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17 September 2013
Arkansas Man Found Guilty of Crack Cocaine ConspiracyRead the Press Release
A man who conspired to distribute crack cocaine was convicted by a jury September 11, 2013, after a three-day trial in federal court in Sioux City.
Jeffery Thompson, 39, originally from Osceola, Arkansas, but residing in Sioux City, Iowa, was convicted of one count of conspiring to distribute crack cocaine and one count of distributing crack cocaine. The verdict was returned following about three hours of jury deliberations.
The evidence at trial showed Thompson was involved in a conspiracy from about 2008 and continuing through about 2011 that distributed 280 grams or more of crack cocaine. Evidence also showed that on or about June 18, 2010, in Sioux City, Iowa, Thompson distributed crack cocaine to an individual cooperating with law enforcement. Thompson has been previously convicted of four prior felony drug offenses from 2001 to 2013.
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Thompson remains in custody of the United States Marshal pending sentencing. On the conspiracy conviction, Thompson faces a mandatory minimum sentence of life imprisonment and a possible maximum sentence of a $20,000,000 fine, a special assessment of $100. On the distribution conviction, he faces the following maximum penalties, up to 30 years’ imprisonment without the possibility of parole; a fine of not more than $2,000,000; a mandatory special assessment of $100; and a term of supervised release of at six years to life.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-4081.
Appeals Court Upholds Constitutionality of New Jersey Sports Betting BanRead the Press Release
NEWARK, N.J. – The United States Court of Appeals for the Third Circuit issued a precedential opinion today upholding a federal statute that prevents the state of New Jersey from legalizing sports betting in its casinos and racetracks.
The opinion concludes that professional sports leagues have standing to sue to stop the spread of state-sponsored sports gambling – as provided by the 1992 federal Professional and Amateur Sports Protection Act (PASPA) – and that the act itself is constitutional.
The United States of America intervened in the matter to defend the constitutionality of PASPA. New Jersey U.S. Attorney Fishman argued the United States’ position before the District Court and the Third Circuit Court of Appeals.
“We are gratified that the Court of Appeals agreed with the United States’ position that Congress acted constitutionally when it enacted PASPA,” said U.S. Attorney Fishman. “The government’s argument was not whether sports gambling should be legalized or is good policy. The government argued and the Court of Appeals agreed that Congress had the constitutional authority to make uniform national policy and not to leave it to the decisions of individual states.”
On Aug. 7, 2012, the National Collegiate Athletic Association, the National Basketball Association, the National Football League, the National Hockey League and Major League Baseball filed suit against New Jersey’s governor, director of the Division of Gaming Enforcement, and executive director of the Racing Commission after New Jersey amended its constitution. The amendment permitted the legislature to legalize, with limited exceptions, wagering at casinos and racetracks throughout the state on the results of professional, college and amateur sports.
The Sports Leagues’ suit sought to enjoin the implementation of state-sponsored gambling in New Jersey. U.S. District Judge Michael A. Shipp found that the Sports Leagues had standing to bring their action, rejected constitutional challenges to PASPA and entered judgment against New Jersey. Today’s decision by the Third Circuit Court of Appeals affirmed the District Court’s judgment.13-376
Anchorage Felon sentenced to 150 months in prison for gun and drug possession and assaulting a Federal AgentRead the Press Release
Anchorage, Alaska -Acting U.S. Attorney Kevin Feldis announced today that an Anchorage man was sentenced in an Anchorage federal court after pleading guilty to multiple counts of weapons possession, one count of possession of cocaine, and one count of assaulting a federal law enforcement officer.
Lamar Joseph Facine, 30, of Anchorage, Alaska, was sentenced yesterday by Chief U.S. District Court Judge Ralph R. Beistline to 150 months in prison, to be followed by a three year term of supervised release. Facine, already a convicted felon, previously pled guilty to two counts of being a felon in possession of a firearm as well as one count of cocaine possession and one count of assaulting a federal agent.
According to Assistant U.S. Attorney Stephanie Courter, who prosecuted the case, Facine admitted to possessing three separate firearms – two handguns and a shotgun – after having previously been convicted of two counts of felony drug distribution. He also possessed a bag containing powder cocaine, additional rounds of ammunition, and other items of drug paraphernalia. When Facine was confronted by law enforcement in October 2012, he immediately began to fight the officers, ultimately striking one agent in the face.
In announcing the sentence, Judge Beistline noted that Facine was clearly dangerous and had earned the punishment ordered by the court. Judge Beistline also noted that Facine’s actions demonstrated a lack of respect for law enforcement and for those in positions of authority; therefore, it was important to fashion a sentence that focused on deterrence and protection of the public.
Mr. Feldis commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives as well as the United States Probation and Pretrial Services Office for their investigation of this case.
Algona Man Pleads Guilty to Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine pled guilty September 6, 2013, in federal court in Sioux City.
Ryan Hansen, 32, from Algona, Iowa, was convicted of conspiring to distribute methamphetamine.
At the plea hearing, Hansen admitted his involvement from September 2012 through March 2013 in a conspiracy that distributed at least 500 grams of actual (pure) methamphetamine. Hansen admitted to obtaining ounces of methamphetamine in Minnesota on multiple occasions and distributing it in Iowa. On March 16, 2013, law enforcement conducted a traffic stop of the vehicle Hansen was driving. Officers located and seized several bags of “ice” methamphetamine totaling 14.76 grams of actual (pure) methamphetamine. Hansen admitted he had traveled to Minnesota to obtain the methamphetamine, transported it back to Iowa and sold some of the methamphetamine in the Mason City area prior to being stopped by law enforcement.
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Hansen remains in custody of the United States Marshal pending sentencing. Hansen faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, a $100 special assessment, and ten years up to life of supervised release following any imprisonment.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Kossuth County Sheriff’s Office, and the Iowa DCI Criminalistics Laboratory.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-3010.Alabama Man Indicted for Mutli-Year Stolen Identity Refund Fraud ConspiracyRead the Press Release
Montgomery, Alabama - A federal grand jury returned an indictment charging Nakia Jackson with conspiracy to file false tax returns, theft of public funds, and aggravated identity theft, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney for the Middle District of Alabama George L. Beck Jr.
According to the indictment, between January 2009 and March 2011, Jackson conspired with several individuals to file false tax returns using stolen identities. Jackson obtained many of the stolen identities from a state employee. He used those identities to file false tax returns and directed the tax refunds to several bank accounts. Jackson recruited individuals to open up bank accounts to receive the false refunds and directed them to withdrawal the false refund money. To assist in his conspiracy, Jackson recruited a bank teller to facilitate to deposit and withdrawal of the fraudulent tax refunds.
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Jackson faces a maximum potential sentence of 10 years in prison for the charge of conspiracy to defraud the United States and for each of the theft of government money counts, and a mandatory 2-year sentence for the aggravated identity theft counts. He is also subject to forfeiture, fines and mandatory restitution if convicted.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles M. Edgar, Jr. and Michael Boteler of the Justice Department’s Tax Division are prosecuting the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617ADA Consent Decree Entered Between Department of Justice and Local RestaurantRead the Press Release
Kenyen R. Brown, United States Attorney for the Southern District of Alabama, announces the successful investigation and resolution of a complaint made by a person with disabilities who, like many others, could not access a local restaurant. Today, the federal district court entered a Consent Decree between the Department of Justice and the owners and operators of Cotton’s Restaurant in Orange Beach, Alabama.
When retiree Roland Barbier, Sr. of Mississippi was vacationing in Orange Beach, Alabama in 2010, he and his family heard of a place with a reputation for great seafood dining. Because he was a person with disabilities who used an assistive device (a walker), he attempted to enter Cotton’s Restaurant but was prevented from doing so because of the number of steps and stairs involved. There was no ramp, no chair lift, nor any elevator. While his family members could access and enjoy the beautiful views of the Gulf of Mexico from the dining room and the food served there, he could not. As a result, the entire family wishing to dine there was forced to leave and to find another, accessible restaurant. Mr. Barbier was representative of many persons with disabilities who could not access the restaurant.
A notice of complaint (based upon an alleged violation of the Americans with Disabilities Act [ADA]) and initiation of the investigation was issued to Cotton’s Restaurant by the Civil Rights Enforcement Unit of the U. S. Attorney’s Office, led by Assistant United States Attorney Gary Alan Moore. Following investigation, negotiation, and architectural design, the parties were able to agree on required changes that would be made to the facility including: adding accessible parking for persons with disabilities, adding an appropriate ramp to a chair lift which was installed and which would be used for persons who have trouble walking, who use wheelchairs, walkers and the like. Because neither of the restrooms at the restaurant was accessible, the management of Cotton’s remedied that violation by building a new accessible restroom for females and by converting the previous men and women’s restrooms into a single, accessible restroom for males. In addition, some dining tables of a height that will allow those who use a wheelchair have been added and a required number will also have gulf view-locations. Policies have been adopted by the owners and staff which require providing dining assistance to persons who are deaf, hard of hearing, blind and deaf-blind, blind, and people with mobility disabilities who may not be able to access the raised bar in the lounge. Service dog policies have also been adopted. Staff training is also required as part of the Consent Decree’s requirements.
As Mr. Brown continued, “Although there was not an immediate positive response, Cotton’s Restaurant owners quickly chose to do the appropriate thing to remove the barriers which prevented persons with disabilities from enjoying their restaurant. Certainly, nothing says you are welcome to a place of business like a person actually being able to enter and enjoy that place of business. It’s the law and many folks join us in saying it’s also simply great for business. We commend Cotton’s Restaurant’s owners for their decisions and their wise investment. They have shown they are good corporate neighbors. With more than 55 million persons with disabilities in our country, the restaurant has the potential for much more business as well.
“Because Cotton’s Restaurant soon cooperated and agreed to make the substantial changes required, the Department of Justice did not seek civil monetary penalties provided for in the ADA. That is a rare situation. Also, Mr. Barbier was not interested in monetary damages, to which he was entitled. He simply wanted the problem remedied for others who might want the same dining experience as persons who do not have disabilities. When he was shown photographs of the renovations taking place to make the restaurant accessible, Mr. Barbier was very pleased and said that at his age, he may not be able to visit the Gulf area again. Sadly, he passed away a few weeks ago. He was a good neighbor who certainly cared for others.
“I want to be clear on behalf of the United States, however, that if business owners or governmental entities do not cooperate with our compliance efforts on behalf of persons with disabilities, we intend to seek the full measure of relief allowed under the ADA in terms of injunctive relief to effect structural changes to make them accessible and we will seek civil monetary penalties and compensatory damages on behalf of the victims,” concluded Mr. Brown.
“In late July we celebrated the 23rd Anniversary of the enactment of the Americans with Disabilities Act,” observed AUSA Moore. He continued, “Even though many buildings and facilities pre-date the 1990 statute, owners and operators of facilities and businesses and of state and local governmental services still must perform renovations or effect changes which are readily achievable to remove barriers to access to persons with disabilities. For more information, visit www.ada.gov or our office’s website at http://www.justice.gov/usao/als/civil/cre.html”.
The Civil Rights Enforcement Unit team consisted of AUSA Moore, Paralegal Regina Dickerson, Investigator Richard Hinrichs, and Independent Architectural Consultant Bill Hecker of Birmingham, AL.
Any person with a disability who believes they have been discriminated against in the Southern District of Alabama may contact our office at 63 South Royal Street, Suite 600, Mobile, AL 36602, telephone us at 251.441.5845 or file a complaint with the U. S. Department of Justice, 950 Pennsylvania Avenue, NW, Civil Rights Division, Disability Rights Section, Washington, DC 20530.
16 September 2013
“No Show” Doctor Sentenced to 151 Months in Prison in Connection with $77 Million Medicare Fraud SchemeRead the Press Release
Gustave Drivas, M.D., 58, of Staten Island, N.Y., was sentenced to serve 151 months in prison for his role as a “no show” doctor in a $77 million Medicare fraud scheme. The State of New York revoked Dr. Drivas’s medical license earlier this year.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Director in Charge George Venizelos of the FBI’s New York Field Office and Special Agent in Charge Thomas O’Donnell of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
Drivas was convicted by a jury on April 8, 2013, of health care fraud conspiracy and health care fraud after a seven-week trial. He was acquitted of kickback conspiracy. Including Drivas, 13 individuals have been convicted of participating in the massive fraud scheme, either through guilty pleas or trial convictions. In addition to the prison term, U.S. District Judge Nina Gershon of the Eastern District of New York sentenced Drivas to three years of supervised release with a concurrent exclusion from Medicare, Medicaid and all Federal health programs, ordered him to forfeit $511,000 and ordered him to pay restitution in the amount of $50.9 million.
The evidence at trial showed that Drivas knowingly authorized his co-conspirators at a Brooklyn medical clinic to use his Medicare billing number to charge Medicare for more than $20 million in medical procedures and services that were never performed. In return, he received more than $500,000 for his role in the scheme. According to court documents, from 2005 to 2010, Drivas was the medical director of or a rendering physician at a clinic in Brooklyn that billed Medicare under three corporate names: Bay Medical Care PC, SVS Wellcare Medical PLLC and SZS Medical Care PLLC (collectively “Bay Medical clinic”). The evidence established that Drivas was a “no show” doctor, who almost never visited the clinic except to pick up his check. The evidence also showed that the clinic paid cash kickbacks to Medicare beneficiaries and used the beneficiaries’ names to bill Medicare for more than $77 million in services that were medically unnecessary and never provided.
The government’s investigation included the use of a court-ordered audio/video recording device hidden in a room at the clinic in which the conspirators paid cash kickbacks to corrupt Medicare beneficiaries. The conspirators were recorded paying approximately $500,000 in cash kickbacks during a period of approximately six weeks from April to June 2010. This room was marked “PRIVATE” and featured a Soviet-era poster of a woman with a finger to her lips and the words “Don’t Gossip” in Russian. The purpose of the kickbacks was to induce the beneficiaries to receive unnecessary medical services or to stay silent when services not provided to the patients were billed to Medicare.
To generate the large amounts of cash needed to pay the patients, Drivas’s business partners and co-conspirators recruited a network of external money launderers who cashed checks for the clinic. Clinic owners wrote clinic checks payable to various shell companies controlled by the money launderers. These checks did not represent payment for any legitimate service at or for the Bay Medical clinic, but rather were written to launder the clinic’s fraudulently obtained health care proceeds. The money launderers cashed these checks and provided the cash back to the clinic. Clinic employees used the cash to pay illegal cash kickbacks to the Bay Medical clinic’s purported patients.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. The case is being prosecuted by Trial Attorney Sarah M. Hall of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys William C. Campos and Shannon C. Jones of the Eastern District of New York.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Wichita Tax Preparer Sentenced for Filing False Tax ReturnsRead the Press Release
WICHITA, KAN. - A Wichita tax preparer has been sentenced to 36 months on federal probation for filing false tax returns, U.S. Attorney Barry Grissom said today.
Lata L. Tomlinson, 34, Wichita, Kan., was convicted in a jury trial in April on 19 counts of preparing false income tax returns for a total of 17 people during tax years 2007, 2008 and 2009.
During trial, prosecutors presented evidence that Tomlinson had a college degree in accounting and worked for various tax preparation companies before starting her own business in 2006 called Talking Taxes And More.
In tax returns she prepared, she falsely stated deductions for depreciation, home improvements, business repairs, contract labor, legal fees, home repairs, medical expenses, advertising, insurance, car and truck expenses, hay and grain expenses, cell phones and care of dependents.
Grissom commended IRS – Criminal Investigation, Assistant U.S. Attorney Matt Treaster and Assistant U.S. Attorney Jason Hart for their work on the case.U.S. Attorney’s Office Announces Settlement of Claims Against Private Prisoner Transport Company for Violation of Jeanna’s ActRead the Press Release
BISMARCK- U.S. Attorney Timothy Purdon announced the settlement of the United States’ civil claims against private prisoner transport company Extradition Transport of America, L.L.C. (ETA). The United States had sued ETA alleging violations of the Interstate Transportation of Dangerous Criminals Act of 2000 (also known as “Jeanna’s Act”) relating to the October 2011 escape of Joseph M. Megna from ETA’s custody at the Oriska Rest Area along Interstate 94 in North Dakota. This suit was the first ever filed under Jeanna’s Act and sought restitution and civil penalties based on the escape of a prisoner froma private prisoner transport company.
Under the terms of the settlement, ETA has agreed to reimburse state, federal, and local law enforcement authorities approximately $70,000 for expenses relating to the re-capture of Megna. In addition, ETA will pay a $10,000 civil monetary penalty, the maximum penalty allowed for a violation of Jeanna’s Act, to the United States. A Consent to Entry of Judgment signed by ETA owner Billy G. Taylor, and summarizing the terms of the settlement was filed today in United States of America v. Extradition Transport of America, L.L.C., United States District Court, District of North Dakota, Case No. 3:12-CV-0046.
In Bismarck, U.S. Attorney Timothy Purdon said, “This groundbreaking lawsuit should send a clear message to the prisoner transport industry: follow the rules and keep the dangerous prisoners in your custody secure or face severe financial penalties under Jeanna’s Act.” U.S. Attorney Purdon added, “I also want to recognize the efforts of our Civil Division in producing this outstanding result. The dedicated men and women of our Civil Division don’t always get the recognition of our criminal prosecutors, but they too work hard and produce great results for the citizens of North Dakota and the United States.”
On October 4, 2011, ETA’s employees were transporting Megna and six other prisoners through North Dakota in a van. ETA was to transport Megna from Florida to Washington to face a felony charge of child molestation in the first degree. At the time of the escape, Megna was a registered sex offender with prior criminal convictions in Washington. Of those seven prisoners, six, including Megna, were considered “violent prisoners.” ETA’s van stopped at the Oriska Rest Area in Barnes County to allow the prisoners to use the restroom. Megna later told authorities that he used a bobby pin found on the floor of the ETA van to pick the locks on his handcuffs, waist chain and leg irons. In addition to failing to detect that Megna was not properly restrained, the ETA employees left Megna and one other prisoner unattended, with the transport van door unlocked. Megna seized the opportunity to escape from the van and flee into a cornfield north of the interstate.
Approximately 60 law enforcement personnel from 14 state, federal, and local agencies were mobilized and spent 22 hours containing the area and searching for Megna, using aircraft and other specialized equipment. Megna was captured the next day, but only after the Barnes County Sheriff formed a posse of local farmers to harvest the corn in which Megna was hiding, flushing him out. During this “harvest,” armed law enforcement officers were stationed on the farmers’ combines to protect the farmers operating the machinery.
Barnes County Sheriff Randy McClaflin said, “I would like to extend a well-deserved ‘Thank You’ to all law enforcement agencies that participated in capturing Megna. This successful effort shows the great cooperation and dedication of North Dakota law enforcement officers.” Sheriff McClaflin also expressed his appreciation for the help the officers received from the surrounding communities, particularly the local farmers who teamed up to harvest the cornfield in which Megna was hiding. “These folks were instrumental in apprehending Megna without any further delays,” Sheriff McClaflin said.
Law enforcement agencies participating in the operation included Barnes County Sheriff’s Office, Cass County Sheriff’s Office, Jamestown Police Department, Valley City Police Department, West Fargo Police Department, Fargo Police Department, Moorhead Police Department, North Dakota Bureau of Criminal Investigation, North Dakota Game and Fish Department, North Dakota Highway Patrol, U.S. Customs and Border Protection, U.S. Fish & Wildlife Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, and U.S. Marshals Service. Cass County Sheriff Paul D. Laney said, “It’s incidents like this that demonstrate the quality of the relationship between the community itself and their local, state and federal law enforcement officers. We all came together to solve an immediate issue, which was the apprehension of the suspect, and then in the aftermath the prosecution of the escapee and the U.S. Attorney’s Office holding the transport company accountable for the incident. Teamwork like this makes me proud to be a law enforcement officer in North Dakota.”
Jeanna’s Act was enacted in response to the escape of convicted murderer Kyle Bell while being transported between correctional facilities by a private prisoner transport company. Bell had sexually assaulted and murdered 11-year-old Jeanna North in Fargo, N.D., in 1993; he was convicted of murder and sentenced to life in prison. In October 1999 Bell escaped while being transferred by a private prisoner transport company. Bell was re-apprehended in Texas three months later.
U.S. Attorney Hosted Gang Prevention SummitRead the Press Release
BOSTON – On Sept. 16, 2013, the United States Attorney’s Office hosted nearly 500 law enforcement and community professionals from around New England at its Annual Gang Prevention Summit in Marlborough. This year’s summit, sponsored by the Department of Justice’s Project Safe Neighborhoods (PSN) program, focused on coalescing best practices that can be utilized throughout Massachusetts.
The summit began at 9:00 a.m. with opening remarks by U.S. Attorney Carmen M. Ortiz and Middlesex District Attorney Marian T. Ryan. The afternoon session was highlighted with the keynote address by Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police. Col. Alben discussed the challenges facing law enforcement today, citing the Marathon bombing case and the state drug lab scandal.Participants had the opportunity to learn from experts in the public and non-profit sectors about prevention and intervention involving youth in gangs, innovative community policing initiatives, and lessons learned from established prison re-entry programs. The diverse range of participants included local law enforcement, prosecutors, social workers, medical professionals, educators, faith-based partners and residents. The purpose of the summit was to form and strengthen working partnerships among stakeholders as well as to provide relevant training.
“Bringing together a varied group of professionals to work collaboratively to prevent violence in our communities, especially gun and gang violence, is critically important,” said U.S. Attorney Ortiz. “By continually educating ourselves and implementing proven, innovative approaches tailored to meet the challenges of individual communities, we will achieve greater progress in safeguarding security for all.”
The Project Safe Neighborhoods initiative was launched in 2001 by the Department of Justice to reduce gun and gang crime in America. Spearheaded by U.S. Attorneys’ Offices, PSN operates as a comprehensive, coordinated and community-based approach that promotes prevention and deterrence efforts. The five foundation principles of PSN are to create working partnerships, plan strategically, provide up-to-date training, further community outreach, and to be accountable for outcomes.
U.S. Attorney Continues Focus on Education Funds FraudRead the Press Release
PITTSBURGH - Following the beginning of a new school year, U.S. Attorney David J. Hickton today focused public attention on the office’s School Corruption Hotline, 412-894-7515. The hotline number rings directly in the U.S. Attorney’s Office where callers may leave their name, contact information, and details regarding suspected misuse of tax dollars supporting education.
“The advent of a new school year provides the opportunity to remind citizens that they are a vital resource in helping us identify fraud and illegal activity within the school system,” said U.S. Attorney Hickton. “We need the public to continue to provide information regarding suspected abuses, including misuse of district education funds, theft, spending irregularities, corruption in the contract and bidding process, and bribery, kickbacks or other forms of collusion with outside vendors.”
U.S. Attorney Hickton encouraged callers to be as specific as possible when leaving information so that the appropriate investigating agency, Federal Bureau of Investigation, IRS - Criminal Investigation, Department of Education - Office or Inspector General, or others, are able to pursue leads.
U.S. Attorney Hickton activated the first-of-its-kind hotline in November 2011. Dozens of callers have provided information resulting in several open and ongoing investigations.
The Western District of Pennsylvania encompasses 25 counties in the westernmost part of the Commonwealth: Allegheny. Armstrong, Beaver, Butle, Clarion, Fayette, Greene, Indiana, Jefferson, Lawrence, Mercer, Washington, and Westmoreland in the Greater Pittsburgh area; Crawford, Elk, Erie, Forest, McKean, Venango and Warren in the Erie area; and Bedford, Blair, Cambria, Clearfield and Somerset in the Johnstown area.
Two USA Dry Van Trucking Company Ex-Executives Convicted in $26 Million Fraud SchemeRead the Press Release
HOUSTON – Aurelio “Jim” Aleman, 59, and Oscar Barbosa, 50, have been convicted of conspiracy to commit wire fraud, announced United States Attorney Kenneth Magidson. Aleman was the former chief operations officer of USA Dry Van Logistics (USADV), a cross-border trucking company that services the maquiladora industry. Barbosa was the former controller of the company.
According to records, Aleman and Sergio Lagos - the former chief executive officer of USADV - entered into a financing agreement with GE Capital Corporation (GECC) under which GECC would issue a revolving line of credit which was secured by USADV’s accounts receivables. By January 2010, the maximum borrowing limit under the agreement was increased to $38 million. Pursuant to the agreement, USADV allegedly justified advances on the line of credit by submitting “borrowing base certificates” to GECC.
Aleman and Barbosa admitted that from March 2008 through the end of January 2010, they joined in a scheme to defraud and swindle GECC, a lending company that provided capital to USADV, fraudulently obtaining funds through a revolving line of credit. At the plea hearing, Aleman and Barbosa admitted they schemed to conceal from GECC the truth about USADV’s declining operating performance and financial results. Rather than reveal USADV’s true condition, Aleman and Barbosa misrepresented USADV’s true operating performance and financial results to include the nature of the USADV’s accounts receivable, against which GECC was permitting USADV to borrow hundreds of thousands of dollars on a weekly basis. This caused USADV to appear to be operating more profitably that it actually was. Aleman and Barbosa signed, prepared and/or directed others to prepare certificates that falsely inflated the amount of the company’s accounts receivables and caused them to be submitted to GECC to enable USADV to obtain more funds than would otherwise have been permitted. Aleman and Barbosa perpetuated and concealed the scheme to defraud GECC by directing other employees to manually invoice millions of dollars of fraudulent receivables to inflate the borrowing base and to create false and forged invoices and support documentation for accounts receivables that did not exist. Aleman and Barbosa also admitted to submitting false financial statements to auditors and GECC.
When the truth about USADV’s operations and finances were revealed, USADV went into bankruptcy. USADV successfully re-organized under Chapter 11 bankruptcy proceedings and is currently operating with new owners. Lagos, Aleman and Barbosa are no longer affiliated with or employed by the company. The amount of actual loss to GECC was more than $26 million.
As a condition of the their plea agreements, both Aleman and Barbosa agreed to make monthly payments towards restitution to GECC prior to sentencing. In Aleman’s plea agreement, he further agreed to the imposition of a money judgment against him in the amount of $26,254,781 which was ordered to be forfeited to the United States.
U.S. District Judge Kenneth M. Hoyt, who accepted the guilty pleas today, set sentencing for Aleman and Barbosa on Dec. 9, 2013, at which time they face up 20 years in prison and up to a $250,000 fine.
The charges against Lagos remain pending. He is presumed innocent unless and until convicted through due process of law.
The investigation was conducted by Homeland Security Investigations and the FBI. Assistant United States Attorneys Casey N. MacDonald and Grady J. Leupold are prosecuting the case.
Three Alleged Ms-13 Members Charged in Murder ConspiracyRead the Press Release
Greenbelt, Maryland – A federal grand jury indicted three defendants today in connection with a conspiracy to participate in murder in aid of a racketeering enterprise known as the La Mara Salvatrucha, or MS-13:Jorge Enrique Moreno-Aguilar, aka “Flaco,” and “Castigato,”, age 20, of District Heights, Maryland, Juan Alberto Ortiz-Orellana, aka “Chele” and “Furia,” age 25, of District Heights, Maryland, and
Melvin Marquez-Sanchez, aka “Demente,” age 20, formerly of New York.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Mark A. Magaw of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; and Montgomery County State’s Attorney John McCarthy.
“Today’s indictment is a significant disruption to the illegal operations of MS-13 in Maryland,” said HSI Special Agent in Charge William Winter. “The members of MS-13 spread violence and fear wherever they exist and prey on innocent people, displaying a shocking disregard for human life. HSI will continue to aggressively work with our local, state and federal law enforcement partners in the state of Maryland to target violent transnational gang members who threaten the safety of our communities.”
“Gang investigators from the Prince George’s County Police Department, Montgomery County Police Department, and the Homeland Security Investigations Gang Unit collaborated to develop the identification of these suspects, which led to their arrest and indictment,” stated Prince George’s County Police Chief Mark Magaw. “Today’s indictment is the result of the highly effective partnership that exists among the gang investigators who continue their relentless attack on gang activity in our region.”
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland.
The four count indictment alleges that the defendants were members and associates of MS-13. Between January and March 2013 the defendants targeted an individual believed to be affiliated with the rival 18th Street gang. According to the indictment, the defendants obtained photos of the victim, and planned the murder of the victim. Moreno-Aguilar and Ortiz-Orellana possessed a gun to be used for the murder. On March 12, 2013, Moreno-Aguilar and Ortiz-Orellana went to Capital Heights, Maryland, found and shot the victim multiple times, killing him. They fled and disposed of the gun.
All three defendants face a maximum sentence of 10 years in prison for conspiring to commit murder in aid of racketeering. Moreno-Aguilar and Ortiz-Orellana also face a maximum sentence of life in prison for murder in aid of racketeering; murder resulting in the use of a gun; and using a firearm during a crime of violence.
Moreno-Aguilar and Ortiz-Orellana are currently in state custody on related state charges. Marquez-Sanchez is currently in custody of immigration authorities. The defendants are expected to have their initial appearances in federal court in Greenbelt on these federal charges within the next couple weeks.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Prince George’s County and Montgomery County Police Departments and Prince George’s and Montgomery Counties State’s Attorney=s Offices for their work in the investigation and proceedings. Mr. Rosenstein thanked Assistant United States Attorney William D. Moomau and Kevin Rosenberg, a Trial Attorney with the Justice Department’s Organized Crime and Gang Section, who are prosecuting this Organized Crime and Drug Enforcement Task Force case.
Staten Island Doctor Sentenced to 151 Months in Prison in Connection with $77 Million Medicare Fraud SchemeRead the Press Release
BROOKLYN, NY – Earlier today, Gustave Drivas, M.D., 58, of Staten Island, New York, was sentenced to 151 months in prison for his role as a “no-show” doctor in a $77 million Medicare fraud scheme. In addition to the prison term, U.S. District Judge Nina Gershon of the Eastern District of New York sentenced Drivas to three years of supervised release with a concurrent exclusion from employment with any federally funded medical treatment program, ordered him to forfeit $511,000, and ordered him to pay restitution in the amount of $50,943,386. The State of New York revoked Dr. Drivas’s medical license earlier this year.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Special Agent-in-Charge Thomas O’Donnell of the HHS Office of Inspector General (HHS-OIG).
Drivas was convicted by a jury of health care fraud conspiracy and health care fraud on April 8, 2013, after a seven-week trial. Including Drivas, 13 individuals have been convicted of the massive fraud scheme, either through guilty plea or trial conviction.
“Abandoning the mandate to ‘do no harm,’ Dr. Drivas was instead up to no good. Drivas put personal greed before patient care, and was willing to sell his Medicare billing number for cash in his pocket,” stated United States Attorney Lynch. “This Office and the Department of Justice will aggressively investigate and prosecute health care fraud. Corrupt doctors like Dr. Drivas are not above the law and will be held accountable for their crimes.”
According to court documents and the evidence at trial, from 2005 to 2010, Drivas was the medical director or a rendering physician of a clinic in Bath Beach, Brooklyn, that billed Medicare under three corporate names: Bay Medical Care PC, SVS Wellcare Medical PLLC, and SZS Medical Care PLLC (Bay Medical clinic). Drivas knowingly authorized his co-conspirators at the clinic to use his Medicare billing number to fraudulently charge Medicare more than $20 million for medical procedures and services that were never performed. In return, he received more than $500,000 for his role in the scheme. The evidence proved that Drivas was a “no show” doctor, who almost never visited the clinic except to pick up his check. The evidence also showed that the clinic paid cash kickbacks to Medicare beneficiaries and used the beneficiaries’ names to bill Medicare for more than $77 million in services that were medically unnecessary and never provided.
The government’s investigation included the use of a court-ordered audio/video recording device hidden in a room at the clinic, in which the conspirators paid cash kickbacks to corrupt Medicare beneficiaries. The conspirators were recorded paying approximately $500,000 in cash kickbacks during a period of approximately six weeks from April to June 2010. This room was marked “PRIVATE” and featured a Soviet-era poster of a woman with a finger to her lips and the words “Don’t Gossip” in Russian. The purpose of the kickbacks was to induce the beneficiaries to receive unnecessary medical services or to stay silent when services not provided to the patients were billed to Medicare.
To generate the large amounts of cash needed to pay the patients, Drivas’s business partners and co-conspirators recruited a network of external money launderers who cashed checks for the clinic. Clinic owners wrote clinic checks payable to various shell companies controlled by the money launderers. These checks did not represent payment for any legitimate service at or for the Bay Medical clinic, but rather were written to launder the clinic’s fraudulently obtained health care proceeds. The money launderers cashed these checks and provided the cash back to the clinic. Clinic employees used the cash to pay illegal cash kickbacks to the Bay Medical clinic’s purported patients.
This case is being prosecuted by Trial Attorney Sarah M. Hall of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys William P. Campos and Shannon C. Jones of the Eastern District of New York. The case was investigated by the FBI and HHS.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
The Defendant:
GUSTAVE DRIVAS, M.D.
Staten Island, New York
Age: 58Schoolteacher Arrested on Child Pornography Distribution ChargesRead the Press Release
LAREDO, Texas – Over the weekend, federal and local law enforcement authorities arrested Jorge Valadez, 53, for receiving and distributing videos depicting children engaging in sexually explicit conduct, announced United State Attorney Kenneth Magidson.
The criminal complaint, filed today, charges Valadez - a high school teacher in Laredo - with receipt and distribution of child pornography via the Internet.
Valadez made his initial appearance this morning before U.S. Magistrate Judge Guillermo R. Garcia who ordered Valadez be detained without bond pending further criminal proceedings. He is set for a detention hearing on Sept. 19 at 10:00 a.m.
The complaint alleges that an investigator discovered someone sharing several videos constituting child pornography via the Internet. The investigation allegedly led to the home of Valadez in Laredo. According to the complaint, federal agents then obtained and executed a search warrant on Friday evening, at which time, he was taken into custody.
Valadez allegedly used a peer-to-peer network to share images and videos of child pornography.
If convicted, Valadez faces a minimum of five and up to 40 years in federal prison as well as a maximum fine of $250,000.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case is being investigated by Homeland Security Investigations with the assistance of the Webb County Sheriff’s Department. Assistant United States Attorney Homero Ramirez is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
The defendant is presumed innocent unless and until convicted through due process of law.SIRF ChargesRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced the filing of criminal charges against five (5) individuals accused of committing tax fraud, identity theft, and related crimes in the Baton Rouge area. Collectively, these five individuals are alleged to have submitted more than 1,000 fraudulent federal income tax returns, fraudulently claiming refunds totaling more than $1.4 million. The charges are the result of an initiative by the United States Attorney’s Office, the Internal Revenue Service’s Criminal Investigations Division, and the United States Department of Justice’s Tax Division, to combat stolen identity refund fraud and other tax fraud schemes.
The following individuals have been charged:
HOLLY GREEN, age 28, of Baton Rouge, Louisiana, was charged in a bill of information with making false claims and identity theft. The bill of information alleges that GREEN obtained the names and personal identifying information, including Social Security numbers, of numerous victims, and used that information to electronically file fraudulent federal tax returns in the victims’ names. GREEN directed the fraudulent refunds to be deposited onto debit cards that she controlled, or mailed to her, at which point she would cash the checks and gain control of the funds. From January 2012 through April 2012, GREEN submitted approximately 71 false tax returns, claiming refunds totaling approximately $123,155. If convicted of both counts, GREEN faces a maximum possible prison term of ten (10) years and fines totaling $500,000. GREEN also faces the forfeiture of the proceeds from the alleged scheme. The case is being prosecuted by Assistant United States Attorney Shubhra Shivpuri.
MONA HILL, age 32, of Plaquemine, was charged in a bill of information with wire fraud and aggravated identity theft. The bill of information alleges that HILL obtained the names and personal identifying information of numerous victims, and used that information to file fraudulent federal tax returns in the victims’ names. From January 2012 through July 2012, HILL submitted approximately 488 false tax returns, claiming refunds totaling approximately $661,258. If convicted, HILL faces up to twenty (20) years in prison on the wire fraud count, which would be followed by a mandatory, 2-year prison term as a result of the aggravated identity theft count. HILL also faces fines totaling $500,000 and forfeiture of the proceeds from the alleged scheme. The case is being prosecuted by Assistant United States Attorney Shubhra Shivpuri.
ASHLEY D. RICKS-STAMPLEY (RICKS), age 28, of Baton Rouge, was charged in a bill of information with wire fraud and aggravated identity theft. The bill of information alleges that RICKS obtained the names and personal identifying information of numerous victims and then used the information to submit false income tax returns in the victims’ names for the 2010 and 2011 tax years. According to the bill of information, RICKS submitted approximately 455 false tax returns and fraudulently obtained approximately $559,953 through her scheme. If convicted, RICKS faces up to twenty (20) years in prison on the wire fraud count, which would be followed by a mandatory, 2-year prison term as a result of the aggravated identity theft count. RICKS also faces fines totaling $500,000 and forfeiture of the proceeds from the alleged scheme. The case is being prosecuted by Assistant United States Attorney Reginald Jones.
KIMBERLY H. SCOTT, age 40, of Baton Rouge, was charged in a bill of information with theft of public funds. The bill of information alleges that SCOTT worked with another individual who had obtained the names and personal identifying information of numerous victims and used those stolen identities to file fraudulent tax returns. According to the bill of information, SCOTT allowed this other individual to use SCOTT’s bank account to receive the tax refunds that the fraudulent returns would generate. According to the charge, SCOTT allowed the fraudulent proceeds from approximately 74 false tax returns to be deposited into her bank account, totaling approximately $96,497, at which point SCOTT gained control of the funds. If convicted, SCOTT faces up to ten (10) years in prison and a $250,000 fine. SCOTT also faces the forfeiture of the proceeds from the alleged scheme. The case is being prosecuted by Assistant United States Attorney Reginald Jones.
On September 11, 2013, a federal grand jury returned an indictment charging SHYWANDA F. UNDERWOOD, age 39, of Baker, with four counts of making false claims for tax refunds and four counts of identity theft. The indictment alleges that while UNDERWOOD owned and operated a tax preparation business in Baker, she used W-2 forms for fictitious businesses to prepare and submit false tax returns, claiming tax credits and refunds to which the taxpayers were not entitled. The indictment also alleges that UNDERWOOD prepared and filed false tax returns using stolen identities, including individuals’ Social Security numbers. The indictment alleges that UNDERWOOD claimed fraudulent tax refunds totaling approximately $20,241. If convicted of all 8 counts in the indictment, UNDERWOOD faces a maximum possible prison term of forty (40) years and fines totaling $2,000,000. UNDERWOOD also faces the forfeiture of the proceeds from the alleged scheme. In addition to IRS Criminal Investigation, the case is being investigated by the United States Secret Service. The case is being prosecuted by Assistant United States Attorney Cam T. Le.
“Investigating refund fraud and identity theft is a priority for IRS Criminal Investigation,” said IRS Criminal Investigation Special Agent-in-Charge Gabriel Grchan. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. The recent charges in Baton Rouge should serve as a strong warning to those who are considering similar conduct. The IRS and the U.S. Attorney’s Office are serious about investigating these crimes and prosecuting those who engage in this type of conduct.”
Acting U.S. Attorney Green stated: “This office will continue to aggressively pursue criminals who commit identity theft and use those stolen identities to defraud the United States and line their own pockets. The filing of these five new cases is another important step in that important effort. Working with our federal, state, and local partners, our investigations of this type of crime in our district will continue.”
Presidential Tax Service Owner Ordered to Prison for Falsifying ReturnsRead the Press Release
HOUSTON – Sharon Edwards Kitine, the former owner of a now defunct Presidential Tax Service in Houston, has been sentenced to federal prison for falsifying client returns, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI). Kitine pleaded guilty April 29, 2012, and the tax service establishment she owned closed in March 2012 following her arrest.
Today, U.S. District Judge Vanessa Gilmore, who accepted the guilty plea, handed Kitine a sentence of 24 months in prison to be immediately followed by one year of supervised release.
The factual basis in support of the plea stated that Kitine claimed false deductions for Houston-area clients that fraudulently increased tax refunds by approximately $205,682 for tax years 2006 through 2011, and she was further ordered to pay that amount in restitution to the IRS.
Kitine was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. However, the government stated its intention to seek Kitine’s immediate custody if she fails to truthfully file her own 2012 tax return by the due date of Oct. 15, 2013. At the hearing today, Kitine sought probation in order to immediately begin to repay the National Treasury for the harm she has caused. The United States responded by advising the court that, despite having served as a paid preparer for others for several years, the IRS had no record that Kitine had ever field a personal tax return prior to being charged in this case. Further, after permitted release on bond in March 2012, Kitine had a filed a 2011 personal income tax return as required by her conditions of release but failed to pay any of the taxes shown due with that return.
Court records indicated that on or about March 29, 2008, Kitine knowingly prepared and caused to be filed with the IRS a false 2007 U.S. Individual Income Tax Return – Form 1040 for taxpayers and fee-paying clients in need of tax return preparation services. Without consent of the taxpayers, Kitine included certain materially false deductions with the intention of generating an excessive federal income tax refund and causing a direct pecuniary harm of several thousand dollars to the IRS.
Specifically, Kitine knowingly and willfully included materially false deductions for a variety of Schedule C deductions as well as Schedule A deductions for home mortgage interest and real estate taxes even though the taxpayers rented their home. This tax return alone caused a loss to the U.S. Treasury in the approximate amount of $11,261.
Kitine also knowingly and willfully prepared and caused to be filed with the IRS another 28 false federal income tax returns for other clients for tax years 2006 through 2011 that generated excessive refunds based upon false and fraudulently inflated deductions and credits that caused another $194,421 in aggregate losses to the IRS.
The investigation leading to these charges was conducted by IRS-CI. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.
Pennsylvania Pill Dealer Pleads Guilty to Federal Oxycodone Possession ChargeRead the Press Release
MDENT agents found prescription pain pills, firearms and cash at ‘stash houses’ during investigation
CHARLESTON, W.Va. – A 31-year-old Allentown, PA, man pleaded guilty to his role in an illegal oxycodone distribution scheme in Charleston, announced U.S. Attorney Booth Goodwin. Walter Parris, also known as “Panna,” pleaded guilty today to aiding and abetting the possession with intent to distribute a quantity of oxycodone and alprazolam, also known as “Xanax.”
On April 29, 2012, members of the Metropolitan Drug Enforcement Network Team (MDENT) executed a search warrant on 723 Garvin Street located in Charleston, based on officers’ probable cause that prescription pills were being sold out of the residence. During the execution of the search warrant, agents spotted Parris and several of his associates at 721 ½ Garvin Street, a nearby residence. Parris was taken into police custody based on an outstanding warrant for his arrest. Police later conducted a search of the residence and found a set of luggage that belonged to Parris. A search of the luggage revealed a loaded .25 caliber pistol with a chambered round and numerous paper documents bearing Parris’ name.
Using several investigative leads, agents determined that Parris and his associate used the 723 Garvin Street residence to distribute their pills but maintained a “stash house” to store their prescription pain pills at 818 West Avenue in Charleston. MDENT agents also discovered that a door key, found in Parris’ associate’s pocket at the time of his arrest, matched the bottom and top lock for the 818 West Avenue residence. A search warrant was executed on that residence. Police found a .45 caliber pistol, $3,740 cash, 520 Xanax pills, 93 oxycodone pills, marijuana and paper documents linked to Parris.
Parris faces up to 20 years in prison and a $1 million fine when he is sentenced on December 18, 2013 by United States District Judge John T. Copenhaver, Jr.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
This case was also brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
The investigation was conducted by MDENT. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution.
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Pennsylvania Man Sentenced to 18 Years for Production of Child Pornography, Traveling to Engage in Sexual Acts with MinorsRead the Press Release
BOSTON - A York, Pa. man was sentenced late Friday for production of child pornography and traveling to engage in sex acts with a minor.
Derick Ritter, 42, was sentenced by U.S. District Judge F. Dennis Saylor, IV to 18 years in prison, to be followed by 15 years of supervised release. Ritter pleaded guilty to the charges on April 12, 2013.Pretending to be a teenage boy, Ritter lured a 15-year-old girl into an online relationship. He then enticed her to engage in sexually explicit conduct via web camera. Ritter recorded videos of the victim and saved them to his computer and persuaded her victim to create sexually explicit videos and send them to him. After “dating” the victim online for several months, Ritter traveled to Massachusetts to meet her in person. He took her to a motel and, despite her protests, engaged in sexual acts with her.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Division made the announcement. The case was prosecuted by Assistant U.S. Attorney Karin M. Bell of Ortiz’s Worcester Branch Office.
Parmelee Man Found Guilty of Five Counts of Child Related Sexual Abuse and Sexual Contact ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that Randy Never Misses A Shot, age 49, of Parmelee, South Dakota, was convicted following a three-day jury trial of two counts of Aggravated Sexual Abuse of a Child, two counts of Abusive Sexual Contact of a Child, and one count of Abusive Sexual Contact of a Child While Required to Register as a Sex Offender in Pierre, South Dakota.
These charges carry a maximum penalty of life in prison and a $250,000 fine.
Never Misses A Shot was indicted by a federal grand jury on January 16, 2013. A Superseding Indictment was filed on March 13, 2013. These convictions stem from several separate incidents which occurred between January of 1993 and May of 2007, in which Never Misses A Shot sexually abused three child victims under the age of 12.
During the years of 1993 through 1997, Never Misses A Shot visited child victim A, a young relative, who was staying on the Rosebud Indian Reservation. While visiting her, Never Misses A Shot would sexually abuse her. In addition, Never Misses A Shot engaged in sexual acts with child victim A in a wooded area near the He-Dog housing community. As a result of this conduct, Never Misses A Shot was convicted of Aggravated Sexual Abuse of a child and Abusive Sexual Contact of a Child.
In the summer of the year 2000, Never Misses A Shot was staying with relatives at a housing complex near Parmelee. While there, Never Misses A Shot sexually abused child victim B, another younger relative. As a result of this conduct, Never Misses A Shot was Convicted of Abusive Sexual Contact of a Child.
The final incident occurred over Mother’s Day weekend of 2007. Never Misses a Shot was traveling from Rosebud to Nebraska with a woman and her young daughter, child victim C. They stopped at Pine Ridge for the weekend, and while there, Never Misses A Shot grabbed child victim C behind a trailer, forced her to the ground, and abused her in a sexual manner. As a result of this conduct, Never Misses A Shot was convicted of Abusive Sexual Contact of a Child and Abusive Sexual Contact of a Child While Required to Register as a Sex Offender.
This case was investigated by the Federal Bureau of Investigation, Rapid City Police Department, Sioux Falls Police Department, Rosebud Sioux Tribal Law Enforcement, Brookings Police Department, Jefferson County Sheriff’s Office in Washington State, and the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorney Troy R. Morley.
Never Misses A Shot was remanded to the custody of the U.S. Marshals Service pending sentencing.
Omaha Woman Pleads Guilty to Prostitution and Money Laundering ConspiracyRead the Press Release
United States Attorney Deborah R. Gilg announced that Tammy L. Schuck pled guilty today to three counts of a Superseding Indictment: conspiracy to promote a prostitution enterprise and to induce interstate travel to engage in prostitution; inducing or attempting to induce interstate travel to engage in prostitution; and a conspiracy to launder money. She also admitted a forfeiture allegation.
The counts to which Ms. Schuck pled guilty carry the following penalties: a maximum of 5 years imprisonment and $250,000 fine for the conspiracy to promote a prostitution enterprise and to induce interstate travel for prostitution; a maximum of 20 years imprisonment and $250,000 fine for inducing interstate travel to engage in prostitution; and a maximum of 20 years imprisonment and $500,000 fine for conspiracy to launder money.
Starting in approximately April 2008, and continuing to in or about January 2012, Ms. Schuck operated three “spas” in Omaha, Nebraska. Each of the spas was, in fact, a front for prostitution. The majority of customers received sex acts from workers, rather than legitimate spa services, in exchange for money. Ms. Schuck and other workers had “sessions” with customers during which they provided sex acts in exchange for money. Some customers traveled to the spas from Iowa and from other states to obtain sex acts for money. Customers paid a “door fee” depending on the length of the session and negotiated a separate “tip” with the workers for the sex act.
Ms. Schuck and others acting at her direction deposited cash generated by the operation of the spas into Defendant’s business and personal bank accounts. Ms. Schuck also arranged for credit card revenues from operation of the spas to be deposited into both accounts.
Ms. Schuck placed advertisements for the spas on the internet. Ms. Schuck also helped create a website for the spas accessible over the internet, and periodically updated the website. Established customers could access a “Members Only” section of the website to read about the female workers providing services and view provocative pictures of them.
During the time when Ms. Schuck owned and managed the spas, there were an overall total of more than twenty workers providing commercial sex acts. The investigation was conducted by the Federal Bureau of Investigation, the Omaha Police Department and the Internal Revenue Service, under the auspices of the Child Exploitation Task Force, which also includes the Council Bluffs Police Department, the Douglas County Sheriff’s Office, the La Vista Police Department, the Mills County Sheriff’s Office and the Nebraska State Patrol.Ohio Man Convicted of Online Solicitation of A ChildRead the Press Release
CORPUS CHRISTI, Texas – Harley Michael Peterson, 23, has admitted he used a telephone and a computer connected to the Internet to coerce and entice a minor to engage in sexual activity, announced United States Attorney Kenneth Magidson.
Between April 1, and Aug. 4, 2012, Peterson admitted be began communicating with a child he knew to be 15 years of age. He met the child online and their contact primarily occurred on a social networking website and an online computer gaming community website. The communications eventually progressed to telephone calls.
Peterson and the child chatted explicitly about his desire to engage in sexual activities with the child who clearly identified herself as a 15-year-old. As the communications continued, Peterson agreed to travel from his home in Ohio to Corpus Christi to engage in sexual activity with the child.
On Aug. 3, 2012, the child was reported as a runaway by relatives. Through examination of her online activities, relatives were able to determine her whereabouts and those of Peterson, who was subsequently arrested in Corpus Christi.
Senior U.S. District Judge John D. Rainey accepted the guilty plea and has set sentencing on Dec. 16, 2013, at 4:45 p.m. At that time, Peterson faces a mandatory minimum sentence of 10 years and a possibility of life imprisonment as well as a $250,000 fine. He will remain in custody pending that hearing.
Homeland Security Investigations and Corpus Christi Police Department’s Internet Crimes Against Children Task Force ICAC investigated.
Assistant United States Attorney Lance Duke is prosecuting the case, which 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."
Missouri Tax Preparer Pleads Guilty to Federal Tax Fraud ChargesRead the Press Release
KANSAS CITY, KAN. - A Missouri tax preparer has pleaded guilty to preparing false income tax returns resulting in a total tax loss of more than $316,000, U.S. Attorney Barry Grissom said today.
Cynthia M. Raymond, Jackson, Mo., pleaded guilty to five counts of filing false tax returns and one count of aggravated identity theft. In her plea, she admitted submitting approximately 98 false tax returns under the names of 36 clients for the tax years 2007 through 2010. Her clients were not aware that she prepared returns including false deductions for business losses, charitable contributions, unreimbursed business expenses, medical expenses and false tax credits including education and residential energy credits.
She filed the returns electronically and provided her clients with different tax returns than she filed with the IRS. She routinely directed the Internal Revenue Service to deposit part of the refund to her clients’ accounts and to deposit the rest of the refund into her personal account.
Sentencing is set for Dec. 17. She faces a maximum penalty of 3 years in federal prison and a fine up to $100,000 on each count of filing a false tax return, and a maximum penalty of five years and fine up to $250,000 on the identity theft count. Grissom commended IRS-Criminal Investigation and Assistant U.S. Attorney Chris Oakley for their work on the case.Mescalero Apache Man Sentenced to Prison for Sexually Abusing a MinorRead the Press Release
ALBUQUERQUE – Gregory Warren Second, 22, a member of the Mescalero Apache Nation who resides in Mescalero, N.M., was sentenced this afternoon to 24 months in federal prison followed by five years of supervised release for his conviction for sexual abuse of a minor. Second will be required to register as a sex offender when he completes his prison sentence. The sentence was announced by Acting U.S. Steven C. Yarbrough and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.
Second was arrested in Nov. 2012, on a criminal complaint alleging that in May 2012, he engaged in a sexual act with an Indian child between the ages of 12 and 16 years on the Mescalero Indian Reservation. He has been in custody since his arrest.
On March 26, 2013, Second entered a guilty plea to a felony information charging him with sexual abuse of a minor and admitted that on May 22, 2012, he knowingly engaged in a sexual act with a 12-year-old child.
This case was investigated by the BIA’s Office of Justice Services, Mescalero Agency. It was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, local and tribal 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.justice.gov/psc/.
Mentmore, N.M., Woman Pleads Guilty to Federal Voluntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Bertha Damon, 44, an enrolled member of the Navajo Nation who resides in Mentmore, N.M., pleaded guilty this morning to a voluntary manslaughter charge this morning. Damon entered her guilty plea without the benefit of a plea agreement.
Damon entered her guilty plea to a felony information charging her with killing a man by striking him with a piece of firewood on the Navajo Indian Reservation on May 21, 2011. According to information presented during today’s plea hearing, Damon and the victim, her husband of 24 years, returned to their home after a night of drinking and began arguing. During the argument, Damon repeatedly struck the victim in the head with a piece of firewood. The victim died as the result of multiple blunt force trauma to the head.
At sentencing, which has yet to be scheduled, Damon faces a maximum penalty of 15 years in prison followed by three years of supervised release.
This case was investigated by the Gallup office of the FBI, the Crownpoint office of the Navajo Nation Division of Public Safety and the New Mexico State Police. Assistant U.S. Attorney Jacob A. Wishard is prosecuting the case.
Man Pleads Guilty to Possessing and Making ExplosivesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man pleaded guilty today to unlawfully possessing and making explosives at his home in Las Vegas, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Steven Fernandes, 19, pleaded guilty before U.S. District Judge Andrew P. Gordon to one count of possession of an unregistered firearm. Sentencing is scheduled for Dec. 18, 2013, at 9:00 a.m. Fernandes, who is in federal custody on the charges, faces up to 10 years in prison and a fine of up to $250,000.
According to the plea agreement, before and up to Sept. 13, 2012, Fernandes possessed at his home explosive parts and devices which were not registered with the National Firearms Registration and Transfer Record. On about Sept. 10, 2012, Fernandes also transported explosive materials in Nevada, Utah, and Arizona and detonated destructive devices in the Arizona desert.
According to other court records, from January to September 2012, several individuals reported to the FBI that Fernandes believed he was a sniper and commanding officer of a militia which was preparing to go to war with the government or an invading country. Fernandes had bragged that he possessed firearms and a large amount of ammunition and could walk into a restaurant filled with people and kill as many people as he wanted. Fernandes bragged that he was trained in the building of homemade explosives including chlorine bombs, and had made and possessed numerous pipe bombs.
Federal law enforcement agents arrested Fernandes on Sept. 13, 2012, after they observed him drive away from his residence with a shotgun in his vehicle. During a search of Fernandes’ vehicle they found a loaded Mossberg Model 500 12-gauge shotgun containing 10 rounds of ammunition. They also found at least 44 more rounds of shotgun ammunition in the vehicle. The agents also executed a federal search warrant at Fernandes’ home on Sept. 13, 2012, and recovered firearms, explosive devices, and a number of substances and tools that could be used in the building of explosive and noxious gas releasing devices, including napalm, ammonium and sodium sulfate, sulfur, cannon fuses. Additionally, they recovered two inert hand grenades, five rifles, four handguns, and thousands of rounds of ammunition, and instructive materials for making explosive devices.
This case was investigated by the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Clark County Fire Department, and the Las Vegas Metropolitan Police Department, and is being prosecuted by Assistant U.S. Attorney Nicholas D. Dickinson.Man Indicted for Robbery of First National Bank in Loganton, Pennsylvania and Two Banks in Somerset and Cambria CountiesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced the return of a five-count superseding indictment by a federal grand jury in Williamsport charging Corbin Will, age 40, of Garrett, Pennsylvania, with robbing and conspiring to rob the First National Bank in Loganton, Pennsylvania, an M&T Bank branch in Tyrone, Pennsylvania, and the 1ST Summit Bank in Salix, Pennsylvania using a dangerous weapon.
According to United States Attorney Peter J. Smith, the superseding indictment alleges that Will aided and abetted Nicole Lynn Durst in robbing the First National Bank of $3,697 on May 31, 2012. The superseding indictment also alleges that Will and Durst conspired to rob the three Pennsylvania banks between May 3, 2012 and May 31, 2012.
On April 12, 2013, Durst entered a guilty plea to robbery and conspiracy charges before United States District Judge Matthew Brann, and she is in custody pending sentencing. Will is in custody on related bank robbery charges pending in West Virginia and Maryland.
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police and 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 90 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.
Long Time Fugitive Ordered to Federal PrisonRead the Press Release
McALLEN, Texas – Alexis Estevez-Alvarez, 46, of Havana, Cuba, has been sentenced to prison following his convictions of possession with intent to distribute marijuana and failure to appear, United States Attorney Kenneth Magidson announced today. Estevez-Alvarez was convicted July 9, 2013, following less than two days of trial and approximately 30 minutes of deliberation.
Today, U.S. District Judge Randy Crane, who presided over the trial, handed Estevez-Alvarez sentences of 110 and 20 months, respectively, for the drug and failure to appear convictions to be served consecutively for a total sentence of 130 months in federal prison.
Estevez-Alvarez was originally charged in 2003, permitted release on bond and set for trial Oct. 3, 2003, before Judge Crane. Estevez-Alvarez failed to appear for court and was subsequently indicted on that charge as well.
He remained a fugitive for almost 10 years until apprehended on Oct. 29, 2012. On that date, Alvarez-Estevez was discovered in the bed of a Ford F-150 restrained and inebriated at the Progreso Port-of-Entry after someone had crossed him into the United States and then fled back to Mexico.
The original case began on June 20, 2003, when two former deputies with the Hidalgo County Sheriff’s Office approached a residence in Mercedes seeking consent to search the residence. According to evidence and testimony at trial, deputies then found 42 bundles of marijuana totaling 671 kilograms in a shed next to a pre-fabricated house on the property. Estevez-Alvarez stated he lived on the property with his wife along with another friend for approximately four months.
The government proved at trial that while a fugitive for 10 years, Estevez-Alvarez has been able to work and live in both Weslaco and Nuevo Progreso, Tamaulipas, Mexico, as well as maintain a relationship with his now ex-wife.
The defense contended that unknown individuals had “control” of Estevez-Alvarez that prevented him from showing up to court in 2003 and that it was fear of retribution from these individuals that kept him from court over the past decade.
The jury disagreed and found him guilty on both counts as charged.
Estevez-Alvarez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the Hidalgo County Sheriff’s Office and Homeland Security Investigations. Assistant United States Attorney Juan F. Alanis is prosecuting the case.
Lockport Husband and Wife Sentenced for Conspiracy to Manufacture MethamphetamineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. U.S. Attorney William J. Hochul, Jr. announced today that Thomas W. McCabe, 37, and Leah McCabe, 35, of Lockport NY, who were convicted of conspiracy to manufacture methamphetamine, were sentenced to 20 months and 12 months respectively by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that between December 2013 and May 22, 2014, Thomas McCabe conspired with others, including Leah McCabe, to manufacture methamphetamine, a Schedule I controlled substance. On December 6, 2013, law enforcement officers responded to 4890 Saunders Settlement Road in Lockport after receiving a report that there was a clandestine methamphetamine lab in the basement of the residence. Leah McCabe gave consent to search the premises, and in the basement, officers observed a clear, plastic bag containing a clear liquid clamped to the outside of a dresser drawer, a can of drain cleaner, a can of Coleman fuel, and a gas generator, which are used in manufacturing methamphetamine. Officers seized a plate containing a credit card, a razor blade and a white, powdery substance. A field-test of the white powder was positive for methamphetamine. State charges were filed at that time against Thomas McCabe and subsequently against Leah McCabe.
On May 22, 2014, law enforcement officers went to the McCabe residence at 51 Ritchie Avenue Tonawanda, NY, to execute arrest warrants for the couple who failed to appear in court with on the state charges. On that date, officers observed a plastic bag containing what appeared to be methamphetamine oil. During a security sweep of the residence, they observed a plate and credit card which contained a white powdery substance. Thomas McCabe and Leah McCabe were removed from the residence due to safety concerns, and were taken into custody.
During another search, officers discovered materials and equipment used to manufacture methamphetamine, including Coleman fuel, empty pseudoephedrine blister packs, table salt, a plastic funnel, ammonium nitrate, several empty cold packs, sodium hydroxide, a hydrochloric acid gas generator, and a one-pot methamphetamine bottle. A field test of the residue on the plate and credit card was positive for methamphetamine. The substances seized were submitted to the Niagara County Sheriff’s Department Laboratory for analysis, which determined that there was more than two ounces of a mixture and substance containing methamphetamine seized from the McCabe residence.
The sentencings are the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, the Niagara County Drug Task Force and the Niagara County Sheriff’s Department, both under the direction of Sheriff James Votour.
Loan Processor Who Helped Obtain $100 Million in Fraudulent Mortgages Sentenced to 12 Months in PrisonRead the Press Release
SAN DIEGO – United States Attorney Laura E. Duffy and Federal Housing Finance Agency Inspector General Steve A. Linick announced that John Allen, a mortgage loan processor based in Laguna Hills, was sentenced today to one year in custody by U.S. District Court Judge John A. Houston for his participation in an investment and mortgage loan fraud scheme that generated nearly $15 million in kickbacks.
Allen worked with Mary Armstrong, a self-described but unlicensed mortgage broker, and several other co-conspirators to steal money from real estate purchase transactions. Armstrong recruited “investors” through advertisements in the Los Angeles Times, Monster.com, and elsewhere, and offered them the opportunity to purchase homes using their good credit with no money down. In reality, these so-called investors were nothing more than straw buyers who were promised $10,000 for each property purchased as part of the scheme. Allen helped to secure mortgages for the properties by falsifying loan applications. Among other things, the loan applications falsely claimed exorbitant income from fake employers and used fabricated documents, which Allen helped to create, in order to support the claims. The defendants used these loan applications to obtain mortgages with 100% financing – and thus avoided having to make any down payment on the properties.
The defendants earned millions of dollars in profits by convincing the sellers of the properties to inflate the purchase price by $100,000 or more, which was allegedly to be used for construction to improve the properties. In fact, no construction work was ever performed and the funds were instead diverted (or “kicked back”) to bank accounts controlled by the defendants. Allen helped to identify properties to purchase as part of the scheme, and inflated the prices by $100,000 or more to fund the kickbacks. All together, the defendants pocketed nearly $15 million in kickbacks in this way, and allowed nearly all of the properties to swiftly fall into foreclosure. Through this scheme, the defendants arranged the purchase of approximately $100 million in mortgages, resulting in estimated total losses between $7 million and $20 million to the mortgage lenders and secondary purchasers Fannie Mae and Freddie Mac.
Allen was charged with participating in the scheme along with five others: Armstrong, Teresa Rose, a Ramona real estate agent; William Fountain, Armstrong’s assistant; Justin Mensen, a straw buyer who went on to recruit others and help to launder the funds; and Audrey Yeboah, a Los Angeles-based tax preparer who generated fake paperwork to support the loans. All of the defendants have pled guilty to participating in the scheme. Allen was the first defendant to be sentenced. Fountain is scheduled for sentencing on September 20, 2013, and Armstrong is scheduled for sentencing on September 30, 2013, both before Judge Houston.
United States Attorney Duffy explained that the American public is the very real victim of this type of widespread mortgage fraud that played such a significant role in destabilizing the country’s financial situation. She emphasized that her office would aggressively prosecute such crimes and urged anyone in the community who has information relating to these charges to contact the San Diego branch of the Federal Bureau of Investigation at (858) 565-1255 or the Federal Housing Finance Agency - Office of Inspector General hotline at (800) 793-7724.
This matter was investigated jointly by agents from the FBI and FHFA-OIG. The case is being prosecuted by FHFA-OIG Investigative Counsel and Special Assistant U.S. Attorney Emily W. Allen and Assistant U.S. Attorney Valerie Chu of the Southern District of California.
DEFENDANTS Criminal Case No. 12CR1848-JAH Mary Armstrong
Teresa Rose
William Fountain
John Allen DEFENDANT Criminal Case No. 12CR1458-JAH Justin Mensen DEFENDANT Criminal Case No. 12CR4322-JAH Audrey Yeboah SUMMARY OF CHARGESMary Armstrong, Teresa Rose, and William Fountain
Count 1: Title 18, United States Code, Section 371 -- Conspiracy to Commit Wire Fraud and to Launder Money -- statutory maximum sentence of 5 years custody, a maximum fine of $250,000 or twice the gain derived from or loss caused by the offense, and $100 special assessment.
Mary Armstrong
Count 2: Title 18, United States Code, Section 1343 -- Wire Fraud -- statutory maximum sentence of 20 years custody, a maximum fine of $250,000 or twice the gain derived from or loss caused by the offense, and $100 special assessment.
Counts 3-5: Title 18, United States Code, Section 1956(a)(1)(B)(I) -- Money Laundering -- statutory maximum sentence of 15 years’ custody, a maximum fine of $500,000 or twice the value of the property involved in the transaction, and $100 special assessment.
Justin Mensen
Information: Title 18, United States Code, Section 371 -- Conspiracy to Commit Wire Fraud and to Launder Money -- statutory maximum sentence of 5 years custody, a maximum fine of $250,000 or twice the gain derived from or loss caused by the offense, and $100 special assessment.
Audrey Yeboah
Information: Title 18, United States Code, Section 1343 -- Wire Fraud -- statutory maximum sentence of 20 years custody, a maximum fine of $250,000 or twice the gain derived from or loss caused by the offense, and $100 special assessment.
AGENCIESFederal Bureau of Investigation
Federal Housing Finance Agency - Office of Inspector GeneralLeader of Methamphetamine Smuggling Group Handed 25-Year SentenceRead the Press Release
CORPUS CHRISTI, Texas – Jose Garza Jr., 33, of Palestine, has been ordered to serve a significant federal prison sentence for his involvement in a methamphetamine conspiracy, announced United States Attorney Kenneth Magidson. Garza entered a plea of guilty June 17, 2013, to conspiracy to possess with intent to distribute as well as possession with intent to distribute more than 500 grams of methamphetamine.
Today, Senior United States District Judge John Rainey sentenced him to a total of 300 months in prison to be followed by a five-year-term of supervised release.
In November 2012, Border Patrol agents at the Sarita checkpoint stopped a vehicle driven by Zantana Brauher, 21, of Frankston, at which time a routine K-9 exam resulted in an alert prompting agents to refer the vehicle to secondary for further inspection. A short time later, another vehicle entered the primary inspection area of the checkpoint. Brian Gallandt, 26, of Palestine, was driving and had as passengers Crystal Rodgers, 29, and LaKendra Jackson, 24, both also of Palestine, and Christian Durden, 18, of Houston. A K-9 alerted to the vehicle and they were also referred to secondary inspection.
Agents were able to determine all knew each other and the two vehicles were traveling together. During a detailed inspection, agents discovered two bundles of methamphetamine concealed on Durden’s body, three on the body of Rodgers and three concealed on Jackson’s body. One bundle of methamphetamine as well as a loaded handgun were found concealed on Gallandt. The nine bundles of methamphetamine had a total weight of approximately 4.04 kilograms and a purity of 100%.
A third vehicle traveling with the group was subsequently discovered at a gas station in Riviera. Inside the vehicle were Jose Garza and Claudia Garza, 35, of San Benito. Investigation determined that Garza was the leader of the smuggling group. He had recruited and hired the co-conspirators to travel from Palestine to the Rio Grande Valley to transport the narcotics back for further distribution. Claudia Garza was discovered as the person that had strapped the bundles of methamphetamine to the others.
All co-conspirators also pleaded guilty. Gallandt and Rodgers were each sentenced to 126 months in prison, while Durden, Jackson and Brauher are each serving a 96-month sentence.
Claudia Garza is set for sentence on Oct. 15, 2013.
In federal custody since his arrest, Jose Garza will remain in custody and serve his sentence at a U.S. Bureau of Prisons facility to be designated in the near future.
The conviction and sentence stems from an investigation by Drug Enforcement Administration and Border Patrol. This case was prosecuted by Assistant U.S. Attorney Lance Watt.
Kaylene Shane Red Wolf Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney(s Office announced that during a federal court session in Great Falls, on September 12, 2013, before U.S. District Judge Sam E. Haddon, KAYLENE SHANE RED WOLF, a 44-year-old resident of Hardin, pled guilty to theft from local government receiving federal funding. Sentencing has been set for January 1, 2014. She is currently released on special conditions.
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:
The Lodge Grass Public Schools - on the Crow Indian Reservation - operates with approximately $4.5 million in annual federal funding.
RED WOLF was a Payroll Clerk for the Lodge Grass Public Schools (LGPS) from October 2011 to her resignation on September 11, 2012.
In June 2012, RED WOLF executed a double salary scheme whereby she would issue herself a partial pay check even though she also arranged payment to herself through direct deposit for the same hours worked. She doubled her pay for those hours on five separate occasions between June 20, 2012, and August 15, 2012.
Between November 4, 2011, and June 12, 2012, RED WOLF also employed a scheme whereby she wrote other checks for her own benefit. These fraudulent payments involved pay for hours not documented as having been worked and overpayments for holiday pay.
When interviewed about the allegedly illegal payments, RED WOLF admitted that she was not entitled to receive the full 80 hours on her normal payday when she had already advanced herself a portion of those hours between paydays. RED WOLF admitted she was the person that input the payroll hours into the LGPS computer system so the paychecks could be issued to employees, including herself. RED WOLF said she intended to repay the unauthorized funds she received while employed as the Payroll Clerk for the LGPS, but that she had not made any repayments due to other financial difficulties she was experiencing.
When the questioning turned to the other allegedly improper payments, RED WOLF terminated the interview.
The loss to the Lodge Grass Public Schools was $10,002.60, although RED WOLF terminated the interview before some of the questioned payments were discussed. The United States and RED WOLF will endeavor to reach an understanding about the total amount of loss well before sentencing.
RED WOLF faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the U.S. Department of Interior - Office of Inspector General.
Johnstown Man Violated Federal Drug and Gun LawsRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
Che Rose, 27, pleaded guilty to two counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Sept. 10, 2009, Rose possessed less than five grams of cocaine base, commonly known as "crack," with the intent to distribute it.
Further, on the same date Rose, who had been convicted in 2005 in Cambria County, Pa., of Drug Act Violation/delivery-possession with the intent to deliver a controlled substance unlawfully possessed an H & R revolver. Federal law prohibits persons who have been convicted of a crime punishable by imprisonment for more than one year from possessing ammunition or firearms. Drug Act Violation/delivery-possession with intent to deliver a controlled substance is such a crime.
Judge Gibson scheduled sentencing for Feb. 6, 2014, at 11 a.m. The law provides for a total sentence of 30 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Johnstown Police Department, the Cambria County Drug Task Force and the Laurel Highlands Resident Agency of the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Rose.
According to Mr. Hickton, Rose is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Inmate Indicted for Assaulting Corrections OfficersRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that a federal grand jury in Williamsport returned an indictment on September 11 charging an inmate from the United States Penitentiary at Lewisburg, Pennsylvania.
According to United States Attorney Peter J. Smith, Maurice Weaver, age 37, is charged with assaulting the Warden and Associate Warden at the Allenwood Penitentiary on January 13, 2012. After the assaults, inmate Weaver was transferred later that day to the Lewisburg Penitentiary where he assaulted a corrections officer from that institution. None of the injuries were life threatening or required outside medical treatment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney William Simmers.
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 60 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.
Huntington Woman Gets Prison Time for Heroin Distribution SchemeRead the Press Release
HUNTINGTON, W.Va. – A 30-year-old woman was sentenced to 21 months in prison today for her role in a heroin distribution scheme, announced U.S. Attorney Booth Goodwin. Ashlei Steinbrecher, of Huntington, previously pleaded guilty to aiding and abetting the distribution of heroin.
On January 23, 2013, Steinbrecher arranged a heroin transaction between co-defendant Alvaro J. Jaime Jr. and what determined to be a Drug Enforcement Agent (DEA) agent working undercover. Steinbrecher and Jaime met the undercover DEA agent at a predetermined location in Chesapeake, Ohio. Jaime, who at the time indicated that he did not have enough heroin to complete the transaction, directed Steinbrecher and the undercover agent to a second location in Huntington, where they met with another heroin dealer. After arriving in Huntington, Jaime met the heroin dealer in the parking lot of a Huntington-area restaurant. Jaime obtained approximately four grams of heroin from his source of supply. Afterward, Jaime distributed the heroin to an undercover DEA agent in exchange for $600. Steinbrecher received $200 in pre-recorded U.S. currency as payment for her role in the transaction. The transaction was recorded by law enforcement authorities using audio and video surveillance.
Steinbrecher also arranged illegal heroin transactions on January 29, 2013 and in February 2013 and received cash payments for her participation.
Alvaro F. Jaime, Jr., 29, of Chesapeake, Ohio, was sentenced last week to 46 months in federal prison for selling heroin.
The DEA and Huntington Police Department conducted the investigation. Assistant United States Attorney Gregory McVey handled prosecution.
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Huntington Crack Cocaine Dealer Sentenced to 14 Years in Federal PrisonRead the Press Release
Michael Lashawn Johnson admits distributing nearly 2 kilos of crack cocaine
HUNTINGTON, W.Va. – Michael Lashawn Johnson, also known as “Spank,” of Huntington, was sentenced today to 14 years in prison for selling crack cocaine, announced U.S. Attorney Booth Goodwin. The sentence was handed down by Chief United States District Judge Robert C. Chambers in federal court in Huntington. Johnson, 34, previously pleaded guilty to conspiracy to distribute 280 grams or more of crack cocaine.
Johnson sold crack cocaine during a conspiracy that began as early as 2006. During the scheme, Johnson obtained crack cocaine and powder cocaine from Columbus and brought it back to Huntington to sell. Johnson was a frequent source of supply of crack cocaine to other drug dealers in and around Huntington.
On December 6, 2010, Johnson’s vehicle was stopped along State Route 104 by members of the Ohio State Highway Patrol. During the traffic stop, an Ohio Highway Patrol police dog performed a search on the defendant’s vehicle. The vehicle search revealed $33,000 in cash. On April 13, 2011, members of the Huntington Violent Crime and Drug Task Force used a confidential informant to conduct a controlled purchase of crack cocaine from Johnson. The defendant later sold 10.9 grams of crack cocaine to the police informant in exchange for $700. On February 7, 2013, an arrest warrant was issued for Johnson. Police arrested Johnson at his Huntington residence. At the time of his arrest, police also found items consistent with the production of crack cocaine inside Johnson’s residence, along with a .40 caliber semi-automatic pistol.
In total, Johnson is responsible for distributing approximately two kilograms of crack cocaine.
This case was investigated by the Huntington Violent Crime and Drug Task Force. Assistant United States Attorney Gregory McVey handled the prosecution.
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High-level Colombian Drug Trafficker Sentenced to 194 Months in PrisonRead the Press Release
Jose Maria Corredor-Ibague, aka “Boyaco,” a high-level drug trafficker and supporter of the Fuerzas Armadas Revolucionarias de Colombia (FARC), has been sentenced in Washington, D.C., to serve 194 months in prison. Corredor-Ibague was the first person in the nation to be indicted under the federal narco-terrorism statute, which became law in March 2006.
The sentencing was announced today by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Acting Assistant Attorney General John P. Carlin of the Justice Department’s National Security Division; U.S. Attorney Ronald C. Machen Jr. of the District of Columbia; Michele M. Leonhart, Administrator of the U.S. Drug Enforcement Administration; FBI Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Miami Special Agent in Charge Alysa D. Erichs; and Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service Southeast Field Office.
“Jose Maria Corredor-Ibague was an international drug lord who moved cocaine around the world through a close, criminal partnership with the FARC,” said Acting Assistant Attorney General Raman. “This narco-terrorism case was the first of its kind. As this 194-month sentence demonstrates, the Justice Department is firmly committed to working with its counterparts to hold accountable anyone who uses narco-trafficking to support, assist and enable terrorism.”
“This defendant led a drug transportation network that distributed thousands of kilograms of cocaine to destinations in the United States and other countries, often acting in concert with the FARC terrorist organization,” said U.S. Attorney Machen. “He was a leader of a broader conspiracy that engaged in narco-terrorism, and his apprehension, prosecution and 194-month prison sentence show that law enforcement is committed to combatting drug traffickers and those who provide support to terrorist groups.”
Corredor-Ibague’s sentence was unsealed today in U.S. District Court in the District of Columbia. On Monday, Sept. 9, 2013, Corredor-Ibague, 46, a Colombian National, was sentenced by U.S. District Judge Gladys Kessler. In addition to his prison term, Corredor-Ibague was sentenced to serve three years of supervised release.
Corredor-Ibague was arrested in Colombia on Oct. 15, 2006. He was extradited to the United States in October 2008 and subsequently pleaded guilty to one count of conspiracy to distribute cocaine while knowing and intending that the cocaine would be imported into the United States, one count of narco-terrorism and one count of conspiracy to provide material support or resources to a foreign terrorist organization.
According to court documents, Corredor-Ibague was the leader of an extensive drug manufacturing and transportation network that processed and manufactured cocaine in Colombian laboratories and used airplanes to fly multi-hundred kilogram loads of cocaine from clandestine airstrips in Colombia to various countries, including Brazil, Guyana, Mexico, Paraguay, Suriname and Venezuela. From these countries, which were often used as transshipment points, the cocaine was sent to destinations in the United States and Europe. Corredor-Ibague controlled the clandestine airstrips used by his organization and also owned and operated the laboratories used to manufacture and package the cocaine. Corredor-Ibague and his associates also transported cocaine owned by other drug trafficking organizations, including cocaine belonging to the FARC.
Corredor-Ibague’s drug trafficking activities were conducted with the protection of the FARC. In particular, the FARC’s “First Front” combat group profited from the activities of Corredor-Ibague and his associates. Corredor-Ibague paid taxes to the FARC using U.S. currency and weapons. Additionally, Corredor-Ibague provided material support, assistance and resources to the FARC, including assault-type weapons, machine guns, ammunition, uniforms and sophisticated communications equipment. Corredor-Ibague conducted these activities with knowledge that the FARC engaged in terrorist activity and terrorism in Colombia and elsewhere.
“This narco-terrorist illegally exported sophisticated US military weapons and communications equipment to support criminal activities by a designated terrorist organization,” said DCIS Special Agent in Charge Khin. “Joint investigations such as these highlight the success of multi-agency partnerships in protecting America’s national security interests in this region.”
This case was investigated by the DEA, the ICE-HSI Miami Field Office, the Defense Criminal Investigative Service (DCIS) Southeast Field Office and the FBI Miami Field Office. Additionally, the U.S. government expresses its grateful appreciation to the government of Colombia for their assistance and support during the investigation, arrest and extradition.
The case was jointly prosecuted by Trial Attorneys Robert Raymond and Jamie Perry of the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS); Trial Attorney Glenn Alexander, formerly of NDDS and now with the Criminal Division’s Computer Crime and Intellectual Property Section; Assistant U.S. Attorney Anthony Asuncion of the District of Columbia; and Trial Attorney David Cora of the National Security Division’s Counterterrorism Section. The Criminal Division’s Office of International Affairs also provided significant assistance in the provisional arrest and extradition of Corredor-Ibague.
High-Level Colombian Drug Trafficker Sentenced to 194 Months in PrisonRead the Press Release
WASHINGTON – Jose Maria Corredor-Ibague, aka “Boyaco,” a high-level drug trafficker and supporter of the Fuerzas Armadas Revolucionarias de Colombia (FARC), has been sentenced in Washington, D.C., to serve 194 months in prison. Corredor-Ibague was the first person in the nation to be indicted under the federal narco-terrorism statute, which became law in March 2006.
The sentencing was announced today by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Acting Assistant Attorney General John P. Carlin of the Justice Department’s National Security Division; U.S. Attorney Ronald C. Machen Jr. of the District of Columbia; Michele M. Leonhart, Administrator of the U.S. Drug Enforcement Administration; FBI Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Miami Special Agent in Charge Alysa D. Erichs; and Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service Southeast Field Office.
“Jose Maria Corredor-Ibague was an international drug lord who moved cocaine around the world through a close, criminal partnership with the FARC,” said Acting Assistant Attorney General Raman. “This narco-terrorism case was the first of its kind. As this 194-month sentence demonstrates, the Justice Department is firmly committed to working with its counterparts to hold accountable anyone who uses narco-trafficking to support, assist and enable terrorism.”
“This defendant led a drug transportation network that distributed thousands of kilograms of cocaine to destinations in the United States and other countries, often acting in concert with the FARC terrorist organization,” said U.S. Attorney Machen. “He was a leader of a broader conspiracy that engaged in narco-terrorism, and his apprehension, prosecution and 194-month prison sentence show that law enforcement is committed to combatting drug traffickers and those who provide support to terrorist groups.”
Corredor-Ibague’s sentence was unsealed today in U.S. District Court in the District of Columbia. On Monday, Sept. 9, 2013, Corredor-Ibague, 46, a Colombian National, was sentenced by U.S. District Judge Gladys Kessler. In addition to his prison term, Corredor-Ibague was sentenced to serve three years of supervised release.
Corredor-Ibague was arrested in Colombia on Oct. 15, 2006. He was extradited to the United States in October 2008 and subsequently pleaded guilty to one count of conspiracy to distribute cocaine while knowing and intending that the cocaine would be imported into the United States, one count of narco-terrorism and one count of conspiracy to provide material support or resources to a foreign terrorist organization.
According to court documents, Corredor-Ibague was the leader of an extensive drug manufacturing and transportation network that processed and manufactured cocaine in Colombian laboratories and used airplanes to fly multi-hundred kilogram loads of cocaine from clandestine airstrips in Colombia to various countries, including Brazil, Guyana, Mexico, Paraguay, Suriname and Venezuela. From these countries, which were often used as transshipment points, the cocaine was sent to destinations in the United States and Europe. Corredor-Ibague controlled the clandestine airstrips used by his organization and also owned and operated the laboratories used to manufacture and package the cocaine. Corredor-Ibague and his associates also transported cocaine owned by other drug trafficking organizations, including cocaine belonging to the FARC.
Corredor-Ibague’s drug trafficking activities were conducted with the protection of the FARC. In particular, the FARC’s “First Front” combat group profited from the activities of Corredor-Ibague and his associates. Corredor-Ibague paid taxes to the FARC using U.S. currency and weapons. Additionally, Corredor-Ibague provided material support, assistance and resources to the FARC, including assault-type weapons, machine guns, ammunition, uniforms and sophisticated communications equipment. Corredor-Ibague conducted these activities with knowledge that the FARC engaged in terrorist activity and terrorism in Colombia and elsewhere.
“This narco-terrorist illegally exported sophisticated US military weapons and communications equipment to support criminal activities by a designated terrorist organization,” said DCIS Special Agent in Charge Khin. “Joint investigations such as these highlight the success of multi-agency partnerships in protecting America’s national security interests in this region.”
This case was investigated by the DEA, the ICE Miami Field Office, the Defense Criminal Investigative Service (DCIS) Southeast Field Office and the FBI Miami Field Office. Additionally, the U.S. government expresses its grateful appreciation to the government of Colombia for their assistance and support during the investigation, arrest and extradition.
The case was jointly prosecuted by Trial Attorneys Robert Raymond and Jamie Perry of the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS); Trial Attorney Glenn Alexander, formerly of NDDS and now with the Criminal Division’s Computer Crime and Intellectual Property Section; Assistant U.S. Attorney Anthony Asuncion of the District of Columbia; and Trial Attorney David Cora of the National Security Division’s Counterterrorism Section. The Criminal Division’s Office of International Affairs also provided significant assistance in the provisional arrest and extradition of Corredor-Ibague.
13-318Heroin Dealers Connected with Two Tuscaloosa Overdose Deaths Among 50 Defendants in Federal RoundupRead the Press Release
BIRMINGHAM -- Two Birmingham men charged in connection with the heroin overdose deaths of two young men in Tuscaloosa early this year are among defendants still being sought in an arrest roundup today that is part of an ongoing law enforcement effort to attack the supply side of the growing heroin problem in the Northern District of Alabama, announced U.S. Attorney Joyce White Vance and federal Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris.
Special agents with DEA, FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives, along with U.S. Marshals, Gulf Coast High Intensity Drug Trafficking Area Task Force, and state and local police, fanned out across North Alabama this morning to arrest 50 people indicted over the past six months in an operation to take heroin dealers off the streets. As of this afternoon, 40 defendants are in custody on drug distribution charges. Arrests continue. This operation is part of a larger initiative, launched in Spring 2012, to track the sources of heroin in Jefferson, Shelby and Tuscaloosa counties and prosecute those responsible for trafficking the addictive drug that is killing people in increasing numbers.
Confirmed heroin overdose deaths in the three counties increased five-fold between 2008 and 2012, rising from 15 to 83. The majority of the 83 people who died in 2012 were in their 20s and 30s, but teenagers also are dying in increasing numbers.
"Seeking to enhance their illicit profits, drug dealers in our community have shifted their business to selling heroin, which is highly addictive," Vance said. "This shift has led to skyrocketing overdose death rates among young people. Our action today brings together federal, state and local law enforcement who have worked over the past year to interdict the supply of heroin and get the dealers who supply it to our youth off the streets and into federal prison," she said. "We have begun, and look forward to continuing to engage community leaders in efforts to raise awareness about the risks of heroin and combat the demand for it. This is a community-wide issue that parents, educators and medical professionals need to be aware of, along with law enforcement."
"Over the past several months, law enforcement in Northern Alabama has tirelessly investigated heroin trafficking," Morris said. "Our combined investigative and prosecutorial efforts should send a clear message to drug traffickers. That message is that law enforcement shares the common goal to protect our communities and children from those who sell poison. We will be relentless in our pursuit of those criminals who attempt to destroy the futures of our children," he said.
The two men in Tuscaloosa whose overdose deaths are now connected to heroin sold in Birmingham were 20 and 28 years old. Both men, the younger a University of Alabama student, died in the same Tuscaloosa apartment complex within the span of one month.
The two men being sought in connection with those deaths face charges that include distributing heroin "and death resulted from the use of said heroin."
Law enforcement agencies working with DEA in the months-long investigation leading to today's arrests include the Hoover, Pelham, Gardendale, Vestavia Hills, Tuscaloosa, Hueytown, Bessemer and Pleasant Grove police departments, Marshall County Drug Task Force, Gulf Coast HIDTA Task Force, Alabama Beverage Control Board, Alabama Bureau of Investigation, Jefferson and Shelby County sheriff's offices, and district attorney's offices for Jefferson, Shelby and Tuscaloosa counties and the Bessemer Cutoff.In drug-trafficking prosecutions in the Northern District in the past two years, separate from today's arrests, authorities have seized nearly five kilograms of heroin.
The government seized 2.5 kilograms of heroin and 40 kilograms of cocaine in one 2012 drug-trafficking case. A federal grand jury indicted 11 people in that case, including key defendants TONY SCALES, 54, of Birmingham, and WILBERT HANKINS, 43, of Hoover. All 11 have pled guilty to drug distribution charges. A federal judge has ordered the defendants, jointly, to forfeit $16 million to the government as proceeds of illegal activity.
Hankins and Scales both served time for prior convictions on federal drug charges and restarted their illicit business when they were released from prison about 2008. According to evidence in the case, Hankins had maintained contact with supply sources in California and secured large loads of drugs that were transported to Birmingham. Scales, operating mainly from a house in Ensley, used a network of distributors to sell the drugs.
Demand for heroin from Scales' customers steadily drove Hankins to include heroin with his shipments of cocaine. DEA agents seized the 2.5 kilograms of heroin and 40 kilograms of cocaine in April 2012 as it moved from California to Alabama.
A drug-trafficking conspiracy case investigated by the FBI and the Jefferson County Sheriff's Office led to the indictment and arrests of nine people in May and the seizure of two kilograms of nearly pure heroin and 1.5 kilograms of cocaine. That case focuses on a large-scale drug-distribution network in western Birmingham. Trial is pending for all nine defendants.
The public is reminded that indictments contain only charges. Defendants are presumed innocent and it is the government's responsibility to prove guilt beyond a reasonable doubt at trial.
Greenwich Man Indicted on Child Pornography ChargesRead the Press Release
Alleged Possession of Three Thumb Drives Containing Child Pornography
ALBANY, NEW YORK — A grand jury returned an indictment charging TIMOTHY TEFFT, age 64, of Greenwich, New York, with three counts of possessing child pornography announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in- Charge, Federal Bureau of Investigation, Albany Division.1 TEFFT faces up to ten years of imprisonment and a maximum fine of $250,000 on each count.
TEFFT had his initial appearance and arraignment on the charges in Albany today before the Honorable Christian F. Hummel, United States Magistrate Judge. TEFFT was detained pending his trial which has been scheduled for November 18, 2013 at 9:30 a.m. before Chief United States District Court Judge Gary L. Sharpe.
According to the indictment, between January 1, 2010 and May 3, 2011, TEFFT possessed three thumb drives, each of which contained images of child pornography.
This case is being investigated by the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Rick Belliss.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources.”
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1The charge is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Georgia Man Charged with Traveling from New York to New Jersey to Have Sexual Contact with A Minor, Distributing Child PornographyRead the Press Release
TRENTON, N.J. – A Georgia man living in Long Island, N.Y., was charged today with traveling from New York to New Jersey for the purpose of having sexual contact with a minor and with distributing child pornography, U.S. Attorney Paul J. Fishman announced.
Richard J. Simone Jr., 23, of Acworth, Ga., is charged by complaint with one count of traveling across state lines for the purpose of engaging in illicit sexual conduct with a minor and one count of distribution of child pornography. Simone made his initial court appearance today before U.S. Magistrate Judge Lois H. Goodman and was detained pending a bail hearing on Friday, Sept. 20, 2013.
According to the criminal Complaint filed today in Trenton federal court:
Beginning in July 2013, an undercover special agent of Homeland Security Investigations, Department of Homeland Security, began communicating via the internet with Simone. Over the course of July, August, and September, Simone and the undercover agent engaged in numerous, graphic communications over the internet regarding Simone having sex with the undercover agent’s fictitious 9-year-old daughter and fictitious minor babysitter. During an online conversation in August 2013, Simone sent nine images of child pornography to the undercover agent. On Sept. 13, 2013, Simone traveled from Long Island, where he was living, to Monmouth County, N.J., for the purpose of having sex with the undercover agent’s fictitious daughter and babysitter. Simone was arrested upon his arrival at the location in Monmouth County where he and the undercover agent had arranged to meet prior to the sexual conduct.
The charge of traveling with the purpose of engaging in illicit sexual conduct with a minor carries a maximum potential penalty of 30 years in prison and a $250,000 fine. The charge of distribution of child pornography carries a mandatory minimum of five years, a maximum penalty of 20 years, and a $250,000 fine.
U.S. Attorney Fishman credited agents of Homeland Security Investigations, under the direction of Special Agent in Charge Andrew McLees in Newark, and the West Long Branch Borough Police Department, under the direction of Chief of Police Lawrence L. Mihlon, for the investigation leading to today’s complaint. He also thanked HSI New York; U.S. Customs and Border Protection, and the Monmouth County Prosecutor’s Office, for their assistance with the investigation.
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 U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government is represented by Harvey Bartle, attorney in charge of the U.S. Attorney’s Trenton Office.The charges and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
13-371
Defense counsel: Andrea Bergman, Assistant Federal Public Defender, Trenton
Simone Complaint
Former Vickburg Mayor Pleads Guilty to BriberyRead the Press Release
Natchez, Miss – Paul Winfield, 40, former mayor of the city of Vicksburg, Mississippi, pled guilty in U.S. District Court today to bribery in connection with a pre-event disaster contract for the city of Vicksburg, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
Winfield will be sentenced by U.S. District Senior Judge David C. Bramlette III on November 19, 2013 at 9:30 a.m. and faces a maximum penalty of ten years in prison and a $250,000 fine.
In early 2012, while serving as the mayor of Vicksburg, Winfield met with a Federal Bureau of Investigation (“FBI”) source, where they discussed pre-event disaster contracts for the city of Vicksburg. On July 18, 2012, Winfield again met with the FBI source at a restaurant in Jackson. After dinner, Winfield and the FBI source met inside the source’s vehicle and the FBI source asked Winfield what would need to be done in order for the source’s company to get the pre-event disaster contract. Winfield responded “Ten” and held up ten fingers, signifying $10,000. The FBI source asked Winfield if the FBI source could pay $5,000 now and $5,000 once the contract was awarded. Winfield agreed and the FBI source paid Winfield $5,000 cash in the vehicle at that time.
On August 17, 2012, the FBI source met with Winfield in Natchez, Mississippi, where he paid Winfield an additional $2,000 in cash and asked if another $3,000 would be enough. The source then promised Winfield another $3,000 after the pre-event disaster contract was awarded.
As part of his plea agreement, Winfield agreed to forfeit the bribe money he accepted and he also agreed to neither run for elected public office nor apply for or be employed by any governmental entity in the future.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Mike Hurst.
###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:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Former Pinellas County Housing Authority Employee Pleads GuiltyRead the Press Release
Tampa, FL - Acting United States Attorney A. Lee Bentley, III announces that Keomala Phandara Khammanivong (32, St. Petersburg) today pleaded guilty to charges of stealing and embezzling funds from the Pinellas County Housing Authority. She faces a maximum penalty of ten years in federal prison.
According to the facts presented at the plea hearing, Khammanivong was employed as a “Cashier/Clerk Typist” by the Pinellas County Housing Authority (PCHA) at the French Villas in St. Petersburg, from July 7, 2008 to August 8, 2012. In that job position, Khammanivong was responsible for a variety of tasks, which included receiving, counting, and balancing payments of rent made by the tenants, issuing receipts to tenants; and making daily bank deposits. During this time, Khammanivong received money orders from various PCHA tenants and either altered or wrote out the money orders in her name. She then deposited these altered or fraudulent money orders in her personal bank account, instead of depositing the funds in the PCHA accounts. Over this time period, Khammanivong stole a total of $23,126, from the Pinellas County Housing Authority and spent these funds for her personal use.
This case was investigated by U.S. Department of Housing and Urban Development, Office of Inspector General. It is being prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Former Employee Sentenced to Probation, Community Service for Stealing $1,800 from DEARead the Press Release
PITTSBURGH - A former United States Drug Enforcement Administration (DEA) employee was sentenced today in federal court to one year probation with 50 hours of community service on her conviction of theft of government property, United States Attorney David J. Hickton announced today.
Senior United States District Judge Donetta W. Ambrose imposed sentence upon Holly A. Cook, 44, of Monongahela, PA.
According to information presented to the court, in June 2012, Cook embezzled to her own use $1,800 in cash of the DEA, monies to which she knew she was not entitled.
Prior to imposing sentence, Judge Ambrose took into consideration the defendant's lack of a criminal history, her early acceptance of responsibility and her full repayment of the $1,800 embezzled by her.
Assistant United States Attorney Mary McKeen Houghton prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Special Agents of the United States Department of Justice, Office of the Inspector General, who conducted the investigation that led to the successful prosecution of Cook.
Former Bank of the Commonwealth Executive Sentenced to 17 Years in Prison for Massive FraudRead the Press Release
NORFOLK, Va. – Stephen G. Fields, 49, of Chesapeake, Virginia, was sentenced today to 17 years in prison, followed by 5 years of supervised release, for conspiracy to commit bank fraud, false entries in bank records, misapplication of bank funds, and false statement to a financial institution. The Court further ordered Fields to pay $331,860,955.43 in restitution to the Federal Deposit Insurance Corporation, and to forfeit $61,625,789.79 in proceeds from the offense.
Kathleen M. Kahoe, Acting United States Attorney for the Eastern District of Virginia; Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office; Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office (IRS-CI); Christy L. Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Jon T. Rymer, Inspector General of the Federal Deposit Insurance Corporation (FDIC-OIG); and Mark Bialek, Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau (FRB-CFPB OIG) made the announcement after sentencing by United States District Judge Raymond A. Jackson.
“Defendant Fields’ criminal acts were not only felonious violations of the law, but also contributed to the collapse of the Bank of the Commonwealth during the economic crisis,” said Acting United States Attorney Kathleen M. Kahoe. “We are committed to investigating and ferretting out these white collar crimes, which have devastating and far reaching consequences. These frauds will not be tolerated and I wish to commend the steadfast determination of our prosecutors and law enforcement partners who dedicated countless hours in seeing that justice was achieved in this case.”
“Today, those responsible for the corruption leading to one of the biggest bank failures in Virginia history impacting our Hampton Roads community were held accountable,” said FBI Special Agent In Charge Royce E. Curtin. “The extensive two year investigation led by FBI Norfolk Division, in conjunction with IRS, SIGTARP, FDIC-OIG, and IG-FRB, identified and unraveled a criminal enterprise conducting complex fraudulent financial transactions. This case reflects the FBI and its partners' commitment to protect our communities by aggressively investigating and bringing to justice individuals exploiting their influence or position for personal gain.”
“The culture among senior executives at TARP applicant Bank of the Commonwealth was rotten at its core, and Fields was a principal contributor to the stench of corruption and entitlement at the bank,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “As a former bank examiner, Fields should have stopped and blown the whistle, but instead, he engaged in an extend and pretend scheme to mask past-due loans, rigged auctions to get foreclosed property off of the bank’s books, and lied to bank examiners. Let today’s sentencing serve as a warning to anyone engaged in fraud involving TARP – SIGTARP and its law enforcement partners will bring justice and hold you accountable for your crimes.”
“The FDIC OIG is pleased to join the U.S. Attorney’s Office and our law enforcement colleagues in announcing the sentencing of Mr. Fields,” said FDIC Inspector General Jon T. Rymer. “It is particularly troubling to the FDIC OIG when bank insiders who are entrusted with operating their banks in a safe and sound manner violate that trust and engage in activities that contribute to losses to the Deposit Insurance Fund. As evidenced in today’s sentencing, those who undermine the integrity of the financial system will be brought to justice.”
“Today’s sentencing shows that bank executives who engage in illegal activities that undermine the public trust will be brought to justice,” said Mark Bialek, Inspector General of the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau. “We will continue to work with our law enforcement partners to vigorously pursue wrongdoers whose fraudulent actions materially impact the Federal Reserve Board’s supervision program.”
Fieldswas found guilty after a lengthy, ten week, jury trial on May 24, 2013. Evidence presented at trial demonstrated that Fields, a former Executive Vice President and Senior Commercial Loan Officer for the Former Bank of the Commonwealth (“Bank”), engaged in an illegal reciprocal relationship with certain troubled borrowers to mask the Bank’s deteriorating financial condition. Conspirators Thomas E. Arney, Eric H. Menden, and George P. Hranowskyj all testified at trial that, at the request of Fields, they performed favors such as buying Bank of the Currituck stock, bailing out the Bank President’s son on bad investments, and purchasing bank-owned property with fully-funded Bank of the Commonwealth loans. In return, Arney, Menden and Hranowskyj all received preferential treatment such as affording large overdrafts, sometimes for hundreds of thousands of dollars, below-market interest rates, loans to make interest payments on other loans, and easy access to credit. Fields continued to lend millions of dollars to Arney, Menden and Hranowskyj despite knowledge of their serious financial problems, and even after Hranowskyj had accused Menden of embezzling money from one of the Bank’s largest construction loans.As a further part of the scheme, Fields assisted in the removal of hundreds of past-due loans from past due loan reports prepared for the Bank’s Board of Directors. For example, Fields took draws from a construction loan for the 345 Granby Street property to make payments on wholly unrelated loans. Fields was well aware that such loans should appear on the Bank’s past due loan report, but took steps to conceal their past due status to mask the Bank’s diminishing financial condition. On more than one occasion, the Federal Reserve Bank of Richmond criticized Fields for failing to comply with the Bank’s internal controls, and for jeopardizing the safety and soundness of the financial institution. This is so even though Fields used to work at the Federal Reserve Bank of Richmond as a safety and soundness examiner.
Finally, Fields also facilitated self-dealing and preferential treatment at the Bank’s expense for co-defendants Edward Woodard, Troy Brandon Woodard, and his own loan assistant. For example, Fields arranged for Arney to purchase Edward Woodard’s personal condominium at an inflated price using 100% financing from the Bank. Fields himself substantially benefited throughout this conspiracy by receiving substantial benefits from the Bank in the form of a large salary, a company car and other employment benefits. Moreover, one of the Bank’s largest borrowers, Mr. Menden and Mr. Hranowskyj, paid over $6,000 to install granite countertops and other amenities in Mr. Fields’s kitchen.
In addition to having a substantial impact on property values in the Hampton Roads area, Fields’s crimes were a significant factor in the failure of the Bank of the Commonwealth on September 23, 2011. As a result of this failure, the Federal Deposit Insurance Corporation has sustained at least $333 million in losses.
The Investigation was conducted by the FBI’s Norfolk Office, Field Office, IRS-CI, SIGTARP, FDIC-OIG, and FRB-CFPB OIG. Assistant United States Attorneys Katherine Lee Martin, Uzo Asonye, and Melissa E. O’Boyle 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.Former Alabama Real Estate Investor Pleads Guilty to Making False Statement in Connection with Real EstateForeclosure Auction InvestigationRead the Press Release
A former investor in the Alabama real estate foreclosure auctions industry pleaded guilty today to one count of making false statements, the Department of Justice announced.
Ali Forouzan, of Mobile, Ala., pleaded guilty in the U.S. District Court for the Southern District of Alabama in Mobile to making materially false and fictitious statements to a Special Agent of the FBI and a Department of Justice Antitrust Division prosecutor. The false statements were in regard to his knowledge of, and participation in, bid rigging and other fraudulent schemes in the Alabama real estate foreclosure auction industry.
According to the charge, in February 2012, Forouzan was interviewed, with counsel present, about the fraudulent schemes under investigation. Forouzan was aware of the nature of the investigation and knew that it was material for the FBI and the Antitrust Division to obtain his full knowledge of such unlawful acts as bid-rigging agreements and other fraudulent schemes relating to real estate foreclosure auctions; unlawful payoffs that he and others made and received in furtherance of such schemes; and secret, second auctions in which Forouzan and others participated. However, Forouzan willfully and knowingly provided false and fictitious information during his interview.
“The Antitrust Division views attempts to compromise the integrity of its investigations as a serious offense,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “Today’s filing should send a clear signal that the Antitrust Division is committed to prosecuting vigorously attempts to cover-up illegal, anticompetitive conduct.”“The success of this investigation exemplifies the FBI’s continued commitment to fight fraud in the real estate industry and serves to deter those who wish to illegally profit from fraud schemes,” said Stephen E. Richardson, FBI Special Agent in Charge of the Mobile Field Office. Special Agent in Charge Richardson praised the perseverance of agents and prosecutors in this complex investigation.
Including Forouzan, to date, nine individuals and two companies have pleaded guilty as a result of the department’s ongoing investigation into the Alabama real estate foreclosure auction industry.
Forouzan faces a maximum penalty of five years in prison, three years of supervised release and a $250,000 fine.
The charge against the defendant arose from an ongoing investigation into bid rigging and other fraudulent schemes in the Alabama real estate foreclosure auctions industry. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should call 404-331-7116 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.Federal Prosecutions Focusing on Gun, Drug and Violent Crime in Brunswick, GA Area Six Guilty PleasRead the Press Release
BRUNSWICK, GA Cortez Arbery, 25, of Brunswick, pled guilty earlier this month before Chief United States District Court Judge Lisa Godbey Wood to being a felon in possession of a firearm. If Arbery is determined to be an “armed career criminal,” he faces a minimum of 15 years in federal prison. During the guilty plea hearing, the evidence showed that Arbery possessed a stolen .38 caliber pistol after having been previously convicted of three felony drug offenses.
Arbery’s guilty plea was the latest in a series of federal prosecutions focusing on gun, drug and violent crime in the Brunswick, Georgia area. Five others previously pled guilty in federal court for their role in weapons and drug offenses: Gromyko Green, 33, pled guilty to possessing a sawed-off shotgun and cocaine; John Wesley Boone, 27, pled guilty to being a felon in possession of a firearm; Calvin Grovener, 24, pled guilty to being a felon in possession of a firearm; Patrick Tenney, 23, pled guilty to receiving a firearms while under indictment; and, Reginald Beckham, 19, pled guilty to trafficking crack cocaine. The sentencings of each of the six defendants will take place after the United States Probation Office conducts pre-sentence investigations.
United States Attorney Edward J. Tarver said, “The number one priority of the United States Attorney’s Office is the protection of the citizens of the Southern District. Those who commit violent offenses in the Brunswick area by trafficking in guns, drugs and the fear of others can expect to have their operations relocated to a federal prison cell.”
All six cases were investigated by the Glynn/Brunswick Violent Crime Task Force, which consists of agents and officers from the ATF, the FBI, the Glynn County Police Department, the Brunswick Police Department, the Glynn County Sheriff’s Office, and the Georgia State Probation Office. The Task Force was formed in December 2012 to combat growing gun violence in Glynn County. Thus far, over 53 guns have been seized. Investigations are ongoing and further federal prosecutions are expected.
Assistant U.S. Attorneys Charlie Bourne and Shane Mayes prosecuted the cases on behalf of the United States. For additional information, please contact First Assistant United States Attorney James Durham at (912) 201-2547.
Edinburg Man Sentenced to Prison for CarjackingRead the Press Release
McALLEN, Texas – Erasmo Garza, 29, of Edinburg, has been sentenced to prison for carjacking, announced United States Attorney Kenneth Magidson.
Chief U.S. District Judge Ricardo Hinojosa sentenced Garza earlier today for his role in the carjacking that occurred in August 2012. Judge Hinojosa sentenced Garza to 51 months in federal prison to be followed by a two-year-term of supervised release. The Judge further ordered Garza to pay restitution in the amount of $2947.49.
Garza pleaded guilty on March 5, 2013, to carjacking - admitting he forced a woman, who was in the parking lot of a local restaurant, out of her Mercedes Benz. Garza, who had been involved in a high speed chase with local police officers, crashed his vehicle while attempting to elude authorities. He then ran across Texas Highway 83 and into the parking lot of the Macaroni Grill. Moments later, he forcibly removed the victim from her Mercedes and fled from police. Garza was arrested several days afterwards without incident.
Garza has been in federal custody without bond since January 2013, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future..
This investigation leading to the charges against Garza was conducted by FBI and FBI Safe Street Task Force with assistance from the McAllen Police Department. Assistant United States Attorney Leo J. Leo III prosecuted the case.
Dunkirk Man Pleads Guilty to Distribution and Possession of Child PornographyRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney Williams J. Hochul, Jr. announced today that Talbert Milton Mount, 52, of Dunkirk, N.Y., pleaded guilty to distribution of child pornography and possession of child pornography before U.S. District Court Judge Richard J. Arcara in Buffalo. The charges carry a maximum penalty of 120 years in prison.
Assistant U.S. Attorney Fauzia K. Mattingly, who is handling the case, stated that on June 14, 2012, a search warrant was executed at the defendant's residence. Agents found approximately 975 videos and over 12,770 images of child pornography on various computers and hard drives belonging to Mount. Some of the images depicted infants and toddlers. The defendant obtained and traded videos and images of child pornography over the internet. Mount was previously convicted of Corruption of a Minor of a Sexual Nature in Pennsylvania in 2010.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, Special Agent in Charge.
Sentencing is scheduled for February 5, 2014 at 1:00 p.m. before Judge Arcara.District Attorney Lisa Shepperd Zavogiannis Sworn in as Special Assistant United States AttorneyRead the Press Release
CHATTANOOGA, Tenn. -- Lisa Shepperd Zavogiannis, District Attorney General, 31st Judicial District, was sworn in as a Special U. S. Attorney (SAUSA) for the U.S. Attorney’s Office, Eastern District of Tennessee. The ceremony was held on Monday, Sept. 16, 2013, in U.S. District Court in Chattanooga by the Honorable William B. Mitchell Carter, U.S. Magistrate Judge.
She will continue to serve as District Attorney General for the 31st Judicial District. Her role as a SAUSA for the Eastern District of Tennessee, will allow her to assist the U.S. Attorney and Assistant U.S. Attorneys in specific federal cases.
In 2006, Ms. Zavogiannis became the first woman in the state of Tennessee to be elected District Attorney in her judicial district. She maintains a strong focus on the children in her district as an active promoter of anti-drug and teen parenting programs. She serves as the President of the Children’s Advocacy Center for the Thirty-First Judicial District, and has done so since 2006. She is active with the District Attorney Generals Conference serving on several committees, including the Executive, Legislative, Public Education and Child Support Committees.
The Honorable William C. Killian, United States Attorney for the Eastern District of Tennessee stated, “We are pleased to have Ms. Zavogiannis join our staff as a Special Assistant United States Attorney. This association allows us to continue and increase our cooperative efforts with the District Attorney General in the 31st Judicial District regarding violent crimes, drugs and human trafficking, and other areas of joint concern.”