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5 May 2014
UPS Employee Charged with Using Clearance to Ship Drugs Through AirportsRead the Press Release
BROWNSVILLE, Texas – A 10-count federal indictment has been unsealed following the arrest of three Brownsville residents for conspiring to possess with intent to distribute marijuana, announced United States Attorney Kenneth Magidson along with Stephen Whipple, acting special agent in charge of the Drug Enforcement Administration (DEA), and Lucy Cruz, special agent in charge of Internal Revenue Service - Criminal Investigation (IRS-CI).
The indictment was returned under seal April 22, 2014, and unsealed today upon the appearances of Mario Enrique Patlan, 44, his daughter Cristina Patlan, 22, and Reymundo Abel Brown Jr., 26, before U.S. Magistrate Judge Ronald G. Morgan. At that time, they were temporarily ordered into custody pending detention hearings set for May 8, 2014.
Mario Patlan is charged with allegedly using his security credentials and position at United Parcel Service (UPS) in order to move drugs through local airports.
“Those that violate the security entrusted to them and bypass normal screening processes that are designed to protect our shipping and transportations systems is something we do not take lightly,” said Magidson. “We will vigorously prosecute anyone we believe has attempted to engage in any criminal behavior that could potentially pose a threat to our national security.”
All are charged with conspiracy to possess with intent to distribute controlled substances. Mario Patlan is also charged with attempted possession of controlled substances with the intent to distribute, substantive drug offenses as well as three counts of making false statements to federally insured banks. Brown is also charged with attempted possession of controlled substances with the intent to distribute, while Cristina Patlan is named in substantive drug offenses.
Mario Patlan and Brown were UPS employees during the course of the drug conspiracy, according to pleadings filed in the case and worked at UPS facilities operating in Cameron County that shipped parcel through Valley International Airport in Harlingen and Miller International Airport in McAllen.
Mario Patlan held a Secure Identification Display Area (SIDA) badge issued by the Transportation Security Administration (TSA) which allows access to commercial aircraft in restricted areas of the airport, according to records. Mario Patlan allegedly used this special security status to load UPS parcels packed with illegal drugs onto commercial aircraft for shipment out of the Rio Grande Valley. Brown allegedly assisted Mario Patlan.
According to the allegations, Cristina Patlan served as a recruiter for the conspiracy. She allegedly sought the business of drug traffickers who wanted to move marijuana via UPS facilities for a fee, typically $50 - $100 per pound. Destinations for the parcels included Michigan, Indiana, Pennsylvania, Georgia, Florida, Ohio, New York and other locations in the interior of the U.S. Government pleadings suggest one conspirator alone shipped approximately 1,000 pounds or more of marijuana in this manner.
Mario Patlan is also accused of making false statements to get loans from banks to purchase vehicles.
If convicted of the conspiracy, all face up to 40 years in federal prison and a potential $5 million fine. The other drug charges carry either up to five or up to 40 years as possible punishment and more potential fines. Mario Patlan also faces up to 30 years in federal imprisonment on each of the making false statements, upon conviction, as well as a possible $1 million fine. The indictment also includes a notice of forfeiture of a residence and $1 million.
The multi-year investigation was conducted by DEA and IRS-CI with the assistance of Border Patrol and UPS. The case is being prosecuted by Assistant United States Attorneys Charles Lewis, David A. Lindenmuth and Carrie Wirsing.
Two Men Plead Guilty in Separate Child Exploitation CasesRead the Press Release
FRESNO, Calif. — Two men pleaded guilty to offenses involving material related to the sexual exploitation of minors in separate cases in federal court today, United States Attorney Benjamin B. Wagner announced.
Aaron Lewis Gaudinier, 50, of Madera, pleaded guilty before United States District Judge Lawrence J. O’Neill to one count of receipt and distribution of child pornography. According to a plea agreement, on dates between December 14, 2011, and February 4, 2012, Gaudinier knowingly received and distributed more than 600 images of minors engaged in sexually explicit conduct. Some of the images were of prepubescent minors and some images depicted violence. Gaudinier has been detained as a danger to the community and flight risk since his initial appearance on February 15, 2012.
Gaudinier will be sentenced on July 21, 2014, at which time he faces potential punishments of 20 years imprisonment, a lifetime term of supervised release, a $250,000 fine, and a mandatory $100 penalty assessment. The actual sentence imposed, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines. This case is the result of an investigation by the Central California Internet Crimes Against Children Task Force, specifically the Madera and Fresno County Sheriff’s Offices, the Tulare Police Department, and the Fresno office of U.S. Immigration and Customs Enforcement. Case 1:12-cr-00057-LJO-SKO.Lorenzo Hernandez Martinez, 37, of Bishop, pleaded guilty before United States District Judge Lawrence J. O’Neill to one count of attempted transfer of obscene material to a minor. According to court documents, Martinez communicated through Facebook chats from mid-October 2013 through February 2014 with someone whom he believed to a 14-year-old female in Oregon. Martinez quickly turned the communications in a sexual direction, and he repeatedly transmitted explicit images. In fact, Martinez was communicating with an undercover detective in Corvallis, Oregon. The Corvallis Police Department worked with the Bishop Police Department and the Bakersfield FBI office to identify the defendant. When a search warrant was executed at his residence in Bishop on March 11, 2014, agents seized a cellular telephone that contained communications with the undercover detective in Oregon as well as sexually explicit images that Martinez said he had transmitted to minors, including a minor female in China. Because he has resided in the United States without legal authorization for the past 18 years, Martinez also agreed not to challenge his removal from the United States.
Martinez is scheduled to be sentenced on July 21, 2014. He faces a maximum prison term of 10 years, a potential fine of $250,000, and a three-year term of supervised release. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines. Case 1:14-cr-053-LJO-SKO.Assistant United States Attorney David Gappa is prosecuting these two cases. They have been 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety education.
Two Huntington Men Plead Guilty to Federal Heroin ChargesRead the Press Release
HUNTINGTON, W.Va. – Two men pleaded guilty today in federal court to distributing heroin in Huntington, announced U.S. Attorney Booth Goodwin. Demetrius D. Taylor, 33, and Loveil L. Wade, 31, pleaded guilty to heroin distribution before Judge Robert C. Chambers, United States Chief Judge for the Southern District of West Virginia. Both men were investigated by the Huntington Violent Crime and Drug Task Force for drug distribution. In January, 2014, task force agents recorded the men selling heroin to a cooperating individual. Both men have previously been convicted of federal drug trafficking crimes. Thomas was on federal supervised release for his prior drug trafficking offense. Thomas and Wade each face up to 20 years in prison when they are sentenced on August 4, 2014.
The Huntington Violent Crime and Drug Task Force conducted the investigation. Special Assistant United States Attorney Sharon Frazier handled the prosecution.
Todd County, Kentucky Man Sentenced to 30 Months in Prison for Selling MarijuanaRead the Press Release
– 452 pounds of processed marijuana recovered at his Elkton home
BOWLING GREEN, Ky. – A Todd County, Kentucky man was sentenced to 30 month in prison followed by three years of supervised release by Senior District Judge Thomas B. Russell on May 2, 2014, for the manufacture, possession and distribution of marijuana announced David J. Hale, United States Attorney for the Western District of Kentucky.
Mervin Sears, age 64, of Elkton, Kentucky pleaded guilty to a two count federal indictment on August 6, 2013. Sears admitted in court that on January 8, 2013, he knowingly and intentionally sold approximately three pounds of marijuana to a confidential informant for $4500. The transaction was monitored and recorded by law enforcement officers from the Kentucky State Police and the South Central Kentucky Drug Task Force. A search warrant for the defendant's property in Elkton resulted in 307 marijuana plants and 452 pounds of processed marijuana being seized. Also, the search revealed $16,349.00 in U.S. currency, 10 firearms, indoor grow equipment and assorted drug paraphernalia including scales and baggies.
In addition to the prison term, Sears agreed to pay the United States $120,000 (in lieu of forfeiture of his residence), and to forfeit $16,000 in cash seized during his arrest, as well as numerous vehicles and firearms, with all forfeiture proceeds to be divided among the law enforcement agencies involved in the investigation.
This case was prosecuted by Assistant United States Attorney Larry Fentress and was investigated by KSP DESI West and South Central Kentucky Drug Task Force. KSP Post 2 and Pennyrile Narcotics task force assisted with the search.
Seven Indicted and Arrested in Dogfight Gambling EnterpriseRead the Press Release
U.S. Attorney Michael J. Moore announced today that Arthur Lee Clark, age 41, of Sumner, Georgia; Demitri Jackson, age 37; Tedrick Jackson, age 38; William Burns, age 41; Otha Hopkins, age 47, all of Albany, Georgia; Timothy Hopkins, age 41, of Hiram, Georgia; and Michael Bass, age 40, of Ashburn, Georgia were indicted for one count of conspiracy to travel in interstate commerce in aid of unlawful activities and to sponsor a dog in an animal fighting venture and three counts of sponsoring and exhibiting a dog in an animal fighting venture.According to the indictment, the defendants operated a dogfight gambling enterprise, named “229 Boys Kennels, Inc.”, from about April 2006 to April 2010 in Albany, Georgia. The defendants produced, promoted and participated in dogfight gambling shows throughout the Southeast, including other parts of Georgia and Florida. The defendants bred, purchased, sold, and trained American Pit Bull Terriers for the purposes of dogfight gambling. The dogs were bred with dogs owned by, purchased from, and sold to individuals from other parts of Georgia, Florida, Alabama, South Carolina and North Carolina.
The indictment further alleges that “229 Boys Kennels, Inc.” advertised and promoted the prowess of “229 Boys Kennels, Inc.” canine stock through online websites and publications and word of mouth to increase the value of “229 Boys Kennels, Inc.” stock for sale and to increase prize amounts for matches at dogfight gambling shows. Dogs not selected to continue fighting in “229 Boys Kennels, Inc.” were exterminated by bludgeoning them in the head with a hammer, slamming them on the ground until dead, and by other inhumane methods.
On April 30, 2014, all seven individuals were arrested through the cooperative effort of the Georgia Bureau of Investigation, Sylvester and Americus Field Offices; U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Department of Agriculture Office of Inspector General; U.S. Marshals Service; and Albany Police Department. A search warrant executed on the day of the arrests yielded 42 American Pit Bull Terriers being used for the purposes of dogfight gambling.
If convicted, the seven individuals face a maximum penalty of five years imprisonment and a fine of up to $250,000, or both.
An indictment is only an allegation and the accused are presumed innocent until and unless proven guilty.
The indictment was the result of a four-year investigation conducted by the Georgia Bureau of Investigation, Sylvester; U.S. Department of Agriculture Office of Inspector General; and U.S. Bureau of Alcohol, Tobacco and Firearms. Assistant U.S. Attorney Julia C. Bowen is prosecuting the case for the Government.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Seven Face Federal Charges in Rocky Mount Heroin Distribution RingRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announces that a federal grand jury in Wilmington, North Carolina returned a 14 count indictment charging CEDRIC SHARROD WILLIAMS, DERRICK LAMONT HANNON, HERMAN LEE COLEY, III, MARY SHANTA ELLIS, JERRY KEITH PITTMAN, JR., JOSEPH LAMAR NORRIS, and ALONZO KEITH CARTER with conspiring to distribute and to possess with the intent to distribute heroin, a Schedule I controlled substance, in violation of the provisions of Title 21, United States Code, Sections 841(a)(1) and 846. Additionally, WILLIAMS is charged with 3 counts of knowingly possessing a firearm in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c)(1)(A).
Mr. Walker remarked, “This investigation shows that local and federal law enforcement are committed to investigating and prosecuting heroin trafficking in Rocky Mount, NC.”
"We are committed to interrupting and apprehending the individuals that distribute heroin in Rocky Mount," stated Chief James Moore.
The investigation revealed that beginning on a date unknown and continuing until or about February 3, 2014, these individuals conspired with one another to distribute large quantities of heroin from New Jersey to Rocky Mount, NC.
If convicted, the maximum penalties for the charged drug counts are not more than 40 years imprisonment, a $5 million fine, and a term of supervised release of not less than 4 years, following any term on of imprisonment. The maximum penalties for the charged gun counts are not less than 25 years of imprisonment, consecutive to any other sentence imposed, a $250,000 fine, and up to 5 years supervised release following any term of imprisonment.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty in a court of law. The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Rocky Mount Police Department, and the Nash County Sheriff’s Office.
Se Incoaron Cargos Federales De Delincuencia Organizada E Intento De Asesinato Contra Lideres Y Asociados De La Pandilla Nuestra FamiliaRead the Press Release
FRESNO, California. — Se reveló hoy una segunda acusación sustitutiva añadiendo 19 cargos incluyendo conspiración de delincuencia organizada e intento de asesinato contra tres demandados por su supuesta participación en la violenta pandilla Nuestra Familia, anunciaron David A. O’Neil, ayudante interino del procurador general de la División Criminal del Departamento de Justicia y Benjamin B. Wagner, procurador federal.
“Este caso tan complejo identificó la red que se extiende màs allà de los canales de distribución de drogas de la pandilla y reveló una estructura de mando que dirige actos de violencia para conseguir y mantener el control de sus miembros, independientemente de si los miembros pasean por las calles de Modesto o estàn encarcelados”, dijo Todd Irinaga, el agente especial supervisor de la oficina del FBI en Modesto. “Los cargos de hoy demuestran la eficacia del enfoque de una Fuerza de Tarea de Combate contra el Tràfico de Drogas y el Crimen Organizado (OCDETF), integrada por agencias y jurisdicciones múltiples para desmantelar organizaciones de tràfico de drogas que amenazan la seguridad y calidad de vida en nuestras comunidades”.
Gary Anthony Romero, 48, de Stockton, y Joe Anthony Félix, 34, de Modesto, fueron acusados inicialmente de conspiración para distribuir y poseer metanfetaminas con intenciones de distribuir ante un gran jurado federal en Fresno. La acusación sustitutiva, devuelta bajo sello el 30 de abril de 2014, incluye todos los presuntos cargos en la acusación original, así como nuevos cargos contra ellos. También fue acusado Jesús Gómez Félix, 30, de Modesto.
Jesús Félix fue arrestado hoy e hizo su primera comparecencia ante el tribunal federal en Fresno. Romero y Joe Félix fueron procesados hoy por los cargos en Fresno. Han estado bajo custodia federal desde marzo de 2013.
De acuerdo con la acusación sustitutiva, Nuestra Familia es una pandilla en prisión que se formó originalmente en el sistema estatal de prisiones de California en la década de 1960. Los líderes de Nuestra Familia controlan y dirigen las actividades criminales de la pandilla, tanto dentro como fuera del sistema de prisiones.
De acuerdo con la acusación sustitutiva, Romero ha sido miembro de Nuestra Familia durante unos 20 años y ha alcanzado uno de los niveles màs altos de autoridad en Nuestra Familia. Presuntamente ordenó que se cometieran varios delitos para el beneficio de la pandilla en el Condado Stanislaus, incluyendo intentos de asesinato, asaltos, robos y tràfico de drogas. Romero està acusado de conspiración de delincuencia organizada; seis cargos de intento de asesinato y seis cargos de asalto con un arma peligrosa, todos en apoyo de la delincuencia organizada; un cargo de usar y descargar un arma de fuego durante un delito de violencia y un cargo de conspiración para distribuir metanfetaminas.
Joe Félix llegó a ser un líder de Nuestra Familia en el Condado Stanislaus en 2012 y presuntamente ordenó a miembros de la pandilla que cometieran asesinatos y traficaran en drogas en Modesto. Joe Félix es acusado de conspiración de delincuencia organizada; un cargo de intento de asesinato, un cargo de conspiración para cometer un asesinato, y un cargo de asalto con un arma peligrosa, todos en apoyo de la delincuencia organizada; un cargo de usar y descargar un arma de fuego durante un delito de violencia; y un cargo de conspiración para distribuir metanfetaminas.
Jesús Félix està acusado con un cargo de asalto con un arma peligrosa resultando en lesión corporal grave en apoyo de la delincuencia organizada y un cargo de usar y descargar un arma de fuego durante un delito de violencia.
Este caso fue investigado por el Fuerza de Tarea contra el efecto de las pandillas en Central Valley, bajo la Iniciativa de Calles Seguras del FBI, con la asistencia de la Oficina del Fiscal del Condado de Stanislaus, la Oficina del Alguacil del Condado de Stanislaus, el Departamento de Policía de Modesto, Departamento de Policía de Ceres, la Patrulla de Carreteras de California, el Departamento de Correcciones y Rehabilitación de California, la Oficina de Prisiones y el Departamento de Libertad Condicional del Condado de Stanislaus.
El caso està siendo procesado por el abogado criminalista Louis A. Crisóstomo de la Sección de Delincuencia Organizada y Pandillas de la División Criminal y por Kimberly A. Sànchez y Laurel J. Montoya, ayudantes del procurador federal para el Distrito Oriental de California.Los cargos contenidos en la acusación son meramente acusaciones, y se presume que los demandados son inocentes a menos y hasta que se pruebe que son culpables. Si se les condena, cada demandado contempla una condena estatutaria màxima de cadena perpetua y una multa de $250,000. Cualquier sentencia, sin embargo, serà determinada a discreción del tribunal después de considerar cualquier factor estatutario aplicable y las Directrices Federales de Sentencias, que toman en consideración un número de variables.
Raleigh Man Pleads Guilty to Child Pornography ChargeRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today, PAUL FANTZ, 31, pled guilty before Senior United States District Judge W. Earl Britt to receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2), during his arraignment.
On March 5, 2014, a Criminal Information was filed charging FANTZ with the violation.
According to the investigation, FANTZ was seen attempting to videotape a child in the men’s restroom at the North Carolina State Fair in October, 2013. He was stopped and questioned by Wake County Sheriff deputies. After admitting to the violation, FANTZ was placed under arrest and a search warrant was obtained for his IPhone and laptop. Forensic examination revealed at least 100 videos of boys urinating. Another 100 videos were discovered of child pornography on the laptop.
At sentencing, scheduled for September 8, 2014, FANTZ faces up to 20 years imprisonment. 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 children pornography, the penalty increases to up to 40 years imprisonment.
Investigation of this case was conducted by the Wake County Sheriff’s Office and the Federal Bureau of Investigation. Assistant United States Attorney Ethan Ontjes prosecuted the case for the United States.
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.
President of Middlesex County, N.J., Investment Company Admits Defrauding InvestorsRead the Press Release
NEWARK, N.J. – The former president of a Middlesex County, N.J., investment company today admitted he defrauded investors out of more than $250,000, U.S. Attorney Paul J. Fishman announced.
Shreyans Desai, 27, of Edison, president of Shreysiddh Capital LLC, located in Iselin, N.J., pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to Counts One and Two of a superseding indictment charging him with wire fraud. The third count in the indictment, securities fraud, will be dismissed after Desai is sentenced.
According to documents filed in this case and statements made in court: Desai misled a number of investors about his licensing status and the registration status of the company to induce them to entrust their money to him so that he could trade securities on their behalf. Desai then sought to retain control of the funds by providing investors with an inflated value of their investments, and also inflated the amount of commissions he purportedly earned through trading those funds.The wire fraud counts to which Desai pleaded guilty each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for August 13, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Jane H. Yoon and Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
14-151
Defense counsel: Alyssa A. Cimino Esq., Fairfield, N.J.
Desai, Shreyans Indictment
Payette Man Pleads Guilty to Unlawfully Purchasing A Firearm for Convicted FelonRead the Press Release
BOISE – Caleb Matthias Curtis, 29, of Payette, Idaho, pleaded guilty today to one count of unlawful transfer of a firearm, U.S. Attorney Wendy J. Olson announced. Curtis was indicted by a federal grand Jury in Boise on November 13, 2013.
According to the plea agreement, Curtis admitted that in October of 2013, he agreed to purchase a firearm for David McAlister. Curtis purchased a Winchester .30-06 rifle from the World’s Smallest Pawn Shop in Payette with money given to him by McAlister. At the time Curtis transferred the firearm to McAlister, he was aware that McAlister had previously been convicted of a crime punishable by more than one year imprisonment. McAlister was convicted of statutory rape in 2003 in Canyon County, Idaho.
The charge of unlawful transfer of a firearm is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set on July 28, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise. David McAlister pled guilty to unlawful possession of firearms on March 3, 2014. His sentencing before Judge Lodge is set for June 30, 2014.
The case was investigated by the Payette Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Partner in Liquor Store Businesses Sentenced to 21 Months in Prison for Embezzling More Than $300,000Read the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PETER TURNER, 58, of Burlington, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 21 months of imprisonment, followed by three years of supervised release, for embezzling more than $300,000.
According to court documents and statements made in court, TURNER was the managing partner of Two Buck Ring, LLC, a nine-member LLC that is the majority stake holder of The Bridge Fine Wine Spirits & Beer in New Milford. He also was a member of Spirited Endeavor, LLC, a 13-member LLC that does business as Town Line Fine Wine, Spirits & Beer in Stratford. As managing partner of Two Buck Ring (“TBR”), TURNER was responsible for the day-to-day operation of The Bridge Fine Wine Spirits & Beer and had access to the TBR business accounts.
Between November 2010 and February 2012, TURNER, without the authority of other TBR members, wrote numerous checks from the TBR business accounts to himself and used the money for various personal expenses. TURNER also prepared and disseminated to investors a fraudulent ledger in an effort to conceal his fraud.
Through this scheme, TURNER embezzled approximately $322,500.
TURNER was ordered to make full restitution.
On November 1, 2013, TURNER pleaded guilty to one count of wire fraud.
This investigation was conducted by the Connecticut Financial Crimes Task Force, which includes members of the U.S. Secret Service, U.S. Postal Inspection Service, U.S. Department of State, Bureau of Diplomatic Security, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police, and the Greenwich, Hartford, Stamford, Shelton and Stratford Police Departments. U.S. Attorney Daly specifically recognized the efforts of the Greenwich Police Department for its assistance in the investigation and prosecution of this matter.
This case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
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(203) 821-3722 [email protected]Online Clothing Business Owners Sentenced for Customs Fraud, Money LaunderingRead the Press Release
FRESNO, Calif. – Husband and wife, Hoang Minh Nguyen, 32, and Dung Hang Dao, 32, of San Jose, were sentenced today by United States District Judge Lawrence J. O’Neill to 12 months of time-served and ordered to pay $70,000 in restitution for customs fraud and money laundering, United States Attorney Benjamin B. Wagner announced. The defendants also agreed to forfeit bank accounts and a property valued at more than $400,000.
According to court documents, from November 2008 through January 2013, Nguyen and Dao owned an online clothing company that utilized several websites to sell clothing imported from China to customers in the United States. As part of their scheme, Nguyen and Dao declared the imported clothing as samples even though they would later sell it to customers. By declaring the clothing as samples, Nguyen and Dao were able to avoid paying customs duties.
With the proceeds from their business, Nguyen and Dao sent significant amounts of cash to China via Western Union money transfers. They broke up the cash deposits to Western Union agents into amounts of $10,000 or less in an attempt to prevent Western Union from filing Currency Transaction Reports on those transactions, in violation of the Bank Secrecy Act. In addition, Nguyen and Dao laundered the proceeds of their business by purchasing properties in Patterson and San Jose. Nguyen and Dao pleaded guilty to the charges on February 12, 2014.
“Commercial smuggling schemes like this not only rob the government of vital revenues, they also undermine the economy and penalize businesses that follow the rules,” said Mike Prado, resident agent in charge of HSI Fresno. “We will continue to vigorously prosecute those unscrupulous importers who gain an unfair advantage.”This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Internal Revenue Service – Criminal Investigation, and the Central California Financial Crimes Task Force. Assistant United States Attorney Grant B. Rabenn prosecuted the case.
Ohio Man Admits Possessing Pills and Heroin to Distribute in Rand AreaRead the Press Release
CHARLESTON, W.Va. – Joseph Lee Church, 36, of Columbus, Ohio, pleaded guilty today in federal court in Charleston to possessing various controlled substances with the intent of selling them in the Rand, West Virginia area. Church admitted that a backpack seized from him by Kanawha County Deputy Sheriff Jason Mace on December 10, 2011, in Rand, contained prescription medication and heroin which he intended to sell in the area. The backpack was found to contain heroin, which is a Schedule I controlled substance, as well as various prescription pills, including hydromorphone, amphetamine, oxycodone and hydrocodone, which are Schedule II and III controlled substances.
Church faces up to 20 years’ imprisonment and a $1,000,000 fine when he is sentenced August 12, 2014. United States District Judge Thomas E. Johnston conducted today’s plea hearing.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Newport Chiropractor Convicted of Health Care Fraud ConspiracyRead the Press Release
COVINGTON, KY - – The owner of a chiropractic clinic in Newport, Ky., has been convicted of a fraud scheme involving tens of thousands of dollars.
A federal jury in Covington convicted 48-year-old Andrea Almond, of Cincinnati, Ohio, of conspiracy to commit health care fraud, late Friday afternoon. The jury returned the verdict after four days of trial, following six hours of deliberation.
According to evidence established at trial, from September 2008 through April 2010, Almond conspired with a co-defendant to bill the Kentucky Medicaid Program for chiropractic services rendered at the Newport Chiropractic Center.
The evidence, however, also established that Almond never actually practiced at the Newport Chiropractic Center; the billed services were instead provided by other doctors, who had never been approved or enrolled in Kentucky Medicaid Program.
Almond billed the Kentucky Medicaid Program using her National Provider Identification number, knowing that the Kentucky Medicaid Program would not have paid for any claims for treatment rendered by unapproved providers.
The government proved that Almond and her co-conspirator fraudulently submitted approximately 1,943 claims to the Kentucky Medicaid Program, which totaled $483,797, and they received $95,098 in payments.
Her co-conspirator, Elaine Legg, has already pled guilty in the case. In a separate case, Dr. Nanci Allen, a former part owner in the Erlanger Chiropractic Clinic, has pled guilty to a similar scheme to defraud the Kentucky Medicaid Program. These individuals are also awaiting sentencing.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, Perrye Turner, Special Agent in Charge, Federal Bureau of Investigation; Dugan Wong, Postal Inspector in Charge, United States Postal Inspection Service, Pittsburg Field Division; and Jack Conway, Kentucky Attorney General, jointly made the announcement today.
The investigation was conducted by the Federal Bureau of Investigation; the United States Postal Inspection Service, Cincinnati Field Office; the Kentucky Attorney General’s Office, Medicaid Fraud Abuse and Control Unit; and the Kentucky Department for Medicaid Services. The federal government was represented by Assistant United States Attorney Laura K. Voorhees.
Almond will appear for sentencing on September 4, 2014. She faces a maximum of 10 years in prison. However, any sentence following a conviction will be imposed after the Court considers the U.S. Sentencing Guidelines and the applicable federal statutes.
New York Resident Charged in Federal Court in Rhode Island with Allegedly Using Stolen Identities and Fraudulent Credit Cards to Purchase over $156,000 Worth of Gift CardsRead the Press Release
PROVIDENCE, R.I. – Yvener Jean-Baptiste, 27, of Brooklyn, N.Y., has been charged in federal court in Providence, R.I., with allegedly obtaining more than $156,000 in Target and Wal-Mart gift cards by allegedly using stolen identities and fraudulent credit cards, announced United States Attorney Peter F. Neronha, Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service, and Lincoln Police Chief Brian W. Sullivan.
According to an affidavit in support of an arrest warrant filed with the court, it is alleged that on at least five occasions between November 1 and November 30, 2013, Jean-Baptiste purchased gift cards totaling $156,157.62 at Target stores in Lincoln, the Warwick Mall and on Bald Hill Road in Warwick, and at a Wal-Mart store in Warwick. The purchases were allegedly made using counterfeit credit cards with account numbers belonging to other individuals. The alleged purchases were made without the knowledge or permission of the credit card owners.
According to the affidavit, Jean-Baptiste returned to the Target store in Lincoln on November 30, 2013, one day after he and another person allegedly purchased $75,894.01 worth of Target gift cards using 6 counterfeit credit cards. He allegedly returned to the store in a vehicle previously identified by a Target employee as being driven by the individuals who allegedly committed credit card fraud the previous day. A search of the vehicle by Lincoln Police resulted in the seizure of 10 counterfeit credit cards, a counterfeit driver’s license and multiple Target gift cards.
According to the affidavit, the investigation into Jean-Baptiste’s alleged fraudulent activities resulted in the discovery of additional purchases of gift cards using fraudulent credit cards on November 1, 2013, at Target stores at the Warwick Mall and on Bald Hill Road in Warwick, and on November 22, 2013, at the Target store at the Warwick Mall and at a Wal-Mart store in Warwick.
According to the affidavit, during an interview with Lincoln Police, Jean-Baptiste allegedly told police that he typically received $200 for every $800 fraudulent transaction he conducted. Jean-Baptiste told police he provided the gift cards to another individual in New York.
Yvener Jean-Baptiste has been charged by way of a criminal complaint with one count each of credit card fraud and aggravated identity theft. Not guilty pleas were entered during his initial appearance on May 1, 2013, before U.S. District Court Magistrate Judge Lincoln D. Almond. Jean-Baptiste was release to home confinement with electronic monitoring and $100,000 bond.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Credit card fraud is punishable by a statutory penalty up to 10 years in federal prison and a fine of up to $250,000. Aggravated identity theft is punishable by a mandatory penalty of 2 years in federal prison, consecutive to all other terms of imprisonment imposed.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]New Jersey Man Sentenced for Brutal Attack in National ParkRead the Press Release
PHILADELPHIA - Santos Centeno, 47, of Camden, New Jersey, was sentenced today to 15 years in prison for random muggings near Philadelphia’s Independence Hall. On June 15, 2012, Centeno and his nephew, Baldwin Centeno, were standing on 4th Street at National Independence Park when the victim approached them. The victim’s car was missing and he was asking for help when Centeno and his nephew began beating him for no reason. The victim suffered traumatic brain injuries, facial fractures, and other serious injuries for which he required hospitalization. A jury convicted the pair of assault resulting in serious bodily injury and assault by striking, beating, or wounding. In another incident, Centeno mugged a couple, walking near the park, of their cell phone and money. He was also convicted in that assault. His nephew was sentenced in April to 57 months in prison.
In addition to the prison term, U.S. District Court Judge Juan R. Sanchez ordered three years of supervised release, $6,461 restitution, and a $220 special assessment.
The case was investigated by the Philadelphia Police Department and the National Park Service, United States Department of the Interior. It is being prosecuted by Assistant United States Attorney Denise S. Wolf.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Nampa Man Admits Unlawfully Possessing A FirearmRead the Press Release
BOISE – Juan Jose Sanchez, 23, of Nampa, Idaho, pleaded guilty today in United States District Court to one count of unlawfully possessing a firearm, U.S. Attorney Wendy J. Olson announced.
According to information presented in court, officers with the Nampa Police Department contacted Sanchez on January 14, 2014, when they responded to a complaint at a residence in Nampa. When officers spoke to Sanchez they discovered that he had a loaded handgun tucked in the front of his waistband. Officers seized the handgun and identified it as an H&R, 9-shot, .22 caliber revolver.Sanchez is prohibited from possessing firearms because he was previously convicted of the felony crime of aggravated battery on September 7, 2011, in Canyon County, Idaho. Sanchez was still on parole at the time he possessed the .22 revolver.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release. The government is seeking forfeiture of the firearm.
Sanchez is scheduled to be sentenced on July 21, 2014, by Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Nampa Police Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Treasure Valley Metro Violent Crimes Task Force. The Metro Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
Sanchez is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Mountain Home Man Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
Admitted sexual contact with prepubescent minors
BOISE - Christopher James Swicegood, 22, of Mountain Home, Idaho, pleaded guilty in U.S. District Court today to Possession of Sexually Explicit Images of Prepubescent Minors, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, the investigation began in January 2013, when U.S. Immigration and Customs Enforcement investigators followed a lead provided by a foreign government concerning users of a website used extensively by persons interested in exchanging child pornography. Investigators obtained a search warrant for the home Swicegood shared with others in Mountain Home and found images and videos of prepubescent minors being sexually abused on a computer and hard drive Swicegood owned. Swicegood admitted that he had posted child pornography on the foreign website and that he had traded child pornography with other users of the foreign website.
The National Center for Missing and Exploited Children examined the material found on Swicegood’s media and identified 230 image files from 57 known child pornography series, and 30 videos from 14 separate child pornography series. Each series represents a different minor victim or group of minor victims being sexually abused. These victims come from a variety of states of the United States and many foreign countries.
Also according to the plea agreement, Swicegood admitted sexual interactions, including sexual touching, with at least three different minor children in the Mountain Home area. Swicegood is currently incarcerated in the Elmore County jail, awaiting trial for a charge of Lewd or Lascivious Acts on a Minor Child under the age of 16 years.
The charge of Possession of Sexually Explicit Images of Prepubescent Minors is punishable by up to 20 years in prison, a maximum fine of $250,000 and from 5 years up to lifetime-supervised release.
Sentencing is set is before U.S. District Judge B. Lynn Winmill on July 22, 2014, at the federal courthouse in Boise.
The case was investigated by the Department of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), which is a member of the Idaho Internet Crimes Against Children (ICAC) Task Force, a statewide coalition of local, state and federal law enforcement and prosecution agencies, focused on apprehending and prosecuting individuals who use the Internet to criminally exploit children. For more information about the Idaho ICAC Task Force and a list of all the participating agencies, visit www.icacidaho.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Middleport Woman Sentenced for Wire Fraud and Filing False Tax ReturnsRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Linda Rakonczay, 58, of Middleport, N.Y., who was convicted of wire fraud and filing false tax returns, was sentenced to 24 months in prison by Chief U.S. District Judge William M. Skretny. The defendant was also ordered to pay $93,999 in restitution to the Internal Revenue Service and $499,563 in restitution to Orleans Community Health.
Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that the defendant worked as a payroll coordinator for Orleans Community Health in Medina, N.Y. Beginning in 2001 and continuing through 2012, Rakonczay prepared and submitted reports to the organization’s bank instructing the bank to electronically transfer money from the corporate bank account to her personal bank account. The amount transferred from the organization’s bank account to the defendant’s account totaled $499,563. For tax years 2007 through 2012, Rakonczay failed to report such income and failed to pay federal taxes to the Internal Revenue Service totaling nearly $94,000.
The sentencing is the result of an investigation on the part of Special Agents of Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigations Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.Men from California and Texas to Serve Lengthy Federal Prison Sentences for Kidnapping Man in El Paso, TexasRead the Press Release
ALBUQUERQUE – Brandon Lawrence Jones, 36, of San Diego, Calif., and Jesus Manuel Gallegos, 42, of El Paso, Texas, were sentenced today for their federal kidnapping convictions. Jones was sentenced to 35 years in prison while Gallegos was sentenced to 30 years in prison. Each man will be on supervised release for five years after completing his prison sentence. Jones and Gallegos jointly were ordered to pay $1,990 in restitution to the victim.
According to court records, on the night of Nov. 5, 2011, Jones and Gallegos carjacked and kidnapped a man as he was leaving a basketball game in El Paso, Texas. Using an air pistol that resembled semi-automatic pistol, Jones forced the victim to get into the passenger seat of his own vehicle. Thereafter, Gallegos joined Jones and the victim in the vehicle. After directing the victim to identify banks at which the victim maintained accounts, Jones took bank cards out of the victim’s wallet; forced the victim to reveal the PINs for his bank accounts; and withdrew cash from the victim’s bank accounts. During this time, Jones and Gallegos repeatedly struck the victim in the face and body with their fists.
Jones and Gallegos drove the vehicle from El Paso to Clines Corner, N.M. During one stop, they duct-taped the victim’s hands and feet, but later released him from the restraints when they realized that it might be hard to explain a restrained passenger as they crossed through the U.S. Border Patrol checkpoint at Hatch, N.M. During a stop in Albuquerque, N.M., Jones and Gallegos continued to use the victim’s bank card to withdraw money from the victim’s bank accounts. When they arrived at Clines Corner in the early morning of Nov. 6, 2011, Jones and Gallegos parked the vehicle at a truck stop and fell asleep. After ensuring that his kidnappers were asleep, the victim escaped from the vehicle and sought help from restaurant employees at the Clines Corner truck stop who called 911 and helped the victim contact family members in El Paso. Shortly thereafter, officers of the New Mexico State Police and Torrance County Sheriff's Office arrested Jones and Gallegos, who were still asleep in the victim’s vehicle.
When they were arrested on state charges, Jones was in possession of a wallet containing the victim’s driver's license, and Gallegos was in possession of one of the victim’s bank cards. In the vehicle, the officers found an air pistol, which looked like a semi-automatic pistol with a laser site, ATM receipts, and wads of used duct tape.
Jones and Gallegos were arrested on federal charges on Nov. 7, 2011, and have been in federal custody since that time. Jones entered his guilty plea to a kidnapping charge on Dec. 28, 2012, and Gallegos entered his guilty plea to a similar charge on Jan. 3, 2013. Both guilty pleas were entered without the benefit of plea agreements.
The case was investigated by the Albuquerque Division of the FBI, the New Mexico State Police and the Torrance County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorneys Charles L. Barth and William J. Pflugrath.
Man Sentenced for Piloting Commerical Ships on Great Lakes with Fraudulent Coast Guard LicenseRead the Press Release
SYRACUSE, NEW YORK - Richard S. Hartunian, United States Attorney for the Northern District of New York, announced today that Mark Anselm, 37, of Clayton, N.Y., was sentenced to seven years in prison before the U.S. District Judge Glen T. Suddaby after having pled guilty to six felony offenses that charged him with making false statements to officials of the United States Coast Guard, possession and use of an altered merchant marine license, and aggravated identity theft. In addition, Anselm was sentenced to three years of supervised release following his release from prison. While in prison and thereafter Anselm has been directed to submit to mental health counseling and treatment.
In pleading guilty, Anselm admitted that during 2011 and 2012 he held himself out to federal officials, to various marina owners, and to other potential employers as being a licensed commercial ship pilot when he possessed no such license. Anselm admitted to having repeatedly presented fraudulent merchant marine licenses to employers and potential employers that he had altered to substitute his name. With his false licenses, he gained employment and captained various commercial ships on Lake Ontario including operating a tour boat within the 1000 Islands. His criminal conduct was discovered by the Coast Guard after he grounded a tug boat in Canadian waters on June 19, 2012 that he falsely claimed he owned. The ensuring investigation revealed numerous instances of Anselm holding himself out as a licensed commercial merchant marine captain based upon licenses that he had forged.
This case was investigated by Special Agents of the Coast Guard Investigative Service, Buffalo Field Office and Department of Homeland Security, Office of the Inspector General. Prosecution is being handled by Assistant United States Attorney Craig A. Benedict. Mr. Benedict may be contacted for questions regarding this case at 315-448-0726.
Long Island Doctor Pleads Guilty to Distribution of OxycodoneRead the Press Release
Eric Jacobson, a Great Neck, New York, physician, pled guilty today in United States District Court for the Eastern District of New York, to 19 counts of the illegal distribution of the highly addictive painkiller oxycodone. When sentenced, Jacobson faces up to nine years in prison. The defendant previously relinquished his license to practice medicine.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, James J. Hunt, Acting Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Field Office, and Shantelle P. Kitchen, Acting Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, New York. The plea was entered before the Honorable Joseph F. Bianco at the United States Courthouse in Central Islip.
“Instead of providing needed medical services to his community, Dr. Jacobson directly contributed to the tragedy of prescription drug abuse that has swept across our district and our nation. Today’s conviction reflects our office’s continued commitment to ending the illegal distribution of prescription painkillers in our community, and should serve as a warning to those who would violate their oath as medical professionals to do no harm: if you illegally distribute prescription drugs, you will be held accountable,” stated United States Attorney Lynch. “I want to thank our partners at the DEA and the Internal Revenue Service for their outstanding work in investigating this case.”
Jacobson was arrested on June 6, 2012, as part of the Eastern District of New York’s Prescription Drug Initiative, led by the United States Attorney’s Office and the DEA, working with the Nassau County Police Department, the New York State Police, and numerous other local, state, and federal law enforcement agencies. He has been held in custody since the arrest.
The investigation revealed that, from December 2009 through June 2012, the defendant illegally distributed oxycodone to individuals he knew were either abusing or re-selling oxycodone pills to addicts. According to court filings, the defendant charged these individuals, known in the industry as “doctor-shoppers,” various amounts of money – in cash – for each prescription issued. The doctor-shoppers then either re-sold oxycodone to addicts and other users for profit or abused the pills themselves. During the execution of a federal search warrant at his office on December 1, 2011, Jacobson surrendered his DEA license authorizing him to prescribe controlled substances. Despite that surrender, Jacobson continued to engage in the illegal distribution of oxycodone by personally writing prescriptions following the surrender and then, used other healthcare professionals to continue to distribute drugs illegally. Pursuant to his plea agreement with the government, Jacobson agreed to forfeit $250,000 in money and property representing the illegal narcotics proceeds he earned as a result of his illegal distribution of oxycodone.
The Prescription Drug Initiative is a joint effort led by the United States Attorney’s Office for the Eastern District of New York, the DEA, and the five District Attorneys in Kings, Nassau, Queens, Richmond, and Suffolk Counties, working in conjunction with the New York City Police Department and the Nassau and Suffolk County Police Departments, as well as the Department of Health and Human Services, the Internal Revenue Service, New York/New Jersey HIDTA, the New York State Department of Health, and the New York State Medicaid Inspector General. The Prescription Drug Initiative is a broad and comprehensive approach to the epidemic of prescription drug trafficking and abuse, involving not only criminal investigation and prosecution at the federal, state, and local level, but also the targeted use of civil law enforcement, regulatory action, and community outreach. The Initiative has expanded information-sharing among federal and state enforcement agencies to better identify and target suspected traffickers and ensure greater use of criminal, civil, forfeiture, injunctive, and other tools.
The government’s case is being prosecuted by Assistant United States Attorneys Lara Treinis Gatz, Catherine M. Mirabile, and Kenneth Abell.
The Defendant:
ERIC JACOBSON
Age: 51
Huntington, NY
E.D.N.Y. Docket No. 12-CR-452 (S-2) (JFB)
Las Vegas Man Sentenced for Multi-State Series of ATM TheftsRead the Press Release
Case Resolves Twenty-one ATM Thefts in Six Western States
BOISE — Clarence Edward Lancaster, 57, of Las Vegas, Nevada, was sentenced today in United States District Court for twenty-one ATM thefts, resulting in over $200,000 of loss and damage, U.S. Attorney Wendy J. Olson announced. District Judge Edward J. Lodge imposed a sentence of 63 months of prison, $222,305.77 of restitution, and 3 years of post-sentence supervised release.
In November, Lancaster pled guilty to one count of bank larceny for stealing an ATM from the College of Southern Idaho in Twin Falls, Idaho, on July 22, 2012. In that instance, Lancaster used several tools to force open an ATM owned by First Federal Bank, to steal the cash inside. Lancaster’s plea agreement resolved not only that crime, but also 21 ATM thefts committed in Idaho, Wyoming, Washington, Utah, Oregon, and Arizona.
Lancaster was apprehended by law enforcement in January 2013 for a burglary on the campus of Eastern Arizona College. In that incident, Lancaster had entered a building in an attempt to steal from an ATM machine, but was observed by a college professor who called campus police. At a subsequent interview conducted by a Boise FBI agent and Eastern Arizona College police officer, Lancaster confessed to a number of similar ATM thefts, including thefts at Idaho State University, in Pocatello, and Boise State University. The FBI identified Lancaster as the perpetrator in other ATM thefts by geographically tracking his banking transactions and matching the dates and locations with ATM theft reports showing similar patterns of conduct. Lancaster also admitted an ATM theft at North Idaho College in Coeur d’Alene.
As part of the plea agreement, Lancaster admitted to 21 separate events of ATM theft from June 2012 through January 2013, in Idaho, Wyoming, Washington, Utah, Oregon and Arizona, for a total loss of $216,178.84 — $124,000 in U.S. currency, $88,366.84 for damages caused to ATM machines, and $3,612 of property damage to the buildings and equipment where the thefts took place. According to the plea agreement, Lancaster admitted to an additional theft of property from the Lied Animal Shelter, in Las Vegas, which he later pawned; unrecovered property loss was $189.
The case was investigated by the Federal Bureau of Investigation, Boise Police Department, Pocatello Police Department, Twin Falls Police Department, Eastern Arizona College Campus Police, and Boise State campus security.
KC Man Sentenced to 15 Years for Illegal FirearmRead the Press Release
Project Ceasefire
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Reginald Cole, 26, of Kansas City, was sentenced by U.S. District Judge Howard F. Sachs to 15 years in federal prison without parole. Cole was sentenced as an armed career criminal due to his prior felony convictions.
On Nov. 14, 2013, Cole pleaded guilty to being a felon in possession of a firearm. Cole admitted that he was in possession of an Auto Ordinance .45-caliber handgun on Oct. 11, 2012. Cole sold the firearm to an undercover law enforcement officer during an undercover operation by the ATF and the Kansas City, Mo., Police Department.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Cole has three prior felony convictions for burglary.
This case was prosecuted by Assistant U.S. Attorney Stefan C. Hughes. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kansas City, Mo., Police Department.
Project Ceasefire
Project Ceasefire, launched in October 1999, is a cooperative initiative by federal and local law enforcement and the Kansas City Crime Commission that targets for federal prosecution persons who unlawfully use or possess firearms.Justice Department Sues to Stop Miami Tax Return PreparersRead the Press Release
The United States has asked the U.S. District Court for the Southern District of Florida in Miami to stop Lazaro Jesus Toyos, Shirley Ester Almazan, Dilma Toyos Garcia and Daniel Almazan, and their companies L. Toyos Tax Service Inc., Toyos Garcia Tax Service Inc., Toyos Tax Service Inc. and Total Income Tax Services from preparing federal income tax returns for others, the Justice Department announced today.
Lazaro Toyos became a paid tax return preparer in 1979 as an adjunct to his insurance business. In the years that followed, he was joined in the business by his daughters, Dilma Garcia and Shirley Almazan, and Almazan’s husband, Daniel Almazan. Since 2008, these defendants have prepared over 17,000 tax returns for customers. The complaint alleges that the defendants prepare returns that unlawfully understate income tax liabilities and overstate refunds by fabricating and/or exaggerating deductions and tax credits that their clients are not eligible to take. These alleged practices include fabricating business losses for non-existent businesses, falsely claiming the First Time Homebuyer Credit for taxpayers who did not actually purchase a home and falsely claiming American Opportunity Credits for taxpayers who did not incur education expenses or go to college. Altogether, the complaint alleges that loss to the U.S. Treasury from the defendants’ activities may be in the millions of dollars.
In the past decade, the Justice Department’s Tax Division has obtained more than 500 injunctions to stop tax fraud promoters and tax return preparers. Information about these cases is available on the Justice Department website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Settles Lawsuit Against Penske Truck Leasing Co. to Enforce Employment Rights of Air Force Reserve MemberRead the Press Release
The U.S. Justice Department’s Civil Rights Division and U.S. Attorney Dana J. Boente for the Eastern District of Virginia announced today that they had reached an agreement with Penske Truck Leasing Co. resolving claims that Penske violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by failing to properly reemploy and then terminating U.S. Air Force Reserve Member William Mann following his return from required military training with his reserve unit.
According to the complaint, filed in the U.S. District Court for the Eastern District of Virginia, Mann was honorably discharged as a Staff Sergeant in 2011 from the U.S. Air Force after serving with the 512 Mortuary Affairs Squadron at Dover Air Force Base. During his service, Mann suffered a service-related injury. Immediately upon his discharge, Mann notified Penske of his ability to return to work with some medical limitations. The complaint alleged that Penske refused to reemploy Mann, instead placing him on short term leave. In October 2011, while Mann was on short-term leave, he informed Penske that he would need more time to fully recover from his injuries. Two months later, Penske terminated Mann’s employment.
USERRA protects the rights of members of the uniformed services to retain their civilian employment following absences due to military service obligations, and expressly requires employers to accommodate injured servicemembers when they return from military service.
“Congress enacted USERRA to protect our men and women in uniform from experiencing the kind of injustice experienced by Mr. Mann,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department is committed to vigorously enforcing federal laws that protect the employment rights of our servicemembers.”
Under the terms of the settlement, which was filed as a consent decree simultaneously with the complaint, Penske has agreed to pay $85,000 in lost wages to Mann.
“Members of the Air Force Reserve sacrifice time away from their jobs to serve their country,” said U.S. Attorney Boente. “When servicemembers are injured in relation to their service, USERRA ensures that they are not discriminated against and that their employment rights are protected.”
This case stems from a referral by the U.S. Department of Labor (DOL) following an investigation by the DOL’s Veterans’ Employment and Training Service. The case is being handled by the Employment Litigation Section of the Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Virginia, who work collaboratively with the DOL to protect the jobs and benefits of National Guard and Reserve servicemembers upon their return to civilian life.
Additional information about USERRA can be found on the Justice Department website and the division website, as well as on the DOL’s website.
Related Materials:
Signed Consent Decree
Justice Department Settles Lawsuit Against Penske Truck Leasing Co. to Enforce Employment Rights of Air Force Reserve MemberRead the Press Release
WASHINGTON – The U.S. Justice Department’s Civil Rights Division and U.S. Attorney Dana J. Boente for the Eastern District of Virginia announced today that they had reached an agreement with Penske Truck Leasing Co. resolving claims that Penske violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by failing to properly reemploy and then terminating U.S. Air Force Reserve Member William Mann following his return from required military training with his reserve unit.
According to the complaint, filed in the U.S. District Court for the Eastern District of Virginia, Mann was honorably discharged as a Staff Sergeant in 2011 from the U.S. Air Force after serving with the 512 Mortuary Affairs Squadron at Dover Air Force Base. During his service, Mann suffered a service-related injury. Immediately upon his discharge, Mann notified Penske of his ability to return to work with some medical limitations. The complaint alleged that Penske refused to reemploy Mann, instead placing him on short term leave. In October 2011, while Mann was on short-term leave, he informed Penske that he would need more time to fully recover from his injuries. Two months later, Penske terminated Mann’s employment.
USERRA protects the rights of members of the uniformed services to retain their civilian employment following absences due to military service obligations, and expressly requires employers to accommodate injured servicemembers when they return from military service.
“Congress enacted USERRA to protect our men and women in uniform from experiencing the kind of injustice experienced by Mr. Mann,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department is committed to vigorously enforcing federal laws that protect the employment rights of our servicemembers.”
Under the terms of the settlement, which was filed as a consent decree simultaneously with the complaint, Penske has agreed to pay $85,000 in lost wages to Mann.
“Members of the Air Force Reserve sacrifice time away from their jobs to serve their country,” said U.S. Attorney Boente. “When servicemembers are injured in relation to their service, USERRA ensures that they are not discriminated against and that their employment rights are protected.”
This case stems from a referral by the U.S. Department of Labor (DOL) following an investigation by the DOL’s Veterans’ Employment and Training Service. The case is being handled by the Employment Litigation Section of the Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Virginia, who work collaboratively with the DOL to protect the jobs and benefits of National Guard and Reserve servicemembers upon their return to civilian life.
Additional information about USERRA can be found on the Justice Department website and the division website, as well as on the DOL’s website.Justice Department Files Lawsuit Against the State of Hawaii and the Hawaii Department of Transportation for Sexual Harassment and RetaliationRead the Press Release
The Justice Department announced today the filing of a lawsuit against the state of Hawaii and the state of Hawaii Department of Transportation Airports Division (HDOT-Airports) alleging that the defendants discriminated against former employee Sherry Valmoja by subjecting her to sexual harassment in violation of Title VII of the Civil Rights Act of 1964. According to the complaint, Valmoja complained to the defendants about the harassment and was then subjected to retaliation, also in violation of Title VII. Title VII is a federal statute that prohibits discrimination on the basis of race, color, national origin, sex and religion, and prohibits retaliation against an employee who opposes an unlawful employment practice or against an employee who has made a charge or participated in an investigation, proceeding or hearing under the act.
The complaint, filed in the U.S. District Court for the District of Hawaii, alleges that during Valmoja’s employment as a law enforcement canine handler, she was subjected to sexual harassment in the form of lewd and unwelcome comments. Valmoja also suffered intimidation by a co-worker. The complaint also alleges that the unwelcome conduct and intimidation began as early as 2009, when both Valmoja and her co-worker were employed by a private company contracted to the defendants; after both Valmoja and the co-worker became employed by the state of Hawaii, the harassment and intimidation continued until Valmoja’s ultimate termination in 2012.
The suit further alleges that the co-worker confronted Valmoja about her prior sexual harassment complaints and intimidated her after canine handler services were transferred to Hawaii. Despite timely complaints by Valmoja about her co-worker’s conduct, the defendants failed to take reasonable steps to remedy the harassment. Instead, the defendants implemented an employment schedule that brought Valmoja and her harasser into close contact. When Valmoja objected to the continued harassment and retaliation by other HDOT-Airports employees, including managers, her employment was terminated.
Through this lawsuit, the United States seeks declaratory and injunctive relief requiring the defendants to develop and implement policies preventing their employees from being subjected to sexual harassment sex and retaliation. In addition, the United States seeks monetary damages for Valmoja as compensation for the employers’ discriminatory actions.
“ The Justice Department is committed to the vigorous enforcement of all federal civil rights laws under its jurisdiction, including Title VII’s prohibition against sexual harassment and retaliation in the workplace ,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “This lawsuit should send a clear message that the department will take necessary action to eliminate and remedy the effects of unlawful sexual harassment in our public sector workplaces .”
Valmoja originally filed her sexual harassment and retaliation charges against HDOT-Airports with the Honolulu Field Office of the Equal Employment Opportunity Commission (EEOC), which investigated the matters, determined that there was reasonable cause to believe that discrimination had occurred based upon sex and retaliation and referred the matters to the Department of Justice. This lawsuit is brought by the department as a result of a project designed to ensure vigorous enforcement of Title VII against state and local governmental employers by enhancing cooperation between the EEOC and the Civil Rights Division.
“ Sex discrimination and retaliation in the workplace continue to be problematic -- they're a factor in 32 and 43 percent, respectively, of all EEOC charges filed in Hawaii,” said Director Timothy Riera for the EEOC’s Honolulu Local Office. “The EEOC is pleased to partner with the Department of Justice to ensure that employers appropriately address sex discrimination and promote work environments where employees are free to complain without fear of retribution.”
More information about Title VII and other federal employment laws is available at the division’s Employment Litigation Section website . The continued enforcement of Title VII is a priority of the Civil Rights Division. Additional information about the Civil Rights Division of the Department of Justice is available on the division website
The EEOC enforces federal laws prohibiting employment discrimination. Further information about the EEOC is available on its website
Johnstown Heroin Dealer Pleads GuiltyRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of distributing heroin, United States Attorney David J. Hickton announced today.
Damian C. Jeffers, Sr., 44, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Jan. 7, 2013, Jeffers distributed less than 100 grams of heroin.
Judge Gibson scheduled sentencing for Aug. 28, 2014, at 10 a.m. The law provides for a maximum total sentence of 20 years in prison, 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 offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Jeffers.
John Quinn Imprisoned for Internet Sales of Tools Stolen from Ge AviationRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that John Quinn, 55, of Rutland, was sentenced today in United States District Court in Burlington to five months of imprisonment following his guilty plea to a charge of mail fraud. U.S. District Judge William K. Sessions III also ordered Quinn to serve two years of supervised release. As a condition of supervised release, the court directed that Quinn serve an additional 5-month period of home confinement upon his release from prison. The court ordered Quinn to pay $200,000 in restitution and perform 100 hours of community service. The court permitted Quinn to report to the Bureau of Prisons on June 10 to begin serving his sentence. Immediately after sentencing, Quinn paid $108,000 into the court registry toward his restitution obligation.
According to the information to which he pled guilty, Quinn had been employed for a number of years as a subcontractor for GE Aviation in Rutland. The GE facility manufactures components for jet engines on military and commercial aircraft. Quinn served as an account manager and was involved in the ordering, stocking and delivering of tools and other materials. According to the information, Quinn began stealing tools from GE Aviation's inventory no later than 2009 and resold the stolen tools over the Internet. Most of the stolen hardware consisted of high-speed carbide drill bits. Purchasers paid for the stolen tools by depositing funds into Quinn's personal PayPal account. According to PayPal records, between 2009 and July 2013, Quinn realized more than $108,000 from sales of carbide drill bits. The cost to GE of the stolen tools was at least $200,000.
GE Aviation came to suspect that Quinn might be stealing company property last spring and conducted a sting operation where security personnel made three undercover purchases from Quinn. Quinn typically used the U.S. mails to send the stolen tools to the purchasers.
This case was investigated by the Rutland office of the Federal Bureau of Investigation.
Quinn is represented by Barry Griffith. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Iowa's Senators Welcome New U.S. Attorney Kevin E. Techau at Ceremony in Cedar RapidsRead the Press Release
United States Senators Tom Harkin and Chuck Grassley were on hand today at an investiture ceremony honoring Kevin W. Techau as the new U.S. Attorney for the Northern District of Iowa. The ceremony took place shortly after noon at the federal courthouse in Cedar Rapids.
Senator Harkin recommended Techau for the position to President Barack Obama on March 25, 2013. Techau was nominated by President Obama on November 7, 2013, and was confirmed by the full Senate on February 12, 2014. Techau succeeds Stephanie M. Rose as the District’s presidentially appointed United States Attorney and Sean R. Berry as the District’s court appointed United States Attorney. As U.S. Attorney, Techau serves as the nation’s top lawyer for matters arising in Northern Iowa. Techau is the forty-fourth person to hold the position.
“I am honored and grateful for the opportunity to serve as the United States Attorney for the Northern District of Iowa. I am committed to vigorous enforcement of our laws and maintaining the safety of the citizens of our District. Our goal every day is to do justice in each and every case we handle,” Techau said.
“Throughout his career, Kevin Techau has proven to be a principled and dedicated public servant. It is for that reason that I have supported him at every step of the way -- from recommending him to the White House, to supporting his confirmation in the U.S. Senate,” said Harkin. “I know that as the U.S. Attorney for Iowa’s Northern District, he will continue to be committed to upholding the law and serving our state and country.”
Senator Grassley added, “Kevin’s reputation as a dedicated public servant is well-deserved. I have every confidence that he will continue to serve Iowans faithfully and diligently.”
Techau most recently served as Associate General Counsel at American Equity Investment Life Insurance Company, where he worked since 2007. Prior to that, Techau served as a Commissioner of the Iowa Department of Public Safety from 2002 to 2007 and as Director of the Iowa Department of Inspections and Appeals from 1999 to 2002. He was an Assistant Federal Public Defender with the Iowa Federal Defender’s Office from 1996 to 1999 and worked in private practice at the law firm of Grefe & Sidney from 1992 to 1996.From 1985 to 1992, Techau served as a Judge Advocate with the United States Air Force. After leaving active duty, he served with the Iowa Air National Guard from 1993 to 2011. In 2011, he retired from the Iowa Air National Guard as a Colonel with 27 years of military service. He was awarded the Legion of Merit Medal.
Mr. Techau was born in Iowa City and graduated from Marion High School. He received his law degree in 1984 from the University of Iowa College of Law and his undergraduate degree in 1981 from the University of Iowa.
For a photograph, go to http://www.justice.gov/usao/ian/meetattorney.html.
Huntington Woman Sentenced to 5 Years for Aiding Pill DealerRead the Press Release
Pills, heroin, marijuana, cash, and firearm seized from defendant’s home
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Kristin Michelle Graley was sentenced to five years in federal prison for aiding and abetting the possession with intent to distribute prescription pills and marijuana. Chief United States District Judge Robert C. Chambers handed down the sentence. Graley, 31, of Huntington, allowed her co-defendant, Alvester Thomas, 34, of Detroit, Michigan to store drugs at her home located at 3008 Rear 3rd Avenue in Huntington. During a search of Graley’s home in July of last year, agents with the Huntington Violent Crime and Drug Task Force located a kilogram of heroin inside a safe in a bedroom. Agents also seized 545 oxycodone pills, 73 oxymorphone pills, additional amounts of heroin in the living room, and approximately three pounds of marijuana. Agents also recovered a gun from the kitchen of the home and approximately $17,230 in United States currency. Thomas admitted that the drugs belonged to him and that he intended to sell them.
Thomas faces 10 years to life imprisonment and a $10,000,000 fine. He is scheduled to be sentenced on May 27, 2014.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Homeless Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
Follow @SDILNewsMark R. Kelley, a 51-year old, homeless man was sentenced on May 2, 2014, in federal district court in East St. Louis, Illinois, on one count of failure to register as a sex offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Kelley was sentenced to 18 months’ in prison, five years of supervised release, and ordered to pay a $100 special assessment.
Kelley moved from Illinois to Missouri, without updating his registration in either state. Kelley was aware that he was required to either update his sex offender registration in Illinois to reflect this change of address, or register as a sex offender in Missouri. Kelley was convicted on August 15, 2011, in the Twentieth Judicial Circuit Court in St. Clair County, Illinois, of Indecent Solicitation of a Child.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the United States Marshals Service and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Gulfport Man Pleads Guilty to Aggravated Identity TheftRead the Press Release
Gulfport, Miss. – Richard Terrell Jasper, 39, of Gulfport, Mississippi, pled guilty in U.S. District Court today to aggravated identity theft, announced U.S. Attorney Gregory K. Davis and Special Agent in Charge Gabriel L. Grchan of IRS Criminal Investigation.
Jasper pled guilty to one count of the indictment in which he was charged with knowingly using, without lawful authority, the means of identification of another person, that is, the name and social security number of another person, during and in relation to the felony of theft of government funds. The theft of government funds involved numerous income tax refund checks that the defendant obtained and deposited into his bank accounts. The refunds were issued based on fraudulent income tax returns filed using unknowing victims’ names and social security numbers.
Jasper is scheduled to be sentenced on July 29, 2014, before United States District Judge Sul Ozerden. He faces a minimum mandatory term of imprisonment of two years, and a $250,000 fine.
This case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Ruth Morgan.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Fresno Man Sentenced to More Than 12 Years in Prison for Distribution of Child PornographyRead the Press Release
FRESNO, Calif. — David Thomas Hume, 37, of Fresno, was sentenced today by Senior United States District Judge Anthony W. Ishii to 12 years and seven months in prison for distribution of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, between November 28, 2012, and January 24, 2013, Hume distributed more than 600 images depicting minors engaged in sexually explicit conduct. The images also depicted prepubescent minors involved in the portrayal of sadistic, masochistic, and other depictions of violence. Hume was taken into custody on February 14, 2013, was indicted two weeks later for distribution of child pornography, and pleaded guilty to this charge on February 24, 2014.
This case was the product of an extensive investigation by the Central California Internet Crimes Against Children Task force, specifically the Fresno U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Fresno County Sheriff’s Office. Assistant United States Attorney Brian W. Enos is prosecuting the case.
“Each time an image of child pornography is viewed, that child is victimized again,” said Mike Prado, resident agent in charge of HSI Fresno. “As a result of HSI’s close collaboration with our law enforcement partners here in the Central Valley, this individual will be held accountable for his actions and spend many years behind bars, where he can no longer victimize innocent children.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety.
Fort Myers Couple Sentenced Today for Producing Child PornographyRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele today sentenced Alan Robert Johnson (35) to 50 years in federal prison and Jennifer A. Sparks (39) to 30 years in federal prison for production of child pornography. They were both ordered to serve a lifetime of supervision, after their release from prison. The court ordered the couple to forfeit numerous cellular phones, several thumb drives, a Micro SD card, a laptop computer, and a Fuji FinePix camera, which were found to contain child pornography.
Sparks pleaded guilty on January 27, 2014, and Johnson pleaded guilty on January 28, 2014.
According to court documents, on or about May 12, 2012, in Lee County, Florida, Johnson and his girlfriend Sparks knowingly used a 4-year-old girl to engage in sexually explicit conduct for the purpose of producing child pornography. On June 4, 2012, a private citizen turned the cellular telephone that Johnson and Sparks had used to produce the child pornography over to law enforcement. The cellular telephone had been found in a shopping cart at a Walmart in Lee County. Further investigation revealed that Johnson was a registered sex offender. A subsequent search warrant was obtained for his residence, and another cellular phone was located in the couple’s bedroom, containing sexually explicit images of the minor.
This case was investigated by the Federal Bureau of Investigation, FBI Child Exploitation Task Force, which includes the Cape Coral Police Department, and with assistance from the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
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 (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Vice President of Masonry Business Pleads Guilty to Embezzling from Employee Benefit PlanRead the Press Release
A man, formerly the Vice President of Bartleson Masonry, Inc. in Forest City, Iowa, who embezzled more than $40,000 from an employee retirement plan, pled guilty today in federal court in Cedar Rapids.
Anthony Bartleson, 42, from Forest City, Iowa, was convicted of one count of embezzlement from an employee benefit plan.
In a plea agreement, Bartleson admitted that, while serving as the Vice President and Treasurer of Bartleson Masonry, Inc., he was responsible for withholding money from employees’ paychecks, which he was then supposed to forward to an investment company for deposit into each employee’s Individual Retirement Account. Bartleson further admitted that in 2006, 2007, and 2008, while he withheld money from employees’ paychecks, he did not forward that money to the investment company, but, instead, he used the money for his own benefit, the benefit of others, and to pay business expenses for Bartleson Masonry, Inc. Bartleson admitted he embezzled over $25,000 from the employee benefit plan by withholding money from paychecks and also admitted he embezzled more than $15,000 from the plan by failing to pay employer matching contributions to the benefit plan over the same time period.
Sentencing before United States District Court Mark Bennett will be set after a presentence report is prepared. Bartleson remains free on conditions of release set by the District Court. Bartleson faces a possible maximum sentence of five years’ imprisonment, a $250,000 fine, $100 in special assessments, 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 Employee Benefits Security Administration of the U.S. Department of Labor.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 14-CR-3022.
Former Navy Nuclear System Administrator Charged with Hacking the United States Navy and National Geospatial-Ingelligence Agency's Computer SystemsRead the Press Release
TULSA, Okla. — Today, the United States charged two men for their participation in a conspiracy to hack into the computer systems of over 30 public and private organizations, including the United States Navy and National Geospatial-Intelligence Agency, announced Northern District of Oklahoma United States Attorney Danny C. Williams Sr.
The single-count Information alleges that Nicholas Paul Knight, 27, of Chantilly, Virginia, and Daniel Trenton Krueger, 20, of Salem, Illinois, conspired to hack computers and computer systems as part of a plan to steal identities, obstruct justice, and damage a protected computer.
“The Navy quickly identified the breach and tracked down the alleged culprits through their online activity, revealing an extensive computer hacking scheme committed across the country and even abroad,” said U.S. Attorney Danny C. Williams. “We aggressively pursue individuals who steal personal information, especially when they victimize the men and women who bravely defend our country and our Constitution.”
According to the Information, in June 2012, the Naval Criminal Investigative Service (“NCIS”) detected a breach of the U.S. Navy’s Smart Web Move (“SWM”) database. Prior to this breach, the Navy used SWM to manage transfers for service members of all branches of the military. The SWM database stored sensitive personal records, including Social Security numbers, names, and dates of birth, for approximately 220,000 service members. The servers that stored these records were located in Tulsa, giving rise to the venue in the Northern District of Oklahoma.
The SWM hackers were initially known only by their online aliases as members of a hacking group called Team Digi7al (pronounced “Digital”). However, the NCIS investigation, later assisted by investigators of the Defense Criminal Investigative Service (“DCIS”), identified Knight and Krueger as the alleged hackers.
The Information alleges that Knight, Krueger, and other Team Digi7al co-conspirators hacked the computer systems of over thirty public and private organizations to steal sensitive information. The victims included the following organizations:
- U.S. Navy
- U.S. National Geospatial-Intelligence Agency
- U.S. Department of Homeland Security
- AT&T U-verse
- Autotrader.com
- Harvard University
- Johns Hopkins University
- Kawasaki
- Library of Congress
- Los Alamos National Laboratory
- Louisville University
- MeTV Network
- Montgomery Police Department (Alabama)
- Peruvian Ambassador’s email (in Bolivia)
- San Jose State University
- Stanford University
- Toronto Police Service (Canada)
- Ultimate Car Page
- University of Alabama
- University of British Columbia (Canada)
- University of Nebraska-Lincoln
- World Health Organization
The Information also charges that Knight served as the criminal organization’s self-proclaimed leader and publicist, while Krueger completed the technical hacking work of the SWM database and claimed to do so “out of boredom.” One conspirator stated online that the group was “somewhat politically inclined to release the things [they had],” but also because it was “fun, and we can.” After hacking these organizations, the defendants and other conspirators posted links to the stolen information on Team Digi7al’s Twitter account to make the private information available to the public.At the time of the hacking attacks, Knight was an active duty enlisted Navy member assigned to the nuclear aircraft carrier USS Harry S. Truman as a systems administrator in the nuclear reactor department. Krueger was a student at an Illinois community college where he studied network administration.
The charges contained in the Information 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.
If convicted, Knight and Krueger face a maximum penalty of five years of imprisonment and a $250,000 fine, in addition to paying restitution to the victims of the crime. A trial date has not been set.
The case was investigated by the NCIS Atlantic Cyber Operations office in Norfolk, Virginia with the cooperation and assistance of the DCIS Cyber Field Office and other federal, state, and local agencies. The case is being prosecuted by Assistant United States Attorney Ryan Souders, the Computer Hacking and Intellectual Property crimes prosecutor for the United States Attorney’s Office.
U.S. v. Nicholas Paul Knight and Daniel Trenton Krueger
Former Miami-Dade Department of Public Works Employee Charged with Accepting $150,000 in Bribes from ContractorRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce the filing of a one-count information charging Garfield Perry, 66, of North Miami Beach, with conspiring to accept bribes in connection with programs receiving federal funds and to commit extortion, all in violation of Title 18, United States Code, Section 371. Perry is scheduled to appear in federal court on Friday, May 9, 2014, at 2:00 p.m. before U.S. Magistrate Judge Alicia Otazo-Reyes.
According to the information, from at least 2002 through 2009, Perry was the Roadway Lighting Coordinator for the Department of Public Works in Miami-Dade County. In this capacity, Perry was responsible for, among other things, overseeing the maintenance of more than 22,000 street lights in the county’s roadway system. The information charges that from 2006 through October 2009, Perry accepted bribe payments from a Manufacturer’s Representative totaling approximately $150,000. Perry regularly directed the Manufacturer’s Representative to make the bribe payments by paying down debts owed by Perry, including payments on two home mortgages, one car loan, two home insurance policies, two car insurance policies, and eight credit cards. Perry accepted as bribe payments from the Manufacturer’s Representative, cruise vacations, domestic and international airline tickets, payments for hotels and theatre tickets. Perry regularly directed the Manufacturer’s Representative to make bribe payments by issuing checks payable to third parties, and, after the checks were cashed, determined the manner in which the proceeds were to be split. Perry falsely certified to Miami-Dade County that he was not engaged in any outside employment and did not receive any gratuities. In return for the bribe payments, Perry helped to ensure that lighting products used in Public Works’ projects were represented by the Manufacturer’s Representative.
If convicted, Perry faces a possible maximum statutory sentence of up to five years in prison.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
An information is only an accusation and a defendant is presumed innocent until proven guilty.
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.
Former Hartford Police Detective Admits Stealing Nearly $30k in Gun Permit FeesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that former Hartford police detective TISHAY JOHNSON, 40, of Windsor, waived his right to indictment and pleaded guilty today before U.S. Magistrate Judge Donna F. Martinez in Hartford to one count of theft from a local government receiving federal funds.
According to court documents and statements made in court, Hartford residents seeking a permit to carry a concealed weapon are required to submit an application to the City of Hartford through the Hartford Police Department. The application includes a municipal application processing fee of $70 to Hartford and a background check fee of $66.50 to the State of Connecticut. JOHNSON administered the Hartford Police Department’s concealed weapons permit program and was responsible for processing citizens’ applications, collecting the application fees and depositing the fees into the appropriate city or state accounts. Between October 2009 and January 2014, JOHNSON embezzled $29,426.75 that had been paid in connection with permit applications by altering checks and money orders to make it appear that the checks and money orders were payable to him. He also forged signatures on checks to make it appear that the intended payee had endorsed the check over to him. JOHNSON then deposited the funds into a personal checking account.
JOHNSON is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on August 4, 2014, at which time he faces a maximum term of a maximum term of imprisonment of 10 years and a fine of up to $250,000. JOHNSON also has agreed to make restitution of $17,442.50 to the City of Hartford and $11,984.25 to the State of Connecticut. He is released on a $150,000 bond pending sentencing.
JOHNSON resigned from the Hartford Police Department in January 2014.
This matter is being investigated by the Federal Bureau of Investigation and the Hartford Police Department, and is being prosecuted by Assistant U.S. Attorney Christopher M. Mattei.
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Tom Carson
(203) 821-3722 [email protected]Former City Clerk Pleads Guilty to Defrauding the City of MasonvilleRead the Press Release
A woman, formerly the city clerk for Masonville, Iowa, who defrauded the city of more than $30,000, pled guilty today in federal court in Cedar Rapids.
Christine Anne King, 42, from Strawberry Point, Iowa, was convicted of one count of mail fraud.
In a plea agreement, King admitted that, from July 2002 through October 2011, while working as the city clerk for the city of Masonville, she routinely issued herself fraudulent payroll and expense reimbursement checks. King further admitted she included fraudulently inflated bank account balances for the city’s bank accounts on reports King provided to the city council and to the Auditor for the State of Iowa in order to prevent anyone from discovering her fraud.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. King remains free on conditions of release previously set pending sentencing. King faces a possible maximum sentence of twenty years’ imprisonment, a $250,000 fine, $100 in special assessments, 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 Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 14-CR-2009.
Five Monroe County Residents and Two California Men Indicted for Methamphetamine TraffickingRead the Press Release
The United States Attorneys Office for the Middle District of Pennsylvania announced that five Monroe County residents and two California men have been indicted by a federal grand jury in Scranton for conspiring to distribute methamphetamine in the Monroe County area in 2013 and 2014.
According to United States Attorney Peter Smith, the indictment, returned by the grand jury in April of this year and made public today, charges a methamphetamine trafficking conspiracy whereby the defendants obtained high-quality methamphetamine from sources in California which they then distributed for profit in the Monroe County area over a two year period. Charged with conspiracy to distribute methamphetamine are the following individuals:
Reginald Braddy, age 31, San Bernardino, California; Fontaine Horton, age 35, San Bernardino, California; Scott Borushak, age 51, Sciota, Pennsylvania; Emmanuel Tucker, age 38, Stroudsburg, Pennsylvania; Fred Baumgartner, age 33, Kresgeville, Pennsylvania; Anthony Ianuale, age 42, Effort, Pennsylvania; and
Jeanine Altemose, age 53, Stroudsburg, Pennsylvania.In addition to the conspiracy charge the indictment also charges Horton, Borushak, Tucker and Ianuale with distributing methamphetamine. Altemose is also charged with the offense of maintaining drug-involved premises, for allowing methamphetamine to be stored and distributed from her residence. Six of the defendants are now in custody. One of them, Altemose, is out on bail.
The investigation was conducted jointly by the Drug Enforcement Administration, the Pennsylvania State Police, the Pocono Mountain Regional Police Department and the Stroud Regional Police Department.
Prosecution is assigned to Assistant United States Attorney Robert J. O'Hara.
Indictments and Criminal Informations are only allegations. All person charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is imprisonment for twenty years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public, and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Final Member “Felony Lane Gang” Sentenced to over Five Years in PrisonRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that the final member of the “Felony Lane Gang” conspiracy was sentenced to 63 months in prison.
According to the United States Attorney, on Monday, May 5, 2014, Judge William Caldwell sentenced Sylvester Joseph for his role in a car break-in and bank fraud crew that stole over a million dollars in the five years it was in operation. Testimony presented at previous sentencing proceedings showed that the crew stole millions of dollars from banks using stolen checks and identification. Although they were only caught in the fall of 2012, the crew was implicated in committing this scheme over five years and victimizing over 250 people in the course of his fraud scheme, dubbed the “Felony Lane Gang”.
The “Felony Lane Gang” is a group of thieves based in Fort Lauderdale, Florida that travels across the United States stealing identities and checkbooks from unattended cars (“smash and grabs”). With the stolen checkbooks and driver’s licenses, the gang cashes checks using the drive through lane of banks. The farthest lane from video cameras and tellers have been dubbed the “felony lane” because of the ease with which false identities can be used to cash checks.
In December 2012, a grand jury returned a four count indictment charging 10 people with conspiracy to commit fraud, bank fraud, wire fraud, and aggravated identity theft. All of those who were charged entered guilty pleas and the majority of them have been sentenced. The following is a summary:
- Travis J. Russ, age 32, of Fort Lauderdale, Florida – identified as the leader and sentenced to 188 months in prison;
- Jarrett Hobbs, age 31, of Fort Lauderdale, Florida – identified as a leader and sentenced to 132 momths in prison;
- Sylvester Joseph, age 26, of Derrfield, Florida – identified as a leader and sentenced to 63 months in prison;
- Khiante Thompson, age 20, Florida – sentenced to 15 months;
- Phillip Etienne, age 31, of Margate, Florida – 46 months in prison;
- Willie L. Ogiste, age 35, of Fort Lauderdale, Florida –sentenced to 41 months;
- Teresa L. Brimhall, age 45, of Oakland Park, Florida – 18 months in prison;
- April Ainsworth, age 26, of Richmond, Texas – 36 months in prison;
- Colleen Shelly, age 49, of Lauderdale Lakes, Florida – 11 months in prison; and
- Wendy Snyder-Lucas, age 31, of Fort Lauderdale, Florida – 11 months in prison.
The 10 persons charged in this indictment struck Pennsylvania from August to October 2012. During that time, they broke into and/or stole the identities of over 100 people. In addition, the group targeted state parks where victims left purses, wallets, and checkbooks in their cars while using the recreation facilities. The “smash and grabs” occurred at approximately 25 different state parks and recreation centers in and around Central Pennsylvania.
This group used stolen checks and identification to obtain funds from banks and credit unions. According to the indictment, a conspirator, disguised as the account holder, used the drive-through lane at the account holder’s bank, submitted to the teller a forged check with the stolen identification of the victim, on numerous occasions, and received the funds. Through this process, these conspirators successfully compromised numerous accounts and stole tens of thousands of dollars in funds from the victims.
This investigation was conducted by the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the United States Secret Service, the Pennsylvania State Police, the Federal Bureau of Investigation, the Pennsylvania Department of Conservation and Natural Resources and other state and local investigative agencies. The prosecutor assigned to the case is Assistant United States Attorney Michael A. Consiglio.
Federal Racketeering and Attempted Murder Charges Brought Against Leaders and Associates of the Nuestra Familia GangRead the Press Release
A second superseding indictment was unsealed today adding 19 counts including racketeering conspiracy and attempted murder against three defendants for their alleged participation in the violent Nuestra Familia gang, Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division and U.S. Attorney Benjamin B. Wagner announced.
Gary Anthony Romero, 48, of Stockton, Calif., and Joe Anthony Felix, 34, of Modesto, Calif., were first charged with conspiracy to distribute and possess with intent to distribute methamphetamine by a federal grand jury in Fresno, Calif. The superseding indictment, returned under seal on April 30, 2014, includes all of the charges alleged in the original indictment, as well as new charges against them. A new defendant, Jesus Gomez Felix, 30, of Modesto, was also charged.
Jesus Felix was arrested today. Romero and Joe Felix have been in federal custody since March 2013. Jesus Felix will make his initial appearance in federal court in Fresno today, and Romero and Joe Felix were arraigned on the charges today in Fresno.
According to the superseding indictment, Nuestra Familia is a prison gang that originally formed in the California state prison system in the 1960s. Nuestra Familia leaders control and direct the gang’s criminal activities both inside and outside of the prison system.
According to the superseding indictment, Romero has been a member of Nuestra Familia for about 20 years and has reached one of the highest levels of authority in Nuestra Familia. He allegedly ordered various crimes to be committed for the benefit of the gang in Stanislaus County, including attempted murders, assaults, robberies and drug dealing. Romero is charged with racketeering conspiracy; six counts of attempted murder and six counts of assault with a dangerous weapon, all in aid of racketeering; one count of using and brandishing a firearm during a crime of violence; one count of conspiracy to commit robbery; and one count of conspiracy to distribute methamphetamine.
Joe Felix became a Nuestra Familia leader in Stanislaus County in 2012 and allegedly ordered members of the gang to commit murder and deal drugs in Modesto. Joe Felix is charged with racketeering conspiracy; one count of attempted murder, one count of conspiracy to commit murder, and one count of assault with a dangerous weapon, all in aid of racketeering; one count of using and discharging a firearm during a crime of violence; and one count of conspiracy to distribute methamphetamine.
Jesus Felix is charged with one count of assault with a dangerous weapon resulting in serious bodily injury in aid of racketeering and one count of using and discharging a firearm during a crime of violence.
This case was investigated by the Central Valley Gang Impact Task Force under the FBI’s Safe Streets Initiative, with the assistance of the Stanislaus County District Attorney’s Office, Stanislaus County Sheriff’s Office, Modesto Police Department, Ceres Police Department, the California Highway Patrol, the California Department of Corrections and Rehabilitation, the Bureau of Prisons and the Stanislaus County Probation Department.
The case is being prosecuted by Trial Attorney Louis A. Crisostomo of the Criminal Division’s Organized Crime and Gang Section and Assistant United States Attorneys Kimberly A. Sanchez and Laurel J. Montoya of the Eastern District of California.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.Federal Racketeering and Attempted Murder Charges Brought Against Leaders and Associates of the Nuestra Familia GangRead the Press Release
FRESNO, Calif. — A second superseding indictment was unsealed today adding 19 counts including racketeering conspiracy and attempted murder against three defendants for their alleged participation in the violent Nuestra Familia gang, Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division and U.S. Attorney Benjamin B. Wagner announced.
“This complex case identified the network beyond the gang’s drug distribution channels and revealed a command structure that directs violent acts to gain and maintain control of its members, regardless of whether the members are walking the streets of Modesto or incarcerated,” said Supervisory Special Agent Todd Irinaga of the Modesto FBI office. “Today’s indictments demonstrate the effectiveness of a multi-agency, multi-jurisdictional Organized Crime Drug Enforcement Task Force (OCDETF) approach to dismantling drug trafficking organizations who threaten the safety and quality of life in our communities.”
Gary Anthony Romero, 48, of Stockton, and Joe Anthony Felix, 34, of Modesto, were first charged with conspiracy to distribute and possess with intent to distribute methamphetamine by a federal grand jury in Fresno. The superseding indictment, returned under seal on April 30, 2014, includes all of the charges alleged in the original indictment, as well as new charges against them. A new defendant, Jesus Gomez Felix, 30, of Modesto, was also charged.
Jesus Felix was arrested today and made his initial appearance in federal court in Fresno today. Romero and Joe Felix were arraigned on the charges today in Fresno. They have been in federal custody since March 2013.
According to the superseding indictment, Nuestra Familia is a prison gang that originally formed in the California state prison system in the 1960s. Nuestra Familia leaders control and direct the gang’s criminal activities both inside and outside of the prison system.
According to the superseding indictment, Romero has been a member of Nuestra Familia for about 20 years and has reached one of the highest levels of authority in Nuestra Familia. He allegedly ordered various crimes to be committed for the benefit of the gang in Stanislaus County, including attempted murders, assaults, robberies and drug dealing. Romero is charged with racketeering conspiracy; six counts of attempted murder and six counts of assault with a dangerous weapon, all in aid of racketeering; one count of using and brandishing a firearm during a crime of violence; one count of conspiracy to commit robbery; and one count of conspiracy to distribute methamphetamine.
Joe Felix became a Nuestra Familia leader in Stanislaus County in 2012 and allegedly ordered members of the gang to commit murder and deal drugs in Modesto. Joe Felix is charged with racketeering conspiracy; one count of attempted murder, one count of conspiracy to commit murder, and one count of assault with a dangerous weapon, all in aid of racketeering; one count of using and discharging a firearm during a crime of violence; and one count of conspiracy to distribute methamphetamine.
Jesus Felix is charged with one count of assault with a dangerous weapon resulting in serious bodily injury in aid of racketeering and one count of using and discharging a firearm during a crime of violence.
This case was investigated by the Central Valley Gang Impact Task Force under the FBI’s Safe Streets Initiative, with the assistance of the Stanislaus County District Attorney’s Office, Stanislaus County Sheriff’s Office, Modesto Police Department, Ceres Police Department, the California Highway Patrol, the California Department of Corrections and Rehabilitation, the Bureau of Prisons and the Stanislaus County Probation Department.
The case is being prosecuted by Trial Attorney Louis A. Crisostomo of the Criminal Division’s Organized Crime and Gang Section and Assistant United States Attorneys Kimberly A. Sanchez and Laurel J. Montoya of the Eastern District of California.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty. If convicted, each defendant faces a maximum statutory penalty of life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Fairbanks Man Convicted of Possession of Cocaine with Intent to DistributeRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today, that on Thursday, May 1, 2014, after a short trial, and deliberating for under 3 hours, a jury of 10 women and 2 men, found Etienne Devoe, of Fairbanks, Alaska, guilty of possession of cocaine with the intent to distribute.
Devoe, 41, was tried before United States District Court Chief Judge Ralph R. Beistline in Fairbanks.
Devoe was convicted of one count of possession of cocaine with intent to deliver, a violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C). Devoe was charged by indictment in February 2014, regarding an incident that occurred in Fairbanks in February 2012.
Assistant U.S. Attorney Kelly Cavanaugh prosecuted the case.
In Fairbanks, Alaska, on February 1, 2012, at around 6:00 a.m., law enforcement executed a federal search warrant on a residence in connection with a separate federal indictment regarding a Fairbanks drug conspiracy. Though not named as a co-conspirator in that drug conspiracy, Devoe was found in the residence along with two other individuals. Devoe was in possession of six ounces of powder cocaine and a small quantity of crack cocaine that he intended to distribute. The illegal narcotics in Devoe's possession were found inside of a duffle bag in the room where Devoe had been sleeping when law enforcement agents executed the search warrant. Law enforcement also found $2,240 in currency in the pocket of a pair of pants found in the duffle bag, as well as Devoe's wallet and identification. A gym membership form that had been filled out by Devoe was also in the duffle bag. The money was bundled in two $1,000 quantities and one $240 quantity, and wrapped with rubberbands. This is how drug distributors carry their money. In February 2012, six ounces of cocaine had a street value in Fairbanks of roughly $1,700 per ounce or $10,000 total.
Ms. Loeffler commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Alaska State Troopers, the Fairbanks Police, the University of Fairbanks Police, and the U.S. Marshal Service for the investigation leading to the successful prosecution of Mr. Devoe.
Devoe is currently awaiting trial in a separate matter, a federal drug conspiracy scheduled for trial in Anchorage on August 11, 2014.District Man Sentenced to 28-Month Prison Term for Sexually Assaulting Teenage Relative-Defendant Snuck into Child’s Bedroom as She Slept Next to Her Sister-Read the Press Release
WASHINGTON – A Washington, D.C. man, was sentenced today to a 28-month prison term for sexually assaulting a 13-year-old relative last year at the child’s home in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
The defendant, who is not identified here to protect the victim’s identity, pled guilty in February 2014, in the Superior Court of the District of Columbia, to a charge of attempted second-degree child sexual abuse. He was sentenced by the Honorable Rhonda Reid Winston. Upon completion of his prison term, the defendant will be placed on three years of supervised release. He also must register as a sex offender for the rest of his life.
According to the government’s evidence, on March 23, 2013, at about 1 a.m., the 13-year-old victim was asleep in her bedroom next to her sister. The defendant, who was visiting the residence, snuck up the stairs and into the child’s bedroom, where he molested the victim in her bed. After the victim reported the incident to her mother, a Metropolitan Police Department (MPD) investigation began, leading to the defendant’s arrest on Oct. 29, 2013.
In announcing the sentence, U.S. Attorney Machen commended the work performed by those who investigated the case from MPD’s Youth Division. He also praised those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist D’Yvonne Key; Victim/Witness Advocate Veronica Vaughan; and Assistant U.S. Attorneys Danny Nguyen and Mervin A. Bourne, Jr., who investigated and prosecuted the matter.
14-104Detroit Woman Pleads Guilty to AidingIn the Preparation of False ReturnsRead the Press Release
A Detroit woman 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 Carolyn Weber, Internal Revenue Service Criminal Investigation.
Stacey Mendenhall, 39, entered the guilty plea before U.S. District Court Judge Nancy Edmunds.
According to court records, during 2009, Mendenhall assisted Gerald Hawk, Jr., a resident of Detroit, in preparing and filing false income tax returns claiming the 2008 First Time Homebuyer Credit (FTHBC). The FTHBC was a credit for individuals who purchased a home during 2008 to receive up to $8,000 upon filing their income tax returns. Mendenhall provided Hawk with names and social security numbers of individuals in order that Hawk could prepare false income tax returns claiming the 2008 FTHBC. Hawk offered Mendenhall $200 in cash for the names and social security numbers that she provided. Mendenhall and Hawk solicited clients by promising that they could acquire a tax refund of $8,000 to purchase a home by receiving the FTHBC. Mendenhall and Hawk knew the individuals did not purchase a home and had no intention of later purchasing a home after the credit was received. Mendenhall provided Hawk with information to prepare and file a number of tax returns falsely claiming the FTHBC. Mendenhall will be required to pay restitution of $72,673 to the Internal Revenue Service along with Gerald Hawk.
A sentencing hearing was set by Judge Edmunds for August 21at 2 p.m. The maximum penalty for willfully making false claims to the United States government is imprisonment of not more than five years and a $250,000 fine.
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.
Detroit Man Sentenced to 5+ Years in Heroin ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Detroit man involved in a heroin distribution scheme was sentenced today to 63 months in federal prison, announced U.S. Attorney Booth Goodwin. Bobby Nelson Gulley, 38, previously pleaded guilty to conspiracy to distribute heroin. Gulley admitted that he conspired with others, including Helen Louise Adkins and Alanna Lynn Mattison, to distribute heroin in the Huntington area from at least January 2013 to August 15, 2013.
During the conspiracy, Gulley frequently transported heroin and oxycodone from Detroit to Huntington. Gulley recruited Adkins and Mattison to maintain separate apartments at 522 14th Street West in Huntington where heroin and oxycodone were stored. Gulley also used Adkins and Mattison to make distributions of heroin on his behalf. Beginning in January 2013, agents with the Drug Enforcement Administration used a confidential informant to make several controlled purchases of heroin from Gulley, Adkins and Mattison at various locations in West Huntington. On August 15, 2013, agents executed search warrants at the 14th Street West apartments rented by Adkins and Mattison. During the search, agents seized over 140 grams of heroin, 974 oxycodone tablets and $12,000 in United States currency.
Adkins and Mattison previously pleaded guilty in January 2014 and are both set to be sentenced on June 9, 2014, in Huntington.
The investigation was conducted by the Drug Enforcement Administration with assistance from the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Joseph F. Adams handled the prosecution. Today’s sentence was imposed by Chief United States District Judge Robert C. Chambers.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Desert Hot Springs Man Who Planted Pipe Bombs Near Ex-Girlfriend’s Residence in Palm Springs Pleads Guilty to Explosives ChargeRead the Press Release
RIVERSIDE, California – A man who left pipe bombs in a residential neighborhood in Palm Springs near the residence of an ex-girlfriend – and who became a fugitive after escaping from custody in a related case – pleaded guilty today to a federal charge of possession of an unregistered destructive device.
Edward Allen Costa, 49, who resided in Desert Hot Springs but was a fugitive for a time last year, pleaded guilty to the felony charge before United States District Judge Virginia A. Phillips.
Costa pleaded guilty in 2012 to being a felon in possession of a firearm. He was sentenced to a year in prison and was finishing his sentence at a halfway house in Rubidoux when he walked away from the facility in August 2013. The fugitive was taken into custody in November by the Banning Police Department and the FBI.
While a fugitive last year, Costa was indicted for possessing six pipes bombs that were left in a Palm Springs neighborhood from May 8 through May 12 of 2012. Prior to being indicted for the pipe bombs, Costa was charged with being a convicted felon in possession of a .357-magnum revolver, as well as 106 rounds of ammunition.
The Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case involving the pipe bombs. The Palm Springs Police Department and the Riverside County Sheriff’s Department provided substantial assistance.
As a result of today’s guilty plea, Costa faces a statutory maximum penalty of 10 years in federal prison. Judge Phillips is scheduled to sentence Costa on July 14.
Release No. 14-053a