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Wednesday 11 September 2013
12 Individuals Indicted and Arrested for Introducing Narcoticts into State PrisonsRead the Press Release
San Juan, Puerto Rico – Twelve individuals, including six state correctional officers, one female correctional nurse, one civilian correctional employee, one state court marshal and three other individuals were charged in nine separate indictments for attempting to introduce heroin into state prisons, announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. The investigation revealed that corrupt correctional employees were abusing their positions to infiltrate narcotics and other contraband into state penitentiaries in Puerto Rico.
According to the indictments, the defendants attempted to distribute heroin by introducing it into state penitentiaries. The defendants and their roles in the indictments are:
- Lina Michelle Narvàez-Arroyo, relative of inmate
- William Joel Medina, correctional officer
- Yolanda Santiago, friend of Narvàez-Arroyo
- Ángel López Reverón, correctional guard
- Héctor Ruiz-Torres, employee of canteen Correctional Services
- Alberto Martínez-Moreno, correctional officer
- Edwin Sànchez-Velàzquez, correctional officer
- Victoria Rivera, correctional nurse
- Luis Lebron-Lebron, correctional officer
- Jessica Moreno, correctional officer
- Joel Torres-Velàzquez, State Court Marshal
- Antonio Romàn-Medina, friend of William Joel Medina
“Corrupt public employees undermine the fabric of our nation’s security, our overall safety, the public trust and confidence in those chosen to protect and serve,” said Rosa Emilia Rodríguez Vélez, U.S. Attorney for the District of Puerto Rico. “The corruption and negligence exemplified in this case cannot and will not be tolerated. We will continue to investigate and prosecute these type of schemes.”
Carlos Cases, Special Agent in Charge of the FBI said: “Corrupt public officials undermine our overall safety, the public trust, and confidence in the Puerto Rico Government system. The FBI will continue to fight corruption in Puerto Rico”.This case is being prosecuted by Assistant U.S. Attorney Héctor Ramírez-Carbó. The case was investigated by Office of Internal Investigations of the Puerto Rico Department of Corrections, Puerto Rico Bureau of Special Investigations, commonly referred to as NIE, the Federal Bureau of Investigation (FBI), and the Puerto Rico Police Department.
The maximum penalties for these offenses are 20 years of imprisonment. An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.
10th Street Member Pleads Guilty to RICO ConspiracyRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Melvin Medina, 27, of Buffalo, N.Y., pleaded guilty before U.S. District Judge Richard J. Arcara to a Racketeering Influenced Corrupt Organizations (RICO) Conspiracy. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that the defendant was a member of the 10th Street Gang. Medina possessed firearms and sold crack cocaine and marijuana as a part of his participation in the 10th Street gang's activities.
The plea is the culmination of an investigation on the part of Investigators of the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commission Daniel Derenda, and Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.
Sentencing is scheduled for January 24, 2014 at 12:30 p.m. before Judge Arcara.
Tuesday 10 September 2013
Violent Repeat Offender Sentenced to 15 Years in Prison for Illegal Gun PossessionRead the Press Release
A repeat offender who was arrested in December 2011 with two firearms in his Tacoma apartment was sentenced today in U.S. District Court in Tacoma to 15 years in prison and five years of supervised release, announced U.S. Attorney Jenny A. Durkan. JAMES QUINCY WILKINSON, 39, has prior convictions for burglary (1993), unlawful possession of a firearm (1994, 1999), Assault (1995, 98, 99) and assault of a child (2005). WILKINSON was released from prison in January 2011. Department of Corrections officers conducted the search after getting reports that WILKINSON was dealing drugs and possessing firearms. U.S. District Judge Benjamin H. Settle determined WILKINSON qualified as an Armed Career Criminal, saying that the case was “extraordinary.” The Judge stated that Wilkinson’s criminal history showed “indifference to the suffering and safety” of others, and found that a long sentence was required “for the protection of the public.”
According to records filed in the case, in December 2011, the Pierce County Sheriff’s Office and the South Sound Gang Task Force received reports that WILKINSON was dealing drugs and was armed. WILKINSON was on community supervision following a ten year prison sentence for assaulting and critically injuring a toddler. Community Corrections officers searched WILKINSON’s car and found crack cocaine. In his apartment they found two loaded weapons – one of them stolen. At a bench trial in September 2012, WILKINSON was found guilty of being a felon in possession of a firearm and an Armed Career Criminal. The finding mandates a sentence of at least 15 years in prison.
The case was investigated by the Tacoma Police Department, the Washington State Department of Corrections, Lakewood Police Department, Washington State Patrol, FBI,
Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the South Sound Gang Task Force.The case was prosecuted by Assistant United States Attorney Michael Dion.
Utah Man Pleads Guilty to Idaho Drug ChargeRead the Press Release
Two Co-defendants Scheduled for Sentencing in November
POCATELLO – Fernando Garcia, 31, of Logan, Utah, pleaded guilty today in United States District Court to one count of conspiracy to distribute cocaine, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, on April 22, 2011, Garcia arranged to sell and subsequently delivered cocaine to another individual in Idaho Falls, Idaho, for $1,150. Garcia admitted knowing the substance he was distributing was cocaine.
Garcia is scheduled to be sentenced on November 19, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello. He faces up to 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release.
Two co-defendants, Josue Rodriguez-Sanchez, and Julian Vega-Valdez, both 25-, of Idaho Falls, pleaded guilty on August 14, 2013, to related drug charges. Sentencing is set for November 18, 2013.
The charges are the result of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), including the Idaho State Police, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Bonneville County Sheriff's Office, Idaho Falls Police Department, Madison County Sheriff's Office, Rexburg Police Department, Bingham County Sheriff’s Office, Fremont County Sheriff’s Office, Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Other federal agencies participating in the OCDETF program include the Drug Enforcement Administration and the U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
University Park Woman Admits Transporting and Shipping Child PornographyRead the Press Release
DALLAS — Erika Susan Perdue, 42, of University Park, Texas, appeared in federal court this morning and pleaded guilty, before U.S. Magistrate Judge Paul D. Stickney, to one count of transporting and shipping child pornography. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
A federal grand jury returned a four-count indictment in May 2012 charging Perdue with two counts of transporting and shipping child pornography, one count of receipt of child pornography and one count of possession of child pornography. Purdue has been in custody since June 2012 when the court found that she had violated the conditions of release.
According to plea documents filed today in the case, if the court accepts the plea agreement, the parties agree that the appropriate term of imprisonment is 168 months (14 years) in federal prison. The court may also order a fine of up to $250,000 and up to a lifetime of supervised release. In addition, as part of her plea agreement with the government, Perdue will pay $5,000, at the time of sentencing, to one of the victims identified by the National Center for Missing and Exploited Children as “Vicky.” Sentencing is set for January 13, 2014, before U.S. District Judge Sam A. Lindsay.
On January 4, 2012, a special agent with the FBI, and on January 5, 2012, an FBI Task Force Officer with the Plano Police Department, each acting online in an undercover capacity and assuming someone else’s identity, launched publicly-available peer-to-peer file-sharing programs and discovered that an individual, using the username, “Classybitch,” later identified as Perdue, was logged on to the network. They observed that the individual’s shared folder contained numerous files, many with names consistent with child pornography. They downloaded files, directly from this individual’s computer, and several did contain child pornography, including one video of a man and a woman engaged in sexually explicit conduct with a minor child. That video is described in Count One of the indictment for which Perdue is pleading guilty.
A search warrant was executed at Perdue’s residence on April 10, 2012. She admitted that one of her screen names was “Classybitch,” and that she traded child pornography while her husband was at work.
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 the FBI and the Plano Police Department. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
United States Attorney Wigginton Announces Press EventRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, in conjunction with the State’s Attorneys of Madison and St. Clair Counties, as well as federal, state, and local law enforcement officers, announced today that there will be a press event held Thursday, September 12, 2013, at 1:00 pm, at the Office of the United States Attorney for the Southern District of Illinois, located at Nine Executive Drive, Fairview Heights, IL, 62208-1344, concerning the announcement of a joint effort and strategy to combat the rise in numbers of armed robberies in the metro-east area.
Members of the Media are advised to have press credentials and to arrive in sufficient time to allow for security screening prior to the event.
Two Men Sentenced to Federal Prison for Fraud in Obtaining City Cable Franchise Subcontracts for Sham Minority BusinessRead the Press Release
CHICAGO — Two defendants who were convicted at trial earlier this year were sentenced today to federal prison for fraudulently running a sham minority-owned cable television installation business that obtained $8.3 million in subcontracts from a cable company that serves residents on the city’s north side. The defendants, GUY POTTER, and MATTHEW GIOVENCO, neither a minority, actually controlled and operated the now-defunct ICS Cable, Inc., which they and others fraudulently disguised as a minority-owned business to obtain citymandated minority sub-contracts under the lakefront cable franchise held by RCN Telecom Services of Illinois LLC.
Potter, 67, of Versailles, Ky., and formerly of Bensenville, was sentenced to 4½ years beginning on Oct. 31, and Giovenco, 43, of Grayslake, was sentenced to three years in prison beginning on Dec. 2. The sentences were imposed by U.S. District Judge Rebecca Pallmeyer, who also ordered both defendants to forfeit $2.2 million in profits and to pay $217,580 in restitution to RCN.
The defendants engaged in a “cynical manipulation of this program . . . designed to enhance business opportunities for minorities,” Judge Pallmeyer said in sentencing Potter.
Potter and Giovenco, along with two co-defendants, were indicted in April 2011 and they were both convicted of six counts of mail fraud last April after a jury trial in Federal Court. Two co-defendants, JERONE BROWN, who served as the sham minority owner and president of ICS, and his mother, CHERONE MAYES, both of Chicago, who paid a $500 bribe to a city employee to expedite the minority-owned business (MBE) certification for ICS, testified as government witness after pleading guilty and both are awaiting sentencing.
“The defendants engaged in a lengthy fraud scheme that resulted in millions of dollars of contracts being diverted from legitimate minority- and women-owned businesses,” Assistant U.S. Attorney Jessica Romero argued at sentencing.
According to the trial evidence and court records, RCN’s cable franchise agreement required it to sub-contract 40 percent of the cable installation and disconnection services to citycertified minority-owned businesses. Between April 2003 and October 2006, Potter and Giovenco, assisted by Brown and Mayes, fraudulently obtained at least $8.3 million from RCN by falsely representing that Brown owned and operated ICS. All four defendants supported the false representations to RCN with an MBE certification for ICS that they obtained by making false representations to the city regarding Brown’s purported ownership and control of ICS, when, in fact, Potter and Giovenco alone controlled ICS and made most, if not all, financial and managerial decisions for the business.
The sentences were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Joseph Ferguson, Inspector General for the City of Chicago.
Two Jackson County Residents Sentenced on Methamphetamine ConspiracyRead the Press Release
On September 10, 2013, Rachel L. Mills, 34, of Campbell Hill, IL, and Joseph R. Green, 48, of Elkville, IL, were sentenced in United States District Court in Benton on an indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Mills and Green had previously pled guilty to the methamphetamine conspiracy, which occurred between August 2009 and September 4, 2012, in Jackson County. Mills was sentenced to 70 months in prison and fined $200. Green was sentenced to 48 months in prison and fined $300. Both were also placed on 3 years of supervised release following their prison sentences. Evidence at the plea and sentencing hearings established that Mills and Green were involved with each other and others in the manufacture of methamphetamine. Mills supplied pseudoephedrine pills and other materials to Green and others for use in the manufacture of methamphetamine. On September 4, 2012, Mills was arrested in Murphysboro after she attempted to steal lithium batteries for Green to use to manufacture methamphetamine.
The investigation was conducted by the Jackson County Sheriff s Office and Murphysboro Police Department. The Jackson County State’s Attorney’s Office also assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Twenty-Five Area People Arrested on Federal Drug and Weapons ChargesRead the Press Release
St. Louis, MO –Twenty-five area people have been arrested on three indictments involving federal drug and weapons charges involving the distribution and manufacture of large amounts of methamphetamine in the Eastern District of Missouri, from October 2010 to September 2013. Several of the individuals indicted are members of the Saddle Tramps Motorcycle Club, including Arvil B. Matthews, the President of the Club.
"This case is another example of some of the problems with House Bill No. 436. If it were the law today, criminal defendants in this case would have the right to sue the law enforcement officers who investigated the case, and the law enforcement officers would be defendants in both civil and criminal lawsuits. I can't believe this is what the legislature intended," said U.S. Attorney Richard Callahan.
Individuals indicted:
- JORGE LOPEZ, Corinth, TX
- MELVIN J. SCHERRER, Bonne Terre, MO
- ALAN D. ADLER, Bonne Terre, MO
- BRENT T. BOUREN, St. Louis, MO
- HOWARD R. PYATT, a/k/a “Bud,” Bonne Terre, MO
- ARVIL B. MATTHEWS, Imperial, MO
- MARK E. ABNEY, Bonne Terre, MO
- AMBER D. SCISM, Farmington, MO
- TERRI L. FOX, St. Louis, MO
- GUILLERMO NAVARRO, a/k/a “Willie,” St. Louis, MO
- JERRY L. ADDISON, St. Louis, MO
- JERAMI A. WESTENBERGER, Arnold, MO
- RAY ALLEN DAVIS, JR., Union, MO
- JAMES A. MITCHELL, St. Louis area
- PATRICK A. TATE, St. Louis, MO
- JIMMIE D. JOHNSON, St. Clair, MO
- DONALD J. MAGUIRE, St. Louis, MO
- THEODORE S. HEEGE, St. Louis, MO
- NORMA J. EGAN, St. Louis, MO
- DONNA L. MOSS, St. Louis, MO
- SHEILA C. HEEGE, St. Louis, MO
- DANIELLE R. BECKER, Park Hills, MO
- HALEY L. MEIER, St. Louis, MO
- HEATHER N. MARTIN, St. Louis, MO
- AMY G. HORRELL, Bonne Terre, MO
If convicted, the drug charges carry penalty ranges of 10 years to life in prison and firearms charges carry up to 10 years in prison. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is a joint operation of the Federal Bureau of Investigation, the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol, St. Charles and Jefferson County Sheriff’s Offices, the St. Louis Metropolitan Police Department and multiple local law enforcement agencies. Assistant United States Attorney Jeannette Graviss is handling the case for the Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Three Executives of South Florida Psychiatric Hospital Sentenced in $67 Million Health Care Fraud SchemeRead the Press Release
Three executives of Hollywood Pavilion LLC (HP), an inpatient psychiatric hospital located in Broward County, Fla., were sentenced today for their roles in a $67 million Medicare fraud scheme.
U.S. Attorney Wilfredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigation’s Miami office made the announcement.
Karen Kallen-Zury, 60, of Lighthouse Point, Fla.; Daisy Miller, 44, of Hollywood, Fla.; and Christian Coloma, 50, of Miami Beach, Fla., were sentenced by U.S. District Judge Jose E. Martinez in the Southern District of Florida. Kallen-Zury was sentenced to serve 25 years in prison; Miller was sentenced to 15 years in prison; and Coloma was sentenced to 12 years in prison. In addition to their prison terms, Kallen-Zury and Miller were ordered to pay more than $39 million in restitution, jointly and severally with certain co-defendants. Coloma was ordered to pay more than $20 million in restitution, jointly and severally with certain co-defendants. The sentencing hearing for Michele Petrie, another convicted executive of HP, is scheduled for Dec. 18, 2013.
On June 28, 2013, Kallen-Zury and Miller were found guilty of one count of conspiracy to commit wire fraud and health care fraud, five substantive counts of wire fraud and two substantive counts of health care fraud. Coloma was convicted of one count of conspiracy to pay bribes in connection with Medicare. Kallen-Zury and Coloma were also convicted on five substantive counts of paying bribes.
“Health care fraud is a devastating crime that threatens the strength and integrity of our health care system,” said U.S. Attorney Ferrer. “As I have previously stated, we remain steadfast in our efforts to protect Medicare from fraud and abuse for those who need it – the sick, the elderly and the poor. Today’s sentencing should send a strong, clear message to anyone seeking to defraud Medicare: You will get caught and you will be brought to justice.”
“These defendants from Hollywood Pavilion who were sentenced today are the first executives from a licensed state hospital prosecuted by the Medicare Fraud Strike Force,” said Acting Assistant Attorney General Raman. “They abused the public’s trust by deliberately targeting disabled substance abusers and conning them into spending weeks locked down at a psychiatric hospital. Their conduct proves that healthcare fraud is not only about harm to the public fisc – it is about real harm to individuals in need of medical care. Thanks to the hard work of the Strike Force, the nine-year, $67 million scheme was discovered, the hospital was shut down, and the executives will now spend as much as 25 years in prison.”
“Bribes, kickbacks and false claims are words that have no place in America’s health care lexicon, yet the greed of these executives developed into an elaborate $67 million health care fraud scheme that involved these very terms,” said FBI Special Agent in Charge Steinbach. “Ultimately, health care fraud robs from the elderly and disabled. The FBI and its partners will continue to pursue those individuals who pay kickbacks and fraudulently bill for medical services that are not necessary or ever provided.”
Evidence at trial demonstrated that the defendants and their co-conspirators caused the submission of false and fraudulent claims to Medicare through HP, a state-licensed psychiatric hospital located in Hollywood that purportedly provided, among other things, inpatient psychiatric care and intensive outpatient psychiatric care. The defendants paid illegal bribes and kickbacks to patient brokers to obtain Medicare beneficiaries as patients at HP who did not qualify for psychiatric treatment. The defendants then submitted claims to Medicare for those patients who were procured through bribes and kickbacks.
According to evidence at trial, Kallen-Zury, the CEO and registered agent of HP, attempted to conceal the payment of bribes and kickbacks by creating false documents to make it appear as if legitimate services were being rendered. Miller, the clinical director of HP’s inpatient facility, and Petrie, the head of HP’s intensive outpatient program, facilitated the payment of bribes to patient recruiters and oversaw the fraudulent admissions and treatment of unqualified patients. Coloma, the director of physical therapy for an entity associated with HP, facilitated the payment of bribes and kickbacks, and he supervised the creation of false documents to conceal the bribery scheme.
From at least 2003 through at least August 2012, HP billed Medicare nearly $70 million for services that were not properly rendered, for patients that did not qualify for the services being billed and for claims for patients who were procured through bribes and kickbacks.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case was prosecuted by Trial Attorneys Robert Zink, Andrew Warren and Anne McNamara of the Criminal Division’s Fraud Section, with assistance from Assistant U.S. Attorney Timothy Abraham of the Southern District of Florida.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Thomas Michael Shumate 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 10, 2013, before U.S. District Judge Sam E. Haddon, THOMAS MICHAEL SHUMATE, a 35-year-old resident of Red Lodge, was sentenced to a term of:
Prison: 27 months
Special Assessment: $100
Supervised Release: 3 years
SHUMATE was sentenced in connection with his guilty plea to being a felon-in-possession of a firearm..
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
In Nashville, Tennessee, SHUMATE was convicted of felony burglary to a vehicle in 2005, and in 2008 of felony burglary to a vehicle and felony theft, therefore prohibiting him from possessing firearms.
On September 20, 2012, the owner of the Red Lodge Antique Mall called law enforcement concerned about two firearms that they purchased from SHUMATE the previous day. The firearms were a Savage/Stevens, model 94 - Series P, .410 caliber, break-automatic shotgun, and a Savage, model III, .300 Win Mag caliber, bolt-automatic rifle.
Law enforcement later learned that the firearms were taken from a Red Lodge residence that SHUMATE was house-sitting.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SHUMATE will likely serve all of the time imposed by the court. In the federal system, SHUMATE 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 Red Lodge Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Thomas Joseph Spotted Eagle 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 10, 2013, before U.S. District Judge Sam E. Haddon, THOMAS JOSEPH SPOTTED EAGLE, a 30-year-old resident of Pablo, was sentenced to a term of:
Prison: 12 months
Special Assessment: $100
Supervised Release: 3 years
SPOTTED EAGLE was sentenced in connection with his guilty plea to use of a communications device to aid in a conspiracy to possess with intent to distribute marijuana.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
On July 20, 2010, a Yellowstone County Sheriff's Office Deputy initiated a traffic stop on a black 2010 Mercedes Benz SUV after running the license plate and determining that the owner had a valid arrest warrant. The owner of the vehicle, Joseph Chartraw, provided a false name to the deputy but ultimately admitted his name. A narcotics-detecting K-9 was called to the scene and positively alerted on the vehicle for the presence of narcotic odors. The vehicle was impounded pending a search warrant application. A subsequent search yielded airline tickets, a cell phone, documents, $14,154 in cash, and user amounts of marijuana.
Pursuant to the Search Warrant, detectives had the cellular telephone that was seized from the vehicle analyzed. The contents revealed that Chartraw had been involved with selling hundreds of pounds of marijuana, as well as transporting tens of thousands of dollars in cash. Some of the text messages on the phone blatantly discussed prices for pounds of marijuana, smuggling bulk cash via the airlines, having bulk cash from drug proceeds deposited into bank accounts, and dealing marijuana to the Indian reservations in Montana. According to the text messages on the phone, marijuana was distributed to Browning, Polson, Crow Agency, as well as Havre, St. Ignatius, Great Falls, Missoula, Cut Bank, Lolo, and other places throughout Montana.
One of the subjects having drug-related communications with Chartraw was SPOTTED EAGLE. On June 15, 2010, SPOTTED EAGLE and Chatraw exchanged a series of text messages arranging for SPOTTED EAGLE to pick up marijuana from one of Chartraw's distributors for future distribution to SPOTTED EAGLE's marijuana customers.
Chartraw was interviewed and admitted SPOTTED EAGLE was his second largest distributor of marijuana and that the two used their cellular telephones to arrange drug deals.
Chartraw pled guilty to federal charges and has been sentenced.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SPOTTED EAGLE will likely serve all of the time imposed by the court. In the federal system, SPOTTED EAGLE 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 conducted by the Billings Big Sky Safe Streets Task Force.
Tampa Drug Dealer Sentenced to Life in Federal PrisonRead the Press Release
Tampa. Florida- U.S. District Judge William J. Castagna yesterday sentenced Eugene E. Davis (39) to life in federal prison for conspiracy to possess with the intent to distribute five kilograms or more of cocaine and conspiracy to possess 280 grams or more of cocaine base. The life sentence was imposed as a result of Davis's prior felony drug convictions. A federal jury found Davis guilty on May 16, 2013.
According to testimony and evidence presented at trial, Davis engaged in a year- long conspiracy with others to distribute hundreds of kilograms of cocaine and crack cocaine in Hillsborough County. Davis, a prolific crack dealer, was known for purchasing multiple kilograms of cocaine and cooking it into crack cocaine. Often described as "flashy and flamboyant," Davis used his drug proceeds to fund an extravagant lifestyle of high-end cars, expensive jewelry, and thousands of dollars in cash. The court also concluded that Davis was a career offender who obstructed justice when he attempted to intimidate witnesses by listing their names in news outlets and on social media, labeling them "snitches."
This case resulted from an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation conducted by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service - Criminal Investigation, Hillsborough County Sheriff's Office, and Tampa Police Department. It was prosecuted by Assistant United States Attorney Shauna S. Hale. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Statement of United States Attorney Loretta E. Lynch Regarding the Sentencing of Ronell WilsonRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, New York, United States District Judge Nicholas G. Garaufis sentenced Ronell Wilson to death for the murders of two New York City Police Department Detectives, Rodney J. Andrews and James V. Nemorin.
Today’s sentencing followed a five-week evidentiary hearing that culminated on July 24, 2013, with a federal jury verdict unanimously recommending that the court impose the death penalty on Wilson.
“Wilson’s death sentence marks the end of a ten-year odyssey in the relentless pursuit of justice,” stated United States Attorney Loretta E. Lynch. “This sentence follows the recommendation of a jury of Wilson’s peers that justice requires the imposition of the ultimate punishment for the vicious and senseless murder of two husbands, two fathers and two protectors of the City of New York. With this sentence, we can only hope that the families of New York City Police Detectives Andrews and Nemorin will take some comfort in its finality.”
St. Francis Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on September 9, 2013, by U.S. District Judge Roberto A. Lange.
Koty Arcoren, age 21, was sentenced to 12 months and 1 day of imprisonment, 5 years of supervised release, $305.66 restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Arcoren was indicted by a federal grand jury in May of 2013, and pled guilty to the Indictment on June 13, 2013.
On February 28, 2011, Arcoren was convicted of Abusive Sexual Contact. The Court sentenced Arcoren to 31 months in custody, seven years of supervised release, and also ordered that he register as a sex offender. Arcoren began his term of supervised release and absconded from supervised release on April 12, 2013. During the time he absconded from supervised release until he was apprehended in Todd County on April 29, 2013, he failed to complete his sex offender registration requirement.
The investigation was conducted by the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
Arcoren was immediately turned over to the custody of the U.S. Marshals Service.Sixteen Indicted, Fourteen Apprehended in Early Morning Drug SweepRead the Press Release
Memphis, TN – An early morning sweep by law enforcement officers from the Federal Bureau of Investigation and numerous local law enforcement agencies resulted in the apprehension of 14 individuals involved in a drug distribution conspiracy, announced U.S. Attorney Edward L. Stanton III and A. Todd McCall, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation.
According to a federal grand jury indictment unsealed today, the following individuals did unlawfully and knowingly conspire to possess and distribute more than five kilograms of cocaine:Osiel Lopez-Acuna, a/k/a “Buddha,” 34, of Memphis;
Christopher Love, 38, of Memphis;
Gilberto Conde, a/k/a “Gilberto Conde-Sanchez,” age unknown, of Memphis;
Enrique Rodriguez, a/k/a “Kike,” age unknown, of Memphis;
Alfonso Perez Hernandez, a/k/a “Kora,” 45, of Memphis;
Francisco Javie Valtierra-Zuni, a/k/a “Fabian Avila-Prieto,” age unknown, of Memphis;
David Martinez, age unknown, of Memphis;
Jose Trinidad Arteaga, a/k/a “Pelon,” a/k/a “Dreamer,” 30, of Memphis;
Julius Hull, a/k/a “Trey,” 36, of Memphis;
Gregory Ledronte Miller, a/k/a “Bebe,” 34, of Memphis;
Daniel Morales, age unknown, of Memphis;
Benigno Morales Vasquez, a/k/a “Muchi,” 39, of Memphis;
Aquilino Gonzalez, 30, of Memphis;
Terry Greer, 40, of Memphis;
Otis Booth, a/k/a “Otis Boothes,” age unknown, of Memphis;
and Correy Dewayne Morris, 35, of Memphis.In addition, Gilberto Conde was indicted for one count of possession of a firearm while in the country illegally and one count of possession of a firearm in the furtherance of drug trafficking. Otis Booth and Enrique Rodriguez remain at large.
# # # #
Officials also seized approximately 10 guns, night vision goggles, body armor, approximately $125,000 in cash, and approximately two kilograms of suspected cocaine. This investigation was conducted in conjunction with prosecutors in Memphis as part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
This case is being investigated by the FBI Safe Streets Task Force, Shelby County Sheriff's Office, Memphis Police Department, Bartlett Police Department, Germantown Police Department and the DeSoto County Sheriff's Office. Assistant United States Attorney Daniel French is representing the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Sioux Falls Man Pleads Guilty to Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that Jeremy Jeunesse, a/k/a Jeremy Chasing Horse, a/k/a Jeremy Trudell, age 34, of Sioux Falls, South Dakota, appeared before Chief Judge Jeffrey L. Viken, U.S. District Court on September 5, 2013, and pled guilty to Failure to Register as a Sex Offender.
The maximum penalty upon conviction is 10 years of imprisonment and a $250,000 fine.
The charge relates to Jeunesse failing to register as a convicted sex offender in Pennington County on September 1, 2012. The investigation was conducted by the U.S. Marshals Service.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.Silver City Man Pleads Guilty to Federal Firearms ChargesRead the Press Release
ALBUQUERQUE – Gabriel Anthony Saiz, 20, of Silver City, N.M., pleaded guilty in federal court in Las Cruces this afternoon to firearms charges. Saiz entered his guilty plea without the benefit of a plea agreement.
Saiz and his co-defendant Javier J. Reyes, 19, of the Village of Santa Clara, N.M., were charged with possession of an unregistered firearm in a criminal complaint filed on March 1, 2013. The two men subsequently were indicted and charged with (1) possession of an unregistered short-barreled rifle, and (2) possession of a firearm with an obliterated serial number. According to the indictment, Saiz and Reyes possessed a firearm made from a Mossberg .22 caliber rifle with a barrel length of less than 16 inches and an obliterated serial number that was not registered to either man on Nov. 27, 2012, in Grants County, N.M.
According to court filings, Saiz and Reyes were arrested on local charges by the Silver City Police Department on Nov. 27, 2012, in Silver City after they allegedly robbed a woman at gunpoint at approximately 7:30 p.m. that day and allegedly assaulted four individuals by brandishing a firearm at them approximately an hour later. The officers were able to apprehend Saiz and Reyes at approximately 9:00 p.m. that night because the victim of the armed robbery reported the crime and provided the license plate number for the vehicle in which Saiz and Reyes were driving. When the officers arrested Saiz and Reyes, they observed a firearm on the floor board under the front passenger seat.
During today’s proceedings, Saiz pleaded guilty to both counts of the indictment. At sentencing, Saiz faces a maximum penalty of ten years in prison for possession of an unregistered firearms and a maximum penalty of five years in prison for possession of a firearm with an obliterated serial number. He remains in federal custody pending his sentencing hearing, which has yet to be scheduled.
Reyes has entered a not guilty plea to the charges in the indictment and is scheduled for trial on Nov. 18, 2013. The charges against Reyes are merely accusations and he is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
Acting U.S. Attorney Steven C. Yarbrough said, “The facts giving rise to this case demonstrate the importance of enforcing the federal firearms laws. Prosecuting individuals, like Saiz, who use firearms to commit violent crimes and endanger the lives of innocent victims makes communities like Silver City safer places to live and raise families. I commend the ATF for its commitment to working with state and local law enforcement authorities throughout New Mexico for enhancing public safety in our communities.”
“Today’s guilty plea serves as a perfect example of the federal-state teamwork we strive to achieve. I commend the efforts of the Silver City Police Department and the tireless commitment of the ATF agents involved in this case. I also wish to recognize the leadership of the U.S. Attorney’s Office in their prosecution” stated ATF Special Agent in Charge Bernard J. Zapor.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Silver City Police Department and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Shawnee Man to Serve 90 Months in Prison for Abuse of Four-Year-Old Child in Indian CountryRead the Press Release
Oklahoma City, Oklahoma – Justin L. Ellis, 26, of Shawnee, Oklahoma, and a tribal member of the Kickapoo Tribe, was sentenced yesterday by U.S. District Court Judge Stephen Friot to serve 90 months in federal prison for malicious injury of a four-year old child on the federal lands held in trust for the Kickapoo Tribe of Oklahoma, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, on November 10, 2012, Ellis, a tribal member of the Kickapoo Tribe, repeatedly burned a four-year-old child on the buttocks and legs with a lit cigarette on Kickapoo Tribal land in in Pottawatomie County. Ellis pled guilty on June 3, 2013. At sentencing, the court went above the sentencing guidelines of up to 51 months in prison to fashion a 90-month sentence appropriate to the crime. Upon release from prison, Ellis will be supervised by the U.S. Probation office for an additional three years.
This case is the result of an investigation by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Robert Don Gifford, II.
Rosebud Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man convicted of Abusive Sexual Contact was sentenced on September 9, 2013, by U.S. District Judge Roberto A. Lange.
Sonny Gray Grass, age 52, was sentenced to 84 months in custody, 8 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Gray Grass was indicted by a federal grand jury on August 22, 2012, and pled guilty to Abusive Sexual Contact on May 29, 2013.
The conviction stems from an incident that took place in Todd County between April 24 and April 28, 2008, when Gray Grass engaged in sexual contact with the victim. At the time of the offense, the victim was under the age of 12.
The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
Gray Grass was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.Rolla Woman Sentenced for Bank Fraud & Criminal MischiefRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Sept. 10, 2013, Nicole Rogers, 25, Rolla, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of bank fraud. Rogers pleaded guilty to the charge on March 28, 2013.
Judge Hovland sentenced Rogers to two months in custody, to be followed by three years of supervised release. Rogers was ordered to pay a $100 special assessment to the Crime Victim’s Fund and $2100 in restitution.
In October 2012 Rogers presented checks with forged signatures to Dacotah Bank in Belcourt. Rogers withdrew and attempted to withdraw money by representing she was entitled to the money.
In a separate case, on Sept. 10, 2013, Rogers pleaded guilty and was sentenced by U.S. District Judge Daniel L. Hovland on a charge of criminal mischief.
On Feb. 23, 2013, Rogers used a sharp object to scratch a vehicle which belonged to another person.
Judge Hovland sentenced Rogers to two months in federal custody, to be followed by one year of supervised release. Rogers was ordered to pay a $25 special assessment to the Crime Victim’s Fund and $250 in restitution.
The case was investigated by the Bureau of Indian Affairs – Turtle Mountain Agency.
Assistant U.S. Attorney Brandi Sasse Russell prosecuted the case.
Polk County Man Charged in Federal Court for Possession of Child PornographyRead the Press Release
Tampa, FL - Acting United States Attorney A. Lee Bentley, III announces the arrest of Eleftherios (Ted) Zachariadis (46, Lake Alfred) for possession of child pornography. If convicted, Zachariadis faces a maximum penalty of 10 years in federal prison and a fine of up to $250,000. Zachariadis was charged by criminal complaint on September 9, 2013.
According to the complaint, an undercover law enforcement officer downloaded multiple child pornography files over the Internet from an IP address connected to Zachariadis's residence. On September 9, 2013, a federal search warrant was executed at the residence. Zachariadis was found to be in possession of more than 900 images and more than 200 videos depicting child pornography.
A criminal complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Florida Department of Law Enforcement, the Polk County Sheriff's Office, the Internet Crimes Against Children Task Force and the Lake Alfred Police Department. It will be prosecuted by Assistant United States Attorney Jennifer L. Peresie.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Pine Ridge Woman Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Tricia Lee Pond, age 42, of Pine Ridge, South Dakota, appeared before U.S. Magistrate Judge Veronica L. Duffy, on September 6, 2013, and pled guilty to Conspiracy to Distribute a Controlled Substance.
A presentence investigation was ordered and a sentencing date has not been set. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.
The penalty upon conviction is at least five, and not more than 40 years, in prison and/or a $5,000,000 fine.
Between 2009 and April 2013, Pond conspired with others to distribute more than 500 grams of cocaine on and around the Pine Ridge Indian Reservation.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. The case is being prosecuted by Assistant U.S. Attorney Ted L. McBride.Philadephia Man Charged with Gun OffenseRead the Press Release
Philip Epps, 26, of Philadelphia, Pa., was charged today by Indictment with possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a mandatory minimum term of imprisonment of 15 years, and a maximum possible sentence of life imprisonment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Virgil B. Walker.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pataskala Man Pleads Guilty to CounterfeitingRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Joshua M. Guyselman, 29, of Pataskala, Ohio pleaded guilty in U.S. District Court to one count of manufacturing counterfeit U.S. $100 bills.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Mark Porter, Special Agent in Charge, U.S. Secret Service, Ohio State Highway Patrol Superintendent Paul Pride, Reynoldsburg Police Chief Jim O’Neill and Pataskala Police Chief Bruce Brooks announced the plea entered today before U.S. District Judge Michael Watson.
According to testimony by a Secret Service agent during the plea hearing, Reynoldsburg Police officers detained Guyselman in February 2013 after he went to a local business and attempted to pass a counterfeit $100 bill he made. Further investigation revealed that Guyselman used a process known as “bleaching” to produce counterfeit bills on genuine paper used for U.S. currency that he then passed at area businesses in Licking County.
“Bleaching” is a process in which chemicals are used to remove the ink from small denomination Federal Reserve notes. A counterfeiter will print the markings of a higher denomination note on the “bleached” note, often using a home computer and printer.
Counterfeiting of U.S. currency is punishable by up to 20 years in prison. Judge Watson will schedule a date for sentencing after the court completes a pre-sentence investigation. Guyselman will remain free on bond until sentencing.
U.S. Attorney Stewart commended the cooperative investigation by the Secret Service, the Highway Patrol, and the police departments in Pataskala and Pickerington, as well as Assistant U.S. Attorney Dale E. Williams Jr., who is prosecuting the case.
Oklahoma City Nurse Practioner Pays $50,000 to Settle Civil Penalty Claims Involving Violations of Controlled Substances ActRead the Press Release
Oklahoma City, Oklahoma -- Brandi A. Kammerer, N.P., who practices in Oklahoma City, Oklahoma, has agreed to pay $50,000 to the United States to settle civil penalty claims stemming from allegations that she violated the Controlled Substances Act, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
The Controlled Substances Act, 21 U.S.C. Sections 801 et seq. ("CSA"), was passed by Congress to combat the illegal distribution and abuse of controlled substances, including prescription medications. The CSA is enforced by the Drug Enforcement Administration's (DEA) Office of Diversion Control, with a mission to prevent, detect, and investigate the diversion of controlled pharmaceuticals and listed chemicals from legitimate sources while ensuring an adequate and uninterrupted supply for legitimate medical, commercial, and scientific needs.
The United States alleged that from September 10, 2010, through August 29, 2012, Ms. Kammerer issued prescriptions to individuals for controlled substances that were not for a legitimate medical purpose and not in the usual course of professional practice. More specifically, NP Kammerer improperly issued prescriptions for controlled substances to two family members, and without having established a provider/patient relationship.
In order to resolve the civil penalty claims by the United States, Ms. Kammerer agreed to pay $50,000 to the government. In reaching this settlement, Ms. Kammerer did not admit liability, and the government did not make any concession regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the Drug Enforcement Administration’s Office of Diversion Control and was prosecuted by Assistant United States Attorney Ronald R. Gallegos.
North Carolina U.S. Attorney Offices Co-Sponsor Human Trafficking Symposium September 12-13, 2013 in RaleighRead the Press Release
RALEIGH - United States Attorneys Thomas G. Walker, Ripley Rand, and Anne M. Tompkins announced that their three Offices are co-sponsoring a Human Trafficking Symposium September 12-13, 2013 at the Double Tree by Hilton Brownstone in Raleigh. Preventing and prosecuting Human Trafficking cases is a priority of the U.S. Department of Justice and the training is designed to bring together law enforcement and service providers to educate them about this heinous crime that plagues our nation.
Credentialed members of the media are invited to the conference.
Human Trafficking is called the modern day slavery in the United States. There is a great need to educate law enforcement personnel about how to identify and investigate these cases. There is also a need to educate service providers and law enforcement about the methods to reduce the barriers of bringing a human trafficking case to federal court for prosecution and help eliminate the obstacles victims face when seeking services. Additionally, there is a need to educate our state and local partners about the federal tools available to prosecute these crimes.
“One of the Department of Justice’s priorities is protecting vulnerable victims and holding offenders accountable, and North Carolina’s United States Attorney’s Offices are committed to working together with law enforcement and other groups to fight human trafficking,” said United States Attorney Rand.
“Human trafficking is a national epidemic and it is also happening here, in our own communities, with many of the victims and perpetrators hiding in plain sight. Over the past two years, the U.S. Attorney’s Office for the Western District of North Carolina has played an active role in raising public awareness, increasing law enforcement training and establishing partnerships with victim service providers in Western Carolina. This symposium is a continuation of our efforts to create and maintain these strong partnerships, which can be force multipliers in our fight against this form of modern day slavery,” said U.S. Attorney Tompkins.
“This event is an excellent example of the vital collaboration needed between the law enforcement and the service provider community. Efforts to confront human trafficking must include an increased awareness of the indicators of this crime by those who are most likely to encounter the victims,” said U.S. Attorney Walker.
The Symposium is also being co-sponsored by the U.S. Department of Justice, Office for Victims of Crime, the North Carolina Coalition Against Sexual Assault, the North Carolina Justice Academy, the Carolinas Institute for Community Policing, and the North Carolina Victim Assistance Network.Nine Trey Gangster Leader Sentenced to 30 Years, Girlfriend Sentenced to Nearly Six YearsRead the Press Release
RICHMOND, Va. – Quincy L. Burrell, 36, of Richmond, Virginia, was sentenced today to 360 months’ in prison, to be followed by 5 years of supervised release for charges of conspiracy to distribute crack cocaine and possession of a firearm by a convicted felon.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Jeffrey C. Mazanec, Special Agent in Charge, Federal Bureau of Investigation’s Richmond Field Office; Ray J. Tarasovic, Chief of Police for Richmond Police Department; Colonel W. Steven Flaherty, Superintendent, Virginia State Police; and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration (DEA)’s Washington Division, made the announcement after the sentence was imposed today by United States District Judge James R. Spencer.
Burrell was charged in a criminal indictment with conspiracy to distribute, and possess with the intent to distribute, 280 grams or more of cocaine base; and possession of a firearm and ammunition by a convicted felon.
In the Statement of Facts filed at the time of his plea hearing in June, Burrell admitted to having distributed between 2.8 and 8.4 kilograms of “crack” cocaine into the Richmond, Virginia metropolitan area in furtherance of the conspiracy.
Burrell also admitted in the Statement of facts that he is a leader of the NTG, holding the rank of “High Stain.” NTG a set of the United Blood Nation (UBN). NTG members are organized into “line-ups.” There were multiple active “line-ups” in Virginia and elsewhere under Burrell’s control. The “High Stain” of each line-up reports to two “Godfathers,” both of whom are in New York. Burrell admitted that nearly every member of the NTG line-up in Virginia was involved in the distribution of narcotics at the direction of, or for the benefit of the gang. In addition, he stated that distribution of narcotics was routinely discussed at NTG meetings, which also included assigning discipline to NTG members who have improperly managed drug proceeds. Discipline may involve a loss of rank, or a 31 second beating.
Sande Chhim, Burrell’s girlfriend at the time of their arrest, and a co-defendant in the drug trafficking conspiracy, was sentenced to 70 months’ in prison on September 9, 2013, for her role in the conspiracy. Although Chhim was not a member of the NTG, she was an active participant in the conspiracy with Burrell from 2011 until their arrest in March 2013. Her involvement included providing Burrell with a place to cook cocaine hydrochloride into “crack” cocaine, driving Burrell to meetings with his suppliers and sub-dealers, pooling her money with Burrell’s to purchase narcotics, wiring drug proceeds to NTG leadership out of state, and serving as a nominee by placing vehicles and apartments in her name for Burrell. She facilitated the concealment of firearms and a vehicle that had been involved in criminal activity for the benefit of the gang.
This case was initiated and investigated by the FBI as part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation - Full Blooded Ink. Assistant United States Attorney Angela Mastandrea-Miller 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.Michael Anthony Ervin 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 10, 2013, before U.S. District Judge Sam E. Haddon, MICHAEL ANTHONY ERVIN, a 48-year-old resident of Billings, was sentenced to a term of:
Prison: 148 months
Special Assessment: $100
Supervised Release: 3 years
ERVIN was sentenced in connection with his guilty plea to distribution of hydrocodone.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
An agent assigned to the Drug Enforcement Administration's Tactical Diversion Squad purchased prescription pills from ERVIN in Roundup and Billings from December 28, 2011, and continuing through February 3, 2012.
Specifically, the agent purchased 60 hydrocodone 5mg pills on December 28, 2011, in Roundup, from ERVIN. The agent purchased 20 hydrocodone 5mg pills and 12 morphine 30mg pills on January 18, 2012, in Billings, from ERVIN. The agent purchased 100 hydrocodone 5mg pills on February 3, 2012, in Billings, from ERVIN.
A chemist from the DEA laboratory in San Francisco verified the presence of controlled substances - hydrocodone and morphine - in the pills purchased from ERVIN.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that ERVIN will likely serve all of the time imposed by the court. In the federal system, ERVIN 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 conducted by the Drug Enforcement Administration Tactical Diversion Squad which includes the Montana Division of Criminal Investigation and the Billings Police Department.
Medical Supply Company Officer and Southern California Physician Sentenced for $1.5 Million Medicare FraudRead the Press Release
A former officer of Fendih Medical Supply Inc. was sentenced to serve 51 months in prison yesterday in Los Angeles for his role in a fraud scheme that resulted in $1.5 million in fraudulent claims to Medicare. In addition, a physician was sentenced to 27 months in prison for his role in the scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney André Birotte Jr. of the Central District of California, Special Agent in Charge Glenn R. Ferry of the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office made the announcement.
Godwin Onyeabor, 49, of San Bernandino, Calif., was sentenced on Sept. 9, 2013, by U.S. District Judge Manuel L. Real in the Central District of California to 51 months in prison. In addition to his prison term, Onyeabor was sentenced to three years of supervised release. Restitution will be determined at a later date. Dr. Sri J. Wijegunaratne, 58, of Anaheim, Calif., was sentenced to 27 months in prison by Judge Real. In addition to his prison term, Wijegunaratne was sentenced to three years of supervised release and ordered to pay restitution in the amount of $87,846.
On April 24, 2013, a jury in Los Angeles federal court found Wijegunaratne, Onyeabor and Heidi Morishita, 48, guilty of one count of conspiracy to pay and receive kickbacks. In addition, Wijegunaratne and Onyeabor were found guilty of conspiracy to commit health care fraud. Wijegunaratne was found guilty of seven counts of health care fraud, and Onyeabor was found guilty of eleven counts of health care fraud.
During trial, the evidence showed that Onyeabor, as the former officer of a durable medical equipment (DME) supply company, fraudulently billed more than $1 million to Medicare for DME that was either never provided to its Medicare beneficiaries or was not medically necessary. Wijegunaratne provided Onyeabor and others with medically unnecessary power wheelchair prescriptions, and both Wijegunaratne and Morishita sold power wheelchair prescriptions to Onyeabor and others.
The evidence showed that Onyeabor and others paid Wijegunaratne and Morishita cash kickbacks for fraudulent prescriptions for DME, and Onyeabor and others used these prescriptions to bill Medicare for the power wheelchairs and other DME. Several Medicare beneficiaries testified that they were lured to medical clinics with the promise of free items such as vitamins and juice, only to receive power wheelchairs which they did not need and did not want, and were unsuccessful in their attempts to reject delivery of the power wheelchairs from Onyeabor’s supply company.
As a result of this fraud scheme, Onyeabor, Wijegunaratne and others submitted and caused the submission of approximately $1.5 million in false and fraudulent claims to Medicare and received almost $1 million on those claims.
Morishita’s sentencing is scheduled for Sept. 30, 2013.
The case is being investigated by the FBI and the Los Angeles Region of the HHS-Office of Inspector General (HHS-OIG) and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The case is being prosecuted by Assistant Chief Benton Curtis, Trial Attorneys Fred Medick and Alexander Porter of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers. To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.Martin Lloyd Old Horn 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 10, 2013, before U.S. District Judge Sam E. Haddon, MARTIN LLOYD OLD HORN, a 22-year-old resident of Hardin, was sentenced in Cause No. CR 13-28-BLG-SEH to a term of:
Prison: 6 months, concurrent with CR 13-27-BLG-SEH
Special Assessment: $100
Supervised Release: 3 years
OLD HORN was sentenced in connection with his guilty plea to federal student aid loan fraud.
In addition, OLD HORN was sentenced in Cause No. CR 13-27-BLG-SEH to a term of:
Prison: 6 months, concurrent with CR 13-28-BLG-SEH
Special Assessment: $100
Restitution: $21,820
Supervised Release: 3 years
OLD HORN was sentenced in connection with his guilty plea to mail fraud.
In Offer of Proofs filed by Assistant U.S. Attorney Carl E. Rostad, the government stated it would have proved at trial the following:
In Cause No. CR 13-27-BLG-SEH:
The Crow Tribal Historic Preservation Office (CTHPO) Is a designated office of the Crow Indian Tribe that provides for direct Tribal involvement and leadership in the protection and enhancement of Crow lands and cultural resources. It serves to identify, inventory, and protect culturally, archeologically, and historically important resources both on and off the reservation.
Each year, the CTHPO receives grant funds from the National Park Service, U.S. Department of the Interior. A requirement for any enterprise seeking to do work on the reservation that may disturb tribal lands - utilities, construction, energy exploration, development - is that the business employ the services of a CTHPO employee (archeological technician) to monitor the project to insure that lands of cultural or historic importance are not destroyed. The company is then charged for this monitoring service and payments are made to the Crow Tribe.
During the summers of 2010 and 2011, either before leaving for or while home from school at the University of Montana (UM), OLD HORN, at the urging and instigation of his mother and other family members, represented himself to be a monitor for the Crow Tribe Historical Preservation Office. He had no training for the position, had not been hired by the Crow Tribe to be a tribal monitor, and had no authority other than the direction of his family to engage in the business of being a tribal monitor.
During 2010, the evidence would have reflected that the invoices to companies for direct payment to OLD HORN, for his purported services, were submitted by his mother. During 2011, the time period alleged in the indictment, the evidence indicates that OLD HORN submitted invoices for his purported services directly. OLD HORN billed on an hourly basis and always billed for an entire day. The evidence would show that OLD HORN was usually in the company of his mother or cousin when on-site, that he made no logs or reports documenting his work or observations as required by legitimate monitoring standards, and that on numerous occasions he was not on site for the hours billed to the company. During the time period of the indictment - the two month period in the summer of 2011 - OLD HORN received $19,184.15 in compensation from companies doing business on the Crow Indian Reservation.
In addition, OLD HORN received an additional $24,477 when his mother submitted invoices on his behalf, for a total of $43,661 received on the basis of his billing for services as if a legitimate tribal monitor. The United States maintains that the fraudulent nature of the invoices remains the same whether submitted by OLD HORN or his mother. The United States and OLD HORN have stipulated to one-half of the total amount - $21,830 - as restitution and use in the fraud loss calculation based on the time and service that may have been legitimately rendered.
The companies made their payments to Martin OLD HORN through the U.S. Mail.
In Cause No. CR 13-28-BLG-SEH:
The Crow Tribal Historic Preservation Office (CTHPO) Is a designated office of the Crow Indian Tribe that provides for direct Tribal involvement and leadership in the protection and enhancement of Crow lands and cultural resources. It serves to identify, inventory, and protect culturally, archeologically, and historically important resources both on and off the reservation.
Each year, the CTHPO receives grant funds from the National Park Service, U.S. Department of the Interior. A requirement for any enterprise seeking to do work on the reservation that may disturb tribal lands - utilities, construction, energy exploration, development - is that the business employ the services of a CTHPO employee (archeological technician) to monitor the project to insure that lands of cultural or historic importance are not destroyed. The company is then charged for this monitoring service and payments are made to the Crow Tribe.
During the summers of 2010 and 2011, either before leaving for or while home from school at the University of Montana (UM), OLD HORN, at the urging and instigation of his mother and other family members, represented himself to be a monitor for the Crow Tribe Historical Preservation Office. He had no training for the position, had not been hired by the Crow Tribe to be a tribal monitor, and had no authority other than the direction of his family to engage in the business of being a tribal monitor.
Evidence would have been presented to establish that OLD HORN was a student at UM during the fall of 2011. In late October OLD HORN completed an on-line Free Application for Federal Student Aid (FAFSA), an application used by the U.S. Department of Education to determine eligibility for Pell Grants and Stafford loans, wherein he indicated that he had no earned income during the previous year. In truth, during the previous year, companies had paid OLD HORN approximately $21,600 for monitoring services based on invoices he had submitted (or which had been submitted by his mother on his behalf). Such income, if revealed, would have materially affected the decisions of the U.S. Department of Education in determining entitlement to federal aid and the level of federal aid.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that OLD HORN will likely serve all of the time imposed by the court. In the federal system, OLD HORN does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigations were conducted by the U.S. Department of Interior - Office of Inspector General.
Manhattan U.S. Attorney Announces Civil Forfeiture Complaint Against Real Estate Corporations Allegedly Involved in Laundering Proceeds of Russian Tax Refund Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), and Cyrus R. Vance, Jr., the District Attorney for New York County (“DANY”), announced today the filing of a civil forfeiture complaint against the assets of nine corporations controlling real estate in Manhattan, including four luxury residential units and two high-end commercial spaces, as well as against the assets of two related companies, and seeking the imposition of civil money laundering penalties. The Complaint filed today in Manhattan federal court alleges that these corporations laundered a portion of the proceeds of a $230 million Russian tax refund fraud scheme involving corrupt Russian officials that was uncovered by Sergei Magnitsky, a Russian lawyer who died in pretrial detention in Moscow under suspicious circumstances.
Manhattan U.S. Attorney Preet Bharara said: “Today's forfeiture action is a significant step towards uncovering and unwinding a complex money laundering scheme arising from a notorious foreign fraud. As alleged, a Russian criminal enterprise sought to launder some of its billions in ill-gotten rubles through the purchase of pricey Manhattan real estate. While New York is a world financial capital, it is not a safe haven for criminals seeking to hide their loot, no matter how and where their fraud took place.”
ICE HSI Special Agent-in-Charge James T. Hayes, Jr. said: “The complaint announced today further displays the U.S. Government's resolve in combating alleged corruption globally. ICE HSI will continue to aggressively pursue civil and criminal actions targeting those attempting to launder illicit profits.”
District Attorney Cyrus R. Vance, Jr. said: “Manhattan may have some of the most desirable real estate in the world, but it is not the place to purchase it if you are allegedly doing so with dirty money. We are very grateful to the United States Attorney’s Office for its close partnership on this matter, and pleased to have developed and referred this asset forfeiture and civil money laundering case to the federal government.”
As alleged in the Complaint and other court documents:
In 2007, a Russian criminal organization engaged in an elaborate tax refund fraud scheme resulting in a fraudulently-obtained tax refund of approximately $230 million from the Russian treasury. As part of the fraud scheme, members of the organization stole the corporate identities of portfolio companies of the Hermitage Fund, a foreign investment fund operating in Russia. The organization’s members then used these stolen identities to make fraudulent claims for tax refunds.
In order to procure the refunds, the criminal organization fraudulently re-registered the Hermitage companies in the names of members of the organization, and then orchestrated sham lawsuits against these companies. These sham lawsuits involved members of the organization as both the plaintiffs (representing sham commercial counterparties suing the Hermitage companies) and the defendants (purporting to represent the Hermitage companies). In each case, the members of the organization purporting to represent the Hermitage companies confessed full liability in court, leading the courts to award large money judgments to the plaintiffs.
The purpose of the sham lawsuits was to fraudulently generate money judgments against the Hermitage companies. Members of the organization purporting to represent the Hermitage companies then used those money judgments to seek tax refunds. The basis of these refund requests was that the money judgments constituted losses eliminating the profits the Hermitage companies had earned, and thus the Hermitage companies were entitled to a refund of the taxes that had been paid on these profits. The requested refunds totaled 5.4 billion rubles, or approximately $230 million.
Members of the organization who were officials at two Russian tax offices corruptly approved the requests within one business day, and approximately $230 million was disbursed to members of the organization, purportedly on behalf of the Hermitage companies, two days later.
After perpetrating this fraud, members of the organization undertook illegal actions in order to conceal this fraud and retaliate against individuals who attempted to expose it. After learning of the lawsuits against its portfolio companies, Hermitage retained attorneys, including Russian lawyer Sergei Magnitsky, to investigate. Magnitsky and other attorneys for Hermitage uncovered the refund fraud scheme, and the complicity of Russian governmental officials in it, and were subject to retaliatory criminal proceedings. Magnitsky was arrested and died approximately a year later in pretrial detention.
Members of the criminal organization, and associates of those members, have also engaged in a broad pattern of money laundering in order to conceal the proceeds of the fraud scheme. In a complex series of transfers through shell corporations, the $230 million from the Russian treasury was laundered into numerous accounts in Russia and other countries. A portion of the funds stolen from the Russian treasury passed through several shell companies into PREVEZON HOLDINGS, LTD., a Cyprus-based real estate corporation that is a defendant in the forfeiture action. PREVEZON HOLDINGS laundered these fraud proceeds into its real estate holdings, including investment in multiple units of high-end commercial space and luxury apartments in Manhattan, and created multiple other corporations, also subject to the forfeiture action, to hold these properties.
A chart containing the names of the companies subject to the forfeiture action and their known Manhattan real estate holdings is attached.
Mr. Bharara praised the outstanding investigative work of ICE HSI. He also thanked DANY for its assistance in the case.
This case is being handled by the Office’s Asset Forfeiture Unit. Assistant United States Attorneys Paul Monteleoni and Christine Magdo are in charge of the case.
Click here to view chart(s)
U.S. v. Prevezon et al. Exhibit B
U.S. v Prevezon et al. ComplaintMan Sentenced on Crack Cocaine ConspiracyRead the Press Release
On September 10, 2013, Percy C. Jefferson, 35, of Pembrook, Illinois, was sentenced in United States District Court in Benton on an indictment charging conspiracy to distribute crack cocaine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Jefferson, who had previously pled guilty to the crack cocaine conspiracy was sentenced to 240 months in prison, to be followed by 10 years of supervised release, and fined $300. The offense occurred between February 2003 and April 27, 2006, in Jackson and Jefferson Counties. Jefferson had been a fugitive until September 12, 2012, when he was arrested by members of the Great Lakes Regional Fugitive Task Force. Evidence at the plea and sentencing hearings established that Jefferson was involved with others in the distribution of crack cocaine in the Murphysboro area. At sentencing, the district court found that Jefferson was responsible for the distribution of 6 kilograms of crack cocaine. Eight co-defendants have previously been sentenced to prison terms ranging from 120 months - 288 months for their role in the crack cocaine conspiracy.
The investigation was part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation and was conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, Drug Enforcement Administration, United States Marshals Service, and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The case was prosecuted by Assistant United States Attorney Amanda A. Robertson.
Leader of Nationwide Cocaine Trafficking Organization Pleads GuiltyRead the Press Release
NORFOLK, Va. – Luis Alberto Navarro, 32, of Tucson, Az., pleaded guilty today to conspiring to distribute cocaine.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Karl C. Colder, Special Agent in Charge of the Drug Enforcement Administration’s Washington Field Division, and Royce E. Curtin, Special Agent in Charge of the Federal Bureau of Investigation’s Norfolk Office, made the announcement after the plea was accepted by United States District Judge Arenda L. Wright Allen. Navarro was indicted on June 5, 2013 by a federal grand jury on charges of conspiring to distribute cocaine, as well as distribution and possession of cocaine. Navarro faces a maximum penalty of Life imprisonment when he is sentenced on December 13, 2013.
In a statement of facts filed with the plea agreement, Navarro admitted to his involvement in a large-scale cocaine distribution ring from 2006 to the present. While Navarro operated the Tucson, Arizona, hub of the organization, the group had a nationwide network of distribution points, including locations in Indiana, California, New York, Pennsylvania, and here in Tidewater. Navarro recruited, supervised, and managed couriers and other members to transport and distribute cocaine and proceeds from the distribution of cocaine throughout the United States. Along with his co-conspirators, Navarro would hide the cocaine both inside the lining of coolers and inert, hollowed-out fire extinguishers in order to avoid detection during transportation.
This case was investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation and is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation dubbed Fire & Ice.
Assistant United States Attorneys V. Kathleen Dougherty and Kevin M. Comstock are prosecuting 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.Lancaster Man Faces up to 20 Years in Federal Prison for Transporting and Shipping Child PornographyRead the Press Release
DALLAS — Meliton Torres, 31, of Lancaster, Texas, pleaded guilty this morning, before U.S. Magistrate Judge Paul D. Stickney, to one count of transporting and shipping child pornography. He faces a maximum statutory sentence of not less than five or more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Torres, who will remain on bond, is scheduled to be sentenced on December 18, 2013, by U.S. District Judge Ed Kinkeade. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to plea documents filed in the case, Torres admitted using the Internet and file-sharing software to share and transmit images and video files of minors engaged in sexually explicit conduct. In March 2012, an officer with the Dallas Police Department’s Internet Crimes Against Children (ICAC) Unit, working online in an undercover capacity, downloaded images and videos from Torres’s shared files. On March 16, 2012, the Dallas Police Department executed a search warrant at Torres’s residence and seized computers and computer media, which were then analyzed by the North Texas Regional Computer Forensics Lab. More than 200 images and videos of child pornography were on the seized media. Of those, 23 images and 18 videos depicted victims who have been identified.
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 the Dallas Police Department’s ICAC and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Kirtland, N.M., Man Pleads Guilty to Federal Sexual Assault ChargeRead the Press Release
ALBUQUERQUE – Hareldo Horse, 31, an enrolled member of the Navajo Nation who resides in Kirtland, N.M., pleaded guilty this morning to an indictment charging him with sexual assault under a plea agreement with the U.S. Attorney’s Office.
Horse was arrested on March 11, 2013, on an indictment charging him with sexually assaulting a woman in a location within the Navajo Indian Reservation on Oct. 20, 2012. He has been in federal custody since that time. During his plea hearing this morning, Horse pleaded guilty to the indictment and admitted inappropriately touching the victim’s genitals at a time when the victim was physically in capable of declining to participate in the sexual act.
Horse remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Horse faces a maximum penalty of life imprisonment. Horse also will be required to register as a sex offender.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.KC Man Sentenced to Life in Prison for Child Sex Trafficking, Producing Child PornRead the Press Release
Human Trafficking Rescue Project
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for child sex trafficking and producing child pornography, which was discovered during an investigation into an extortion and blackmail scheme.
Corey M. McKinney, also known as “Chef FireFlame Corey,” 37, of Kansas City, was sentenced by U.S. District Judge Greg Kays to life in federal prison without parole. This is the first human trafficking case prosecuted in the Western District of Missouri that has resulted in a life sentence.
On Jan. 16, 2013, McKinney pleaded guilty during the second day of his trial. McKinney admitted that he had sexually exploited a child victim, identified in court documents as “CV,” on numerous occasions since she was 14 years old. McKinney, who was the legal guardian of CV, admitted that he used computers and video equipment to record sexual activity between himself and CV. McKinney also admitted that he caused CV to engage in prostitution as part of an extortion and blackmail scheme.
On March 24, 2011, McKinney was hiding in the bedroom closet while CV was having sex with a man identified in court documents as “John Doe.” John Doe had just met CV, whom he believed to be 17 years old, on Facebook the day before. McKinney secretly recorded the sexual encounter on his cell phone and on a nearby computer.
John Doe returned to the apartment the next day to have sex again. McKinney burst into the room, asking John Doe if he knew how much trouble he could get into because his “sister” was only 16 years old. John Doe did not know that the girl was actually 16 years old, or that McKinney had recorded the earlier illicit encounter. He did not know that the 16-year-old girl was not actually McKinney’s sister, but rather was a former neighbor that McKinney himself – a 34-year-old man at the time, a few years older than John Doe – had been exploiting sexually.
After demanding $500 in exchange for not exposing John Doe to his family, friends, employer, or the authorities, McKinney made John Doe go with him to a nearby ATM to get some form of this payment. John Doe was only able to pay $100 at that time and McKinney demanded that he pay the balance in the next few days.
After this encounter, John Doe received a flurry of text messages from McKinney, who made threats and demanded money. McKinney claimed he sent the video file to a friend who worked at a local news agency. He also attempted to confront John Doe by arriving unannounced at his home. After numerous texts and an attempted in-face confrontation, John Doe approached the authorities and advised them of the extortion attempts. The text message threats from McKinney continued, and soon John Doe learned that McKinney was posting information about him and his wife on his Facebook page. Eventually, an exchange was arranged (through the direction of the Kansas City Police Department) to pay the remainder of the money in exchange for a USB drive with the video on it.
On April 7, 2011, McKinney was arrested at DeVry University in Kansas City, Mo. (where he was a student) after he exchanged a USB drive containing the video for money that he had been demanding from John Doe. Evidence uncovered during the investigation included various videos and images constituting child pornography with McKinney engaged in sexual activity with the same child victim. When investigators searched the minor’s cell phone, they found several sexually explicit photos of McKinney and the minor as well as sexually explicit photos of John Doe and the minor.
McKinney admitted that while he was incarcerated after his arrest he called the child victim dozens of times in repeated efforts to get her to recant her prior statements and testimony and persuade her to submit a statement on his behalf in the hopes of getting the charges against him dismissed.
This case was prosecuted by Assistant U.S. Attorneys Patrick D. Daly and Brian P. Casey. It was investigated by the Kansas City, Mo., Police Department and the FBI in conjunction with the Human Trafficking Rescue Project.Iowa Couple and Nevada CPA Indicted on Charges of Conspiring to Defraud the IRSRead the Press Release
LAS VEGAS, Nev. - A couple from Iowa and a Nevada accountant were charged today with conspiring to defraud the IRS of over $700,000 through a scheme in which they allegedly used nominee corporations and nominee bank accounts to hide their income and other assets, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Darlene Taylor McCord and James Bert McCord, of Iowa City, Iowa, and Wendell Leroy Waite, of Las Vegas, are charged with one count of conspiracy to defraud the United States. Waite is also charged with one count of income tax evasion and four counts of aiding in the preparation and filing of false and fraudulent federal tax returns. Darlene and James McCord are also charged with four counts of making and subscribing false and fraudulent federal individual and corporate tax returns, one count of making a false financial condition statement, and nine counts of attempting to evade or defeat the payment of their federal taxes, penalties and interest.
The defendants are scheduled to make initial appearances before a federal magistrate judge in Las Vegas on Thursday, Sept. 19, 2013, at 3:00 p.m. If convicted, they face up to five years in prison and a $250,000 fine on the conspiracy and tax evasion charges, and up to three years in prison and a $250,000 fine on the false or fraudulent tax return charges.
According to the indictment, Darlene and James McCord were the owner of several Nevada corporations, TOB Management, Inc. Que 1, Inc., and HTR Group, Inc. Waite was a licensed Certified Public Accountant in Nevada, California, and Utah, who resided and worked in Nevada.
On June 23, 2003, the McCords allegedly owed the IRS approximately $197,420 in personal income taxes, and owed an additional IRS Trust Fund Recovery Penalty of approximately $547,788. From approximately May 2004 through February 2008, the McCords received personal income of over $2.7 million. Waite was associated with the Asset Protection Group, Inc., (APG) whose primarily function was to offer services to individuals who were trying to hide their assets from creditors, including the IRS, through the use of nominee corporations, nominee bank checking accounts, and “friendly liens” designed to create the illusion that a person’s assets were encumbered by liens. Beginning in about November 2004, the McCords deposited about $2.7 million into an APG bank escrow account and/or into one of their corporate accounts, allegedly for the purpose of hiding the money from the IRS. In about February 2005, APG allegedly referred the McCords to Waite for accounting and tax purposes and over the next two years, Waite filed multiple fraudulent federal tax returns for the McCord’s and their nominee corporations concealing their true income and assets.
The case is being investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney J. Gregory Damm.Houston Mom and Son Donut Shop Owners Charged with Witness TamperingRead the Press Release
HOUSTON – Kim Hout Lor, 66, and Bun Vireak Long, 19, have been taken into custody on charges of tampering with witnesses in a pending official proceeding, announced United States Attorney Kenneth Magidson today. Lor is also charged with making false statements.
The indictment, returned Aug. 20, 2013, was unsealed upon their arrests this morning. They are expected to make an initial appearance before U.S. Magistrate Judge George Hanks this afternoon, but potentially as early as 10:00 a.m. this morning.
According to allegations, the mother and son operated a donut shop in Porter called Pat’s Donuts, Kolaches & Tacos which had been under an investigation by the Department of Labor (DOL)-Wage and Hour Division for allegedly not properly compensating its work force.
Lor allegedly withheld information from investigators about undocumented aliens under her employment, the total number of employees she employed as well as the number of hours her employees worked, according to the indictment. Additionally, Lor and Long allegedly contacted witnesses and undocumented aliens they employed during the pending investigation to intimidate, threaten or corruptly persuade them in an effort to influence or prevent their testimony to DOL investigators.
If convicted of the witness tampering charges, Lor and Long face a possible 20 years in federal prison as well as a possible $250,000 fine. Additionally, Lor could face another five years if convicted of making false statements and another $250,000 fine.
The case is being investigated by the FBI and DOL-Office of Inspector General and is being prosecuted by Assistant U.S. Attorneys Celia Moyer and Joseph Magliolo.An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Guilty Pleas Entered in Connection with String of Hobbs Act Robberies in Southeastern New MexicoRead the Press Release
ALBUQUERQUE – Rance Williams, 23, and Maurice Williams, 35, both of Carlsbad, N.M., entered guilty pleas this afternoon in federal court in Las Cruces to violating the Hobbs Act by robbing businesses engaged in interstate commerce. The guilty pleas were announced by Acting U.S. Attorney Steven C. Yarbrough, 5th Judicial District Attorney Janetta Hicks, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, Chief Daniel Fierro of the Carlsbad Police Department, Chief Don Raley of the Artesia Police Department, and Chief Chris McCall of the Hobbs Police Department.
Rance Williams, Maurice Williams and four other Carlsbad residents, Bennie Juarez, 27, Logan Magby, 19, Mario Muro, 23, and Tyler Williams, 19, were charged with violations of the Hobbs Act in a criminal complaint filed on May 29, 2013. The criminal complaint charged the six men, acting in groups, with robbing the following five commercial businesses in southeastern New Mexico between Nov. 2012 and Jan. 2013:
- The Family Dollar located at 403 W. Quay Street in Artesia, N.M., by Bennie Juarez and Maurice Williams on Nov. 15, 2012.
- The Shop-N-Go located at 22212 W. Lea Street in Carlsbad by Bennie Juarez and Rance Williams on Nov. 28, 2012.
- The Family Dollar located at 901 W. Mermod Street in Carlsbad by Bennie Juarez and Maurice Williams on Dec. 2, 2012.
- The Dollar General located at 730 N. Dal Paso in Hobbs, N.M., by Bennie Juarez, Rance Williams and Tyler Williams on Dec. 9, 2012.
- The Domino’s Pizza located at 302 S. 1st Street in Artesia by Bennie Juarez, Mario Muro, Logan Magby and Tyler Williams on Jan. 6, 2013.
The criminal complaint alleged that each of the robberies was committed by perpetrators who wore masks or covered their faces with bandanas and brandished firearms at the store employees.
During today’s proceedings, Rance Williams entered a guilty plea to a two-count felony information charging him with conspiracy to rob the Shop-N-Go in Carlsbad on Nov. 28, 2012, and conspiracy to rob the Dollar General in Carlsbad on Dec. 2, 2012, under a plea agreement with the U.S. Attorney’s Office. Maurice Williams entered a guilty plea to a two-count felony information charging him with conspiracy to rob the Family Dollar in Artesia on Nov. 15, 2012, and conspiracy to rob the Family Dollar in Carlsbad on Dec. 2, 2012, without the benefit of a plea agreement. At sentencing, Rance Williams and Maurice Williams each face a maximum penalty of 20 years in prison on each count of conviction. The two men were remanded into custody after entering their guilty plea and will be detained pending their sentencing hearings, which have yet to be scheduled.
Two other men, Juarez and Magby, previously entered guilty pleas under plea agreements with the U.S. Attorney’s Office. Juarez entered a guilty plea on Aug. 20, 2013, to a felony information charging him with five counts of conspiracy to violate the Hobbs Act by robbing each of the five businesses numerated above. Juarez was remanded into custody after entering his guilty plea. Magby entered a guilty plea on Sept. 3, 2013, to a one-count felony information charging him with conspiracy to rob the Domino’s Pizza in Artesia on Jan. 6, 2013. Juarez and Magby each face a maximum penalty of 20 years in prison for each count of conviction; their sentencing hearings have yet to be scheduled.
Muro and Tyler Williams have entered not guilty pleas. The charges against them are merely accusations and they are presumed innocent unless they are found guilty beyond a reasonable doubt by a court of law. Muro is scheduled for a change of plea hearing on Sept. 13, 2013, and Tyler Williams is pending trial, which has not yet been scheduled.
These cases were brought as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
These cases were investigated by the Roswell office of the FBI, Carlsbad Police Department, Artesia Police Department and Hobbs Police Department, with assistance from the 5th Judicial District Attorney’s Office. The cases are being prosecuted by Assistant U.S. Attorneys Luis A. Martinez and Edwin Garreth Winstead III of the U.S. Attorney’s Las Cruces Branch Office.
Goodwin Announces Former Massey Executive Sentenced to 42 Months in Prison for Federal Mine Safety ViolationsRead the Press Release
Longtime Massey division president is highest-ranking official convicted in ongoing federal investigation; Sentence is one year above the top of federal advisory guidelines range
BECKLEY, W.Va. – United States Attorney Booth Goodwin today announced that a longtime Massey Energy Company executive was sentenced to 42 months in prison followed by 3 years of supervised release for two federal crimes in connection with an ongoing investigation of practices at Massey. David Hughart, 54, of Crab Orchard, West Virginia, is the former president of Massey’s Green Valley Resource Group and the highest-ranking official to be convicted in the ongoing federal investigation. Hughart’s sentence is one year above the top of federal advisory guidelines range. Hughart previously pleaded guilty in February to two federal charges: conspiracy to impede the Mine Safety and Health Administration (MSHA) and conspiracy to violate mine health and safety laws.
“Mine safety laws exist to protect the health and safety of coal miners. When those laws are broken, miners' lives are put in danger. That's absolutely intolerable," said U.S. Attorney Booth Goodwin. "This prosecution reiterates the message that mine safety laws are never, ever optional."
Hughart admitted that he and others at Massey conspired to violate health and safety laws and to conceal those violations by warning mining operations when MSHA inspectors were arriving to conduct mine inspections.
Hughart is the highest-ranking mine official ever convicted of conspiracy to impede MSHA or conspiracy to violate mine health and safety standards.
Coal mines in the United States are subject to an array of mandatory federal mine health and safety standards designed to prevent dangers such as explosions, roof collapses, and fires. MSHA conducts frequent, unannounced mine inspections to monitor compliance with those requirements. When MSHA inspectors find violations of health and safety requirements, mine owners are subject to monetary penalties and, in some cases, production shutdowns until violations are corrected.
The investigation was conducted by the Federal Bureau of Investigation, the Department of Labor Office of Inspector General, and the Internal Revenue Service's Criminal Investigation arm. Alpha Natural Resources, Inc., which acquired Massey’s operations in a June 2011 merger, is continuing to cooperate with the investigation.
The sentence was handed down by United States District Judge Irene C. Berger in federal district court in Beckley.
Counsel to the United States Attorney Steven Ruby handled the prosecution.
Former Teacher, Logan Storm, Sentenced to Prison for Possessing Child Pornography and Failing to Appear in CourtRead the Press Release
PORTLAND, Ore. – Logan Storm, a former teacher at Stoller Middle School in Beaverton, Oregon, will spend eight years in prison for possessing child pornography and failing to appear in court the day after a federal jury convicted him of the child pornography offense in January. At a sentencing hearing this morning, United States District Judge Michael H. Simon sentenced Storm, 37, to 84 months in prison in the child pornography case, and to a consecutive term of 12 months in prison for failing to appear for a detention hearing the day after the jury returned their guilty verdict in the pornography case. Upon release from prison, Storm will be subject to a 10 year term of supervised release with stringent conditions, including prohibitions on associating with minors, and restrictions on his use of computers. Storm will also be required to participate in sex offender treatment, and must register as a sex offender.
The investigation began in July 2010 when Storm’s then-girlfriend discovered images of child pornography on his laptop computer and on a thumb drive he had hidden in their bedroom, and reported it to the police. The Multnomah County Child Abuse Team served a search warrant at Storm’s residence and seized the laptop and two thumb drives from Storm’s bedroom, while Storm’s minor son was sleeping across the hall. Storm fled the country the following day, without saying good-bye to family or friends. He drove to Canada then flew to Europe, where he remained for more than six months.
Meanwhile, forensic examinations revealed images of child sexual abuse on the computer and both thumb drives. Many of the images were interspersed in Power Point presentations with graphic cartoons of child sexual abuse, child erotica, and non-pornographic, classroom photographs of his former students at Stoller Middle School.
Storm was originally charged with a number of offenses in the Multnomah County Circuit Court. He eventually returned to the United States to face those charges. The state charges were later dismissed in favor of this federal prosecution.
Storm was convicted in federal court on January 29, 2013, after a five day jury trial. He was allowed to remain out of custody pending a detention hearing the following morning. Later that evening, however, Storm cut off an electronic monitoring bracelet and fled once again, failing to appear as required at the detention hearing. An international manhunt ensued – for the second time.
Approximately six weeks later, Storm was apprehended in Mexico City, Mexico. He initially denied his identity. Eventually, however, Storm was deported to the United States and returned to Oregon, where he was detained on a new indictment for failure to appear, and in the child pornography case. He later pled guilty to the failure to appear charge. He was sentenced this morning in both cases.
In imposing the sentences, Judge Simon said that while Storm had many positive characteristics and traits, it was “quite clear” that he “does not accept responsibility for his conduct.” The judge had “no doubt” that the jury reached the “correct factual decision” when it found Storm guilty, yet Storm continues to blame others for his own unlawful conduct. Judge Simon also discussed the serious nature of the offense: “All child pornography offenses, including possession, are extremely serious because they result in perpetual harm to the victims, and validate and normalize the sexual abuse of children.” The victims, Judge Simon said, are “victimized over and over and over again” when offenders trade in and possess images of their sexual torture.
Judge Simon commended the U.S. Marshals Service for locating and apprehending Storm after he fled to Mexico: “The U.S. Marshals Service consists of brave, dedicated, thorough public servants who ensure if someone flees, they will be caught.” Judge Simon told Storm to think about the extra time he will be serving because he fled. He also urged Storm to recognize that he has a problem, and to seek treatment for it while incarcerated.
U.S. Attorney Amanda Marshall praised the sentence imposed on Storm, noting that it reflected the serious and troubling nature of Storm’s criminal conduct. “Logan Storm was a middle school teacher when he committed this offense,” she said. “He intermingled classroom photos of the very children he was entrusted with teaching into slide shows containing images of child sexual abuse and exploitation.” Storm’s offense was “particularly egregious,” she added, because “he twice fled the country, once shortly after officers served a search warrant at his house, and again only hours after the jury convicted him.”
Marshall praised the collaborative efforts of the local and federal law enforcement agencies responsible for the investigation and prosecution of the child pornography offense, and the efforts of the U.S. Marshals Service and authorities in Mexico in tracking and locating Storm after he fled the country. “Justice was delayed,” she said, but “ultimately it prevailed.” She hoped Storm’s sentence “sends a clear message to those who seek gratification in the sexual exploitation of children,” as well as those “who believe they can flee from justice.”
“The children of Oregon are safer with Logan Storm in prison,” said Brad Bench, special agent in charge of HSI Seattle, who oversees Oregon investigations. “HSI will continue to aggressively target those who prey upon and sexually exploit our children. We owe it to the young victims whose abuse is perpetuated by offenders around the world who collect and trade child pornography.”
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 U.S. Department of Justice and led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation involved the cooperation and participation of the Portland Police Bureau, the Multnomah County Child Abuse Team, the Northwest Regional Computer Forensics Laboratory, the U.S. Department of Homeland Security/Homeland Security Investigations, the Multnomah County District Attorney’s Office, and the United States Attorney’s Office. The case was prosecuted by Assistant United States Attorneys Jane Shoemaker and Gary Sussman.
Former Rennselaer Corrections Officer Pleads Guilty to FelonyRead the Press Release
Instructed Restaurant Employees to Make False Statements to Federal Agents
ALBANY, NEW YORK – Former Rennselaer County Jail Corrections Officer Mark A. Piche, 44, of Poestenkill, New York, pled guilty yesterday before Chief United States District Judge Gary L. Sharpe to corruptly endeavoring to obstruct the due administration of the internal revenue laws announced United States Attorney Richard S. Hartunian; Special Agent-in-Charge Toni M. Weirauch, Internal Revenue Service, Criminal Investigation, New York Field Office; and Lieutenant John D. Durling, Special Investigations Unit Albany, New York State Police. Sentencing is scheduled for January 6, 2014 at 11:00 a.m. Piche faces up to three years in prison, a $5,000 fine, one year of supervised release, and a $100 special assessment.
According to the plea agreement, between 2007 and 2011, Piche caused his restaurant, Red Front LLC in Troy, New York, to file false quarterly returns with the Internal Revenue Service. Those false returns underreported the Federal Insurance Contributions Act taxes owed by Red Front as follows: $4,460.64 in 2007, $4,469.28 in 2008, $5,704.07 in 2009, $7,873.80 in 2010, and $6,777.75 in 2011. In addition, after learning that he was a target of a federal investigation, from December 15, 2011 through June 20, 2012, Piche instructed Red Front employees to make false statements to Internal Revenue Service (“IRS”) Criminal Investigation Division special agents conducting the criminal investigation. Specifically, Piche instructed Red Front employees to state falsely that Red Front had accurately reported and withheld taxes due on its employees’ wages, when as he knew, Red Front had fraudulently underreported employee wages from 2007 through 2011. When Piche instructed Red Front employees to make these false statements, he was trying to prevent the IRS from obtaining evidence that Red Front had fraudulently underreported its employees’ wages on its quarterly returns.
This case was investigated by the Internal Revenue Service, Criminal Investigation and the Albany Special Investigations Unit of the New York State Police. This case is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
Former Preschool Teacher David Moe Sentenced to Federal Prison for Distribution of Child PornographyRead the Press Release
DENVER – Former Paddington Station preschool teacher David Moe, age 46, of Denver, was sentenced today by U.S. District Court Judge William J. Martinez to serve 96 months in federal prison for distribution of child pornography, United States Attorney John Walsh and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Kumar Kibble announced. Following his prison sentence, Judge Martinez ordered Moe to spend 10 years on supervised release. Moe was also ordered to pay restitution of $5,000 each to three victims who filed requests with the court. He will also be required to register as a sex offender. Moe, who appeared at the sentencing hearing in custody, was remanded at the hearing’s conclusion.
According to court documents, including the stipulated facts contained in the plea agreement, on May 4, 2012, a detective with the Loveland Police Department, who is a member of the Internet Crimes Against Children (ICAC) Task Force, while working in an undercover capacity, logged on to the Internet and accessed a peer-to-peer file sharing program. The undercover detective attempted to download a digital file believed to contain child pornography from a remote host computer. The detective was able to connect directly to the remote host computer and the requested file was placed in queue. He remained in queue to receive the file until May 6, 2012, when the connection was terminated. The detective was unable to complete the download.
Using investigative techniques, the detective was able to determine that the defendant was offering a child pornography file for distribution. It was later determined that the Internet Protocol (IP) address offering the child pornography file for distribution resolved to Moe’s residence in Denver, Colorado. A federal search warrant was obtained by HSI and was executed on July 24, 2012. During the execution of the search warrant, items containing child pornography were seized, including two desktop computers, numerous external hard drives, and 383 CDs and DVDs. All of the items seized by HSI belonged to the defendant.
During the execution of the warrant, agents learned from the defendant that he had been a teacher at Paddington Station preschool for the last 18 years. At the time of the search warrant, Moe taught Cultural Rhythms/Enrichments (3 to 5 year olds) and had been the Director of Enrichments and Before and After School Care programs since 2005.
A forensic examination was conducted of the defendant’s computers, external hard drives, CDs and DVDs. Evidence of distribution and receipt of child pornography was found on the defendant’s two computers and an external hard drive. Evidence of child pornography possession was found on the defendant’s computers, external hard drives, and 383 CDs and DVDs. At least 800,000 child pornography/erotica images and over 13,000 child pornography/erotica videos were located on the defendant’s computers and computer media, including the video that had been made available to the undercover detective in May 2012.
A forensic examination reflected that the child pornography possessed by the defendant was well organized and archived. The examination revealed that the defendant possessed child pornography for at least 10 years. Further, the examination revealed that the defendant distributed and received child pornography since at least 2007. The defendant’s child pornography collection included pornographic depictions of children as young as toddlers.
As described in the plea agreement, a forensic examination was conducted on the defendant’s computers and computer media. All images and videos of child pornography recovered during forensic examination were provided to the National Center for Missing and Exploited Children (NCMEC). A thorough review of all of the images and videos possessed by the defendant reflected no evidence that the defendant himself created or produced child pornography. Today he pled guilty to distributing existing child pornography.
“The conduct the defendant was sentenced for today is reprehensible,” said U.S. Attorney John Walsh. “Moe spent 10 years collecting nearly 2,000,000 images of children engaged in explicit sexual conduct, all the while working as a preschool teacher. The U.S. Attorney's Office will continue to work with determination to protect children, and to combat the market for child pornography that Defendant Moe so extravagantly helped to fuel.”
“The predator’s market for sharing child pornography is built by people like David Moe who possessed more than a million explicit images of children being sexually abused,” said Kumar C. Kibble, special agent in charge of HSI Denver. “Our HSI special agents routinely work with our law enforcement partners to remove these predators from civil society.”
This case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI).
Moe was prosecuted by Assistant U.S. Attorney Alecia Riewerts Wolak.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
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Former Owner of Adult Entertainment Businesses Charged with Tax FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Anthony Andreozzi, of Delray Beach, was charged in a one count Information with conspiring to defraud the lawful functions of the Internal Revenue Service (IRS), in violation of Title 18, United States Code, Section 371. Defendant Andreozzi made his initial appearance in federal court today before U.S. Magistrate Judge Dave Lee Brannon.
According to the charges, Andreozzi owned and operated F & A Concepts, Inc. and Galaxy Communications, Inc., which were adult entertainment businesses incorporated in the State of Florida. Andreozzi conspired with another to unlawfully enrich himself by engaging in a fraudulent scheme to evade the payment of federal income taxes. As alleged in the Information, Andreozzi diverted corporate receipts of both corporations for his own personal use. In order to conceal his diversion of corporate funds, Andreozzi instructed his co-conspirator to falsify the corporate books and records by classifying his personal expenditures as business expenses. Defendant Andreozzi and his co-conspirator caused the preparation and filing of false corporate tax returns for F & A Concepts, Inc. and Galaxy Communications, Inc. and false personal income tax returns for defendant Andreozzi for 2006, 2007, 2008 and 2009, in that the corporate returns included fraudulent business expenses and the personal returns failed to include the diverted corporate income, thereby understating the defendant’s total income and tax due and owing on his personal returns.
If convicted, Andreozzi faces a maximum statutory sentence of up to five years in prison.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Stephanie D. Evans.
An Information is only an accusation, and the defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Machesney Park Man Charged with Bankruptcy FraudRead the Press Release
ROCKFORD — A former Machesney Park, Ill. man was indicted today by a federal grand jury in Rockford on charges of bankruptcy fraud. ROBERT J. YONKEE, JR., 54, now of Lake Geneva, Wisconsin, filed a Chapter 7 Bankruptcy Petition on September 15, 2008. The indictment alleges that Yonkee fraudulently concealed property from the bankruptcy trustee, creditors, and the United States Trustee, including his ownership interest in: a business that sold auto parts, automobiles, and motorcycles; the United States Super Truck Racing Series; Bobby Yonkee Racing; as well as other inventory, merchandise, capital, vehicles, and motorcycles. The indictment further charges that Yonkee made false statements on a bankruptcy schedule and a Statement of Financial Affairs, both of which were filed under penalty of perjury. In addition, Yonkee was charged with making material false statements under oath in a bankruptcy proceeding during a meeting of creditors.
Each charge in this case carries a maximum penalty of 5 years’ imprisonment, and a fine of up to $250,000, or twice the gross gain or gross loss resulting from that offense, whichever is greater. The judge may also impose a sentence of probation of one to five years, and a term of supervised release of up to three years. The actual sentence will be determined by the United States District Court, guided by the Sentencing Guidelines.
The indictment was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Robert J. Shields, Jr., Acting Special Agent-In-Charge of the Chicago Office of Federal Bureau of Investigation.
Members of the public are reminded that a criminal indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt of the defendant beyond a reasonable doubt.
The government is being represented by Assistant U.S. Attorney Michael D. Love.
Indictment
Former Lorain County Corrections Officer Pleads Guilty to Assaulting an InmateRead the Press Release
A former Lorain County, Ohio corrections officer pleaded guilty today to one count of deprivation of rights under color of law, announced Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division, Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
According to court documents, Marlon Tayor, 47, of Vermilion, Ohio, assaulted an inmate by striking him repeatedly while working as a corrections officer in the Lorain County Jail.
These actions caused bodily injury to the inmate and deprived the inmate of the right to be free from cruel and unusual punishment, according to court documents.
“We in the Civil Rights Division are committed to working with our partners in the U.S. Attorney’s Office and the FBI to identify, and where appropriate, prosecute instances of law enforcement abuse,” said Acting Assitant Attorney General Samuels.
“The vast majority of law enforcement officials do a great job,” said U.S. Attorney Dettelbach said. “When someone abuses the power and privileges of their office, however, they can and will be held accountable.”
“The acknowledgment of excessive force exhibited by a fellow officer in law enforcement is disconcerting,” said Special Agent in Charge Anthony. “The public should be reminded that the vast majority of those serving within the criminal justice system do so with honor and integrity. Any allegation of abuse or excessive force involving law enforcement officers takes on a particular sense of urgency and will continue to be a priority for the FBI.”
Taylor is scheduled to be sentenced on Dec. 19, 2013.
This investigation was conducted by the FBI’s Cleveland Office. The case is being prosecuted by Assistant U.S. Attorneys Antoinette T. Bacon and Lauren Bell and Civil Rights Division Trial Attorney Betsy Biffl.
Former Lorain County Corrections Officer Pleads GuiltyRead the Press Release
A former Lorain County corrections officer pleaded guilty today to one count of deprivation of rights under color of law, said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division, Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office.
Marlon Taylor, 47, of Vermilion, was working as a corrections officer in Lorain County Jail on July 29, 2012, when he assaulted an inmate by striking him repeatedly, according to court documents.
These actions caused bodily injury to the inmate and deprived the inmate of the right to be free from cruel and unusual punishment, according to court documents.
“The vast majority of law enforcement officials do a great job,” Dettelbach said. “When someone abuses the power and privileges of their office, however, they can and will be held accountable.”
“We in the Civil Rights Division are committed to working with our partners in the U.S. Attorney’s Office and the FBI to identify, and where appropriate, prosecute instances of law enforcement abuse,” said Acting Assitant Attorney General Samuels.
“The acknowledgment of excessive force exhibited by a fellow officer in law enforcement is disconcerting,” Anthony said. “The public should be reminded that the vast majority of those serving within the criminal justice system do so with honor and integrity. Any allegation of abuse or excessive force involving law enforcement officers takes on a particular sense of urgency and will continue to be a priority for the FBI.”
Taylor is scheduled to be sentenced on Dec. 19.
This investigation has been conducted by the FBI’s Cleveland Office. Assistant U.S. Attorneys Antoinette T. Bacon and Lauren Bell and Trial Attorney Betsy Biffl will prosecute the case.
Former Cox Employees Charged with EmbezzlementRead the Press Release
Two Employees Allegedly Diverted Funds to Their Personal Bank Accounts
ATLANTA - Joysha Flucker has been arraigned on charges in an indictment that a federal grand jury returned on May 21, 2013, for allegedly stealing over $900,000 from Cox Communications.
“Those who shamelessly steal from their employer should expect to be held accountable,” said United States Attorney Sally Quillian Yates. “Companies must be able to trust their employees, especially when those employees are entrusted with handling money. The charges against these defendants reflect that they violated the law as well as their employer’s confidence.”Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The federal indictments of these two former Cox employees represent the FBI’s commitment to partner with and provide assistance to the corporate sector. Those individuals who engage in such wide spread and high dollar thefts run the very real risk of becoming targets in a federal investigation.”
According to United States Attorney Yates, the charges and other information presented in court: Joysha Flucker, 36, of Decatur, Ga., and Sakia Allen, 38, of Jonesboro, Ga., previously worked for Cox Communications, where they had access to the company’s electronic invoicing system that tracked the company’s payments to various third parties. Flucker and Allen manipulated the electronic invoicing system so that Cox Communications would issue duplicate payments to the third parties. However, the duplicate payments were directed into bank accounts under the control of the defendants. As a result of the defendants’ actions, Cox Communications suffered losses of at least $943,865.46.
Flucker was arraigned before United States Magistrate Judge Russell G. Vineyard today on the charges and was detained. Allen previously entered a plea of guilty to one count of wire fraud on July 25, 2013, before United States District Judge William S. Duffey, Jr.
The indictment charges the defendants with multiple counts of wire fraud and one count of conspiracy. Each wire fraud count carries a maximum sentence of 20 years in prison and the conspiracy count carries a maximum sentence of 5 years in prison. Each count also carries a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
The United States is also seeking the forfeiture of all funds derived from this scheme. The United States previously forfeited a house and luxury automobiles as proceeds of the alleged offense.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation with the assistance of the Sandy Springs Police Department.Assistant United States Attorneys Mary F. Kruger and Thomas J. Krepp are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Final Defendants Sentenced in $900,000 Kick-Back SchemeRead the Press Release
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the last two defendants have been sentenced in federal court for their role in a nearly $900,000 bid-rigging scheme that involved several contractors.
Thomas Villirillo, 49, of Olathe, Kan., and Jaime Grimsley, 33, of Overland Park, Kan., were each sentenced by U.S. District Judge Gary A. Fenner on Monday, Sept. 9, 2013, to five years of probation. The court also ordered Villirillio to pay $105,560 in restitution and Grimsley to pay $79,167 in restitution.
On Jan. 3, 2013, Villirillo pleaded guilty to participating in a conspiracy to commit mail fraud. Villirillo was the owner of Reliable Construction, which fulfilled construction contracts for CRES Management. Between June 2008 and May 2009, Villirillo conspired to pay approximately $105,560 in kickbacks to co-conspirators Christopher Grimsley, 43, of Overland Park (Jaime Grimsley’s husband), and Jo Den Napper, 40, of Lenexa, Kan.
Christopher Grimsley and Napper were directors of construction for Aimco (and, later, CRES Management) and in charge of procuring bids for renovating apartment complexes. In exchange for these kickbacks, Christopher Grimsley and Napper agreed to rig bids in Villirillo’s favor without the knowledge of Aimco or CRES Management. Among other things, Villirillo used his credit card to pay for hotel accommodations in Las Vegas for Grimsley and his wife, Jaime Grimsley, in exchange for granting his bids to complete construction work.
On May 2, 2013, Jaime Grimsley pleaded guilty to filing false tax returns. Jaime Grimsley formed Geronimo Consultants in 2004, which she admitted was used to deposit kickback payments to her husband, Christopher Grimsley, from various building contractors. Between 2005 and 2008, the Grimsleys filed false tax returns omitting kickback income of $217,981, for a tax loss of $79,167.
Christopher Grimsley was sentenced on March 28, 2011, to 41 months in federal prison without parole and ordered to pay $538,340 in restitution after pleading guilty to mail fraud. Between May 2003 and May 2009, Christopher Grimsley accepted approximately $538,340 in kickbacks from various contractors in the Kansas City area. In exchange for these kickbacks, he agreed to rig bids in favor of the contractors without the knowledge of Aimco.
Napper, who pleaded guilty to mail fraud, was sentenced on Aug. 28, 2013, to one year and one day in federal prison without parole. Between August 2004 and May 2009, Napper accepted approximately $355,749 in kickbacks from various contractors. In exchange for these kickbacks, Napper agreed to rig bids in favor of the contractors without the knowledge of CRES Management.
Tim Rowland, 45, of Platte City, pleaded guilty to his role in the mail fraud conspiracy and was sentenced on March 30, 2013 to five years of probation and ordered to pay $298,765 in restitution. Rowland was the owner of ATNJ, a construction company that fulfilled contracts for Aimco Apartment Management. Between November 2004 and May 2009, Rowland conspired to pay approximately $298,765 in kickbacks to Christopher Grimsley and Napper.
Chris Childers, 44, of Olathe, Kan., pleaded guilty to his role in the mail fraud conspiracy and was sentenced on July 23, 2013, to one year of probation and ordered to pay $179,570 in restitution. Childers was the owner of All State Renovations, which fulfilled construction contracts for CRES Management. Between May 2004 and April 2009, Childers conspired to pay approximately $179,570 in kickbacks to Grimsley and Napper. In exchange for these kickbacks, they agreed to rig bids in Childers’s favor without the knowledge of CRES Management.
Bernie Belcher, 57, of Olathe, Kan., pleaded guilty to his role in the mail fraud conspiracy and was sentenced on July 30, 2013, to five years of probation and ordered to pay $201,223 in restitution. Belcher was the owner of All State Roofing, which fulfilled construction contracts for Aimco Apartment Management. Between May 2003 and May 2009, Belcher conspired to pay approximately $201,224 in kickbacks to Grimsley and Napper. In exchange for these kickbacks, they agreed to rig bids in Belcher’s favor without the knowledge of Aimco.
These cases were prosecuted by Assistant U.S. Attorneys Linda Parker Marshall and William L. Meiners. They were investigated by the Environmental Protection Agency and the U.S. Department of Housing and Urban Development, Office of Inspector General.