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Thursday 9 January 2014
Albuquerque Man Sentenced to Five Years in Prison and a Lifetime of Supervised Release for Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – William Winzenburg, Jr., 28, of Albuquerque, N.M., was sentenced this afternoon to five years in federal prison followed by a lifetime of supervised release for his child pornography conviction.
Winzenburg was arrested on Feb. 7, 2013 on a criminal complaint and has been in federal custody since his arrest. Winzenburg subsequently was indicted in March 2013, and charged with two counts of receiving visual depictions of minors engaged in sexually explicit conduct and two counts of possession of a visual depiction of minors engaged in sexually explicit conduct.
Court records reveal that the investigation into Winzenburg was initiated in Nov. 2013 after the Bernalillo County Sheriff’s Office (BCSO) received information from the National Center for Missing and Exploited Children that a specific IP address was being used to receive child pornography. On Feb. 7, 2013, after determining that the IP address was subscribed to Winzenburg, the FBI and BCSO executed a search warrant at Wenzenburg’s residence and seized computers and computer-related media which contained child pornography.
On Oct. 1, 2013, Winzenburg entered a guilty plea to Count 1 of the indictment, charging him with receipt of child pornography. In his plea agreement, Winzenburg admitted that he voluntarily participated in a recorded interview with the FBI and BCSO on Feb. 7, 2013, during which he admitted downloading child pornography images and videos from the Internet.
The case was investigated by the FBI, BCSO and the New Mexico Regional Computer Forensic Laboratory, and was prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga. It was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Albuquerque Man Pleads Guilty to Distributing Child PornographyRead the Press Release
ALBUQUERQUE – John A. Crowe, 54, of Albuquerque, N.M., pleaded guilty this morning to distribution of visual depictions of minors engaged in sexually explicit conduct. Under the terms of his plea agreement, Crowe will be sentenced to a prison term of not less than ten years and not more than 15 years to be followed by a term of supervised release to be determined by the Court. Crowe will be required to register as a sex offender after he completes his prison sentence.
The guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas, and Chief Pete N. Kassetas of the New Mexico State Police (NMSP).
Crowe was arrested in May 28, 2011, on a criminal complaint charging him with transportation and possession of child pornography, and has been in federal custody since that time. In June 2011, Crowe was indicted on child pornography charges. A superseding indictment was filed in July 2012, charging Crowe with advertising child pornography in March 2011, transportation of child pornography in Nov. 2010; distribution of child pornography on two occasions in March 2011, and possession of child pornography from April 2011 to May 2011. The indictment alleged that Crowe committed these offenses in Bernalillo County, N.M.
According to court filings, the investigation leading to Crowe’s arrest began in March 2011, when an officer with the Online Predator Unit of the New Mexico State Police (NMSP) identified an IP address that was being used to share files containing child pornography while conducting an investigation targeting those who share child pornography on peer-to-peer file sharing networks. Subsequent investigation revealed that the IP address was subscribed to Crowe at a residential address in west side of Albuquerque.
On May 26, 2011, HSI and the NMSP executed a search warrant at Crowe’s residence seized a computer and computer-related media. During a recorded interview that day, Crowe admitted using his computer to search for and download child pornography. A subsequent forensic examination of the computer and computer-related media revealed that they contained images and videos of child pornography, including videos of minor females who appeared to be filmed by a hidden camera located in a bathroom and a bedroom of a residence. During a recorded interview on May 28, 2011, Crowe admitted that he recorded the videos using a video-camera when he lived in Alabama and Georgia and that the minor females were daughters of former girlfriends who were not aware that he was filming them as they undressed. Crowe acknowledged bringing the child pornography with him when he moved to New Mexico in Nov. 2010.
Today, Crowe pled guilty to Count 6 of the superseding indictment charging him with distribution of child pornography, and admitted distributing an image of child pornography on March 12, 2011. Crowe remains in custody pending his sentencing hearing, which has yet to be scheduled.This case was investigated by the Albuquerque office of HSI and the NMSP and is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Alabama Man Indicted for First Degree Murder in Fort Stewart SlayingRead the Press Release
SAVANNAH, GA – An indictment was returned today by a federal grand jury sitting in Savannah, Georgia, charging CARL EVAN SWAIN, aka “COWBOY,” 43, a resident of Alabama, with first degree murder in the beating death of Specialist John Joseph Beans Eubank, 29, on November 30, 2013, on Fort Stewart. Federal law provides that a murder occurring within the special maritime and territorial jurisdiction of the United States is a federal crime. Fort Stewart lies within the territorial jurisdiction of the United States.
United States Attorney Edward Tarver stressed that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being investigated by the Federal Bureau of Investigation. Assistant U. S. Attorneys Cameron Heaps Ippolito, Karl I. Knoche, and Tania D. Groover are prosecuting the case on behalf of the United States.Akron Woman Sentenced for Filing False Tax ReturnsRead the Press Release
Kelly Prigmore was sentenced to prison for one day, followed by two years of supervised release, with the first ten months subject to location-monitored home confinement, for her August 2013 conviction for filing false income tax returns, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The sentence was imposed by United States District Judge Benita Y. Pearson, in Youngstown, Ohio. Prigmore was taken into immediate custody shortly before noon, to be released at the end of the following afternoon.
Prigmore, age 43, is a resident of Akron, Ohio, according to court records.
Judge Pearson, who presided over the trial without a jury, also ordered Prigmore to provide 192 hours of community service on a schedule of eight hours per week spread out over six of the ten months of home confinement. The Court also directed Prigmore to undergo mental health treatment and prohibited her from engaging in any gambling activities or from entering any gambling establishments during her supervision. The Court also gave the supervising probation officer discretion to require Prigmore to enter a gambling treatment program. The Court further ordered Prigmore to cooperate with the IRS in the payment of her unpaid taxes.
Prigmore was convicted after a two-day trial last August of filing false income tax returns for 2006 and 2007, on which she failed to report over $200,000 of income she earned as a self-employed provider of home health care. Evidence at trial revealed that Prigmore went to H&R Block to prepare and electronically file her joint income returns for those years. She caused the returns to list her occupation as a homemaker and to report that she and her husband were a low income family entitled to an Earned Income Credit and resulting tax refund each year.
For 2006, she reported total income of $8,600 and omitted additional income of approximately $96,686. For 2007, she reported total income of $8,990 and omitted additional income of approximately $112,795, according to evidence at trial.
The case was prosecuted by Assistant U.S. Attorney John M. Siegel and former Special Assistant U.S. Attorney Perry D. Mastrocola, following an investigation by the Internal Revenue Service, Criminal Investigation, Akron, Ohio.
28.3 Million!Read the Press Release
MONTANA UNITED STATES ATTORNEY'S OFFICE COLLECTS $28.3 MILLION IN CIVIL & CRIMINAL ACTIONS FOR U.S. TAXPAYERS IN FISCAL YEAR 2013
U.S. Attorney Michael W. Cotter announced today that the Montana United States Attorney's Office collected $28.3 million in Fiscal Year (FY) 2013 related to criminal and civil actions in cases handled by the Montana United States Attorney's Office. In some cases, the U.S. Attorney's Office worked in conjunction with litigating components of the U.S. Department of Justice. (During this time of budgetary uncertainty, these collections are more important than ever,( said U.S. Attorney Michael W. Cotter. (The U.S. Attorney(s Office is dedicated to protecting the public and recovering funds for the federal treasury and for victims of federal crime. We will continue to hold accountable civil and criminal wrongdoers who seek to profit from their illegal activities.(
The U.S. Attorneys( Offices, along with the department(s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and to federal crime victims. Generally, these debts are judgments, either civil judgments or criminal judgments entered by the federal court. Criminal judgments consist of fines and restitution. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the department(s Crime Victims( Fund, which distributes the funds to state victim compensation and victim assistance programs.
Occasionally, assets from criminals are forfeited by court action. Forfeiture proceeds are often distributed back to local law enforcement to assist them in the protection of Montana communities or to the victims of crime. Forfeited assets include currency or bank accounts, real property and cars purchased with illegal proceeds or used to facilitate crimes, guns held by convicted felons, and computers used for child pornography. Seized property is sold and the money deposited into the government accounts used to restore money lost by crime victims.
Those who regularly follow the news are aware of the function of the United States Attorney's Office (USAO) regarding federal criminal prosecution. Equally important, but perhaps not as well known, is the mission, function and success of the Montana USAO in recovering money for the benefit of victims of crime and the U.S. Treasury. This critical mission is accomplished in large part by the Financial Litigation Unit (FLU). The unit is led by a career federal litigator, Assistant U.S. Attorney Victoria Francis of Billings, who is supported by two paralegal specialists who handle over 1400 active cases. The FLU collects criminal restitution, fines, and penalties ordered to be paid to federal agencies when federal programs are defrauded.
In addition the FLU Unit helps federal prosecutors identify and forfeit assets that represent the proceeds of or that were used to facilitate federal crimes.
Across the country, the United States Attorneys' offices collected $8.1 billion from criminal and civil actions during 2013, which is far more than the appropriated budget of the combined 93 USAOs offices for that year. Collections in Montana totaled more than $28.3 million for 2013, more than five times the annual operating budget for Montana's U.S. Attorney's Offices. The U.S. Attorney's Office in Montana is credited with collecting $2 million in relation to criminal actions brought by the office, $20.5 million in relation to civil actions, and $5.8 million in criminal and civil forfeiture cases.
U.S. Attorney Cotter noted that "budget sequestration bites deeply into the operations of the Montana USAO. The Montana USAO currently has an employee vacancy of rate of roughly 25%. Cutting the budgets of United States Attorneys' offices through sequester effectively reduces government revenue. There are simply fewer lawyers and support personnel to accomplish the overall mission of the Department of Justice, including the ability to collect fines, money owed to the government and restitution for crime victims. Therefore, shortages of personnel and restrictions on litigation-related expenditures are expected to affect the USAO ability to collect funds due the United States."
The efforts of this office to serve the people of Montana will continue. Reduced resources will make it more difficult to maintain the same level of service for law enforcement protection, for public safety or the protection of the public purse. But this office is committed to maintaining the highest ideals of public trust and public service despite those challenges." --- U.S. Attorney Mike Cotter.
-Defendant Sold Stolen Equipment to Pawn Shops-Read the Press Release
Former Employee Pleads Guilty to Stealing
More Than $26,000 from Naval Research LaboratoryWASHINGTON – Joyce Dawn Ferrell, 42, a former secretary at the Naval Research Laboratory, pled guilty today to stealing more than $26,000 in equipment from her employer and then selling the items to pawn shops, U.S. Attorney Ronald C. Machen Jr. announced.
Ferrell, of Indian Head, Md., pled guilty in the U.S. District Court for the District of Columbia to a charge of theft of government property. The Honorable Rudolph Contreras scheduled sentencing for April 7, 2014. The charge carries a statutory maximum of 10 years in prison and financial penalties. Under federal sentencing guidelines, the parties have agreed that the likely range is a sentence of up to six months of incarceration and a fine of up to $10,000. As part of the plea agreement, Ferrell has agreed to pay $26,029 in restitution to the Naval Research Laboratory. She also has agreed to a forfeiture money judgment, also of $26,029.
According to the government’s evidence, Ferrell was a secretary in the Optical Sciences Division of the Naval Research Laboratory in the District of Columbia. In July 2012, she took responsibility for making authorized purchases with her government-wide commercial purchase card. Starting that month, and continuing until about May 2013, she made a number of unauthorized purchases with the card at the Naval Research Laboratory’s commissary. Among other things, she bought computer equipment, drills, and thermal imagers. She then sold these items to pawn shops in Virginia and Maryland. In an effort to cover up her activities, Ferrell submitted falsified order forms to her supervisors at the Naval Research Laboratory.
In announcing the plea, U.S. Attorney Machen commended the work of the Naval Criminal Investigative Service, which investigated the case. He also expressed appreciation for the assistance provided by the Metropolitan Police Department (MPD), and he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Intelligence Specialist Sharon Johnson and Paralegal Specialists Donna Galindo and Shanna Hays. Finally, he thanked Assistant U.S. Attorney Catherine K. Connelly, who assisted with forfeiture issues, and Assistant U.S. Attorney Phil Selden, who is prosecuting the case.
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Wednesday 8 January 2014
Wayne Co. Felon Sentenced to 2 Years in Federal Prison for Illegal Possession of A FirearmRead the Press Release
CHARLESTON, W.Va. – A Wayne County felon who illegally possessed a firearm was sentenced today to two years in federal prison, U.S. Attorney Booth Goodwin announced. Keith Brian Clark, 47, of East Lynn, W.Va., previously pleaded guilty in October 2013 to being a felon in possession of a firearm. The sentence was handed down by United States District Court Judge John T. Copenhaver, Jr. in Charleston.
On June 18, 2012, Clark illegally possessed a 9-millimeter pistol near Harts, Lincoln County, W.Va. Clark was previously convicted in August 2004 of second degree robbery in the Circuit Court of Wayne County. The defendant did not have his rights to possess a firearm restored.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Haley Bunn handled the prosecution.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.Wanblee Woman Sentenced for Drug ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota, woman convicted of conspiracy to distribute more than 1 kilogram of marijuana was sentenced on January 2, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
This case was investigated as part of Operation Eagle Eye, a controlled substances investigation conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Anita Lucine Brown, age 59, was sentenced to 1 year probation and a $100 special assessment to the Federal Crime Victims Fund.
Brown was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on July 24, 2012. She pled guilty on October 4, 2013.
Between May 2010 and July 2012, the defendant’s sons sold marijuana from her home. Brown was given marijuana for allowing them to use her home, wherein more than 1 kilogram of marijuana was distributed.
United States Attorney's Office Says Goodbye to Forensic Financial AuditorRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced the retirement of Kathy T. Penfield, financial auditor, who served in the Western District of Louisiana for 22 years. Penfield was honored on Tuesday, January 7, 2014, at a retirement ceremony held at the U.S. Courthouse in Shreveport. Her last day with the office was December 31, 2013.
“We are losing a talented expert forensic auditor and public servant,” Finley stated. “Throughout her career, Ms. Penfield played an integral role in prosecuting cases with our office. Her years of service and dedication to the Department of Justice are a true testament of her commitment to justice and the citizens of this district. She will be greatly missed, and we wish her the very best as she starts the next chapter of her life. I am grateful for her tireless advocacy on behalf of the Western District.”
Penfield joined the U.S. Attorney’s Office for the Western District of Louisiana on November 12, 1991 as a forensic financial auditor assigned to the Criminal Division. During her 22 years with the office, Penfield provided expert forensic auditing and accounting services in investigations by determining whether there were violations of federal statutes such as bank fraud, money laundering, securities fraud, commodities fraud, Racketeer Influenced Corrupt Organization (RICO), mail fraud, and more. She focused her work on tracking complex financial transactions. Her work was used by federal prosecutors to convict many high profile defendants, including corrupt public officials. Penfield has worked with numerous federal agencies, including the Federal Bureau of Investigation, Internal Revenue Service, U.S. Drug Enforcement Administration, U.S. Department of Homeland Security, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Among her numerous awards and citations, Penfield received a letter of commendation from the Director of the FBI for her work on two very complex cases, received multiple recognitions from regional FBI offices for her forensic fraud examinations, and was a recipient of the 2007 and 2008 awards from the Organized Crime Drug Enforcement Task Forces, Southeast Region, for her service in the Western District of Louisiana.
Penfield graduated Summa Cum Laude in 1981 from Centenary College in Shreveport receiving a bachelor’s degree in accounting. She is a certified public accountant, a certified fraud examiner, past president of the local chapter of the Association of Certified Fraud Examiners, and is certified by the American Institute of CPAs in Financial Forensics. She is a 25-plus year member of the Louisiana Society of CPAs and the American Institute of Certified Public Accountants. Kathy Penfield is married to Jim Penfield, her husband of 42 years.
L to R: Kathy Penfield and U.S. Attorney Stephanie Finley
U.S. Attorney’s Office to Co-Sponsor Diversity Forum in Commemoration of Dr. Martin Luther King Jr.’s Birthday-Jan. 15 Program Is Tailored for Civic, Non-Profit and Community Leaders-Read the Press Release
WASHINGTON – The U.S. Attorney’s Office for the District of Columbia is joining the District of Columbia government and other partners to sponsor an upcoming forum for community and government leaders on diversity and criminal justice issues.
The free event, in commemoration of Dr. Martin Luther King Jr.’s birthday, will be from 8:30 a.m. until 4:30 p.m. on Jan. 15, 2014. The program will be held at the old District of Columbia Council chambers, 441 4th St. NW. The event is especially tailored for faith-based, civic, non-profit and community leaders and others who serve people in the District of Columbia.
The program, called “Protecting Our Diversity - a Criminal Justice Forum,” will focus on addressing criminal justice issues, including hate crimes that affect the various diverse communities and affinity groups in the District of Columbia. The program will be a unique opportunity for the community to come together to discuss the issues affecting civil rights and the ways that people and organizations can work together to understand and protect them.
U.S. Attorney Ronald C. Machen Jr. will deliver the keynote address. Panel discussions and speakers will cover topics such as factors in the designation of hate crimes; the impact of hate crimes and domestic violence on various communities and affinity groups;keeping houses of worship safe; the process involving visas for non-immigrant witnesses, and transgender issues.
Also, notable remarks and specialized knowledge will be shared by leaders and representatives in the fields that protect diversity, such as the Community Relations Service of the Department of Justice; the U.S. Department of Homeland Security, the FBI, the Metropolitan Police Department, and other local and national community organizations. Information tables from related organizations and agencies will also provide resources and materials.
The event is being organized by the U.S. Attorney’s Office for the District of Columbia, the Community Relations Service of the Department of Justice; the Washington, D.C. Regional Office of the Anti-Defamation League; the D.C. Hate-Bias Task Force; the District of Columbia Mayor’s Office on Gay, Lesbian, Bisexual and Transgender Affairs; D.C. Mayor’s Office on Asian and Pacific Islander Affairs; the Metropolitan Police Department; the FBI, Casa Ruby, and the American University Law School.
For more information, to RSVP, and/or request interpretative services or special accommodationsto attend“Protecting Our Diversity - a Criminal Justice Forum” please contact [email protected] or Melanie Howard at the U.S. Attorney’s Office at 202-252-6930. The program’s location is easily accessible via Metro’s Red Line stop at Judiciary Square.
14-003U.S. Attorney’s Office to Co-Sponsor Diversity Forum in Commemoration of Dr. Martin Luther King Jr.’s Birthday-Jan. 15 Program Is Tailored for Civic, Non-Profit and Community Leaders-Read the Press Release
WASHINGTON – The U.S. Attorney’s Office for the District of Columbia is joining the District of Columbia government and other partners to sponsor an upcoming forum for community and government leaders on diversity and criminal justice issues.
The free event, in commemoration of Dr. Martin Luther King Jr.’s birthday, will be from 8:30 a.m. until 4:30 p.m. on Jan. 15, 2014. The program will be held at the old District of Columbia Council chambers, 441 4th St. NW. The event is especially tailored for faith-based, civic, non-profit and community leaders and others who serve people in the District of Columbia.
The program, called “Protecting Our Diversity - a Criminal Justice Forum,” will focus on addressing criminal justice issues, including hate crimes that affect the various diverse communities and affinity groups in the District of Columbia. The program will be a unique opportunity for the community to come together to discuss the issues affecting civil rights and the ways that people and organizations can work together to understand and protect them.
U.S. Attorney Ronald C. Machen Jr. will deliver the keynote address. Panel discussions and speakers will cover topics such as factors in the designation of hate crimes; the impact of hate crimes and domestic violence on various communities and affinity groups;keeping houses of worship safe; the process involving visas for non-immigrant witnesses, and transgender issues.
Also, notable remarks and specialized knowledge will be shared by leaders and representatives in the fields that protect diversity, such as the Community Relations Service of the Department of Justice; the U.S. Department of Homeland Security, the FBI, the Metropolitan Police Department, and other local and national community organizations. Information tables from related organizations and agencies will also provide resources and materials.
The event is being organized by the U.S. Attorney’s Office for the District of Columbia, the Community Relations Service of the Department of Justice; the Washington, D.C. Regional Office of the Anti-Defamation League; the D.C. Hate-Bias Task Force; the District of Columbia Mayor’s Office on Gay, Lesbian, Bisexual and Transgender Affairs; D.C. Mayor’s Office on Asian and Pacific Islander Affairs; the Metropolitan Police Department; the FBI, Casa Ruby, and the American University Law School.
For more information, to RSVP, and/or request interpretative services or special accommodationsto attend“Protecting Our Diversity - a Criminal Justice Forum” please contact [email protected] or Melanie Howard at the U.S. Attorney’s Office at 202-252-6930. The program’s location is easily accessible via Metro’s Red Line stop at Judiciary Square.
14-003Two Sentenced for Fayetteville Taco Bell RobberiesRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that yesterday in federal court, United States District Judge Terrence W. Boyle sentenced William Franklin Byford, III, 33, of Bunnlevel, North Carolina to 171 months imprisonment followed by 3 years of supervised release and CRISTOPHER DEAN GILBERT , 24, of Fayetteville, North Carolina to 181 months imprisonment followed by 3 years of supervised release.
BYFORD and GILBERT pled guilty on October 3, 2013 to one count of Conspiracy to Interfere with Commerce by robbing four Taco Bell Restaurants in Fayetteville, in violation of Title 18, United States Code, Section 1951(b), and one count of Using, Carrying, and Brandishing a Firearm During and in Relation to a Crime of Violence and Aiding and Abetting, in violation of Title 18, United States Code, Sections 924(c)(1)(A), 924(c)(1)(A)(ii), and 2.
According to the investigation, BYFORD and GILBERT committed armed robberies of four Taco Bells in Fayetteville from October 18, 2012 through December 6, 2012. GILBERT had worked as a manager of a Taco Bell and was familiar with the day-to-day operations of the establishments. GILBERT committed the robberies while BYFORD, who was paralyzed and confined to a wheel chair, served as the get-away driver in a car that had been modified to be operated by hand. They equally divided the proceeds from the robberies.Investigation of this case was conducted by the Fayetteville Police Department, the Bureau of Alcohol, Tobacco, Firearms, & Explosives, and the Federal Bureau of Investigation. Assistant United States Attorney Dennis Duffy represented the government.
Two More Defendants Sentenced for Conspiring to Distribute Methamphetamine in the Treasure ValleyRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today that Darin James Bangham, 40, of Star, Idaho, and co-defendant, Ashley Marie Armstrong, 27, of Kuna, Idaho, were sentenced this week for conspiracy to distribute methamphetamine.
Chief U.S. District Judge B. Lynn Winmill sentenced Bangham this morning to 87 months in prison followed by five years of supervised release for conspiracy to distribute 500 grams or more of methamphetamine. He pleaded guilty to the charge on October 21, 2013. Judge Winmill also ordered Bangham to forfeit $100,000 in proceeds of the offense and $18,400 in seized currency.
Armstrong was sentenced on Monday to 51 months in prison followed by three years of supervised release for conspiracy to distribute methamphetamine. She pleaded guilty to the charge on October 16. Armstrong was also ordered to forfeit her interest in the seized $18,400, as well as $10,000 in proceeds of the offense.
According to court proceedings, Bangham and Armstrong conspired with others to distribute methamphetamine in the Treasure Valley. The government argued at sentencing that this conspiracy was responsible for the distribution of approximately 130 pounds of high purity methamphetamine between October 2012 and April 2013.
Two co-defendants from Eagle, Idaho, were sentenced in December 2013 to serve lengthy prison sentences: Samantha Jo Tackitt was sentenced to 151 months in prison for conspiracy to distribute 500 grams or more of methamphetamine; Michael Scott Longhi was sentenced to 188 months in prison. Tackitt and Longhi were each ordered to forfeit $18,400 of seized currency and $100,000 in cash proceeds to the United States.
The remaining defendant, Ausencio Gonzalez Tovar, 48, of Eagle, will be sentenced on February 3, 2014, for possession with intent to distribute 500 grams or more of methamphetamine.
The case was investigated by the Ada County Sheriff’s Office, Meridian Police Department, and Drug Enforcement Administration.
Two Men Charged Federally for Marijuana Deal that turned DeadlyRead the Press Release
Two south King County men on opposite sides of a drug deal gone bad have been indicted by a federal grand jury in Seattle, announced U.S. Attorney Jenny A. Durkan. DAVID ROSS, 35, of Renton is charged with three federal felonies: conspiracy to distribute marijuana, possession of a firearm in furtherance of a drug trafficking crime and unlawful possession of a firearm. LENNY BRIKN, JR, 19, of Federal Way is charged with five federal felonies in connection with the October 17, 2013 incident: conspiracy to commit robbery, attempted robbery, attempted possession of marijuana with intent to distribute, possession of a firearm in furtherance of a crime of violence and a drug trafficking crime and possession of a stolen firearm.
“This case is a clear reminder that drugs and guns are a deadly mix and an appropriate target for federal prosecution,” said U.S. Attorney Jenny A. Durkan. “The violent conduct in this case could have resulted in injuries or death to innocent bystanders. Working closely with the King County Prosecutors Office we determined federal laws are the best tool to hold these men accountable.”
According to the records filed in King County Superior Court as well as the indictment, ROSS and an associate arrived at a Federal Way apartment complex to sell marijuana to two men – BRIKN and his brother, Deshawn Boykin. ROSS was armed with a gun, despite having two previous felony drug convictions that prohibit him from possessing a firearm. BRIKN and Boykin drew “Mac 10” style semi-automatic pistols, ordered ROSS and his associate to lie on the ground, and attempted to rob them of the marijuana they brought to the drug deal. BRIKN and Boykin ultimately ran away, and ROSS drew his gun and fired multiple times at the fleeing men. Boykin was hit twice and died of his wounds at St. Francis Medical Center.
ROSS was originally charged in King County Superior Court. BRIKN was charged in King County Superior Court with an unrelated robbery in December 2013. Both men will be brought to U.S. District Court in Seattle for arraignment later this month.
ROSS is charged with discharging a firearm in furtherance of a drug trafficking crime, which carries a mandatory minimum ten year sentence in addition to any other sentence imposed in the case. BRIKN is charged with brandishing a firearm in furtherance of a crime of violence and a drug trafficking crime, which carries a mandatory minimum seven year sentence in addition to any other sentence imposed in the case.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Federal Way Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Twenty-two People Charged in Ongoing “Operation Corridor” Investigation of North County Gang ActivityRead the Press Release
SAN DIEGO – Twenty-two people, including suspected drug traffickers and associates of the Mexican Mafia prison gang, are charged in numerous indictments and complaints unsealed today with crimes ranging from racketeering conspiracy to heroin and methamphetamine dealing.
The indictments are the result of “Operation Corridor,” a continuing investigation involving a team of federal, state, and local agencies focusing on the activities of the Mexican Mafia operating in the Southern District of California. So far the investigation has resulted in the charging of 68 people since April 2012.
In all, five indictments and three complaints were unsealed today. The main indictment charges 11 people with participating in a racketeering conspiracy that involved the commission of both state and federal crimes, including conspiracy to commit murder, assault with a deadly weapon, extortion, money laundering and drug trafficking violations.
The indictments were handed up by a federal grand jury in San Diego on December 19, 2013. As of today, 18 of the twenty-two defendants are either in federal or state custody. Six were arrested today and yesterday; the rest were already in custody.
As set forth in the indictments, most of the defendants are associates of the Mexican Mafia operating primarily in Oceanside and Vista, California, and multiple San Diego Sheriff’s Office Detention Facilities and California State Prisons, including Donovan, Centinela and Ironwood.
Using electronic surveillance, intercepted phone lines and other sophisticated tools, this continuing investigation targeted a broad criminal conspiracy to extort money and control the illegal narcotics trade in both north San Diego County and various California State Prisons. The investigation is ongoing.
"We will continue to target gangs operating on the streets of our communities in conjunction with associates operating in jails and prisons,” said U.S. Attorney Laura Duffy. “Their criminal behavior will not be tolerated. Along with our state and local partners, we will continue to tirelessly pursue them at every level. I commend the efforts of all involved and appreciate their hard work and commitment to bringing these criminals to justice."
United States Attorney Duffy praised the North County Regional Gang Task Force (NCRGTF) for the coordinated team effort in the culmination of this investigation. Agents and officers from the Federal Bureau of Investigation, San Diego County Sheriff's Office, Oceanside Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the California Department of Corrections and Rehabilitation, Bureau of Prisons, Homeland Security Investigations. U.S. Marshals Service, California Highway Patrol, and the Escondido and Carlsbad Police Departments collaborated on this investigation.
The investigation was conducted in conjunction with the Organized Crime Drug Enforcement Task Force. The OCDETF program was created to consolidate and utilize all law enforcement resources in this country's battle against organized crime and major drug trafficking organizations.
“The collaboration between federal and local law enforcement in San Diego is unparalleled, and Operation Corridor is a fine example of utilizing our strategic law enforcement partnerships to combat an increasingly dangerous fusion of violent gangs and organized crime,” said Derek Benner, special agent in charge for ICE’s Homeland Security Investigations in San Diego. “With dozens of violent street gang members and associates off the streets, we have delivered on our commitment to public safety so that the law abiding people living and working in our neighborhoods are safe.”
DEFENDANTS
Criminal Case No. 13CR4514-BEN Leonard Delgado, aka Spanky
Steven Amador, aka Insane
Isaac Ballesteros, aka Lazy
Julio Rodriguez, aka Sniper
Roberto Sotelo, aka PoPo, Top Hat
Ruben Savala, aka Boxer
Robert Collazao, aka Weasel
George Garibay, aka Scooby
Rachel Morales, aka Rachel Ruvalcaba
Margaret Cano
Angelica Ibanez SUMMARY OF CHARGESConspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity, in violation of Title 18, United States Code, Section 1962(d) ; Conspiracy to Distribute Methamphetamine and Heroin, in violation of Title 21, United States Code, Sections 841 and 846. Maximum Penalties: Life in prison.
In addition to the RICO portion of “Operation Corridor,” 11 defendants were charged in six related cases for various drug trafficking and firearm offenses. Those cases and defendants include:
DEFENDANTS
Criminal Case No. 13CR4512-BEN Luis Cuevas, aka Youngster
Helen Robles SUMMARY OF CHARGESConspiracy to Possess with Intent to Distribute Heroin. Maximum Penalties: 20 years in Custody and $1
DEFENDANTS
million fine.
Criminal Case No. 13CR4513-BEN Priscilla Lopez, aka Gata
Eva Madueno, aka Shady SUMMARY OF CHARGESConspiracy to Possess with Intent to Distribute Methamphetamine and Heroin
DEFENDANTS
Maximum Penalties: 40 years in Custody and $5 million Fine
Criminal Case No. 13CR4515-BEN Juan Ybarra, aka Listo
Sherri Pelayo
Michael Vaughn SUMMARY OF CHARGESConspiracy to Distribute Methamphetamine; Conspiracy to Launder Money. Maximum Penalties: Life in
DEFENDANT
Custody and $10 million fine.
Criminal Case No. 13CR4511-JLS Hector Aguilar, aka Flaco SUMMARY OF CHARGES Felon in Possession of a Firearm
Maximum Penalties: 10 years in Custody and $250,000 fine DEFENDANT
Criminal Case No. 14MJ0038 Kenneth Coleman, aka Lucky Age: 35 SUMMARY OF CHARGESConspiracy to Possess with Intent to Distribute Methamphetamine and Heroin
DEFENDANT
Maximum Penalties: 20 years in Custody and $1 million fine.
Criminal Case No. 14MJ0039 Ricardo Chavez, aka Droopy SUMMARY OF CHARGES Possession of Methamphetamine with Intent to Distribute
Maximum Penalties: 20 years in Custody and $1 million fine. DEFENDANT
Criminal Case No. 14MJ0038 Chayo Moreno SUMMARY OF CHARGESConspiracy to Distribute Methamphetamine; Maximum Penalties: 20 years in Custody and $1 million Fine.
INVESTIGATING AGENCIESNorth County Regional Gang Task Force, which includes agents and investigators from:
Federal Bureau of Investigation
San Diego County Sheriff’s Office
Oceanside Police Department
Bureau of Alcohol, Tobacco, Firearms and Explosives
California Department of Corrections and Rehabilitation
Bureau of Prisons, Homeland Security Investigations
U.S. Marshals Service
California Highway Patrol
Escondido Police Department
Carlsbad Police Department*An indictment or complaint itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Three Men Sentenced for Fraud Scheme Involving Misappropriated Credit / Debit Card InformationRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Yanoysy Hernandez-Hernandez, age 35, of Spokane, Washington, Ernesto Morales, age 42, of Lawrenceville, Georgia, and Osmany Ruiz Lemas, age 43, of Spokane, Washington were sentenced for their involvement in a credit card / debit card fraud scheme. In the fall of 2013, Hernandez-Hernandez and Morales pleaded guilty to multiple charges of Aggravated Identity Theft and Lemas pleaded guilty to Conspiracy to Commit Access Device Fraud.
United States District Court Judge Lonny R. Suko sentenced Hernandez-Hernandez to a 30 month term of imprisonment and Morales to a 36 month term of imprisonment, with both terms to be followed by a 1 year term of court supervision after release from Federal prison; Aggravated Identify Theft charges carry a mandatory minimum penalty of two years imprisonment. In addition, Judge Suko ordered Hernandez-Hernandez to pay $807.61 in restitution, along with a $5,000.00 fine and ordered Morales to pay $16,681.01 in restitution. Judge Suko sentenced Lemas to a 5 year term of probation.
According to information disclosed during the court proceedings, beginning in December 2012 and continuing to February 2013, the United States Secret Service, the United States Postal Inspection Service, and the United States Department of Transportation Office of Inspector General conducted an investigation into the use of fraudulently obtained credit card and debit card numbers to purchase diesel fuel and other items of value in the Eastern District of Washington. As a result of the investigation, agents executed multiple search warrants on packages sent from Georgia and Florida to the Eastern District of Washington that were found to contain numerous gift cards with fraudulently obtained credit card and debit card account numbers loaded onto the gift cards. Agents also executed multiple search warrants at residences and other locations in the Eastern District of Washington. The fraudulently obtained credit and debit card account numbers found on the gift cards sent from Georgia and Florida were obtained from numerous people across the country. The gift cards could then be used as a credit card or debit card and would cause fraudulent charges to the respective credit and debit card account numbers on the gift cards. None of the account holders of the credit and debit card accounts found during the course of investigation authorized any of the Defendants to use their accounts.
It was further disclosed during the court proceedings that some of the fraudulently obtained account numbers were sent to Hernandez-Hernandez by Morales from Georgia. Once Hernandez-Hernandez received the gift cards in Spokane, he would use the gift cards to purchase diesel fuel and other things of value. Hernandez-Hernandez also provided Lemas with several gift cards that Lemas used to purchase diesel fuel. The diesel fuel purchased with the gift cards was loaded into specially modified vehicles and then resold to other people for a profit. The transportation of the fraudulently obtained diesel fuel was done using vehicles that were not approved for the transportation of such large quantities of fuel. During the course of investigation, agents also seized several vehicles that were used to transport the fraudulently obtained diesel fuel. The vehicles will be forfeited to the United States.
Michael C. Ormsby said, "The Secret Service, the Postal Inspection Service, and the Department of Transportation Office of Inspector General are committed to investigate thoroughly identity theft crimes. Prosecuting this type of fraud is a priority for United States Attorney's Office in the Eastern District of Washington. The successful prosecution of these cases is yet another example of the seamless and symbiotic working partnership of the Federal agencies working in this District."
This investigation was conducted by the Secret Service, the Postal Inspection Service and the Department of Transportation Office of Inspector General. These cases were prosecuted by James A. Goeke, an Assistant United States Attorney for the Eastern District of Washington.
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13-CR-0026-LRS-5Three Key West Men Sentenced for Possession of Stolen FirearmsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, announce that Jermaine Lamar Roberts, 34, Amdado Cardenas, 47, and William Jon Ray, 45, all of Key West, Florida, were sentenced today. Roberts was sentenced to 110 months in prison, Cardenas was sentenced to 170 months in prison, and Ray was sentenced to 180 months in prison, all to be followed by five years of supervised release.
Roberts, Cardenas, and co-defendant Patrick Lawrence Stickney, 43, of Key West, Florida, previously pled guilty to one count of possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g), and one count of possession of a stolen firearm, in violation of Title 18, United States Code, Section 922(j). Ray previously pled guilty to one count of possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g). Stickney is scheduled to be sentenced on February 19, 2014 at 1:30 p.m. before U.S. District Judge James Lawrence King in Key West, Florida.
According to court documents, the defendants, all previously convicted felons, were involved in the possession and attempted sale of numerous firearms stolen from a recreational vehicle in Stock Island, Florida, including military-style assault rifles.
Mr. Ferrer commended the investigative efforts of ATF, and thanked the Monroe County Sheriff’s Office for its work in this case. The case is being prosecuted by Assistant U.S. Attorney Frank Maderal.
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.
Tennessee Men Plead Guilty to Illegally Trafficking Narwhal TuskRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today two plea agreements in a multi-national conspiracy to illegally import and sell narwhal tusks.
Jay G. Conrad, of Lakeland, Tennessee, pleaded guilty in the District of Maine to conspiring to illegally import and traffic narwhal tusks, conspiring to launder money, and illegally trafficking narwhal tusks, announced Robert G. Dreher, Acting Assistant Attorney General for the Environment and Natural Resources Division. A plea agreement was also unsealed in which Eddie T. Dunn, of Eads, Tennessee, pleaded guilty in the District of Alaska to conspiring to illegally traffic, and trafficking, narwhal tusks.
According to the plea agreements, beginning in approximately 2003, Dunn and Conrad partnered to buy more than 100 narwhal tusks from a Canadian resident. Each knew the tusks were illegally imported from Canada into Maine. After receiving the tusks in Tennessee, Dunn and Conrad marketed and sold the tusks using a combination of internet sales via the “Ebay” auction website and direct sales to known buyers and collectors of ivory. Buyers were located throughout the United States, including in Alaska and Washington. Throughout the conspiracy, Dunn and Conrad made payments to the Canadian supplier for the narwhal tusks by sending the payment to a mailing address in Bangor, Maine, or directly to the supplier in Canada. The payments allowed the Canadian supplier to purchase and re-supply Dunn and Conrad with more narwhal tusks that they could then resell. Dunn sold approximately $1.1 million worth of narwhal tusks and Conrad sold between $400,000 and $1 million worth of narwhal tusks as members of the conspiracy.“This investigation uncovered and dismantled a wildlife trafficking network that spanned from New Brunswick to Tennessee and reached as far as Alaska,” said Karen Loeffler, U.S. Attorney for the District of Alaska. “The results reached demonstrate the close cooperation between the United States and Canada and their law enforcement officers whose duty it is to investigate, stop and deter those who illegally target diminishing wildlife resources and do so for commercial gain.”
“In this conspiracy, Dunn and Conrad flouted U.S. law and international agreements that protect marine mammals like the narwhal from commercial exploitation,” said Acting Assistant Attorney General Dreher. “If left unchecked, this illegal trade has the potential to irreparably harm the species. The Justice Department will continue to investigate and prosecute wildlife traffickers in order to protect these species for future generations to enjoy.”
“The cooperation between Service and NOAA investigators and between the United States and Canada that led to these prosecutions reflects the type of partnerships needed to protect narwhals and other species worldwide from wildlife trafficking,” said William C. Woody, Assistant Director for Law Enforcement for the U.S. Fish and Wildlife Service. “NOAA OLE takes the unlawful importation of protected marine mammals very seriously,” said NOAA-Office of Law Enforcement Special Agent in Charge Logan Gregory. “NOAA OLE will continue to investigate those who unlawfully import marine mammal products and profit from marine protected species such as the narwhal.”
A narwhal is a medium-sized whale with an extremely long tusk that projects from its upper left jaw. Narwhals are marine mammals protected by the Marine Mammal Protection Act and are listed on Appendix II of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). It is illegal to import parts of marine mammals into the United States without the requisite permits/certifications, and without declaring the merchandise at the time of importation to U.S. Customs and the U.S. Fish and Wildlife Service. Narwhal tusks are commonly collected for display purposes and can fetch large sums of money.
Dunn is scheduled to be sentenced by Chief U.S. District Judge Ralph R. Beistline in the District of Alaska on March 20, 2014. The maximum penalty Dunn faces for conspiring to illegally traffic, and trafficking narwhal tusks is five years of incarceration and a fine of $250,000. The maximum penalty Conrad faces for conspiring to illegally import and illegally traffic narwhal tusks, conspiring to commit money laundering crimes and illegally trafficking narwhal tusks is twenty years of incarceration and a fine of $250,000.
The trial of co-defendant Andrew J. Zarauskas is set to begin in Bangor, Maine, on February 4, 2014. Co-defendant Gregory R. Logan is pending extradition from Canada to the District of Maine.
These cases are part of Operation Nanook, a multi-agency effort to detect, deter and prosecute those engaged in the unlawful trafficking of narwhal tusks. The cases were investigated by agents from National Oceanic and Atmospheric Administration - Office of Law Enforcement and the U.S. Fish and Wildlife Service - Office of Law Enforcement, with extensive support and collaboration from Environment Canada - Wildlife Enforcement. The cases are being prosecuted by Trial Attorney Todd S. Mikolop of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division and Assistant U.S. Attorney Steven E. Skrocki of the District of Alaska.Tax Preparer Admits Preparing False Tax ReturnsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that SHALANDA JENKINS, 32, of New Britain, waived her right to indictment and pleaded guilty yesterday before U.S. Magistrate Judge William I. Garfinkel in Bridgeport to aiding and assisting in the filing of false federal income tax returns.
According to court documents and statements made in court, JENKINS worked as a tax return preparer at Tax Express, which has locations in New Haven and West Haven. While working at Tax Express, JENKINS assisted in the preparation of 31 false federal individual income tax returns for her clients, but without the clients’ knowledge of the returns’ false items. Specifically, JENKINS created false education credits, false child and dependent care credits, and various other false items in order to create additional refunds for her clients. The 31 fraudulent returns generated large refunds for JENKINS’ clients and caused a tax loss of $131,670 to the government.
JENKINS is scheduled to be sentenced by U.S. District Judge Stefan R. Underhill on April 1, 2014, at which time she faces a maximum term of imprisonment of three years and a fine of up to $100,000.
JENKINS’ clients are required to resolve their own tax liability with the Internal Revenue Service.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Syracuse, New York - Upstate Laboratories, Inc. was sentenced following its guilty plea to committing mail fraud related to the falsification of over 3,300 laboratory results from 2008 through 2010.Read the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced today that Upstate Laboratories, Inc., 6034 Corporate Drive, East Syracuse, New York was sentenced today by the Hon. Judge Glenn T. Suddaby following its guilty plea to committing mail fraud related to the falsification of over 3,300 laboratory results from 2008 through 2010. Judge Suddaby imposed a $150,000 fine and placed Upstate on Probation for 5 years. Upstate has gone out of business but the Court ordered it to prepare an environmental compliance plan and permit government inspections should it ever resume business operations.
As set forth in the plea agreement and charge, Upstate Laboratories had been a certified laboratory in the business of performing chemical analysis of water and soil samples supplied by public and private clients. Samples for which chemical degradation was an issue required Upstate Laboratories to perform analysis within specified time-frames (“holding times”) after the samples were obtained. Upstate Laboratories further promised to utilize required procedures to ensure that the samples did not degrade.
For samples that required a prompt turnaround time, Upstate Laboratories charged a fee greater than for samples that did not. For all samples, Upstate Laboratories represented to clients that analysis would be and was performed in accordance with required analysis standards. Upstate Laboratories submitted invoices for its analysis and was paid through use of the United States mail.
Notwithstanding representations of proper and timely sample analysis, from 2008 through 2010 Upstate Laboratories engaged in the routine “backdating” of samples results where employees changed the dates when the samples were analyzed to make it appear that analysis had occurred within the required time periods when in fact they had not. Upstate Laboratories thereafter prepared false and fraudulent analysis reports representing that samples were properly analyzed within required time frames and that the results were valid when they were not.
This case was investigated by Special Agents of the Environmental Protection Agency, Office of Inspector General and Criminal Investigation Divisions. The case was prosecuted by Assistant United States Attorney Craig Benedict. Questions may be directed to AUSA Benedict at 315-448-0726 or cell phone 315-391-1110.
Statement by U.S. Attorney Jenny Durkan on Seattle Police Department LeadershipRead the Press Release
"True and effective reform of the Seattle Police Department will require steady work and strong leadership. Today Mayor Murray provided that leadership and charted a clear course for moving forward. I look forward to working with him and interim Chief Harry Bailey, and welcome their strong commitment to constitutional and effective policing. I also want to recognize Jim Pugel’s service and leadership. He has made reform a strong priority throughout his tenure as interim Chief. I have worked with both Jim Pugel and Harry Bailey, and know they love this City and are dedicated to the officers and mission of the Department.
Together, the Justice Department, the City of Seattle, the Monitor, and members of the police department and our community have identified reforms that must take root at the Seattle Police Department. The consent decree details how those changes will be implemented. Over the last several months, we have made strong progress on the building blocks of reform. There is a new comprehensive use of force policy in place, approved by the federal judge overseeing this process. We also have agreed on new policies around Stops and Detentions and Biased-Free Policing that have been submitted to the Court and we hope will be approved shortly.
The next several months are critical to the reform process, and the commitment by the Mayor and Chief are essential for success. Together with the Community Police Commission we are developing new training around all the new policies. We are also working to develop and adopt a new policy and training for crisis intervention and interactions with those affected by mental illness or substance abuse.
Done right, the new Chief of Police will have the necessary framework to lead the Seattle Police Department to be the national model for urban policing."-- Jenny A. Durkan, United States Attorney, Western District of Washington
Statement by U.S. Attorney Jenny Durkan on Seattle Police Department LeadershipRead the Press Release
"True and effective reform of the Seattle Police Department will require steady work and strong leadership. Today Mayor Murray provided that leadership and charted a clear course for moving forward. I look forward to working with him and interim Chief Harry Bailey, and welcome their strong commitment to constitutional and effective policing. I also want to recognize Jim Pugel’s service and leadership. He has made reform a strong priority throughout his tenure as interim Chief. I have worked with both Jim Pugel and Harry Bailey, and know they love this City and are dedicated to the officers and mission of the Department.
Together, the Justice Department, the City of Seattle, the Monitor, and members of the police department and our community have identified reforms that must take root at the Seattle Police Department. The consent decree details how those changes will be implemented. Over the last several months, we have made strong progress on the building blocks of reform. There is a new comprehensive use of force policy in place, approved by the federal judge overseeing this process. We also have agreed on new policies around Stops and Detentions and Biased-Free Policing that have been submitted to the Court and we hope will be approved shortly.
The next several months are critical to the reform process, and the commitment by the Mayor and Chief are essential for success. Together with the Community Police Commission we are developing new training around all the new policies. We are also working to develop and adopt a new policy and training for crisis intervention and interactions with those affected by mental illness or substance abuse.
Done right, the new Chief of Police will have the necessary framework to lead the Seattle Police Department to be the national model for urban policing."-- Jenny A. Durkan, United States Attorney, Western District of Washington
Spokane Man Sentenced to Federal Prison for Unlawful Possession of A FirearmRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Kevin Robert Chastain, age 34, of Spokane, Washington, was sentenced on January 7, 2014 after having previously pleaded guilty in September, 2013 to the charge of being a Previously Convicted Felon in Possession of a Firearm. United States District Court Judge Lonny R. Suko sentenced Chastain to a 41-month term of imprisonment, to be followed by three years of court supervision after he is released from Federal prison.
According to information disclosed during the court proceedings, on April 2, 2012, Chastain was seen arguing with an unidentified man who had just struck Chastain. Witnesses called police upon seeing the altercation. During the argument, Chastain, a convicted felon, pulled a loaded, semi-automatic handgun. Deputies from Spokane County Sheriff's Office arrived shortly after the altercation began and Chastain ran. While running from police, Chastain tossed the loaded handgun away and also discarded a backpack, which contained magazines and ammunition. Chastain was thereafter arrested by Spokane County Deputies. Chastain has previous felony convictions for Residential Burglary, Trafficking in Stolen Property, Possession of Stolen Property, Attempted First Degree Theft, and Possession of a Stolen Vehicle.
Michael C. Ormsby stated, "Persons prohibited from possessing firearms and/or ammunition take note: The United States Attorney's Office for the Eastern District of Washington is, and will continue to be, committed to prosecute aggressively prohibited persons who unlawfully possess firearms and/or ammunition in this District."
This investigation was conducted by Spokane County Sheriff's Office and ATF. The case was prosecuted by Rudy J. Verschoor, an Assistant United States Attorney for the Eastern District of Washington.
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Sioux Falls Woman Sentenced in Marijuana Distribution ConspiracyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, woman convicted of conspiracy to distribute marijuana was sentenced on January 6, 2014, by the Honorable Karen E. Schreier, U.S. District Judge.
Georgia Pfeifle, age 24, was sentenced to six months in custody and six months of home confinement, to be followed by two years of supervised release. She was also fined $1,000.
Pfeifle was charged by a Superseding Information with Conspiracy to Distribute Marijuana on October 10, 2013. She pled guilty on October 16, 2013.
Pfeifle joined a conspiracy to illegally distribute marijuana in South Dakota and elsewhere. During her involvement, she personally obtained, delivered and distributed marijuana in South Dakota, collected and received payments for marijuana, and deposited those payments to other co-conspirators’ accounts.
This case was investigated by the U.S. Department of Homeland Security – Immigration and Customs Enforcement in both South Dakota and California. Assistant U.S. Attorney Connie Larson prosecuted the case.
Pfeifle was ordered to turn herself into the U.S. Marshals Service on January 21, 2014.
Shreveport Man Sentenced to 10 Years in Prison for Being A Felon in Possession of A FirearmRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that Darrell Rogers Johns, 32, of Shreveport, was sentenced by U.S. District Judge Donald E. Walter, to 10 years in prison and three years of supervised release for one count of possession of a firearm and ammunition by a felon. Judge Walter also ordered that the firearm and ammunition involved be forfeited. Johns was found guilty on October 9, 2013, after a two-day bench trial.
Based on witness testimony, documents and other evidence presented at the trial, it was established that on February 11, 2011, Shreveport police stopped Johns’ vehicle because it matched the description of a vehicle sought in an ongoing criminal case. Johns gave consent to search his vehicle, and 11 rounds of .40 caliber ammunition was found. His residence was also searched, and a Smith & Wesson handgun loaded with 12 rounds of .40 caliber ammunition was found. Johns accompanied another person earlier to two pawn shops where he directed the person to purchase the firearm at one pawn shop and then to purchase the ammunition at a second pawn shop.
Johns was on parole at the time of his arrest. Before his arrest, he was convicted of the following state felony charges: possession of a Schedule II, controlled dangerous substance (cocaine), Caddo Parish District Court, 1999; forgery, Caddo Parish District Court, 2001; unauthorized entry of an inhabited dwelling, Caddo Parish District Court, 2005; possession of a Schedule II, controlled dangerous substance (crack cocaine), Caddo Parish District Court, 2006; and attempted possession with intent to distribute a Schedule I, controlled dangerous substance (marijuana), Bossier Parish District Court, 2010.
The Shreveport Police Department; the Louisiana Department of Public Safety and Corrections, Probation and Parole; and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide program started in 2001 to reduce violence by aggressively enforcing existing federal firearms laws.
Shiprock Man Sentenced to Forty-One Months for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Tyrell Elliot Frank, 27, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced today to 41 months in federal prison to be followed by two years of supervised release for his assault conviction.
Frank was arrested in April 2012, based on a criminal complaint charging him with assault. He subsequently was indicted and charged with assault with a dangerous weapon and assault resulting in serious bodily injury. According to court filings, on April 1, 2012, Frank repeatedly struck another Navajo man with a machete. As a result of the assault, the victim suffered severe cuts to his left arm and his back.
In Aug. 2013, Frank pleaded guilty to Count 2 of the indictment, charging him with assault resulting in serious bodily injury. In his plea agreement, Frank admitted that during the early hours of April 1, 2012, people arrived at his residence and approached him. Frank stated that, because he recently had been released from the hospital after having been assaulted, he struck a person he did not know with a machete causing him serious bodily injury. Frank stated that he later learned that the victim did not intend to harm him.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
Rochester Sisters Plead Guilty to Sex TraffickingRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Jerese Blue, 27, and Chellsie Blue, 23, both of Rochester, N.Y., pleaded guilty to conspiracy to commit sex trafficking of minors before U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of life in prison and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that the two sisters conspired to recruit and entice two victims, knowing that the victims were under the age of 18 years old. Specifically, Chellsie and Jerese Blue paid for and posted ads for two minors on Backpage.com to advertise the two minors as “escorts.” The defendants further provided transportation for the minor victims to meet with customers to engage in commercial sex acts and allowed the use of their residences on Arnett Boulevard in Rochester for the minors to engage in commercial sex acts.
In April 2012, Rochester Police began investigating the whereabouts of a 14-year-old female runaway. When the girl was found, she stated that from April 14 to April 18, she and another 17-year-old female had been introduced to prostitution by the defendants. According to the 14-year-old female, between April 15 and April 18, she had sexual relationships with numerous customers. On occasion, the 14-year-old was taken to meet with customers at two motels, where the defendants paid for the room for the victim to engage in commercial sex. The defendants kept most of the money earned by the minors through the prostitution activity.
“The facts of this case represent a nightmare scenario for parents and children alike,” said U.S. Attorney Hochul. “Here, vulnerable girls were taken by the defendants and transported into a life of misery. At sentencing, this Office will seek punishment appropriate for this reprehensible conduct.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The pleas are the culmination of an investigation on the part of the FBI's Cyber Crimes Task Force, which includes the Rochester Police Department under the direction of Acting Chief Michael Ciminelli, and Special Agents of the Federal Bureau of Investigation, under the direction of Brian P. Boetig, Special Agent in Charge.
Sentencing for Chellsie Blue is scheduled for April 9, 2014 at 3:00 p.m. Jerese Blue will be sentenced at 3:30 p.m., both before Judge Geraci.Rochester Man Pleads Guilty to Harboring Illegal Aliens for Commercial GainRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Zhou Wang Ni, 48, of Rochester, N.Y., pleaded guilty to harboring an illegal alien for commercial gain before U.S. District Court Judge David G. Larimer. The charge carries a maximum penalty of 10 years in prison and a fine of up to $250,000.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that the defendant is the manager of the Grand Super Buffet Chinese Restaurant located on Jefferson Road in Henrietta, N.Y. As manager, Ni hired several illegal aliens to work in the restaurant who he knew were not lawfully present in the United States. The defendant housed these workers in properties he owned around Rochester and paid them in cash. While conducting surveillance, federal agents observed Ni driving these individuals to work at the restaurant on several occasions.
Homeland Security Investigations conducted an immigration audit of the restaurant during the course of the investigation during which the defendant concealed the fact that those illegal aliens were working. However, agents had video footage of those same workers being picked up by the defendant in the morning, being driven to the restaurant, and then working inside during the day.
The plea is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Sentencing is scheduled for May 12, 2014 at 2:00 p.m. before Judge Larimer.Ringleader and Co-Conspirators Sentenced to Federal Prison in Mail Theft and Bank Fraud SchemeRead the Press Release
More Than 2,000 Pieces Of Stolen Mail Recovered Belonging to Over 845 Mail Theft VictimsMEDFORD, Ore. – Robert Lee Powelson, 30, Medford, Oregon was sentenced Tuesday to 161 months in federal prison by Senior U.S. District Judge Owen M. Panner after his convictions for, and his leadership role in, conspiracy to commit mail theft, conspiracy to commit bank and mail fraud, and aggravated identity theft. Dallas Lee Tedford, 32, and Kayla Ann Strange, 23, both of Medford, were sentenced to federal prison Monday by U.S. District Judge Michael J. McShane for their convictions for conspiracy to commit mail theft, conspiracy to commit bank fraud, and aggravated identity theft. Tedford was sentenced to 44 months; Strange was sentenced to 50 months. As part of each sentence, each defendant received a mandatory consecutive term of two years in prison required by federal statute where a victim’s identification was possessed or used in committing bank or mail fraud. Each defendant was also ordered to pay $70,380.09 in restitution to victims of the fraud.
Between September 2012 and March 2013, Powelson, Tedford, Strange, and other conspirators, repeatedly stole large quantities of U.S. mail from residents and businesses in the Medford, Oregon area. After stealing the mail, they removed financial instruments, financial documents, and identity documents of victims, and collected personal identifiers from those documents to create profiles of victims to further their fraud schemes. The fraud schemes included forging and cashing or depositing stolen personal checks into bank accounts defendants controlled; applying for and controlling credit card accounts in the names of victims; taking control of checking accounts of victims; and opening American Express Bluebird reloadable cards in the names of victims. As part of the bank fraud scheme, victim identities from the stolen mail were used to obtain fraudulent credit cards which were mailed to residences where the defendants retrieved and used them.
According to sentencing documents submitted by AUSA Byron Chatfield, a total of seven search warrants were executed at three motels, two vehicles, and two residences in the Medford area during the investigation. One of the victims had just recently moved from the state of Alaska to Ashland, Oregon to be with family and friends because of terminal cancer, and died while unknowingly being victimized by the defendants and the other co-conspirators. Another victim learned that their personal identifying information was being used in the fraud scheme while they were with their sick child at Doernbecher Children’s Hospital in Portland. As a result, the victim’s family experienced financial problems with their bank accounts and credit cards during a required lengthy stay with their child at Doernbecher’s.
Powelson also eluded police in two separate high-speed vehicle pursuits while involved in stealing mail. The subsequent search of the car Powelson and Strange used to elude police following one pursuit uncovered 12 financial account cards and 84 pieces of stolen mail including checks, check books, and financial and tax documents such as W-2’s and 1099 forms belonging to 81 Medford victims. The identity documents and checks recovered from the vehicle were collected together by Strange after they had been stolen from the mail. Also, Strange documented stolen victim identifying information in notebooks for future use. Following the second high speed pursuit, police found Powelson along with other associates at a local motel and upon searching their room police seized approximately 1,000 pieces of stolen mail belonging to approximately 365 individuals and businesses from the Medford area.
During a search of a residence where Strange and Powelson received mail and credit cards in victim’s names, police recovered 300 pieces of stolen mail including financial and tax information and 128 stolen checks that belonged to 161 victims from the Medford area. Police also discovered cell phone text messages between Tedford and another co-conspirator with instructions about how to activate a victim’s stolen credit card. A later search of Tedford’s apartment by police recovered a large quantity of stolen mail, victim identity profiles, 138 stolen and altered checks, and American Express Bluebird cards.
Numerous fraudulent checks seized from Tedford’s apartment had been loaded and reloaded on multiple Bluebird cards through smart phone imagery. Often the checks were altered in between load attempts in an effort to deceive the check scanning software and/or manual review of the checks at the time the checks were uploaded. Fraudulent Bluebird cards were also recovered during several of the other search warrants and intercepted from the mail stream destined for addresses used by Powelson, Strange, and Tedford for the fraud. Many of the fraudulent Bluebird cards were determined to be related through shared account information, card-to-card transactions, the use of the same email addresses, and the loading of fraudulent checks through smart phone imagery. Transaction analysis related to those cards disclosed a total attempted fraud of at least $214,697.
The other federally charged defendants, Eduardo Navarro, 24, and Lana Marshall, 29, both of Medford, Oregon, are scheduled to be sentenced within the next few weeks.
This case was investigated by the Medford Police Department, Talent Police Department and the U.S. Postal Inspection Service and prosecuted by Assistant United States Attorney Byron Chatfield.
Rapid City Man Sentenced for Possession of A Firearm in Furtherance of Drug Trafficking CrimeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm in Furtherance of Drug Trafficking Crime was sentenced on January 3, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Jay Paul Gallego, age 28, was sentenced to 60 months in custody, 3 years of Supervised Release, and a $100 special assessment to the Federal Crime Victims Fund.
Gallego was indicted by a federal grand jury on January 23, 2013. He pled guilty to Possession of a Firearm in Furtherance of Drug Trafficking Crime on October 4, 2013.
On December 11, 2012, Gallego possessed with intent to distribute one gram of methamphetamine which was found during a search of his house. Law enforcement agents also found baggies, paraphernalia, and two firearms.
This case was investigated by the Northern Plains Safe Trails Task Force, the Federal Bureau of Investigation, and the Rapid City Police Department. Special Assistant U.S. Attorney Laura A. Shattuck prosecuted the case.
Gallego was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Illegal Possession of A FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Domestic Violence Offender in Possession of a Firearm and Ammunition was sentenced on January 2, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Shawn Muldoon, age 30, was sentenced to time served of 1 day and 2 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Muldoon was indicted by a federal grand jury on March 19, 2013, and he pled guilty to the offense on July 19, 2013.
In July 2012, near Rapid City, Pennington County sheriff’s deputies assisted a vehicle stuck on forest service land. The vehicle was occupied by Muldoon and others. During the vehicle search, investigators located a 9mm handgun and ammunition owned by Muldoon, who is prohibited from possessing firearms due to a 2003 domestic violence conviction.
The investigation was conducted by the Pennington County Sheriff’s Office and the U.S. Forest Service. The case was prosecuted by Assistant U.S. Attorney Sarah B. Collins.
Rapid City Man Sentenced for Felon in Possession of A FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Felon in Possession of a Firearm was sentenced on January 6, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Ryan Umbarger, age 23, was sentenced to 40 months in custody, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Umbarger pled guilty to the charge on October 9, 2013. The charge related to Umbarger possessing a stolen 9 mm caliber pistol and a stolen .30-.30 caliber rifle. Umbarger is prohibited from possessing firearms based on previous felony convictions.
This case was investigated by the Pennington County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Umbarger was immediately turned over to the custody of the U.S. Marshals Service.
Project Safe Childhood New Boston Man Sentenced on Child Pornography OffenseRead the Press Release
CONCORD, NEW HAMPSHIRE: Dana Moody, 57, of New Boston, was sentenced in United States District Court for the District of New Hampshire to 72 months in prison after pleading guilty to possession and distribution of child pornography, announced United States Attorney John P. Kacavas.
The investigation into Moody began in November of 2011 when the FBI was notified by the New Haven, Connecticut, Internet Crimes Against Children Task Force that an undercover officer had intercepted images of child pornography being transmitted by a computer user located in New Boston, New Hampshire.
Upon receiving the information, the FBI conducted a further investigation and secured a search warrant for Moody’s residence in New Boston. Computer evidence seized from Moody’s home was examined and found to contain several thousand images depicting the sexual assault of young children.
This case was prosecuted under Project Safe Childhood, a nationwide initiative by the U.S. 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 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.
This case was prosecuted by Assistant United States Attorney Helen White Fitzgibbon.
Posey County Man Sentenced for Illegal Possession of Numerous FirearmsRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that Jackie J. Whittley, Jr., age 32, of Cynthiana, was sentenced to 180 months in prison today by Chief U.S. District Judge Richard L. Young after being convicted of illegally possessing a sawed-off shotgun, along with numerous other firearms. In sentencing the defendant, Judge Young determined Whittley to be an armed career criminal. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, along with the Vanderburgh County and Posey County Sheriffs.
“The facts of this case show that the defendant thought he was above the law, and that recklessness put this community in danger,” Hogsett said. “This case is an example of what our collaborative Violent Crime Initiative aims to accomplish in Hoosier communities. This effort isn’t about making new laws -- we are focused on enforcing those laws already on the books.”
Whittley plead guilty to the charges on November 18, 2013. At the time of the guilty plea, Whittley admitted that he possessed 14 firearms and a sawed off shotgun at his home in Cynthiana. Officers had gone to Whittley’s home after clerks at a nearby gas station alerted them that Whittley had a gun in his possession and was making threatening statements. Whittley was apprehended after leading officers on a high speed motorcycle chase. Due to a criminal record that included three prior violent burglary convictions, Whittley received an enhanced penalty as an armed career criminal.
These indictments come as part of the U.S. Attorney's Violent Crime Initiative (VCI), and are the result of collaborative investigative efforts by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Indiana State Police.
Launched in March 2011, the VCI has produced a dramatic increase in the number of gun-related charges brought federally. In the year preceding the initiative, there were just 14 defendants charged with federal gun crimes by the U.S. Attorney's Office. In the nearly two years since, more than 200 defendants have been charged.
According to Assistant U.S. Attorney, Lauren M. Wheatley, who prosecuted the case for the government, Judge Young also imposed 3 years of supervised release. During the period of supervised release, Whittley must not possess firearm or destructive devices, nor consume alcohol or controlled substances.
Pill Mill Doctor Sentenced for Oxycodone ConspiracyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, and Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, announce that Dr. Scott Becker, 54, of Pembroke Pines, Florida, was sentenced yesterday to 70 months in prison, to be followed by three years of supervised release. Dr. Becker previously pled guilty to conspiring to distribute and dispense large amounts of oxycodone without a legitimate medical purpose and outside the usual course of professional practice. Dr. Becker also pled guilty to money laundering.
According to court documents, Becker agreed to forfeit $470,400 in money and property representing the illegal narcotics proceeds he earned as a result of his involvement as a physician at All Pain Management in Dania Beach. Between February 16 and September 17, 2010, Becker was employed as a clinic doctor at All Pain Management which, at the time, was owned by co-conspirators Vincent Colangelo and several other unnamed individuals. Colangelo pled guilty to narcotics, money laundering and federal income tax offenses on April 2, 2012, arising from his ownership of six pill mill clinics and a pharmacy in Broward and Miami-Dade Counties. According to a review of medical records, while at All Pain Management, Becker prescribed 932,259 oxycodone, 30 milligram pills during the course of 4,821 patient visits and more than 98% of Becker’s patients received prescriptions for oxycodone. Becker also laundered approximately $24,142 in illegal narcotics proceeds.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Ferrer thanked IRS-CI, DEA, and the Broward Sheriff’s Office, as well as the many other state and local agencies for their investigative work. This case is being prosecuted by Assistant U.S. Attorneys Scott Behnke and Roger Powell and Tax Division Trial Attorney Greg Tortella.
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.
Perry County Woman Sentenced to 78 Months ImprisonmentRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces today that Janice Ford Green of Marion, Alabama was sentenced today by Chief United States District Judge William Steele to 78 months imprisonment for possession of a firearm by a felon. The judge ordered that Green serve a three-year term of supervised release upon completing her term of imprisonment and that she pay a $100 mandatory special assessment. Green was indicted for knowingly possessing a 7mm magnum rifle as a convicted felon and firing it at law enforcement officials on or about April 17, 2013 in Marion, Alabama in the Southern District of Alabama, Northern Division.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives in cooperation with the Alabama Attorney General’s Office and the Alabama Bureau of Investigation. The case was prosecuted by Special Assistant United States Sinan Kalayoglu, Assistant United States Attorney Greg Bordenkircher, and Assistant United States Attorney Maria Murphy for the United States Attorney’s Office in Mobile, Alabama.
Omaha Man Sentenced for Possession with Intent to Distribute Crack CocaineRead the Press Release
On January 8, 2014, Davaughn Richard Lavell Perkins, age 24 of Omaha, was sentenced to five years in federal prison for possession with intent to distribute 28 grams or more of cocaine base, also known as crack cocaine. Following the prison sentence, Perkins will serve five years on supervised release. He was also ordered to forfeit $472 in cash to the United States.
On July 23, 2013, officers of the Lincoln/Lancaster County Narcotics Task Force executed a search warrant at a Lincoln apartment. Upon entry into the living room, officers found Davaughn Perkins on the floor and another individual on the couch. Small amounts of crack were found in the living room. During a search of Perkins' person, officers found a total of $472 in cash.
Perkins was arrested and taken to the Lancaster County Jail where he was searched as part of the booking process. During that search, a Lancaster County Corrections Officer saw Perkins attempt to conceal something in his hand. The officer obtained the item from Perkins, and it was found to be a baggie containing cocaine base, also known as crack cocaine, weighing 36.6 grams.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Oil Company Settles Allegations That It Knowingly Avoided Paying Federal Royalties for Several YearsRead the Press Release
DENVER – Big Sandy Oil Company, solely owned by James E. Cochran, has agreed to pay the United States $73,500, plus interest, to settle allegations that it violated the False Claims Act by knowingly failing to pay oil revenues Big Sandy owed to the United States.
The Department of the Interior’s Office of Natural Resources Revenue, which is primarily based in Lakewood, Colorado, is responsible for the collection, disbursement, and verification of oil and gas royalty payments to the government from companies that extract federal mineral resources across the country and in the Gulf of Mexico.
According to the United States, Big Sandy owes the United States a one-eighth share in revenues on oil it extracted from two parcels of land in the Allegheny National Forest in Warren County, Pennsylvania. After Big Sandy bought the parcels in 1990, the government informed Big Sandy multiple times about the government’s interest in the revenues from oil produced on this land. From 1990 through 2005, however, Big Sandy only sporadically paid royalties due and owing to the United States. Beginning in 2005 and continuing through 2013, Big Sandy failed to remit to the government any royalties at all from the subject parcels. In 2009, the government contacted Big Sandy about its failure to pay, and Big Sandy responded with assurances that it would pay the royalties it owed. Despite these assurances, Big Sandy avoided its obligation to pay for another four years.
In conjunction with efforts by the Office of Natural Resources Revenue, the settlement was the result of investigative efforts by the Department of the Interior’s Office of Inspector General and the Bureau of Land Management’s Special Investigations Group.
Special Assistant U.S. Attorney Zeyen Wu and Assistant U.S. Attorney Amanda Rocque handled this matter on behalf of the government.
The settlement agreement is neither an admission of liability by Big Sandy Oil Company, nor a concession by the United States that its claims are not well founded.
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North Park Gang Members Indicted in Racketeering ConspiracyRead the Press Release
SAN DIEGO – Twenty-four alleged North Park gang members and associates are charged in an indictment unsealed today as members of a racketeering conspiracy that involved cross-country sex trafficking of underage girls and women plus murder, kidnapping, robbery and drug-related crimes.
Early this morning detectives and agents from the San Diego Police Department and the FBI, with assistance from other agencies, made 17 arrests in San Diego, Arizona and New Jersey and served 11 search warrants in San Diego and Arizona. Four defendants were already in custody on other charges. The local defendants are scheduled to make their first court appearances tomorrow at 1:30 p.m. before U.S. Magistrate Judge Barbara Major. Three defendants are fugitives.
According to the federal grand jury indictment, the primary business of the gang was sex trafficking in 46 cities across 23 states. The organization was known as “BMS,” which is a combination of “Black MOB” and “Skanless” gangs, and these members are also allegedly aligned with other streets gangs, including Neighborhood Crips, Lincoln Park and West Coast Crips, among others.
The BMS gang was formed as a result of cooperation between these gangs and the members took on different responsibilities within the criminal enterprise, according to the indictment. Some managed the prostitutes and transported them all over the country; some forcefully coerced these women into prostitution and maintained their obedience and loyalty through acts of violence; some handled the money; some placed advertisements to generate business or booked motel rooms in which acts of prostitution took place; and others distributed drugs.
The defendants are charged with racketeering conspiracy - the statute traditionally used for organized-crime syndicates and mobsters. But as criminal street gangs such as these join forces and become more sophisticated and prolific in their illicit business pursuits, this statute is an effective tool to address all aspects of the criminal conduct.
This is the second time the U.S. Attorney’s office in this district has used the racketeering statute to charge dozens of gang members with operating a criminal enterprise that included drugs, human trafficking and violence. In the first case, 39 Oceanside gang members and associates were charged with racketeering, and to date, 34 have pleaded guilty.
“Together with our law enforcement partners, we have rescued scores of sex trafficking victims from the grips of gangsters and we have restored a higher level of safety to the gang’s operational base – the community of North Park - and beyond,” said U.S. Attorney Laura Duffy.
“The kind of sex trafficking described in this indictment is nothing less than modern-day slavery,” Duffy said. “Unfortunately, more gangs are expanding from traditional pursuits like drug dealing into this lucrative business. These gangsters are preying upon our youth, and we are using every law enforcement resource to keep our children and our communities safe from these predators.”
“This RICO investigation was truly a joint effort between the San Diego Police Department, the U.S. Attorney’s Office and the FBI,” said San Diego Police Chief William Lansdowne. “I am extremely proud of the detectives and the investigative personnel who worked tirelessly on this case which has increased the safety of our community. Thousands of hours were spent on intelligence gathering, undercover operations, and interviews of victims and witnesses. Due to the investigative efforts of all involved, girls and women were rescued from a life they were being forced into. In addition, numerous gang members and associates of this criminal organization have been indicted and/or arrested.”
FBI Special Agent in Charge Daphne Hearn, commented, "Today's arrests are the result of a long term multi-agency investigation conducted under the FBI's Innocence Lost National Initiative (ILNI). One of the goals of the FBI's ILNI is to disrupt and dismantle criminal enterprises responsible for the victimization of children through prostitution. Through the efforts of the ILNI, more than 2,300 children that were forced into prostitution have been located and recovered, and more than 1,200 subjects have been convicted. Today's arrest in San Diego and federal racketeering charges filed in this case exemplifies the FBI's continued effort to work with our law enforcement partners to disrupt and dismantle criminal enterprises that seek to profit from the sexual exploitation of our nation's children.
“The collaboration between federal and local law enforcement in San Diego is unparalleled, and this case is another fine example of utilizing our strategic law enforcement partnerships to combat an 3 increasingly dangerous fusion of violent gangs and organized crime, said Derek Benner, special agent in charge for ICE’s Homeland Security Investigations in San Diego. “ With this group of violent street gang members, drug dealers, sex traffickers, and other criminals off the streets, we have delivered on our commitment to public safety so that the law abiding people living and working in our neighborhoods are safe.”
The indictment alleges that these defendants recruited girls and women from El Cajon Boulevard and elsewhere to work as prostitutes. And they also used social media like Instagram, Facebook, YouTube and Twitter to lure unwitting young girls into the lifestyle with rap videos and promises of a glamorous life. Many of these videos are posted on YouTube.
The gang members allegedly forced many of the trafficking victims into prostitution through threats or actual violence. According to the indictment, they branded their prostitutes as if they were property - with tattoos of gang monikers, bar codes, or a pimp’s name. Members of BMS sold, traded and gifted these girls and women among each other.
All of the 60 female sex trafficking victims, including 11 minors, were offered resources to help them start a new life.
U.S. Attorney Duffy urged parents and school administrators to be vigilant in tracking the online activities and academic performance of girls who could fall prey to gang members who would manipulate them.
According to court documents, some defendants attended parties known as “Players’ Balls,” which are invitation-only gatherings for pimps held in San Diego and around the country glorifying gang life, prostitution and pimping. One of the defendants in this indictment, Robert Banks, received an award at a national "Players’ Ball" function.
After a “Players Ball” last month in Las Vegas, a photo was posted on Facebook of Banks posing with a “Pimp Cup” and a “Pimp stick” and a woman on each arm – including a known prostitute. According to court documents, it is common for pimps to have chalices and scepters, known as Pimp Cups and sticks, made to symbolize their status as a pimp. These items are typically worth thousands of dollars, as they are commonly made of gold, decorated with jewels, and designed with the pimp’s moniker, gang name or gang number.
Pimps often have dental “grills” made that can be permanently affixed or removable. Typically, they are made of gold and can cost thousands of dollars.
According to the indictment, the government is seeking forfeiture of these items and others purchased with illicit proceeds generated from the enterprise’s alleged criminal activities.
During today’s searches, law enforcement officials seized two firearms; 20 to 30 marijuana plants; six luxury cars; flat screen televisions; several thousand dollars in cash; numerous pimp paraphernalia such as cups, sticks and hats; more than 50 pairs of Air Jordan shoes.
DEFENDANTS Criminal Case No. 13CR4510-JAH Aaron Dwayne Pittman
Alvin Bernard Mitchell
Robert Banks III
Hakeem Tayari Dunn
Marcus Anthony Stevenson
Labarron Carnell Coker
Malik Hassan Kelly
Harold Randolph Martin
Anthony Dwayne Edmond
Tony Brown
Jakari Deandrez Blake
Dante Levell Grant*
Ronald Ledon Jackson*
Jonathan Devon Price
Bradley West Reynolds
Akili Lynn Cobb
Antwon Ruason Hollingsworth*
Christopher Michael Wall
Everett Burdette Williams
Marcus John Anthony Griffin
Edward Reynolds
Nicole Lee Rice
Yasenia Armentaro
Nadine Davis *Fugitive
**The following defendants face the possibility of life in prison due to special allegations in the
indictment, which increase the maximum penalty: Tony Brown, Robert Banks, Hakeen Dun, Everette
Williams, Dante Grant, Chris Wall, Aaron Pittman, Nicole Rice, Malik Kelly, Harold Martin, Ronal
Jackson, Marcus Stevenson, Alvin Mitchell, Labarren Coker. The special allegations are that these
defendants committed conduct that formed the basis of (1) sex trafficking of a minor, (2) sex trafficking
by force, or (3) transportation of minors for prostitution. SUMMARY OF CHARGESTitle 18, United States Code, Section 1962(d)—Conspiracy to Conduct Enterprise Affairs Through a
INVESTIGATING AGENCIES
Pattern of Racketeering Activity; Title 18, United States Code, Section 1963—Criminal Forfeiture.
Maximum Penalties: 20 years’ incarceration, a fine of $250,000, three years of supervised release.San Diego Police Department
Federal Bureau of Investigation
Homeland Security Investigations*An indictment itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the government meets its burden in court of proving guilt beyond a reasonable doubt.
Morrisville Man Sentenced to 25 Plus Years for Child PornographyRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that yesterday in federal court, United States District Judge Louise W. Flanagan sentenced NATHANIEL BELTRAN GRINSTEAD , 38, to 306 months imprisonment, followed by a lifetime of supervised release.
A Federal Grand Jury returned a Criminal Indictment on May 1, 2012. On February 12, 2013, GRINSTEAD pled guilty to one count of manufacturing/producing child pornography.
According to the investigation, on October 24, 2011, the Morrisville, North Carolina, Police Department received information from school officials regarding several incidents of sexual abuse. Evidence from a cell phone and home computer seized at GRINSTEAD’s residence revealed images of the sexual abuse of minors.
Investigation of this case was conducted by the Morrisville Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Ethan Ontjes prosecuted the case for the United States.This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Moorhead Man Sentenced for Producing Child PornographyRead the Press Release
FARGO – U.S. Attorney Timothy Q. Purdon announced that on Jan. 8, 2014, Dustin Howard Muscha, 33, of Moorhead, Minn., was sentenced before U.S. District Judge Ralph R. Erickson on two counts of sexual exploitation of minors and two counts of possession of materials involving the sexual exploitation of minors.
Judge Erickson sentenced Muscha to 30 years’ imprisonment to be followed by a lifetime of supervised release. Muscha was ordered to register as a sex offender and to pay a $400 special assessment to the crime victim’s fund. Restitution will be determined at a later date.
United States Attorney Timothy Purdon said, “This conviction and stiff sentence are a great example of the outstanding work done every day by our Project Safe Childhood team here in North Dakota. Law enforcement officers from Fargo Police Department, North Dakota Bureau of Criminal Investigation and federal Homeland Security Investigations and our Project Safe Childhood prosecutor worked cooperatively to identify the victims in this case with in a matter of hours of the discovery of the illegal images. The resulting sentence is one that should serve as a stark warning to those who would exploit children in our community.”
"This conviction serves as a stern warning about the consequences awaiting child predators who target the most vulnerable members of our communities," said Acting Special Agent in Charge of HSI St. Paul, William Lowder. "Protecting our children from predators remains a priority for HSI and we will continue to work closely with our law enforcement partners to identify, arrest and bring these criminals to justice."
This case came to the attention of law enforcement after Muscha lost his cellular telephone while attending a concert at the Fargo Dome on Sept. 29, 2012. The phone was found by a private citizen who turned it over to the Sprint retailer located in Fargo. In an attempt to identify the owner of the cellular telephone, the manager at Sprint powered the phone on and subsequently discovered child pornography. The cellular telephone was immediately turned over to law enforcement who learned that the number assigned to the cellular phone was registered to Dustin Muscha in Moorhead, Minn.
That same day, a North Dakota Bureau of Criminal Investigation (ND BCI) forensic examiner began conducting a forensic examination of the cellular telephone which revealed hundreds of child pornographic files, including four videos produced by Muscha which
depict three different prepubescent girls engaged in sexually explicit conduct.The investigation revealed that Muscha created the four videos between April 2011 and September 2012. Specifically, two of four videos were produced in Minnesota and the remaining two videos were produced in North Dakota. Special agents with Homeland Security Investigations (HSI) and the ND BCI conducted further investigation and successfully identified and located the three girls in the videos.
The following day, a search warrant was executed at Muscha’s residence where copies of the child pornographic files were located as well as additional files of child pornography.
Muscha was immediately arrested and a second search warrant was executed at a storage shed that Muscha maintained in North Dakota. Additional video files were seized from this storage shed, including a fifth video that Muscha produced in 2002 in Moorhead, Minn., depicting yet another prepubescent child engaged in sexually explicit conduct.This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by Homeland Security Investigations, Fargo Police Department and the North Dakota Bureau of Criminal Investigations.
Assistant U.S. Attorney Jennifer Klemetsrud Puhl prosecuted the case.
Mississippi Woman Pleads Guilty to Laundering Drug MoneyRead the Press Release
JJackson, Miss – Patrina Bester Hayes, 37, of Paulding, Mississippi, joined her co-defendant Lornell Von Moore, 48, also of Paulding, by pleading guilty today to conspiring with Moore to launder his drug money, announced U.S. Attorney Gregory K. Davis and Special Agent in Charge Gabriel Grchan of Internal Revenue Service Criminal Investigation (IRS CI). Moore pleaded guilty to the same offense on December 19, 2013 and is currently serving nine years in federal prison for narcotics distribution.
During his heyday, Moore garnered over 2 million dollars in drug profits in just a two year period from 2008 and 2009. During this time and before, Moore and Hayes operated LVM Trucking out of Louin, Mississippi, and washed millions of dollars of drug profits through the trucking company’s bank accounts as well as their private bank accounts.
As a result of the investigation into the narcotics trafficking of Moore and the money laundering activities of Moore and Hayes, investigators of the Drug Enforcement Administration and the Internal Revenue Service through the office of the United States Attorney for the Southern District of Mississippi seized property involved in the scheme. Property seized included:
2010 Chevrolet Camaro;
2005 Freightliner Century Tractor;
2001 Freightliner Columbia;
2006 Hyundai Trailer;
2008 Blue Chevrolet Corvette;
2009 Yamaha Rhino ATV;
2005 Freightliner Century tractor;
2007 Utility Van;
2009 black Chevrolet Silverado truck C1500;
2010 Gray Lexus;
2003 Freightliner Columbia Tractor;
Two residences in Jasper County; and
3 firearms
Moore and Hayes will be sentenced on March 27, 2014 by U.S. District Judge Daniel P. Jordan, III. They each face a maximum penalty of 20 years in prison and a $500,000 fine.
“I commend the hard working agents with IRS Criminal Investigation and DEA who worked tirelessly on the money laundering aspect of this case, as well as the federal, state and local law enforcement agents who worked together to dismantle this drug distribution organization,” said U.S. Attorney Gregory K. Davis.
IRS-CI Special Agent in Charge Gabriel L. Grchan stated: “The guilty plea entered by Patrina Hayes marks the end of the drug trafficking organization headed by Lornell Von Moore. Hayes was the last defendant to plead guilty, and will be sentenced for her role in Moore’s criminal operation. Likewise, the seizure of Moore’s operating assets has further served to completely dismantle a dangerous drug distribution network. IRS Criminal Investigation is committed to continuing its work with the United States Attorney’s Office and our law enforcement partners to put an end to narcotics trafficking in our communities.”
The Internal Revenue Service Criminal Investigation Division and the Drug Enforcement Administration conducted the criminal investigation of the financial affairs leading to the current guilty plea. Officers from the Ridgeland Police Department, Jackson Police Department, Hinds County Sheriff=s Office, Jasper County Sheriff’s Office, Madison County Sheriff’s Office, and the Mississippi Bureau of Narcotics, participated in the investigation of Moore’s drug trafficking organization.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Middlebury Man Involved in Illegal Campaign Contribution Scheme Is SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PAUL ROGERS, 41, of Middlebury, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to six months of imprisonment, followed by two years of supervised release, for his role in a scheme to direct illegal contributions into the campaign of a candidate for the U.S. House of Representatives. ROGERS was also ordered to pay a $5,000 fine.
According to court documents and statements made in court, in August 2011, the State of Connecticut applied for a court order enjoining Roll Your Own (“RYO”) smoke shops from continuing to operate without complying with state law governing tobacco manufacturers. RYO smoke shops are retail businesses that sell loose smoking tobacco and cigarette-rolling materials and offer customers the option of paying a “rental” fee to insert the loose tobacco and the rolling materials into a RYO machine, which is capable of rapidly rolling large quantities of cigarettes. Customers did not pay a tax on the RYO cigarettes when rolled by the RYO machines, in contrast to cigarettes purchased over-the-counter.
ROGERS owned a RYO smoke shop with two locations in Waterbury. Fearing that the Connecticut General Assembly would enact legislation harmful to RYO smoke shop owners’ business interests during the 2012 legislative session, ROGERS and others engaged in a scheme to direct conduit campaign contributions into the campaign of Christopher Donovan, a candidate for the U.S. House of Representatives. At the time, Donovan was also the Speaker of the Connecticut House of Representatives. ROGERS and his co-conspirators recruited multiple individuals to serve as conduit contributors to the campaign. These individuals wrote checks to the campaign in their own names, and ROGERS and his co-conspirators reimbursed them with cash, thereby concealing the fact that RYO smoke shop owners were contributing to the campaign.
In November and December 2011, participants in the scheme made four $2,500 conduit contributions to the Chris Donovan for Congress campaign. On approximately January 31, 2012, the campaign submitted to the Federal Election Commission (“FEC”) a report of campaign committee’s receipts and disbursements for the period October 1, 2011 through December 31, 2011. The report falsely stated the source and amount of the four $2,500 contributions that were received and deposited by the campaign committee during that time period.
ROGERS and others subsequently directed an additional $17,500 in conduit contributions to the Donovan for Congress Campaign, as well as a conduit contribution in the amount of $2,500 to a political party.
On January 23, 2013, ROGERS waived his right to indictment and pleaded guilty to one count of devising a scheme to bribe a public official, and one count of conspiring to make false statements to the Federal Election Commission (“FEC”) and to impede the FEC’s enforcement of federal campaign finance laws.
Seven other individuals, including two employees of the Donovan for Congress campaign, have also been convicted of charges stemming from this scheme.
This matter was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys Christopher M. Mattei and Eric J. Glover.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Mexican Man Gets Significant Sentence for Cocaine ConspiracyRead the Press Release
HOUSTON – Oscar Nava-Valencia, 42, of Guadalajara, Mexico, has received a 25-year sentence for his role in the smuggling of a 3,100 kilogram load of cocaine from Panama, announced United States Attorney Kenneth Magidson.
Nava-Valencia previously pleaded guilty and was sentenced late yesterday afternoon in federal court in Houston.
U.S. District Judge Ewing Werlein Jr. sentenced Nava-Valencia to a term of 300 months in federal prison and further ordered him to pay a $5,000 fine.
In March 2006, Panamanian authorities seized approximately 2,080 kilograms of cocaine from a warehouse in Panama City, Panama. The seized cocaine was part of a larger load totaling approximately 3,100 kilograms which was to be shipped from Panama to Mexico and eventually destined for the United States. Nava-Valencia, along with other associates, was to take possession of approximately 1,250 kilograms of cocaine once it arrived in Mexico. In January of 2010, Nava-Valencia was apprehended by Mexican authorities and extradited to the United States in January 2011.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by the Drug Enforcement Administration. Assistant United States Attorneys James Sturgis prosecuted the case.
Media AdvisoryRead the Press Release
Montgomery, Alabama - U.S. Attorney George L. Beck, Jr., FBI Special Agent in Charge Stephen E. Richardson, Auburn Police Chief Paul Register, Dothan Police Chief Greg Benton, Elmore County Sheriff Bill Franklin, Houston County Sheriff Andy Hughes, Montgomery Police Chief Kevin Murphy, and Montgomery County Sheriff D.T. Marshall, will hold a press conference to announce the formation of the Central Alabama Violent Gang Safe Streets Task Force.
The mission of the new Central Alabama Violent Gang Safe Streets Task Force is to identify and target for prosecution criminal groups that are responsible for drug trafficking, money laundering, alien smuggling, and crimes of violence such as murder and aggravated assault, robbery, and violent street gang activity.
The press conference will be held on Thursday, January 9, 2014 at 2:30 p.m., at the U.S. Attorney’s Office, 131 Clayton Street, Montgomery, Alabama, and the media is invited. A press release will be provided at the conference.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Manhattan U.S. Attorney Simultaneously Files Additional Healthcare Fraud Claims Against Novartis Pharmaceuticals Corp. and Settles Lawsuit Against Bioscrip, Inc., in Connection with A Multimillion-Dollar Kickback Scheme Involving A Prescription DrugRead the Press Release
BioScrip Agrees to Pay $15 Million and Makes Extensive Factual Admissions to Resolve Claims
Preet Bharara, the United States Attorney for the Southern District of New York, and Ronald T. Hosko, the Assistant Director of the Federal Bureau of Investigation, Criminal Investigative Division (“FBI”), announced today that the United States has filed additional civil healthcare fraud claims in Manhattan federal court against NOVARTIS PHARMACEUTICALS CORP. (“NOVARTIS”) and BIOSCRIP, INC. (“BIOSCRIP”). The Government’s Amended Complaint seeks treble damages and civil penalties under the False Claims Act against NOVARTIS and BIOSCRIP for NOVARTIS providing kickbacks, in the form of patient referrals and in the guise of rebates, to BIOSCRIP in exchange for BIOSCRIP recommending refills to Exjade patients. The lawsuit alleges that, as a result of this kickback scheme, Medicare and Medicaid have paid tens of millions of dollars in reimbursements based on false, kickback-tainted claims for Exjade shipped by BIOSCRIP.
Simultaneous with the filing of the Amended Complaint, U.S. District Judge Colleen McMahon approved a settlement to resolve the United States’ claims against BIOSCRIP. Under that settlement, which takes into account BIOSCRIP’s limited financial resources, BIOSCRIP (i) agrees to pay $11,685,705.43 to the United States; (ii) admits numerous facts concerning its relationship with NOVARTIS; and (iii) agrees to cooperate with the United States in the prosecution of the claims against NOVARTIS. BIOSCRIP has also agreed in principle to pay $3.31 million to a group of States to settle the States’ claims based on the same alleged conduct.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Novartis is caught having orchestrated yet another scheme whereby it used the lure of kickbacks to co-opt a healthcare providers’ independence and, in this case, turned pharmacy employees at BioScrip into salespeople for Exjade. By allegedly having BioScrip promote refills under the guise of purported ‘counseling’ and ‘education,’ Novartis caused patients to receive one-sided advice that did not discuss Exjade’s serious, potentially life-threatening, side effects. Further, by hiding this illegal quid pro quo from federal healthcare programs, Novartis caused the public to pay tens of millions of dollars for kickback-tainted drugs.”
FBI Assistant Director Ronald T. Hosko said: “Investigations such as these are a high priority for the FBI and we will aggressively pursue providers that boost their profits at the expense of Medicare and other government programs. Due to the potential impact to the nation’s health care system and to the public from these types of multifaceted schemes, we have created a centralized team to provide nationwide support to our field offices called the Major Provider Response Team. The FBI is committed to working with our partners in these types of investigations and appreciates the public’s involvement in the process.”
According to the allegations contained in the Amended Complaint filed today in Manhattan federal court:
NOVARTIS markets and manufactures Exjade, an iron chelation drug approved for use by patients who have iron overload resulting from blood transfusions. Between February 2007 and May 2012, NOVARTIS orchestrated a scheme whereby it offered kickbacks, in the form of patient referrals and under the guise of rebates, to BIOSCRIP, a specialty pharmacy, in exchange for BIOSCRIP increasing its Exjade refills through biased recommendations to patients.
BIOSCRIP was part of a Novartis-created exclusive distribution network for Exjade, and through this network, Novartis was able to refer Exjade patients to particular pharmacies within the network. In order to obtain greater numbers of patient referrals and rebates, BIOSCRIP, in coordination with NOVARTIS, implemented a program of calling patients to recommend Exjade refills or to get patients who stopped ordering Exjade refills to resume ordering them.
NOVARTIS and BIOSCRIP promoted these calls as part of an effort to offer clinical “counseling” or “education” to Exjade patients. In fact, however, the real purpose behind this call program was to obtain more refill orders so that Novartis could increase its Exjade sales and meet its national Exjade sales target and BIOSCRIP, in turn, could get more patient referrals and higher rebates. Thus, the BIOSCRIP employees making those calls to Exjade patients emphasized the importance of getting refills, but ignored Exjade’s serious, potentially life-threatening side effects, such as kidney failure and gastrointestinal hemorrhage. Indeed, according to a former BIOSCRIP supervisor, the incentives offered by NOVARTIS caused BIOSCRIP to focus exclusively on getting Exjade patients to order refills, rather than caring for these patients. This Exjade scheme violated the federal anti-kickback statute, which prohibits the offer or payment of remuneration to induce the purchase or recommendation of any drug or service covered by Medicare, Medicaid, or another federal healthcare program.
By orchestrating this scheme, NOVARTIS and BIOSCRIP further caused pharmacies to submit tens of thousands of claims to Medicare and Medicaid, resulting in those programs paying out tens of millions of dollars in reimbursements based on false claims tainted by kickbacks.
Further, as part of its settlement with the United States, BIOSCRIP made extensive factual admissions, including, among other things, that:
- BIOSCRIP was one of three specialty pharmacies permitted to dispense Exjade as part of “EPASS,” NOVARTIS’s distribution network for Exjade.
- NOVARTIS controlled how approximately half of the patient prescriptions received by EPASS were distributed among BIOSCRIP and the other two EPASS pharmacies.
- In 2007, NOVARTIS informed BIOSCRIP that the level of refill orders among BioScrip’s Exjade patients was below the refill levels achieved by the other two EPASS pharmacies. NOVARTIS demanded that BIOSCRIP implement a Performance Improvement Plan (“PIP”) due to its low refill levels relative to the other EPASS pharmacies. NOVARTIS informed BIOSCRIP that it had to increase its refill levels or NOVARTIS would cut off the flow of certain patient referrals to BIOSCRIP and, potentially, remove BIOSCRIP from EPASS.
- In response, and to avoid losing access to patient referrals, BIOSCRIP launched an intensive effort to (i) increase overall patient orders for Exjade refills, and (ii) “restart” many patients who had stopped ordering Exjade. To achieve that goal, BIOSCRIP hired a group of staff to work exclusively on Exjade (the “Exjade Team”). BIOSCRIP directed the Exjade Team to call many patients to encourage them to order refills and to encourage many patients who had stopped ordering refills to “restart” Exjade.
- The efforts of the Exjade Team resulted in significant increases in Exjade refill levels at BIOSCRIP – by September 2007, the refill levels at BIOSCRIP were higher than at the other two EPASS pharmacies. Recognizing the improvement in refill levels at BIOSCRIP, NOVARTIS continued to direct patient referrals to BIOSCRIP.
- BIOSCRIP developed a protocol, named ScripCare, for the Exjade Team to call patients to encourage many patients to order refills and to encourage many patients who had stopped ordering refills to restart Exjade. In developing ScripCare, BIOSCRIP shared key elements with NOVARTIS.
- The Exjade marketing team at NOVARTIS provided input on aspects of the ScripCare protocol, including how to discuss potential side effects with Exjade patients.
- In 2007, NOVARTIS began issuing monthly “Exjade Scorecards” to BIOSCRIP and the other two EPASS pharmacies that measured, among other things, “adherence” scores. Based on discussions with NOVARTIS, BIOSCRIP knew that the “adherence” scores in the Exjade Scorecards were designed to show how long Exjade patients continued to order refills. Later that year, NOVARTIS began discussions with BIOSCRIP about a plan to allocate more patient referrals to BIOSCRIP if, according to the adherence scores in the Exjade Scorecards, it remained the highest performer in terms of obtaining refill orders.
- In 2008, BIOSCRIP agreed to a new patient allocation plan proposed by NOVARTIS, which linked the percentage of patient referrals for BIOSCRIP to its refill rates as measured by the Exjade Scorecard.
- In 2011, BIOSCRIP was placed under a “corrective action” plan by NOVARTIS due to its low refill rates relative to the other EPASS pharmacies and other issues, and stopped receiving certain patient referrals. In response, BIOSCRIP launched an intensive effort to “restart” many patients and to encourage many patients to order refills. By late 2011, BIOSCRIP’s refill rates had increased significantly; and, starting in January 2012, NOVARTIS increased its allocation of patient referrals to BIOSCRIP based on its higher refill rates relative to the other EPASS pharmacies in late 2011.
The additional claims in the Amended Complaint seek treble damages and penalties under the False Claims Act for the tens of millions of dollars in reimbursements that Medicare and Medicaid paid for Exjade shipments that resulted from the kickback scheme involving NOVARTIS and BIOSCRIP. In addition, the Government seeks compensatory damages under the common law for the tens of millions of dollars for the profits that NOVARTIS and BIOSCRIP obtained as the result of Medicare and Medicaid reimbursements for Exjade.
The allegations of fraud stated in the Complaint were first brought to the attention of federal law enforcement by a whistle-blower who filed a lawsuit under the False Claims Act. The False Claims Act permits the Government to recover up to three times the amount of damages incurred by the United States, plus civil penalties ranging from $5,500 to $11,000 per violation. Private parties who have knowledge of fraud committed against the Government may file suit on behalf of the Government and share in any recovery. The United States may then intervene and file its own lawsuit for treble damages and penalties, as it did in this case.
Mr. Bharara praised the investigative work of the FBI’s Major Provider Response Team, HHS-OIG, and the Medicaid Fraud Control Units for New York, Washington, and Ohio. He also thanked the Commercial Litigation Branch of the U.S. Department of Justice’s Civil Division in Washington D.C., for its extraordinary assistance in this case.
The case is being handled by the Office’s Civil Frauds Unit. Mr. Bharara established the Civil Frauds Unit in March 2010 to bring renewed focus and additional resources to combating healthcare and other types of frauds. Assistant U.S. Attorneys Li Yu, Rebecca C. Martin, and Ellen M. London are in charge of the case.
U.S. v. Novartis & BioScrip Stipulation & Order of Settlement & Dismissal Re Bioscrip
U.S. v. Novartis Amended ComplaintLos Departamentos de Justicia y Educación de EE.UU. Publican un Paquete de Orientación sobre la Disciplina Escolar para Mejorar el Ambiente Escolar y Disminuir la Violencia EscolarRead the Press Release
WASHINGTON –El Departamento de Justicia de EE.UU. (DOJ), en colaboración con el Departamento de Educación de EE.UU. (ED), dio a conocer hoy un paquete de orientación sobre la disciplina escolar que ayudará a los estados, distritos y escuelas a desarrollar prácticas y estrategias para mejorar el ambiente escolar, y asegurar que sus políticas y prácticas cumplan con la ley federal. A pesar de que los incidentes de violencia escolar han disminuido en general, muchas escuelas todavía luchan por crear un ambiente seguro y positivo. Las escuelas pueden mejorar la seguridad asegurándose de que los ambientes sean acogedores y que las acciones disciplinarias sean justas, no discriminatorias, y eficaces.
Cada año, demasiados estudiantes faltan a clase debido a suspensiones y expulsiones, incluso por infracciones menores de las reglas de la escuela. Los estudiantes de color y con discapacidad se ven afectados de manera desproporcionada por la disciplina escolar. El paquete de orientación proporciona recursos para la creación de ambientes escolares seguros y positivos, que son indispensables para elevar el éxito académico de los estudiantes y cerrar las brechas de rendimiento.
"Cuando un estudiante comete una infracción rutinaria de la disciplina, éste debe terminar en la dirección escolar y no en el cuartel de la policía", dijo Eric Holder, fiscal general de EE.UU. "Esta guía de orientación promoverá prácticas disciplinarias justas y eficaces para que las escuelas sean seguras, inclusivas y brinden apoyo a todos los estudiantes. Para mantener a los jóvenes de nuestro país seguros y en el camino correcto, tenemos que garantizar la protección federal de los derechos civiles, ofrecer alternativas a la disciplina excluyente, y proporcionar información útil a los funcionarios escolares".
El paquete de recursos tiene cuatro componentes:
- La carta de orientación a los Estimados Colegas, preparada en colaboración con el Departamento de Educación, brinda a las escuelas orientación sobre los derechos civiles y la disciplina escolar. También indica cómo las escuelas pueden cumplir con las obligaciones legales de la ley federal en la aplicación de la disciplina estudiantil sin discriminar a los estudiantes por motivos de raza, color u origen nacional;
- El documento sobre los Principios Rectores, preparado por ED, se basa en investigaciones recientes y las mejores prácticas para describir tres principios claves y los pasos de acción relacionados que pueden ayudar a los estados y las localidades a mejorar el ambiente y la disciplina escolar;
- El Directorio de Recursos Federales de Ambiente Escolar y Disciplinarios, preparado por ED, indica los extensos recursos de asistencia técnica y otros recursos relacionados con el ambiente y la disciplina escolar que están a disposición de las escuelas y distritos; y
- El Compendio de Leyes y Reglamentos Sobre la Disciplina Escolar, preparado por ED, un catálogo en línea sobre las leyes y reglamentos relacionados con la disciplina escolar en cada uno de los 50 estados, el Distrito de Columbia y Puerto Rico, donde se pueden comparar las leyes de todos los estados y jurisdicciones.
"La enseñanza y el aprendizaje eficaz no pueden realizarse a menos que los estudiantes se sientan seguros en la escuela", dijo Arne Duncan, secretario de Educación de EE.UU. "Las normas disciplinarias positivas pueden ayudar a crear un ambiente de aprendizaje más seguro sin tener que depender en gran medida en las suspensiones y expulsiones. Las escuelas también deben comprender sus obligaciones con los derechos civiles y evitar prácticas disciplinarias injustas. Tenemos que mantener a los estudiantes en la clase donde puedan aprender. Estos recursos son un paso en la dirección correcta".
El paquete de orientación es un recurso que surge de la Iniciativa de Apoyo a la Disciplina Escolar (SSDI), un proyecto conjunto de los departamentos de Justicia y Educación. La SSDI fue puesta en práctica en el 2011, y advierte sobre el vínculo que se crea entre la escuela y la prisión cuando las prácticas disciplinarias conducen a los estudiantes a abandonar la escuela para entrar en el sistema penal. Como alternativa, la iniciativa promueve el apoyo de prácticas disciplinarias que fomentan entornos de aprendizaje seguros, incluyentes y positivos, para así mantener a los estudiantes en la escuela. El Departamento de Justicia aplica el Título IV de la Ley de Derechos Civiles de 1964, que prohíbe la discriminación por motivos de raza u origen nacional en las escuelas públicas, y en el Título VI de la Ley de Derechos Civiles de 1964, que prohíbe a las escuelas, las fuerzas del orden público, y los beneficiarios de asistencia financiera federal, discriminar por motivos de raza, color u origen nacional.
El paquete de orientación es también el resultado de la iniciativa Ya es Hora del presidente Obama para reducir la violencia cometida con armas de fuego. La propuesta pide al Departamento de Educación que reúna y difunda las mejores prácticas disciplinarias para ayudar a los distritos escolares a desarrollar y poner en práctica políticas disciplinarias equitativas. Para continuar los esfuerzos de DOJ/ED relacionados con la SSDI y también cumplir el compromiso de "Ya es Hora", el paquete de orientación ha sido desarrollado con el aporte adicional de los defensores de los derechos civiles, las principales organizaciones de educación y socios filantrópicos.
Para ver los documentos de recurso y orientación, visite www.ed.gov/school-discipline. Las agencias estatales de educación y las escuelas también pueden solicitar una copia del paquete llamando al servicio ED Pubs (Education Publications) al (877) 433-7827.
- La carta de orientación a los Estimados Colegas, preparada en colaboración con el Departamento de Educación, brinda a las escuelas orientación sobre los derechos civiles y la disciplina escolar. También indica cómo las escuelas pueden cumplir con las obligaciones legales de la ley federal en la aplicación de la disciplina estudiantil sin discriminar a los estudiantes por motivos de raza, color u origen nacional;
Justice Department Obtains $317,000 in Discrimination Settlement with Euless, Texas, Apartment ComplexRead the Press Release
The United States has settled a housing discrimination lawsuit in Euless, Texas, concerning discrimination against persons of Middle Eastern and South Asian descent, the Justice Department announced today. Under the agreement, defendants in United States v. Stonebridge at Bear Creek LLP et al will pay a total of $107,000 in civil penalties and $210,000 in a damages fund to compensate victims of the defendants’ discrimination identified during the term of the agreement.
The agreement was filed today in federal court in Dallas and takes the form of a joint proposed order whose terms may be enforced by the court. The department’s complaint alleged that, for several years, the owners, employees and management company of Stonebridge at Bear Creek Apartments violated the Fair Housing Act by denying housing opportunities to persons of Middle Eastern and South Asian descent. Among other unlawful actions, Stonebridge’s property manager ordered leasing agents to misrepresent apartment availability based on the accent and perceived race or national origin of potential tenants, and to segregate those approved tenants of Middle Eastern or South Asian descent into two buildings in order to isolate any smells allegedly associated with ethnic cuisine that the manager disliked.
“The Fair Housing Act ensures that people searching for a home are protected from discrimination, no matter what part of the world their family comes from” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department will continue to vigorously protect the rights of all individuals to obtain housing free from discrimination.”
Under the agreement, which must be approved by the federal court in Texas, the defendants must adopt a nondiscrimination policy and enact or undertake numerous other corrective measures, including training, record keeping and monitoring. In addition, the property manager who ordered the discrimination will no longer be employed by the owners of Stonebridge at Bear Creek Apartments or its management company.
Fighting illegal housing discrimination is a top priority of the department’s Civil Rights Division. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt/ . Persons who believe they have experienced or witnessed unlawful housing discrimination may call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the department at [email protected] , or contact HUD at 1-800-669-9777. More information about the Fair Housing Act can also be found at www.justice.gov/crt/housing/ or www.hud.gov/fairhousing .
Justice Department Closes Investigation of Prison in Pittsburgh, Pa., After Pennsylvania Department of Corrections Works Cooperatively to Improve Security PracticesRead the Press Release
The Justice Department announced today that it has closed its investigation of State Correctional Institution – Pittsburgh after the Pennsylvania Department of Corrections (PDOC) significantly improved security policies and practices at the prison and throughout the Pennsylvania prison system. The reforms are intended to protect prisoners, especially gay, transgender and gender nonconforming prisoners, from harm and discrimination. The PDOC has also assured the United States that by no later than Dec. 1, 2014, it will have the prison audited and deemed fully compliant with the National Standards to Prevent, Detect, and Respond to Prison Rape promulgated under the Prison Rape Elimination Act of 2003 (PREA).
The department opened this investigation in December 2011, after local authorities initiated criminal prosecutions against seven of the prison’s officers for assaulting and sexually abusing vulnerable prisoners. In May 2013, the department notified Pennsylvania officials that while significant measures had already been undertaken to address the misconduct that had occurred, more needed to be done. Since then, Pennsylvania has worked cooperatively to address the department’s concerns and has made substantial progress toward improving the safety of its prisoners. These improvements include statewide reforms to oversight and accountability measures, abuse and misconduct investigations, prisoner screening procedures and the grievance system. The Pittsburgh prison has also improved the way it monitors its inmates and secures its physical plant.
“We commend the Pennsylvania Department of Corrections for its commitment to improving security policies and practices in Pittsburgh and its other facilities,” said Acting Assistant Attorney General Jocelyn Samuels for the department’s Civil Rights Division. “These improvements, especially those concerning PREA, provide a clear path forward to ensuring the safety of prisoners in their care.”
“I am very pleased with the outcome of this investigation,” added U.S. Attorney David J. Hickton for the Western District of Pennsylvania. “Correctional facilities have a constitutional obligation to adequately protect prisoners from harm. The positive result of this investigation demonstrates our commitment to ensuring that the constitutional rights of all citizens are protected.”
The department initiated this investigation under the Civil Rights of Institutionalized Persons Act, which prohibits a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities. This investigation was conducted by Special Litigation Counsel Avner Shapiro, Trial Attorneys Kyle Smiddie and Aaron Zisser, Analyst Gary Graca of the Special Litigation Section of the Civil Rights Division and Amie Murphy with the U.S. Attorney’s Office for the Western District of Pennsylvania. Secretary John Wetzel and his staff at the PDOC have fully cooperated with this investigation. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Honolulu Women Arraigned on Indictment for Fraudulent Debt Elimination SchemeRead the Press Release
HONOLULU - Jennifer McTigue, age 46, and Sakara Blackwell, a/k/a: Dawn Sakaguchi, age 38, both of Honolulu, were arraigned today in United States District Court after a federal grand jury returned a forty-five (45) count indictment against them and Marc Melton, age 43, for fraud, money laundering and other offenses relating to a debt elimination scheme to defraud lending institutions, buyers of real property and escrow companies through a process of filing fraudulent mortgage release documents with the Hawaii Bureau of Conveyances. Both defendants pled not guilty. The indictment was returned on January 3, 2014, and was unsealed upon the arrests of McTigue, Melton, and Blackwell today.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to the indictment, McTigue, Melton and Blackwell operated a scheme which involved filing fraudulent “satisfaction of mortgage” forms with the State of Hawaii Bureau of Conveyances which caused lending institutions holding the mortgages not to be paid on the outstanding debts when the defendants sold the properties, resulting in substantial profits. The debt elimination scheme resulted in the defrauding of not only mortgage lenders, but also innocent buyers who unwittingly bought properties subject to the fraudulently released mortgages.
The Indictment describes transactions involving seven specific properties and alleges that McTigue, Melton and Blackwell fraudulently obtained the releases of over $4.5 million in mortgages or other financial liens against those properties. The indictment alleges that the defendants then sold the properties for prices totaling over $3.3 million.
The defendants are charged with 27 counts of mail or wire fraud each of which carry maximum penalties of 30 years imprisonment and a fines of $1,000,000. McTigue, Melton, and Blackwell are respectively charged with seven, five, and four counts of money laundering, i.e., engaging in monetary transactions of a value greater than $10,000 in criminally derived property, each of which carry maximum penalties of ten years imprisonment and a fine of $250,000. All three defendants are charged with conspiring to commit mail and wire fraud and conspiring to launder funds derived from mail and wire fraud. The maximum penalties for the conspiracies are five years imprisonment and a fine of $250,000, for the former and ten years imprisonment and a fine of $250,000 for the latter. The indictment also seeks forfeiture of property derived from proceeds of the mail and wire fraud, as well as property involved in the money laundering offenses.
The charges in the indictment are merely accusations and each defendant is presumed innocent until proven guilty. United States Magistrate Judge Barry M. Kurren set a trial date of March 11, 2014, before Senior United States District Judge Helen Gillmor.
The prosecution resulted from an investigation conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Ken Sorenson is handling the prosecution.