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2 December 2013
Cumberland County Child Sex Trafficker Sentenced to 540 MonthsRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today CHRISTOPHER JASON WILLIAMS, 33, of Fayetteville, North Carolina was sentenced by Chief United States District Judge James C. Dever, III, to 540 months imprisonment followed by a lifetime of supervised release. WILLIAMS previously pled guilty on July 15, 2013 to two counts of Sex Trafficking of Children, in violation of Title 18, United States Code Section 1591.
U.S. Attorney Thomas G. Walker stated, “Sex Trafficking, particularly of children, will not be tolerated in our community, and the U.S. Attorney’s Office will continue to work with our partners in law enforcement to ensure that individuals who commit these crimes are found and convicted.”
WILLIAMS’ crimes were first uncovered in January of this year when a young girl reported to police that she and another child had been held against their will by the defendant and forced to perform sex acts for money. At the time of the report, she had been able to escape but was fearful for her friend, who remained in WILLIAMS’ custody. Detectives with the Fayetteville Police Department responded to WILLIAMS’ apartment and eventually located the second victim locked in his attic crawl space.
Upon interviewing the girls, detectives learned that WILLIAMS had kept them captive for weeks and months, respectively, beating them and threatening to kill them and their family members if they attempted to escape. During this time, WILLIAMS posted partially nude photographs of the girls on various websites, advertising them for sex. Men were directed to WILLIAMS’ apartment, where the girls were forced to have sex with them for money. WILLIAMS forced both girls to have sex with him. He also made them perform sexual acts on him while recording it on video.
Once WILLIAMS was arrested, a forensic examination of his cell phone revealed hundreds of images of child pornography, many of which depicted the girls and were created by the defendant himself.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.Investigation of this case was conducted by the Fayetteville Police Department. Assistant United States Attorney Leslie Cooley prosecuted the case for the United States.
Conspirator Pleads Guilty in Fraudulent Tax Refund SchemeRead the Press Release
Loss to the Government of $546,785 as a Result of the Scheme
Baltimore, Maryland – Tonia Patrice Lawson, age 43, of Middle River, Maryland, pleaded guilty today to a conspiracy to obtain fraudulent tax refunds.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein, Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Kathryn Jones, U.S. Department of Transportation, Office of Inspector General, Washington Regional Office.
“Return preparer fraud is a priority for IRS Criminal Investigation and we are committed to working with our law enforcement partners to investigate and prosecute cases just like these,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Today's plea hearing is a reminder that individuals, like Ms. Lawson, who conspire to prepare fraudulent tax returns, will be brought to justice.”
According to Lawson’s plea agreement, from February 2010 through April 2013, Lawson, who was unemployed, conspired with others to prepare fraudulent tax returns. Specifically, Lawson and others recruited individuals who ordinarily did not meet the threshold to file income tax returns, because they had little or no earned income, and convinced these individuals that they could obtain a substantial refund and therefore should file a federal individual income tax return. Lawson and her co-conspirators used a variety of methods to recruit these individuals, including paying referral fee to those who brought recruits to them. Lawson would collect the recruits’ personal information and provide it to the conspirator who would prepare the fraudulent return. The recruits did not provide any income information. Once the refund from the fraudulent tax return was received, Lawson and the conspirators took a portion of the refund and paid the recruit a smaller amount. The conspirators misled the recruits by telling them that the refunds they had received were smaller than the refund amounts listed on the fraudulent tax returns. At least 15 fraudulently obtained tax refunds were deposited directly into accounts controlled by Lawson, who then wrote checks to the recruits to pay them for their portion of the refund.
Over the course of the scheme, Lawson conspired in the filing of 84 fraudulent tax returns with a resulting loss to the government of $546,785.
Lawson faces a maximum sentence of 10 years in prison and a fine of $250,000 or twice the gross gain or loss caused by the offense, whichever is greater. U.S. District Judge Richard D. Bennett scheduled her sentencing for March 27, 2014 at 4:00 p.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised IRS Criminal Investigation and DOT-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory R. Bockin, who is prosecuting the case.
Clinic Manager Pleads Guilty to Receiving Misbranded BotoxRead the Press Release
St. Louis, MO - THOMAS GREG MARTIN pled guilty to receiving misbranded Botox® from a foreign unlicensed drug wholesaler, some of which had counterfeit exterior packaging.
According to court documents, Martin operated Aestheticare LLC, a medical clinic which provided assorted cosmetic procedures to patients in St. Louis County, Missouri. In March 2010, Martin received a facsimile transmission from an unlicensed drug wholesaler that offered low prices for assorted prescription drugs, including "Botox (Turkish)" for $344.99 a vial. During this same time frame, the FDA-approved version of Botox® was sold through licensed drug wholesales at higher prices in the United States, typically $525 a vial. From March 2010 through September 2012, Martin made over thirty separate purchases of these drugs from the unlicensed drug wholesaler. Ultimately, Martin and others provided the illegal drugs to the clinic’s patients without informing them of the source of the drugs. The U.S. Food and Drug Administration has recently issued a public safety alert regarding misbranded Botox®, found on the agency’s website at: http://www.fda.gov/drugs/drugsafety/ucm349503.htm.
Martin, St. Louis, Missouri, pled guilty to one felony charge of receiving misbranded drugs before United States District Judge Rodney Sippel. Sentencing has been set for March 7, 2014.
Martin faces a maximum penalty of three years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the U.S. Food and Drug Administration, Office of Criminal Investigations.
CVS’ Caremark Will Pay $4.25 Million<br /> for Allegedly Denying Medicaid Claims for Reimbursement of Prescription Drug CostsRead the Press Release
Caremark LLC, a pharmacy benefit management company (PBM), will pay the government and five states a total of $4.25 million to settle allegations that it knowingly failed to reimburse Medicaid for prescription drug costs paid on behalf of Medicaid beneficiaries, who also were eligible for drug benefits under Caremark-administered private health plans, the Justice Department announced today. Caremark is operated by CVS Caremark Corp., one of the largest PBMs and retail pharmacies in the country. A PBM administers and manages the drug benefits for clients who offer drug benefits under a health insurance plan.
Under the terms of the agreement, the government will receive approximately $2.31 million. In addition, five states -- Arkansas, California, Delaware, Louisiana and Massachusetts -- will share $1.94 million.
“It is vitally important that cash-strapped Medicaid programs receive reimbursement for costs they incur that should have been paid for by other insurers,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “We will take action against those who seek to gain at the expense of Medicaid or other federal health care programs.”
Caremark served as the PBM for private health plans that insured a number of individuals receiving prescription drug benefits under both a Caremark-administered plan and Medicaid. When an individual is covered by both Medicaid and a private health plan, the individual is called a “dual eligible.” Under the law, the private insurer, rather than the government, must assume the costs of health care for dual eligibles. If Medicaid erroneously pays for the prescription claim of a dual eligible, Medicaid is entitled to seek reimbursement from the private insurer or its PBM, in this case Caremark.
According to the government, Caremark allegedly used a computer claims processing platform called “Quantum Leap” to cancel claims for reimbursement submitted by Medicaid for dual eligibles. The government alleged that Caremark’s actions caused Medicaid to incur prescription drug costs for dual eligibles that should have been paid for by the Caremark-administered private health plans rather than Medicaid.
The allegations settled today arose from a lawsuit filed by Janaki Ramadoss, a former Caremark quality assurance representative, under the qui tam, or whistleblower, provisions of the False Claims Act. Under the Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The Act also allows the government to intervene in the lawsuit, as it has done in this case. Ramadoss will receive approximately $505,680 from the federal government’s share of the settlement. Ramadoss also will receive additional amounts from the settling states.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $17 billion through False Claims Act cases, with more than $12.1 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was jointly litigated by the U.S. Attorney’s Office for the Western District of
Texas; the Justice Department’s Civil Division, Commercial Litigation Branch; and the attorneys general for the states of Arkansas, California and Louisiana.The case is captioned United States ex rel. Ramadoss v. CVS Caremark Inc., SA-12-CA-929WRF (W.D. Texas). The claims settled by this agreement are allegations only; there has been no determination of liability.
Boise Woman Pleads Guilty to Conspiring to Distribute MethRead the Press Release
BOISE – Bobbi Eileen Woolsey, 35, of Boise, pleaded guilty today in United States District Court to conspiring to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced.
A federal grand jury indicted Woolsey and ten other defendants on July 9, 2013. The superseding indictment alleges that Woolsey and ten other co-conspirators agreed to distribute methamphetamine. It also alleges that several co-conspirators distributed methamphetamine, unlawfully possessed firearms, and brandished and discharged a firearm in furtherance of the drug conspiracy.
Woolsey is scheduled to be sentenced on February 25, 2013, by U.S. District Judge Edward J. Lodge at the federal courthouse in Boise. Three other defendants have pleaded guilty and are set for sentencing on February 24, 2013.
The charge of conspiracy to distribute methamphetamine is punishable by up to life imprisonment, a maximum fine of $10 million, and a minimum term of five years of supervised release.
The case was investigated by the Drug Enforcement Administration, the Nampa Police Department, and the Treasure Valley Metro Violent Crime Task Force. The task force is comprised of federal, state and local agencies, including the Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, Canyon County Sheriff’s Office, and the Idaho Department of Probation and Parole.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Asheboro Resident Pleads to Federal Program FraudRead the Press Release
GREENSBORO, N.C. –TIFFANIE ANNETTE WILSON of Asheboro, North Carolina, pleaded guilty today to a felony fraud charge in federal court in Greensboro, announced Ripley Rand, United States Attorney for the Middle District of North Carolina.
WILSON, age 38, pleaded guilty to felony charges of both conspiracy to embezzle money and embezzling money from an organization receiving federal funds. Wilson was the Director of the Weatherization Assistance Program for Regional Consolidated Services [RCS]. RCS is an Asheboro nonprofit organization that during WILSON’s leadership administered a federally-funded program to help low-income North Carolinians save energy and reduce utility costs through making homes more energy efficient.
WILSON pleaded guilty to conspiring to embezzle and embezzling funds from RCS. According to court documents, WILSON’s embezzlement resulted in a loss of between $300,000.00 and $400,000.00 to the federal program.
WILSON faces a maximum penalty of ten years confinement in federal prison for the fraud convictions. The plea agreement also requires WILSON to make restitution. Sentencing will occur in Greensboro on March 11, 2014, before Chief United States District Judge William L. Osteen, Jr.
The case was investigated by the Federal Bureau of Investigation, the Department of Energy/Office of Inspector General, and the North Carolina State Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Robert M. Hamilton.
Albuquerque Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Deluvino Elias Salazar, 30, of Albuquerque, N.M., pleaded guilty this morning to an indictment charging him with possession of methamphetamine with intent to distribute under a plea agreement that requires the imposition of a 135-month prison sentence.
Salazar was arrested on Oct. 7, 2012, as the result of a law enforcement operation by agents of Homeland Security Investigations (HSI) and officers of the Albuquerque Police Department’s Westside Narcotics Unit. During the operation, officers observed Salazar place a plastic bag into a vehicle and get into the front passenger seat. Shortly thereafter, the officers executed a traffic stop on the vehicle and seized the plastic bag, which held three plastic containers filled with methamphetamine.
In his plea agreement, Salazar admitted that on Oct. 7, 2012, he met with an individual who, unbeknownst to him, was a confidential informant with the intention of distributing methamphetamine to him. Salazar further admitted bringing a plastic bag holding three plastic containers which contained methamphetamine to the meeting. Salazar also acknowledged that a forensic chemist determined that the plastic containers held an aggregate of 1330.89 grams of methamphetamine, including 998.16 grams of pure methamphetamine.
This case was investigated by the Albuquerque office of HSI and the Albuquerque Police Department, and is being prosecuted by Assistant U.S. Attorneys Holland S. Kastrin and Novaline D. Wilson.Alabama Man Sentenced to Federal Prison for Stolen Identity Tax Refund Fraud SchemeRead the Press Release
Clarence Hicks, of Montgomery, Ala., was sentenced to serve 57 months in federal prison and three years of supervised release and ordered to pay $210,555.62 in restitution for his role in a stolen identity refund fraud scheme, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. Hicks had previously pleaded guilty to filing a false claim for a federal tax refund and to aggravated identity theft.
According to court documents, Hicks had access to an Internal Revenue Service (IRS) Electronic Filing Identification Number assigned to another person and used that number to file false federal income tax returns in the names of stolen identities. The court found that Hicks intended to steal more than $300,000 from the IRS, which paid out $210,555.62 in false claims based on fraudulent returns Hicks filed.
This case was investigated by special agents of the Internal Revenue Service - Criminal Investigation. Trial Attorneys Justin Gelfand and Jason Poole of the department's Tax Division prosecuted the case.
Additional information about the department's Tax Division and its enforcement efforts may be found at www.justice.gov/tax
2 Houston Men Convicted of Humble Bank RobberyRead the Press Release
HOUSTON – Justin Devon Hayes, 23, and Demontray Ward, 21, both of Houston, have entered guilty pleas to aggravated bank robbery and brandishing a firearm during a crime of violence, announced United States Attorney Kenneth Magidson.
On April 26, 2013, Hayes, Ward and a third, now deceased man, robbed the Regions Bank at 7044 East FM 1960 in Humble. Ward was armed with a shotgun, while the other two had pistols. All of the weapons were loaded. The defendants demanded money, threatened the tellers and became agitated when they realized the vault was on a 10-minute timer.
A Houston police officer entered the bank, but was disarmed by Ward. Outside, another officer witnessed the three men leave the bank and enter an SUV. He attempted to confront them, but the vehicle drove towards him. Seeing a muzzle of a shotgun pointed at him, the officer fired and the driver was shot and killed. Ward and Hayes were then taken into custody.
U.S. District Judge Vanessa Gilmore, who accepted the guilty pleas, has set sentencing for Spring 2014, at which time they face up to 25 years for the bank robbery as well as a consecutive seven years for the firearms charge.
Both men will remain in custody pending their respective hearings.
The investigation was conducted by the FBI Bank Robbery Task Force, which is comprised of personnel from the FBI, Houston Police Department and Harris County Sheriff's Office. Assistant United States Attorney Jennie Basile is prosecuting the case.
29 November 2013
Wanblee Man Indicted for Conspiracy to Distribute Marijuana and MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute Controlled Substances.
Dana Provincial, age 35, was indicted on November 19, 2013. He appeared before U.S. Magistrate Judge Veronica L. Duffy on November 25, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.
No later than 2009, Provincial conspired with others to distribute marijuana and methamphetamine in the District of South Dakota.
The charge is merely an accusation and Provincial is presumed innocent until and unless proven guilty.
The investigation is being conducted by Northern Plains Safe Trails Drug Enforcement Task Force, the Federal Bureau of Investigation, the South Dakota Division of Criminal Investigation, and the Bureau of Indian Affairs Office of Justice Services. Assistant U.S. Attorney Ted L. McBride is prosecuting the case.
Provincial was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for January 28, 2014.
Spearfish Man Sentenced for Mail Fraud and Misbranding of A DrugRead the Press Release
United States Attorney Brendan V. Johnson announced that a Spearfish, South Dakota, man convicted of Mail Fraud and Misbranding of a Drug was sentenced on November 25, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
John Martin, age 74, was sentenced to 9 years in custody, 3 years of supervised release, a $125 special assessment to the Federal Crime Victims Fund, and restitution of at least $209,300. The court deferred a final determination on restitution until a later date.
Martin was indicted for Mail Fraud and Misbranding of a Drug by a federal grand jury on March 20, 2012. He pled guilty on May 9, 2013.
Between February 27, 2007, and December 31, 2011, Martin, who is not a physician, fraudulently claimed he could treat and cure cancer and other diseases. Martin instructed individuals who contacted him to send samples of bodily fluids and hair, along with money, to him in Spearfish. In one instance, he instructed a person to send money and samples of blood, saliva, and hair so that he could test the samples for cancer. Martin then informed the individual of the presence of colon cancer, and that the individual needed to travel to Spearfish for treatment. Martin charged the individual for treatment, prescribed herbal supplements, and later informed the individual that the cancer was cured.
Additionally, in April 2011, Martin directed a person to take herbal supplement pills, which Martin provided, as a treatment for cancer. Martin fraudulently informed that person that he had liver cancer and prescribed 96 herbal supplements to treat the cancer, which caused the supplements to become “drugs” under federal law. The supplements lacked labeling bearing adequate directions for use in the treatment of cancer.
The investigation was conducted by the U.S. Postal Inspection Service, the U.S. Food and Drug Administration-Office of Criminal Investigations, the South Dakota Division of Criminal Investigation, the Spearfish Police Department, the Belle Fourche Police Department, and the Butte County Sheriff's Office. The case was prosecuted by Assistant U.S. Attorney Eric Kelderman.
Martin was immediately turned over to the custody of the U.S. Marshals Service.
Sentences for November 22 – 27, 2013Read the Press Release
Jose Lucio Orozco-Ortiz, 45, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on November 27, 2013, for illegal re-entry of a previously deported alien into the United States. Orozco-Ortiz 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.
Travis Wagner, 33, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 26, 2013, for being a felon in possession of a firearm. Wagner received 69 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 Bureau of Alcohol, Tobacco, Firearms and Explosives.
Timothy J. Loghry, 39, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on November 26, 2013, for conspiracy to possess with intent to distribute, and to distributing at least 500 grams or more of methamphetamine. Loghry was arrested in Cheyenne, Wyoming. He received 136 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Fernando Ortiz-Fierro, 39, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on November 26, 2013, for illegal re-entry of a previously deported alien into the United States. Ortiz-Fierro 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.
Ezequiel Yaheudt Rodriguez-Guzman, 19, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 26, 2013, for illegal re-entry of a previously deported alien into the United States. Rodriguez-Guzman was arrested in Basin, 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.
Kevin R. Kaufman¸48, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on November 25, 2013, for conspiracy to possess with intent to distribute, and to distributing between 200 and 350 grams of methamphetamine. Kaufman was arrested in Cheyenne, Wyoming. He received 60 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.
Vincent Earl Hagey, 44, of Las Vegas, Nevada, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on November 25, 2013, for assault by striking. Hagey was arrested in Yellowstone National Park. He received time served, one year of supervised release, and was ordered to pay restitution in the amount of $6,765.90. This case was investigated by the National Park Service.
Travis K. Smith, 44, of Provo, Utah, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on November 25, 2013, for conspiracy to possess with intent to distribute, and to distributing 397 grams of methamphetamine. Smith was arrested in Gillette, Wyoming. He received 33 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Lela M. Carpenter, 38, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on November 25, 2013, for conspiracy to possess with intent to distribute, and to distributing between 500 grams and 1.5 kilograms of methamphetamine. Carpenter was arrested in Cheyenne, Wyoming. She 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 $400.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Kenneth C. Garcia, 57, of Florissant, Colorado, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on November 25, 2013, for conspiracy to possess with intent to distribute, and to distributing 425 grams of methamphetamine. Garcia was arrested in Denver, Colorado. He received 30 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.
Mike Grant Harmon, 42, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on November 22, 2013, for conspiracy to possess with intent to distribute, and to distributing between 500 grams and 1.5 kilograms of methamphetamine. Harmon was arrested in Casper, Wyoming. He received 151 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Porcupine Man Pleads Not Guilty to Second Degree MurderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Porcupine, South Dakota, man has been indicted by a federal grand jury for Second Degree Murder.
Lawrence Red Shirt, age 27, was indicted on November 19, 2013. Red Shirt appeared before U.S. Magistrate Judge Veronica L. Duffy on November 26, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Red Shirt killing another man by stabbing him multiple times on November 8, 2013, at Rocky Ford.
The charge is merely an accusation and Red Shirt is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Red Shirt was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for February 4, 2014.
Methamphetamine Conspiracy Case Ends with Two Pleading Guilty and Two Convicted at TrialRead the Press Release
United States Attorney Brendan V. Johnson announced that two Sioux Falls, South Dakota, men were found guilty of drug charges as a result of a federal jury trial in Sioux Falls, and their two co-defendants were sentenced after pleading guilty.
Austin Jon Dalsted, age 20, was found guilty of conspiracy to distribute 500 grams or more of methamphetamine. The charge carries a mandatory minimum sentence of 10 years in prison and a maximum of life in prison and/or a $10 million fine, a minimum of 5 years and maximum of life on supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Jeffrey Harley Strom, age 29, was convicted of the lesser included offense of distribution of methamphetamine. That charge carries a penalty of up to 20 years in prison and/or a $1 million fine, a minimum of 3 years and a maximum of life on supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Regina Renee Johnson, of Sioux Falls, and Robert Raymond Jackson, of Brandon, South Dakota, both age 43, pled guilty to their part in the conspiracy on September 12 and 13, 2013, respectively.
Both Johnson and Jackson were sentenced by U.S. District Court Judge Lawrence L. Piersol on November 25, 2013, to 210 months in custody followed by 5 years of supervised release. A sentencing date for Dalsted and Strom has not yet been set.
The four defendants were indicted by a federal grand jury on May 8, 2013 for Conspiracy to Distribute a Controlled Substance. Johnson and Jackson pled guilty in September 2013. The trial for Dalsted and Strom commenced on November 19 and concluded on November 21, 2013.
On March 27, 2013, Sioux Falls Police were called to a local motel when Regina Johnson tried to return to the room in which she had already checked out. The motel manager asked the police to check Johnson’s room. When the police checked the room, they found $87,300 cash hidden under the bed. Police located and arrested Johnson. At the time of her arrest she was with Robert Jackson in an SUV, which contained over seven pounds of methamphetamine. While the police were searching the SUV, they noticed Jeff Strom watching them and making calls on his cell phone. When questioned by the police, Strom admitted that Johnson had called him to serve as a lookout at the motel where the cash was found. The police next searched the home where Johnson, Jackson and Johnson’s son, Austin Dalsted, were living. The search found more cash and methamphetamine.
This case was investigated by the Sioux Falls Police Department, the South Dakota Division of Criminal Investigation, and the U.S. Drug Enforcement Administration. Assistant U.S. Attorney John E. Haak prosecuted the case.
All defendants are in the custody of the U.S. Marshals Service.Marin County Man Sentenced to 142 Months in Prison for Trafficking MethamphetamineRead the Press Release
SAN FRANCISCO – Jesse James Starr, was sentenced on November 25, 2013, to nearly 12 years in prison for trafficking methamphetamine, United States Attorney Melinda Haag announced.
Starr, 40, of San Rafael, pleaded guilty on August 30, 2013, to a violation of 21 U.S.C. § 841(a)(1). According to the plea agreement, Starr admitted that he possessed three ounces of methamphetamine in March of 2013, and almost four ounces of methamphetamine in August of 2012. Starr also admitted that, in March of 2013, he fled from police and crashed his car during the pursuit. Starr’s criminal history, as well as his history of leading police in high speed pursuits, contributed to the length of his sentence.
“This case shows the importance my office places on the community’s safety,” United States Attorney Melinda Haag said. “It also shows the importance of the partnership between federal and state law enforcement. The Marin County Major Crimes Task Force identified Starr as a dangerous, repeat offender, and my office worked with the Task Force to prosecute this case.”
Marin County District Attorney Edward S. Berberian, Jr., similarly called Starr’s prosecution “an excellent example of state and federal authorities working together to remove a dangerous narcotics distributor from the streets,” and thanked the U.S. Attorney’s Office for its efforts in prosecuting the case.
The sentence was handed down by the Honorable Charles R. Breyer, United States District Court Judge. Judge Breyer also sentenced Starr to 5 years of supervised release. Starr was in custody at the time of sentencing and will begin serving his sentence immediately.
The prosecution is the result of a joint investigation by the Marin County Major Crimes Task Force, led by Marin County Deputy Sheriff Mike Dobbins, and the federal Drug Enforcement Administration, led by Special Agent Geoff Kolanowski.
(Starr indictment )
Fort Thompson Woman Charged with LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, woman has been indicted by a federal grand jury for Larceny.
Ruby Sazue, age 20, was indicted on November 14, 2013. She appeared before U.S. Magistrate Judge Mark A. Moreno on November 26, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Sazue is alleged to have stolen a motor vehicle in Fort Thompson in October 2013. The charge is merely an accusation and Sazue is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan Dilges is prosecuting the case.
Sazue was remanded to the custody of the U.S. Marshals Service pending trial. Trial has been set for January 21, 2014.
Former KKK Leader Indicted for Cross Burning in Alabama; Second KKK Member Indicted for PerjuryRead the Press Release
Steven Joshua Dinkle, former Exalted Cyclops of a chapter of the Ku Klux Klan (KKK) in Ozark, Ala., was arrested on Wednesday, Nov. 27, in Mississippi for burning a cross at the entrance to a predominantly African-American neighborhood and for obstructing the investigation into the offense. Pamela Morris, Dinkle’s mother and the former secretary of the KKK chapter, was arrested on Nov. 21, 2013, for committing perjury before the grand jury investigating the cross burning.
Dinkle, 28, was charged in a five-count indictment returned by a federal grand jury in the Middle District of Alabama that was unsealed on Nov. 27. The indictment charges him with one count of conspiracy to violate housing rights, one count of criminal interference with the right to fair housing, one count of using fire to commit a federal felony and two counts of obstruction of justice.
The indictment alleges that on May 8, 2009, Dinkle conspired with another person to burn a cross in an African-American neighborhood to threaten and intimidate residents of that neighborhood and thereby interfere with their federally protected housing rights. Dinkle allegedly constructed a six-foot cross, wrapping jeans and a towel around it. He and his co-conspirator drove the cross to an African-American community near Johntown Road in Ozark where Dinkle poured fuel on the cross, erected it in the ground and set it on fire. The indictment further contends that Dinkle obstructed justice by lying to local investigators in 2009, and federal investigators in 2012. Dinkle claimed he had withdrawn from the KKK months before the cross burning, provided a false alibi and denied knowing a person who was, in fact, his superior in the KKK.
The grand jury returned a separate indictment against Morris, 45, charging her with two counts of perjury. The indictment alleges that Morris made multiple false statements to the grand jury investigating the cross burning when she denied her own involvement in the KKK and knowing that Dinkle was also involved.
If convicted, Dinkle could face a maximum statutory sentence of 10 years in prison and a $250,000 fine on the conspiracy and criminal-interference counts; sentence maximum of 10 years in prison for the use-of-fire; a maximum of 20 years in prison and a $250,000 fine for obstructing justice by making false statements to local investigators; and a maximum of five years in prison and a $250,000 fine for making false statements to the FBI.
If convicted, Morris could face a maximum statutory sentence of five years in prison and a $250,000 fine on each count of perjury.
This case is being investigated by the FBI, with the assistance of the Dale County Sheriff’s Office and the Ozark Police Department. The case is being prosecuted by Assistant U.S. Attorney Jerusha T. Adams of the Middle District of Alabama and Trial Attorney Chiraag Bains of the Justice Department’s Civil Rights Division.
An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty.
Eagle Butte Man Sentenced for Third Degree Burglary and Aiding and AbettingRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Third Degree Burglary and Aiding and Abetting was sentenced on November 26, 2013, by U.S. District Judge Roberto A. Lange.
Brian One Feather, age 31, was sentenced to 18 months of custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution will remain open for 30 days.
One Feather was indicted by a federal grand jury for Third Degree Burglary, Aiding and Abetting, and Larceny on July 17, 2013. He pled guilty to Third Degree Burglary and Aiding and Abetting on September 12, 2013.
One Feather’s conviction is the result of a June 2012 break-in at the Howard V. Johnson Cultural Heritage Center for the Cheyenne River Sioux Tribe in Eagle Butte. After One Feather broke in, he took approximately $37,420 worth of cultural and craft items belonging to the Cultural Heritage Center.
This case was investigated by the Cheyenne River Sioux Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
One Feather was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Sentenced for Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on November 25, 2013 by U.S. District Judge Roberto A. Lange.
Aadam Tiger, age 29, was sentenced to 55 days of custody, 2 years of Supervised Release, a $1,000 fine and $100 to the Federal Crime Victims Fund.
Tiger was indicted for the above charge by a federal grand jury on November 15, 2012. He pled guilty on August 13, 2013.
On December 2, 2011, Cheyenne River Law Enforcement stopped the Defendant’s vehicle for a traffic violation. The officer could smell marijuana coming from inside the vehicle. The officer was given consent to search the vehicle and found marijuana, plastic baggies, a grinder, scale, zig-zag papers, roaches, and $725. Tiger had the intent to distribute some or all of the marijuana that was in his possession.
The investigation was conducted by the Cheyenne River Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Colorado Man Indicted for Conspiracy to Distribute Marijuana and Distribution of MarijuanaRead the Press Release
United States Attorney Brendan V. Johnson announced that Colorado man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Distribution of a Controlled Substance.
Dustin Reller, age 27, was indicted on November 19, 2013. He appeared before U.S. Magistrate Judge Veronica Duffy on November 22, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $500,000 fine, 4 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Beginning no later than August 2013, Reller conspired with others to distribute marijuana in the District of South Dakota and distributed more the 5 grams of marijuana to a person under 21 years of age.
The charge is merely an accusation and Reller is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Unified Narcotic Enforcement Team and the Drug Enforcement Administration. Assistant U.S. Attorney Ted L. McBride is prosecuting the case.
Reller was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for January 28, 2014.
28 November 2013
Spearfish Man Sentenced for Mail Fraud and Misbranding of A DrugRead the Press Release
United States Attorney Brendan V. Johnson announced that a Spearfish, South Dakota, man convicted of Mail Fraud and Misbranding of a Drug was sentenced on November 25, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
John Martin, age 74, was sentenced to 9 years in custody, 3 years of supervised release, a $125 special assessment to the Federal Crime Victims Fund, and restitution of at least $209,300. The court deferred a final determination on restitution until a later date.
Martin was indicted for Mail Fraud and Misbranding of a Drug by a federal grand jury on March 20, 2012. He pled guilty on May 9, 2013.
Between February 27, 2007, and December 31, 2011, Martin, who is not a physician, fraudulently claimed he could treat and cure cancer and other diseases. Martin instructed individuals who contacted him to send samples of bodily fluids and hair, along with money, to him in Spearfish. In one instance, he instructed a person to send money and samples of blood, saliva, and hair so that he could test the samples for cancer. Martin then informed the individual of the presence of colon cancer, and that the individual needed to travel to Spearfish for treatment. Martin charged the individual for treatment, prescribed herbal supplements, and later informed the individual that the cancer was cured.
Additionally, in April 2011, Martin directed a person to take herbal supplement pills, which Martin provided, as a treatment for cancer. Martin fraudulently informed that person that he had liver cancer and prescribed 96 herbal supplements to treat the cancer, which caused the supplements to become “drugs” under federal law. The supplements lacked labeling bearing adequate directions for use in the treatment of cancer.
The investigation was conducted by the U.S. Postal Inspection Service, the U.S. Food and Drug Administration-Office of Criminal Investigations, the South Dakota Division of Criminal Investigation, the Spearfish Police Department, the Belle Fourche Police Department, and the Butte County Sheriff's Office. The case was prosecuted by Assistant U.S. Attorney Eric Kelderman.
Martin was immediately turned over to the custody of the U.S. Marshals Service.
Cheektowaga woman pleads guilty to money laudering conspiracyRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Nannette Brown, 44, of Cheektowaga, N.Y., pleaded guilty before Chief U.S. District Judge William M. Skretny to conspiracy to commit money laundering. The charge carries a maximum penalty of 20 years in prison, a $500,000 fine or both.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that the defendant conspired with her son, Tyshawn Bradley, to use the proceeds of Tyshawn Bradley’s cocaine distribution network to purchase real estate located in Buffalo. Brown admitted that her son asked her to purchase the following properties in her name in order to conceal Tyshawn Bradley as being the true owner of the properties: 8 Norway Park; 16 Corwall Avenue; 514 Dodge Street; and 33 Gerhardt Street.
Brown, Tyshawn Bradley and 10 others were arrested in April 2013 and charged with conspiracy to traffic 280 grams or more of cocaine base and 500 grams or more of cocaine within the Perry Housing Projects.
This case resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation conducted by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent in Charge Brian P. Boetig, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Resident Agent in Charge Frank Christiano. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for this nation's illegal drug supply.
Sentencing is set for April 2, 2013 at 9:00 a.m. before Judge Skretny.
27 November 2013
Wisconsin Man Charged with Commercial Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Milwaukee, Wisconsin, man has been charged in federal court for Transportation for Prostitution, Coercion, and Commercial Sex Trafficking.
Thomas Alexander Roberts, age 33, appeared before U.S. Magistrate Judge John E. Simko on November 26, 2013, and pled not guilty to the charges.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
In November 2013, Roberts allegedly transported an adult female from Wisconsin to South Dakota with the intent to have her engage in prostitution and sexual activity.
The charge is merely an accusation and Roberts is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Sioux Falls Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Roberts was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.White River Man Sentenced for Failing to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a White River, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on November 26, 2013, by Roberto A. Lange.
Nathan First In Trouble, age 34, was sentenced to 12 months and 1 day of custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
First In Trouble was indicted by a federal grand jury on July 17, 2013. He pled guilty on September 16, 2013.
First In Trouble was convicted of Sexual Abuse of a Minor in federal court in April 1998. At that time, he was sentenced to 30 months in prison and ordered to register as a sex offender. From February to April 2013, First In Trouble registered as a sex offender at his father’s residence in Mellette County. However, he was not staying there. First In Trouble was working and staying in Pierre from January to April 2013, when he was arrested. During that time, he failed to register as a sex offender by updating his residence and employment information.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Tim Maher prosecuted the case.
First In Trouble was immediately turned over to the custody of the U.S. Marshals Service.
Week in Review – South BendRead the Press Release
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Darius Witherspoon, 20, of South Bend, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offenses of the armed bank robbery of Key Bank and G.W Jones Bank and carrying and brandishing a firearm during a crime of violence.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 2/27/14.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 Donald Schmid.
Quintien Sinclair Walker, 22, of South Bend, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of making false statements during the acquisition of a firearm.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 3/5/14.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 Donald Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Week in Review – HammondRead the Press Release
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Duane Spears, Jr., 24, of Gary, Indiana, pled guilty before Chief Judge Philip Simon to the felony offense of making false statements to a licensed firearms dealer in the purchase of firearms.Sentencing has been set for 2/27/14.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force.This case is being prosecuted by Assistant United States Attorney Dean Lanter.
Sonyinee Davis Pope, 39, of Hammond, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of making false statements to the United States Postal Service.Sentencing has been set for 2/6/14.This charge was filed as a result of an investigation by United States Postal Service-Office of the Inspector General.This case is being prosecuted by Assistant United States Attorney Toi Houston.
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:
Diamond Toney, 19, of Merrillville, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 84 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of use of a firearm during a crime of violence.According to documents filed in this case, Toney established an online relationship with her victim through a dating website. Toney and the victim arranged to meet in Merrillville. Toney and Dedrick Bufkin, armed with a gun, met the victim at the 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 a 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 and the Merrillville Police Department.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Eliezer Campuzano-Flores, 30, of East Chicago, Indiana, was sentenced by Magistrate Judge Paul Cherry to time served (47 days) after pleading guilty to the misdemeanor offense of knowingly eluding examination by immigration officials.This case was the result of an investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Efren Paniagua-Pizano, 25, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offense of conspiracy to distribute and possess with intent to distribute cocaine.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 Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Jose Noe Perea Casteneda, 40, of Goshen, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offense of conspiracy to distribute and possess with the intent to distribute cocaine.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 Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Lesley Miller Lowery.
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.
DISPOSITION:
Gerardo Martinez-Gaston, 42, of Fort Wayne, Indiana, was sentenced by District Judge Theresa Springmann to 6 months imprisonment (time served) and 1 year of supervised release after pleading guilty to the felony offense of conspiracy to possess with the intent to distribute cocaine.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Washington Park Former Street Superintendent Pleads Guilty to Forging Village CheckRead the Press Release
Douglas T. Knowles, 37, of Washington Park, Il., entered a plea of guilty to a one-count Indictment that charged possessing and uttering a forged check of the Village of Washington Park, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Sentencing is scheduled for March 21, 2014.
In December 2012 Knowles, who is a public works/street superintendent for the Village of Washington Park, purchased and picked up a gas range from Gil Klein TV & Appliance, Inc., a/k/a Klein’s Brand Source, in Fairview Heights. Knowles presented a Village of Washington Park check purported to be signed by the Mayor of Washington Park for payment. It was later learned that Knowles forged the endorsement of the Mayor and used the gas range for his private residence.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
U.S. Fish and Wildlife Service, U.S. Attorney’s Office and Borger Refinery Owner Agree to Penalty and Compliance Plan Related to August 2012 Migratory Bird Kill at Johnson Tank Farm in Hutchinson CountyRead the Press Release
AMARILLO, Texas — The U.S. Department of the Interior, Fish and Wildlife Service (USFWS), the U.S. Attorney for the Northern District of Texas, Phillips 66 Company and WRB Refining LP, entered into an Agreement and Compliance Plan on November 22, 2013, regarding facilities located near Borger, Texas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Phillips 66 and WRB Refining (Borger) own and/or operate a refinery and related support facilities, including the Johnson Tank Farm Pond in Hutchison County Texas, a three million barrel brine water pond spanning 22 acres.
In August 2012, the USFWS learned of a large migratory bird kill at the Johnson Tank Farm Pond. Approximately 260 waterfowl, mostly teal, were recovered. Borger self-reported the kill and immediately began implementing additional hazing efforts to attempt to keep migratory birds off of the pond. Additionally, Borger established an emergency treatment center to triage injured birds at the Borger facility.
Borger also installed additional bird deterrents and contracted for bird-hazing personnel to deter migratory birds off the Johnson Tank Farm Pond, during daylight hours, using a boat and air horns, provided the weather conditions and personal safety conditions permit the hazing activities.
According to the Agreement, within 30 days,
Borger agrees to pay a $50,000 violations notice;
Borger agrees to pay $10,000 in restitution to the South Plains Wildlife Rehabilitation Center;
Borger agrees to pay $38,820 to the Texas Parks and Wildlife Department for the value of the deceased migratory birds;
Borger agrees to make a $200,000 charitable contribution to the South Plains Wildlife Rehabilitation Center; and
The USFWS will not seek prosecution under the Migratory Bird Treaty Act, or other similar offenses related to Migratory Bird Activity at the Borger facilities, as long as Borger continues to comply with this Agreement and the Compliance Plan contained in this Agreement.
The Compliance Plan requires, among other things, for Borger to deploy the Merlin Detect and Deter Bird-Control Radar System™ at the Pond at the Johnson Tank Farm, to take actions with respect to the 302 Hazardous Waste Impoundment and to submit semi-annual reports to the USFWS in Lubbock. Borger also agrees to train personnel and contractors who work near Surface Waters at Borger Facilities to observe and report any Migratory Bird Activity at Surface Waters other than fresh or raw water and to maintain an on-site bird treatment center to triage injured birds.
The case was handled by Assistant U.S. Attorney Christy Drake of the U.S. Attorney’s Office in Amarillo, Texas.
Two Former Coahuila, Mexico, Politicians Indicted in the Southern District of TexasRead the Press Release
CORPUS CHRISTI, Texas - Two former Mexican politicians from the State of Coahuila have been indicted on charges of conspiring to launder monetary instruments, bank fraud, mail fraud and wire fraud, announced United States Attorney Kenneth Magidson.
The four-count sealed federal indictment was returned Nov. 20, 2013, and unsealed today. It charges Hector Javier Villarreal Hernandez, 42, former Secretary of Finance for the Mexican State of Coahuila, and Jorge Juan Torres Lopez, 59, former Interim Governor and Secretary of Finance for Coahuila with conspiring to launder monetary instruments and bank fraud. In addition, Villarreal Hernandez was also charged separately with mail fraud and Torres Lopez was charged with wire fraud.
Two previously filed civil forfeiture complaints allege Villarreal Hernandez and Torres Lopez sent more than $2 million each to offshore accounts in Bermuda after misrepresenting the source of the funds to a bank on multiple occasions. The complaints further indicate Villarreal Hernandez is facing charges in Mexico regarding an alleged false loan scheme to steal money from the federal government in Mexico. The documents allege there were several large transfers of money between the U.S. bank accounts of Torres Lopez and Villarreal Hernandez.
If convicted of the money laundering conspiracy, Villarreal Hernandez and Torres Lopez each face up to 20 years in federal prison as well as up to 30 years for bank fraud. Upon conviction of mail or wire fraud, respectively, Villarreal Hernandez and Torres Lopez further face another maximum 20-year-sentence. All charges also carry as possible punishment thousands of dollars in fines.
Neither man is in the custody of the United States and warrants remain outstanding for their arrests. Anyone with information about their whereabouts is asked to contact the Drug Enforcement Administration’s High Intensity Drug Trafficking Area Task Force office in San Antonio at 1-210-499-2900.
The investigation leading to the indictment was conducted through the Organized Crime Drug Enforcement Task Force in San Antonio, Brownsville, Houston and Corpus Christi by agents and officers of Internal Revenue Service - Criminal Investigation, Drug Enforcement Administration, Homeland Security Investigations and the Texas Attorney General’s Office.
The case is being prosecuted by Assistant United States Attorney Julie K. Hampton.
Texas Couple Sentenced to Prison for Conspiracy to Defraud the U.S. and to Engage in Money LaunderingRead the Press Release
PORTLAND, Ore. – A federal judge in Portland has sentenced Hossein Lahiji, 50, and Najmeh Vahid Dasterjerdi a.k.a. Najmeh Lahiji, 33, both of McAllen, Texas, to prison following their June 2013 convictions by a jury in Portland for conspiracy to defraud the United States and to engage in money laundering. Hossein Lahiji is a physician specializing in urology and Najmeh Vahid is an attorney, both practicing in Texas.
On November 19, 2013, Judge Garr M. King sentenced both defendants to serve a year and a day in federal prison. In addition, the defendants were each ordered to pay $200,000 in fines and jointly to pay restitution in the amount of $973,503.00 to the Internal Revenue Service for back taxes owed. The court also confirmed the jury’s verdict forfeiting an additional $600,000 which was involved in the money laundering offense to the United States.
The indictment alleged that defendants conspired to impede and impair the functions of the Internal Revenue Service in the collection of income taxes and the Office of Foreign Assets Control of the Treasury Department in the enforcement of the Presidential Embargo against Iran.
Trial evidence showed that defendants provided funds to a Portland charity, the Child Foundation, between 1998 and 2006. The Child Foundation, in turn, gave the defendants charitable donation receipts and transferred the funds to Iran. Defendants claimed charitable deductions from their income taxes for these payments. Some of the funds were used to purchase a building in Tehran in the name of Hossein Lahiji’s sister. Additional funds were used to invest in an interest-bearing account in an Iranian bank. Yet additional funds were committed to be spent at the discretion of an Iranian Ayatollah. Some of the payments were backdated to facilitate claims of charitable donations for a year prior to the year of actual payment. Many of the uses of the funds violated the Presidential embargo against Iran, instituted in 1995. Co-conspirators Child Foundation and Mehrdad Yasrebi were separately prosecuted and sentenced in March 2012. Child Foundation has since reorganized and continues to operate under the supervision of U.S. Probation officers.
The Presidential Embargo against financial transactions with Iran was first imposed by President Clinton in 1995. Those sanctions have been renewed annually by both Presidents Bush and Obama. U. S. Attorney Amanda Marshall stated that “The enforcement of the sanctions in place against financial transactions with Iran is an important priority of the Department of Justice. Those who would evade those sanctions while cheating on their taxes should expect to be prosecuted.”
Defendants are charged in a separate federal indictment in the Houston Division of the Southern District of Texas with conspiracy to commit health care fraud, health care fraud, conspiracy to violate the Iranian Embargo, and failure to file a report of foreign bank and financial accounts. Trial in the Houston case is currently scheduled for April 2014.
These cases were investigated by the FBI and the IRS - Criminal Investigations Division, and prosecuted by Assistant U.S. Attorneys David Atkinson and Charles Gorder.
Sylvia Canales-Pierson Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on November 26, 2013, before Chief U.S. District Judge Dana L. Christensen, SYLVIA CANALES-PIERSON, a 50-year-old resident of Seattle, Washington, was sentenced to a term of:
- ison: 24 months
- ecial Assessment: $100
- pervised Release: 5 years
CANALES-PIERSON was sentenced in connection with her guilty plea to conspiracy to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Tara J. Elliott, the government stated it would have proved at trial the following:
On October 28, 2011, during the execution of a Montana state search warrant, a Montana Highway Patrol Trooper and a Special Agent with the DEA seized $175,060 and approximately one half pound of methamphetamine from a concealed aftermarket compartment of a Toyota truck driven by CANALES-PIERSON. Donald Leroy Rickards was a passenger in the vehicle. The drugs were later tested by the DEA laboratory which indicated that they contained well over 50 grams of pure methamphetamine.
The agent detained CANALES-PIERSON and her sister, Maria Dolores Ramsdell, after they attempted to retrieve the truck from the Montana Highway Patrol. When interviewed, CANALES-PIERSON indicated that, under the direction of her niece she had been transporting bulk currency and/or methamphetamine about every two weeks since approximately October of 2010 between Kelso, Washington; Minneapolis, Minnesota; and San Jose, California. CANALES-PIERSON stated that her niece had made arrangements on this most recent trip for her to take the Toyota truck. CANALES-PIERSON stated that her niece paid $7,000 on average to her for making each trip, that her boyfriend Rickards had traveled with her during a majority of the trips to keep her company and to share the driving, and that CANALES-PIERSON paid Rickards about $2,000 for taking the trips with her. CANALES-PIERSON stated that she had taken her first trip in October of 2010 with her sister, Ramsdell, who had made prior trips at CANALES-PIERSON's niece's direction from Kelso, Washington, to Minneapolis, Minnesota, then to San Jose, California, back to Minneapolis, and then back to Kelso.
When interviewed, Ramsdell provided statements that were consistent with CANALES-PIERSON's statement, confirming her own involvement in and knowledge of the transportation of methamphetamine and/or bulk currency at the direction of CANALES-PIERSON's niece.
Rickards also made a statement which was consistent with CANALES-PIERSON's statement and confirmed his involvement in and knowledge of the transportation of methamphetamine and/or bulk currency at the direction of the niece.
Ramsdell and Rickards pled guilty to federal charges.
Because there is no parole in the federal system, the truth in sentencing guidelines mandate that CANALES-PIERSON will likely serve all of the time imposed by the court. In the federal system, CANALES-PIERSON does have the opportunity to earn a sentence reduction for good behavior. However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the High Intensity Drug Task Force and the Drug Enforcement Administration.
Stanley Electric Co. Ltd. Agrees to Plead Guilty to Price Fixing on Automobile Parts Installed in U.S. CarsRead the Press Release
Stanley Electric Co. Ltd., a Tokyo-based company, has agreed to plead guilty and to pay a $1.44 million criminal fine for its participation in a conspiracy to fix prices of lamp ballasts installed in cars sold in the United States and elsewhere, the Department of Justice announced today.
According to a one-count felony charge filed today in U.S. District Court for the Eastern District of Michigan in Detroit, Stanley Electric engaged in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of, automotive high-intensity discharge (HID) lamp ballasts sold to automakers in the United States and elsewhere. Stanley Electric has also agreed to cooperate with the department’s ongoing investigation. The plea agreement is subject to court approval.The department said that Stanley Electric and its co-conspirators sold or supplied the ballasts at noncompetitive prices to automakers in the United States and elsewhere. Stanley Electric’s involvement in the conspiracy to fix prices of automotive HID lamp ballasts lasted from as early as July 1998 until at least February 2010.
Stanley Electric manufactures and sells automotive HID headlamps, which contain automotive HID lamp ballasts. An automotive HID lamp ballast is an electrical device that is essential for the operation of an HID headlamp. It regulates the electrical current used to ignite and control the electrical arc that generates the intensely bright light emitted by an automotive HID headlamp fixture.
The department said the company and its co-conspirators carried out the conspiracy through meetings and conversations in which they discussed and agreed upon bids, price quotations and price adjustments and agreed to allocate among the companies certain sales of HID lamp ballasts sold to automobile and component manufacturers.
Including Stanley, 23 corporations have been charged in the department’s investigation into price fixing and bid rigging in the auto parts industry. Those companies have agreed to pay a total of over $1.8 billion in fines. Additionally, 26 individuals have been charged.
Stanley Electric Co. Ltd. is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s prosecution arose from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charges were brought by the National Criminal Enforcement Section, with the assistance of the Detroit, Michigan Field Office of the FBI and the FBI headquarters’ International Corruption Unit. Anyone with information concerning the focus of this investigation should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the Detroit Field Office of the FBI at 313-965-2323.
Springfield Man Sentenced to Ten Years in Prison for Distributing Child PornographyRead the Press Release
EUGENE, Ore. – On Tuesday, November 26, 2013, Chief U.S. District Judge Ann Aiken sentenced Kenneth Nin Chin, 53, of Springfield, Oregon, to a prison term of ten years and one month for distributing child pornography. Following an investigation by the Federal Bureau of Investigation and the Department of Homeland Security, a search warrant was executed at Chin’s residence. On Chin’s computer, agents discovered thousands of images depicting child exploitation, including the sexual abuse of infants and toddlers, and it was determined that Chin was also involved in distributing these images online to others. In addition, Chin engaged in online chats in which he wrote about his desire to engage in sexual activity with minor boys.
“Images of child exploitation cause tremendous harm to the victims-not just by the horrible abuse involved in creating the images but in the perpetuation of the abuse every time these images are shared,” stated U.S. Attorney Amanda Marshall. “Those involved in possessing and distributing these horrific images help fuel the market for such depravity, and my office is committed to doing everything we can to put a stop to it.”
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.
This case was investigated by the Federal Bureau of Investigation and Department of Homeland Security, and was prosecuted by Assistant U.S. Attorney Jeffrey S. Sweet.
Parmelee Man Sentence for Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmelee, South Dakota, man convicted of Child Abuse was sentenced on November 26, 2013, by Roberto A. Lange.
Morrisette was immediately turned over to the custody of the U.S. Marshals Service.
Joseph Morrisette, age 43, was sentenced to 9 months of custody, 18 months of supervised release, and $100 special assessment to the Federal Crime Victims Fund.
Morrisette was indicted for Child Abuse by a federal grand jury on August 21, 2013. He pled guilty on September 16, 2013.
Morrisette’s conviction was the result of a July 9, 2013, incident when Morrisette was babysitting several children at his home while he was drinking. While he was intoxicated, he struck the victim and gave the child a black eye.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Nine Defendants, Including Title Company Owners and Lawyers, Indicted in Two Separate Mortgage Fraud SchemesRead the Press Release
CHICAGO — A couple who owned a now-defunct suburban title company, a disbarred attorney, and an attorney are among nine defendants who have been indicted in two separate mortgage fraud cases, federal law enforcement officials announced today. Seven defendants were charged together in one case, and two in the second case, together alleging schemes to fraudulently obtain at least four residential mortgage loans totaling more than $1 million from lenders.
Both indictments allege that the mortgages were obtained to finance the purchase of properties on Chicago’s south side, using fraudulent means such as straw purchasers, short sales, inflated prices, and unqualified buyers, while the defendants allegedly profited. As a result, the lenders incurred losses because the mortgages were not fully recovered through subsequent sale or foreclosure.
Seven defendants were charged in an indictment that was unsealed on Monday following the arrest of HARVEY WRIGHT, 46, of Chicago, a disbarred South Holland attorney, and PRECIOUS HOUSE, 47, of Chicago. Also indicted, but not arrested, were DAVID GUEL, 60, and his wife, MARY GLEASON, 48, both of Blue Island; MUNTAZER ALI SAIYED, also known as “Monty Saiyed,” 37, of Bartlett; SAGED ANSARI, 32, of Hanover Park; and AZEEM SYED, 30, of Bolingbrook. All seven were charged with two counts of wire fraud and House, Syed, Saiyed, and Ansari were also charged with one count each of identity theft. The indictment seeks forfeiture of more than $800,000.
Guel and Gleason owned and operated the former U.S. Worldwide Title Services LLC, a title company located in Downers Grove.
All seven defendants pleaded not guilty yesterday or Monday in U.S. District Court and were released on bond. A status hearing was scheduled for Jan. 13.
According to the indictment, between September 2008 and March 2009, the defendants caused two fraudulent mortgage loans to be issued by lenders for properties at 4823 South Racine Ave., and 6738 South Marshfield Ave. The alleged fraud involved false representations in documents, including real estate contracts, loan applications, title commitments, and HUD-1 settlement statements concerning sales prices, the true disbursement of the loan proceeds at closing, the buyer’s assets, employment, and income.
The defendants allegedly used straw buyers who had no intention of residing in the property and making mortgage payments, as well as stolen identities of individuals who did not know that their identities were being used to purchase property. Guel, Gleason, Wright, and House allegedly conducted “double closings” at Worldwide Title in which a single property was sold twice through a short sale of the property from an owner to a buyer, who only temporarily took ownership before immediately re-selling to a second buyer at an inflated sales price using a fraudulently obtained mortgage to finance the purchase.
House allegedly facilitated the double closings by recruiting individuals to pose as the first and second buyers and arranging for them to use stolen identities provided by Syed, Saiyed, and Ansari, in connection with the transactions, the indictment alleges.
Guel, Gleason, and Wright allegedly prepared fraudulent documents stating that the properties had been transferred into a trust approximately a year before the double closing to conceal from the lender that the property was being sold twice, including on the same day. These three defendants and House allegedly obtained loan proceeds for their own personal benefit.
This case is part of Operation Mad House, an undercover investigation designed to combat mortgage and real estate fraud in the Chicago area with a focus on professionals in the real estate industry. Since 2009, more than 50 defendants have been convicted, including title company operators, mortgage brokers, licensed appraisers, and attorneys.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Barry McLaughlin, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development Office of Inspector General in Chicago; and James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
The government is being represented by Assistant U.S. Attorneys Sunil Harjani and Kathryn Malizia.
In an unrelated case, GEORGE KOUVELIS, 39, of Bloomingdale, who bought and sold residential properties, and KARIM DURE, 39, of Chicago, an Evanston attorney, were each charged with two counts of wire fraud in an indictment that was unsealed on Nov. 14 after Kouvelis was arrested. Kouvelis and Dure, who was not arrested, both pleaded not guilty and were released on bond. Their next court date is Jan. 6. The indictment seeks forfeiture of $521,250.
According to the indictment, between November 2008 and March 2009, Kouvelis and Dure caused a buyer to obtain two fraudulent mortgage loans to purchase Kouvelis’ properties at 5804 South Princeton Ave., and 5563 South Shields Ave. The defendants allegedly made false representations in documents, including real estate contracts, loan applications, and HUD-1 settlement statements concerning inflated sales prices, money paid to the buyer for purchasing the properties, the buyer’s assets, liabilities, and source of down payment.
The indictment alleges that Kouvelis fraudulently obtained mortgage loan proceeds through false closing documents, which concealed that the buyer was being paid to purchase the properties; concealed that the funds being used for down payments were provided by another individual; inflated purchase prices; and concealed that the buyer was contributing little or no equity to the transactions. Dure allegedly represented the buyer knowing that the loans were being funded based on false information about the buyer’s qualifications, including a will submitted by the buyer and a letter that Dure submitted to the lender verifying that the buyer had received $200,000 from his grandfather’s estate.
Mr. Fardon announced the Kouvelis / Dure charges with Mr. McLaughlin, Mr. Holley, and Tony Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The government is being represented by Assistant U.S. Attorney Jason Yonan.
Each count of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, and restitution is mandatory. The identity theft count against defendants House, Syed, Saiyed, and Ansari carries a maximum of 15 years in prison and a $250,000 fine. If convicted, the Court may impose an alternate fine totaling twice the loss to any victim or twice the gain to the defendant, whichever is greater. The Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that indictments contain only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Since 2008, several hundred defendants have been charged in Federal Court in Chicago and Rockford with engaging in various mortgage fraud schemes involving more than 1,000 properties and more than $300 million in potential losses, signifying the high priority that federal law enforcement officials give mortgage fraud in an effort to deter others from engaging in crimes relating to residential and commercial real estate.
Today’s announcement is part of efforts underway by the Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has facilitated increased investigation and prosecution of financial crimes; enhanced coordination and cooperation among federal, state and local authorities; addressed discrimination in the lending and financial markets, and conducted outreach to the 6 public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit stopfraud.gov.
Kouvelis Indictment
Guel IndictmentNew Haven Man Sentenced to 46 Months in Federal Prison for Distributing Crack CocaineRead the Press Release
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Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ERICK EVANS, also known as “E.J.” and “Hoov,” 23, of New Haven, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 46 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
EVANS is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms.
EVANS was arrested on May 17, 2012, after he was found in possession of crack cocaine that he intended to distribute. On September 4, 2013, he pleaded guilty to one count of possession with intent to distribute and to distribute cocaine base (“crack cocaine”). This is his first felony conviction.
EVANS was remanded to federal custody on November 14, 2013, after he violated the conditions of bond.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
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(203) 821-3722 [email protected]Navajo Woman Pleads Guilty to Involuntary Manslaughter Charge Arising Out of Death of Isleta Pueblo ManRead the Press Release
ALBUQUERQUE – Julisa Raelynn Sanchez, 20, an enrolled member of the Navajo Nation who resides in Peralta, N.M., pleaded guilty today to an involuntary manslaughter charge under a plea agreement with the U.S. Attorney’s Office.
Sanchez was arrested on May 22, 2013, on a criminal complaint charging her with involuntary manslaughter and assault charges arising out of a May 11, 2013, single car motor vehicle crash occurring on Isleta Pueblo lands. She subsequently was indicted and charged with involuntary manslaughter and assault resulting in serious bodily injury.
Court filings reflect that in the early hours of May 11, 2013, Sanchez lost control of the vehicle she was driving, drove the vehicle into a water-filled irrigation ditch, and slammed into a cement pillar in the Chicala lateral ditch bank in Isleta Pueblo. At the time of the crash, there were three passengers in Sanchez’s vehicle, two of whom were seriously injured, and a third, a 26-year-old Isleta Pueblo man (victim), who was pronounced dead at the scene. Sanchez was driving while intoxicated when the crash occurred.
Today, Sanchez entered a guilty plea to Count 1 of the indictment charging her with involuntary manslaughter. Sanchez admitted that she killed the victim while driving while under the influence of alcohol on May 11, 2012.
Sanchez remains on conditions of release pending her sentencing hearing, which has yet to be scheduled. Sanchez faces a maximum penalty of eight years of imprisonment followed by three years of supervised release and restitution as ordered by the Court.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Lockport man pleads guilty to drug conspiracy chargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Alfonzo Maye a/k/a “Fonzo,” 41, of Lockport, N.Y., pleaded guilty before U.S. Magistrate Judge Leslie G. Foschio, to conspiracy to possess with intent to distribute, and to distribute, cocaine. The charge carries a maximum penalty of 20 years in prison, a $1,000,000 fine, or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that Maye distributed cocaine and cocaine base in the Lockport area from June, 2009 through August, 2010, which was supplied to him by co-defendant Eric Williams. Maye is one of 22 defendants convicted as a result of this drug investigation.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, and the Niagara County Drug Task Force, under the direction of Sheriff James Votour.Lansing Man Sentenced to 25 Years in Federal Prison for Role in Drug Dealing in Mount Vernon Area of Northwest LansingRead the Press Release
Lansing and ATF Investigation Results in 80% Decrease in Calls for Service in Area
GRAND RAPIDS, MICHIGAN – Merza Mizori, 24, of Lansing, Michigan was sentenced to 300 months (25 years) in federal prison for distributing over 28 grams of crack cocaine, U.S. Attorney Patrick A. Miles, Jr., Acting Special Agent in Charge (SAC) Daryl R. McCrary, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Michael Yankowski, Lansing Police Department (LPD), announced today. In addition to the prison term, U.S. Chief District Judge Paul L. Maloney imposed five years of supervised release that commences once Mizori is released from imprisonment.
In 2010, LPD and ATF initiated a joint investigation into criminal activity in the Mount Vernon Public Housing area as a result of a large volume of calls for service in the area for drug trafficking and firearm violence. The joint investigation identified Mizori, who lived in a Mount Vernon unit, as one of the individuals responsible for dealing crack cocaine in the area. In January 2013, a federal grand jury indicted Mizori, his brother Serwan Mizori, 23; Christapher Jones, 22; Gregory Dalton, 24; and DeShun Dalton, 22, with multiple drug charges.
Mizori pled guilty to the distribution charge and the others pled guilty to various charges. Chief Judge Maloney sentenced the others to federal prison as follows: Serwan Mizori to 240 months (20 years) in prison and five years’ supervised release for his conviction of distribution of crack cocaine; Jones to 120 months (10 years) in prison and five years’ supervised release for his conviction of distribution of over 28 grams of crack cocaine; Gregory Dalton to 106 months in prison and four years’ supervised release for his conviction of distribution of crack cocaine and possession of a firearm in furtherance of drug trafficking; and DeShun Dalton to 51 months in prison and three years’ supervised release for his conviction of distribution of crack cocaine.
U.S. Attorney Miles noted the “investigation and prosecution were a perfect example of how federal and local authorities can work together to address specific problems in our communities, especially firearm violence and drug trafficking.” Acting SAC McCrary noted that “ATF values the strong working relationship with the Lansing Police Department that makes this type of community impact possible.” Lansing Police Department Chief Yankowski stated, “The community is in fact safer as proven by departmental crime analysis that reveals an 80% decrease in calls for service to the Mount Vernon area after this group was arrested from the area in January 2013.”.
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Justice Department Reaches Agreement with Oklahoma Child Care Center to Ensure Equal Rights for Children with DisabilitiesRead the Press Release
The Justice Department announced today that it has reached a settlement with Camelot Child Development Center of Oklahoma City and Edmond, Okla., under the Americans with Disabilities Act (ADA). The settlement resolves allegations that Camelot violated the ADA by prohibiting a child with Down syndrome from field trips, and threatening to expel her, because of her developmental delays. Because the child is not fully toilet-trained, she wears pull-up diapers and requires help with toileting. Camelot provides toileting assistance to younger children, but Camelot refused to provide such assistance to the child with Down syndrome during field trips. As a result, the child could not join in these outings with the other children. In addition, at one point, Camelot threatened to expel the child because of her need for toileting assistance.
Title III of the ADA prohibits discrimination on the basis of disability in child care centers. Under the ADA, child care centers must make reasonable modifications to their policies, practices or procedures when necessary to provide equal access to a child with a disability, unless a modification would fundamentally alter the nature of the goods and services. Personal services, such as diapering or toileting assistance, may be required for children who need it due to a disability, regardless of age, when such personal services are provided to other children.
Camelot worked cooperatively with the Justice Department throughout the investigation to change its policies to ensure the center will treat children with disabilities fairly and equally. Under the agreement, Camelot will also pay $3,000 to the family and provide one full year of child care services free of charge to compensate the child and the mother for the harm they have endured as a result of Camelot’s actions. In addition, Camelot will train its staff on the ADA and develop and implement an anti-discrimination policy. The department will monitor Camelot’s compliance for three years.
“Equal access to school and after-school programs is essential to children and parents across the country,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “School and after-school programs allow children with disabilities to learn and play with their peers and develop important social skills. The Civil Rights Division takes disability discrimination in child care settings very seriously and will not allow the exclusion of children with developmental delays.”
“Children are our most valuable resource and must be afforded equal opportunities to grow, learn, and develop,” said U.S. Attorney Sanford C. Coats. “The Americans with Disabilities Act ensures that a child with a disability has the same access to those opportunities as a child who is not disabled.”
The enforcement of the ADA is a top priority of the department’s Civil Rights Division. Those interested in finding out more about this settlement or the obligations of child care centers under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov . ADA complaints may be filed by email to [email protected] .
Isabel Woman Sentenced for Simple Assault of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that an Isabel, South Dakota, woman convicted of Simple Assault of a Minor was sentenced on November 25, 2013, by U.S. Magistrate Judge Mark A. Moreno.
This case was investigated by the Federal Bureau of Investigation and the Cheyenne River Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Crystal Lee Reeder, a/k/a Crystal Taylor, age 29, was sentenced to 6 months of probation and a $25 special assessment to the Federal Crime Victims Fund.
Reeder was indicted for Child Abuse by a federal grand jury on June 12, 2013. She pled guilty on September 19, 2013, to Simple Assault of a Minor.
In May 2012, the victim went to Reeder’s home to visit. During the visit, Reeder asked the victim, who was under the age of 16, inappropriate questions and offered alcohol to the victim, which she refused. While the victim was sitting on the couch, Reeder engaged in offensive touching of the victim and a Simple Assault of the victim’s person.
Former Suppliers of Beef to National School Lunch Program<br /> Settle Allegations of Improper Practices and Mistreating CowsRead the Press Release
Several California companies and individuals that formerly supplied beef to the National School Lunch Program have agreed to settle allegations of inhumane handling of cattle, circumventing appropriate inspection of nonambulatory disabled (“downer”) cattle and false representations regarding their eligibility to process beef, the Justice Department announced today. The announcement follows approval of the last of these settlements by a California probate court.
“Children across the country depend on the National School Lunch Program to provide them with a healthy meal each day, so we all depend on companies providing food to the program to follow the rules designed to ensure those meals are safe to eat,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “The Justice Department will pursue aggressively anyone whose unlawful conduct puts the safety of our food at risk.”
“The contractors who supply beef and other meat products to schools and child-care facilities have a responsibility to provide our nation’s young people with products that come only from healthy and humanely handled animals,” said U.S. Attorney for the Central District of California André Birotte Jr. “This settlement holds accountable businesses that mistreated cows on a regular basis and routinely evaded a critically important USDA inspection procedure that allowed ‘downer cows’ to be processed into food.”
The settlements will conclude a lawsuit initiated by the Humane Society of the United States (HSUS) under the whistleblower provisions of the False Claims Act (FCA) after an HSUS investigator videotaped alleged inhumane cattle handling and improper downer cattle inspection practices at the slaughterhouse and meat processing facility of Westland Meat Co. and Hallmark Meat Packing Co. in Chino, Calif. The government later joined the lawsuit and brought additional claims that the defendants concealed their ineligibility to process beef because a convicted felon, Aaron “Arnie” Magidow, was a partner in and otherwise responsibly connected with the facility’s operations. U.S. Department of Agriculture (USDA) regulations applicable to suppliers of the National School Lunch Program prohibit the inhumane handling of cattle, require the proper inspection and disposition of downer cattle and require suppliers to identify convicted felons who are responsibly connected to the suppliers’ operations.
The National School Lunch Program, administered by the USDA, is a federally assisted meal program operating in public and nonprofit private schools and residential child-care institutions. The program provides nutritionally balanced, low-cost or free lunches to children each school day. All ground beef containing the defendants’ products was recalled as of Feb. 16, 2008, and the defendants no longer supply beef to the National School Lunch Program.
“A top priority for USDA’s Office of Inspector General (OIG) is protecting the integrity of America’s food supply by investigating violations of the Federal Meat Inspection Act,” said USDA-OIG Western Region Special Agent in Charge Lori Chan. “Agents from OIG’s Diamond Bar, Calif., office conducted an extensive investigation of the Hallmark/Westland facility, which supplied ground beef to schools through USDA’s National School Lunch Program. The government’s joint investigation led to one of the largest civil settlements in OIG’s history.”
Under the settlements, Westland Meat Co., based in Corona Del Mar, Calif., and its owner Steve Mendell will pay $240,000, and Westland will enter into a consent judgment for $155.68 million. M&M Management, also based in Corona Del Mar, Calif., and Cattleman’s Choice, based in Commerce, Calif., and the estate of Cattleman’s deceased owner, Arnie Magidow, and Magidow’s surviving spouse will pay a total of approximately $2.45 million. Magidow’s surviving spouse was named in the lawsuit as a successor in interest to Magidow and is not alleged to have engaged in any wrongdoing. In October 2012, defendants Donald R. Hallmark and Donald W. Hallmark settled allegations for $304,130.The FCA’s whistleblower provisions, under which HSUS filed the lawsuit, permit a private entity to bring a lawsuit on behalf of the government and to share in any proceeds from the suit. The FCA also allows the government to intervene in the lawsuit, as it has done in this case. As a result of the settlements announced today, HSUS will receive approximately $600,000.
The case was handled by the U.S. Attorney’s Office for the Central District of California and the Justice Department’s Civil Division, Commercial Litigation Branch; in cooperation with the USDA Office of Inspector General. The claims resolved by the settlement are allegations only; there has been no determination of liability.
Former Supplier of Beef to National School Lunch Program Settle Allegations of Improper Practices and Mistreating CowsRead the Press Release
LOS ANGELES -- Several California companies and individuals that formerly supplied beef to the National School Lunch Program have agreed to settle allegations of inhumane handling of cattle, circumventing appropriate inspection of nonambulatory disabled (“downer”) cattle and false representations regarding their eligibility to process beef, the Justice Department announced today. The announcement follows approval of the last of these settlements by a California probate court.
The settlements will conclude a lawsuit initiated by the Humane Society of the United States (HSUS) under the whistleblower provisions of the False Claims Act (FCA) after an HSUS investigator videotaped alleged inhumane cattle handling and improper downer cattle inspection practices at the slaughterhouse and meat processing facility of Westland Meat Co. and Hallmark Meat Packing Co. in Chino. The government later joined the lawsuit and brought additional claims that the defendants concealed their ineligibility to process beef because a convicted felon, Aaron “Arnie” Magidow, was a partner in and otherwise responsibly connected with the facility’s operations. U.S. Department of Agriculture (USDA) regulations applicable to suppliers of the National School Lunch Program prohibit the inhumane handling of cattle, require the proper inspection and disposition of downer cattle and require suppliers to identify convicted felons who are responsibly connected to the suppliers’ operations.
“The contractors who supply beef and other meat products to schools and child-care facilities have a responsibility to provide our nation’s young people with products that come only from healthy and humanely handled animals,” said United States Attorney André Birotte Jr. “This settlement holds accountable businesses that mistreated cows on a regular basis and routinely evaded a critically important USDA inspection procedure that allowed ‘downer cows’ to be processed into food.”
Stuart F. Delery, the Assistant Attorney General for the Justice Department’s Civil Division, said: “Children across the country depend on the National School Lunch Program to provide them with a healthy meal each day, so we all depend on companies providing food to the program to follow the rules designed to ensure those meals are safe to eat. The Justice Department will pursue aggressively anyone whose unlawful conduct puts the safety of our food at risk.”
The National School Lunch Program, administered by the USDA, is a federally assisted meal program operating in public and nonprofit private schools and residential child-care institutions. The program provides nutritionally balanced, low-cost or free lunches to children each school day. All ground beef containing the defendants’ products was recalled as of Feb. 16, 2008, and the defendants no longer supply beef to the National School Lunch Program.
“A top priority for USDA’s Office of Inspector General (OIG) is protecting the integrity of America’s food supply by investigating violations of the Federal Meat Inspection Act,” said USDA-OIG Western Region Special Agent in Charge Lori Chan. “Agents from OIG’s Diamond Bar office conducted an extensive investigation of the Hallmark/Westland facility, which supplied ground beef to schools through USDA’s National School Lunch Program. The government’s joint investigation led to one of the largest civil settlements in OIG’s history.”
Under the settlements, Westland Meat Co., based in Corona Del Mar, and its owner, Steve Mendell, will pay $240,000, and Westland will enter into a consent judgment for $155.68 million. M&M Management, also based in Corona Del Mar; Cattleman’s Choice, based in Commerce; the estate of Cattleman’s deceased owner, Arnie Magidow; and Magidow’s surviving spouse will pay a total of approximately $2.45 million. Magidow’s surviving spouse was named in the lawsuit as a successor in interest to Magidow and is not alleged to have engaged in any wrongdoing. In October 2012, defendants Donald R. Hallmark and Donald W. Hallmark settled allegations for $304,130.
The FCA’s whistleblower provisions, under which HSUS filed the lawsuit, permit a private entity to bring a lawsuit on behalf of the government and to share in any proceeds from the suit. The FCA also allows the government to intervene in the lawsuit, as it has done in this case. As a result of the settlements announced today, HSUS will receive approximately $600,000.
The case was handled by the U.S. Attorney’s Office for the Central District of California and the Justice Department’s Civil Division, Commercial Litigation Branch; in cooperation with the USDA Office of Inspector General. The claims resolved by the settlement are allegations only; there has been no determination of liability.
Release No. 13-136
Former DEA Pilot Sentenced for Lying About Number of Missions FlownRead the Press Release
DENVER – Jeremy S. Peres, age 44, of Denver, Colorado, and a former DEA pilot, was sentenced by U.S. District Court Judge Robert E. Blackburn to serve 1 years’ probation, and was ordered to pay restitution totaling $4,368 to the federal government for making and using a false document knowing it contains false statements, the Department of Justice announced. Specifically, Peres lied about the number of missions he flew while working for the DEA. Certain missions earn law enforcement pilot hazard pay, which in this case Peres received. Peres no longer works for the DEA.
Peres was indicted by a federal grand jury in Denver on February 26, 2013. He pled guilty to making and using false documents on August 15, 2013. He was sentenced today, November 27, 2013.
According to court documents, including the stipulated facts in the plea agreement, the defendant was a Drug Enforcement Administration (DEA) pilot. The DEA maintained aircraft at a Metro Denver airport, and the defendant was a DEA pilot based in Colorado. The DEA paid the defendant a salary, and the defendant was also entitled to receive hazard pay when he flew missions under specified hazardous conditions. In order to receive the supplemental hazard pay, the defendant was required to submit a Flight Hazard Pay Certificate (FHPC) to the DEA for each qualifying flight.
Between November 2011 and July 2012, Peres submitted 44 false and fraudulent FHPCs for missions he did not actually pilot or co-pilot. When he was contacted by his supervisor, he stated that there were discrepancies in the DEA paperwork because he was actually flying a Federal Bureau of Investigation (FBI) plane for those instances. The defendant, in fact as he knew, had not flown a FBI plane in those instances, and in fact had not flown any plane. The defendant’s submission of the false FHPCs caused the DEA to pay the defendant hazard pay equal to approximately 25 percent of his daily salary, totaling $4,368.
This case was investigated by the Department of Justice Office of the Inspector General. Peres was prosecuted by Assistant U.S. Attorney Anna Edgar.
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Emmonak Woman sentenced to prison for theft of cash from registered mailRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Emmonak woman who pled guilty was sentenced in federal court in Anchorage for four felony violations of theft of mail by an officer or employee of the U.S. Postal Service.
Sharon Andrews, 54, of Emmonak, Alaska, admitted to stealing nine registered mail packages containing a total of $174,000 in cash. Andrews was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline to 4 months in prison, three years of supervised release, and was ordered to repay $164,700 in restitution.
According to Assistant U.S. Attorney Bryan Schroder, who prosecuted the case, in 2010 Andrews was the Postmaster in Emmonak, Alaska. In May 2010, Andrews illegally took possession of three registered mail packages containing a total of $44,000 in cash. The packages were supposed to be forwarded to Kotlik, Alaska, but Andrews stole them instead. In September 2010, she illegally took possession of an additional registered mail package containing $25,000 in cash. That package was also addressed to Kotlik, Alaska. Finally, in October 2012, Andrews again illegally took possession of five additional packages containing a total of $93,100 in cash, also addressed to Kotlik.
Ms. Loeffler commends the U.S. Postal Service Office of Inspector General, and the U.S. Postal Inspection Service for the investigation of this case.
East St. Louis Post Office Supervisor Indicted for Stealing PackagesRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Jane Johanna Emily, a/k/a Jane Moeller, 41, of St. Louis, Missouri, was arraigned on November 26, 2013, at the East St. Louis federal courthouse on three charges that she stole packages from the U.S. Mail.
The indictment alleges that in March and April 2013, Emily, who was working as a supervisor in the East St. Louis Post Office, opened and stole mail packages.
The federal grand jury indictment charges Emily with Obstruction of Mail in violation of Title 18, United States Code, Section 1702; Theft of U.S. Mail by a Postal Employee in violation of Title 18, United States Code, Section 1709; and Opening of Mail in violation of Title 18, United States Code, Section 1703(a). Each charge carries a maximum penalty of 5 years in prison, a $250,000 fine, and up to 3 years of supervised release.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
The case was investigated by agents of the U.S. Postal Service, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan.
Dustin Berg Panian Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on November 26, 2013, before Chief U.S. District Judge Dana L. Christensen, DUSTIN BERG PANIAN, a 25-year-old resident of Missoula, was sentenced to a term of:
- ison: 12 months and 1 day
- ecial Assessment: $100
- pervised Release: 5 years
PANIAN was sentenced in connection with his guilty plea to conspiracy to distribute cocaine and heroin.
In an Offer of Proof filed by Assistant U.S. Attorney Tara J. Elliott, the government stated it would have proved at trial the following:
Beginning in approximately the spring of 2011 and continuing through February of 2013, PANIAN, Mackenzie Richard Keene Joiner, and Austin Leo Timothy Hagman distributed cocaine throughout the Missoula area. A CI (CI 1) would have testified that each defendant received more than 500 grams of cocaine from him/her during this period for redistribution in Missoula. A second CI (CI 2) would have testified and confirmed this information.
Finally, a third CI (CI 3) would have testified to receiving narcotics from Joiner and would have further testified that s/he knew that Joiner and Hagman worked together and that they and PANIAN received their drugs from CI 1.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that he will likely serve all of the time imposed by the court. In the federal system, they do have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
District Man Sentenced to 15 Years in Prison on Federal Narcotics ChargesDefendant Fled Area After Pleading Guilty to Crimes in 2009; Later Captured by the U.S. Marshals ServiceRead the Press Release
WASHINGTON – Deandre Kelly, 31, formerly of Washington, D.C., has been sentenced to 15 years in prison on federal narcotics charges, announced U.S. Attorney Ronald C. Machen Jr., Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD) and Mark A. Magaw, Chief of the Prince George’s County, Md. Police Department.
Kelly pled guilty in July 2009 in the U.S. District Court for the District of Columbia to charges filed in two separate cases. In one, he pled guilty to conspiracy to distribute and possess with intent to distribute PCP. In the other, he pled guilty to possession with intent to distribute cocaine base. While awaiting sentencing and other hearings in that case, Kelly disappeared. A warrant was issued for his arrest in September 2009 after he failed to appear for a court hearing.
Kelly remained a fugitive until Jan. 22, 2011, when he was arrested in Garrett County, Md., after leading police on a high-speed car chase. During that chase, he lost control of a vehicle several times, striking a guardrail and a bridge pillar, before ultimately becoming disabled in a snow embankment. Law enforcement discovered marijuana and a loaded firearm in the vehicle, and Kelly was arrested. However, the following evening, he made an armed escape from the Garrett County Detention Center, aided by associates waiting for him in the parking lot.
The U.S. Marshals Service arrested Kelly on May 13, 2011 in Lynchburg, Va., and he has been in custody ever since. The actions in Maryland remain under investigation.
The 15-year sentence, imposed Nov. 14, 2013 by the Honorable Emmet G. Sullivan, was made public by the Court this week. The sentence was for the earlier drug offenses, involving crimes in the District of Columbia and Maryland. One case involved a search of Kelly’s residence in February 2009 that led to the recovery of PCP, a revolver and ammunition. As part of his plea, Kelly admitted to possessing the narcotics, firearm and ammunition, and to conspiring with others to distribute PCP. The second case, transferred to the District of Columbia from Maryland, involved the recovery of crack cocaine from Kelly’s vehicle following a traffic stop in Prince George’s County in July 2008.
Kelly has three previous convictions involving narcotics, as well as a conviction for conspiracy to commit robbery.
In announcing the sentence, U.S. Attorney Machen, Chief Lanier and Chief Magaw commended the work of those who investigated the drug offenses for the MPD and Prince George’s County Police Department. They also expressed appreciation to the U.S. Marshals Service for its work in locating and arresting the defendant, as well as the U.S. Attorney’s Office for the District of Maryland for its work on the case. Finally, they acknowledged the efforts of Assistant U.S. Attorney Kathleen A. Connolly and former Assistant U.S. Attorney Patrick Costello, Jr., who investigated and prosecuted the case.
13-408Clay County Jail Administrator Indicted for Violating Inmates' Civil RightsRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted the former jail administrator of the Clay County Detention Center for violating the civil rights of four inmates by using his authority to sexually abuse or otherwise deprive the inmates of their constitutional rights, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
An indictment filed in U.S. District Court charges JEFFREY SCOTT COTNEY, 48, of Ashland, with eight counts of deprivation of rights under color of law between May 2009 and spring 2010 while he worked as Clay County's jail administrator.
"It is unacceptable for law enforcement officers who are entrusted with police powers to sexually abuse inmates," Vance said. "People convicted of crimes are to be punished by the justice system according to the rule of law. They should not be subjected to a deprivation of their constitutional rights by one who abuses the power of his badge for personal gratification."
The first four counts of the indictment charge Cotney with coercing an inmate to submit to a sexual act on four separate dates between May 2009 and September 2009. Count Five charges Cotney with depriving that same inmate of his liberty, without due process of law, by withdrawing the inmate's application for acceptance into a community corrections program in Barbour County in order to keep the man confined in the Clay County Detention Center. Cotney falsely represented the inmate's interest in the community corrections program and withdrew his application for the program without the inmate's knowledge, according to the indictment.
Counts Six and Seven charge Cotney with directing two inmates, one in August 2009 and the other in spring 2010, to disrobe and then rubbing the tattoos on their bodies, thereby depriving them of their constitutional rights to be free from unreasonable searches and to possess bodily privacy and integrity.
Count Eight charges Cotney with depriving a fourth inmate of his right to be free from cruel and unusual punishment by falsely accusing the inmate of possessing contraband, ordering him into lockdown for 45 days and having him transferred to a state prison, all in retaliation for the man rejecting a sexual proposition from Cotney.
Cotney could face a total of eight years in prison on all counts charged.
The FBI and the Alabama Bureau of Investigation investigated the case, which Assistant U.S. Attorney Tamarra Matthews Johnson is prosecuting.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent and it is the government's responsibility to prove guilt beyond a reasonable doubt at trial.