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Monday 21 October 2013
Former Attorney and Youth Baseball Coach Sentenced to 25 Years in Prison for Child Pornography OffensesRead the Press Release
A family law attorney who previously practiced in Kent, Washington was sentenced today to 25 years in prison and lifetime supervised release for Production of Child Pornography/ Sexual Exploitation of Children, one count of Receipt of Material Constituting or Containing Child Pornography, and one count of Possession of Child Pornography, announced U.S. Attorney Jenny A. Durkan. DAVID S. ENGLE, 50, of Maple Valley, Washington was arrested in November 2012. ENGLE, who both volunteered in and ran a business involving youth baseball, has been incarcerated since his arrest. At sentencing U.S. District Judge James L. Robart took issue with a defense claim that these were not violent attacks saying, ”Molestation is violence… Sure, he didn’t threaten to break an arm… but this is violence, let’s be very clear on that.”
“This is a heart-wrenching betrayal of trust of the victims and the community,” said U.S. Attorney Jenny A. Durkan. “While nothing can undo this damage, the long sentence will protect the community and sends a strong message about the horrendous acts. Our advocates are resolved to do everything possible to support the victims as they deal with the horrific abuse.”
According to records filed in the case, ENGLE came to the attention of law enforcement following the investigation of an international movie production company that operated a website offering DVDs and streaming videos for sale. The materials depicted young boys in sexually explicit activity. Between 2005 and 2011, ENGLE purchased 184 different items from the website. The international movie production company was put out of business when agents seized its inventory and records. The company and the owners of the company are being prosecuted for child exploitation offenses, including the production and distribution of child pornography.
After law enforcement executed a search warrant on ENGLE’s home and storage locker in November 2012, they discovered more than 500 videos of ENGLE sexually molesting a young boy under the age of 16. Law enforcement later discovered additional evidence of ENGLE sexually molesting another young boy, also under the age of 16. ENGLE is being separately prosecuted for those offenses by the King County Prosecutor’s Office. Following forensic examination of a number of computers, DVDs, thumb drives, and floppy disks, investigators determined that ENGLE was in possession of tens of thousands of images of child pornography, and thousands of videos of child pornography.
In asking for a 30 year prison sentence, prosecutors noted that ENGLE betrayed the trust put in him by the community. “To then learn that Defendant had been charged with producing child pornography and molesting children added additional layers of anguish that can never be ameliorated. To the mothers of Minor Victim 1 and Minor Victim 2, to all of the parents who put their trust in Defendant, to all of the children who called him “Coach,” to all of those involved in youth baseball for the pure enjoyment of the sport, and to the larger community, Defendant’s criminal conduct is especially monstrous,” prosecutors wrote in their sentencing memo.
The case was investigated by the U.S. Postal Inspection Service and was prosecuted by Assistant United States Attorney Marci Ellsworth.
Financial Consultant Pleads Guilty to FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that August John Stile, Jr., age 49, of Hughestown, Pennsylvania, pleaded guilty today to the defrauding investors of approximately $310,000 before United States District Court Judge Malachy E. Mannion.
According to United States Attorney Peter J. Smith, Stile appeared in Federal Court in Scranton, Pennsylvania, and admitted to devising a scheme to defraud private investors of money by fraudulently offering short term investment opportunities based upon a promise of a return of the investment with substantial interest in less than 90 days.
The Criminal Information alleges that Stile was the purported Vice President of JFC Group and the President of Stile Consulting. JFC Group had an office in Dickson City, Pennsylvania, and Stile Consulting had an office in Exeter, Pennsylvania. Stile admitted today in federal court that rather than investing the money he received from investors to fund projects as promised, Stile utilized the funds for his own purposes.
The case was investigated by the Federal Bureau of Investigation. Prosecution has been assigned to Assistant United States Attorney John Gurganus.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Felon in Possession of Firearm Gets More Than Eight Years in PrisonRead the Press Release
McALLEN, Texas – Four-time convicted felon Aurelio Perez-Aleman, of Roma, has been ordered to prison for possessing a firearm, United States Attorney Kenneth Magidson announced today. Perez-Aleman, 37, pleaded guilty May 30, 2013.
Today, U.S. District Judge Randy Cane sentenced Perez-Aleman to 100 months imprisonment to be followed by a three-year-term of supervised release. The sentence was enhanced due to his prior violent felonies and the high capacity magazine involved.
On Sep. 7, 2013, Perez-Aleman was discovered in his vehicle near the Rio Grande River by Border Patrol (BP) agents after illegal aliens were spotted nearby. After giving the BP agents consent to search his vehicle, a WASR 10, 7.62 mm rifle was discovered inside his vehicle. Records indicated he was a previously convicted felon, thereby prohibiting him from possessing a firearm. He has two prior felony convictions for possession of marijuana as well as aggravated robbery and assault on a public servant.
The investigation revealed Perez-Aleman had been waiting for an individual to cross the Rio Grande River so Perez-Aleman could give him the firearm.
Aurelio Perez-Aleman has been in custody where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and BP. The case was prosecuted by Assistant United States Attorney Steven Schammel.
Employee Charged with Defrauding Chester County-Based EmployerRead the Press Release
PHILADELPHIA - Christopher Stehm, 51, of Mason, Ohio, was charged today by information with defrauding his employer, Berwyn-based Ametek, Inc., of at least $659,731, announced United States Attorney Zane David Memeger. According to the information, Stehm was the chief accounting officer at two different offices of the company when he submitted phony claims for expense reimbursements, many of which he supported with doctored receipts. Stehm is charged with two counts of wire fraud and two counts of filing false tax returns.
Stehm was the controller for Ametek’s Chandler division, in Broken Arrow, Oklahoma, from about January 2006 through March 2010. In April 2010, Ametek promoted Stehm to be the vice president of finance at its HCC division, in Cincinnati, Ohio, and Stehm held that position until November 2012. In both positions, Stehm was his office’s chief accounting officer. According to the information, throughout his employment at Ametek, Stehm used a variety of methods to obtain “reimbursements” for expenses that he either never incurred or that were wholly personal in nature. These methods allegedly included cutting off the tops of receipts or “whiting out” portions of receipts that Stehm submitted with his expense reimbursement claims to make them appear to be business-related. Stehm also allegedly used copies of the same receipts to support multiple expense reimbursement claims.
Ametek is a publicly-traded company (symbol AME on the New York Stock Exchange), which manufactures electronic instruments and electromechanical devices for sale in numerous countries. The company is headquartered in Berwyn, Pennsylvania, but it has offices in numerous locations in the U.S. and overseas.
The information alleges that among the numerous personal expenses Stehm submitted for reimbursement from Ametek were repairs to his personal cars, private meals, and the purchase of a family dog. Stehm also allegedly hid his illegal income from the Internal Revenue Service and claimed baseless deductions when he filed his tax forms for 2010 and 2011, thereby under-reporting his annual income by more than $100,000 in each of those tax years.
If convicted of all charges, the defendant faces a maximum possible sentence of 46 years in prison, three years of supervised release, a $1 million fine, and a $400 special assessment.
The case was investigated by the FBI and the Internal Revenue Service Criminal Investigations. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525East Haven Police Officers Found Guilty of Federal Civil Rights OffensesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation, today announced that a federal jury in Hartford has found East Haven Police Officer DENNIS SPAULDING, 30, and former East Haven Police Officer DAVID CARI, 36, guilty of conspiring to violate, and violating, the civil rights of members of the East Haven community. The trial before U.S. District Judge Alvin W. Thompson began on September 23 and the jury returned its verdict today.
“This prosecution and the jury’s swift and unambiguous verdict should send a very strong message that there is no place in law enforcement for anyone who abuses power or victimizes defenseless individuals,” stated Acting U.S. Attorney Daly. “No one is above the law, and no one is beneath the law’s protection. The illegal behavior detailed during the course of this trial chips away at the public’s trust in all members of law enforcement, the vast majority of whom serve honorably and bravely each and every day. I want to thank the FBI agents who have tirelessly investigated this matter, and our prosecution team for achieving this successful result under especially difficult circumstances. Since these charges were announced, the East Haven Police Department, under the direction of the Justice Department, has made great strides to purge itself of unlawful and unethical behavior within it ranks and change the way it does business. It is our expectation that new policing policies will ensure that this kind of conduct is part of East Haven’s past, not its future.”
“As Mr. Spaulding and Mr. Cari learned today, no one is above the law,” stated FBI Assistant Director-in-Charge Venizelos. “Law enforcement takes an oath to protect and serve our communities. We are, and rightfully should be, held to a higher standard. It is unconscionable when law enforcement, anywhere, breaks that vow. Today, these defendants find themselves guilty of violating the very rights for which this country was founded. There is no excuse for law enforcement who betrays the public’s trust.”
According to the evidence presented during the trial, from approximately 2007 through 2011, SPAULDING and CARI together with other East Haven Officers conspired to injure, threaten, and intimidate various members of the East Haven community in violation of their Constitutional rights. The defendant officers maintained and perpetuated an environment where the use of unreasonable force and unreasonable searches and seizures was tolerated and encouraged. Defendants SPAULDING and CARI engaged in unlawful arrests and searches, including the baseless arrests of a Catholic priest and several Latinos who lived or worked in the community. Additionally, SPAULDING used excessive force during arrests when victims were unarmed, neither resisting nor interfering with the police. Certain victims were particularly vulnerable because they were undocumented aliens and thus unlikely to raise objection to the abuse.
The evidence at trial further revealed that SPAULDING intimidated, harassed and humiliated members of the Latino community and their advocates, and conducted unreasonable and illegal searches at Latino-owned businesses. Trial testimony established that in November 2008, SPAULDING used excessive force against an individual in the parking lot of a Latino-owned restaurant and bar. SPAULDING then arrested the individual under false pretenses to cover-up the assault and prepared a false report to justify the false arrest. Later, in January 2009 in the same parking lot, SPAULDING and another officer arrested three individuals under false pretenses. SPAULDING also prepared a false report to justify these arrests.
In February 2009, the defendant officers illegally searched a vehicle parked outside of a Latino-owned grocery store. Inside the store, CARI then arrested a Catholic priest, who is also an advocate for Latinos, on false pretenses. The officers then conducted an illegal search of the back room of the store in an effort to unlawfully seize the store’s video recording equipment. In the days following the arrest, CARI drafted various false versions of an arrest report to cover up the false arrest of the religious leader.
The jury found SPAULDING and CARI guilty of one count of conspiracy against rights, which carries a maximum term of imprisonment of 10 years and a fine of up to $250,000. In addition, SPAULDING was found guilty of one count of use of unreasonable force by a law enforcement officer, which carries a maximum term of imprisonment of 10 years and a fine of up to $250,000. SPAULDING was found guilty of two counts and CARI of one count of deprivation of rights for making arrests without probable cause. Each of these counts carries a maximum term of imprisonment of one year and a fine of up to $100,000. Finally, SPAULDING was found guilty of two counts and CARI of one count of obstruction of a federal investigation for preparing false reports to justify the false arrests. Each of these counts carries a maximum term of imprisonment of 20 years and a fine of up to $250,000.
Judge Thompson has scheduled sentencing for January 21, 2014.
Two other former members of the East Haven Police Department have been convicted as a result of the investigation. On September 21, 2012, Sergeant John Miller pleaded guilty to one count of violating an individual's civil rights by using unreasonable force during the course of an arrest. On October 23, 2012, Officer Jason Zullo pleaded guilty to one count of obstruction stemming from his filing of a false police report in order to prevent a possible excessive force investigation.
Miller and Zullo await sentencing.
This matter is being investigated by the Civil Rights Squad of the FBI’s New York Field Office. The case is being prosecuted by Assistant U.S. Attorney Krishna R. Patel and Senior Litigation Counsel Richard J. Schechter.
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U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]District Man Pleads Guilty to Charges in 2012 Killing of His Cousin-Victim Died of Head Injuries Suffered in Attack-Read the Press Release
WASHINGTON – Arvel Wills, 24, of Washington, D.C., pled guilty on Oct. 10, 2013 to charges stemming from the killing of his cousin, Dwayne Wills, last year in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Wills pled guilty in the Superior Court of the District of Columbia to involuntary manslaughter and a firearms offense. The Honorable Ronna L. Beck scheduled sentencing for Dec. 18, 2013.
According to the government’s evidence, on May 26, 2012, at about 4 a.m., Wills and his cousin, Dwayne Wills, 25, engaged in a verbal dispute that turned into a physical altercation at Abbey Place and L Street NE. They had been drinking alcohol at the time of the incident.
Dwayne Wills took two punches at the defendant. Arvel Wills picked up his cousin by his neck and leg, held him over his head, and then forcefully slammed his head into a concrete street, causing a skull fracture. Dwayne Wills was unconscious, but was revived and taken to Washington Hospital Center, where he claimed that he had fallen and hurt himself. He lapsed into a coma. On June 4, 2012, he died as a result of head injuries suffered on May 26, 2012.
The District of Columbia medical examiner=s office ruled the case a homicide. The evidence indicates that the cause of death was blunt impact trauma to the head.
Wills was arrested on Sept. 27, 2012. At the time of his arrest, he possessed a 9 mm Ruger, which had an extended magazine clip with 13 rounds of ammunition and was capable of holding 50 rounds. He has been in custody ever since.
In announcing the plea, U.S. Attorney Machen expressed appreciation to the detectives, officers and others who investigated the case from the Metropolitan Police Department. He also thanked the U.S. Marshals Service for its assistance on the case. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigators Stephen Cohen, Tommy Miller, Melissa Matthews, Durand Odom, Nelson Rhone, Juan Juarez, Matt Kutz, and interns Ian Irlander and Brian Edgerton; Victim/Witness Advocate Marcia Rinker, and Paralegal Specialist Kelley Blakeney. Finally, he commended Assistant U.S. Attorney Cynthia G. Wright who prosecuted the case.
13-358Cutler Man Pleads Guilty to Being Part of Methamphetamine ConspiracyRead the Press Release
On October 17, 2013, Virgil L. Easton, 35, of Cutler, Illinois, pled guilty in United States District Court in Benton to an indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
The offense occurred between January 2011, and January 2013, in Perry, Jackson, and Randolph Counties. Evidence at the plea hearing established that, during the conspiracy, Easton obtained and provided pseudoephedrine to others for use in the manufacture of methamphetamine. Easton is currently being held without bond pending his January 30, 2014, sentencing hearing. Easton faces up to 20 years in prison, 3 years of supervised release, and a fine of up to $1,000,000. Ten co-defendants have previously been sentenced for their role in the methamphetamine conspiracy. Three co-defendants have pled guilty and are awaiting sentencing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Randolph County Sheriff’s Office, Perry County Sheriff’s Office, Percy Police Department, Murphysboro Police Department, Sparta Police Department, and Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Friday 18 October 2013
Youngstown Woman Charged Wtih Assaulting U.S. MarshalRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a federal grand jury returned a one-count indictment charging Rochelle Johnson, age 41, of Youngstown, Ohio, with assaulting, resisting, opposing, impeding and interfering with a Deputy U.S. Marshal while engaged in official duty.
The indictment charges that on or about October 2, 2013, Johnson assaulted a Deputy U.S. Marshal while he was engaged in official duty.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the United States Marshals Service and the Northern Ohio Violent Fugitive Task Force. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment in only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Woman Sentenced to 72 Months in Federal Prison in Child Sex-Trafficking CaseRead the Press Release
FORT WORTH, Texas — Brittanie S. Brattain, 22, was sentenced on Tuesday, October 15, 2013, by U.S. District Judge Terry R. Means, to 72 months in federal prison, following her guilty plea in June 2013 to one count of conspiracy to commit sex trafficking of a minor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Brattain’s co-defendant, Deundrea R. Miller, 27, also pleaded guilty in June to the same offense and is scheduled to be sentenced on November 12, 2013.
According to documents filed in Brattain’s case, prior to September 2012, Brattain had a relationship with Miller. In late September or early October 2012, Brattain and Miller met Jane Doe. They agreed to take pictures of Jane Doe to post advertisements for “dates” on Back Page that would be used for commercial sex acts. Brattain and Miller used a cell phone to take the pictures and post the advertisements.
Some of the commercial sex acts involving Jane Doe occurred in motels in East Fort Worth. After the commercial sex acts, Jane Doe would give the money she received to Miller. Miller and Brattain harbored and maintained Jane Doe while they stayed in these motels.
In January 2013, Miller and Brattain rented a duplex in Fort Worth where commercial sex acts involving Jane Doe also occurred. Also in January 2013, Miller and Brattain posted “escort” advertisements involving Jane Doe. While Jane Doe stayed with Miller and Brattain, Miller and Brattain received financial benefit from her participation in commercial sex acts, all in reckless disregard that Jane Doe was under age 18.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and other members of the North Texas Anti-Trafficking Team, including the Arlington, Fort Worth and Dallas Police Departments, the Texas Department of Public Safety and the Texas Attorney General’s Office. Assistant U.S. Attorney Aisha Saleem prosecuted.
West Frankfort, Illinois, Man Sentenced for Child Pornography OffensesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on October 17, 2013, Devere L. Abair, Jr., 48, of West Frankfort, Illinois, was sentenced in federal district court for accessing child pornography images online and for failure to register as a convicted sex offender. Abair had earlier pled guilty to the charges on July 8, 2013. The Court sentenced Abair to 12 years in prison, a $400 fine and 10 years of closely monitored supervision after release from prison.
“Protecting our children from those who would prey upon them is my duty and my passion.” noted United States Attorney Wigginton. “Accessing these images victimizes children again and again. Such despicable behavior must be stopped.”
The evidence at sentencing established that Abair had previously been convicted in Indiana for sex offenses involving children. That conviction required Abair to register as a sex offender and notify authorities when he changed residences. Thereafter, Abair moved to West Frankfort, Illinois, and failed to notify authorities in Indiana or Illinois that he had moved. While investigating that offense, authorities discovered that Abair had been accessing child pornography from three computers at his West Frankfort residence.
The investigation in this case was conducted by the Secret Service Southern Illinois Cyber Crimes Task Force, The United States Marshals Service, and the Franklin County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Thomas E. Leggans.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources".
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Raymond Belsan, 33, of Goshen, Indiana, pled guilty before District Judge Robert Miller, Jr. to the felony offense of distribution of child pornography.Sentencing has been set for 1/22/14.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation and the United States Secret Service.This case is being prosecuted by Assistant United States Attorney John Maciejczyk.
Kendra Winston, 24, of South Bend, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of being an accessory after the fact to bank robbery.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 1/16/14.This charge was filed as a result of an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Jesse Barrett.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Dayman Olivares, 34, of Bremen, Indiana, was sentenced by District Judge Robert Miller, Jr. to 70 months imprisonment and 4 years of supervised release after pleading guilty to the felony offense of possession with the intent to distribute cocaine.According to documents filed in this case, Olivares possessed cocaine and heroin which he intended to sell to a confidential informant.He arrived at the site of the drug deal with his girlfriend and two young children in the car.This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney William Grimmer.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS:
Dedrick Bufkin, 20, of Merrillville, Indiana, a defendant in the case US v Toney et al., was sentenced by District Judge Joseph Van Bokkelen to 60 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of brandishing a firearm during a crime of violence.According to documents filed in this case, Diamond Toney established on online relationship with a victim through a dating website.Toney and Bufkin, armed with a gun, met the victim at an arranged site, tied him up with string and duct tape and ordered him into the trunk of his own vehicle.Toney and Bufkin took money, a cell phone and wallet from the victim and held him captive in the trunk for approximately 5 hours before letting him go.This case was the result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Lizbeth Correa, 35, of Wawaka, Indiana, a defendant in the case US v Madrigal et al., pled guilty before Magistrate Judge Roger Cosbey to the felony offense of profiting from managing and controlling a building for the purpose of storing and distributing methamphetamine. Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the IMAGE Task Force, the Noble County Prosecuting Attorney’s Office, the Indiana State Police, the Ligonier Police Department and the Fort Wayne Police Department.This case is being prosecuted by Assistant United States Attorney Anthony Geller.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Virginia Man Sentenced to 2 ½ Years in Prison for Possession of Child PornographyRead the Press Release
WASHINGTON – Richard Mark Abbott, 62, of Chesterfield, Va., was sentenced today to a 2 ½-year prison term on a federal charge of possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Abbott pled guilty to the charge in July 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable John D. Bates. Upon completion of his prison term, Abbott will be placed on 10 years of supervised release.
According to the government's evidence, on March 15, 2013, Abbott contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site frequented by individuals with a sexual interest in children. Over the next few days, Abbott engaged in online e-mail and instant messaging with the undercover officer, whom Abbott believed was the father of an under-aged girl.
During the course of their communications, Abbott sent the undercover officer ten images of child pornography. On May 2, 2013, Abbott was arrested at his residence in Virginia. Pursuant to a search warrant for the residence, law enforcement recovered various electronic devices including two computers and various external storage devices. After a forensic review of those items, law enforcement recovered over 600 images of child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
13-353Vietnamese National Charged in Widespread International Scheme to Steal and Sell Hundreds of Thousands of U.s. Persons’ Personally Identifiable InformationRead the Press Release
A Vietnamese national has been indicted in the District of New Hampshire for allegedly participating in an international scheme to steal and sell hundreds of thousands of Americans’ personally identifiable information (PII) through various underground websites that he operated.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney John P. Kacavas of the District of New Hampshire, and Resident Agent in Charge Holly Fraumeni of the U.S. Secret Service’s Manchester Field Office made the announcement after the indictment was unsealed.
Hieu Minh Ngo, 24, a Vietnamese national, was charged in a 15-count indictment filed under seal in November 2012, charging him with conspiracy to commit wire fraud, substantive wire fraud, conspiracy to commit identity fraud, substantive identity fraud, aggravated identity theft, conspiracy to commit access device fraud, and substantive access device fraud. Ngo was arrested upon his entry into the United States in February 2013. The statutory maximum penalties are five years on the identity fraud and identity fraud conspiracy counts, two years each on the aggravated identity theft counts, 20 years on the wire fraud count and wire fraud conspiracy counts, 10 years on the substantive access device fraud count and five years on the conspiracy to commit access device fraud count.
According to the indictment, from 2007 through 2012, Ngo and other members of the conspiracy acquired, offered for sale, sold, and/or transferred to others packages of PII for more than 500,000 individuals. These packages, known as “fullz,” typically included a person’s name, date of birth, social security number, bank account number and bank routing number. During this same time, Ngo and other members of the conspiracy acquired, offered for sale, sold, and/or transferred to others stolen payment card data, which typically included the victim account holder’s payment card number, expiration date, card verification value number, account holder name, account holder address and phone number.
The indictment alleges that Ngo operated one or more online marketplaces for various carding activities, known as carder forums, where he stored and offered for sale “fullz” and other PII, including “fullz” of individuals located in the District of New Hampshire. On two carder forums, Ngo and his co-conspirators offered buyers the option to obtain a specified quantity of “fullz” or to submit a query of a particular name to obtain that person’s associated PII. Ngo and his co-conspirators allegedly offered several categories of PII, depending on how recently the data had been acquired, and charged higher prices for more recent data. Ngo allegedly made arrangements with others who, after paying a fee, could access and then and re-sell the stolen payment card data, “fullz” and other PII. Ngo and his co-conspirators created one or more accounts with a digital currency service and used those accounts to receive funds for the stolen payment card data, “fullz” and other PII that they sold.
The case was investigated by the U.S. Secret Service and is being prosecuted by Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Arnold H. Huftalen of the District of New Hampshire.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Announces Indictment of Evansville Insurance Agent for Wire Fraud SchemeRead the Press Release
EVANSVILLE – Joseph H. Hogsett, the United States Attorney, announced today that Danny Lee Beavin, age 39, of Evansville, has been indicted by a federal grand jury sitting in Evansville. Beavin faces six counts of wire fraud and one count of conspiracy to commit wire fraud, following an investigation by the Evansville Police Department and United States Secret Service.
“This indictment alleges a scheme that was fueled by greed and a culture of corruption,” Hogsett said. “The U.S. Attorney’s Office remains unwavering in our commitment to investigate and prosecute anyone who attempts to enrich themselves at the expense of hard-working Hoosiers and our business community.”
The indictment alleges that between April 1, 2011 and December 31, 2011, Beavin was an insurance agent authorized to sell insurance annuity policies. Beavin allegedly devised a scheme in order to defraud an insurance company and receive commissions he was not entitled to receive. The scheme involved Beavin and others submitting fraudulent insurance applications that contained false birth dates. Investigators allege that these fraudulent policies were submitted on at least six different occasions.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who is prosecuting the case for the government, Beavin faces a maximum of twenty years in prison and a $250,000 fine for each of the six counts of wire fraud. The conspiracy count has a maximum penalty of five years in prison.
An Indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
U.S. Attorney Barry Grissom to Speak in Parsons Oct. 24Read the Press Release
WICHITA, KAN. – U.S. Attorney Barry Grissom will speak in Parsons on Thursday, Oct. 24.
Grissom will be guest speaker at the noon luncheon of the Parsons Rotary Club. The club is meeting at the Chinese Chef, 900 N. 16th Street in Parsons. His topic will be “Federal Law Enforcement: National security, public safety and civil rights.”
Grissom leads a staff of about 50 assistant U.S. Attorneys and 50 support personnel who work in offices in Kansas City, Kan., Topeka and Wichita. He was appointed by President Barack Obama in 2010.
For more information, call Jim Cross, public information officer, at 316-269-6552.
Two Men Sentenced to Federal Prison for Their Roles in International High-Yield Investment SchemeRead the Press Release
Octuber 18, 2013BOSTON – Two men were sentenced today for their roles in a scheme to defraud investors from across the country out of millions of dollars.
Alan Gilner, 78, of New Smyrna Beach, Fla., and Randi A. Bochinski, 49, of British Columbia, Canada, were sentenced by United States District Court Judge Douglas P. Woodlock. Gilner was sentenced to 84 months in prison, three years of supervised release, and ordered to pay $5.2 million in restitution. In June 2012, Gilner was convicted of conspiracy, mail fraud, wire fraud and money laundering following a seven-day jury trial. Bochinski was sentenced to 72 months in prison; three years of supervised release, and ordered to pay $5.2 million in restitution. In May 2013, Bochinski pleaded guilty to wire fraud, mail fraud, and money laundering for his role in the scheme.
Gilner and Bochinski promoted a series of purported high-yield investment programs to investors throughout the United States, including friends and acquaintances of Gilner in Florida, as well as individuals in Massachusetts, Pennsylvania, Nevada, and Virginia. The men promised extraordinary rates of return on the investments within a short period of time, and also pledged that investors’ principal would be insured or maintained in an escrow account. Once investors sent their money to either Gilner or Bochinski, however, the defendants diverted the funds for other uses, including their own personal use.
In order to lull investors into believing that their funds had been invested as promised, Bochinski and Gilner typically made at least some purported “return” payments using money from other investors. In some instances, Bochinski and Gilner attempted to return principal to frustrated investors by using counterfeit checks.
Troy Man Pleads Guilty to Illegal Possession of A FirearmRead the Press Release
TROY, NEW YORK – RICHARD S. ELY, 27, of Troy, New York, entered a guilty plea yesterday before the Honorable Mae A. D’Agostino to an indictment charging him with being a convicted felon in possession of a firearm announced United States Attorney Richard S. Hartunian, Joseph Anarumo, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and Police Chief Steven Krokoff of the Albany Police Department. The defendant is facing a maximum sentence of ten years in prison, a term of supervised release of up to three years, and a maximum fine of $250,000. ELY is being detained pending his sentencing which is scheduled for February 20, 2014.
According to the plea agreement: On June 7, 2012, a search was conducted at ELY’s residence in Troy, New York. The search of ELY’s residence resulted in the seizure of a .22 caliber firearm and ammunition which belonged to ELY. ELY had previously been convicted of two felonies: (1) a 2007 conviction for criminal sale of a controlled substance and (2) a 2012 conviction for aggravated driving while under the influence with a child under age fifteen as a passenger.
This prosecution resulted from an investigation conducted by the Albany Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives Albany Field Office. The case is being prosecuted by Assistant United States Attorney Wayne A. Myers.
Three Men Charged with Committing Armed Bank Robberies in Southbury, Cromwell & WallingfordRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the Federal Bureau of Investigation, today announced that a federal grand jury sitting in New Haven has returned an indictment charging MICHAEL MORRIS, 59, of Bloomfield, LEROY McCOY, 47, of Manchester, and KEITH SUTHERLAND, 48, of Coventry, with conspiring to commit violent bank robberies in Southbury, Cromwell and Wallingford.
The four-count indictment was returned on October 2. MORRIS and McCOY were arrested on October 4 and are currently detained. SUTHERLAND is currently detained in state custody on unrelated charges.
According to the indictment, MORRIS, McCOY and SUTHERLAND are alleged to have participated in the armed robberies of the Naugatuck Savings Bank in Southbury on April 20, 2011, the Webster Bank in Cromwell on October 7, 2011, and the Connex Credit Union in Wallingford on April 19, 2012. The defendants are alleged to have stolen a mini-van in the New Haven area prior to each robbery.In each of these robberies, masked men armed with handguns burst into the victim banks and ordered tellers and patrons to the floor. After vaulting the counters and stuffing money from teller drawers into duffle bags, the suspects fled the banks and escaped in stolen vehicles.
A total of approximately $230,000 was taken during the three robberies.
MORRIS, McCOY and SUTHERLAND are charged with one count of conspiracy to commit bank robbery. In addition, MORRIS and McCOY are charged with three counts, and SUTHERLAND with one count, of bank robbery. Each of the charges carries a maximum term of imprisonment of 20 years.
This case has been assigned to U.S. District Judge Vanessa L. Bryant in Hartford.Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the FBI, the Connecticut State Police, and the Cromwell, Wallingford, Fairfield and Orange Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
This investigation is ongoing, and the FBI is offering a $50,000 reward for information leading to the identification, arrest and conviction of individuals involved in these and similar bank robberies. Anyone with additional information that may be helpful to the investigation is encouraged to call FBI Special Agent Lisa MacNamara at 203-996-4132.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Three Lynn Residents Sentenced in Mortgage Fraud CaseRead the Press Release
Octuber 18, 2013BOSTON – Three members of a Lynn family were sentenced today for their roles in a mortgage fraud scheme.
United States Attorney Carmen M. Ortiz and Steven Ricciardi, Special Agent in Charge of the United States Secret Service, made the announcement today. The case was investigated in cooperation with the Massachusetts State Police and the Lynn Police Department. The case was prosecuted by Assistant U.S. Attorneys John A. Capin and Brian Perez-Daple.
Steven Soto, 28, and his parents, Pedro Soto, 48, and Carmen Soto, 47, of Lynn were sentenced by U.S. District Judge Mark L. Wolf. Steven Soto was sentenced to 65 months in prison and four years of supervised release. Pedro Soto was sentenced to 48 months in prison, and three years of supervised release. Both men were ordered to pay $1,055,474 in restitution. Carmen Soto was sentenced to one year in prison, three years of supervised release, six months of home confinement, and $792,559 in restitution. Each defendant was convicted by a jury of multiple counts of mail fraud. On June 21, 2013, Steve and Pedro Soto were also convicted of aggravated identity theft.
The Soto’s operated Paradise Real Estate in Lynn and engaged in a scheme to defraud financial institutions by acquiring mortgage loans under false pretenses, including lying about the qualifications and identities of the borrowers taking out the loans. The scheme included one or more of the Sotos posing as others, recruiting straw purchasers, and submitting false loan applications. By doing so, the Sotos concealed their own roles in the mortgage scams. The Court found the loss associated with the scheme was over $1 million.Tampa Woman Pleads Guilty to Stolen Identity Refund FraudRead the Press Release
Tampa, FL – Acting United States Attorney A. Lee Bentley, III announces that Tressa V. Guy (41, Tampa) yesterday pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft. Guy also agreed to forfeit $790,421.28 to the United States as proceeds of the offense. Guy will be sentenced on January 9, 2014, and faces up to twenty-two years in prison.
According to the plea agreement, Guy and her co-conspirators orchestrated a scheme to defraud the United States Treasury by causing fraudulent federal income tax returns to be filed using stolen identities, soliciting personal identifying information and addresses from co-conspirators in Florida and Georgia for use in the scheme, and coordinating the withdrawal of fraudulently-obtained tax refund amounts from prepaid debit cards. The identities used to file the fraudulent tax returns in this scheme belonged to individuals living in various states across the country. As part of the conspiracy, at least 322 federal income tax returns for tax year 2011 were filed from nine IP addresses claiming refunds of $2,701,844.00 and resulting in a loss to the IRS of $790,421.28.
This case was investigated by the Internal Revenue Service, the Tampa Police Department, and the Monroe County, Georgia Sheriff’s Office with assistance from the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Matthew J. Mueller and Trial Attorney Jason H. Poole of the Department of Justice, Tax Division.
Stow Man Charged for $744,000 Scheme to Defraud His EmployerRead the Press Release
A criminal information was filed charging a Stow man with 10 counts related to a $744,000 scheme in which he ordered equipment at his company but then resold it for personal profit, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Thomas A. Steiger, age 45, faces six counts of wire fraud and four counts of interstate transportation of property obtained by fraud.
Steiger worked as the facility manager of the truck repair and cleaning departments at Voith Industrial Services’ plant in Walton Hills. The company had a contract with Ford Motor Company to provide parts and repair services for industrial equipment at Ford’s stamping plant in Walton Hills, according to the information.
From January 2011 through January 2013, Steiger equipment that neither Voith nor Ford needed, including infrared cameras, oscilloscopes, particle counters, earth-ground testers and Fluke meters. He then resold it to third parties, primarily an individual in San Diego, according to the information.
Steiger caused Voith to pay for the equipment but had it delivered to himself personally. He then shipped the equipment via UPS and had the payments from third-party purchasers wired to his personal bank account, according to the information.
He also had Voith purchase and pay for items that Steiger ordered for his personal use, including a laptop computer, a chainsaw, rock salt, a snow thrower and other items, according to the information.
Overall, Steiger caused Voith to make purchases totaling $744,109 for equipment the company never received, was sold by Steiger for his personal profit or was kept for his personal use, according to the information.
If convicted, the defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. The sentence will not exceed the statutory maximum and in most cases will be less than the maximum.
This case is being handled by Assistant United States Attorney James V. Moroney following an investigation by the Federal Bureau of Investigation.
An information is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Sioux City Community Health Center Pays $200,000 to Resolve False Claims Act AllegationsRead the Press Release
Siouxland Community Health Center (SCHC), a community health center in Sioux City, has agreed to pay $200,000 to resolve allegations that it violated the Federal False Claims Act and the State of Iowa False Claims Act. The United States and the State of Iowa contend that SCHC improperly submitted claims to Iowa Medicaid for dental outreach services performed on children who were not eligible for the service because they were either recently treated in SCHC’s dental clinic or were recently the recipient of SCHC’s dental outreach services. As part of the settlement, SCHC did not admit to any wrongdoing or liability.
“It is important that all entities participating in the Medicaid system abide by all of the rules and provide only medically necessary services,” said Sean R. Berry, the United States Attorney for the Northern District of Iowa. “Our office will continue to hold providers accountable to ensure that funds made available for public health purposes are properly utilized.”The state's Medicaid Program Integrity Unit initiated the investigation. False Claims Act cases also arise under the qui tam, or whistleblower provision of the Federal False Claims Act. Under those provisions, a private party may file suit upon behalf of the United States for false claims and share in any recovery.
Shinholster Sentenced for Food Stamp Fraud and Money LaunderingRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Elbert Eugene Shinholster, age 77, of Wilkinson County, Georgia, was sentenced on Friday, October 18, 2013, by the Honorable C. Ashley Royal, Chief United States District Judge, in Macon, Georgia, to serve forty (40) months imprisonment and to pay $4,680,557.20 in restitution to the food stamp program, Department of Health and Services, as the result of his plea of guilty on January 30, 2012, to federal charges of one count each of food stamp fraud and money laundering.As part of his plea of guilty, Mr. Shinholster admitted that, as the owner and operator of Shinholster’s Grocery and Meat Market located in Irwinton, Georgia, he illegally conspired with almost 2,000 food stamp recipients to defraud the food stamp program. As part of the scheme each food stamp recipient would provide Mr. Shinholster with an electronic benefits transfer (EBT) card and personal identification number. Mr. Shinholster would then run the EBT card through the point of sale machine administered by the Food Stamp Program as though the cardholder had purchased food when, in fact, the cardholder got cash instead. Mr. Shinholster admitted that he knew that an EBT card was to be used to purchase food only and not to be sold for cash. The illegal EBT debit would include an additional thirty (30) per cent of the cash amount as profit for Mr. Shinholster.
“The food stamp program was established for the noble purpose of providing food for needy families, especially the children of those families. Not only did Mr. Shinholster defraud the program, he damaged it by providing ammunition to those detractors who believe that this type of government program is rife with fraud and should be eliminated. With every dollar that Mr. Shinholster took for himself, a needy child in Georgia could have been fed,” said United States Attorney Michael Moore.
“This was a case of greed and a serious crime,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, Internal Revenue Service Criminal Investigations.
The case was investigated by the Internal Revenue Service Criminal Investigations. The case was prosecuted by Assistant United States Attorneys Michael Solis and Danial Bennett.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Sentences for October 15 – 18, 2013Read the Press Release
Michael A. Guara, 33, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 18, 2013, for conspiracy to possess with intent to distribute, and to distributing 50-200 grams of methamphetamine. Guara was arrested in Cheyenne, Wyoming. He received 99 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $200.00 special assessment and a $500.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Stephen Rodger Campbell, 37, of Auburn, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 18, 2013, for possession of child pornography. Campbell was arrested in Auburn, Wyoming. He received 120 months imprisonment, to be followed by a life term of supervised release, and was ordered to pay a $100.00 special assessment and a $1,000.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Daniel Serrano-Alvarado, 39, of El Salvador, was sentenced by Federal District Court Judge Alan B. Johnson on October 17, 2013, for illegal re-entry of a previously deported alien into the United States. Serrano-Alvarado was arrested in Casper, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Joel Molina-Cruse, aka Joel Escorza-Hernandez, 34, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on October 17, 2013, for illegal re-entry of a previously deported alien into the United States. Molina-Cruse was arrested in Rawlins, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
James Davis, 38, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 17, 2013, for conspiracy to possess with intent to distribute, and to distribute methamphetamine and for distribution of at least 1.5 kilograms but not more than 15 kilograms of a mixture or substance containing a detectable amount of methamphetamine. Davis was arrested in Rock Springs, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Kyle Braaten, 33, of Thermopolis, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 16, 2013, for possession of child pornography. Braaten was arrested in Thermopolis, Wyoming. He received four months imprisonment, to be followed by twenty years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Vanessa Birkenkamp, 29, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 16, 2013, for conspiracy to possess with intent to distribute, and to distributing at least 50 grams of a mixture or substance containing a detectable amount of methamphetamine. Birkenkamp was arrested in Cheyenne, Wyoming. She received 46 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the U.S. Drug Enforcement Administration.
Ann Marie Centore, 42, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 16, 2013, for conspiracy to possess with intent to distribute, and to distributing at least 50 grams but not more than 200 grams of a mixture or substance containing a detectable amount of methamphetamine. Centore was arrested in Burlington, Colorado. She received 37 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the U.S. Drug Enforcement Administration.
Enrique Castillo-Nunez, 30, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 15, 2013, for illegal re-entry of a previously deported alien into the United States. Castillo-Nunez was arrested in Cheyenne, Wyoming. He received six months imprisonment, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was by investigated U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Douglas R. Cullison, 38, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 15, 2013, for conspiracy to possess with intent to distribute, and to distributing 200-350 grams of methamphetamine. Cullison was arrested in Cheyenne, Wyoming. He received 46 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Lance A. Garcia, 28, of Colorado Springs, Colorado, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 15, 2013, for conspiracy to possess with intent to distribute, and to distributing 500 grams to 1.6 kilograms of methamphetamine. Garcia was arrested in Colorado Springs, Colorado. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and a $900.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Sea-Tac Airport Copper Thief Pleads Guilty to Theft of Public PropertyRead the Press Release
A repeat offender who stole thousands of feet of copper wire from runway light towers at Seattle-Tacoma International Airport pleaded guilty October 17, 2013 to theft of public property, announced U.S. Attorney Jenny A. Durkan. TIMOTHY LYNCH, 50, faces up to ten years in prison when sentenced by U.S. District Judge James L. Robart on January 13, 2014.
According to records file in the case, the theft was discovered on February 12, 2013, when a Port of Seattle employee noticed damage to the fence surrounding the runway light structures near South 188th Street and Des Moines Memorial Drive. In total, approximately 7,200 feet of copper cable was stolen from Federal Aviation Administration towers, rendering them inoperable and potentially posing a threat to airline safety. LYNCH admits that he entered a secured area of Sea-Tac airport and removed copper cable connected to the light towers. Replacing the copper wire and repairs to damages cost the FAA more than $30,000.
Under the terms of the plea agreement, the parties will recommend that the Court sentence Lynch to 30 months in prison.
The case is being investigated by the FBI Safe Streets Task Force which includes officers from the Port of Seattle Police Department, the Seattle Police Department and the King County Sheriff’s Department. The case is being prosecuted by Executive Assistant United States Attorney Thomas Bates.
San Antonio Man Sentenced to 18 Months in Federal Prison on Mail Fraud ConvictionRead the Press Release
Case Related to the Fraud Conviction of Former UMC Vice President Greg Bruce
LUBBOCK, Texas — Rodolfo Reyes Mata, aka Rudy Mata, 40, of San Antonio, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to18 months in federal prison and ordered to pay $54,750 in restitution following his guilty plea in July 2012 to one count of mail fraud and aiding abetting. Judge Cummings ordered that he surrender to the Bureau of Prisons on November 22, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
From November 2010 through September 2011, Mata submitted 15 false and fraudulent invoices to University Medical Center in Lubbock (UMC) for ATAM Technology Solutions, knowing that the submission of such invoices would cause UMC to pay the invoices by mailing checks to addresses listed. During the scheme, Mata and his friend, Robert Gregory Bruce, the former Vice President of UMC, caused UMC to pay approximately $54,750 to ATAM Technology Solutions for goods and services that were not provided. ATAM Technology Solutions, according to the factual resume filed in the case, was in fact, an alter ego of Mata. Mata used these funds for personal living expenses, educational expenses and travel and entertainment expenses.
Bruce was sentenced last month to 51 months in federal prison and ordered to pay $737,492 in restitution to UMC. He pleaded guilty in June 2013 to his part in the same offense. In documents filed in Bruce’s case, he admitted that from June 2007 to December 12, 2011, he conspired with Mata to submit false and fraudulent invoices for two companies, B.R. Media Monitoring (an alter ego of Bruce) and ATAM Technology Solutions, knowing that the submission of such invoices would cause UMC to pay the fake invoices. Over the course of the conspiracy, UMC paid approximately $681,908 on invoices for fake companies that did not provide goods or services as described in the invoices. According to plea papers filed, Bruce used these funds, in part, to pay Mata’s personal living expenses, educational expenses, and travel and entertainment expenses.
The cases were investigated by the FBI. Assistant U.S. Attorney Amanda R. Burch prosecuted.
San Angelo Man Sentenced to 97 Months in Federal Prison for Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — Joshua I. Suter, 24, of San Angelo, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 97 months in federal prison following his guilty plea in July 2013 to one count of possession of child pornography. He has been in custody since his release was revoked earlier this month. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, while living in San Angelo, Suter owned a computer which he kept at his residence. That computer was connected to the Internet. In the course of using the Internet to search for depictions of minors engaged in sexually explicit conduct, Suter downloaded and viewed numerous child pornography videos.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Air Force Office of Special Investigations, Goodfellow Air Force Base. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Role in Drug Conspiracy Earns Philadelphia Man More Than 16 Years in PrisonRead the Press Release
Lawrence Wilson, 24, of Philadelphia, was sentenced today to 194 months in prison for his role in a large scale drug organization responsible for transporting multiple kilograms of cocaine and hundreds of pounds of marijuana to the Eastern District of Pennsylvania. Wilson’s brother, Michael, ran the organization. In addition to the conspiracy, Lawrence Wilson was a major participant in the kidnapping of two female drug couriers on January 17, 2011. The women had just returned from Los Angeles, California with four suitcases containing marijuana and cocaine for the organization. While waiting for the suitcases at the baggage claim carousel at the Philadelphia International Airport, a rival drug trafficking organization stole one of the suitcases. Lawrence Wilson and other members of the organization believed the women had set up the robbery. Lawrence Wilson and co-conspirator held the women at gunpoint. Wilson was also involved in money laundering conspiracy, depositing approximately $5000 into the Bank of America account being used by the California drug supplier.
Wilson pleaded guilty the day of trial, in July, to conspiring to distribute 500 grams or more of the mixture and substance containing a detectable amount of cocaine and 100 kilograms or more of a mixture and substance containing a detectable amount of marijuana, one count of aiding and abetting the attempt to possess with intent to distribute 500 grams or more of cocaine, one count of aiding and abetting the possession and brandishing a firearm in furtherance of drug trafficking crime, one count of conspiracy to commit money laundering, and one count of money laundering.
In addition to the prison term, U.S. District Court Judge Michael Baylson ordered a $5,000 fine and 5 years of supervised release.
The case was investigated by Federal Bureau of Investigation and the Philadelphia Police Department. It was prosecuted by Assistant United States Attorney Karen S. Marston.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Riverview Woman Indicted for Stolen Identity Refund FraudRead the Press Release
Tampa, FL – Acting United States Attorney A. Lee Bentley, III announces the unsealing of a fourteen-count indictment charging Ashley C. Guy with multiple counts of wire fraud, aggravated identity theft, possession of unauthorized access devices, and destruction of records in a federal investigation. If convicted, she faces a maximum penalty of twenty years in federal prison on each wire fraud count; twenty years on the destruction of records count; and 10 years in federal prison on the access device count, all to be followed by two years in prison for each aggravated identity theft count.
According to the indictment, Guy devised and participated in a scheme to defraud the United States Treasury by causing federal income tax returns fraudulently claiming tax refunds to be filed with the IRS. Guy directed the refunds claimed on these tax returns to be electronically deposited onto prepaid debit cards that were issued in the names of third parties without the third parties’ knowledge. The indictment further alleges that as part of the scheme, Guy destroyed and attempted to destroy documents, records, and tangible objects containing the means of identification of third parties with the intent to impede, obstruct, and influence a federal investigation.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.This case was investigated by the Internal Revenue Service and the Tampa Police Department, with assistance from the Hillsborough County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Matthew J. Mueller and Trial Attorney Jason H. Poole of the Department of Justice, Tax Division.
Remarks Investiture of Kenneth Gonzales to the United States District Court District of New MexicoRead the Press Release
John Walsh
United States Attorney
District of ColoradoIt's a great honor for me to speak here on behalf of the U.S. Attorney's community and the Department of Justice at the investiture of a great friend, Ken Gonzales. We have a several U.S. Attorneys here, at their own expense: Sandy Coates from Oklahoma City, Ken Magidson from Houston, and Steve Yarbro, Acting U.S. Attorney in New Mexico.
Now, standing before all these judges makes me mindful of my duty of candor as an officer of the court. For that reason, I am duty bound to tell you that for Ken’s fellow U.S. Attorneys, this is one of those bittersweet moments we all face in life.
First and foremost, we U.S. Attorneys feel great happiness, satisfaction and pride in Ken taking on this new position for which he is so remarkably well suited. We also are happy for the District of New Mexico. You are formally inducting today a judge whom I am confident will over time become a towering figure – though a quiet and unassuming one – in the history of this district. This is a judge destined for great things, and for great service to the people of New Mexico and the nation.
But at the same time, speaking as an officer of the court and as representative of the 93 U.S. Attorneys around the United States, it's hard not feel a certain wistfulness. None of you will be surprised to hear that Ken has always stood out among U.S. Attorneys nationally, and has enjoyed the particular respect and appreciation his colleagues.
That's not because he was the loudest. He was not. It's not because he was the best connected back East and aiming for the reins of power in DC. He was not. It is not because he pushed his way to the limelight in front of every issue. He did not. In fact, the affection and profound respect that Ken Gonzales has earned nationally flowed precisely from the fact that he was and did none of those things. Instead, Ken quietly and effectively answered the call when needed, no matter how difficult the assignment, and without expectation of personal reward. He brought a firm professionalism, steady judgment and a bottomless well of integrity to the job that together commanded our attention and compelled our admiration. He was, when all is said and done, a U.S. Attorney's U.S. Attorney -- an example for all of us of how to do the job.
Of course, all of us as U.S. Attorneys know that our time in these positions is comparatively short – unlike, say, the service of U.S. District Judges. In Ken’s case, we all knew he was bound for bigger things. I know I speak for all us in celebrating the fact that Ken will now have an opportunity to serve the public in a place of enormous responsibility and authority, where he can bring to bear all the greatness of his mind and spirit to serve the public, without regard to the shifting winds of politics and elections.
On a personal note, Ken has been a constant friend and source of counsel for me over these years as well, and I expect will continue to be. From the day that Ken showed up at my swearing in as U.S. Attorney three years ago in Denver until a few weeks ago at the 10th Circuit Bench and Bar conference, Ken has been for me one of those crucial friends that we are all lucky to have -- the friend who keeps your feet on the ground, who provides a sense of perspective and context, who makes hard times easier, and who keeps the good times from going to your head. I know that Ken played that role not just for me, but for many others.
And what better temperament and frame of mind could there be than that for a United States District Judge? So, on behalf of the U.S. Attorney's community, let me say to Chief Judge Armijo: The District of New Mexico is getting a tremendous gift in Ken Gonzales. I know you will use it well.
By the way, I thought it was only appropriate that Ken will be starting his time as a U.S. District Judge in Las Cruces, where he started his career as an Assistant U.S. Attorney, and also where border issues are so important. Ken talked to me constantly about the intense border challenges this district faces. But I thought it was odd you moved him to the Southern border, as in our conversations he was always talking to me about New Mexico's troublesome northern border!
Eric Holder, the Attorney General of the United States, was unable to make it here today because of all the hubbub y algarabía right now in Washington. He sends both his deep regrets and a letter that he asked me to read:
[Read letter]
On that note of national recognition and appreciation, let me conclude.
Ken, felicitaciones. Vamos a echarte de menos, amigo. Suerte, y nos vemos pronto.
Real Estate Broker and a Loan Officer Sentenced to Federal Prison for Mortgage Fraud ConvictionsRead the Press Release
ALBUQUERQUE – A real estate broker and a loan officer, both from Albuquerque, N.M., will be serving federal prison sentences for their wire fraud convictions, announced Acting U.S. Attorney Steven C. Yarbrough and Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI.
Keith Michael Courtney, 31, was sentenced on Oct. 9, 2013, to 24 months in prison followed by three years of supervised release. His co-defendant Jason Johns, 40, was sentenced yesterday to five months in prison followed by five months of home detention and three years of supervised release. Courtney and Johns also were ordered jointly to pay $493,230.88 in restitution and a $1.6 million money judgment to the United States.
Courtney and Johns were indicted in Nov. 2011, on wire fraud charges. The three-count indictment alleged that between Nov. 2006 and Sept. 2007, Courtney and Johns schemed to defraud mortgage lenders by using straw buyers to apply for residential mortgage loans. At the time of the offenses charged, Courtney was part owner of Black Diamond Construction Company (BDCC), Veritas Mortgage Company and Polaris Realty, all of which maintained offices in Albuquerque. Johns was a loan officer with Veritas Mortgage Company.
In Feb. 2012, Johns pled guilty to the indictment. Johns admitted participating in the unlawful scheme alleged in the indictment which resulted in three wire transfers of funds in the aggregate amount of $1,601,775.84 by mortgage lenders based on false and fraudulent representations made in connection with the sale of two residences built by Courtney’s business.Courtney was found guilty by a jury on the three counts of the indictment on March 28, 2013, after a four-day trial. The evidence at trial showed that Courtney’s company, BDCC, built two houses, one in Albuquerque and the other in Santa Fe. After the houses were completed, Courtney and Johns solicited straw buyers to purchase the houses, using the names and credit histories of the straw buyers to obtain financing from Plaza Home Mortgage Company and Lehman Brothers Bank. The loan applications falsely stated that the borrowers were buying the houses as primary residences, when in fact they had no intention of ever living in the houses. The straw buyers put no money into the transactions, did not make the mortgage payments, and were to receive $5,000.00 once the houses were resold. They were told that Courtney would make the mortgage payments until the houses were resold.
As a result of the false loan applications, which did not inform the lenders that the borrowers were straw borrowers, Plaza Home Mortgage Company wired two loans for $660,772.50 and $99,250.00 in connection with the Albuquerque house. Lehman Brothers Bank wired $641,803.34 for a loan in connection with the Santa Fe house. Courtney obtained loans in the aggregate amount of $1,601,775.84 from the two mortgage lenders based on the fraudulent transactions. Courtney made mortgage payments on each property for a time after the transactions closed but ultimately stopped making payments on both, at which point the houses went into foreclosure. The mortgage companies suffered losses as a result.
This case was investigated by the Albuquerque Division of the FBI and was prosecuted by Assistant U.S. Attorney Mary L. Higgins.Press Releases for the U.S. Attorney's Office During the Government ShutdownRead the Press Release
During the government shutdown, press releases for the U.S. Attorney’s Office, Western District of Louisiana, were limited. Today, U.S. Attorney Stephanie A. Finley announces the following results from matters occurring from October 1, 2013 through October 17, 2013.MOTHER, DAUGHTER SENTENCED FOR CONSPIRACY TO COMMIT BANK ROBBERIES
LAKE CHARLES, La. – Evie Bowin Herrin, 58, of Kirbyville, Texas, and her daughter Amelia Darci Crew, 31, of Cleveland, Texas, were sentenced on October 3, 2013 by U.S. District Judge Patricia Minaldi for conspiracy to commit bank robbery. Herrin received 86 months in prison, and Crew received 51 months in prison. They both received three years of supervised release. Herrin was ordered to pay a $5,000 fine and $17,730 restitution. They pleaded guilty June 27, 2013.
According to evidence presented at the guilty plea, the defendants admitted to stealing $17,730 from banks in Louisiana and Texas. Herrin admitted to entering three banks wearing a disguise. After entering the banks, Herrin would point what looked like a handgun at a teller and present the teller with a note saying to hand over strapped bundles of 100 and 20 dollar bills or she would shoot the bank employees. Herrin left each bank in a car driven by Crew. The robberies occurred on February 13, 2012 at an Iberia Bank in Kinder, La., February 28, 2012 at a Citizens National Bank in Henderson, Texas, and March 15, 2012 at a MidSouth Bank in Sulphur, La.
The FBI and the Kinder, Sulphur, and Henderson, Texas police departments investigated the case, and Assistant U.S. Attorney Joseph T. Mickel prosecuted the case.
FORT POLK MAN SENTENCED FOR ABUSIVE SEXUAL CONTACT WITH A MINOR
LAKE CHARLES, La. – Antwon M. Sewell, 20, of Fort Polk, La., was sentenced on October 3, 2013, by U.S. District Judge Patricia Minaldi, to 15 months in prison with five years of supervised release for committing abusive sexual contact with two minors. Sewell pleaded guilty June 13, 2013.
According to evidence presented in court, Sewell was at a party taking place at an unoccupied residence on the Fort Polk Military base on July 18, 2012. While at the party, he had sexual contact with a 13-year-old and a 14-year-old girl at different times that night. He admitted to providing alcohol to the minors attending the party.
The U.S. Army Criminal Investigation Command and the FBI conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.MEXICAN NATIONAL SENTENCED FOR ILLEGAL RE-ENTRY, FAILURE TO REGISTER AS A SEX OFFENDER
SHREVEPORT, La. – Carlos Galvan-Lopez, 43, of Mexico, was sentenced on October 3, 2013 by U.S. District Judge Maurice Hicks Jr. to 50 months in prison for illegally re-entering the United States and failing to register as a sex offender. The defendant is subject to deportation upon release. He pleaded guilty on June 3, 2013.
According to evidence presented at the guilty plea, the Hidalgo, Texas, Sheriff’s Office arrested Galvan-Lopez on December 18, 1995 for aggravated sexual assault. He served time in prison and was deported on December 21, 2010. He was arrested in Shreveport at his place of employment on April 19, 2013, after it was discovered that he had illegally returned to the United States and had not registered as a sex offender.
The U.S. Department of Homeland Security, Homeland Security Investigations and the U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
FORMER MONROE RESIDENT SENTENCED TO 15 MONTHS IN PRISON FOR STEALING MORE THAN $100,000 FROM CREDIT CARD COMPANY
MONROE, La. – Durar Mohammed Judeh, 48, of Tupelo, Miss., was sentenced on October 7, 2013 by U.S. District Court Judge Robert G. James to 15 months in prison and five years of supervised release for bank fraud. He was also ordered to pay $101,280 in restitution. He pleaded guilty May 29, 2013.
In April 2008, Chase Bankcard Services alerted the U.S. Postal Inspection Service that nine credit cards listed for addresses in Monroe had been opened fraudulently. Judeh admitted to using a relative’s personal information to open the accounts and deposited money into an account he controlled, using the cards to steal more than $101,280.
The U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
MOREHOUSE PARISH WOMAN SENTENCED TO 12 MONTHS IN PRISON FOR STEALING FROM BANK CUSTOMERS
MONROE, La. – Vickie Lenoir, 48, of Mer Rouge, La., was sentenced on October 7, 2013, by U.S. District Court Judge Robert G. James, to 12 months in prison and five years of supervised release for embezzling money from customers at the Capital One bank where she worked. She was also ordered to pay $95,673 in restitution. Lenoir pleaded guilty May 14, 2013.
According to evidence presented in court, from December 2008 until October 2012, Lenoir admitted to embezzling more than $95,673 from seven customer accounts at a Bastrop, La., Capital One Bank where she was employed. The missing money was reported after customers began noticing unusual activity in their accounts.
The FBI investigated the case. Assistant U.S. Attorney D. Cytheria Jernigan prosecuted the case.
FORT POLK MAN SENTENCED TO 30 YEARS IN PRISON FOR SECOND DEGREE MURDER, ATTEMPTED MURDER
LAKE CHARLES, La. – Marcus Patterson Carey, 28, of Canton, Ohio, was sentenced on October 8, 2013 by U.S. District Judge Patricia Minaldi, to 30 years in prison for second degree murder and 20 years in prison for attempted second degree murder with both sentences to be served concurrently. He was also ordered to serve five years of supervised release. Carey pleaded guilty on June 12, 2013.
Carey admitted that on June 19, 2010, he killed a Fort Polk soldier by striking him with a hammer and stabbing him multiple times. He also admitted to attempting to kill a former soldier by striking that person with a hammer and stabbing that person multiple times as well.
The U.S. Army Criminal Investigation Command and the FBI conducted the investigation. United States Attorney Stephanie A. Finley and Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
JURY CONVICTS OPELOUSAS MAN FOR POSSESSING AND RECEIVING CHILD PORNOGRAPHY
Defendant was a former child psychiatrist
LAFAYETTE, La. – A federal jury found former child psychiatrist Gary Jefferson Byrd, 71, of Opelousas, La., guilty on October 8, 2013 of possessing and receiving child pornography. United States District Judge Richard T. Haik presided over the trial.
Following a two-day trial, a jury found Byrd guilty of one count of possession of child pornography and one count of receiving child pornography after deliberating for 40 minutes. Based on witness testimony and documents admitted into evidence, from February 2008 to April 2011, Byrd ordered 44 compact discs containing videos of child pornography from a Canadian company. United States Postal Inspectors executed a search warrant on Byrd’s home and found stacks of compact discs containing thousands of images of child pornography that Byrd had downloaded from the Internet. He also printed hundreds of images of child pornography that he kept in files next to his bed.
Byrd was previously convicted in 1992 by a federal jury of possessing child pornography and served 10 years in prison for that crime. Prior to his conviction, his employment was as a child psychiatrist.
Because of Byrd’s prior child pornography conviction, he faces 5 years to 20 years in prison and a $250,000 fine for possession of child pornography, and he also faces 15 years to 40 years in prison and a $250,000 fine for receiving child pornography. A sentencing date has not been set.
This case is part of Project Safe Childhood, a U.S. Department of Justice launched nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (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 U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be submitted anonymously.The U.S. Postal Service Investigations conducted the investigation. Assistant U.S. Attorney John Luke Walker is prosecuting the case.
Press Releases for the U.S. Attorney's Office During the Government ShutdownRead the Press Release
During the government shutdown, press releases for the U.S. Attorney’s Office, Western District of Louisiana, were limited. Today, U.S. Attorney Stephanie A. Finley announces the following results from matters occurring from October 1, 2013 through October 17, 2013.MOTHER, DAUGHTER SENTENCED FOR CONSPIRACY TO COMMIT BANK ROBBERIES
LAKE CHARLES, La. – Evie Bowin Herrin, 58, of Kirbyville, Texas, and her daughter Amelia Darci Crew, 31, of Cleveland, Texas, were sentenced on October 3, 2013 by U.S. District Judge Patricia Minaldi for conspiracy to commit bank robbery. Herrin received 86 months in prison, and Crew received 51 months in prison. They both received three years of supervised release. Herrin was ordered to pay a $5,000 fine and $17,730 restitution. They pleaded guilty June 27, 2013.
According to evidence presented at the guilty plea, the defendants admitted to stealing $17,730 from banks in Louisiana and Texas. Herrin admitted to entering three banks wearing a disguise. After entering the banks, Herrin would point what looked like a handgun at a teller and present the teller with a note saying to hand over strapped bundles of 100 and 20 dollar bills or she would shoot the bank employees. Herrin left each bank in a car driven by Crew. The robberies occurred on February 13, 2012 at an Iberia Bank in Kinder, La., February 28, 2012 at a Citizens National Bank in Henderson, Texas, and March 15, 2012 at a MidSouth Bank in Sulphur, La.
The FBI, and the Kinder, Sulphur and Henderson, Texas police departments investigated the case, and Assistant U.S. Attorney Joseph T. Mickel prosecuted the case.
FORT POLK MAN SENTENCED FOR ABUSIVE SEXUAL CONTACT WITH A MINOR
LAKE CHARLES, La. – Antwon M. Sewell, 20, of Fort Polk, La., was sentenced on October 3, 2013, by U.S. District Judge Patricia Minaldi to 15 months in prison with five years of supervised release for committing abusive sexual contact with two minors. Sewell pleaded guilty June 13, 2013.
According to evidence presented in court, Sewell was at a party taking place at an unoccupied residence on the Fort Polk Military base on July 18, 2012. While at the party, he had sexual contact with a 13-year-old and a 14-year-old girl at different times that night. He admitted to providing alcohol to the minors attending the party.
The U.S. Army Criminal Investigation Command and the FBI conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.MEXICAN NATIONAL SENTENCED FOR ILLEGAL RE-ENTRY, FAILURE TO REGISTER AS A SEX OFFENDER
SHREVEPORT, La. – Carlos Galvan-Lopez, 43, of Mexico, was sentenced on October 3, 2013 by U.S. District Judge Maurice Hicks Jr. to 50 months in prison for illegally re-entering the United States and failing to register as a sex offender. The defendant is subject to deportation upon release. He pleaded guilty on June 3, 2013.
According to evidence presented at the guilty plea, the Hidalgo, Texas, Sheriff’s Office arrested Galvan-Lopez on December 18, 1995 for aggravated sexual assault. He served time in prison and was deported on December 21, 2010. He was arrested in Shreveport at his place of employment on April 19, 2013, after it was discovered that he had illegally returned to the United States and had not registered as a sex offender.
Homeland Security Investigations and the U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
FORMER MONROE RESIDENT SENTENCED TO 15 MONTHS IN PRISON FOR STEALING MORE THAN $100,000 FROM CREDIT CARD COMPANY
MONROE, La. – Durar Mohammed Judeh, 48, of Tupelo, Miss., was sentenced on October 7, 2013 by U.S. District Court Judge Robert G. James, to 15 months in prison and five years of supervised release for bank fraud. He was also ordered to pay $101,280 in restitution. He pleaded guilty May 29, 2013.
In April 2008, Chase Bankcard Services alerted the U.S. Postal Inspection Service that nine credit cards listed for addresses in Monroe had been opened fraudulently. Judeh admitted to using a relative’s personal information to open the accounts and deposited money into an account he controlled, using the cards to steal more than $101,280.
The U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
MOREHOUSE PARISH WOMAN SENTENCED TO 12 MONTHS IN PRISON FOR STEALING FROM BANK CUSTOMERS
MONROE, La. – Vickie Lenoir, 48, of Mer Rouge, La., was sentenced on October 7, 2013, by U.S. District Court Judge Robert G. James to 12 months in prison and five years of supervised release for embezzling money from customers at the Capital One bank where she worked. She was also ordered to pay $95,673 in restitution. Lenoir pleaded guilty May 14, 2013.
According to evidence presented in court, from December 2008 until October 2012, Lenoir admitted to embezzling more than $95,673 from seven customer accounts at a Bastrop, La., Capital One Bank where she was employed. The missing money was reported after customers began noticing unusual activity in their accounts.
The FBI investigated the case. Assistant U.S. Attorney D. Cytheria Jernigan prosecuted the case.
FORT POLK MAN SENTENCED TO 30 YEARS IN PRISON FOR SECOND DEGREE MURDER, ATTEMPTED MURDER
LAKE CHARLES, La. – Marcus Patterson Carey, 28, of Canton, Ohio, was sentenced on October 8, 2013 by U.S. District Judge Patricia Minaldi, to 30 years in prison for second degree murder and 20 years in prison for attempted second degree murder with both sentences to be served concurrently. He was also ordered to serve five years of supervised release. Carey pleaded guilty on June 12, 2013.
Carey admitted that on June 19, 2010, he killed a Fort Polk soldier by striking him with a hammer and stabbing him multiple times. He also admitted to attempting to kill a former soldier by striking that person with a hammer and stabbing that person multiple times as well.
The U.S. Army Criminal Investigation Command and the FBI conducted the investigation. United States Attorney Stephanie A. Finley and Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
JURY CONVICTS OPELOUSAS MAN FOR POSSESSING AND RECEIVING CHILD PORNOGRAPHY
Defendant was a former child psychiatrist
LAFAYETTE, La. – A federal jury found former child psychiatrist Gary Jefferson Byrd, 71, of Opelousas, La., guilty on October 8, 2013 of possessing and receiving child pornography. United States District Judge Richard T. Haik presided over the trial.
Following a two-day trial, a jury found Byrd guilty of one count of possession of child pornography and one count of receiving child pornography after deliberating for 40 minutes. Based on witness testimony and documents admitted into evidence, from February 2008 to April 2011, Byrd ordered 44 compact discs containing videos of child pornography from a Canadian company. United States Postal Inspectors executed a search warrant on Byrd’s home and found stacks of compact discs containing thousands of images of child pornography that Byrd had downloaded from the Internet. He also printed hundreds of images of child pornography that he kept in files next to his bed.
Byrd was previously convicted in 1992 by a federal jury of possessing child pornography and served 10 years in prison for that crime. Prior to his conviction, his employment was as a child psychiatrist.
Because of Byrd’s prior child pornography conviction, he faces 5 years to 20 years in prison and a $250,000 fine for possession of child pornography, and he also faces 15 years to 40 years in prison and a $250,000 fine for receiving child pornography. A sentencing date has not been set.
This case is part of Project Safe Childhood, a U.S. Department of Justice launched nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (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 U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be submitted anonymously.The U.S. Postal Service Investigations conducted the investigation. Assistant U.S. Attorney John Luke Walker is prosecuting the case.
Press ReleaseRead the Press Release
ANNANDALE ACCOUNTANT SENTENCED TO 36 MONTHS IN PRISON FOR TAX FRAUD AND MAKING FALSE STATEMENTS TO THE GOVERNMENTALEXANDRIA, Va. – Mohammad T. Al-Suqi, 55, of Annandale, Va., was sentenced today to 36 months in prison, followed by two years of supervised release, for preparing and filing false tax returns and making false statements to federal agents when interviewed about the activities. He was also ordered to pay restitution to the Internal Revenue Service.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after sentencing by United States District Judge James C. Cacheris.
Al-Suqi was indicted by a federal grand jury on April 25, 2013, and was convicted of nineteen counts of aiding the preparation of a false income tax return, two counts of filing his own false income tax returns, and one count of making false statements to federal agents following a jury trial on July 12, 2013.
According to court records and evidence at trial, the defendant owned and operated the tax preparation businesses Ideal Accounting Solution and Mass Accounting and Tax Corp. in Falls Church, Va. For the tax years 2007 through 2010, the defendant prepared and filed on behalf of his taxpayer clients federal income tax returns that contained materially false and fraudulent information, including false itemized deductions on Schedule A and fraudulent education credits on Form 8863, all of which resulted in large federal income tax refunds for the taxpayers and at least $4 million in losses to the IRS. For his part, the defendant received fees of between $100 and $250 per return and prepared thousands of federal income tax returns during the relevant time period.
As part of the government’s investigation, the defendant also prepared a fraudulent tax return in 2011 for an undercover IRS agent posing as a taxpayer. The episode, which was recorded by the undercover agent and presented to the jury at trial, showed the defendant falsifying expenses and deductions in order to produce an income tax refund and indicating that his success as a tax preparer was associated with his ability to manufacture large refunds for his clients.
The defendant also included false and fraudulent expenses and credits on his own 2008 and 2009 federal income tax returns. In 2013, after the IRS revoked his ability to file electronic tax returns, the defendant continued to prepare and electronically file tax returns using an electronic filing number assigned to his wife, and the defendant lied to IRS agents when he was questioned about the activities.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorneys Jasmine H. Yoon and Paul J. Nathanson and former Assistant United States Attorney Charles F. Connolly prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Pittsburgh Couple Sentenced to Probation and Community Service in Computer Hacking CaseRead the Press Release
PITTSBURGH – A Pittsburgh couple have been sentenced in federal court today on their conviction of recklessly damaging a computer and password trafficking, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Jonathan Cunningham, 29, and Alyson Cunningham, 26. Each were sentenced to 3 years probation; each to pay restitution of $2,445.96 to the victim law firm; 300 hours community service; computer monitoring; and must notify any employer of this conviction.
According to information presented to the court, on Nov. 28, 2011, Alyson Cunningham had been fired from law firm located in Pittsburgh, PA referred to as "VG," In retaliation for the firing, Matthew West, acting at Alyson and Jonathan Cunningham's encouragement, logged into VG servers using an internal company password provided to him by Alyson Cunningham over Facebook. West utilized a VPN proxy server located in Germany to use the password to access VG servers, so as to shield his identity. Once West accessed the server, he installed software on the server which could be used to capture passwords of anyone on the firm=s network.
On Nov. 29, 2011, West sent a partner at VG law firm an email from the account [email protected] that stated that the firm's web servers had been compromised, and that their backup files had been copied and deleted. This email, which was used to notify the victim company of the hack caused by the usage of the illegally trafficked password, electronically traveled from West's computer in PA, to Google's servers in California, before arriving back at VG's server in PA. The email further stated that "we are not interested in ruining your business, but routinely checking that business is fair and just. Our motive is to solely capture and record 100% of Pittsburgh business records and operations and protect it or use it against you as we could if Anonymous had a reason and needed to." Anonymous is a loosely connected network of computer hacker/activists who are known to intrude upon computer networks for political purposes.
According to the victim company, neither Alyson Cunningham, Johnathan Cunningham, or Matthew West had authority to access their computer server, nor did they have authority to place malware onto VG's servers.
Internet chats indicate that Jonathan Cunningham was actively communicating with West during the hack into VG's servers, providing instruction and suggestions, including suggesting the use of specific VPN servers. When IM chatting with West on the night of the hack, Jonathan Cunningham and Alyson Cunningham alternated in their use of Alyson=s Skype account when communicating with West about the hack.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of the Cunninghams.
Pill Dealers Sentenced to Prison on Federal Oxycodone ChargesRead the Press Release
CHARLESTON, W.Va. – A man and woman were sentenced to federal prison on Oct. 17 on federal oxycodone charges, announced U.S. Attorney Booth Goodwin. Christy Stevens, of Charleston, was sentenced to two years and three months in prison. Stevens, 34, previously pleaded guilty in July to conspiracy to distribute oxycodone. Stevens’ co-defendant, Terry Martin, 21, of Detroit, was also sentenced on Thursday to one year and four months in prison for aiding and abetting the possession of oxycodone with intent to distribute. On July 6, 2011, police conducted a traffic stop of Stevens’ vehicle. During a search of the vehicle, police observed a large amount of cash inside Stevens’ purse. Stevens agreed to provide a statement to police regarding the source of the cash. After being advised of her Miranda rights, Stevens told police that the $8,000 in her purse were proceeds from illegal pill transactions.
Stevens provided additional information to police about a delivery of pills she was expecting from two acquaintances. The next day, Martin and a third individual were arrested outside of Stevens’ residence after police seized approximately 60 oxycodone pills from Martin’s associate. Martin admitted that he travelled with his associate from Detroit to Charleston and intended to deliver oxycodone pills to Stevens.
Stevens also told police that for eight months, she received oxycodone pills from a source of supply located in Detroit. After obtaining the pills from her source of supply, she sold the 30-milligram oxycodone pills in and around Charleston and also took a portion of the pills for her personal use.The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney John Frail handled the prosecutions. The sentences were imposed by United States District Judge Thomas E. Johnston.
The cases were prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Pierce County Deputy Sheriff Arrested on Drug Trafficking ChargeRead the Press Release
Brunswick, GA - Pierce County Sheriff's Deputy Randy Strickland, 55, was arrested on federal charges yesterday for his role in the trafficking of methamphetamine. Strickland had his initial appearance today in federal court in Brunswick, Georgia before United States Magistrate Judge James E. Graham, where he was ordered detained without a bond.
According to papers filed with the District Court, Deputy Strickland allegedly agreed to act as “security” for individuals he believed were dealing meth, by acting as the lookout. Strickland’s drug activities allegedly occurred while he was in uniform and while he was driving his police vehicle. When Pierce County Sheriff Ramsey Bennett received information about Strickland’s apparent criminal activities, he immediately requested federal law enforcement assistance.
United States Attorney Edward Tarver stated, "Police corruption leaves a permanent stain on the good work of our law enforcement community. Make no mistake that defendants who violate the trust of this community, law enforcement or otherwise, will be prosecuted to the fullest extent of the law.”
“This defendant took an oath to uphold the law and protect the citizens of Pierce County,” said ATF Special Agent in Charge Christopher Shaefer. “Instead, he is alleged to have betrayed the community he swore to protect. Corrupt officers unfortunately tarnish the badge worn proudly by the committed men and women of law enforcement. The success of this investigation would not have been possible without the dynamic level of law enforcement cooperation.”
“The result of this arrest demonstrates the strong relationships HSI has established with our federal and local partners,” says HSI Special Agent in Charge Brock D. Nicholson, Atlanta, Georgia. “It is a disappointing day when we have to arrest a law enforcement officer in a position of public trust, but maintaining the integrity of our law enforcement system is of upmost importance.”Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “Public corruption matters in general continue to be the FBI’s highest investigative priorities due to the potential it has to erode public trust. When those corrupt and illegal activities involve a law enforcement official operating within the color of law, the FBI will address them with a greater sense of urgency. While these cases constitute a serious breach of trust by the official or officer involved, the public should be reminded that the vast majority of those working within the criminal justice system are dedicated to their sworn oaths of office. Furthermore, the public should be reassured that the FBI remains committed to working vigorously with our federal, state and local partners to investigate such matters and hold these individuals committing such crimes accountable for their actions.”
Pierce County Sheriff Ramsey Bennett said, “This is a situation where there are no winners. This gives the Office of the Sheriff a black eye and erodes the confidence of the public in law enforcement. As Sheriff, I will not tolerate this type of conduct. I want to reassure the public that we will police ourselves as well as the general public.”
The present charge against Strickland carries a maximum prison sentence of 40 years, and a fine up to $5,000,000. Mr. Tarver emphasized that a criminal complaint 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 guilty beyond a reasonable doubt.This case was investigated by ATF, HSI, FBI and local law enforcement. Assistant United States Attorneys Greg Gilluly and Tania Groover are prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United states Attorney James D. Durham at (912) 201-2547.
Philadelphia Man Charged with Identity TheftRead the Press Release
Shaun Terrell Mays, 33, of Philadelphia, PA, was charged yesterday, by Information, with two counts of unauthorized use of one or more access devices, four counts of aggravated identity theft, and two counts of bank fraud, announced United States Attorney Zane David Memeger.
Mays faces a maximum sentence of 88 years in prison, including a two year mandatory term, a five year period of supervised release, a fine of up to $3.5 million, and an $800 special assessment.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Man Charged in Sex Trafficking ConspiracyRead the Press Release
Adrian Palmer, 43, of Philadelphia, PA, is charged by Indictment, unsealed today, with conspiring in the sex trafficking of girls under the age of 18. Palmer is charged with one count of conspiracy, one count of sex trafficking of minors, and one count of attempted sex trafficking of a minor announced United States Attorney Zane David Memeger. Palmer was arrested last night.
According to the indictment, between June 1, 2012 and June 14, 2012, Palmer, who worked as a security guard at a Days Inn motel on Roosevelt Boulevard in Philadelphia, provided protection and assistance to sex traffickers operating at the motel in exchange for a daily fee. Craig Johnson, indicted elsewhere, who was the operator of the sex trafficking venture, recruited young females to work as prostitutes. Johnson paid Palmer between $60 and $100 a day in exchange for advice about Johnson’s sex trafficking organization, including Johnson’s Backpage.com advertisements. Palmer also allegedly provided Johnson with clients for the sex trafficking business and provided protection for Johnson so that law enforcement authorities would not be alerted to the sex trafficking operation. It is further alleged that in August 2013, Palmer accepted $100 from a confidential witness in exchange for protecting him from law enforcement so he could engage in the sex trafficking of a (fictitious) 16-year-old minor.
If convicted of all charges, the defendant faces a mandatory minimum term of 10 years in prison with a maximum of 30 years, a fine of up to $750,000, up to a lifetime period of supervised release, and a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Palm Beach County Resident Convicted for Receipt, Distribution and Possession of Child PornographyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Hernandez Banks, 23, of Palm Beach, was convicted yesterday on all three counts of receipt, distribution and possession of child pornography, after a six day trial before U.S. District Judge Kenneth A. Marra.
This case stemmed from an undercover investigation into child pornography distributers who use LimeWire, a peer to peer software application. In August 2011, FBI-Houston conducted and undercover investigation that identified Banks transmitting child pornography from his West Palm Beach home using LimeWire. The FBI-West Palm Beach seized two computers from Banks’ home. The FBI analyzed the computers at their laboratory and discovered over 100 videos and images of child pornography.
Banks faces a mandatory minimum term of five years and up to a maximum term of twenty years in prison on the receipt and distribution counts. Banks faces a maximum term of ten years in prison on the possession count. Sentencing is scheduled for January 27, 2014 before U.S. District Judge Kenneth A. Marra in West Palm Beach, Florida.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Project Safe Childhood was launched in May 2006 by the Department of Justice and is 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.
Mr. Ferrer commended the investigative efforts of the FBI. The case was prosecuted by Assistant U.S. Attorney Lothrop Morris.
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.
Operators of Michigan Adult Day Care Centers Convicted in $3.2 Million Medicare Fraud SchemeRead the Press Release
A federal jury in Detroit today convicted the owner and the program coordinator of two Flint, Mich., adult day care centers for their participation in a $3.2 million Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan; Acting Special Agent in Charge John Robert Shoup of the FBI Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Detroit Office made the announcement.
Glenn English, 53, was found guilty in U.S. District Court for the Eastern District of Michigan of one count of conspiracy to commit health care fraud and seven counts of health care fraud for directing a psychotherapy fraud scheme through New Century Adult Day Program Services LLC and New Century Adult Day Treatment Inc. (collectively known as New Century).
Richard Hogan, 67, an unlicensed social worker who worked as a program coordinator at New Century, was found guilty of one count of conspiracy to commit health care fraud.
The defendants were charged in a superseding indictment returned Dec. 11, 2012. Another individual charged in the superseding indictment, Donald Berry, awaits trial at a later date.
According to evidence presented at trial, English owned and operated New Century as an adult day care center through which he billed Medicare for individual and group psychotherapy services. As shown at trial, New Century brought in mentally disabled residents of Flint-area adult foster care homes (AFCs), as well as people seeking narcotic drugs, and used their names to bill Medicare for psychotherapy that was not provided. The evidence showed that English and Hogan lured drug seekers to New Century with the promise that they could see a doctor there who would prescribe for them the narcotics they wanted if they signed up for the psychotherapy program. New Century used the signatures and Medicare information of these AFC residents and drug seekers to claim that it was providing them psychotherapy, when in fact it was not.
The evidence also showed that English directed New Century employees to fabricate patient records to give the false impression that psychotherapy was being provided. Social workers and untrained employees wrote fake progress notes for therapy sessions that never occurred. Further, English and New Century employees directed New Century clients to pre-sign sign-in sheets for months at a time, and used these signatures to claim to Medicare they had provided services. On multiple occasions, New Century billed Medicare as if its social workers had provided over 24 hours of care in a single day.From March 2010 through April 2012, New Century billed approximately $3.2 million and received more than $988,000 from Medicare.
The health care fraud conspiracy count carries a maximum potential penalty of 10 years in prison; each count of health care fraud carries a maximum penalty of 10 years in prison. Sentencing for both defendants is scheduled for Feb. 27, 2014.
The investigation was led by the FBI and HHS-OIG and was brought by the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Ohio Twp. Man Sentenced to Prison, Ordered to Pay $3.6 M for Defrauding Banks and Laundering MoneyRead the Press Release
PITTSBURGH - A Pittsburgh man has been sentenced in federal court to 54 months in prison and five years of supervised release on his conviction of bank fraud and money laundering, United States Attorney David J. Hickton announced today.
United States District Judge David Cercone imposed the sentence on Peter Cicero, 41. The sentence also included a restitution order of approximately $3.6 million.
According to information presented to the court, Cicero participated in several fraud schemes. Cicero defrauded Community Bank in connection with the $1.8 million loan made to fund Cicero's $3.3 million purchase of certain companies associated with closing real estate transactions. Cicero defrauded Community Bank by overstating the true sales price of the companies, falsely representing that sources outside of the closing companies would make substantial payment toward the purchase of the companies, when, in fact, Cicero took money from the very companies that he was purchasing to fund the purchase thereby defrauding Community Bank and his business partner.
In separate schemes, Cicero caused the submission of fraudulent loan applications and other documents to lenders to obtain loan collateralized by real estate. The false representations to secure loans included overstating income, understating liabilities, and failing to pay liabilities associated with the collateral servicing the loan. He also directed an individual to remove a lien from a title report. Several of the loans were in the names of his elderly in-laws, and were obtained by Cicero without the authorization of the in-laws. Cicero committed money laundering by causing a wire transfer of some of the proceeds of the mortgage fraud scheme to an account at Mars National Bank.
Cicero also committed bankruptcy fraud by concealing money and jewelry in connection with his bankruptcy filings, and access device fraud by using a credit card of his employer without authorization. Cicero’s fraud scheme funded an extravagant lifestyle that included fancy cars, including a Bentley and Ferrari, private school for his children, and an upscale home.
Prior to imposing sentence, Judge Cercone stated that Cicero’s crimes had a devastating impact on a number of individuals' lives.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Western Pennsylvania Mortgage Fraud Task Force for the investigation leading to the successful prosecution of Cicero.
Oakton Man Sentenced to 88 Months’ Imprisonment for Receipt of Child PornographyRead the Press Release
ALEXANDRIA, Va. – Michael Cronin, 50, of Oakton, Va., was sentenced today to 88 months in prison for receipt of child pornography.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Acting Special Agent in Charge Scot R. Rittenberg of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, made the announcement after U.S. District Judge T.S. Ellis, III sentenced the defendant.
Cronin pleaded guiltyon July 19, 2013. According to court documents, undercover agents discovered Cronin using a peer-to-peer file sharing program to share child pornography images and videos. A search warrant was executed and Cronin’s computers were found to contain over 2,000 child pornography files. A large portion of these files were images or videos of known children.
This case was investigated by Homeland Security Investigations with support from the Northern Virginia Internet Crimes Against Children Task Force. Special Assistant United States Attorney Alicia J. Yass, a Trial Attorney with the Child Exploitation and Obscenity Section of the Justice Department’s Criminal Division, is prosecuting the case on behalf of the United States.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.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Oakton Man Sentenced to 88 Months' Imprisonment for Receipt of Child PornographyRead the Press Release
ALEXANDRIA, Va. – Michael Cronin, 50, of Oakton, Va., was sentenced today to 88 months in prison for receipt of child pornography.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Acting Special Agent in Charge Scot R. Rittenberg of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, made the announcement after U.S. District Judge T.S. Ellis, III sentenced the defendant.
Cronin pleaded guiltyon July 19, 2013. According to court documents, undercover agents discovered Cronin using a peer-to-peer file sharing program to share child pornography images and videos. A search warrant was executed and Cronin’s computers were found to contain over 2,000 child pornography files. A large portion of these files were images or videos of known children.
This case was investigated by Homeland Security Investigations with support from the Northern Virginia Internet Crimes Against Children Task Force. Special Assistant United States Attorney Alicia J. Yass, a Trial Attorney with the Child Exploitation and Obscenity Section of the Justice Department’s Criminal Division, is prosecuting the case on behalf of the United States.
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.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Northampton County Man ArrestedRead the Press Release
Michael Beer, 36, of Roseto, PA, was arrested last night by agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with support from the Pennsylvania State Police, for possession of a destructive device. Beer will have an initial appearance today at 1:30 pm in federal court.
According to the criminal complaint, Beer’s relative called police after discovering what was believed to be a pipe bomb in the basement of a house on Shisler Street, in Philadelphia, where Beer had previously resided. The Philadelphia Police Department’s Bomb Disposal Unit, ATF and FBI all responded to the scene. A total of six devices were removed and the area was secured.
The potential penalty for possession of a destructive device is up to 10 years in prison. The government has 30 days to file an indictment.
The case is being investigated by ATF and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Marianne Cox.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Nine Individuals, Four Businesses Indicted for Conspiracy to Distribute Synthetic DrugsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that three Columbia, Mo., siblings are among nine individuals and four businesses indicted by a federal grand jury for their roles in a conspiracy to distribute synthetic marijuana, commonly referred to as K2.
Matthew Ashby Hawkins, 38, his brother, Patrick Ross Hawkins, 31, and his sister, Molly Jane Carmichael, 36, all of Columbia, Alexander Vladimir McMillin, 29, of Columbia, Kent Allen Holtz, 42, of Kaiser, Mo., Chadwick James Schlicht, 43, of Osage Beach, Mo., Charles Sterling Austin, Jr., 61, of St. Charles, Mo., Scott Wesley Hanson, 47, of Versailles, Mo., Thomas Lee McCormack, 28, of Jefferson City, Mo., and four businesses – Dynamic Scents, LLC, and Order Refill, LLC, Columbia business owned by Matthew and Patrick Hawkins, Carmichael and McMillin, Puff N Stuff, a retail business in Eldon, Mo., and Mozark Products, LLC, in Jefferson City – were charged in a six-count indictment returned under seal by a federal grand jury in Jefferson City on Oct. 2, 2013. The indictment was unsealed on Oct. 10, 2013, upon the arrests and initial court appearances of several defendants.
The federal indictment alleges that all of the defendants participated in a conspiracy to distribute a controlled substance analogue, also known as synthetic marijuana or K2, between Dec. 7, 2011, and Oct. 2, 2013. K2 is a mixture of plant material that has been sprayed or mixed with a synthetic chemical compound similar to THC (tetrahydrocannabinol), the psychoactive ingredient in marijuana. K2 products are often labeled as “incense,” but in reality are intended for human consumption as a drug.
The indictment also charges McMillin, Matthew Hawkins, Patrick Hawkins, Carmichael, Austin, Dynamic Scents, Order Refill, Puff N Snuff and Mozark Products with participating in a money-laundering conspiracy from Dec. 7, 2011, to Oct. 2, 2013. According to the indictment, they conspired to engage in financial transactions that involved the proceeds of the drug-trafficking conspiracy.
In addition to the two conspiracies, the indictment charges McMillin with one count of distributing a controlled substance analogue and one count of possessing a controlled substance analogue with the intent to distribute. Hanson and McCormack are also each charged with one count of possessing a controlled substance analogue with the intent to distribute.
The indictment also contains a forfeiture allegation, which would require the defendants to forfeit to the government any property derived from the proceeds of the alleged conspiracies, or used to facilitate the alleged conspiracies, including $423,327 seized from Puff N Suff’s bank account, $177,398 seized from Order Refill’s bank account, $14,215 seized from Mozark Products’ bank account, $82,149 seized from McMillin, $55,175 seized from Hanson and a 2004 Hummer H2 seized from Hanson.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Steven R. Berry. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Department of Homeland Security, the Columbia, Mo., Police Department, the MUSTANG Task Force, the LANEG Drug Task Force, the Cole County, Mo., Sheriff’s Department, the Morgan County, Mo., Sheriff’s Department, the Camden County, Mo., Sheriff’s Department and the Camdenton, Mo., Police Department.
Nebraska Man Sentenced to Fifteen Years in Federal Prison for Transporting Pcp and Codeine on Amtrak TrainRead the Press Release
ALBUQUERQUE – Rayvell Vann, 46, of Omaha, Neb., was sentenced this afternoon to 15 years months in prison followed by at least eight years of supervised release for his drug trafficking conviction, announced Acting U.S. Attorney Steve C. Yarbrough and Special Agent in Charge Joseph M. Arabit of the DEA’s El Paso Field Division.
Vann was arrested in Albuquerque, N.M., on April 9, 2012, on drug trafficking charges in a criminal complaint. Vann subsequently was indicted and charged with (1) possession of more than 100 grams of phencyclidine (PCP) with intent to distribute, and (2) possession of codeine with intent to distribute. On March 13, 2013, a jury found him guilty on both counts of the indictment.
According to the evidence at trial, on April 9, 2012, a DEA special agent, who was conducting an interdiction investigation at the AmTrak station in Albuquerque, approached Vann, who was a passenger on a train traveling from Los Angeles, Calif., to Omaha. After identifying himself as a law enforcement officer, the agent requested and received Vann’s consent to talk to him. During the recorded conversation, Vann said that he had traveled by plane to Los Angeles from Kansas City two weeks earlier and was returning from his travels.
Vann, who was traveling with one bag and a briefcase, let the agent search his bag which contained only a pink gift-wrapped box and a child’s dress despite Vann’s claim to have been in Los Angeles for two weeks. Vann initially claimed that the box contained a birthday gift for his aunt but could not provide his aunt’s birth date. Later, Vann admitted that the box contained illegal drugs, codeine cough syrup and Oxycotin, a prescription painkiller. The agent then arrested Vann and obtained a search warrant for the box.
When the box was opened, the agents quickly realized that it did not contain only codeine and painkillers because of the foam packaging inside the box and the pungent odor of ether that was released when they cut the foam. Recognizing the odor as PCP and finding 16 ounces of PCP in the box, the agents arranged for a bio-hazard expert to take possession of the PCP. When the agents interviewed Vann, he expressed surprise that the box contained PCP; he admitted purchasing PCP, codeine and Oxycotin while in Los Angeles, but claimed to have sent the PCP to Omaha by an expedited courier service.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into, or through, New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. The case was prosecuted by Assistant U.S. Attorneys David M. Walsh and Norman Cairns.
National Respiratory Services, LLC Ordered to Pay Restitution in the Amount of $2 Million for FDA Violations and Health Care FraudRead the Press Release
– Company received more than $2 million in payments from Medicare for misbranded, adulterated and contaminated inhalation medications
LOUISVILLE, Ky. – National Respiratory Services, LLC (NRS) was ordered to pay restitution in the amount of $2 million, by U.S. Senior District Judge Charles R. Simpson, III, for committing health care fraud, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the plea agreement, between June 2006 and June 2008, Christopher Keegan, while owner and majority shareholder of NRS, along with Johnny Perry, then vice-president of NRS, and others caused compounded medications to be sent to patients, through interstate commerce, which were adulterated and misbranded, in violation of the Food Drug & Cosmetic Act. NRS provided compounded medications to patients, but led both Medicare and the patients’ doctors to believe that the pharmaceutical company was providing non-compounded medications (FDA approved-commercially manufactured).
“The conduct of National Respiratory Services and the individual defendants involved in this scheme was a fraud not only against Medicare, but upon patients and their doctors,” United States Attorney Hale. “Misbranding the potency of medication puts patients at risk without their, or their doctors’, knowledge. Today’s proceeding ends a dangerous practice.”
The drugs provided by NRS were misbranded inhalation drugs in that they contained false and misleading labeling that misrepresented the strength and potency of their active ingredients or the type of drug actually provided. Further, NRS through Keegan, Perry and others, then submitted to Medicare false and fraudulent billings which indicated that the medications they were providing to patients were non-compounded and FDA-approved when they were not. The total loss of this activity is $2,030,343.11.
Compounded medications are not FDA approved, but FDA regulations permit pharmacists to make compounded drugs, including prescription drugs, in limited amounts and under narrow circumstances, for particular patients, and at the direction of a physician when other available drugs cannot be prescribed.
Johnny Perry pleaded guilty to four counts of a felony Indictment and received a sentence of three years probation with 8 months home incarceration. Perry was ordered to pay restitution of $2,030,343.11, to the Centers for Medicare and Medicaid Services, jointly and severally with other co-defendants.
Former NRS pharmacists Leo Parrino and Linda Schmidt pleaded guilty to introducing compounded inhalation drugs that bore false and misleading labelling and represented them to be of greater strength and potency than they actually were. Parrino pleaded guilty to the charge on September 8, 2011 and was sentenced by U.S. Magistrate Judge James D. Moyer to one year probation and restitution in the amount of $14,098.24. Schmidt was sentenced to one year probation and restitution in the amount of $20,000.00.
Co-defendant James Rives, a former minority shareholder of NRS, pleaded guilty to a federal misdemeanor Information and agreed to a restitution payment of $75,996.85. As a result of the plea agreement, the United States will not pursue felony charges of conspiracy to commit health care fraud against Rives for the activity he engaged in during the period of 2006 through 2008 while defendant Rives was associated with NRS.
Christopher Keegan pleaded guilty to a federal misdemeanor Information and agreed to a restitution payment of $2,030,343.11 to the Centers for Medicare and Medicaid Services, jointly and severally with other co-defendants.
The case was prosecuted by Assistant U.S. Attorney Lettricea Jefferson-Webb, and investigated by the Food and Drug Administration Office of Criminal Investigations, Health and Human Services Office of Inspector General, United States Postal Inspection Service, and the Federal Bureau of Investigation.