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18 April 2014
Gardiner Man Pleads Guilty to Pharmacy RobberyRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Ryan
McLaughlin, 26, of Gardiner, pled guilty yesterday in U.S. District Court in Bangor to pharmacy robbery.According to court records, on November 13, 2013, McLaughlin entered the Shaw’s
Osco pharmacy in Augusta and handed a note to a pharmacy employee demanding two bottles of
Oxycodone. He was agitated as he spoke with the pharmacy staff, stating that he was in a hurry and demanding that they move faster. He also kept one of his hands in his pocket during the incident, as if he were concealing something. Pharmacy personnel provided him with two bottles of Oxycodone and he left the store. In an interview after his arrest, McLaughlin admitted robbing the store, and said he had committed the robbery to obtain pills to feed his severe addiction.McLaughlin faces up to 20 years in prison, a fine of up to $250,000, or both. He will be sentenced after completion of a presentence report by the United States Probation Office.
The investigation was conducted by the Augusta Police Department and the Federal
Bureau of Investigation.Fort Thompson Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on April 14, 2014, by U.S. District Judge Roberto A. Lange.
Raynard Bad Moccasin, age 43, was sentenced to 18 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Bad Moccasin was indicted by a federal grand jury on September 17, 2013. He pled guilty on January 22, 2014.
The conviction stems from Bad Moccasin failing to register as a sex offender between May 1, 2013, and September 17, 2013, as he was required to do under federal law. Bad Moccasin was previously convicted of a sex offense in federal court, which requires him to register as a sex offender for the rest of his life.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Bad Moccasin was immediately turned over to the custody of the U.S. Marshals Service.
Former Vancouver, Washington Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
A former Vancouver, Washington man pleaded guilty today in U.S. District Court in Tacoma to distribution of child pornography, announced U.S. Attorney Jenny A. Durkan. JOSEPH SCHESSO, 36, now of Portland, Oregon, was indicted in May 2011. Under the terms of the plea agreement, he must be sentenced to twelve years in federal prison, or the plea agreement can be voided and the case could continue to trial. Sentencing is scheduled before U.S. District Judge Robert J. Bryan on July 11, 2014.
According to records filed in the case, SCHESSO first came to the attention of authorities when investigators in Germany discovered an individual in the U.S. distributing child pornography through a file-sharing program. The information was passed from German law enforcement to investigators with U.S. Immigration and Customs Enforcement (ICE), who traced the computer’s internet protocol address to SCHESSO’s residence. In June 2010, agents executed a search warrant on SCHESSO’s Vancouver home. Investigators found more than 3,100 images and 500 movie files of child pornography on SCHESSO’s computers. They also located a media card for a digital camera. Forensic examination of the media card revealed photos of a young child in sexually explicit poses. Agents identified furniture and blankets in the photos as items in SCHESSO’s home, and identified the child as one who had visited SCHESSO’s home.
SCHESSO is required to register as a sex offender following his release from prison. SCHESSO has served almost three years of a 40-month sentence in state court for attempted child molestation. The 12-year federal prison term begins with the sentencing hearing in July and will run concurrent to the remaining state prison sentence.
The case was investigated by ICE’s Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Marci Ellsworth.
Former Bend Resident Sentenced for $311,000 Fruadulent Refund Scheme and for Filing Retaliatory Liens Against IRS EmployeesRead the Press Release
EUGENE, Ore. – On Wednesday, April 16, 2014, U.S. District Judge Ann Aiken sentenced Mark Timothy Ellis, 38, of Oregon City, Oregon, for making a fraudulent claim to the United States and for filing a false lien against a federal employee to serve 12 months and one day in prison and three years of supervised release, and ordered him to pay $311,459 in restitution.
According to court documents, Ellis admitted that he made a false claim to the United States when he filed a series of fraudulent documents with the Internal Revenue Service (IRS), including false 1099s and false tax returns, and obtained a fraudulent $311,459 refund based on those false documents. Ellis also admitted that he filed a false and retaliatory lawsuit and false and retaliatory liens against the IRS employees who were investigating his illegal conduct, including the special agent who was investigating him for tax fraud, as a means of retaliation and intimidation.
This case was investigated by IRS Criminal Investigations and the U.S. Treasury Inspector General for Tax Administration and was prosecuted by Assistant U.S. Attorney Scott E. Bradford.
Fayetteville Man Sentenced for Hobbs Act Robbery & CarjackingRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Terrence W. Boyle sentenced GREGORY JAMES BURGESS , 28, of Fayetteville to 168 months imprisonment, followed by 3 years of supervised release.
BURGESS was named in an Indictment filed on April 13, 2013, charging him with six counts. The Indictment charged Hobbs Act Robbery, brandishing a firearm during and in relation to a crime of violence, carjacking, using and carrying firearms during and in relation to a crime of violence, felon in possession of firearms, and possession of a stolen firearm. On June 5, 2013, BURGESS pled guilty to the Hobbs Act Robbery, carjacking, and using and carrying firearms during and in relation to a crime of violence charges.
According to the investigation, BURGESS and his co-conspirator, entered the Little Vegas Sweepstakes, an internet gaming business located in Fayetteville, which is now closed. BURGESS and his co-conspirator forced two victims at gunpoint from one room into another. BURGESS punched one victim in the face. BURGESS pilfered though the office of Little Vegas Sweepstakes and the cash register. He took $1,000 from the cash register, along with an employee’s wallet and $90 lying on the office desk. BURGESS struck a customer in the back of the head with a firearm after the victim stated he didn’t know where the keys to his vehicle were located. BURGESS pulled a video camera from the office ceiling and attempted to locate the surveillance tape. BURGESS and his co-conspirator fled the scene in a truck that they stole from one of the victims inside the store.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Ivestigation of this case was conducted by the Fayetteville Police Department, the Hope Mills Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.
Eagle Butte Man Sentenced for Voluntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Voluntary Manslaughter was sentenced on April 14, 2014, by U.S. District Judge Roberto A. Lange.
Jared Slader, age 30, was sentenced to 51 months in custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Slader was indicted for Second Degree Murder by a federal grand jury on September 10, 2013. He pled guilty to Voluntary Manslaughter on January 1, 2014.
The conviction arose from an incident that occurred on August 31, 2013, when Slader and the victim got into a physical altercation in Eagle Butte. At some point during the fight, Slader retrieved a knife and was stabbing and swinging the knife up and toward the victim’s body. Slader and the victim were pulled apart, but then resumed fighting. The victim was taken to the local hospital, and then transported to Rapid City Regional Hospital, where he died due to multiple sharp force-type injuries, including stab wounds to the abdomen and shoulder, and multiple incised wounds.
This case was investigated by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Jay Miller prosecuted the case.
Slader was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
Eagle Butte Man Sentenced for Assault with A Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury was sentenced on April 14, 2014, by U.S. District Judge Roberto A. Lange.
Francis Thompson, a/k/a Sonny Thompson, age 26, was sentenced to 48 months in custody, 2 years of supervised release, $163.20 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Thompson was indicted by a federal grand jury on two separate cases. In the first case he was for indicted for Assault Resulting in Serious Bodily Injury, and the second case for Assault with a Dangerous Weapon. On January 22, 2014, Thompson pled guilty to both charges.
The first case occurred in September 2013 when Thompson became angry at the victim and without just cause or excuse, swung and punched the victim with his fist on the left side of the victim’s face. As a result of the unlawful assault, the victim required surgery to repair some of the facial fractures.
In the second case, Thompson got into an altercation with the victim. He chased the victim out of an apartment and when Thompson caught up to the victim, he hit him in the back of the head with a small child’s wooden chair, causing the victim to fall to the ground. Thompson then struck the victim several more times with the chair while the victim was on the ground.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Thompson was immediately turned over to the custody of the U.S. Marshals Service.
Durant Medical Center of Southeastern Oklahoma to Pay $1.5 Million to Resolve False Claims Act LawsuitRead the Press Release
Muskogee, Oklahoma - The Medical Center of Southeastern Oklahoma, located in Durant, Oklahoma, and its parent, Health Management Associates, Inc., have agreed to pay $1,065,000 to the United States and $435,000.00 to the State of Oklahoma to resolve allegations that the hospital billed SoonerCare, the Oklahoma Medicaid Program, for surgical procedures performed by Dr. Daniel Castro, and related hospital services, that were not medically necessary, the United States Attorney’s Office for the Eastern District of Oklahoma announced today. The settlement also resolves claims that the hospital billed for services related to surgical procedures that Castro did not perform. In January of this year, HMA was acquired by Community Health Systems, a nationwide acute care hospital chain. MCSO is an acute care hospital in Durant, Oklahoma, and Dr. Castro is an otolaryngologist who practiced at MCSO from 2005 to 2010.
Mark Green, United States Attorney for the Eastern District of Oklahoma, stated: “Health Care Fraud is a tremendous problem in Eastern Oklahoma as well as across the nation. Fraud, such as billing for services that aren’t necessary, costs the taxpayers of Oklahoma thousands of dollars. The False Claims Act is a valuable weapon in the government’s arsenal to combat these types of abuses.”
The settlement announced today resolves allegations that MCSO submitted claims to SoonerCare for surgical procedures performed by Dr. Castro, and related hospital services that were not medically necessary. The surgical procedures in question were functional endoscopic sinus surgeries (FESS) performed by Dr. Castro on children who were SoonerCare beneficiaries. According to the United States, Dr. Castro performed FESS’s on children that were not medically indicated, and Dr. Castro and the hospital billed SoonerCare for the unnecessary surgeries and related hospital services. The settlement also resolves claims that MCSO billed SoonerCare for hospital services related to FESS’s that Dr. Castro did not actually perform.
The allegations that the government has settled with MCSO and HMA were raised in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The whistleblower, Sandra Simmons, will receive $159,750 as part of today’s settlement.
This civil settlement and the government’s intervention illustrate the government’s emphasis on combating health care fraud and mark another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $19 billion through False Claims Act cases, with more than $13.6 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was a coordinated effort among the United States Attorney’s Office for the Eastern District of Oklahoma, the Civil Division of the United States Department of Justice, the Office of the Inspector General of the Department of Health and Human Services and the Office of the Oklahoma Attorney General. The lawsuit is captioned United States ex rel. Sandra Simmons v. Health Management Associates, Inc., Durant H.M.A., LLC d/b/a Medical Center of Southeastern Oklahoma, Durant HMA Physician Management, LLC and Dan J. Castro, M.D., Case No. CIV-12-043-JHP (E.D. Okla.).
Assistant United States Attorneys Susan S. Brandon and Robert Gay Guthrie are assigned to the case.
The claims settled or pursued by the government are allegations only; there has been no determination of liability.
Drug Violations Draw Prison Term for Billings WomanRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula on April 16, 2014, before U.S. District Judge Donald W. Molloy, MARY ROSE DAY, 31, of Billings, was sentenced to a term of 60 months' imprisonment and 5 years supervised release.
Day was sentenced in connection with her January 2014, guilty plea to possession with intent to distribute methamphetamine. In an Offer of Proof filed by Assistant U.S. Attorney Lori Suek, the government stated that in 2009, Day was convicted of distribution of dangerous drugs in Hill County. Day was on state supervision when she came to the attention of the Billings drug task force through the state probation and parole office during the spring of 2012.
On April 4, 2012, the drug task force was contacted by State probation and parole for assistance. Probation and parole were looking for a parolee, because they had a warrant for her arrest. At the house, officers found Day as well as others. In the house were multiple items of drug distribution and drug use - mirrors with residue, new small baggies, a digital scale, and syringes. Parole officers looked at Day's cell phone and read text messages that referenced illegal drug activity.
Again, on April 23, 2012, state probation and parole found Day in possession of drugs and paraphernalia. Day was arrested on new state drug charges and probation violations. She bonded out at some point before May 11, 2012.
On May 11, 2012, Deputy U.S. Marshals were assisting State probation and parole conduct a parole search of Day. Day was located at an apartment in Billings. The deputies were concerned that Day would try to escape out of a window of the apartment and, consequently, they positioned themselves around the apartment in the event that Day did attempt an escape. After the probation officers knocked on the door of the apartment and identified themselves, one of the deputies saw a female hand throw something out of the bathroom window into the window well. Day was the only female in the house. The plastic bag that Day threw out the window contained over 8 grams of actual methamphetamine (88% pure). Day also threw three pipes and a torch head out of the window with the methamphetamine. Also recovered were a scale, cash, and cell phones containing text messages referencing illegal drug activity.
The term pure methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
District Man Sentenced to More Than 13 Years in Prison for Killing One Man and Wounding Another in 2012 Confrontation-Defendant Stabbed Victims During Fight in Southeast Washington-Read the Press Release
WASHINGTON – Donzell Butler, 23, of Washington, D.C., was sentenced today to 13 years and four months in prison on charges stemming from an attack in which he fatally stabbed one man and wounded another, U.S. Attorney Ronald C. Machen Jr. announced.
Butler pled guilty in January 2014, in the Superior Court of the District of Columbia, to charges of voluntary manslaughter and felony assault. He was sentenced by the Honorable John Ramsey Johnson. Upon completion of his prison term, Butler will be placed on five years of supervised release.
According to the government’s evidence, on the evening of July 7, 2012, the trouble began with a brief exchange of words between Butler and 20-year-old Charles Scott outside a carry-out restaurant at the corner of East Capitol and 53rd Streets SE. Mr. Scott and a friend, who had gone to the carry-out that night, then walked away, heading north on 53rd Street and turning onto Ames Street SE. Butler was walking in the same direction.
Once on Ames Street, Butler exchanged words with Mr. Scott’s friend, and a physical confrontation then ensued. Mr. Scott attempted to assist his friend in the fight, and another person came to assist Butler in the confrontation. As events continued, Mr. Scott fought Butler with his fists. At some point, Butler escalated the level of violence, stabbing Mr. Scott in the neck and shoulder and stabbing Mr. Scott’s friend in the upper body.
Mr. Scott fell to the ground, and Mr. Butler fled. Mr. Scott and his friend were transported to a local hospital, where Mr. Scott died from his injuries.
In announcing the sentence, U.S. Attorney Machen praised the work of those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Kendra Johnson and Sandra Lane and Victim/Witness Advocate Tamara Ince. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Michelle Bradford, who investigated the case, and Reagan M. Taylor, who prosecuted the matter.
14-091District Man Sentenced to 23-Month Prison Term for Accosting 10-Year-Old and 12-Year-Old GirlsSeparate Incidents Took Place in 2012Read the Press Release
WASHINGTON – David Gantt, 29, of Washington, D.C., was sentenced today to 23 months in prison on charges stemming from his sexual abuse of two girls in separate incidents during the summer of 2012, U.S. Attorney Ronald C. Machen Jr. announced.
Gantt pled guilty in January 2014, in the Superior Court of the District of Columbia, to one count of attempted second-degree child sexual abuse and one count of misdemeanor sexual abuse. He was sentenced by the Honorable Robert E. Morin. Upon completion of his prison term, Gantt will be placed on three years of supervised release. He will also be required to register as a sex offender for the rest of his life.
According to the government’s evidence, in July 2012, Gantt molested a 12-year-old girl in the laundry room of an apartment building in Southeast Washington. Approximately one month later, Gantt inappropriately touched a 10-year-old girl who was visiting a friend who lived in Gantt’s apartment.
In announcing the sentence, U.S. Attorney Machen praised the work of the Metropolitan Police Department’s Youth Division, which investigated the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Jason Manuel and Victim/Witness Advocate Veronica Vaughan. Finally, he commended Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted the case.
14-089District Man Sentenced to 17 Years in Prison for Shooting Store Manager During Attempted Robbery-Victim, Shot in the Back, Remains Partially Paralyzed-Read the Press Release
WASHINGTON – Ricky Vinston, 55, of Washington, D.C., was sentenced today to 17 years in prison for shooting a store manager in the back during an attempted robbery of a drugstore in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Vinston pled guilty in October 2013, in the Superior Court of the District of Columbia, to aggravated assault while armed and assault with intent to rob while armed against two separate victims. The plea agreement, which called for a sentence of 13 to 17 years in prison, was contingent upon the approval of the Honorable Patricia A. Broderick. Upon completion of his prison term, Vinston will be placed on five years of supervised release.
According to the government’s evidence, on April 13, 2012, at approximately 12:25 p.m., Vinston entered a Rite Aid store in the 1400 block of Rhode Island Avenue NE. He approached a clerk and asked about the price of a pack of candy. While the clerk worked to verify the price, Vinston brandished a handgun and demanded the money from the store’s cash register. The clerk fled, and Vinston began attempting to open the cash register himself.
At this point, the store’s manager walked towards the defendant to try and prevent any violence. Vinston told the manager he had two minutes to open the cash register. When the manager struggled to get it open, Vinston counted to three, cocked his firearm, and fired once at close range. The manager, hit in the back, fell to the floor. He was later rushed to the hospital, where he received emergency surgery to repair the damage to his spine caused by the bullet. Since the shooting, the manager remains partially paralyzed from the waist down and must use a wheelchair.
Vinston was arrested a week after the attack.
In announcing the sentence, U.S. Attorney Machen recognized the efforts of the detectives and officers from the Metropolitan Police Department, whose investigation revealed the defendant’s identity as the shooter. He also acknowledged the efforts of Paralegal Specialist Kalisha Clark. Finally, he commended the work of Assistant U.S. Attorneys Jim Smith and Nicholas Cannon, who investigated and secured the indictment in the case, and James Ewing, who handled post-plea litigation and sentencing.
14-088District Man Found Guilty of First-Degree Murder While Armed and Other Charges in 2012 Murder of Unarmed TeenagerDefendant and Two Accomplices Fired at Least 28 Shots at Group of Unarmed Young MenRead the Press Release
WASHINGTON –Calvin Shaw, 24, of Washington, D.C., has been found guilty by a jury of first-degree murder while armed and other charges for the July 4, 2012 shooting of a group of unarmed teenagers and young men, U.S. Attorney Ronald C. Machen Jr. announced today. Shaw also was convicted of charges stemming from a second shooting earlier that year.
Shaw, also known as Sharkim Sharp, was found guilty by the jury on April 17, 2014, following a trial in the Superior Court of the District of Columbia. He is to be sentenced on June 20, 2014 by the Honorable Jennifer Anderson. Shaw faces a mandatory minimum of 67 years of incarceration and a maximum sentence of 290 years in prison for the various offenses.
In addition to the murder charge, the jury found Shaw guilty of five counts of assault with intent to kill while armed, two counts of aggravated assault while armed, and related weapons offenses for the July 4, 2012 shooting, which took place in the 5000 block of First Street NW. He also was found guilty of two counts of assault with intent to kill while armed, one count of aggravated assault while armed, and related weapons offenses for an April 18, 2012 shooting that occurred in the same block.
According to the government’s evidence, the murder took place at about 7:55 p.m. on July 4, 2012, when Shaw and two accomplices walked into the 5000 block of First Street NW and opened fire on a group of unarmed teenagers and young men who were gathered to celebrate the Fourth of July holiday and enjoy a cookout. As the teenagers and young man ran for cover, a gunshot pierced the back of 19-year-old Crevontai Key, severing his aortic arch and killing him. A second 19-year-old victim suffered serious injuries when he was shot in the abdomen. A 15-year-old victim was injured when a bullet grazed the top of the head. A fourth young man was shot in the back, with the bullet exiting his neck. Several other young men were shot at as they ran away. In total, Shaw and his two accomplices fired 28 times at the group of young men.
The jury also found Shaw guilty of the April 18, 2012 shooting of a young man in the same block, and of attempting to shoot another young man who rushed to that victim’s aid.In announcing the verdicts, U.S. Attorney Machen praised the efforts of those who worked on the case from the Metropolitan Police Department (MPD) and the FBI. U.S. Attorney Machen also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Kelly Blakeney and Kwasi Fields; Victim/Witness Advocate Marcia Rinker; Witness Security Specialist Debra Cannon; and Litigation Technology Specialist Leif Hickling.
Finally, he commended the work of Assistant U.S. Attorneys Jennifer Kerkhoff and Michelle Parikh, who tried the case, as well as former Assistant U.S. Attorneys Bruce Hegyi and Heather Carlton, who investigated the case.
14-090Delray Beach Resident Sentenced in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Jeffrey Emil Groover, 53, of Delray Beach, was sentenced today before U.S. District Judge Robin Rosenbaum to 60 months in prison, followed by three years of supervised release. Groover was ordered to pay $350,373.86 in restitution. Groover previously pled guilty to the indictment, which charged him with making and presenting false claims to the Internal Revenue Service, in violation of Title 18, United States Code, Section 287.
According to court documents, prior to March 2012, victims’ personal identification information was used to electronically file fraudulent federal tax returns and obtain tax refunds via U.S. Treasury checks and refund anticipated loan checks, payable to the victims whose tax returns had been fraudulently filed. Groover’s part in this scheme was to deposit the fraudulent tax refund checks into two business accounts, Affordable Pest Protection and Useful Products, companies he owned and controlled. Groover attempted to use those proceeds for himself and to pay others involved in the scheme.
Court documents state that in March 2012, Groover opened a merchant account at Telecheck Services, Inc. in the name of Affordable Pest Protection. Several large U.S. Treasury checks were processed through the defendant's business account. Groover stated to Telecheck that he met with each of the named payees on the tax refund checks in person to convert their tax refund checks into pre-paid extermination and disinfection services. Groover further explained that he was trying to “mimic” automobile dealerships’ promotions by allowing clients to bring him their tax refund checks and apply the refund amounts to pre-paid pest control services. When TeleCheck requested that Groover provide documentation to support his claim that the refund checks were provided to Affordable Pest Protection by customers as payment for services rendered, Groover provided Telecheck copies of Affordable Pest Protection invoices billing the payees of the tax refund checks for services he never provided. None of the payees received the tax refund checks issued in their names. Nor did the payees endorse the checks or authorize Affordable Pest protection or Groover to claim the tax refund check.
In sentencing the defendant to a sentence significantly above the sentencing guideline range, the judge noted the defendant’s extensive criminal history, his recent arrest for a new identity theft crime while on bond awaiting sentencing, and the large number of victims who suffered, some for years, as a result of his repeated commission of identity theft crimes. The judge also noted that while serving a 46 month sentence for identity theft in 2004, the defendant provided testimony to the Senate Special Committee on Aging, in which he explained how easy it was to commit identity theft using the internet and how his 46 month sentence would cause him to never commit such crimes again. Since the 46 month sentence had not deterred Groover from committing new crimes, the judge imposed a 60 month sentence.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Adrienne Rabinowitz.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Debary Man Sentenced to More Than 7 Years in Federal Prison for Firearms and Drug OffensesRead the Press Release
Orlando, Florida – U.S. District Judge Charlene Edwards Honeywell sentenced Steven George Higbee (52, Debary) yesterday to 7 ½ years in federal prison for firearm and drug offenses, including possession of a firearm by a person subject to a domestic violence protection order, attempted possession with intent to distribute a controlled substance, and carrying a firearm in relation to a drug trafficking crime. Higbee pleaded guilty on January 24, 2014.
According to court documents, on September 6, 2013 and September 12, 2013, in a store parking lot in Seminole County, Higbee possessed and sold a total of four firearms to another individual. Higbee also told this individual that he was interested in trading firearms for cocaine. On October 1, 2013, Higbee met this same individual a third time and gave him four firearms, including an AR-15 rifle, in exchange for approximately four ounces of cocaine. Shortly after receiving the cocaine, Higbee was arrested and the cocaine and firearms were recovered. During an interview following his arrest, Higbee admitted to law enforcement that he intended to sell the cocaine to individuals in Pennsylvania and New York.
At the time of these offenses, there was a valid domestic violence protection order issued against Higbee. As such, he was not permitted to possess a firearm or ammunition under federal law.This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). It was prosecuted by Assistant United States Attorney Andrew C. Searle.
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 where law enforcement efforts are focused.
Career Offender Bank Robber Sentenced to More than 14 Years in Federal PrisonRead the Press Release
EUGENE, OR. – On April 17, 2014, Chief United States District Judge Ann Aiken sentenced career offender Leodis Robert Roach, 31, of Multnomah County, Oregon, to serve fourteen years and four months in federal prison for robbing the Eugene downtown branch of the Bank of America, and a ten-year concurrent sentence for possessing a loaded pistol while he was a passenger in a car outside of Spokane, Washington. Roach will serve his federal sentences concurrently with state prison sentences he is presently serving in Oregon for first degree robbery and being a felon in possession of a firearm.
In 2001, Roach shot a person in Portland, Oregon, over an illegal drug debt and was convicted of assault in the first degree. He was released from prison in 2009, and attended classes at Lane Community College in Eugene, Oregon.
In April 2010, Roach was convicted of attempting to elude Portland police, a felony. In May 2011, Roach was arrested by U.S. Marshals for illegally possessing a loaded .45 caliber pistol near Spokane, Washington. Roach was released from custody pending his trial on the federal firearm charge.
On June 21, 2011, while committing a robbery, Roach exchanged gunfire with a drug dealer in a commercial area of Portland, Oregon. On July 22, 2011, Roach robbed the Bank of America in Eugene and, with the aid of an accomplice, returned to Portland, Oregon. On August 19, 2011, Roach was arrested by Portland police for the June 21, 2011, robbery. On March 20, 2013, an Oregon state judge sentenced Roach to ten years in prison after a jury found him guilty of first degree robbery and being a felon in possession of a firearm.
On November 14, 2013, Roach appeared in federal court in Eugene and pled guilty to robbing the Bank of America in Eugene as a career criminal. Roach earlier pleaded guilty to illegally possessing the loaded pistol in Washington. Today, Judge Aiken imposed the 14 year sentence for the federal offenses, and ordered them to be served concurrently with Roach’s state sentences.
The federal cases were investigated by the Federal Bureau of Investigation, the Bureau of
Alcohol, Tobacco and Firearms, the Portland Police Department, the Eugene Police Department and the Washington State Patrol. They were prosecuted by Assistant U.S. Attorney Frank R. Papagni, Jr., and Assistant United States Attorney Aine Ahmed.
Canton Man Sentenced to Nearly Two Years in Prison for Laundering Gambling ProceedsRead the Press Release
A Canton man was sentenced to nearly two years in prison and ordered to forfeit $28,000 in cash as well as cell phones and computers after he previously pleaded guilty to conspiring to launder illegal gambling proceeds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Conrad (Smokey) Everett, Special Agent in Charge, United States Secret Service, Cleveland Field Office.
Christos Karasarides, 48, was sentenced to 22 months in prison. He was also fined $25,000, in addition to the forfeiture ordered by U.S. District Judge James Gwin.
Kararsides conducted a sports bookmaking business by accepting wagers on sporting events, including NFL football, NCAA football, NBA basketball and NCAA basketball games, paying out winnings, collecting losses and collecting a percentage or “vigorish” for each wager placed, according to court documents
Kararsides used off-shore internet gambling services to record and process bets paid by gamblers. He also accepted payments of gamblers’ losses in the name of his business to facilitate the collection and hid the nature of the source of the sports bookmaking activities, according to court documents.
He also pleaded guilty to possession of Oxycodone and was sentenced to one year in prison for that offense, to be served concurrently to the money laundering sentence.
This case was prosecuted by Assistant U.S. Attorneys Samuel Yannucci and Robert E. Bulford following an investigation by the U.S. Secret Service and the Secret Service Money Laundering Task Force, is a multi- agency group comprised of the U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigations, Ohio Department of Public Safety, Ohio Adult Parole Authority and the Cleveland Police Department.
Butte County Sex Offender Indicted on Child Pornography ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an eight-count indictment today charging Joshua Landon Klipp, 32, of Chico, with one count of production of child pornography, six counts of receipt of child pornography, and one count of commission of a felony offense involving a minor when required to register as a sex offender, United States Attorney Benjamin B. Wagner announced.
According to court documents, between May 13, 2013, and July 10, 2013, Klipp persuaded a minor to engage in sexually explicit conduct for the purpose of producing images of those acts and for the purpose of transmitting live visual depictions of that conduct. Klipp received these images from the minor, as well as other images through the Internet between March 20, 2013, and September 18, 2013.
According to the indictment, Klipp was required to register as a sex offender under California Penal Code Section 290 after being convicted of sex offenses involving a minor in 2009 in Butte County.
This case is the product of an investigation by the Federal Bureau of Investigation, the Chico Police Department, and the California Department of Corrections and Rehabilitation. Assistant United States Attorney Kyle Reardon is prosecuting the case.
If convicted of producing child pornography, Klipp faces a maximum statutory penalty of 25 to 50 years in prison and a $250,000 fine. If convicted of receiving child pornography, he faces a maximum statutory penalty of 15 to 40 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Billings Woman Sentenced to Prison for Drug ViolationsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula on April 16, 2014, before U.S. District Judge Donald W. Molloy, KIMBERLY ANN DAHL, 33, of Billings, was sentenced to a term of 66 months' imprisonment and 5 years supervised release.
Dahl was sentenced in connection with her January 2014, guilty plea to possession with intent to distribute methamphetamine. In an Offer of Proof filed by Assistant U.S. Attorney Lori Suek, the government stated that on August 20, 2013, agents with the Billings drug task force were contacted by Montana State probation and parole regarding the defendant. Probation officers were at the defendant's home when, during a probation search, they located 24 individually packaged bags of methamphetamine (660.7 grams of actual meth) under the defendant's bed in her bedroom. The defendant was arrested on a probation violation.
On August 21, 2013, agents with the Billings drug task force went to the jail to interview the defendant. She provided a statement about how she acquired the methamphetamine under
She identified and explained how she met the individual that arranged for the methamphetamine, found under her bed, to be driven from California to Billings for resale. The defendant stored the methamphetamine under her bed - she agreed to do so until it was sold. The defendant would provide an ounce of methamphetamine at a time to the seller. In addition, on a couple of occasions, the defendant found customers for the methamphetamine and arranged the sales.
The term pure methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
Another Defendant Sentenced in Identity Theft Tax Refund Fraud and Access Device Fraud SchemesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), announce that Andrew Ware, 27, of Lauderhill, was sentenced today to 70 months in prison, to be followed by three years of supervised release for his participation in a stolen identity tax refund scheme and an access device fraud scheme that resulted in the submission of over $137,000 in fraudulent tax refund claims and over $49,000 in unauthorized access device purchases. Ware previously pled guilty to one count each of conspiracy to commit wire fraud, wire fraud, conspiracy to commit access device fraud, and aggravated identity theft, in violation of Title 18, United States Code, Sections 1349, 1343, 1029(b)(2) and 1028A(a)(1), respectively.
Co-defendants Alex Dontfred, 29, David Tilus, 27, Sherika Rowe, 20, Fritznel Etienne, 24, and Latonya Ware, 27, all of Lauderhill, were previously sentenced. Dontfred was sentenced on March 18, 2014 to 46 months in prison, followed by three years of supervised release, and was ordered to pay forfeiture of $49,561.88 and restitution in the amount of $45,711.10. Tilus was sentenced on March 10, 2014 to 70 months in prison, followed by three years of supervised release, and was ordered to pay $188,322 in restitution. Rowe was sentenced on March 13, 2014 to 45 months in prison, followed by three years of supervised release, and was ordered to pay a money judgment of $136,538 and restitution in the amount of $136,535. Etienne was sentenced on March 14, 2014 to 34 months in prison, followed by two years of supervised release, and was ordered to pay a money judgment of $11,204 and restitution in the amount of $3,844.81. Latonya Ware was sentenced on March 10, 2014 to 34 months in prison, followed by three years of supervised release, and was ordered to pay a money judgment of $136,535 and restitution in the amount of $136,535.
Dontfred previously pled guilty to one count each of conspiracy to commit access device fraud and access device fraud, in violation of Title 18, United States Code, Sections 1029(b)(2) and 1029(a)(2), respectively. Tilus previously pled guilty to one count each of conspiracy to commit wire fraud, wire fraud, conspiracy to commit access device fraud, and aggravated identity theft, in violation of Title 18, United States Code, Sections 1349, 1343, 1029(b)(2) and 1028A(a)(1), respectively. Rowe previously pled guilty to one count each of conspiracy to commit wire fraud, wire fraud and aggravated identity theft, in violation of Title 18, United States Code, Section 1349, 1343 and 1028A(a)(1), respectively. Etienne previously pled guilty to one count each of access device fraud and aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A(a)(1), respectively. Latonya Ware previously pled guilty to one count each of conspiracy to commit wire fraud and aggravated identity theft, in violation of Title 18, United States Code, Section 1349 and 1028A(a)(1), respectively.
According to court documents, Andrew Ware, David Tilus, Latonya Ware and Sherika Rowe obtained the personal identifying information (PII) of numerous identity theft victims, including their names, dates of birth, and social security numbers. Latonya Ware stole patients' names and social security numbers from a medical office where she worked, and gave the PII to Tilus and her cousin, Andrew Ware. Rowe electronically filed fraudulent tax returns utilizing the victims’ names and social security numbers, and the fraudulent refunds from these returns were loaded onto prepaid debit cards that Tilus and Andrew Ware used to purchase gift cards and other merchandise from retail stores. Fraudulent refunds claimed by Andrew Ware, Tilus, Latonya Ware and Rowe from the stolen identities totaled approximately $137,132.
Court documents state that Andrew Ware, David Tilus, Jaqwayn Henry, Alex Dontfred and Fritznel Etienne utilized victims’ access devices, without their authorization, to purchase merchandise totaling at least $1,000 in a single year. These defendants obtained credit card numbers from various victims and used these stolen access devices to purchase merchandise, gift cards and prepaid debit cards for later use. The total amount of fraudulent charges made or attempted to be made by Andrew Ware, Tilus, Henry, and Dontfred utilizing the stolen credit cards is $49,561.88. From approximately January 20, 2012 through January 22, 2012, the total amount of fraudulent charges made or attempted to be made by Etienne utilizing a stolen credit card number is $11,942.23.
Co-defendant Jaqwayn Henry, 23, of Lauderhill, is a fugitive. The indictment was dismissed against Latanya Ware.
Mr. Ferrer commended the investigative efforts of IRS-CI, the USSS, and BSO. The case is being prosecuted by Assistant U.S. Attorneys Alicia Shick and Harry Wallace.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Anchorage Man Indicted by Federal Grand Jury for Wire Fraud Theft of Government Funds, Federal Employees' Compensation Act Fraud, and Social Security FraudRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Amancio Zamora Agcaoili, Jr. was indicted by a federal grand jury in Anchorage for wire fraud, theft of government funds, Federal Employees’ Compensation Act fraud, and social security fraud.
Agcaoili, 56, is the sole defendant named in the 18-count indictment, together with two forfeiture allegations.According to the indictment, between at least on or about February 12, 2009 and continuing thereafter until the present, Agcaoili, a United States Postal Service employee, devised and participated in a scheme to defraud the Department of Labor Office of Workers’ Compensation Program and the Social Security Administration Disability Insurance Benefits program of funds totaling at least $334,000. Agcaoili is alleged to have been receiving both federal workers’ compensation and federal social security disability payments by engaging in a scheme to defraud the federal government about the nature and extent of his injury and about the other work he was performing and income he was receiving.
The indictment alleges that despite Agcaoili’s disability claims, Agcaoili went dipnetting and fishing on multiple occasions every summer between 2009 and 2013. In addition, the indictment alleges that Agcaoili lied to the federal government on his annual forms when Agcaoili indicated that he did not perform any work between at least February 2009 and continuing until the present, when he was working and receiving income for performing services such as preparing immigration paperwork and tax returns. In addition, the indictment alleges that Agcaoili concealed and failed to disclose to the Social Security Administration that he was receiving workers’ compensation payments in order to continue receiving social security disability payments to which he was not entitled.
Assistant U.S. Attorney Yvonne Lamoureux, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of up to 20 years in prison, a fine of up to $25,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
“Each time someone intentionally defrauds the United States in order to receive federal benefits, such as workers’ compensation and disability payments, it undermines the integrity of those federal programs, and harms all law abiding citizens. We are committed to investigating fraud involving federal programs, and to prosecuting theft of government funds in all its forms,” said Kevin Feldis, First Assistant United States Attorney and Criminal Division Chief for the District of Alaska.
The United States Postal Service Office of the Inspector General and the Social Security Administration Office of the Inspector General conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
17 April 2014
Washington Park Woman Pleads Guilty to Failure to Register as A Sex OffenderRead the Press Release
Follow @SDILNewsOn April 16, 2014, Amber M. Salts, 27, of Washington Park, Illinois, pled guilty in federal court, in East St. Louis, to failure to register as a sex offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Salts is scheduled for sentencing on August 1, 2014. She faces a term of imprisonment of up to ten (10) years, a fine up to $250,000, or both, and a term of supervised release of five (5) years to life of supervised release, and a mandatory special assessment of $100.
The violation occurred between June 2012 and June 2013, when Salts moved to Illinois from Missouri after being released from parole in 2012, following a conviction of Passing a Bad Check of $500 or More in Howell County, Missouri. She was required to register as a sex offender under both Illinois law and the Sex Offender Registration and Notification Act (SORNA), because of her conviction of Permitting the Sexual Abuse of a Child on July 14, 2009, in Madison County, Illinois. Salts signed a Missouri sex registration compliance form on June 28, 2012, then traveled to Illinois where she resided since. Salt was interviewed by Fairview Heights police officers on January 8, 2014, after her arrest for shoplifting. She provided the officers with a Washington Park, Illinois, address and stated she last registered as a sex offender Illinois in October 2013. Salts admitted not having registered within the three-day timeframe after moving to Illinois. Salts knowingly failed to comply with either Illinois, Missouri and SORNA sex offender registration requirements.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the United States Marshals Service and the Fairview Heights Police Department. The case is assigned to Assistant United States Attorney Daniel T Kapsak for prosecution.
Ware Man Pleads Guilty to Social Security FraudRead the Press Release
BOSTON – A Ware man pleaded guilty today to defrauding the Social Security Administration of more than $50,000.
Carl Lynch, 43, pleaded guilty before U.S. District Court Judge George A. O’Toole, Jr. to theft of public money. In March 2014, he was charged in a felony Information. Sentencing is scheduled for July 22, 2014.
In 2003, Lynch began receiving Social Security disability benefits. In 2007, however, while still collecting disability benefits, Lynch began working under another man’s identity as a personal care provider for an elderly person in Rehoboth. Lynch’s income from this job, which averaged about $80,000 per year, would have made him ineligible to receive disability benefits. Lynch did not report this work to the Social Security Administration (SSA), and, in fact, in February 2013, he falsely told SSA that he had not worked since 1998. In December 2013, Lynch admitted to investigators that he worked under a false identity to conceal his income from SSA. Through this scheme, Lynch received $50,264 in benefits that he would not have received if Social Security had been aware of his actual work and income.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Lieutenant James J. Trombetta, Acting Chief of Police of the Rehoboth Police Department, made the announcement today. The case is being prosecuted by Special Assistant United States Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
U.S. Attorney for Western Pennsylvania Convenes Working Group on Addiction: Prevention, Intervention, Treatment and RecoveryRead the Press Release
PITTSBURGH – David J. Hickton, United States Attorney for the Western District of Pennsylvania, today announced that he has convened a group to develop and implement solutions to Western Pennsylvania’s opiate overdose epidemic.
The U.S. Attorney’s Working Group on Addiction: Prevention, Intervention, Treatment and Recovery will bring together citizens, parents and those in recovery with physicians, providers and regional leaders to prevent opiate overdoses and deaths throughout Western Pennsylvania. Specifically, individuals who have direct experience with addiction and specialists in the fields of public health, law enforcement, human services, pharmacology, drug treatment and recovery will make up the Working Group. The group had an initial meeting on April 7, and created three subcommittees to focus on Community Outreach/Education; Treatment; and Quality, Safety and Outcomes.
U.S. Attorney Hickton said, “We cannot prosecute our way out of the problem of opioid addiction. We need to better address the demand side of the problem by being more attentive to and understanding of addiction, treatment and recovery. Opiate overdoses affect all age groups, all ethnic groups, men, women, and children, and it is destroying lives and killing people. We cannot wait another day to combat this scourge on our communities.”
The Working Group will be co-chaired by Neil A. Capretto, D.O., F.A.S.A.M., Medical Director of Gateway Rehabilitation Center, and Michael Flaherty, Ph.D., Clinical Psychologist. Working Group members currently include:
- Jim Rohr, Executive Chairman, PNC, and former Chairman of the Allegheny Conference on Community Development;
- Mike Zemaitis, Ph.D., Professor of Pharmaceutical Sciences, University of Pittsburgh School of Pharmacy;
- Marc Cherna, Director, Allegheny County Department of Human Services;
- Reverend DeNeise Welch, Bidwell Presbyterian Church;
- Antoine Douaihy, MD, Associate Professor of Psychiatry, University of Pittsburgh School of Psychiatry;
- Fred Thieman, President, Buhl Foundation;
- Sabato Anthony Stile, MD, Medical Director, UPMC Behavioral Health Associates;
- Karen Hacker, MD, MPH, Director, Allegheny County Health Department;
- Debra M. Kehoe, R.N. BSN, MsEd., Executive Director, The Pennsylvania Alliance for Safe and Drug Free Children;
- James Schuster, MD, MBA, Chief Medical Officer, Community Care Behavioral Health Organization;
- David McAdoo, Director, Southwest Behavioral Health Management;
- Latika Davis-Jones, PhD, MPH, MSW, Administrator, Allegheny County Bureau of Drug and Alcohol Services;
- Carmen Carpozi, Founder, Sage’s Army; Parent Advocate – Education and Prevention;
- Lucy Garrighan, CEO, Jade Wellness Center and Parent Advocate for Treatment;
- Scott Golden, MD, VA Pittsburgh Health System; and
- Robert Woolhandler, MD, Family Practitioner.
The group will be meeting on a regular basis, and is expected to issue interim recommendations within 60 to 90 days that will include an action plan for long-term reform.
Tye Albright Sentenced to Prison for Drug ChargesRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings on March 27, 2014 before U.S. District Judge Susan Watters, TYE DUSTIN ALBRIGHT was sentenced to 180 months imprisonment and 5 years supervised release.
The sentence is in connection with Albright's November 2013 guilty plea to conspiracy to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Suek, the government stated that on November 4, 2011, the drug task force in Billings conducted a controlled buy of methamphetamine with a confidential informant. That buy led to the identification of the source of the methamphetamine.
On November 8, 2011 and December 30, 2011, the task force in Billings bought 2 ounces of meth from the identified source. On January 2, 2012, the source was interviewed and his house was searched. He admitted selling meth for the last year. He admitted that his source is in Denver and he obtained 20-30 pounds of methamphetamine that he sold in Billings. Law enforcement seized over 5 pounds of methamphetamine from the source's house. The source's girlfriend and confidential information corroborate the source's statements.
On October 2, 2012, a controlled purchase of methamphetamine was made from an individual that drove to the defendant's home during the deal to obtain the methamphetamine purchased. Drug task force officers surveilled the transaction.
On October 9, 2012, a search warrant was executed at the defendant's house. Task force officers seized seven grams of pure methamphetamine as well as cash and drug paraphernalia.
After the source was charged with federal drug crimes and pleaded guilty, the source was interviewed and identified one of his main Billings customers as the defendant, Tye Albright. The source estimated that he supplied Albright with 30 pounds of methamphetamine up to the time of the source's arrest, in January 2012.
The term pure methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
Two Individuals Arraigned for Methamphetamine DistributionRead the Press Release
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable”
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that MICHAEL ALLEN COOPER, age 39 and AMANDA JO JONES, age 24, both of Moore, Oklahoma were arraigned in federal court today on charges of Conspiracy To Possess With Intent To Distribute And Distribute Five Hundred (500) Or More Grams Of mixture or Substance Containing a Detectable Amount of Methamphetamine, a Schedule II Controlled Substance, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(A).
The Criminal Complaint filed on April 14, 2014, alleges that beginning in or about August 19, 2013, through on or about April 8, 2014, in the Eastern District of Oklahoma and elsewhere, the defendants, did willfully and knowingly combine, conspire, confederate and agree together, and with other persons known and unknown, to Possess with Intent to Distribute and Distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine.
The charges arose from a joint investigation by the Tulsa Police Department, the West Siloam Springs Police Department, the Adair County Sheriff’s Office, the Delaware County Sheriff’s Office, the Delaware County District Attorney’s Investigator, the District 27 District Attorney’s Drug Task Force, the Oklahoma Bureau of Narcotics, the United States Postal Inspection Service, Office of Inspector General and the Drug Enforcement Administration (DEA).
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. Both defendants were remanded into the custody of the United States Marshal Service.
The statutory range of punishment for COOPER is not less than life imprisonment and/or up to $20,000,000.00 in fines.
The statutory range of punishment for JONES is not less than 10 years imprisonment and/or up to $10,000,000.00 in fines.
First Assistant United States Attorney Doug Horn represented the United States.
Two Former Corporate Executives of Samarion, Inc. Charged with Securities Fraud and Conspiracy to Defraud InvestorsRead the Press Release
Jackson, Miss - Mark E. Rodgers, 51, of Houston, Texas, the former Chief Executive Officer of Samarion Solutions, Inc., and Samer N’ser, 52, of Ridgeland, Mississippi, the former Chief Technology Officer of Samarion, Inc., have been charged with one count of conspiracy to defraud investors in the sale of securities and eight counts of securities fraud, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
The indictment in this case alleges that from approximately 2006 through 2009, Rodgers and N’Ser conspired to intentionally mislead Samarion, Inc., investors in Mississippi and Alabama. During that time, Samarion, Inc. (formerly known as Valence Broadband, Inc.) was a corporation operating out of Madison County, Mississippi. The business plan of the company was to produce a viable monitoring system, commonly referred to as the “Samarion Solution”, for installation in nursing homes, and elsewhere, that could predict when a patient might fall, prevent abuse and/or neglect by staff, and improve the over-all care of nursing home patients.
According to the indictment, Rodgers and N’Ser conspired to fraudulently misrepresent to potential investors material facts that would affect their decision to invest, including the financial strength of the company and the true functionality and capacity of the product, among other things. The indictment alleges that Rodgers and N’Ser sold stock to investors representing that the investment funds would be used solely for the business purposes of the company, and instead used the money for their own personal benefit. Rodgers and N’Ser are also facing state criminal charges in the State of Alabama.
Alabama Securities Commission Director, Joseph Borg said, "The willingness of the United States Attorney's Office for the Southern District of Mississippi and the FBI to work jointly with state securities regulatory agencies is a vital part of protecting the public from financial fraud and exploitation. We are proud of the collaborative efforts of the federal and state law enforcement agents and prosecutors in this case."
The case has been set for trial on May 19, 2014 before U.S. District Judge Daniel P. Jordan III. The maximum penalty for conspiracy is five years in prison and a $250,000 fine. The maximum penalty for securities fraud is five years in prison and a $10,000 fine.
The public is reminded that an indictment is a formal charge that a defendant has committed a violation of the federal criminal laws. All defendants are presumed innocent unless and until proven guilty.
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Our nation-wide commitment to reducing gun crime in America.
Two Armed Bank Robbers Sentenced to More Than Six Years in Prison for Robbing the Citibank in AlamedaRead the Press Release
OAKLAND – Craig Goatley was sentenced today to 78 months in prison and Calvin Earl Odom, Jr., was sentenced on April 10, 2014, to 86 months in prison for armed bank robbery, announced U.S. Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
In pleading guilty, both men admitted that on the morning of Aug. 3, 2013, they robbed the Citibank, located at 1526 Webster Street in Alameda, Calif. Odom entered the bank first and sat down at a desk in the lobby area, purporting to be a bank customer. Goatley entered the bank moments later and proceeded to the customer line, where he waited for the next available teller. When the next teller became available, Goatley walked to the counter and brandished what appeared to be a black handgun. Goatley pointed the gun at the teller and demanded money. The frightened teller grabbed money from her teller drawers and tossed it in Goatley’s direction, ducking behind the teller counter. Goatley, thereafter, robbed a second teller who emerged from the back of the bank during the robbery. While Goatley was robbing the tellers, Odom pulled what appeared to be a black handgun from his waistband and pointed it at a bank employee who had been assisting him. Odom told the employee that the bank was being robbed and not to move. Goatley and Odom fled the bank, stealing $8,869. It was later discovered that the guns carried by Odom and Goatley were pellet guns.
Goatley, 28, of Oakland, and Odom, 25, of Berkeley, were indicted by a federal grand jury on Oct. 10, 2013, for armed bank robbery, in violation of 18 U.S.C. § 2113(a) and (d). Both men were arrested on Aug. 14, 2013, by the Alameda County’s Sheriff’s Office on separate charges and remained in state custody on those charges. The men initially appeared in federal court in November 2013, and have remained in federal custody since that time.
Both sentences were handed down by the Honorable Yvonne Gonzalez Rogers, United States District Court Judge in Oakland. Judge Gonzalez Rogers also sentenced each defendant to a 5-year period of supervised release.
Assistant U.S. Attorney Brian C. Lewis prosecuted this case with the assistance of Janice Pagsanjan. This prosecution is the result of an investigation by the Alameda Police Department and the Federal Bureau of Investigation.
(Goatley and Odom indictment )
Todd Franklin Sentenced to Prison for Drug ChargesRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula on March 26, 2014 before U.S. District Judge Donald Molloy, TODD SEAN FRANKLIN was sentenced to 121 months imprisonment and 5 years supervised release.
The sentence is in connection with Franklin's December 2013 guilty plea to conspiracy to distribute methamphetamine. In an Offer of Proof filed by Assistant U.S. Attorney Tara Elliott, the government stated that between May of 2007 and May of 2011, investigators of Lincoln County and the Northwest Drug Task Force (NWDTF), in an undercover capacity, made several purchases of both methamphetamine and marijuana from the defendant, Todd Sean Franklin.
During the week of January 5, 2013, Detectives were contacted by a confidential informant (CI). The CI advised detectives that Franklin told the CI that Franklin was selling methamphetamine and that he was obtaining the methamphetamine from an individual in the Sandpoint, Idaho area. On January 16, 2013, agents received the criminal history, vehicle registrations, and driver's license status checks for Franklin. The records check of Franklin's driver's license status indicated that his privileges were suspended. A records check of vehicles registered to Franklin indicates that he owns a 1990 GMC truck, bearing Montana license plate 719793A, registered in Flathead County. On January 15, 2013, agents contacted Montana Probation and Parole. The Probation and Parole Officer confirmed that Franklin is currently on Probation with the Montana Department of Corrections for Felony Distribution of Dangerous Drugs and Felony Possession of Dangerous Drugs.
Detectives were again contacted by the CI the week of January 13, 2013. The CI told detectives Franklin told the CI that Franklin would be traveling to Sandpoint within the next few days in order to purchase more methamphetamine.
On January 17, 2013, agents received a Montana District Court Search Warrant to affix a tracking device to Franklin's 1990 GMC truck. On January 18, 2013, agents affixed a GPS tracking device to Franklin's truck.
On January 30, 2013, the GPS tracker indicated that Franklin's truck traveled through Libby, Montana and stopped in Sandpoint, Idaho.
On January 31, 2013, agents were able to determine that the GPS tracking device located on Franklin's truck traveled from Sandpoint, Idaho north to Highway 2 and eastbound through Libby, Montana en route to Kalispell, Montana. Agents observed Franklin operating his truck and arranged to have marked patrol units conduct a traffic stop on Franklin due to the fact his driving privileges are suspended by the state of Montana. Franklin, as part of his probation with Montana DOC, cannot travel out of state without the permission of his probation officer.
Franklin did not have permission to leave the State of Montana. Patrol units conducted a traffic stop on Franklin's truck. When Franklin was ordered to exit the vehicle, Franklin refused the officers commands and started driving eastbound toward Kalispell, Montana at a high rate of speed. Once officers were able to stop Franklin's truck he was arrested and detained at the Flathead County Detention Facility. Franklin's truck was secured and towed to the Flathead County SWAT barn and secured with evidence tape.
Agents applied for and received search warrants from a Montana District Court for Franklin's residence and vehicles. Pursuant to the search detectives located several plastic bags each containing a quantity of suspected methamphetamine from the bed portion of the truck. A lab report indicated that the pure methamphetamine weighed in excess of 50 grams.
Three Indicted for Possession with Intent to Distribute Approximately Seven Pounds of MethamphetamineRead the Press Release
– Street Value of Approximately $210,000
LOUISVILLE, Ky. – An Ohio woman and two men from California were indicted by a federal grand jury in Louisville this week on charges of conspiring to knowingly and intentionally possessing with the intent to distribute fifty grams or more of methamphetamine, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Brenda Buenrostro, age 21, of Fairborn, Ohio, Ricardo Morales, age 27, of Los Angeles, California, and Luis Villa, age 29, of Milpitas, California were charged in a two count indictment. Because of the interstate nature of the crime and the large quantity of methamphetamine seized, the case was referred for federal prosecution.
According to a Metro Louisville Police Department arrest report, on March 27, 2014, police initiated an investigation after observing suspicious activity by the defendants. The investigation led to the search of the defendants’ room at the Economy Inn located at 3304 Bardstown Road, and resulted in the seizure of approximately seven pounds of methamphetamine, with an estimated street value of $210,000, along with various items of drug paraphernalia.
If convicted, the defendants face a mandatory minimum sentence of ten years in prison, a maximum sentence of life in prison, a fine of $10,000,000 and a term of supervised release of at least five years upon release from prison.
This case is being prosecuted by Assistant United States Attorney Larry Fentress and is being investigated by the Louisville Metro Police Department and the Federal Bureau of Investigation (FBI).
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Stockton Springs Woman Sentenced to Eight Months for Bank EmbezzlementRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Brittany
A. Mace, 24, of Stockton Springs, Maine, was sentenced today in U.S. District Court in Bangor by Judge D. Brock Hornby to eight months of imprisonment for bank embezzlement. The court directed that seven months of the sentence be satisfied by home detention, imposed five years of supervised release and ordered the defendant to pay almost $26,000 in restitution. The defendant pleaded guilty to the charge on November 14, 2013.Court records reveal that the defendant was a teller at Bangor Saving Bank. From about
August 23, 2010, to about November 3, 2011, the defendant stole almost $26,000 from the accounts of 48 bank customers, many of whom were elderly and some of whom had dementia.
The bank discovered the embezzlement in 2011 and reimbursed customers for their losses.
The investigation was conducted by the Federal Bureau of Investigation.Steven Munson Sentenced for EmbezzlementRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena on March 24, 2014 before U.S. District Judge Sam Haddon, STEVEN C. MUNSON was sentenced to 5 years' probation and $74,249.19 in restitution.
The sentence is in connection with Munson's November 213 guilty plea to embezzlement from an employee benefit plan. In an Offer of Proof filed by Assistant U.S. Attorney Timothy J. Racicot, the government stated that during the time period relevant to the charges in the Indictment, Munson was the sole owner of DDCS Express, Inc., a postal service provider based in Bozeman. DDCS operated mail routes pursuant to contracts with the U.S. Postal Service ("USPS"). DDCS sponsored an employee benefit plan - the DDCS Express, Inc. 401(k) Plan. The Plan was defined by ERISA as an employee benefit plan. DDCS was the Plan's administrator and sponsor and Munson was the Plan's trustee. The Plan allowed employees to make voluntary contributions through salary deductions. In addition, the Plan was to receive fringe benefit contributions from the USPS contracts, as each contract expressly required that DDCS make fringe benefit payments to each employee for all hours worked. The Plan was previously administered by Montana Pension Administration, Inc., and American Funds was the Plan's previous record-keeper, but both entities resigned in 2008 due to DDCS's deficient performance.
On July 16, 2010, the Employee Benefits Security Administration ("EBSA") received a complaint from a DDCS employee that Munson had not deposited the required amounts into the Plan and had not filed the required reports disclosing the financial conditions of the Plan. The EBSA opened an investigation and determined Munson did not make any deposits into the Plan from January 2007 through June 2010. He also failed to pay his employees all of the fringe benefits due and owing and eventually liquidated the 401(k) plan but did not return the remaining funds to his employees. The total amount of loss attributable to Munson's conduct is approximately $70,770.52, which is broken down as follows: $2,652.25 in unpaid contributions to the Plan, $46,219.28 in unpaid fringe benefits, and $21,898.99 in funds removed from the liquidated Plan account and not remitted to employees.
During the same period of time that he failed to fund and manage the Plan, Munson paid himself considerable sums of money. He wrote himself approximately $744,000 in company checks during the relevant time period.
St. Thomas Man Sentenced to 151 Months for Conspiracy to Possess and Possession with Intent to Distribute CocaineRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Isa Noel, 25, to 151 months in prison for conspiracy to possess with intent to distribute cocaine, and two counts of possession of cocaine with intent to distribute, to be followed by five years of supervised release, announced United States Attorney Ronald W. Sharpe.
On November 14, 2013, after a three-day trial in federal court, a jury found Noel guilty of the three charges. Evidence at trial established that Noel, a supervisor at GCG Ground Services at the Cyril E. King Airport on St. Thomas, used his position to smuggle cocaine past security checkpoints at the airport. Specifically, on or about September 16, 2012, Noel and another co-conspirator smuggled six kilograms of cocaine to a waiting courier in the public bathroom of the airport. The courier was arrested as he attempted to board a flight to the mainland United States. The courier received a 120-month prison sentence.
Evidence at trial also established that on October 17, 2012, Noel recruited a fellow baggage handler to deliver cocaine to another courier. Both the baggage handler and the courier were arrested and prosecuted. At Noel’s trial, four co-conspirators testified about his involvement in the conspiracy and distribution of cocaine. Joelvis Acosta Liz, Edisson Peguero Ortiz and Allen Pacquette pleaded guilty to drug charges prior to Noel’s trial. Kirsten Alexander pleaded guilty to misprision of a felony. All four testified against Noel during his trial.
The case was investigated by Homeland Security Investigations, the Federal Bureau of Investigation, Drug Enforcement Administration, U.S. Customs and Border Protection and Virgin Islands Police Department. The case was prosecuted by Assistant U.S. Attorney Nelson L. Jones.
St. Robert Man Sentenced for Heroin ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a St. Robert, Mo., man has been sentenced in federal court for his role in a conspiracy to distribute heroin in Pulaski County, Mo.
Robert E. Peetz, 27, of St. Robert, was sentenced by U.S. Chief District Judge Greg Kays on Tuesday, April 15, 2014, to seven years in federal prison without parole.
On Oct. 9, 2012, Peetz pleaded guilty to participating in a conspiracy to distribute heroin. Peetz admitted that he began selling heroin in the fall of 2010. Federal agents used a confidential source to make three undercover purchases of heroin from Peetz in August 2011. Peetz estimated that he had sold between 5 and 6 ounces of heroin (which is in excess of 100 grams).
This case was prosecuted by Assistant U.S. Attorney Gary Milligan. It was investigated by the Drug Enforcement Administration, the Missouri State Highway Patrol, the Pulaski County, Mo., Sheriff’s Department, the St. Robert, Mo., Police Department, the Waynesville, Mo., Police Department and the Lake Area Narcotics Enforcement Group.
Shiprock Man Pleads Guilty to Federal Assault ChargesRead the Press Release
ALBUQUERQUE – Dexter Dez, 28, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty this morning to an indictment charging him with two assault offenses. Dez entered his guilty plea without the benefit of any plea agreement.
Dez was arrested on July 11, 2013, on a criminal complaint alleging that he assaulted a non-Indian man on May 17, 2013, at a residence in Two Gray Hills, N.M., which is within the Navajo Indian Reservation. Dez subsequently was indicted and charged with assault with a dangerous weapon and assault resulting in serious bodily injury.
According to court filings, on the night of May 17, 2013, an intoxicated Dez entered the victim’s residence and punched him in the left eye with a box cutter. Dez then fled from the residence. The victim’s eyelids were severed as a result of the assault. The victim has had to undergo surgery to repair his eyelids and will require further surgery, including skin grafts.
Dez has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Dez faces a maximum penalty of ten years in prison.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety and the Farmington office of the FBI, and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
Serial Bank Robber Sentenced to 20 Years in Federal PrisonRead the Press Release
FBI Says Luis de la Garza was the “Mesh Mask Bandit”
DALLAS — Serial bank robber Luis de la Garza, 59, of Farmers Branch, Texas, dubbed the “Mesh Mask Bandit,” was sentenced this afternoon by U.S. District Judge Jane J. Boyle to serve a total of 240 months (20 years) in federal prison, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to plea papers filed, de la Garza not only admitted committing the five below-listed bank robberies, he stipulated he committed an additional 13 bank robberies and an additional two attempted bank robberies in the Dallas – Fort Worth metroplex between April 2010 and May 2013.
March 18, 2013 Chase Bank 6300 Harry Hines Blvd.
Dallas, Texas
April 5, 2013 Grand Prairie State Bank 2317 South Belt Line Rd.
Grand Prairie, Texas
April 22, 2013 Wells Fargo Bank 13297 Josey Lane
Farmers Branch, Texas
April 29, 2013 Capital One Bank 200 North Mesquite Street, Suite 121
Arlington, Texas
May 15, 2013 Chase Bank 111 South Garland Ave., Suite 150
Garland, TexasIn each of these five bank robberies, de la Garza wore long-sleeved clothing, a mesh mask, cap and gloves to disguise his identity, and in each robbery he brandished and used a BB pistol. In each of the robberies, the tellers were in fear for their lives. During the last robbery, on May 15, 2013, a bank customer grabbed de la Garza’s pistol and struck him in the head. While a struggle then ensued between de la Garza and a bank employee, de la Garza broke free and fled the bank, leaving behind his pistol, which Garland Police Department determined was a CO2 BB gun.
The investigation was conducted by the FBI, Dallas Police Department, Grand Prairie Police Department, Farmers Branch Police Department, Arlington Police Department, Garland Police Department, Carrollton Police Department, Addison Police Department, Lewisville Police Department and Plano Police Department. Assistant U.S. Attorney Keith Robinson prosecuted.
Sentencing for April 10 - 17, 2014Read the Press Release
John David Hunt, 38, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 17, 2014, for being a felon in possession of a firearm. Hunt was arrested in Gillette, Wyoming. He received 33 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jonathan Earl Olaveson, 29, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 17, 2014, for attempted online enticement of a minor. Olaveson was arrested in Gillette, Wyoming. He received 120 months imprisonment, to be followed by five 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 Internet Crimes Against Children Task Force.
Jose Luis Uribe-Ramos, 23, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 14, 2014, for illegal re-entry of a previously deported alien into the United States. Uribe-Ramos was arrested in Gillette, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Armando Loza-Baltazar, aka Nicolas Loza-Baltazar, aka Juan Carlos Castellanos, 30, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 14, 2014, for illegal re-entry of a previously deported alien into the United States. Loza-Baltazar was arrested in Rawlins, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Mercedes Tojin-Lux, 36, of Guatemala, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 14, 2014, for illegal re-entry of a previously deported alien into the United States. Tojin-Lux was arrested in Cheyenne, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Tammy O’Neal, 44, of Rock Springs, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 14, 2014, for obstruction of correspondence (mail tampering). O’Neal appeared pursuant to a summons. She received 2 years of probation and was ordered to pay a $100.00 special assessment. This case was investigated by the U.S. Postal Service.
Justin M. Epley, 31, of Gillette, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 14, 2014, for being a felon in possession of a firearm. Epley was arrested in Gillette, Wyoming. He received 72 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 Bureau of Alcohol, Tobacco, Firearms and Explosives.
Bradley Michael Ward, 44, of Gillette, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 11, 2014, for being a felon in possession of a firearm. Ward received 21 months and 6 days imprisonment, to be followed by two years of supervised probation, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Silverio Orozco, 25, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on April 11, 2014, for conspiracy to possess with intent to distribute, and to distribute 50 grams or more of methamphetamine. Orozco was arrested in Cheyenne, Wyoming. He received 36 months imprisonment, to be followed by two years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the U.S. Drug Enforcement Administration.
Luis Enrique Lopez-Herrera, aka Luis Enrique Lopez, 39, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on April 10, 2014, for illegal re-entry of a previously deported alien into the United States. Lopez-Herrera was arrested in Rock Springs, Wyoming. He received 33 months imprisonment, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Juan Herrera-Leyva, 52, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on April 10, 2014, for illegal re-entry of a previously deported alien into the United States. Herrera-Leyva was arrested in Gillette, Wyoming. He received four months imprisonment, was order to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Rockland Man Pleads Guilty to Pharmacy RobberyRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Elbert
Ranquist, 43, of Rockland, Maine, pleaded guilty today in U.S. District Court to interfering with commerce by robbery.
According to court documents, on the evening of August 5, 2013, Ranquist drove to
Jensen’s Pharmacy in Rockland in his wife’s distinctive vehicle. He entered the pharmacy wearing sunglasses, a hooded sweatshirt pulled tight around his face, a small blue backpack and blue surgical gloves. He went to the counter holding a knife in his left hand and demanded oxycodone from the pharmacist. The pharmacist, who recognized the defendant as a regular customer, asked out loud if he was really being robbed by “Elbert Ranquist.” The defendant absconded with 10 5mg oxycodone pills.Ranquist faces up to 20 years in prison and a fine of $250,000, or both. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Federal Bureau of Investigation, the Rockland Police
Department and the Maine State Police.Roberto Tapia Sentenced to 70 Months in PrisonRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez today sentenced Roberto Tapia, 55, to 70 months in prison for using the Virgin Islands Department of Planning and Natural Resources (DPNR) as a criminal enterprise to engage in illegal drug trafficking activities, United States Attorney Ronald W. Sharpe announced.
Tapia, DPNR’s former Director of Environmental Enforcement, pleaded guilty on September 19, 2013 to using DPNR as a criminal enterprise to engage in illegal drug trafficking activities. He was arrested on May 17, 2013, and charged with conspiracy to possess with intent to distribute cocaine, and possession of a firearm in furtherance of drug trafficking. On September 12, 2013, he was charged in a 34-count second superseding indictment, along with six other defendants, including Virgin Islands police sergeant Angelo Hill, Raymond Brown, Hector Alcenio, Edwin Monsanto, Stephen Torres, and Eddie Lopez-Lopez.
The indictment and plea followed an extensive investigation conducted by the Federal Public Corruption Task Force, which culminated with the arrest of Tapia while in possession of seven kilograms of cocaine.
“It’s a sad day when a high-ranking law enforcement officer has to be sentenced for violating the public’s trust,” U.S. Attorney Sharpe said. “The egregious criminal conduct perpetrated by this individual, who chose to abuse his position for selfish gain at the expense of the safety and welfare of the community, taints every hard-working law enforcement officer. My office will continue to vigorously fight public corruption, and target individuals who undermine the public trust.”
The case was investigated by the Public Corruption Task, which comprises the Federal Bureau of Investigation (FBI); U.S. Drug Enforcement Administration (DEA; Virgin Islands Police Department; U.S. Marshals Service; Internal Revenue Service Criminal Investigation Division (IRS-CI); U.S. Department of Homeland Security, Homeland Security Investigations (HSI); U.S. Customs and Border Protection (CBP); United States Coast Guard; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Office of the Virgin Islands Inspector General. It was prosecuted by Assistant U.S. Attorney Kelly B. Lake.
Remarks as Prepared for Delivery by U.S. Attorney Paul J. Fishman at the Prisoner Reentry: Breaking the Cycle ConferenceRead the Press Release
ST. PETER’S UNIVERSITY, JERSEY CITY, N.J.
Thank you, Jim [McGreevey], for that very nice introduction. And thank you to both you and Mayor Fulop for having the vision and commitment to organize this conference and for bringing us all together. The program looks incredible and my only regret is that my schedule won’t allow me to stay after my speech. But this topic is so critical and so central to the mission of my office that I am honored for the opportunity to kick off the program by highlighting what the Justice Department is doing across the country and, in particular, here in federal court in New Jersey.
Every other Tuesday at 5:00 in the afternoon, about two dozen people come to a courtroom on the second floor of the Martin Luther King Jr. Federal Courthouse in Newark. At first, it looks like a lot of other proceedings in that courthouse. A federal Magistrate Judge, Judge Madeline Cox Arleo, sits on the bench. In what we call the well of the courtroom, at the two tables usually occupied by lawyers or their clients, there are a couple of lawyers from the federal Public Defender’s Office; four people from the U.S. Attorney’s Office; and at least one or two probation officers. Behind them, sitting on the benches usually occupied by spectators, are about 15 other people.
But this proceeding is different. Everyone on the benches has very recently left federal prison – some with a stop at a halfway house, others directly from jail. And one by one, each of them is called to the front of the courtroom and sits down at one of the tables to talk to the judge. “How is your daughter,” she asks one. “Tell me about your new apartment,” she inquires of another. “Can we help you print your resume?” “Do you want a lawyer to help you get a payment plan so you can get your driver’s license back?” “Do you have to leave early today to get to class?” And, finally, “What do you need?”
And as you listen to her questions, and hear the answers, and watch the interaction among all of those people, you begin to realize there is something very special, and really inspiring, going on in Courtroom 2A.
The last time those defendants were in that courthouse, lawyers from my office were asking another judge to send them to prison for a substantial period of time. The last time those defendants were in that courthouse, a different judge explained why the things they had done and the crimes they had committed required that they receive a meaningful term of incarceration.
Now when they walk in, members of my office and court personnel are editing their resumes, teaching them how to interview for a job, and offering to tutor them in math. The judge is helping them to register for college, find apartments, and get jobs – and is literally taking them to a charter school to help them enroll their kids. Now that they have served their time, those defendants are being asked by lawyers and staff from that same U.S. Attorney’s office and by a federal judge working with probation officers and public defenders, “What do you need?”
How did we get here? And is there an inconsistency in our approach?
The answer is “no.” We have a crisis in this country. Our federal and state prisons currently house 1.5 million people. Hundreds of thousands more are in local jails. In all, we estimate that more than 1 in 100 adults are behind bars. More than 200,000 are in the custody of the federal Bureau of Prisons, and it is my job, and the job of the people who work in my office, to put several hundred more there every year. In my judgment, they have committed crimes for which jail is the appropriate punishment.
But for almost all of them, their incarceration doesn’t and shouldn’t last forever. More than 95 percent of federal prisoners will be released and, when they are, the overwhelming majority go home – or somewhere near where they once called home. And it is on that journey and at its destination that they may well fail if they don’t have help.
Many come back to families that are barely intact, if they are there at all. Housing is hard to find, and jobs even tougher. It’s hard enough in today’s economy for lots of people without criminal records to find work, and here we’ve been particularly slow to recover. Imagine what it’s like for those just out of prison to compete in that environment.
And then add in the educational obstacles. Of the 20 fastest growing occupations, 13 require postsecondary education. But only 22 percent of prisoners have any postsecondary experience, compared to more than half of the rest of us. Two in five prison and jail inmates – 40 percent – lack a high school diploma or its equivalent.
Even when ex-offenders get a job, they face an uphill battle. A report from the Pew Charitable Trusts found that past incarceration reduced subsequent wages by more than 10 percent, cut annual employment by more than two months and reduced yearly earnings by 40 percent.
And it turns out that the ability to find a job after being released from prison is one of the greatest predictors of success on the outside. But without the foundations that the rest of us work so hard to build and maintain – the things that quite frankly we sometimes take for granted – the recently released are often alone, tempted by their past lives, sometimes still on the hook of an addiction, and too frequently with too few alternatives to falling, or stumbling, back into a life that they want to avoid if they can.
So it’s hardly surprising that so many fail. In fact, nationally, two out of every three people released from state prisons will be arrested again within three years of their release. Half of those released will end up back in prison in that time. Released federal prisoners do a little better: they have a 40 percent chance of being re-arrested or having their supervision revoked – which would send them back to prison in their first three years out.
These numbers and the realities they represent are daunting. With roughly 700,000 people coming out of our state and federal prisons every year, plus the millions that flow through jails at the local level, recidivism has terrible consequences for the lives of offenders and their families. It has serious, serious implication for public safety. And with resources already severely strained at the federal, state and local levels, it just costs too much money. The Bureau of Justice Statistics estimates that more than $74 billion is spent on federal, state and local corrections annually. And it costs nearly $30,000 to house a federal inmate for a year.
So how do we stop this terrible cycle?
At the national level, my boss, Attorney General Eric Holder, has convened a Federal Reentry Council to try to bring down the barriers that stop former prisoners from succeeding. The council comprises 20 federal agencies, all with common goals: to make our communities safer by reducing recidivism and victimization; to help those getting out to become productive citizens; and to save limited resources.
How do they do that? Part of it is just raising awareness. There are a huge number of misconceptions out there about the rights and obligations of those who have served time. Can they live in public housing? Yes. Can you get tax credits for hiring them? Yes. Can employers get bonded against theft? Yes. And so, among other things, the Council has promoted and published on line a series of what they call “mythbusters,” answering those questions, among others.
Part of it is knocking down systemic barriers and obstacles that make it difficult for people who have already been held accountable and paid for their crimes to contribute productively and to support themselves, their families and the economy.
In April 2011, Attorney General Holder sent a letter to every state Attorney General citing a comprehensive study by the Justice Department and the American Bar Association cataloguing more than 38,000 statutes across the 50 states and other territories that impose collateral consequences on people convicted of crimes. Although some of those restrictions serve public safety, many impose unnecessary burdens – including denial of employment and housing opportunities – that cripple an individual trying to make a new start. So he asked the states to evaluate relevant laws and policies and he made the Department’s resources available to provide support. And we in the Department of Justice looked to our own house – conducting a review of federal collateral consequences identified in the study.
Early last year, also under the Attorney General’s direction, the Justice Department began a comprehensive review of the criminal justice system – including charging, sentencing, incarceration and reentry – to identify areas in which federal laws could be enforced more fairly and efficiently. The idea was to figure out which practices were more successful and which might actually be working against our goals.The resulting initial reform package – called the “Smart on Crime” initiative – is already driving us to reexamine our priorities, more fairly enforce laws and apply just punishments, strengthen protections for vulnerable populations and focus even more strongly on prevention and reentry.
The final piece is targeting services to the population we’re trying to reach. This has to start in jail. As the Director of the Federal Bureau of Prisons has pointed out, most federal inmates leaving prison need “job skills, vocational training, education, counseling, and other assistance such as drug abuse treatment, anger management, parenting skills, and linkage to community resources for continuity of care if they are to successfully reenter society.” In other words, today’s BOP realizes that reentry begins the day an inmate enters a facility, not the day the inmate leaves it.And it must continue in halfway houses where many federal inmates begin their reintegration. But for too long, the policies and culture of those facilities were actually counterproductive in many ways. So just last month, Attorney General Holder announced that the Justice Department would require federal halfway houses – which saw 30,000 inmates go through their doors in just the past year – to enhance their treatment services. Those facilities will now have to provide a specialized form of treatment to prisoners, including those with mental health and substance abuse issues, provide greater assistance to inmates who are pursuing job opportunities – such as permitting cell phones to be used by inmates and providing funds for transportation – and expand access to equipment that allows more inmates to reenter society through home confinement.
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But even that isn’t enough. So here’s how we got to courtroom 2A: Three years ago, I asked people in my office – and then in the courthouse – if we could do better. I asked if we had the resources – the time, the money, the commitment – to try something new. There were others who were already running or participating in reentry projects around the country, but we had never done it in federal court in New Jersey. Those conversations, and the hard work of a lot of people, led to the development of the first federal reentry court in New Jersey – what we call our “ReNew” program. That hard work, and most of all, the hard work of the program participants who have dedicated themselves to reimagining their lives – is why courtroom 2A is such a special place.
Because we know that it isn’t enough just to provide the right services; we must provide them at the right time in the right place. Former offenders are at a unique crossroad – poised to become law-abiding contributors or frequent flyers in the criminal justice system. They need to know the path of redemption is theirs to choose – and that they will be supported in their journey and their decision to leave what is familiar and trade it for the prospect of a better future.
To be clear, this isn’t a program for white-collar criminals who just did 18 months in a minimum security prison. The participants in our program were convicted of manufacturing and distributing of dangerous narcotics, selling and transporting firearms, and other very serious and dangerous crimes. They served years – in some cases 10 years or more – in federal prison and were predicted to be some of the most likely to reoffend.
Because of those challenges, it isn’t all smooth sailing. They have to work long hours at difficult jobs – sometimes more than one – and pursue challenging education and other programs to make progress. Some have family members who aren’t supportive and others have the wrong friends who want to reunite with their old buddies. Some just aren’t quite ready to turn away from their previous lives.
So, like everybody else, some of our participants make mistakes. There are excuses, impediments, and apologies. And there are sanctions. Some have to stay in the program for longer, losing credit. Some end up being directed to do some community service and others get some additional house arrest. But all of it – all of it – is geared toward getting these individuals back on their feet, ready and able to make it. And every two weeks, they remind us why this work is so important and they impress us with their ability to evolve and persevere.
Amare Terrell was a straight “A” student until, at around the age of 13, he began to rebel against his mother. He was sent to live with his paternal grandparents and with his father – a heroin addict who introduced him to the drug culture of the streets. He dropped out of high school, had a number of run-ins with the law, and in December 2008, was prosecuted by my office for conspiracy to distribute heroin.
Last year, he was one of the first to participate in our reentry court. Now, in front of Judge Arleo and the other participants, Mr. Terrell is leading in a different way. He obviously takes his role as a father seriously; he talks to the judge about his need for health insurance and a 401(k); and he is focused on what he needs to do to keep his life on track. A couple of months ago, right before one of the 700 snowstorms we had this winter, another participant told Amare that he was worried because he didn’t have any food in his house. And, as many of you know, grocery stores aren’t so plentiful in the urban parts of Essex County. Mr. Terrell told him to meet him at the grocery store in 10 minutes, where he bought him $70 worth of groceries. And, with our encouragement, Mr. Terrell recently spoke to a group of people suspected of committing the worst crimes in a neighborhood and presented a powerful message about what he lost when he broke the law. Next month, Amare Terrell will be one of the first four to graduate from our program. We know how much that means to him, and we hope he knows how much that means to us.
Also graduating is Eddie Wilson. Eddie’s mother and father were intravenous drug users who died of HIV/AIDS. He was raised by his grandmother who also passed away when Mr. Wilson was still a teenager. He was prosecuted by my office for selling guns and ammunition to an undercover ATF agent.
From the start of reentry court, Mr. Wilson was focused on getting his college degree, which has led to his being called the “Professor” in court. But his dedication is clear. He lived in a shelter until he could save enough money to pay for an apartment. But he never seemed down. When asked by the judge about his situation, he might say it was hard because he didn’t have any food. Or he might let her know that he had to be out of the shelter by 7:00 in the morning. But he would also say that it was probably good, because it made him get up to start studying. And the judge, encouraging his dedication, helped him to get a job at the college he attends.
Like Mr. Terrell, Mr. Wilson shows real ownership in this program. More than a few times, he has discovered and told us and the other participants about different programs that might help with rent payments or furniture. Through these efforts, he has probably taught the team as much about reentry as they have taught him.
Muhammed Shabbaz is one of the newest participants – he was released from a halfway house in mid-February. He also has the distinction of having served 14 years or so in prison – one of the longest sentences of anyone in the reentry court – for distribution of heroin and cocaine. In spite of that, or maybe because of it, he comes across in court as someone who is spiritual and has thought a great deal about how he wants to live his life and what comes next. He has a job, and has resumed a stable relationship with the woman to whom he was engaged when he went to prison. He has a facility for math, and will likely return to school to study accounting.
One side note on the extent to which our reentry court is full service: shortly after he joined the program, Mr. Shabbaz told the court that he had resumed living with his longtime girlfriend, and that they had had a religious wedding but weren’t formally married. Judge Arleo offered to perform the ceremony. He put her off. She offered again. And again. And again. She even offered to buy a cake. None of which is surprising if you know Judge Arleo. Finally they set a date. He and his wife wrote their own vows. And one Tuesday evening, not so long ago, in Courtroom 2A, we all learned Mr. Shabbaz is not only good at math, but he’s also a bit of a poet.
Today, you will hear other stories from Judge Arleo, from Tom Eicher, the Chief of our Office’s Criminal Division, and perhaps from Mr. Terrel, Mr. Shabbaz, Mr. Wilson, or their colleagues. You will hear about their successes and their failures, their excitement and their despair. You will learn that, as much work as the reentry team does to find job opportunities, housing, furniture and even schools and daycare for their children, it is the participants themselves who direct and control their experience. It is our job, our responsibility, to give them the opportunity to do just that.
And it’s not just for them. As long as 1 in 28 children – and 1 in 9 African American children – go to bed each night with an incarcerated parent – as long as our kids are continuing the cycle of generational crime by embarking on lifetimes of involvement with the justice system – our work is not done.
I, and the people who work with me in the U.S. Attorney’s Office, understand that we will only succeed if we take a multifaceted approach to law enforcement. We understand the need, as Attorney General Holder, has said, to be smart on crime. We will never arrest our way out of the problems of crime. Only by emphasizing prevention and reentry, together with enforcement, do we have a chance to make a real and lasting impact on the violence and other issues that plague our communities.
On Monday night, I sat at my family’s Seder, and reflected on the ideas of redemption, of spiritual reawakening, of the rebirth that comes with spring – all themes of Passover. This Sunday, Christians will celebrate Easter, a holiday that celebrates many of the same ideas and hopes, and our collective ability to stretch beyond our limitations, to change ourselves for the better.
I, and the people who work with me on the ReNew court, understand that promise and we see it every day. No matter what our religion, we are a group that believes in second chances.
Redemption is about the triumph of hope over despair – the belief that we all have the potential for and the ability to change, and perhaps to do so dramatically, even if the road is hard. And even if we need someone like a judge to look us in the eye and ask: “What do you need?”
Thank you.Real Estate Developer Sentenced to Jail for Filling Protected Mississippi WetlandsRead the Press Release
William R. “Rusty” Miller, a real estate developer from Fairhope, Ala., was sentenced today in federal district court in Gulfport, Miss., for the unpermitted filling of wetlands near Bay St. Louis, Miss., in violation of the Clean Water Act, announced Acting Assistant Attorney General Robert G. Dreher of the Justice Department’s Environment and Natural Resources Division, U.S. Attorney Gregory K. Davis for the Southern District of Mississippi and Special Agent in Charge Maureen O’Mara of the EPA’s Criminal Program in Mississippi.
Miller was sentenced to serve 15 months, with nine months in prison and six months in home confinement, to be followed by one year of supervised release. Miller also was ordered to pay a $15,000 fine and to pay $19,246 in restitution. Miller was sentenced by Chief United States District Judge Louis Guirola Jr.
Miller pleaded guilty in December 2013 and admitted to having caused the excavation and filling of wetlands on a 1,710 acre parcel of undeveloped property in Hancock County, Miss., west of the intersection of Route 603 and Interstate 10. The charging document to which Miller pleaded guilty identified him as a part-owner of corporations that purchased and intended to develop the land.
According to the felony information, in 2001 when Miller and his companies acquired the property, he was informed by a wetland expert that as much as 80 percent of the land was federally protected wetland connected by streams and bayous to the Gulf of Mexico and as such could not be developed without a permit from the U.S. Army Corps of Engineers. Wetland permits typically require that developers protect and preserve other wetlands to compensate for those they are permitted to fill and destroy. In spite of additional notice he had received of the prohibition against filling and draining wetland without authorization, Miller hired excavation contractors to trench, drain and fill large portions of the property to lower the water table and thus to destroy the wetland that would otherwise be an impediment to commercial development.
In pleading guilty, Miller has acknowledged that he knowingly ditched, drained and filled wetlands at 10 locations on the Hancock County property without having obtained a permit from the U. S. Army Corps of Engineers.
Hancock County Land LLC (HCL), the principal owner of the land, previously entered a guilty plea to related charges. HCL pleaded guilty before Senior United States District Judge Walter J. Gex III of the Southern District of Mississippi, who also imposed sentence. The corporation agreed and was ordered to pay a total penalty of $1 million, or $500,000 for each of the two counts. The corporation also agreed and was ordered to perform community service by completing wetland restoration and preservation plans ordered by the court. These require the defendant to replant with appropriate native vegetation the wetland area it excavated and filled, donate approximately 272 acres of the southwest quadrant to the Land Trust for the Mississippi Coastal Plain to be preserved in perpetuity, to fund its management and maintenance, to pay $100,000 toward the litigation costs of the Gulf Restoration Network and to pay a civil penalty to the United States Treasury for the amount of $95,000.
The case was investigated by the EPA’s Criminal Investigation Division. The case was prosecuted by Senior Trial Attorney Jeremy K. Korzenik of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division and Assistant U.S. Attorney Gaines Cleveland of the U.S. Attorney’s Office for the Southern District of Mississippi.Real Estate Developer Sentenced to Jail for Filling Protected Mississippi WetlandsRead the Press Release
Gulfport, Miss -- William R. “Rusty” Miller, a real estate developer from Fairhope, Alabama, was sentenced today by U.S. District Judge Louis Guirola, Jr. to a fifteen-month sentence, with nine months of incarceration and six months home confinement, for the unpermitted filling of wetlands near Bay St. Louis, Mississippi, in violation of the Clean Water Act, announced Acting Assistant Attorney General Robert G. Dreher of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Gregory K. Davis of the Southern District of Mississippi. Miller was also ordered to pay a $15,000 fine, $19,246 in victim restitution, and to serve a one-year term of supervised release upon completion of his sentence.
Miller pled guilty in December, 2013, and admitted to having caused the excavation and filling of wetlands on a 1,710 acre parcel of undeveloped property in Hancock County, west of the intersection of Route 603 and Interstate 10. The charging document to which Miller pled guilty identified him as a part-owner of corporations that purchased and intended to develop the land. According to the felony information, in 2001, when Miller and his companies acquired the property, he was informed by a wetland expert that as much as 80 percent of the land was federally protected wetland connected by streams and bayous to the Gulf of Mexico and as such could not be developed without a permit from the U.S. Army Corps of Engineers. Wetland permits typically require that developers protect and preserve other wetlands to compensate for those they are permitted to fill and destroy. In spite of additional notice he received of the prohibition against filling and draining wetland without authorization, Miller hired excavation contractors to trench, drain, and fill large portions of the property to lower the water table and thus to destroy the wetland that would otherwise be an impediment to commercial development.
In pleading guilty, defendant Miller acknowledged that he knowingly ditched, drained and filled wetlands at 10 locations on the Hancock County property without having obtained a permit from the U. S. Army Corps of Engineers.
Hancock County Land, LLC (“HCL”), the principal owner of the land, previously entered a guilty plea to related charges. HCL pleaded guilty before Senior United States District Judge Walter J. Gex, III, who also imposed the sentence. The corporation agreed and was ordered to pay a total penalty of $1 million (or $500,000 for each of the two counts). The corporation also agreed and was ordered to perform community service by completing wetland restoration and preservation plans ordered by the Court. These require the defendant to replant with appropriate native vegetation the wetland area it excavated and filled, donate approximately 272 acres of the southwest quadrant to the Land Trust for the Mississippi Coastal Plain to be preserved in perpetuity to fund its management and maintenance, to pay $100,000 toward the litigation costs of the Gulf Restoration Network, and to pay a civil penalty to the United States Treasury of $95,000.
"Mississippi's coastal wetlands are an essential state resource,” said U.S. Attorney Davis. “They filter our water, provide us protection from storms, and they are the nurseries for fish and other wildlife. My office has demonstrated many times that we are committed to the protection of our environment. Individuals and companies who illegally develop our wetlands, who chose their own economic interest over the public's interest, will face prosecution and perhaps imprisonment, as the defendant has today."
"Wetlands play a critical role in maintaining a healthy environment," said Maureen O'Mara, Special Agent in Charge of EPA's criminal program in Mississippi. "Wetlands improve water quality, reduce flood damage and provide essential habitat for fish and wildlife. Once they are gone, it's rare to see them restored. Today's sentencing shows that those who illegally destroy these essential natural resources will be prosecuted and held accountable."
The case was prosecuted by Senior Trial Attorney Jeremy K. Korzenik of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division, and Assistant U.S. Attorney Gaines Cleveland of the U.S. Attorney’s Office for the Southern District of Mississippi. U.S. Attorney Davis praised the efforts of the U.S. Environmental Protection Agency Criminal Investigation Division for its diligent work in the investigation of this matter.
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Pollock Inmate Sentenced to 200 Months for Assaulting Prison EmployeeRead the Press Release
ALEXANDRIA, La. –United States Attorney Stephanie A. Finley announced today that Michael Phillip Bourque, 57, originally of Cheverly, Md., was sentenced by U.S. District Judge Dee D. Drell to an additional 200 months in prison and three years of supervised release for assaulting a correctional officer.
According to evidence presented at the guilty plea on January 3, 2014, Bourque attacked an officer at the U.S. Penitentiary in Pollock, La., on June 15, 2013 with a homemade sharpened shank. Video surveillance revealed that after the officer walked to a door, and as he began unlocking it, Bourque attacked him from behind. The officer fell to the ground, and Bourque attacked the officer’s upper body. After Bourque walked off, the officer tried to sit up. Bourque returned and began stabbing the guard’s legs. The officer was later sent to a hospital where he was treated for life threatening stab wounds. Bourque is serving a 44-year prison sentence for charges related to a 2002 bank robbery in Myrtle Beach, S.C.
The FBI and the Federal Bureau of Prisons conducted the investigation. Assistant U.S. Attorney Joseph G. Jarzabek prosecuted the case.Pikeville Doctor Admits to Conspiracy to Misbranding Prescription DrugsRead the Press Release
PIKEVILLE, KY - A Pikeville doctor admitted in federal court that he allowed a pharmacy access to his prescription drug samples that were supposed to go to his patients.
Thad Manning, 48, pleaded guilty on Wednesday to conspiracy to misbranding drugs. Manning agreed to forfeit $250,000 which represents the proceeds he received as a result of the conspiracy. Manning will also enter into drug rehabilitation for an addiction to hydrocodone.
Manning admitted that over the course of several years he received numerous prescription drug samples from various pharmaceutical companies. In the written agreement between Manning and the pharmaceutical companies, Manning pledged to provide the samples to patients. Instead, Manning allowed Marrowbone Clinic Pharmacy (later known as Marrowbone Hometown Pharmacy) to take the prescription samples and co-mingle them with other prescription drugs already in stock bottles. These co-mingled drugs were ultimately dispensed to the pharmacy’s customers.
Because the pharmacy removed the sample medications from their original packaging and mixed them with medications from stock bottles, the drug’s identifying information and expiration information on the stock bottle became inaccurate and thus misbranded. This made it impossible for the consumer to know whether or not their particular medication had been recalled by the Food and Drug Administration or the pharmaceutical companies.
Manning was the last of several individuals to be charged in 2012 as a result of an investigation conducted by the Food and Drug Administration’s Office of Criminal Investigations, the FBI, the Kentucky Board of Pharmacy, the Kentucky Office of the Inspector General and the Kentucky State Police. The individuals that were indicted have been convicted of the charges including a Houston, Texas doctor who wrote unlawful prescriptions for patients from Pike County; six defendants who were distributing narcotics obtained from Marrowbone Clinic Pharmacy; a pharmacy employee who billed insurance carriers for prescriptions that were never filled; the Marrowbone Hometown Pharmacy Corporation for the selling of prescription drug samples; and the pharmacy manager who was convicted of narcotics trafficking and conspiracy to sell prescription drug samples. Pikeville Pharmacist Ronald Huffman was named the 2012 indictment but committed suicide around the time the charges were announced.
The U.S. Attorney’s Office was represented in this case by Assistant U.S. Attorney Lee Gentry.
Manning will be sentenced in July 2014. He faces a maximum of one year in prison and a $100,000 fine. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal statutes before imposing a sentence.
Pennsylvania Man Who Sold Counterfeit Military Goods Sentenced to 21 Months in PrisonRead the Press Release
Imported Counterfeit Merchandise from China
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Hao Yang, age 25, of Bloomsburg, Pennsylvania, today to 21 months in prison for conspiring to traffic in counterfeit goods and counterfeit military goods. Judge Motz also entered an order that Yang forfeit five bank accounts worth over $59,000, a 2010 Acura purchased with proceeds of the crime, and counterfeit computer software, DVDs, sports jerseys and other items valued at approximately $280,720.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).“The defendant imported counterfeit goods from China and fraudulently sold them as legitimate merchandise,” said U.S. Attorney Rod J. Rosenstein. “Counterfeit integrated circuits from China were falsely represented to be legitimate American-made parts.”
“This investigation, conducted by HSI special agents in Baltimore, Tampa and Harrisburg, Pa., identified Chinese national Hao Yang as a co-conspirator in an overall scheme to traffic in counterfeit goods to include military grade integrated circuits and defense goods into the United States from China,” said HSI Baltimore Special Agent in Charge William Winter. “These counterfeit military goods pose a threat to our national security as they could end up in the wrong hands and legitimate manufacturing and high technology businesses may believe they are receiving authentic goods. HSI and our partners at U.S. Customs and Border Protection will continue to protect the American public and America's warfighters from the introduction of counterfeit, non-conforming, and substandard materials and goods from entering the United States.”
According to his plea agreement, from 2010 until his arrest on June 19, 2013, Yang and his co-conspirators created and operated several companies in Maryland, Pennsylvania, and elsewhere, including MS Technologies and Aone Electronics in Baltimore; Abest Technologies in China; and Arrcord Group, SMC Group and Smooth LLC. The latter three companies were operated by Yang at his residence in Bloomsburg. Yang used his residence to warehouse the counterfeit goods, including counterfeit military goods, sent to him by his co-conspirators in China. He then shipped items to buyers in the United States based on the order information provided by his co-conspirators. Yang maintained numerous bank accounts to deposit his illegal commissions and make payments associated with his counterfeit activities. He also used the commissions he received from his co-conspirators to pay for living expenses and other purchases, including a 2010 Acura TSX sedan.Yang received counterfeit circuits, a number of which were military-grade, from a co-conspirator in China. This co-conspirator sold, or attempted to sell, the circuits to individuals, companies and government agencies in the United States. Yang then distributed the counterfeit circuits, using his domestic businesses, to the buyers in the United States, sometimes in repackaged form. The co-conspirator paid Yang a commission of $500 per month for his distribution services. Yang and his co-conspirator formed Aarcord Group to conceal the fact that the counterfeit circuits were being imported from China. The counterfeit circuits that Yang redistributed could likely have caused serious bodily injury or impaired military operations, personnel or national security.
Yang also obtained other counterfeit goods, including computer software, DVDs, and sports jerseys, from other co-conspirators in China and Hong Kong, which he then distributed in the United States. Yang received commissions from these co-conspirators of $1,000 to $2,000 per month for his distribution services. Between March 2011 and April 2013, Yang used several false identities to receive hundreds of shipments from China and Hong Kong, including shipments involving integrated circuits.
United States Attorney Rod J. Rosenstein praised HSI Baltimore for its work in the investigation and thanked Assistant U.S. Attorney Christine Manuelian, who prosecuted the case.
Pennsylvania Company Pleads Guilty to Clean Air Act ChargeRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul announced today that Lycoming Construction Services, LLC, a Pennsylvania Limited Liability Company located in Williamsport, Pennsylvania, pleaded guilty before U.S. District Court Chief William M. Skretny, to violating the Clean Air Act. The charge carries a maximum penalty of a fine of $500,000, a term of probation of five years, or both.
Assistant U. S. Attorney Aaron J. Mango, who is handling the case, stated that from January 2012 to November 2013, the company was involved in the demolition of the Dahlstrom industrial complex, located at 443-499 Buffalo Street in Jamestown, N.Y. This project involved the demolition of a cluster of condemned buildings on either side of the Chadakoin River. Prior to the start of the demolition, a survey identified that some of the buildings contained asbestos. In February 2012, employees working on behalf of the defendant entered one of the condemned buildings and removed regulated asbestos containing material without adequately wetting it, in violation of the Clean Air Act asbestos work practice standards.
Sentencing is scheduled for August 13, 2014, at 2:00 p.m. before Judge Skretny.
The plea is the culmination of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency - Criminal Investigation Division, under the direction of Acting Special Agent-In-Charge, Vernesa Jones-Allen; Special Agents of the U.S. Coast Guard Investigative Service, under the direction of Special Agent-In-Charge Neal R. Marzloff; and Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain David Bennett. Additional assistance was provided by the New York State Department of Labor, Asbestos Control Bureau.Pawan Kumar Jain Arrested on Charges of Unlawfully Dispensing Prescription Drugs and Health Care FraudRead the Press Release
ALBUQUERQUE – A federal grand jury has returned an indictment charging Pawan Kumar Jain, 61, of Las Cruces, N.M., with the unlawful dispensing of opioid pain medication and health care fraud charges, announced by Acting U.S. Attorney Damon P. Martinez, Special Agent in Charge Joseph M. Arabit of the DEA’s El Paso Field Division and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division.
Jain was arrested without incidence earlier today by the DEA and FBI. He is scheduled to make his initial appearance in federal court in Las Cruces at 8:30 a.m. tomorrow.
The 111-count indictment, which was publicly posted following Jain’s arrest, charges Jain with 61 counts of unlawfully dispensing controlled substances and 50 counts of health care fraud. According to the indictment, Jain allegedly committed the offenses charged between April 2009 and June 2010, in Doña Ana County, N.M. At the time, Jain was a licensed physician with a neurology subspecialty who operated a pain management medical practice in Las Cruces. Jain’s medical license was suspended in June 2012 and subsequently revoked in Dec. 2012 by the New Mexico Medical Board.
Each of the 61 dispensing charges alleges that Jain unlawfully dispensed prescription painkillers, primarily Oxycodone and methadone, to patients outside the usual course of medical practice and without a legitimate medical purpose. The maximum statutory penalty for a conviction on each of the 61 dispensing charges is 20 years in prison and a $1,000,000 fine.
The 50 health care fraud charges allege that Jain engaged in a scheme to defraud two health care benefit programs, Medicare and Medicaid, by submitting claims for payment for prescription medications he dispensed to patients outside the usual course of medical practice and without legitimate medical purpose. The maximum statutory penalty for a conviction on each of the health care fraud charges is ten years in prison and a $250,000 fine.
Four counts in the indictment, Counts 1 through 4, expose Jain to enhanced sentencing because the criminal conduct charge allegedly resulted in the deaths of two patients. Counts 1 and 2 of the indictment allege that Jain’s unlawful dispensing of prescription painkillers and fraudulent conduct resulted in the death of a patient identified by the initials “M.E.B.” According to the indictment, Jain dispensed 540 tablets (40 mg) of Oxycodone and 405 tablets (10 mg) of methadone to M.E.B. between April 22, 2009 and Sept. 29, 2009. Counts 3 and 4 allege that Jain’s unlawful dispensing of prescription painkillers and fraudulent conduct resulted in the death of a patient identified by the initials “N.D.”
The statutory penalty for a conviction on each of Counts 1 and 3, which allege the unlawful dispensing of a controlled substance resulting in death, is a mandatory minimum 20 years in prison and a maximum of life in prison. The statutory penalty for a conviction on each of Counts 2 and 4, which allege health care fraud resulting in death, is life imprisonment.
In announcing the indictment, DEA Special Agent in Charge Joseph M. Arabit said, “The diversion and abuse of prescription opioids, such as hydrocodone and oxycodone, threatens the health and safety of our communities and remains a serious concern for law enforcement. It is particularly concerning when a doctor, who is entrusted with the care and well-being of his patients, contributes to this problem by prescribing addictive pain killers in an unprofessional manner absent a legitimate medical purpose. By engaging in this illegal and irresponsible behavior, a medical practitioner violates the trust of those he has a duty to serve, and, most sadly, his actions can result in their death.”
“Health care fraud and unlawfully dispensing prescription drugs cost consumers, taxpayers and insurance companies billions of dollars,” said FBI Special Agent in Charge Carol K.O. Lee. “Sometimes, as this case alleges, these crimes can even kill. The FBI is proud to work alongside the Drug Enforcement Administration and the U.S. Attorney's Office to make sure physicians who attempt to defraud the government, sometimes with fatal results, are held accountable.”
This case was investigated by the DEA’s Tactical Diversion Team in El Paso, Texas and the FBI’s Healthcare Fraud Unit with assistance from the New Mexico Medical Board and the New Mexico Board of Pharmacy. The case is being prosecuted by Assistant U.S. Attorneys Sarah M. Davenport and Richard C. Williams of the U.S. Attorney’s Las Cruces Branch Office.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
Charges in indictments are merely accusations, and defendants are presumed innocent unless proven guilty.
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Jain Indictment
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Owner, Manager, and Hospice Company Indicted for Committing Medicare FraudRead the Press Release
Oklahoma City, Oklahoma – A federal grand jury in Oklahoma City has returned an indictment charging PAULA KLUDING, 38, from Chandler, Oklahoma, PATRICIA CARTER, 42, from Tecumseh, Oklahoma, and PRAIRIE VIEW HOSPICE, INC. ("Prairie View Hospice"), an Oklahoma corporation located in Chandler, Oklahoma, with 39 separate counts relating to Medicare fraud, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to the indictment, Prairie View Hospice was in business to provide hospice care to Medicare beneficiaries. Hospice care consists of providing health care, medication, medical equipment, and other goods and services to terminally ill patients. Kluding owned Prairie View Hospice and Carter was the general manager. The indictment alleges that from July of 2010 through July of 2013, the defendants conspired to conceal the true medical condition of Prairie View Hospice’s patients and the true quality and quantity of health care services they were receiving in order to "pass" a Medicare audit and to fraudulently obtain money from Medicare. Specifically, it is alleged, among other things, that certain medical documents were falsified to make it appear that nurses had visited patients or conducted necessary assessments when such visits and assessments had not, in fact, been made. Also, nursing notes were falsified to make it appear that patients were in worse health than they actually were in order to justify to Medicare the patient’s continued hospice care. It is alleged that Prairie View Hospice, acting through Kluding and Carter, sent the falsified documents to a Medicare subcontractor in response to requests to audit patient files and claims for Medicare reimbursement. The indictment charges the defendants with conspiracy, obstruction of a federal audit, and making false statements in health care matter.
If convicted, the individual defendants face up to 5 years imprisonment and a fine of $250,000 on each count. The indictment also seeks forfeiture of all property and proceeds obtained by the defendants from the alleged criminal acts. Reference is made to the indictment for further information. The defendants are all presumed innocent unless and until proven guilty.
This case is the result of an investigation by the U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Amanda Maxfield Green.
Over 65 Charged in Largest Heroin Trafficking Investigation in Minnesota HistoryRead the Press Release
MINNEAPOLIS— Andrew Luger, United States Attorney for the District of Minnesota, and Jack Riley, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration (“DEA”), announced today that over 65 heroin distributors were arrested and/or charged with state and federal drug trafficking crimes throughout the State of Minnesota. The charges are part of a joint local, state and federal drug trafficking investigation, named “Operation Exile.”
The investigation involved agents and officers from the DEA, FBI, ATF, ICE, U.S. Marshals Service, Bureau of Criminal Apprehension as well as the Sheriff’s and County Attorney’s Offices from Hennepin, Ramsey, Dakota, Anoka, Washington, St. Louis and Olmsted counties. The local police departments in all seven counties were involved as well. In addition to the over 65 arrests, agents and officers conducted dozens of search warrants at locations throughout the state to gather evidence in support of the heroin trafficking prosecutions that will follow today’s events.
Mr. Luger praised the DEA for bringing local, state and federal law enforcement together to coordinate efforts to combat heroin trafficking. “In recent years, high purity inexpensive heroin in powder form has been imported to Minnesota in large quantities. Operation Exile is a coordinated law enforcement campaign to investigate and prosecute heroin traffickers at all levels in Minnesota. Our goal is to make it as difficult as possible for drug cartels to bring heroin to our state.”
The United States Attorney’s Office has been working with law enforcement at the local, state and federal levels to prepare for Operation Exile. Federal and State prosecutors will determine over the coming days which jurisdiction will prosecute the approximately 65 traffickers charged today.
Luger noted how heroin abuse has become a significant problem in a number of states around the country. Luger stated that law enforcement is determined to prevent Minnesota from becoming the next state to face such a crisis.
“Our goal is to tackle the problem of heroin addiction before heroin traffickers become embedded in our community. Operation Exile is an important step in making Minnesota off limits to large scale heroin distributors,” said Luger.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Oregon Man Sentenced to Prison for Methamphetamine ChargesRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula on March 28, 2014 before U.S. District Judge Donald Molloy, SHANNON LEROY RAMSLAND, 34, of Aloha, Oregon was sentenced to 188 months imprisonment and 5 years supervised release.
The sentence is in connection with Ramsland's December 2013 guilty plea to possession with intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Bryan Whittaker, the government stated that on or about May 29, 2013, a Helena Police Detective was at the Town Pump gas station in East Helena, Montana when he observed a white Ford F350 truck in the parking lot. At the time, the detective was driving an unmarked vehicle. The detective observed who he believed to be Ramsland who had an active warrant for his arrest from Oregon. The detective called in the license plate number on the truck and confirmed that it was Ramsland.
The detective continued to watch Ramsland and the truck as it left the gas station and headed west on Highway 12 toward Helena. The detective called for backup because previous interaction with law enforcement indicated Ramsland carried a gun with him and was known to go to lengths to evade apprehension by authorities.
The detective followed Ramsland's truck while he was waiting for backup. At one point he lost sight of the truck, but reacquired it as he observed it turning on Rimini Road. Two other deputies arrived and then attempted to make a traffic stop. The truck then began heading westbound on Highway 12 at a high rate of speed reaching 80 MPH. Ramsland was swerving back and forth between the two lanes as he headed up MacDonald Pass. He then suddenly turned in to the scenic turnout, turned around, and headed back down the pass traveling eastbound. He again accelerated to speeds over 80 MPH. Deputies deployed a spike strip, but Ramsland drove into the opposite lane of traffic to avoid hitting the spike strip. As he approached the bottom of the pass, again near Rimini Road, numerous law enforcement vehicles were at this intersection. Ramsland almost caused a head on collision with a patrol car as he turned off Highway 12 and up Rimini Road. Rimini Road is a dirt/gravel road with a speed limit of 35 MPH. Ramsland accelerated to 80 MPH. As he reached the Minnehaha turnoff, he slowed slightly to attempt to make the turn, but he lost control of his truck and crashed into the bridge guardrail.
Deputies blocked the truck in and ordered Ramsland out of the truck. He complied as was taken into custody.
A search warrant was issued in the Montana First Judicial District Court to be executed on Ramsland's 2000 White Ford F-350 being driven by Ramsland. The following day, agents searched the truck. Inside the truck were several bags on the rear driver's side passenger seat. Inside one of these bags was a green Tupperware style container and another zippered pouch. Inside of the zippered pouch was a nearly full large sized zip-lock style bag of a crystallized substance. There was also a second zip-lock bag with a single piece of the crystallized substance. Furthermore, there was a silver and purple colored AWS brand digital scale (with crystallized residue). Inside the Tupperware container was a third zip-lock bag with a much smaller amount of the crystallized substance, an empty zip-lock bag, a glass pipe with residue (commonly used to smoke meth) and various packaged cold medicines.