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9 January 2014
Colorado Woman Indicted for Drug ConspiracyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Colorado Springs, Colorado, woman has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Barbara Olson, age 52, was indicted on November 19, 2013. She appeared before U.S. Magistrate Judge Veronica L. Duffy on January 6, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.
Beginning no later than the summer of 2012, Olson conspired with others to distribute more than 500 grams of methamphetamine in the District of South Dakota.
The charge is merely an accusation and Olson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Unified Narcotic Enforcement Team, and the Drug Enforcement Administration. Assistant U.S. Attorney Ted L. McBride is prosecuting the case.
Olson was released on bond pending trial. A tentative trial date has been set for March 11, 2014.
Colorado Man Indicted for Flying More Than 70 Pounds of Cocaine to Baton RougeRead the Press Release
BATON ROUGE, LA - Acting United States Attorney Walt Green announced today the indictment of a Colorado man charged with attempting to transport more than seventy (70) pounds of cocaine through Baton Rouge on a private aircraft.
A federal grand jury has returned a two-count indictment charging VINCENT SALZANO, also known as Vincenzo Salzano, age 55, of Aurora, Colorado, with conspiring to possess with the intent to distribute five (5) kilograms or more of cocaine, in violation of Title 21, United States Code, Section 846, and possession with the intent to distribute five (5) kilograms or more of cocaine, in violation of Title 21, United States Code, Section 841(a)(1). If convicted of both counts, SALZANO faces a maximum sentence of life imprisonment and up to $20,000,000 in fines. SALZANO also faces the forfeiture of the airplane involved in the criminal activity and any proceeds derived from such activity.
The indictment arises from SALZANO’s arrest this past fall at the Baton Rouge Metropolitan Airport. The indictment alleges that on October 7, 2013, SALZANO met with other individuals and boarded a private plane that SALZANO controlled and that had been flown to Atlanta at SALZANO’s direction. The following day, SALZANO allegedly flew from Atlanta to the McAllen, Texas area, where he deplaned, left the airport, and obtained approximately 30 packaged bundles of cocaine. SALZANO and another individual then allegedly re-boarded the plane, carrying the cocaine and intending to travel back to Atlanta. According to the indictment, SALZANO’s plane stopped in Baton Rouge for fuel, at which point SALZANO was contacted by law enforcement agents and arrested.
The ongoing investigation is being conducted by the United States Attorney’s Office, the U.S. Department of Homeland Security – Homeland Security Investigations, U.S. Customs and Border Protection, and the Louisiana State Police, with assistance from the West Baton Rouge Parish Sheriff’s Department, the Federal Aviation Administration, and other law enforcement agencies. The matter is being prosecuted by Assistant United States Attorneys Alan A. Stevens and James P. Thompson.
NOTE: An indictment is a determination by a grand jury that probable cause exists to believe that offenses have been committed by a defendant. The defendant is presumed innocent until and unless proven guilty at trial.
Child Sex Trafficker Sentenced to Nine Years ImprisonmentRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced today that U.S. District Judge James Brady sentenced ERICK BANKS, age 32, of Baton Rouge, Louisiana, to 108 months imprisonment for conspiring to traffic a child in the commercial sex trade. BANKS was also sentenced to five years supervised release after imprisonment and ordered to pay the victim $1,200 in restitution.
During his guilty plea hearing last year, BANKS admitted that in January 2011, he enticed the victim, a 15 year old girl, to engage in acts of prostitution. Several days earlier, the victim ran away from a Baton Rouge home for teenage girls. BANKS placed several ads on an online service often utilized by those in the commercial sex trade. BANKS used the moniker “Sinsational” or “Blonde Bunny” to describe the victim in the ads. BANKS instructed the victim how to engage in telephone conversations with potential customers and how to determine if a customer was a law enforcement officer.
On January 27, 2011, in five separate transactions, the victim engaged in sexual activity in exchange for money. Each of these transactions was coordinated by BANKS and occurred in a hotel in Baton Rouge. The victim was paid approximately $1,200, all of which BANKS took from her.
Acting United States Attorney Walt Green stated: “We will not tolerate the sexual exploitation and trafficking of vulnerable, young teenagers, and hope this significant sentence serves notice to others inclined to engage in such despicable conduct. We appreciate the strong work of the FBI and the Baton Rouge Police Department and commend the Middle District Human Trafficking Task Force for its efforts in educating law enforcement and the public in general about this issue. We are also inspired by the courage of the victim in this case and hope it inspires other victims of sex trafficking to come forward.”
This investigation was conducted by the FBI and Baton Rouge Police Department. The matter is being prosecuted by Assistant United States Attorneys Frederick A. Menner, Jr. and Susan C. Amundson.
Chicago U.S. Attorney’s Office Collected $78.1 Million in Civil and Criminal Actions in Fiscal Year 2013Read the Press Release
CHICAGO ― The U.S. Attorney's Office for the Northern District of Illinois collected $78.1 million in fiscal year (FY) 2013, Zachary T. Fardon, United States Attorney for the Northern District of Illinois, announced today. These collections included more than $31.8 million in criminal debts, more than $31.8 million in civil actions, and $14.5 million in forfeited assets, resulting in the office’s total collections exceeding well more than twice its budget of approximately $33.8 million in FY 2013. Over the last 10 fiscal years combined, the office has collected more than $915 million on behalf of the United States.
In addition, in FY 2013, a court-appointed special master distributed $50 million in restitution to more than 7,000 victims in a criminal investment fraud case against a defendant who owned properties in Mexico and Panama. This amount was not included in the U.S. Attorney’s Office’s direct collection figures because it was handled by the special master, but it resulted from the office’s prosecution of this defendant.
In addition to the $63.6 million collected through criminal and civil cases, the office collected $14.5 million through asset forfeiture proceedings. The largest amount in this category, approximately $9.2 million in net liquidated proceeds, came from the forfeited assets of Rita Crundwell, the former comptroller of Dixon, Ill., who is serving a sentence of 19 years and five months in prison for embezzling $53 million from the town over two decades. The $9.2 million in forfeiture proceeds was restored to the City of Dixon last month.
Attorney General Eric Holder announced today that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“This news is more important now than ever,” Mr. Fardon said. “During fiscal year 2013, despite historically challenging circumstances, we collected more than double what we cost. The men and women of this office ― especially in our Civil Division, Financial Litigation Unit, and Asset Forfeiture Section ― have demonstrated once again our commitment to protecting the public and recovering funds for the federal treasury and for victims of federal crime. We seek to keep those we prosecute from profiting from their crimes. In pursuit of that goal, we have provided a substantial net financial benefit to the citizens of our district,” Mr. Fardon added.
During FY 2013, the U.S. Attorney’s Financial Litigation Unit in Chicago collected $31,812,252.86 in criminal actions, including more than $1.8 million in criminal fines; more than $16.7 million in restitution owed to the federal government; and more than $12.9 million in nonfederal restitution owed to victims, including the victims of various financial frauds and Ponzi schemes.
Among the criminal collections was $10.27 million in restitution to the Internal Revenue Service that was paid last August by two business owners who received prison terms for failing to report as income and pay personal and corporate taxes on more than $22 million they diverted from their business and divided equally. Already in In FY 2014, the U.S. Attorney’s Office has collected a $53 million civil penalty on behalf of the IRS from a different business owner who is awaiting sentencing after pleading guilty to failing to report income from a secret foreign bank account.
In civil actions, the office collected $31,817,946.56, including amounts of $12.9 million, $2.93 million, and $2.4 million to settle civil health care fraud cases under the False Claims Act.
Civil collections typically were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.
The U.S. Attorney's Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. When defendants are convicted and sentenced in criminal cases, judges must impose restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. The U.S. Attorney's Offices are authorized to make efforts to collect criminal debts for 20 years after defendants are released from custody.
While restitution is paid by Courts directly to the victim, criminal fines and felony assessments are paid to the Justice Department's Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs. Liquidated assets obtained through criminal and civil forfeiture proceedings are deposited into either the Department of Justice Asset Forfeiture Fund or the Department of Treasury Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
Charleston Man Sentenced to Nearly 5 Years in Prison on Federal Drug ChargeRead the Press Release
Police found a total more than 3,700 wrapped doses of heroin and cocaine during traffic stop
CHARLESTON, W.Va. – A 28-year-old man who had thousands of individually wrapped doses of heroin and cocaine during a June 2013 traffic stop in Charleston was sentenced today to four years and nine months in federal prison, U.S. Attorney Booth Goodwin announced. William Charles Landon, IV, of Charleston, previously pleaded guilty in October 2013 to possession with intent to distribute heroin and cocaine. The sentence was handed down by United States District Court Judge Thomas E. Johnston in Charleston.
On June 16, 2013, police conducted a traffic stop of Landon’s vehicle along Interstate 79 in Charleston. Landon later consented to a search of the vehicle. During the search, police seized approximately 3,747 individually wrapped doses of heroin and nearly 100 grams of cocaine. Landon told police that the cocaine and heroin belonged to him.
This case was investigated by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Joshua Hanks handled the prosecution.
Central District of Illinois’ U.S. Attorney’s Office Collects $11.5 Million in Criminal & Civil Actions in FY 2013Read the Press Release
Springfield, Ill. - U.S. Attorney Jim Lewis announced today that the Central District of Illinois collected $11.5 million for taxpayers in criminal and civil actions in fiscal year 2013. Of this amount, $1,535,380 was collected in criminal actions by the Central District alone; an additional $2,600,849 was collected in criminal actions by the District with other Department of Justice entities. In civil actions, the District collected $3,963,535 alone, and another $3,400,000 with other DOJ entities.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“We hold people accountable when the law says that they should be accountable,” said U.S. Attorney Lewis. “We collect restitution for victims of crime, we collect damages if there has been fraud in government programs, we collect debts owed to the government, and we protect federal funds and the public treasury. We do our very best to make sure that justice is done.”For just one example, the Central District recovered $1,199,629 in delinquent taxes and $2,596,194 in restitution for victims of a bank fraud and money laundering case relating to Bloomington-based Wildwood Industries, Inc., and defendants Gary and Toni Jo Wilder.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.Additionally, the U.S. Attorney’s office in the Central District of Illinois, working with partner agencies and divisions, collected $528,000 in asset forfeiture actions in FY 2013. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Central Alabama Violent Gang Safe Streets Task Force CreatedRead the Press Release
Montgomery, Alabama - The Central Alabama Violent Gang Safe Streets Task Force has been created to combat the increase in violence in Central Alabama, announced Chief Paul Register, Auburn Police Department; Chief Greg Benton, Dothan Police Department; Sheriff Bill Franklin, Elmore County Sheriff’s Office; Sheriff Andy Hughes, Houston County Sheriff’s Office; Director Christopher Murphy, Montgomery Department of Public Safety; Chief Kevin Murphy, Montgomery Police Department; Sheriff D.T. Marshall, Montgomery County Sheriff’s Office, FBI Special Agent in Charge Stephen E. Richardson and U.S. Attorney George L. Beck, Jr..
The Central Alabama Violent Gang Safe Streets Task Force was created to identify, target, arrest and convict criminals who commit drug trafficking, money laundering, alien smuggling, murder, aggravated assault, robbery, and other violent crimes. This Safe Streets Task Force will help federal, state, and local law enforcement combat violent crime by combining federal, state and local resources and using these resources to most effectively investigate, arrest, and convict these dangerous criminals.
Each police department or sheriff’s office involved in the new Central Alabama Violent Gang Safe Streets Task Force has assigned an experienced investigator to serve full time with the task force. The U.S. Department of Justice will provide funding to the task force for officer overtime, office space, vehicles, and other equipment necessary for the arrest and conviction of dangerous criminals. This Safe Streets Task Force is similar to those that have been established in Mobile, Birmingham, and Atlanta. Those with information on violent criminals and gangs should contact the FBI Safe Streets Gang Task Force members at the Montgomery and Dothan offices of the FBI.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Carefusion to Pay the Government $40.1 Million to Resolve Allegations That Include More Than $11 Million in Kickbacks to One DoctorRead the Press Release
WASHINGTON – CareFusion Corp. has agreed to pay the government $40.1 million to settle allegations that it violated the False Claims Act by paying kickbacks and promoting its products for uses that were not approved by the Food and Drug Administration, the Justice Department announced today. CareFusion, a California-based medical technology company, develops, manufactures and sells pharmaceutical products, including products sold under the trade name ChloraPrep.
“When companies pay kickbacks to doctors, especially doctors involved in setting standards for the health care industry, they undermine the integrity of the health care system,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Corrupting the standard-setting process through kickbacks can affect the health care treatment choices that doctors and hospitals may make for patients.”
The settlement resolves allegations that, under agreements entered into in 2008 by Carefusion’s predecessor, CareFusion paid $11.6 million in kickbacks to Dr. Charles Denham while Denham served as the co-chair of the Safe Practices Committee at the National Quality Forum, a non-profit organization that reviews, endorses and recommends standardized health care performance measures and practices. The government contends that the purpose of those payments was to induce Denham to recommend, promote and arrange for the purchase of ChloraPrep by health care providers. ChloraPrep has been approved by the Food and Drug Administration for the preparation of a patient’s skin prior to surgery or injection.
This settlement also resolves allegations that, during the period between September 2009 and August 2011, CareFusion knowingly promoted the sale of ChloraPrep for uses that were not approved by the Food and Drug Administration, some of which were not medically accepted indications, and made unsubstantiated representations about the appropriate uses of ChloraPrep.
“Health care fraud drives up the cost of health care and jeopardizes the strength of our health care system,” said U.S. Attorney for the District of Kansas Barry Grissom. “This case demonstrates that our fight against health care fraud is helping to protect all Americans, including the elderly, the disabled and the most vulnerable among us.”
The settlement resolves a lawsuit filed by Dr. Cynthia Kirk, a former vice president of regulatory affairs for the Infection Prevention Business Unit of CareFusion, under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens with knowledge of false claims to file suit on behalf of the government and to share in any recovery. The whistleblower’s, or relator’s, share in this case is $3.26 million.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement with CareFusion was the result of a coordinated effort among the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of Kansas, the U.S. Department of Health and Human Services Office of Inspector General and the Food and Drug Administration Office of the Chief Counsel.
The lawsuit is captioned United States ex rel. Kirk v. CareFusion et al., No. 10-2492 (D. Kan.) The claims resolved by the settlement are allegations only; there has been no determination of liability.
IF YOU HAVE QUESTIONS, PLEASE CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
CareFusion to Pay the Government $40.1 Million<br /> to Resolve Allegations That Include More Than $11 Million in Kickbacks to One DoctorRead the Press Release
CareFusion Corp. has agreed to pay the government $40.1 million to settle allegations that it violated the False Claims Act by paying kickbacks and promoting its products for uses that were not approved by the Food and Drug Administration, the Justice Department announced today. CareFusion, a California-based medical technology company, develops, manufactures and sells pharmaceutical products, including products sold under the trade name ChloraPrep.
“When companies pay kickbacks to doctors, especially doctors involved in setting standards for the health care industry, they undermine the integrity of the health care system,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Corrupting the standard-setting process through kickbacks can affect the health care treatment choices that doctors and hospitals may make for patients.”
The settlement resolves allegations that, under agreements entered into in 2008 by CareFusion’s predecessor, CareFusion paid $11.6 million in kickbacks to Dr. Charles Denham while Denham served as the co-chair of the Safe Practices Committee at the National Quality Forum, a non-profit organization that reviews, endorses and recommends standardized health care performance measures and practices. The government contends that the purpose of those payments was to induce Denham to recommend, promote and arrange for the purchase of ChloraPrep by health care providers. ChloraPrep has been approved by the Food and Drug Administration for the preparation of a patient’s skin prior to surgery or injection.
This settlement also resolves allegations that, during the period between September 2009 and August 2011, CareFusion knowingly promoted the sale of ChloraPrep for uses that were not approved by the Food and Drug Administration, some of which were not medically accepted indications, and made unsubstantiated representations about the appropriate uses of ChloraPrep.
“Health care fraud drives up the cost of health care and jeopardizes the strength of our health care system,” said U.S. Attorney for the District of Kansas Barry Grissom. “This case demonstrates that our fight against health care fraud is helping to protect all Americans, including the elderly, the disabled and the most vulnerable among us.”
The settlement resolves a lawsuit filed by Dr. Cynthia Kirk, a former vice president of regulatory affairs for the Infection Prevention Business Unit of CareFusion, under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens with knowledge of false claims to file suit on behalf of the government and to share in any recovery. The whistleblower’s, or relator’s, share in this case is $3.26 million.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement with CareFusion was the result of a coordinated effort among the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of Kansas, the U.S. Department of Health and Human Services Office of Inspector General and the Food and Drug Administration Office of the Chief Counsel.
The lawsuit is captioned United States ex rel. Kirk v. CareFusion et al., No. 10-2492 (D. Kan.) The claims resolved by the settlement are allegations only; there has been no determination of liability.
Buffalo Man Pleads Guilty to Bank RobberyRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Jason Berg, 22, Buffalo, N.Y., pleaded guilty to bank robbery before U.S. District Court Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison, a $250,000 fine, or both.
Sentencing is scheduled for April 18, 2014 at 12:30 p.m. before Judge Arcara.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that the defendant robbed the First Niagara Bank, located at 1000 Elmwood Avenue in Buffalo, on April 26, 2013. Berg then robbed the M&T Bank, located at 788 Tonawanda St. in Buffalo, on May 16, 2013 and the M&T Bank, located at 1580 Hertel Avenue in Buffalo, on June 12, 2013. The defendant passed notes to the bank tellers indicating he possessed a firearm and demanded specific amounts of money.
The plea is the result of a joint investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, and the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto.
Brotherly Love Ambulance EMT Charged in Health Care Fraud SchemeRead the Press Release
PHILADELPHIA - Neel Jackson, 35, of Philadelphia, PA, was charged today by Information with Health Care Fraud and aiding and abetting health care fraud, announced United States Attorney Zane David Memeger.
In July 2010, Feda Kuran, who is charged elsewhere and has pleaded guilty, began operating Brotherly Love Ambulance, Inc. with a co-schemer. According to the Information, Jackson, an Emergency Medical Technician (EMT) employed by Brotherly Love, transported patients by ambulance when those patients could have been transported safely by other means and were, therefore, not eligible for ambulance service under Medicare and Medicaid requirements. It is further alleged that Jackson and others completed paperwork, including “run sheets,” representing that patients needed ambulance services, when he knew that they were able to walk or to be transported by public transportation or para-transit van. In addition, it is alleged that Jackson gave envelopes he understood to contain cash or other payments to induce patients to allow Brotherly Love to transport them and/or to induce them to remain with Brotherly Love. Finally, it is alleged that Jackson received payments for referring patients to Feda Kuran and/or Brotherly Love. According to the Information, as a result of Jackson’s actions, the Medicare program paid more than $200,000 in inappropriate bills. As a result of the overall scheme at Brotherly Love, it is alleged that the Medicare program paid more than $2 million in inappropriate bills.
If convicted, the defendant faces a maximum possible sentence of 10 years of in prison, three years of supervised release, a $250,000 fine, a $100 special assessment, and an order of restitution and forfeiture.
The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General, the Federal Bureau of Investigation, and the U.S. Department of Labor Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Matthew J.D. Hogan and Paul W. Kaufman.
Click here to view the indictment
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Boston Man Pleads Guilty to ATM BurglaryRead the Press Release
BOSTON – A Boston man was convicted today for the 2012 robbery of an ATM in Boston’s South End.
Terry K. Leigh, 47, pleaded guilty to bank burglary. He is scheduled to be sentenced by Judge F. Dennis Saylor on April 3, 2014.
On Aug. 11, 2012, federal agents and detectives were conducting surveillance on a Bank of America ATM located at 465 Columbus Avenue, Boston, in regards to an ongoing investigation of ATM burglaries. At approximately 9:45 p.m. the agents observed two individuals enter the lobby of an apartment building located next to the ATM. Access to the ATM’s “money room” is gained through a locked security door within the apartment building’s lobby. One of the individuals, later identified as Leigh, was carrying a green duffle bag and wearing a blue hat, a gray shirt, dark sweatpants and what appeared to be a fake black beard. After a few minutes, both individuals left the apartment building’s lobby and exited onto Columbus Avenue. Leigh then reentered the apartment building. The agents, believing that the ATM was about to be robbed, gained access to the building’s lobby and observed Leigh exiting the ATM’s “money room.” Leigh fled up an adjoining staircase and was captured a short time later on the building’s roof. Following Leigh’s arrest, the agents located the green bag containing various cutting tools, the blue hat and the fake beard which Leigh had been wearing. The ATM, which sustained significant damage, contained in excess of $240,000.
Leigh faces a maximum penalty of 20 years in prison, three years of supervised release, a $250,000 fine, and restitution for the damage to the ATM.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Evans, made the announcement today. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Birmingham Man Sentenced to Nearly Three Years in Prison for Multi-Million Dollar Tax SchemeRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Birmingham man to nearly three years in prison and ordered him to repay the government $1.3 million for his scheme to collect millions of dollars from the Internal Revenue Service on false tax returns, announced U.S. Attorney Joyce White Vance and IRS Criminal Investigation Division Special Agent in Charge Veronica Hyman-Pillot.
U.S. District Judge L. Scott Coogler sentenced DOUGLAS ERVIN DENT, 67, to 33 months in prison on 20 counts of false claims against the government. Dent must serve three years of supervised release after completing his prison sentence. A federal grand jury indicted Dent in April. He pleaded guilty to the charges in August.
"This defendant will now go to prison for the $11 million worth of false tax returns he submitted to the IRS," Vance said. "The tax fraud he perpetrated is both a crime and an affront to the millions of hard-working Americans who pay their justly owed taxes each year. Criminals who scheme to avoid paying taxes or to steal money from the U.S. Treasury will be prosecuted."
“Today’s sentence of Mr. Dent should serve as a deterrent to individuals who attempt to manipulate our nation’s tax system,” Hyman-Pillot said. “As we approach tax filing season, individuals should be aware of the consequences of filing false claims, as evidenced today. IRS Criminal Investigation will continue its aggressive pursuit of those individuals who devise schemes to defraud the federal government.”
Dent was convicted of filing 20 false income tax returns in his own name and on behalf of others between April 2008 and October 2009. Dent knew that he and the other taxpayers were not entitled to the $11 million in refunds he claimed, according to court records. Each false tax return claimed that money was earned by the taxpayer and withheld by various financial institutions on behalf of the taxpayer during the tax year, and that the taxpayer was entitled to refund of those withholdings from the IRS. In truth, no such earnings and withholdings had occurred.
Among the 20 false returns, Dent filed four in his name and one in the name of his deceased mother. As a result of one of the false returns, Dent received a tax refund of $533,673 from the IRS.
In accordance with Dent's plea agreement with the government, prosecutors recommended a 33-month prison sentence, based on Dent's cooperation in the case.
Baltimore Armed Robber Sentenced to over 12 Years in Prison for Committing A Dozen Armed RobberiesRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Tavon McPhaul, age 22, of Baltimore, Maryland today to 145 months in prison, followed by five years of supervised release, for a commercial robbery conspiracy and possession of a firearm in furtherance of a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Kevin Davis.According to his plea agreement, from May 2012 through July 4, 2012, McPhaul, Quindell Gardner and others robbed stores in the Baltimore area. After deciding which place to rob, the conspirators would steal a car to use during the robbery. They also used a gun during the robberies to steal cash and cigarettes.
McPhaul admitted that he committed approximately 12 armed robberies, with Gardner going into the store to commit the robbery and McPhaul driving the getaway vehicle. Between June 28 and July 4, 2012, Gardner and McPhaul robbed five Baltimore area convenience stores, including a convenience store in the 6300 block of Eastern Avenue in Baltimore on July 4, 2012, with Gardner using a short-barreled shotgun in each of the robberies.
Gardner was arrested following two convenience store robberies on July 4, 2012, after a car chase. Gardner’s clothing matched that of the individual who participated in both robberies that day. McPhaul, who was driving the getaway car, escaped on foot. While running, McPhaul attempted to wipe the firearm clean with a blanket. A sawed-off shotgun was recovered along the path of McPhaul’s escape. The vehicle driven by McPhaul during the robbery was found to be stolen.
Quindell Ryeshawn Gardner, age 22, also of Baltimore, previously pleaded guilty to the same charges and is awaiting sentencing. Gardner and the government have agreed that if the Court accepts his plea agreement, he will be sentenced to between 15 and 25 years in prison.
United States Attorney Rod J. Rosenstein praised the FBI, the Baltimore City and Baltimore County Police Departments and Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Benjamin M. Block, who is prosecuting the case.
Amarillo Anesthesiologist Sentenced to 45 Months in Federal Prison on Federal Tax Evasion ChargesRead the Press Release
Dr. Edgar A. Lockett, Jr. Formerly Resided and Practiced in Mineral Wells and McAllen, Texas
AMARILLO — Edgar A Lockett, Jr., was sentenced this morning by U.S. District Judge Mary Lou Robinson to serve 45 months in federal prison and three years of supervised release following his conviction at trial in September 2013 on six felony tax evasion charges, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Lockett must pay restitution that amounts to interest and penalty and taxes that are definitively determined or adjudicated to be the losses resulting from the crimes of conviction.
After a four-day trial, before U.S. District Judge Mary Lou Robinson, a federal jury in Amarillo, Texas, convicted Edgar A Lockett, Jr., on all six counts of the indictment charging tax evasion.
The government presented evidence at trial that Lockett is a self-employed anesthesiologist who currently resides in Amarillo; he formerly resided and practiced in other cities in Texas, including Mineral Wells and McAllen. Lockett most recently billed under the name of Medical & Health Alliance Ministries.
According to evidence the government presented, Lockett has not filed income tax returns since 1999, except for a joint return filed with his spouse for tax year 2007. He owes the United States $1,432,740 in unpaid income taxes for tax years 2000 through 2010.
The government presented further evidence that Lockett concealed from the IRS the nature, extent and location of his assets by placing funds and property in the names of nominee companies and secreting his income in bank accounts that he opened using his deceased father’s name and social security number.
The investigation was conducted by IRS Criminal Investigation.
Alcoa World Alumina Agrees to Plead Guilty to<br /> Foreign Bribery and Pay $223 Million in Fines and ForfeitureRead the Press Release
Alcoa World Alumina LLC, a majority-owned and controlled global alumina sales company of Alcoa Inc., has agreed to plead guilty later today and pay $223 million in criminal fines and forfeiture to resolve charges that it paid millions of dollars in bribes through an international middleman in London to officials of the Kingdom of Bahrain, in violation of the Foreign Corrupt Practices Act (FCPA).
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney David J. Hickton of the Western District of Pennsylvania, Chief Richard Weber of IRS—Criminal Investigation (IRS-CI), and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
“Alcoa World Alumina today admits to its involvement in a corrupt international underworld in which a middleman, secretly held offshore bank accounts, and shell companies were used to funnel bribes to government officials in order to secure business,” said Acting Assistant Attorney General Raman. “The law does not permit companies to avoid responsibility for foreign corruption by outsourcing bribery to their agents, and, as today’s prosecution demonstrates, neither will the Department of Justice.”
“Today’s case shows that multinational corporations cannot get away with using middlemen to structure sham business arrangements that funnel kickbacks to government officials,” said U.S. Attorney Hickton.
Alcoa World Alumina has agreed to plead guilty in the Western District of Pennsylvania to one count of violating the anti-bribery provisions of the FCPA in connection with a 2004 corrupt transaction, to pay a criminal fine of $209 million, and to administratively forfeit $14 million. As part of the plea agreement, Alcoa Inc. (Alcoa) has agreed to maintain and implement an enhanced global anti-corruption compliance program.
In a parallel action, Alcoa settled with the U.S. Securities and Exchange Commission (SEC) and will pay an additional $161 million in disgorgement, bringing the total amount of U.S. criminal and regulatory penalties to be paid by Alcoa and Alcoa World Alumina to $384 million.
“This case is the result of unraveling complex financial transactions used by Alcoa World Alumina LLC’s agent to facilitate kickbacks to foreign government officials,” said Chief Richard Weber of IRS-CI. “IRS-CI will not be deterred by the use of sophisticated international financial transactions as we continue our ongoing efforts to pursue corporations and executives who use hidden offshore assets and shell companies to circumvent the law.”
“Corrupt kickback payments to foreign government officials to obtain business diminish public confidence in global commerce,” said Assistant Director in Charge Parlave. “There is no place for bribery in any business model or corporate culture. Today’s plea demonstrates the FBI and our law enforcement partners are committed to curbing corruption and will pursue all those who try to advance their businesses through bribery.”
Today’s court filings allege that Alcoa of Australia, another Alcoa-controlled entity, originally secured a long-term alumina supply agreement with Aluminium Bahrain B.S.C. (Alba), an aluminium smelter controlled by the government of Bahrain. At the request of certain members of Bahrain’s Royal Family who controlled the tender process, Alcoa of Australia inserted a London-based middleman with close ties to certain Royal Family members as a sham sales agent and agreed to pay him a corrupt commission intended to conceal bribe payments, according to court papers. Over time, Alcoa of Australia expanded the relationship with the middleman, identified as Consultant A in today’s court filings, to begin invoicing increasingly larger volumes of alumina sales through his shell companies, which permitted Consultant A to make larger bribe payments to certain government officials, according to today’s filings.
As admitted in the charging documents, in 2004, Alcoa World Alumina corruptly secured a long-term alumina supply agreement with Alba by agreeing to purportedly sell over 1.5 million metric tons of alumina to Alba through offshore shell companies owned by Consultant A. The sham distributorship permitted Consultant A to mark up the price of alumina by approximately $188 million from 2005 to 2009, the duration of the corrupt supply agreement. Court filings allege that Consultant A used the mark-up to pay tens of millions in corrupt kickbacks to Bahraini government officials, including senior members of Bahrain’s Royal Family. To conceal the illicit payments, Consultant A and the government officials used various offshore bank accounts, including accounts held under aliases, at several major financial institutions around the world, including in Guernsey, Luxembourg, Liechtenstein and Switzerland.
In addition to the monetary penalty, Alcoa and Alcoa World Alumina agreed to cooperate with the department in its continuing investigation of individuals and institutions involved in these matters.
The plea agreement and related court filings acknowledge Alcoa’s current financial condition as a factor relevant to the size of the criminal fine, as well as Alcoa’s and Alcoa World Alumina’s extensive cooperation with the department, including conducting an extensive internal investigation, making proffers to the government, voluntarily making current and former employees available for interviews, and providing relevant documents to the department. Court filings also acknowledge subsequent anti-corruption remedial efforts undertaken by Alcoa.
The department acknowledges and expresses its appreciation for the cooperation and assistance of the Office of the Attorney General of Switzerland, the Guernsey Financial Intelligence Service and Guernsey Police, the Australian Federal Police, the U.K.’s Serious Fraud Office, and other law enforcement authorities in the department’s investigation of this matter. The department also acknowledges and expresses its appreciation for the significant assistance provided by the SEC’s Division of Enforcement.
The investigation is being conducted by Special Agents and analysts with the IRS-Criminal Investigation’s Washington Field Office and the FBI’s Washington Field Office. The case is being prosecuted by Deputy Chief Adam G. Safwat and Trial Attorneys Andrew Gentin, Allan J. Medina and Andrew H. Warren of the Criminal Division’s Fraud Section, with the assistance of the U.S. Attorney’s Office for the Western District of Pennsylvania. The Criminal Division’s Office of International Affairs also provided significant assistance during this investigation.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa .Alcoa World Alumina Agrees to Plead Guilty to Foreign Bribery and Pay $223 Million in Fines and ForfeitureRead the Press Release
WASHINGTON – Alcoa World Alumina LLC, a majority-owned and controlled global alumina sales company of Alcoa Inc., has agreed to plead guilty later today and pay $223 million in criminal fines and forfeiture to resolve charges that it paid millions of dollars in bribes through an international middleman in London to officials of the Kingdom of Bahrain, in violation of the Foreign Corrupt Practices Act (FCPA).
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney David J. Hickton of the Western District of Pennsylvania, Chief Richard Weber of IRS—Criminal Investigation (IRS-CI), and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
“Alcoa World Alumina today admits to its involvement in a corrupt international underworld in which a middleman, secretly held offshore bank accounts, and shell companies were used to funnel bribes to government officials in order to secure business,” said Acting Assistant Attorney General Raman. “The law does not permit companies to avoid responsibility for foreign corruption by outsourcing bribery to their agents, and, as today’s prosecution demonstrates, neither will the Department of Justice.”
“Today’s case shows that multinational corporations cannot get away with using middlemen to structure sham business arrangements that funnel kickbacks to government officials,” said U.S. Attorney Hickton.
Alcoa World Alumina has agreed to plead guilty in the Western District of Pennsylvania to one count of violating the anti-bribery provisions of the FCPA in connection with a 2004 corrupt transaction, to pay a criminal fine of $209 million, and to administratively forfeit $14 million. As part of the plea agreement, Alcoa Inc. (Alcoa) has agreed to maintain and implement an enhanced global anti-corruption compliance program.
In a parallel action, Alcoa settled with the U.S. Securities and Exchange Commission (SEC) and will pay an additional $161 million in disgorgement, bringing the total amount of U.S. criminal and regulatory penalties to be paid by Alcoa and Alcoa World Alumina to $384 million.
“This case is the result of unraveling complex financial transactions used by Alcoa World Alumina LLC’s agent to facilitate kickbacks to foreign government officials,” said Chief Richard Weber of IRS-CI. “IRS-CI will not be deterred by the use of sophisticated international financial transactions as we continue our ongoing efforts to pursue corporations and executives who use hidden offshore assets and shell companies to circumvent the law.”
“Corrupt kickback payments to foreign government officials to obtain business diminish public confidence in global commerce,” said Assistant Director in Charge Parlave. “There is no place for bribery in any business model or corporate culture. Today’s plea demonstrates the FBI and our law enforcement partners are committed to curbing corruption and will pursue all those who try to advance their businesses through bribery.”
Today’s court filings allege that Alcoa of Australia, another Alcoa-controlled entity, originally secured a long-term alumina supply agreement with Aluminium Bahrain B.S.C. (Alba), an aluminium smelter controlled by the government of Bahrain. At the request of certain members of Bahrain’s Royal Family who controlled the tender process, Alcoa of Australia inserted a London-based middleman with close ties to certain Royal Family members as a sham sales agent and agreed to pay him a corrupt commission intended to conceal bribe payments, according to court papers. Over time, Alcoa of Australia expanded the relationship with the middleman, identified as Consultant A in today’s court filings, to begin invoicing increasingly larger volumes of alumina sales through his shell companies, which permitted Consultant A to make larger bribe payments to certain government officials, according to today’s filings.
As admitted in the charging documents, in 2004, Alcoa World Alumina corruptly secured a long-term alumina supply agreement with Alba by agreeing to purportedly sell over 1.5 million metric tons of alumina to Alba through offshore shell companies owned by Consultant A. The sham distributorship permitted Consultant A to mark up the price of alumina by approximately $188 million from 2005 to 2009, the duration of the corrupt supply agreement. Court filings allege that Consultant A used the mark-up to pay tens of millions in corrupt kickbacks to Bahraini government officials, including senior members of Bahrain’s Royal Family. To conceal the illicit payments, Consultant A and the government officials used various offshore bank accounts, including accounts held under aliases, at several major financial institutions around the world, including in Guernsey, Luxembourg, Liechtenstein and Switzerland.
In addition to the monetary penalty, Alcoa and Alcoa World Alumina agreed to cooperate with the department in its continuing investigation of individuals and institutions involved in these matters.
The plea agreement and related court filings acknowledge Alcoa’s current financial condition as a factor relevant to the size of the criminal fine, as well as Alcoa’s and Alcoa World Alumina’s extensive cooperation with the department, including conducting an extensive internal investigation, making proffers to the government, voluntarily making current and former employees available for interviews, and providing relevant documents to the department. Court filings also acknowledge subsequent anti-corruption remedial efforts undertaken by Alcoa.
The department acknowledges and expresses its appreciation for the cooperation and assistance of the Office of the Attorney General of Switzerland, the Guernsey Financial Intelligence Service and Guernsey Police, the Australian Federal Police, the U.K.’s Serious Fraud Office, and other law enforcement authorities in the department’s investigation of this matter. The department also acknowledges and expresses its appreciation for the significant assistance provided by the SEC’s Division of Enforcement.
The investigation is being conducted by Special Agents and analysts with the IRS-Criminal Investigation’s Washington Field Office and the FBI’s Washington Field Office. The case is being prosecuted by Deputy Chief Adam G. Safwat and Trial Attorneys Andrew Gentin, Allan J. Medina and Andrew H. Warren of the Criminal Division’s Fraud Section, with the assistance of the U.S. Attorney’s Office for the Western District of Pennsylvania. The Criminal Division’s Office of International Affairs also provided significant assistance during this investigation.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Albuquerque Man Sentenced to More Than Fifteen Years in Federal Prison for Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Maximiliano Cordova, 20, of Albuquerque, N.M., was sentenced this afternoon to 188 months in federal prison followed by a lifetime of supervised release for his child pornography conviction. Cordova also was ordered to pay $500 to the identified victim in his count of conviction. The sentence was announced by Acting U.S. Attorney Steven C. Yarbrough and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division.
Cordova was arrested by the FBI on May 6, 2013, on a criminal complaint alleging that he distributed, received and possessed visual depictions of minors engaged in sexually explicit conduct. Cordova subsequently was indicted and charged with two counts of distribution of child pornography, two counts of receipt of child pornography, and one count of possession of child pornography.
The investigation leading to Cordova’s arrest was initiated in mid Jan. 2013, after an FBI agent who was working in an undercover capacity in New Jersey signed onto a publicly available peer-to-peer (P2P) file sharing network that was being used by individuals who were sharing child pornography images. The agent learned that one of the individuals sharing child pornography images on the P2P network was using an IP Address subscribed to Cordova’s residential address. On May 3, 2013, the FBI executed a search warrant at Cordova’s residence.
While executing the search warrant, FBI agents observed a laptop computer on Cordova’s bed that was running and displaying information for the P2P network that was used for sharing child pornography. The FBI seized the laptop computer, other computers and other computer-related media from Cordova’s residence. A forensic of the laptop computer confirmed that it contained child pornography images.
On Oct. 1, 2013, Cordova entered a guilty plea to one count of distribution of child pornography. In his plea agreement, Cordova admitted that he had been using a file sharing program to distribute, receive and possess child pornography for approximately six months prior to his arrest. Cordova also acknowledged that a forensic examination of his computers and computer-related media revealed that Cordova possessed more than 1000 child pornography images and videos.
This case was investigated by FBI and the New Mexico Regional Forensic Lab, and was prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga. It was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Albuquerque Man Sentenced to Five Years in Prison and a Lifetime of Supervised Release for Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – William Winzenburg, Jr., 28, of Albuquerque, N.M., was sentenced this afternoon to five years in federal prison followed by a lifetime of supervised release for his child pornography conviction.
Winzenburg was arrested on Feb. 7, 2013 on a criminal complaint and has been in federal custody since his arrest. Winzenburg subsequently was indicted in March 2013, and charged with two counts of receiving visual depictions of minors engaged in sexually explicit conduct and two counts of possession of a visual depiction of minors engaged in sexually explicit conduct.
Court records reveal that the investigation into Winzenburg was initiated in Nov. 2013 after the Bernalillo County Sheriff’s Office (BCSO) received information from the National Center for Missing and Exploited Children that a specific IP address was being used to receive child pornography. On Feb. 7, 2013, after determining that the IP address was subscribed to Winzenburg, the FBI and BCSO executed a search warrant at Wenzenburg’s residence and seized computers and computer-related media which contained child pornography.
On Oct. 1, 2013, Winzenburg entered a guilty plea to Count 1 of the indictment, charging him with receipt of child pornography. In his plea agreement, Winzenburg admitted that he voluntarily participated in a recorded interview with the FBI and BCSO on Feb. 7, 2013, during which he admitted downloading child pornography images and videos from the Internet.
The case was investigated by the FBI, BCSO and the New Mexico Regional Computer Forensic Laboratory, and was prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga. It was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Albuquerque Man Pleads Guilty to Distributing Child PornographyRead the Press Release
ALBUQUERQUE – John A. Crowe, 54, of Albuquerque, N.M., pleaded guilty this morning to distribution of visual depictions of minors engaged in sexually explicit conduct. Under the terms of his plea agreement, Crowe will be sentenced to a prison term of not less than ten years and not more than 15 years to be followed by a term of supervised release to be determined by the Court. Crowe will be required to register as a sex offender after he completes his prison sentence.
The guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas, and Chief Pete N. Kassetas of the New Mexico State Police (NMSP).
Crowe was arrested in May 28, 2011, on a criminal complaint charging him with transportation and possession of child pornography, and has been in federal custody since that time. In June 2011, Crowe was indicted on child pornography charges. A superseding indictment was filed in July 2012, charging Crowe with advertising child pornography in March 2011, transportation of child pornography in Nov. 2010; distribution of child pornography on two occasions in March 2011, and possession of child pornography from April 2011 to May 2011. The indictment alleged that Crowe committed these offenses in Bernalillo County, N.M.
According to court filings, the investigation leading to Crowe’s arrest began in March 2011, when an officer with the Online Predator Unit of the New Mexico State Police (NMSP) identified an IP address that was being used to share files containing child pornography while conducting an investigation targeting those who share child pornography on peer-to-peer file sharing networks. Subsequent investigation revealed that the IP address was subscribed to Crowe at a residential address in west side of Albuquerque.
On May 26, 2011, HSI and the NMSP executed a search warrant at Crowe’s residence seized a computer and computer-related media. During a recorded interview that day, Crowe admitted using his computer to search for and download child pornography. A subsequent forensic examination of the computer and computer-related media revealed that they contained images and videos of child pornography, including videos of minor females who appeared to be filmed by a hidden camera located in a bathroom and a bedroom of a residence. During a recorded interview on May 28, 2011, Crowe admitted that he recorded the videos using a video-camera when he lived in Alabama and Georgia and that the minor females were daughters of former girlfriends who were not aware that he was filming them as they undressed. Crowe acknowledged bringing the child pornography with him when he moved to New Mexico in Nov. 2010.
Today, Crowe pled guilty to Count 6 of the superseding indictment charging him with distribution of child pornography, and admitted distributing an image of child pornography on March 12, 2011. Crowe remains in custody pending his sentencing hearing, which has yet to be scheduled.This case was investigated by the Albuquerque office of HSI and the NMSP and is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Alabama Man Indicted for First Degree Murder in Fort Stewart SlayingRead the Press Release
SAVANNAH, GA – An indictment was returned today by a federal grand jury sitting in Savannah, Georgia, charging CARL EVAN SWAIN, aka “COWBOY,” 43, a resident of Alabama, with first degree murder in the beating death of Specialist John Joseph Beans Eubank, 29, on November 30, 2013, on Fort Stewart. Federal law provides that a murder occurring within the special maritime and territorial jurisdiction of the United States is a federal crime. Fort Stewart lies within the territorial jurisdiction of the United States.
United States Attorney Edward Tarver stressed that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being investigated by the Federal Bureau of Investigation. Assistant U. S. Attorneys Cameron Heaps Ippolito, Karl I. Knoche, and Tania D. Groover are prosecuting the case on behalf of the United States.Akron Woman Sentenced for Filing False Tax ReturnsRead the Press Release
Kelly Prigmore was sentenced to prison for one day, followed by two years of supervised release, with the first ten months subject to location-monitored home confinement, for her August 2013 conviction for filing false income tax returns, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The sentence was imposed by United States District Judge Benita Y. Pearson, in Youngstown, Ohio. Prigmore was taken into immediate custody shortly before noon, to be released at the end of the following afternoon.
Prigmore, age 43, is a resident of Akron, Ohio, according to court records.
Judge Pearson, who presided over the trial without a jury, also ordered Prigmore to provide 192 hours of community service on a schedule of eight hours per week spread out over six of the ten months of home confinement. The Court also directed Prigmore to undergo mental health treatment and prohibited her from engaging in any gambling activities or from entering any gambling establishments during her supervision. The Court also gave the supervising probation officer discretion to require Prigmore to enter a gambling treatment program. The Court further ordered Prigmore to cooperate with the IRS in the payment of her unpaid taxes.
Prigmore was convicted after a two-day trial last August of filing false income tax returns for 2006 and 2007, on which she failed to report over $200,000 of income she earned as a self-employed provider of home health care. Evidence at trial revealed that Prigmore went to H&R Block to prepare and electronically file her joint income returns for those years. She caused the returns to list her occupation as a homemaker and to report that she and her husband were a low income family entitled to an Earned Income Credit and resulting tax refund each year.
For 2006, she reported total income of $8,600 and omitted additional income of approximately $96,686. For 2007, she reported total income of $8,990 and omitted additional income of approximately $112,795, according to evidence at trial.
The case was prosecuted by Assistant U.S. Attorney John M. Siegel and former Special Assistant U.S. Attorney Perry D. Mastrocola, following an investigation by the Internal Revenue Service, Criminal Investigation, Akron, Ohio.
28.3 Million!Read the Press Release
MONTANA UNITED STATES ATTORNEY'S OFFICE COLLECTS $28.3 MILLION IN CIVIL & CRIMINAL ACTIONS FOR U.S. TAXPAYERS IN FISCAL YEAR 2013
U.S. Attorney Michael W. Cotter announced today that the Montana United States Attorney's Office collected $28.3 million in Fiscal Year (FY) 2013 related to criminal and civil actions in cases handled by the Montana United States Attorney's Office. In some cases, the U.S. Attorney's Office worked in conjunction with litigating components of the U.S. Department of Justice. (During this time of budgetary uncertainty, these collections are more important than ever,( said U.S. Attorney Michael W. Cotter. (The U.S. Attorney(s Office is dedicated to protecting the public and recovering funds for the federal treasury and for victims of federal crime. We will continue to hold accountable civil and criminal wrongdoers who seek to profit from their illegal activities.(
The U.S. Attorneys( Offices, along with the department(s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and to federal crime victims. Generally, these debts are judgments, either civil judgments or criminal judgments entered by the federal court. Criminal judgments consist of fines and restitution. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the department(s Crime Victims( Fund, which distributes the funds to state victim compensation and victim assistance programs.
Occasionally, assets from criminals are forfeited by court action. Forfeiture proceeds are often distributed back to local law enforcement to assist them in the protection of Montana communities or to the victims of crime. Forfeited assets include currency or bank accounts, real property and cars purchased with illegal proceeds or used to facilitate crimes, guns held by convicted felons, and computers used for child pornography. Seized property is sold and the money deposited into the government accounts used to restore money lost by crime victims.
Those who regularly follow the news are aware of the function of the United States Attorney's Office (USAO) regarding federal criminal prosecution. Equally important, but perhaps not as well known, is the mission, function and success of the Montana USAO in recovering money for the benefit of victims of crime and the U.S. Treasury. This critical mission is accomplished in large part by the Financial Litigation Unit (FLU). The unit is led by a career federal litigator, Assistant U.S. Attorney Victoria Francis of Billings, who is supported by two paralegal specialists who handle over 1400 active cases. The FLU collects criminal restitution, fines, and penalties ordered to be paid to federal agencies when federal programs are defrauded.
In addition the FLU Unit helps federal prosecutors identify and forfeit assets that represent the proceeds of or that were used to facilitate federal crimes.
Across the country, the United States Attorneys' offices collected $8.1 billion from criminal and civil actions during 2013, which is far more than the appropriated budget of the combined 93 USAOs offices for that year. Collections in Montana totaled more than $28.3 million for 2013, more than five times the annual operating budget for Montana's U.S. Attorney's Offices. The U.S. Attorney's Office in Montana is credited with collecting $2 million in relation to criminal actions brought by the office, $20.5 million in relation to civil actions, and $5.8 million in criminal and civil forfeiture cases.
U.S. Attorney Cotter noted that "budget sequestration bites deeply into the operations of the Montana USAO. The Montana USAO currently has an employee vacancy of rate of roughly 25%. Cutting the budgets of United States Attorneys' offices through sequester effectively reduces government revenue. There are simply fewer lawyers and support personnel to accomplish the overall mission of the Department of Justice, including the ability to collect fines, money owed to the government and restitution for crime victims. Therefore, shortages of personnel and restrictions on litigation-related expenditures are expected to affect the USAO ability to collect funds due the United States."
The efforts of this office to serve the people of Montana will continue. Reduced resources will make it more difficult to maintain the same level of service for law enforcement protection, for public safety or the protection of the public purse. But this office is committed to maintaining the highest ideals of public trust and public service despite those challenges." --- U.S. Attorney Mike Cotter.
-Defendant Sold Stolen Equipment to Pawn Shops-Read the Press Release
Former Employee Pleads Guilty to Stealing
More Than $26,000 from Naval Research LaboratoryWASHINGTON – Joyce Dawn Ferrell, 42, a former secretary at the Naval Research Laboratory, pled guilty today to stealing more than $26,000 in equipment from her employer and then selling the items to pawn shops, U.S. Attorney Ronald C. Machen Jr. announced.
Ferrell, of Indian Head, Md., pled guilty in the U.S. District Court for the District of Columbia to a charge of theft of government property. The Honorable Rudolph Contreras scheduled sentencing for April 7, 2014. The charge carries a statutory maximum of 10 years in prison and financial penalties. Under federal sentencing guidelines, the parties have agreed that the likely range is a sentence of up to six months of incarceration and a fine of up to $10,000. As part of the plea agreement, Ferrell has agreed to pay $26,029 in restitution to the Naval Research Laboratory. She also has agreed to a forfeiture money judgment, also of $26,029.
According to the government’s evidence, Ferrell was a secretary in the Optical Sciences Division of the Naval Research Laboratory in the District of Columbia. In July 2012, she took responsibility for making authorized purchases with her government-wide commercial purchase card. Starting that month, and continuing until about May 2013, she made a number of unauthorized purchases with the card at the Naval Research Laboratory’s commissary. Among other things, she bought computer equipment, drills, and thermal imagers. She then sold these items to pawn shops in Virginia and Maryland. In an effort to cover up her activities, Ferrell submitted falsified order forms to her supervisors at the Naval Research Laboratory.
In announcing the plea, U.S. Attorney Machen commended the work of the Naval Criminal Investigative Service, which investigated the case. He also expressed appreciation for the assistance provided by the Metropolitan Police Department (MPD), and he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Intelligence Specialist Sharon Johnson and Paralegal Specialists Donna Galindo and Shanna Hays. Finally, he thanked Assistant U.S. Attorney Catherine K. Connelly, who assisted with forfeiture issues, and Assistant U.S. Attorney Phil Selden, who is prosecuting the case.
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8 January 2014
Wayne Co. Felon Sentenced to 2 Years in Federal Prison for Illegal Possession of A FirearmRead the Press Release
CHARLESTON, W.Va. – A Wayne County felon who illegally possessed a firearm was sentenced today to two years in federal prison, U.S. Attorney Booth Goodwin announced. Keith Brian Clark, 47, of East Lynn, W.Va., previously pleaded guilty in October 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 June 18, 2012, Clark illegally possessed a 9-millimeter pistol near Harts, Lincoln County, W.Va. Clark was previously convicted in August 2004 of second degree robbery in the Circuit Court of Wayne County. The defendant did not have his rights to possess a firearm restored.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Haley Bunn handled the prosecution.
This case was brought 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.Wanblee Woman Sentenced for Drug ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota, woman convicted of conspiracy to distribute more than 1 kilogram of marijuana was sentenced on January 2, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
This case was investigated as part of Operation Eagle Eye, a controlled substances investigation conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Anita Lucine Brown, age 59, was sentenced to 1 year probation and a $100 special assessment to the Federal Crime Victims Fund.
Brown was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on July 24, 2012. She pled guilty on October 4, 2013.
Between May 2010 and July 2012, the defendant’s sons sold marijuana from her home. Brown was given marijuana for allowing them to use her home, wherein more than 1 kilogram of marijuana was distributed.
United States Attorney's Office Says Goodbye to Forensic Financial AuditorRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced the retirement of Kathy T. Penfield, financial auditor, who served in the Western District of Louisiana for 22 years. Penfield was honored on Tuesday, January 7, 2014, at a retirement ceremony held at the U.S. Courthouse in Shreveport. Her last day with the office was December 31, 2013.
“We are losing a talented expert forensic auditor and public servant,” Finley stated. “Throughout her career, Ms. Penfield played an integral role in prosecuting cases with our office. Her years of service and dedication to the Department of Justice are a true testament of her commitment to justice and the citizens of this district. She will be greatly missed, and we wish her the very best as she starts the next chapter of her life. I am grateful for her tireless advocacy on behalf of the Western District.”
Penfield joined the U.S. Attorney’s Office for the Western District of Louisiana on November 12, 1991 as a forensic financial auditor assigned to the Criminal Division. During her 22 years with the office, Penfield provided expert forensic auditing and accounting services in investigations by determining whether there were violations of federal statutes such as bank fraud, money laundering, securities fraud, commodities fraud, Racketeer Influenced Corrupt Organization (RICO), mail fraud, and more. She focused her work on tracking complex financial transactions. Her work was used by federal prosecutors to convict many high profile defendants, including corrupt public officials. Penfield has worked with numerous federal agencies, including the Federal Bureau of Investigation, Internal Revenue Service, U.S. Drug Enforcement Administration, U.S. Department of Homeland Security, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Among her numerous awards and citations, Penfield received a letter of commendation from the Director of the FBI for her work on two very complex cases, received multiple recognitions from regional FBI offices for her forensic fraud examinations, and was a recipient of the 2007 and 2008 awards from the Organized Crime Drug Enforcement Task Forces, Southeast Region, for her service in the Western District of Louisiana.
Penfield graduated Summa Cum Laude in 1981 from Centenary College in Shreveport receiving a bachelor’s degree in accounting. She is a certified public accountant, a certified fraud examiner, past president of the local chapter of the Association of Certified Fraud Examiners, and is certified by the American Institute of CPAs in Financial Forensics. She is a 25-plus year member of the Louisiana Society of CPAs and the American Institute of Certified Public Accountants. Kathy Penfield is married to Jim Penfield, her husband of 42 years.
L to R: Kathy Penfield and U.S. Attorney Stephanie Finley
U.S. Attorney’s Office to Co-Sponsor Diversity Forum in Commemoration of Dr. Martin Luther King Jr.’s Birthday-Jan. 15 Program Is Tailored for Civic, Non-Profit and Community Leaders-Read the Press Release
WASHINGTON – The U.S. Attorney’s Office for the District of Columbia is joining the District of Columbia government and other partners to sponsor an upcoming forum for community and government leaders on diversity and criminal justice issues.
The free event, in commemoration of Dr. Martin Luther King Jr.’s birthday, will be from 8:30 a.m. until 4:30 p.m. on Jan. 15, 2014. The program will be held at the old District of Columbia Council chambers, 441 4th St. NW. The event is especially tailored for faith-based, civic, non-profit and community leaders and others who serve people in the District of Columbia.
The program, called “Protecting Our Diversity - a Criminal Justice Forum,” will focus on addressing criminal justice issues, including hate crimes that affect the various diverse communities and affinity groups in the District of Columbia. The program will be a unique opportunity for the community to come together to discuss the issues affecting civil rights and the ways that people and organizations can work together to understand and protect them.
U.S. Attorney Ronald C. Machen Jr. will deliver the keynote address. Panel discussions and speakers will cover topics such as factors in the designation of hate crimes; the impact of hate crimes and domestic violence on various communities and affinity groups;keeping houses of worship safe; the process involving visas for non-immigrant witnesses, and transgender issues.
Also, notable remarks and specialized knowledge will be shared by leaders and representatives in the fields that protect diversity, such as the Community Relations Service of the Department of Justice; the U.S. Department of Homeland Security, the FBI, the Metropolitan Police Department, and other local and national community organizations. Information tables from related organizations and agencies will also provide resources and materials.
The event is being organized by the U.S. Attorney’s Office for the District of Columbia, the Community Relations Service of the Department of Justice; the Washington, D.C. Regional Office of the Anti-Defamation League; the D.C. Hate-Bias Task Force; the District of Columbia Mayor’s Office on Gay, Lesbian, Bisexual and Transgender Affairs; D.C. Mayor’s Office on Asian and Pacific Islander Affairs; the Metropolitan Police Department; the FBI, Casa Ruby, and the American University Law School.
For more information, to RSVP, and/or request interpretative services or special accommodationsto attend“Protecting Our Diversity - a Criminal Justice Forum” please contact [email protected] or Melanie Howard at the U.S. Attorney’s Office at 202-252-6930. The program’s location is easily accessible via Metro’s Red Line stop at Judiciary Square.
14-003U.S. Attorney’s Office to Co-Sponsor Diversity Forum in Commemoration of Dr. Martin Luther King Jr.’s Birthday-Jan. 15 Program Is Tailored for Civic, Non-Profit and Community Leaders-Read the Press Release
WASHINGTON – The U.S. Attorney’s Office for the District of Columbia is joining the District of Columbia government and other partners to sponsor an upcoming forum for community and government leaders on diversity and criminal justice issues.
The free event, in commemoration of Dr. Martin Luther King Jr.’s birthday, will be from 8:30 a.m. until 4:30 p.m. on Jan. 15, 2014. The program will be held at the old District of Columbia Council chambers, 441 4th St. NW. The event is especially tailored for faith-based, civic, non-profit and community leaders and others who serve people in the District of Columbia.
The program, called “Protecting Our Diversity - a Criminal Justice Forum,” will focus on addressing criminal justice issues, including hate crimes that affect the various diverse communities and affinity groups in the District of Columbia. The program will be a unique opportunity for the community to come together to discuss the issues affecting civil rights and the ways that people and organizations can work together to understand and protect them.
U.S. Attorney Ronald C. Machen Jr. will deliver the keynote address. Panel discussions and speakers will cover topics such as factors in the designation of hate crimes; the impact of hate crimes and domestic violence on various communities and affinity groups;keeping houses of worship safe; the process involving visas for non-immigrant witnesses, and transgender issues.
Also, notable remarks and specialized knowledge will be shared by leaders and representatives in the fields that protect diversity, such as the Community Relations Service of the Department of Justice; the U.S. Department of Homeland Security, the FBI, the Metropolitan Police Department, and other local and national community organizations. Information tables from related organizations and agencies will also provide resources and materials.
The event is being organized by the U.S. Attorney’s Office for the District of Columbia, the Community Relations Service of the Department of Justice; the Washington, D.C. Regional Office of the Anti-Defamation League; the D.C. Hate-Bias Task Force; the District of Columbia Mayor’s Office on Gay, Lesbian, Bisexual and Transgender Affairs; D.C. Mayor’s Office on Asian and Pacific Islander Affairs; the Metropolitan Police Department; the FBI, Casa Ruby, and the American University Law School.
For more information, to RSVP, and/or request interpretative services or special accommodationsto attend“Protecting Our Diversity - a Criminal Justice Forum” please contact [email protected] or Melanie Howard at the U.S. Attorney’s Office at 202-252-6930. The program’s location is easily accessible via Metro’s Red Line stop at Judiciary Square.
14-003Two Sentenced for Fayetteville Taco Bell RobberiesRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that yesterday in federal court, United States District Judge Terrence W. Boyle sentenced William Franklin Byford, III, 33, of Bunnlevel, North Carolina to 171 months imprisonment followed by 3 years of supervised release and CRISTOPHER DEAN GILBERT , 24, of Fayetteville, North Carolina to 181 months imprisonment followed by 3 years of supervised release.
BYFORD and GILBERT pled guilty on October 3, 2013 to one count of Conspiracy to Interfere with Commerce by robbing four Taco Bell Restaurants in Fayetteville, in violation of Title 18, United States Code, Section 1951(b), and one count of Using, Carrying, and Brandishing a Firearm During and in Relation to a Crime of Violence and Aiding and Abetting, in violation of Title 18, United States Code, Sections 924(c)(1)(A), 924(c)(1)(A)(ii), and 2.
According to the investigation, BYFORD and GILBERT committed armed robberies of four Taco Bells in Fayetteville from October 18, 2012 through December 6, 2012. GILBERT had worked as a manager of a Taco Bell and was familiar with the day-to-day operations of the establishments. GILBERT committed the robberies while BYFORD, who was paralyzed and confined to a wheel chair, served as the get-away driver in a car that had been modified to be operated by hand. They equally divided the proceeds from the robberies.Investigation of this case was conducted by the Fayetteville Police Department, the Bureau of Alcohol, Tobacco, Firearms, & Explosives, and the Federal Bureau of Investigation. Assistant United States Attorney Dennis Duffy represented the government.
Two More Defendants Sentenced for Conspiring to Distribute Methamphetamine in the Treasure ValleyRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today that Darin James Bangham, 40, of Star, Idaho, and co-defendant, Ashley Marie Armstrong, 27, of Kuna, Idaho, were sentenced this week for conspiracy to distribute methamphetamine.
Chief U.S. District Judge B. Lynn Winmill sentenced Bangham this morning to 87 months in prison followed by five years of supervised release for conspiracy to distribute 500 grams or more of methamphetamine. He pleaded guilty to the charge on October 21, 2013. Judge Winmill also ordered Bangham to forfeit $100,000 in proceeds of the offense and $18,400 in seized currency.
Armstrong was sentenced on Monday to 51 months in prison followed by three years of supervised release for conspiracy to distribute methamphetamine. She pleaded guilty to the charge on October 16. Armstrong was also ordered to forfeit her interest in the seized $18,400, as well as $10,000 in proceeds of the offense.
According to court proceedings, Bangham and Armstrong conspired with others to distribute methamphetamine in the Treasure Valley. The government argued at sentencing that this conspiracy was responsible for the distribution of approximately 130 pounds of high purity methamphetamine between October 2012 and April 2013.
Two co-defendants from Eagle, Idaho, were sentenced in December 2013 to serve lengthy prison sentences: Samantha Jo Tackitt was sentenced to 151 months in prison for conspiracy to distribute 500 grams or more of methamphetamine; Michael Scott Longhi was sentenced to 188 months in prison. Tackitt and Longhi were each ordered to forfeit $18,400 of seized currency and $100,000 in cash proceeds to the United States.
The remaining defendant, Ausencio Gonzalez Tovar, 48, of Eagle, will be sentenced on February 3, 2014, for possession with intent to distribute 500 grams or more of methamphetamine.
The case was investigated by the Ada County Sheriff’s Office, Meridian Police Department, and Drug Enforcement Administration.
Two Men Charged Federally for Marijuana Deal that turned DeadlyRead the Press Release
Two south King County men on opposite sides of a drug deal gone bad have been indicted by a federal grand jury in Seattle, announced U.S. Attorney Jenny A. Durkan. DAVID ROSS, 35, of Renton is charged with three federal felonies: conspiracy to distribute marijuana, possession of a firearm in furtherance of a drug trafficking crime and unlawful possession of a firearm. LENNY BRIKN, JR, 19, of Federal Way is charged with five federal felonies in connection with the October 17, 2013 incident: conspiracy to commit robbery, attempted robbery, attempted possession of marijuana with intent to distribute, possession of a firearm in furtherance of a crime of violence and a drug trafficking crime and possession of a stolen firearm.
“This case is a clear reminder that drugs and guns are a deadly mix and an appropriate target for federal prosecution,” said U.S. Attorney Jenny A. Durkan. “The violent conduct in this case could have resulted in injuries or death to innocent bystanders. Working closely with the King County Prosecutors Office we determined federal laws are the best tool to hold these men accountable.”
According to the records filed in King County Superior Court as well as the indictment, ROSS and an associate arrived at a Federal Way apartment complex to sell marijuana to two men – BRIKN and his brother, Deshawn Boykin. ROSS was armed with a gun, despite having two previous felony drug convictions that prohibit him from possessing a firearm. BRIKN and Boykin drew “Mac 10” style semi-automatic pistols, ordered ROSS and his associate to lie on the ground, and attempted to rob them of the marijuana they brought to the drug deal. BRIKN and Boykin ultimately ran away, and ROSS drew his gun and fired multiple times at the fleeing men. Boykin was hit twice and died of his wounds at St. Francis Medical Center.
ROSS was originally charged in King County Superior Court. BRIKN was charged in King County Superior Court with an unrelated robbery in December 2013. Both men will be brought to U.S. District Court in Seattle for arraignment later this month.
ROSS is charged with discharging a firearm in furtherance of a drug trafficking crime, which carries a mandatory minimum ten year sentence in addition to any other sentence imposed in the case. BRIKN is charged with brandishing a firearm in furtherance of a crime of violence and a drug trafficking crime, which carries a mandatory minimum seven year sentence in addition to any other sentence imposed in the case.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Federal Way Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Twenty-two People Charged in Ongoing “Operation Corridor” Investigation of North County Gang ActivityRead the Press Release
SAN DIEGO – Twenty-two people, including suspected drug traffickers and associates of the Mexican Mafia prison gang, are charged in numerous indictments and complaints unsealed today with crimes ranging from racketeering conspiracy to heroin and methamphetamine dealing.
The indictments are the result of “Operation Corridor,” a continuing investigation involving a team of federal, state, and local agencies focusing on the activities of the Mexican Mafia operating in the Southern District of California. So far the investigation has resulted in the charging of 68 people since April 2012.
In all, five indictments and three complaints were unsealed today. The main indictment charges 11 people with participating in a racketeering conspiracy that involved the commission of both state and federal crimes, including conspiracy to commit murder, assault with a deadly weapon, extortion, money laundering and drug trafficking violations.
The indictments were handed up by a federal grand jury in San Diego on December 19, 2013. As of today, 18 of the twenty-two defendants are either in federal or state custody. Six were arrested today and yesterday; the rest were already in custody.
As set forth in the indictments, most of the defendants are associates of the Mexican Mafia operating primarily in Oceanside and Vista, California, and multiple San Diego Sheriff’s Office Detention Facilities and California State Prisons, including Donovan, Centinela and Ironwood.
Using electronic surveillance, intercepted phone lines and other sophisticated tools, this continuing investigation targeted a broad criminal conspiracy to extort money and control the illegal narcotics trade in both north San Diego County and various California State Prisons. The investigation is ongoing.
"We will continue to target gangs operating on the streets of our communities in conjunction with associates operating in jails and prisons,” said U.S. Attorney Laura Duffy. “Their criminal behavior will not be tolerated. Along with our state and local partners, we will continue to tirelessly pursue them at every level. I commend the efforts of all involved and appreciate their hard work and commitment to bringing these criminals to justice."
United States Attorney Duffy praised the North County Regional Gang Task Force (NCRGTF) for the coordinated team effort in the culmination of this investigation. Agents and officers from the Federal Bureau of Investigation, San Diego County Sheriff's Office, Oceanside Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the California Department of Corrections and Rehabilitation, Bureau of Prisons, Homeland Security Investigations. U.S. Marshals Service, California Highway Patrol, and the Escondido and Carlsbad Police Departments collaborated on this investigation.
The investigation was conducted in conjunction with the Organized Crime Drug Enforcement Task Force. The OCDETF program was created to consolidate and utilize all law enforcement resources in this country's battle against organized crime and major drug trafficking organizations.
“The collaboration between federal and local law enforcement in San Diego is unparalleled, and Operation Corridor is a fine example of utilizing our strategic law enforcement partnerships to combat an increasingly dangerous fusion of violent gangs and organized crime,” said Derek Benner, special agent in charge for ICE’s Homeland Security Investigations in San Diego. “With dozens of violent street gang members and associates off the streets, we have delivered on our commitment to public safety so that the law abiding people living and working in our neighborhoods are safe.”
DEFENDANTS
Criminal Case No. 13CR4514-BEN Leonard Delgado, aka Spanky
Steven Amador, aka Insane
Isaac Ballesteros, aka Lazy
Julio Rodriguez, aka Sniper
Roberto Sotelo, aka PoPo, Top Hat
Ruben Savala, aka Boxer
Robert Collazao, aka Weasel
George Garibay, aka Scooby
Rachel Morales, aka Rachel Ruvalcaba
Margaret Cano
Angelica Ibanez SUMMARY OF CHARGESConspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity, in violation of Title 18, United States Code, Section 1962(d) ; Conspiracy to Distribute Methamphetamine and Heroin, in violation of Title 21, United States Code, Sections 841 and 846. Maximum Penalties: Life in prison.
In addition to the RICO portion of “Operation Corridor,” 11 defendants were charged in six related cases for various drug trafficking and firearm offenses. Those cases and defendants include:
DEFENDANTS
Criminal Case No. 13CR4512-BEN Luis Cuevas, aka Youngster
Helen Robles SUMMARY OF CHARGESConspiracy to Possess with Intent to Distribute Heroin. Maximum Penalties: 20 years in Custody and $1 million fine.
DEFENDANTS
Criminal Case No. 13CR4513-BEN Priscilla Lopez, aka Gata
Eva Madueno, aka Shady SUMMARY OF CHARGESConspiracy to Possess with Intent to Distribute Methamphetamine and Heroin
DEFENDANTS
Maximum Penalties: 40 years in Custody and $5 million Fine
Criminal Case No. 13CR4515-BEN Juan Ybarra, aka Listo
Sherri Pelayo
Michael Vaughn SUMMARY OF CHARGESConspiracy to Distribute Methamphetamine; Conspiracy to Launder Money. Maximum Penalties: Life in
DEFENDANT
Custody and $10 million fine.
Criminal Case No. 13CR4511-JLS Hector Aguilar, aka Flaco SUMMARY OF CHARGES Felon in Possession of a Firearm
Maximum Penalties: 10 years in Custody and $250,000 fine DEFENDANT
Criminal Case No. 14MJ0038 Kenneth Coleman, aka Lucky Age: 35 SUMMARY OF CHARGESConspiracy to Possess with Intent to Distribute Methamphetamine and Heroin
DEFENDANT
Maximum Penalties: 20 years in Custody and $1 million fine.
Criminal Case No. 14MJ0039 Ricardo Chavez, aka Droopy SUMMARY OF CHARGES Possession of Methamphetamine with Intent to Distribute
Maximum Penalties: 20 years in Custody and $1 million fine. DEFENDANT
Criminal Case No. 14MJ0038 Chayo Moreno SUMMARY OF CHARGESConspiracy to Distribute Methamphetamine; Maximum Penalties: 20 years in Custody and $1 million Fine.
INVESTIGATING AGENCIESNorth County Regional Gang Task Force, which includes agents and investigators from: Federal Bureau of Investigation
San Diego County Sheriff’s Office
Oceanside Police Department
Bureau of Alcohol, Tobacco, Firearms and Explosives
California Department of Corrections and Rehabilitation
Bureau of Prisons, Homeland Security Investigations
U.S. Marshals Service
California Highway Patrol
Escondido Police Department
Carlsbad Police Department*An indictment or complaint itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Three Men Sentenced for Fraud Scheme Involving Misappropriated Credit / Debit Card InformationRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Yanoysy Hernandez-Hernandez, age 35, of Spokane, Washington, Ernesto Morales, age 42, of Lawrenceville, Georgia, and Osmany Ruiz Lemas, age 43, of Spokane, Washington were sentenced for their involvement in a credit card / debit card fraud scheme. In the fall of 2013, Hernandez-Hernandez and Morales pleaded guilty to multiple charges of Aggravated Identity Theft and Lemas pleaded guilty to Conspiracy to Commit Access Device Fraud.
United States District Court Judge Lonny R. Suko sentenced Hernandez-Hernandez to a 30 month term of imprisonment and Morales to a 36 month term of imprisonment, with both terms to be followed by a 1 year term of court supervision after release from Federal prison; Aggravated Identify Theft charges carry a mandatory minimum penalty of two years imprisonment. In addition, Judge Suko ordered Hernandez-Hernandez to pay $807.61 in restitution, along with a $5,000.00 fine and ordered Morales to pay $16,681.01 in restitution. Judge Suko sentenced Lemas to a 5 year term of probation.
According to information disclosed during the court proceedings, beginning in December 2012 and continuing to February 2013, the United States Secret Service, the United States Postal Inspection Service, and the United States Department of Transportation Office of Inspector General conducted an investigation into the use of fraudulently obtained credit card and debit card numbers to purchase diesel fuel and other items of value in the Eastern District of Washington. As a result of the investigation, agents executed multiple search warrants on packages sent from Georgia and Florida to the Eastern District of Washington that were found to contain numerous gift cards with fraudulently obtained credit card and debit card account numbers loaded onto the gift cards. Agents also executed multiple search warrants at residences and other locations in the Eastern District of Washington. The fraudulently obtained credit and debit card account numbers found on the gift cards sent from Georgia and Florida were obtained from numerous people across the country. The gift cards could then be used as a credit card or debit card and would cause fraudulent charges to the respective credit and debit card account numbers on the gift cards. None of the account holders of the credit and debit card accounts found during the course of investigation authorized any of the Defendants to use their accounts.
It was further disclosed during the court proceedings that some of the fraudulently obtained account numbers were sent to Hernandez-Hernandez by Morales from Georgia. Once Hernandez-Hernandez received the gift cards in Spokane, he would use the gift cards to purchase diesel fuel and other things of value. Hernandez-Hernandez also provided Lemas with several gift cards that Lemas used to purchase diesel fuel. The diesel fuel purchased with the gift cards was loaded into specially modified vehicles and then resold to other people for a profit. The transportation of the fraudulently obtained diesel fuel was done using vehicles that were not approved for the transportation of such large quantities of fuel. During the course of investigation, agents also seized several vehicles that were used to transport the fraudulently obtained diesel fuel. The vehicles will be forfeited to the United States.
Michael C. Ormsby said, "The Secret Service, the Postal Inspection Service, and the Department of Transportation Office of Inspector General are committed to investigate thoroughly identity theft crimes. Prosecuting this type of fraud is a priority for United States Attorney's Office in the Eastern District of Washington. The successful prosecution of these cases is yet another example of the seamless and symbiotic working partnership of the Federal agencies working in this District."
This investigation was conducted by the Secret Service, the Postal Inspection Service and the Department of Transportation Office of Inspector General. These cases were prosecuted by James A. Goeke, an Assistant United States Attorney for the Eastern District of Washington.
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13-CR-0026-LRS-5Three Key West Men Sentenced for Possession of Stolen FirearmsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, announce that Jermaine Lamar Roberts, 34, Amdado Cardenas, 47, and William Jon Ray, 45, all of Key West, Florida, were sentenced today. Roberts was sentenced to 110 months in prison, Cardenas was sentenced to 170 months in prison, and Ray was sentenced to 180 months in prison, all to be followed by five years of supervised release.
Roberts, Cardenas, and co-defendant Patrick Lawrence Stickney, 43, of Key West, Florida, previously pled guilty to one count of possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g), and one count of possession of a stolen firearm, in violation of Title 18, United States Code, Section 922(j). Ray previously pled guilty to one count of possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g). Stickney is scheduled to be sentenced on February 19, 2014 at 1:30 p.m. before U.S. District Judge James Lawrence King in Key West, Florida.
According to court documents, the defendants, all previously convicted felons, were involved in the possession and attempted sale of numerous firearms stolen from a recreational vehicle in Stock Island, Florida, including military-style assault rifles.
Mr. Ferrer commended the investigative efforts of ATF, and thanked the Monroe County Sheriff’s Office for its work in this case. The case is being prosecuted by Assistant U.S. Attorney Frank Maderal.
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.
Tennessee Men Plead Guilty to Illegally Trafficking Narwhal TuskRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today two plea agreements in a multi-national conspiracy to illegally import and sell narwhal tusks.
Jay G. Conrad, of Lakeland, Tennessee, pleaded guilty in the District of Maine to conspiring to illegally import and traffic narwhal tusks, conspiring to launder money, and illegally trafficking narwhal tusks, announced Robert G. Dreher, Acting Assistant Attorney General for the Environment and Natural Resources Division. A plea agreement was also unsealed in which Eddie T. Dunn, of Eads, Tennessee, pleaded guilty in the District of Alaska to conspiring to illegally traffic, and trafficking, narwhal tusks.
According to the plea agreements, beginning in approximately 2003, Dunn and Conrad partnered to buy more than 100 narwhal tusks from a Canadian resident. Each knew the tusks were illegally imported from Canada into Maine. After receiving the tusks in Tennessee, Dunn and Conrad marketed and sold the tusks using a combination of internet sales via the “Ebay” auction website and direct sales to known buyers and collectors of ivory. Buyers were located throughout the United States, including in Alaska and Washington. Throughout the conspiracy, Dunn and Conrad made payments to the Canadian supplier for the narwhal tusks by sending the payment to a mailing address in Bangor, Maine, or directly to the supplier in Canada. The payments allowed the Canadian supplier to purchase and re-supply Dunn and Conrad with more narwhal tusks that they could then resell. Dunn sold approximately $1.1 million worth of narwhal tusks and Conrad sold between $400,000 and $1 million worth of narwhal tusks as members of the conspiracy.“This investigation uncovered and dismantled a wildlife trafficking network that spanned from New Brunswick to Tennessee and reached as far as Alaska,” said Karen Loeffler, U.S. Attorney for the District of Alaska. “The results reached demonstrate the close cooperation between the United States and Canada and their law enforcement officers whose duty it is to investigate, stop and deter those who illegally target diminishing wildlife resources and do so for commercial gain.”
“In this conspiracy, Dunn and Conrad flouted U.S. law and international agreements that protect marine mammals like the narwhal from commercial exploitation,” said Acting Assistant Attorney General Dreher. “If left unchecked, this illegal trade has the potential to irreparably harm the species. The Justice Department will continue to investigate and prosecute wildlife traffickers in order to protect these species for future generations to enjoy.”
“The cooperation between Service and NOAA investigators and between the United States and Canada that led to these prosecutions reflects the type of partnerships needed to protect narwhals and other species worldwide from wildlife trafficking,” said William C. Woody, Assistant Director for Law Enforcement for the U.S. Fish and Wildlife Service. “NOAA OLE takes the unlawful importation of protected marine mammals very seriously,” said NOAA-Office of Law Enforcement Special Agent in Charge Logan Gregory. “NOAA OLE will continue to investigate those who unlawfully import marine mammal products and profit from marine protected species such as the narwhal.”
A narwhal is a medium-sized whale with an extremely long tusk that projects from its upper left jaw. Narwhals are marine mammals protected by the Marine Mammal Protection Act and are listed on Appendix II of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). It is illegal to import parts of marine mammals into the United States without the requisite permits/certifications, and without declaring the merchandise at the time of importation to U.S. Customs and the U.S. Fish and Wildlife Service. Narwhal tusks are commonly collected for display purposes and can fetch large sums of money.
Dunn is scheduled to be sentenced by Chief U.S. District Judge Ralph R. Beistline in the District of Alaska on March 20, 2014. The maximum penalty Dunn faces for conspiring to illegally traffic, and trafficking narwhal tusks is five years of incarceration and a fine of $250,000. The maximum penalty Conrad faces for conspiring to illegally import and illegally traffic narwhal tusks, conspiring to commit money laundering crimes and illegally trafficking narwhal tusks is twenty years of incarceration and a fine of $250,000.
The trial of co-defendant Andrew J. Zarauskas is set to begin in Bangor, Maine, on February 4, 2014. Co-defendant Gregory R. Logan is pending extradition from Canada to the District of Maine.
These cases are part of Operation Nanook, a multi-agency effort to detect, deter and prosecute those engaged in the unlawful trafficking of narwhal tusks. The cases were investigated by agents from National Oceanic and Atmospheric Administration - Office of Law Enforcement and the U.S. Fish and Wildlife Service - Office of Law Enforcement, with extensive support and collaboration from Environment Canada - Wildlife Enforcement. The cases are being prosecuted by Trial Attorney Todd S. Mikolop of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division and Assistant U.S. Attorney Steven E. Skrocki of the District of Alaska.Tax Preparer Admits Preparing False Tax ReturnsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that SHALANDA JENKINS, 32, of New Britain, waived her right to indictment and pleaded guilty yesterday before U.S. Magistrate Judge William I. Garfinkel in Bridgeport to aiding and assisting in the filing of false federal income tax returns.
According to court documents and statements made in court, JENKINS worked as a tax return preparer at Tax Express, which has locations in New Haven and West Haven. While working at Tax Express, JENKINS assisted in the preparation of 31 false federal individual income tax returns for her clients, but without the clients’ knowledge of the returns’ false items. Specifically, JENKINS created false education credits, false child and dependent care credits, and various other false items in order to create additional refunds for her clients. The 31 fraudulent returns generated large refunds for JENKINS’ clients and caused a tax loss of $131,670 to the government.
JENKINS is scheduled to be sentenced by U.S. District Judge Stefan R. Underhill on April 1, 2014, at which time she faces a maximum term of imprisonment of three years and a fine of up to $100,000.
JENKINS’ clients are required to resolve their own tax liability with the Internal Revenue Service.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Syracuse, New York - Upstate Laboratories, Inc. was sentenced following its guilty plea to committing mail fraud related to the falsification of over 3,300 laboratory results from 2008 through 2010.Read the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced today that Upstate Laboratories, Inc., 6034 Corporate Drive, East Syracuse, New York was sentenced today by the Hon. Judge Glenn T. Suddaby following its guilty plea to committing mail fraud related to the falsification of over 3,300 laboratory results from 2008 through 2010. Judge Suddaby imposed a $150,000 fine and placed Upstate on Probation for 5 years. Upstate has gone out of business but the Court ordered it to prepare an environmental compliance plan and permit government inspections should it ever resume business operations.
As set forth in the plea agreement and charge, Upstate Laboratories had been a certified laboratory in the business of performing chemical analysis of water and soil samples supplied by public and private clients. Samples for which chemical degradation was an issue required Upstate Laboratories to perform analysis within specified time-frames (“holding times”) after the samples were obtained. Upstate Laboratories further promised to utilize required procedures to ensure that the samples did not degrade.
For samples that required a prompt turnaround time, Upstate Laboratories charged a fee greater than for samples that did not. For all samples, Upstate Laboratories represented to clients that analysis would be and was performed in accordance with required analysis standards. Upstate Laboratories submitted invoices for its analysis and was paid through use of the United States mail.
Notwithstanding representations of proper and timely sample analysis, from 2008 through 2010 Upstate Laboratories engaged in the routine “backdating” of samples results where employees changed the dates when the samples were analyzed to make it appear that analysis had occurred within the required time periods when in fact they had not. Upstate Laboratories thereafter prepared false and fraudulent analysis reports representing that samples were properly analyzed within required time frames and that the results were valid when they were not.
This case was investigated by Special Agents of the Environmental Protection Agency, Office of Inspector General and Criminal Investigation Divisions. The case was prosecuted by Assistant United States Attorney Craig Benedict. Questions may be directed to AUSA Benedict at 315-448-0726 or cell phone 315-391-1110.
Statement by U.S. Attorney Jenny Durkan on Seattle Police Department LeadershipRead the Press Release
"True and effective reform of the Seattle Police Department will require steady work and strong leadership. Today Mayor Murray provided that leadership and charted a clear course for moving forward. I look forward to working with him and interim Chief Harry Bailey, and welcome their strong commitment to constitutional and effective policing. I also want to recognize Jim Pugel’s service and leadership. He has made reform a strong priority throughout his tenure as interim Chief. I have worked with both Jim Pugel and Harry Bailey, and know they love this City and are dedicated to the officers and mission of the Department.
Together, the Justice Department, the City of Seattle, the Monitor, and members of the police department and our community have identified reforms that must take root at the Seattle Police Department. The consent decree details how those changes will be implemented. Over the last several months, we have made strong progress on the building blocks of reform. There is a new comprehensive use of force policy in place, approved by the federal judge overseeing this process. We also have agreed on new policies around Stops and Detentions and Biased-Free Policing that have been submitted to the Court and we hope will be approved shortly.
The next several months are critical to the reform process, and the commitment by the Mayor and Chief are essential for success. Together with the Community Police Commission we are developing new training around all the new policies. We are also working to develop and adopt a new policy and training for crisis intervention and interactions with those affected by mental illness or substance abuse.
Done right, the new Chief of Police will have the necessary framework to lead the Seattle Police Department to be the national model for urban policing."-- Jenny A. Durkan, United States Attorney, Western District of Washington
Statement by U.S. Attorney Jenny Durkan on Seattle Police Department LeadershipRead the Press Release
"True and effective reform of the Seattle Police Department will require steady work and strong leadership. Today Mayor Murray provided that leadership and charted a clear course for moving forward. I look forward to working with him and interim Chief Harry Bailey, and welcome their strong commitment to constitutional and effective policing. I also want to recognize Jim Pugel’s service and leadership. He has made reform a strong priority throughout his tenure as interim Chief. I have worked with both Jim Pugel and Harry Bailey, and know they love this City and are dedicated to the officers and mission of the Department.
Together, the Justice Department, the City of Seattle, the Monitor, and members of the police department and our community have identified reforms that must take root at the Seattle Police Department. The consent decree details how those changes will be implemented. Over the last several months, we have made strong progress on the building blocks of reform. There is a new comprehensive use of force policy in place, approved by the federal judge overseeing this process. We also have agreed on new policies around Stops and Detentions and Biased-Free Policing that have been submitted to the Court and we hope will be approved shortly.
The next several months are critical to the reform process, and the commitment by the Mayor and Chief are essential for success. Together with the Community Police Commission we are developing new training around all the new policies. We are also working to develop and adopt a new policy and training for crisis intervention and interactions with those affected by mental illness or substance abuse.
Done right, the new Chief of Police will have the necessary framework to lead the Seattle Police Department to be the national model for urban policing."-- Jenny A. Durkan, United States Attorney, Western District of Washington
Spokane Man Sentenced to Federal Prison for Unlawful Possession of A FirearmRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Kevin Robert Chastain, age 34, of Spokane, Washington, was sentenced on January 7, 2014 after having previously pleaded guilty in September, 2013 to the charge of being a Previously Convicted Felon in Possession of a Firearm. United States District Court Judge Lonny R. Suko sentenced Chastain to a 41-month term of imprisonment, to be followed by three years of court supervision after he is released from Federal prison.
According to information disclosed during the court proceedings, on April 2, 2012, Chastain was seen arguing with an unidentified man who had just struck Chastain. Witnesses called police upon seeing the altercation. During the argument, Chastain, a convicted felon, pulled a loaded, semi-automatic handgun. Deputies from Spokane County Sheriff's Office arrived shortly after the altercation began and Chastain ran. While running from police, Chastain tossed the loaded handgun away and also discarded a backpack, which contained magazines and ammunition. Chastain was thereafter arrested by Spokane County Deputies. Chastain has previous felony convictions for Residential Burglary, Trafficking in Stolen Property, Possession of Stolen Property, Attempted First Degree Theft, and Possession of a Stolen Vehicle.
Michael C. Ormsby stated, "Persons prohibited from possessing firearms and/or ammunition take note: The United States Attorney's Office for the Eastern District of Washington is, and will continue to be, committed to prosecute aggressively prohibited persons who unlawfully possess firearms and/or ammunition in this District."
This investigation was conducted by Spokane County Sheriff's Office and ATF. The case was prosecuted by Rudy J. Verschoor, an Assistant United States Attorney for the Eastern District of Washington.
13-CR-00094-LRS
Sioux Falls Woman Sentenced in Marijuana Distribution ConspiracyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, woman convicted of conspiracy to distribute marijuana was sentenced on January 6, 2014, by the Honorable Karen E. Schreier, U.S. District Judge.
Georgia Pfeifle, age 24, was sentenced to six months in custody and six months of home confinement, to be followed by two years of supervised release. She was also fined $1,000.
Pfeifle was charged by a Superseding Information with Conspiracy to Distribute Marijuana on October 10, 2013. She pled guilty on October 16, 2013.
Pfeifle joined a conspiracy to illegally distribute marijuana in South Dakota and elsewhere. During her involvement, she personally obtained, delivered and distributed marijuana in South Dakota, collected and received payments for marijuana, and deposited those payments to other co-conspirators’ accounts.
This case was investigated by the U.S. Department of Homeland Security – Immigration and Customs Enforcement in both South Dakota and California. Assistant U.S. Attorney Connie Larson prosecuted the case.
Pfeifle was ordered to turn herself into the U.S. Marshals Service on January 21, 2014.
Shreveport Man Sentenced to 10 Years in Prison for Being A Felon in Possession of A FirearmRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that Darrell Rogers Johns, 32, of Shreveport, was sentenced by U.S. District Judge Donald E. Walter, to 10 years in prison and three years of supervised release for one count of possession of a firearm and ammunition by a felon. Judge Walter also ordered that the firearm and ammunition involved be forfeited. Johns was found guilty on October 9, 2013, after a two-day bench trial.
Based on witness testimony, documents and other evidence presented at the trial, it was established that on February 11, 2011, Shreveport police stopped Johns’ vehicle because it matched the description of a vehicle sought in an ongoing criminal case. Johns gave consent to search his vehicle, and 11 rounds of .40 caliber ammunition was found. His residence was also searched, and a Smith & Wesson handgun loaded with 12 rounds of .40 caliber ammunition was found. Johns accompanied another person earlier to two pawn shops where he directed the person to purchase the firearm at one pawn shop and then to purchase the ammunition at a second pawn shop.
Johns was on parole at the time of his arrest. Before his arrest, he was convicted of the following state felony charges: possession of a Schedule II, controlled dangerous substance (cocaine), Caddo Parish District Court, 1999; forgery, Caddo Parish District Court, 2001; unauthorized entry of an inhabited dwelling, Caddo Parish District Court, 2005; possession of a Schedule II, controlled dangerous substance (crack cocaine), Caddo Parish District Court, 2006; and attempted possession with intent to distribute a Schedule I, controlled dangerous substance (marijuana), Bossier Parish District Court, 2010.
The Shreveport Police Department; the Louisiana Department of Public Safety and Corrections, Probation and Parole; and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide program started in 2001 to reduce violence by aggressively enforcing existing federal firearms laws.
Shiprock Man Sentenced to Forty-One Months for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Tyrell Elliot Frank, 27, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced today to 41 months in federal prison to be followed by two years of supervised release for his assault conviction.
Frank was arrested in April 2012, based on a criminal complaint charging him with assault. He subsequently was indicted and charged with assault with a dangerous weapon and assault resulting in serious bodily injury. According to court filings, on April 1, 2012, Frank repeatedly struck another Navajo man with a machete. As a result of the assault, the victim suffered severe cuts to his left arm and his back.
In Aug. 2013, Frank pleaded guilty to Count 2 of the indictment, charging him with assault resulting in serious bodily injury. In his plea agreement, Frank admitted that during the early hours of April 1, 2012, people arrived at his residence and approached him. Frank stated that, because he recently had been released from the hospital after having been assaulted, he struck a person he did not know with a machete causing him serious bodily injury. Frank stated that he later learned that the victim did not intend to harm him.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
Rochester Sisters Plead Guilty to Sex TraffickingRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Jerese Blue, 27, and Chellsie Blue, 23, both of Rochester, N.Y., pleaded guilty to conspiracy to commit sex trafficking of minors before U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of life in prison and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that the two sisters conspired to recruit and entice two victims, knowing that the victims were under the age of 18 years old. Specifically, Chellsie and Jerese Blue paid for and posted ads for two minors on Backpage.com to advertise the two minors as “escorts.” The defendants further provided transportation for the minor victims to meet with customers to engage in commercial sex acts and allowed the use of their residences on Arnett Boulevard in Rochester for the minors to engage in commercial sex acts.
In April 2012, Rochester Police began investigating the whereabouts of a 14-year-old female runaway. When the girl was found, she stated that from April 14 to April 18, she and another 17-year-old female had been introduced to prostitution by the defendants. According to the 14-year-old female, between April 15 and April 18, she had sexual relationships with numerous customers. On occasion, the 14-year-old was taken to meet with customers at two motels, where the defendants paid for the room for the victim to engage in commercial sex. The defendants kept most of the money earned by the minors through the prostitution activity.
“The facts of this case represent a nightmare scenario for parents and children alike,” said U.S. Attorney Hochul. “Here, vulnerable girls were taken by the defendants and transported into a life of misery. At sentencing, this Office will seek punishment appropriate for this reprehensible conduct.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The pleas are the culmination of an investigation on the part of the FBI's Cyber Crimes Task Force, which includes the Rochester Police Department under the direction of Acting Chief Michael Ciminelli, and Special Agents of the Federal Bureau of Investigation, under the direction of Brian P. Boetig, Special Agent in Charge.
Sentencing for Chellsie Blue is scheduled for April 9, 2014 at 3:00 p.m. Jerese Blue will be sentenced at 3:30 p.m., both before Judge Geraci.Rochester Man Pleads Guilty to Harboring Illegal Aliens for Commercial GainRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Zhou Wang Ni, 48, of Rochester, N.Y., pleaded guilty to harboring an illegal alien for commercial gain before U.S. District Court Judge David G. Larimer. The charge carries a maximum penalty of 10 years in prison and a fine of up to $250,000.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that the defendant is the manager of the Grand Super Buffet Chinese Restaurant located on Jefferson Road in Henrietta, N.Y. As manager, Ni hired several illegal aliens to work in the restaurant who he knew were not lawfully present in the United States. The defendant housed these workers in properties he owned around Rochester and paid them in cash. While conducting surveillance, federal agents observed Ni driving these individuals to work at the restaurant on several occasions.
Homeland Security Investigations conducted an immigration audit of the restaurant during the course of the investigation during which the defendant concealed the fact that those illegal aliens were working. However, agents had video footage of those same workers being picked up by the defendant in the morning, being driven to the restaurant, and then working inside during the day.
The plea is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Sentencing is scheduled for May 12, 2014 at 2:00 p.m. before Judge Larimer.Ringleader and Co-Conspirators Sentenced to Federal Prison in Mail Theft and Bank Fraud SchemeRead the Press Release
More Than 2,000 Pieces Of Stolen Mail Recovered Belonging to Over 845 Mail Theft VictimsMEDFORD, Ore. – Robert Lee Powelson, 30, Medford, Oregon was sentenced Tuesday to 161 months in federal prison by Senior U.S. District Judge Owen M. Panner after his convictions for, and his leadership role in, conspiracy to commit mail theft, conspiracy to commit bank and mail fraud, and aggravated identity theft. Dallas Lee Tedford, 32, and Kayla Ann Strange, 23, both of Medford, were sentenced to federal prison Monday by U.S. District Judge Michael J. McShane for their convictions for conspiracy to commit mail theft, conspiracy to commit bank fraud, and aggravated identity theft. Tedford was sentenced to 44 months; Strange was sentenced to 50 months. As part of each sentence, each defendant received a mandatory consecutive term of two years in prison required by federal statute where a victim’s identification was possessed or used in committing bank or mail fraud. Each defendant was also ordered to pay $70,380.09 in restitution to victims of the fraud.
Between September 2012 and March 2013, Powelson, Tedford, Strange, and other conspirators, repeatedly stole large quantities of U.S. mail from residents and businesses in the Medford, Oregon area. After stealing the mail, they removed financial instruments, financial documents, and identity documents of victims, and collected personal identifiers from those documents to create profiles of victims to further their fraud schemes. The fraud schemes included forging and cashing or depositing stolen personal checks into bank accounts defendants controlled; applying for and controlling credit card accounts in the names of victims; taking control of checking accounts of victims; and opening American Express Bluebird reloadable cards in the names of victims. As part of the bank fraud scheme, victim identities from the stolen mail were used to obtain fraudulent credit cards which were mailed to residences where the defendants retrieved and used them.
According to sentencing documents submitted by AUSA Byron Chatfield, a total of seven search warrants were executed at three motels, two vehicles, and two residences in the Medford area during the investigation. One of the victims had just recently moved from the state of Alaska to Ashland, Oregon to be with family and friends because of terminal cancer, and died while unknowingly being victimized by the defendants and the other co-conspirators. Another victim learned that their personal identifying information was being used in the fraud scheme while they were with their sick child at Doernbecher Children’s Hospital in Portland. As a result, the victim’s family experienced financial problems with their bank accounts and credit cards during a required lengthy stay with their child at Doernbecher’s.
Powelson also eluded police in two separate high-speed vehicle pursuits while involved in stealing mail. The subsequent search of the car Powelson and Strange used to elude police following one pursuit uncovered 12 financial account cards and 84 pieces of stolen mail including checks, check books, and financial and tax documents such as W-2’s and 1099 forms belonging to 81 Medford victims. The identity documents and checks recovered from the vehicle were collected together by Strange after they had been stolen from the mail. Also, Strange documented stolen victim identifying information in notebooks for future use. Following the second high speed pursuit, police found Powelson along with other associates at a local motel and upon searching their room police seized approximately 1,000 pieces of stolen mail belonging to approximately 365 individuals and businesses from the Medford area.
During a search of a residence where Strange and Powelson received mail and credit cards in victim’s names, police recovered 300 pieces of stolen mail including financial and tax information and 128 stolen checks that belonged to 161 victims from the Medford area. Police also discovered cell phone text messages between Tedford and another co-conspirator with instructions about how to activate a victim’s stolen credit card. A later search of Tedford’s apartment by police recovered a large quantity of stolen mail, victim identity profiles, 138 stolen and altered checks, and American Express Bluebird cards.
Numerous fraudulent checks seized from Tedford’s apartment had been loaded and reloaded on multiple Bluebird cards through smart phone imagery. Often the checks were altered in between load attempts in an effort to deceive the check scanning software and/or manual review of the checks at the time the checks were uploaded. Fraudulent Bluebird cards were also recovered during several of the other search warrants and intercepted from the mail stream destined for addresses used by Powelson, Strange, and Tedford for the fraud. Many of the fraudulent Bluebird cards were determined to be related through shared account information, card-to-card transactions, the use of the same email addresses, and the loading of fraudulent checks through smart phone imagery. Transaction analysis related to those cards disclosed a total attempted fraud of at least $214,697.
The other federally charged defendants, Eduardo Navarro, 24, and Lana Marshall, 29, both of Medford, Oregon, are scheduled to be sentenced within the next few weeks.
This case was investigated by the Medford Police Department, Talent Police Department and the U.S. Postal Inspection Service and prosecuted by Assistant United States Attorney Byron Chatfield.
Rapid City Man Sentenced for Possession of A Firearm in Furtherance of Drug Trafficking CrimeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm in Furtherance of Drug Trafficking Crime was sentenced on January 3, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Jay Paul Gallego, age 28, was sentenced to 60 months in custody, 3 years of Supervised Release, and a $100 special assessment to the Federal Crime Victims Fund.
Gallego was indicted by a federal grand jury on January 23, 2013. He pled guilty to Possession of a Firearm in Furtherance of Drug Trafficking Crime on October 4, 2013.
On December 11, 2012, Gallego possessed with intent to distribute one gram of methamphetamine which was found during a search of his house. Law enforcement agents also found baggies, paraphernalia, and two firearms.
This case was investigated by the Northern Plains Safe Trails Task Force, the Federal Bureau of Investigation, and the Rapid City Police Department. Special Assistant U.S. Attorney Laura A. Shattuck prosecuted the case.
Gallego was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Illegal Possession of A FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Domestic Violence Offender in Possession of a Firearm and Ammunition was sentenced on January 2, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Shawn Muldoon, age 30, was sentenced to time served of 1 day and 2 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Muldoon was indicted by a federal grand jury on March 19, 2013, and he pled guilty to the offense on July 19, 2013.
In July 2012, near Rapid City, Pennington County sheriff’s deputies assisted a vehicle stuck on forest service land. The vehicle was occupied by Muldoon and others. During the vehicle search, investigators located a 9mm handgun and ammunition owned by Muldoon, who is prohibited from possessing firearms due to a 2003 domestic violence conviction.
The investigation was conducted by the Pennington County Sheriff’s Office and the U.S. Forest Service. The case was prosecuted by Assistant U.S. Attorney Sarah B. Collins.
Rapid City Man Sentenced for Felon in Possession of A FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Felon in Possession of a Firearm was sentenced on January 6, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Ryan Umbarger, age 23, was sentenced to 40 months in custody, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Umbarger pled guilty to the charge on October 9, 2013. The charge related to Umbarger possessing a stolen 9 mm caliber pistol and a stolen .30-.30 caliber rifle. Umbarger is prohibited from possessing firearms based on previous felony convictions.
This case was investigated by the Pennington County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Umbarger was immediately turned over to the custody of the U.S. Marshals Service.