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12 May 2014
North Miami Man Sentenced in Refund Scam Involving Large-Dollar Fraudulent Tax Refund ClaimsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, U.S. Secret Service, announce that Jeaneno Florent, 38, of North Miami, was sentenced to 60 months in prison, followed by three years of supervised release after pleading guilty to wire fraud, in violation of Title 18, United States Code, Section 1343, for a tax refund scheme that resulted in the submission of approximately $2.4 million in fraudulent refund claims. The defendant was also ordered to pay $1,226,068 in restitution.
According to the plea documents, Florent caused a false and fraudulent individual income tax return in his own name to be submitted to the IRS in January 2012. The tax return falsely and fraudulently indicated that the defendant worked at Capitol Records, Inc., made approximately $8.7 million and was entitled to a refund of approximately $613,000. In reality, the defendant had not worked at Capitol Records and was not entitled to this refund. Even though the return was fraudulent, and Florent knew the return was fraudulent, the IRS approved payment and a refund anticipation check for approximately $613,000 in the defendant’s name. Florent deposited the check in a bank account in his own name and used the proceeds for his own personal benefit.
According to plea documents and documents submitted in court, Florent submitted a similar fraudulent tax refund claim with the IRS in 2013 seeking approximately $573,000, and also conspired with Gerald Duverger who submitted similar fraudulent tax refund claims for approximately $613,000 and approximately $573,000 in Duverger’s name in 2012 and 2013, respectively.
Mr. Ferrer commended the investigative efforts of IRS-CI and the U.S. Secret Service. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
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.
New London Man Sentenced to 5 Years in Prison for Trafficking HeroinRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MIGUEL MORALES, also known as “Neow,” 54, of New London, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 60 months of imprisonment, followed by four years of supervised release, for his role for trafficking heroin.
In early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. The investigation revealed that Luis Ariel Capellan Maldonado, also known as “Ariel,” and his associates were receiving heroin from sources in the Dominican Republic and distributing it throughout New London County. At times, Capellan Maldonado also obtained large quantities of raw heroin from co-conspirators in New York City and Providence. Court-authorized wiretaps revealed that MORALES was one of Capellan Maldonado’s most frequent customers of heroin, and sometimes cocaine. MORALES then sold the narcotics from his Colman Street residence to other drug distributors and customers.
MORALES has been detained since his arrest on April 3, 2013. On January 6, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute 100 grams or more of heroin.
As part of this case, MORALES also forfeited a 2004 Pontiac GTO, a 1995 Nissan truck and a 2004 Acura TSX.
More than 100 individuals have been charged with federal and state offenses as a result of this investigation.
Capellan Maldonado has pleaded guilty and awaits sentencing.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal cases are being prosecuted by Assistant U.S. Attorneys Alina P. Reynolds, Sarah P. Karwan and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that CHARLES JOHNSON, also known as “CJ,” 33, of New Haven, was sentenced on Friday, May 9, by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force into drug distribution and related gang activity in The Hill neighborhood of New Haven. The investigation, which included the use of court-authorized wiretaps, revealed that members and associates of the Southside Bloods were distributing large quantities of crack cocaine. In February and March 2012, JOHNSON was intercepted over a wiretap ordering distribution quantities of crack cocaine from other members of the conspiracy.
JOHNSON has been detained since his arrest on September 20, 2012. On December 12, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack cocaine”).
This matter was investigated by the FBI’s New Haven Safe Streets Task Force, including the New Haven, Hamden and Milford Police Departments, and the State of Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Gordon Hall.
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(203) 821-3722 [email protected]Nashville Man Sentenced to 135 Months for Marijuana ConspiracyRead the Press Release
Joshua Lee Alan Eichel, 32, of Nashville, Tenn., was sentenced on May 8, 2014, to 135 months in prison by U.S. District Court Judge Kevin H. Sharp, for conspiring to possess and distribute 1,000 kilograms of marijuana, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. The prison term will be followed by five years of supervised release.
Eichel was indicted by a federal grand jury in April 2013 and pleaded guilty in December 2013.
As described in Eichel’s plea agreement, in a statement Eichel gave to agents following his arrest in March 2013, he claimed to have been the largest hydroponic marijuana dealer in Nashville. Eichel told agents he was the leader of a conspiracy whose members purchased large amounts of marijuana from a variety of sources in California and Oregon. Eichel also explained to agents how he and his co-conspirators would then ship the marijuana to the Nashville area in order to resell it.
Agents had previously identified and intercepted a number of packages shipped by members of the conspiracy prior to executing a search warrant at Eichel’s residence, located at 121 Grant Park Dr. in Franklin, Tenn. on March 13, 2013. During the execution of the search warrant, Agents found and seized packaging materials, shipping materials, and approximately $21,000 cash.
Prior to this conviction, Eichel had been convicted in the Middle District of Tennessee, in 2003, of distributing cocaine and conspiring to possess marijuana with intent to distribute.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation, and the United States Postal Inspection Service, as well as the 18th and 21st Judicial District Drug Task Forces, the Franklin Police Department, and the Tennessee Alcoholic Beverage Commission. The United States was represented by Assistant U.S. Attorney Brent A. Hannafan.
Nampa Man Sentenced in Meth CaseRead the Press Release
BOISE – Robert Craig Dupont, 37, of Nampa, Idaho, was sentenced today to 42 months in prison followed by three years of supervised release for distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. Dupont appeared before Hon. John C. Coughenour, U.S. District Judge for the Western District of Washington, at the federal courthouse in Boise. He pleaded guilty to the charge on December 13, 2013.
According to the plea agreement, Dupont admitted that he sold methamphetamine on two separate occasions. The first transaction occurred on November 28, 2012, when Dupont sold approximately one-quarter ounce of methamphetamine to a confidential informant for $380. The second transaction occurred on January 3, 2013, when Dupont sold approximately one-quarter ounce of methamphetamine to an undercover police officer for $450.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force and the Meridian Police Department. The Treasure Valley Metro Violent Crimes Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
Dupont was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Missouri Man Sentenced to 30 Years for Child Sexual ExploitationRead the Press Release
A man who sexually exploited a child was sentenced May 9, 2014, to 30 years in federal prison.
James Jones, age 51, of Maysville, Missouri, received the sentence after a February 20, 2014, guilty plea to one count of sexual exploitation of a child. At the guilty plea hearing, Jones admitted that, in 2010, he persuaded, induced, and enticed a 12-year-old female in Fayette County to take pictures of her genital area and send the pictures to him. Jones previously had been convicted of taking indecent liberties with a child in North Carolina in 1981.
Jones was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Jones was sentenced to 360 months’ imprisonment, including credit for time served in a related state case. A special assessment of $100 was imposed, and Jones must also serve a ten-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Federal Bureau of Investigation, the Fayette County Sheriff’s Office, and the DeKalb County, Missouri, Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-2038.
Missouri Man Sentenced for Robbery, Shooting at Leawood McDonald'sRead the Press Release
KANSAS CITY, KAN. - A Missouri man was sentenced Monday to 100 months in federal prison for a robbery and shooting at a McDonald’s restaurant in Leawood, Kan., U.S. Attorney Barry Grissom said. The sentenced is to be served consecutively to a 60-month sentence previously imposed in a case in federal court in the Western District of Missouri.
Nicholas Martell McGinnie, 26, Kansas City, Mo., pleaded guilty to one count of robbery. In his plea he admitted that on Dec. 1, 2012, he went to a McDonald’s at 4600 W. 119th Street in Leawood to rob the restaurant. He hid in a men’s restroom and waited about half an hour for the restaurant to close. Then he confronted the store manager with a pointed handgun and demanded money. The store manager resisted and attempted to push him out a door of the restaurant. During the struggle, McGinnie fired his gun, striking the manager in the legs. The store manager was treated for gunshot wounds and recovered.
McGinnie was arrested Jan. 3, 2013, after police recovered his fingerprints from the scene of the shooting.
Grissom commended the Leawood Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Mike Warner for their work on the case.Minnesota Man Indicted for Sexual Assault <br /> on U.S. Air Force Base in Okinawa, JapanRead the Press Release
A Minnesota man who worked at Kadena Air Force Base in Okinawa, Japan, was indicted today in the District of Minnesota on charges of sexual abuse, production of child pornography and possession of child pornography.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Andrew M. Luger of the District of Minnesota, Executive Assistant Director John F. Wagner of the Naval Criminal Investigative Service’s (NCIS) Pacific Operations and Special Agent in Charge J. Chris Warrener of the FBI’s Minneapolis Field Office made the announcement.
According to the indictment, Ricky Isiah Sherwood, 18, of White Bear Lake, Minnesota, an employee on Kadena Air Force Base and a dependent of a military member, sexually assaulted a minor on the base on or about Feb. 11, 2014, and filmed parts of the assault using his cellular phone.
The Military Extraterritorial Jurisdiction Act gives U.S. federal courts jurisdiction over felonies committed abroad by certain persons employed by or accompanying the U.S. Military.
On May 7, 2014, Sherwood was arrested on a complaint at Kadena Air Force Base and made an initial appearance via telephone before Magistrate Judge Tony Leung in the District of Minnesota. The court ordered that Sherwood be detained and removed from Japan to the United States.
This case is being investigated by the NCIS and the FBI. This case is being prosecuted by Trial Attorney Ann Marie Ursini of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Katharine Buzicky of the District of Minnesota.
The charges in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.Meth Ring Leader Gets 30 Years in Federal PrisonRead the Press Release
BROWNSVILLE, Texas – Houston resident Alexander Ortega, 24, has been ordered to prison following his convictions of conspiracy to possess with intent to distribute and conspiring to import approximately 5.1 kilograms of methamphetamine, announced United States Attorney Kenneth Magidson. A federal jury in Brownsville convicted Ortega on Feb. 6, 2013, following three days of trial.
Today, U.S. District Judge Hilda G. Tagle, who presided over the trial, handed Ortega a total of 360 months in prison for each of the four counts of conviction to be served concurrently. In handing down the sentence, Judge Tagle noted the amount of drugs involved and Ortega’s role as leader of the conspiracy. Ortega will also be required to serve a term of five years of supervised release following completion of the prison term.
At trial, the government presented evidence that on March 13, 2011, Omar Lerma-Teniente, 24, of Houston, was caught at the Gateway International Port of Entry with approximately with approximately 5.1 kilograms of methamphetamine hidden underneath the rear seat of the car. Subsequently, on Oct. 24, 2011, John Phelps, 26, of Houston, and William Holley, 27, of Houston, were arrested at the Hidalgo Port of Entry for attempting to smuggle approximately 20 kilograms of methamphetamine into the United States. The investigation linked both cases to Ortega.
At trial, the government proved Ortega recruited Lerma-Teniente, Phelps and Holley, having paid them to smuggle the methamphetamine into the United States from Mexico.
Lerma-Teniente, Phelps and Holley were all also convicted in separate, but related cases.
Ortega will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by Homeland Security Investigations. Assistant United States Attorney Ana Cano is prosecuting.
Meth Dealer Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Jorden Barraco, age 34, of Baltimore, Maryland, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute methamphetamine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Carroll County Sheriff Kenneth Tregoning; Chief Jeffrey Spaulding of the Westminster Police Department; and Carroll County State’s Attorney Jerry Barnes.
According to Barraco’s plea agreement, from June through July 2013, Barraco participated in a conspiracy to distribute methamphetamine. On July 7, 2013, members of the Carroll County Drug Task Force tracked Barraco’s vehicle as Barraco traveled from a motel in Timonium, Maryland to Wilmington, Delaware, to obtain narcotics. Barraco spent less than 30 minutes in Wilmington before beginning his return to Maryland. On the way back, Barraco’s vehicle was stopped by the Maryland State Police. A canine alerted for the presence of drugs in the vehicle. During a subsequent search of the vehicle, law enforcement recovered four clear bags containing a total of 112.9 grams of methamphetamineUnited States Attorney Rod J. Rosenstein praised HSI Baltimore and the Carroll County Drug Task Force, comprised of the Maryland State Police, Carroll County Sheriff’s Office, Westminster Police Department and the Carroll County State’s Attorney’s Office, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Seema Mittal, who prosecuted the case.
Men Convicted of Stealing Controlled Substances and Designer Goods from Las Vegas Warehouses and Delivery DriversRead the Press Release
LAS VEGAS, Nev. – Following a 10-day jury trial, three men who were breaking into warehouses and delivery vans in the Las Vegas area and stealing controlled substances and designer goods, and had planned to kidnap and rob a delivery driver, were convicted by a federal jury today of conspiracy, robbery, theft, firearm, and other charges, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
“The U.S. Department of Justice will work with our local law enforcement partners and use federal laws to prosecute persons who use guns and violence to commit robberies and thefts in our community,” said U.S. Attorney Bogden. “Not only were these defendants committing thefts and planning a violent robbery, but they were selling stolen controlled substances causing additional harm to the community.”
Julio De Armas Diaz, 54, Alexis Torres Simon, 45, and Alexander Del Valle Garcia, 41, all of Las Vegas, were all convicted of one count of conspiracy to interfere with commerce by robbery, one count of attempted interference with commerce by robbery, one count of possession of a firearm in furtherance of a crime of violence, and one count of conspiracy to commit theft from interstate shipment. Additionally, Garcia was convicted of one count of making a false statement to the FBI, Diaz was convicted of one count of making a false statement to the FBI and three counts of theft from interstate shipment, and Simon was convicted of one count of felon in possession of a firearm and three counts of theft from interstate shipment. They are in custody and are scheduled to be sentenced on Aug. 18, 2014, by U.S. District Judge Jennifer A. Dorsey.
According to the court records and evidence introduced at trial, beginning no later than about October 2012 and continuing to April 8, 2013, Diaz and Simon broke into warehouses, storage facilities, and delivery vans, and stole designer handbags and controlled substances and sold the goods for their own financial gain. The defendants broke into warehouses by cutting through warehouse doors, and broke into delivery vans and other vehicles that had been left unsupervised in commercial parking lots. Between April 4 and April 8, 2013, Diaz, Simon and Garcia conspired to kidnap and rob a delivery van driver with a firearm in order to obtain control and possession of the van containing controlled substances. On April 8, Garcia falsely told FBI agents that he was driving a friend to apply for a job the morning of his arrest and that gloves and duct tape found in the car he was driving belonged to the registered owner of the vehicle. On April 8, Diaz falsely told the FBI that he had no knowledge of a Beretta 9mm firearm recovered that day from the trunk of his vehicle, when he knew that the firearm had been placed in the trunk to be used that day in the planned robbery and theft of the van driver.
The defendants face up to 20 years in prison on each of the two robbery charges, up to five years in prison on the conspiracy to commit theft charge, and five years minimum mandatory, which must be served consecutively, on the firearm charge. Garcia and Diaz also face up to five years in prison for making a false statement to law enforcement. Diaz and Simon also face up to 15 years on each theft from interstate shipment charge, and Simon also faces up to 10 years in prison on the felon in possession charge. Each defendant also faces fines of up to $250,000 on each count.
This case was investigated by the FBI and the Las Vegas Metropolitan Police Department, and prosecuted by Assistant U.S. Attorneys Christina M. Brown and Daniel R. Schiess.Men Convicted in Murder of Coast Guard Officer Sentenced to Prison; Pilot of Drug Smuggling Boat Receives Life Without ParoleRead the Press Release
LOS ANGELES – Two Mexican nationals who were found guilty of federal charges stemming from an incident in which a Coast Guard officer was killed when his vessel was rammed by a “panga” boat were sentenced today.
The operator of the panga boat was ordered to spend the rest of his life in federal custody after a jury earlier this year convicted him of second-degree murder in the death of Senior Chief Petty Officer Terrell Horne III, who died in late 2012 while his boat was attempting to interdict the panga boat near Santa Cruz Island in the Channel Islands National Park.
The two men sentenced today are:
Jose Mejia-Leyva, 42, of Ensenada, who was sentenced to life without parole for his murder conviction, as well as two counts of failure to heave to and four counts of assaulting federal officers with a deadly and dangerous weapon; and
Manuel Beltran-Higuera, 44, of Ensenada, who was sentenced to 10 years in federal prison after a jury found him guilty of two counts of failure to heave to (as an accessory after the fact in one count and as an aider and abettor in the second count) and in the four counts of assault (as an accessory after the fact).
Both defendants were sentenced by United States District Judge Gary A. Feess. Senior Chief Petty Officer Horne, a 34-year-old Redondo Beach resident, was the first Coast Guard officer murdered while in the line of duty by smugglers since 1927.
Senior Chief Petty Officer Horne was killed during a law enforcement operation that began late on December 1, 2012 when a Coast Guard airplane identified a suspicious boat about one mile off Santa Cruz Island. After Coast Guard personnel on the Coast Guard cutter Halibut boarded the boat, the airplane identified another suspicious vessel nearby in Smuggler’s Cove on Santa Cruz Island. The airplane reported that the suspicious vessel in Smuggler’s Cove was an approximately 30-foot-long open bowed fishing vessel, commonly referred to as a panga boat.
Coast Guard officers aboard the Halibut launched the Halibut’s small, inflatable boat with four officers aboard. The Coast Guard small boat crew located the panga boat approximately 200 yards from the eastern shore of Santa Cruz Island at approximately 1:20 a.m. on December 2. As the Coast Guard’s small boat approached the panga boat, the officers activated the boat’s police lights and identified themselves as law enforcement. The driver of the panga boat then throttled the engines and steered the panga boat toward the small boat. As the panga boat rapidly approached the Coast Guard’s small boat, the officer at the helm attempted to avoid a collision by steering the small boat out of the path of the panga boat.
Despite these efforts, the panga boat rammed into the Coast Guard’s small boat, ejecting Senior Chief Petty Officer Horne and another officer into the water. Senior Chief Petty Officer Horne was struck by a propeller in the head and sustained a fatal injury. The other officer sustained a laceration to his knee.After striking the Coast Guard’s small boat, the panga boat crew fled the scene. Coast Guard aircraft followed the panga boat until it was intercepted by a Coast Guard vessel about four hours later as it approached the Mexico-United States border. Mejia-Leyva and Beltran-Higuera were arrested at this point.
Prosecutors argued for the life sentence for Mejia-Leyva, noting in court papers that he was previously convicted in the United States of smuggling aliens and was twice convicted in Mexico of narcotics offenses. “The seriousness of defendant’s conduct and his criminal history demonstrates that he is an established recidivist whose pattern of smuggling and narcotics trafficking only aggravates the seriousness of the crime of murder,” prosecutors wrote of Mejia-Leyva.
The investigation in this case was conducted by the Coast Guard Investigative Service (CGIS) with the assistance of the Los Angeles Border Enforcement Security Task Force (LA BEST) in San Pedro.
Release No. 14-060
McKeesport Fish Store Manager Defrauded Food Stamp ProgramRead the Press Release
PITTSBURGH - A McKeesport store manager pleaded guilty in federal court to a charge of theft of government property, United States Attorney David J. Hickton announced today.
Nichole Bires, 36, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Bires was the manager at H&H Fish Market, a small retail food store in McKeesport. In October 2009, H&H began participating in the USDA's food stamp program. As a condition of participation in the food stamp program, the owners and employees of H&H were required to comply with all rules and regulations of the program and were aware that program rules prohibited the exchange of food stamp benefits for cash and/or ineligible items. Despite this knowledge, on multiple occasions, Bires exchanged customers’ food stamp benefits for cash on a discounted basis, usually giving the customers only 50 cents on the dollar for food stamp benefits.
Judge Bissoon scheduled sentencing for Aug. 26, 2014, at 10 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. 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.
Pending sentencing, the court continued the defendant’s bond.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Office of the Inspector General for the United States Department of Agriculture, the Department of Homeland Security, Homeland Security Investigations and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Bires.
Long Island Real Estate Manager Pleads Guilty in $96 Million Ponzi SchemeRead the Press Release
Earlier today, Adam J. Manson, 42, pleaded guilty to conspiracy to commit securities fraud for engaging in a $96 million Ponzi scheme with co-defendant and former investment fund manager Brian R. Callahan. Pursuant to his plea agreement with the government, Manson has agreed to forfeit all unsold units at the Panoramic View beachfront resort and residence development in Montauk, New York, valued in excess of $60 million, and an additional $3.9 million in criminal proceeds. When sentenced on October 3, 2014, Manson faces up to five years in prison and the payment of approximately $96 million in restitution to the victims of his fraud. Callahan pleaded guilty on April 29, 2014, to one count of securities fraud and one count of wire fraud and faces up to 40 years in prison when sentenced on August 8, 2014.
The guilty pleas were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Shantelle P. Kitchen, Acting Special Agent-in-Charge, United States Internal Revenue Service-Criminal Investigation, New York (IRS).
“Adam Manson assisted his brother-in-law Brian Callahan in orchestrating one of the largest Ponzi schemes in Long Island history by lying to independent auditors and lending institutions. Today’s guilty plea, together with Callahan’s guilty plea approximately two weeks ago, demonstrates this Office’s dedication and commitment to aggressively pursue those who seek to defraud the investing public through lies and deceit. We hope that the guilty pleas provide some measure of relief and closure to the defrauded investors,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the FBI, the IRS, Securities and Exchange Commission, and the British Virgin Islands Financial Investigation Agency for their cooperation and assistance in the investigation and prosecution of this case.
According to court filings and facts presented at the plea hearing, between December 2006 and February 2012, co-defendant Callahan raised more than $118 million from at least 40 investors in connection with four different investment funds that he managed. Callahan had assured those investors that their money would be invested in mutual funds, hedge funds, and other securities. Instead of investing the money as he promised, Callahan misappropriated approximately $96 million and began to operate the investment funds as a large-scale Ponzi scheme. Among other things, Callahan diverted millions of dollars towards the Panoramic View, an unprofitable 117-unit beachfront resort and residence development in Montauk, New York, which he owned with Manson. In furtherance of the scheme, Manson assisted Callahan in deceiving the independent auditors of the Callahan funds by submitting bogus promissory notes that overvalued the assets of the funds and by lying about the debts owed by the Panoramic View.
Today’s guilty plea took place before United States Magistrate Judge A. Kathleen Tomlinson.
The government’s case is being prosecuted by Assistant United States Attorneys Christopher C. Caffarone, Winston M. Paes, Brian D. Morris, and Karin K. Orenstein.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The Defendant:
ADAM J. MANSON
Age: 42
Old Westbury, New York
E.D.N.Y. Docket No. 13-CR-453
Logan County Man Pleads Guilty to Fraudulently Obtaining Credit CardsRead the Press Release
Charleston, W.Va. – U.S. Attorney Booth Goodwin announced that Joseph Hurley, 28, of Man, West Virginia pleaded guilty today to fraudulently obtaining credit cards, which are considered “access devices” under federal criminal laws. In January of 2013, Hurley used the names and social security numbers of two relatives with whom he was living to apply for credit cards. Hurley successfully obtained Citibank credit cards and immediately charged more than $5,000 before Citibank’s fraud department suspended the accounts.
Hurley faces up to ten years of incarceration, a $250,000 fine and up to three years of supervised release. Hurley will also be required to make full restitution for the fraudulent charges. Sentencing is scheduled for August 20, 2014 before the Honorable John T. Copenhaver, Jr.
The United States Secret Service and the United States Postal Inspection Service conducted the investigation. Assistant United States Attorney Erik S. Goes handled the prosecution.
Local Woman Indicted on Federal ChargesRead the Press Release
St. Louis, MO – CARMEN A. FLUKER, a/k/a Carmen Simmons a/k/a Carmen Lacy a/k/a “Lucious,” was indicted for her alleged promotion of prostitution between May 2011 and April 2014.
Fluker, Bel-Ridge, Missouri, will appear in federal court today for her initial appearance.
If convicted, this charge carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the St. Louis County Police Department’s Special Investigations Unit.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Leaders of Large-Scale Drug Ring Flee Before Jury Returns Guilty VerdictsRead the Press Release
Three individuals from metro-Detroit were convicted of violating various federal drug laws in a massive drug ring that trafficked hundreds of kilograms of heroin and cocaine, and thousands of pounds of marijuana in metro-Detroit, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Acting Special Agent in Charge James V. Allen, Drug Enforcement Administration, Detroit Division.
The drug ring, which was one of the largest in metro-Detroit history, also laundered in excess of $21 million in U.S. currency. After the trial was finished but before the verdict was returned by the jury, the three men, Carlos Ellis Powell, age 39, of Washington Township, MI, Eric Jerome Powell, age 36, of Franklin Farms, MI, and Earnest Lee Proge, Jr., age 38, of Detroit, MI, fled. Law enforcement is actively searching for these men. They should be considered armed and dangerous. Anyone with information on their whereabouts should contact that United States Marshals at 313-234-5656.
A fourth defendant, Kenneth Robert Daniels, age 54, of Detroit, MI, a former Michigan State Representative for Detroit Fifth’s District, was also convicted of structuring financial transactions for the leader of the drug ring, Carlos Ellis Powell. Unlike the other three defendants, Mr. Daniels appeared for the jury’s verdict.
The Drug Enforcement Administration’s investigation of the drug ring uncovered a massive operation that began in 2006 and continued until late 2010. Carlos Powell, Eric Powell, Earnest Proge, and ten others operated a drug organization which dealt in multi-kilogram quantities of marijuana, heroin and cocaine in the Detroit metropolitan area. The members of the organization would arrange for large amounts of money derived from the sale of drugs to be transported to Phoenix, Arizona, Mexico and elsewhere for the purpose of purchasing more controlled substances. As part of the conspiracy, the members of the organization would use semi-trucks and vehicles equipped with traps and hidden compartments to transport marijuana, cocaine and heroin, as well as cash generated from the sale of these drugs.
Since 2006, law enforcement officers from across the country have seized over 12 kilograms of cocaine, 30 kilograms of heroin and 1000 pounds of marijuana destined for distribution by this organization. More than $21 million in cash was seized by law enforcement officers between June 2010 and November 2010 alone. Law enforcement also seized jewelry appraised at over $800,000, 8 pieces of real property in Michigan and Georgia valued in excess of $750,000, 10 vehicles, including a 2004 Rolls Royce, 2006 and 2008 Bentley, a 2006 Ferrari, 4 Mercedes, a Ranger Rover and two boats.
The members of this organization, using the illegal proceeds of their narcotic sales, purchased and leased numerous luxury vehicles, acquired and sold real property and purchased jewelry while concealing the true source and nature of the funds involved in the transaction through false names and nominee purchasers.
The members of the organization would deposit large amounts of cash derived from the sale of drugs into various bank accounts; purchase cashier's checks and money orders; and wire transfer these funds. These funds would then be used to purchase assets and pay personal expenses with the goal of concealing the true source, nature and ownership of the funds which had been derived from the organization's drug sales.
This case was investigated by special agents of the Drug Enforcement Administration, Internal Revenue Service, Criminal Investigation, U.S. Immigration and Customs Enforcement, Office of Homeland Security Investigations with the assistance of officers from Northville Township Police Department, Plymouth Township Police Department, Warren Police Department, Redford Police Department, Macomb County Sheriff’s Office, Detroit Police Department and the Michigan State Police.Leader of Drug-Trafficking Organization Sentenced to 15 YearsRead the Press Release
United States Attorney Laura E. Duffy announced today that Jesus Manuel Rivera-Villareal, aka “Chuy,” was sentenced to 15 years in prison for his role as a leader in a family-run drug-trafficking organization (DTO) that recruited young women to smuggle controlled substances into the United States.
Rivera-Villareal, who was sentenced by U.S. District Judge M. James Lorenz, pled guilty to conspiracy to import methamphetamine, cocaine, and heroin.
In August 2011, agents with the Department of Homeland Security, Homeland Security Investigations (HSI) in San Diego, California, began investigating the Rivera-Villareal DTO for its involvement in importing large quantities of narcotics into the United States. Using four recruiters, Rivera-Villareal and an associate hired, at least, five young women from the Riverside area to smuggle 27.38 kilograms of cocaine, 6.16 kilograms of pure methamphetamine, and 2.99 kilograms of heroin into the United States. After hiring the women, Rivera-Villareal arranged for another associate to load up the narcotics into secret compartments of various cars during brief trips to Mexicali, Mexico. Once the cars were loaded with narcotics, Rivera-Villareal returned the cars to the women who would then drive them into the United States in exchange for money.
United States Attorney Duffy complimented the efforts of HSI and stated, “This investigation demonstrates the commitment of the U.S. Department of Justice to keep dangerous drugs off the streets of our community by aggressively prosecuting high-level leaders of drug trafficking organizations.”
DEFENDANT Case Number: 13-cr-3920-L Jesus Manuel Rivera-Villareal Age: 32 Corona, CA CHARGESTitle 21 U.S.C. §§ 952, 960, 963 Conspiracy to Import Controlled Substances
Maximum penalties: Mandatory Minimum of 10 years in prison; Maximum of Life in prison; Maximum $10 Million fine; 5 years of supervise release.
INVESTIGATING AGENCYHomeland Security Investigations
*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Leader of Bryan Drug Distribution Ring Receives 212 MonthsRead the Press Release
HOUSTON - Donal Monta Amerson, 37, of Missouri City, has been ordered to federal prison for nearly 18 years for operating a cocaine and marijuana distribution organization in Bryan, announced United States Attorney Kenneth Magidson.
Amerson was indicted Sept. 27, 2010, and soon fled the Houston area. He was apprehended April 5, 2013, in the Dallas area by agents and officers of an FBI task force in Dallas. He pleaded guilty Nov. 25, 2013, to aiding and abetting possession with intent to distribute up to 100 kilograms of marijuana and more than 500 grams of cocaine.
Also charged were Jumond Anthony Burrell, 32, of Hearne, Zarick Banard Shivers, 34, and Johnnie Willie Hickman, 73, both of Bryan, and Bennie Ray Hawkins Jr., 25, of College Station. All pleaded guilty and have been sentenced to varying terms for their roles in the conspiracy.
During his sentencing hearing, Amerson challenged the manner in which the court calculated the amount of drugs distributed through the organization as well as the allegation that he was the organization’s leader.
U.S. District Judge Lynn N. Hughes rejected Amerson’s claims, finding that between December 2008 and April 2010, Amerson, through his organization, distributed hundreds of kilograms of cocaine onto the streets of Bryan.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI worked jointly with the Bryan Police Department in the investigation. Former Assistant U.S. Attorney (AUSA) Kenneth P. Dies prosecuted the case. AUSA Richard Hanes handled the sentencing.
Laurel Man Sentenced to 30 Years in Prison for Sex with A 7-Year OldRead the Press Release
Defendant Had Intercourse with Child and Took Pictures
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Anthony Palomino-Coronado, age 21, of Laurel, Maryland, today to 30 years in prison, followed by lifetime supervised release, for sexual abuse of a minor to produce child pornography. Judge Titus ordered that upon his release from prison, Coronado must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
“Child exploitation cases often turn your stomach, and this is one of them,” said U.S. Attorney Rod J. Rosenstein.
According to evidence presented at Coronado’s five day trial, on May 2, 2012, the Prince George’s County Police Department responded to a 911 call regarding a missing seven year old female child. During the subsequent search, at approximately 2:20 a.m., the child was found next to a privacy fence that separated the child’s residence from Coronado’s. At the base of the fence on Coronado’s side, officers found an empty condom wrapper. The child was not wearing any underwear and told officers that Coronado asked her to meet him at his house, then helped her get back into her yard when the police arrived.
Witnesses testified that during subsequent separate interviews with a sexual assault nurse, Prince George’s County Police detective and FBI child forensic interview specialist, the victim stated: that she had been to Coronado’s home, specifically his basement, 10 times; that Coronado had been engaging in sexual activity with her, including vaginal sex; and that Coronado had taken pictures of her, with and without her clothes on, with his black and red cellular telephone.
Trial evidence showed that a search warrant executed at Coronado’s residence recovered, among other things, a black and red cell phone, which contained a photo documenting Coronado’s sexual abuse of the child. A forensic examination established that the photo was taken on March 20, 2012, and had been deleted. In addition, six photos of the victim clothed, in the basement, and under the light of a flashlight were also found on the phone. Digital data established that these photos were taken on May 2, 2013, between 1:00 and 2:00 a.m. According to trial testimony, after his arrest the next day, Coronado denied engaging in sex activity with the victim, but admitted that during the night of May 2, 2012, the victim was at his home between 11:00 p.m. and 2:00 a.m., “playing games.”
During trial, on November 20, 2013, the victim testified that Coronado had engaged in sexually explicit conduct with her and identified herself and Coronado in the child pornography picture found on Coronado’s cell phone, as well as in the clothed pictures taken on May 2, 2012, in the basement of Coronado’s residence.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Prince George’s County Police Department and the Prince George’s County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section and Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.
Laser Strikes: Clovis Defendant Sentenced, Bakersfield Defendant Pleads GuiltyRead the Press Release
FRESNO, Calif. — Today, United States District Judge Lawrence J. O'Neill sentenced Jennifer Lorraine Coleman, 24, of Clovis, to two years in prison, to be followed by three years of supervised release, for aiming a laser pointer at a law enforcement aircraft, and Brett Lee Scott, 26, of Bakersfield, entered a guilty plea to the same crime, United States Attorney Benjamin B. Wagner announced.
Coleman and her boyfriend, Sergio Patrick Rodriguez, 26, of Clovis, were both convicted by a federal jury after a three–day trial in Fresno in December 2013.
“Coleman and Rodriguez demonstrated outrageous and willful disregard for the safety of aviators, Air George’s patients, and the public,” said Special Agent in Charge Monica M. Miller of the Sacramento FBI. “The FBI and our state and local law enforcement partners are committed to locating, identifying, and arresting individuals who intentionally shine lasers at aircraft aloft, recklessly jeopardizing the safety of the communities we serve.”
According to evidence presented at trial, Coleman and Rodriguez used a high‑powered green laser pointer to repeatedly strike the cockpit of a Fresno Police helicopter, Air 1, during a clear summer night in 2012. Air 1 had responded to the apartment complex where Coleman and Rodriguez lived near the Fresno Yosemite International Airport, to investigate the report of laser strikes on Air George, an emergency transport helicopter for Children’s Hospital of Central California. The laser pointer that Coleman and Rodriguez used was 13 times more powerful than the permissible power emission level for hand-held laser devices. The crew members of both Air 1 and Air George testified that the laser strikes caused significant visual interference.
In imposing sentence, Judge O’Neill considered the opinion of Dr. Leon McLin, a Senior Research Optometrist for the Air Force Research Laboratory who testified at trial, that the laser pointer that Coleman used was an instrument capable of inflicting serious bodily injury and, indirectly, death due to a high potential for crash caused by visual interference.
Judge O'Neill found the high‑powered laser pointer was a dangerous weapon, and referring to the potential for a crash resulting from the pilots’ impaired vision stated, "I physically shudder to think of what could have happened."
The Coleman case was the product of an investigation by the Federal Bureau of Investigation, with assistance from the Clovis and Fresno Police Departments, Federal Aviation Administration, and the National Institute of Standards and Technology of the U.S. Department of Commerce. Assistant United States Attorneys Karen A. Escobar and Michael G. Tierney prosecuted the case.
In a separate laser case, Scott pleaded guilty to aiming a laser pointer at a Kern County Sheriff helicopter, also known as Air-1. Scott acknowledged that he used two different laser pointers to strike Air-1 over a six-month period. The lasers emitted powerful green and purple laser beams. As a result, the pilots of Air-1 suffered flash blindness that lasted a few minutes, causing disorientation. The pilots were ultimately able to pinpoint the origin of the beams and, with the help of patrol deputies, identified Scott as a suspect.
Sentencing for Scott is set for July 21, 2014. He faces a maximum statutory penalty of five years in prison and a $250,000 fine for aiming a laser pointer at Air-1. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The case against Scott was the result of a joint investigation conducted by the FBI and Kern County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar is prosecuting this case.
According to the FAA, there were 3,960 reports of people shining lasers at aircraft in the United States in 2013. In the Eastern District of California, which encompasses 34 counties in the eastern portion of California, reported 94 laser strikes, with the largest number of laser incidents reported by the Fresno Yosemite International Airport and Bakersfield Meadows Field Airport. Law enforcement and emergency transport helicopters are particularly vulnerable, since they typically fly at lower altitudes. Their convex-shaped windows also cause greater refraction and visual interference when the beam of a laser strikes. Night-vision goggles can also amplify the beam and pose a greater threat of visual interference.
Earlier this year, as a result of the increasing threat of laser strikes on aircraft, the FBI in Sacramento, along with several other cities in the United States that have reported a large number of laser incidents, launched a public awareness campaign regarding the issue and offered a $10,000 reward for information that leads to the arrest of a laser offender. Since the launch of the public awareness campaign, the FBI reports a decrease in the number of laser incidents.
Justice Department to Monitor Elections in NebraskaRead the Press Release
The Justice Department announced today that it will monitor elections on May 13, 2014, in Colfax and Douglas Counties, Nebraska, to ensure compliance with the Voting Rights Act and other federal voting rights statutes. The Voting Rights Act prohibits discrimination in the election process on the basis of race, color or membership in a minority language group.
In Colfax County, the department will assign federal observers from the U.S. Office of Personnel Management (OPM) to monitor polling place activities based on a court order. The observers will watch and record activities during voting hours at polling locations in this jurisdiction, and Civil Rights Division attorneys will coordinate the federal activities and maintain contact with local election officials.
In addition, department personnel will monitor polling place activities in Douglas County. A Civil Rights Division attorney will coordinate federal activities and maintain contact with local election officials.
Each year, the department deploys federal observers from OPM and departmental staff to monitor elections across the country. To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Civil Rights Division at 1-800-253-3931.
Visit this website for more information about the Voting Rights Act and other federal voting laws.
Jury Convicts Humble Man on All Charges in Health Care Fraud ConspiracyRead the Press Release
HOUSTON – Lawrence Tyler, 41, has been convicted of conspiracy to commit health care fraud, seven counts of health care fraud and one count of money laundering, announced United States Attorney Kenneth Magidson. The verdicts were returned just moments ago following five days of trial and less than four hours of deliberation.
Tyler, of Humble, ran a durable medical equipment company called 1866-ICPayday.com from 2006 to 2008.
The evidence at trial showed that between January 2007 and December 2008, Tyler engaged in a scheme to defraud Medicare and Medicaid. He falsely billed Medicare and Medicaid for so-called “ortho kits” which consisted of an assortment of various back, knee, ankle, wrist and shoulder braces. Tyler allegedly billed for equipment that was never delivered, billed for equipment using prescriptions from a physician who never treated the patients and upcoded - billed for a higher reimbursed brace but delivered a cheaper brace that either did not fit the billing code or did not qualify for any Medicare reimbursement. During the conspiracy, Tyler submitted approximately $3 million in claims for durable medical equipment and was paid approximately $1.4 million by Medicare and Medicaid.
The evidence at trial also showed that Tyler paid kickbacks to a recruiter named Birdie Leroy Revis in exchange for beneficiary information and false prescriptions issued by Revis’ cousin, Dr. John Perry. Many of the beneficiaries testified that they did not know Perry and had never been treated by him. Revis was convicted of illegally receiving kickbacks, while Perry was convicted of conspiracy to commit health care fraud in separate cases.
In addition, the evidence showed Tyler conducted a monetary transaction in criminally derived proceeds when he withdrew approximately $140,000 from Wachovia Bank. The monies were proven to be the proceeds of the health care fraud conspiracy.Tyler faces up to five years in prison for the conspiracy as well as up to 10 years for each count of health care fraud and money laundering in addition to substantial fines.
The case was the result of a joint investigative effort of the FBI, the Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services - Office of Inspector General, Office of Investigations and the U.S. Attorney’s Office. Special Assistant United States Attorneys Suzanne Bradley and Adrienne E. Frazior prosecuted the case.
Jonesboro Man Pleads Guilty to Fraudulently Obtaining FEMA GrantsRead the Press Release
SHREVEPORT, La.–United States Attorney Stephanie A. Finley announced today that Curtis Roller, 57, of Jonesboro, La., pleaded guilty before U.S. District Judge Donald E. Walter to three counts of wire fraud after illegally obtaining Federal Emergency Management Agency (FEMA) grants and making false statements on workers compensation forms.
According to evidence presented in the indictment and the guilty plea hearing, from Jan. 1, 2002 to Dec. 31, 2010, Roller submitted false information on grant applications he sent to FEMA so that fire departments in Louisiana and Arkansas were eligible to receive federal funds, which could be used to purchase equipment from his company, Louisiana Firefighting Services. Roller is accused of inflating population data, agency coverage areas and numbers of responded calls on the FEMA grant applications. He also is accused of overstating the type of calls responded to, under-reporting the size of budgets and increasing the scope of their needs on the applications. It is against FEMA rules and policies for a grant writer to financially benefit from money awarded.
Roller faces a maximum penalty of 20 years in prison, five years of supervised release, a $250,000 fine and restitution for each count of wire fraud. Sentencing was set for September 18, 2014.
The U.S. Department of Homeland Security, U.S. Postal Service/Office of Inspector General, and the U.S. Department of Labor/Office of Inspector General conducted the investigation. Assistant U.S. Attorney Earl Campbell is prosecuting the case.
Independence Man Pleads Guilty to Distributing and Possessing Child PornographyRead the Press Release
A man who distributed and possessed child pornography pled guilty on May 9, 2014, in federal court in Cedar Rapids.
Steven Risk, age 38, from Independence, Iowa, was convicted of one count of distribution of child pornography and one count of possession of child pornography.
At the plea hearing, Risk admitted that, between June 2011 and February 2013, he distributed child pornography. He also admitted that, between October 2012 and February 2013, he possessed child pornography, including depictions of prepubescent children.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Risk remains in custody of the United States Marshal pending sentencing. Risk faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $500,000 fine, a $200 special assessment, and supervised release for 5 years to life following his imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, Homeland Security Investigations, and the Federal Bureau of Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 14-2010.
Illinois Man Sentenced to Prison for Selling Peptides, HGH from China over the InternetRead the Press Release
PITTSBURGH - A resident of Norridge, Ill., has been sentenced in federal court to 27 months imprisonment on his conviction of mail fraud, distribution of human growth hormone and money laundering, United States Attorney David J. Hickton announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Ronald J. DeFranco, 54.
According to information presented to the court, DeFranco maintained a website for the illegal distribution of peptides - chemical compounds which require a prescription for dispensation, but which are illegitimately sought by body builders for muscle enhancement. DeFranco deceived the Internet service provider and the FDA by falsely representing on the website that he was selling these substances "for research purposes only . . . not for human consumption." In addition to sales of peptides, DeFranco also allegedly sold human growth hormone (HGH) without the required physician's prescriptions. During the period from May 2010, until January 2011, DeFranco allegedly paid $94,777.40 in Western Union and bank wire transfers to acquire these substances from suppliers in the Peoples Republic of China.
Prior to imposing sentence, Judge Ambrose stated that she was denying the defendant’s downward variance request due to the serious nature of the offense and because his prior sentence of imprisonment “speaks volumes about [his] ability to conform [his] behavior to the law.”
Assistant United States Attorney Leo M. Dillon prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the FDA Office of Criminal Investigations, IRS - Criminal Investigation and the DEA for the investigation leading to the successful prosecution of DeFranco.
Hollywood Man Pleads Guilty in Million Dollar Identity Theft Tax Refund FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Judes Celestin, 36, of Hollywood, pled guilty for his role in an identity theft tax refund scheme that resulted in the receipt of approximately $1 million in fraudulent tax refunds. Sentencing is scheduled for August 13, 2014 at 8:30 a.m. before U.S. District Judge Robert N. Scola.
Celestin pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. At sentencing, Celestin faces a maximum term of 22 years in prison.
According to the plea documents, Celestin set up two Florida corporations – JC Easy Tax, Inc. (“JC Easy Tax”) and Tax Filing Made Easy! (“Tax Filing Made Easy”) – and listed himself as president. He opened and controlled bank accounts for these two corporations at various banks in South Florida. Celestin caused false and fraudulent individual income tax returns to be filed with the Internal Revenue Service in the names of individuals without those individuals’ knowledge or authority. The defendant caused approximately one million dollars in tax refund monies to be direct deposited to bank accounts for JC Easy Tax and Tax Filing Made Easy. Celestin then withdrew this money for his own personal use and benefit.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
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.
Guilty Plea Entered by Final Defendant Charged in Augusta, Georgia Sex Trafficking RingRead the Press Release
Five defendants have now pled guilty to charges arising out of
Sex Trafficking of a Minor InvestigationAUGUSTA, GA – William Warren Hart, 35, of Hephzibah, Georgia, pled guilty last week before Senior United States District Court Judge Dudley H. Bowen, Jr. for his role in a sex trafficking organization which operated in Augusta, Georgia, in 2013. Hart, who faces up to five years in prison for his limited role in the sex trafficking organization, pled guilty to Using a Facility of Interstate Commerce to Facilitate the Carrying on of a Business Involving Prostitution. The other four Defendants charged include:
Charles Henry Castillo, a/k/a “Joe King,” 32, of Augusta, Georgia, Allison Jontil Barnes, a/k/a “Jah” and “Shantae Davis,” 29, of Augusta, Georgia, Shelica Daniels, a/k/a “Red,” 27, of Augusta, Georgia, and, Heather Leigh Hedrick, 30, of Augusta, Georgia.
Each of these four Defendants pled guilty previously to Conspiring to Engage in the Sex Trafficking of a Minor. The charge carries a possible sentence of life imprisonment. A sentencing date has not yet been scheduled.
United States Attorney Edward Tarver stated, “Georgia’s children are at risk and continue to be vulnerable to exploitation. More collaborative efforts and faster responses by law enforcement agencies are needed to protect our children. The aggressive prosecution of individuals like these Defendants will continue to be a priority for the Department of Justice and this United States Attorney’s Office.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, said, “The Defendants in this case clearly illustrate the need for law enforcement, working within the community, to protect our youth who remain vulnerable to those who would prey on them. The FBI will continue to provide significant investigative resources toward investigations that focus on juvenile sex trafficking within Georgia.”
According to evidence presented during several guilty plea hearings, Daniels, in the summer of 2013, encouraged a 16-year-old girl to leave home and begin working for and with Daniels as a prostitute. Daniels placed ads on Backpage.com using a pseudonym for the victim to facilitate the criminal conduct. Soon afterwards, Barnes, who met the victim through Daniels, encouraged the victim to begin working for Barnes in the same way. Ultimately, the two met up with Castillo, who assumed a leadership role in the operation. Castillo enlisted the assistance of Hedrick and Barnes in preparing images and videos of the minor to be used to advertise her availability for prostitution. Hart assisted Barnes in posting some of those advertisements on Backpage.com.
On August 26, 2013, the FBI received a tip from the National Center for Missing and Exploited Children that a juvenile’s images were being posted on Backpage.com for prostitution services. Through an undercover operation conducted that same day, agents and officers with the FBI’s Computer Crime Child Exploitation (CCCX) Task Force identified and arrested Castillo, Hedrick, and Barnes, and rescued the 16-year-old victim at Castillo’s apartment.
This prosecution was the result of a joint investigation of the FBI’s CCCX Task Force, made up of Augusta-area FBI agents; the Georgia Bureau of Investigation; Richmond County Sheriff’s Office; and the Columbia County Sheriff’s Office. This case was brought as part of Project Safe Childhood, which is a nationwide U. S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
Assistant United States Attorneys Patricia Rhodes and Nancy Greenwood, Deputy Criminal Chief in the Augusta U. S. Attorney’s Branch Office and Project Safe Childhood Coordinator, prosecuted 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.Goose Creek Man Sentenced for Interstate Transportation of Stolen GoodsRead the Press Release
Contact Person: Rhett DeHart (843) 727-4381
Columbia, South Carolina ----- United States Attorney Bill Nettles stated today that Eugene Jones, age 60, was sentenced in federal court in Charleston, South Carolina, for Conspiracy to Transport Stolen Goods in Interstate Commerce, a violation of 18 U.S.C. §§ 371 and 2314. United States District Judge David C. Norton of Charleston sentenced Jones to 36 months imprisonment and 3 years supervised release.
Evidence presented in this case establ ished that from at least 2007 through 2012, Eugene Jones led a conspiracy to transport stolen goods in interstate commerce via the Internet. It was part of the conspiracy thatJones owned and operated Patriot Pawn in North Charleston, S.C. Jonesrecruited dozens of persons to steal merchandise from retail stores including Lowes, Target, Wal-Mart, Home Depot, Belk, K-Mart, Bed Bath and Beyond, and Best Buy. Jones suggested to his co-conspirators to steal specific merchandise, including computer software, calculators, tool kits, electronic devices, and kitchen appliances.
After stealing goods from area stores,the co-conspiratorstook the stolen goods to Patriot Pawn, where Jones and his employeesbought the stolen goods for far less than retail value, knowing the goods were stolen or obtained by fraud. Jones,with the assistance ofothers, sold the stolen goods on eBay, an Internet auction and shopping site.
Jones sold the stolen goods in transported in interstate commerce from South Carolina to buyers in other States, including Texas, Florida, Pennsylvania, Minnesota, and California. During the conspiracy, approximately $1 million in stolen goods were sold on eBay and transported in interstate commerce, and Jones divided these illegal proceeds between himself and his co-conspirators.
The case was investigated by agents of the Secret Service and the North Charleston Police Departure. Assistant United States Attorney Rhett DeHart of the Charleston office prosecuted the case.Former Virginia Department of Social Services Employee Sentenced for Preparing False Tax Returns and Stealing IdentitiesRead the Press Release
Sybil Marshall Coles, 45, of Pamplin, Virginia, was sentenced today to serve five years in prisonfor aggravated identity theft and preparing a false tax return, announced Assistant Attorney General Kathryn Keneally for the Tax Division, U.S. Attorney Dana J. Boente for the Eastern District of Virginia and Attorney General of Virginia Mark R. Herring. On Jan. 28, 2014, Coles pleaded guilty to a two count criminal information. Coles was also ordered to one year of supervised release and to pay $949,273 in restitution.
According to court documents and evidence from her sentencing, Coles was an employee at the Virginia Department of Social Services in Nottoway County. From both her work and personal computers, Coles prepared and filed at least 222 false federal income tax returns claiming false refunds based on fictitious itemized deduction expenses and fictitious Schedule C businesses that reported losses, among other items, which resulted in a tax loss to the U.S. Treasury of at least $949,000. Coles also prepared and filed false Commonwealth of Virginia tax returns.
According to court documents, Coles used family members and friends to recruit individuals for whom she prepared tax returns. She also prepared returns for herself, family members, friends and colleagues. Coles used bank accounts in the name of another family member to conceal the activities and proceeds of the false return scheme. As part of the scheme, Coles stole identities of taxpayers for whom she had prepared returns and used their information on other returns to claim fictitious childcare expenses. In addition, after the criminal investigation began, Coles asked certain individuals to tell Internal Revenue Service (IRS) investigators that someone else prepared their tax returns.
The case was prosecuted by Tax Division Trial Attorney and Special Assistant U.S. Attorney Rebecca Perlmutter and Assistant Attorney General and Special Assistant U.S. Attorney Michael Jagels. IRS-Criminal Investigation in Richmond, Virginia, investigated the case.
Former Qualcomm Directors Indicted for Insider Trading Derek Cohen and Robert Herman Bought More Than $500,000 in Securities of Atheros Communications, Inc. Just One Day Before Qualcomm Officially Announced Its Acquisition of That CompanyRead the Press Release
San Diego, CA – Two former Qualcomm sales directors have been charged with four counts of insider trading in an indictment unsealed today.
According to the indictment, Derek Montague Cohen and Robert William Herman were both directors of Qualcomm’s North America Sales Department. In addition to their day jobs, they were also part of an informal stock trading group, sharing tips and opinions about the stock market. According to the indictment, while still employed by Qualcomm, Cohen and Herman learned that Qualcomm (QCOM) was about to acquire Atheros Communications, Inc. (ATHR), then a publicly traded technology company headquartered in California. Based on this inside information—and just one day before Qualcomm officially announced the acquisition—Cohen and Herman placed more than $500,000 in trades on various Atheros securities, including stocks purchases and option contracts. At the same time, Cohen allegedly covered a short position that he maintained, in violation of company policy, on Qualcomm stock.
Shortly after Cohen and Herman placed their trades, the New York Times’ DealBook blog leaked news of the impending acquisition, causing shares of Atheros to dramatically increase in value. Cohen and Herman then sold their securities, realizing a total profit of nearly $230,000. The indictment alleges that Cohen and Herman later falsely claimed to in-house Qualcomm lawyers and staff that they had only traded after reading a leaked news item—even though trading records, combined with records of the New York Times Company, show that this was impossible.
United States Attorney Laura E. Duffy said: “Insider trading is a threat to public companies and investors alike. This indictment should send a message throughout Southern California and beyond: the Department of Justice will not tolerate the manipulation of the securities markets for cynical and selfish personal gain.”
In a parallel action, the Securities and Exchange Commission today announced civil insider trading charges against Cohen and Herman.
Michele Wein Layne, director of SEC’s Los Angeles Regional Office, said: “As alleged in our complaint, Qualcomm placed trust in these sales managers who proceeded to exploit the confidential information shared with them and conduct insider trading for their personal gain.”
Cohen was arrested Saturday at Los Angeles International Airport at the request of the Federal Bureau of Investigation after he returned from an overseas visit to the Philippines. Herman remains at large.
Cohen was arraigned on the indictment in federal court in Los Angeles this afternoon; he entered a not-guilty plea, and was to be released on a $100,000 bond. He is scheduled to appear before U.S. Magistrate Judge Ruben B. Brooks in San Diego on May 14, 2014 at 10:30 a.m., for a status hearing.
DEFENDANT Case Number: 14CR1202-JLS Derek Montague Cohen Age: 52 San Diego, CARobert William Herman
Age: 52 San Diego, CA CHARGESCounts 1-4: Securities Fraud – 15 U.S.C. §§ 78j(b) and 78ff. Maximum penalties: 20 years in prison, 3 years of supervised release, $3 million fine and a $100 special assessment for each count.
INVESTIGATING AGENCYFederal Bureau of Investigation
*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Former Office Manager Pleads Guilty to Forgery and Signing a False Tax ReturnRead the Press Release
Oklahoma City, Oklahoma – ERIN MARIE WELLS, of Yukon, Oklahoma, pled guilty today to check forgery and signing a false federal income tax return, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
From 2009 until mid-2013, Wells was employed as the office manager of Advanced Electric, located in Oklahoma City. She was responsible for paying the company’s bills, depositing checks into the company bank account, and maintaining the company’s books and records. Today she pled guilty to forging the signature of the company’s owner on a $1,500 check and using the proceeds for her personal benefit. In a plea agreement, she has agreed to pay restitution to the company in the amount of $256,857.76.
In addition to pleading guilty to forgery, Wells has pled guilty to signing a false tax return. She admitted that on January 11, 2013, she signed a personal federal tax return for the 2012 calendar year that she knew was false because it reported only $28,386 in total income, substantially less than the income she actually received.
As a result of her conviction for forgery, Wells faces up to 10 years in prison, three years of supervised release, a $250,000 fine, and mandatory restitution. With respect to the tax conviction, she faces up to three years in prison, one year of supervised release, and a $250,000 fine. Sentencing will take place in approximately 90 days. Reference is made to the information and other public filings for further information.
This case is the result of an investigation by the Internal Revenue Service Criminal Investigations, and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Scott E. Williams.
Former New York Tax Liens Investment Company Executive Pleads Guilty for Role in Bid Rigging Scheme at Municipal Tax Lien AuctionsRead the Press Release
A former New York-based tax liens company executive pleaded guilty today for his role in a conspiracy to rig bids at auctions conducted by New Jersey municipalities for the sale of tax liens, the Department of Justice announced.
Vinaya K. Jessani, of New York City, entered a guilty plea in the U.S. District Court for the District of New Jersey in Newark to felony charges filed today. Under the plea agreement, Jessani has agreed to cooperate with the department’s ongoing investigation.
According to the charge, from at least as early as 1994 until as late as February 2009, Jessani, a former senior vice president who supervised the purchasing of municipal tax liens at auctions in New Jersey for the company he worked for, participated in a conspiracy to rig bids at auctions for the sale of municipal tax liens in New Jersey by agreeing to, and instructing others to, allocate among certain bidders which liens each would bid on. The department said that Jessani and those under his supervision submitted bids in accordance with the agreements and purchased tax liens at collusive and non-competitive interest rates.
“Today’s guilty plea demonstrates the Antitrust Division’s continuing effort to prosecute those who manipulate the competitive process in order to harm home and property owners,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “The division will continue to be vigilant in rooting out conspiracies that harm already distressed property owners.”
The department said that the primary purpose of the conspiracy was to suppress and restrain competition in order to obtain selected municipal tax liens offered at public auctions at non-competitive interest rates. When the owner of real property fails to pay taxes on that property, the municipality in which the property is located may attach a lien for the amount of the unpaid taxes. If the taxes remain unpaid after a waiting period, the lien may be sold at auction. New Jersey state law requires that investors bid on the interest rate delinquent property owners will pay upon redemption. By law, the bid opens at 18 percent interest and, through a competitive bidding process, can be driven down to zero percent. If a lien remains unpaid after a certain period of time, the investor who purchased the lien may begin foreclosure proceedings against the property to which the lien is attached.
According to court documents, the conspiracy permitted the conspirators to purchase tax liens with limited competition and each conspirator was able to obtain liens which earned a higher interest rate. Property owners were therefore made to pay higher interest on their tax debts than they would have paid had their liens been purchased in open and honest competition, the department said.
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act violation may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than the $1 million statutory maximum.Today’s plea is the 15th guilty plea resulting from an ongoing investigation into bid rigging or fraud related to municipal tax lien auctions. Including Jessani, 12 individuals and three companies have pleaded guilty. Additionally, four individuals and two entities have been indicted for their roles in the conspiracy to rig bids at tax lien auctions.
Today’s case was done in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
This ongoing investigation is being conducted by the Antitrust Division’s New York Office and the FBI’s Atlantic City, N.J., office. Anyone with information concerning bid rigging or fraud related to municipal tax lien auctions should contact the Antitrust Division’s New York Office at 212-335-8000, visit www.justice.gov/atr/contact/newcase.htm or contact the Atlantic City Resident Agency of the FBI at 609-677-6400.Former KC Attorney Pleads Guilty to Money LaunderingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Kansas City, Mo., attorney pleaded guilty in federal court today to money laundering.
James C. Wirken, 69, of Kansas City, waived his right to a grand jury and pleaded guilty before U.S. District Judge Fernando J. Gaitan to a federal information that charges him with one count of money laundering.
Wirken was a lawyer and principal at The Wirken Law Group until he was disbarred by the Missouri Supreme Court in 2012.
By pleading guilty today, Wirken admitted that he withdrew money from his law firm’s trust account, which was being held for the benefit of a client, and deposited the funds into his law firm’s operating account. Wirken then used the funds for his personal benefit. All of the transactions were conducted without the client’s consent.
Wirken wrote six checks between December 2009 and Jan. 13, 2010, totaling $116,730.
Today’s plea agreement cites the specific incident in which Wirken transferred $51,000 into the law firm’s operating account, then directed an employee to purchase a $50,000 cashier’s check from that account. The $50,000 cashier’s check was to repay a loan that another client had made to Wirken, which had been in default since Oct. 2, 2008.
Under federal statutes, Wirken is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000 (or not more than twice the amount of the criminally derived property) and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Roseann A. Ketchmark. It was investigated by IRS-Criminal Investigation.Former Health Care Center Nursing Supervisor Indicted for Selling Hydrocodone and other Pain KillersRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul announced today a federal grand jury handed down a four-count indictment charging Catherine Vitello, 41, of Elma, N.Y., with possession with intent to distribute and distribution of hydrocodone, fentanyl and alprazolam, and maintaining a drug involved premises. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney John M. Alsup, who is handling the case, stated that the defendant was the Director of Nursing at the St. Catherine Laboure Health Care Center in Buffalo. According to the indictment, Vitello sold un-used prescription drugs from her office. These controlled substances included hydrocodone, fentanyl, and alprazolam. On three separate occasions in October 2013, the defendant sold hydrocodone, fentanyl and alprazolam to a confidential source working with the Drug Enforcement Administration.
The indictment is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of James J. Hunt, Acting Special Agent in Charge, New York Field Office, the Lackawanna Police Department, under the direction of Chief James Michel, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Former Employee of Day Treatment Program Found Guilty of Criminal Abuse of A Vulnerable AdultDefendant Made Malicious Statements Toward Person in Her CareRead the Press Release
WASHINGTON - Ivy Fauntroy, 34, a former employee of United Cerebral Palsy of Washington & Northern Virginia, a District of Columbia day services provider for individuals with developmental disabilities, has been found guilty and been sentenced for criminal abuse of a vulnerable person in her care, U.S. Attorney Ronald C. Machen, Jr. and District of Columbia Inspector General Charles J. Willoughby announced today.
Fauntroy, of Washington, D.C., was found guilty on May 8, 2014, of one count of criminal abuse of a vulnerable adult. The Honorable Yvonne M. Williams found her guilty following a trial in the Superior Court of the District of Columbia. Judge Williams sentenced Fauntroy on the day of her verdict to a 60-day jail term, but suspended the time provided that Fauntroy successfully completes nine months of probation.
According to the government’s evidence, on Jan. 4, 2013, the adult victim attended a day treatment program for developmentally disabled persons operated by United Cerebral Palsy in Northeast Washington. On that day, Fauntroy repeatedly made malicious statements toward the victim, directing her to “roll over” and “play dead.” Fauntroy directed the attention of her co-workers to this abuse, while capturing video footage of the incident on her cell phone. This video clip was subsequently used by the government in its prosecution of the case.
In announcing the conviction and sentence, U.S. Attorney Machen and Inspector General Willoughby praised the work of Investigator Eduardo Torre of the Office of the Inspector General Medicaid Fraud Control Unit (MFCU), who handled the investigation. They also commended the work of Special Assistant U.S. Attorney Adrienne Rose and Special Assistant U.S. Attorney Brent Wolfingbarger of the MFCU, who jointly prosecuted the case, as well as Assistant U.S. Attorney Lindsey Merikas, who worked on the matter prior to trial.
14-111Former Deputy Admits to Money LaunderingRead the Press Release
McALLEN, Texas - Robert Ricardo Maldonado, 49, of Weslaco, has entered a plea of guilty to one count of conspiracy to commit money laundering, announced U.S. Attorney Kenneth Magidson. Maldonado was a former deputy with the Hidalgo County Sheriff’s Office.
From 2001 to November 2013, Maldonado transported currency derived from the distribution of narcotics from various destinations including Detroit, Chicago, Birmingham and elsewhere to the Rio Grande Valley. Maldonado was a paid a percentage of the total amount of the currency transported. He then utilized these funds to purchase various properties and assets.
U.S. District Judge Randy Crane, who accepted the guilty plea, has set sentencing for July 21, 2014. At that time, Maldonado faces up to 20 years in prison along with a potential fine up to $500,000 or twice the amount of the proceeds.
The investigation leading to the charges was conducted by the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation and Texas Department of Public Safety. Assistant United States Attorney James Sturgis prosecuting the case.
Former Chelsea Housing Authority Executive Pleads GuiltyRead the Press Release
BOSTON – The former Executive Director of Chelsea Housing Authority (CHA) pleaded guilty today for rigging the inspection process for federally-funded housing units at the CHA.
Michael McLaughlin, 68, pleaded guilty today before U.S. District Court Judge Douglas P. Woodlock to conspiring to defraud the United States. In October 2013, McLaughlin was indicted along with two co-defendants who are pending trial. Sentencing is scheduled for June 20, 2014 at 2:30 p.m.
From 2000 until November 2011, McLaughlin was the Executive Director of the Chelsea Housing Authority, which managed three federal housing developments funded by the Department of Housing and Urban Development (HUD) and contained approximately 350 units. Between 2007 and 2011, McLaughlin conspired with his co-defendants to defeat the purpose and efficacy of HUD inspections of the Chelsea Housing Authority's living spaces. They did this by obtaining in advance the list of units that HUD was going to inspect, enabling the housing authority to focus on repairing those units and to deceive the HUD inspectors about the integrity of the unit inspection.
In July 2013, McLaughlin was sentenced to 36 months in prison for falsely reporting his salary in annual budgets required by HUD.
McLaughlin pleaded guilty pursuant to a plea agreement with the United States. If the Court accepts McLaughlin’s guilty plea, he will be sentenced to one year in prison, to be served consecutively with the prison term he is currently serving, and a $3,000 fine.
United States Attorney Carmen M. Ortiz and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office, made the announcement today. The case is being prosecuted by S. Theodore Merritt of Ortiz’s Public Corruption Unit and Brian Pérez-Daple of Ortiz’s Major Crimes Unit.
FBI Agents Honored at U.S. Attorney AwardsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Three agents from the Federal Bureau of
Investigation were recognized for their outstanding work in investigations involving two former West Virginia sheriffs and a woman who embezzled over a million dollars from a race track.United States Attorney William J. Ihlenfeld, II, recognized three FBI agents at the U.S. Attorney’s Award ceremony held in Wheeling. FBI Special Agent Dave Rauser was honored for his work in exposing the civil rights violations committed by former Jefferson County (WV) Sheriff Bobby Shirley that led to Shirley’s resignation, conviction, and prison sentence.
FBI Special Agent Frederick Aldridge was honored for his investigation of former Barbour County Sherriff John Hawkins, who resigned and recently pleaded guilty to charges related to the filing of a false insurance claim. Hawkins is free on bond pending a sentencing hearing.
FBI Special Agent Lawrence Quigley was recognized for his work in exposing the crimes of Anita Ambler, the former bookkeeper at the Mountaineer Racetrack who was convicted by a federal jury trial last year on 11 counts of mail fraud, 10 counts of wire fraud, and four counts of transacting in criminal proceeds. The evidence at trial showed that Ambler was involved in the theft of over $1.3 million from an account that was being maintained by Mountaineer Race Track and Casino on behalf of the Horsemen’s Association. Ambler presently is serving an 87 month prison sentence.
Other recipients of awards include:
- Retired DEA Special Agent Robert L. Manchas, U.S. Attorney Award for Distinguished Service; - Greater Harrison County (WV) Drug Task Force, U.S. Attorney Award for the investigation of “Hot Stuff, Cool Things”, a synthetic drug retailer from Clarksburg; - Hancock-Brooke-Weirton Drug Task Force, a U.S. Attorney Award for its investigation of a drug trafficking organization from Chicago; - West Virginia State Police Sgt. Matthew S. Adams, U.S. Attorney Award for investigation of Michael John Jones, who was convicted of “Sexual Exploitation of a Child”, sentenced to 25 years in federal prison, and is now facing charges in state court in Brooke County for similar conduct; - ATF Special Agent Ken Grace, U.S. Attorney Award for the investigation of the thefts of firearms from the Stonewood, West Virginia police department; and
- IRS-CI Agent Jeff James, IRS Agent Danielle McWatters, & HHS Agent Mary Ann Withrow, U.S. Attorney Awards for their inquiry into Dr. Allen Saoud, who was convicted at trial for scheming to circumvent Medicare and Medicaid, bankruptcy fraud, lying to a federal agent, aggravated identify theft, and obstruction of internal revenue laws by filing false income tax returns.The ceremony included remarks from U.S. District Court Judge Frederick P.
Stamp, Jr. and the presence of many local, state and federal law enforcement leaders from throughout West Virginia.
The individuals included in the photo are U. S. Attorney William J. Ihlenfeld, II; Special Agent Quigley; Special Agent Rauser; Special Agent Aldridge; and Special Agent in Charge Scott Smith.Elkins Teen Wins U.S. Attorney Award for CourageRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA – An Elkins teen who lost his right leg just days prior to his sixteenth birthday was recognized for his courage and resilience in a special ceremony held in Wheeling.
Tanner Boatwright was presented with the United States Attorney’s Award for Courage as a result of his response to the tragic hunting accident that occurred in November of 2011. The incident, which led to the conviction of a West Virginia man for being a felon in possession of a firearm, led to Boatwright receiving a prosthetic leg. Boatwright was honored for the bravery he has shown since it occurred.
“Tanner stared trauma and tragedy in the face and didn’t blink,” said U.S. Attorney Ihlenfeld. “He could have curled up into a ball, stayed in his room, and never come out, and no one would have questioned it. But instead has embraced this change in his life, and he now does things that he never would have done before the incident.”
Boatwright now hunts and fishes, drives without restrictions, snowboards, swims, and rock climbs. He won four gold medals at the Endeavor Games in Oklahoma, and recently worked on the Twentieth Century Fox movie "The Fault in Our Stars." The movie is scheduled to come out later this year and is based upon the best-selling book by John Green.
Tanner plans to become a prosthetic practitioner upon his completion of college.
Tanner’s father, Roger Boatwright, was also recognized during this week’s ceremony. Ihlenfeld presented Roger Boatwright with a special award for his efforts to save his son’s life on the night that Tanner was shot.
The individuals included in the photo are U. S. Attorney William J. Ihlenfeld, II; Susie Boatwright; Roger Boatwright; and Tanner Boatwright.Dispositions for Kern County and Fresno County Marijuana CasesRead the Press Release
FRESNO, Calif. — Noe Alvarez Ramirez, 28, of Michoacàn, Mexico, was sentenced today to two years and nine months in prison, and Rudy Alberto Gonzalez Rocha, 28, and his brother, Eloy Damian Gonzalez Rocha, 32, both of Jalisco, Mexico, entered guilty pleas to being aliens in possession of firearms seized from a marijuana cultivation site, according to U.S. Attorney Benjamin B. Wagner.
7,302 Marijuana Plants Seized from Sequoia National Forest (No. 1:13-cr-172 AWI)
Alvarez was sentenced following his guilty plea in March to conspiring to manufacture, distribute, and possess with intent to distribute marijuana grown in the Gibboney Canyon area of the Sequoia National Forest in Kern County. The area is also within the federally designated Domeland Wilderness area. According to court documents, U.S. Forest Service agents seized 7,302 marijuana plants from the site and found 5,000 marijuana plant stalks consistent with a prior harvest in 2012. During the execution of a federal search warrant at the site, agents found Alvarez sleeping in a tent. Alvarez was also ordered to pay $2,675 in restitution to the U.S. Forest Service caused by the negative environmental impact of the cultivation. Trash and fertilizer bags were scattered about the area and the ground was terraced after native vegetation, including oak trees, was cut down to make room for the marijuana plants. Trash also was found in the waterway of Gibboney Creek. Alvarez is subject to potential deportation to Mexico after he serves any prison sentence.
This case was investigated by the U.S. Forest Service, U.S. Drug Enforcement Administration, California Department of Fish and Wildlife, and the Kern County Sheriff’s Office.
Firearms Seized from Fresno County Grow (1:14-cr-39 AWI)
The Gonzalez brothers entered guilty pleas to being illegal aliens in possession of three firearms, one of which was reported stolen from Arkansas and another having an obliterated serial number. The guns were found during the execution of a narcotics search warrant at the men’s leased residence in Dunlap, Calif. According to court documents, at the beginning of this year, Fresno County Sheriff deputies had been dispatched to the property to investigate several calls about people coming and going to and from the property, which had a strong odor of marijuana. Deputies seized 260 marijuana plants, more than 200 pounds of processed marijuana, and $17,120 in cash, along with the firearms. The defendants have agreed to the forfeiture of the money and guns.This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Fresno County Sheriff’s Office, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The Gonzalez brothers are scheduled for sentencing on August 4, 2014. They face a maximum prison term of 10 years and a $250,000 fine. Their actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Assistant U.S. Attorney Karen A. Escobar is prosecuting the above cases.
Detroit Man Pleads Guilty to Distributing HeroinRead the Press Release
Huntington, W.Va. – A Detroit man who was part of a heroin conspiracy in the Huntington area, pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Daniel M. Flowers, 43, pleaded guilty before Chief United States District Judge Robert C. Chambers in Huntington to distributing heroin.
Between August of 2008 and April of 2013, Flowers and his co-conspirators, some of whom transported the heroin from Detroit to Huntington, utilized multiple residences in the Huntington area to store, prepare and distribute heroin. On April 10, 2013, a confidential informant contacted Flowers and arranged to buy some heroin. The informant subsequently met with Flowers at an apartment in the 1000 block of 12th Avenue in Huntington, where Flowers sold the heroin to the informant $150.
Flowers faces up to 20 years in federal prison when he is sentenced on August 11, 2014.
The FBI Huntington Violent Crimes Drug Task Force and the Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of 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 and heroin. 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 and heroin in communities across the Southern District.
Defendants Sentenced for Robbing Marston, NC, Post OfficeRead the Press Release
Five subjects sentenced in Greensboro on federal robbery and firearm offenses
GREENSBORO, N.C. – United States Attorney Ripley Rand announced today that Matthew James Owens, Dennis Shaquille Ross, Brandon Letrell McCain, Takai Terrell Roe and Antonio Chrishawn Jones were sentenced in federal court for their involvement in the June 5, 2013, armed robbery of the Marston, NC, Post Office.
Dennis Shaquille Ross, Brandon Letrell McCain, and Takai Terrell Roe each entered the post office and joined in robbing the Post Office with the use of a firearm. Ross, McCain and Roe each pleaded guilty to interference with commerce by robbery and carrying and using a firearm during and in relation to a crime of violence. Ross received a total prison sentence of 155 months; McCain received a total prison sentence of 91 months; and Roe received a total prison sentence of 87 months. Ross received a five-year term of supervised release following his release from confinement, and McCain and Roe each received a three-year terms of supervised release following their release from confinement.
Matthew James Owens and Antonio Chrishawn Jones were involved in the robbery but did not actually enter the post office. Owens pleaded guilty to interference with commerce by robbery and received a 120 month prison sentence. Jones also pleaded guilty to interference with commerce by robbery received a 52 month prison sentence. Owens received a five-year term of supervised release following his release from confinement and Jones received a three-year term of supervised release following his release from confinement.
All five defendants were ordered to pay $1,389.29 in restitution.
The case was primarily investigated by the United States Postal Inspection Service and the Richmond County Sheriff’s Office. Other agencies assisting with the investigation included the North Carolina State Highway Patrol, the Rockingham Police Department, the North Carolina State Bureau of Investigation, the Moore County Sheriff’s Office and the Scotland County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Cliff Barrett.
Davenport Man Sentenced to Three Years of Imprisonment for Possession of Child PornographyRead the Press Release
DAVENPORT, IA – On May 12, 2014, Charles Louis Linville, age 71, of Davenport, Iowa, was sentenced to 36 months of imprisonment for possession of child pornography, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge John A. Jarvey also sentenced Linville to a five-year term of supervised release, following his term of imprisonment.
Linville was identified during a peer-to-peer file sharing investigation. Law enforcement executed a search warrant at Linville’s address, seized his computer, and determined that Linville possessed thousands of images of child pornography. Linville also possessed multiple digital recording devices, including video capable underwater face masks, which he had used to create videos of a minor female swimming in her bathing suit.
This case was investigated by the Scott County Sherriff’s Office and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Cobb County Man Sentenced for Distributing Child PornographyRead the Press Release
ATLANTA – Corey Charles Plunkett has been sentenced to 12 years in federal prison for distributing a pornographic image of his one-year-old daughter to an undercover law enforcement officer.
“Distribution of child pornography is in and of itself a heinous crime,” said United States Attorney Sally Quillian Yates. “This case is all the more disturbing because the victim was the defendant’s one-year-old daughter. We will continue to aggressively prosecute those who exploit our children.”
“J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI has, for many years, not only investigated those who would sexually exploit children, but has also helped to educate the public and parents on how to better protect their children. To see a case, such as this, where the child’s father was sexually exploiting his own child leaves many of our seasoned investigators without words.”
According to United States Attorney Yates, the criminal indictment, and information presented in court: On September 26, 2013, a law enforcement officer in Ohio was engaged in an undercover investigation identifying subjects involved in the on-line victimization of children using two chat rooms known for attracting individuals with a sexual interest in children. He was contacted by a subject later identified as Corey Charles Plunkett. Plunkett wrote that he had a one year old daughter and asked whether a one year old was too young for sexual activity. He also stated that he wanted his daughter to perform oral sex. Shortly thereafter, Plunkett sent an image of himself, a non-pornographic image of his daughter, and later that day a pornographic image of his daughter to the undercover officer. During the execution of a search warrant at the defendant’s home in Cobb County, Ga., police seized Plunkett’s phone and located the image that Plunkett had sent to the undercover officer.
Plunkett, 27, of Marietta, Ga., was sentenced by United States District Judge Steve C. Jones to 12 years in prison to be followed by supervised release for life. He was also ordered to pay a $100 special assessment. The defendant will be required to register as a sex offender when he is released from prison.
This case was investigated by the Federal Bureau of Investigation and the Cobb County Police Department.
This case is being brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals who sexually exploit children and to identify and rescue victims.
Assistant United States Attorney Jill E. Steinberg prosecuted 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 HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Civil Rights Division Highlights Accomplishments and New Records for 2013Read the Press Release
The Department of Justice Civil Rights Division today released its accomplishments report for 2013. This report supplements the division’s first accomplishments report , issued last year, on the division’s work during the first four years of Attorney General Eric Holder’s leadership. In the division’s 57th year, its substantial caseload reflects the persistence of civil rights challenges that create barriers to equality and freedom. But in 2013, the division continued to set new records for numbers of cases and to reach first-of-their-kind agreements in a number of areas. Through its enforcement efforts, the division works to fight discrimination and protect the civil and constitutional rights of people across the country.
The division’s 2013 accomplishments report highlights its work to advance three core principles: expanding opportunity for all, safeguarding the fundamental infrastructure of democracy and protecting the most vulnerable among us.
“Last year, the Civil Rights Division worked to safeguard the most fundamental rights of American democracy, to extend the promise of equality and opportunity, and to advance the cause of justice that has defined this country since its earliest days,” said Attorney General Holder. “I commend the dedicated men and women of the Civil Rights Division for their leadership on these critical efforts. Their work is exemplary and in many cases groundbreaking. It goes to the heart of who we are as a nation and as a people. And that’s why it continues to be a top priority for this Department of Justice: because we are, and will always be, firmly committed to overcoming persistent threats as well as new challenges in order to ensure equal justice under law.”
“Over the course of 2013, the Civil Rights Division continued the impressive track record it initiated during the first four years of Attorney General Holder’s leadership,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “But for all that the division has accomplished, much work remains. The division remains committed to meeting the next generation of civil rights challenges and to combating discrimination in all its forms. We look forward to an even more productive 2014.”
Expanding opportunity for all
The division’s efforts to ensure equal access to education, housing, consumer credit and employment continue to set new records and to pioneer new models for bringing equal opportunity to all. For example, working with the Consumer Finance Protection Bureau, the division reached its largest ever auto lending settlement when Ally Bank and Financial Inc. agreed to pay $98 million for pricing discrimination in its automobile lending practices. The settlement provided $80 million in direct relief to African-American, Hispanic and Asian/Pacific Islander borrowers who were charged higher interest rate markups on auto loans than white borrowers. The division has obtained more than $800 million in monetary relief in fair lending settlements since the unit was founded in 2010.
Ahead of this year’s 60th anniversary of the landmark Supreme Court decision Brown v. Board of Education, in 2013, the division launched new tools and entered into agreements to address racial disparities in education systems across the country. After an investigation into disciplinary practices in the Meridian, Mississippi, public school system, the division found that black students frequently received far harsher disciplinary consequences, including arrests and incarceration, than white students for comparable and often minor misbehavior. The department entered into a landmark settlement with the Meridian school system that will create a discipline system that treats all students equally regardless of race. Also, to help all school districts administer discipline fairly and consistently, the division, along with the Department of Education, issued a groundbreaking joint discipline guidance for schools to prevent and address racial discrimination in school discipline. This guidance, along with its additional technical assistance material, provides important information on the means by which schools can act to dismantle the school-to-prison pipeline.
The division continues its efforts to eliminate unnecessary segregation of persons with disabilities and to ensure that individuals with intellectual and developmental disabilities are given the opportunity to participate fully in their communities, in accordance with the Supreme Court’s decision in Olmstead v. L.C. In 2013, the division investigated Training Thru Placement (TTP), one of the largest facility-based employment service providers in Rhode Island, and a sheltered workshop in a Providence high school. The division found that workers with intellectual and developmental disabilities typically remained at TTP for decades, earning sub-minimum wages, and that the high school workshop acted as a pipeline to TTP. The department’s investigation found that the workers with disabilities at TTP were not in the most integrated setting appropriate for them; rather, they were capable of working in real jobs with supports and participating in activities in the community. The division entered into an interim agreement with the state of Rhode Island and the Providence Public School District regarding TTP and the school-based workshop and expanded its investigation to all state-funded employment and day facilities to address the rights of people with disabilities to receive state employment and daytime services in the broader community, rather than in segregated sheltered workshops and facility-based day programs. Since 2009, the division’s Olmstead enforcement work has helped protect the rights of more than 46,000 people with disabilities.
T he division also continues to aggressively enforce the Uniformed Services Employment and Reemployment Rights Act (USERRA), ensuring that servicemembers returning from active duty are not penalized by their civilian employers. The division’s USERRA program is critically important because USERRA cases typically involve small amounts of back pay; without the division’s help, many servicemembers would not be able to find or afford private attorneys to take their cases. In Forsyth County, North Carolina, for example, the division reached an agreement to vindicate the employment rights of an Army National Guard soldier who was discharged from his job as a sheriff without cause less than a year after completing a deployment to Iraq.
Finally, the division collected a record in civil penalties, nearly $900,000, through its enforcement of the Immigration and Nationality Act (INA), which prohibits citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee, document abuse and retaliation or intimidation. The division also collected more in back pay than in any year in the past 10 years and settled major cases involving discriminatory documentary practices by Macy’s and Centerplate.
Safeguarding the fundamental infrastructure of democracy
In the wake of the Supreme Court’s decision in Shelby County v. Holder, the division continues to use all of the tools still available in the Voting Rights Act (VRA) to ensure that all Americans can cast a ballot free from racial discrimination. In 2013, the department filed three complaints under the VRA to protect the rights of minority voters in Texas and North Carolina to challenge discriminatory voting laws; each of these challenges alleges that these state laws were enacted with discriminatory intent.
The division also expanded its record number of agreements with law enforcement agencies by entering into model agreements with the University of Montana Office of Public Safety and the Missoula Police Department to ensure that police services are delivered without discrimination, that sex crimes are fully and adequately investigated and that victims are treated fairly and with respect after an investigation found systemic failures to protect women victims of sexual assault.
During Fiscal Year 2013, the division’s Courts Language Access Initiative worked with the court systems in 17 states to ensure that individuals are not denied access to important court proceedings because of their national origin and their limited English proficiency. Access to state courts is critically important. Whether cases involve child custody, domestic violence, foreclosure, wage claims or criminal prosecution, the stakes are too high in the courtroom context for parties or witnesses to be effectively excluded from participation.
Protecting the most vulnerable among us
The division prosecutes crimes to ensure protections for some of the most vulnerable populations in the country: those who are abused and trafficked for sex work or labor; those who are attacked out of hate due to the color of their skin, where they worship or who they love. The division and its partners in the U.S. Attorneys’ Offices across the country filed 141 federal criminal civil rights cases, obtaining convictions of 166 defendants, in Fiscal Year 2013 –more than in any previous year in the division’s history.
For example, the division convicted 23 defendants on federal hate crimes charges – building on the division’s record in Fiscal Years 2009-2012, in which the division convicted 74 percent more individuals than in the preceding four years. The division’s Appellate Section also defended the constitutionality of the Matthew Shepard and James Byrd Jr. Hate Crime Prevention Act in court. Through its Human Trafficking Prosecution Unit, the division and its partners in the U.S. Attorneys’ Offices also brought 71 human trafficking cases, the most in the history of the division. The division also brought 53 cases involving sex trafficking, a 55 percent increase over the previous year, and obtained convictions of 90 individuals for trafficking crimes.
The division also works to develop policy and legislative proposals to close the gaps in our nation’s civil rights protections. This year, the division provided technical assistance on numerous legislative initiatives, including the reauthorization of the Violence Against Women Act and the Employment Non-Discrimination Act.
For more information about the Civil Rights Division, visit the division website.
Carlisle Resident Arrested for Child Pornography and Abuse of A ChildRead the Press Release
The United States Attorney’s Office for Middle District of Pennsylvania announced that a Criminal Complaint signed by an agent of the Department of Homeland Security (DHS), Homeland Security Investigations (HSI) was filed United States District Court in Harrisburg on May 9, 2014 against Zackary Adam Knight, Carlisle, Pennsylvania, alleging possession of child pornography and abusive sexual contact with a child under the age of 12.
Knight was taken into custody and today, May 12, appeared before Chief United States Magistrate Judge Martin C. Carlson. After a brief hearing Chief Magistrate Judge Carlson ordered that Knight, age 19, be detained in custody temporarily based on the seriousness of the offenses and the resolution of questions regarding a future fixed address for the defendant. At the time of the arrest, Knight was a resident of housing facilities at the Army War College, Carlisle Barracks.
No date was set for future court hearings.
The ongoing investigation is being conducted by the Department of Homeland Security (DHS), Homeland Security Investigations (HSI) and United States Postal Inspection Service. The case is assigned to Assistant United States Attorney James T. Clancy.
California Cocaine Courier Sentenced to Five Years in PrisonRead the Press Release
Transported 50 Kilograms of Cocaine Worth $1.5 Million
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Sergio Nunez, age 41, of Madera, California, today to five years in prison, followed by five years of supervised release, for possession with intent to distribute cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Howard County Police Chief William McMahon.“This is drug interdiction at its best. Mr. Nunez was caught bringing into Maryland a significant amount of cocaine. The quick and effective cooperation between our domestic offices along with our state and local law enforcement partners put an end to Mr. Nunez’s courier business,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office.”
According to Nunez’s plea agreement, on May 22, 2013, Howard County Police stopped the vehicle Nunez was driving for speeding. Nunez provided his California driver’s license, but was not able to provide registration or proof of rental for the vehicle. A K-9 officer arrived shortly after and the dog alerted for the presence of drugs in the vehicle. A subsequent search of the vehicle recovered two duffel bags, each containing a large number of dark cellophane wrapped bricks. DEA agents secured the bags, which were determined to contain approximately 50 kilograms of cocaine with a street wholesale value of $1.5 million. Nunez admitted that he knew the bags contained cocaine and that he was to be compensated for transporting the drugs.United States Attorney Rod J. Rosenstein praised the DEA and Howard County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys James G. Warwick and Seema Mittal, who prosecuted the case.
Bank Branch Manager Charged with Defrauding CustomersRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced the filing of a Criminal Information in U.S. District Court on May 9, 2014, charging Tiffany Look, age 39, of Harrisburg, Pennsylvania, with mail fraud.
According to U.S. Attorney Peter Smith, over a period between 2007 and 2013, Look was a branch manager at two area financial institutions, Mid Penn Bank and Members First Federal Credit Union. Look allegedly devised and carried out a scheme to obtain money from four customers of the institutions by taking out fraudulent loans in the customers’ names. The total loss was allegedly approximately $140,000.
The government also filed a plea agreement with Look in the case which is subject to approval by the Court.
The financial institutions both cooperated with the investigation conducted by the United States Postal Inspectors and the Swatara Township and Hampden Township Police Departments. The case is being prosecuted by Assistant United States Attorney Joseph J. Terz.
If convicted, Look faces a term of imprisonment of up to twenty years and fines up to $250,000.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is twenty years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances, and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public, and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Another Detroit Man Pleads Guilty to Distribution of HeroinRead the Press Release
Huntington, W.Va. – A Detroit man who conspired with others to distribute heroin, cocaine base and oxycodone in Huntington, West Virginia pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Cecil Rice, 34, pleaded guilty in federal court in Huntington to possession with intent to distribute heroin.
Between August of 2008 and September of 2013, Rice participated with others in the transportation of heroin, cocaine base and oxycodone from Detroit to Huntington for distribution. Rice and his co-conspirators established multiple residences in the Huntington to store, prepare and distribute drugs.
On September 19, 2013, Rice was arrested after leaving a motel located on 16th Street Road in Huntington. At the time of his arrest, officers found two packs of heroin concealed in Rice’s mouth. A search of Rice’s motel room uncovered additional heroin and cocaine base.
Rice faces up to 20 years in federal prison when he is sentenced on August 11, 2014.
The FBI Huntington Violent Crimes Drug Task Force and the Huntington Police Department conducted the investigation with assistance from the Cabell County Sheriff’s Department. Assistant United States Attorney Joseph F. Adams is in charge of 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 and heroin. 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 and heroin in communities across the Southern District.