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22 February 2014
Statement on the Apprehension of Joaquin "Chapo" Guzman LoeraRead the Press Release
Today Mexican authorities announced the capture of Joaquin "Chapo" Guzman Loera, the alleged leader of the Sinaloa Cartel. The Sinaloa Cartel is designated a Significant Foreign Narcotics Trafficker by the U.S. Government.Attorney General Holder stated: "Today's apprehension of Joaquin "Chapo" Guzman Loera by Mexican authorities is a landmark achievement, and a victory for the citizens of both Mexico and the United States. Guzman was one of the world's most wanted men and the alleged head of a drug-running empire that spans continents. The criminal activity Guzman allegedly directed contributed to the death and destruction of millions of lives across the globe through drug addiction, violence, and corruption. We salute the Government of Mexico, and the professionalism and courage of the Mexican authorities, for this arrest. We are pleased that we were able to work effectively with Mexico through the cooperative relationship that U.S. law enforcement agencies have with their Mexican counterparts. We look forward to ongoing cooperation, and future successes."
Secretary of Homeland Security Johnson stated: "The operation led by the Mexican government overnight to capture Joaquin "Chapo" Guzman Loera is a significant victory and milestone in our common interest of combating drug trafficking, violence and illicit activity along our shared border. We congratulate our Mexican partners in this achievement and we will continue to work collaboratively with them to ensure a border region that is safe and secure, for the communities and citizens of both our nations."
Goodwin Announces Guilty Plea from Defendant Who Scammed Elderly VictimsRead the Press Release
CHARLESTON, W.Va. – An individual who participated in a scheme that netted more than $60,000 in one week from senior citizens in West Virginia and elsewhere has pleaded guilty to conspiracy to commit wire fraud, U.S. Attorney Booth Goodwin announced today. According to the plea agreement, Sheray J. McKay, 21, of Suitland, Md., pleaded guilty to an offense under 18 U.S.C. 1349.
"Scams to steal from older West Virginians are downright shameful,” U.S. Attorney Booth Goodwin said. “Protecting our state’s senior citizens is one of my top priorities, and in 2014, we’re going to work harder than ever to catch criminals who cheat seniors.”
According to the plea agreement, beginning in or about November 7, 2012, and continuing through November 13, 2012, McKay and others participated in a scheme to solicit money from about 16 elderly individuals who resided in West Virginia and other states. As part of the scheme, numerous elderly individuals were called at their homes and asked for money under false pretenses. It was a part of the scheme that the callers, posing as family members or clergymen of the elderly citizens, or lawyers for the so-called family members or clergymen, often falsely stated that they had been in car accidents or had been arrested for driving while intoxicated and needed money to get out of jail and pay attorney’s fees. Based on these misrepresentations, the elderly victims wired money to McKay in Maryland. McKay then picked up the monies from the wire transfers, kept a portion of the monies for herself, and handed over the rest of the monies to other individuals. Under the plea agreement, McKay agrees that she owes restitution in the amount of at least $33,400.oo and up to $61,788.00.
The defendants charged in the indictment picked up the funds from the wire transfers in Maryland and New York. The victims targeted in the alleged scheme ranged in age from 70 to 95 years old.
McKay was arrested in Maryland in December 2013 on an indictment which charged her and two co-defendants, Kacey K. Moise of New York, and Charnita E. Ryland, also of Maryland, with 12 counts of conspiracy to commit wire fraud and wire fraud. McKay was specifically charged with four counts: conspiracy to commit wire fraud and three counts of wire fraud. Based upon her guilty plea, McKay faces up to 20 years in prison at sentencing. McKay’s sentencing is set for June 5, 2014 at 3:00 p.m.
McKay’s plea hearing was conducted by United States District Judge Thomas E. Johnston.Today’s plea is part of U.S. Attorney Goodwin’s work to protect West Virginia’s senior citizens. Over the past few years, Goodwin has visited senior center locations in nearly twenty West Virginia counties to offer tips to protect seniors in their homes and help them avoid financial scams like this one. Additional information regarding this initiative can be found at http://www.justice.gov/usao/wvs/safe-seniors.html.
The investigation was conducted by the United States Secret Service. Assistant United States Attorneys Eumi Choi and Meredith Thomas are handling the prosecution.
21 February 2014
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS (before Magistrate Judge Christopher A. Nuechterlein)
Michael Hillebrand III, 30, of Mishawaka, Indiana pled guilty to the felony offense of theft of government property. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Department of Labor.Sentencing has been set for 5/22/2014.This case is being prosecuted by Assistant United States Attorney Barbara Brook.
Joseph Golden, 27, of Fort Wayne, Indiana, Indiana pled guilty to the felony offense of attempting to enter a bank to commit larceny. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation.Sentencing has been set for 5/22/2014.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS (before District Judge Robert L Miller, Jr.)
Rick Franklin, 55, of South Bend, Indiana was sentenced to 71 months imprisonment with 3 years supervised release and to pay $40,000 in restitution after pleading guilty to the felony offense of knowingly and intentionally possessing a vehicle which had altered or removed VIN numbers with the intent to dispose of the vehicle.According to documents filed in this case, in February 2013, law enforcement stopped a trailer hauling a Bobcat Skid Steer loader on US 31. The Bobcart Skid Steer loader had been “re-vinned” (the proper VIN number removed and a different one substituted) and Franklin was involved with the re-vinning. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Christopher Wilhite, 33, of Monon, Indiana was sentenced to 120 months imprisonment with 5 years supervised release after pleading guilty to the felony offense of possession of child pornography plus forfeiture allegation.According to documents filed in this case, from October 2011 to May, 2012, Wilhite possessed a laptop computer onto which he had downloaded numerous images and videos that depicted minors engaged in sexually explicit conduct. Wilhite subsequently transferred those computer files to an external hard drive. In October 2012, the laptop and external hard drive were seized at Wilhite’s residence by law enforcement. This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Department of Homeland Security, state and local task force.This case was prosecuted by Assistant United States Attorney John Maciejczyk.
Michael Spurgeon, 47, of Elkhart, Indiana was sentenced to 2 years probation after pleading guilty to the felony offense of knowingly manufacturing marijuana.According to documents filed in this case, in February 2013, DEA entered a garage in Elkhart, Indiana. Law enforcement discovered marijuana plants, grow materials, and grow lights in the building. The marijuana growing equipment and items were the property of Spurgeon. This case was the result of an investigation by the Drug Enforcement Agency.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Raymond Belsan, 33, of Syracuse, Indiana was to 120 months imprisonment with 7 years supervised release after pleading guilty to the felony offense of distribution of child pornography.According to documents filed in this case, in September 2012, Belsan possessed a custom built desktop computer onto which he had downloaded numerous images and videos that depicted minors engaged in sexually explicit conduct. Belsan also utilized file sharing programs which he used to download these images from others via the internet. Belsan also enabled file sharing for others to access some of the child pornography on his machine.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney John Maciejczyk.
(before District Judge Jon E. DeGuilio.)
Dontrell Smith, 24, of South Bend, Indiana was sentenced to 40 months with 3 years supervised release after pleading guilty to the felony offense of possession of a firearm as a convicted felon.According to documents filed in this case, in August 2013, Smith possessed a PT111 Pro Millennium, Caliber: 9mm handgun loaded with ammunition.Previously, Smith had been convicted of possession of cocaine. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Mario Stokes, 41, of Gary, Indiana, pled guilty before Senior District Judge Rudy Lozano to the felony offense of possession of a firearm by a convicted felon.Sentencing has been set for 5/23/14.This charge was filed as a result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case is being prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Jose Arriaga, 44, of Merrillville, Indiana, pled guilty before Magistrate Judge Paul Cherry to the felony offense of possession with the intent to distribute cocaine. Magistrate Cherry is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Administration.This case is being prosecuted by Assistant United States Attorney Dean Lanter.
Joiey Jones, 36, of East Chicago, Indiana, pled guilty before Chief Judge Philip Simon to the felony offense of possession of a firearm by a convicted felon.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Chicago Police Department.This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Tonja Muldrow, 33, of Michigan City, Indiana, was sentenced by Chief Judge Philip Simon to 24 months of probation after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed in this case, Muldrow illegally possessed one firearm and traded it in to a firearms store in exchange for another firearm. Muldrow has a prior conviction for the felony offense of financial identity theft. This case was a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Michigan City Police Department.This case was prosecuted by Assistant United States Attorney Dean Lanter.
Kevin Wilkerson, 39, of Gary, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 108 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of the bank robbery of Peoples Bank in Gary.This case was a result of an investigation by the Federal Bureau of Investigation and the Gary Police Department.This case was prosecuted by Assistant United States Attorney Diane Berkowitz.
Mark Bozovich, 32, of Lake Village, Indiana, a defendant in the case US v Humphrey et al., was sentenced by Senior District Judge Rudy Lozano to 235 months imprisonment and 3 years of supervised release after being found guilty at trial of the felony offense of conspiracy to possess with the intent to distribute heroin.According to documents filed in this case, Bozovich, along with others, would drive to Illinois to get heroin from Cortez Humphrey and would then redistribute it upon returning to Indiana.This case was a result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorneys Jacqueline Jacobs and Jennifer Chang-Adiga.
Lamar Johnson, 26, of Minneapolis, Minnesota, was sentenced by Chief Judge Philip Simon to 132 months imprisonment and 10 years of supervised release after pleading guilty to the felony offense of transporting a minor in interstate commerce with the intent that she engage in prostitution.This case was a result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Jill Koster.
Brealon Miller, Jr., 25, of Gary, Indiana, was sentenced by Chief Judge Philip Simon to 280 months of imprisonment with 3 years of supervised release after pleading guilty to the felony offense of the December 2012 armed bank robbery of BMO Harris Bank in Hammond, and discharging and carrying a firearm in furtherance of an aggravated bank robbery. According to documents filed in this case, Miller shot a Hammond police officer three times in his leg as he was leaving the bank after the robbery. David Lee Hardin, his co-defendant, was sentenced to 355 months imprisonment in September 2013. This case was a result of an investigation by the Federal Bureau of Investigation GRIT Task Force and the Hammond Police Department. This case was prosecuted by Assistant United States Attorney David Nozick.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA (before Magistrate Judge Roger B. Cosbey:)
Michael Bure, 27, of Fort Wayne, Indiana pled guilty to the felony offense of bank robbery. The Magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by a joint task force of the Federal Bureau of Investigation, state and local law enforcement.Sentencing has not been set.This case is being prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS (before District Judge Theresa L. Springmann:)
Jerome Burney, 40, of Fort Wayne, Indiana was sentenced to 18 months imprisonment, 3 years supervised release and to pay $461,254.72 restitution after pleading guilty to the felony offense of wire fraud.According to documents filed in this case, Burney faxed fraudulent military deployment orders to companies that were employing him at the time. The fraudulent military paperwork was used to take advantage of the military pay differential policy.The policy provides employees who are members of any branch of the United States military, or who are called up to active duty in the uniformed services as a result of an active military conflict or mission to be paid the difference between their military pay and their base rate of pay at that particular company.Because these fraudulent payments to Burney were electronically deposited into his personal bank account or made by check was sent via United States mail, his actions violated federal law.This case was the result of an investigation by the Department of Defense-Office of the Inspector General.This case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Curtis Wittwer, 66, of Spencerville, Indiana was sentenced to 18 months imprisonment (with the remainder as of the day of sentencing’s date to be served in a residential re-entry facility), with 2 years supervised release after pleading guilty to the felony offense of maintaining a drug-involved premises.According to documents filed in this case, a confidential informant notified law enforcement of Curtis Wittwer’s selling and growing of marijuana at his residence.After additional investigations, Wittwer’s residence was searched.During the search, sixteen guns, marijuana smoking devices, rolling papers, marijuana residue, and a bag with marijuana seeds were discovered.In addition, $88,600 in cash was obtained during the search.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Jamison Gudorf, 41, of Fort Wayne, Indiana was sentenced to 27 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm.According to documents filed in this case, in 2011 and 2012, the FBI Safe Streets Task Force was investigating marijuana trafficking activity and became interested in Jamison Gudorf’s activities which involved illegal drug sales.In December 2012, officers served a federal search warrant of Gudorf’s residence.During the search, officers found a large number of firearms, including several weapons that were suspected of being fully automatic.Marijuana was also discovered during the search.In 1996, Gudorf was convicted of criminal confinement and residential entry.He was also convicted in 2007 for OWI and intimidation.This case was the result of an investigation by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Nicole Andrews, 36, of Fort Wayne, Indiana was sentenced to two years probation, and to pay restitution in the amount of $16,405.39, joint and several with co-defendants, after pleading guilty to the felony offense of being an accessory after the fact to a bank robbery.According to documents filed in this case, in April 2013, a local credit union was robbed by two assailants.Local law enforcement investigations determined that Andrews was involved in the robbery’s planning and execution.Andrews also attempted to misdirect law enforcement during questioning.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Lizbeth Correa, 35 of Wawaka, Indiana was sentenced to 18 months imprisonment after pleading guilty to the felony offense of knowingly making a drug-involved premise available for use.According to documents filed in this case, in March 2013, Correa worked with others to conceal methamphetamine by hiding it inside a fake cake.Correa was employed at a restaurant that she helped use to facilitate illegal drug sales. This case was the result of an investigation by the Drug Enforcement Agency.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Virginia Man Pleads Guilty to Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with A Minor and Possession of Child PornographyRead the Press Release
WASHINGTON – Chad Pyles, 22, of Arlington, Va., has pled guilty to federal charges of traveling interstate to engage in illicit sexual conduct with a minor and possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Pyles pled guilty on Feb. 20, 2014, in the U.S. District Court for the District of Columbia. The Honorable Richard J. Leon is to sentence him on May 16, 2014. Pyles faces a maximum sentence of 30 years of imprisonment for traveling interstate to engage in illicit sexual conduct and a maximum of 20 years for possession of child pornography, as well as potential fines.
According to the government's evidence, on Aug. 7, 2013, Pyles contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site. Over the next few days, Pyles engaged in e-mail and text message conversations with the undercover officer, whom he believed was the father of an under-aged girl. Pyles arranged with the undercover officer to meet for the purpose of engaging in sexual acts with that child.
During their communications, Pyles also sent the undercover officer five images of child pornography. On Sept. 10, 2013, Pyles traveled from Virginia to a pre-arranged meeting place in Washington, D.C. When he arrived at the meeting place, he was arrested. Pursuant to a search of Pyles’s computer, law enforcement recovered several videos of child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case.
14-043Veterans Support Group Director Gets 30 Months for Stealing Veteran's IdentityRead the Press Release
Richard M. Gordon, 65, of Philadelphia, PA, was sentenced today to 30 months in prison for conversion of government property. Gordon implemented a scheme to steal from the Department of Veterans Affairs (VA) by using another veteran’s identity to obtain unauthorized healthcare benefits and to receive a VA non-service connected disability pension. For over seven and a half years, defendant Gordon continuously defrauded the VA, and ultimately converted more than $178,000 in government healthcare benefits and pension payments that he knew he was not entitled to receive.
Gordon, who reported that he is the founder and director of Veterans Support Group of America, was convicted of conversion of government property after pleading guilty in July 2013.
In addition to the prison term, Judge Eduardo C. Robreno also ordered the defendant to serve 3 years of supervised release, and to pay full restitution of $178,607.20.
"Mr. Gordon went to great lengths to not only defraud the Department of Veterans Affairs, but to avoid detection," said Jeffrey G. Hughes, Special Agent in Charge of Northeast Field Office of the Office of the Inspector General of the Department of Veterans Affairs. "The VA Office of Inspector General is committed to bringing Mr. Gordon and other individuals, who take valuable resources away from deserving veterans and their families, to justice. We would like to extend our gratitude to the Department of State, Department of Homeland Security-Immigration and Customs Enforcement (DHS-ICE), and the Dutch International Police for their assistance with this investigation."
The case was investigated by the Office of the Inspector General of the Department of Veterans Affairs, and was prosecuted by Special Assistant United States Attorney Thomas Moshang III.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Utah Man Pleads Guilty to Soliciting Gifts and Property Under False PretensesRead the Press Release
ALBUQUERQUE – Michael Vernon Rupert, 42, of Alton, Utah, pleaded guilty this morning in Las Cruces federal court to an indictment charging him with three counts of solicitation and use of gifts. Rupert entered his guilty plea without the benefit of a plea agreement.
Rupert, a former U.S. Army sergeant, was arrested on a criminal complaint in Utah on Oct. 11, 2013, and was transferred to Las Cruces federal court to answer the charges on Nov. 12, 2013. On Jan. 15, 2014, Rupert was indicted on three counts of unlawful solicitation and use of gifts. According to the indictment, in July 2012, Rupert solicited gifts and property from three companies by falsely claiming that they were for use by the U.S. Army. At the time of the offenses charged in the indictment, Rupert was residing in Hondo, N.M.
According to the criminal complaint, Homeland Securities Investigations (HSI) initiated an investigation into Rupert in Nov. 2012, after receiving information that Rupert was soliciting military and law enforcement type clothing and shooting gear from manufacturers by falsely claiming to be a U.S. Army Command Sergeant Major stationed at White Sands Missile Base. During the solicitations, Rupert claimed the goods would be used for testing and evaluation by the U.S. Army and implied that the Army would purchase large quantities of the manufacturers’ products depending on testing and evaluation, and his recommendation. HSI’s investigation revealed that Rupert solicited merchandise valued at approximately $35,000 from 37 manufacturers and distributors between July 2012 and May 2013. Although Rupert relocated from Hondo, N.M., to Alton, Utah, in Oct. 2012, he unlawfully solicited approximately $32,000 of merchandise before moving to Utah.
The criminal complaint alleges that Rupert continued his unlawful solicitation scheme when he moved to Utah, and that an investigation by Utah state authorities led to the discovery of three more manufacturers and distributors from whom Rupert unlawfully solicited merchandise. In Oct. 2013, Utah authorities searched a trailer Rupert was towing as he was in the process of moving to Missouri and found merchandise sent to him by a number of the manufacturers who had responded to Rupert’s solicitations.
Rupert remains on conditions of release pending his sentencing hearing, which has yet to be scheduled. At sentencing, Rupert faces a maximum penalty of five years in prison on each of the three counts to which he pleaded guilty.
This case was investigated by the Las Cruces office of HSI with assistance from the Kane County (Utah) Sheriff’s Department, and is being prosecuted by Special Assistant U.S. Attorney Michael S. Pleters of the U.S. Attorney’s Las Cruces Branch Office.
Two Defendants Sentenced in Stolen Identity Tax Refund Scheme Relating to A Health Care ProviderRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Angelo Ponds, 32, of Miami Gardens, and Sean Guillaume, 31, of Miramar, were sentenced today for their participation in a stolen identity tax refund scheme relating to a health care provider. Ponds was sentenced to 48 months in prison, to be followed by three years of supervised release. Guillaume was sentenced to 94 months in prison, to be followed by three years of supervised release.
Both defendants previously pled guilty to one count of conspiracy to defraud the government, in violation of Title 18, United Stated Code, Section 286, and one count of aggravated identity theft in violation of Title 18, United States Code, Section 1028A.
According to court documents, Guillaume worked for a company that performed medical laboratory tests where he had access to medical records with names, dates of birth, and Social Security numbers (personal identity information or “PII”) of individuals in the course of his employment with that company.
During the conspiracy, Guillaume stole PII from the company and sold five thousand individuals’ PII to Ponds. Guillaume knew that Ponds would use the PII for the filing of fraudulent and unauthorized tax returns. Ponds caused other individuals to file false and fraudulent tax returns with the Internal Revenue Service (IRS) seeking refunds using the PII provided by Guillaume.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
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.
Troy Man Sentenced for Illegal Possession of A FirearmRead the Press Release
TROY, NEW YORK – RICHARD S. ELY, age 27, of Troy, New York, was sentenced today to 63 months in prison by the Honorable Mae A. D’Agostino, announced United States Attorney Richard S. Hartunian, Joseph Anarumo, Special Agent-in-Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and Police Chief Steven Krokoff of the Albany Police Department. The sentence follows ELY’s February 18, 2013 guilty plea to illegally possessing a firearm.
On June 7, 2012, when executing a search warrant, police found a .22 caliber firearm and ammunition in ELY’s residence. ELY, who had two prior felony convictions (a 2007 conviction for criminal sale of a controlled substance and 2012 conviction for aggravated driving while under the influence with a child under age fifteen as a passenger), was prohibited from possessing firearms.
This prosecution resulted from an investigation conducted by the Albany Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives Albany Field Office. The case was prosecuted by Assistant United States Attorney Wayne A. Myers.
Topeka Man Sentenced on Federal Firearm ChargeRead the Press Release
TOPEKA, KAN. - A Topeka man has been sentenced to federal prison on a firearm charge, U.S. Attorney Barry Grissom said.
Joseph S. Buschbom, 31, Topeka, Kan., was sentenced Thursday to 41 months in prison. Buschbom pleaded guilty to one count of unlawful possession of a firearm after a felony conviction. In his plea, he admitted that he possessed a .380 caliber handgun on June 12, 2013, when drove into a driver’s license check lane being operated by the Topeka Police Department. He recognized one of the officers and said to him: “Give me a break.” Then he tried to drive away from the check lane with an officer partly inside in the car window. Buschbom yelled, “I can’t get stopped, I have a gun in my waistband.” Officers found later that the car was stolen and there was an outstanding warrant for Buschbom’s arrest.
Grissom commended the Topeka Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Randy Hendershot for their work on the case.Three Men Charged with Conspiracy to Possess Destructive DevicesRead the Press Release
ROME, Ga. - Brian Cannon and Cory Williamson appeared in federal court today for preliminary and bond hearings on federal charges of conspiring to receive and possess unregistered destructive devices, specifically pipe bombs and thermite devices. According to a federal complaint filed this week, the defendants sought to obtain the explosive devices as part of a militia operation.
"This case is a stark reminder of the threat we face not just from abroad, but from within our own borders from our own citizens,” said United States Attorney Sally Quillian Yates. “When plans turn violent, law enforcement must step in to protect our communities from harm. Fortunately, the FBI was able to stop these defendants before they were able to carry out their plans."
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI can no longer wait to respond to the aftermath of a radicalized individual's or group's threats. Instead, we have to bring our investigative and analytical assets to bear in getting ahead of those threats and potential attacks and do so within the rule of law. The FBI would like to thank the Bartow-Cartersville Drug Task Force, Floyd County Police Department, Polk County Police Department, Rome Police Department, and the Bartow County Sheriff's Office for their investigative and operational assistance in this matter.”
According to United States Attorney Yates, the charges, and other information presented in court: Between January 23, 2014, and February 15, 2014, Cannon, Williamson, and Terry Eugene Peace, the third defendant, participated in online chat discussions during which they discussed carrying out an operation against the government. During on online chat on January 23, 2014, Peace spoke about a mission that was to be launched in February. Peace encouraged members of the militia to review guerilla warfare tactics, small unit tactics, accumulate supplies, and prepare their families. Peace also identified targets such as “…TSA, DHS, non-emergency FEMA, road blocks, etc.” The discussions were reported to the FBI, and the FBI then began consensually monitoring the communications.
Pursuant to this mission, Peace asked a cooperating witness to provide them with 12 pipe bombs and two thermite grenades. Peace, Cannon and Williamson subsequently planned to meet with the cooperating witness in order to take possession of the items after the items were made.
On February 15, 2014, Peace, Cannon and Williamson drove to a location in Cartersville to meet the cooperating witness. Prior to their arrival, the cooperating witness was provided with 12 inert pipe bombs and 2 inert thermite devices that were constructed to look like real explosives. The three defendants were arrested as they were taking possession of the devices.
Terry Peace, 45, Brian Cannon, 37, and Cory Williamson, 28, of Rome, Ga., all had initial appearances before Walter E. Johnson, United States Magistrate Judge, on February 18. Cannon and Williamson were detained at the conclusion of today’s hearing. All three were charged in a criminal complaint on February 18, 2014.
Members of the public are reminded that the criminal complaint only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorneys Tracia King and Ryan Buchanan are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Rome Division is http://www.justice.gov/usao/gan/.
Tax Return Preparer Sentenced to 15 Years in Prison for Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Richard A. Lazzara today sentenced Kenyon Lamont Williams to 15 years in federal prison for a stolen identity refund fraud conspiracy. As part of his sentence, the court also entered a money judgment in the amount of $1,575,304.49, the proceeds of this tax fraud conspiracy. In addition, the court ordered Williams to pay $1,013,285.00 in restitution to the Internal Revenue Service.
Williams was found guilty after a jury trial on November 1, 2013.
According to testimony and evidence presented at trial, Williams worked in San Diego, California as a certified tax return preparer. Between 2007 and 2010, he worked for a national company as a part-time seasonal tax preparer. Around the beginning of 2011, Williams opened his own tax preparation service, which he operated out of his residence.
On January 25, 2012, Williams called his friend and fellow tax return preparer, Alesia Spivey, who lived in Tampa. Spivey and Williams discussed the 2012 tax season and Williams's desire to maximize the refund amounts for his clients. During this conversation, Williams solicited information from Spivey regarding methods to increase refunds. Spivey and Carlista Hawls, another co-conspirator, explained to Williams that individuals in Tampa were using a particular interest income scheme to file bogus tax returns with the IRS. Spivey advised Williams on how to fill out the tax returns to employ this interest income scheme. Between January 25 and July 19, 2012, Williams prepared and filed 168 fraudulent tax returns for tax year 2011, using bogus interest income figures provided by Spivey and Hawls. In addition, during this time period, Williams filed several hundred more tax returns from San Diego, employing other fraudulent claims to obtain refunds from the IRS.
On March 2, 2012, Spivey and Hawls flew to San Diego to meet with Williams. During the trip, Williams provided Spivey and Hawls with a list of names, dates of birth, and social security numbers for purposes of preparing and filing fraudulent tax returns in Tampa. Most of the individuals on the list were homeless, unemployed, or incarcerated. Williams also gave Spivey and Hawls a stack of U.S. Navy blood donor records so they could use the identities of servicemen and servicewomen to file bogus tax returns. Spivey and Hawls used the first list to file fraudulent tax returns with the IRS, but Spivey refused to use the list of military personnel because her son was in the U.S. Marine Corp.
Williams was arrested in January 2013, and released on bond with various conditions, including that he could not prepare or file tax returns for any third parties. Within two weeks of his release, Williams began filing tax returns for the 2013 tax season. By April, he had filed 381 tax returns, most of which were fraudulent. Upon discovery, the court revoked Williams’s bond and he remained detained pending trial.
This case was investigated by the Internal Revenue Service, Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Simon Gaugush and Adam Saltzman.
Suspect in Shooting of Highway Patrol Officer Pleads Guilty to Federal ChargeRead the Press Release
GREENSBORO, N.C. – United States Attorney Ripley Rand announced today that Mikel Edward Brady, age 23, of Durham, North Carolina, received a prison term for possession of a firearm by a felon.
On February 21, 2014, Chief United States District Judge William L. Osteen, Jr. sentenced Brady to 480 months in prison followed by 5 years of supervised release.
On February 18, 2013, a vehicle operated by Brady was stopped on Highway 70 in Durham, NC by North Carolina State Highway Patrolman Michael Potts. Brady shot Trooper Potts twice before fleeing. Brady was apprehended the following day. Potts sustained multiple injuries and recently returned to duty. Brady is currently serving a state court sentence of more than twenty-four years for shooting Trooper Potts with the firearm Brady possessed illegally.
“We will continue to work together closely and effectively with state and local law enforcement to fight violent crime,” said United States Attorney Rand. “We are dedicated to making sure that those who possess guns illegally and commit crimes with those guns receive just punishment.”
The case was investigated by the Durham Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Special Assistant United States Attorney Kyle Pousson.
St. Thomas Man and St. John Woman Arrested for Impersonating Fbi AgentsRead the Press Release
St. Thomas, USVI – Alana Liburd, 30, of St. John and Yamini Potter, 31, of St. Thomas were arrested today by agents from the Federal Bureau of Investigation (FBI) for impersonating FBI employees as part of a scheme to defraud people out of hundreds of dollars, United States Attorney Ronald W. Sharpe announced. Both Liburd and Potter appeared today in District Court in St. Thomas before U.S. Magistrate Judge Ruth Miller, and were released on a $5,000 unsecured bond.
According to court documents, Potter and Liburd told several individuals that they were FBI employees responsible for forming a new FBI Taskforce in the Virgin Islands. Potter and Liburd then recruited several individuals to become FBI agents, but only after receiving hundreds of dollars from them, which they claimed was for initial paperwork and training. Under federal law it is a felony offense to falsely assume or pretend to be an officer or employee of a federal agency and demand or obtain money or thing of value.
If convicted, Potter and Liburd each face up to three years in prison and fines of up to $250,000. The public is reminded that a criminal complaint is merely a charging document and is not evidence of guilt. A defendant is presumed innocent until proven guilty.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by the U.S. Attorney’s Office.
St. Petersburg Man Sentenced to 8 Years for Possession of Child PornographyRead the Press Release
Tampa, Florida – U.S. District Judge Richard A. Lazzara today sentenced Barry Anthony McGill (30) to 8 years in federal prison for possession of child pornography. The court also ordered McGill to forfeit two computers traceable to the offense. McGill pleaded guilty on November 26, 2013.
According to court documents, an undercover agent downloaded multiple files depicting child pornography from McGill, in August 2013. On October 1, 2013, federal agents executed a search warrant at McGill’s residence. During an interview with agents, McGill confessed to downloading images of child pornography and making them available for others via the Internet. Agents also seized McGill’s computers and found that they contained images of child pornography.
This case was investigated by the Federal Bureau of Investigation, the St. Petersburg Police Department, the Largo Police Department, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Joseph W. Swanson.
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 (CEOS), 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.projectsafechildhood.gov.
Sicily Island Farmer Sentenced to 12 Months in Prison for Lying in Order to Receive $1.2 Million in LoansRead the Press Release
ALEXANDRIA, La. –United States Attorney Stephanie A. Finley announced today that James Goode Jr., 45, of Sicily Island, La., was sentenced by U.S. District Judge Dee D. Drell, to 12 months in prison and three years of supervised release for lying to the Farm Service Agency (FSA) in order to obtain more than $1.2 million in loans. He was also ordered to pay $322,356 in restitution.
According to evidence presented at the guilty plea on October 16, 2013, Goode admitted to applying for three FSA sponsored loans totaling $1,263,800 in early 2009. On the applications for the loans, Goode withheld reporting numerous debts totaling $357,470 from government agencies, banks and private companies, which he was required by law to disclose as it affected his eligibility to receive those loans. As a result of the omissions on the loan applications, he was able to fraudulently obtain the money and defaulted on $322,356.
The U.S. Department of Agriculture, Office of Inspector General, conducted the investigation. Assistant U.S. Attorney Joseph G. Jarzabek prosecuted the case.Sex Offender Sentenced to 6 Years for Child Sexual ExploitationRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Oregon man was sentenced in federal court in Anchorage for transporting child pornography from Alaska to Canada. Aaron Bruno Finn, was sentenced to 6 years in prison, followed by 15 years of supervised release.
Finn, age 57, was a commercial truck driver, and transported over 600 images of child pornography on digital materials he carried in his truck while driving from Alaska to Oregon. He was stopped at the Canadian Border, and was arrested for importing child pornography into Canada. Finn was sentenced to serve 2 years in prison in Canada before being turned over to American authorities.
United States District Court Judge Sharon L. Gleason sentenced Finn to 72 months (6 years) in prison, after considering the 2 years of imprisonment he had already served in Canada. Judge Gleason also sentenced Finn to serve 15 years of supervised release, with specific conditions to register as a sex offender, to have no unsupervised contact with any person under the age of 18, and to participate in sex offender assessment and treatment. Finn’s truck was also administratively forfeited by Homeland Security Investigations when it was released by Canadian authorities.
The sexually explicit images of children depicted children as young as 2 years old. At sentencing on February 20, 2014, Judge Gleason stated, “This is not a victimless crime.” “It troubles me that I didn’t hear (from Mr. Finn) an understanding of how these children are being victimized.” “…for gratification of adults.”
Over 600 images of child pornography were found on Finn’s laptop computers. Several child victims who were identified in those images submitted letters describing the serious harms they had suffered as a result of being sexually exploited. Judge Gleason acknowledged those harms and the seriousness of child pornography crimes when she sentenced Finn to the 6-year prison sentence, and 15 years of supervised release.
Ms. Loeffler commends Homeland Security Investigations (HSI) for their extensive investigation of this case, and acknowledges HSI’s persistent dedication to rescuing child victims from sexual exploitation, and pursuing the sexual predators that harm children.
Second Superseding Indictment Add Five Defendants and More Robbery Charges in Case of Jewelry Store Robbery RingRead the Press Release
PHILADELPHIA - A second superseding indictment1 was unsealed today charging five more defendants with participating in an alleged jewelry store robbery ring, announced U.S. Attorney Zane David Memeger. The indictment alleges that the defendants committed eight jewelry store robberies between July 13, 2011 and November 3, 2012, of more than $3,502,544 worth of merchandise.
Darrell Williams, 43, David Story, 45, Rufus Lawson, 47, Kenneth L. Williams, 51, Anthony Lockwood, 36, and Derrick Sherrill, 41, all of Philadelphia, are charged with conspiracy to commit robbery which interferes with interstate commerce. Those defendants are also charged, along with Brian Sheed, 21, and Amin Abdur-Rahe Shabazz, 22, both of Philadelphia, with robbery which interferes with interstate commerce. Darrell Williams, Story, Lawson, Kenneth L. Williams, and Lockwood are also charged with using and carrying a firearm during a crime of violence. The second superseding indictment adds the conspiracy charge, three robbery counts, and two firearms counts. Defendants Lawson, Sheed and Shabazz were charged in the previous indictment.
The indictment details the robberies as follows: on July 13, 2011, Darrell Williams and David Story committed an armed robbery of the Tourneau jewelry store at 160 North Gulph Road, in King of Prussia, Pennsylvania; on January 9, 2012, Darrell Williams, Story, Rufus Lawson, Anthony Lockwood, and Kenneth L. Williams robbed Govberg Jewelers, located at 292 Montgomery Avenue, in Ardmore, Pennsylvania; on February 22, 2012, Darrell Williams, Story, Lawson, and Kenneth L. Williams committed an armed robbery of Bernie Robbins Jewelers, located at 595 E. Lancaster Avenue, in Saint Davids, Pennsylvania; on April 13, 2012, Darrell Williams, Story, and Lawson committed a second armed robbery of the Tourneau store in King of Prussia; on August 22, 2012, Story committed a third robbery of the Tourneau store.
If convicted, Darrell Williams, David Story, Rufus Lawson, and Kenneth L. Williams each face a maximum sentence of life in prison; Darrell Williams and Story face a mandatory
1An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
2 minimum sentence of 57 years; Lawson faces a mandatory minimum sentence of 32 years; Kenneth Williams faces a mandatory minimum sentence of seven years; defendants Lockwood, Sherrill, Sheed, and Shabazz each face a maximum sentence of 20 years in prison. All defendants also face possible fines, supervised release and special assessments.
This case is being investigated by the FBI Violent Crimes Task Force, Philadelphia Police Department, Radnor Township Police Department, Lower Merion Township Police Department, Upper Merion Township Police Department, Limerick Township Police Department, Upper Providence Township Police Department, Evesham Township (New Jersey) Police Department, Lawrence Township (New Jersey) Police Department, U.S. Federal Probation, Pennsylvania State Parole, and Philadelphia County Probation. The case is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.Release.pdf
Indictment.pdfUNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Sacramento Man Pleads Guilty to Trafficking in Counterfeit Viagra and CialisRead the Press Release
SACRAMENTO, Calif. — Rickey Lee Campbell, 60, of Sacramento, pleaded guilty Thursday to conspiracy to traffic in counterfeit goods, United States Attorney Benjamin B. Wagner announced.
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento County Sheriff’s Hi-Tech Crimes Task Force. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.
According to court documents, law enforcement received information about “Viagra” and “Cialis” being offered for sale through the Internet on Craigslist. Law enforcement later conducted controlled drug purchases of counterfeit Viagra from Campbell, who used the alias “Diamond Jim.” The residences of Campbell and his co-conspirator, Susan Yvonne Eversoll, 47, were later searched and more than 6,000 counterfeit tablets resembling Viagra and Cialis in shape, size, and color were found. Authorities also recovered computers and electronic devices the conspirators used to sell the counterfeit goods.
Campbell is scheduled to be sentenced by United States District Judge Troy L. Nunley on May 8, 2014. Eversoll, who pleaded guilty to the conspiracy on December 5, 2013, is scheduled to be sentenced by Judge Nunley on March 6, 2014. Each defendant faces up to 10 years in prison for their role in the conspiracy. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Rochester City Employee Indicted on Drug ChargeRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned a one-count indictment charging Christopher Kendrick, 37, of Rochester, N.Y., with possession with intent to distribute of five kilograms or more of cocaine. The charge carries a maximum penalty of life in prison, a fine of $10,000,000, or both.
Assistant U.S. Attorney Frank H. Sherman, who is handling the case, stated that Kendrick was arrested on February 4, 2014 after his vehicle was stopped by New York State Police on Interstate 490 near Chili. According to the indictment, a search of the vehicle uncovered 24 kilograms of cocaine in a hidden compartment. At the time of his arrest, the defendant was employed by the City of Rochester as an operations worker.
Kendrick has been ordered detained in custody pending trial by U.S. Magistrate Judge Marian W. Payson.
The complaints are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office, the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major Wayne C. Olson, and the Monroe County District Attorney’s Office, under the direction of Sandra Doorley.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Reputed Aryan Brotherhood of Texas Gang Leader and a Fellow Gang Member Plead Guilty to Federal Racketeering ChargesRead the Press Release
An alleged general of the Aryan Brotherhood of Texas gang (ABT) and a fellow gang member pleaded guilty today to racketeering charges related to their membership in the ABT’s criminal enterprise, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
James Francis Sampsell, aka “Skitz,” 44, of Odessa, Texas, and Fredrick Michal Villarreal, aka, “Big Mike,” 35, of Houston, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
According to court documents, Sampsell, Villarreal and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Sampsell, Villarreal and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other activities.
By pleading guilty to racketeering charges, Sampsell and Villarreal admitted to being members of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
At sentencing, scheduled for Oct. 7, 2014, Sampsell and Villarreal each face a maximum penalty of life in prison.
Sampsell and Villarreal are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 21 defendants have pleaded guilty.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.
The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Southern District of Texas.Reputed Aryan Brotherhood of Texas Gang Leader and A Fellow Gang Member Plead Guilty to Federal Racketeering ChargesRead the Press Release
HOUSTON – An alleged general of the Aryan Brotherhood of Texas gang (ABT) and a fellow gang member pleaded guilty today to racketeering charges related to their membership in the ABT’s criminal enterprise, announced United States Attorney Kenneth Magidson and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
James Francis Sampsell, aka “Skitz,” 44, of Odessa, and Fredrick Michal Villarreal, aka, “Big Mike,” 35, of Houston, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
According to court documents, Sampsell, Villarreal and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Sampsell, Villarreal and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other activities.
By pleading guilty to racketeering charges, Sampsell and Villarreal admitted to being members of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
At sentencing, scheduled for Oct. 7, 2014, Sampsell and Villarreal each face a maximum penalty of life in prison.
Sampsell and Villarreal are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 21 defendants have pleaded guilty.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; sheriff’s offices in Harris, Tarrant, Atascosa, Orange and Waller Counties; police departments in Alvin, Carrollton and Mesquite Texas; as well as the Montgomery and Atascosa County District Attorney’s Offices.The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Southern District of Texas.
Previously Convicted Baltimore Felon Exiled to over 16 Years in Prison on Gun and Drug ChargesRead the Press Release
Jury Found that Defendant Brandished a Gun While Selling Marijuana
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Ira Taylor, age 32, of Baltimore, Maryland, today to 195 months in prison followed by five years of supervised release for being a felon in possession of a gun and ammunition, distribution and possession with intent to distribute marijuana, and brandishing a firearm in furtherance of a drug trafficking crime.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to testimony presented at Taylor’s five day trial, on November 13, 2012, a man who was operating an unlicensed cab (a “hack”) in the 1800 block of Rosedale Street in Baltimore, attempted to purchase marijuana from Taylor. Taylor handed the man a “dime bag” of marijuana. The man took out $85 intending to get $10 to pay Taylor for the marijuana. Taylor drew a gun and pointed it at the man, demanding all the money and taking back the marijuana. Taylor ordered the man out of the car and told him to start walking towards North Avenue. According to trial testimony, the man did so, begging Taylor not to shoot him or steal his car. Taylor fired his gun at the man and slashed a tire on the car. A short time later, two Baltimore Police officers turned from North Avenue onto Rosedale Street and Taylor fled. Taylor was found hiding under a row of bushes and arrested. Police found a loaded .38 caliber revolver, with four live cartridges and one spent cartridge, on the ground nearby. Officers searched Taylor and recovered: two small bags of marijuana, $85 in balled-up cash, $19 in neatly-folded cash and a knife.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Scott Lemmon, Benjamin Block, Debra Dwyer and Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.
Postal Carrier Charged with Stealing from MailRead the Press Release
PITTSBURGH - A Leetsdale, Pa., woman has been indicted by a federal grand jury in Pittsburgh on charges of theft of mail by postal employee, United States Attorney David J. Hickton announced today.
The three-count indictment, returned on Feb. 18, named Michelle M. Frizzell, 44, as the sole defendant.
According to the indictment, Frizzell, being an employee of the United States Postal Service, did steal, abstract and remove gift cards from greeting cards on two separate occasions. In addition, she was also charged with embezzling a greeting card on another occasion.
The law provides for a maximum total sentence for each count of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The United States Postal Service – Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Possessed Child PornographyRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, pleaded guilty in federal court to a charge of Possession of Material Depicting the Sexual Exploitation of a Minor, United States Attorney David J. Hickton announced today.
Michael Powers, 65, of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that, on or about June 21, 2013, Powers knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct.
Judge McVerry scheduled sentencing for June 13, 2014, at 1:30 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Powers.
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.justice.gov/psc.
Philadelphia Woman Sentenced for <br /> Her Role in Deadly FirebombingsRead the Press Release
Kidada Savage, 31, of Philadelphia, was sentenced today to life in prison for her role in the Oct. 9, 2004, firebombing that killed six members of a federal witness’s family. Savage is the sister of Kaboni Savage, who ordered the firebombing and who was sentenced to death for 12 counts of murder in aid of racketeering.
Acting Assistant Attorney General Mythili Raman for the Justice Department’s Criminal Division, United States Attorney Zane David Memeger of the Eastern District of Pennsylvania and Special Agent in Charge Edward J. Hanko of the FBI’s Philadelphia Division made the announcement.
Kidada Savage was convicted on May 13, 2013, of six counts of murder in aid of racketeering, all related to the firebombing of Eugene Coleman’s family home. Coleman was a federal witness at the time. Six people, including four children, were killed in the arson. Kaboni and Kidada Savage were also convicted of conspiracy to commit murder in aid of racketeering, retaliating against a witness by murder and using fire to commit a felony.
Kidada Savage acted as a go-between for her brother, who was in federal custody awaiting a drug trial, and Lamont Lewis, who committed the firebombing. Lewis pleaded guilty and is awaiting sentencing. Robert Merritt and Steven Northington were also convicted in the case. Northington was sentenced to life; Merritt is awaiting sentencing.
The case was investigated by the FBI, the Internal Revenue Service – Criminal Investigation Division, the Philadelphia Police Department, the Philadelphia District Attorney’s Office and the Maple Shade Police Department in New Jersey. The United States Bureau of Prisons, United States Marshals Service and the Philadelphia / Camden High Intensity Drug Trafficking Area Task Force also assisted in the investigation.
The case was prosecuted by Trial Attorney Steve Mellin of the Criminal Division’s Capital Case Section and Assistant U.S. Attorneys David E. Troyer and John M. Gallagher.Parker County Man Charged with Hate Crime for Assault Based on Victim's Sexual OrientationRead the Press Release
FORT WORTH, Texas – Brice Johnson, 19, of Springtown, Texas, has been charged in a federal criminal complaint with willfully causing bodily injury to a person because of the actual or perceived sexual orientation of that person, the Justice Department’s Civil Rights Division, Sarah R. Saldaña, U.S. Attorney for the Northern District of Texas, and Diego Rodriguez, Special Agent in Charge of FBI Dallas Division announced.
The complaint was filed on Feb. 12, 2014, in U.S. District Court in Fort Worth, Texas. Johnson has been in state custody since his arrest on Sept. 10, 2013, and he made his initial appearance in federal court yesterday afternoon.
“Suspected crimes of this nature will simply not be tolerated,” said U.S. Attorney Saldaña. “With the assistance of all our partners, hate crimes will be prosecuted to the fullest extent of the law.”
“We will thoroughly investigate all suspected violations of the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act in our community,” said SAC Rodriguez.
According to the affidavit filed with the criminal complaint, in the early morning hours of Sept. 2, 2013, the adult male victim, identified as A.K., connected with Johnson through the cell phone application for MeetMe.com. A.K.’s MeetMe.com page indicated he was a gay man, while Johnson’s page indicated he was not gay. During their communications, Johnson said that he was interested in engaging in sexual activity with A.K. He invited A.K. to his home, gave A.K. his cell phone number and address and they exchanged text messages planning their sexual activity.
After A.K. showed up at the house, Johnson severely beat him, then put him into the trunk of A.K.’s car and drove him to a friend’s home. Based on ligature marks on A.K.’s wrists, it appears that he was bound with an electrical cord while he was in the trunk of the car. Individuals at the home told Johnson to take A.K. to the hospital or they would call the police, and Johnson eventually drove the victim to an Emergency Medical Services station in Springtown.
A.K. was hospitalized for 10 days in Fort Worth, and he was diagnosed and treated for multiple skull and facial fractures. The investigation revealed that on the night of the incident, Johnson saved A.K.’s cell phone number using a gay slur as a contact name and Johnson later stated that he was playing a prank on the victim because of his sexual orientation, again using a gay slur when referring to A.K. According to the affidavit, A.K. said that he had no physical contact with Johnson prior to the attack.
A federal complaint is a written statement of the essential facts of the offenses being charged and must be made under oath before a magistrate judge. The defendant is presumed innocent until proven guilty. However, the statutory maximum penalty upon conviction for the offense as charged is 10 years in federal prison and a $250,000 fine. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment, and an indictment could include other charges that increase the maximum penalty.
The investigation is being conducted by the FBI, the Springtown Police Department and the Parker County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Cara Foos Pierce and Trial Attorney Saeed Mody of the Civil Rights Division.
(Download Factual Basis)
Orange County Man Sentenced in White Plains Federal Court to 13 Years in Prison for Receiving and Possessing Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MICHAEL LOCATENA was sentenced yesterday before United States District Judge Cathy Seibel in White Plains federal court to 13 years in prison for receiving and distributing child pornography.
U.S. Attorney Preet Bharara stated: “Those who receive and distribute child pornography endanger and victimize the most vulnerable in our communities. The stiff prison sentence imposed on Michael Locatena should serve to deter others who would engage in these crimes.”
According to the the Indictment and statements made during court proceedings:
LOCATENA, 46, of Chester in Orange County, New York, downloaded at least 1,400 images and videos of child pornography from the Internet using a peer-to-peer file-sharing program, and saved the child pornography on external hard drives.
Yesterday’s sentencing followed LOCATENA’s guilty plea on February 7, 2012, and a three-day sentencing hearing that began in July 2013 and continued over the last two days. At the sentencing hearing, Judge Seibel heard testimony from a minor victim concerning prior sexual abuse of the victim by LOCATENA. Judge Seibel concluded that the Government demonstrated by a preponderance of the evidence that the abuse occurred, and concluded that the conduct should be considered in determining the appropriate sentence for LOCATENA.
LOCATENA also testified at the hearing. He maintained that he did not engage in inappropriate activity with the minor victim, denied any sexual interest in children, and insisted that he had “inadvertently” downloaded all of the child pornography. In sentencing LOCATENA, Judge Seibel stated that much of LOCATENA’s testimony was “incredible” and “preposterous,” and she made a finding that he committed perjury during his testimony.
Mr. Bharara thanked the FBI, the Rockland County Computer Crimes Task Force, the New York State Police, the Orange County District Attorney’s Office, and the Orange County Child Protective Services for their work in the investigation.
In June 2011, LOCATENA was previously convicted, after a jury trial, in Orange County of Criminal Possession of a Loaded Firearm in the 2nd Degree and sentenced to 4 years’ imprisonment. That sentence will run concurrently with the sentence imposed today.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorney Marcia Cohen is in charge of the prosecution.
Oglala Man Sentenced for Felony Child Abuse and NeglectRead the Press Release
United States Attorney Brendan V. Johnson announced that an Oglala, South Dakota, man convicted of Felony Child Abuse and Neglect was sentenced on February 20, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Yellow Hawk was immediately turned over to the custody of the U.S. Marshals Service.
Norman Yellow Hawk, age 48, was sentenced to 10 years of imprisonment, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Between January and December 2007, in Allen, South Dakota, Yellow Hawk knowingly sexually abused one of his children.
The investigation was conducted by the Federal Bureau of Investigation. The sentencing was handled by Supervisory Assistant U.S. Attorney Gregg S. Peterman.
Nine Trey Gang Leader, Enforcer and Cocaine Supplier Convicted of Multiple Racketeering OffensesRead the Press Release
ALEXANDRIA, Va. – Thaddaeus Snow, a/k/a “Storm,” 34, of Manassas, Va., and William Sykes, a/k/a “Black,” 29, of Bealeton, Va., were convicted today by a federal jury of charges that included conspiracy to commit racketeering, violence in aid of racketeering, robbery, conspiracy to distribute cocaine base, conspiracy to commit sex trafficking by force and coercion, and firearms offenses. Jameel Aleem, a/k/a “Nino B,” 33, of Washington, D.C., was convicted of conspiracy to distribute cocaine base.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police, made the announcement after the verdict was accepted by United States District Judge Leonie M. Brinkema.
The defendants face a maximum penalty of life when they are sentenced on May 9, 2014. Snow faces a mandatory minimum of forty years in prison, Sykes faces a minimum of twenty years, and Aleem is subject to a mandatory term of ten years.
“These defendants and their fellow gang members threatened the safety of our communities by committing acts of violence, dealing drugs, and dehumanizing women through prostitution by force and coercion,” said Acting U.S. Attorney Boente. “The 37 convictions that have been obtained against members of the Nine Trey Gangsters over the past year reflect the outstanding cooperation of federal, state and local law enforcement to combat these pernicious crimes.”
“The multiple convictions returned by the jury today send a clear message to members of these violent criminal enterprises: we will not tolerate your illegal activities,” said Assistant Director in Charge Parlave. “The FBI, through the Northern Virginia Gang Task Force and our partners in local law enforcement, will continue to track down and arrest these brutal gang members who resort to using violent acts in an attempt to threaten our communities.”
Snow, Sykes and Aleem were indicted by a federal grand jury on Sept. 26, 2013, along with twenty-one other members and associates of the Nine Trey Gangsters street gang, on charges of conspiracy to commit racketeering, violence in aid of racketeering, conspiracy to commit sex trafficking, conspiracy to commit robbery, conspiracy to distribute 280 grams or more of crack cocaine and multiple counts related to the possession and use of firearms.
According to court records and evidence presented at trial, the Nine Trey Gangsters are a Bloods street gang set of the United Blood Nation that was founded in New York City in the early 1970’s. Thaddaeus Snow led a “line-up” of the Nine Trey Gangsters, which operated as a criminal enterprise in Virginia and committed criminal activity in multiple states. From 2008 until the date of the indictment, Snow’s line-ups of Nine Trey gangsters engaged in racketeering activity involving the sex trafficking of women using force and coercion in Virginia, Maryland, North Carolina, New York and elsewhere; the commission of robberies; and the distribution of cocaine, crack, marijuana, heroin, ecstasy and prescription painkillers. The evidence at trial also showed that Snow, Sykes and other Nine Trey Gangsters dealt in counterfeit United States currency and used counterfeit currency to finance wholesale drug purchases.
In addition, the evidence at trial showed that Snow and his subordinate gang members undertook several acts of violence. On or about April 1, 2010, Snow directed Nine Trey Gangsters to give a female victim a “buck-fifty,” consisting of slashing the woman’s face with a knife from mouth to ear with the aim of requiring 150 stiches to close the wound, because the woman had stolen proceeds of Snow’s drug sales and used some of Snow’s drug supply. The slashing was carried out by Sykes. Sykes and other gang members beat a man unconscious who may have stolen drugs from a gang member, and Sykes also committed a shooting on April 12, 2010, after the shooting victims became involved in a dispute with one of the gang members. Additionally, Sykes slapped and choked a prostitute when she concealed money she earned from him.
Snow, Sykes and Aleem were convicted following a trial that began on Feb. 11, 2014. With the conviction of these three defendants, all twenty-four individuals named in the Sept. 26, 2013 indictment have now been convicted. The following individuals named in the indictment previously pleaded guilty, admitted their involvement with the Nine Trey Gangsters and have been sentenced in federal court: Antawn Minor, a/k/a “Noid,” 33, of Manassas, Va., pleaded guilty to conspiracy to distribute crack cocaine. He was sentenced to 168 months in prison.
Deontae Holland, a/k/a “D-Boy,” 27, of Bealeton, Va., pleaded guilty to conspiracy to commit racketeering and conspiracy to distribute crack cocaine. He was sentenced to 15 years in prison.
Markeith Kerns, a/k/a “LTK,” 20, of Summerduck, Va., pleaded guilty to conspiracy to commit racketeering and conspiracy to distribute crack cocaine. He was sentenced to 10 years in prison.
Janee Yates, a/k/a “Alizia,” 24, of Warrenton, Va., pleaded guilty to conspiracy to commit racketeering and conspiracy to distribute crack cocaine. She was sentenced to 10 years in prison.
Nicole Yates a/k/a “Merlot,” 27, of Fairfax, Va., pleaded guilty to conspiracy to commit sex trafficking and conspiracy to commit robbery. She was sentenced to 10 years in prison.
Aayron Marshal, a/k/a “Mook ,” 23, of Warrenton, Va., pleaded guilty to conspiracy to distribute crack cocaine. He was sentenced to 10 years in prison.
Lionel Ritchie, a/k/a “Boogie,” 30, of Remington, Va., pleaded guilty to conspiracy to distribute crack cocaine. He was sentenced to 7 years in prison.
Candy Minor, 29, of Fredericksburg, Va., pleaded guilty to conspiracy to commit sex trafficking. She was sentenced to two years in prison.The following individuals named in the indictment previously pleaded guilty, admitted their involvement with the Nine Trey Gangsters and are awaiting sentencing: Curtis Martino, a/k/a “Curtis Dodd,” a/k/a “Red Rum,” 30, of Elkridge, Md., pleaded guilty to conspiracy to commit racketeering and discharging a firearm during a crime of violence.
George Williams, a/k/a “Champ,” 29, of Bealeton, Va., pleaded guilty to conspiracy to commit racketeering and discharging a firearm during a crime of violence.
William Sharp Manning a/k/a “Ill Will,” 25, of Warrenton, Va., pleaded guilty to conspiracy to commit racketeering and conspiracy to distribute crack cocaine.
James Watson, a/k/a “Black Kat,” 35, of Gainesville, Va., pleaded guilty to conspiracy to commit racketeering.
Christopher Head a/k/a “Briss,” 26, of Washington, D.C., pleaded guilty to conspiracy to commit racketeering and conspiracy to distribute crack cocaine.
Kaleef Tweedy, a/k/a “Bloody Tweed,” 24, of Dumfries, Va., pleaded guilty to conspiracy to commit sex trafficking, conspiracy to commit robbery and discharging a firearm during a crime of violence.
Justin Finley, a/k/a “J Mo,” 24, of Manassas, Va., pleaded guilty to conspiracy to distribute crack cocaine.
Stephon Greene a/k/a “Blitz,” 21, of Manassas, Va., pleaded guilty to conspiracy to distribute crack cocaine.
LaTonya Snow, a/k/a “Lady Dynasty,” 30, of Manassas, Va., pleaded guilty to conspiracy to transport a person interstate for the purpose of prostitution.
Devante Jordan, a/k/a “Trey,” 21, of Alexandria, Va., pleaded guilty to conspiracy to commit robbery and discharging a firearm during a crime of violence.
Joshua Pendleton Brooks a/k/a “Wacko,” 27, of Manassas, Va., pleaded guilty to conspiracy to distribute crack cocaine.
Deyonka Gaskins, 29, of Manassas, Va., pleaded guilty to conspiracy to distribute crack cocaine.
Gracier Isique, 29, of Manassas, Va., pleaded guilty to conspiracy to distribute cocaine.The 24 defendants convicted in this indictment brings the total number of Nine Trey Gangster gang members and associates recently convicted in the Eastern District of Virginia to 37 individuals. On April 2, 2013, an indictment was filed in Richmond against eight Nine Trey Gangster gang members and associates charging them with conspiracy to distribute 280 grams or more of crack cocaine. All eight of those defendants have previously pleaded guilty to the drug conspiracy charge. Five other Nine Trey Gangsters have been convicted in Richmond for illegal possession of firearms and dealing in counterfeit currency.
This case was investigated by the FBI’s Washington Field Office and the Fairfax County Police Department, with assistance from the Northern Virginia Regional Gang Task Force, Hampton Police Department, Fauquier County Sheriff’s Office, Manassas City Police Department and the United States Marshals Service. Assistant United States Attorneys Adam B. Schwartz and Dennis M. Fitzpatrick are prosecuting the Alexandria defendants on behalf of the United States. Assistant United States Attorneys Angela Mastandrea-Miller and Adam B. Schwartz are prosecuting the Richmond defendants.This case is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation dubbed Operation “Ruby Red,” which has been focusing on the illegal distribution of narcotics by alleged organized crime members.
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.New Jersey Man Charged in Violation of Mann ActRead the Press Release
NEWARK, N.J. – Federal agents arrested a Middlesex County, N.J., man today in Mercer County, N.J., for violating the Mann Act, a federal law prohibiting interstate transportation of a minor for illicit purposes, U.S. Attorney Paul J. Fishman announced.
Jayme Shannon, 51, of East Brunswick, N.J., was arrested at a residence in East Windsor, N.J., this morning by FBI agents and detectives with the Bergen County Prosecutor’s Office on a federal complaint charging him with interstate transportation of a minor for illicit purposes. Shannon is scheduled to make his initial appearance before U.S. Magistrate Judge Mark Falk in Newark federal court this afternoon.
According to the Complaint:
In September 2013, Shannon met the 15-year old victim in the internet chat room “Chatavenue.com” and continued to communicate with the victim in September and October 2013.
On Oct. 14, 2013, Shannon arranged to meet the victim at the Skyview Motel in Fort Lee, N.J. After renting a motel room that morning, Shannon drove from New Jersey to New York, where he picked up the victim. Shannon then drove the victim from New York to the motel for the purpose of engaging in sexual conduct and did, in fact, engage in sexual conduct with the victim in the motel.
On Oct. 14, 2013, police officers found Shannon and the victim inside the Skyview Motel. Fort Lee Police arrested Shannon, who was charged in New Jersey Superior Court with sexual assault and endangering the welfare of a child.
The federal count with which Shannon is charged carries a minimum penalty of 10 years in prison and a maximum penalty of life imprisonment.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; the Bergen County Prosecutor’s Office, under the direction of Prosecutor John L. Molinelli; and the Fort Lee Police Department, under the direction of Chief Keith Bendul, with the investigation leading today’s arrest.
The government is represented by Assistant U.S. Attorney Josh Hafetz of the U.S. Attorney’s General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
14-057
Shannon Complaint
New Jersey Doctor Who Provided Spa Services Pleads Guilty in Medicare Fraud SchemeRead the Press Release
Dr. Chang Ho Lee, 68, of Palisades Park, N.J., pleaded guilty today to health care fraud and agreed to forfeit more than $3.4 million in fraud proceeds.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Loretta Lynch of the Eastern District of New York, Assistant Director in Charge George Venizelos of the FBI’s New York Field Office and Special Agent in Charge Thomas O’Donnell of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
According to court documents, Lee, who is a medical doctor, and two others recruited patients by offering free lunches and recreational classes and provided them with spa services, such as massages and facials, then falsely billed Medicare for more than $13 million using those patients’ Medicare numbers. Lee and the others billed Medicare for physical therapy, lesion removals and other services that were neither medically necessary nor provided. The scheme took place at three clinics: URI Medical Center and Sarang Medical PC in Flushing, N.Y., and 999 Medical Clinic in Brooklyn, N.Y. Lee received more than $3.4 million through the submission of the fraudulent claims.
Lee is scheduled to be sentenced by United States District Judge Raymond J. Dearie of the Eastern District of New York on June 13, 2014. At sentencing, he faces a maximum sentence of 10 years in prison and approximately $3.4 million in mandatory restitution.
The case was investigated by the FBI and HHS-OIG and 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 Eastern District of New York. The case is being prosecuted by Senior Trial Attorney Nicholas Acker and Trial Attorney Bryan D. Fields from 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, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.New Haven Man Sentenced to More Than Four Years in Prison for Distributing Cocaine and HeroinRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that EMORY JAMES, also known as “Emmo,” 42, of New Haven, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 55 months of imprisonment, followed by three years of supervised release, for trafficking narcotics.
According to court documents and statements made in court, this matter stems from “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms. More than 100 individuals were charged as a result of the investigation.
On September 19, 2013, JAMES pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, cocaine and heroin.
JAMES’s criminal history includes at least seven felony convictions, including five drug-related offenses.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
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(203) 821-3722 [email protected]New Britain Transportation Company Manager Imprisoned for Falsifying and Destroying RecordsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DARIUSZ SZTEBOROWSKI, the manager of New Britain-based transportation company Wisla Express, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 14 months of imprisonment, followed by three years of supervised release, for falsifying and destroying driver records that are required to be maintained under federal motor carrier safety regulations for inspection. SZTEBOROWSKI was also ordered to pay a $20,000 fine.
On January 17, 2014, Wisla Express was sentenced to a five-year term of probation and ordered to pay a $75,000 fine.
“Wisla Express drivers, at Mr. Szteborowski’s direction, routinely drove many more hours than allowed by federal transportation safety regulations,” stated U.S. Attorney Daly. “Mr. Szteborowski then attempted to cover up these violations by submitting numerous false driver logs to federal regulators. Driver safety regulations for commercial motor vehicle carriers exist to protect not only passengers, but everyone who travels our nation’s roads. We believe that this investigation and prosecution may have prevented a highway tragedy caused by fatigued drivers, and we hope that this sentence will serve as fair warning to other commercial operators.”
According to court documents and statements made in court, Wisla Express, located at 157 Broad Street in New Britain, is a commercial motor carrier that employs drivers to operate vans and minibuses to transport individuals to and from airports, and tour buses carrying passengers to locations outside of Connecticut. SZTEBOROWSKI, a manager of Wisla Express was responsible for the day-to-day operations of the company, including scheduling driving assignments and maintaining the company’s driving records.
The Federal Motor Carrier Safety Administration (“FMCSA”), a division of the U.S. Department of Transportation, administers and enforces the federal commercial motor vehicle laws and regulations to ensure that commercial motor vehicle carriers and drivers fully comply with the responsibilities imposed on them to operate their vehicles in a safe and unimpaired manner. Federal regulations prohibit drivers from driving in excess of certain maximum allowable driving hours over defined periods, and require commercial motor carriers to maintain truthful and accurate driving records.
Between September 2008 and September 2010, SZTEBOROWSKI scheduled and assigned drivers to trips knowing that the drivers would be exceeding the regulated limits of on-duty driving time, and also instructed drivers and others to falsify driving logs by recording that the drivers were off-duty during times when they were, in fact, driving. In order to pay drivers for time actually spent working for Wisla Express, SZTEBOROWSKI instructed drivers to submit separate pay sheets and notes that accurately detailed their hours. SZTEBOROWSKI then destroyed the pay sheets and other documentation that accurately recorded the drivers’ hours.
In response to an FMCSA investigation of Wisla Express that was initiated in August 2010, SZTEBOROWSKI produced the falsified driver logs and withheld other records that would conflict with the logs.
On February 22, 2013, SZTEBOROWSKI, 50, of Rocky Hill, pleaded guilty to one count of submitting a false statement to the U.S. Department of Transportation. On February 25, 2013, Wisla Express pleaded guilty to the same charge.
During his three-year term of supervised release, SZTEBOROWSKI and his wife cannot be involved, directly or indirectly, in Wisla Express or any other business under the jurisdiction of the U.S. Department of Transportation.
U.S. Attorney Daly commended the investigative efforts of the agents of the New England Regional Office of the U.S. Department of Transportation, Office of Inspector General, and the Federal Motor Carrier Safety Administration. The Connecticut Department of Motor Vehicles Commercial Safety Division provided valuable assistance to the investigation.
This matter was prosecuted by Assistant U.S. Attorneys Felice M. Duffy and David E. Novick.
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(203) 821-3722 [email protected]Nelson County, Kentucky, Felon Guilty of Possession with the Intent to Distribute 400 Pounds of MarijuanaRead the Press Release
LOUISVILLE, Ky. – A Nelson County, Kentucky, felon pleaded guilty in United States District Court today to a single count indictment charging him with possession and intent to distribute marijuana announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to information presented in court, Joseph P. O’Bryan, age 45, attempted to sell 400 pounds of marijuana for $320,000 to a law enforcement confidential informant on October 8, 2013. At the time of the sale, defendant O’Bryan was on supervised release for a prior, federal felony conviction. According to conduct stipulated in the plea agreement, O’Bryan will forfeit $22,100 to the United States for money received during the sale of 22 pounds of marijuana to a law enforcement confidential informant on February 28, 2013.
If convicted at trial, defendant O’Bryan would face a mandatory minimum sentence of five years in prison, a maximum sentence of 40 years in prison, and a period of supervised release up to and including life.
O’Bryan is scheduled for sentencing before Senior Judge Charles R. Simpson III, on Friday, May 16, 2014 at 3:00pm in Louisville.
This case is being prosecuted by Assistant United States Attorney Stephanie Zimdahl and was investigated by the United States Drug Enforcement Administration (DEA).
Muskogee Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JOSHUA RAY HIGGINS, age 27, of Muskogee, Oklahoma, pled guilty to Possession with Intent to Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
Charges arose from an investigation by the Muskogee Police Department and the Drug Enforcement Administration. The defendant was indicted in December, 2013.
The Indictment alleged that on or about November 15, 2013, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II Controlled Substance.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not less than 5 and not more than 40 years imprisonment and/or up to a $5,000,000 fine.
Assistant United States Attorney Shannon Henson represented the United States.
Montville Man Who Illegally Received Social Security Benefits Is SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN FRANCIS WILLIAMS, 58, of Montville, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to three years of probation for illegally receiving Social Security benefits. As part of his sentence, WILLIAMS was ordered to pay restitution in the amount of $42,156.20.
According to court documents and statements made in court, the defendant’s birth name was Russell Fithian. Sometime prior to 1993, the defendant obtained the Social Security card and birth certificate of a John Francis Williams. In 1993, the defendant applied for and received a replacement Social Security card in the name of John Francis Williams. Thereafter, he used the name John Francis Williams.
In August 2009, the defendant applied for Social Security retirement income benefits under the name of John Francis Williams, who would have turned 62 that year and had reached eligible retirement age. The defendant was 54 at the time of his application and was not eligible for retirement benefits under his true identity. The defendant thereafter received monthly benefits, totaling $42,156.20, until February 2013.
In 2013, the defendant legally changed his name to John Francis Williams.
On October 8, 2013, WILLIAMS pleaded guilty to one count of theft of government property.
This matter was investigated by the Office of the Inspector General for the Social Security Administration and was prosecuted by Assistant U.S. Attorney Felice Duffy.
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(203) 821-3722 [email protected]Meth Dealer Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Haley Nicole Jordan, 33, of Creola, was sentenced today in federal court for her involvement in the possession with intent to distribute methamphetamine ice. Jordan was originally indicted in two counts, conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine ice. She took her case to trial in federal court in November of 2013, which resulted in a mistrial. Jordan entered into a guilty plea to the charge of possession with intent to distribute just before the second trial commenced in December of 2013.
At the sentencing hearing today, United States District Court Judge Kristi K. Dubose found the advisory guideline range to be 78 to 97 months. The judge imposed a sentence of 24 months imprisonment, to be followed by a three-year term of supervised release. The judge ordered that Jordan undergo a period of six months’ drug counseling and treatment at the Home of Grace as a condition of her supervised release, to commence when she is released from prison. Jordan was not ordered to pay a fine, but the judge ordered that Jordan pay the mandatory $100 special assessment.
The case was investigated by the Mobile County Sheriff’s Office. It was prosecuted in the United States Attorney=s Office by Assistant United States Attorney Gloria Bedwell.
McLaughlin Man Charged with Assault with A Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
River Grey Bull, age 19, was indicted on February 12, 2014. He appeared before U.S. Magistrate Judge William D. Gerdes on February 18, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Grey Bull is alleged to have assaulted a man with a knife in January 2014. The charge is merely an accusation and Grey Bull is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy Morley is prosecuting the case.
Grey Bull was released on bond. A trial date has not been set.
Maryland Man Sentenced to 49 Years in Prison for First-Degree Murder While Armed in 2012 Shooting in Southeast Washington-Victim and Defendant Were Close Family Friends-Read the Press Release
WASHINGTON – Grant Johnson, 39, of Bladensburg, Md., was sentenced today to 49 years in prison on charges of first-degree premeditated murder while armed and other offenses for the May 2012 slaying of a Maryland man, U.S. Attorney Ronald C. Machen Jr. announced.
Johnson was found guilty by a jury in October 2013, following a trial in the Superior Court of the District of Columbia. In addition to the first-degree murder charge, the jury found Johnson guilty of second-degree murder while armed, armed robbery, and several firearms offenses. Johnson was sentenced by the Honorable Herbert B. Dixon, Jr. Upon completion of his prison term, Johnson will be placed on five years of supervised release.
According to the government’s evidence, the victim, Ricardo Lancaster, 32, drove his company truck to the 800 block of Burns Street SE on May 30, 2012. He arrived at 11:22 p.m. with several hundred dollars to purchase a quantity of marijuana from Johnson. Johnson and Mr. Lancaster were old family friends, having grown up together in the 700 block of Adrian Street SE. Since childhood, Johnson was widely known as the best friend of Mr. Lancaster’s brother.
Sitting in the passenger seat of Mr. Lancaster’s company truck, Johnson shot Mr. Lancaster once in the right cheek at close range. He then went to the driver’s side of the vehicle, where Mr. Lancaster was still seated, and through the open window, shot him, again at close range, in the neck. Mr. Lancaster was found dead the next morning, still seated in the driver’s seat of his company vehicle on Burns Street. His personal cell phone was missing and he had $3 on his person. No marijuana was in the car. Hours after the murder, Johnson provided his girlfriend with several hundred dollars in cash for his share of the rent.
When asked by his best friend – Mr. Lancaster’s brother – whether he had seen or spoken to Mr. Lancaster prior to the murder, Johnson lied, claiming that he had not. The government’s evidence included cell phone records that showed that Mr. Lancaster and Johnson were in repeated contact the night of the murder, and Johnson’s DNA was found on a Doritos bag discarded on the passenger side floor of Mr. Lancaster’s company vehicle.
In announcing the sentence, U.S. Attorney Machen praised the work of the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. He also expressed appreciation to the FBI’s Cellular Analysis Survey Team. He commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Marian Russell, Sandra Lane, Kendra Johnson, and Fern Rhedrick; Lead Paralegal Specialist Sharon Newman; Victim/Witness Advocates Marcia Rinker and Jennifer Clark; Victim Witness Security Specialist Katina Adams-Washington; Former Intelligence Specialist Lawrence Grasso and Intelligence Specialist Zachary McMenamin, and Litigation Technology Specialist Thomas “Ron” Royal. Finally, he recognized the work of Assistant U.S. Attorneys Kimberley Nielsen and Robert Feitel, who investigated the case and prosecuted the case at trial.
14-046Manhattan U.S. Attorney Announces Extension of Claims Process for Madoff Victim Fund to Give Victims Additional Time to File ClaimsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the claims deadline for petitions for remission of forfeiture to the Madoff Victim Fund (the “MVF”) will be extended to April 30, 2014. This extension was recommended by Special Master Richard C. Breeden, who is administering the MVF on behalf of the Department of Justice.
To date, the MVF has received approximately 9,000 claims from victims of the crimes committed in connection with the fraud at Madoff Securities. Approximately 94% of claims come from individuals who either did not file a bankruptcy claim or whose claim was denied as an indirect investor. Roughly 75% of claimants have recovered nothing, or less than 10% of their losses, since Madoff Securities collapsed. Approximately 60% of claims have come from residents of the United States, with the remaining 40% of claims coming from victims of the fraud in more than 75 countries.
In announcing the extension, Manhattan U.S. Attorney Bharara said: “We are very pleased at the response the Madoff Victim Fund has received from thousands of victims of this historic fraud. The MVF is reaching a much broader universe of victims than previous efforts, including many indirect investors who have not yet recovered anything in the five years since Madoff’s arrest. The theft of these victims’ savings was every bit as real as for direct investors, and we are determined to help every genuine victim who lost money as a result of the Madoff fraud.”
Special Master Breeden noted: “Claims are pouring in to MVF from all over the world. Many of these claims are proving quite complex, often with investments that flowed through three or more intermediaries. The average claim we have received to date includes more than 75 pages of transactions and financial records. Therefore, we believe that thousands of additional claimants will benefit from having a bit more time to complete and file properly documented claims.”
Information concerning MVF and its claim process is published at www.madoffvictimfund.com. Eligibility is open to all persons who invested their own money in Madoff Securities either directly, or indirectly through feeder funds, family trusts or other pooled investment vehicles, and who lost their funds as a direct result of the collapse of the firm. Claimants must be the “ultimate investors” who lost their own funds in the collapse of the firm, not intermediaries who managed money on behalf of others or claims purchasers after the fact. Thus, banks, insurance companies, feeder funds, trust companies, hedge funds and similar entities are generally not eligible to recover from MVF, while the actual individuals whose money was lost by investing through such firms are eligible to seek a recovery. Frequently Asked Questions on the MVF’s website outline the specific criteria for eligibility and measurement of net losses. Claim forms are available for download at www.madoffvictimfund.com. All final decisions concerning claims will be made by the Department of Justice.
After reading the materials published on the website, potential claimants can email additional questions to [email protected], or call MVF’s hotline at 001 (866) 624-3670.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The Madoff Securities cases are being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Matthew L. Schwartz, Randall W. Jackson, John T. Zach, Arlo Devlin-Brown, Christopher Frey, and Paul M. Monteleoni are in charge of the cases.
Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Insider Trading Charges Against Former Senior Managing Director of Investment BankRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a criminal Complaint charging FRANK PERKINS HIXON, JR., a former Senior Managing Director of Evercore Group, LLC, a subsidiary of Evercore Partners Inc. (“Evercore”), with insider trading offenses. Specifically, HIXON is alleged to have used inside information to trade and cause others to trade in the securities of Evercore, Westway Group Inc. (“Westway”), and Titanium Metals Corporation (“Titanium”). HIXON is also charged with making false statements to FBI agents. The defendant was arrested on these charges this morning at his apartment in New York, New York, and presented this afternoon in Manhattan federal court.
Manhattan U.S. Attorney Preet Bharara said: “As we have often said, those like Frank Perkins Hixon, Jr., who illegally manipulate the market by allegedly trading on material non-public information exploit law-abiding investors and traders. In this case, the alleged wrongdoing was compounded, when Hixon tried to evade detection by lying to investigators and to his company.”
Assistant Director-in-Charge George Venizelos said: “This is the same old song: Another high-ranking finance official allegedly broke the law and abused his position in a thinly veiled attempt to make illegal trades. The alleged use of material information gleaned through confidential meetings at Evercore was deceptive and more importantly illegal. When Hixon was confronted about his back door trades, he allegedly doubled down and lied to the FBI agents who interviewed him. The integrity of our markets remains a paramount concern of the FBI. We’ll continue to pursue these cases until that message is crystal clear.”
According to the allegations contained in the Complaint unsealed today in Manhattan federal court:
Between April 2010 and January 2014, HIXON was a Senior Managing Director with the Mining and Metals Group of Evercore Group, LLC. HIXON used material non-public information that he acquired as part of his employment with Evercore to trade and cause trades in brokerage accounts belonging to the mother of his young child (“Individual A”), who lived in Austin, Texas, and to HIXON’s close relative (“Individual B”), who lived in Johns Creek, Georgia.
In 2011, HIXON led an Evercore team in advising Westway about a non-public offer from another company (“Company A”) to purchase some of its business components and, more generally, in connection with potential transactions concerning Westway’s other business components. Company A’s offer was made in early September 2011, and a Special Committee was formed around that time to consider the offer and other strategic alternatives. Those developments were not announced publicly until December 15, 2011. Meanwhile, between October 21 and December 15, 2011, HIXON purchased, and caused to be purchased, 229,000 shares of Westway for Individual A’s brokerage account by logging into Individual A’s account from various locations, including Evercore’s Manhattan office. As the negotiations for the contemplated Westway transactions became protracted, HIXON sold and caused to be sold about 140,000 of the Westway shares that had accumulated in Individual A’s account, for a profit of approximately $260,000.
In October 2012, HIXON was invited, along with other Evercore personnel, to meet with a Special Committee of Titanium’s board of directors to discuss a potential engagement in connection with an unspecified $3 billion transaction. At the October 23, 2012, pitch meeting, which HIXON attended by teleconference from London, England, HIXON and the rest of the Evercore team learned that the transaction being considered was an acquisition of Titanium by Precision Castparts Corp. (“PCP”), a manufacturer of complex metal components and products. HIXON also learned the approximate offer price, and that the transaction was likely to close before year’s end.
Within approximately one hour of the meeting with the Special Committee, HIXON began buying 20,000 Titanium shares for Individual A’s account from a mobile device traced back to London, England. Eight days later, 20,000 more shares of Titanium were purchased for Individual A’s account. Most of the logins to the account corresponding with these purchases traced back to Evercore’s Manhattan office. That same day, 15,000 shares were purchased for Individual B’s account. After market close on November 9, 2012, Titanium announced PCP’s tender offer for its shares. The next trading day, November 12, 2012, all 40,000 of Individual A’s shares of Titanium were sold for a profit of approximately $180,000. Later that month, Individual B’s Titanium shares were sold for a profit of approximately $72,350.
On January 14, 2013, HIXON attended an Evercore partnership meeting at which he learned that Evercore would be announcing record financial results for the fourth quarter of 2012. After the partnership meeting that day, HIXON spoke to Individual B by phone. During the two days preceding the bank’s January 30, 2013, announcement, HIXON, logging into Individual A’s account from Evercore’s Manhattan offices and from his home in Manhattan, bought 27,000 shares of Evercore for the account. Meanwhile, the day before the announcement, 10,000 shares of Evercore were purchased for Individual B’s account. After Evercore’s earnings release, Individual A and Individual B sold all of the Evercore shares the next day, and reaped a combined profit of approximately $94,700.
In February 2013, Evercore asked HIXON to respond to a request from the Financial Industry Regulatory Authority (“FINRA”) and to identify any known names from a list of people and entities who had traded in Titanium stock prior to PCP’s tender offer. Although Individual A and B were both on the FINRA list, HIXON responded by email: “No known relationships.”
When Evercore confronted HIXON about his failure to identify Individual A – who, as noted above, is the mother of his young child – HIXON claimed not to know Individual A by her legal name, which was what appeared on the FINRA list, and to know her only by a different name she uses. Documents produced by Evercore, including text messages and emails between HIXON and Individual A, make clear that HIXON had, in fact, long been aware of Individual A’s legal name. And bank records show that he wrote numerous large checks to Individual A, in her legal name, from 2009 to 2010. On January 28, 2014, HIXON met with two FBI agents and told them, among other things, that he had never traded in or even accessed Individual A’s brokerage account.
When Evercore confronted HIXON about his failure to identify Individual B, his close relative, HIXON responded that the associated location given for Individual B on the FINRA list—Duluth, Georgia—was inaccurate, because Individual B lives in Johns Creek, Georgia. Johns Creek shares a zip code with portions of Duluth, and was only incorporated as its own city in December 2006. The city reflected on the brokerage account statements for Individual B’s account is Duluth.
HIXON, 55, of New York, New York, has been charged in the Complaint with five counts of securities fraud (Counts One through Three, Five, and Six), two counts of securities fraud in connection with a tender offer (Counts Four and Seven), and one count of making a false statement (Count Eight). The securities fraud and fraud in connection with a tender offer charges each carry a maximum term of 20 years in prison, and the false statement charge carries a maximum term of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI and thanked the Securities and Exchange Commission, which has filed civil charges in a separate action. Mr. Bharara also thanked Evercore for its cooperation in this matter.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Sarah E. McCallum is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Frank Perkins Hixon, Jr., Complaint
Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
U.S. Attorney Christopher A. Crofts announced that on February 20, 2014, thirty year old Ronan Whiteplume, an enrolled Northern Arapaho Tribal member, was sentenced by United States District Court Judge Scott Skavdahl for assault resulting in serious bodily injury, to 51 months imprisonment, three years of supervised release, a $100.00 special assessment, and $21,230.43 in restitution. Mr. Whiteplume had previously pled guilty to this offense, which stemmed from an assault during the summer of 2013. This case was investigated by Bureau of Indian Affairs Law Enforcement with the assistance of the Federal Bureau of Investigation.
Local Doctor Sentenced for Making False Statement to AgentRead the Press Release
St. Louis, MO – DR. ERICK FALCONER was sentenced to five months in prison, followed by five months of home confinement, on charges of making a false statement to federal agents regarding his purchases of misbranded Botox® from a foreign unlicensed drug wholesaler, some of which had counterfeit exterior packaging. Additionally, as part of his plea agreement, Dr. Falconer previously forfeited $20,000 to the Government.
According to court documents, during the summer of 2009, Dr. Falconer received a facsimile transmission from an unlicensed drug wholesaler that offered low prices for assorted prescription drugs, including "Botox (Turkish)" for $354.99 a vial, listing a 1-800 telephone number and an individual’s "g-mail" address for contact purposes. The facsimile was sent to his medical practice, The Youthful Body, Inc., in Florissant, MO. During this same time frame, the FDA-approved version of Botox® was sold through licensed drug wholesales at higher prices in the United States, typically $525 a vial. From August 2009 through February 2013, Dr. Falconer and his corporation made over fifty separate purchases of these counterfeit drugs, which he provided to his patients without informing them of the source of the drugs. During an interview in February 2013 with special agents of the U.S. Food and Drug Administration ("FDA"), Dr. Falconer told the agents he had only made three purchases of the illegal drugs from this unlicensed foreign wholesaler. On April 26, 2013, FDA issued a public safety alert regarding "fraudulent versions of Botox found in the United States" with counterfeit exterior cartons.
Falconer, of St. Louis, Missouri, pled guilty last November to one felony charge of making a false statement. He appeared today for sentencing before United States District Judge Carol E. Jackson.
"Healthcare professionals who buy medicines outside of the supply chain that FDA oversees jeopardize their patients’ safety," said Special Agent in Charge Patrick J. Holland of FDA’s Office of Criminal Investigations, Kansas City Field Office. "FDA will not hesitate to bring to justice all those who put the public’s health at risk by violating federal law."
This case was investigated by the U.S. Food and Drug Administration, with assistance from the Office of Inspector General for the U.S. Department of Health and Human Services.
Local Biotech Firm Fined $250,000 for Concealing Toxic Nature of Product from the FDARead the Press Release
San Diego biomedical device manufacturer Valor Medical, Inc. was fined $250,000 today by U.S. District Judge Dana M. Sabraw for intentionally withholding unfavorable test results from the Food and Drug Administration about products under development for the treatment of aneurysms.
Valor had been seeking FDA approval to proceed with clinical trials of the devices in question, including one intended for use in blood vessels in the brain, known as Neucrylate AN, and one intended for use in blood vessels near the heart, called Neucrylate AVM. But the actual preclinical test results would have cast doubt on the safety of Neucrylate, so the company concealed the results.
No Americans were harmed because the FDA never permitted clinical trials to proceed in the United States. However, one death and two strokes occurred as part of clinical trials of the product in Europe, where the European authorities were also unaware of the undisclosed test reports.
Former Valor CEO and current member of the Board of Directors H. Clark Adams and Valor Regulatory and Clinical Affairs Manager Cathy Bacquet pleaded guilty to misdemeanors, and Valor founder Dr. Charles Kerber and Chief Scientist Peter Friedman entered into Deferred Prosecution Agreements, for their roles in the matter.
Because Neucrylate is considered be a Class III medical device under the Food, Drug and Cosmetic Act (“FDCA”), premarket approval from the FDA is required before it can be sold in the United States. In order to perform clinical trials on humans to obtain the data needed to support an application for premarket approval, Valor needed to obtain an investigational device exemption (“IDE”) from the FDA. The regulations relating to investigational device exemptions require the applicant to submit “reports of all prior clinical, animal and laboratory testing of the device.”
As the device is intended to be permanently implanted in the body, biocompatibility is very important. The FDA evaluates the biocompatibility of medical devices pursuant to international standards, which require a series of at least three tests. Two of the three tests typically performed to satisfy these requirements are the mouse lymphoma assay (MLA) and the chromosomal assay (CAA) tests.
According to sentencing documents filed with the court, Valor sent samples of Neucrylate to a laboratory to perform the CAA and MLA tests in early 2007. Shortly thereafter, the lab reported to Alan Donald, a consultant hired by Valor, that all the chromosomes in the CAA test had been destroyed by initial contact with the Neucrylate, indicating toxicity.
The lab asked if Valor wanted the lab to dilute the samples of Neucrylate and try the test again, which is the standard protocol. Donald requested that no further testing be performed. The final report, dated April 25, 2007, indicated that “no chromosomes were present to be scored.” While the destruction of all chromosomes indicated that the Neucrylate was cytotoxic, the official conclusion to the report stated that no conclusion could be drawn from the testing because the testing had not been completed pursuant to the testing protocol.1
At about the same time, the laboratory sent an email to Friedman, with the preliminary results of the MLA test attached, advising that “all testing has been completed and the test article is considered to be mutagenic.” Friedman forwarded the email, with the attached preliminary results, to Donald, Adams, and Kerber later that same day. Adams replied to all, saying “Let’s huddle and determine how we overcome this obstacle. I have confidence that we can find an answer.”
Neither the CAA test results nor the MLA test results were ever provided to the FDA by Valor, which filed two separate investigational device exemption applications and responded to several additional requests for information from the FDA (virtually all of which specifically requested that the CAA and/or MLA tests be performed).
The FDA rejected all of Valor’s IDEs for Neucrylate.
After a December 2010 inspection of Valor uncovered the CAA test, the FDA sent a warning letter to Adams at Valor. The letter referenced the failure to disclose the CAA testing as a violation of the regulations requiring an applicant to submit all preclinical testing to the FDA.
When responding to the FDA on behalf of Valor, Defendant Bacquet claimed that Valor “inadvertently” left out the CAA and MLA tests in the application for the IDE. Valor blamed this “unintentional violation” on Valor’s reliance on the work of consultant Alan Donald, who had separated from the company nearly a year before that IDE was filed. The letter falsely stated that “Prior to February 10, 2011, the existence of this report [the MLA] was not known to VM management or Quality/Regulatory staff.” This statement was contradicted by a series of emails between Friedman, Kerber, Adams, and Donald from the time period when the MLA results were received by Valor in 2007, as well as by presence of the MLA report on the computers of Friedman and Bacquet.
The American people depend on the FDA to determine that there is sufficient scientific basis to believe that a proffered medical device is safe and effective before permitting clinical trials on human beings. The FDA, in turn, depends on the full and truthful disclosure of all pre-clinical testing by device manufacturers to make an educated determination. When information is withheld from the FDA, as in the instant case, the decision-making process is corrupted.
____________________
1The lab’s internal Quality Event Details Form noted that the samples for the CAA test were “cytotoxic,” and the results were valid, but the sponsor was “choosing to cancel the study rather than perform dilutions” so a “full conclusion as to the genotoxicity of the sample will not be made.”
DEFENDANT Criminal Case No. 14cr0196-DMSValor Medical, Inc. San Diego, California
Date of Incorporation: 2007 SUMMARY OF CHARGESFailure to Provide Required Information, a felony, in violation of Title 21, United States Code, Section 331(q)(1)(B) and 333(a)(2)
INVESTIGATING AGENCY
Maximum Penalty for a corporation: 5 years of probation, a $500,000 fine, $400 special assessmentU.S Food and Drug Administration, Office of Criminal Investigations
Leesburg Man Sentenced for Role in Procurement Fraud Scheme Affecting over $33 Million in Federal ContractsRead the Press Release
ALEXANDRIA, Va. – Anthony R. Bilby, 40, of Leesburg, Va., was sentenced today to 16 months in prison, followed by two years of supervised release, for conspiracy to commit wire fraud and major government fraud. Bilby also was ordered to forfeit $1,065,103.90, representing his personal proceeds from the conspiracy.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Carlton Mann, Chief Operating Officer, Department of Homeland Security (DHS), Office of Inspector General; Brian D. Miller, General Services Administration (GSA) Inspector General; Peggy E. Gustafson, Small Business Administration (SBA) Inspector General; and Richard J. Griffin, Acting Inspector General, Department of Veterans Affairs, Office of Inspector General, made the announcement after sentencing by United States District Judge Anthony J. Trenga.
Bilby pleaded guiltyon December 2, 2013. According to court documents, from April 2007 through November 2012, while Bilby was employed by two service-disabled veteran-owned small businesses, he participated in a conspiracy to obtain government contracts through fraud and misrepresentation. During this time period, Bilby caused employees at a nominal competitor to submit inflated bids on the same procurements for which Bilby submitted bids on behalf of his employers. Bilby also gained improper access to the procurement process through co-conspirators working within the government. These co-conspirators provided Bilby and others with internal government cost estimates, so that Bilby knew how much the government was willing to pay before he drafted his and his competitor’s bids. Bilby also drafted portions of internal procurement documents in a manner that increased his odds of winning contracts without facing actual competition.
One of Bilby’s employers, with Bilby’s knowlege and assent, agreed to pay ten percent of its profits on a contract worth more than $24 million to co-conspirators within the government. These co-conspirators, in turn, provided Bilby and his employer with improper access to documents and a competitive advantage in obtaining the contract. In total, the conduct of Bilby and others resulted in the award of more than $33 million in federal contracts through fraudulent procurement practices.
This case was investigated by the Offices of the Inspector General for DHS, GSA, SBA, and the VA, with assistance from DHS’s Office of the Chief Security Officer, Cyber Forensic Branch. Assistant United States Attorney Kosta S. Stojilkovic is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Leader of Interstate Methamphetamine and Oxycodone Ring SentencedRead the Press Release
PITTSBURGH - The leader of a drug ring that brought kilograms of methamphetamine and 10,000 narcotic pills into the Western District of Pennsylvania for sale has been sentenced in federal court to 10 years’ incarceration.
United States District Judge Davis S. Cercone imposed the sentence on Joshua Shaffer, 36, of Hiawatha, Iowa.
Judge Cercone also imposed a two-year period of incarceration on co-conspirator Joe Cesa, 26, of Kersey, Pa., and accepted a guilty plea from a third conspirator, Keith Alfred Hayes, 48, of Sykesville, Pa.
According to evidence presented to the Court, between February 2010 and September 2011, a conspiracy to distribute oxycodone tablets and methamphetamine existed in Jefferson County in Northwestern Pennsylvania and surrounding counties. Shaffer was the source-of-supply for the conspiracy, sending methamphetamine and oxycodone to Pennsylvania from his Florida home, utilizing couriers traveling by car and mailed packages.
Shaffer generally sold the oxycodone tablets for up to $25 each, and the methamphetamine wholesaled for $5,600 an ounce. The pills would then be sold to drug addicts for $35 or $40 apiece, and the methamphetamine would be packaged for individual use and sold. Oxycodone is a highly-addictive narcotic drug that is frequently abused in Western Pennsylvania.
Cesa was a street seller of oxycodone provided to him by Shaffer or one of the other seven co-defendants. Hayes drove shipments of drugs from Florida to Pennsylvania at Shaffer’s direction. All nine defendants charged in the indictment have now pleaded guilty.
Judge Cercone scheduled sentencing for July 11, 2014 at 10:00 am for Hayes. The law provides for a total sentence of up to 20 years in prison and a fine not to exceed $1,000,000 for Hayes. 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.
Assistant United States Attorney Gregory J. Nescott is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the Pennsylvania State Police conducted the investigation that led to the prosecution of Joshua Shaffer, Joe Cesa, and Keith Hayes. The Jefferson County District Attorney's Office also assisted in a related investigation targeting other oxycodone distributors.
Kidada Savage Sentenced for Deadly FirebombingsRead the Press Release
PHILADELPHIA – Kidada Savage, 30, of Philadelphia, was sentenced today to life in prison for her role in the October 9, 2004, firebombing that killed six members of a federal witness’s family. Savage is the sister of Kaboni Savage who ordered the firebombing and who was sentenced to death for 12 counts of murder in aid of racketeering. Kidada Savage was convicted, on May 13, 2013, of six counts of murder in-aid-of racketeering, all related to the firebombing of Eugene Coleman’s family home. Kaboni and Kidada Savage were also convicted of conspiracy to commit murder in aid of racketeering, retaliating against a witness by murder, and of using fire to commit a felony (the Coleman murders). Coleman was a federal witness at the time. Six people, including four children, were killed in the arson.
Today’s penalty verdict was announced by United States Attorney Zane David Memeger, Acting Assistant Attorney General Mythili Raman for the Justice Department’s Criminal Division, and Special Agent-in-Charge Edward J. Hanko of the FBI’s Philadelphia Division.
Kidada Savage acted as a go-between for her brother, who was in federal custody awaiting a drug trial, and Lamont Lewis, who committed the firebombing. Lewis pleaded guilty and is awaiting sentencing. Robert Merritt and Steven Northington were also convicted in the case. Northington was sentenced to life; Merritt is awaiting sentencing.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, the Philadelphia Police Department, the Philadelphia District Attorney’s Office, and the Maple Shade, New Jersey Police Department. The United States Bureau of Prisons, the United States Marshals Service, and HIDTA (High Intensity Drug Trafficking Area) also assisted in the investigation. The case was prosecuted by Assistant United States Attorneys David E. Troyer and John M. Gallagher and Trial Attorney Steve Mellin, of the Criminal Division’s Capital Case Unit at the U.S. Department of Justice.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Kidada Savage Sentenced for Deadly FirebombingsRead the Press Release
PHILADELPHIA – Kidada Savage, 31, of Philadelphia, was sentenced today to life in prison, and a consecutive ten-year sentence, for her role in the October 9, 2004, firebombing that killed six members of a federal witness’s family. Savage is the sister of Kaboni Savage who ordered the firebombing and who was sentenced to death for 12 counts of murder in aid of racketeering. Kidada Savage was convicted, on May 13, 2013, of six counts of murder in aid of racketeering, all related to the firebombing of Eugene Coleman’s family home. Kidada Savage was also convicted of retaliating against a witness by murder, and of using fire to commit a felony (the Coleman murders). Coleman was a federal witness at the time. Six people, including four children, were killed in the arson.
Today’s sentence was announced by United States Attorney Zane David Memeger, Acting Assistant Attorney General Mythili Raman for the Justice Department’s Criminal Division, and Special Agent-in-Charge Edward J. Hanko of the FBI’s Philadelphia Division.
Kidada Savage acted at the behest of her brother, who was in federal custody awaiting a drug trial, and recruited Lamont Lewis to commit the firebombing. Lewis pleaded guilty and is awaiting sentencing. Robert Merritt and Steven Northington were also convicted in the case. Northington was sentenced to life; Merritt is awaiting sentencing.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, the Philadelphia Police Department, the Philadelphia District Attorney’s Office, and the Maple Shade, New Jersey Police Department. The United States Bureau of Prisons, the United States Marshals Service, and HIDTA (High Intensity Drug Trafficking Area) also assisted in the investigation. The case was prosecuted by Assistant United States Attorneys David E. Troyer and John M. Gallagher and Trial Attorney Steve Mellin, of the Criminal Division’s Capital Case Unit at the U.S. Department of Justice.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525