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25 April 2014
Cass County Resident Sentenced to 10 Years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA - On April 25, 2014, Franklin D. Schmidt, Jr, a 49 year-old resident of Atlantic, Iowa, was sentenced by United States Senior District Court Judge Robert Pratt to 120 months in prison for conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine, announced U.S. Attorney Nicholas A. Klinefeldt. Judge Pratt also ordered Schmidt to serve five years of supervised release following the period of imprisonment.
On April 26, 2013, Schmidt obtained methamphetamine from his South Omaha source and was stopped by law enforcement before he could distribute it in and around Cass County, Iowa. The investigation revealed that Schmidt was also responsible for distribution of marijuana along with methamphetamine.
On December 5, 2013, Schmidt pled guilty to the charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine, which resulted from an investigation by law enforcement into the transportation and distribution of methamphetamine from South Omaha, Nebraska to Cass County, Iowa.
The investigation was conducted by the Cass County Sheriff’s Office, the Atlantic, Iowa, Police Department and the Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Cantwell Man Pleads Guilty to Illegal Drug Trafficking ChargesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that a Cantwell man entered pleas of guilty in federal court today in Anchorage, for two counts of trafficking in narcotics.
Randall Dion Frank, 52, of Cantwell, Alaska, pleaded guilty today before Chief United States District Judge Ralph R. Beistline, to charges that he conspired to violate federal drug trafficking laws, and attempted to possess methamphetamine with the intent to distribute it.
According to the facts presented in court by Assistant U. S. Attorney Stephen Cooper to support the guilty pleas, last September Frank and accomplice Russell Miller received a parcel containing about one pound of 99% pure methamphetamine for redistribution to others in Alaska. Drug Enforcement Administration agents had information that the parcel contained illegal drugs. They obtained a search warrant from the court, followed the parcel when it was delivered, and arrested both Frank and Miller at Miller’s residence in Cantwell as they were in the act of opening the parcel. Investigation revealed that the parcel was the latest in a series of shipments of methamphetamine that Miller received from sources in Arizona during several months before their arrest. Miller shared portions of these shipments with Frank. According to law enforcement investigators in the case, the total value of the seized drugs alone exceeds $50,000, or $100,000 if the drugs were diluted before resale. The value of the additional drugs shipped into Alaska before the arrest would be several times this amount.
The judge set sentencing proceedings for July 23, 2014 at 9:00 a.m., in Anchorage. Frank and Miller have been ordered detained in custody pending the sentencing.
Ms. Loeffler commends the agents of the Drug Enforcement Administration the State of Alaska Drug Task Force officers cooperating with DEA, for the investigation of this case.
Cahokia Man Sentenced for Child Pornography OffensesRead the Press Release
Follow @SDILNewsA Cahokia man was sentenced on April 24, 2014, on a three-count superseding indictment charging Production of Child Pornography (Count 1), Receipt of Child Pornography (Count 2), and Possession of Child Pornography (Count 3), the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Charles E. Hicks, 24, was sentenced to a total term of 180 months in federal prison, to be followed by a 10 year term of supervised release. In addition, upon his release from prison, Hicks must register as a sex offender as a condition of his supervised release. Finally, Hicks agreed to pay $500 in restitution to each of the victims in the “Vicky” and “J_Blonde” child pornography series. Hicks has been detained (held without bond) since he was found guilty by a jury on March 14, 2013.
“Anyone who thinks these cases are merely about people looking at dirty pictures should read about how the child victims of this severe physical and psychological abuse suffer each and every day for the rest of their lives. My office will continue to seek appropriate prison sentences for those who would abuse children.” noted United States Attorney Wigginton.
The investigation that led to the offenses for which Hicks was ultimately sentenced began on January 14, 2011, when an undercover operation conducted by a member of the United States Secret Service=s Southern Illinois Cyber Crime Unit identified a computer that was offering to share images and videos of child pornography. The agent downloaded three images of child pornography from this computer, and later obtained a subpoena to identify the subscriber information related to this computer. The subscriber information identified Hicks’ residence as the location of the computer from which the images of child pornography were downloaded. Agents obtained a federal search warrant to search the residence. Hicks was not at home, but the agents were able to make contact with him at his mother’s house in Belleville, Illinois. While speaking with him, agents learned that Hicks had two computers stored at his mother’s residence, one of them a HP Pavilion desktop computer. Hicks gave written consent to search both computers. A forensic preview at the scene revealed images of child pornography on the HP computer.
Hicks eventually admitted that he had been downloading child pornography for about two to three years, but that he only did so in the hope that law enforcement officers would track him down so they could find the person making the images available.
A forensic examination performed on the HP Pavilion desktop computer revealed 159 images and 130 video files of child pornography were present on this computer, and that the forensic evidence was consistent with Hicks as the person who downloaded and possessed the images. It also revealed that on April 3, 2008, Hicks downloaded several image and video files from LimeWire that he knew contained child pornography.
The investigation also revealed that, on August 1, 2008, Hicks took two pornographic photographs of TH knowing that he/she was 16 years old at the time. One of the photographs depicted Hicks engaged in sexual intercourse with the minor. The other photograph was of the lascivious display of the minor=s genitals.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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."
The case was investigated by the Illinois State Police and United States Secret Service=s Southern Illinois Cyber Crime Unit. The case was assigned to Assistant United States Attorney Angela Scott.
Brooklyn Man Charged with Passing Counterfeit BillsRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that a felony information has been filed against Ketsy Devis, age 24, of Brooklyn, New York. The information charges Devis with conspiracy to pass counterfeit federal reserve notes at various locations throughout the Middle District of Pennsylvania and elsewhere.
Devis could be imprisoned for a statutory maximum term of imprisonment of 5 years and fines in the amount of $250,000.
The case was jointly investigated by Special Agent Jason Wolfson of the United States Secret Service and the Dickson City Police Department.Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 5 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Brandon Glover Sentenced to over 6 Years in Prison for Distributing Methamphetamine in HavreRead the Press Release
The United States Attorney's Office announced that on April 24, 2014, in Great Falls, BRANDON WAYNE GLOVER, 31, of Havre, was sentenced to a term of 80 months' imprisonment to be followed by five years of supervised release by U.S. District Judge Brian M. Morris. Glover was sentenced following his January 9, 2014, guilty plea to possession with intent to distribute methamphetamine.
Assistant U.S. Attorney Jessica Betley told the Court that Havre law enforcement began the investigation into Brandon Glover's suspected drug activities in early 2010, when a witness told the officers that she had purchased ten grams of methamphetamine directly from the defendant. In February 2011, agents made undercover drug purchases from Glover. The investigation established that Glover often traveled to Billings to pick up methamphetamine. On one occasion, an informant observed Glover with approximately 100 baggies, each of which contained one gram of methamphetamine, packaged for sale.
Numerous witnesses told law enforcement they regularly purchased a half gram to a gram of methamphetamine from Glover and other witnesses would have testified that Glover recruited them to sell methamphetamine for him. From the year 2010, until at least October 2011, Glover possessed with the intent to distribute, at a minimum, over 50 grams of a substance containing a detectable amount of methamphetamine.
This investigation was conducted by the Havre Police Department and the Tri-Agency Task Force.
Beckley Man Sentenced to Five Years in Federal Prison for ArsonRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced that Antonio LeJune Wade, 30, of Beckley, West Virginia, was sentenced to five years in federal prison for setting fire to the steps from his girlfriend’s apartment. Wade admitted that he intentionally set the fire following an argument with his girlfriend and knowing that the stairs were the only means of exit from the apartment. Wade’s girlfriend and her young son were in the apartment located on Sixth Avenue in Charleston, at the time the fire was set. Wade pleaded guilty in January of 2014 to the charge of malicious destruction by fire. United States District Court Judge John T. Copenhaver, Jr. imposed the sentence.
The Charleston Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation. Assistant United States Attorney Blaire L. Malkin handled the prosecution.
Arizona Systems Administrator Sentenced for Sabotaging Ex-Employer’s Cloud-Computing ServerRead the Press Release
ALEXANDRIA, Va. – Jonathan Hartwell Wolberg, 31, of Tucson, Az., was sentenced today to 33 months in prison, followed by 3 years of supervised release, for intentionally causing damage to a protected computer.
Dana J. Boente, United States Attorney for the Eastern District of Virginia and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by United States District Judge Liam O’Grady.
Wolberg pleaded guilty on January 6, 2014. According to court documents, Wolberg formerly worked as a systems administrator for a company identified as “Company A,” a cloud-computing services provider headquartered in the Eastern District of Virginia. After resigning, Wolberg continued to enter the networks of Company A for the purpose of damaging its servers, its reputation, and its business. From about March 16, 2012 through about August 1, 2012, Wolberg encouraged Company A’s customers to leave and secretly logged into Company A’s server to issue a shutdown command to a key data server. As a result, he shut down Company A’s customer networks, making key information – including that of hospitals responsible for surgery and other urgent patient care – unavailable for at least several hours. Wolberg caused hundreds of thousands of dollars of damage as a result.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Alexander T.H. Nguyen is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Alien Smuggler Gets More Than 16 Years for Deadly CrashRead the Press Release
CORPUS CHRISTI, Texas - Mexican National Manuel Rendon-Lucas, 19, has been ordered to federal prison and must pay nearly $3 million in restitution for his involvement in a deadly single vehicle accident that occurred in Brooks County in Novemeber 2013, announced United States Attorney Kenneth Magidson. Rendon-Lucas pleaded guilty March 21, 2014, to conspiracy to transport illegal aliens causing serious bodily injury.
Today, Senior U.S. District Judge Janis Graham Jack handed the teenager a sentence of 200 months of federal imprisonment to be followed by three years of supervised release. Rendon-Lucas was also ordered to pay more than $2.65 million in restitution. In handing down the sentence, the judge noted she had never seen such an egregious case.
The charges stem from a Nov. 23, 2013, single vehicle accident in Brooks County that killed five and injured 10, including Rendon-Lucas, who was driving. All of the vehicle’s occupants were determined to be undocumented aliens from Mexico, Honduras, El Salvador, Ecuador and Nicaragua.On that date, while attempting to flee from law enforcement officers at a high rate of speed, the vehicle hit a construction barrier and begin to swerve out of control. As the vehicle began to skid, it exited the roadway and struck a curb with its left front tire causing the vehicle to become airborne. The front left portion of the vehicle then struck a tree at a high rate of speed. Five occupants were pronounced dead on the scene, including a brush guide who had assisted in smuggling the undocumented aliens. Several of the survivors sustained spinal fractures during the accident and remain paralyzed.
In federal custody since his arrest, Rendon-Lucas will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charge stems from an investigation by Homeland Security Investigations, Border Patrol, Falfurrias Police Department, Brooks County Sheriff’s Department and Texas Department of Public Safety.
This case was prosecuted by Assistant U.S. Attorney Lance Watt.
Alabama Man Sentenced for Tax Fraud and Identity TheftRead the Press Release
Nakia Jackson, of Montgomery, Alabama, was sentenced to serve 87 months in prison today for conspiring to defraud the United States and one count of aggravated identity theft for his role in a stolen identity refund fraud scheme, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division, U.S. Attorney George L. Beck Jr. for the Middle District of Alabama and the Internal Revenue Service (IRS).
According to court documents, between January 2009 and March 2011, Jackson obtained stolen identities from an Alabama state employee and used those identities to file false tax returns. Jackson recruited a bank employee, LaQuanta Clayton, to assist him in depositing the false income tax refunds into various bank accounts. He obtained permission from several individuals to use their bank accounts to receive false refunds and when a false refund was deposited, Jackson would direct the individuals to withdraw the money and give the money to him. In total, Jackson filed over 100 false tax returns and requested over $400,000 in refunds.
In addition, Jackson was ordered to serve three years of supervised release and pay $212,856 in restitution.
IRS-Criminal Investigation agents investigated this case and Trial Attorneys Charles M. Edgar Jr. and Michael Boteler for the Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.
More information about the Tax Division and its enforcement efforts can be found at the division website.
24 April 2014
“Investment Advisory Firm” Owner Sentenced to Federal PrisonRead the Press Release
GALVESTON – Kimberly Fontenot, a Brazoria County resident, has been ordered to federal prison following her conviction of defrauding clients of her so-called investment advisory firm, Stellar Grants Inc., announced United States Attorney Kenneth Magidson. Fontenot, 53, entered a plea of guilty Thursday, Dec. 5, 2013.
Today, U.S. District Judge Gregg Costa cited the need for the sentence to reflect the seriousness of the offense and to deter criminal conduct and ultimately handed Fontenot a total sentence of 37 months to be immediately followed by three years of supervised release. She was further ordered to pay a $115,115 in restitution. In handing down the sentence, Judge Costa further noted there were more than 20 victims affected by the complex wire fraud and identity fraud scheme.
As outlined in documents filed with the court and admitted by Fontenot at the time of her plea, from at least January through December 2012, Fontenot lured potential clients by falsely claiming to know numerous wealthy investors located throughout the U.S. She offered access to these wealthy investors, whom she called her “angel investors,” to potential Stellar Grants clients in exchange for money. Specifically, Fontenot misrepresented that in exchange for money, she could put Stellar Grants clients in contact with the “angel investors” and would help them seek investments from the angel investors.
In addition to claiming personal and business relationships with them, Fontenot used the web-based email services Yahoo.com and Gmail.com to create fake email accounts in the names of the investors. She used these accounts to send emails to Stellar Grants clients, making it seem as if the emails were coming to and from the “angel investors” when, in reality, they were coming from Fontenot.Fontenot also hired a voice actor to impersonate the “angel investors” or their representatives during telephone calls with Stellar Grants clients. She also instructed the actor how to act and what to say during the calls. Fontenot then held fake conference calls in which she pretended to represent the Stellar Grants client and the voice actor pretended to be the angel investor or a representative of the angel investor, all in an attempt to justify the consulting fees paid by the Stellar Grants clients.
To avoid detection, Fontenot arranged for Stellar Grants clients or their representatives to sign “Master Consulting Agreements.” These agreements included a penalty clause which imposed heavy financial penalties if the clients contacted any of the angel investors.
Fontenotwas permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney John Pearson.
Waterford Man Sentenced to 17 Years in Prison for Possesing Firearms Stolen in Burglary SpreeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARK MISSINO, also known as “Mark Houston” and “Mark Serano,” 46, formerly of Waterford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 204 months of imprisonment, followed by five years of supervised release, for stealing and possessing numerous firearms.
According to court documents and statements made in court, in November 2010, MISSINO and Bernard McAllister possessed 19 firearms that they had stolen during a string of residential burglaries that took place between 2008 and 2010. The firearms were discovered in an East Lyme storage locker with more than 8,000 other items believed to have been taken during the burglaries.
Prior to November 2010, MISSINO had been convicted of multiple felony offenses in Connecticut and Florida, including convictions for larceny, burglary, robbery, grand theft and escape. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
MISSINO and McAllister have been detained since November 18, 2010, when they were arrested in Massachusetts. On January 30, 2014, MISSINO pleaded guilty to one count of possession of firearms by a previously convicted felon. McAllister pleaded guilty to the same charge on June 6, 2013.
MISSINO and McAllister also pleaded guilty in state court to several charges related to the series of residential burglaries.
Judge Underhill recommended that MISSINO’s 204-month federal sentence run concurrently with his state sentence. MISSINO is scheduled to be sentenced in state court on April 30, at which time he is expected to receive a sentence of 40 years, execution suspended after 25 years.
On March 21, 2014, McAllister was sentenced in federal court to 108 months of imprisonment, concurrently with a state sentence of 25 years, execution suspended after 16 years.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Connecticut State Police, the Massachusetts State Police, and the East Lyme, Greenwich, Madison, Guilford, Glastonbury, North Branford and Wallingford Police Departments. The case was prosecuted by Assistant U.S. Attorney Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]U.S. Seeks to Recover over $700,000 in Kleptocracy Proceeds of Former South Korean President Chun Doo-hwanRead the Press Release
The Department of Justice filed a civil forfeiture complaint in the U.S. District Court for the Central District of California seeking to recover more than $700,000 in alleged corruption proceeds of Chun Doo-hwan, the former president of the Republic of Korea.
These monies were seized in February 2014 from the sale of a house located in Newport Beach, Calif., which President Chun’s son, Chun Jae Yong, had purchased in 2005 with proceeds allegedly traceable to his father’s corruption. The United States is working with the Republic of Korea’s Supreme Prosecutor’s Office, the Ministry of Justice and the Seoul Central District Prosecutor’s Office to forfeit these corruption proceeds.
The announcement was made by Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Division and Assistant Director John G. Connolly of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Office of International Affairs.
“While serving as Korea’s president, Chun Doo-hwan betrayed the Korean people by taking over $200 million in bribes, some of which his family members then illegally laundered into the United States,” said Acting Assistant Attorney General O’Neil. “Through the department’s Kleptocracy Initiative, we are making crystal clear that the United States will not tolerate the use of its financial system by corrupt foreign officials – or their relatives – to harbor their ill-gotten gains.”
“The U.S. will not be a safe repository for assets misappropriated by corrupt foreign leaders,” said FBI Assistant Director in Charge Lewis. “The FBI is committed to working with foreign and domestic partners to identify and return those assets to the legitimate owners, in this case the people of the Republic of Korea.”
“This most recent seizure is part of an ongoing effort by HSI to identify and seize illegal assets in the United States obtained by corrupt foreign leaders who use our country as a safe haven to conceal the illicit proceeds of their crimes,” said HSI Assistant Director Connolly. “HSI special agents in our 67 offices in 48 countries will continue to work with our domestic offices as well as international law enforcement partners to hold these individuals accountable by denying them the enjoyment of their ill-gotten gains.”
As alleged in the forfeiture complaint, President Chun was convicted in Korea in 1997 of receiving more than $200 million in bribes from Korean businesses and companies. President Chun and his relatives laundered some of these corruption proceeds through a web of nominees and shell companies in both Korea and the United States.
Through close cooperation between U.S. and Korean law enforcement and prosecution authorities, the $721,951 sought for forfeiture was identified and seized when President Chun’s relatives sold a home in Newport Beach that previously had been purchased with the laundered proceeds of President Chun’s corruption.
This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Asset Forfeiture and Money Laundering Section, working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, return those proceeds to benefit the people harmed by these acts of corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected] .
The investigation was conducted jointly by the FBI’s Kleptocracy Program of the International Corruption Unit within the Criminal Investigation Division and the West Covina Resident Agency of the Los Angeles Division and HSI Attaché Seoul, with assistance from HSI Miami. The case is being prosecuted by Trial Attorney Woo S. Lee of the Criminal Division’s Asset Forfeiture and Money Laundering Section, with substantial support from the Criminal Division’s Office of International Affairs.U.S. Attorney Booth Goodwin, Greenbrier Sheriff Jan Cahill to Host Prescription Drug Take-back Kickoff FridayRead the Press Release
CHARLESTON, W.Va. –U.S. Attorney Booth Goodwin and the Greenbrier County Sheriff’s Department will host a National Prescription Drug Take-Back kickoff event on Friday, April 25, 2014, at 11:00 a.m. at the Greenbrier County Courthouse located at 200 North Court Street in Lewisburg, West Virginia.
Friday’s kickoff event will promote awareness of the eighth National Prescription Drug Take-Back Day, which will be held Saturday, April 26, 2014. As part of West Virginia’s participation in the prescription drug collection effort, the U.S. Drug Enforcement Administration and other partners will collect expired, unused and unwanted prescription drugs at several designated drop-off sites throughout the state on April 26, 2014 from 10 a.m. until 2 p.m. Past take-back events have collected a total of more than 13 tons of unwanted prescription drugs in West Virginia and 1,733 tons nationwide. For a complete list of collection locations, please visit: www.dea.gov.
PRESCRIPTION DRUG TAKE-BACK KICKOFF EVENT – Greenbrier County Courthouse
WHO: United States Attorney Booth Goodwin
Sheriff Jan Cahill, Greenbrier County Sheriff’s Department
WHERE: Greenbrier County Courthouse (Lobby)
200 North Court Street
Lewisburg, WV
WHEN: Friday, April 25, 2014 at 11:00 a.m.Two Savannah Men Charged with Conspiring to Deal in Counterfeit CurrencyRead the Press Release
Savannah, GA – Henry Grady Wall, 35, and James Wesley Kelly, 55, both from Savannah, Georgia, were indicted by a federal grand jury sitting in Savannah earlier this month for allegedly conspiring to deal in counterfeit $50 bills. The indictment alleges that both Wall and Kelly knowingly used counterfeit notes to purchase money orders at a grocery store in Port Wentworth, Georgia.
Both Wall and Kelly were arraigned yesterday in before U. S. Magistrate Judge G.R. Smith on a charge of conspiracy. The conspiracy charge carries a maximum prison sentence of 5 years, and a maximum fine of $250,000. Wall was charged separately with dealing and passing counterfeit currency. Each of those charges carries a 20-year maximum prison sentence. United States Attorney Tarver emphasized that the indictment is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The ongoing investigation of this case is being conducted by Special Agents with the United States Secret Service. Assistant United States Attorney T. Shane Mayes is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Two San Gabriel Valley Men Who Participated in ‘Black Market Peso Exchange’ That Moved Money Out of U.S. Sentenced to Federal PrisonRead the Press Release
LOS ANGELES – Two men and the South El Monte import-export company they used to move millions of dollars linked to illegal activity from the United States to Mexico were sentenced today for operating an unlicensed money transmitting business. The three defendants received large sums of cash – often hidden in duffel bags – and they worked with “peso brokers” in Mexico to illegally convert the dollars to pesos.
The three defendants sentenced today by United States District Judge John A. Kronstadt are:Peace & Rich Import, Inc., a wholesale distributor of silk flowers and other goods, which was sentenced to pay a $75,000 fine and to be on probation for four years with stringent conditions;
Chaur Hwan “Kenny” Lin, 67, of Temple City, the president and co-owner of Peace & Rich, who was sentenced to one year in federal prison and ordered to pay a $6,000 fine; and
Antonio Pareja, 54, of San Gabriel, the manager of Peace & Rich, who was sentenced to one year and one day in prison.
Judge Kronstadt also ordered Peace & Rich and Lin to forfeit more than $2 million of funds related to the crime.
Lin and Pareja ran Peace & Rich as an informal money transfer system that was involved in the transfer of money outside of the conventional financial institutions system. An investigation by the Drug Enforcement Administration in Los Angeles determined that Lin and Pareja used Peace & Rich to receive large amounts of cash derived from illegal activity. The cash – as much as hundreds of thousands of dollars – was typically delivered by couriers working in conjunction with a peso broker in Mexico.
In a Black Market Peso Exchange scheme, a peso broker works with an individual engaged in illegal activity, such as a drug trafficker, who has United States currency in the United States that he needs to bring to Mexico and convert to pesos. The peso broker finds business owners in Mexico who buy goods from vendors in the United States, such as Peace & Rich, and need dollars to pay for those goods. The peso broker arranges for the illegally obtained dollars in the United States to be delivered to the United States-based vendors, such as Peace & Rich, where they are used to pay for the goods purchased by the Mexico based customers. Once the goods are shipped to Mexico and sold by the Mexico based business owner for pesos, the pesos are turned over to the peso broker, who then pays the drug trafficker in Mexico.
Peace & Rich took in large amounts of cash and conducted transactions without being registered as a money transmitting business and without filing Currency Transaction Reports (CTRs), which are required when a business accepts cash payments of more than $10,000. Lin and Pareja disbursed cash as directed by a peso broker in Mexico to couriers for delivery to other United States based businesses on behalf of their Mexico based customers. Additionally, Lin “structured” cash deposits – or, made a series of deposits that were less than $10,000 – to avoid the filing of CTRs by the financial institutions where the deposits were made.
Release No. 14-050
Two Arrested in Richford on Gun and Drug ChargesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that two men were arrested on Tuesday on gun and drug charges. Larry Garrow, 26, of Richford, Vermont, was arrested and charged with stealing firearms from a federally licensed firearms dealer in Hardwick, Vermont. Albert Torres-Morales, 29, of Richford, was arrested and charged with distribution of cocaine on January 2, 2014, and possessing with the intent to distribute heroin on April 22, 2014. Garrow and Morales appeared in federal court on April 23, 2014, for initial appearances. Both men were ordered temporarily detained pending detention hearings on April 25, 2014. If convicted, Garrow faces a maximum possible penalty of ten years in prison. Morales faces a possible penalty of 20 years in prison.
According to court documents, on or about April 19, 2014, the Rite Way Sports Shop in Hardwick, Vermont was burglarized and 32 firearms were stolen. Larry Garrow, assisted by a female, broke into the Rite Way and stole the firearms. Information later revealed that Garrow kept some of those guns and gave the remaining guns to a person known as "Junior" in exchange for money and drugs. Junior has been identified as Albert Torres-Morales. Law enforcement arrested Garrow on April 22, 2014 based on a tip and other information provided to the police. Morales was arrested on that same date for drug charges stemming from an ongoing drug investigation.
On April 23, 2014, one of Garrow's family members turned in eleven of the stolen guns to the police. The remaining guns have not been located and law enforcement is seeking any information relating to the location of these stolen firearms. If you have any information about these crimes, please call your local police department or the Crimestoppers Tip Line at 864-6666 or Toll Free at 1-800-427-8477.
The U.S. Attorney emphasized that the charges against Garrow and Morales are only accusations and that the defendants are presumed innocent until and unless proven guilty.This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Vermont State Police, the Hardwick Police Department, the FBI, and the U.S. Border Patrol.
Assistant U.S. Attorneys Kevin Doyle and Wendy L. Fuller are handling the prosecution of these cases. Garrow is represented by Jordana M. Levine, Esq. Morales is represented by Federal Public Defender Michael Desautels, Esq.Tucson Man Sentenced to 297 Months in Prison for Producing Child PornographyRead the Press Release
TUCSON, Ariz. – On April 23, 2014, Lance Robert Fries, 43, of Tucson, was sentenced by U.S. District Judge Jennifer G. Zipps to 297 months imprisonment as a result of his guilty plea on Oct. 2, 2013, to two counts of production of child pornographyFries’ term of imprisonment will be followed by lifetime supervised release, with stringent sex offender conditions, including the condition that he register as a sex offender.
Fries was indicted on Jan. 30, 2013, by a federal Grand Jury after an investigation revealed that Fries sexually abused a toddler multiple times, and allowed the abuse to be watched by others via webcam over the internet. Videos memorializing the abuse were discovered in two separate child exploitation investigations involving other defendants in Oregon and Florida.
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, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by U.S. Immigration Enforcement (ICE), Homeland Security Investigations, Tucson. The prosecution was handled by Carmen F. Corbin and Carin C. Duryee, District of Arizona, Tucson.
CASE NUMBER: CR-13-0146-TUC-JGZ
RELEASE NUMBER: 2014-024_Fries
# # #For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Tiffany G. Bremner Sentenced for Theft of Government FundsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls on April 24, 2014, before U.S. District Judge Brian M. Morris, TIFFANY G. BREMNER was sentenced to a term of:
Prison: 15 months
Supervised Release: 3 years
Bremner, of Browning, Montana, was sentenced in connection with her guilty plea to Theft of Government Funds. The Court also ordered that she pay restitution in the amount of $58,702.00.
In an Offer of Proof filed by Assistant U.S. Attorney Zeno B. Baucus, the government stated it would have proved at trial the following:
Bremner, age 31, applied for United States Department of Agriculture and Department of Health and Human Services benefits from approximately February 2002 through June 2009.
During that period, Bremner was required to represent the accurate composition of her
Despite not maintaining custody of her son during the majority of this period, Bremner misrepresented that she had physical custody of them. The appropriate agencies relied on these misrepresentations in determining the eligibility and amounts of her benefits. As a result of her misrepresentations, Bremner obtained approximately $58,700.00 in benefits.
Because there is no parole in the federal system, the (truth in sentencing( guidelines mandate that Bremner will likely serve all of the time imposed by the court. In the federal system, Bremner does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted primarily by the Office of Inspector General for the United States Department of Agriculture.
Three St. Clair County Women Indicted for Theft of Government Social Security BenefitsRead the Press Release
Follow @SDILNewsStephen R, Wigginton, United States Attorney for the Southern District of Illinois, announced the return of indictments by a Federal Grand Jury sitting in East St. Louis, Illinois, against three St. Clair County women alleging that they defrauded the Social Security Administration.
Lashonda Russell, 38, of Cahokia, Amber Dawn Adams, 33, of Fayetteville, and Tara Star Johndrow, 28, of Belleville, were indicted separately on April 23, 2014, on charges of Theft of Government Funds, which carry potential penalties of up to 10 years of imprisonment, fines of up to $250,000, and up to 3 years of supervised release to follow any period of incarceration.
The indictment against Russell alleged that between September of 2006 and March of 2013, she received more than $50,134 by falsely claiming and receiving Supplemental Social Security Income payments for a child that did not live with her and she did not support during the time frame alleged in the indictment.
The indictment against Adams alleges that between March of 2008 and August of 2012, she falsely claimed and received more than $9,000 in Title II – Survivor Benefits that were intended for the benefit of her child, when the child did not live her and she did not support the child during the time frame alleged in the indictment.
The indictment against Johndrow, alleges that between August of 2010 and August of 2012, she received $14,500 in Supplemental Social Security Payments from the Social Security Administration, when she falsely claimed to the government agency that she did not work during the time frame alleged.
Note: Any person charged is presumed innocent until proven guilty beyond a reasonable doubt. No person is required to prove their innocence.
Note that there may not always be supplemental materials like the Adobe Acrobat .pdf file below.
The investigation was conducted by the Social Security Administration, Office of the Inspector General and is being prosecuted by Assistant United States Attorney Ranley R. Killian.
Three Police Officers Plead Guilty to Accepting Bribes to Protect Drug DealsRead the Press Release
ATLANTA - Six defendants, including three former police officers, pleaded guilty this week in federal court to accepting thousands of dollars in cash payments to provide protection during staged drug deals which were part of a federal undercover operation.
“The audacity of police officers protecting drug deals is shocking,” said United States Attorney Sally Quillian Yates. “For these police officers, protecting and serving our citizens was little more than a slogan, and their brazen actions are unacceptable. Brave and honest law enforcement officers go to work every day to keep us safe, expecting their colleagues to serve the community unselfishly. Instead, these officers put greed before all else.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Public corruption investigations, particularly those involving law enforcement officers, remain one of the FBI’s top criminal investigative priorities. The FBI extends its gratitude to its ATF partners for highlighting the corruption aspect of its case early on which allowed the FBI to dedicate its investigative resources accordingly.”
“These defendants took an oath to uphold the law and protect the citizens,” said ATF Acting Special Agent in Charge Ray Brown. “Instead they betrayed the community they swore to protect. Officers like these unfortunately tarnish the badge worn proudly by the committed men and women of law enforcement. The success of this investigation would not have been possible without the dynamic level of law enforcement cooperation.”
According to United States Attorney Yates, the charges and other information presented in court: The undercover operation arose out of an ATF investigation of an Atlanta, Ga., area street and drug gang in August 2011. During the investigation, ATF agents learned from an individual associated with the gang that police officers were involved in protecting the gang’s criminal operations, including drug trafficking crimes. That individual could not specifically identify the officers but provided investigators with the officers’ nicknames. Shortly after the investigation began, three individuals who have pleaded guilty, Shannon Bass, Jerry Mannery, and Elizabeth Coss, none of whom were police officers, provided officers’ names to a police informant and told the informant that the officers would provide security for drug deals in exchange for cash.
The public corruption investigation, conducted by FBI and ATF agents, lead to the indictment of ten law enforcement officers. Three of the indicted officers have pleaded guilty. They are: former Stone Mountain Police Officer Denoris Carter, 43, of Lithonia, Ga., former DeKalb County Police Officers Dennis Duren, 33, of Atlanta, Ga., and Dorian Williams, 25, of Stone Mountain., Ga. All three officers were fired after their arrests in February 2013 and are no longer police officers.
In addition to the officers, three others pleaded guilty to their roles in the scheme: Shannon Bass, 39, of Atlanta, Ga., Elizabeth Coss, 36, also of Atlanta; and Jerry B. Mannery, 39, of Tucker, Ga.
Between April and September 2012, former Stone Mountain Police Department Officer Denoris Carter, working together with Jerry Mannery, provided protection for what he and Mannery believed were five separate transactions in the metro Atlanta, area which involved multiple kilograms of cocaine. For all five transactions, Carter was on duty and dressed in his police uniform. During one transaction, he drove up in his marked patrol vehicle, got out and walked through the parking lot to keep watch over the purported drug deal. During the final transaction, Carter was on foot and wore a gun on his belt. Denoris Carter pleaded guilty to one count of attempted distribution of cocaine and one count of extortion by accepting a bribe to use his position as a police officer to facilitate the deal.
Between October 2011 and November 2011, former DeKalb County Police Officer Dennis Duren, working together with Shannon Bass, provided protection for what he and Bass believed were four separate drug deals in the Atlanta area. During the transactions, Duren who was on duty, armed and in uniform, stood watch over the immediate area surrounding the undercover transaction. Dennis Duren pleaded guilty to one count of attempted distribution of cocaine and one count of extortion by accepting a bribe to use his position as a police officer to facilitate the deal. Bass pleaded guilty to attempted distribution of cocaine.
Between January and February 2013, former DeKalb County Police Officer Dorian Williams, working together with Mannery and Bass, provided protection for what he believed to be three drug deals involving multiple kilograms of cocaine. On each occasion, Williams was in uniform and carrying a gun. He used his marked police vehicle to patrol the parking lots where the deals took place. Williams admitted that he specifically protected the drug deals from interference from legitimate police officers. Dorian Williams pleaded guilty to one count of attempted distribution and one count of extortion by accepting a bribe to use his position as a police officer to facilitate a deal. Mannery pleaded guilty to conspiring with the police officers to distribute cocaine.
Elizabeth Coss pleaded guilty to attempted distribution of cocaine for her role in working with former MARTA police officer Marquez Holmes, to provide security for a drug deal in August 2012.
The Court will likely sentence the defendants this summer.
This case is being investigated by the Federal Bureau of Investigation and Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorneys Kim S. Dammers and Brent Alan Gray are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Three Chicago Men Indicted for Their Alleged Roles in A Series of Armed Robberies of 10 Retail Businesses in Chicago and SuburbsRead the Press Release
CHICAGO — Three Chicago men are facing federal charges for their alleged roles in a series of armed robberies of various retail businesses in Chicago and several suburbs late last year and early this year, federal law enforcement officials announced today. The indictments charge nine armed robberies and an attempted armed robbery of gas stations, convenience stores, jewelry stores, and others businesses in Chicago, Arlington Heights, Berwyn, Glenview, Hometown, Lincolnwood, North Chicago, Skokie, and Wilmette between October 2013 and February this year.
Two defendants, TYREE CRAIG, 29, and JACOBI PICKETT, 21, were charged together in a 13-count indictment returned by a federal grand jury yesterday. They were each charged with one count of robbery conspiracy, eight counts of robbery, two counts of brandishing a firearm during a violent crime, and Pickett alone was charged with being a felon-in-possession of a firearm.
Craig was also charged with JARRYL WILLIAMS, 42, in a separate four-count federal indictment involving the Jan. 10 armed robbery, involving four suspects, of James and Williams Jewelers, located at 7020 West Cermak Rd., in Berwyn. Craig and Williams were each charged with one count of robbery conspiracy, attempted robbery, and brandishing a firearm. Williams, who was shot by a store security officer, was also charged with being a felon-in-possession of a firearm with a partially obliterated serial number.
Craig and Williams have each pleaded not guilty to the charges involving the Berwyn attempted robbery. Craig and Pickett are scheduled to be arraigned on May 1 in U.S. District Court. Craig and Williams were initially arrested previously on related state charges but were later transferred to federal custody, where they remain. Pickett has been in federal custody since he was arrested in March on a criminal complaint.
According to the Craig and Pickett indictment returned yesterday, both defendants allegedly participated in the following robberies:
Dunkin Donuts, 3910 West Touhy Ave., Lincolnwood, on Oct. 20, 2013;
Phillips 66 gas station, 1234 Sheridan Rd., North Chicago, on Oct. 21, 2013;
Shell gas station, 9600 Crawford Ave., Skokie, on Oct. 21, 2013;
Shell gas station, 3 East Algonquin Rd., Arlington Heights, on Oct. 31, 2013;
Marathon gas station, 242 Waukegan Rd., Glenview, on Oct. 31, 2013;
Shell gas station, 5055 Touhy Ave., Skokie, on Nov. 30, 2013; and
Seven-Eleven, 500 Skokie Blvd., Wilmette, on Nov. 30, 2013.
Craig alone was also charged with the Dec. 13, 2013, robbery of Ted’s Jewelers, 5334 South Archer Ave., Chicago, while Pickett alone was charged with the Feb. 19, 2014, robbery of EZ Pawn store, 4080 Southwest Hwy., Hometown, in which jewelry valued at approximately $73,000 was stolen.
According to court documents, the charges stem from an FBI investigation of a series of similar armed robberies and attempted robberies last fall and winter of retail stores and businesses in Chicago, as well as northern and western suburbs. Typically, one or more participants entered each business and brandished a black semi-automatic handgun while demanding money or jewelry, and, in some instances Newport cigarettes. The participant or participants attempted to disguise their appearance but video surveillance provided a similar pattern of clothing and appearance.
The investigation is continuing.
Each count of robbery and robbery conspiracy carries a maximum penalty of 20 years in prison and a $250,000 fine, and each count of brandishing a firearm carries a consecutive, mandatory minimum of seven years in prison and a maximum of life. Williams and Picket also faces a maximum 10-year sentence on the felon-in-possession charges. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The indictments were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The case was investigated by the FBI’s Safe Streets Task Force, which is comprised of the FBI and the Chicago Police Department. The police departments in Chicago, Arlington Heights, Berwyn, Glenview, Hometown, Lincolnwood, North Chicago, Skokie, and Wilmette also assisted in the investigation, as well as the Illinois State Police.
The government is being represented by Assistant U.S. Attorneys Lindsay Jenkins and Angel Krull.
The public is reminded that indictments contain only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Craig/Pickett Indict.
Craig/Williams Indict.Tax Preparer Sentenced in Manhattan Federal Court to 102 Months in Prison for Filing False Tax Returns and Aggravated Identity TheftRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MAHAMADOU DAFFE, a tax preparer in Queens, New York, was sentenced today in Manhattan federal court to 102 months in prison for his participation in a conspiracy to steal government funds, theft of government funds, conspiracy to file false claims, wire fraud, and aggravated identity theft in connection with the preparation and filing of nearly 1,000 false income tax returns submitted online using stolen identities. DAFFE was also sentenced today in connection with his participation in a conspiracy to steal government funds, theft of government funds, and conspiracy to file false claims in connection with his use of stolen children’s identities to claim false dependents on his clients’ income tax returns. DAFFE was found guilty in January 2014 after a one-week trial before U.S. District Judge Naomi Reice Buchwald.
Manhattan U.S. Attorney Preet Bharara stated: “Tax preparer Mahamadou Daffe orchestrated schemes to file false returns on behalf of his clients and used stolen identities to deceive the IRS, all for his own unjust enrichment. His unscrupulous practices and flagrant violation of the law have now been justly punished.”
According to the Indictment, as well as evidence presented at DAFFE’s trial:
From 2008 through January 2013, DAFFE engaged in two separate schemes to defraud the Internal Revenue Service (“IRS”). DAFFE filed false tax returns for his tax preparation clients, in which he caused those clients to claim as dependents children who were in fact total strangers to them, and whose identities DAFFE stole. In exchange, DAFFE collected $1,000 per return.
In another scheme, during the same time frame, DAFFE used stolen identities to file hundreds of false tax returns, supported by bogus Forms W-2, through an online tax preparation service intended for use by individual taxpayers. He then funneled the resulting refunds into numerous bank accounts he controlled—accounts in his own name, the names of co-conspirators, and the names of aliases DAFFE and his co-conspirators used. DAFFE’s crimes resulted in a loss to the IRS of more than $1.5 million, during which he attempted to steal more than $4.5 million from the Government.
In addition to the prison term DAFFE, 31, of Queens, New York, was also sentenced to three years of supervised release.
Mr. Bharara praised the investigative work of the Internal Revenue Service, Criminal Investigation, and thanked the IRS for its assistance.
This case is being handled by the Office’s General Crimes Section. Assistant U.S. Attorneys Carolina A. Fornos and Sarah E. McCallum are in charge of the prosecution.
Tampa Woman Sentenced to More Than 6 Years in Prison for Tax FraudRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Tiki Simone Dennis to six years and two months in federal prison for tax fraud and aggravated identity theft. The court also ordered Dennis to pay $222,767.00 in restitution to the Internal Revenue Service. As part of her sentence, the court also entered a money judgment in the amount of $222,767.00, which constitutes the proceeds from the tax fraud. Dennis pleaded guilty on January13, 2014.
According to court documents, from an unknown date prior to January 6, 2011, through and including May 18, 2011, Dennis used stolen identities to electronically file more than 116 fraudulent federal income tax returns in order to obtain refunds to which she was not entitled. The value of the refunds that would have resulted from 116 of the returns fraudulently filed by Dennis totaled approximately $364,113. Although some of these returns were rejected by the IRS, 67 of them were accepted. The IRS paid out approximately $176,984 in tax refunds to debit cards under Dennis’s control. In addition, Dennis provided information to a co-conspirator who filed an additional 36 2010 tax returns requesting approximately $65,659. IRS accepted 25 of these returns and paid out $45,783 in tax refunds to debit cards under the control of Dennis. Altogether, the total number of fraudulent 2010 federal income tax returns that Dennis is responsible for filing or having filed is more than 152, requesting at least $429,772 in refunds. The total amount paid out on those requests to debit cards controlled by Dennis was at least $222,767.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service. It was prosecuted by Assistant United States Attorney and Senior Litigation Counsel, Donald L. Hansen.
St. Petersburg Armed Career Criminal Sentenced to 15 YearsRead the Press Release
Tampa, FL – U.S. District Judge James D. Whittemore today sentenced Martin E. Lyons (46, St. Petersburg) to 15 years in federal prison for being a convicted felon in possession of ammunition. Lyons pleaded guilty on December 12, 2013.
According to court documents, Lyons has multiple prior felony convictions for armed robbery and burglary. In July 2013, he sold Hydrocodone and crack cocaine to an undercover St. Petersburg Police Department detective, on multiple occasions. After advising the undercover detective that he could procure additional narcotics and firearms, Lyons sold him a loaded handgun and prescription pills. As a previously convicted felon, Lyons was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime and improve the quality of life in communities where law enforcement efforts are focused.
St. Louis Man Sentenced for Robbery of Cahokia Gas StationRead the Press Release
Case is One of Many Brought as a Result of United States Attorney Wigginton’s Metro-East Armed Robbery Initiative
Follow @SDILNewsA St. Louis man, Carvin G. Brooks, 33, was sentenced on April 24, 2014, for Interference of Commerce by Robbery (Hobbs Act Robbery), the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The Hobbs Act makes it a crime to obstruct, delay, or affect interstate commerce by robbery, and is used by United States Attorney Wigginton’s office as a way to combat armed robbery in the Southern District of Illinois. Brooks, was sentenced to a term of 120 months in federal prison, to be followed by a three (3) year term of supervised release, fined $300, and ordered to pay a $100 special assessment.
The Honorable Judge Michael J. Reagan sentenced Brooks to over twice the prison term recommended by the United States Sentencing Commission Guidelines Manual. This manual provides a guideline to the parties in a federal case as to what an appropriate sentence should be in a particular type of case. It does not, however, account for all of the factors relevant to a particular defendant or to a particular case. In this case, the United States successfully presented argument, as well as evidence, to show that a sentence within the advisory guideline range was not appropriate because, among other things, Brooks had extensive prior criminal conduct, the brutality of the robbery, and the likelihood that Brooks would continue to commit crimes when released from prison.
“This sentence was well deserved by a violent person who preyed upon the public. Although he was not armed, Brooks struck terror into this innocent victim. I will always fight for maximum sentences on behalf of the victims of violent crime.” said United States Attorney Wigginton.
Specifically, evidence showed that, prior to this robbery in Illinois, Brooks committed five prior violent crimes in Missouri. Evidence was introduced that Brooks stole a purse from an individual, striking her in the chest and knocking her down on April 1, 2003. The very next day, he broke into the home of another individual and threatened that individual with a knife during the course of the residential burglary. On April 12, 2003, Brooks’ crime spree continued when he committed two additional residential burglaries, threatening the individual in each with a knife. That same day, he followed another individual up to her front porch and robbed her. Brooks’ crime spree ended that day. On April 29, 2004, all of the cases were consolidated, and Brooks was sentenced to 15 years’ imprisonment in the Missouri Department of Corrections. Brooks was released on parole on November 1, 2011, but had his parole revoked on October 24, 2013, because of the commission of this offense.
On October 9, 2013, Brooks came to Cahokia, Illinois, and robbed the BP Station of $300. During the robbery, Brooks punched the female clerk several times in the head with a closed fist. She had to receive medical treatment for the injuries she sustained. The victim, who was approximately one foot shorter and approximately 75 pounds lighter than Brooks, testified at sentencing. She cried on the stand while recounting the brutal beating she withstood. Finally, among other factors, Judge Reagan noted that, because Brooks committed this robbery while on parole for the Missouri offenses, he showed a lack of respect for the law, and was likely to commit crimes in the future.
A tip from Crimestoppers led to Brooks’ arrest. This case was investigated by the Cahokia Police Department and prosecuted by Special Assistant United States Attorney Neal C. Hong.
St. Ignatius Rancher Pleads Guilty to Damaging Wetland on Flathead Reservation Brent PowellRead the Press Release
The United States Attorney's Office announced that St. Ignatius area rancher, Brent Powell, 54, pled guilty today in federal court in Missoula to violating the federal Clean Water Act by damaging a wetland on the Flathead Indian Reservation. Powell faces a possible 1 year in prison and a $25,000 per day fine.
In an Offer of Proof, the prosecutor told the Court that Powell operates B.P. Cattle Company on property that includes a wetland complex bordering Sabine Creek and Mission Creek in Lake County, Montana, which are waters of the United States. These wetlands also lie within the Flathead Indian Reservation.
Through investigative interviews and a check of tribal records, the Environmental Protection Agency Criminal Investigation Division (EPA-CID) established that in 2004, Powell failed to submit a Tribal Application for the Alteration of Aquatic Land or Wetland on the Flathead reservation, known as an 87A (ALCO), before he performed work in wetlands along Pistol Creek. As a result of the 2004 Clean Water Act 404 violations, the United States Army Corps of Engineers issued Powell a cease and desist order for the activities on Pistol Creek and Powell was required to remediate the area.
Undeterred, in 2010, Powell again dredged several channels on his property in an effort to drain the wetlands and extend his agricultural land along the Sabine and Mission Creeks. The dredged material was cast off beside the channels and remained within the wetland area. As a result of the work, heavy sediment was observed in the manmade channels, and cloudy water was observed flowing into Sabine Creek from manmade channels.
EPA-CID conducted interviews and reviewed documents that show Powell again failed to submit a Tribal Application for the Alteration of Aquatic Land or Wetland on the Flathead reservation, before he performed work along Sabine Creek.
In March 2010, the United States Army Corp of Engineers, EPA-CID, and Flathead tribal environmental specialists participated in an on-site inspection of the disturbed wetland area; they described the disturbance of wetland and riparian vegetation as very extensive. The disturbance of the wetland area includes approximately seven different areas in which soil was dredged from the wetland area and side-casted along the trenches into waters of the United States.
U.S. Attorney Mike Cotter lauded the work of EPA-CID, the Army Corps of Engineers and the environmental specialists of the Flathead Tribe, "The cooperative effort by federal and Tribal environmental enforcement agencies in this case resulted in a criminal violation of environmental laws being successfully prosecuted. This kind of prosecution sends the strong message that we will aggressively protect the waters and wetlands of Montana that all of us enjoy and upon which a healthy environment depends."
Shady Spring Woman Sentenced for Selling OxycodoneRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced that Phyllis Morris, age 38, was sentenced today in Beckley, West Virginia, by United States District Court Judge Irene C. Berger to one year in federal prison. Morris previously plead guilty in January of 2014, to distributing oxycodone, a powerful and addictive prescription pain killer. Morris admitted that in March of 2013, she sold oxycodone pills to a confidential informant who was working with the Beckley Police Department Drug Unit. The drug deal took place at a restaurant/bar in Shady Spring, West Virginia.
The case was investigated by the Beckley/Raleigh County Drug and Violent Crime Unit.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin.
Sentencing for April 17 - 23, 2014Read the Press Release
Eugene Velarde, 48, of Denver, Colorado, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 23, 2014, for conspiracy to possess with intent to distribute, and to distribute, 687 grams of methamphetamine. Velarde was arrested in Denver, Colorado. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $1,900.00 fine and a $100.00 special assessment. This case was investigated by the Albany County Sheriff’s Office and the U.S. Drug Enforcement Administration.
Joshua Guidry, 35, of Denver, Colorado was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 22, 2014, for conspiracy to possess with intent to distribute, and to distribute, 134 grams of methamphetamine. Guidry was arrested in Denver, Colorado. He received 57 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Pablo Vargas-Adame, 33, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 21, 2014, on one count of conspiracy to possess with intent to distribute, and to distribute, between 1.5 and 5 kilograms of a mixture or substance containing a detectable amount of methamphetamine and on two counts of distribution of methamphetamine and aiding and abetting. Vargas-Adame was arrested in Rock Springs, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, was ordered to pay a $300.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Tabitha Overgard, 37, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 21, 2014, for conspiracy to possess with intent to distribute, and to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Overgard was arrested in Cheyenne, Wyoming. She received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $300.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Austin D. Anderson, 19, of Wheatland, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 21, 2014, for possession of stolen firearms. Anderson was arrested in Rawlins, Wyoming. He received 33 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Austin Tuft, 34, of Rock Springs, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 18, 2014, for production of child pornography. Tuft was arrested in Rock Springs, Wyoming. He received 264 months imprisonment, to be followed by a life-time term of supervised release, and was ordered to pay a $2,900.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Donald Shaw, Sr., 57, of Apple Valley, California, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 17, 2014, for conspiracy to possess with intent to distribute, and to distribute, 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Shaw was arrested in Rock Springs, Wyoming. He received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Sentences Imposed for Charleston West Side Heroin and Crack DealersRead the Press Release
Charleston, W.Va. – Defendants Deandre Coleman, 22, and Jamaal Davis, 23, were sentenced today by U.S. District Judge John T. Copenhaver, Jr., to five years of probation. Coleman previously pled guilty on January 21, 2014, admitting that on July 9, 2013, he sold a confidential informant working with the Metropolitan Drug Enforcement Network Team (“MDENT”), cocaine base, also known as “crack”, for $100.00 at his Roane Street residence. Davis, who also pled guilty on January 2, 2104, admitted that he sold heroin for $180.00 to the same informant at Coleman’s Roane Street residence on June 13, 2013.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Seminole Man Sentenced to More Than 20 Years in Federal Prison for Child Pornography OffensesRead the Press Release
Tampa, FL – U.S. District Judge Elizabeth A. Kovachevich today sentenced Michael J. Charniak (50, Seminole) to 21 years and 10 months in federal prison for transporting and receiving child pornography over the Internet. Charniak was also ordered to serve a lifetime term of supervised release, following his incarceration, and to register as a sex offender. The sentence was imposed consecutive to the 15-year sentence Charniak is currently serving in the Florida Department of Corrections for a 2009 sexual battery conviction. Charniak pleaded guilty to the federal offense on January 23, 2014.
According to court documents, Charniak traded numerous videos and images of child pornography from multiple email addresses between 2002 and 2009. In October 2009, law enforcement executed a federal search warrant at Charniak’s residence. During an interview, he confessed to downloading and transporting child pornography.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Pinellas County Sheriff’s Office (PCSO). It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
It is another 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.
Radford Man Sentenced for Operating Ponzi SchemeRead the Press Release
ROANOKE, VIRGINIA – A Radford, Va., man who bilked investors out of more than $620,000 with promises of high interest returns on investments in his company, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke to federal fraud charges.
Charles G. Shomo, 63, of Radford, Va., previously pled guilty to three counts of mail fraud, two counts of securities fraud and one count of money laundering. The defendant entered his guilty pleas today without the benefit of a plea agreement. Today in District Court, Shomo was sentenced to 42 months in federal prison.
“Mr. Shomo stole the life savings of dozens of his customers, many of them elderly,” United States Attorney Timothy J. Heaphy said today. “While he is required to provide restitution, Mr. Shomo cannot restore the lost sense of trust that he stole from his victims.”
This case is the result of a thorough and cooperative investigation by the United States Postal Inspection Service, the Virginia State Corporation Commission, and the Commonwealth’s Attorneys’ Offices for Giles, Smyth, Floyd and Wythe counties, along with the Sheriff’s Offices for Giles, Smyth, Floyd, Wythe, Rockbridge counties, the City of Pulaski and the Pearisburg Police Department.
All total, Shomo obtained approximately $620,000 from over thirty victims, most of who were over the age of 65 and residing in the Western district of Virginia.
According to the indictment, in 1999 Shomo founded P&G Enterprises LLC, a business originally established to purchase and set-up retail ATM and credit card processing systems throughout Virginia, West Virginia and North Carolina. P&G purportedly developed revenue from fees charged to users who obtained cash from P&G ATMs and from retailers that used P&G’s credit card processing service.
It is alleged that between December 2006 and June 2013 Shomo solicited investors under the representation that investor funds would be used to load ATM units and generally fund the operation of the ATM business. In return, Shomo offered investors promissory notes that typically matured over a one-year time period and paid an annualized interest rate of at least 5.95 percent. Unbeknownst to investors, Shomo was using investor funds for his personal expenses and to help fund an unrelated scooter business.
Additionally, Shomo is accused of using new investors’ funds to pay existing P&G note holders. The indictment claims that between March 2010 and June 2013, Shomo received in excess of $620,000 in proceeds from the sale of P&G promissory notes to investors.
Assistant United States Attorney C. Patrick Hogeboom III and Gauhar R. Naseem, Associate General Counsel-Financial Services, Office of General Counsel for the Virginia State Corporation Commission will prosecute the case for the United States.
Previously Deported Mexican National Charged with Passport Fraud, Aggravated ID Theft, Drug and Firearm OffenseRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a six-count superseding indictment today against Eliecer Reyes Huerta, 31, a Mexican national residing in Vallejo, adding charges of possessing methamphetamine and cocaine with intent to distribute, and unlawfully possessing a firearm, United States Attorney Benjamin B. Wagner announced. On December 19, 2013, Huerta was indicted for making false statements in connection with applications for United States passports and aggravated identity theft.
According to court documents, on July 30, 2012, Huerta filed an application for a U.S. passport, falsely stating that his name was Jose Manuel Ventura Ruiz and that he was born in Puerto Rico. In fact, Huerta is an alien who was previously deported to Mexico. In October 2012, Huerta again falsely stated that his name was Jose Manuel Ventura Ruiz, this time in connection with an application for a U.S. passport for a minor.
According to court documents, in January 2014, when law enforcement agents executed search warrants at Huerta’s home, they discovered methamphetamine and cocaine packaged in plastic bags, scales, and a handgun.
This case was the product of an investigation by the U.S. State Department’s Diplomatic Security Service with assistance from the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, and Firearms. Assistant United States Attorney Nirav Desai is prosecuting the case.
Huerta is in custody on the pending charges and will be arraigned on the superseding indictment on May 30, 2014.
If convicted, Huerta faces the following maximum sentences: for either passport fraud offense — 10 years in prison and a $250,000 fine; for aggravated identity theft — two years and a $250,000 fine; for the methamphetamine-related offense — five to 40 years in prison and a $5 million fine; for the cocaine-related offense — 20 years in prison and a $1 million fine; for the firearms offense — 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Pinedale, N.M., Man Pleads Guilty to Federal Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Ramsey Litzin, 20, an enrolled member of the Navajo Nation who resides in Pinedale, N.M., pleaded guilty this morning to a felony information charging him with involuntary manslaughter.
Litzin was arrested on Nov. 15, 2013, on a criminal complaint alleging that he killed a 27-year-old Navajo man by stabbing him to death in the early hours of Nov. 12, 2013, in Pine Dale, N.M., which is located within the Navajo Indian Reservation. Court filings reflect that Litzin was intoxicated when he killed the victim during a physical altercation between the two men.
During today’s plea hearing, Litzin pleaded guilty to an involuntary manslaughter charge and admitted killing the victim by stabbing him with a knife. In his plea agreement, Litzin admitted that he armed himself with a knife prior to a physical fight with the victim and stabbed the victim approximately 23 times with the intention of causing the victim to sustain serious bodily injury and knowing his actions could result in the victim’s death. Although most of the stab wounds were superficial, at least three stab wounds contributed to the victim’s death. Litzin stated that he was angry, intoxicated and had been struck by the victim when he stabbed the victim to death.
Litzin has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Litzin faces a statutory maximum penalty of eight years in federal prison.
The case was investigated by the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Niki Tapia-Brito.
Pine Bluff Couple Sentenced for Theft of Government Property from the NCTRRead the Press Release
LITTLE ROCK - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Lee Anne Branch and Kyle Branch, both 41 of White Hall, Arkansas appeared before United States District Judge D. P. Marshall, Jr. to be sentenced for theft of government property. Judge Marshall sentenced Lee Anne Branch to 30 months’ imprisonment to be followed by 3 years’ supervised release. Kyle Branch was sentenced to 20 months in prison followed by 3 years’ supervised release. Judge Marshall also ordered the Branches to pay $248,535 to the NCTR.
On November 21, 2013, the Branches waived indictment and pled to an Information charging them with one count of theft of government property. When entering their pleas, the Branches admitted that they voluntarily, intentionally and knowingly stole items of value that belonged to the United States with the intent to deprive the owner of the use or benefit of the items taken. At the time of their plea, they also agreed to forfeit all interests in all property that was used to commit their theft and any proceeds of their sale of government property including a 1998 Baja Outlaw Boat with a Mercruiser motor and SPRS Trailer. When pronouncing the sentence for the Branches, the Judge stated that he took into consideration Kyle’s medical condition, namely cancer. Judge Marshall recommended that Kyle be placed in a medical facility close to Central Arkansas. Lee Anne was ordered to report to the Bureau of Prisons June 9, 2014, and Kyle was given until September 30, 2014 to report.
The charge was the result of a scheme to steal property that was being transferred from the Pine Bluff Arsenal (PBA) as they were breaking down buildings and equipment associated with the chemical weapons destruction. Lee Anne Branch was employed at the National Center for Toxicological Research (NCTR). She was in charge of property and the process of obtaining property from other federal agencies. Lee Ann stole the transferred property, by personally picking up pallets of items from the PBA in a box truck. The truck would be driven to a private storage unit she rented in White Hall instead of taking them to the NCTR and entering them into the NCTR inventory. Kyle Branch then sold the stolen items from the storage unit through multiple means including sales on eBay and Craig’s List.
A third defendant, Travis Love Donald, age 38, of Sherwood, also pled guilty on November 21, 2013, to the theft of government property charged in the Information. He is scheduled to be sentenced by United States District Judge D.P. Marshall, Jr. on May 22, 2014.
The United States Attorney acknowledges the valuable assistance of the Little Rock Field Office of the Federal Bureau of Investigation, U.S. Army CID, NCTR, and the Jefferson County Sheriff’s Office for their dedication to this investigation. Assistant United States Attorney Edward Walker prosecuted this case for the United States.
Philadelphia Business Owner and Associate Charged in Murder-For-Hire Plot That Involved Atlantic City ShootingRead the Press Release
CAMDEN, N.J. – Two Philadelphia men are scheduled to appear in court today on charges of conspiracy, murder for hire and aiding and abetting the use of a firearm related to a shooting in Atlantic City, N.J., last year, U.S. Attorney Paul J. Fishman announced.
Ronald Galati, 63, and Jerome Johnson, 45, will have their initial court appearances before U.S. District Judge Joseph H. Rodriguez in Camden federal court. They were each charged in an indictment – returned by a federal grand jury on April 2, 2014, and unsealed today – with conspiring with Ronald Walker, 48, of Philadelphia, and Alvin Matthews, 46, of Brookhaven, Pa., to shoot and kill an individual in Atlantic City, N.J., on Nov. 30, 2013. Johnson was also charged with transporting a firearm for use during the commission of a felony, transferring a firearm for use in a crime of violence and being a previously convicted felon in possession of a firearm.
According to documents filed in this case and statements made in court: Galati owned and operated American Collision & Automotive Center (American Collision) in Philadelphia. At various times, Johnson has worked there for Galati. Prior to June 2013, Galati allegedly began saying he was going to kill a person identified as “Victim One.” In June 2013, Galati, members of Galati’s family and associates of Galati had dinner with Victim One at a restaurant in Northfield, N.J. During dinner, Galati took Victim One into the kitchen and threatened to kill him.Galati and Johnson allegedly approached Walker and Matthews and asked them to kill Victim One in a way that would not implicate Galati. Galati promised to pay Walker and Matthews to shoot and kill Victim One.
Galati provided Walker and Matthews with several addresses associated with Victim One, including an address in the vicinity of Broad and Snyder streets in Philadelphia. In November 2013, in an attempt to find and kill Victim One, Johnson took Walker and another individual to Victim One’s home in Philadelphia. Finding the home empty, the other individual broke into Victim One’s home and vandalized it while Walker waited outside.
On Nov. 29, 2013, Johnson gave Matthews a Colt .25 caliber semi-automatic handgun. The next day, Johnson telephoned Walker and Matthews and arranged to meet them. At some point Galati called Johnson and told him that Victim One was in New Jersey. Johnson drove Walker and Matthews to Atlantic City and told them if there was a woman with Victim One, she was not to be harmed. While in Johnson’s vehicle, Matthews gave Walker the handgun he received from Johnson the day before. Johnson then dropped Walker and Matthews off around the corner from Victim One’s home.
When Victim One and a woman came out of a house, Walker and Matthews approached them and Walker shot Victim One with the Colt .25 caliber semi-automatic handgun, striking Victim One multiple times. The victim survived the shooting.
The count of conspiracy to commit murder for hire (Count 1) and the murder-for-hire count (Count 3) each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. The count of conspiracy to possess and use a firearm during a crime of violence (Count 2) carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The count of aiding and abetting the possession and use of firearm during a crime of violence (Count 4) carries a mandatory minimum consecutive prison sentence of 10 years and maximum of life and a $250,000 fine.
The additional counts with which Johnson is charged, knowingly transporting a firearm for use during the commission of a felony (Count 5), knowingly transferring a firearm for use in a crime of violence (Count 6) and being a previously convicted felon in possession of a firearm (Count 7), each carry a maximum potential penalty of 10 years in prison and a $250,000 fine.
On March 17, 2014, Matthews and Walker pleaded guilty before U.S. District Judge Joseph H. Rodriguez to a three-count information charging them with conspiracy to use interstate commerce facilities in the commission of a murder for hire; use of a firearm, and aiding and abetting the use of a firearm, in furtherance of a crime of violence, and with being a previously convicted felon in possession of a firearm. Matthews’ and Walker’s sentencings are schedule for June 30, 2014.
U.S. Attorney Fishman credited special agents of the FBI under the direction of Special Agent in Charge Aaron T. Ford; special agents of the ATF, under the direction of Special Agent in Charge Robin Shoemaker; and detectives of the Atlantic City Police Department, under the direction of Chief Henry White, for the investigation the case. He also thanked the Philadelphia District Attorney’s Office, under the direction of District Attorney R. Seth Williams, detectives of the Philadelphia Police Department, under the direction of Commissioner Charles Ramsey; and troopers of the Pennsylvania State Police, under the direction of Commissioner Frank Noonan, for their assistance.
The government is represented by Assistant U.S. Attorneys Jason M. Richardson and Matthew T. Smith of the U.S. Attorney's Office Criminal Division in Camden.
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Defense counsel: Galati: Anthony Voci Esq. Philadelphia
Johnson: TBDGalati, Ronald, and Johnson, Jerome Indictment
Parkville Man Pleads Guilty to Sex Trafficking of A MinorRead the Press Release
Baltimore, Maryland – Rodney Hubert, a/k/a “Noah,” age 39, of Parkville, Maryland pleaded guilty today to sex trafficking of a minor.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, in January 2013, Hubert, a registered sex offender in Maryland, recruited girls, some of whom were underage, to engage in prostitution. He offered a finder’s fee to young prostitutes if they found additional girls to prostitute for them.
Hubert took explicit photos of girls which he posted on internet websites that hosted ads for prostitution. He provided a residence in Parkville to host “in-call” local prostitution. He also instructed the girls on how to use a phone application to communicate with prospective customers and avoid detection by law enforcement.
Hubert sought a 19-year-old associate to work for him as a prostitute beginning in December 2012. Hubert offered her a commission to recruit a 16-year-old Baltimore resident to perform prostitution for him. Hubert invited the 16 year old to reside with him. The 16 year old girl had sex with customers on at least five occasions in the Parkville house, and on at least seven occasions at other locations, as directed by Hubert.
Hubert offered to pay the 16 year old girl $400 dollars to take provocative photos of her wearing lingerie. She posed for the photos taken by Hubert, although Hubert never paid her the promised fee. He did, however, use these photos to post online prostitution ads. Hubert also offered to pay her $1,000 to make a pornographic film with him in which they would engage in sex.As part of his plea agreement, Hubert must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Hubert and the government have agreed that if the Court accepts the plea agreement, Hubert will be sentenced to between 168 and 262 months in prison followed by a lifetime of supervised release. U.S. District Judge George L. Russell III has scheduled sentencing for August 1, 2014 at 2:00 p.m.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department and Baltimore County State’s Attorney’s Officefor their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Mark W. Crooks, who prosecuted the case.
Pair Sentenced for Their Roles in $4.4 Million False Income Tax Refund Fraud SchemeRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO -- Mercedes Emelinda-Silie, 41, of Grove City, Ohio was sentenced to 36 months in prison, three years of supervised release, and ordered to pay $4,415,492.58 in restitution to the Internal Revenue Service (IRS) for her role in a conspiracy to defraud the IRS by filing false claims for federal income tax refunds.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office; and Dugan T. Wong, Inspector in Charge, U.S. Postal Inspection Service announced the sentence that was handed down by U.S. District Judge Gregory L. Frost.
On April 4, 2014 Jose Luis Martinez, 47, of Columbus, Ohio was sentenced by U.S. District Judge Gregory L. Frost to 60 months in prison, three years of supervised release, and ordered to pay $4,415,492.58 in restitution to the IRS for his role in a conspiracy to defraud the IRS by filing false claims for federal income tax refunds and for operating an unlicensed money transmitting business.
According to court documents, during 2010 and 2011 Martinez and Silie jointly owned and operated San Isidro Cargo in Columbus. San Isidro Cargo was registered with the U.S. Treasury Department as a Money Service Business to provide services such as check-cashing, wire transfers, tax-preparation, notary services, and title services among others.
Martinez operated San Isidro Cargo without a check-casher’s license knowing that one was required by the Ohio Revised Code. Martinez used San Isidro Cargo to assist co-conspirators, primarily located in New York and New Jersey, in carrying out the income tax refund scheme which came to be known as “Operation Mass Mail.”
This scheme involved the mass filing of hundreds of false income tax returns with Social Security Numbers and identifying information of residents of Puerto Rico. The false income tax returns contained fictitious information including employee wages and employee withholding. The false income tax returns were accompanied by counterfeit Forms W-2 that used, without legal authority, the names and Employer Identification Numbers of legitimate U.S. businesses. The income tax refund checks were mailed to pre-arranged addresses, usually apartments in New York. Many of the income tax refund checks shared the same street address, but different apartment numbers, making it easier for co-conspirators to collect the checks from one location. The checks were collected by corrupt letter carriers and apartment managers or by other perpetrators who simply waited for the checks to be delivered by unknowing mail carriers. The conspirators then used couriers to travel to other states, including Ohio, to cash the checks at various check-cashing services, including San Isidro Cargo.
Martinez and Silie knew the U.S. Treasury checks they received from persons from New York and New Jersey stemmed from fictitious income tax returns. Martinez and Silie also knew the endorsements on the checks were forged. Martinez allowed one individual to cash bulk quantities of sizable income tax refund checks bearing the names of others and addresses located primarily in New York. Silie made several over the counter cash withdrawals and provided these funds to co-conspirators. Martinez and Silie received and retained copies of hundreds of counterfeit driver’s licenses from co-conspirators in order to conceal the fraudulent nature of the scheme.
Everyone involved in the scheme, from the income tax return preparer to the check-casher, was paid a cut of the fraudulent income tax refund. Martinez charged a fee of seven to eight percent of check’s face value. This fee was a premium for the conversion of the ill-gotten checks, and was well above the three percent fee permitted by Ohio Revised Code for the cashing of government checks, and the two percent fee charged to legitimate customers.
After San Isidro Cargo’s bank accounts were closed by the bank, Martinez continued the scheme by recruiting others to cash the fraudulent checks on their own bank accounts.
From February 2010 through February 2011, Martinez, Silie and others assisted in the conversion and laundering of approximately 696 fraudulently obtained U.S. Treasury checks totaling $4,415,492.58. During 2010, Martinez, Silie and others conducted bank withdrawals in excess of $4 million from San Isidro Cargo’s business accounts.
A third person, Suheidy A. Warner, 30, of Columbus, was also charged in this case in an April 2013 indictment alleging one count of conspiracy to defraud the IRS by filing false claims for federal income tax refunds, one count of conspiracy to commit money laundering, four counts of aggravated identity theft and 25 counts of converting U.S. monies to her own use. Warner is currently a fugitive.
“These defendants systematically defrauded the government and the taxpaying public and these sentences demonstrate our unwavering commitment to protecting the interests of law-abiding taxpayers,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “We will continue to partner with the U.S. Attorney’s Office and U.S. Postal Inspection Service in investigating the criminals who engage in such brazen and fraudulent conduct, ensuring that the only citizens who receive tax refunds are those who are entitled to them.”
These cases were prosecuted by Assistant United States Attorney Daniel Brown and they were investigated by special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service.
# # #Owner of Baton Rouge Pharmacy Pleads Guilty <br /> for Directing $2.2 Million Health Care Fraud SchemeRead the Press Release
The owner of a Louisiana pharmacy pleaded guilty today for directing a $2.2 million Medicare fraud scheme to repackage and redistribute prescription medications.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, Interim U.S. Attorney J. Walter Green of the Middle District of Louisiana, Special Agent in Charge Mike Fields of the Dallas Region of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), Special Agent in Charge Michael Anderson of the FBI’s New Orleans Division and Louisiana State Attorney General James Buddy Caldwell made the announcement.
Mona Patrice Carter, 47, pleaded guilty before U.S. District Judge James J. Brady of the Middle District of Louisiana to one count of health care fraud. Sentencing will be determined at a later date.
Carter admitted that she owned and operated Community Pharmacy 1, a Baton Rouge pharmacy. From 2007 through December 2013, Carter paid employees of Community Pharmacy clients, including nursing homes and mental health facilities, to collect and return unused prescription drugs. When these drugs were returned to Community Pharmacy, Carter directed her employees to re-package them. Community Pharmacy then re-distributed these drugs as if they were new and billed Medicare as if they were being distributed for the first time – effectively billing Medicare twice for the same medications.
Carter admitted that from January 2008 through February 2013, she caused $2,245,515 in fraudulent billings to Medicare for prescription medications.
The case was investigated by HHS-OIG, the FBI, and the Medicaid Fraud Control Unit of the Louisiana State Attorney General’s Office and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section. This case is being prosecuted by Trial Attorney William G. Kanellis of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Operator of 18 Chinese-Language Child Pornography Websites Sentenced to 210 Months in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that YONG WANG was sentenced today in Manhattan federal court to 210 months in prison for advertising in connection with the sexual exploitation of children through 18 Chinese-language child pornography websites he owned and operated. WANG pled guilty in May 2013 and was sentenced today by U.S. District Judge Paul G. Gardephe.
Manhattan U.S. Attorney Preet Bharara said: “With today’s sentence, Yong Wang will be punished – with a loss of his liberty – for earning a living at the expense of innocent children by operating a vast network of illicit child pornography websites from the comfort of his home. Those who conduct businesses that capitalize on the sexual exploitation of children should understand that this Office and its law enforcement partners have no tolerance for such operations and are actively working to shut them down.”
According to documents filed in Manhattan federal court and statements made in related court proceedings:
WANG maintained 18 Chinese-language websites out of his apartment in Flushing, New York. Members of the websites could access numerous links to an extensive child pornography collection that included images and videos of children exposing their genitals, engaging in sexually explicit conduct with adults, and in sadistic and/or masochistic depictions. To access the websites, individuals had to purchase a “VIP membership” or accumulate a certain number of points. WANG charged customers $25 for a quarterly membership and $100 for a lifetime membership. Undercover FBI agents registered for a VIP membership with WANG and gained access to one of the websites entitled - in Chinese - “Empire of the Young and Innocent Fragrances.” On the website, users were directed to different forums with links that were titled with descriptive names, such as “Young Young Empire,” “Young Girl Beauty Photos Military Region,” “Young Boy Movie Zone,” and “Exclusive Quality Young Girl Photos Set.” WANG made in excess of $700,000 in connection with his operation of these websites.
In addition to the prison term, WANG, 28, a citizen of China who resided in Flushing, New York, was ordered to pay $750,000 in forfeiture, representing the proceeds he obtained from operating the child pornography websites, and a $250,000 fine.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He also thanked the Chinese Ministry of Public Security for their cooperation and assistance.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Rosemary Nidiry is in charge of the prosecution and Assistant U.S. Attorney Alexander Wilson is in charge of the forfeiture aspects of the case.
New York City Employee Charged in Manhattan Federal Court with Medicaid FraudRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Mark G. Peters, the Commissioner of the New York City Department of Investigation (“DOI”), announced today the arrest of AKIM MURRAY, an employee of the Medicaid Reimbursement Unit of the New York City Human Resources Administration (“HRA”), for Medicaid fraud. The Complaint alleges that MURRAY, an HRA Eligibility Specialist whose job involved issuing reimbursements for Medicaid-eligible expenses, manipulated the system in order to have hundreds of thousands of dollars’ worth of checks issued to his friends and criminal associates, who in turn gave him a substantial cut of the proceeds. MURRAY was taken into custody this morning, and is expected to be presented this afternoon in Manhattan federal court before Chief U.S. Magistrate Judge Kevin Nathaniel Fox.
Manhattan U.S. Attorney Bharara said: “Akim Murray was supposed to make sure that Medicaid benefits went to people eligible for the program. Instead, as alleged, Murray abused his position as a New York City employee and diverted hundreds of thousands of dollars earmarked for people in need to line his own pockets and those of his friends. Such abuses cannot and will not be tolerated by this Office and our law enforcement partners.”
FBI Assistant Director-in-Charge Venizelos said: “As alleged in the complaint, Murray used his position as an HRA Eligibility Specialist to profit off of a system designed to help those in financial distress obtain medical assistance. Health care fraud increases costs for everyone, wastes tax dollars, and destroys the integrity of our health care system. The FBI, along with our federal, state and local law enforcement partners, is committed to investigating this type of fraud and hold accountable those who take advantage of our government health care programs.”
DOI Commissioner Peters said: “This public servant used Medicaid benefits as a treasure trove to enrich himself and his cohorts, creating an intricate criminal network of kickbacks, according to the charges. This investigation shows that gaming the system to siphon public funds away from eligible individuals will only lead to arrest.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:
Medicaid is a federally-funded program designed to provide low-income families with affordable health care. The New York City Human Resources Administration oversees the program and processes applications from New York City residents. Under Medicaid, individuals who successfully apply for Medicaid coverage can be reimbursed for eligible expenses submitted in the approximately three-month period prior to the application (“Pre-Enrollment Services”). In order to be reimbursed for Pre-Enrollment Services, the successful Medicaid applicant requesting reimbursement must provide proof that he or she made eligible health care payments out of pocket before applying for Medicaid. City employees known as Eligibility Specialists, working for HRA’s Medicaid Reimbursement Unit, receive and process requests for reimbursement using a computer system, and make recommendations for HRA supervisors as to whether a request should be approved.
From at least July 2009 until September 2010, MURRAY, an HRA Eligibility Specialist, exploited loopholes in HRA’s computer systems to both recommend and then separately approve the issuance of Medicaid reimbursement checks without meaningful oversight. MURRAY used the personal identifying information of his co-conspirators to create and unilaterally approve requests for reimbursement checks in their names. When the checks were sent to his friends and other associates, MURRAY demanded that they cash the checks and give him between 50-70% of the proceeds. MURRAY approved hundreds of thousands of dollars in Medicaid reimbursement requests without proper oversight.
MURRAY, 52, of New York, New York, is charged with one count of conspiracy to commit mail fraud and health care fraud, one count of mail fraud, and one count of health care fraud, which carry maximum sentences of 20 years, 20 years, and 10 years in prison, respectively. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Bharara thanked and praised the DOI and the FBI’s Health Care Fraud Task Force for their work in this investigation, which he noted is ongoing. The New York FBI Health Care Fraud Task Force was formed in 2007 in an effort to combat health care fraud in the greater New York City area. The task force comprises agents, officers, and investigators from the FBI, NYPD, the New York State Insurance Fraud Bureau, U.S. Department of Labor, U.S. Office of Personnel Management Inspector General, U.S. Food and Drug Administration, New York State Attorney General’s Office, New York State Office of Medicaid Inspector General, New York State Health and Hospitals Inspector General, and the National Insurance Crime Bureau.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorney Martin S. Bell is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Akim Murray Complaint
New Mexico Man Charged with Federal Hate Crime for Threats Against BusinesswomanRead the Press Release
A federal grand jury returned a two-count indictment against John W. Ng, 58, of Albuquerque, New Mexico, charging him with hate crime offenses related to anti-Semitic threats he made against a Jewish woman who owns and operates the Nosh Jewish Delicatessen and Bakery in Albuquerque.
Ng was arrested by the FBI on March 7, 2014, based on a criminal complaint alleging that he interfered with the victim’s federally protected rights by threatening the victim and interfering with her business because of her religion and because she owned a Jewish restaurant. According to the indictment, on Jan. 22, 2014, and Feb. 8, 2014, Ng allegedly posted threatening, anti-Semitic notes on the door of the victim’s business. One of the notes allegedly read, “TO: The [racial slur] who should die.” Another allegedly read, “FROM: The one you scarred for life scumbags [;] TO: The [racial slur] who will die like rats.”
Ng was arrested by the FBI on March 7, 2014. He remains in federal custody pending completion of a psychiatric competency and dangerousness examination.
An indictment merely establishes probable cause, and Ng is presumed innocent unless proven guilty. Each count carries a maximum statutory penalty of one year in prison.
This matter was investigated by the Albuquerque Division of the FBI and is being prosecuted by Assistant U.S. Attorney Holland S. Kastrin of the U.S. Attorney’s Office for the District of New Mexico and Trial Attorney Angie Cha of the U.S. Department of Justice’s Civil Rights Division.
New London Man Sentenced to 30 Months in Prison for Distributing HeroinRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that EMMANUEL BLANCO BALBUENA, also known as “Manny,” 29, of New London, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 30 months of imprisonment, followed by three years of supervised release, for distributing heroin.
In early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. The investigation revealed that Luis Ariel Capellan Maldonado, also known as “Ariel,” and his associates were receiving heroin from sources in the Dominican Republic and distributing it throughout New London County. Court-authorized wiretaps and physical surveillance revealed that BALBUENA regularly purchased distribution quantities of heroin from Capellan Maldonado and then sold the drug to his own customers in New London and Norwich.
BALBUENA has been detained since his arrest on April 3, 2013. On January 6, 2014, he pleaded guilty to one count of conspiracy to possess with the intent to distribute heroin.
More than 100 individuals have been charged with federal and state offenses as a result of this investigation. Maldonado has pleaded guilty and awaits sentencing.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal cases are being prosecuted by Assistant U.S. Attorneys Alina P. Reynolds, Sarah P. Karwan and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
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U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]New Jersey Doctors Sentenced to Five Years in Prison in Online Pill Mill CaseRead the Press Release
A New Jersey doctor was sentenced to five years in prison for this role in a multi-state drug conspiracy that sent millions of dollars of highly addictive prescription painkillers across the country, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
U.S. District Judge Solomon Oliver sentenced Dr. Terence Sasaki to 60 months in prison and ordered him to pay $59,133 in restitution. Sasaki was convicted on charges of conspiracy to distribute controlled substances and conspiracy to launder money.
Thirteen people have now been sentenced for their roles in the drug conspiracy, including doctors, pharmacists, a call-center manager and others.
“This is one of the more egregious pill mill cases we have ever come across,” Dettelbach said. “Prescription drug abuse is a major problem. Whether it is an Internet-based pill mill or a local dentist handing out prescriptions, we are committed to stopping those who illegally distribute drugs.”
Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation said: “This is an important victory for the citizens of Northern Ohio. These individuals not only fueled the prescription drug problem in Northern Ohio, but they supported addiction in several parts of the country. As a result of this joint investigative effort, not only are numerous criminals in prison for their crimes, but the government has seized a significant portion of the illegal proceeds through asset forfeiture.”
Pharmacist Vinesh Darji was sentenced last year to nearly five years in prison for his conviction on conspiracy to distribute controlled substances.
Audrey Barbara Rovedo was sentenced last year to more than six years in prison for convictions on conspiracy to distribute controlled substances and conspiracy to launder money.
Rovedo, a manager at Delta Health, is 65 and lived in Jacksonville, Fla. Sasaki, 42, lives in Jersey City, N.J. and Darji, 43, lived in Tampa, Fla., according to public records.
James Hazelwood in 2012 was sentenced to more than eight years in prison and ordered to pay $3.8 million in restitution.
Hazelwood, 44, of Cumming, Ga., previously pleaded guilty to engaging in a continuing criminal enterprise for his role in operating a company that illegally distributed millions of pills of prescription painkillers, including hydrocodone and alprazolam, to drug addicts and recreational drug users who had no medical reason for receiving the pills.
Hazelwood operated USMeds, LLC and later, American Health Alternatives. Hazelwood, through both companies, worked with pharmacists and pharmacies who supplied drugs to the organization, which Hazelwood then distributed to people who contacted him through the companies’ web sites or call centers, according to court documents.
Hazelwood controlled most aspects of the drug trafficking organization. He set up and maintained web sites, including usmedsovernight.com, verybestmeds.com and mydoctorconsultonline.com, to solicit customers to buy hydrocodone and other pills without valid prescriptions, according to court documents.
The transactions were nothing more than illegal customer-dictated drug orders that bore the electronic or handwritten signature and DEA registration number of a doctor. Customer, not doctors, selected the type of controlled substance, quantity and strength to be “prescribed.” Customers paid for their “consultation” and pills up front, via credit card, and medical insurance was not accepted. Doctors signing the drug orders did not physically examine customers or even meet them face-to-face. Instead, after selecting the drug he or she wanted, the customer filled out a brief online questionnaire, the customer had a short “telephone consultation” and the prescription was issued. The conspiring pharmacies then shipped the drugs via FedEx to thousands of customers across the country, according to court records.
In addition to soliciting customers via its web site, Hazelwood’s organization also advertised on billboards in bathroom stalls at bars and nightclubs, at a music festival in Miami and internet banner ads, among other means, according to court documents.
Because of the makeup of his customer base, the Hazelwood drug trafficking organization charged its customers a price that was multiple times higher than the retail cost of the drugs it provided. The group generally charged $300 for 90 tablets of hydrocodone, plus a $55 “consult” fee, according to court documents.
The activity took place between 2005 and 2009, according to court documents.
This case was prosecuted by Assistant United States Attorneys Rebecca Lutzko and Edward Feran following an investigation by the Drug Enforcement Administration, the Internal Revenue Service and the Medina County Drug Enforcement Task Force.
The cooperation of the U.S. Attorney’s offices in Jacksonville, Florida; Tampa, Florida, Atlanta; Puerto Rico, New Orleans and New York City was instrumental in the arrests, searches and initial court appearances in this case.
New Haven Man Sentenced to 66 Months in Federal Prison for Drug Offense, Violating Supervised ReleaseRead the Press Release
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Deirdre M. Daly, the United States Attorney for the District of Connecticut, announced that MARVIN OGMAN, 37, of New Haven was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 30 months of imprisonment for violating the terms and conditions of his supervised release from a previous federal conviction. Earlier this month, OGMAN was sentenced to 36 months of imprisonment for using a telephone to facilitate a drug trafficking offense. The sentences will run consecutively.
In December 2005, MARVIN OGMAN was sentenced in federal court to 95 months of imprisonment, followed by six years of supervised release, for his role in a narcotics distribution conspiracy. He was released from federal prison in May 2011.
On April 9, 2012, a grand jury returned an indictment charging MARVIN OGMAN and 17 other individuals with narcotics distribution and related offenses stemming from an investigation conducted by the FBI New Haven Safe Streets Task Force, the New Haven Police Department and the Connecticut State Police into drug distribution and related violence allegedly being committed by members and associates of the Grape Street Crips in New Haven. Two additional individuals were later charged in the case. During the investigation, MARVIN OGMAN was identified over a court-authorized wiretap arranging crack cocaine transactions with his nephew, Donald Ogman, who has been identified in court proceedings as the alleged leader of the Grape Street Crips.
On December 22, 2012, MARVIN OGMAN pleaded guilty to one count of using a telephone to facilitate a drug trafficking offense. On April 11, 2014, in Bridgeport, Senior U.S. District Judge Warren W. Eginton sentenced MARVIN OGMAN to 36 months of imprisonment.
Today, Chief Judge Hall ordered MARVIN OGMAN to serve a four-year term of supervised release after serving an effective sentence of 66 months of imprisonment.
Donald Ogman has pleaded guilty and awaits sentencing.
This matter was investigated by the FBI’s New Haven Safe Streets Task Force, the New Haven, Hamden and Milford Police Departments, the Connecticut State Police and the State of Connecticut Department of Correction. The investigation has been assisted by the U.S. Marshals Service and the Westerly (R.I.) Police Department.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and H. Gordon Hall.
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(203) 821-3722 [email protected]Mountain City Residents Sentenced for Conspiring to Manufacture MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – Two individuals involved in a methamphetamine conspiracy were sentenced on Apr. 23, 2014, by the Honorable J. Ronnie Greer, U.S. District Judge. Stacy T. Snyder, 44, of Mountain City, Tenn., was sentenced to serve 108 months in federal prison, to be followed by four years of supervised release. Billy E. Hartness, 35, of Mountain City, Tenn., was sentenced to serve 211 months in federal prison, to be followed by four years of supervised release. There is no parole in the federal system.
These individuals, along with 18 others, were indicted in May 2013 for conspiring to manufacture methamphetamine and possessing equipment, chemicals, materials, and products to be used in the manufacture of methamphetamine. All have been adjudicated guilty and have either been sentenced or will be sentenced later this year. The charges stem from a lengthy investigation spanning from August 2006 to May 2013 involving a conspiracy to obtain pseudoephedrine and other products needed to manufacture methamphetamine from various sources in the Eastern District of Tennessee, Western District of North Carolina, and Western District of Virginia. The pseudoephedrine and other products were then used to manufacture methamphetamine utilizing the “shake and bake” method. The methamphetamine was used and distributed in the Eastern District of Tennessee.
This investigation was a result of the collaborative efforts of the Johnson County Sheriff’s Office, First Judicial District Drug Task Force, Tennessee Methamphetamine and Pharmaceutical Task Force, and the DEA. Assistant U.S. Attorneys Suzanne Kerney-Quillen and Caryn Hebets represent the United States.
Mexican National Sentenced to Nine Years in Federal Prison for Trafficking Methamphetamine in San Juan CountyRead the Press Release
ALBUQUERQUE – Pricilo Garcia-Jimenez, 41, a Mexican national from Oaxaca, Mexico, was sentenced this afternoon to 108 months in federal prison for his methamphetamine trafficking conviction. Garcia-Jimenez will be deported after he completes his prison sentence. The sentence was announced by Acting U.S. Attorney Damon P. Martinez, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas, and Lt. Neil Haws, Director of the HIDTA Region II Narcotics Task Force.
Garcia-Jimenez, an undocumented alien illegally present in the United States, was arrested on May 22, 2012, on a criminal complaint alleging methamphetamine trafficking charges. In July 2012, a five-count indictment was filed charging Garcia-Jimenez with distributing methamphetamine in San Juan County, N.M., on five separate occasions between Nov. 2011 and April 2012.
On Aug. 29, 2013, Garcia-Jimenez pled guilty to five methamphetamine distribution charges. In his plea agreement, Garcia-Jimenez admitted distributing methamphetamine to an undercover officer on five separate occasions between Nov. 2011 and April 2012. Specifically, Garcia Jimenez admitted distributing 69.4 grams of methamphetamine to the undercover agent on Nov. 30, 2011. Garcia-Jimenez also admitted distributing more than five grams of methamphetamine to the undercover agent on Feb. 23, 2012, March 28, 2012, April 5, 2012 and April 29, 2012. He further admitted distributing methamphetamine to others on Sept. 29, 2011, Oct. 19, 2011, Nov. 2, 2011 and Nov. 17, 2011.
This case was investigated by the Albuquerque office of HSI and the HIDTA Region II Narcotics Task Force and was prosecuted by Assistant U.S. Attorney Nicholas J. Ganjei.
The Region II HIDTA Narcotics Task Force is comprised of officers from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department. It is part of the High Intensity Drug Trafficking Areas (HIDTA) program which was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Member of Cherry Hill Group ‘Little Spelman’ Pleads Guilty to Racketeering Conspiracy, Including Drug Dealing and Two MurdersRead the Press Release
Shootings and Murders Attributed to Rival Drug Gangs
Baltimore, Maryland – Davon Martin, age 25, of Baltimore, Maryland pleaded guilty yesterday to conspiracy to participate in a racketeering enterprise, related to his drug dealing and violence in the Cherry Hill section of Baltimore.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.“Many of the shootings and murders in Baltimore City result from disputes between rival drug gangs,” said U.S. Attorney Rod J. Rosenstein. “Thanks to a lengthy and intensive investigation, we will hold accountable the criminals who turned Cherry Hill into a war zone.”
According to his plea agreement, from at least 2003 to 2013, Davon MARTIN was a member of a group known as “Little Spelman” in the “down the hill” area of Cherry Hill. This group committed acts of robbery, homicides, non-fatal shootings and drug distribution, to include crack cocaine, heroin, cocaine and marijuana. From 2009 to 2011, Martin, along with another member of Little Spelman, operated a crack cocaine distribution “shop” out of an apartment located on Round Road. Martin and others sold at least two kilograms of crack cocaine from the apartment on Round Road. On at least one occasion, while in possession of a firearm, Martin robbed an individual who had sold him some bad cocaine. Martin admitted he has also committed other robberies related to his drug distribution.Martin admitted that on January 20, 2011, he shot and killed Rhidell Price, a member of a rival group operating in Cherry Hill known as “Up Da Hill,” in the rear of 2900 Denham Circle. After receiving a call that Price was in the area, Martin and an associate drove down to Denham Circle where Rhidell Price was getting out of a vehicle parked on the street. Martin got out of his vehicle and began shooting at Price, chasing after Price and ultimately killing him. Martin killed Price in retaliation for Martin and another Little Spelman member being shot at by Up Da Hill members a few days earlier.
Two days after Martin killed Price, on January 22, 2011, Little Spelman associate Harry Hicks was shot and killed by Up Da Hill members in retaliation for Price’s murder. On April 9, 2011, Martin shot and killed Up Da Hill member Dwight Taylor at a barbershop on W. Saratoga Street in Baltimore, in retaliation for Hicks’ murder. During the murder, Martin was wearing a black jacket and a black mask which he discarded in a nearby dumpster on Clay Street. Both the mask and jacket were recovered by police from the dumpster. The DNA recovered from both the face mask and the jacket matched Martin’s DNA. A ballistics comparison of the .45 caliber firearm that Martin used to kill Taylor revealed that it was the same gun used on January 28, 2011 by Dominic Hope, another Little Spelman associate, and the former leader of Little Spelman, to shoot Up Da Hill member Antione White, who was leaving the funeral of Rhidell Price. Dominic Hope was subsequently shot and killed on January 20, 2012.
Martin and the government have agreed that if the Court accepts the plea agreement he will be sentenced to between 30 and 35 years in prison. U.S. District Judge George L. Russell, III has scheduled sentencing for July 18, 2014 at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith and Brooke Carey, who are prosecuting the case.
Melbourne Man Sentenced to 50 Years in Federal Prison on Child Pornography ChargesRead the Press Release
Orlando, Florida – Chief U.S. District Judge Anne C. Conway today sentenced Alan Gregory Ender (58, Melbourne) to 50 years in federal prison for production and possession of child pornography. He was also ordered to serve a life term of supervised release and ordered to comply with Sex Offender Registration and Notification. He pleaded guilty to the charges on November 14, 2013.
According to court documents, this investigation began when an Internet website reported to the National Center for Missing and Exploited Children (NCMEC) that a specific Internet Protocol (IP) address was engaged in downloading child pornography. Law enforcement determined the location of the IP address and interviewed Ender. Ender admitted to downloading and possessing child pornography for a period of two to three years. He also admitted to producing child pornography. In order to produce the child pornography, Ender lured two six-year old neighborhood girls to his home with candy. He then took explicit photographs of the girls on his bed.
Following the execution of a search warrant, Ender’s computers and cameras were seized and searched. A forensic examination of the computer revealed 151 image files and 1 movie file depicting pornographic images of the two young girls, which Ender produced using his cameras. The forensic examination further revealed an additional 477 movie files and 102 image files of child pornography.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Florida Department of Law Enforcement, Orlando Regional Operations Center. It was prosecuted by Special Assistant United States Attorney Myrna Amelia Mesa.
This is another case 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.
Maryland Man Sentenced for<br /> Defrauding Thousands of Homeowners in $4 Million<br /> Nationwide Home Loan Modification ScamRead the Press Release
A Maryland man was sentenced today to serve one year and a day in prison for defrauding thousands of homeowners in a $4 million nationwide home loan modification scheme.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Carmen M. Ortiz of the District of Massachusetts and Special Inspector General for the Troubled Asset Relief Program (SIGTARP) Christy Romero made the announcement.
Brian Kelly, 37, of Forest Hill, was sentenced by U.S. District Court Judge Rya W. Zobel of the District of Massachusetts and ordered to serve three years of supervised release following his prison term. Restitution will be determined at a later date.
Kelly pleaded guilty on May 2, 2013, to one count of conspiracy, nine counts of mail fraud and nine counts of wire fraud.
According to court records, Kelly and others, operating under the name Home Owners Protection Economics Inc. (HOPE), made a series of misrepresentations to induce struggling homeowners to pay HOPE $400 to $2,000 in up-front fees in exchange for HOPE’s help obtaining federally funded home loan modifications. Kelly was one of HOPE’s more successful salespeople, receiving approximately $24,000 after arranging fraudulent home loan modifications totaling approximately $180,000.
Also according to court documents, the conspirators misrepresented that, with HOPE’s assistance, the homeowner was guaranteed to receive a loan modification under the Home Affordable Modification Program (HAMP), which is part of the Troubled Asset Relief Program (TARP) and is a federally funded mortgage-assistance program. For example, the defendants routinely claimed that the homeowner had already been approved for a loan modification, provided phony “approval codes,” quoted new (and wholly fictitious) mortgage terms and due dates, touted their 98 percent past success rate and claimed that they were “underwriters” or were otherwise affiliated with the homeowners’ mortgage companies. HOPE also claimed that it would offer homeowners refunds in the unlikely event that they did not receive a loan modification.
According to court documents, in exchange for the up-front fees, HOPE sent its customers, including homeowners in Massachusetts, a do-it-yourself application package, which was virtually identical to the application that the government provides free of charge. The HOPE customers had no advantage in the application process, and, in fact, most of their applications were denied. Through these misrepresentations, HOPE was able to persuade thousands of homeowners to pay more than $4 million in fees.
Two co-defendants, Christopher S. Godfrey, 44, of Delray Beach, Fla., and Dennis Fischer, 42, of Highland Beach, Fla., were convicted after trial and were each sentenced on Feb. 20, 2014, to serve 84 months in prison. A third co-defendant, Vernell Burris, Jr., 54, of Coconut Creek, Fla, pleaded guilty and was sentenced on Feb. 25, 2014, to serve a year and a day in prison.
The case was investigated by SIGTARP and is being prosecuted by Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Adam Bookbinder in the District of Massachusetts’s Computer Crimes Unit.Maryland Man Sentenced to More Than 10 Years in Prison for Federal Narcotics Conspiracy Charge-Defendant Also Must Forfeit Two Vehicles and over $20,000-Read the Press Release
WASHINGTON - Ralph Terry, 42, of Germantown, Md., was sentenced today to 10 years and 10 months in prison for his role in a conspiracy to distribute cocaine and crack cocaine in the Washington, D.C. area, announced U.S. Attorney Ronald C. Machen Jr.
Terry pled guilty in February 2014, in the U.S. District Court for the District of Columbia, to a charge of conspiracy to distribute and possess with intent to distribute cocaine and cocaine base, also known as crack. The plea, which called for a sentence of 100 to 151 months of incarceration, was approved by the Honorable Ketanji Brown Jackson. Upon completion of his prison term, Terry will be placed on three years of supervised release.
According to the evidence presented at the plea hearing, during the fall of 2012, Terry conspired with others to distribute and possess with intent to distribute in the District of Columbia and its surrounding areas, cocaine and cocaine base, also known as crack.
This investigation arose on the evening of Nov. 29, 2012, in Northeast Washington. At that time, officers with the Metropolitan Police Department (MPD) conducted a search at Second and Adams Streets NE of the GMC Yukon driven and owned by Terry. During the course of that search, officers recovered, among other items, over 40 grams of crack cocaine and $17,391. The recovered money was proceeds of Terry’s narcotics trafficking activities.
On Dec. 11, 2012, with the assistance of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, a search warrant was executed at Terry’s residence in Maryland. Law enforcement recovered, among other items, $2,830 in cash and the key to an Oldsmobile Cutlass, located at the residence. A search warrant was subsequently executed on the Oldsmobile, and inside that vehicle, law enforcement recovered over 170 grams of crack cocaine, over 245 grams of powder cocaine, and digital scales. The money was proceeds of the narcotics activities.
As part of his plea agreement, Terry agreed to the forfeiture of the GMC Yukon, the Oldsmobile, the $17,391 recovered on Nov. 29, 2012, and the $2,830 seized on Dec. 11, 2012.
In announcing the sentence, U.S. Attorney Machen praised the efforts of the members of the Metropolitan Police Department and the actions of the Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, who investigated this case. U.S. Attorney Machen also commended the efforts of Assistant U.S. Attorney Opher Shweiki, who prosecuted the case, and Assistant U.S. Attorney Catherine K. Connelly, who assisted with forfeiture aspects of the investigation.
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