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7 April 2014
St. Albans Man Sentenced to Federal Prison for Role in Marijuana ConspiracyRead the Press Release
HUNTINGTON, W.Va. – Richard Hughes, 54, of St. Albans, W. Va. was sentenced today to 46 months in federal prison followed by three years of supervised release, U.S. Attorney Booth Goodwin announced. Hughes previously pleaded guilty in January of 2014 to conspiracy to distribute marijuana. Hughes admitted that from at least August of 2010 through February of 2012, he received marijuana from Robin Slater, a large-scale marijuana trafficker, and sold the marijuana throughout the Southern District of West Virginia.
Hughes made significant profits from the sale of marijuana and previously forfeited approximately $77,000 in cash and several thousand dollars’ worth of vehicles and equipment that he admitted were proceeds of drug distribution.
Slater previously pleaded guilty to several federal charges, including conspiracy to distribute 100 kilograms or more of marijuana, and was sentenced to 35 years in prison.
The West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations and the Putnam County Sheriff’s Department conducted the investigation. Assistant United States Attorney Haley Bunn handled the prosecution. The sentenced was imposed by Chief United States District Judge Robert C. Chambers in Huntington.
Soldotna Resident Indicted on Tax ChargesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that James R. Back, 59, of Soldotna, Alaska, was indicted for filing false tax returns for 2006, 2007 and 2008, and willfully failing to file tax returns from 2009 through 2012. Back was arrested at the Ted Stevens Anchorage International Airport on Monday, April 7, 2014. On Tuesday, April 8, Back was arraigned before United States Magistrate Judge John D. Roberts. Chief United States District Court Judge Ralph R. Beistline has been assigned to the case for trial.
Back did not enter a plea, and did not decide whether or not to represent himself or retain legal counsel. Back was released pending trial under the supervision of the United States Probation and Pretrial Services Office on a $10,000 unsecured bond, and ordered to return to court on Friday, April 11, for the entry of pleas and the decision on representation.
According to the indictment, Back was employed as a pipeline technician for Alyeska Pipeline Service Company. However, in 2007 Back sent the IRS a false “Substitute for Form W-2, Wage and Tax Statement, Form 4852,” claiming that his wages were not income. The indictment alleges that Back filed tax returns for 2006, 2007, and 2008 that falsely reported to the IRS that he earned no income during those years, when in fact he had earnings that totaled nearly $400,000. Moreover, Back claimed on these false returns that he was owed refunds totaling $110,111.
The indictment further alleges that in 2008 Back provided a fictitious document entitled “Form
W-0” to his employer, asserting that his wages from the company were not “federally privileged.” In 2011, Back sent his employer a document purporting to “revoke” his Employee’s Withholding Allowance Certificate. Back willfully did not file tax returns for the years 2009, 2010, 2011 and 2012, even though his total earnings during these years exceeded $500,000.“Our tax system is predicated on the truthfulness of the individual taxpayer but some use fraud and trickery to cheat all of us,” said Kenneth Hines, Seattle Field Office Special Agent in Charge, IRS Criminal Investigation. “IRS special agents are doing their job to ensure the honest taxpayers do not have to pick up the tab for those who chose not to comply with our laws by filing false or frivolous tax returns.”
Back faces up to three years in federal prison and a maximum $250,000 fine on each of the three false return charges, and up to a year in prison and a $100,000 fine for each of the four failure-to-file charges. In addition, costs of prosecution are mandated by law in criminal tax cases.
The case is being investigated by special agents with IRS Criminal Investigation. The prosecution is being handled by Assistant U.S. Attorney Thomas Bradley of the U.S. Attorney’s Office in Anchorage, Alaska.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.Sex Offender Sentenced to 10 Months in Prison for Failing to RegisterRead the Press Release
PITTSBURGH – A Pittsburgh man has been sentenced in federal court to 10 months imprisonment to be followed by 15 years supervised release on his conviction of failure to register as a sex offender, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Eugene David, 32.
According to information presented to the court, between in and around July 2010, through on or about Aug. 8, 2013, David traveled in interstate commerce and knowingly failed to register and/or update a registration, as required by the Sex Offender Registration and Notification Act.
Assistant United States Attorney Amy L. Johnston prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Marshals Service for the investigation leading to the successful prosecution of Eugene David.
Seventh Former Officer Sentenced in Connection with Series of Assaults on Roxbury Correctional Institution InmateRead the Press Release
U.S. District Judge James K. Bredar sentenced Tyson Hinckle, formerly an officer at Roxbury Correctional Institution (RCI) in Hagerstown, Md., to serve 30 months in prison for conspiring with other correctional officers to assault Kenneth Davis, an inmate. Hinckle and RCI officers from three different shifts assaulted Davis in March 2008, in retaliation for a prior incident in which Davis struck an officer.
Hinckle pleaded guilty on Jan. 9, 2014, to conspiring to violate Davis’ civil rights. According to court documents filed in connection with his guilty plea, Hinckle acknowledged that, after he and other day shift officers conspired to assault Davis, they beat the inmate in order to punish him. Hinckle also admitted that this assault on March 9, 2008, was consistent with practices at RCI, where officers from three consecutive shifts would beat an inmate who had previously assaulted an officer. Finally, Hinckle admitted that he and other officers tried to cover up their involvement in the assault of Davis.
“Every person in America has the right to be free from cruel and unusual punishment,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department will continue to protect this right by prosecuting correctional officers who violate the rights of inmates.”
To date, 16 current or former officers at RCI have been convicted in connection with the series of assaults that inmate Davis suffered on March 8-9, 2008. Six former officers – Lanny Harris, Philip Mayo, Robert Harvey, Keith Morris, Dustin Norris and Ryan Lohr –have been sentenced by U.S. District Judge Bredar.
The case was investigated by the Frederick Resident Agency of the FBI and prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Sanjay Patel of the Civil Rights Division, with the assistance of Assistant U.S. Attorney Michael Cunningham of the U.S. Attorney’s Office for the District of Maryland.
Savannah Man Pleads Guilty to Armed Bank RobberyRead the Press Release
AUGUSTA, GA – An indictment was returned yesterday by a federal Grand Jury sitting in Savannah, Georgia against William Arnold Debow, 53, a federally licensed firearms dealer who was doing business as The Ponderosa Trading Company. Debow was charged with 28 counts of knowingly transferring a firearm to a convicted felon and with 10 counts of illegally transferring a handgun to out of state residents.
Knowingly transferring a firearm to a felon carries a maximum prison sentence of 10 years and a maximum fine of $250,000 for each count. Illegally transferring a handgun to an out of state resident carries a maximum 5 year prison sentence and a $250,000 fine for each count. United States Attorney Edward Tarver emphasized that the indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The case was investigated by the ATF. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Richmond Man Pleads Guilty to Heroin Conspiracy and Gun PossessionRead the Press Release
ALEXANDRIA, Va. – Philip Michael Morris (also known as “Trill Phil”), 27, of Richmond, Va., pleaded guilty today to conspiracy to distribute heroin and possession of a firearm in furtherance of drug trafficking.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after the plea was accepted by U.S. District Judge Claude M. Hilton.
Morris faces a mandatory minimum of ten years in prison and a maximum penalty of life imprisonment when he is sentenced on June 19, 2014.
In a statement of facts filed with the plea agreement, Morris admitted to working with several co-conspirators to obtain and redistribute heroin in Richmond, Va. Morris also possessed two firearms in furtherance of the conspiracy, both of which were seized by law enforcement during the investigation.
Several of the defendant’s co-conspirators previously have pleaded guilty. One co-conspirator, Deonte Lamone Kennedy (also known as “Chop Cold Train”), admitted that the group of heroin dealers discussed the significant risk of their customers dying of heroin overdose. Kennedy admitted that he told one of his co-conspirators to distance himself from the heroin that the group was selling because it already had caused one overdose death. Kennedy pleaded guilty on March 14, 2014 to conspiracy to distribute a kilogram or more of heroin and possessing a firearm in furtherance of drug trafficking, and he faces a mandatory minimum of 15 years in prison and a maximum term of life imprisonment when he is sentenced on May 29, 2014.
This case was investigated by the FBI’s Washington Field Office and the Fairfax County Police Department, with assistance from the Drug Enforcement Administration and the Richmond City Police Department. Assistant U.S. Attorney Lisa L. Owings is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Portland Sex Trafficker Sentenced to 204 Months in Federal PrisonRead the Press Release
PORTLAND, Ore. — Keith Lawrence McMurray, 32, of Portland, Oregon, was sentenced to 204 months in prison today by United States District Judge Marco A. Hernandez for sex trafficking a 17-year old Beaverton girl. On September 4, 2013, McMurray pleaded guilty to one count of sex trafficking a minor. Upon release from custody, McMurray will serve a 10-year period of supervised release. During his supervised release, he must abide by a number of conditions, including registration as a sex offender.
“Sex trafficking a minor continues to be a huge concern for this community,” said U.S. Attorney Amanda Marshall. “Young girls and boys in our community are preyed upon for commercial sex, and are used by traffickers as simply a way to gain money. We will continue to prosecute aggressively anyone who exploits, aids or recruits our children into this dark world.”
In imposing the 204-month sentence, Judge Hernandez noted that defendant’s objectification of the victim was extremely concerning.
The government alleged that McMurray recruited the victim into prostitution when she was 17 years old. He used various prostitution web sites to advertise the minor and even posed as a customer in order to promote her on one of the web sites. In addition, McMurray filmed sex acts with her during the time she was a minor. All of this was done while the defendant was on post-prison supervision.
This case stemmed from a coordinated investigation by the Federal Bureau of Investigation’s (FBI) Child Exploitation Task Force and Multnomah County Parole and Probation. The FBI’s Child Exploitation Task Force marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children through sex trafficking, as well as to identify and rescue victims. The case was prosecuted by Special Assistant U.S. Attorney JR Ujifusa.
Perry County Man Sentenced for Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn April 3, 2014, Ty W. Dusch, 50, of DuQuoin, was sentenced in United States District Court in Benton on a one-count indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Dusch, who had previously pled guilty to the methamphetamine offense, was sentenced to 96 months in prison, to be followed by 3 years of supervised release, and fined $200. The offense occurred between 2011 and June 2013 in Jackson and Perry Counties. Evidence at the plea and sentencing hearings established that Dusch and others were obtaining pseudoephedrine for use in the manufacture of methamphetamine. When officers executed a search warrant at a Murphysboro residence where Dusch was staying, they located methamphetamine and methamphetamine-making materials. At sentencing, the district court found that Dusch was responsible for 371.26 grams of pseudoephedrine. The district court increased Dusch’s sentence because Dusch violated the terms of his pre-trial bond.
The investigation was conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, and Drug Enforcement Administration. The DuQuoin Police Department also assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
New Jersey Man Convicted of ExtortionRead the Press Release
Contact: Gail Fisk Malone
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Patrick
M. Curley, 50, of Passaic, New Jersey, pled guilty today in U.S. District Court to extortion. Curley was indicted on March 21, 2013.According to court documents, in March 2010, Curley applied on-line for a job with
Vescom, a Hampden, Maine-based security firm. On April 21, 2010, Curley met Vescom’s
Senior Vice President for a job interview in New York. In e-mails and a voice message left after the interview, he expressed ongoing interest in the job. On April 27, however, he e-mailed
Vescom’s Senior Vice President and falsely accused her of sexual harassment and discrimination and threatened to sue. In the months that followed, both he and an attorney representing him contacted Vescom employees and staff counsel threatening to sue and take his claims to the media if they could not reach a financial settlement. Curley’s claims of sexual harassment and discrimination were false and were intended to extort money from Vescom.Curley faces up to two years in prison and a $250,000 fine, or both. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Federal Bureau of Investigation.
Multimillion Dollar Cocaine Conspiracy Results in Significant SentenceRead the Press Release
LAREDO, Texas – Jose Gomez-Ramirez, 32, of Nuevo Laredo, Mexico, has been ordered to prison for his role in a conspiracy to possess with the intent to distribute cocaine, announced United States Attorney Kenneth Magidson. Gomez-Ramirez pleaded guilty in May 2013.
Today, U.S. District Judge Diana Saldaña, who accepted the guilty plea, handed Gomez-Ramirez a sentence of 108 months in federal prison to be followed by a five-year-term of supervised release. He was also ordered to forfeit $5,303,660.
At the hearing, additional testimony was presented regarding his role in the organization. He had transported and delivered 123 kilograms of cocaine to a truck driver who was then to transport the cocaine to Dallas on Feb. 11, 2011. According to court documents, the drug trafficking organization for which Gomez-Ramirez worked transported more than 200 kilograms of cocaine from 2010 to 2011, much of which was intercepted by authorities en route to Dallas from Nuevo Laredo. The organization also attempted to transport more than $1.4 million in cash from Atlanta, Ga., to Nuevo Laredo.
Gomez-Ramirez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case is the result of a four-year Organized Crime Drug Enforcement Task Force investigation dubbed Operation Roadblock led by the Drug Enforcement Administration with the assistance of Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Marshals Service. Assistant U.S. Attorneys James Hepburn and Elizabeth Rabe are prosecuting.
Michigan Man Sentenced to 10 Years in Prison in Pill ConspiracyRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WV – A Michigan man was sentenced to ten years in prison for his role in a conspiracy to distribute prescription painkillers.
United States Attorney William J. Ihlenfeld, II announced that Malcolm TYLER, age 36, of Detroit, Michigan, was sentenced to 120 months in prison and three years of supervised release for “Conspiracy to Distribute Oxycodone” in the Wheeling area from late 2011 to Spring of 2012. TYLER admitted to being a source of supply of painkillers for a Wheeling-area drug dealer, who then redistributed the pills locally. U.S. District Judge Frederick P. Stamp, Jr., presided.
TYLER was remanded to the custody of the United States Marshal pending designation to a Federal institution. As a result of this conviction TYLER violated the terms of his state parole and will face additional prison time in Michigan once he has completed his federal sentence.
In a separate matter before Judge Stamp, Charles WILKES, age 28, of Wheeling, was sentenced to 70 months in prison and six years of supervised release for "Distribution of Crack Cocaine within 1,000 feet of the Heritage Port Playground." WILKES was remanded to the custody of the United States Marshal.
The TYLER and WILKES cases were prosecuted by Assistant United States Attorney Randolph J. Bernard and were investigated by the Ohio Valley Drug & Violent Crime Task Force, consisting of officers and agents from the Wheeling Police Department, the Ohio County Sheriff’s Department, West Virginia State Police-BCI, and the Drug Enforcement Administration.Meth Cook Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Miles Courtney Alexander, 31, of Grand Bay, Alabama, was sentenced today in federal court to 96 months in federal prison for his role in a methamphetamine manufacturing conspiracy. Alexander was arrested in September of 2012 as the result of a DHR welfare investigation at a residence on Judge Ervin Drive in Grand Bay. Court documents reflect that Alexander, along with his co-defendants Clarence Lee and Cecily Colvin, were arrested in a vehicle which arrived at the residence after DHR workers contacted the Mobile County Sheriff’s Office about a possible meth lab at the premises there. In testimony at the sentencing hearing today, Investigator Andrew O’Shea testified that sheriff’s deputies found elements of a meth lab in the trunk of the vehicle, driven by Alexander, along with propane tanks and gasoline cans. Investigator O’Shea also testified that one of Colvin’s minor children was in the vehicle with the defendants when the meth lab was discovered in the trunk, and that a firearm was discovered by the investigators on the scene under the front seat of the vehicle.
United States District Court Judge William H. Steele imposed the sentence after hearing the testimony. The judge also ordered that Alexander receive drug treatment while in prison, and when Alexander is released from custody, he will serve three years of supervised release. The judge ordered that Alexander also under testing and treatment for drug abuse while under supervision. The judge ordered that Alexander pay $100 in special mandatory assessments.
The case was investigated by the Mobile County Sheriff’s Office. It was prosecuted in the United States Attorney=s Office by Assistant United States Attorney Gloria Bedwell.
Media AdvisoryRead the Press Release
Montgomery, Alabama - n commemoration of National Crime Victims’ Rights Week (April 6-12, 2014), U.S. Attorney George L. Beck, Jr. will hold a press conference/reception to recognize organizations that have demonstrated an extraordinary commitment to supporting victims and providing victim services. The following organizations will be recognized:
- Alabama Crime Victims’ Compensation Commission, Montgomery, AL
- Family Sunshine Center, Montgomery, Alabama
- One Place Family Justice Center, Montgomery, Alabama
- Wiregrass Angel House, Dothan, Alabama
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Massachusetts Leader of Sophisticated, Violent Fraudulent Document Ring Pleads Guilty to Racketeering and Money LaunderingRead the Press Release
RICHMOND, Va. – Jose Rafael Murcia-Garcia, 34, a Mexican National who resided in Boston, Massachusetts, pleaded guilty today to Conspiracy to Engage in Racketeering and Conspiracy to Launder Money. Murcia-Garcia faces a maximum of 40 years’ imprisonment, a fine of $750,000, and three years of supervised release. Further, he is illegally within the United States and faces deportation following the service of his prison sentence.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; and Katrina W. Berger, Acting Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), made the announcement after the guilty plea was accepted by Magistrate Judge M. Hannah Lauck.
According to court papers, this defendant is connected to a Fraudulent Document Enterprise (FDE) previously prosecuted in the Eastern District of Virginia in United States v. Israel Cruz Millan, Case No. 3:10CR308. The FDE originally operated in the United States beginning prior to 2008 and continuing through November 18, 2010, and had cells in Richmond, Norfolk, Virginia Beach, and Manassas, Virginia; Fayetteville and Little Rock, Arkansas; New Haven, Connecticut; Mishawaka, Indiana; Lexington and Louisville, Kentucky; Chelsea, Massachusetts; St. Louis, Missouri; Chapel Hill, Greensboro, Raleigh, and Wilmington, North Carolina; Cincinnati, Ohio; Providence, Rhode Island; and Nashville, Tennessee. The criminal enterprise was dismantled within the United States on November 18, 2010. In the prior case and connected prosecutions, a total of 30 defendants were convicted. On February 16, 2012, United States District Judge James R. Spencer sentenced the overall leader, Israel Cruz Millan to 300 months’ imprisonment. On March 2, 2012, United States District Judge Henry E. Hudson sentenced Oliverez-Jiminez to two consecutive life terms in prison, after having been convicted by a jury of racketeering, murder, kidnapping, conspiracy to commit money laundering, and conspiracy to produce and transfer false identification documents.
According to court filings, the FDE restarted its operations while the Israel Cruz Millan, et al. case was still pending. Beginning at some point prior to February 2012, Manuel Hidalgo Flores, also known as “Chino,” “Chimuelo” and “Julio,” began managing the organization’s operations in the United States, supervising operations in Richmond, Virginia; Springdale, Arkansas; Boston, Massachusetts; Raleigh, North Carolina; Cincinnati, Ohio; and Pawtucket, Rhode Island. As in the previous case, the FDE produced high-quality false identification cards for distribution to illegal aliens. In most cities where the organization operated, Hidalgo Flores placed a cell manager to supervise a number of “runners,” the lower level members of the organization who distributed business cards advertising the organization’s services and helped facilitate transactions with customers. In his sworn Statement of Facts, Jose Rafael Murcia-Garcia, also known as “Juan,” admitted that, while working under Hidalgo Flores, he supervised runners operating in the Boston, Massachusetts cell.
The cost of fraudulent documents varied depending on the location, with counterfeit Resident Alien and Social Security cards typically selling for approximately $150. Each cell maintained detailed sales records and divided the proceeds between the runner, the cell manager, and the upper level managers in Mexico. In addition, the FDE used Western Union and MoneyGram to funnel criminal proceeds to Mexico.
The evidence during the Oliverez-Jiminez trial detailed how members of the organization sought to drive competitors from their territory by posing as customers in search of fraudulent documents and then attacking the competitors when they arrived to make a sale. According to court filings, the FDE continued those tactics in 2013. The First Superseding Indictment charges four FDE members, including Manuel Hidalgo Flores, with targeting a competitor in the Richmond, Virginia area on October 6, 2013. That planned attack was thwarted, however, by law enforcement intervention.
Counting this guilty plea, 34 members of this organization charged in the Richmond, Virginia federal cases have been convicted. Currently, Murcia-Garcia is scheduled to be sentenced on July 17, 2014, before United States District Court Judge James R. Spencer. Out of the 12 defendants arrested in the current case on October 30, 2013, 8 are scheduled to proceed to a jury trial on June 2, 2014.
The case was investigated by the Richmond and Norfolk offices of ICE’s Homeland Security Investigations (HSI), which falls under the Washington, D.C., office. ICE HSI received assistance from the Virginia State Police, Chesterfield County Police Department, and Henrico County Police Department. Assistant United States Attorney Michael Gill and Trial Attorney Maria Gonzalez Calvet, of the Criminal Division's Fraud Section, are 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.Marion Man Sentenced to over 9 Years for Possessing Child PornographyRead the Press Release
A man who possessed child pornography was sentenced April 4, 2014, to over nine years in federal prison.
James Sullivan, age 32, of Marion, Iowa, received the sentence after a January 7, 2014, guilty plea to one count of possession of child pornography. At the guilty plea hearing, Sullivan admitted that, in 2011, he knowingly possessed child pornography.
Sullivan was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Sullivan was sentenced to 110 months’ imprisonment. A special assessment of $100 was imposed, and Sullivan must also serve an eight-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by Homeland Security Investigations and the Marion Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-76.
Leader of Counterfeit Currency Ring Pleads Guilty in Federal CourtRead the Press Release
RICHMOND, Va. – Tarshema Brice, 34, of Richmond, Va., pled guilty today to manufacturing counterfeit currency. She faces up to 20 years in federal prison, to be followed by three years of supervised release when she is sentenced on August 15, 2014.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; and William Frantzen, Special Agent in Charge of the United States Secret Service, Richmond Field Office, made the announcement after the plea was accepted today by United States District Judge Henry E. Hudson.
Brice was initially charged, along with four others, in a Criminal Complaint filed on September 6, 2013. She was arrested in September and pled guilty today to a Criminal Information that was filed on March 24, 2014.
According to court documents, Brice obtained genuine Federal Reserve Notes in either one dollar or five dollar denominations, bleached them, and then printed the image from a genuine fifty or one hundred dollar note onto them. She began the counterfeiting operation in approximately March 2012 and remained involved in counterfeiting currency until her arrest in September 2013. In the Statement of Facts filed in support of her plea, Brice admitted she manufactured, or passed, between $10,000.00 and $20,000.00 worth of counterfeit currency.
Last month, Brice’s co-defendant, Norris Heath, who pled guilty to conspiring to manufacture counterfeit currency, was sentenced to 41 months in federal prison. In February 2014, co-defendant Abraham Emanuel Brotherson was sentenced to 1.5 years in federal prison for his role in aiding and abetting the conspiracy; and Warren Kelly Isaacs, who was charged with passing counterfeit notes, was sentenced to one year. La’Keesha Kee, who was also charged with passing counterfeit notes, was found guilty at a trial in February 2014. She is scheduled to be sentenced in May.
This case was investigated by the United States Secret Service. Assistant United States Attorney Angela Mastandrea-Miller prosecuted the cases 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.Last Major Defendant in 20-Defendant Meth Distribution Ring SentencedRead the Press Release
Two Defendants Still Await Sentencing, and One Remains at Large
BOISE – Andrew Polney, 52, of Boise, Idaho, was sentenced today by U.S. District Judge Edward J. Lodge to 130 months in prison followed by five years of supervised release for Possession with Intent to Distribute a Controlled Substance, U.S. Attorney Wendy J. Olson announced. Polney was also sentenced to 60 months in prison followed by three years of supervised release for Interstate Transportation in Aid of Racketeering Enterprise. The sentences will run concurrently.
Judge Lodge also ordered Polney to pay a $2,000 fine and a special assessment of $100 on each count.
According to court documents, the conspiracy involved two distribution cells in the Treasure Valley: one led by Jason Holmberg, the other by Andrew Polney. Kenneth Jones supplied multi-pound shipments of methamphetamine for transport to the Treasure Valley for distribution. The group operated from about June 2012, through the time of the various arrests on April 18, 2013, and May 23, 2013.
Nine co-defendants have been sentenced. Jason Holmberg, 38, of Middleton, Idaho, was sentenced to 180 months in prison for Possession with Intent to Distribute a Controlled Substance, and Interstate Transportation in Aid of Racketeering Enterprise. Kenneth Jones, 47, of Rio Linda, California, was sentenced to 130 months in prison for Possession with Intent to Distribute a Controlled Substance and Interstate Transport in Aid of Racketeering. Jerry Holmberg, 65, of Marsing, Idaho, was sentenced to 41 months in prison for Possession with Intent to Distribute a Controlled Substance. Randy Beal, 59, of Caldwell, Idaho, was sentenced to 57 months in prison also for Possession with Intent to Distribute a Controlled Substance. Cynthia Prado, 32, of Boise, Idaho, was sentenced to 30 months in prison for Interstate Transport in Aid of Racketeering. Randi Seferos, 25, of Boise, Idaho, was sentenced to 110 months in prison for Possession with Intent to Distribute a Controlled Substance. Patrick Siemsen, 56, of Meridian, Idaho, was sentenced to 60 months in prison for Interstate Transportation in Aid of Racketeering Enterprise. Doreen Obrien, 44, of Caldwell, Idaho, was sentenced to 66 months in prison for Possession with Intent to Distribute a Controlled Substance. Robbie Gallegos, 43, of Boise, Idaho, was sentenced to 33 months in prison for use of a communication device in committing a drug trafficking offense.
Of the other 10 defendants charged: five, who had lesser roles, have been sentenced to lesser penalties; one has pleaded guilty and will be sentenced tomorrow; one has pleaded guilty and will be sentenced in July; and sentencing for another has not yet been set. Charges against one defendant were dismissed, subject to being re-filed. One defendant remains at large.
The indictment is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration in conjunction with the Nampa Police Department and Boise Police Department. Other federal agencies participating in the OCDETF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Bureau of Land Management, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Kuna Man Pleads Guilty to Child Pornography ChargeRead the Press Release
BOISE - Ian Quincy Winn, 48, of Kuna, Idaho, pleaded guilty today to Receipt and Attempted Receipt of Sexually Explicit Images of Minors, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Winn engaged in online chats with an undercover Homeland Security Investigations (HSI) special agent between October 2012 and July 2013. During these chats, Winn spoke extensively about his interest in the torture, rape and murder of a (fictitious) six-year-old child whom the undercover agent claimed was his niece. Winn did not know the child was fictitious. In June, Winn asked the undercover agent to send him a photo of the fictitious six-year-old performing a sexual act.
HSI special agents obtained a search warrant and served it at Winn’s home in Kuna on August 12, 2013. They seized several computers and electronic storage devices containing child pornography, including sexually explicit images of prepubescent females. Agents sent the images to the National Center for Missing and Exploited Children (NCMEC), which maintains a database of previously identified victims of abuse. The NCMEC reported that the images found on Winn’s computer included known victims from California, Texas, Belgium, Missouri, Indiana, Washington, the Republic of Moldova and Ukraine. Winn confessed that he had been conducting online searches for erotic and sexually explicit images of young girls for about three to four years.
The charge of Receipt and Attempted Receipt of Sexually Explicit Images of Minors is punishable by from 5 years, up to 20 years in prison, a maximum fine of $250,000, and from 5 years to lifetime supervised release.
Sentencing is set for June 30, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by agents from the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), in Boise and North Platte, Nebraska, assisted by investigators from the United States Postal Inspection Service and the Kuna Police Department.
Homeland Security Investigations and the United States Postal Inspection Service are members of the Idaho Internet Crimes Against Children (ICAC) Task Force, a statewide coalition of local, state and federal law enforcement and prosecution agencies, focused on apprehending and prosecuting individuals who use the Internet to criminally exploit children. For more information about the Idaho ICAC Task Force and a list of all the participating agencies, visit www.icacidaho.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Knapp Pleads Guilty to Discharging Firearm During Commission of a Violent CrimeRead the Press Release
ST. GEORGE – Troy James Knapp, age 46, charged in a federal indictment in October with assaulting a federal officer and two violations of federal firearms laws, pleaded guilty Monday afternoon in federal court in St. George to use, carry and discharge of a firearm during and in relation to a crime of violence.
The count of conviction carries a potential life sentence with a 10-year minimum mandatory sentence. The plea agreement includes a recommendation that a 126-month sentence be imposed in the case. The sentence is subject to the approval of the Court. Sentencing in the case has been scheduled for June 9, 2014, at 10 a.m. in St. George.
Knapp was arrested in a remote area of Sanpete County on April 2, 2013. The indictment alleged that as events unfolded that day leading to his arrest, he assaulted federal officers engaged in the performance of their official duties. The officers included a Deputy United States Marshal, a U.S. Forest Service Law Enforcement Officer, and others who were assisting federal officers. The indictment also alleged he discharged an SKS-type assault rifle during the violent crime of assaulting a federal officer.
As a part of the plea agreement, Knapp stipulated that he carried, used, and discharged a rifle as he was attempting to flee from law enforcement authorities. He admitted that when he discharged the rifle, he intended to impede federal officers and those assisting them from apprehending him.
Federal prosecutors agreed to dismiss one count of assaulting a federal officer and one count of felon in possession of firearms and ammunition at sentencing as a part of the plea agreement.
Sanpete County Attorney Brody L. Keisel was designated a Special Assistant U.S. Attorney and assisted in the prosecution of the federal case. Several federal, state, and local agencies contributed to the investigation.
Kenyan Woman to be Sentenced for Marriage Fraud ConspiracyRead the Press Release
Contact: Gail Fisk Malone
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: U.S. Attorney Thomas E. Delahanty II and Bruce Foucart, Special
Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security
Investigations (HSI) in Boston will hold a joint press conference on April 8, 2014, at 3:30 p.m. at the U.S. Attorney’s Office, located at 202 Harlow Street, Room 111, in Bangor, regarding the sentencing of Margaret Kimani, 30, of Worcester, Massachusetts, and the marriage fraud conspiracy investigation that has resulted in felony convictions of 28 defendants in Maine since
2010. Launched in 2005 by HSI, the investigation identified over 40 sham marriages in the
Lewiston/Auburn and Newport areas between U.S. citizens from Maine and nationals of Kenya, Uganda, Zambia and Cameroon. The Maine residents were paid to marry the foreign nationals and to assist them in fraudulently seeking to obtain a marriage-based change in their immigration status to that of a lawful permanent resident, or green card holder.The press conference will be video-conferenced to the U.S. Attorney’s Office located at
100 Middle Street, East Tower, 6th Floor, in Portland. Members of the press in the southern part of the State may attend in Portland.Justice Department Asks Federal Court to Shut Down Louisiana Tax PreparerRead the Press Release
The United States filed a complaint today seeking to bar Joyce Bougere-Keyes, and her business, Joyce Tax & Financial Service LLC, from preparing federal tax returns for others, the Justice Department announced.
The civil injunction complaint, filed in the U.S. District Court for the Western District of Louisiana, alleges that Bougere-Keyes, of New Iberia, prepares federal income tax returns for customers that report fabricated and/or inflated business income and expenses to maximize the amount of the Earned Income Tax Credit her customers claim. Bougere-Keyes has also improperly claimed education credits for ineligible taxpayers. Since 2009, Bougere-Keyes has prepared over 7,500 individual income tax returns and the loss to the U.S. Treasury caused by her conduct could exceed $1 million.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2013 . The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
United States v. Joyce Bougere-Keyes, etc.
Complaint for Permanent InjunctionJury Convicts Palmer Man of Third Marijuana Grow and Forfeits the House That Concealed ItRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that on April 3, 2014, an Anchorage jury convicted a Palmer man of one count of manufacturing marijuana. The jury also returned a verdict forfeiting Dodds’ residence to the government because it facilitated his marijuana grow operation.
According to Assistant U.S. Attorneys Kim Sayers-Fay and Stephanie Courter, who prosecuted the case, Loren Kent Dodds, 48, of Palmer, Alaska, was convicted of a one count of manufacturing marijuana. Trial evidence demonstrated that Dodds made the lower level of his Palmer residence into a sophisticated hydroponic grow equipped with motorized lights and myriad timers, which were all powered by stolen electricity.
Dodds was convicted of having a marijuana grow in the same residence twice before, in 2008 and 1994. Dodds was still on probation for his 2008 marijuana cultivation and power theft convictions when police discovered the 2013 grow in the same residence. Dodds’ 2013 grow was his largest yet, with over 600 plants, ranging from starters to “mother plants” that were over seven feet tall. Dodds’ third marijuana grow came to law enforcement’s attention after a young boy who was living at Dodds’ residence asked a relative for a knife so he could help Dodds cut the stinky “lettuce.”
Dodds denied responsibility for the marijuana grow, telling investigators that he lived in a ramshackle motorhome offsite rather than in his more than 3,000 square foot residence located on several acres. Dodds claimed to have rented the residence to a couple whose last name he did not know and whose telephone number he did not have.
U.S. District Court Judge Sharon Gleason scheduled Dodds’ sentencing for June 20, 2014. Dodds faces a mandatory minimum sentence of ten years’ imprisonment for his repeat offense, and up to a maximum of forty years’ imprisonment, to be followed by at least ten years of supervised release. Dodds may also be fined up to $5,000,000. Because the jury returned a verdict finding that Dodds used his Palmer, Alaska, residence to facilitate his marijuana grow, Dodds will forfeit that house and real property to the government. The jury could not reach a decision on whether Dodds’ adjoining property also facilitated his manufacturing operation.
Ms. Loeffler commends the Drug Enforcement Administration, the Alaska State Troopers, and the State Drug Enforcement Unit task force members from both Wasilla and Palmer Police Departments for the investigation that culminated in Dodds’ conviction and the related forfeiture.Idaho Falls Man Sentenced to Prison for Passing Counterfeit Currency at Local BusinessesRead the Press Release
BOISE - Duane Gene Harpe, 45, of Idaho Falls, Idaho, was sentenced today to serve 12 months and 1 day in federal prison for passing counterfeit currency at Treasure Valley Businesses, U.S. Attorney Wendy J. Olson announced. United States District Judge Edward J. Lodge also ordered Harpe to serve three years of supervised release following his release from prison. Harpe pleaded guilty to the charge on January 14, 2014.
According to court documents, in April of 2013, Harpe traveled from Idaho Falls to Boise with numerous counterfeit $20, $50, and $100 bills. Harpe admitted to traveling to Boise in order to purchase heroin with the counterfeit money. When he was unable to pass the counterfeit bills in exchange for heroin, he used approximately $250 of counterfeit money at several fast food restaurants and gas stations in Boise. Judge Lodge ordered the defendant to pay restitution in the amount of $250 to the establishments in which he was successful in passing counterfeit bills.
The case was investigated by the Boise Police Department and the Secret Service.
Huntington Man Pleads Guilty to Selling Heroin from Jefferson Avenue ApartmentRead the Press Release
Huntington, W.Va. – A Huntington man who conspired with others to distribute heroin from the summer of 2013 to the end of 2013, pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Brandon S. Keaton, 28, pleaded guilty to conspiracy to distribute heroin before Chief United States District Judge Robert C. Chambers in Huntington.
On December 30, 2013, Keaton sold heroin to a confidential informant in the 1400 block of Jefferson Avenue in West Huntington. After the sale, Keaton entered Apartment #2 at 1416 Jefferson Avenue. The following day, December 31, 2013, officers with the Huntington Police Department searched the apartment where they found and seized more than 400 grams of heroin and $12,349 in cash. Keaton was arrested on January 26, 2014, and admitted to officers that he had been engaged in a conspiracy to distribute heroin from the West Huntington apartment for over six months.
Keaton faces up to 20 years in federal prison when he is sentenced on July 14, 2014.
The Huntington Police Department Special Emphasis Unit conducted the investigation with assistance from the Drug Enforcement Administration. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Greeneville Man Sentenced for Participating in A Conspiracy to Manufacture MethmaphetamineRead the Press Release
GREENEVILLE, Tenn.- Darrel Von Scrogum, 50, of Greeneville, Tenn., was sentenced on Apr. 7, 2014, by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 262 months in prison. Scrogum pleaded guilty to a July 2013 federal superseding indictment charging him with conspiracy to distribute methamphetamine.
The methamphetamine distribution conspiracy that Scrogum admitted to being a part of involved trafficking high purity methamphetamine brought from Mexico to drug traffickers in Georgia and then ultimately into northeast Tennessee.
The indictment and subsequent conviction of Scrogum and several conspirators was the result of an ongoing and collaborative investigation conducted by the Third Judicial Drug Task Force, Greeneville Police Department, Greene County Sheriff’s Department, Hawkins County Sheriff’s Department, Washington County Sheriff’s Department, Claiborne County Sheriff’s Department, Tennessee Bureau of Investigation, and Drug Enforcement Administration. Assistant U.S. Attorney J. Christian Lampe represented the United States.
Fort Hall Woman Pleads Guilty to Assaulting A Federal OfficerRead the Press Release
POCATELLO – Kayla Teton, 23, of Fort Hall, Idaho, pleaded guilty today in United States District Court to assaulting a federal officer, U.S. Attorney Wendy J. Olson announced. She was indicted on February 26, 2013.
On January 6, 2013, Teton was arrested on the Fort Hall Indian Reservation for intoxication. She was taken to the Fort Hall Correction Center where she refused to change into jail clothing, and slapped a Fort Hall Corrections officer in the face with her hand.
The charge is punishable by up to eight years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Teton is set for sentencing on June 18, 2014, by Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Fort Hall Police Department and the Federal Bureau of Investigation.
Former Vermont Woman, Now Living in the Bronx, Sentenced to 35 Months in Jail for Distributing HeroinRead the Press Release
Tristram J. Coffin, United States Attorney for the District of Vermont, stated that Chelle Soutiere, 38, was sentenced on April 3, 2014 by Chief U.S. District Court Judge Christina Reiss, to 35 months in prison for conspiring to distribute heroin in Vermont. Additionally, Soutiere was sentenced to three years of supervised release to be served at the conclusion of her prison term.
According to Courts records, Soutiere traveled from the Bronx on the MegaBus to the Burlington, Vermont area to sell heroin, oxycodone pills, and suboxone tablets. Between September of 2012 and March of 2013, she traveled to Vermont carrying controlled substances on a number of occasions. She sold controlled substances in Franklin and Chittenden counties, including St. Albans and Burlington, Vermont. This is her second federal drug conviction in Vermont.
Soutiere was arrested by the Southern Vermont Drug Task Force on March 28, 2013. On June 6, 2013, a federal grand jury charged her with conspiracy to distribute heroin as well as other charges. On December 19, 2013, Soutiere pled guilty to Count 1 of the federal Indictment, conspiracy to distribute heroin. She has been detained in prison or, alternatively, been in drug treatment since her arrest.
This case was investigated by the Northwest Drug Task Force. The United States Attorney, Tristram J. Coffin, commends that task force for its work. The case was prosecuted by Assistant U. S. Attorney, Nancy J. Creswell. Soutiere was represented by the Vermont Federal Public Defender, Michael Desautels.
Former U.S. Postal Employees Carol J. and Richard Pazder Plead Guilty to False Statement OffensesRead the Press Release
KNOXVILLE, Tenn. – On Apr. 4, 2014, Carol J Pazder, 61, and Richard Pazder, 67, of Maryville, Tenn., appeared in the U.S. District Court for the Eastern District of Tennessee at Knoxville. Carol J. Pazder pleaded guilty to providing false statements to obtain federal employees benefits. Her husband, Richard Pazder, pleaded guilty to aiding and abetting in the false statements.
Sentencing is set for 10:00 a.m., Jun. 20, 2014. Both face a term of five years in prison, followed by three years of supervised release, a fine of up to $250,000.00, and restitution.
The Pazders were both previously employed by the U.S Postal Service. Carol J. Pazder claimed false injuries at work. She and her husband Richard Pazder claimed the injuries were so painful she could only walk stand or sit for a few minutes at a time and was therefore unable to work and collected unemployment compensation. The couple was video-taped taking a cruise, disembarking at three ports of call and walking for hours at a time, followed by a trip to Disneyland.
In December 2013 an indictment, which included the aforementioned charges, was returned against the Pazders by a federal grand jury sitting in Knoxville, Tenn. This indictment was the result of an ongoing investigation by U.S. Postal Service, Office of Inspector General. Jennifer Kolman, Assistant United States Attorney represented the United States.
Former Grandview Woman Sentenced for $158,000 Scheme for False Tax RefundsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Grandview, Mo., woman was sentenced in federal court today for filing a false claim for a federal tax refund as part of a nearly $158,000 scheme.
Kelsey R. Jones, 35, of Houston, Texas (formerly of Grandview), was sentenced by U.S. District Judge Greg Kays to 18 months in federal prison without parole. The court also ordered Jones to pay $102,879 in restitution.
On Oct. 18, 2013, Jones pleaded guilty to making a false claim. Jones admitted that she filed 36 false individual income tax returns on behalf of herself and others, claiming approximately $157,998 in refunds, from February 2009 to January 2011. The $102,879 restitution payment represents the amount of fraudulent tax refunds that were actually paid out by the government.
Jones recruited individuals to file federal income tax returns under their own names. Jones created false and fictitious inflated income and revenue information for the individuals. Jones then used the false information to prepare and file fraudulent federal tax returns electronically with the IRS, which often claimed tax credits, such as the earned income tax credit, to which the individuals were not entitled.
Jones often had a portion of the fraudulent refunds – totaling $17,292 – direct deposited into one of her bank accounts, sometimes without the taxpayers’ knowledge.
This case was prosecuted by Assistant U.S. Attorney Jess Michaelsen. It was investigated by IRS-Criminal Investigation.Former Executive Director Caught with Hand in Congregation Beth El’s TillRead the Press Release
Today United States Attorney Laura E. Duffy announced the arraignment and guilty plea of Eric S. Levine for stealing hundreds of thousands of dollars from La Jolla’s Congregation Beth El synagogue.
Levine served as Beth El’s Executive Director from July 2007 to December 2013, overseeing the synagogue’s annual budget of nearly $2 million. Importantly, he also had access to, and control over, Beth El’s bank accounts, credit card accounts, and bookkeeping records. Levine admitted today that starting in February 2008, he began embezzling money from the synagogue for his own use. He continued his thefts until he left the position in December 2013. In total, Levine admitted misappropriating $394,872.99 from the synagogue over those five years.
Levine was able to carry out his embezzlement by virtue of his control over Beth El’s bank account and credit card. On most occasions, he simply used money located in the congregation’s bank account to pay his own bills directly. On other occasions, he transferred balances from his personal credit card to the congregation’s credit card account, and then paid his balances with the congregation’s funds.
In order to fool the congregation, its bookkeepers, and its executive staff, Levine falsified Beth El’s books and records to cover up his ongoing theft. He hid thousands of dollars in payments to himself by creating entries for legitimate expenses of the synagogue, in categories such as “Ritual Fund”, “Rabbi Emeritus,” “High Holidays,” “Purim Baskets,” “janitorial expense,” “utilities,” “landscaping expense,” and “repair / replace reserve fund.” His mischaracterization of payments made it appear that more of Beth El’s funds were spent on legitimate synagogue expenses than was actually spent. Levine also prepared false financial reports and annual budget proposals based on these inflated figures.
Instead of these legitimate expenses, the funds were used to pay a variety of Levine’s credit card charges, which included the following: Trips to Mexico, Las Vegas, and Canada; stays at the Mandalay Bay and Bally’s in Las Vegas, the Hilton Waikiki, the Grand Mayan Los Cabos and La Costa Resort Spa; monthly membership and regular $1,400 charges for a personal trainer at 24 Hour Fitness; and tickets from StubHub. Levine was able to outfit his home with expensive leather furniture and BBQ equipment, buy fancy jewelry, send his children to private school, and purchase exclusive Disney vacations.
As part of his plea, Levine will be required to pay Congregation Beth El back the funds he stole. He will next appear in court on June 27, 2014, at 9 a.m. before U.S. District Judge Dana M. Sabraw for sentencing as well as a hearing to determine the amount of restitution.
DEFENDANT Case Number: 14CR0879-DMS Eric S. Levine Age: 36 CHARGESMail fraud, Title 18, United States Code, Section 1341
Maximum penalties: 20 years in custody; $250,000 fine; 3 years of supervised release; mandatory order of restitution to victims
INVESTIGATING AGENCYFederal Bureau of Investigation
*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Former Erie Teacher Sentenced to 32 Years in Prison for Child Pornography OffensesRead the Press Release
Erie, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 32 years in prison and lifetime supervised release on his conviction of violating federal laws related to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
United States District Judge Cercone imposed the sentence on David Montgomery, 44.
According to information presented to the court, while Montgomery was employed as a teacher at Collegiate Academy in Erie, Pennsylvania, he made numerous videos and images that depicted him engaged in sex acts with a minor male. Montgomery also took sexually explicit photos of the boy. Montgomery’s illegal sexual contact with the victim began when the boy was approximately eight and the criminal conduct concluded when the boy was approximately fourteen. Montgomery gained access to the boy by paying for his travel to Erie from the victim’s residence outside of Pennsylvania. Montgomery and the victim also traveled together outside Pennsylvania on several occasions. Montgomery also took sexually explicit photos of another minor male who was approximately eight when the photos were taken. Montgomery also possessed numerous items of other child pornography.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Erie County Detectives Bureau, the Pennsylvania State Police and the Erie Police Department for the investigation leading to the successful prosecution of Montgomery.
Felon Fired Illegal Gun During Argument Outside Fast Food RestaurantRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Jarron Darvez Jackson, 30, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on April 16, 2011, Jackson got into an argument with a group of men inside a McDonald's restaurant in Erie, Pennsylvania, after which he went out to his car, retrieved a handgun, and then started shooting at the people he argued with inside, who were driving away in a car. Jackson was later identified as the person who possessed and shot the firearm on April 16, 2011, and this fact was confirmed by ballistic tests of the shell casings at the scene and Jackson’s .45 caliber handgun. Jackson’s possession of the firearm was unlawful because of his two prior felony convictions.
Judge Cercone scheduled sentencing for August 11, 2014 at 1:00 p.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Erie Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Jackson.
Federal Jury Convicts Pittsford Father and Son of Multiple Fraud ChargesRead the Press Release
Rochester, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that a jury has convicted Michael C. Kaufman and his son, Richard A. Kaufman, both of Pittsford, N.Y., of conspiracy to commit bank fraud, bank fraud and loan fraud. The charges carry a maximum penalty of 30 years in prison, a fine of $1,000,000 or both.
Assistant U.S. Attorneys Bradley E. Tyler and Craig R. Gestring, who handled the trial of the case, stated that between 2002 and November 2007, the defendants directed the Controller of American Industrial Sales, d/b/a RAK Industries, to provide false financial statements to Key Bank, and to the company’s outside accounting firm. The false financial statements significantly overvalued the accounts receivable and inventory, which were the two assets that Key Bank relied upon as collateral for a total loan credit of $2,000,000.
The loan proceeds were used by the defendants to fund their personal lifestyles including expensive homes, generous salaries and country club memberships. After the defendants defaulted on the Key Bank loan in the summer of 2007, they converted to their personal use approximately $53,000 of accounts receivable proceeds that were the property of Key Bank. As a result of the fraud scheme, Key Bank suffered an immediate loss of over $1.5 million.
The conviction is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation.
Sentencing is scheduled for July 16, 2014, at 3:00 p.m. before Judge Geraci.Federal Judge Strips Child Sex Offender of U.S. CitizenshipRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in New England, today announced that a federal judge in Hartford has revoked the citizenship of RORY DECORDOVA GAYLE, 44, formerly of Windsor and West Hartford.
According to court documents, GAYLE was born in Jamaica in 1969 and entered the United States in 1979 as a lawful permanent resident. In January 1999, GAYLE applied to become a U.S. citizen. On his Application for Naturalization, GAYLE answered “no” in response to the question “Have you ever . . . knowingly committed any crime for which you have not been arrested?” In an oral interview with a U.S. immigration official in June 1999, GAYLE swore that all of the information provided on his application was true and correct. GAYLE’s application was approved and, on August 6, 1999, he was sworn in as a naturalized U.S. citizen.
On October 30, 2000, GAYLE pleaded guilty in Connecticut Superior Court to two counts of first degree sexual assault of a minor for crimes committed between November 1996 and September 1999. GAYLE was sentenced to 20 years of incarceration, suspended after 15 years, a 10-year period of probation and lifetime registration as a sex offender. He is currently incarcerated with a maximum release date of July 14, 2014.
After an investigation by ICE Homeland Security Investigations uncovered GAYLE’s misrepresentations to immigration authorities, the U.S. Attorney’s Office initiated a denaturalization action against GAYLE in October 2012.
On January 29, 2014, U.S. District Judge Vanessa L. Bryant ordered GAYLE’s citizenship revoked on the ground that he lacked the good moral character necessary for citizenship, and that his application for naturalization concealed material facts and included willful misrepresentations.
ICE has initiated removal proceedings against GAYLE on the basis of his criminal history. On April 4, ICE issued an immigration detainer for GAYLE, requesting that the Connecticut Department of Correction transfer GAYLE to ICE custody upon the conclusion of his state sentence.
“For foreign-born individuals, citizenship is a privilege, not a right,” stated U.S. Attorney Daly. “Mr. Gayle corrupted the naturalization process by concealing his criminal past, a past that included the repeated sexual abuse of a minor. The revocation of his citizenship is entirely appropriate.”
“Someone who chooses to sexually abuse a child and then lie in order to gain U.S. citizenship possess a serious threat to the community, and we support the judge’s decision to revoke his citizenship,” said Bruce Foucart, special agent in charge of HSI Boston.
This matter was investigated by ICE Homeland Security Investigations and was prosecuted by Assistant U.S. Attorney Carolyn A. Ikari
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Federal Designer Drug Manufacturers and Dealers Sentenced to ImprisonmentRead the Press Release
PHOENIX – On April 2, 2014, Nicholas Pascal Zizzo, 27, of Phoenix was sentenced by U.S. District Judge David G. Campbell to 54 months imprisonment and ordered to forfeit approximately $1.3 million dollars and a business located at 1540 West Hatcher Road, Phoenix, after Zizzo pled guilty to conspiracy to manufacture and distribute controlled substance analogues.
A controlled substance analogue is a substance that is specifically intended for human consumption and is also substantially similar in chemical structure, pharmacological effect, or intended effect to drugs already scheduled under the Controlled Substances Act, like cocaine, methamphetamine, or methylenedioxypyrovalerone (MDPV).
According to Court documents, records, and testimony, Zizzo owned Consortium Distribution in Phoenix., from early 2011 through July of 2012. Consortium manufactured designer or synthetic drugs, called “Eight Ballz Bath Salts” and “Eight Ballz Ultra Premium Glass Cleaner.” These designer drugs had powerful cocaine and methamphetamine-like effects, were manufactured with raw chemicals imported from China and domestically, and were specifically designed to get people high, but were nevertheless intentionally and fictitiously mislabeled as innocuous household products in an attempt to circumvent federal consumer and drug laws. These products were then distributed and sold for great profit to “smoke shops,” independent gas stations, and convenient stores across the United States. Individual users would often purchase a ½ gram of these designer drugs for up to $60.00 and would snort, smoke, or inject these drugs in order to get a cocaine or methamphetamine-like high.
Zizzo was part of a larger nine defendant investigation and case that included co-defendant Michael Rocky Lane, who was found guilty by a jury after a 13 day trial in July 2013 of conspiracy to manufacture and distribute controlled substance analogues. Lane was previously sentenced to 15 years imprisonment by U.S. District Judge David G. Campbell and ordered to forfeit money and other items including vehicles and real estate. Lane was formerly an employee of Zizzo’s at Consortium Distribution before Lane left to open Dynamic Distribution in Tempe, Ariz., to directly compete with Consortium in the fall of 2011.
Additionally, on March 24, 2014, Andrew Scott Freeman, 27, of Minneapolis, Minn., was sentenced by U.S. District Judge David G. Campbell to 36 months imprisonment, after Freeman pled guilty to conspiracy to manufacture and distribute controlled substance analogues. According to Court documents, records, and testimony, Freeman worked as a salesman for Lane at Dynamic between April and July of 2012 and sold Dynamic’s designer drug products to stores and individuals across the United States. Prior to Freeman’s employment at Dynamic, Freeman owned Too Cool Glass Works in Minnesota, which manufactured glass smoking pipes, and also sold a powerful designer drug called “Bliss” bath salts. Freeman was captured by Chris Hansen in a May 2012 Dateline NBC expose on the dangers of “bath salts.” Freeman subsequently sold off his business to a chemical supplier in Minnesota before coming to Arizona and continued to work in the “bath salts” industry with Lane.
The operations at Consortium and Dynamic ceased on July 25, 2012, when the U.S. Drug Enforcement Administration executed a search warrant at those locations and arrested Zizzo, Lane, Freeman, and other designer drug salesmen and employees as part of Operation Log Jam. Operation Log Jam was a U.S. Department of Justice coordinated investigation of illicit designer or synthetic drug manufacturers and distributors across the United States.
The investigation in this case was conducted by the U.S. Drug Enforcement Administration and was assisted by the Arizona Department of Public Safety, the Phoenix Police Department, and the Buckeye Police Department. The prosecution was handled by Don Pashayan, Theresa Rassas, Monica Edelstein, and Mark Wenker, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-1419-PHX-DGC (LOA)
RELEASE NUMBER: 2014-021_Zizzo&FreemanFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Fargo Man Sentenced for Child Pornography ChargesRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on April 7, 2014, Aaron James Olson, 34, Fargo, N.D., was sentenced to nine years in prison for receipt and possession of child pornography before U.S. District Judge Ralph R. Erickson.
This case came to the attention of law enforcement after a North Dakota Bureau of Criminal Investigation’s special agent assigned to the Internet Crimes against Children Task Force discovered a computer geographically located in North Dakota sharing child pornography through a peer-to-peer network. A search warrant was issued for Olson’s residence where officers seized a computer and 37 DVDs collectively containing more than 300 videos of child pornography. Judge Erickson also sentenced Olson to seven years of supervised release and ordered him to pay a $200 special assessment to the Crime Victim’s Fund.
The case was investigated by Homeland Security Investigations, North Dakota Bureau of Criminal Investigation and the Fargo Police Department.
Assistant U.S. Attorney Jennifer Klemetsrud Puhl prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys’ 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 to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Fairview Heights Man Sentenced for Firearm OffenseRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Quinten M. Allen, 26, of Fairview Heights, was sentenced in the federal district court in East St. Louis on April 7, 2014, on the charge of being a previously convicted felon in possession of a firearm. Chief District Judge David R. Herndon sentenced Allen to fifteen months in prison, to be followed by three years of supervised release, and ordered Allen to pay a fine of $250 and a special assessment of $100.
On February 5, 2013, in East St. Louis, Allen knowingly possessed a firearm - one SCCY, model CPX-1, 9 mm. caliber, semi-automatic pistol with ten (10) rounds of 9 mm. caliber ammunition. Previously on July 26, 2012, Allen was convicted of the felony offense of Unlawful Possession of a Controlled Substance in the Circuit Court of the Twentieth Judicial Circuit in St. Clair County, Illinois.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case is being prosecuted by Assistant U.S. Attorney Liam Coonan.
Fairmont Residents Sentenced on Meth ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Three Fairmont residents have been sentenced to prison for their involvement in making methamphetamine.
United States Attorney William J. Ihlenfeld, II, announced that Daniel Joseph HANST, age 28, Brandi Rene SMITH, 27, and Anthony William OURS, 32, all of Fairmont, were each sentenced to 37 months in prison and three years of supervised release for “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” The Fairmont defendants, who are free on bond, will self-report to prison. This case was prosecuted by Assistant United States Attorney Brandon S. Flower and investigated by the Three Rivers Drug Task Force, consisting of officers from the Fairmont Police Department and the Fairmont State University Police Department. U.S. District Judge Irene M. Keeley presided.
In other matters before Judge Keeley, Michael John Luther GRIFFIN, age 34, of Clarksburg, was sentenced to 30 months in prison and three years of supervised release for “Distribution of Heroin.” GRIFFIN’s sentence was increased by the Court due to violations of his pretrial release. GRIFFIN was remanded to the custody of the United States Marshal pending designation to a Federal institution. The case was prosecuted by Assistant U.S. Attorney Shawn A. Morgan and investigated by the Greater Harrison County Drug and Violent Crime Task Force.
Luis Alberto GARCIA, age 34, and Victor ESTANGLE-FLORES, age 35, former inmates at United States Penitentiary at Hazelton, were sentenced to 24 months in prison for “Assault with a Dangerous Weapon with Intent to do Bodily Harm.” GARCIA and ESTANGLE-FLORES were remanded to the custody of the United States Marshal. These cases were investigated by the Special Investigative Services Unit at USP Hazelton.
Jovan MANNING, age 36 and formerly an inmate at FCI Gilmer, entered pleas of guilty and was sentenced to 18 months in prison, to run consecutive to his current 228-month sentence, for “Conspiracy to Commit Bribery of a Public Official” and “Bribery of a Public Official.” MANNING admitted to conspiring with a correctional officer at FCI Gilmer and another inmate to smuggle tobacco into the prison on multiple occasions. The correctional officer provided the tobacco to MANNING and the other inmate in exchange for having contacts on the outside of the prison send money totaling approximately $40,000. MANNING received money from other inmates when he sold the tobacco in the prison. This case was investigated by the U.S. Department of Justice, Office of Inspector General.
Rene LAPOINTE, age 44, an inmate at FCI Cumberland and former inmate at USP Hazelton, entered a plea of guilty and was sentenced to 15 months in prison to run consecutive to his current 18-month sentence for “Assault of a Correctional Officer Resulting in Injury.”
Douglas LAZO-TORRES, age 32, an inmate at USP Hazelton, entered a plea of guilty and was sentenced to 12 months in prison to run consecutive to his current 80-month sentence for “Possession of a Prohibited Object.” On September 25, 2013, staff at USP Hazelton removed a metal shank from LAZO-TORRE’s shoe.
The LAPOINTE and LAZO-TORRES cases were investigated by the Special Investigative Services Unit at USP Hazelton.
Each of the prison cases were prosecuted by Assistant U.S. Attorney Brandon S. Flower.MICHAEL J. WHITE, age 45, of Clarksburg, was sentenced to 5 years probation and ordered to make restitution in the amount of $23,795 to the Veterans Administration Medical Center for “Stealing Public Money.” This case was prosecuted by Assistant U.S. Attorney Robert H. McWilliams, Jr. and investigated by the Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division.
The following individuals entered pleas of guilty before Magistrate Judge John S. Kaull: TROY EVANS, age 38, of Michigan, entered a plea of guilty to “Possession with Intent to Distribute Crack Cocaine.” EVANS, who is in custody pending sentencing, faces up to 20 years in prison.
STEVEN JIMERSON, age 25, of Michigan, entered a plea of guilty to “Possession with Intent to Distribute Oxycodone.” JIMERSON, who is in custody pending sentencing, faces up to 20 years in prison.
The EVANS and JIMERSON cases were prosecuted by Assistant U.S. Attorney Zelda E. Wesley and investigated by the Mon Valley Drug & Violent Crime Task Force.
DONNA IRONS, age 37, of Clarksburg, entered a plea of guilty to “Distribution of Marijuana.” IRONS, who is free on bond pending sentencing, faces up to 5 years in prison. This case was investigated by Assistant U.S. Attorney Andrew R. Cogar and investigated by the Greater Harrison County Drug and Violent Crime Task Force.
MARLENA MAE LONG, age 49, of Sutton, West Virginia, entered a plea of guilty to “Theft of Mail by a Postal Employee.” LONG, who is free on bond pending sentencing, faces up to 5 years in prison. The case was prosecuted by Assistant U.S. Attorney Michael D. Stein and investigated by the United States Postal Inspection Service.Erie Accountant Stole Thousands from St. Vincent’s Hospital, Hilltop BeerRead the Press Release
ERIE, Pa - A resident of Erie, Pennsylvania pleaded guilty in federal court to charges of wire fraud, United States Attorney David J. Hickton announced today.
Julie A. Wozniak, 33, pleaded guilty to five counts before United States District Judge David S. Cerone.
In connection with the guilty plea, the court was advised that from March 2013 to June 2013, Julie A. Wozniak devised a scheme to defraud St. Vincent’s hospital and Hilltop Beer by abusing her position as an accountant. Wozniak utilized a Saint Vincent’s purchasing card and made 62 separate unauthorized purchases for her own personal benefit and use, in the total amount of approximately $47,521.03, and increased the credit limit on the purchasing card from $12,000.00 to $30,000.00 in order to increase the volume of unauthorized purchases she was able to make. Wozniak also fabricated St. Vincent’s accounting records for the purchasing card, thereby concealing the unauthorized purchases she had made. Further, Wozniak utilized her access to St. Vincent’s bank accounts and made 22 unauthorized Automated Clearing House (ACH) debits from Saint Vincent’s operating bank account at M&T bank, in an additional amount of approximately $32,940.65.
In addition to the fraud against St. Vincent’s, the court was advised that Wozniak operated a private accounting business called “Keeping You Balanced” and used her position as an accountant to steal money from Hilltop Beer. Wozniak advised the owner of Hilltop Beer how much money she needed to have transferred into the Hilltop Beer payroll bank account in order for her to make payroll tax payments. After transfers of those amounts would be made to the payroll account, the defendant, without the knowledge or consent of the owner of Hilltop Beer, would write checks to herself from the payroll account in the amount that was supposed to be paid to the IRS for the payroll taxes of Hilltop Beer. In order to conceal the payroll account funds she had unlawfully taken from Hilltop Beer and had not paid to the IRS, Wozniak made ACH debits from St. Vincent’s operating bank account with S&T bank, and paid the payroll taxes for Hilltop Beer out of the St. Vincent’s account.
Finally, Wozniak used her access and authority over St. Vincent’s bank account at First Niagara and made 9 ACH debits to pay on her personal Capital One credit card accounts and her personal Amazon credit account in an additional amount of $10,778.69.
Judge Cercone scheduled sentencing for August 11, 2014 at 11:30 a.m. The law provides for a total sentence of 100 years in prison, a fine of $1,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Wozniak on bond.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Wozniak.
Englishman Sentenced to 17 Years on Child Exploitation and Pornography ChargeRead the Press Release
Contact: Gail Fisk Malone
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that
Nicholas Cheese, 27, of Oxford, England, was sentenced today to 17 years in prison and 5 years of supervised release for producing child pornography. He pled guilty to the charge on October
18, 2013.Court documents reflect that in 2012, Cheese developed an on-line relationship with a 12- year-old girl from Maine, chatting and e-mailing with her and exchanging photographs. In June
2013, he traveled from England to Bangor and sexually assaulted her at a Bangor hotel. He recorded one of the assaults.The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland
Security Investigations, in Bangor and London, England; the Bangor Police Department; the
Penobscot County Sheriff’s Office; and the Thames Valley Police in Oxford, England.East St. Louis Man Sentenced for Firearm OffenseRead the Press Release
Follow @SDILNewsPhillip S. Miller, 23, of East St. Louis, Illinois, was sentenced on April 4, 2014, in federal district court, in East St. Louis, Illinois, on one count of possession of a stolen firearm, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Miller was sentenced to 8 months in prison, two years supervised release, fined $500, and ordered to pay a $100 special assessment. Miller pled guilty on November 15, 2013. A parole compliance check conducted by law enforcement officials at Miller’s home on January 15, 2013, led to the discovery of a Glock, model 22, .40 caliber semi-automatic pistol in a bedroom he occupied. Miller admitted to purchasing the firearm from a drug addict off the streets. The gun was reported stolen out of Clinton County in April 2012.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant United States Attorney Neal C. Hong prosecuted the case.
Drug Indictments Returned by Federal Grand Jury in WheelingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - A federal grand jury has returned indictments against alleged drug dealers from throughout the Ohio Valley.
United States Attorney William J. Ihlenfeld, II, announced that five indictments naming seven defendants were returned alleging the sale of heroin, oxycodone, cocaine and marijuana. The charges were brought by area drug task forces that receive federal funding from the Appalachia High Intensity Drug Trafficking Area (AHIDTA) initiative.
According to Ihlenfeld, the following individuals were charged by the grand jury:
WEAVER/KEYES
MARCEL D. WEAVER and HOLLY D. KEYES were charged in an eight count indictment with the distribution of heroin and crack cocaine in Chester, West Virginia in late 2013. WEAVER, age 29 of East Liverpool, Ohio, and KEYES, age 26 of Chester, are also alleged to have maintained a drug-involved premise. The investigation began due to a tip from the Youngstown, Ohio, office of the Drug Enforcement Administration (DEA).
WEAVER and KEYES face up to forty years in prison, a $2 million fine, and six years of supervised release. This case was investigated by the Hancock-Brooke-Weirton Drug and Violent Crimes Task Force, an Appalachia HIDTA-funded unit.
JAMES J. CARNEY
JAMES J. CARNEY, 22 years old, of Moundsville, was charged with five counts of distributing heroin near protected locations in Marshall County in late 2013. It is alleged that CARNEY sold heroin to a confidential informant within 1000 feet of Moundsville Central Elementary School on four occasions, and with making a fifth sale outside of a Moundsville restaurant. CARNEY faces up to forty years in prison, a $2 million fine, and six years of supervised release.
MILLER/BARKER
GLENN A. MILLER, age 37, and AMANDA M. BARKER, age 25, both of Moundsville, are charged with the distribution of oxycodone and Alprazolam near protected locations in Marshall County in 2012. MILLER and BARKER each face up to forty years in prison, up to a $2 million fine, and six years of supervised release.
DESIREE N. BURGE
DESIREE N. BURGE, age 30 of Moundsville, was charged with one count of distribution of oxycodone in 2013. BURGE faces up to 20 years in prison, a $1 million fine, and at least three years of supervised release.
The CARNEY, MILLER, BARKER, and BURGE cases were investigated by the Marshall County Drug Task Force, an Appalachia HIDTA-funded unit.
NELDA K. WHITE
NELDA K. WHITE, age 54, of Hundred, West Virginia, was named in a two-count Indictment charging her with “Conspiracy to Distribute Marijuana” and “Possession with Intent to Distribute Marijuana.” The U.S. Attorney’s Office is also seeking to forfeit $23,500 which was seized in January as part of the investigation. WHITE faces up to 5 years in prison on each of the charges.
These cases will be prosecuted by Assistant United States Attorneys Robert H. McWilliams, Jr., Randolph J. Bernard, and Stephen L. Vogrin.
District Man Sentenced to 6 ½ Years in Prison for Stabbing Two People in Separate Robberies Last Winter-Both Victims Robbed of Their Cell Phones After They Were Stabbed-Read the Press Release
WASHINGTON – Eric D. Smith, 43, of Washington, D.C., has been sentenced to a prison term of 6 ½ years on charges stemming from the stabbings of two people in separate robberies on back-to-back nights last December, one occurring outside of Gallery Place, and the other in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
Smith pled guilty in February 2014 to assault with a dangerous weapon, robbery, and attempt to commit robbery in the Superior Court of the District of Columbia. He was sentenced on April 4, 2014, by the Honorable Robert I. Richter. Upon completion of his prison term, Smith will be placed on three years of supervised release.
According to the government’s evidence, the first attack took place at about 6:50 p.m. on Dec. 18, 2013, in a rear alley behind the 600 block of H Street NW, near Gallery Place. Smith approached a man and stated “Money, money,” before stabbing the victim in the rear torso. The victim fell, and Smith went through his pockets, stealing a cell phone and other property.
The next night, Dec. 19, 2013, near 7th and H Streets NE, Smith and another man, Brandon Watts, approached a male victim and a female victim. Watts stated, “Give me your stuff,” and Watts asked Smith if Smith “still had the knife.” Smith then pulled out his knife, and stabbed the male victim in the thigh. Smith and Watts stole the man’s cell phone, and fled.
Officers from the Metropolitan Police Department (MPD), responding to a 911 call regarding the stabbing, located Smith and Watts a few blocks away. Both men were wearing ski masks. One of the men had made a throwing motion towards the ground; a knife and the victim’s cell phone were found on the ground where the objects were seen landing.
Smith pled guilty to assault with a dangerous weapon and robbery in the second attack, and attempt to commit robbery in the first attack. Watts, 24, of Washington, D.C., pled guilty to assault with a dangerous weapon and robbery in the second attack, and to receipt of stolen property in the first attack. Watts was sentenced on April 4, 2014 to a 43-month prison term. Watts will be placed on three years of supervised release following his prison term.
In announcing the sentences, U.S. Attorney Machen commended the work of the Metropolitan Police Department, which investigated the case. He also acknowledged the efforts of those who worked on the case at the U.S. Attorney’s Office, including Assistant U.S. Attorney James A. Petkun, who prosecuted the matter.
14-080District Man Sentenced to 6 ½ Years in Prison for Stabbing Two People in Separate Robberies Last Winter-Both Victims Robbed of Their Cell Phones After They Were Stabbed-Read the Press Release
WASHINGTON – Eric D. Smith, 43, of Washington, D.C., has been sentenced to a prison term of 6 ½ years on charges stemming from the stabbings of two people in separate robberies on back-to-back nights last December, one occurring outside of Gallery Place, and the other in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
Smith pled guilty in February 2014 to assault with a dangerous weapon, robbery, and attempt to commit robbery in the Superior Court of the District of Columbia. He was sentenced on April 4, 2014, by the Honorable Robert I. Richter. Upon completion of his prison term, Smith will be placed on three years of supervised release.
According to the government’s evidence, the first attack took place at about 6:50 p.m. on Dec. 18, 2013, in a rear alley behind the 600 block of H Street NW, near Gallery Place. Smith approached a man and stated “Money, money,” before stabbing the victim in the rear torso. The victim fell, and Smith went through his pockets, stealing a cell phone and other property.
The next night, Dec. 19, 2013, near 7th and H Streets NE, Smith and another man, Brandon Watts, approached a male victim and a female victim. Watts stated, “Give me your stuff,” and Watts asked Smith if Smith “still had the knife.” Smith then pulled out his knife, and stabbed the male victim in the thigh. Smith and Watts stole the man’s cell phone, and fled.
Officers from the Metropolitan Police Department (MPD), responding to a 911 call regarding the stabbing, located Smith and Watts a few blocks away. Both men were wearing ski masks. One of the men had made a throwing motion towards the ground; a knife and the victim’s cell phone were found on the ground where the objects were seen landing.
Smith pled guilty to assault with a dangerous weapon and robbery in the second attack, and attempt to commit robbery in the first attack. Watts, 24, of Washington, D.C., pled guilty to assault with a dangerous weapon and robbery in the second attack, and to receipt of stolen property in the first attack. Watts was sentenced on April 4, 2014 to a 43-month prison term. Watts will be placed on three years of supervised release following his prison term.
In announcing the sentences, U.S. Attorney Machen commended the work of the Metropolitan Police Department, which investigated the case. He also acknowledged the efforts of those who worked on the case at the U.S. Attorney’s Office, including Assistant U.S. Attorney James A. Petkun, who prosecuted the matter.
14-080District Man Found Guilty of Armed Robbery and Other Charges for Beating and Robbing A Man in Early Evening Attack-Defendant Stole Victim’s IPhone, Wallet and Keys-Read the Press Release
WASHINGTON – Marvin Jefferson, 25, of Washington, D.C., was found guilty by a jury today of aggravated assault while armed, armed robbery, and related firearms offenses for attacking a man in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Jefferson was found guilty by the jury following a trial in the Superior Court of the District of Columbia. The Honorable Michael Ryan scheduled sentencing for June 16, 2014.
According to the government’s evidence, in the early evening hours of Oct. 28, 2013, Jefferson attacked a man he had just encountered at a liquor store in the 1300 block of North Capitol Street NE. The victim, a 24-year-old engineering graduate of Howard University, had stopped at the store to get a beer. Jefferson, also inside the store, tried to take the victim’s iPhone. The victim put his iPhone in his jacket pocket, paid for his beer, and left the store.
Jefferson, however, followed the victim to the street. He tried to reach into the victim’s jacket to get the iPhone, and when the victim turned around, Jefferson began striking him. Jefferson hit the victim in the forehead with what appeared to be a gun, causing lacerations. Then, while the victim was in a disoriented and semi-conscious state, Jefferson robbed him of his phone, wallet and keys. The victim lost consciousness and dropped to the ground, chipping his tooth. Once he regained consciousness, he flagged down two police officers. A few days after the attack, he was able to identify Jefferson as his attacker.
In announcing the verdict, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Services Coordinator La June Thames; Victim/Witness Advocate Jennifer Clark; Paralegal Specialist Donville Drummond, and Assistant U.S. Attorney John Mannarino. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Clayton O’Connor, who secured the indictment, and John P. Fucetola, who prosecuted the case.
14-081District Man Found Guilty of Armed Robbery and Other Charges for Beating and Robbing A Man in Early Evening Attack-Defendant Stole Victim’s IPhone, Wallet and Keys-Read the Press Release
WASHINGTON – Marvin Jefferson, 25, of Washington, D.C., was found guilty by a jury today of aggravated assault while armed, armed robbery, and related firearms offenses for attacking a man in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Jefferson was found guilty by the jury following a trial in the Superior Court of the District of Columbia. The Honorable Michael Ryan scheduled sentencing for June 16, 2014.
According to the government’s evidence, in the early evening hours of Oct. 28, 2013, Jefferson attacked a man he had just encountered at a liquor store in the 1300 block of North Capitol Street NE. The victim, a 24-year-old engineering graduate of Howard University, had stopped at the store to get a beer. Jefferson, also inside the store, tried to take the victim’s iPhone. The victim put his iPhone in his jacket pocket, paid for his beer, and left the store.
Jefferson, however, followed the victim to the street. He tried to reach into the victim’s jacket to get the iPhone, and when the victim turned around, Jefferson began striking him. Jefferson hit the victim in the forehead with what appeared to be a gun, causing lacerations. Then, while the victim was in a disoriented and semi-conscious state, Jefferson robbed him of his phone, wallet and keys. The victim lost consciousness and dropped to the ground, chipping his tooth. Once he regained consciousness, he flagged down two police officers. A few days after the attack, he was able to identify Jefferson as his attacker.
In announcing the verdict, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Services Coordinator La June Thames; Victim/Witness Advocate Jennifer Clark; Paralegal Specialist Donville Drummond, and Assistant U.S. Attorney John Mannarino. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Clayton O’Connor, who secured the indictment, and John P. Fucetola, who prosecuted the case.
14-081Dickinson Man Pleads Guilty to Bank RobberyRead the Press Release
FARGO – U.S. Attorney Timothy Q. Purdon announced that on April 7, 2014, Rendell Charles Hardy, 41, of Dickinson, N.D., pleaded guilty to bank robbery and possession of a firearm during the commission of a violent crime before U.S. District Judge Ralph R. Erickson.
On Oct. 25, 2013, at approximately 9:30 a.m., Hardy and codefendant Satrone Rashard Boyd forcefully robbed Northland Financial in Medina, N.D., wearing Halloween masks. After quickly approaching the teller, Hardy, in possession of a handgun, demanded money from a bank employee after which the two men fled the scene. Boyd and Hardy used a stolen vehicle as a getaway vehicle. They were identified by video at a truck stop near the Star Lite Motel in Jamestown, N.D. The surveillance video showed them throwing the masks and a set of keys into the dumpster by the Star Lite Motel. Hardy was later apprehended in Dickinson, N.D. Boyd’s sentencing is set for April 14, 2014, at 1:30 p.m. in U.S. District Court.
Judge Erickson set Hardy’s sentencing for July 1, 2014, at 2:15 p.m. in U.S. District Court.The case was investigated by the Federal Bureau of Investigation together with the Stutsman County Sheriff’s Office, the North Dakota Highway Patrol, the Dickinson Police Department and the Fargo Police Department.
Assistant U.S. Attorney Keith Reisenauer is prosecuting the case.
Detroit Man Pleads Guilty to Heroin Distribution in HuntingtonRead the Press Release
DRUGS, GUN AND SCALES SEIZED FROM HUNTINGTON RESIDENCE
Huntington, W.Va. – Alton Tribble, 37, of Detroit, Michigan pled guilty today in federal court in Huntington to a single count of possession with intent to distribute heroin. On December 26, 2013, members of the Huntington Police Department executed a search warrant at 917 21st Street in Huntington and seized 18 individually wrapped baggies of a substance that field tested positive for heroin, a .32 caliber semi-automatic pistol, and a set of digital scales. That residence was used by Tribble to store heroin for resale in Huntington. Tribble faces up to 20 years imprisonment and a $1 million fine when he is sentenced on July 14, 2014.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Defendant Called “the Hacker” by Law Enforcement Sentenced to 68 Months and Ordered to Forfeit over $470,000Read the Press Release
PHOENIX – On April 7, 2014, Daniel David Rigmaiden, 34, formerly of Santa Clara, Calif., was sentenced by U.S. District Judge David G. Campbellto 68 months in custody (time served) and ordered to perform 100 hours of community service during a three-year term of supervised release. Restitution of over $395,000 was satisfied by the forfeiture and abandonment of Rigmaiden’s seized assets totaling over $470,000. Immediately prior to sentencing, Rigmaiden pleaded guilty to conspiracy, mail fraud and two counts of wire fraud.
“This sentence and asset forfeiture reflects the seriousness of Rigmaiden’s scheme to defraud the Internal Revenue Service,” stated U.S. Attorney John S. Leonardo. “The defendant tried to avoid apprehension through a sophisticated web of false identities, encryption, and anonymizing programs. Only through sustained collaboration and the coordination of the joint efforts of IRS-CI, FBI, USPIS and this office was Rigmaiden located and identified. The U.S. Attorney’s Office will continue to work with our law enforcement partners to identify and prosecute those who assume the identity of others in order to defraud the United States.”
“Tax-related scams are becoming more widespread and increasingly complicated, which is demonstrated by this case. IRS Criminal Investigation, along with our law enforcement partners, worked tenaciously to track down a sophisticated, tech savvy criminal, Daniel Rigmaiden, who had complete disregard and disrespect for the damage he inflicted on innocent victims and the American taxpayers,” said Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of Internal Revenue Service, Criminal Investigation.
“Individuals who participate in income tax fraud and identity theft of this magnitude should fully expect the FBI and its law enforcement partners to utilize all available resources to ensure they are brought to justice” said Douglas G. Price, Special Agent in Charge of the Phoenix Field Division of the Federal Bureau of Investigation.
“The successful prosecution in this complex case shows the commitment of the Postal Inspection Service to protect the public from criminal activity,” said Pete Zegarac, Inspector in Charge for the Phoenix Division of the Postal Inspection Service. “The Postal Inspection Service is proud to have partnered with the Department of Justice and fellow law enforcement agencies in this investigation.”
The investigation of Rigmaiden commenced in the fall of 2007 after the IRS began to detect a significant number of possibly related fraudulent tax returns. At that time, Rigmaiden’s identity and involvement were unknown. As a result, the investigation team referred to him as “The Hacker.” An undercover investigation ultimately led to his arrest and execution of search warrants in Northern California in August 2008. The searches revealed significant evidence related to a sophisticated scheme to obtain $5.2 million in tax refunds in the names of innocent third parties and deceased individuals. Rigmaiden ultimately caused the payment of approximately $1,904,321 in fraudulent refunds into accounts and debit cards controlled by him and his co-conspirators, as well as accounts controlled by undercover agents. Up until Rigmaiden’s arrest and identification through fingerprint analysis, his true identity was unknown to the investigation team. Through the team’s efforts, it was determined Rigmaiden had anonymously operated through the use of third-party computers throughout the United States, was involved in acquiring identity information of deceased and living individuals, including their social security numbers, and was using that information to conduct a complex electronic bulk tax filing scheme.
The investigation in this case was conducted by Internal Revenue Service – Criminal Investigation, Federal Bureau of Investigation, and U.S. Postal Inspection Service, with assistance from the Santa Clara, California, Police Department, Secret Service and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution was handled by Frederick A. Battista, Peter S. Sexton, and James R. Knapp, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-08-810-001-PHX-DGC (LOA)
RELEASE NUMBER: 2014-022_RigmaidenFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Connecticut Construction Company Agrees to Pay $2.4 Million, Admits Making False Statements to U.S.Read the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, Ted Doherty, regional Special Agent in Charge for the U.S. Department of Transportation’s Office of Inspector General, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Cheryl Garcia, Acting Special Agent in Charge, U.S. Department of Labor Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, New York Region, today announced that Plainville-based construction company MANAFORT BROTHERS, INC. (Manafort) will pay $2.4 million and implement internal reforms subject to independent monitoring to resolve a multi-agency joint criminal and civil investigation into alleged fraud committed by the company in connection with a public works project that commenced in 2007. As part of the resolution, Manafort admitted that it made false statements to the United States and the State of Connecticut Department of Transportation that disadvantaged business enterprises (DBE) performed subcontracted work on the federally and state funded relocation of Route 72 when, in fact, non-DBE performed the work.
The joint investigation revealed that, in 2007, Manafort submitted a bid to ConnDOT to serve as the general contractor on a federally and state funded project that involved a two-mile relocation of Route 72 in Bristol and Plainville, as well as the reconstruction of 2.4 miles of existing secondary roads. All qualifying bids were required to designate a percentage of work that would be performed by DBE, a requirement designed to provide socially and economically disadvantaged contractors, who have faced historical barriers to entry in the construction industry, with fair opportunities to compete for federally funded work.
In April 2007, the State of Connecticut Department of Transportation (ConnDOT) determined that Manafort was the apparent low bidder for the project with bid of approximately $39,663,000. According to the pre-award bid documents, Manafort represented to ConnDOT that a particular DBE, identified as “Company #1,” would perform work under the contract totaling approximately $3,064,372, or 70 percent of the overall DBE goal. In its pre-award submission package, Manafort stated that Company #1 would furnish all supervision, labor and materials in respect to the work covered by the subcontract agreement. This work involved being responsible for the project’s reinforcing steel, materials for structural steel, furnishing a pedestrian bridge that would span the new roadway and the majority of work for a large retaining wall adjacent to the new highway.
The contract for the project was officially awarded to Manafort in August 2007 based, in part, on its representations that Company #1 would perform the work described in Manafort’s pre-award submission. During the course of the project, it was determined Company #1 was not performing most of the work that Manafort claimed it was performing. In fact, the investigation revealed that Manafort was utilizing Company #1 essentially as a pass-through entity. That is, Manafort would negotiate with and supervise subcontractors that it procured to perform work that Company #1 was supposed to perform or procure and supervise. The Government maintains that Manafort arranged to pay those contractors through Company #1 to skirt DBE regulations.
Under the terms of a non-prosecution agreement and civil settlement agreement with the government, Manafort represented that it has undertaken various remedial measures to ensure compliance with the DBE programs for its current and future federally funded construction projects. These measures include establishing a position for an Ethics and Compliance Officer at Manafort, forming a DBE compliance committee that meets regularly to review and address DBE-related issues, mandating DBE compliance training for Manafort employees, deploying software to insure that DBE are qualified to perform the work that they bid, removing the Manafort personnel directly involved in the misconduct, and continuing to assist law enforcement in its investigation. Manafort has also agreed to pay a civil fine of $2,460,722.02.
“Manafort sought an unfair and illegal advantage over its competitors and deprived disadvantaged businesses of an opportunity to perform work on this taxpayer funded construction project,” said U.S. Attorney Daly. “The fine and the remedial measures mandated by this resolution demonstrate this Office’s commitment to ensuring fairness, transparency and equal opportunity in taxpayer funded projects. By entering into this agreement, Manafort recognized that it made false statements to the Government and committed to change. While our investigation of individuals continues, we agreed to this corporate resolution in order to reflect the company’s efforts to reform itself and to avoid further damage to its many blameless employees. We thank the U.S. Department of Transportation – Office of Inspector General, Connecticut FBI and the U.S. Department of Labor – Office of Inspector General for their excellent work on this important case.”
“The DBE program is a business assistance program of the U.S. DOT which helps economically and socially disadvantaged small businesses compete in the marketplace,” said Ted Doherty, regional Special Agent-in-Charge for the DOT’s Office of Inspector General. “DBE fraud harms the integrity of the program and adversely impacts law-abiding, small business contractors trying to compete on a level playing field. Working with our federal, state, and local law enforcement and prosecutorial partners, we will vigorously pursue those who violate the law, and expose and shut down fraud schemes that adversely affect public trust and DOT-assisted programs.”
“Manafort Brothers, Inc. sought to circumvent, misrepresent and outright deceive the U.S. government,” said FBI Special Agent in Charge Ferrick. “Contractors that work on government-funded projects, such as those with disadvantaged business enterprise requirements, need to operate above-board or be excluded from the bidding process. Manafort has agreed to undertake remedial compliance measures and that is a step in the right direction. The DOT, DOL and FBI will continue to investigate this matter until all outstanding issues are addressed.”
The non-prosecution agreement announced today addresses only the corporate criminal liability of Manafort, not potential criminal charges for any individual.
This matter is being investigated by the U.S. Department of Transportation – Office of Inspector General, the Federal Bureau of Investigation and the U.S. Department of Labor – Office of Inspector General, with assistance from the State of Connecticut Department of Transportation. The matter is being prosecuted by Assistant U.S. Attorneys Christopher Mattei and William Collier.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]