about his role – tying up the house’s occupants with zip ties.
Special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) arrested the pair when they arrived in Maple Shade, New Jersey, on July 16, 2012, on their way to the robbery location, with Dennis carrying a gun. Dennis and Hardee also brought gloves, and zip ties were found in the car they drove to Maple Shade.
In addition to the prison term, Judge Irenas sentenced Dennis to five years of supervised release.
U.S. Attorney Fishman credited ATF special agents in Cherry Hill, New Jersey, under the direction of Special Agent in Charge Robin Shoemaker, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorneys Jacqueline M. Carle and Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Thomas Young and Christopher O’Malley, Esqs. Assistant Federal Public Defenders, Camden
Palisade Man Sentenced to Federal Prison for Attempted Armed Bank RobberyRead the Press Release
DENVER – Jose O. Jimenez, of Palisade, Colorado, was recently sentenced by U.S. District Court Judge R. Brooke Jackson to serve 210 months (over 17 years) in federal prison for attempted armed bank robbery, United States Attorney John Walsh and FBI Denver Division Special Agent in Charge Thomas Ravenelle announced. Following his prison sentence, Jimenez was ordered to serve 5 years on supervised release. Jimenez was one of three people indicted for their involvement in, or knowledge of, the August 2011 attempted armed robbery of the Palisades National Bank. Jimenez pled guilty before Judge Jackson on March 20, 2014. He was sentenced by Judge Jackson on July 25, 2014.
Co-defendant Bryan Morrow, of Palisade, Colorado, pled guilty before Judge Jackson on October 8, 2013. He was sentenced by Judge Jackson on June 18, 2014 to serve 120 months (10 years) in federal prison, followed by 5 years on supervised release. Finally, Nicole Kozic, age 25, of San Bernardino, California, who knew that Jimenez and Morrow were involved in the attempted bank robbery, pled guilty to a Class A misdemeanor, interfering with an extradition agent before U.S. District Court Judge Robert E. Blackburn also on March 20, 2014. Kozic lied to an FBI agent who was working on locating Jimenez to extradite him to Washington State to face earlier criminal charges there. She was sentenced by Judge Blackburn to serve 5 years’ probation.
According to the stipulated facts in Jimenez’s plea agreement, as well as other court documents, on Saturday morning, August 20, 2011, co-defendant Bryan Morrow drove defendant Jose Jimenez from Morrow’s home in Palisade, Colorado, to the Palisades National Bank, just a few blocks away. Morrow was driving a yellow Nissan XTerra. At approximately 8:20 a.m., Morrow dropped off Jimenez near the bank and positioned himself so he could watch the outside of the bank building. He and Jimenez had two-way radios to communicate with each other. At 8:25 a.m. the Manager of the Palisades National Bank entered the bank by the side door before it opened to the public. As per his usual routine, he checked the bank for security, and then let in the two waiting tellers through the front door. He then went back to the side entrance and opened the door, with the intent to go back to his car to retrieve items. The tellers were setting up their stations. When the bank manager opened the door, he saw work boots underneath the apricot trees by the back door. He was then confronted by Jimenez, who was carrying a gun in his right hand, wearing a black hoodie covered by a reflective work vest, a camouflage mask over half his face, jeans and work boots. He ordered the manager back into the bank. When one of the tellers realized a man with a gun was in the bank, she discretely pushed the silent alarm.
Jimenez ordered the bank manager to call the tellers to his location. He ordered the tellers to kneel, and place their hands on the wall. A third teller arrived and knocked on the door, and Jimenez ordered that she be let in. She joined the other two tellers kneeling at the wall. Jimenez went through her purse and pulled out her car keys. He asked that teller what kind of car she drove, and she responded that she drove a white mini-van.
Jimenez ultimately got the bank manager and a teller to open the bank’s vault. He ordered a teller to spread the money out on the counter to ensure it contained no dye packs. The tellers then put the money into a backpack Jimenez had found behind the counter in the bank and had emptied. The backpack belonged to a teller. Jimenez had a two-way radio, with which he spoke to Morrow. Morrow told Jimenez that someone was coming. Jimenez cocked the weapon and took the manager to the front door while the tellers continued with the money. A Palisade Police Officer arrived at the front door and knocked. Jimenez told the manager to meet the police officer. The bank door was opened, and the officer asked, “Is everything ok?” The manager discretely shook his head “no” and the officer saw Jimenez. Jimenez ordered the officer onto the floor and touched the muzzle of his gun to the officer’s head. Jimenez then obtained the officer’s weapon. The officer’s radio was on, and dispatch was requesting a status check. Jimenez told him to tell dispatch everything was fine, which he did.
When Jimenez went to check on the tellers’ progress, the officer leapt up and ran out of the bank. He immediately called for backup. Jimenez ran out of the bank after the officer. Because the bank was not yet open to the public, the door of the bank locked behind Jimenez and he could not get back into the bank after he broke off pursuit of the officer, who escaped unharmed. Jimenez, who could not access the substantial sum of money being prepared for him inside, entered the white mini-van and then met up with Morrow. Jimenez abandoned the mini-van and got into the front passenger seat of Morrow’s XTerra, and Morrow drove away from the bank.
This case was investigated by the FBI and the Palisade Police Department.
The defendants were prosecuted by Assistant U.S. Attorney Michelle Heldmyer.
Old Orchard Beach Man Pleads Guilty to Pharmacy RobberyRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Billy
Schildroth, 37, of Old Orchard Beach, Maine, pled guilty today in U.S. District Court before
Judge Nancy Torresen to pharmacy robbery.According to court records and evidence introduced at the plea hearing, on February 13, 2014, Kyle Desmarais drove Billy Schildroth to a Rite Aid pharmacy located in Old Orchard
Beach so that Schildroth could rob the pharmacy. Schildroth absconded with Oxycontin
(oxycodone) and Suboxone (buprenorphine) after putting his hand inside his coat and telling the pharmacist that he had “a gun and five bullets” and not to alert anyone or he would shoot the pharmacist in the face.
On June 20, 2014, Desmarais pled guilty to aiding and abetting pharmacy robbery.Schildroth faces up to 20 years in prison and a $250,000 fine. He will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Federal Bureau of Investigation and the Old
Orchard Beach Police Department.Nine Indicted on Drug, Gun ChargesRead the Press Release
CHARLOTTESVILLE, VIRGINIA – In an indictment returned under seal on July 23, 2014, and unsealed today following the initial court appearances of the final defendants, a federal grand jury sitting in the United States District Court for the Western District of Virginia in Charlottesville has indicted nine individuals on a variety of charges related to a conspiracy to distribute heroin, crack cocaine and powder cocaine, as well as several charges related to the illegal possession and use of firearms.
The grand jury has charged the following:
- Solomon Anthony Francis, 25, of Culpeper, Va., with one count of conspiracy to distribute crack cocaine, one count of conspiracy to distribute heroin, one count of distributing crack cocaine, one count of distributing heroin and one count of distributing a controlled substance near a playground.
- James Alexander Clore, 23, of Culpeper, Va., with one count of conspiracy to distribute crack cocaine, one count of conspiracy to distribute heroin, four counts of distributing crack cocaine, four counts of distributing a controlled substance near a playground, two counts of attempting to distribute crack cocaine, one count of distributing heroin and two counts of possession of a firearm in furtherance of a drug trafficking crime.
- Renee Harris, 43, of Charlottesville, Va., with one count of conspiracy to distribute crack cocaine, one count of conspiracy to distribute heroin, one count of maintaining drug-involved premises near a playground and one count of distribution of a controlled substance near a playground.
- Marcus Lee Strother, 23, of Culpeper, Va., with one count of conspiracy to distribute crack cocaine, one count of conspiracy to distribute heroin and two counts of distributing a controlled substance near a playground.
- Richard A. Barracks, 32, of Esmont, Va., with one count of conspiracy to distribute crack cocaine, one count of conspiracy to distribute heroin, two counts of possession with the intent to distribute heroin, one count of distributing crack cocaine and one count of illegal possession of a firearm by a prohibited person.
- Jamel Jovan Jackson, 24, of Charlottesville, Va., with one count of conspiracy to distribute crack cocaine, one count of distributing crack cocaine and one count of possession of cocaine.
- Octavius Deshaw Eubanks, 20, of Charlottesville, Va., with one count of conspiracy to distribute crack cocaine.
- Richard Jerome Koonce, III, 41, of Charlottesville, with one count of conspiracy to distribute heroin, one count of possession of heroin and one count of possession of cocaine.
- Reg-juan Antonio Smith, 20, of Charlottesville, Va., with one count of conspiracy to distribute crack cocaine, one count of distribution of crack cocaine and one count of possession of stolen firearm.
According to the indictment, members of the group conspired to distribute more than 280 grams of crack cocaine and a measurable amount of heroin from January 2013 to the present. In addition, Renee Harris is accused of maintaining a drug house at 366 Riverside Avenue in Charlottesville, within 1,000 feet of Christ Community Church and Riverview Park where two public playgrounds are located.
The indictment also accuses several members of the conspiracy of illegally possessing and using firearms, including a stolen firearm.
The investigation of the case was conducted by the Jefferson Area Drug Enforcement Task Force, the Charlottesville Police Department, the Albemarle County Police Department, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Culpeper Police Department and the Commonwealths Attorney’s Offices for the City of Charlottesville and the County of Albemarle. Special Assistant United States Attorneys Joseph Platania and Elliott Casey and Assistant United States Attorney Ronald Huber are prosecuting the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
New Haven Man Admits Illegally Possessing AmmunitionRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that RICHARD DAVIS, also known as “Quan Bezel,” 20, of New Haven, pleaded guilty on Wednesday, July 30, before Senior U.S. District Judge Alfred V. Covello in Hartford to one count of possession of ammunition by a previously convicted felon.
According to court documents and statements made in court, on January 10, 2014, DAVIS possessed 15 rounds of .22 caliber ammunition. Prior to that date, DAVIS had been convicted of multiple felony offenses, including carrying a pistol without a permit, theft of a firearm and sale of a controlled substance.
It is a violation of federal law for a person previously convicted of a felony offense to possess ammunition that has moved in interstate or foreign commerce.
This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. DAVIS and several associates attended a call-in in November 2012.
DAVIS has been detained since his arrest on February 27, 2014.
Judge Covello scheduled sentencing for October 28, 2014, at which time DAVIS faces a maximum term of imprisonment of 10 years.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the New Haven and West Haven Police Departments. The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Murphysboro Woman Sentenced for Methamphetamine OffenseRead the Press Release
Follow @SDILNewsOn July 31, 2014, Toni J. Johnson, 33, of Murphysboro, was sentenced on a methamphetamine violation, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Johnson, who had previously pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 87 months in federal prison, to be followed by 3 years of supervised release, and fined $250. The offense occurred between 2009 and October 2013, in Union and Jackson Counties. Evidence at Johnson’s plea and sentencing hearings established that she was involved with others in the manufacture of methamphetamine. Johnson stole anhydrous ammonia and obtained pseudoephedrine pills, herself, and from others to use during the manufacture of methamphetamine. During a February 2013, search of Johnson’s Carbondale hotel room, agents located an oxygen tank containing anhydrous ammonia, along with other methamphetamine-making materials. At sentencing, the district court determined that Johnson was responsible for approximately 200 grams of pseudoephedrine, which was possessed for the purpose of manufacturing methamphetamine. Two co-defendants have pled guilty to their role in the methamphetamine conspiracy and are awaiting sentencing. Two co-defendants have pled not guilty and are awaiting jury trial.
The ongoing investigation is being conducted by the Union County Sheriff’s Office, Murphysboro Police Department, Jackson County Sheriff’s Office, and Drug Enforcement Administration. The Illinois State Police Methamphetamine Response Team, Carbondale Police Department, and Union County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Memphis Woman Pleads Guilty to Theft of over $30,000 from Memphis Housing AuthorityRead the Press Release
Memphis, TN – Janet Wheeler, age 48, of Cordova, Tennessee, pleaded guilty yesterday to a criminal information charging her with theft of government funds, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.
According to facts revealed in the criminal information and recited during the plea, between February 2009 and December 2011, Wheeler was a participant in the Housing Choice Voucher Program operated by the U.S. Department of Housing and Urban Development. An investigation revealed that Wheeler had made false representations to the Memphis Housing Authority and as a result had received over $30,000 in federal housing assistance to which she was not entitled.
Wheeler faces a maximum penalty of 10 years imprisonment, a $250,000 fine, and three years of supervised release. Sentencing is scheduled for December 5, 2014, at 9:30 a.m. before United States District Judge John T. Fowlkes.
This case was investigated by the United States Department of Housing and Urban Development. The case is being prosecuted by Assistant United States Attorney David Pritchard on behalf of the government.Memphis Pastor Pleads Guilty to Theft of Government FundsRead the Press Release
Memphis, TN – Craig Wilson, 45, of Memphis, TN, pleaded guilty yesterday to assisting others in stealing United States Department of Treasury funds through the filing of false income tax returns, a violation of 18 U.S.C. § 641, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.
According to facts revealed in the criminal information and recited during the plea, between November 1, 2011 and August 30, 2012, Craig Wilson, while in his position as pastor of New Beginnings Church, assisted other individuals in stealing approximately $168,000 in funds administered by the U.S. Department of the Treasury in the form of federal income tax refunds. The U.S. Treasury tax refund checks were deposited into bank accounts controlled by Pastor Wilson and other individuals in connection with numerous fraudulent tax returns filed by associates of Wilson.
Wilson faces a maximum penalty of 10 years imprisonment, a $250,000 fine, and three years supervised release. There is no parole in the federal prison system. Sentencing is scheduled for October 28, 2014, at 2:30 p.m. before United States District Judge S. Thomas Anderson.
This case was investigated by IRS-Criminal Investigative Division and the United States Secret Service. The case is being prosecuted by Assistant United States Attorney Stephen Hall on behalf of the government.Melrose Man Arrested for Impersonating Federal AgentRead the Press Release
BOSTON - A Melrose man was arrested and charged today in federal court with two counts of impersonating a federal agent.
Gjerji Pelushi, a/k/a "Gjergi Pelushi," a/k/a "George Pelushi," 28, was charged by criminal complaint and faces the maximum sentence under the statute of three years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
According to the affidavit, earlier this year agents with the Federal Bureau of Investigation interviewed two victims who, like Pelushi, are originally from Albania and met Pelushi through common acquaintances. In separate interviews, both victims told agents that they had each paid thousands of dollars to Pelushi to assist them in obtaining a law enforcement job or in dealing with a law enforcement-related problem. For instance, one of the victims had a pending state court case which Pelushi promised to get dismissed. The victims paid for Pelushi’s help because he repeatedly told them he worked for the FBI or the Central Intelligence Agency.
During a four-month undercover operation agents recorded several telephone calls and meetings between Pelushi and the victims. According to the affidavit, on the recordings Pelushi repeatedly referred to himself as an FBI agent, confirmed he had taken thousands of dollars from both victims, and promised to use his connections as an agent to help them. In one meeting, Pelushi allegedly claimed to have patrolled this year’s Boston Marathon in plain clothes while armed and that “the Director” had told him and his fellow agents that if they “tell someone to stop and they reach for the bag, shoot them in the head!”
United States Attorney Carmen M. Ortiz and Vincent Lisi, Special Agent in Charge of the Federal Bureau of Investigation – Boston Field Division made the announcement today. The case is being prosecuted by prosecutors in Ortiz’s Organized Crime Strike Force Unit.
Marijuana Grower Sentenced to 6.5 YearsRead the Press Release
PHOENIX– On July 31, 2014, John Cary Dean, 28, of Phoenix, Ariz., was sentenced by U.S. District Judge Douglas L. Rayesto 6.5 years in prison. Dean pleaded guilty on Jan. 23, 2014 to two counts of possession with intent to distribute less than 50 kilograms of marijuana, one count of manufacturing marijuana, and possession of a firearm in furtherance of drug trafficking offenses, all felonies.
On July 23, 2013, Dean was charged with numerous marijuana trafficking and weapons offenses, including being a felon in possession of firearms. The evidence showed that Dean was involved in the growing, packaging, and distributing of high-grade marijuana in Arizona and out-of-state. Dean possessed firearms for his protection while trafficking marijuana. Dean was first contacted by Arizona Department of Public Safety officers in February 2013 in Flagstaff with 25 pounds of high-grade marijuana and a loaded .357 handgun en route to Alabama to deliver the marijuana to customers. In May 2013, law enforcement arrested Dean and searched his residence. Officers found a well-outfitted marijuana grow operation, 32 pounds of marijuana packaged for sale, hydroponic growing supplies, $79,587 in cash, and eleven firearms including four handguns, five rifles, and two shotguns.
The investigation in this case was conducted by the Flagstaff Offices of the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Arizona Department of Public Safety. The prosecution was handled by Jonell L. Lucca, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-13-01029-PHX-DLR
RELEASE NUMBER: 2014-045_DeanFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Man Sentenced to Federal Prison for Meth Cook That Started Apartment Fire Near Dubuque SchoolRead the Press Release
A man who was involved in an attempt to manufacture methamphetamine in his apartment, but instead set the apartment building on fire, was sentenced on July 29, 2014, to more than seven years in federal prison.
Donald Sheldon, age 47, from Dubuque, Iowa, received the prison term after an April 3, 2014, guilty plea to attempt and aiding and abetting the manufacture of methamphetamine within 1,000 feet of a school.
Court documents reflect Sheldon allowed Joshuah Tiesman to use his apartment to manufacture methamphetamine. The methamphetamine lab exploded, starting a fire in the apartment building that caused damage to Sheldon’s apartment building and an adjoining building, including a restaurant located in that adjoining building. Tiesman previously was sentenced to 96 months’ imprisonment for his involvement in the methamphetamine cook and fire.
Sheldon was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Sheldon was sentenced to 87 months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to make $94,682 in restitution to the victims of the fire. He must also serve a six-year term of supervised release after the prison term. There is no parole in the federal system.
Sheldon is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dan Chatham and investigated by Dubuque, Iowa, Drug Task Force.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR13-1019-2-LRR.
Lawrenceville Man Pleads Guilty to Failure to RegisterRead the Press Release
Follow @SDILNewsOn July 31, 2014, Daryl G. Nenninger, 33, of Lawrenceville, Illinois, pled guilty in federal district court, in Benton, Illinois, to failure to register as a sex offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Nenninger is scheduled for sentencing on November 20, 2014, at which time he faces a prison term of up to ten years, a fine up to $250,000, or both, at least five years supervised release, and a mandatory special assessment of $100.
On December 11, 2013, after registering as a sex offender in Lawrence County, Illinois, Nenninger traveled to the Country of Mexico and was arrested there on March 28, 2014. He was aware of his requirements to inform the State of Illinois of his travel to Mexico by updating his registration. Nenninger has a prior conviction from an Aggravated Criminal Sexual Abuse case on November 17, 2005, in Bond County, Illinois.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the United States Marshals Service and Assistant United States Attorney Daniel T. Kapsak prosecuted the case.
Kentucky Pain Clinic Owners Sentenced for Unlawfully Dispensing More Than 50,000 Prescription PillsRead the Press Release
LEXINGTON, KY - Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; James V. Allen, Acting Special Agent in Charge, DEA; and Jack Conway, Kentucky Attorney General, jointly announced today that two Eastern Kentucky pain clinic owners, who had previously admitted to conspiring with doctors to illegally dispense more than 50,000 prescription pills, were sentenced to federal prison.
U.S. District Judge Amul Thapar sentenced Tammy Cantrell, 41, of Oil Springs, Ky., to 108 months and Shelby Lackey, 52, of Williamsport, Ky., to 97 months, for conspiracy to distribute and unlawfully dispense Oxycodone and maintaining a drug involved premise. In total, Cantrell, Lackey and one of their co-defendants have forfeited $1,128,206, as proceeds of the conspiracy.
At the time of their guilty plea, in April 2013, Cantrell and Lackey were the first pain clinic owners in the Eastern District of Kentucky (district includes 67 counties) to have federal convictions for such charges.
According to the plea agreements, the defendants owned and operated Care More Pain Management, LLC, located in Paintsville, Ky. From 2008 until approximately February 2012, the defendants conspired with two doctors to dispense Oxycodone to Eastern Kentuckians without a legitimate medical purpose.
Specifically, Court records state that the doctors performed little or no physical examination before writing prescriptions that were usually for 90 Percocet pills. Patients paid $200 for the initial visit and $185 for subsequent visits; all fees were paid in cash. One of the doctors has admitted that he saw between 40 and 50 patients in one day. In many instances, the doctors wrote prescriptions without seeing patients or signed blank prescriptions for office assistants to give to patients.
Cantrell and Lackey paid the doctors as much as $8,500 a week. The clinic did not accept insurance and the doctors made no referrals for physical rehabilitation. Neither Cantrell nor Lackey are medically certified and neither has any nursing experience.
In June 2013, Dr. Richard Albert was sentenced to 75 months in federal prison for his role in the conspiracy. Another doctor, Rano Bofill, pleaded guilty to a conspiracy charge earlier this year and is awaiting sentencing.
The investigation was conducted by the DEA and the Kentucky Attorney General’s Office. Assistant U.S. Attorney Roger West prosecuted this case on behalf of the federal government.
Jury Finds Washington County Man Guilty on Child Sexual Exploitation ChargesRead the Press Release
PITTSBURGH - After deliberating approximately three hours, a federal jury of five men and seven women found David Cunningham guilty of three counts of receipt, distribution and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Cunningham, 42, of Eighty Four, Pa., was tried before United States District Judge Cathy Bissoon in Pittsburgh.
According to Assistant United States Attorneys Soo C. Song and Jessica Lieber Smolar, who prosecuted the case, the evidence presented at trial established that Cunningham knowingly received, distributed and possessed material depicting the sexual exploitation of a minor.
Judge Bissoon scheduled sentencing for Nov. 12, 2014, at 10 a.m. The law provides for a total sentence of 50 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Cunningham.
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.
Jacksonville Man Pleads Guilty to Federal Tax ChargesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Emell Meda Meda (45, Jacksonville) yesterday pleaded guilty to failure to file federal tax returns or pay federal taxes for two years. He faces a maximum penalty of one year in federal prison for each count. A sentencing date has not yet been set. Meda was indicted on June 26, 2013.
According to the plea agreement, Meda was a resident of Duval County, Florida since at least 2008. During 2008 and 2009 calendar years, Meda received gross income substantially in excess of the minimum amounts legally requiring him to pay federal income taxes. Due to his receipt of this income, Meda was required to file an income tax return with the Internal Revenue Service on or before April 15, 2009 (for taxable year 2008) and on or before April 15, 2010 (for taxable year 2009). Meda willfully failed to file these returns for both calendar years.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Mark B. Devereaux.
Jackson Man Sentenced to Prison for Bank Fraud and Money LaunderingRead the Press Release
Jackson, Miss - Gregory Bernard Griffin, Jr., 23, of Jackson was sentenced to 10 years and 7 months in federal prison as a result of his convictions for bank fraud, wire fraud, aggravated identity theft, money laundering and conspiracy to commit money laundering, announced U.S. Attorney Gregory K. Davis. Griffin was order to pay restitution in the amount of $75,000 and to forfeit 2 vehicles along with several other items he obtained with stolen and laundered funds. His sentence will run consecutively to a nine year sentence he recently received from Madison County Circuit Court for a separate fraud conviction. He was remanded to the custody of the U.S. Marshal.
Griffin was charged in a 17 count indictment with using a stolen identity to open a bank account at a Jackson area credit union, stealing $193,205.43 from a local Marriott hotel, and laundering some of the proceeds of his fraud with the help of his sisters, Tiffany Griffin, 30, and Erica Griffin, 27, both of Jackson. A jury convicted him of all 17 counts after a three day trial in May, 2014.
Tiffany Griffin, 30, and Erica Griffin, 27, both of Jackson, previously pled guilty and were each sentenced to 3 years of probation for their roles in the crimes. They must also pay restitution.
The case was investigated by United States Secret Service Special Agent Scott Frazier and prosecuted by Assistant U.S. Attorney Scott Gilbert.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:
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Independence Man Indicted on Charges Related to Producing Child PornographyRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an Independence, Mo., man has been indicted on charges related to producing child pornography by secretly recording videos of unsuspecting victims in restrooms and changing rooms, as well as downloading child pornography over the Internet.
Nicholas A. Braile, 25, of Independence, was charged in a five-count indictment returned under seal by a federal grand jury on Tuesday, Aug. 26, 2014. That indictment was unsealed and made public following Braile’s arrest and initial court appearance. Braile remains in federal custody pending the court’s ruling on a motion for detention. A detention hearing was held on Tuesday, Sept. 2, 2014, and the court has taken the government’s motion under advisement.
The federal indictment charges Braile with two counts of attempting to produce child pornography, two counts of receiving child pornography over the Internet and one count of possessing child pornography.
Braile was arrested at a Walmart store in Independence on May 15, 2014, when he was caught taking an “up skirt” photo of a female customer with his cell phone.
A forensic examination of Braile’s cell phone and computer located approximately 2,600 images of child pornography, according to court documents, as well as 138 video files of child pornography or child erotica on Braile’s computer. Investigators also located video files of women and girls changing in store dressing rooms, videos taken in the restroom at Braile’s work place, Harbor Freight Tools in Independence, and “up skirt” video files.
According to court documents, the store manager at Harbor Freight Tools identified photographs of two teenage victims that had been located on a computer at Braile’s home as store employees. The photographs were taken from videos that depicted the teens using the restroom and changing clothes at Harbor Freight Tools. Detectives also observed the restroom where the videos had been produced. There was a small section of the ceiling where the ceiling tile was missing. This restroom was next to a janitor closet. Located in the ceiling of the janitor closet was a paint roller, without the brush, that was positioned over the hole in the ceiling tile in the restroom. Detectives surmised that the paint roller was used to hold Braile’s cell phone over the hole in the ceiling tile so that he could film the teens in the restroom without their knowledge.
One of the teen employees, identified in the indictment as “Jane Doe #1,” identified a photo of herself that was taken in the store restroom. The second teen was 18 years old at the time the videos were produced and is not included as a victim in the indictment. In addition, the defendant filmed customers who used the restroom, including adults and small children.
Detectives determined that a victim in one of the “up-skirt” videos located on Braile’s computer worked at a store in Independence Center. The store manager identified the 16-year-old victim, who is identified in the indictment as “Jane Doe #2.” The video depicts Braile asking Jane Doe #2 for assistance and then, because of his close proximity to the victim, Braile is able to maneuver his phone into a position to film up the victim’s skirt.
The forensic examination of Braile’s computers and phone also located approximately 468 photographs he had taken of prepubescent female children. These images were taken at Braile’s work place and at Independence Center. The images depict children shopping with their parents. There is no nudity in the images.
Under Department of Justice guidelines, the attempted production of child pornography is ordinarily charged in cases that involve surreptitious recordings. The statutory penalties for producing child pornography are the same as the penalties for attempting to produce child pornography.
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 Teresa A. Moore. It was investigated by the Independence, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Identity Thieves Sentenced to Federal PrisonRead the Press Release
ATLANTA - Maario Coleman and Angela Russell have been sentenced for stealing the identities of Emory University and University of Georgia students in order to apply for student loans.
“Just as these law and medical students were graduating to embark on their careers, they found themselves victims of identity theft,” said United States Attorney Sally Quillian Yates. “We encourage citizens to diligently review their credit reports and bank accounts to spot fraudulent activity as soon as possible.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This elaborate and aggressive scheme to defraud targeted not only those students at Emory University and the University of Georgia, but also Discover Bank and serves as an example of the harm that can be caused by several well placed individuals using their access and others’ personal information in this manner. FBI Atlanta is proud of the role that its capable cyber trained investigators played in working with Emory University’s Police Department to interrupt this criminal scheme and to bring these individuals to justice.”
“We are proud of the efforts of our investigators and grateful for the cooperative assistance the FBI provided in bringing resolution to this situation,” said Emory Police Chief Craig Watson.
According to United States Attorney Yates, the charges and other information presented in court: Coleman obtained the names of over 100 members of the 2013 class of graduating law and medical students at Emory University and five law students at the University of Georgia. After obtaining partial social security numbers and dates of birth for the students, he asked Russell to supply the remaining personal identifiers. At the time, Russell had access to credit reporting databases through her employment. Together, the defendants compiled students’ birthdates and social security numbers. Using that information, Coleman then applied for over $400,000 worth of post-graduate bar exam study loans and medical residency loans through Discover Bank.
In many cases, Discover required student transcripts before it would approve and fund the loans. To facilitate approval of the loans, Coleman used the students’ personal identifiers to obtain passwords to Emory’s online portal, where he ordered transcripts and had them mailed to his associates. The transcripts were then sent to Coleman, who forwarded them on to Discover. Coleman also arranged for the loan proceeds to be deposited into bank accounts fraudulently opened in the victims’ names. After the loans were funded, other associates of Coleman withdrew the funds via ATM. The defendants obtained $52,000 worth of loans before the scheme was uncovered.
Maario Coleman, 28, of Atlanta, Ga., pleaded guilty to computer fraud and aggravated identity theft on May 13, 2014. He was sentenced by United States District Judge Thomas W. Thrash, Jr., to four years, nine months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $52,000. Angela Russell, 43, of Atlanta, Ga., was also sentenced by Judge Thrash to two years in prison to be followed by one year of supervised release, and was ordered to pay restitution in the amount of $26,000. She pleaded guilty to aggravated identity theft on May 13, 2014.
This case was being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Shanya J. Dingle prosecuted the case.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Houston Man Sentenced in Houston Theft and Fraud RingRead the Press Release
HOUSTON – Jason Wade Crawford, 36, has been ordered to federal prison for his convictions of bank fraud, access device fraud and aggravated identity theft, announced United States Attorney Kenneth Magidson. He pleaded guilty May 6, 2014.
Today, U.S. District David Hittner, who accepted the plea, handed Crawford a sentence of 15 months for the bank fraud and access device fraud charges to be served concurrently. For the aggravated identity theft, he was further ordered to serve a mandatory two years which must be served consecutively for a total sentence of 39 months in federal prison. Crawford will also be required to serve a term of three years of supervised release following completion of the prison term. He was further ordered to pay a $23,682.36 in restitution to the victims.
Beginning in at least May 2012, Crawford broke into several mail boxes throughout the Houston area to steal mail, much of which included checks, credit cards, gift cards and other mail with personal identifiers. He then created false identifications and used them to deposit or cash the checks.
Bank surveillance photos showed Crawford negotiating stolen checks at Woodforest National Bank and Amegy Bank. Local area law enforcement officers were also able to seize bags full of stolen mail from Crawford’s car.
At the time of his guilty plea, he admitted he participated in the mail theft ring and had used the personal identification information of another person to cash stolen checks.
Crawford will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Julie Searle is prosecuting.
Hewlett-Packard Company Agrees to Pay $32.5 Million for Alleged Overbilling of the U.S. Postal ServiceRead the Press Release
The Justice Department announced today that Hewlett-Packard Co. (HP) has agreed to pay $32.5 million to resolve allegations under the False Claims Act that HP overcharged the U.S. Postal Service (USPS) for products between October 2001 and December 2010. HP is a manufacturer and vendor of information technology products and services headquartered in Palo Alto, California.
“Protecting the federal procurement process from false claims is central to the mission of the Department of Justice,” said Assistant Attorney General Stuart F. Delery for the Justice Department’s Civil Division. “We will continue to ensure that when the government purchases commercial products, it receives the prices to which it is entitled.”
The United States alleged that under a contract between HP and the USPS, HP overcharged USPS by failing to comply with pricing terms of the contract, including a requirement that HP provide prices that were no greater than those offered to HP customers with comparable contracts. The United States also alleged that HP made misrepresentations during the negotiation of the contract regarding its pricing and its plans to ensure it would provide the required most favored customer pricing.
“The Major Fraud Investigations Division (MFID) within the Postal Service Office of Inspector General fully investigates those contractors who wrongly take advantage of the Postal Service,” said Thomas Frost, MFID's Special Agent in Charge. “The Postal Service and the public must have complete confidence in the procurement process and MFID will continue to work diligently to make that happen.”
This matter was jointly investigated by the U.S. Postal Service, Office of the Inspector General and the Department of Justice’s Civil Division. The claims resolved by the settlement are allegations only and there has been no determination of liability.
Grundy County Gun Dealer Indicted on Federal Charges for Allegedly Illegally Selling FirearmsRead the Press Release
CHICAGO ― A Grundy County gun dealer was indicted on federal firearms charges alleging that he illegally sold 11 firearms from either his store or his residence to an undercover law enforcement officer posing as a felon, as well as to a convicted felon who was cooperating with law enforcement, federal law enforcement officials announced today.
The defendant, PATRICK SEAN KEIRAN, 40, of Elwood, Ill., in Will County, has been a federally licensed firearms dealer since April 2013 and operated American Choice Firearms and Ammo in Gardner, Ill., in Grundy County.
A federal grand jury returned a six-count indictment yesterday charging Keiran with one count of selling firearms to an individual he had reason to believe was a convicted felon, one count of selling firearms to an individual who did not display a valid Firearm Owner’s Identification (FOID) Card, and four counts of selling firearms without recording the name, age, and residence of the purchaser.
Keiran will be arraigned on a date to be determined in U.S. District Court in Chicago. He was initially charged in a criminal complaint and arrested on July 2, and was released on bond. His gun store was closed at that time and the Bureau of Alcohol, Tobacco, Firearms, and Explosives removed the firearms and ammunition remaining in the store at that time.
According to the charges, between May 29 and June 20, 2014, Keiran illegally sold 11 firearms ― eight 9mm handguns, two .22 caliber rifles, and a .38 caliber revolver. ATF agents began investigating Keiran in May after receiving information from a confidential source that he was selling firearms to prohibited persons and falsifying ATF paperwork in an attempt to fraudulently legitimize the prohibited sales, according to the complaint. The charges allege that Keiran initially conducted the illegal sales with an undercover agent at his store and later conducted additional illegal sales with the agent and a cooperating individual at his residence.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Carl Vasilko, Special Agent-in-Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Will County Sheriff’s Police Department, the Will County Metropolitan Area Narcotics Squad (MANS), and the Grundy County Sheriff’s Department assisted in the investigation.
Keiran faces five counts of illegally selling firearms that each carry a maximum sentence of five years in prison, and a sixth count that carries a maximum penalty of 10 years in prison, and all six counts carry a maximum fine of $250,000. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney Christopher Parente.
Indictment
Complaint
Former Senior Managing Director of Investment Bank Sentenced in Manhattan Federal Court to 30 Months for Insider Trading and Making False Statements to FBI AgentsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York announced that FRANK PERKINS HIXON, JR., a former Senior Managing Director of Evercore Group, LLC, a subsidiary of Evercore Partners Inc. (“Evercore”), was sentenced today to 30 months’ imprisonment for insider trading and false statement offenses. In April 2014, HIXON pled guilty before U.S. District Judge Ronnie Abrams to using inside information to trade and cause others to trade in the securities of Evercore, Westway Group Inc. (“Westway”), and Titanium Metals Corporation (“Titanium”), and to making false statements to FBI agents during the course of the investigation into his insider trading. Judge Abrams also imposed today’s sentence.
According to the Information and other documents filed in Manhattan federal court, as well as statements made during court proceedings:
Between April 2010 and January 2014, HIXON was a Senior Managing Director with the Mining and Metals Group of Evercore. HIXON used material non-public information that he acquired as part of his employment with Evercore to trade and cause trades in brokerage accounts belonging to the mother of his young child (“Individual A”), who lived in Austin, Texas, and to HIXON’s father (“Individual B”), who lived in Johns Creek, Georgia.
HIXON’s Insider Trading
In 2011, HIXON led an Evercore team in advising Westway about a non-public offer from another company (“Company A”) to purchase some of its business components and, more generally, in connection with potential transactions concerning Westway’s other business components. Company A’s offer was made in early September 2011, and a Special Committee was formed around that time to consider the offer and other strategic alternatives. Those developments were not announced publicly until December 15, 2011. Meanwhile, between October 21 and December 15, 2011, HIXON purchased, and caused to be purchased, 229,000 shares of Westway for Individual A’s brokerage account by logging into Individual A’s account from various locations, including Evercore’s Manhattan office. As the negotiations for the contemplated Westway transactions became protracted, HIXON sold and caused to be sold about 140,000 of the Westway shares that had accumulated in Individual A’s account, for a profit of approximately $260,000. Later, in 2012, HIXON made additional purchases of Westway shares for Individual A’s account, in advance of a tender offer for Westway’s outstanding equity securities that was announced on December 20, 2012. Profits reaped from sales of those shares amounted to approximately $104,000.
In October 2012, HIXON was invited, along with other Evercore personnel, to meet with a Special Committee of Titanium’s board of directors to discuss a potential engagement in connection with an unspecified $3 billion transaction. At the October 23, 2012, pitch meeting, which HIXON attended by teleconference from London, England, HIXON and the rest of the Evercore team learned that the transaction being considered was an acquisition of Titanium by Precision Castparts Corp. (“PCP”), a manufacturer of complex metal components and products. HIXON also learned the approximate offer price, and that the transaction was likely to close before year’s end.
Within approximately one hour of the meeting with the Special Committee, HIXON began buying 20,000 Titanium shares for Individual A’s account from a mobile device he was using in London, England. Eight days later, after HIXON had returned from England, 20,000 more shares of Titanium were purchased for Individual A’s account, mostly through logins from Evercore’s Manhattan office. That same day, HIXON caused Individual B to buy 15,000 shares of Titanium. After market close on November 9, 2012, Titanium announced PCP’s tender offer for its shares. The next trading day, November 12, 2012, all 40,000 of Individual A’s shares of Titanium were sold for a profit of approximately $180,000. Later that month, Individual B’s Titanium shares were sold for a profit of approximately $70,000.
On January 14, 2013, HIXON attended an Evercore partnership meeting at which he learned that Evercore would be announcing record financial results for the fourth quarter of 2012. During the two days preceding the bank’s January 30, 2013, announcement, HIXON, logging into Individual A’s account from Evercore’s Manhattan offices and from his home in Manhattan, bought 27,000 shares of Evercore for the account. At the same time, HIXON caused Individual B to purchase 10,000 shares of Evercore for Individual B’s account. After Evercore’s earnings release, Individual A and Individual B sold all of their Evercore shares, and reaped a combined profit of approximately $96,000.
Lies to Evercore and the FBI
In February 2013, Evercore asked HIXON to respond to a request from the Financial Industry Regulatory Authority (“FINRA”) and to identify any known names from a list of people and entities that had traded in Titanium stock prior to PCP’s tender offer. Although Individual A and B were both on the FINRA list, HIXON responded by email: “No known relationships.”
When, following further inquiry from FINRA, Evercore confronted HIXON about his failure to identify Individual A—who, as noted above, is the mother of his young child—HIXON claimed not to know Individual A by her legal name, which was what appeared on the FINRA list, and to know her only by a different name that she uses. Documents produced by Evercore, including text messages and emails between HIXON and Individual A, make clear that HIXON had, in fact, long been aware of Individual A’s legal name. And bank records show that he wrote numerous large checks to Individual A, in her legal name, from 2009 to 2010.
Confronted by Evercore with his failure to identify his own father’s name on the FINRA list for Titanium, Hixon asserted that the associated location given for Individual B on the FINRA list, Duluth, Georgia, was inaccurate because Individual B lived in Johns Creek, Georgia. Johns Creek shares a zip code with portions of Duluth, and was only incorporated as its own city many years after Individual B had begun living there. The city listed on the brokerage account statements for Individual B’s account was Duluth, not Johns Creek.
Following Evercore’s inquiries into his conduct, HIXON agreed to swear out a declaration memorializing certain statements he had made upon having been confronted with matters related to Titanium. Among the statements to which Hixon swore was this one: “I did not share any information about Titanium Metals Corporation (‘TIMET’) with anyone outside of Evercore, and was fully aware of my obligations to keep any information I learned about any transaction involving TIMET confidential . . . .”
After swearing out this statement, HIXON called Individual B to alert him to expect an inquiry from an Evercore representative about his Titanium trades. HIXON explained to Individual B that he had provided “privileged information” to Individual B about Titanium, but that he had denied as much in a signed statement to Evercore. HIXON then coached Individual B to lie to Evercore by saying, among other things, that Individual B had researched Titanium and bought the stock on his own. Individual B followed HIXON’s instructions and lied to Evercore’s representative.
On January 27, 2014, FBI agents interviewed Individual A at her home in Austin. She told them, in sum and substance, that her own trading in Titanium and in Westway had been prompted by research she had done, rather than by HIXON. She further claimed that HIXON had never had access to, or traded in, her brokerage account.
On January 28, 2014, HIXON met with two FBI agents and told them, among other things, that he did not have access to and had never traded in Individual A’s brokerage account. HIXON also claimed that he never recommended particular stocks to either Individual A or Individual B, because he did not want to be held responsible for the performance of the stocks he might pick. Regarding Titanium, HIXON said he had been “shocked” by the news that it would be acquired by PCP, and had been surprised at the purchase price.
In addition to the prison sentence, HIXON, 55, of New York, New York, was fined $100,000 and ordered to forfeit $710,000 and to pay $1,204,777.80 in restitution to Evercore. HIXON was also sentenced to three years supervised release.
Mr. Bharara praised the investigative work of the FBI and thanked the Securities and Exchange Commission, which has filed civil charges in a separate action. Mr. Bharara also thanked Evercore for its cooperation in this matter.
This case is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Sarah E. McCallum is in charge of the prosecution.
Former Owner of Southern California Medical Supply Company Found Guilty for a 10-Year, $8.3 Million Medicare Fraud SchemeRead the Press Release
On July 31, 2014, a federal jury in Los Angeles found that the former owner of a durable medical equipment (DME) supply company located in Carson, California, was guilty of health care fraud charges relating a 10-year scheme in which Medicare was fraudulently billed more than $8 million for DME that was not medically necessary.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney André Birotte Jr. of the Central District of California, Special Agent in Charge Glenn R. Ferry of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Los Angeles Region, Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office and Special Agent in Charge Erick Martinez of the IRS-Criminal Investigation’s (IRS-CI) Los Angeles Field Office made the announcement.
Olufunke Ibiyemi Fadojutimi, 42, of Carson, California, is a registered nurse and the former owner of Lutemi Medical Supply. He was found guilty after trial of one count of conspiracy to commit health care fraud, seven counts of health care fraud and one count of money laundering. Sentencing will be scheduled at a later date.
The trial evidence showed that between September 2003 and January 2013, Fadojutimi and others paid cash kickbacks to patient recruiters and physicians for fraudulent prescriptions for DME, such as power wheelchairs, that the Medicare patients did not actually need. Fadojutimi and others then used these prescriptions to bill Medicare for the power wheelchairs and other DME. Approximately $8.3 million in false and fraudulent claims were submitted to Medicare, and Medicare paid almost $4.3 million on those claims.
The case is being investigated by HHS-OIG Los Angeles Region, the FBI and IRS-CI Los Angeles Field Office. The case is being prosecuted by Trial Attorneys Fred Medick and Blanca Quintero of the Criminal Division’s Fraud Section, and was previously prosecuted by the Fraud Section’s Jonathan T. Baum.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009, between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG , are taking steps to increase accountability and decrease the presence of fraudulent providers. To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Former NYPD Sergeant Who Participated in $4.7 Million Real Estate Fraud Sentenced to 58 Months in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York announced that JAMES MONAHAN, the owner of a real estate investment company called Panam Management Group, Inc., was sentenced to 58 months in prison. MONAHAN previously pled guilty on May 29, 2013, to one count each of wire fraud, mail fraud and conspiracy to commit wire and mail fraud for operating a fraudulent real estate scheme. In connection with the scheme, MONAHAN obtained approximately $4.7 million from investors for a real estate development project he claimed to be constructing in the Dominican Republic and then misappropriated those funds. The real estate project was never developed and investors lost all of their money. He was sentenced today by U.S. District Judge John G. Koeltl.
According to the Indictment, statements made during MONAHAN’s guilty plea proceeding, and a Complaint previously unsealed in Manhattan federal court:
Beginning in early 2008, MONAHAN, a former sergeant in the New York City Police Department (“NYPD”), negotiated with another real estate investment company to solicit investors for a project he claimed to be constructing in the Dominican Republic. During the negotiations, MONAHAN repeatedly touted his prior service with the NYPD as proof of his trustworthiness and as a reason to invest in the project.
In connection with the project, MONAHAN and a co-conspirator, EDWARD ADAMS, who was a New York based attorney, executed agreements that required investor funds to be deposited into escrow accounts that were to be managed by ADAMS. The agreements required that the majority of the funds be deposited in an account to which the defendants would not have access. From October 2008 through February 2009, approximately $4.7 million in investor funds was deposited into the escrow accounts. Shortly after the deposits were made, the funds were improperly withdrawn from the account by ADAMS without disclosure to investors.
In an effort to hide the fact that the funds had been removed from the escrow account, in May 2009, MONAHAN mailed a forged letter on the stationary of a major bank to investors claiming that their money was safely deposited with that bank. In fact, by June 2009, all of the investor funds had been taken from the escrow accounts. At that point, almost no work had been performed on the purported project in the Dominican Republic and no money was returned to investors.
In addition to the prison term, Judge Koeltl sentenced MONAHAN, 44, of New York, New York, to 3 years of supervised release. MONAHAN was also ordered to forfeit $4.7 million.
Mr. Bharara praised the work of the Federal Bureau of Investigation and the Securities and Exchange Commission.
This case is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office's Securities and Commodities Fraud Task Force. Assistant U.S. Attorney John T. Zach is in charge of the prosecution.
U.S. v. James Monahan Indictment
Former Investment Advisor Pleads Guilty to Wire Fraud, Tax EvasionRead the Press Release
ROANOKE, VIRGINIA – A former investment advisor employed by the Roanoke, Va. branch of an unnamed global financial services firm, pled guilty yesterday afternoon in the United States District Court for the Western District of Virginia in Roanoke to wire fraud and tax evasion charges.
Donna J. Tucker, 58, of Roanoke, Va., waived her right to be indicted yesterday afternoon and pled guilty to a two-count Information charging her with one count of wire fraud and one count of tax evasion. In addition, Tucker’s plea agreement holds her accountable for restitution to victims including but not limited to up to $1 million.
“Ms. Tucker violated the trust of her clients and schemed to steal their hard-earned savings,” United States Attorney Timothy J. Heaphy said today. “Our office will continue to use all the resources available to investigate fraud and pursue restitution for its victims.”
According to information presented at yesterday’s guilty plea hearing by Special Assistant United States Attorney Drew Bradylyons, Tucker was an investment advisor in Roanoke from 2007 through April 2013. In August 2010, Tucker forged the signature of one of her clients, an elderly couple who held a joint account, in order to obtain a line of credit, supposedly for the clients, through her firm’s banking arm. Tucker took these actions without the knowledge or consent of the victim.
Approximately one year later, on August 4, 2011, Tucker caused to be transmitted a wire transfer of $295,000 from the victim’s account to her own account at a local credit union. These funds were used to benefit Tucker and her family. In addition, Tucker took steps to ensure the victims did not learn of the unauthorized transfer by instructing others at her firm to place the victims in an all-electronic delivery system that would send the victim’s account statements by email. Tucker also made false statements to the victims, other employees at the firm and created false documents in order to carry out the scheme.
Additionally, in calendar year 2011, Tucker reported to the Internal Revenue Service a taxable income of $125,333. The defendant has admitted to knowingly failing to report additional taxable income of at least $340,000, which resulted in an additional tax of at least $115,000 being owed to the United States.
At sentencing, Tucker faces a maximum possible penalty of up to 20 years in prison and/or a fine of up to $250,000 on the wire fraud charge and a maximum possible penalty of up to five years in prison and/or a fine of up to $250,000 on the tax evasion charge.
The investigation of the case was conducted by the United States Secret Service, the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigations and the Roanoke City Police Department. Assistant United States Attorney Daniel Bubar and Special Assistant United States Attorney Drew Bradylyons are prosecuting the case for the United States.
Former Immigration Officer Convicted at Trial for Taking Bribes and Witness TamperingRead the Press Release
SANTA ANA, California – A former immigration officer was convicted on Friday afternoon in federal court for taking bribes from Cambodian immigrants in exchange for immigration benefits, including granting the immigrants temporary legal status, while he was working in the Santa Ana federal building. The former immigration officer and his wife were also convicted of witness tampering.
Billy Louis Nelms, Sr., 54, of Los Angeles, was convicted of felony counts of conspiracy to commit bribery and defraud the United States, bribery, conspiracy to witness tamper, and witness tampering. Sokhon Nelms, 60, of Los Angeles, was convicted of conspiracy to witness tamper and witness tampering. As a result of Friday's convictions, Mr. Nelms faces a statutory maximum sentence of 95 years, and Mrs. Nelms faces a statutory maximum sentence of 60 years.
The evidence at trial showed that between 2005 and August 2008, Mr. Nelms worked in the Santa Ana federal building as an immigration officer in the Fraud Detection and National Security unit. The evidence showed that during that time, as part of the scheme, the Cambodian immigrants were promised permanent legal status. The Cambodian immigrants were present in the United States without legal status. The immigrants typically paid approximately $5,000 in cash for the permanent legal status. In exchange, Mr. Nelms stamped immigration documents, giving the immigrants temporary legal status in the United States. The evidence at trial showed that following Mr. Nelms’s original indictment in this case for bribery and defrauding the United States in June 2013, Mr. Nelms and Mrs. Nelms tampered with two of the witnesses identified in the original indictment. On one occasion, with Mr. Nelms present, Ms. Nelms told a witness not to speak to anyone.
This case is the product of an investigation by the Department of Homeland Security’s Office of Inspector General (DHS-OIG). The United States Citizenship and Immigration Services (USCIS) and Immigration & Customs Enforcement’s Homeland Security Investigations Forensic Laboratory (HSI-FL) provided assistance in the investigation
Release No. 14-100
Forest Place Apartments' Arsonist Pleads Guilty, Agrees to Pay $12.5 in RestitutionRead the Press Release
Little Rock – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Lacey Rae Moore pleaded guilty to starting the fire that resulted in the complete destruction of the North Building of the Forest Place Apartments on University Avenue in Little Rock. Moore entered her guilty pleas to two counts of arson before United States District Judge J. Leon Holmes.
“There is no way to restore what people lost in the fires set by Lacey Moore at Forest Place Apartments,” stated Thyer. “There is, however, some consolation in this plea today that Ms. Moore is being held responsible for the millions of dollars’ worth of damage to the destroyed buildings, the injuries to the two valiant firefighters and the displacement of residents as a result of the fires she started. I, again, want to commend the agents from the Bureau of Alcohol, Tobacco, and Firearms, and all the members of the Little Rock Fire Department, Arkansas State Police and Little Rock Police Department for heroic efforts at saving lives and their investigative work on a puzzling string of fires. Ms. Moore has been stopped from setting additional fires and will have to pay for the damage she inflicted on so many innocent people in Little Rock.”
In February, Moore was indicted on seven counts of arson following an investigation into seven separate fires that broke out at Forest Place Apartments between February and June of 2013. An eighth count charged her with setting off an unregistered incendiary device at a private residence. The two counts to which Moore pleaded, Counts 4 and 7, stem from the two largest fires at Forest Place in 2013.
Moore pleaded guilty to starting the fire on May 16 (Count 4) that destroyed the North Building, resulting in the evacuation of more than 300 residents, permanently displacing 79 residents, leading to injuries to Little Rock firefighters and caused millions of dollars in damage. Moore also pleaded guilty to starting the fire in the South Building on June 28 (Count 7) that forced another 100 residents to be evacuated. As part of a plea deal, the remaining counts will be dismissed, although Moore said in the hearing today that she set all the fires and she accepts responsibility for paying the restitution owed for all seven Forest Place fires. To date, the amount of known restitution is more than $12.5 million.
Moore faces a statutory sentencing range for starting the May 16, 2013, fire of at least 7 to 40 years imprisonment, and for the June 28, 2013, fire, of at least 5 to 20 years imprisonment. As part of the plea agreement, the United States and Moore agreed to recommend to the sentencing judge, United States District Judge Billy Roy Wilson, that the sentences run consecutively, for a minimum sentence of 12 years.
The investigation was conducted by the ATF, with substantial assistance from the Little Rock Fire Department, the Arkansas State Police and the Little Rock Police Department. The case is being prosecuted by Assistant United States Attorney Chris Givens.
Federal Officer Charged with Witness Tampering for Allegedly Hindering Investigation of Sham MarriageRead the Press Release
CHICAGO — A federal law enforcement officer was indicted on witness tampering charges for allegedly attempting to thwart an investigation of a sham marriage that she arranged a decade earlier. The defendant, ENKHCHIMEG ULZIIBAYAR EDWARDS, was charged with two counts of witness tampering in a federal grand jury indictment that was returned yesterday and announced today.
Edwards, also known as “Eni Edwards, 36, of Carpentersville, a U.S. Customs and Border Protection officer at O’Hare International Airport, will be arraigned on a later date to be determined in U.S. District Court.
The charges resulted from an investigation by the U.S. Department of State, Diplomatic Security Service Chicago Field Office. The U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Department of Homeland Security’s Office of Inspector General assisted in the investigation.
According to the indictment, Edwards arranged for Individual A, a Mongolian citizen, to marry a friend of hers, Individual B, who was a U.S. citizen. Edwards arranged the marriage so Individual A could apply for and obtain U.S. citizenship through marrying Individual B. In July 2003, Individuals A and B were married in Las Vegas. Shortly after they were married, the couple applied for Individual A to become a naturalized U.S. citizen. After the U.S. Citizenship and Immigration Services requested additional information, Individual B failed to provide the requested information and stopped pursuing U.S. citizenship for Individual A. After the naturalization petition was rejected, Individuals A and B divorced in May 2004.
By January 2013, federal law enforcement authorities were conducting an investigation of the role that Edwards played in the marriage of Individuals A and B. On Jan. 8, 2013, and again the following day, Edwards allegedly engaged in witness tampering by attempting to corruptly persuade Individual B, with intent to hinder, delay, and prevent Individual B from communicating information to law enforcement relating to a federal crime.
Each count of witness tampering carries a maximum penalty of 20 years in prison and a $250,000 fine. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Scott F. Collins, Acting Special Agent-in-Charge of the U.S. Department of State, Diplomatic Security Service Chicago Field Office.
The government is being represented by Assistant U.S. Attorney Peter S. Salib.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Federal Inmate Charged with Mailing Threatening CommunicationsRead the Press Release
The United States Attorney for the Middle District of Pennsylvania, announced that charges have been filed against Sinclair L. Atkins who is currently confined at United States Penitentiary Terre Haute, Indiana.
According to United States Attorney, Peter Smith, Atkins, age 63, is charged in a one-count felony information with mailing threatening letters to various federal officials. The offense is alleged to have occurred in November 2011, while Atkins was confined at the United States Penitentiary, Lewisburg, Pennsylvania.
The investigation was conducted by the Federal Bureau of Investigation, and the United States Marshal’s Service. Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
The government also filed a plea agreement in the case which is subject to the approval of the assigned judge.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is ten years imprisonment, and a fine of $250,000. 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.
Father and Son Sentenced for Flathead Cocaine ConspiracyRead the Press Release
MISSOULA -Whitefish father and son, Scott Joseph Hineman, 60, and Benjamin Scott Hineman, 29, were sentenced on July 31, 2014 for conspiracy to distribute cocaine in the Flathead, Montana area. Both defendants were sentenced after pleading guilty on April 22, 2014. Benjamin Hineman was sentenced to 60 months in prison, 5 years supervised release, and $100 special assessment. Scott Hineman was sentenced to 120 month in prison, 5 years supervised release, and $100 special assessment. In addition, Scott Hineman was ordered to forfeit $75,000 and a Harley Davidson motorcycle.
In an Offer of Proof filed by Assistant U.S. Attorney Tara Elliott,
June of 2012, members of the Northwest Drug Task Force (NWDTF) received information from a confidential informant (CI) indicating that Scott Hineman was distributing cocaine in the Flathead, Montana area.
From June of 2012 through March of 2013, the CI purchased varying amounts of cocaine from Hineman at the direction and under the supervision of members of the NWDTF. On April 9, 2013, the NWDTF obtained and executed a search warrant at Hineman's residence. They recovered 828 grams of cocaine and six firearms from the residence.
Hineman later spoke with members of law enforcement and admitted to traveling to Arizona to purchase kilogram quantities of cocaine and re-distributing the cocaine in the Flathead area.
In March of 2013, members of the Northwest Drug Task Force (NWDTF) received information from a confidential informant (CI) indicating that Ben Hineman was distributing cocaine in the Flathead, Montana area. The CI indicated that he had been purchasing cocaine from Hineman for the previous three years approximately twice a month in 1/4 pound quantities. The CI had just purchased five ounces of cocaine from Hineman and gave members of the NWDTF the two ounces he had remaining.
On March 22, 2013, the CI purchased four ounces of cocaine from Hineman at the direction and under the supervision of members of the NWDTF. The CI also paid Hineman $4500 that was owed from the previous purchase of five ounces of cocaine.
On April 9, 2013, the NWDTF obtained and executed a search warrant at Hineman's residence. They recovered 68 grams of cocaine and one firearm from the residence.
The investigation was conducted by Homeland Security Investigations and the Northwest Drug Task Force.
Father and Son Charged with Defrauding Foster FarmsRead the Press Release
FRESNO, Calif. — Surjit Toor, 59, and his son Raju Toor, 34, both of Hilmar, were arraigned in Fresno today for a scheme that defrauded Foster Farms of more than $46,000, United States Attorney Benjamin B. Wagner announced.
A federal grand jury returned an indictment on Thursday, charging the defendants with conspiracy to commit mail fraud and one count of mail fraud for a scheme that billed Foster Farms for work that was never performed. The defendants pleaded not guilty and were released on their own recognizance.
According to court documents, Surjit Toor was a maintenance manager at the Foster Farms processing plant in Livingston, and Raju Toor operated a construction company called Mid State Mechanical (Mid State). Surjit Toor was responsible for hiring third party contractors to work at the plant when needed. The indictment alleges that Raju Toor would submit fraudulent invoices to Foster Farms, and Surjit Toor would approve them in order to cause Foster Farms to pay for work that was never performed.
On February 22, 2012, Surjit Toor caused Foster Farms to send a purchase order to Mid State requesting that Mid State construct a 110-foot inspection catwalk at the Foster Farms processing plant. Raju Toor then sent Foster Farms an invoice for more than $20,000, which Surjit Toor approved. However, an in-house maintenance team had already constructed the catwalk a month earlier. The defendants also received payment for a fraudulent ammonia vessel project involving the modification of a large metal tank designed to hold ammonia, which is part of the plant’s refrigeration system. Surjit Toor caused Foster Farms to send a purchase order to Mid State for this project, and although Raju Toor did not perform any work, he sent an invoice, and Surjit Toor approved payment.
In March 2012, Foster Farms mailed a check to Raju Toor that included payment for the catwalk and ammonia vessel projects. Raju Toor transferred the majority of the funds back to his father.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Grant B. Rabenn and Special Assistant United States Attorney Brian A. Fogerty are prosecuting the case.
If convicted, Surjit Toor and Raju Toor face a maximum statutory penalty of 20 years in prison and a $250,000 fine on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Concord Man Charged with Embezzling $215,000 from SchoolRead the Press Release
A criminal information was filed in U.S. District Court charging the former director of the Cleveland Clinic Foundation Nursing Anesthesiology School with embezzling $215,760.07 from the school, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Paul Blakeley, age 58, of Concord Township, Ohio, is charged in the one-count information. The information alleges that from approximately January 2007 to approximately April 2013, the defendant issued approximately 110 checks drawn on accounts maintained by the school without authorization, and made them payable to his spouse, various merchants and credit card issuers.
In addition, with regard to approximately 50 of the unauthorized checks, the defendant forged the payee’s endorsement before depositing the checks into his personal bank account, according to the information.
As a result of the scheme, the school suffered losses totaling $215,760.
If convicted, the defendant’s sentence will be determined by the court after consideration of the federal sentencing guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant United States Attorneys Robert W. Kern and Miranda Dugi following an investigation by the Cleveland Clinic Protective Operations and the United States Secret Service.
Chinese National, Yiping Qu, Sentenced for Conspiracy to Smuggle Goods from the United StatesRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announced that YIPING QU, 30, a Chinese national who was living in New Jersey, was sentenced yesterday by U.S. District Judge Nannette Jolivette Brown to a 36-month term of imprisonment.
According to court documents, QU pled guilty to an indictment charging him with conspiring to illegally export United States defense articles to China without obtaining required licensing from the Department of State. Upon release from imprisonment, QU is subject to deportation to China.
This case was investigated by Special Agents U.S. Immigration and Customs Enforcement/Homeland Security Investigations and prosecution was handled by Assistant United States Attorney Gregory M. Kennedy.
Cedar Rapids Man Pleads Guilty to Distributing Heroin That Caused Overdose DeathRead the Press Release
A man who distributed heroin to an individual who died from using the heroin pled guilty on July 28, 2014, in federal court in Cedar Rapids.
Austin Allen Martens, age 24, from Cedar Rapids, Iowa, was convicted of distribution of heroin.
In a plea agreement, Martens admitted that he distributed $80 worth of heroin to another individual in March 2013. The purchaser was found deceased the next day, having overdosed after using the heroin distributed by defendant.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Martens remains in custody of the United States Marshal pending sentencing. Martens faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and up to a lifetime of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Dan Chatham and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA, the Linn County Sheriff's Office, the Cedar Rapids Police Department, the Marion Police Department, the Iowa Division of Narcotics Enforcement, and the Sixth Judicial District Department of Correctional Services.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR14-40-1-LRR.
Black P-Stones Gang Member Sentenced to 30 Years in Prison on Racketeering Conspiracy and Firearms ChargesRead the Press Release
Marcellus Williams, aka “Math,” “P-Shooter” and “Manny,” 27, of Newport News, Virginia, was sentenced today to serve 30 years in prison, followed by five years of supervised release, for engaging in numerous gang-related crimes as a ranking member of the Black P-Stones, including shootings of rival gang members, robberies and drug dealing.
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 and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement after sentence was imposed by U.S. District Judge Arenda Wright Allen.
According to a statement of facts filed with his plea agreement, Williams was a “First Superior” in the Black P-Stones, a violent street gang also referred to as the P-Stone Bloods and Cobra Stones. The Black P-Stones operated primarily in the Beechmont, Courthouse Green and Woodview neighborhoods in the Denbigh area of Newport News, Virginia, and its members engaged in various criminal activities including murders, robberies, drug trafficking and obstruction of justice. As a First Superior, Williams directed and participated in the gang’s criminal activities, including robberies, attempted murder and marijuana sales.
According to the statement of facts, on April 27, 2008, Williams and other Black P-Stones members participated in a broad-daylight shooting on Warwick Boulevard in Newport News targeting a rival gang member. The rival was shot twice and injured in his mouth, neck and shoulder.
Additionally, on Dec. 10, 2008, Williams and other Black P-Stones members retaliated against a rival gang member who exhibited disrespect toward Williams’s girlfriend. Approximately seven to eight bullets were fired at the rival gang member’s home in Williamsburg, Virginia, with bullets ripping through the living room and front door while two people were inside.
Further, on March 9, 2009, Williams and other Black P-Stones members shot at the home of a rival gang member in retaliation for a previous altercation. The rival gang member and another individual were inside of the home during the shooting, and one bullet nearly struck one of the people inside.
Williams was charged in a superseding indictment on Dec. 9, 2013, and pleaded guilty on April 15, 2014, to one count of racketeering conspiracy and one count of possessing and discharging a firearm in furtherance of a crime of violence.
The investigation was led by the FBI’s Safe Streets Peninsula Task Force, with the assistance of the Newport News Police Department, James City County Police Department, and the Virginia State Police. The case is being prosecuted by Trial Attorneys Louis A. Crisostomo and Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Eric M. Hurt of the Eastern District of Virginia.Black P-Stones Gang Member Sentenced to 30 Years in Prison on Racketeering Conspiracy and Firearms ChargesRead the Press Release
WASHINGTON – Marcellus Williams, aka “Math,” “P-Shooter” and “Manny,” 27, of Newport News, Virginia, was sentenced today to serve 30 years in prison, followed by five years of supervised release, for engaging in numerous gang-related crimes as a ranking member of the Black P-Stones, including shootings of rival gang members, robberies and drug dealing.
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 and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement after sentence was imposed by U.S. District Judge Arenda Wright Allen.
According to a statement of facts filed with his plea agreement, Williams was a “First Superior” in the Black P-Stones, a violent street gang also referred to as the P-Stone Bloods and Cobra Stones. The Black P-Stones operated primarily in the Beechmont, Courthouse Green and Woodview neighborhoods in the Denbigh area of Newport News, Virginia, and its members engaged in various criminal activities including murders, robberies, drug trafficking and obstruction of justice. As a First Superior, Williams directed and participated in the gang’s criminal activities, including robberies, attempted murder and marijuana sales.
According to the statement of facts, on April 27, 2008, Williams and other Black P-Stones members participated in a broad-daylight shooting on Warwick Boulevard in Newport News targeting a rival gang member. The rival was shot twice and injured in his mouth, neck and shoulder.
Additionally, on Dec. 10, 2008, Williams and other Black P-Stones members retaliated against a rival gang member who exhibited disrespect toward Williams’s girlfriend. Approximately seven to eight bullets were fired at the rival gang member’s home in Williamsburg, Virginia, with bullets ripping through the living room and front door while two people were inside.
Further, on March 9, 2009, Williams and other Black P-Stones members shot at the home of a rival gang member in retaliation for a previous altercation. The rival gang member and another individual were inside of the home during the shooting, and one bullet nearly struck one of the people inside.
Williams was charged in a superseding indictment on Dec. 9, 2013, and pleaded guilty on April 15, 2014, to one count of racketeering conspiracy and one count of possessing and discharging a firearm in furtherance of a crime of violence.
The investigation was led by the FBI’s Safe Streets Peninsula Task Force, with the assistance of the Newport News Police Department, James City County Police Department, and the Virginia State Police. The case is being prosecuted by Trial Attorneys Louis A. Crisostomo and Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Eric M. Hurt of the Eastern District of Virginia.
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