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Wednesday 20 November 2013
Long Island Nurse Practitioner and Brooklyn Podiatrist Plead Guilty to Illegally Distributing OxycodoneRead the Press Release
Rools Deslouches, a Brentwood, New York, nurse practitioner, pled guilty today in the United States District Court for the Eastern District of New York to illegally distributing the highly addictive painkiller oxycodone to customers, whom the defendant knew were drug dealers and addicts, without performing any meaningful medical examination. When sentenced, Deslouches faces up to 20 years in prison and a $1,000,000 fine. Deslouches also agreed to forfeit more than $150,000 in illegal proceeds from his criminal activity.
Defendant Owusu Sold Oxycodone Prescriptions
Written in the Names of Individuals Never ExaminedIn a separate case, Stephen Owusu, a Brooklyn, New York, podiatrist, pled guilty today in the United States District Court for the Eastern District of New York to the illegal distribution of oxycodone to individuals who were not his patients in exchange for cash. When sentenced, Owusu faces up to 20 years in prison and a $1,000,000 fine. Owusu also agreed to surrender his DEA registration number, which had permitted him to issue controlled substance prescriptions.
The guilty pleas were announced by Loretta E. Lynch, the United States Attorney for the Eastern District of New York, and Brian R. Crowell, Special Agent in Charge of the United States Drug Enforcement Administration (DEA), New York Division.
“Instead of providing needed medical services to their communities, Deslouches and Owusu fueled the prescription drug crisis that has swept across our district and our nation. On the defendants’ watch, drug dealers and drug addicts found easy access to oxycodone pills,” stated Ms. Lynch. “Today’s convictions should serve as a warning to those who would violate their oath as medical professionals to do no harm: if you illegally distribute prescription drugs, you will be held accountable.” Ms. Lynch extended her grateful appreciation to the DEA, Suffolk County Police Department, and the New York State Police for their assistance in this case.
“Medical professionals who traffic narcotics are significantly responsible for the pain pill and heroin addiction we see in NY. These traffickers are one of our top priorities,” stated DEA Special Agent in Charge Crowell. “Lines of individuals filled the waiting room outside of Deslouches’ office to pay between $200 to $400 per visit to leave with a prescription; while Owusu sold over 450 prescriptions for oxycodone for $300 per prescription. Neither Deslouches nor Owusu practiced medicine, but they did practice in drug dealing. Law enforcement continues to focus our resources on those who divert prescription medication for abuse and profit.” SAC Crowell commends the US Attorney’s Office Eastern District of New York, DEA Long Island District Office, and TDS, which includes agents and officers from the DEA, Nassau County Police Department, New York State Police, Rockville Centre PD, and Port Washington PD.
According to court filings, the investigation revealed that Deslouches ran a cash-only business, where his customers paid him between $200 and $400 for oxycodone prescriptions. Further, the investigation determined that between October 2011 and February 2012, Deslouches issued 4,349 oxycodone prescriptions for a total of 422,107 pills to over 288 individuals. Approximately one-third of those individuals had criminal records for narcotics-related offenses.
According to court filings, the investigation revealed that between March 2009 and July 2011, Owusu sold over 450 prescriptions for oxycodone to individuals who were not his patients, for $300 a prescription. Those pills were then later sold to narcotics users in street level narcotics transactions.
Deslouches and Owusu’s convictions resulted from the Eastern District of New York’s Prescription Drug Initiative (Initiative), which is a joint effort led by the United States Attorney’s Office for the Eastern District of New York, the DEA, and the five District Attorneys in Kings, Nassau, Queens, Richmond, and Suffolk Counties, working in conjunction with the New York City Police Department and the Nassau and Suffolk County Police Departments, as well as the Department of Health and Human Services, the Internal Revenue Service, New York/New Jersey HIDTA, the New York State Department of Health, and the New York State Medicaid Inspector General. The Initiative is a broad and comprehensive approach to the epidemic of prescription drug trafficking and abuse, involving not only criminal investigation and prosecution at the federal, state, and local level, but also the targeted use of civil law enforcement, regulatory action, and community outreach. The Initiative has expanded information-sharing among federal and state enforcement agencies to better identify and target suspected traffickers, and ensure greater use of criminal, civil, forfeiture, injunctive, and other tools. Since the inception of the Initiative, the United States Attorney’s Office for the Eastern District of New York has prosecuted approximately 68 defendants on charges relating to the distribution of oxycodone and other prescription drugs. Among the defendants prosecuted, are 12 health care professionals, including medical doctors, pharmacists, a nurse practitioner, and a podiatrist, and seven of these defendants have pled guilty or been convicted after trial and the others are pending trial.
Deslouches’s plea was entered before United States District Judge Sandra J. Feuerstein, and Owusu’s plea was entered before United States Magistrate Judge William D. Wall, at the United States Courthouse in Central Islip, New York.
Deslouches’s case is being prosecuted by Assistant United States Attorney Michael P. Canty, and Owusu’s case is being prosecuted by Assistant United States Attorney Lara Treinis Gatz.
The Defendants:
ROOLS DESLOUCHES
Brentwood, New York
Age: 42STEPHEN OWUSU
Valley Stream, New York
Age: 57John Ryan Hugs Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on November 20, 2013, before U.S. District Judge Donald W. Molloy, JOHN RYAN HUGS, a 33-year-old resident of St. Xavier, was sentenced to a term of:
Probation: 4 years
Special Assessment: $10
HUGS was sentenced after a federal district court trial in which he was found guilty of assault by beating, striking, or wounding. Assistant U.S. Attorney Lori Harper Suek prosecuted the case for the United States.
The investigation was conducted by the Federal Bureau of Investigation.
Individual Indicted for Hobbs Act and CarjackingRead the Press Release
SAN JUAN, Puerto Rico — Today, William Santiago-Reyes was arrested for carjacking, possession of a firearm during and in relation to a crime of violence, and two Hobbs Act violations, one which resulted in murder, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. William Santiago-Reyes was indicted on November 5, 2013.
On or about May 5, 2012, the defendant did unlawfully take approximately $18,970.07 from the Plaza Loíza Supermarket, located in Carolina, PR, from the person and presence of employees and representatives of Plaza Loíza, by threatening the employees and representative victims with a firearm, that is a Colt revolver 38 caliber, and shooting and killing a security guard referred to as NMB, who had been contracted to pick up the money that was the object of the robbery at Plaza Loíza, and safely deliver it to its destination.
According to the information contained in the indictment that was unsealed today, on May 3, 2012, Santiago-Reyes, with the intent to cause death or serious bodily harm, did intentionally take a motor vehicle from the victim TRR, that is, a 2003 Mitsubishi Lancer, which had been transported, shipped or received in interstate commerce, by force, violence and intimidation with a gray revolver of unknown make and caliber.
On May 4, 2012, Santiago-Reyes did unlawfully take approximately $397.00 from Island Finance, located in Trujillo Alto by threatening the employees at gunpoint.
“This defendant carried out two Hobbs Act violations, one which resulted in the death of an innocent security guard, and a carjacking against a defenseless victim,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “I commend our law enforcement partners who tirelessly investigated this matter, for their persistence and dedication to the cause of justice. This individual will no longer have the ability to terrorize the law-abiding citizens of Puerto Rico and will be prosecuted to the full extent of the law.”
Hueytown Man Sentenced to 18 Years in Prison for Armed Pharmacy RobberiesRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Hueytown man to 18 years in prison for a series of armed pharmacy robberies in 2011 and 2012, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
U.S. District Judge Abdul K. Kallon sentenced ANTHONY YOUNG, 22, in accordance with a binding plea agreement Young entered with the government. The agreement specified an 18-year prison sentence for Young's pleas of guilty to three pharmacy robberies in the Birmingham metro area and to brandishing a firearm during one of the robberies. Cash and controlled substances, including narcotic painkillers, were taken in all three robberies.
Brandishing a firearm during a crime of violence carries a minimum sentence of seven years in prison and a maximum of life, and the sentence must be served after completion of any other sentence imposed for the crime. Judge Kallon sentenced Young to 11 years in prison for the pharmacy robberies, followed by seven years for brandishing the gun during a robbery.
Young pleaded guilty in August to robbing Moore's Pharmacy on Ensley Avenue in Birmingham on July 30, 2011, Campbell's Pharmacy on Veterans Memorial Drive in Adamsville on Aug. 27, 2011, and Helena Hometown Pharmacy on Alabama Highway 17 in Helena on March 13, 2012. He admitted to brandishing a gun during the Helena robbery.
Two co-defendants in the case, Birmingham cousins Willie and Sterling Edwards, pleaded guilty earlier this year to their roles in the pharmacy robberies. Willie Edwards, 40, pleaded guilty to robbing Moore's Pharmacy and to brandishing a gun during the robbery. Judge Kallon sentenced him in April to 20 years and one month in prison.
Sterling Edwards, 21, pleaded guilty to the Helena Hometown pharmacy robbery and to a second robbery at Campbell's pharmacy, on Oct. 13, 2011. He also pleaded guilty to brandishing a gun during the Helena robbery. Judge Kallon sentenced Sterling Edwards in July to 11 years and nine months in prison.
The robbers in all four crimes entered the pharmacies and demanded the narcotics Lortab or Oxycontin, according to court documents.
The FBI and Birmingham, Adamsville and Helena police departments investigated the case. Assistant U.S. Attorneys Joseph P. Montminy and Robin B. Mark prosecuted the case.
Hogsett Announces Federal Indictment of Spencer County School OfficialRead the Press Release
EVANSVILLE – U.S. Attorney Joseph H. Hogsett announced today the filing of federal charges against Melissa Isaacs, age 49, of Spencer County. According to a four count indictment returned by a grand jury this week, Isaacs allegedly used her position with the North Spencer County School Corporation to engage in a four year scheme to defraud Hoosier taxpayers of approximately $63,000 in school funds.
“When Hoosiers steal from Hoosiers, we all lose – no matter if the theft takes place in a back alley or a back office,” Hogsett said. “That is why, together with our law enforcement partners, we are committed to doing all we can to hold accountable those who seek to enrich themselves by embracing a culture of corruption.”
The indictment alleges that Isaacs served as the Extracurricular Treasurer for the North Spencer County School Corporation from June 5, 2007, through February 25, 2013. During that period of time, the defendant collected and distributed funds for a variety of school programs, including school lunches, textbook rental fees, the athletic fund, as well as funds for other extracurricular programs operating within the school system.
Isaacs allegedly used her position to embezzle, steal, and intentionally misapply funds from these programs from July 2009 until February of this year. This included the alleged theft of textbook rental fees, extracurricular funds, school lunch fees, as well as fraudulent claims for compensation. The indictment provides a detailed breakdown of the alleged thefts by year, which include:
2009-10 School Year: $19,368.91
2010-11 School Year: $13,703.74
2011-12 School Year: $12,542.37
2012-13 School Year: $18,241.62Hogsett said this case was the result of outstanding law enforcement work by the Federal Bureau of Investigation, the Indiana State Board of Accounts, as well as the Spencer County Prosecutor’s Office. All of these agencies are partners in the U.S. Attorney's Public Integrity Working Group, which was launched in April 2012 with the stated purpose of aggressively investigating allegations of public fraud, waste and abuse by public officials in Indiana. Hoosiers with information on public corruption are encouraged to contact the U.S. Attorney's Office at (317) 229-2443.
According to Senior Litigation Counsel Bradley A. Blackington, who is prosecuting the case for the government, Isaacs could face up to ten years in federal prison on each count if convicted, as well as significant fines and federally-supervised release at the end of her prison term.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Grand Jury Returns IndictmentsRead the Press Release
MINNEAPOLIS—A federal grand jury in the District of Minnesota, sitting in Minneapolis, returned the following indictments yesterday. You are advised that a charge is merely an accusation, and that a defendant is presumed innocent until and unless proven guilty. Any sentence is determined by a federal district judge.Crystal man charged with robbing Roseville bank
Jake Charles Cogswell, age 30, of Crystal, was charged with one count of armed bank robbery and one count of brandishing a firearm in furtherance of a crime of violence. If convicted, Cogswell faces a potential maximum 25 years in prison on the bank robbery count. In addition, he faces a mandatory consecutive seven years on the brandishing a firearm count. This case is the result of an investigation by the Federal Bureau of Investigation and the Roseville Police Department. It is being prosecuted by Assistant United States Attorney Nathan P. Petterson.Gadsden Man Sentenced to 17 1/2 Years in Prison for 2008 Bank RobberyRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Gadsden man to 17 years and six months in prison for his role in the 2008 robbery of the Wachovia Bank in Lenlock, Ala., announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
A federal jury in July convicted MARCUS TYSHUN PORTER, 33, of joining in a conspiracy and acting as a lookout during the July 16, 2008, Wachovia Bank robbery. U.S. District Judge Abdul K. Kallon sentenced Porter to prison and ordered him to pay $277,773 restitution to the bank.
Two of Porter’s co-conspirators, WILLIS LEACH, 32, of Gadsden, and JESSE KEY, 43, of Birmingham, pleaded guilty to robbery charges in June. Key also pleaded guilty to carjacking. A third man, GABRIEL RICE, 25, of Gadsden, was charged and pleaded guilty to the robbery and carjacking in 2008.
Immediately after robbing the bank, Key and Rice forced two women at gunpoint to drive them back to Gadsden, where they met Porter and split proceeds of the robbery.
In October, Judge Kallon sentenced Key to 14 years, six months in prison, and Leach to five years and 10 months in prison. In 2009, U.S. District Judge Sharon Lovelace Blackburn sentenced Rice to 17 years in prison.
“The last of the men responsible for these violent crimes is finally on his way to prison," Vance said. “This case is part of a larger investigation involving a string of bank robberies occurring in Gadsden and the surrounding area since 2007. The FBI and the entire Etowah County law enforcement community have continued to work over the past five years to solve these crimes,” she said.
The FBI investigated the case, and Assistant U.S. Attorney L. James Weil Jr. and Special Assistant U.S. Attorney E. Wilson Hunter prosecuted it.Former Union County, N.J., Vendor Admits to Paying Bribes and Defrauding County of More Than $120,000Read the Press Release
NEWARK, N.J. – The owner of a company that sold maintenance and cleaning supplies today admitted paying bribes to a Union County official and to defrauding the county of more than $120,000 in connection with the purchases, U.S. Attorney Paul J. Fishman announced.
Richard Greer, 54, of Marlboro, N.J., pleaded guilty to an information charging one count of conspiracy to commit mail fraud. Greer entered his guilty plea before U.S. District Judge William H. Walls in Newark federal court.
According to documents in this case and statements made in court:
From 2006 to 2011, Greer owned and operated Positive Attitude LLC, a commercial vendor that sold, among other products, maintenance and cleaning supplies to Union County. Aniello Palmieri, 57, of Toms River, N.J., was the director of the Division of Facilities Management for Union County, and oversaw the purchasing of building materials, tools, hardware, janitorial supplies and other supplies used by the various bureaus of the division.
Greer made cash bribe payments to Palmieri of $500 per month in exchange for ensuring continued Union County business for Positive Attitude. Greer generated fictitious invoices to Union County for many industrial cleaning products to cover the monies paid to Palmieri, often including a profit for himself above the kickback he paid to Palmieri. Positive Attitude received $120,000 to $200,000 in fraudulent proceeds from the fictitious invoices. Greer used the mails to facilitate this scheme by having Union County send the checks in payment for these purchases to his company in Marlboro.
The conspiracy to commit mail fraud charge to which Greer pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine. The plea agreement requires that Greer pay restitution of $185,000. Greer is scheduled to be sentenced on March 11, 2014.
On Oct. 2, 2013, Palmieri and Frank Donald Vicendes III, 48, of Berkeley Heights, a Union County vendor, also admitted to engaging in a similar bribery scheme and to defrauding Union County of more than $120,000 in connection with sale of supplies to Union County. Palmieri and Vicendes entered their guilty pleas to mail fraud before Judge Walls in Newark federal court. Palmieri and Vicendes face the same penalties as Greer and are scheduled to be sentenced on Jan. 8, 2014, and Jan. 7, 2014, respectively.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and the N.J. State Police, under the direction of Col. Joseph R. Fuentes, superintendent of the state police, for the investigation leading to the guilty pleas. He also thanked the N.J. Attorney General’s Office under the direction of Acting Attorney General John Hoffman and Elie Honig, director of the N.J. Division of Criminal Justice, for their work in this investigation.
The government is represented by Assistant U.S. Attorney Amy Luria of the U.S. Attorney’s Office Special Prosecutions Division in Newark, and Special Assistant U.S. Attorney Michael A. Monahan, the deputy chief of the Corruption Bureau, Division of Criminal Justice, in the N.J. Office of the Attorney General.
13-441
Defense counsel: Marc A. Agnifilo Esq., New York
Greer Information
Palmieri Information
Vicendes InformationFormer Teller at Taupa Lithuanian Credit Union Charged for His Role in CollapseRead the Press Release
A former employee of Taupa Lithuanian Credit Union was criminally charged for his role in a conspiracy that led to the Cleveland institution’s collapse earlier this year, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
Michael Ruksenas, 33, of Naples, Florida, was charged via criminal information with one count of conspiracy to commit theft or embezzlement from a credit union. His role in the conspiracy resulted in a loss to Taupa of more than $480,000, according to the charges
“This defendant is part of a group that took advantage of the trust of hundreds of people for their own personal gain,” Dettelbach said.
“Michael Ruksenas is accused of being a willful beneficiary of a financial scam being committed on members of the Taupa Lithuanian Credit Union,” Anthony said. “The FBI will continue efforts to see that fraudsters such as Mr. Ruksenas are brought to justice.”
From 2007 through this year, Ruksenas, Alex Spirikaitis (not charged herein) and others engaged in a conspiracy to commit theft or embezzlement from the credit union, according to the information.
Ruksenas worked as a teller from 1999 through 2006 at Taupa, which was located at 767 East 185th Street in Cleveland. Spirikaitis routinely reviewed the daily share draft report, circled names of certain members listed on the report with NSF checks, and instructed Ruksenas in his capacity as teller to honor and pay the NSF checks Spirikaitis had circled, according to the information.
After Ruksenas learned Spirikaitis honored overdrafts from certain accounts, he withdrew funds from his two accounts. Spirikaitis then transferred funds from Taupa directly into Ruksenas’ personal accounts to cover Ruksenas’ overdrafts, according to the information.
Also, Ruksenas worked as a home health aide for one of Spirikaitis’ relatives from 2007 through 2009, during which time Spirikaitis used credit union funds to purchase Ruksenas a Jeep Cherokee, according to the information.
As a result of the conspiracy, Taupa and the National Credit Union Association (which insures credit unions) lost approximately $481,502, according to the information.
On July 12, 2013, the NCUA and the Ohio Department of Commerce took possession of Taupa and placed it into receivership due to its insolvency. Taupa had about 1,150 members and assets of approximately $24 million, according to the information.
This case is being prosecuted by Assistant United States Attorney Robert J. Patton and Special Assistant United States Attorney Derek Kleinmann. The case was investigated by the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information is only a charge 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.
Former Oil and Gas Company Executive Pleads Guilty to $700,000 Embezzlement and Tax CrimesRead the Press Release
TULSA, Okla. — A former oil and gas company manager has pleaded guilty to wire fraud involving the embezzlement of $693,300 and for tax crimes, announced United States Attorney Danny C. Williams, Sr. for the Northern District of Oklahoma.
James Rhea Cooley, 45, of Tulsa, was charged with one count of wire fraud and three counts of willfully making and subscribing a false federal income tax return. Cooley worked as the Regional Human Resources Manager at Newfield Exploration Mid-Continent Inc. where he was authorized to approve invoices for services provided to the company.
According to court documents filed in the case, from August 2008 to January 2011, Cooley devised and executed a scheme to defraud his then-employer. In 2008, he created the consulting company, Total HR Service and Consulting, created a website, and opened a bank account. He would then falsify invoices for services that had not been performed, and deposit the payment check from Newfield Exploration Mid-Continent Inc. into the nonexistent consulting company’s bank account. Cooley would then spend the embezzled funds for personal expenses.
Cooley also agreed to a criminal forfeiture money judgment in the amount of $693,300.
The case was investigated by the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Charles M. McLoughlin and Catherine Depew on behalf of the United States.
Sentencing has been set for February 25, 2014 before U.S. District Judge James H. Payne.
Former Mayoral and Congressional Candidate Sentenced to 15 Years in Prison in BP Oil Fraud SchemeRead the Press Release
A 46-year-old Livonia man was sentenced today to 15 years in prison on three counts of mail fraud, United States Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Jeffrey Frost, Special Agent in Charge of Secret Service, Detroit Field Office.
U.S. District Judge Stephen J. Murphy, III, imposed sentence on Duane Montgomery, who ran for Mayor of Detroit in 2009, and for a congressional seat in 2010. Montgomery was convicted by a federal jury in Detroit on August 5, 2013.
At the trial, which began on July 16, 2013, the jury heard evidence that Montgomery submitted a series of false claims to British Petroleum, the Gulf Coast Claims Facility (funded by BP), and the National Pollution Fund Center, administered by the U.S. Coast Guard, seeking compensation for purported damages to a boat he claimed to have been operating in the Gulf of Mexico at the time of the Deepwater Horizon oil spill. The claims centered around his assertion that tar balls resulting from the oil spill destroyed his engines while he was engaged in pollution monitoring for the corporation he owned, Engineering Technological Researchers, Inc., and that the company lost hundreds of thousands of dollars in revenue as a result. Montgomery’s last claim to the National Pollution Fund Center sought more than $2.5 million for denying his previous claims of $861,512. Before Montgomery’s final claim, the Gulf Coast Claims Facility had issued an emergency interim payment to the him in the amount of $43,900.
In imposing sentence, the judge cited Montgomery’s long history of using the judicial system as a tool of harassment, his prior criminal history, his ownership and possession of various weapons, including body armor and silencers, even after a prior felony conviction, and his elaborate and nearly constant evasion of the truth, not only to the various funds from which he sought money, but also to the Court and jury throughout the prosecution of this case.
United States Attorney Barbara L. McQuade said, “This defendant’s scheme to defraud sought to exploit private and public funds designated for the victims of the worst ecological disaster in our nation’s history.”
McQuade commended the United States Secret Service Detroit Field Office and the Department of Homeland Security’s Office of Inspector General for the investigation leading to this successful prosecution.
The defendant has been incarcerated since the Court revoked his bond after the jury’s guilty verdict in August of 2013.
Former Labor Union President Sentenced to 30 Months in Federal Prison for Wire FraudRead the Press Release
PANAMA CITY, FLORIDA – Danny L. Hubbard, 49, of Panama City, was sentenced today to serve 30 months in federal prison for committing wire fraud by stealing approximately $91,600 from the American Federation of Government Employees (AFGE) Local 1380.
AFGE Local 1380 is a labor union that represents federal employees who work at the Naval Support Activity in Panama City, Florida. Hubbard became the acting president of AFGE Local 1380 in or around November 2006 and served as the president through 2008. While president, Hubbard wrote checks to himself or to cash, a local convenience store, and Boomtown Casino in Biloxi, Mississippi. Additionally, he conducted other numerous financial transactions and withdrew $6,650 from the union’s savings account. The funds disbursed as a result of Hubbard’s actions were not used for AFGE Local 1380’s official business or for the union. He did not obtain approval from AFGE Local 1380’s executive board or membership before disbursing the funds to himself, cash, or other third-party entities. He was ordered to pay restitution in the amount of $91,600 as a result of his scheme to defraud.Hubbard was also sentenced to serve a 3-year term of supervised release, and ordered to pay a $2,400 special monetary assessments.
This conviction results from an investigation by agents of the U.S. Department of Labor and was prosecuted by Assistant United States Attorney Kathryn Risinger.Former Jefferson Parish Sheriff’s Deputy Pleads Guilty to Civil Rights, Bank Fraud and Aggravated Identity Theft ViolationsRead the Press Release
Former Jefferson Parish Sheriff’s Deputy Mark Hebert, 48, pled guilty today to one civil rights violation, five bank fraud violations and one aggravated identity theft violation, announced Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division, U.S. Attorney Kenneth A. Polite Jr. for the Eastern District of Louisiana, Special Agent in Charge Michael J. Anderson of the FBI New Orleans Field Office and Sheriff Newell Normand from the Jefferson Parish Sheriff’s Office.
According to the plea agreement and other documents, Hebert engaged in a scheme to defraud J.P. Morgan Chase Bank (Chase Bank) from Aug. 2, 2007 through Nov. 21, 2007. The scheme began when Hebert, in his capacity as a Jefferson Parish Sheriff’s Deputy, responded to an automobile accident involving Albert Bloch and stole Bloch’s VISA debit card, as well as other items. While Bloch was hospitalized following the accident, Hebert used that debit card to make unauthorized purchases of merchandise, including two Global Positioning System units, and to withdraw funds from Bloch’s Chase Bank account via Automatic Teller Machines (ATMs). After Chase Bank cancelled the debit card due to Bloch filing a dispute with the bank, Hebert continued his scheme to defraud by negotiating and attempting to negotiate forged checks drawn from Bloch’s account. Hebert then obtained the replacement debit card sent to Bloch and used that card to make further unauthorized transactions at Chase Bank ATMs. Bloch has not been seen since 2007.
By pleading guilty, Hebert admitted that he violated Bloch’s civil rights when he responded in his official capacity to Bloch’s automobile accident and unreasonably seized and converted Bloch’s property, including funds that Bloch had on deposit with Chase Bank. Hebert also admitted that on at least five occasions he executed his bank fraud scheme against Chase Bank by unlawfully using Bloch’s original ATM card, replacement ATM card and Chase Bank checks. In addition, Hebert admitted that on at least one occasion he used Bloch’s driver’s license number and social security number in order to execute his bank fraud scheme and thereby committed aggravated identity theft.
“When the defendant officer responded to an automobile accident and stole the victim’s credit cards and used them to commit fraud, he violated not only the law, but the core law enforcement values of trust and respect for civil rights,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Civil Rights Division will continue to work with our partners in the U.S. Attorney Offices and FBI to ensure that civil rights violations are identified and where appropriate prosecuted.”
“Mark Hebert’s guilty plea occurred as a result of the successful collaboration of local and state law enforcement agencies in our continued fight to eradicate corruption in our community,” said U.S. Attorney Kenneth A. Polite for the Eastern District of Louisiana. “The U.S. Attorney’s Office and its law enforcement partners are delivering the same message in a unified voice: we will not tolerate abuse of power and official position. If you violate the public trust in Southeast Louisiana, you will be held accountable.”
“In as much as I am very disappointed in the behavior of former JPSO officer Mark Hebert as outlined in his guilty plea today, I am extremely proud of the persistence of my criminal investigators and the efforts of the U. S. Attorney's Office in this investigation,” stated Jefferson Parish Sheriff Newell Normand. “My office will not tolerate any form of corruption.”
A sentencing hearing has been scheduled before the Honorable Jane Triche-Milazzo on March 24, 2014. For each of the five counts of bank fraud, Hebert faces a maximum statutory sentence of 30 years in prison and a $1,000,000 fine. For the count of aggravated identity theft, Hebert faces a maximum statutory sentence of two years in prison and a $250,000 fine. For the count charging a civil rights violation, Hebert faces a maximum statutory penalty of one year in prison and a $100,000 fine.
The investigation of this matter was conducted by the Jefferson Parish Sheriff’s Office Detective’s Bureau and the FBI. The case is being prosecuted by Assistant U.S. Attorney Steve Parker, Assistant U.S. Attorney Tony Sanders and Civil Rights Division Trial Attorney Shan Patel.
Former Hedge Fund Manager Indicted for Defrauding Investors and Obstructing the SECRead the Press Release
GAINESVILLE , Ga.– Stanley J. Kowalewski has been arrested in South Carolina after being indicted by a federal grand jury in Atlanta for defrauding investors of hedge funds of up to $8 million, and for obstructing the U.S. Securities and Exchange Commission’s subsequent investigation of his activities.
“Kowalewski is charged with stealing from the investors who trusted him and then repeatedly lying to them and the SEC about his self-dealing,” said United States Attorney Sally Quillian Yates. “The victims of his greed include pension funds, schools, hospitals, and other non-profits who lost over $8 million in hard-earned money, which Kowalewski diverted to his own personal use.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “Investment fraud cases such as this remain a focus of the FBI’s criminal investigators in that these cases generate many victims and large loss amounts. The FBI will continue to work with its many law enforcement partners in an effort to hold accountable those individuals who would victimize unsuspecting investors by diverting their funds for personal gain.”
“Theft of employee benefit assets jeopardizes the benefits of workers. This case reaffirms the Labor Department’s commitment to protect workers’ benefits by identifying criminal activity wherever and whenever it occurs,” said Isabel Colon, Regional Director of EBSA’s Atlanta Regional Office.
According to United States Attorney Yates, the charges and other information presented in court: Kowalewski was the sole owner and Chief Executive Officer of SJK Investment Management, LLC, in Greensboro, N.C. Beginning in 2009, Kowalewski solicited investment money from pension funds, school endowments, hospitals, non-profit foundations, and other investors which he placed in two SJK “hedge fund of funds,” an onshore fund and an offshore fund called the Absolute Return Funds. Almost immediately after receiving the first investor money, Kowalewski began diverting the proceeds to pay for personal and business overhead expenses.
In December 2009, Kowalewski formed a new SJK fund called the Special Opportunities Fund, which he did not disclose to investors. He diverted millions from the Absolute Return Funds to the Special Opportunities Fund without disclosing the transfers to investors. After he secretly transferred the funds, Kowalewski diverted millions from the Special Opportunities Fund to himself through various self-dealing transactions, including having the Special Opportunities Fund buy three homes that Kowalewski owned and in which his family, his parents, and his brother-in-law’s family lived. Kowalewski also bought a multi-million-dollar beach house and directed that the Special Opportunities Fund pay him $4 million as a fee to which he was not entitled. Kowalewski created and altered documents in an effort to make these transactions appear legitimate.
Also as part of the scheme, Kowalewski overvalued the assets held by the Special Opportunities Fund and used those fraudulent valuations to calculate the returns for investors in the Absolute Return Funds. As a result, the monthly statements distributed to SJK investors showed fraudulently inflated returns. Investors lost over $8 million as a result of Kowalewski’s fraudulent scheme.
On March 30, 2010, the SEC initiated a proceeding to determine whether there had been violations of the federal securities laws in connection with SJK. As part of its investigation, the SEC subpoenaed Kowalewski to testify under oath. During his sworn testimony, Kowalewski testified that, after the Special Opportunities Fund had purchased his three homes, the Fund had leased the properties to him and his relatives, each for a yearly rental payment. He testified further that Michael J. Fulcher, the Chief Financial Officer of SJK, had drafted, and Kowalewski had signed, the leases at or near the time of the homes’ sales. According to the indictment, however, Kowalewski and his relatives had never leased the homes back from the Special Opportunities Fund. Prior to Kowalewski’s sworn testimony, Kowalewski and Fulcher conspired to obstruct the SEC proceeding by creating the leases and backdating them, in an effort to document the claimed lease relationships and to conceal the self-dealing transactions by Kowalewski. The leases were not created and signed at the time of the homes’ sales but in November 2010, a few weeks before Kowalewski testified. Kowalewski provided the fraudulent leases to the SEC as part of the investigation and then testified falsely about them to conceal his actions and obstruct the SEC’s investigation. The indictment also alleges Kowalewski lied in his sworn testimony when he testified that he had disclosed the Special Opportunities Fund to investors and that attorneys and other professionals had approved of his self-dealing transactions.
The indictment charges Kowalewski, 41, of Pawleys Island, S.C., with 22 counts of wire fraud, one count of conspiracy, and one count of obstructing the SEC proceeding. Each wire fraud count carries a maximum sentence of 20 years in prison. The conspiracy and obstruction charges each carry a maximum sentence of 5 years in prison. On April 19, 2013, Fulcher pleaded guilty to one count of conspiring with Kowalewski to obstruct the SEC proceeding, which charge carries a maximum sentence of five years in prison. Each of these charges carries a fine of up to $250,000. Fulcher’s sentencing date has not yet been scheduled. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that the indictment contains only allegations. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by Special Agents of the Federal Bureau of Investigation, Investigators with the Atlanta Regional Office of the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), and Special Agents of the Atlanta Regional Office of the U.S. Department of Labor’s Office of the Inspector General. The Atlanta Division Office of the U.S. Securities and Exchange Commission previously brought a civil action against Kowalewski. In that case, Kowalewski was ordered to pay over $16 million in disgorgement and civil penalties.
Assistant United States Attorneys Stephen H. McClain and Russell Phillips are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Department of Energy Lab Director Charged with Obstructing JusticeRead the Press Release
PITTSBURGH – An Upper St. Clair man has been indicted by a federal grand jury in Pittsburgh on a charge of obstruction of justice, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Nov. 19, named Anthony V. Cugini, 54, as the sole defendant.
According to the indictment, in connection with a Department of Energy investigation regarding misuse of his position as Director of the National Energy Technology Laboratory (NETL), Anthony V. Cugini attempted to conceal and destroy evidence by directing witnesses to delete and redesignate NETL computer files and records, to "protect him" during the investigation, and to provide false information in response to investigative inquiries.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The U.S. Department of Energy, Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Business Manager Embezzles at least $130,000 from Brookside Physician's OfficeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former business manager for a Brookside physician’s office pleaded guilty in federal court today to a fraud scheme in which she embezzled at least $130,000 from her employer.
Eileen Kisner, also known as “Anne,” 56, of Kansas City, pleaded guilty before U.S. District Judge Howard F. Sachs to mail fraud.
Kisner was the business manager at Brookside Family Medicine from 2002 to 2010. During that time, she used her employer’s credit cards for her personal use and benefit when she was not authorized to do so. The balances on the credit cards were paid by funds from the company’s bank account. Kisner pleaded guilty today to a mail fraud count that charges her with mailing a $224 check from the company’s account to pay for her personal car insurance on a family car, a Sierra. Kisner was not authorized to pay funds from Brookside’s bank account for the car insurance.
Kisner admitted today that she stole between $130,000 and $182,032 from Brookside Family Medicine by incurring unauthorized expenses during her employment, and those expenses were paid with funds from Brookside’s accounts. The court will determine the applicability of a specific loss amount within that range at Kisner’s sentencing hearing.
Under federal statutes, Kisner is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the FBI.
Florida Woman Sentenced to 14 Years in Federal Prison After Illinois Jury Finds Her Guilty of Telemarketing FraudRead the Press Release
Kathryn G. Garten, 52, of Orlando, Florida, was sentenced on November 19, 2013, in United States District Court, to 14 years in federal prison for her role in a nationwide telemarketing scheme which defrauded persons throughout the United States and Canada, including victims in seven counties in the Southern District of Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced. A jury in the Southern District of Illinois convicted Garten of conspiracy to commit mail and wire fraud in August 2013. She was remanded to federal custody immediately after the verdict was announced and appeared for her sentencing in a prison uniform.
“Ms. Garten came to her trial driving a new, expensive, luxury automobile. She left after her trial in chains. Yesterday she appeared in an orange prison uniform and left for her sentence in a Marshal’s van.” observed United States Attorney Wigginton. “The lesson is simple – do not try to defraud innocent victims in order to line your pockets. Scammers beware - my office, the Federal Trade Commission, and the United States Postal Inspection Service will not tolerate fraud on our citizens.”
Garten was a telemarketer who worked for National Solutions and related companies located in Orlando, Florida. The scheme operated under more than a dozen business names including Bluescape Timeshares International, Country Wide Timeshares, Countrywide Timeshares MA, Landmark Timeshares, Propertys Direct, Quicksale Propertys, Sun Property Networks, Sun Property’s, Universal Propertys, VIM Timeshares, Propertys DRK, Quick Sale Advisers, Quick Sale International, City Resorts, Resort Advisers, American Timeshares, Exit Week, and Resort Advisors International.
Telemarketers for National Solutions placed cold calls to timeshare owners and then falsely represented that their company had actual buyers for the owners’ timeshare property. The company solicited advanced fees of up to several thousand dollars from each victim in purported closing costs that were to be refunded to the owner at closing. Many timeshare owners were told that their closings would occur within a matter of days.
Despite collecting fees from these victims, the National Solutions companies were not successful in selling a single timeshare unit and indeed made little effort even to market the properties for sale. Instead, Garten and her co-conspirators simply pocketed the advanced fees.
Garten’s participation in the scheme began in April 2008 and continued through July 13, 2011, when the Federal Trade Commission raided the business pursuant to a court order. From 2007 to 2011, over 2,500 timeshare owners across the country were scammed by the National Solutions businesses to the tune of more than $6 million.
In pronouncing the sentence, the United States District Judge rejected the contention that Garten was merely a minor participant in a larger scheme: “This was a very serious crime,” he remarked, “and she was a big part of it. She’s richly deserving of punishment, and she’s going to get it.” he said. Were it not for her age, he offered, the sentenced would have been higher, noting that the 168-month sentence fell at the very bottom of the range recommended by the United States Sentencing Guidelines.
As part of her sentence, Garten was also ordered to pay $909,278.00 in restitution to the identifiable victims of the crime. When she completes her prison sentence, she will remain on supervised release for five years.
This prosecution, one of many in the Southern District of Illinois, follows an investigation by the Midwest Region Office of the Federal trade Commission and the St. Louis Field Office of the Chicago Division of the United States Postal Service. The case was prosecuted by Assistant United States Attorney Nathan Stump and Special Assistant United States Attorney Theresa Dawson.
Federal Jury in Del Rio Convicts San Antonio-Area Woman in Crystal Methamphetamine Smuggling OperationRead the Press Release
Maria Landin, age 46, of Helotes, TX, faces between 10 years and life in federal prison after a jury in Del Rio convicted her this afternoon for her role in a scheme to smuggle into the United States 878.2 grams of pure crystal methamphetamine, announced United States Attorney Robert Pitman.
Jurors convicted Landin of one count of conspiracy to import a controlled substance. Sentencing for Landin, who remains in federal custody, is scheduled for May 5, 2014.
Evidence and testimony presented during trial revealed that on November 11, 2012, Landin hired two individuals—Paul McKinney and Anthony Cole, both of Corpus Christi, TX--to go and pick up the crystal methamphetamine in Piedras Negras, Mexico, and return to her residence in Helotes, Texas, for distribution in the San Antonio area. On November 12, 2012, McKinney and Cole were apprehended at the Eagle Pass Port of Entry, Bridge #2, while in possession of the crystal methamphetamine.
Testimony further revealed that the co-conspirators met at Landin’s residence in Helotes, where McKinney and Cole were given a cellular phone, cash, and instructions on how to make contact in Mexico with the source of the methamphetamine. Landin also instructed the two couriers to conceal the drugs on their bodies using tape. After retrieving the methamphetamine, Cole and McKinney became lost in Mexico. Landin assisted Cole and McKinney by providing them with directions back to the Port of Entry. Inspection at the port revealed two bundles of methamphetamine taped to Cole’s legs. The methamphetamine had a street value of approximately $100,000.
Cole and McKinney, who remain in federal custody, have already pleaded guilty to the conspiracy charge and are awaiting sentencing in March 2014.
This investigation was conducted by Special Agents from Homeland Security Investigations (HSI), and U.S. Customs and Border Protection (CBP). The case was prosecuted by Assistant United States Attorneys Patrick Burke and Katherine Nielsen.
Federal Jury Convicts Brunswick, Georgia Woman in $4 Million Medicaid Fraud SchemeRead the Press Release
BRUNSWICK, GA SCHELLA LOGAN HOPE, 47, of Brunswick, Georgia, was convicted earlier this month by a federal jury of various health care fraud, aggravated identity theft, and money laundering offenses for her role in a $4 million scheme upon the Georgia Medicaid program. Chief United States District Court Judge Lisa Godbey Wood presided over HOPE’s 5-day jury trial.
According to evidence presented during the trial, HOPE was a licensed dietician who ran a business located in Brunswick, Georgia, known as Hope Nutritional Services. From 2005 through 2011, HOPE stole the identities of thousands of needy children between the ages of 0 and 5 that were enrolled in Head Start programs located throughout the state of Georgia. Once HOPE obtained the identities of these children, HOPE fabricated patient files, falsified prescriptions from doctors, and submitted $4 million worth of claims to Medicaid for nutritional services that were not provided. HOPE then used the money she stole from Medicaid to pay for luxury automobiles, designer clothing, and vacations, among other things.
Coconspirator Arlene Murrell pled guilty before HOPE’s trial to her role in the scheme. Murrell testified against HOPE at trial, and detailed how she helped HOPE commit the fraud.
HOPE was convicted of 58 counts of Conspiracy to Commit Health Care Fraud; Health Care Fraud; Aggravated Identity Theft; and Money Laundering. Upon her convictions for these offenses, Chief Judge Wood remanded HOPE to the custody of the United States Marshals pending sentencing in the case.
United States Attorney Edward J. Tarver stated, “Defendant Hope preyed upon American taxpayers stealing the identities of low-income Georgia families and then billing Medicaid for over $4 million in nutrition services that were never provided. This United States Attorney’s Office will continue its efforts to prosecute all who seek to defraud American taxpayers by scamming federal programs. Because of Ms. Hope’s criminal efforts to feed her extravagant lifestyle, she will have to rely upon the federal prison system for her own nutritional services.”“The Head Start Program provides many of our nation’s children with invaluable services and opportunities,” said Derrick L. Jackson, Special Agent in Charge of the US Department of Health and Human Services, Office of Inspector General, Atlanta Regional Office. “To use the Head Start Program as a vehicle to submit false and fraudulent claims to the Medicaid system is unacceptable and the OIG will continue to pursue these kinds of egregious cases.“
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “Those who defraud our publicly funded healthcare programs such as Medicaid and Medicare are taking valuable services and resources away from those in need. This guilty verdict reaffirms that the FBI will continue to provide significant investigative resources toward identifying, investigating and presenting for prosecution such individuals that, by engaging in such criminal conduct, put themselves before others."
Georgia Attorney General Sam Olens said, “Fraud of taxpayer monies will not be tolerated in any form. Head Start is a program intended to offer assistance to children from low income families. The fact that this Defendant used the Head Start Program and children in need to assist in her scam is especially appalling.”
“The Georgia Department of Community Health has made it a top priority to ferret out fraud, waste and abuse in our Medicaid program. Our collaborative work with state and federal agencies enables us to ensure Medicaid program dollars are being used to provide health care services to Georgia’s most vulnerable populations,” said Clyde L. Reese III, Esq., commissioner of the Georgia Department of Community Health.
At sentencing, HOPE faces 10 years in prison for each of the 17 health care fraud offenses; 20 years in prison for the various money laundering offenses; and 2 years consecutive prison sentences for each of the various aggravated identity theft offenses. HOPE also faces up to 3 years of supervised release, and may be ordered to pay restitution to the victims in this case.
The convictions of HOPE and Murrell resulted from a joint investigation by the United States Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; Georgia’s Department of Community Health; and the Georgia Attorney General’s Medicaid Fraud Control Unit.
Assistant United States Attorneys Brian T. Rafferty and David Stewart, along with Assistant Attorney General Robin Daitch, prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Federal Grand Jury in Fort Wayne Returns IndictmentsRead the Press Release
Hammond South Bend Fort Wayne
Fort Wayne, Indiana - The United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictments on November 20, 2013:
Marvin L. Bennett, 37, of Fort Wayne, Indiana, is charged in a single count Indictment with being a felon in possession of a firearm on or about October 21, 2013. The Indictment also seeks the forfeiture of a firearm and ammunition. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Lovita Morris King.
Eddie L. Carlisle, 25, of Fort Wayne, Indiana, is charged in a single count Indictment with being a felon in possession of a firearm on or about September 14, 2013. The Indictment also seeks the forfeiture of a firearm and ammunition. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
Preston R. Craig, 40, of Fort Wayne, Indiana, is charged in a four count Indictment with possessing with intent to distribute cocaine on or about October 25, 2013, profit from maintaining a drug involved premises from on or about October 23, 2013, to on or about October 25, 2013, possession of a firearm in furtherance of a drug trafficking crime on or about October 25, 2013, and being a felon in possession of a firearm on or about October 25, 2013. The Indictment also seeks the forfeiture of a firearm and ammunition. These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
Bryant Davis, 39, of Fort Wayne, Indiana, is charged in a single count Indictment with being a felon in possession of a firearm on or about October 21, 2013. The Indictment also seeks the forfeiture of firearms. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Tina L. Nommay.
Robert D. Pearl, Jr., 40, of Marathon, Florida, is charged in a two count Indictment with access device fraud and aggravated identity theft from on or about October 2011, and continuing until on or about March 2012. These charges were filed as a result of an investigation by the United States Postal Inspection Service and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Lovita Morris King.
Edward Williams, 31, of Fort Wayne, Indiana, is charged in a two count Indictment with being a felon in possession of a firearm on or about October 11, 2013 and possession with the intent to distribute cocaine base “crack” on or about October 11, 2013. The Indictment also seeks the forfeiture of firearms, ammunition and magazine. These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
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.
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.Federal and State Authorities Make Arrests in El Paso Crack Cocaine Distribution InvestigationRead the Press Release
Federal and state authorities have arrested seven individuals, all of whom are believed to be associated with the Folk Nation gang operating in El Paso, charged in connection with a crack cocaine distribution conspiracy announced United States Attorney Robert Pitman, Drug Enforcement Administration Special Agent In Charge Joseph A. Arabit, El Paso Police Chief Greg Allen and El Paso County District Attorney Jaime Esparza.
Those arrested yesterday and charged federally include: Terry Golden (aka “G”), age 44; Lachundria Aguirre (aka “Lala”), age 22; Terry Devorn Pearson (aka “P”), age 30; Ricardo Lucio (aka “Lucio”), age 46; Dominic Martin, age 36; Bryant Berryman, age 27; and, Juan Escalera, age 33. Authorities arrested four additional individuals yesterday based on state charges.
Golden, Aguirre, Pearson and Lucio were charged in a federal grand jury indictment, returned on November 13, 2013, and unsealed today, with one count of conspiracy to possess a controlled substance with intent to distribute. According to the indictment, Golden, Aguirre, Pearson and Lucio conspired with each other between October 2013 and September 2013, to possess with intent to distribute more than 28 grams of crack cocaine.
Martin, owner of the In The Cutt Barbershop and Salon in El Paso, and Berryman and Escalera are charged in separate criminal complaints filed yesterday. Martin and Berryman are charged with possession of a controlled substance with intent to distribute; Escalera, with re-entry after deportation. According to one criminal complaint, Martin himself, and also through an associate, sold a total of approximately 27 grams of crack cocaine to individuals acting in an undercover capacity earlier this year. Berryman is alleged to have been in possession of cocaine following a traffic stop on October 2, 2013. Escalera is alleged to have illegally re-entered the United States after being formally deported on January 9, 2007.
“This investigation, which was conducted jointly between DEA, the El Paso Police Department and other federal, state and local law enforcement agencies, targeted a gang-affiliated drug trafficking network responsible for the distribution of crack and powder cocaine in the El Paso area. The arrests of gang members and their associates further our efforts to stem the local drug trade and prevent gang-related violence and other crime,” stated DEA Assistant Special Agent In Charge Steve Whipple, El Paso Division. “DEA and our law enforcement partners will continue to work together to pursue those who threaten the safety of the communities in which we work and live,” he added.
All of the defendants who face federal charges remain in custody at this time. Upon conviction, each indicted defendant faces between five and 40 years in federal prison; Martin and Berryman each face up to 20 years in federal prison; and, Escalera faces up to two years in federal prison.
These charges resulted from a DEA El Paso Division Strike Force II investigation. The Strike Force is made up of investigators from the DEA, Homeland Security Investigations (HSI), U.S. Border Patrol, U.S. Marshals Service, El Paso Police Department and the El Paso County Sheriff’s Department. Agents from the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Postal Inspection Service, U.S. Customs and Border Protection and Child Protective Services assisted in making the arrests.
According to Lt. Tyler Grossman of the El Paso Police Department, “Forty-seven confirmed gang members have been arrested over the past year, utilizing 4,000 man hours, which was made possible through the Stonegarden Grant. The Stonegarden Grant calls for cooperation of agencies to fight border violence and these arrests are proof of the successful partnership demonstrated by EPPD, DEA, FBI, US Marshals, Border Patrol and others.”
In addition to the arrests, this operation has resulted in the seizure of 190 grams of crack cocaine, 30 grams of cocaine, two firearms and more than $24,000 in U.S. currency.
An indictment, or a criminal complaint, is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Father, Two Sons Sentenced to A Total of 85 Years in Prison for Involvement in Oxycodone and Money Laundering ConspiraciesRead the Press Release
“Doctor Shopping” Trips to Florida Involved Over $3M Worth of Drugs
KNOXVILLE, Tenn.-- Jackie Mize, 64, and his two sons, Kelvin Mize, 35, and James Mize, 40, all of Claiborne County, Tenn., were recently sentenced in the U.S. District Court for the Eastern District of Tennessee at Knoxville, by the Honorable Thomas A. Varlan, U.S. District Judge. Jackie and Kelvin Mize were each sentenced to serve 30 years in prison while James Mize received a sentence of 25 years. An order of forfeiture awarding the United States a money judgment of $3M was entered as to each defendant.
The sentences were imposed after all three individuals were convicted by a jury on June 14, 2013, of conspiracy to distribute oxycodone and conspiracy to commit money laundering. The evidence presented at trial showed that Jackie Mize, his two sons and others made regular “doctor shopping” trips to Florida over an 18-month period to acquire prescriptions for oxycodone and other controlled substances, had the prescriptions filled at pharmacies there, and used and sold the pills in and around Claiborne County. The evidence further demonstrated that the drug conspiracy involved over 75,000 oxycodone tablets and more than 25,000 doses of Xanax.
The indictment and subsequent convictions of the Mizes were the result of a lengthy investigation conducted by agents of the Eighth Judicial District Drug Task Force, Drug Enforcement Administration and Internal Revenue Service-Criminal Investigations.
U.S. Attorney Bill Killian said, “I want to thank the agents from all of these law enforcement agencies for their tireless efforts in bringing the Mizes to justice. These lengthy sentences should demonstrate that the U. S. Attorney’s Office will continue to work with its colleagues in the state judicial districts to severely punish those persons who are involved in spreading the epidemic of opiate addiction in the Eastern District of Tennessee.”
“These sentences send a clear message that drug and money laundering violations are serious crimes. IRS Criminal Investigation is proud to work with our law enforcement partners, by providing our financial investigative expertise, to stop the flow of illegal drugs into our communities,” stated Christopher A. Henry, Special Agent in Charge.
Essex County, N.J., Contractor and Three Employees Charged in Related Tax Fraud SchemesRead the Press Release
Company Worked Extensively on Palmer Square Project in Princeton, N.J.
NEWARK, N.J. – The owner of three Parsippany, N.J.-based construction companies surrendered to federal agents this morning on charges that he failed to collect and turnover federal and state payroll taxes totaling more than $1 million, evaded personal income taxes on more than $1.4 million in income, and falsified reports with respect to union benefit fund contributions, U.S. Attorney Paul J. Fishman announced.
Also, three employees of the construction companies were arrested on charges including filing false income tax returns, bankruptcy fraud, and a mail fraud scheme to defraud the state of New Jersey with respect to unemployment compensation benefits. All four defendants are scheduled to make their initial appearances later today before U.S. Magistrate Judge James B. Clark III in Newark federal court.
According to the three complaints filed in this case:
First Complaint:
Frank Chimento, Jr., 67, of West Caldwell, N.J., was the owner of Chimento Construction, Chimento Construction Services, and FAC Construction, three interrelated and commingled companies specializing in commercial masonry and concrete work (the “Chimento Companies”). From 2008 through 2011, the Chimento Companies’ primary construction job was the Palmer Square project located in Princeton, N.J.
Chimento Companies allegedly operated a cash payroll for a significant portion of the wages paid to employees during the period 2006 through 2011. Allegedly at Chimento Jr.’s direction, a conspirator (CC-1) who is not named in the complaints conducted structured cash transactions at several separate financial institutions to obtain cash to fund the payroll and in an attempt to avoid currency transaction reports from being filed. CC-1 would then purportedly prepare envelopes containing cash payroll based on the hours and wage rate information provided by Chimento Jr., who, as owner, was responsible for collecting, accounting for and paying over to the IRS withholdings from employees for Social Security, Medicare, and income taxes (collectively referred to as “payroll taxes”).
The complaint also alleges that as early as August 2009, the Chimento Companies have been parties to a collective bargaining agreement (CBA) with the International Union of Bricklayers and Allied Craftworkers, Administrative District Council of New Jersey, consisting of Local Unions 2, 4, and 5 (BAC/ADC), located in Bordentown, N.J. Among other things, the CBA provided that the Chimento Companies must make specified contributions to various BAC benefits funds for each hour of covered work performed by employees of the Chimento Companies. Chimento Jr. was required to complete remittance reports identifying the employees that had performed covered work under the CBA and the number of hours that they worked. According to the complaint, from August 14, 2009, through April 30, 2012, Chimento Jr. failed to make required contributions and caused false statements and representations to be made in remittance reports.
Joseph Carsillo, 45, of East Hanover, N.J., was the project superintendent for the Chimento Companies at Palmer Square. He has worked for the Chimento Companies since 2007. According to the Complaint, Carsillo conspired with Chimento Jr. to defraud the United States with respect to payroll taxes due and owing for the companies’ employees. Carsillo was responsible for keeping track of employees’ hours and would furnish that information to CC-1, which was used to determine the cash wages due to each employee.
According to the complaint, Carsillo received total cash wages from the Chimento Companies of approximately $167,466 during the years 2009 through 2011, which he failed to include on his personal tax returns for those years.Second Complaint:
Frank Chimento III, 45, of Verona, N.J., has worked for the Chimento Companies for more than 10 years and was one of the employees that received cash wages.
In 2007, Chimento III briefly operated his own excavation business. An analysis of his bank accounts showed payments in 2007 from the Chimento Companies totaling $85,860. Chimento III filed with the IRS a 2007 Individual Income Tax Return that was not correct as it did not include $45,860 he received from his employment with the Chimento Companies.
He also allegedly willfully did not file individual income tax returns from 2008 through 2011 although he received a Form 1099 for $100,000 in cash wages in 2008, and a total of $351,788 in cash wages during the years 2009 through 2011.
Third Complaint:
Carl J. Corso, 58, of Hamilton Township, N.J., started working for the Chimento Companies on August 12, 2009.
In addition to payroll checks, Corso requested and received cash wages from the Chimento Companies with regard to his employment in 2009 through 2011. Corso disclosed to his return preparer only the wages he received by payroll check and deliberately omitted the cash payments from his personal tax returns despite knowing that the cash should have been included on these returns.
Corso is also charged with a scheme to defraud the N.J. Department of Labor and Workforce Development (NJDOL-WD) with respect to unemployment compensation benefits. On Nov. 1, 2009, Corso advised the NJDOL-WD that he was no longer working and reactivated an earlier application for unemployment benefits and was awarded a weekly benefit of $526. He collected a total of $19,988 through the U.S. mail.
The three complaints charge the following offenses:
U.S. v. Frank Chimento Jr. and Joseph Carsillo
Defendant
Counts
Maximum Potential Penalty per Count
Count 1: Conspiracy to defraud the United States
Five years in prison; $250,000 fine or twice the gross gain or loss from the offense
Counts 2-15: Failure to collect and pay over payroll taxes
Five years in prison; $250,000 fine or twice the gross gain or loss from the offense
Counts 16-19: Mail fraud
20 years in prison; $250,000 fine or twice the gross gain or loss from the offense
Counts 20-29: False statements in ERISA documents
Five years in prison; $250,000 fine or twice the gross gain or loss from the offense
Counts 30-34: Individual Income Tax Evasion
Five years in prison; $250,000 fine or twice the gross gain or loss from the offense
Joseph Carsillo
Count 1: Conspiracy to defraud the United States
Five years in prison; $250,000 fine or twice the gross gain or loss from the offense
Counts 35-37: Filing False Individual Income Tax Returns
Three years in prison; $250,00 fine or twice the gross gain or loss from the offense
Count 38: Bankruptcy Fraud
Five years in prison; $250,000 fine or twice the gross gain or loss from the offense
U.S. v. Frank Chimento III
Counts
Maximum Potential Penalty per Count
Count 1: Filing False Individual Income Tax Return
Three years in prison; $250,000 fine or twice the gross gain or loss from the offense
Counts 2-5: Willful Failure to File an Individual Tax Return
One year in prison; $100,000 fine
U.S. v. Carl J. Corso
CountsMaximum Potential Penalty per Count
Count 1: Mail Fraud
20 years in prison; $250,000 fine or twice the gross gain or loss from the offense
Counts 2-9: Filing a False Individual Tax Return
Three years in prison; $250,000 fine or twice the gross gain or loss from the offense
U.S. Attorney Fishman praised special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia New York Regional Office, for the investigation leading to today’s charges. He also thanked the N.J. Department of Labor and Workforce Development, under the leadership of Commissioner Harold J. Wirths for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Leslie Faye Schwartz of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the complaints are merely accusations and the defendants are considered innocent unless and until proven guilty.
13-442Chimento, Frank Jr., and Carsillo, Joseph Complaint
Chimento, Frank III Complaint
Corso, Carl ComplaintEnfield Woman Admits Role in Scheme to Defraud Mass MutualRead the Press Release
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Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that THERESA SUTHERLAND, 33, of Enfield, pleaded guilty yesterday before Senior U.S. District Judge Alfred V. Covello in Hartford to conspiracy and identity theft offenses stemming from a scheme to defraud Mass Mutual.
According to court documents and statements made in court, SUTHERLAND was employed by Mass Mutual Financial Group as a claims examiner in the company’s Enfield office. Mass Mutual offers full-time employees up to $8,500 in college tuition reimbursement and up to $5,000 reimbursement for the expenses associated with the adoption of a child. In pleading guilty, SUTHERLAND admitted that she and other Mass Mutual employees defrauded the company by submitting numerous fraudulent claims for tuition reimbursement and adoption expenses. In association with the fraudulent claims for adoption expenses, SUTHERLAND and her co-conspirators submitted birth certificates and Social Security numbers of actual children who were not their own.
SUTHERLAND and her co-conspirators received approximately $240,000 in fraudulent reimbursements during the conspiracy, and SUTHERLAND specifically received more than $75,000.
SUTHERLAND pleaded guilty to one count of conspiracy to commit wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of aggravated identity theft, which carries a mandatory consecutive two-year term of imprisonment. Judge Covello has scheduled sentencing for February 11, 2014.
Four other former employees of Mass Mutual have been charged as a result of this ongoing investigation. Tamika A. Barnett, 31, of West Palm Beach, Fla., and Marena Bennett-Smith, 41, of Chicopee, Mass., have pleaded guilty and await sentencing.
As to the two defendants who are awaiting trial, Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Connecticut Financial Crimes Task Force, which includes members of the U.S. Secret Service, U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigation, Connecticut State Police, and the Greenwich, Hartford, Monroe, Stamford, Shelton, Stratford and Waterford Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Electric Company Owner Indicted in Navy Exchange Procurement Fraud SchemeRead the Press Release
Greenbelt, Maryland - A federal grand jury has indicted Noe Rodriguez, age 33, of Boyds, Maryland, on charges arising from a scheme in which he allegedly failed to comply with federal wage, hour and records regulations under the Davis-Bacon Act. The indictment also charges Rodriguez with identity fraud and aggravated identity theft and charges Rodriguez and Maria Murillo, age 36, also of Boyds, with misuse of a social security number. The indictment was returned on November 18, 2013, and unsealed today upon the arrests of the defendants and the execution of a search warrant.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Bill Jones, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, Washington Regional Office; Acting Special Agent in Charge Alfred C. McGeachy of the Naval Criminal Investigative Service, Washington Field Office; and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.
Rodriguez owned RDZ Electric, LLC, a company that provided electrical work on construction projects in the Washington, D.C. metropolitan area. Murillo acted as secretary of RDZ, and resided with Rodriguez. RDZ provided electrical work during the construction of the Navy Exchange (NEX) at the National Military Medical Center located in Bethesda, Maryland. The NEX was owned by the Department of the Navy.
RDZ was required to comply with federal wage, hour and records regulations under the Davis-Bacon Act. The Act required subcontractors such as RDZ to pay workers employed at the project site wages determined by the Department of Labor. The Department of Labor determined that the electrician’s prevailing wage rate at the NEX project was $50 an hour; and the electrical laborer’s wage rate was determined to be $16 an hour.
The indictment alleges that between August 2011 and June 2012, RDZ employed numerous electrical workers at the NEX project. Rodriguez allegedly listed no more than eight workers on RDZ=s certified payrolls, when in fact more than 30 workers were employed by RDZ and performed electrical work on the project. The indictment alleges that Rodriguez falsely certified on the payrolls that all RDZ employees were paid the Davis-Bacon prevailing wage, when in fact they were paid wages at least $1 million less than should have been paid pursuant to the Davis-Bacon prevailing wage rate.
The indictment alleges that Murillo used the social security number assigned to another person to open a bank account and Rodriguez allegedly provided a false social security number on his Maryland driver’s license renewal application, knowing that the social security number belonged to his minor son.
The indictment seeks forfeiture of at least $1 million, a vehicle, and all monies paid into four bank accounts controlled by Rodriguez between August 1, 2011 and June 1, 2012, for work performed by RDX on the NEX project.
Rodriguez faces a maximum sentence of five years in prison for each of five counts of making a false statement; a maximum of 15 years in prison for using another person’s identifying information to commit fraud; and a mandatory minimum of two years in prison consecutive to any other sentence for aggravated identity theft. Rodriguez and Murillo each face five years in prison for misuse of a social security number. The defendants had their initial appearances today in U.S. District Court in Greenbelt and were detained. A detention hearing is scheduled for Thursday, November 21, 2012 at 12:30 p.m.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorney’s Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice=s commitment to helping ensure the integrity of the government procurement process.United States Attorney Rod J. Rosenstein praised the U.S. Department of Labor - OIG, Naval Criminal Investigative Service and Social Security Administration - OIG for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Paul Nitze, who is prosecuting the case.
Easton Man Charged with FraudRead the Press Release
Randall McMahon, 27, of Easton, PA, was charged today by Information with one count of wire fraud and one count of bank fraud, announced United States Attorney Zane David Memeger.
If convicted, the defendant faces a maximum possible sentence of 50 years imprisonment, a five-year period of supervised release, a $1.25 million fine, a $200 special assessment, and the imposition of full restitution.
The case was investigated by the United States Secret Service, the United States Postal Inspection Service, Homeland Security Investigations, and the Lehigh County Auto Theft and Insurance Fraud Task Force. It is being prosecuted by Assistant United States Attorney Patrick J. Murray.
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1An 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, 215-861-8525Department of Justice Announces New Policy to Address Domestic Violence, Sexual Assault and Stalking in the WorkplaceRead the Press Release
Deputy Attorney General James M. Cole today announced the release of a new Department of Justice policy for employees addressing the effects of domestic violence, sexual assault, and stalking in the workplace. The Department of Justice has long been at the forefront of addressing domestic violence in the workplace.
“With approximately 114,000 employees in 53 components, the Justice Department is a diverse workplace and it is our hope that this policy will serve as a model for other employers to address domestic violence, dating violence, sexual assault, and stalking,” said Deputy Attorney General Cole. “This new policy, and the steps it requires components to take, will improve the safety of the department’s workplaces and will help us better support victims.”
On April 18, 2012, President Obama issued a memorandum entitled “Establishing Policies for Addressing Domestic Violence in the Federal Workforce,” which required the Office of Personnel Management to issue guidance on the development of agency-specific policies to address domestic violence in the workplace. All federal agencies are required to develop an agency-specific policy based on the guidance. The department welcomed the chance to build upon the existing policy first created by Attorney General Janet Reno in 1999, which established support and resources for department employees who experience domestic violence. This order unequivocally stated that domestic violence perpetrated in the workplace was unacceptable and would not be tolerated.
Today, the department adopted a robust workplace policy that fully responds to the president’s call to federal agencies, and addresses not only domestic violence in the workplace, but also sexual assault and stalking.
“The impact of domestic and sexual violence is far reaching,” said Acting Director Bea Hanson of the Office on Violence Against Women. “And it is clear that we all have a part to play in creating a work environment that is safe for all of us. As we introduce this new policy, we must educate ourselves on how we can support co-workers who may be experiencing domestic violence, sexual assault, or stalking. And I am proud that the Office on Violence Against Women has led the charge in supporting organizations that work to address domestic violence, sexual assault and stalking in the workplace.”
The Office on Violence Against Women (OVW), a component of the U.S. Department of Justice, provides leadership in developing the nation’s capacity to reduce violence against women through the implementation of the Violence Against Women Act (VAWA) and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing 22 federal grant programs, OVW often undertakes initiatives in response to special needs identified by communities facing acute challenges. More information is available at www.ovw.usdoj.gov.
If you, or someone you know, are a victim of domestic violence, please call the National Domestic Violence Hotline at 800-799-SAFE (7233), 800-787-3224 (TTY). For more information on resources that may be available to you, visit: http://www.ovw.usdoj.gov/statedomestic.htm.
Dearborn Man Sentenced for Clean Air Act ViolationsRead the Press Release
A Dearborn man was sentenced to 14 months in federal prison after having pleaded guilty to criminal violations of the Clean Air Act, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Randall Ashe, the Special Agent-in-Charge of the U.S. Environmental Protection Agency’s criminal investigation division in Chicago.
Khalil Mahmoud Saad, 40, was sentenced yesterday before United States District Judge Paul D. Borman in Detroit.
According to court records, in November 2011, Saad was hired as a demolition contractor to tear down a vacant commercial warehouse building located at 10401 Ford Road, Dearborn, Michigan, and dispose of the demolition debris. An asbestos consultant hired by the defendant inspected the building before the demolition began, and identified more than one-thousand linear feet of asbestos-containing pipe insulation, as well as asbestos-containing insulation on a large boiler. Federal law required that all of the asbestos materials had to be removed properly before any activity began that would break up, dislodge or similarly disturb the material. Rather than pay for the removal of the asbestos, Saad hired workers in April 2012 to tear down the warehouse building and failed to follow proper procedures such as failing to adequately wet regulated asbestos-containing material and ensure that it remained wet until collected or treated in preparation for disposal, both violations of the Clean Air Act’s asbestos regulations.
“The temptation is great to save money by cutting corners when tearing down buildings by failing to properly abate asbestos, but that conduct contaminates our clean air and exposes people to hazardous materials,” McQuade said. “We hope that prosecutions like this one will encourage people to comply with the law and keep our air clean.”
“Exposure to asbestos can lead to serious, even fatal diseases, and unsafe asbestos removal and demolition practices put the health of both the workers and the public at risk,” said Ashe. “For that reason, it is critical that those in charge of demolition operations strictly comply with the federal asbestos laws. The Defendant chose to ignore those legal requirements, potentially putting others at risk. Today’s sentence demonstrates that those who knowingly engage in such conduct will be prosecuted to the fullest extent of the law."
The case was prosecuted by the United States Attorney’s Office in the Eastern District of Michigan, by Assistant United States Attorneys Jennifer Gorland, Jennifer Blackwell and Special Assistant United States Attorney James Cha. The case was investigated by agents of the Environmental Protection Agency’s Criminal Investigation Division.
Congressman Trey Radel Pleads Guilty to Misdemeanor Drug Charge-Admits Purchasing Drugs from Undercover Officer-Read the Press Release
WASHINGTON – Congressman Trey Radel, 37, pled guilty today in the Superior Court of the District of Columbia to a misdemeanor charge of possession of cocaine, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Karl C. Colder, Special Agent in Charge of the Washington Division Office of the Drug Enforcement Administration (DEA).
Radel, who represents the 19th Congressional District of Florida, appeared before the Honorable Senior Judge Robert S. Tignor. As a first-time offender, Radel was able to ask the Court, under District of Columbia law, to defer entering a judgment of guilty and place him on probation. Judge Tignor placed Radel on one year of probation. If the probation is successfully completed, the Court could then dismiss the case without an adjudication of guilt.
According to a statement of offense submitted as part of the plea, Radel came to the attention of the FBI and DEA in the fall of 2013, during an investigation into cocaine trafficking in the Washington, D.C. metropolitan area. Agents learned that Radel would purchase cocaine for his personal use and sometimes share it with others.
The statement of offense says that, on Oct. 29, 2013, Radel met with an undercover police officer at a restaurant in the Dupont Circle area of Washington, D.C. At this time, Radel agreed to buy about 3.5 grams of cocaine from the undercover officer. He and the undercover officer went outside, and Radel handed over $260. The undercover officer provided Radel with a package of cocaine. Federal agents then approached Radel and the cocaine was recovered.
Radel agreed to speak with the agents about what had taken place and invited them to his apartment. There, he voluntarily admitted that he had purchased the cocaine. He also retrieved and provided to the agents a vial of cocaine that he had in his apartment.
“Today’s guilty plea emerges from a broader narcotics investigation that brought to light information that a sitting Member of Congress was routinely using and buying cocaine. Once this information was confirmed, law enforcement could not ignore this illegal conduct,” said U.S. Attorney Machen. “Mr. Radel’s guilty plea is similar to those entered every year by hundreds of other drug offenders in the District of Columbia who possess illegal narcotics. We appreciate his willingness to promptly accept responsibility for his conduct.”
“Today’s announcement demonstrates that illegal drugs continue to be present in our communities, and do not discriminate by age, gender, socio-economic group or profession,” said Assistant Director in Charge Parlave. “Along with our law enforcement partners at the DEA, the FBI remains focused on stopping the movement and sale of drugs on our neighborhood streets.”
“Drug traffickers and abusers respect no boundaries or limits and our neighborhoods and communities often pay the price,” said Special Agent in Charge Colder. “DEA and our law enforcement partners will continue to relentlessly pursue these drug trafficking networks and their criminal associates at every level. They pose a direct threat to the safety and security of our community here in the D.C. metro area. We want young people to see the price people pay for drug abuse and trafficking in cases like this so they will resolve to live drug-free lives.”
In announcing the plea, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Special Agent in Charge Colder commended the work of those who investigated the case. They also expressed appreciation for the work of the Fairfax County, Va., Police Department and the U.S. Attorney’s Office for the Eastern District of Virginia. Finally, they commended those who handled the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Nihar R. Mohanty and Jennifer Kerkhoff, who are prosecuting the matter.
13-400Colombian Drug Trafficker Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Hubert Rivas-Granados, 47, a former resident of Houston, Texas, and a citizen of Colombia illegally in the United States, was sentenced today in federal court for his participation in an interstate organization involved in the distribution of numerous kilograms of cocaine. Rivas-Granados was convicted by a jury of conspiracy to possess with intent to distribute cocaine in July of 2013. Judge Callie V. S. Granade imposed a sentence of 324 months imprisonment, after which she ordered that Rivas-Granados would be delivered to the appropriate immigration official for consideration of deportation. If for some reason Rivas-Granados is not deported, the judge ordered that he would serve a four-year term of supervised release, which will include drug abuse testing and treatment. The judge also ordered that Rivas-Granados pay the mandatory special assessment of $100.
Evidence adduced during the sentencing hearing established that Rivas-Granados occupied a leadership role in the conspiracy, which operated between Texas and Mobile from 2009 through 2011, to distribute more than 100 kilograms of cocaine here. The drug operation was disrupted with a series of arrests resulting from the investigation and federal indictments that have sent several members of the operation to federal prison for lengthy sentences.
The case was investigated by the Mobile County Sheriff’s Office and the Department of Homeland Security Investigations. It was prosecuted in the United States Attorney=s Office by Assistant United States Attorney Gloria Bedwell.
Cheswick Man Indicted on Federal Child Exploitation ChargesRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of distribution and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on Nov. 19, named Mark Philip Campbell, 49, as the sole defendant.
According to the indictment, from on or about Feb. 27, 2013, to on or about Sept. 15, 2013, Campbell received images and a video containing material depicting the sexual exploitation of minors. The indictment further alleges that from on or about Feb. 27, 2013, to on or about Oct. 24, 2013, Campbell knowingly possessed images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Carlsbad Man Sentenced to Ten Years in Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Eric Lee Crabb, 42, of Carlsbad, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to ten years in prison followed by five years of supervised release for his methamphetamine trafficking conviction. The sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Joseph M. Arabit of the DEA’s El Paso Division, and Commander Carroll Caudill of the Pecos Valley Drug Task Force.
Crabb was arrested on Jan. 14, 2013, on a federal criminal complaint alleging methamphetamine trafficking charges. He has been in federal custody since that time. According to the complaint, Crabb was arrested outside a Carlsbad motel on Dec. 27, 2012, for violating the conditions of his supervised release. Officers found that Crabb was in possession of methamphetamine when they searched him following his arrest. Officers found additional methamphetamine when they searched Crabb’s motel room and vehicle.
On April 11, 2013, Crabb entered a guilty plea to a felony information charging him possession of methamphetamine with intent to distribute. In entering his guilty plea, Crabb admitted giving officers permission to search his motel room and vehicle on Dec. 27, 2012. Crabb also admitted that the 136.16 grams of pure methamphetamine seized by the officers during those searches belonged to him and that he intended to distribute the drugs.
This case was investigated by the Las Cruces office of the DEA and the Pecos Valley Drug Task Force, and was prosecuted by Assistant U.S. Attorney Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Carl Junction Man Sentenced to 25 Years in Prison for Internet Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Carl Junction, Mo., man was sentenced in federal court today for receiving child pornography over the Internet.
James Lee Hagerman, 51, of Carl Junction, was sentenced by U.S. District Judge Greg Kays to 25 years in federal prison without parole. The court also sentenced Hagerman to 20 years of supervised release following his prison term.
On Feb. 7, 2013, Hagerman pleaded guilty to two counts of receiving child pornography.
An officer with the Southwest Missouri Cybercrimes Task Force was conducting an online investigation into the sharing of child pornography on April 24, 2012, when he identified Hagerman’s computer as sharing over 100 files of child pornography through a peer-to-peer file-sharing program. The officer downloaded three of the files and determined that they contained depictions of children as young as two to four years of age engaged in sexually explicit conduct.
Law enforcement officers executed a search warrant at Hagerman’s apartment and seized his computer. Hagerman told officers that he had approximately 1,000 child pornography videos stored on his computer.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI and the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Blayne Kyle Brady Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on November 20, 2013, before U.S. District Judge Donald W. Molloy, BLAYNE KYLE BRADY, a 22-year-old resident of Lame Deer and an enrolled member of the Northern Cheyenne Tribe, was sentenced to a term of:
- ison: 30 months
- ecial Assessment: $100
- stitution: $534
- pervised Release: 3 years
BRADY was sentenced in connection with his guilty plea to assault resulting in serious bodily injury.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On October 18, 2012, the victim was found by a motorist on the side of Highway 212 near mile marker 8 on the Crow Indian Reservation. He was seriously injured. Police and medical personnel arrived and transported him to the Crow/Northern Cheyenne Indian Health Service Emergency Room, and then transferred him to the Billings Clinic due to the severity of the injuries to his eyes.
Law enforcement conducted interviews and learned that the assault occurred after BRADY and the victim started arguing as they were sitting in the backseat of a car. BRADY and the victim then got out of the car and started fighting on the side of the road.
When interviewed, BRADY admitted that, although his memory of the assault is sketchy because he was intoxicated, he does remember that he hurt the victim badly. BRADY indicated that there was some tension between his family and the victim's family. Because of his level of intoxication, though, the victim has no memory of how he was injured.
The victim suffered serious injuries to both of his eyes. He lost some vision in one eye and is blind in the other. The injuries are consistent with BRADY gouging the eyes of the victim with his thumbs.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that BRADY will likely serve all of the time imposed by the court. In the federal system, BRADY does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Bureau of Indian Affairs.
Birch Tree Man Sentenced to 25 Years for Illegal Firearm, MethRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Birch Tree, Mo., man has been sentenced in federal court for illegally possessing a firearm and for possessing methamphetamine with the intent to distribute.
Raymond Doyle Smotherman, 48, of Birch Tree, was sentenced by U.S. District Judge Greg Kays on Tuesday, Nov. 19, 2013, to 25 years in federal prison without parole.
On July 3, 2013, Smotherman pleaded guilty to possessing a firearm in furtherance of a drug-trafficking crime and to possessing 50 grams or more of methamphetamine with the intent to distribute.
A Missouri State Highway Patrol trooper conducted a traffic stop of Smotherman’s vehicle on Dec. 30, 2011. The trooper noticed a rifle concealed in Smotherman’s vehicle on a shelf above the sun visors. The trooper searched Smotherman’s vehicle; in addition to the loaded Remington .270-caliber rifle on the shelf above the sun visor, he found a loaded Remington .22-caliber rifle, a loaded Ruger .22-caliber pistol, various rounds of ammunition and a bag that contained methamphetamine. In total, troopers discovered 17.04 grams of methamphetamine in the vehicle.
On March 12, 2012, law enforcement officers received information from a confidential source that Smotherman and another person were traveling to Kansas City to purchase methamphetamine. The next day, a state trooper spotted the vehicle Smotherman was driving on U.S. Highway 60 and conducted a traffic stop. Troopers located a WD-40 can under the front passenger seat. Inside the can were plastic baggies that contained methamphetamine. Another bag of methamphetamine was found in the battery compartment of a Dewalt cordless drill and caulking tube. In total, troopers discovered 110.03 grams of methamphetamine in the vehicle.
This case was prosecuted by Special Assistant U.S. Attorney Ami Harshad Patel Miller and Assistant U.S. Attorney Cynthia J. Hyde. It was investigated by the Missouri State Highway Patrol, the South Central Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Bank Robber Sentenced to 18 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Gregory Steven Horn, age 38, of Glen Burnie, Maryland, today to 18 years in prison, followed by five years of supervised release, for conspiracy to commit armed bank robbery and armed bank robbery. Judge Bredar also ordered Horn to pay restitution of $802.50 for counseling for bank employees. Horn was on supervised release at the time of the offense for a 2001 federal bank robbery conviction in Tennessee.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Chief Jeffrey Spaulding of the Westminster Police Department.
According to Horn’s plea agreement, in October 2011, Horn’s half-sister, Kelly Nicole Smith, told Horn that she was having financial problems. Horn suggested that they rob banks together in order to make money and Smith eventually agreed. On November 2 and December 1, 2011, Horn and Smith attempted to rob banks in Parkville and Reisterstown, Maryland, respectively. In each attempt, Horn provided Smith with a wig and hat to disguise herself and Smith entered the bank and demanded money from the bank teller, but in each instance left the bank without obtaining any money.On December 2, 2011, Horn and Smith conspired to rob a third bank, the Farmers and Merchants Bank on Clifton Boulevard in Westminster, Maryland. Horn drove Smith to the bank and directed her to go inside, conduct surveillance to determine the presence of security and whether there was bullet proof glass on the teller station, then return to the car with a report. Smith did as Horn directed and shortly thereafter, Horn entered the bank wearing a black hoodie with the hood pulled up over his head and a black mask covering his face. Horn demanded money, displaying what appeared to be a small black handgun and placed a black bag on the counter. The teller put the money in the bag and Horn left, stealing $1,800. Horn and Smith fled in Horn’s vehicle, driven by Horn. Law enforcement attempted to stop the vehicle, but Horn refused to stop. Law enforcement pursued Horn’s vehicle from Carroll County into Frederick County, where Horn threw something – believed to be his weapon – from the car window. Eventually, the vehicle was stopped and Horn and Smith were arrested. The vehicle was searched and law enforcement recovered $1,800 stolen from the bank, the hat and wig worn by Smith, and clothing consistent with the clothing worn by Horn and Smith during the robbery of the Farmers and Merchants bank. No firearm was recovered.
Kelly Nicole Smith, age 23, of Middle River, Maryland, pleaded guilty to her role in the conspiracy and was sentenced to two years in prison.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department and the Westminster Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Rachel M. Yasser, who prosecuted the case.
Baldwin Man Pleads Guilty to Child Pornography OffensesRead the Press Release
A Baldwin man pled guilty on November 20, 2013, to a three-count Indictment charging him, in Count 1, with Receipt of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, in Count 2, with Access with Intent to View Visual Depictions of Minors Engaged in Sexually Explicit Conduct, and, in Count 3, Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Michael A. Nieweglowski, Jr., a/k/a “Tony,” 47, of Baldwin, Illinois, is subject to enhanced penalties due to a 2000 conviction for Predatory Criminal Sexual Assault in Randolph County. On Count 1 of the Indictment, Nieweglowski faces a term of imprisonment of not less than fifteen (15) but not more than forty (40) years, a fine up to $250,000, and a term of supervised release of five (5) years to life. On Counts 2 and 3 of the Indictment, Nieweglowski faces a term of imprisonment of not less than ten (10) but not more than twenty (20) years, a fine up to $250,000, and a term of supervised release of five (5) years to life. Nieweglowski will also have to register as a sex offender when he is released from prison. Sentencing is scheduled for March 21, 2014, in East St. Louis, Illinois.
The investigation began on January 14, 2011, when the defendant, who had been on mandatory supervised release for the Predatory Criminal Sexual Assault conviction since at least September 10, 2010, was turned over to his parole officer after suspected child pornography was found on a printer in Nieweglowski’s parents’ home on December 30, 2011. On January 15, 2011, a Special Federal Officer with the Federal Bureau of Investigation’s Springfield Child Exploitation Task Force seized numerous media devices from Nieweglowski’s camper trailer which was parked next to his parents’ home, including a laptop computer that Nieweglowski could access in his parents’ home and a PNY thumb drive.
A forensic review of the laptop revealed approximately 79 visual depictions of minors engaged in sexually explicit conduct that had been downloaded via the internet. The PNY thumb drive was found to contain approximately 80 visual depictions of minors engaged in sexually explicit conduct that had been transferred to the thumb drive from the laptop computer. Several of the visual depictions contained images of prepubescent minors engaged in sexually explicit conduct as well as images of minors that depicted sadistic behavior.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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.”
The case was investigated by the Illinois Department of Corrections and the Federal Bureau of Investigation=s Springfield Child Exploitation Task Force (SCETF). The case is assigned to Assistant United States Attorney Angela Scott.
Arizona Man Pleads Guilty to Conspiracy to Launder Money in Scheme to Defraud NissanRead the Press Release
Adrian Franklin, 40, of Chandler, Arizona, pleaded guilty on November 18, 2013, to participating in a scheme to defraud Nissan North America, announced David Rivera, United States Attorney for the Middle District of Tennessee. Franklin pleaded guilty to one count of conspiracy to commit money laundering, which carries a maximum penalty of 20 years in prison and a fine of $500,000.
According to the plea agreement, Franklin admitted to participating in a conspiracy to launder money derived from a scheme to defraud Nissan by recruiting others to obtain the names of Nissan owners and the corresponding Vehicle Identification Numbers (“VINs”), to submit false claims for repair to Nissan. When Nissan issued a check to the vehicle owner for the bogus repair claim, the owner would deposit the check into his or her bank account and then pay a portion of the funds to Franklin and a portion to others involved in the scheme.
Franklin was charged in an indictment that also named five other defendants: Kenneth Carter, 44, of Corona, CA; Francisco DeLaRosa, 40, of West Covina, CA; Bruce Young, 49, of Compton, CA; Tracey Young, 45, of Los Angeles, CA; and Wendell Young, 34, of Inglewood, CA. The indictment charged conspiracy, mail fraud, and conspiracy to commit money laundering, and alleged that Nissan lost approximately $571,500 as a result of the scheme.
An indictment is merely an accusation and is not evidence of guilt. All remaining defendants are presumed innocent unless and until proven guilty in a court of law. The trial of the remaining defendants is set for February 25, 2013, in U.S. District Court, before Chief Judge William Haynes.
The case was investigated by the IRSB Criminal Investigation and the Tennessee Bureau of Investigation. Assistant United States Attorney Kathryn B. Ward represents the government.
Alabama Man Sentenced to 188 Months in Federal Prison for Attempted Online Enticement and Traveling to Engage in Sexual Activity with a MinorRead the Press Release
PANAMA CITY, FLORIDA – Jeffrey Monroe Roy, 48, of Mobile, Alabama, was sentenced today to serve 188 months in federal prison for using the Internet in an attempt to persuade, induce, and entice a minor to engage in sexual activity and traveling across state lines with the intent to engage in sexual activity with a minor.
Evidence presented during trial proved that on June 13, 2012, law enforcement officers, acting in an undercover capacity, posted an advertisement on Craigslist posing as a 13-year-old female. Roy responded to the posting, and over the next three days, he engaged in email chats and telephone calls that were sexual in nature with a person he believed to be a 13-year-old female named Jaz. During his communications with Jaz, Roy discussed numerous sexual situations and attempted to entice the 13-year-old female to engage in sexual activity with him. After making arrangements to meet Jaz, Roy drove from Mobile, Alabama, on June 16, 2012, to meet with her at a predetermined location, where he was arrested and found to be in possession of Viagra, condoms, a camera, a knife, handcuffs, a first aid kit, and a deck of 52 sex-position cards.
Roy was also sentenced to a lifetime term of supervised release, and ordered to pay a $200 special monetary assessment.
In announcing the sentence imposed by the court, Pamela C. Marsh, United States Attorney for the Northern District of Florida, credited the success of this prosecution to the joint efforts of the agencies participating in the North Florida Internet Crimes Against Children Task Force Program, particularly U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Marshals Service, Bay County Sheriff’s Office, and the Gainesville Police Department.
The case was prosecuted by Assistant United States Attorney Kathryn Risinger.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to 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.Aiport Operator Charged with Flying an Airplane Without A Proper Lincense and Lying to the Federal Aviation Administration About His QualificationsRead the Press Release
CHARLOTTE, N.C. – Paul Douglas Tharp, 53, of Greensboro, N.C., was arrested today on a federal criminal indictment charging him with lying to the Federal Aviation Administration (FAA) about his qualifications as mechanic and a pilot and for flying an airplane without the proper pilot’s license, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. The five-count criminal indictment was unsealed today following the arrest of Tharp by law enforcement in Winston-Salem, N.C.
Kathryn A. Jones, U.S. Department of Transportation, Office of Inspector General (DOT-OIG) regional Special Agent-In-Charge, joins U.S. Attorney Tompkins in making today’s announcement.
According to allegations contained in the criminal indictment:
From in or around 2011, Tharp was hired by Warriors and Warbirds, a group based in Monroe, N.C., to repair and refinish a multi-engine Curtiss Wright C-46F (C-46F) airplane that the group had purchased from an aviation museum in Midland, Texas. The Warriors and Warbirds group planned to feature the C-46F airplane at the museum located at the Charlotte-Monroe Executive Airport. Tharp currently operates an airport in Davidson County, N.C., and at the time he was certified to fly only single-engine aircrafts. Tharp did not have a multi-engine pilot license and did not hold an FAA Mechanic Certificate with an Airframe and Powerplant (A&P) rating. The Warriors and Warbirds hired Tharp to repair and fly their aircraft, after Tharp told a group representative that he was an A&P mechanic and could get the C-46F in good condition, and that he was licensed to operate a multi-engine plane like the C-46F.
As part of his services to the group, Tharp regularly traveled to Midland, Texas, where he performed maintenance on the C-46F, knowing he was not certified to do so. In addition to providing mechanic services, on several occasions Tharp acted as second in command during flights, even though he lacked the proper authorization to fly this type of airplane. On or about June 4, 2011, Tharp, acting again as second in command pilot, and other persons traveled via the C-46F from Monroe to an air show in Reading, Penn. Because the airplane still needed additional mechanical work to improve its airworthiness, the FAA required a special ferry permit before the plane could be flown back to Monroe. On or about June 5, 2011, an FAA inspector asked Tharp if someone had inspected the airplane’s condition to determine if the C-46F was safe for the return flight from Pennsylvania to North Carolina, and Tharp falsely represented he was an A&P mechanic who could make that determination. When the FAA inspector asked Tharp about his A&P certificate, Tharp lied and told the inspector that he had forgotten his A&P certificate in a rush to prepare the C-46F for the flight to Pennsylvania. Tharp then gave the FAA inspector the A&P certificate number of another A&P certificate holder who Tharp knew. This person did not give permission to Tharp to use his certificate number, and he became upset when he learned about Tharp’s unauthorized use of his number.
Based upon Tharp’s false representation about his status as an A&P mechanic and his unauthorized use of another person’s certificate number, the FAA inspector issued a special ferry permit that allowed the C-46F and its passengers to fly from Pennsylvania back to Monroe. Tharp again acted as second in command of the multi-engine C-46F even though he should not have been flying this airplane.
After Tharp completed the return trip to North Carolina, the FAA inspector who issued the special ferry permit checked on the certificate number Tharp had provided and learned that Tharp had lied about having an A&P certificate. The FAA opened an investigation and when Tharp received a letter from the FAA inquiring whether he was an A&P mechanic and whether he had a pilot’s certificate that allowed him to fly a multi-engine airplane like the C-46F, Tharp sent a reply letter to the FAA falsely stating, “I have been putting a time line of when I received my multi engine rating,” despite knowing he had never had this rating.
“Tharp knowingly and repeatedly lied about his qualifications to his clients and the FAA and in the process put lives at risk. Tharp’s lack of proper certification as a pilot and a mechanic is a serious safety hazard and now Tharp must face the legal consequences of these dangerous lies,” said U.S. Attorney Tompkins.
“The arrest today is a clear signal that safety of the Nation’s air transportation system remains a high priority for both OIG and DOT,” said Kathryn A. Jones, DOT-OIG regional Special Agent-In-Charge. “Working with the FAA, and our law enforcement and prosecutorial colleagues, we will continue our vigorous efforts to prevent and detect unlawful use of, and false statements related to, pilot and mechanic certificates; and punish to the fullest extent of the law those who would seek to compromise the integrity of DOT’s safety programs.”
Tharp had his initial appearance today in U.S. District Court in Winston-Salem. At sentencing he faces a maximum of five years in prison and a $250,000 fine for each of the two criminal counts of making false statements to the FAA, and a maximum of three years in prison and a $250,000 fine for each of the three counts of flying without proper authorization.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until he is proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Tompkins credited the special agents of the U.S. Department of Transportation, Office of Inspector General for the investigation leading to Tharp’s indictment.
Assistant United States Attorney Kenneth M. Smith of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
26 People Charged in Drug Conspiracy, Accused of Distributing Heroin, Cocaine and Marijuana-Drugs Trafficked from Texas to Washington, D.C. Area-Read the Press Release
WASHINGTON – Seventeen people were arrested today following their indictments on federal charges in connection with an ongoing investigation by the FBI/Metropolitan Police Department Safe Streets Task Force into a network that trafficked heroin, cocaine, and marijuana from Texas to the Washington, D.C. area. The drugs were then distributed in the Washington, D.C. area.
In addition to the arrests today, in the Washington, D.C. area, two defendants already were in custody. Seven others were apprehended in McAllen, Texas on Nov. 18, 2013.
The arrests and charges were announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
The defendants are among those named in two indictments returned on Nov. 7, 2013, in the U.S. District Court for the District of Columbia. The indictments, partially unsealed, charge the defendants with conspiracy to distribute and possess with intent to distribute heroin, cocaine, and marijuana. Some of the defendants also are charged with conspiracy to launder monetary instruments. Both indictments also include a forfeiture allegation seeking all proceeds derived from the crimes, as well as assets used to commit the offenses. If convicted, the defendants face a minimum of 10 years in prison and a maximum of life in prison.
The FBI’s Washington Field Office and MPD were joined in the law enforcement action this week by the FBI San Antonio Field Office’s McAllen Resident Agency; the U.S. Park Police; the U.S. Marshals Service; the U.S. Bureau of Prisons; the Prince George’s County, Md. Police Department; the Hidalgo County, Texas Sheriff’s Office, and the San Juan, Texas Police Department.
A total of 17 locations and four vehicles locations were searched today in the District of Columbia and Maryland. Authorities seized 18 guns, heroin, PCP and cash.The indictments allege that the defendants conspired to carry out the drug operation from October 2012 through October of this year, when it was broken up by law enforcement. The network allegedly operated in the District of Columbia, Maryland, and Texas.
“These indictments were designed to dismantle a drug ring that trafficked heroin and cocaine from Texas into the District of Columbia,” said U.S. Attorney Machen. “We all owe a debt of gratitude to the more than 200 agents and officers whose courage today resulted in 17 arrests and the seizure of more than a dozen firearms and heroin and PCP. The District of Columbia is a safer place today with these guns and drugs off the street.”
“The arrests that were carried out this week in the Washington, D.C., region and in Texas once again show that we will not tolerate drug dealers who attempt to root their network within our communities and afflict our neighborhoods with their illegal trade,” said Assistant Director in Charge Parlave. “Along with our partners on the Safe Streets Task Force, the FBI is focused on pursuing those who pose a threat to our communities through the sale of illegal drugs.”
“These are significant arrests, and the volume of drugs and weapons seized highlight the potentially devastating impact this criminal enterprise had on the D.C. metropolitan area and various communities across the country,” said Chief Lanier. “The Metropolitan Police Department along with our local and federal law enforcement partners continue to work together to make our communities safer by locating and disrupting criminal organizations intent on wreaking havoc on our neighborhoods for their own personal gain. We are sending a message to criminals nationwide that we will find you and arrest you.”
A total of 12 men and five women were arrested in the area today.
Those arrested in the Washington, D.C. area include several members of one family: Juan Floyd, 45, of Temple Hills, Md., an alleged leader of the enterprise; his brother, John Floyd, 51, of Washington, D.C., and his daughter, Juanita N. Culbreth, 27, of Oxon Hill, Md.
Others arrested today include: Lisa Adona, 50, of Fort Washington, Md.; Rodney Kirk Carter, 50, of Washington, D.C.; Derek L. Gadsden, 54, of Washington, D.C.; Donald Johnson, 51, of Washington, D.C.; Mike Johnson, 30, of Deale, Md.; Albert P. Jones, 44, of Temple Hills, Md.; Vincent J. Jones, 45, of Washington, D.C.; Roxanne Matthews-Baker, 47, of Washington, D.C.; Maurice P. Mercer, 38, of Washington, D.C.; Lawrence E. Proctor, 54, of Washington, D.C.; Darnell S. Rogers, 50, of Fort Washington, Md.; Bruce Settles, 48, of Washington, D.C.; Delshawn A. Wrice, 53, of Washington, D.C., and Jeri Wright, 60, of Suitland, Md.
Jeffrey Coachman, 39, and Gary Price, 47, already were in custody.
An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
This prosecution grew out of a long-term FBI/MPD alliance called the Safe Streets Task Force that targets violent drug trafficking gangs in the District of Columbia. The Safe Streets Initiative is funded in part by the Baltimore Washington High Intensity Drug Trafficking Area as well as the Organized Crime Drug Enforcement Task Force. The initiative involves more than 150 Safe Streets Task Forces across the country that combat street gangs by combining federal, state and local police resources. The task forces, which began in 1992 in Los Angeles and the District of Columbia, address gang activity, including drug-related crimes.
This investigation also was sponsored and supported by the Department of Justice’s Organized Crime Drug Enforcement Task Force.
U.S. Attorney Machen, Assistant Director in Charge Parlave and Chief Lanier thanked those who pursued the investigation from the FBI/MPD Safe Streets Task Force and other agencies. They also expressed appreciation to the Prince George’s County Police Department, the U.S. Park Police, the U.S. Marshals Service, and the Maryland State Police, as well as the U.S. Attorney’s Office for the District of Maryland and the McAllen Division of the U.S. Attorney’s Office for the Southern District of Texas, for their assistance in the investigation.
Finally, they acknowledged the efforts of those who worked on the investigation from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Catherine O’Neal, Jeannette Litz, Reagan Gibson, Rommel Pachoca, Teesha Tobias, Kim Hall, Niya Attucks, and Mary Downing, and Legal Assistants Priscilla Hutson and Jessica Moffatt.
They also commended the work of Assistant U.S. Attorneys Karla-Dee Clark and Thomas A. Gillice, who are prosecuting the case; Assistant U.S. Attorneys Zia Faruqui of the Asset Forfeiture and Money Laundering Section, which is assisting with the forfeiture action, and Assistant U.S. Attorneys Debra Long-Doyle and Suzanne Clement Libby who assisted with the investigation and prosecution.
13-40117 Ventura County Gang Members Linked to Mexican Mafia Charged for Roles in Mexican-Based Drug Trafficking Organization Operation “SuperNova” Targeted Gang-Related Drug TraffickingRead the Press Release
LOS ANGELES – In the third phase of Operation “SuperNova,” a multi-agency task force investigation that targeted Mexican Mafia-affiliated street gangs in Ventura County, 17 people have been charged following an investigation by a task force comprised of the FBI, the Ventura Police Department and the Oxnard Police Department. Following arrests this morning, 14 of 17 defendants named in a federal criminal complaint unsealed this morning are now in custody.
Several teams of police officers and federal agents executed arrest and search warrants early this morning and took six defendants into custody without incident. Eight of the 17 defendants charged were already in custody based on unrelated charges and soon will be brought into federal custody. The remaining three defendants charged in the complaint are fugitives, some believed to be residing in Mexico, where they allegedly direct the narcotics-trafficking activity alleged in the complaint.
The criminal complaint details a year-long undercover investigation and outlines a series of narcotics transactions that led to the seizure of more than two pounds of methamphetamine and quantities of heroin that were being sold on the streets of Ventura County. The complaint alleges that the drugs were supplied by a Mexican drug trafficking organization controlled by Mexican Mafia member Martin Madrigal-Cazares. Local street gangs allegedly communicated with the head of the organization in Mexico, while controlling narcotics sales and collecting “taxes” on behalf of the Mexican Mafia in Ventura County.
This case targeted the "shotcallers" of Ventura County and Oxnard street gangs -- including Lemonwood, Surtown and Ventura Avenue Gangsters -- whose members control the drug trade in their respective territories. The defendants charged in the complaint (with the exception of Cazares) are residents of Ventura, Oxnard, Camarillo and Moorpark. Those named are:
David Acosta, 33, in custody;Daniel Armendariz, 38, arrested today;
Pedro Arrieta, 42, arrested today
Robert De La Cerda, 35, in custody
Lina Fuentes, 35, fugitive;
Daniel Gonzales, 40, in custody;
Philip Guerra, 28, arrested today;
Ruben Hernandez, 20, in custody;
Alejandro Herrera, 38, in custody;
David Leal, David, 44, arrested today;
Martin Madrigal-Cazares, 38, a fugitive believed to be residing in Mexico;
Dillon Mansell, 21, in custody;
Armando Molina, 30, arrested today;
Edwin Mora, 29, in custody;
Librado Navarrete, 27, a fugitive;
Frank Ruiz, 32, arrested today; and
Javier Tamayo, 35, in custody
As a result of the first phase of Operation Supernova in 2011(see: http://www.justice.gov/usao/cac/pressroom/pr2011/018.html), 11 defendants were convicted and received sentences of up to 25 years in prison. In the second phase of Operation Supernova in 2012 (see: http://www.fbi.gov/losangeles/press-releases/2011/oxnard-gang-members-arrested-on-federal-drug-and-gun-trafficking-charges-in-second-part-of-operation-supernova), six defendants were charged in connection with conspiracy to distribute methamphetamine and illegally sell firearms. The total seizure for the three-phase operation totals 18 pounds of methaphetamine, five kilograms of cocaine, six pounds of heroin and 46 firearms.
The defendants named in the complaint are charged conspiring to distribute methamphetamine and, if they are convicted, each would face a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of life in prison.
The defendants arrested today will make their initial appearances this afternoon in United States District Court in Los Angeles. The federal defendants will be prosecuted by the United States Attorney’s Office.
The investigation was conducted jointly by the Ventura Police Department; the Oxnard Police Department; and the FBI.
The Ventura Gang Task Force is one of many FBI Safe Streets Task Forces throughout the United States, funded for the purpose of assisting local police in identifying and addressing violent crime in America.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in a court of law.
Release No. 13-133
10 Indicted in Central New York Isynthetic Marijuana ConspiracyRead the Press Release
Syracuse, NY- United States Attorney Richard S. Hartunian announced the indictment of ten (10) individuals in connection with a large synthetic marijuana distribution organization in Central New York. Those arrested in the synthetic marijuana distribution conspiracy this morning include the following:
ABDALQADER MANSOUR, age 44, Syracuse, New York;
RASHEED MANSOUR, age 23, Camillus, New York;
JOE AREF, age 28, Nederland, Texas;
ARAFAT KHOUDOUR, age 29, Beaumont, Texas;
ALI BEDWAN, age 25, Port Arthur, Texas;
ABED ZAHRAN, age 55, North Syracuse, New York;
AMJAD MANSOUR, age 25, Syracuse, New York; and
ZIAD MANSOUR, age 33, Camillus, New York.All of these individuals have been indicted by a federal grand jury with conspiring to possess with the intent to distribute and distributing synthetic marijuana. If convicted, the defendants face up to a twenty (20) years imprisonment, up to a $1 million fine, and at least three (3) years of supervised release following any period of incarceration.1 Arraignments are scheduled in U.S. District Court in Syracuse for 1:30 p.m. today before Magistrate Judge David E. Peebles.
These prosecutions resulted from an investigation undertaken in the fall of 2012 by the Syracuse Resident Office of the Drug Enforcement Administration (DEA), the Onondaga County Sheriff’s Office (OCSO), the Syracuse Police Department (SPD), the New York State Police (NYSP), the United States Marshals Service, and the U.S. Attorney’s Office.
The investigation, which included wiretaps on one of the defendant’s telephones, revealed that this synthetic marijuana trafficking organization was responsible for the manufacture and distribution of approximately 100 to 200 pounds of synthetic marijuana per month. The synthetic marijuana was manufactured in clandestine locations in and around Syracuse by members of the conspiracy. The defendants utilized chemicals such as UR-144 (a Schedule I controlled substance), which they imported from China and elsewhere; they sprayed the chemicals on leafy plant material, added flavoring, and then placed the synthetic marijuana product in packages labeled “Scooby Snax,” “WTF,” “Blue Caution,” and other names. The packages were then distributed to local convenience stores, as well as shipped to co-conspirators in Texas, Ohio, and South Carolina for distribution to customers.
Search warrants were executed in Texas and at the following locations this morning:
202 Van Rensselaer Street, Apartment #1, Syracuse, NY,
1500 Elm Circle, Apartment #7, Camillus, NY,
430 Spencer Street, Storage Unit D-151, Syracuse, NY,
104 Lorian Drive, Syracuse, NY,
344 North Salina Street, Syracuse, NY,
1805 S. Geddes Street, Syracuse, NY,
300 Otisco Street, Syracuse, NY,
1504 South Avenue, Syracuse, NY,
1000 Butternut Street, Syracuse, NY,
1223 Butternut Street, Syracuse, NY,
500 Oakwood Avenue, Syracuse, NY,
1215 Lodi Street, Syracuse, NY,
359 S. Salina Street, Syracuse, NY,
2002 E. Fayette Street, Syracuse, NY, and
801 Butternut Street, Syracuse, NY.To date, the following items have been recovered: An AR-15 rifle; Ruger handgun, approximately 10 kilograms of synthetic chemicals, several thousand packets of prepackaged synthetic marijuana; approximately $75,000 in U.S. currency; two vehicles; and equipment used to manufacture the synthetic marijuana.
U.S. Attorney Richard S. Hartunian stated, “This case is an example of the challenges faced by law enforcement in combatting the ever changing methods utilized by drug dealers to create synthetic drugs. Today’s arrests demonstrate that our dedicated local, state and federal law enforcement agencies are up to this task. We will continue to aggressively investigate and prosecute those who seek to profit from the sale of these illegal poisons to the youth of our community.”
Drug Enforcement Administration, Special Agent in Charge of the New York Division Brian R. Crowell said, “Synthetic marijuana is nothing more than poison sprayed on poison,” stated DEA Special Agent in Charge Brian R. Crowell. “This organization was manufacturing and distributing100 to 200 pounds of synthetic marijuana per month. They packaged the synthetic marijuana in distribution bags labeled 'Scooby Snax,’ to target our youth. Synthetic drugs are poison. Over the past two years, there were 7,452 exposures of synthetic marijuana reported to the American Association of Poison Control Centers. Kids need to stay away from this and these traffickers have our undivided attention.” SAC Crowell would like to commend the DEA Syracuse Resident Office, the Onondaga County Sheriff’s Office, the Syracuse Police Department, the New York State Police, the United States Marshals Service, the Onondaga District Attorney’s Office, the New York Attorney General’s Office, the Camillus Police Department, and the U.S. Attorney’s Office, Northern District of New York. Further questions or inquiries may be directed to Assistant United States Attorney Carla Freedman, the prosecutor handling the case, at (315) 448-0672.
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1The charge announced today is merely an allegation and the defendants are presumed innocent unless and until proven guilty in a court of law.
Tuesday 19 November 2013
Woman Sentenced to Prison, Ordered to Pay Restitution for Obtaining Fraudulent Student LoansRead the Press Release
PITTSBURGH - A Cranberry Township woman has been sentenced in federal court to 15 months imprisonment, five years of supervised release and ordered to pay $632,613.75 in restitution on her conviction of bank fraud and mail fraud, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence yesterday on Meredith Shuster, 36.
According to information presented to the court, Shuster fraudulently obtained $729,000 in private lender student loans through using the identities and financial information of her parents.
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service, as well as Pennsylvania Higher Education Assistance Agency and the Department of Education for the investigation leading to the successful prosecution of Shuster.
Vernon Parish Man Sentenced to 72 Months in Prison for Downloading Child PornographyRead the Press Release
LAFAYETTE, La. – U.S. Attorney Stephanie A. Finley announced today that Francis M. Buckner Jr., 41, of New Llano, La., was sentenced by U.S. District Judge Richard T. Haik, to 72 months in prison and 10 years of supervised release for possession of child pornography. He was also required to register as a sex offender. Buckner pleaded guilty on July 17, 2013.
According to evidence presented at the guilty plea, Buckner admitted to possessing 36 videos and 144 images of child pornography. Law enforcement officers identified the defendant as a collector of child pornography. He used a software sharing program to download the pornography. A search warrant was obtained for his residence, and the investigation revealed that Buckner had downloaded sadistic material depicting bondage and other sexually explicit scenes involving prepubescent children onto his computer. At the time of his arrest, the defendant admitted he had been downloading child pornography.
The Department of Homeland Security Investigations and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney John Luke Walker prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be reported anonymously.
Two Convicted Felons Sentenced for Federal Firearms ChargesRead the Press Release
Tampa, Florida– U.S. District Judge Steven D. Merryday today sentenced David P. Lawrence (26, Bradenton) to 11 years and 8 months in federal prison for being a felon in possession of a firearm. Previously, on November 6, 2013, co-defendant Mark Alan Finehout (37, Sarasota) was sentenced to 21 months in federal prison for being a felon in possession of a firearm.
Lawrence and Finehout were indicted on June 12, 2013. Both men pleaded guilty to the charges in August 2013.
According to court documents, on April 17, 2013, Lawrence and Finehout purchased a .40 caliber Taurus pistol from another man. During the transaction, Lawrence and Finehout took pictures of the Taurus pistol, and a Norinco model SKS rifle that they were interested in purchasing. A search warrant executed on Lawrence’s cellphone recovered pictures of the Taurus pistol, the SKS rifle, and text messages sent to an individual regarding the potential re-sale of both the Taurus pistol and the SKS rifle. Lawrence and Finehout are previously convicted felons and prohibited from possessing a firearm or ammunition under federal law.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Sarasota County Sheriff’s Office, and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Mark E. Bini.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. Acting United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Toledo Man Sentenced to Nine Years in Prison for Heroin and Firearms CrimesRead the Press Release
A Toledo man was sentenced to more than nine years in prison for drug and firearms convictions, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
United States Senior District Judge James G. Carr sentenced Rashaad J. Doyle, age 30, to 100 months imprisonment, for possessing with intent to distribute approximately 350 grams of heroin and for being a felon in possession of a firearm.
A federal grand jury returned a two-count indictment against Doyle on October 17, 2012 stemming from the seizure of the heroin and a rifle recovered from Doyle’s residence on September 21, 2012.
Doyle was forbidden by law from having a firearm due to previous convictions in Lucas County Common Pleas Court for possession of marijuana, aggravated assault and having weapons while under disability.
This case is being prosecuted by Assistant United States Attorneys Thomas P. Weldon and Matthew Spaulding. The case was investigated by the Federal Bureau of Investigation, the Toledo Police Department and the Toledo Metro Drug Task Force.
Toledo Man Sentenced to Nine Years for Firearms ConvictionRead the Press Release
A Toledo man was sentenced to more than nine years in prison for a firearms conviction, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
Robert Leal, 62, was sentenced to 100 months in prison by U.S. District Judge James Carr after pleading guilty earlier this year to being a felon in possession of a firearm.
On Jan. 25, 2013, law enforcement officers searched Leal’s home and was found to have a Raven 25-caliber handgun and a Mossberg 12-gauge pistol grip shotgun. He was forbidden by law from having a firearm due to previous convictions Michigan related to drug and firearms crimes, according to court documents.
This case is being prosecuted by Assistant United States Attorney Alissa P. Sterling. The case was investigated by the Federal Bureau of Investigation, the Toledo Police Department and the Toledo Metro Drug Task Force.
To Georgia Men Sentenced for Gift Card SchemeRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Derrick Nathaniel Hartfield, 46, of Smyrna, Ga., and Rico Carty Clemons, 48, of Riverdale, Ga., were sentenced by U.S. District Judge Richard T. Haik for defrauding Wal-Mart and other retail businesses nationwide out of hundreds of thousands of dollars through identity theft and wire fraud. Hartfield received 60 months in prison, four years of supervised release, and a $10,000 fine for wire fraud. He also received 24 months in prison, two years of supervised release, and a $5,000 fine for aggravated identity theft. The two prison terms will be served consecutively and the supervised release will be served concurrently. Clemons received 10 months in prison and two years of supervised release for wire fraud. Both defendants were also ordered to pay $14,869 in restitution. Hartfield and Clemons pleaded guilty on May 13, 2013.
According to evidence presented at the guilty plea, Hartfield and Clemons admitted that they used illegally obtained retail store gift cards and applied for credit/debit cards using other peoples’ identities. Hartfield acknowledged during the entry of his guilty plea that he had advised law enforcement officers he may have obtained approximately $1 million since 2005 as a result of the scheme. A Calcasieu Parish Sheriff’s Office deputy working a security detail at a Lake Charles Wal-Mart on July 7, 2012, apprehended Hartfield in the store. The officer then identified Clemons who was in a parked vehicle outside. The two men were in possession of $2,000 and numerous debit and credit cards that were not in their names.
The Calcasieu Parish Sheriff’s Office and the U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Brett L. Grayson prosecuted the case.
Texas Man Sentenced for Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pearsall, Texas, man convicted of Distribution of a Controlled Substance was sentenced on November 18, 2013, by U.S. District Judge Roberto A. Lange.
Ricardo Avila, age 53, was sentenced to 33 months of imprisonment, a $1,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Avila was indicted for the above charge by a federal grand jury on November 19, 2012. He pled guilty on August 19, 2013.
The conviction stems from an incident occurring on or about April 12, 2012, when an undercover officer was introduced to Avila, and a purchase of cocaine was arranged. Avila delivered to the undercover officer a substance that was confirmed to be 28.3 grams of powder cocaine, a Schedule II controlled substance.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Avila was immediately turned over to the custody of the U.S. Marshals Service.