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22 October 2013
Tobyhanna Man Pleads Guilty to Preparing and Filing False Tax ReturnsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that on October 17, Brandon Hill, age 32, pleaded guilty before U.S. District Court Senior Judge Edwin M. Kosik to preparing and filing false tax returns.
According to United States Attorney Peter J. Smith, Hill was responsible for the preparation of approximately 60 false returns in the years 2009, 2010 and 2011. Hill prepared false returns for himself as well as others. The total amount of refunds which Hill was responsible for falsely claiming was $291,103.
Hill was charged in September 2013.
The case was investigated by the Criminal Investigation Division of the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorney Lorna N. Graham.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is -five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Ten Charged After Investigation into Danbury-area Home Invasion Drug RobberiesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration in New England, and Danbury Police Chief Alan D. Baker today announced that a federal grand jury sitting in Bridgeport has returned a superseding indictment charging 10 individuals with various conspiracy, robbery, firearms and drug offenses stemming from an investigation into a series of Danbury-area violent home invasion robberies of illegal drugs and drug trafficking proceeds. The indictment was returned on October 9.
Charged in the 13-count superseding indictment are:
MARLON PATTERSON, a.k.a. “Head,” 20, of Danbury
MICHAEL SPEARS, 23, of Danbury
ANTONIO PARKER, a.k.a. “Little Buddha,” 18, of Danbury
SCOTT MYRIE, a.k.a. “Venom,” 26, of Bedford Hills, N.Y.
CASEY KERSHAW, 25, of Danbury
ROBERT CHERRY, a.k.a. “Rob Base,” 43, of Danbury
PAUL WHITEHURST, a.k.a. “Juice,” 23, of Bridgeport
KEVIN LEMON, a.k.a. “Cheese,” 20, of Bridgeport
LAQUANNA BRIGGS, 21, of DanburyNine of the 10 defendants charged in the indictment have been arrested and one defendant is currently being sought by law enforcement.
The indictment alleges that PATTERSON, SPEARS, MYRIE, KERSHAW and another defendant committed the armed robbery of narcotics and narcotics trafficking proceeds from a victim on January 30, 2013, and subsequently possessed with intent to distribute a quantity of marijuana. The indictment further alleges that PATTERSON, SPEARS and another defendant committed the armed robbery of narcotics and narcotics trafficking proceeds from a victim on February 14, 2013, and that PATTERSON, SPEARS, PARKER, MYRIE and CHERRY committed the armed robbery of narcotics and narcotics trafficking proceeds from a victim on February 18, 2013.
PATTERSON, SPEARS, PARKER, MYRIE, KERSHAW and CHERRY are each charged with one or more counts of conspiracy to interfere with commerce by robbery, interference with commerce by robbery, and use of firearm during and in relation to crimes of violence. The robbery charges carry a maximum term of imprisonment of 20 years, and the firearm charge carries a mandatory seven-year sentence consecutive to any other term of imprisonment imposed. The marijuana distribution charge against PATTERSON, SPEARS, MYRIE and KERSHAW carries a maximum term of imprisonment of five years.
In addition, the indictment alleges that PATERSON, SPEARS, WHITEHURST, LEMON and BRIGGS conspired to distribute 280 grams or more of cocaine base (“crack”), a charge that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Finally, the indictment alleges that WHITEHURST and LEMON possessed with intent to distribute cocaine base, and that LEMON possessed with intent to distribute a quantity of heroin. Each of these charges carries a maximum term of imprisonment of 20 years.
Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force and the Danbury Police Department. The DEA Task Force includes personnel from the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The case is being prosecuted by Assistant U.S. Attorney Tracy Dayton.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Tampa Man Indicted on Gun, Drug and Tax Fraud Related ChargesRead the Press Release
Tampa, Florida – Acting United States Attorney A. Lee Bentley, III announces the return by a grand jury of a superseding indictment charging Edwaldo Louis Oliveiri (22, Tampa) with conspiracy to possess with the intent to distribute marijuana and cocaine, possession of a firearm by a user of a controlled substance, theft of government property, aggravated identity theft, and nine counts of wire fraud. If convicted, Oliveiri faces a maximum penalty of 20 years in federal prison for the drug charge, 10 years’ imprisonment for the firearm charge, 10 years’ imprisonment for the theft of government property charge, up to 20 years in prison for each wire fraud charge, and a consecutive two years’ imprisonment for the aggravated identity theft offense. The superseding indictment also notifies Oliveiri that the United States intends to forfeit any assets which are alleged to be traceable to proceeds of the offenses.
According to the superseding indictment, Oliveiri was involved in a conspiracy to possess with the intent to distribute marijuana and cocaine from 2012 through September 11, 2013. In addition, he is charged with possessing a firearm on September 4, 2012, while then being an unlawful user of a controlled substance. The indictment alleges that Oliveiri committed a theft of more than $1,000 from the United States Department of Treasury on or about May 29, 2013, by stealing a fraudulently issued federal income tax refund. While committing the federal income tax refund theft, Oliveiri unlawfully used the name and Social Security number of another person. He is also charged with wire fraud in connection with the filing of nine separate false tax returns in April 2013.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Internal Revenue Service – Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hillsborough County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Mark E. Bini.
Sunbury Woman Indicted for Theft of MailRead the Press Release
And Access Device Fraud
The United States Attorney’s Office for the Middle District of Pennsylvania announced the return of an eight-count indictment by a federal grand jury in Williamsport on October 10, charging Amy Jenkins, age 39, with theft of mail, possession of stolen mail, fraud in connection with access devices, and aggravated identity theft.
According to United States Attorney Peter J. Smith, the indictment alleges that from November 2012 through April 2013, Jenkins stole mail from mail boxes in the 178 zip code area. Jenkins removed and possessed credit cards and related correspondence and other account information from the stolen mail with the intent to defraud.
The case was investigated by the United States Postal Inspection Service and the Pennsylvania State Police. Prosecution of this matter has been assigned to Assistant United States Attorney George J. Rocktashel.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 47 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Stevie Marie Vigil Pleads Guilty to Purchasing Firearm for Evan EbelRead the Press Release
DENVER -- Stevie Marie Anne Vigil, age 22, of Commerce City, Colorado, pled guilty this afternoon before U.S. District Court Judge Christine M. Arguello to the one and only count of the indictment, knowingly transferring a firearm to a convicted felon, United States Attorney John Walsh, 18th Judicial District Attorney George Brauchler and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Denver Acting Special Agent in Charge Luke Franey announced. Vigil was indicted on August 8, 2013. Today’s guilty plea did not involve a plea agreement. The defendant pled guilty to the indictment as charged. Vigil is scheduled to be sentenced by Judge Arguello on January 16, 2014 at 1:30 p.m.
According to the indictment, on March 8, 2013, Vigil knowingly disposed of and transferred a firearm to Evan Ebel, knowing and having reasonable cause to believe that Evan Ebel had been convicted of a crime punishable by imprisonment for a term exceeding one year.
“As this horrifying case starkly highlights, purchasing a firearm for a felon can and likely will result in tragedy,” said U.S. Attorney John Walsh. “For that reason, acting as a ‘straw purchaser’ of guns is also a grave federal felony, one that this office will prosecute to the full extent of the law. The defendant here has admitted her guilt to committing this crime, a crime that led directly to the murder of an innocent pizza delivery driver, Nate Leon, and the Colorado Department of Corrections Executive Director Tom Clements.”
“Stevie Vigil gave a known and dangerous felon a firearm that he later used to murder Mr. Leon and Mr. Clements,” said George H. Brauchler, District Attorney for the 18th Judicial District. “Today, she is being held accountable for her role in helping to murder two good men. Mr. Leon was a dedicated family man who had the bad luck to be working hard one night. Mr. Clements tirelessly devoted his career to improving the lives of prisoners. Providing a firearm to a felon like Evan Ebel is a deplorable and dangerous act which can be a death sentence for a complete stranger.”
“We know through our investigation that straw purchasing is a major source of crime guns,” said Denver Acting Special Agent in Charge Luke Franey. “ATF will continue to work with our law enforcement partners to stop the illegal purchase and transfer to violent criminals.”
Vigil faces not more than 10 years in federal prison, and a fine of up to $250,000.
The indictment is a result of a joint federal and state investigation involving multiple agencies, including: Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Colorado Bureau of Investigation (CBI), El Paso County Sheriff?s Office, the Denver Police Department, the Federal Bureau of Investigation (FBI), the Texas Rangers, the Wise County, Texas Sheriff’s Department, the Texas Department of Public Safety, and the Colorado Department of Corrections.
Vigil is being prosecuted by Assistant U.S. Attorney Richard Hosley, Chief of the U.S. Attorney’s Major Crimes Section, and Special Assistant U.S. Attorney Mark Hurlbert, Assistant District Attorney for the 18th Judicial District.
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Statement of the United States AttorneyRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, released the following statement this afternoon:
For some time now, Carl Brizzi has been the target of a federal investigation into actions taken and decisions made while he was the elected Prosecutor of Marion County. The inquiry has centered on two cases: State of Indiana vs. Paula Willoughby and State of Indiana vs. Joseph Mobareki. This investigation of possible violations of federal criminal law involved, but was not limited to, allegations of bribery.
While it may be unacceptable for a prosecutor to receive a $29,000 campaign contribution from the father of a woman who has requested her prison sentence for murder be modified (Willoughby), or for a prosecutor to have a financial relationship with a criminal defense lawyer while determining what plea bargain should be extended to a client of that same defense lawyer (Mobareki), the criminal law requires more to support a conviction.
As the United States Attorney, I must determine that there is sufficient admissible evidence to prove a federal crime beyond a reasonable doubt prior to authorizing criminal charges.
The federal criminal investigation and prosecution of David Wyser for bribery produced no direct evidence from any witness – including David Wyser – that any individual other than Wyser was responsible for a sentence modification for Paula Willoughby.
Likewise, the federal criminal investigation and prosecution of Paul Page for bank fraud in relation to the Elkhart property produced no direct evidence from any witness – including Paul Page – that the proceeds Mr. Brizzi received from the Elkhart transaction influenced the decision to give Paul Page’s client Joseph Mobareki an unusual plea bargain.
Because neither Paul Page, nor David Wyser, nor any other witness has provided direct evidence that Mr. Brizzi received a bribe in connection with the Willoughby matter or the Mobareki plea bargain, I have determined that there is not sufficient evidence to prove beyond a reasonable doubt that Mr. Brizzi committed the crime of bribery and sustain a conviction.
However, under the Indiana Rules of Professional Conduct, the U.S. Attorney’s Office is obligated to report Mr. Brizzi’s alleged misconduct in the Willoughby and Mobareki matters. I have instructed that this office provide the evidence gleaned from this investigation to the Department of Justice’s Office of Professional Responsibility for their determination on whether the alleged misconduct should be referred to the Indiana Supreme Court Disciplinary Commission.
Spokane Man Sentenced to 20 Years in Federal Prison for Trafficking Meth in IdahoRead the Press Release
COEUR D’ALENE – Charles Edward Gibson, 43, of Spokane, Washington, was sentenced today in United States District Court in Coeur d’Alene to 240 months in prison followed by 10 years of supervised release for conspiracy to distribute 50 grams or more of methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Rosanna Malouf Petersen of the Eastern District of Washington also ordered Gibson to forfeit $35,000. He pleaded guilty to the charge on June 25, 2013.
According to the plea agreement, Gibson admitted that between December 4, 2012, and January 8, 2013, he distributed to an undercover officer and received payment for at least 50 grams or more of actual methamphetamine. It was later determined the street value of the methamphetamine was at least $35,000. Gibson admitted that he knew the substance was methamphetamine and he knowingly distributed it.
Gibson’s co-defendant, Vanessa Louise Wagner, 30, of Plummer, Idaho, pleaded guilty on July 22, 2013, to conspiracy to distribute 50 grams or more of methamphetamine. Sentencing is set for December 9, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
“This prosecution underscores our commitment to work with our federal, state, and local partners to aggressively prosecute drug traffickers,” said Olson. “Methamphetamine is highly addictive. Distributors benefit from the undeniable damage they cause to individuals, families, and our communities. Those who bring methamphetamine into this state will be prosecuted and serve a lengthy prison sentence.”
The case was jointly investigated by the Bureau of Indian Affairs (BIA), Drug Enforcement Administration (DEA), Idaho State Police, Coeur d’Alene Tribal Police and Plummer Police Department.
Spa Owner Guilty of Laundering MoneyRead the Press Release
JOHNSTOWN, Pa. - A resident of Suwanee, Ga., pleaded guilty in federal court to a charge of laundering of monetary instruments, United States Attorney David J. Hickton announced today.
Steve Park, 56, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that between Jan. 1, 2010, and Dec. 10, 2010, Park, while the owner of The SunSet Health Spa, located on Pleasant Valley Boulevard, Altoona, Pa., conducted financial transactions which involved proceeds derived from the unlawful interstate transportation of individuals for illegal sexual activity. By conducting these financial transactions with the illicit proceeds, he intended to engage in conduct constituting a violation of Sections 7201 or 7206 of the Internal Revenue Code.
Judge Gibson scheduled sentencing for Feb. 24, 2014, at 11:00 a.m. The law provides for a total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Internal Revenue Service - Criminal Investigation, and the Pennsylvania State Police conducted the investigation that led to the prosecution of Park.
Sneedville Resident Johnny Wayne Neeley Convicted for Oxycodone Trafficking OffensesRead the Press Release
Neeley Organized Trips to Tennessee and Florida “Pill Mills”
GREENEVILLE, Tenn. – On Sept. 30, 2013, Johnny Wayne Neeley, 39, of Sneedeville, was convicted of conspiring to distribute oxycodone and possession with intent to distribute oxycodone, following a three-day jury trial in U.S. District Court in Greeneville. Sentencing is set for 1:30 p.m., Feb. 10, 2014, in U.S. District Court in Greeneville. He faces a possible sentence of up to 40 years in federal prison and up to $2,000,000 in fines.
Neeley and 11 others were indicted on drug trafficking charges in October 2012 by a federal grand jury. According to evidence presented at trial, Neeley paid for, or “sponsored” others indicted in this conspiracy to travel on commercial airlines to pill mills in Tampa, Fla., to obtain oxycodone to distribute in the Eastern District of Tennessee. He also paid for, or “sponsored”, these individuals to travel to pill mills in the Eastern District of Tennessee to obtain oxycodone for distribution. Evidence showed that Neeley distributed controlled substances in the Eastern District of Tennessee on numerous occasions, including oxycodone, Xanax, and Suboxone.
In October 2012, Neeley and Greg Rhea, were arrested at Rhea’s residence in Morristown, where the two were barricaded inside the house in a room found to contain controlled substances, including oxycodone and oxymorphone, and three firearms.
Others charged in this indictment, who have already been convicted and are awaiting sentencing, include: Gregory Allen Rhea, 37, of Morristown; Gerald Glenn Horner, 35, of Mooresburg; Ryan Michael Guesford, of Morristown; Joey Wayne Vanover, 35, of Tazewell; Kera Leann Green, 23, of Whitesburg; Kerry Glenn Nelson, 42, of Morristown; Kimberly Ann Vanover, 37, of Tazewell; Ricky Allen “Rooster” Seal, 46, of Morristown; Tamara Michelle Moles, 44, of Mooresburg; and Ricky Tim Collins, 47, of Bean Station.
This investigation was a joint effort of the Tennessee Bureau of Investigation and Morristown Police Department. In addition, the U.S. Marshals Service, Drug Enforcement Administration Task Force officers, Third Judicial District Drug Task Force, and the Sheriff’s Offices of Claiborne, Grainger, Hancock, Hamblen, and Hawkins counties assisted with the October 2012 arrests. Assistant U.S. Attorney Suzanne Kerney-Quillen represented the United States.
Seven Individuals Sentenced and Eleven Individuals Convicted in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
CLARKSBURG, WEST VIRGINIA – Seven individuals were sentenced and eleven individuals entered guilty pleas, according to United States Attorney William J. Ihlenfeld, II.
Judge Keeley sentenced the following:
ERIC SCOTT BARKER, age 33, of Mt. Clare, West Virginia, to 169 months imprisonment to be followed by three years of supervised release; ROBERT ALLEN HILL, age 24, of Lost Creek, West Virginia, to 45 months imprisonment to be followed by three years of supervised release; and, MEGAN DUNIGAN, age 25, of Fairmont, West Virginia, to 30 months imprisonment to be followed by three years of supervised release, for “Possession with Intent to Distribute Heroin” and violations of their supervised release. The Court also ordered the forfeiture of $1,506 which was seized. BARKER, HILL and DUNIGAN were remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Criminal Chief Shawn A. Morgan and investigated by the Greater Harrison County Drug and Violent Crime Task Force, consisting of officers from the Bridgeport Police Department; Clarksburg Police Department; Drug Enforcement Administration; West Virginia State Police-Bureau of Criminal Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service; and, the United States Marshals Service.
FRANKLIN MCVAY, age 27, of Morgantown, West Virginia, to 37 months imprisonment to be followed by three years of supervised release for a charge of “Felon in Possession of a Firearm.” MCVAY was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Assistant U.S. Attorney Zelda E. Wesley and investigated by the Bureau of Alcohol, Tobacco and Firearms; the West Virginia State Police; and, the Monongalia County Sheriff’s Department.BRIAN FARLEY, age 31, of Clarksburg, was sentenced to 21 months imprisonment to be followed by three years of supervised release for a charge of “Obtaining Drugs by Fraud,” and one charge of “Making a Material False Statement.” FARLEY was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Assistant U.S. Attorney Robert H. McWilliams, Jr. and investigated by the Veterans Administration Office of Inspector General.
LEONARD ROUNDS, age 36, an inmate at FCI Gilmer entered a plea of guilty to “Attempted Possession of a Prohibited Object” when staff members discovered suboxone strips hidden inside a card mailed to inmate ROUNDS, and was sentenced to 12 months imprisonment to run concurrently with his current 130-month sentence. This case was prosecuted by Assistant U.S. Attorney Brandon S. Flower and investigated by the Special Investigative Services Staff at FCI Gilmer.
ERIC SMITH, age 30, of Fairmont, West Virginia, was sentenced to three years probation, with the first six months to be served under home detention, for the “Distribution of Marijuana within 1,000 Feet of a Protected Location.” This case was investigated by the Bureau of Alcohol, Tobacco and Firearms and the Fairmont Police Department.
SEAN MILLER PHILLIPS, JR., age 31, of Eastpoint, Michigan, and JAMILA MCLAUGHRY, age 25, of Morgantown, entered pleas of guilty before Judge Keeley to “Distribution of Heroin within 1,000 Feet of the North Elementary School” in Monongalia County. PHILLIPS, who is in custody, and MCLAUGHRY, who is free on bond, pending sentencing, face up to forty years in prison. In the same case, WILLIAM ANDERSON, age 20 and EDDIE PICKETT, age 20, of Detroit, Michigan, entered pleas of guilty to “Possession with Intent to Distribute Heroin.” ANDERSON and PICKETT, who are free on bond pending sentencing, face up to twenty years in prison. This case was investigated by the Mon Valley Drug & Violent Crime Task Force, consisting of officers from the Morgantown Police Department, the Monongalia County Sheriff’s Department, and the Drug Enforcement Administration.JOHN CHAMBERS, of Clarksburg, entered a plea of guilty before Magistrate Judge John S. Kaull to “Possession of Child Pornography.” CHAMBERS, who is free on bond pending sentencing, faces up to ten years in prison. This case was investigated by the Federal Bureau of Investigation and prosecuted 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, 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.
RONALD STARKEY, age 28, of Morgantown, entered a plea of guilty before Judge Kaull to “Felon in Possession of a Firearm.” STARKEY, who is free on bond pending sentencing, faces up to ten years in prison. This case was investigated by the Bureau of Alcohol, Tobacco and Firearms.
The PHILLIPS, CHAMBERS and STARKEY cases were prosecuted by Assistant U.S. Attorney Zelda E. Wesley.
SPAYNE SWINDLE, age 19, of Pittsburgh, Pennsylvania, entered a plea of guilty before Judge Kaull to “Distribution of Cocaine within 1,000 Feet of the Pierpont Community and Technical College.” SWINDLE, who is in custody pending sentencing, faces up to forty years in prison.
LYNN SPAW, age 44, of Clarksburg, entered a plea of guilty before Judge Keeley to “Distribution of Cocaine within 1,000 Feet of the Pierpont Community and Technical College.” SPAW, who is free on bond pending sentencing, faces up to forty years in prison.
JOSEPH GRANT, age 68, of Bridgeport, West Virginia, entered a plea of guilty before Judge Keeley to “Maintaining a Drug-Involved Premise.” GRANT, who is free on bond pending sentencing, faces up to twenty years in prison.
The SWINDLE, SPAW and GRANT cases were prosecuted by Criminal Chief Shawn A. Morgan and investigated by the Greater Harrison County Drug and Violent Crime Task Force.
SASHA PEGGUES, age 28, of Morgantown, entered a plea of guilty before Judge Keeley to “Aggravated Identity Theft” by forging checks belonging to an elderly man for whom she was providing care-giving services for her personal use. PEGGUES, who is in custody pending sentencing, faces up to thirty years in prison. This case was prosecuted by Assistant U.S. Attorney Andrew R. Cogar and investigated by the United States Postal Inspection Service and the Morgantown Police Department.
AARON SEIDEL, age 29, of Warren, Illinois, entered a plea of guilty before Judge Keeley to “Traveling in Interstate commerce for the Purpose of Engaging in Illicit Sexual Conduct.” SEIDEL, who is in custody pending sentencing, faces up to thirty years in prison. This case was prosecuted by Assistant United States Attorney Robert H. McWilliams, Jr. and investigated by the West Virginia State Police.
Scranton Man Pleads Guilty to Receiving, Distributing, and Possessing Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Scranton man pleaded guilty on October 3, in federal court, admitting to the receipt, distribution, and possession of thousands of images and videos of child pornography.
According to United States Attorney Peter J. Smith, Daniel Albert Mall, age 34, entered his guilty plea before Senior United States District Court Judge Edwin M. Kosik.
The case against Mall stems from an investigation by the Federal Bureau of Investigation and the Lackawanna County District Attorney’s Office-Internet Crimes Against Children Task Force.
Mall was indicted in July 2012 and charged with committing the offenses between 2001 and 2012. He was arrested on May 30, 2012.
Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
This case was brought as part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat child sexual exploitation and abuse. 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.
Prescription Drug Take-Back to Be Held Saturday, October 26, 2013Read the Press Release
Montgomery, Alabama - Prescription Take-Back Day will be held this Saturday, October 26, at locations throughout the State, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama, and Clay Morris, Drug Enforcement Administration Special Agent in Charge for Alabama.
Alabamians will have the opportunity to turn in their old prescription drugs at drop-off points throughout the state on Saturday, October 26 from 10am until 2pm. A list of collection sites is available online at the DEA website, deadiversion.usdoj.gov, or citizens may inquire with their local police departments and sheriff’s offices. The DEA also may be contacted toll-free by calling 1-800-882-9539.
Prescription drugs that languish in medicine cabinets create a public health and safety concern because they are highly susceptible to misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high; almost twice as many Americans (6.8 million) currently abuse prescription drugs than the number of those abusing cocaine, hallucinogens, heroin, and inhalants combined, according to the 2012 National Survey on Drug Use and Health. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. Further, studies show that more Americans die from drug overdoses than in car crashes and that opioid pain relievers are responsible for more overdose deaths than cocaine and heroin combined.
Clearly, this is an enormous problem for our youth as well our adult citizens. Keeping prescription drugs after they are no longer needed may entice a teen to try the drug. However, if you safely dispose of your medicine, you will keep it away from teens or others that may abuse the drugs. The Alabama Department of Public Health has cited prescription drug abuse as an emerging public health issue and the nation’s fastest-growing drug problem.
In addition to concerns of potential abuse or overdose, it also is important environmentally that medicines be disposed in a proper manner rather than simply being thrown into garbage, flushed away, or poured down drains, as they could contaminate water supplies and cause an environmental hazard. Also, expired drugs may have lost their effectiveness and therefore no longer be a safe and adequate treatment for the conditions for which they were prescribed.
“This drug Take-Back day allows us to rid our medicine cabinets of these potentially lethal drugs,” stated U.S. Attorney Beck. “We ask all of our citizens to use this day to help make their homes a safer place for their family and friends.”
“Take-Back is an important step in ridding our country of lethal, illegal drugs,” stated DEA Assistant Special Agent in Charge Clay Morris. “When the results of the six prior Take-Back Days were combined, the DEA, and its state, local, and tribal law-enforcement and community partners have removed over 1.5 million pounds (774 tons) of medication from circulation. This speaks volumes about the need to develop a convenient way to rid homes of unwanted or expired prescription drugs. Until such laws are passed, Law Enforcement is the only entity citizens can legally and safely dispose of these drugs.”
Each collection site will be supervised by a law enforcement officer due to the involvement of controlled substances.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Pittsburgh Man Sentenced to Prison for Stealing Microsoft Co-founder’s IdentityRead the Press Release
PITTSBURGH - United States Attorney David J. Hickton announced today that Brandon Lee Price, 28, of East Liberty, was sentenced before United States District Court Judge Terrence F. McVerry to eight months in prison to be followed by two years supervised release. Price was also ordered to pay $658 in restitution.
In sentencing Price on his plea to four counts of bank fraud Judge McVerry found that Price had attempted to cause a financial loss of greater than $15,000 to Citibank, N.A., by convincing Citibank N.A. to send account information of a Citibank customer, Paul Allen, the cofounder of Microsoft, to Price at his mother’s residence in East Liberty. Mr. Price then used the account information to pay off an outstanding loan and he attempted to access Mr. Allen’s accounts and funds through the use of a debit card that Price convinced the bank to send to him.
The Federal Bureau of Investigation conducted the investigation which led to the indictment and guilty plea in this case.
Pittsburgh Man Facing Charges Related to the Sexual Exploitation of MinorsRead the Press Release
PITTSBURGH – An Allegheny County man has been indicted by a federal grand jury in Pittsburgh on charges of receipt, distribution, and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The three-count indictment named James Stover, 26, as the sole defendant.
According to the indictment, on or about March 19, 2013, Stover received images containing material depicting the sexual exploitation of minors. The indictment further alleges that on or about May 29, 2013, Stover distributed images containing material depicting the sexual exploitation of minors. The indictment further alleges that on or about Aug. 15, 2013, Stover knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a maximum total sentence of 50 years in prison, a fine of $750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Philadelphia Man Charged with Robbing Three BanksRead the Press Release
Curtis Richardson, 48, of Philadelphia, was charged today in a three-count Indictment1 with committing a robbery of Conestoga Bank, 1032 Arch Street in Philadelphia on August 31, 2013, a robbery of Citizens Bank, 2001 Market Street in Philadelphia on September 1, 2013, and a robbery of Conestoga Bank, 1835 Market Street in Philadelphia on September 4, 2013, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 60 years in prison, a $750,000 fine, and $300 in special assessments.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Marianne Cox.
Click here to view the indictment
1An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Man Charged with Robbing A WawaRead the Press Release
Dean Ceraolo, 51, of Philadelphia, PA, was charged today by Superseding Indictment with robbing the Wawa store, at 10901 Bustleton Avenue, Philadelphia, on August 24, 2013, and attempting to rob Citizens Bank, at 1970 Red Lion Road, Philadelphia, on September 3, 2013, announced United States Attorney Zane Davd Memeger.
If convicted the defendant faces a maximum possible sentence of 40 years in prison, three years supervised release, a $500,000 fine, and $200 in special assessments.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Arlene Fisk.
Click here to view the indictment
1An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pennsylvania Man Sentenced to 57 Months Imprisonment in Drug Conspiracy CaseRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Kevin Morris, age 24 of Franklin Township, Pennsylvania (Chester County), was sentenced to 57 months imprisonment for his role in a drug conspiracy centered in Wilmington that involved the importation of cocaine and heroin from Panama and Afghanistan. United States District Judge Richard G. Andrews further imposed a three year term of supervised release and ordered Morris to forfeit the sum of $22,172.00 in drug proceeds.
Morris pleaded guilty on July 25, 2012, to conspiracy to smuggle five kilograms of cocaine and one kilogram of heroin from the Republic of Panama into the United States, in violation of Title 21, United States Code, Sections 841 and 846; and money laundering, in violation of Title 18, United States Code, Section 1957. According to facts introduced during the plea hearing, Morris admitted that he acted as a recruiter, facilitator, and financier for the organization, and that he was involved on multiple occasions in which couriers smuggled or attempted to smuggle heroin and cocaine from Panama to Delaware. He acknowledged making cocaine and heroin sales to customers based primarily in Pennsylvania, including to confidential informants under the control of the Pennsylvania State Police. Morris further admitted his involvement in purchasing approximately one-half kilogram of cocaine in Washington, D.C., which had been smuggled into the United States through a military contractor based in Afghanistan.
In connection with his plea agreement Morris accepted responsibility for at least five (5) kilograms of cocaine and five (5) kilograms of heroin. He also admitted that he laundered his drug proceeds in part by purchasing two vehicles.
To date, the government has charged twenty-three individuals in the United States with drug trafficking offenses as a result of the investigation. All but four of those defendants – each of whom remain abroad in Panama – have pleaded guilty, or have agreed to plead guilty, to drug-related offenses. A listing of the charged defendants and their current status is set forth in Attachment A.
United States Attorney Charles M. Oberly, III, stated, “The Court’s sentence appropriately punishes the defendant for his important role in an international drug conspiracy that had a negative impact on Wilmington and its surrounding communities. I applaud the exceptional efforts of our law enforcement partners in dismantling the organization of which Mr. Morris played a significant role.”
The investigation was led by the Drug Enforcement Administration, the Department of Homeland Security – Homeland Security Investigations, the Internal Revenue Service – Criminal Investigation Division, and the Wilmington Police Department.
Investigators also received invaluable assistance from the Panamanian National Police; the United States Attorney’s Office for the Southern District of Texas; the United States Marshals Service for the District of Delaware; the Newark (Delaware) Police Department; the Delaware State Police; the New Castle County Police Department; the Delaware Department of Corrections, Probation and Parole; the Cecil County (Maryland) Drug Task Force; the Pennsylvania State Police; the Maryland State Police; and the Elkton (Maryland) Police Department.
This case is being prosecuted by Assistant United States Attorney Robert F. Kravetz. For further information, contact Press Information Officer Kimberlynn Reeves at (302) 573-6277, ext. 16287.
ATTACHMENT A
Status of Defendants Charged in Panama/Afghanistan Drug Investigation
Defendant District Case No. StatusRonaldo Edmund
Delaware
11-63-RGA
Sentenced on September 9, 2013, to 180 months imprisonment
Tissany Buckham
Delaware
11-63-RGA
Sentenced on April 10, 2013, to 22 months imprisonment
Kimberly Fowler
Delaware
11-63-RGA
Completed pretrial diversion on November 6, 2012
Kelvin Cook
Delaware
11-63-RGA
Sentenced on June 20, 2013, to 180 months imprisonment
Julio Archer
Delaware
11-63-RGA
Sentenced on June 11, 2013, to 60 months imprisonment
Roumik Banerjee
Delaware
11-63-RGA
Sentenced on April 3, 2013, to 57 months imprisonment
Mia Poteat
Delaware
11-63-RGA
Sentenced on April 3, 2013, to 37 months imprisonment
Tina Simmons
Delaware
11-63-RGA
Sentenced on May 7, 2013, to three years’ probation and six months home detention
Tessa Snyder
Delaware
11-63-RGA
Pleaded guilty on May 18, 2012; pending sentencing
Dynisha Revel
Delaware
11-63-RGA
Charged defendant, currently incarcerated in Panama
Raabia Munir
Delaware
11-63-RGA
Pleaded guilty on October 16, 2013, pending sentencing
Sharon Butera
Delaware
11-63-RGA
Charged defendant, currently incarcerated in Panama
Efrain Dixon
Delaware
11-63-RGA
Charged defendant, Panamanian national
Benjamin Carpenter
Delaware
11-63-RGA
Charged defendant, Panamanian national
Tara Resto
Delaware
09-102-GMS
Pleaded guilty on April 13, 2010; sentencing hearing to be determined
Kevin Morris
Delaware
12-41-RGA
Sentenced on October 22, 2013 to 57 months imprisonment
Saleem A. Sharif
Delaware
12-53-RGA
Sentenced on September 4, 2013, to 120 months imprisonment
Charles Richardson
Delaware
12-44-RGA
Sentenced on January 29, 2013, to 60 months imprisonment
Darrold Thomas
Delaware
12-65-RGA
Sentenced on August 27, 2013, to 54 months imprisonment
Sayeed A. Behrooz
Delaware
13-93-RGA
Pleaded guilty on October 15, 2013; pending sentencing on February 26, 2014
Neisha Miller
Southern Dist. of TX
5: 11-43-01
Sentenced on September 20, 2011 to 36 months imprisonment
Gloria Miller
Southern Dist. of TX
5: 11-43-02
Sentenced on September 20, 2011 to 36 months imprisonment
Christine A. Blevins
Southern Dist. of TX
5: 09-388-01
Sentenced on March 4, 2010, to 60 months imprisonment
Bridgette Davidson
Southern Dist. of TX
5: 09-388-02
Sentenced on March 12, 2010, to 60 months imprisonment
Passaic County Man Sentenced to Prison for Role in Long-running, International Counterfeit Goods Trafficking SchemeRead the Press Release
NEWARK, N.J. – A Passaic County, N.J., man was sentenced today to a year and a day in prison for participating for several years in an international conspiracy to sell counterfeit sneakers and bedding smuggled from the People’s Republic of China (PRC) into the United States, U.S. Attorney Paul J. Fishman announced.
Aref Abuhadba, 50, of Totowa, N.J., previously pleaded guilty before U.S. District Judge Dennis M. Cavanaugh to an information charging him with one count of conspiring to traffic in counterfeit goods. Judge Cavanaugh imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:From 2003 through 2010, Abuhadba and others conspired to import counterfeit Nike sneakers and counterfeit Walt Disney-brand comforters and blankets from the PRC for resale in the United States. Abuhadba worked in concert with a conspirator in the PRC, who acted as a middleman between the manufacturers of counterfeit goods in the PRC and Abuhadba in the United States, purchasing the goods and arranging for them to be shipped to various ports of entry within the United States. Once the containers arrived, other conspirators arranged for them to be delivered to warehouses and other locations controlled by Abuhadba, who would then distribute the counterfeit goods to customers.
Abuhadba was also responsible for collecting money from customers and wiring the proceeds of the scheme to the conspirators. For his participation, Abuhadba received a fee of up to $42,000 for each container that was successfully imported into the United States. If a container was seized by law enforcement, Abuhadba was sometimes responsible for a portion of the costs of the goods in the seized container.
According to emails reviewed by law enforcement during the investigation, in late 2008, a number of containers with contents valued at millions of dollars were seized by U.S. Customs and Border Protection (CBP). On Sept. 17, 2008, CBP agents inspected a container at Los Angeles/Long Beach Seaport in Long Beach, Calif., destined for Abuhadba in New Jersey. There were more than 10,000 pairs of counterfeit Nike Air Force One sneakers – bearing various Nike trademarks – in the container. The cost of the goods seized was approximately $200,000, with an approximate retail value of $1.5 million. Following the 2008 seizures, Abuhadba exchanged numerous e-mails with the PRC conspirator discussing the seizures and encouraged the PRC conspirator to send false letters to CBP stating that the seized containers were delivered by mistake and were not intended for Abuhadba.
In addition to the prison term, Judge Cavanaugh sentenced Abuhadba to serve two years of supervised release. During his guilty plea proceeding, Abuhadba presented the government with a check for $200,000, representing his ill-gotten gains from his involvement in the conspiracy. He was also ordered to pay an additional $25,000 fine.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s sentence.
The government is represented by Deputy Chief Gurbir S. Grewal of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
13-406Defense counsel: Edward Bilinkas Esq., Randolph, N.J., and Peter V. Ryan Esq., Newark
Owners and Operators of Crime Riddled Motels Plead Guilty; Forfeit Properties, Car and more than $265,000Read the Press Release
The final two owners and managers of crime infested motels in Tukwila, Washington pleaded guilty today to conspiracy to maintain drug involved premises, announced U.S. Attorney Jenny A. Durkan. In their plea agreements, JASPAL SINGH, 37, and KULWINDER SAROYA, 42, both of SeaTac, Washington, admit they knowingly operated drug involved premises at the Travelers Choice Motel and Great Bear Motor Inn and profited from the drug activity there. The men agree to forfeit the two motels, their home in SeaTac, more than $265,000 seized from their home and bank accounts and a 2007 Mercedes Benz. Today’s pleas mean that all three motels shuttered and seized by federal agents in August 2013 will be sold by the U.S. Marshals Service.
“We will use all of our tools to seize criminal proceeds, protect the public and hold people accountable. Since we shut these motels, the number of police calls to the immediate area has dropped by one-third,” said U.S. Attorney Jenny A. Durkan. “These defendants profited by knowingly operating motels that were a blight on the community, creating an unsafe environment and soaking up police resources to the detriment of the community. It is fully appropriate that this prosecution take the profit out of these criminal activities.”
Last week, a third defendant, LAKHVIR PAWAR, 41, the manager of the Boulevard Motel on Tukwila International Boulevard pleaded guilty and agreed to forfeit any interest in that motel as well as more than $90,000 he accumulated from the criminal activity. All three men will be sentenced by U.S. District Judge John C. Coughenour on February 28, 2014. The government has agreed to recommend no more than a year in prison for each defendant, but the judge is free to impose any sentence up to the maximum 20 years allowed by law.
According to records filed to seize the motels, the Tukwila Police Department and Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) jointly-led investigation used undercover officers and people working with law enforcement to document criminal activity at the motels and the role the owners and managers played in that activity. SAROYA and SINGH admitted they would collect or would direct their staff to collect a $10 entry fee for those coming on the property seeking drugs or sexual services. The owners and/or managers would take the money and direct the customer to rooms to purchase drugs or sex. In some instances the person taking the “fee” would call the motel room to inform the dealer or sex worker that a customer was on the way. SAROYA and SINGH admitted today that they collected additional rental fees from the dealer or sex worker based on how many customers were sent to the room over the course of the day.
The investigation, search and seizure operation was led by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Tukwila Police Department. Many additional agencies assisted the investigation including the U.S. Marshals Service; Department of Homeland Security; Drug Enforcement Administration; Federal Bureau of Investigation; Internal Revenue Service Criminal Investigation; U.S. Department of Agriculture Office of Inspector General; Washington State Patrol; Seattle, Auburn, Kent, Renton, Federal Way, and Port of Seattle Police Departments; Valley SWAT Team; King County Sheriff’s Office; Washington State Department of Corrections; and Washington State Department of Social and Health Services (DSHS).
The case is being handled by Assistant United States Attorneys Justin Arnold, Jill Otake and Richard Cohen.
Operator of Human Stash House Sentenced to 97 MonthsRead the Press Release
PHOENIX – On Oct. 21, 2013, Diego DeLeon Chavez, 26, of Mexico, was sentenced by U.S. District Judge G. Murray Snow to 97 months of incarceration and five years of supervised release. Chavez pleaded guilty on July 25, 2013, to conspiracy to harbor and transport illegal aliens, resulting in death, after two Guatemalan nationals whom Chavez’s operation was transporting were killed in a rollover crash.
During the month of July 2012, Chavez operated a human stash house in Phoenix where he harbored illegal aliens. Chavez coordinated the receipt of smuggling fees and the transportation of illegal aliens to other parts of the United States. The two victims died at the scene of the rollover crash from injuries they sustained when they were ejected from the vehicle. Thirteen illegal aliens inside the vehicle survived the crash, including the driver, Israel Velasquez, and his co-driver, who has not been identified. Velasquez, fled from the scene of the crash, but was apprehended by law enforcement four days later outside another human stash house in Phoenix. On July 25, 2013, Velasquez also pleaded guilty to conspiracy to harbor and transport illegal aliens, resulting in death, and is pending sentencing.
The investigation in this case was conducted by U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations and the Arizona Department of Public Safety’s Illegal Immigration Prevention Apprehension Co-op Team and Highway Patrol. The prosecution was handled by Kristen Brook and Lisa E. Jennis, Assistant U.S. Attorneys, District of Arizona, Phoenix.CASE NUMBER: CR-12-1503-GMS
RELEASE NUMBER: 2013-080_ChavezFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Newport News Man Sentenced for Participating in Drug ConspiracyRead the Press Release
NEWPORT NEWS, Va. – Kenneth Matthews, 36, of Newport News was sentenced today to 264 months in prison for his participation in a drug conspiracy and for being an accessory after the fact to murder.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office, and Joseph A. Moore, Interim Chief of Police, Newport News Police Department made the announcement after sentencing by United States District Judge Rebecca Beach Smith.
Matthews pled guilty on July 15, 2013 to a conspiracy to distribute more than 5 kilograms of cocaine and accessory after the fact to murder in reference to his disposal of a firearm used in the murder of Christian Hatch.
According to court documents, Matthews associated with members of a criminal organization known as “Thug Relations,” operating in the Aqueduct Apartments, St. Michael’s Apartments, Warwick Lawns, Warwick Town Homes, Heritage Trace Apartments, Mariner’s Landing Apartments, Sharon Drive and the Savage Drive areas of Newport News. The defendant and others conspired to distribute cocaine and cocaine base in order to make money from their narcotics distribution. Matthews was the secondary source of supply for many of the Thug Relations gang members. On November 4, 2009, the defendant provided a firearm to a known associate of Thug Relations who was involved in a gang related feud with several other individuals associated with a rival gang known as the "Black P-Stones", which dispute included the location of drug trafficking activities. The associate took the firearm and shot into an occupied dwelling resulting in the death of Christian Hatch and injuries to other rival gang members. Following the murder, the firearm was returned to Matthews who took the firearm out of the Commonwealth of Virginia in an effort to hinder the apprehension of the shooter. Matthews knew the firearm had been used in the murder.
This case was investigated by the Federal Bureau of Investigation, with the assistance of the Newport News Police Department and the Virginia State Police. Assistant United States Attorney Eric M. Hurt 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.Monroe County Man Sentenced to Prison ForRead the Press Release
Federal Cocaine Trafficking Charges
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Monroe County man was sentenced today by Senior United States District Judge Edwin M. Kosik to serve 24 months in prison on the charge of conspiracy to distribute cocaine.
According to United States Attorney Peter J. Smith, Lenix Gutierrez-Esquea, age 31, formerly of Stroudsburg, Monroe County, previously admitted to participating in a drug-trafficking conspiracy which obtained cocaine in Texas and distributed the cocaine in the Monroe County and Northampton County areas in 2011.
Gutierrez-Esquea also faces deportation proceedings.
In addition to the prison term, Senior Judge Kosik also ordered that Gutierrez-Esquea be supervised by a probation officer for three years following his prison sentence if he is not deported.
Previously, Dickson Gutierrez, age 37, and Jhonathan Gutierrez-Esquea, age 33, both formerly of Stroudsburg, were sentenced to 60 months in prison for participating in the same cocaine-trafficking conspiracy. As part of his plea agreement, Dickson Gutierrez also agreed to forfeit to the United States two properties in the Dominican Republic which were purchased with the proceeds of cocaine trafficking activity.
The investigation was conducted by the Drug Enforcement Administration, the Stroud Area Regional Police Department and the Internal Revenue Service, Criminal Investigations.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
Mexican Citizen Residing in Adams County IndictedRead the Press Release
For Document Fraud
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigrations and Customs Enforcement, announced that a citizen of Mexico has been charged with Fraud and Misuse of Documents.
According to United States Attorney Peter J. Smith, Hermelando Murrieta-Jimenez, age 26, a native and citizen of Mexico, in the United States illegally, was charged on October 9 in a one-count indictment by a federal grand jury in Harrisburg.
The indictment alleges that on September 11, 2013, Murrieta-Jimenez did knowingly possess, use, or attempt to use a fraudulent permanent resident card and social security card in Adams County, Pennsylvania.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement and Homeland Security Investigations. It is being prosecuted by Special Assistant United States Attorney Brian G. McDonnell.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Mary Agnes Leider Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on October 22, 2013, before U.S. District Judge Donald W. Molloy, MARY AGNES LEIDER, a 25-year-old resident of Crow Agency and an enrolled member of the Crow Tribe of Indians, was sentenced to a term of:
- ison: 262 months
- ecial Assessment: $100
- stitution: $11,113.25
- pervised Release: 5 years
LEIDER was sentenced in connection with her guilty plea to second degree murder.
In an Offer of Proof filed by Assistant U.S. Attorneys Jessica T. Fehr and Lori Harper Suek, the government stated it would have proved at trial the following:
On December 3, 2012, at approximately 4:06 a.m., 911 operators from the Big Horn County Sheriff's Office began receiving phone calls that they identified as coming from the area of mile marker 11 on Highway 313, south of Hardin. Operators dispatched law enforcement and an ambulance in response.
When they arrived at the scene, law enforcement found LEIDER and her brother, A.L., sitting off to the side of the road, crying uncontrollably. LEIDER told law enforcement that her baby was "gone", and had been hit by a vehicle. As additional law enforcement officers arrived, there was another 911 call that dispatched additional law enforcement to mile marker 19, Highway 313, to respond to another 911 emergency call regarding a deceased 3-year-old child. Upon arrival at the scene, law enforcement were met by G.D. and her son, W.L. G.D. is the mother of LEIDER, A.L., and W.L. G.D. took an officer to her car, where the officer found a 3-year-old female. The child was examined and appeared to already be deceased. The child was identified as LEIDER's daughter.
Later on that day, law enforcement interviewed G.D. She advised that her daughter, LEIDER, and her two sons had been out partying during the evening of December 2, 2012, and had taken the victim with them. G.D. reported that she had repeatedly called and text-messaged her children in order to have LEIDER come home with the victim, but LEIDER refused. Early in the morning hours of December 3, 2012, G.D. reported that she left to find LEIDER and the victim, and was traveling towards Hardin. As she was traveling north on Highway 313, she saw LEIDER's pickup traveling towards her. Both vehicles stopped, and G.D. saw that LEIDER's pickup was being driven by W.L. W.L. told Ms. Denny that something was wrong with the victim - LEIDER's three-year-old daughter. G.D. saw the victim in the back seat, and realized she was not breathing and not responsive. W.L. told G.D. that LEIDER had thrown the victim from the pickup. When G.D. picked the victim up, she saw blood coming from the back of her head. She called an ambulance and put the victim in her car.
W.L. was interviewed by law enforcement and reported that he was driving LEIDER's pickup early in the morning on December 3, 2012. W.L. reported that LEIDER was seated in the front passenger's seat, with the victim on her lap. At the time, the victim was quiet, but awake. While they were driving south towards St. Xavier, LEIDER opened the front passenger door with her right hand, and threw the victim out of the moving pickup. W.L. and the reconstructionist from the Montana Highway Patrol estimated the truck was traveling between 45 and 51 miles per hour at the time the victim was thrown from the truck. W.L. stopped as fast as he could, and threw LEIDER out of the truck with A.L. W.L. went back down the road behind the truck to where the victim was lying in the roadway. W.L. reported that he knew she was dead, but carried her back to the truck and placed her in the back seat. He began driving towards home, leaving LEIDER and his brother A.L. by mile marker 11 where they were ultimately found by law enforcement a short time later.
Following the arrival of law enforcement at the scene, LEIDER was taken to Hardin Memorial Hospital to have her blood drawn, and for treatment for abrasions to her face. Her blood alcohol level was found to be over a .24 when analyzed by the FBI Laboratory. While there, she alternated between saying, "I killed my baby" and claiming that the group had a car accident and that was how the victim had died. When questioned by law enforcement, LEIDER admitted that she had been driving around and drinking with her brothers, but claimed that she hit her face on the dashboard and could not recall how the victim was killed. LEIDER's pickup was impounded and towed to a law enforcement facility for analysis. The right front passenger door was analyzed by a professional mechanic and it was found that the door functioned properly.
An autopsy was conducted of the victim. Following the autopsy, the victim's probable cause of death was determined to be severe head injuries caused when thrown from a moving motor vehicle.
The crime occurred within the exterior boundaries of the Crow Indian Reservation.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that LEIDER will likely serve all of the time imposed by the court. In the federal system, LEIDER 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 Bureau of Indian Affairs and the Federal Bureau of Investigation.
Man Who Posed as Wellsville Doctor Sentenced for Health Care FraudRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Fitzgerald Anthony Hudson, 53, formerly of Western New York, who was convicted of health care fraud for lying about his qualifications to practice medicine, was sentenced to 24 months in prison and three years supervised release by Chief U.S. District Chief Judge William M. Skretny. The defendant was also ordered to pay restitution in the amount of $227,548.35.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that in August 2008, the defendant submitted an application and was later accepted to work as a doctor in the Emergency Department at Jones Memorial Hospital in Wellsville, N.Y. In his August application, the defendant stated that (1) he had earned a degree from York University in Ontario, Canada, (2) he had never voluntarily withdrawn or resigned any employment or privileges at any healthcare facility in order to avoid the imposition of disciplinary measures, and (3) he had never been denied or suspended from any healthcare facility. In fact, the defendant did not have a degree from York, had been suspended from his duties as a resident and dismissed from the residency program due to academic incompetence at the Warren Hospital Family Practice Residency Program in Phillipsburg, New Jersey, and had resigned from the Claxton-Hepburn Medical Center in Ogdensburg, New York after being told he would be terminated for poor performance.
During the course of this prosecution, the government presented evidence that while employed at Jones Memorial Hospital, Hudson treated a five year old child who subsequently died shortly after being treated by the defendant. That case is now the subject of an ongoing wrongful death civil suit in state court. The government further introduced a New York State Board of Professional Medical Conduct investigation which concluded that the defendant obtained his medical license by fraud and while practicing medicine, and engaged in gross negligence and gross incompetence with at least five patients.“Each and every day, people across this country place their lives and their health – as well as the lives and health of their families - into the hands of those they believe to be trained medical professionals,” said U.S. Attorney Hochul. “Such medical visits are always accompanied by the highest level of trust and hope that the person we are seeing is actually qualified to provide the care for which we are seeking treatment. It is difficult to imagine a more egregious case of health care fraud than this – where a person lies in order to become an Emergency Room physician, had been twice previously cited for incompetence and poor performance, and in fact was not a legitimate doctor at all. This Office will continue to crack down on all types of health care fraud and will vigorously prosecute those who lie about their qualifications to practice medicine.”
As for the defendant’s offense of conviction, the government established that once the defendant illegally obtained his medical staff appointment, Delphi Healthcare, Hudson’s employer, billed and received approximately $227,548.35 from Medicare, BlueCross BlueShield of Western New York, Univera Healthcare, and Independent Health for services rendered by the defendant.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Brian P. Boetig, Special Agent in Charge, Special Agents of the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations under the direction of Thomas O'Donnell, Special Agent in Charge, and Investigators with the Medicaid Fraud Control Unit of the New York State Attorney General’s Office.Man Sentenced to 15 Years in Prison for Transporting 16-Year-Old Girl from California to Reno for ProstitutionRead the Press Release
RENO, Nev. – A man who transported a 16-year-old girl from Sacramento, Calif., to Reno, Nev. in July 2010 for the purposes of prostitution, has been sentenced to 15 years in prison and lifetime supervised release, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Adam Scott, 27, of Fort McDermitt, Nev., was sentenced on Monday, Oct. 21, 2013, by U.S. District Judge Larry R. Hicks. Scott pleaded guilty on July 25, 2013, to one count of sex trafficking of a minor.
“Using undue influence and force to coerce a minor to engage in sex is despicable,” said U.S. Attorney Bogden. “Our law enforcement partners will continue to aggressively search out these sexual predators and our office will continue to aggressively prosecute these child exploitation cases to protect our community and our children.”
According to the court records, on July 31, 2010, Scott transported a 16-year-old girl from Sacramento to Reno for the purpose of using her for prostitution. Scott knew that the girl was not 18 years old. Scott refused to return the girl to Sacramento and maintained her in Reno until about Aug. 11, 2010. Scott used undue influence and force, including physical assault, in order to cause the girl to engage in commercial sex acts.
The investigation was conducted by the Innocence Lost Task Force made up of the FBI and the Reno Police Department’s Street Enforcement Team. The case was prosecuted by Assistant United States Attorney Carla Higginbotham.
The case has been brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Major Drug Trafficker Receives 14 Year SentenceRead the Press Release
ATLANTA - Otis Henry has been sentenced to 14 years in prison for trafficking over 700,000 pills of BZP, a drug similar to ecstasy.
“Based on the staggering amount of drugs in the case, the defendant earned every day of his prison sentence,” said United States Attorney Sally Quillian Yates. “To those tempted by the allures of the drug trade like cars, cash, and jewelry – think twice. It’s more likely that you’ll be wearing an orange jumpsuit than a gold watch.”
Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division commented, “The use of a number of synthetic designer drugs continues to be a major concern in this country. Benzylpiperine, like any other synthetic stimulant, is dangerous and can lead to adverse effects such as severe convulsions or even death. Because of the hard work and dedication of all of the law enforcement agencies involved, Henry will not be able to see the outside of prison for a long time.”
According to United States Attorney Yates, the charges and other information presented in court: From at least February 2010 to October 2010, Henry was a major distributor of BZP and marijuana in the metropolitan Atlanta area. In one instance, on October 1, 2010, law enforcement officers obtained a warrant to search Henry’s residence in DeKalb County. Inside the home, officers seized approximately 700,000 tablets of BZP which was one of the largest domestic seizures of the drug in U.S. history. In particular, officers found the pills hidden in the walls of the house, behind insulation, under seat cushions, and in crawl spaces. Officers also recovered a handgun, 2 pounds of marijuana, $39,000 in cash, and over 150 grams of methamphetamine from the residence. The street value of the drugs is estimated at $2.8 million.
After agents executed the search warrant, Henry fled and evaded authorities for over a year. Ultimately, in January 2012, Henry was arrested in Tampa, Fla. Thereafter, agents searched Henry’s hotel room and recovered 4 pounds of marijuana and $3,300 in cash.
Henry, 43, of DeKalb County, Ga., was sentenced to 14 years in prison to be followed by three years of supervised release. Henry pleaded guilty on July 24, 2013.
This case was investigated by the Drug Enforcement Administration and the DeKalb County Police Department.
Assistant United States Attorneys Jeffrey W. Davis, Dahil Goss, Jeffrey Viscomi, and Skye Davis prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Mail-order Diabetic Supply Company and Its Owners Resolve Allegations of Civil and Criminal Fraud Arising from Kickback PaymentsRead the Press Release
The owners of Kansas-based Global Medical Direct, LLC and Global Medical Inc., Robert Shea and Mark Franz, have agreed to pay $7 million to resolve allegations against them in connection with a scheme to submit false claims to the federal Medicare and Tricare healthcare programs, announced United States Attorney Kenneth Allen Polite, Jr. from the Eastern District of Louisiana along with United States Attorney Barry Grissom, from the District of Kansas. The companies have also agreed to pay to the United States $5 million in proceeds from the sale of all of the companies’ assets to settle civil allegations under the False Claims Act. Shea and Franz will also receive twenty-year exclusions from participation in any federal healthcare program as part of the settlement.
Global Medical, Inc. and its parent company, Global Medical Direct, LLC, are mail-order diabetic supply companies. The United States contends that, between April 1, 2008 and January 31, 2012, owners Robert Shea and Mark Franz caused Global Medical and Global Medical Direct to enter into numerous marketing contracts with insurance brokerage and other companies with customer bases likely to have a high percentage of diabetes patients and paid these companies based on the number of patients referred for diabetic supplies. The Anti-Kickback Statute makes it unlawful to pay or receive remuneration for patient referrals because of the high-potential for billing abuse to Federal programs, such as Medicare, resulting from these types of arrangements.
The settlement resolves the companies’ and its owners’ civil and criminal liability for their participation in the wrongdoing.
The investigation and prosecution of the companies and their owners was conducted jointly by the U. S. Attorney’s Offices for the District of Kansas and the Eastern District of Louisiana, the Office of the Inspector General for the Department of Health and Human Services, and the Federal Bureau of Investigation.
“This joint effort sends a strong message to those that would abuse federally-funded healthcare programs – we will employ all available avenues to punish those that take advantage of the system,” said Kenneth Polite, U. S. Attorney for the Eastern District of Louisiana.
“We are happy to partner with our sister districts to insure that fraud, waste and abuse are discovered and punished wherever found,” said Barry Grissom, U. S. Attorney for the District of Kansas.
"Patients have a right to expect that medical suppliers have justly earned the opportunity to win government business," said Mike Fields, Special Agent in Charge, Office of Inspector General, U.S. Department of Health and Human Services, of the region including Louisiana. "Besides the dollar settlement, two of Global's owners are now banned from government health programs for at least the next two decades."
Mail-Order Diabetic Supply Company and Its Owners Resolve Allegatiions of Civil and Criminal FraudRead the Press Release
The following is a joint release from the U.S. Attorney’s Office for the Eastern District of Louisiana and the U.S. Attorney’s Office for the District of Kansas.
NEW ORLEANS, LOUISIANA – The owners of Kansas-based Global Medical Direct, LLC and Global Medical Inc., Robert Shea and Mark Franz, have agreed to pay $7 million to resolve allegations against them in connection with a scheme to submit false claims to the federal Medicare and Tricare healthcare programs, announced United States Attorney Kenneth Allen Polite, Jr. from the Eastern District of Louisiana along with United States Attorney Barry Grissom, from the District of Kansas. The companies have also agreed to pay to the United States $5 million in proceeds from the sale of all of the companies’ assets to settle civil allegations under the False Claims Act. Shea and Franz will also receive twenty-year exclusions from participation in any federal healthcare program as part of the settlement.
Global Medical, Inc. and its parent company, Global Medical Direct, LLC, are mail-order diabetic supply companies. The United States contends that, between April 1, 2008 and January 31, 2012, owners Robert Shea and Mark Franz caused Global Medical and Global Medical Direct to enter into numerous marketing contracts with insurance brokerage and other companies with customer bases likely to have a high percentage of diabetes patients and paid these companies based on the number of patients referred for diabetic supplies. The Anti-Kickback Statute makes it unlawful to pay or receive remuneration for patient referrals because of the high-potential for billing abuse to Federal programs, such as Medicare, resulting from these types of arrangements.
The settlement resolves the companies’ and its owners’ civil and criminal liability for their participation in the wrongdoing.
The investigation and prosecution of the companies and their owners was conducted jointly by the U. S. Attorney’s Offices for the District of Kansas and the Eastern District of Louisiana, the Office of the Inspector General for the Department of Health and Human Services, and the Federal Bureau of Investigation.
“This joint effort sends a strong message to those that would abuse federally-funded healthcare programs – we will employ all available avenues to punish those that take advantage of the system,” said Kenneth Polite, U. S. Attorney for the Eastern District of Louisiana.
“We are happy to partner with our sister districts to insure that fraud, waste and abuse are discovered and punished wherever found,” said Barry Grissom, U. S. Attorney for the District of Kansas.
"Patients have a right to expect that medical suppliers have justly earned the opportunity to win government business," said Mike Fields, Special Agent in Charge, Office of Inspector General, U.S. Department of Health and Human Services, of the region including Louisiana. "Besides the dollar settlement, two of Global's owners are now banned from government health programs for at least the next two decades."Madison Man Receives 45 Month Sentence for CounterfeitingRead the Press Release
Calvin Strange, age 48, of Madison, Tennessee, was sentenced yesterday by U.S. District Judge Aleta A.Trauger, to serve 45 months in prison, followed by 3 years of supervised release, for using a counterfeiting device to produce counterfeit U.S. currency, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.
On July 15, 2013, Strange pleaded guilty to possession of counterfeit currency. Evidence offered at the plea hearing established that in August 2011 Strange possessed 26 uncut pages of paper with four counterfeit $5 bills on each page, as well as 144 additional counterfeit $5 bills. In addition, Strange admitted that he knew that these bills were counterfeit and that he possessed a counterfeiting device or materials used for counterfeiting.
“Counterfeit currency causes great harm to a range of unknowing victims, from small, local businesses to large financial institutions,” said Acting U.S. Attorney David Rivera. “This sentence should send a message that federal law enforcement will continue to aggressively investigate and prosecute counterfeiting offenses.”
This case was investigated by agents of the United States Secret Service, with assistance from the Metropolitan Nashville Police Department. The case was prosecuted by Assistant United States Attorney William F. Abely.Las Vegas Street Gang Member Sentenced to Life in Prison_for Racketeering, Murder, Firearm, and Drug ChargesRead the Press Release
A member of the Playboy Bloods street gang was sentenced today to life in prison for the retaliation murder of a man in November 2004 and the armed robbery of a Henderson, Nev., casino in 2002, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Daniel G. Bogden of the District of Nevada.
Jacorey Taylor, aka “Mo-B,” 30, who was convicted by a jury in May 2013, was sentenced by U.S. District Judge Robert C. Jones. Taylor was convicted of engaging in a racketeering (RICO) conspiracy, committing violent crimes in aid of racketeering activity, using a firearm during a crime of violence, participating in a drug conspiracy, and possessing crack cocaine with the intent to distribute. He is the ninth gang member to be convicted out of 10 charged in a RICO indictment filed in 2008. The remaining defendant, Markette Tillman, 31, is awaiting trial.
Taylor and co-defendants Reginald Dunlap, aka “Bowlie,” and Steven Booth, aka “Stevie-P,” were convicted of participating in the murder of Billy Ray Thomas, who was shot multiple times in the back on the morning of Nov. 1, 2004, as he worked on a car in the parking lot of the Pecos Terrace Apartments while waiting to take his girlfriend to work. The defendants murdered Thomas due to their mistaken belief that Thomas was a member of a rival street gang. According to evidence presented at trial, two car loads of Playboy Bloods members and associates, including Taylor, Dunlap, Booth and others, drove through known Crip neighborhoods searching for rivals to retaliate against for the murder of Quaza Burns, a leader of the Playboy Bloods. The victim, Billy Ray Thomas, had no gang affiliation.
Evidence produced at trial also showed that on March 21, 2002, Taylor, armed with an AR-15 style assault rifle, and another man armed with an handgun entered the Klondike Casino in Henderson, forced their way behind the casino cage, and robbed the casino of over $7,000 in currency.
Dunlap and Booth pleaded guilty to racketeering conspiracy charges during Taylor’s trial and were each sentenced in April 2013 to 20 years in prison. There is no parole in the federal criminal justice system.
According to court documents and evidence produced at trial, the Bloods are a nationally known criminal street gang whose members engage in drug trafficking and acts of violence. The Playboy Bloods is a local “set” or affiliate of the Bloods, with local control and operation within the Las Vegas metropolitan area. Other Bloods sets within the Las Vegas metropolitan area include the Piru Bloods and the West Coast Bloods. A subset of the Playboy Bloods is the Full Throttle Clique, a group made up of Playboy Bloods members who engage in acts of violence, including murder. According to evidence presented at trial, Taylor, Dunlap, and Booth were all members of the “Full Throttle Clique” of the Playboy Bloods. Taylor, along with other Playboy Bloods enterprise members, operated drug houses in the Sherman Gardens Annex (also known as “The Jets”) and the surrounding areas.
Eight other defendants who have been convicted and sentenced, as follows:
• Steven Booth, aka “Stevie-P,” 27, pleaded guilty to RICO conspiracy and was sentenced to 20 years in prison on April 10, 2013
• Reginald Dunlap, aka “Bowlie,” 30, pleaded guilty to RICO conspiracy and was sentenced to 20 years in prison on April 9, 2013
• Demichael Burks, aka “Mikey P,” 29, pleaded guilty to RICO conspiracy and was sentenced to 6½ years in prison on Dec. 3, 2010
• Anthony Mabry, aka “Akim Slim,” 43, pleaded guilty to RICO conspiracy and was sentenced to 14 years in prison on Oct. 20, 2010
• Delvin Ward, aka “D-Luv,” 37, pleaded guilty to RICO conspiracy and was sentenced to 11 years in prison on Sept. 17, 2010
• Terrence Thomas, aka “Seven,” 40, pleaded guilty to drug conspiracy and was sentenced to 10 years in prison on June 16, 2010
• Sebastian Wigg, aka “Rock,” 36, pleaded guilty to drug conspiracy and was sentenced to five years in prison on March 29, 2010
• Fred Nix, aka “June P,” 36, pleaded guilty to drug conspiracy and was sentenced to five years in prison on March 29, 2010
The cases were investigated by the FBI’s Las Vegas Safe Streets Gang Task Force, which includes officers from the North Las Vegas Police Department and Las Vegas Metropolitan Police Department, and are being prosecuted by Assistant United States Attorneys Nicholas D. Dickinson, and Phillip N. Smith, Jr., and Kevin L. Rosenberg, Trial Attorney with the U.S. Department of Justice Organized Crime and Gang Section.
Kansas City Man Pleads GuiltyIn Bank Robbery with HatchetRead the Press Release
KANSAS CITY, KAN. - A Kansas City, Mo., man has pleaded guilty in a case in which an Overland Park bank was robbed by a man with a hatchet, U.S. Attorney Barry Grissom said today.
Derek T. Brownlee, 35, Kansas City, Mo., pleaded guilty to one count of armed robbery. A criminal complaint filed in July alleged Brownlee was wearing a bandanna over his face and carrying a hatchet on July 1, 2013, when he robbed the Metcalf Bank at 7800 College Boulevard in Overland Park.
The complaint alleged Brownlee jumped the teller’s counter and demanded money. He took cash from a drawer and some personal items from a teller including a Kindle Fire and a cellular telephone. When police officers spotted his car, he led them on a chase at speeds up to 90 miles an hour before being stopped in the 8700 block of Indiana in Kansas City, Mo. He was arrested after he fled from the car on foot.
Sentencing is set for Jan. 21. He faces a maximum penalty of 20 years and a fine up to $250,000. Grissom commended the FBI, the Overland Park Police Department, the Kansas City, Mo., Police Department and Assistant U.S. Attorney Kim Martin for their work on the case.
Kansas City Man Pleads Guilty to Robbery, Carjacking, Firearms ChargeRead the Press Release
KANSAS CITY, KAN. - A Kansas City, Kan., man has pleaded guilty to federal charges arising from an armed robbery and a carjacking, U.S. Attorney Barry Grissom said today.
Derrick L. Freeman, 28, Kansas City, Kan., pleaded guilty to one count of armed robbery, one count of carjacking, and one count of unlawful possession of a firearm after a felony conviction.
In his plea, Freeman admitted that on May 12, 2013, he and his co-defendants went to the home of a Kansas City, Kan., man to buy some synthetic marijuana. Once there, they robbed the man at gunpoint. During the robbery, Freeman fired a handgun and then fled the scene before police arrived.
On May 26, 2013, Freeman and co-defendants walked to a Stop Shop gas station at 6865 State Avenue in Kansas City, Kan., where Freeman suggested they “get a car.” They robbed the driver of a 2004 Ford Freestar minivan of wallet and keys and drove away in the minivan. When the defendants realized officers had spotted their vehicle they led police on a 17-minute chase at speeds up to 112 miles per hour. The minivan wrecked in a plowed field near Leavenworth Road and North 184th Street in Basehor, Kan., where the defendants fled on foot. Derrick Freeman fired a handgun at a law enforcement officer before being arrested.
Freeman will be sentenced at a later date. Both parties have agreed to recommend a sentence of 300 months in federal prison.
Co-defendants include: Joe Freeman, 33, Kansas City, Kan., who is awaiting trial.
Jeffrey B. Jackson, 47, Leavenworth, Kan., who is awaiting trial.
Terry D. Tillman, 26, Kansas City, Kan., who is set for sentencing Nov. 12.
Anthony L. Irvin, 19, Kansas City, Kan., who is set for sentencing Nov. 25.
Melvin L. Shields, 20, Kansas City, Kan., who is set for sentencing Nov. 25.Grissom commended the Kansas City, Kan., Police Department, the Wyandotte County Sheriff’s Department, the Kansas Highway Patrol, the Basehor Police Department, the Edwardsville Police Department, the Bonner Springs Police Department, the Leavenworth County Sheriff’s Department and Special Assistant U.S. Attorneys Erin Tomasic and Trent Krug for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
KC Business Owner Pays $78,000 to City of Nixa as Restitution for Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., business owner has paid $78,810 in restitution to the city of Nixa, Mo., as part of a pretrial diversion agreement.
Gary N. Cohn of Kansas City was the subject of a federal investigation for his role in a mail fraud conspiracy. Cohn operates GNC, a Kansas City business that distributes a variety of products to municipalities and other customers. Cohn was identified during a federal criminal investigation that resulted in the indictment and conviction of former Nixa city employees Larry Covington and David Griggs. Covington and Griggs were involved in a scheme to defraud the city of Nixa of more than $756,000 from October 2004 to February 2009.
Covington and Griggs each pleaded guilty to conspiracy to commit mail fraud, conspiracy to commit money laundering, theft from an organization receiving federal funds; Covington also pleaded guilty to one count of mail fraud. Covington was sentenced on Nov. 9, 2010, to nine years in federal prison without parole. Griggs was sentenced on July 26, 2010, to two years and eight months in federal prison without parole.
Cohn maintained a business relationship with the city of Nixa through Covington, who was the city’s street superintendent. Cohn billed the city of Nixa, by mail, for goods that were delivered to Covington for his personal use and for products that were not delivered or were not what was represented.
Under the terms of his pretrial diversion agreement, which was signed on Sept. 30, 2013, the prosecution of the offense was deferred for 18 months while Cohn is placed under supervision and required to pay $78,810 in restitution. Cohn paid that restitution on Monday, Oct. 21, 2013.
Cohn also agreed that he would not conduct any business with any municipality, school district, or other public entity in the southern and southwestern portion of the Western District of Missouri during the 18-month period of supervision.
According to a statement of agreed facts that was signed by Cohn, Covington routinely ordered products from Cohn and GNC at the same time he made fraudulent purchases amounting to approximately $750,000 through dummy companies. Nixa public works department employees reported that specific products ordered from Cohn and GNC were never delivered and could not be located in inventory at any city facility. In fact, the Nixa public works department did not have adequate space to store the quantity of products billed by GNC.
According to Nixa public works department employees, GNC sometimes supplied products that were significantly more expensive than similar products. Numerous products purchased from GNC demonstrated grossly exaggerated prices, one of which was more than 1,339% higher than the suggested retail value of the product.
Cohn admitted that he paid $3,100 to establish an account for Covington at the Show-Me Birds Hunting Resort located in Baxter Springs, Kan. Covington used this account to pay for hunting trips. In a statement to the owner of the hunting resort, Cohn said that he was making the payments in order to "take care of” Covington so that he would continue to buy products from him.
If Cohn violates the conditions of the pretrial diversion agreement, he could be prosecuted for the alleged criminal conduct. If Cohn completes the diversion program and fulfills all the terms and conditions of the agreement, no prosecution will be instituted and the matter will be closed.
The criminal case involving Covington and Griggs was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Nixa, Mo., Police Department, the FBI and IRS-Criminal Investigation.
Indictment Charges Four with Running Illegal Gambling OperationRead the Press Release
PHILADELPHIA – An indictment was unsealed today in Philadelphia charging Anthony Gifoli, 65, Frank Tulino, 66, Vincent Simoni, 64, and James Matteis, 58, all of Philadelphia, with conducting an illegal gambling business, announced U.S. Attorney Zane David Memeger, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, and FBI Special Agent-in-Charge Edward J. Hanko.
According to the indictment, Gifoli, Tulino, Simoni, and Matteis operated a sports bookmaking operation in Philadelphia from January 27, 2009 through November 1, 2010. All of the defendants were arrested yesterday.
If convicted, each defendant faces a maximum penalty of five years in prison and a $250,000 fine.
The case is being investigated by the FBI and the New Jersey State Police. It is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Indiana County Man Sentenced to 27 Months in Prison for Fraud SchemeRead the Press Release
PITTSBURGH – A resident of Indiana County, Pa., has been sentenced to 27 months in prison and three years supervised release for his conviction of conspiracy, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Daniel Pikel,57.
According to the information presented to the court, between 2009 and 2012, Pikel conspired with another person to launder through his business banking account approximately $2.9 million in funds embezzled by a former company officer from Falcon Drilling, LLC, a drilling contractor located in Indiana, Pa.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
The United States Postal Inspection Service, the U.S. Internal Revenue Service - Criminal Investigation and the Pennsylvania State Police in Indiana, Pennsylvania, conducted the investigation that led to the prosecution of Daniel Pikel.
Illinois Man Charged with Fraudulent Scheme Involving Impersonation of Canadian Government OfficialsRead the Press Release
BROOKLYN, NY – Howard Leventhal, 56, was arrested this morning for defrauding a Florida company of $800,000 and attempting to defraud an undercover law enforcement agent in Brooklyn of more than $2.5 million, by falsely claiming that his company, Neovision USA, Inc. (“Neovision”), had a lucrative contract with Canada’s Department of Health (“Health Canada”). The defendant’s initial appearance for removal proceedings to the Eastern District of New York is scheduled this afternoon before United States Magistrate Judge Michael T. Mason, at the Everett McKinley Dirksen United States Courthouse in Chicago, Illinois.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
According to the complaint unsealed this morning in Brooklyn federal court, in May 2012, Leventhal entered into a factoring agreement with Paragon Financial Group, Inc. (“Paragon”), a Florida company, whereby Paragon would advance Neovision $800,000 in exchange for Paragon’s right to collect a larger sum of money purportedly owed to Neovision by Health Canada. Health Canada’s indebtedness to Neovision was purportedly based on an agreement between Neovision and Health Canada, whereby Neovision would provide Health Canada with “Heltheo’s McCoy Home Health Tablet,” a device ostensibly named after the fictional Dr. Leonard McCoy of TV’s Star Trek series.1 To conceal his scheme, Leventhal assumed the identities of Health Canada representatives, including that of former Deputy Health Minister Glenda Yeates. Further, Leventhal created and used domain names, telephone numbers, and email addresses that closely resembled those actually used by Health Canada. For example, Leventhal created and used healthcanada.com.co and hc-sg-gc.ca in place of Health Canada’s true domain name hc-sc.gc.ca.
Contrary to Leventhal’s representations to Paragon, (1) there was no agreement between Health Canada and Neovision, (2) Health Canada did not owe Neovision any money, and (3) Deputy Health Minister Glenda Yeates’ signature on the agreement was a forgery. Believing his misrepresentations, Paragon advanced Leventhal $800,000. To date, Paragon has neither received a payment from Health Canada nor received a refund from Leventhal.
As alleged in the complaint, Leventhal also attempted to defraud a potential investor, who in reality was an undercover law enforcement agent posing as a high net worth individual, in Brooklyn, New York, of more than $2.5 million. In recorded conversations, Leventhal falsely represented that his company had a series of contracts with Health Canada for Heltheo’s McCoy Home Health Tablet and that his company had more than $18 million in sales for 2012. Leventhal emailed the undercover agent the same fraudulent agreement he used to deceive Paragon. To further induce the undercover agent to invest in his company, Leventhal sent him six months of phony Bank of America statements for Neovision that falsely showed more than $10 million in payments from Health Canada to Neovision from March 2013 through July 2013. Neovision’s actual bank statements for the same account and time period do not show any payments from Health Canada.
“As alleged, Leventhal claimed to have lucrative connections within the Canadian government and cutting edge technology that could help save lives. In reality, his scheme was pure science fiction, complete with phony documents and a fictional medical device. As part of his alternate reality, Leventhal impersonated Canadian government officials by creating phony government contracts, telephone numbers, and email addresses. Investors thought they were advancing scientific technology; instead they were merely financing Leventhal’s fraudulent scheme. Leventhal’s scheme was foiled due to the swift and effective actions of law enforcement both here and in Canada,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the Royal Canadian Mounted Police (RCMP) and Health Canada for their significant cooperation and assistance in the investigation.
FBI Assistant Director-in-Charge Venizelos stated, “As alleged in the complaint, Leventhal concocted a scheme to defraud potential investors of their money based upon misrepresentations, forgeries, and lies. After stealing money from Paragon, Leventhal aggressively pursued his next victim-investor who, unbeknownst to him, was an undercover law enforcement agent. The FBI will use all investigative resources at its disposal to combat cases of fraud and will continue to work with its law enforcement partners to ensure that individuals who line their pockets by defrauding investors are brought to justice.”
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a maximum sentence of 20 years’ imprisonment.
The government’s case is being prosecuted by Assistant United States Attorney Winston M. Paes.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency task force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The Defendant
HOWARD LEVENTHAL
Age: 56
Long Grove, Illinois_____________________________
1 Leventhal claimed that Heltheo’s McCoy Home Health Tablet can instantaneously and effectively deliver detailed patient data to physicians and other licensed medical care providers.
Huntsville Resident Convicted of Distributing Child PornographyRead the Press Release
HOUSTON – Reed Christopher LeBlanc, 20, a former resident of Huntsville, has entered a plea of guilty to distribution of child pornography, announced United States Attorney Kenneth Magidson.
The investigation started as a result of several downloads of child pornography over the Internet by a federal agent with the New York office of the FBI which were traced to a computer used by LeBlanc.
On Dec. 3, 2012, federal agents served a search warrant at LeBlanc’s Huntsville address and seized his Apple computer. A forensic exam was conducted, revealing approximately 82 images and 33 videos of child pornography.
U.S. District Judge Nancy Atlas, who accepted the guilty plea, has set sentencing for Jan. 14, 2014, at which time Leblanc faces at least five and up to 20 years imprisonment as well as a possible $250,000 fine. Upon completion of any prison term imposed, LeBlanc also faces a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet. He will remain in custody pending that hearing.
The charges against were the result of an investigation conducted by the FBI and officers with the Houston Metro Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Robert Stabe, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Hartford Woman Who Illegally Received Social Security Benefits Is SentencedRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that THERESA FORD, 55, of Hartford, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to three years of probation for illegally receiving Social Security benefits.
According to court documents and statements made in court, FORD began receiving Social Security Administration (SSA) Disability Insurance Benefits (DIB) in May 2007. From approximately January 2007 through September 2011, FORD worked as a secretary for a small business, and her duties included managing time cards and payroll records for all of the business’s employees. During this time, FORD’s income from her work as a secretary was more than the SSA Monthly Substantial Gainful Activity (SGA) limit, which, if known by the SSA, would have terminated her eligibility for SSA DIB payments. The payroll records prepared by FORD that her employer used to draft payroll checks accurately reflected her earnings. However, the payroll summary ledgers prepared and sent by FORD to the business’s accountants under reported the amount of money that she was actually paid. FORD’s earnings were reported to SSA based on the false payroll summary ledgers. By reporting less than the SGA limit to SSA, FORD was able to remain eligible and continue to unlawfully receive SSA DIB payments.
FORD stopped working at the business in September 2011 and she continued to unlawfully receive DIB payments through December 2012.
FORD received a total of $56,780 in DIB payments that she was not eligible to receive. Today, she was ordered to pay full restitution.
On June 13, 2013, FORD waived her right to indictment and pleaded guilty to one count of theft of government property.
This matter was investigated by the Office of the Inspector General for the Social Security Administration and was prosecuted by Assistant U.S. Attorney Felice Duffy.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Getaway Driver in the Robbery of A Dunmore Bank Pleads GuiltyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Vanessa Ramos, age 23, of Wilkes-Barre, Pennsylvania, pleaded guilty today to aiding and abetting the robbery of a Dunmore bank before Senior United States District Court Judge James M. Munley.
According to United States Attorney Peter J. Smith, Ramos appeared in federal court in Scranton, Pennsylvania, and admitted that she acted as a getaway driver for Romeal Price in the robbery of the Pennstar Bank, 1230 O’Neill Highway, Dunmore, Pennsylvania, of approximately $11,000 on June 28, 2013. At the time of the bank robbery, Price was a fugitive following his escape from the Catholic Social Services Residential Reentry Center on June 18, 2013. Price had been housed there while completing the remaining few months of a 15-year federal prison sentence from 2001. Following the bank robbery, Price fled to New York City. On July 17, 2013, deputies of the United States Marshals Service arrested Price in a New York City apartment without incident. On September 6, 2013, Price, age 36, appeared in Federal Court in Scranton and admitted to the escape and bank robbery charges.
The case was investigated by the United States Marshals Service, the Federal Bureau of Investigation, and the Dunmore Police Department. The case is being prosecuted by Assistant U.S. Attorney John Gurganus.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Georgia Real Estate Investment Company and Owner Plead Guilty to Conspiracies to Rig Bids and Commit Mail Fraud for the Purchase of Real Estate at Public Foreclosure AuctionsRead the Press Release
A Georgia real estate investor and his company pleaded guilty today for their role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Georgia, the Department of Justice announced.
Separate felony charges were filed on Sept. 25, 2013, in the U.S. District Court for the Northern District of Georgia in Atlanta, against Penguin Properties LLC and its owner, Seth D. Lynn.
According to court documents, from at least as early as Feb. 6, 2007 until at least Jan. 3, 2012, Penguin Properties and Lynn conspired with others not to bid against one another, but instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in Fulton County, Ga. Penguin Properties and Lynn were also charged with a conspiracy to use the mail to carry out a scheme to fraudulently acquire title to selected Fulton County properties sold at public auctions, to make and receive payoffs and to divert money to co-conspirators that would have gone to mortgage holders and others by holding second, private auctions open only to members of the conspiracy. The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions.
Charges were also brought against Penguin Properties and Lynn for their involvement in similar conspiracies in DeKalb County, Ga., from at least as early as July 6, 2004 until at least Jan. 3, 2012.
“Today’s charges are the first to be filed in the state of Georgia in the Antitrust Division’s ongoing investigation into anticompetitive conduct in real estate foreclosure auctions,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The division’s investigation has already resulted in dozens of guilty pleas in other states, and the division remains committed to eliminating anticompetitive practices at foreclosure auctions.”
The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at Fulton and DeKalb County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner.
“The core of this case was about an unlevel field and one of unfairness with regard to the auction/bidding process of foreclosed properties,” said Mark F. Giuliano, Special Agent in Charge of the FBI Atlanta Field Office. “The FBI remains committed in providing investigative resources to the U.S. Department of Justice’s Antitrust effort to address such matters.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals and a $100 million fine for corporations. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. A count of conspiracy to commit mail fraud carries a maximum penalty of 20 years in prison and a fine of $250,000 for an individual, and a fine of $500,000 for a corporation. The respective maximum fines for the conspiracy to commit mail fraud charge may be increased to twice the gross gain the conspirators derived from the crime or twice the gross loss caused to the victims of the crime by the conspirators.
The investigation is being conducted by Antitrust Division attorneys in Atlanta and the FBI’s Atlanta Division, with the assistance of the Atlanta Field Office of the Housing and Urban Development Office of Inspector General and the U.S. Attorney’s Office for the Northern District of Georgia. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should call 404-331-7113 or visit www.justice.gov/atr/contact/newcase.htm.
Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Georgia Man Sentenced to 235 Months for attempted Sexual Exploitation of a Minor via the InternetRead the Press Release
GAINESVILLE, FLORIDA–Douglas Ray Castleberry, 35, of St. Mary’s, Georgia, was sentenced yesterday in federal court to serve 235 months in prison for using the Internet to attempt to entice a child to engage in sexual activity.
Castleberry was arrested on November 14, 2012, as part of a law enforcement on-line operation conducted in Gainesville, Florida. By means of an Internet website, Castleberry attempted to persuade an 11-year-old child to engage in sexual activity. He then traveled from St. Mary’s to Gainesville with multiple images of child pornography, which he could use to teach the child to commit similar acts. After his arrest in Gainesville, officers examined his cell phone and identified numerous other potential child victims.
Castleberry faced a mandatory minimum sentence of 10 years imprisonment with a maximum of life imprisonment. He was sentenced by U.S. District Judge Mark E. Walker to serve 235 months in prison, followed by a term of life on supervised release. In addition, upon his release, Castleberry will be required to register as a sex offender in accordance with state and federal law.
In announcing the sentence imposed by the court, United States Attorney Pamela C. Marsh said, “The growing threat of sexual exploitation crimes committed against children through the Internet is a deplorable trend. My office is committed to the safety and well-being of every child and has placed a high priority on combating sexual exploitation of minors.” U.S. Attorney Marsh also praised the Alachua County Sheriff’s office for their dedicated work, resulting in Castleberry’s arrest and prosecution. She said, “Without their excellent work, this predator might still be lurking on the Internet, threatening to victimize additional children.”This case was investigated by the Alachua County Sheriff’s Office and was prosecuted by Assistant U.S. Attorney Frank Williams.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who 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.Gambian National Pleads Guilty to Trafficking in Counterfeit MerchandiseRead the Press Release
Gulfport, Miss. – Ousainou Mahanera, 33, a citizen of Gambia who resides in New Orleans, Louisiana, pled guilty to trafficking in counterfeit merchandise, announced U.S. Attorney Gregory K. Davis and Raymond R. Parmer, Jr., Special Agent in Charge of Homeland Security Investigations (“HSI”) in New Orleans.
Mahanera admitted that on March 8, 2013, he trafficked in counterfeit merchandise bearing counterfeit marks from the companies of Gucci, Louis Vuitton, Hermes, Burberry and Fendi. Mahanera sold the counterfeit handbags, shoes, scarves and other items at a flea market in Algiers, Louisiana.
Mahanera will be sentenced by U.S. District Judge Sul Ozerden on January 27, 2014 at 9:30 a.m. He faces a maximum sentence of 10 years in prison and a $2 million fine.
This case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Ruth Morgan..###
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Former Vice President at Harrisburg Area Community College Charged with Wire FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced the filing of an Information in U.S. District Court in Harrisburg today charging Nancy Rockey, age 55, of Harrisburg, Pennsylvania, with wire fraud.
According to United States Attorney Peter J. Smith, Rockey, was employed by Harrisburg Area Community College (HACC) from 1980 until her resignation in February 2012. At the time of her resignation, Rockey was Vice-President of the Harrisburg campus and Vice-President of College and Community Development.
In connection with her position, HACC provided Rockey with a HACC credit card to be used to purchase work-related items such as text books, training materials and other educational items.
Rockey is charged with using the HACC credit card to make online purchases of Target gift cards which she then used to purchase non-work-related items for herself, her family and her friends. It is alleged that Rockey created bogus invoices, later submitted to the HACC Finance Office, to conceal the unauthorized purchases.
Rockey is charged with purchasing $228,000 worth of gift cards with her HACC credit card.
The investigation was conducted by the FBI and the Dauphin County Criminal Investigations Division. The case is being prosecuted by Assistant U.S. Attorney Joseph J. Terz.
The U.S. Attorney’s Office also filed a plea agreement which must be approved by the District Court.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former President of Wyoming Area Education AssociationRead the Press Release
Pleads Guilty To Embezzlement Of Union Funds
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Lisa Barrett, age 48, of Shavertown, Luzerne County, pleaded guilty on October 2, before Senior U.S. District Court Judge James M. Munley, to a felony Information which charged her with embezzlement of funds from a labor organization.
According to United States Attorney Peter J. Smith, Barrett is the past president of the Wyoming Area Education Association (WAEA) and admitted to converting in excess of $30,000 in funds of the labor union to her own use from 2006 to 2012. Barrett resigned as president of WAEA in March 2013.
The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
Senior Judge Munley ordered that a presentence investigation take place. Sentencing has been scheduled for January 8, 2014.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is imprisonment for five years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public, and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Employee of Bon-Ton Stores FoundationRead the Press Release
Pleads Guilty To $1.2 Million Wire Fraud And Tax Evasion
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that on October 15, Christine S. DeJuliis, age 51, of Felton, PA, pleaded guilty before U.S. Magistrate Judge Susan E. Schwab to wire fraud and tax evasion charges. Magistrate Judge Schwab has recommended that the guilty plea be accepted by U.S. District Court Judge Yvette Kane.
According to United States Attorney Peter J. Smith, DeJuliis was hired by the Bon-Ton Stores, Inc., in 1999, and worked in an administrative capacity for the Bon-Ton Stores Foundation, a charitable organization established by the Bon-Ton Stores, Inc. While working in that capacity, DeJuliis created fictitious businesses, opened bank accounts in those entities’ names, and then devised a scheme to forge Foundation checks written to those entities. For at least one of those entities, DeJuliis used an internet-based legal document service to obtain an Employer Identification Number. The Foundation money was put into the fictitious accounts controlled by DeJuliis and then moved into her personal accounts. Between January 2003 and July 2009, DeJuliis defrauded the Foundation of more than $1.2 million. During tax years 2007 and 2008, DeJuliis also failed to pay income tax on the money she stole from the Foundation, resulting in a tax loss of more than $170,000. DeJuliis was fired from the Foundation as soon as her conduct was discovered by the company in July 2009.
The guilty plea was entered pursuant to a plea agreement reached by the parties following DeJuliis’s indictment on mail fraud and money laundering charges in January 2013.
The case was investigated by the U.S. Secret Service and Internal Revenue Service–Criminal Investigation based on information received from the Bon-Ton Stores, Inc.The case is being prosecuted by Assistant United States Attorney James T. Clancy, Chief of the Victim Rights and Asset Recovery Unit.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 20 years’ imprisonment on the wire fraud charge, a term of supervised release following imprisonment, and a fine. The tax evasion charge subjects DeJuliis to a term of imprisonment of up to 5 years and a fine of the greater of $100,000 or twice the tax loss. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Blackfeet Tribal Chairman Sentenced to Prison in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on October 21, 2013, before Chief U.S. District Judge Dana L. Christensen, PATRICK CHARLES THOMAS, a 55-year-old resident of Cut Bank, was sentenced to a term of:
* Prison: 12 months, and 1 day
* Special Assessment: $100
* Restitution: $162,865.36
* Supervised Release: 3 years
THOMAS was sentenced in connection with his guilty plea to unlawful conversion of property he had pledged as security to obtain a series of loans from the Farm Services Agency. An agricultural borrower gives the FSA an interest in their livestock and crops, as well as identified pieces of property and equipment, to insure that the loan is secure and will not be left unpaid. It is illegal to dispose of that property without involving the FSA or providing the FSA with the proceeds of any sale.
THOMAS, a lifelong resident of the Blackfeet Reservation, served on the Blackfeet Tribal Business Council, the governing body of the Blackfeet Tribe, from 2004 to 2008; first in the position of Vice Chairman and then as Chairman.
In an Offer of Proof filed by Assistant U.S. Attorney Carl E. Rostad, the government stated it would have proved at trial the following:
THOMAS was a rancher/farmer near Cut Bank who obtained, over the years, numerous loans from the U.S. Department of Agriculture, Farm Services Agency (FSA). As part of that lending and borrowing relationship, THOMAS pledged as collateral all livestock, crops, and personal property.
Beginning in or before June of 2006, THOMAS began to sell off hay, grass (grazing), cattle, equipment, and other pledged assets without notifying the FSA of the transactions or the income generated from the sale of those assets.
On December 18, 2008, THOMAS submitted a balance sheet to support his application for financing through FSA showing he had 225 bred cows which would be used as collateral. The FSA had concerns regarding the actual number of cows. They had not been able to get an actual count of the cattle for some time and, when chattel inspections had been completed, it did not appear that there were as many cattle as they thought should be there. FSA conducted a count December 29, 2008, and located 169 head. When questioned about the discrepancy and the missing 59 head of cows, THOMAS stated they had gone down into Flat Coulee on his neighbor's place and he couldn't get them up.
On March 2, 2009, THOMAS was approved for a $65,000 annual operating loan from FSA which also rescheduled THOMAS's existing FSA loans. The projections used were based, in material part, on the cow numbers shown on the Security Agreement dated December 19, 2008, which showed 225 head of cows and 11 bulls.
On March 31, 2009, FSA performed an inspection and recorded approximately 180 head of cows. Later that year, in October 2009, without notifying or receiving the approval of the FSA, THOMAS sold 105 calves to a Nebraska-based cattle buyer without disclosing to the buyer that the calves were pledged as security to the FSA. THOMAS concealed the sale from the FSA and converted the proceeds - $49,776 - to his own use and benefit.
On February 22, 2010, FSA went to THOMAS's ranch to do a chattel inspection and cattle count for both the Farm Loan Program and for THOMAS's daughter's 2009 LIP claim. FSA counted 99 cows and 3 yearlings, of which 62 were THOMAS's and 6 of which belonged to his daughter. FSA representatives could not read the brand on the remaining 33 head.
On April 22, 2010, FSA and representatives of the Montana Department of Livestock went to THOMAS's ranch to count the cattle. The final tally that day was 81 head of cows, of which 70 had THOMAS's brand, and 11 had other family member's brands. There were also 53 head of unbranded calves. The numbers were significantly less than what FSA had collateralized - or believed to have collateralized on the basis of THOMAS's representations. These events prompted FSA to turn the case over to the Department of Agriculture's Office of Inspector General for criminal investigation. The subsequent investigation established that between June 11, 2006, and July 13, 2011, THOMAS disposed of and sold at least $162,865.36 in cattle, hay, equipment and other property he had pledged as a collateral to obtain FSA loans, and in which the FSA had a security interest, without the knowledge or approval of the FSA. Agent Monique Hirko-Damuth testified at THOMAS's sentencing hearing that she obtained the defendant's bank records and examined all deposits. On numerous checks the memo section identified the property purchased from THOMAS. She then compared the property sales to the list of pledged assets to determine the amount of secured property that THOMAS had sold without the approval of the FSA and which had not gone to satisfy THOMAS's indebtedness to the agency.
U.S. Attorney Mike Cotter called Judge Christensen's sentence "a sentence that promotes respect for the law. It warns those who endeavor to cheat a federal loan program --- a program that provides producers with financial opportunity and the tools to succeed in Montana's agricultural industry --- that their conduct will not go unnoticed or ignored. The integrity of FSA's lending program will be preserved and protected. Our response will be vigorous and the consequences of deception will be serious."
Cotter included the THOMAS case in the Guardian's Project even though he describes the case as an "external" attack on federal programs when the primary focus of the effort is on "internal" attacks by public officials. "An important component of the THOMAS prosecution was the allegation contained in the first count of the indictment relating to a fraudulent claim in the Keepseagle settlement". In Keepseagle v. Vilsak, a class action lawsuit was pursued by Native American farmers and ranchers alleging that they had been discriminated against by the U.S. Department of Agriculture (USDA) and that they had been denied equal access to credit in the USDA Farm Loan Program. As a result of that lawsuit, on April 28, 2011, a $760 million settlement with the USDA was approved, and claims were entertained from individual Native American producers who asserted that they had been discriminatorily aggrieved by the USDA in the lending process. "This office determined that the Keepseagle claim was best pursued by a civil false claims action against THOMAS and we anticipate bringing that action in the near future."
Because there is no parole in the federal system, the (truth in sentencing( guidelines mandate that THOMAS will likely serve all of the time imposed by the court. In the federal system, THOMAS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
Eric and Ryan Jensen Plead Guilty to All Counts of Introducing Tainted Cantaloupe into Interstate CommerceRead the Press Release
Click here for a copy of the Jensen plea agreement
DENVER -- Eric Jensen, age 37, and Ryan Jensen, age 33, brothers who owned and operated Jensen Farms, located in Granada, Colorado, pled guilty this morning before U.S. Magistrate Judge Michael E. Hegarty to all six counts of the government’s Information which charged them with introduction of adulterated cantaloupe into interstate commerce, United States Attorney John Walsh and Food and Drug Administration – Office of Criminal Investigation Special Agent in Charge Patrick Holland announced. The defendants are scheduled to be sentenced by Magistrate Judge Hegarty on January 28, 2014 at 9:00 a.m. Eric and Ryan Jensen were first charged by Information on September 24, 2013. They made their initial appearance in U.S. District Court in Denver on September 26, 2013.
According to the stipulated facts in the plea agreement, as well as other court documents, Eric and Ryan Jensen were responsible for a farm in Granada, Colorado, where they grew, picked, packaged, sold and shipped cantaloupe. In six separate shipments, the cantaloupe produced by the Jensens bore a poisonous bacteria, Listeria monocytogenes, which rendered it injurious to health.
The court documents further state that the defendants set up and maintained a processing center where cantaloupes were taken from the field and transferred to a conveyor system for cleaning, cooling and packaging. The equipment should have worked in such a way that the cantaloupe would be washed with sufficient anti-bacterial solutions so that the fruit was cleaned of bacteria in the process.
In May of 2011 the Jensen brothers allegedly changed their cantaloupe cleaning system. The new system, built to clean potatoes, was installed, and was to include a catch pan to which a chlorine spray could be included to clean the fruit of bacteria. The chlorine spray, however, was never used. The defendants were aware that their cantaloupes could be contaminated with harmful bacteria if not sufficiently washed. The chlorine spray, if used, would have reduced the risk of microbial contamination of the fruit.
Investigation by the FDA and the Center for Disease Control (CDC) determined that the defendants failed to adequately clean their cantaloupe. They then maintained the fruit in unsanitary conditions . Their actions allegedly resulted in at least six shipments of cantaloupe contaminated with Listeria monocytogenes being sent to 28 different states. The CDC tracked the outbreak-associated illness and determined that people living in 28 states consumed contaminated cantaloupe, resulting in at least 33 deaths and 147 hospitalizations. Further, one woman pregnant at the time of her outbreak-related illness had a miscarriage. Ten additional deaths not specifically attributed to Listeriosis occurred among persons who had been infected by eating outbreak-related cantaloupe.
“The defendants have now admitted that they failed to protect the public from deadly bacteria on their cantaloupe, in violation of the law and critical FDA requirements,” said U.S. Attorney John Walsh. “Their actions resulted in tragedy nationwide, and profound economic consequences for an entire industry, and has exposed them to these serious criminal consequences.”
“According to CDC estimates, roughly 48 million Americans get sick, 128,000 are hospitalized, and 3,000 die of foodborne diseases each year. I applaud the U.S. Attorney’s Office for the District of Colorado for standing up for the 147 known victims in this case,” said Patrick J. Holland, Special Agent in Charge of the FDA—Office of Criminal Investigations. Prosecutions like this heightened awareness among food growers, processors and distributors and demonstrate the critical role they play in the health and safety of every American.”
Both defendants have pled guilty to six counts of adulteration of a food and aiding and abetting. If convicted, each defendant faces not more than one year in federal prison, and a fine of up to $250,000 per count.
This case was investigated by the FDA -- Office of Criminal Investigations, the Center for Disease Control and the State of Colorado Department of Public Health and Environment.
The defendants are being prosecuted by Assistant U.S. Attorney Jaime Pena.
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Eight Individuals Convicted in Federal CourtRead the Press Release
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(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
ELKINS, VIRGINIA – Eight individuals entered plea of guilty before Magistrate Judge John S. Kaull according to United States Attorney William J. Ihlenfeld, II.
LINDSEY PARKER ROY, age 40, MICHAEL WAYNE JOHNSON, age 32, EILEEN MICHAEL DESHAYES, age 28, and NICOLE ROSELLA SPOR, age 36, of Elkins, entered pleas of guilty to “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” ROY, JOHNSON and DESHAYES, who are free on bond, and SPOR, who is in custody, pending sentencing, each face up to twenty years in prison. This case was investigated by the West Virginia State Police, the U.S. Forest Service, the Elkins Police Department and the Randolph County Sheriff’s Department.
DESTRY SETH POLING, age 27, of Parsons, West Virginia, SHANNON DAVID FLAGG, age 40, of Hambleton, West Virginia, and MICHAEL LUTHER WHITE, age 22, of Thomas, West Virginia, entered pleas of guilty to “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” POLING, FLAGG and WHITE, who are free on bond pending sentencing, each face up to twenty years in prison. This case was investigated by the West Virginia State Police, the U.S. Forest Service, and the Tucker County Sheriff’s Department.
CHAD FREDERICK ARBOGAST, age 34, of Belington, West Virginia, entered a plea of guilty to “Distribution of Oxycodone.” ARBOGAST, who is free on bond pending sentencing, faces up to twenty years in prison. This case was investigated by the West Virginia State Police-Bureau of Criminal Investigations, the U.S. Forest Service and the Randolph County Sheriff’s Department.
The above cases were prosecuted by Assistant U.S. Attorney Stephen D. Warner.
Eagle Butte Man Found Guilty of Attempted Aggravated Sexual Abuse and Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that Ronnie Fire Cloud, age 38, of Eagle Butte, South Dakota, was convicted of Attempted Aggravated Sexual Abuse and Abusive Sexual Contact as a result of a federal jury trial in Pierre, South Dakota. Fire Cloud was found not guilty of Aggravated Sexual Abuse by Force.
The conviction carries a maximum penalty of any term of years, up to life, of imprisonment and/or a $250,000 fine and a mandatory minimum term of supervised release of 5 years, up to life. A special assessment of $200 to the Federal Crime Victims Fund will also be ordered.
The conviction stems from an incident occurring on November 2, 2012. Fire Cloud allowed the victim, who was a house guest, to use his shower. While she was showering, Fire Cloud entered the bathroom, fondled her, and attempted to rape her. The victim was able to escape the bathroom, flee the residence and contact the authorities.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency, the National Park Service, and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Troy R. Morley.
A presentence investigation report was ordered, and a sentencing date was set for April 21, 2014.
Fire Cloud was remanded to the custody of the U.S. Marshals Service pending sentencing.