Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 12 July 2013
Joshua Alan Blythe Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on July 12, 2013, before U.S. District Judge Dana L. Christensen, JOSHUA ALAN BLYTHE, a 27-year-old resident of Butte, was sentenced to a term of:
Prison: 50 months
Special Assessment: $100
Supervised Release: 3 years
BLYTHE was sentenced in connection with his guilty plea to conspiracy to distribute controlled substances.
In an Offer of Proof filed by Assistant U.S. Attorney Timothy J. Racicot, the government stated it would have proved at trial the following:
In early August 2011, law enforcement officers in Butte received information about a large quantity of prescription medication located at a local residence. The landlords of the residence evicted the tenants, including BLYTHE, and later found a white, five-gallon bucket and a small lunch cooler that were filled with various pills, and a metal box containing smaller boxes with a white, powdery substance.
The bucket of pills had "Stericycle," a bar code, and an SKU number on it. Stericycle is a medical waste disposal company in Butte. An investigating officer interviewed the manager of Stericycle, who said he was not aware of that particular bucket. The manager also confirmed that BLYTHE had been employed by Stericycle in the past, but had been terminated.
On August 16, 2011, agents interviewed BLYTHE about the bucket of pills found at his former residence. BLYTHE reported receiving the bucket from Wayne Partin and buying drugs from Partin for approximately three years, including oxycontin, hydrocodone, morphine, and methamphetamine. BLYTHE said that Partin had stolen the drugs from Stericycle and he described helping Partin move several containers of prescription pills from one residence to another in approximately July 2011. BLYTHE did not admit to helping Partin sell any of the pills in and around Butte.
Later on August 16, 2011, officers from Probation and Parole in Silver Bow County, along with the case agents, conducted a probation search of Partin's residence in Butte. During the search, officers seized a significant quantity of pills (controlled and non-controlled substances), Stericycle storage containers, sharps containers, needles, forceps, other medical waste, handwritten notes that appear to describe and identify pills, books used to identify pills, and a Hewlett-Packard Pavilion a6000 computer. A forensic examiner analyzed the computer and determined that between January 2010 and August 2011, Partin used the computer to conduct searches aimed at identifying various pills and prescription medication.
Law enforcement officers conducted several additional interviews after searching Partin's residence and at least two people told investigators that BLYTHE was helping Partin sell some of the pills that Partin had stolen from Stericycle.
Partin pled guilty to federal charges and has been sentenced.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that BLYTHE will likely serve all of the time imposed by the court. In the federal system, BLYTHE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the U.S. Department of Homeland Security - Homeland Security Investigations and the Butte-Silver Bow Law Enforcement Agency.
John Todd Scott Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on July 10, 2013, before Senior U.S. District Judge Wm. Fremming Nielsen, JOHN TODD SCOTT, a 29-year-old resident of Billings, was sentenced to a term of:
Prison: 60 months
Special Assessment: $100
Forfeiture: computer equipment
Supervised Release: 10 years
SCOTT was sentenced in connection with his guilty plea to receipt of child pornography.
In an Offer of Proof filed by Assistant U.S. Attorney Lori H. Suek, the government stated it would have proved at trial the following:
Law enforcement officers were investigating allegations of child pornography access by users utilizing the peer-to-peer file sharing network. One investigation involved a person in Billings who had child pornography available to share via a file sharing program. An undercover agent downloaded a number of child pornography files from that person on various occasions in 2011 and into 2012. A search warrant was obtained for the residence and served on September 6, 2012.
SCOTT was one of the occupants of the residence. When questioned, SCOTT admitted that he used the peer-to-peer file sharing programs to receive and possess thousands of child pornography videos and images. He detailed the search terms he used to find child pornography, how he saved it to various computers and other equipment, and how he had been doing so for a lengthy period of time.
Agents seized various computer equipment at SCOTT's residence. Subsequent forensic examination revealed thousands of images and movies of child pornography that SCOTT had received via the Internet for several years and continuing until the equipment was seized. SCOTT possessed images and movies of children clearly prepubescent and children engaged in sadistic or masochistic abuse or other depictions of violence.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SCOTT will likely serve all of the time imposed by the court. In the federal system, SCOTT does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
James Arthur Reynolds Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on July 10, 2013, before Senior District Court Judge Wm. Fremming Nielsen, JAMES ARTHUR REYNOLDS, a 55-year-old resident of Roundup, was sentenced to a term of:
Prison: 37 months
Special Assessment: $200
Supervised Release: 3 years
REYNOLDS was sentenced in connection with his guilty plea to being a felon-in-possession of a firearm.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
REYNOLDS had a felony conviction in 1985 in Virginia and multiple convictions from 1987 forward in Montana, therefore prohibiting him from possessing firearms.
On July 14, 2012, at 4:18 a.m., law enforcement received a report of a man sleeping in the ditch next to a motorcycle on a highway near Billings. Responding officers found REYNOLDS asleep and woke him. REYNOLDS reported that he had been driving home and became sleepy. In running his record, they found that REYNOLDS had a felony warrant for revocation on original charges of burglary and felony theft out of Beaverhead County and arrested him. Found on his person was a handgun magazine loaded with .45 caliber ammunition and a baggie of marijuana. REYNOLDS claimed he found the magazine lying on the ground in Billings, and that he did not have a firearm.
When questioned on July 18, 2012, REYNOLDS claimed that he found the .45 caliber handgun magazine on a table top while at a bar in Billings. He admitted that he was not to be in possession of firearms or ammunition given his felony record, but had friends who own .45 caliber guns and was planning to give it to one of them.
REYNOLDS then admitted that in fact he did own a .45 caliber handgun. REYNOLDS told how he was a "prospect" for the ".45s Motorcycle Club" in Roundup and in order to be a "prospect" and later a "fully-patched member," one had to own a .45 caliber gun. Because REYNOLDS could neither buy nor possess the .45, he had his friend, a "fully patched" member of the .45s Club, purchase the gun for him and he keeps it behind the bar at the "Clubhouse" in Roundup. REYNOLDS reported that his friend had purchased the gun for him approximately a month to six weeks before. REYNOLDS also admitted that he had both handled and shot the firearm, a Hi Point/Haskell Manufacturing, Model JHP, .45 caliber, semi-automatic pistol.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that REYNOLDS will likely serve all of the time imposed by the court. In the federal system, REYNOLDS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jacksonville Man Sentenced for Drug Distribution and Firearms ViolationRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court yesterday, Senior United States District Judge Malcolm J. Howard sentenced CORNELL ALLEN MELVIN, 28, to 200 months imprisonment, followed by a term of 6 years supervised release, a $5,000 fine and $200 special assessment. MELVIN received an enhanced sentence due to his criminal record and status as a career offender.
A Federal Grand Jury returned a nine-count Criminal Indictment on January 3, 2013. On April 9, 2013, MELVIN pled guilty to Distribution of a Quantity of Cocaine Base (Crack), in violation of Title 21, United States Code, Section 841(a)(1), and Possession of a Firearm by a Felon, in violation of Title 18, United States Code, Section 922(g)(1) and 924(a)(2).
According to the investigation, MELVIN engaged in drug trafficking and firearms violations in the Jacksonville area from at least March 2012 to June 2012. On six occasions, MELVIN sold cocaine base (crack) to a confidential informant operating under the direction of law enforcement. MELVIN also sold the confidential informant two firearms, one with an obliterated serial number. MELVIN had previously been convicted of numerous felony crimes and was prohibited from possessing a firearm.
This case was part of the Project Safe Neighborhoods initiative, which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and by the Jacksonville Police Department. Assistant United States Attorney Toby Lathan represented the government.
Jackson County Man Charged with Methamphetamine ConspiracyRead the Press Release
A Murphysboro, IL, resident was indicted on July 9, 2013, in an indictment, charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Larry J. Dowdy, Jr., 35, is charged with conspiracy to manufacture methamphetamine. The indictment alleges that the offense occurred between 2012 and March 2013 in Jackson County. Dowdy is scheduled to make his initial appearance in United States District Court in Benton on July 19, 2013.
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, Dowdy faces a term of imprisonment of up to 20 years, a $1,000,000 fine, and 3 years of supervised release.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, and Drug Enforcement Administration. The Carbondale Police Department also assisted in the investigation.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Jackson County Man Charged with Methamphetamine ConspiracyRead the Press Release
A Murphysboro, IL, resident was indicted on July 9, 2013, in an indictment, charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
On July 11, 2013, Michael R. Jines, a/k/a “Mikey” and “Pill Mike,” 32, was arraigned in United States District Court in Benton on an indictment charging conspiracy to manufacture methamphetamine. The indictment alleges that the offense occurred between January 2013 and June 2013 in Jackson County. Jines is currently being held without bond pending a July 16, 2013, detention hearing.
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, Jines faces a term of imprisonment of up to 20 years, a $1,000,000 fine, and 3 years of supervised release.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, and Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Houston Man Detained on Child Pornography ChargesRead the Press Release
HOUSTON – Roger Dean Matice, 71, of Houston, has been ordered into custody on charges of possession and distribution of child pornography, United States Attorney Kenneth Magidson announced today.
Matice was indicted on June 19, 2013. Today, U.S. Magistrate Judge George C. Hanks Jr. ordered him detained pending further criminal proceedings.
The investigation revealed Matice was allegedly making child pornography available to others through the use of peer-to-peer software over the Internet. A task force officer chatted with Matice online and allegedly received images of child pornography from him during those interactions. The chats and downloads were traced to both Matice’s place of business and his home, according to the allegations.
Search warrants were issued for both locations, at which time computers were seized and analyzed. According to court records, more than 22,500 images and 470 videos containing child pornography were found. These images allegedly included children under 12 being sexually violated by adults, children under 12 in positions which caused their genitalia to be displayed in a lewd/lascivious manner, as well as children being penetrated by a foreign object.
Matice faces a minimum of five and up to 20 years imprisonment for distribution of child pornography as well as a maximum of 10 years in prison for possession of child pornography. Both charges also faces a possible $250,000 fine, upon conviction.
The charge was the result of an investigation conducted by the FBI Innocent Images Task Force which includes members of the Harris County Sheriff’s Office.
This case, prosecuted by Assistant United States Attorney Sherri L. Zack, 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."
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Houston Man Convicted of Lying and Buying FirearmsRead the Press Release
HOUSTON – Kenny Davalos, 24, of Houston, has entered a plea of guilty to conspiracy to make and making a false statement to a federal firearms licensee (FFL), United States Attorney Kenneth Magidson announced today.
Davalos was arrested along with three others in May 2013. Charles Smith, 27, Ashley Phlegm, 26, and Dyneisha Jackson, 28, all of Houston, have all also pleaded guilty and are pending sentencing.
The investigation into the conspiracy was initiated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in November 2012. During the course of the investigation, ATF learned Davalos had originally contacted Smith about buying guns for him to send to Mexico, but Smith refused due to his status as a convicted felon. However, Smith put Davalos in contact with Jackson (Smith’s sister) and Phlegm (Smith’s fiancée), whom Davalos paid $200 each to purchase a total of seven firearms for him to send to Mexico.
In late October 2012, a GP WASR-10 7.62x39mm rifle was discovered during a raid on members of a drug trafficking organization in Monterrey, Nuevo Leon, Mexico. ATF agents traced the weapon to Jackson who purchased it on Sept. 28, 2012, from Collectors Firearms, an FFL in Houston. Jackson also admitted to purchasing a DPMS A-15 rifle from the same FFL in August 2012 and a Beretta Model: 92FS pistol in September 2012 from Carters Country in Houston.
Phlegm and Smith admitted to purchasing a total of four guns for Davalos - a Bushmaster Carbon 15 rifle, two Romarm GP WASR-10/6 rifles and a FN Fabrique National pistol.
Agents intercepted Jackson buying a Romarm Model WASR 10/63 semi-automatic rifle and delivering it to Davalos. Upon his arrest, agents found five rounds of .223 live ammunition, 20 rounds of 7.62x39 Tulammo live ammunition and one empty Glock box for a .40 caliber Glock Model 22 along with $1,340 in cash and a Mexican identification card.
Davalos will remain in custody pending sentencing, which has been set for Oct. 3, 2013, at 2:00 p.m.
Assistant U.S. Attorney Megan J. Paulson is prosecuting this case.
Houston Man and His Father Head to Prison for Debt Relief ScamRead the Press Release
HOUSTON - Nathaniel Chilo, aka Nathaniel O’Neil, 23 of Houston, has been sentenced to prison for his role in perpetuating a debt relief scam with his father, United States Attorney Kenneth Magidson announced today. Chilo pleaded guilty Sept. 21, 2012, admitting that between September 2009 and September 2010, he assisted his father, Jeffery Wayne O’Neil, 55, of Houston, in promoting a number of debt relief/elimination schemes to individuals throughout the United States.
Today, U.S. District Judge Ewing Werlein Jr., who accepted the guilty plea, handed Chilo and O’Neil respective sentences of 70 and 78 months. Chilo was ordered to pay restitution in the amount of $130,176.09, while his father will pay $661,980.95. Both will serve three years of supervised release following completion of their sentences. In handing down the sentence, Judge Werlein noted the plight of the victims, hard pressed by bankruptcy, credit card debt and out of jobs thinking that O’Neil was going to help them.
O’Neil admitted that between June 2005 and Sept. 7, 2010, he promoted a number of debt relief/elimination schemes to individuals throughout the United States. He operated various debt relief businesses in the Houston area under different names including, but not limited to, J. O’Neil/Associates Inc., World Outlook, World Outlook Management (WOM) and Universal Restoration, none of which were licensed by the Texas Office of Consumer Credit Commissioner, according to court documents.
O’Neil made numerous false representations to his “clients” and used a program called the “Debt Reconciliation Program” or “Debt Relief Program,” referred to as “DRP,” charging each client a percentage of debt as a fee for participating in the DRP. The basis of the DRP was that once a creditor cashed a check with an attached novation agreement from WOM, one of O’Neil’s businesses, the creditor was then allegedly agreeing to accept that novation agreement and look to only WOM for payment of the debt.
O’Neil admitted that in June 2009, he caused two individuals to send a cashier’s check to WOM by Federal Express to pay for their participation in the DRP and to also sign assignments of debt, assigning a credit card debt to WOM. He further caused one of these individuals to sign a novation agreement for that debt. O’Neil admitted that he fraudulently led these individuals to believe that by their signing the assignment of debt, execution of the novation agreement and their payment to WOM to participate in O’Neil’s DRP program their debt would be eliminated when it did not.
At the time of conviction in this case, Chilo admitted he knowingly made false representations to individuals seeking debt relief through various programs offered by Jeffery O’Neil. He further admitted that on Feb. 4, 2010, he filed an assumed name for a business by the name of Universal Restoration in Ft. Bend County which would allegedly provide relief from various types of debt. Chilo admitted he caused an individual on or about July 12, 2010, to wire transfer $5600 from that person’s bank account in Arizona to the bank account for Universal Restoration in Houston. The transfer was made as a result of Chilo’s representation that he had negotiated a settlement of a debt owed by that person to Navy Federal Credit Union. According to Chilo’s representation, this person was to pay 40% of the settlement amount and Universal Restoration would pay the remaining 60%. Chilo admitted he paid no money to Navy Federal Credit Union on that person’s behalf to settle the debt. Finally, Chilo admitted that the settlement offer he made was fraudulent and that Navy Federal Credit Union never authorized the settlement.
Chilo will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. O’Neil was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney John Braddock.
Hilda Sue Lewis Towe Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on July 11, 2013, before U.S. District Judge Dana L. Christensen, HILDA SUE LEWIS TOWE, a 35-year-old resident of Hamilton, was sentenced to a term of:
Probation: 5 years
Special Assessment: $200
Restitution: $32,181.01
TOWE was sentenced in connection with her guilty plea to theft of federal government money and making false statements.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
Between March 2009 until approximately January 2012, TOWE received $21,868.01 in Supplemental Security Income (SSI) to which she was not entitled.
TOWE made false statements in a written document by misrepresenting the composition of her household, employment status, and the amount of income received to support the household. She did so deliberately with the knowledge the statements were untrue.
In a June 2012 interview, she admitted she knew her legal reporting requirements for SSI and for serving as a representative payee. She admitted to purposely concealing material facts such as living arrangements and income. She stated that she knew if she accurately reported the status of those items it would effect her SSI eligibility. Finally, she stated that she purposely concealed facts from the Social Security Administration in order to continue receiving payments.
The investigation was conducted by the Social Security Administration - Office of Inspector General.
Hardin County, Kentucky Man Guilty of Impersonating A Soldier for Financial GainRead the Press Release
LOUISVILLE, Ky. – A Hardin County, Kentucky, man pleaded guilty in United States District Court today, before District Judge John G. Heyburn II, to charges of pretending to be an officer of the United States, wire fraud, making false statements or representations, and entering government property under false pretenses for the purposes of committing a felony, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Jonathan Wade Short, age 23, despite being a civilian with absolutely no record of service in the armed forces of the United States, admitted to falsely impersonating a United States soldier for a period between March 8, 2012, until December 7, 2012.
Further, during August 2012, Short admitted in court to meeting A.V., the daughter of a retired member of the armed forces, on a social networking site where he falsely claimed to be a highly decorated soldier, who had been on multiple deployments, and received high military honors (including the Purple Heart). Approximately one month later, when the two met for the first time in person, Short, dressed in a complete Army Combat Uniform (ACU) wearing the rank of Sergeant, a Combat Infantryman Badge, and Parachutists Badge, Combat Patch, and a Ranger tab. While dating A.V. in Daviess and Hardin Counties and elsewhere, Short, who was accompanied by A.V., repeatedly demanded and obtained financial benefits and discounts only entitled to current and former members of the armed forces of the United States. Short possessed at least seven Army Dress Uniforms, with accompanying ribbons, badges, and medals, and wore them in public and on social networking sites as part of his continuous effort to impersonate a decorated combat veteran.
Between October 6, 2012, and approximately November 16, 2012, in Hardin County, defendant Short, did repeatedly ask A.V. to send him money under the false premise that he needed money to help defray the expenses related to his son’s emergency medical treatment at Kosair Children’s Hospital in Louisville, Kentucky. Short actually had no son who was ill or hospitalized. In fact, he demanded the money from A.V. in order to exploit A.V.’s belief he was a noble soldier in a desperate family and financial situation. During the two month period, A.V. gave Short nearly $1,000.
On or about December 7, 2012, Short admitted to A.V. he was not a Soldier and that he solicited money from her based upon false pretenses. Moreover, he refused to return the solicited funds upon A.V.’s request. Further, on or about October 11, 2012, at Fort Knox, Kentucky, in the exclusive territorial jurisdiction of the United States, Short was apprehended once Military Police at Fort Knox for attempting to impersonate a Soldier. Once an investigation revealed the extent of his fraud, he was apprehended and detained by the Federal Bureau of Investigation near Springfield, IL. If convicted at trial, Short faced a possible combined maximum term of 23 years in prison, a combined maximum fine of $500,000 and a ten year term of supervised release. Sentencing is scheduled for September 15, 2013, at 1:00 pm, in Louisville, before Judge Heyburn.
This case is being prosecuted by Special Assistant United States Attorney Milton A. Turner and was investigated by the Federal Bureau of Investigation.
Former Charlotte Attorney Pleads Guilty Mid-Trial to Mortgage Fraud Related ChargesRead the Press Release
Lawyer Was Among 91 Defendants Charged in Operation Wax House
CHARLOTTE, N.C. – A former Charlotte lawyer pleaded guilty mid-trial on Wednesday, July 10, 2013, to mortgage fraud related charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. The former lawyer’s plea of guilty is the latest conviction in Operation Wax House, a mortgage fraud investigation which began in 2007 and has netted 91 defendants to date, 72 of which have pleaded guilty.
Michelle V. Mallard, 46, of Charlotte, pleaded guilty to mortgage fraud conspiracy, money laundering conspiracy and embezzlement in violation of the wire fraud statute.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI).
Mallard’s federal criminal trial began on Monday, July 8, 2013, before Chief U.S. District Judge Frank D. Whitney. Mallard, a/k/a Michelle Crawford, was charged with embezzlement and with serving as a mortgage fraud lawyer for a mortgage fraud cell in the Operation Wax House investigation. According to evidence introduced at trial, Mallard agreed to use her law license to further mortgage fraud primarily in South Charlotte and Waxhaw, N.C. According to trial testimony, the co-conspirators purchased houses at inflated prices in exchange for large kickbacks representing the difference between the true price and the inflated price. Trial witnesses testified that Mallard agreed to pay such kickbacks to other members of the conspiracy and, among other things, accepted bogus checks to make it appear as though buyers had provided money when they had not. According to trial evidence and statements made by the prosecutors, Mallard participated in the mortgage fraud after having stolen over $30,000 from clients by embezzling from her trust account.
Following the presentation of evidence by the government on Monday and Tuesday, Mallard announced to Judge Whitney on Wednesday that she wished to change her plea from “not guilty” to “guilty” on all the counts she was charged with in a second superseding indictment returned by a Charlotte grand jury in September 2012. The remaining five defendants charged in that indictment have already pleaded guilty and are included in the list of defendants below.
Following her guilty plea, Mallard was released on bond pending the scheduling of her sentencing hearing. At sentencing, Mallard faces a maximum prison term of 70 years. In determining Mallard’s actual sentence, the Court will consider the U.S. Sentencing Guidelines, which are not binding but provide advisory sentencing ranges. A sentencing date for the defendant has not been set yet.
Operation Wax House in the Western District of North Carolina is being handled by the Charlotte Division of the FBI and the Criminal Division of the IRS for the Financial Fraud Enforcement Task Force, along with the Securities Division of the North Carolina Secretary of State with respect to a separate prosecution. The Mallard prosecution for the government was being handled by Assistant United States Attorneys Kurt W. Meyers and Maria K. Vento.
Today’s announcement is part of an effort by President Obama’s Financial Fraud Enforcement Task Force (FFETF), created in November 2009, to combat financial fraud crimes by waging aggressive, coordinated and proactive investigations and prosecutions. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, the task force is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The names and case numbers of the all the defendants charged to date in Operation Wax House are listed below, organized by their alleged role in the scheme.
Attorneys and Paralegals
Crawford/Mallard, Michelle 3:11cr374
Gates, Christine 3:09cr100
Norwood, Kelli, 3:09cr162
Rainer, Demetrius 3:08cr239/241
Smith, Troy, 3:08cr264Bank Insiders
Brown, Jamilia, 3:10cr124
Eason, Danyelle, 3:10cr116
Henson, Vic. F., 3:10cr124
Jackson, Mitzi, 3:11cr374
Ramey, Bonnie Sue, 3:10cr124Builders and Sellers
Fink, James, 3:11cr374; 3:12cr239
Jackson, Jennifer, 3:09cr241
Smith, Kelvis, 3:12cr238
Viegas, Jeffrey, 3:12cr298
Wittig, Mark, 3:12cr335
Wood, Gary, 3:09cr208Facilitators and Financiers
Hickey, Denis, 3:09cr103
McClain, Landrick, 3:10cr124
Mitchell, Ann Tyson, 3:12cr239
Panayoton, Sherrill, 3:11cr176
Taylor, Alicia Renee, 3:10cr124
Wilson, Willard, 3:09cr161Buyers
Banks, Arketa, 3:12cr297
Clark, Benjamin, 3:12cr239
Hillian, Kirk, 3:12cr83
Mathis, Charles, 3:10cr1
Mobley, Sarena, 3:10cr124
Moore, George, 3:12cr337
Richards, Dan, 3:10cr119
Smith, Kevin, 3:12cr341
Tyler, Glenna, 3:11cr200
Vaughn, Mary, 3:12cr329
Wallace, Jamaine, 3:12cr330
Wellington, William, 3:12cr333Notary Public
Willis, Anthony, 3:09cr218Appraiser
Darden, Clinton 3:10cr108Mortgage Brokers
Bradley, Bonnette, 3:12cr299
Clarke, Linda, 3:10cr120
Flood, Ericka, 3:10cr124
Goodson-Hudson, Crystal, 3:12cr339
Mahaney, Robert, 3:12cr34-0
Scagliarini, Coley, 3:11cr374
Staton, Walter, 3:10cr113
Vaughn, Danielle, 3:12cr329
Williams, Marcia, 3:12cr334
Williams, Sean, 3:12cr336
Woods, Joseph, 3:09cr178Real Estate Agents
Belin, Chris, 3:11cr374
Clark, Christina, 3:09cr44
Lee, Shannon, 3:12cr338
Pasut, Holly Hardy, 3:12cr331
Wolf, Nathan Shane, 3:12cr239
Wood, Gary, 3:09cr208Promoters
Amini, Ramin, 3:12cr239
Barnes, Vonetta Tyson, 3:12cr239
Brown, William, 3:12cr239
Bumpers, Travis, 3:12cr239
Carr, Stephen, 3:10cr124
Clarke, Benjamin, 3:12cr239
Clarke, Reuben, 3:10cr120
Coleman, Gregory, 3:10cr118
DeSimone, Frank, 3:12cr239
Dooley, Lorie, 3:12cr239
Hitchcock, Jimmy, 3:11cr374
Hubbard, Glynn, 3:12cr239
Hunt, Victoria, 3:12cr239
Hunter, Toby, 3:12cr239
Johnson, Ralph, 3:12cr239
Jones, Steven, 3:12cr239
Jones, Tyree, 3:10cr230
Long Waylon, 3:12cr239
Marshall, Michael, 3:07cr283
McDowell, John, 3:12cr239
McPhaul, Elizabeth, 3:10cr114
Mehr, Kurosh, 3:12cr239
Mitchell, Ann Tyson, 3:12cr239
Moye, Melvin, 3:12cr239
Myles, Denetria, 3:12cr239
Newland, Matthew, 3:12cr239
Perry, John Wayne, Jr., 3:12cr239
Perry, Kim, 3:10cr25
Phillips, Rick, 3:10cr115
Saddig, Nazeere, 3:12cr239
Sharreff-El, Drew, 3:10cr124
Sherald, Kiki, 3:10cr117
Simmons, Aaron, 3:09cr240
Snead, Todd, 3:10cr124
Staton, Lisa, 3:10cr113
Thorogood, Donte, 3:12cr239
Tyson, Carrie, 3:12cr239
Tyson, James, Jr. 3:12cr239
Tyson, James, Sr., 3:12cr239
Wellington, Phillip, 3:12cr332
Wood, Purnell, 3:12cr239Former Big Spring, Texas, Man Sentenced to 15 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas — Christopher Aubrey Harlan, 27, formerly of Big Spring, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 15 years in federal prison, to be followed by eight years of supervised release, following his guilty plea in March 2013 to one count of receiving child pornography. Judge Cummings ordered that Harlan surrender to the Bureau of Prisons on August 16, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Harlan used his computer, as well as for a brief time, his roommate’s computer, to access child pornography on various websites. He used those computers, as well as his cellphone, to send and receive numerous images of child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Big Spring Police Department. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Former Arkansas Scholarship Lottery Deputy Director Pleads Guilty to Wire Fraud and Money LaunderingRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office announced today that, in a hearing held before U.S. District Judge Susan Webber Wright, Remmele Mazyck, 34, of Bryant, Arkansas, pled guilty to one count of wire fraud and one count of money laundering. The charges relate to a scheme to defraud the Arkansas Scholarship Lottery.
As deputy director of security for the Arkansas Scholarship Lottery, Mazyck had access to packages of promotional lottery tickets, which the lottery routinely gave away at large-scale events such as festivals, fairs, and retailer rallies. Beginning in or about December 2009 through October 2012, Mazyck took lottery tickets from the Arkansas Scholarship Lottery vendor’s warehouse for his personal use. He would assign the tickets to retailers no longer selling tickets, and then use his position as deputy director of security to log into the Arkansas Scholarship Lottery’s software program to change the tickets from “Available-Virgin” to “Promotional.” This change activated the tickets and allowed Mazyck to cash any winning tickets. To hide the scheme, Mazyck would then log into the software and change the status of all the losing tickets to “Voided by Security”. In total, Mazyck received approximately $477,893.00 from the scheme.
“In attempting to beat the odds for winning in the Arkansas Scholarship Lottery, Mazyck stole funds that could have gone to another future student,” stated Thyer. “Odds are, when you choose to use illegal means to increase your winnings, you will lose.”
“Public officials, whether elected or appointed, hold positions of trust in the eyes of the public. That trust is broken when these officials commit crimes. No public official gets a free pass,” stated Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office. “The IRS enforces the nation's tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others. With both law enforcement and financial investigation expertise, our agents are uniquely qualified to assist state and federal law enforcement agencies with these types of cases by following the money. We are pleased with the successful resolution of this investigation due to the cooperative efforts of our law enforcement partners."
Mazyck faces a maximum penalty of 20 years in prison and a fine of $250,000.00 when he is sentenced. The sentencing date will be set by the Court at a later date.
This investigation was conducted by IRS-Criminal Investigation and the Arkansas State Police. The case is being prosecuted by Assistant United States Attorneys Jana Harris and Cameron McCree .
An indictment contains only allegations. The defendant is presumed innocent unless and until proven guilty.
Florida Man Convicted of Selling Stolen Art and Evading the Payment of Federal Income Taxes Sentenced to 7½ Years in PrisonRead the Press Release
LOS ANGELES – A Florida man who sold paintings stolen from a Los Angeles art gallery – and who took elaborate steps to avoid paying taxes over several years – has been sentenced to 90 months in federal prison for the art-related and tax offenses.
Matthew Taylor, 45, of Vero Beach, Florida, was sentenced yesterday afternoon by United States District Judge John A. Kronstadt.
In addition to the prison term, Judge Kronstadt ordered Taylor to pay $1,244,190 in restitution – $106,152 to two art galleries, and $1,138,038 to the Internal Revenue Service for back taxes, penalties and interest. The judge also ordered that during the period of supervised release following his prison term, Taylor may not work in or own “any business involving antiques and or art” without the approval of a probation officer.
Taylor was found guilty by a federal jury in August 2012 of five separate federal felonies, including wire fraud, possession of stolen property which had crossed state lines, and two counts of tax evasion for the years 2005 and 2006. The jury also convicted Taylor of structuring cash transactions to avoid federal reporting requirements by making $226,000 in cash withdrawals in smaller amounts so as to avoid possible seizure of the funds by authorities – and found that he committed the structuring offense while free on bond in the art fraud case.
The evidence presented at trial showed that Taylor stole several paintings from the Los Angeles Fine Art Gallery, including a Granville Redmond painting called “Seascape at Twilight” and an untitled painting by Lucien Frank. Taylor later sold the Redmond painting to a different gallery for $85,000, falsely claiming that his mother had owned it for several years. Taylor took the Frank painting to Florida, erased Frank’s signature from the artwork, and then attempted to sell the painting to an art collector, claiming it was by a different artist.
The evidence presented at trial also showed that Taylor took elaborate steps to evade paying more than $400,000 in federal income taxes owed for 2005 and 2006, including creating bogus companies with names similar to well known companies (like Microsoft), using false social security numbers to hide his bank accounts, and using post office boxes to open other post office boxes to use as mail drops. Taylor also moved money to an off-shore bank account in the Bahamas as part of his attempts to evade the payment of taxes. Taylor falsely claimed that his mother had controlled all of his bank accounts and LLCs, and that he had relied on her to file tax returns for him – even though she was in failing health and suffering from dementia.
Taylor’s “repeated attempts to blame his mother for his crimes are demonstrative of his history and characteristics,” prosecutors wrote in a sentencing memo filed with the court. “In short, defendant has demonstrated that he is a con man, a thief, a tax-cheat, and a liar, who has no compunctions about using others (such as his girlfriend) and blaming others (such as his mother or his pretrial officer) if it is to his advantage. He has steadfastly refused to accept responsibility for his crimes, and has repeatedly acknowledged that he moved money around to avoid seizure by the IRS.”
The investigation into Taylor was conducted by the FBI’s Art Crime Team, the Los Angeles Police Department’s Art Theft Detail, and IRS Criminal Investigation.
Release No. 13-095a
Federally-Sponsored Statewide Rapid Response Training to Be Held in Grand RapidsRead the Press Release
GRAND RAPIDS, MICHIGAN – The U.S. Attorney’s Offices for the Eastern and Western Districts of Michigan, along with the Federal Bureau of Investigation (FBI) and the Grand Rapids Public Schools, will be hosting Advanced Law Enforcement Rapid Response Training (ALERRT) next week. The training will be held at Pine School in Grand Rapids from July 15-18, 2013. The training is presented by Texas State University through funding by a number of government sources and is offered at no cost to participants. The training offered in Grand Rapids is a partnership between the FBI, the Bureau of Justice Assistance, VALOR, Texas State University and the United States Attorney Offices in Eastern and Western Michigan. The Advanced Law Enforcement Rapid Response Training Center at Texas State University has partnered with the FBI to deliver this vital active shooter training across the nation. ALERRT has trained more than 45,000 officers in the United States since 2002 through federal and state funding.
This training lasts two days and involves both classroom work and practical exercises. The first session is for Law Enforcement Departments from the Eastern District of Michigan and it will be held July 15-16, 2013. The second session is for Law Enforcement Departments from the Western District of Michigan and will be held July 17-18, 2013. Each session will have approximately 30 officers from 20 departments, allowing about 60 officers from over 40 departments to be trained over the four day period. The United States Attorney Offices and the FBI are particularly grateful to the Grand Rapids Public Schools for allowing the use of Pine Elementary School for this important training.
The U.S. Attorney for the Western District of Michigan, Patrick A. Miles, Jr., stated “Unfortunately no community is immune from a potential active shooter situation. This training in Grand Rapids is so law enforcement is ready if it does.”
Robert D. Foley III, Special Agent in Charge of the FBI Detroit Field Office added, “The FBI is proud to partner with the U.S. Attorney Offices in the Eastern and Western Districts along with other agencies to offer this valuable training designed to save lives during active shooter situations. The F.B.I. is committed to ensuring the safety of citizens and protecting our communities.”
Barbara L. McQuade, U.S. Attorney for the Eastern District of Michigan stated, “This training will better equip officers in Michigan to respond to an active shooter situation, which we have seen can occur at any time or any place.”
Larry Johnson, Assistant Superintendent and Executive Director of Public Safety for Grand Rapids Public Schools said, "As a district, we are committed to comprehensive, ongoing training and emergency preparedness to ensure our professional staff are well equipped to handle the most difficult situations. It is truly an honor for us to partner with the U.S. Attorney's Offices and the FBI on this important training by making one of our schools available and to having some of our staff members participate."
If the media is interested in receiving additional information regarding this training, please contact Kaye Hooker at 616-560-6512. There will be an opportunity for the media to meet with instructors, learn about the training and take some still shots on Thursday, July 18, 2013 at 12:30 p.m.
END
Federal Jury Finds Shiprock, N.M., Man Guilty on Involuntary Manslaughter, Assault and Firearms ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque, N.M., returned a guilty verdict this afternoon against Clay O’Brien Mann, 28, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., on involuntary manslaughter, assault and firearms charges after a five-day trial. The guilty verdict was announced by U.S. Attorney Kenneth J. Gonzales, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and John Billison, Director of the Navajo Nation Division of Public Safety.
Mann was arrested in July 2010, on a criminal complaint alleging that he killed a Navajo man and assaulted another Navajo man and a Navajo woman with a dangerous weapon on the Navajo Indian Reservation, on July 24, 2010. Mann subsequently was indicted and charged with first degree murder, two counts of assault with a dangerous weapon with intent to do bodily injury, two counts of assault resulting in serious bodily injury, and three counts of discharging a firearm in furtherance of an act of violence. Proceedings in the case were delayed by competency proceedings.
Trial of the case began on July 8, 2013, and concluded earlier this afternoon when the jury returned a verdict finding Mann not guilty on the first degree murder charge but guilty on the lesser included charge of involuntary manslaughter. The jury also found Mann guilty on two counts of assault resulting in serious bodily injury and two counts of discharging a firearm in furtherance of an act of violence. It acquitted Mann on two counts of assault with a dangerous weapon with intent to do bodily injury and the third firearms charge.
The evidence at trial established that, at approximately 4:00 a.m. on July 24, 2010, an inebriated Mann drove his car to his neighbor’s property and launched an artillery shell into the neighbor’s property where the neighbor and his friends were socializing. When Ames Joseph Jim and another man and a woman walked over to see what was going on, Mann fired a semi-automatic rifle at them, shooting Mr. Jim in the face and heart, the other man in the face and the woman in the neck. Mr. Jim died as a result of his injuries and the other two victims sustained serious bodily injury.
Mann has been in federal custody since his arrest in July 2010, and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Mann faces a maximum eight years in prison on the involuntary manslaughter charge and a maximum ten years in prison on each of the two assault charges. Mann also faces a mandatory 35 years in prison on the two firearms charges which must be served consecutive to any prison sentence imposed on the involuntary manslaughter and assault charges.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Presiliano A. Torrez.
East St. Louis Man Sentenced for Filing A False Federal Income Tax ReturnRead the Press Release
Demetrius L. Combs, 22, of East St. Louis, Illinois, was sentenced to five years of probation, six months home detention and ordered to pay restitution to the Internal Revenue Service in the amount of $2662 for the offense of Filing a False Federal Income Tax Return, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Combs had a false and fraudulent 2010 federal income tax return prepared by Prime Time Tax Services. Delaun Leflore and Carey Herron owned and operated Prime Time Tax Services (PTTS) located in Shiloh, Illinois. During the 2008-2011 filing seasons, Leflore and Herron used electronic software to prepare and file tax returns and they typically applied for refund anticipation loans. Leflore and Herron conspired together and with their clients to prepare false tax returns and claim fraudulent tax refunds. To accomplish this scheme, Leflore and Herron created false and fraudulent Schedule C income and expenses. The purpose of creating the false income was to maximize the earned income credit and other credits which generated large tax refunds. While meeting with their clients, Leflore and Herron discussed how to receive more money back by creating self-employment income. The clients agreed to participate in the scheme in order to receive a larger tax refund. Typically, the clients were referred to Leflore and Herron and visited the tax preparation business knowing they would file fraudulent tax returns. As part of the scheme, the clients were required to pay an extra cash fee to Leflore or Herron from the tax refund received. This amount was generally $500 in cash. This amount was in addition to the tax preparation fee which was automatically deducted from the tax refund by the bank processing the refund anticipation loan (RAL). Following the receipt of the RAL check, Leflore, Herron, or another representative of PTTS escorted the clients to a local check-cashing business named Belleville Quick Stop located in Belleville, Illinois. After the client cashed the RAL check, the client immediately gave the $500 in cash to Leflore, Herron, or another representative of Prime Time. Leflore and Herron have already been prosecuted and are serving their prison sentences.
The successful prosecution is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations. The prosecution was handled by Assistant U.S. Attorney Norman R. Smith.
Eagle Butte Man Pleads Guilty to Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that Sylvan Charles Brown III, age 30, of Eagle Butte, South Dakota, appeared before U.S. District Judge Roberto A. Lange on July 11, 2013, and pled guilty to Count II of the Indictment that charged him with Distribution of a Controlled Substance.
The maximum penalty upon conviction is 20 years of imprisonment, a $1,000,000 fine, or both; a mandatory period of 3 years up to life of supervised release, an additional 2 years of supervised release upon revocation; and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from an incident on November 14, 2012, when Brown distributed methamphetamine. The suspected methamphetamine was sent to the lab for analysis and tested positive.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Brown was remanded to the custody of the U.S. Marshals Service pending sentencing which has been set for September 30, 2013.
# # #Eagle Butte Man Pleads Guilty to Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that Colton White Feather, age 18, of Eagle Butte, South Dakota, appeared before U.S. District Judge Roberto A. Lange on July 11, 2013, and pled guilty to the Indictment that charged him with Assaulting a Federal Officer.
The maximum penalty upon conviction is 8 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release, and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The conviction stems from an incident on or about November 23, 2012, when two Cheyenne River Sioux Tribal Police Officers were called to the defendant’s residence in Eagle Butte to respond to a fight between White Feather and another person. After arriving and being let into the house, one of the officers had contact with the defendant in a back bedroom. During that contact, the defendant became upset when he learned he was going to be arrested for underage consumption, and to avoid arrest he had physical contact with the officer. At the time of the unlawful assault, the police officer was engaged in the performance of his official duties as law enforcement.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson prosecuted the case. White Feather was remanded to the custody of the U.S. Marshals Service pending sentencing which has been set for September 30, 2013.
# # #Dustin Roy Gilpin Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on July 11, 2013, before Chief U.S. District Judge Dana L. Christensen, DUSTIN ROY GILPIN, a 33-year-old resident of Kalispell, was sentenced to a term of:
Probation: 5 years
Special Assessment: $100
GILPIN was sentenced in connection with his guilty plea to receipt of obscenity.
In an Offer of Proof filed by Assistant U.S. Attorney Cyndee L. Peterson, the government stated it would have proved at trial the following:
As part of an Internet Crimes Against Children Task Force investigation, a Madison County Deputy Sheriff determined an IP address in Kalispell was offering known child pornography files available for download via the Internet. The subscriber information for that IP address was GILPIN'S residence. The Flathead County Sheriff's Office obtained a search warrant for that residence.
On July 3, 2012, the warrant was served, and two generic desktop computers were seized and subsequently forensically examined.
On the first computer the examiner located image files which depict obscene matters of indecent character, specifically children engaged in sexual conduct. The examiner determined that some of the files were associated with the peer-to-peer file sharing program LimeWire. The examiner also determined the files were created between May 2012 and July 2012.
On the second computer the examiner located image files which depict obscene matters of indecent character, specifically children engaged in sexual conduct. The examiner determined these files were also associated with the peer-to-peer file sharing program LimeWire. The files were created between September 29, 2011, and March 13, 2012.
The investigation was a cooperative effort between the Internet Crimes Against Children (ICAC) Task Force, the Madison County Sheriff's Office, the Flathead County Sheriff's Office, and the Montana Division of Criminal Investigation.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
District Man Found Guilty of Second-Degree Murder While Armed in 2012 Slaying in Northwest Washington-Defendant Stabbed Victim During Confrontation on Street-Read the Press Release
WASHINGTON – Herbert G. Hayes, 41, of Washington, D.C., was found guilty by a jury today of second-degree murder while armed in a slaying that took place last year in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Hayes was found guilty by a jury following a trial in the Superior Court of the District of Columbia. The Honorable Russell F. Canan scheduled sentencing for Sept. 20, 2013. Hayes faces a statutory maximum of 40 years in prison for the crime.
According to the government’s evidence, on May 18, 2012 at about 9:30 p.m., Hayes chased the victim, John Wesley Griffin, 42, down the sidewalk in the 1200 block of North Capitol Street NW. As the chase continued, Mr. Griffin yelled, “Police, police!” Mr. Griffin ran into the street and Hayes followed him. Mr. Griffin then turned and faced Hayes, putting up his fists to fight. At that point, Hayes stabbed him. Mr. Griffin staggered to the sidewalk and then collapsed. Hayes stood over him, and with knife in hand, shouted an expletive about the police before fleeing the scene. Mr. Griffin died as a result of his wounds.
Hayes was arrested on May 21, 2012, and has been in custody ever since.
In announcing the verdict, U.S. Attorney Machen praised the work of the detectives, officers and mobile crime scene technicians who investigated the case for the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Mia Beamon, Victim/Witness Advocate Tamara Ince; Litigation Technology Specialists Kimberly Smith and Ron Royal, and Interns Daniel Fletcher and Lauren Sparks. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Melinda Williams and former Assistant U.S. Attorney Mary Chris Dobbie, who secured the indictment in the case, and Assistant U.S. Attorney Adrienne Dedjinou, who prosecuted the case.
13-243Court Approves Comprehensive Assignment Plan in Longstanding Tennessee Desegregation CaseRead the Press Release
Today, the U.S. District Court for the Western District of Tennessee approved a comprehensive consent order in McFerren v. County Board of Education of Fayette County, which the Department of Justice negotiated with the Board of Education of Fayette County, Tenn., and the NAACP Legal Defense & Educational Fund to desegregate the Fayette County public schools.
The consent order requires the district to take the following steps:
· Close four of its seven elementary schools, including a racially identifiable white school and two racially identifiable black schools.
· Construct a new elementary school to be opened by the start of the 2014-15 school year.
· Revise its attendance zone lines.
· Implement a controlled choice program between two of its schools.
· Explore and possibly create a magnet program at the elementary school with the highest projected African-American enrollment.
· Continue intra-district student transfers that further desegregation among its schools.
Today’s consent order replaces a previous consent order approved in 2012, as part of a collective effort by the parties to ensure even greater desegregation of the schools while achieving financial savings for the district. Before it can be declared unitary, the district must comply in good faith with its desegregation obligations for a minimum of three years, until the end of the 2016-17 school year, and eliminate the vestiges of segregation in its schools.
“The parties’ diligence and creativity resulted in meaningful progress towards desegregation of the schools,” said Jocelyn Samuels, Principal Assistant Attorney General for the Civil Rights Division. “Their efforts demonstrate that a district can desegregate its schools in a fiscally responsible manner that ensures educational opportunities for all students.”
The enforcement of Title IV of the Civil Rights Act of 1964 in school districts is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Contrack International Inc. Agrees to Pay<br /> $3.5 Million to Resolve False Claims Act AllegationsRead the Press Release
Contrack International Inc., a global design and construction company headquartered in McLean, Va., has agreed to pay $3.5 million to settle allegations that it submitted false claims in connection with U. S. Agency for International Development (USAID) contracts, the Justice Department announced today.
“Misrepresentations during contract negotiations undermine the integrity of the government procurement process,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. “The Justice Department will take action where contractors misrepresent their qualifications for government contracts and programs.”
The settlement concerns USAID-funded contracts for the construction of water and wastewater infrastructure projects in the Arab Republic of Egypt in the 1990s. The bidders for these contracts were required to receive prequalification and, in some cases, establish that they were U. S. companies. However, the contracts were ultimately performed by a joint venture partnership among Contrack; Washington Group International, Inc., a subsidiary of URS Corporation; and Misr Sons Development S.A.E. (Hassan Allam Sons), an Egyptian company. The government filed suit under the False Claims Act and the Foreign Assistance Act alleging that the joint venture partners evaded the prequalification requirement by concealing the identity of the joint venture partners, which prevented USAID from accurately evaluating their qualifications. As a result, the government alleged that Contrack and its partners received USAID-funded contracts for which they were ineligible.
“Proper public contracting, government efficiency and government accountability rely on complete information from contractors,” said Wendy J. Olson, U.S. Attorney for the District of Idaho. “Along with our partners at USAID and the Department of Justice’s Commercial Litigation Branch, we will aggressively seek to recover improperly awarded taxpayer dollars.”This settlement – which resolves only Contrack’s liability – was the result of a coordinated effort by the Department of Justice, Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the District of Idaho; and the USAID Office of Inspector General. The government is continuing to pursue its claims against the other two defendants in the suit.
The case is United States v. Washington Group International Inc. f/k/a/ Morrison Knudsen, Corporation; Contrack International, Inc.; and Misr Sons Development S.A.E. a/k/a Hassan Allam Sons, No. 04-555 (N.D. Idaho). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Cocaine Courier Sentenced to Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that CHRISTOPHER PAPPAGALLO, 40, of Vernon, was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to 24 months of imprisonment, followed by three years of supervised release, for his role in a cocaine trafficking conspiracy.
According to court documents and statements made in court, PAPPAGALLO was paid by an associate to transport more than 100 kilograms of cocaine from California to Connecticut. PAPPAGALLO acted a courier on three different occasions, earning $10,000 for the first trip, $8,500 for the second trip and $17,000 for the third trip. PAPPAGALLO’s third trip occurred in January 2012, when he transported approximately 54 kilograms of cocaine to Connecticut.
PAPPAGALLO pleaded guilty to a cocaine conspiracy charge on April 1, 2013.
This matter has been investigated by the Drug Enforcement Administration, the New Britain Police Department and the East Central Narcotics Task Force, which includes the Manchester, South Windsor, Glastonbury and Vernon Police Departments. The case is being prosecuted by Assistant United States Attorney Geoffrey M. Stone.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Clifton Man Pleads Guilty to Production of Child PornographyRead the Press Release
DENVER – Robert Arthur Brewster, age 41, of Clifton, Colorado pled guilty earlier this week before U.S. District Court Judge R. Brooke Jackson to the production of child pornography, U.S. Attorney John Walsh and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Kumar Kibble announced. Brewster appeared at the change of plea hearing in custody. Judge Jackson is scheduled to sentence Brewster on September 24, 2013 at 8:00 a.m.
Brewster was indicted by a federal grand jury on February 26, 2013. He pled guilty on July 10, 2013.
According to court documents, including the stipulated facts contained in the plea agreement, beginning on January 7, 2010, the defendant initiated contact using an instant message program with an individual whom he believed to be a 13 year old girl living in Kentucky. In truth, the 13 year old girl was an undercover Kentucky based Internet Crimes Against Children task force officer. Over the following month, the defendant engaged in multiple conversations where he actively shared multiple images and videos depicting child pornography in an effort to entice the undercover officer to participate in the production of child pornography for him. Brewster went as far as sending a brand new web camera to the undercover officer.
During the conversations, the defendant admitted to producing child pornography himself and sent 3 of the images he produced as proof. All 3 of the pictures constituted child pornography, were of a minor child to whom he had access, and in each of the pictures the tattoo on his lower left arm was visible.
A search warrant was executed at his residence in Clifton, Colorado. Media seized from the defendant’s residence yielded 870 images of child pornography and 22 videos of child pornography on the Defendant’s computer. Among the media were the images of the minor child to whom he had access to as described above -- revealing 23 images of that minor child of which 20 were actual child pornography.
“The production of child pornography is one of the most serious crimes prosecuted by the U.S. Attorney’s Office,” said U.S. Attorney John Walsh. “Thanks to the hard work of Homeland Security Investigations and the Mesa County Sheriff’s Office, working closely with Assistant U.S. Attorneys, the defendant was arrested, and thus prevented from continuing the sexual assaults of his minor victim, in essence rescuing his victim from continued exploitation.”
“The sexual exploitation of children is a heinous crime that can scar and debilitate its victims forever,” said Kumar Kibble, special agent in charge of HSI Denver. “To rescue these innocent victims, HSI works in tandem with the U.S. Attorney’s Office and our international, state and local law enforcement partners to vigilantly protect our communities from child sex predators.”
Brewster faces a mandatory minimum 15 years in federal prison, and a maximum of not more than 30 years in federal prison. He also faces a term of supervised release of not less than 5 years, and up to life. In addition, Brewster faces a fine of up to $250,000 as well as restitution. He will also be required to register as a sex offender. Finally, he has agreed to forfeit all of his computers and computer media used in the production of and or containing child pornography, including 3 laptop computers, a computer tower, 2 cameras, a web camera, 2 thumb drives, and one external hard drive.
This case is being investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Mesa County Sheriff’s Office, and officers from the Internet Crimes Against Children Task Force.
Brewster is being prosecuted by Special Assistant U.S. Attorney Shana Martin and Assistant U.S. Attorney Alecia Riewerts Wolak.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
####
Charles City Man Charged with Being A Felon in Possession of Firearms Stolen from an Auction Yard in Floyd CountyRead the Press Release
Randy Patrie, age 40, from Charles City, Iowa, has been charged with one count of being a felon in possession of a firearm. The charges are contained in a Complaint filed on July 10, 2013, in United States District Court in Cedar Rapids.
The Complaint alleges 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 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: on September 24, 1991, in the Iowa District Court for Mitchell County of Attempted Burglary in the 2nd degree; on May 28, 1996, in the Iowa District Court for Floyd County of Delivery of Methamphetamine; and on May 27, 2003, in the Iowa District Court for Floyd County, of Burglary 3rd.
If convicted, Patrie faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and 3 years of supervised release following any imprisonment.
Patrie appeared today in federal court in Cedar Rapids and was held pending a detention hearing scheduled for July 14, 2013, at 11:00 a.m.
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-mj-196.
Cedrick Marc Leiby Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on July 9, 2013, before Senior Wm. Fremming Nielsen, CEDRICK MARC LEIBY, a 35-year-old resident of Billings, was sentenced to a term of:
Prison: 150 months
Special Assessment: $300
Restitution: to be determined
Supervised Release: 4 years
LEIBY was sentenced in connection with his guilty plea to conspiracy to possess methamphetamine with intent to distribute, obstruction of justice/witness tampering, and possession of a stolen firearm.
In an Offer of Proof filed by Assistant U.S. Attorney Marcia K. Hurd, the government stated it would have proved at trial the following:
LEIBY came to the attention of law enforcement officers as part of a larger drug case. LEIBY was identified as a person who bought large amounts of methamphetamine brought from Las Vegas to Billings on behalf of supplier Howard Bonifant. LEIBY was identified by Bonifant's runners as being among their biggest customers, and he is prominent in phone tolls, drug ledgers, and in the dealers' phones. Various customers of his also identified LEIBY as their supplier, and one of the bigger dealers in Billings by the fall of 2010. LEIBY conspired with others to distribute over 500 grams or more of a mixture of substance containing a detectable amount of methamphetamine.
After LEIBY was indicted on the charge of conspiracy to possess methamphetamine with intent to distribute, and while he was in the Yellowstone County Detention Facility pending state charges, he knew there was a detainer on him for federal charges. He approached another defendant in the larger drug case while they were both incarcerated at the facility. This individual had already given law enforcement information on the drug case, including information on LEIBY. LEIBY came to the person's cell and handed him a hand-written note on a piece of paper. The note said something to the effect of "I, blank space, have never given or sold Cedric Leiby any methamphetamine." LEIBY told him to sign the paper or something would happen to him if he did not. This individual believed that LEIBY knew a lot of people at YCDF and that if he did not sign the paper, LEIBY would have someone hurt him. He wrote his name on the blank spot and gave the paper back to LEIBY. LEIBY had the person's cell mate sign as a witness to the signature. LEIBY has continued to tell people that the person ratted LEIBY out, and he has concerns for his safety. LEIBY has also called the person a "rat" in a loud enough voice for others in the cellblock at YCDF to hear, and thus the person was moved to another unit for his own safety.
On August 11, 2011, LEIBY had come to the attention of law enforcement authorities when a car was stopped for a traffic violation and was found to have sale tags from Sports Authority inside. The deputy was familiar with the recent theft of six firearms from that location. The vehicle was impounded and a search warrant obtained. Officers also searched the driver's residence as permitted by his supervising probation officer. In a hidey-hole in the garage five of the six firearms stolen from Sports Authority were found.
Further investigation revealed that LEIBY stole the guns from Sports Authority by cutting the security chains with a bolt cutter and leaving through a back door of the store. LEIBY took the guns to the residence and put them in the hidey-hole in the garage.
Bonifant pled guilty to federal charges and has been sentenced.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that LEIBY will likely serve all of the time imposed by the court. In the federal system, LEIBY does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Billings Big Sky Safe Streets Task Force.
Canadian Man Pleads Guilty to Access Device FraudRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Taylor Vaughn Oliver, 28, a Canadian resident, pleaded guilty before Chief U.S. District Judge William M. Skretny, to access device fraud. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney John E. Rogowski, who is handling the case, stated that the defendant made $18,000 worth of purchases using fraudulent credit cards, mostly gift cards. Surveillance videos from many of the stores identified Oliver as the person using the fraudulent cards. The defendant was in the United States during three weekends when the purchases were made in Ohio, Pennsylvania, and New York. Law enforcement officers recovered approximately $10,000 in goods purchased with the fraudulently obtained gift cards from a storage unit.
The plea is the culmination of an investigation on the part of Special Agents of Immigration & Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.Sentencing is scheduled for October 17, 2013, at 9:00 a.m. before Chief Judge William M. Skretny.
Canadian Citizen Sentenced in Manhattan Federal Court to 20 Years in Prison in Connection with $7 Million Advance-Fee Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that DAVID “JIM” NORMAN was sentenced in Manhattan federal court to 20 years in prison for his role in a scheme to defraud victims across the country out of millions of dollars. As part of the scheme, NORMAN promised victims huge guaranteed returns on investments to be paid out of overseas bank accounts that in reality did not exist. Following his extradition from Canada in November 2011, NORMAN was convicted of conspiracy to commit wire fraud in January 2013, after a six-day jury trial. U.S. District Judge Katherine B. Forrest presided over the trial and sentenced NORMAN today.
Manhattan U.S. Attorney Preet Bharara said: “By promising huge returns on their investments, Jim Norman induced scores of victims from around the country to give him millions of dollars. As proven at trial, his promise was nothing more than a shameless scheme to steal hard-earned money from the victims, some of whom lost their entire life savings and even their homes. With today’s sentence, Norman will pay the price for his fraud and the suffering that he has caused his victims.”
FBI Assistant Director-in-Charge George Venizelos said: “As the jury found, Jim Norman used fast talk and the lure of easy profits to separate credulous investors from their money. The promissory notes he issued were as fraudulent as the rest of his scheme. The immediate results were ill-gotten gains for Norman and devastating losses for his victims. The endgame for Norman is a lengthy prison term.”
According to the evidence presented at trial, beginning in 2004 through his arrest in Canada in December 2009, NORMAN told victims that, as part of the “Jim Norman Program,” he was seeking investors to help pay fees to secure the release of hundreds of millions of dollars held in bank accounts in Spain and Switzerland. NORMAN, along with his co-conspirators in the United States who helped lure victims into the scheme, stole at least $7 million from more than 100 victims by promising them huge returns on their investments – that would be paid in a matter of days or weeks at most – and by giving victims official-looking, but worthless, “promissory notes” that purportedly guaranteed their investments and return. In reality, there were no overseas accounts, and NORMAN and his co-conspirators spent the victims’ money on themselves by making large retail purchases and withdrawing hundreds of thousands of dollars in cash. As a result of the fraudulent scheme perpetrated by NORMAN, some victims lost all their assets, others lost their homes, and others lost their businesses.
In addition to the prison term, Judge Forrest sentenced NORMAN, 64, of Toronto, Canada, to three years of supervised release. NORMAN was also ordered to forfeit $2,197,637 and pay $1,731,805 in restitution, in addition to a $100 special assessment fee.
Mr. Bharara praised the FBI for its outstanding work on this case.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Andrew Goldstein and Andrea Surratt are in charge of the prosecution.
Buffalo Man Convicted Following Jury Trial of Gun and Drug ChargesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Tyrone Nance, 32, of Buffalo, N.Y., was convicted following a jury trial of being a felon in possession of a firearm and possession of marijuana. The charges carry a maximum sentence of 10 years in prison, a $250,000 fine or both.
Assistant U.S. Attorneys Frank T. Pimentel and Mary Catherine Baumgarten, who handled the trial, stated that in November 2011, federal probation officers conducted a search of the defendant’s residence and car on Timon Avenue in Buffalo. Nance was on supervised release as a result of a 2009 conviction for conspiracy to distribute marijuana. During the search, officers recovered a shotgun hidden under the hood of the defendant’s car. They also recovered a quantity of marijuana from the freezer in the defendant’s residence. DNA analysis performed by the Erie County Forensics Laboratory tied the shotgun to the defendant.
The verdict is the culmination of an investigation on the part of the United States Probation Department, under the direction of Anthony SanGiacomo, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano.
Sentencing is scheduled for November 4, 2013 at 9:00 a.m. before Chief U.S. District Judge William M. Skretny who presided over the trial.Bruce Wayne Eagleman, 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 Helena, on July 9, 2013, before U.S. District Judge Sam E. Haddon, BRUCE WAYNE EAGLEMAN, JR., a 25-year-old resident of Hardin and an enrolled member of the Crow Tribe of Indians, pled guilty to second degree murder. Sentencing has been set for October 21, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
On November 23, 2011, the Hardin City Court ordered EAGLEMAN to participate in the 24/7 sobriety program in Bighorn County. EAGLEMAN had just been arrested for disorderly conduct, criminal trespass to property, an open container violation, and possession of drug paraphernalia. He pleaded guilty to disorderly conduct after he admitted to drinking a gallon of gin on the day of his arrest.
The 24/7 sobriety program became law in Montana on October 1, 2011. The program is designed to address the most serious alcohol offenders in the state, and also, to verify that these people are not drinking and driving. Pursuant to this program, the Hardin Court ordered EAGLEMAN to take a breath test twice a day - the first between 7 a.m. and 9 a.m. and the second between 7 p.m. and 9 p.m.
The Hardin City Court was also familiar with EAGLEMAN due to his previous driving under the influence conviction. On July 11, 2008, EAGLEMAN pleaded guilty to driving under the influence of alcohol after he stated he drank twelve, 24-ounce, cans of beer. EAGLEMAN, who is 25-years-old, also has never had a valid driver's license.
During the morning of December 29, 2011, EAGLEMAN's mother drove him from Crow Agency to Hardin to take his morning breath test. EAGLEMAN and his mother then returned to Crow Agency. Sometime in the early afternoon, EAGLEMAN took his mother's 2006 Dodge Durango and said he was leaving to go check the mail. Instead, EAGLEMAN left the house and met up with V.F.
EAGLEMAN and V.F. drove to a friend's house in Crow Agency. Everyone discussed driving to Hardin. Shortly thereafter, EAGLEMAN, V.F., and a friend drove to Hardin. EAGLEMAN drove his mother's Durango. EAGLEMAN and V.F. had already drank four malt liquors earlier in the afternoon. As EAGLEMAN drove to Hardin, the friend said EAGLEMAN began to drive more erratically.
EAGLEMAN first drove to a pawn shop, where he pawned a few items and received $10. EAGLEMAN used the $10 to buy a liter of Nikolai gin. EAGLEMAN next drove to another pawn shop. At the pawnshop, an employee observed that EAGLEMAN was extremely intoxicated. She saw EAGLEMAN leave and get in the driver's seat of the Durango.
After leaving the pawn shops, EAGLEMAN made a few more stops for gas and at another friend's house. Finally, he drove to the grocery store where he purchased two cans of Mike's Hard Lemonade and left the store. EAGLEMAN dropped the friend off in Hardin, which left just V.F. in the car with EAGLEMAN. EAGLEMAN then drove back to Crow Agency.
EAGLEMAN drove back to Crow Agency by way of the two-lane East Frontage Road. Initially he drove in the correct lane of travel - the southbound lane. At approximately 5:40 p.m., however, EAGLEMAN crossed into the northbound lane of the road and directly in front of S.S.'s oncoming car. S.S. attempted to drive to the left to avoid the oncoming crash, but was unsuccessful. The passenger side of EAGLEMAN's Durango collided with the passenger side of S.S.'s car in the northbound lane of traffic - the correct lane of traffic for S.S. A witness drove up almost immediately thereafter and saw EAGLEMAN in the driver's seat of the Durango.
Responding medical and law enforcement saw that V.F. was still alive, but he could not breathe well. He died shortly thereafter. S.S. had two other passengers in her car, both of whom died on scene. An ambulance transported S.S. to the hospital where she died. EAGLEMAN suffered minor injuries and was released from the hospital. Soon after the crash, at 6:52 p.m. that evening, his blood alcohol content was .257. He also tested positive for opiates and THC.
EAGLEMAN faces possible penalties of life in prison, a $250,000 fine and 5 years supervised release.
The investigation was a cooperative effort between the Federal Bureau of Investigation, the Montana Highway Patrol, and the Bureau of Indian Affairs.
Brothers-in-Law, Who Used Craigslist to Sell Tickets to Sporting Events, Receive Lengthy Federal Prison Sentences on Wire Fraud ConvictionsRead the Press Release
FORT WORTH, Texas — Two men, who pleaded guilty earlier this year to wire fraud charges stemming from their use of Craigslist to obtain victims’ credit card information, have been sentenced by U.S. District Judge John McBryde. James Lee Williams, II, 40, of Dallas, was sentenced on April 26, 2013, to 120 months in federal prison and ordered to pay more than $77,000 in restitution. His brother-in law and co-defendant Anthony Troy Johnson, 44, of Karnack, Texas, was sentenced on July 5, 2013, to 48 months in federal prison and ordered to pay more than $66,000 in restitution. Williams has been in custody since his arrest; Johnson was ordered to surrender to the Bureau of Prisons by July 26, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Williams and Johnson admitted running a scheme in which they advertised on Craigslist tickets for sale to events such as football games or Texas Rangers baseball games. When a customer called to buy tickets, they obtained the credit card information and informed the customer that their tickets would be mailed or could be picked up at the event. Instead of purchasing tickets to the designated event, however, Williams and Johnson used the victims’ credit card information to purchase airline tickets, tickets to other sporting events, concerts and attractions such as Six Flags Over Texas amusement park, and then they sold the fraudulently obtained tickets to other consumers.
Williams was arrested by officers with the Arlington Police Department in August 2012 after a state search warrant was executed in his motel room in Arlington. Among some of the items seized were documents containing names and numbers consistent with personal identifying information and credit card numbers, written ledgers for various sporting/entertainment events, cell phones and tickets. Some of the paperwork had been stuffed into the toilet, clogging it and causing it to overflow, and a laptop computer had been thrown out of the window.
The investigation was conducted by the Arlington Police Department and the U.S. Postal Inspection Service. Assistant U.S. Attorney Chris Wolfe prosecuted.
Bonesteel Woman Charged with Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bonesteel, South Dakota, woman has been indicted by a federal grand jury for Child Abuse.
Maria Janis, age 35, was indicted by a federal grand jury on April 12, 2013. She appeared before U.S. Magistrate Judge Mark A. Moreno on July 11, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is up to 10 years in custody, a $250,000 fine, or both; 3 years of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Janis is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Janis was released to a third party custodian pending trial. A trial date has been set for August 13, 2013.
###Blasdell Man Sentenced for Possession of Child PornographyRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Jeremy Marsillo, 30, of Blasdell, N.Y., who was convicted of possession of child pornography, was sentenced to 24 months in prison and five years of supervised release by Chief U.S. District Court Judge William M. Skretny.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that on May 19, 2012, the Hamburg Police Department received a report that the defendant left behind a SIM card at a residence he had been staying at. The report also indicated that the SIM card contained images of child pornography. In addition to the SIM card, Marsillo also had an electronic tablet also containing child pornography. A forensic analysis of the SIM card and the tablet uncovered approximately 100 images of child pornography stored on the SIM card, and an additional 174 images of child pornography stored on the tablet. The defendant obtained these images over the internet. Certain images contained depictions of violence against children.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, Special Agent-In-Charge; and the Town of Hamburg Police Department, under the direction of Chief Michael Williams.
Albuquerque Man Sentenced to 188 Months in Federal Prison for Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Antonio Gallegos, 48, of Albuquerque, N.M. was sentenced this afternoon to 188 months in federal prison followed by a lifetime of supervised release for his conviction for distribution and attempted distribution of child pornography. Gallegos will be required to register as a sex offender after he completes his prison sentence. Gallegos also was ordered to pay $500 in restitution to the victim whose image was at issue in his crime of conviction.
Gallegos’ sentence was announced by U.S. Attorney Kenneth J. Gonzales, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and Chief Robert W. Shilling of the New Mexico State Police (NMSP).
Gallegos was arrested in April 2012, on a criminal complaint charging him with distribution, receipt and possession of child pornography, and has been in federal custody since that time. In May 2012, Gallegos was indicted and charged with one count of distribution and attempted distribution of child pornography; three counts of receipt of child pornography; and one count of possession of child pornography. In July 2012, Gallegos entered a guilty plea to Count 1 of the Indictment charging him with distribution and attempted distribution of child pornography.
In entering his guilty plea, Gallegos admitted that from Aug. 2011 through March 2012, he knowingly distributed and attempted to distribute child pornography through a peer-to-peer filing sharing program. Gallegos acknowledged that investigators with the New Mexico Internet Crimes Against Children (ICAC) Task Force executed a search warrant at his residence in March 2012, and seized computers and computer-related media containing child pornography. The search warrant was based on a NMSP investigation that began in Sept. 2011, and monitored Internet Protocol (IP) addresses that appeared to be used to distribute, receive and possess child pornography. IP addresses that were subscribed to Gallegos at his residence on the west side of Albuquerque were amongst the IP addresses identified by the investigation.
Gallegos also acknowledged that a forensic examination of his computer and computer-related media revealed thousands of images and videos of child pornography. The National Center for Missing and Exploited Children determined that the child pornography images and videos found on Gallegos’ computers and computer-related media include 20 images of 15 children who have been identified as child pornography victims and have been rescued.The case against Gallegos was investigated by the FBI, the NMSP and the New Mexico Regional Computer Forensic Laboratory, and was prosecuted by Assistant U.S. Attorney Charlyn E. Rees. The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Thursday 11 July 2013
Wounded Knee Man Charged with Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that Berdell Christopher Shot, age 29, of Wounded Knee, South Dakota, appeared before U.S. District Judge Roberto A. Lange on July 10, 2013, and pled guilty to Sexual Abuse of a Minor.
The maximum penalty upon conviction is 15 years in custody, a $250,000 fine, or both; life of supervised release; and $100 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on or about November 19, 2012, when Shot had sexual contact with the victim.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Tim Maher.
A presentence investigation was ordered and a sentencing date was set for September 30, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
# # #Wetumpka Woman Pleads Guilty to Health Care FraudRead the Press Release
Montgomery, Alabama - LaShawn Denise Anthony, 42, of Wetumpka, entered a guilty plea today to one count of health care fraud, admitting that she and her business had falsely billed Alabama Medicaid, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. Anthony had been scheduled to go to trial on July 22, 2013, on the indictment returned against her in December 2012.
The indictment filed against Anthony charged her with committing health care fraud through her business, Youth Enhancement and Family Services, Inc. Youth Enhancement and Family Services, Inc., was a non-profit corporation which provided psychotherapy services to students and families as part of the Medicaid Program in Alabama. The specific program was designed to provide counseling services to children with behavioral problems as well as give their families living skills training.
Specifically, Anthony admitted that she committed health care fraud by falsely billing claims as if a psychologist with a doctoral degree had actually provided services, when, in fact, the therapist who performed the service had only a master’s degree. Thus, Anthony submitted false claims and made false statements to the Medicaid Program which allowed her to make more money from Medicaid than she was legally owed.
“This case demonstrates the commitment of this office to fighting health care fraud in all its forms,” stated U.S. Attorney Beck. “This office will continue to investigate and prosecute health care fraud aggressively and thoroughly. I want to especially thank Attorney General Luther Strange and the agents in his Medicaid Fraud Control Division as well as the Program Integrity Division of Alabama Medicaid for their efforts in discovering this scheme. We expect this type of joint investigation to become a model of law enforcement cooperation among federal and state authorities.”
Attorney General Strange praised the cooperative efforts between his Medicaid Fraud Control Unit and the U.S. Attorney’s office in bringing Ms. Anthony to justice. “My office will continue to work collaboratively with the U.S. Attorney’s office in order to protect scarce public resources,” said Strange. “I look forward to future partnerships between the two offices to ensure any person who attempts to steal the taxpayers’ money will be held to account.”
Based on her guilty plea, Anthony faces a maximum punishment of 5 years in prison and a $250,000.00 fine, along with restitution to Alabama Medicaid in excess of $190,000.00. Sentencing before U.S. District Judge W. Keith Watkins has yet to be scheduled. Assistant U.S. Attorneys Bob Anderson and Denise Simpson are prosecuting the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617West Virginia Doctor Charged with over Prescribing PainkillersRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Doctor allegedly over prescribed narcotics to patients who later overdosed
CLARKSBURG, WEST VIRGINIA - A Harrison County, West Virginia doctor has been charged with supplying excessive amounts of prescription pain medication to individuals for non- legitimate medical reasons, actions that are believed to be linked to several drug overdose deaths.
United States Attorney William J. Ihlenfeld, II announced that DR. EDITA MILAN was arrested today for the felony offense of “Conspiracy to Distribute Schedule II, III, & IV Controlled Substances.” MILAN is alleged to have supplied large quantities of painkillers to her customers for no legitimate medical purpose and outside the usual course of professional practice. Her motive for the distribution of the drugs is believed to be financial in nature.
MILAN and her practice had been under investigation by the Greater Harrison Drug Task Force for several months when in June of 2013, a neighbor of MILAN in Fairmont, West Virginia was found dead in his home. The neighbor also happened to be a patient of MILAN’S, and it is alleged in the criminal complaint that he had been prescribed large quantities of painkillers by MILAN prior to his death. The complaint further states that MILAN misrepresented the cause of the death to the county medical examiner, and that she conspired to throw away many of the deceased’s pill bottles after his death in order to conceal her connection to the decedent.
Although the deceased subject had not been in to see MILAN for three months prior to his death, the complaint alleges that MILAN continued to prescribe oxycodone and morphine to him. This method of prescribing is against legitimate medical practice since a patient is supposed to physically visit a doctor’s office in order for prescriptions of this type to be filled.
According to the complaint, a review of State Health Department records was conducted by agents and it showed that between 2010 and 2011 three other patients of MILAN died as a result of overdoses from pharmaceuticals that she had prescribed.
MILAN obtained authorization in 2009 to open a narcotic treatment program, sometimes referred to as a “pain clinic”, and she was permitted to treat up to 30 patients with narcotics. The investigation indicates that MILAN was treating more than twice as many patients with narcotics than she had the authority to treat. MILAN is also believed to have prescribed pills to individuals “off the books”, or to people who were never actually her patients. A review of State Board of Pharmacy data revealed that MILAN had at least 37 patients who are known by law enforcement to have involvement in the illegal diversion of prescription pills.
“As this case demonstrates, federal, state and local law enforcement continue to stand united to tackle the drug problem in North Central West Virginia and throughout the state,” said U.S. Attorney Ihlenfeld. “Together, we are making a positive difference as we aggressively pursue doctors who seek to hide behind a medical license in order to traffic in highly addictive and sometimes deadly substances.”
The investigation initially focused upon an employee of MILAN’S practice who was selling painkillers in the parking lot of the office to an undercover police officer. That employee was charged in federal court and convicted, and then was replaced at the medical practice by her sister, who had a prior felony drug conviction herself. Agents then received information from a Harrison County pharmacist that caused the focus of the case to turn to the unusually large number of prescriptions being written by MILAN to her employees and to their families. Surveillance conducted by task force officers confirmed these allegations.
Federal search warrants were served at MILAN’s home in Fairmont and her office in Bridgeport late last month. Warrants were also served at the home of MILAN’s deceased patient and upon the home of one of MILAN’s employees. On the day that the warrants were served MILAN agreed to voluntarily surrender her DEA registration number and as such she can no longer prescribe controlled substances.
As a result of the execution of the search warrant at MILAN’s office, hundreds of patient files were seized by investigators. Patients who are seeking copies of their medical files should make a request in writing by regular mail to the United States Attorney’s Office, P.O. Box 591, Wheeling, West Virginia 26003. Patients should include their full name, date of birth, address, and phone number when making the request, and they will be contacted in order to arrange to obtain their records. Patients will need to provide photo identification in order to receive their records.
The case is being prosecuted by Assistant United States Attorney John C. Parr. The case was investigated by the Greater Harrison County Drug and Violent Crimes Task Force, which is comprised of officers and agents from the Bridgeport Police Department, the Clarksburg Police Department, the Drug Enforcement Administration, and the West Virginia State Police, along with support from the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals
Service.Ventura County-based Amgen Inc. Pays over $15 Million to Resolve Allegations That It Illegally Marketed Cancer Drug with KickbacksRead the Press Release
LOS ANGELES – Biopharmaceutical company Amgen Inc. today paid the United States more than $15 million to resolve allegations that the Ventura County company provided illegal financial incentives to physicians and physician groups to induce them to prescribe the cancer drug Xgeva.
Amgen, which is headquartered in Thousand Oaks, paid the money today pursuant to a settlement agreement with the United States to resolve allegations that it violated the Medicare Anti-Kickback Statute and the federal False Claims Act. The Medicare Anti-Kickback Statute prohibits anyone from offering, paying, soliciting or receiving anything of value to generate referrals for items or services payable by any federal health care program.
Xgeva, which is the brand name of the drug denosumab, was approved by the Food and Drug Administration in late 2010 for use with certain cancer patients undergoing chemotherapy. It is most commonly prescribed for patients with metastatic bone disease in order to prevent skeletal-related adverse events.
In order to increase sales of Xgeva, Amgen used data purchase agreements – which the company called the “Deep Dive” contracts – to provide financial incentives to oncologists and urologists to prescribe Xgeva. The original plan for the Deep Dive contracts called for Amgen to pay doctors to fill out a short survey on the Internet on how they were treating patients with bone cancer, including which drugs were used – whether or not Xgeva was prescribed. However, Amgen altered the original Deep Dive program design by increasing the amount of money it would pay doctors, and by offering such payments only to doctors who prescribed Xgeva for their patients. Amgen’s Xgeva marketing team also was not supposed to know the identities of the doctors who received Deep Dive contracts, but team members had access to that information. Additionally, in a further effort to influence doctors to prescribe Xgeva, Amgen provided cash payments characterized as honoraria to oncologists and urologists for participating in audience response sessions, data market research surveys, and “treatment trends” advisory board programs which touted the benefits of Xgeva.
This settlement resolves a lawsuit filed under the qui tam, or “whistleblower,” provisions of the False Claims Act, which allow private citizens with knowledge of fraud to bring civil actions on behalf of the United States and share in any recovery. The case, which was filed last year in federal court in Los Angeles by two Amgen employees – United States ex rel. Davis et al. v. Amgen Inc., et al., CV12-00570-R (MRWx) – was unsealed Tuesday after the United States elected to take over part of the case and negotiated the settlement with Amgen. The two men who originally filed the lawsuit, William Davis and Spencer Miller, will collectively receive $2.75 million as part of the settlement.
The United States Attorney’s Office for the Central District of California, and the Justice Department’s Civil Division, handled the civil settlement. This matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General.
Release No. 13-095
Vehicle Pursuit from Falfurrias Checkpoint Results in Significant SentenceRead the Press Release
CORPUS CHRISTI, Texas – Nelson Alanis-Alanis, 29, of Palmview, has been handed a significant sentence following his conviction for possession with intent to distribute approximately 96 kilograms of marijuana, United States Attorney Kenneth Magidson announced today. Alanis-Alanis pleaded guilty on April 19, 2013.
Today, Senior U.S. District Judge Hayden Head handed Alanis-Alanis a sentence of 135 months in federal prison to be followed by a three-year-term of supervised release.
At the hearing, Judge Head heard testimony from Border Patrol agents that Alanis-Alanis drove a 2004 Freightliner tractor-trailer into the Falfurrias U.S. Border Patrol checkpoint on March 12, 2013. When he was directed by Border Patrol agents to an area for further inspection, Alanis-Alanis instead fled northbound on U.S. Highway 281 at speeds of approximately 70 miles per hour. Agents pursued the tractor-trailer and, at one point, were forced into the median by Alanis-Alanis when he jerked the wheel, bringing the tractor-trailer across both lanes of traffic and into the shoulder. Alanis-Alanis later admitted he intended to run the agents off the road.
Agents also testified that the pursuit continued through the town of Falfurrias, approximately 13 miles north of the checkpoint, where Alanis-Alanis ran a red light and narrowly missed cross-traffic. He also drove through a closed section of roadway and crashed through several barricades. Heavy equipment was in operation at the time and many construction workers fled the path of the tractor-trailer. Finally, Alanis-Alanis jumped from the tractor, leaving it running and in gear, and headed toward the grounds of an a elementary school. A Border Patrol agent ran from his vehicle and climbed into the cab of the moving tractor in order to stop it. Alanis-Alanis was apprehended shortly thereafter.
Following the testimony, Judge Head described the defendant’s behavior as “outrageous,” and indicated that what concerned him most was what happened to the two Border Patrol agents. “You attack all persons of the United States when you attack someone representing the United States and its lawful authority,” Judge Head said.
Alanis-Alanis has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by Border Patrol and Homeland Security Investigations. Assistant United States Attorney Jeffrey D. Preston prosecuted the case.
University City Doctor Sentenced for Overbilling Medicare and MedicaidRead the Press Release
St. Louis, MO - DR. WIT A. JAMRY was sentenced to one year and a day and ordered to pay restitution of $119,000 and a fine of $30,000 for billing Medicare and Medicaid for services he had not performed. His company Dr. Wit-Internal Medicine Professional Geriatric, P.C. was ordered to pay $119,000 in restitution.
According to the facts filed with the court, between 2007 and 2011, Dr. Jamry billed for services to St. Louis patients while he was actually out of town or out of the country. He was away on trips to Atlanta, Poland and Mexico at the time he made 276 false claims totaling $26,227. Some of the work was performed by a nurse practitioner. Additionally, Dr. Jamry or his company, Dr. Wit-Internal Medicine Professional Geriatric, P.C., submitted over $92,773 in claims for patient visits lasting more than an hour, when neither he nor his nurse practitioners had spent that amount of time with the patients.
Jamry, University City, MO, pled guilty in February to one felony count of heath care fraud and appeared today for sentencing before United States District Judge E. Richard Webber.This case was investigated by the United States Department of Health and Human Services, the Federal Bureau of Investigation and the Missouri Medicaid Fraud Control Unit. Assistant United States Attorney Dorothy McMurtry handled the case for the U.S. Attorney’s Office.
United States Attorney’s Office Announces Transfer of over $500,000.00 to the New Hanover County Sheriff’s OfficeRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced today the transfer of $505,503.06 in forfeited currency to the New Hanover County Sheriff’s Department. The transfer was authorized by the federal equitable sharing program enacted by Congress in the Comprehensive Crime Control Act of 1984 and administered by the United States Marshal’s Service. Under the program, local and state law enforcement agencies that assist in federal investigations which lead to the forfeiture of property may share in the proceeds. The share received reflects their contribution to the investigation and may be used for any approved law enforcement purpose.
United States Attorney Thomas G. Walker stated, “This significant forfeiture of funds from illegal activities will now be used to benefit the public and enhance law enforcement in New Hanover County. The joint investigation of the matter by federal authorities and the New Hanover County Sheriff’s Office is a testament to how teamwork plays a priceless roll in the investigation of crime.”
In FY 2012 alone, over $7.5 million dollars of forfeited property was equitably shared by the federal government with 105 state and local law enforcement agencies in the 44 counties of the Eastern District of North Carolina. Funds have been used for equipment, training, improvements to buildings, and salaries for new positions, among other things. Under federal guidelines, equitably shared funds must supplement and enhance law enforcement budgets and not supplant already budgeted funds.
The investigation of this case by the New Hanover County Sheriff’s Office, in conjunction with the Drug Enforcement Administration, uncovered a trail of drug dealing and attempted murder by deceased Canadian Jonathan MacDonald that stretched as far as Southern California and Arizona. The court ultimately rejected claims to the currency by the alleged heirs of MacDonald and determined that the currency was drug proceeds.
Two Sentenced and One Pleads Guilty to Firearms ChargesRead the Press Release
MONROE/SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that two defendants were sentenced and one defendant pleaded guilty to firearms charges this week.
Defendant Sentenced to 18 Months in Prison
Lorenzo V. Rodriguez, 52, of Mexico, was sentenced on Tuesday by U.S. District Judge Tom Stagg, to 18 months in prison and three years supervised release for possession and receipt of a firearm and ammunition by an illegal alien. According to evidence presented at the guilty plea, the Monroe Police Department responded to a domestic dispute on Oct. 14, 2012. The investigation revealed that Rodriguez, an illegal alien, threatened the victim using a firearm with an obliterated serial number. The firearm was recovered at the scene and Rodriguez was taken into custody. He admitted to previously purchasing the firearm from an unknown person. Rodriguez pleaded guilty on March 18, 2013.
The ATF, U.S. Immigrations and Customs Enforcement and the Monroe Police Department investigated the case. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Defendant Sentenced to 70 Months in Prison
Terrance L. Ford, 32, of Monroe, La., was sentenced on Tuesday by U.S. District Judge Robert G. James, to 70 months in prison and three years supervised release for being a felon in possession of a firearm. According to evidence presented at the guilty plea, Ford was arrested on June 4, 2012 after being found in possession of a .40 caliber semi-automatic pistol. Ford had been previously convicted of second degree battery and distribution of PCP, which is a controlled dangerous substance.
The ATF and the Monroe Police Department investigated the case. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
Virginia Resident Pleads Guilty to Firearms Charges
William Thomas Holland III, 32, of Virginia, pleaded guilty before U.S. District Judge Tom Stagg today, to being a felon in possession of a firearm and ammunition, and possession of a firearm with an obliterated serial number. According to evidence presented at the guilty plea, Holland’s vehicle was parked near a wooded area on Barksdale Air Force Base (BAFB). Marijuana was seen in the car. After a search of the car, marijuana and other items were seized. Holland admitted the car was his. At the time, the defendant resided on BAFB with his wife who is in the military, but he was not. A search of the residence was authorized, and a loaded .357 caliber revolver with an obliterated serial number was found. Holland admitted that he possessed the firearm and ammunition. Holland had been previously convicted of a felony battery charge in California. He faces up to 10 years in prison for the felon in possession of a firearm count and five years for the possession of a firearm with an obliterated serial number count. Both counts also carry a $250,000 fine and up to three years supervised release. A sentencing date of Oct. 3, 2013 was set.
The ATF, the Barksdale Air Force Base Security Forces and the Air Force Office of Special Investigations conducted the investigation. Assistant U.S. Attorneys Robert W. Gillespie Jr. and Robert J. France are prosecuting the case.
Two Luzerne County Residents Charged Federally for Distribution of Prohibited “Bath Salts”Read the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a federal grand jury returned an indictment on July 9, 2013 charging two Luzerne County residents with Conspiracy to Distribute Alpha-PVP, a prohibited controlled substance. The two individuals were arrested on July 10.
According to United States Attorney Peter J. Smith, Todd Morgans, 34, and Christine Policare, 20, both of West Pittston, Pennsylvania, were charged by the grand jury with Conspiracy to Distribute a Controlled Substance Analogue. The offense allegedly occurred between December 2011 and July 2013 in and around West Pittston, PA and nearby communities in Luzerne County.
Alpha-PVP is a controlled substance analogue of MDPV, which is commonly referred to as “bath salts”. A controlled substance analogue is a chemically similar substance which has a substantially similar effect on the central nervous system as that of the Schedule I substance.
The Indictment contains a forfeiture allegation seeking to forfeit Morgans’ residence at 217 Liberty Street, West Pittston, PA; two bank accounts; a Chevy Colorado Z-71 truck and a money judgment in the amount of $700,000, representing the proceeds of the conspiracy.
The defendants were arrested early Wednesday morning at the 217 Liberty Street house. In conjunction with the arrests, a federal search warrant was executed at the Liberty Street residence by the Pennsylvania State Police Special Emergency Response Team. The entry team encountered fortified doors and counter surveillance equipment believed to be installed to evade law enforcement. Investigators seized approximately 2000 grams of Alpha-PVP, drug packaging materials, scales, three (3) firearms, ammunition and approximately $40,000 in cash.
Based on what was found at the residence and information obtained during the investigation, the alleged drug distribution ring is allegedly linked to the Aryan Brotherhood organization. White supremacist paraphernalia was found in the residence. The residence was allegedly the main location for the organization’s distribution of bath salts and the meeting place for an Aryan Brotherhood Chapter led by Morgans. The investigation of this organization remains ongoing.
U.S. Attorney Smith noted that bath salts and MDPV analogues are highly dangerous drugs often causing extreme irrational behavior on the part of the individuals who use them, increasing the potential for harm to residents and other innocent bystanders. As a result, a dwelling used as a storage or distribution site for such drugs is both a public safety and health hazard. The substance appears to come to the United States from Asia. Finding the source of the drugs is part of the ongoing investigation.
The defendants, who are currently incarcerated, are scheduled to appear Friday July 12 starting at 10:30 A.M. before United States District Court Judge Malachy E. Mannion for a detention hearing.
The maximum sentence for the offense is imprisonment for 20 years, a fine of $1,000,000 and supervised release for a period of at least 3 years.
This case is the result of a joint investigation and ongoing cooperation among the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Pennsylvania State Police, The United States Postal Inspection Service, the West Pittston Police Department, Jenkins Township Police Department, and the Pittston City Police Department.
Prosecution is assigned to Assistant United States Attorney Amy C. Phillips.An Indictment or Information is not evidence of guilt but simply a description of the charge made by the Grand Jury and/or United States Attorney against a defendant. A charged Defendant is presumed innocent until a jury returns a unanimous finding that the United States has proven the defendant’s guilt beyond a reasonable doubt or until the defendant has pleaded guilty to the charges.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Two Former Mdwfp Employees Sentenced on Wildlife Related ChargesRead the Press Release
Jackson, Miss – Two former employees of the Mississippi Department of Wildlife, Fisheries and Parks (MDWFP) were sentenced in U.S. District Court on July 10, 2013, on wildlife-related charges, announced U.S. Attorney Gregory K. Davis.
Darrel Eugene Dew, a former MDWFP Conservation Officer, pled guilty to taking wild turkeys on federal lands in excess of the bag limit, and failing to submit National Wildlife Refuge User Information Cards on two separate occasions upon the taking and transporting of two white-tailed deer. He was fined $750 plus a $60 assessment fee, and he agreed to forfeit one Remington 870 Express Magnum shotgun, one compound bow, four eastern wild turkey fans, one nine-point white-tailed deer skull with antlers, one ten-point white-tailed deer skull with antlers, sixteen frozen eastern wild turkey feet and eight frozen eastern wild turkey beards.
Jason Thomas Kerr, a former MDWFP Area Manager, was found guilty of conspiring with Dew to commit offenses against the United States by failing to comply with the Sunflower Wildlife Management Area Daily Visitor User Permit Card requirements. Kerr was fined $500 plus a $10 assessment.
Both Dew and Kerr were placed on one year of federal probation which prohibits them from hunting anywhere worldwide, and they are both prohibited from entering any U. S. National Forest or U.S. National Wildlife Refuge for a period of two years.
This case was the result of a joint investigation conducted by the United States Fish and Wildlife Service, the United States Forest Service and the Mississippi Department of Wildlife, Fisheries and Parks. The case was prosecuted by Assistant U.S. Attorney Darren LaMarca.
###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Trio of Used Car Salesmen Plead Guilty in Money Laundering Conspiracy, Forfeit Almost $12 MillionRead the Press Release
Memphis, TN – Three used car salesmen have entered guilty pleas for their roles in selling cars to drug traffickers in an effort to launder drug proceeds, announced United States Attorney Edward L. Stanton III.
# # # #
Wayne David McAlpin, Jr., 50, of Memphis, TN pleaded guilty to one count of money laundering and one count of filing fraudulent documents with the Internal Revenue Service (IRS). Brian Bowman, 46, of Lakeland, TN; and James Austin, a/k/a “the Rev,” 61, of Memphis, TN, each pleaded guilty to one count of filing fraudulent documents with the IRS.
In addition, McAlpin, Jr. and Bowman agreed to forfeit almost $12 million dollars in bank accounts, investment accounts and vehicles, including: a 2008 Bentley Continental GTC; a 2011 Audi A8; a 2009 Cadillac Escalade; and a 2011 Lexus GX460.
“While masking themselves as legitimate businessmen, these individuals lined their pockets with excessive profits by helping drug dealers enjoy the lavish fruits of their criminal acts,” said U.S. Attorney Edward L. Stanton III. “These guilty pleas should serve as a clear reminder to those business operators who facilitate fraud and money laundering schemes that while you think you may be flying under the radar, you are not. It’s just a matter of time before you are caught and brought to justice.”
This investigation was conducted in conjunction with prosecutors in Memphis as part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
“Traffickers may be equipped with a multitude of sophisticated methods in which to hide their assets, but Drug Enforcement Administration’s (DEA) relentless pursuit to disrupt and destroy their drug trafficking activities prevailed in this case,” said Brian K. Chambers, the Resident Agent in Charge of the DEA Memphis Resident Office. “This investigation was a success because of the multi-level law enforcement cooperation.”
According to the agreed-upon statement of facts filed with the court during the men’s respective plea hearings, during the time in question, McAlpin, Jr. was president of Budget Auto Sales, and Austin worked as a salesman there. Bowman was president of Pyramid Used Car Sales. These businesses were frequented by individuals engaged in criminal activity, including, but not limited to, illegal drug trafficking. The businesses sold multiple vehicles to drug traffickers, knowing they had previously had vehicles seized by law enforcement for transporting and concealing illegal drugs.
As part of the criminal conspiracy to conceal the fact that cars were being purchased with the proceeds of illegal drug trafficking, each man submitted IRS Form 8300s with false and misleading information. This form requires any car dealership to report all cash transactions of $10,000 or more. The individuals also titled vehicles in the names of other people, as part of an effort to hide the transactions from law enforcement.
"Structuring financial transactions to avoid currency reporting requirements is a criminal violation of federal law under the Bank Secrecy Act. Deliberately avoiding BSA requirements is a form of money laundering," stated Christopher A. Henry, Special Agent in Charge of the Nashville Field Office. “IRS Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money."
This crime was investigated by the Drug Enforcement Administration, IRS Criminal Investigations, the Memphis Police Department, and the Shelby County Sheriff’s Department. The case was prosecuted by Assistant United States Attorneys Chris Cotton, Daniel French, and Jerry Kitchen on behalf of the government.Thoreau Man Pleads Guilty to Unlawful Possession of Unregistered Sawed-Off ShotgunRead the Press Release
ALBUQUERQUE – Joe Herrera, Jr., 43, an enrolled member of the Navajo Nation who resides in Thoreau, N.M., pleaded guilty this morning to unlawfully possessing a sawed-off shotgun that was not registered to him under a plea agreement with the U.S. Attorney’s Office.
Herrera was indicted in Feb. 2013, on the charge to which he pleaded guilty this morning. According to the indictment, Herrera unlawfully possessed the unregistered sawed off shotgun on Aug. 16, 2011, in McKinley County, N.M. Herrera admitted committing the offense when he entered his guilty plea this morning.
At sentencing, Herrera faces a maximum possible penalty of ten years in federal prison. He remains on conditions of release under pretrial supervision pending his sentencing hearing, which has yet to be scheduled.
The case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Novaline D. Wilson is prosecuting the case.
Tennessee Man Pleads Guilty to Identity TheftRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Omoruyi Ogbeide, of Knoxville, Tennessee, pleaded guilty before U.S. District Judge Richard J. Arcara, to aggravated identity theft. The charge carries a mandatory penalty of two years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Maura K. O'Donnell, who handled the case, stated that the defendant was arrested by Amherst Police in May 2012 for patronizing a prostitute and was found to be in possession of multiple credit cards in the names of unknown individuals. Ogbeide's hotel room was later searched and law enforcement officers found additional fraudulent credit cards and credit-card making equipment. They also found a computer containing stolen identifying information, such as names, dates of birth, and social security numbers of numerous different individuals. The defendant used the information to produce fraudulent credit cards.
The plea was the culmination of an investigation on the part of Special Agents of the U.S. Secret Service, under the direction of Special Agent in charge Tracy Gast and the Amherst Police Department, under the direction of Chief Chief John Askey.
Sentencing is scheduled for November 20, 2013, at 12:30 p.m. before Judge Arcara.
Ten-year Sentence for Dayton Man Who Viewed Child Pornography While A Patient at Va Medical CenterRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON –Charles Edward Suttles, 56, of Dayton has been sentenced to 120 months in prison for viewing sexually explicit images of minor children while he was a patient at the Veterans Affairs Medical Center in Dayton. Suttles was also sentenced to be under court supervision for the rest of his life.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Gavin McClaren, Resident Agent in Charge, Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division announced the sentence handed down today by U.S. District Judge Timothy S. Black.
According to court documents, Suttles was a resident of the VA Medical Center in Dayton in July 2010. VA Police, acting in response to a tip, found Suttles viewing child pornography on a computer in a computer lab set up for residents to use to search and apply for jobs. The officer seized a thumb drive that Suttles had plugged into the computer. A forensic analysis of the thumb drive revealed more than 500 images and more than a dozen videos of child pornography.
VA-OIG agents arrested Suttles in January 2013. He has been in custody since his arrest. Suttles pleaded guilty on March 28, 2013 to one count of possession of child pornography.
“Pursuing those who sexually exploit children is a top priority of all law enforcement particularly when it endangers our nation’s veterans and their families,” said Gavin McClaren, United States Department of Veterans Affairs – Office of Inspector General, Resident Agent in Charge, Cleveland.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the investigation by the VA Inspector General’s Criminal Investigation Division, the Dayton VA Medical Center Police who assisted with the investigation, and Assistant U.S. Attorney Benjamin Glassman, who represented the United States in the case.