Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 17 January 2014
St. Francis Man Sentenced for Assault by Striking, Beating and Wounding and Simple AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man charged with Assault by Striking, Beating and Wounding and Simple Assault pled guilty to, and was sentenced, on January 15, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Westlee Ford, age 20, was sentenced to 12 months and 1 day in custody, and was ordered to pay $35 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on June 15, 2013, when Ford was at a party in which the victim was also present. There were verbal disagreements and Ford stabbed the victim with a knife. The victim had four stab wounds to his body as a result of the assault.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
Ford was ordered to self-report to the U.S. Marshals Service by noon on January 22, 2014.
Southeast Heli-Ski Company Enters Guilty PleaRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a commercially guided helicopter-skiing operation SOUTHEAST BACKCOUNTRY ADVENTURES (“SEABA”) located in Haines, Alaska, pled guilty in federal court in Anchorage to one count of trespassing on land managed by the Bureau of Land Management. The guilty plea was entered by part-owner Beb Anderson.
SEABA, a Haines, Alaska heli-ski operation pled guilty in Anchorage in U.S. District Court in front of Judge Timothy Burgess today to one count of Trespassing on BLM-managed land for operating heli-skiing in a closed area without a permit. According to pleadings filed by Assistant U.S. Attorney Aunnie Steward with the Court:
From 2002 to 2006, SEABA had an Special Recreation Permit (“SRP”) for a helicopter-skiing operation on certain BLM managed lands south of the Tsirku River and bordering Glacier Bay National Park near Haines, Alaska. In 2006, SEABA allowed this SRP to expire. Following the expiration of SEABA’s permit, BLM closed these lands to new heli-ski permitting pending an environmental study to determine the impacts of increasing the amount of permitted heli-ski operations. SEABA applied for a new permit for these closed areas in 2011. SEABA was informed of the closure and did not obtain a permit.
On March 3, 2013, a fatality occurred on BLM-managed land during a commercial heli-ski operation conducted by SEABA. A SEABA guide directed the helicopter pilot to land on BLM-managed land to ski a run on BLM-managed land. This land was within the closed area and SEABA did not have a permit to operate there. This ski run had also been utilized numerous times in 2012 by SEABA without a permit. In fact, SEABA had named the run for one of SEABA’s frequent customers. SEABA had included a map with this run in its application for the 2011 permit that was not approved.On the day of the fatality, March 3, 2013, the SEABA helicopter landed on the ridge top where the ski run starts on BLM-managed land. After the SEABA group exited the helicopter a cornice gave way under the weight of the group. One of the members of the group was killed in the fall that resulted from the cornice collapse. SEABA was not permitted for use on this ski run on BLM-managed land, and SEABA knew it was a violation of law to operate on this location without a permit.
Following this fatality, BLM initiated an investigation that involved interviews of SEABA employees, a review of SEABA’s flight following logs, maps, and GPS flight data collected by SEABA in accordance with its Haines Borough permit. This investigation revealed that despite knowing that SEABA was not permitted for helicopter-skiing on BLM-managed lands in this area, SEABA illegally operated commercially on BLM-managed lands on approximately 54 days in 2012 and 2013 out of 78 total days of heli-ski operations in these two seasons. Based on a percentage of SEABA’s gross revenue and the percentage of time SEABA operated commercially on BLM-managed lands in 2012 and 2013, SEABA would have owed a minimum of $11,556 in user fees to BLM that would have been charged if the area had been open to use.
The parties have agreed to recommend to the court that SEABA be sentenced to pay restitution in the amount of $11,556; pay a $10,000 fine; and serve a two-year term of probation during which time they have to make available the GPS data for the company operations to BLM. Sentencing has been scheduled for April 17, 2014.
Ms. Loeffler commends the BLM Office of Law Enforcement and Security for the investigation of this case with assistance from the Alaska State Troopers and the Haines Borough.
Snohomish County Man who Smuggled Protected Reptiles Sentenced to PrisonRead the Press Release
A Snohomish County man who participated in a wide ranging conspiracy to illegally traffic in protected reptile species was sentenced today to 12 months in prison and three years of supervised release, announced U.S. Attorney Jenny A. Durkan. NATHANIEL SWANSON, 36, together with five co-defendants, conspired to smuggle domestic species out of the United States and into Hong Kong and illegally import Asian species into the United States. One of the co-defendants, TAK MING TSANG, 24, a Hong Kong citizen residing in the United States, was sentenced to six months in prison and two years of supervised release. A third co-defendant, CHEUK YIN KO, 25, will be sentenced on Friday, January 24, 2014. Most of the illegally trafficked species were protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) and the Endangered Species Act. The estimated market value of the trafficked specimens was between $120,000 and $200,000. Many of the animals died during transport or shortly thereafter. At sentencing Chief U.S. District Judge Marsha J. Pechman said, “It is important that the United States participate with its world partners in sending the message that these are serious offenses.”
“The cruelty of this scheme is evident in the pictures of the turtles wrapped in socks and taped to keep them still and hidden from inspectors and shipping agents,” said U.S. Attorney Jenny A. Durkan. “Trafficking in wildlife is bad for the environment: it not only decimates endangered populations, it spreads invasive species and disease. I applaud the delivery service worker who first reported this scheme to law enforcement when she noticed a moving box and discovered a snake inside. But for that discovery, these traffickers might never have been caught.”
According to court filings, trafficking in protected species for commercial gain is an international problem, the full extent of which is unknown due in large part to the deceptive practices undertaken by SWANSON and his co-conspirators. While law enforcement authorities intercepted several shipments, most went undetected. Working with two foreign nationals residing in the United States, including his co-defendant TSANG, SWANSON illegally exported Eastern box turtles, North American wood turtles, and ornate box turtles to buyers located in Hong Kong. Additional domestic species exported by the co-conspirators included Gila monsters, Gulf Coast box turtles, and three-toed box turtles. SWANSON was also directly involved in importing several protected species directly from Hong Kong, including black-breasted leaf turtles, Chinese striped-necked turtles, big-headed turtles, fly river turtles, and an Arakan forest turtle. All of these species are protected under CITES. The Arakan forest turtle is critically endangered, having once been thought to be extinct. The illegal trafficking spanned a period of approximately four years.
Animals that survived and were seized by law enforcement have been cared for at local zoos and wildlife rehabilitation centers. As part of his sentence, SWANSON and his co-defendants will share in the cost of caring for the seized animals – about $28,500. The defendants forfeited any interest in the animals.
In asking for an 18 month prison sentence prosecutors argued that “Mr. Swanson and his co-conspirators engaged in a long-term scheme to illegally import and export numerous species of reptiles threatened with extinction and protected under an international convention and the laws of the United States. The actions of Mr. Swanson and his confederates can only be characterized as a concerted effort to profit from buying and selling contraband.”
On July 1, 2013, President Obama issued an Executive Order entitled Combating Wildlife Trafficking. As stated in the Order, “The survival of protected wildlife species such as elephants, rhinos, great apes, tigers, sharks, tuna, and turtles has beneficial economic, social, and environmental impacts that are important to all nations. Wildlife trafficking reduces those benefits while generating billions of dollars in illicit revenues each year, contributing to the illegal economy, fueling instability, and undermining security.” Globally, freshwater turtles and tortoises are being collected, traded and consumed in overwhelming numbers with no regard for sustainability of wild populations. Species are being used for food, pets, and traditional medicines.
The case was investigated by the U.S. Fish and Wildlife Service Office of Law Enforcement, with assistance from the U.S. Postal Inspection Service, and was prosecuted by Assistant United States Attorneys Matthew Diggs and Jim Oesterle.
Six Plead Guilty in Hydroponic Marijuana CaseRead the Press Release
PITTSBURGH – Six residents of Western Pennsylvania and California pleaded guilty in federal court to a charge of conspiracy to violate the federal drug laws, United States Attorney David J. Hickton announced today.
Stanley Van Bach, 45, of Oakland, Calif.; Quynh Tran, 30, of San Jose, Calif.; Caquaine McGriff, 40, of Pittsburgh, Pa.; Toron Brooks-Chapman, 35, of Pittsburgh, Pa.; Tom Ich Chieu, 35, of Pittsburgh, Pa.; and Poi Tran, 30, of Oakland, Calif., pleaded guilty to conspiracy to distribute high-quality hydroponic marijuana before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that co-conspirator Jennifer Chieu moved to Pennsylvania in 2010, and by October of that year was in the drug business, using her old contacts to ship her 10-20 pound packages of high-quality marijuana from California on a daily basis. Chieu then resold the marijuana for $2,400-$4,600 a pound, depending on quality, to a small network of dealers.
United States Postal Inspectors eventually identified more than 250 inbound drug packages, and in excess of 350 outbound parcels containing drug proceeds, with $12,000-$20,000 in each package. The total wholesale value of the marijuana was as much as $16 million, with the retail value being several multiples of that.
Postal inspectors and IRS, FBI, and Immigration and Customs Enforcement special agents observed Chieu making deals out of her Green Tree home and a nail salon she owned on Liberty Avenue in the Bloomfield section of Pittsburgh.
Between January and April 2011, postal inspectors served nine search warrants on outgoing parcels suspected to contain drug proceeds. Each of the parcels contained between $12,000-$20,000 in cash, with the total exceeding $143,000.
Wiretaps were approved for Chieu’s phones and several others between June and October 2011. Chieu and her co-conspirators spoke four languages on the wiretaps – Vietnamese, English, and two Chinese dialects - often switching languages in mid-sentence in an obvious attempt to hamper law enforcement agents and interpreters who might be listening.
Hundreds of hours of drug calls were intercepted between Chieu and her primary Oakland, Calif., drug supplier and other conspirators. On a daily basis, Chieu and her conspirators discussed how much marijuana would be sent, the quality or “brand name” of the product, and how much Chieu would charge for it here and how many packages of cash she planned to send to California the next day.
Tom Chieu, brother to Jennifer Chieu, assisted her in the conspiracy by driving her to drug deals, transporting multiple pounds of marijuana, and mailing cash drug proceeds to California, at Jennifer Chieu’s direction.
Poi Tran and Stanley Van Bach were secondary suppliers in California of marijuana sent to Jennifer Chieu.
Toron Brooks-Chapman and Caquaine McGriff, husband and wife, were local dealers of multiple pounds of marijuana they purchased from Jennifer Chieu.
Quynh Tran was the passenger in a van stopped on July 24, 2011, by the Pennsylvania State Police westbound on the Pennsylvania Turnpike near the Ohio line. More than $136,000 in cash drug proceeds was seized from the van.
About 3500 pounds of marijuana were distributed in the conspiracy. Large seizures of cash demonstrated the broad scope of this drug ring. In April 2012, Chieu and a conspirator were stopped in Utah for a traffic violation. Hidden within their car was more than one-half million dollars in cash. Both individuals refused to claim the cash, with Chieu telling officers she didn’t know how it got there.
Following the indictment of Chieu and 19 other individuals, Chieu was arrested in April 2012, at which time more than $70,000 was seized from her Green Tree home, and $100,000 from a safe deposit box. About a million dollars in cash was seized in this investigation, with homes and cars also seized for forfeiture to the government.
Fourteen of the 20 indicted individuals have now entered pleas of guilty and await sentencing. On Jan. 14, 2014, Jennifer Chieu entered a plea of guilty to drug and money laundering conspiracies.
Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant. The law provides for a total sentence of not less than five years to 40 years in prison and a fine of $5,000,000 or both, for Stanley Van Bach; up to 20 years in prison and a fine of $1,000,000 for Tom Ich Chieu; and up to five years in prison and a fine of $250,000 for Quynh Tran, Caquaine McGriff, Toron Brooks-Chapman, and Poi Tran.
Sentencing has been scheduled for May 20, 2014, for Quynh Tran and Caquaine McGriff; May 21, 2014, for Tom Chieu; May 22, 2014, for Toron Brooks-Chapman; May 28, 2014, for Stanley Van Bach; and June 27, 2014, for Poi Tran.
Assistant United States Attorney Gregory J. Nescott is prosecuting this case on behalf of the government.
The U.S. Postal Inspection Service, the Internal Revenue Service – Criminal Investigation, and the Federal Bureau of Investigation were the lead agencies in this case, and were assisted by Immigration and Customs Enforcement and the Pennsylvania State Police in this investigation that led to the prosecution of these defendants.
Scott Dees Sentenced to 51 Months for Fraud Involving Woodmen of the World Life InsuranceRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces that defendant Scott Dees of Repton, Alabama was sentenced to 51 months in federal prison and ordered to pay $796,000 in restitution to his victims.
Between 2001 and 2011, Scott Dees worked as an independent contractor for Woodmen of the World Life Insurance Company, a fraternal order based in Omaha, Nebraska. During this time period, Dees purported to sell annuities and life insurance policies on behalf of Woodmen to numerous elderly individuals in rural Alabama. However, rather than send the investors’ money to Woodmen, Dees stole nearly $800,000 and spent it on his own personal expenses. A majority of Dees’ victims were elderly, unsophisticated individuals, some of whom were in nursing homes.
In July 2013, Dees pled guilty to a single-count Information charging him with operating a mail fraud scheme. At sentencing, several victims told U.S. District Court Judge Granade about how much Dees’ actions have devastated the investors as well as his own family. After hearing from the victims and Dees, Judge Granade sentenced him to 51 months in federal prison, which was the top end of the advisory guidelines range. Dees had asked for mere home confinement.
U.S. Attorney Kenyen R. Brown was extremely pleased with the result. “Mr. Dees preyed on elderly, unsophisticated victims in rural Alabama. Fraud will never be tolerated, especially in cases like this where the victims were some of the most vulnerable individuals in our community. My office will continue to aggressively prosecute fraud schemes affecting this district, and we will do everything in our power to ensure fraudsters wind up in federal prison.”
This case was investigated by the Monroeville office of FBI-Mobile, and was prosecuted by the U.S. Attorney’s Office for the Southern District of Alabama.
Robert Scheaffer, Jr. Sentenced for Sexually Assaulting S Foster DaughterRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on January 17, 2014, before U.S. District Judge Brian M. Morris, ROBERT JAMES SCHEAFFER, JR., 49, of the Fort Belknap Indian Reservation, was sentenced to a term of 34 months imprisonment, five years supervised release, and a special assessment of $100.
Scheaffer was sentenced in connection with his October 21, 2013, guilty plea to Sexual Abuse of a Minor. In an Offer of Proof filed by Assistant U.S. Attorney Jessica Betley, the government stated it would have proved that on July 4, 2008, the victim was 14-years-old and the defendant was 44-years-old. At that time, the victim lived with the defendant as a foster child on the Fort Belknap Indian Reservation. The defendant is an Indian person and an enrolled member of the Fort Belknap Tribes, which is a federally recognized tribe.
According to the victim, on that date, the defendant yelled at her to come out to the kitchen. When the victim's back was turned to the defendant, he came up behind her and began to put his hands all over her body. The defendant undid the victim's jeans, pulled them down, and felt her vaginal area with his hands. He then inserted his fingers into her vagina. The victim was scared, cried, and continually told the defendant to stop. Eventually, the victim was able to return to her bedroom. The defendant spoke with the FBI and admitted that he put his hand inside the victim's underwear and fondled her vagina for approximately two minutes.
Previously Indicted Chambersburg Woman Charged with Two Counts of Tampering with A WitnessRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg handed up a second-superseding indictment charging Maria Colvard, age 48, of Chambersburg, on January 15, 2014, charging her with two counts of tampering with a witness in addition to previous charges of extortion, aiding and abetting false personation of an employee of the United States, and interference with commerce by threats.
According to U.S. Attorney Peter J. Smith, between February and May 2013, Colvard convinced an employee to claim to be a criminal investigator with the Internal Revenue Service in order to collect alleged taxes owed, gain a client list from a rival tax preparation business and to ultimately shut down the business, Cristina’s Tax Service, LLC. Maria Colvard is the owner of Tax Max LLC, a tax preparation service.
Colvard was first indicted in June 2013, arrested and ordered released pending trial. A superseding indictment was filed in November 2013. Colvard allegedly offered her employee $50,000 if she would take responsibility for the underlying crimes without cooperating with law enforcement or involving Colvard. On January 6, 2014, Colvard allegedly went to the business of her co-defendant’s husband and confronted her co-defendant in an attempt to get her co-defendant not to testify against Colvard. Part of the conditions of Colvard’s pre-trial release required Colvard not to have any contact, direct or indirect, with her co-defendant.
U.S. Attorney Smith stated the government will investigate promptly and prosecute to the fullest extent of the law allegations of witness tampering in federal cases.
If convicted of all five charges, Colvard faces up to 66 years’ imprisonment and fines of up to $1,250,000.
This case is being investigated by the United States Treasury Inspector General for Tax Administration (TIGTA) and is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 66 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
****Pocatello Man Sentenced in “Spice” Case for Conspiring to Launder MoneyRead the Press Release
POCATELLO –John D. Heim, 41, of Pocatello, Idaho, was sentenced yesterday to 37 months in prison followed by three years of supervised release for conspiracy to launder money, U.S. Attorney Wendy J. Olson announced. Judge N. Randy Smith of the Ninth Circuit Court of Appeals, sitting by designation as a district court judge, also ordered Heim to perform 100 hours of community service after he is released from prison. He pleaded guilty to the charge on September 26, 2013.
According to the plea agreement, between March 1 and September 14, 2013, Heim owned and operated Heim, Inc., a business engaged in the sale of “spice,” a smokeable material containing a Schedule I controlled substance analogue. Heim admitted that he and other individuals engaged in monetary transactions in excess of $10,000 from funds derived from the illegal sale and distribution of spice. According to the plea agreement, the total amount of funds derived from the unlawful activity is $163,534.
As a result of the conviction, Heim will forfeit to the government property he owns at 354 S. 5th, in Pocatello, and 572 Fort Hall Ave., American Falls, Idaho.
The case is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Bannock County Sheriff’s Office, with assistance from the Drug Enforcement Administration (DEA), Internal Revenue Service-Criminal Investigation, Pocatello Police Department, Bingham County Sheriff’s Office, Blackfoot Police Department, and Idaho State Police. Other federal agencies participating in the OCEDTF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigation (FBI), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), 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.
Phoenixville Man Charged with Distributing Child PornographyRead the Press Release
Jeffrey Stephen Horn, 43, of Phoenixville, PA, is charged by information, filed today, with distribution of child pornography, announced United States Attorney Zane David Memeger. The indictment charges Russell with one count of distributing child pornography between June 13 and June 17, 2012.
If convicted the defendant faces a maximum possible sentence of 20 years imprisonment.
The case was investigated by the Federal Bureau of Investigation (including members of the FBI Child Exploitation Task Force) and the New Britain Township Police Department and is being prosecuted by Assistant United States Attorney Albert S. Glenn.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who 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.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pataskala Man Pleads Guilty to Transporting Equipment Stolen from VA Medical Center in ChillicotheRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCOLUMBUS, OHIO – Curtis Clark III, 48, of Pataskala, Ohio pleaded guilty in U.S. District Court here today to transporting stolen generators and welding equipment worth $89,236.03 from the VA Medical Center in Chillicothe, Ohio and selling them to individuals in West Virginia.
Carter Stewart, U.S. Attorney for the Southern District of Ohio and Gavin McClaren, Resident Agent in Charge, U.S. Department of Veterans Affairs – Office of Inspector General (OIG) announced the plea entered today before U.S. District Judge Algenon L. Marbley.
According to court documents, a generator and welder belonging to the VA as well as two generators belonging to VA contractors, were stolen from the Chillicothe VA Medical Center in October 2011. In August 2012, the Mingo County West Virginia Sheriff’s Office contacted the OIG, telling them that the stolen items had been recovered in a storage garage in Holden, West Virginia.
Further investigation led to Clark, a patient at the VA at the time of the thefts, who admitted that he knew the men who stole the equipment and that he helped transport the equipment to West Virginia and sell it. Clark also admitted to pawning some of the items stolen from the VA at a Columbus pawn shop. Other construction equipment was recovered from Clark’s former residence in Pataskala.
Clark pleaded guilty to one count of interstate transportation of stolen property, which is punishable by up to ten years in prison, a fine of up to $250,000 and three years of supervised release. Judge Marbley will schedule a date for sentencing.
“This stolen equipment was intended for the care of our veterans at the Chillicothe VA Medical Center,” McClaren said. “We will tirelessly pursue those who steal from our nation’s heroes.”
U.S. Attorney Stewart commended the investigation by the VA Inspector General’s Criminal Investigation Division, the Chillicothe VA Medical Center Police who assisted with the investigation and Assistant U.S. Attorney Dale Williams, who is representing the United States in the case.
Owner of Child Support Collection Business Enters Guilty PleaRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Stuart C. Cole, 59, of St. Petersburg Beach, Florida, entered a plea of guilty on January 13, 2014, to conspiracy to commit mail fraud and wire fraud and conspiracy to commit money laundering. Mr. Cole entered his plea of guilty before Senior U.S. District Court Judge Hugh Lawson in Valdosta, Georgia.As a part of his plea, Mr. Cole admitted that from September 2007 through August 2009, he and others conspired to operate a fraudulent private child support collection business in Lake Park, Georgia and in other locations. Mr. Cole and his associates defrauded custodial parents who were to receive child support payments by inducing them to sign collection agreements with his company and offering to assist them in collecting child support payments from non-custodial parents, claiming that all fees connected with the collections would be the responsibility of the non-custodial parent. They would then use fraud, deception and coercion to get non-custodial parents and their employers to send funds for "child support" to Mr. Cole's business. Only a portion of the funds was ever given to the parents for the use of the children. The remainder was retained by Mr. Cole and his associates to lease homes, cars and boats. The conspiracy collected more than $2.3 million and retained approximately $1.2 million. Additionally, Mr. Cole admitted to laundering the collected funds through bank accounts including an account for a corporation, purported to be a church, as "love gifts".
The Court has scheduled sentencing for April 28, 2014 in Valdosta, Georgia. Mr. Cole faces a maximum possible sentence of up to twenty (20) years imprisonment and a maximum fine of $250,000, or both, on Count 1 of the indictment and up to twenty (20) years imprisonment, a maximum fine of $500,000.00 or twice the value of the property involved in the transactions, whichever is greater, or both. Mr. Cole also agreed to forfeit all assets obtained directly or indirectly through his criminal activity.
U.S. Attorney Michael Moore said, "Mr. Cole took advantage of victims who needed help the most. These were parents trying to raise children on their own and having to do it without the financial support these children were due from parents who were not living up to their financial obligations. On the one hand, Mr. Cole offered hope to the custodial parents, and then with the other hand, he snatched the money that they were counting on to support their children away from them."
"The actions committed by Mr. Cole are especially troubling, given that ultimately the victims were children. The Governor's Office of Consumer Protection is pleased to have initiated this investigation more than five years ago and to see this individual finally brought to justice," said John D. Sours, Administrator, Georgia Governor's Office of Consumer Protection.
"Those individuals who line their pockets with money gained through deceiving others should know they will not go undetected and will be held accountable," stated Special Agent in Charge, Veronica F. Hyman-Pillot. "IRS Criminal Investigation is committed to 'following the money trail' to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice".
"U.S. Postal Inspectors have protected the sanctity of the U.S. mails for over 200 years. Working closely with our law enforcement partners, we were persistent in our investigative efforts to bring to justice those responsible for victimizing the families in this particular case. The use of U.S. mail to defraud the American public cannot and will not be tolerated," said Keith A. Pixel, Inspector in Charge, Charlotte Division.
The case was investigated by the Internal Revenue Service Criminal Investigations, United States Postal Inspection Service and the Georgia Governor's Office of Consumer Protection. Assistant United States Attorney Robert D. McCullers is handling the prosecution for the Government.
For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Operator of D.C. Electronics Store Found Guilty of Trafficking in Stolen Property and Related Charges-Stolen IPhone Was Recovered from His Business-Read the Press Release
WASHINGTON –David J. Brown, Sr., 49, the operator of an electronics store in Northwest Washington, has been found guilty by a jury of charges stemming from the recovery of stolen property from his place of business, U.S. Attorney Ronald C. Machen Jr. announced.
Brown, of Capitol Heights, Md., was found guilty Jan. 16, 2014, following a trial in the Superior Court of the District of Columbia, of charges of felony trafficking in stolen property and misdemeanor receiving stolen property. The Honorable John McCabe scheduled sentencing for April 4, 2014. Under the District of Columbia’s voluntary sentencing guidelines, Brown faces a prison sentence of 10 to 28 months, and a statutory maximum sentence of 10 years.
According to the government’s evidence, on the afternoon of Nov. 22, 2011, the victim was walking northbound on North Capitol Street when her iPhone was snatched from her hand. The victim went to a nearby security guard and contacted police.
After the police arrived, the victim contacted her friend, who, using the “Find My iPhone” application, ultimately tracked the victim’s phone to the vicinity of “12 Volt Mobile Electronics,” the defendant’s business, located in the 300 block of H Street NW. Metropolitan Police Department (MPD) personnel responded to that location, where they made contact with Brown, and subsequently recovered the victim’s iPhone from him.
Brown initially provided an invoice to the police, claiming that the phone had been dropped off with his son to be serviced, but subsequently admitted that the invoice was a fake. Brown was arrested for receiving stolen property and then released pending trial.
On Dec. 2, 2011, MPD personnel returned to “12 Volt Electronics” to execute a search warrant. During the search, they recovered another iPhone that had been stolen in a “snatch robbery” similar to the first victim’s robbery.
In announcing the verdict, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department. He also praised the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigators Derek Starliper, John Marsh, and Durand Odom; Victim/Witness Advocates Jennifer Clark and Katina Adams-Washington; Paralegal Specialists Donville Drummond and Tameka Garcia, and Legal Assistant Sharece Muschettea. Finally, he praised the work of Assistant U.S. Attorney Thomas P. Swanton, who is prosecuting the matter.
14-017Oglala Woman Sentenced for Causing Death of ChildRead the Press Release
United States Attorney Brendan V. Johnson announced that an Oglala, South Dakota, woman convicted of Involuntary Manslaughter was sentenced on January 10, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Red Star-Benson was immediately turned over to the custody of the U.S. Marshals Service.
Elizabeth Red Star-Benson, a/k/a Elizabeth Shantelle Benson, a/k/a Elizabeth Red Star, age 27, was sentenced to 5 years of imprisonment, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
On August 31, 2012, at Porcupine, Red Star-Benson was driving under the influence with a blood alcohol content of .261 and rolled her vehicle on BIA Hwy 27 near KILI radio station. Her four-year old son, who was not properly restrained, was ejected from the vehicle and died at the scene from his traumatic injuries.
The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, and the South Dakota Highway Patrol. The case was prosecuted by Assistant U.S. Attorney Sarah B. Collins.
Obion County Man Sentenced to 120 Months in Prison for Involvement in Large Marijuana GrowoperationRead the Press Release
Memphis, TN – Ignacio Lazcano-Acosta, 52, of Obion County, Tennessee was sentenced yesterday to 120 months in federal prison for his role in one of the largest marijuana grow operations ever discovered in the state of Tennessee, announced United States Attorney Edward L. Stanton III.
According to the facts alleged in the indictment and revealed in court, on October 11, 2011, deputies with the Obion County Sheriff’s Department discovered a large outdoor marijuana grow encompassing 15 acres of plants that were being grown, harvested and processed for distribution. With the assistance of agents from the Drug Enforcement Agency (DEA), the plants were identified as marijuana, and DEA agents were able to identify Lazcano-Acosta as one of the persons involved with the operation.
Lazcano-Acosta pleaded guilty to one count of conspiracy to manufacture marijuana in violation of 21 U.S.C. § 846 on October 7, 2013 before Chief U.S. District Court Judge J. Daniel Breen. There is no parole in the federal prison system.
This crime was investigated by the Obion County Sheriff’s Office, the West Tennessee Drug Task Force, the Tennessee Bureau of Investigation, and the Union City Police Department. The case was prosecuted by Assistant United States Attorney Victor L. Ivy on behalf of the government.Nationwide Contract Therapy Providers to Pay $30 Million to Resolve False Claims Act AllegationsRead the Press Release
Contract therapy providers RehabCare Group Inc., RehabCare Group East Inc. and Rehab Systems of Missouri and management company Health Systems Inc. have agreed to pay $30 million to resolve claims that they violated the False Claims Act by engaging in a kickback scheme related to the referral of nursing home business, the Justice Department announced today. Additionally, as part of this settlement, the entities have agreed to restructure their business arrangement.
“Health care providers that attempt to profit from illegal kickbacks will be held accountable,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “We will continue to advocate for the appropriate use of Medicare funds and the proper care of our senior citizens.”
Between March 1, 2006, and Dec. 31, 2011, RehabCare allegedly arranged with Rehab Systems of Missouri to obtain Rehab Systems of Missouri ’s contracts to provide therapy to patients residing in 60 nursing homes controlled by Rehab Systems majority-owner James Lincoln. In exchange for this stream of referrals, RehabCare allegedly paid Rehab Systems a $400,000 to $600,000 upfront payment and allowed Rehab Systems to retain a percentage of the revenue generated by each referral.
“The Anti-Kickback Statute is intended to protect patients and federal health care programs from fraud and abuse,” said Acting U.S. Attorney for the District of Minnesota John Marti. “We will remain vigilant in pursuing entities that improperly further their financial interest at the expense of the Medicare Trust Fund.”
“This settlement sends a message to those who seek to improperly take advantage of the Medicare program,” said U.S. Department of Health and Human Services Office of Inspector General Special Agent in Charge Gerald T. Roy. “The Office of the Inspector General, Kansas City Regional Office will continue to work aggressively to eliminate this type of misconduct from our health care system.”
“The FBI will continue to work with its partners to combat this type of abuse,” said Special Agent in Charge of the FBI’s Minneapolis Office J. Chris Warrener. “It remains committed to the elimination of fraud to ensure the integrity of federal health care programs.”
This civil settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered more than $17.1 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement resolves allegations originally brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblower will receive $5.7 million as its share of the recovery in this case.
The case was handled by the U.S. Attorney’s Office for the District of Minnesota with assistance from the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Eastern District of Missouri, the Federal Bureau of Investigation and the U.S. Department of Health and Human Services Office of Inspector General. This action was supported by the Elder Justice and Nursing Home Initiative that coordinates the department’s activities combating elder abuse, neglect and financial exploitation, especially as they impact beneficiaries of Medicare, Medicaid and other federal health care programs.
The lawsuit is captioned U.S. ex rel. Health Dimensions Rehabilitation Inc. v. RehabCare Group Inc., et. al., Case No. 4:12-cv-00848 AGF (E.D. Mo.). The claims settled by this agreement are allegations only; there has been no determination of liability.
Nashville Gang Member Sentenced for Shooting in Public HousingRead the Press Release
Gerald Edwin Farmer, aka HK, 24, of Nashville, Tenn., was sentenced today to 210 months (17 ½ years) in prison, announced David Rivera, U. S. Attorney for the Middle District of Tennessee.
Farmer, a Rollin’ 40s Crips street gang member, pleaded guilty in June 2013 to being a felon in possession of ammunition which he used to shoot another person in the densely populated James Cayce public housing development, in Nashville, in November 2011. At that time, Farmer was on state probation for several offenses including an incident in which he shot at two other people. U.S. District Judge Todd Campbell ordered the federal sentence to run consecutively to a four year state sentence for that previous shooting incident.
“This sentence represents another case where we are working with our law enforcement partners to remove career criminals from our neighborhoods for long periods of time,” said U.S. Attorney David Rivera. “Farmer’s actions displayed a complete disregard for innocent life when he chose to fire several rounds in a densely populated area, near houses which were likely occupied by children and other innocent victims. When an individual resorts to this type of violence, a swift and appropriate response from the law enforcement community can be expected.”
According to the facts presented at the guilty plea hearing, Farmer fired several shots at an individual in the housing development near South 7th Street and Shelby Avenue in Nashville. The victim was struck multiple times and subsequently hospitalized for several weeks. Farmer fled the area, but when later arrested, he admitted that he was at the scene of the shooting. Farmer falsely claimed that a specific juvenile had been with him and that the juvenile was actually the shooter.
The subsequent investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, in conjunction with the Metropolitan Nashville Police Department, established that the juvenile was not even at the scene and that Farmer was the actual shooter. The firearm that Farmer used to shoot the victim was not recovered, but he was successfully prosecuted for possession of the ammunition which was used in the shooting.
ATF Special Agent in Charge Jeff Fulton said, “This joint investigation between ATF and the Metro Nashville Police Department illustrates the impact on reducing violent crime when agencies combine and coordinate their skills and resources. ATF remains dedicated to identifying, targeting, and investigating violent criminals who prey upon our citizens and lessen the quality of life in our neighborhoods. This investigation is an example of excellent investigative work and a job well done by the investigators.”
Farmer’s previous convictions included aggravated burglary, conspiracy to commit aggravated robbery, aggravated assault, and drug distribution, which qualified him as an Armed Career Criminal under federal law. Judge Campbell rejected Farmer’s request for concurrent sentencing with his state offenses, finding that Farmer had a history of violent criminal conduct and that this offense “nearly resulted in death.”
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Metropolitan Nashville Police Department. Deputy Criminal Chief Harold McDonough and Assistant United States Attorney Sunny A.M. Koshy represented the United States.
Midland Man Sentenced to Federal Prison for Possessing Child PornographyRead the Press Release
Midland resident Corey Dean Farmer, age 37, will serve 151 months in federal prison followed by a lifetime of supervised release for possession of child pornography announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Special Agent in Charge Dennis A. Ulrich, El Paso.
During yesterday’s sentencing hearing in Midland, U.S. District Judge Robert A. Junell also ordered that Farmer pay $157,143.23 restitution to his victims.
On November 1, 2013, Farmer pleaded guilty to the possession of child pornography charge. By pleading guilty, Farmer admitted using multiple peer-to-programs to search for and acquire images of child pornography beginning in approximately March 2012. Following the execution of a search warrant on May 9, 2013, at the defendant’s residence, HSI agents forensically discovered approximately 1,300 images depicting child pornography on Farmer’s computer. Farmer also acknowledged that because he did not turn off the “sharing” feature of his peer to peer software, other persons around the world were able to acquire CP images from his computer.“This is an appropriate sentence for an individual who criminally engaged in the sexual exploitation of children by freely trading their images with predators worldwide,” said Dennis A. Ulrich, special agent in charge of HSI El Paso. “HSI ranks this type of crime high in its mission priorities, and our agency will continue to dedicate resources to identify and bring to justice other child predators who victimize children in this manner."
Assistant United States Attorney Austin Berry prosecuted this case on behalf of the Government.
Middle Georgia Tax Preparer Enters Guilty PleaRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Jackie Elvine, a/k/a Jackie Young, 39, of Jeffersonville, Georgia, entered a plea of guilty on January 17, 2014, to health care fraud, aiding in the preparation of a false tax return and false claims against the Government. Ms. Elvine entered her plea of guilty before the Honorable Marc T. Treadwell, United States District Court Judge, in Macon, Georgia.As a part of her plea, Ms. Elvine admitted that she established Young's Financial Billing Service in Jeffersonville, Georgia in 2008 as a tax return preparation service. From 2008 to 2010, Ms. Elvine prepared and submitted hundreds of false tax returns. At least 61 of the returns included fraudulent tax credits for first time home buyers. The total amount of those claims was $283,683.00. Also claimed were numerous tax credits for higher education costs that Ms. Elvine knew were not legitimate.
Ms. Elvine also defrauded AFLAC and National Reimbursement Group by filing false health care claims. The amount of loss sustained by AFLAC is $147,483.56. The loss to National Reimbursement Group was $118,446.84.
The Court has scheduled sentencing for Ms. Elvine for April 9, 2014 in Macon, Georgia. She faces a maximum possible sentence of up to ten (10) years imprisonment and a $250,000.00 fine on Count 1, three (3) years imprisonment and a fine of $250,000.00 on Count 2 and five (5) years imprisonment and a fine of $250,000.00 on Count 3.
"Tax fraud and health care fraud end up hurting all of us. From higher health care costs and insurance premiums to depleting resources for tax credits aimed at helping deserving students and home buyers, these types of crimes are far-reaching. The path of greed in this case will likely lead to the federal prison," stated U.S. Attorney Michael Moore.
The case was investigated by the Internal Revenue Service Criminal Investigations, Department of Health and Human Services-Office of lnspector General, Georgia Department of Revenue and Twiggs County Sheriffs Office. Assistant United States Attorney Graham Thorpe is handling the prosecution for the Government.
For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Miami Patient Recruiter Pleads Guilty for <br /> Role in $190 Million Medicare Fraud SchemeRead the Press Release
A patient recruiter for a fraudulent Miami-area mental health company, American Therapeutic Corporation (ATC), pleaded guilty today for her participation in a $190 million Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Miami resident Mayelin Santoyo, 28, pleaded guilty before U.S. District Judge K. Michael Moore in the Southern District of Florida to one count of conspiracy to receive health care kickbacks. Sentencing has been scheduled for March 28, 2014. On Nov. 25, 2013, co-defendant Jose Martin Olivares, 36, also a Miami resident and patient recruiter, pleaded guilty to one count of conspiracy to receive health care kickbacks before U.S. District Judge Donald L. Graham for his role in this scheme. Olivares’s sentencing is set for Feb. 4, 2014.
According to court documents, Santoyo was a patient recruiter for the now-defunct ATC. ATC and its management company, Medlink Professional Management Group Inc., were Florida corporations headquartered in Miami. ATC operated purported partial hospitalization programs (PHPs), a form of intensive treatment for severe mental illness, in seven different locations throughout South Florida and Orlando.
Santoyo recruited Medicare beneficiaries to attend ATC’s PHP program in exchange for kickbacks in the form of checks and cash. The amounts of the kickbacks were based on the number of days each recruited patient spent at ATC. Santoyo knew that the patients she recruited for ATC were not qualified to receive PHP treatment.
ATC’s owners and operators paid millions of dollars in kickbacks to the owners and operators of various assisted living facilities and halfway houses, as well as to patient recruiters, like Santoyo, in exchange for delivering ineligible patients to ATC. According to court documents, to obtain the cash required to support the kickbacks to recruiters such as Santoyo, the co-conspirators laundered millions of dollars of payments from Medicare.
In related cases, ATC, Medlink and various owners, managers, doctors, therapists and patient recruiters of ATC and Medlink have already pleaded guilty or have been convicted at trial. In September 2011, ATC’s owner, Lawrence Duran, was sentenced to 50 years in prison for his role in orchestrating and executing the scheme to defraud Medicare.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case was prosecuted by Assistant Chief Robert A. Zink and Trial Attorney Anne P. McNamara of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.Miami Patient Recruiter Pleads Guilty for Role in $190 Million Medicare Fraud SchemeRead the Press Release
A patient recruiter for a fraudulent Miami-area mental health company, American Therapeutic Corporation (ATC), pleaded guilty today for her participation in a $190 million Medicare fraud scheme.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Miami resident Mayelin Santoyo, 28, pleaded guilty before U.S. District Judge K. Michael Moore in the Southern District of Florida to one count of conspiracy to receive health care kickbacks. Sentencing has been scheduled for March 28, 2014. On Nov. 25, 2013, co-defendant Jose Martin Olivares, 36, also a Miami resident and patient recruiter, pleaded guilty to one count of conspiracy to receive health care kickbacks before U.S. District Judge Donald L. Graham for his role in this scheme. Olivares’s sentencing is set for Feb. 4, 2014.
According to court documents, Santoyo was a patient recruiter for the now-defunct ATC. ATC and its management company, Medlink Professional Management Group Inc., were Florida corporations headquartered in Miami. ATC operated purported partial hospitalization programs (PHPs), a form of intensive treatment for severe mental illness, in seven different locations throughout South Florida and Orlando.
Santoyo recruited Medicare beneficiaries to attend ATC’s PHP program in exchange for kickbacks in the form of checks and cash. The amounts of the kickbacks were based on the number of days each recruited patient spent at ATC. Santoyo knew that the patients she recruited for ATC were not qualified to receive PHP treatment.
ATC’s owners and operators paid millions of dollars in kickbacks to the owners and operators of various assisted living facilities and halfway houses, as well as to patient recruiters, like Santoyo, in exchange for delivering ineligible patients to ATC. According to court documents, to obtain the cash required to support the kickbacks to recruiters such as Santoyo, the co-conspirators laundered millions of dollars of payments from Medicare.
In related cases, ATC, Medlink and various owners, managers, doctors, therapists and patient recruiters of ATC and Medlink have already pleaded guilty or have been convicted at trial. In September 2011, ATC’s owner, Lawrence Duran, was sentenced to 50 years in prison for his role in orchestrating and executing the scheme to defraud Medicare.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case was prosecuted by Assistant Chief Robert A. Zink and Trial Attorney Anne P. McNamara of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Sentenced to 30 Years in Prison in E. Idaho Meth Trafficking CaseRead the Press Release
POCATELLO – Raymond Camacho, a/k/a Jesus Mendoza-Nunez, 58, a Mexican national, was sentenced yesterday in United States District Court to 360 months in prison for possession with intent to distribute more than 50 grams of methamphetamine, U.S. Attorney Wendy J. Olson announced. Camacho will be deported at the conclusion of his prison term. He appeared before Judge N. Randy Smith of the Ninth Circuit Court of Appeals, sitting by designation as a district court judge. The defendant is the sixth person sentenced in the case.
Camacho pleaded guilty to the charge on January 24, 2013. According to the plea agreement, on November 24, 2011, his vehicle was stopped by law enforcement officers in Bannock County, Idaho. A search of the vehicle uncovered approximately three pounds of methamphetamine, which contained more than 50 grams of actual methamphetamine. Based on surveillance and information provided by others, it was determined that Camacho knew the methamphetamine was in the vehicle and intended to distribute to others.
Five co-defendants were sentenced in April and May 2013 to serve federal prison sentences for related drug trafficking offenses. Juan Aguilar, a Mexican national, was sentenced to 120 months; Juan Mendoza, of Menan, Idaho, to 102 months; Douglas I. McAdam, of Pocatello, to 33 months; and Marilyn Leones, of Pocatello, to 25 months. Jose Rios-Jimenez, a Mexican national, was sentenced to 16 months—time served—for possession of a firearm by a prohibited person and illegal entry of a removed alien.
The final defendant in the case, Eldon K. McConnell, 49, of Pocatello, pleaded guilty yesterday to possession with intent to distribute methamphetamine. According to the plea agreement, on November 30, 2011, McConnell was found in possession of 3.7 grams of methamphetamine at a hotel room in Chubbuck, Idaho. Sentencing is set for April 9, 2014, before Chief U.S. District Judge B. Lynn Winmill. He faces up to 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release.
Camacho is the fourteenth defendant to be sentenced to prison for crimes related to methamphetamine trafficking in federal courts in Idaho this week. Ten, including Camacho, were sentenced in federal court in Pocatello. Four were sentenced in Boise. They were sentenced to a total of 1,150 months or more than 96 years in federal prison.
“Methamphetamine is a dangerously addictive substance that does great harm to our Idaho communities,” said Olson. “Law enforcement officers in Idaho at all levels have worked tirelessly to identify, target and investigate major methamphetamine distribution rings in all parts of the state. The fourteen individuals sentenced in federal court this week received firm and just punishment.”
The case was investigated by Idaho State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Chubbuck Police Department.
Meth Lab Dismantled, Pawtucket Man Detained on Federal Drug Trafficking ChargesRead the Press Release
PROVIDENCE, R.I. – Sean Costigan, 51, of Pawtucket, was ordered detained in federal custody today by U.S. District Court Magistrate Judge Patricia A. Sullivan on federal drug trafficking charges, following an investigation by the Warwick Police Narcotics Unit and the R.I. DEA Drug Task Force into the alleged manufacture and distribution of methamphetamine by Costigan, announced United States Attorney Peter F. Neronha, Warwick Police Chief Colonel Stephen M. McCartney, and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s New England field division.
According to an affidavit in support of a criminal complaint filed with the court, in May 2013, Warwick Police, and DEA Drug Task Force agents and officers began an investigation into the alleged trafficking of meth by Costigan. It is alleged that on at least four occasions, between October and December 2013, an undercover law enforcement officer purchased between 1.4 grams and 6.8 grams of meth from Costigan for between $100 and $400 dollars.
On January 16, 2014, DEA agents, DEA Drug Task Force agents and officers and Warwick Police detectives executed a court authorized search of a room in a Newport inn allegedly rented by Costigan, where law enforcement discovered materials used in the manufacture and distribution of meth. Members of the DEA Clandestine Laboratory Tactical Team discovered and seized multiple items associated with a methamphetamine manufacturing operation.
Costigan, who was detained overnight at the Warwick Police Department, made an initial appearance in federal court this afternoon on a criminal complaint which charges him with four counts of trafficking methamphetamine.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Pamela E. Chin.
The DEA Drug Task Force is comprised of law enforcement agents and officers from DEA, Rhode Island State Police, and the Cranston, East Providence, Newport, Pawtucket, Providence, South Kingstown, Warwick and Woonsocket Police Departments.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Mercer County Teen Sentenced to 15 Years in Federal Prison for Armed Robbery of Farrell Convenience StoreRead the Press Release
PITTSBURGH – On Jan. 16, a Mercer County teen pleaded guilty and was sentenced in federal court on charges of violating federal Hobbs Act conspiracy and Hobbs Act robbery laws, United States Attorney David J. Hickton announced today.
Devine Campbell, 19, of Farrell, was 17 years old at the time that he robbed the B&M Market in Farrell on Dec. 20, 2011. Prior to pleading guilty, Campbell waived his right to a juvenile proceeding and agreed to be prosecuted as an adult. Campbell then pled guilty as an adult to two counts before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the Court learned that on Dec. 20, 2011, Campbell, acting together with Joshua Stewart, entered the B&M Market, a local convenience store in Farrell. Upon entering the store, Campbell, brandishing a .22 caliber handgun, fired off two rounds to scare the proprietor of the store. Campbell then forced the store owner to open his register and hand over more than $100 in cash. While Campbell did this, Joshua Stewart kept watch and served as a “lookout,” making sure that the police did not come in the store. In addition, Stewart stole cigarettes from the store. After Campbell secured the money, Campbell backed away from the store owner, and as he did so, he shot the owner once in the hip. Campbell and Stewart then fled from the store. The bullet fired by Campbell remains lodged in the store owner’s hip. Stewart has pleaded not guilty to the robbery of the B&M Market.
Subsequent to pleading guilty, Campbell waived a pre-sentence report and was sentenced by Judge McVerry to 15 years in prison. Under the terms of the plea agreement, 10 years of this sentence are to be served concurrently with Campbell’s state court sentence of 35 years to life imprisonment for second-degree murder. In November, 2013, a jury in Mercer County convicted Campbell of participating in the murder of local bar owner William Basilone. The remaining five years of Campbell’s federal sentence are to be served consecutively to Campbell’s state court murder sentence.
Assistant United States Attorney Eric S. Rosen prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, the Southwest Mercer County Police, and the Mercer County District Attorney’s Office conducted the investigation that led to the prosecution of Devine Campbell.
Mentmore, N.M., Woman Sentenced to Sixty-Three Months in Prison for Voluntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Bertha Damon, 44, an enrolled member of the Navajo Nation who resides in Mentmore, N.M., was sentenced to 63 months in federal prison followed by three years of supervised release for her voluntary manslaughter conviction.
On Sept. 16, 2013, Damon pleaded guilty to a felony information charging her with killing a man by striking him with a piece of firewood on the Navajo Indian Reservation on May 21, 2011. The guilty plea was entered without the benefit of any plea agreement.
According to court filings, Damon and the victim, her husband of 24 years, returned to their home after a night of drinking and began arguing. During the argument, Damon repeatedly struck the victim in the head with a piece of firewood. The victim died as the result of multiple blunt force traumas to the head.
Damon, who has been on conditions of release since entering her guilty plea, is required to surrender to a federal correctional facility to be designated by the U.S. Bureau of Prison within 60 days.
This case was investigated by the Gallup office of the FBI, the Crownpoint office of the Navajo Nation Division of Public Safety and the New Mexico State Police. Assistant U.S. Attorney Jacob A. Wishard prosecuted the case.Memphis Man Sentenced to 210 Months on Drug Conspiracy and Gun ChargesRead the Press Release
Memphis, TN – Lewis Gibson, 29, of Memphis, TN, was sentenced yesterday to 210 months in federal prison for his role in a conspiracy to distribute over 500 grams of cocaine, announced U.S. Attorney Edward L. Stanton III.
According to facts alleged in the indictment and revealed during court hearings, officers with the Memphis Police Department’s Organized Crime Unit received a tip that Gibson was selling a large amount of cocaine from his residence. Surveillance by the officers revealed a large amount of foot traffic consistent with illegal drug sales.
After obtaining a search warrant, officers detained Gibson and searched his home, where they recovered cocaine base (crack), heroin, powder cocaine, $10,000 in cash, and a .357 caliber pistol, in addition to other items.
On August 22, 2013, Gibson pleaded guilty to one count of conspiracy to distribute over 500 grams of cocaine and one count of being a felon in possession of a firearm. In addition to the 210 month sentence for conspiracy to distribute, U.S. District Judge S. Thomas Anderson sentenced Gibson to a concurrent term of 120 months for firearms possession. Gibson will further be required to serve four years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Memphis Police Department’s Organized Crime Unit. Assistant U.S. Attorney Jerry Kitchen represented the government.
This case was prosecuted under the authority of the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.Massillon Man Sentenced to More Than Three Years in Prison for Embezzlement and Tax EvasionRead the Press Release
A Massillon man was sentenced to more than three years in prison for defrauding four clients out of $442,072, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
David Lee Cheviron, 61,was sentenced to 38 months in prison by U.S. District Judge Donald C. Nugent. The judge also ordered Cheviron to pay $442,072 to the victims and $85,616 to the IRS.
Cheviron was a financial consultant at First Merit Bank, Huntington Bank, and JP Morgan Chase Bank between 2006 and 2010, during which time he embezzled the money from the clients. Cheviron converted the money for his own personal use. He also failed to report the funds he received from the schemes on his federal tax returns, according to court documents.
He pleaded guilty last year to one count each of bank embezzlement and tax evasion.
This case is being prosecuted by Assistant United States Attorney Vasile C. Katsaros, following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service.
Maryland Man Sentenced to 12 Years in Prison for Real Estate FraudRead the Press Release
Defendant targeted vulnerable properties, stole identities
using fraudulent probate court proceedingsALEXANDRIA, Va. – Colin Conroy Williams, 42, of Dayton, Md., was sentenced today to 12 years in prison, followed by three years of supervised release, for serving as the mastermind of a multi-year conspiracy to commit real estate fraud.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by United States District Judge Gerald Bruce Lee.
Williams pleaded guilty on Oct. 28, 2013 to conspiracy to commit wire fraud, wire fraud, aggravated identity theft and money laundering. According to court records, much of Williams’ criminal activity involved fraudulently selling homes that did not belong to the purported property owner. As part of this scheme, Williams first would identify vulnerable properties based on several characteristics—for example, because the property had significant tax liabilities, the true owners lacked a sophisticated understanding of real estate transactions, or the true titleholder had died recently and the rightful heirs had not come forward to claim the property.
Williams used a variety of means to identify the vulnerable properties. He sometimes would visit the D.C. tax courts to identify properties with overdue property tax bills, which was an indication that the rightful owner was not alive or able to pay those tax bills. In other instances, Williams would use open source or subscription services, such as ancestry.com and the D.C. property tax database, to determine whether a particular property was owned by a recently deceased person and whether that person had any living or nearby relatives.
After identifying vulnerable properties, Williams would manipulate the District of Columbia Probate Court process to have a co-conspirator appointed as a “personal representative” for the rightful owner. Williams then would arrange for that newly appointed representative to sell the property without the rightful owner’s knowledge. In so doing, Williams stole multiple identities belonging to the living or recently deceased property owners.
Williams conducted this scheme on at least five homes, including after he knew that he was under investigation by the FBI. He also conducted this scheme despite knowing that two of the actual homeowners were alive. Nevertheless, once the properties were sold, Williams would keep hundreds of thousands of dollars in proceeds for himself, which he laundered to buy expensive cars and fancy jewelry.
Before Williams began conducting this “personal representative” scheme, he repeatedly engaged in more conventional real estate fraud, including directing co-conspirators to lie on loan documents and placing false liens on homes to force his victims to pay him thousands of dollars before they could sell their homes. All told, Williams defrauded numerous victims of more than $1,700,000 in actual and intended losses.
This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorneys Chad Golder and Kosta Stojilkovic prosecuted 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.Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce the Arrest of Australian Man for Extorting Minors into Creating Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced criminal charges against MARK ANTHONY WARREN for engaging in a scheme to lure minor children over the Internet into engaging in sexually explicit conduct, which WARREN secretly recorded and threatened to disseminate unless the minor children produced and sent him additional sexually explicit videos. WARREN was charged with production and receipt of child pornography, and extortion. Based on information provided by the FBI, WARREN was arrested yesterday in Australia by the New South Wales Police Force, and charged with related offenses.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Mark Anthony Warren used social media and phony profiles to ensnare his minor victims and later force them into engaging in sexually explicit acts that he recorded. Warren allegedly believed he could hide behind the anonymity of the Internet and use special computer software to escape detection, but he was sorely mistaken. Protecting minors from individuals who prey on and attempt to exploit them is a high priority of this Office, and thanks to the outstanding efforts of FBI agents and our prosecutors, Warren will be made to answer for his alleged crimes.”
FBI Assistant Director-in-Charge Venizelos said: “Warren was arrested today for allegedly developing unsuspecting male minors into subjects of his self-directed production of child pornography. Posing as a teenager himself, he coerced them into engaging in sexually explicit conduct and later tormented them with the threat of releasing proof of this conduct to their families and friends. Once removed, the virtue of innocence can never be restored. The exploitation of minors is a cause of great concern, and the FBI will continue to go after networks of online pedophiles and other sexual predators who use the Internet to sexually exploit children.”
According to the allegations contained in the criminal Complaint unsealed today:
From at least November 2013 to December 2013, MARK ANTHONY WARREN used multiple false identities and posed as a teenage girl in order to trick, coerce, and extort minor male victims into producing child pornography at his direction. In particular, WARREN created bogus accounts on various social media websites using false identities and posing as various teenage girls and a teenage boy. Using these bogus accounts, WARREN contacted male minors, including a 14 year-old in New York, New York, and, posing as a teenage girl, engaged them in sexually explicit discussions via online chats. During these chats, WARREN showed the minor males a pornographic video of a young woman who WARREN claimed to be, and simultaneously secretly video recorded the minor males engaging in sexually explicit conduct.
After making these secret pornographic recordings of his minor victims, WARREN contacted them again online and threatened to publish the videos to the victims’ families and friends unless the victims created additional pornographic videos of themselves and uploaded them to a particular website accessible by WARREN. WARREN provided the victims with specific, detailed instructions about the sexually explicit videos they were to make at his direction. He further threatened that if the minor male victims went to law enforcement, the victims would be arrested and charged with child pornography crimes. WARREN also told his victims that he used particular computer software to obscure his identity, and that he was beyond the reach of law enforcement.
WARREN, 49, of New South Wales, Australia, is charged with one count of production of child pornography and one count of attempted production of child pornography, each of which carries a mandatory minimum sentence of 15 years in prison, and a maximum sentence of 30 years in prison. He is also charged with one count of receipt and distribution of child pornography, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison, as well as one count of extortion, which carries a maximum sentence of two years in prison.
Mr. Bharara praised the outstanding investigative work of the FBI. He also thanked the New South Wales, Australia, Police Force and the Australian Federal Police. Mr. Bharara added that the investigation is continuing.
The FBI encourages the public to report suspected child predators and any suspicious activity through their switchboard at (212) 384 -1000. It is staffed around the clock by investigators. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at 1-800-843-5678 or http://www.cybertipline.com.
The prosecution is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorneys Eun Young Choi and James Pastore are in charge of the prosecution.
The charges contained in the Complaint are merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Mark Anthony Warren Complaint
Man Arrested for Sending Threatening Interstate Communications via FacebookRead the Press Release
SAN JUAN, Puerto Rico – This morning FBI agents in the Tampa area arrested Jorge Jimenez for his violation of 18 U.S.C. section 875(c) for sending threatening interstate communications to J.P., an adult male residing in Puerto Rico, via Facebook, announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez.
On December 5, 2013, a federal grand jury returned a true bill that charged Jorge Jimenez, a Florida resident, with making threatening interstate communications via Facebook to J.P., in violation of Title 18 of the United States Code, Section 875(c).
On August 3, 2013, Jimenez transmitted several threatening messages directly to J.P.’s Facebook inbox, as follows:
“Mr. Maurice Spagnoletti had a bachelor of Science (BS) from St. Peter’s (PIERLUISI) College … I WONDER WHO DID THAT HIT … HE WILL HAVE HIS REVENGE. Sincerely, William the Lion.”
“They are going to stick a screwdriver in both the eyes, then they will stick a hot bar in his ass… and to complete the job, they will proceed to cut with a lovely AXE.
after the deed is done, William the Lion asks, What You Gon Do?
The transmission sent to J.P. by Jorge Jimenez included pictures of a decapitated individual, an axe, pictures of eyes, a screwdriver, and made reference to a family member of J.P.If convicted, the defendant faces up to five years imprisonment, three years of supervised release, and a $250,000 fine. The case is being prosecuted by Assistant U.S. Attorney Luke Cass.
Local Tax Preparer Indicted on Fraud ChargesRead the Press Release
St. Louis, MO - The owner and operator of a St. Louis County tax preparation service was indicted yesterday for filing false returns and stealing the identities of taxpayers. RONALD SHONIWA, of Florissant, faces one count of theft of government funds for filing 15 tax returns, which generated more than $50,000 in improperly paid refunds, and two counts of aggravated identity theft for stealing the names and social security numbers of unsuspecting citizens and filing fraudulent returns in their names without their consent or knowledge.
If convicted, the theft of government funds count carries a maximum penalty of ten years, and/or a fine of up to $250,000. The aggravated identity theft counts are punishable by two years mandatory imprisonment and a fine of up to $250,000. The sentence for aggravated identity theft runs consecutively to any sentence imposed on the theft of government funds count. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Additionally, restitution to the IRS for the improperly paid refunds will be sought.
United States Attorney Richard Callahan noted that "stolen identity refund fraud is a large and growing problem across the country, and the IRS and Justice Department dedicates substantial resources in fighting it, particularly at this time of year."
"Taxpayers should exercise caution when choosing a tax professional, especially since you will hand over your personal and financial identifying information," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. "They should also be aware of the many free, professional tax preparation services available to low and moderate income taxpayers and senior residents throughout St. Louis."
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Leitchfield, Kentucky Man Sentenced to Ten Years in Prison for Possession and Distribution of Child Pornography ImagesRead the Press Release
OWENSBORO, Ky. - A Leitchfield, Kentucky man was sentenced to ten years in prison, followed by ten years of supervised release today, in United States District Court, before Chief District Judge Joseph H. McKinley Jr., after pleading guilty to violating federal child pornography laws including the possession and distribution of child pornography announced David J. Hale, United States Attorney for the Western District of Kentucky.
Michael Brandon Thompson, age 29, admitted in court to using a peer to peer file sharing network to allow others to download images of child pornography between July 18, 2011 and September 2, 2011. According to the factual basis found in an Affidavit attached to a Criminal Complaint, a detective with the Colorado Springs Police Department, utilizing the peer-to-peer file sharing network downloaded several password-protected files from Thompson. During the download, the detective was able to preview approximately 300 video files containing images of children engaged in sexually explicit conduct. The Colorado law enforcement official forwarded the lead to the Kentucky State Police who executed a state search warrant on Thompson’s home. They seized computer equipment and storage devices for digital media. A forensic examination of those items revealed tens of thousands of videos and still images of child pornography, including the depictions of infants being sexually abused.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Kentucky State Police conducted the investigation through Kentucky’s Internet Crimes Against Children “ICAC” task force.
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."
Leader of Identity Theft Ring Targeting Government Employees Sentenced to 10 YearsRead the Press Release
ALEXANDRIA, Va. – Christopher Bush, 40, of District Heights, Md., was sentenced today to 10 years in prison, followed by four years of supervised release, for bank fraud, access device fraud, and aggravated identity theft. Bush was also ordered to pay full restitution to the victims.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Kathy A. Michalko, Special Agent in Charge for the United States Secret Service’s Washington Field Office; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by United States District Judge Claude M. Hilton.
Bush pleaded guilty on October 11, 2013.
According to court documents, between January 2012 and July 2013, Bush and co-leader Jenaro Blalock recruited individuals with access to identity information through their employers to steal over 600 identities. Bush used the stolen identities to make fraudulent driver’s licenses bearing the victims’ real names, addresses, and dates of birth. Members of the identity theft ring, including Bush himself, used those fraudulent driver’s licenses and victims’ social security numbers to open credit lines at retailers and obtain rental cars, which were frequently sold on the black market with altered vehicle identification numbers. Bush’s associate, Adrienne Pritchett, stole more than 450 identities from her employer, an insurance provider catering to employees of the U.S. Department of State, U.S. Department of Defense, and the U.S. Agency for International Development. In court documents, Bush acknowledged that the identity theft ring caused victim losses of between $400,000 and $1,000,000.
On January 10, 2014, Pritchett was sentenced to 57 months for her role in the ring. Co-leader Jenaro Blalock will be sentenced on February 14, 2014.
This case was investigated by the United States Secret Service and the Fairfax County Police Department, with assistance from the City of Fairfax Police Department, Prince George’s County W.A.V.E. (Washington Area Vehicle Enforcement), Prince George’s County Financial Crimes Section, the Metropolitan Washington Airport Authority, Delaware State Police, Maryland State Police, D.C. Metropolitan Police Department, U.S. Postal Inspection Service, the Office of the Inspector General of the U.S. Department of Agriculture, and the Office of the Inspector General of the U.S. Department of State. Assistant United States Attorney Lindsay Kelly and Special Assistant United States Attorney Peter Roman of the Department of Justice’s Computer Crimes and Intellectual Property Section prosecuted 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.Lawrence Man Charged in Wichita Bank RobberyRead the Press Release
WICHITA, KAN. A Lawrence man was charged today with robbing a bank in Wichita, U.S. Attorney Barry Grissom said.
Matthew Greenlee, 25, Lawrence, Kan., was charged with one count of bank robbery. An affidavit filed in support of the criminal complaint alleged that at about 3:45 p.m. on Jan. 16 Greenlee robbed the Bank of America at 7310 W. 21st in Wichita. He gave the teller a note saying to put the money in his bag. The note ended with, “thxs and plz.” He took the money and left the bank.
Less than two hours later, while investigators were still processing the crime scene, Greenlee returned to the bank with his father and surrendered to them.
If convicted, he faces a maximum penalty of 20 years and a fine up to $250,000. The Wichita Police Department and the FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Kechi Man ChargedWith Distributing Child PornographyRead the Press Release
WICHITA, KAN. A Kechi man was charged today with distributing child pornography, mainly from his computer at work, U.S. Attorney Barry Grissom said.
Jaime Menchaca, 33, Kechi, Kan., was charged in a criminal complaint filed in U.S. District Court in Wichita with one count of distributing child pornography and one count of possessing child pornography.
An affidavit filed in support of the complaint alleged the investigation began in September when agents of Homeland Security Investigations (HSI) served a search warrant at the residence of a man in Pevely, Mo. They found evidence the man had received child pornography from IP addresses they traced to Highland Dairy in Wichita and Menchaca’s home in Kechi. Investigators determined Menchaca was a manager at the dairy.On Jan. 11, 2014, investigators took a trained computer forensic analyst with the Kansas Internet Crimes Against Children Task Force (KS ICAC) to the dairy and made a copy of the company computer used by Menchaca. They also obtained a thumb drive from Menchaca. The thumb drive contained images of children as young as six years old engaged in sexual acts. Investigators determined Menchaca had been using the Internet to trade child exploitation materials through a photo-sharing site. He primarily conducted this activity from his computer at work but also checked his emails from his home.
If convicted, he faces a penalty of not less than five years and not more than 20 years in federal prison and a fine up to $250,000 on the distribution count, and a maximum penalty of 10 years and a fine up to $250,000 on the possession count. Homeland Security Investigations (HSI), the Wichita Police Department, and the Kansas Internet Crimes Against Children Task Force investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Kadoka Man Sentenced for Destruction of Government PropertyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Kadoka, South Dakota, man convicted of Destruction of Government Property was sentenced on January 13, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Lynn Standing Bear, age 21, was sentenced to 8 months in custody, 3 years of supervised release, ordered to pay $10,293.50 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Standing Bear pled guilty to the charge on October 18, 2013. The charge related to Standing Bear entering the Indian Health Services Clinic in Wanblee during the nighttime hours on July 5, 2013. Once inside the clinic, Standing Bear used different tools to cause damage to the clinic. Standing Bear also stole 11 bottles of Hydrocodone and then attempted to sell the pills in the Wanblee area.
This case was investigated by the Department of Health and Human Services, Office of the Inspector General, the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Standing Bear was immediately turned over to the custody of the U.S. Marshals Service.
Justice Department, City Hail Approval of New Seattle Police Department Bias and Stops PoliciesRead the Press Release
SEATTLE – U.S. District Judge James L. Robart today approved sweeping new Seattle Police Department policies on biased policing and investigative stops. The new policies were created by the city of Seattle in conjunction with the Justice Department, and approved the federal Monitor. The new “Stops and Detentions” and “Bias-Free Policing” policies clarify how officers are to handle street encounters and will help ensure that officers do not engage in discriminatory policing. For the first time, the policies will require the collection of data to help evaluate trends and address any ongoing concerns.
Consistent with the settlement agreement reached by the Justice Department and the city of Seattle in 2012, both policies were developed with significant input from members of the Community Police Commission (CPC), Seattle Police Department (SPD) and nationally renowned policing and civil rights experts. The CPC and community members who were engaged through an extensive outreach program played a major role in formulating the policies. The parties met several times with the CPC, which did extensive community engagement and had a working group on the topic, and incorporated its comments.
The new policies will go into effect on Jan. 31, 2014. Officer training is currently being developed in consultation with the CPC and will be implemented by the end of summer 2014.
“Police legitimacy and community trust are built through each encounter that police officers have with the public. These new policies put the Seattle Police Department at the forefront of law enforcement agencies across the country,” said Acting Assistant Attorney General Jocelyn Samuels. “These policies require that data on each encounter is collected and analyzed to ensure that discriminatory policing is not taking place. This transparency promotes the accountability of our law enforcement officers and will give the public confidence that policing in Seattle is fair and impartial.”
“These new policies will set the national standard and are a huge step forward,” said U.S. Attorney Jenny A. Durkan. “They give police the certainty they need while addressing some of the most consistent and damaging concerns raised by community members. We want proactive policing; yet negative street encounters and any real or perceived bias can significantly undermine the trust necessary for effective policing in every corner of our community. Officers will have clear direction and SPD will have the data and tools its needs to ensure progress. I am very grateful to the CPC for its role in developing these policies and educating the public about them.”
“The perception of racial bias in policing doesn’t just corrode the community’s trust in the police force, it erodes the morale of our officers,” said Seattle Mayor Ed Murray. “Addressing this very real issue is among the most serious and urgent reforms the Police Department must undertake in the consent decree process. The new policies announced today are a great step in that direction -- and the CPC is to be commended for its excellent work. These policies will give our officers clear and consistent direction for effectively handling encounters on the street. Combining in-depth training on these polices with on-going tracking, monitoring and reporting of these encounters is another critical step to ensure SPD is trusted by the community, effective in the community and accountable to the community. And with the Martin Luther King Jr. holiday weekend upon us, I can’t think of a better time for Seattle to step forward on the issue of bias-free policing.”
The department’s investigation in 2011 found that SPD officers often exhibited confusion between a casual, social contact (where a person is free to leave) and an investigative detention short of an arrest, also known as a Terry stop (where a person is not free to leave). Some data and community input suggested that this confusion – as well as other problems with training and oversight – led to inappropriate pedestrian encounters that may have resulted in a disproportionate number of people of color - in particular youths - being stopped where no offense or other police incident occurred. Incidents of overt discrimination and the fact that excessive force disproportionately occurred against minorities also gave the department concern and lead to the inclusion of these issues in the settlement agreement. SPD’s failure to collect and analyze data that could address and respond to allegations compounded the problem.
The new Stops and Detentions policy lays the foundation to resolve those concerns by:- Clarifying the distinction between social contacts and Terry stops.
- Making clear that a Terry stop occurs any time an officer has restrained the liberty of a citizen; must be based on reasonable suspicion; must be reasonable in scope and duration and has certain limits imposed by law; and must be documented with clearly articulated and objective facts.
- Ensuring professionalism in such stops.
- Improving oversight by requiring supervisors to review the documentation of Terry stops before the end of their shift and requiring SPD to collect, for the first time, electronic data about such stops that will permit analysis and identification of trends, patterns and concerns with practices at a systemic level.
The new Bias-Free Policing policy also gives officers clear direction by:
- Clearly and accurately defining what bias-based policing is.
- Expanding what “personal characteristics” are covered by the policy, including gender, sexual orientation and homelessness.
- Identifying expressly prohibited acts and reporting obligations when an officer observes a prohibited act.
- Improving oversight by requiring a supervisor to go to the scene of any complaint of bias-based policing to investigate, analyze and document such encounters.
- Requiring SPD to collect, for the first time, data about policies and practices that may have, not an overtly discriminatory intent, but an unwarranted “disparate impact” on certain protected classes.
"This is another major milestone as we move forward in our reform efforts," said Seattle Police Chief Harry Bailey. "I would like to acknowledge the members of the Community Police Commission for their contributions in working with my staff to make these policies a reality. The new policies, when coupled with proper training and supervision, will ensure that our police department will be able to deliver the quality police services that our residents deserve and expect."
“I am excited by the real progress towards reform these new policies evidence,” City Attorney Pete Holmes said. “Numerous different points of view were considered through the hard work of many participants. In the end, we are fortunate to have a federal judge and monitor who help the parties along each stage of the Seattle process to a successful conclusion.”
Judge Sentences New Yorker to 10 Years in Prison for Cocaine PossessionRead the Press Release
PITTSBURGH - A resident of Yonkers, New York, has been sentenced in federal court to 10 years in prison on his conviction of possession with the intent to distribute 500 grams of cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Mark Hornak imposed the sentence yesterday on Darrell Rhett, 52 of Yonkers.
According to information presented to the court, Rhett, who was on federal supervised release for his participation in a large heroin distribution conspiracy at the time of his offense, possessed approximately 600 grams of cocaine, which was discovered in a traffic stop on the Pennsylvania Turnpike in October, 2012. This cocaine was destined for Pittsburgh. The court further learned that prior to this traffic stop, Rhett had brought large quantities of heroin to the Pittsburgh area for purposes of distribution.
Assistant United States Attorney Eric S. Rosen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Pennsylvania State Troopers for the investigation leading to the successful prosecution of Rhett.
Juan Sanchez-Gonzalez Sentenced for Illegal Reentry into the United StatesRead the Press Release
The United States Attorney(s Office announced that during a federal court session in Great Falls on January 16, 2014, before U.S. District Judge Brian M. Morris, JUAN SANCHEZ-GONZALEZ was sentenced to a term of:
Prison: 12 months and 1 day
Sanchez-Gonzalez was sentenced in connection with his guilty plea to Illegal Re-Entry into the United States
In an Offer of Proof filed by Assistant U.S. Attorney Zeno B. Baucus, the government stated it would have proved at trial the following:
Sanchez-Gonzalez, who had previously been deported from the United States, was stopped by Montana Highway Patrol in Culbertson, Montana on August 30, 2013. He was subsequently questioned by the United States Border Patrol and responded in the affirmative
Mexico and in the country illegally. There is no record that Sanchez-Gonzalez ever applied for or obtained the permission of the United States Attorney General or his successor the Secretary of the Department of Homeland Security to reenter the United States.
Because there is no parole in the federal system, the (truth in sentencing( guidelines mandate that Sanchez-Gonzalez will likely serve all of the time imposed by the court. In the federal system, Sanchez-Gonzalez does have the opportunity to earn a sentence reduction for (good behavior.( However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted primarily by the United States Border Patrol.
Joseph Birdtail Sentenced to over 20 Years in Prison for Sexual AssaultRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on January 17, 2014, before U.S. District Judge Brian M. Morris, JOSEPH CHRISTOPHER BIRDTAIL, 37, of Dodson, Montana, was sentenced to a term of 264 months imprisonment, a life term of supervised release, and a special assessment of $100. Birdtail was sentenced in connection with his May 16, 2013, guilty plea to abusive sexual contact.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica Betley, the government stated it would have proved that the victim is the daughter of the defendant and the defendant(s wife. In June 2012, the victim was approximately one-and-a-half years old. On the morning of Friday, June 22, 2012, the victim(s mother changed her diaper and did not notice any irregularities with the victim. The victim(s mother left the house, located on the Fort Belknap Indian Reservation, around 11:30 a.m. to go serve lunch and sell items at a tribal function. The victim(s mother left the victim at home alone with the defendant for approximately an hour-and-a-half before she returned around 1 p.m.
When the victim(s mother returned home, she noticed the defendant was outside while the victim was inside. The victim(s mother went inside and noticed the victim(s diaper was not wet, which indicated the defendant may have changed the victim(s diaper while the mother was gone. But, the victim's mother observed that the victim(s anus was dilated and possibly bruised. The victim(s mother confronted the defendant about whether he did something to the victim. The defendant denied any wrongdoing and told his wife to take the victim to the emergency room to be examined.
At the emergency room, the doctor noted that the victim(s rectal opening was prominent and the rectal mucosa was red with perhaps small tears. The doctor called in the sexual assault nurse examiner (SANE). The SANE nurse practitioner confirmed bruising of the rectum and perianal that was clearly visualized by alternative light sources and agreed that the victim had been sexually abused. The nurse noted bruising at the 4 and 5 o(clock positions through the use of an alternate light source.
The FBI interviewed the defendant in March 2012. The defendant told the agents that on June 22, 2012, he had been alone with the victim at his home. When he changed the victim(s diaper, he (got the ugly urge( to touch the victim(s anus with his right hand. He said he stuck the tip of his finger into the victim's anus for approximately ten seconds. This investigation was conducted by the Fort Belknap Tribes and the FBI.
U.S. Attorney Mike Cotter said, "This is a 22 year sentence, without parole, that reflects the seriousness of crimes against children, the most innocent and vulnerable of victims. Protection of children has been, and will remain, a top priority of the U.S. Attorney's Office."
Jackson County Man Sentenced for Methamphetamine ConspiracyRead the Press Release
On January 17, 2014, Daniel Loden, 30, of Grand Tower, Ill., was sentenced in United States District Court in Benton on a one-count indictment charging conspiracy to manufacture methamphetamine, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced.
Loden, who had previously pled guilty to the methamphetamine offense, was sentenced to 70 months in federal prison, to be followed by 3 years of supervised release, and fined $300. The offense occurred between March 2011 and March 2013 in Jackson County. Evidence at the plea and sentencing hearings established that Loden was involved with others in the manufacture of methamphetamine. During the conspiracy, Loden supplied others with pseudoephedrine to use to cook methamphetamine. Two co-defendants have pled guilty to their role in the methamphetamine conspiracy and are awaiting sentencing.
The investigation was conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, and Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Isleta Pueblo Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Louie Valdez, 61, pleaded guilty this morning to a federal assault charge under a plea agreement with the U.S. Attorney’s Office.
Valdez, a member of Isleta Pueblo who resides in Bosque Farms, N.M., was indicted in Nov. 2012, and charged with assault resulting in serious bodily injury and assault with a dangerous weapon. According to the indictment, Valdez seriously injured a man by running over him with a vehicle on Aug. 10, 2011, in Isleta Pueblo.
During today’s proceedings, Valdez pled guilty to the first count of the indictment charging him with assault with resulting in serious bodily injury. In his plea agreement, Valdez admitted that on Aug. 10, 2011, he intentionally drove his pickup truck over the victim and the victim suffered serious injuries as a result.
Valdez was remanded into federal custody after entering his guilty plea and will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Valdez faces a maximum penalty of ten years in prison.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services with assistance from the Isleta Tribal Police Department, and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers.
International Fugitives Sentenced to 66 Months in Prison for Asset Tracing SchemeRead the Press Release
NEWPORT NEWS, Va. – Elaine White, 70, formerly a resident of Toronto, Canada, and her husband, Cullen Johnson, 65, were both sentenced yesterday to a term of 66 months in prison, followed by 3 years of supervised release, for their role in an international asset tracing scheme. In addition, both White and Johnson were ordered to pay restitution in the amount of $1,021,738.60.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office, and Kathryn Keneally, Assistant Attorney General of the Justice Department's Tax Division made the announcement after sentencing by United States District Judge Mark S. Davis.
Johnson and White pleaded guilty to participating in a conspiracy to engage in money laundering on Sept. 26 and Oct. 7, 2013, respectively. According to court documents, starting in 2006, Johnson and White owned and/or operated an asset location business called “Internal Affairs,” “World Solutions” and then “Occipital.” Clients seeking to locate funds that had been stolen from them or who believed that relatives or former spouses had hidden money or were otherwise trying to trace lost, missing or stolen assets, hired White and Johnson to investigate the location of such assets. White and Johnson then produced reports of information to such clients, which purported to contain financial and other information subject to the clients’ requests. Johnson was a former Toronto Police Department detective and White was a private investigator in Toronto.
According to court records, rather than providing valid information, White and Johnson provided the client-victims with fabricated banking records, purporting to show that the assets or money that clients sought had been moved from one banking institution to another in locations such as Monaco, Greece, Hong Kong, Switzerland, Latin America and the Caribbean. For additional payments, White and Johnson claimed that they could continue to trace the funds to their final destination. On any occasion where the client-victims determined that the information provided by the defendants was false, the defendants claimed that the information was valid and accused the client-victims or their representatives of improperly trying to collect the funds.
Further, court documents also state that, in or about 2009, White and Johnson were charged by the Ontario Provincial Police in Canada with crimes related to this asset tracing fraud. The couple fled Canada, traveling first to the Bahamas, and then to the Turks & Caicos Islands, where they continued to operate this fraudulent asset tracing business on U.S. and Canadian victims. The couple claimed to client-victims that they had been wrongfully charged due to their discovery of government corruption in Canada and the hiding of Canadian funds by politicians and officials in offshore banks. The couple resided there until they were apprehended by Turks & Caicos authorities. All told, the couple solicited more than $1,000,000 from U.S. and Canadian victims, including about $500,000, which they wired to one of their co-conspirators.
Additionally, on Jan. 15, 2014, Juliet Bickford, a resident of Hampton Roads, Va., entered a guilty plea before Magistrate Judge Tommy Miller to one count of filing a false 2011 tax return relating to a false medical deduction. As part of the statement of facts submitted in connection with the guilty plea, Bickford admitted to receiving and spending funds she received from Johnson and White. Bickford did not report any of these funds on her tax returns. She also agreed to pay restitution of $10,000 to the victims of the scheme. Her sentencing has been scheduled for May 6, 2014.
This case was investigated by IRS-Criminal Investigation. It is being prosecuted by Assistant U.S. Attorneys Brian J. Samuels and Lisa R. McKeel and Trial Attorney Jed Silversmith of the Justice Department’s Tax Division.
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. More information about the Tax Division and its enforcement efforts can be found at www.justice.gov/tax.Inmate Sentenced to 55 Months in Federal Prison for Mailing Threats to Law EnforcementRead the Press Release
DALLAS — Jesse Brister, aka “Bozo,” was sentenced this morning, by Chief U.S. District Judge Sidney A. Fitzwater, to 55 months in federal prison, following his guilty plea in September 2013 to one count of mailing threatening communications. Brister, 28, of Conroe, Texas, is presently in custody in the Texas prison system in an unrelated case. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Brister has identified himself as a proud member of the Aryan Brotherhood of Texas (ABT); Texas prison officials also list him as a member of that security threat group. In March 2013, Brister was incarcerated in the Telford Unit in New Boston, Texas.
On March 21, 2013, Brister wrote and signed a letter addressed to the U.S. Attorney in the Earle Cabell Federal Building in Dallas. In this letter, Brister wrote, among other things, that
“[p]roudly, I am writing this letter to this Federal Building and . . . but I am intending it to the Federal Department point blank. Our demands are simple; you have apprehended members of our family; Big Terry, Jive, Baby Huey, and others in our Dallas/Ft. Worth region. … If your federal government does not drop the current charges on these ABT members my circle/family will start with DA’s not involved in these cases . . . We have a list of names Judges included.”
At the time of this letter, there was a racketeering indictment pending in the Southern District of Texas against the ABT and its leaders and soldiers. All of the ABT members mentioned above in Brister’s letter were under federal indictment in Houston. In a second letter Brister sent to the U.S. Attorney’s Office, dated March 28, 2013, Brister urged the Feds to make a peace treaty with the ABT because, “trust me its not fun having to search the DA’s, U.S. Attorneys, Judges, and so on and so forth vehicles everyday for bombs. . . .”
Approximately 10 days after Brister wrote his first letter, Kaufman County District Attorney Mike McLelland and his wife were gunned down in their home in what appeared to be a well-orchestrated assassination.
Brister was interviewed by federal and state law enforcement officers regarding this letter, and others he sent. He admitted to writing these letters, and although he initially claimed otherwise, he ultimately denied any involvement of the ABT in any of the Kaufman County murders. (Assistant District Attorney Mark Hasse had been murdered earlier in 2013.)
The investigation into these threats was conducted by the Kaufman County Sheriff’s Office, the Texas Rangers (Texas Department of Public Safety), the FBI and other local, state and federal law enforcement agencies. Criminal Chief Assistant U.S. Attorney Chad Meacham prosecuted.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Ostby in Billings on January 17, 2014 and entering pleas of Not Guilty were:
- MICHAEL ALLAN ERHART, a 32-year-old resident of Billings appeared on charges of conspiracy with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, distribution of methamphetamine and aiding and abetting. If convicted of the most serious offenses charged in the indictment, ERHART faces life in prison, $10,000,000 in fines and 5 years supervised release. The investigation was a cooperative effort between the Drug Enforcement Administration and the Federal Bureau of Investigation Task Force. PACER Case Reference: 14-07
- MICHAEL CORY SEVERSON, a 45 year-old-resident of Billings appeared on charges of conspiracy with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, distribution of methamphetamine, aiding and abetting, and possession of a firearm. If convicted of the most serious offenses charged in the indictment, SEVERSON faces life in prison, $250,000 in fines and lifetime supervised release. The investigation was a cooperative effort between the Drug Enforcement Administration and the Federal Bureau of Investigation Task Force. PACER Case Reference: 14-07
The indictment is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
The U.S. Attorney's Office is currently transitioning its media program to new media contacts. Resources and this transition may affect the amount of information the office can process and disclose in a timely manner. Therefore, if any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Strong in Great Falls on January 13, 2014 and entering pleas of Not Guilty were:
- LANO THOMAS KIPP, a 22-year-old resident of Browning appeared on charges of conspiracy with intent to distribute methamphetamine, possession with intent to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious offenses charged in the indictment, KIPP faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The investigation was brought by the Federal Bureau of Investigation. PACER Case Reference: 14-04
- VIN RICHARD WROBLEWSKI, a 43 year-old-resident of Browning appeared on charges of aggravated sexual abuse. If convicted of the charge in the indictment, WROBLEWSKI faces life in prison, $250,000 in fines and lifetime supervised release. The investigation was brought by the Federal Bureau of Investigation. PACER Case Reference: 14-03
Appearing before U.S. Magistrate Judge Lynch in Missoula on January 14, 2014 and entering pleas of Not Guilty were:
- LVIN C. CLELAND, a resident of Butte appeared on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious offense charged in the indictment, CLELAND faces life in prison, $10,000,000 in fines and five years supervised release. The investigation was a cooperative effort between Homeland Security Investigations and Butte Silver Bow Law Enforcement Agency. PACER Case Reference: 13-24
Appearing before U.S. Magistrate Judge Lynch in Missoula on January 15, 2014 and entering pleas of Not Guilty were:
- COB RAYMOND MICAS, a 33-year-old resident of Butte appeared on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious offense charged in the indictment, MICAS faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The investigation was brought by Homeland Security Investigations. PACER Case Reference: 14-01
The indictment is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
The U.S. Attorney's Office is currently transitioning its media program to new media contacts. Resources and this transition may affect the amount of information the office can process and disclose in a timely manner. Therefore, if any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indiana Man Sentenced to Two Years in Prison and Ten Years of Supervision for Failing to Update Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Brian George Campbell, 50, of Fremont, Indiana, was sentenced to 24 months in federal prison followed by ten years of supervised release for failing to comply with the Sex Offender Registration and Notification Act (SORNA). Campbell will be required to register as a sex offender when he completes his prison sentence.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that convicted sex offenders register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
In early June 2013, the U.S. Marshal Service arrested Campbell based on a criminal complaint alleging that Campbell had violated SORNA by failing to update his sex offender registration. According to court filings, Campbell was required to comply with SORNA because he has two prior child sex abuse convictions. Campbell was convicted of lewd and lascivious conduct on a child under the age of 16 years in Florida in Nov. 1984, and sentenced to two and a half years in prison. In May 1988, he was convicted of criminal sexual conduct on a child under the age of 13 years in Michigan and 19 years in prison.
In 2011, after his release from prison, Campbell registered as a sex offender in Michigan. In 2012, he moved to Indiana where he registered as a sex offender as required. In March 2013, the State of Indiana issued an arrest warrant for Campbell for failing to update his registration. Indiana state officials subsequently notified the U.S. Marshals Service in New Mexico that Campbell was believed to be in New Mexico.
In May 2013, the U.S. Marshals Service determined that Campbell was living in Albuquerque and working as a security guard. It also determined that Campbell had failed to register with the Bernalillo County Sheriff’s Office as required by SORNA. Campbell was arrested by the U.S. Marshals Service on June 6, 2013, and has been in federal custody since that time.
On Sept. 16, 2013, Campbell pled guilty to an indictment charging him with failure to update his sex offender registration and admitted that he failed to comply with SORNA’s registration requirements when he came to New Mexico in April 2013.
“The United States Marshals Service is widely acclaimed, locally, nationally and internationally, for its efforts to effectively investigate and pursue those that have been charged as sex offenders. It is this effectiveness that is combined with a network of local, county, state, federal and tribal law enforcement community, all unified with a common goal of maintaining continual monitoring of sex offenders in order to prevent predatory and violent acts from occurring,” said U.S. Marshal Conrad E. Candelaria. “This recent sentence that was spearheaded by the United States Attorney’s Office is another example of the zero tolerance pursued against those that would dare to injure or harm a child.”
Acting U.S. Attorney Steven C. Yarbrough commended the U.S. Marshal Service Assistant U.S. Attorney David Adams for their work on this case.
Idaho Man Found Guilty of Failure to Pay Legal Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that David E. Cox, age 47, of Post Falls, Idaho, was found guilty by a federal jury in Rapid City, South Dakota, of 3 counts of Failure to Pay Legal Child Support.
A sentencing date was set for Thursday, January 23, 2014.
The charge carries a maximum penalty of 2 years in custody and/or a $250,000 fine, 1 year of supervised release, a $100 special assessment to the Federal Crime Victims Fund, and child support restitution amount owing at the time of sentencing.
Cox was previously ordered by the Eighth Judicial Circuit, Lawrence County, South Dakota, to pay child support for his minor children in three separate cases. At trial, it was revealed that Cox owes approximately $61,000 in past due child support obligations.
This case was investigated by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Home Health Services Company Employee Pleads Guilty to Medicaid FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Robin Pavey, 45, of Washington Court House, Ohio pleaded guilty in U.S. District Court to submitting $312,868 in fraudulent claims for home health care services for children to the Ohio Medicaid Program.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General, and Ohio Attorney General Mike DeWine announced the plea entered today before Senior U.S. District Judge George C. Smith.
According to testimony at the plea hearing, between August 2012 and March 2013, Pavey, who was employed by Healthy Solutions Home Health Services with offices in Washington Court House and Hillsboro, instructed parents whose children were receiving home health care services to “swap” time sheets with other parents who were providing home health care services to their own children. It was part of the scheme that by swapping time sheets it would give the false appearance that parents were providing home health services to children other than their own. Under the Medicaid Program, a home health aide cannot be the parent, foster parent, or legal guardian of a patient who is under 18 years old.
It was also part of the scheme that in order to maximize the amount of reimbursement paid by the Medicaid Program, Pavey instructed Healthy Solution nurses to submit Skilled Nursing Visit Notes that falsely inflated the number of hours that nurses were providing home health services.
Health care fraud is punishable by up to ten years in prison and a fine of $250,000. Peavey could also be sentenced to pay restitution.
Stewart commended Assistant United States Attorney Ken Affeldt, Special Assistant U.S. Attorney Constance Nearhood with the Ohio Attorney General’s Office and Assistant Ohio Attorney Geenral Maritsa Flaherty, who represented the United States in the case, and the cooperative investigation conducted by Health and Human Services Inspector General agents, and agents in Attorney General DeWine’s Medicaid Fraud Control Unit.
Ohioans can report suspected Medicaid fraud to Attorney General DeWine's office by calling 1-800-282-0515 or visiting www.OhioAttorneyGeneral.gov.
Individuals or health care company employees who suspect fraud against government health insurance programs can also report them anonymously online at www.stopmedicarefraud.gov, or by calling 1-800-HHS-TIPS (800-447-8477).
Highland Resident Pleads Guilty to Child Pornography OffensesRead the Press Release
A Highland, Illinois, resident pled guilty on January 17, 2014, to a two-count Indictment, charging him, in Count 1, with Transportation of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, and, in Count 2, with Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Daniel C. Shaw, a/k/a “Josh Shackfer,” 38, faces a term of imprisonment of not less than five (5) but not more than twenty (20) years, a fine up to $250,000, and a term of supervised release of five (5) years to life on Count 1, and a term of imprisonment of not more than ten (10) years, a fine up to $250,000, and a term of supervised release of five (5) years to life on Count 2. In addition, upon his release from prison, Shaw must register as a sex offender as a condition of his supervised release. Sentencing is scheduled for May 30, 2014, in East St. Louis, Illinois.
The investigation began on September 23, 2012, when the mother of a fifteen year old minor contacted the Citrus County, Florida, Sheriff’s Office, and reported that a man sent her daughter pictures of a penis, and that she found sexually explicit texts between the man and her daughter. When interviewed, the daughter verified that she was sent a picture of a penis, but said that she deleted it. She also admitted that her conversations with the man, who she knew as “Josh Shackfer,” were sexual, and that she told him her age. She said that “Shackfer” told her that he would be 19 in October and that he would be moving to Florida soon. After numerous texts from the mother to the man telling him to stop communicating with her daughter were ignored, the mother reported the incident to the Citrus County Sheriff’s Office.
The subsequent Florida investigation revealed that, from on or about July 30, 2010, until January 12, 2011, Defendant Daniel C. Shaw, posing as a 16 year old boy named “Josh Shackfer,” made contact with several minor females in Florida using MySpace. Shaw was 35 years old at the time, and lived in Highland, Illinois. The investigation also revealed that Shaw, disguised as “Josh Shackfer,” engaged in sexually explicit conversations with several minor females, either through text messaging, instant messaging, or telephone calls, knowing that these girls were minors. He also asked some of these minor females to send him photographs of them naked and/or of their naked genitalia. Several females did so, including M.P., who sent close-up photographs of her naked genitalia. The pictures of M.P., which were clearly visual depictions of a minor engaged in sexually conduct, were found on Shaw’s MySpace e-mail account. After being shown the pictures by a Highland, Illinois, Police Officer, Shaw identified the pictures of M.P. by initialing each of them, and indicated that he knew M.P. was either 16 or 17. (Count 2).
In a voluntary statement to a Highland, Illinois, Police Detective, Shaw admitted communicating with the minor females in Florida using a fake MySpace page under the name of “Josh Shackfer,” in which he identified himself as an 18 year old. He said that he used images he found on the internet on this MySpace page. He also admitted engaging in sexually explicit conversations with these underage girls, and trading pictures with these minors. Shaw saved the pictures sent to him from the minor females, including the sexually explicit pictures, on Yahoo e-mail account, stating that he had approximately twenty (20) pictures on his account. Shaw said that he had been engaged in this activity for approximately six (6) months, and that he knew the girls he communicated with in Florida were between 14 and 17 years of age. The pictures that were downloaded also demonstrated that Shaw had transferred the visual depictions of the minors engaged in sexually explicit conduct from one e-mail account to another, via the internet (Count 1).
Shaw also provided a voluntary statement to members of the FBI’s Springfield Child Exploitation Task Force in which he again admitted creating the fake “Josh Shackfer” MySpace page to communicate with underage girls. Shaw also admitted asking these underage girls to send him their pictures, including pictures of their breasts, buttocks and genitalia. He said that the trading of pictures between him and the minor females occurred during sexually oriented chats. Shaw admitted sending several pictures to M.P., and again acknowledged that he knew M.P. was a minor. He said that M.P. sent him between five and seven pictures of her breasts, buttocks, and other “body poses.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the Citrus County, Florida, Sheriff’s Department, the Highland, Illinois, Police Department and the Federal Bureau of Investigation's Springfield Child Exploitation Task Force (SCETF). The case is assigned to Assistant United States Attorney Angela Scott.
Guilty Pleas in Sedona Tanning Spa CaseRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced pleas of guilty today by four defendants in connection with prostitution activities, to-wit: Hyeon Chae of Atlanta, Georgia, age 45, to single counts of conspiracy to promote prostitution and conspiracy to commit money laundering; Kye Wol Dyreson, of Kansas, age 72, to one count of use of an interstate facility to promote, manage, and carry on prostitution; and Jin Noh, of Florida, age 50, along with Ki Un Jordan, of Atlanta, Ga, age 51, to one count each of misprision of a felony. The pleas were entered before the Honorable Marc Treadwell, United States District Court Judge, in Macon, Georgia.As part of their pleas of guilty, the defendants admitted that the establishment known as Sedona Tanning Salon, formerly known as Soft Hands Massage, located at 1922 Riverside Drive, Macon, Georgia, operated as a prostitution business. Defendants admitted that during the course of the conspiracy the business always operated solely as a place of prostitution and that none of the women working there were ever licensed masseuses.
According to court documents, the manager, Ms. Dyreson, would greet customers and ensure one of the female prostitutes would provide prostitution services. Ms. Dyreson also controlled all of the cash received in the establishment, ensuring that such monies were deposited in the bank accounts of the owner, Ms. Chae. The services provided by the prostitutes covered a wide range of activities and payment for same could be by cash or credit card.
The business would receive a "house fee", which was anywhere from $40 to $60 per customer, which went directly to the owner, Ms. Chae. In addition to the "house fee," there was a weekly fee that each female had to pay to Ms.Chae which covered food for the week and a daily tip for the manager, Ms. Dyreson. The defendants used several bank accounts to launder the money from the prostitution activities. During the course of the investigation, the business laundered over $700,000.00.
Ms. Chae and Ms. Dyreson each face a maximum sentence of five (5) years imprisonment on the prostitution charges. Ms. Chae faces up to an additional twenty (20) years imprisonment on the money laundering count. Ms. Jordan and Ms. Noh each face a maximum sentence of three (3) years imprisonment. The Court scheduled sentencing in the case for May 15, 2014.
'"Prostitution is a crime which dehumanizes both of the parties involved. The prostitutes are victimized as they literally sell their bodies and souls for the profit of others. The prosecution of this form ofhuman trafficking is a priority of my office and of the United States Department of Justice," said Michael J. Moore, United States Attorney for the Middle District of Georgia.
"We will continue to unite with our law enforcement partners at the local, county, state and federal levels, and utilize every tool available to us to target those who conspire with each other to victimize members of our community for their own personal gain," stated Special Agent in Charge, Veronica F. Hyman-Pillot, IRS Criminal Investigation.
"In partnership with the Bibb County Sheriffs Office, the FBI and the IRS, HSI identified criminals conducting various unlawful activities under the disguise of a legitimate business," said Brock. D. Nicholson, special agent in charge of HSI Atlanta, who oversees the agency's investigations in Georgia and the Carolinas. "The defendants brazenly exploited their 'masseuses' to operate an illegal house of prostitution in Macon and thanks to this collaborative investigation and great work by the U.S. Attorney's Office, that illegitimate business has now been shut down."
The case was investigated by the Bibb County Sheriffs Office Special Investigations Unit, the Federal Bureau of Investigation, Homeland Security Investigations, and the Internal Revenue Service-Criminal Investigations. Assistant United States Attorney Verda Colvin is handling the prosecution for the Government.
For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.