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Friday 13 September 2013
Florida Doctors, Hospitals and Clinics to Pay $3.5 Million <br /> to Settle Allegations of Improper Medicare, Medicaid and TRICARE BillingRead the Press Release
Radiation oncology providers in Pensacola, Fla., will pay $3.5 million to the government and the state of Florida to resolve allegations that they billed Medicare, Medicaid and TRICARE – the health care program for uniformed service members, retirees and their families worldwide – for radiation oncology services that were not eligible for payment, the Justice Department announced today. The defendants include Gulf Region Radiation Oncology Centers Inc. (GRROC), Gulf Region Radiation Oncology MSO LLC, Sacred Heart Health System Inc., West Florida Medical Center Clinic P.A., Emerald Coast Radiation Oncology Center LLC (ECROC), Dr. Gerald Lowrey and Dr. Rod Krentel.
The government alleged that between 2007 and 2011, the defendants regularly billed for radiation oncology services that were not supervised by a physician, as required by Medicare, Medicaid and TRICARE, and that, in fact, these services were often performed while the defendant doctors were on vacation or were working at another radiation oncology clinic. The government also alleged that the defendants billed for other treatment services even when patients’ medical records provided no evidence that the services were rendered. The defendants also allegedly billed twice for the same services and misrepresented the level of a service provided to increase their reimbursement from the federal health care programs.
“It is critical that federal health care beneficiaries receive care that is properly supervised,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “We will continue to pursue companies and individuals that seek to boost their profits at the expense of taxpayers.”
Since December 2007, Sacred Heart Health System Inc. and West Florida Medical Center Clinic P.A. have been the sole shareholders of Gulf Region Radiation Oncology MSO LLC and GRROC. GRROC provides radiation oncology services at two locations in Pensacola, Fla. Sacred Heart was also a shareholder in ECROC, a radiation oncology center located in Destin, Fla., approximately 60 miles from Pensacola. Beginning in December 2007, Lowrey and Krentel, both radiation oncologists, began providing physician services at the GRROC clinics, and in June 2008, they began providing services at ECROC.
“Submitting false claims for medical services raises the cost of health care for all of us as patients and taxpayers,” said Pamela C. Marsh, U.S. Attorney for the Northern District of Florida. “Patients, employees and others who suspect billing fraud on the part of health care providers should not hesitate to report such fraud to federal authorities. Health care providers – both corporations and individuals – must be held accountable when they submit false information.”The allegations resolved by today’s settlement were first raised in a lawsuit filed against the defendants under the qui tam, or whistleblower, provisions of the False Claims Act. The act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. As part of the settlement, the whistleblower, Richard Koch, who previously worked at GRROC, will receive approximately $609,796 from the federal share of the settlement amount.
In addition to the $3.5 million payment, defendants GRROC, Lowrey and Krentel entered into Integrity Agreements with the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG) intended to deter wrongful conduct in the future. The agreements require enhanced accountability and monitoring activities to be conducted by both internal and independent external reviewers.
“Patient care supervision is critical for ensuring that Medicare beneficiaries receive needed, top-quality care,” said Christopher B. Dennis, Special Agent in Charge, HHS-OIG, Office of Investigations, Miami Region. “Our increased investigative efforts in the Florida panhandle show that we will protect taxpayer-funded government health programs regardless of where perpetrators might be located.”
Assistant Attorney General Delery thanked the Department of Health and Human Services’ Office of Inspector General; TRICARE Management Activity; the U.S. Attorney’s Office for the Northern District of Florida and the Justice Department’s Civil Division, Commercial Litigation Branch for the collaboration that resulted in the settlement.
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 $14.8 billion through False Claims Act cases, with more than $10.8 billion of that amount recovered in cases involving fraud against federal health care programs.
The case is captioned United States ex rel. Koch v. Gulf Region Radiation Oncology Centers Inc., et al., No. 3:12-cv-00504 (N.D. Fla.). The claims settled by this agreement are allegations only, and there has been no determination of liability.Five Rutland Residents Indicted for Drug TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that yesterday five residents of the City of Rutland were arrested during an early morning federal-state-local operation and presented in United States District Court for arraignment on indictments charging violations of the federal Controlled Substances Act. The five defendants and their respective charges are:
• Ernest Murray, 51, Conspiracy to Distribute Heroin, Cocaine, and 28 Grams or more of Crack Cocaine; and Distribution of Crack Cocaine (three counts);
• Eric Dixon, 44, Distribution of Crack Cocaine and/or Heroin (four counts);
• Terrence Chenault, 30, Distribution of Crack Cocaine and/or Heroin (three counts);• Andrew Harris, 24, Distribution of Heroin (one count); and
• Morgaine Chuderski, 25, Distribution of Crack Cocaine (two counts).
All five defendants entered pleas of not guilty.
The government moved to detain each of the five pending trial. United States Magistrate Judge John M. Conroy ordered Chenault detained pending trial, and scheduled detention hearings next week with respect to the other four defendants.
United States Attorney Tristram J. Coffin emphasizes that the charges contained in the indictment are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty. If convicted, Murray faces imprisonment for a term between five and forty years on the conspiracy charge, and all defendants face up to twenty years on each of the distribution charges. Any actual sentences in the event of conviction will be determined pursuant to the advisory federal sentencing guidelines and the federal statutory sentencing factors.
United States Attorney Coffin commended the collaborative investigation led by the Vermont Drug Task Force with assistance from the Rutland City Police Department, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Marshals Service. The case is being prosecuted by Assistant U.S. Attorneys Joseph Perella and Craig Nolan.
Federal Jury Convicts Duluth Man for the Sex Trafficking of A ChildRead the Press Release
MINNEAPOLIS—Late yesterday in federal court, a jury found a 33-year-old Duluth man guilty of the sex trafficking a child for approximately seven months last year. Following a four-day trial, the jury convicted Markeace Arque Canty on one count of conspiracy to commit sex trafficking of a child and one count of sex trafficking of a child. The jury acquitted Canty of one count of receipt of child pornography. Canty, also known as Quake, was indicted on May 7, 2013.
According to the indictment and the evidence presented at trial, from at least July 2012 through January 2013, Canty recruited and transported the female victim, who was under the age of 18 at the time, to engage in commercial sex acts, from which Canty benefitted financially. Canty purchased “escort” advertisements on the website known as backpage.com and transported the female victim to locations in Duluth, Minneapolis, Chicago, and elsewhere to meet advertisement responders at motels, where the victim engaged in sexual acts in exchange for money.
The jury heard evdience that on September 12, 2012, law enforcement in Indiana responded to an advertisement listing a phone number registered to Canty, and arrested the female victim after she agreed to perform sex acts in exchange for money. The advertisement in that instance included a phone number registered to Canty.
Evidence was also presented about results of a search of Canty’s iphone, which included texts that the prosecution argued coordinated times and amounts with respondents to the advertisements, as well as texts that the prosecution argued were between Canty and the victim in which she updated him on her illicit activities.
For his crimes, Canty faces a potential maximum penalty of life in prison on each of the sex trafficking counts, with a mandatory minimum penalty of ten years on the sex trafficking of a child count. United States District Judge Joan N. Ericksen will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Federal Bureau of Investigation and the Duluth Police Department, with cooperation from the St. Louis County Attorney’s Office, the Fargo and Grand Forks, North Dakota, police departments, the Grand Forks County Sheriff’s Office in North Dakota, the Eau Claire, Wisconsin, police department, and the Porter County Sheriff’s Office in Indiana. It is being prosecuted by Assistant U.S. Attorneys Thomas Calhoun-Lopez and LeeAnn K. Bell.
Anyone who may have information about any human trafficking matter is encouraged to report that information to the FBI at 763-569-8000. For information about human trafficking, the National Human Trafficking Resource Center’s toll-free hotline (1-888-373-7888) is available to answer calls from anywhere in the country. The U.S. Department of Justice reports that an estimated 14,500 to 17,500 people are trafficked within the U.S. alone each year.
For more information, visit http://www.fbi.gov/about-us/investigate/civilrights/human_trafficking.Federal Jury Convicts Amarillo Anesthesiologist on Tax Evasion ChargesRead the Press Release
Dr. Edgar A. Lockett, Jr. Formerly Resided and Practiced in Mineral Wells and McAllen, Texas
AMARILLO, Texas — After a four-day trial, before U.S. District Judge Mary Lou Robinson, a federal jury in Amarillo, Texas, has convicted Edgar A Lockett, Jr., on all six counts of an indictment charging tax evasion. Lockett faces a maximum statutory sentence of five years in federal prison and a $250,000 fine for each of the counts of conviction. He could also be ordered to pay restitution. Judge Robinson remanded Lockett into the custody of the U.S. Marshal. A sentencing date was not set. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The government presented evidence at trial that Lockett is a self-employed anesthesiologist who currently resides in Amarillo; he formerly resided and practiced in other cities in Texas, including Mineral Wells and McAllen. Lockett most recently billed under the name of Medical & Health Alliance Ministries.
According to evidence the government presented, Lockett has not filed income tax returns since 1999, except for a joint return filed with his spouse for tax year 2007. He owes the United States $1,432,740 in unpaid income taxes for tax years 2000 through 2010.
The government presented further evidence that Lockett concealed from the IRS the nature, extent and location of his assets by placing funds and property in the names of nominee companies and secreting his income in bank accounts that he opened using his deceased father’s name and social security number.
The investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorneys Christy Drake and Vicki Lamberson prosecuted.
Federal Grand Jury in South Bend Returns IndictmentsRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, IN—The United States Attorney's Office announced that a Grand Jury sitting in South Bend, Indiana, returned the following Indictments on September 11, 2013:
Jose Gonzalez, 61, of Milford, Indiana, was charged in a two-count Indictment with one count of possession with intent to distribute a controlled substance and one count of distribution of a controlled substance.These charges were filed as the result of an investigation by the Drug Enforcement Administration.This case has been assigned to and will be prosecuted by Assistant United States Attorney Frank E. Schaffer.
Antonio King , 33, of Elkhart, Indiana, was charged in a one-count Indictment with being a felon in possession of a firearm. Charges were filed as a result of an investigation by the Elkhart Police Department, Elkhart County Sheriff’s Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Vernado Ruben Malone, 41, of Indianapolis, Indiana, was charged in a three-count Indictment with one-count of mail fraud, one-count of wire fraud, and one-count aggravated identity theft.Charges were filed as a result of an investigation by the Federal Bureau of Investigation, St. Joseph County Police, and Niles Police. This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Ryan Dean Smith , 27, of Peru, Indiana, was charged in a one-count Indictment with being a felon in possession of a firearm. Charges were filed as a result of an investigation by the Wabash City Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Quintien Walker, 22, of South Bend, Indiana, was charged in a one-count Indictment with providing false statements during the acquisition of a firearm. Charges were filed as a result of an investigation by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. 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.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Ervin Salgado Osorio Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on September 11, 2013, before U.S. District Judge Sam E. Haddon, ERVIN SALGADO OSORIO, a 32-year-old resident of Toppenish, Washington, was sentenced to a term of:
- Prison: 180 months
- Special Assessment: $200
- Supervised Release: 4 years
OSORIO was sentenced after a federal district court trial in which he was found guilty of conspiracy to distribute methamphetamine and distribution of methamphetamine. Assistant U.S. Attorney Paulette L. Stewart prosecuted the case for the United States.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that OSORIO will likely serve all of the time imposed by the court. In the federal system, OSORIO 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 Missouri River Drug Task Force, the Federal Bureau of Investigation, the Montana Division of Criminal Investigation, the Helena Police Department, the Lewis & Clark Sheriff's Office, and the Drug Enforcement Administration.
East St. Louis Trucking Company Owner ConvictedRead the Press Release
Jury Finds that He Made False Statements on Payroll Certifications
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that after four days of trial in East St. Louis, Illinois, a federal jury returned guilty verdicts on each of ten felony counts charging the making of a false statement against William Patrick “Pat” Clark, 40, of Worden, IL. Clark is the owner, operator, and president of Clark Trucking and Excavation, LLC, which was located at 912 Market Street in East St. Louis, Illinois. Clark faces up to five years in prison on each of the ten false statement counts, a fine of up to $250,000 on each, and a total of 3 years of supervised release after imprisonment. Clark will be sentenced on January 24, 2014.
Evidence at trial showed that Clark unlawfully profited from a scheme where he submitted false paperwork claiming to have paid required prevailing wages to his employees on the federally-funded I-64 Highway project. Clark cheated his employees by paying only about $15 per hour, rather than the required $35.45 per hour (without approved fringe benefits) for truck drivers on the project. Nine of his drivers testified at trial. Clark also signed a sworn affidavit falsely claiming satisfaction of labor laws pertaining to the payment of wages to workers in connection with the I-64 project. Clark Trucking had collected about $1.6 million for its hauling work.
The charges in this case followed a lengthy investigation by the U.S. Department of Labor, Office of Inspector General-Office of LaborRacketeering and Fraud Investigation.
Trial in this matter was handled by Assistant United States Attorney Michael J. Quinley and Special Assistant United States Attorney Stuart Zander.
Eagle Butte Woman Charged with Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Involuntary Manslaughter.
Debra Charging Cloud, age 28, was indicted on May 15, 2013. She appeared before U.S. Magistrate Judge Mark A. Moreno on September 12, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges arose from an alleged incident in April 2013 when Charging Cloud, while under the influence of alcohol, lost control of the vehicle she was driving on a gravel road near Eagle Butte and rolled it, resulting in the death of her passenger.
The charge is merely an accusation and Charging Cloud is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Charging Cloud was remanded to the custody of the U.S. Marshals Service. A trial date has been set for November 5, 2013.
Eagle Butte Man Pleads Guilty to Third Degree BurglaryRead the Press Release
United States Attorney Brendan V. Johnson announced that Brian One Feather, age 31, of Eagle Butte, South Dakota, appeared before U.S. District Judge Roberto A. Lange on September 12, 2013, and pled guilty to the Indictment that charged him with Third Degree Burglary.
The maximum penalty upon conviction is 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund.
The conviction is the result of a June 2012 break-in at the Howard V. Johnson Cultural Heritage Center in Eagle Butte. One Feather and a co-defendant broke into several buildings and took approximately $37,420 worth of personal property belonging to the Cultural Heritage Center.
The investigation was conducted by the Cheyenne River Sioux Law Enforcement Division. The case is being prosecuted by Assistant U.S. Attorney Mikal Hanson.A presentence investigation was ordered, and a sentencing date was set for November 26, 2013.
One Feather was remanded to the custody of the U.S. Marshals Service pending sentencing.
Doctor's Office Manager Sentenced for Health Care Fraud, Identity TheftRead the Press Release
NORFOLK, Va. – Catherine Nell Williams, 53, formerly of Virginia Beach, Va., was sentenced today to 65 months in prison, followed by three years of supervised release, for health care fraud and aggravated identity theft. Co-defendant Michael Inman, Sr., 66, of Virginia Beach, Va., was sentenced on September 12, 2013 to 54 months in prison, followed by three years of supervised release, for health care fraud and aggravated identity theft. Both are responsible for more than $308,000 in restitution.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Gerald M. Scheuer, Resident Agent in Charge for the United States Secret Service-Norfolk Office, made the announcement after sentencing by United States District Judge Arenda L. Wright Allen.
Both Williams and Inman previously pled guilty to the health care and aggravated identity theft charges. Williams pleaded guilty on May 14, 2013 and Inman pleaded guilty on May 31, 2013. According to court documents, Williams was the office manager for a small psychological services business owned by one doctor. One of her responsibilities as office manager was to deposit payment checks made out to the doctor from health care insurers. These insurers were companies such as Optima Health, the military’s TriCare, and Aetna. From August 2008 through February 2012, Williams’s stole approximately 596 checks and gave them to her boyfriend, Michael Inman, Sr. Inman represented himself as the doctor and established a fraudulent business account. He would then forge the doctor’s name on the back and cash them at Money Mart, a local check cashing business. The cash was either deposited into Williams’ bank account or otherwise used by the couple. The checks totaled approximately $308,000.
This case was investigated by U.S. Secret Service. Assistant United States Attorney Randy Stoker prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.District Man Sentenced to 20 Years in Prison for Confrontation Ending with Slaying of 22-Year-Old Stepson-Shooting Followed Argument in Family’s Northeast Washington Home-Read the Press Release
WASHINGTON – Ronald Page, 61, of Washington, D.C., was sentenced today to 20 years in prison for second-degree murder while armed and other charges in a confrontation that ended with the slaying of his adult stepson, U.S. Attorney Ronald C. Machen Jr. announced.
Page was found guilty by a jury in June 2013 following a trial in the Superior Court of the District of Columbia. In addition to the murder charge, the jury found him guilty of charges of assault with a dangerous weapon and firearms offenses. He was sentenced by the Honorable Russell F. Canan.
According to the government’s evidence, on Jan. 5, 2011, shortly after 7 p.m., Page was engaged in verbal argument with his 17-year-old son inside their family home in Northeast Washington. The defendant’s two adult stepsons were present during the argument. At one point, Page attempted to pick up a dining room chair and strike his son. However, one of the stepsons, Nicholas Satcher, 22, stopped him from doing so and told Page that he would not permit him to strike his little brother. Page then left the argument.
Rather than let the argument go, Page retrieved a gun. He pointed it at his son and one of his stepsons, Nicholas Satcher, 22. Then he ordered Nicholas Satcher to leave the room. Nicholas Satcher agreed to leave, but his stepfather followed him and fired the gun, fatally wounding him.
In announcing the sentence, U.S. Attorney Machen commended the work of the officers, detectives and others who investigated the case from the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Mia Beamon, Kelly Blakeney, Kendra Johnson, Sharon Newman and Marian Russell; Victim/Witness Advocate Marcia Rinker; Information Technology Specialist Leif Hickling, and Criminal Investigator Christopher Brophy. He also expressed appreciation to Assistant U.S. Attorney Charles W. Cobb, who investigated the case and secured the indictment. Finally, he thanked Jeffrey Ragsdale, Chief of the office’s Homicide Section, and Assistant U.S. Attorney Lara Worm, who prosecuted the case.
13-317District Man Sentenced to 19 Years in Prison for 2011 Murder in Southeast Washington-Defendant Repeatedly Shot Victim Outside Birthday Party-Read the Press Release
WASHINGTON – Antonio Jones, 21, of Washington, D.C., was sentenced today to 19 years in prison for killing a man who he encountered at a birthday party in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Jones pled guilty in April 2013 in the Superior Court of the District of Columbia to a charge of second-degree murder while armed. The plea, which called for a sentence of 16 to 19 years of incarceration, was contingent upon the approval of the Honorable Herbert B. Dixon Jr., who accepted it and sentenced the defendant today. Upon completion of his prison term, Jones will be placed on five years of supervised release.
According to the government’s evidence, on the night of Oct. 15, 2011, Jones encountered the victim, Davon Gray, 21, at a birthday party in the 2500 block of High Street SE. During the party, Jones socialized with Mr. Gray. However, outside of Mr. Gray’s presence, Jones stated that he had a problem with him. The two men, and others, remained outside even after people went indoors to sing happy birthday. Then, when Mr. Gray was about to leave, Jones stood a few feet across from him in a small group of people in the sidewalk area.
Jones then fired a semi-automatic pistol at Mr. Gray. Mr. Gray held his hands and forearms up in front of his face, turned and ran. Jones continued shooting at Mr. Gray’s back until he slowed and dropped to the ground. Jones than fled the scene on foot. An autopsy determined that Mr. Gray suffered a total of eight gunshot wounds to the body.
Mr. Gray did not have a weapon and had not threatened, assaulted, or otherwise provided Jones in any manner before the shooting. The government’s investigation showed no animosity on the part of Mr. Gray toward Jones. Jones was arrested on Oct. 21, 2011.
In announcing the sentence, U.S. Attorney Machen commended the work of detectives, officers and crime scene technicians who investigated the case from the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Marian Russell and Victim/Witness Advocate Marcia Rinker. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Emily A. Miller, who investigated and prosecuted the matter.
13-315District Man Sentenced to 15 Years in Prison for Fatal Shooting in Northeast Washington-Defendant Shot Victim During Argument in Edgewood Terrace Area -Read the Press Release
WASHINGTON – Decordre Franklin, 25, of Washington, D.C., was sentenced today to 15 years in prison on a charge stemming from a fatal shooting that took place earlier this year in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Franklin pled guilty in June 2013 in the Superior Court of the District of Columbia to voluntary manslaughter while armed in the slaying of Irving Jones. He was sentenced by the Honorable John Ramsey Johnson. Upon completion of his prison term, Franklin will be placed on five years of supervised release.
According to the government’s evidence, in the early morning of March 30, 2013, Franklin was seen in a yard at Edgewood Terrace, within the 600 block of Edgewood Street NE, carrying and playing with a handgun. Afterward, Franklin and Mr. Jones, 33, hung out together with others in the same vicinity. During that time, Mr. Jones and Franklin engaged in a brief physical altercation, which has been described by some witnesses as horseplay. After the altercation ended at approximately 2:10 a.m., Franklin then argued verbally with Mr. Jones.
While yelling at Mr. Jones, Franklin pulled out a handgun and shot him in the chest at close range. He then fled. Mr. Jones collapsed to the ground and died shortly afterward.
In announcing the sentence, U.S. Attorney Machen commended the work of the detectives of the Criminal Investigations Division, crime scene officers, and the Fifth Police District of the Metropolitan Police Department. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Victim Witness Program Specialist Marcia Rinker and Paralegal Specialist Marian Russell. He also praised the efforts of Assistant U.S. Attorney Shana L. Fulton, who prosecuted the case.
13-316Defendant Pleads Guilty to Conspiracy to File False Federal Tax Returns and Identity TheftRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Edna Yvonne Orr Goff, 37, of Thomaston, Georgia, entered a plea of guilty on September 12, 2013, to conspiracy to file false federal tax returns and aggravated identity theft before the Honorable Marc T. Treadwell, United States District Judge.
The Indictment charges Ms. Goff with the use of stolen taxpayer identity information which she used to secure false tax returns from the federal government. Ms. Goff admitted to illegally filing income tax returns using taxpayers’ personal identifying information, which included their names and Social Security numbers, without their consent in order to secure the false tax returns for her own use.
The illegal scheme resulted in a total loss of over $100,000.00.
On the conspiracy charge, Ms. Goff faces a maximum sentence of up to ten (10) years confinement and a $250,000.00 fine. The identity theft charge carries a statutory penalty of a mandatory two (2) years imprisonment consecutive to the conspiracy charge, as well as a $250,000.00 fine.Sentencing is set for December 3, 2013 at 9:30 a.m. before the Honorable Marc T. Treadwell in Macon, Georgia.
“Filing false tax returns and identity theft causes a rippling effect of loss to all law abiding citizens. Those committing these and other crimes will remain a focus of the Department of Justice,” said United States Attorney Michael Moore.
The case was investigated by the Internal Revenue Service, Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Charles L. Calhoun.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Dallas Man Sentenced to 30 Years in Federal Prison on Drug and Firearms ConvictionsRead the Press Release
Defendant Used Home in Residential Area in Dallas to Deal Drugs
DALLAS — Brandon DeShawn Campbell, 32, who was convicted at trial in December 2012 on drug and firearms offenses, was sentenced yesterday afternoon by U.S. District Judge Reed C. O’Connor to 360 months (30 years) in federal prison, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Campbell was convicted on one count of possession with intent to distribute marijuana, one count of possession with intent to distribute methylenedioxy methamphetamine (MDMA or “ecstasy”) and two counts of possessing a firearm in furtherance of, and used during and in relation to, a drug trafficking crime.
Shortly before that trial, his co-defendant, Tyrone Alan Allen, 33, pleaded guilty to possession with intent to distribute cocaine base (crack cocaine) and possession of a firearm in furtherance of a drug trafficking crime. He was sentenced by Judge O’Connor in June 2013 to 96 months in federal prison.
According to evidence presented at trial and documents filed in the case, Campbell and Allen used a home on Teague Street, in a residential area of Dallas, to deal various drugs, including crack, PCP, marijuana and ecstasy. During the execution of a search warrant at that residence on December 12, 2011, these drugs, along with five firearms, were recovered. Campbell was a regular worker at the house and Allen would front Campbell $500 worth of cocaine and $500 worth of marijuana per week and allow Campbell to sell the drugs from the house to keep the “trap” running at all hours of the night.
The investigation was conducted by the Dallas Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Lisa J. Miller and Taly Haffar prosecuted.
Colorado Woman Charged with Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Craig, Colorado, woman has been indicted by a federal grand jury for Failure to Pay Child Support.
Dawn K. Rolla, age 40, was indicted on October 10, 2012, for failing to pay over $17,901.00 in past due child support. She appeared before U.S. Magistrate Judge John E. Simko on September 11, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is two years' imprisonment and/or a $250,000.00 fine, 1 year of supervised release, 1 additional year upon revocation, a $100.00 assessment fee to the Federal Crime Victim’s Fund, and child support restitution amount owing at the time of sentencing.
The charge is merely an accusation and Rolla is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case.
Rolla was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.Colorado Woman Charged with Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Craig, Colorado, woman has been indicted by a federal grand jury for Failure to Pay Child Support.
Dawn K. Rolla, age 40, was indicted on October 10, 2012, for failing to pay over $17,901.00 in past due child support. She appeared before U.S. Magistrate Judge John E. Simko on September 11, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is two years' imprisonment and/or a $250,000.00 fine, 1 year of supervised release, 1 additional year upon revocation, a $100.00 assessment fee to the Federal Crime Victim’s Fund, and child support restitution amount owing at the time of sentencing.
The charge is merely an accusation and Rolla is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case.Rolla was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Coeur D'Alene Man Sentenced for Child Pornography OffenseRead the Press Release
Admitted Possessing More than 3,500 Images
COEUR D’ALENE – Brian Daniel Rowe, 28, of Coeur d’Alene, Idaho, was sentenced yesterday in United States District Court to 33 months in prison followed by 10 years of supervised release for possession of sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Robert H. Whaley also ordered Rowe to pay $1,500 in restitution to the victim. He pleaded guilty to the charge on May 29, 2013.
According to the plea agreement, Rowe admitted that in July 2012, he possessed a computer and a smart phone that contained more than 3,500 sexually explicit images of minors. When interviewed by investigators, Rowe admitted to downloading sexually explicit images of minors for years. Authorities were alerted to Rowe’s illegal behavior earlier in 2012, when they received information that Rowe was making child pornography available to others on an Internet peer-to-peer network. Investigators subsequently executed a search warrant at Rowe’s residence and seized computers and his smart phone.
“Those who victimize children by possessing and distributing images of children being sexually abused will be identified, investigated and prosecuted,” said Olson. “Yesterday’s sentence shows that those who sexually exploit our children will spend significant time in prison. I commend the cooperative federal, state and local law enforcement effort that brought Brian Rowe to justice.”
The case was investigated by the Idaho Attorney General’s Office, Meridian Police Department, Coeur d’Alene Police Department, Nampa Police Department, Kootenai County Prosecutor’s Office, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and United States Secret Service. The agencies are members of the Idaho Internet Crimes Against Children (ICAC) Task Force, a statewide coalition of local, state and federal law enforcement and prosecution agencies focused on apprehending and prosecuting individuals who use the Internet to criminally exploit children. For more information about the Idaho ICAC Task Force and a list of participating agencies, visit www.icacidaho.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Chief Executive Officer of ACI Capital Group Pleads GuiltyRead the Press Release
BROOKLYN, NY – Fredrick Douglas Scott, 29, waived indictment and pleaded guilty earlier today to a two-count information which charged him with engaging in a wire fraud conspiracy to steal over $1 million from investors, and lying to officials from the Securities and Exchange Commission (“SEC”) who were conducting a regulatory examination of ACI Capital Group LLC (“ACI”). Scott was the Chief Executive Officer of ACI, an investment advisor registered with the SEC since July 2011. As set forth in court filings, to implement his scheme, Scott lied to potential investors to induce them to wire funds to one of ACI’s bank accounts, which funds Scott then stole. To date, investigators have identified over $1 million in investor losses caused by Scott. Scott faces up to 20 years’ imprisonment on the fraud charge and five years’ imprisonment on the false statement charge. Scott also faces a fine equal to double the investors’ losses, mandatory restitution of $1,338,770 to the victims, and forfeiture of assets.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
“Today, Fredrick Douglas Scott admitted that he used ACI Capital to steal his clients’ investments and fund his own lavish lifestyle. Rather than the historic figure he presented to the media, Scott stands revealed as a common thief, who lied his way into his investors’ pockets and then continued his web of lies when confronted by the SEC. Scott has now been brought to justice for lying, cheating and stealing for his own personal financial gain,” stated United States Attorney Lynch. “We remain committed to protecting the public by rooting out fraud in the investment industry. I would like to thank the Securities and Exchange Commission, Division of Enforcement in New York, for its assistance in this case. I would also like to recognize the hard work and dedication of our partners at the FBI for their swift action and effective work on this important investigation.”
According to documents filed in this case, ACI was founded by Scott in 2009, and purported to be an investment banking and advisory firm with an office located at 477 Madison Avenue, New York, New York. ACI registered as an investment advisor with the SEC in July
2011 and, according to its most recent regulatory filing, claimed to manage $3.7 billion in assets. While Scott touted his bona fides as an investor to potential clients, including distributing the May 2010 issue of Ebony magazine, which described him as “the youngest African American hedge fund founder in history,” in reality, Scott used ACI to execute his fraudulent scheme, causing over a million dollars in losses.In connection with his scheme, Scott worked with intermediaries or finders to locate potential victims. Once potential victims were identified, Scott promised those victims a high rate of return for providing short-term financing to businesses purportedly associated with ACI. Once victims wired money to ACI, Scott stole the funds for his personal use. Bank records show that Scott used client funds to finance his personal lifestyle, purchasing personal items at establishments including Louis Vuitton, the Apple Store, Starbucks, Fair Bail Bonds, True Religion Jeans, Tao Restaurant, the Hampton Inn SoHo, and Dizzy's Coca-Cola Club, among others. Bank records also show that Scott wired stolen client funds directly into his personal checking account.
This prosecution was the result of efforts 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 is 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. For more information on the task force, visit http://www.StopFraud.gov.The government’s case is being prosecuted by Assistant United States Attorney James P. Loonam.
The Defendant:
FREDRICK DOUGLAS SCOTT
Age: 29Charges Filed in Connection with Disrupted FlightRead the Press Release
Massmio Fiorani, 35, of Italy, was charged by information with a committing the crime of interference with a flight crew, announced United States Attorney Zane David Memeger. According to the information Fiorani interfered with the duties of crew members and attendants on board a U.S. Airways flight from Barcelona to Philadelphia on August 7, 2013.
If convicted the defendant faces a maximum possible sentence of 20 years in prison, and a fine of $250,000. He also may be required to pay full restitution to all victims of his offense.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations, the Federal Bureau of Investigation, the Philadelphia Police Department, and the Tinicum Township Police Department. It is being prosecuted by Assistant United States Attorney Jennifer Arbittier Williams.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Big Spring Man Sentenced to 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — Jacob Ray Albarado, 20, of Big Spring, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 10 years in federal prison and a 15-year term of supervised release, following his guilty plea in June 2013 to one count of possession of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Albarado has been in custody since his arrest in March 2013 on a federal indictment alleging possession and production of child pornography and attempted enticement of a child. According to documents filed in the case, after befriending a minor female (Jane Doe), Albarado communicated with her through the use of his cell phone for more than one year. In late 2012, Jane Doe began a dating relationship with Albarado and ran away from her home to his apartment in Big Spring. Albarado and Jane Doe agreed to produce a video depicting the two of them engaged in sexually explicit conduct. Albarado then held Jane Doe’s cell phone and produced a video of her while she engaged in sexually explicit conduct with Albarado.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Big Spring Police Department. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Beclabito, N.M., Woman Sentenced to Eleven Years in Federal Prison for Second Degree Murder ConvictionRead the Press Release
ALBUQUERQUE – Krisohn Adakai, 21, an enrolled member of the Navajo Nation who resides in Beclabito, N.M., was sentenced yesterday to eleven years in federal prison followed by five years of supervised release for her second degree murder conviction.
Adakai was arrested in July 2012, and charged by criminal complaint with murdering Crystal Tom, a 26-year-old Navajo woman, on July 28, 2012, at Adakai’s home in Beclabito, which is located on the Navajo Reservation. While drinking alcohol together, Adakai and the victim got into a fight during which Adakai repeatedly punched and stabbed the victim, who died as a result of the injuries she sustained. Adakai fell asleep and awoke to find the victim’s unresponsive body. Adakai attempted to conceal her crime by disposing of the body, the alcohol bottles and other evidence of the murder in a remote area on the Navajo Indian Reservation. When confronted by law enforcement authorities on July 30, 2012, Adakai admitted committing the murder and led officers to the victim’s body and other evidence.
On June 13, 2013, Adakai pleaded guilty and admitted that the United States would be able to prove beyond a reasonable doubt that she murdered the victim on July 28, 2013, in San Juan County, within the Navajo Indian Reservation.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Presiliano A. Torrez.
Attorney General’s Native American Issues Subcommittee to Meet in OregonRead the Press Release
VAWA 2013 Implementation, Offender Reentry, White Collar Crime, Juvenile Justice
Among Agenda ItemsBOISE — U.S. Attorneys from the Attorney General’s Advisory Council (AGAC) Native American Issues Subcommittee (NAIS) will meet in Hood River, Ore., next week, Sept. 17-19, 2013. On the agenda are, among other items, efforts to strengthen offender reentry efforts in Indian country, to address juvenile justice and the effects of exposure to violence on American Indian and Alaska Native youth, to defend Indian hunting and fishing rights, to clarify jurisdictional issues on the Columbia River, and to support implementation of the Violence Against Women Reauthorization Act of 2013 (VAWA 2013).
On Sept. 18, U.S. Associate Attorney General Tony West and Assistant Attorney General for the Office of Justice Programs Karol Mason will join the U.S. Attorneys for a special joint session with tribal leaders from Oregon, Washington, and Idaho to be held in Celilo Village, Ore.
“While we are mindful of the great progress that is being made by U.S. Attorneys and tribal justice systems across Indian country, I look forward to exploring with the NAIS and tribal leaders ways that we can strengthen our government-to-government relationships even more, work ever closer with tribal nations, and advance our shared goal of building safe, sustainable, and healthy communities,” said Associate Attorney General West.
“The meeting at Hood River and Celilo Village provides an important opportunity for United States Attorneys, Department of Justice officials and federal agencies with Indian country responsibility to consult with Northwest tribal leaders on a wide range of issues critical to public safety in Indian country,” said Wendy J. Olson, U.S. Attorney for Idaho. “I am pleased that the meeting is taking place at a site of great cultural and historical importance to the Columbia River Tribes, including the Nez Perce.”
Thirty U.S. Attorneys from districts with Indian country or one or more federally recognized tribes serve on the NAIS. The NAIS focuses exclusively on Indian country issues, both criminal and civil, and is responsible for making policy recommendations to the Attorney General regarding public safety and legal issues.
VAWA 2013 was signed into law by President Obama on March 7, 2013. This law contains provisions that significantly improve the safety of native women and allow federal and tribal law enforcement agencies to hold more perpetrators of domestic violence accountable for their crimes. Many of these critical provisions were drawn from the U.S. Department of Justice’s July 2011 proposal for legislation to combat violence against native women. The department is exploring with tribal leaders how the department can help support the new law’s implementation. This law generally takes effect on March 7, 2015, but also authorizes a voluntary pilot project to allow certain tribes to begin prosecuting additional cases sooner.
In June 2009, Attorney General Eric Holder launched a department-wide initiative to enhance public safety in Indian country. Significant progress has been made since then, and the U.S. Attorney’s Offices with Indian country jurisdiction have had a major role in this success.
In May 2013, the Justice Department released its first report to Congress, required under the Tribal Law and Order Act, entitled Indian Country Investigations and Prosecutions (ICIP). The ICIP report, based on data compiled from the case management system used by U.S. Attorney’s Offices (USAOs) with Indian country jurisdiction, shows among other things a 54 percent increase in Indian country criminal prosecutions since 2009.
The information contained in the report shows, among other things, the following:
- The Justice Department’s prioritization of Indian country crime has resulted in a notable increase in commitment to overall law enforcement efforts in Indian country. Caseloads have increased overall from 1,091 cases filed in fiscal year (FY) 2009 to 1,138 in FY 2010 to 1,547 in FY 2011 to 1,677 in FY 2012. This represents a 54 percent increase in the Indian country crime caseload.
- The report shows a new era of partnership between the federal government and American Indian tribes, including an unprecedented level of collaboration with tribal law enforcement. The increase in collaboration and communication strengthens the bond of trust between federal and tribal investigators, prosecutors and other personnel in both federal and tribal criminal justice systems. As a result, tribal communities will be safer places to live, work, and raise families.
In the District of Idaho, prosecutions in Indian country have increased over the last four years. In fiscal year 2013, the U.S. Attorney's Office increased its Indian Country cases filed by 22 percent over fiscal year 2012. In addition, the U.S. Attorney's Office has worked closely with tribal law enforcement to provide training to tribal officers throughout Idaho.
Read more about the Justice Department’s efforts to support implementation of VAWA 2013: http://www.justice.gov/tribal/vawa-tribal.html.
Read the entire ICIP report at www.justice.gov/tribal/tloa-report-cy-2011-2012.pdf.
Read about the Justice Department’s efforts to increase public safety in Indian County at www.justice.gov/tribal/accomplishments.html.
Attorney General's Native American Issues Subcommittee to Meet in OregonRead the Press Release
VAWA 2013 Implementation, Offender Re-entry, White Collar Crime, Juvenile Justice among Agenda ItemsPORTLAND, Ore. — U.S. Attorneys from the Attorney General’s Advisory Council (AGAC) Native American Issues Subcommittee (NAIS) will meet in Hood River, Oregon, next week, Sept. 17-19, 2013. On the agenda are, among other items, efforts to strengthen offender reentry efforts in Indian country, to address juvenile justice and the effects of exposure to violence on American Indian and Alaska Native youth, to defend Indian hunting and fishing rights, to clarify jurisdictional issues on the Columbia River, and to support implementation of the Violence Against Women Reauthorization Act of 2013 (VAWA 2013).
On Sept. 18, U.S. Associate Attorney General Tony West and Assistant Attorney General for the Office of Justice Programs Karol Mason will join the U.S. Attorneys for a special joint session with tribal leaders from Oregon, Washington, and Idaho to be held in Celilo Village, Oregon.
“While we are mindful of the great progress that is being made by U.S. Attorneys and tribal justice systems across Indian country, I look forward to exploring with the NAIS and tribal leaders ways that we can strengthen our government-to-government relationships even more, work ever closer with tribal nations, and advance our shared goal of building safe, sustainable, and healthy communities,” said Associate Attorney General West.
“This meeting will be a significant and historic event in which leaders from the federal government, who have a trust relationship with Indian nations, will meet with tribal leaders from Oregon, Washington, and Idaho to discuss issues ranging from Public Safety to strengthening tribal sovereignty through implementation of the Tribal Law and Order Act and the Violence Against Women Act”, said Amanda Marshall, U.S. Attorney for the District of Oregon. “It is especially fitting that these important discussions will take place at Celilo Village, once the location of Celilo Falls, where native settlements and trading villages existed there in various configurations for 15,000 years. This is a unique and meaningful opportunity for federal officials and Northwest Tribal Leaders to engage with each other on a number of critical topics.”
Thirty U.S. Attorneys from districts with Indian country or one or more federally recognized tribes serve on the NAIS. The NAIS focuses exclusively on Indian country issues, both criminal and civil, and is responsible for making policy recommendations to the Attorney General regarding public safety and legal issues.
VAWA 2013 was signed into law by President Obama on March 7, 2013. This law contains provisions that significantly improve the safety of native women and allow federal and tribal law enforcement agencies to hold more perpetrators of domestic violence accountable for their crimes. Many of these critical provisions were drawn from the U.S. Department of Justice’s July 2011 proposal for legislation to combat violence against native women. The department is exploring with tribal leaders how the department can help support the new law’s implementation. This law generally takes effect on March 7, 2015, but also authorizes a voluntary pilot project to allow certain tribes to begin prosecuting additional cases sooner.
In June 2009, Attorney General Eric Holder launched a department-wide initiative to enhance public safety in Indian country. Significant progress has been made since then, and the U.S. Attorney’s Offices with Indian country jurisdiction have had a major role in this success.
In May 2013, the Justice Department released its first report to Congress, required under the Tribal Law and Order Act, entitled Indian Country Investigations and Prosecutions (ICIP). The ICIP report, based on data compiled from the case management system used by U.S. Attorney’s Offices (USAOs) with Indian country jurisdiction, shows among other things a 54 percent increase in Indian country criminal prosecutions since 2009.
The information contained in the report shows, among other things, the following:
• The Justice Department’s prioritization of Indian country crime has resulted in a notable increase in commitment to overall law enforcement efforts in Indian country. Caseloads have increased overall from 1,091 cases filed in fiscal year (FY) 2009 to 1,138 in FY 2010 to 1,547 in FY 2011 to 1,677 in FY 2012. This represents a 54 percent increase in the Indian country crime caseload.
• The report shows a new era of partnership between the federal government and American Indian tribes, including an unprecedented level of collaboration with tribal law enforcement. The increase in collaboration and communication strengthens the bond of trust between federal and tribal investigators, prosecutors and other personnel in both federal and tribal criminal justice systems. As a result, tribal communities will be safer places to live, work, and raise families.
The number of Indian Country prosecutions in Oregon has increased significantly in the past two years due to partnerships between tribal and federal law enforcement officers. For example, in Warm Springs, a Multi-Disciplinary Team of social workers, tribal prosecutors, tribal detectives, FBI agents, and federal prosecutors meet monthly to review and evaluate ongoing child abuse investigations. Additionally, a lawyer from the Umatilla Indian Reservation was commissioned last year as a Special Assistant United States Attorney to prosecute federal crimes and help coordinate joint tribal-federal investigations of major crimes. Additionally, U.S. Attorney Amanda Marshall travels annually to consult with leaders from all nine of Oregon’s Tribal Nations to listen to their concerns about public safety in their communities. Ms. Marshall also serves on the Attorney General’s Native American Advisory Committee and chairs the Juvenile Justice in Indian Country Working Group.
Read more about the Justice Department’s efforts to support implementation of VAWA 2013: www.justice.gov/tribal/vawa-tribal.html
Read the entire ICIP report: www.justice.gov/tribal/tloa-report-cy-2011-2012.pdf
ead about the Justice Department’s efforts to increase public safety in Indian country at www.justice.gov/tribal/accomplishments.html
Atlantic City, N.J., Tax Preparer Sentenced to Three Years in Prison for Filing Phony Income Tax Returns and Becoming A U.S. Citizen by FraudRead the Press Release
CAMDEN, N.J. – A tax preparer was sentenced today to 36 months in prison for his role in helping to prepare false income tax returns, illegal use of Social Security numbers and unlawfully obtaining United States’ citizenship, U.S. Attorney Paul J. Fishman announced.
Nicolas Gomez-Rua, 54, of Atlantic City, N.J., and Medellin, Colombia, previously pleaded guilty before U.S. District Judge Noel L. Hillman to three counts of a 45-count indictment. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:On Oct. 16, 2012, Gomez-Rua was charged in an indictment with 29 counts of aiding and assisting the preparation of a false income tax return, 10 counts of illegal use of a Social Security number and two counts of unlawful procurement of citizenship or naturalization. Clara Hernandez-Estrada, Gomez-Rua’s wife, was also charged with unlawful procurement of citizenship or naturalization, false statements in an application for a passport, false claim to U.S. citizenship and aggravated identity theft.
Gomez-Rua was arrested on Nov. 29, 2012, by special agents with U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE HSI) at JFK International Airport in New York when he tried to enter the United States from Colombia.
Between 2008 and 2010, Gomez-Rua operated Quick Tax Solution and Rapid Tax Solution in Ventnor City, N.J. He met with clients and obtained information and documents from them, which he used to prepare their U.S. Individual Income Tax Returns (1040 forms). Gomez-Rua admitted that he intentionally included fraudulent items and tax credits, such as false and fraudulent dependents, child tax credits, Earned Income Tax Credit (EITC) claims, fuel tax credits and education credits, in order to obtain larger refunds than those to which his clients were entitled.
Gomez-Rua admitted that he maintained a file of Social Security cards and birth certificates for individuals born in Puerto Rico that was used to add fraudulent dependents on the 1040 forms that were filed with the IRS. Clients paid Gomez-Rua on average $300 to $500 for the use of fraudulent dependents. Gomez-Rua admitted that after preparing the fraudulent returns, he filed the false returns electronically and by U.S. Mail with the IRS.
Gomez-Rua admitted that 729 U.S. individual federal income tax returns containing fraudulent items and credits were prepared by Quick Tax Solution and Rapid Tax Solution on behalf of its clients for tax years 2007 through 2009. Based on the false and fraudulent returns prepared for tax years 2007 through 2009, the United States lost approximately $170,211 in tax revenue.
Gomez-Rua admitted that on March 12, 2009, he filed a 1040 form that he prepared for an individual that contained false deductions, including child and dependent; car expenses; filing status; and exemption amount. According to Gomez-Rua, the dependents were added so that the client would receive a bigger refund; the false return caused a loss of $5,827 to the United States.
Gomez-Rua said he was born in Colombia and in October 1993, he illegally entered the United States. Gomez-Rua said that Clara Hernandez-Estrada, a citizen of Colombia, also illegally entered the United States from Colombia. Sometime after entering the United States, Gomez-Rua settled in Atlantic City.
While in Atlantic City, Gomez-Rua admitted that he purchased the identity of “Wigaberto Santiago,” including his name, date of birth and Social Security number. Santiago was a citizen of the Commonwealth of Puerto Rico. Gomez-Rua then used that identity to work at various locations in Atlantic City.
Gomez-Rua further admitted that he purchased the identity of “Elizabeth Tirado,” including her name, date of birth and Social Security number, for Hernandez-Estrada. Tirado was a citizen of the Commonwealth of Puerto Rico. Gomez-Rua stated that between 1997 and 2008, Hernandez use the Tirado identity to work in Atlantic City.
Gomez-Rua said that on March 30, 1998, he married Hernandez-Estrada under the name of Elizabeth Tirado. He admitted that at various times between 1998 and 2008, he prepared and filed with the IRS income tax returns which included W-2 Forms issued to Hernandez-Estrada under the Tirado identity.
Gomez-Rua admitted that on Feb. 8, 2001, he submitted an application to U.S. Citizenship and Immigration Services for lawful permanent resident status based on his fraudulent marriage to Tirado, a U.S. citizen. On Feb. 13, 2002, U.S. Citizenship and Immigration Services approved his application, granted him permanent resident status in the United States and issued him a green card.
On May 9, 2006, Gomez-Rua submitted an application to U.S. Citizen and Immigration Services seeking to become a citizen of the United States based on his marriage to a U.S. citizen. Gomez-Rua admitted that he signed the application under penalty of perjury and that the application included the following false representations: that he had never used other names; that he had been married to and living with the same U.S. citizen for the last three years, and that his spouse had been a U.S. citizen for the last three years; and that his spouse was Elizabeth Gomez.
On Feb. 23, 2007, Gomez-Rua was interviewed under oath, subject to the penalty of perjury, by an immigration services officer in Mount Laurel, N.J., and repeated the lies in his application. On Feb. 27, 2007, U.S. Citizen and Immigration Services approved Gomez-Rua’s application for citizenship and he was naturalized as a citizen of the United States. Gomez-Rua admitted that had he told the immigration services officer the truth then he would not have been eligible to become a United States citizen.
In addition to the prison term, Judge Hillman sentenced Gomez-Rua to three years of supervised release and ordered him to pay $170,211 in restitution. He also revoked his citizenship.
U.S. Attorney Fishman credited special agents of the IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; special agents of U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; and special agents of the U.S. Department of State’s Diplomatic Security Service (DSS), under the direction of Michael Fogarty, Acting Special Agent in Charge of the DSS New York Field Office, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender, Camden
Armed Drug Dealer Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. - Bruce Edward McDonald, 49, of Mt. Vernon, Alabama, was sentenced in federal court today on charges of conspiracy to possess with intent to distribute crack cocaine, possession of a List I chemical with knowledge it would be used to manufacture a controlled substance, and using, carrying, and possessing a firearm in furtherance of and during and in relation to a drug trafficking felony.
Judge Kristi Dubose imposed a total sentence of 210 months imprisonment, which consisted of 150 months imprisonment on the drug charges, followed by 60 months consecutive imprisonment on the gun charge. Judge Dubose cited the substantial amount of cocaine distributed as a result of McDonald’s activities and his prior criminal history in imposing the sentence. The judge ordered that McDonald serve a supervised release term of 10 years to follow McDonald’s release from imprisonment, and imposed a special mandatory assessment of $300. No fine was imposed.
This case was investigated by the Mobile County Sheriff’s Office, the Alabama Department of Public Safety, the State Line Police Department and the Drug Enforcement Administration. It was prosecuted by Gloria Bedwell in the United States Attorney’s Office in Mobile.
Ankeny Couple Sentenced in Connection with Mortgage FraudRead the Press Release
DES MOINES, IA – United States Attorney Nicholas A. Klinefeldt announced today that an Ankeny couple has been sentenced for their involvement in a mortgage fraud scheme.
On September 13, 2013, United States District Court Chief Judge James E. Gritzner sentenced Jamie Bowers-Danielson, 35, to 41 months of imprisonment for conspiracy to commit bank fraud and bank fraud charges. Bowers-Danielson was also ordered to serve five years of supervised release following her prison term. Chief Judge Gritzner also sentenced Matthew Danielson, 36, to one year and one day of imprisonment for bank fraud. Matthew Danielson will serve five years of supervised release following the completion of his prison term.
In an earlier proceeding, Matthew Danielson admitted he provided false information, including misrepresenting his marital status as single, to a mortgage lender. The purpose of providing the false information was to obtain a mortgage on a home in Ankeny, despite his lack of creditworthiness and to deceive the lender into failing to obtain his wife, Jamie Bowers- Danielson’s, signature on the mortgage. The mortgage was subsequently voided because Bowers-Danielson failed to sign the mortgage documents. Jamie Bowers-Danielson admitted that she submitted false documentation to the loan originator as part of the scheme.
Bowers-Danielson also admitted that she used her loan originator position to enable herself and others to qualify for mortgage loans through fraudulent means. This included submitting false and misleading statements and documents to mortgage lenders and banks for the purpose of obtaining loans for herself and others borrowers for which they should not have qualified.
This case was investigated by the Federal Bureau of Investigation, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Alton Man Sentenced for Firearm OffenseRead the Press Release
Jared R. Henry, 35, of Alton, IL, was sentenced in federal district court in East St. Louis, IL, on September 13, 2013, to 65 months in prison, to be followed by three years supervised release, a $100 special assessment, and fined $500, for unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Facts presented in court revealed that on October 18, 2012, Alton Police officers went to a home in Alton, Illinois, after receiving an anonymous tip about drug activity at the residence. Before arriving at the home, officers were aware of an active warrant for Henry’s arrest. After knocking on the front door, the live-in girlfriend answered, allowing officers to come inside the home. Upon entering, officers observed Henry lying in a bed in a bedroom in direct view of the front door. He was presented the warrant, arrested and removed from the household. Afterwards, consent was given to the officers to search the premises. Five firearms were recovered during the search.
This investigation was conducted the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Alton Police Department. Daniel T. Kapsak, Assistant United States Attorney, prosecuted the case.
Agency Village Man Charged with Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that an Agency Village, South Dakota, man has been indicted by a federal grand jury for Involuntary Manslaughter.
John Henry Sargeant, age 36, was indicted on September 10, 2013. He appeared before U.S. Magistrate Judge William D. Gerdes on September 12, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 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.
The charge is merely an accusation and Sargeant is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Sisseton-Wahpeton Tribal Police Department, Bureau of Indian Affairs Law Enforcement Services, and the Federal Bureau of Investigation. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case.
Sargeant was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Thursday 12 September 2013
“Bad Beard Bandit” Pleads Guilty to Robbing Eight Area BanksRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCOLUMBUS, OHIO – Kenneth J. Horsley, 54, of Columbus pleaded guilty in U.S. District Court to robbing seven Columbus-area banks and one bank in Beavercreek, Ohio between June 2012 and March 2013. Investigators dubbed Horsley the “Bad Beard Bandit” because in all but one robbery he wore a fake beard.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), Franklin County Sheriff Zach Scott, Columbus Police Chief Kim Jacobs, Worthington Police Chief James R. Mosic, Dublin Police Chief Heinz von Eckartsberg and Beavercreek Police Chief Dennis Evers announced the pleas entered today before U.S. District Judge Edmund A. Sargus, Jr.
Horsley pleaded guilty to five counts of bank robbery, each of which is punishable by up to 20- years in prison, and three counts of armed bank robbery, which carries a maximum penalty of 25 years for each count. Judge Sargus will schedule a sentencing for Horsley.
According to court documents, Horsley entered the banks and demanded that the bank employees give him money. In three of the robberies, he brandished a handgun and threatened to shoot anyone who followed him.
Columbus Police officers arrested Horsley on March 15, 2013. He has been in custody since his arrest.
U.S. Attorney Stewart commended the cooperative investigation by federal and local law enforcement agencies, as well as Assistant U.S. Attorneys David M. DeVillers and Laura M. Fulton who are prosecuting the case.Wyoming County Man Sentenced to Federal Prison ForRead the Press Release
Receipt And Distribution Of Child Pornography And Possession Of A Destructive Device
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Wyoming County man was sentenced today by Senior United States District Judge Richard P. Conaboy to serve 60 months in prison on the charges of Receipt and Distribution of Child Pornography and Possession of a Destructive Device.
According to United States Attorney Peter J. Smith, Joseph Keller, age 28, formerly of Tunkhannock, Wyoming County, admitted to using a computer to download and distribute images of child pornography in 2011 and to possessing an unregistered homemade destructive device.
In addition to the prison term, Senior Judge Conaboy also ordered that Keller be supervised by a probation officer for twenty years following his prison sentence.
The investigation was conducted by the Federal Bureau of Investigation, the Pennsylvania State Police, the Wyoming County District Attorney’s Office and the Luzerne County District Attorney’s Office.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
****Woman Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
U.S. Attorney Christopher A. Crofts announced that on September 9, 2013, twenty-eight year old Cecelia Gayle Shakespeare, an enrolled Northern Arapaho Tribal member, was sentenced by Chief United States District Court Judge Nancy Freudenthal to 24 months imprisonment, two years of supervised release, and was ordered to pay $76,598.17 in restitution and a $100.00 special assessment. Ms. Shakespeare previously pled guilty to the offense of assault resulting in serious bodily injury. This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs.
White Bear Lake Felon Pleads Guilty to Possessing A Nine-millimeter PistolRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, a 25-year-old White Bear Lake felon pleaded guilty to possessing a nine-millimeter, semi-automatic pistol. On September 11, 2013, Marquis Leval Cotton pleaded guilty to one count of being a felon in possession of a firearm. Cotton, who was indicted on December 3, 2013, entered his plea before United States District Judge Donovan W. Frank.
In his plea agreement, Cotton admitted that on April 30, 2012, he possessed the pistol, which was recovered by the Minneapolis Police Department.
Because he is a felon, Cotton is prohibited under federal law from possessing a firearm or ammunition at any time. His prior Chisago County convictions include fourth-degree assault (twice in 2010) and criminal damage to property (2010). In 2005, Cotton was convicted in Anoka County for aggravated robbery. Because those convictions constituted crimes of violence, Cotton will now be subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison for anyone with such a record who is subsequently convicted in federal court for being a felon in possession of a firearm or ammunition.Judge Frank will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Minneapolis Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Richard Newberry.
The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than two dozen serious habitual criminals through Project Exile Minneapolis.Two Men Indicted in Robbery at Red Robin Restaurant in TopekaRead the Press Release
TOPEKA, KAN. - Two men have been indicted on federal charges in connection with a robbery at a Red Robin restaurant in Topeka, U.S. Attorney Barry Grissom and Shawnee County District Attorney Chad Taylor announced today.
Derick Renee Crawford, 23, and Travis Jeremy Coffman, 35, both who are in federal custody, are charged with one count of robbery, one count of brandishing a firearm in the robbery, and one count each of unlawful possession of a firearm after a felony conviction.
The indictment alleges that on Aug. 18, 2013, Crawford and Coffman robbed the Red Robin Restaurant at 6230 S.W. Sixth Street in Topeka. According to court documents, Crawford and Coffman are alleged to have held the employees of the restaurant at gunpoint and threatened to kill them.
Grissom said that federal prosecutors are working with the Shawnee County District Attorney, the Topeka Police Department and the FBI on the case as part of a coordinated fight against violent crime.
“By working together, we are sending a message,” Grissom said. “Topeka is not intimidated. We will not be held at gunpoint. We will not live in fear. Armed criminals will be caught. They will be prosecuted. And if they are convicted they will go to prison.”
If convicted, the defendants face a maximum penalty of 20 years in federal prison and a fine up to $250,000 on the robbery count; a penalty of not less than seven years – consecutive to the sentence on the robbery count – and a fine up to $250,000 on the charge of brandishing a firearm; and a maximum penalty of 10 years each on the charge of unlawful possession of a firearm by a convicted felon.
The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.Two Individuals Plead Guilty to Securities Kickback SchemeRead the Press Release
BOSTON – In two related, but separate proceedings, an executive of two publicly-traded companies and an advisor, pleaded guilty today to using kickbacks in order to trigger investments in thinly-traded stocks.
Seijin Ki, 42, of Toronto, Canada pleaded guilty to wire and mail fraud arising out of his participation in a deal that was part of an undercover FBI operation. Ki admitted to paying secret kickbacks to an investment fund representative in exchange for having the investment fund buy stock in a two publicly-traded companies, Lightlake Therapeutics, Inc. and Church & Crawford, Inc. Ki was an executive with both companies. The kickbacks were concealed through the use of sham consulting agreements and other fraudulent documents. What Ki did not know was that the purported investment fund representative was actually an undercover agent.
Kelly Black-White, 52, of Mesa, Ariz. pleaded guilty to conspiracy to commit securities fraud and wire fraud arising out of her role in a similar deal that was part of the same undercover FBI operation. Black-White, the operator of Premier Funding, Inc. and Premier Services, Inc. provides investor and public relations services to publicly-traded companies. Black-White admitted to referring executives of publicly-traded companies to the investment fund representative so that those executives could enter into the kickback arrangement. In exchange, Black-White accepted a portion of the kickbacks paid by the executives.
The pleas followed a year-long investigation focusing on preventing fraud in the micro-cap stock markets. Microcap companies are small publicly-traded companies whose stock often trades at pennies a share. Fraud in the microcap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the Securities and Exchange Commission.
Ki and Black-White are two of 15 defendants charged criminally in this undercover operation. Thirteen of those charged, including Ki and Black-White, pleaded guilty and two were convicted after trial. Two defendants are scheduled for trial in October 2013.
United States District Court Judge William G. Young scheduled sentencing for Ki for Dec. 9, 2013. Black-White is scheduled to be sentenced by US District Court Judge Denise J. Casper on Jan. 29, 2014.
The statutory maximum penalties for the securities fraud conspiracy charges are 25 years in prison, three years of supervised release and a $250,000 fine and the statutory maximum penalties for mail and wire fraud are 20 years in prison, three years of supervised release and a $250,000 fine.
The Securities and Exchange Commission, which conducted a parallel civil investigation alongside the FBI undercover operation, cooperated with criminal authorities in bringing these charges as well as those against the other defendants.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, announced the conviction today. The case is being prosecuted by Assistant U.S. Attorneys Sarah E. Walters, Vassili Thomadakis and Eric Christofferson of Ortiz’s Economic Crimes Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Two Chicago Area Men, Both Charged with Manufacturing Child Pornogrphy, Arrested in Separate, Unrelated Federal CasesRead the Press Release
CHICAGO ― Two Chicago area men have been arrested on separate, unrelated federal charges alleging that they manufactured child pornography, federal law enforcement officials announced today.
In one case, JOHN GABRIEL, 77, of Joliet, was arrested early today at his home without incident by FBI agents. Gabriel was charged with one count of manufacturing child pornography and one count of obstruction of justice in a two-count federal grand jury indictment that was returned yesterday and unsealed upon his arrest. Gabriel pleaded not guilty today before U.S. Magistrate Judge Geraldine Soat Brown in Federal Court in Chicago, and he remains in custody pending a detention hearing at 1:30 p.m. on Monday.
In the second case, MARK BARRETO, 35, of Elmwood Park and formerly of Chicago, was arrested yesterday at his home without incident by U.S. Postal Inspection Service agents. Barreto was charged with two counts of manufacturing child pornography, three counts of transporting child pornography, and one count of possessing child pornography in a six-count federal grand jury indictment that was returned on Tuesday. Barreto pleaded not guilty today before U.S. District Judge Charles Kocoras, and he remain in custody pending a detention hearing next week.
Manufacturing child pornography carries a mandatory minimum sentence of 15 years and a maximum of 30 years in prison and a $250,000 fine.
Gary S. Shapiro, United States Attorney for the Northern District of Illinois, announced the Gabriel case with Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation, and the Barreto case with Tony Gómez, Special Agent-in-Charge of the U.S. Postal Inspection Service in Chicago.
In the Gabriel case, the indictment alleges that he manufactured child pornography with a minor female in July 2012 in Will County. The obstruction count alleges that Gabriel destroyed computer files when FBI agents executed a search warrant his residence on Aug. 14, 2012.
The Gabriel investigation was conducted by the FBI’s Child Exploitation Task Force. The task force is part of a nationwide effort known as the Innocence Lost National Initiative targeting those involved in the commercial sexual exploitation of children in the United States. In Chicago, the CETF is comprised of FBI special agents and representatives from the Chicago Police Department, the Cook County Sheriff's Office, and the Cook County State’s Attorney’s Office.
In the Barreto case, the indictment alleges that he manufactured child pornography with two different minor females, one in February through July 2012, and the other in June and July 2012. It further alleges that he transported images depicting child pornography on dates in April and July 2012, and that he possessed child pornography on his computer when postal inspectors executed a search warrant at his residence in Chicago last October.
The Barreto investigation was conducted by the U.S. Postal Inspection Service, together with the Bolingbrook and Naperville police departments and the Will County State’s Attorney’s Office.
In addition to the penalties for manufacturing child pornography, if convicted, Gabriel also faces a maximum sentence of 20 years in prison for obstruction of justice. Barreto, if convicted, also faces a mandatory minimum of five years and a maximum of 20 years in prison on each count of transporting child pornography, and possessing child pornography carries a maximum of 10 years in prison. Both defendants also face a maximum fine of $250,000 on each count. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
An indictment contains only charges and is 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.
Barreto Indictment
Gabriel IndictmentTwo Akron Men Indicted on Methamphetamine ChargesRead the Press Release
Two Akron men were indicted on charges of possession with intent to distribute more than two kilograms of methamphetamine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Robert E. Long, age 34, and Demarcus Golden, age 23, were also indicted on charges of use of the mail in interstate commerce to transport the drugs from Washington to Ohio via the United States Postal Service.
The defendants, while in another state, mailed an Express Mail box to themselves to an address in the Akron, Ohio area which contained approximately 10,196 pills of methamphetamine.
The indictment resulted from an investigation conducted by the United States Postal Inspectors from Cleveland and Tacoma, Washington, the Department of Homeland Security, the Cleveland Police Department and Akron Police Department. The case is being prosecuted by Assistant United States Attorney Teresa Dirksen.
If convicted, their sentence will be determined by the Court after review of factors unique to this case, including prior criminal records, if any, their role in the offenses and the unique characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.Twice Convicted Child Rapist Pleads Guilty to Online Distribution of Child PornographyRead the Press Release
WILMINGTON, Del. – Sean Lawrence, age 40, of Kansas City, Missouri, pled guilty today to Transportation of Child Pornography, in violation of federal law. Charles M. Oberly, III, United States Attorney for the District of Delaware, announced the guilty plea following a hearing in the United States District Court for the District of Delaware.
Lawrence was previously convicted in Missouri in 1995 and 2005 of sodomizing two young boys. He was sentenced to five years in prison for each offense and was required to register as a sex offender upon his release.
As a result of his prior convictions for child sex offenses, Lawrence faces enhanced sentencing penalties under federal law, including a mandatory minimum sentence of fifteen years, and a maximum sentence of forty years, in prison. Lawrence also faces a term of supervised release following his prison sentence of five years to life, and will be required to register as a sex offender in any U.S. jurisdiction in which he lives, works, or attends school. Lawrence will be sentenced on January 6, 2014 by United States District Judge Sue L. Robinson.
According to statements made and documents filed in court, Lawrence came to the attention of a Wilmington-based Homeland Security Investigations special agent in February 2013, during an online undercover investigation into non-public, peer-to-peer networks being used to distribute child pornography. Lawrence provided the undercover agent, who was posing as a man interested in trading images of child pornography, with access to his non-public, peer-to-peer network. The undercover agent then downloaded 11 video files of child pornography from Lawrence’s computer.
During the investigation, law enforcement agents determined that Lawrence was distributing child pornography from various locations via a wireless mobile device. On February 14, 2013, Special Agents of the Wilmington, Delaware and Philadelphia HSI offices partnered with Kansas City-based agents to apprehend Lawrence while he was actually transmitting and receiving images of child pornography via the Internet. The local agents conducted simultaneous online sessions with Lawrence in an effort to geo-locate him. Data associated with those online sessions indicated that Lawrence was then accessing the Internet from the second floor of Metropolitan Community College Library, in Kansas City, Missouri. The local agents quickly relayed this information to the Kansas City-based HSI Special Agents, who then found Lawrence in the back corner of the campus library. Lawrence had an open laptop in front of him and was downloading a video of child pornography set to music when he was apprehended.
A subsequent forensic examination of computer equipment seized from Lawrence in the library and at his residence resulted in the discovery of over 10,000 still images and 200 videos of child pornography that Lawrence had downloaded to those devices. The depictions of child pornography featured mostly prepubescent boys engaged in sexual acts with adult males or other boys. A number of the files depict violence, sadistic or masochistic abuse or bondage.
During an interview with law enforcement agents, Lawrence stated that he had traded hundreds of child pornography images and videos via file sharing programs and email each day since 1999, except during his time in prison. Defendant estimated that he has traded 100-1,000 images of child pornography a day since 1998-1999. He further estimated that he traded child pornography files with an average of about 1-3 people per day via email. Lawrence also told the agents that he went to the Metropolitan Community College campus approximately 3-4 days a week to use the wireless Internet to receive and distribute child pornography. Lawrence said that he also utilized the wireless networks at the public library, and in McDonalds and Burger King locations to distribute and receive child pornography.
This case is being investigated by the Department of Homeland Security, Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Edward J. McAndrew.
Three More Defendants Sentenced in Sadomasochistic Sex Trafficking ConspiracyRead the Press Release
Human Trafficking Rescue Project
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three more defendants were sentenced in federal court today for their roles in the sex trafficking of a young woman who was coerced into being a sex slave for several years while she was tortured in a trailer home located in a wooded area in Lebanon.
Michael Stokes, also known as “The Rodent,” 65, of Lebanon, Mo., and James Noel, 47, of Springfield, Mo., were each sentenced to five years in federal prison without parole in separate hearings before U.S. District Judge Dean Whipple. Marilyn Bagley, 48, of Lebanon, was sentenced to five years of probation.
The court also ordered that $738,250 in total restitution must be paid to the victim. Each defendant is individually liable for $123,041, or one-sixth of the total amount.
On Dec. 6, 2012, Marilyn Bagley pleaded guilty to her role in the conspiracy to commit sex trafficking by force, fraud or coercion. Marilyn Bagley admittedly knew that other individuals came to the residence to engage in sexual conduct and sadistic acts on the female victim (identified in court documents as FV). Over a six-year period, FV endured sadistic acts of torture, many of which were photographed and videotaped. FV would be punished if she did not do as instructed. Several individuals provided bondage pornography, meat, cigarettes, and cash, among other items, in exchange for the sessions involving sexual conduct and sadistic acts on FV.
The government stated in court at the time of her guilty plea that Marilyn Bagley is considered in a separate category from the other defendants in this case because she was a victim of extensive physical and emotional abuse by her husband, co-defendant Edward Bagley, Sr., also known as “Master Ed,” 46, for over 25 years prior to her criminal conduct and participation in the conspiracy. Her participation in the criminal conduct resulted in the abuse being redirected away from her and to the victim.
Stokes pleaded guilty on Jan. 5, 2012, to participating in the sex trafficking conspiracy. Stokes became familiar with FV in 2006 when he received pictures of her over the Internet in which she was naked with whip marks over her body. Stokes was told that the victim was a slave for “life” who was tortured for hours at a time and was required to do “everything and anything” she was told. After a few weeks of chatting online, Edward Bagley brought the victim to Stokes’ house so she could do a “demo” for him. When they arrived at Stokes’ residence, bringing a duffle bag of torture devices with them, FV was instructed to “put on a show for us.” FV was naked, wearing only dog collars and ankle collars with locks. Stokes was asked whether he wanted to have sex with her. Stokes said “yes” and he had sex with FV.
Stokes was stunned that “someone had that much control over someone” and “had never seen anything like it.”
Stokes began visiting the Bagley residence where FV was being held. During his first visit, he was shown a photo of FV’s vaginal opening sewn shut and told this was done to demonstrate “what was expected of her.” FV was present for these statements and remained silent. FV never talked back or spoke up. FV never offered herself to Stokes and only acted on command.
Stokes visited the Bagley residence eight to 12 times. During these visits, he would receive sexual acts or be allowed to watch or participate in torturing FV. When he visited he brought steaks, hamburgers, jackets, personalized playing cards, lighters, cigarettes, and cash. Among other things, he witnessed FV being tortured with a crank phone, with electricity shot through devices clamped to her vaginal and anal openings.
Stokes helped promote FV at the strip clubs. Stokes took photos of FV around to the clubs to promote her there. Stokes gave $1,000 so that FV could be taken for a sexual bondage photo shoot in California for Taboo magazine. Stokes then took a copy of the magazine to promote her at the clubs. The photos in Taboo magazine were extremely mild and did not depict any of the cruel sessions Stokes had witnessed at the residence.
In 2009, Stokes was warned that there was an FBI investigation involving his conduct with FV. Stokes went on his computer and deleted hundreds of photos, his contacts with other females online, pictures of FV that he saved, and destroyed his copies of Taboo magazine and the sexual devices that he had acquired.Noel pleaded guilty on Feb. 24, 2011, to participating in the sex trafficking conspiracy. Noel admitted that he was one of the customers who sexually abused and tortured FV. Noel watched the victim being tortured and sometimes operated torture devices himself beginning in 2006, when she was approximately 20 years old. For example, Noel knew that FV hated being electrocuted with a crank phone (which was wired inside FV=s vaginal and anal openings and to her toes), which he described as Aextremely painful,@ but he used it on her anyway.
Three defendants in this case were sentenced on Wednesday, Sept. 11, 2013.
Edward Bagley and Bradley Cook, also known as APutHer2GoodUse,@ 34, of Kirkwood, Mo., were each sentenced to 20 years in federal prison without parole. Dennis Henry, 53, of Wheatland, Mo., was sentenced to 10 years in federal prison without parole. As part of the agreement obtained by the government, Cook was required to pay $123,041 in restitution at the time of his sentencing. Edward Bagley and Henry are individually liable for $123,041 in restitution. Their wages will be garnished while in custody, and after they are released, until they have paid their restitution in full.
Following their prison terms, Bagley, Cook and Henry will be on supervised release for the rest of their lives. Among the terms of supervision ordered by the court, they must adhere to a 10:30 p.m. curfew and are prohibited from any contact with the victim, the government’s attorneys and the agents involved in the case.
This case marked the first time nationwide that the customers, or “Johns,” have been convicted under the Trafficking Victims Protection Act in a sex trafficking case in which the victim was an adult. This is also the first human trafficking conviction in which the customers were prosecuted in a case that involved an actual victim rather than an undercover sting operation.
On Jan. 15, 2013, Bagley pleaded guilty to enticing a minor into illegal sexual conduct and prostitution. Bagley met FV in 2002, when she was 16 years old and dating his teenage son. FV visited his trailer residence in Lebanon on numerous occasions. During FV’s visits to Bagley’s residence, he showed her images and videos of pornography on the Internet and downloaded from the Internet, including images and videos of bondage and sadomasochistic conduct. Bagley admitted that he provided FV with controlled substances. He taught her about bondage and sadomasochistic activities. His wife, co-defendant Marilyn Bagley, 48, modeled stripper and bondage clothing for FV. The Bagleys told FV that she would love being a “slave” for him. Bagley began a sexual relationship with FV prior to her seventeenth birthday.
FV viewed Edward Bagley as her boyfriend and moved into the Bagleys’ residence in 2003. They provided FV her own room and clothes, and promised her a great life.
Over the course of the next six years, Edward Bagley executed sadistic acts of torture on FV, including sewing her vagina closed, whipping and flogging her body, penetrating her breasts with needles and skewers, suffocating her with plastic bags, strangling her with rope, locking her in a dog cage, and electrocuting FV’s sexual organs with devices which produced electrical voltage. Edward Bagley photographed and videotaped many of the acts he performed on her. FV would be punished if she did not do as instructed.
Cook pleaded guilty on Dec. 20, 2011, to participating in a conspiracy to commit sex trafficking by force, fraud or coercion. From 2006 to 2009, Cook watched the victim being sexually abused and tortured in live online sessions and as depicted in photos and videos that he downloaded from the Internet. Cook admitted that he traveled to Lebanon on multiple occasions during that time to engage in sessions of sexual acts and torture with the victim. In exchange, Cook paid the victim=s Amaster@ for these sessions with such items as computer hard drives that contained images and videos of bondage, domination, sadism and masochism, which he had downloaded from the Internet.
Cook also admitted he was aware of other men who engaged in sexual acts and torture with the victim. He witnessed the victim being whipped and locked in a dog cage, as well as being tied up and shocked with multiple electrical devices. Cook described the abuse suffered by the victim as the Amost extreme@ he had ever seen.
Henry, formerly the postmaster of Nevada, Mo., pleaded guilty on March 24, 2011, to participating in the conspiracy. Henry also pleaded guilty to transporting the victim across state lines for sexual activity.
Henry admitted that he engaged in sex with the victim, and participated in torture sessions with FV that would last for hours. Henry saw pictures of FV=s vagina sewn shut, which he was told was a form of punishment. Henry also admitted that he visited FV at a Lebanon strip club where she was forced to work.
This case was prosecuted by Assistant U.S. Attorneys Cynthia L. Cordes, Paul Becker and John Cowles with assistance from the Department of Justice Civil Rights Division's Human Trafficking Prosecution Unit. It was investigated by the FBI in conjunction with the Human Trafficking Rescue Project.
Three Men Indicted for Conspiracy to Mail 3,000 Pills of Oxycodone from California to OhioRead the Press Release
Three men were indicted for their roles in a conspiracy to distribute nearly 3,000 pills of Oxycodone, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are: Myron D. Black, age 44, of Mansfield, Ohio; Chauncey L. Ransom, age 49, of Inglewood, California, and Victor A. Hageman, age 45, of Euclid, Ohio.
“Prescription pill abuse is a major problem in Ohio,” Dettelbach said. “Whether it is a doctor selling prescriptions or people using the mail to ship pills across the country, we are committed to stopping the flow of illegal drugs.”
Ransom obtained a total of 2,989 pills (30 mg each) of Oxycodone, a Schedule II controlled substance, in California and mailed them to Black, Hageman and other in Ohio via the United States Postal Service Express Mail, according to the indictment.
Ransom often packaged the pills in video movie disc covers, plastic bubble mailing envelopes and other packaging to conceal the contents, according to the indictment.
Black and Hageman made arrangements with other individuals to receive the package from Ransom in return for money, usually $200, according to the indictment.
The conspiracy took place between at least August 2012 through April 2013, with Ransom mailing packages to addresses in Lakewood, Seven Hills, Akron and Mansfield containing shipments of between 200 and 600 pills, according to the indictment.
The indictment results from an investigation conducted by the United States Postal Inspection Service, in Cleveland, with the assistance of Metro-Richland County (Ohio) Enforcement Unit, and the Akron, Police Department, as well as the United States Postal Inspection Service, in Los Angeles, and the Los Angeles Police Department. The case is being prosecuted by Assistant United States Attorney Christian H. Stickan.
If convicted, the defendant's sentence will be determined by the court after review of factors unique to this case, including the defendant's prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Three Las Vegans Charged with Telemarketing Fraud in Association with Promising Grants to Small Business OwnersRead the Press Release
LAS VEGAS, Nev. – Three Las Vegas residents have been indicted by the federal grand jury for allegedly defrauding almost 400 persons of over $5 million in connection with a grant funding telemarketing scheme, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Gregory Villegas, aka Ray Matsui, aka Ray Mathis, 34; Christine M. Gagnon, aka Lisa Foster, aka Crystal Waters, 33; and Mickey Gines, 40, all of Las Vegas, are each charged with one count of conspiracy to commit wire fraud in connection with telemarketing, and 31 counts of wire fraud. They were arrested in Las Vegas this morning and are scheduled to make initial appearances in court today before United States Magistrate Judge George Foley, Jr. at 2:30 p.m.According to the court records, Villegas owned and controlled Executive Solutions, Inc. in addition to Business Funding Services Enterprises; BFS Enterprises; Global Business Funding, Inc.; The Grant People; USA Grant Team; USA Grants; National Financial Advisors; US Filing Services, Inc.; US Filings Service, Inc.; USFS, Inc.; Echoe, Inc.; Worldwide Asset Management; Corporate Capital Team; Business Acumen; and Kuff Ltd.
These companies were allegedly involved in the business of grant funding. Gagnon and Gines were officers in some of the companies and were also listed as employees in other grant funding companies that they or Villegas owned or controlled. Beginning in about March 2008 and continuing through May 2, 2012, Villegas, Gagnon, Gines and others engaged in a telemarketing scheme to defraud persons of their money, including at least 10 victims over the age of 55. The defendants employed sales staff to place telemarketing calls and operate websites for the purpose of soliciting fees from small business owners who wished to obtain private and government grants. The defendants and staff allegedly used high pressure sales and lulling tactics and made many types of false statements to customers concerning their ability to deliver grants, when the defendants knew that their true intent was to obtain as much money as possible from the customers, rather than assist them in obtaining grants, and knew that none of their customers had ever received a grant.
In order to avoid lawsuits and detection by law enforcement, the defendants operated their companies under multiple and evolving names and directed their staff to use aliases which they routinely changed in communications with the customers. When the grants failed to materialize, the defendants and staff falsely represented to customers that they were only collecting money for other companies or that delays in funding were caused by circumstances beyond the defendants’ control. In some instances, the defendants agreed to provide partial refunds to customers and fraudulently required the customers to sign release forms stating that the defendants had not engaged in any wrongdoing.
The indictment alleges that through this scheme, the defendants victimized approximately 390 persons throughout the United States, 10 of whom were over the age of 55, and obtained approximately $5.2 million in fraudulently obtained funds.
If convicted, they face up to 30 years in prison on the conspiracy count, plus up to 10 consecutive years for telemarketing to 10 or more persons over the age of 55, and up to 30 years in prison on each wire fraud count, as well as fines of up to $250,000 per count.The case was investigated by the United States Secret Service and FBI and is being prosecuted by Assistant U.S. Attorney Christina M. Brown.
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.
An indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to fair trials at which the government has the burden of proving guilt beyond a reasonable doubt.St. Joseph Women Sentenced for $5 Million Conspiracy to Provide Thousands of Identity Documents to Illegal AliensRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two St. Joseph, Mo., women along with four co-defendants, have been sentenced in federal court for their roles in a more than $5 million conspiracy that utilized the Missouri Department of Revenue license office in St. Joseph to provide more than 3,500 fraudulent identity documents to illegal aliens across the United States.
Sherri E. Gutierrez, 46, of St. Joseph, and Brenda De La Cruz, 33, of San Antonio, Texas, were sentenced on Wednesday, Sept. 11, 2013, in separate hearings before U.S. District Judge Gary A. Fenner. Gutierrez was sentenced to five years and five months in federal prison without parole. De La Cruz was sentenced to four years in federal prison without parole. Gutierrez’s daughter, Shayna R Vanvacter, 27, of St. Joseph, was sentenced on Tuesday, Sept. 10, 2013, to two years in federal prison without parole.
Three additional co-defendants were also sentenced on Tuesday, Sept 10, 2013. Elder Enrique Ordonez-Chanas, also known as “Flaco,” 32, a citizen of Guatemala who is unlawfully in the United States and resided in Carthage, was sentenced to five years and one month in federal prison without parole. Luis Adalberto Felipe-Lopez, 30, a citizen of Guatemala who was unlawfully in the United States and resided in Mt. Olive, N.C., was sentenced to four years in federal prison without parole. Rafael Hernandez-Ortiz, also known as “Hugo,” 32, a citizen of Mexico who was unlawfully present in the United States and resided in Owatonna, Minn., was sentenced to two years in federal prison without parole.
It is estimated that more than 3,500 licenses were issued to illegal aliens by the Department of Revenue license office in St. Joseph. Conspirators helped illegal aliens obtain birth certificates and Social Security cards in the names of others. These identity documents were used to obtain either a Missouri driver’s or non-driver’s license at the St. Joseph license office. The state licenses could then be used by the illegal aliens to remain unlawfully in the United States, to unlawfully obtain employment and for other unlawful purposes.
The illegal aliens were usually charged between $1,500 and $1,600 for the document sets and the Missouri driver’s and non-driver’s licenses. It is estimated that more than $5,250,000 in gross proceeds was paid by illegal aliens to members of this conspiracy.
Sixteen defendants have been sentenced and two defendants have pleaded guilty and await sentencing.
Gutierrez pleaded guilty on April 10, 2013 to being a leader or manager of the conspiracy to transport illegal aliens, to unlawfully produce identification documents, to unlawfully transfer another person’s identification and to commit Social Security fraud from November 2009 to January 2012. She also pleaded guilty to aggravated identity theft. De La Cruz also pleaded guilty to her role in the conspiracy and to aggravated identity theft.
Gutierrez’s sister, Deborah J. Flores, 47, was sentenced on June 26, 2013, to three years and four months in federal prison without parole. On Oct. 18, 2012 Flores pleaded guilty to her role in the conspiracy and to aggravated identity theft.
Flores’s children, Jessica M. Gonzalez, 22, Sara M. Gonzalez, 21, Christina Michelle Gonzalez, 24, and Stephen E. Vanvacter, 25, along with co-defendant Christopher B. Escobar, 23, all of St. Joseph, have also pleaded guilty to their roles in the conspiracy.
Gutierrez, Shayna Vanvacter, Flores, her children and Escobar all admitted that they accompanied illegal aliens to the St. Joseph license office, under the guise of being translators, in order to assist them with obtaining a Missouri driver’s or non-driver’s license. They also admitted that they instructed and assisted the illegal aliens to practice memorizing the information on the birth certificates and Social Security cards and to practice signing the name on those documents so that the signatures would be similar. They also assisted the illegal aliens to prepare for potential questions from the license office employees. They also assisted the illegal aliens who did not live in Missouri by providing them with a Missouri residential address to use in order to obtain the Missouri driver’s or non-driver’s license.
Christina Gonzalez was sentenced to 32 months in federal prison without parole and ordered to pay $150,000 in restitution. Sara Gonzalez was sentenced to 15 months in federal prison without parole. Jessica Gonzalez was sentenced to three years of probation. Stephen Vanvacter was sentenced to five years of probation.
Ordonez-Chanas pleaded guilty on April 8, 2013 to his role in the conspiracy and to aggravated identity theft. Ordonez-Chanas was an organizer and leader of the conspiracy. Ordonez-Chanas admitted that he assisted illegal aliens in obtaining birth certificates and Social Security cards in the names of others. Ordonez-Chanas requested document sets (of a specific age range for either a male or a female that corresponded with the illegal alien who was the customer) from co-defendants De la Cruz and Julio Cesar Llanas-Rodriguez, 38, and Martin Alejandro Llanas-Rodriguez, both of San Antonio, Texas. Ordonez-Chanas then mailed the documents sets to Gutierrez and others.
Felipe-Lopez pleaded guilty to his role in the conspiracy and to aggravated identity theft. Felipe-Lopez admitted that he transported illegal aliens between St. Joseph and North Carolina. Felipe-Lopez admitted that he assisted illegal aliens in obtaining birth certificates and Social Security cards in the names of others. These identity documents were used to obtain either a Missouri driver’s or non-driver’s license at the St. Joseph license office.
Hernandez-Ortiz pleaded guilty to his role in the conspiracy on April 29, 2013. Hernandez-Ortiz admitted that he transported illegal aliens from Minnesota to the St. Joseph license office.
Julio and Martin Llanas-Rodriguez were each sentenced to five years and one month in federal prison without parole. They both pleaded guilty to participating in the conspiracy and to aggravated identity theft. Along with De La Cruz, their roles in the conspiracy were to obtain state-issued birth certificates, usually from the state of Texas, which they purchased from willing individuals. They also obtained Social Security cards in the names of the individuals on the birth certificates, so they would have a matching document set. They mailed the documents to Gutierrez and others.
Nelson Dariseo Bautista-Orozco, 27, a citizen of Guatemala who is unlawfully in the United States and resided in Carthage, was sentenced to three years and six months in federal prison without parole.
Ranfe Adaias Hernandez-Flores, also known as “Miguel,” 24, also a citizen of Guatemala who is unlawfully in the United States and resided in Carthage, was sentenced to two years in federal prison without parole.
Jon L. Grippando, 25, of Atkins, Ark., was sentenced to eight months in federal prison without parole.
Melissa L. Scallions, 27, of Hazelwood, Mo., has pleaded guilty to her role in the conspiracy. She admitted that she also accompanied illegal aliens into the St. Joseph license office, under the guise of being a translator, in order to assist them with obtaining a Missouri driver’s or non-driver’s license. Scallions and Escobar await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations, the Buchanan County, Mo., Sheriff’s Department, the St. Joseph, Mo., Police Department, the Platte County, Mo., Sheriff’s Department, the Missouri State Highway Patrol, the Missouri Department of Revenue Investigation Bureau, the Social Security Administration Office of Inspector General, the U.S. Postal Inspection Service and the Department of State’s Diplomatic Security Service.St. George Man Charged with Wire Fraud, Money Laundering in Real Estate Investment Fraud SchemeRead the Press Release
Indictment Alleges He Solicited About $10 million From More Than 50 IndividualsSALT LAKE CITY – A federal grand jury returned a 32-count indictment Wednesday afternoon charging Edmund Edward Wilson, age 69, of St. George, Utah, with wire fraud, conspiracy to commit wire fraud, and money laundering in connection with what the indictment alleges was a real estate investment scheme he ran through his company, Fountain Group of Companies of Utah, Inc.
According to the indictment, Wilson was president, owner, and director of Fountain Group, with its principal place of business in St. George. Through Fountain Group, Wilson purported to provide financing for real estate development projects throughout the United States. He conducted business by, among other things, entering into contracts with individuals he called “investors” who had real estate development projects and having those investors wire money into his Fountain Group account.
The indictment alleges that beginning in 2005 and continuing to around 2012, Wilson falsely represented to investors that his company could provide financing for real estate development projects for an advance fee of either $80,000 or $150,000 through an investment program he called “Substitution of Collateral Program.” The indictment alleges Wilson made misrepresentations to investors about the program., including that Wilson could obtain financing for their project within 15 to 180 days and that the program was so profitable that Fountain Group could provide development project financing that would be entirely “forgiven” within 18 months, although the borrower would then owe income taxes on the forgiven debt. In return, these investors would give Wilson a stake in the development project.
According to the indictment, when investors called Wilson to ask why they had not received funding for their projects within the time promised, Wilson falsely represented to investors that he needed additional money to cover various unforeseen fees and expenses, and that once these costs were paid, funds would be released for the development projects.
The indictment alleges Wilson failed to disclose to investors that he never provided any funding for any development project through his Substitution of Collateral Program and that he used a significant portion of the advanced fees for his personal benefit.
Later in the scheme, Wilson falsely represented to investors who had already invested in his program and to new potential investors that he could arrange financing of their development projects through his wealthy partner in Asia known as “the General.” In exchange for an investment of $80,000 to $150,000, investors would receive a forgivable loan for their real estate development project. The loan would come from “the General” who had access to millions of dollars in U.S. currency set aside for investment projects in the United States.
According to the indictment, Wilson represented that he and “the General” had partnered with the Department of Justice and the FBI to bring the U.S. currency from China back into the United States as a type of “unofficial stimulus package.” To release the funds back into the United States, certain taxes and fees had to be paid in China where the funds were being held.
Again, Wilson failed to disclose to investors that he had never provided any funding for any development project through his foreign investment program and that he used a significant portion of the advanced fees for his personal benefit.
The indictment alleges 19 counts of wire fraud and attempt and conspiracy to commit wire fraud and 13 counts of money laundering. The potential maximum penalty for each wire fraud count is 20 years in prison. Each count of money laundering carries a potential penalty of 10 years in prison.
A summons will be issued to Wilson to appear in federal court in Salt Lake City on Oct. 16, 2013, at 10 a.m. before U.S. Magistrate Judge Evelyn J. Furse.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The case is being investigated by special agents of the FBI and IRS Criminal Investigations. It is being prosecuted by the U.S. Attorney’s Office in Utah.
(Follow the U.S. Attorney’s Office on Twitter @DUTnews)Spokane Man Sentenced to Fifteen Years in Federal Prison for Uploading A Child Pornography Video to PhotobucketRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Eric Kyle Nevue, age 27, of Spokane, Washington, was sentenced today after having previously pleaded guilty on June 10, 2013 to Distribution of Child Pornography. Chief United States District Court Judge Rosanna Malouf Peterson sentenced Nevue to a fifteen year term of imprisonment, to be followed by a life term of court supervision after he is released from Federal prison. Nevue has a prior 2008 Washington State conviction for Dealing in Depictions of Minors Engaged in Sexually Explicit Conduct.
According to information disclosed during the court proceedings, in September of 2012, Photobucket.com reported to the National Center for Missing and Exploited Children (NCMEC) that someone had uploaded a video of child pornography to their Photobucket.com account. NEMEC referred the information to the Internet Crimes Against Task Force in Washington State. As a result, the Spokane Police Department and the United States Secret Service conducted an investigation and executed a search warrant on November 8, 2012 at Nevue's residence in Spokane, Washington and located images of child pornography on Nevue's cellular telephone .
Michael C. Ormsby stated: "Prosecuting offenders with prior child pornography convictions is a priority of the United Sates Attorney's Office for the Eastern District of Washington. Such cases will be investigated and prosecuted aggressively. This Office will seek appropriate punishment for child pornography crimes."
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative ("PSC") has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue child victims;
- Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted the United States Secret Service and the Spokane Police Department. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
CR-13-0027-RMP
Shrewsbury Woman Indicted for Filing False Tax ReturnsRead the Press Release
BOSTON – In an indictment unsealed today, a Shrewsbury woman has been charged with underreporting income from her federal tax returns.
Roberta I. Crudale Blute, 55, was indicted on two counts of filing false tax returns for tax years 2007 and 2008.
The indictment alleges that Blute omitted from tax returns hundreds of thousands of dollars in income that she earned from numerous employers for tax years 2007 and 2008. Specifically, it is alleged Blute knowingly failed to report income she earned from four companies in 2007 and five companies in 2008.
The statutory maximum penalty is three years in prison, one year of supervised release and a $250,000 fine. Blute is scheduled to have her initial appearance today at 2 pm in Worcester.United States Attorney Carmen M. Ortiz; John G. Collins, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Vincent Lisi, Special Agent in Charge of the FBI’s Boston Field Division; and Susan J. Waddell, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General, Office of Investigations, made the announcement.
This case is being prosecuted by Assistant U.S. Attorneys Amanda P.M. Strachan and Miranda Hooker of Ortiz’s Health Care Fraud Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Sentences for September 06 – 12, 2013Read the Press Release
Luis Solis-Zarza, 26, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 12, 2013, for illegal re-entry of a previously deported alien into the United States. Solis-Zarza was arrested in Cheyenne, 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.
Edgar Ismael Martinez-Suarez, 25, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 12, 2013, for illegal re-entry of a previously deported alien into the United States. Martinez-Suarez was arrested in Lander, 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.
Adam David Simkins, 26, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on September 10, 2013, for conspiracy to possess with intent to distribute and distribution of 1,041 grams of methamphetamine. Simkins was arrested in Cheyenne, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and a $250.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Ajay Jariwala, 51, of Albuquerque, New Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 9, 2013, for conspiracy to commit arson. Jariwala was arrested in Albuquerque, New Mexico. He received 72 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment, a $10,000.00 fine and restitution in the amount of $50,000.00 to the Fireman’s Fund Insurance. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
David Mickael Gehl, 26, of Fort Washakie, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 9, 2013, for unlawful user of controlled substance in possession of a firearm. Gehl was arrested in Lander, Wyoming. He received 37 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 Indian Affairs and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Gretchen Ann Elliot, 54, of Big Bear City, California, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 9, 2013, on one count of conspiracy to possess with intent to distribute and two counts of distribution of at least 500 grams but not more than 1.5 kilograms of a mixture or substance containing a detectable amount of methamphetamine. Elliot was arrested in Big Bear City, California. She received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $300.00 special assessment and a $200.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
John Marcus Barnes, 45, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 6, 2013, for conspiracy to possess with intent to distribute, and to distributing at least 500 grams but not more than 1.5 kilograms of a mixture or substance containing a detectable amount of methamphetamine. Barnes was arrested in Cheyenne, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Ernesto Joseph Guerrero, 43, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on September 6, 2013, for conspiracy to possess with intent to distribute, and to distributing 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Guerrero was arrested in Casper, Wyoming. He received 84 months of imprisonment, to be followed by four 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.
Schuylkill County Man Sentenced for Production of Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert Lee Raeder, age 45, of Tamaqua, Schuylkill County, was sentenced today in federal court on a charge of production of child pornography. United States District Court Senior Judge Richard P. Conaboy sentenced Raeder to 121 months of imprisonment and three years supervised release. Raeder was also ordered to comply with the registration requirements of the Sexual Offender Registration Act (the Adam Walsh Act).
Raeder was arrested on April 2, 2013 and charged with the production of child pornography. He entered a guilty plea to the charge on May 7, 2013. The criminal information sets the time period for the offenses as various times between January 2001 through December 2012.
The case against Raeder stems from an investigation by the Pennsylvania State Police Computer Crimes Unit and United States Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Raeder produced videos and other images and then maintained them on his computer. A forensic examination of Raeder’s computer revealed the images and videos. The victims were identified. Raeder is in custody and still faces pending state charges.
United States Attorney Peter J. Smith noted that 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 Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was prosecuted by Assistant United States Attorney Michelle Olshefski.
San Diego Man Who Wore "I Make Pimpin’ Look Easy" Shirt Pleads Guilty to Transporting A Minor for ProstitutionRead the Press Release
Martell Davis, who was wearing a T-shirt that read "I MAKE PIMPIN' LOOK EASY…" when he arrived to pick up his 17-year-old prostitute from a hotel and was arrested, admitted in federal court today that he was, indeed, a pimp.
Davis pleaded guilty before U.S. Magistrate Judge Ruben B. Brooks to transportation of a minor to engage in prostitution. In his plea agreement, Davis admitted that he acted as pimp for a 17-year-old girl when he drove her from San Diego to Yuma, Arizona, so she could engage in commercial sex acts.
According to court records, Davis' arrest was the result of an undercover operation by San Diego vice cops. A detective, responding to an online prostitution ad, set up an $80 "date" for July 26 at a Best Western hotel in Mission Valley. The girl was arrested.
While in the hotel room, the detective used the girl's phone to text a person they believed was her pimp. Posing as the girl, the detective texted the pimp, asking how much she should charge for a particular sex act. The person on the other end responded, "Break the bank." And later, the person using the phone of the suspected pimp inquired how much she’d made from the sex act. The detective texted back "5," meaning $500. The person responded via text, "damn cool."
Using the girl’s phone, the detective asked when the suspected pimp would pick her up. The person responded that he would come to get her. Moments later, defendant Martell Davis arrived at the room where the date was set up with the undercover detective. Davis was arrested at approximately 12:30 am on July 27, 2013, while wearing the T-shirt that read “I MAKE PIMPIN’ LOOK EASY….”
Davis was scheduled to be sentenced December 13, 2013, at 9am before U.S. District Judge Janis L. Sammartino.
DEFENDANT Case Number: 13cr3149 Martell Davis SUMMARY OF CHARGESTransportation of a Minor to Engage in Prostitution, in violation of Title 18, United States Code, Section
INVESTIGATING AGENCY
2423(a) – Maximum Penalties: Life in prison, with mandatory minimum 10 years.San Diego Police Department
Salem Pharmacist Charged with Health Care FraudRead the Press Release
A one-count criminal information was filed charging a Salem, Ohio, pharmacist with health care fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Bruce E. Franken, 52, was excluded in 2003 from participating in all federal health care programs, including Medicare and Medicaid, for a minimum of 10 years as a result of his felony conviction, according to the information.
“This defendant was specifically barred from billing programs such as Medicaid because of his criminal past,” Dettelbach said. “Our office will continue to stamp out waste, fraud and abuse of all federal programs, particularly those that affect our health care system.”
From May 14, 2009, through July 14, 2011, Franken worked as a pharmacist at J.H. Lease Pharmacy, 229 North Ellsworth Avenue, Salem, Ohio. He filled prescriptions for Medicaid recipients even though he knew he was excluded from participation in all federal health care programs.
As a result of Franken’s unauthorized and fraudulent claims, Medicaid was billed and subsequently paid these prescriptions that Franken was prohibited from providing in the amount of $301,550, according to the information.
If convicted, the defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, the defendants’ roles in the offense and the characteristics of the violation. The sentence will not exceed the statutory maximum and in most cases will be less than the maximum.
This case is being handled by Assistant U.S. Attorney Chelsea Rice and Special Assistant U.S. Attorney Constance Nearhood following an investigation by the U.S. Department of Health and Human Services, Office of Inspector General.
An information is only a charge and is not evidence of guilty. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Rockford Man Sentenced to 77 Months in Federal Prison on Gun ChargeRead the Press Release
ROCKFORD — A Rockford, Ill. man was sentenced today in federal court before U.S. District Judge Frederick J. Kapala to 77 months in prison without parole, to be followed by 3 years of supervised release, for illegally possessing a firearm as a convicted felon. Jeffrey L. Lottie, 27, pled guilty to the charge on June 3, 2013.
According to the written plea agreement, at approximately 1:31 a.m., on February 23, 2013, Lottie was a front seat passenger in a red Chevy Monte Carlo being driven by his girlfriend on West State Street in Rockford. A Winnebago County Sheriff's Deputy on patrol on West State Street in Rockford stopped the vehicle for a traffic violation. Lottie admitted that after the car was stopped, he placed a Highpoint .45 caliber semi-automatic handgun into his girlfriend's purse on the rear seat of the Monte Carlo. During the traffic stop, the deputy observed the open purse on the backseat and saw the Highpoint handgun. The magazine of the gun, which was seized by the police, was loaded with 5 rounds, although there was not a round in the chamber. Lottie admitted that he illegally possessed the firearm as a convicted felon and that he possessed the gun when he entered the vehicle.
The defendant was originally charged in state court, and is now charged in federal court under tough federal firearms laws as part of the Project Safe Neighborhoods program. Project Safe Neighborhoods is an intensive, cooperative effort between local, state, and federal law enforcement to attack gun crimes. The cornerstone of the program is that every defendant committing an offense involving a gun will be reviewed for possible federal prosecution in order to obtain the harshest penalties for the worst offenders. Additional information about Project Safe Neighborhoods may be found at: psn.gov.
The sentencing was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; W. Larry Ford, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; Chet Epperson, Chief of the Rockford Police Department; and Richard Meyers, Winnebago County Sheriff.
The government was represented by Assistant U.S. Attorney Joseph C. Pedersen.