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17 January 2014
Wesley Allen Crossguns Final Co-defendant in Burglary Sentenced to PrisonRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, Montana, on January 16, 2014, before U.S. District Judge Brian M. Morris, WESLEY ALLEN CROSSGUSN, 25, of Browning, was sentenced to a term of 27 months imprisonment, three years supervised release, and a special assessment of $100.
Crossguns was sentenced in connection with his September 24, 2013, guilty plea to Burglary of a residence on the Blackfeet Indian Reservation. Crossguns' co-defendants have already pleaded guilty for their commission of the crime and received sentences of imprisonment.
In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government stated it would have proved that Wesley Allen Crossguns, Dustin Jay After Buffalo, and Michael Thomas Bad Old Man broke into a residence on the Blackfeet Indian Reservation during broad daylight. When inside, the defendants stole jewelry and ran from the residence when law enforcement arrived. Crossguns was the only defendant who escaped the scene. One of Crossguns' co-defendants threatened to kill law enforcement when apprehended.
In a sentencing memorandum recommending a guideline sentence of incarceration, Weldon told the Court, "Burglaries are a dangerous act. They are especially dangerous when a personal residence is involved." The Court sentenced Crossguns to the top of the range recommended under the Guidelines, with three years of supervised release to follow.
The case was investigated by the Bureau of Indian Affairs Office of Justice Services.
Week in Review – South BendRead the Press Release
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
LaShaun Murry, 33, of Michigan City, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of being a felon in possession of a firearm. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Drug Enforcement Administration.Sentencing has been set for 4/17/2014.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Silvino Alonso-Pineda, 37, of South Bend, Indiana pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of illegally re-entering the United States after being deported and having a prior aggravated felony as well as possessing cocaine with intent to distribute. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by U.S. Immigration and Customs Enforcement.Sentencing has been set for 4/23/2014.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
Vernado Malone, 37, of Indianapolis, Indiana pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of mail fraud and aggravated identity theft. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation .Sentencing has been set for 4/17/2014.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Taja Anderson, 25, of South Bend, Indiana was sentenced by District Judge Jon E. DeGuilio to 21 months imprisonment, 2 years supervised release and to pay $13,131 in restitution after pleading guilty to the felony offense of being an accessory after the fact to bank robbery.According to documents filed in this case, in April 2013, Anderson, fully aware of a bank robbery, aided bank robbers, including Kendra Winston, and attempted to prevent an arrest.Anderson drove with the other involved persons to a parking lot near the bank in downtown South Bend. After the robbery, Anderson went with the robbers to a casino to “clean” the money that was stolen from the bank. She also allowed the involved individuals to stay at her residence after the theft.Anderson accepted money as payment for her part in attempting to conceal the crime.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Jesse Barrett.
Kendra Winston, 25, of South Bend, Indiana was sentenced by District Judge Jon E. DeGuilio to 21 months imprisonment with 2 years supervised release and to pay $13,131.00 in restitution, after pleading guilty to the felony offense of with armed bank robbery.According to documents filed in this case, in April 2013, Winston aided in the robbery of a bank in South Bend, Indiana.Specifically, Winston drove with the robber and Taja Anderson to the bank in downtown South Bend on April 11, 2013. After the bank was robbed, Winston and the others involved drove away from the bank and Winston was to dispose of the vehicle. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Jesse Barrett.
Week in Review – HammondRead the Press Release
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
INDICTMENTS:
Robert Barker, 28, of Calumet City, Illinois, was charged with six counts of making false statements during the purchase of firearms and six counts of possession of a firearm by a convicted felon.These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Gerardo Mendez, 26, address unknown in Illinois, was charged with passing counterfeit obligations.This charge was filed as the result of an investigation by the United States Secret Service.This case has been assigned to and will be prosecuted by Assistant United States Attorney Randall Stewart.
Rita Law, 55, of Chicago, Illinois, was charged with two counts of human trafficking and servitude and one count of transporting for the purpose of prostitution. These charges were filed as the result of an investigation by the Federal Bureau of Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case has been assigned to and will be prosecuted by Assistant United States Attorney Susan Collins.
Edward Olszewski, of Hobart, Indiana, a defendant in the case US v Law et al., was charged with one count of transporting for the purpose of prostitution.This charge was filed as the result of an investigation by the Federal Bureau of Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case has been assigned to and will be prosecuted by Assistant United States Attorney Susan Collins.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
PLEAS:
Salvador Chavez, 34, of Chicago, Illinois, pled guilty before Chief Judge Philip Simon to the felony offense of conspiracy to participate in racketeering activity. Sentencing has been set for 6/20/14. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosive, the Federal Bureau of Investigation, the East Chicago Police Department and the Hammond Police Department.This case is being prosecuted by Assistant United States Attorney David Nozick.
Cedric Payton, 39, of Indianapolis, Indiana, pled guilty before Senior District Judge Rudy Lozano to the felony offense of possession of a firearm by a convicted felon.Sentencing has been set for 4/10/14.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force.This case is being prosecuted by Assistant United States Attorney Nicholas Padilla.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Demetrius Moore, 48, of Merrillville, Indiana, was sentenced by Chief Judge Philip Simon to 3 years of probation and $16,283.00 in restitution after pleading guilty to the felony offense of theft of government property.According to documents filed in this case, from January of 2009 through February of 2011, Moore periodically filed for unemployment benefits with the State of Indiana at a time he knew he was not legally eligible for benefits because he was employed. This case was the result of an investigation by the Department of Labor.This case was prosecuted by Assistant United States Attorney Randall Stewart.
Jose Ortiz, 32, of Chicago, Illinois, a defendant in the case US v Yepez et al., was sentenced by Chief Judge Philip Simon to 15 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of conspiracy to possess with intent to distribute and distribution of cocaine.This case was the result of an investigation by the Drug Enforcement Administration HIDTA Task Force.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Scott Filbey, 48, of Walton, Kentucky, was sentenced by District Judge Joseph Van Bokkelen to two concurrent terms of 342 months imprisonment and 20 years of supervised release after pleading guilty to two counts of the felony offense of production of child pornography.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Indiana State Police.This case was prosecuted by Assistant United States Attorney Jill Koster.
Simmuel Mobley, 46, of Gary, Indiana, was sentenced by Senior District Judge Rudy Lozano to 30 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.Mobley has a prior felony conviction for dealing in marijuana in 2003. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Thomas McGrath.
Antonio Wilson, 31, of Gary, Indiana, was sentenced by Senior District Judge Rudy Lozano to 15 months imprisonment and 6 years of supervised release after pleading guilty to the felony offense of distribution of crack cocaine within 1000 feet of a school.This case was the result of an investigation by the Federal Bureau of Investigation and the Gary Police Department.This case was prosecuted by Assistant United States Attorney Thomas McGrath.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following felony sentencings that occurred this week before District Judge Theresa L. Springmann:
Juan Sandoval, 46, of Fort Wayne, Indiana, was sentenced to 168 months imprisonment with 6 years of supervised release after pleading guilty to distribution of methamphetamine and 120 months of imprisonment with 2 years of supervised release after pleading guilty to possession of a firearm by a convicted felon, both sentences to run concurrently.According to documents filed in this case, in March 2013, Sandoval’s residence was searched by law enforcement.Officers discovered two hidden shotguns, a handgun and ammunition.When arrested, Sandoval had approximately $8,000 cash in his possession and admitted to possession of the guns and dealing in methamphetamine.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Ronald Bodley, 42, of Fort Wayne, Indiana, was sentenced to 46 months of imprisonment and 2 years supervised release after pleading guilty to the felony offense of possessing with the intent to distribute cocaine.According to documents filed in this case, Bodley was stopped for a traffic violation and claimed he was ill during the stop.During a medical examination, a law enforcement officer observed a bag containing white powder sticking out of Bodley’s coat pocket.The bag was seized and field tested positive for cocaine with an approximate weight of 124.8 grams.Bodley was arrested and his residence searched.During the search, law enforcement discovered large amounts of drugs and money, including more than a kilogram of cocaine and more than $30,000 in cash.This case was the result of an investigation by Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Washington, Pa., Man Sentenced to 7 Years in Prison for Possessing Stolen GunRead the Press Release
PITTSBURGH - A resident of Washington, Pa., pleaded guilty in federal court to a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Ronald Gardner, 45, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that on Feb. 3, 2010, Gardner knowingly possessed a .45 caliber stolen firearm.
Subsequent to the entry of Gardner’s guilty plea, Judge Fischer sentenced Gardner to seven years in federal prison, to be followed by three years of supervised release.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, together with the City of Washington and South Strabane Township Police Departments, conducted the investigation that led to the prosecution of Ronald Gardner.
Wakpala Man Sentenced for Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wakpala, South Dakota, man convicted of Distribution of a Controlled Substance was sentenced on January 10, 2014, by U.S. District Judge Charles B. Kornmann.
Francis DuBray, age 24, was sentenced to 16 months in custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
DuBray was indicted by a federal grand jury on August 21, 2013. He pled guilty on November 18, 2013.
The conviction stems from two incidents wherein a confidential informant was given pre-recorded money to purchase marijuana from Dubray. The first controlled buy was on May 13, 2013, when the informant used $600 to purchase 6.92 ounces of marijuana from DuBray. For the second controlled buy, the confidential source used $850 in pre-recorded money to purchase 7.60 ounces of marijuana from DuBray on June 11, 2013.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller prosecuted the case.
DuBray was immediately turned over to the custody of the U.S. Marshals Service.
Wabaunsee County Woman Sentenced for Embezzling from Bio-Security Research InstituteRead the Press Release
TOPEKA, KAN. - A Wabaunsee County woman was sentenced today to 60 days in federal prison for embezzling from the Bio-Security Research Institute at Kansas State University, U.S. Attorney Barry Grissom said. In addition, she was ordered to pay $14,000 in restitution.
Linda Kay Miller, 51, Alma, Kan., pleaded guilty to three counts of interstate transportation of fraudulently altered securities. In her plea, she admitted the crimes took place while she worked as an office manager for the institute from August 2007 to January 2013. The institute receives grant money from the federal government to provide infectious disease research programs that address threats to plant, animal and human health.
Miller used her position to embezzle funds by diverting checks sent to the institute. She altered the checks to make herself either a payee or co-payee and deposited the proceeds into one of her personal bank accounts. The proceeds moved in interstate commerce as part of a process to clear and negotiate the checks. The plea identifies three checks Miller diverted: A check from the FSU Research Foundation in Tallahassee, Fla.; a check from the Frontline Healthcare Workers Safety Foundation in Atlanta, Ga.; and a check from J.M. Oconnor Inc., in Lenexa, Kan.
Grissom commended the FBI, the Kansas State University Police Department, the Wabaunsee County Sheriff’s Office and Assistant U.S. Attorney Richard Hathaway for their work on the case.Valdez Man Sentenced for Failure to File an Income Tax Return That Should Have Included Income He Received from Funds His Sister Stole from the Native Village of TatitlekRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Valdez man was sentenced in federal court in Anchorage for willful failure to file an income tax return.
James Kramer, 48 of Valdez, Alaska was sentenced today by United States District Court Judge Sharon L. Gleason, to 8 months in prison and a $2,000 fine.
According to Assistant U.S. Attorney Aunnie Steward, Kramer’s sister Lori “Sue” Clum (formerly Johnson) was elected as President of the Native Village of Tatitlek, a federally recognized tribe, in October 2007. Clum was voted out of office in April 2008. Clum refused to accept the results of the election and maintained control of the tribal bank accounts for another year during which she misapplied $112,000 of tribal funds for her personal benefit. Clum gave $20,000 of the funds she misapplied to her brother James Kramer. When asked what he did with the $20,000 cash Kramer indicated he “squandered it partying.”
Kramer earned a total of $127,800 in income for 2009 including the $20,000 he received from his sister knowing she had misapplied the funds from the Native Village of Tatitlek. Kramer willfully failed to file a tax return for any of the income he earned in 2009, and he also willfully failed to file tax returns for 2008, and 2010.
“Kramer personally benefited from stolen funds belonging to the Tatitlek Tribe,” said Kenneth J. Hines, Special Agent in Charge of the IRS Criminal Investigation for Alaska. “These precious funds were meant to provide a stable government and community for the Tatitlek people not to line the pockets of fraudsters. When you steal from your community law enforcement will be quick to respond and bring the full weight of the American justice system with it.”
Judge Gleason noted that Kramer’s failure to pay taxes on income that included criminal proceeds is a more serious offense than just failing to pay taxes.
Ms. Loeffler commends the FBI, IRS Criminal Investigations, and EPA Office of Inspector General, with assistance from the Valdez Police Department, for the investigation of this case.Two St. Francis Men Charged with Second Degree Murder and A Sioux City Woman Charged with Accessory After the FactRead the Press Release
United States Attorney Brendan V. Johnson announced that two men from St. Francis, South Dakota, have been indicted by a federal grand jury for Second Degree Murder, Aiding and Abetting, and a Sioux City, Iowa, woman has been charged with Accessory After the Fact.
BillyRay McCloskey, age 23, Riley McCloskey, age 20, and Crystal Red Hawk, age 36, were indicted on January 7, 2014. They appeared before U.S. Magistrate Judge Mark A. Moreno on January 15, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction for Second Degree Murder, Aiding and Abetting is up to life in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered. The maximum penalty for Accessory After the Fact is 15 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Riley and BillyRay McCloskey are charged with two counts of Second Degree Murder, Aiding and Abetting for the death of one victim by strangulation, and the death of a second victim by assaulting him with hands and shod feet, and stabbing him in the chest with a screwdriver. Red Hawk is charged with Accessory After the Fact for assisting BillyRay and Riley in order to hinder and prevent their apprehension, trial, and punishment.
The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. U.S. Attorney Brendan V. Johnson and Assistant U.S. Attorney Marie H. Ruettgers are prosecuting the case.
The Defendants were remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for March 11, 2014.
Two More Retailers Arrested for Food Stamp FraudRead the Press Release
Defendants Received Over $1 Million from USDA for Food Stamps Allegedly Traded for Cash
Baltimore, Maryland – Abdulmalik Abdulla, age 37, and Ahmed Mohssen, age 53, both of Baltimore, were arrested today on federal charges of conspiracy to commit food stamp fraud and wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. The criminal complaint filed today alleges that the defendants, who operate Sam’s NY grocery store on North Milton Street in Baltimore, received over $1.5 million in federal payments for transactions in which they did not provide any food, but split the proceeds with food stamp recipients. Federal agents arrested the defendants and executed search warrants at the store and related locations today. In separate cases, ten defendants were charged with food stamp fraud in September 2013; four of those defendants have pleaded guilty and the others are awaiting trial.
The arrests were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture Office of Inspector General, Northeast Region; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“Retailers who trade food stamp credits for cash are on notice that federal authorities are on their trail,” said U.S. Attorney Rod J. Rosenstein. “Taxpayers fund the program to provide food for needy recipients, not to turn retail store cash registers into ATM machines.”
The Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program, is administered by the Food and Nutrition Service (FNS) of the United States Department of Agriculture (USDA), together with state agencies. The program funds low-income individuals to allow them to obtain a more nutritious diet. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients use the EBT card to purchase approved food items from participating retailers.
Retailers must apply to and be approved by FNS to participate in the program. Authorized retailers use a point-of-sale terminal that checks the EBT card information and deducts the cash value of the purchase from the customer’s SNAP benefit balance. SNAP reimbursements are paid to retailers through electronic funds transfers. Retailers bill the government in return for providing approved food items. SNAP retailers, including the defendants, receive instruction regarding the requirements and regulations of the food stamp program, such as that only eligible food items can be exchanged for EBT benefits and that a retailer may never exchange EBT benefits for cash or non-food items.
The criminal complaint alleges that the defendants exchanged EBT benefits for cash, typically paying half the value of the EBT benefits in cash. As a result of unlawful cash transactions, the defendants allegedly obtained more than $1.5 million in EBT deposits for transactions in which the store did not provide food.
The defendants face a maximum sentence of 20 years in prison for each count of wire fraud, and a maximum of five years in prison for conspiracy to commit food stamp fraud. The defendants are expected to have initial appearances at 3:45 p.m. today in U.S. District Court in Baltimore.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the USDA Office of Inspector General and FBI for their work in the investigation. U.S. Attorney Rosenstein expressed appreciation to Secretary Ted Dallas and the Maryland Department of Human Resources, as well as U.S. Citizenship and Immigration Services - Office of Fraud Detection and National Security for their assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kathleen O. Gavin, who is prosecuting the case.
Two Indicted for Robbing Bank in Oriental, North CarolinaRead the Press Release
GREENVILLE – United States Attorney Thomas G. Walker announced that on January 15, 2014, a federal grand jury in Greenville, North Carolina returned a two-count indictment charging DAVID McARTHUR KING, 24 of New Bern and THOMAS LEE CUTHBERTSON, JR., 24 also of New Bern with armed bank robbery and aiding and abetting in violation of Title 18, United States Code, Section 2113(a) and (d) and 2 and the use or carrying of a firearm, by brandishing, during and in relation to a crime of violence, or possession in furtherance thereof, and aiding and abetting in violation of Title 18, United States Code, Section 924(c)(1)(A) and 2.
The evidence shows that on December 2, 2013 KING and CUTHBERTSON robbed the First Citizens Bank in Oriental, North Carolina of approximately $33,707.90. During the course of the robbery, the defendants did assault various persons and put into jeopardy their lives by means and use of a handgun.
If convicted, KING and CUTHBERTSON face a maximum penalty of 25 years imprisonment, a $250,000 fine, and 5 years of supervised release for a conviction of the bank robbery charge and life imprisonment, with a mandatory sentence of 7 years consecutive to any other sentence served, a $250,000 fine, and 5 years of supervised release for the use or carrying of a firearm, by brandishing, during and in relation to a crime of violence charge. The actual sentence would be determined by the sentencing court after consideration of the advisory sentencing guidelines.
Investigation of this case was conducted by the Federal Bureau of Investigation, the New Bern Police Department and the Pamlico County Sheriff’s Office. Assistant United States Attorney John Bennett is prosecuting the case for the government.
The charges contained in this indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two District Men Sentenced to Decades in Prison for Murder of Retired Vietnam Veteran in Southeast Washington-Victim, 71, Was Slain in His Apartment After Trying to Protect His Wife-Read the Press Release
WASHINGTON- Stephen Page, 21, and James Brewer, 27, both of Washington, D.C., were sentenced today to decades in prison for the 2011 slaying of a 71-year-old man in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Both men pled guilty in November 2013, in the Superior Court of the District of Columbia, to second-degree murder while armed. They were sentenced by the Honorable Herbert B. Dixon, Jr. Page was sentenced to 31 years in prison, and Brewer was sentenced to a term of 27 years and eight months of incarceration. Upon completion of their prison terms, they will be placed on five years of supervised release.
According to a proffer of facts presented during the plea hearing, on June 27, 2011, at about 9:15 p.m., Brewer, Page, Anthony Thomas, and a fourth man walked into an apartment building in the 2300 block of Good Hope Road SE. They entered the front lobby and gathered at the elevator. Then they took the elevator to the seventh floor.
Minutes later, Brewer, Page and Thomas entered the apartment of Solomon Reese, 71, a Vietnam veteran who supplemented his retirement income by selling cigarettes to neighbors in the area. Mr. Reese was known by many neighbors as the “cigarette man.”
While the men were inside, Mr. Reese’s wife, meanwhile, returned to the apartment from the building’s trash room. Upon hearing scuffling, she began to scream. At that point, Brewer pulled her inside the apartment and threw her toward the front room sofa. Then, as she continued to scream, Thomas placed a blanket over her mouth. Mr. Reese, who initially struggled with Page over a pistol that Page was holding, grabbed Thomas. Page warned him to let go. Then, when Mr. Reese reached into his pocket, Page shot him several times.
Brewer, Page and Thomas left the apartment, taking two bags containing cigarettes and travelers’ checks. Mr. Reese was taken to a hospital, where he died from his injuries. He had been shot multiple times, with bullets hitting him in the chest, abdomen and thigh.
Detectives with the Metropolitan Police Department (MPD) obtained surveillance video showing Brewer, Page, Thomas, and the fourth man entering the building and getting onto the elevator. Footage from approximately seven minutes later showed Brewer, Page and Thomas moving quickly out of the stairwell on the basement level, with Brewer carrying two bags.
On July 14, 2011, the U.S. Marshals Service arrested Brewer in Newport News, Va., and transported him to the District of Columbia for presentment on a charge of first-degree murder while armed. While awaiting presentment in the Superior Court of the District of Columbia, Brewer switched armbands with another arrestee and pretended to be that person. He then signed release papers under that arrestee’s name and left the courthouse. Marshals discovered the ruse and searched for Brewer, who surrendered the following day.
Thomas, 25, earlier pled guilty to a charge of voluntary manslaughter while armed and is awaiting sentencing.
In announcing the sentences, U.S. Attorney Machen praised the work of the MPD detectives, officers, crime scene technicians, and forensic specialists who worked on the case. He also expressed appreciation for the assistance provided by the U.S. Marshals Service. In addition, he praised those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Alesha Matthews Yette; Litigation Technology Specialists Kimberly Smith, Leif Hickling, and Joshua Ellen; Jelahn Stewart, chief of the Victim Witness Assistance Unit, and Victim/Witness staff members Maria Shumar, Marcia Rinker, Michael Hailey, Katina Adams-Washington, M. Laverne Forrest, Tanya Via, and David Foster. Finally, he commended the efforts of Assistant U.S. Attorneys Gary Wheeler, and Scott Sroka, who secured the indictment in the case and handled the prosecution which led to the plea.
14-020Twin Brothers Head to Jail for Defrauding Sports FansRead the Press Release
SAN DIEGO, CA - United States Attorney Laura E. Duffy announced that Judge John A. Houston imposed custodial sentences on twin brothers Anthony Donald Casias and Leo Ronald Casias, Jr. for defrauding local sports fans through their company, “L & T Sports Events, Inc.” Anthony Casias received a sentence of 36 months in custody and 3 years of Supervised Release. Leo Casias was sentenced to 33 months in custody and 3 years of Supervised Release.
According to court documents, clients of L&T Sports paid in advance for travel, lodging, transportation, and game tickets to out-of-town sporting events, such as San Diego Chargers “away” games, other NFL games, and collegiate sporting events. The brothers told sports fans that in return for their payments to L&T Sports, the company would purchase flights, game tickets and hotel accommodations. The defendants even promised clients that L&T Sports obtained tickets in specific seating areas (for example, “lower level corner end zone” or “club level” seating), accommodations at specified hotels, and seats on specific airline flights, to reassure clients that the services clients paid for would be provided when the clients arrived at the game destinations.
For example, the brother’s victims included over a dozen local fans who arranged to watch the San Diego Chargers play the Chicago Bears in Chicago, Illinois in November 2011. These clients paid in advance for flights, hotels, and football game tickets. Although L&T Sports provided the airline tickets to Chicago; they provided little else. As a result, their customers showed up in Chicago without hotel rooms or game tickets for which they had already paid for in advance. Fortunately, some committed fans were able to find hotel accommodations and purchase tickets from local ticket brokers so they could watch the Chargers play.
Similar disappointments befell other customers. For example, one fan paid the Casias brothers in advance so that he could take his son to watch the Chargers play the Oakland Raiders at the Coliseum. Once again, L&T Sports provided a one-way flight but nothing else. Stranded in the Bay Area on New Year’s Eve 2011 with no hotel room, no game tickets, and no flight home, the two disappointed fans ended up driving back down to San Diego in a rental car and watching the game on TV.
Tony and Leo Casias did not limit their fraud to local sports fans. Residents of South Dakota, Philadelphia, and Colorado also arranged trips to see football games, only to find their money taken and no hotels, game tickets, and/or flights home provided. The Casias brothers even arranged trips to the annual NFL game in London, England, offering special extensions to Paris and Rome. Some clients were stranded overseas with no hotel rooms, game tickets, or flight home. What is worse, according to sentencing documents, the Casias brothers used those clients’ credit cards to rack up other charges while those clients were overseas in Europe.
For example, the United States provided evidence in court hearings that Tony and Leo Casias made unauthorized credit card charges on at least 4 individuals’ credit cards. They typically got authorization from the credit card holder to make limited charges – say, to pay the costs of a client’s trip, or a $400.00 loan – but then used those credit cards without authorization to pay for travel services for other clients, or, in some cases, to make their own car payments, pay their cell phone bills, and, adding insult to injury, pay for their own delinquent Chargers season tickets.
Public records indicate that the Casias brothers were convicted in the early 1990’s for a similar scheme involving travel services to middle school students. In that case, the brothers offered educational trips to the East coast, and required students to pay in advance. Defendants collected over $275,000 in advance payment from schools, students, and parents, but used the funds to pay for prior business and personal debts instead of paying for the trips. One parent chaperone from that memorable trip informed the sentencing court in a letter that she accompanied 193 junior-high aged children on a trip to Washington D.C. The students held multiple fundraisers and had to complete projects, research, and presentations before they could go on the trip. She called it “craven” that Leo and Tony Casias accompanied the group to the airport to see them off, knowing that the students would soon be stranded on the east coast thousands of miles from home, with no hotel rooms, local transportation, or return flights home. She recalls that the students ended up staying on cots in military barracks.
In addressing the defendants, Judge Houston chastised them for what he described as their “continuous fraud and manipulation to people you thought were less than you...You are not Madoff. This was not a sophisticated scheme. This was an old fashioned, salt of the earth swindle. [These were] good people [including] your mother's rosary group . . . You were heartless. You just didn't care."
The defendants will next appear in court on February 8, 2014, before Judge Houston for a hearing to determine the amount of restitution they will owe to victims.
DEFENDANT Criminal Case No. 12CR4966-JAHAnthony “Tony” Donald Casias
36 months in custodyLeo Ronald Casias, Jr.
33 months in custodySan Diego, California
San Diego, California
SUMMARY OF CHARGECount 1: Title 18, United States Code, Section 1349 - Conspiracy to Commit Wire Fraud. Maximum penalties: 20 years’ imprisonment, $250,000 fine, $100 special assessment, 3 years of supervised release, mandatory restitution to victims.
INVESTIGATING AGENCYFederal Bureau of Investigation
Topeka Man Sentenced to Federal Prison on Firearm ChargeRead the Press Release
TOPEKA, KAN. - A Topeka man was sentenced today to 27 months in federal prison for a firearms violation, U.S. Attorney Barry Grissom said.
Jason Beckwith, 26, Topeka, Kan., pleaded guilty to one count of unlawful possession of a firearm after a felony conviction. In his plea, Beckwith admitted that he possessed a .22 caliber revolver on July 11, 2013, when he was arrested at 619 SW Taylor in Topeka. He was prohibited by federal law from possessing a firearm because of a prior felony conviction in Shawnee County District Court in 2009 on a forgery charge.
Grissom commended the Topeka Police Department and Assistant U.S. Attorney Tony Mattivi for their work on the case.
Three More Defendants Plead Guilty in Stolen Identity Tax Refund Scheme Resulting in Millions of Dollars in Fraudulent ActivityRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that defendants Henry Dorvil, aka “D,” 35, of Hollywood, Brandon Johnson, 29, of Miami Gardens, and Ronald Gustave, 36, of Miami, pled guilty today for their participation in a stolen identity tax refund scheme resulting in millions of dollars in fraudulent activity. Sentencing for Dorvil is scheduled for April 14, 2014 at 8:30 a.m. Sentencing for Gustave and Johnson is scheduled for April 18, 2014 at 8:30 a.m.
Specifically, each defendant pled guilty to one count of conspiring to defraud the government, in violation of Title 18, United States Code, Section 371, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Co-defendants Dukens Eleazard, aka “DK,” 33, of Pembroke Pines, Luckner St Fleur, aka “Nene,” 32, of Miami, Marie Eleazard, aka “Fanfan,” 32, of Miami, and Jesse Lamar Harrell, 26, of Miramar, each previously pled guilty to the same two charges. Dukens Eleazard is scheduled to be sentenced on February 26, 2014; Harrell and St Fleur are scheduled to be sentenced on February 27, 2014; and Marie Eleazard is scheduled to be sentenced on March 5, 2014. At sentencing, each of the defendants face a maximum of five years in prison for the conspiracy charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
Co-defendant Marc Leroy Saint Juste, 26, of Tamarac, previously pled guilty to one count of conspiring to defraud the government, in violation of Title 18, United States Code, Section 371. He was sentenced to two months in prison, to be followed by one year of supervised release.
Court documents state that the defendants conspired to unjustly enrich themselves by recruiting knowing co-conspirators and unknowing victims to put businesses, bank accounts and Electronic Filing Identification Numbers (EFINs) in their names, through which fraudulent transactions would be conducted. To accomplish this, the defendants used the personal identification information of individuals, many deceased, to prepare and file false and fraudulent income tax returns with the IRS. The defendants would obtain possession of fraudulently obtained refunds in the form of United States Treasury and Refund Anticipation Loan checks diverted to addresses or into bank accounts that they caused to be created and controlled. The defendants would then negotiate the fraudulently obtained federal income tax refunds within each other’s businesses, and elsewhere, to avoid being detected.
According to documents filed in conjunction with today’s plea hearings, Dorvil and/or his co-conspirators filed 1,747 false returns using deceased individuals’ identities from multiple EFINs, and these returns fraudulently claimed approximately $7 million in refunds. The dollar amount of fraudulent federal income tax returns filed and paid by the IRS, in 2012, under the EFIN used by Gustave was $544,054. Johnson and other co-conspirators working at Imperial Tax used an EFIN to file approximately eight fraudulent 2010 tax returns that were prepared with identities from deceased individuals that fraudulently claimed $44,608 in refunds.
A change of plea hearing is scheduled on February 3, 2014 for co-defendant Ruth Cartwright, aka “Princess,” 30, formerly of Plantation.
Trial is scheduled on February 24, 2014 for co-defendants Herve Wilmore Jr., 29, of Aventura, Miguel Patterson, 35, of Miami, John Similien, 24, of Plantation, Corey Williams, 30, of Miami Gardens, and Delvin Jean Baptiste, aka “Doo Doo”, 29 of Miramar.
Mr. Ferrer commended the investigative efforts of the IRS-CI, FBI, and USSS. The case is being prosecuted by Assistant U.S. Attorney Neil Karadbil and Tax Division Trial Attorney Greg Tortella.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Teddy Mitchell Sentenced to Serve 27 Months for Running an Illegal Offshore Internet Sports Gambling OperationRead the Press Release
Oklahoma City, Oklahoma – Today, TEDDY DRYDEN MITCHELL, 59, of Oklahoma City, was sentenced by United States District Judge David L. Russell to serve 27 months in federal prison for running an illegal gambling operation, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
On September 24, 2012, an 81-count federal indictment was unsealed charging Mitchell and other individual defendants with crimes involving an illegal gambling operation and the money laundering of proceeds derived from that operation. Specifically, the Indictment alleged that the defendants (1) operated "High Stakes" poker games from a residence located at 640 N.W. 150th, in Oklahoma City; (2) took bets and wagers on sporting events on behalf of betting clients; (3) used an illegal Internet gambling website in interstate and foreign commerce for the benefit of betting clients; (4) laundered the proceeds of illegal gambling activities; and (5) committed various crimes related to the operation of an illegal gambling business, including but not limited to, interstate travel in aid of racketeering and use of a wire communication facility to transmit betting information.
The Indictment alleged that Teddy Mitchell organized poker games at the residence and also operated as a traditional bookmaker by taking sports bets for clients both in person and over the phone. Later, it was alleged, betting clients were provided a password to access a Costa Rican sports betting Internet website. It was alleged that to further their gambling operation the defendants conspired to launder over $8.1 million in money derived from the gambling operation.
Teddy Mitchell Plea and Sentence
On July 8, 2013, Mitchell pled guilty to running an illegal offshore internet sports betting business and conspiracy to commit money laundering. As part of his plea, Mitchell admitted that he conducted, financed, managed, supervised, directed or owned all or part of the gambling business that violated Oklahoma law and that the business was in substantial continuous operation for more than 30 days or had gross revenue of $2,000 or more on any single day. In addition, he admitted that he conspired to launder funds to promote the illegal internet gambling business.
At the sentencing hearing today, Judge Russell ordered Mitchell to serve 27 months in federal prison, followed by two years of supervised release
Other Defendants
Eight other men were convicted and sentenced in this case, as follows:
RICHARD ALLEN HANCOCK, 68, of Yorba Linda, California, pled guilty on March 15, 2013, and was sentenced on August 21, 2013, to serve 16 months in prison, followed by three years of supervised release.
GARY JOHN GIBB, 69, of Reno, Nevada, pled guilty on April 5, 2013, and was sentenced on September 11, 2013, to serve 16 months in prison, followed by three years of supervised release.
DAVID BRUCE LOVELAND, 66, of Oklahoma City, pled guilty on July 16, 2013, and was sentenced on October 24, 2013, to serve six months home confinement, three years’ probation, and pay a $2,000 fine.
BILLY NICK MITCHELL, 24, of Oklahoma City, pled guilty on July 16, 2013, and was sentenced on October 24, 2013, to serve two years’ probation, pay a $1,000 fine, and pay restitution of $820.
MICHAEL LEE McCULLAH, 35, of Ardmore, Oklahoma, pled guilty on July 16, 2013, and was sentenced on September 10, 2013, to serve one year probation, pay a $1,000 fine, and pay restitution of $884.
JUSTIN EDWARD MUSGROVE, 40, of Oklahoma City, Oklahoma, pled guilty on July 16, 2013, and was sentenced on November 12, 2013, to pay a $1,000 fine and restitution of $884.
JUSTIN EDWARD MUSGROVE, 40, of Oklahoma City, Oklahoma, pled guilty on July 16, 2013, and was sentenced on November 12, 2013, to pay a $1,000 fine and restitution of $884.
JUSTIN EDWARD MUSGROVE, 40, of Oklahoma City, Oklahoma, pled guilty on July 16, 2013, and was sentenced on November 12, 2013, to pay a $1,000 fine and restitution of $884.
Forfeiture of Illegal Proceeds
As part of this case, the government also seeks a forfeiture money judgment of over $8.1 million and the forfeiture of multiple tracts of real property, vehicles, and cash held in various accounts.
This case is the result of a joint investigation including the Federal Bureau of Investigation and IRS Criminal Investigation. The case was prosecuted by Assistant U.S. Attorneys Ashley L. Altshuler and Edward J. Kumiega.
Statement from Justice Department Spokesman Regarding <br /> President Obama’s Speech on U.S. Signals IntelligenceRead the Press Release
The U.S. Justice Department released the following statement by department spokesman Brian Fallon in response to President Obama’s speech on U.S. signals intelligence:
“The Attorney General believes that the President’s reforms will further ensure that the proper balance is struck between the need to keep the nation safe and the need to safeguard our civil liberties. In the weeks ahead, the Justice Department will work closely with the intelligence community and other key administration officials to implement the President’s reforms.”
St. Louis Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
Nathaniel R. Duff, a 34-year old, St. Louis, Missouri, man was sentenced on January 17, 2014, in federal district court in East St. Louis, Illinois, on one count of failure to register as a sex offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Duff was sentenced to 21 months in federal prison, five years of supervised release, ordered to pay a $100 special assessment, and a $150 fine.
The violation occurred in late 2012, when Duff moved from Illinois to St. Louis. He was aware that he was required to either update his sex offender registration in Illinois to reflect this change of address, or register as a sex offender in Missouri. Duff was convicted on April 15, 1999, in Third Judicial Circuit Court in Bond County, Illinois, of Aggravated Criminal Sexual Abuse. Because of his failure to register in Missouri and his failure to update his registration in Illinois, Duff was charged in federal court with Failure to Register as a Sex Offender pursuant to the Sex Offender Registration and Notification Act.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the United States Marshals Service and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
St. Francis Man Sentenced for Assault by Striking, Beating and Wounding and Simple AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man charged with Assault by Striking, Beating and Wounding and Simple Assault pled guilty to, and was sentenced, on January 15, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Westlee Ford, age 20, was sentenced to 12 months and 1 day in custody, and was ordered to pay $35 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on June 15, 2013, when Ford was at a party in which the victim was also present. There were verbal disagreements and Ford stabbed the victim with a knife. The victim had four stab wounds to his body as a result of the assault.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
Ford was ordered to self-report to the U.S. Marshals Service by noon on January 22, 2014.
Southeast Heli-Ski Company Enters Guilty PleaRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a commercially guided helicopter-skiing operation SOUTHEAST BACKCOUNTRY ADVENTURES (“SEABA”) located in Haines, Alaska, pled guilty in federal court in Anchorage to one count of trespassing on land managed by the Bureau of Land Management. The guilty plea was entered by part-owner Beb Anderson.
SEABA, a Haines, Alaska heli-ski operation pled guilty in Anchorage in U.S. District Court in front of Judge Timothy Burgess today to one count of Trespassing on BLM-managed land for operating heli-skiing in a closed area without a permit. According to pleadings filed by Assistant U.S. Attorney Aunnie Steward with the Court:
From 2002 to 2006, SEABA had an Special Recreation Permit (“SRP”) for a helicopter-skiing operation on certain BLM managed lands south of the Tsirku River and bordering Glacier Bay National Park near Haines, Alaska. In 2006, SEABA allowed this SRP to expire. Following the expiration of SEABA’s permit, BLM closed these lands to new heli-ski permitting pending an environmental study to determine the impacts of increasing the amount of permitted heli-ski operations. SEABA applied for a new permit for these closed areas in 2011. SEABA was informed of the closure and did not obtain a permit.
On March 3, 2013, a fatality occurred on BLM-managed land during a commercial heli-ski operation conducted by SEABA. A SEABA guide directed the helicopter pilot to land on BLM-managed land to ski a run on BLM-managed land. This land was within the closed area and SEABA did not have a permit to operate there. This ski run had also been utilized numerous times in 2012 by SEABA without a permit. In fact, SEABA had named the run for one of SEABA’s frequent customers. SEABA had included a map with this run in its application for the 2011 permit that was not approved.On the day of the fatality, March 3, 2013, the SEABA helicopter landed on the ridge top where the ski run starts on BLM-managed land. After the SEABA group exited the helicopter a cornice gave way under the weight of the group. One of the members of the group was killed in the fall that resulted from the cornice collapse. SEABA was not permitted for use on this ski run on BLM-managed land, and SEABA knew it was a violation of law to operate on this location without a permit.
Following this fatality, BLM initiated an investigation that involved interviews of SEABA employees, a review of SEABA’s flight following logs, maps, and GPS flight data collected by SEABA in accordance with its Haines Borough permit. This investigation revealed that despite knowing that SEABA was not permitted for helicopter-skiing on BLM-managed lands in this area, SEABA illegally operated commercially on BLM-managed lands on approximately 54 days in 2012 and 2013 out of 78 total days of heli-ski operations in these two seasons. Based on a percentage of SEABA’s gross revenue and the percentage of time SEABA operated commercially on BLM-managed lands in 2012 and 2013, SEABA would have owed a minimum of $11,556 in user fees to BLM that would have been charged if the area had been open to use.
The parties have agreed to recommend to the court that SEABA be sentenced to pay restitution in the amount of $11,556; pay a $10,000 fine; and serve a two-year term of probation during which time they have to make available the GPS data for the company operations to BLM. Sentencing has been scheduled for April 17, 2014.
Ms. Loeffler commends the BLM Office of Law Enforcement and Security for the investigation of this case with assistance from the Alaska State Troopers and the Haines Borough.
Snohomish County Man who Smuggled Protected Reptiles Sentenced to PrisonRead the Press Release
A Snohomish County man who participated in a wide ranging conspiracy to illegally traffic in protected reptile species was sentenced today to 12 months in prison and three years of supervised release, announced U.S. Attorney Jenny A. Durkan. NATHANIEL SWANSON, 36, together with five co-defendants, conspired to smuggle domestic species out of the United States and into Hong Kong and illegally import Asian species into the United States. One of the co-defendants, TAK MING TSANG, 24, a Hong Kong citizen residing in the United States, was sentenced to six months in prison and two years of supervised release. A third co-defendant, CHEUK YIN KO, 25, will be sentenced on Friday, January 24, 2014. Most of the illegally trafficked species were protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) and the Endangered Species Act. The estimated market value of the trafficked specimens was between $120,000 and $200,000. Many of the animals died during transport or shortly thereafter. At sentencing Chief U.S. District Judge Marsha J. Pechman said, “It is important that the United States participate with its world partners in sending the message that these are serious offenses.”
“The cruelty of this scheme is evident in the pictures of the turtles wrapped in socks and taped to keep them still and hidden from inspectors and shipping agents,” said U.S. Attorney Jenny A. Durkan. “Trafficking in wildlife is bad for the environment: it not only decimates endangered populations, it spreads invasive species and disease. I applaud the delivery service worker who first reported this scheme to law enforcement when she noticed a moving box and discovered a snake inside. But for that discovery, these traffickers might never have been caught.”
According to court filings, trafficking in protected species for commercial gain is an international problem, the full extent of which is unknown due in large part to the deceptive practices undertaken by SWANSON and his co-conspirators. While law enforcement authorities intercepted several shipments, most went undetected. Working with two foreign nationals residing in the United States, including his co-defendant TSANG, SWANSON illegally exported Eastern box turtles, North American wood turtles, and ornate box turtles to buyers located in Hong Kong. Additional domestic species exported by the co-conspirators included Gila monsters, Gulf Coast box turtles, and three-toed box turtles. SWANSON was also directly involved in importing several protected species directly from Hong Kong, including black-breasted leaf turtles, Chinese striped-necked turtles, big-headed turtles, fly river turtles, and an Arakan forest turtle. All of these species are protected under CITES. The Arakan forest turtle is critically endangered, having once been thought to be extinct. The illegal trafficking spanned a period of approximately four years.
Animals that survived and were seized by law enforcement have been cared for at local zoos and wildlife rehabilitation centers. As part of his sentence, SWANSON and his co-defendants will share in the cost of caring for the seized animals – about $28,500. The defendants forfeited any interest in the animals.
In asking for an 18 month prison sentence prosecutors argued that “Mr. Swanson and his co-conspirators engaged in a long-term scheme to illegally import and export numerous species of reptiles threatened with extinction and protected under an international convention and the laws of the United States. The actions of Mr. Swanson and his confederates can only be characterized as a concerted effort to profit from buying and selling contraband.”
On July 1, 2013, President Obama issued an Executive Order entitled Combating Wildlife Trafficking. As stated in the Order, “The survival of protected wildlife species such as elephants, rhinos, great apes, tigers, sharks, tuna, and turtles has beneficial economic, social, and environmental impacts that are important to all nations. Wildlife trafficking reduces those benefits while generating billions of dollars in illicit revenues each year, contributing to the illegal economy, fueling instability, and undermining security.” Globally, freshwater turtles and tortoises are being collected, traded and consumed in overwhelming numbers with no regard for sustainability of wild populations. Species are being used for food, pets, and traditional medicines.
The case was investigated by the U.S. Fish and Wildlife Service Office of Law Enforcement, with assistance from the U.S. Postal Inspection Service, and was prosecuted by Assistant United States Attorneys Matthew Diggs and Jim Oesterle.
Six Plead Guilty in Hydroponic Marijuana CaseRead the Press Release
PITTSBURGH – Six residents of Western Pennsylvania and California pleaded guilty in federal court to a charge of conspiracy to violate the federal drug laws, United States Attorney David J. Hickton announced today.
Stanley Van Bach, 45, of Oakland, Calif.; Quynh Tran, 30, of San Jose, Calif.; Caquaine McGriff, 40, of Pittsburgh, Pa.; Toron Brooks-Chapman, 35, of Pittsburgh, Pa.; Tom Ich Chieu, 35, of Pittsburgh, Pa.; and Poi Tran, 30, of Oakland, Calif., pleaded guilty to conspiracy to distribute high-quality hydroponic marijuana before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that co-conspirator Jennifer Chieu moved to Pennsylvania in 2010, and by October of that year was in the drug business, using her old contacts to ship her 10-20 pound packages of high-quality marijuana from California on a daily basis. Chieu then resold the marijuana for $2,400-$4,600 a pound, depending on quality, to a small network of dealers.
United States Postal Inspectors eventually identified more than 250 inbound drug packages, and in excess of 350 outbound parcels containing drug proceeds, with $12,000-$20,000 in each package. The total wholesale value of the marijuana was as much as $16 million, with the retail value being several multiples of that.
Postal inspectors and IRS, FBI, and Immigration and Customs Enforcement special agents observed Chieu making deals out of her Green Tree home and a nail salon she owned on Liberty Avenue in the Bloomfield section of Pittsburgh.
Between January and April 2011, postal inspectors served nine search warrants on outgoing parcels suspected to contain drug proceeds. Each of the parcels contained between $12,000-$20,000 in cash, with the total exceeding $143,000.
Wiretaps were approved for Chieu’s phones and several others between June and October 2011. Chieu and her co-conspirators spoke four languages on the wiretaps – Vietnamese, English, and two Chinese dialects - often switching languages in mid-sentence in an obvious attempt to hamper law enforcement agents and interpreters who might be listening.
Hundreds of hours of drug calls were intercepted between Chieu and her primary Oakland, Calif., drug supplier and other conspirators. On a daily basis, Chieu and her conspirators discussed how much marijuana would be sent, the quality or “brand name” of the product, and how much Chieu would charge for it here and how many packages of cash she planned to send to California the next day.
Tom Chieu, brother to Jennifer Chieu, assisted her in the conspiracy by driving her to drug deals, transporting multiple pounds of marijuana, and mailing cash drug proceeds to California, at Jennifer Chieu’s direction.
Poi Tran and Stanley Van Bach were secondary suppliers in California of marijuana sent to Jennifer Chieu.
Toron Brooks-Chapman and Caquaine McGriff, husband and wife, were local dealers of multiple pounds of marijuana they purchased from Jennifer Chieu.
Quynh Tran was the passenger in a van stopped on July 24, 2011, by the Pennsylvania State Police westbound on the Pennsylvania Turnpike near the Ohio line. More than $136,000 in cash drug proceeds was seized from the van.
About 3500 pounds of marijuana were distributed in the conspiracy. Large seizures of cash demonstrated the broad scope of this drug ring. In April 2012, Chieu and a conspirator were stopped in Utah for a traffic violation. Hidden within their car was more than one-half million dollars in cash. Both individuals refused to claim the cash, with Chieu telling officers she didn’t know how it got there.
Following the indictment of Chieu and 19 other individuals, Chieu was arrested in April 2012, at which time more than $70,000 was seized from her Green Tree home, and $100,000 from a safe deposit box. About a million dollars in cash was seized in this investigation, with homes and cars also seized for forfeiture to the government.
Fourteen of the 20 indicted individuals have now entered pleas of guilty and await sentencing. On Jan. 14, 2014, Jennifer Chieu entered a plea of guilty to drug and money laundering conspiracies.
Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant. The law provides for a total sentence of not less than five years to 40 years in prison and a fine of $5,000,000 or both, for Stanley Van Bach; up to 20 years in prison and a fine of $1,000,000 for Tom Ich Chieu; and up to five years in prison and a fine of $250,000 for Quynh Tran, Caquaine McGriff, Toron Brooks-Chapman, and Poi Tran.
Sentencing has been scheduled for May 20, 2014, for Quynh Tran and Caquaine McGriff; May 21, 2014, for Tom Chieu; May 22, 2014, for Toron Brooks-Chapman; May 28, 2014, for Stanley Van Bach; and June 27, 2014, for Poi Tran.
Assistant United States Attorney Gregory J. Nescott is prosecuting this case on behalf of the government.
The U.S. Postal Inspection Service, the Internal Revenue Service – Criminal Investigation, and the Federal Bureau of Investigation were the lead agencies in this case, and were assisted by Immigration and Customs Enforcement and the Pennsylvania State Police in this investigation that led to the prosecution of these defendants.
Scott Dees Sentenced to 51 Months for Fraud Involving Woodmen of the World Life InsuranceRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces that defendant Scott Dees of Repton, Alabama was sentenced to 51 months in federal prison and ordered to pay $796,000 in restitution to his victims.
Between 2001 and 2011, Scott Dees worked as an independent contractor for Woodmen of the World Life Insurance Company, a fraternal order based in Omaha, Nebraska. During this time period, Dees purported to sell annuities and life insurance policies on behalf of Woodmen to numerous elderly individuals in rural Alabama. However, rather than send the investors’ money to Woodmen, Dees stole nearly $800,000 and spent it on his own personal expenses. A majority of Dees’ victims were elderly, unsophisticated individuals, some of whom were in nursing homes.
In July 2013, Dees pled guilty to a single-count Information charging him with operating a mail fraud scheme. At sentencing, several victims told U.S. District Court Judge Granade about how much Dees’ actions have devastated the investors as well as his own family. After hearing from the victims and Dees, Judge Granade sentenced him to 51 months in federal prison, which was the top end of the advisory guidelines range. Dees had asked for mere home confinement.
U.S. Attorney Kenyen R. Brown was extremely pleased with the result. “Mr. Dees preyed on elderly, unsophisticated victims in rural Alabama. Fraud will never be tolerated, especially in cases like this where the victims were some of the most vulnerable individuals in our community. My office will continue to aggressively prosecute fraud schemes affecting this district, and we will do everything in our power to ensure fraudsters wind up in federal prison.”
This case was investigated by the Monroeville office of FBI-Mobile, and was prosecuted by the U.S. Attorney’s Office for the Southern District of Alabama.
Robert Scheaffer, Jr. Sentenced for Sexually Assaulting S Foster DaughterRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on January 17, 2014, before U.S. District Judge Brian M. Morris, ROBERT JAMES SCHEAFFER, JR., 49, of the Fort Belknap Indian Reservation, was sentenced to a term of 34 months imprisonment, five years supervised release, and a special assessment of $100.
Scheaffer was sentenced in connection with his October 21, 2013, guilty plea to Sexual Abuse of a Minor. In an Offer of Proof filed by Assistant U.S. Attorney Jessica Betley, the government stated it would have proved that on July 4, 2008, the victim was 14-years-old and the defendant was 44-years-old. At that time, the victim lived with the defendant as a foster child on the Fort Belknap Indian Reservation. The defendant is an Indian person and an enrolled member of the Fort Belknap Tribes, which is a federally recognized tribe.
According to the victim, on that date, the defendant yelled at her to come out to the kitchen. When the victim's back was turned to the defendant, he came up behind her and began to put his hands all over her body. The defendant undid the victim's jeans, pulled them down, and felt her vaginal area with his hands. He then inserted his fingers into her vagina. The victim was scared, cried, and continually told the defendant to stop. Eventually, the victim was able to return to her bedroom. The defendant spoke with the FBI and admitted that he put his hand inside the victim's underwear and fondled her vagina for approximately two minutes.
Previously Indicted Chambersburg Woman Charged with Two Counts of Tampering with A WitnessRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg handed up a second-superseding indictment charging Maria Colvard, age 48, of Chambersburg, on January 15, 2014, charging her with two counts of tampering with a witness in addition to previous charges of extortion, aiding and abetting false personation of an employee of the United States, and interference with commerce by threats.
According to U.S. Attorney Peter J. Smith, between February and May 2013, Colvard convinced an employee to claim to be a criminal investigator with the Internal Revenue Service in order to collect alleged taxes owed, gain a client list from a rival tax preparation business and to ultimately shut down the business, Cristina’s Tax Service, LLC. Maria Colvard is the owner of Tax Max LLC, a tax preparation service.
Colvard was first indicted in June 2013, arrested and ordered released pending trial. A superseding indictment was filed in November 2013. Colvard allegedly offered her employee $50,000 if she would take responsibility for the underlying crimes without cooperating with law enforcement or involving Colvard. On January 6, 2014, Colvard allegedly went to the business of her co-defendant’s husband and confronted her co-defendant in an attempt to get her co-defendant not to testify against Colvard. Part of the conditions of Colvard’s pre-trial release required Colvard not to have any contact, direct or indirect, with her co-defendant.
U.S. Attorney Smith stated the government will investigate promptly and prosecute to the fullest extent of the law allegations of witness tampering in federal cases.
If convicted of all five charges, Colvard faces up to 66 years’ imprisonment and fines of up to $1,250,000.
This case is being investigated by the United States Treasury Inspector General for Tax Administration (TIGTA) and is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 66 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
****Pocatello Man Sentenced in “Spice” Case for Conspiring to Launder MoneyRead the Press Release
POCATELLO –John D. Heim, 41, of Pocatello, Idaho, was sentenced yesterday to 37 months in prison followed by three years of supervised release for conspiracy to launder money, U.S. Attorney Wendy J. Olson announced. Judge N. Randy Smith of the Ninth Circuit Court of Appeals, sitting by designation as a district court judge, also ordered Heim to perform 100 hours of community service after he is released from prison. He pleaded guilty to the charge on September 26, 2013.
According to the plea agreement, between March 1 and September 14, 2013, Heim owned and operated Heim, Inc., a business engaged in the sale of “spice,” a smokeable material containing a Schedule I controlled substance analogue. Heim admitted that he and other individuals engaged in monetary transactions in excess of $10,000 from funds derived from the illegal sale and distribution of spice. According to the plea agreement, the total amount of funds derived from the unlawful activity is $163,534.
As a result of the conviction, Heim will forfeit to the government property he owns at 354 S. 5th, in Pocatello, and 572 Fort Hall Ave., American Falls, Idaho.
The case is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Bannock County Sheriff’s Office, with assistance from the Drug Enforcement Administration (DEA), Internal Revenue Service-Criminal Investigation, Pocatello Police Department, Bingham County Sheriff’s Office, Blackfoot Police Department, and Idaho State Police. Other federal agencies participating in the OCEDTF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigation (FBI), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and U.S. Marshals Service.
The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Phoenixville Man Charged with Distributing Child PornographyRead the Press Release
Jeffrey Stephen Horn, 43, of Phoenixville, PA, is charged by information, filed today, with distribution of child pornography, announced United States Attorney Zane David Memeger. The indictment charges Russell with one count of distributing child pornography between June 13 and June 17, 2012.
If convicted the defendant faces a maximum possible sentence of 20 years imprisonment.
The case was investigated by the Federal Bureau of Investigation (including members of the FBI Child Exploitation Task Force) and the New Britain Township Police Department and is being prosecuted by Assistant United States Attorney Albert S. Glenn.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pataskala Man Pleads Guilty to Transporting Equipment Stolen from VA Medical Center in ChillicotheRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCOLUMBUS, OHIO – Curtis Clark III, 48, of Pataskala, Ohio pleaded guilty in U.S. District Court here today to transporting stolen generators and welding equipment worth $89,236.03 from the VA Medical Center in Chillicothe, Ohio and selling them to individuals in West Virginia.
Carter Stewart, U.S. Attorney for the Southern District of Ohio and Gavin McClaren, Resident Agent in Charge, U.S. Department of Veterans Affairs – Office of Inspector General (OIG) announced the plea entered today before U.S. District Judge Algenon L. Marbley.
According to court documents, a generator and welder belonging to the VA as well as two generators belonging to VA contractors, were stolen from the Chillicothe VA Medical Center in October 2011. In August 2012, the Mingo County West Virginia Sheriff’s Office contacted the OIG, telling them that the stolen items had been recovered in a storage garage in Holden, West Virginia.
Further investigation led to Clark, a patient at the VA at the time of the thefts, who admitted that he knew the men who stole the equipment and that he helped transport the equipment to West Virginia and sell it. Clark also admitted to pawning some of the items stolen from the VA at a Columbus pawn shop. Other construction equipment was recovered from Clark’s former residence in Pataskala.
Clark pleaded guilty to one count of interstate transportation of stolen property, which is punishable by up to ten years in prison, a fine of up to $250,000 and three years of supervised release. Judge Marbley will schedule a date for sentencing.
“This stolen equipment was intended for the care of our veterans at the Chillicothe VA Medical Center,” McClaren said. “We will tirelessly pursue those who steal from our nation’s heroes.”
U.S. Attorney Stewart commended the investigation by the VA Inspector General’s Criminal Investigation Division, the Chillicothe VA Medical Center Police who assisted with the investigation and Assistant U.S. Attorney Dale Williams, who is representing the United States in the case.
Owner of Child Support Collection Business Enters Guilty PleaRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Stuart C. Cole, 59, of St. Petersburg Beach, Florida, entered a plea of guilty on January 13, 2014, to conspiracy to commit mail fraud and wire fraud and conspiracy to commit money laundering. Mr. Cole entered his plea of guilty before Senior U.S. District Court Judge Hugh Lawson in Valdosta, Georgia.As a part of his plea, Mr. Cole admitted that from September 2007 through August 2009, he and others conspired to operate a fraudulent private child support collection business in Lake Park, Georgia and in other locations. Mr. Cole and his associates defrauded custodial parents who were to receive child support payments by inducing them to sign collection agreements with his company and offering to assist them in collecting child support payments from non-custodial parents, claiming that all fees connected with the collections would be the responsibility of the non-custodial parent. They would then use fraud, deception and coercion to get non-custodial parents and their employers to send funds for "child support" to Mr. Cole's business. Only a portion of the funds was ever given to the parents for the use of the children. The remainder was retained by Mr. Cole and his associates to lease homes, cars and boats. The conspiracy collected more than $2.3 million and retained approximately $1.2 million. Additionally, Mr. Cole admitted to laundering the collected funds through bank accounts including an account for a corporation, purported to be a church, as "love gifts".
The Court has scheduled sentencing for April 28, 2014 in Valdosta, Georgia. Mr. Cole faces a maximum possible sentence of up to twenty (20) years imprisonment and a maximum fine of $250,000, or both, on Count 1 of the indictment and up to twenty (20) years imprisonment, a maximum fine of $500,000.00 or twice the value of the property involved in the transactions, whichever is greater, or both. Mr. Cole also agreed to forfeit all assets obtained directly or indirectly through his criminal activity.
U.S. Attorney Michael Moore said, "Mr. Cole took advantage of victims who needed help the most. These were parents trying to raise children on their own and having to do it without the financial support these children were due from parents who were not living up to their financial obligations. On the one hand, Mr. Cole offered hope to the custodial parents, and then with the other hand, he snatched the money that they were counting on to support their children away from them."
"The actions committed by Mr. Cole are especially troubling, given that ultimately the victims were children. The Governor's Office of Consumer Protection is pleased to have initiated this investigation more than five years ago and to see this individual finally brought to justice," said John D. Sours, Administrator, Georgia Governor's Office of Consumer Protection.
"Those individuals who line their pockets with money gained through deceiving others should know they will not go undetected and will be held accountable," stated Special Agent in Charge, Veronica F. Hyman-Pillot. "IRS Criminal Investigation is committed to 'following the money trail' to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice".
"U.S. Postal Inspectors have protected the sanctity of the U.S. mails for over 200 years. Working closely with our law enforcement partners, we were persistent in our investigative efforts to bring to justice those responsible for victimizing the families in this particular case. The use of U.S. mail to defraud the American public cannot and will not be tolerated," said Keith A. Pixel, Inspector in Charge, Charlotte Division.
The case was investigated by the Internal Revenue Service Criminal Investigations, United States Postal Inspection Service and the Georgia Governor's Office of Consumer Protection. Assistant United States Attorney Robert D. McCullers is handling the prosecution for the Government.
For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Operator of D.C. Electronics Store Found Guilty of Trafficking in Stolen Property and Related Charges-Stolen IPhone Was Recovered from His Business-Read the Press Release
WASHINGTON –David J. Brown, Sr., 49, the operator of an electronics store in Northwest Washington, has been found guilty by a jury of charges stemming from the recovery of stolen property from his place of business, U.S. Attorney Ronald C. Machen Jr. announced.
Brown, of Capitol Heights, Md., was found guilty Jan. 16, 2014, following a trial in the Superior Court of the District of Columbia, of charges of felony trafficking in stolen property and misdemeanor receiving stolen property. The Honorable John McCabe scheduled sentencing for April 4, 2014. Under the District of Columbia’s voluntary sentencing guidelines, Brown faces a prison sentence of 10 to 28 months, and a statutory maximum sentence of 10 years.
According to the government’s evidence, on the afternoon of Nov. 22, 2011, the victim was walking northbound on North Capitol Street when her iPhone was snatched from her hand. The victim went to a nearby security guard and contacted police.
After the police arrived, the victim contacted her friend, who, using the “Find My iPhone” application, ultimately tracked the victim’s phone to the vicinity of “12 Volt Mobile Electronics,” the defendant’s business, located in the 300 block of H Street NW. Metropolitan Police Department (MPD) personnel responded to that location, where they made contact with Brown, and subsequently recovered the victim’s iPhone from him.
Brown initially provided an invoice to the police, claiming that the phone had been dropped off with his son to be serviced, but subsequently admitted that the invoice was a fake. Brown was arrested for receiving stolen property and then released pending trial.
On Dec. 2, 2011, MPD personnel returned to “12 Volt Electronics” to execute a search warrant. During the search, they recovered another iPhone that had been stolen in a “snatch robbery” similar to the first victim’s robbery.
In announcing the verdict, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department. He also praised the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigators Derek Starliper, John Marsh, and Durand Odom; Victim/Witness Advocates Jennifer Clark and Katina Adams-Washington; Paralegal Specialists Donville Drummond and Tameka Garcia, and Legal Assistant Sharece Muschettea. Finally, he praised the work of Assistant U.S. Attorney Thomas P. Swanton, who is prosecuting the matter.
14-017Oglala Woman Sentenced for Causing Death of ChildRead the Press Release
United States Attorney Brendan V. Johnson announced that an Oglala, South Dakota, woman convicted of Involuntary Manslaughter was sentenced on January 10, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Red Star-Benson was immediately turned over to the custody of the U.S. Marshals Service.
Elizabeth Red Star-Benson, a/k/a Elizabeth Shantelle Benson, a/k/a Elizabeth Red Star, age 27, was sentenced to 5 years of imprisonment, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
On August 31, 2012, at Porcupine, Red Star-Benson was driving under the influence with a blood alcohol content of .261 and rolled her vehicle on BIA Hwy 27 near KILI radio station. Her four-year old son, who was not properly restrained, was ejected from the vehicle and died at the scene from his traumatic injuries.
The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, and the South Dakota Highway Patrol. The case was prosecuted by Assistant U.S. Attorney Sarah B. Collins.
Obion County Man Sentenced to 120 Months in Prison for Involvement in Large Marijuana GrowoperationRead the Press Release
Memphis, TN – Ignacio Lazcano-Acosta, 52, of Obion County, Tennessee was sentenced yesterday to 120 months in federal prison for his role in one of the largest marijuana grow operations ever discovered in the state of Tennessee, announced United States Attorney Edward L. Stanton III.
According to the facts alleged in the indictment and revealed in court, on October 11, 2011, deputies with the Obion County Sheriff’s Department discovered a large outdoor marijuana grow encompassing 15 acres of plants that were being grown, harvested and processed for distribution. With the assistance of agents from the Drug Enforcement Agency (DEA), the plants were identified as marijuana, and DEA agents were able to identify Lazcano-Acosta as one of the persons involved with the operation.
Lazcano-Acosta pleaded guilty to one count of conspiracy to manufacture marijuana in violation of 21 U.S.C. § 846 on October 7, 2013 before Chief U.S. District Court Judge J. Daniel Breen. There is no parole in the federal prison system.
This crime was investigated by the Obion County Sheriff’s Office, the West Tennessee Drug Task Force, the Tennessee Bureau of Investigation, and the Union City Police Department. The case was prosecuted by Assistant United States Attorney Victor L. Ivy on behalf of the government.Nationwide Contract Therapy Providers to Pay $30 Million to Resolve False Claims Act AllegationsRead the Press Release
Contract therapy providers RehabCare Group Inc., RehabCare Group East Inc. and Rehab Systems of Missouri and management company Health Systems Inc. have agreed to pay $30 million to resolve claims that they violated the False Claims Act by engaging in a kickback scheme related to the referral of nursing home business, the Justice Department announced today. Additionally, as part of this settlement, the entities have agreed to restructure their business arrangement.
“Health care providers that attempt to profit from illegal kickbacks will be held accountable,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “We will continue to advocate for the appropriate use of Medicare funds and the proper care of our senior citizens.”
Between March 1, 2006, and Dec. 31, 2011, RehabCare allegedly arranged with Rehab Systems of Missouri to obtain Rehab Systems of Missouri ’s contracts to provide therapy to patients residing in 60 nursing homes controlled by Rehab Systems majority-owner James Lincoln. In exchange for this stream of referrals, RehabCare allegedly paid Rehab Systems a $400,000 to $600,000 upfront payment and allowed Rehab Systems to retain a percentage of the revenue generated by each referral.
“The Anti-Kickback Statute is intended to protect patients and federal health care programs from fraud and abuse,” said Acting U.S. Attorney for the District of Minnesota John Marti. “We will remain vigilant in pursuing entities that improperly further their financial interest at the expense of the Medicare Trust Fund.”
“This settlement sends a message to those who seek to improperly take advantage of the Medicare program,” said U.S. Department of Health and Human Services Office of Inspector General Special Agent in Charge Gerald T. Roy. “The Office of the Inspector General, Kansas City Regional Office will continue to work aggressively to eliminate this type of misconduct from our health care system.”
“The FBI will continue to work with its partners to combat this type of abuse,” said Special Agent in Charge of the FBI’s Minneapolis Office J. Chris Warrener. “It remains committed to the elimination of fraud to ensure the integrity of federal health care programs.”
This civil settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered more than $17.1 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement resolves allegations originally brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblower will receive $5.7 million as its share of the recovery in this case.
The case was handled by the U.S. Attorney’s Office for the District of Minnesota with assistance from the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Eastern District of Missouri, the Federal Bureau of Investigation and the U.S. Department of Health and Human Services Office of Inspector General. This action was supported by the Elder Justice and Nursing Home Initiative that coordinates the department’s activities combating elder abuse, neglect and financial exploitation, especially as they impact beneficiaries of Medicare, Medicaid and other federal health care programs.
The lawsuit is captioned U.S. ex rel. Health Dimensions Rehabilitation Inc. v. RehabCare Group Inc., et. al., Case No. 4:12-cv-00848 AGF (E.D. Mo.). The claims settled by this agreement are allegations only; there has been no determination of liability.
Nashville Gang Member Sentenced for Shooting in Public HousingRead the Press Release
Gerald Edwin Farmer, aka HK, 24, of Nashville, Tenn., was sentenced today to 210 months (17 ½ years) in prison, announced David Rivera, U. S. Attorney for the Middle District of Tennessee.
Farmer, a Rollin’ 40s Crips street gang member, pleaded guilty in June 2013 to being a felon in possession of ammunition which he used to shoot another person in the densely populated James Cayce public housing development, in Nashville, in November 2011. At that time, Farmer was on state probation for several offenses including an incident in which he shot at two other people. U.S. District Judge Todd Campbell ordered the federal sentence to run consecutively to a four year state sentence for that previous shooting incident.
“This sentence represents another case where we are working with our law enforcement partners to remove career criminals from our neighborhoods for long periods of time,” said U.S. Attorney David Rivera. “Farmer’s actions displayed a complete disregard for innocent life when he chose to fire several rounds in a densely populated area, near houses which were likely occupied by children and other innocent victims. When an individual resorts to this type of violence, a swift and appropriate response from the law enforcement community can be expected.”
According to the facts presented at the guilty plea hearing, Farmer fired several shots at an individual in the housing development near South 7th Street and Shelby Avenue in Nashville. The victim was struck multiple times and subsequently hospitalized for several weeks. Farmer fled the area, but when later arrested, he admitted that he was at the scene of the shooting. Farmer falsely claimed that a specific juvenile had been with him and that the juvenile was actually the shooter.
The subsequent investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, in conjunction with the Metropolitan Nashville Police Department, established that the juvenile was not even at the scene and that Farmer was the actual shooter. The firearm that Farmer used to shoot the victim was not recovered, but he was successfully prosecuted for possession of the ammunition which was used in the shooting.
ATF Special Agent in Charge Jeff Fulton said, “This joint investigation between ATF and the Metro Nashville Police Department illustrates the impact on reducing violent crime when agencies combine and coordinate their skills and resources. ATF remains dedicated to identifying, targeting, and investigating violent criminals who prey upon our citizens and lessen the quality of life in our neighborhoods. This investigation is an example of excellent investigative work and a job well done by the investigators.”
Farmer’s previous convictions included aggravated burglary, conspiracy to commit aggravated robbery, aggravated assault, and drug distribution, which qualified him as an Armed Career Criminal under federal law. Judge Campbell rejected Farmer’s request for concurrent sentencing with his state offenses, finding that Farmer had a history of violent criminal conduct and that this offense “nearly resulted in death.”
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Metropolitan Nashville Police Department. Deputy Criminal Chief Harold McDonough and Assistant United States Attorney Sunny A.M. Koshy represented the United States.
Midland Man Sentenced to Federal Prison for Possessing Child PornographyRead the Press Release
Midland resident Corey Dean Farmer, age 37, will serve 151 months in federal prison followed by a lifetime of supervised release for possession of child pornography announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Special Agent in Charge Dennis A. Ulrich, El Paso.
During yesterday’s sentencing hearing in Midland, U.S. District Judge Robert A. Junell also ordered that Farmer pay $157,143.23 restitution to his victims.
On November 1, 2013, Farmer pleaded guilty to the possession of child pornography charge. By pleading guilty, Farmer admitted using multiple peer-to-programs to search for and acquire images of child pornography beginning in approximately March 2012. Following the execution of a search warrant on May 9, 2013, at the defendant’s residence, HSI agents forensically discovered approximately 1,300 images depicting child pornography on Farmer’s computer. Farmer also acknowledged that because he did not turn off the “sharing” feature of his peer to peer software, other persons around the world were able to acquire CP images from his computer.“This is an appropriate sentence for an individual who criminally engaged in the sexual exploitation of children by freely trading their images with predators worldwide,” said Dennis A. Ulrich, special agent in charge of HSI El Paso. “HSI ranks this type of crime high in its mission priorities, and our agency will continue to dedicate resources to identify and bring to justice other child predators who victimize children in this manner."
Assistant United States Attorney Austin Berry prosecuted this case on behalf of the Government.
Middle Georgia Tax Preparer Enters Guilty PleaRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Jackie Elvine, a/k/a Jackie Young, 39, of Jeffersonville, Georgia, entered a plea of guilty on January 17, 2014, to health care fraud, aiding in the preparation of a false tax return and false claims against the Government. Ms. Elvine entered her plea of guilty before the Honorable Marc T. Treadwell, United States District Court Judge, in Macon, Georgia.As a part of her plea, Ms. Elvine admitted that she established Young's Financial Billing Service in Jeffersonville, Georgia in 2008 as a tax return preparation service. From 2008 to 2010, Ms. Elvine prepared and submitted hundreds of false tax returns. At least 61 of the returns included fraudulent tax credits for first time home buyers. The total amount of those claims was $283,683.00. Also claimed were numerous tax credits for higher education costs that Ms. Elvine knew were not legitimate.
Ms. Elvine also defrauded AFLAC and National Reimbursement Group by filing false health care claims. The amount of loss sustained by AFLAC is $147,483.56. The loss to National Reimbursement Group was $118,446.84.
The Court has scheduled sentencing for Ms. Elvine for April 9, 2014 in Macon, Georgia. She faces a maximum possible sentence of up to ten (10) years imprisonment and a $250,000.00 fine on Count 1, three (3) years imprisonment and a fine of $250,000.00 on Count 2 and five (5) years imprisonment and a fine of $250,000.00 on Count 3.
"Tax fraud and health care fraud end up hurting all of us. From higher health care costs and insurance premiums to depleting resources for tax credits aimed at helping deserving students and home buyers, these types of crimes are far-reaching. The path of greed in this case will likely lead to the federal prison," stated U.S. Attorney Michael Moore.
The case was investigated by the Internal Revenue Service Criminal Investigations, Department of Health and Human Services-Office of lnspector General, Georgia Department of Revenue and Twiggs County Sheriffs Office. Assistant United States Attorney Graham Thorpe is handling the prosecution for the Government.
For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Miami Patient Recruiter Pleads Guilty for <br /> Role in $190 Million Medicare Fraud SchemeRead the Press Release
A patient recruiter for a fraudulent Miami-area mental health company, American Therapeutic Corporation (ATC), pleaded guilty today for her participation in a $190 million Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Miami resident Mayelin Santoyo, 28, pleaded guilty before U.S. District Judge K. Michael Moore in the Southern District of Florida to one count of conspiracy to receive health care kickbacks. Sentencing has been scheduled for March 28, 2014. On Nov. 25, 2013, co-defendant Jose Martin Olivares, 36, also a Miami resident and patient recruiter, pleaded guilty to one count of conspiracy to receive health care kickbacks before U.S. District Judge Donald L. Graham for his role in this scheme. Olivares’s sentencing is set for Feb. 4, 2014.
According to court documents, Santoyo was a patient recruiter for the now-defunct ATC. ATC and its management company, Medlink Professional Management Group Inc., were Florida corporations headquartered in Miami. ATC operated purported partial hospitalization programs (PHPs), a form of intensive treatment for severe mental illness, in seven different locations throughout South Florida and Orlando.
Santoyo recruited Medicare beneficiaries to attend ATC’s PHP program in exchange for kickbacks in the form of checks and cash. The amounts of the kickbacks were based on the number of days each recruited patient spent at ATC. Santoyo knew that the patients she recruited for ATC were not qualified to receive PHP treatment.
ATC’s owners and operators paid millions of dollars in kickbacks to the owners and operators of various assisted living facilities and halfway houses, as well as to patient recruiters, like Santoyo, in exchange for delivering ineligible patients to ATC. According to court documents, to obtain the cash required to support the kickbacks to recruiters such as Santoyo, the co-conspirators laundered millions of dollars of payments from Medicare.
In related cases, ATC, Medlink and various owners, managers, doctors, therapists and patient recruiters of ATC and Medlink have already pleaded guilty or have been convicted at trial. In September 2011, ATC’s owner, Lawrence Duran, was sentenced to 50 years in prison for his role in orchestrating and executing the scheme to defraud Medicare.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case was prosecuted by Assistant Chief Robert A. Zink and Trial Attorney Anne P. McNamara of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.Miami Patient Recruiter Pleads Guilty for Role in $190 Million Medicare Fraud SchemeRead the Press Release
A patient recruiter for a fraudulent Miami-area mental health company, American Therapeutic Corporation (ATC), pleaded guilty today for her participation in a $190 million Medicare fraud scheme.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Miami resident Mayelin Santoyo, 28, pleaded guilty before U.S. District Judge K. Michael Moore in the Southern District of Florida to one count of conspiracy to receive health care kickbacks. Sentencing has been scheduled for March 28, 2014. On Nov. 25, 2013, co-defendant Jose Martin Olivares, 36, also a Miami resident and patient recruiter, pleaded guilty to one count of conspiracy to receive health care kickbacks before U.S. District Judge Donald L. Graham for his role in this scheme. Olivares’s sentencing is set for Feb. 4, 2014.
According to court documents, Santoyo was a patient recruiter for the now-defunct ATC. ATC and its management company, Medlink Professional Management Group Inc., were Florida corporations headquartered in Miami. ATC operated purported partial hospitalization programs (PHPs), a form of intensive treatment for severe mental illness, in seven different locations throughout South Florida and Orlando.
Santoyo recruited Medicare beneficiaries to attend ATC’s PHP program in exchange for kickbacks in the form of checks and cash. The amounts of the kickbacks were based on the number of days each recruited patient spent at ATC. Santoyo knew that the patients she recruited for ATC were not qualified to receive PHP treatment.
ATC’s owners and operators paid millions of dollars in kickbacks to the owners and operators of various assisted living facilities and halfway houses, as well as to patient recruiters, like Santoyo, in exchange for delivering ineligible patients to ATC. According to court documents, to obtain the cash required to support the kickbacks to recruiters such as Santoyo, the co-conspirators laundered millions of dollars of payments from Medicare.
In related cases, ATC, Medlink and various owners, managers, doctors, therapists and patient recruiters of ATC and Medlink have already pleaded guilty or have been convicted at trial. In September 2011, ATC’s owner, Lawrence Duran, was sentenced to 50 years in prison for his role in orchestrating and executing the scheme to defraud Medicare.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case was prosecuted by Assistant Chief Robert A. Zink and Trial Attorney Anne P. McNamara of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Sentenced to 30 Years in Prison in E. Idaho Meth Trafficking CaseRead the Press Release
POCATELLO – Raymond Camacho, a/k/a Jesus Mendoza-Nunez, 58, a Mexican national, was sentenced yesterday in United States District Court to 360 months in prison for possession with intent to distribute more than 50 grams of methamphetamine, U.S. Attorney Wendy J. Olson announced. Camacho will be deported at the conclusion of his prison term. He appeared before Judge N. Randy Smith of the Ninth Circuit Court of Appeals, sitting by designation as a district court judge. The defendant is the sixth person sentenced in the case.
Camacho pleaded guilty to the charge on January 24, 2013. According to the plea agreement, on November 24, 2011, his vehicle was stopped by law enforcement officers in Bannock County, Idaho. A search of the vehicle uncovered approximately three pounds of methamphetamine, which contained more than 50 grams of actual methamphetamine. Based on surveillance and information provided by others, it was determined that Camacho knew the methamphetamine was in the vehicle and intended to distribute to others.
Five co-defendants were sentenced in April and May 2013 to serve federal prison sentences for related drug trafficking offenses. Juan Aguilar, a Mexican national, was sentenced to 120 months; Juan Mendoza, of Menan, Idaho, to 102 months; Douglas I. McAdam, of Pocatello, to 33 months; and Marilyn Leones, of Pocatello, to 25 months. Jose Rios-Jimenez, a Mexican national, was sentenced to 16 months—time served—for possession of a firearm by a prohibited person and illegal entry of a removed alien.
The final defendant in the case, Eldon K. McConnell, 49, of Pocatello, pleaded guilty yesterday to possession with intent to distribute methamphetamine. According to the plea agreement, on November 30, 2011, McConnell was found in possession of 3.7 grams of methamphetamine at a hotel room in Chubbuck, Idaho. Sentencing is set for April 9, 2014, before Chief U.S. District Judge B. Lynn Winmill. He faces up to 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release.
Camacho is the fourteenth defendant to be sentenced to prison for crimes related to methamphetamine trafficking in federal courts in Idaho this week. Ten, including Camacho, were sentenced in federal court in Pocatello. Four were sentenced in Boise. They were sentenced to a total of 1,150 months or more than 96 years in federal prison.
“Methamphetamine is a dangerously addictive substance that does great harm to our Idaho communities,” said Olson. “Law enforcement officers in Idaho at all levels have worked tirelessly to identify, target and investigate major methamphetamine distribution rings in all parts of the state. The fourteen individuals sentenced in federal court this week received firm and just punishment.”
The case was investigated by Idaho State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Chubbuck Police Department.
Meth Lab Dismantled, Pawtucket Man Detained on Federal Drug Trafficking ChargesRead the Press Release
PROVIDENCE, R.I. – Sean Costigan, 51, of Pawtucket, was ordered detained in federal custody today by U.S. District Court Magistrate Judge Patricia A. Sullivan on federal drug trafficking charges, following an investigation by the Warwick Police Narcotics Unit and the R.I. DEA Drug Task Force into the alleged manufacture and distribution of methamphetamine by Costigan, announced United States Attorney Peter F. Neronha, Warwick Police Chief Colonel Stephen M. McCartney, and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s New England field division.
According to an affidavit in support of a criminal complaint filed with the court, in May 2013, Warwick Police, and DEA Drug Task Force agents and officers began an investigation into the alleged trafficking of meth by Costigan. It is alleged that on at least four occasions, between October and December 2013, an undercover law enforcement officer purchased between 1.4 grams and 6.8 grams of meth from Costigan for between $100 and $400 dollars.
On January 16, 2014, DEA agents, DEA Drug Task Force agents and officers and Warwick Police detectives executed a court authorized search of a room in a Newport inn allegedly rented by Costigan, where law enforcement discovered materials used in the manufacture and distribution of meth. Members of the DEA Clandestine Laboratory Tactical Team discovered and seized multiple items associated with a methamphetamine manufacturing operation.
Costigan, who was detained overnight at the Warwick Police Department, made an initial appearance in federal court this afternoon on a criminal complaint which charges him with four counts of trafficking methamphetamine.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Pamela E. Chin.
The DEA Drug Task Force is comprised of law enforcement agents and officers from DEA, Rhode Island State Police, and the Cranston, East Providence, Newport, Pawtucket, Providence, South Kingstown, Warwick and Woonsocket Police Departments.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Mercer County Teen Sentenced to 15 Years in Federal Prison for Armed Robbery of Farrell Convenience StoreRead the Press Release
PITTSBURGH – On Jan. 16, a Mercer County teen pleaded guilty and was sentenced in federal court on charges of violating federal Hobbs Act conspiracy and Hobbs Act robbery laws, United States Attorney David J. Hickton announced today.
Devine Campbell, 19, of Farrell, was 17 years old at the time that he robbed the B&M Market in Farrell on Dec. 20, 2011. Prior to pleading guilty, Campbell waived his right to a juvenile proceeding and agreed to be prosecuted as an adult. Campbell then pled guilty as an adult to two counts before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the Court learned that on Dec. 20, 2011, Campbell, acting together with Joshua Stewart, entered the B&M Market, a local convenience store in Farrell. Upon entering the store, Campbell, brandishing a .22 caliber handgun, fired off two rounds to scare the proprietor of the store. Campbell then forced the store owner to open his register and hand over more than $100 in cash. While Campbell did this, Joshua Stewart kept watch and served as a “lookout,” making sure that the police did not come in the store. In addition, Stewart stole cigarettes from the store. After Campbell secured the money, Campbell backed away from the store owner, and as he did so, he shot the owner once in the hip. Campbell and Stewart then fled from the store. The bullet fired by Campbell remains lodged in the store owner’s hip. Stewart has pleaded not guilty to the robbery of the B&M Market.
Subsequent to pleading guilty, Campbell waived a pre-sentence report and was sentenced by Judge McVerry to 15 years in prison. Under the terms of the plea agreement, 10 years of this sentence are to be served concurrently with Campbell’s state court sentence of 35 years to life imprisonment for second-degree murder. In November, 2013, a jury in Mercer County convicted Campbell of participating in the murder of local bar owner William Basilone. The remaining five years of Campbell’s federal sentence are to be served consecutively to Campbell’s state court murder sentence.
Assistant United States Attorney Eric S. Rosen prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, the Southwest Mercer County Police, and the Mercer County District Attorney’s Office conducted the investigation that led to the prosecution of Devine Campbell.
Mentmore, N.M., Woman Sentenced to Sixty-Three Months in Prison for Voluntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Bertha Damon, 44, an enrolled member of the Navajo Nation who resides in Mentmore, N.M., was sentenced to 63 months in federal prison followed by three years of supervised release for her voluntary manslaughter conviction.
On Sept. 16, 2013, Damon pleaded guilty to a felony information charging her with killing a man by striking him with a piece of firewood on the Navajo Indian Reservation on May 21, 2011. The guilty plea was entered without the benefit of any plea agreement.
According to court filings, Damon and the victim, her husband of 24 years, returned to their home after a night of drinking and began arguing. During the argument, Damon repeatedly struck the victim in the head with a piece of firewood. The victim died as the result of multiple blunt force traumas to the head.
Damon, who has been on conditions of release since entering her guilty plea, is required to surrender to a federal correctional facility to be designated by the U.S. Bureau of Prison within 60 days.
This case was investigated by the Gallup office of the FBI, the Crownpoint office of the Navajo Nation Division of Public Safety and the New Mexico State Police. Assistant U.S. Attorney Jacob A. Wishard prosecuted the case.Memphis Man Sentenced to 210 Months on Drug Conspiracy and Gun ChargesRead the Press Release
Memphis, TN – Lewis Gibson, 29, of Memphis, TN, was sentenced yesterday to 210 months in federal prison for his role in a conspiracy to distribute over 500 grams of cocaine, announced U.S. Attorney Edward L. Stanton III.
According to facts alleged in the indictment and revealed during court hearings, officers with the Memphis Police Department’s Organized Crime Unit received a tip that Gibson was selling a large amount of cocaine from his residence. Surveillance by the officers revealed a large amount of foot traffic consistent with illegal drug sales.
After obtaining a search warrant, officers detained Gibson and searched his home, where they recovered cocaine base (crack), heroin, powder cocaine, $10,000 in cash, and a .357 caliber pistol, in addition to other items.
On August 22, 2013, Gibson pleaded guilty to one count of conspiracy to distribute over 500 grams of cocaine and one count of being a felon in possession of a firearm. In addition to the 210 month sentence for conspiracy to distribute, U.S. District Judge S. Thomas Anderson sentenced Gibson to a concurrent term of 120 months for firearms possession. Gibson will further be required to serve four years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Memphis Police Department’s Organized Crime Unit. Assistant U.S. Attorney Jerry Kitchen represented the government.
This case was prosecuted under the authority of the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.Massillon Man Sentenced to More Than Three Years in Prison for Embezzlement and Tax EvasionRead the Press Release
A Massillon man was sentenced to more than three years in prison for defrauding four clients out of $442,072, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
David Lee Cheviron, 61,was sentenced to 38 months in prison by U.S. District Judge Donald C. Nugent. The judge also ordered Cheviron to pay $442,072 to the victims and $85,616 to the IRS.
Cheviron was a financial consultant at First Merit Bank, Huntington Bank, and JP Morgan Chase Bank between 2006 and 2010, during which time he embezzled the money from the clients. Cheviron converted the money for his own personal use. He also failed to report the funds he received from the schemes on his federal tax returns, according to court documents.
He pleaded guilty last year to one count each of bank embezzlement and tax evasion.
This case is being prosecuted by Assistant United States Attorney Vasile C. Katsaros, following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service.
Maryland Man Sentenced to 12 Years in Prison for Real Estate FraudRead the Press Release
Defendant targeted vulnerable properties, stole identities using fraudulent probate court proceedings
ALEXANDRIA, Va. – Colin Conroy Williams, 42, of Dayton, Md., was sentenced today to 12 years in prison, followed by three years of supervised release, for serving as the mastermind of a multi-year conspiracy to commit real estate fraud.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by United States District Judge Gerald Bruce Lee.
Williams pleaded guilty on Oct. 28, 2013 to conspiracy to commit wire fraud, wire fraud, aggravated identity theft and money laundering. According to court records, much of Williams’ criminal activity involved fraudulently selling homes that did not belong to the purported property owner. As part of this scheme, Williams first would identify vulnerable properties based on several characteristics—for example, because the property had significant tax liabilities, the true owners lacked a sophisticated understanding of real estate transactions, or the true titleholder had died recently and the rightful heirs had not come forward to claim the property.
Williams used a variety of means to identify the vulnerable properties. He sometimes would visit the D.C. tax courts to identify properties with overdue property tax bills, which was an indication that the rightful owner was not alive or able to pay those tax bills. In other instances, Williams would use open source or subscription services, such as ancestry.com and the D.C. property tax database, to determine whether a particular property was owned by a recently deceased person and whether that person had any living or nearby relatives.
After identifying vulnerable properties, Williams would manipulate the District of Columbia Probate Court process to have a co-conspirator appointed as a “personal representative” for the rightful owner. Williams then would arrange for that newly appointed representative to sell the property without the rightful owner’s knowledge. In so doing, Williams stole multiple identities belonging to the living or recently deceased property owners.
Williams conducted this scheme on at least five homes, including after he knew that he was under investigation by the FBI. He also conducted this scheme despite knowing that two of the actual homeowners were alive. Nevertheless, once the properties were sold, Williams would keep hundreds of thousands of dollars in proceeds for himself, which he laundered to buy expensive cars and fancy jewelry.
Before Williams began conducting this “personal representative” scheme, he repeatedly engaged in more conventional real estate fraud, including directing co-conspirators to lie on loan documents and placing false liens on homes to force his victims to pay him thousands of dollars before they could sell their homes. All told, Williams defrauded numerous victims of more than $1,700,000 in actual and intended losses.
This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorneys Chad Golder and Kosta Stojilkovic prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce the Arrest of Australian Man for Extorting Minors into Creating Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced criminal charges against MARK ANTHONY WARREN for engaging in a scheme to lure minor children over the Internet into engaging in sexually explicit conduct, which WARREN secretly recorded and threatened to disseminate unless the minor children produced and sent him additional sexually explicit videos. WARREN was charged with production and receipt of child pornography, and extortion. Based on information provided by the FBI, WARREN was arrested yesterday in Australia by the New South Wales Police Force, and charged with related offenses.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Mark Anthony Warren used social media and phony profiles to ensnare his minor victims and later force them into engaging in sexually explicit acts that he recorded. Warren allegedly believed he could hide behind the anonymity of the Internet and use special computer software to escape detection, but he was sorely mistaken. Protecting minors from individuals who prey on and attempt to exploit them is a high priority of this Office, and thanks to the outstanding efforts of FBI agents and our prosecutors, Warren will be made to answer for his alleged crimes.”
FBI Assistant Director-in-Charge Venizelos said: “Warren was arrested today for allegedly developing unsuspecting male minors into subjects of his self-directed production of child pornography. Posing as a teenager himself, he coerced them into engaging in sexually explicit conduct and later tormented them with the threat of releasing proof of this conduct to their families and friends. Once removed, the virtue of innocence can never be restored. The exploitation of minors is a cause of great concern, and the FBI will continue to go after networks of online pedophiles and other sexual predators who use the Internet to sexually exploit children.”
According to the allegations contained in the criminal Complaint unsealed today:
From at least November 2013 to December 2013, MARK ANTHONY WARREN used multiple false identities and posed as a teenage girl in order to trick, coerce, and extort minor male victims into producing child pornography at his direction. In particular, WARREN created bogus accounts on various social media websites using false identities and posing as various teenage girls and a teenage boy. Using these bogus accounts, WARREN contacted male minors, including a 14 year-old in New York, New York, and, posing as a teenage girl, engaged them in sexually explicit discussions via online chats. During these chats, WARREN showed the minor males a pornographic video of a young woman who WARREN claimed to be, and simultaneously secretly video recorded the minor males engaging in sexually explicit conduct.
After making these secret pornographic recordings of his minor victims, WARREN contacted them again online and threatened to publish the videos to the victims’ families and friends unless the victims created additional pornographic videos of themselves and uploaded them to a particular website accessible by WARREN. WARREN provided the victims with specific, detailed instructions about the sexually explicit videos they were to make at his direction. He further threatened that if the minor male victims went to law enforcement, the victims would be arrested and charged with child pornography crimes. WARREN also told his victims that he used particular computer software to obscure his identity, and that he was beyond the reach of law enforcement.
WARREN, 49, of New South Wales, Australia, is charged with one count of production of child pornography and one count of attempted production of child pornography, each of which carries a mandatory minimum sentence of 15 years in prison, and a maximum sentence of 30 years in prison. He is also charged with one count of receipt and distribution of child pornography, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison, as well as one count of extortion, which carries a maximum sentence of two years in prison.
Mr. Bharara praised the outstanding investigative work of the FBI. He also thanked the New South Wales, Australia, Police Force and the Australian Federal Police. Mr. Bharara added that the investigation is continuing.
The FBI encourages the public to report suspected child predators and any suspicious activity through their switchboard at (212) 384 -1000. It is staffed around the clock by investigators. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at 1-800-843-5678 or http://www.cybertipline.com.
The prosecution is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorneys Eun Young Choi and James Pastore are in charge of the prosecution.
The charges contained in the Complaint are merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Mark Anthony Warren Complaint
Man Arrested for Sending Threatening Interstate Communications via FacebookRead the Press Release
SAN JUAN, Puerto Rico – This morning FBI agents in the Tampa area arrested Jorge Jimenez for his violation of 18 U.S.C. section 875(c) for sending threatening interstate communications to J.P., an adult male residing in Puerto Rico, via Facebook, announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez.
On December 5, 2013, a federal grand jury returned a true bill that charged Jorge Jimenez, a Florida resident, with making threatening interstate communications via Facebook to J.P., in violation of Title 18 of the United States Code, Section 875(c).
On August 3, 2013, Jimenez transmitted several threatening messages directly to J.P.’s Facebook inbox, as follows:
“Mr. Maurice Spagnoletti had a bachelor of Science (BS) from St. Peter’s (PIERLUISI) College … I WONDER WHO DID THAT HIT … HE WILL HAVE HIS REVENGE. Sincerely, William the Lion.”
“They are going to stick a screwdriver in both the eyes, then they will stick a hot bar in his ass… and to complete the job, they will proceed to cut with a lovely AXE. after the deed is done, William the Lion asks, What You Gon Do?
The transmission sent to J.P. by Jorge Jimenez included pictures of a decapitated individual, an axe, pictures of eyes, a screwdriver, and made reference to a family member of J.P.If convicted, the defendant faces up to five years imprisonment, three years of supervised release, and a $250,000 fine. The case is being prosecuted by Assistant U.S. Attorney Luke Cass.
Local Tax Preparer Indicted on Fraud ChargesRead the Press Release
St. Louis, MO - The owner and operator of a St. Louis County tax preparation service was indicted yesterday for filing false returns and stealing the identities of taxpayers. RONALD SHONIWA, of Florissant, faces one count of theft of government funds for filing 15 tax returns, which generated more than $50,000 in improperly paid refunds, and two counts of aggravated identity theft for stealing the names and social security numbers of unsuspecting citizens and filing fraudulent returns in their names without their consent or knowledge.
If convicted, the theft of government funds count carries a maximum penalty of ten years, and/or a fine of up to $250,000. The aggravated identity theft counts are punishable by two years mandatory imprisonment and a fine of up to $250,000. The sentence for aggravated identity theft runs consecutively to any sentence imposed on the theft of government funds count. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Additionally, restitution to the IRS for the improperly paid refunds will be sought.
United States Attorney Richard Callahan noted that "stolen identity refund fraud is a large and growing problem across the country, and the IRS and Justice Department dedicates substantial resources in fighting it, particularly at this time of year."
"Taxpayers should exercise caution when choosing a tax professional, especially since you will hand over your personal and financial identifying information," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. "They should also be aware of the many free, professional tax preparation services available to low and moderate income taxpayers and senior residents throughout St. Louis."
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Leitchfield, Kentucky Man Sentenced to Ten Years in Prison for Possession and Distribution of Child Pornography ImagesRead the Press Release
OWENSBORO, Ky. - A Leitchfield, Kentucky man was sentenced to ten years in prison, followed by ten years of supervised release today, in United States District Court, before Chief District Judge Joseph H. McKinley Jr., after pleading guilty to violating federal child pornography laws including the possession and distribution of child pornography announced David J. Hale, United States Attorney for the Western District of Kentucky.
Michael Brandon Thompson, age 29, admitted in court to using a peer to peer file sharing network to allow others to download images of child pornography between July 18, 2011 and September 2, 2011. According to the factual basis found in an Affidavit attached to a Criminal Complaint, a detective with the Colorado Springs Police Department, utilizing the peer-to-peer file sharing network downloaded several password-protected files from Thompson. During the download, the detective was able to preview approximately 300 video files containing images of children engaged in sexually explicit conduct. The Colorado law enforcement official forwarded the lead to the Kentucky State Police who executed a state search warrant on Thompson’s home. They seized computer equipment and storage devices for digital media. A forensic examination of those items revealed tens of thousands of videos and still images of child pornography, including the depictions of infants being sexually abused.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Kentucky State Police conducted the investigation through Kentucky’s Internet Crimes Against Children “ICAC” task force.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Leader of Identity Theft Ring Targeting Government Employees Sentenced to 10 YearsRead the Press Release
ALEXANDRIA, Va. – Christopher Bush, 40, of District Heights, Md., was sentenced today to 10 years in prison, followed by four years of supervised release, for bank fraud, access device fraud, and aggravated identity theft. Bush was also ordered to pay full restitution to the victims.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Kathy A. Michalko, Special Agent in Charge for the United States Secret Service’s Washington Field Office; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by United States District Judge Claude M. Hilton.
Bush pleaded guilty on October 11, 2013.
According to court documents, between January 2012 and July 2013, Bush and co-leader Jenaro Blalock recruited individuals with access to identity information through their employers to steal over 600 identities. Bush used the stolen identities to make fraudulent driver’s licenses bearing the victims’ real names, addresses, and dates of birth. Members of the identity theft ring, including Bush himself, used those fraudulent driver’s licenses and victims’ social security numbers to open credit lines at retailers and obtain rental cars, which were frequently sold on the black market with altered vehicle identification numbers. Bush’s associate, Adrienne Pritchett, stole more than 450 identities from her employer, an insurance provider catering to employees of the U.S. Department of State, U.S. Department of Defense, and the U.S. Agency for International Development. In court documents, Bush acknowledged that the identity theft ring caused victim losses of between $400,000 and $1,000,000.
On January 10, 2014, Pritchett was sentenced to 57 months for her role in the ring. Co-leader Jenaro Blalock will be sentenced on February 14, 2014.
This case was investigated by the United States Secret Service and the Fairfax County Police Department, with assistance from the City of Fairfax Police Department, Prince George’s County W.A.V.E. (Washington Area Vehicle Enforcement), Prince George’s County Financial Crimes Section, the Metropolitan Washington Airport Authority, Delaware State Police, Maryland State Police, D.C. Metropolitan Police Department, U.S. Postal Inspection Service, the Office of the Inspector General of the U.S. Department of Agriculture, and the Office of the Inspector General of the U.S. Department of State. Assistant United States Attorney Lindsay Kelly and Special Assistant United States Attorney Peter Roman of the Department of Justice’s Computer Crimes and Intellectual Property Section prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.