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23 May 2014
Newport News Man Sentenced to Thirty Years for His Involvement in Hampton ShootoutRead the Press Release
NEWPORT NEWS, Va. – Ryan Fultz, 33, of Newport News, Va., was sentenced yesterday to a total of 30 years in prison following his convictions for possessing and discharging a firearm during a drug trafficking crime, possession with intent to distribute cocaine, and felon in possession of a firearm.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and, Terry L. Sult Hampton Police Chief, made the announcement after sentencing by United States District Judge Henry C. Morgan, Jr.
Fultz was indicted on March 13, 2013, on charges of possession with intent to distribute cocaine base, commonly known as “crack” cocaine, possession, brandishing and discharging a firearm during a drug trafficking crime, and felon in possession of a firearm. On February 7, 2014, a jury convicted him on all charges following a four day jury trial.
According to court records, and evidence at trial, on December 27, 2011, Fultz was present during a planned drug deal in the Wal Mart parking lot located at Cunningham Drive, Hampton, Va. Fultz provided back-up to a drug dealer and when a dispute arose, he participated in a shootout with two other individuals. Fultz discharged a Bushmaster AR-15 high powered rifle during the shooting in which more than 30 shots were exchanged as evidenced by shell casings recovered at the scene. Fultz is the third participant federally prosecuted as a result of this incident.
This case was investigated by the FBI Safe Streets Task Force, Hampton Police Division and ATF’s Washington Field Division. Special Assistant United States Attorney Timothy R. Murphy prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Navy Military Sealift Command Official and Businessman Charged with BriberyRead the Press Release
Scott B. Miserendino, Sr., 55, a former government contractor who performed work for the United States Navy Military Sealift Command , and Timothy S. Miller, 57, a businessman whose company sought contracting business from the Military Sealift Command, were indicted today on charges including conspiracy and bribery.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, Acting U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service Mid-Atlantic Field Office (DCIS), Acting Executive Assistant Director Charles T. May Jr. of the Naval Criminal Investigative Service (NCIS) Atlantic Operations and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement.
A federal grand jury in the Eastern District of Virginia returned a six-count indictment today that charges Miserendino with one count of conspiracy to commit bribery, one count of bribery, one count of conspiracy to commit obstruction of criminal investigations and to commit tampering with a witness, and one count of obstruction of criminal investigations. The indictment charges Miller with one count of conspiracy to commit bribery and two counts of bribery of a public official.
According to the indictment, Miserendino was a government contractor at the Military Sealift Command, the leading provider of transportation for the United States Navy. The indictment alleges that Miserendino worked closely with another Military Sealift Command official, Kenny E. Toy, in managing telecommunications projects and in influencing the award of United States government contracts, subcontracts, and task orders.
The indictment alleges that Miserendino solicited and accepted bribes, in the form of cash, a flat screen plasma television, a wine refrigerator, and other items, in exchange for providing favorable treatment to two companies in connection with United States government contracts.
Between March 2005 and 2007, Miserendino allegedly accepted cash payments of approximately $3,000 per month from agents of Company A, a corporation that sought contracting business from the Military Sealift Command. In total, Miserendino accepted approximately $100,000 in bribes from Company A’s agents.
In addition, the indictment alleges that, in February 2009, Miller and his business partner Dwayne A. Hardman established Company B, a government contracting corporation located in Chesapeake, Virginia, to provide support to the Military Sealift Command on various telecommunications projects. Shortly thereafter, in May 2009, Miller and Hardman allegedly paid cash bribes totaling $50,000 to Miserendino and Toy in exchange for favorable treatment in connection with U.S. government contracts, subcontracts, and task orders.
In addition, as alleged in the indictment, Miserendino obstructed justice and tampered with a witness by causing $85,000 to be paid to Hardman in an attempt to prevent or delay him from reporting the bribery scheme to law enforcement authorities.
Prior to this indictment, five other individuals pleaded guilty in connection with the bribery scheme. On Feb. 12, 2014, Kenny E. Toy, former Afloat Programs Manager for the Military Sealift Command N6 Command, Control, Communication and Computer Systems Directorate, pleaded guilty to bribery and admitted to receiving more than $100,000 in cash bribes in exchange for providing favorable treatment to two companies in connection with U.S. government contracts. On Feb. 18, 2014, Dwayne A. Hardman, Miller’s business partner, pleaded guilty to bribery and admitted to providing more than $140,000 in cash bribes to Toy and Miserendino. On Feb. 19, 2014, Michael P. McPhail pleaded guilty to conspiracy to commit bribery and agreed to forfeit $57,000. On March 5, 2014, Roderic J. Smith pleaded guilty to conspiracy to commit bribery and agreed to forfeit $175,000. On April 4, 2014, Adam C. White pleaded guilty to conspiracy to commit bribery and agreed to forfeit $57,000.
The case was investigated by the DCIS, NCIS and the FBI. The case is being prosecuted by Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Stephen W. Haynie of the Eastern District of Virginia.
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.Multiple Defendant Drug-Trafficking, Firearms Possession, and Dogfighting Superseding Indictments ReturnedRead the Press Release
United States Attorney Charles M. Oberly, III, announced today that a federal grand jury last week returned two superseding indictments charging a total of fourteen men with various violations of federal law. The first indictment contains twenty-three counts and alleged conduct that includes conspiracy to distribute cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 846; distribution of cocaine, in violation of Title 21, United States Code, Sections 841(a)(1); possession of cocaine with the intent to distribute, in violation of Title 21, United States Code, Sections 841(a)(1); and possession of firearms by prohibited persons, in violation of Title 18, United States Code, Section 922(g). The second indictment contains charges relating to the Sponsoring of Animals in Dogfighting Ventures, in violation of Title 7, United States Code, Sections 2156(a)(1).
The charged defendants are Edward Sturgis, age 38 of Dover; Leshawn Ingram, age 28 of Smyrna; Christopher Glover, age 40 of Dover; Robert Ingram, age 30 of Dover; James Wilson, age 49 of Magnolia; Terah Moore, age 36 of Dover; Keith Adkins, age 36 of Dover; William Chapman, age 42 of Dover; Deshawn Groce, age 39 of Dover; Tyshi Hazzard, age 36 of Rehoboth Beach; Dwyane Dixon, age 46 of Dover; Jamar Cannon, age 31 of Dover; Corey Curtis, age 38 of New Castle; and Aaron Cannon, age 27 of Hartley, Delaware.
The drug indictment alleges that between January 2014 and March 2014, in Delaware, Defendants Strugis, Leshawn Ingram, Glover, Robert Ingram, Wilson, and Curtis conspired to possess cocaine with the intent to distribute. The drug indictment also alleges that, on various dates, Defendants Sturgis, Leshawn Ingram, Glover, Robert Ingram, Wilson, Moore, Adkins, Dixon, Jamar Cannon, Corey Curtis, and Aaron Cannon engaged in the distribution of cocaine and/or the possession of cocaine with the intent to distribute it in Delaware. If convicted of any of the conspiracy, distribution or the possession counts, the charged Defendants face up to 20 years imprisonment in addition to fines, and supervised release. Defendants Strugis, Leshawn Ingram, Glover, Robert Ingram, Wilson, and Curtis also face a mandatory minimum sentence of at least five years of imprisonment, and up to forty years in prison, in addition to fines, and supervised release for their alleged conduct.
The dogfighting indictment alleges that between the dates of January 17, 2014 through February 19, 2014, Defendants Sturgis, Robert Ingram, Chapman, Hazzard, and Groce, engaged in a conspiracy and two substantive offenses alleging violations of the federal dogfighting statute. If convicted of any of these offenses, the charged defendants could face up to five years imprisonment, in addition to fines and supervised release.
The indictments and arrests of these individuals were the product of a long-term investigation, led by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Dover Police Department that culminated in the execution of eighteen search warrants, and the seizures of several firearms and controlled substances. Critical support for the investigation and arrests was also provided by the Drug Enforcement Agency, the United States Marshals Service, the United States Department of Agriculture, the Delaware State Police, the Delaware Department of Corrections, the Smyrna Police Department, the Milford Police Department, the New Castle County Police Department, and the American Society for the Prevention of Cruelty to Animals (the “ASPCA”).
Acting ATF Special Agent in Charge William P. McMullan said, “I am confident that the execution of multiple arrest and search warrants by ATF and its law enforcement partners has made a significant impact on crime in Delaware, and specifically in the city of Dover. ATF continues to work complex investigations with its federal, state, and local law enforcement partners in Delaware in order to bring violent criminals to justice.”
“The victims of dog fighting suffer horrific abuse, forced to fight for their lives at the hands of their owners,” said Tim Rickey, vice president, ASPCA Field Investigations & Response. “We commend the local and federal authorities for pursuing this case and are proud to work with them to put an end to this violent crime.”
The charges in the Indictments are only allegations and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and is being prosecuted by Assistant United States Attorney Mark M. Lee.
More American Commercial Colleges, Inc. Executives Plead Guilty to Federal ChargesRead the Press Release
LUBBOCK, Texas — Two executives of American Commercial Colleges, Inc. (ACC), James Michael Otto and Bruce Alan Reed, appeared this morning in federal court in Lubbock, Texas, before U.S. District Judge Sam R. Cummings, and pleaded guilty to federal charges. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement this afternoon.
Otto, 61, of Lubbock, was the Chief Operating Officer and Campus Director for ACC’s Lubbock campus. Reed, 64, of San Angelo, Texas, was the Campus Director for ACC’s San Angelo campus. Otto and Reed each pleaded guilty to an Information, filed earlier this week, charging one count of misprision of a felony, admitting they knew about the criminal activity but failed to report it. Each faces a maximum statutory penalty of three years in federal prison and a $250,000 fine. Judge Cummings ordered presentence investigation reports with sentencing dates to be set following the completion of those reports.
Yesterday, the president of ACC, Doyle Brent Sheets, 58, of Lubbock, and ACC also pleaded guilty to federal charges. ACC stole government funds by converting Federal Student Aid (FSA) program funds, and thus caused a loss to the government of approximately $972,794. Sheets admitted that he knew about the theft but did not report it, and he agreed that he would be personally, individually, jointly and severally liable for the total loss amount.
According to their plea agreements with the government, both Otto, Reed and Sheets are excluded, directly and indirectly from participating in any FSA programs. This voluntary exclusion is also a voluntary debarment, and they will not contest any actions taken to execute the debarment. Each agreed they will not have any ownership or interest in, or serve as an officer, director or any legal entity acting as a post-secondary educational institution participating in any FSA program.
ACC is a proprietary institution with corporate office in Lubbock. At one time, ACC operated five campuses in Texas — Lubbock, Abilene, Odessa, San Angelo and Wichita Falls — and one in Shreveport, Louisiana. ACC admitted that it knowingly converted FSA program funds from its students solely for its benefit to represent falsely to the U.S. Department of Education that it complied with the requirement that a proprietary institution may not derive more than 90% of its revenue from the FSA program to remain eligible to participate in the FSA program. The remaining 10% of revenue must come from other sources. This is known as the 90/10 Rule, and if an institution did not satisfy it, it would lose its eligibility to participate in the FSA programs.
In 2007, 2008 and 2009, ACC failed to meet the requirements of the 90/10 Rule, however, as early as 2003, ACC had devised a scheme to represent falsely to the Department of Education that it had met the requirements. From 2007-2009, ACC had students obtain private loans from a private bank in San Angelo, Texas, with whom ACC had made arrangements, of approximately $953,897. ACC recorded the loan funds received from the private bank as “good cash,” thus falsely representing to the Department of Education that ACC complied with the 90/10 Rule. By obtaining the loans from the private bank and delaying the students’ FSA program funds, ACC lowered their total FSA program funds revenue for the 90/10 Rule. ACC repaid and intended to repay those loans with approximately $972,794 of FSA program funds to give the appearance of complying with the 90/10 Rule. The private short-term loans were obtained entirely to benefit ACC so that it could falsely represent its compliance. To further the scheme, ACC employees advised students that the school would close if they did not satisfy the 90/10 Rule, and this would jeopardize the students’ education at ACC.
Otto admitted participating in the scheme to falsely represent to the Department of Education that ACC met the 90/10 Rule requirements. Otto and Reed identified ACC students who were already enrolled at ACC and eligible to receive FSA program funds, and used these students to obtain the short-term private loans from a private bank. ACC and Reed induced that private bank in San Angelo to provide those short-term private loans, and in 2009, Otto and Reed had students from the San Angelo campus obtain loans from that bank for $65,276.
ACC repaid those loans with approximately $66,606 of FSA program funds to give the appearance of complying with the 90/10 Rule. Otto and Reed each admit knowing that ACC converted $66,606 in FSA program funds from it students to falsely represent it was in compliance.
The United States Department of Education, Office of Inspector General, is conducting the investigation. Assistant U.S. Attorney Paulina Jacobo is in charge of the prosecution.
Military Sealift Command Contractor and Local Businessman Charged with Bribery and Obstruction of Justice SchemesRead the Press Release
Norfolk, Va. – Scott B. Miserendino, Sr., 55, of Stafford, Va., and Timothy S. Miller, 57, of Chesapeake, Va., were charged today with conspiracy, bribery, and obstruction of criminal investigations.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service Mid-Atlantic Field Office (DCIS); Acting Executive Assistant Director Charles T. May Jr. of the Naval Criminal Investigative Service (NCIS) Atlantic Operations; and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office.
A federal grand jury returned a six-count indictment that charges Miserendino with one count of conspiracy to commit bribery, one count of bribery, one count of conspiracy to commit obstruction of criminal investigations and to commit tampering with a witness, and one count of obstruction of criminal investigations. The indictment charges Miller with one count of conspiracy to commit bribery and two counts of bribery of a public official.
According to the indictment, Miserendino was a government contractor at MSC, the leading provider of transportation for the United States Navy. The indictment alleges that Miserendino worked closely with another MSC public official, Kenny E. Toy, in managing MSC’s telecommunications projects and in influencing the award of United States government contracts, subcontracts, and task orders.
The indictment alleges that Miserendino solicited and accepted bribes, in the form of cash payments and other things of value, in exchange for providing favorable treatment to two defense contractors in connection with United States government contracts.
Between March 2005 and 2007, Miserendino allegedly accepted cash payments of approximately $3,000 per month from agents of Company A, a corporation that sought contracting business from MSC.
In addition, the indictment alleges that, in February 2009, Miller and his business partner Dwayne A. Hardman established Company B, a government contracting corporation located in Chesapeake, Va., to provide support to MSC on various telecommunications projects. Shortly thereafter, in May 2009, Miller and Hardman paid cash bribes to Miserendino and Toy, another MSC public official with whom Miserendino worked, in exchange for favorable treatment in connection with U.S. government contracts, subcontracts, and task orders. Miserendino allegedly accepted approximately $25,000 in cash from Miller and Hardman. According to the indictment, Miller provided the $25,000 cash bribe to Miserendino at Company B’s offices and also provided a $25,000 cash bribe to Toy, the MSC public official with whom Miserendino worked.In addition, according to the indictment, Miserendino obstructed justice and tampered with a witness by causing $85,000 to be paid to a businessman who had provided bribes, Dwayne A. Hardman, in an attempt to prevent or delay Hardman from reporting the bribery scheme to law enforcement authorities.
The case is being prosecuted by Assistant United States Attorney Stephen W. Haynie of the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorney Emily Rae Woods, of the Public Integrity Section, Criminal Division, of the Department of Justice. The case was investigated by the FBI, the NCIS, and the DCIS.
Criminal indictments are only charges and not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Maryville Man Sentenced to 17 Years in Prison for Drug and Firearm OffensesRead the Press Release
KNOXVILLE, Tenn. - On May 23, 2014, Dustin Morgan, 36, of Maryville, Tenn., was sentenced to serve 204 months in federal prison by the Honorable Thomas A. Varlan, Chief U.S. District Judge for the Eastern District of Tennessee. The sentence was the result of a conviction at trial in October 2013 on an indictment charging him with drug and firearm offenses in conjunction with Breakthrough Pain Therapy Center in Maryville. Morgan’s step-father, Randy Kincaid and mother, Sandra Kincaid, co-owners of Breakthrough, and family member Wendi Henry were also convicted. Randy Kincaid was sentenced to 830 months and the other co-conspirators are awaiting sentencing.
The indictment and subsequent conviction of Morgan and his co-defendants resulted from a lengthy investigation by the Internal Revenue Service–Criminal Investigation Division, Fifth Judicial Drug Task Force, and Drug Enforcement Administration into illegal distribution of narcotics, structuring of monetary transactions and money laundering associated with Breakthrough Pain Therapy Center. Breakthrough ceased operation in December 2010 when federal and local law enforcement agents seized significant quantities of prescription narcotic pain pills, firearms, and nearly $700,000 in cash from the Center and the conspirators./p>
U.S. Attorney William C. Killian said, “The cooperation and diligence of these local, state and federal agencies resulted in an appropriately severe sentence for this individual who was illegally distributing large amounts of addictive pills in East Tennessee.”
Assistant U.S. Attorneys Jennifer Kolman and Frank M. Dale, Jr. represented the United States during the trial and sentencing.
Maryland Man Sentenced to Nine-Year Prison Term for Attacking Woman Near Northeast Washington Metro StationTwo Good Samaritans Came to Victim’s Aid, Helped Police Apprehend the DefendantRead the Press Release
WASHINGTON – Quamain Jacks, 23, of Hyattsville, Md., was sentenced today to a nine-year prison term on charges stemming from an attack in January 2013 against a woman near a Metro station in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Jacks, also known as Kwamane Jacks, was found guilty by a jury in February 2014, following a trial in the Superior Court of the District of Columbia, of felony threats, kidnapping, misdemeanor sexual abuse, simple assault and malicious destruction of property. He was sentenced by the Honorable William M. Jackson. Upon completion of his prison term, Jacks will be placed on five years of supervised release.
According to the government’s evidence, Jacks accosted the 26-year-old victim in the early evening hours of Jan. 17, 2013, as she was walking home from the Brookland Metro station in Northeast Washington. Jacks, a stranger, ran up behind her and grabbed her buttocks. The victim turned, faced Jacks, pushed him off her, and kept walking.
About two blocks later, Jacks approached the victim again, asked her if she “wanted to die” and began dragging her behind a line of trees. He punched her repeatedly, breaking her glasses. He then put his hand over her mouth to keep her from screaming as he straddled her and ran his hand along the rim of her tights. She bit him as a result.
Two students from Catholic University came to the victim’s rescue and chased Jacks off of the victim. After getting the victim into their home across the street from the scene of the crime, these Good Samaritans noticed a man who looked like the attacker, outside in the area near the front of their home. They asked the victim to look out at him and she immediately recognized the defendant as the man who attacked her both times. Jacks was subsequently arrested.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates Tracey Hawkins and Katina Adams-Washington; Paralegal Specialist Tiffany Jones; members of the Litigation Technology Unit, and Assistant U.S. Attorney Kenya K. Davis, who prosecuted the matter.
14-120Margate Man Sentenced to Ten Years in Prison on Charges He Made and Possessed A Pipe BombRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announce that Richard A. Heyn, 49, of Margate, was sentenced to 120 months in prison and three years of supervised release following his conviction in February on charges that he made and possessed an unregistered destructive device.
According to court records and evidence at trial, Heyn made and possessed a pipe bomb in August 2011, which he camouflaged with black spray paint and attached to the under carriage of the SUV driven by a man living Boca Raton. At the time, Heyn had had a two year long extramarital affair with the man’s wife, which affair the wife was attempting to end.
During the seven day trial, evidence was presented which linked Heyn to the components used in the pipe bomb. In addition, explosives experts from ATF testified that the pipe bomb found on the husband’s vehicle had all the components of a destructive device, capable of creating a “small cratering in the road” and serious physical injury or even death to those in the vicinity of the explosion.
Mr. Ferrer commended the investigative efforts ATF and the Palm Beach County Sheriff’s Office. Mr. Ferrer also thanked the Computer Crime Laboratory of the Department of Justice for their assistance in analyzing computer evidence. This case was prosecuted by Assistant U.S. Attorneys Aurora Fagan and Alexandra Hui
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.
Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that United States District Judge John M. Gerrard sentenced Jorge Ortiz-Lopez, also known as Moreno, to 292 months in federal prison, followed by 5 years of supervised release.
Mr. Ortiz-Lopez pled guilty to conspiracy to distribute methamphetamine on February 25, 2014. Ortiz-Lopez had been involved in the distribution of methamphetamine in the Lincoln and eastern Nebraska area for several years. He received large quantities of methamphetamine from Phoenix, Arizona, which he distributed to other dealers in the Lincoln and eastern Nebraska areas. The Court found that Ortiz-Lopez managed other methamphetamine dealers in Nebraska, and maintained an apartment where drugs were stored.
A search on October 23, 2013, of the apartment of one of individuals Ortiz-Lopez supervised, uncovered nearly $40,000.00 in cash. From that apartment the police also recovered 9.6 pounds of methamphetamine. A search of another location in Lincoln uncovered over $53,000.00 in cash belonging to Ortiz-Lopez. Ortiz-Lopez is expected to be deported to his native Mexico after serving his prison sentence.
This case was investigated by the FBI and the Lincoln/Lancaster County Narcotics Task Force.
Man Found Guilty of Voluntary Manslaughter While Armed in May 2012 Stabbing in Northwest WashingtonDefendant Started Argument, Leading to AltercationRead the Press Release
WASHINGTON - Jonathan Dawkins, 32, of Washington, D.C., was found guilty by a jury today of voluntary manslaughter while armed in the stabbing of a man in May 2012 in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
The verdict was returned in the Superior Court of the District of Columbia, following a three-day trial. The Honorable Russell F. Canan scheduled sentencing for Aug. 8, 2014. Dawkins faces a statutory maximum of 30 years in prison.
According to the government’s evidence, on May 1, 2012, at about 2:15 a.m., the victim, Dwayne Brisbon, 33, was stabbed to death in the 400 block of Florida Avenue NW. Mr. Brisbon, a CT scan technician at Washington Hospital Center, was on his way home from Marvin, a bar and restaurant in the 2000 block of 14th Street NW. On his way home, Mr. Brisbon pulled his car over to check on a person he recognized from the establishment.
Dawkins, who was walking with the person, became upset and aggressively approached Mr. Brisbon’s car. Dawkins began arguing with Mr. Brisbon. Mr. Brisbon eventually got out of his car and walked to the rear of the car, where Dawkins met him. Mr. Brisbon punched Dawkins, and the two continued to fight. During the fight, Dawkins stabbed Mr. Brisbon in the upper left bicep and the neck, piercing his carotid artery and jugular vein.
Dawkins then fled the scene while Mr. Brisbon got back in his car in an attempt to drive himself to the hospital. Mr. Brisbon lost consciousness within seconds, and crashed into Shaw’s Tavern in the 500 block of Florida Avenue NW. Surveillance video from Shaw’s Tavern captured the defendant and the person who was with him just minutes before the murder.
In announcing the verdict, U.S. Attorney Machen commended the work of members of the Metropolitan Police Department, who investigated the case. U.S. Attorney Machen also thanked those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Mia Beamon and Kelly Blakeney; Victim/Witness Services Coordinators La June Thames and Katina Adams-Washington; Litigation Support Specialist Kimberly Smith; Criminal Investigator Durand Odom; and Victim Witness Specialist Tamara Ince. Finally, U.S. Attorney Machen expressed appreciation for the work of Assistant U.S. Attorneys Holly Shick and Veronica Sanchez, who prosecuted the case.
14-121Lutz Woman Pleads Guilty to Wire FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Patricia M. Syling (44, Lutz) yesterday pleaded guilty to wire fraud. She faces a maximum penalty of twenty years in federal prison. As part of her plea agreement, Syling also agreed to forfeit a residence in Lutz.
According to the plea agreement and other court documents, Syling gained employment in October 2007 with Citrus Health Care, Inc. (“CHC”), a health maintenance organization located in Tampa. Her title was Director of Compliance. To secure the position with CHC, Syling used a false name (Patricia Dunne) and other false personal information in her CHC employment application, including a false social security number, prior work history, and education history. Syling used the false information because at the time, she was under federal indictment in the District of Hawaii (Case No. 07-CR-406SOM), charged with eight counts of mail fraud.
Shortly after securing employment at CHC, Syling opened a bank account at Regions Bank in the name of Health Solutions Group, LLC (“HSG”), a company created and controlled by her. Thereafter, she created fraudulent documentation to support bogus invoices submitted by HSG, and other like sounding names, to CHC, which Syling then approved for payment. For example, in July 2007, using her position at CHC and still posing as Patricia Dunne, Syling provided fraudulent information to a member of the CHC Board of Directors in order to cause that person to initiate an interstate wire transfer of $395,000 from CHC’s SunTrust bank account to the HSG bank account controlled by the Syling at Regions Bank. Syling then used a portion of the proceeds from the wire transfer to purchase a home in Lutz, Florida.
In March 2009, Syling pleaded guilty to the eight mail fraud charges in the District of Hawaii. On June 3, 2009, she was sentenced to 40 months in federal prison. She was released in June 2013. A superseding indictment was returned in the Middle District of Florida case in July 2013.
This case was investigated by Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Jay G. Trezevant.
Lubbock County Man Sentenced to 188 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas — Adrian Tino Guerrero, 28, of Slaton, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to188 months in federal prison, to be followed by a 20-year term of supervised release. Guerrero pleaded guilty in February 2014 to one count of receipt of child pornography and has been in custody since his arrest in November 2013 on a related charge. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
According to documents filed in the case, Guerrero used his computer to access various forms of pornography on the Internet, including numerous images and videos of child pornography. He admitted that in November 2013, while searching the Internet for child pornography, he knowingly downloaded a video of a female child engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) conducted the investigation. Assistant U.S. Attorney Amy Burch prosecuted.
Lower Brule Man and Woman Charged with Assaulting, Resisting and Impeding A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a man and a woman from Lower Brule, South Dakota, have been indicted by a federal grand jury for Assaulting, Resisting and Impeding a Federal Officer.
Sterling St. Cloud, age 32, and Toni Harmon, a/k/a Toni Bad Horse, age 39, were indicted on May 13, 2014. They appeared before U.S. Magistrate Judge Mark A. Moreno on May 22, 2014, and both pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about March 8, 2014, St. Cloud and Harmon forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with an officer while he was engaged in the performance of his official duties and employed as a federal law enforcement officer with the Bureau of Indian Affairs, Department of Interior.
The charge is merely an accusation and St. Cloud and Harmon are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
St. Cloud and Harmon were remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Little Eagle Man Sentenced for Embezzlement and Theft from an Indian Tribal OrganizationRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota, man convicted of Embezzlement and Theft from an Indian Tribal Organization was sentenced on May 19, 2014, by U.S. District Judge Charles B. Kornmann.
Dana Fast Horse, age 46, was sentenced to 1 year of unsupervised probation, a $500 fine, and a $100 special assessment to the Federal Crime Victims Fund.
Fast Horse was indicted by a federal grand jury on November 14, 2013. He pled guilty on January 10, 2014.
On October 1, 2013, the Bureau of Indian Affairs (BIA) was contacted by a member of the Standing Rock Sioux Tribe regarding a check she had received from Fast Horse. According to the tribal member, Fast Horse had presented her with a $4,000.00 check, which he wanted her to cash and split the proceeds with him. At the time, Fast Horse was Vice Chairman of the Running Antelope District on the Standing Rock Sioux Indian Reservation. He was aware that residents were receiving $4,000.00 per household as a result of the Salazar settlements. Fast Horse owned a vacant house, which he wanted the tribal member to claim she was residing in, so she would receive the benefits and split the proceeds with him.
Upon learning this information, two Standing Rock BIA Special Agents directed the tribal member to place a phone call to Fast Horse, which was recorded on a digital handheld recorder. During the call, the tribal member informed Fast Horse that she had cashed the check he had given her, and asked him if he wanted his half. A meeting was arranged in which Fast Horse was handed an envelope from the tribal member. The tribal member then walked away and the two BIA agents immediately arrested Fast Horse.
Fast Horse consented to an interview with the BIA agents in which he stated that, as Vice Chairman of the Running Antelope District, he knowingly lied to the council by informing them that the tribal member lived in one of his houses, which he knew to be vacant, in order for her to receive a $4,000.00 Salazar check. Fast Horse also informed the agents that he was to receive a portion of the money as payment for vouching to the council that the tribal member was actually residing in his vacant home.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Little Eagle Man Sentenced for Embezzlement and Theft from an Indian Tribal OrganizationRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota, man convicted of Embezzlement and Theft from an Indian Tribal Organization was sentenced on May 19, 2014, by U.S. District Judge Charles B. Kornmann.
Dana Fast Horse, age 46, was sentenced to 1 year of unsupervised probation, a $500 fine, and a $100 special assessment to the Federal Crime Victims Fund.
Fast Horse was indicted by a federal grand jury on November 14, 2013. He pled guilty on January 10, 2014.
On October 1, 2013, the Bureau of Indian Affairs (BIA) was contacted by a member of the Standing Rock Sioux Tribe regarding a check she had received from Fast Horse. According to the tribal member, Fast Horse had presented her with a $4,000.00 check, which he wanted her to cash and split the proceeds with him. At the time, Fast Horse was Vice Chairman of the Running Antelope District on the Standing Rock Sioux Indian Reservation. He was aware that residents were receiving $4,000.00 per household as a result of the Salazar settlements. Fast Horse owned a vacant house, which he wanted the tribal member to claim she was residing in, so she would receive the benefits and split the proceeds with him.
Upon learning this information, two Standing Rock BIA Special Agents directed the tribal member to place a phone call to Fast Horse, which was recorded on a digital handheld recorder. During the call, the tribal member informed Fast Horse that she had cashed the check he had given her, and asked him if he wanted his half. A meeting was arranged in which Fast Horse was handed an envelope from the tribal member. The tribal member then walked away and the two BIA agents immediately arrested Fast Horse.
Fast Horse consented to an interview with the BIA agents in which he stated that, as Vice Chairman of the Running Antelope District, he knowingly lied to the council by informing them that the tribal member lived in one of his houses, which he knew to be vacant, in order for her to receive a $4,000.00 Salazar check. Fast Horse also informed the agents that he was to receive a portion of the money as payment for vouching to the council that the tribal member was actually residing in his vacant home.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Lincoln County Man Pleads Guilty to Distribution of OxycodoneRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced today that Jason Edward Hallam, 33, of West Hamlin, West Virginia, entered a guilty plea today to the distribution of oxycodone.
Hallam admitted that on February 8, 2013, he sold 10 oxycodone 30 mg pills for $400.00 to an individual inside his West Hamlin home. Unbeknownst to Hallam, the individual who purchased the pills was a confidential information working with law enforcement.
Hallam faces up to 20 years’ imprisonment when he is sentenced on August 26, 2014, by United States District Judge John T. Copenhaver, Jr.
The case was investigated by the Huntington Drug Task Force and the West Virginia State Police. Assistant United States Attorney Monica D. Coleman is handling the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Leader of Violent Armed Robbery Crew Sentenced in Manhattan Federal Court to 60 Years in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that LOUIS MCINTOSH, 32, was sentenced today to 60 years in prison by United States District Judge Sidney H. Stein in Manhattan federal court for his role in an armed robbery conspiracy. MCINTOSH was convicted on August 22, 2013, after a nine-day trial before Judge Stein.
Manhattan U.S. Attorney Preet Bharara stated: “Louis McIntosh led a violent armed robbery crew that victimized New York area communities for years. Not satisfied to rob at gunpoint, McIntosh even pistol-whipped and tortured his victims. Today’s 60-year sentence provides a fitting end to McIntosh’s criminal career.”
According to the Indictment filed in Manhattan federal court, the evidence at trial, and sentencing:
On September 26, 2010, MCINTOSH and other co-conspirators robbed an individual business owner in his home in Lynbrook, New York, during which robbery MCINTOSH held the victim at gunpoint, tied him up, and assaulted him repeatedly with a stun gun. On October 28, 2010, MCINTOSH and other co-conspirators robbed a card game at a men’s club in Poughkeepsie, New York, during which MCINTOSH pistol-whipped two victims and discharged a firearm.
MCINTOSH, 32, of the Bronx, New York, was convicted of the following nine counts at trial: (1) participating in a conspiracy to commit robberies from in or about 2009 through 2012: (2) using, carrying, and possessing firearms in connection with the robbery conspiracy; (3) committing a robbery on September 26, 2010, in Lynbrook; (4) using, carrying, possessing, and brandishing firearms in connection with the September 26, 2010 robbery; (5) committing a robbery on October 28, 2010, in Poughkeepsie; (6) using, carrying, possessing, and discharging firearms in connection with the October 28, 2010 robbery; (7) possessing a Cugir .223 caliber auto-loading rifle after having been previously convicted of a felony; (8) possessing a Ruger 9 millimeter handgun after having been previously convicted of a felony; and (9) possessing a Bushmaster .223 caliber rifle after having been previously convicted of a felony.
In imposing sentence, Judge Stein remarked that MCINTOSH engaged in “serious” and “vicious” conduct during the course of the charged robberies and robbery conspiracy, including the “torture” of the victim of the Lynbrook robbery.
Mr. Bharara praised the outstanding investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and the Westchester County Department of Public Safety, and thanked the Westchester County District Attorney’s Office for its assistance in the investigation.
A number of co-conspirators were also prosecuted in connection with this case. Among other individuals, Turhan Jessamy previously pleaded guilty to using, carrying, possessing, and discharging firearms, and was sentenced by United States District Judge Kenneth M. Karas to 10 years in prison. Tyrell Rock previously pleaded guilty to using, carrying, possessing, and discharging firearms, and was sentenced by Judge Karas to 10 years in prison. Neil Morgan previously pleaded guilty to using, carrying, possessing, and discharging firearms, and was sentenced by Judge Karas to 10 years in prison. Quincy Williams previously pleaded guilty to using, carrying, possessing, and brandishing firearms, and was sentenced by Judge Karas to 7 years in prison.
The prosecution is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Sarah Krissoff and Jessica Masella are in charge of the prosecution.
Lake Charles Man Sentenced to 120 Months in Prison for Possessing Child PornographyRead the Press Release
LAKE CHARLES, La. –United States Attorney Stephanie A. Finley announced that Shannon Ray Smithers, 33, of Lake Charles, was sentenced on Thursday by U.S. District Judge Patricia Minaldi, to 120 months in prison and a lifetime of supervised release for possessing child pornography. He is also required to register as a sex offender.
According to evidence presented at the guilty plea on January 16, 2014, the defendant admitted to possessing child pornography. Homeland Security Investigations’ agents became aware of Smithers’ possession of child pornography through an undercover operation. Smithers admitted to agents that he had previously possessed child pornography on his computer as far back as February 26, 2013, but later erased it.
Homeland Security Investigations, the Louisiana State Police, and the Calcasieu Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney James T. McManus prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp.
Justice Department Files Lawsuit Alleging Disability-Based Discrimination by Mississippi DeveloperRead the Press Release
The Justice Department filed a lawsuit today against Mississippi-based developer Dawn Properties Inc. (Dawn) and its affiliated companies for violating the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA). The lawsuit alleges that the defendants violated these laws when they designed and constructed five or more residential properties with barriers that make them inaccessible to persons with disabilities.
“For over two decades, the Fair Housing Act and ADA have required those who design and build multifamily housing complexes to make them accessible to persons with disabilities,” said Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division. “When residential complexes are built with steps but without ramps or other means of access for wheelchair users, Americans with disabilities are denied the basic right to equal housing opportunities.”
“When a developer fails to comply with the Fair Housing Act and the Americans with Disabilities Act, it deprives those with disabilities of their fundamental right to live and raise families in the environment of their choosing,” said U.S. Attorney Gregory K. Davis for the Southern District of Mississippi.
The suit, filed in the U.S. District Court in Gulfport, Mississippi, alleges that The Lexington (Ridgeland, Mississippi), The Beach Club (Long Beach, Mississippi), The Belmont (Hattiesburg, Mississippi), Grand Biscayne (Biloxi, Mississippi) and Inn by the Sea (Pass Christian, Mississippi) have significant barriers, including steps leading to building entrances, non-existent or excessively sloped pedestrian routes from apartment units to site amenities (such as playgrounds, picnic areas and clubhouses or leasing offices), insufficient maneuvering space for wheelchairs in bathrooms and kitchens, excessively high light switches and environmental controls, and inaccessible parking.
The suit seeks a court order requiring the defendants to bring properties they have designed and constructed since 1991 into compliance with the FHA and the ADA, as well as monetary damages for persons harmed by the lack of accessibility and civil penalties to the United States. The suit also names Dawn’s affiliates Southern Cross Construction Company Inc., Ridgeland Construction One LLC, The Beach Club LLC, The Beach Club II LLC, The Belmont of Lamar LLC, Grand Biscayne Apts. LLC and Seainn LLC, as well as the current owners of the complexes who are necessary parties to the litigation. Anyone with information about the inaccessible conditions at these properties should call the Justice Department at 1-800-896-7743, and follow the prompts to enter mailbox 997.
The federal FHA prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status, and disability. Among other things, the FHA requires all multifamily housing constructed after March 13, 1991, to have basic accessibility features, including accessible routes without steps to all ground floor units, and units accessible to wheelchair users and others with disabilities. More information about the Civil Rights Division and the laws it enforces is available at the division website .
The complaint is an allegation of unlawful conduct. The allegations in the complaint must still be proven in federal court .
Hogsett Announces Sentencing in Federal Embezzelment CaseRead the Press Release
Indianapolis woman sentenced to 16 months in prison for her role in nearly half million dollar theft from Chase Bank
INDIANAPOLIS - Joseph H. Hogsett, the United States Attorney announced today the sentencing of an Indianapolis woman for her role in an embezzlement scheme that lasted nearly nine years. Tami Riggles, 46, Indianapolis, was sentenced by Federal District Court Judge William T. Lawrence to 16 months in federal prison.
“Each one of us has to be accountable for our actions both in our private and professional lives,” said Hogsett. “If you steal from financial institutions, you steal from all Hoosiers and this office will hold you responsible.”
Riggles was employed as a Senior Floor Plan Operations Specialist, and responsible for transactions involving 700 automobile dealerships who used “floor plans,” a common borrowing system used by dealers to finance their vehicles. While Chase Bank employed safeguards for reconciliation to make sure dollar amounts borrowed and repaid were accounted for each day, Riggles was able to escape detection when she used a Chase Bank general internal account to steal from and to accomplish depositing money into her own personal checking account. None of the dealerships’ money was stolen.
Riggles’ theft of $458,391.00 took place between 2005 and 2013 when her scheme was detected. Riggles was stealing between $8,000 and $16,000 monthly to elevate her lifestyle which included expenditures to numerous retail outlets, restaurants, credit cards, and an online dating site. In addition to agreeing to pay restitution to her former employer, Riggles also agreed to pay $6,450 to the Franklin Youth Basketball League.
“Embezzlement is a crime that causes harm to businesses and diverts funds from their intended use. The FBI will continue to pursue those who unlawfully enrich themselves at the expense of others,” said Special Agent in Charge Robert Jones.
According to Assistant U.S. Attorney Gayle Helart who prosecuted the case for the government, Riggles will serve two years of supervised release after serving her sentence.
Hartford Man Sentenced to 6½ Years for Possession of Child PornographyRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Stephen Scott Pennington, 41, of Hartford, Maine, was sentenced today in U.S. District Court by Judge George Singal to 6½ years in prison and five years of supervised release for possession of child pornography. Pennington pled guilty on November 25, 2013.
According to court records, the defendant used peer-to-peer software to access and make available for sharing images and videos of child pornography. Federal agents discovered some of the child pornography online, traced it to Pennington’s computer, seized and examined the computer, and found over 100 images and over 400 videos of child pornography.
In imposing sentence, Judge Singal observed that child pornography crimes are one of the worst types because they victimize defenseless children, the images are sickening, and the defendant did not view it as a problem and made his collection available for sharing on the
Internet. The judge expressed his concern that the defendant still did not get it.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland
Security Investigations.Haitian Man Pleads Guilty to Alien Smuggling Conspiracy That Killed 8Read the Press Release
St. Thomas, USVI – Lamorthe Delva, a Haitian national, pleaded guilty today in federal district court to conspiracy to smuggle illegal aliens into the United States, United States Attorney Ronald W. Sharpe announced.
On April 10, 2014, Delva, 46, was charged in a 10-count indictment, along with Dieuseul Mompremier and Roro Edourre. In addition to conspiracy to smuggle aliens, Mompremier, Delva and Edourre are charged with unlawfully attempting to bring aliens into the United States. Mompremier also is charged with transportation of an alien within the United States on or about December 28, 2011. Edourre was prosecuted for manslaughter in the British Virgin Islands, where he is currently serving his sentence.
According to the indictment, in December 2010, Mompremier, Delva and Roro Edourre, 46, conspired with each other and additional co-conspirators to smuggle illegal aliens into St. John, U.S. Virgin Islands. On December 5, 2010, Edourre was the captain on the vessel “Jesus La,” with approximately 33 passengers, most of them Haitian nationals, including men, women and children, when the vessel traveled from St. Maarten, Netherlands Antilles, to the U.S. Virgin Islands. While Edourre was transporting the illegal aliens on the vessel, Mompremier and Delva waited in the U.S. Virgin Islands and communicated with their co-conspirators by telephone. The U.S. Coast Guard spotted the vessel carrying Edourre and his passengers, and Edourre attempted to evade the Coast Guard. While attempting to evade the Coast Guard, the “Jesus La” ran aground and sank, resulting in the death of at least eight individuals, including four children.
Delva faces a maximum penalty of life in prison and a $250,000 fine.
Sentencing has been scheduled for September 25, 2014, before District Judge Curtis V. Gomez.
United States Attorney Sharpe commended the work of U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and Assistant U.S. Attorney Kim L.Chisholm, who is prosecuting this case.
Former Oklahoma State University Professor Convicted on 26 Fraud and Public Corruption Charges Involving Blackfeet PoKa ProgramRead the Press Release
The United States Attorney's Office announced that on May 22, 2014, a federal jury found GARY JOSEPH CONTI, 68, of Three Forks, guilty on 26 of 27 felony charges relating to his role in deceiving the government in an "in-kind" scheme that auditors have determined resulted in at least $4.6 million in fraud against a grant designed to help troubled and at-risk youth on the Blackfeet Indian Reservation.
The Blackfeet Po'ka Project was the result of a 2005 grant application from the Blackfeet Tribe and designed to provide a comprehensive support structure to assist troubled and at-risk youth. Po'ka was funded by a federal grant from 2005 through 2011. Po'ka received its funding from the Substance Abuse and Mental Health Services Administration (SAMHSA) of the Department of Health and Human Services through a grant relationship between SAMHSA and the Blackfeet Tribe. The Tribe in turn operated the Po'Ka Project as a tribal enterprise. Managers and staff were tribal employees subject to tribal employment rules and regulations, with oversight from the Blackfeet Tribal Business Council. Beginning in 2005 with a $1,000,000 federal disbursement, the grant ultimately became a $9.3 million program over a six year period (2005-2011). The funding arc started with the $1,000,000 award, rose to $2,000,000 per year for two years (2007, 2008) and then tapered off to $1,000,000 in 2010 and $300,000 in 2011.
According to the SAMHSA grant synopsis, the Po'Ka Project - also known as Blackfeet Children System of Care - was a reservation-wide children's mental health system. "Po'Ka goals are: (1) to implement the systems of care philosophy at the local Tribal level; and (2) to identify, plan for, or enhance coordination and facilitate a wraparound process enabling children with SED (Severe Emotional Disorders) and their families to access services to meet their needs."
Francis Onstad served as the Director of Po'Ka and Delyle Shanny Augare as the Assistant Director. Dr. Gary Conti, then a full professor at Oklahoma State University in Stillwater, Oklahoma, served as the national evaluator for the grant and Dr. Dorothy Still Smoking--who had received her doctorate from Montana State University when Conti was a professor in Bozeman during the 1990s-served as the local evaluator. Still Smoking, who was a full time employee with the Blackfeet Housing Authority, provided her services as an independent contractor for Conti and his business, Learning Associates, and was paid for her services through Conti. Conti's services were also billed and paid for through Learning Associates' contract with the Po'Ka Project.
Liz Sherman served as the In-Kind Coordinator for Po'Ka and Charlotte New Breast was the administrative assistant for Po'Ka.
Onstad, Augare, Still Smoking, Sherman, and New Breast were named in the 37-count indictment handed down by the Grand Jury in July 2013, but all reached plea agreements with the United States and plead guilty to charges in the indictment. There sentencing is scheduled for June 2014.
The In-Kind Contribution Requirement And The False Claims Conspiracy
The SAMSHA grant required that the Blackfeet Tribe make the Po'Ka Program self-sufficient; a completely tribal program - entirely supported by the Tribe - by the end of the grant period. The grant required that the Tribe provide a certain amount of funding. "A requirement contained in certain legislation, regulations, or administrative policies that a recipient must maintain a specified level of financial effort in the health area for which Federal funds will be provided in order to receive Federal grant funds." (Emphasis added) Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (SED), CMHS Child Mental Health Service Initiative Number: 93.104. To achieve the goal of final self-sufficiency, the Tribe was required to provide matching contributions-either cash or in-kind-to continue to secure federal payments with the idea that as federal participation declined, tribal participation would rise to fill the funding void left by the absence of federal funds. It was the intent of the parties and SAMHSA that the Po'Ka Project would survive on its own once federal funding was no longer forthcoming.
An in-kind contribution is a non-cash contribution provided by non-federal third parties in support of the project funded by the grant, and its objectives. Third party in-kind contributions may be in the form of real property, equipment, supplies and other expendable property, and the value of goods and services directly benefitting and specifically identifiable to the project or program.
A key component of the grant award was the funding arc; the ratio of federal money to in-kind contributions. Only if Po'Ka met the in-kind contribution targets could they receive the maximum amount of federal money from the grant. Consistent with the sustainability objective of the grant, the Tribe's in-kind contribution requirement was the highest in the later years of the grant. The Blackfeet Tribe was required to provide $7.0 million of in-kind contributions from FYs 2009 through 2011. That created an environment where the appearance of substantial in-kind contributions became paramount if the maximum flow of federal money from the grant was going to continue.
Evidence produced at trial revealed that the in-kind commitment could never be honestly met, so the conspirators began making up facts and documents to try and satisfy SAMHSA and the auditors that the in-kind contributions represented on their reports to SAMHSA were legitimate. They did so by inflating the figures related to in-kind contributions, assigning values to non-existent and illegitimate "contributions," and manufacturing fraudulent invoices and records to support fictional or inflated contributions. The misrepresentations as to in-kind amounts were made in monthly reports to SAMHSA and the documents were generated to placate auditors conducting a required annual audit of the Tribe's operations. These annual audits are required of tribes accepting federal grant funds to insure that the grant funds are being used for their intended purpose and that the requirements of the contract agreement are being met. If auditors make negative findings, those findings can result in action by the federal agency to rescind the contract, demand repayment, or make an offset, where the government deducts money from future payments.
Several witnesses, whose names were used as in-kind contributors, denied preparing or signing the invoice and denied contributing time or goods to the Po'Ka Project.
Based on email evidence and the statements of cooperating witnesses, Onstad, along with Conti, Sherman, and others, conspired to make the false representations as to the in-kind contributions made to the Po'Ka Project, and then actively managed the creation of false documentation to cover the representations so that the auditors would not question the contributions and the federal money would continue flowing unabated. The false representations were, in effect, false claims that resulted in the expenditure of federal grant money that would not have been expended had the principals honestly represented the woefully inadequate level of non-federal support.
Emails entered into evidence by the prosecution indicated that Conti was often consulted for advice as to how to appease auditors hired by the Tribe to perform a mandatory audit.
Auditors with the Office of Inspector General (OIG), U.S. Department of Health and Human Services, have determined that at least $4.6 million in claims for grant payments paid to the Tribe on the basis of Po'Ka' s in-kind contribution are unsupported, inflated, or completely falsified.
The Embezzlement Scheme With Conti
At trial, witnesses described how Onstad and Augare had embezzled from the program in a myriad of ways - travel fraud, misuse of Po'Ka credit cards, exorbitant claims of overtime, theft of program property, etc. - but the most significant embezzlement came in the agreement Onstad and Augare appeared to have reached with Conti wherein they would approve payments to Conti with the understanding that he would kick back a sizable portion-roughly one-half of the payment amount-to a bank account they controlled in the name of a children's charity, the Child Family Advocacy Center CFAC).
A forensic accountant with the FBI told the jury that between August 2008 and August 2011, Onstad and Augare approved over $475,000 in Po'Ka grant monies for Conti's business, Learning Associates. In turn, between August 2008 and September 2011, Conti transferred $231,550 to CFAC bank accounts at Wells Fargo Bank in Cut Bank.
Conti had declared bankruptcy in Oklahoma on April 29, 2009. Four days later Conti opened a Browning bank account for Learning Associates and began having his payments from the Blackfeet Tribe deposited into that account. Between May 2009 and August of 2011, each time a Po'Ka check would be deposited into the Browning account, Conti wrote checks from approximately half the amount to CFAC. The FBI witness testified that the amount from Conti was split roughly equally by Onstad and Augare through withdrawals from the CFAC accounts and deposits into their personal accounts and that the disposition of the money from their appeared mostly casinos and travel to Nevada.
Conti was convicted of conspiracy to defraud the United States, conspiracy to submit false claims against the United States, aiding theft from an Indian tribal government receiving federal funding, money laundering, theft of federal money, and twenty-one counts of wire fraud. Another jury found Conti guilty of bankruptcy fraud in March.
U.S. Attorney Mike Cotter lauded the jury's verdicts. "Grants like Po'Ka reflect the generous spirit of this country to help the least fortunate among us. For their objectives to be accomplished they must be protected and their integrity preserved. When a group of predatory opportunists see these grants as a golden goose ready to be exploited for personal gain, this office will respond with clear and decisive prosecution as a message to all that corruption in in any community in Montana will not be tolerated and that those who pillage public funds had best factor dire consequences into their decision to commit fraud."
Former Illinois State Rep. Keith Farnham Indicted for Allegedly Possessing, Receiving, and Transporting Child PornographyRead the Press Release
CHICAGO ― A federal grand jury returned a four-count indictment charging former Illinois State Rep. KEITH FARNHAM with possessing, receiving, and transporting child pornography, federal law enforcement officials announced today. Farnham was initially charged with one count of possession of child pornography in a criminal complaint filed last month in U.S. District Court.
Farnham, 66, of Elgin, was indicted yesterday on one count of possessing child pornography involving a minor under age 12, one count of receiving child pornography, and two counts of transporting child pornography, all via computer. Farnham, who was previously released on his own recognizance with conditions, including home incarceration and electronic monitoring, will be arraigned on a date yet to be determined in Federal Court.
The indictment also seeks forfeiture of a computer hard drive that was seized at Farnham’s residence on March 13, when agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed federal search warrants at Farnham’s state office and residence in Elgin.
Farnham resigned his seat in the Illinois General Assembly on March 19.
According to the complaint affidavit, HSI agents were investigating information received from the HSI Cyber Crimes Center that an email address, later linked to Farnham, was being used to trade child pornography on the Internet.
Possession of child pornography of a minor under age 12 carries a maximum sentence of 20 years in prison, while each count of receiving and transporting child pornography carries a mandatory minimum sentence of five years and a maximum of 20 years, and a maximum fine of $250,000 on each count. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Gary Hartwig, Special Agent-in-Charge of HSI in Chicago.
The government is being represented by Assistant U.S. Attorney Michelle Petersen.
An indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Former Federal Agent Sentenced to Prison for Making False StatementsRead the Press Release
SAN FRANCISCO – James Contreras was sentenced today to 12 months in prison, and ordered to pay a $10,000 fine for making false statements to the government, announced United States Attorney Melinda Haag and United States Department of Justice Inspector General Michael E. Horowitz.
Contreras pleaded guilty on Feb. 26, 2014 in the United States District Court for the Western District of Washington in Seattle to one count of making material false statements to the government. According to the plea agreement, Contreras stated that while he was employed with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) and assigned the position of Group Supervisor, he was responsible for disbursing and accounting for money in a cash fund used for investigative expenses, including making payments to confidential informants. In pleading guilty to one of the thirty false statement counts in the indictment, Contreras admitted that he wrote what purported to be the signature of an agent under his supervision on forms requesting and documenting use of money from the cash fund. Contreras also admitted that he signed a payment receipt falsely showing that the agent used the money to make a payment to an informant, although Contreras knew that the agent did not make the payment. Contreras admitted that he then submitted the forms for supervisory approval knowing that they contained falsified signatures and information.
Contreras, 52, of Ravensdale, Wash., was indicted by a federal grand jury in Seattle on Nov. 21, 2013. He was charged with thirty counts of making material false statements on sets of documents purporting to document expenditures from the cash fund over which he had custody and control, and with one count of embezzlement of public money in excess of $1,000.
As part of the plea agreement, Contreras agreed that the total funds disbursed from the cash fund in connection with the charges in the Indictment was $19,700.
Seattle Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Douglas R. Dawson, stated, “Jim Contreras’s actions should not reflect poorly on the men and women of the ATF who perform their jobs with honesty and integrity every day. Their tireless efforts to protect our communities, regularly in the face of great danger, is what we all should recognize and appreciate.”
The sentence was handed down by the Honorable Marsha J. Pechman, Senior United States District Court Judge, Western District of Seattle, following Contreras’s guilty plea to Count Nineteen of the indictment, charging making a material false statement to the government, in violation of Title 18, United States Code, Section 1001(a)(3). Judge Pechman also sentenced the defendant to a three-year period of supervised release. The defendant will be permitted to self-surrender for service of sentence. He will be notified of the date by the court.
Susan Badger of the U.S. Attorney’s Office for the Northern District of California is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rosario Calderon. The prosecution is the result of an investigation by the United States Department of Justice Office of Inspector General, Investigations Division and the ATF Office of Professional Responsibility and Security Operations.
(Contreras indictment )
Former Executives of U.S. Corporation Extradited from Britain to Face Federal Fraud Charges in MarylandRead the Press Release
Allegedly Obtained Over $1.4 Million through Fraudulent Reimbursements
Greenbelt, Maryland – Paul Dunham and his wife, Sandra Dunham, both age 58, of Northampton, England, formerly of Montgomery County, Maryland, had an initial appearance today before U.S. Magistrate Judge William Connelly, in U.S. District Court in Greenbelt, Maryland. Yesterday, Deputy U.S. Marshals escorted the couple from England after they were extradited to face a federal indictment on conspiracy, wire fraud and money laundering charges in connection with their employment at PACE, Inc. A federal grand jury returned the indictment on December 7, 2011, and it was unsealed today. Magistrate Judge Connelly ordered that the Dunhams be detained pending a detention hearing scheduled for Tuesday, May 27, 2014, at 11:00 a.m. before U.S. Magistrate Judge Jillyn K. Schulze, in courtroom 3A, U.S. District Court in Greenbelt.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the indictment, PACE, Inc. was a Maryland corporation that produced parts for the repair and reworking of electronics for the military and others. PACE USA had a subsidiary in the United Kingdom called PACE Europe, Ltd. Paul Dunham was President and Chief Operating Officer of PACE USA and Managing Director of PACE Europe. Sandra Dunham was the Director of Sales and Marketing for PACE USA and PACE Europe. The Dunhams were provided with corporate credit cards, and also maintained personal credit cards.
The 13-count indictment alleges that between 2002 and 2009, Paul Dunham and Sandra Dunham fraudulently charged personal expenses to their corporate credit cards and submitted vouchers to PACE for reimbursement that falsely described them as business expenses. The indictment alleges that the couple also fraudulently billed PACE Europe for business expenses already paid by PACE, Inc., obtaining duplicate reimbursements. The personal expenses for which Mr. and Mrs. Dunham obtained reimbursements included furniture, a dog sofa and pet residence, weekly grocery expenses, art work, home cleaning and remodeling services, and airline tickets.
In order to conceal the scheme, the couple allegedly submitted fraudulent expense vouchers. Paul Dunham is alleged to have created, doctored, and falsified receipts and invoices to create the false appearance that they were for business, rather than personal expenses. In addition, Paul Dunham is alleged to have instructed his assistant not to reveal records related to personal purchases made by himself and Sandra Dunham.
Finally, the indictment seeks the forfeiture of $1.4 million, alleged to be the proceeds of the scheme.An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney David I. Salem and Special Assistant U.S. Attorney Paul K. Nitze, who are prosecuting the case, and the Office of International Affairs and the U.S. Marshals Service for their assistance in this case.
Former Employee of U.S. Contractor Pleads Guilty to Fraud SchemeRead the Press Release
A former employee of a U.S. contractor pleaded guilty today to conspiracy to defraud the United States in connection with a contract to provide reconstruction-related services in Afghanistan.
Acting Assistant Attorney General David O’Neil of the Justice Department’s Criminal Division and United States Attorney for the Middle District of Florida A. Lee Bentley made the announcement.
Alan D. Simmons pleaded guilty today before U.S. Magistrate Judge Patricia D. Barksdale in the Middle District of Florida.
According to court documents, Simmons worked in Afghanistan as a training program coordinator for PAE Inc. PAE had a contract with the United States Department of State to train and supply uniforms to Afghan correctional officers. Simmons was responsible for providing information to others at PAE as to the number and types of uniforms that were to be ordered and provided to the Afghan correctional officers upon their completion of the training program.
As alleged in court documents, Simmons and others created a company, Aminzian Logistics Services (Aminzian), ostensibly to provide uniforms to PAE as a subcontractor. In fact, Aminzian would submit false and fraudulent invoices to PAE seeking payment for goods that were not in fact provided. After Aminzian was paid, Simmons and his co-conspirators split the proceeds. The United States reimbursed PAE for its payments to Aminzian and incurred a loss of over $120,000.
The case was investigated by the Department of State Office of Inspector General and the Special Inspector General for Afghanistan Reconstruction (SIGAR). This case was prosecuted by Special Trial Attorney Mark H. Dubester, on detail from SIGAR, and Assistant U.S. Attorney Kevin C. Frein of the Middle District of Florida.Former Broward County Tax Preparer Sentenced for Contempt of CourtRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Dianelys Armengol Guevara, 28, of Pembroke Pines and Dallas, Texas, was sentenced by U.S. District Judge James I. Cohn to 30 months in prison followed by 12 months of supervised release. Dianelys Armengol Guevara previously pled guilty to a one-count information charging her with contempt of court for violating a court order forbidding her from acting as a tax preparer.
According to the factual proffer filed in court, Guevara worked as a professional tax preparer at Liberty Tax Services, in Hollywood, from 2005-2009. In 2010, the Department of Justice Tax Division filed a civil complaint against Guevara, based on a civil IRS investigation, alleging that Guevara filed tax returns improperly claiming First Time Homebuyer Credits, various education credits, deductions, and expenses. In January 2011, U.S. District Judge Cecilia M. Altonaga entered a judgment which permanently barred Guevara from acting as a federal tax return preparer. However, on or about January 13, 2011, Guevara began willfully disobeying that judgment by continuing to prepare, and assist in preparing, federal tax returns, from her home in Pembroke Pines. Guevara admitted to preparing approximately 130 federal tax returns after the Court entered its bar order. Audits by the IRS found that many of the returns prepared by Guevara also made illegitimate claims to education credits and other deductions, resulting in an average under-payment of approximately $3,358 per return.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Jared M. Strauss.
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.
Five Charged with Drug Trafficking Out of Rio Grande ValleyRead the Press Release
LAREDO, Texas – Two indictments have been unsealed following the arrest of one McAllen and four Zapata residents alleging marijuana and/or cocaine trafficking, announced United States Attorney Kenneth Magidson.
Both indictments were returned under seal May 13, 2014, and unsealed upon today’s arrests of Roberto Piedra, 33, Isidro Ramirez, 34, Ramiro Guerrero, 35, and Omar Gonzalez, 50, all of Zapata, and Martin Gonzales Garces Jr., 55, of McAllen. All five are expected to make an initial appearance before U.S. Magistrate Judge J. Scott Hacker Tuesday morning.
The first indictment alleges Piedra, Ramirez, Guerrero and Gonzalez conspired to possess with the intent to deliver 1,000 kilograms or more of marijuana between February 2013 and Nov. 25, 2013, from South Texas to northern destinations.
Specifically, transporters would allegedly drive the marijuana from the Rio Grande Valley to Laredo through ranches west of Laredo in order to avoid traveling through U.S. Border Patrol Immigration checkpoints. The indictment alleges the marijuana was concealed in belly dump trucks below loads of caliche as well as in utility trucks in order for these vehicles to blend in with oil field traffic on ranches. Members of the organization allegedly scouted for these loaded vehicles.
The first indictment further alleges that Piedra, Ramirez, Guerrero and Gonzalez possessed with the intent to distribute more than 1,000 kilograms of marijuana on Nov. 24-25, 2013, and that Piedra possessed with the intent to distribute five kilograms or more of cocaine on Nov. 22, 2013.
The second indictment alleges that Garces conspired and possessed with the intent to deliver five kilograms or more of cocaine on Feb. 7, 2014.
If convicted, all face a mandatory minimum sentence of 10 years and up to life in prison and a possible $10 million fine.
The case is being investigated by the Homeland Security Investigations with the assistance of U.S. Border Patrol and the Zapata County Sheriff’s Office. Assistant United States Attorneys Elizabeth R. Rabe and Raul Guerra are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.First MS-13 Member Extradited from El Salvador to United States Sentenced to 35 Years for Role in Attempted Murder of Two IndividualsRead the Press Release
One of the Seriously Wounded Victims Was Pregnant
ALEXANDRIA, Va. – Edgar Benitez Hernandez, also known as “Shadow,” 26, of the District of San Miguel, El Salvador, was sentenced today to 35 years in prison on two counts of using and discharging a firearm during or in relation to an attempted murder in aid of racketeering. Benitez Hernandez was extradited from El Salvador to the United States on Dec. 18, 2013, and had been indicted previously by an Eastern District of Virginia grand jury on June 13, 2010, on multiple racketeering charges, including attempted murder.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Michael L. Chapman, Loudoun County Sheriff; and Maggie DeBoard, Town of Herndon Chief of Police, made the announcement after the sentencing before U.S. District Judge Claude M. Hilton.
Benitez Hernandez pleaded guilty on Feb. 12, 2014. According to court documents, Benitez Hernandez, a soldier in the notoriously violent transnational street gang Mara Salvatrucha 13 (“MS-13”), attempted to murder two individuals on Sept. 13, 2008, in Loudoun County, Va. On that date, Benitez Hernandez concealed himself behind some shrubs and when the male and pregnant female victims were within range, he fired multiple shots while yelling “Mara Salvatrucha Cabrones.” Both of the victims were critically injured and likely would have died were it not for immediate surgical intervention. The unborn baby also survived the wounding. Benitez Hernandez committed the double shooting to increase his position within MS-13’s criminal enterprise.
On May 22, 2013, Benitez Hernandez was apprehended in El Salvador by an elite Salvadoran investigative unit known as the Transnational Anti-Gang (TAG) Task Force. This extradition marks the first time in recent history that a Salvadoran citizen has been extradited to the United States to be held accountable for gang-related crimes committed in the United States.
This case was investigated by the Federal Bureau of Investigation, Loudoun County Sheriff’s Office and the Northern Virginia Gang Task Force, with assistance from the Town of Herndon Police Department. The U.S. law enforcement partners involved in the investigation and prosecution of Benitez Hernandez would like to thank the Salvadoran National Police for their outstanding assistance in bringing this fugitive to justice. U.S. Attorney Dana J. Boente also thanked the FBI’s Legal Attaché Office in El Salvador, the Government of El Salvador and the U.S. Department of Justice’s Office of International Affairs, each of which were critical in securing the custody and extradition of Benitez Hernandez. Assistant U.S. Attorneys Zach Terwilliger and Patricia Haynes prosecuted the case on behalf of the United States.
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 at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Final Defendant Is Sentenced to 51 Months in Prison for Wire Fraud and Money Laundering as Part of A $5 Million Ponzi SchemeRead the Press Release
DENVER – Stanley W. Anderson, age 70, of Arvada, Colorado was sentenced by U.S. District Court Judge Christine M. Arguello to serve 51 months in federal prison for wire fraud and money laundering, federal law enforcement authorities announced. Following his prison sentence, Anderson, was ordered to spend 3 years on supervised release. Judge Arguello also ordered him to pay $5,226,300 in restitution.
Anderson was indicted by a federal grand jury in Denver on March 22, 2012, along with co-defendants Pastor Charles Lawrence Kennedy, Jr. of Tampa, Florida and Edwin Alexander Smith of Denver, Colorado. Kennedy and Smith pled guilty and were sentenced to federal prison for twelve and thirty months, respectively.According to the facts contained in the indictment as well as the stipulated facts contained in the various plea agreements, beginning in October of 2005 and continuing through December 2008, Anderson, Smith and Kennedy together with each other, and aiding and abetting other persons known and unknown to the Grand Jury, devised a scheme to defraud investors.
Anderson and Smith resided in Colorado and conducted business through “CFO-5, LLC” and “Trinity International Enterprises, Inc”, two companies they controlled. Trinity had no business operations apart from soliciting investment funds related to an investment program. Anderson was the chairman and chief executive officer of CFO-5 and Trinity. Smith was the secretary of CFO-5 and president of Trinity. Kennedy resided in Florida where he worked as a pastor and conducted business through a company identified as “Keys to Life Corporation". Kennedy through a formal partnership with Trinity assisted Anderson and Smith in soliciting investment funds.
They solicited investors' funds for use in an investment program where significant profits would supposedly be generated through the trading of European medium term notes ("MTN program"), when in fact, the MTN program did not exist. Furthermore, they represented that their MTN program would pay nearly immediate returns in amounts ranging from 200 to 1000 percent.
They raised approximately $5 million dollars from approximately 100 investors nationwide over the course of the scheme. The investors' funds were not used to trade in financial instruments, but were instead misappropriated by Anderson, Smith and Kennedy for unauthorized uses. Investors, with the exception of those who received Ponzi scheme-like payments, that is, money taken from one investor to compensate another, lost their total investments. Anderson and Smith generally commingled and deposited investors' funds into bank accounts controlled by Anderson and Smith.
Anderson was the lead person for the investment program and managed the daily operations of the program, made key decisions as it related to the use of investor funds, handled investor communications, and oversaw the relationship with various promoters responsible for soliciting investors. During periodic conference calls with investors, Anderson conducted such calls and provided investors with purported updates. Similarly, Anderson would typically author and distribute e-mail communications to investors in which false information regarding the status of the investment was contained. As it related to the handling of funds collected by investors, Anderson typically controlled and determined the expenditure of such funds. He diverted thousands of dollars in investor funds for personal use including, house payments, meals and entertainment, personal judgments and salary payments for his children.This case was investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the United States Postal Inspection Service.
This case is being prosecuted by Assistant U.S. Attorney Timothy Neff.
Felon in Possession of Firearm Sentenced to 21 Months in PrisonRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez on Thursday sentenced Fenyang Ouma Francis, 24, to 21 months in prison for a felon in possession of a firearm conviction, United States Attorney Ronald W. Sharpe announced.
On January 15, 2014, Francis pleaded guilty to one count of felon in possession of a firearm after he was arrested and charged with federal and territorial firearm offenses. According to documents filed in court, Francis was arrested on November 2, 2013, after a traffic stop in which a firearm was found in his car. Francis had been previously convicted in connection with the shipment of a firearm into the Virgin Islands from Florida in 2009. Francis was on supervised release for the shipment of a firearm conviction when he was arrested on November 2, 2013. He faces a revocation hearing for violation of his supervised release. The revocation hearing is scheduled for June 12, 2014.
This case was investigated by the Virgin Islands Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Nelson L. Jones prosecuted the case.
Fairbanks Man Indicted for Making False Statements in Connection with February, 1978 Bombing of Trans Alaska PipelineRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Fairbanks man has been indicted by a federal grand jury for three counts of making false statements to the Federal Bureau of Investigation in connection with a recent renewed investigation of a bombing attack on the Trans Alaska Pipeline which took place in mid-February of 1978. The indictment alleges that PHILLIP MARTIN OLSON, age 61 of Fairbanks, made admissions to the FBI last fall and earlier this year concerning his own involvement in the 1978 pipeline attack, but falsely implicated another individual in carrying out the bombing with him.
On February 15, 1978, a pilot flying over the pipeline north of Fairbanks, Alaska spotted what appeared to be a large plume of crude oil jetting from the pipeline at approximately mile 454.5. An investigation established that an explosive device had been placed on the pipeline and successfully detonated, resulting in a large breach. Approximately 12,000 to 14,000 barrels of crude oil was ejected from the pipeline and onto the surrounding terrain before the spill was stopped. After an investigation by the state and federal law enforcement agencies, no one was charged with carrying out the 1978 bombing attack.
The indictment alleges that more than 35 years later – in November of 2013 – the Federal Bureau of Investigation was notified that OLSON had been making recent statements admitting that he had carried out the 1978 pipeline bombing. A renewed joint investigation by the FBI and the Alaska State Troopers commenced, which included multiple interviews of OLSON, and others. The indictment alleges that when interviewed on three occasions, OLSON admitted that he had carried out the 1978 attack, but falsely implicated another individual in carrying out the bombing with him.
OLSON was arrested in Fairbanks by the FBI and the Alaska State Troopers this morning, and was arraigned at 3:00 p.m. this afternoon before U.S. Magistrate Judge Scott A. Oravec. OLSON was ordered temporarily detained pending a detention hearing to be held before Judge Oravec next week.
Assistant United States Attorney Joseph Bottini, who presented the case to the grand jury, indicated that the law provides for a sentence of up to five years, as well as a fine of $250,000 and up to 5 years of supervised release following service of a prison sentence for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation and the Alaska State Troopers conducted the investigation leading to the indictment in this case. Alyeska Pipeline Services Company provided significant cooperation to the investigating agencies.
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.
Ellsworth Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that an Ellsworth Air Force Base man has been indicted by a federal grand jury for Receipt of Child Pornography and Possession of Child Pornography.
Colby Haggerty, age 22, was indicted on May 20, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on May 21, 2014, and pled not guilty to the Indictment.
The penalty upon conviction is a mandatory minimum of 5 years’ imprisonment up to 20 years’ imprisonment and/or a $250,000 fine, lifetime of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that between August 2009 and April 2014, at Ellsworth Air Force Base, Haggerty knowingly received and possessed computers files containing images of child pornography.
The charges are merely accusations and Haggerty is presumed innocent until and unless proven guilty.The investigation was conducted by the South Dakota Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Haggerty was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Eagle Pass Texas Mexican Mafia Members Arrested for Violating Federal Racketeering Influenced Corrupt Organization (RICO) and Violent Crime in Aid of Racketeering (VICAR) StatutesRead the Press Release
Fourteen Texas Mexican Mafia (TMM) members, including leader Jesus Lopez (aka “Worst Ever”), are in custody today charged with violating the Racketeering Influenced Corrupt Organization (RICO) Act to include alleged acts of murder, extortion and drug trafficking in the Eagle Pass area. Five members also face charges under the Violent Crime in Aid of Racketeering (VICAR) statute. A list of the indicted defendants is below.
That announcement was made earlier today by United States Attorney Robert Pitman; Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety Director Steve McCraw; Drug Enforcement Administration Special Agent in Charge Joseph A. Arabit, Houston Division; Homeland Security Investigations Special Agent in Charge Janice Ayala; and, Chief Patrol Agent Rodolfo Karisch, U.S. Border Patrol, Del Rio Sector.
A five-count federal grand jury indictment, returned on Wednesday and unsealed today, charges all 14 defendants with one count of conspiracy violate the RICO Act. Jesus Lopez, Anselmo Flores, Francisco Hernandez, Hector Martinez and Esteban Munoz are also charged with two counts of Violent Crime in Aid of Racketeering. Raul Herrera and Reynaldo Vivian are each charged with one count of conspiracy to possess with intent to distribute a controlled substance.
The indictment alleges that Flores, under the direction of Lopez and others, stabbed and murdered Eagle Pass resident Angel Cantu on January 22, 2011, while other TMM members stood guard with weapons. Furthermore, TMM members provided Flores with money to leave town after the murder to deflect law enforcement attention from the criminal enterprise. At the time of Cantu’s murder, the indictment alleges that Hernandez, aided and abetted by Lopez, Flores, Martinez and Munoz, assaulted another individual with a dangerous weapon.
The indictment further alleges that all 14 defendants conspired in the distribution of narcotics as well as the extortion of cocaine distributors in Eagle Pass since 2009. According to the indictment, proceeds from the distribution and extortion were transferred to the San Antonio branch of the TMM.
The indictment also alleges that around early December 2010, Lopez ordered Martinez, Hernandez, Flores and others to retrieve and destroy firearms, which they did, that were used during the attempted murder of an individual who provided information about the TMM to law enforcement.
Hernandez, Lopez, Flores, Martinez and Munoz face a mandatory life in prison sentence upon conviction of violent crime in aid of racketeering. Those five defendants, along with Herrera, face up to life in federal prison upon conviction of the RICO Conspiracy charge. The other eight defendants face up to 20 years in federal prison upon conviction of the RICO Conspiracy charge. Herrera faces between 5 and 40 years in federal on the drug conspiracy charge; Vivian, up to 20 years in federal prison on the drug conspiracy charge.
Beginning last night and continuing this morning, federal, state and local authorities arrested Michael Eric Cantu, Esteban Munoz, and Reynaldo Vivian in Eagle Pass; Claudio Salinas in Del Rio; and, Anselmo Flores near Bismarck, ND. The remaining defendants were already in custody prior to today.
This case resulted from a joint investigation by the FBI, Texas Rangers, Department of Public Safety Criminal Investigation Division, DEA, HSI and Border Patrol.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Name Age Residence
**JESUS LOPEZ, aka “Jessie,” aka “Worst Ever” 35 Eagle Pass
**GERARDO CASTILLO, aka “Jerry,” aka “Chingo Bling” 32 Eagle Pass
**SALOMON MARTINEZ, aka “Salo” 39 Eagle Pass
**IVAN VELASQUEZ, aka “Pipi” 35* Eagle Pass
**JOSE ALEJANDRO MALDONADO, aka “Chivia” 34 Eagle Pass
CLAUDIO SALINAS, aka “Conejo” 34 Del Rio
**JUAN CARLOS LEDEZMA, aka “Yogi” 31 Eagle Pass
MICHAEL ERIC CANTU, aka “Miklo” 28 Eagle Pass
ANSELMO FLORES, aka “Chemo” 26 formerly of Eagle Pass
**FRANCISCO JAVIER HERNANDEZ, aka “Coco” 35 Eagle Pass
**HECTOR ANGEL MARTINEZ, aka “Tonka” 35 Eagle Pass
**RAUL ADRIAN HERRERA, aka “Nano” 35 Eagle Pass
ESTEBAN MUNOZ, aka “Rock” 31 Eagle Pass
REYNALDO VIVIAN, aka “Rey” 35 Eagle Pass** Were already in custody prior to today’s arrests
Douglas, Georgia Man Charged with Armed Robbery of Wells Fargo BankRead the Press Release
WAYCROSS, GA – Nevada Powell, 33, pled not guilty yesterday before a Federal Magistrate Judge on to charges of Armed Bank Robbery, Brandishing a Firearm During a Crime of Violence, and Possession of a Firearm by a Prohibited Person. Powell was indicted by a federal grand jury sitting in Savannah earlier this month. According to the indictment, Powell stole approximately $38,000 from the Wells Fargo bank on April 16, 2014 “by force, violence and intimidation,” which included the use of a Mossberg 12 gauge shotgun and a simulated explosive device. The indictment also alleges that prior to the robbery Powell had been convicted of a felony offense. The charges follow an investigation by the Federal Bureau of Investigation, the Douglas Police Department, the Coffee County Sheriff’s Office, and the Georgia Bureau of Investigation. Powell has been ordered to remain in custody pending trial.
United States Attorney Edward Tarver commented: “Our citizens should be able to patron local businesses free from the threat of violence. The United States Department of Justice and this United States Attorney’s Office consider the cessation of violent crime and the protection of American citizens to be its top priority. We will continue to vigorously prosecute this type of activity when it occurs within federal jurisdiction.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Mr. Powell is now federally charged with a serious armed robbery wherein he also left behind a hoax IED/explosive device for law enforcement to deal with. The FBI is appreciative of the quick response by the Douglas Police Department and the Coffee County Sheriff’s Office that led to Powell’s capture as well as the hard work of the GBI in the handling of that hoax IED. “
An indictment is only an accusation and is not evidence of guilt. The Defendant is entitled to a fair trial, during which it will be the Government’s burden to prove the Defendant’s guilt beyond a reasonable doubt.
Assistant United States Attorney Jennifer G. Solari is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
District Woman Sentenced to Four Years in Prison for Death of Infant Son at Northeast Washington ConventDefendant Smothered Baby Shortly After Giving BirthRead the Press Release
WASHINGTON – Sosefina Amoa, 26, formerly of Samoa, was sentenced today to four years in prison on a charge of voluntary manslaughter stemming from the death of her infant son at a convent in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Amoa pled guilty to the charge in February 2014 in the Superior Court of the District of Columbia. She was sentenced by the Honorable Robert E. Morin. Upon completion of her prison term, Amoa will be placed on five years of supervised release. She also is subject to deportation proceedings.
According to a proffer of facts presented at the plea hearing, Amoa arrived in the United States from Samoa on Oct. 5, 2013. She then entered a program to become a member of the Little Sisters of the Poor, an international congregation of Roman Catholic women who provide worldwide service to the elderly poor. She was considered a “Postulant,” a person who wanted to be admitted into a religious order. Amoa moved into the Little Sisters of the Poor’s convent in Northeast Washington, where she was to reside for five months while she received religious classes, learned doctrine, experienced prayer and community life, and cared for residents.
On Oct. 10, 2013, Amoa asked to be excused from her duties and went to her room. The baby was born in Amoa’s room that morning. Amoa cleaned the room in what authorities determined was an attempt to hide the birth of the child.
The following morning, Oct. 11, 2013, Amoa contacted one of the Sisters and took her to her room, where she showed her the baby. The Sister knew that the infant was dead.
Amoa gave conflicting accounts to the Sisters and police about what happened. Ultimately, on Oct. 16, 2013, she told detectives with the Metropolitan Police Department (MPD) that, after she gave birth to the child, the baby fell to the floor. She said that she got on the floor next to the baby, not knowing what to do, and that she was afraid that someone would hear crying and learn of her pregnancy. According to Amoa, she then placed a wool garment over the baby’s nose and mouth and applied pressure with her hand for two to three minutes.
The District of Columbia Office of the Medical Examiner determined that the cause of death was asphyxia. The infant was a fully developed, full-term baby, born alive. There was evidence in the lungs that the baby had cried and had been alive before being asphyxiated. Additionally, there was bruising and scratches to the infant’s nostrils.
In announcing the sentence, U.S. Attorney Machen commended the work of the detectives, officers, and others who investigated the case from the Metropolitan Police Department. He also expressed appreciation to the District of Columbia Office of the Medical Examiner and the District of Columbia Department of Forensic Sciences for assistance in the investigation. Finally, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Kelly Blakeney, Victim/Witness Advocates Marcia Rinker and Lorraine Chase, and Assistant U.S. Attorney Cynthia G. Wright, who prosecuted the case.
14-119Denver Man Who Lied About War Crimes He Committed in Ethiopia in Order to Come to the United States and Become A Citizen Sentenced to 22 Years in Federal PrisonRead the Press Release
Defendant's citizenship stripped by the judge as a result of his conviction
DENVER – A Colorado man who used a false identity and lied to gain immigration status in the United States to hide his role in the torture and murder of civilians in Ethiopia in the 1970s was sentenced today in federal court to serve 22 years in federal prison. John Doe, a/k/a Habteab Berhe Temanu, a/k/a Habteab B Temanu, a/k/a “TUFA”, a/k/a Kefelegn Alemu, a/k/a Kefelegn Alemu Worku, age approximately 62, a Denver resident of Ethiopian descent, was sentenced this morning by Senior U.S. District Court Judge John L. Kane to the lengthy prison term for unlawful procurement of citizenship, making false statements on immigration documents and identity theft, U.S. Attorney John Walsh and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Kumar Kibble announced. The defendant lied on immigration forms about his involvement in the torturing and murder of people in Ethiopia during the Red Terror. Following his prison sentence, Judge Kane ordered Worku to serve 3 years on supervised release, at which time he will begin proceedings with U.S. Immigration authorities. At the sentencing hearing, Judge Kane stripped Worku of his U.S. citizenship he had obtained after immigrating to the U.S. Taking Worku’s citizenship is required based on the conviction of these crimes. The defendant appeared at the sentencing hearing in custody, and was remanded at its conclusion.
The man we now know as Kefelegn Alemu Worku was indicted by a federal grand jury in Denver on August 20, 2012. He was arrested a short time later. A superseding indictment was obtained on June 18, 2013. The defendant was convicted of all counts of the superseding indictment on October 11, 2013 following a five day jury trial before Judge Kane. The counts of conviction were the unlawful procurement of citizenship or naturalization; aggravated identity theft; and fraud and misuse of Visas, Permits and Other Documents. Worku was sentenced today, May 23, 2014.
According to court documents, and arguments at trial and at sentencing, the defendant did knowingly use the identification of another person, Habteab Berhe Temanu, to unlawfully procure citizenship or naturalization. Further, the defendant made false statements in connection with his application for naturalization which was submitted in November 2009, and which statements the defendant re-affirmed under penalty of perjury in March 2010, including falsely identifying himself as Habteab Berhe Temanu; falsely representing that he was the father of five children; and falsely responding “No” to the question: “Have you ever persecuted (either directly or indirectly) any person because of race, religion, national origin, membership in a particular social group, or political opinion.”
In May 2011, HSI received information from an informant who was a naturalized U.S. citizen, originally a native of Ethiopia, that he had recently encountered a person in Denver who he recognized as Kefelegn Alemu Worku, a prison guard during a period in the late 1970's in Ethiopia known as the “Red Terror.”
In the late 1970's in Ethiopia, Mengistu Haile Mariam assumed unofficial control of the Provisional Military Administrative Committee also known as the Dergue. The Dergue was a committee of nearly 120 military officers that established a Marxist regime and abolished Ethiopia’s Constitution and arrested the former emperor and members of the imperial government for alleged crimes against the Ethiopian people. Mengistu seized full control in 1977 which unleashed a two-year campaign known as the “Red Terror.”
During the Red Terror, tens of thousands of Ethiopian men, women and children suspected of being members or supporters of the anti-Dergue group were arrested, tortured and summarily executed. One prison that held, tortured and killed individuals was known as “Kebele 15" or “Kefetegna 15" which in English roughly translates as “Higher 15.” This prison housed approximately 1500 prisoners who had been imprisoned due to their political opinions and affiliations. During the Red Terror families of the killed or missing were often required to pay the government for the bullet used to kill the family member. Historical accounts indicate that a minimum of 10,000 people were killed in the city of Addis Ababa alone in 1977, with probably comparable numbers in the provinces in 1977 and 1978.
The witness explained that he had become a political prisoner in Ethiopia in 1978 when he was arrested and sent to the Higher 15. He witnessed Worku torture fellow prisoners and learned that other prisoners were being executed at the hands of prison guards, including Worku. The informant managed to escape the prison in September 1979. Two additional Ethiopian refugees who are now naturalized U.S. citizens who testified at sentencing also identified the defendant as Worku and recounted how Worku had personally participated in beating and torturing them at the same prison during the same time period.
HSI agents, using information obtained from the informant, determined that Worku was using the identity of Habteab B. Temanu and living in an apartment in Denver. Immigration records confirmed that Worku, using Temanu’s identity, came to the United States in July 2004 as a refugee. He lived in Denver until his indictment.
“Today, justice was done. By sentencing defendant Worku to the maximum possible term for his crime, Judge Kane sent a stern, determined message that the United States will not allow its generous asylum laws to be manipulated to create a safe haven for murderers and torturers from abroad,” said U.S. Attorney John Walsh. “Our system of justice has successfully removed the defendant from the immigrant community he once terrorized, and in so doing vindicated not only our laws, but the rights of the defendant’s many victims now living here in our country.”
“Homeland Security Investigations aggressively pursues Human Rights and War Crimes Violators like Kefelegn Alemu Worku,” said Kumar C. Kibble, special agent in charge of HSI Denver. “Our HSI investigation and partnership with the U.S. Attorney's Office to prosecute Worku show that we will not allow the United States to become a safe haven for war criminals. In the unlikely event that Worku ever completes his lengthy prison sentence, he will be transferred to ICE custody and placed in deportation proceedings. A federal immigration judge will then determine if he will be deported to Ethiopia.”
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
The defendant was prosecuted by Assistant U.S. Attorney Brenda Taylor.DEA’s Highest Ranking Guatemalan Drug Trafficker Extradited to Face Federal Drug ChargesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Juan Alberto Ortiz-Lopez, a/k/a “Chamale,” a/k/a “Juanito,” (43, San Marcos, Guatemala) has been extradited to the Middle District of Florida to face federal drug trafficking charges. If convicted, he faces a maximum penalty of life in federal prison. The indictment also notifies Ortiz-Lopez that the United States intends to forfeit any and all properties, which are traceable to proceeds of the offenses. Ortiz-Lopez was indicted on February 1, 2011 and arrested on March 30, 2011 by Guatemalan authorities.
Count one of the indictment charges Ortiz-Lopez with conspiring with other persons, including persons who were on board a vessel subject to the jurisdiction of the United States and who were first brought into the United States, at a point in the Middle District of Florida, to possess with the intent to distribute and distribute 5 kilograms or more of cocaine. Count two charges Ortiz-Lopez with conspiring with other persons to distribute 5 kilograms or more of cocaine, knowing and intending that such substance would be unlawfully imported into the United States.
Ortiz-Lopez’s indictment was obtained following a long-term investigation by the Operation Panama Express Strike Force – a multi-agency task force targeting large-scale drug trafficking organizations involved in smuggling shipments of narcotics into the United States. Ortiz-Lopez was designated under the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF) program as a Consolidated Priority Organization Target (CPOT), and was considered by the DEA to be the highest ranking drug trafficker currently operating in Guatemala. For over a decade, Ortiz-Lopez’s drug organization received multi-ton cocaine shipments in Guatemala, which would then be transported through Mexico to the United States, where the cocaine would be further distributed.
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 Drug Enforcement Administration (DEA), including DEA’s Guatemala City Country Office, the Federal Bureau of Investigation (FBI), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Coast Guard Investigative Services (USCGIS), the Joint Interagency Task Force – South (JIATF-S), and the U.S. Marshals Service (USMS), with the assistance of the U.S. Department of Justice’s Office of International Affairs and the Government of Guatemala and Guatemalan law enforcement agencies. It will be prosecuted by Assistant United States Attorney Joseph K. Ruddy.
Coordinated Effort Results in Multiple Charges Against Jordanian National and Family MembersRead the Press Release
HOUSTON - A combined federal, state and local investigation has led to the arrest of three Jordanian nationals on federal fraud charges, one of whom is also charged in state district court with murder.
The announcement is being made jointly by United States Attorney Kenneth Magidson and Harris County District Attorney Devon Anderson along with FBI Acting Special Agent in Charge Carlos J. Barron, Special Agent in Charge Robert G. Feldt of the Social Security Administration - Office of Inspector General (SSA-OIG), Houston Police Department (HPD) Chief Charles A. McClelland Jr., Harris County Sheriff Adrian Garcia, Special Agent in Charge Brian Moskowitz of Homeland Security Investigations (HSI), Montgomery County District Attorney Brett Ligon and Montgomery County Sheriff Tommy Gage.
Ali Mahmood-Awad Irsan, 57, a naturalized U.S. Citizen from Jordan and resident of Conroe, was arrested yesterday along with his wife, Shmou Ali Alrawabdeh, 37, also a Jordanian national, and daughter, Nadia Irsan, 30, a U.S. citizen. Ali Irsan and his family members are charged federally with conspiracy to defraud the U.S., theft of public money and benefits fraud. The investigation also led to charges against Ali Irsan for murder in state district court.
“The filing of both federal and state charges in this matter demonstrates the outstanding coordination between our offices and with all of the exceptional federal, state and local law enforcement partners working the investigation,” said Magidson. “This matter is a true testament of everyone’s dedication to working together and ensuring those suspected of crimes are properly charged.”
“We never forgot about this case. We will continue to work with all our law enforcement partners to make sure justice prevails,” said Anderson. “This investigation into the murder of Gelareh Bagherzadeh is far from over.”
“It is precisely these types of violent crimes the FBI will continue to address in conjunction with our local, state and federal law enforcement partners,” said Barron. “We will ensure all law enforcement resources and capabilities are brought to bear to safeguard our community.”
The federal criminal complaint was unsealed this morning in federal court in Houston. The indictment charging Ali Irsan with murder was filed in state district court yesterday.
The murder charge alleges Ali Irsan intentionally or knowingly caused the death of Gelareh Bagherzadeh on Jan. 15, 2012, by shooting her with a firearm.
Ali Irsan is not expected to personally appear in federal court today. The other two are set for an initial appearance at 2:00 p.m. before U.S. Magistrate Judge Nancy Johnson.
The charges in the federal criminal complaint allege Ali Irsan and his wife falsified documents in order to receive Social Security disability benefits with the assistance of Nadia Irsan. Ali Irsan and his family allegedly secreted assets, such as real estate, vehicles and currency, which would make him and his wife ineligible to receive benefits. Nadia Irsan, who lives with her father and is unemployed, allegedly maintained a bank account with more than $150,000 in cash for her father, which was separate from the benefits received from the SSA. The family also purchased several pieces of real estate and vehicles with cash.
“This investigation is a fine example of collaborative efforts of federal, state and local law enforcement,” said Feldt. “SSA-OIG will vigorously investigate and bring to justice, those individuals who intentionally defraud SSA programs.”
If convicted of any of the federal fraud charges, the three family members face up to 10 years in prison and a possible $250,000 fine. If convicted of murder in state district court, Ali Irsan also faces up to life in prison and a $10,000 fine.
The joint investigation was a coordinated effort conducted by the U.S. Attorney’s Office, Harris County District Attorney’s Office, FBI, HPD, Harris County Sheriff’s Office, SSA-OIG, HSI, Montgomery County District Attorney's Office and Montgomery County Sheriff's Office.
Assistant U.S. Attorney James McAlister is handling the federal prosecution, while Assistant District Attorneys Tammy Thomas and Connie Spence are prosecuting Ali Irsan on the murder charge.
A defendant is presumed innocent unless convicted through due process of law.Colfax Treating Company Pleads Guilty to Charge of Negligent Discharge of Waste into Pineville Sewer SystemRead the Press Release
ALEXANDRIA, La. –United States Attorney Stephanie A. Finley announced today that Colfax Treating Company, LLC pleaded guilty before U.S. District Judge Dee D. Drell, to one count of negligent discharge of waste materials in violation of its daily limit permit. Company representative, Johnathan Martin, pleaded guilty on the company’s behalf at the hearing.
According to evidence presented at the guilty plea, Colfax Treating Company, a wood treating facility in Pineville, La., negligently discharged pentachlorophenol on June 13, 2008, into Pineville’s sewer system, which leads to the publicly-owned water treatment works. The company discharged 7.1 milligrams per liter of the chemical in violation of the Clean Water Act. The permitted discharge amount is 5.64 milligrams per liter, which is a difference of 1.46 milligrams per liter. Pentachlorophenol is used in the company’s wood treating process.The minimum fine for the illegal discharge from the company’s property is $2,500 per day of violation, with a maximum fine of $25,000 per day of violation. Sentencing is set for August 1, 2014.
“Our environment matters, “Finley stated. “My office will continue to hold accountable those who pollute our air, land and water. Companies and their employees cannot participate in dangerous activities that place the general public in harm’s way. Hopefully this case serves as a deterrent to those who would ignore the environmental laws of this nation and state.”
“The people of Pineville, like other communities, expect a sewage treatment system that is reliable and safe,” said Ivan Vikin, Special Agent in Charge of EPA’s Criminal Investigation Division in Louisiana. “When companies violate pre-treatment rules, improperly discharged waste can sicken people, injure wildlife, and damage expensive equipment. Today’s plea demonstrates that companies will be held responsible for environmental crimes that endanger communities.”
“Pre-treatment programs are in place throughout many of the cities in Louisiana,” said Louisiana DEQ Secretary Peggy Hatch. “These programs place limits on the types and amounts of pollutants that businesses can safely discharge to the city sewers. Negligently violating pre-treatment limits is a serious issue, and we will continue to work with our federal partners at EPA CID to address and prosecute these types of crimes.”
The criminal investigation divisions of the U.S. Environmental Protection Agency and Louisiana Department of Environmental Quality, along with the FBI, conducted the investigation. Assistant U.S. Attorney Joseph G. Jarzabek prosecuted the case.
Cedar Rapids Man Pleads Guilty to Possession of A Firearm by A FelonRead the Press Release
A man who unlawfully possessed a firearm pled guilty today in federal court in Cedar Rapids.
Ramius Hardiman, age 21, from Cedar Rapids, Iowa, was convicted of one count of possession of a firearm by a felon.
At the plea hearing, Hardiman admitted that on May 8, 2013, he possessed a Taurus 9mm pistol. Hardiman is prohibited from possessing firearms due to his felony conviction for Involuntary Manslaughter in October 2011.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Hardiman remains in custody of the United States Marshal pending sentencing. Hardiman faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
This case is being prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes. The case is being prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by the Cedar Rapids Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, and Firearms.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-37.
Bullhead Man Charged with Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bullhead, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse of a Person Incapable of Consent.
Cody Long Chase, age 36, was indicted on May 13, 2014. He appeared before U.S. Magistrate William D. Gerdes on May 20, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is any term of years up to life in custody and/or a $250,000 fine, a mandatory minimum term of 5 years of supervised release, and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about April 26, 2014, Long Chase engaged and attempted to engage in a sexual act with an adult female victim, who, at the time, was incapable of declining participation in and communicating an unwillingness to engage in the sexual act.
The charge is merely an accusation and Long Chase is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Law Enforcement Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Long Chase was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Braham Man Charged with Mailing Threatening CommunicationsRead the Press Release
MINNEAPOLIS— A 45-year old Braham man was indicted yesterday for mailing threatening letters. Johnnie Earl Long was charged with one count of False Information and Hoaxes and six counts of Mailing Threatening Communications.
According to the indictment, in November 2013, Long allegedly mailed a series of threatening letters to numerous officials at the Pine County Courthouse. Although these letters contained a white powder that ultimately proved harmless, the letters suggested the powder contained a lethal pathogen.
If convicted, Long faces a potential maximum penalty of five years in prison on the false information count and five years on each threat count. Any sentence that may be imposed in this case would be determined by a federal district court judge.
This case is the result of an investigation by the Pine County Sheriff’s Office and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorneys Andrew R. Winter and Charles J. Kovats, Jr.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Bloods Gang Member Pleads Guilty <br /> to Racketeering Conspiracy in TennesseeRead the Press Release
Kenneth Gaddie, aka K.G., 24, of Nashville, Tennessee, pleaded guilty to one count of racketeering conspiracy in federal court in Nashville, announced Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney David Rivera for the Middle District of Tennessee and Special Agent in Charge Jeffrey L. Fulton for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Nashville Field Division.
According to the plea agreement, from 2006 through December 2011, Gaddie was a member and associate of the Bloods gang. He and other known Bloods gang members committed multiple acts of murder, robbery, and narcotics trafficking on behalf of the gang.
Gaddie and numerous Bloods gang members met at various locations in the Nashville area, including Shelby Park, Cedar Hill Park and the Galaxy Star Drug Awareness and Gang Prevention Center, on a regular basis to, among other things, report on gang-related business, collect dues, commit disciplinary actions against fellow gang members, discuss acts of violence against rival gang members and initiate or “jump in” new members by beating them.
Further according to the plea agreement, on June 25, 2008, Gaddie shot and wounded an individual in furtherance of the Bloods gang’s criminal enterprise. Less than one month after this incident, on July 17, 2008, Gaddie and others shot at another individual.
Thirty-seven individuals have pleaded guilty or have been convicted at trial in the Middle District of Tennessee to various crimes related to their involvement in the Bloods gang. Gaddie is the final defendant to be convicted of racketeering offenses in connection with this investigation. He is scheduled to be sentenced on Aug. 21, 2014.
The investigation was a joint operation conducted by the ATF; the Metropolitan Nashville Police Department; U.S. Marshals Service; the LaVergne, Tennessee, Police Department; and the Davidson County, Tennessee Sheriff’s Office. The case was prosecuted by Trial Attorney Kevin L. Rosenberg of the Criminal Division’s Organized Crime and Gang Section, Assistant U.S. Attorney Scarlett S. Nokes of the Middle District of Tennessee, and former Trial Attorney Cody Skipper of the Organized Crime and Gang Section.Battle Creek Man Pleads Guilty to Federal Firearms ChargesRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick A. Miles, Jr. announced today that Vincent Isaac-Peter Jones, age 28, of Battle Creek, pled guilty before U.S. District Judge Robert Holmes Bell to possessing two pistols as a convicted felon and possessing a third pistol in furtherance of heroin trafficking. Jones faces penalties of up to ten years in prison for the former offense and up to life in prison for the drug-related crime.
On January 28, 2014, Jones engaged the Battle Creek Police Department in a high-speed chase, which ended when his vehicle crashed into a snow bank. After a foot pursuit, he was apprehended and found to be carrying two loaded .45 caliber pistols. On February 19, 2014, after bonding out on state charges related to these offenses, Jones was again encountered by the Battle Creek Police Department and found in possession of a loaded .40 caliber pistol, $1,200 in cash, and heroin intended for sale.
In March 2014, Jones was indicted by a federal grand jury for possessing the .45 caliber pistols as a convicted felon and possessing the .40 caliber pistol in furtherance of drug dealing. Jones pled guilty to these charges. He was also charged with possessing heroin with intent to sell it in April 2013 and July 2013 and with possessing a fourth handgun in August 2013, but, in accordance with a plea agreement, these other charges will be dismissed at sentencing. Three of the four firearms had been reported stolen.
This case resulted from a coordinated investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Battle Creek Police Department’s Gang Suppression Unit and Special Investigations Unit.
U.S. Attorney Miles said, “Drugs and stolen guns are a toxic mix, which is only made worse when they are possessed by convicted felons. Battle Creek and West Michigan neighborhoods are safer after eliminating these guns and drugs.”
Sentencing has been scheduled for October 1, 2014. This case is being prosecuted by Assistant U.S. Attorney Russ Kavalhuna.
END
Alaska Plastic Surgeon Indicted on Tax Evasion Charges for Concealing Bank Accounts in Panama and Costa RicaRead the Press Release
The Justice Department and Internal Revenue Service (IRS) announced today that a federal grand jury in Anchorage, Alaska, returned a superseding indictment yesterday charging Michael D. Brandner, an Anchorage physician specializing in plastic surgery, on three counts of tax evasion. Brandner has also been charged with seven counts of wire fraud in an indictment returned in September 2013.
According to the superseding indictment, Brandner engaged in various activities to evade his taxes for 2008, 2009 and 2010, including making false and misleading statement to IRS special agents and filing false tax returns for each of the three years. In the three false returns, Brandner failed to report the existence of financial accounts in Panama and Costa Rica over which he had signature authority, and also failed to report foreign interest income of more than $9,000 for 2008, more than $150,000 for 2009, and more than $150,000 for 2010. The indictment also alleges that Brandner attempted to evade more than $600,000 in federal income taxes over the three years.
According to court documents, Brandner engaged in a scheme to hide and conceal millions of dollars of assets from the Alaska courts and from his wife of 28 years who was divorcing him. Shortly after the divorce was filed, Brandner left Alaska and drove to Central America after converting assets into five cashier’s checks worth over $3,000,000.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, Brandner faces a statutory maximum sentence of five years in prison for each of the three tax evasion charges and a statutory maximum sentence of 20 years in prison for each of the seven wire fraud charges.
The case was investigated by IRS-Criminal Investigation and by Homeland Security Investigations and is being prosecuted by Trial Attorney Ignacio Perez de la Cruz of the Justice Department’s Tax Division and Assistant U.S. Attorney Bryan Schroder for the District of Alaska.
22 May 2014
Woman Pleads Guilty to Theft of Government FundsRead the Press Release
ROME, Ga. - Margie Sue Goad has pleaded guilty in federal court to theft of government funds for stealing her granddaughter's Social Security benefits.
“The defendant was her granddaughter’s only family. She betrayed the child by relinquishing her into state custody and then stealing her benefits” said United States Attorney Sally Quillian Yates. “Goad’s guilty plea cannot undo the harm done to her granddaughter. It does, however, show our commitment to justice and it should serve as a deterrent to others.”
“Stealing Social Security benefits intended for the care of a child is a shameful, selfish crime,” said Thomas Caul, Special Agent in Charge, Office of the Inspector General for the Social Security Administration. “I’m gratified to see this defendant brought to justice and grateful to the U.S. Attorney for ensuring that Ms. Goad’s actions did not go unpunished. Hopefully others charged with the care of children, and receiving Social Security benefits to provide that care, will take notice that there are serious consequences for violating that trust.”
According to United States Attorney Yates, the charges and other information presented in court: Marie Goad was appointed representative payee for her minor granddaughter’s Title II Social Security Survivor’s Benefits and Title XVI Supplemental Security Income (SSI) in September 2002. She was required to use these benefits solely for the care and support of her granddaughter. Her granddaughter began receiving SSB from her deceased father's account in 1994, and SSI in 2001. Goad was required to complete yearly reports for the Social Security Administration (SSA) confirming that her granddaughter resided with her.
Goad did not notify SSA that she relinquished permanent physical and legal custody of her granddaughter to DFACS in 2002, and that the child was growing up in foster care and group homes. Instead, Goad continued to receive her granddaughter's benefits money, and spent the money on herself, and not on the child.
Sentencing for Goad, 68, of Dalton, Ga., is scheduled for July, 31, 2014, at 10:00 a.m. before United States District Judge Robert L. Vining Jr.
This case is being investigated by the Social Security Administration - Office of the Inspector General.
Special Assistant United States Attorney Diane C. Schulman is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Rome Division is http://www.justice.gov/usao/gan/.
Wichita Trucker Sentenced to 12+ Years in Child Pornography CaseRead the Press Release
WICHITA, KAN. - A truck driver from Wichita was sentenced Thursday to 150 months in federal prison for transporting child pornography, U.S. Attorney Barry Grissom said.
Joshua David Bellah, 40, Wichita, Kan., pleaded guilty to one count of interstate transportation of child pornography. In his plea he admitted that on Oct. 22, 2013, he traveled from Oklahoma to Kansas with laptops containing several thousand images of minors engaged in sexually explicit conduct. He had previously used a variety of free email accounts to obtain and exchange child pornography while he was traveling as an over-the-road truck driver.
Grissom commended the Immigration and Customs Enforcement’s Homeland Security Investigations, the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Virginia Man Sentenced to 43 Months in Federal Prison for Trafficking Firearms to ConnecticutRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAWAWN RICARDO HALE, 31, of Roanoke, Va., was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 43 months of imprisonment, followed by three years of supervised release, for his participation in a conspiracy to traffic firearms from Virginia to Connecticut, and possessing firearms as a convicted felon.
According to court documents and statements made in court, this matter stems from an investigation conducted by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Between June and August 2012, HALE sold a total of seven firearms and a quantity of ammunition to an individual in Connecticut. HALE acquired the firearms from Charles Matthew Wilson and others in Virginia, and then transported the firearms to Connecticut. Leshel Branch, of New Haven, assisted HALE in the transportation and distribution of the firearms.
On August 23, 2012, HALE, Wilson and Branch traveled to a location in New Haven where HALE sold two firearms to an individual in exchange for $2,400. Shortly after the transaction, the car carrying the three defendants was stopped by law enforcement. $2000 was recovered from the interior of the car and $400 was seized from Wilson’s person.
HALE has been detained since his arrest on August 23, 2012. On November 9, 2012, he pleaded guilty to one count of conspiracy to engage in the business of dealing in firearms without a license and one count of possession of firearms by a convicted felon.
In 1999, HALE was sentenced in Virginia state court to 40 years of incarceration for second degree murder, and a consecutive three years for use of a firearm in the commission of a murder. The sentencing judge suspended 29 years of the sentence and imposed a 15-year term of probation. HALE was released from prison in November 2011. After his release from federal custody, HALE faces violation of probation proceedings in Virginia, which could result in a sentence of up to 29 years of state incarceration.
Wilson and Branch also pleaded guilty. On April 17, 2013, Wilson was sentenced to 60 months of imprisonment, and on November 25, 2013, Branch was sentenced to five years of probation.
This case was prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]