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Monday 9 December 2013
Patrick Fay McMullen Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on December 4, 2013, before U.S. District Judge Donald W. Molloy, PATRICK FAY McMULLEN, a 31-year-old resident of McKinleyville, California, was sentenced to a term of:
- obation: 5 years, with 12 months house arrest
- ecial Assessment: $100
He was sentenced in connection with his guilty plea to conspiracy to possess with the intent to distribute marijuana.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
From the summer of 2008, until the summer of 2010, Joseph Chartraw organized and profited from a marijuana distribution network across Montana. Chartraw had numerous distributors and drug couriers in Montana. Chartraw's source of supply was identified by law enforcement as being in California. Chartraw used his cellular telephone to communicate with everyone in his distribution organization -- including his sources of supply in California.
Chartraw's first connection to a group of marijuana growers and distributors in California was Kirk Felhaber. Felhaber would bring together multiple growers at his home whenever Chartraw or one of his couriers would be arriving in California. Felhaber would have several individuals bring their marijuana to his home for redistribution to Chartraw or one of his couriers. McMULLEN, James Baltierra, Gregory Harris, and Henry Combs had several grow operations in Californian and were one of the sources of supply for Chartraw through Felhaber. Felhaber was the primary contact for the group and Chartraw until Felhaber refused to provide Chartraw with a title for a vehicle he had sold him. Felhaber then took a lesser role in the distribution-- he continued to participate -- just in a lesser degree.
At that point McMULLEN, Felhaber's grandson, took over the organization of deliveries to Chartraw's organization. McMULLEN was business partners with Baltierra. McMULLEN and Baltierra continued to distribute to Chartraw until the Summer of 2010 when Chartraw was arrested in Billings.
Evidence would have proven that more than 100 kilograms of marijuana was possessed by the conspiracy with the intent to distribute.
Chartraw, Harris, Combs, Felhaber, and Baltierra pled guilty to federal charges.
The investigation was conducted by the Federal Bureau of Investigation's Big Sky Safe Streets Task Force.
Parker Hunting Guide Pleads Guilty to Failing to File Income Tax Returns and Agrees to Pay $278,000 to the IRSRead the Press Release
DENVER – Richard K. Sears, age 65, of Parker, Colorado pled guilty before U.S. District Court Chief Judge Marcia S. Krieger today to three counts of failing to file tax returns with the Internal Revenue Service United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Sears, who is free on a bond, is scheduled to be sentenced by Chief Judge Krieger on March 4, 2014. Sears was charged by an Information in Denver on April 10, 2013. IRS Special Agents and Investigators with the Colorado Parks and Wildlife executed a search warrant on Sears’ residence in July of 2010.
According to the facts contained in the Information as well as the stipulated facts contained in the plea agreement, from 2004 through 2009 Sears owned and operated several businesses including Apache Park Land & Cattle, Inc. ("APLC"), Trophy Outfitters, Inc. ("TO"), Private Land Bucks and Bulls, Inc. ("PLBB") and Apache Park Livestock, Inc. ("APL"). Sears hunting business operated in Colorado and New Mexico and he solicited customers to travel to these two states to hunt big game such as elk, deer, and bear. The cost of hunting packages ranged from approximately $2,000 to $10,000. His other business was a livestock business in Colorado.
During calendar years 2004 through 2009, Sear’s received significant gross income from his businesses for which he failed to file income tax return for as required by law. He earned at least the following amounts of gross income when in fact he knew he was required to file income tax returns for these years:
Tax Year
Gross Income
2004
$ 281,763
2005
$ 382,946
2006
$ 93,701
2007
$ 155,586
2008
$ 75,755
2009
$ 274,953
Furthermore, in July of 1997, Sears purchased property in Parker, Colorado for the purpose of building a home for him and his family. The property was purchased in the wife’s name in an attempt to hinder IRS collection efforts as he was aware of back taxes he owed. Particularly, the IRS assessed taxes against Sears several times during 1991 through 1993 and was unsuccessfully in collecting over $37,000 in taxes plus interest and penalties. The IRS had filed tax liens against Sears for money he owed. Once the tax liens expired in 2007, Sears executed a quit claim deed transferring ownership of the property into his name.
The total tax loss of $ 278,274 is attributable to Sears’ endeavors to frustrate IRS collection of back taxes due and owed for calendar years 1991-1993, and the tax loss from his failures to file income tax returns for years 2004-2009.
“As citizens, we all have an obligation to file our tax returns and pay any tax properly owing,” said U.S. Attorney John Walsh. “Ignoring and circumventing tax obligations only results in a kind of ‘double trouble:’ Not only will the tax bill eventually come due with interest and penalties, but there is also the possibility of jail time and a criminal conviction.”
“Income tax fraud is based on greed, individuals who commit tax fraud are merely stealing money and creating an unfair tax burden on honest tax paying citizens. These individuals believe they will not be caught but they will be caught and brought to justice,” said Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office.
Willful failure to file a tax return with the IRS carries a penalty of not more than 1 year imprisonment, and up to a $100,000 fine, per count.This case was investigated by the Internal Revenue Service – Criminal Investigation with assistance from Colorado Parks and Wildlife, and US Fish and Wildlife Service.
This case is being prosecuted by Assistant U.S. Attorney Timothy Neff and Department of Justice Tax Division Trial Attorney Kevin Sweeney.
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Owner of Gourmet Food Markets Sentenced in Manhattan Federal Court to Five Years in Prison for Participating in Massive Tax Fraud Scheme That Concealed over $50 Million in Income from the IRS and for Witness TamperingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ADEM ARICI was sentenced today in Manhattan federal court by Chief United States District Judge Loretta A. Preska to five years in prison for his role in a long-running tax fraud conspiracy in which more than $50 million in gross receipts from six gourmet food markets in New York, New Jersey, and Connecticut was hidden from federal, state, and local tax authorities. ARICI was one of the leaders of the scheme and was one of the two of the nine defendants charged in the case with ownership interests in all six markets. ARICI pled guilty on June 4, 2013, before U.S. Magistrate Judge Paul E. Davison to one count of conspiracy to commit tax and fraud offenses, four counts of subscribing to false and fraudulent federal personal income tax returns, nine counts of aiding and assisting in the preparation of false and fraudulent federal corporate, partnership, and payroll tax returns, and one count of witness tampering in connection with a federal investigation of individuals engaging in prohibited transactions in which a Cuban national had an interest.
Manhattan U.S. Attorney Preet Bharara stated: “Those who cheat on their taxes impose an unfair burden on everyone else who dutifully pay their fair share. Adem Arici used the cover of his popular, gourmet markets to engage in tax and other fraud. Today, he learned the price he must pay for his crimes.”
According to the Indictment and statements made during court proceedings:
ARICI had an ownership interest and played an active management role in the following gourmet food markets (the “Markets”):
- Zeytuna, also known as Idaho Farmers Market, Inc., located at 59 Maiden Lane, New York, New York.
- The Amish Market, also known as Potato Farms LLC, located at 53 Park Place, New York, New York.
- Zeytinia Gourmet, also known as Forest Market LLC, located at 56 Maple Street, Croton-on-Hudson, New York.
- Zeytinia Fine Food Store, also known as Oakland Fine Food, Inc., located at 350 Ramapo Valley Road, Oakland, New Jersey.
- Zeytinia Fine Food Store, also known as Zeytinia LLC, located at 2801 Pacific Avenue – Units 203-204, Atlantic City, New Jersey.
- Zeytinia Gourmet Market, also known as Wilton Farms LLC, located at 14 Danbury Road – Suite 11, Wilton, Connecticut.
The Markets’ customers typically paid for their purchases with either cash or credit cards. Credit card payments, and on occasion a small portion of the cash receipts, were deposited into bank accounts maintained by each particular Market. The remaining cash was diverted from the books and records of the Markets. The owners of the Markets used this cash to pay business expenses, including cash payroll, as well as to line their own pockets. They paid numerous employees, including undocumented foreign citizens, in cash. The owners of the Markets failed to withhold and pay to the IRS the withheld payroll taxes, and caused the preparation and filing with the IRS of forms that falsely and fraudulently understated the true salaries paid to employees. In many cases, they failed to report the salaries of employees entirely.
The cash that was left over after paying business expenses was divided up among the owners of the Markets for their own personal uses. The owners of the Markets maintained a “second set of books” and other records that recorded the true income and expenses of the Markets and reflected the cash skimmed from each of the Markets. These books showed that the owners of the Markets failed to report in excess of $50 million in gross receipts during the years 2004 through 2009.
In addition to depriving federal, state, and local governments of approximately $5 million in corporate, payroll, and sales taxes, ARICI himself avoided paying over $1 million in personal income taxes.
With respect to the witness tampering count, on or about November 18, 2011, ARICI counseled an individual with whom he had traveled to Cuba unlawfully to falsely tell law enforcement agents with the Department of Homeland Security, among other things, that the individual did not travel to Cuba, did not know ARICI, and had not met with ARICI in Cuba.
In addition to the prison term imposed on ARICI, 51, of Easton, Connecticut, Chief Judge Preska ordered ARICI to forfeit $7 million and to serve three years of supervised release.
On September 12, 2013, co-defendant Jody Vitale was sentenced to time served followed by two years of supervised release, and ordered to forfeit $354,166. On October10, 2013, Josefina Caraballo was sentenced to one year of probation, and ordered to forfeit $41,331. Defendants Omer Ipek and Atilla Yayla are fugitives. All other defendants are awaiting sentencing.
Mr. Bharara praised the outstanding efforts of the Internal Revenue Service, Criminal Investigation, and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Lee Renzin and Perry A. Carbone are in charge of the prosecution.
The charges contained in the Indictment against the fugitive defendants remain pending and are merely accusations. Those defendants are presumed innocent unless and until proven guilty.
Osburn Pharmacist SentencedRead the Press Release
Ordered to Pay $75,594 in Restitution for Misappropriating Controlled Substances
COEUR D’ALENE — Steven R. Milot, 66, of Kellogg, Idaho, was sentenced to three years’ probation for wire fraud, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Milot to pay $75,594 in restitution and perform 100 hours of community service.
Milot was employed as a pharmacist at Osburn Drug in Kellogg for many years. In 2012, video surveillance recorded Milot misappropriating controlled substances. Idaho State Police executed a search warrant at Milot’s residence and found large quantities of various controlled substances that were not prescribed to him.
Milot pleaded guilty to the charge on August 20, 2013. In court, Milot admitted misappropriating controlled substances from Osburn Drug for three to four years and maintained that he personally used all of the controlled substances he took. A pill audit revealed that 1,817 Oxycodone IR five milligram tablets, 6,098 OxyContin forty milligram tablets, 580 sixty milligram OxyContin tablets, and 2,356 OxyContin eighty milligram tablets were missing, among others. Milot ordered the controlled substances via wire transmissions to avoid detection. Milot’s criminal activities caused restitution due and owing of $75,594 to Osburn Drug.
The case was investigated by the Idaho State Police, the Tactical Diversion Group of the Drug Enforcement Administration, and the Shoshone County Sheriff’s Office, with assistance from the Shoshone County Prosecutor’s Office.
Orange County Criminal Defense Attorney Sentenced to A Year in Prison in Federal Bribery CaseRead the Press Release
SANTA ANA, CALIFORNIA – An Orange County criminal defense attorney, who was convicted by a jury of executing a bribery scheme to obtain dismissal of a state criminal case against one of his clients, was sentenced today to 12 months and one day in federal prison.
Lawrence Anthony Witsoe, age 70, a resident of Mission Viejo, CA, was sentenced by United States District Judge Andrew J. Guilford. In September, Witsoe’s co-defendant, Aaron Scott Vigil, who was a police officer with the Rialto Police Department and a Task Force Officer with the U.S. Drug Enforcement Administration (“DEA”), was sentenced to 33 months in prison for his role in the bribery scheme.
In addition to his prison sentence, Witsoe’s license to practice law was suspended on August 12, 2013 as a result of his conviction in this case, according to State Bar records.
Earlier this year, a federal jury convicted both Witsoe and Vigil of conspiring to solicit a $2,500 bribe from one of Witsoe’s clients, who was charged with assault in a state criminal case, in exchange for having Officer Vigil falsely represent to the Orange County District Attorney’s Office that Witsoe’s client had been cooperating with Officer Vigil and the DEA in connection with drug investigations. In addition to the conspiracy count, Witsoe was also found guilty of two other counts, namely, soliciting the bribe payment from his client and offering and giving the bribe payment to Officer Vigil.
Release No. 13-143a
Omaha Man Sentenced for Wire Fraud and Weapons PossessionRead the Press Release
United States Attorney Deborah R. Gilg announced that Joshua Roth, age 37 of Omaha, Nebraska, was sentenced for wire fraud and being a felon in possession of a firearm. The Honorable Laurie Smith Camp sentenced Roth to twelve months and one day of incarceration to be followed by five years of supervised release. He was also ordered to pay restitution in the amount of $21,325.40.
Roth came into possession of a bank account number, user name and password of a First National Bank customer. He used that information to open a PayPal account in that customer’s name by representing himself to be that customer. Through that account, Roth was able to transfer money from the bank account to the PayPal account. He additionally used that information to purchase items from Ebay and had them shipped to his house. When officers served a search warrant at the house, they located some of the items ordered and also two firearms. Roth had previously been convicted of a felony offense and as such, is prohibited by law from possessing firearms.
The case was investigated by the United States Secret Service.
Ohio Woman Sentenced to Probation with Home Detention for Role in Marijuana Distribution SchemeRead the Press Release
JOHNSTOWN, Pa. - A resident of Hanoverton, Ohio, has been sentenced in federal court to five years of probation, the first 12 months of which must be served by conditions of home confinement, on her conviction of conspiracy to distribute and possess marijuana, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Bonnie L. Chapman, 63.
According to information presented to the court, from March 2009 to May 9, 2011, Chapman conspired with George M. Lowmaster to distribute and possess with the intent to distribute 100 kilograms or more of marijuana in order 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.
U.S. Attorney Hickton commended the joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Chapman. Other agencies participating on the task force include the Internal Revenue Service- Criminal Investigation; Pennsylvania State Police; the Pennsylvania Attorney General's Office; the Cambria County District Attorney's Office; the Carrolltown Police Department; the Patton Police Department; the Ebensburg Police Department; the Portage Police Department and the Paint Township Police Department.
Northrop Grumman Corp. Pays $11.4 Million to Resolve Allegations That It Improperly Charged Costs to Government ContractsRead the Press Release
The Justice Department announced today that Northrop Grumman Corp. has paid the United States $11.4 million to settle a government claim for penalties provided under the Federal Acquisition Regulation (FAR) and False Claims Act allegations stemming from its failure to abide by a 2002 settlement agreement with the Defense Contract Management Agency (DCMA). The government alleged that Northrop charged to its federal contracts certain costs for deferred compensation awards to key employees, even though it had promised not to do so as part of the earlier 2002 settlement.
“Federal contractors must abide by the obligations they accept when contracting with the government, including compliance with federal regulations restricting the types and amount of costs they can charge to their federal contracts,” said Assistant Attorney General for the Department of Justice’s Civil Division Stuart F. Delery. “The Department of Justice is committed to enforcing these fundamental obligations using every available tool, including FAR penalties assessed under the contract and, where appropriate, fraud-based counterclaims.”
Northrop had agreed in its 2002 settlement with DCMA that it would limit the amount of deferred compensation it would include in proposals for subsequent contracts. The government’s contracting officer found that Northrop had failed to honor this commitment and should be assessed a penalty equal to twice the amount of the unallowable costs claimed. Northrop challenged the decision in a complaint filed in the U.S. Court of Federal Claims in Washington, D.C. The Department of Justice responded to the suit with counterclaims alleging that in addition to the FAR penalties, Northrop also had violated the False Claims Act by passing along these unallowable costs to the government in indirect rates applicable to hundreds of 2004 contracts with the government. The government alleged that as a consequence of Northrop’s knowing misrepresentations, it was induced to pay more than $1.9 million in unallowable costs in thousands of vouchers and invoices.The settlement was the result of a consolidated effort spearheaded by the Civil Division’s Commercial Litigation Branch in conjunction with the DCMA and the Defense Contract Audit Agency, Western Region Investigative Support Division. The claims settled by this agreement are allegations only, and there has been no determination of liability. The case is captioned Northrop Grumman Corporation v. United States, Fed. Cl. No. 07-482C.
North Idaho Man Sentenced for Conspiring to Distribute MethamphetamineRead the Press Release
COEUR D’ALENE — Anthony Jerald Brown, 29, of Coeur d’Alene, Idaho, was sentenced today on charges of conspiracy to possess with intent to distribute and distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge sentenced Brown to 60 months in prison followed by three years of supervised release. As part of his sentence, Brown was ordered to forfeit $10,000 in illegal drug proceeds. During his community release, Brown will be required to report to a federal supervision officer and allow law enforcement to search his person, home and automobile upon demand. Brown will also be required to be employed or in school full-time and to report for drug testing.
Brown pleaded guilty to the charge on September 4, 2013. At the plea hearing, Brown admitted to buying and selling between 500 grams and 1.5 kilograms of methamphetamine from June 2011 until May 2012.
The case is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the North Idaho Violent Crime Task Force, a Federal Bureau of Investigation sponsored Safe Streets Task Force comprised of law enforcement from the Kootenai County Sheriff’s Office, Coeur d’Alene City Police Department, Post Falls Police Department, Idaho State Police, Bonner County Sheriff's Office, Shoshone County Sheriff's Office, and the Coeur d’Alene Tribe.
The OCDETF program is a federal multi agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. Federal task force members include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and U.S. Marshals Service.
New York Man Sentenced to 136 Months’ Imprisonment for EscapeRead the Press Release
And Robbery Of Dunmore Bank
The United States Attorney’s Office for the Middle District of Pennsylvania announced that today Senior United States District Court Judge James M. Munley sentenced Romeal Price, age 36, of Brooklyn, New York, to 11 years and four months’ imprisonment for escape and bank robbery.
According to United States Attorney Peter J. Smith, Romeal Price appeared for sentencing today in Federal Court in Scranton following an earlier guilty plea wherein he admitted to bank robbery and escaping from the Catholic Social Services Residential Reentry Center on June 18, 2013.
At the time of his escape, Price was serving the remaining few months of a 15-year federal prison sentence from 2001. Ten days after his escape, he robbed the Pennstar Bank, in Dunmore, Pennsylvania, of approximately $11,000. Following the robbery, Price fled to New York City. On July 17, 2013, deputies from the United States Marshals Service arrested Price in a New York City apartment without incident.
In October 2013, Vanessa Ramos, age 23, pleaded guilty to aiding and abetting the bank robbery by acting as the getaway driver for Romeal Price. Ramos is awaiting sentencing.
The case was investigated by the United States Marshals Service, the Federal Bureau of Investigation, and the Dunmore Police Department. The case is being prosecuted by Assistant U.S. Attorney John Gurganus.
New Haven Man Sentenced to More Than 10 Years for Firearm Offense, Violating Supervised ReleaseRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that found TYRON HAMMOND, 31, of New Haven, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 126 months of imprisonment for illegally possessing a firearm, and for violating the conditions of his supervised releases from a previous federal conviction.
According to the evidence presented during a trial in August, on December 11, 2012, the U.S. Marshals Service Violent Fugitive Task Force, executing a state arrest warrant, arrested HAMMOND at an apartment on Chambers Street in New Haven. A subsequent court-authorized search of the apartment revealed a fully-loaded .22 caliber revolver with one expended casing.
The Connecticut Department of Emergency Services and Public Protection’s Forensic Science Laboratory determined that HAMMOND’s DNA was on both the firearm and the ammunition.
HAMMOND’s criminal history includes a 2004 federal conviction for possession of a firearm by a previously convicted felon. That conviction stemmed from an incident in November 2003 when HAMMOND shot and injured an individual with a .44 caliber revolver in the Farnam Court housing complex in New Haven. HAMMOND was also convicted in state court of first degree assault in relation to the shooting. In December 2004, HAMMOND was sentenced in U.S. District Court to 10 years of imprisonment, followed by three years of supervised release. He was released from federal prison in July 2012.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On August 28, 2013, a jury found HAMMOND guilty of possession of ammunition by a previously convicted felon. The ammunition was manufactured in Idaho, but the revolver was manufactured in Connecticut and could not be traced due to its age.
Judge Hall sentenced HAMMOND to 108 months of imprisonment for the illegal possession of ammunition, and a consecutive 18-month prison term for violating the terms and conditions of his supervised release from the 2004 conviction.
This matter was investigated Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service Violent Fugitive Task Force, and the New Haven Police Department. This case was prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]NOAA Special Agent Charles A. Raterman Honored by U.S. Attorney Alicia A.G. LimtiacoRead the Press Release
HAGATNA, GU – United States Attorney ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), presented a special award today to National Oceanic and Atmospheric Administration (NOAA) Special Agent Charles (Chuck) A. Raterman in recognition of his work to establish a Sea Turtle reward program for this region.
The poaching of sea turtles is prevalent on Guam. It is a challenge to prosecute such violators because they typically reside in the smaller villages on the southern part of Guam, where hunting and killing sea turtles is a source of increased status. A network of friends and relatives are often aware of their activities and they maintain a traditional code of silence as to the violators. This reward program was initiated to raise awareness of the effect of this poaching and to break that code of silence, encouraging citizens to come forward, even if it might involve persons within their social or village network.
This is NOAA’s first permanent reward program for turtles, known as “haggan” in the Chamorro language. Chuck created flyers urging people to be “Haggan Heroes,” posted them at mayors= offices, stores, charter dive shops and fish markets on Guam and Saipan. He has appeared at numerous Saturday public outreach events sponsored by law enforcement, as well as fishing derbies, career days and local festivals, radio and school appearances. He has enlisted the support of the Guam Department of Wildlife Resources, whose agents have assisted him in distributing more than 200 posters around this region.
To date, three individuals have qualified for this $1,000 reward by providing information that has led to the arrest and conviction of turtle poachers. We are hopeful that more people will come forward to help us put an end to this destructive poaching, so this species has a chance to recover.
See attached photos.
From left to right, First Assistant Steve Sinnott, Civil Chief Mikel Schwab, U.S.
Attorney Alicia Limtiaco, NOAA Special Agent Chuck Raterman and AUSA Karon Johnson.
NOAA Special Agent Chuck Raterman with the U.S. Attorney’s Staff for the District
of Guam after being presented with a plaque and a turtle with the staff’s congratulatory remarks.Morgan County Judge-Executive and Owners of Salyersville-Based Bridge Contractor Indicted for Kickback Scheme, Fraud, and Money LaunderingRead the Press Release
LEXINGTON, KY - Timothy Alexander Conley, the Morgan County Judge Executive, has been charged with soliciting and accepting kickbacks from a Salyersville, KY., based bridge contractor, in exchange for contract awards, according to a federal indictment unsealed today.
The indictment, filed under seal on Thursday, December 5, charges Conley and Kenneth Lee Gambill and Ruth L. Gambill, the co-owners of PBTHNOJJ Construction, with several offenses arising from the kickback scheme. Conley and Kenneth Gambill are both charged with four counts of mail fraud and one count of theft from a program receiving federal funds. All three defendants are also charged with conspiring to launder money.
Specifically, the indictment alleges that, from early 2009 until August 2013, as part of a mail fraud scheme, Conley rigged competitive bidding processes to select PBTHNOJJ Construction for Morgan County construction contracts. After obtaining PBTHNOJJ Construction’s payments for these contracts, Kenneth Gambill then delivered to Conley cash kickbacks from the contract proceeds.
In addition, Conley and Kenneth Gambill are charged with defrauding a federally-funded program. The indictment alleges that Conley misappropriated money from Morgan County, which received federal funding for emergency services, debris cleanup, and rebuilding efforts following a tornado that swept through West Liberty, KY., on March 2, 2012. As part of the debris cleanup effort, Morgan County contracted with PBTHNOJJ Construction and other entities. Conley allegedly abused his position to ensure that PBTHNOJJ Construction received excessive payments for this work.
Finally, Conley, Kenneth Gambill, and Ruth Gambill are charged with conspiring to launder the proceeds of these crimes, in order to promote ongoing illegal activities and conceal the nature and source of the funds, among other things.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Perrye Turner, Special Agent in Charge, FBI, and Jack Conway, Kentucky Attorney General jointly announced the indictment today.
The investigation preceding the indictment was conducted by the FBI and the Kentucky Attorney General’s Office. The indictment was presented to the grand jury by Assistant U.S. Attorney Andrew T. Boone.
Conley is scheduled to appear in federal court on Tuesday, December 10 in Lexington at 3:00 pm. Kenneth Gambill will appear in court on December 30, 2013 at 1:00. in Lexington. A date for Ruth Gambill to appear in court has not yet been scheduled. The mail fraud and money laundering counts each carry a maximum penalty of 20 years in prison. The federal program fraud count carries a maximum penalty of 10 years in prison. The maximum fine for each count is $250,000. However, any sentence following a conviction would be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statutes.
An indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Monroeville Man Was Part of Violent Heroin Trafficking ConspiracyRead the Press Release
PITTSBURGH - A Monroeville man pleaded guilty in federal court to federal firearms and drug trafficking charges, United States Attorney David J. Hickton announced today.
Antonio Hardin, 32, pleaded guilty to two counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the Court was advised that from April 2012 to February 2013, Hardin conspired together with his charged co-defendants Brandon Thompson, James Walker, Richard Wood, Gregory Harris, Jr., Luther Harper and others to possess with the intent to distribute and distribute, heroin. Those co-defendants have pleaded not guilty and the charges are still pending against them.
Specifically, the Court learned, for example, that in April, 2012, Hardin received heroin from co-conspirator Brandon Thompson. Hardin then supplied this heroin to an uncharged co- conspirator who was later shot by Thompson and Edward Cook at Club Pink in Munhall, Pa., on or about August 12, 2012. Cook has pleaded guilty to this shooting, and he was sentenced to 12-years imprisonment. The Court also learned that Hardin, acting together with Brandon Thompson, James Walker, and Joseph Thompson, shared a heroin “stash house” with them in Pitcairn, Pa., at which these persons packaged raw heroin into stamp bags that would later be sold on to other dealers, and eventually to individual users. In addition, the Court learned that Hardin, over the course of the conspiracy, sold heroin to other charged distributors, including Richard Wood, Gregory Harris, Jr., and Luther Harper. The Court heard intercepts of a call in which Luther Harper and Bryce Harper discussed purchasing 25 brick quantities (40 gram quantities) of heroin from Hardin that the Harpers then planned to distribute to individual users.
Last, Hardin acknowledged that during his drug trafficking crimes he possessed a firearm, including a 9mm Glock, to protect himself and to protect his drugs. Specifically, Hardin carried a firearm during his drug trafficking crimes. As a result, Hardin possessed a firearm in furtherance of the abovementioned drug trafficking crimes.
Judge Bissoon scheduled sentencing for April 30, 2013. The law provides for a total sentence of up to life in prison, a fine of up to $5,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Pennsylvania Office of the Attorney General, City of Pittsburgh Bureau of Police, Pennsylvania State Police, Allegheny County Sheriff's Office, McKeesport Police Department, Munhall Police Department, and the West Homestead Police Department conducted the investigation that led to the prosecution of Antonio Hardin.
Manhattan Man Pleads GuiltyTo Being Accessory After the Fact in Fatal ArsonRead the Press Release
WICHITA, KAN. - A Manhattan, Kan., man has pleaded guilty to being an accessory after the fact in an arson that killed a Kansas State University researcher, U.S. Attorney Barry Grissom said today.
Gavin Taylor Hairgrove, 30, Manhattan, Kan., pleaded guilty Monday to one count of accessory after the fact in the Feb. 6, 2013, arson at the Lee Crest Apartments in Manhattan. Vansanta Pallem, who lived in the apartments, died as a result of inhaling gases from the fire.
In his plea, Hairgrove admitted that on Feb. 6, 2013, he was present when co-defendants Frank Joseph Hanson, Dennis James Denzien and Patrick Martin Scahill talked about what to do to keep the Riley County Police Department from searching an apartment where Scahill and Denzien lived. They were afraid that during a search police would find evidence that Denzien and Hanson had robbed Dara’s Fast Lane store in Manhattan on Feb. 5, 2013, and that the gun used in the robbery was owned by Scahill. They were also concerned that police would find narcotics in the apartment. The group talked about creating a diversion that would give Scahill time to re-enter the residence and remove the incriminating evidence.
Later that day, Scahill and co-defendant Virginia Griese drove to the Lee Crest Apartments in Manhattan, where Scahill poured gasoline in a hallway of the apartments and started a fire in an effort to create a diversion. Vasanta Pallem was killed in the fire.After setting the fire, Scahill and Griese made their way back to Griese’s apartment where Scahill cleaned up and removed his clothing because it smelled like gasoline. Hairgrove assisted Scahill in disposing of Scahill’s shoes, which reeked of gasoline. Hairgrove also provided Scahill with another pair of shoes to wear.
Sentencing is set for Feb. 24, 2014. He faces a maximum penalty of 15 years in federal prison and a fine up to $250,000.
Grissom commended all the investigators and law enforcement agencies that worked on the case, including the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Riley County Attorney=s Office, the Riley County Police Department, the Manhattan Fire Department, the Kansas State Fire Marshal=s Office, the Kansas Bureau of Investigations and the Pottawatomie County Sheriff=s Office, as well as Assistant U.S. Attorney Jared Maag, Special Assistant U.S. Attorney Barry Wilkerson and Special Assistant U.S. Attorney Barry Disney, who are prosecuting.
Man Sentenced to Five Years for Drug ConspiracyRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Dale Lockwood, 61, of Buffalo, New York, was sentenced to 60 months in prison and 4 years supervised release by United States District Court Judge Richard J. Arcara. The sentence followed the defendant’s conviction for conspiracy to possess with intent to distribute 500 grams or more of cocaine, and was part of a larger, federal criminal investigation into the Afro-Dogs Motorcycle Club.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that as part of their investigation, agents from the Drug Enforcement Administration intercepted the defendant and others engaging in narcotics-related conversations pursuant to a Court-ordered wiretap. On March 3, 2011, agents and officers discovered inside Lockwood’s home at 567 Lasalle Avenue, over $71,000 in US currency, eight firearms, ammunition, and drug scales. The overall Afro-Dogs investigation ultimately resulted in the indictment of 12 defendants, including Lockwood. During the course of the investigation agents purchased or seized in excess of 1100 grams of cocaine or cocaine base and recovered 11 other firearms.
Lockwood and five others charged in the case proceeded to trial in April of 2013. While the jury convicted the leader of the Afro Dogs, Dewey Taylor, of numerous narcotics related charges, the jury was unable to reach a verdict as to Lockwood. The defendant thereafter pleaded guilty to the narcotics charges giving rise to today’s sentence on August 5, 2013.
To date, nine defendants have been convicted in connection with the Afro Dogs investigation. In addition to the term of imprisonment, Lockwood must also forfeit an additional $50,000 and any interest he may have in the Afro-Dogs Clubhouse at 1093/1095 Genesee Street.
The conviction was the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, law enforcement officers of the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, Town of Tonawanda Police Department, under the direction of Chief Anthony J. Palombo, Lockport Police Department, under the direction of Chief Lawrence M. Eggert, along with Special Agents of the Bureau of Alcohol Tobacco and Firearms, under the direction of Resident Agent in Charge Frank Christiano.MS-13 Gang Leader Sentenced to Life in PrisonRead the Press Release
Earlier today at the federal courthouse in Central Islip, New York, Heriberto Martinez, also known as “Boxer,” the former leader of the Coronados clique of La Mara Salvatrucha, also known as the MS-13 street gang, was sentenced to life in prison. Martinez and co-defendant Carlos Ortega, also known as “Silencio,” were convicted, on March 21, 2013, following a six-week trial, on all 21 counts of the trial indictment, including racketeering, racketeering conspiracy, murder, assault with dangerous weapons, and related firearms and conspiracy offenses. Ortega was sentenced to life in prison on November 21, 2013.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Thomas V. Dale, Commissioner of the Nassau County Police Department.
“Heriberto Martinez placed less value on human lives than he did on enforcing the barbaric rules of the MS-13, and, as a leader of the MS-13, making sure other gang members were doing the same. In keeping with those twisted rules, during a six-week period in early 2010, Martinez authorized the execution of a young mother, whom he believed had disrespected the gang, ordered the execution of a security guard for doing his job, and both advocated for and carried out the execution of a fellow MS-13 member who refused to commit senseless, violent crimes,” stated U.S. Attorney Lynch. “The jury’s verdict earlier this year and today’s sentence demonstrate that the brutal and senseless violence committed by Martinez and his fellow MS-13 members will not be tolerated and will be prosecuted tenaciously.” Ms. Lynch extended her grateful appreciation to the members of the FBI’s Long Island Gang Task Force and the New York City Police Department for their assistance in this case.
FBI Assistant Director-in-Charge Venizelos stated, “Martinez terrorized, victimized, and murdered members of our community in the name of MS-13. His violence and criminal activity knew no limits. Consistent with the recent sentences of other MS-13 gang members, today’s sentence of Martinez should send a clear message to all members of these violent enterprises: your actions will not be tolerated, no matter what group you hide behind. The FBI, along with our law enforcement partners, will continue efforts to rid the streets of these violent criminals and bring them to justice.”
At trial, the government proved that Martinez, along with his fellow MS-13 gang members, killed multiple victims between February and March of 2010:
(1) Martinez was convicted in connection with the execution-style murder of Vanessa Argueta, a 19-year-old woman, in Central Islip, New York, on February 5, 2010. Martinez also was convicted of being an accessory after-the-fact in the murder of Argueta and her 2-year-old son, Diego Torres, who was shot and killed during the same criminal incident. Martinez helped three of his co-conspirators evade arrest in New York and flee to El Salvador after the commission of the murders. The bodies of Argueta and Torres were found in a secluded wooded area in Central Islip. Argueta had been shot in the head and chest, and Torres had been shot twice in the head.
(2) Martinez also was convicted in connection with the execution-style murder of 23-year-old Nestor Moreno, a security guard at El Rancho Bar and Grill in Hempstead, New York, on March 6, 2010. In late February 2010, Heriberto Martinez and several other members of the MS-13 were involved in a dispute with El Rancho employees over an unpaid bar tab. The dispute escalated into a physical altercation during which Martinez was sprayed with pepper spray. Prior to leaving El Rancho, Martinez identified himself as an MS-13 member to the victim and told him, “It’s not going to end like this.” On March 6, 2010, Martinez, along with four co-conspirators, returned to El Rancho and carried out that threat, shooting Moreno in the head at point-blank range. The gun used to kill Moreno was the same semi-automatic handgun used to kill Argueta and her son one month earlier.
(3) Both Martinez and Ortega were convicted for the March 17, 2010, murder of Mario Alberto Canton Quijada in Far Rockaway, New York. Quijada, who was a fellow member of the MS-13, was killed because of his reluctance to “put in work,” or attack rival gang members on behalf of the MS-13. On March 17, 2010, Quijada was lured to the beach in Far Rockaway under the guise of attacking rival gang members. Once alone on the beach, the MS-13 gang members tried to shoot Quijada in the head with the same semi-automatic handgun used in the murders of Moreno, Argueta, and Argueta’s son. However, the gun jammed. Undeterred, Martinez, Ortega, and the other MS-13 members set upon Quijada with knifes and machetes and hacked him to death.
Martinez’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international street gang comprised primarily of immigrants from El Salvador, Honduras, and Guatemala. With numerous branches, or “cliques,” the MS-13 is the largest street gang on Long Island. Since 2002, more than 200 MS-13 members, including more than two dozen clique leaders, have been convicted on federal felony charges in the Eastern District of New York. More than 100 of those MS-13 members have been convicted on federal racketeering charges. Since 2010 alone, this Office has convicted more than 30 members of the MS-13 on charges relating to their participation in one or more murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, Rockville Centre Police Department, and Suffolk County Police Department.
The life sentence was imposed by United States District Judge Joseph F. Bianco.
The government’s case was prosecuted by Assistant United States Attorneys John J. Durham, Raymond A. Tierney, and Carrie N. Capwell.
The Defendant:
HERIBERTO MARTINEZ, also known as “Boxer”
Far Rockaway, New York
Age: 26Lockport Man Sentenced for Drug Conspiracy Charge and Buffalo Woman Sentenced for Money Laundering Conspiracy ChargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Mark Robertson, 41, of Lockport, NY, was sentenced to 3 years supervised released with 6 months electronic monitoring, for his conviction for conspiracy to possess with intent to distribute, and to distribute, heroin. Danielle Barton, 31, formerly of League City, Texas, was sentenced to 9 months in prison, 1 year supervised release, and fined $5,000, for conspiracy to commit money laundering. Both sentences were imposed by Chief Judge William M. Skretny, United States District Court.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that the sentences imposed today were the result of an investigation into narcotics trafficking in Niagara County and the City of Buffalo conducted by the Drug Enforcement Administration and Niagara County Drug Taskforce. Robertson distributed heroin in the Lockport, New York area from July 2009 through August 2010, which was supplied to him by co-defendants Damian Ard and John Cruz. Barton, meanwhile, made cash deposits of approximately $131,000, which were proceeds of Will Johnson’s drug activities, into her bank account.
In total, investigators charged twenty-four defendants in connection with this investigation, twenty-two of whom have been convicted. The leader of the narcotics trafficking operation, Will Johnson, was sentenced to 10 years in prison on September 13, 2013.
This conviction is the culmination of an investigation by Special Agents of the United States Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, and the Niagara County Sheriff’s Drug Task Force, under the direction of Sheriff James Votour.Kevin Scott Nessland Found Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that on December 2, 2013, in Missoula, after a federal district court bench trial before Chief U.S. District Judge Dana L. Christensen held on November 27, 2013, KEVIN SCOTT NESSLAND, a 41-year-old resident of Bozeman, was found guilty of (3) counts of receipt of child pornography. Sentencing is set for March 6, 2014. He is currently detained.
At trial, the following evidence and testimony were presented.
On October 17, 2011, the Bozeman Police Department began a criminal investigation which involved the surreptitious visual observation of two victims in Bozeman. The suspect was NESSLAND.
When the investigation commenced, NESSLAND left the Bozeman area. When NESSLAND left Bozeman, he took some of his computers and equipment from his residence.
On October 18, 2011, NESSLAND spoke to a Bozeman Police detective by phone and the conversations were recorded. During one of the phone conversations, NESSLAND told the detective that he has sex addiction issues and was on his way to a treatment facility out of state. NESSLAND also indicated that he had a computer with him in his vehicle.
On October 18, 2011, the Bozeman Police Department obtained a search warrant for NESSLAND's residence and served the warrant the same day. Photographs of the residence were taken. Law enforcement seized several computers, electronic storage devices and other items. Law enforcement also determined that computers had been removed from the residence prior to the search. A warrant for NESSLAND's arrest was issued.
On November 7, 2011, NESSLAND was located by law enforcement in Idaho. Blackfoot Police officers responded to NESSLAND's vehicle. NESSLAND was located in his vehicle during a suicide attempt. Officers had to break the window of NESSLAND's vehicle, and he was transported from the scene via ambulance.
The contents of the vehicle were inventoried, which included computers, external storage devices and other items. After they learned of the Montana arrest warrant, Blackfoot Police advised the Bozeman Police Department of the items in their custody. The computer and other electronic devices were transferred to the Bozeman Police Department.
On November 7, 2011, a detective began an initial review of the computers, a camera, and storage devices. While the detective was looking for evidence of the crime of surreptitious visual observation/recordation and burglary, he found images of child pornography. All the computers and electronic devices were then sent to the Montana DCI Computer Crime Lab for forensic examination. This included the devices seized from NESSLAND's residence and vehicle.
A Certified Forensic Computer Examiner located more than 1,700 files which were visual depictions of minors engaged in sexually explicit conduct. The image files were located on multiple external storage devices, and were created between February 2007 and September 2010.
Assistant U.S. Attorney Cyndee L. Peterson prosecuted the case for the United States.
NESSLAND faces possible penalties of a mandatory minimum of 5 years in prison and could be sentenced to 20 years, a $250,000 fine, and lifetime supervision for each of the (3) counts.
The investigation was a cooperative effort between the Montana Internet Crimes Against Children Task Force (ICAC), the Bozeman Police Department, the Montana Department of Criminal Investigation, and the Idaho Blackfoot City Police Department.
KC Company Pleads Guilty to Illegally Transporting Hazardous WasteRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., company pleaded guilty in federal court today to illegally transporting hazardous waste.
Z-Group, LLC, is a Kansas company registered to do business in Missouri. Company president Friedrich-Wilhelm Zschietzschmann represented the company in court today to plead guilty before U.S. District Judge Brian C. Wimes to illegally transporting hazardous waste.
Zschietzschmann was also the president and CEO of Z-International, Inc., which specialized in the labeling industry. Z-International used large quantities of ink and ink-related products in its business, making labels for numerous companies all over the world. Z-International was located at 110 East 16th Street, Kansas City, Mo. Z-Group was established in 2001 by Zschietzschmann to serve as owner of real estate where Z-International operated its business.
Z-International was closed by Zschietzschmann in July 2010. Any assets or fixtures remaining on the property after the business closed were sold or otherwise disposed of by a Z-International employee.
Between July 2010 and April 2012, the company authorized personnel to hire others to transport hazardous waste to a separate location. Z-International employees authorized the transportation of 23 containers of varying sizes that contained liquid hazardous waste to Studer Container Service, 520 Madison Ave., Kansas City, Mo. Studer did not have a permit to receive hazardous waste.
In April 2012, Environmental Protection Agency officials conducted a compliance inspection at Studer. During the inspection, EPA inspectors found several containers of what appeared to be hazardous materials.
On June 28, 2012, EPA began its sampling and clean-up operation. On Dec. 21, 2012, the EPA National Enforcement Investigations Center provided analytical results for 38 samples collected from the containers dumped at Studer. Five of the samples tested positive for ignitability and two of the samples tested positive for toxicity.
The EPA Superfund Program cleaned up the hazardous waste at Studer to eliminate possible adverse effects on human health and environment. The total EPA Superfund cost was $36,871.
Under the terms of today’s plea agreement, Z-Group must pay a $50,000 fine and $36,871 in restitution, for a total payment of $86,871. The company is also subject to up to five years of probation. 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 Jane Pansing Brown. It was investigated by the Environmental Protection Agency, Criminal Investigation Division.Jose Morales Sentenced to Life in Prison for Murdering A Witness in A Baltimore City CaseRead the Press Release
Prosecution of Morales Resulted in the Exoneration of Demetrius Smith
for a Crime He Didn’t CommitGreenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Jose Joaquin Morales, age 37, of Baltimore, Maryland, today to life in prison for using a cell phone to arrange the murder-for-hire of Robert Long, who was a cooperating witness in a case pending against Morales in the Circuit Court for Baltimore City. Morales is currently serving two consecutive 262 month sentences for drug convictions in Maryland and Texas.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police.
“Thanks to outstanding law enforcement work, Jose Morales will spend the rest of his life in federal prison for murder, and a wrongly convicted man was exonerated,” said U.S. Attorney J. Rosenstein.
“Today’s sentencing of Jose Morales not only closes the book on a career offender, it slams shut the prison cell door,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office. “This case as well as the prior drug case against Morales strongly illustrates DEA’s commitment to target career offenders. Due to the combined efforts of law enforcement agencies along with the United States Attorney’s Office, Morales will never see the light of freedom again.”
According to evidence presented at his two week trial, Long and Morales were co-defendants in a series of theft cases in Baltimore City Circuit Court. Long had agreed to testify against Morales less than two weeks before he was shot. Detectives used Long’s information to obtain a search warrant at Morales’ home and seized a large amount of stolen construction equipment. Six days later, on March 24, 2008, Long was dead. Witnesses testified that Morales ordered the murder to prevent Long, who was also an employee of Morales, from testifying against him.
The jury learned that three weeks after the murder, Morales confessed to his attorney, Stanley Needleman, that he paid Dead Men Inc. (DMI), a prison and street gang, $20,000 to kill Long. Needleman testified that he had learned that Long was cooperating against Morales and reported that fact to Morales on March 20, 2008. Long was last seen about 15 minutes before his murder walking with a DMI member.
Trial evidence was presented that Morales was arrested on unrelated drug trafficking charges I August 2008 in Texas. He was convicted and sentenced to 22 years in prison. At the time of his arrest, he purported to cooperate against Needleman, advising federal agents that Needleman was involved in drug trafficking and that Needleman told Morales that he (Needleman) “took care” of Morales’ co-defendant by having him killed by DMI. Needleman testified that he did not learn about the cooperation until Needleman was the subject of an April 2011 federal search warrant that yielded over $1.2 million dollars in unreported cash in his home. Needleman subsequently pled guilty in September 2011 and agreed to testify, and did testify, against Morales.
The jury also heard testimony that Morales learned in 2011 that federal authorities were investigating Long’s murder. In order to convince federal agents in Maryland to proffer him in order to reduce his Texas sentence, Morales stated that a DMI member and the member’s brother shot Long in the head twice. Morales also made incriminating statements about his knowledge and involvement in the murder to two other inmates who also testified at trial.
Stanley Needleman, age 71, of Pikesville, Maryland, pleaded guilty to tax evasion and structuring financial transactions to avoid reporting large cash receipts and deposits. Needleman was sentenced on December 15, 2011 to a year and day.
The prosecution of Morales resulted in the exoneration of Demetrius Smith, who was serving life in state prison for the murder -- a crime he did not commit.
United States Attorney Rod J. Rosenstein commended the DEA and Maryland Transportation Authority Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Sandra Wilkinson and Martin J. Clarke, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Joaquin F. Taitano Sentenced in U.S. District CourtRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that Defendant JOAQUIN TAITANO, age 35, from Yigo, was sentenced on December 6, 2013, in the District Court of Guam, to 30 months incarceration, three years supervised release, and 100 hours community service for Conspiracy to Distribute less than five grams of methamphetamine. TAITANO was charged in an indictment on April 27, 2013, with Possession of Methamphetamine with Intent to Distribute, in violation of Title 21, U.S.C. § 841(a)(1). He pled guilty on June 28, 2011.
The investigation was conducted by Task Force Agents from the Superior Court’s probation office assigned to the Drug Enforcement Administration. The case was handled by Assistant U.S. Attorney Clyde Lemons.Jefferson Davis County Man Sentenced to Ten Years in Prison on Federal Gun ChargesRead the Press Release
Hattiesburg, Miss - On Friday, December 6, 2013, Dennis Earl Smith, Jr. was sentenced by U.S. District Judge Keith Starrett to the maximum penalty of 120 months in federal prison followed by three years of supervised release for possession of a firearm by a convicted felon, announced U.S. Attorney Gregory K. Davis and Phillip Durham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Smith was also ordered to pay a $3,000 fine.
This case was the result of an investigation by the Lamar County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Annette Williams.###
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
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or e-mail it to:
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Jackson Man Pleads Guilty to Federal Civil Rights Charge of Desecrating Religious ParaphernaliaRead the Press Release
Jackson, TN – Justin Shawn Baker, 25, of Jackson, TN, pleaded guilty today to violating the civil rights of students and faculty of the Margolin Hebrew Academy by defacing a Torah and religious prayer books, announced U.S. Attorney Edward L. Stanton III.
According to information contained in the indictment and facts revealed during today’s plea hearing, on or about January 12, 2013, students and faculty of the Margolin Hebrew Academy were staying overnight at the Doubletree Hotel in Jackson en route to Gatlinburg, TN. While there, they used a meeting room at the hotel to conduct a Sabbath worship service. A Torah, religious books, and musical instruments were left in the meeting room overnight with the intention of continuing worship services on the following morning.
The facts presented today further revealed Baker admitted that while employed as a security guard at the hotel, he discovered the items in the room, and defaced the Torah, the prayer books, and the musical instruments with profanity, anti-Semitic phrases, and Satanic writing. He also admitted to spitting on the Torah. Photographic evidence presented during the hearing confirmed that the Torah was defaced with profanity and phrases including “Hail Satan.”
“Freedom of religion and the freedom to practice it without harassment are bedrock principles upon which our nation was founded,” said U.S. Attorney Stanton. “Baker’s offensive acts represent an attack upon the rights and freedoms enjoyed by every citizen, which generations of Americans fought and died to ensure and protect.”
This case was investigated by the FBI, and is being prosecuted by Executive Assistant U.S. Attorney Larry Laurenzi and Trial Attorney Douglas Kern of the Civil Rights Division’s Criminal Section.Hogsett Announces Sentencing of Australian Man in Prosecution of International Child Exploitation ConspiracyRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced this morning the sentencing of an Australian man who exploited a young boy in a scheme that stretched across three continents. Peter Truong, age 36, an Australian citizen, along with previously-sentenced defendant Mark J. Newton, age 42, an American citizen living in Australia, orchestrated the abuse of the young child at the hands of a number of other men around the world. In a hearing before U.S. District Judge Sarah Evans Barker, Truong was sentenced to 30 years in prison.
“This young child endured a nightmare that stretched over one year and three continents, including some of the most heinous acts of exploitation that this office has ever seen,” Hogsett said. “Through the tireless work of our Project Safe Childhood team, this child has been rescued and these men are facing what amounts to effective life sentences.”
Newton and Truong, who were living in Queensland, Australia, were the legal parents of a boy (“Victim 1”) who was five to six years of age during the events described in the federal charges. Between 2010 and 2011, Newton and Truong traveled to the United States, and elsewhere, with Victim 1 to meet with other men, allegedly including John R. Powell, age 41, a resident of Florida, and Jason Bettuo, age 36, a resident of Illinois, so that these persons could use high definition digital cameras to record the sexual abuse of Victim 1.
These instances allegedly included a September 2010 meeting with Powell, in which Newton and Truong allowed him to engage in sexual conduct with Victim 1 and produce child pornography of the encounter. In April 2011, they traveled with Victim 1 to San Francisco, at which time Powell and Bettuo allegedly engaged in sexual conduct with the child and produced additional child pornography.
On one occasion, Newton and Truong allowed a man, allegedly Powell, to travel to Australia and visit them at their home. During this visit, Powell was given access to Victim 1 and would allegedly sexually exploit the child and create child pornography. Court documents also indicate that Newton and Truong traveled to France for a “vacation” on at least one occasion, inviting Powell to meet with them who then engaged in sexual conduct with Victim 1, which was again video recorded. The child pornography was then brought back to the United States.
Over the course of this scheme to sexually exploit Victim 1, Newton and Truong were also found to have engaged in a conspiracy to transport the child pornography produced during these encounters to individuals around the world, including individuals in Anderson, Indiana, and Arlington, Virginia. Powell is also alleged to have participated in this scheme. It was this trafficking of materials that alerted United States Postal Inspectors and Indiana investigators to the case, launching the two year investigation of Newton, Truong, Powell, Bettuo, and others.
This case is the result of the investigative efforts of the United States Postal Inspection Service to target individuals who use the US Mail and the Internet to sexually exploit children. They were assisted locally by the Indiana Internet Crimes Against Children Task Force, and received significant help from the Queensland Police Service, Task Force Argos in Australia.
According to Senior Litigation Counsel Steven D. DeBrota and Assistant U.S. Attorney A. Brant Cook, who along with the Criminal Division’s Child Exploitation and Obscenity Section Trial Attorney Michael Grant are prosecuting these cases for the government, Truong was also sentenced to 10 years of federally-supervised release. Prosecutors said that defendant Bettuo has filed a petition in federal court expressing his intent to enter a plea of guilty, and Powell’s case is still pending as he awaits trial.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Hogsett pointed out that in the last Project Safe Childhood reporting year, the U.S. Attorney’s Office prosecuted 52 defendants in Indiana, an increase of 37% over the prior year, and 49 defendants were convicted and sentenced.
The greatest measure of the PSC program’s impact, however, is the identification and rescue of child victims of sexual exploitation and abuse. Over the last year, the U.S. Attorney’s Office successfully identified more than 120 child victims, including minors in Indiana, numerous places in the United States, Canada, Switzerland, and other countries around the world.
Led nationally by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An Information or Indictment is only a charge and is 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.
Government Intervenes in False Claims Lawsuit Against Ipc the Hospitalist Co. Inc. Alleging Overbilling of Physician ServicesRead the Press Release
The government has intervened in a lawsuit against IPC The Hospitalist Co. Inc., and its subsidiaries (IPC), alleging that IPC submitted false claims to federal health care programs, the Justice Department announced today. IPC, based in North Hollywood, Calif., is one of the largest providers of hospitalist services in the United States, employing physicians and other health care providers who work in more than 1,300 facilities in 28 states. Hospitalists are physicians who work only in hospitals and other long-term care facilities, overseeing and coordinating inpatient care from admission to discharge.
The lawsuit alleges that IPC physicians sought payment for higher and more expensive levels of medical service than were actually performed – a practice commonly referred to as “upcoding.” Specifically, the lawsuit alleges that IPC encouraged its physicians to bill at the highest levels regardless of the level of service provided, trained physicians to use higher level codes and encouraged physicians with lower billing levels to “catch up” to their peers.
“We continue to be vigilant in our enforcement efforts to ensure that health care programs funded by the taxpayers pay only for appropriate costs,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery.
The lawsuit was filed by Dr. Bijan Oughatiyan, a former IPC physician, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue for false claims on behalf of the government and to share in any recovery. The Act also allows the government to intervene or take over the lawsuit, as it has done in this case, and to recover three times its damages plus civil penalties. The government has asked the U.S. District Court in Chicago for 120 days to file its own complaint stating its allegations.
This intervention illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The case was investigated by the Commercial Litigation Branch, Civil Division, U.S. Department of Justice and the U.S. Attorney’s Office for the Northern District of Illinois, with assistance from the Department of Health and Human Services Office of Inspector General.
The case is captioned United States ex rel. Oughatiyan v. IPC The Hospitalist Company Inc., et al., Civ. No. 09 C 5418 (N.D. Ill.). The claims asserted against IPC are allegations only; there has been no determination of liability.Government Intervenes in False Claims Lawsuit Against IPC the Hospitalist Company, Alleging Overbilling of Physician ServicesRead the Press Release
CHICAGO ― The United States has intervened in a civil lawsuit against Californiabased IPC The Hospitalist Company, Inc., and its subsidiaries (IPC), alleging that IPC submitted false claims to federal health care programs, the U.S. Attorney’s Office and the Justice Department announced today. The lawsuit, which was unsealed Friday in U.S. District Court in Chicago, alleges that IPC violated state and federal False Claims Acts by knowingly engaging in systematic overbilling for hospital evaluation and management services billed to Medicare, Medicaid, and other federal health benefit programs.
IPC, based in North Hollywood, Calif., is one of the largest providers of hospitalist services in the United States, employing physicians and other health care providers who work in more than 1,300 facilities in 28 states. Hospitalists are physicians who work only in hospitals and other long-term care facilities, overseeing and coordinating inpatient care for patients from admission to discharge.
The lawsuit alleges that IPC physicians sought payment for higher and more expensive levels of medical service than were actually performed ― a practice commonly referred to as “upcoding.” Specifically, the lawsuit alleges that IPC encouraged its physicians to bill at the highest levels regardless of the level of service provided, trained physicians to use higher level codes and encouraged physicians with lower billing levels to “catch up” to their peers.
“We continue to be vigilant in our enforcement efforts to ensure that health care programs funded by the taxpayers pay only for appropriate costs,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery.
The lawsuit was filed under seal in 2009 by Dr. Bijan Oughatiyan, of Dallas, who worked as a hospitalist for IPC in San Antonio from 2003 to 2008, under the qui tam or whistleblower provisions of the False Claims Act. The federal law and similar state statutes permit private individuals to sue for false claims on behalf of the government and to share in any recovery. The Act also allows the government to intervene or take over the lawsuit, as it has done in this case, and to recover three times its damages plus civil penalties ranging from $5,500 to $11,000 for each false claim submitted.
The government investigated Dr. Oughatiyan’s allegations and filed a notice of intervention, asking at the same time that the complaint be unsealed. Chief U.S. District Judge Ruben Castillo last week ordered the case unsealed and granted the government’s request for 120 days to file its own complaint against IPC and related defendants, announced Zachary T. Fardon, United States Attorney for the Northern District of Illinois.
According to Dr. Oughatiyan’s 2009 complaint, more than half of IPC’s revenues ― more than $125 million in 2008 alone ― came from government medical insurers, including Medicare and Medicaid. “IPC’s upcoding scheme has caused those Government health insurers to overpay millions of dollars to IPC, and has adversely impacted patient care,” the suit states.
The lawsuit alleges that IPC directed and encouraged its physicians to engage in systematic overbilling of the codes submitted to Medicare, Medicaid, and other health benefit programs for evaluation and management procedures such as admission, subsequent hospital visits, and discharge of patients. Based on IPC=s regular and detailed monitoring of the codes billed by individual physicians, the lawsuit alleges that IPC was aware that its physicians were using the highest level billing codes (those which require the most work and are reimbursed at the highest amounts) at rates far in excess of what would normally be expected. It further alleges that IPC knew and/or should have known that its physicians could not have actually been performing the services at the levels for which claims were submitted.
This intervention illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The matter is being jointly handled by the U.S. Attorney’s Office for the Northern District of Illinois and the Civil Frauds Section of the Commercial Litigation Branch of the Justice Department’s Civil Division, with assistance from the U.S. Department of Health and Human Service’s Office of Inspection General, the Office of Personal Management’s Office of Inspector General, and the Railroad Retirement Board’s Office of Inspector General. The government is being represented by Assistant U.S. Attorney Eric Pruitt and DOJ Senior Trial Counsel Elizabeth Rinaldo.
The case is captioned United States ex rel. Oughatiyan v. IPC The Hospitalist Company, Inc., et al., No. 09 C 5418 (N.D. Ill.). The claims asserted against IPC are allegations only, and there has been no determination of liability. In a civil case, the government has the burden of proving the allegations by a preponderance of the evidence.
Glendale Man Who Admitted Hacking into Hundreds of Computers in ‘Sextortion’ Case Sentenced to Five Years in Federal PrisonRead the Press Release
LOS ANGELES – A Glendale man who hacked into hundreds of online accounts and victims’ computers, using extortion to coerce women into showing their naked bodies, was sentenced today to 60 months in federal prison.
Karen “Gary” Kazaryan, 27, was sentenced by United States District Judge George H. King, who said the defendant was a “cyber-terrorist.” Judge King remanded Kazaryan into custody at the conclusion of the sentencing hearing.
Kazaryan pleaded guilty in July to felony counts of computer hacking and aggravated identity theft.
In sentencing papers that recommended a six-year prison term, prosecutors wrote: “Kazaryan is a sexual cyber terrorist. He hacked into hundreds of victims’ email, Facebook, and Skype accounts using their usernames and passwords or password reset questions. He then methodically searched their accounts for naked pictures, passwords, and the contact information of their friends. He had two goals every time that he accessed these accounts: get more naked pictures in any way he could, and get more victims.”
According to court documents, Kazaryan gained unauthorized access to – meaning he hacked into – online accounts. In some cases, he obtained naked pictures from those accounts and then extorted the victims to provide additional photos and videos. If they refused, he posted the original pictures on the Internet. In other cases, Kazaryan posed as young women and asked their friends to provide naked photos.
“His victims were devastated and felt like they had been raped,” according to the sentencing memorandum. “They continue to be thoroughly traumatized by his criminal conduct.”
The investigation was conducted by the Federal Bureau of Investigation.
“Sextortion” is a type of extortion or blackmail of a victim who is usually asked for a nude image. The perpetrator typically threatens to publicly release a nude image unless a victim performs a sexual act or complies with other demands. To avoid become a victim, everyone should be prudent when posting images online or to any wireless communication (computer, phone, tablet), especially if the images have private or compromising content. Victims who receive extortionate threats or whose personal accounts have been compromised are urged to contact a parent, trusted adult or law enforcement, since the situation will only worsen. As always, computer users are warned to ensure their passwords are difficult for others to guess, avoid opening unverified attachments, and use reliable anti-virus software with updated definitions. Lastly, computer users should cover their webcam when it’s not in use.
Release No. 13-142
Gary City Councilman Charged by InformationRead the Press Release
Hammond, Indiana - United States Attorney David Capp announced the filing of a two count Information against Gary City Councilman Ronier Scott. Scott, 42, of Gary, was charged with willfully failing to file income tax returns for the 2008 and 2009 calendar years.Scott signed a plea agreement that was filed in conjunction with the Information.
These charges were filed as a result of an investigation by the Internal Revenue Service.This case is being prosecuted by Assistant United States Attorneys Gary Bell.
The United States Attorney's Office emphasized that an Information is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Gang Member Sentenced in Dodge City Racketeering CaseRead the Press Release
WICHITA, KAN. B A Dodge City gang member has been sentenced to 10 years on a conspiracy charge in a federal racketeering case, U.S. Attorney Barry Grissom said today.
Eusebio Sierra-Medrano, 33, Dodge City, Kan., was sentenced Monday in U.S. District Court in Wichita. He had pleaded guilty to one count of conspiracy to commit crimes under the federal Racketeering Influenced and Corrupt Organizations Act. In his plea, he admitted that from 2008 to May 2012 he participated in a criminal conspiracy in Dodge City involving members of the Norteno street gang and their affiliates, the Diablos Viejos and Los Carnales Chingones. Sierra-Medrano was a member of the Diablos Viejos.
On March 29, 2010, he and fellow gang members assaulted a Sureno gang member named Jose Arreola. They encountered Arreola at a convenience store at 400 E. Wyatt Earp in Dodge City. After a fellow gang member attacked Arreola with the handle of a windshield wiper, Sierra-Medrano joined in with a knife. He stabbed Arreola multiple times. The stabbing was in retaliation for the prior stabbing of two Nortenos.
On the same day as the stabbing, Sierra-Medrano was found to be in possession with intent to distribute cocaine. In his plea, he admitted that during that time he was distributing cocaine he obtained from California. The stabbing and the drug trafficking helped him to maintain his position with the Norteno enterprise.
Sierra-Medrano was one of 23 Norteno members indicted in May 2012. It was only the second time a federal RICO Act indictment (Racketeer Influenced and Corrupt Organizations Act) had been filed in Kansas. So far, 21 defendants have been convicted. Defendants Adam Flores and Jayson Vargas are awaiting trial.
Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff=s Office, the Ford County Attorney’s Office, the Kansas Bureau of Investigation, Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney Aaron Smith for their work on the case.
Former Ripley Police Officer Sentenced to Federal Prison for Child Pornography OffenseRead the Press Release
George Michael Puskas II told police he took pornographic pictures during relationship with a 16-year-old minor
CHARLESTON, W.Va. – George Michael Puskas II, of Ripley, was sentenced today to one year and one day in prison, followed by 10 years of supervised release for a child pornography offense, U.S. Attorney Booth Goodwin announced. Puskas, a former police officer in Ripley, previously pleaded guilty in July to possession of child pornography. The sentence was handed down by United States District Judge John T. Copenhaver, Jr. in Charleston.
In March 2010, Puskas, 31, established a sexual relationship with a then 16-year-old minor. At the time of the relationship, Puskas produced images and a video of the minor having sex or performing sex acts. Puskas produced a video of child pornography using a police department-issued digital camera. Puskas also used a cellphone to create images of child pornography. On September 7, 2011, Puskas possessed between 10 and 150 images of child pornography.
Puskas also told police that he maintained a relationship with the minor up until the time the individual turned 18 years old. On September 14, 2011, Puskas sent the individual an image that showed the two of them having sex.
On April 6, 2012, the West Virginia Internet Crimes Against Children Task Force executed a federal search warrant and seized a computer, a flash drive, and other items that Puskas used to produce child pornography. Puskas told police that he produced and possessed images of child pornography.
Puskas, who was an officer with the department at the time he committed the federal felony, resigned from the Ripley Police Department in May 2012.Upon completion of his prison term, Puskas will be placed on supervised release for 10 years. In addition, he will be required to register as a sex offender for the rest of his life.
The West Virginia Internet Crimes Against Children Task Force conducted the investigation. Assistant United States Attorney Lisa Johnston handled the prosecution.
This case was prosecuted as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Former Real Estate Investor Sentenced to 5 Years in Prison for Bank Fraud and Money LaunderingRead the Press Release
Orlando, Florida – U.S. District Judge Gregory A. Presnell today sentenced James Olivos (47, Lake Mary) to 5 years in federal prison for bank fraud and money laundering. As part of his sentence, the court also entered a money judgment in the amount of $2,866,121.39, the proceeds of the fraud scheme. Olivos pleaded guilty on September 18, 2013.
According to court documents, between March 2003 and November 2007, Olivos engaged in a scheme wherein he recruited other individuals ("straw purchasers") to purchase expensive homes, which they could not afford. Olivos prepared loan applications for these straw purchasers, which grossly overstated their incomes and gave false employment histories. Additionally, these applications stated that these homes would be used as primary residences, but Olivos had actually told these buyers that the homes would be investments and that he would find renters to cover the mortgage payments. Further, in order to increase his profits, Olivos convinced the sellers of the homes to inflate the sales prices by stating additional money would be necessary for home improvement. Olivos would then split the proceeds of the sales with the sellers. As a result of this fraud, Olivos caused a total loss to the lenders of approximately $3.2 million dollars.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Vincent S. Chiu.
Former Doctor Sentenced to Home Detention for Health Care Fraud ConvictionsRead the Press Release
BUFFALO, N.Y.---U.S. Attorney William J. Hochul, Jr. announced that former medical doctor Daniel C. Gillick, 63, of Youngstown, N.Y., who previously pleaded guilty to obtaining controlled substances by fraud and health care fraud, was sentenced today to 6 months of home detention and 2 years’ probation. As a part of the plea, the defendant surrendered his medical license.
Assistant U.S. Attorney Timothy C. Lynch and Maura K. O’Donnell, who handled the case, stated that between August 2011 and September 7, 2011, the defendant was employed as an emergency room physician at Schuyler Hospital. During that time, Gillick devised a scheme whereby on September 7, 2011, his then-girlfriend, Christine Guilfoyle, reported to the emergency room at Schuyler Hospital and pretended to suffer from a medical condition known as Trygeminal Neuralgia. The defendant then performed an apparent examination of her, fraudulently diagnosed her as suffering from Trygeminal Neuralgia and issued a prescription to her for Dilauded, a controlled substance.
In reality, Gillick?s girlfriend was not suffering from this condition, and had no medical need for the drug Dilaudid. In participating in this illegal scheme, the defendant defrauded Schuyler Hospital and also aided and abetted his former girlfriend in obtaining a controlled substance by fraud.
“This Office has previously spoken about the need for all segments of the community to understand and help combat the dangers associated with the illegal trafficking in painkillers,” said United States Attorney Hochul. “Doctors and other medical professionals need to also understand that this Office will not hesitate to bring criminal charges against them when warranted by the facts and the law.”
On November 22, 2013, U.S. Magistrate Judge Hugh B. Scott sentenced Christine Guilfoyle to time-served for her misdemeanor conviction for possessing cocaine base.
These cases are the result of an investigation on the part of Special Agents of the United States Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, the New York State Police, under the direction of Major Michael Cerretto, Customs and Border Protection, under the direction of James Engleman, Director of Field Operations, The New York State Attorney General Medicaid Fraud Control Unit, the Amherst Police Department, under the direction of Chief John Askey, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Lancaster Police Department, under the direction of Chief Gerald Gill, the Erie County Sheriff?s Department, under the direction of Sheriff Timothy Howard, the Depew Police Department, under the direction of Chief Stan Carwile, and the Niagara County Sheriff?s Drug Task Force, under the direction of Sheriff James Votour.
Former Doctor Sentenced to Home Detention for Health Care Fraud ConvictionsRead the Press Release
BUFFALO, N.Y.---U.S. Attorney William J. Hochul, Jr. announced that former medical doctor Daniel C. Gillick, 63, of Youngstown, N.Y., who previously pleaded guilty to obtaining controlled substances by fraud and health care fraud, was sentenced today to 6 months of home detention and 2 years’ probation. As a part of the plea, the defendant surrendered his medical license.
Assistant U.S. Attorney Timothy C. Lynch and Maura K. O’Donnell, who handled the case, stated that between August 2011 and September 7, 2011, the defendant was employed as an emergency room physician at Schuyler Hospital. During that time, Gillick devised a scheme whereby on September 7, 2011, his then-girlfriend, Christine Guilfoyle, reported to the emergency room at Schuyler Hospital and pretended to suffer from a medical condition known as Trygeminal Neuralgia. The defendant then performed an apparent examination of her, fraudulently diagnosed her as suffering from Trygeminal Neuralgia and issued a prescription to her for Dilauded, a controlled substance.
In reality, Gillick?s girlfriend was not suffering from this condition, and had no medical need for the drug Dilaudid. In participating in this illegal scheme, the defendant defrauded Schuyler Hospital and also aided and abetted his former girlfriend in obtaining a controlled substance by fraud.
“This Office has previously spoken about the need for all segments of the community to understand and help combat the dangers associated with the illegal trafficking in painkillers,” said United States Attorney Hochul. “Doctors and other medical professionals need to also understand that this Office will not hesitate to bring criminal charges against them when warranted by the facts and the law.”
On November 22, 2013, U.S. Magistrate Judge Hugh B. Scott sentenced Christine Guilfoyle to time-served for her misdemeanor conviction for possessing cocaine base.
These cases are the result of an investigation on the part of Special Agents of the United States Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, the New York State Police, under the direction of Major Michael Cerretto, Customs and Border Protection, under the direction of James Engleman, Director of Field Operations, The New York State Attorney General Medicaid Fraud Control Unit, the Amherst Police Department, under the direction of Chief John Askey, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Lancaster Police Department, under the direction of Chief Gerald Gill, the Erie County Sheriff?s Department, under the direction of Sheriff Timothy Howard, the Depew Police Department, under the direction of Chief Stan Carwile, and the Niagara County Sheriff?s Drug Task Force, under the direction of Sheriff James Votour.
Former Defense Contractor Pleads GuiltyRead the Press Release
CHARLOTTESVILLE, VIRGINIA – A former contractor for the Department of Defense pled guilty today in the United States District Court for the Western District of Virginia in Charlottesville to charges related to the removal of classified materials.
Bruce Schliemann, 50, of Austin, Texas, waived his right to be indicted and pled guilty today to a one-count Information charging him with the unauthorized removal and retention of classified documents. At sentencing, he faces a maximum possible penalty of up to one-year in prison and/or a fine of up to $100,000.
“Protecting the integrity of classified documents is crucial to our national security,” United States Attorney Timothy J. Heaphy said today. “Defendant Schliemann was a decorated Navy Seal who knew the importance of protecting classified information. Nonetheless, he misused classified information, and then tried to cover up his crime. We will do all we can to identify breaches of national security like this one and hold the offenders responsible. ”
According to a statement of facts filed today in court, in 2010, Schliemann, a retired Navy Seal, was working as an employee for a Department of Defense contractor in the Southern District of California in San Diego.
In April 2010, Schliemann knowingly downloaded classified information from a classified computer in a secure facility to a personal thumb drive. The defendant then removed the thumb drive from the secure facility and transferred those classified files to the laptop computer that had been issued to him by his employer. After removing the classified markings, Schliemann then emailed the classified material to employees of another defense contractor located in the Western District of Virginia. The employees of this second defense contractor subsequently then transmitted the classified information to a number of unauthorized and un-cleared persons in several locations.
During September 2010, Schliemann found out he was being investigated for his actions and consulted with a computer-savvy friend for assistance in “wiping” the hard drive of his laptop computer. After wiping the hard drive, Schliemann physically destroyed the hard drive and thumb drive that held the classified information.
In addition, when approached by agents in September 2010, Schliemann lied about a number of facts, including telling the agents he obtained the classified information by “digging around on the internet.” The defendant also specifically denied removing the classified information from the secure facility in San Diego.
The investigation of the case was conducted by the Department of Homeland Security Investigations [HIS] and the Defense Criminal Investigative Service. Assistant United States Attorney Stephen Pfleger is prosecuting the case for the United States.
Former CFO of Emporia Company Pleads Guilty to Embezzling $265,927Read the Press Release
TOPEKA, KAN. - The former chief financial officer for a manufacturing firm in Emporia has pleaded guilty to embezzling more than $265,927 from the company, U.S. Attorney Barry Grissom said today.
Sandra Moore, 58, Emporia, Kan., pleaded guilty Monday to one count of embezzlement. In her plea, she admitted the crime occurred beginning in 2008 while she was CFO of Sauder Custom Fabrication, Inc., in Emporia, Kan.She devised a variety of schemes to divert money from her employer’s accounts to her own including:
- Making unauthorized transfers from the company’s disbursement account to her personal account at ESB Financial in Emporia.
- Issuing unauthorized checks and depositing them into her personal account.
- Issuing unauthorized checks to repay loans she obtained from her 401K account.
Using those methods, she embezzled a total of $265,927 from the company.
Sentencing is set for March 3. She faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Grissom commended the FBI and Assistant U.S. Attorney Richard Hathaway for their work on the case.Former Bend Attorney Pleads Guilty to $1.1 Million FraudRead the Press Release
EUGENE, Ore. – Today, Bryan W. Gruetter, 55, of Bend, Oregon, pleaded guilty to one count of conspiracy to commit wire fraud before U.S. District Judge Michael McShane. In court, Gruetter admitted to diverting more than $1.1 million of client funds.
According to court documents, Gruetter was a personal injury attorney with offices in Bend and Portland, Oregon. As part of his guilty plea, Gruetter admitted that he and others illegally diverted more than $1.1 million in client settlement funds via interstate wire transfers. He further admitted that he and others used his clients’ money to pay for personal and business expenses rather than to pay the clients or to pay the clients’ legal, medical, insurance, or other associated costs as promised. On February 3, 2012, the Oregon State Bar took custody of defendant’s law practice, and on March 9, 2012, defendant resigned his law license, desiring not to contest allegations that he neglected clients’ legal matters, failed to communicate with clients, and failed to deliver funds to clients.
Sentencing is set for March 17, 2014, at 9 a.m.before Judge McShane. The maximum penalty for conspiracy to commit wire fraud is 20 years in prison and a $250,000 fine.
This case was investigated by the FBI and IRS-CI and is being prosecuted by Assistant U.S. Attorney Scott E. Bradford.
First Public Hearing of the American Indian and Alaska Native Children Exposed to Violence Task Force Held in Bismarck, N.D.Read the Press Release
The Attorney General’s Advisory Committee of the Task Force on American Indian/Alaska Native Children Exposed to Violence held its first public hearing today in Bismarck, N.D., convening tribal researchers, advocates and local community members to discuss domestic violence and child physical and sexual abuse in Indian Country.
The task force is comprised of a federal working group that includes U.S. Attorneys and officials from the Departments of the Interior and Justice and an advisory committee of experts on American Indian studies, child health and trauma and child welfare.
“Today represents an important step in protecting American Indian and Alaska Native children,” said Associate Attorney General Tony West. “This task force has already begun addressing children’s exposure to violence in tribal communities in ways that recognize the unique government-to-government relationship between the United States and tribes, and it will continue to develop approaches that will help us protect our children.”
“The problem of American Indian and Alaska Native children’s exposure to violence is complex and widespread and can have devastating consequences for these children,” said Assistant Attorney General for the Office of Justice Programs Karol V. Mason. “I’m pleased that this group of experts will help us understand the challenges before us and give us the information we need to reduce the incidence of violence and trauma among native children.”
During the hearing, experts on the trauma of sexual abuse of American Indian children discussed their experiences and recommended ways to improve the identification, assessment and treatment of children. Other topics addressed included violence in the home, healing from trauma and programs for children exposed to violence in Indian Country and urban communities.
In addition to today’s hearing, the advisory committee will convene three public hearings in early 2014 in Phoenix, Fort Lauderdale, Fla., and Anchorage, Alaska, focusing on violence in homes, schools and communities in Indian country. The 13-member advisory committee is co-chaired by former U.S. Senator Byron Dorgan and Iroquois composer and singer Joanne Shenandoah. The advisory committee will draw upon research and information gathered through public hearings to draft a final report of policy recommendations that it will present to Attorney General Eric Holder by late 2014.
Attorney General Holder created the task force this year as part of his Defending Childhood initiative to prevent and reduce children’s exposure to violence as victims and witnesses. The task force is also a component of the Justice Department’s ongoing collaboration with leaders in American Indian and Alaska Native communities to improve public safety.
For more information about the advisory committee and public hearings, please visit www.justice.gov/defendingchildhood.Federal Jury Finds Nashville Man Guilty of Bank FraudRead the Press Release
Keith Churn, 44, of Nashville, Tenn., was found guilty of bank fraud by a federal jury on Friday, December 6, announced David Rivera, United States Attorney for the Middle District of Tennessee.Churn was convicted of seven counts of bank fraud in connection with a scheme to defraud a federally-insured financial institution that had issued loans for the construction of modular homes in Nashville and Franklin, Tennessee. Churn was found not guilty of four additional counts of bank fraud.
“The jury’s verdict confirms that those who seek to profit through fraudulent financial schemes will be held responsible, “said U.S. Attorney David Rivera. “This office and our law enforcement partners remain dedicated to ferreting out and prosecuting all varieties of financial fraud.”
“The Secret Service will continue to aggressively investigate financial crimes, to include mortgage fraud schemes such as the one perpetrated by Mr. Churn, in order to support the integrity of our nation’s financial infrastructure and to bring to justice those that use the financial system to victimize others,” said U.S. Secret Service Special Agent in Charge Todd Hudson.
Evidence at trial showed that Churn made numerous false statements to a Tennessee bank in order to induce additional draws on certain construction loans, the proceeds of which Churn transferred to a bank account under his control, as well as to conceal his scheme and to dissuade the bank from calling these loans. Churn submitted false invoices from a modular home manufacturer, falsely representing that down payments had been made and that modular units had been ordered, and misrepresented the status of construction that had been done to date. The evidence also demonstrated that Churn failed to fulfill his promises to make interest payments on behalf of certain individuals who had applied for the construction loans at issue, causing these loans to be foreclosed.
Churn will be sentenced by United States District Court Chief Judge William J. Haynes, Jr. on a date yet to be determined. He faces a maximum penalty of 30 years in prison for each count, as well as fines and forfeiture of the money derived from the fraudulent scheme.
The U.S. Secret Service conducted this investigation. Assistant U.S. Attorneys Sandra G. Moses and William F. Abely prosecuted the case.
Eighty-Four, Pa. Man Pleads Guilty in Oxycodone Trafficking SchemeRead the Press Release
PITTSBURGH - A Washington County resident pleaded guilty in federal court to a charge of violating federal narcotic laws, United States Attorney David J. Hickton announced today.
Andrew Brown, 23, of Eighty Four, Pa., pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the Court was advised that Brown conspired with others to possess with the intent to distribute and distribute oxycodone, a Schedule II controlled substance. In that regard, the Court learned that Brown passed a number of fraudulent oxycodone prescriptions at pharmacies in the Western District of Pennsylvania. Brown then provided the obtained oxycodone to charged co-defendant David Best, who later resold this oxycodone. David Best has pleaded not guilty to the charges against him.
Judge Schwab scheduled sentencing for May 13, 2014, at 9 a.m. The law provides for a total sentence of up to 20 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Drug Enforcement Administration conducted the investigation that led to the prosecution of Andrew Brown.
East St. Louis Man Sentenced to Prison for Revocation of Supervised Release and for Distribution of HeroinRead the Press Release
An East St. Louis, Illinois, man was sentenced to a prison term in federal district court upon revocation of supervised release and for distribution of heroin on December 6, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Delano Perry, 41, of East St. Louis, Illinois, was sentenced in federal district court in East St. Louis to a total of 33 months in prison, to be followed by 3 years of supervised release, a $100 special assessment, and a fine of $200, following his plea of guilty, on August 1, 2013, to an Indictment charging him with Distribution of Heroin and upon a plea of guilty on December 6, 2013, to violating the terms of his supervised release. The charges relate to an incident that occurred on June 6, 2013, in East St. Louis, Illinois, when Perry sold approximately 24 grams of heroin to a confidential informant who was working in conjunction with agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Perry, who was previously convicted of Distribution of Cocaine Base on July 17, 1998, was released from prison on March 1, 2012, and began serving a term of supervised release. He was on supervised release when he committed the instant crime of Distribution of Heroin. The judge noted that Perry began his term of supervised release successfully, but had fallen back to crime in part to pay the funeral expenses of his 20-year-old son, who was murdered in 2012.
The case was investigated by members of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorney Stephen B. Clark.
Duck Valley Man Sentenced for Failing to Register as Sex OffenderRead the Press Release
BOISE — Martin Daniel Atkins, Jr., 30, of Owyhee, Nevada, was sentenced today to 30 months in federal prison followed by five years of supervised release for failure to register as a sex offender, and for violating his supervised release on a prior conviction for the same offense, U.S. Attorney Wendy J. Olson announced. He pleaded guilty on July 17, 2013.
According to court documents, Atkins was required to register as a sex offender because of his guilty plea in 2005 to two counts of sexual abuse of minor, involving children from the Duck Valley Indian Reservation. Upon his release from prison, Atkins began the registration process and reported that he was living at his stepmother's home on the Idaho side of the Duck Valley reservation. Investigators learned that Atkins had moved to Nevada and was later employed in Arizona and had failed to notify authorities. He pleaded guilty in 2011 to failing to register under the Sex Offender Registration and Notification Act and was sentenced to 21 months in prison.
Upon his release from custody in January 2013, Atkins returned to the Duck Valley reservation. He registered as a sex offender with the Elko County Sheriff’s Office in Nevada and reported that he would be living with his aunt. In late February 2013, federal probation officers went to Atkins’ aunt’s home and learned that he had not stayed there since he returned to the reservation. U.S. Marshals Service located Atkins in March and arrested him. He had been living at another location on the Duck Valley Indian Reservation.
Atkins was prosecuted for violating the Sex Offender Registration and Notification Act (SORNA), which was passed by Congress in 2006. The Act requires sex offenders to register and keep their registration current in each jurisdiction where they reside, are employed or are students. Violations of SORNA are prosecuted in federal court.
Donald William Forrest Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on December 6, 2013, before Chief U.S. District Judge Dana L. Christensen, DONALD WILLIAM FORREST, a 51-year-old resident of Butte, was sentenced to a term of:
- ison: 16 months
- ecial Assessment: $100
- pervised Release: 5 years
FORREST was sentenced in connection with his guilty plea to possession with the intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Bryan R. Whittaker, the government stated it would have proved at trial the following:
On August 23, 2011, a confidential informant (CI) met with FORREST at a gas station in Rocker to purchase methamphetamine. The CI had prearranged to meet FORREST at this location. The CI approached FORREST's 1992 two-tone grey and white Ford extended cab pickup truck and got inside. FORREST and the CI circled the parking lot for approximately two minutes. The CI paid FORREST $280 in exchange for two grams of methamphetamine. FORREST had the methamphetamine sitting on the center console of his truck as he had done in previous deals. FORREST gave the CI a Premium Blend red cigarette pack which contained approximately two grams of individually wrapped methamphetamine. The CI turned the cigarette pack and the methamphetamine over to law enforcement agents who were observing the transaction.
On August 29, 2011, the CI again met with FORREST in Rocker to purchase methamphetamine. The CI had prearranged to meet FORREST at this location. The CI approached FORREST's truck and got inside. The CI paid FORREST $280 in prerecorded U.S. currency in exchange for two grams of methamphetamine. FORREST counted the money and had the methamphetamine sitting on the center console of his truck. FORREST gave the CI a Camel cigarette pack which contained the two grams of individually wrapped methamphetamine. The CI turned the cigarette pack and the methamphetamine over to law enforcement agents. Multiple law enforcement agents witnessed the transaction. The CI also wore an electronic recording device which recorded the transaction between the CI and FORREST.
On September 7, 2011, the CI made arrangements with FORREST to meet with an undercover agent (UA) and sell him 6.5 grams of methamphetamine for $900. FORREST agreed to the sale and instructed the CI to have the UA meet him behind a store in Butte. The UA met with FORREST in the store's parking lot. FORREST told the agent that he was only able to get 2 grams of methamphetamine instead of the expected 6.5 grams. The agent purchased the 2 grams of methamphetamine from FORREST for $300. FORREST gave the agent an Old Gold cigarette pack that was sitting on the center console between them which contained two individually wrapped baggies inside. The transaction was electronically recorded and observed by multiple law enforcement agents.
On September 22, 2011, the agent again met with FORREST behind the store in Butte. The agent purchased what he thought to be 4.5 grams of methamphetamine from FORREST for $600. After the agent left the transaction, the methamphetamine was weighed at only 3.3 grams. The transaction was electronically recorded and observed by multiple law enforcement agents. The agent later called FORREST to complain about the missing amount of methamphetamine wherein FORREST apologized and promised to make it right.
On December 27, 2011, FORREST indicated to the agent that he could conduct a drug transaction for approximately 1 oz. of methamphetamine for $2,400. The agent instead offered to buy 1/2 oz. of methamphetamine for $1,300. The following day the agent met with FORREST at a saloon in Montana City. FORREST got into the agent's vehicle to conduct the transaction. FORREST pulled a plastic baggie from his left front shirt pocket and provided 1/2 oz. of methamphetamine to the agent for the agreed upon price. The transaction was electronically recorded and observed by multiple law enforcement agents.
On January 21, 2013, FORREST again met the agent at the saloon where he sold the agent approximately 2 oz. of methamphetamine for $4,800. The transaction was electronically recorded and observed by multiple law enforcement agents.
Law enforcement agents sent all the methamphetamine to the DEA laboratory for testing. A DEA chemist would have testified that the total amount of actual (pure) methamphetamine sold by FORREST to the CI and the agent was more than 68 grams
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that FORREST will likely serve all of the time imposed by the court. In the federal system, FORREST does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation, the Montana Division of Criminal Investigation, and the Southwest Montana Drug Task Force.
District Man Sentenced to 24 Years in Prison for 2006 Shoot-Out That Killed an Innocent Bystander-Gun Battle Unfolded in Parking Lot of Southeast Washington Apartment Complex-Read the Press Release
WASHINGTON – Dontrace Blaine, 26, formerly of Washington, D.C., was sentenced today to 24 years in prison on charges stemming from a gun battle in 2006 that led to the death of an innocent bystander, U.S. Attorney Ronald C. Machen Jr. announced.
Blaine was found guilty by a jury in September 2013, following a trial in the Superior Court of the District of Columbia, of second-degree murder while armed and possession of a firearm during a crime of violence. He was sentenced by the Honorable Robert E. Morin.
According to the government’s evidence, Blaine took part in a gun battle at 11 p.m. on Dec. 29, 2006 outside an apartment complex in the 2500 block of Pomeroy Road SE. During the gunfire, an innocent bystander, 25-year-old Adegoke Adenikinju, was struck in the chest by a stray bullet as he attempted to exit his vehicle in hopes of seeking cover. Mr. Adenikinju died in the parking lot from his injuries. Witnesses later identified Blaine as among the shooters.
In announcing the sentence, U.S. Attorney Machen commended the work of the officers, detectives and evidence technicians from the Metropolitan Police Department (MPD) who investigated the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Fern Rhedrick , Sandra Lane, Alesha Matthews Yette and Sharon Newman,; Litigation Technology Specialists Jeannie Latimore-Brown and Anisha Bhatia, and Investigative Analysts Lawrence Grasso and Zachary McMenamin. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Vinét Bryant, who prosecuted the case.
13-415Devils Lake Man Sentenced for Abusive Sexual ContactRead the Press Release
FARGO – U.S. Attorney Timothy Q. Purdon announced that on Dec. 9, 2013, Jerome Louis Blackbird, Jr., of Devils Lake, N.D., was sentenced before U.S. District Judge Ralph R. Erickson on a charge of abusive sexual contact.
Judge Erickson sentenced Blackbird, Jr. to 33 months’ imprisonment to be followed by five years of supervised release. Blackbird, Jr., was ordered to register as a sex offender and to pay a $100 special assessment to the crime victims fund.
On July 13, 2013, Blackbird, Jr., pleaded guilty to engaging in sexual contact with a minor child by intentionally touching the child’s genitalia and breasts through her clothing,
The case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Janice M. Morley prosecuted the case.
Corrupt Colombian Government Employee and Criminal Defense Attorney Convicted in Obstruction of Justice CaseRead the Press Release
Earlier today, Freddy Mauricio Tellez-Buitrago and Adriana Gonzalez-Marquez pled guilty before U.S. Magistrate Judge Cheryl M. Pollak at the federal courthouse in Brooklyn, New York, to obstruction of justice for stealing selling sensitive and confidential United States law enforcement information concerning prosecutions in the Eastern District of New York and selling that information to a narcotics trafficker in Colombia. When sentenced, both defendants face a maximum of twenty years' imprisonment and a fine of up to $250,000. Tellez-Buitrago has agreed to forfeit $30,000, and Gonzalez-Marquez has agreed to forfeit $50,000.
The guilty pleas were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York, and Brian R. Crowell, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division. The investigation was led by HSI in Bogota, Colombia, with assistance provided by HSI in New York, DEA in Bogota and New York, and local law enforcement authorities in Colombia.
“The defendants sought to undermine U.S. efforts to bring international narco-traffickers to justice, and traded on sensitive and confidential information on U.S. operations in exchange for money. Their convictions signify our pursuit of individuals who attempt to compromise the judicial process by obstructing justice here and in Colombia,” stated United States Attorney Lynch. “We will continue to rely on the success of the international cooperation between the United States and Colombia to pursue individuals who steal information that put the lives of law enforcement officers at risk.” Ms. Lynch extended her grateful appreciation to the Colombian National Police and the Colombian Attorney General's Office for their assistance in this case.
The defendants' convictions resulted from an investigation that revealed that, through his employment at the Colombian Attorney General's Office, Tellez-Buitrago had specialized access to law enforcement materials, including requests from the United States government for the extradition of alleged Colombian drug traffickers. The Colombian authorities treat such extradition requests as sensitive and confidential until the arrest of the individual whose extradition is sought. Tellez-Buitrago accepted bribes from criminal defense attorney Gonzalez-Marquez, a former prosecutor at the Attorney General’s Office in Colombia, in exchange for leaking documents relating to EDNY extradition requests for narcotics traffickers. Gonzalez-Marquez, in turn, sold the information to a narcotics trafficker in exchange for the equivalent of approximately $30,000 in U.S. dollars.
The government’s case is being prosecuted by Assistant United States Attorney Soumya Dayananda.
The Defendants:
ADRIANA GONZALEZ-MARQUEZ
Age: 33FREDDY MARQUEZ TELLEZ-BUITRAGO
Age: 34E.D.N.Y. Docket No. 12-687 (ERK)
Conspirator in Maryland Drug Ring Sentenced to 11 Years in PrisonRead the Press Release
Conspired to Distribute Over 1,500 Pounds of Marijuana and Launder Over $1 Million
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Mikhnail DelRosario, a/k/a Mickey, age 28, of Silver Spring, Maryland, today to 11 years in prison, followed by four years of supervised release, for conspiring to distribute more than 700 kilograms of marijuana and conspiring to commit money laundering. Chief Judge Chasanow also ordered that DelRosario forfeit $1 million, believed to be the proceeds of the drug and money laundering conspiracies.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his guilty plea and court documents, from March 2011 to December 2012, DelRosario conspired with Billymir Mancilla-Brevichet, Chamron Thach, Carlos Escobar, and others to distribute marijuana in the Montgomery County, Maryland area. From October 2012 through December 2012, Delrosario was intercepted on over seventy-five drug-related telephone conversations on Mancilla and Thach’s telephones, during which he discussed the sale of and arranged drug transactions involving marijuana.
Specifically, Mancilla acquired large amounts of high-quality marijuana from suppliers in California and elsewhere, and arranged for the transport of the marijuana by plane, car and mail to co-conspirators in Montgomery County, Maryland, including DelRosario. During the time of the conspiracy, DelRosario received 2 to 4 pound packages of marijuana from Mancilla at least two to three times per month. DelRosario also received packages of marijuana that he supplied to other members of the conspiracy on Mancilla’s behalf. DelRosario also sent couriers with currency to Mancilla in California to purchase marijuana from Mancilla. DelRosario paid Mancilla between $3,000 and $4,000 per pound of marijuana.
Mancilla’s co-conspirators also transported at least 100 pounds of marijuana at a time by car to a storage facility in Maryland, where Mancilla arranged for DelRosario and others, to pick up multiple pounds of marijuana for re-distribution. On at least five occasions, DelRosario traveled to California to receive marijuana and to transport drug proceeds in the form of bulk cash to Mancilla. DelRosario packaged and shipped the marijuana from Mancilla’s California residence to Maryland for redistribution.
During his participation in the conspiracy, DelRosario conspired to distribute between 700 and 1,000 kilograms of marijuana.
The conspirators also engaged in financial transactions that were designed to conceal the nature, location, source, ownership and control of the drug proceeds. For example, Mancilla arranged to receive payment for the marijuana he caused to be distributed by having drug customers deposit cash payments in amounts less than $10,000 into bank accounts that he controlled that were held in fake names and in the names of fake businesses. DelRosario and other co-conspirators, including Mancilla, Thach and Escobar, structured the financial transactions to evade the requirement that banks report transactions over $10,000 to the IRS, thereby concealing from the government large cash transactions by drug dealers.
Mancilla arranged for drug customers to mail drug proceeds from Maryland to him in California. Mancilla also had drug customers make payments to DelRosario and other co-conspirators in Maryland, who bundled the drug proceeds together in amounts ranging from $10,000 to $100,000, and arranged for individuals to transport the bulk cash by airplane from Maryland to Mancilla in California. DelRosario also made several trips by plane from Maryland to Mancilla in California with bulk cash.
For example, during the course of the conspiracy, DelRosario made two deliveries of currency to a cooperating informant totaling over $36,000. In October 2012, DelRosario provided $58,200 to Thach for payment to Mancilla for marijuana. DelRosario was responsible for acquiring and transporting at least $1,000,000 during the course of the conspiracy.
Billymir Mancilla-Brevichet, age 28, of Oakland, California, was previously sentenced to 90 months in prison and ordered to forfeit $278,618 seized from May to October, 2012. Co-conspirators Chamron Thach, a/k/a Sham, age 30, of Silver Spring, Maryland, and Carlos Salvador Escobar, a/k/a Esco, age 30, of Arlington, Virginia, were sentenced to eight years and three years in prison, respectively, for their participation in the drug and money laundering conspiracies. Six other conspirators pleaded guilty and were sentenced to between 4 years and 78 months in prison.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Christen A. Sproule and Mara Zusman Greenberg, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Boise Man Pleads Guilty in Illegal Gambling CaseRead the Press Release
BOISE – Skinner “Skip” Anderson, II, 57, of Boise, Idaho, pleaded guilty today to one count of misprision of a felony, U.S. Attorney Wendy J. Olson announced. Anderson appeared today before Chief U.S. Magistrate Judge Candy W. Dale at the federal courthouse in Boise.
At his change of plea hearing, Anderson admitted to having knowledge of an illegal gambling operation that was being run out of a house he owns located at 6655 W. Victory Road in Boise. Anderson further admitted to taking steps to conceal the illegal gambling operation and not reporting it to the proper authorities.
Anderson faces up to three years in prison, a maximum fine of $250,000, and not more than one year of supervised release. In a separate civil proceeding, the United States is seeking forfeiture of the residence where the illegal gambling operation occurred.
Sentencing is set for February 18, 2014, before Chief U.S. District Judge B. Lynn Winmill.
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 Force was assisted by Internal Revenue Service-Criminal Investigation.
Armed Career Criminal Exiled to over 24 Years in Prison for Being A Felon in Possession of A FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Stephen Sylvester Walker, age 31, of Baltimore, Maryland, today to 293 months in prison, followed by five years of supervised release, for being a felon in possession of a gun. Judge Bredar enhanced Walker’s sentence upon finding that Walker is an armed career criminal based on one previous first degree assault conviction and two previous narcotics convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore County State’s Attorney Scott Shellenberger; and Chief James W. Johnson of the Baltimore County Police Department.
According to evidence presented at Walker’s three day trial, on January 30, 2011 at approximately 2:30 a.m., Baltimore County Police officers received a dispatch call for an armed person near a Denny’s Restaurant in Parkville, Maryland. Officers testified that they went to the location and witnesses identified Walker as the armed person. An officer drew his weapon and approached Walker, ordering him to show his hands and get on the ground. Walker refused to comply and another officer finally got Walker on the ground and arrested him. As the officer was detaining Walker, he saw a semiautomatic handgun tucked into Walker’s waistband. The officers recovered the gun, which was loaded with ammunition and also had a round in the chamber.
Witnesses testified that after his arrest Walker looked at the first officer that approached him and said, “I should have smoked you when I had the chance.” During an earlier motions hearing in the case, witnesses testified that Walker also made statements threatening to harm the arresting officers and their families, and threatening the civilians in the area for “snitching.”
Judge Bredar found that Walker was not truthful when he falsely testified at trial that he did not have a firearm on his person, and that he did not know where the firearm came from.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore County Police Department and Baltimore County State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Michael C. Hanlon and Scott Lemmon, who prosecuted the case.
Alabama Man Pleads Guilty for His Role in Racially Motivated Cross BurningRead the Press Release
Thomas Windell Smith, 24, of Dothan, Ala., turned himself in and pleaded guilty in federal court on Friday, Dec. 6, 2013, to one count of conspiring to violate housing rights, the Justice Department announced today. The information charging Smith was unsealed today. The charge relates to his participation in a cross burning at the entrance to an African-American community in Ozark, Ala., on May 8, 2009, with a former KKK leader who was arrested and charged with a five-count indictment on Wednesday, Nov. 27, 2013.
During his plea, Smith admitted that he and a co-conspirator agreed to burn a cross together in order to intimidate the neighborhood’s African-American residents. Using materials from around his home, the co-conspirator constructed a wooden cross about six feet tall and wrapped cloth around the cross. The co-conspirator loaded the cross into Smith’s truck, and, with Smith driving while the co-conspirator provided directions, the two men transported the cross to a predominantly African-American residential neighborhood. They unloaded the cross at the entrance to the community, where the co-conspirator poured fuel on the cross, stood it up in view of several houses and set it on fire.
“The defendant’s crime illustrates the damage hate crimes can do to entire communities, making people feel unsafe in their own homes,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “We’d like to think these offenses are a thing of the past, but the reality is that they happen here in the 21st century. The Justice Department is committed to stamping them out.”
“This defendant not only committed a federal crime, but committed a contemptible action of hate,” said U.S. Attorney George L. Beck Jr. “Citizens in the Middle District of Alabama should not and will not tolerate such actions. I hope this prosecution sends a clear message that these hateful demonstrations will not be tolerated and will be prosecuted to the fullest extent of the law.”
Smith faces a statutory maximum penalty of 10 years in prison and a fine of up to $250,000.
This case was investigated by the Federal Bureau of Investigation, 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 department’s Civil Rights Division.