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Tuesday 23 July 2013
Joseph Daniel Bahr, Jr. Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on July 22, 2013, before U.S. District Judge Donald W. Molloy, JOSEPH DANIEL BAHR, JR., a 42-year-old resident of Lame Deer and an enrolled member of the Northern Cheyenne Tribe, pled guilty to attempted sexual abuse. Sentencing has been set for October 23, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On June 23, 2011, the victim and a friend stayed overnight at BAHR's home in Lame Deer, which is within the boundaries of the Northern Cheyenne Indian Reservation. The victim, the friend, and BAHR were drinking that evening at BAHR's house. Between 10:00 p.m. and 11:00 p.m., the victim went to sleep in BAHR's daughter's bedroom. Around 5:00 a.m. the next morning, the victim woke up with BAHR on top of her. The victim told BAHR numerous times to stop and to get off of her. Eventually, the victim was able to push BAHR off of her, get dressed, and leave BAHR's residence. Before leaving, the victim confronted BAHR about the sexual assault in the presence of the friend who was also staying at BAHR's home. BAHR admitted to having sexual intercourse with the victim during this confrontation and this admission was overheard by the friend.
The victim then left the residence and went home. She told her husband about the sexual assault, immediately reported the assault to the police, and then went to the hospital for a sexual assault examination.
BAHR was interviewed by law enforcement and despite the admission made by BAHR to the victim and overheard by the friend at BAHR's house, when confronted by the victim, BAHR denied that he had sex with the victim.
BAHR faces possible penalties of life in prison, a $250,000 fine and lifetime supervision.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Jioio’s Restaurants Owner Pleads Guilty to Income Tax EvasionRead the Press Release
PITTSBURGH, Pa. - A resident of Greensburg, Pa., pleaded guilty in federal court to a charge of federal income tax evasion, United States Attorney David J. Hickton announced today.
Jeanean C. Smith pleaded guilty to one count before Senior United States District Judge Gustave Diamond.
In connection with the guilty plea, the court was advised that, as owner of Jioio's Restaurants in Latrobe and North Huntingdon, defendant engaged in the practice of "skimming" cash from restaurant sales, resulting in a total tax loss of $438,661 from the filing of false personal, corporate and payroll tax returns during the years 2006-2009.
Judge Diamond scheduled sentencing for Nov. 12, 2013 at 10:00 a.m. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court released the defendant on bond.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation conducted the investigation that led to the prosecution of Jeanean C. Smith.
Jersey County Man Convicted of $1.2 Million Dollar Tax Evasion and Unlawful Firearms PossessionRead the Press Release
A Jersey County resident pleaded guilty to felony charges of tax evasion and possession of a firearm by a user of controlled substances on July 23, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. David Ray, 54, of Fieldon, Illinois, waived his right to face a grand jury indictment and pled guilty to charges brought directly by the US Attorney’s Office.
Documents filed in District Court established that Ray committed tax evasion by using his various businesses to pay personal expenses, by vesting ownership of personal assets in the name of his businesses, and by filing false tax returns with the IRS or refusing to file a US Individual Tax Return all together. In tax years 2005-2010, Ray concealed income from the IRS for the purpose of limiting his tax liability resulting in him avoiding $1,272,904.83 in federal income taxes that he otherwise would have been required to pay. Ray agreed to make full restitution to the IRS as a condition of his guilty plea.
Ray was also convicted for possessing firearms while being a cocaine user. Evidence presented at the plea hearing established that federal agents seized 96 firearms and more than 2,500 rounds of ammunition from Ray’s home when it was searched on February 13, 2012. In addition, agents also seized 110 grams of cocaine from Ray’s home. Ray admitted possessing the firearms as a hunter and gun collector. But he also acknowledged a serious cocaine habit, admitting that he purchased and used 3-5 ounces of cocaine every 2-3 weeks prior to his home being raided. Under federal law, drug users are categorically prohibited from possessing firearms.
Tax evasion is punishable by not more than five years in prison, and/or a $100,000 fine, and not more than three years of supervised release. Possession of a firearm by a user of controlled substances is punishable by not more than 10 years in prison, and/or a $250,000 fine, or both, and not more than three years of supervised release. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Ray will be sentenced in US District Court on November 8, 2013.
US Attorney Wigginton said, “We will zealously pursue gun crimes wherever they occur. This case was unique because it is rare to see complicated white-collar tax crime alongside gun and drug offenses. This case is a model for how state and federal agencies should partner to successfully combat diverse criminal activity. I would like to personally thank each of the agencies for working tirelessly to ensure that this case was brought to justice.”
The investigation was conducted by agents from the Internal Revenue Service / Criminal Investigations, the Jersey County Sheriff’s Department, the Bureau of Alcohol Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Idaho Falls Man Charged with Possessing Child PornographyRead the Press Release
POCATELLO – Daniel Joseph Dalton, 37, of Idaho Falls, Idaho, was indicted today by a federal grand jury in Pocatello for possession of sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. An initial appearance has not been set.
The indictment alleges that on or about March 14, 2011, Dalton unlawfully and knowingly possessed visual depictions of minors engaging in sexually explicit conduct, on a desktop computer and two hard drives. The government is seeking forfeiture of the computer equipment used in the offense.
The charge of possessing sexually explicit images of minors is punishable by up to ten years in prison, a maximum fine of $250,000, and at least five years of supervised release.
The case is being investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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.”
Home Builder Sentenced to Prison for Mortgage Fraud CrimesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas-area homebuilder has been sentenced to 14 years in prison, five years of supervised release, and ordered to pay $4.4 million in restitution for selling houses at inflated prices in order to fraudulently obtain mortgage loans, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Paul Wagner, 59, was sentenced on Monday, July 22, 2013, by U.S. District Judge Miranda M. Du. Wagner was convicted by a jury in October 2012 of one count of conspiracy to commit bank fraud and wire fraud, six counts of bank fraud, and three count of wire fraud.
“Since the inception of our mortgage fraud program in the spring of 2008, over 200 persons have been charged with federal mortgage fraud crimes in Nevada,” said U.S. Attorney Bogden. “Most of those individuals were convicted and are in prison. Wagner is the first home builder to be charged and convicted.”
Wagner was a home builder in Las Vegas for 20 years, building tract homes in the northwest part of the Las Vegas valley. From about 2007 to 2009, Wagner created a scheme to provide large cash incentives to buyers, real estate agents and others to sell his homes. The incentives included Wagner paying buyers’ mortgage payments, making large cash payments to real estate agents and others to find buyers, and paying buyers’ down payments. To pay the incentives, Wagner inflated the value of the homes by causing appraisers to create false appraisals. Wagner concealed the incentives from the lenders, who would not have made the loans had they known about his methods. Using this fraudulent scheme, Wagner sold about 85 houses from March 2007 to mid-2009. Most of the homes went into foreclosure after Wagner stopped making the mortgage payments. The losses to the financial institutions were more than $18 million.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Daniel R. Schiess.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Herrin Man Sentenced for Child Pornography OffensesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that on July 23, 2013, Steven J. Perry, 38, of Herrin, Illinois, was sentenced for accessing child pornography images online. Perry had earlier pled guilty to accessing the child pornography on his computer. The District Court in Benton sentenced Perry to 24 months in prison, a $500 fine, and 10 years supervised release.
“As I have often said, people who access this filth are not simply perverts looking at dirty pictures. They are, in fact, people who aid and abet the ongoing abuse and exploitation of innocent children. Prison terms are well deserved by these people.” said United States Attorney Wigginton.
The evidence at sentencing established that Perry had accessed child pornography videos of children under the age of 10. Some of the child pornography videos Perry accessed also included a minor being subjected to sadistic conduct by their abuser.
The investigation in this case was conducted by the Secret Service Southern Illinois Cyber Crimes Task Force, and a number of state and local law enforcement agencies.
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 was prosecuted by Assistant United States Attorney Thomas E. Leggans.
Hamilton County Man Charged with Illegally Possessing A FirearmRead the Press Release
Sonny D. Southall, 28, of McLeansboro, Illinois, was arraigned today in United States District Court in Benton on an indictment charging him with being a felon in possession of a firearm, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on July 9th, alleged that Southall possessed a loaded 9 mm semi-automatic pistol in White County on June 2, 2013. Prior to that date, Southall had been convicted of two felony offenses, making it illegal under federal law for him to possess firearms or ammunition.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, Southall faces up to 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release to follow his incarceration. The firearm he illegally possessed is also subject to forfeiture to the United States.
Southall was remanded to the custody of the United States Marshal to await a detention hearing at which time it will be determined whether bond will be set or if he will be ordered held without bond. That hearing was scheduled for Friday, July 26th at 10:00 a.m. in Benton.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the White County Sheriff’s Department with the assistance of the Illinois State Police, the Enfield Police Department, and the Bureau of Alcohol, Tobacco, and Firearms.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Habersham County Woman Pleads Guilty to Making Pipe BombsRead the Press Release
GAINESVILLE, Ga. - Celia Alchemy Savage pleaded guilty in federal district court to making and possessing two pipe bombs found at her residence that were not registered in the National Firearms Registration and Transfer Registry, as is required by federal law.
“This defendant said she made and detonated pipe bombs as a hobby,” said United States Attorney Sally Quillian Yates. “Making bombs out of heavy metal pipe, explosive powder, and fuses is a serious crime, not a hobby, that carries significant penalties.”“The plea today is another reminder that ATF and our law enforcement partners will hold individuals accountable for any criminal behavior, especially that which threatens the safety of innocent civilians,” said ATF Special Agent in Charge Christopher Shaefer.
According to United States Attorney Yates, the charges and other information presented in court: Savage came to the attention of federal agents after a concerned citizen reported seeing what appeared to be explosive devices in Savage’s home. Federal agents applied for and received a search warrant to search Savage’s residence. When federal, state, and local agents executed the search warrant on May 30, 2012, they found two completed pipe bombs, firearms, small amounts of controlled substances, drug paraphernalia, and material to manufacture more explosive devices in a bedroom. Savage was present at her residence when the search warrant was executed. She admitted that she had previously manufactured approximately five to seven pipe bombs of various sizes at her residence. She described the bedroom where the pipe bombs, materials for making more explosive devices, drugs, and drug paraphernalia were found as her “lab.” She also stated that she knew that it was unlawful to manufacture explosive devices, but that she had a passion for it and considered manufacturing and detonating explosive devices to be her hobby.
Savage, 24, of Cornelia, Ga., was indicted on June 26, 2012, on one count of making two unregistered pipe bombs, one count of possessing two unregistered pipe bombs, and one count of being a prohibited person in possession of firearms. Today Savage pleaded guilty to making and possessing the pipe bombs. She could receive a maximum sentence of 20 years in prison and a fine of up to $500,000. In addition, she could be ordered to serve up to six years of supervised release after any term of imprisonment.
In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders. In the negotiated plea agreement filed in Court today the Government and the defendant agreed to jointly recommend a calculation of the Sentencing Guidelines that could result in an advisory Sentencing Guidelines range of 57-71 months of incarceration. However, Savage retains her right to advocate at her sentencing hearing for a sentence that is below the advisory Sentencing Guidelines range.
Sentencing will be scheduled before United States District Judge Richard W. Story after a pre-sentence report is prepared.
This case was investigated by Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation.
Assistant United States Attorney William L. McKinnon, Jr. is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Grand Jury Returns Indictment Charging Fourteen Individuals with Conspiracy to Distribute Spice, Money LaunderingRead the Press Release
Indictment follows arrests, search warrants in St. George last monthSALT LAKE CITY – A federal grand jury returned an indictment Tuesday charging 14 individuals with conspiracy to distribute spice in connection with a nationwide law enforcement operation targeting synthetic drug trafficking organizations. Nine defendants are also charged with money laundering in the indictment, which includes one conspiracy count and 10 counts of money laundering.
The indictment also includes a notice of intent to seek the forfeiture real property located in Hurricane, Heber City, and Spanish Fork; funds from several bank accounts; money orders; and vehicles.
Charged in the Utah indictment are Brian Merrill, age 28, of Hurricane; Joshua Davis, age 37, of Hurricane; Buck Andersen, age 33, of St. George; Joseph Givogre, age 42, of Washington; Gary Jolley, age 58, of St. George; Alicia Brandom, age 31, of Hurricane; Curtis McOsker, age 40, of Las Vegas, a former resident of Santa Clara; Malin Pavelka, age 34, of St. George; Jennifer Barlow, age 22, of St. George; Richard Lewis, age 61, of St. George; David Flores, age 32, of West Jordan; James Hardwick, age 27, of South Jordan; David Carter, age 33, of Spanish Fork; and Becky Young, age 36, of West Jordan.
The Utah case is a part of “Project Synergy,” a national initiative which includes cases led by DEA, U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI); IRS-Criminal Investigation; and the FBI. The operation was announced in late June.
The investigation in Utah started when Illinois law enforcement officers, conducting a Spice investigation connected to a chain of smoke shops, found 9,644 packets of Spice which appeared to have been shipped to Illinois from St. George. The Spice packets were marketed under brands called “Gods of Spice” and “Blue Heaven.” Based on the information from Illinois officials, federal, state, and local law enforcement agencies in the St. George area, including the DEA, IRS-Criminal Investigation, HSI, BLM, the Washington County Drug Task Force, the Washington County Sheriff’s Office, the St. George Police Department, and the Hurricane Police Department launched an investigation.
Independent of the investigation launched by the information from Illinois, HSI agents seized two packages of Spice chemicals coming into the country to co-conspirators in the case, including a shipment from China.
The indictment alleges that from about March 2011 through about June 2013, the defendants conspired with each other and with other persons to distribute spice. The money laundering counts charge several of the defendants with engaging in monetary transactions involving property derived from an unlawful activity – which in this case is conspiracy to unlawfully distribute a controlled substance.
Davis, Carter, Givogre, and Flores are in custody. Andersen, Hardwick, and Jolley have been in custody since their arrest, but were released following a detention hearing Monday afternoon. Merrill, Brandom, Pavelka, Barlow, Lewis, and Young were released on conditions of supervised release following their arrest last month. McOsker has not been arrested.
Defendants in the case are scheduled for an arraignment on the indictment on Aug. 5, 2013, at 1:30 p.m. before U.S. Magistrate Judge Robert T. Braithwaite in St. George. The potential maximum penalty for the conspiracy count is 20 years in federal prison and a fine of $1 million. Each count of money laundering carries a potential 10-year penalty and a fine of $250,000.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Government Seizes Dietary Supplements Containing Unsafe Food Additive in Three StatesRead the Press Release
The Department of Justice has favorably resolved three actions it filed in Arizona, Pennsylvania and South Carolina, to seize and condemn dietary supplements containing the unsafe food additive 1,3-dimethylamylamine, commonly known as DMAA, an amphetamine-like stimulant that has been linked to at least 86 adverse health events. According to the U.S. Food and Drug Administration (FDA) and federal law, the sale of DMAA in interstate commerce is illegal, and consumers should not buy or use dietary supplements containing DMAA.
“Although DMAA is sometimes found in seemingly ordinary, over-the-counter dietary supplements, it has been linked to serious health problems,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. “The FDA and the Department of Justice are dedicated to protecting Americans by getting products containing DMAA off the shelves.”
In June, in coordination with the FDA, the U.S. Attorney’s Office for the Western District of Pennsylvania, the U.S. Attorney’s Office for the District of South Carolina and the Department of Justice’s Consumer Protection Branch filed actions in Pittsburgh; Anderson, S.C.; and Phoenix, to seize and condemn three caches of DMAA-containing products, located in warehouses owned by General Nutrition Centers Inc. (GNC). After the seizure actions were filed, GNC voluntarily agreed to destroy all DMAA-containing products remaining at the three warehouses. Subsequently, FDA personnel witnessed the destruction of DMAA-containing products located in the Pennsylvania and Arizona warehouses, and the FDA has made arrangements to witness the destruction of these products in the South Carolina warehouse. As a result of these efforts, the government has dismissed all three seizure actions.
In a related matter, the manufacturer of the dietary supplements containing DMAA, Dallas-based USPlabs LLC, recently destroyed all DMAA-containing products in its possession. USPlabs, along with at least 10 other manufacturers of DMAA-containing products, has agreed to stop producing products containing DMAA.
The Department of Defense maintains a list of products containing DMAA that may still be in the marketplace. The list is available at http://hprc-online.org/dietary-supplements/files/DMAA_List.pdf.Four Defendants Charged in Federal Court for Participating in Nationwide Timeshare Telemarketing Fraud SchemeRead the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin announced that earlier today, a federal grand jury returned indictments against Mark S. Parks (age: 39) of Denmark, Wisconsin, Mindy L. Parks (age: 34) of Denmark, Wisconsin, Ashley M. Conant (age: 28) of Green Bay, Wisconsin, and Eileen M. Goltz (age: 51) of Port Charlotte, Florida, charging each of them with one count of Conspiracy to Commit Mail and Wire Fraud.
Each defendant faces up to twenty years’ imprisonment, a fine of up to $250,000, a $100 special assessment, and up to three years of supervised release. In addition, pursuant to the “Senior Citizens Against Marketing Scams” or SCAMS Act, if the United States proves that at least ten individuals over age 55 were victimized as a result of the conspirators’ telemarketing efforts, each defendant could face an enhanced penalty of up to ten years’ imprisonment (added to the underlying sentence for the conspiracy to defraud).
According to a criminal complaint previously filed in the case, the defendants operated a fraudulent timeshare resale scheme in Green Bay, Wisconsin, which resulted in over a thousand victims in all fifty states and Canada being defrauded of over $2,300,000. The defendants operated from 2007 to 2011 under several different names, including: Integrated Advertising Solutions, National Timeshare Resales, Administrative Timeshare Resales, and Midwest Timeshares. Victims were told that interested buyers were prepared to purchase their existing timeshares in exchange for upfront “administrative fees” ranging from a few hundred dollars to a few thousand dollars depending on how much the telemarketers believed they could collect. According to the complaint, many of the victims are elderly and had previously been victimized by similar schemes.
This case was a joint investigation by the Federal Bureau of Investigation and the U.S. Postal Inspection Service with assistance of the Brown County Sheriff’s Office, the Door County Sheriff’s Office, the Waupaca County Sheriff’s Office, the Better Business Bureau, and the Wisconsin Department of Agriculture Trade and Consumer Protection. The case is being prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove each of them guilty beyond a reasonable doubt.
Fort Thompson Man Charged with Felon in Possession of FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury.
Bryant James Ross, age 39, was indicted by a federal grand jury on July 17, 2013, for Felon in Possession of Firearm. Ross appeared before U.S. Magistrate Judge Mark A. Moreno on July 19, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release, an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Ross is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Ross was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.Former University of rochester employee pleads guilty to fraudRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Debra Bulter pleaded guilty to conspiracy to commit mail fraud and to money laundering before U.S. District Judge Frank P. Geraci, Jr. Conspiracy carries a maximum sentence of 20 years in prison and a fine of $250,000. Money laundering carries a maximum sentence of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that the defendant worked as the Program Administrator for the Department of Anesthesiology at the University of Rochester in Rochester. The Department of Anesthesiology provides anesthesia services to patients undergoing surgery or other procedures at Strong Memorial Hospital, Highland Hospital and other medical facilities in Rochester. A physician, known as the Chair, oversees the Anesthesiology Department's management and operations. The Program Administrator oversees administrative duties and reports to the Chair.
From 2001 through 2012, an anesthesia medical group, the “Anesthesia Medical Group,” contracted with the Department of Anesthesiology to provide anesthesiologists at medical facilities served by the Department of Anesthesiology. Between 2003 to 2008, two doctors (the “two Group doctors”) from the Anesthesia Medical Group individually contracted with the Department of Anesthesiology purportedly to provide additional administrative services to the Department of Anesthesiology.
From 2007 through 2012, the defendant participated in several schemes to defraud the Department of Anesthesiology and the Anesthesiology Medical Group. One scheme involved deceiving the Department of Anesthesiology from 2007 to 2009 into making fraudulent payments to the two Group doctors and the Anesthesia Medical Group. The Department of Anesthesiology was provided fraudulent documents, including fraudulent requisition forms and invoices, which made it appear that the two Group doctors and the Anesthesia Medical Group had provided adequate services to the Department of Anesthesiology for such payments. As a result of the fraudulent documents, the Department of Anesthesiology was deceived into paying the two Group doctors $930,000 and the Anesthesia Medical Group $530,000 to which they were not entitled. To compensate the defendant for her participation in the scheme, the Anesthesia Medical Group was deceived into paying the fraudulent money it received from the Department of Anesthesiology to a business started by the defendant, DJA Solutions, Inc.
From January 2010 to September 2012, the Department of Anesthesiology and the Anesthesia Medical Group were deceived into causing a large portion of the compensation earned by the Anesthesia Medical Group from the Department of Anesthesiology to be diverted to the two Group doctors. As a part of the scheme, the two Group doctors each executed fraudulent contracts with the Department of Anesthesiology for the fiscal years 2010 through 2013 which stated that they intended to provide additional administrative services to the Department of Anesthesiology worth more than $3,000,000. These contracts were improperly signed by the defendant on behalf of the Department of Anesthesiology and concealed from the Chair of the Department of Anesthesiology and the other anesthesiologists at the Anesthesia Medical Group. The two Group doctors also caused invoices in their own names to be submitted to the Department of Anesthesiology which falsely represented that they had provided the services listed on such invoices. The scheme caused the Department of Anesthesiology to divert compensation actually earned by the Anesthesia Medical Group to the two Group doctors in the total amount of $1,909,156. To compensate the defendant for her role in this scheme, the Anesthesia Medical Group was deceived into to paying the defendant’s business, DJA Solutions, LLC, more than it was entitled. For the years 2010 through 2012, DJA Solutions, LLC received $1,169,606 from the Anesthesia Medical Group.
Another of the defendant's schemes involved causing the Department of Anesthesiology to make a fraudulent and unauthorized loan to a doctor working for the Department of Anesthesiology. The defendant disguised various payments to the doctor as extra compensation earned by the doctor. The defendant did this by preparing fraudulent payroll documents, which were submitted to the Chair of the Department of Anesthesiology for authorization to pay the extra compensation to the doctor. The Chair signed such forms believing that the doctor was entitled to such extra compensation and was unaware that such payments were actually an improper loan to the doctor. The total amount of the fraudulent payments to the doctor was $510,726.
From October 2012 to May 2012, the defendant also caused the Department of Anesthesiology to pay a former employee of the Department of Anesthesiology $7,168 by disguising the payments as compensation earned by the former employee, when in fact, the former employee was no longer working for the Department of Anesthesiology.
Finally, from March 2009 to June 2012, the defendant submitted expense reimbursement forms totaling $13,097.67 to the Department of Anesthesiology for expenses which she either had already been reimbursed for or were not actual business expenses.
"In a scheme such as this, American taxpayers are defrauded twice," said U.S. Attorney Hochul. "They are defrauded a first time when medicare and medicaid funding is misspent and a second time when private insurance companies are impacted which could ultimately lead to higher premiums. This case serves as an example of the need for checks and balances in any organization. All employees, even those considered to be trusted individuals, need to have their work reviewed by another person."
The plea is the culmination of an joint investigation on the part of the United States Postal Inspection Service, under the direction of Kevin Niland, Inspector in Charge, Boston Division, United States Postal Inspection Service, and the Internal Revenue Service, under the direction of Toni M. Weirauch, Special Agent-In-Charge, New York Field Office.
The defendant is scheduled to be sentenced on November 21, 2013 at 9:30 a.m.
Former Senior Executive of ArthroCare Corp. Pleads<br /> Guilty in $400 Million Securities Fraud SchemeRead the Press Release
A former senior executive of ArthroCare Corp., a publicly traded medical device company based in Austin, Texas, pleaded guilty for his role in a scheme to defraud the company’s shareholders and members of the investing public by falsely inflating ArthroCare’s earnings, announced Acting Assistant Attorney Mythili Raman of the Department of Justice’s Criminal Division and U.S. Attorney Robert Pitman of the Western District of Texas. The plea was taken under seal on June 24, 2013, and unsealed late yesterday.
John Raffle, 45, of Austin, pleaded guilty before U.S. Magistrate Judge Mark Lane in Austin to conspiracy to commit securities, mail and wire fraud and two false statements violations. Raffle was the senior vice president of Strategic Business Units at ArthroCare, overseeing all sales and marketing staff at the company. Raffle admitted that he and other co-conspirators falsely inflated ArthroCare’s sales and revenue through a series of end-of-quarter transactions involving ArthroCare’s distributors and that he and other co-conspirators caused ArthroCare to file a Form 10-K for 2007 and Form 10-Q for the first quarter of 2008 with the U.S. Securities and Exchange Commission that materially misrepresented ArthroCare’s quarterly and annual sales, revenues, expenses and earnings. As part of his plea, Raffle agreed that his conduct and the conduct of his co-conspirators caused more than $400 million in losses to shareholders.
According to court documents, Raffle and others determined the type and amount of product to be shipped to distributors – notably ArthroCare’s largest distributor, DiscoCare Inc. – based on ArthroCare’s need to meet sales forecasts, rather than the distributors’ actual orders. Raffle and others then caused ArthroCare to “park” millions of dollars worth of ArthroCare’s medical devices at its distributors at the end of each relevant quarter. ArthroCare would then report these shipments as sales in its quarterly and annual filings at the time of the shipment, enabling the company to meet or exceed internal and external earnings forecasts.
According to the superseding information, DiscoCare agreed to accept shipment of approximately $37 million of product in exchange for substantial, upfront cash commissions, extended payment terms and the ability to return product, as well as other special conditions, allowing ArthroCare to falsely inflate its revenue by tens of millions of dollars. To conceal the fact that DiscoCare owed ArthroCare a substantial amount of money on the unused inventory, Raffle and others caused ArthroCare to acquire DiscoCare on Dec. 31, 2007.
According to court documents, between December 2005 and December 2008, ArthroCare’s shareholders held more than 25 million shares of ArthroCare stock. On July 21, 2008, after ArthroCare announced publicly that it would be restating its previously reported financial results from the third quarter 2006 through the first quarter 2008 to reflect the results of an internal investigation, the price of ArthroCare shares dropped from $40.03 to $23.21 per share. The drop in ArthroCare’s share price caused an immediate loss in shareholder value of more than $400 million.
Raffle faces a maximum prison sentence of five years in prison for each charge. A sentencing date has yet to be scheduled. Raffle’s co-defendant David Applegate pleaded guilty on May 9, 2013. ArthroCare’s Chief Executive Officer, Michael Baker, and Chief Financial Officer, Michael Gluk, were indicted as part of the same alleged securities fraud scheme on July 16, 2013. An indictment is merely a charge, and the defendants are presumed innocent until proven guilty.
This case was investigated by the FBI’s Austin office. The case is being prosecuted by Deputy Chief Benjamin D. Singer and Trial Attorneys Henry P. Van Dyck and William Chang of the Criminal Division’s Fraud Section. The Department recognizes the substantial assistance of the U.S. Securities and Exchange Commission.
Former National Guard Transportation Officer Pleads Guilty to Accepting an Illegal GratuityRead the Press Release
Officer Awarded Contracts to Freight Shipper in Return for Cash and Plane Tickets
ATLANTA - Keith Glenn, a former Installation Transportation Officer for the Georgia Army National Guard, pleaded guilty to one count of accepting an illegal gratuity for accepting cash and other benefits from a private freight shipper to whom he awarded contracts to transport military equipment.
United States Attorney Sally Quillian Yates said, “This defendant was responsible for ensuring that contracts to move Georgia Army National Guard military equipment were awarded in compliance with federal rules and regulations. He personally profited from his position by accepting cash and gifts from a freight shipper and will now be held accountable for breaking the law and the public trust.”
“We are fully committed to tirelessly pursuing all those who knowingly attempt to defraud the government or accept bribes with respect to military contracts, particularly while we at war,” said Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “Our commitment is to ensure taxpayer dollars are not wasted or stolen and we will continue to fully investigate those who think they are above the law. During the last 10 years alone, Army CID Special Agents have been instrumental in recovering and returning millions of dollars to the Treasury and the Army from fraudulent practices involving contractors.”
According to United States Attorney Yates, the charges and other information presented in court: In 2008, Glenn became the Installation Transportation Officer for the Georgia Army National Guard (the “Guard”) facility located on Confederate Avenue in Atlanta. As the Installation Transportation Officer, Glenn was a federal employee working in the United States Property and Fiscal Office (“USPFO”). The USPFO is the primary focal point for federal funds and property allotted to the Guard. The Transportation Office of the USPFO is responsible for the award and oversight of all commercial transportation contracts (paid with federal funds) for the movement of Guard equipment and personnel. Glenn’s responsibilities included supervising the Transportation Office’s day-to-day operations and awarding contracts to private freight carriers for Guard freight shipments.
In March 2008, soon after he began working in the USPFO Transportation Office, Glenn met an individual who owned and controlled multiple companies in the freight shipping or brokerage business. Several months later, the USPFO Transportation Office began awarding business to that individual’s companies to ship Guard equipment and freight. Glenn selected the individual’s companies and awarded them shipment contracts to move Guard equipment and freight.
In making these selections, Glenn violated federal rules and regulations governing the selection of freight carriers and the process for awarding freight contracts. Glenn accepted cash and other personal benefits, including plane tickets, from that individual for or because of the contracts he awarded to the individual’s companies. On one occasion, the individual placed $5,000 in cash in Glenn’s car while meeting him at a local restaurant. Shortly before this payment, Glenn awarded multiple shipping contracts to the individual’s companies.
On June 4, 2013, Glenn, 48, of Lilburn, Georgia, was charged in a Criminal Information with one count of accepting an illegal gratuity. Today he pleaded guilty to the information and could receive a maximum sentence of two years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Sentencing is scheduled for September 27, 2013, at 9:30 a.m. before United States District Judge William S. Duffey, Jr.
This case is being investigated by the United States Army Criminal Investigation Command.
Assistant United States Attorney Doug Gilfillan is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Former Indian Point Supervisor Charged in White Plains Federal Court with Falsifying Records to Conceal Information from the Nuclear Regulatory CommissionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that DANIEL WILSON, a former supervisor at Indian Point Energy Center (“Indian Point”), a nuclear power plant in Westchester County, was charged in a criminal Complaint (the “Complaint”) with engaging in deliberate misconduct in violation of rules of the Nuclear Regulatory Commission (“NRC”), making false statements in connection with a matter within the jurisdiction of the NRC, and fabricating records to conceal a violation of NRC requirements at the facility. This Complaint was based on the results of an investigation by the NRC’s Office of Investigations, led by Director Cheryl McCrary. WILSON was arrested today on the charges in the Complaint and was presented before United States Magistrate Judge Paul E. Davison in the White Plains federal courthouse, who ordered him released on bail conditions.
U.S. Attorney Preet Bharara stated: "Any alleged deliberate misconduct at a facility like Indian Point is a matter of grave concern to this Office. One need look no further than recent natural disasters to know that at important facilities, backup generators and other systems must be maintained in working order because in an emergency they may be critical."
NRC Region I Administrator Bill Dean stated: “The NRC relies on nuclear power plant employees to behave in a responsible and trustworthy manner. When it comes to ensuring the operability of a plant's emergency diesel generators, or any other vital nuclear safety equipment, there can be no room for anything other than employees adhering to the highest standards of integrity. In coordination with the Department of Justice, the NRC will move forward with any civil enforcement action in this matter."
As charged in the Complaint, Indian Point must comply with technical specifications; otherwise Indian Point may be required to shut down until it complies. Indian Point maintains a backup system of emergency generators for use in part to provide power in the event of a power outage and shutdown. WILSON, the Chemistry Manager at Indian Point from 2007 through 2012, was responsible for, among other things, ensuring that certain aspects of the operation at Indian Point were in compliance with the required technical specifications. One such requirement regards the amount of particulate matter in the diesel fuel used to power emergency generators at Indian Point, which must not exceed a set limit. In 2011, tests of the diesel fuel maintained for use in powering the emergency generators at Indian Point showed that the ratio of particulate matter in the diesel fuel exceeded the limit set by the NRC.
In February 2012, WILSON concealed material facts from his employer and the NRC by fabricating test data for non-existent resamples of the diesel fuel, falsely showing that the resamples of diesel fuel tested below the applicable NRC limit. In fact, no such resamples were taken, and the purported test data were fabrications. Later in February 2012, WILSON, in response to questioning by other employees of Indian Point in advance of an inspection by the NRC, wrote a report – the kind on which the NRC ordinarily relies in inspecting nuclear facilities for safety – in which he gave a false explanation for the lack of supporting documentation for his fabricated test results. In a subsequent interview with NRC personnel, WILSON admitted that he had fabricated the test results so that Indian Point would not have to shut down.
WILSON, 57, of Walden, New York, is charged in a two-count Complaint with willfully violating rules of the NRC by engaging in deliberate misconduct, in violation of Title 42, United States Code, Section 2273, and with making false statements in a matter within the jurisdiction of the NRC, in violation of Title 18, United States Code, Section 1001. If convicted, WILSON faces a maximum sentence of seven years in prison.
Mr. Bharara praised the efforts of the NRC Office of Investigations in connection with this investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Benjamin Allee is in charge of the prosecution.
The charges in the Complaint are merely accusations, and the defendant is presumed innocent until and unless proven guilty.
WilsonDaniel.Complaint
WilsonDaniel.ComplaintFormer Bay Area Resident Pleads Guilty to Conspiracy to File False Claims for Tax RefundsRead the Press Release
SAN FRANCISCO, Calif. – Charmetra Urssery pleaded guilty yesterday to conspiracy to file a false tax returns, United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez, announced.
According to the plea agreement, beginning in June 2008, Urssery engaged in a scheme to obtain fraudulent tax refunds. As part of her role in the scheme, Urssery gathered identities to use in false tax return filings that were submitted to the Internal Revenue Service (IRS). Urssery also used her bank account number to receive the fraudulent tax payments. When Urssery withdrew the money from her own bank account, she and others in the conspiracy would split the proceeds from the scheme. As part of her plea, Urssery agreed to repay $196,766 to the United States Treasury.
Urssery, 36, of Sacramento, was indicted on July 12, 2012. She pleaded guilty to the single charge in the Indictment – Conspiracy to File False Claims, in violation of 18 U.S.C § 286.
Urssery is scheduled to be sentenced on November 13, 2013. Urssery was charged along with Angela Pellette, who pleaded guilty to conspiracy to file false tax returns on June 12, 2013, and agreed to repay the United States $197,659. Pellette is scheduled for sentencing on September 18, 2013.
The maximum statutory penalty for each count of conspiracy to file false claim, in violation of 18 U.S.C § 286, is ten years in prison and a fine of $250,000. However, any sentence will be imposed by the court only after consideration of the U.S. sentencing guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Thomas Newman is the Assistant U.S. Attorney who is prosecuting this case. The prosecution is the result of an investigation by the IRS-CI.
Florida Man, Roger Brent Churchwell, Charged with Crimes Involving the Sexual Exploitation of ChildrenRead the Press Release
ROGER BRENT CHURCHWELL, age 58, of Vero Beach, Florida, was charged in a one-count bill of information today for crimes involving the sexual exploitation of children, announced United States Attorney Dana J. Boente.
If convicted, CHURHCWELL faces a mandatory minimum of five years, and a maximum of twenty years in prison, followed by up to a life term of supervised release, and a $250,000 fine. CHURCHWELL can also be required to register as a sex offender.
United States Attorney Boente reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by special agents from the Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant United States Attorney Jordan Ginsberg.
(Download Bill of Information )
Florida Man Sentenced for Selling Counterfeit GoodsRead the Press Release
United States Attorney Brendan V. Johnson announced that an Ormand Beach, Florida, man convicted of Trafficking in Counterfeit Goods or Services was sentenced on July 18, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Nir Giist, age 55, was sentenced to one year of probation, ordered to pay a $10,000 fine, and $70,000 in restitution to the victims, which include Monster Energy, The North Face, American Eagle, and Rovio Entertainment (Angry Birds.) Giist also owes $100 to the Federal Crime Victims Fund.
Between February 2010 and August 2011, Giist intentionally sold counterfeit, wearable items through a corporation named Sturgis Black Hills Rally S.D., LLC. Through that corporation, Giist and others owned or leased seven stores in the Black Hills where they sold counterfeit products, as well as legitimate products. The sale of the counterfeit goods, such as t-shirts, hats, pants, shorts, and other wearable items, were deliberately designed and marketed to deceive consumers, and violated the trademarks held by the victims.
“This case serves as a timely reminder that with an event the magnitude of the upcoming Sturgis Motorcycle Rally, there is an increased chance of counterfeit goods being sold or counterfeit money being used. I urge the public to be aware, and if there is a suspicion of counterfeit trafficking, they should contact law enforcement authorities immediately,” cautioned Johnson.
U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) will have special agents on hand at the 2013 Sturgis Motorcycle Rally to investigate allegations of illegal counterfeiting of trademark items.
"HSI takes violations of copyright and trademark laws seriously," said Eugene Paulauskas, acting deputy special agent in charge of HSI St. Paul, which covers South Dakota. “We will continue to pursue criminals who break these laws at events such as these in order to protect the public's health and safety.”
This case was investigated by HSI. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.Executive Recycling Company and Executives Sentenced for Fraud and International Environmental CrimesRead the Press Release
DENVER – Executive Recycling, Inc. (a corporation) and Brandon Richter, age38, of Highlands Ranch, Colorado, the owner and chief executive officer of Executive Recycling, were sentenced today by U.S. District Court Judge William J. Martinez for their roles in a fraudulent scheme related to the disposal and exportation of electronic waste to foreign countries, announced United States Attorney John Walsh, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Kumar Kibble and EPA Criminal Investigation Division Special Agent in Charge Jeffrey Martinez. Executive Recycling, the corporation, was sentenced to pay a $4,500,000 fine and serve 3 years on probation. Richter was ordered to serve 30 months in federal prison, followed by 3 years on supervised release. Judge Martinez also ordered Richter to pay a $7,500 fine and $70,144 in restitution joint and several with the victims of the crime. Richter was ordered to report to a Bureau of Prisons facility within 15 days of designation. Judge Martinez also ordered $142,241.10 in asset forfeiture.
The defendants were convicted in December 2012 of multiple counts of mail and wire fraud and environmental crimes related to the illegal disposal of electronic waste, smuggling, and obstruction of justice, following an 11-day trial.
Last week former vice president of operations, Tor Olson, age38, of Parker, Colorado, was sentenced to serve 14 months in prison, pay a $5,000 fine, and pay over $15,000 in restitution. Olson remains free on bond pending appeal.
Executive Recycling, Inc., as a corporation, Brandon Richter and Tor Olson were indicted by a federal grand jury in Denver on September 15, 2011. The jury trial before Judge Martinez began on December 3, 2012. The jury reached their verdict on December 21, 2012. Olson was sentenced on July 17, 2013.
According to the indictment, as well as the facts presented at trial, Executive Recycling was an electronic waste recycling business located in Englewood, Colorado with affiliated locations in Utah and Nebraska. The company collected electronic waste from private households, businesses, and government entities. Executive Recycling was registered with the Colorado Department of Public Health and Environment as a “Large Quantity Handler of Universal Waste.” Richter, as owner and CEO, was responsible for supervising all aspects of the company. Olson, the vice president of operations, was responsible for running day-to-day operations.
A significant portion of electronic waste collected by the defendants were Cathode Ray Tubes (CRTs). CRTs are the glass video display component of an electronic device, usually a computer or television monitor, and are known to contain lead. The defendants engaged in the practice of exporting electronic waste, including CRTs, from the United States to foreign countries, including the People’s Republic of China. The defendants regularly negotiated the sale of electronic waste to brokers who represented foreign buyers or who sold the electronic waste overseas. The foreign buyers often paid the defendants directly. To transport the electronic waste, the defendants used shipping cargo containers which were loaded at the company’s facility. The containers were then transported by rail to domestic ports for export overseas.
Executive Recycling appeared as the exporter of record in over 300 exports from the United States between 2005 and 2008. Approximately 160 of these exported cargo containers contained a total of more than 100,000 CRTs.
Between February 2005 and continuing through January 2009, the defendants knowingly devised and intended to devise a scheme to defraud various business and government entities who wanted to dispose of their electronic waste, and to obtain these business and government entities’ money by means of materially false and fraudulent pretenses. The defendants represented themselves on a website to have “extensive knowledge of current EPA requirements.” The defendants falsely advertised to customers that they would dispose of electronic waste in compliance with all local, state and federal laws and regulations. It was part of the scheme that the defendants falsely represented that they would dispose of all electronic waste, whether hazardous or not, in an environmentally friendly manner. Specifically, the defendants falsely represented that the defendant company recycled electronic waste “properly, right here in the U.S.” They also stated that they would not send the electronic waste overseas.
The defendants’ misrepresentation induced customers to enter into contracts or agreements with the defendants for electronic waste disposal. Each victim paid the defendants to recycle their electronic waste in accordance with the representations made by the defendants. Contrary to their representations, the defendants sold the electronic waste they received from customers to brokers for export overseas to the People’s Republic of China and other countries.
“The defendants in this case not only caused actual harm to the environment by shipping electronic waste overseas for dumping, they defrauded their customers by falsely claiming to be disposing of that waste in an environmentally safe way,” said U.S. Attorney John Walsh. “As cases like this one show, federal investigators and the U.S. Attorney’s Office can and will reach beyond our country’s borders to investigate crime and prosecute wrongdoers.”
“This prison sentence and fine awarded to this CEO demonstrate that there are no shortcuts to following U.S. export laws,” said Kumar Kibble, special agent in charge of HSI Denver. “This CEO also intentionally deceived the public for years by falsely advertising an environmentally friendly recycling business plan within the United States. Instead, he regularly exported tons of obsolete and discarded electronic equipment containing toxic materials to third-world countries, and took actions to illegally hide these practices from government officials.”
“The defendants claimed to safely recycle e-waste in the U.S., but regularly exported obsolete and discarded electronic equipment with toxic materials to third-world countries,” said Jeff Martinez, Special Agent in Charge of EPA’s criminal enforcement office in Colorado. “Pollution and greed respect no boundaries and EPA is committed to combating the illegal traffic of e-waste, which poses particularly significant environmental health risks in developing countries.”
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Environmental Protection Agency Criminal Investigation Division and the Colorado Attorney General’s Office, Special Prosecutions Unit.
The defendants were prosecuted by Assistant U.S. Attorneys Suneeta Hazra and Valeria Spencer and Special Assistant U.S. Attorney Lillian Alves.
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Drug Trafficker Sentenced to 168 Months in PrisonRead the Press Release
EUGENE, Ore. – Juan Jesus Chavez-Salazar, 26, of Lane County, Oregon, was sentenced today by Chief District Judge Ann Aiken to 168 months in prison for conspiracy to possess and distribute methamphetamine. Upon his release from prison, defendant will be on supervised release for five years.
Defendant and his associates were the target of a long-term federal and state drug investigation. Beginning in June 2010, law enforcement conducted multiple purchases of methamphetamine from an individual who was acting as a courier for defendant. A stash house in Springfield, Oregon was identified, and it appeared that the residence was being used to receive and store drugs. After significant investigation and surveillance, law enforcement identified vehicles which regularly appeared at the stash house and they attempted to locate and stop one of the vehicles.
On March 28, 2011, a vehicle driven by Rafael Soto-Mendoza was stopped near Roseburg Oregon. The vehicle, which had previously been observed at the stash house, was searched. Two pounds of methamphetamine and a loaded .45 caliber pistol were located in a hidden compartment in the dash.
Two days later, on March 30, 2011, Octavio Mendoza-Diaz and Marlo Gonzalez-Meza arrived at the stash house. They had not previously been seen during this investigation and law enforcement suspected that they were transporting methamphetamine to the stash house.
On March 31, 2011, Gonzalez-Meza was stopped after he left the stash house. His vehicle was searched and $20,000 was located in a hidden compartment. Mendoza-Diaz was stopped in a separate vehicle and a drug dog alerted to his dash board which showed signs of having been removed and replaced. Chavez-Salazar was driving a third vehicle with Uriel Hernandez-Naranjo as a passenger, and he rapidly drove away from officers when they tried to stop him. An agent searched the ground in the area where Chavez-Salazar had driven and located methamphetamine.
A search of the stash house revealed 263 grams of methamphetamine, $25,269 in currency, large amounts of wrapping material, a pistol and a shotgun with a sawed-off stock. The defendants were arrested and charged in federal court.
Several of Chavez-Salazar’s co-defendants have been convicted and sentenced as follows: Rafael Soto-Mendoza was convicted of possession with intent to distribute methamphetamine on May 22, 2012, and sentenced to 87 months in prison; Octavio Mendoza-Diaz was convicted of conspiracy to distribute methamphetamine and sentenced to 60 months in prison; and, Uriel Hernandez-Naranjo was convicted of conspiracy to distribute methamphetamine on October 16, 2012, and sentenced to 33 months in prison. Co-defendant Marlo Gonzalez-Meza has pled guilty to conspiracy to distribute methamphetamine and is set for sentencing.
This case was investigated by the Drug Enforcement Administration, Immigration and Customs Enforcement, the Interagency Narcotics Team and the Oregon State Police, and was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.
Drug Dealer Sentenced to 17 1/2 Years in Jail for His Participation in A Conspiracy to Import DrugsRead the Press Release
Vessels, vehicles, and real estate property forfeitedSAN JUAN, P.R. – Yesterday evening, defendant Nick Irizarry-Rosado, was sentenced by United States District Court Judge José A. Fusté to serve a term of imprisonment of 17 ½ years for his participation in a conspiracy to import narcotics into Puerto Rico, announced today Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The judge also ordered the forfeiture of multiple vessels, vehicles, and other assets named in the Indictment, as well as a parcel of land and house in La Parguera, Lajas, PR owned by Irizarry-Rosado.
Irizarry-Rosado was one of thirteen individuals accused of conspiring to import multi-kilograms amounts of cocaine from the Dominican Republic and other places abroad into Puerto Rico on board of motor vessels. The evidence obtained in this case showed that Irizarry-Rosado and other members of the drug trafficking organization would purchase motor vessels, to include a Wellcraft 33 feet and Bertram 46 feet to be used in the transportation of the narcotics by members of the conspiracy. They would pay in cash for the purchase of such vessels and would arrange for the preparation of hidden compartments in the vessels to be used in the transportation of the narcotics by members of the conspiracy. Once the narcotics were transported into Puerto Rico, some of the narcotics would be resold in Puerto Rico and some would be further transported to the continental United States for eventual resale.
The evidence against the drug trafficking organization included photographs, audio and video recordings. Nine of the thirteen defendants, including Irizarry-Rosado pleaded guilty. The two defendants who went to trial were convicted and are waiting to be sentenced. They are facing sentences ranging from 10 years to life. There is a defendant pending to be extradited from the Dominican Republic and another that is still pending trial.
The case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and prosecuted by Assistant United States Attorney Carlos R. Cardona.
District Man Sentenced to Four Years in Prison for Attempted Sexual Assault-Defendant Lured Victim into His Car by Offering A Ride Home-Read the Press Release
WASHINGTON – Ronnie Moore, 48, of Washington, D.C., was sentenced today to four years in prison on charges stemming from an incident in which he lured a woman into his car and then tried to sexually assault her, announced U.S. Attorney Ronald C. Machen Jr.
Moore pled guilty in May 2013 in the Superior Court of the District of Columbia to charges of assault with intent to commit first-degree sexual abuse and felony threats. He was sentenced by the Honorable Ronna L. Beck. As a result of the plea, Moore must register as a sex offender for the rest of his life. Upon completion of his prison term, Moore will be placed on 10 years of supervised release.
According to the government’s evidence, on March 10, 2012, at about 10 a.m., Moore was driving a car at the intersection of Branch and Pennsylvania Avenues SE. The victim, then 19, was standing at a bus stop at that location, and Moore pulled up and offered her a ride. Moore said that he knew the victim’s mother, who he mentioned by name, and the victim accepted the ride.
Once inside his vehicle, Moore began complimenting the victim on her looks and asked her if she would be willing to have sex for money. When the victim refused, Moore threatened to kill her if she did not comply. The victim then punched Moore in the face and attempted to escape. Moore struggled to keep her in his car. The victim was able to escape the car, but left several personal effects in the vehicle. Moore sped away from the area.
On June 20, 2012, the victim saw Moore in a checkout line at a supermarket on Alabama Avenue SE. She and a relative confronted Moore, and then reported the sighting to a police officer working at the supermarket. Moore was then placed under arrest.
In announcing the sentence, U.S. Attorney Machen commended the work performed by those who investigated the case from the Metropolitan Police Department’s Sex Crime Investigations Division. He also praised those who handled the case for the U.S. Attorney’s Office, including Victim Witness Advocate Lesley Richardson, Paralegal D’Yvonne Key, and Information Technology Specialist Kimberly Smith. Finally, he commended Assistant U.S. Attorneys Mervin A. Bourne, Jr. and Jeff T. Cook, who investigated and prosecuted the matter.
13-256District Man Sentenced to 14-Year Prison Term for Pair of Robberies of Metro Passengers-Defendant Was Armed with A Handgun in One of the Attacks-Read the Press Release
WASHINGTON – Alazajuan Gray, 20, of Washington, D.C., was sentenced today to a 14-year prison term on charges stemming from a series of crimes, including two robberies that took place on Metrorail trains, U.S. Attorney Ronald C. Machen Jr. announced.
Gray and a co-defendant, Clifton Smith, 21, of Oxon Hill, Md., were found guilty by a jury in May 2013 of armed robbery, robbery, obstruction of justice, threats, contempt of court, carrying a dangerous weapon and other charges. The verdicts followed a trial in the Superior Court of the District of Columbia. Gray was sentenced by the Honorable Herbert B. Dixon, Jr., and Smith is awaiting sentencing.
In addition to the prison term, Judge Dixon ordered Gray to pay $1,800 in fines and $450 in restitution and to undergo anger management and educational training. Upon completion of his prison term, Gray will be placed on five years of supervised release.
According to the government’s evidence, on Sept. 21, 2012, at about 11:30 p.m., Gray and Smith approached several college students who had recently moved to Washington, D.C. as these college students, including the victim, were on a Metrorail train at the Fort Totten station. Gray, who was armed with a handgun, took the victim’s iPhone and money. Smith encouraged Gray to take the victim’s property. The victim did not report the crime at the time; Smith told him not to “snitch” and tell the police or he would be harmed.
One week later, on Sept. 28, 2012, at 8:30 p.m. the same victim, who was returning home from his part-time job he used to pay for community college, was at the Fort Totten Metro station and again encountered Gray and Smith. Gray approached him and flashed a gun. Gray and Smith chased the victim into the station’s kiosk. While inside the kiosk, Smith demanded if he was “snitching” and then assaulted the victim. Gray and Smith fled, but soon were caught by police.
Neither the gun nor the victim’s iPhone were found on either of the defendants. However, police found an iPhone near the location where Smith was stopped that night by the Metro Transit Police. The iPhone was linked to a separate Sept. 28, 2012 robbery. That robbery occurred at 7:30 p.m. on a Metrorail train at the Gallery Place/Chinatown station. In that incident, Gray grabbed an iPhone from a woman who had also recently moved to Washington, D.C. She was studying her graduate school homework as the train arrived at the station. After Gray snatched the iPhone, Smith then blocked the victim’s attempt to chase after Gray.
Cellular tower evidence placed Gray’s cell phone at the scene of the first armed robbery.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department. He also expressed appreciation to the Metro Transit Police and the FBI for assisting in the investigation. Finally, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Todd McClelland, Lynette Briggs, Lynda Randolph, and Kendrell Smith; Litigation Technology Specialists Anisha Bhatia, Thomas Royal, Will Henderson, Josh Ellen, Paul Howell, Claudia Gutierrez, and Leif Hickling; Victim/Witness Advocates Jennifer Clark and James Brennan, former intern Justin Bennett, and Assistant U.S. Attorneys Suzanne Curt and Chrisellen Kolb, Deputy Chiefs of the Appellate Division. Finally, he thanked Assistant U.S. Attorney Phil Selden, of the Felony Major Crimes Section, who is prosecuting the matter.
13-257Director of Operations of North Bergen, N.J., Housing Authority Sentenced to 46 Months in Prison for ExtortionRead the Press Release
NEWARK, N.J. – The director of operations for the Housing Authority of the Township of North Bergen, N.J., was sentenced today to 46 months in prison for extorting employees of a maintenance company contracted by the authority, U.S. Attorney Paul J. Fishman announced.
John T. Kennell, 50, of North Bergen, previously pleaded guilty before U.S. District Judge Jose L. Linares to an information charging him with extortion under color of official right and by fear of economic harm. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
While the director of operations for the NBHA, Kennell used his official position to extort cash payments from employees of a company that provided repair and grounds maintenance services. Kennell, who supervised the employees of the company working for the Authority, accepted cash payments in amounts ranging from $100 to $400 from employees for, among other things, securing additional paid vacation days for these employees. Kennell assisted in securing these additional paid vacation days by falsely reporting to the company that the employees were working at the NBHA, when they were, in fact, traveling outside of the United States. Between February 2008 and June 2011, the company compensated employees for approximately 80 days of unauthorized vacation, totaling $12,498, because of Kennell’s actions.Kennell accepted $2,000 to $2,500 in payments for his official assistance in this fraud. He also accepted cash payments of $50 to $100 from an undocumented alien employee of the company for permitting that employee to twice change the alias that employee was using to continue working. Using his position of authority, as well as the threat of termination of employment, Kennell also regularly extorted the employees of the company – sometimes as frequently as twice a month – for cash payments in amounts ranging from $10 to $20 per employee.
In addition to the prison term, Judge Linares sentenced Kennell to three years of supervised release and ordered him to pay a $5,000 fine.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and special agents of U.S. Department of Housing and Urban Development Office of Inspector General, under the direction of Special Agent in Charge Cary A. Rubenstein, and criminal investigators from the U.S. Attorney’s Office in Newark, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Lee M. Cortes Jr. of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
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Defense Counsel: Arthur R. Carmano Esq., Englewood, N.J.Coal Township Man Charged with Failing to Report Earned IncomeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that charges have been filed against Paul J. Orner, of Coal Township, Pennsylvania.
According to United States Attorney, Peter J. Smith, Orner, age 55, is charged in a one-count Information with failing to report earned income to the Railroad Retirement Board while he was receiving a disability pension. The charge arose out of a Railroad Retirement Board investigation of individuals who failed to report income to the Railroad Retirement Board.
The investigation was conducted by the United States Railroad Retirement Board, Office of Inspector General, and the Internal Revenue Service, Criminal Investigation Division. Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the case.
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 one year 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.
Civilian Navy Employee Who Defrauded Navy and VA of over $350,000 in Benefit Payments to Serve 2 Years in PrisonRead the Press Release
United States Attorney Laura E. Duffy announced that veteran Leray Shurn was sentenced yesterday to serve two years in federal prison by United States District Court Judge Thomas J. Whelan for running a landscaping business while claiming worker’s compensation and unemployment benefits from the Department of the Navy (Navy) and Department of Veterans Affairs (VA) to which he was not entitled. Judge Whelan also ordered Shurn to pay $357,977 in restitution and a $5,000 fine. Shurn’s fraud spanned more than five years and cheated two U.S. government agencies out of over $350,000.
According to evidence presented during trial, Shurn falsely represented to the Navy and VA that back and later knee injuries prevented him from working as a Navy civilian employee, and that he was not engaged in any employment where he received payment of any kind, was not self-employed, was not involved in any business enterprises, and did not have an ownership interest in any business enterprises. He also falsely claimed that his disability prevented him from being able to obtain employment.
In January 2013, a jury returned guilty verdicts on all 16 counts of fraud (5 counts of mail fraud, 4 counts of wire fraud, 5 counts of fraud to obtain federal employee’s compensation, and 2 counts of false statements to the VA). During the trial, the jury heard and saw evidence, including video recordings, that Shurn operated a landscaping business in which he personally performed landscaping work for numerous customers, provided customers with his business card for “Leray’s Landscaping” as well as monthly invoices, and represented to landscaping suppliers that he was in the landscaping business. The jury also received evidence that while Shurn was concealing his landscaping business from the Navy and VA, he completed a survey in which he indicated that he was a business owner.
United States Attorney Duffy added, “During these difficult budgetary times, submission of fraudulent claims harms our community and government agencies by diverting financial resources away from those with legitimate claims who are most in need of benefits payments and prevents agencies from funding other priorities.”
DEFENDANT Case Number: 12CR1053-W Leray Shurn SUMMARY OF CHARGES16 Counts
INVESTIGATING AGENCIES
Title 18, United States Code, Section 1341 - Mail Fraud
Title 18, United States Code, Section 1343 - Wire Fraud
Title 18, United States Code, Section 1920 - False Statement or
Fraud to Obtain Federal Employee’s Compensation
Title 18, United States Code, Section 1001 - False Statement to a Government AgencyNaval Criminal Investigative Service
Department of Veterans Affairs Office of Inspector GeneralCharles City Man Charged with Multiple Firearms ViolationsRead the Press Release
Randy Patrie, age 40, from Charles City, Iowa, has been charged with committing four firearms offenses: 1) stealing firearms from a licensed firearms dealer; 2) possession of stolen firearms; 3) possession of firearms as a felon and an Armed Career Criminal; and 4) possession of sawed-off shotguns. The charges are contained in an Indictment filed on July 23, 2013, in the United States District Court in Cedar Rapids.
A prior criminal complaint alleged that, on or about July 4, 2013, Patrie was found in possession of more than 20 firearms during a search of his home by the Charles City Police Department. Officers searched Patrie’s home while investigating a burglary of a residence in Charles City that occurred on July 4, 2013. During the search, officers found 20 firearms stolen from Gilbert’s Sale Yard, located in rural Floyd, Iowa. Gilbert’s Sale Yard was burglarized on May 2, 2013. The Complaint further alleges that Patrie admitted to law enforcement officers that he committed the Gilbert’s Sale Yard burglary and stole the firearms, and he further admitted he knew he was prohibited from possessing the firearms because he was a convicted felon. According to the complaint, Patrie has the following prior felony convictions:
• Attempted Burglary in the 2nd degree, September 24, 1991, in the Iowa District Court for Mitchell County;
• Delivery of Methamphetamine on May 28, 1996, in the Iowa District Court for Floyd County; and
• Burglary 3rd Degree, on May 27, 2003, in the Iowa District Court for Floyd County.
The indictment charges Patrie in Count 1 with stealing the firearms from Gilbert’s Sale Yard, and in Count 2 with knowing possession of those stolen firearms. Count 3 charges Patrie with being a felon in possession of the firearms stolen from Gilbert’s Sale Yard, and with possessing three additional firearms. Count 3 also alleges Patrie is an armed career criminal in that he possessed the firearms after having been convicted of three or more violent crimes or serious drug offenses. Count 4 of the indictment alleges defendant also possessed two sawed-off shotguns.
If convicted, Patrie faces a possible maximum sentence of life in prison, a $1 million fine, $400 in special assessments, and 14 years of supervised release following any imprisonment.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Federal Bureau of Alcohol, Tobacco, Firearms and Explosive, the Iowa Division of Criminal Investigation, the Charles City Police Department, and the Floyd County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-cr-2016.
California Man Charged with Sexual Exploitation of A Child and Distribution of Material Involving the Sexual Exploitation of MinorsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sacramento, California, man has been indicted by a federal grand jury for Sexual Exploitation of a Child and Distribution of Material Involving the Sexual Exploitation of Minors.
Neal LaPointe, age 30, was indicted by a federal grand jury on June 12, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 22, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is up to 30 years in custody, a $250,000 fine, or both; life of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and LaPointe is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, South Dakota Division of Criminal Investigation, South Dakota Internet Crimes Against Children Task Force, Rosebud Sioux Tribe Law Enforcement Services, Bureau of Indian Affairs, Pennington County Sheriff’s Office, Rapid City Police Department, Sioux Falls Police Department and the U.S. Marshals Service. U.S. Attorney Brendan Johnson and Assistant U.S. Attorneys Tim Maher and Sarah Collins are prosecuting the case.
LaPointe was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for September 10, 2013.Bay Village Man Sentenced to Nearly Four Years in Prison, Ordered to Pay $620,000Read the Press Release
A Bay Village man was sentenced to nearly four years in prison and ordered to pay more than $620,0000 for fraud and tax crimes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Frederick C. Bryant, age 45, admitted to embezzling $505,832 from a victim that he guaranteed a 5 percent rate of return. Bryant converted the money for his own personal use. Bryant also failed to report the funds to the IRS, according to court documents.
He pleaded guilty earlier this year to crimes of mail fraud and tax evasion.
U.S. District Judge Dan Polster sentence Bryant to 46 months in prison. He also ordered Bryant to pay $505,832 in restitution to the victim and more than $115,000 in interest and penalties to the Internal Revenue Service.
This case is being prosecuted by Assistant United States Attorney Vasile C. Katsaros, following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service.
Albanian National Sentenced to Nine Years in Prison for Robbing Two TD Banks in Passaic and Bergen CountiesRead the Press Release
NEWARK, N.J. – An Albanian national who was living in Clifton, N.J., was sentenced today to 108 months in prison for robbing two TD Bank branches while armed with a gun in late 2011, U.S. Attorney Paul J. Fishman announced.
Arlind Hyseni, 31, also known as “Shpend Mazari” and “Luie Belushi,” previously pleaded guilty to an information charging him with two counts of bank robbery. One of the robberies occurred on Nov. 2, 2011, in Clifton in Passaic County, N.J., and the other on Dec. 30, 2011, in Wallington in Bergen County, N.J.
Hyseni pleaded guilty before U.S. District Judge Esther Salas. He was initially charged as Mazari, but admitted at his plea hearing that Hyseni is his real name. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Nov. 2, 2011, Hyseni entered a TD Bank in Clifton armed with a handgun and disguised with a baseball cap and a mask covering the lower part of his face. He ordered two bank employees to go to the vault and turn over cash, which they placed into a dark nylon bag.
Hyseni left the bank with the money, which included several “bait” bills and a dye pack. Hyseni discarded the money a short distance from the scene after the dye pack exploded.
On Dec. 30, 2011, Hyseni entered a TD Bank in Wallington shortly after it opened. He vaulted over the teller counter wearing a mask and armed with a handgun. He again ordered bank employees to go to the vault and hand over cash before fleeing with the money.
In addition to the prison term, Judge Salas sentenced Hyseni to serve three years of supervised release. Hyseni was also ordered to pay $20,715 in restitution.
In arguing for an increased sentence, the government noted Hyseni was convicted in absentia in Albania of robbery resulting in death and illegal possession of military weapons and sentenced to 25 years in prison.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Andrew M. McLees, with the investigation.
The government is represented by Assistant U.S. Attorney Mala Ahuja Harker of the U.S. Attorney’s Office Criminal Division in Newark.
13-302Defense counsel: Assistant Federal Public Defender David Holman Esq., Newark
Accountant Charged with Filing False Tax ReturnRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced today Edda Obando, 65, of Miami, pled guilty to a two count Information charging her with making and subscribing a false tax return, in violation of Title 26, United States Code, Section 7206(1).
According to the Information, Obando, who worked as an accountant, prepared a false and fraudulent tax return and significantly underreported income on her personal tax return.
Obando is scheduled for sentencing on September 30, 2013 before U.S. District Judge Frederico A. Moreno. She faces a maximum statutory sentence of up to three years in prison.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Norman O. Hemming, III.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
53-Year-Old Sioux City Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine pled guilty July 23, 2013, in federal court in Sioux City.
Robert Skarin, 53, from Sioux City, Iowa, was convicted of conspiracy to distribute methamphetamine.
At the plea hearing, Skarin admitted that from the beginning of 2013 through April 2013 he distributed more than 50 grams of actual (pure) methamphetamine in the Sioux City, Iowa area. Skarin admitted that on at least two occasions he and another person traveled to Omaha, Nebraska, to obtain methamphetamine for later distribution in Sioux City. On April 3, 2013, law enforcement conducted a traffic stop of a vehicle driven by Skarin with one passenger. A search yielded a brown paper bag rolled up and hidden inside Skarin’s right sock. The bag contained over 80 grams of actual (pure) methamphetamine. Skarin and his passenger intended to distribute some or all of this methamphetamine.
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Skarin was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Skarin faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, a special assessment of $100, and five years up to life of supervised release following any imprisonment.
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, which 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 the 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 13-4035.
30-count Superseding Indictment Returned for Violations of the Controlled Substances Act and the Federal Gun Control ActRead the Press Release
LANGUNDO FLOWERS, age 33; ODELL WELLS, age 31; DENNIS MORGAN age 27; WALTREL KNOX, age 23, JONATHAN MARTIN, age 28, JOSEPH LEWIS, age 34, CARY BRYANT, age 22, DARREN WILLIAMS, age 25, RICHARD GARRETT, age 25, ALCEE JONES, age 24, RYAN MAGEE, age 20; and CLYDE MITCHELL, age 53, were charged on July 18, 2013, in a thirty (30) count superseding indictment for violations of the Controlled Substances Act and the Federal Gun Control Act, announced U. S. Attorney Dana J. Boente.
LANGUNDO FLOWERS is charged with Conspiracy to Distribute and Possess with Intent to Distribute 280 grams or more of Cocaine Base; Use of a Communications Facility to Commit, Cause and/or Facilitate a Drug Trafficking Crime; Distribution of Cocaine Base; Possession With Intent to Distribute Cocaine Hydrochloride; Possession of a Firearm by a Convicted Felon; and Possession of Ammunition by a Convicted Felon.
ODELL WELLS is charged with Conspiracy to Distribute and Possess with Intent to Distribute 280 grams or more of Cocaine Base; Use of a Communications Facility to Commit, Cause and/or Facilitate a Drug Trafficking Crime; and Possession of Ammunition by a Convicted Felon.
DENNIS MORGAN is charged with Conspiracy to Distribute and Possess with Intent to Distribute 280 grams or more of Cocaine Base and with Use of a Communications Facility to Commit, Cause and/or Facilitate a Drug Trafficking Crime.
WALTREL KNOX is charged Conspiracy to Distribute and Possess with Intent to Distribute 280 grams or more of Cocaine Base; Use of a Communications Facility to Commit, Cause and/or Facilitate a Drug Trafficking Crime; and Distribution of Cocaine Base.
JONATHAN MARTIN is charged with Conspiracy to Distribute and Possess with Intent to Distribute 280 grams or more of Cocaine Base; Use of a Communications Facility to Commit, Cause and/or Facilitate a Drug Trafficking Crime; and Distribution of Cocaine Base.
JOSEPH LEWIS is charged with Conspiracy to Distribute and Possess with Intent to Distribute 280 grams or more of Cocaine Base; Use of a Communications Facility to Commit, Cause and/or Facilitate a Drug Trafficking Crime; and Possession With Intent to Distribute Cocaine Base.
CARY BRYANT is charged with Conspiracy to Distribute and Possess with Intent to Distribute 280 grams or more of Cocaine Base; Use of a Communications Facility to Commit, Cause and/or Facilitate a Drug Trafficking Crime; and Possession With Intent to Distribute Cocaine Base.
DARREN WILLIAMS is charged with Conspiracy to Distribute and Possess with Intent to Distribute 280 grams or more of Cocaine Base and Use of a Communications Facility to Commit, Cause and/or Facilitate a Drug Trafficking Crime.
RICHARD GARRETT is charged with Conspiracy to Distribute and Possess with Intent to Distribute 280 grams or more of Cocaine Base and Use of a Communications Facility to Commit, Cause and/or Facilitate a Drug Trafficking Crime.
ALCEE JONES is charged with Conspiracy to Distribute and Possess with Intent to Distribute 280 grams or more of Cocaine Base; Use of a Communications Facility to Commit, Cause and/or Facilitate a Drug Trafficking Crime; and Distribution of Cocaine Base.
RYAN MAGEE is charged with Conspiracy to Distribute and Possess with Intent to Distribute 280 grams or more of Cocaine Base; Use of a Communications Facility to Commit, Cause and/or Facilitate a Drug Trafficking Crime; and Distribution of Cocaine Base.
CLYDE MITCHELL is charged with Conspiracy to Distribute and Possess with Intent to Distribute 280 grams or more of Cocaine Base; and Possession With Intent to Distribute Cocaine Hydrochloride.
FLOWERS, WELLS, MORGAN, KNOX, MARTIN, LEWIS, BRYANT, WILLIAMS, GARRETT, JONES, MAGEE, and MITCHELL face not less than ten (10) years up to a maximum term of life imprisonment, a fine of up to $10,000,000.00 and not less than five years of supervised release following any term of imprisonment.
This case arose out of a joint investigation conducted by the DEA, HIDTA, Kenner Police Department, HSI, Jefferson Parish Sheriff’s Office, Criminal Intelligence Center, Louisiana State Police, ATF, U.S. Marshals, U.S. Border Patrol, and the Saint John Parish Sheriff’s Office. This investigation targeted a violent Drug Trafficking Organization that operated out of the Lincoln Manor area of Kenner, LA. During the course of the investigation, two major sources of supply of “crack” cocaine for the Lincoln Manor area of Kenner, LA, were identified and dismantled along with their distribution network. Most of the street level distributors for this Drug Trafficking Organization were identified as being affiliated with a local gang who called themselves the “Flippa Squad.” The investigation in on-going.
U. S. Attorney Boente reiterated that the Superseding Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The case is being prosecuted by Assistant United States Attorney J. Collin Sims.
(Download Indictment )
1,500 Cases of Adulterated Dietary Supplements Destroyed in Seizure ActionRead the Press Release
PITTSBURGH, Pa. - United States Attorney David Hickton announced today the destruction of approximately 1,500 cases of adulterated dietary supplements in connection with a civil seizure action filed by the U.S. Attorney’s Office for the Western District of Pennsylvania.
On June 20, the U.S. Attorney’s Office filed a complaint in U.S. District Court requesting the seizure and condemnation of dietary supplements containing the additive 1,3- dimethylamylamine, commonly known as DMAA, located in the Leetsdale, Pa., warehouse of General Nutrition Centers, Inc. (GNC).
According to the complaint, supplements containing DMAA are adulterated and subject to seizure under the Federal Food, Drug, and Cosmetic Act because DMAA is an unsafe food additive. The Government’s complaint followed reports to the Food and Drug Administration (FDA) of at least 86 adverse events involving DMAA-containing supplements. The FDA considers the sale of such supplements in interstate commerce to be illegal and has advised consumers not to buy or use them.
After the seizure action was filed, GNC agreed to voluntarily destroy, at its expense, all DMAA-containing products in its Leetsdale warehouse. The destruction of those products, totaling approximately 1,500 cases, was subsequently witnessed by FDA personnel. On reaching this favorable resolution, the Government dismissed the seizure action as moot.
“We are pleased to have removed from distribution channels a significant quantity of adulterated dietary supplements that may present significant health risks,” said U.S. Attorney Hickton.
In a related matter, the FDA recently announced that USPlabs LLC, manufacturer of the products destroyed in the Leetsdale warehouse, recently destroyed all DMAA-containing products in its Dallas, Texas, facility. Additionally, USPlabs, along with at least 10 other manufacturers of DMAA-containing products, has agreed to stop producing supplements containing DMAA.
This matter was investigated by the United States Attorney’s Office for the Western District of Pennsylvania and the Consumer Protection Branch of the Department of Justice, in collaboration with the FDA. Assistant United States Attorney David Lew handled the matter on behalf of the Government.
Monday 22 July 2013
physician pleads guilty to health care fraud chargesRead the Press Release
BUFFALO, N.Y.---U.S. Attorney William J. Hochul, Jr. announced that Daniel C. Gillick, 63, a physician residing in Youngstown, N.Y., pleaded guilty to obtaining controlled substances by fraud and health care fraud. The charges carry a maximum sentence of 10 years in prison, a $500,000 fine or both.
Assistant U.S. Attorney Maura K. O’Donnell and Timothy C. Lynch, who are handling the case, stated that between August 2011 and September 7, 2011, the defendant was employed as an emergency room physician at Schuyler Hospital. During that time, Gillick devised a scheme whereby on September 7, 2011, his girlfriend reported to the emergency room at Schuyler Hospital and pretended to suffer from a medical condition known as Trygeminal Neuralgia. The defendant then performed an apparent examination of her, fraudulently diagnosed her as suffering from Trygeminal Neuralgia and issued a prescription to her for Dilauded, a controlled substance.
In reality, Gillick’s girlfriend was not suffering from this condition, and had no medical need for the drug Dilaudid. In participating in this illegal scheme, the defendant defrauded Schuyler Hospital and also aided and abetted his girlfriend in obtaining a controlled substance by fraud.
“With the abuse of prescription drug medications at epidemic levels in our community and across the country, our Office will not stand for a member of the medical community defrauding the health care system by illegally prescribing such medications,” said U.S. Attorney Hochul. “When used appropriately, prescription pain medications can be of great benefit to a patient but when abused, they can lead to a lifetime of addiction resulting in serious, even deadly complications. Our Office, along with our law enforcement partners, will not hesitate to prosecute those in the medical profession who abuse their positions of trust.”
Gillick and his girlfriend Christina Guilfoyle were arrested in November 2012. Charges are pending again Guilfoyle.
The plea is the result of an investigation on the part of Special Agents of the United States Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Rcihard M. Frankel, the New York State Police, under the direction of Major Michael Cerretto, Customs and Border Protection, under the direction of James Engleman, Director of Field Operations, The New York State Attorney General Medicaid Fraud Control Unit, the Amherst Police Department, under the direction of Chief John Askey, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Lancaster Police Department, under the direction of Chief Gerald Gill, the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, the Depew Police Department, under the direction of Chief Stan Carwile, and the Niagara County Sheriff’s Drug Task Force, under the direction of Sheriff James Votour.
Two New Haven Drug Dealers Sentenced to Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that two men involved in New Haven-area drug trafficking were sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven. EZEL BUCHANAN, also known as “E.Z.,” 34, of Hamden, was sentenced to 72 months of imprisonment, followed by five years of supervised release, and JERMAINE GALBERTH, also known as “Maine,” 27, of New Haven, was sentenced to 24 months of imprisonment, followed by three years of supervised release.
BUCHANAN and GALBERTH and more than 100 other individuals were charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants and seizures of narcotics and firearms. The investigation revealed that BUCHANAN conspired with others to purchase and redistribute crack cocaine, and that GALBERTH conspired to distribute heroin.
On September 27, 2012, BUCHANAN pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of cocaine base (“crack cocaine”). BUCHANAN’s criminal history includes six felony convictions, including four felony drug convictions.
On April 15, 2013, GALBERTH pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys S. Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Texas Man Convicted in $3.9 Million Money Laundering SchemeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that following a week long jury trial before U.S. District Court Judge Christopher C. Conner, a Texas man was convicted on July 19 on 14 Conspiracy and Money Laundering counts stemming from a scheme to defraud hundreds of victims across the country, including several from central Pennsylvania, out of more than $3.9 million and to launder the proceeds.
Olufemi Adigun, age 27, of Stafford, Texas, was indicted in December 2012 along with two other defendants, Uchechukwu Stanley Ohiri, age 29, and Benjamin Chikwe, age 32, both of Houston, Texas.
According to U.S. Attorney Peter J. Smith, the trial revealed that in 2008, Adigun operated MoneyGram and Western Union outlets out of an empty Houston storefront known as “FAB Tax Services,” a fictional tax service provider. The storefront was used by Adigun and his codefendants to intercept and launder $3.9 million sent by victims defrauded by advance fee, mass marketing schemes via the MoneyGram and Western Union money transfer systems.
The schemes rely heavily upon the MoneyGram and Western Union money transfer systems for success. More commonly known as Secret Shopper, Advance Fee, or Canadian Lottery schemes, perpetrators contact victims via the U.S. mail or the internet promising large cash prizes, lottery winnings, fictitious loans, or automobiles and motorcycles for sale. Counterfeit checks are sometimes sent to the victims who are induced into depositing them before returning a portion of the funds to the fraudsters via the MoneyGram and Western Union money transfer systems. The victims suffer a financial loss when the counterfeit checks bounce or after they send the fraudsters thousands of dollars of their own money for non-existent merchandise.
Adigun and his codefendants would intercept the victims’ money transfers and launder the proceeds before sending the proceeds back to the fraudsters minus a money laundering fee, typically 10-20%. Adigun and his codefendants would also enter false payee identification information into the MoneyGram and Western Union databases, thereby maintaining the anonymity of the fraudsters and creating the illusion that a bona-fide payee had physically entered the receiving outlet.
In almost all of the schemes the victim sender is instructed to provide the Money Transfer Reference Number (MTRN) to the fraudster immediately after the transfer is sent. Armed with the MTRN, FAB Tax Services or any other corrupt money transfer agent could query the MoneyGram and Western Union money transfer databases and remove the funds from the systems, even though FAB was physically located thousands of miles away from the intended payee.Adigun began operating FAB as a Western Union outlet in December 2007 and as a MoneyGram outlet in May 2008. Thereafter, more than 500 customers filed Consumer Fraud Reports (CFRs) with the two companies complaining they had been defrauded. The investigation revealed all 500 of the transfers had been paid out at FAB. As a result, MoneyGram and Western Union terminated FAB on August 20, 2008 and September 2, 2008 respectively. By that time, however, more than 1,241 victims had been defrauded out of $3,919,711. Adigun and his codefendants laundered $3.1 million of the $3.9 million by converting it into cash, withdrawing as much as $70,000 to $80,000 a day from 3 FAB bank accounts they controlled in the greater Houston area. The trio also forwarded another $650,000 offshore via the MoneyGram and Western Union money transfer systems, primarily to Canada, Nigeria and Romania. More than $100,000 of the offshore transfers were sent to just one MoneyGram agent in Toronto, which was also later closed for money laundering activity.
Adigun’s codefendant, Benjamin Chikwe, pleaded guilty to conspiracy to commit money laundering and is awaiting sentencing. Uchechukwu Stanley Ohirihas remains a fugitive.
Following the conviction, Judge Conner revoked release and committed Adigun to prison pending the sentencing in October.
This case was investigated by the Harrisburg Office of the U.S. Postal Inspection Service and was prosecuted by Assistant United States Attorney Kim Douglas Daniel.
The Postal Inspectors’ investigation has resulted in the conviction of more than 21 corrupt MoneyGram and Western Union agents from across the United States and Canada in the Middle District of Pennsylvania. The Postal Service’s investigation has also resulted in the prosecution of MoneyGram in the Middle District for aiding and abetting wire fraud, and for its failure to maintain an effective anti-money laundering program as required by federal law. In November 2012 the Company entered into a Deferred Prosecution Agreement with the government that required MoneyGram to pay $100,000,000 into a victim’s restitution fund, to make substantive improvements to its anti-money laundering programs, and to retain a Corporate Compliance Monitor selected by the government for the next five years.
Romanian Man Pleads Guilty to On-Line Auction FraudRead the Press Release
A Romanian citizen who traveled to Seattle in April 2013 in an attempt to scam participants in internet auctions pleaded guilty today in U.S. District Court in Seattle to bank fraud, announced U.S. Attorney Jenny A. Durkan. DANIEL MUNTEANU, 29, was arrested May 1, 2013 at Seattle-Tacoma International Airport as he attempted to board a flight to Amsterdam. While in Seattle MUNTEANU used phony passports to establish bank accounts and mail box rentals. Using the accounts and mail drops, he and co-conspirators scammed various participants in eBay auctions. MUNTEANU is scheduled for sentencing by U.S. District Judge Martinez on October 24, 2013.
According to records filed in the case, MUNTEANU’s co-conspirators picked victims by contacting those who had been unsuccessful in bidding for boats, cars, farm equipment or other vehicles on eBay. Posing as sellers, the co-conspirators would seek to negotiate the sale of the item the victim had bid on in the auction. After striking a deal, victims would receive emails appearing to be from eBay and their “Purchase Protection Plan.” The emails even had a link to an eBay “live help” function. But the emails and links were fraudulent. Purchasers thought their payments were going into a secure escrow account until they could inspect the vehicles. Instead, the purchasers’ money went directly to accounts opened in false names by MUNTEANU using phony passports. MUNTEANU controlled the accounts and quickly moved the money off shore to co-conspirators in Romania. In all, five victims suffered losses of more than $120,000.
“This type of fraud erodes trust and undermines legitimate online commerce, and we will track down and prosecute scam artists,” said U. S. Attorney Jenny A. Durkan. “I appreciate the efforts of the Homeland Security Investigations agents who pursued this case and protected the victims.”
“The vast majority of online auctions are legitimate, which leaves consumers who’ve had positive online buying experiences with a false sense of security,” said Brad Bench, special agent in charge of HSI Seattle. “The defendant and his co-conspirators in this case exploited this vulnerability to swindle their victims. While HSI works closely with its enforcement partners here and overseas to aggressively target this type of crime, consumers must take steps to protect themselves.”
Bank Fraud is punishable by up to 30 years in prison and a $1,000,000 fine.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Kate Vaughan.
Press contact for the U.S. Attorney’s Office is Thomas Bates at (206) 553-7970 or [email protected].
Post Falls Man Pleads Guilty to Producing Images of Sexually Explicit Conduct Involving A Three-year-old ChildRead the Press Release
COEUR D’ALENE – Dylan Joral Ritter, 29, of Post Falls, Idaho, pleaded guilty today in United States District Court in Coeur d’Alene to production of child pornography, U.S. Attorney Wendy J. Olson announced. A federal charge was brought against Ritter on May 20, 2013.
According to his plea agreement, Ritter came to the attention of law enforcement in May 2012, when an agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI) discovered that Ritter had been making child pornography available on the Internet. In July 2012, a federal search warrant was executed at Ritter’s Post Falls residence. Ritter admitted that he had been downloading child pornography over the Internet. He also admitted that he had been sexually abusing a three-year-old relative and had taken photos of this sexual contact with his cell phone. An ICE forensic examiner located the images on Ritter’s cell phone. A Post Falls Police detective used the images to accurately identify the child.
The charge of sexual exploitation of a child by producing sexually explicit images is punishable by 15 to 30 years in prison, a maximum fine of $250,000, and a minimum term of five years up to lifetime supervised release. The government is seeking forfeiture of the computer equipment and cell phone used in the offense.
Sentencing is set for October 16, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Post Falls Police Department, and the Federal Bureau of Investigation. The agencies are North Idaho members of the Idaho Internet Crimes Against Children (ICAC) Task Force, a statewide coalition of local, state and federal law enforcement and prosecution agencies, focused on apprehending and prosecuting individuals who use the Internet to criminally exploit children. For more information about the Idaho ICAC Task Force and a list of all the participating agencies, visit www.icacidaho.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Philadelphia Man Sentenced for Defrauding Former Property Owners and Their FamiliesRead the Press Release
PHILADELPHIA - Amin A. Rashid, a/k/a “Lawrence D. Wilson,” 63, of Philadelphia, was sentenced today to 240 months in prisoin for mail fraud and aggravated identity theft in connection with a three-year fraud scheme. The scheme defrauded former property owners and their families of over $650,000. Rashid was convicted at trial on July 12, 2011. In addition to the prison term, U.S. District Court Judge Cynthia M. Rufe ordered restitution of $782,391, a $1700 special assessment, and five years of supervised release.
From at least December 2005 to August 2008, Rashid operated “The Center for Constitutional and Criminal Justice” under the guise of assisting former owners of properties sold at Sheriff’s sale. Rashid told these clients that he could help recover their properties or the proceeds from the Sheriff’s sale. Rashid took fees from these clients and photocopies of their drivers licenses but typically did nothing in return.Rashid altered his clients’ driver’s licenses and submitted them to a title company along with forged power of attorney documents to steal Sheriff’s sale proceeds due to other former property owners. The forged power of attorney documents carried signatures of former property owners who actually died years before they purportedly signed the documents. In addition, Rashid submitted bogus corporate resolutions that purportedly authorized him to collect Sheriff's sales proceeds that were due to these corporations. Rashid used his family members to pose as officers of these corporations.
The case was investigated by the United States Postal Inspection Service, the Philadelphia County District Attorney’s Office, and the Philadelphia Police. It was prosecuted by Assistant United States Attorney Vineet Gauri.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Panama City Man Indicted on Child Exploitation ChargesRead the Press Release
PANAMA CITY, FLORIDA – A federal Grand Jury returned an indictment last week charging Daniel Freiwald (29), an active duty Air Force member stationed at Tyndall Air Force Base, with 3 counts of child exploitation offenses. The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Counts One and Two of the Indictment allege that between December 7, 2012, and January 23, 2013, Freiwald knowingly and intentionally distributed and received images and videos of child pornography. Count Three alleges that during that same time frame, Freiwald knowingly possessed child pornography. If convicted of counts one and two of his indictment, Freiwald faces a sentence of a mandatory five (5) years to a maximum of twenty (20) years in prison. If convicted on count three of his indictment, Freiwald faces a term of imprisonment of not more than ten (10) years. Additionally, as to each count, Freiwald faces the imposition of a fine of up to $250,000, not less than five (5) years and up to a lifetime term of supervised release, and a $100 special monetary assessment.
Freiwald appeared for his initial appearance and arraignment in United States District Court in Panama City, Florida. Freiwald pled not guilty to the charges and his trial was scheduled for September 23, 2013 before United States District Judge Richard Smoak.
The Indictment results from an investigation by agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Pensacola Police Department, and the North Florida Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorney Kathryn Risinger.
An Indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Owner of Nine Marijuana Stores in Orange and Los Angeles Counties Sentenced to 262 Months for Drug Trafficking and Tax EvasionRead the Press Release
SANTA ANA, California – A San Clemente man who owned and operated a string of nine illegal marijuana stores that generated at least $25 million in profits was sentenced today to 262 months in federal prison.
John Melvin Walker, also known as “Pops,” 56, of San Clemente, was sentenced by United States District Judge James V. Selna. In addition to the prison term, Judge Selna ordered Walker to pay the Internal Revenue Service $2,415,409.29 and California State Board of Equalization $1,857,280.00 in restitution.
Walker pleaded guilty in April to two felony counts – one count of conspiring to distribute well over a ton of marijuana and maintaining drug-involved premises, and one count of tax evasion.
“Drug use and addiction continue to have devastating impact on far too many lives. Today's sentence demonstrates DEA's commitment to our communities and children by working with our law enforcement partners to investigate and bring to justice those who supply these dangerous drugs,” said Special Agent in Charge Anthony D. Williams.
Walker was the lead defendant in a 14-defendant indictment returned by a federal grand jury last fall. The indictment outlined a drug-trafficking conspiracy led by Walker, who owned and operated at least nine marijuana stores in cities across Los
Angeles and Orange counties. The nine marijuana stores were located in Long Beach, Dana Point, Garden Grove, Santa Ana, Santa Fe Springs, Costa Mesa, Whittier, and San Juan Capistrano.Walker was “the kingpin of a large, organized criminal enterprise awash in narcotics, firearms, and, most of all, money,” prosecutors wrote in a sentencing brief.
Walker admitted in the federal tax case that he earned approximately $25 million from marijuana sales over the course of six years. Walker specifically admitted that he earned $11.4 million in 2009, but reported to the Internal Revenue Service only a tiny fraction of that income. As part of his plea agreement, Walker agreed to pay the IRS more than $2.4 million in back taxes for years 2006 through 2011, as well as $1.8 million in restitution to the California Board of Equalization. In addition to the $4.2 million he has agreed to pay to federal and state tax authorities, Walker agreed to forfeit to the government $25 million in illegally obtained income, which includes, among other assets, more than $500,000 in cash previously seized by law enforcement authorities, his multi-million dollar home in San Clemente, a string of mobile homes in Mammoth Lakes, rental properties in Long Beach, and his interest in two strip clubs.
The sentencing memo filed by prosecutors argued that Walker’s “conduct was not the result of some misplaced idealism or altruistic instinct, but was rather driven by his insatiable quest for the massive illicit profits generated by his crimes, and the luxurious lifestyle those profits bought.”
Walker, a twice convicted felon, also admitted that he possessed firearms in relation to the drug-trafficking offense. Authorities discovered in one of Walker’s “stash houses” an AK-47-style assault rifle, three other firearms and ammunition.
Walker “wanted to be called ‘Pops’ for a reason,” according to the government’s sentencing memorandum. “He was in charge of this criminal organization. This was
his scheme and he was the only authority that mattered in his criminal enterprise.”Walker has been in custody since pleading guilty in this case on April 1.
The investigation into Walker’s chain of marijuana stores was conducted by the Orange County Sheriff’s Department; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; IRS-Criminal Investigation; the California Board of Equalization; and the Orange County District Attorney’s Office.Release No. 13-096
Omaha Man Given 24 Month Prison Sentence for Pointing Laser at AircraftRead the Press Release
United States Attorney Deborah R. Gilg announced that Michael A. Smith, age 30 of Omaha, Nebraska, was sentenced in federal court in Omaha for shining a laser pointer at a police helicopter. The Honorable John Gerrard sentenced Smith to 24 months in prison to be followed by a 3 year term of supervised release.
On April 24, 2013, Smith was convicted by a federal jury, following a 2 day trial, for striking an Omaha Police Department helicopter with a laser pointer in Northwest Omaha. The police helicopter was responding to a Southwest Airlines commercial flight which reported that it had been struck by a laser one hour earlier.
Smith is the first person indicted in the District of Nebraska under a new federal law making it a federal crime to target aircrafts with lasers. According to the Federal Aviation Administration, lasers can temporarily blind a pilot and make it impossible to safely land an aircraft. Smith faced a maximum penalty of up to five years in prison.
This case was investigated by the Federal Bureau of Investigation, the Federal Air Marshal Service, the Douglas County Sheriff’s Office and the Omaha Police Department.New York Doctor Sentenced to Nine Years in Prison for Oxycodone Distribution and ConspiracyRead the Press Release
TRENTON, N.J. – A physician who wrote illegal prescriptions for oxycodone was sentenced today to 108 months in prison for his participation in a conspiracy to illegally distribute the medication, U.S. Attorney Paul J. Fishman announced.
Dr. Hassan Lahham, 55, of New York, previously pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to Count One of an Indictment charging him with conspiring to distribute oxycodone.
According to documents filed in this case and statements made in court:Since January 2009, Lahham issued prescriptions to co-conspirators for drugs containing oxycodone, outside the usual course of medical practice and not for any legitimate medical purpose. The prescriptions were filled at various New Jersey pharmacies located in and around Monmouth, Ocean, and Atlantic counties and redistributed by others. Lahham wrote the prescriptions in exchange for cash payments, and knew the pills were to be redistributed.
Oxycodone, the active ingredient in brand name pills such as Oxycontin, Roxicodone and Percocet, is a Schedule II controlled substance – meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.
In addition to the prison term, Judge Wolfson sentenced Lahham to three years of supervised release.U.S. Attorney Fishman credited the Drug Enforcement Administration’s New Jersey Division under the direction of Special Agent in Charge Carl J. Kotowski, along with the Special Agents, Diversion Investigators, Task Force Officers, Detectives and Intelligence Analysts of the Atlantic City Resident Office; Camden Resident Office Diversion Group; Seaside Heights Police Department; Barnegat Police Department; Ship Bottom Police Department; and the N.J. DEA Tactical Diversion Squad, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Fabiana Pierre-Louis of the U.S. Attorney’s Office in Trenton.
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Defense counsel: Frank P. Arleo Esq., West Orange, N.J.
New York Doctor Sentenced to Nine Years in Prison for Oxycodone Distribution and ConspiracyRead the Press Release
TRENTON, N.J. – A physician who wrote illegal prescriptions for oxycodone was sentenced today to 108 months in prison for his participation in a conspiracy to illegally distribute the medication, U.S. Attorney Paul J. Fishman announced.
Dr. Hassan Lahham, 55, of New York, previously pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to Count One of an Indictment charging him with conspiring to distribute oxycodone.
According to documents filed in this case and statements made in court:Since January 2009, Lahham issued prescriptions to co-conspirators for drugs containing oxycodone, outside the usual course of medical practice and not for any legitimate medical purpose. The prescriptions were filled at various New Jersey pharmacies located in and around Monmouth, Ocean, and Atlantic counties and redistributed by others. Lahham wrote the prescriptions in exchange for cash payments, and knew the pills were to be redistributed.
Oxycodone, the active ingredient in brand name pills such as Oxycontin, Roxicodone and Percocet, is a Schedule II controlled substance – meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.
In addition to the prison term, Judge Wolfson sentenced Lahham to three years of supervised release.U.S. Attorney Fishman credited the Drug Enforcement Administration’s New Jersey Division under the direction of Special Agent in Charge Carl J. Kotowski, along with the Special Agents, Diversion Investigators, Task Force Officers, Detectives and Intelligence Analysts of the Atlantic City Resident Office; Camden Resident Office Diversion Group; Seaside Heights Police Department; Barnegat Police Department; Ship Bottom Police Department; and the N.J. DEA Tactical Diversion Squad, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Fabiana Pierre-Louis of the U.S. Attorney’s Office in Trenton.
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Defense counsel: Frank P. Arleo Esq., West Orange, N.J.
New Jersey Man Sentenced on Sex Trafficking ChargesRead the Press Release
DES MOINES, IA – On July 19, 2013, Johnelle Lewis Bell, age 29, of Hammonton, New Jersey, was sentenced in United States District Court in Des Moines on charges of sex trafficking and associated charges, announced United States Attorney Nicholas A. Klinefeldt. Chief United States District Court Judge James E. Gritzner sentenced Bell to a net term of imprisonment of 360 months, to be followed by 5 years of supervised release. Bell was also ordered to pay a $1,200.00 special assessment for the Crime Victim Fund. Bell remained in the custody of the United States Marshal’s Service pending designation of the Federal Bureau of Prisons facility at which he will serve his sentence.
There is no parole in the federal system. Bell will serve an estimated 85% of his sentence of imprisonment, then be placed on supervised release. If Bell violates the conditions of his supervised release, a judge could sentence him to further imprisonment.
“Defendant Johnelle Bell essentially enslaved these women, and forced them to commit sex acts for his financial gain. Bell’s sentence, which he must serve 85% of, reflects the seriousness of his crime,” said United States Attorney Nicholas Klinefeldt.
In all, Bell was sentenced on 12 charges. The charges and respective sentences are as follows:
• Count 1, conspiracy to commit sex trafficking: 360 months imprisonment;
• Counts 2 and 3, sex trafficking: 180 months imprisonment on each count;
• Counts 4-7, coercion or enticement to travel in interstate commerce for prostitution: 240 months imprisonment on each count;
• Count 8, conspiracy to transport in interstate commerce for prostitution: 60 months imprisonment;
• Counts 9-12, transportation in interstate commerce for prostitution: 120 months imprisonment on each count.
All of the sentences were imposed to run concurrently.
Bell was originally indicted in a twelve-count indictment on April 26, 2012, and a twelve-count superseding indictment was returned by the Federal Grand Jury on November 6, 2012. On November 20, 2012, following an almost week-long trial, a federal jury in Council Bluffs found Bell guilty of all twelve counts with which he was charged.
The charges arose from a prostitution sting operation on June 18, 2011, by the Child Exploitation Task Force (formerly the Great Plains Innocence Lost Task Force) operating in the Omaha-Council Bluffs area. The Task Force is led by the Omaha Office of the Federal Bureau of Investigation, and at the time of this sting operation, included officers from the Council Bluffs Police Department, the Southwest Iowa Narcotics Enforcement Task Force, and the Omaha Police Department. Agents from FBI offices other than Omaha were also participating in this operation. The Task Force emphasizes crimes against minors, but also investigates adult sex trafficking cases discovered in the course of its pro-active investigations. While this case dealt primarily with young adult females roughly 19-23 years of age, at least two of the young adults involved in this case reported becoming engaged in prostitution as minors, by at least about ages 16 or 17.
“This sentencing removes an evil predator from the streets and prevents him from exploiting others”, said FBI Special Agent in Charge Thomas R. Metz. “The FBI led Child Exploitation Task Force will continue to aggressively pursue and bring to justice individuals such as Bell who prey on others in such a cruel manner.”
On June 18, 2011, answering ads for prostitution on Backpage.com, for Omaha, Nebraska and Council Bluffs, Iowa, an undercover FBI agent posing as a customer arranged a “date” for prostitution. At the ensuing raid, agents and officers encountered Johnelle Lewis Bell and three adult females engaged in prostitution. The resulting federal investigation uncovered a sex trafficking venture involving Bell and as yet to be formally identified “pimp partners,” centering around Little Rock, Arkansas. Evidence produced at trial showed the traveling prostitution venture operating in at least Arkansas, Iowa, Nebraska, Kansas, Colorado, Pennsylvania, Maryland, South Carolina, Louisiana, Georgia, Alabama, Texas, and Tennessee. Two of the sex trafficking counts related to incidents in May and June of 2011 in Des Moines, Iowa. Prostitution adds by Bell were also posted in the Quad Cities area of Iowa and Illinois, and in the Omaha-Council Bluffs area of Nebraska and Iowa.
Young adult women formerly working as prostitutes for Bell testified at trial regarding their histories of very troubled childhoods, mental and emotional problems, homelessness and lack of material support, and substance abuse. These victims testified that Bell lured them to work for Bell on promises of love and long-lasting personal relationships, and help with problems in their lives. However, once they engaged in prostitution for Bell, the promises evaporated, and all of the money from the sex acts they performed at Bell’s direction, went to Bell.
One of the victims testified she was repeatedly physically assaulted by Bell, including being whipped with a belt and severely beaten on at least two other occasions, in part for “disrespecting” her pimp, Bell; for threatening to go to the police; for falling asleep while she was supposed to be engaged in prostitution for Bell; to force her to commit sex acts she did not want to commit; and to keep her from leaving Bell as a prostitute working under his control. According to this witness, Bell not only physically beat her, but also threatened the victim, her family, and her very young child with serious harm or death if she did not do as Bell told her. According to testimony at trial, her ordeal ended on June 18, 2011, when she was, with others, rescued by members of the Task Force operating in the Omaha-Council Bluffs area.
Another victim testified about having been at a “party-weekend” with Bell and others, and then being held by Bell against her will for approximately a week, moved from state to state by Bell, and forced by Bell to engage in prostitution. The victim testified that she was forced to stay with Bell and engage in prostitution under his control, by Bell’s threats of seriously harming or killing the victim, her family, and particularly the victim’s 2-3 year old daughter, and because she knew that another young woman under Bell’s control had been very badly treated by Bell. According to testimony at trial, her ordeal also ended on June 18, 2011, about a week after Bell forced her to be under his control.
Brittany Lawson, age 23, of Hot Springs, Arkansas, a co-defendant of Bell’s, pled guilty on October 12, 2012, to Count 1 of the original Indictment, conspiracy to commit sex trafficking. Ms. Lawson was sentenced on February 25, 2013, in Council Bluffs, by Chief United States District Court Judge James E. Gritzner, to 50 months imprisonment, to be followed by 5 years of supervised release, and a $100.00 special assessment for the Crime Victims Fund. Lawson is currently serving her term of imprisonment. Lawson was, throughout much of the conspiracy, the prostitute who assisted Bell in managing the other prostitutes. None of the acts of force, fraud or coercion alleged against Bell were alleged to have been committed by Lawson. However, she knew what was happening to the other prostitutes and still managed them for Bell.
This case was investigated by the Federal Bureau of Investigation, the Council Bluffs Police Department, the SouthWest Iowa Narcotics Enforcement Task Force, and the Omaha Police Department, and had assistance from other law enforcement in a number of states. The investigation of this case took place in Iowa, Nebraska, Arkansas, Louisiana, Pennsylvania and other locations. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
The task force which worked this case and is working others in Iowa and Nebraska, primarily in the Omaha-Council Bluffs Metro Area, is being expanded to include other law enforcement agencies. Further, the task force could not do its work without the substantial assistance of victims by victim treatment and advocacy agencies in the area and elsewhere. The task force has significant ties with emergency care, shelter, and other government and non-government agencies throughout the area and beyond, providing needed security, and emergency and long-term care to victims of human trafficking. Both the FBI and United States Attorney’s Office Victim Specialists are active in working with these other agencies to ensure and enhance the treatment and other assistance needed when victims of sex trafficking are encounter
(Download Press Release )
Multiple Defendants Charged in Allegheny County-Beaver County Prescription Drug RingRead the Press Release
PITTSBURGH, Pa. - Twelve western Pennsylvania residents have been indicted by a federal grand jury alleging their participation in a prescription drug ring operating in Allegheny and Beaver Counties, United States Attorney David J. Hickton announced today. The indictments were returned on July 16, 2013, and unsealed this week.
“These indictments charge participants at all levels of a western Pennsylvania oxycodone and Opana distribution ring - from the leader, to the prescription thief, to the pharmacy burglars, to the runners who presented the fake prescriptions to be filled,” said U.S. Attorney Hickton. “Dismantling these operations continues to be a priority of this office as we endeavor to address the prescription drug abuse epidemic. As this case illustrates, abuse of prescription pills can result in grave harm and death.”
“Prescription drug abuse encompasses far more than the act of selling drugs; it often involves property crimes and crimes of violence. It is a serious threat to our communities and children. In 2011 for example, there were 2.3 million persons age 12 and older who used prescription drugs for the first time for non-medical reasons,” said Drug Enforcement Administration (DEA) Special Agent in Charge David G. Dongilli. “DEA is committed to confronting this threat to public health and will continue to target those who would profit from the illegal sales of prescription drugs without regard to the damage it causes to people and communities. DEA wishes to thank the U.S. Attorney’s Office for their support in this prosecution.”
A 12-count indictment charging violations of federal narcotics, firearms and burglary laws named:
- David Best, 27, of Coraopolis, Pa.;
- Matthew Moody, 24, of Baden, Pa.;
- Jade Gagianas, 28, of Freedom, Pa.;
- Katie Adams, 27, of Ambridge, Pa.;
- Andrew Brown, 23, of Eighty Four, Pa.;
- Ryan Raithel, 33, of Wexford, Pa.; and,
- Carlos Martinez, 26, of Ambridge, Pa.
Count 1 charges Best, Moody, Gagianas, Adams, Brown, and Raithel with conspiring together and with others, from around December 2011 until May 2013, to distribute and possess with intent to distribute the Schedule II controlled substances oxycodone and oxymorphone, in the form known as Opana.
Counts 2 through 4 charge Best with distributing oxycodone and oxymorphone, in the form known as Opana, on May 8, 2012, April 18, 2013, and April 30, 2013. Count 4 alleges that when Best distributed both oxycodone and Opana on May 8, 2012, a person known to the grand jury died as a result of his use of the drugs.
Count 5 charges that Best, on or about June 20, 2012, used, carried, and brandished a firearm during and in relation to a drug trafficking crime (the conspiracy).
Counts 6 through 11 reflect charges that on three occasions, Dec. 1, 2011, Sept. 26-27, 2012, and Feb. 15, 2013, Best burglarized the MedFast pharmacy in Baden, Pa., and from that pharmacy stole a number of Schedule II controlled substances, including: fentanyl, oxymorphone, including in the form known as Opana, Ritalin, oxycodone, including in the form known as Oxycontin, methylphenidate, Vyvanse, morphine sulfate, Roxicet, Focalin, methylphenidate, hydromorphone, methadone, and meperidine. Adams and Martinez are also charged with the Sept. 26-27, 2012, burglary of that pharmacy.
Finally, Count 12 charges Raithel with distributing a quantity of a mixture and substance containing a detectable amount of heroin, a Schedule I controlled substance, on or about Aug. 10, 2012.
On the drug conspiracy charge, the possession with the intent to distribute and distribution charges, and pharmacy burglary charges, the law provides for a maximum total sentence as to each count of 20 years in prison, a fine of up to $1,000,000 ($250,000 for the pharmacy burglaries), or both. When death results from the use of illegally distributed Schedule I or II drugs, the penalty increases to a mandatory minimum of 20 years and a maximum of life imprisonment. Finally, for the firearms charge, there is a mandatory minimum of seven years, a maximum of life imprisonment, and a fine of up to $250,000. Any penalty imposed on the firearms charge must run consecutively to any other penalty. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
In a separate but related indictment, two residents of Western Pennsylvania have been indicted on a charge of witness intimidation. The one-count indictment named:
- Natalie Moskorisin, 23, of Ambridge, Pa.; and
- Wesley Weaver, 23, of Coraopolis, Pa.
According to the indictment, on or about June 6, 2013, in the Western District of Pennsylvania, Moskorisin and Weaver knowingly intimidated and attempted to intimidate witnesses in a federal proceeding, that being the federal investigation and prosecution of David Best.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
Three additional Pittsburgh-area residents were indicted separately on charges of violating federal narcotic laws.
A one-count indictment charges that on Sept. 19, 2012, Janna Gahagan, 29, of Pittsburgh, Pa., conspired with others to obtain oxycodone by fraud, in that she passed a fraudulent oxycodone prescription at a pharmacy, thereby obtaining oxycodone pursuant to that fraudulent prescription.
Another one-count indictment charges that from March 23, 2012, and continuing until July 17, 2012, Breanne McKee, 29, of Saxonburg, Pa., conspired with others to obtain oxycodone and oxymorphone, in the form known as Opana, by fraud, in that she passed fraudulent prescriptions at area pharmacies, thereby obtaining oxycodone and oxymorphone pursuant to those fraudulent prescriptions.
Finally, a one-count indictment charges that on or about April 26, 2013, Christopher Nugent, 34, of Pittsburgh, Pa., conspired with others to obtain oxycodone by fraud, in that he passed a fraudulent oxycodone prescription at a pharmacy, thereby obtaining oxycodone pursuant to that fraudulent prescription.
For Gahagan, McKee and Nugent, the law provides for a maximum total sentence of not more than four years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting these cases on behalf of the government.
The Drug Enforcement Administration and the Economy Borough and Cranberry Township Police Departments conducted the investigation leading to the indictment in these cases.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Mtn. Home Man Sentenced for Child Pornography OffenseRead the Press Release
Son Convicted and Sentenced Last Year for Possessing Sexually Explicit Images of Minors
BOISE – U.S. Attorney Wendy J. Olson announced today that Michael John Ebenhoeh, 53, of Mountain Home, was sentenced to 48 months in prison followed by five years of supervised release for possession and access with intent to view sexually explicit images of minors. Ebenhoeh appeared this morning before the Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise. He pleaded guilty to the charge on April 18, 2013.
According to court documents, members of the Idaho Internet Crimes Against Children Task Force determined that between November 10, 2010, and July 18, 2011, multiple digital files known to contain child pornography involving very young children were being downloaded and offered for sharing from a residence in Mountain Home, Idaho. On September 28, 2011, a search warrant was executed at the residence and several computers were seized. At the time of the search, Ebenhoeh’s son, Joseph, 27, was arrested. Joseph subsequently pleaded guilty to possessing sexually explicit images of minors. He was sentenced in July 2012 to 210 months in prison followed by 25 years of supervised release.
On the day of the search, an investigator approached Michael Ebenhoeh and told him that a child pornography file had been found on his computer. At that time, Michael denied knowing how the child pornography files were on his computer.
Further investigation determined that there were separate Internet accounts in the home associated with Michael and his son, and that the computer that belonged to Michael had not been used by his son. According to the plea agreement, investigators again interviewed Michael, who then admitted he had lied to the police previously. He further admitted that four or five times a week for the previous year he had used the computer to search online for pornography depicting children. Investigators found sexually explicit images of children between the ages of two and 14 years of age on Michael's computer. Several of the children depicted were identified as sexual abuse victims from Missouri, Nevada, Maryland and Washington State.
The case was investigated by Boise Police Department detectives who are members of the Idaho Internet Crimes Against Children Task Force (ICAC), with assistance from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Mountain Home Police Department.
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, visit www.usdoj.gov/psc.
For more information about Internet safety education, visit www.usdoj.gov/psc and click on the tab “resources.” For more information about registered sex offenders in Idaho, visit www.isp.idaho.gov/sor_id/.
Mercury Ambulance Service, Inc. (Rural/Metro) Agrees to Pay $40,000 Fine to Settle Allegations of Violations of the Federal Controlled Substances ActRead the Press Release
LOUISVILLE, Ky. – Mercury Ambulance Service, Inc. (MAS), d/b/a Rural/Metro, has voluntarily reached an agreement today, with the United States of America, to pay $40,000 to settle allegations that it violated the federal Controlled Substances Act, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the settlement agreement, the United States contends that MAS failed to maintain accurate records concerning the acquisition, administration, transfer and disposal of controlled substances as required by persons who dispense legally-produced drugs, as required among other things, by the Controlled Substances Act.
Specifically, the settlement states that on February 16, 2012, the Drug Enforcement Administration’s Office of Diversion Control conducted an investigation of MAS and noted seven alleged violations. Among those noted by the investigation were a failure by MAS to report the theft of morphine to DEA within one business day of discovery, and a failure by MAS to prevent further diversion of controlled substances by failing to provide effective controls and procedures to guard against theft and diversion. Other alleged violations included the failure to complete or failure to properly complete DEA forms, and failure by MAS to complete a biennial inventory and to produce required records for an audit period.
This agreement is neither an admission of liability by Mercury Ambulance Service nor a concession by the United States that its claims regarding the covered conduct are not well-founded.
This investigation was handled by Assistant United States Attorney Benjamin S. Schecter and was investigated by the United States Drug Enforcement Administration and the U.S. Food and Drug Administration, Office of Regulatory Affairs, Office of Criminal Investigations.