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25 July 2014
Former Princeton, N.J., Youth Soccer Coach Admits Possessing Images of Sexually Exploited ChildrenRead the Press Release
TRENTON, N.J. – A former Princeton, New Jersey, youth soccer coach admitted today that he possessed images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Jorge A. Roman, 49, pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:On May 16, 2014, Roman possessed 600 or more images of child sexual abuse on various DVDs, computers or other digital media at his residence in Princeton. Some of the images in Roman’s possession were images of prepubescent minors engaged in sexually explicit conduct.
The count of possession of child pornography carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for December 15, 2014.U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office in Trenton.
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Defense counsel: Lisa Van Hoeck Esq., Assistant Federal Public Defender, Trenton.
Roman, Jorge Information
Former Police Officer Sentenced to Serve 121 Months in Prison for Receiving Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Stewart Alan Miller, 48, of Columbus, Ohio was sentenced in U.S. District Court to 121 months imprisonment for obtaining and receiving thousands of images and videos of child pornography via the internet and peer-to-peer file-sharing programs from approximately June 2003 through July 2013.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the sentence handed down today by U.S. District Judge Algenon L. Marbley.
Miller pleaded guilty on December 17, 2013 to one count of receipt of child pornography. According to testimony provided by the government during the plea hearing, the FBI began investigating Miller, who was a Columbus Police officer at the time, in October 2013 after receiving a tip. They obtained and executed search warrants at Miller’s residence at the time and a storage facility he rented, recovering various computers and digital media.
A forensic examination of two external drives located in the crawl space above Miller’s bathroom revealed the presence of images and videos of child pornography. The images dated back to 2002. The children in the videos ranged in age from toddler to teenager. The file paths of some of the images indicated that they were originally downloaded via a peer-to-peer file-sharing network. Images and videos of child pornography were also located on a laptop computer seized from the basement of the residence. Additional images of child pornography were recovered from several CDs seized from the storage facility rented by Miller.
“The fact that the defendant was a sworn law enforcement officer at the time he committed this offense actually exacerbates the seriousness of it, as he was violating his duty to protect the public by committing the offense,” Assistant U.S. Attorney Heather Hill told the court prior to sentencing.
Miller was also fined $17,500, ordered to pay restitution of $7,500, and sentenced to remain under court supervision for five years after he completes his prison sentence. During that time, he will be required to register as a sex offender anywhere that he lives, works or goes to school. He must also allow the court to install monitoring software on any computer he owns, uses or has access to that is connected to the internet.
This case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims.
U.S. Attorney Stewart commended the investigation by the FBI Columbus Child Exploitation Task Force, which includes officers from the Westerville Police Department, and Assistant U.S. Attorney Heather Hill, who prosecuted the case.
Former IRS Employee Pleads Guilty to Tax Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former employee of the Internal Revenue Service pleaded guilty in federal court today to leading a conspiracy to steal taxpayers’ identity information in order to receive fraudulent tax refunds.
Taylor S. Knight, 32, of Kansas City, Mo., pleaded guilty before U.S. District Judge Howard F. Sachs to the charge contained in a March 18, 2014, federal indictment.
Knight worked as an employee of the IRS at the office at 333 W. Pershing Rd., Kansas City, from March 2009 to January 2012. Taylor admitted that she abused her position of trust when she inappropriately accessed the information of three taxpayers as part of a conspiracy to defraud the United States by using the stolen identity information to fraudulently induce the IRS into issuing tax refund payments.
For one of the victim taxpayers, Knight submitted a bogus online application for a prepaid debit card that was approved and mailed to an address in Oak Grove, Mo.; this debit card was never used. Knight admitted that she submitted this false online application to test whether her scheme to defraud the IRS was viable.
On Sept. 30, 2011, Knight used the information from two of the victim taxpayers (who were married) to submit a bogus online application for three prepaid debit cards. These debit cards were issued and mailed to the residence of the grandmother of her boyfriend and co-conspirator. According to her plea agreement, Knight admitted that her boyfriend monitored the mail sent to his grandmother’s address and retrieved the three prepaid debit cards. They agreed to use the grandmother’s address rather than use an address associated with Knight in an effort to conceal her role in this conspiracy to defraud the United States.
On Oct. 17, 2011, Knight submitted a 2010 tax return for the same two married victim taxpayers. The IRS approved a $46,572 refund, of which $5,000 was deposited on a debit card that had been obtained by Knight. The IRS attempted to deposit the remaining $41,572 refund on the other debit cards obtained by Knight, but the receiving banks rejected the deposits.
Knight admitted that, at her request, her boyfriend telephoned the IRS and falsely claimed to be the victim taxpayer. He allegedly provided the IRS representative with pertinent personal identification information for both victims and requested the IRS to send the remaining tax refund to a new address located in Independence, Mo. He identified this address because it was his former residence and he knew it was unoccupied.
In August 2011, the victim taxpayers filed legitimate amended tax returns. A $46,734 refund check was sent to the Independence address and was obtained by Knight. Knight admitted that she paid a second co-conspirator $500 to help her cash the refund check. Knight obtained false identification documents – including Social Security cards, credit cards and driver’s licenses – so that they could assume the identity of the victim taxpayers. They attempted to cash the stolen Treasury check at a local convenience store. The clerk was concerned about cashing such a large check and he went to his immediate supervisor for guidance. They told the clerk and his supervisor that, if they would cash the check, they could keep $6,000 of the proceeds. The supervisor decided not to cash the check, but he told them to come back later. When Knight and her co-conspirator returned, the owner reported the incident to law enforcement. Police officers arrived about 10 minutes later and they were arrested.
Under federal statutes, Knight is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Trey Alford. It was investigated by the Treasury Inspector General for Tax Administration.Former High School Teacher Sentenced to 108 Months Imprisonment for Possession and Receipt of Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeffrey Schmutzler, age 43, of Fayetteville, Pennsylvania was sentenced yesterday by Senior United States District Judge William Caldwell to 108 months’ imprisonment, a $15,000 fine and ten years of supervised release following his release from imprisonment after pleading guilty to possession and receipt of child pornography on July 29, 2013.
According to U.S. Attorney Peter Smith, in March of 2013, federal and state law enforcement officers executed a search warrant at the defendant’s home in Fayetteville, Pennsylvania and found several thousand videos and images of material containing child pornography, including 1425 images Schmutzler created using existing child pornographic images and Photo-shopping the cropped images of heads from 136 students at the school where he was employed. Schmutzler was employed as a teacher at Chambersburg High School.
This case was investigated by the United States Postal Inspection Service, the Pennsylvania State Police and the U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI). The case was prosecuted by Assistant United States Attorney Daryl F. Bloom.
Former Ft. Knox Resident Pleads Guilty to Assaulting and Causing Substantial Bodily Injury to One Minor ChildRead the Press Release
LOUISVILLE, Ky. – A former resident of Ft. Knox military base pleaded guilty in U.S. District Court this week to assaulting and causing substantial bodily injury to one minor child and assaulting an adult woman and another minor child announced David J. Hale, United States Attorney for the Western District of Kentucky.
Cynthia L. Marx, age 40, pleaded guilty to three of six counts in a federal indictment before Senior Judge John G. Heyburn II, on Thursday, July 24, 2014.
In Court, Marx admitted that on September 4, 2013, while staying with her friend, L.M.J., in Hardin County, Kentucky, at the Fort Knox military reservation, that she became violent and struck L.M.J. multiple times, that she struck and caused substantial bodily injury to a 14-year- old minor female and that she assaulted a 3-year-old boy.
If convicted at trial, Marx faced a sentence of no more than 29 years in prison, a fine of up to $900,000 and a three-year period of supervised release. Sentencing is scheduled before Senior Judge Heyburn on October 31, 2014, in Louisville.
This case is being prosecuted by Assistant United States Attorney Amanda Gregory and is being investigated by the U.S. Army, Criminal Investigation Command.
Former Federal Employees Sentenced to Prison for Tax FraudRead the Press Release
A married couple from Whidbey Island, Washington, both of whom had lengthy careers as federal employees, was sentenced today to prison for conspiracy to defraud the government and making false or fraudulent claims, announced U.S. Attorney Jenny A. Durkan. DEBRA A. AARON, 60, was sentenced to five years in prison and SAMUEL A. AARON, 71, was sentenced to 30 months in prison. Both were sentenced to three years of supervised release and $723,275 in restitution. SAMUEL AARON had a distinguished military career and then worked for the Federal Aviation Administration for more than 25 years. Noting that service, Chief Judge Marsha J. Pechman told him, “This kind of theft from the government cannot go on. You violated the trust of every veteran; you violated the trust of every school child; you violated the trust of every employee of the FAA.”
According to records filed in the case, in 2008 the AARONs promoted a well-known fraudulent tax scheme known as 1099 OID fraud. Using the scheme, the couple claimed they were owed a tax refund of $723,275. DEBRA AARON filed similar bogus claims on behalf of 30 other people for more than $14 million. Some $4 million was paid out before the IRS caught the fraud. The AARONs used a shell company to launder the proceeds of the scheme and claimed some of the money was used to help impoverished women in third world countries. In fact they used the money for a home remodel, expensive trips to Sedona, Arizona and the Caribbean, lavish outings to Las Vegas and other luxuries.
DEBRA AARON retired following a lengthy career at a variety of government jobs, retiring as a management consultant for the FAA. At the sentencing hearing Chief Judge Pechman told her “I can’t find any other motivation for doing this other than greed…. The public trust has been violated. Chief Judge Pechman noted that DEBRA AARON had recruited at least two of her friends to participate in the scheme, and now “their lives are quite devastated” by their criminal conviction and sentence.
The IRS has repeatedly publicized 1099-OID fraud, warning taxpayers about submitting fraudulent claims. The IRS website states: False Form 1099 Refund Claims
In some cases, individuals have made refund claims based on the bogus theory that the federal government maintains secret accounts for U.S. citizens and that taxpayers can gain access to the accounts by issuing 1099-OID forms to the IRS. In this ongoing scam, the perpetrator files a fake information return, such as a Form 1099 Original Issue Discount (OID), to justify a false refund claim on a corresponding tax return.Don’t fall prey to people who encourage you to claim deductions or credits to which you are not entitled or willingly allow others to use your information to file false returns. If you are a party to such schemes, you could be liable for financial penalties or even face criminal prosecution.
The case was investigated by IRS Criminal Investigation (IRS-CI) and was prosecuted by Assistant United States Attorneys Kate Vaughan and Thomas Woods.
Former Employee Sentenced to 46 Months in Prison for Embezzling More Than $5.1 Million from Non-ProfitMoney Stolen over Eight-Year Period; Non-Profit Alerted Authorities Upon Discovery of the SchemeRead the Press Release
WASHINGTON - Ephonia M. Green, 44, of Upper Marlboro, Md., was sentenced today to 46 months in prison for embezzling more than $5 million from her former employer, a non-profit corporation, announced U.S. Attorney Ronald C. Machen Jr. and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Green pled guilty in November 2013 in the U.S. District Court for the District of Columbia to one count of theft concerning programs receiving federal funds and one count of engaging in illegal monetary transactions. She was sentenced by the Honorable Beryl A. Howell.
Upon completion of her prison term, Green will be placed on three years of supervised release.As part of the plea agreement, Green agreed to criminal forfeiture in the amount of roughly $5.1 million and restitution in the amount of roughly $5.1 million.
According to the government’s evidence, from Jan. 5, 1998, through July 15, 2013, Green was employed by the Association of American Medical Colleges as an administrative assistant. The association, located in Washington, D.C., represents all of the accredited medical schools in the United States and Canada and is responsible for administering the Medical College Admission Test or MCAT.
Green’s duties included processing invoices from the association’s vendors. Separately, Green owned a bridal shop in Upper Marlboro, Md. that conducted business under the name Fabulous Concepts Inc. or FCI.
From July 15, 2005, through July 1, 2013, Green created and submitted false invoices to the Association of American Medical Colleges in the name of three entities – The Brookings Institute, FCI, and the University Health System Consortium, also known as UHC. In doing so, she was seeking payment for services that were never provided and without the association’s knowledge that Green would be the actual recipient of the payments.
Through this fraudulent scheme, Green embezzled approximately $5.1 million from her employer. Although the association received federal program funds each calendar year, none of the money that was embezzled came from federal program funds.
The Brookings Institution is a private, non-profit policy organization based in Washington, D.C., and UHC is an alliance of academic medical centers and hospitals. Green is not affiliated with either entity. Green’s bridal shop, FCI, was never entitled to receive any money from the association. For the false invoices in the name of The Brookings Institute and UHC, Green registered similar trade names with the Maryland Department of Assessments and Taxation and then opened bank accounts in those names.
In announcing the sentence, U.S. Attorney Machen and Assistant Director in Charge Parlave thanked the Association of American Medical Colleges for promptly reporting its discovery of the embezzlement to the U.S. Attorney’s Office in July 2013, and for its full cooperation with the investigation that followed. U.S. Attorney Machen and Assistant Director in Charge Parlave also commended the investigative work of agents and analysts of the FBI’s Washington Field Office. Finally, they praised the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Corinne Kleinman, Deputy U.S. Marshal Wayne Rollock, former Assistant U.S. Attorney David Johnson, and Assistant U.S. Attorney Zia Faruqui, who worked on forfeiture and sentencing issues.
14-173Former Chicago Man Sentenced to More Than 36 Years in Federal Prison on Federal Drug Conspiracy ChargesRead the Press Release
ROCKFORD — A former Chicago, Ill. man was sentenced on July 22, 2014, in federal court on drug conspiracy charges. ROBERT PRESLEY, 34, also known as “Munchie,” was sentenced to 440 months in federal prison, to be followed by 5 years of supervised release. After a nine-day jury trial in the U.S. District Court in Rockford, Presley was convicted on June 14, 2012, of conspiracy to distribute at least one kilogram of heroin, one count of possessing a firearm in furtherance of a drug-trafficking crime, and two counts of being a felon in possession of a firearm.
According to the indictment and evidence at trial, Steven McDowell, 38, formerly of Rockford, also known as “Ty,” was the leader of an illegal drug trafficking operation in Rockford. Beginning as early as April 2010, and continuing into December 2010, the conspirators obtained large amounts of heroin from Chicago, transported the heroin to Rockford where it was diluted for resale and packaged in smaller zip lock bags or baggies for individual use, then grouped into packs. Presley’s role was to obtain raw heroin from Chicago and to assist in the distribution. The defendants used runners to distribute street-level quantities of heroin at numerous locations in Rockford. McDowell and other co-conspirators rented cars that were used to deliver heroin to their street-level dealers, and used cell phones to notify runners where to go to distribute heroin to a customer or for when a runner needed to be resupplied or have money picked up. Some of the co-conspirators, including Presley, used or possessed firearms for protection during their operations.
Two other men were also convicted on June 14, 2012, after the jury trial, and previously sentenced for their roles in the drug conspiracy:
STEVEN T. McDOWELL was convicted of one count of conspiracy to distribute at least one kilogram of heroin, and six counts of distribution of heroin, and was sentenced on Feb. 7, 2013, to 315 months in federal prison for his role in the conspiracy. McDowell was also ordered to serve 5 years of supervised release following his imprisonment.
JEREMY COOPER, 26, formerly of Chicago, also known as “J.D.,” was convicted of one count of conspiracy to distribute at least one kilogram of heroin, three counts of distribution of heroin, one count of possession with intent to distribute heroin, and one count of being a felon in possession of a firearm. Cooper was sentenced on Sept. 18, 2012, to 270 months in federal prison, and 5 years of supervised release following his imprisonment.
In addition, two other men pled guilty to their involvement in the conspiracy:
MURRAY STEVE HARRIS, JR., 38, formerly of Chicago, also known as “M,” pled guilty on Jan. 19, 2012, to conspiracy to distribute at least one kilogram of heroin, and was sentenced on April 19, 2012, to 130 months in federal prison, to be followed by 5 years of supervised release following his imprisonment.NORMAN BREEDLOVE, 48, formerly of Rockford, also known as “Way,” pled guilty on May 24, 2012, to one count of conspiracy to distribute at least one kilogram of heroin, and one count of possessing a firearm in furtherance of a drug trafficking crime, and is awaiting sentencing.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Richard Meyers, Winnebago County Sheriff; and Chet Epperson, Chief of the Rockford Police Department.
The government was represented by Assistant U.S. Attorney Mark T. Karner.
Final Defendant Sentenced in Identity Theft Scheme Involving Miami-Dade County Public Schools Students’ Personal Identifying InformationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Nydia Nelson, 30, of Miami, was sentenced today before U.S. District Judge Cecilia M. Altonaga to 84 months in prison, to be followed by three years of supervised release, and was ordered to pay $87,736 in restitution.
Co-defendants Pamela Rhim-Grant, 40, and Eugene Moss, 33, both of Miami, were sentenced on July 9, 2014, before U.S. District Judge Joan A. Lenard. Rhim-Grant was sentenced to 81 months in prison, to be followed by two years of supervised release. Moss was sentenced to 70 months in prison, to be followed by two years of supervised release. Rhim-Grant and Moss were each also ordered to pay restitution in the amount of $87,736.
Each of the defendants previously pled guilty to one count of computer fraud, in violation of Title 18, United States Code, Section 1030, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, Rhim-Grant was a food service manager at Horace Mann Middle School and an employee of Miami-Dade Public Schools. In connection with her position, Rhim-Grant had network computer access to the Miami-Dade Public Schools’ Integrated Student Information System (ISIS) database through which Rhim-Grant could access information regarding current and former Miami-Dade County Public Schools students' personal identifying information (PII), including names, dates of birth, and social security numbers.
Court documents also state that from approximately October 2012 through January 21, 2014, Rhim-Grant and co-conspirators Moss and Nelson agreed and conspired to access the network computer, with the intent to commit stolen identity fraud, for the purpose of obtaining student PII in furtherance of that fraud. Moss and Nelson placed orders for student PII with Rhim-Grant. Once the order was received, Rhim-Grant accessed the network computer and printed student information sheets containing the PII from the ISIS database and delivered them to either Moss or Nelson at a prearranged location. Once in possession, Moss and Nelson used the student PII to file income tax returns seeking fraudulent refunds. The fraudulent refunds were directed either to prepaid debit cards or accounts controlled by Nelson.
According to court documents, Rhim-Grant was paid $10 per student’s PII in either cash or gift cards. According to Rhim-Grant, approximately 400 students’ PII were fraudulently accessed on the network computer and delivered to Moss or Nelson pursuant to the scheme.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and the Miami-Dade Schools Police Department. The case is being prosecuted by Assistant U.S. Attorney Frank R. Maderal.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Grand Jury Indicts A Dallas County Commissioner, His Chief of Staff and Lobbyists in Multi-Faceted Conspiracy Involving BribesRead the Press Release
DALLAS — A federal grand jury has returned a 13-count indictment charging a long-time Dallas County elected official and three of his associates with various alleged felony offenses stemming from their involvement in conspiracies involving bribes, announced Sarah R. Saldaña, U.S. Attorney for the Northern District of Texas; Diego Rodriguez, Special Agent in Charge, FBI Dallas; and Kelly Carpenter, Assistant Special Agent in Charge, Dallas IRS Criminal Investigation.
The indictment, returned on Wednesday of this week and unsealed this morning, charges John Wiley Price, 64, Kathy Louise Nealy, 61, Dapheny Elaine Fain, 52, and Christian Lloyd Campbell, 44, with various felony counts of conspiracy, tax violations and false statements.
“The indictment unsealed today alleges that for more than a decade, in a shocking betrayal of public trust, Commissioner Price sold his office on the Dallas County Commissioners Court in exchange for a steady stream of bribes. While the vast majority of public officials are honest and maintain high ethical standards, it is unfortunate that some, as alleged in this indictment, choose to serve themselves,” said U.S. Attorney Saldaña. “I thank the hardworking men and women of the FBI and IRS Criminal Investigation who have spent countless hours, indeed years, investigating this case, dissecting his and others’ alleged schemes. Abuse of the public trust cannot and will not be tolerated.”
“The FBI’s top criminal program priority is investigating allegations of public corruption,” said Special Agent in Charge Rodriguez. “The defendants’ alleged actions were designed for personal financial gain at the expense of their constituents and the federal government. These types of actions constitute a breach of the public’s trust, erode confidence in government, and cost taxpayers money and resources.”
“Today’s indictment is a reminder that public officials and private industry who scheme to defraud the U.S. Government and violate the public’s trust will be brought to justice,” said Assistant Special Agent in Charge Carpenter. “Bribery, mail fraud and tax fraud will not be tolerated. IRS Criminal Investigation will continue to work with the U.S. Attorney’s Office and FBI to investigate corrupt behavior wherever we find it.”
According to the indictment, from January 2001 through June 27, 2011, Commissioner Price allegedly accepted more than $950,000 in cash, cars and land from Kathy Nealy, a Dallas lobbyist, in exchange for using his influence and position on the Commissioners Court to act favorably on behalf of Ms. Nealy’s clients and those of Christian Campbell, another consultant in Dallas. These financial benefits, averaging between $5,000 and $10,000 per month, were never disclosed on the Commissioner’s tax returns or on state-mandated Financial Disclosure Statements that he signed under oath and filed with the County Clerk for public inspection.
Not only did Commissioner Price hide these bribery benefits from the public and the IRS, but he also earned income from other businesses that he kept secret, including a business, Man Male Sales (MMS), operated by Dapheny Fain, his chief of staff. All told, Commissioner Price allegedly took in more than $1.1 million that he did not report, filing false and fraudulent income tax returns for 2007, 2008 and 2009. While Ms. Nealy was paying bribes to Commissioner Price, she actively evaded paying more than $600,000 in income taxes that she admitted owing. The indictment also alleges that Ms. Fain made false statements to special agents with the FBI regarding Commissioner Price’s involvement in MMS.
According to the indictment, Ms. Nealy’s business clients were vendors seeking contracts with Dallas County and businesses pursuing matters on which Commissioner Price voted in Commissioners Court. It alleges that Ms. Nealy arranged meetings, dinners, etc. with Commissioner Price for her corporate clients who had business in front of the Commissioners Court, and many of those meetings occurred during periods when contact with elected officials and other county employees was prohibited because the selection process for bids on county contracts was in progress. Commissioner Price sponsored and advocated Ms. Nealy’s clients’ interests, and he voted on these matters in a matter that benefitted them. In return, the indictment alleges, Ms. Nealy provided Commissioner Price with a stream of benefits, in the form of money, cars, and land, totaling approximately $950,000.
Specifically, Price and Nealy are each charged with one count of conspiracy to commit bribery concerning a local government receiving federal benefits; one count of conspiracy to defraud the IRS, and six counts of deprivation of honest services by mail fraud. In addition, Price is charged with three counts of subscribing to a false and fraudulent U.S. Individual Income Tax Return. Nealy is also charged with one count of attempting to evade or defeat payment of tax. Fain is charged with one count of conspiracy to defraud the IRS and one count of making a false statement. Campbell is charged with one count of conspiracy to commit bribery concerning a local government receiving federal benefits.
An indictment is merely an accusation and a defendant is presumed innocent unless proven guilty in a court of law. However, the penalties upon conviction are: 20 years in federal prison and a $250,000 fine for each count of deprivation of honest services by mail fraud and aiding and abetting; five years in federal prison and a $250,000 fine for each count of conspiracy to commit bribery concerning a local government receiving federal benefits, conspiracy to defraud the IRS, attempting to evade or defeat payment of tax, and making a false statement; and three years in federal prison and a $250,000 fine for subscribing to a false and fraudulent U.S. individual income tax return.
The FBI and IRS-Criminal Investigation are conducting this ongoing investigation. Assistant U.S. Attorneys Walt Junker, Katherine Miller, Jay Dewald and Chad Meacham are prosecuting.
El Paso TX Man Pleads Guilty to Cocaine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that ELADIO ARGUELLES, age 26, of El Paso, Texas, pled guilty to an Information charging him with Possession with Intent to Distribute 5 Kilograms or More of Cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
The charge arose from an investigation by the Savanna Police Department and the Drug Enforcement Administration. The defendant was indicted in June 2014.
The Information alleged that on or about April 5, 2014, in the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with the intent to distribute five (5) kilograms or more of a mixture or substance containing a detectable amount of Cocaine, a Schedule II Controlled Substance.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
The statutory range of punishment is not less than 5 years imprisonment or more than 40 and/or up to a $5,000,000.00 fine. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Kyle Waters represented the United States.
Detroit One Collaboration Leads to 33 Arrests and Indictments in Southwest DetroitRead the Press Release
The Detroit One collaboration of local, state and federal law enforcement has led to the arrests and indictments of 33 defendants in southwest Detroit, United States Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by the other members of the Detroit One initiative.
Five individuals were named in a racketeering indictment, unsealed today, alleging violent acts by members of Latin Counts street gang.
In addition to the racketeering defendants, two other defendants were arrested today in a separate indictment on charges of being felons in possession of firearms in southwest Detroit.
In addition, 26 other defendants were recently charged in an indictment with heroin and cocaine distribution and related firearms offenses. These defendants also operated in southwest Detroit.
The racketeering indictment unsealed today charged the following individuals:
- Victor Vasquez, 23, of Detroit, was charged with using and carrying a firearm in furtherance of a crime of violence causing death, assault resulting in serious bodily injury in aid of racketeering and assault with a dangerous weapon in aid of racketeering;
- Avery Denardis, 20, of Dearborn, was charged with assault resulting in serious bodily injury in aid of racketeering;
- Jeffrey Lunsford, 34, of Ecorse, was charged with assault resulting in serious bodily injury in aid of racketeering;
- Kyle Voltz, 24, of Lincoln Park, was charged with assault resulting in serious bodily injury in aid of racketeering;
- Jacob Hixson, 20, of Detroit, was charged with assault resulting in serious bodily injury in aid of racketeering.
The felon in possession indictment unsealed today charged two additional individuals:
- Tim Galvan, 32, of Detroit, was charged with being a felon in possession of a firearm; and
- Luke Reardon, 23, of Detroit, was charged with being a felon in possession of a firearm.
According to the racketeering indictment, the Latin Counts gang operates in southwest Detroit and the downriver communities of Lincoln Park and Ecorse. The indictment alleges that five defendants committed assaults, murder, selling illegal narcotics and stolen firearms, breaking and entering homes and businesses and robbery. The indictment alleges that the gang uses violence to stake out its “turf” and intimidate both rival gang members and the citizens of southwest Detroit.
The indictment alleges that defendant Victor Vasquez aided and abetted in the use of a firearm during a crime of violence, causing the death of Mustafa Al-Yasiry at the Big Apple Market in southwest Detroit on April 18, 2014. According to the indictment, several Latin Count assaulted Al-Yasiry, and one member shot and killed him.
Under the Detroit One Initiative, and through the lead efforts of the Detroit Police Department and the FBI Violent Crime Task Force, which consists of representatives of Homeland Security Investigations, Detroit Police Department, Lincoln Park Police Department, Michigan Department of Corrections, and Michigan State Police, investigators were able to merge separate probes of various members of this organization and its activities into one encompassing investigation.
"The Detroit One partnership is working to reduce violent crime though enforcement and prevention,” McQuade said. “Today's enforcement action is a great example of the impact we can have when federal, state and local law enforcement agencies work together with a united strategy. By arresting and charging individuals who commit violent crimes, we hope to restore peace to our neighborhoods."“As part of the Detroit One initiative, this collaborative investigation targeted some of the most violent criminal offenders in the Detroit metropolitan area,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “Combating violent crime remains among the highest priorities for the FBI. There is nothing more important than protecting our communities and keeping law abiding citizens safe. That effort is being waged each and every day by all of our Detroit One partners. It is tremendously important work, and the officers, agents and prosecutors engaged in this effort will continue to fight on behalf of the citizens we serve."
Detroit One is a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. By working collaboratively, local, state, and federal law enforcement is striving to maximize its ability to identify and arrest the persons and groups initiating the violence in Detroit.- Victor Vasquez, 23, of Detroit, was charged with using and carrying a firearm in furtherance of a crime of violence causing death, assault resulting in serious bodily injury in aid of racketeering and assault with a dangerous weapon in aid of racketeering;
Department of Justice Celebrates 50th Anniversary of the Civil Rights ActRead the Press Release
SHREVEPORT/LAFAYETTE/ALEXANDRIA/MONROE/LAKE CHARLES, La.:United States Attorney Stephanie A. Finley attended a celebration of the 50th anniversary of the Civil Rights Act at a program hosted by the U.S. Justice Department and Howard University held in Washington, D.C., last week.
Attorney General Eric Holder spoke at Howard University in Washington, D.C. on July 15, 2014, in celebration of the 50th anniversary of the Civil Rights Act. The Attorney General gave a short history of the passage of the Civil Rights Act.
The Civil Rights Act was signed into law on July 2, 1964 by President Lyndon B. Johnson, and ended legal segregation in public places and banned employment discrimination on the basis of race, color, religion, sex or national origin. It also blazed a trail for subsequent related legislation: the Voting Right Act, the Fair Housing Act and the Americans with Disabilities Act. Fulfilling the promise of Brown vs. Board of Education, the Act authorized the Department of Education to assist with school desegregation and permits the U.S. Attorney General to file lawsuits to desegregate schools. Additionally, the Act prohibits the unequal application of voting requirements, established the Community Relations Service, and gives enhanced authority to the Commission of Civil Rights.
“We know from our history that advances toward equality and inclusion have never been inevitable,” Attorney General Holder said Tuesday. “Every step forward has been hard-won. The words of our founding documents were not automatically imbued with the force of law. And our nation’s future continues to be defined, and its destiny determined, by men and women of both character and conviction; by courageous people who are unafraid to stand up for what they know to be right; and by patriots who never shrink from the responsibility to draw this country ever closer to its highest ideals.”
The speakers and participants at the 50th anniversary program at Howard University honored the strides that have been made in the journey for equal rights and reminded those in attendance of the work that remains to fully realize that promise. In addition to Howard University Interim President Dr. Wayne A.I. Frederick and the keynote address by Attorney General Eric Holder, the program included remarks from U.S. Secretary of Education Arne Duncan and U.S. Secretary of Labor Thomas Perez, who lead two of the Department of Justice’s key government partners in enforcing the Civil Rights Act. Ambassador Andrew Young, former leader of the Southern Christian Leadership Conference, also delivered remarks.
The D.C. celebration illuminated the importance of the 50-year class reunion of the Peabody High School Class of 1964 held on July 5, 2014, in Alexandria, La. Finley spoke about the transformational events of the Civil Rights Movement that took place in Louisiana and across the nation in 1963 and 1964.More than 100 people attended the Class’ 50-year reunion banquet, including classmates that visited from as far away as California and New Jersey. The Rev. George Price gave the invocation, and classmate Harold Morrison gave the greeting by telling humorous stories and reminding everyone of the importance of the class to the history of Peabody High School. Classmate and former banker Willis L. Spears who has known Finley since she was a child, introduced her to those gathered for the reunion.
“We were happy to have U.S. Attorney Stephanie Finley speak at our 50th class reunion,” reunion chair Lillie Batiste Stewart said. “She brought up highlights of events that took place in the early 1960s while we were in high school and complimented us on still being friends and keeping in touch after 50 years.”
J.B. Lafargue founded Peabody High School in 1895 as the Peabody Industrial School with his wife Sarah C. B. Mayo Lafargue. At the time, it was the only school for black students in Alexandria with grades one to seven. The school was named in honor of the George Peabody Foundation which had awarded a grant to the school. It became a state-approved public school in 1933. Today, Peabody High School is one of two magnet high schools in Rapides Parish. George Peabody was born on February 18, 1795 in Danvers (now Peabody), Massachusetts. In 1867, George Peabody established the Peabody Education Fund, the first education philanthropy in the United States. The purpose of the fund was to help provide education to children of both races in destitute areas of the post-Civil War South.
“The members of this class were on the frontlines of the Civil Rights Movement in the South,” Finley stated. “They graduated high school during a time of great change and struggle. We owe a debt of gratitude to them for the sacrifices they made. Their efforts brought us closer to equality and hope to later generations. I am proud that I was chosen to speak before this distinguished group of men and women.”
In the years since the Act was signed, the struggle to attain the goals contained within has remained. The U.S. Attorney’s Office plays a pivotal role in the administration’s civil rights enforcement priorities. Along with the U.S. Department of Justice’s Civil Rights Division, the U.S. Attorney’s Office has jurisdiction to bring cases under the Civil Rights Act and other related federal statutes.
Finley is the first female U.S. Attorney to serve in Louisiana. She was selected by President Barack Obama in January of 2010, after being recommended by U.S. Senator Mary Landrieu, and confirmed by the U.S. Senate in June of 2010. United States Attorney Finley was sworn into office on June 2, 2010 to serve the Western District of Louisiana as the chief law enforcement officer for 42 of the state’s 64 parishes.
Defendants Enter Guilty Pleas in Child Pornography CasesRead the Press Release
LUBBOCK, Texas — Three defendants charged in unrelated cases appeared yesterday before U.S. District Judge Sam R. Cummings and pleaded guilty to various felony child pornography offenses. In each case, Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
Rocky Joe Williams, 37, of Littlefield, pleaded guilty to one count of transportation of child pornography. He faces a statutory penalty of not less than five years or more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Williams, who is on bond, admitted that he used his cell phone and the Google Picasa Web photo-sharing site on the Internet to transport numerous images of child pornography.
Parker James Chapman, 23, of Lubbock, pleaded guilty to an Information charging one count of attempted possession of child pornography and aiding and abetting. He faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Chapman, who is on bond, admitted that he used his cell phone to communicate with a person he believed to be a minor, under age 18, after responding to an online personal add. That person, however, was an undercover police officer posing as a 15-year-old female. Chapman requested a photograph of the minor, but after he received a non-sexual image of a minor, Chapman requested something “more interesting.” Chapman admitted that in making this request, it was his intent to receive an image of child pornography.
Christopher Anthony Lovato, 30, of Lubbock, pleaded guilty to an Information charging one count of possession of child pornography and aiding and abetting. He faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Lovato, who is on bond, admitted that he used his cell phone to possess numerous images of child pornography that had been received from the Internet.
The cases were brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Lubbock Police Department Internet Crimes Against Children Task Force and the FBI investigated the cases, and the Littlefield Police Department and the Texas Department of Public Safety also assisted in the investigation of the Williams case. Assistant U.S. Attorney Steven M. Sucsy is prosecuting.
Dangerous Felon Gets Five Years for Possessing A FirearmRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick Miles announced today that Jason Paul Arnold, age 32, formerly of Garden, Michigan, received five years in prison for being a convicted felon in possession of a firearm. Arnold was previously convicted by a jury after a one day trial in Grand Rapids on March 17, 2014.
The series of events that led to Arnold’s conviction began in January 2013, when Arnold threatened to start “World War Three” if Child Protective Services (CPS) workers removed his children from his custody. Arnold was temporarily detained by police when CPS did remove his children. While detained, Arnold attempted to commit suicide in a police vehicle. Arnold was involuntarily hospitalized following this suicide attempt. In March 2013, Arnold, who has an extensive adult criminal history that includes violent crimes, again attempted to commit suicide and was hospitalized. In early April, after his release from the hospital, Arnold obtained a Winchester .30-06 caliber rifle and affixed a scope to it. He also purchased five boxes of ammunition and shot most of this ammunition in target practice.
The Michigan State Police learned that Arnold might have obtained this high-powered rifle and questioned him. After Arnold admitted that he possessed the rifle, he was arrested. A search of Arnold’s house resulted in the discovery of the Winchester .30-06 rifle with a round in the chamber, a fully loaded magazine attached and a scope mounted on it. Additional rounds of ammunition were found along with the rifle. Arnold explained to police that he purchased the firearm simply to kill himself, which at a minimum didn’t explain the need for a high-powered rifle, scope and multiple rounds of ammunition.
At sentencing, U.S. District Judge Robert Holmes Bell recognized Arnold posed a danger to the public. He sentenced Arnold to five years in prison because Arnold was not simply going to commit suicide, but was preparing to harm others.
The Michigan State Police and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case. Assistant U.S. Attorney Maarten Vermaat prosecuted it.
END
Court Denies Jeffrey Macdonald’s Motions for A New TrialRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced Senior United States District Judge James C. Fox has denied Jeffrey MacDonald’s latest motions for a new trial. United States Attorney Thomas G. Walker stated, “Today our thoughts turn toward Colette, Kimberly and Kristen MacDonald whose lives were taken tragically by the defendant in this case. We have and will continue to seek justice on their behalf.”
United States District Judge James C. Fox entered an order on July 24, 2014, denying MacDonald’s motions and stating that MacDonald had not made a sufficient showing to permit him to appeal Judge Fox’s decision to the United States Court of Appeals for the Fourth Circuit in Richmond, VA. If MacDonald wishes to appeal, he will now have to ask the Fourth Circuit for permission to appeal the ruling.
MacDonald was convicted in 1979 of the 1970 murders of his pregnant wife Collette, and his two daughters Kimberly, age 5, and Kristen, age 2, at Fort Bragg, NC. Since then, MacDonald has filed numerous challenges to his conviction, all unsuccessful. The latest motions were based on allegations made in 2006 by former U.S. Deputy Marshal Jimmy Britt and DNA test results released in 2006. The District Court found that Britt’s allegations were “incredible and unreliable.” The Court also found that the DNA results did not “constitute exculpatory scientific evidence.”
The Court held a 7-day evidentiary hearing in September 2012 and received extensive briefing in 2013.
The Court stated a separate order would be forthcoming with respect to MacDonald’s 2011 motion requesting additional DNA testing.
The Government is represented in the matter by First Assistant U.S. Attorney John Stuart Bruce, Assistant U.S. Attorney Leslie K. Cooley, and Special Assistant United States Attorney Brian M. Murtagh.
Investigation of this case was conducted by the Army Criminal Investigative Division, and the Federal Bureau of Investigation.
Convicted Felon Sentenced to Prison for Possession of A FirearmRead the Press Release
Jackson, Miss - Jeremy J. Brantley, 33, of Forest, was sentenced to 21 months in federal prison followed by three years of supervised release for possession of a firearm by a convicted felon, U.S. Attorney Gregory K. Davis announced today. He was also ordered to pay a $1500 fine.
Forest Police Officers on patrol in a Forest neighborhood arrested Brantley after he was seen carrying a firearm in his waistband. Brantley has prior convictions for possession of marijuana and burglary of an occupied dwelling.
This case was investigated by the Bureau of Alcohol Tobacco Firearms and Explosives and the Forest Police Department. It was prosecuted by Assistant U.S. Attorney Erin O. Chalk.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.
Convicted Felon Sentenced to Prison for Possession of A FirearmRead the Press Release
Jackson, Miss – Darren K. Smith, 33, of Philadelphia, Mississippi, was sentenced on July 24, 2014 by U.S. District Judge Carlton W. Reeves, Jr. to 23 months in prison followed by three years of supervised release for possession of a firearm by a convicted felon, announced U.S. Attorney Gregory K. Davis.
On March 18, 2014, Smith pled guilty to possession of a firearm by a convicted felon. The crime occurred on the tribal lands of the Mississippi Band of Choctaw Indians. Smith had been convicted of business burglary on November 6, 2000 in the Circuit Court of Neshoba County, Mississippi.
This case was investigated by the Bureau of Alcohol Tobacco Firearms and Explosives and the Mississippi Band of Choctaw Indians 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.
Colombian Cocaine Smuggler Sentenced to More Than 15 Years in Federal PrisonRead the Press Release
Tampa, Florida – Senior U.S. District Judge James S. Moody, Jr. sentenced Luis Alberto Urrego-Contreras to 15 years and six months in federal prison for conspiracy to distribute five kilograms or more of cocaine, knowing and intending that such substance would be unlawfully imported into the United States.
According to court documents, from 2003 until January 2005, Urrego-Contreras, AKA "Bacon," acquired private aircraft and pilots. The acquisitions were made on behalf of Colombian cocaine trafficker Fabio Enrique Ochoa Vasco for the purpose of transporting cocaine from Colombia to Mexico. The cocaine was later imported into the United States for distribution by Ochoa Vasco. In January 2005, Urrego-Contreras arranged the purchase of an airplane from a business in St. Petersburg, Florida. The plane was a Beechcraft King Air model. It was flown first to Brazil then to Venezuela. On June 22, 2005, the plane was supposed to fly from Venezuela to Colombia to retrieve approximately 2,000 kilograms of cocaine. However, the pilot noticed that the designated Colombian airstrip was being monitored by the Colombian Air Force. The pilot then headed back to Venezuela. Upon arrival in Venezuela, the pilot and co pilot were arrested.
On October 28, 2010, Urrego-Contreras was arrested at the American Embassy in Bogota, Colombia. After being read his Miranda rights and signing a Spanish consent form, he agreed to speak to agents. He identified photographs of Ochoa Vasco and others involved in the plane smuggling conspiracy. Urrego-Contreras stated that he was paid between $50,000 $100,000 for each load. Urrego-Contreras admitted that he was responsible for at least 1,000 kilograms of cocaine that was flown from Colombia to Mexico, and later distributed to the United States by Ochoa Vasco.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Drug Enforcement Administration as a part of Operation Panama Express. It was prosecuted by Assistant United States Attorneys Shauna S. Hale and Matthew H. Perry.
Central Iowa Man Sentenced to 10 Years in Prison for Child Pornography OffenseRead the Press Release
DES MOINES, IA – Harold “Hal” Holmstrom, 76, of Minburn, Iowa, was sentenced on federal child pornography charges on July 23, 2014, to the maximum of 10 years in jail, and a lifetime of supervised release thereafter.
In determining the sentence, U.S. District Court Judge John A. Jarvey of the Southern District of Iowa took into account the fact that Holmstrom had sexually abused five female members of his family decades ago when they were small children, which had gone unreported and therefore unaddressed prior to the federal prosecution. Judge Jarvey described the victim impact statements as among the “most difficult” he has read during his tenure on the bench.
Holmstrom was caught using a computer program to download child pornography from the Internet by U.S. Department of Homeland Security, Homeland Security Investigations special agents in 2012. According to HSI, Holmstrom was one of the top ten most active collectors of child pornography on this particular computer program in all of Iowa between 2010 and 2012.
Holmstrom told case agents he had deleted all traces of child pornography from his computer before it was taken from him by law enforcement authorities in August, 2012, but HSI’s computer forensic team was able to recover evidence that he downloaded over 4,800 images of child pornography. The National Center for Missing and Exploited Children reported 1,286 images were of known victims from 69 different child pornography series. Images involved children under 12, bestiality, and violence.
Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
The case was investigated by the U.S. Department of Homeland Security, Homeland Security Investigations, and was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
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Bay St. Louis Woman Sentenced to Prison for Oil Spill FraudRead the Press Release
Gulfport, Miss. – Katisha Lombardo Deroche, 32, of Bay St. Louis, was sentenced on July 24, 2014 by U.S. District Judge Sul Ozerden to six months in federal prison, six months in a community correction center and three years of supervised release for mail fraud in connection with the Deepwater Horizon Oil Spill, U.S. Attorney Gregory K. Davis announced today. She was also ordered to repay $13,600.00 in restitution to the BP Gulf Coast Claims Facility.
Deroche submitted false claims and documentation to the BP Gulf Coast Claims Facility claiming she lost earnings and profits as a result of the oil spill. As a result, she received funds from the Claims Facility to which she knew she was not entitled.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Andrea Jones. It was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.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.
Ardmore Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that NIKEA PAUL LEE, age 38, of Ardmore, Oklahoma, pled guilty to Possession with Intent to Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
The charge arose from an investigation by the Chickasaw Lighthorse Police, the Ardmore Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The defendant was indicted in June 2014.
The Indictment alleged that on or about February 6, 2014, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with the intent to distribute over five (5) grams or more of actual Methamphetamine, a Schedule II Controlled Substance.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
The statutory range of punishment is not less than 5 years and not more than 40 years imprisonment and/or up to a $5,000,000.00 fine. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Kyle Waters represented the United States.
24 July 2014
York Man Sentenced to 35 Years in Federal Child Exploitation CaseRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that Thomas A. O'Connor, 46, of York, Pennsylvania was sentenced to 420 months’ imprisonment by Chief Judge Christopher C. Conner in U.S. District Court in Harrisburg. O'Connor had previously pleaded guilty to production and receipt of child pornography for enticing a young boy to produce sexually explicit videos of himself online. Agents also found thousands of images and videos depicting minors engaged in sexually explicit conduct on computers in O'Connor's home. In addition, O’Connor confessed to sexually abusing a young child with special needs for several years.
This case was brought as part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative designed to protect children from online exploitation and abuse. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Meredith A. Taylor.
Woodstock, Vermont Business Zaya’s Jewelers Located at 12 Central Street Takes Steps to Comply with the Americans with Disabilities ActRead the Press Release
The United States Attorney’s Office for the District of Vermont announces that Zaya’s Jewelers and the owners of 12 Central Street, Woodstock, Vermont have agreed to complete specific modifications to come into compliance with Title III of the Americans with Disabilities Act (“ADA”). Title III of the ADA prohibits a public accommodation from denying an individual or a class of individuals, on the basis of a disability, the opportunity to participate in or benefit from the goods, services, facilities, or accommodations of an entity. Title III requires a public accommodation to remove architectural barriers to access in existing facilities where it is readily achievable to do so. The United States Attorney’s Office’s investigation began following a complaint made to the Vermont Human Rights Commission regarding the accessibility of 12 Central Street, Woodstock, Vermont.
An onsite survey of Zaya’s Jewelers performed by United States Department of Justice architects revealed ADA compliance issues related to the shop’s entrance and interior. Zaya’s Jewelers and the owners of 12 Central Street have remedied ADA compliance issues related to the shop’s entrance.
Zaya’s Jewelers and the owners of 12 Central Street recognized the obligation to address the issues identified in the onsite survey. The owner of Zaya’s Jewelers and the owners of 12 Central Street are to be commended for their cooperation with the Office of the United States Attorney for the District of Vermont.
The Office of the United States Attorney for the District of Vermont worked in partnership with Tracey Tsugawa of the Vermont Human Rights Commission in addressing and resolving these important civil rights issues. Assistant United States Attorney Nikolas P. Kerest, with assistance from the Disability Rights Section of the Civil Rights Division of the Department of Justice, handled this matter on behalf of the United States and is working with other Vermont businesses to resolve their ADA compliance issues. Further information on the ADA and its requirements may be found at www.ada.gov.Williamson County Man Sentenced on Federal Firearm OffenseRead the Press Release
Follow @SDILNewsOn July 24, 2014, Sherman L. Allen, Jr., a/k/a “Larue,” 29, of Marion, Illinois, was sentenced on a federal firearm offense, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Allen, who had previously pled guilty to an indictment charging Unlawful Possession of a Firearm by a Felon, was sentenced to 71 months in federal prison, to be followed by 3 years on supervised release, and fined $200. Evidence at the plea and sentencing hearings established that, on July 29, 2013, agents executed a search warrant at a Marion residence where Allen had been residing. Agents located a Lorcin .25 caliber pistol, which Allen admitted was his. Agents also located evidence of drug distribution, including digital scales and drug packaging materials. Because Allen had previously been convicted of a felony, he is prohibited from possessing firearms.
The investigation was conducted by the Southern Illinois Enforcement Group and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Illinois State Police Special Weapons and Tactics Team and Williamson County State’s Attorney’s Office also assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
West Reading Man Charged with Distributing Child PornographyRead the Press Release
Joshua Latman, 43, of West Reading, PA, was charged today by indictment with distributing and possessing child pornography, announced United States Attorney Zane David Memeger. The Indictment alleges that on June 9, 2013, Latman distributed child pornography, and on August 13, 2013, Latman possessed child pornography.
If convicted, the defendant faces a maximum possible sentence of 30 years of imprisonment.
The case was investigated by the Federal Bureau of Investigation, the Berks County District Attorney’s Detectives Office, and the Lower Heidelberg Township Police Department, and is being prosecuted by Assistant United States Attorney Sarah L. Grieb.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Washington, DC Man Pleads Guilty to Two Armed Robberies in Prince George’s CountyRead the Press Release
FBI Offering Reward for Information Leading to the Identity of a Co-Conspirator
Greenbelt, Maryland – Gregory Evans, age 28, of Washington, DC, pleaded guilty today to conspiracy to interfere with commerce by robbery and brandishing a firearm during a crime of violence.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Mark A. Magaw of the Prince George’s County Police Department; and Maryland Attorney General Douglas F. Gansler.
According to Evans’ plea agreement, on January 22, 2014, Evans and others robbed a store in the 4100 block of Southern Avenue in Capitol Heights, Maryland. Evans and a co-conspirator forced a store employee at gunpoint to open the cash register. While Evans was taking the money from the cash register, his co-conspirator placed a gun to the head of a second victim and stole $785 from the victim’s pockets.
A little over an hour later, Evans and two co-conspirators entered a liquor store located in the 3300 block of Walters Lane in District Heights, Maryland. Evans brandished a black handgun, jumped over the counter, pointed the gun at store employees and ordered the employees to lay on the ground. A second conspirator brandished a silver handgun and stood by the front door. A third, unidentified co-conspirator jumped the counter and removed money from a cash register. Evans then pointed the gun at one of the employees and ordered the employee to open another cash register. Evans then took the money from that register, opened another cash register and removed money from that register as well. Evans and the co-conspirators then left the liquor store, got into a van and fled the area.
A witness saw Evans and the co-conspirators leave the store and followed them. The witness called 911 and relayed a partial Maryland tag number. Law enforcement located the van and pursued the van into Washington DC, where the van came to a stop near 57th Street and Clay Place, NE. Officers saw three or four individuals exit the van and run away. Officers apprehended Evans and co-defendant, Donnell Calloway.
Law enforcement is seeking the identity of the third co-conspirator. The FBI is offering a $5,000 reward for information leading to the arrest of that individual, whose photo is attached. Anyone with information is asked to call the FBI at 410-265-8080.
Calloway, age 28, of Washington, DC, is charged by criminal complaint with conspiracy to interfere with commerce by robbery and brandishing a firearm during a crime of violence. He is currently in federal custody on charges filed in Washington, D.C.
Evans faces a maximum sentence of 20 years in prison for the robbery and a mandatory minimum of seven years and up to life in prison, consecutive to any other sentence, for brandishing a firearm during a crime of violence. Chief U.S. District Judge Deborah K. Chasanow scheduled sentencing for Evans on September 23, 2014 at 2:30 p.m. Evans remains in federal custody.
United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who are prosecuting the case.
Vancouver, Washington Musician Sentenced to nearly Four Years in Prison for Soliciting and Accepting Investments for Fraudulent ProjectsRead the Press Release
A Vancouver, Washington musician and record producer was sentenced on July 22, 2014 to 46 months in prison for wire fraud schemes which lured investors to non-existent music projects, announced U.S. Attorney Jenny A. Durkan. KASEY ANDERSON, 34, pleaded guilty in August 2013, admitting he defrauded investors who believed they were investing in legitimate albums and concerts, including projects featuring major recording artists and celebrities. At the sentencing hearing in U.S. District Court in Tacoma, U.S. District Judge Ronald B. Leighton ordered ANDERSON to pay $594,636 in restitution and said, “the offense is a serious one. You let down a lot of people.”
According to the facts set forth in the plea agreement, ANDERSON admitted that, between 2009 and 2011, he induced more than $500,000 in investments for a number of projects, including a compilation album and concert series featuring well-known artists such as Bruce Springsteen, Pearl Jam, and R.E.M. ANDERSON also sought investors for his own album and tours, and the record of another musician. As part of the solicitation for the compilation album, ANDERSON represented that a portion of the proceeds from the record would support the legal defense fund for the “West Memphis Three,” three men convicted of murder in Arkansas in 1994, who had garnered significant attention and support from people who believed in their innocence. ANDERSON claimed to have agreements signed by various music stars and a family member of one of the West Memphis Three. No such agreements existed. ANDERSON created fake email accounts for prominent music industry members and sent emails from those accounts to further convince investors his project was legitimate. ANDERSON also forged statements from a music-distribution company purporting to show that the project had earned $1.7 million from advance sales.
In addition to the “West Memphis Three” project, ANDERSON solicited investors for three other music-related projects using forged documents and false representations. ANDERSON solicited investors to fund an album of his music, and provided false paperwork indicating that thousands of copies of the album had been sold, earning more than $1.4 million in royalties. In fact the album had earned less than $10,000 in royalties. ANDERSON provided other forged documents indicating he had earned royalties in connection with an album by an unrelated artist, when in fact the album had been released by another record label years earlier. ANDERSON also falsified documents to claim a 2011 concert tour had earned more than $200,000. ANDERSON also sent investors forged bank account statements showing balances of hundreds of thousands of dollars more than existed in the accounts.
In all, ANDERSON took in more than $590,000 from more than 30 investors.
The case was investigated by the FBI and was prosecuted by Assistant United States Attorney Andrew Friedman and former Assistant United States Attorney Thomas Bates.
United States Attorney Announces Two Men Indicted on Drug and Gun ChargesRead the Press Release
California to Seymour methamphetamine distribution operation dismantled
SEYMOUR – Joseph H. Hogsett, the United States Attorney, announced today the indictment of two men who were major methamphetamine distributors in the Jackson County area. Jackie D. Brown, 43, Seymour, was indicted for conspiracy to distribute methamphetamine and possession of a firearm by a convicted felon. Michael Davidson 42, Colton, California, was indicted for conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.
“Keeping our Hoosier neighborhoods safe from those who peddle drugs and illegally possess firearms is a top priority of my office. Those who do not believe me should take note of these two defendants,” said Hogsett.
Court documents allege that Davidson was a source of supply for methamphetamine in the Jackson County area. Law enforcement learned that Davidson would mail-via parcel delivery companies, large amounts of methamphetamine from California to Indianapolis. He would then fly to Indianapolis, rent a car and pick up his packages that allegedly contained methamphetamine for distribution in and around Jackson County.
Through their investigation, law enforcement learned that Davidson would distribute a large portion of his methamphetamine to Brown who would then re-distribute it to other buyers and users. A warrant was served at Brown’s residence on June 4, 2014, and officers found four firearms, two of which were loaded handguns as well as methamphetamine, marijuana, drug paraphernalia and approximately $40,000 in cash. Most of the cash was found in a hidden compartment in a false wall. By law, Brown may not possess a firearm. He was convicted of dealing methamphetamine in 2003 in Jackson County.
“Methamphetamine has become a scourge in many of our Central Indiana communities. All too often the dealers bring not only dangerous drugs but illegal weapons.” said Hogsett. “This is why our Violent Crime Initiative is so important.”
Announced in March of 2011, the Violent Crime Initiative (VCI) represents a district-wide strategy to work with local law enforcement and county prosecutors to combat drug traffickers and criminals that use and carry firearms in their illegal activities. The VCI has produced a dramatic increase in the number of gun-related charges brought federally. In the year preceding the initiative, there were just 14 defendants charged with federal gun crimes by the U.S. Attorney’s Office. In the nearly three years since, more than 330 defendants have been charged.
This investigation was a collaborative effort between the Drug Enforcement Administration, Indiana State Police and the Seymour Police Department. Both men remain in the custody of the United States Marshal Service.
According to Assistant U.S. Attorney Melanie Conour, who is prosecuting the case for the government, Brown and Davidson face up to life in prison if convicted.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
United States Attorney Announces Sentence for Clark County Man on Child Pornography ChargesRead the Press Release
Hogsett continues aggressive fight against child pornography and proves “Operation Community Watch” an ongoing success
NEW ALBANY– Joseph H. Hogsett, United States Attorney, announced today the conviction and sentence of George M. Thornton, 32, Jeffersonville, for possession of child pornography. Thornton was sentenced to 15 years in federal prison by United States District Judge Sarah Evans Barker.
“Protecting the most innocent Hoosier victims is a top priority of this office. Those who question my sincerity will be shown the seriousness of this promise,” said Hogsett.
In 2011, Thornton was apprehended by the Jeffersonville Police Department for peeping into the windows of a residence, specifically into a room occupied by a minor male. Law enforcement officers determined that Thornton was on probation and contacted his probation officer. During a subsequent search of Thornton’s residence, an external hard drive was located. A forensic examination of this hard drive revealed a total of 25 images depicting prepubescent males engaged in sexually explicit activity.
At the time of Thornton’s arrest, a cell phone was recovered from inside his truck near the residence of which he was peeping into windows. The cell phone was found to contain a video of a minor male driving Thornton’s truck while being recorded by Thornton. Also discovered in his truck were two nylon belts and a knife with four circular blades.
In 1999, Thornton was convicted of child molestation in Clark County, Indiana, and sentenced to a period of ten years’ incarceration, with four years suspended to probation. His probation was revoked in 2007 when he was convicted of two counts of possession of child pornography in Clark County, Indiana. Thornton was sentenced to four years’ incarceration and six years’ probation. Thornton was later convicted of failing to register as a sex offender and sentenced to seven years’ incarceration and four years’ probation. Thornton had served only nine months of the probation portion of this sentence when he possessed the child pornography in this case.
“This type of behavior is deplorable and must be stopped,” Hogsett said. “That is why we launched Operation Community Watch last year – to protect Hoosier families and send a message.”
This arrest comes one year after Hogsett announced a comprehensive crackdown on child exploitation in Indiana. In 2013, Hogsett launched Operation Community Watch, which has allowed prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials.
This case was brought as part of Project Safe Childhood, a larger nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 65 defendants, an increase of 25% over the prior year.
Led nationally by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
According to Assistant United States Attorney Joe Vaughn, who prosecuted the case for the government, Thornton will be subject to supervised release for life after serving his sentence.
U.S. Seniors Deceived by Foreign Scammers in Medicare HoaxRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that a federal grand jury in East St. Louis, Illinois, returned an indictment on July 23, 2014, charging three Canadian citizens with defrauding elderly American citizens. Fawaz Sebai, also known as “Frank Sebag,” 36, Vassilios Klouvatos, also known as “Billy Klouvatos,” 29, and Lefkothea Klouvatos, also known as “Thea Klouvatos,” 22, all of Laval, in the province of Quebec, Canada, were each charged with eight counts of mail fraud, wire fraud, and conspiracy to commit mail and wire fraud. Each charge carries a term in federal prison of up to 25 years, a fine of $250,000 and five years of supervised release. Arrest warrants have been issued. The United States Attorney’s Office will seek extradition of the defendants from Canada.
The Indictment alleges that Sebai and Vassilios Klouvatos owned and operated a telemarketing business in Canada that operated under the names of AFD Medical Advisors, LLC, and Clinacall. Lefkothea Klouvatos managed the call center for the business. The telemarketers who worked for the business were provided call lists with the names and telephone numbers of elderly Americans. The telemarketers were instructed to sell prescription drug discount cards to the individuals on the list. According to the indictment, the telemarketers often falsely stated or implied that they were affiliated with programs operated by the United States Government, such as Social Security or Medicare, and led the victims to believe that they were required to purchase this prescription drug discount program in order to continue receiving their Social Security and Medicare. The telemarketers then obtained the victims’ bank account information, which other members of the conspiracy then used to create demand drafts that were debited against the victims’ accounts. The victims were typically charged a fee of $299 for these prescription discount cards, which according to the indictment, were available for free on the internet, and typically provided no benefit for individuals insured by Medicare or private insurance.
The indictment alleges that over 5,000 American citizens, including 7 residents of Southern Illinois, were defrauded by this scam. The scheme was conducted from September 2012, through July 2013, and the total losses exceeded $1,000,000.
“Scammers, especially foreign scammers, see seniors in the U.S. as easy marks. Sadly, these fraudsters have seized on the opportunity to exploit the confusion and uncertainty regarding health care to deceive and con the elderly.” said United States Attorney Wigginton. “These international scammers are mistaken, however, if they believe that international borders will insulate them from the consequences of their criminal acts.”
The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. The Commercial Crime Section (“C.O.L.T.”) of the Royal Canadian Mounted Police in Montreal has conducted its own investigation of this fraudulent organization and has cooperated with United States’ investigative efforts. The prosecution of the case is being handled by Assistant United States Attorneys Michael J. Quinley and Scott A.Verseman.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
Two Sentenced to 6 Years in Federal Prison for Conspiring to Traffic Crystal MethamphetamineRead the Press Release
PROVIDENCE, R.I. – Doneri Aguilar Sandoval, 53, of Attleboro, Mass., was sentenced today to 72 months in federal prison for participating in a conspiracy to traffic approximately 9 kilos of crystal methamphetamine worth more than $310,000, announced United States Attorney Peter F. Neronha and Michael Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration’s (DEA) New England Field Division.
At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Sandoval to serve 5 years of supervised released upon completion of his prison term. Sandoval pleaded guilty on May 2, 2104, to conspiracy to possess with the intent to distribute methamphetamine.
Juan Carlos Espejo Sanchez, 42, of Providence, R.I., a co-defendant in this matter who orchestrated the shipment and delivery of crystal meth to Massachusetts from California while incarcerated in the Bristol County House of Corrections on an immigration detainer, pleaded guilty on June 9, 2014 to conspiracy to possess with the intent to distribute methamphetamine. He was sentenced by U.S. District Court Judge Mary M. Lisi to 72 months in federal prison, to be followed by 10 years of supervised release.
According to court documents, in September 2012, agents assigned to the DEA Worcester, Mass., Tactical Diversion Squad (DEA Task Force) developed information about significant quantities of crystal meth and other controlled substances being trafficked into New England from California. During the investigation, agents learned of a significant sized shipment of crystal meth expected to be shipped into New England in November. Agents tracked the shipment which was concealed inside a hidden compartment of a vehicle being shipped to an automobile storage facility in East Walpole, Mass.
On December 5, 2012, a Massachusetts State Police drug detection canine examined the vehicle at the storage facility and alerted investigators to the presence of narcotic drugs inside a hidden compartment above a rear wheel. The agents seized sixteen packages which they later determined contained approximately 9 kilos of crystal methamphetamine.
According to information presented to the court, DEA Task Force agents, posing as employees of the storage facility, made several attempts to contact the individual to whom the car was scheduled to be delivered. On December 10, 2012, a Task Force undercover agent posing as an employee of a tow truck company was instructed by the intended recipient of the vehicle to deliver the vehicle to a residence in Randolph, Mass. Upon delivery of the vehicle agents observed a vehicle owned by Doneri Sandoval canvasing the area. Shortly after agents dropped off the vehicle a confidential source working with Task Force agents received a call from Sandoval alerting him to the fact that the shipment of crystal meth had arrived and that he was to meet later that day at Twin River Casino in Lincoln, R.I., to complete the drug transaction. Sandoval was arrested by DEA Task Force agents, with the assistance of Lincoln, R.I., police, during the meeting at Twin River Casino.
According to information presented to the court, following Sandoval’s arrest a court authorized search of the Randolph residence resulted in the discovery of identification documents belonging to Juan Carlos Espejo Sanchez, a Mexican national, who was being held at Bristol County House of Corrections in New Bedford on an immigration detainer. Agents also located a letter which provided specific instructions to Sandoval regarding the sale and delivery of the crystal meth, and for receipt and distribution of the payment for the drugs.
The case was prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
The DEA Worcester, Mass., Tactical Diversion Squad was assisted with the investigation by the Massachusetts State Police, and law enforcement officers from the Attleboro, Randolph and Walpole, Mass., Police Departments and Lincoln, R.I. Police Department.
The DEA Worcester, Mass., Tactical Diversion Squad is comprised of law enforcement agents and officers from the DEA, the Norfolk County, Mass., Sheriff’s Office, and the Burlington, Douglas, North Andover, Walpole, Wellesley and Worcester, Mass., Police Departments.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Two Quad Cities Men Face Federal Charges Related to Heroin Overdose Death of Iowa WomanRead the Press Release
Rock Island, Ill. – A Rock Island, Ill., man, Steven Waldrip, 47, made his initial appearance in federal court today to face charges returned by a federal grand jury this week charging him with one count of distributing heroin resulting in death and three counts of distributing heroin, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. Waldrip is scheduled for arraignment and detention hearings tomorrow before U.S. District Judge Sara L. Darrow at 9:00 a.m., in Rock Island.
The indictment alleges that on Dec. 15, 2013, Waldrip distributed heroin that resulted in death. In addition, the indictment alleges that Waldrip distributed quantities of heroin on three occasions: Apr. 28, May 1, and May 29, 2014.
In a separate, but related, case, Kyle Joseph Wilson, 24, address unknown, was indicted by a federal grand jury in April 2014, and charged with one count of distribution of heroin resulting in death. Wilson was arrested on May 12, 2014, and was ordered to remain in the custody of the U.S. Marshals Service. Trial for Wilson is scheduled on Sept. 9, 2014, in Rock Island, before U.S. District Judge Darrow.
The charges against both defendants are the result of investigation of the heroin overdose death of a Bettendorf, Iowa woman, who was found dead at her residence on Dec. 16, 2013. Investigative agencies include the Bettendorf Police Department, Quad Cities Metropolitan Enforcement Group, and U.S. Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Don Allegro.
If convicted, the statutory penalty for distribution of heroin resulting in death is a minimum 20 years in prison to life; if a defendant has a prior felony drug conviction, the statutory penalty is life in prison. For each count of distribution of heroin, the statutory penalty is up to 30 years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.Two Men Sentenced to Decades in Prison for 2008 Slaying of Government WitnessDefendants Found Guilty of Murder, Criminal Street Gang ChargesRead the Press Release
WASHINGTON – Willie Walker, Jr., 24, and Ricky Donaldson, 23, were sentenced today to prison terms of 88 years and 45 years, respectively for violent crimes, including the 2008 slaying of a government witness, announced U.S. Attorney Ronald C. Machen Jr.
Walker and Donaldson were found guilty by a jury in March 2014, following a trial in the Superior Court of the District of Columbia. The jury found them guilty of first-degree premeditated murder while armed with aggravating circumstances; conspiracy to commit first-degree murder while armed; obstructing justice; several firearms offenses; and related criminal street gang charges. The jury also found Walker guilty of charges of aggravated assault and assault with intent to kill for two related shootings in February and March of 2008.
The defendants, both of Washington, D.C., were sentenced by the Honorable John Ramsey Johnson.
“Willie Walker Jr. orchestrated the killing of a government witness from his jail cell, and Ricky Donaldson did the shooting,” said U.S. Attorney Machen. “Now Walker will spend 88 years behind bars and Donaldson will spend 45 years in prison for their cold-blooded efforts to avoid justice at all costs. This case demonstrates our commitment to punish those who target witnesses for simply telling the truth.”
According to the government’s evidence, Walker and Donaldson were members of a criminal street gang that operated in the area of the LeDroit Park neighborhood in Northwest Washington. The gang, known as “LDP,” or “Westside,” sold crack cocaine, among other illicit activities, in the Kelly Miller housing development in LeDroit Park.
On Feb. 4, 2008, after an argument, Walker shot a 55-year-old woman multiple times in the legs. The victim immediately identified Walker as her assailant to law enforcement. A warrant was issued for Walker’s arrest, but he was not immediately apprehended. On March 31, 2008, Walker argued with Delois “Peaches” Persha, 44. Ms. Persha referenced the earlier shooting that Walker had committed, telling him that she would not be treated the same way. In response, Walker shot Ms. Persha multiple times in the torso, and then, as she lay on the ground, multiple times in the face. Ms. Persha survived the attack, and immediately identified Walker as her assailant to law enforcement. For her protection, Ms. Persha, who had grown up in LeDroit Park, was relocated out of the area.
After Walker was arrested and detained in July 2008, he and Donaldson, along with the aid of other LDP gang members, began communicating about hunting down and killing the witnesses against Walker. On Sept. 13, 2008, Donaldson located Ms. Persha, who had returned to the area of LeDroit Park, and fatally shot her multiple times in the back and head. Ms. Persha died from her injuries on Sept. 18, 2008.
The jury found Walker guilty of crimes for his role in the February and March 2008 shootings, as well as the murder of Ms. Persha. Donaldson was found guilty in the murder.
In announcing the sentences, U.S. Attorney Machen praised the work of the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. He also expressed appreciation for the work of the FBI’s Cellular Analysis Survey Team. He commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Marian Russell, Sharece Muschette, Gary Nails, and Rommell Pachoca; Lead Paralegal Specialist Philip Aronson; Supervisory Paralegal Specialist Sharon Newman; Victim/Witness Advocates Jennifer Clark and Yvonne Bryant; Victim/Witness Security Specialists Michael Hailey, Deborah Cannon, M. Laverne Forrest, Katina Adams-Washington, and David Foster; Intelligence Specialist Zachary McMenamin; former Intelligence Specialist Larry Grasso; Criminal Investigators John Marsh and Durand Odom; and Litigation Technology Specialist Leif Hickling.
Finally, U.S. Attorney Machen recognized the work of Assistant U.S. Attorneys Chrisellen Kolb, Elizabeth Danello, David Goodhand, and Suzanne Curt, who provided legal assistance, Assistant U.S. Attorneys Alessio Evangelista and Michael Brittin, who investigated the case, and Assistant U.S. Attorneys Kimberley Nielsen and Jeffrey Pearlman, who prosecuted the case at trial.
14-172Two Men Indicted for Marijuana Cultivation in Lassen National ForestRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Carlos Cortez, 29, and Ismael Rameriz, 24, charging them with conspiracy to distribute marijuana and manufacture of marijuana, United States Attorney Benjamin B. Wagner announced.
According to court documents, in June 2014, during an aerial flight, deputies of the Tehama County Sheriff’s Office saw a large marijuana cultivation site near North Fork Antelope Creek, in Tehama County In the Lassen National Forest.
On July 11, 2014, a multiagency taskforce searched the marijuana cultivation site. Before they entered the site, agents saw Cortez and Rameriz watering marijuana plants. When agents entered, Cortez and Rameriz fled, but were quickly captured. A total of 6,636 marijuana plants were seized and destroyed at the cultivation site.
This case was the product of an investigation by the Tehama County Sheriff’s Office, the United States Forest Service, and California Department of Fish and Wildlife. Assistant United States Attorney Olusere Olowoyeye is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of five years in prison and a $250,000 fine. 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.
Two Eagle Butte Men Charged with Possession of Stolen FirearmsRead the Press Release
United States Attorney Brendan V. Johnson announced that two Eagle Butte, South Dakota, men have been indicted by a federal grand jury for Possession of Stolen Firearms.
Eugene Condon, age 35, and Robert McLane, age 29, were indicted on July 15, 2014. They appeared before U.S. Magistrate Judge Mark A. Moreno and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of custody and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that in October 2013 in Eagle Butte, Condon and McLane knowingly and unlawfully received, possessed, sold and disposed of stolen firearms.
The charges are merely an accusation and Condon and McLane are presumed innocent until and unless proven guilty.The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Condon and McLane were released on bond pending trial. Trial has been set for September 23, 2014.
Two Dodge City Residents Indicted in Alleged Document Fraud RingRead the Press Release
WICHITA, KAN. – Two Dodge City residents – one from Mexico and the other a United States citizen – have been indicted by a federal grand jury here for allegedly selling birth certificates and Social Security cards to undocumented aliens, and then driving them to Oklahoma to obtain state-issued ID cards, U.S. Attorney Barry Grissom said Thursday.
The two, Ronald Davila-Vega, 34, a Mexican national, Sindy [cq] Herrera-Pacheco, 54, a U.S. citizen, were indicted Wednesday on one count of document fraud, one count of transporting illegal aliens, one count of aiding the unlawful production of identification documents, and two counts of aggravated identity theft. Davila-Vega is scheduled to make a first appearance here at 11 a.m. Friday before U.S. Magistrate Judge Karen M. Humphreys. Herrera-Pacheco is being held in the Ford County jail and is expected to be transported to Wichita for a court appearance next week.
According to an affidavit filed in the case, Davila-Vega, himself a person who previously had been deported to Mexico, sold sets of documents for $1,000 to other undocumented aliens in the United States unlawfully so they could obtain employment at southwest Kansas meat packing plants. For another $1,000, Vega and Herrera-Pacheco would drive the buyers to driver’s license offices in Oklahoma so they could obtain a photo ID card. Many of the plants now require a photo ID for new hires, Grissom said.Grissom said investigators and his office are working with Oklahoma officials in the case and to address the problem of fraudulently-obtained ID cards.
The case is being investigated by the Kansas Bureau of Investigation and Homeland Security Investigations in cooperation with the Dodge City Police Department. At least two of the persons who allegedly bought documents from Davila-Vega were teenagers from Central America.
The identification documents sold relate to United States citizens. The investigators are in the process of identifying those persons and notifying them that their identities have been compromised, he said.
If convicted, the defendants face a maximum sentence of 15 years on the document fraud charges, 5 years on the transporting of aliens charges and a mandatory two years in prison on the aggravated identity theft charges. The case is being prosecuted by Assistant U.S. Attorney Brent Anderson.Twelve Ms Army National Guard Soldiers IndictedRead the Press Release
Jackson, Miss - Twelve current or former Mississippi Army National Guard soldiers have been indicted by a federal grand jury for their roles in defrauding the Mississippi Army National Guard’s Recruiter Assistance Program (“GRAP”) which provided financial incentives to enlisted soldiers for assisting in recruiting potential soldiers into the Mississippi Army National Guard, U.S. Attorney Gregory K. Davis announced today.
Antonio L. Hales, 40, of Laurel; Tyrone Strickland, 46, of Pachuta; Ralph Smith, III, 33, of Soso; William David Middleton, 36, of Raleigh; Michael Joseph McNeil, 49, of Louin; Crystal A. Mayers, 32, of West Point; James Anthony Holder, 49, of Bay Springs; Esau Moffett, 27, of Hattiesburg; and Kaya T. Durr, 36, of Hattiesburg are all charged with conspiracy to defraud the United States, conspiracy to steal government funds, conspiracy to commit identity theft, and theft of government funds. The indictment alleges that Hales, McNeil and Moffett provided the personal identification information of recruited soldiers to the other co-defendants for the purpose of filing false GRAP claims. Strickland, Smith, Middleton, Holder, Mayers and Durr falsely represented that they assisted in the recruitment of certain potential soldiers when they had not actually assisted in the recruitment. According to the indictment, the conspiracy began in January 2006 and continued until February 2011.
In a separate indictment, Jamie E. Jackson, 43, of Mendenhall, is charged with six counts of theft of government funds and six counts of wire fraud; and Byron J. Collins, 24, of New Hebron, is charged with making a false statement. The indictment alleges that Jackson, a National Guard Captain, obtained GRAP incentive payments to which he was not entitled because he was a commissioned officer. Byron J. Collins is alleged to have made a false statement to a U.S. Secret Service Agent who was investigating the case when he told the Agent that he had received the GRAP incentive payments when, in actuality, Jamie E. Jackson had received the payments.
A third indictment charges Roshanna Edwards, 43, of Lumberton, with theft of government funds. Edwards is alleged to have received $10,000 in GRAP incentive payments to which she was not entitled.
The Guard Recruiter Assistance Program (GRAP) provided financial incentives to enlisted soldiers for assisting in recruiting potential soldiers into the Mississippi Army National Guard. All enlisted soldiers were eligible to receive incentive payments through the GRAP, except for soldiers whose primary job assignment was recruitment. Commissioned Officers were not eligible to participate in the GRAP. A soldier would receive $1,000 for the enlistment of each potential solider he or she assisted in recruiting to the National Guard. The soldier would receive an additional $1,000 when the potential soldier graduated from basic training.
The statutory maximum penalties faced by the defendants are: five years in prison and a $250,000 fine per count for conspiracy, ten years in prison and a $250,000 fine per count for theft of government funds, five years in prison and a $250,000 fine per count for making a false statement, and twenty years in prison and a $250,000 fine per count for wire fraud.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Texas Doctor Convicted of Health Care Fraud ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A Dallas County, Texas, physician has been convicted of 15 counts of health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Tariq Mahmood, 63, of Cedar Hill, Texas, was found guilty by a jury of conspiracy to commit health care fraud, seven counts of health care fraud, and seven counts of aggravated identity theft following a four day trial before U.S. District Judge Michael Schneider.
According to information presented in court, Mahmood, a general practitioner, owned and operated several hospitals in the state of Texas, including Cozby Germany Hospital in Grand Saline, Renaissance Terrell Hospital in Terrell, Central Texas Hospital in Cameron, Community General Hospital in Dilley, and Lake Whitney Medical Center in Whitney. From January 2010 to April 2013, Mahmood and others carried out a scheme to defraud Medicare and Medicaid through the submission of false and fraudulent claims. Mahmood and others added, changed, deleted, and incorrectly sequenced diagnostic codes in a way that did not reflect the actual diagnoses and conditions of the patients. They submitted false and fraudulent claims to Medicare and Medicaid based on the added, changed, deleted, and incorrectly sequenced diagnostic codes. Mahmood and others also unlawfully used Medicare beneficiaries’ names and Medicare numbers in order to commit health care fraud. Mahmood was indicted by a federal grand jury on April 11, 2013.
Mahmood faces up to 10 years in federal prison for the conspiracy conviction, 10 years for each health care fraud conviction and two years for each aggravated identity theft conviction. A sentencing date has not been set.The case was investigated by the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Federal Bureau of Investigation (FBI), and the U.S. Postal Inspection Service (USPIS). This case was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and Frank Coan and Special Assistant U.S. Attorneys Alma Hernandez and Ken McGurk.
Any individuals with knowledge of these or other health care fraud violations are encouraged to contact the Department of Health and Human Services’ fraud hotline at 1-800-HHS-TIPS (447-8477)
Tampa Man Charged with Military Recruitment FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Travis Devall (47, Tampa) with a conspiracy to commit and the commission of wire fraud, theft of government property and funds, and aggravated identity theft. If convicted, he faces a maximum penalty of 5 years in prison for the conspiracy count, and 20 years’ imprisonment for each wire fraud count. The theft of government property charge carries a maximum penalty of 10 years in prison. He faces a mandatory term of 2 years’ imprisonment for the aggravated identity theft charge. The indictment also notifies Devall that the United States intends to seek a money judgment of approximately $78,000, the proceeds of the charged criminal conduct.
According to the indictment, Devall served for a number of years as a Recruitment Assistant (“RA”) under the Guard Recruiting Assistance Program (“GRAP”). The indictment alleges that, from in or about September 2006 and continuing to at least July 2010, Devall falsely reported that he had obtained the recruitment of numerous recruits into the United States Army National Guard when, in truth and in fact, he had not carried out the tasks which he reported to the Department of Defense in that recruitment process. As a result of the false statements made by Devall, he earned substantial bonus payments for the enlistment of those recruits into the United States Army National Guard.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Army Criminal Identification Division. It will be prosecuted by Assistant United States Attorney Jay L. Hoffer.
Stafford Doctor Indicted for Allegedly Running Pill MillRead the Press Release
ALEXANDRIA, Va. – The former chief of medicine at Stafford Hospital was indicted by a federal grand jury today on 45 counts charging the defendant with operating a chronic pain management practice through which she illegally distributed a wide range of prescription drugs to over 100 patients.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Charles E. Jett, Stafford County Sheriff; and Colonel W. Steven Flaherty, Virginia State Police Superintendent, made the announcement.
Nibedita Mohanty, 56, of Stafford, Virginia, was indicted on one count of participating in a drug trafficking conspiracy to distribute and dispense controlled substances; one count of distributing and dispensing a controlled substance resulting in the death of a patient; two counts of distributing and dispensing controlled substances resulting in serious bodily injury (nonfatal overdoses); thirty-eight counts of distributing and dispensing controlled substances; two counts of aiding and abetting health care fraud; and one count of aiding and abetting money laundering.
Mohanty faces a mandatory minimum sentence of twenty years in prison, and a maximum penalty of life imprisonment and a $10 million fine, if she is convicted of the major drug trafficking charge relating to the death of a patient after consuming oxycodone.
According to the indictment, Mohanty was a physician and served as the Chief of Medicine at Stafford Hospital from June 2009 to February 2013. Starting in 2008, Mohanty represented herself as a chronic pain management doctor and treated over 100 patients. In April 2013, the Virginia Board of Medicine suspended Mohanty’s medical license, and in September 2013, Mohanty surrendered her license for a period of three years.
According to court records, Mohanty distributed controlled substances, often for excessive dosages, to patients outside the bounds of professional practice and with no legitimate medical purpose, in exchange for cash sums paid by these patients for visits. Mohanty also issued a number of prescriptions for controlled substances—such as oxycodone, fentanyl and morphine—despite knowing that her patients were abusing, misusing, distributing or selling the controlled substances.
In May 2011, for example, Mohanty prescribed 760 oxycodone 30 mg tablets, 120 OxyContin 80 mg tablets and 120 Dilaudid 8 mg tablets to a single patient, identified as V.W. in the indictment. On June 1, 2011, V.W. consumed a portion of the oxycodone dispensed by Mohanty, allegedly causing V.W.’s death. In addition, as a result of Mohanty’s prescriptions, other patients allegedly suffered serious bodily injury through nonfatal overdoses.
The indictment further alleges that Mohanty prescribed medications containing buprenorphine, a Schedule III controlled substance, for substance abuse and withdrawal, even though she did not have the requisite DEA license to do so. In addition, Mohanty wrote prescriptions knowing that patients would attempt to fill the prescriptions using their health insurance, thereby causing fraudulent claims to be submitted to the patients’ insurance companies.
As alleged in the indictment, Mohanty received cash payments from her patients, and she used those payments to support a lavish lifestyle and maintain a large home, which included a swimming pool, for which she paid $32,000 cash in numerous denominations stuffed in envelopes.
This case was initiated and investigated by the Stafford County Sheriff’s Office and assisted by the FBI’s Richmond and Washington Field Offices and the Virginia State Police. Assistant U.S. Attorney Gene Rossi and Special Assistant U.S. Attorneys Jennifer Ballantyne and Nicole Grosnoff are prosecuting the case.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-256.
Springfield Businessman Indicted for Bankruptcy Fraud in addition to $3.3 Million Fraud SchemesRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., businessman has been indicted by a federal grand jury for additional bankruptcy fraud, after being indicted last year for a series of bank fraud and wire fraud schemes that totaled more than $3.3 million in losses.
Richard Thomas Gregg, 59, of Springfield, was charged in a 25-count indictment returned by a federal grand jury on Wednesday, July 24, 2014. This superseding indictment replaces the original indictment returned on Feb. 28, 2013, and adds eight additional counts of bankruptcy fraud.
Gregg is charged with four counts of bank fraud, 10 counts of money laundering, two counts of wire fraud and nine counts of bankruptcy fraud.
Gregg was the principal shareholder and director of Southwest Community Bank in Springfield, which failed in May 2010. He and his wife were majority shareholders in Glasgow Savings Bank in Glasgow, Mo., which failed in 2012. Prior to Glasgow Savings Bank’s failure, it was one of the oldest operating banks west of the Mississippi River. Gregg was also a real estate developer, an investor and a licensed insurance agent for the Shelter Mutual Insurance Company. Gregg had ownership interest in and controlled a number of business entities.
More Than $180 Million in Debt
According to the indictment, Gregg and his business entities accumulated substantial debt. On the May 14, 2013, statement of financial affairs Gregg filed in his personal bankruptcy case, he reported owning assets valued at $145,030,779 and total debts of $325,512,798, reflecting a deficiency of $180,482,019. As of Feb. 28, 2013, the indictment says, approximately $14.6 million of the known debt attributable to Gregg and his business entities had been “charged off” by the creditor financial institutions, meaning they had defaulted and the financial institution had “written off” part or all of the loan because it determined the debt was not collectable.
Bankruptcy Fraud
Gregg was a managing member of and decision maker for 1717 Market Place, LLC. He was also designated as the tax matter partner for 1717 Market Place and provided the information to accountants who prepared tax returns for 1717 Market Place. On July 17, 2012, 1717 Market Place filed a Chapter 11 voluntary bankruptcy petition, which was dismissed on March 12, 2013.
Gregg was charged in the original indictment with one count of bankruptcy fraud. On Aug. 14, 2012, Gregg allegedly made false declarations by submitting false Schedules of Assets and Liabilities and a false Statement of Financial Affairs (SOFA) in his bankruptcy proceedings. Gregg stated that the bankruptcy debtor, 1717 Marketplace, LLC, owed him $868,000 for a “personal loan,” and owed another person $801,000 for a “personal loan.” In fact, as Gregg knew, neither he nor the other person had lent 1717 Marketplace, LLC funds in those amounts.
Four of the additional eight counts of bankruptcy fraud also relate to the false statements made by Gregg in the same bankruptcy proceedings.
In submitting the company’s schedules and SOFA, Gregg allegedly omitted any reference to substantial amounts (in excess of $9 million) that he and others owed to 1717 Marketplace. He also allegedly omitted any reference to the company’s payments, totaling approximately $151,000, to himself and another person within the year immediately preceding the date of the bankruptcy filing. Gregg allegedly omitted any reference to his transfer by warranty deed of his interest in two parcels of real estate, a 97.2-acre tract and a 6.4-acre tract, both in Nixa, Mo.
Four of the additional counts of bankruptcy fraud relate to the allegedly fraudulent transfer of property in Gregg’s personal bankruptcy case, which he filed after having been indicted last year for, among other crimes, bankruptcy fraud.
The indictment alleges that Gregg, in contemplation of his bankruptcy case and with the intent to defeat the provisions of Title 11, transferred his interest in two parcels of real estate, the 97.2-acre tract and the 6.4-acre tract in Nixa. The indictment also alleges that Gregg, with the intent to defeat the provisions of Title 11, fraudulently transferred property of the bankruptcy estate when he filed a document with the Christian County Recorder of Deeds that purported to place $250 million in liens on the real and personal property of Gregg and the entities he owned and controlled.
The indictment also alleges that Gregg, with the intent to defeat the provisions of Title 11, fraudulently transferred property of the bankruptcy estate when he signed an offer that purported to place liens on the real and personal property of Gregg and the entities he owned and controlled. On May 24, 2013, after his personal Chapter 11 bankruptcy case was converted to Chapter 7 and a trustee was appointed, Gregg accepted an offer on behalf of FRS, LLC, and 1717 Market Place, of $40 million “in the form of Property Tax Abatement based on a certain lien recording against this subject property.” According to the indictment, however, Gregg’s interests in those companies and in his personal property had become the property of the bankruptcy estate upon the commencement of his personal case on March 19, 2013.
The remaining charges contained in the superseding indictment remain unchanged from the original indictment.
Fremont Property
The federal indictment alleges that Gregg engaged in a scheme to defraud Southwest Community Bank in 2008. As a part of this bank fraud scheme, the indictment says, Gregg sold the bank a piece of commercial real estate at 2814 S. Fremont in Springfield for $1,551,944. Gregg allegedly knew that amount was significantly above fair market value.
Gregg, who was Southwest Community Bank’s principal shareholder and was on its Board of Directors, did not disclose to the bank that he had purchased that property for $775,000 a few months earlier, the indictment says, nor did he disclose to the bank that two appraisals had been conducted on the property in recent months. One appraisal valued the property at $762,000. The second appraisal was cancelled when Gregg disagreed with the preliminary work. After Gregg cancelled the appraisal, the indictment says, his son (who worked at Southwest Community Bank) ordered an appraisal of the Fremont property by another appraiser, who valued the property at $1,580,000. Gregg allegedly did not disclose to the bank that this appraisal was not an independent valuation of the property, but rather was something Gregg had, in essence, directed.
The indictment charges Gregg with four counts of money laundering related to this bank fraud scheme.
Stock Shares
In February 2009 Gregg borrowed $2 million from Great Southern Bank, using 160,000 shares of stock for First Bancshares, Inc. (FBSI), the holding company for First Homes Savings Bank, as collateral. Gregg physically deposited the stock certificate with Great Southern Bank.
According to the indictment, on May 6, 2009, with a $1.5 million balance remaining on the loan from Great Southern Bank, Gregg checked out the original FBSI stock certificate from Great Southern Bank, using as a pretext the stated purpose of separating the large certificate into multiple smaller certificates. He signed a trust receipt promising to return to the certificate to the bank within 30 days. Instead, the indictment says, Gregg deposited the collateralized FBSI shares into his account at Scottrade, a privately-owned retail brokerage firm located in St. Louis, Mo. On May 28, 2009, Gregg allegedly borrowed $440,000 from Scottrade, from the margin account on which the defendant used the FBSI stock as collateral. Gregg chose not to return the FBSI certificate or any proceeds he received to Great Southern Bank, according to the indictment, and instead used the funds for other purposes.
Collectible Cars
The federal indictment charges Gregg with two counts of bank fraud related to schemes to use collectible automobiles as collateral to obtain loans, then sell the automobiles without paying back the loans. In January and February 2010 Gregg allegedly executed separate but related schemes to defraud Great Southern Bank, Metropolitan National Bank and People’s Bank of the Ozarks. As a part of these schemes, the indictment says, Gregg sold seven collectible automobiles at the Barrett-Jackson Auto Auction in Scottsdale, Ariz. Five of the automobiles were encumbered at the three banks.
According to the indictment, Gregg borrowed $400,000 from Great Southern Bank in October 2007, which he secured with four collectible automobiles, including a 2006 Ford GT. Gregg consigned the 2006 Ford GT with the Barrett-Jackson Auto Auction in Scottsdale, Ariz., where on Jan. 23, 2010, the vehicle was sold at auction for approximately $150,000. Gregg allegedly chose to not return the proceeds of the sale of the Ford GT ($138,000 after deducting the auctioneer’s fee) to Great Southern Bank and instead used the funds for other purposes. When Gregg defaulted on the loan, Great Southern Bank realized a $129,644 loss.
According to the indictment, Gregg borrowed $400,000 from Metropolitan National Bank in 2005. He secured this loan with a “floor plan” financing, meaning the loan was a revolving line of credit made against specific pieces of collateral, in this case automobiles. When each vehicle on the floor plan was sold, the loan advanced against that piece of collateral was to be repaid. This loan was renewed in December 2009. In January 2010, the collateral included a 1971 Chevy Cheyenne Pickup. The portion of the loan’s balance collateralized by the 1971 Chevy Cheyenne Pickup was $17,221. Gregg also consigned the 1971 Chevy Cheyenne Pickup with the Barrett-Jackson Auto Auction, the indictment says, and it was sold for approximately $29,000. Gregg allegedly chose to not return the proceeds of the sale ($26,680 after deducting the auctioneer’s fees) to Metropolitan National Bank and instead used the funds for other purposes. When Gregg defaulted on the loan, Metropolitan National Bank realized a $17,221 loss.
The indictment charges Gregg with six counts of money laundering related to these bank fraud schemes.
Oklahoma Casinos
The federal indictment charges Gregg with two counts of wire fraud related to bounced checks at two Oklahoma casinos.
On Jan. 3,2012 Gregg allegedly presented five checks, payable to Buffalo Run Casino in Miami, Okla., each in the amount of $10,000. Gregg allegedly knew his credit union account contained insufficient funds to cover those checks.
Between Feb. 16 and March 1, 2012, Gregg allegedly presented five checks payable to Downstream Casino and Resort in Quapaw, Okla., in the total amount of $60,000. Gregg allegedly knew his bank account contained insufficient funds to cover those checks.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FDIC Office of Inspector General and IRS-Criminal Investigation.Southern California Man Sentenced to 15 Years for Methamphetamine and Gun CrimesRead the Press Release
OAKLAND – Timathe Richard Soto was sentenced yesterday to 15 years in prison for possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm and ammunition, announced United States Attorney Melinda Haag and Nick Annan, Acting Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in San Francisco.
Soto pleaded guilty on May 7, 2014, to violation of 21 U.S.C. § 841(a)(1) and (b)(1)(A)(viii); 18 U.S.C. § 924(c)(1)(A)(i); and 18 U.S.C. § 922(g)(1). According to the plea agreement, Soto admitted that on March 1, 2013, he was pulled over off of I-580 in Oakland, and during a search of the vehicle, California Highway Patrol Officers discovered about three-quarters of a pound of methamphetamine and a Springfield Armory XD 9mm pistol, loaded with 9mm ammunition. Soto had been traveling from Orange County to Ukiah with the intent to distribute the methamphetamine to individuals in Ukiah in exchange for marijuana. Soto possessed the firearm and ammunition in order to protect the drugs and drug proceeds. Soto had previously been convicted of several crimes punishable by imprisonment for a term exceeding one year and was on Post-Release Community Supervision after having been released from state prison in 2012 for assault with a deadly weapon. Soto is a career offender under the federal Sentencing Guidelines, having previously committed more than two controlled substance offenses and crimes of violence.
Soto, age 51, of Orange County, was indicted by a federal grand jury on April 18, 2013.
The sentence was handed down by the Honorable Phyllis J. Hamilton, United States District Court Judge, following a guilty plea to all three counts in the Indictment. Judge Hamilton also sentenced the defendant to a five year period of supervised release. The defendant has been in continuous custody since his arrest.
The prosecution is the result of an investigation by the U.S. Department of Homeland Security, Homeland Security Investigations, and California Highway Patrol.
(Soto indictment )
Shreveport Attorney Sentenced to Federal PrisonRead the Press Release
Department of Justice
Office of Public AffairsSHREVEPORT, LA – A 52-year-old Shreveport, Louisiana attorney has been sentenced to federal prison in the Western District of Texas, announced U.S. Attorney John M. Bales of the Eastern District of Texas.
James Ward Davis pleaded guilty on Apr. 22, 2014 to a false statement in a bankruptcy proceeding and was sentenced to 60 months in federal prison today by U.S. District Judge Donald E. Walker. Davis was also ordered to pay restitution in the amount of $1 million and then immediately remanded into custody of the U.S. Marshals Service.
According to information presented in court, Davis, a lawyer and former member of the Shreveport law firm Jones, Odom, Davis & Politz, operated and controlled Tower Hill Energy Company, LLC, which purported to be in the business of acquiring oil, gas, and mineral leases, interests, and royalties in north Louisiana. In February 2009, Tower Hill entered into an agreement with a Texas company known as Furie Petroleum. By way of the agreement, Tower Hill was obligated to acquire mineral rights on Furie’s behalf. Furie agreed to deposit $1 million to be used by Tower Hill “solely for the acquisition of Mineral Leases or purchase contracts/options to acquire Mineral Leases.” A client trust account for Davis’s law firm was used for escrow. After Furie made the deposit, Davis transferred the $1 million out of the firm’s trust account into a Tower Hill escrow account and then used the funds to address personal and business expenditures. In June 2010,Davis and his wife filed for Chapter 7 bankruptcy in the Western District of Louisiana. They subsequently sought to convert the bankruptcy case from Chapter 7 to Chapter 11. A hearing was held on that motion in August 2010. During the proceeding, Davis falsely stated under oath that Furie was aware of the disposition of the $1million deposit after he removed the funds from the client trust account. In truth, at no time prior to litigation, did Davis advise Furie or its representatives that he had transferred the money out of the Tower Hill escrow account and used the funds for personal and unrelated business purposes.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Eastern District of Texas Assistant U.S. Attorney Frank Coan.
Shiprock Man Pleads Guilty to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Gerald A. Tso, 25, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty this afternoon to an aggravated sexual assault charge. Under the terms of his plea agreement, Tso will be sentenced to ten years in federal prison followed by a term of supervised release to be determined by the court. Tso will be required to register as a sex offender after he completes his prison sentence.
Tso was arrested on Feb. 26, 2014, on a criminal complaint charging him with aggravated sexual abuse of a child, and subsequently was indicted on that same charge on March 26, 2014. According to court filings, Tso sexually assaulted a seven-year-old Navajo child on Feb. 26, 2014, in Shiprock, which is located within the Navajo Indian Reservation.
Today, Tso pleaded guilty to a felony information charging him with aggravated sexual abuse. In entering his guilty plea, Tso admitted engaging in a sexual act with the child. Tso further admitted that the child was under the age of 12 years at the time he victimized the child.
Tso has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Shipping Company Is Sentenced for Illegally Discharging Oily Waste at SeaRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Pacific and Atlantic (Shipmanagers), Inc. (“Pacific and Atlantic”), incorporated in the Marshall Islands with its main offices in Athens, Greece, was sentenced today to a $500,000 fine by United States District Court Judge Gregory M. Sleet for violating the Act To Prevent Pollution From Ships.
According to court documents and statements made in court, Pacific and Atlantic operated the M/V Bulk Victory, a 13,697 gross ton ocean-going cargo ship. On March 7, 2014, the U.S. Coast Guard boarded the vessel in the Delaware Bay Big Stone Anchorage to conduct an inspection. The inspection and subsequent criminal investigation revealed that from January through September 2013, the M/V Bulk Victory discharged overboard, in the open ocean, no less than 34 metric tons of oily bilge water and waste sludge.The Act To Prevent Pollution From Ships is a codification of international treaties known as the “MARPOL Protocol.” To insure that oily waste is properly stored and processed at sea, all ocean going ships entering U.S. ports must maintain an Oil Record Book in which all transfers and discharges of oily waste, regardless of the ship’s location in international waters, are fully recorded. During the Coast Guard boarding on March 7, 2014, crewmen presented the ship’s Oil Record Book, which did not record the relevant overboard discharges.
Pacific and Atlantic was ordered to pay the $500,000 fine immediately, and also placed on probation for three years, during which time the M/V Bulk Victory will be banned from calling on ports of the United States.
“The defendant violated environmental laws that protect our marine environment from harmful pollution,” said U.S. Attorney Oberly. “This conviction ensures that the defendant is held accountable with a criminal fine, as well as a three-year ban from United States ports. The message to the shipping industry is clear: environmental crimes at sea will not be tolerated.”
“I’m so proud of the work of the Coast Guard personnel, particularly those from MSD Lewes, Sector Delaware Bay, and the Coast Guard Investigative Service, who all put in long hours on this case. I’m grateful too, for the support of our District and Headquarters and that of DOJ and others that brought this matter to resolution so quickly,” said Captain Kathy Moore, Commander, Sector Delaware Bay.
This case was investigated by the U.S. Coast Guard Sector Delaware Bay, Coast Guard Marine Safety Detachment Lewes and the Coast Guard Investigative Service. The case was prosecuted by Trial Attorney Stephen Da Ponte in the Environmental Crimes Section of the Department of Justice and Assistant U.S. Attorney Edmond Falgowski from the U.S. Attorney’s Office for the District of Delaware.
Sacramento County Residents Indicted for Tax Refund Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an eight-count indictment today against Sergey Shchirskiy, 38, of Carmichael, and Vladislav Atamanyuk, 27, of Rancho Cordova, charging them with conspiracy to defraud the United States and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, the defendants conspired to file multiple fraudulent tax returns using other people’s identities. The returns falsely claimed refunds based on fraudulently reported income and the Earned Income Tax Credit. The defendants caused the fraudulent refunds to be directly deposited into bank accounts that they controlled.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Michele Beckwith is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 10 years in prison for the conspiracy, and a mandatory two years in prison for identity theft, as well as a $250,000 fine. 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.
Roswell Man Pleads Guilty to Misdemeanor Charge for Assaulting a Federal OfficerRead the Press Release
ALBUQUERQUE – Eddie J. Vallejos, 55, of Roswell, N.M., entered a guilty plea this morning in federal court in Las Cruces, N.M., to a misdemeanor assault on a federal officer charge.
Vallejos was arrested in June 2013, on a criminal complaint alleging that he assaulted an officer of the Federal Protective Service who was on duty at the Joe Skeen Federal Building and U.S. Court House in Roswell. Vallejos subsequently was indicted and charged with a misdemeanor assault on a federal officer charge.
According to the criminal complaint, Vallejos assaulted the officer on June 4, 2013, after the officer sought to question Vallejos about a bag which appeared to contain illegal drugs that fell from Vallejos’ pocket as he emptied his pockets before walking through the security gate at the courthouse. While attempting to flee from the officer, Vallejos physically assaulted the officer by elbowing him in the chest and striking the officer with his knee so that the two men fell down. Vallejos then bit the officer’s hand and drew blood.
During today’s proceedings, Vallejos pled guilty to the indictment. Vallejos has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Vallejos faces a statutory maximum penalty of a year in prison.
The case was investigated by the Federal Protective Service of the U.S. Department of Homeland Security and is being prosecuted by Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office.
Rochester Man Sentenced on Bank and Loan Fraud ChargesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that, Richard Kaufman, of Pittsford, N.Y., who was convicted following a federal jury trial of conspiracy to commit bank and loan fraud, as well as bank and loan fraud, was sentenced to a 46 months in prison and ordered to pay restitution in the amount of $1,360,893.72 by U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorneys Craig R. Gestring and Bradley E. Tyler, who handled the trial of the case, stated that between 2002 and June 2008, the defendant, and his father Michael C. Kaufman, directed the Controller of American Industrial Sales, d/b/a RAK Industries, to provide false financial statements to Key Bank, and to the company’s outside accounting firm. The false financial statements significantly overvalued the accounts receivable and inventory, which were the two assets that Key Bank relied upon as collateral for a total loan credit of $2,000,000.
The loan proceeds were used by the defendants to fund their personal lifestyles including expensive homes, generous salaries and country club memberships. After the defendants defaulted on the Key Bank loan in the summer of 2007, they converted to their personal use approximately $53,000 of accounts receivable proceeds that were the property of Key Bank. As a result of the fraud scheme, Key Bank suffered an immediate loss of over $1.5 million.
Michael Kaufman was also convicted at trial and is awaiting sentencing.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The conviction was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, and Postal Inspectors with the United States Postal Inspection Service under the direction of Shelly A. Binkowski, Postal Inspector in Charge, Boston Division.Rapid City Woman and Wanblee Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, woman and a Wanblee, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine have been sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Rani Bear Heels, age 24, was sentenced on July 18, 2014, to 41 months in custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Dana Provincial, age 36, was sentenced on July 21, 2014, to 16 months in custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Bear Heels was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on December 17, 2013, and she pled guilty on April 11, 2014.
Provincial was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on November 19, 2013, and he pled guilty on March 20, 2014.
From August 2009 through 2013, Bear Heels and Provincial received and conspired to distribute methamphetamine from individuals, including Angel Provincial, Shy Bettelyoun, Clinton Provincial, Robert Provincial, and Diana Bald Eagle, around the Pine Ridge Indian Reservation in South Dakota.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the Federal Bureau of Investigation, the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Bear Heels and Provincial were immediately turned over to the custody of the U.S. Marshals Service.