Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
3 February 2014
Stratford Man Sentenced to 51 Months in Prison for Stealing More Than $600k Through Tax Refund SchemeRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BENJAMIN GREEN, III, 45, of Stratford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 51 months of imprisonment, followed by three years of supervised release, for stealing more than $600,000 through a corrupt tax refund scheme.
On November 12, 2013, after a three-day trial, GREEN was convicted of one count of making a false claim against the United States, and one count of attempting to obstruct the due administration of the internal revenue laws. According to the evidence presented at trial, in March 2009, GREEN filed an Individual Income Tax Return for the 2008 tax year with the IRS. On the return, GREEN asserted the fraudulent “Original Issue Discount” (“OID”) tax scheme, in which taxpayers falsely claim significant amounts of OID interest income and federal tax withholding on their federal tax returns. The object of the OID tax scheme is to obtain large tax refunds from the U.S. Treasury, which is done by fraudulently claiming significant federal tax withholdings that exceed the smaller amount of tax due on the falsely claimed income.
On his federal tax return, GREEN falsely claimed to have received $920,063 in taxable interest income, and to have $929,702 of federal income tax withholdings for the 2008 tax year. Based on this false information, GREEN claimed a refund from the IRS in the amount of $616,434. The IRS erroneously issued a $616,434 tax refund to GREEN based on his fraudulent tax return. After receiving the refund, GREEN spent or dispersed almost all of the funds within months by taking trips to Hawaii and other locations, shopping at high-end retail-stores, paying off his mortgage and other loans, making improvements to his home, and giving money to family members.
When the IRS tried to collect the erroneously issued refund, GREEN undertook a course of conduct to inhibit the IRS’s efforts to recover the money, including sending frivolous correspondence to the IRS, hiding real property in the name of a nominee entity to impede the IRS’s collection efforts, and falsely complaining that the IRS had commenced unauthorized collection and enforcement actions against him.
The IRS was eventually able to recover a portion of the erroneously issued refund through wage levies, levies on bank accounts, and seizure of GREEN’s personal property.
Today, Judge Bryant ordered GREEN to pay $582,074.50 in restitution, which reflects the remaining balance of the money GREEN stole, plus interest.
This matter was investigated by the Internal Revenue Service – Criminal Investigation, and was prosecuted by Tax Division Trial Attorney Sean Beaty and Assistant U.S. Attorney Susan Wines.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]San Ramon Divorce Attorney Sentenced to 24 Months in Prison for Unlawfully Intercepting Telephone Conversations and Tax EvasionRead the Press Release
SAN FRANCISCO – Mary Nolan, a divorce and family law attorney in San Ramon, Calif., was sentenced to 24 months in prison for unlawful interception of telephone communications and tax evasion, announced United States Attorney Melinda Haag, FBI Special Agent in Charge David J. Johnson, and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. Martinez.
Nolan, 61, pleaded guilty on September 27, 2013, to five felony counts – one count of unlawful interception of communications and four counts of tax evasion. In pleading guilty to the charges, Nolan admitted causing her staff to illegally intercept telephone conversations by accessing a listening device that private investigator Christopher Butler had installed in a victim’s vehicle, willfully evading more than $400,000 in federal taxes between 2005 and 2009, and obstructing justice by submitting false contracts to the IRS during an audit.
The sentence was handed down by the Honorable Charles R. Breyer, Senior United States District Court Judge. Judge Breyer also included a three year period of supervised release, 240 hours community service, as well as $468,918.01 in restitution, $500.00 special assessment, and Nolan’s resignation of her bar license. The Court ordered Nolan to surrender to the United States Marshals Service to serve her term of imprisonment no later than March 6, 2014. At the time of sentencing, she had already paid the restitution and resigned her bar license.
Butler, who pleaded guilty to unlawful interception and several other offenses on May 4, 2012, admitted having installed approximately seventy-five to one hundred unlawful listening devices at the request of clients or their attorneys, including the listening device in Nolan’s victim’s vehicle in August 2007. Butler was sentenced to 60 months’ imprisonment on this charge, to be served concurrently with the 96-month sentence on his other counts of conviction.
“The defendant’s conduct was reprehensible and a dishonor to those who practice law with the utmost commitment and integrity. The sentence sends a strong message and confirms that the United States Attorney’s Office will prosecute those who abuse the public trust to the fullest extent of the law,” stated U.S. Attorney Melinda Haag.
“Attorneys and those trusted with the confidence of others are expected to uphold the law and pursue justice with integrity,” said FBI Special Agent in Charge David J. Johnson of the San Francisco Field Office. “The FBI will continue to partner with the U.S. Attorney’s Office to expel those who abuse their professional licenses and take advantage of the criminal justice system.”
“This sentence should send a clear message that no one is above the law,” said IRS-Criminal Investigation Special Agent in Charge José M. Martinez. “Ms. Nolan misused her position for personal gain while cheating the government out of hundreds of thousands of dollars. Those who intentionally evade taxes should know they will not go undetected and will be held accountable.”
Nolan was indicted on September 6, 2012, by a federal grand jury charging her with tax evasion for the years 2005 through 2009, in violation of 26 U.S.C. § 7201; unlawful interception of communication, in violation of 18 U.S.C. § 2511(1)(a) and (4)(a); and conspiracy to unlawfully intercept communications, in violation of 18 U.S.C. § 371.
Hartley M. K. West is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Alycee Lane. The prosecution is the result of a lengthy investigation by the FBI, the Internal Revenue Service – Criminal Investigation, and the Contra Costa County District Attorney’s Office.
(Nolan indictment )
Salina Man Pleads Guilty to Federal Gun ChargeRead the Press Release
TOPEKA, KAN. A Salina man pleaded guilty Monday to a federal firearms charge, U.S. Attorney Barry Grissom said.
Kalun James Purucker, 22, Salina, Kan., pleaded guilty to one count of unlawful possession of a firearm. In his plea, he admitted that the Salina Police Department stopped a car in which he was a passenger on April 9, 2012. Police recovered a .380 caliber handgun and ammunition. At the time, Purucker was prohibited by federal law from possessing a firearm because of a prior felony conviction.
Sentencing is set for April 28. Both parties have agreed to recommend a sentence of between 37 and 46 months in federal prison. Grissom commended the Salina Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Richard Hathaway for their work on the case.Rosebud Woman Charged with False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substance by FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, woman has been indicted by a federal grand jury for False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substance by Fraud.
Letha Leroy, age 48, was indicted on January 15, 2014. She appeared before U.S. Magistrate Judge Mark A. Moreno on January 31, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges stem from an incident that took place on January 23, 2013, when Leroy presented a forged prescription to a pharmacy to obtain Vicodin pills, knowing the prescription was falsified.
The charges are merely accusations and Leroy is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Office of Inspector General, Department of Health and Human Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Leroy was released on bond pending trial. A trial date has been set for March 25, 2014.
Rosebud Woman Charged with False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substance by FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, woman has been indicted by a federal grand jury for False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substance by Fraud.
Letha Leroy, age 48, was indicted on January 15, 2014. She appeared before U.S. Magistrate Judge Mark A. Moreno on January 31, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges stem from an incident that took place on January 23, 2013, when Leroy presented a forged prescription to a pharmacy to obtain Vicodin pills, knowing the prescription was falsified.
The charges are merely accusations and Leroy is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Office of Inspector General, Department of Health and Human Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Leroy was released on bond pending trial. A trial date has been set for March 25, 2014.
Potomac Man Sentenced in $13 Million Mortgage Fraud SchemeRead the Press Release
Deliberately Avoided Learning the Truth as to the Fraudulent Nature of the Mortgages
Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Jared Fanning, age 35, of Potomac, Maryland, today to 22 months in prison followed by three years of supervised release for wire fraud in connection with a scheme to fraudulently obtain mortgages worth approximately $13 million. Judge Messitte also entered an order that Fanning pay restitution and forfeiture of $108,355.21, the amount of loss attributable to him resulting from the scheme.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office; Acting Inspector General Fred W. Gibson, Jr., Federal Deposit Insurance Corporation; and Special Agent in Charge Cary A. Rubenstein, U.S. Department of Housing and Urban Development.
According to his guilty plea, from June 2006 through June 2007, Fanning helped real estate agents Michael Abobor, Daniel Ofei and others obtain mortgages for the agents’ clients. During that time, Fanning learned that the information provided by the agents for mortgage applications was probably false. For example, on multiple occasions, Fanning calculated debt-to-income and reported to the agents that the client had insufficient income. The agents responded immediately with “forgotten” monthly income of hundreds of dollars or more, leading Fanning to suspect that the additional income information supplied by the real estate agents was false. Despite Fanning’s concerns, he helped the agents obtain 24 mortgages totaling approximately $13 million.
According to evidence presented at the hearing, as a result of the fraudulent scheme, financial institutions suffered over $4.5 million in actual losses as a result of the financial transactions in which Fanning played a part.
Michael Abobor, age 38, and Daniel Ofei, age 39, both of Bowie, Maryland previously pleaded guilty to their roles in the conspiracy. Judge Messitte sentenced Abobor to 51 months in prison and ordered him to forfeit $2,026,205 and pay restitution of $1,832,650. Judge Messitte sentenced Ofei to 37 months in prison and ordered Ofei to pay restitution of $5,950,000. Two other co-conspirators of Ofei and Ababor in the broader scheme, Emeka Udeze, age 38 of Bowie, a licensed mortgage broker, and Shola Risikat Balogun, age 47, of Upper Marlboro, Maryland, have also pleaded guilty and await sentencing.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage Fraud/index.html.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.United States Attorney Rod J. Rosenstein thanked Assistant U.S. Attorney Sujit Raman, who prosecuted the case.
Oakland Woman Pleads Guilty to Stealing SSI BenefitsRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Laura
Mathieu, 50, of Oakland, Maine, pled guilty to stealing more than $1,000 in Supplemental
Security Income (“SSI”) benefits from the Social Security Administration (“SSA”). SSI benefits are paid to, among others, people who are disabled and have low income and few resources.According to court records, Mathieu submitted a false statement to SSA that was used for determining her eligibility for SSI benefits. Mathieu falsely stated her household was limited to herself and her children and she denied receiving any other help or financial assistance. In fact, she was living with her husband who was providing financial assistance. Mathieu knew that she had to truthfully disclose her living arrangements and the income earned by any member of her household. She confessed to investigators that she concealed that information because she believed that the information would disqualify her from receiving SSI benefits.
Mathieu faces up to 10 years in prison and a $250,000 fine, or both. She will be sentenced after completion of a pre-sentence report by the United States Probation Office.
The investigation was conducted by the Office of Inspector General of the Social
Security Administration.Northland Man Indicted for Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been indicted by a federal grand jury for receiving and attempting to distribute child pornography over the Internet.
Steven H. Taylor, 23, of Kansas City-North, was charged in an eight-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Jan. 29, 2013. The indictment was unsealed and made public today upon Taylor’s arrest and initial court appearance.
The federal indictment charges Taylor with five counts of attempting to distribute child pornography over the Internet, two counts of receiving child pornography over the Internet and one count of possessing child pornography.
The indictment also contains a forfeiture allegation, which would require Taylor to forfeit to the government any property used to commit the alleged offenses, including two desktop computers.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI and the Nixa, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."New Orleans Men Sentenced for Bank RobberiesRead the Press Release
MYRON SAUNDERS, 35, and LAMAR NERO, 24, both residents of New Orleans, were sentenced today by U. S. District Judge Nannette Jolivette Brown for bank robbery and attempted bank robbery, announced U.S. Attorney Kenneth Allen Polite, Jr. SAUNDERS and NERO were sentenced to imprisonment for 228 months and 180 months, respectively. Each will be placed on 5 years supervised release following incarceration and incur a $500 special assessment.
In July 2013, following a six-day trial, a federal jury found SAUNDERS and NERO guilty of the June 24, 2011, robbery and December 24, 2011, attempted robbery of a Chase Bank in New Orleans, Louisiana, as well as the November 5, 2011, robbery of a Fidelity Homestead Bank in Metairie, Louisiana. SAUNDERS and NERO were also found guilty of using a firearm during the robbery of the Chase Bank.
The case was investigated by special agents of the Federal Bureau of Investigation and officers and detectives of the New Orleans Police Department and Jefferson Parish Sheriff’s Office.
The prosecution was handled by Assistant U.S. Attorneys Nolan D. Paige, Harry W. McSherry and Special Assistant U.S. Attorney Brian C. Ebarb.
New Charge V. NYS Senator John Sampson - Superseding IndictmentRead the Press Release
Sampson Superseding Indictment
Nampa Man Admits to Theft of Rocks from BLM LandsRead the Press Release
BOISE – William Brian Kirkpatrick, 45, of Nampa, Idaho, pleaded guilty today to theft of government property, U.S. Attorney Wendy J. Olson announced. Kirkpatrick appeared before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
According to the plea agreement, Kirkpatrick admitted that he drove his truck onto public lands administered by the Bureau of Land Management (BLM) and stole decorative sandstone rock to sell for use in landscaping projects. Kirkpatrick admitted that between November 2012 and June 2013, he stole more than 9,800 pounds of sandstone from BLM lands, which retailed for $1,472, and sold the rock commercially.
The charge of theft of government property is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Kirkpatrick is scheduled to be sentenced on April 21, 2014.
The indictment is the result of an investigation by criminal investigators of the Bureau of Land Management, United States Department of the Interior.
Multi-County Marijuana Cultivation Case UpdateRead the Press Release
FRESNO, Calif. — A marijuana cultivators was sentenced and two entered guilty pleas today for their involvement in separate large-scale marijuana cultivation cases involving private lands in Stanislaus, Mariposa, Fresno, and Kern Counties, U.S. Attorney Benjamin B. Wagner announced.
920 Marijuana Plants/Processed Marijuana/Assault Rifle Seized from Kern County Ranch (1:12-cr-299 LJO)
Jorge Alberto Torres, 28, of Bakersfield, was sentenced to three years and 10 months in prison for conspiring to cultivate, distribute and possess with intent to distribute 920 marijuana plants grown on a private ranch in Kern County without permission or knowledge of the landowner. According to court records, agents seized a loaded assault firearm and three pounds of processed marijuana. In sentencing Torres, U.S. District Judge Lawrence J. O’Neill also considered evidence that Torres had in the past been captured on trail cameras in the Sequoia National Forest making supply drops to another marijuana cultivation site in the Long Meadow Creek area in Tulare County. Upon completion of his prison term, Torres is subject to deportation to Mexico.
This case was the product of an investigation by the DEA, the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Kern County Sheriff’s Office.907 Marijuana Plants/Firearm Seized from Stanislaus County Riverside Grow
(Case No. 1:12-cr-342 AWI)Sengphachanh Boungnavong, 34, of Fresno, pleaded guilty to conspiring to cultivate, distribute and possess with intent to distribute 907 marijuana plants grown in rural Newman, beside the San Joaquin River. During the execution of a search warrant there, drug agents found Boungnavong at the cultivation site, and 907 marijuana plants, a handgun, respirators, motion detectors, chemicals, fertilizers, and purportedly medical marijuana recommendations from a doctor who has been charged in another federal case with the unlawful distribution of other controlled substances.
Boungnavong faces a maximum prison sentence of 20 years and a fine of up to $1 million. He is scheduled for sentencing on April 28, 2014. This case is the product of an investigation by the DEA and the Stanislaus Drug Enforcement Agency, a multi-agency drug task force in Modesto.
6,993 Marijuana Plants/Firearms Seized from Mariposa County Grow
(Case No. 1:13-cr-174 AWI-BAM)Salvador Gonzalez Farias (“Gonzalez”), 34, of Guerrero, Mexico, pleaded guilty to being an illegal alien in possession of a firearm seized from a rural residential parcel in Mariposa County where law enforcement officers located 6,993 marijuana plants. According to court documents, the grow site was located by Mariposa County Sheriff’s deputies responding to a call for suspected cockfighting. A follow-up search warrant resulted in the seizure of marijuana plants from indoor and outdoor locations on the property, along with two rifles.
Gonzalez is scheduled to be sentenced on April 14, 2014, by United States District Judge Anthony W. Ishii. He faces a maximum prison sentence of 10 years, a fine of up to $250,000, and deportation to Mexico upon completion of any prison term imposed. This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Mariposa County Sheriff’s Department.Both Gonzalez and Boungnavong’s actual sentences will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Assistant U.S. Attorney Karen A. Escobar is handling the above marijuana prosecutions.
Michigan Felon Sentenced to Federal Prison for Illegal Firearm PossessionRead the Press Release
HUNTINGTON, W.Va. – A 23-year-old Michigan felon who illegally possessed a firearm was sentenced today to two years and six months in federal prison followed by three years of supervised release, announced U.S. Attorney Booth Goodwin. Deandrew Fizer III, of Romulus, Michigan, pleaded guilty in October of 2013 to being a felon in possession of a firearm. Fizer was previously convicted of felonious assault in Wayne County Michigan in June of 2010.
On June 7, 2013, officers with the Huntington Police Department responded to a burglary in progress at Sycamore Street in Huntington. Police entered the residence and found Fizer in a bedroom with a .45 caliber pistol lying within his reach. Fizer, who was arrested, waived his Miranda rights and told police that he had possessed the firearm for approximately a week.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Huntington Police Department. Assistant United States Attorney Joseph F. Adams handled the prosecution.
The case was prosecuted 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.
Members of Oxycodone Distribution Ring Convicted in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WV - Five people were convicted in federal court this week for their roles in a cross-country prescription painkiller distribution ring.
DIANE SAVAGE, age 49, ALISHA LETTS, age 29, ROCQUE GARCIA, age 54, all of Moundsville, and JULIA JOSEPH, age 44, of Van Nuys, California, entered pleas of guilty this week to "Conspiracy to Distribute Oxycodone” before U.S. Magistrate Judge James Seibert. The acts in the conspiracy occurred over a period of three years and involved large quantities of pills being shipped from California to Moundsville via the U.S. Postal Service. The pills were then re-distributed in the Moundsville area by members of the conspiracy.
ROCCI WADE, 59, of Moundsville, was also part of the conspiracy and he was found guilty yesterday in federal court after a two-day jury trial. He was convicted of “Conspiracy to Possess with Intent to Distribute and to Distribute Oxycodone” and “Distribution of Oxycodone.”
SAVAGE, who is in custody, and LETTS, GARCIA and JOSEPH, who are on bond, pending sentencing face up to 20 years in prison. WADE is also in custody and he faces up to 40 years in prison. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of each defendant.
The matter was investigated by the Marshall County Drug Task Force and was prosecuted by Assistant U.S. Attorneys Randolph Bernard and Robert McWilliams.
In other matters this week in federal court, SOLOMON SIMS, age 57 of Wheeling, was sentenced to 21 months in prison and three years of supervised release for "Maintaining a Drug-Involved Residence" from November of 2012 to January 18, 2013, for the purpose of distributing heroin, crack cocaine and marijuana. SIMS was sentenced by Judge Frederick P. Stamp, Jr., and was remanded to the custody of the United States Marshal pending designation to a Federal institution.
CHARLES WILKES, age 28, of Wheeling, entered a plea of guilty before Judge Stamp to "Distribution of Crack Cocaine within 1,000 feet of the Heritage Port Playground." WILKES, who is in custody pending sentencing, faces up to 40 years in prison.
The SIMS and WILKES cases were prosecuted by Bernard and investigated by the Ohio Valley Drug Task Force, which is comprised of officers and agents from the West Virginia State Police-BCI, the Wheeling Police Department, the Ohio County Sheriff’s Department, and the Drug Enforcement Administration.
Finally, DANIEL JOSEPH NASCEMBENI, 71, of Petersburg, WV, appeared before
Chief Judge John Preston Bailey and entered pleas of guilty to "Mail Fraud" and "False Statement of Material Fact in Application for Social Security Income Benefits." NASCEMBENI, who is on bond, faces up to 20 years imprisonment and a $250,000 fine on the mail fraud charge and up to 5 years imprisonment and a $250,000 fine on the false statement charge. This matter was prosecuted by Assistant U.S. Attorney Stephen D. Warner and was investigated by the Social Security Administration and the West Virginia Department of Health and Human Resources.Marysville Woman Sentenced to Nine Years in Prison for Gun TraffickingRead the Press Release
A Snohomish County woman who led a ring of gun and drug traffickers was sentenced today in U.S. District Court in Seattle to nine years in prison and four years of supervised release for conspiracy to illegally deal in firearms, being a felon in possession of a firearm and distribution of methamphetamine, announced U.S. Attorney Jenny A. Durkan. HEATHER CHANCEY, a/k/a HEATHER LEE SLATER, 34, of Marysville, Washington was indicted in July 2013 along with three other members of a firearms trafficking ring. At sentencing, U.S. District Judge James L. Robart said that “the delivery of 49 firearms is an extraordinarily serious offense.”
“This defendant sold dozens of high powered firearms with no sales record and no concern about where these guns would end up,” said U.S. Attorney Jenny A. Durkan. “The sales were made in crowded parking lots and other locations with no security, no background checks and no protection for the public. One of our top priorities is to stop the illegal flow of guns into our communities.”
According to records in the case, on multiple occasions between October 2012 and January 2013, HEATHER CHANCEY and her coconspirators sold guns to an undercover law enforcement agent. Most of the sales occurred in the parking lot of the Tulalip Resort Casino in Marysville, Washington. Some of the sales occurred in other parking lots of businesses in Marysville or Arlington, Washington or at a Marysville residence. CHANCEY was prohibited from possessing firearms because of a 2001 conviction for methamphetamine possession. Some of the guns she possessed and sold in this case include: two sawed off shotguns and 13 regular shotguns – some with no visible serial numbers; 21 rifles – some with obliterated serial numbers; and four handguns. CHANCEY also sold methamphetamine to the undercover officer.
Two other defendants have already pleaded guilty: James Michaels was sentenced to 10 months in prison for conspiracy to unlawfully sell firearms. Mark Jenkins is scheduled to be sentenced for conspiracy to unlawfully sell firearms on February 24, 2014. Curtis Van Putten is scheduled for trial next week for conspiracy to sell firearms and being a felon in possession of a firearm.
This investigation was conducted by the Snohomish Regional Gang and Drug Task Force, the Seattle Police Department, and the FBI. During the investigation, those agencies were assisted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Snohomish County Violent Offender Task Force and the United States Marshal’s Violent Offender Task Force. The case is being prosecuted by Assistant United States Attorney Kate Crisham.Long Island Man Found Guilty in Manhattan Federal Court of Scheme to Defraud Insurance Companies by Intentionally Causing Dozens of Car CrashesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that MAXO JEAN was found guilty on Friday, January 31, 2014, by a jury in Manhattan federal court of conspiracy to commit mail, wire, and health care fraud for orchestrating and carrying out a multi-year scheme to intentionally cause more than 30 car crashes, obtain unnecessary medical treatment, and file fraudulent claims for insurance benefits. JEAN was convicted after a one-week trial before U.S. Court of Appeals Judge Denny Chin, sitting by designation. After JEAN’s conviction, Judge Chin remarked that he was “appalled at the level of corruption” involved in the scheme, and remanded JEAN into the custody of the United States Marshals.
According to the Indictment and the evidence presented at JEAN’s trial:
From 2007 through 2011, JEAN engaged in a scheme to cause more than 30 intentional car crashes in order to fraudulently obtain insurance benefits. JEAN orchestrated the scheme by finding cars, recruiting crews of drivers and passengers, and then sending the crews out to hit cars driven by innocent victims. JEAN paid the drivers and passengers he recruited, and directed them to crash into cars driven by innocent people so that the supposed “accidents” would appear to be real accidents. Following the crashes, JEAN took his recruits to corrupt medical clinics and directed them to submit to unnecessary treatment, including unnecessary surgeries, for their non-existent injuries, so that the treatments could be billed to car insurance companies. JEAN encouraged his recruits to submit to treatments that he thought were likely to result in the largest payments from insurance companies, such as unnecessary back and shoulder surgeries. JEAN and his recruits then filed fraudulent no-fault insurance claims and insurance claims that fraudulently alleged pain and suffering. He profited from the scheme by collecting more than $150,000 in insurance company payouts and in kickbacks from the corrupt medical clinics.
JEAN, 52, of West Hempstead, New York, was convicted of one count of conspiracy to commit mail, wire, and health care fraud. He faces a maximum penalty of twenty years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. JEAN is scheduled to be sentenced by Judge Chin on May 29, 2014, at 10:00 a.m.
Mr. Bharara praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Sarah E. Paul and Alexander J. Wilson are in charge of the prosecution.
U.S. v. Maxo Jean S1 Indictment
Local Woman Sentenced on Sex Trafficking ConspiracyRead the Press Release
St. Louis, MO -St. Louis, MO - CARLA MATHEWS was sentenced to 10 years in prison involving a conspiracy to commit sex trafficking of two area women by force and intimidation.
According to court documents, between 2010 and the October 2012, Carla Mathews and her co-defendant recruited and maintained women, physically assaulted them and forced them to engage in prostitution in the St. Louis metropolitan area. Mathews took the women to various hotels for commercial sex dates and kept the money generated by the victims for herself. She confiscated their food-stamp identification (EBT) cards to control them and deprive them of food and drink as a method of control. Mathews also provided the victims with the drug MDMA and clothing in preparation for the commercial sex dates she arranged for them.
Mathews, Breckenridge Hills, MO, pled guilty last October to conspiracy to commit sex trafficking by force, fraud or coercion. She appeared today for sentencing before United States District Judge Henry Autrey.
Co-defendant Carl Mathews, also of Breckenridge Hills, was sentenced to 10 years in prison in July 2013.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Agriculture Office of Investigations and the Breckenridge Hills Police Department.
Leader of $28.3 Million Medicare Fraud Scheme Pleads GuiltyRead the Press Release
A Florida man who had been the owner and operator of multiple physical therapy rehabilitation facilities pleaded guilty today for his role in organizing and leading a $28.3 million Medicare fraud scheme involving physical and occupational therapy services.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Acting U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office and Special Agent in Charge Christopher B. Dennis of the U.S. Health and Human Services Office of Inspector General (HHS-OIG) region including all of Florida made the announcement.
Luis Duluc, 53, formerly of southwest Florida, pleaded guilty in the U.S. District Court for the Middle District of Florida to conspiracy to commit health care fraud and making a false statement relating to health care matters. His sentencing date will be set by the court. He faces a maximum penalty of 15 years in prison.
According to documents filed in the case, Duluc and his co-conspirators used various physical therapy clinics and other business entities throughout Florida and elsewhere to submit approximately $28,347,065 in fraudulent reimbursement claims to Medicare from 2005 through 2009. Medicare paid approximately $14,424,865 on those claims.
Duluc was chairman and president of a Delaware holding company known as Ulysses Acquisitions Inc. Duluc and his co-conspirators used Ulysses Acquisitions to purchase comprehensive outpatient rehabilitation facilities (CORFs) and outpatient physical therapy providers (OPTs) including West Coast Rehab Inc. in Fort Myers, Fla.; Rehab Dynamics Inc. in Venice, Fla.; Polk Rehabilitation Inc. in Lake Wales, Fla.; and Renew Therapy Center of Port St. Lucie LLC in Port St. Lucie, Fla., in order to gain control of these clinics’ Medicare provider numbers.
Working with co-conspirators in Miami and elsewhere, Duluc obtained identifying information of Medicare beneficiaries by paying kickbacks and stealing beneficiaries’ identifying information. Duluc and his co-conspirators also obtained unique identifying information of physicians. They then used this information to create and submit false claims to Medicare through the clinics Ulysses Acquisitions purchased. These claims sought reimbursement for therapy services that were not legitimately prescribed and not actually provided. The conspirators created and used false and forged patient records in an effort to conceal the fact that services had not actually been provided.
Part of the conspiracy included what came to be known as the 80/20 deal, which Duluc developed and marketed. The 80/20 deal involved extensive kickback arrangements with co-conspirators who owned other therapy clinics that were used to further the overall fraud scheme. For example, Duluc and co-conspirators used the clinics they controlled to submit false reimbursement claims to Medicare on behalf of Miami-based therapy clinics such as Hallandale Rehabilitation Inc., Tropical Physical Therapy Corporation, American Wellness Centers Inc., and West Regional Center Inc. Duluc and co-conspirators would retain approximately 20 percent of the money Medicare paid on these claims and pay the other 80 per cent of the fraud proceeds to the co-conspirator clinic owners.
When Duluc and his co-conspirators were done using the clinics they acquired through Ulysses Acquisitions, they engaged in sham sales of the clinics to nominee or straw owners, all of whom were recent immigrants to the United States who had no background or experience in the health care industry. Duluc did this in an effort to try to disassociate himself from the fraudulent operations of the rehabilitation facilities.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida. This case is being prosecuted by Trial Attorneys Christopher J. Hunter and Andrew H. Warren of the Criminal Division’s Fraud Section and Assistant United States Attorney Simon A. Gaugush of the U.S. Attorney’s Office for the Middle District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov .Las Vegas Attorney Pleads Guilty <br /> for Role in Multimillion-Dollar FraudRead the Press Release
A Las Vegas attorney pleaded guilty today for his role in multiple schemes to defraud his clients, to defraud the IRS and to fraudulently gain control of condominium homeowners’ associations (HOAs) in the Las Vegas area to ensure that the HOAs would steer business to a certain law firm and a certain construction company.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Special Agent in Charge Laura Bucheit of the FBI’s Las Vegas Field Office, Sheriff Doug Gillespie of the Las Vegas Metropolitan Police Department and Acting Special Agent in Charge Shea Jones of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
Barry Levinson, 47, pleaded guilty before U.S. District Judge James C. Mahan in the District of Nevada to one count of conspiracy to commit mail and wire fraud. Levinson is the 30th person to plead guilty in connection with the scheme to defraud HOAs in the Las Vegas area. Levinson simultaneously pleaded guilty to one count of tax evasion and one count of wire fraud, with the latter charge relating to his embezzlement of his legal clients’ funds.
Levinson admitted that from approximately August 2003 through February 2009, he participated in a scheme to control various HOA boards of directors so that the HOA boards would award the handling of construction-related lawsuits and remedial construction contracts to his law firm and construction company designated by Levinson’s co-conspirators. This scheme was carried out in part by straw buyers who purchased properties in their names that were in reality paid for and controlled by other co-conspirators. According to plea documents, Levinson’s co-conspirators managed and operated the payments associated with maintaining straw properties by running a so-called “Bill Pay Program,” by which co-conspirators funded the properties through several limited liability companies at the direction of a co-conspirator. Many of the payments were wired from California to Nevada.
Levinson admitted that he was hired to represent the Park Avenue condominium complex, but he treated a co-conspirator as his client rather than the HOA itself. Levinson also admitted that several of his co-conspirators rigged an HOA board election at Park Avenue. Levinson admitted that, after a lawsuit was filed by the homeowners and a special election master was designated for the make-up election, he attempted to bribe the special election master.
Similarly, Levinson admitted that after a rigged election at the Pebble Creek HOA, the homeowners filed a recall petition. Levinson was hired as the HOA general counsel at the direction of a co-conspirator and took several steps to deter the recall election, including firing the property management company and filing a lawsuit to stop the recall election.
Related to the tax evasion charge, Levinson admitted that he failed to file taxes for the 2005 to 2010 tax years and filed a false 2011 tax return. Levinson also admitted that he took affirmative steps to evade taxes for the tax years 2009, 2010 and 2011, including concealing cash earnings from the IRS and telling the IRS that his business was no longer operating.
Finally, related to the wire fraud charge, Levinson admitted that between March 2010 and September 2011, he embezzled nearly $180,000 from at least nine different minor personal injury clients. Levinson also admitted that he stole another $65,000 from an individual for whom he was serving as an escrow agent.
As part of the plea agreement, Levinson has agreed to be disbarred by the State Bar of Nevada.
Levinson’s sentencing is scheduled for May 5, 2014. The maximum sentence for conspiracy to commit mail fraud and wire fraud is 30 years in prison. The maximum sentence for attempting to evade or defeat federal taxes is five years in prison. The maximum penalty for wire fraud is 20 years in prison.
The case is being investigated by the FBI, IRS-CI and the Las Vegas Metropolitan Police Department, Criminal Intelligence Section.
The case is being prosecuted by Deputy Chief Charles La Bella, Senior Deputy Chief for Litigation Kathleen McGovern and Trial Attorneys Thomas B.W. Hall and Alison Anderson of the Criminal Division’s Fraud Section. The Department also thanks former Trial Attorneys Mary Ann McCarthy and Nicole Sprinzen for their efforts in prosecuting the case.Laguna Pueblo Man Pleads Guilty to Domestic Assault by a Habitual Offender ChargeRead the Press Release
ALBUQUERQUE – Miles J. Riley, 32, pleaded guilty this morning to a domestic assault by a habitual offender charge, announced Acting U.S. Attorney Steven C. Yarbrough and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.
Riley, a member of the Pueblo of Laguna who resides in Mesita, N.M., was arrested on Nov. 29, 2013, based on a criminal complaint alleging that he assaulted his intimate partner, a Laguna Pueblo woman, by striking her on the face on Aug. 25, 2013. Riley subsequently was indicted and charged with domestic assault by a habitual offender based on his two prior domestic violence convictions in the Pueblo of Laguna Tribal Court.
This morning, Riley pled guilty to the indictment and admitted assaulting the victim, his intimate partner, by striking her in the face multiple times with a closed fist on Aug. 25, 2013, in a location within the Pueblo of Laguna.
Court records reflect that Riley previously was convicted on domestic violence charges before the Pueblo of Laguna Tribal Court in 2012 and 2013.
Riley has been in federal custody since his arrest and and will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Riley faces a maximum sentence of ten years in federal prison.
This case was investigated by the Laguna/Acoma Agency of BIA’s Office of Justice Services and the Pueblo of Laguna Police Department and is being prosecuted by Special Assistant U.S. Attorney David Adams. It was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Kings Santy Pleads Guilty to Operating Illegal Gambling BusinessRead the Press Release
BOISE – Kings Daniel Santy, 44, of Meridian, Idaho, pleaded guilty today to one count of operating an illegal gambling business, U.S. Attorney Wendy J. Olson announced. Santy appeared today before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
At his change of plea hearing, Santy admitted to being the owner and operator of two illegal gambling businesses, one in Boise and the other in Nampa. Santy admitted that the poker games had been or remained in substantially continuous operation for over six years; the games involved five or more persons who conducted, financed, managed, supervised, directed or owned all or part of the illegal gambling businesses; had gross revenue of more than $2,000 or more on any single day; and were operated in violation of Idaho state law. As part of his agreement, Santy will forfeit $16,262.87 in seized U.S. currency and an additional $100,000 in U.S. currency, proceeds of his illegal gambling business.
Santy faces up to five years in prison, a maximum fine of $250,000, and not more than three years of supervised release. Sentencing is set for April 21, 2014, before U.S. District Judge Edward J. Lodge.
This case was investigated by the Treasure Valley Metro Violent Crime Task Force. The task force is comprised of federal, state, and local agencies, including the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, Canyon County Sheriff’s Office, and the Idaho Department of Correction. The Metro Task Fork was assisted by Internal Revenue Service-Criminal Investigation.
Kentucky Man Sentenced to Federal Prison for Tax FraudRead the Press Release
Defendant cheated the IRS out of nearly $250,000
Huntington, W.Va. – Christopher Hutchinson of Ashland, Kentucky, was sentenced today to federal prison and ordered to make full restitution for failing to pay nearly $250,00 in federal employment taxes, United States Attorney Booth Goodwin announced. Hutchinson owned and operated at least ten different electrical and security businesses from 1990 to 2012 in the Huntington, West Virginia and Ashland, Kentucky areas, including Peck Security Systems and ICE Electrical Company. As an employer, Hutchinson was required to collect taxes from the wages of his employees and pay those taxes to the Internal Revenue Service. Hutchinson pleaded guilty on October 15, 2013.
The Internal Revenue Service conducted the investigation. Assistant United States Attorney Erik S. Goes handled the prosecution, assisted by Charles Edgar with the United States Department of Justice, Tax Division. The sentence was imposed by United States District Judge Robert Chambers.
Jackson County Man Sentenced to 25 Year for 15-kilo Meth Conspiracy, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jackson County, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine, a money-laundering conspiracy, and illegally possessing a firearm.
Ronald Wayne Ivy, also known as “Wayno” or “Big Homie,” 41, of Jackson County, was sentenced by U.S. Chief District Judge Greg Kays to 25 years in prison without parole. The court also ordered Ivy to forfeit to the government $211,200, which represents the proceeds of the drug-trafficking conspiracy (based on a conservative street price of $1,200 an ounce and distribution of at least 15 kilos of methamphetamine through the overall conspiracy). The forfeiture includes approximately $30,000 that was seized at Ivy’s residence by law enforcement officers.
On Nov. 4, 2013, Ivy pleaded guilty to conspiracy to distribute 500 grams or more of methamphetamine from Jan. 1, 2009, to Dec. 11, 2012, conspiracy to commit money laundering and possessing a firearm in furtherance of a drug-trafficking crime.
Law enforcement officers were investigating a drug-trafficking organization that was distributing methamphetamine in the metropolitan area. Officers made undercover drug purchases from some mid-level distributors, who obtained methamphetamine from Ivy.
Ivy was arrested in April 2012 in possession of more than 500 grams of methamphetamine. Co-conspirators were arrested in July 2012 after leaving the area of Ivy’s residence; they were in possession of approximately three grams of methamphetamine that they obtained from Ivy. According to the plea agreement, regular purchases of this amount (“eight-ball” – 1/8 of an ounce) were conducted at Ivy’s residence and other locations with Ivy.
Law enforcement officers executed a search warrant at Ivy’s residence on Aug. 20, 2012. Officers seized more than $30,000, multiple firearms and more than 500 grams of methamphetamine.
This case was prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Jackson County Drug Task Force, the Independence, Mo., Police Department and the Drug Enforcement Administration.Internet Child Sexual Predator Enters Guilty PleaRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that John David Przenkop, age 47, of Columbus, Georgia, appeared in federal court on Monday, February 3, 2014 and entered a guilty plea to transportation of minors with intent to engage in criminal sexual activity. The guilty plea was entered before the Honorable Clay D. Land, U.S. District Court Judge, in Columbus, Georgia.As a part of his guilty plea, Mr. Przenkop admitted that on or about February 18/19, 2010, he enticed two minor females, ages fourteen (14) and fifteen (15), with promises of gifts, a shopping spree and dinner in exchange for sex. Mr. Przenkop made contact with the two minor victims via the social media site, MySpace. Mr. Przenkop transported the two minor victims from Phenix City, Alabama to his residence in Columbus, Georgia. While at his residence, Mr. Pzenkop engaged in sexual conduct with both minor victims which he also video-recorded. A search of Mr. Przenkop’s residence uncovered video recordings of the sexual encounters with the two minor females.
Mr. Przenkop faces a mandatory minimum sentence of ten (10) years imprisonment up to life in prison and a maximum fine of $250,000.00, or both. The Court has scheduled sentencing for April 29, 2014 in Columbus, Georgia.
The case was investigated by the Federal Bureau of Investigation and the Columbus Police Department. Assistant U.S. Attorney Michael T. Solis is prosecuting the case.
US Attorney Michael Moore stated, “The prosecution of this form of human trafficking that preys on vulnerable victims is a priority of my office and of the United States Department of Justice”.Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s guilty plea removes a dangerous individual from our streets. Mr. Przenkop preyed upon the vulnerabilities of these minor children in a manner that society simply will not tolerate. The FBI asks that anyone with information regarding such incidents of child exploitation contact their nearest FBI field office”.
For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Intelligence Specialist at Southern Command Charged with Accepting Bribes and Helping Steal Purported Drug ProceedsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida and Michael Steinbach, Special Agent in Charge, Federal Bureau of Investigation announce the filing of a criminal complaint charging defendant Jose Emmanuel Torres, 37, of Cooper City, with federal bribery, in violation of 18 U.S.C. §201(b)(2)(A) and (B); exceeding authorized access to a government computer, in violation of 18 U.S.C. §1030(a)(2)(B) and (c)(2)(B)(i) and (ii) and 18 U.S.C. §2; and, extortion under color of official right, in violation of 18 U.S.C. §1951.
Torres, who was arrested on Friday, made his initial appearance today before U.S. Magistrate Judge Patrick Hunt in Fort Lauderdale.
According to the criminal complaint, Torres is currently assigned as an Intelligence Specialist to the United States Marine Corps Forces, South, under the United States Southern Command. From approximately January 2012 through December 13, 2013, Torres was assigned to the Department of Defense, Defense Intelligence Agency (DIA). As part of his official duties with the DIA, Torres worked with agents from Department of Homeland Security, Immigration and Customs Enforcement, and the Drug Enforcement Agency (DEA) collecting intelligence regarding persons who were allegedly involved in terrorism and drug trafficking. During the course of his duties with DIA, Torres had interviewed an individual who was attempting to gain legal residence status in the United States and had provided Torres and other agents of the United States with information regarding persons involved in drug trafficking and terrorism. The individual had been periodically arrested on immigration violations. In August 2013, Torres told the individual that he had used his influence to have the individual arrested on immigration charges. In or about September 2013, Torres complained to the individual that he was having financial problems, and that he was not making enough money as a United States Marine. Torres asked the individual for $10,000. The individual understood that, if he did not give Torres the money, Torres could use his influence to have the individual arrested again. The individual then reported this matter to law enforcement and the FBI began recording text messages, telephone and Skype calls between Torres and the cooperating individual (the CI). Torres continued to ask for the $10,000 and promised that the CI would not go back to jail even if he [Torres] had to put his “neck on the line.” In November 2013 the CI, under the supervision of law enforcement agents, paid Torres $6,000 in order for Torres to use his influence to assist the CI with the CI’s immigration proceedings.
During the course of the relationship between Torres and the CI, Torres asked the CI if he had drug trafficking contacts in Costa Rica and Miami because he [Torres] was looking to conduct a robbery of a delivery of drug money or identify a stash house where drug money was stored. Initially, Torres told the CI that he [Torres] was willing to participate in the robbery and that he [Torres] has some trustworthy individuals to assist him with the robbery. Between November 2013 and January 2014, Torres communicated with the CI regarding the robbery by way of text, telephone, Skype and a “secret” email account used by Torres. Communications included Torres sending information that Torres had obtained from law enforcement databases regarding two individuals that the CI indicated would assist the CI in the robbery. Ultimately, under the direction of law enforcement agents, the CI told Torres that the CI had the opportunity to steal drug proceeds totaling $500,000 that was being transported in a car. The CI told Torres that the CI needed a law enforcement receipt so that the CI could represent to the owners of the purported drug money that the funds had been seized by law enforcement. On January 29, 2014, Torres provided the CI a detailed four-page DEA seizure form dated January 31, 2014, reflecting a bulk cash seizure by DEA agents in the amount of $500,000. The CI told Torres that he [Torres] would receive $250,000 from the money stolen from the drug dealers for providing the receipt. On January 31, 2014, the CI called Torres to tell him that the CI was in possession of the drug proceeds and they arranged a meeting for the purpose of providing Torres with his $250,000. On that same date, the CI and Torres met in a parking lot in Dania, Florida, and Torres was given a duffel bag which purportedly contained $250,000 of drug proceeds. Torres was arrested after taking possession of the duffel bag.
If convicted, Torres faces a statutory maximum term of 40 years in prison and a fine of the greater of $250,000 or three times the money received.
Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer would also like to thank the Drug Enforcement Administration and the United States Secret Service for their assistance. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
A complaint is only an accusation and a defendant is presumed innocent until proven guilty.
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.
Huntington Man Sentenced to Federal Prison for Illegal Prescription DrugsRead the Press Release
HUNTINGTON, W.Va. – A Huntington pill dealer was sentenced today to one year and nine months in federal prison followed by three years of supervised release, U.S. Attorney Booth Goodwin announced. Eric Lavell Minter, 28, of Huntington, previously pleaded guilty in October of 2013 to possession of oxycodone with intent to distribute. On May 20, 2013, agents with the Drug Enforcement Administration Task Force found Minter in a parked car at the Greyhound Bus Station in Huntington, with a plastic baggie in his lap counting oxycodone tablets. Minter was arrested and gave a statement to police admitting that he was involved in the distribution of pills in the Huntington area.
The Drug Enforcement Administration and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by Chief United States District Judge Robert C. Chambers.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Huntington Man Pleads Guilty to Major Federal Heroin ChargeRead the Press Release
Dealer busted with more than a kilo of heroin, hundreds of Rx pills; faces at least 10 years in federal prison
Huntington, W.Va. – United States Attorney Booth Goodwin announced today that Alvester Thomas pleaded guilty to possession with intent to distribute 1000 grams or more of heroin. Agents with the Huntington Violent Crime and Drug Task Force found the heroin in a safe inside the home that Thomas shared with Kristen Michelle Graley at 3008 Rear Third Avenue, Huntington, West Virginia. Graley has pleaded guilty to related drug charges. Thomas admitted that the heroin was his and that he intended to sell it in the Huntington area. In addition to the heroin, agents seized 545 oxycodone pills, 73 oxymorphone pills, additional amounts of heroin in the living room of the home, and approximately three pounds of marijuana. Agents also recovered a gun from the kitchen of the home and approximately $17,230 in United States currency.
Thomas faces 10 years to life imprisonment and a $10,000,000 fine. He is scheduled to be sentenced on May 9, 2014, by the Honorable Robert C. Chambers.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District. Assistant United States Attorney Greg McVey is responsible for the prosecution.Hancock Man Sentenced to Five Years for Manufacturing MethamphetamineRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that today Michael Wood, 46, of Hancock, was sentenced by United States District Judge William K. Sessions III to sixty months imprisonment on his guilty plea to a charge of conspiracy to manufacture and distribute five grams or more of methamphetamine. Judge Sessions also ordered Wood to serve four years supervised release after his incarceration ends.
According to court documents, Wood manufactured and distributed methamphetamine at his residence in Hancock during fall 2012. In November 2012, the Vermont Drug Task Force (VDTF) made controlled purchases of methamphetamine from Wood. On November 20, 2012, the VDTF executed a search warrant at the residence, seizing evidence of methamphetamine production. Wood was arrested on that date and charged initially in Addison County Superior Court by the Vermont Attorney General=s Office. The state charges were dismissed after a federal grand jury returned the indictment. At the sentencing hearing the court determined that Wood had manufactured twenty to thirty-five grams of methamphetamine. Wood has been detained since his arrest.
United States Attorney Tristram J. Coffin commended the investigation into methamphetamine production by the VDTF and thanked the Vermont Attorney General's Office for its assistance and cooperation. Federal Defender Michael Desautels represented Wood. The case was prosecuted by Assistant U.S. Attorney Craig Nolan.
Grand Rapids Man Who Sold Gun Used in Mass Murder Sentenced to the Statutory Maximum Term of Ten YearsRead the Press Release
GRAND RAPIDS, MICHIGAN – Michael James Allen, of Grand Rapids, Michigan, has been sentenced today to ten years (120 months) in prison – the statutory maximum – for his role in transferring a Glock 9mm semiautomatic pistol to multi-convicted felon Roderic Dantzler, who used it to kill seven people. Allen previously pled guilty to being a felon in possession of that pistol, as he was also a convicted felon and prohibited from possessing any firearm. During his plea hearing, Allen admitted to selling the Glock pistol to Dantzler. In sentencing Allen, Chief U.S. District Judge Paul Maloney commented that “the wreckage of Mr. Allen’s actions is unspeakable,” noting that Allen knew Dantzler was dangerous and unstable.
On July 7, 2011, Dantzler used the Glock 9mm semiautomatic pistol to kill his wife, his twelve-year-old daughter, his mother and father-in-law, a former girlfriend, that girlfriend’s sister, and her ten-year-old daughter. Dantzler also shot at the driver of another vehicle during a road-rage incident; he attempted to kill police officers; he fled from the police at high rates of speed; and he kidnapped three hostages before taking his own life – leaving the total death toll at eight.
That same day, the Grand Rapids Police Department (GRPD) contacted the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for assistance in determining who was responsible for providing that Glock pistol to Dantzler. A two-year federal investigation ensued, leading to the convictions of three individuals, including Allen, each of whom illegally possessed the Glock pistol and transferred it to a known convicted felon.
Joseph Krul, a convicted felon and admitted drug dealer, was sentenced on October 25, 2013, to 63 months’ imprisonment for his role in this case. A third individual, who cooperated in the investigation and who played a key role in the successful prosecution of Allen was allowed to plead to a state charge of being a felon in possession of the Glock pistol. The cooperator wore a wire during two meetings with Allen in which he recorded incriminating statements Allen made, including threats to kill cooperating witnesses. At one point, Allen stated: “It’s hard to testify against someone when you’re dead.”
U.S. Attorney Patrick Miles underscored the seriousness of the offense, noting that this case illustrates the need to prevent the illegal trafficking in firearms. “This was a tragedy that was entirely avoidable. Selling a semiautomatic pistol to Dantzler was like lighting a match to a powder keg. Bringing those to justice who provided Dantzler that firearm required great individual efforts by members of the GRPD and ATF in a lengthy and thorough joint investigation. It is our hope that this community and the victims’ family members find some measure of solace and closure from that effort and this outcome.”
“Michael Allen put a firearm into the hands of a violent criminal,” said ATF Special Agent in Charge Steven Bogdalek. “Although the defendant didn’t shoot any of victims killed by Roderick Dantzler, he willingly provided the handgun that was used to commit heinous acts of violence.”
GRPD Captain Jeffrey Hertel added that he is “hopeful that the disposition of the Michael Allen case provides more answers to the families that lost loved ones that fateful day. The intensive investigation represents the strong partnership between the ATF and the Grand Rapids Police Department. The investigation was possible because of the continued commitment to safety in our neighborhoods by the U.S. Attorney’s Office.”
END
Georgia Man Second to Plead Guilty in Bank Fraud and Identity Theft SchemeRead the Press Release
RICHMOND, Va. – Jacquis Depree Nelson, 32, of Atlanta, Georgia, pleaded guilty today to conspiracy to commit bank fraud and aggravated identity theft.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; and William G. Frantzen, Special Agent in Charge of the United States Secret Service’s Richmond Field Office, made the announcement after the plea was accepted by United States Magistrate Judge David J. Novak.
Nelson was indicted on November 5, 2013, by a federal grand jury on conspiracy to commit bank fraud and aggravated identity theft charges. Nelson faces a maximum penalty of thirty years’ imprisonment for the bank fraud conspiracy offense and a mandatory consecutive sentence of two years’ imprisonment for the aggravated identity theft offense when he is sentenced on May 1, 2014, by Senior United States District Judge Robert E. Payne.
In a statement of facts filed with the plea agreement, Nelson admitted to participating in a conspiracy involving the unauthorized withdrawal of hundreds of thousands of dollars from accounts held at Wells Fargo Bank. Members of the conspiracy created false forms of identification for several real Wells Fargo accountholders, using personal identifying information obtained without lawful authority. Nelson and his co-conspirators traveled from Georgia and other locations to bank branches in Virginia and South Carolina, where they posed as the individual accountholders. Using customer account information and the false forms of identification, Nelson and his co-conspirators withdrew over $260,000 from numerous Wells Fargo accounts between November 2012 and January 2013. The co-conspirators divided the stolen proceeds among themselves following the withdrawals.
Nelson’s co-conspirator, Anthony Romey Carter, of Elk Grove, California, previously pled guilty and was sentenced on August 8, 2013, to 61 months’ imprisonment for his role in the scheme.
This case was investigated by the United States Secret Service. Assistant United States Attorneys Dominick S. Gerace and Michael Gill are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Fresno Man Admits Possessing Machine Gun Stolen from Fort IrwinRead the Press Release
FRESNO, Calif. — Mark Anthony Carballo, 37, of Fresno, pleaded guilty today to being a felon in possession of a firearm after a fully automatic AK-74 machine gun, which had been stolen from Fort Irwin, and a short-barreled shotgun were found in his vehicle, United States Attorney Benjamin B. Wagner announced.
On July 15, 2011, 26 fully automatic AK-74 machine guns were stolen from the Fort Irwin military base; the investigation into the theft has recovered 14 machine guns so far.
According to court documents, on June 20, 2012, the stolen machine gun and sawed-off shotgun were discovered in the trunk of a vehicle that was repossessed from Carballo. Agents searched his girlfriend’s apartment with her consent after Carballo had said that there was a gun in the apartment. Agents found a Bersa Model Thunder 380, .380-caliber pistol inside of a backpack that also had 18 rounds of .380-caliber ammunition and a round of 5.45 ammunition for an AK-74.
“Criminals who unlawfully possess machine guns will gain ATF’s full attention,“ said Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Joseph M. Riehl. “Due to ATF’s diligence and hard work, we are very fortunate to recover a significant amount of fire power from these criminals before they were used to threaten the safety of others.”
This case is the product of an investigation by ATF with assistance from the Clovis and Fresno police departments and the US Marshals Service. Assistant United States Attorney Kimberly A. Sanchez is prosecuting the case.
In a related case, 13 defendants have pleaded guilty to either possession of one of the stolen machines, concealing a felony, or making false statements to a federal law enforcement officer. Eleven defendants received prison sentences ranging from six months to four years. Two defendants were sentenced to terms of probation for concealment of a felony. The U.S. Army soldiers accused of conspiring to steal the weapons from Fort Irwin were convicted under the Uniform Code of Military Justice.
Carballo is scheduled to be sentenced by Judge Lawrence J. O'Neill on May 12, 2014. Carballo faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing
Former Mount Sinai Medical Center Temporary Employee Sentenced in Identity Theft Tax Refund Scheme Involving the Theft of Patient InformationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Steven Steinberg, Chief, Aventura Police Department, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Thomas Caul, Special Agent in Charge, U.S. Social Security Administration, Office of Inspector General (SSA-OIG), announce that defendant Oliver Gayle, 43, of Miami, was sentenced to 51 months in prison, followed by two years of supervised release for his participation in an identity theft tax refund scheme involving the theft of patient information.
On October 23, 2013, a federal jury found Oliver Gayle guilty of one count of possession of 15 or more unauthorized access devices, that is, debit cards and social security numbers of other persons with corresponding names and dates of birth, in violation of Title 18, United States Code, Sections 1029 (a)(3) and 2; three counts of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2; and one count of possessing, using and attempting to use a U.S. visa knowing it to be forged, counterfeited altered and falsely made, in violation of Title 18, United States Code, Section 1546 (a).
According to testimony and evidence presented at trial, on February 27, 2013, the Aventura Police Department stopped a vehicle driven by Gayle. During an inventory search of the vehicle driven by Gayle, officers uncovered a black bag containing over 100 printouts from Mt. Sinai Medical Center Account Inquiry Processor with multiple names, dates of birth, social security numbers, and addresses of patients on each printout. Additionally, photocopies of checks written to Mt. Sinai Medical Center from various individuals with a photocopy of the corresponding billing statement from Mt. Sinai were found in the bag.
According to court documents and trial testimony, during a consensual search of Gayle's residence, law enforcement found multiple printouts from Mt. Sinai Medical Center that appeared similar to the ones found in his black bag. Law enforcement also found copies of U.S. Treasury checks; a document labeled “HIT LIST” with a list of names, Social Security numbers and dates of birth; several tax returns in the names of other individuals; multiple Tax Act and Turbo Tax pre-paid debit cards issued in the names of other individuals; a Jamaican passport in Gayle's name containing a counterfeit U.S. visa; and, an identification badge for Mt. Sinai Medical Center with Gayle’s name and photo.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the IRS-CI, Aventura Police Department, ICE-HSI and SSA-OIG. The case is being prosecuted by Assistant U.S. Attorneys Elina A. Rubin-Smith and Michael J. Garofola.
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.
Former Alabama KKK Leader Pleads Guilty to Cross Burning and Obstruction of JusticeRead the Press Release
Steven Joshua Dinkle, 28, former Exalted Cyclops of the Ozark, Ala., chapter of the International Keystone Knights of the Ku Klux Klan (KKK), pleaded guilty in federal court today to hate crime and obstruction of justice charges for his role in a 2009 cross burning, the Justice Department and the U.S. Attorney’s Office for the Middle District of Alabama announced.
According to documents filed with the court, Dinkle and one of his KKK recruits, Thomas Windell Smith, met at Dinkle’s home on May 8, 2009, and decided to burn a cross in a local African-American neighborhood.
Dinkle constructed a wooden cross about six feet tall, wrapped jeans and a towel around it to make it more flammable and loaded it into Smith’s truck. Around 8:00 p.m., Dinkle and Smith drove to an African-American neighborhood in Ozark. Dinkle unloaded the cross at the entrance to the community and dug a hole in the ground, then poured fuel on the cross, stood it up in the hole in view of several houses and set it on fire. Dinkle and Smith then drove away.
When questioned by local investigators, Dinkle falsely denied his involvement in the incident and stated that he had resigned his office and withdrawn from the KKK months before the cross burning. When approached by the FBI, Dinkle again lied and told a special agent that he had been at home with his girlfriend when the cross burning occurred. He further claimed that he did not know one of his superiors in the KKK at the time of the cross burning. During the plea hearing, Dinkle admitted that in burning the cross, he intended to scare and intimidate residents of the African-American community by threatening the use of force against them. He further admitted that he burned the cross because of the victims’ race and color and because they were occupying homes in that area.
Dinkle pleaded guilty to one count of conspiracy to violate housing rights, one count of criminal interference with the right to fair housing and two counts of obstruction of justice.
Dinkle faces a statutory maximum sentence of 10 years in prison and a $250,000 maximum fine on the conspiracy and criminal interference counts and a statutory maximum sentence of 25 years in prison and a $500,000 maximum fine for obstructing justice by making false statements to both local investigators and federal agents. Sentencing for Dinkle has not yet been scheduled.
Dinkle’s co-conspirator, Smith, pleaded guilty to one count of conspiracy to violate housing rights in December 2013. He is scheduled to be sentenced on March 11, 2014.
“By targeting the victims with a blazing cross in the night, one of the most threatening racial symbols in our nation’s history, the defendant attempted to terrorize a neighborhood because of the color of the residents’ skin,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “Prosecuting these racially motivated crimes will continue to be a priority for the Department of Justice.”
“ As a society we hope to never see this type of hate,” said U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. “We will continue to prosecute those that commit these horrible acts of hate to the fullest extent of the law.”
This case was investigated by the FBI, with the assistance of the Dale County Sheriff’s Office and the Ozark Police Department. The case is being prosecuted by Assistant U.S. Attorney Jerusha T. Adams of the Middle District of Alabama and Trial Attorney Chiraag Bains of the Civil Rights Division.
Five Indicted in Sex Trafficking ConspiracyRead the Press Release
Allegedly Prostituted a 14 Year Old Female
Baltimore, Maryland - A federal grand jury has indicted five individuals in a sex trafficking conspiracy. The following defendants are charged in the indictment:
Kenneth Ronald Robinson, a/k/a “Kenny” and “Keith,” age 52, of Baltimore, Maryland; Eric Evans, a/k/a “E,” age 38, of Baltimore; Jeffrey Clark, a/k/a “cripple on a Budget,” age 43, of Nottingham, Maryland; Craig Judy, age 29, of Baltimore; and
Cheralyn Crawford, a/k/a “Rachel,” age 25, of Baltimore.The superseding indictment, which adds Evans as a defendant, was returned on January 28, 2014, and unsealed today upon Evans’ arrest. The original indictment against Robinson, Clark, Judy and Crawford was returned on October 1, 2013.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Baltimore County State’s Attorney Scott Shellenberger.
The two count indictment alleges that from May 12 through June 17, 2013, the defendants recruited, transported, and received money by having a minor female, born in 1999, engage in commercial sex acts. The defendants instructed the victim on pricing for the different sexual activities. The defendants are also alleged to have taken photographs of the minor victim in sexually explicit poses and posted those photos in advertisements on an internet website to advertise her prostitution services. The defendants transported the minor victim to motels in the Towson, Maryland, area, where she was directed to meet with commercial sex customers to engage in prostitution.
The defendants face a maximum sentence of life in prison. An initial appearance has been scheduled at 2:45 p.m. for Evans in U.S. District Court in Baltimore. The remaining defendants had their initial appearances in October 2013. Robinson, Clark and Judy are detained and Crawford is released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, Maryland State Police and the Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Ayn B. Ducao and Rachel M. Yasser, who are prosecuting the case.
Ferriday Man Sentenced to 200 Months for Part in Cocaine ConspiracyRead the Press Release
ALEXANDRIA, La. –United States Attorney Stephanie A. Finley announced today that Xavier L. Green, 26, of Ferriday, La., was sentenced late Friday afternoon by U.S. District Judge Dee D. Drell, to 140 months in prison for conspiracy to possess with intent to distribute cocaine and 60 months in prison for possession of a firearm in furtherance of a drug trafficking crime. He was also sentenced to three years of supervised release. Green pleaded guilty on October 11, 2013.
According to evidence presented at the guilty plea, from November 2011 to December 2011, authorities intercepted communications between Green and another defendant discussing the sale of crack cocaine and making purchases. On February 1, 2012, authorities were approaching a crowd on Alabama Avenue in Ferriday when they observed Green flee a home from across the street. They gave chase, and Green dropped and discarded a .357 caliber handgun and bags containing drugs. After capturing Green, authorities found more than $1,000 and more suspected narcotics.
Green was one in a group of individuals who sold cocaine, crack cocaine and marijuana in the Ferriday area. Green’s co-defendants were prosecuted and sentenced as follows:
Efuante Morales, 28, pleaded guilty September, 25, 2013, to conspiracy to possess with intent to distribute cocaine and was sentenced January 3, 2014 to 120 months in prison and five years of supervised release.
Wilbert Henderson, 35, pleaded guilty September 12, 2013, to conspiracy to possess with intent to distribute cocaine and was sentenced December 12, 2013 to 70 months in prison and five years of supervised release. He was also ordered to pay a $4,500 fine.
Marquise Poole, 31, pleaded guilty July 18, 2012, to conspiracy to possess with intent to distribute cocaine and was sentenced March 22, 2013 to 66 months in prison and five years of supervised release. He was also ordered to pay a $2,900 fine.
Ronathan Quinn, 41, pleaded guilty September 24, 2013, to conspiracy to possess with intent to distribute cocaine and was sentenced December 12, 2013 to 99 months in prison and 10 years of supervised release.
Frederick Saulsberry, 30, pleaded guilty July 10, 2013, to use of a communication facility and was sentenced October 28, 2013 to one year in prison and one year of supervised release.
Green and his co-defendants were arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation “Delta Blues” investigation. The Federal Bureau of Investigation Central Louisiana Safe Streets Task Force, which is composed of the Louisiana State Police, Louisiana Department of Probation and Parole, Rapides Parish Sheriff’s Office and the Alexandria Police Department, participated in the investigation. The U.S. Marshals and the Concordia Parish Sheriff’s Office also participated in the investigation. Assistant U.S. Attorney James G. Cowles Jr. is prosecuting the case.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.Federal-State Partnership Yields Two More Convictions, Three Indictments in Tipton CountyRead the Press Release
Memphis, TN – The teamwork between the offices of District Attorney General Mike Dunavant and United States Attorney Edward L. Stanton III continues to pay dividends to the citizens of the 25th Judicial District.
Recently, Richard Dewalt, 30, of Gates, TN, was sentenced to 50 months in federal prison by U.S. District Judge Samuel H. Mays following his guilty plea of possession with intent to distribute dihydrocodinone, a Schedule III controlled substance. Following his prison term, Dewalt must also serve three years of supervised release.
John McPeak, 34, of Drummonds, TN, was sentenced to 77 months in federal prison by U.S. District Judge Samuel H. Mays following his guilty plea of possession of precursor materials with the intent to manufacture methamphetamine. Following his prison term, McPeak must also serve three years of supervised release.
“Because General Dunavant has generously loaned us a prosecutor from his office to work as a Special Assistant United States Attorney, we can more effectively target significant drug dealers and other worst-of-the-worst criminals for prosecution in federal court,” said U.S. Attorney Stanton. “These successful prosecutions demonstrate the benefits of our federal-state partnership.”
“Citizens have a right to be safe in their homes and on the streets of our communities,” said General Dunavant. “I promise that we will use every means at our disposal to get criminals off the streets and behind bars in federal prison where there is no parole.”
In addition, four other individuals were indicted yesterday on the following charges: Mark Anthony Stephens, 41, of Brighton, TN, was indicted for one count of possession and distribution of less than 50 kilograms of marijuana, a charge that carries a penalty of not more than five years in prison, or not more than 10 years in prison if the defendant has a prior felony drug conviction; one count of being a felon in possession of a firearm, a charge that carries a penalty of not more than 10 years in prison or a minimum of 15 years in prison if the defendant has three prior violent felonies or serious drug offenses; one count of using a firearm during a drug crime, which carries a penalty of at least five years in prison to be served consecutively to other prison terms; and one count of distributing marijuana within 1000 feet of a public elementary school, which carries a penalty of up to 10 years in prison, or if previously convicted, up to 20 years.
Albert Dajaun White, 36, of Covington, TN, was indicted for one count of being a felon in possession of a firearm, a charge that carries a penalty of not more than 10 years in prison or a minimum of 15 years in prison if the defendant has three prior violent felonies or serious drug offenses; one count of being a felon in possession of ammunition, a charge that carries a penalty of not more than 10 years in prison or a minimum of 15 years in prison if the defendant has three prior violent felonies or serious drug offenses; one count of possession and distribution of less than 50 kilograms of marijuana, a charge that carries a penalty of not more than five years in prison, or not more than 10 years in prison if the defendant has a prior felony drug conviction; and one count of using a firearm during a drug crime, which carries a penalty of at least five years in prison to be served consecutively to other prison terms.
Freddy Reynolds, Jr., 50, and Pamela Diane Carter, 43, both of Millington, TN, were indicted for one count of conspiring to manufacture methamphetamine, a charge that carries a penalty of up to 20 years in prison, or up to 30 years in prison if the defendant has a prior felony drug conviction; one count of possession of materials to manufacture methamphetamine with intent to do so, a charge that carries a penalty of up to 10 years in prison, or up to 20 years in prison if previously convicted; maintaining a place for the purpose of manufacturing, distributing and using a controlled substance, specifically methamphetamine, a charge that carries a penalty of up to 20 years in prison; and three counts of being a felon in possession of a firearm, a charge that carries a penalty of not more than 10 years in prison or a minimum of 15 years in prison if the defendant has three prior violent felonies or serious drug offenses.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Tipton County Sheriff’s Office; and the Lauderdale County Sheriff’s Office. Special Assistant U.S. Attorney Sam Stringfellow represents the government.The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Federal Jury Convicts Pharmacist, Physician’s Office Manager and Three Drug Dealers in “Pill Mill” OperationRead the Press Release
DALLAS — A federal jury returned guilty verdicts late this afternoon against five individuals convicted for their roles in a pill mill conspiracy that operated in Dallas since 2010. The trial began Monday, January 27, 2014, in Dallas federal court before U.S. District Judge Barbara M. G. Lynn. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, the jury convicted each of the below-listed defendants on one count of conspiracy to unlawfully distribute controlled substances:
Lisa L. Hollier, 44, of Sunnyvale, Texas
Jose L. Martinez, 54, of Flower Mound, Texas
Joesephis Austin, 60, of Dallas
Patricia A. Bryant, 59, of Dallas
Walter R. Hudspeth, 62, of Dallas
According to evidence in the case, Austin, Bryant and Hudspeth operated as “dealers” who would recruit “patients,” often from homeless shelters, and drive them in groups to Padron Wellness Clinic (PWC), located at 1000 Emerald Isle Drive in Dallas. Co-conspirators physician Nicolas Padron, 54, of Garland, Texas, and Martinez opened PWC in the fall of 2010. PWC operated not as a legitimate medical facility, but as a place to unlawfully obtain controlled substances, such as hydrocodone.
Dr. Padron and Martinez, the PWC’s business manager, charged cash only for office visits in which Dr. Padron would do little to no physical examination and prescribe a “cocktail” of controlled substances, including hydrocodone, a Schedule II controlled substance and alprazolam, a Schedule IV controlled substance. Generally, they charged $250 for a new patient office visit and $185 for an established patient visit.
Typically, the dealers set appointments on PWC’s schedule and brought in multiple patients at a time. The dealers escorted the patients into the clinic, coordinated with Martinez and paid cash for the patients they brought. Dr. Padron would sometimes see two or more patients at a time in one exam room. Patient visits were short in duration and patients normally left with a 30-day prescription of 120 pills of hydrocodone and 30-90 units of alprazolam. Most of the patients were diagnosed by Dr. Padron with lower back pain and anxiety, without regard of their true condition; thus these prescriptions were medically unnecessary and outside the scope of professional practice.
Dr. Padron, who is awaiting sentencing, testified at trial. He pleaded guilty in September 2013 to his role in this conspiracy. He faces a maximum statutory penalty of 10 years in federal prison and a $500,000 fine on this conviction.
Hollier, a licensed pharmacist, owned and operated Urban Independent Pharmacy (UIP), located at 6300 Samuell Blvd., in Dallas. She and Dr. Padron coordinated a procedure for PWC’s staff to fax prescriptions for the controlled substances to UIP.
Once Dr. Padron issued the prescriptions, these dealers would drive the patients to UIP to get the prescription filled. Typically they did this in groups and Hollier had large amounts of hydrocodone and alprazolam in pre-filled bottles ready each day to handle the large groups of dealers and their patients. These dealers furnished the money to pay for the narcotics. Sometimes they paid Hollier directly for the prescriptions. After Hollier filled the prescriptions, the patients would give the dealers the pills which they would sell on the street for a profit.
Dr. Padron has also pleaded guilty, in a separate and unrelated case, to one count of conspiracy to commit health care fraud. A sentencing date is pending in that case also.
The case was investigated by the Dallas Health Care Fraud Prevention and Enforcement Action Team (HEAT) Strike Force, which includes the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG), the FBI and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorneys Kate Pfeifle and J. Nicholas Bunch are prosecuting.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the HEAT Strike Force, see: www.stopmedicarefraud.gov
Drug Dealer Sentenced to 12 Years in PrisonRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Terrin Tamal Anderson, age 29, of Waldorf, Maryland, today to 12 years in prison followed by eight years of supervised release for distributing cocaine base and being a felon in possession of a gun.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Chief of Police Robert Maclean of the U.S. Park Police; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to his plea agreement, from April 14, 2011 to January 30, 2012 ATF and U.S. Park Police agents made eight controlled purchases of cocaine base from Anderson totaling 308.8 grams. Anderson received a total of $11,000 for the drugs. The drugs were sold in different locations in Prince George’s County, Washington, D.C. and Oxon Hill, Maryland. On June 6, 2013, a search warrant was executed at Anderson’s residence. Agents seized a pistol. Anderson had previously been convicted of a felony and was prohibited from possessing a gun.
United States Attorney Rod J. Rosenstein praised the U.S. Park Police, ATF, DEA and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Thomas P. Windom, who prosecuted this Organized Crime Drug Enforcement Task Force case.District Man Sentenced to 16-Year Prison Term for Stabbing Victim He Met Through Dating Chat Line-Defendant Suddenly Attacked Victim, Stabbing Him Multiple Times-Read the Press Release
WASHINGTON – Lamar Brown, 37, of Washington, D.C., has been sentenced to a 16-year prison term for the brutal stabbing of a man in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
Brown pled guilty in November 2013, in the Superior Court of the District of Columbia, to a charge of assault with intent to kill while armed. He was sentenced on Jan. 31, 2014 by the Honorable Ronna L. Beck, who cited the viciousness of the attack. Upon completion of his prison term, Brown will be placed on five years of supervised release.
According to the government’s evidence, on July 31, 2012, at about 7:55 a.m., Brown stabbed the victim multiple times in the eye, face, neck, body, and hands while inside the victim’s home in Northeast Washington. Brown and the victim had met two or three weeks earlier on a dating chat line. In the time leading to the stabbing, they were in communication via text message and phone conversations. They also spent one night together prior to the stabbing. During the entirety of Brown’s interactions with the victim, the defendant used a fake name.
On the night before the stabbing, Brown went to the victim’s home and spent the night. Early the following morning, on July 31, 2012, Brown received a phone call. When the phone rang, Brown went into the bathroom. The victim remained in bed, falling in and out of sleep. The victim then awoke to the defendant stabbing him in the back of the neck with a knife. The victim rolled over and began struggling. During the struggle, Brown stabbed the victim multiple times in the eye, face, neck, body, and hands. The victim was able to get away and tried to call the police, but Brown ordered him to put down the phone and threatened to kill him.
The victim ran out of his apartment and banged on the doors of nearby apartments. Brown fled the scene and discontinued use of the phone he had used to contact the victim.
Brown’s use of a false name originally resulted in the wrong man being arrested for this offense. That man was released once emergency cell phone records obtained by the government exonerated him. Cell phone records and other investigation, meanwhile, led to the identification and arrest of Brown. Brown had been released from Virginia state prison less than a month before this attack after serving 18 years of incarceration. He was arrested on Aug. 20, 2012.
In announcing the sentence, U.S. Attorney Machen commended the work of the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department as well as the deputy marshals who worked on the case from the U.S. Marshals Service. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Joyce Arthur and Tiffany Jones and Criminal Investigator Nelson Rhone. Lastly, Mr. Machen thanked Assistant U.S. Attorneys Jodi Lazarus and Michelle Parikh, who investigated and prosecuted the case.
14-029Crack Dealer Sentenced to Four Years in Federal PrisonRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BAYOHAN MANGUAL, also known as “YG,” 29, of Willimantic and Hartford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 48 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, law enforcement identified MANGUAL and Errol Santouse, also known as “Twiggy” and “Sticky,” as close associates who were distributing narcotics in the Willimantic area. On five occasions in April and May 2012, Santouse sold crack in quantities ranging from 3.5 grams to 42 grams to a cooperating witness and an undercover ATF agent. On two occasions in June 2012, an individual working with law enforcement purchased distribution quantities of crack from MANGUAL.
On June 21, 2012, law enforcement searched a Willimantic residence connected to MANGUAL and seized a quantity of heroin packaged for distribution, two digital scales, narcotics packaging materials and $3,910 in cash.
MANGUAL has been detained since his arrest on June 28, 2012. On May 31, 2013, he pleaded guilty to one count of possession with intent to distribute and distribution of cocaine base (“crack cocaine”).
Errol Santouse also pleaded guilty and, on November 27, 2012, he was sentenced to 60 months of imprisonment.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Hartford Police Department and the Willimantic Police Department. The case was prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Court Permanently Enjoins Georgia Tax Return Preparer and Her CompanyRead the Press Release
A federal district judge in the Atlanta Division for the Northern District of Georgia permanently barred Joan Leger and her company from preparing federal income tax returns for others on Jan. 31, 2014, the Justice Department announced today. The judgment also requires Leger to send copies of the permanent injunction to her customers.
Leger, who resides in Stone Mountain, Ga., is a paid tax preparer who does business through The 1804 Tax Group Inc. and Liberty Tax Service, and previously did business through J & Company. The complaint alleges that since 2009, Leger, through her companies, has prepared almost 6,000 tax returns. Leger allegedly understated her customers’ tax liabilities and overstated their refunds by creating or inflating deductions, wages, income, expenses or credits in order to maximize the earned income tax credit, as well as wrongly claimed other credits and deductions. Leger’s practices include fabricating losses for non-existent businesses or businesses not owned and operated by the taxpayer, falsely claiming unreimbursed business expenses and falsely claiming the educational tax credit. Altogether, the complaint alleges that Leger’s activities may have resulted in a loss of more than $2 million to the U.S. Treasury. Leger and The 1804 Tax Group consented to the entry of the injunction.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2013. The Internal Revenue Service has tips for choosing a tax preparer: www.irs.gov/Tax-Professionals/Choosing-a-Tax-Professional. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website.
Related Materials:
United States v. Joan Leger, et al.
Complaint for Permanent Injunction
Final Judgment of Permanent Injunction Against Joan Leger and the 1804 Tax Group, Inc., d/b/a Liberty Tax ServiceConvicted Drug Felon Sentenced to Federal Prison for Illegal Firearm PossessionRead the Press Release
Huntington, W.Va. - A 29 year-old Putnam County man was sentenced today to three years and ten months in federal prison for being a convicted felon in possession of a firearm, announced U.S. Attorney Booth Goodwin. Joseph R. Elswick, of Hurricane, West Virginia, previously pleaded guilty in November of 2013 to being a felon in possession of a firearm before Chief United States District Judge Robert C. Chambers in Huntington. On December 27, 2012, Hurricane Police Officers responded to a call that a man was using drugs in a parked car. The officers approached Elswick who was in the vehicle. Elswick fled from the officers and upon his arrest was found to be in possession of a loaded .32 caliber pistol. Elswick was prohibited from possessing a firearm due to a 2009 felony drug conviction. He had not had his right to possess a firearm restored.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hurricane Police Department. Special Assistant United States Attorney Sharon M. Frazier handled the prosecution.
Chief Operation Officer, Comptroller and Director of Sales Sentenced in $21 Million Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the sentencing of Timothy B. Josselson, 49, and Kathryn A. Josselson, 42, both from Parma, Ohio, and Robert S. Lananna, 29, of Boynton Beach, Florida, for their participation in a $21 million investment fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the sentencing of Timothy B. Josselson, 49, and Kathryn A. Josselson, 42, both from Parma, Ohio, and Robert S. Lananna, 29, of Boynton Beach, Florida, for their participation in a $21 million investment fraud scheme.
These three defendants pled guilty in November 2013 to separate Informations, each charging one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 371. According to court documents, Timothy Josselson, Kathryn Josselson and Lananna conspired with each other and with other co-conspirators who were charged in a separate indictment. The indicted co-conspirators include James C. Howard, III, Patricia S. Saa, Louis N. Gallo, III, and Michael R. Casey.
According to court documents, the defendants conspired to defraud individuals who invested in Commodities Online LLC (COL). Timothy Josselson was the Chief Operating Officer, Katrhyn Josselson was the Comptroller, and Lananna was the Director of Sales. From approximately January 2010 through April 2011, the defendants used material false and fraudulent representations and material omissions to obtain over $21 million from over 700 investors. According to court documents, the investors lost over $18 million.
According to court documents, the defendants used COL to sell investments in purported transactions to buy and sell commodities. Among other things, the defendants represented to investors that COL had a track record of profits. However, COL did not have profits. Any payments made to investors were made using funds received from newer investors.
Also according to court documents, the defendants also made material misrepresentations and omissions about the leaders of COL. After mid-2010, the defendants represented that Howard, who was the founder of COL, was no longer President of COL. Defendant Casey, an attorney, was given the title of President of COL. However, Howard remained in charge.
Howard pled guilty and was sentenced on December 3, 2013 to 189 months in prison. A restitution hearing is set for February 24, 2014. The trial of Howard’s co-defendants is scheduled for March 10, 2014.
Mr. Ferrer commended the investigative efforts of the FBI. These cases are being prosecuted by Assistant U.S. Attorney Ana Maria Martinez.
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.
Central Indiana School Official Charged as Part of U.s. Attorney’s Operation Community WatchRead the Press Release
Allegations include use of hidden cameras inside of home to capture images of minor victims
MUNCIE – Joseph H. Hogsett, the United States Attorney, announced today that Darrell Hughes, age 55, of Muncie, has been charged by criminal complaint with one count of sexual exploitation and two counts of attempting to sexually exploit a minor. This follows a joint federal-local investigation as part of the U.S. Attorney’s ongoing Operation Community Watch.
“The criminal complaint in this case describes a disturbing pattern of predatory behavior from a school official who allegedly targeted the most vulnerable young people under his care,” Hogsett said. “Thanks to a great investigative team that stretched across jurisdictional lines, we have ended this abuse. We urge others who may have had interactions with the defendant to contact law enforcement immediately.”
Hogsett said those with information regarding the defendant can confidentially contact law enforcement at the New Castle Police Department.
“This case is particularly troubling given the defendant’s position as a counselor working with at-risk youth,” said Gary Woolf, Resident Agent in Charge of Homeland Security Investigations in Indianapolis. “Mr. Hughes allegedly betrayed the trust placed in him by his employer, this community, and most importantly, by the very children he was supposedly helping.”
The criminal complaint alleges that on January 15, 2014, detectives with the New Castle Police Department received information regarding the sexual exploitation of a minor by an employee of the local school system. After additional investigation by local officials and agents with Homeland Security Investigations, law enforcement was able to identify school counselor Darrell Hughes as a suspect.
The complaint describes allegations related to five male victims who had interactions with Hughes dating back to 2008. All five of the alleged victims struggled with disciplinary issues at school, with some of the victims having spent time incarcerated in one of the state’s juvenile justice programs. Because of this, they allegedly came into contact and began interacting with Hughes, who served as a middle and high school counselor.
In the case of Victim 1, Hughes allegedly began regularly providing the boy with cigarettes and money at school, followed by interactions outside of school that included the use of marijuana and alcohol. Hughes allegedly began inviting Victim 1 to spend the night at his Muncie home, where Victim 1 was asked to sleep in the same bed as the defendant. Victim 1 also alleges that Hughes took pictures of him in various states of undress, which the victim was told would be used to make him “a lot of money” as a model.
The criminal complaint also alleges that while staying at the defendant’s home, Victim 1 was urged to take showers, purportedly in order to remove the smell of marijuana. Hughes would allegedly tell the victim to wait so that he could “get the bathroom ready,” at which point Victim 1 would be allowed to take a shower. The complaint alleges that when these interactions would take place, Hughes could be found later sitting at his computer.
The complaint alleges that four other minor victims shared similar experiences to Victim 1, and in at least one instance, a minor victim located what they believed to be a hidden camera inside of the bathroom after they were asked to go shower. These cameras were allegedly hidden within clocks and/or watches, and were directed to capture images of the minors undressing and entering the shower. Other victims also allege they received massages from Hughes, were given the drug Ecstasy on some occasions, and in at least one case, the victim alleges that he awoke from what he believes was a sexual assault by Hughes.
A federal search warrant served at the Hughes household allegedly revealed a hidden memory card within a plant in the home’s bathroom. An initial forensic analysis of that memory card has allegedly revealed images and videos depicting a nude minor victim entering and exiting the shower. Law enforcement also alleges they have located two video-capable wristwatches with additional evidence.
According to Senior Litigation Counsel Steven D. DeBrota, who is prosecuting the case for the government, Hughes faces a minimum of 15 years in prison and up to a $250,000 fine if convicted. DeBrota said the case would not have been possible without the assistance of Homeland Security Investigations, the Henry County and Delaware County Prosecutors, the Hamilton County Metropolitan Child Exploitation Task Force, the New Castle Police Department, and the Muncie Police Department.
This arrest comes as Hogsett has announced a comprehensive crackdown on child exploitation in Indiana known as "Operation Community Watch," which allows prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials.
This case was brought as part of Project Safe Childhood, a larger nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 65 cases, a dramatic increase over prior years. These are all-time records for the Office.
Led nationally 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.
Informations, indictments, and criminal complaints are only a charge and are not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Canaan Man Sentenced to 2 Years on Federal Drug and Firearms ChargesRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Richard
Graf, 56, of Canaan, Maine, was sentenced in U.S. District Court by Chief Judge John A.
Woodcock, Jr. to two years in prison and three years of supervised release for possessing an unregistered short-barreled shotgun and manufacturing marijuana. Graf pled guilty to the charges on June 10, 2013.Graf’s conviction stems from the April 12, 2011 execution of a search warrant at his residence by the Somerset County Sheriff’s Department. Officers found the short-barreled shotgun and 11 other firearms in the residence. Officers also recovered over a pound of processed marijuana and 68 live marijuana plants. Graf acknowledged that he had been selling the marijuana.
The case was investigated by the Somerset County Sheriff’s Department and assistance from the Bureau of Alcohol Tobacco Firearms and Explosives.
Cambria County Man Sentenced to Probation, Community Service for Conspiring to Distribute MarijuanaRead the Press Release
JOHNSTOWN, Pa. - A resident of Elmora, Pa., has been sentenced in federal court to five years probation, the first six months of which must be served by condition of home confinement, and 100 hours of community service on his conviction of conspiracy to possess and distribute marijuana, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Joshua V. Bradley, 36.
According to information presented to the court, from March 2009 to May 9, 2011, Bradley conspired to possess and distribute 100 kilograms or more of marijuana. Evidence presented to the court at sentencing reflected that Bradley conspired with George M. Lowmaster and others to facilitate and promote Lowmaster's drug distribution organization.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
A joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, conducted the investigation that led to the prosecution of Bradley. Other agencies participating on the task force include the Internal Revenue Service-Criminal Investigation, Pennsylvania State Police, Pennsylvania Attorney General's Office, Cambria County District Attorney's Office, Carrolltown Police Department, Patton Police Department, Ebensburg Police Department, Portage Police Department and Paint Township Police Department.
California Woman and Montana Man Charged with Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Columbia, California, woman and an Alberton, Montana, man have been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
Beth Swank, age 52, and Claudio Puccio, age 46, were indicted on January 15, 2014. They appeared before U.S. Magistrate Judge Mark A. Moreno and pled not guilty to the Indictment.
The maximum penalty upon conviction is not more than 5 years in custody and/or a $250,000 fine, at least 2 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on November 23, 2013, in Lyman County, South Dakota, Swank and Puccio did knowingly and intentionally possess with intent to distribute marijuana and hashish, both a Schedule I controlled substance.
The charges are merely accusations and Swank and Puccio are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Division of Criminal Investigation. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Swank and Puccio were remanded to the custody of the U.S. Marshals Service pending trial, which has been set for March 25, 2014.
Bolivar Man Pleads Guilty to Possessing Child Porn, Faces 10 Years in PrisonRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Bolivar, Mo., man pleaded guilty in federal court today to possessing child pornography.
Leland Wallace Crull, 44, of Bolivar, pleaded guilty before U.S. Magistrate Judge David P. Rush to possessing child pornography.
Law enforcement officer executed a search warrant at Crull’s apartment on Aug. 9, 2012. Officers found Crull’s laptop computer, which contained multiple images of child pornography.
Under the terms of today’s plea agreement, Crull will be sentenced to 10 years in federal prison without parole, which is the statutory maximum penalty. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cybercrimes Task Force and the Polk County, Mo., Sheriff’s Department.Baker County Man Sentenced to 32 Months in Federal Prison for Failing to Register as Sex OffenderRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Ray Charles Gasaway (48, Glen St. Mary) to 32 months in federal prison for failing to register as a sex offender in the state of Florida after relocating from the state of Tennessee. Gasaway was also ordered to serve a 10-year term of supervised release and to register as a sex offender. Gasaway pleaded guilty on October 21, 2013, and has been in custody since his arrest on May 1, 2013, in Glen St. Mary.
According to court documents, on March 12, 1996, Gasaway was convicted of committing sexual battery and rape in Davidson County, Tennessee. Subsequent to his conviction, between June 2012 and May 2013, he relocated from Tennessee and established a residence in Florida. On May 1, 2013, an officer with the Baker County Sheriff=s Office responded to a residence in Glen St. Mary, in response to an anonymous tip that an unregistered male sexual offender named “Ray” was living at that residence. The officer made contact with Gasaway, who falsely identified himself as "Ray Galloway." Gasaway subsequently admitted that his real name was Ray Charles Gasaway, and that he had moved to Baker County from Tennessee about a year ago, and had not registered as a sexual offender in Florida. Gasaway was arrested. Records checks confirmed that Gasaway had failed to register as a sex offender with Florida authorities.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the U.S. Marshals Service, to assist the states in locating and apprehending non-compliant sex offenders. This case was investigated by the Baker County Sheriff’s Office, the United States Marshals Service, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc for more information about internet safety education.
Auburn Man Sentenced for Filing False Tax ReturnRead the Press Release
SYRACUSE, NEW YORK - BRADLEY S. LEADER (43, of Auburn, New York) was sentenced on Friday, January 30, 2014 by United States District Judge David N. Hurd, announced United States Attorney Richard S. Hartunian and Toni M. Weirauch, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, New York Field Office. Following his May 28, 2013 guilty plea to filing a false tax return, Judge Hurd sentenced LEADER to 4 years probation, 120 hours of community service, and restitution in the amount of $68,604.93.
Leader is a chiropractor who has worked at Leader Chiropractic, a chiropractic center located in Auburn, New York. From 2005-2009, he realized income in the approximate amount of $225,000 over and above the income he reported on his personal tax returns. This was accomplished by Leader not providing all pertinent information to his tax preparer; specifically he did not disclose to his tax preparer or identify on his tax returns additional gross receipts information (personal checks received from patients and certain insurance company checks). In his plea agreement, Leader admitted he failed to include $55,513.87 as income on his 2005 personal federal tax return, $38,412.83 as income on his 2006 personal federal tax return, $47.435.90 as income on his 2007 personal federal tax return, $43,130.86 as income on his 2008 personal federal tax return, and $42,036.00 as income on his 2009 personal federal tax return. Leader knew the returns he filed each year were false because each substantially under reported his income for that year.
This prosecution resulted from an investigation conducted by the Internal Revenue Service - Criminal Investigation. The case was prosecuted by Assistant United States Attorney Stephen C. Green.