Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 26 February 2014
Evans Sentenced to 84 Months in Federal Prison after Pleading Guilty to Armed Bank RobberyRead the Press Release
SALT LAKE CITY - David Warren Evans, age 44, of Magna, Utah, convicted of a September 2013 armed robbery of a Wells Fargo Bank located at 1255 East Brickyard Road in Salt Lake City, will serve 84 months in federal prison. U.S. District Judge Tena Campbell imposed the sentence Wednesday afternoon.
Judge Campbell also ordered Evans to be on supervised release for 60 months after he concludes his federal prison sentence. He also must pay $1,759 in restitution to Wells Fargo Bank.
In a December plea agreement, Evans admitted that he entered the bank wearing a hooded black sweatshirt, black sunglasses, and a red bandana over his head. He handed the teller a note demanding cash. He held what appeared to be a black handgun so it was visible to the teller during the robbery. The teller complied with his demands.
Evans also admitted he robbed a Wells Fargo Bank located at 4740 South 900 East in Murray in September 2013. He approached the teller and handed her a note that read: “This is a robbery, don’t make it a murder.” The teller complied with his demands.
In addition to other evidence, still photos from the robberies were released to the media and members of the public and law enforcement officers identified Evans as robbery suspect.
The case was investigated by the Utah Safe Streets Task Force, the FBI and Salt Lake City and Murray City Police Departments. It was prosecuted by the U.S. Attorney’s Office in Salt Lake City.
Escrow Officer Guilty in North Texas Mortgage Fraud ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsFinal defendant’s guilty plea brings closure to nearly $4 million fraud
SHERMAN, Texas – A 35-year-old Edinburg, Texas woman has pleaded guilty to federal charges in connection with a mortgage fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Lacie Devine pleaded guilty to conspiracy to commit mail fraud today before U.S. Magistrate Judge Amos L. Mazzant. She is the remaining defendant associated with five others in the same conspiracy to plead guilty to the mortgage fraud scheme.
According to information presented in court, from March 2008 through February 2010, Devine, an escrow officer at National Escrow & Title, LCC, located on north Dallas Parkway in Dallas, conspired with others, including the five individuals identified below, to defraud lending institutions by submitting false documentation in support of mortgage applications on 28 property transactions located in the Dallas/Fort Worth Metroplex. Specifically, Devine created fraudulent HUD-1 documents for each transaction that falsely stated the source of the down payments and concealed the true nature of the loan fund disbursements from the lending institutions. Devine’s criminal conduct in the scheme resulted in a loss to lending institutions of approximately $3,718,702.28.
Devine was indicted by a federal grand jury on June 13, 2013 and charged with federal violations. The five co-conspirators, all charged in separate indictments, have also pleaded guilty and been sentenced for their roles in the mortgage fraud conspiracy:
- Roslyn Long, 45-year-old loan officer from Plano, Texas, sentenced to 97 months in federal prison and $3,492,011.79 in restitution;
- Michael Ross, 36-year-old loan officer and coordinator from Dallas, Texas, sentenced to 63 months in federal prison and $3,337,930.60 in restitution;
- Curtis Callier, 33-year-old recruiter from Desoto, Texas, sentenced to 30 months in federal prison and restitution in the amount of $691,543.22;
- Ronzell Mitchell, 37-year-old recruiter from Stroudsburg, Pennsylvania, sentenced to 46 months in federal prison and $1,408,402.96 in restitution; and
- Christi Wyatt, 42-year-old recruiter from Desoto, Texas, sentenced to 37 months in federal prison and restitution in the amount of $1,032,650.17.
Devine faces up to 20 years in federal prison at sentencing. A sentencing date has not been set.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force.
President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case was investigated by the Federal Bureau of Investigation, the Department of Housing and Urban Development, Office of Inspector General, the Federal Housing Finance Agency, Office of Inspector General, and the Texas Department of Insurance. These cases are being prosecuted by Assistant U.S. Attorneys Christopher A. Eason and J. Andrew Williams.
####El Ranchito Corporation Pleads Guilty to Serving Adulterated Pork to CustomersRead the Press Release
Natchez, Miss - El Ranchito Corporation, of Tickfaw, LA, entered a guilty plea and was sentenced on February 25, 2014 before U.S. Senior District Court Judge David C. Bramlette III for transporting adulterated meat, announced U.S. Attorney Gregory K. Davis. El Ranchito Corporation was fined $6,000 dollars and placed on one year probation.
The investigation in this case revealed that Joel Cervantes, who was previously convicted of inhumanely slaughtering animals, was the President of El Ranchito Corporation. El Ranchito is a Mexican Restaurant located in Tickfaw, Louisiana and incorporated in the State of Louisiana. Cervantes owned land in Magnolia, Mississippi near Highway 51 where he kept swine for the purpose of supplying El Ranchito Corporation with pork. Cervantes routinely butchered swine in unsanitary conditions, and then transported the meat from Magnolia, Mississippi to El Ranchito restaurant in Tickfaw, LA. The meat was then sold to the customers of El Ranchito. In all approximately 6,771 pounds of adulterated pork was sold to customers of El Ranchito.
This case was investigated by the United States Department of Agriculture Food Safety and Inspection Service and prosecuted by Assistant U.S. Attorney Patrick Lemon.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.
Doctor Admits Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – An internist with a practice in Montclair, N.J., admitted today accepting bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, N.J., its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Charles Goldberg, 60, of West Orange, N.J., pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of accepting bribes.
Including Goldberg, 23 people – 12 of them physicians– have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies.According to documents filed in these and related cases and statements made in court:
Goldberg admitted accepting bribes of $1,800 per month through a sham lease agreement with BLS, which identified the waiting room, bathroom and one examination room in Goldberg’s office as being leased.The bribery count to which Goldberg pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. He will be sentenced on a date to be determined. As part of his guilty plea, Goldberg agreed to forfeit $58,000, representing the bribes he received from BLS.
The BLS investigation has recovered more than $7 million to date through forfeiture.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell; IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty pleas.
The government is represented by Senior Litigation Counsel Andrew Leven, Assistant U.S. Attorney Joseph Minish, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $535 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
14-068Defense counsel: A. Ross Pearlson Esq., West Orange, N.J.
Goldberg InformationDepartments of Justice and Health and Human Services Announce Record-Breaking Recoveries Resulting from Joint Efforts to Combat Health Care FraudRead the Press Release
Attorney General Eric Holder and HHS Secretary Kathleen Sebelius today released the annual Health Care Fraud and Abuse Control (HCFAC) Program report showing that for every dollar spent on health care-related fraud and abuse investigations through this and other programs in the last three years, the government recovered $8.10. This is the highest three-year average return on investment in the 17-year history of the HCFAC Program.
The government’s health care fraud prevention and enforcement efforts recovered a record-breaking $4.3 billion in taxpayer dollars in Fiscal Year (FY) 2013, up from $4.2 billion in FY 2012, from individuals and companies who attempted to defraud federal health programs serving seniors or who sought payments from taxpayers to which they were not entitled. Over the last five years, the administration’s enforcement efforts have recovered $19.2 billion, up from $9.4 billion over the prior five-year period. Since the inception of the program in1997, the HCFAC Program has returned more than $25.9 billion to the Medicare Trust Funds and treasury.
These recoveries, released today in the annual HCFAC Program report, demonstrate President Obama’s commitment to making the elimination of fraud, waste and abuse, particularly in health care, a top priority for the administration. This is the fifth consecutive year that the program has increased recoveries over the past year, climbing from $2 billion in FY 2008 to over $4 billion every year since FY 2011.
The success of this joint Department of Justice and HHS effort was made possible in part by the Health Care Fraud Prevention and Enforcement Action Team (HEAT), created in 2009 to prevent fraud, waste and abuse in Medicare and Medicaid and to crack down on individuals and entities that are abusing the system and costing American taxpayers billions of dollars.
“With these extraordinary recoveries, and the record-high rate of return on investment we’ve achieved on our comprehensive health care fraud enforcement efforts, we’re sending a strong message to those who would take advantage of their fellow citizens, target vulnerable populations, and commit fraud on federal health care programs,” said Attorney General Eric Holder. “Thanks to initiatives like HEAT, our work to combat fraud has never been more cooperative or more effective. And our unprecedented commitment to holding criminals accountable, and securing remarkable results for American taxpayers, is paying dividends.”
“These impressive recoveries for the American taxpayer are just one aspect of the comprehensive anti-fraud strategy we have implemented since the passage of the Affordable Care Act,” said HHS Secretary Sebelius. “We’ve cracked down on tens of thousands health care providers suspected of Medicare fraud. New enrollment screening techniques are proving effective in preventing high risk providers from getting into the system, and the new computer analytics system that detects and stops fraudulent billing before money ever goes out the door is accomplishing positive results – all of which are adding to savings for the Medicare Trust Fund.”The new authorities under the Affordable Care Act granted to HHS and the Centers for Medicare & Medicaid Services (CMS) were instrumental in clamping down on fraudulent activity in health care. In FY 2013, CMS announced the first use of its temporary moratoria authority granted by the Affordable Care Act. The action stopped enrollment of new home health or ambulance enrollments in three fraud hot spots around the country, allowing CMS and its law enforcement partners to remove bad actors from the program while blocking provider entry or re-entry into these already over-supplied markets.
The Justice Department and HHS have improved their coordination through HEAT and are currently operating Medicare Fraud Strike Force teams in nine areas across the country. The strike force teams use advanced data analysis techniques to identify high-billing levels in health care fraud hot spots so that interagency teams can target emerging or migrating schemes as well as chronic fraud by criminals masquerading as health care providers or suppliers. The Justice Department’s enforcement of the civil False Claims Act and the Federal Food, Drug and Cosmetic Act has produced similar record-breaking results. These combined efforts coordinated under HEAT have expanded local partnerships and helped educate Medicare beneficiaries about how to protect themselves against fraud.
In Fiscal Year 2013, the strike force secured records in the number of cases filed (137), individuals charged (345), guilty pleas secured (234) and jury trial convictions (46). Beyond these remarkable results, the defendants who were charged and sentenced are facing significant time in prison – an average of 52 months in prison for those sentenced in FY 2013, and an average of 47 months in prison for those sentenced since 2007.
In FY 2013, the Justice Department opened 1,013 new criminal health care fraud investigations involving 1,910 potential defendants, and a total of 718 defendants were convicted of health care fraud-related crimes during the year. The department also opened 1,083 new civil health care fraud investigations.
The strike force coordinated a takedown in May 2013 that resulted in charges by eight strike force cities against 89 individuals, including doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $223 million in false billings. As a part of the May 2013 takedown, HHS also suspended or took other administrative action against 18 providers using authority under the health care law to suspend payments until an investigation is complete.
In March 2011, CMS began an ambitious project to revalidate all 1.5 million Medicare enrolled providers and suppliers under the Affordable Care Act screening requirements. As of September 2013, more than 535,000 providers were subject to the new screening requirements and over 225,000 lost the ability to bill Medicare due to the Affordable Care Act requirements and other proactive initiatives. Since the Affordable Care Act, CMS has also revoked 14,663 providers and suppliers’ ability to bill the Medicare program. These providers were removed from the program because they had felony convictions, were not operational at the address CMS had on file, or were not in compliance with CMS rules.
HHS and the Justice Department are leading historic efforts with the private sector to bring innovation to the fight against health care fraud. In addition to real-time data and information exchanges with the private sector, CMS’ Program Integrity Command Center worked with the HHS Office of the Inspector General and the FBI to conduct 93 missions to detect, investigate, and reduce improper payments in FY 2013.
From May 2013 through August 2013, CMS led an outreach and education campaign targeted to specific communities where Medicare fraud is more prevalent. This multimedia campaign included national television, radio, and print outreach and resulted in an increased awareness of how to detect and report Medicare fraud.
To read today’s report visit http://oig.hhs.gov/publications/docs/hcfac/FY2013-hcfac.pdf
For previous years’ reports visit https://oig.hhs.gov/reports-and-publications/hcfac/index.asp
For more information on the joint DOJ-HHS Strike Force activities, visit: www.StopMedicareFraud.gov/.
Dallas Man Faces up to Life in Federal Prison After Pleading Guilty to Sex Trafficking of ChildrenRead the Press Release
DALLAS — Keith Williams, aka “Chucky Blood,” 24, of Dallas, appeared in federal court yesterday and pleaded guilty, before U.S. Magistrate Judge Paul D. Stickney, to one count of sex trafficking of children. He faces a maximum statutory penalty of not less than 10 years and up to life in federal prison and a $250,000 fine. He is scheduled to be sentenced by U.S. District Judge David C. Godbey on June 9, 2014. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Williams’ co-defendant in the case, Erin Patton, 25, also of Dallas, is set for trial for June 2, 2014, on an indictment charging her with the same offense. Both Williams and Patton are in custody.
According to documents filed in the case, in September 2012, after she ran away from home, 14-year-old “Jane Doe” met Erin Patton. Patton let Jane Doe stay with her, and Patton facilitated Jane Doe’s engaging in commercial sex acts by driving her to locations where the acts occurred and providing her a cell phone so she could post her services on “Mocospace” and Backpage.com. Jane Doe gave Patton money she earned from engaging in the sex acts.
Again, in November 2012, after she again ran away from home, Jane Doe contacted Patton. This time, both Patton and Williams picked up Jane Doe and posted her availability to engage in commercial sex acts on Backpage.com. While Williams went to serve a jail sentence shortly thereafter, Patton continued facilitating Jane Doe’s commercial sex acts. Jane Doe eventually left.
In April 2013, Jane Doe again contacted Patton and told her she was still in school, but wanted to leave and wanted Patton to pick her up. Patton and Williams agreed to let Jane Doe stay with them, but they told her she was going to have to engage in commercial sex acts, as she had done in the past, to pay for her expenses. Williams and/or Patton drove Jane Doe to meet with customers and Jane Doe gave all the money she earned to Williams and Patton.
On May 4, 2013, officers with the Dallas Police Department (DPD) encountered now 15-year-old Jane Doe, in a car parked in an area known for prostitution. Williams came by shortly thereafter. He admitted knowing she was 15, driving her to meet with customer and collecting proceeds from her “dates.”
DPD led the investigation, with assistance from the FBI. Assistant U.S. Attorney Cara Foos Pierce is prosecuting.
Criminal Immigration Charges Brought Against Two Illegal AliensRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigrations and Customs Enforcement, announced today that charges have been brought against the following:
Martin Perez-Gomez, age 30, a native and citizen of Mexico, in the United States illegally was charged in a one-count indictment by a federal grand jury in Harrisburg today. The indictment alleges that Perez-Gomez, an alien who has previously been arrested and deported from the United States in June 2008, did knowingly and unlawfully reenter the United States and was apprehended in Adams County, Pennsylvania.
If convicted, Gomez-Perez faces a maximum sentence of up to two years’ imprisonment and a $250,000 fine.
Dario Cruz-Reyes, age 35, a native and citizen of Mexico, in the United States illegally was charged in a one-count indictment by a federal grand jury in Harrisburg today. The indictment alleges that Cruz-Reyes, an alien who has previously been arrested and deported from the United States in August 2009, did knowingly and unlawfully reenter the United States and was apprehended in Cumberland County, Pennsylvania.
If convicted, Cruz-Reyes faces a maximum sentence of up to two years’ imprisonment and a $250,000 fine.
The investigations were conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement and are being prosecuted by Special Assistant United States Attorney Brian G. McDonnell.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offenses are not an accurate indicator of the potential sentence for a specific defendant.
Connecticut Ponzi Scheme Operator Who Stole $27 Million Sentenced to 25 Years in Federal PrisonRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that GREGORY P. LOLES, 54, formerly of Easton, Conn., was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 300 months of imprisonment, followed by three years of supervised release, for defrauding investors, including a Connecticut church, of approximately $27 million.
“For nearly a decade, this defendant abused the trust of friends and clients, and stole millions from his own church.” stated U.S. Attorney Daly. “He engaged in a carefully calculated fraud that included the use of sham companies, phony documents and endless lies to investors. His scheme was for his own material gain, including the purchase of an extravagant home and the funding of a professional car racing team. This long sentence is clearly appropriate as the defendant preyed upon and devastated innocent victims who had placed their trust in him.”
“Today’s sentence will hopefully deter investment advisors and other financial services professionals from defrauding their investors,” stated Special Agent in Charge Ferrick. “For years, the defendant systematically swindled numerous victims, including friends and fellow parishioners, of approximately $27 million dollars. While most of the details of his heartless frauds have been uncovered, the depth of the destruction of trust and faith may never be fully revealed. Unfortunately, this is an all too common occurrence and another reminder to investors to do your due diligence before investing with anyone.”
According to court documents and statements made in court, LOLES owned Apeiron Capital Management, Inc., which was an investment adviser and broker dealer registered with the U.S. Securities and Exchange Commission from 1995 through 1998, at which point the registrations were cancelled. However, LOLES continued to operate Apeiron as an unregistered investment adviser and falsely represented Apeiron to be a registered investment management firm. LOLES also was the majority owner and managing member of Farnbacher Loles Motor Sports, Farnbacher Loles Racing, Farnbacher Loles Street Performance, and various other Farnbacher Loles businesses, which were based in Danbury, and were engaged in the business of professional race team operations and servicing high-performance automobiles.
For nearly a decade, LOLES falsely represented to numerous victim-investors, including friends and fellow parishioners of a church in Orange, Conn., that he would act as their investment adviser and invest their funds through Apeiron in various securities including in what he described as “Arbitrage Bonds,” which LOLES represented would provide investors with a safe and steady return. LOLES also was selected to serve on the board of the church’s endowment fund and was entrusted to manage the church’s investment funds, including the endowment fund and the building fund, by investing in, among other things, Arbitrage Bonds. However, the Arbitrage Bonds did not exist.
Instead of investing funds as promised, LOLES used the money to fund his Farnbacher Loles operation, to pay personal expenses, and to purchase a large home with a pool, tennis court and multi-car garage for his sports cars. In order to keep his scheme from being detected, LOLES provided investors with fraudulent account statements and also made periodic “lulling” payments to certain investors using a portion of other victim-investors’ funds.
Through this scheme, LOLES stole approximately $27 million from more than 50 victims, including approximately $2 million from his church and approximately $14 million from a single family in Greece. LOLES also defrauded clients of Farnbacher Loles.
Some of the individual investors lost their life savings, and provided LOLES with funds that had previously been invested in IRAs, 401(k)s, or were proceeds of life insurance payments.
LOLES has been detained since his arrest on December 15, 2009. On July 26, 2011, he pleaded guilty to one count of mail fraud, one count of wire fraud, one count of securities fraud and one count of money laundering.
Judge Thompson found that LOLES attempted to obstruct the investigation of this matter, after he was arrested, by making false statements to the Federal Bureau of Investigation in relation to the $14 million he stole from the family in Greece. Judge Thompson also found that LOLES willfully attempted to mislead the court and committed perjury while testifying during multiple pre-sentencing hearings.
This matter was investigated by the Federal Bureau of Investigation, with the assistance of the U.S. Securities and Exchange Commission, Internal Revenue Service – Criminal Investigation and the Social Security Administration, Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Michael S. McGarry.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Collegeville Man Charged in Child Exploitation CaseRead the Press Release
Matthew Krapf, 43, of Collegeville, PA, is charged by Indictment, unsealed today, with numerous counts of child exploitation, announced United States Attorney Zane David Memeger. Krapf is charged with 10 counts, each, of using or inducing a child to pose for child pornography, use of an interstate commerce facility to entice a minor to engage in sexual contact, three counts of distribution of child pornography, and one count of possession of child pornography. He is currently in federal custody awaiting trial.
According to the indictment, Krapf abused the children at locations in Bucks and Montgomery counties.
If convicted of all charges, Krapf faces a maximum possible sentence of life imprisonment, and a mandatory minimum of 15 years.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations, Montgomery County District Attorney’s Office, and the Limerick Township Police Department, and is being prosecuted by Assistant United States Attorney Michelle Rotella.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Co-Defendant in Cocaine Distribution Conspiracy Case Involving Former NFL Player Sam Hurd Is SentencedRead the Press Release
DALLAS — The last defendant convicted in the cocaine distribution conspiracy case that involved former NFL player Sam Hurd, III, was sentenced this afternoon in federal court in Dallas, announced U.S. Attorney Sarah R. Saldaña, of the Northern District of Texas.
Toby Lujan, 28, of Dallas, was sentenced by U.S. District Judge Jorge A. Solis, to 41 months in federal prison. He was ordered to surrender to the Bureau of Prisons on April 2, 2014. Lujan pleaded guilty in September 2012 to one count of possession with intent to distribute cocaine.
Hurd was sentenced in November 2013 to serve 15 years in federal prison. He pleaded guilty in April 2013 to conspiring to possess with the intent to distribute five kilograms or more of cocaine and 100 kilograms or more of marijuana. In addition, in June 2012, Hurd, while on pretrial release, attempted to possess with intent to distribute five kilograms or more of cocaine and at least 50 kilograms, but less than 100 kilograms, of marijuana.
Hurd’s cousin, Jesse Tyrone Chavful, of San Antonio, Texas, was sentenced in October 2013 to serve a total of 127 months in federal prison. He pleaded guilty in October 2012 to one count of conspiracy to possess with the intent to distribute five kilograms or more of cocaine. Since he committed this offense while he was on supervision for a federal drug-related firearm offense, the Court revoked his supervision and ordered that he serve 30 months in custody, consecutive to the 97-month sentence that he received for the instant offense.
Lujan and Chavful agreed to help Hurd with his illicit drug venture which he ran while he played professional football for the Dallas Cowboys and then later after he began playing football for the Chicago Bears.
For instance, on July 27, 2011, Hurd provided $88,000 to Lujan to purchase several kilograms of cocaine for him, and Hurd also loaned Lujan his Cadillac Escalade to conduct the drug transaction. Law enforcement officers stopped Lujan driving Hurd’s Cadillac and seized the $88,000 from a canvas bag containing marijuana residue. Lujan continued to try to acquire cocaine for Hurd, at Hurd’s request, which ultimately led to the December 14, 2011, meeting at a Chicago steakhouse in which Hurd agreed to buy multiple kilograms of cocaine from an undercover officer posing as a drug trafficker, on a weekly basis, for $25,000 per kilogram. Hurd was arrested as he left that steakhouse with a gift bag containing a one-kilogram sample of cocaine the “drug trafficker” gave him.
During fall 2011, while Hurd was playing football for Chicago, he contacted Chavful and asked him to find 10 kilograms of cocaine. Chavful then met with witnesses at his T-shirt shop in San Antonio and negotiated the sale for Hurd. On November 10, 2011, Chavful and a witness discussed drug loads going north, that is, to Hurd in Chicago. Chavful advised the witness not to worry about the payment because Hurd had money. Chavful also cautioned that Hurd could not be present when the drugs were delivered because of media concerns.
During spring 2012, while on pre-trial release for pending federal drug offenses, Hurd met with Chavful at his San Antonio T-shirt shop and asked him to get him cocaine and marijuana. In late May, Chavful met with a witness and agreed to buy five kilograms of cocaine and 200 pounds of marijuana, and told the witness that Hurd, whom he described as the money, was in on the transaction and ready to move. On June 6, 2012, federal law enforcement officers arrested Chavful after the witness and an undercover officer delivered the drugs to Chavful. Chavful admitted that he had phoned Hurd that day, at the telephone number listed under Big Sam in his cell phone contacts, to let Hurd know about the drugs.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay and Assistant U.S. Attorney John Kull prosecuted.
Cleveland Woman Charged with Defrauding Social Security Out of $37,000Read the Press Release
A Cleveland woman was indicted today by a federal grand jury for theft of public money and false statements to a federal agency related to the theft of more than $37,000 in Social Security funds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Zulma Rullan, 47 is accused of submitting false statements to the Social Security Administration on behalf of her daughter and herself, claiming Social Security benefits to which neither woman was entitled. The alleged theft of Social Security funds occurred between 2005 and 2013 and totaled approximately $37,427.78, according to the indictment.
The United States Social Security Administration -- Office of the Inspector General and the United States Department of Agriculture -- Office of the Inspector General conducted the investigation. The case is being prosecuted by Assistant United States Attorney Miranda Dugi.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Charleston Man Sentenced for Failing to Register as A Sex OffenderRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced yesterday to a total of 29 months’ imprisonment for violating the Sex Offender Registration and Notification Act (SORNA), United States Attorney Booth Goodwin announced. Sam Bailey, Jr., pleaded guilty to violating SORNA’s requirement that a sex offender update his registration when moving to another state or changing employment. Bailey moved from Kanawha County to Columbus, Ohio, in 2012 but failed to register as a sex offender at his new residence.
Bailey’s sex-offender status stems from a first-degree rape conviction in Monroe County, New York, in 1979.
At the time of Bailey’s SORNA violation, he was on federal supervised release for an unrelated drug conviction. His SORNA violation also constituted a violation of his supervised release conditions. The sentence imposed yesterday thus comprised 21 months’ imprisonment for the SORNA violation itself and eight months’ imprisonment for the supervised release violation. Bailey’s sentence also includes five years of supervised release after incarceration and a lifetime sex-offender registration requirement.
SORNA, also known as the Adam Walsh Child Protection and Safety Act, was enacted in 2006 to protect children from sexual exploitation and violent crime.
The United States Marshals Service conducted the investigation. Assistant United States Attorney Erik S. Goes handled the prosecution. The sentence was imposed by United States District Judge Thomas E. Johnston. The case was prosecuted as part of Project Safe Childhood, an initiative launched by the Department of Justice that implements a unified and comprehensive strategy to reduce the sexual exploitation of children. Project Safe Childhood combines law enforcement efforts, community action, and public awareness toward this goal.
Chapmanville Man Charged with Illegally Distributing Prescription PainkillersRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin today charged Carl Tomblin, 50, of Chapmanville, W.Va., with illegal drug distribution. According to an information filed in federal court today, Tomblin distributed oxymorphone, a powerful painkiller often sold under the brand name Opana.
The investigation that led to today’s charge is being conducted by the U.S. 119 Task Force and the West Virginia State Police. The prosecution is part of an ongoing effort by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District. Assistant United States Attorney Haley Bunn is handling the prosecution.
Click here to view a copy of the information.
Note: An information is only an accusation and is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Buffalo Man Pleads Guilty to Bank RobberyRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Michael Bland, 18, of Buffalo, N.Y., pleaded guilty to bank robbery, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison, a $250,000,00 fine or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that Bland robbed three M&T Banks located at 1300 Jefferson Avenue in Buffalo, 750 Main Street in Niagara Falls, and 1877 Main Street in Buffalo, between August 21, 2013 and September 4, 2013.
The indictments are the culmination of an investigation on the part of the Federal Bureau of Investigation, the Buffalo Police Department, of under the direction of Commissioner Daniel Derenda, and the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto.
Sentencing scheduled for June 16, 2014 at 12:30 p.m. before Judge Arcara.Boston Man Sentenced to 70 Months in Prison for Wire Fraud and Aggravated Identity TheftRead the Press Release
BOSTON – A Boston man was sentenced late yesterday for his role in a wire fraud and identity theft scheme.
Jean Exume, 32, of Dorchester, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 70 months in prison to be followed by three years of supervised release. On August 5, 2013, Exume was convicted of 22 counts of wire fraud and three counts of aggravated identity theft following a six-day jury trial.
From December 2009 through October 2011, Exume was an active participant in a scheme in which he used fraudulently obtained Bank of America bank cards that belonged to Bank of America customers primarily living in the Greater Boston area to purchase postal money orders. Exume often utilized fraudulent Florida driver’s licenses in the names of several of these customers in connection with the purchases. In addition, Exume used the Bank of America cards to withdraw funds directly from the customers’ accounts. The overall loss associated with Exume’s scheme was over $500,000.
United States Attorney Carmen M. Ortiz, Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, and Boston Police Commissioner William B. Evans made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Vassili Thomadakis of Ortiz’s Economic Crimes Unit and Amy Harman Burkart of Ortiz’s Cybercrime Unit.
Baltimore Armed Career Criminal Exiled to 15 Years in Prison for Illegal Possession of A GunRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Daniel Taylor, age 45, of Baltimore, Maryland, today to 15 years in prison, followed by five years of supervised release, for being a felon in possession of a firearm. Judge Quarles found that Taylor was an armed career criminal based on three previous convictions for first degree assault, unlawful manufacturing of drugs and possession with intent to distribute drugs.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to Taylor’s plea agreement, on May 30, 2012, Baltimore Police detectives stopped a car in the area of the 2200 block of East Biddle Street in Baltimore to determine if the car’s dark tinted windows were illegal. The passenger, Daniel Taylor, became visibly nervous. One of the detectives searched Taylor and recovered a loaded 9mm luger semi-automatic pistol from Taylor’s waistband. Due to his previous convictions Taylor was prohibited from possessing a firearm or ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Scott A. Lemmon and John F. Purcell, Jr., who prosecuted the case.
Arizona Man Sentenced in Methamphetamine ConspiracyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rio Rico, Arizona, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on February 24, 2014 by U.S. District Judge Karen E. Schreier.
Eduardo Martinez-Torres, age 30, was sentenced to 135 months in prison to be followed by 5 years of supervised release.
Martinez-Torres was indicted on the conspiracy charge by a federal grand jury on June 4, 2013, and he pled guilty on November 13, 2013.
During his involvement in the conspiracy, Martinez-Torres shipped methamphetamine to a co-conspirator in Sioux Falls, who in turn distributed it. He also collected payment for methamphetamine he had previously shipped.
This case was investigated by the South Dakota Division of Criminal Investigation and the U.S. Drug Enforcement Administration. Assistant U.S. Attorney John E. Haak prosecuted the case.
Martinez-Torres was immediately turned over to the custody of the U.S. Marshals Service.
Alleged Members of ATM Skimming Scheme Targeting New Jersey Bank Customers in Court for Guilty Plea, SentencingRead the Press Release
NEWARK, N.J. — Two of the leaders of a scheme to steal account information from bank customers throughout New York, New Jersey and Connecticut by installing secret card-reading devices on ATMs were in court today for separate proceedings, U.S. Attorney Paul J. Fishman announced.
Bogdan Radu, 31, of Queens, N.Y., pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Marius Vintila, 31, of Queens, was arraigned before Judge Martini after being charged in a six-count indictment on Feb.18, 2014, with conspiracy to commit bank fraud, aggravated identity theft, conspiracy to possess 15 or more counterfeit access devices, possession of 15 or more counterfeit access devices, conspiracy to possess access device-making equipment and possession of access device-making equipment. The ATM skimming operation involving Romanian nationals living in Queens is one of the largest ever uncovered by law enforcement.
Also today, Constantin Ginga, 53, who previously pleaded guilty before Judge Martini to one count of conspiracy to commit bank fraud and one count of aggravated identity theft, was sentenced to 57 months in prison and two years of supervised release. Restitution will be determined at a later date. On Feb. 25, 2014, another defendant, Marius Cotiga, 35, pleaded guilty to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in these and related cases and statements made in court:
Radu admitted designing and creating ATM skimming devices and pinhole cameras. Each skimmer, an electronic device, would read and record identity and account information contained in the magnetic strip of a customer’s ATM card. The pinhole camera secretly recorded bank customers’ keystrokes as they entered their personal identification numbers. Radu taught others how to install them on bank ATMs, and gave his conspirators the devices and pinhole cameras to install on bank ATMs throughout New Jersey, New York, Connecticut and Florida. After capturing customer account information, Radu and others created counterfeit ATM cards they used to withdraw millions of dollars in cash from bank ATMs. From June 2012 through July 2013, they used these devices and cameras to defraud Wells Fargo, Citibank and TD Bank of $5 million.
Vintila worked with Radu to design and create the skimming devices and pinhole cameras and recruited individuals, including Cotiga and Ginga, to install them on bank ATMs. Vintila also used an alias to rent multiple self-storage units, in which he stored the contents of an entire skimming operation, including skimming devices, pinhole cameras, super glue, tape, SD cards, batteries, computers, molds, fraudulent ATM cards and cash proceeds. He was apprehended in Sweden and extradited to the United States on Feb. 7, 2014.
Cotiga and Ginga admitted they installed skimmers and pinhole cameras at bank ATMs and subsequently used counterfeit ATM cards to withdraw cash from bank ATMs. Cotiga, Ginga and others stole approximately $985,000 from Citibank ATMs in New Jersey, New York and Connecticut.
The charges to which Radu and Cotiga pleaded guilty arose from a larger investigation into a skimming scheme that targeted customers in the tri-state area in 2012 and early 2013. Of the 11 others charged in the scheme, all Romanian nationals who lived in Queens, 10 are in custody.
The bank fraud conspiracy charge to which Radu and Cotiga each pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine. The aggravated identity theft charge to which Radu pleaded guilty carries a mandatory, consecutive penalty of two years in prison and a $250,000 fine. Sentencings for Radu and Cotiga are currently scheduled for June 5, 2014.
U.S. Attorney Fishman praised special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge James Mottola, along with special agents of Immigration and Customs Enforcement, Homeland Security Investigations in Newark, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation. He also thanked the Englewood, N.J., Police Department for their role in effecting Ginga’s arrest.
The charges and allegations against the other defendants charged in the pending complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal and David Eskew of the U.S. Attorney’s Office Criminal Division in Newark.
14-065
Defense counsel:
Radu: John P. McGovern Esq., Newark
Vintila: Chris Adams Esq., Colts Neck, N.J.
Ginga: Warren Sutnick Esq., Hackensack, N.J.
Cotiga: John Weichsel Esq., HackensackRadu Information
Cotiga InformationAlien Sentenced for Possessing Firearms He Intended to Take to MexicoRead the Press Release
McALLEN, Texas – Manuel Francisco Gomez-Perales, a Mexican national who returned to the United States illegally to recover firearms previously acquired for another person knowing those firearms were destined for Mexico, has been sentenced to prison, United States Attorney Kenneth Magidson announced today.
Chief United States District Judge Ricardo H. Hinojosa sentenced Gomez-Perales, 31, of Monterrey, Nuevo Leon, Mexico, to 114 months of imprisonment. On Sept. 7, 2011, Gomez pleaded guilty to being an alien, illegally and unlawfully present in the United States, in possession of firearms.
Gomez had been removed from the United States on Aug. 9, 2010, but had returned illegally four days later. Homeland Security Investigations (HSI) agents were able to locate Gomez and began to follow his vehicle. Once he noticed the agents, Gomez attempted to flee. Ultimately, he crashed his vehicle into a utility pole, then fled on foot, abandoning his common law spouse and child, before being apprehended by law enforcement.
Inside the vehicle, law enforcement located four AKM type rifles with obliterated serial numbers.
Gomez admitted he had acquired the firearms with the intent to ship them to other persons and that the firearms were destined for Mexico. Gomez further admitted he was deported before he could transfer the firearms; therefore, he had returned to the United States to complete the transfer as originally planned.
Gomez has been in custody since his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by HSI, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pharr Police Department. The case was prosecuted by Assistant United States Attorney (AUSA) Steven Schammel. AUSA Jason C. Honeycutt handled the sentencing today.
Akron Man Faces Heroin ChargesRead the Press Release
A federal grand jury returned a four-count indictment charging Desean R. Harbin, 32, of Akron, with possession with intent to distribute and distribution of heroin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that on October 31, November 12, December 16, and December 19, 2013, Harbin possessed and distributed amounts of heroin.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration and the Akron Police Department. The case is being prosecuted by Assistant United States Attorney Linda H. Barr.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
AdvisoryRead the Press Release
The attached documents in the matter of the United States of America vs. Charles D. Moreau were filed today with the U.S. District Court in Providence.
The matter is scheduled to be heard by U.S. District Court Judge John J. McConnell, Jr., at 9 AM on Friday, February 28, 2014.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Acting Assistant Attorney General Raman <br /> Announces Departure from Criminal DivisionRead the Press Release
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division announced her departure from the department today, effective as of March 21, 2014.
“Over the past year, Mythili Raman has done an exemplary job of leading the Criminal Division during a pivotal time,” said Attorney General Eric Holder. “Since she first joined the department as a Criminal Division trial attorney nearly two decades ago, and throughout her career both in the division and the Maryland U.S. Attorney’s Office, Mythili has proven herself as a tireless and talented prosecutor, and a fearless advocate for the United States. From combating financial and health care fraud, to fighting foreign and domestic corruption, and safeguarding the American people from crime and drug-fueled violence, Mythili’s tenure as head of the Criminal Division has been defined by extraordinary achievements. Her strong and steady leadership has made an enormous difference in the past year. Although I wish her the best as she takes the next step in her career, I will sorely miss her sound judgment, her keen intellect, her close friendship, and her commitment to the work of the department. I thank her, on behalf of the American people, for her years of dedicated service.”
“I feel so lucky to have started my department career as a trial attorney in the Criminal Division seventeen and a half years ago, and feel even more fortunate that this division has been my last home at the Justice Department,” said Acting Assistant Attorney General Raman. “The Criminal Division is an extraordinary institution, and it has been a singular privilege to lead it for the past year and to serve alongside the dedicated, talented, and simply excellent women and men who work every day to do justice. I will always be grateful to the Attorney General for giving me this opportunity to serve.”
During Raman’s tenure as Acting Assistant Attorney General, the division has obtained significant results in all areas of financial fraud enforcement. Under Raman’s leadership, the Criminal Division, working alongside the Antitrust Division, launched a wide-ranging investigation of the alleged manipulation of foreign exchange rates by multi-national banks around the world. In addition, the division continued aggressively to investigate the manipulation of the London InterBank Offered Rate (LIBOR), charging six individuals at two different financial institutions and reaching a criminal resolution with one financial institution that resulted in the second largest penalty assessed in the department’s ongoing, industry-wide LIBOR probe. The division further announced charges against or convictions of more than a dozen individuals for FCPA-relation violations, and secured three of the ten largest corporate FCPA resolutions in history. In addition, Raman oversaw a record-breaking year for health care fraud enforcement in the number of cases filed, individuals charged, guilty pleas secured and convictions obtained at trial.
Under Raman’s leadership, the division also made significant strides in money laundering enforcement, including bringing charges, with the U.S. Attorney’s Office in Manhattan, against Liberty Reserve, one of the world’s largest digital currency companies, and several of its principals, in the department’s largest-ever money laundering prosecution. The division also continued to emphasize public corruption enforcement, securing several convictions in a wide range of domestic public corruption cases throughout the country, including of former U.S. Congressman Richard Renzi of Arizona, and obtaining separate convictions of several individuals, including a former candidate for U.S. Congress, for violations of federal campaign finance laws.
During Raman’s tenure, the division has aggressively pursued cyber crime and intellectual property crimes, and is currently conducting the ongoing investigation of the data breach at Target. Among other prosecutions, the division, with the U.S. Attorney’s Office in Atlanta, secured the guilty plea of an international cybercriminal from Thailand who was responsible for distributing “Spy Eye” malware that infected 1.4 million computers around the world. The division also charged the first-ever copyright infringement cases involving counterfeit mobile device apps.
The division also continued to make great strides in the fight against violent crime, convicting several members of the Los Zetas cartel for the 2011 murder of an American law enforcement agent in Mexico and, just a few weeks ago, securing the conviction of a leader of the Barrio Azteca gang who was responsible for the murder of employees of a U.S. consulate in Mexico.
Raman joined the department as a trial attorney in the Criminal Division in 1996. In 1999, she joined the U.S. Attorney’s Office in Maryland where she served in a number of leadership positions, including Appellate Chief and Chief of the office’s southern division. She returned to the Criminal Division in 2008, serving first as acting Chief of Staff, and then as Principal Deputy Assistant Attorney General and Chief of Staff, until she was named Acting Assistant Attorney General of the Criminal Division on March 1, 2013.
Tuesday 25 February 2014
Winter Park Man Sentenced to 8 Years in Federal Prison for Distribution and Possession of Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Charlene E. Honeywell today sentenced Robert Magruder, Jr. (55, Winter Park) to 8 years in federal prison for distributing and possessing child pornography. As part of his sentence, Magruder was ordered to serve a 10-year term of supervision, following his release from prison, and required to register as a sex offender. The court also ordered Magruder to forfeit the devices he used to possess and distribute the child pornography. Magruder pleaded guilty on October 31, 2013.
According to court documents, on April 5, 2013, Magruder made files of child pornography available for download by other individuals by placing the files into a shared folder of an online peer-to-peer file sharing network. On this same date, from Magruder’s computer, an undercover Task Force Agent downloaded three sets of videos depicting children less than 12 years of age being sexually abused, exploited, and subjected to sadistic or masochistic conduct. Magruder was subsequently identified by the Federal Bureau of Investigation as the user of the computer that distributed the images.
On June 12, 2013, agents interviewed Magruder at his residence. He admitted that he used the peer-to-peer file sharing program to search for and collect child pornography, and acknowledged that he was aware that files in his shared folder were available for download by other individuals. Agents also executed a search warrant at Magruder’s residence and seized electronic devices containing several images and videos of child pornography as well as evidence of Magruder’s use of the peer-to-peer file sharing program that he used to distribute the child pornography.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
United States Settles False Claims Act Lawsuit Against Florida Pain Clinic and Its OwnerRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announced today that a Florida-based physician, Dr. Steven Chun, has agreed to pay $750,000 to resolve allegations that he and his clinic billed Medicare for physician office visits that he did not perform.
The United States alleges that, between 2006 and 2011, Dr. Chun owned and operated a clinic, first in Sarasota and then in Bradenton, called Sarasota Pain Associates. The United States alleges that, beginning in 2006, Dr. Chun billed Medicare for office visits at the highest levels possible, falsely claiming to have conducted comprehensive examinations of patients with complex problems. In fact, those patients visited Sarasota Pain Associates for scheduled procedures for which Dr. Chun was paid. In addition to getting paid for those procedures, Dr. Chun billed and was paid by Medicare for examinations that he did not in fact perform."This settlement is a significant achievement by our Civil Division, which showed great determination in pursuing a troubling pattern of billing fraud," said U.S. Attorney A. Lee Bentley, III. "This case should send a message that we will not tolerate this kind of health care fraud in the Middle District of Florida."
"Count on my agency to aggressively pursue cases whether the target is a large corporation or a single provider," said Christopher B. Dennis, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General Miami region. "Besides a significant payment, Dr. Chun has agreed to let an independent organization review his claims for three years and then report to the government."
The allegations covered by the settlement were raised in a lawsuit filed by Cathia Gavin and Penelope Thomas, who both formerly worked as nurses for Dr. Chun. The suit was filed under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for the submission of false claims and to receive a share of any recovery. The False Claims Act authorizes the United States to intervene in such lawsuits and take over primary responsibility for settling or litigating them.
In addition to the $750,000 payment, Dr. Chun will enter into a three-year Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General. The agreement requires Dr. Chun to attend training courses provided by the Centers for Medicare and Medicaid Services and to conduct an independent external review of his coding, billing, and claims submission to federal health care programs.
This settlement illustrates the government’s emphasis on combating health care fraud. 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 $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The investigation of this matter reflects a coordinated effort among the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Middle District of Florida, and the U.S. Department of Health and Human Services’ Office of Inspector General.
The lawsuit is captioned U.S. ex rel. Gavin v. Sarasota Pain Associates, P.A. and Steven Y. Chun, M.D., 6:11-cv-583-T-23TBM (M.D. Fla.). The claims asserted against the defendants are allegations only, and there has been no determination of liability.
United States Postal Service Employee Charged in Scheme to Fraudulently Extinguish Debts and to Obtain Fraudulent Tax RefundsRead the Press Release
Aaron H. Kelly, a United States Postal Service employee, was indicted yesterday in the U.S. District Court for the District of Maryland for four counts of mail fraud, two counts of bank fraud, one count of corruptly endeavoring to obstruct and impede the Internal Revenue Service (IRS) and two counts of aiding and assisting in the preparation of false tax returns, the Justice Department and IRS announced today following the unsealing of the indictment.
According to the indictment, Kelly, a resident of Maryland, engaged in a scheme to defraud the IRS, the Thrift Saving Plan and the Educational Systems Federal Credit Union by sending fictitious financial instruments to fraudulently extinguish the taxes he owed to the United States as well as the debts he owed to the Thrift Savings Plan and the Federal Credit Union. In addition, Kelly submitted two false tax returns to the IRS that requested millions of dollars in fraudulent refunds.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Kelly faces a statutory maximum potential sentence of 20 years in prison for each mail fraud count, 30 years in prison for each bank fraud count and three years in prison for each of the tax-related counts.
This case was investigated by the Treasury Inspector General for Tax Administration and special agents of IRS - Criminal Investigation. Trial Attorneys Ken Vert and Yael T. Epstein of the department’s Tax Division are prosecuting the case.
U.S. Attorney to Convene Roundtable Discussion on State's Emerging Heroin EpidemicRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin is bringing together state legislators and medical, treatment, prevention and law enforcement professionals to discuss the influx of heroin into West Virginia, as well as strategies and next steps in turning back the tide of heroin addiction.
WHAT: Heroin Roundtable Discussion
WHEN: Wednesday, February 26, 2014, 5:30pm
WHERE: Robert C. Byrd United States Courthouse, 300 Virginia Street East, Fifth Floor
WHO: U.S. AttorneyBooth Goodwin and panelists including:
WV Delegate Don PerdueWV Senator Ron Stollings
P. Bradley Hall, MD, Executive Medical Director, WV Medical Professionals Health Program and President, WV Society of Addiction Medicine
Carl “Rolly” Sullivan, MD, Professor and Vice-Chairman, Director of Addictions Programs, WVU School of Medicine, Department of Behavioral Medicine and Psychiatry
Allen Mock, MD, WV Chief Medical Examiner
Chief W. H. “Skip” Holbrook, Huntington Police Department
Captain Tim Bledsoe, West Virginia State Police, Bureau of Criminal Investigations
Matt Boggs, Project Director, The Healing Place of Huntington
Mike Goff, Administrator, Controlled Substances Monitoring Program, WV Board of Pharmacy
Gordon Merry, Director, Cabell County Emergency Medical Services
Kathy Paxton, Director, Division of Alcoholism and Substance Abuse, Bureau for Behavioral Health and Health Facilities, WV Department of Health and Human Resources
Stefan Maxwell, MD, Director, NICU, CAMC Women and Children’s Hospital
Denzil Hawkinberry II, MD, Community Care of WV
Two San Jose Men Indicted and Held for Sex Trafficking of ChildrenRead the Press Release
SAN JOSE – A federal grand jury in San Jose indicted Justin Everett Crutchfield and Demontae Terrell Toliver, on January 29, 2014, with sex trafficking of children and sexual exploitation of children, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
According to the indictment, Crutchfield and Toliver, ages 27 and 23, respectively, both of San Jose, Calif., are alleged to have engaged in sex trafficking of children between June 16, 2013, and June 22, 2013, recruiting and coercing two girls, ages 15 and 17, to engage in commercial sex acts on the streets of San Jose for the financial benefit of the men. Both men are further charged with the production of child pornography, taking pictures of both girls engaged in sexually explicit conduct. At the time of his arrest, Crutchfield was employed as a Peer Health Counselor with the Santa Clara County Department of Mental Health, a fact which he freely shared with the victims when he provided them with his business card.
Crutchfield was arrested by San Jose Police in June 2013, and was initially charged by the County of Santa Clara. Toliver was arrested pursuant to an outstanding warrant from the State of California on February 8, 2014. Both men were turned over to federal authorities on February 11, 2014, and made their initial appearances in federal court in San Jose that same day. Toliver had a continued bail hearing today before the Honorable Howard G. Lloyd, United States Magistrate Court Judge and was ordered to be detained pending trial. Crutchfield is also currently being held without bail. The defendants’ next scheduled appearance is at 9:00 a.m. on April 17, 2014, before the Honorable D. Lowell Jensen, United States District Court Judge.
If convicted, the defendants face a maximum sentence of life in prison, a mandatory minimum 15 years in prison, and a fine of $250,000, for each violation of 18 U.S.C. § 1591, and a maximum sentence of 30 years in prison, a mandatory minimum 15 years in prison, and a fine of $250,000 for each violation of 18 U.S.C. § 2251(a). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Amie D. Rooney is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Tracey Andersen. The prosecution is the result of a joint investigation by the San Jose Police Department Human Trafficking Task Force and the Federal Bureau of Investigation.
Please note that a criminal complaint contains only allegations against an individual and, as with all defendants, Justin Everett Crutchfield and Demontae Terrell Toliver, must be presumed innocent unless and until proven guilty.
Anyone who suspects instances of human trafficking are encouraged to call the FBI or the Human Trafficking Hotline at 1-888-373-7888. Anonymous calls are welcome.
In addition, suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, via its toll-free 24-hour hotline, 1-800-843-5678.
(Crutchfield indictment )
Three Davis Men Indicted by Federal Grand Jury with Conspiracy and Bank FraudRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that VICTOR EARL GARRETT, age 57 and ROY LYNN WESBERRY, age 54, both of Davis, Oklahoma, were indicted by a federal grand jury with Conspiracy to Commit Bank Fraud, a violation of Title 18, United States Code, Section 1349 and Bank Fraud, a violation of Title 18, United States Code, Sections 1344 and 2. W.A. MOORE, JR., a/k/a Dub Moore, age 74, also of Davis, Oklahoma, was charged and pled guilty on February 24, 2014 to an Information charging him with one count of Bank Fraud in violation of Title 18, United States Code, Section 1344.
The charges arose from a joint investigation by the United States Department of Agriculture, Office of Inspector General, the Federal Deposit Insurance Corporation, Office of Inspector General and the Federal Bureau of Investigation.
On March 11, 2011, the First National Bank of Davis, in Davis, Oklahoma, was closed by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation (FDIC) was appointed as receiver. The bank was closed because the bank had a cash shortfall of approximately $465,000.00.
The charges of Conspiracy to Commit Bank Fraud and Bank Fraud are in punishable by up to 30 years imprisonment and/or up to a $1,000,000 fine.
The Honorable Steven P. Shreder, Magistrate Judge, in the United States District Court for the Eastern District of Oklahoma, accepted MOORE’s guilty plea of MOORE and ordered the completion of a presentence investigation report. Sentencing will be scheduled following its completion.
Assistant United States Attorney Melody Nelson and Tom Wright represent the United States.
“Defendants VICTOR EARL GARRETT and ROY LYNN WESBERRY 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. Each 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-paroleable”
Thirteen Arrested in Connection with Meth and Heroin Distribution RingRead the Press Release
Thirteen people were arrested and law enforcement seized 50 pounds of crystal meth, $160,000 of cash and seven guns in the culmination of a lengthy investigation of Pierce County based drug trafficking ring, announced U.S. Attorney Jenny A. Durkan. The Drug Enforcement Administration led the wire-tap investigation which identified the members of a criminal conspiracy distributing significant quantities of meth and heroin throughout Western Washington. The investigation uncovered a conversion lab in Spanaway, Washington where liquid meth was processed into highly addictive crystal methamphetamine. Twelve of the people arrested appeared in U.S. District Court in Tacoma today, charged with a variety of drug trafficking offenses.
“This criminal group built a business in moving two drugs, meth and heroin, that destroy lives and families and tear apart communities,” said U.S. Attorney Jenny A. Durkan. “Through the course of this case, law enforcement took more than 66 pounds of crystal meth off the streets and more than two and a half pounds of heroin. Federal and local partners working together have dismantled a major pipeline for drugs.”
“Methamphetamine and heroin are a significant threat to the Pacific Northwest,” stated DEA Special Agent in Charge Matthew G. Barnes. “This organization was not only distributing heroin and methamphetamine, but was also converting the methamphetamine into a highly addictive form of crystal methamphetamine. I commend the dedication and hard work of all the law enforcement agencies that brought these drug traffickers to justice.”
When 17 search warrants were served on Sunday and Monday February 23 and 24, 2014, law enforcement seized 50 pounds of crystal meth and two gallons of liquid meth that was in the process of being converted to crystal meth. The conversion of liquid meth to crystal meth is a potentially dangerous process involving highly flammable chemicals such as acetone. Over the year-long course of the investigation law enforcement seized 66 pounds of crystal meth, 2.5 pounds of heroin, a total of $310,000, 25 vehicles (some with hidden compartments for drugs and cash), and seven firearms (three of them stolen). A photo of liquid meth is attached to this press release.
Those charged in the case include:
LUIS HERNANDEZ, 58, Tacoma, Washington
JUAN HERNANDEZ, 34, Kent, Washington
JAIME HERNANDEZ, 29, Tacoma, Washington
RUVISELA HERNANDEZ, 35, Lakewood, Washington
PEDRO PERALTA, 41, Lakewood, Washington
EZEQUIEL SANCHEZ-CARMONA, 21, Tacoma, Washington
WALTER VARGAS, 38, Tacoma, Washington
ANDREW GARDEE, 23, Puyallup, Washington
BRITNEY SIKKENGA, 21, Puyallup, Washington
MICHAEL ECKENRODE, 38, Tacoma, Washington
GERARDO GARCIA, 20, Oakland, California
CARLOS MESINA-OROZCO, 22, Tacoma, Washington
JORGE OROZCO-MAGANA, 37, Tacoma, WashingtonThe charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Due to the large amounts of drugs involved and the presence of firearms, defendants could face mandatory minimums of ten years in prison to life in prison if convicted.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. This investigation was led by DEA Tacoma in conjunction with Tahoma Narcotics Enforcement Team, Lakewood Police Department, West Sound Narcotics Team, and Pierce County Sheriff’s Office.
The case is being prosecuted by Assistant United States Attorneys Lisca Borichewski and Brian Werner.Swanton Man Pleads Guilty to Child Pornography OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Timothy Keevan, 49, of Swanton, Vermont, pleaded guilty on February 14, 2014, before Chief Judge Christina Reiss in the United States District Court in Burlington, Vermont, to one count of accessing images of child pornography with the intent to view them, in violation of 18 U.S.C. § 2252(a)(4)(B). After accepting Keevan’s guilty plea, Judge Reiss granted the government’s motion and ordered him remanded pending sentencing, which is presently scheduled for June 4, 2014.
According to court records and proceedings, Keevan, an operations support technician with U.S. Citizen and Immigration Service who works in the shipping and receiving warehouse in St. Albans, Vermont, used a work-issued computer to access websites that displayed images of child pornography. Keevan’s activities were discovered because his computer, like all government issued computers, was continually monitored for non-work related or other inappropriate activity. The computer was confiscated and the images of child pornography were discovered on it.
Keevan faces a statutory maximum term of imprisonment of ten (10) years imprisonment, a mandatory minimum term of five (5) years, and up to a lifetime term, of supervised release, and a fine of up to $250,000. Keevan will be required to pay a special assessment of $100. The actual sentence will be determined by the court with reference to the advisory federal sentencing guidelines.
United States Attorney Coffin commended the efforts of the Department of Homeland Security Office of Inspector General, under the direction of Special Agent in Charge Gregory K. Null for the Northeast Region, the Vermont State Police, the United States Secret Service, and the Office of Immigration and Customs Enforcement, in the prosecution of Keevan.
The prosecution of Keevan is being handled by Assistant U.S. Attorney Barbara A. Masterson. Keevan is represented by Federal Defender Michael L. Desautels.
U.S. Attorney Coffin noted that this prosecution is part of the U.S. Department of Justice=s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney=s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
St. Francis Man Charged with First Degree Murder, Kidnapping, Interstate Transportation of A Stolen Motor Vehicle and LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for First Degree Murder, Kidnapping, Interstate Transportation of a Stolen Motor Vehicle and Larceny.
Riley McCloskey, age 20, was indicted on February 12, 2014, in a Superseding Indictment. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 21, 2014, and pled not guilty to the Superseding Indictment. McCloskey was originally indicted on two counts of Second Degree Murder, Aiding and Abetting on January 7, 2014.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to incidents that occurred between December 23, 2013, and December 24, 2013. McCloskey and others were charged with unlawfully killing two victims during the perpetration of kidnappings, and aiding and abetting each other in the commission of the offenses. One of the victims was strangled until he was unconscious and then stabbed in the chest with a screwdriver. The second victim was assaulted and also stabbed in the chest with a screwdriver. McCloskey is also alleged to have stolen a motor vehicle and driven it from Nebraska across the state line into South Dakota.
The charges are merely accusations and McCloskey is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, the Rosebud Sioux Tribe Law Enforcement Services, and the Cherry County, Nebraska Sheriff’s Office. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
McCloskey was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
St. Francis Man Charged with Assaulting, Resisting, Opposing and Impeding A Federal Officer and Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, Opposing and Impeding a Federal Officer, and Assault with a Dangerous Weapon.
Riley McCloskey, age 20, was indicted on February 12, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 21, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to an incident that occurred on December 31, 2013, when McCloskey assaulted a law enforcement officer and a second victim with a knife.The charge is merely an accusation and McCloskey is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
McCloskey was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Shelby County Man Sentenced for Federal Firearms ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 68-year-old Center, Texas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
John Madison Hughes pleaded guilty on Oct. 2, 2013, to possessing a stolen firearm and was sentenced to 72 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on Oct. 17, 2012, a law enforcement officer was dispatched to a residence on County Road (CR) 1286 in Shelby County, Texas regarding a domestic disturbance involving Hughes and his girlfriend. A sheriff’s deputy stopped Hughes’ truck on CR 1286 and detained Hughes pending further investigation. The deputy observed a rifle on the seat of Hughes’ truck. Hughes’ girlfriend told deputies the rifle belonged to her an Hughes took it without her consent. Hughes was indicted by a federal grand jury on Jan. 23, 2013, and charged with federal firearms violations.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.This case was investigated by the Shelby County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.
####Serial Bank Robber Sentenced to Nearly Nine Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Scott Niemic, 36, of Swansea, Mass., was sentenced today in U.S. District Court in Providence to 105 months in federal prison for committing five “note-job” bank robberies in Rhode Island and Massachuetts in a span of twenty-six days in March and April 2012. A “note-job” robbery occurs when a note demanding money is passed but no weapon is shown.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Niemic to serve 3 years supervised release upon completion of his prison term. Niemic pleaded guilty on October 9, 2013, to five counts of bank robbery.
Niemic’s sentence was announced by United States Attorney Peter F. Neronha, Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI, and Warwick Police Chief Colonel Stephen M. McCartney.
At the time of his guilty plea, Niemic admitted to robbing a Plymouth, Mass., bank on March 22, 2012, of $4,923; a second bank in Plymouth on March 27 of $3,592; a Warwick, R.I., bank on April 3 of $8,100; a Bellingham, Mass., bank on April 10 of $5,045; and a Wellesley, Mass., bank on April 16 of $5,453.
According to information presented to the court, Niemic entered each of the banks wearing black wrap-around sunglasses and a baseball cap, and handed a note to a bank employee that stated that he was armed, that he was demanding money and that no dye packs were to be included with the cash. In some instances Niemic verbally told bank employees that he was armed. In four of the robberies, Niemic kept a cell phone to his ear purporting to be having a conversation with another person.
According to information presented to the court, investigators determined that the note left at the scene of the Warwick robbery on April 3 was written on a piece of paper torn from a receipt for motor vehicle excise taxes paid in Old Town, Maine. The investigation determined that the car was registered to Scott Niemic’s mother and that the defendant, who was living in Swansea, had possession of the vehicle. On April 4, police executed a court authorized search of the vehicle. Among the items seized was a piece of paper that matched the torn paper handed to the bank employee the day before. Police learned that Scott Niemic was also in possession of a second vehicle.
On April 23, 2012, an FBI agent who was a member of the law enforcement team investigating the bank robberies spotted Niemic operating a vehicle on Rte. 24 in Massachusetts and contacted Massachusetts State Police for assistance. A state trooper attempted to stop Niemic’s vehicle but Niemic refused to stop, instead fleeing onto the streets of Fall River. Niemic was apprehended after driving at speeds in excess of 120 miles per hour and crashing his vehicle. Investigators recovered nearly $8,100 in cash from Niemic’s vehicle.
The case was prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
United States Attorney Peter F. Neronha acknowledged the cooperation and assistance in the prosecution of this case by the offices of Plymouth County, Mass., District Attorney Timothy J. Cruz; Norfolk County, Mass., District Attorney Michael W. Morrissey; and Worcester County, Mass., District Attorney Joseph D. Early, Jr.
The bank robberies were investigated by the FBI, and the Warwick, R.I., Plymouth, Mass., Bellingham, Mass., and Wellesley, Mass, Police Departments, with the assistance of Swansea and Westport, Mass., Police and the Massachusetts State Police.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Sequim Drug Trafficker Arrested Following High Speed ChaseRead the Press Release
The owner of ‘Sellin Style’ car dealership in Sequim, Washington was arrested on drug trafficking charges Sunday evening following a high speed chase that ended after two sets of spike strips were placed on the highway, announced U.S. Attorney Jenny A. Durkan. TIMOTHY P. SMITH, 29, a long time Clallam County resident was charged with conspiracy to distribute methamphetamine, four counts of distribution of methamphetamine and maintaining a drug involved premises. Two of SMITH’s co-conspirators, KELSEY A. DAVIS and TAMMY R. COBURN were also charged in the case. SMITH remains detained at the Federal Detention Center at SeaTac, Washington. DAVIS is in federal custody with a detention hearing Thursday. COBURN is being sought by law enforcement.
“The charges in this case follow a lengthy investigation of Timothy Smith’s drug dealing in Clallam County,” said U.S. Attorney Jenny A. Durkan. “Federal law enforcement officers with ATF, FBI and DEA worked closely with the Clallam County Sheriff’s Office and other local partners to shut down the meth dealing which was a blight on the community. Smith and his cohorts now face significant federal sentences for their criminal conduct.”
“I am pleased that this complex investigation involving federal, state, and local law enforcement agencies has resulted in the arrest of a prolific drug dealer in Clallam County,” said Sheriff Bill Benedict. “This criminal enterprise has fueled too much personal misery and property crime in Clallam County. I am grateful to our federal partners in the DEA, FBI, ATF, and DOJ, as well as the Washington State Patrol, for the successful outcome in this operation.”
According to the criminal complaint and police reports on the arrest, SMITH and his cohorts were under investigation by law enforcement as early as February 2012. On multiple occasions SMITH, DAVIS and COBURN sold methamphetamine to a person working with law enforcement. SMITH sold methamphetamine on multiple occasions in June, July and August 2013 at his ‘Sellin Style’ car dealership on Old Blyn Highway near Sequim.
As part of an investigation and take down of a larger drug ring, supplying methamphetamine to SMITH and others, law enforcement arrested SMITH as he traveled back to Sequim on Sunday evening February 23, 2014. Shortly after SMITH and DAVIS’ vehicle crossed the Hood Canal Bridge, the Washington State Patrol pulled the car over. After initially stopping, SMITH sped away, traveling at speeds nearing 100 mph and weaving into the lane for oncoming traffic. Troopers noticed white bags tossed from the car. Inside was 1.6 pounds of suspected methamphetamine. The car hit one set of spike strips and continued on. After hitting a second set of spike strips the car came to a halt and SMITH and DAVIS were taken into custody.The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI, ATF, DEA, and Olympic Peninsula Narcotics Task Force (OPNET) containing officers from Clallam County Sheriff’s Office, Jefferson County Sheriff’s Office, Port Angeles Police Department, Sequim Police Department, Neah Bay Department of Public Safety, Elwha Klallam Police, LaPush Police, the U.S. Coast Guard, U.S. Border Patrol, the Washington Department of Corrections, Washington State Patrol and the West Sound Narcotics Enforcement Team (WestNet) which contains officers from the Kitsap County Sheriff’s Office and Poulsbo Police.
The case is being prosecuted by Assistant United States Attorney Gregory A. Gruber.Pharmacist Sentenced to Seven Years in Prison for Obtaining $1.7 Million from Health Insurers for Drug He Never DispensedRead the Press Release
CHICAGO — A Chicago pharmacist was sentenced to seven years in federal prison after being convicted at trial of collecting more than $1.7 million through false claims he submitted to insurance companies for a drug that he never dispensed and stealing the identities of unsuspecting pharmacy customers to make that money, which he used to finance a lavish lifestyle. The defendant, RONALD KIELAR, also created fake documents to make his false insurance claims appear legitimate.
Kielar, 76, of Mundelein, was a pharmacist at the former Cartagena Pharmacy, located in the 1500 block of West Devon Avenue, which was owned by his ex-wife. He was sentenced to five years in prison on six counts of health care fraud and one count of obstruction of justice, and received a mandatory consecutive sentence of two years on three counts of aggravated identity theft. Kielar, who was convicted on all 10 counts he was charged with at a trial last fall, was ordered to begin serving the 84-month sentence on June 10.
U.S. District Judge Robert M. Dow, Jr., who imposed the sentence on Friday, also ordered Kielar to pay more than $1.725 million in restitution and to forfeit nearly $78,000 in proceeds from the sale of property he owned in Florida.
According to court documents, Kielar used patients’ insurance information, including their names and dates of birth, to bill for the drug Procrit, which stimulates the production of red blood cells. These patients, however, were never prescribed Procrit, Kielar never provided them with the medication, and the patients never authorized the use of their insurance information to submit claims for payment. After he was indicted, Kielar forged prescriptions, patient receipts, and false invoices to make the insurance claims look legitimate. Between November 2004 and August 2010, Kielar submitted 603 false claims and received more than $1.7 million from Blue Cross and Blue Shield of Illinois and the United Food and Commercial Workers Unions and Employers Midwest Health Benefit Fund.
“Each time [Kielar] hit the submit button on the pharmacy’s computer for a Procrit claim, he made a calculated choice: to lie to the victim insurance company who received, processed, and paid on the claim,” Assistant U.S. Attorney Heather McShain wrote in a sentencing memo. Kielar also betrayed a physician who had been his friend for 40 years and whose name and DEA registration number Kielar used without permission, as well as unsuspecting patients whose personal information he used.
Evidence showed that Kielar used proceeds from the fraud scheme to pay salaries to himself and his ex-wife, and then used those funds to pay mortgages on his home in Illinois, as well as properties in Florida and Arizona.
The sentence was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago; and John Redmond, Special Agent-in-Charge of the Chicago Office of the U.S. Food and Drug Administration Office of Criminal Investigations.
The government was represented by Assistant U.S. Attorneys Heather McShain and Steven J. Dollear.
Petersburg Fugitive Apprehended by U.S. Marshals Service Fugitive Task ForceRead the Press Release
RICHMOND, Va. – Shawn Rives, 33, of Petersburg, Va., was arrested today on an outstanding federal warrant after failing to appear in court on November 7, 2013. Rives was indicted on October 16, 2013, and failed to appear before United States District Court Judge James R. Spencer for his arraignment. He is charged with two counts of possession with the intent to distribute cocaine base and three counts of possession with the intent to distribute cocaine hydrochloride. If convicted, Rives faces a maximum penalty of 40 years in prison on each of the cocaine base counts and 20 years in prison on each of the cocaine hydrochloride counts.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office; Robert Mathieson, U.S. Marshal for the Eastern District of Virginia; and Ray J. Tarasovic, Chief of Police for the City of Richmond Police Department, made the announcement.
The United States Marshal Service (USMS) Fugitive Task Force, in conjunction with the FBI, arrested Rives early this morning at the Southwood Apartments in Richmond, Virginia. According to an affidavit filed in the case, as the Fugitive Task Force made entry into the apartment, Rives kicked through the drywall of a closet in the residence, and squeezed through the wall, entering the bedroom of a five year old girl in the apartment next door where he attempted to hide.
An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI and the Richmond Police Department. Assistant United States Attorney Angela Mastandrea-Miller is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Pennsylvania Middle School Football Coach, School Cook and Summer Camp Counselor Sentenced to 10 Years in Prison for Attempted Online Enticement of A MinorRead the Press Release
WILMINGTON, Del. – Michael J. Barndt, a/k/a “mikecoach73,” age 40, of Sellersville, Pennsylvania, was sentenced today to 10 years in federal prison for Attempted Coercion and Enticement of a Minor, in violation of federal law. Barndt also was sentenced to five years of supervised release following his prison sentence. He also will be required to register as a sex offender in any jurisdiction in which he lives, works, or attends school.
Prior to his arrest, Barndt had been employed as a chef manager at the Lakeside School in Horsham Township, Pennsylvania since 2009. Barndt also served for six years as the football coach at Springfield Township Middle School, in Montgomery County, Pennsylvania. He last coached in 2012 – the last football season prior to his arrest. During the summer months, Barndt worked as a camp counselor at “Blue Bell Camp,” in Blue Bell, Pennsylvania, where his duties including coaching football and driving children home from camp.
According to court documents and statements made in court, Barndt was arrested on June 19, 2013, after he traveled from his Pennsylvania home to the Concord Mall, in Wilmington, Delaware, to meet a person he believed to be a 14-year-old girl for sexual activity. Barndt identified this supposed 14-year-old girl, who was actually an undercover federal agent, after he posted an on-line personals ad on www.craigslist.com. In the ad, which he entitled, “Real Teen Fantasy,” Barndt expressed interest in a sexual liaison with a teenage girl. Using the screen name “mikecoach73,” Barndt engaged in a series of explicit online chat conversations with the undercover agent, during which he transmitted explicit photos of himself. Through the chats, Barndt and the “teen” planned to meet at the Concord Mall and then travel to a Wilmington hotel for a sexual encounter on June 19, 2013.
On the morning of June 19, 2013, Barndt drove from his Sellersville residence to Wilmington, Delaware, where he checked into a local hotel. Barndt then drove to the Concord Mall, where he was met by a team of federal agents shortly after purchasing items at Victoria’s Secret. Federal agents seized a smartphone from Barndt, which was later found to contain approximately 15,000 images of teenage females who are either suggestively dressed or partially or completely nude. Most of these images appear to have been self-produced by the teenagers with smartphones.
Following the sentencing hearing, U.S. Attorney Charles M. Oberly, III stated: “This case serves as yet another example of the danger that lurks in cyber world. Mr. Brandt was ready, willing, and able to assault an underage child to fulfill his own twisted desires. Fortunately, he was taken off before he could carry out his criminal acts. Every parent should carefully monitor their child's use of the Internet so as to protect him or her from predators looking for vulnerable victims.”
"Predators like Mr, Barndt, stalk and attack the most vulnerable in our society, our children,” said John Kelleghan, special agent in charge of HSI Philadelphia. “As today’s sentencing shows, he will now answer for his despicable actions. HSI will not tolerate such acts, we will relentlessly and aggressively track down child predators to ensure our communities are safe."
This case is being investigated by the Department of Homeland Security, Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Edward J. McAndrew.
Former Bank Vice President Pleads Guilty To Attempted Online Enticement of a Minor
WILMINGTON, Del. – Kirk A. Simmons, age 59, of Newark, Delaware, pled guilty today to Attempted Coercion and Enticement of a Minor, in violation of federal law. Charles M. Oberly, III, United States Attorney for the District of Delaware, announced the guilty plea following a hearing in the United States District Court for the District of Delaware, where Simmons will be sentenced by United States District Judge Leonard P. Stark on June 24, 2014.
Simmons faces a mandatory minimum sentence of ten years, and a maximum sentence of life, in prison. He also faces a fine of up to $250,000 and a term of supervised release following his prison sentence of at least five years to life. Simmons also will be required to register as a sex offender in any U.S. jurisdiction in which he lives, works, or attends school.At the time of his arrest in this case, Simmons was employed as a Vice President, Market Information Manager II at Bank of America’s Newark, Delaware facility. Bank of America terminated Simmons’s employment following notification of his arrest and criminal conduct. According to his LinkedIn profile, at the time of his arrest, Simmons also was working as a “Professional private tutor” through WyzAnt Tutoring, “providing private in-home tutoring at the high school and college levels.”
According to the indictment and court documents, Simmons was arrested by the Delaware Child Predator Task Force on July 18, 2013, after he arrived at a Newark hotel to engage in sex acts with two persons he believed to be a 13-year-old girl and her biological father. Approximately one month earlier, in June 2013, Simmons responded to a “personals” advertisement for “fam love/taboo” on an adult social networking website. Simmons believed the advertisement had been posted by the father of a 13-year-old girl who the father would make available for sex with adult males. In fact, the “father” was actually an undercover Delaware State Police detective assigned to the Delaware Child Predator Task Force.
Over the course of the next month, Simmons and the undercover detective engaged in numerous online chat conversations in which Simmons indicated and graphically described that he wanted to engage in sexual activity with the purported “father” and his child. After a number of online conversations, Simmons and the “father” agreed to meet at a Newark hotel on July 18, 2013, where they both would engage in sex acts with the “13-year-old daughter.”
Shortly before that meeting, Simmons was under surveillance by the Delaware State Police and was observed driving directly from his workplace to the hotel. He was arrested by Child Predator Task Force members when he arrived in the hotel parking lot. In a recorded interview with a Delaware State Police detective, Simmons admitted that he intended to engage in sexual activity with the fictitious “father” and “13-year-old daughter” at the hotel. Simmons also admitted that he brought a digital camera with him to photograph the sexual activity.Following the plea hearing, United States Attorney Charles M. Oberly, III stated: “I want to thank the Delaware Child Predator Task Force for its outstanding work in this case. This was a time-intensive, month-long, online undercover investigation that resulted in the capture of a seemingly upstanding and successful businessman who planned to rape a child with her father’s help. I would also like to thank the U.S. Department of Homeland Security for its continued and successful partnership with our State law enforcement partners on this critically important work.”
"Protecting children from predators requires cooperation among law enforcement agencies," said Delaware State Prosecutor Kathleen Jennings. "That's why under Attorney General Biden's leadership the Delaware Child Predator Task Force, which is co-led by the Delaware Department of Justice and the Delaware State Police, regularly works across jurisdictional lines with local, state, and federal partners to track down and stop those who are seeking to hurt our kids."
"This case shows that exploitation of children has severe consequences for those who engage in these depraved activities,” said John Kelleghan, special agent in charge of HSI Philadelphia. “HSI is committed to investigating these cases, working alongside our agency partners to help protect the citizens of our neighboring communities.”
The case is being prosecuted by Assistant United States Attorney Edward J. McAndrew and investigated by the Delaware State Police and the United States Department of Homeland Security, Homeland Security Investigations.
Parker Woman Sentenced to Five Years in Federal Prison for AssaultRead the Press Release
PHOENIX – On Feb. 24, 2014, Ginger Louise Scott Holmes, 44, of Parker, Ariz., an enrolled member of the Colorado River Indian Tribes, was sentenced by U.S. District Judge Susan R. Bolton to 60 months in prison followed by three years of supervised release resulting from her plea of guilty to assault resulting in serious bodily injury.
On March 16, 2013, Holmes was recklessly operating a motor vehicle at a high rate of speed, when she struck the minor victim who sustained serious bodily injuries.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Colorado River Indian Tribes Police Department. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-0944-PHX-SRB
RELEASE NUMBER: 2014-012_HolmesFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Palatka Man Sentenced to More Than 8 Years in Federal Prison for Receiving and Possessing of Child PornographyRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard sentenced Travis Rocky Dixon (36, Palatka) yesterday to 8 years and 9 months in federal prison for receiving and possessing videos of child pornography using the Internet. In addition, he was ordered to serve a 10-year term of supervision, following his incarceration, and to register as a sex offender. A federal jury found Dixon guilty on November 15, 2013.
According to testimony and evidence introduced during the trial, during 2011, two different law enforcement officers downloaded videos depicting child pornography over the Internet from a host computer using Internet Protocol (IP) addresses that resolved back to Dixon’s residence in Palatka. On January 18, 2012, a federal search warrant was executed at the residence. FBI Forensic examiners entered the residence and discovered that Dixon’s computer was, at that time, actively downloading video files with titles indicative of child pornography. During an interview, Dixon told agents that he was the primary user of the computer, that he used a file sharing program to download video files of young girls, and that he had been looking at child pornography for about one year. A forensic analysis of Dixon’s computer revealed that it contained at least 64 videos depicting children engaged in sexually explicit conduct.
This case was investigated by the Federal Bureau of Investigation in Daytona Beach, Miami, and Jacksonville, the Clewiston (FL) Police Department, and the Putnam County Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Northern California Real Estate Investor Agrees to Plead Guilty to Bid Rigging and Fraud at Public Foreclosure AuctionsRead the Press Release
A Northern California real estate investor has agreed to plead guilty for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Felony charges were filed today in the U.S. District Court for the Northern District of California in Oakland against Charles Gonzales, of Alamo, Calif. Including Gonzales, a total of 44 individuals have pleaded guilty or agreed to plead guilty as a result of the department’s ongoing antitrust investigations into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
According to court documents, beginning as early as April 2009 until about October 2010, Gonzales conspired with others not to bid against one another, and instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in Alameda County, Calif. Gonzales was also charged with conspiring to commit mail fraud by fraudulently acquiring title to selected Alameda County properties sold at public auctions and making and receiving payoffs and diverting money to co-conspirators that would have gone to mortgage holders and others by holding second, private auctions open only to members of the conspiracy. The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions. The private auctions often took place at or near the courthouse steps where the public auctions were held.
“The Antitrust Division’s ongoing investigation has resulted in charges against 44 individuals for their roles in schemes that defraud distressed homeowners and lenders,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The division will continue to work with its law enforcement partners to vigorously protect competition at the local level.”
The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at Alameda County public foreclosure auctions at non-competitive prices. When real estate properties are sold at the auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, the conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner.
“The symbolism of holding illegitimate and fraudulent private auctions near a courthouse is deplorable,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office. “The justice system will continue to prevail in this ongoing investigation pursuing bid rigging and fraud at public foreclosure auctions.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victim if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
Today’s charges are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa and Alameda counties, Calif. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300, or call the FBI tip line at 415-553-7400.
Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
**The fraud charge(s) referenced in this press release were subsequently dismissed on the government’s motion.**
New Jersey Man Sentenced on Federal Bomb Threat ChargeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that William H. Klein, age 47, was sentenced today after pleading guilty to Interstate Communication with Threat to Injure charge.
According to United States Attorney Peter J. Smith, on July 5, 2013, Hershey Entertainment and Resorts received a call at approximately 9:52 p.m. in which a male caller stated, “If One Direction plays tomorrow, the stadium will blow up.” The stadium was placed on lockdown before the concert, a bomb sweep was performed and a bag check was performed on all patrons coming into the stadium.
The call was made from a New Jersey number. Further investigation determined that the number is assigned to a pay phone outside of a 7-Eleven convenience store located in Northfield, New Jersey. Through video surveillance the caller was positively identified as William H. Klein.
On February 25, 2014, the United States District Judge Yvette Kane sentenced Klein to eight months’ imprisonment followed by two years of supervised release with two months to be served on home detention with electronic monitoring.
The United States Attorney’s Office and the Federal Bureau of Investigation stands in close partnership with the local law enforcement community to identify, thoroughly investigate, and prosecute such criminal conduct.
This case was investigated by the Federal Bureau of Investigation and the Derry Township Police Department. Prosecution was handled by Assistant United States Attorney Daryl F. Bloom.
New Haven Man Sentenced to 41 Months in Federal Prison for Distributing CocaineRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FRANK DOUGHTY, also known as “Fresh,” 42, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 41 months of imprisonment, followed by three years of supervised release, for distributing cocaine.
According to court documents and statements made in court, this matter stems from “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms. More than 100 individuals were charged as a result of the investigation.
During the investigation, law enforcement officers received court-authorization to monitor three telephones used by Michael Smith, also known as “Smitty” and “Fingers.” DOUGHTY was intercepted on multiple occasions ordering distribution quantities of cocaine from Smith.
DOUGHTY has been detained since his arrest on May 22, 2012. On October 25, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, cocaine.
On January 13, 2014, a jury found Michael Smith guilty of one count of conspiracy to possess with intent to distribute, and to distribute, cocaine and cocaine base (“crack cocaine”), and one count of possession with intent to distribute, and distribution of, cocaine base. He awaits sentencing.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]National Award Honors Federal Prosecutor Tris Hunt in KansasRead the Press Release
KANSAS CITY, KAN. – Assistant U.S. Attorney Tris Hunt has been named Outstanding Prosecutor of the Year for his work with the High Intensity Drug Trafficking Area program, U.S. Attorney Barry Grissom said today.
The national award from the Office of National Drug Control Policy recognizes Hunt for his work with the Midwest HIDTA on a large scale investigation of methamphetamine trafficking that resulted in the prosecution of 17 individuals.
“Tris Hunt is an outstanding prosecutor,” said U.S. Attorney Barry Grissom. “He sets a high standard and he brings out the best in his colleagues.”
The award recognizes the prosecutor who has consistently developed and utilized an innovative or unique approach. Winners must demonstrate a commitment to the cooperative spirit of the task force approach, the timely development and application of legal tools and the arrest, prosecution and conviction of individuals engaged in illegal drug activities.
The award recognizes Hunt for his work with the Drug Enforcement Administration in Kansas City, Homeland Security Investigations and the Jackson County Drug Task Force, as well as many other law enforcement agencies.
The Executive Board of the Midwest HIDTA also recognized Hunt as the region’s Outstanding Prosecutor of 2013.
David Barton, Director of the Midwest HIDTA, said Hunt’s work has involved some of the more complex issues ever undertaken by the Department of Justice’s Criminal Division and the DEA-Investigative Technology section.
Muskogee Jail Superintendent, Assistant Superintendent Convicted of Civil Rights Violations and Excessive Force, False StatementsRead the Press Release
WASHINGTON - Today, a federal jury in the U.S. District Court for the Eastern District of Oklahoma in Muskogee, Okla., convicted Raymond A. Barnes, 43, and Christopher A. Brown, 32, the former jail superintendent and assistant jail superintendent, respectively, of the Muskogee County Jail (MCJ) on multiple counts of civil rights offenses related to allegations of excessive force on inmates at MCJ on or between August 2009 and May 2011. Brown was also convicted of making material false statements to the FBI.
Both Barnes and Brown were found guilty of conspiring to violate the rights of inmates housed at MCJ by assaulting inmates themselves or by directing other jailers employed by MCJ to do so. Specifically, the defendants did or caused the following to be done: unjustifiably strike, assault, harm and physically punish inmates at MCJ who were restrained, compliant and not posing a physical threat; organize “meet and greets,” whereby jailers would scare, punish and harm incoming inmates from neighboring counties by throwing and slamming the handcuffed inmates to the ground upon their arrival at MCJ; threaten to fire MCJ employees if they reported abusive behavior directly to the sheriff or to outside law enforcement authorities; require and encourage MCJ jailers to write incident reports that falsely justified uses of force and contained misleading or inaccurate accounts of what had occurred when force was used; and perpetuate an environment within MCJ that allowed unlawful beatings and assaults against inmates to continue indefinitely and without consequence.
Both defendants were also convicted of violating the rights of an inmate identified as J.R. when MCJ jailers slammed and threw J.R. head-first to the ground while he was handcuffed. Barnes was additionally convicted of violating the rights of a second inmate, G.T., for similar conduct. Brown was acquitted of violating the rights of G.T.
In addition, Brown was convicted of one count of making material false statements to the FBI. Brown falsely claimed that, during meet and greets, the incoming inmate was ordered out of the transport vehicle and then “gently placed” on the ground. But in fact, Brown knew at the time of his statement to the FBI that during these meet and greets the MCJ jailers routinely threw and slammed inmates to the ground even though the inmates were restrained and posed no physical threat.
“Our Constitutional system of government requires this nation’s jailers to abide by the laws they enforce, and to protect the Constitutional rights of all persons in their custody,” said Acting Assistant Attorney General Jocelyn Samuels of the Civil Rights Division. “Today’s verdict demonstrates that the Department of Justice will vigorously prosecute anyone who abuses their official power to harm the people in their custody.”
The defendants face a statutory maximum penalty of 10 years for each of the civil rights convictions. Brown faces a statutory maximum penalty of five years for making material false statements to the FBI.
This case was investigated by the Muskogee Resident Agency of the Oklahoma City Division of the FBI and prosecuted by Trial Attorneys Fara Gold and Dana Mulhauser of the Civil Rights Division.
Mother and Daughter Sentenced for Passing Counterfeit BillsRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Brenda Moody, age 47, and her daughter, Cierra Jackson, age 28, both formerly of Baltimore, today to 27 months and 18 months in prison, respectively, each followed by three years of supervised release. Judge Hollander also entered an order that Moody pay $347,700 in restitution and Jackson pay $140,600 in restitution.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County Sheriff Jay Fisher.
According to their plea agreements and court documents, Moody moved from Baltimore to the Miami area around 2007 or early 2008. Starting in at least May 2008, Moody obtained hundred dollar counterfeit bills from the leader of the scheme in Miami and distributed the counterfeit bills in Maryland. Moody recruited others, including her daughter, to pass counterfeit bills in Maryland. The conspirators converted the counterfeit currency to genuine currency by going to stores, buying $10 to $20 of products with a counterfeit $100 bill and receiving $80 to $90 in change. The conspirators would give $40 to $60 back to Moody for each counterfeit $100 bill they passed.
From May 2008 to late 2011, Moody passed and recruited others to pass hundreds of thousands of dollars in counterfeit bills, resulting in a loss of $347,700. From June 2008 to July 2010, Jackson passed counterfeit bills, resulting in a loss of $140,600.
The leader of the scheme, Alexis Palmer, who ran this conspiracy out of Miami, was sentenced in the Southern District of Florida federal court on January 9, 2014 to 10 years in prison. His four co-defendants, including two top lieutenants, were sentenced to between 51 and two months in prison.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service, Baltimore County Police Department and Baltimore County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked the U.S. Attorney’s Office for the Southern District of Florida for their assistance in the investigation and Assistant United States Attorney Justin S. Herring, who prosecuted the case.
Monroe Drug Dealer SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Joshua Smith, aged 29, of Monroe, Georgia, was sentenced by Chief U.S. District Court Judge C. Ashley Royal on Tuesday, February 25, 2014, to serve over 12 years (151 months) in Federal prison for distribution of oxycodone.Mr. Smith entered a plea of guilty to the charges on September 9, 2013. As part of his plea agreement, Mr. Smith admitted that on July 12, 2012, he sold Roxicodone (oxycodone hydrochloride) tablets to an undercover detective. Mr. Smith also admitted to other similar drug transactions with the undercover detective.
“Unfortunately, the Middle District of Georgia is not immune from the scourge of illegal prescription drug distribution. At least we can take some comfort in knowing that for the next 12 years, Mr. Smith won’t be peddling his pills on our streets or in our neighborhoods,” said U.S. Attorney Michael Moore.
The case was investigated by the City of Monroe, Georgia Police Department. The case was prosecuted by Assistant United States Attorney Danial E. Bennett.Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
McAlester Man Pleads Guilty to Three Counts of Video VoyeurismRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that KENNETH WAYDE ELKINS, age 55, of McAlester, Oklahoma, pled guilty to an Information charging him with three counts of Video Voyeurism, in violation of Title 18, United States Code, Section 1801.
The charges arose from an investigation by the McAlester Army Ammunition Plant Security and the Federal Bureau of Investigation.
The Information alleged that between July 1, 2013 and August 14, 2013, in the Eastern District of Oklahoma, in the special maritime and territorial jurisdiction of the United States, at the McAlester Army Ammunition Plant, the defendant, knowingly and intentionally captured images of the private areas of females without their consent while they were in an area in which they had a reasonable expectation of privacy, a restroom.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the defendant’s guilty plea, and ordered the completion of a presentence report. Sentencing will be scheduled upon its completion. The defendant remains on bond pending sentencing.
Assistant United States Attorney Dean Burris represented the United States.
Massachusetts Man Sentenced for Child Exploitation OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Michael Dupont, 37, of Westfield, Massachusetts, was sentenced on February 24, 2014, in United States District Court in Burlington, Vermont, to serve 36-months imprisonment following his guilty plea to one count of possession of child pornography. United States District Judge William K. Sessions III also ordered the defendant to serve a five-year term of supervised release and to pay a $100 special assessment.
According to court records and proceedings, Dupont used the Internet to access chat rooms where he would meet whom he believed to be teenage girls. Dupont and the girls would communicate in the chat rooms and by private messaging. The chats became sexual in nature and involved the girls sending to Dupont naked pictures of themselves. Images of one girl were found on Dupont’s computer.
United States Attorney Coffin commended the work of the Homeland Security Investigations, Department of Homeland Security, and the Vermont Internet Crimes Against Children Task Force. Mr. Dupont was represented by Assistant Federal Defender Steven L. Barth. The case was prosecuted by Assistant United States Attorney Barbara A. Masterson.
United States Attorney Coffin noted that this prosecution is part of the U.S. Department of Justice's Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney=s Offices and the Internet Crimes Against Children Task Force, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mark Lawrence Wilson SentencedRead the Press Release
The United States Attorney(s Office announced that MARK LAWRENCE WILSON was sentenced on February 20, 2014, to a term of 6 months in federal prison with three years of supervised release to follow, before U.S. District Judge Dana L. Christensen.
Wilson was sentenced in connection with his guilty plea to being an unlawful drug user in possession of firearms.
In an Offer of Proof filed with the Court, Assistant U.S. Attorney Paulette Stewart advised the court that on November 8, 2012, Mark Lawrence Wilson, an unlawful drug user of marijuana and cocaine, possessed 12 firearms and more than 5,200 rounds of ammunition in Flathead County. Stewart told the court that Wilson was a user of both cocaine and marijuana.The investigation was a cooperative effort of Homeland Security Investigations, Montana Division of Criminal Investigation, Drug Enforcement Administration Laboratory, Bureau of Alcohol, Tobacco and Firearms, and the Northwest Montana Drug Task Force.