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8 May 2014
Attorney General Holder and Secretary Duncan Issue Guidance for School Districts to Ensure Equal Access for All Children to Public Schools, Regardless of Immigration StatusRead the Press Release
WASHINGTON—Attorney General Eric Holder and Secretary Arne Duncan today announced updated guidance to assist public elementary and secondary schools to ensure enrollment processes are consistent with the law and fulfill their obligation to provide all children – no matter their background – equal access to an education.
In 2011, the Departments of Justice and Education issued guidance to help schools understand their responsibilities under the Supreme Court’s decision in Plyler v. Doe and federal civil rights laws to provide all children with equal access to an education regardless of their or their parents’ immigration status. Today, the departments are issuing important updates to that guidance, including examples of permissible enrollment practices, as well as examples of the types of information that may not be used as a basis for denying a student entrance to school.
The updated guidance documents— including a guidance letter to states and school districts and a fact sheet and Q and A document—emphasize the need for flexibility in accepting documents from parents to prove a child’s age and to show that a child resides within a school’s attendance area. They also provide specific examples of the types of documents that many schools have accepted. And the guidance documents remind schools that they may not require certain documents – such as a parent’s state-issued driver’s license – where such a requirement would prevent a student from enrolling because of his or her parent’s immigration status.
“Public school districts have an obligation to enroll students regardless of immigration status and without discrimination on the basis of race, color, or national origin,” said Attorney General Eric Holder. “The Justice Department will do everything it can to make sure schools meet this obligation. We will vigilantly enforce the law to ensure the schoolhouse door remains open to all.”
“We want to be sure every school leader understands the legal requirements under the Constitution and federal laws, and it is our hope that this update will address some of the misperceptions out there,” said Secretary Arne Duncan. “The message here is clear: let all children who live in your district enroll in your public schools.”
In the three years since the guidance was initially issued in 2011, the departments have worked collaboratively with states and school districts across the country to meet their obligations under Plyler and federal civil rights laws that prohibit discrimination on the basis of race, color and national origin.
The important changes announced today will provide districts with the additional tools and practical guidance needed to make sure the schoolhouse door is open to all students and that undocumented children and children from immigrant families no longer face barriers to enrollment in school and starting down the path to a better future.
All updated guidance material from today’s call will be available in both Spanish and English at http://www.justice.gov/crt/about/edu/documents/plyler.php
Arkansas-based Man, Responsible for over 800 Illegal Aliens Smuggled into Arizona from Mexico, Sentenced to Federal PrisonRead the Press Release
PHOENIX – On May 7, 2014, Rony Abimael Gonzalez-Herrera, 37, from Guatemala, was sentenced by U.S. District Judge John A. Jarvey to 57 months in federal custody. Gonzalez had pled guilty on Jan. 9, 2014, to conspiracy to transport and harbor illegal aliens.
Beginning in 2012 and continuing through April of 2013, Gonzalez, the leader of the alien smuggling organization based in Little Rock, Ark., and his associates, were responsible for illegally transporting and harboring at least 827 illegal aliens into the United States from Mexico. Gonzalez utilized multiple stash houses in the Phoenix area, including one discovered in January 2013 with over 40 illegal aliens. The organization also coordinated the illegal transportation of undocumented persons throughout the United States by significantly overloading vehicles.
On May 13, 2013, Homeland Security Investigations (HSI) agents in Little Rock, Ark., arrested Gonzalez and seized four cell phones which Gonzalez had utilized to contact his alien smugglers and illegal aliens’ families to make payments on behalf of their relatives.
Families of the illegal aliens reported that Gonzalez directed them to deposit the smuggling fees into specific bank accounts. After one illegal alien was apprehended by law enforcement, his family members contacted Gonzalez to request he return the smuggling fees. Gonzalez told the family that “your family will pay if you keep asking for the money.”
The investigation in this case was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Phoenix and Little Rock. The prosecution was handled by Kristen Brook, Assistant U.S. Attorney, District of Arizona, Phoenix
CASE NUMBER: CR13-1141-PHX-NVW
RELEASE NUMBER: 2014-028_Gonzalez-HerreraFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
7 May 2014
Wyoming Businessman Sentenced to Prison for Using Concealed Caribbean Bank Account in Tax Evasion SchemeRead the Press Release
Robert C. Sathre was sentenced today to serve 36 months in federal prison for tax evasion by U.S. District Judge Alan B. Johnson in Cheyenne, Wyoming, the Justice Department and Internal Revenue Service (IRS) announced. Sathre was also ordered to pay $3,113,882 in restitution to the IRS and to serve three years of supervised release. Sathre pleaded guilty on Feb. 26, 2014, to willfully evading the payment of his 1995 and 1996 tax liability.
According to court documents and proceedings, Sathre sold a Minnesota business and received installment payments in 1995 and 1996 of more than $3 million. Sathre concealed his income by filing a 1995 tax return in which he reported only $64,928 in total income. Sathre then purchased land and set up another business, a gas station and convenience store in Sheridan, Wyoming, known as the Rock Stop.
According to court documents and proceedings, Sathre concealed assets by opening a foreign bank account in the Caribbean island of Nevis and by using purported trusts. In a 10 month period spanning from 2005 through 2006, Sathre sent over $500,000 to the account in Nevis to keep the funds out of reach from the IRS. When Sathre sold the Rock Stop in 2007, he wired over $1,250,000 from the sale proceeds to the trust account of a Wyoming law firm. He later directed the law firm to wire $900,000 from the trust account to his account at the Bank of Nevis. Sathre also provided a false declaration and false promissory note to the Bank of Nevis to conceal the source of this transfer and obtained a debit card linked to the foreign account to access funds locally. In addition, Sathre provided the Bank of Sheridan with an IRS form on which he falsely claimed that he was neither a citizen nor a resident of the United States.
This case was investigated by special agents of IRS – Criminal Investigation. Trial Attorneys Ellen Quattrucci and Ignacio Perez de la Cruz of the Justice Department’s Tax Division prosecuted the case.
Westchester Man Pleads Guilty in White Plains Federal Court to Engaging in, and Videoing, Sexually Explicit Conduct with Seven Different Child Victims, All Under ElevenRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James T. Hayes, Jr., Special Agent-in-Charge of U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations in New York (“HSI”), announced that RICHARD DINIZO, 59, entered a guilty plea today to a six-count Information that was filed on May 5. The Information to which DINIZO pled guilty charges that DINIZO engaged in sexually explicit conduct with seven different minors, all under the age of 11 at the time of the sexual abuse, and videoed the sexual abuse, and that DINIZO transported the videos he made of the minors engaging in sexual activity to recipients outside of New York.
On April 25, 2013, the Government unsealed a six-count Indictment charging DINIZO with engaging in sexual activity with five minors and videoing it and transporting the sexually explicit videos to recipients outside of New York. The six-count Information filed May 5 supersedes that Indictment and adds additional victims of DINIZO’s crimes.
U.S. Attorney Preet Bharara stated: “For the children preyed upon by Richard Dinizo, the encounter was a nightmare. This serial pedophile not only recorded his deviant criminal acts but shared those videos with others. This prosecution incapacitates and holds to account a dangerous man who threatened the well-being of children in our community.”
Special Agent in Charge James T. Hayes, Jr. stated: “Today’s guilty plea will ensure that one of the most heartless and depraved child predator this office has ever encountered can never again victimize another child. I am grateful for the tireless, diligent effort of the HSI Special Agents, Westchester and Putnam police officers and deputies, the New York State Police, and local and Federal prosecutors who investigated and prosecuted these crimes."
According to the Information filed on May 5, 2014, and court proceedings:
From 2007 through 2010, DINIZO engaged in sexually explicit conduct with seven different minors, all under the age of 11 and videoed that conduct. DINIZO’s homemade videos included multiple videos in which DINIZO appears on camera with a blindfolded victim and engages in trickery in order to manipulate the victim into engaging in sexual activity.
After editing the videos (and removing, among other things, images of himself and the voices that appear on the unedited videos), DINIZO transported his homemade sexually explicit videos to recipients outside of New York. In 2010 and 2011, the National Center for Missing and Exploited Children (“NCMEC”) received DINIZO’s homemade videos among other videos recovered by law enforcement in investigations throughout the country and internationally. Until DINIZO’s arrest in this case and the instant investigation, NCMEC had not been able to identify the child victims or the place of their abuse.
DINIZO is scheduled to be sentenced by U.S. District Judge Vincent L. Briccetti on September 12, 2014, and faces a minimum sentence of 15 years in prison and a maximum sentence 170 years (30 years on each of Counts One through Five and 20 years on Count Six). The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
On February 18, 2014, DINIZO was convicted in Westchester County Court of Predatory Sexual Assault against a Child Less Than 13 Years Old and sentenced to a term of imprisonment of 25 years to life.
Mr. Bharara praised the efforts of ICE HSI, the Westchester County District Attorney’s Office, the Putnam County District Attorney’s Office, Putnam County Sherriff’s Office, the New York State Police, and the National Center for Missing and Exploited Children in connection with this investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.
DINIZO supersedinginformation FINAL
Washington Man Receives 19 Year Sentence in Child Pornography CaseRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls on April 28, 2014, before U.S. District Judge Brian Morris, KEITH CLIFFORD CUNNINGHAM, 70, of Kent, Washington, was sentenced to 228 months imprisonment followed by 5 years supervised release.
Cunningham was sentenced in connection with his January 2014 bench trial where he was found guilty. In a trial brief filed by Assistant U.S. Attorney Cyndee L Peterson, the government stated that the defendant Keith Clifford "Casey" Cunningham had traveled around several states, including Montana, due to his work on pipelines. In mid-August 2011, Cunningham was in Stanford, Montana. Cunningham had been intermittently visiting Stanford and frequenting the local diner for a couple years. On August 18, 2011, Cunningham saw an 8 year old girl in a local diner. Cunningham learned the girl's mother would be out of town for the day, and knew the girl was going to the local swimming pool that day.
That day, Cunningham befriended the child at the public swimming pool. Cunningham groomed the child throughout the day by doing such things as challenging her to play games at the pool, promising her chocolate bars, letting the child drive his vehicle while seated on his lap, and acting as though he was looking out for the child's well-being while her mother was out of town. Eventually, Cunningham took the little girl to the Judith Basin County Fairgrounds where he produced child pornography of the 8 year old girl. During an interview with law enforcement officers, Cunningham admitted he produced the images of the child with his digital camera stating that the child was acting "sexy" and wanted him to take the photographs.
The Grand Jury indicted Cunningham for production of child pornography in violation of federal law, and he was convicted of the crime at a bench trial on January 14, 2014. At trial, there was also evidence that Cunningham had previously purchased videos depicting child pornography online.
The United States' Attorneys Office for the District of Montana is committed to the safety and well-being of every child and has placed a high priority on combating sexual exploitation of minors. This case was prosecuted by an Assistant U.S. Attorney specifically designated to be a Project Safe Childhood for the District of Montana. Project Safe Childhood is a Department of Justice initiative launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. The threat of sexual predators soliciting children for physical sexual contact is well-known and serious. The danger of sexual perpetrators who produce child pornography - like Mr. Cunningham -- is equally, if not more, dramatic and disturbing.
Through a network of federal, state, tribal, and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. Project Safe Childhood is implemented through partnerships including the organizations who were involved in this case: Homeland Security Investigations, the Montana DOJ Division of Criminal Investigation, the Montana Internet Crimes Against Children Task Force, the Fergus County Sheriff's Office, and the Judith Basin County Sheriff's Office.
U.S. Attorney Melinda Haag, Alameda County District Attorney Nancy O’Malley, Drug Enforcement Administration, and High Intensity Drug Trafficking Area (HIDTA) Hosting Bay Area Prescription Drug Abuse Summit TodayRead the Press Release
SAN FRANCISCO – U.S. Attorney Haag, Alameda County District Attorney Nancy O’Malley, DEA, HIDTA, State Superintendent of Public Instruction Tom Torlakson, National HIDTA Director Mike Gottlieb, District Attorneys George Gascon (San Francisco), Ed Berberian (Marin), Mark Peterson (Contra Costa), Steve Wagstaffe (San Mateo), Gary Lieberstein (Napa), Board Presidents of the Medical Board of California, Pharmacy Board of California and Dental Board of California, The Partnership at DrugFree.org, UCSF, pharmaceutical CEOs, educators, pharmacists, medical insurers, coroners, physicians, local, state and federal law enforcement officials, policymakers, families and community members whose lives have been devastated by prescription drug abuse, and community members who have formed coalitions to address awareness, education and prevention efforts are joining together today for the Bay Area Prescription Drug Abuse Summit.
The event is being held at Futures Without Violence, 100 Montgomery Street, Presidio of San Francisco. Agenda attached.
Attorney General Eric Holder has recently stated that the rise in overdose deaths from heroin and prescription painkillers in the United States in recent years is an “urgent public health crisis.”
As part of the presentations it was revealed that nationally drugs overtook traffic accidents as a cause of death in 2009, and this trend continues. In Contra Costa County, accidental drug poisoning has been exceeding traffic accident fatalities in recent years. The majority of those overdoses involved prescription drugs. In 2013, for the first time in Marin County, the same is true.
U.S. Attorney Haag stated: “The Department of Justice has made combatting prescription drug abuse a high priority. U.S. Attorneys across the country are working hand in hand with law enforcement and the community to break down silos and force the conversation among relevant industries and agencies to bring this epidemic under control. Today’s summit furthers that effort. Awareness is a key component in bringing the issue out into the open so that parents and young people understand the prevalence of these dangerous drugs, and the devastating effects when they are misused.”
“Prescription drug abuse is a public safety and public health issue,” stated co-host Alameda County District Attorney Nancy O’Malley. “These drugs are highly susceptible to misuse and abuse, which can lead to addiction, accidental poisoning, or other grave consequences. Rates of prescription drug abuse and addiction in Alameda County as well as around the state and nation are alarmingly high, as are the numbers of tragic accidental overdoses due to these drugs. I applaud our Federal partners for their attention and dedication to addressing this epidemic.”
California State Superintendent of Public Instruction Tom Torlakson made opening remarks: “Prescription drug abuse continues to be a major threat to the safety and wellbeing of our young people, and it comes with some unique challenges. We need to educate parents and grandparents, educators, health care providers, and communities about how to keep young people safe from the abuse of prescription drugs.”
Co-host and DEA Special Agent in Charge Jay Fitzpatrick added: “Prescription drug abuse continues to plague the nation at an alarming rate, crossing all age, gender, and socioeconomic boundaries. It is the fastest growing drug problem in America and has reached epidemic proportions. Not only will this summit provide us with an opportunity to learn the extent of the problem in our communities, but also allows us to create an important dialog as we work toward the common goal of combatting this serious public health and safety issue.”
Prescription drug abuse has taken hold in every community and every state in the union. Governors across the country are facing the burgeoning issue of prescription drug abuse and the related resurgence of heroin, and like the Bay Area, are grappling with this public health crisis.
The Centers for Disease Control and Prevention has classified prescription drug abuse as an epidemic in the United States. According to CDC, one in twenty people 12 years and older used prescription painkillers without a prescription in 2010. And more than 2.1 million people in the U.S. are addicted to prescription opioid painkillers.
Many people who misuse prescription drugs, particularly teens, believe these substances are safer than illicit drugs because they are prescribed by a healthcare professional and dispensed by a pharmacist. The number of unintentional overdose deaths from prescription pain relievers has soared in the United States, more than quadrupling since 1999. In 2010 nearly 60% of drug overdoses involved pharmaceutical drugs. Opioids (oxycodone, hydrocodone and methadone) were involved in approximately three of every four pharmaceutical deaths.
Opioid addiction can lead to heroin addiction. As an addict’s tolerance for opioids increases, the habit becomes increasing and exponentially more expensive. At some point, heroin becomes the drug of choice for many because of its wide availability and far lower cost. A recent study concluded that 81% of heroin initiates mis-used prescription pain relievers before turning to heroin.
DEA and HIDTA addressed the substantial uptick in heroin in the Bay Area and California – much of it driven by a voracious appetite for prescription drugs. Co-host Mike Sena, HIDTA Director for Northern California said: “The uptick in the availability of prescription drugs on our streets and the resurgence of heroin on a large scale in Northern California is of great concern to law enforcement. It is essential that we focus our attention on enforcement, but equally important is raising awareness and providing education about the dangers of prescription drug abuse. We are hearing of too many young people descending into heroin when they can no longer obtain or afford prescription drugs. It is best to prevent their use of prescription drugs and make them aware of the dangers associated with this behavior.”
Michael Gottlieb, Director of the High Intensity Drug Trafficking Area Program at the White House Office of National Drug Control Policy spoke at the event. “The abuse of prescription drugs is having a devastating impact on public health and safety in communities throughout the Bay area and across the United States,” he said. “While there are no silver bullet solutions to this challenge, we know that every sector of our society - parents, patients, healthcare providers, law enforcement and manufacturers – each play a vital role in making our communities healthier and safer. The drug challenge is a public health issue, not just a criminal justice issue and by pursing a holistic response to this epidemic we know we can save lives.”
To address the threat of prescription drug abuse and diversion while also protecting legitimate access to these drugs for those suffering from pain, the Administration released Epidemic: Responding to America's Prescription Drug Abuse Crisis in 2011. This action plan provides a national framework for reducing prescription drug diversion and abuse by supporting education for patients and healthcare providers, recommending more convenient and environmentally responsible disposal methods to remove unused medications from the home, supporting the expansion of state-based prescription drug monitoring programs, and reducing the prevalence of pill mills and doctor shopping through enforcement efforts.The Governor of Vermont recently dedicated his state of the union speech to the issue of heroin addiction. In Vermont, last year there were 21 fatal heroin overdoses, twice as many as the year before, and five times the number just five years ago.
A few more disturbing national statistics:
- The number of prescriptions written for opioids has increased ten-fold since 1990.
- There was a five-fold increase in treatment admissions for prescription painkillers between 2000 and 2010.
- Between 2006 and 2010, heroin overdose deaths increased nationally by 45%. Heroin treatment numbers are up over 250% since 2000 and over 40% in the past year.
- 69% of those who mis-used pain relievers obtained them from a friend or relative.
- In Ohio, from 1999-2010, drug overdose deaths increased by 372%, and 45% of those involved prescription drugs.
Drug abuse is not a problem that law enforcement can solve alone. This is the reason for bringing experts in the Bay Area together today -- educators, doctors, pharmacists, pharmaceutical companies, researchers, policymakers, community activists, elected officials, local, state and federal law enforcement, practitioners in the rehabilitation world, the media, and others, to help tackle this challenging issue and highlight the absolute need for a focused effort in this area including prevention, awareness, treatment, and enforcement.
One significant challenge in the Bay Area is a lack of local statistics. Anecdotally participants and panelists are all seeing prescription drug abuse in the Bay Area on the rise and our teenagers and young adults are increasingly becoming the new face of heroin addiction. One local rehab director with decades of experience in the field called the influx of prescription drug and heroin addicted young adults in the Bay Area a “tsunami.”
U.S. Attorney Haag remarked: “The summit is intended to be the start of a movement to get in front of the issue in Northern California – to collect information, share best practices, develop ways to track and measure this growing phenomenon, and devise ways to contain this growing epidemic – before we are years down the road and more lives are lost or destroyed.”
(Summit Agenda )
Two Indicted and Two More Plead Guilty in Department of Labor Fraud CasesRead the Press Release
KNOXVILLE, Tenn. – On May 6, 2014, a federal grand jury returned two, one-count indictments against Kenneth A. Gianbolvo, of Knoxville, Tenn., and Shaun Hurst, of Sevierville, Tenn., charging both men with theft of government funds.
According to the indictment on file with the U.S. District Court, Eastern District of Tennessee, Gianbolvo is alleged to have embezzled more than $1000 from the U.S Department of Labor (DOL) from May 19, 2008, to May 16, 2009. The indictment against Hurst, also on file with the U.S. District Court, Eastern District of Tennessee, alleges that he embezzled more than $1000 from DOL, from Mar. 28, 2009, to Nov. 28, 2009.
Additionally, on May 6, 2014, John A. Savage and James Phillips waived indictment and each pleaded guilty to an information charging them both with theft of government funds. According to their plea agreements on file with the U.S. District Court, Eastern District of Tennessee, Savage and Phillips both received unemployment benefits from the state of Tennessee unemployment program. These unemployment benefits were supplemented with federal funds through the American Recovery and Reinvestment Act of 2009, which authorized 100 percent federal funding for unemployment benefits that they qualified for and received. An internal audit determined that each individual was overpaid unemployment benefits after failing to report his employment and earnings from his employer, violating the policies and procedures for receiving unemployment benefits. In his plea agreement Phillips admitted to obtaining unemployment insurance benefits to which he was unentitled. Savage also acknowledged in his plea agreement that he owed the overpayment.
If convicted, Gianbolvo, Hurst, Savage, and Phillips all face up to 10 years in prison, a fine of up to $250,000, a term of supervised release of up to three years, and a $100 special assessment. In addition to the criminal penalties, defendants faced a state-determined one-year ban from receiving unemployment benefits.
Unemployment benefits are designed to assist those who qualify under specific policies and procedures. Unemployment benefits fraud is a serious offense. Individuals who take advantage of this benefit program through theft, fraud, and lies, effectuated by hiding earnings, may be prosecuted and face both terms in prison and fines.
These charges are the result of an investigation by DOL- Office of Inspector General and Tennessee Department of Labor. Assistant U.S. Attorney Brooklyn Sawyers represents the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
Two Houma Men Sentenced in Heroin Distribution ConspiracyRead the Press Release
ROLAND “TROY” CHAMBERS, age 45, and GREGORY JACKSON, age 40, both of Houma, Louisiana, were sentenced yesterday by U.S. District Judge Jay C. Zainey to 71 months and 60 months incarceration, respectively, announced U.S. Attorney Kenneth Polite. Both defendants were sentenced to four years of supervised release to be served after their incarceration.
CHAMBERS previously pleaded guilty to one count of conspiracy to distribute 100 grams or more of heroin, one count of possession with intent to distribute 100 grams or more of heroin, and three counts of distribution of heroin. JACKSON previously pleaded guilty to one count of conspiracy to distribute 100 grams or more of heroin and five counts of distribution of heroin.
According to court documents, CHAMBERS and JACKSON worked together to sell heroin in the Houma, Louisiana area. From July 1, 2012 through May 31, 2013, CHAMBERS and JACKSON made several sales of heroin to confidential sources of the Drug Enforcement Administration (“DEA”). During the course of the conspiracy, JACKSON would instruct others on how to “bag up” heroin for resale to other drug users. CHAMBERS served as a supplier, making several trips to New Orleans to obtain more heroin. DEA agents and Terrebonne Parish Sheriff’s Office deputies arrested CHAMBERS in possession of over 100 grams of heroin immediately after he returned from New Orleans.
The case was investigated by the DEA New Orleans Division Office and the Terrebonne Parish Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Matthew Payne
Travel Agent Indicted for $360,000 Fraud Scheme, Stole from Willard High School BandRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a travel agent was indicted by a federal grand jury today for stealing $360,000 from the Willard High School Band Boosters, which forced the cancellation of a trip to Hawaii for more than 300 students and chaperones.
Calliope Rocky Saaga, also known as “Ope,” 39, of Saratoga Springs, Utah, was charged in a 15-count indictment returned by a federal grand jury in Springfield, Mo.
According to today’s indictment, Saaga, doing business as Present America Tours, LLC, contracted with the Willard High School Band Boosters in January 2011 to provide travel arrangements for a June 2012 band trip to Hawaii. Saaga was responsible for booking airfare, lodging, transportation, meals, tours, and travel insurance for over 300 students and chaperones. The Willard High School Band Boosters wired 12 payments of $30,000 each to Saaga between February 2011 and January 2012.
Saaga booked no reservations as required in the contract, the indictment says. Instead, as he received wire transfers from the band boosters, Saaga allegedly used the funds to finance his personal lifestyle, which included gambling in Las Vegas, Nev., international travel to Samoa, a trip to Disneyland, and numerous other expenses unrelated to the terms of the contract.
As a result of Saaga’s diversion of funds, the indictment says, the Willard High School band trip was cancelled and the Willard High School Band Boosters suffered a loss of $360,000.
While he was spending the money of the Willard High School Band Boosters to finance his personal lifestyle, the indictment says, Saaga transmitted e-mails to the Willard High School director of bands, which lulled the band boosters into believing that their trip to Hawaii was on schedule.
Today’s indictment charges Saaga with 12 counts of wire fraud and three counts of money laundering. The indictment also contains a forfeiture allegation, which would require Saaga to forfeit to the government any property derived from the proceeds of the alleged offense, including a $400,000 money judgment.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by IRS-Criminal Investigation, the FBI and the Willard, Mo., Police Department.Top Players in South L.A. Gang Controlled by Incarcerated Mexican Mafia Member Plead Guilty to Federal Racketeering ChargesRead the Press Release
LOS ANGELES – The “shotcaller” of a South Los Angeles street gang pleaded guilty today to federal racketeering and drug trafficking charges for his role in orchestrating the day-to-day activities of the gang that is controlled by an incarcerated member of the Mexican Mafia.
Today’s guilty pleas by Manuel Valencia come one week after the daughter of the Mexican Mafia member admitted to acting as her father’s voice to convey orders to the Harpys street gang.
The Harpys gang, which claims territory southwest of downtown Los Angeles and north of the University of Southern California, is one of more than a dozen Latino gangs across a wide swath of South Los Angeles controlled by Mexican Mafia member Danny Roman, who is serving a life-without-parole sentence at Pelican Bay State Prison and was not charged in the federal RICO case.
Roman’s daughter, Vianna Roman, 37, of Los Angeles, pleaded guilty on May 1 to racketeering, narcotics and weapons offenses pursuant to a plea agreement that contemplates a sentence of approximately 20 years in federal prison but could lead to a life prison term if the sentencing judge determines this is appropriate. When she pleaded guilty, Vianna Roman admitted that she acted as a conduit for her father’s orders as he exercised control over the Harpys gang.
The shotcaller of the Harpys gang – the man who imposed the orders from Danny Roman – pleaded guilty today to violating the federal RICO statute and to engaging in a continuing criminal enterprise connected to drug trafficking. Manuel Valencia, 38, of Walnut, admitted that he oversaw and participated in gang activities, which included collecting “taxes” from drug dealers who were allowed to operate in gang territory, retaliating against people who ran afoul of the gang, and engaging in drug trafficking. Valencia, who as a result of his guilty pleas also faces a maximum of life in federal prison, agreed in his plea agreement to serve a 27-year prison term.
According to court documents, Vianna Roman and Valencia orchestrated a scheme that allowed Danny Roman to continue to continue to control the activities of the South Los Angeles street gangs from the Special Housing Unit of Pelican Bay State Prison. Vianna Roman used coded language to pass information to and received orders from her father during trips to the Pelican Bay prison in Northern California. Vianna Roman pass the orders to Valencia and other high-ranking members of Harpys, who oversaw violent conduct and drug trafficking within both Harpys territory and the broader area controlled by Danny Roman. Valencia controlled and enforced the collection of tax payments from Latino gangs under Danny Roman’s control and issued orders to other gangs regarding drug sales and the use of violence.
Vianna Roman and Valencia pleaded guilty before United States District Judge R. Gary Klausner, who is scheduled to sentence Roman on July 28 and Valencia on September 8.
With the guilty pleas of Vianna Roman and Valencia – and two others that were entered on Monday – a total of 24 defendants charged two years ago in a federal racketeering indictment have now pleaded guilty. Out of the 29 defendants named in the indictment, one is still pending trial, three are fugitives, and charges against one were dismissed following his conviction of first-degree murder in Los Angeles Superior Court.
According to court documents, Danny Roman oversaw gang activity by giving orders that directed gang members to engage in criminal conduct, including the murder of rival gang and Mexican Mafia members, and the extortion of businesses and gangs to generate income that was funneled back to Danny Roman in state prison. The Harpys gang collected taxes and other extortionate payments through threats of violence, including murder. Acting under Danny Roman’s authority, Vianna Roman and Valencia orchestrated the extortion of vendors at the Alameda Swap Meet, which is outside of Harpys territory but within the area controlled by Danny Roman. The Alameda Swap Meet was in territory controlled by the 38th Street gang, another gang under the control of Danny Roman.
In addition to outlining Danny Roman’s control of the Harpys and of other gangs in South Los Angeles, the indictment charged specific criminal acts, including the distribution of methamphetamine, cocaine, crack cocaine and heroin; the murder of a gang member over a drug debt; robberies against residents and rival gang members; and conspiracies to commit murder, including a plot to kill a witness in a state court case against a member of another gang.
Two other defendants, who were scheduled to go on trial in two weeks, pleaded guilty on Monday.
Jaime Montano, 34, of Los Angeles, who is linked to the East Side Trece gang, pleaded guilty to two racketeering offenses that could send him to prison for as long as 30 years. In his plea agreement, Montano admitted leading a conspiracy to murder a man who testified at trial against another gang member.
Edgar Gonzalez, 30, also linked to the East Side Trece gang, pleaded guilty engaging in a racketeering conspiracy, admitting that he conducted Harpys business and represented Danny Roman while incarcerated in an Arizona state prison. Gonzalez faces up to 20 years in federal prison.
Montano and Gonzalez are scheduled to be sentenced by Judge Klausner, respectively, on July 28 and August 4.
The investigation into members of the Harpys and the other street gangs was called Operation “Roman Empire” and was conducted by the Los Angeles High Intensity Drug Trafficking Area (HIDTA) Task Force, which is comprised of officers with the Los Angeles Police Department and agents with the Drug Enforcement Administration.
Release No. 14-055
Three Topeka Men Indicted on Federal Gun ChargesIn Unrelated CasesRead the Press Release
WICHITA, KAN. – Three Topeka men were indicted Wednesday on federal gun charges in unrelated cases, U.S. Attorney Barry Grissom said.
Courtney Douglas Grayson, 32, Topeka, Kan., is charged with one count of unlawful possession of a .38 caliber revolver and ammunition after being convicted of a felony. He was convicted in 2013 in Shawnee County on a felony charge of criminal discharge of a firearm at an occupied building. The gun crime is alleged to have occurred Jan. 29, 2014, in Shawnee County, Kan.
Lamont T. Keeling, 37, Topeka, Kan., is charged with one count of unlawful possession of a .357 caliber revolver and ammunition after felony convictions. His previous convictions include felony vehicular burglary in 2008 in Shawnee County and aggravated assault with a deadly weapon in 2012 in Shawnee County.
Lenard Ramirez, Jr., 38, Topeka, Kan., is charged with one count of unlawful possession of a .45 caliber pistol and ammunition after being convicted of a felony. He was convicted in 2005 in Pottawatomie County on a felony charge of sale of narcotics. The gun crime is alleged to have occurred April 3, 2014, in Shawnee County, Kan.
If convicted, each of the defendants faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The ATF Violent Crimes Task Force and the Topeka Police Department investigated the cases. Assistant U.S. Attorney Randy Hendershot is prosecuting.
OTHER INDICTMENTS
Jermaine A. Rayton, 31, Topeka, is charged with one count of possessing a .45 caliber pistol in furtherance of a drug trafficking crime (possession with intent to distribute cocaine). The crime is alleged to have occurred April 29, 2014, in Topeka, Kan.
If convicted, he faces a penalty of not less than five years. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Three Sentenced in Wire Fraud CaseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, woman, her husband, and her son were sentenced on April 29, 2014, by U.S. District Judge Roberto A. Lange.
On October 10, 2012, Shannon Running, age 55, and Norman Running, Sr., age 55, both of Rosebud, and their son Norman Running, Jr., age 35, of Soldier Creek, were all indicted by a federal grand jury for Conspiracy to Commit Wire Fraud. Shannon was also charged with six counts of Wire Fraud, and Norman, Jr. was also charged with Structuring Currency Transactions.
Shannon and Norman, Sr. both pled guilty to the conspiracy charge on February 4, 2014. The other charges against Shannon were dismissed. On the same date, Norman, Jr. pled guilty to a Superseding Information charging him with Larceny, and the original Indictment against him was dismissed.
Shannon was sentenced to 51 months in custody, to be followed by 3 years of supervised release. She was ordered to pay restitution in the amount of $405,790.
Norman, Sr. was sentenced to 3 years of probation. He was ordered to pay restitution in the amount of $35,832.80.
Norman, Jr. was sentenced to 3 years of probation. He was ordered to pay restitution in the amount of $10,130.
In approximately June of 2009, Shannon Running contacted an acquaintance in California and told him that she expected to receive a large inheritance from her grandmother, which was untrue. Shannon requested that the victim provide her and her family with financial assistance, and assured him he would be repaid from her inheritance.
The victim was unable to provide the entire amount of financial support requested by Shannon, so he recruited some of his friends to loan money to the Running family as well.
The victims were contacted by e-mail and were instructed to send money via Western Union, MoneyGram, and other wire transfer methods. All three defendants benefitted from the scheme.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Shannon Running was allowed to self-surrender to the U.S. Marshals Service on May 6, 2014, and the two other defendants immediately began their terms of probation.
Synthetic Drug Dealers with Central Valley Connection Arrested as Part of Nationwide Enforcement OperationRead the Press Release
FRESNO, Calif. — Douglas Jason Way, 41, of Evanston, Ill.; Timothy Ortiz, 43, of Waukegan, Ill.; and Natalie Middleton, 28, of Clovis, Calif., have been arrested as part of a nationwide law enforcement effort to combat the threat of synthetic drugs. The arrests were announced by United States Attorney Benjamin B. Wagner; Jeffrey J. Fitzpatrick, Special Agent in Charge of the San Francisco Field Division of the U.S. Drug Enforcement Administration; Jose Martinez, Special Agent in Charge of the Oakland Field Office, Internal Revenue Service, Criminal Investigation; and Clark E. Settles, Special Agent in Charge of the San Francisco Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
The defendants were charged in a federal criminal complaint with conspiracy to traffic synthetic cannabinoids, commonly known as “spice,” “K2,” or “herbal incense.” They were also charged with causing the introduction of misbranded drugs into interstate commerce. Middleton, individually, was charged with money laundering the proceeds of drug trafficking. According to the complaint, the conspiracy involved the manufacture and distribution of at least 11 tons of smokable synthetic cannabinoids that contained the synthetic drugs AM-2201, JWH-018, and XLR11 to smoke shops and retail outlets throughout the United States and generated in excess of $20 million in illicit income. Manufactured by companies called Zencense and Zenbio, the drugs were processed in warehouses in Millbrae and Stockton, Calif. and marketed under the brand names of Bizarro, Posh, Sonic Zero, Headhunter, Neutronium, and Orgazmo. They were distributed to The Stuffed Pipe smoke shops in Central Valley, as well as to other retail establishments in 47 other states.
Public health and law enforcement agencies have seen the emergence of synthetic drug use. State and local public health departments note that synthetic cannabinoids can cause serious adverse health effects, including agitation, anxiety, nausea, vomiting, tachycardia, elevated blood pressure, tremor, seizures, hallucinations, and paranoid behavior. According to the American Association of Poison Control Centers, poison centers throughout the United States received 5,230 calls about exposures to these drugs in 2012 and 2,656 calls about exposures in 2013. Synthetic cannabinoids are not regulated as drugs for human consumption, and are often marketed as “legal” substances and sometimes labeled as “herbal incense” or “potpourri.” To address this emerging challenge, President Obama signed the Synthetic Drug Abuse Prevention Act into law in 2012, classifying 26 types of synthetic cannabinoids, including AM-2201, as Schedule I drugs under the Controlled Substance Act. DEA placed JWH-018 in Schedule I in 2011 and placed XLR11 in Schedule I last year.
This case was the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the DEA, IRS, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the Food and Drug Administration and the Fresno County Sheriff’s Department. The OCDETF program was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, OCDETF is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. This OCDETF investigation was also part of a nationwide law enforcement effort coordinated by the DEA’s Special Operations Division.
This enforcement action called Project Synergy began January 2014 and culminated this morning in 29 states. Project Synergy involves more than 45 DEA offices serving nearly 200 search warrants. As of today, more than 150 individuals have been arrested and federal, state and local law enforcement authorities have seized hundreds of thousands of individually packaged, ready-to-sell synthetic drugs as well as hundreds of kilograms of raw synthetic products to make thousands more. Additionally, more than $20 million in cash and assets were seized. These numbers are expected to grow as investigations continue.
The three Eastern District of California defendants were arrested in other districts. They will make their initial in the district where they were arrested, and a court date in the Eastern District of California has not yet been set.
If convicted of the drug charges, Way, Ortiz, and Middleton face a maximum statutory penalty of 20 years in prison and a $1 million fine. The FDA mislabeling charge carries a maximum statutory penalty of three years in prison and a fine of $10,000. Middleton also faces a maximum statutory penalty of 20 years in prison and a $250,000 fine if convicted of the money laundering charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Assistant United States Attorney Karen A. Escobar is prosecuting the case, and Assistant United States Attorney Heather Mardel Jones is handling the forfeiture of assets.
St. Charles County Man Sentenced for Using Interstate Facilities to Entice A MinorRead the Press Release
St. Louis, MO – MICHAEL ENGLER was sentenced to 60 months in prison for using interstate facilities to entice a minor on Craigslist. But that minor was an undercover officer working with the FBI’s Crimes Against Children Task Force.
According to court documents, in October 2013, an undercover officer posing as an 18-year-old posted a "male looking for a male" ad on Craigslist and Engler responded. When the undercover officer told Engler he was "14 years old," Engler still wanted to meet the child. When the "14-year-old" expressed hesitation, Engler told him he knew about boys experimenting and told him he was in a Boy Scouts "Venturing Program" for kids aged 14 – 20. On October 15, Engler agreed to meet with the officer posing as the 14-year-old boy saying he would teach him about oral sex. Engler was arrested on October 16, 2013, when he showed up at the designated meeting spot behind an ice rink on Brentwood Boulevard.
Engler, St. Charles, Missouri, pled guilty in January to one felony count of using interstate facilities to transmit information about a minor with intent to engage in sexual activity. He appeared today for sentencing before United States District Judge Henry Autrey.
This case was investigated by the St. Louis County Police Department in conjunction with the Federal Bureau of Investigation, the United States Secret Service and the St. Charles County Cybercrime Unit.
Southfield Tax Preparer Pleads Guilty to Aiding in the Preparation of False ReturnsRead the Press Release
A Southfield, Michigan resident pleaded guilty to willfully making false claims to the United States government by aiding in the preparation of false income tax returns, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Acting Special Agent in Charge Carolyn Weber, Internal Revenue Service Criminal Investigation.
Claudia Prince, 42, entered the guilty plea before U.S. District Court Judge John Corbett O’Meara.
According to court records, from 2009 to November 2011, Prince, doing business as A&C Tax Services, working out of her residence in Southfield, Michigan prepared forty-two individual tax returns for the years 2008, 2009 and 2010. These tax returns were false. Prince fabricated or inflated W-2 wage and earning statements, withholding information, and education credits (Hope and Lifetime Learning Credits). Prince will be required to pay restitution of $107,846 to the Internal Revenue Service.
A sentencing hearing was set by Judge O’Meara for September 9, 2014 at 10am. The maximum penalty for willfully aiding in the preparation of false tax returns is imprisonment of not more than three years and a $250,000 fine per each count.
The investigation of this case was conducted by the Special Agents of the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Ross MacKenzie.SoCal Immigration Consultants Sentenced to Prison in Scheme That Filed Bogus Asylum Applications for Hundreds of Chinese AliensRead the Press Release
SANTA ANA, California – The owner of a San Gabriel immigration consulting business and one of his employees have been sentenced to federal prison for participating in a long-running scheme to prepare and file fraudulent asylum applications that made phony claims of religious persecution on behalf of hundreds of Chinese nationals.
Haoren Ma, 50, of San Gabriel, the owner of New Arrival Immigration Service, was sentenced April 28 to 4½ years in federal prison after pleading guilty to conspiracy, immigration document fraud and aggravated identity theft. Ma’s employee, Minghan Dong, 49, of San Gabriel, was sentenced on Monday, May 5 to one year and one day in prison for conspiracy to commit immigration document fraud. Both men were sentenced by United States District Judge Cormac J. Carney.
According to court documents, Ma and Dong charged as much as $6,500 to prepare and file fraudulent asylum applications on behalf of Chinese nationals. Ma and Dong falsely claimed that their clients fled China after being persecuted for their Christian beliefs, even in situations where the clients said they were Buddhists.
Federal authorities founds that many of the asylum applications prepared by the defendants contained nearly identical accounts of purported persecution, including descriptions of underground church meetings that led to arrests and torture by Chinese authorities. As part of the scheme, Ma and Dong provided their clients with detailed written materials and audio tapes on Christianity to help them prepare for their asylum interviews.
Suspicions about New Arrival Immigration Service first arose in January 2009 when U.S. Customs and Border Protection officers intercepted a package containing a stuffed animal that contained five fraudulent Chinese passports. The package was being shipped to an address used as a mail drop by New Arrival Immigration Service.
During a search of New Arrival Immigration Service and related offices, investigators seized stacks of partially completed asylum applications, counterfeit Chinese consular and embassy embossing seals, financial records and counterfeit identity documents. Ma and Dong were arrested in September 2011 by special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) following the execution of the federal search warrants.
“As this sentence makes clear, those who corrupt the integrity of our nation’s legal immigration system by exploiting our country’s generous asylum laws must understand there are serious consequences for those actions,” said Claude Arnold, special agent in charge for HSI Los Angeles. “As a country, we’re committed to providing refuge for those fleeing persecution, but there will be no such protections for people who manipulate this system for profit and put our nation’s security at risk in the process.”
As the investigation unfolded, HSI worked closely with U.S. Citizenship and Immigration Service’s (USCIS) Los Angeles Asylum Office in Anaheim to identify potentially fraudulent asylum applications submitted by the defendants.
“We are very pleased with this outcome,” said David Radel, Acting L.A. Asylum Office Director with USCIS. “It is an excellent example of federal agencies working together to combat fraud and maintain the integrity of our immigration system. USCIS is committed to identifying those who may have illegally obtained asylum through this fraudulent scheme and providing this information to our investigative colleagues.”
Based upon queries of databases maintained by the immigration courts, HSI investigators linked the defendants to more than 800 asylum applications filed since 2000, making it one of the largest asylum fraud cases uncovered in the Los Angeles area in recent years.
Release No. 14-057
Silver Spring Man Sentenced to over 20 Years in Prison for Conspiring to Induce A 9 Year Old Girl to Be Photographed Engaging in Sexual ActsRead the Press Release
Helped Entice the Victim to Submit to Sexual Degradation and Abuse
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced David Andrew Pizer, age 46, of Silver Spring, Maryland today to 249 months in prison followed by supervised release for life, for conspiring to produce child pornography. Judge Grimm ordered that upon his release from prison, Pizer 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; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, co-conspirator A used pictures of a nine year old girl to create profiles on online forums to advertise to others who expressed a sexual interest in children. Thereafter, and from March 16 to May 11, 2012, Pizer emailed and chatted online with conspirator A and the victim to encourage the victim to submit to sexual degradation and abuse that Pizer either watched through web-cam or that co-conspirator A would photograph and provide to Pizer and others. Pizer also introduced co-conspirator B to the victim and co-conspirator A, to help persuade the victim to continue to engage in sexual acts. Pizer and co-conspirator B repeatedly emailed images of minors dressed in sexually provocative outfits or engaged in sexual acts to co-conspirator A to help groom the victim to engage in sexual acts.
Further investigation revealed that Pizer’s laptop computer had 4,486 images and six videos that depicted children engaged in sexual acts with adults, children in sexually provocative poses or nude image of children. Approximately 605 of the images depicted the victim in lingerie, nude or engaged in sexual acts.
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 and the Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi O’Malley, who prosecuted the case.
Seattle Police and ATF Sieze Cache of Guns in Magnolia HomeRead the Press Release
The tenant who rented the basement of a home in Seattle’s Magnolia neighborhood, and his heroin supplier, have both been charged with gun and drug crimes after selling heroin and a firearm to a person working with law enforcement, announced U.S. Attorney Jenny A. Durkan. At the time of the arrests last week, law enforcement seized a dozen weapons including a Mac-11 submachine gun and silencer. JORGE CARLOS CAMPS, 34, made his initial appearance in U.S. District Court in Seattle last week on charges of distributing heroin and two counts of being a felon in possession of a firearm. ROGER LEE HIDDLESTON, 44, of Seattle, made his initial appearance in federal court today. He is charged with distribution of heroin, possession of heroin with intent to distribute, possession of methamphetamine with intent to distribute and unlawful possession of a firearm. Both men are being held at the Federal Detention Center at SeaTac pending further proceedings in the case.
According to the criminal complaint, on April 28, 2014, CAMPS allegedly sold heroin and a firearm to a person working with law enforcement. CAMPS or his cohorts also sent pictures of various weapons via text message, along with a price list for the guns. CAMPS has a prior felony conviction for violating a domestic violence court order and is prohibited from possessing firearms. HIDDLESTON allegedly supplied the heroin to CAMPS and was present and participated in the sale to the person working with law enforcement. Police stopped HIDDLESTON’s car after he left the Magnolia home. Inside they found heroin, methamphetamine, drug distribution materials, and $2,225 in currency. In the trunk they recovered a Sig Sauer Model P230 9mm Kurz semi-automatic pistol. HIDDLESTON is the subject of a domestic violence protection order and therefore is prohibited from possessing firearms.
Distribution of heroin is punishable by up to 20 years in prison. Possession with intent to distribute methamphetamine is punishable by up to 40 years and has a five year mandatory minimum sentence. Felon in possession of a firearm is punishable by up to ten years in prison.
The charges contained in the criminal complaints are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Seattle Police Department, the Drug Enforcement Administration (DEA) and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
The cases are being prosecuted by Assistant United States Attorney Todd Greenberg.
Rosebud Man Charged with Firearm Violations and Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Possession of Unregistered Firearm, Prohibited Person in Possession of Firearm, Assault with a Dangerous Weapon and Using and Carrying a Firearm During and in Relation to a Crime of Violence.
Clyde Aquallo, age 39, was indicted on April 22, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 5, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about February 27, 2014, Aquallo, being an unlawful user of a controlled substance, knowingly received and possessed several firearms, one of which was a short barreled shotgun that was not registered to Aquallo. On or about March 3, 2014, Aquallo unlawfully assaulted the victim with a rifle, and did carry and use the firearm during a crime of violence.
The charges are merely accusations and Aquallo is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Aquallo was released to a third party custodian pending trial. A trial date has been set for July 1, 2014.
Ronald Randolf Johnson Sentenced for Obtaining Oxycodone by DeceptionRead the Press Release
The United States Attorney's Office announced that on April 24, 2014, RONALD RANDOLF JOHNSON was sentenced to a year in prison and a year of supervised release by Senior U.S. District Judge Sam Haddon. Johnson, of Couer d'Alene, Idaho, was sentenced in connection with his guilty plea to obtaining Oxycodone, a potent pain killer available only by prescription, by deception. In an Offer of Proof filed by Assistant U.S. Attorney Bryan Whittaker, told the Court that on September 10, 2010 and on October 3, 2011, Johnson signed an Agreement and Consent for Controlled Medication Therapy for Chronic Pain with Dr. Deborah Kern at Community Health Partners in Bozeman, Montana. In that agreement, he agreed that he would only use one provider to prescribe controlled substance(s). He further agreed that he would not request any pain medications or controlled substance from other providers. And, that he would inform any other health care provider that he was taking controlled substance(s) from Dr. Kern. Johnson further represented that his date of birth was 4/10/1959. Based upon Johnson's representations, he was able to obtain prescriptions from Dr. Kern for Oxycodone. Johnson deceived Dr. Kern because he was in fact seeing other physicians from whom he was also obtaining Oxycodone and the birthdate, a common method of verifying patient identity, was a fake.
Upon learning that Johnson had not been truthful about his treatment with other physicians, and that he had been prescribed narcotics from other physicians, Dr. Kern terminated her care of Johnson and on August 15, 2012, sent Johnson a letter stating, "This letter is to inform you that I will no longer be able to prescribe narcotics for you for your chronic pain effective today. It has come to my attention that you are on a pain contract with a provider in Idaho for narcotics as well."
Johnson made similar misrepresentations to pharmacies in order to obtain large quantities of Oxycodone. For example, on September 27, 2012, at a pharmacy in Liberty Lake, Washington, Johnson attempted to fill a prescription for Oxycodone from Dr. Heidi Kallestad. When Johnson went to fill the prescription he was asked by the pharmacist to verify his date of birth. Johnson verbally stated that his date of birth was 4/10/1959. This date of birth was different than the date the pharmacy had on record for him. When asked for identification he provided an Idaho license which had a crease down the center and the date of birth had been punched out by what looked like a sharp object. Local law enforcement was called and Johnson was arrested.
Using a correct and truthful date of birth is critical when filling prescriptions because it is one method used by physicians, pharmacies, and law enforcement to detect fraudulent prescriptions and to prevent patients from obtaining a greater amount of a controlled substance than they would otherwise be entitled. Furthermore, Johnson did not notify any of the physicians that he was being treated by any other physicians or that he was already receiving a controlled substance from a separate/different physician. During the period of time charged in the indictment, Johnson fraudulently obtained prescriptions for more than 13,000 pills of Oxycodone through his deception, fraud, and misrepresentations made to physicians and/or pharmacies.
Ricky Dwayne Harvey Sentenced to 180 Months on Oxycodone Trafficking and Money Laundering ChargesRead the Press Release
GREENEVILLE, Tenn. – On May 5, 2014, Ricky Dwayne Harvey, 30, of Kingsport, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 180 months in federal prison for his leadership role in oxycodone and money laundering conspiracies centered around the Sullivan County, Tenn., area.
This conspiracy included 17 indicted individuals and involved large scale oxycodone dealing from approximately May 2008. Many of the pills obtained and sold within this conspiracy were obtained from Michigan, Florida and Georgia and transported back to the Eastern District of Tennessee for resale. Harvey stipulated that he conspired to distribute a conservative estimate of 10,000 (30 mg) oxycodone pills in the Eastern District of Tennessee. He also sent numerous wire transfers and directed other individuals to send wire transfers to other co-conspirators in Detroit, Michigan to further and advance his oxycodone trafficking.
Harvey was stopped by law enforcement in June 2013 where he produced a fake drivers’ license, supplied a false date of birth and social security number and had members of his family vouch for him. His true identity was soon verified and he was arrested on a federal indictment warrant. In explaining his actions, Harvey told the officers that he did his homework in the event he got stopped, just like an officer also does his homework.
Law enforcement agencies participating in the investigation which led to the indictment and subsequent conviction of Harvey include the Bureau of Alcohol, Tobacco and Firearms, Sullivan County Sheriff’s Office, Kingsport Police Department, and Bristol Tennessee Police Department, all of which provided invaluable assistance during the course of the investigation. Assistant U.S. Attorney Wayne Taylor represented the United States.
Raleigh Man Pleads Guilty to Child Pornography ChargeRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today, JOHN LOUIS LEWANDOWSKI, 51, pled guilty before United States Magistrate Judge James E. Gates to receipt of child pornography and possession of child pornography, in violation of Title 18, United States Code, Sections 2252(a)(2) and 2252(a)(4)(B), during his arraignment.
On December 17, 2013, a 15-Count Indictment was filed charging LEWANDOWSKI with these violations.
According to the investigation, after LEWANDOWSKI was determined to be a customer of a company which sold pornographic videos of children, a search was executed at his home. LEWANDOWSKI admitted to the searching agents that they would find both videos he had ordered from the company and delivered him by mail, and other child pornography which he had downloaded from the internet. Forensic review of the materials seized revealed numerous videos and images of child pornography.
2At sentencing, LEWANDOWSKI faces a minimum of 5 years and up to 20 years imprisonment on each of the fourteen counts of receipt of child pornography, and up to 20 years on the count charging possession of child pornography. If he has had prior convictions relating to aggravated sexual abuse, sexual abuse, abusive conduct involving a minor or ward, sex trafficking of children, or the production, receipt, possession, sale, distribution, shipment, or transportation of child pornography, the penalty increases to up to a minimum of 15 years to 40 years imprisonment on the fourteen counts of receipt of child pornography, and a minimum of 10 years and up to 20 years imprisonment on the count charging possession of child pornography.
Investigation of this case was conducted by the United States Postal Inspection Service, United States Department of Homeland Security, and the North Carolina State Bureau of Investigation.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Physician/Owner and Office Manager of McLean Skin Care Clinic Convicted at TrialRead the Press Release
Aphrodite Advanced Esthetic & Skin Care Clinic received illegal imports for Gallant Pharma, which sold over $10 million of non-FDA-approved chemotherapy and cosmetic drugs in the U.S.
ALEXANDRIA, Va. – Anoushirvan Sarraf, 48, and Eva Montejo Pritchard, 48, both of Rockville, Maryland, were convicted yesterday by a federal jury on charges of conspiracy related to their roles in a scheme to illegally import non-FDA-approved chemotherapy and cosmetic drugs into the United States.
Sarraf, a physician who owns Aphrodite Advanced Esthetic & Skin Care Clinic in McLean, Virginia, was also convicted on charges of illegal importation, receiving and delivering non-FDA-approved drugs and devices, and engaging in the unlicensed wholesale distribution of prescription drugs. In all, Sarraf was convicted of nine felonies and four associated misdemeanors, while Pritchard, who was the office manager of the clinic, was convicted of a single felony count of conspiracy.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Antoinette V. Henry, Special Agent in Charge of the Food and Drug Administration’s (FDA) Office of Criminal Investigations; Katrina W. Berger, Acting Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Washington; Gary Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and M. Douglas Scott, Arlington County Chief of Police, made the announcement after the jury’s verdict was accepted by U.S. District Judge Claude M. Hilton.
Sarraf and Pritchard were indicted on Jan. 30, 2014, by a federal grand jury. According to court records and evidence at trial, Sarraf partnered with Gallant Pharma, an unlicensed wholesale prescription drug distributor, in exchange for a deeply discounted price on non-FDA-approved cosmetic drugs and devices. Sarraf used those cosmetic drugs and devices on patients at his McLean, Virginia practice, Aphrodite Advanced Esthetic & Skin Care Clinic, without the patients’ knowledge or consent.
Sarraf provided Gallant Pharma with his medical license to enable Gallant Pharma to order non-FDA-approved chemotherapy and cosmetic drugs from around the world, and allowed those drugs to be smuggled into the United States, addressed to Aphrodite. When the drugs arrived, a member of the conspiracy would open the boxes, take what they wanted for Aphrodite, and call individuals from Gallant Pharma to retrieve the remainder. Many of the shipments involved “cold-chain” drugs subject to strict temperature controls (which were not followed by the conspirators), and the use of these drugs posed serious potential harm to chemotherapy and cosmetic patients throughout the United States. During the three years that the partnership lasted, more than 17,000 vials of pharmaceuticals passed through Aphrodite and were sold by Gallant Pharma for more than $10.3 million.
Sarraf faces a total maximum penalty of 87 years in prison, while Pritchard faces a maximum penalty of five years, when each is sentenced on July 18, 2014. Eleven other defendants, including the co-founders of Gallant Pharma, previously have been convicted for their involvement in the partnership.
This case was investigated by FDA’s Office of Criminal Investigations, the DEA’s Group 33 Diversion Task Force, ICE-HSI and the U.S. Postal Inspection Service, with assistance from the Arlington County Police Department. Assistant U.S. Attorneys Lindsay Kelly, Maya Song and Jay Prabhu are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Owner of Security Training Companies Pleads Guilty to Fraud ChargesRead the Press Release
Ricky Lee Coleman, Jr., 40, of Antioch, Tenn., pleaded guilty today to charges of mail fraud, wire fraud, and credit card fraud, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Coleman owned and operated International Executive Services LLC, Advancement Solutions LLC, and RLC Enterprises, all companies based in Hermitage and Antioch, Tennessee that defrauded thousands of military veterans and others seeking job training and job placement services.
At a plea hearing before U.S. District Court Judge Aleta A. Trauger, Coleman admitted that between January 2006 and March 2009, approximately 2,600 customers paid Coleman’s companies more than $900,000 in return for promises that they would be provided training in the areas of counter-terrorism, counter-assault, personal security or special operations. Coleman directed his employees to make false representations to customers and potential customers, including promises that those who paid a registration fee would be placed into a training class and would bear no additional costs beyond the registration fee. Customers were also promised that they would be paid during training and that they would be guaranteed employment after training.
Coleman also admitted that fewer than 20 of the thousands of customers who paid fees to his companies were ever assigned to attend training classes; many were asked to pay additional fees; and none were paid during training. Coleman also instructed his employees to make misrepresentations to customers who had paid for training in order to delay their attempts to seek refunds and to postpone their complaints, including sending letters falsely informing customers that they were enrolled in certain training academies, including fictitious academies that did not exist. In addition, Coleman fraudulently induced customers to pay for equipment that was supposedly required for the promised training classes.
Coleman also admitted that he spent the majority of funds paid by customers on personal expenses or on efforts to recruit new customers.
Coleman will be sentenced by Judge Trauger on August 11, 2014. He faces up to 20 years in prison for each of four counts of wire fraud, 20 years in prison for the count of mail fraud, and 15 years in prison for the count of credit card fraud. Coleman has also agreed to pay more than $900,000 restitution to victims of his offenses.
The case was investigated by the United States Secret Service, the Tennessee Bureau of Investigation, the United States Postal Inspection Service and the Metro-Nashville Police Department. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
Ninety-Year Old Drug Courier Sentenced to 3 Years in PrisonRead the Press Release
A ninety-year old man from Indiana was sentenced today to three years in federal prison for his role as a drug courier for a major cocaine trafficking organization with direct ties to the Joquin Guzman Lorea (a/k/a “Chapo” Guzman) Sinaloa cartel, announced United States Attorney Barbara L. McQuade.
The case is being prosecuted by Assistant United States Attorneys Christopher Graveline and Doug Salzenstein.
McQuade was joined in the announcement by James Allen, Acting Special Agent in Charge, Drug Enforcement Administration, Detroit Division.
Receiving the sentence was Leo Sharp, who pleaded guilty on October 8, 2013, to conspiracy to distribute cocaine. In addition to the prison sentence, United States District Judge Nancy G. Edmunds also ordered Sharp to pay $500,000, that includes forfeiture of real estate owned by Sharp in Florida.
United States Attorney Barbara L. McQuade stated, "In this case, it was important to balance the defendant's age with his conduct -- seven separate trips to transport more than 1,200 kilograms of cocaine across the country and into Michigan, for which he was paid more than $1 million by a major Mexican drug cartel. In light of this conduct, the defendant's age should not be a get-out-jail free card."
According to court records, Sharp had been a drug courier for the better part of a decade but it wasn’t until the fall of 2011 when he was stopped by law enforcement on Interstate 94 outside of Ann Arbor, MI, and found to be in possession of 104 kilograms of cocaine, that his extensive involvement with the drug trafficking organization was completely discovered. In fact, that particular seizure was only one such trip that Sharp and other couriers had undertaken to bring hundreds of kilograms of cocaine and marijuana to southeast Michigan from Arizona. Through the lead efforts of the DEA, with assistance from the Department of Homeland Security Investigations, law enforcement were able to identify and indict nineteen individuals from across the country and into Mexico for their roles in this mass narcotics operation. Sixteen of the nineteen indicted individuals have pleaded guilty and have either been sentenced or are awaiting sentencing over the next several months.
To date, the investigation has led to the seizure of over 200 kilograms of cocaine and $3,000,000 in narcotics proceeds.Moses Lake Methamphetamine Trafficker Given 51 Month in PrisonRead the Press Release
The United States Attorney's Office announced that ENRIQUE LOPEZ SOLANO, 40, from Moses Lake, Washington, was sentenced to 51 months imprisonment followed by 3 years supervised release during a federal court session in Missoula on April 29, 2014, before Senior U.S. District Judge Donald Molloy. Solano was sentenced in connection with his guilty plea to possession with intent to distribute methamphetamine.
Assistant U.S. Attorney Joseph E. Thaggard told the Court that in early 2013, the Montana Division of Criminal Investigation (MDCI), Sidney, Montana Police Department, and the Drug Enforcement Administration (DEA) began to investigate a drug trafficking organization that was distributing methamphetamine in the Sidney, Montana area. The investigation disclosed that a courier involved with the drug trafficking organization had met with "Jane Doe," another member of the organization, during a meeting in Livingston, Montana in mid-March 2013 wherein the courier distributed methamphetamine to Jane Doe. Jane Doe subsequently identified Solano as the drug courier she met in Livingston in mid-March 2013 and from whom she received methamphetamine. On June 15, 2013, the Montana Highway Patrol stopped a rental car Solano had rented and in which he was a passenger at the time of the stop. A search of the vehicle revealed more than 200 grams (roughly 7 ounces) of methamphetamine hidden in or near the air filter of the car.
The prosecution was part of Project Safe Bakken, a cooperative effort between federal and state prosecutors and federal, state, local, and tribal law enforcement agencies in Montana and North Dakota working together to stem the rising tide of drug trafficking in the oil boom region of the Bakken Fields.
Minnesota Man Charged with Immigration Fraud <br /> for Failing to Disclose Crimes Committed in Bosnia <br /> and Military Service During the Bosnian ConflictRead the Press Release
Zdenko Jakiša, 45, of Forest Lake, Minnesota, was arrested today on immigration fraud charges for failing to disclose multiple crimes committed in Bosnia-Herzegovina and his military service during the armed conflict there in the 1990s.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, United States Attorney Andrew M. Luger of the District of Minnesota, Special Agent in Charge J. Michael Netherland of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) St. Paul and Acting Special Agent in Charge Jane Rhodes-Wolfe of the FBI’s Minneapolis Field Office made the announcement.
Jakiša made an initial appearance today in the District of Minnesota and is scheduled for a detention hearing on May 12, 2014.
According to the indictment unsealed today, Jakiša, a former member of the armed forces of the Croatian Defense Council in Bosnia-Herzegovina, committed immigration fraud by providing false and fraudulent information about his military service during the Bosnian conflict, his criminal record in Bosnia-Herzegovina and his commission of crimes of moral turpitude.
Records from Bosnia and Bosnian witnesses indicate that Jakisa committed numerous crimes in Bosnia-Herzegovina, which he did not disclose during his refugee or green card applications. Such crimes include the murder of an elderly Bosnian Serb woman and the kidnapping, robbery and assault of a Bosnian Muslim man in September 1993.
The case is being investigated jointly by HSI St. Paul and the FBI’s Minneapolis Field Office. ICE’s Human Rights Violators and War Crimes Center provided the lead in this investigation. The Criminal Division’s Office of International Affairs and their counterparts at the Prosecutor’s Office of Bosnia and Herzegovina provided valuable assistance.
The case is being prosecuted by Senior Trial Attorney Matthew C. Singer from the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Nate Petterson of the District of Minnesota.
Members of the public who have information about former human rights violators in the United States are urged to contact U.S. law enforcement through the Human Rights and Special Prosecutions Section at [email protected] , toll-free at 1-800-813-5863, the HSI tip line at 1-866-DHS-2-ICE, or to complete its online tip form at www.ice.gov/exec/forms/hsi-tips/tips.asp . To learn more about the assistance available to victims in these cases, the public should contact HSI’s confidential victim-witness toll-free number at 1-866-872-4973. Tips may be provided anonymously.
The charges in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.Men from Oregon and Pennsylvania Plead Guilty to Defrauding New Mexico-Based CompanyRead the Press Release
ALBUQUERQUE – Two men have pleaded guilty to conspiracy to defraud Kinesio USA LLC, a New Mexico-based company that sells therapeutic elastic tape and related products, and its related company, Kinesio Holding Corporation (together, “Kinesio”), announced Acting U.S. Attorney Damon P. Martinez, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation.
Johannes Jarvis, 41, of Portland, Ore., and John Hope, 66, of Huntingdon Valley, Pa., each entered a guilty plea to Count 22 of a 38-count indictment charging them with conspiracy to commit wire fraud. Jarvis entered his guilty plea this morning and Hope entered his guilty plea on May 5, 2014.
Jarvis and Hope were charged in a 38-count indictment that was filed on July 11, 2013, and charged them with a wire fraud conspiracy count, 21 counts of wire fraud and 16 counts of money laundering. The indictment alleged that from late 2007 through April 2010, Jarvis and Hope conspired to defraud Kinesio of approximately $4.3 million, at least $1.2 million of which Jarvis and Hope retained as profits. At the time, Jarvis was the Director of Marketing for Kinesio and Hope owned a printing business that operated in China that had been hired to produce marketing materials for Kinesio.
According to court filings, in 2007, Kinesio began looking for a new manufacturer for its therapeutic elastic tape and Jarvis suggested searching for a manufacturer in China. Thereafter, Jarvis lied to Kinesio and reported that he had located a suitable manufacturer in China but that Kinesio would have to work through a broker to coordinate the business relationship. In April 2008, Jarvis and Hope incorporated Grace International (HK) Limited (“Grace International”) in Hong Kong, of which they were the sole owners. Jarvis told Kinesio that Grace International was an experienced company, when in reality it had no other clients. Jarvis represented to Kinesio that Grace International would broker the relationship between Kinesio and the tape manufacturer. In their plea agreements, Jarvis and Hope admitted that they concealed their ownership of the company because they knew that Kinesio would not have agreed to use Grace International as a broker if Kinesio had been aware that Jarvis and Hope were involved in it.
Relying on Jarvis’s misrepresentations, Kinesio entered into a contract with Grace International pursuant to which Kinesio paid Grace International to produce therapeutic elastic tape between July 2008 and Jan. 2010. During this period, Jarvis and Hope defrauded Kinesio by having Grace International charge Kinesio a significant undisclosed markup above the manufacturer’s price for the tape, which Jarvis and Hope hid from Kinesio. Jarvis and Hope shared the profits generated by the markup on a 65/35 split with Jarvis getting the larger share. As a means of continuing the deception, Jarvis and Hope sent emails to personnel at Kinesio that purported to be from employees at Grace International. The emails were composed in broken English so as to make it appear that they were written by a native Chinese speaker.
At sentencing, Jarvis and Hope each face a maximum statutory penalty of 20 years in federal prison. They also will be required to pay restitution to Kinesio in an amount to be determined by the court. Both men remain on conditions of release and under pretrial supervision pending their respective sentencing hearings, which have yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and IRS Criminal Investigation in Albuquerque and is being prosecuted by Assistant U.S. Attorney C. Paige Messec.
McLaughlin Man Charged with Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Assault Resulting in Serious Bodily Injury.
Logan Hayes, age 26, was indicted on April 15, 2014. He appeared before U.S. Magistrate Judge William D. Gerdes on May 6, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about July 31, 2012, Hayes unlawfully assaulted the victim, which resulted in serious bodily injury.
The charge is merely an accusation and Hayes is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Hayes was released on bond pending trial. A trial date has not been set.
Martin Woman Sentenced in Federal Program Fraud CaseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Martin, South Dakota, woman convicted of Conspiracy to Commit Theft Concerning Programs Receiving Federal Funds was sentenced on May 6, 2014, by Jeffrey L. Viken, Chief U.S. District Judge.
Samone Darla Milk, age 32, was sentenced to 14 months in custody, to be followed by 3 years of supervised release. She was also ordered to make restitution of $109,135.
Milk was indicted for Conspiracy to Commit Theft Concerning Programs Receiving Federal Funds and two counts of Theft Concerning Programs Receiving Federal Funds by a federal grand jury on October 8, 2013. She pled guilty to the conspiracy charge on January 3, 2014, and the other charges were dismissed.
From May 2009 through December 2009, Milk formed an agreement with others to steal funds belonging to the Oglala Sioux Tribe. Milk was the executive secretary for the Tribe’s Energy/Low Income Home Energy Assistance Program (LIHEAP.) In her capacity as executive secretary, Milk and others drafted fake invoices and quotes for contract work purportedly to be completed by co-conspirators. Milk facilitated the processing of these documents through the Energy/LIHEAP program. In turn, checks were issued by the Tribe’s Treasurer’s Office to pay for the fraudulent invoices. Milk and her co-conspirators received the checks, cashed them, and divided the funds among themselves to use for their own purposes.
This case was investigated by the U.S. Department of Health and Human Services, Office of Investigations. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Milk was ordered to turn herself in to the U.S. Marshals Service on or before May 22, 2014.
Manhattan U.S. Attorney Announces Return of 10Th Century Sandstone Sculpture to the Kingdom of CambodiaRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James T. Hayes, Jr., the Special Agent-in-Charge of the New York Office of U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), announced today the return of the Duryodhana, a 10th Century sandstone sculpture, to the Kingdom of Cambodia. The return of the Duryodhana follows the settlement of a civil forfeiture action filed by the U.S. Attorney’s Office for the Southern District of New York, which alleged that the Duryodhana was stolen from the Prasat Chen temple at Koh Ker in 1972 by an organized looting network, and ultimately imported into the United States and offered for sale by Sotheby’s Inc. (“Sotheby’s”). The settlement of the civil forfeiture action, which was approved by United States District Judge George B. Daniels on December 16, 2013, required Sotheby’s and the customer selling the Duryodhana, Decia Ruspoli de Poggia Suasa (“Ruspoli”), to return the sculpture to the Kingdom of Cambodia.
Manhattan U.S. Attorney Preet Bharara said: “A priceless piece of Cambodia’s cultural history was stolen over 40 years ago. Once stolen, the Duryodhana should not have been for sale at any price. By bringing legal action to cause the return of the Duryodhana to the Kingdom of Cambodia, we have reaffirmed our commitment to ensuring that Manhattan does not become a Mecca for stolen art and antiquities. Everyone who sells, collects, or curates art should support doing what is right when it comes to repatriating priceless stolen artifacts. We are proud to have played a role in removing the Duryodhana from the stream of commerce, and pleased to commemorate its imminent return to its homeland.”
HSI Special Agent-in-Charge James T. Hayes, Jr., said: “HSI is proud to partner with the Southern District of New York to return this statue to the people of Cambodia after a more than 40-year absence. HSI is committed to continuing to be the dominant force in preserving and maintaining the integrity of cultural symbols throughout the world.”
According to an Amended Complaint filed in Manhattan federal court in April 2013, and other documents filed in the case:
From 928 to 944 A.D., Koh Ker was the capital of the ancient Khmer empire in Cambodia. The Khmer regime under Jayavarman IV constructed a vast complex of sacred monuments at Koh Ker, including the Prasat Chen temple and its statuary. These monuments have never been transferred to any private owner, and remain the property of the Cambodian state.
During the civil conflicts of the 1960s and 1970s, statues and other artifacts were stolen from Koh Ker and entered the international art market through an organized looting network. In the case of monumental statues like the Duryodhana, the heads would sometimes be forcibly detached from the torsos and transported first, with the torsos following later, due to the physical challenges of transporting the large torsos on dirt roads. The statues would then be transported to the Cambodia-Thailand border, and transferred to Thai brokers, who would in turn transport them to dealers of Khmer artifacts in Thailand, particularly Bangkok. These dealers would sell the artifacts to local or international customers, who would either retain the pieces or sell them on the international art market.
The Duryodhana, along with a companion statue, the Bhima, was stolen from Prasat Chen in 1972 via this looting network. The heads of the statues were removed and transported first, followed by the torsos, and ultimately delivered to a Thai dealer based in Bangkok. The Duryodhana and the Bhima were then obtained by a well-known collector of Khmer antiquities (Athe Collector@). The Duryodhana was sold to a Belgian businessman in 1975 and was ultimately transferred to his widow, Ruspoli.
In 2010, Ruspoli consigned the Duryodhana to Sotheby’s. Sotheby’s imported it into the United States and offered it for sale in 2011.
Mr. Bharara thanked HSI for its outstanding work on this investigation, which he noted is ongoing, and praised its ongoing efforts to find and repatriate stolen and looted cultural property. Mr. Bharara also thanked the United Nations Educational, Scientific, and Cultural Organization and L’Ecole Francaise d’Extreme-Orient for their assistance.
This matter is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U. S. Attorneys Sharon Cohen Levin, Alexander J. Wilson, Sarah E. Paul, and Christine I. Magdo are in charge of the case.
Duryodhana - Cambodian Scupture - Amended Complaint
Duryodhana - Cambodian Sculpture - Settlement Stipulation and OrderMan Pleads Guilty to Assaulting Security Guard at Social Security Administration OfficeRead the Press Release
A man who forcibly assaulted a security guard at the Social Security Administration Office in Cedar Rapids, Iowa, pled guilty today in federal court in Cedar Rapids.
Howard Lamont Coakley, 30, from Cedar Rapids, Iowa, was convicted of one count of assaulting a person engaged in official federal duties.
At the plea hearing, Coakley admitted he forcibly assaulted a security guard who was working for the Social Security Administration in Cedar Rapids. Coakley further admitted his assault caused bodily injury to the security guard.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Coakley remains in custody of the United States Marshal pending sentencing. Coakley faces a possible maximum sentence of twenty years’ imprisonment, a $250,000 fine, a $100 special assessment, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Federal Protective Service.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 14-CR-00017.
Local 17 Member Sentenced for ExtortionRead the Press Release
BUFFALO, N.Y. -- The United States Attorney’s Office announced today George Dewald, 56, of Springville, N.Y., who was convicted of extortion, was sentenced to six months in prison, six months home confinement, and two years of supervised release by Chief U.S. District Judge William M. Skretny. The defendant was also ordered to pay $240,000 in restitution to victims.
According to Assistant U.S. Attorney Anthony M. Bruce, who handled the case, Dewald was a member of Local 17 of the International Union of Operating Engineers. The defendant was part of campaign designed to force Marcy Excavation of Frankfort, N.Y., the low bidder on the 2003 expansion of the Chaffee Landfill in Chaffee, N.Y., to sign a collective bargaining agreement with Local 17. In May 2003, Dewald and three other Local 17 members went to the Chaffee Landfill under the cover of darkness and put sand used for sandblasting into the engines and hydraulic lines of nine separate pieces of heavy equipment. This caused significant delays in finishing the job and over $240,000 in damage to the equipment.
Dewald was one of 12 officers and members of Local 17 arrested and charged in this case. Six defendants pleaded guilty, President Mark Kirsch was convicted at trial, four were acquitted at trial, and charges are pending against the twelfth defendant.
The investigation of this case was handled by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Cheryl Garcia, Acting Special Agent-in-Charge of the New York Regional Office, the Federal Bureau of Investigation, and the New York State Police, under the direction of Major Michael Cerretto.Las Vegas Man Charged with Enticing Minor to Have SexRead the Press Release
LAS VEGAS, Nev. – A Las Vegas, Nevada man who works as a family and marriage counselor, appeared in federal court today following his arrest on charges that he solicited a minor for sex, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Ian Alexander Pincombe, 45, is charged in a criminal complaint with coercion and enticement of a minor. Pincombe appeared this afternoon before U.S. Magistrate Judge Carl W. Hoffman and was detained pending a preliminary hearing on May 21, 2014. If convicted, Pincombe faces a minimum of 10 years to life in prison, and a $250,000 fine.According to the criminal complaint, on April 30, 2014, a Henderson Police Department Detective initiated an undercover operation regarding using technology to lure a minor. The detective located an advertisement on Craigslist.com in which an individual, later identified as Pincombe, was seeking females for sex and had included a nude photograph. The undercover detective, posing as a 13-year-old girl, began communicating with Pincombe. Over the next two days, Pincombe allegedly exchanged sexually explicit emails and text messages with the girl, one of which included a sexually explicit photograph of himself. On May 2, 2014, Pincombe was arrested by Henderson Police Department Officers at a shopping center parking lot in Henderson where he had agreed to meet the girl for a sexual encounter.
The case is being investigated by the FBI, the Henderson Police Department, and the Internet Crimes Against Children Task Force, and is being prosecuted by Special Assistant United States Attorney Allison Herr and Assistant United States Attorney Cristina D. Silva.
The 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
The public is reminded that a criminal complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
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."Las Cruces Man Pleads Guilty to Violating Federal Narcotics and Firearms LawsRead the Press Release
ALBUQUERQUE – John Wade Crist, 57, of Las Cruces, N.M., pleaded guilty yesterday in federal court in Las Cruces, N.M., to methamphetamine trafficking and firearms charges. Under the terms of his plea agreement, Crist will be sentenced to 144 months in federal prison followed by a term of supervised release to be determined by the court.
Crist was arrested on Nov. 15, 2013, and a two-count indictment charging him with distribution of methamphetamine and being a felon in possession of a firearm. According to the indictment, Crist distributed methamphetamine and possessed a firearm in Doña Ana County, N.M., on June 19, 2013. At the time, Crist was prohibited from possessing firearms or ammunition because he previously had been convicted of two narcotics trafficking offenses.
During yesterday’s plea hearing, Crist entered a guilty plea to the indictment. In his plea agreement, Crist admitted selling 23.3 grams of methamphetamine to an undercover officer who was posing as a drug dealer on June 19, 2013, in Doña Ana County. Crist also admitted that on that same date, he possessed a shotgun and sold the firearm to the undercover officer.
Crist has been in federal custody since his arrest. He remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Lapwai Man Pleads Guilty to Failing to Register as A Sex OffenderRead the Press Release
COEUR D’ALENE —Jacob Russell Jackson, 54, of Lapwai, Idaho, pleaded guilty today to failing to register as a sex offender, U.S. Attorney Wendy J. Olson announced. Jackson was indicted by a federal grand jury in Coeur d’Alene on April 16, 2013.
According to in-court statements, in 1996 Jackson was convicted in federal district court for two counts of Abusive Sexual Contact. Jackson registered as a sex offender after his release from prison, however in December 2012, he stopped registering. Jackson remained unregistered until his indictment in April 2013.
The charge of failure to register as a sex offender is punishable by up to ten years in prison, a maximum fine of $250,000.00, and five years up to lifetime supervised release.
Jackson is set for sentencing on August 26, 2014, before Chief United States District Judge B. Lynn Winmill, at the federal courthouse in Coeur d’Alene.
The case was investigated by the U.S. Marshals Service.
Jackson was prosecuted for a violation of the Sex Offender Registration and Notification Act (SORNA) passed by Congress in 2006. The Act requires sex offenders to register and keep their registration current in each jurisdiction where they reside. Violations of SORNA can be prosecuted in federal court.
Kewa Pueblo Man Sentenced to Seventeen and a Half Years in Prison for Aggravated Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Preston Coriz, 33, a member and resident of Kewa Pueblo, was sentenced today to 210 months years in federal prison for his aggravated child sexual abuse conviction. Coriz will be on supervised release for ten years after he completes his prison sentence. He also will be required be required to register as a sex offender.
The sentence was announced by Acting U.S. Attorney Damon P. Martinez, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.
Coriz was arrested in Nov. 2012, on an indictment charging him with sexually abusing a child under the age of 12 years in Nov. 2008, in Indian Country (Kewa Pueblo) within Sandoval County, N.M. On July 11, 2013, Coriz pleaded guilty to the indictment and admitted sexually assaulting a child under the age of 12 by touching the child’s genitals with his hand and finger.
This case was investigated by the Albuquerque and Santa Fe offices of the FBI and the Southern Pueblos Agency of the BIA’s Office of Justice Services, and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Justice Department Settles Immigration-Related Discrimination Claim Against Master Klean JanitorialRead the Press Release
The Justice Department reached an agreement today with Master Klean Janitorial, a company based in Denver, resolving claims that the company engaged in a pattern or practice of discriminatory documentary requests based on citizenship status in violation of the Immigration and Nationality Act (INA).
The department’s investigation was initiated based on a referral from U.S. Citizenship and Immigration Services. The investigation found that Master Klean Janitorial subjected work-authorized non-U.S. citizen new hires to unlawful demands for specific documentation issued by the U.S. Department of Homeland Security in order to verify their employment eligibility, while U.S. citizens were permitted to present their choice of documentation. The INA’s anti-discrimination provision prohibits employers from placing additional documentary burdens on work-authorized employees during the hiring and employment eligibility verification process based on their citizenship status or national origin. This practice is commonly known as document abuse.
Under the settlement agreement, Master Klean Janitorial will pay $75,000 in civil penalties to the United States, undergo training on the anti-discrimination provision of the INA, revise its employment eligibility verification policies and be subject to monitoring of its employment eligibility verification practices for one year.
“The Department of Justice is committed to eliminating discriminatory hurdles for work-authorized non-U.S. citizens in the employment eligibility verification process,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “I am pleased that Master Klean Janitorial has worked cooperatively with the department to reach an amicable resolution.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee, document abuse and retaliation or intimidation
For more information about protections against employment discrimination under immigration laws or how to sign up for a free webinar, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired), call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired) or visit the OSC website at www.justice.gov/crt/about/osc .
Applicants or employees who believe they were subjected to different documentary requirements or discrimination based on their citizenship status, immigration status or national origin in hiring, firing or recruitment or referral should contact the worker hotline above for assistance.
Johnstown Doctor Charged with Illegally Distributing NarcoticsRead the Press Release
JOHNSTOWN, Pa. – A Johnstown physician has been indicted by a federal grand jury in Johnstown on charges of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
The 136-count indictment, returned on May 6 and unsealed today, named Dr. Glenn Davis, 61.
According to the indictment presented to the court, from August of 2011 to February 2013, Dr. Davis prescribed and distributed thousands of Schedule II controlled substances (i.e., Oxycodone, Morphine, Oxycontin, Methadone, Fentanyl patches, Dilaudids, Opanas) outside the usual course of professional practice.
The law provides for a maximum sentence, at each of the 136 counts, of 20 years in prison and a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Office of the Pennsylvania Attorney General, the Cambria County Drug Task Force, and the Internal Revenue Service Criminal Investigation Division conducted the investigation that led to the prosecution of Davis.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
James Fray Sentenced to Prison for Illegally Possessing FirearmsRead the Press Release
The United States Attorney's Office announced that JAMES EUGENE FRAY, 59, of Missoula, was sentenced to 57 months imprisonment, $10,000 in fines and 3 years supervised release, during a federal court session in Missoula on April 29, 2014, before Senior U.S. District Judge Donald Molloy. Fray was sentenced in connection with his December 2013 guilty plea to being a felon in possession of a firearm.
Assistant U.S. Attorney Paulette L. Stewart told the Court that between September 25, 2013, and October 4, 2013, Fray, a federally convicted felon, possessed ten firearms in Missoula, Montana. Fray has a federal conviction for a violation of 18 U.S.C. Section 922 (h), being a convicted felon receiving a firearm, that prohibits him from possessing firearms. The case agent obtained a certified copy of the Judgment from the United States District Court in North Dakota which documents Fray's name as James Anthony Frey. Due to a previous ATF investigation, the case agent verified that James Eugene Fray and James Anthony Frey are one and the same person.
Some of those firearms were stolen. On October 3, 2013, Missoula area law enforcement executed a search warrant on Fray's Toyota pickup truck. During the search warrant execution, the officers recovered firearms and ammunition. The firearms were stolen from a storage shed in the Missoula area. Investigation revealed that Fray purchased the firearms knowing that they were stolen.
Jackson County Man Sentenced for Theft of Government BenefitsRead the Press Release
Charleston, W.Va. – Michael W. Smith, 36, of Sandyville, Jackson County, West Virginia, was sentenced to five years’ probation following his guilty plea to theft of government benefits, United States Attorney Booth Goodwin announced today. Smith was also ordered to repay $10,110 to the federal government.
In October 2008, Smith began receiving Supplemental Security Income (SSI) benefits on behalf of his uncle, James Conrad, as Conrad’s representative payee. A representative payee is a person who agrees to receive SSI benefits on behalf of the intended recipient. When Conrad died on April 29, 2009, Smith’s right to receive benefits on behalf of his uncle terminated. Smith continued, however, to receive and cash SSI payments intended for his deceased uncle from May 2009 to July 2010. These payments totaled $10,110. In March 2011, Smith admitted his theft to agents of the Social Security Administration’s Office of the Inspector General (SSA OIG).
The SSA OIG conducted the investigation. Assistant United States Attorney Erik S. Goes handled the prosecution. The sentence was handed down by United States District Judge John T. Copenhaver, Jr.
JAMES ZANDER PLEADS GUILTY TO TAX EVASION Great Falls Dentist Used Fraudulent Religious Enterprise to Claim Exemption from TaxationRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls on May 5, 2014, before U.S. District Judge Brian Morris, JAMES ZANDER, 63, pled guilty to one count of Tax Evasion. Zander faces a potential sentence of five years in prison, $250,000 fine, the costs of prosecution and three years of supervised release. Restitution will include unpaid taxes, interest and penalties.
In an Offer of Proof filed by Assistant U.S. Attorney Chad Spraker, Spraker told the Court that Zander, a dentist who owned and operated Dental Care of Great Falls beginning in 1992, filed individual income tax returns until the 2001 tax year. Zander's tax preparer prepared an IRS Form 1040 2001 individual income tax return for Zander and an IRS Form 1120S for Zander's solely owned corporation, Dental Care of Great Falls. Zander did not file the individual 2001 return. Dental Care of Great Falls, however, filed the corporate return, which was signed by Zander. The corporate return listed $101,755 in officer compensation and $117,769 in pass-through income. Dental Care of Great Falls also submitted a 2001 IRS Form W-2 to the IRS listing Zander's wages at $101,755. Spraker provided the Court Zander's filing history to establish his knowledge of the filing requirements.
On February 20, 2002, Zander formed Solid Rock Partners, LP in Nevada; on July 16, 2003, he formed Royal Priesthood Society, a corporation sole, in Nevada; and on June 10, 2008, he formed American Humanitarian Project, another corporation sole, in Arizona. Zander opened and maintained bank accounts for each of these entities.
Zander maintained two bank accounts for Dental Care of Great Falls. According to Zander's assistant, one account funded office bills and the other account funded Royal Priesthood Society. Zander used money from Royal Priesthood Society for personal expenditures. According to Zander's bookkeeper, Zander instructed her to classify checks from Dental Care to Royal Priesthood Society as charitable contributions. From 2006 to 2009, $271,000 in checks was issued from Dental Care of Great Falls to Royal Priesthood Society. From 2002 to 2009, Zander purchased five parcels of land in the name of Solid Rock Partners and Royal Priesthood Society.
On February 17, 2004, Zander sent a signed IRS Form 1040 2001 individual income tax return to the IRS listing zeroes in each of its sections for income, adjusted gross income, and tax liability. The return requested a $27,131 refund, the amount Zander had withheld that year.
On July 2, 2004, the IRS sent Zander a letter informing him that his 2001 return was frivolous and warned him of the consequences of not paying his taxes. Based upon the 2001 IRS Form 1120S for Dental Care of Great Falls, the W-2 issued to Zander, and other documents received by the IRS, the IRS completed an audit and assessed Zander's 2001 tax liability at $86,195.37. On May 10, 2006, the IRS sent Zander a letter with the proposed assessment and again warned him of the consequences of failing to pay his taxes. When Zander did not respond to the letter, the IRS issued him a June 30, 2006, notice of deficiency, and on February 26, 2007, the IRS assessed his 2001 tax liability at $87,694.90. The IRS later revised its assessment and calculated a $100,972.81 liability as of March 10, 2010 for the tax year 2001.
In December 2007 and January 2008, the IRS issued a notice of levy to Zander with respect to bank accounts he held at Stockman Bank. In response, Zander sent letters to Stockman Bank asserting that the levies were unlawful and Zander is not subject to taxation. After the IRS collected approximately $2,000 from the levies, Zander stopped making deposits into the Stockman accounts and closed them on November 18, 2008.
On April 13, 2009, IRS Revenue Agent Graves served summonses on other financial institutions holding Zander's money, including First Interstate Bank. Zander closed his bank account at First Interstate Bank on October 16, 2009.
On October 23, 2009, and November 2, 2009, Zander sent fictitious $300 million "Private Indemnity Bonds" to the U.S. Treasury Secretary. The "Private Indemnity Bonds" purported to offset Zander's pre-existing and future liabilities.
IRS Revenue Officer Murray placed liens on Zander's property at the Cascade County Clerk and Recorder's office on October 7, 2009. The following day Murray hand delivered three letters to Zander warning of IRS collection for the tax years 2001 and 2005. On October 19, 2009, Zander responded and attached the IRS's levy notices stamped "Refused for Cause." On October 21, 2009, Murray sent Zander a letter warning him of the frivolous nature of his arguments and the potential for criminal penalties. On November 30, 2009, Zander sent Rena Moore, the Cascade County Clerk, a letter demanding she release the tax liens within ten days.
Despite Zander's tax debt, Dental Care of Great Falls earned over $1 million in gross receipts from 2006 to 2009. From 2003 to 2009, Zander spent $274,905 on precious metals, and from 2002 to 2009 he spent $108,168 on five parcels of land.
Sentencing is set for August 15, 2014, at the Missouri River Courthouse in Great Falls, Montana.
The case was investigated by the Criminal Investigation Division of the Internal Revenue Service.
Inland Empire Couple Pleads Guilty to Federal Charges Involving Sex Trafficking of A Child Who Worked as Prostitute in HemetRead the Press Release
RIVERSIDE, California – Two Inland Empire residents have pleaded guilty to federal sex trafficking charging, admitting that they forced a 14-year-old girl to work as a prostitute in 2012.
Kawaum Marquez Scott, 24, of Quail Valley, and Nekeyia Necole Weatherspoon, who also used the name “Keey Bee,” 22, of Perris, pleaded guilty yesterday in United States District Court.
Scott pleaded guilty to two counts of sex trafficking of a child, and Weatherspoon pleaded guilty to one count of conspiracy to engage in child sex trafficking
According to court documents, Scott and Weatherspoon forced the 14-year-old victim into prostitution. The defendants, who took photos of the victims and used the pictures to advertise services on the Internet, drove the victim to destinations in Hemet to engage in prostitution, made her use an alias, and advised her to tell male customers that she was 18 years old. Scott and Weatherspoon took all the money paid to the girl for the sex acts.
According to an affidavit filed in this case, on one occasion in October 2012, Scott and Weatherspoon brought the victim to a motel in Hemet, where she engaged in sex with multiple men over a two-day period, and received approximately $2,500 in payment, all of which went to the defendants.
In plea agreements filed in court, prosecutors and the defense agreed that Scott should receive a sentence of 210 months and Weatherspoon should be sentenced to between 84 and 168 months in federal prison
United States District Judge Virginia A. Phillips will review a presentence report prior to accepting the agreed-upon sentences in this case. A sentencing hearing is scheduled for July 21.
The investigation in this case was conducted by the Riverside County Sheriff’s Department and the Federal Bureau of Investigation, which are members of the Inland Child Exploitation Task Force (ICEP), a multi-agency effort that investigates matters of child exploitation, primarily the sexual trafficking of minors.
Release No. 14-056
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Strong on May 6, 2014 and entering pleas of Not Guilty were:
- JONAS L. FLANSBURG, a 31-year-old resident of Dodson, appeared on charges of being a felon in possession of a firearm. If convicted of the charged contained in the indictment, FLANSBURG faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 14-29
Appearing before U.S. Magistrate Lynch in Missoula on May 6, 2014 and entering pleas of Not Guilty were:
- STEVEN MICHAEL CATE, a 44-year-old resident of Newport, Washington appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, CATE faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by Homeland Security Investigations. PACER Case Reference: 14-21
- DANIEL ROGER RACHELL, a 43-year old resident of Darby, appeared on charges of threats against the President and threats against former presidents and certain other persons. If convicted of the most serious charges contained in the indictment, RACHELL faces 5 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Secret Service. PACER Case Reference: 14-25
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Importer Convicted of Selling Sexual Enhancement Products Containing Prescription DrugsRead the Press Release
ALEXANDRIA, Va. – Richard Deng, 68, of Silver Spring, Md., pleaded guilty today to introducing into interstate commerce misbranded foods and drugs, in violation of the federal Food, Drug, and Cosmetic Act. In particular, Deng admitted unlawfully selling various male sexual enhancement dietary supplements that contained the active ingredients in the prescription drugs Viagra and Cialis, and dispensing the products without a prescription and in packaging that failed to disclose the existence of these substances.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, and Antoinette V. Henry, Special Agent in Charge of the Food and Drug Administration’s (FDA) Office of Criminal Investigations, made the announcement after the plea was accepted by U.S. District Judge Gerald Bruce Lee.
Deng faces a maximum penalty of three years in prison when he is sentenced on August 1, 2014.
In a statement of facts filed with the plea agreement, Deng admitted operating a business known as InterTradeCorp or InterTradeMart, which sold various imported items through its Beltsville, Md. storefront and over the Internet. These products included sports apparel, DVDs and male sexual enhancement dietary supplements, many of which contained sildenafil, the active ingredient in prescription drug Viagra, and/or tadalafil, the active ingredient in prescription drug Cialis. Deng admitted that after his Beltsville facility was searched in 2011 and the unlawful products were seized, he continued to sell the products. After a second search warrant was executed at Deng’s business in 2013, authorities discovered additional male sexual enhancement dietary supplements unlawfully containing sildenafil. Deng admitted that during the period 2011-2013, he received approximately $333,070 from the sale of these products.
The products seized and found to unlawfully contain prescription drugs include products known as the following: Vivid, LuRong Sheng Jing Wan, Good Man, Stree Overlord, Zhong Hua Niu Bien, Hard Ten Days, Africa Black Ant, Tiger King, Stiff Nights, Vegetal Vigra, Titan, Libigrow, Weekend Prince, Black Ant, Plant Vigra, Man King, Tibet Babao, Zhang Sheng Wei Ge Caho Yue Xi Li Shi, Mojo Risen, Clalis, Sensual Sensuel, and God of War Veyron.
These products were dispensed without a prescription and in packaging that failed to disclose the existence of prescription drugs. Some of the products also contained dosages of sildenafil and tadalafil beyond those approved for Viagra and Cialis or contained combinations of those substances that have not been approved by the FDA. Moreover, if the substances were to contraindicate with a user’s medical condition or prescription drugs, serious harm to the user could result.
This case was investigated by the FDA’s Office of Criminal Investigations. Assistant U.S. Attorney Paul J. Nathanson is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Howes Woman Sentenced for Credit Union EmbezzlementRead the Press Release
United States Attorney Brendan V. Johnson announced that a Howes, South Dakota, woman convicted of embezzlement from a credit union was sentenced on April 29, 2014, by U.S. District Judge Robert A. Lange.
Sara Jo Morrison, age 33, was sentenced to 1 month in custody to be followed by 2 years of supervised release. She was also ordered to make restitution in the amount of $5,400.
Morrison was indicted for Credit Union Embezzlement by a federal grand jury on July 17, 2013. She pled guilty on January 14, 2014.
Between October 2010 and January 2011, Morrison was employed as a teller at a credit union in Eagle Butte. She took money from her teller drawer and then falsely recorded the drawer’s cash count on the credit union’s books.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Morrison was allowed to self-surrender to the U.S. Marshals Service on May 6, 2014.
Hogback, N.M., Man who was Convicted on Rape Charge After Trial is Sentenced to Twelve and a Half Years in Federal PrisonRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney Damon P. Martinez and John Billison, Director of the Navajo Nation Division of Public Safety, announced that Myron Jim Harry, 27, was sentenced this morning to 151 months in federal prison followed by ten years of supervised release for his rape conviction. Harry will be required to register as a sex offender after he completes his prison sentence.
Harry, an enrolled member of the Navajo Nation from Hogback, N.M., was arrested in May 2010, based on a criminal complaint alleging that he sexually abused a Navajo woman in Shiprock, N.M., on May 6, 2010. According to the complaint, Harry committed the offense while the victim could not communicate her unwillingness to participate in the sexual act. Harry subsequently was indicted on that same charge.
On May 9, 2013, a federal jury found Harry guilty on the sole count of the indictment after a four-day trial. The evidence at trial established that, on the night of May 5, 2010, Harry and several others celebrated the victim’s birthday in a Shiprock apartment. Early the next morning, while the victim was asleep next to another woman in a bedroom in the apartment, Harry entered the bedroom and the victim awoke to find Harry raping her. The other woman, who awoke to find Harry raping the victim while the victim was asleep, yelled at Harry to get off of the victim and threw him out of the apartment. Other witnesses in the apartment testified that the victim was in a state of shock and crying after being violated by Harry. The victim was examined at a medical facility where a sexual assault evidence kit was used to preserve evidence. The examination revealed that the victim sustained physical injuries to her vaginal area and DNA analysis revealed that Harry’s semen was found on the victim. Harry testified in his own defense and claimed that he had been seduced by the victim and that the intercourse was consensual.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback and Special Assistant U.S. Attorney David M. Adams.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Heroin Dealer in Poplar Grove Area of Baltimore Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Isiah Robinson, age 27, of Baltimore, to 10 years in prison followed by five years of supervised release for conspiring to distribute and possession with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to his plea agreement and court documents, from January to July 23, 2013, Robinson conspired with his father, Darryl Robinson Sr., and others to distribute heroin from an open-air drug “shop” in the Poplar Grove neighborhood of Baltimore. On a daily basis, the co-conspirators bought heroin, stored the drugs at stash houses throughout Baltimore City and packaged the drugs to sell on the streets. Isiah Robinson personally sold heroin to customers in Baltimore City while also supervising and directing other street-level dealers.
During the conspiracy, Isiah Robinson and others conspired to distribute and possess with the intent to distribute at least a kilogram of heroin.
Darryl Robinson, age 49, of Baltimore, a leader of the drug trafficking organization, previously pleaded guilty to his participation in the conspiracy and was sentenced to 15 years in prison.United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Clinton J. Fuchs and Scott Lemmon, who prosecuted the case.
Harold Williams Sentenced to 92 Months for Distributing OxycodoneRead the Press Release
GREENEVILLE, Tenn. – On May 5, 2014, Harold Williams, of Philadelphia, Pa., was sentenced to serve 92 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge. Upon his release from prison, Williams will be subject to supervised release for six years.
In September 2013 Williams pleaded guilty to conspiring to distribute oxycodone in Hamblen County, Tenn. Williams brought oxycodone from Philadelphia to East Tennessee. An undercover investigation culminated with the April 2013 arrest of Williams and another individual, who were traveling in a rented Ford Explorer. A search of the vehicle led to the seizure of over 1,600 oxycodone tablets. The sentencing of Williams brings to a close the prosecution of this drug conspiracy which included local residents Samuel Webb, Jason Hill, Diana Briggs Shultz and Wendy Jefferson. Together, Williams and these individuals distributed more than 10,000 oxycodone tablets in Hamblen County.
U.S. Attorney, William C. Killian noted, “abuse of oxycodone has reached epidemic proportions in East Tennessee. The U.S Attorney’s Office will continue to prosecute these cases in order to combat this influx of drug crime into our communities.”
Law enforcement agencies participating in the joint investigation included the Hamblen County Sheriff’s Office and Federal Bureau of Investigation. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
Former CEO of Publicly Traded Company Sentenced in Securities Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Richard Altomare, 65, of Palm Beach County, was sentenced yesterday for his participation in a securities fraud “pump and dump” scheme. Altomare was sentenced to 37 months in prison, to be followed by three years of supervised release.
On February 21, 2014, a federal jury in Fort Lauderdale convicted Altomare on four counts, including one count of mail fraud and three counts of securities fraud.
According to the indictment and evidence presented during the trial, Altomare was the former CEO of Universal Express, Inc. Between 2000 and 2003, Altomare and other company insiders sold 500 million unregistered shares of Universal stock to the public, and then issued a series of false press releases in order to offset the resultant negative pressure on the stock price. On March 8, 2007, a Final Judgment in a civil action brought by the Securities and Exchange Commission was entered against Altomare. Among other things, the order prohibited Altomare from “participating in an offering of penny stock, including engaging in activities with a broker, dealer, or issuer for the purposes of issuing, trading or inducing or attempting to induce the purchase or sale of any penny stock.”
Despite the order, Altomare persuaded a start-up financial services firm based in Jacksonville called Sunset Brands, Inc. (SSBN), whose shares traded on the over the counter “penny stock” market, to bring him in as a consultant to attract investors and help write their press releases. Instead, Altomare used his access to the company to carry out a “pump and dump” scheme to defraud investors. In early 2013, Altomare met with a former business associate and conceived a scheme to artificially inflate the share price and trading volume of SSBN stock to enrich himself and his associate. Unbeknownst to Altomare, his former associate had become an informant for the FBI. During recorded conversations and meetings with the informant, Altomare promised to compensate him with SSBN stock to induce his cooperation in the scheme. Altomare’s plan was to have his former associate purchase shares of SSBN stock to mislead investors into believing that SSBN's share price was rising, and that there was a public market for SSBN stock. Altomare also used his access to SSBN’s press releases to further the scheme. Altomare agreed to cause SSBN, which was unaware of his plans, to issue positive press releases about the company to follow and coincide with the illegally induced purchasing by the informant. The purpose of the press releases was to make it appear that SSBN’s stock price was rising because of the positive news, and to conceal the market manipulation scheme from regulatory authorities. Altomare’s plan was to sell, or “dump,” the stock he and the informant controlled after the share price had been artificially inflated, and then split the proceeds with the informant.
Mr. Ferrer commended the investigative efforts of the FBI, and the assistance of the Miami Regional Office of the Securities and Exchange Commission. The case was prosecuted by Assistant U.S. Attorneys Alejandro O. Soto and Kevin J. Larsen.
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.