Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
16 January 2014
Jury Convicts Mexican Truck Driver in Methamphetamine/Heroin ConspiracyRead the Press Release
LAREDO, Texas - A federal jury has returned a guilty verdict against Juan Manuel Reyes Vasquez, 36, of Nuevo Laredo, for engaging in a conspiracy to posses with intent to distribute in excess of a kilogram of heroin and 500 grams of methamphetamine, announced United States Attorney Kenneth Magidson. The verdicts were returned following four days of trial and approximately 10 hours of deliberation.
Vasquez and others were identified during a long term Organized Crime Drug Enforcement Task Force (ICDETF) investigation as being part of conspiracy that was engaged in smuggling multiple kilograms of methamphetamine and heroin from Nuevo Laredo to Laredo for further distribution to other areas to include Dallas.
The jury heard evidecne that Vasquez was a tractor-trailer driver who was employed with a legitimate company and who would travel regularly between Nuevo Laredo to Laredo to deliver goods for the company. Unbeknownst to his employer, Vasquez was also illegally importing heroin in his tractor. After delivering the company’s goods in Laredo, he deviated from his route to meet a co-conspirator and exchange narcotics.
Agents were able to identify and locate the tractor in question and observe a meeting between Vasquez and co-conspiractor Blanca Abundez. Following the meeting, officers conducted a traffic stop of her vehicle and discovered two separate bags each containing eight bundles of drugs. Abundez had transported eight bundles of methamphetamine believing she was going to deliver the drugs to Vasquez, but instead Vasquez delivered eight bundles of Heroin to her.
Following the traffic stop and arrest of Abundez, agents were able to discover that several bundles of drugs still remained at the Abundez residence. A search warrat was executed which resulted in the discovery of an additional 17 bundles of methamphetamine.
The total weight of drugs seized for the two days was approximately 28 kilograms of methamphetamine and nine kilograms of heroin. The overall long-term OCDETF investigation yieled a total of 61, 23 and nine kiolgrams of methamphetamine, cocaine and heroin, respectively.
Four others previously entered pleas of guilty and are awaiting sentencing - Christian Abundez, 23, and Blanca Abundez, 28, both of Laredo; Ilmar Sierra, 35, of Dallas; and Rolando Salinas Apac, 33, of Nuevo Laredo. Vasquez will remain in custody pending sentencing which will be set at a later date before U.S. District Judge George P. Kazen.
The case was investigated by DEA with the assistance of the Webb County District Attorney’s Office and the Laredo Police Department. Assistant United States Attorney Mary Lou Castillo prosecuted the case.
Jury Convicts Cincinnati Man of Producing Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – A U.S. District Court jury today convicted James O. Napier, 39, of Cincinnati of producing child pornography involving an 11-month old infant and an approximately nine-year old child and placing the videos and images on the internet.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), and agencies in the Greater Cincinnati Internet Crimes Against Children (ICAC) Task Force announced the verdict returned today following a trial that began January 13 before Chief U.S. District Judge Susan Dlott.
Trial testimony showed that in November 2009 Napier used an 11-month old infant for sexual gratification, molested the infant and made a video recording of it before placing it on the internet. Other testimony showed that as recently as November 2012 Napier sexually exploited a girl who was approximately nine years-old and produced videos of those acts.
FBI agents began investigating Napier based on information from the FBI office in Phoenix that Napier was advertising the sale of child pornography on a website. FBI agents arrested Napier on January 18, 2013. He has been held without bond.
After less than one hour of deliberation, the jury convicted Napier of nine counts of production of child pornography, each punishable by at least 15 and up to 30 years in prison. The jury also convicted Napier of one count each of transportation of child pornography, distribution of child pornography and receipt of child pornography. Each of those crimes is punishable by at least five years and up to 20 years in prison. Judge Dlott will schedule a date for sentencing.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Stewart commended the investigation by FBI agents and investigators with the Greater Cincinnati ICAC as well as Assistant U.S. Attorneys Christy Muncy and Ben Glassman, who are prosecuting the case.
Agencies participating in the Greater Cincinnati ICAC, in addition to FBI and the U.S. Attorney’s Office include the U.S. Marshals Service, U.S. Secret Service, Hamilton County Prosecutor Joe Deters, Hamilton County Sheriff Jim Neil and the police departments in Amberley Village, Blue Ash, Cincinnati, and West Chester.
Judge Sends Armed Robber to Prison for 30 YearsRead the Press Release
PHILADELPHIA - Hakeem Paris, 23, of Philadelphia, was sentenced today to 30 years and one month in prison for two armed robberies which he committed in 2010. A federal jury convicted Paris, on December 12, 2012, of one count of conspiracy to commit robbery which interfered with interstate commerce, one count of robbery which interfered with interstate commerce, one count of attempted robbery which interfered with interstate commerce, two counts of using and carrying a firearm during a crime of violence, and one count of being a convicted felon in possession of a firearm.
On May 10, 2010, Paris conspired with another person to commit a gun-point robbery of Bridesburg Pizza, located at 4776 Richmond Street, in Philadelphia, where he ordered the employees of the pizza shop to move to the back of the store while holding them at gunpoint. One of the victims later stated “I thought we were dead. I truly believed he was going to kill all of us because he kept saying he was going to shoot us.” Less than two weeks later, on May 23, 2010, he attempted to rob the Wawa convenience store located at 4371 Richmond Street, in Philadelphia.
In addition to the prison term, U.S. District Court Judge Mary McLaughlin ordered three years of supervised release, and a $600 special assessment.
This case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It was prosecuted by Assistant U.S. Attorney Thomas M. Zaleski.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Johnson County Woman Sentenced to 5 Years in Fatal Prescription Drug OverdoseRead the Press Release
KANSAS CITY, KAN. A Johnson County woman was sentenced Wednesday to five years in federal prison in connection with the death of a 20-year-old man who died from a prescription drug overdose, U.S. Attorney Barry Grissom said.
Stacy Ashley, 37, Edgerton, Kan., pleaded guilty to one count of distributing oxymorphone, a prescription painkiller.
In her plea, she admitted that on July 30, 2011, she distributed oxymorphone and amphetamine to the victim, resulting in his death. The victim also obtained oxycodone, morphine and alprazolam from co-defendant Tammy Redel. He crushed up several pills obtained from the two women and snorted the drugs. He drifted in and out of consciousness throughout the evening before police and emergency medical personnel were called.
Co-defendant Tammy Redel is awaiting sentencing.
Grissom commended the Garnett Police Department, the Kansas Bureau of Investigation and Assistant U.S. Attorney Sheri McCracken for their work on the case.
Jackson County Man Sentenced for Methamphetamine ConspiracyRead the Press Release
On January 9, 2014, Charles W. Scallion, 41, of Carbondale, Ill., was sentenced in United States District Court in Benton on a one-count indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Scallion, who had previously pled guilty to the methamphetamine offense, was sentenced to 151 months in federal prison, to be followed by 6 years of supervised release, and fined $300. The offense occurred between May 2012, and March 28, 2013, in Jackson County. Evidence at the plea and sentencing hearings established that Scallion was involved with others in the manufacture of methamphetamine. During the conspiracy, other individuals supplied Scallion with pseudoephedrine to use to cook methamphetamine. The district court determined that Scallion’s relevant conduct involved more than 165 grams of pseudoephedrine.
The investigation was conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, and the Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Hudson County, N.J., Man Sentenced to Eight Years in Prison for Distribution of Child PornographyRead the Press Release
NEWARK, N.J. - A Hudson County, N.J., man was sentenced today to 96 months in prison for distributing images and videos of child sex abuse over the Internet, U.S. Attorney Paul J. Fishman announced.
Jonathan Martin, 24, of Jersey City, N.J., and Short Hills, N.J., previously pleaded guilty before U.S. District Judge Stanley R. Chesler to Count One of an indictment charging him with knowing distribution of child pornography. Judge Chesler imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Martin admitted that on April 30, 2012, he made images and videos of child sexual abuse that were stored on his home computer available for others to download via an online peer-to-peer file-sharing network. On that date, an undercover law enforcement agent successfully downloaded from Martin 15 images files of child pornography via the file sharing network.
In addition to the prison term, Judge Chesler sentenced Martin to five years of supervised release and ordered him to pay $35,000 in restitution.
U.S. Attorney Fishman credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford, and the Jersey City Police Department, under the direction of Chief Robert Cowan, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney's Office Criminal Division in Newark.
14-023
Defense counsel: Alan Zegas Esq., Chatham, N.J.Guam and CNMI Commemorates Prevention and Awareness of Human Trafficking and Stalking MonthRead the Press Release
January 18, 2014January 2014 has been proclaimed as National Slavery and Prevention and Awareness of Human Trafficking Month by President Barack Obama. On January 10, 2014, Governor of Guam Eddie Baza Calvo and Governor Eloy S. Inos of the CNMI proclaimed “Stalking and Human Trafficking” month. Communities nationwide join together to raise awareness about the ills of human trafficking, slavery and stalking.
The Guam Human Trafficking Task Force (HTTF) has organized the following events to commemorate Human Trafficking Awareness and Prevention Month in Guam:
WAVE in front of Skinner Plaza, Hagatna from 4:00 p.m. to 6:00 p.m- Friday January 17, 2014
- Wednesday, January 22, 2014
The CNMI Human Trafficking Intervention Coalition has planned a community outreach for January 23, 2014, from 5:00 p.m. to 9:00 p.m. at the Thursday Night Market in Garapan, and a Human Trafficking Awareness Workshop on January 29, 2014, from 8:00 a.m. to 9:00 a.m. to be held at Commonwealth Health Care Corporation.
The Guam Human Trafficking Task Force and the CNMI Human Trafficking Intervention Coalition comprised of representatives from federal and local law enforcement agencies, victim service providers, social service providers, medical and health professionals, faith based organizations, and other community partners, will continue to respond to the needs of human trafficking victims and their families and to hold offenders accountable.
For more information about the events, please contact Mae Blas at (671) 477-4144 or via email at [email protected].
Attached are photos taken at the Proclamation Signing in Guam and in the CNMI.
Guam photo of some of the Human Trafficking Task Force members, courtesy of Cynthia Cabot from the Guam Coalition Against Sexual
Assault & Family Violence.
CNMI photo of Human Trafficking Intervention Coalition, courtesy of
Angel Demapan from the CNMI Governor’s Office.Greenville Man Pleads Guilty to Child Pornography OffenseRead the Press Release
A Greenville man pled guilty in federal district court on January 16, 2014, to Attempt to Access with Intent to View Visual Depictions of Minors Engaged in Sexually Explicit Conduct, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Terry L. Adcock, 65, Greenville, Illinois, faces a term in federal prison of not more than ten (10) years, a fine up to $250,000, and a term of supervised release of five (5) years to life when he is sentenced. Sentencing is scheduled for May 16, 2014, in East St. Louis, Illinois. Adcock also agreed to forfeit the computers which contained the visual depictions. In addition, upon his release from prison, Adcock must register as a sex offender as a condition of his supervised release. Adcock is being held without bond pending sentencing.
An FBI nationwide investigation revealed IP addresses that accessed a web forum known to contain links to images and/or videos of visual depictions of minors engaged in sexually explicit conduct. The web forum listed a detailed description of the image and/or video file that a user could link to. This investigation revealed that, between October and November, 2011, an IP address assigned to Adcock tried to access the web forum on five (5) separate occasions.
On December 18, 2012, FBI Special Federal Officers spoke with Adcock at his residence about the results of the investigation. Adcock admitted that he had been searching for and viewing images of child pornography on the internet since he bought his first computer approximately twenty years prior, and that he was interested in prepubescent girls between the ages of 10 and 12. He said that, by googling a search term commonly associated with child pornography, he would gain access to thousands of websites that contained child pornography. Adcock gave consent to the officers to search and seize, among other things, a Gateway desktop computer and a Dell Inspiron laptop computer which he used to access and view child pornography.
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 Federal Bureau of Investigation's Springfield Child Exploitation Task Force (SCETF). The case is assigned to Assistant United States Attorney Angela Scott.
Freeport Man Pleads Guilty to Federal Tax FraudRead the Press Release
ROCKFORD — A Freeport, Ill. man pleaded guilty today in federal court before U.S. District Judge Frederick J. Kapala to a federal charge relating to his preparation of fraudulent federal income tax returns. The defendant, JASON BOOTH, 32, admitted that he conspired with others to defraud the United States Department of the Treasury by obtaining payments through fraudulent claims for individual income tax refunds.
According to the written plea agreement, between March 2006 and January 2008, Booth created false returns, knowing that the taxpayers whose names he put on the false returns had not authorized him to use false information in the returns. Some of the taxpayers had authorized Booth to create income tax returns for them, but many did not know Booth. Due to the false information, the income tax returns claimed refunds that were not actually owed to the taxpayers. After creating the false returns, Booth filed them electronically with the IRS. When claimed refunds were approved and disbursed by the IRS, the refunds were wired to bank accounts that had been designated by Booth when he electronically filed the false returns. Some of those accounts were owned by Booth, but several were owned by others that conspired with Booth. The co-conspirators were allowed to keep a portion of each refund in exchange for the use of their accounts for the deposit of the refunds. They delivered the balance of the refunds to Booth. Booth used the co-conspirators accounts because he was not always able to open accounts in his name and because using varied accounts made discovery of his filing false returns less likely. Booth admitted that as a result of the filing of the false federal income tax returns, $159,926.98 was disbursed by the IRS into the accounts he designated.
Booth is scheduled to be sentenced on April 23, 2014, at 2:30 p.m. Booth faces up to 10 years’ imprisonment, up to 3 years of supervised release, and a maximum fine of $250,000. The Court may also impose a term of probation of between 1 and 5 years, and must order restitution to the victims of the offense in an amount determined by the Court.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and James C. Lee, Special Agent-In-Charge of the Chicago Field Office of Internal Revenue Service - Criminal Investigation Division.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Plea Agreement
Four Sentenced for Sale of Heroin in MorgantownRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Four members of a Morgantown heroin distribution ring, including three men from Detroit, were sentenced to federal prison.
According to United States Attorney William J. Ihlenfeld, II, the following individuals had prison sentences imposed by U.S. District Court Judge Irene Keeley for their roles in the trafficking of heroin:
- SEAN MILLER PHILLIPS, JR., age 31, of Eastpoint, Michigan was sentenced to 63 months in prison and six years of supervised release for “Aiding and Abetting in the Distribution of Heroin within 1000 feet of a Protected Location.”
- JAMILA MCLAUGHRY, age 25, of Morgantown, West Virginia, was sentenced to 37 months in prison and six years of supervised release for “Distribution of Heroin within 1,000 Feet of the North Elementary School” in Monongalia County.
- EDDIE PICKETT, age 20, of Detroit, Michigan, was sentenced to 37 months in prison and three “Possession with Intent to Distribute Heroin.”
- WILLIAM ANDERSON, age 20, of Detroit, was sentenced to 37 months in prison and three “Possession with Intent to Distribute Heroin.”The case was investigated by the Mon Valley Drug & Violent Crime Task Force, consisting of officers from the Morgantown Police Department, the Monongalia County Sheriff’s Department, and the Drug Enforcement Administration.
In other sentencing hearings before Judge Keeley, Ihlenfeld said that FRANKLIN MOORE, age 43, of Procious, West Virginia, was sentenced to 92 months in prison and three years of supervised release as a result of his conviction of “Felon in Possession of a Firearm.” MOORE was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
SPAYNE SWINDLE, age 19, of Pittsburgh, Pennsylvania, was sentenced to 57 months in prison and six years of supervised release for “Distribution of Cocaine within 1,000 Feet of the Pierpont Community and Technical College.” The Court also ordered the forfeiture of $1,968 in U.S. currency and four cellular telephones seized from SWINDLE. SWINDLE was remanded to the custody of the United States Marshal pending designation to a Federal institution. The case was investigated by the Greater Harrison County Drug and Violent Crime Task Force.
AARON MONTREAL RIGGIN, age 37, of Raleigh, North Carolina, was sentenced to 37 months in prison and three years of supervised release for “Conspiracy to Distribute Oxycodone” in Morgantown, WV, between September of 2011 to April 21, 2012. The Court also ordered the forfeiture of $10,000 seized from RIGGIN. This case was investigated by the West Virginia State Police-Bureau of Criminal Investigations.
JOHN CHAMBERS, age 62, of Clarksburg, was sentenced to 36 months in prison and six years of supervised release for “Possession of Child Pornography.”
SASHA PEGGUES, age 28, of Morgantown, was sentenced to 27 months in prison and five years of supervised release for “Aggravated Identity Theft.” PEGGUES forged checks belonging to an elderly man for whom she was providing care-giving services for her personal use. The Court also ordered PEGGUES to make restitution in the amount of $27,960.90. PEGGUES was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was investigated by the United States Postal Inspection Service and the Morgantown Police Department.
Judge Keeley also took several guilty pleas, according to Ihlenfeld, as follows:
MATTHEW VANHORN, 27, and MEGAN COUNTS, age 24, of Stonewood, West Virginia, entered pleas of guilty to “Possession with Intent to Distribute Heroin within 1,000 Feet of the Stonewood City Park.” CHARLES COUNTS, age 42 and ONDREA KATHERINE COUNTS, age 41, of Stonewood, entered pleas of guilty to “Distribution of MDMA (Ecstasy) within 1,000 Feet of Oakmound Apartments,” and MARY WILCOX, age 43, of Stonewood; entered a plea of guilty to “Maintaining a Drug-Involved Premise.” VANHORN, who is in custody pending sentencing, and MEGAN COUNTS, CHARLES COUNTS and ONDREA COUNTS, who are free on bond pending sentencing, face up to 40 years in prison. WILCOX, who is in custody sentencing, faces up to 20 years in prison.
EVAN MICHAEL SHAW, age 22, of Bridgeport, West Virginia, entered a plea of guilty to “Distribution of Buprenorphine within 1,000 Feet of West Virginia Junior College.” As part of his plea, SHAW will forfeit $906 in United States currency which constitutes proceeds obtained from the illegal activity. SHAW, who is free on bond, faces up to 20 years in prison.
The VANHORN and SHAW cases were investigated by the Greater Harrison Drug and Violent Crime Task Force.
The cases referenced herein were prosecuted by Assistant United States Attorneys Shawn Morgan, Zelda Wesley, and Andrew Cogar.
Four Members of Jewelry Theft Ring Plead GuiltyRead the Press Release
Four men have pleaded guilty for their roles in a highly sophisticated and violent organization that targeted jewelry couriers in Georgia and Texas. The defendants were caught as part of a national effort to find and prosecute roving groups of robbers who travel around the country targeting jewelry couriers and other business people.
Acting Assistant Attorney General Mythili Raman and U.S. Attorney Sally Quillian Yates of the Northern District of Georgia made the announcement.
Honorio Sanchez-Valencia, 46, of Gwinnett, Ga., and Jose Vicente Ramirez-Rodriguez, 38, John Rodriguez, 37, and Ali Alejandro Godoy-Maximo, 25, each of Los Angeles, Ca., pleaded guilty this week in the Northern District of Georgia to Hobbs Act robbery for participating in the robbery of a jewelry courier on Jan. 31, 2013, at a QuikTrip gas station in Buford, Ga. The charge carries a maximum penalty of 20 years in prison. In addition, Rodriguez pleaded guilty to being an illegal alien in possession of a handgun, which carries a maximum penalty of 10 years in prison. Sentencing has not been scheduled.
Court records show that on Jan. 31, 2013, as part of a plan to identify and rob a jewelry courier, the courier-victim was followed by Ramirez-Rodriguez to a QuikTrip gas station. As he was following the courier, Ramirez-Rodriguez contacted Sanchez-Valencia to help him with the robbery. Sanchez-Valencia, in turn, contacted the other defendants, all of whom came to the gas station together. When the courier was putting gas in his vehicle, two of the defendants approached him, with one restraining him with a knife while another smashed the vehicle window and took a briefcase containing over $125,000 in assorted jewelry.
Sanchez-Valencia also admitted his involvement in a similar robbery that occurred in Dallas on Aug. 27, 2012. In that robbery, two jewelry couriers were at a restaurant when Sanchez-Valencia briefly came into the restaurant to conduct surveillance on them and to determine the layout of the restaurant. Within a few minutes after Sanchez-Valencia left, three masked men with a gun came into the restaurant and robbed the jewelry couriers of two briefcases containing over $500,000 of jewelry. Some of that jewelry was recovered during the execution of a search warrant at a storage unit rented by Sanchez-Valencia.
This case was investigated by the FBI, ICE and the Gwinnett County Police Department, with assistance from the Dallas Police Department. This case is being prosecuted by Laura Gwinn of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kim Dammers of the Northern District of Georgia.Former Veterans Affairs Police Chief Pleads Guilty in Manhattan Federal Court to Participating in Kidnapping ConspiraciesRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced that RICHARD MELTZ pled guilty today to charges arising from his involvement in two separate conspiracies to kidnap, rape, and murder specific women. MELTZ, at the time the Chief of Police, United States Department of Veterans Affairs, at the Bedford Veterans Affairs Medical Center, conspired to kidnap, rape, and murder the wife of a man he had met over the Internet, and a female Federal Bureau of Investigation (“FBI”) agent working in an undercover capacity. MELTZ was charged in April 2013 and pled guilty today before U.S. District Court Judge Paul G. Gardephe.
Manhattan U.S. Attorney Preet Bharara said: “Richard Meltz, a former law enforcement officer, now stands convicted of serious federal crimes for his involvement in two sadistic kidnapping, rape, and murder conspiracies. Prosecuting and bringing to justice perpetrators of such depraved and violent crimes is at the core of this Office’s mission. Meltz’s guilty plea today furthers that mission and brings us one step closer to resolving this case.”
According to the Information to which MELTZ pled guilty, statements made during the plea proceeding, and other court documents:
Between the spring of 2011 and January 2013, MELTZ, Robert Christopher Asch, and Michael Van Hise engaged in a series of electronic email and instant message communications during which they discussed and planned the kidnapping, torture, and murder of Van Hise’s wife and other members of Van Hise’s family. Van Hise sent to MELTZ and Asch photographs of these family members, and the approximate location of their residence. MELTZ engaged in detailed discussions about kidnapping and brutalizing the proposed victims, and ultimately assisted Van Hise and Asch in planning a kidnapping, rape, and murder. The co-conspirators ceased active planning of the kidnapping when the FBI arrested New York City Police Officer Gilberto Valle for a related kidnapping conspiracy, and began investigating Van Hise.
In addition, beginning in approximately January 2013, MELTZ, Asch, and an FBI agent working in an undercover capacity (“UC-1”) began discussions about kidnapping a woman, who unbeknownst to MELTZ and his co-conspirators, was also an FBI agent working in an undercover capacity. MELTZ participated in multiple conversations with both UC-1 and Asch about the conspiracy’s objective to kidnap and commit acts of violence against the intended victim and other women. He advised Asch to obtain a stun gun to subdue the intended target, and based on MELTZ’s direction, Asch purchased a high-voltage Taser gun at a gun show in Pennsylvania, which they intended to use in the commission of the kidnapping offense. Charges against the two alleged co-conspirators, Michael Van Hise and Robert Christopher Asch, remain pending, and they are scheduled to begin trial in early 2014.
MELTZ, 65, of Linden, New Jersey, pled guilty to two counts of engaging in a conspiracy to commit kidnapping. He faces a maximum sentence of 10 years in prison and is scheduled to be sentenced by Judge Gardephe on May 22, 2014, at 2:30 PM.
Mr. Bharara praised the investigative work of the FBI. He also thanked the Department of Veterans Affairs and the New Jersey State Police for their assistance in the investigation.
The case is being prosecuted by the Office’s Violent Crimes Unit. Assistant United States Attorneys Brooke E. Cucinella and Hadassa Waxman are in charge of the prosecution.
The charges against Van Hise and Asch are merely accusations, and those defendants are presumed innocent unless and until proven guilty.
U.S. v. Richard Meltz S5 Information
Former U.S. Secret Service Agent Indicted for Stealing and Using Counterfeit Currency and Making False StatementsRead the Press Release
Jacksonville, Florida – Acting United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Anthony Eugene Preissig (47, St. Johns County) with stealing counterfeit currency from the United States Secret Service (USSS), passing it at a gas station, and later making false statements about his crimes. If convicted on all counts, Preissig faces a maximum penalty of up to 35 years in federal prison.
According to the indictment, Preissig was a USSS Special Agent assigned to investigate violations of federal criminal laws. Using his position, he stole counterfeit United States currency that the Marion County Sheriff’s Office had seized and submitted to the USSS - Jacksonville office. Preissig then took a counterfeit $100 bill and tried to use it at a gas station in St. Johns County. When confronted, he lied to law enforcement agents about his crimes. Preissig retired from the USSS in 2012.
David Nieland, Special Agent in Charge of the Miami Field Office, Department of Homeland Security, Office of Inspector General, said, “Whenever a law enforcement officer engages in illegal activity, it erodes the public trust. Such actions by few can tarnish the badges of the many who serve to protect America each day. Corruption remains a top priority of the DHS OIG and we remain committed to holding those who violate the public’s trust accountable for their illegal actions.”
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Department of Homeland Security’s Office of the Inspector General, the United States Secret Service’s Inspections Division, and the St. Johns County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Vincent A. Citro.
Former Stockbroker Arrested for Perpetrating Investment FraudRead the Press Release
BOSTON – A Cape Cod man was charged today with defrauding three people out of $800,000 as part of a long-term investment scam.
Jeffrey M. Semanscin, 38, of Marstons Mills, was charged in a criminal complaint with violating the 1940 Investment Advisers Act. The charges allege that between 2007 and late 2013, Semanscin ran an investment fraud scheme in which he pretended to be the managing director of a private equity fund called "Ibex Omega Private Equity." Three investors invested a total of about $800,000 with him. While Semanscin, a previously registered stockbroker, sent the investors periodic performance summaries and other financial information for the purported fund, the fund did not exist. Semanscin simply used the investors' money for his own personal expenses. By November 2013, Semanscin had dissipated all but $450 of the investor funds entrusted to him.
The case was referred to the United States Attorney’s Office by the U.S. Securities & Exchange Commission (SEC), which became aware of the scheme in October 2013 through a tip submitted through the SEC’s web site.
If convicted, Semanscin faces a maximum sentence under the statute of five years in prison, three years of supervised release and a $10,000 fine. The government will also seek $800,000 in restitution to Semanscin’s victims.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Andrew E. Lelling of Ortiz’s Economic Crimes Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Springdale Borough Police Officer Sentenced to Prison for Deprivation of Civil RightsRead the Press Release
PITTSBURGH - A former Springdale Borough police officer has been sentenced in federal court to one year and one day of imprisonment, to be followed by three years of supervised release, on his conviction of deprivation of civil rights, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Mark E. Thom, Jr., 32.
According to information presented to the court, on or about Dec. 17, 2011, Thom, a police officer of the Springdale Borough Police Department, punched and used a Taser on a man who was in handcuffs after Thom had arrested him for driving under the influence and driving with a suspended license.
U.S. Attorney Hickton said, “The vast majority of law enforcement officials uphold the highest standard of public trust. But when someone abuses his position, we will aggressively hold him accountable. We argued that a prison sentence was especially just, not only for the crime he committed, but also because he was discouraging other police officers from cooperating with us and providing information.”
Assistant United States Attorney Shaun E. Sweeney prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Thom.
Former Raleigh Real Estate Developer Receives 27 Years for Multi-million Dollar Fraud Upon Investors and BanksRead the Press Release
RALEIGH – The United States Attorney’s Office announces that in federal court yesterday Chief United States District Judge James C. Dever III sentenced former real estate developer JAMES THOMAS WEBB, 52 of Leland to 327 months imprisonment followed by 5 years of supervised release. The Court further ordered that WEBB make total restitution of $11,946,739.80 to his victims.
“James Webb betrayed the trust of investors and left neighborhoods in two states blighted with dilapidated homes. His lengthy prison sentence emphasizes the severity and impact of this type of crime on our communities and should reassure the public of the FBI’s commitment to hold these offenders accountable,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
“The FDIC OIG is pleased to join the U.S. Attorney’s Office and our law enforcement colleagues in announcing the sentencing of this individual whose criminal actions caused serious harm to the community, individual investors, and financial institutions. Mr. Webb’s sentencing should deter others who may pursue criminal behavior. This sentencing confirms that those who undermine the integrity of the financial system will be brought to justice and held accountable for their crimes,” commented Jason T. Moran, Special Agent in Charge of the Federal Deposit Insurance Corporation’s Office of Inspector General.
At the sentencing hearing evidence established that between 2002 and 2006 WEBB operated various real estate companies, including Alpine Properties, LLC and Webb Builders, LLC for a profit. WEBB, who took out a full page advertisement in the Triangle Business Journal in 2004, promised investors in multiple states quick, large, and safe financial gains by investing money with him. WEBB promised investors that he would use their money to purchase, renovate, and resell properties to first-time home buyers in various states, including North Carolina, Virginia, and Tennessee. WEBB also convinced investors located in various states to purchase properties from his companies. The properties were supposed to have been fully renovated and worth approximately $65,000 each. WEBB further promised to maintain the properties for investors and collect rent for them which would be used to fund mortgage payments.
The evidence established that despite his alleged philanthropic and humanitarian objectives, WEBB carried out a fraud upon both the investors who gave cash to WEBB and the banks and lenders who WEBB caused to disburse loan proceeds. Evidence showed that the properties purchased by Webb’s investors were not fully renovated as WEBB had promised. Evidence also showed that WEBB took money from one investor to pay other investors, instead of using all of the money for the promised renovations. WEBB also failed to maintain and rent the properties, as he promised. In spite of this, the evidence showed that WEBB lived lavishly, residing in a multi-million dollar mansion, driving expensive vehicles including a Bentley, traveling extensively, and otherwise paying himself handsomely.
The evidence further established that WEBB conspired with former attorney, Amy Robinson, to systematically falsify closing statements associated with properties WEBB caused investors to purchase. The Government presented evidence that instead of paying off prior lienholders out of the sales proceeds, as represented on the settlement statements, Robinson diverted the funds to the benefit of WEBB.
The evidence also showed that WEBB conspired with a former West Virginia appraiser, Larry Max McDaniel, and his associate, Jackie Gale Weaver, to falsify the appraisals associated with the properties purchased by investorsAlthough the appraisals stated that McDaniel physically inspected the properties, in fact, McDaniel never went to any of the more than 200 properties that WEBB was supposed to have renovated. Instead, the appraisals and their contents were generated by Weaver, with the assistance of WEBB’s employees and contractors. To justify WEBB’s requested value of $65,000 per property; McDaniel and Weaver frequently used other WEBB properties as comparable sales.
Evidence established that investors began to have difficulty reaching WEBB when WEBB failed to pay them the promised returns, or when investors began to receive notices from city governments regarding the state of the properties. The Government presented evidence that WEBB abruptly left his north Raleigh mansion for Florida in 2004, where he eventually stopped taking calls from his investors. Even after causing catastrophic losses to his victims, and leaving neighborhoods blighted with abandoned homes, WEBB continued to market his investment strategies in Florida, on the internet, and in a book he authored, entitled “Save Your Neighborhood.”
Although WEBB took the witness stand at the sentencing hearing in his defense, he admitted upon cross examination that he committed the fraud, and that all of the losses alleged by the United States were a foreseeable consequence of his crime. Multiple investors from North Carolina, South Carolina, Georgia, and California also appeared and spoke out against WEBB at the hearing.
Investigation of this case was conducted by the Federal Bureau of Investigation, the United States Postal Inspection Service, the United States Department of Housing and Urban Development Office of the Inspector General, and the Federal Deposit Insurance Corporation Office of the Inspector General, with the assistance of the North Carolina Appraisal Board. Assistant United States Attorney William M. Gilmore prosecuted the case.Former Portsmouth Sheriff’s Office Sergeant Sentenced for Conspiracy and BriberyRead the Press Release
NORFOLK, Va. – A former sergeant of the Portsmouth Sheriff’s Office (PSO) was sentenced to serve 15 months in prison today for accepting bribes in exchange for favors and referrals.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division made the announcement.
Melvin Hike, 65, of Portsmouth, Va., was sentenced by U.S. District Judge Arenda L. Wright Allen of the Eastern District of Virginia. Hike was also sentenced to serve three years of supervised release and to pay a $10,000 fine.
On Oct. 8, 2013, Hike pleaded guilty to conspiracy and federal programs bribery. According to court documents, throughout the relevant time period of 2008 to 2012, Hike was a PSO sergeant assigned to the warrant squad. Ulysses Stephenson, aka “Tugger,” was a bail bondsman based in Portsmouth whose income depended on the number of arrestee clients he served. At various times between 2008 and 2012, Stephenson gave Hike cash payments and other items of value, and in exchange, Hike referred arrestees to Stephenson as prospective clients. Stephenson previously pleaded guilty to conspiracy and federal programs bribery in connection with bribing Hike and he was sentenced to 30 months in prison on Nov. 2, 2012.
This case was investigated by the FBI. The case was prosecuted by Trial Attorneys Monique Abrishami and Peter Mason of the Criminal Division’s Public Integrity Section and Special Assistant U.S. Attorney Amy E. Cross of the Eastern District of Virginia.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Portsmouth Sheriff’s Office Sergeant <br /> Sentenced for Conspiracy and BriberyRead the Press Release
A former sergeant of the Portsmouth Sheriff’s Office (PSO) was sentenced to serve 15 months in prison today for accepting bribes in exchange for favors and referrals.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Acting U.S. Attorney Dana J. Boente of the Eastern District of Virginia made the announcement.
Melvin Hike, 65, of Portsmouth, Va., was sentenced by U.S. District Judge Arenda L. Wright Allen of the Eastern District of Virginia. Hike was also sentenced to serve three years of supervised release and to pay a $10,000 fine.
On Oct. 8, 2013, Hike pleaded guilty to conspiracy and federal programs bribery. According to court documents, throughout the relevant time period of 2008 to 2012, Hike was a PSO sergeant assigned to the warrant squad. Ulysses Stephenson, aka “Tugger,” was a bail bondsman based in Portsmouth whose income depended on the number of arrestee clients he served. At various times between 2008 and 2012, Stephenson gave Hike cash payments and other items of value, and in exchange, Hike referred arrestees to Stephenson as prospective clients. Stephenson previously pleaded guilty to conspiracy and federal programs bribery in connection with bribing Hike, and he was sentenced to 30 months in prison on Nov. 2, 2012.
This case was investigated by the FBI. The case was prosecuted by Trial Attorneys Monique Abrishami and Peter Mason of the Criminal Division’s Public Integrity Section and Special Assistant U.S. Attorney Amy E. Cross of the Eastern District of Virginia.Former Indian Point Supervisor Sentenced in White Plains Federal Court for Falsifying Nuclear Facility RecordsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DANIEL WILSON was sentenced today in White Plains federal court to 18 months’ probation for engaging in deliberate misconduct while serving as Chemistry Manager at Indian Point Energy Center (“Indian Point”), a nuclear power plant in Westchester County. WILSON was sentenced by United States District Judge Nelson Román, who also imposed a $500 fine.
U.S. Attorney Preet Bharara stated: “The safe operation of the Indian Point nuclear power facility is of critical importance to our communities in and around it. This Office will be vigilant about prosecuting criminal misconduct that takes place at the facility.”
According to the felony Information to which WILSON pleaded guilty, the Complaint, and information provided for purposes of sentencing:
Indian Point maintains a backup system of emergency generators for use in part to provide power in the event of a power outage and shutdown. WILSON, the Chemistry Manager at Indian Point from 2007 through 2012, was responsible for, among other things, ensuring that certain aspects of the operation at Indian Point were in compliance with technical specifications required by the Nuclear Regulatory Commission (“NRC”). One such requirement related to the amount of particulate matter in the diesel fuel used to power emergency generators at Indian Point, which could not exceed a set limit. In 2011, tests of the diesel fuel maintained for use in powering the emergency generators at Indian Point showed that the ratio of particulate matter in the diesel fuel exceeded the limit set by the NRC.
In February 2012, WILSON concealed material facts from his employer and the NRC by fabricating test data, falsely showing that resampling tests of diesel fuel tested below the applicable NRC limit. In fact, no such resamples were taken, and the purported test data were fabrications. Later in February 2012, WILSON, in response to questioning by other employees of Indian Point in advance of an inspection by the NRC, wrote a report – the kind on which the NRC ordinarily relies in inspecting nuclear facilities for safety – in which he gave a false explanation for the lack of supporting documentation for his fabricated test results. In a subsequent interview with NRC personnel, WILSON admitted that he had fabricated the test results so that Indian Point would not have to shut down.
In April 2012, Wilson resigned from Indian Point.
On October 16, 2013, WILSON pleaded guilty to a one-count Information charging him with deliberate misconduct in connection with a matter regulated by the NRC, in violation of Title 42, United States Code, Section 2273.
Mr. Bharara praised the efforts of the NRC Office of Investigations in connection with the investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Benjamin Allee is in charge of the prosecution.
U.S. v. Daniel Wilson Information
U.S. v. Daniel Wilson ComplaintFormer Georgia Department of Defense Employee Indicted for CorruptionRead the Press Release
ATLANTA – Raytosha Elliott, a former contracting official with the Georgia Department of Defense, has been indicted for allegedly awarding contracts in exchange for illegal kickbacks.
“Ms. Elliott took advantage of the trust her job afforded her to award no-bid contracts by giving them to her friends,” said United States Attorney Sally Quillian Yates. “The defendants pocketed nearly $75,000 from their scheme for work that was never completed, and denied services meant to maintain facilities supporting those who serve this country.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: "This case is a direct result of government personnel detecting criminal financial irregularities and reporting them to the proper authorities. The FBI will continue to dedicate significant investigative resources to ensure that federal money is spent appropriately and as intended."
Special Agent in Charge John F. Khin, Southeast Field Office, Defense Criminal Investigative Service, said, "In partnership with other law enforcement agencies, the Defense Criminal Investigative Service aggressively pursues all allegations of fraud and corruption impacting the Department of Defense and our warfighting mission, to ensure that American taxpayer dollars are not wasted or stolen.”
“The prosecution of individuals who manipulate normal business transactions in an effort to enrich themselves has always been a priority of IRS and our law enforcement partners”, stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “We are proud to have contributed our financial expertise in order to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
“This case is an excellent example of federal and state law enforcement working together to fight corruption,” said Vernon M. Keenan, Director of the Georgia Bureau of Investigation.
Interim Inspector General Deb Wallace of the State of Georgia Office of Inspector General said, “Our office is dedicated to strengthening the trust between the citizens of Georgia and their public officials by continuously pursuing fraud, waste, abuse and corruption within the executive branch of state government. We would like to thank and recognize the Georgia Department of Defense for its vigilance and willingness to report irregularities within its contracting process. We appreciate the many investigative agencies who assisted on this case through countless hours of hard work to bring it to resolution.”
According to United States Attorney Yates, the charges and other information presented in court: From May 2007 through April 2012, Elliott worked for the Georgia Department of Defense, the state agency charged with coordinating and supervising all agencies and functions of the Ga. National Guard. Elliott worked as an Engineering Operations Manager out of the Clay National Guard Center, located at Dobbins Air Reserve Base, in Marietta, Ga. In that position, Elliott worked with engineering firms to develop bid-ready construction projects, prepared bid documents, and oversaw no-bid purchase orders. Under the rules governing the contracting process that Elliott oversaw, projects that cost less than $5,000 did not need to go through a competitive bidding process, allowing Elliott to award the contracts. She then certified that the work had been completed for those projects, and facilitated payment to the vendors who allegedly completed such projects.
In that position, Elliott awarded numerous contracts under $5,000 to vendor companies created by her friends and associates, including co-defendant Lakeysha Ellis. In return, the friends and associates paid Elliott kickbacks, equal to 50% of the value of the contracts, for steering the contracts to them. Elliott falsely certified that work had been completed when, in fact, it had not been in order to facilitate payment. One of the vendor companies was Total Source Solution, LLC, owned by co-defendant Ellis. Elliott awarded Total Source Solution 17 contracts with a total value of approximately $75,000. Those contracts were for a variety of services supposedly to be performed by Total Source Solution, including electrical work, landscaping, and HVAC work. But the work was never done. Instead, the defendants split the money awarded under these contracts and spent it on personal items, including travel, meals, merchandise, and even liposuction treatment for Ellis. As part of the scheme, Elliott owned a company named Tech Group Investments, LLC. Ellis took money she had obtained from the Georgia Department of Defense contracts, and paid kickbacks to Elliott through this company.
The indictment also alleges that Ellis and Elliott conducted a similar fraud scheme from January 2009, through May 2011, when Ellis was an accountant at Baumueller-Nuermont Corporation, an industrial equipment company with offices in Atlanta. Her job responsibilities included payroll and paying vendors.
While employed as Baumueller-Nuermont’s accountant, Ellis fraudulently funneled money to the defendants’ two sham companies, Total Source Solution and Tech Group Investments. Ellis wrote corporate checks to Total Source Solution, signed her name on the checks, and forged the signature of the Vice President on the checks, to ensure that the checks could be negotiated. Ellis recorded these payments in the check registry to reflect falsely that the checks had been issued to true vendors (such as American Express) when in fact they went to Ellis’ company.
As part of the scheme, Ellis also falsified employee records in the corporation’s payroll system to disguise payments to the defendants’ two companies. Ellis created at least two phantom employees by altering the names of real employees (by switching their first and last names) and slightly changing their Social Security numbers. She then caused the payroll system to make fraudulent salary payments to Total Source Solution and Tech Group Investments for these new, non-existent employees.
Baumueller-Nuermont lost about $85,000 from this scheme.
The ten count indictment charges Elliott, 33, and Ellis, 36, both of Atlanta, Ga., with two counts of conspiracy and seven counts of wire fraud. Elliott is also charged with accepting a bribe or kickback as a public official.
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; the Georgia Bureau of Investigation; the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service; Internal Revenue Service Criminal Investigation; the U.S. Army Criminal Investigation Command; and Deputy Inspectors General of the State of Georgia Office of the Inspector General.
Assistant United States Attorney Stephen H. McClain is 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 Executive Director of Taos County Housing Authority Sentenced to Thirty Months in Prison for Conspiracy to Steal Federal FundsRead the Press Release
ALBUQUERQUE – Earlier today a federal judge sentenced the former executive director of the Taos County Housing Authority (TCHA) and her husband to prison terms for conspiring to steal federal funds. The couple also was ordered jointly to pay $786,014.04 in restitution. Carmella Martinez, 42, of Arroyo Seco, N.M., was sentenced to 30 months in federal prison and her husband Paul G. Martinez, 44, was sentenced to 24 months of imprisonment. Each will serve a two-year term of supervised release when released from custody.
The sentences were announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Phyllis Grissom Robinson, Region 6, U.S. Department of Housing and Urban Development (HUD) Office of Inspector General, and Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI.
Carmella and Paul Martinez were charged in Dec. 2012 in a 49-count federal indictment with conspiracy, theft from programs receiving federal funds, and theft of government property. The indictment alleged that between Nov. 2003 and Dec. 2011, Carmella and Paul Martinez stole federal funds provided by HUD to the TCHA for a housing program that provides affordable housing for low-income Americans. During that time, Carmella Martinez was employed by the TCHA, initially as a Financial Specialist and later as its Executive Director.
HUD is a federal agency with a core mission to make quality, affordable housing accessible to all Americans. It oversees and funds programs designed to provide affordable housing to low-income Americans, including the Housing Choice Voucher Program which is commonly referred to as “Section 8.” Through the Section 8 Program, HUD pays rent subsidies known as “Housing Assistance Payments” (HAP) to approved property owners and landlords on behalf of eligible low-income beneficiaries. The TCHA administers the Section 8 Program on behalf of HUD in Taos County and receives approximately $2.8 million in funds annually from HUD.
According to the indictment, while employed by the TCHA, Carmella Martinez was responsible for processing HAP checks to approved Section 8 property owners and landlords and providing preliminary approval of requests for rent subsidies to property owners and landlords under the Section 8 Program. She abused her position with TCHA by conspiring with her husband to engage in the theft of Section 8 housing funds. Carmella Martinez stole the money by issuing fraudulent HAP checks for Section 8 housing assistance to payees, including to Paul Martinez and to bank accounts held by her and Paul Martinez. Carmella and Paul Martinez then presented the fraudulent checks for payment at various locations.
The couple pled guilty in Aug. 2013, to Count 1 of the indictment charging them with conspiracy to commit theft concerning programs receiving federal funds and to commit theft of government property. In her plea agreement, Carmella Martinez admitted that she began issuing fraudulent, duplicate Section 8 HAP checks for the benefit of herself and her husband in 2000, and that her husband began conspiring with her to steal federal funds from the TCHA in 2003. Carmella Martinez admitted that she and her husband engaged in their unlawful scheme until Dec. 2011, when they learned they were the subjects of a criminal investigation, and that she and her husband stole at least $786,014.04 in federal funds through their unlawful scheme.
In his plea agreement, Paul Martinez admitted that he began conspiring with his wife to steal funds from TCHA, a program that receives federal funds, in 2003, and that their scheme continued until Dec. 2011, when they learned about the criminal investigation that led to the indictment against them.
As required by the plea agreements, the United States moved to dismiss the remaining 48 counts of the indictment after Carmella and Paul Martinez have been sentenced.
Special Agent in Charge Phyllis Grissom Robinson of Region 6 of HUD’s Office of Inspector General said “The sentence imposed against Ms. Martinez and her husband should send a strong message that the United States Department of Housing and Urban Development, Office of Inspector General will aggressively investigate those who fail to exercise integrity in connection with HUD programs, the end result will be both unpleasant and costly to the offending party.”
“For many low-income people in New Mexico, government rent assistance can mean the difference between having a roof over their heads or being homeless. Stealing from these programs is like taking money out of the pockets of those who need it the most,” said Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division. “The FBI will continue to work with our partners to make sure this kind of crime is aggressively investigated and the guilty parties brought to justice. I thank the FBI Special Agents who worked on this case, along with the U.S. Department of Housing and Urban Development Office of Inspector General and the U.S. Attorney's Office.”
Acting U.S. Attorney Steven C. Yarbrough commended the HUD Office of Inspector General, the Albuquerque Division of the FBI and Assistant U.S. Attorney Shana B. Long for their work on the case.Former Deputy Sheriff Sentenced to 25 Years in Prison for Child ExploitationRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO – Dustin Hensley, 30, of Springfield, Ohio was sentenced to 300 months in prison for producing, distributing and possessing child pornography. Hensley was a deputy sheriff in Clark County, Ohio until he was arrested on the child exploitation charges.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), Clark County Sheriff Gene Kelly, Clark County Prosecutor D. Andrew Wilson, and members of the Franklin County Internet Crimes Against Children Task Force announced the sentence imposed today by U.S. District Judge Timothy S. Black.
According to court documents, Hensley produced a sexually explicit video involving a minor earlier this year. He also distributed or attempted to distribute one or more visual depictions of a minor engaging in sexually explicit conduct, and knowingly possessed images of child pornography. FBI agents and Clark County deputies arrested Hensley in July 2013. Hensley pleaded guilty on November 7, 2013 to one count each of production of child pornography, distribution of child pornography, and possession of child pornography.
Hensley was also sentenced to ten years of supervised release to be served following his prison term. During that time, he will be subject to various conditions, including restrictions and/or prohibitions of his computer usage, installation of monitoring software on any of his computers, prohibitions on his possession of obscenity in any form, participation in recommended treatment programs, and complete disclosure of any contact with minor children. If he violates one or more of the conditions of any supervised release imposed, he may be returned to prison for all or part of the term of supervised release.
The Sex Offender Registration and Notification Act requires that Hensley register as a sex offender following his prison term and keep his registration current anywhere that he lives, works or goes to school. He must update his registration no later than three business days after any change of his residence, employment, or student status.
This case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims.
U.S. Attorney Stewart commended the investigation by the FBI, Clark County Sheriff, Clark County Prosecutor and the Franklin County ICAC, as well as Assistant U.S. Attorney Alex R. Sistla, who is prosecuting the case on behalf of the United States, and Assistant Clark County Prosecutor Amy M. Smith, who is prosecuting Mr. Hensley on state charges.Forest Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
Jackson, Miss - Arthur Wayne Townsend, 56, of Forest, Mississippi, pled guilty in federal court today to possession with intent to distribute methamphetamine, announced U.S. Attorney Gregory K. Davis. Townsend will be sentenced by U.S. District Judge Carlton W. Reeves on April 25, 2014 and faces a maximum penalty of 20 years in federal prison and a $1 million fine.
The indictment in this case was the result of an extensive investigation, dubbed “Operation Brusha” targeting illegal narcotics distribution in Scott County, Mississippi. The investigation was conducted by the Mississippi Bureau of Narcotics, the Bureau of Alcohol, Tobacco Firearms and Explosives and Homeland Security Investigations. Assisting agencies included the Mississippi Highway Patrol, Mississippi Bureau of Investigation, Forest Police Department, and Scott County Sheriff’s Department. The case was prosecuted by Assistant U.S. Attorney Erin O. Chalk.
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Our nation-wide commitment to reducing gun crime in America.
Eight Overtown Residents Indicted on Drug Conspiracy and Distribution ChargesRead the Press Release
Indictment Stems from USAO’s Overtown Violence Reduction Partnership
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Manuel Orosa, Chief, City of Miami Police Department, announce the indictment of eight individuals for their alleged participation in various heroin, cocaine, crack cocaine, and marijuana distribution conspiracies.
This indictment is, in large part, the result of the Overtown Violence Reduction Partnership, launched by the U.S. Attorney’s Office in October 2011. To date, 46 individuals have been charged in federal court as a result of this initiative. Of those charged, 27 individuals, including the eight charged in the present indictment, are career offenders under the Sentencing Guidelines or Armed Career Criminals under the Armed Career Criminal Act. Through the Partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks in the Overtown neighborhood, while simultaneously working with community leaders and concerned citizens to mentor at-risk youths, provide jobs and job training to young families, and help probationers and parolees successfully re-enter society.
The 19-count indictment, returned on January 10, 2014, and unsealed yesterday, charges the defendants with conspiracy to possess controlled substances with the intent to distribute, in violation of Title 21, United States Code, Section 846 (Counts 1, 10, and 13); and possession of controlled substances with the intent to distribute, in violation of Title 21, United States Code, Section 841(a)(1) (Counts 2-9, 11, 12, and 14-19). The indictment charges the following eight individuals:
Travis Lamont Smith, 29, of Overtown; Christopher Thomas Smith, 28, of Overtown; Tremayne Lemont Whigham, 33, of Overtown; Raymond Murray Scott, 23, of Overtown; Joshwa Brown, 35, of Overtown; Gregory Allen Blue, 29, of Overtown; Carl Earnest Hurd, 34, of Overtown; and
Quentin K. Tracy, 25, of Overtown.Seven of the eight defendants have been arrested and are expected to make their initial appearances in front of U.S. Magistrate Judge Patrick M. Hunt today, January 16, 2014 at 11:00 a.m. Quentin K. Tracy remains at large.
U.S. Attorney Wifredo A. Ferrer stated, “These arrests reflect the joint commitment of federal and local law enforcement professionals to the Overtown Violence Reduction Partnership. The goal of the Partnership is to leverage resources to help one of Miami’s most historic neighborhoods shake off the cycle of violence that has tormented it for years and return to its prior prominence. Enforcement of federal criminal statutes is an integral component of our holistic approach to community building. But we cannot arrest our way out of the violence that has gripped Overtown for decades. To that end, our Partnership also focuses on community-partnering, crime prevention, and reentry assistance for offenders attempting to put their pasts behind them and build healthy, productive lives in our community. The results of this investigation clearly illustrate that we remain committed to this comprehensive approach.”
“Drugs and the armed gangs who peddle them have a devastating effect on our communities,” said Michael B. Steinbach, Special Agent in Charge of FBI Miami. “This case is part of the Overtown Violence Reduction Initiative which targets areas most stricken by gang activity within Dade County. The FBI and its partners will continue to pursue and dismantle these violent gangs.”
If convicted, the defendants face a possible statutory maximum sentence of up to twenty years in prison.
Mr. Ferrer commended the investigative efforts of the FBI, City of Miami Police Department, and ATF. This case is being prosecuted by Assistant U.S. Attorneys Roy Altman and Jonathan Kobrinski.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty.
Attachment:
Wanted-Red Flag (PDF)
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Dominican Man Sentenced for Repeated Illegal ReentryRead the Press Release
BOSTON – A Dominican man was sentenced today for illegally reentering the United States for the third time.
Luis Erasmo Carmona-Avalo, 42, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 30 months in prison. In October 2013, Carmona-Avalo pleaded guilty to illegal reentry by a deported alien.
At the sentencing hearing, Chief Judge Saris explained that the sentence reflected Carmona-Avalo’s history of immigration and drug crimes. In 1997, Carmona-Avalo, a citizen of the Dominican Republic, first came to the United States. In 2003, he pleaded guilty to heroin distribution in Massachusetts state court and was removed to the Dominican Republic. Carmona-Avalo then reentered the United States. In 2006, he was arrested on drug charges in Massachusetts and was removed to the Dominican Republic again.
In March 2007, Carmona-Avalo reentered the United States. In July 2007, he pleaded guilty to illegal reentry in the U.S. District Court for the Southern District of Texas, and was sentenced to 10 months in prison. In April 2008, he was removed for the third time to the Dominican Republic. In November 2011, having reentered the United States again without permission, Carmona-Avalo was arrested in Massachusetts for drug distribution. He was ultimately convicted and sentenced on the drug charges.
United States Attorney Carmen M. Ortiz and Sean Gallagher, Field Office Director of the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations Office in Boston, made the announcement today. The case was prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
District Woman Sentenced to 6 ½ Years in Prison for Shooting at Northwest Washington Restaurant-Defendant Shot Victim Once in the Chest-Read the Press Release
WASHINGTON – Lashawn Carson, 29, of Washington, D.C., was sentenced today to a total of 6 ½ years in prison on charges stemming from a shooting at a Northwest Washington restaurant, U.S. Attorney Ronald C. Machen Jr. announced.
Carson was found guilty by a jury in October 2013, following a trial in the Superior Court of the District of Columbia, of aggravated assault while armed and related firearms offenses. She was sentenced by the Honorable Michael Ryan. Upon completion of her prison term, Carson will be placed on three years of supervised release.
According to the government’s evidence, at 5:30 a.m. on March 11, 2012, two groups of friends were eating at the IHOP restaurant in the 3100 block of 14th Street NW. The victim’s group of friends was seated at one table and Carson’s group was at another.
As the victim was attempting to walk to the cash register to pay his bill, Carson and a male friend inadvertently stood directly in his way. The victim attempted to squeeze by and accidently bumped into Carson. Words were exchanged, and the defendant’s male friend used a homophobic slur. A fight ensued, and an off-duty police detective, who was seated nearby, jumped up to break it up. At that point, according to the government’s evidence, Carson walked over, adjusted her hair, pulled out a firearm and shot the victim once in the chest.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation to those who handled the case for the U.S. Attorney’s Office, including Supervisory Litigation Technology Specialist Joe Calvarese; Assistant U.S. Attorneys Andrew Finkelman and Lauren Dickie, who investigated the case, and Assistant U.S. Attorney Nicholas Cannon, who investigated the case and prosecuted it at trial.
14-012District Man Found Guilty of Federal Charges in Pair of Bank Robberies in Downtown Washington-Defendant Held up Two Banks on the Same Day-Read the Press Release
WASHINGTON – Clyde Lacy Rattler, 56, of Washington, D.C., was found guilty by a jury today of two counts of bank robbery stemming from a pair of hold-ups committed in downtown Washington on the same day, announced 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 verdict followed a trial in the U.S. District Court for the District of Columbia. Rattler will be sentenced by the Honorable Ketanji Brown Jackson, on April 8, 2014. He faces up to 20 years in prison. The Court ordered that he be held without bond pending his sentencing. In 2005, Rattler was convicted of three bank robberies and one attempted bank robbery.
According to the government's evidence, on Friday, Aug. 2, 2013, at about 10 a.m., Rattler approached the teller station at United Bank, in the 1600 block of K Street NW, and told the teller that he had a gun and wanted money in large denominations. The teller gave Rattler multiple clips of $100 and $50 bills, and he exited the bank. The loss to the bank was later determined to be $1,650.
Later the same day, at about 5 p.m., Rattler approached the teller station at the TD Bank, in the 1000 block of 15th Street NW. He told the teller he had a gun and a bomb, and he wanted money in large denominations. The teller gave him money, and he exited the bank. The loss to the bank was later determined to be $1,141.
A news report describing the robberies aired on a local television station, including bank surveillance footage. After seeing a news report, several persons, including two law enforcement officers, called the FBI, and Rattler was identified as the perpetrator of the robberies.
In announcing the guilty verdicts, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Chief Lanier commended the actions of those who investigated the robberies for the FBI and MPD. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Candace Battle and Legal Assistant Tammy Scott. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Emory V. Cole, who investigated and prosecuted the case.
14-014Detroit Man Enters Guilty Plea to Federal Drug ChargeRead the Press Release
Defendant Kermit Ware III charged as part of Charleston’s West Side Drug Market Intervention initiative
CHARLESTON, W.Va. – A Detroit man who used a cell phone to commit a drug crime in July 2013 entered a guilty plea in Charleston federal court today, U.S. Attorney Booth Goodwin announced. On July 10, 2013, Kermit Ware, III, used his cell phone to facilitate an illegal heroin transaction. Ware, 25, pleaded guilty today before United States District Court Judge John T. Copenhaver, Jr.
Ware is scheduled to be sentenced on April 14, 2014. The defendant is being prosecuted as part of the Charleston area’s Drug Market Intervention (DMI) initiative. Ware was designated a member of the DMI A-list, which comprises the most serious offenders identified in the initiative.
The Kanawha Bureau of Investigation and the Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Joshua Hanks is in charge of the prosecution.
The DMI initiative was launched in February 2012 by U.S. Attorney Booth Goodwin and Charleston Police Chief Brent Webster, in collaboration with other federal, state, local law enforcement agencies and leaders representing several West Side community development organizations. A continuation of the DMI initiative was announced last month in Charleston.
Over the past several months, the Charleston Police Department and other law enforcement agencies have conducted undercover operations and completed investigations culminating in federal charges being filed against thirteen individuals.
Drug Market Intervention, first implemented in High Point, North Carolina, and replicated with success in several other cities, including Huntington, W.Va., is a strategic problem-solving initiative aimed at closing down drug markets that breed crimes of violence and disorder.
The DMI strategy also included a staged community intervention that was held in December 2013 at New Covenant Missionary Baptist Church on Charleston’s West Side. The community intervention meeting offered a rare second chance for five low-level, non-violent offenders to end their criminal activity and avoid being prosecuted, if they obey a set of strict guidelines established by law enforcement. The Dec. 12, 2013 community intervention call-in meeting was attended by offenders’ relatives, concerned citizens, and faith-based leaders from the West Side community. The call-in meeting was organized and attended by federal, state and local law enforcement officials.
Citrus Heights Man Sentenced to 15 Years in Prison for Attempted Enticement of A MinorRead the Press Release
SACRAMENTO, Calif. — James Anthony Demotto, 31, of Citrus Heights, was sentenced today by United States District Judge Troy L. Nunley to 15 years and eight months in prison, to be followed by 20 years of supervised release, for attempted enticement of a minor, United States Attorney Benjamin B. Wagner announced.
According to the plea agreement, in May 2012, Demotto began communicating online with an undercover officer in Massachusetts who was posing as a 13-year-old girl. Within several minutes of chatting online, Demotto propositioned her to engage in online sexual conduct and to take photographs of herself.
By January 2013, Demotto engaged in Internet conversations of a sexual nature with two other undercover agents who were posing as under-aged girls. He repeatedly asked for sexually explicit pictures from the “girls.”
When law enforcement searched Demotto’s computer, they found evidence that he had been communicating with actual minors and had received sexually explicit pictures from them. There was also evidence that he had been searching for and downloaded images of child pornography from the Internet. A clown mask was located in his bedroom.
In sentencing Demotto, Judge Nunley expressed concerns about the number of victims in this case. In addition, Judge Nunley noted that Demotto had made attempts to meet with a fictional victim, driving down the street that he believed she lived on, and asking her in one online conversation if she “had seen someone in a clown outfit driving around [her] neighborhood?”
“This clearly illustrates why the FBI is committed to identifying and investigating individuals who seek to rob our children of their innocence,” said Special Agent in Charge Monica M. Miller of the FBI’s Sacramento Division. “Any images obtained by Mr. Demotto would likely have been traded among other offenders for years. I am proud of the efforts of our task force and the network of investigators who work tirelessly to identify and investigate individuals who seek to do harm to our innocent children.”
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Kyle Reardon prosecuted the case.
This prosecution is part of the Department of Justice’s ongoing Project Safe Childhood initiative which was launched to increase federal prosecutions of sexual predators of children, and to reduce the number of Internet crimes against children including child pornography trafficking. As a part of PSC, the United States Attorney’s Office has teamed with state and local agencies and organizations to increase law enforcement presence on the Internet, and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For additional information on the PSC initiative, please go to www.projectsafechildhood.gov coordinator.
Child Sex Trafficker Keith “Greedy” Gibson Convicted on All CountsRead the Press Release
Memphis, TN – A federal jury in Memphis has convicted Keith Gibson, a/k/a “Greedy,” 44, of Memphis, on four charges relating to child sex trafficking announced U.S. Attorney Edward L. Stanton III, and Special Agent in Charge Todd McCall of the Federal Bureau of Investigation's Memphis Field Office.
Gibson was found guilty of child sex trafficking and conspiracy to commit child sex trafficking for his role in the exploitation of a 14-year-old girl. He was also found guilty of two counts of false statements in relation to a child sex trafficking investigation for his subsequent efforts to cover up the crime.
Gibson faces a mandatory sentence of at least ten years in prison and faces a maximum sentence of life imprisonment. He will be sentenced on April 30, 2014, by U.S. District Judge Jon Phipps McCalla. Gibson’s co-defendants, Tony Grandberry, Orreco Lyons a/k/a “Pico the Pimp,” Vivian Briggs a/k/a “Fortune,” Tamara Ramsey, and Falisha Edwards all pled guilty prior to trial. Grandberry received 11 years imprisonment followed by 10 years supervised release on October 30, 2013. Briggs received 4 years imprisonment and 3 years supervised release on November 14, 2013. Lyons received 7 years imprisonment and 7 years supervised release on December 16, 2013. Ramsey and Edwards are scheduled to be sentenced later this month.
The evidence at trial showed, among other things, that Gibson provided payment and contact information for an advertisement on Backpage.com offering the 14-year-old for prostitution. The jury heard from multiple people who were present with Gibson on January 1, 2013, when he provided the payment and contact information for the ad. The jury also heard from the 14-year-old victim, who testified that Gibson had talked about being her pimp and posting her to Backpage.com. She also testified that she lied about how old she was and that Gibson did not believe her and repeatedly questioned her age.
The jury saw a notebook recovered from Gibson’s car which included letters written by Gibson bragging that he “went back to what I’m famous for (Pimpin)” and was “getting pimp money.” The evidence also included the credit card used to pay for the advertisement, which had been on Gibson’s person when he was arrested.
The jury also heard from several FBI agents who testified regarding the lies Gibson told them after he was arrested. Two FBI agents also testified that when they arrested Gibson, his laptop computer was open to Backpage.com.
Protecting our children is one of society’s highest callings,” said U.S. Attorney Stanton. “When dangerous people look to fatten their wallets through the sexual exploitation of vulnerable young victims, the United States of America will not hesitate to bring them to justice."
“No child deserves to suffer the exploitation and abuse by “pimps” who prey on and destroy the lives of the most vulnerable in our community,” said Special Agent in Charge McCall. “Those who exploit their victims for profit should know the FBI and our law enforcement partners are committed to investigating allegations of sex trafficking, and are working to ensure that they face justice and are held accountable for their abominable criminal conduct.”
The case was investigated by the Federal Bureau of Investigation working with the Memphis Police Department and the United States Secret Service. Jaime Corman and Anthony Householder of the FBI led the investigation. The case was prosecuted by Assistant U.S. Attorney Jonathan Skrmetti and Assistant U.S. Attorney Mark Erskine.
U.S. Attorney Edward L. Stanton III established the Civil Rights Unit in February 2011 to ensure that every individual in the Western District of Tennessee enjoys the rights and freedoms guaranteed by the Constitution of the United States. The Civil Rights Unit assigns dedicated prosecutors to pursue the full spectrum of federal civil rights crimes, including official misconduct, human trafficking, and hate crimes, as well as law enforcement public corruption cases. Since the formation of the Civil Rights Unit, the Western District of Tennessee has consistently ranked as one of the top U.S. Attorney's Offices in the country for the prosecution of sex trafficking.Chicago Man Admits Mailing Scores of Threats, Including to Police Officers and Families After Cougar Was Killed in 2008Read the Press Release
CHICAGO — Following a lengthy investigation by the FBI-led Chicago Joint Terrorism Task Force, a Chicago man admitted today in Federal Court that he mailed more than 90 threatening and/or harassing letters to Chicago police officers, other government and law enforcement officials, private individuals, schools, and religious institutions in the Chicago area between November 2003 and December 2012.
The defendant, RICHARD D. HYERCZYK, 54, of Chicago’s Garfield Ridge neighborhood, pleaded guilty to one count of mailing a threatening communication at his arraignment after being charged in a criminal information filed last week in U.S. District Court. Hyerczyk was released on his own recognizance after prosecutors said he had been cooperative in the investigation and was not believed to be a danger to the community or a risk of flight.
Hyerczyk faces a maximum sentence of five years in prison and a $250,000 fine, and his plea agreement anticipates an advisory federal sentencing guideline range of 33 to 41 months in prison. U.S. District Judge Gary Feinerman set sentencing for April 11.
Hyerczyk pleaded guilty to mailing a letter on April 21, 2008, that threatened to kill Chicago Police Department officers and members of their families. That letter followed local news media reports on April 15, 2008, that Chicago police officers had shot and killed a cougar that was located on the city’s north side. Hyerczyk admitted that he drafted letters containing threats to kill and commit violence against CPD officers and members of their families.
The plea agreement details one such letter, which began with the salutation, “Dear Cougar Killers (aka Chicago PIG Police),” and included the following threatening messages: “Prepare to DIE like the Cougar you killed. On May 4th at your St. Jude Memorial March several PIGS will be shot by snipers.”; “BURN down the Daley house in Michigan.”; and “Kill any Police Officer, where ever they are found, like they killed the Cougar.”
Hyerczyk admitted that he drafted a second letter, which contained a title that referenced a severely injured former Chicago police officer by name and referred to the officer as the “PARALIZED [sic] PIG,” and which title contained the phrase “St. Jude Memorial PIG March.” This second letter threatened that: “A police officer will be SHOT DEAD, like they shot the cougar, at the May 4th St. Jude Memorial PIG March.”; “A celebration of DEAD police officers. Ha ha ha ha you are all better off DEAD.”; and “When the PIGS are at the parade, we will be at their homes. You can=t guard every PIGS house...watch your young children.”
After drafting these letters, Hyerczyk printed multiple copies of each and placed them into envelopes bearing first class postage and addressed to, among others: a university in Orland Park; the same university’s office of graduate studies in Chicago; the same university’s English Department in Chicago; and a Chicago Police officer and executive officer of a Fraternal Order of Police lodge in Chicago.
In pleading guilty, Hyerczyk admitted that he mailed these letters knowing and intending that they would be interpreted as threatening by the intended victims, including Chicago Police officers and their families.
The Chicago Joint Terrorism Task Force began investigating the threatening letters in this case after they were first received in 2003. Diligent investigation by agents resulted in a federal search warrant being executed on Hyerczyk’s residence and automobile, as well as for his DNA, in January 2013. The JTTF is composed of special agents of the FBI, officers of the Chicago Police Department, and representatives from an additional 20 federal, state, and local law enforcement agencies.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is being represented by Assistant U.S. Attorneys Christopher Veatch and Steven Dollear.
Plea Agreement
InformationCheck Casher Sentenced to Jail for Involvement in Fraudulent Tax Refund SchemeRead the Press Release
David Haigler of Montgomery County, Ala., was sentenced today to serve 37 months in federal prison for his involvement in a stolen identity tax refund fraud scheme, Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division, U.S. Attorney George L. Beck Jr. for the Middle District of Alabama and the Internal Revenue Service (IRS) announced today. Haigler was also ordered to serve three years of supervised release and to pay restitution to the IRS in the amount of $606,781. Haigler previously pleaded guilty in the U.S. District Court for the Middle District of Alabama on Sept. 6, 2013.
According to court documents, between November 2011 and July 2012, Haigler obtained 263 fraudulent U.S. Treasury refund checks and Refund Anticipation Loan checks totaling $606,781. The refund checks were in the names of different individuals and those individuals did not authorize Haigler to cash the checks. Haigler obtained fictitious powers of attorney in the names of the individuals on the checks, which purportedly appointed Haigler to handle financial affairs, including the cashing of checks. Haigler cashed all of the fraudulent refund checks at a store in Millbrook, Ala., and provided the store with copies of the ficticious powers of attorney. Haigler retained a portion of the checks and provided the remainder to the individuals who brought him the fraudulent checks.
This case was investigated by special agents of the IRS - Criminal Investigation and the U.S. Secret Service. Trial Attorneys Michael Boteler and Jason Poole of the Tax Division and Assistant U.S. Attorney Todd Brown prosecuted the case.
Additional information about the Justice Department's Tax Division and its enforcement efforts may be found at www.justice.gov/tax
Charlotte B. New Breast First of the Poka Defendants Given ProbationRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on January 16, 2014, before U.S. District Judge Brian M. Morris, CHARLOTTE B. NEW BREAST, 53, of Browning, was sentenced to a term of three years probation, $50,000 in restitution, and a special assessment of $100.
New Breast was sentenced in connection with her October 21, 2013, guilty plea to Theft from an Indian Tribal Government Receiving Federal Grant Funds. New Breast was one of six defendants charged in the multi-million dollar scheme to embezzle federal grant funds from a program for troubled youth on the Blackfeet Reservation known as the Po'Ka Project.
In an Offer of Proof filed by Assistant U.S. Attorney Carl Rostad, the government stated it would have proved that The Blackfeet Po'ka Project was developed to help troubled Native American youth. Po'ka received its funding from the Substance Abuse and Mental Health Services Administration (SAMHSA) of the Department of Health and Human Services. Beginning in 2005 with a $1,000,000 federal disbursement, the grant ultimately became a $9.3 million program over a six year period (2005-2011). The funding arc started with the $1,000,000 award, rose to $2,000,000 per year for two years (2007, 2008) and then tapered off to $1,000,000 in 2010 and $300,000 in 2011.
According to the SAMHSA grant synopsis, the Po'Ka Project-also known as Blackfeet Children System of Care-was a reservation-wide children's mental health system. The project goals were to (1) to implement the systems of care philosophy at the local Tribal level; (2) to identify, plan for, or enhance coordination and facilitate a wraparound process enabling children with SED (Severe Emotional Disorders) and their families to access services to meet their needs.
Francis Onstad was the Director of Po'Ka and Delyle Shanny Augare was the Assistant Director. Charlotte New Breast was the Administrative Assistant.
THE IN-KIND CONTRIBUTION REQUIREMENT
It was the stated intent and proposition from the Tribe that the Po'Ka Project would ultimately become self-sufficient; a completely tribal program-entirely supported by the Tribe-by the end of the grant period. The grant required that the Tribe provide a certain amount of funding. A requirement contained in certain legislation, regulations, or administrative policies that a recipient must maintain a specified level of financial effort in the health area for which Federal funds will be provided in order to receive Federal grant funds. To achieve the goal of final self-sufficiency, the Tribe was required to provide in-kind matching contributions to continue to secure federal payments with the idea that as federal participation declined, tribal participation would rise to fill the funding void left by the absence of federal funds. It was the intent of the parties and SAMHSA that the Po'Ka Project would survive on its own once federal funding was no longer forthcoming.
An in-kind contribution is a non cash contribution provided by nonfederal third parties in support of the project funded by the grant, and its objectives. Third party in kind contributions may be in the form of real property, equipment, supplies and other expendable property, and the value of goods and services directly benefitting and specifically identifiable to the project or program.
As noted, a key component of the grant award was the funding arc; the ratio of federal money to in-kind contributions. Only if Po'Ka met the in-kind contribution targets could they receive the maximum amount of federal money from the grant. Consistent with the sustainability objective of the grant, the Tribe's in-kind contribution requirement was the highest in the later years of the grant. The Blackfeet Tribe was required to provide $7.0 million of in kind contributions from FYs 2009 through 2011. That created an environment where the appearance of substantial in-kind contributions became paramount. However, the in-kind commitment could never be honestly met, so the conspirators (Onstad, Augare, and others) began making up facts and documents to try and satisfy auditors that the in-kind contributions represented on their reports to SAMSHA were legitimate. They did so by inflating the figures related to in-kind contributions, assigning values to non-existent and illegitimate contributions, and manufacturing fraudulent invoices and records to support fictional or inflated contributions. The misrepresentations as to in-kind amounts were made in monthly reports to SAMSHA and the documents were generated to placate auditors conducting a required annual audit of the Tribe's operations.
Several people whose names were used as in-kind contributors, denied preparing or signing the invoice and denied contributing time or goods to the Po'Ka project, at least in the amount claimed. Invoices were presented to auditors which purported to represent the provision and creation of Blackfeet Story Telling CDs, and other in kind contributions of service by Floyd Heavy Runner in July 2010 and August 2010, even though Heavy Runner had suffered a massive and debilitating stroke in May 2010 and was incapable of providing services of any kind to the Po'Ka Project in July and August of that year. In another important email exchange, on March 21, 2011, In-Kind Coordinator and co-defendant Elizabeth Sherman requested that a social worker from Shelby sign 8 invoices reflecting thousands of dollars in in-kind contributions. That witness replied "I cannot do it because I did not do the work. I value my name and professional integrety (sic) and will not sign a document stipulating work I did not do, donated or otherwise." One person was credited for an in-kind contribution of over $350,000. She denied doing that amount of work, producing all of the binders identified on the invoice, denied preparing the invoice and denied signing the invoice. She said the figure appeared to come from a conversation that she had with Francis Onstad a year earlier when Onstad asked what it would cost the tribe to train every tribal employee in health care regulations.
The Blackfeet Tribe claimed $440,000 in in kind contributions related to professional services provided by a Certified Public Accountant (CPA) who gave audit assistance to the Po'Ka Project. When interviewed, the CPA determined that he (1) charged the Blackfeet Tribe for the time he spent providing audit assistance and (2) was unaware that the Tribe claimed his costs as in kind contributions.
Po'Ka also claimed $92,000 in in kind contributions for planning services which, according to the Tribe, were provided by the staff of one of Montana's United States Senators. The Chief of Staff indicated that no one in the Senator's offices in D.C. or Montana had even heard of the Po'Ka project.
During the period of the grant, Onstad and Augare did a significant amount of traveling paid for with Po'Ka funds, ostensibly to conferences and related events. Onstad and Augare had New Breast download hotel receipts and portions of hotel receipts so that receipts in higher amounts could be created and used to obtain greater reimbursement for travel than that amount actually expended. This happened regularly and cut-and-paste receipts were found attached to a New Breast email. The name on the receipt was Francis Onstad.
In a sentencing memorandum, Rostad told the Court that New Breast was the least culpable defendant and received nothing from the scheme other than a few miscellaneous benefits and continued employment. Rostad advised the Court that New Breast had cooperated with the investigation and agreed to provide significant information that would assist in the prosecution of others involved with Po'Ka which entitled her to a motion from the government that made a probationary sentence under the advisory sentencing guidelines a possibility. The prosecutor said that but for her assistance and her minimal role the United States would have sought jail time. But for those factors, New Breast should "should have taken her rightful place in line for the consequences of accountability; a line that would have included incarceration under the guidelines.
This case was brought by the Federal Bureau of Investigation with the assistance of Department of Health and Human Services Office of Inspector General and the Internal Revenue Service Criminal Investigation Division as part of the Guardians Project.
Charleston Man Sentenced to 5 Years in Federal Prison for Illegal Possession of A PistolRead the Press Release
CHARLESTON, W.Va. – A Charleston felon who illegally possessed a firearm and ammunition in July 2012 was sentenced today to five years in federal prison, announced U.S. Attorney Booth Goodwin. Thirty-three-year-old Marcus J. Kenner, also known as “Cheese,” previously pleaded guilty in September 2013 to being a felon in possession of a firearm. The sentence was handed down by United States District Court Judge John T. Copenhaver, Jr. in Charleston.
On July 14, 2012, Kenner possessed a 9-millimeter pistol and ammunition in Charleston. Kenner was previously convicted in January 2006 of possession with intent to deliver a controlled substance in the Circuit Court of Kanawha County. The defendant did not have his rights to possess a firearm restored.
The investigation was conducted by the Charleston Police Department. Assistant United States Attorney John Frail handled the prosecution.
This case was prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Cape Cod Man Facing Child Pornography ChargesRead the Press Release
BOSTON – At a detention hearing in U.S. District Court in Boston today, a magistrate judge ordered a Cape Cod man, facing child pornography charges, held until further notice.
Adam Polakowski, 45, of West Yarmouth, is charged in a criminal complaint with distribution and possession of child pornography. Polakowski, who has worked sporadically as a house painter, was arrested by federal agents on January 14. Magistrate Judge Jennifer Boal took the government’s request to have Polakowski held, under advisement. He is currently being held in the custody of the U.S. Marshal’s. No new court date has been scheduled.
According to court documents, federal agents identified a man in Arizona that was trading child pornography with an individual later identified as Polakowski. In addition to trading child pornography, Polakowski discussed his desire to violently abduct and rape pre-pubescent girls.On January 14, agents executed a search warrant at Polakowski’s home in West Yarmouth. During the time of the search, Polakowski was present, indicated he resided alone, and admitted that his computer contained child pornography. Polakowski further admitted that the email addresses were his and that he had traded the child pornography as indicated. During the execution of the search warrant, agents also recovered digital devices containing more than 800 images of child pornography, young girls’ underwear, and unopened children’s toys. Agents also identified items that Polakowski indicated in emails that he intended to use to carry out his violent plans, including his white cargo van, as well as the tape, rope cord, and baseball bat contained inside.
If convicted, Polakowski faces a minimum of five and a maximum of 20 years in prison, a minimum of five years and a maximum of lifetime supervised release and a $250,000 fine on the charge of distribution of child pornography. Polakowski faces a maximum of 20 years in prison, a minimum of five years and a maximum of lifetime supervised release and a $250,000 fine on the charge of possession of child pornography.United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The U.S. Attorney’s Office also wishes to thank the Massachusetts State Police and the West Yarmouth Police Department for their tremendous work on the case and their continued cooperation with the prosecution. The case is being prosecuted by Assistant U.S. Attorney Stacy Dawson Belf of Ortiz’s Major Crimes Unit.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274, and messages will be promptly returned.
The case is brought as part of Project Safe Childhood, a nationwide initiative created in 2006 by the Department of Justice to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the complaint affidavit are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Businessman Sentenced to Federal Prison for Defrauding City of El PasoRead the Press Release
This morning, 52-year-old Albert G. Torres, the owner of G.O.T. Supply, Inc. was sentenced to 18 months in federal prison followed by three years of supervised release for his role in a scheme to defraud the City of El Paso with respect to garbage collection services announced United States Attorney Robert Pitman and FBI Special Agent in Charge Douglas E. Lindquist.
United States District Judge Kathleen Cardone also ordered that Torres pay a $1,500 fine and $223,840 restitution to the City of El Paso. Furthermore, Judge Cardone ordered that Torres surrender to federal authorities within 90 days to begin serving his prison term.
On May 8, 2013, Torres pleaded guilty to one count of conspiracy to commit wire fraud and deprivation of honest services. By pleading guilty, Torres admitted that from January 2006 to October 2008, he paid bribes and kickbacks to former City of El Paso Fleet Maintenance Chief Lorenzo Avalos and others to secure work repairing and servicing El Paso city garbage trucks. During the scheme, Torres also admitted to selling parts to the City at higher-than-agreed-to prices.
“Today’s sentencing of Mr. Torres should serve as a strong message regarding the FBI’s thorough investigation of all those in the El Paso community involved in public corruption. Nothing erodes the public trust more than those who illegally conspire to line their own pockets with taxpayer dollars,” stated FBI SAC Lindquist.
On August 6, 2013, Avalos was sentenced to 37 months in federal prison followed by three years of supervised release for his role in the scheme. Avalos is also jointly and severally responsible for the restitution ordered by the Court.
This investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Chris Skillern prosecuted this case on behalf of the Government.
Buffalo Woman Charged with Bank Robbery and Accessory After the FactRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Sheila Cassata, 48, of Buffalo, N.Y., was arrested and charged by criminal complaint with bank robbery and accessory after the fact. The charges carry a maximum penalty of 30 years in prison and a $375,000 fine.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that according to the complaint, on December 27, 2013, the defendant drove Michael Mitchell (charged in separate federal complaint) to a Key Bank located at 201 Amherst Street near Military Road in Buffalo. Mitchell told Cassata that he was going to get “coin rolls.” The defendant then went to a nearby fast food restaurant and waited for Mitchell to call. The complaint further states that after receiving a call from Mitchell to pick him up near the bank, Mitchell told Cassata to get him out of there quickly because he can’t be caught with a weapon. Cassata told law enforcement officers that based on his actions, she knew he had robbed the bank. Cassata then dropped Mitchell off and he paid her $100.00 for “driving him around.”
Cassata’s arrest brings to 12 the number of defendants charged federally in a series of 22 bank robberies suspected to be related. A 13th defendant is facing state charges in the case.
Cassata made an initial appearance this afternoon before U.S. Magistrate Judge Hugh B. Scott and was released on conditions. Michael Mitchell made an initial appearance this morning before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending a detention hearing on January 21, 2014.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The criminal complaint is the culmination of an investigation by the Federal Bureau of Investigation’s Safe Streets Task Force, under the direction of Special Agent in Charge Brian P. Boetig, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Cheektowaga Police Department, under the direction of Chief David Zack, the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto, the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard and the Rochester Police Department, under the direction of Acting Chief Michael Ciminelli.Buffalo Man Charged with Multiple Bank RobberiesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Michael Mitchell, 21, of Buffalo, N.Y., was arrested and charged by criminal complaint with committing three bank robberies in a two month period of time. Bank robbery is punishable by a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that according to the complaint, the defendant is accused of committing the following bank robberies over the course of less than 60 days: • October 23, 2013, at Key Bank located at 2318 Delaware Avenue in Buffalo; • December 3, 2013, at First Niagara Bank located at 529 Elmwood Avenue in Buffalo; • December 16, 2013, at First Niagara Bank located at 801 Main Street in Niagara Falls.
The complaint further states that the three bank robberies, for which the defendant is arrested, contain similarities to a total of 22 separate bank robberies that began on April 23, 2013.
"Today's arrest demonstrates that Western New York is in no way to be confused with the Wild West of old when it comes to this type of crime,” said U.S. Attorney Hochul. “Our law enforcement partners from all branches will continue to work together seamlessly until the last culprit is captured. Those who would terrorize innocent members of the public and employees of our area’s businesses should know their days are numbered."According to the complaint, during the 22 robberies, there were similarities in the notes passed to the tellers, including language that described an exact caliber of weapon on the bank robber’s person or threat of another weapon; threat to the safety of individuals in the bank; explicit instructions not to hand out or activate bank security devices; instructions not to make eye contact; a specific amount of money requested; and that other people were waiting outside. Other similarities include the same bank locations getting robbed multiple times, time of day the bank robbery took place, and the lack of attempt to cover up physical features of the bank robber’s person.
Mitchell was arrested on January 15, 2013 and is expected to make an initial appearance on January 16, 2014 before U.S. Magistrate Judge Jeremiah J. McCarthy. The complaint states that 11 other persons also face charges in relation to the prior bank robberies. The investigation, meanwhile, continues.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The criminal complaint is the culmination of an investigation by the Federal Bureau of Investigation’s Safe Streets Task Force, under the direction of Special Agent in Charge Brian P. Boetig.Brownsville “Doctor” Sentenced in Stem Cell CaseRead the Press Release
HOUSTON – Francisco Morales, 54, of Brownsville, has been sentenced for his role in a conspiracy to introduce misbranded and unapproved new drugs into interstate commerce, announced United States Attorney Kenneth Magidson. Morales and co-defendant Lawrence Stowe, 60, both falsely represented they were licensed to practice medicine in the United States. Morales operated a medical clinic in Brownsville, but was reportedly only licensed to practice in Mexico and carried out stem cell treatments for U.S. citizens in Mexico.
Today, U.S. District Judge Gray Miller handed Morales a sentence of 60 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, Judge Miller noted his sentence was limited to 60 months by statute. Restitution was also ordered in the amount $479,862. Stowe is set for sentencing March 7, 2014.
On Sept. 5, 2012, Morales entered a guilty plea, admitting he sold an unapproved drug product to Stowe called SF 1019 knowing Stowe would sell this product to patients. Morales falsely represented to the public that he had extensive training and experience regarding stem cells and stem cell therapy, when his exposure was actually limited to attending seminars and reading materials published by researchers.
In June 2006, he received $8,300 from a couple to perform an unapproved stem cell procedure involving stem cells on their minor son who had experienced neurological problems after a near drowning incident. Prior to performing the procedure, Morales falsely represented that the stem cell procedure would be beneficial to combat the child’s medical condition. He also falsely represented to two other patients that he obtained stem cells from private Universities and had treated more than 1000 patients using stem cells with only positive results.
Stowe admitted that beginning in January 2006, he utilized several businesses, Stowe BioTherapy Inc. and The Stowe Foundation to advertise and promote a medical treatment protocol for the treatment of amyotrophic lateral sclerosis (ALS) also known as Lou Gehrig’s disease, multiple sclerosis (MS), Parkinson’s and other neurological diseases. This treatment protocol, which was named “Applied Biologics,” consisted of supplements, vaccines, patient specific transfer factors and ultimately stem cell therapy. Stowe falsely represented to patients that this treatment protocol had been reviewed by all levels of the FDA and was effective in the treatment of ALS, MS and Parkinson’s. There is currently no cure for these diseases.
Morales also pleaded guilty in a second case for introducing stem cells extracted from umbilical cords into interstate commerce and introducing an unapproved new drug into interstate commerce. He admitted to purchasing stem cells from a company called Caledonia Consulting located in Mt. Pleasant, S.C. After acquiring stem cells from Caledonia, he would travel to Mexico and perform stem cell procedures, knowing the FDA had not approved the use of stem cells to treat human diseases. Morales further admitted that in April 2009, he began purchasing vials containing stem cells from a company called Global Laboratories. He will be sentenced in that case tomorrow, Jan. 17, 2014, at 4:00 p.m. before U.S. District Judge Ewing Werlein Jr.
Two others were also convicted in that case - Alberto Ramon, of Del Rio, Texas, and Vincent Dammai, of Mount Pleasant, S.C. They are set for sentencing Jan. 27, 2014.
The cases were investigated by the Food and Drug Administration (FDA) - Office of Criminal Investigations and the FBI with assistance from Internal Revenue Service-Criminal Investigation. Assistant United States Attorney (AUSA) Cedric L. Joubert and former AUSA Samuel J. Louis prosecuted the case with assistance of Carol Wallack with the Department of Justice Civil Division’s Consumer Protection Branch.
Albrecht Muth Found Guilty of First-Degree Murder in 2011 Slaying of His 91-Year-Old Wife-Slaying Followed History of Domestic Violence-Read the Press Release
WASHINGTON – Albrecht Muth, 49, of Washington, D.C., was found guilty today of first-degree murder in the slaying of his wife, 91-year-old Viola Drath, announced U.S. Attorney Ronald C. Machen Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Muth, who has taken on numerous personas over the years, including that of an Iraqi Army general, was found guilty by a jury following a trial in the Superior Court of the District of Columbia. The jury found Muth guilty of first-degree (premeditated) murder with the aggravating circumstances that the murder was especially heinous, cruel, and inflicted on a vulnerable victim. Muth faces a maximum sentence of life without parole. The Honorable Russell F. Canan scheduled sentencing for March 19, 2014.
The trial took place without the defendant present in the courtroom. Muth, who has been in custody since his arrest in August 2011, has been hospitalized after staging a series of hunger strikes dating to December of 2012. His refusal of regular sustenance has caused his physical health to deteriorate and resulted in the hospitalization. The government contended that his refusal to eat was part of a manipulation designed to avoid trial. Muth was able to listen to and participate in the court proceedings, out of view of the jury, via a video link to the courtroom.
“Albrecht Muth has pretended to be an Iraqi general, a Count, and an East German spy, but in truth he is a cold-blooded killer who strangled his elderly wife to death,” said U.S. Attorney Machen. “Even as this trial approached, he tried to manipulate the system through on-and-off fasts designed to avoid facing justice for his terrible crime. This jury saw right through Albrecht Muth’s elaborate web of lies and held him accountable for his brutality.”
“With today’s conviction, Albrecht Muth must now face the consequences of his violent crime,” said Chief Lanier. “I applaud the hard-working members of this department and the U.S. Attorney’s Office in helping to make today’s conviction possible.”
According to the government’s evidence, on the morning of Aug. 12, 2011, Muth called 911 and reported that Ms. Drath was dead on the bathroom floor of their home in the 3200 block of Q Street NW. The District of Columbia Office of the Medical Examiner determined that Ms. Drath’s death was caused by strangulation and blunt force injuries.
On the evening of Aug. 11, 2011, the government’s evidence showed, Muth had been drinking. Witnesses indicated that Muth became progressively louder and somewhat belligerent during the course of the evening. A witness escorted Muth to the house on Q Street and saw him walking down the stairwell to the basement of his residence at approximately 10 p.m.
In the early morning hours of Aug. 12, 2011, a witness heard a woman’s faint cry and a man’s laugh emanating from inside the defendant’s home. Then, at approximately 7:56 a.m. on Aug. 12, 2011, Muth made the call to 911. When MPD officers arrived, there were no signs of forced entry into the house and nothing was taken or disturbed. According to the defendant, only he and Ms. Drath had keys to the house. Also according to the defendant, he and his wife were the only two people present in the home during the previous evening.
During the trial, the government presented evidence of a documented history of domestic violence by the defendant against his wife. In addition, Muth had made a number of statements over the years indicating a desire to kill her. By the summer of 2011, Ms. Drath had enough of the defendant’s abuse and was trying to end the marriage. Also, despite the fact that Ms. Drath specifically disinherited Muth in her will, he regularly pressured her for money. After killing the victim, and before her body was removed from the home, Muth presented a fraudulent document to the daughter of the victim demanding $200,000.
In announcing the verdict, U.S. Attorney Machen and Chief Lanier recognized the outstanding efforts of the detectives, evidence technicians, and officers who investigated the case from the Metropolitan Police Department. They expressed appreciation to the District of Columbia Department of Corrections for its assistance in the matter. They also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Erin O. Lyons, who assisted in the investigation; Paralegal Specialist Meridith McGarrity; Investigative Analysts Lawrence Grasso and Zachary McMenamin; Criminal Investigator John Marsh; Litigation Technology Specialist Leif Hickling, and Maria Shumar and David Foster of the Victim/Witness Assistance Unit.
Finally, they commended the work of Assistant U.S. Attorneys Glenn Kirschner and Laura Bach, who tried the case.
14-015Albany Area Man Sentenced to 63 Months for Defrauding Corporate Employer and Filing A False Tax ReturnRead the Press Release
ALBANY, NEW YORK – Richard S. Hartunian, United States Attorney for the Northern District of New York and Toni Weirauch, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, New York Field Office, announced that CRAIG MATUSZAK, age 49, of Gansevoort, New York, was sentenced Tuesday, January 14, 2014, in U.S. District Court in Albany, New York. U.S. District Judge Mae D’Agostino sentenced MATUSZAK to 63 months imprisonment, 3 years supervised release to follow the term of imprisonment, an order of restitution of $3,237,200.49 to Velocitel, Inc., an order of restitution of $439,019 to the Internal Revenue Service, and forfeiture of his home and vehicles.
On August 9, 2012, MATUSZAK pled guilty to one count of Mail Fraud in violation of Title 18, United States Code, Section 1341 and 2, and one count of Filing a False Income Tax Return in violation of Title 26, United States Code, Section 7206(1). MATUSZAK, an employee of Velocitel, Inc., admitted that he, together with an independent contractor for Velocitel, Inc., devised and executed a scheme to defraud Velocitel, Inc. by billing them for services that were never provided. MATUSZAK further admitted that he did not declare the income he received from the fraudulent scheme on his income tax return.
This prosecution resulted from a joint investigation conducted by the Internal Revenue Service, Criminal Investigations and the Federal Bureau of Investigation, Syracuse, N.Y. office. The case was prosecuted by Assistant United States Attorney Tamara B. Thomson. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.
Alabama Tax Preparer Indicted for Preparing False Returns for ClientsRead the Press Release
Russell Burroughs, a resident of Montgomery, Ala., was indicted on 33 counts of filing false tax returns, Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced today following the unsealing of the indictment yesterday.
According to the indictment, Burroughs owned and operated Computer Services, a tax return business located in Montgomery, Ala. Burroughs allegedly prepared and filed 33 false tax returns. The indictment alleges that the false items on the tax returns included false energy and education credits, false deductions and other false information.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Burroughs faces a statutory maximum potential sentence of three years in prison for each count of filing a false return.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation. Trial Attorneys Charles Edgar Jr., Katherine Reinhart and Michael Boteler of the Tax Division are prosecuting the case with the assistance of Assistant U.S. Attorney Todd Brown and the U.S. Attorney’s Office for the Middle District of Alabama.
Alabama Medical Clerk and Another Indicted in Stolen Identity Tax Refund Fraud SchemesRead the Press Release
Sasha Webb and Charlie Jackson have each been indicted for stolen identity refund fraud crimes, Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced today following the unsealing of their indictments after their arrests. Webb was arrested on Dec. 20, 2013, and Jackson’s arrest took place on Jan. 15, 2014.
Webb was charged with conspiracy to file false claims, mail fraud and aggravated identity theft. According to the indictment, Webb worked as a medical records clerk at an Alabama Department of Corrections facility in Elmore County, Ala. Webb had access to the means of identification of inmates and sold the information to Jacqueline Slaton and Harvey James, who then used the inmates’ information to file hundreds of false tax returns that claimed over one million dollars in false refunds. Slaton and James knowingly paid Webb for stolen identities.
Charlie Jackson, a resident of Montgomery, Ala., was charged with wire fraud and aggravated identity theft. According to the indictment, between October 2010 and April 2013, Jackson obtained stolen identities and used those identities to file false tax returns. Jackson directed the tax refunds to prepaid debit cards in the names of other individuals.
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Jackson and Webb each face a statutory maximum potential sentence of 20 years in prison for each wire and mail fraud count and a statutory mandatory two-year sentence for the aggravated identity theft counts. Webb also faces a statutory maximum potential sentence of five years in prison for the conspiracy count. Both defendants are also subject to fines, forfeiture and mandatory restitution if convicted.
The cases were investigated by special agents of the Internal Revenue Service - Criminal Investigation, U.S. Postal Inspectors and the Elmore County Sheriff’s Office. Trial Attorneys Jason Poole, Charles Edgar Jr. and Michael Boteler of the Tax Division are prosecuting the cases with the assistance of Assistant U.S. Attorney Todd Brown and the U.S. Attorney’s Office for the Middle District of Alabama.
13 Charged in Multi-Agency Wiretap Investigation Led by FBI and DEARead the Press Release
PITTSBURGH - A federal grand jury in Pittsburgh indicted 13 individuals in four separate, but related, indictments resulting from a multi-agency wiretap investigation, United States Attorney David J. Hickton announced today. All of the indictments were returned on Jan. 14 and unsealed today.
The first indictment, containing five counts, charges the following defendants with conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin, from September 2013 to December 2013. The indictment also charges certain of the defendants with firearms offenses, as well as specific distributions and/or possessions with intent to distribute quantities of heroin.
Fredrick Mack, 43, of Munhall, Pa.; Christopher Boyd, 36, of Pittsburgh, Pa.; Jalaspian L. Charles, 45, of Pittsburgh, Pa.; Henry Freeman, 45, of Pittsburgh, Pa.; Felix Manuel Cespedes Gomez, 32, of Brooklyn, NY; Dwight Hester, 44, of Pittsburgh, Pa.; Tonya Demitria Kendrick, 44, of Rankin, Pa.; Royance Godfrey Lambert, 48, of Brooklyn, NY; Robert Schatzman, 43, of Pittsburgh, Pa.; and
Allen William Turner, 45, of East Pittsburgh, Pa.The second indictment charges the following defendants with one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of powder cocaine, and 28 grams or more of crack cocaine, from September 2013 to December 2013:
Christopher Boyd, 36, of Pittsburgh, Pa.; Dwight Hester, 44, of Pittsburgh, Pa.; Fredrick Mack, 43, of Munhall, Pa.; Allen William Turner, 45, of East Pittsburgh, Pa.; and
Harold C. Young, 39, of Pittsburgh, Pa.The third indictment contains two counts and charges Royance Godfrey, 48, of Brooklyn, New York, and John R. Johnson, 36, of Pittsburgh, Pa. Count one charges both defendants with a conspiracy to distribute cocaine in October 2013. Count two charges only Johnson with possession with intent to distribute a quantity of cocaine, on or about Oct. 6, 2013.
The final indictment contains two counts and charges Guy Amatangelo, 41, of Pittsburgh, Pa, as sole defendant. Amatangelo is charged with a conspiracy to distribute and possess with intent to distribute crack cocaine in September and October 2013, and he is charged with possession of a firearm in furtherance of that drug-trafficking crime, on or about Oct. 5, 2013.
According to information that has been filed with the Court, beginning in September 2013, and continuing until December 2013, federal agents received authorization to intercept wire (voice calls) and electronic (text message) communications on four different cellular telephones. As a result of those wiretap intercepts, agents learned that a group of individuals was traveling to Brooklyn, New York on a regular basis to obtain quantities of heroin and cocaine for distribution in the greater Pittsburgh area. The four indictments are a result of that wiretap investigation.
The law provides for a maximum total sentence for the various charges ranging from 20 years to life in prison, and fines ranging from $1,000,000 to $8,000,000, 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 Attorneys Troy Rivetti and Jonathan Ortiz are prosecuting this case on behalf of the government.
This prosecution is the result of a federal Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by the Federal Bureau of Investigation and the Drug Enforcement Administration. Other participating agencies include the Allegheny County Police Department, Pennsylvania State Police, Allegheny County Sheriff's Office, Pittsburgh Bureau of Police, Munhall Police Department and Wilkinsburg Police Department.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
15 January 2014
Woman Who Absconded After Arrest on A Federal Felony Drug Charge Is Sentenced to 136 Months in Federal PrisonRead the Press Release
WICHITA FALLS, Texas —Janis Hernandez, 31, of Electra and Killeen, Texas, has been sentenced by U.S. District Judge Reed C. O’Connor, to 136 months in federal prison following her guilty plea in June 2013 to an indictment charging conspiracy to possess with intent to distribute and to distribute methamphetamine, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
All seven defendants charged in the case have pleaded guilty and all but one has been sentenced:
Anthony Rueben Johnston, 28, to 480 months (40 years) in federal prison
Rachel Dawn Billen, 21, to 36 months
Louis Griego, Jr., 44, to 168 months
James Allen Holley, 34, to 142 months
Christina Gail Thompson, 32, to 42 monthsCo-conspirator Darren Scott Murphy, Jr., 26, is scheduled to be sentenced by Judge O’Connor on January 27, 2014. Each of the defendants pleaded guilty earlier this year to one count of conspiracy to possess with intent to distribute methamphetamine.
According to documents filed in her case, Hernandez admitted that on multiple occasions between August and November 2012, she distributed and facilitated the distribution of methamphetamine in Electra and Wichita Falls, Texas. Co-conspirator Murphy supplied the methamphetamine. She further admitted that she acted as an intermediary and broker to distribute methamphetamine in Wichita Falls and introduced to Murphy to others so they could obtain methamphetamine from him. Hernandez allowed Murphy to distribute methamphetamine from her home in Electra.
The Texas Department of Public Safety, the Wichita Falls Police Department, the Wichita County District Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution
Woman Pleads Guilty to Wire Fraud and Filing False Tax ReturnsRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Linda Rakonczay, 58, of Middleport, N.Y., pleaded guilty to wire fraud and filing false tax returns before Chief U.S. District Judge William M. Skretny. The charges carry a maximum sentence of 20 years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that the defendant worked as a payroll coordinator for Orleans Community Health in Medina, N.Y. Beginning in 2001 and continuing through 2012, Rakonczay prepared and submitted reports to the organization’s bank instructing the bank to electronically transfer money from the corporate bank account to her personal bank account. The amount transferred from the organization’s bank account to the defendant’s account totaled $499,563,00. For tax years 2007 through 2012, Rakonczay failed to report such income and failed to pay federal taxes to the Internal Revenue Service totaling nearly $94,000,00.
The conviction is the result of an investigation on the part of Special Agents of Federal Bureau of Investigation under the direction of Special Agent-In-Charge Brian P. Boetig and the Internal Revenue Service, Criminal Investigations Division, under the direction of Toni M. Weirauch, Special Agent in Charge.
Sentencing is scheduled for May 5, 2014, before Chief Judge Skretny.Windham Man Sentenced to Three Years on Child Pornography ChargeRead the Press Release
Contact: Darcie N. McElwee
Assistant U.S. Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Paul
Liming, 65, of Windham, was sentenced yesterday in United States District Court by Judge
Nancy Torresen to three years of imprisonment and ten years of supervised release for possession of child pornography. Liming pled guilty to the charge on January 4, 2013.According to court records, in January 2011, Liming brought a computer to the Best Buy store in South Portland, Maine and asked for assistance in recovering data from its hard drive. A
Best Buy technician discovered several files that appeared to contain child pornography. A forensic examination conducted on the computer by the Federal Bureau of Investigation (FBI) pursuant to a search warrant revealed over 600 image files and 200 video files containing child pornography. Although Liming had no criminal history and was retired from a career as an executive, the Court imposed the three year sentence because of the seriousness of the crime which causes the children depicted to be repeatedly victimized.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 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 investigation was conducted by the FBI.
Wesley White, Sr. Pleads Guilty to Crack Cocaine ChargesRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Wesley White, Sr., a/k/a “Westside”, 38, of Valdosta, Georgia, entered a plea of guilty on January 13, 2014, to possession with intent to distribute more than 28 grams of “crack cocaine”. Mr. White entered his plea of guilty before Senior U.S. District Court Judge Hugh Lawson in Valdosta, Georgia.As a part of his plea agreement, Mr. White admitted that on June 3, 2013, a search warrant was executed at his residence in Valdosta, Georgia, which yielded drugs intended for distribution. During the search, investigators discovered six (6) cookies of crack cocaine packaged in sandwich bags, seven (7) bags of powder cocaine, a one (1) gallon-sized bag of marijuana and a cocaine press which contained some of the cocaine, in the kitchen of the residence. In the living room, officers found two (2) quart-sized bags of marijuana, digital scales and $1216.00 in currency.
The Court scheduled sentencing for April 28, 2014 in Valdosta, Georgia. Mr. White faces a sentence of a mandatory minimum of five (5) years up to forty (40) years imprisonment and a $5,000,000.00 fine, or both.“In the Middle District of Georgia, people who deal drugs will face the full force of the federal authorities, specifically my office, which is made possible by the extraordinary cooperative efforts of our state and federal law enforcement agencies,” said U.S. Attorney Michael Moore.
The case is the culmination of many years of investigation by the FBI Southwest Georgia Gang Task Force, Lowndes County Sheriff’s Office Special Operations Division, Valdosta Police Department and the Colquitt County Sheriff’s Office. Assistant United States Attorney Robert D. McCullers is handling the prosecution for the Government.
For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Warren County, N.J., Man Admits Distributing Images of Child Sexual Abuse over the InternetRead the Press Release
NEWARK, N.J. – A registered sex offender who was formerly employed at a law office in Paterson, N.J., admitted today to distributing images of child sexual abuse over the Internet, U.S. Attorney Paul J. Fishman announced.
Kevin Rease, 33, of Hackettstown, N.J., pleaded guilty today before U.S. District Judge Dennis M. Cavanaugh in Newark federal court to Count One of an indictment charging him with distributing images of child pornography.
According to documents filed in the case and statements in court:
Rease admitted that on Feb. 12, 2013, he made images and videos of child sexual abuse stored on his work computer available for others to download via an online peer-to-peer file sharing network. On that date, an undercover law enforcement agent successfully downloaded videos of child sexual abuse from Rease through the file sharing network.
Rease has a prior federal conviction for transportation of child pornography as well as prior state convictions for luring, sexual assault by sexual contact and endangering the welfare of a child.
As a previously convicted sex offender, the distribution of child pornography count to which Rease pleaded guilty is punishable by a maximum potential penalty of 40 years in prison, a mandatory minimum sentence of 15 years in prison, and a maximum fine of $250,000. Sentencing is currently scheduled for April 28, 2014.
U.S. Attorney Fishman credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division.
14-018
Defense counsel: William B. Ware Esq., Chester, N.J.
Rease Indictment
Virginia Doctor Convicted on Perjury Charges in Orthofix InvestigationRead the Press Release
BOSTON – A Virginia doctor was convicted today of making a false declaration to a grand jury regarding her involvement in falsifying patient medical records.
Ilene Terrell, 65, of Fredericksburg, Va. pleaded guilty before U.S. District Judge Nathaniel M. Gorton to four counts of making a false declaration to a grand jury. Judge Gorton scheduled sentencing for April 17, 2014. Terrell faces a maximum of five years in prison, three years of supervised release and a $250,000 fine on each count.
Terrell, a podiatrist, lied to the grand jury about her role in falsifying patient medical records to induce Medicare to pay for claims for Orthofix bone growth stimulator medical devices that did not meet Medicare’s payment guidelines. Bone growth stimulators are externally-worn medical devices that help regenerate bone cells and are used to assist the healing of broken bones. Medicare only pays for a bone growth stimulator if the medical supplier provides records demonstrating that fracture healing has ceased for three or more months. If the bone may heal on its own, Medicare will not pay for a stimulator, which can cost upwards of $4,000.On numerous occasions, Terrell prescribed a stimulator for a patient where the claim would not have met Medicare’s guidelines. When this occurred, the Orthofix territory manager, Terrell, and an employee at Terrell’s direction often falsified the patient’s medical records, making it appear as though the stimulator was not prescribed until three months had elapsed without healing, when that was untrue and Medicare should not have paid the claim. On some occasions, Terrell prescribed a stimulator for a patient and the patient’s bone healed within the prohibited three-month window. When that occurred, Terrell, an Orthofix representative, and an employee at Terrell’s direction deleted references in chart notes that the patient was using the stimulator and was healing, and they created a new, fictitious note at the end of the 90-day period stating that the bone was still broken and that a stimulator would be ordered. Terrell also created fictitious prescriptions to support the bogus claims.
On May 22, 2012, Terrell testified before the grand jury. She was asked several times if she was aware that patient records had been manipulated. Terrell lied to the grand jury, emphatically denying that she manipulated patient records or that she was even aware that anyone had done so. Terrell lied about other matters as well, including her communications with an Orthofix representative about the government’s investigation. Terrell discussed the government’s investigation at length with the Orthofix representative and instructed him that “you and I have not talked.” She also threatened him, stating: “If you guys take me out you are never going to live to hear the end of it. If I roll on this, I am serious, heads are going to roll, heads are absolutely gonna roll.” In the grand jury, Terrell was asked if she had recently spoken with the Orthofix representative. Terrell lied, stating that she only spoke with him briefly and that the sum total of the conversation was that the representative stated that he did not know what the investigation was about.
United States Attorney Carmen M. Ortiz and Philip Coyne, Special Agent in Charge of the Department of Health and Human Services made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys David S. Schumacher and Miranda Hooker of Ortiz’s Health Care Fraud Unit.