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23 July 2013
53-Year-Old Sioux City Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine pled guilty July 23, 2013, in federal court in Sioux City.
Robert Skarin, 53, from Sioux City, Iowa, was convicted of conspiracy to distribute methamphetamine.
At the plea hearing, Skarin admitted that from the beginning of 2013 through April 2013 he distributed more than 50 grams of actual (pure) methamphetamine in the Sioux City, Iowa area. Skarin admitted that on at least two occasions he and another person traveled to Omaha, Nebraska, to obtain methamphetamine for later distribution in Sioux City. On April 3, 2013, law enforcement conducted a traffic stop of a vehicle driven by Skarin with one passenger. A search yielded a brown paper bag rolled up and hidden inside Skarin’s right sock. The bag contained over 80 grams of actual (pure) methamphetamine. Skarin and his passenger intended to distribute some or all of this methamphetamine.
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Skarin was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Skarin faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, a special assessment of $100, and five years up to life of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, which consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and the Woodbury County Attorney’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-4035.
30-count Superseding Indictment Returned for Violations of the Controlled Substances Act and the Federal Gun Control ActRead the Press Release
LANGUNDO FLOWERS, age 33; ODELL WELLS, age 31; DENNIS MORGAN age 27; WALTREL KNOX, age 23, JONATHAN MARTIN, age 28, JOSEPH LEWIS, age 34, CARY BRYANT, age 22, DARREN WILLIAMS, age 25, RICHARD GARRETT, age 25, ALCEE JONES, age 24, RYAN MAGEE, age 20; and CLYDE MITCHELL, age 53, were charged on July 18, 2013, in a thirty (30) count superseding indictment for violations of the Controlled Substances Act and the Federal Gun Control Act, announced U. S. Attorney Dana J. Boente.
LANGUNDO FLOWERS is charged with Conspiracy to Distribute and Possess with Intent to Distribute 280 grams or more of Cocaine Base; Use of a Communications Facility to Commit, Cause and/or Facilitate a Drug Trafficking Crime; Distribution of Cocaine Base; Possession With Intent to Distribute Cocaine Hydrochloride; Possession of a Firearm by a Convicted Felon; and Possession of Ammunition by a Convicted Felon.
ODELL WELLS is charged with Conspiracy to Distribute and Possess with Intent to Distribute 280 grams or more of Cocaine Base; Use of a Communications Facility to Commit, Cause and/or Facilitate a Drug Trafficking Crime; and Possession of Ammunition by a Convicted Felon.
DENNIS MORGAN is charged with Conspiracy to Distribute and Possess with Intent to Distribute 280 grams or more of Cocaine Base and with Use of a Communications Facility to Commit, Cause and/or Facilitate a Drug Trafficking Crime.
WALTREL KNOX is charged Conspiracy to Distribute and Possess with Intent to Distribute 280 grams or more of Cocaine Base; Use of a Communications Facility to Commit, Cause and/or Facilitate a Drug Trafficking Crime; and Distribution of Cocaine Base.
JONATHAN MARTIN is charged with Conspiracy to Distribute and Possess with Intent to Distribute 280 grams or more of Cocaine Base; Use of a Communications Facility to Commit, Cause and/or Facilitate a Drug Trafficking Crime; and Distribution of Cocaine Base.
JOSEPH LEWIS is charged with Conspiracy to Distribute and Possess with Intent to Distribute 280 grams or more of Cocaine Base; Use of a Communications Facility to Commit, Cause and/or Facilitate a Drug Trafficking Crime; and Possession With Intent to Distribute Cocaine Base.
CARY BRYANT is charged with Conspiracy to Distribute and Possess with Intent to Distribute 280 grams or more of Cocaine Base; Use of a Communications Facility to Commit, Cause and/or Facilitate a Drug Trafficking Crime; and Possession With Intent to Distribute Cocaine Base.
DARREN WILLIAMS is charged with Conspiracy to Distribute and Possess with Intent to Distribute 280 grams or more of Cocaine Base and Use of a Communications Facility to Commit, Cause and/or Facilitate a Drug Trafficking Crime.
RICHARD GARRETT is charged with Conspiracy to Distribute and Possess with Intent to Distribute 280 grams or more of Cocaine Base and Use of a Communications Facility to Commit, Cause and/or Facilitate a Drug Trafficking Crime.
ALCEE JONES is charged with Conspiracy to Distribute and Possess with Intent to Distribute 280 grams or more of Cocaine Base; Use of a Communications Facility to Commit, Cause and/or Facilitate a Drug Trafficking Crime; and Distribution of Cocaine Base.
RYAN MAGEE is charged with Conspiracy to Distribute and Possess with Intent to Distribute 280 grams or more of Cocaine Base; Use of a Communications Facility to Commit, Cause and/or Facilitate a Drug Trafficking Crime; and Distribution of Cocaine Base.
CLYDE MITCHELL is charged with Conspiracy to Distribute and Possess with Intent to Distribute 280 grams or more of Cocaine Base; and Possession With Intent to Distribute Cocaine Hydrochloride.
FLOWERS, WELLS, MORGAN, KNOX, MARTIN, LEWIS, BRYANT, WILLIAMS, GARRETT, JONES, MAGEE, and MITCHELL face not less than ten (10) years up to a maximum term of life imprisonment, a fine of up to $10,000,000.00 and not less than five years of supervised release following any term of imprisonment.
This case arose out of a joint investigation conducted by the DEA, HIDTA, Kenner Police Department, HSI, Jefferson Parish Sheriff’s Office, Criminal Intelligence Center, Louisiana State Police, ATF, U.S. Marshals, U.S. Border Patrol, and the Saint John Parish Sheriff’s Office. This investigation targeted a violent Drug Trafficking Organization that operated out of the Lincoln Manor area of Kenner, LA. During the course of the investigation, two major sources of supply of “crack” cocaine for the Lincoln Manor area of Kenner, LA, were identified and dismantled along with their distribution network. Most of the street level distributors for this Drug Trafficking Organization were identified as being affiliated with a local gang who called themselves the “Flippa Squad.” The investigation in on-going.
U. S. Attorney Boente reiterated that the Superseding Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The case is being prosecuted by Assistant United States Attorney J. Collin Sims.
(Download Indictment )
1,500 Cases of Adulterated Dietary Supplements Destroyed in Seizure ActionRead the Press Release
PITTSBURGH, Pa. - United States Attorney David Hickton announced today the destruction of approximately 1,500 cases of adulterated dietary supplements in connection with a civil seizure action filed by the U.S. Attorney’s Office for the Western District of Pennsylvania.
On June 20, the U.S. Attorney’s Office filed a complaint in U.S. District Court requesting the seizure and condemnation of dietary supplements containing the additive 1,3- dimethylamylamine, commonly known as DMAA, located in the Leetsdale, Pa., warehouse of General Nutrition Centers, Inc. (GNC).
According to the complaint, supplements containing DMAA are adulterated and subject to seizure under the Federal Food, Drug, and Cosmetic Act because DMAA is an unsafe food additive. The Government’s complaint followed reports to the Food and Drug Administration (FDA) of at least 86 adverse events involving DMAA-containing supplements. The FDA considers the sale of such supplements in interstate commerce to be illegal and has advised consumers not to buy or use them.
After the seizure action was filed, GNC agreed to voluntarily destroy, at its expense, all DMAA-containing products in its Leetsdale warehouse. The destruction of those products, totaling approximately 1,500 cases, was subsequently witnessed by FDA personnel. On reaching this favorable resolution, the Government dismissed the seizure action as moot.
“We are pleased to have removed from distribution channels a significant quantity of adulterated dietary supplements that may present significant health risks,” said U.S. Attorney Hickton.
In a related matter, the FDA recently announced that USPlabs LLC, manufacturer of the products destroyed in the Leetsdale warehouse, recently destroyed all DMAA-containing products in its Dallas, Texas, facility. Additionally, USPlabs, along with at least 10 other manufacturers of DMAA-containing products, has agreed to stop producing supplements containing DMAA.
This matter was investigated by the United States Attorney’s Office for the Western District of Pennsylvania and the Consumer Protection Branch of the Department of Justice, in collaboration with the FDA. Assistant United States Attorney David Lew handled the matter on behalf of the Government.
22 July 2013
physician pleads guilty to health care fraud chargesRead the Press Release
BUFFALO, N.Y.---U.S. Attorney William J. Hochul, Jr. announced that Daniel C. Gillick, 63, a physician residing in Youngstown, N.Y., pleaded guilty to obtaining controlled substances by fraud and health care fraud. The charges carry a maximum sentence of 10 years in prison, a $500,000 fine or both.
Assistant U.S. Attorney Maura K. O’Donnell and Timothy C. Lynch, who are handling the case, stated that between August 2011 and September 7, 2011, the defendant was employed as an emergency room physician at Schuyler Hospital. During that time, Gillick devised a scheme whereby on September 7, 2011, his girlfriend reported to the emergency room at Schuyler Hospital and pretended to suffer from a medical condition known as Trygeminal Neuralgia. The defendant then performed an apparent examination of her, fraudulently diagnosed her as suffering from Trygeminal Neuralgia and issued a prescription to her for Dilauded, a controlled substance.
In reality, Gillick’s girlfriend was not suffering from this condition, and had no medical need for the drug Dilaudid. In participating in this illegal scheme, the defendant defrauded Schuyler Hospital and also aided and abetted his girlfriend in obtaining a controlled substance by fraud.
“With the abuse of prescription drug medications at epidemic levels in our community and across the country, our Office will not stand for a member of the medical community defrauding the health care system by illegally prescribing such medications,” said U.S. Attorney Hochul. “When used appropriately, prescription pain medications can be of great benefit to a patient but when abused, they can lead to a lifetime of addiction resulting in serious, even deadly complications. Our Office, along with our law enforcement partners, will not hesitate to prosecute those in the medical profession who abuse their positions of trust.”
Gillick and his girlfriend Christina Guilfoyle were arrested in November 2012. Charges are pending again Guilfoyle.
The plea is the result of an investigation on the part of Special Agents of the United States Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Rcihard M. Frankel, the New York State Police, under the direction of Major Michael Cerretto, Customs and Border Protection, under the direction of James Engleman, Director of Field Operations, The New York State Attorney General Medicaid Fraud Control Unit, the Amherst Police Department, under the direction of Chief John Askey, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Lancaster Police Department, under the direction of Chief Gerald Gill, the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, the Depew Police Department, under the direction of Chief Stan Carwile, and the Niagara County Sheriff’s Drug Task Force, under the direction of Sheriff James Votour.
Two New Haven Drug Dealers Sentenced to Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that two men involved in New Haven-area drug trafficking were sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven. EZEL BUCHANAN, also known as “E.Z.,” 34, of Hamden, was sentenced to 72 months of imprisonment, followed by five years of supervised release, and JERMAINE GALBERTH, also known as “Maine,” 27, of New Haven, was sentenced to 24 months of imprisonment, followed by three years of supervised release.
BUCHANAN and GALBERTH and more than 100 other individuals were charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants and seizures of narcotics and firearms. The investigation revealed that BUCHANAN conspired with others to purchase and redistribute crack cocaine, and that GALBERTH conspired to distribute heroin.
On September 27, 2012, BUCHANAN pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of cocaine base (“crack cocaine”). BUCHANAN’s criminal history includes six felony convictions, including four felony drug convictions.
On April 15, 2013, GALBERTH pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys S. Dave Vatti and Marc Silverman.
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(203) 821-3722 [email protected]Texas Man Convicted in $3.9 Million Money Laundering SchemeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that following a week long jury trial before U.S. District Court Judge Christopher C. Conner, a Texas man was convicted on July 19 on 14 Conspiracy and Money Laundering counts stemming from a scheme to defraud hundreds of victims across the country, including several from central Pennsylvania, out of more than $3.9 million and to launder the proceeds.
Olufemi Adigun, age 27, of Stafford, Texas, was indicted in December 2012 along with two other defendants, Uchechukwu Stanley Ohiri, age 29, and Benjamin Chikwe, age 32, both of Houston, Texas.
According to U.S. Attorney Peter J. Smith, the trial revealed that in 2008, Adigun operated MoneyGram and Western Union outlets out of an empty Houston storefront known as “FAB Tax Services,” a fictional tax service provider. The storefront was used by Adigun and his codefendants to intercept and launder $3.9 million sent by victims defrauded by advance fee, mass marketing schemes via the MoneyGram and Western Union money transfer systems.
The schemes rely heavily upon the MoneyGram and Western Union money transfer systems for success. More commonly known as Secret Shopper, Advance Fee, or Canadian Lottery schemes, perpetrators contact victims via the U.S. mail or the internet promising large cash prizes, lottery winnings, fictitious loans, or automobiles and motorcycles for sale. Counterfeit checks are sometimes sent to the victims who are induced into depositing them before returning a portion of the funds to the fraudsters via the MoneyGram and Western Union money transfer systems. The victims suffer a financial loss when the counterfeit checks bounce or after they send the fraudsters thousands of dollars of their own money for non-existent merchandise.
Adigun and his codefendants would intercept the victims’ money transfers and launder the proceeds before sending the proceeds back to the fraudsters minus a money laundering fee, typically 10-20%. Adigun and his codefendants would also enter false payee identification information into the MoneyGram and Western Union databases, thereby maintaining the anonymity of the fraudsters and creating the illusion that a bona-fide payee had physically entered the receiving outlet.
In almost all of the schemes the victim sender is instructed to provide the Money Transfer Reference Number (MTRN) to the fraudster immediately after the transfer is sent. Armed with the MTRN, FAB Tax Services or any other corrupt money transfer agent could query the MoneyGram and Western Union money transfer databases and remove the funds from the systems, even though FAB was physically located thousands of miles away from the intended payee.Adigun began operating FAB as a Western Union outlet in December 2007 and as a MoneyGram outlet in May 2008. Thereafter, more than 500 customers filed Consumer Fraud Reports (CFRs) with the two companies complaining they had been defrauded. The investigation revealed all 500 of the transfers had been paid out at FAB. As a result, MoneyGram and Western Union terminated FAB on August 20, 2008 and September 2, 2008 respectively. By that time, however, more than 1,241 victims had been defrauded out of $3,919,711. Adigun and his codefendants laundered $3.1 million of the $3.9 million by converting it into cash, withdrawing as much as $70,000 to $80,000 a day from 3 FAB bank accounts they controlled in the greater Houston area. The trio also forwarded another $650,000 offshore via the MoneyGram and Western Union money transfer systems, primarily to Canada, Nigeria and Romania. More than $100,000 of the offshore transfers were sent to just one MoneyGram agent in Toronto, which was also later closed for money laundering activity.
Adigun’s codefendant, Benjamin Chikwe, pleaded guilty to conspiracy to commit money laundering and is awaiting sentencing. Uchechukwu Stanley Ohirihas remains a fugitive.
Following the conviction, Judge Conner revoked release and committed Adigun to prison pending the sentencing in October.
This case was investigated by the Harrisburg Office of the U.S. Postal Inspection Service and was prosecuted by Assistant United States Attorney Kim Douglas Daniel.
The Postal Inspectors’ investigation has resulted in the conviction of more than 21 corrupt MoneyGram and Western Union agents from across the United States and Canada in the Middle District of Pennsylvania. The Postal Service’s investigation has also resulted in the prosecution of MoneyGram in the Middle District for aiding and abetting wire fraud, and for its failure to maintain an effective anti-money laundering program as required by federal law. In November 2012 the Company entered into a Deferred Prosecution Agreement with the government that required MoneyGram to pay $100,000,000 into a victim’s restitution fund, to make substantive improvements to its anti-money laundering programs, and to retain a Corporate Compliance Monitor selected by the government for the next five years.
Romanian Man Pleads Guilty to On-Line Auction FraudRead the Press Release
A Romanian citizen who traveled to Seattle in April 2013 in an attempt to scam participants in internet auctions pleaded guilty today in U.S. District Court in Seattle to bank fraud, announced U.S. Attorney Jenny A. Durkan. DANIEL MUNTEANU, 29, was arrested May 1, 2013 at Seattle-Tacoma International Airport as he attempted to board a flight to Amsterdam. While in Seattle MUNTEANU used phony passports to establish bank accounts and mail box rentals. Using the accounts and mail drops, he and co-conspirators scammed various participants in eBay auctions. MUNTEANU is scheduled for sentencing by U.S. District Judge Martinez on October 24, 2013.
According to records filed in the case, MUNTEANU’s co-conspirators picked victims by contacting those who had been unsuccessful in bidding for boats, cars, farm equipment or other vehicles on eBay. Posing as sellers, the co-conspirators would seek to negotiate the sale of the item the victim had bid on in the auction. After striking a deal, victims would receive emails appearing to be from eBay and their “Purchase Protection Plan.” The emails even had a link to an eBay “live help” function. But the emails and links were fraudulent. Purchasers thought their payments were going into a secure escrow account until they could inspect the vehicles. Instead, the purchasers’ money went directly to accounts opened in false names by MUNTEANU using phony passports. MUNTEANU controlled the accounts and quickly moved the money off shore to co-conspirators in Romania. In all, five victims suffered losses of more than $120,000.
“This type of fraud erodes trust and undermines legitimate online commerce, and we will track down and prosecute scam artists,” said U. S. Attorney Jenny A. Durkan. “I appreciate the efforts of the Homeland Security Investigations agents who pursued this case and protected the victims.”
“The vast majority of online auctions are legitimate, which leaves consumers who’ve had positive online buying experiences with a false sense of security,” said Brad Bench, special agent in charge of HSI Seattle. “The defendant and his co-conspirators in this case exploited this vulnerability to swindle their victims. While HSI works closely with its enforcement partners here and overseas to aggressively target this type of crime, consumers must take steps to protect themselves.”
Bank Fraud is punishable by up to 30 years in prison and a $1,000,000 fine.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Kate Vaughan.
Press contact for the U.S. Attorney’s Office is Thomas Bates at (206) 553-7970 or [email protected].
Post Falls Man Pleads Guilty to Producing Images of Sexually Explicit Conduct Involving A Three-year-old ChildRead the Press Release
COEUR D’ALENE – Dylan Joral Ritter, 29, of Post Falls, Idaho, pleaded guilty today in United States District Court in Coeur d’Alene to production of child pornography, U.S. Attorney Wendy J. Olson announced. A federal charge was brought against Ritter on May 20, 2013.
According to his plea agreement, Ritter came to the attention of law enforcement in May 2012, when an agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI) discovered that Ritter had been making child pornography available on the Internet. In July 2012, a federal search warrant was executed at Ritter’s Post Falls residence. Ritter admitted that he had been downloading child pornography over the Internet. He also admitted that he had been sexually abusing a three-year-old relative and had taken photos of this sexual contact with his cell phone. An ICE forensic examiner located the images on Ritter’s cell phone. A Post Falls Police detective used the images to accurately identify the child.
The charge of sexual exploitation of a child by producing sexually explicit images is punishable by 15 to 30 years in prison, a maximum fine of $250,000, and a minimum term of five years up to lifetime supervised release. The government is seeking forfeiture of the computer equipment and cell phone used in the offense.
Sentencing is set for October 16, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Post Falls Police Department, and the Federal Bureau of Investigation. The agencies are North Idaho members of the Idaho Internet Crimes Against Children (ICAC) Task Force, a statewide coalition of local, state and federal law enforcement and prosecution agencies, focused on apprehending and prosecuting individuals who use the Internet to criminally exploit children. For more information about the Idaho ICAC Task Force and a list of all the participating agencies, visit www.icacidaho.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Philadelphia Man Sentenced for Defrauding Former Property Owners and Their FamiliesRead the Press Release
PHILADELPHIA - Amin A. Rashid, a/k/a “Lawrence D. Wilson,” 63, of Philadelphia, was sentenced today to 240 months in prisoin for mail fraud and aggravated identity theft in connection with a three-year fraud scheme. The scheme defrauded former property owners and their families of over $650,000. Rashid was convicted at trial on July 12, 2011. In addition to the prison term, U.S. District Court Judge Cynthia M. Rufe ordered restitution of $782,391, a $1700 special assessment, and five years of supervised release.
From at least December 2005 to August 2008, Rashid operated “The Center for Constitutional and Criminal Justice” under the guise of assisting former owners of properties sold at Sheriff’s sale. Rashid told these clients that he could help recover their properties or the proceeds from the Sheriff’s sale. Rashid took fees from these clients and photocopies of their drivers licenses but typically did nothing in return.Rashid altered his clients’ driver’s licenses and submitted them to a title company along with forged power of attorney documents to steal Sheriff’s sale proceeds due to other former property owners. The forged power of attorney documents carried signatures of former property owners who actually died years before they purportedly signed the documents. In addition, Rashid submitted bogus corporate resolutions that purportedly authorized him to collect Sheriff's sales proceeds that were due to these corporations. Rashid used his family members to pose as officers of these corporations.
The case was investigated by the United States Postal Inspection Service, the Philadelphia County District Attorney’s Office, and the Philadelphia Police. It was prosecuted by Assistant United States Attorney Vineet Gauri.
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PATTY HARTMAN, Media Contact, 215-861-8525Panama City Man Indicted on Child Exploitation ChargesRead the Press Release
PANAMA CITY, FLORIDA – A federal Grand Jury returned an indictment last week charging Daniel Freiwald (29), an active duty Air Force member stationed at Tyndall Air Force Base, with 3 counts of child exploitation offenses. The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Counts One and Two of the Indictment allege that between December 7, 2012, and January 23, 2013, Freiwald knowingly and intentionally distributed and received images and videos of child pornography. Count Three alleges that during that same time frame, Freiwald knowingly possessed child pornography. If convicted of counts one and two of his indictment, Freiwald faces a sentence of a mandatory five (5) years to a maximum of twenty (20) years in prison. If convicted on count three of his indictment, Freiwald faces a term of imprisonment of not more than ten (10) years. Additionally, as to each count, Freiwald faces the imposition of a fine of up to $250,000, not less than five (5) years and up to a lifetime term of supervised release, and a $100 special monetary assessment.
Freiwald appeared for his initial appearance and arraignment in United States District Court in Panama City, Florida. Freiwald pled not guilty to the charges and his trial was scheduled for September 23, 2013 before United States District Judge Richard Smoak.
The Indictment results from an investigation by agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Pensacola Police Department, and the North Florida Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorney Kathryn Risinger.
An Indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Owner of Nine Marijuana Stores in Orange and Los Angeles Counties Sentenced to 262 Months for Drug Trafficking and Tax EvasionRead the Press Release
SANTA ANA, California – A San Clemente man who owned and operated a string of nine illegal marijuana stores that generated at least $25 million in profits was sentenced today to 262 months in federal prison.
John Melvin Walker, also known as “Pops,” 56, of San Clemente, was sentenced by United States District Judge James V. Selna. In addition to the prison term, Judge Selna ordered Walker to pay the Internal Revenue Service $2,415,409.29 and California State Board of Equalization $1,857,280.00 in restitution.
Walker pleaded guilty in April to two felony counts – one count of conspiring to distribute well over a ton of marijuana and maintaining drug-involved premises, and one count of tax evasion.
“Drug use and addiction continue to have devastating impact on far too many lives. Today's sentence demonstrates DEA's commitment to our communities and children by working with our law enforcement partners to investigate and bring to justice those who supply these dangerous drugs,” said Special Agent in Charge Anthony D. Williams.
Walker was the lead defendant in a 14-defendant indictment returned by a federal grand jury last fall. The indictment outlined a drug-trafficking conspiracy led by Walker, who owned and operated at least nine marijuana stores in cities across Los
Angeles and Orange counties. The nine marijuana stores were located in Long Beach, Dana Point, Garden Grove, Santa Ana, Santa Fe Springs, Costa Mesa, Whittier, and San Juan Capistrano.Walker was “the kingpin of a large, organized criminal enterprise awash in narcotics, firearms, and, most of all, money,” prosecutors wrote in a sentencing brief.
Walker admitted in the federal tax case that he earned approximately $25 million from marijuana sales over the course of six years. Walker specifically admitted that he earned $11.4 million in 2009, but reported to the Internal Revenue Service only a tiny fraction of that income. As part of his plea agreement, Walker agreed to pay the IRS more than $2.4 million in back taxes for years 2006 through 2011, as well as $1.8 million in restitution to the California Board of Equalization. In addition to the $4.2 million he has agreed to pay to federal and state tax authorities, Walker agreed to forfeit to the government $25 million in illegally obtained income, which includes, among other assets, more than $500,000 in cash previously seized by law enforcement authorities, his multi-million dollar home in San Clemente, a string of mobile homes in Mammoth Lakes, rental properties in Long Beach, and his interest in two strip clubs.
The sentencing memo filed by prosecutors argued that Walker’s “conduct was not the result of some misplaced idealism or altruistic instinct, but was rather driven by his insatiable quest for the massive illicit profits generated by his crimes, and the luxurious lifestyle those profits bought.”
Walker, a twice convicted felon, also admitted that he possessed firearms in relation to the drug-trafficking offense. Authorities discovered in one of Walker’s “stash houses” an AK-47-style assault rifle, three other firearms and ammunition.
Walker “wanted to be called ‘Pops’ for a reason,” according to the government’s sentencing memorandum. “He was in charge of this criminal organization. This was his scheme and he was the only authority that mattered in his criminal enterprise.”
Walker has been in custody since pleading guilty in this case on April 1.
The investigation into Walker’s chain of marijuana stores was conducted by the Orange County Sheriff’s Department; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; IRS-Criminal Investigation; the California Board of Equalization; and the Orange County District Attorney’s Office.Release No. 13-096
Omaha Man Given 24 Month Prison Sentence for Pointing Laser at AircraftRead the Press Release
United States Attorney Deborah R. Gilg announced that Michael A. Smith, age 30 of Omaha, Nebraska, was sentenced in federal court in Omaha for shining a laser pointer at a police helicopter. The Honorable John Gerrard sentenced Smith to 24 months in prison to be followed by a 3 year term of supervised release.
On April 24, 2013, Smith was convicted by a federal jury, following a 2 day trial, for striking an Omaha Police Department helicopter with a laser pointer in Northwest Omaha. The police helicopter was responding to a Southwest Airlines commercial flight which reported that it had been struck by a laser one hour earlier.
Smith is the first person indicted in the District of Nebraska under a new federal law making it a federal crime to target aircrafts with lasers. According to the Federal Aviation Administration, lasers can temporarily blind a pilot and make it impossible to safely land an aircraft. Smith faced a maximum penalty of up to five years in prison.
This case was investigated by the Federal Bureau of Investigation, the Federal Air Marshal Service, the Douglas County Sheriff’s Office and the Omaha Police Department.New York Doctor Sentenced to Nine Years in Prison for Oxycodone Distribution and ConspiracyRead the Press Release
TRENTON, N.J. – A physician who wrote illegal prescriptions for oxycodone was sentenced today to 108 months in prison for his participation in a conspiracy to illegally distribute the medication, U.S. Attorney Paul J. Fishman announced.
Dr. Hassan Lahham, 55, of New York, previously pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to Count One of an Indictment charging him with conspiring to distribute oxycodone.
According to documents filed in this case and statements made in court:Since January 2009, Lahham issued prescriptions to co-conspirators for drugs containing oxycodone, outside the usual course of medical practice and not for any legitimate medical purpose. The prescriptions were filled at various New Jersey pharmacies located in and around Monmouth, Ocean, and Atlantic counties and redistributed by others. Lahham wrote the prescriptions in exchange for cash payments, and knew the pills were to be redistributed.
Oxycodone, the active ingredient in brand name pills such as Oxycontin, Roxicodone and Percocet, is a Schedule II controlled substance – meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.
In addition to the prison term, Judge Wolfson sentenced Lahham to three years of supervised release.U.S. Attorney Fishman credited the Drug Enforcement Administration’s New Jersey Division under the direction of Special Agent in Charge Carl J. Kotowski, along with the Special Agents, Diversion Investigators, Task Force Officers, Detectives and Intelligence Analysts of the Atlantic City Resident Office; Camden Resident Office Diversion Group; Seaside Heights Police Department; Barnegat Police Department; Ship Bottom Police Department; and the N.J. DEA Tactical Diversion Squad, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Fabiana Pierre-Louis of the U.S. Attorney’s Office in Trenton.
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Defense counsel: Frank P. Arleo Esq., West Orange, N.J.
New York Doctor Sentenced to Nine Years in Prison for Oxycodone Distribution and ConspiracyRead the Press Release
TRENTON, N.J. – A physician who wrote illegal prescriptions for oxycodone was sentenced today to 108 months in prison for his participation in a conspiracy to illegally distribute the medication, U.S. Attorney Paul J. Fishman announced.
Dr. Hassan Lahham, 55, of New York, previously pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to Count One of an Indictment charging him with conspiring to distribute oxycodone.
According to documents filed in this case and statements made in court:Since January 2009, Lahham issued prescriptions to co-conspirators for drugs containing oxycodone, outside the usual course of medical practice and not for any legitimate medical purpose. The prescriptions were filled at various New Jersey pharmacies located in and around Monmouth, Ocean, and Atlantic counties and redistributed by others. Lahham wrote the prescriptions in exchange for cash payments, and knew the pills were to be redistributed.
Oxycodone, the active ingredient in brand name pills such as Oxycontin, Roxicodone and Percocet, is a Schedule II controlled substance – meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.
In addition to the prison term, Judge Wolfson sentenced Lahham to three years of supervised release.U.S. Attorney Fishman credited the Drug Enforcement Administration’s New Jersey Division under the direction of Special Agent in Charge Carl J. Kotowski, along with the Special Agents, Diversion Investigators, Task Force Officers, Detectives and Intelligence Analysts of the Atlantic City Resident Office; Camden Resident Office Diversion Group; Seaside Heights Police Department; Barnegat Police Department; Ship Bottom Police Department; and the N.J. DEA Tactical Diversion Squad, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Fabiana Pierre-Louis of the U.S. Attorney’s Office in Trenton.
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Defense counsel: Frank P. Arleo Esq., West Orange, N.J.
New Jersey Man Sentenced on Sex Trafficking ChargesRead the Press Release
DES MOINES, IA – On July 19, 2013, Johnelle Lewis Bell, age 29, of Hammonton, New Jersey, was sentenced in United States District Court in Des Moines on charges of sex trafficking and associated charges, announced United States Attorney Nicholas A. Klinefeldt. Chief United States District Court Judge James E. Gritzner sentenced Bell to a net term of imprisonment of 360 months, to be followed by 5 years of supervised release. Bell was also ordered to pay a $1,200.00 special assessment for the Crime Victim Fund. Bell remained in the custody of the United States Marshal’s Service pending designation of the Federal Bureau of Prisons facility at which he will serve his sentence.
There is no parole in the federal system. Bell will serve an estimated 85% of his sentence of imprisonment, then be placed on supervised release. If Bell violates the conditions of his supervised release, a judge could sentence him to further imprisonment.
“Defendant Johnelle Bell essentially enslaved these women, and forced them to commit sex acts for his financial gain. Bell’s sentence, which he must serve 85% of, reflects the seriousness of his crime,” said United States Attorney Nicholas Klinefeldt.
In all, Bell was sentenced on 12 charges. The charges and respective sentences are as follows:
• Count 1, conspiracy to commit sex trafficking: 360 months imprisonment;
• Counts 2 and 3, sex trafficking: 180 months imprisonment on each count;
• Counts 4-7, coercion or enticement to travel in interstate commerce for prostitution: 240 months imprisonment on each count;
• Count 8, conspiracy to transport in interstate commerce for prostitution: 60 months imprisonment;
• Counts 9-12, transportation in interstate commerce for prostitution: 120 months imprisonment on each count.
All of the sentences were imposed to run concurrently.
Bell was originally indicted in a twelve-count indictment on April 26, 2012, and a twelve-count superseding indictment was returned by the Federal Grand Jury on November 6, 2012. On November 20, 2012, following an almost week-long trial, a federal jury in Council Bluffs found Bell guilty of all twelve counts with which he was charged.
The charges arose from a prostitution sting operation on June 18, 2011, by the Child Exploitation Task Force (formerly the Great Plains Innocence Lost Task Force) operating in the Omaha-Council Bluffs area. The Task Force is led by the Omaha Office of the Federal Bureau of Investigation, and at the time of this sting operation, included officers from the Council Bluffs Police Department, the Southwest Iowa Narcotics Enforcement Task Force, and the Omaha Police Department. Agents from FBI offices other than Omaha were also participating in this operation. The Task Force emphasizes crimes against minors, but also investigates adult sex trafficking cases discovered in the course of its pro-active investigations. While this case dealt primarily with young adult females roughly 19-23 years of age, at least two of the young adults involved in this case reported becoming engaged in prostitution as minors, by at least about ages 16 or 17.
“This sentencing removes an evil predator from the streets and prevents him from exploiting others”, said FBI Special Agent in Charge Thomas R. Metz. “The FBI led Child Exploitation Task Force will continue to aggressively pursue and bring to justice individuals such as Bell who prey on others in such a cruel manner.”
On June 18, 2011, answering ads for prostitution on Backpage.com, for Omaha, Nebraska and Council Bluffs, Iowa, an undercover FBI agent posing as a customer arranged a “date” for prostitution. At the ensuing raid, agents and officers encountered Johnelle Lewis Bell and three adult females engaged in prostitution. The resulting federal investigation uncovered a sex trafficking venture involving Bell and as yet to be formally identified “pimp partners,” centering around Little Rock, Arkansas. Evidence produced at trial showed the traveling prostitution venture operating in at least Arkansas, Iowa, Nebraska, Kansas, Colorado, Pennsylvania, Maryland, South Carolina, Louisiana, Georgia, Alabama, Texas, and Tennessee. Two of the sex trafficking counts related to incidents in May and June of 2011 in Des Moines, Iowa. Prostitution adds by Bell were also posted in the Quad Cities area of Iowa and Illinois, and in the Omaha-Council Bluffs area of Nebraska and Iowa.
Young adult women formerly working as prostitutes for Bell testified at trial regarding their histories of very troubled childhoods, mental and emotional problems, homelessness and lack of material support, and substance abuse. These victims testified that Bell lured them to work for Bell on promises of love and long-lasting personal relationships, and help with problems in their lives. However, once they engaged in prostitution for Bell, the promises evaporated, and all of the money from the sex acts they performed at Bell’s direction, went to Bell.
One of the victims testified she was repeatedly physically assaulted by Bell, including being whipped with a belt and severely beaten on at least two other occasions, in part for “disrespecting” her pimp, Bell; for threatening to go to the police; for falling asleep while she was supposed to be engaged in prostitution for Bell; to force her to commit sex acts she did not want to commit; and to keep her from leaving Bell as a prostitute working under his control. According to this witness, Bell not only physically beat her, but also threatened the victim, her family, and her very young child with serious harm or death if she did not do as Bell told her. According to testimony at trial, her ordeal ended on June 18, 2011, when she was, with others, rescued by members of the Task Force operating in the Omaha-Council Bluffs area.
Another victim testified about having been at a “party-weekend” with Bell and others, and then being held by Bell against her will for approximately a week, moved from state to state by Bell, and forced by Bell to engage in prostitution. The victim testified that she was forced to stay with Bell and engage in prostitution under his control, by Bell’s threats of seriously harming or killing the victim, her family, and particularly the victim’s 2-3 year old daughter, and because she knew that another young woman under Bell’s control had been very badly treated by Bell. According to testimony at trial, her ordeal also ended on June 18, 2011, about a week after Bell forced her to be under his control.
Brittany Lawson, age 23, of Hot Springs, Arkansas, a co-defendant of Bell’s, pled guilty on October 12, 2012, to Count 1 of the original Indictment, conspiracy to commit sex trafficking. Ms. Lawson was sentenced on February 25, 2013, in Council Bluffs, by Chief United States District Court Judge James E. Gritzner, to 50 months imprisonment, to be followed by 5 years of supervised release, and a $100.00 special assessment for the Crime Victims Fund. Lawson is currently serving her term of imprisonment. Lawson was, throughout much of the conspiracy, the prostitute who assisted Bell in managing the other prostitutes. None of the acts of force, fraud or coercion alleged against Bell were alleged to have been committed by Lawson. However, she knew what was happening to the other prostitutes and still managed them for Bell.
This case was investigated by the Federal Bureau of Investigation, the Council Bluffs Police Department, the SouthWest Iowa Narcotics Enforcement Task Force, and the Omaha Police Department, and had assistance from other law enforcement in a number of states. The investigation of this case took place in Iowa, Nebraska, Arkansas, Louisiana, Pennsylvania and other locations. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
The task force which worked this case and is working others in Iowa and Nebraska, primarily in the Omaha-Council Bluffs Metro Area, is being expanded to include other law enforcement agencies. Further, the task force could not do its work without the substantial assistance of victims by victim treatment and advocacy agencies in the area and elsewhere. The task force has significant ties with emergency care, shelter, and other government and non-government agencies throughout the area and beyond, providing needed security, and emergency and long-term care to victims of human trafficking. Both the FBI and United States Attorney’s Office Victim Specialists are active in working with these other agencies to ensure and enhance the treatment and other assistance needed when victims of sex trafficking are encounter
(Download Press Release )
Multiple Defendants Charged in Allegheny County-Beaver County Prescription Drug RingRead the Press Release
PITTSBURGH, Pa. - Twelve western Pennsylvania residents have been indicted by a federal grand jury alleging their participation in a prescription drug ring operating in Allegheny and Beaver Counties, United States Attorney David J. Hickton announced today. The indictments were returned on July 16, 2013, and unsealed this week.
“These indictments charge participants at all levels of a western Pennsylvania oxycodone and Opana distribution ring - from the leader, to the prescription thief, to the pharmacy burglars, to the runners who presented the fake prescriptions to be filled,” said U.S. Attorney Hickton. “Dismantling these operations continues to be a priority of this office as we endeavor to address the prescription drug abuse epidemic. As this case illustrates, abuse of prescription pills can result in grave harm and death.”
“Prescription drug abuse encompasses far more than the act of selling drugs; it often involves property crimes and crimes of violence. It is a serious threat to our communities and children. In 2011 for example, there were 2.3 million persons age 12 and older who used prescription drugs for the first time for non-medical reasons,” said Drug Enforcement Administration (DEA) Special Agent in Charge David G. Dongilli. “DEA is committed to confronting this threat to public health and will continue to target those who would profit from the illegal sales of prescription drugs without regard to the damage it causes to people and communities. DEA wishes to thank the U.S. Attorney’s Office for their support in this prosecution.”
A 12-count indictment charging violations of federal narcotics, firearms and burglary laws named:
- David Best, 27, of Coraopolis, Pa.;
- Matthew Moody, 24, of Baden, Pa.;
- Jade Gagianas, 28, of Freedom, Pa.;
- Katie Adams, 27, of Ambridge, Pa.;
- Andrew Brown, 23, of Eighty Four, Pa.;
- Ryan Raithel, 33, of Wexford, Pa.; and,
- Carlos Martinez, 26, of Ambridge, Pa.
Count 1 charges Best, Moody, Gagianas, Adams, Brown, and Raithel with conspiring together and with others, from around December 2011 until May 2013, to distribute and possess with intent to distribute the Schedule II controlled substances oxycodone and oxymorphone, in the form known as Opana.
Counts 2 through 4 charge Best with distributing oxycodone and oxymorphone, in the form known as Opana, on May 8, 2012, April 18, 2013, and April 30, 2013. Count 4 alleges that when Best distributed both oxycodone and Opana on May 8, 2012, a person known to the grand jury died as a result of his use of the drugs.
Count 5 charges that Best, on or about June 20, 2012, used, carried, and brandished a firearm during and in relation to a drug trafficking crime (the conspiracy).
Counts 6 through 11 reflect charges that on three occasions, Dec. 1, 2011, Sept. 26-27, 2012, and Feb. 15, 2013, Best burglarized the MedFast pharmacy in Baden, Pa., and from that pharmacy stole a number of Schedule II controlled substances, including: fentanyl, oxymorphone, including in the form known as Opana, Ritalin, oxycodone, including in the form known as Oxycontin, methylphenidate, Vyvanse, morphine sulfate, Roxicet, Focalin, methylphenidate, hydromorphone, methadone, and meperidine. Adams and Martinez are also charged with the Sept. 26-27, 2012, burglary of that pharmacy.
Finally, Count 12 charges Raithel with distributing a quantity of a mixture and substance containing a detectable amount of heroin, a Schedule I controlled substance, on or about Aug. 10, 2012.
On the drug conspiracy charge, the possession with the intent to distribute and distribution charges, and pharmacy burglary charges, the law provides for a maximum total sentence as to each count of 20 years in prison, a fine of up to $1,000,000 ($250,000 for the pharmacy burglaries), or both. When death results from the use of illegally distributed Schedule I or II drugs, the penalty increases to a mandatory minimum of 20 years and a maximum of life imprisonment. Finally, for the firearms charge, there is a mandatory minimum of seven years, a maximum of life imprisonment, and a fine of up to $250,000. Any penalty imposed on the firearms charge must run consecutively to any other penalty. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
In a separate but related indictment, two residents of Western Pennsylvania have been indicted on a charge of witness intimidation. The one-count indictment named:
- Natalie Moskorisin, 23, of Ambridge, Pa.; and
- Wesley Weaver, 23, of Coraopolis, Pa.
According to the indictment, on or about June 6, 2013, in the Western District of Pennsylvania, Moskorisin and Weaver knowingly intimidated and attempted to intimidate witnesses in a federal proceeding, that being the federal investigation and prosecution of David Best.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
Three additional Pittsburgh-area residents were indicted separately on charges of violating federal narcotic laws.
A one-count indictment charges that on Sept. 19, 2012, Janna Gahagan, 29, of Pittsburgh, Pa., conspired with others to obtain oxycodone by fraud, in that she passed a fraudulent oxycodone prescription at a pharmacy, thereby obtaining oxycodone pursuant to that fraudulent prescription.
Another one-count indictment charges that from March 23, 2012, and continuing until July 17, 2012, Breanne McKee, 29, of Saxonburg, Pa., conspired with others to obtain oxycodone and oxymorphone, in the form known as Opana, by fraud, in that she passed fraudulent prescriptions at area pharmacies, thereby obtaining oxycodone and oxymorphone pursuant to those fraudulent prescriptions.
Finally, a one-count indictment charges that on or about April 26, 2013, Christopher Nugent, 34, of Pittsburgh, Pa., conspired with others to obtain oxycodone by fraud, in that he passed a fraudulent oxycodone prescription at a pharmacy, thereby obtaining oxycodone pursuant to that fraudulent prescription.
For Gahagan, McKee and Nugent, the law provides for a maximum total sentence of not more than four years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting these cases on behalf of the government.
The Drug Enforcement Administration and the Economy Borough and Cranberry Township Police Departments conducted the investigation leading to the indictment in these cases.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Mtn. Home Man Sentenced for Child Pornography OffenseRead the Press Release
Son Convicted and Sentenced Last Year for Possessing Sexually Explicit Images of Minors
BOISE – U.S. Attorney Wendy J. Olson announced today that Michael John Ebenhoeh, 53, of Mountain Home, was sentenced to 48 months in prison followed by five years of supervised release for possession and access with intent to view sexually explicit images of minors. Ebenhoeh appeared this morning before the Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise. He pleaded guilty to the charge on April 18, 2013.
According to court documents, members of the Idaho Internet Crimes Against Children Task Force determined that between November 10, 2010, and July 18, 2011, multiple digital files known to contain child pornography involving very young children were being downloaded and offered for sharing from a residence in Mountain Home, Idaho. On September 28, 2011, a search warrant was executed at the residence and several computers were seized. At the time of the search, Ebenhoeh’s son, Joseph, 27, was arrested. Joseph subsequently pleaded guilty to possessing sexually explicit images of minors. He was sentenced in July 2012 to 210 months in prison followed by 25 years of supervised release.
On the day of the search, an investigator approached Michael Ebenhoeh and told him that a child pornography file had been found on his computer. At that time, Michael denied knowing how the child pornography files were on his computer.
Further investigation determined that there were separate Internet accounts in the home associated with Michael and his son, and that the computer that belonged to Michael had not been used by his son. According to the plea agreement, investigators again interviewed Michael, who then admitted he had lied to the police previously. He further admitted that four or five times a week for the previous year he had used the computer to search online for pornography depicting children. Investigators found sexually explicit images of children between the ages of two and 14 years of age on Michael's computer. Several of the children depicted were identified as sexual abuse victims from Missouri, Nevada, Maryland and Washington State.
The case was investigated by Boise Police Department detectives who are members of the Idaho Internet Crimes Against Children Task Force (ICAC), with assistance from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Mountain Home Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, visit www.usdoj.gov/psc.
For more information about Internet safety education, visit www.usdoj.gov/psc and click on the tab “resources.” For more information about registered sex offenders in Idaho, visit www.isp.idaho.gov/sor_id/.
Mercury Ambulance Service, Inc. (Rural/Metro) Agrees to Pay $40,000 Fine to Settle Allegations of Violations of the Federal Controlled Substances ActRead the Press Release
LOUISVILLE, Ky. – Mercury Ambulance Service, Inc. (MAS), d/b/a Rural/Metro, has voluntarily reached an agreement today, with the United States of America, to pay $40,000 to settle allegations that it violated the federal Controlled Substances Act, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the settlement agreement, the United States contends that MAS failed to maintain accurate records concerning the acquisition, administration, transfer and disposal of controlled substances as required by persons who dispense legally-produced drugs, as required among other things, by the Controlled Substances Act.
Specifically, the settlement states that on February 16, 2012, the Drug Enforcement Administration’s Office of Diversion Control conducted an investigation of MAS and noted seven alleged violations. Among those noted by the investigation were a failure by MAS to report the theft of morphine to DEA within one business day of discovery, and a failure by MAS to prevent further diversion of controlled substances by failing to provide effective controls and procedures to guard against theft and diversion. Other alleged violations included the failure to complete or failure to properly complete DEA forms, and failure by MAS to complete a biennial inventory and to produce required records for an audit period.
This agreement is neither an admission of liability by Mercury Ambulance Service nor a concession by the United States that its claims regarding the covered conduct are not well-founded.
This investigation was handled by Assistant United States Attorney Benjamin S. Schecter and was investigated by the United States Drug Enforcement Administration and the U.S. Food and Drug Administration, Office of Regulatory Affairs, Office of Criminal Investigations.
Littleton Police Officer Arrested for Drug Trafficking CrimesRead the Press Release
DENVER – Jeffery Allan Johnston, age 46, of Parker, Colorado, has been arrested based on a Criminal Complaint charging him with the drug trafficking related crimes, United States Attorney John Walsh, FBI Denver Special Agent in Charge Thomas Ravenelle and Littleton Police Chief Doug Stephens announced. Johnston was arrested without incident at his Parker home by the FBI on Friday, July 19, 2013. The Criminal Complaint was unsealed by the court today. Johnston appeared in U.S. District Court in Denver this afternoon, where he was advised of his rights and the charges pending against him. The government is asking the court that Johnston be held in custody without bond pending a resolution of his case. A detention hearing and a preliminary hearing is scheduled to take place on July 25, 2013 at 3:00 p.m.
The Criminal Complaint charges Johnston with possession of a mixture and substance containing a detectable amount of MDMA with intent to distribute; maintaining a drug-involved premises; possessing a firearm in furtherance of a drug trafficking crime; and using a telephone to facilitate a drug trafficking felony.
According to the affidavit in support of the arrest warrant, on July 15, 2013, Johnston contacted a friend via telephone. During the call, Johnston said he wanted to “catch up” with the friend. The person Johnston contacted is a known narcotics trafficker who has been invited to Johnston’s residence previously to distribute narcotics to guests at parties Johnston hosts. According to the friend, Johnston paid for 3,4-methylenedioxy methamphetamine (known as MDMA, Ecstasy or X) for his parties.
During the phone call Johnston asked if he could purchase between 40 and 50 Ecstasy pills from the source for between $15 to $20 each. They discussed the fact that some of the Ecstasy currently available was not well made. Johnston offered to use a test kit to confirm the quality of the Ecstasy. On July 19, 2013, the FBI conducted a controlled delivery of 37 Ecstasy pills and 6.3 grams of Ecstasy powder. Johnston paid $1,300 for the delivery. Following the exchange of Ecstasy and money, Johnston was taken into custody, and a search warrant was executed a Johnston’s residence.
Agents found the 10 grams of Ecstasy just delivered to Johnston in a kitchen drawer and a stainless steel Colt Officers Model .45 caliber pistol which was located in a small black bag on the counter above the drawer containing the Ecstasy. The pistol was loaded with seven .45 rounds of ammunition in the magazine and one .45 round in the chamber. Investigators also found suspected cocaine, suspected steroids, hundreds of suspected prescription pills, additional firearms, and hundreds of rounds of ammunition, all in his residence. Further, agents discovered evidence of drug trafficking in a kitchen drawer. In that drawer was empty pill pouches, a drug test kit and a scale.
In the Complaint, the preliminary charging document, Johnston faces: One count of possession of a mixture and substance containing a detectable amount of MDMA with intent to distribute, which carries a penalty of not more than 20 years in federal prison, and a fine of not more than $1,000,000; One count of maintaining a drug involved premises, which carries a penalty of not more than 20 years in federal prison, and a fine of not more than $500,000; One count of possession of a firearm in furtherance of a drug trafficking crime, which carries a penalty of not less than five years, and not more than life in federal prison, and a fine of up to $250,000; One count of using a telephone to facilitate a drug trafficking felony, which carries a penalty of not more than 4 years in federal prison, and up to a $500,000 fine.
This case was investigated by the Federal Bureau of Investigation (FBI). Those who may have information regarding this matter should contact the FBI at 303-629-7171.
Johnston is being prosecuted by Assistant U.S. Attorneys Guy Till and David Conner.
A Criminal Complaint is a probable cause charging document. Anyone accused of committing a federal felony crime has a Constitutional right to be indicted by a grand jury, thus finalizing the charges.
The charges contained in the Complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
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Leader Convicted in Scheme to Steal Nearly $1.4 Million from Housing Authority of Baltimore City AccountRead the Press Release
Transferred Funds Out of Housing Authority’s Bank Account
Baltimore, Maryland - A federal jury today convicted Daren Kareem Gadsden, aka “D,” age 36, of Upper Marlboro, Maryland, on charges related to a conspiracy to steal almost $1.4 million from a Housing Authority of Baltimore City bank account.
The guilty verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief James W. Johnson of the Baltimore County Police Department.
“Daren Gadsden stole from the Baltimore City Housing Authority by transferring money directly out of the Authority’s bank account,” said U.S. Attorney Rod J. Rosenstein. “The $1,399,700 in taxpayer funds stolen from the Baltimore City Housing Authority was supposed to be used to provide housing, not to line the pockets of criminals.”
According to information presented at his six day trial, in 2009, Gadsden owned a property in Baltimore that was rented to a low income individual, whose rental payments were paid by the Housing Authority of Baltimore City, from its account directly to Gadsden’s bank account. Witnesses testified that in late 2009 and 2010, Gadsden made a series of inquiries to another bank where he had an account about how to use his computer to make electronic transfers to and from his account at that bank. In early 2010, the Housing Authority lost a few thousand dollars when a series of unauthorized electronic transfers debited funds out of the Housing Authority’s account and into Gadsden’s bank account. After being confronted by Housing Authority officials, Gadsden denied any wrongdoing, but paid the Housing Authority $1,400 to cover some of its losses.
The evidence showed that from early 2010 until at least September 17, 2010, Gadsden and several co-defendants conspired to execute a larger scheme to defraud the Housing Authority. Specifically, Gadsden contacted Tyeast Brown to plan the fraud. Brown, in turn, contacted William Alvin Darden and Keith Eugene Daughtry, securing from Daughtry his social security card and birth certificate, which she provided to Darden. On May 19, 2010, Darden obtained a Maryland driver’s license with his photograph, but in Daughtry’s name, using Daughtry’s social security card and birth certificate as proof of identity. Darden then used the fraudulent license to open a bank account in the name of Keith Daughtry Contracting LLC. Gadsden had registered the entity with the state of Maryland, only a few days before, under a different, misspelled name. Darden also provided a mailing address for the company that was actually a mailbox rented by the conspirators at a commercial mailing store.
According to witness testimony, beginning in July, 2010, Gadsden and his co-conspirators electronically transferred funds from the Housing Authority’s bank account and into the Keith Daughtry Contracting LLC account. The conspirators then drained the stolen Housing Authority funds from the Keith Daughtry Contracting account by electronic transfers into accounts at other banks, in-person cash withdrawals and from automated teller machines. In addition, the conspirators electronically transferred funds from the Keith Daughtry Contracting account onto debit cards in the names of other individuals. For example, Gadsden opened a debit account in the name of another individual, using that person’s identity information without their knowledge or permission.
The evidence showed that Gadsden also tampered with evidence, deleting the contents of at least two email accounts after he was contacted by an FBI Special Agent. The accounts were provided as the points of contact for certain debit cards Gadsden opened using stolen identity information.
Gadsden faces a maximum sentence of 30 years in prison and a $1 million fine for the bank fraud conspiracy. Gadsden also faces a mandatory two years in prison, consecutive to any other sentence for aggravated identity theft, and 20 years in prison for one count each of attempting to tamper with evidence and for evidence tampering. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for October 24, 2013 at 1:00 p.m.
Tyeast Brown, aka “Peaches,” age 42, of Suitland, Maryland; William Alvin Darden, age 46, of Washington, D.C; and Keith Eugene Daughtry, age 52, of Washington, D.C. all pleaded guilty to their roles in the scheme. Daughtry and Brown were sentenced to 41 months and 36 months in prison, respectively, and each was ordered to pay restitution of $1,399,700. Darden is expected to be sentenced later this year.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
United States Attorney Rod J. Rosenstein thanked the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Sujit Raman and Gregory Bockin, who are prosecuting the case.
Larimer County Residents Indicted and Arrested on Conspiracy and Possession of A Schedule I Controlled Substance with Intent to Manufacture and DistributeRead the Press Release
DENVER – Five Larimer County residents were arrested late last week for conspiracy to distribute a controlled substance and possession of a controlled substance with intent to manufacture and distribute, U.S. Attorney John Walsh and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Kumar Kibble announced. The controlled substance in this case is commonly known as “Spice”. Playing a critical role in the investigation was the Northern Colorado Drug Task Force. The indictment was unsealed by the court today.
The five defendants arrested, Dien Le, Ponlue Pim, Pirun Pim, Ricky Pim, and Kenneth Barnes appeared in U.S. District Court in Denver this afternoon, where they were advised of their rights and the charges pending against them. They are due back in court on July 25, 2013 at 10:00 a.m. for arraignment and a detention hearing.
On last Friday, July 19, 2013 HSI agents and Northern Colorado Task Force officers executed search warrants at seven locations, including residences and businesses in Fort Collins. During the course of executing those warrants, agents and officers seized: money from several bank accounts used by the defendants (amounts to be determined), $26,000 in cash, 75 pounds of Spice and the chemicals and dry products to make Spice, thousands of packaging units of Spice for later sale, and several firearms.
According to the indictment, from October 11, 2012 through approximately April 30, 2013, and continuing within the State of Colorado and elsewhere, the defendants did knowingly and intentionally conspire to manufacture, possess with the intent to distribute, and to distribute mixtures or substances containing detectable amounts of JWH-018 [1-pentyl-3-(1-naphthoyl)indole], also known as synthetic cannabinoid, a Schedule I controlled substance. The street name for this drug is Spice.
During the spring of 2013, the defendants engaged in knowingly and intentionally possessing with intent to manufacture and distribute mixtures or substances containing synthetic cannabinoid controlled substance.
The investigation revealed that Barnes would order JWH-018, which is a white powder, from China. He would have the powder delivered from China to New York City. From there, he’d have the illegal substance sent from New York to Fort Collins. Barnes also had a green leafy type substance sent to Fort Collins from San Antonio, Texas. In Fort Collins, Barnes, Le and the Pims would mix the substances together, wet it, let it dry, thus creating Spice. They would then package the product and take it to head shops, gas stations and other local stores to sell it. The cost of 1.5 gram packets would be $10, and the cost for 3 gram packets would be $20.
The product used by the defendants, JWH-018, is manufactured in China, with no Food and Drug Administration or other type of oversight. It can contain substances that are dangerous to an individuals’ health. Some purchase Spice because they cannot purchase marijuana. Both substances are dangerous to an individual’s health, which is why both JWH-018 and marijuana are both listed as Schedule I Controlled Substances, which are banned from use.
Most defendants face conspiracy to distribute a controlled substance. Others face possession of a controlled substance with intent to manufacture and distribute. All charges carry a penalty of not more than 20 years in federal prison, and a fine of up to $1,000,000, per count.
“Spice is a very dangerous substance that is being used by people as young as teenagers,” said U.S. Attorney John Walsh. “When a person uses Spice they have no actual idea what they are putting into their body – as a key part of the product is made in China without regulatory controls.”
“Illicit smuggling schemes involving synthetic marijuana pose a growing threat to public health and safety,” said Kumar Kibble, special agent in charge of HSI Denver. “Because these drugs are unregulated and untested, it is impossible to know what chemicals are being ingested, making them incredibly dangerous. With these latest arrests, HSI and our law enforcement partners have struck a huge blow to the synthetic drug industry.”
“This is another excellent example of federal and local law enforcement personnel working well together,” said Lt. Greg Yeager, Commander of the Northern Colorado Drug Task Force. “The dismantling of this drug trafficking organization will have a lasting impact on the presence of illegal drugs not only in the City of Fort Collins, but across the nation.”
Those charged with conspiracy to distribute a controlled substance face not more than 20 years in federal prison, and a fine of up to $1,000,000. Those charged with possession of a controlled substance with intent to manufacture or distribute also face not more than 20 years in federal prison, and up to a $1,000,000 fine, per count.
This investigation was conducted by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and the Northern Colorado Drug Task Force. The Northern Colorado Drug Task Force is made up of the Fort Collins Police Department, the Loveland Police Department and Colorado Adult Parole.
This case was prosecuted by Assistant U.S. Attorney Jeremy Sibert.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
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Lake County Residents Charged with Conspiracy and Use of A Minor in A Large-Scale Marijuana OperationRead the Press Release
SAN FRANCISCO – Following a months-long federal investigation, Ryan Balletto and Patrick Pearmain were charged today with conspiracy to manufacture and distribute over 1,000 plants of marijuana and using a minor in a drug operation, announced United States Attorney Melinda Haag.
Balletto and Pearmain, of Lake County, are charged in a criminal complaint signed by Magistrate Judge Nandor J. Vadas and unsealed today. In addition to the conspiracy and use of a minor charges, Balletto is also charged in the complaint with possession of a firearm in furtherance of a drug trafficking crime. The case arose from an investigation by the Lake County Sheriff’s Office and the ICE Homeland Security Investigations, Contraband Smuggling Group, which led to the discovery of a 1,300 plant marijuana cultivation operation and a host of firearms in Lake County.
The complaint alleges that Balletto and Pearmain kept a fifteen year-old runaway for weeks at an extensive marijuana grow site on land owned by Balletto in Lake County, and that they used her to process marijuana plants. According to the complaint, Balletto and Pearmain allegedly subjected the minor victim to sexual abuse during that time.
Agents and officers allegedly discovered a cache of weapons at the grow site, most of which were loaded, including assault weapons, such as AR-15 style rifles with night vision scopes, and pistols. Stored with the rifles, officers allegedly found seven fully loaded 30-round .223 caliber magazines, four fully loaded 20-round .223 caliber magazines, and a large cache of assorted ammunition. With the weapons, officers allegedly found ballistic face masks, a helmet, a flak jacket, an armored plate carrier, night vision devices, and a gas mask. A search of Balletto’s residence allegedly uncovered even more weapons, including multiple sniper rifles, additional assault rifles, shotguns, pistols, and ammunition.
The penalties Balletto and Pearmain face for the drug conspiracy and use of a minor in a drug operation charges are a maximum of life in prison, with a mandatory minimum ten-year term. In addition, the possession of a firearm in furtherance of a drug trafficking crime carries a mandatory term of five years in prison, consecutive to any sentence imposed. Any sentence following conviction would be imposed by the court only after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentence, 18 U.S.C. § 3553(a).
“Some in our community believe that marijuana grow operations are run by compassionate caregivers interested only in supplying medicine to the sick. Unfortunately, this case illustrates what we in law enforcement see – marijuana grow operations that include heavily-armed, violent individuals, motivated by profit, carrying out abuses of vulnerable victims.” U.S. Attorney Haag said. “In light of the details alleged in the complaint, we fear additional victims may have been subjected to similar treatment by the defendants, and we urge anyone with information about other such victims to come forward. My office is dedicated to keeping the community safe, and we will continue to work with our local, state and federal law enforcement partners to help bring to justice those who victimize others, particularly those who are most vulnerable.”
"This is an investigation that was originated by Federal Investigators,” said Lake County District Attorney, Don Anderson. “The U.S. Attorney's office has the expertise and resources to assure the defendants are adequately punished for their crimes. We have been working with the U.S. Attorney's office in this matter and look forward to our continuing relationship with them"
"The criminal groups involved in growing and trafficking marijuana have repeatedly shown they have no qualms about using violence and intimidation against those who get in their way - in this case the alleged victim was only 15 years old," said Tatum King, Acting Special Agent in Charge, Homeland Security Investigations, San Francisco. "By pooling our resources, authorities and expertise, we've succeeded in dismantling a drug operation suspected of funneling significant quantities of marijuana into northern California and onto our streets. This case shows yet again why federal and state collaboration is crucial to combatting these kinds of public safety threats and ensuring that those involved are brought to justice."
The defendants made their initial appearance today in front of Judge Vadas. A detention hearing is set for both defendants on Wednesday, July 24, 2013, at 1:00 pm in Eureka, California.
Kevin Barry and Matthew McCarthy are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Erica Doerr. U.S. Attorney Haag and Homeland Security Investigations Special Agent in Charge Settles also commend the Lake County Sheriff’s Office and the Lake County District Attorney’s Office for their continuing cooperation and assistance in this investigation.
Please note, a complaint contains only allegations against an individual and, as with all defendants, the defendants in this case must be presumed innocent unless and until proven guilty.
(Balletto and Pearmain complaints)
Kansas City, Kan., Man Sentenced for Enticing A California Girl for SexRead the Press Release
KANSAS CITY, KAN. – A man from Kansas City, Kan., has been sentenced to10 years in federal prison for using the Internet to entice a 12-year-old girl in California to send him pictures of herself naked, U.S. Attorney Barry Grissom said today.
Robert Dobbertin, 40, Kansas City, Kan., pleaded guilty to one count of enticing a minor. In his plea, he admitted that in October 2008 a woman in Orange County, Calif., discovered that her 12-year-old daughter was involved in an on-line relationship with him.
The girl met Dobbertin through the Web site Teenspot.com. Dobbertin sent instant messages to the girl and talked sexually to her on the phone while engaged in masturbation. He asked for and received naked photographs of her. He asked her to perform sexual acts on herself. He sent her a video of himself masturbating and a digital photo of his penis.
When investigators served a search warrant at Dobbertin’s home in May 2009 they seized a computer containing child pornography and the records of two Yahoo! Messenger chats in which Dobbertin talked about his plans to travel to California to visit the girl and expressed a desire to have sex with her.
Grissom commended the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.
Justice Department Files Lawsuit Against the State of Florida for Unnecessarily Segregating Children with DisabilitiesRead the Press Release
The Justice Department announced today that it has filed a lawsuit against the state of Florida alleging the state is in violation of the Americans with Disabilities Act (ADA) in its administration of its service system for children with significant medical needs, resulting in nearly 200 children with disabilities being unnecessarily segregated in nursing facilities when they could be served in their family homes or other community-based settings. The lawsuit, filed in federal district court in Fort Lauderdale, Fla., further alleges that the state’s policies and practices place other children with significant medical needs in the community at serious risk of institutionalization in nursing facilities. The ADA and the Supreme Court’s decision in Olmstead v. L.C. require states to eliminate unnecessary segregation of persons with disabilities. The department’s complaint seeks declaratory and injunctive relief, as well as compensatory damages for affected children.
In September of last year, the department issued an extensive findings letter, notifying the state that it is in violation of the ADA. The letter found that the state’s failure to provide access to necessary community services and supports was leading to children with significant medical needs being unnecessarily institutionalized in, or being placed at serious risk of entering nursing facilities. The letter identified the numerous ways in which state policies and practices have limited the availability of access to medically necessary in-home services for children with significant medical needs. Additionally, the state’s screening and transition planning processes have been plagued with deficiencies. Some children have spent years in a nursing facility before receiving screening required under federal law to determine whether they actually need to be in a nursing facility.
As a result of the state’s actions and inaction, the state has forced some families to face the cruel choice of fearing for their child’s life at home or placing their child in a nursing facility. In one instance, the state cut one child’s in-home health care in half. Her family could not safely provide care themselves to make up for this reduction in services, and they felt they had no choice but to place her in a nursing home. Another child who entered a nursing facility as a young child spent almost six years in a facility before the state completed her federally mandated screening.
“Florida must ensure that children with significant medical needs are not isolated in nursing facilities, away from their families and communities,” said Eve Hill, Deputy Assistant Attorney General for the Civil Rights Division. “Children have a right to grow up with their families, among their friends and in their own communities. This is the promise of the ADA’s integration mandate as articulated by the Supreme Court in Olmstead. The violations the department has identified are serious, systemic and ongoing and require comprehensive relief for these children and their families.”
Since late 2012, the department has met with Florida officials on numerous occasions in an attempt to resolve the violations identified in the findings letter cooperatively. While the state has altered some policies that have contributed to the unnecessary institutionalization of children, ongoing violations remain. Nearly two hundred children remain in nursing facilities. Deficient transition planning processes, lengthy waiting lists for community-based services and a lack of sufficient community-based alternatives persist. The department has therefore determined that judicial action is necessary to ensure that the civil rights of Florida’s children are protected.
The ADA prohibits discrimination on the basis of disability by public entities, including state and local governments. The ADA requires public entities to ensure that individuals with disabilities are provided services in the most integrated setting appropriate to their needs. The department’s Civil Rights Division enforces the ADA, which authorizes the Attorney General to investigate allegations of discrimination based upon disability and to conduct compliance reviews regarding the programs and services offered by public entities. Visit www.justice.gov/crt to learn more about the ADA and other laws enforced by the Civil Rights Division. For more information on the Civil Rights Division’s Olmstead Enforcement, please visit: www.ada.gov/olmstead/index.htm .
Justice Department Files Lawsuit Against the Puerto Rico Police Department for Race, Color and Religious DiscriminationRead the Press Release
The Department of Justice announced today the filing of a lawsuit against the Puerto Rico Police Department PRPD) alleging that the PRPD discriminated against Yolanda Carrasquillo on the basis of race, color and religion in violation of Title VII of the Civil Rights Act of 1964, as amended (Title VII). Title VII is a federal statute that prohibits employment discrimination on the basis of race, color, national origin, sex and religion.
The suit, filed in the U.S. District Court for the District of Puerto Rico, alleges that the PRPD discriminated against Carrasquillo by subjecting her to daily verbal harassment about her race, color and religion over a period of approximately three years beginning in 2007 and ending in 2010. According to the complaint,. Carrasquillo, a sworn police officer, was subjected to a hostile work environment because of the discriminatory actions of a civilian co-worker who regularly used racial and other offensive slurs directed towards Carrasquillo, and other black or dark-skinned employees, that disparaged her race, color and Christian faith. The United States has alleged that the co-worker’s discriminatory conduct persisted on a daily basis and over a number of years, often in the presence of Carrasquillo’s other co-workers and numerous supervisory police officers at the PRPD.
Despite numerous timely complaints about the harassment by Carrasquillo to her supervisors and other PRPD officials, the PRPD failed to take any meaningful steps to stop the harassment or discipline the harasser. The complaint alleges that the PRPD failed to follow its anti-harassment policy which provides for zero tolerance for harassment and specifically charges supervisors with preventing and immediately correcting acts of discrimination of which they become aware through either a report made to them or personal observation.
Through this lawsuit, the United States is seeking declaratory and injunctive relief requiring the PRPD to develop and implement policies that would prevent its employees from being subjected to harassment based upon race, color or religion as well as monetary damages for Carrasquillo as compensation for the PRPD’s discriminatory actions.
Carrasquillo originally filed a charge of race, color and religious discrimination with the Equal Employment Opportunity Commission (EEOC), which investigated the matter, determined that there was reasonable cause to believe that discrimination had occurred, and referred the matter to the Department of Justice.
“All workers deserve the freedom to go to work each day without fear of harassment because of their race, color or religion. Public employers should set an example for others by upholding the law and taking prompt and effective action to stop discriminatory harassment,” said Jocelyn Samuels, Principal Deputy Assistant Attorney General for the Civil Rights Division. “The Department of Justice will vigorously pursue such violations of Title VII.”
The continued enforcement of Title VII is a priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Department of Justice is available on its website at www.usdoj.gov/crt .
Joplin Business Owner Who Sold K2 Pleads Guilty to Mail Fraud, Money LaunderingRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of a Joplin, Mo., business pleaded guilty in federal court today to his role in a mail fraud conspiracy and to money laundering related to the sale of K2, the slang term for synthetic cannabinoid products.
Timmy J. Ridgway, 51, of Weir, Kan., waived his right to a federal grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to the charges contained in a federal information.
According to today’s plea agreement, Ridgway and others distributed synthetic cannabinoids at his business, The Looking Glass, 1860 W. 20th St., Joplin. K2 is a mixture of plant material that has been sprayed or mixed with a synthetic chemical compound similar to THC (tetrahydrocannabinol), the psychoactive ingredient in marijuana. K2 products are often labeled as “incense,” but in reality are intended for human consumption as a drug.
On March 4, 2013, law enforcement officers executed a search warrant at The Looking Glass and seized approximately 615 packages of “Bizarro,” 268 packages of “Orgazmo,”and $7,575 in cash. The same day, approximately $123,512 was seized from two bank accounts.
The labels on these packages of synthetic cannabinoids stated that the contents were “incense” or “potpourri” and “not for human consumption.” However, Ridgway admitted that he distributed K2, which contained a controlled substance analogue, for human consumption.
K2 was delivered to The Looking Glass via United Parcel Service (UPS) and FedEx from distributors and manufacturers in Ohio and California on at least 80 occasions between Dec. 29, 2011, and March 4, 2013. Invoices seized from The Looking Glass recorded the delivery of and payment for 93,931.5 grams of synthetic cannabinoids.
Ridgway admitted that he realized substantial profits from the distribution of synthetic cannabinoids. Between Nov. 8, 2012, and Feb. 5, 2013, he deposited a total of approximately $285,949 in cash proceeds from the sale of synthetic cannabinoids into his bank account.
Under the terms of today’s plea agreement, Ridgway must forfeit to the government a money judgment of $285,949, which represents the proceeds of the mail fraud conspiracy, as well as his business property in Joplin, a residential property in Pittsburg, Kan., and all of the funds that were seized from his business and bank accounts on March 4, 2013.
Under federal statutes, Ridgway is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $750,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Kansas Bureau of Investigation, the Missouri State Highway Patrol, the Jasper County Drug Task Force and the Joplin, Mo., Police Department.Home Health Agency Owner Pleads Guilty <br /> for Role in $13.8 Million Medicare Fraud SchemeRead the Press Release
Detroit-area resident Javed Rehman pleaded guilty today for his role in a $13.8 million Medicare fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the Chicago Regional Office for the U.S. Department of Health and Human Service’s Office of Inspector General (HHS-OIG).Rehman, 50, of Farmington Hills, Mich., pleaded guilty before U.S. District Judge Gerald E. Rosen in the Eastern District of Michigan to one count of conspiracy to commit health care fraud. At sentencing, scheduled for Nov. 7, 2013, Rehman faces a maximum penalty of 10 years in prison.
According to information contained in plea documents, in or around May 2009, Rehman purchased Quantum Home Care Inc. with co-conspirators Tausif Rahman and Muhammad Ahmad. Rehman paid kickbacks to recruiters to obtain Medicare beneficiary information used to bill Medicare for home health services – including physical therapy and skilled nursing services – that were never rendered. Rehman was the administrator of Quantum and was responsible for the submission of false and fraudulent claims to Medicare based on falsified files created by the co-conspirators.Medicare paid approximately $1.7 million to Quantum for physical therapy and skilled nursing services that Quantum purported to render between approximately June 2009 and September 2011. According to court documents, between 2008 and 2009, Rehman’s co-conspirators acquired control of three other home health care companies. The four companies, including Quantum, received approximately $13.8 million from Medicare in the course of the conspiracy.
Rahman pleaded guilty on Jan. 5, 2012, to one count of conspiracy to commit health care fraud and one count of money laundering and is scheduled for sentencing on Oct. 30, 2013. Ahmad pleaded guilty on Aug. 28, 2012, to one count of conspiracy to commit health care fraud and is scheduled for sentencing on Oct. 29, 2013.
This case was investigated by the FBI, HHS-OIG, and IRS Criminal Investigation and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. It is being prosecuted by Assistant Chief Catherine K. Dick of the Criminal Division’s Fraud Section.Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
HPH Hospice to Pay $1 Million to Resolve False Claims Act AllegationsRead the Press Release
TAMPA – The United States Attorney’s Office for the Middle District of Florida announced today that Hernando-Pasco Hospice, Inc., d/b/a HPH Hospice, has agreed to pay $1 million to resolve allegations that it violated the False Claims Act by submitting false claims for hospice services to the Medicare and Medicaid programs. HPH Hospice is a Florida not-for-profit corporation that provides hospice services in various locations throughout Hernando, Pasco, and Citrus counties in Florida.
The Medicare hospice benefit is available for patients who have a life expectancy of six months or less if their disease runs its normal course. Patients admitted to a hospice stop receiving care to cure their illnesses and instead receive medical care focussed on providing them with relief from the symptoms, pain, and stress of a terminal illness. Medicare reimburses for different levels of hospice care.
Today’s settlement resolves allegations that between January 1, 2005, and December 31, 2010, HPH Hospice submitted false Medicare and Medicaid claims for patients who did not need end of life care. The government alleged that HPH Hospice caused staff to admit ineligible patients in order to meet targets imposed by management, adopted procedures to delay and discourage staff from discharging patients who were not appropriate for hospice services, instructed staff to make false or misleading statements in patients’ medical records to make them appear eligible when they were not, and failed to implement an adequate compliance program that might have corrected these problems.
The settlement also resolves allegations that HPH Hospice billed the government at higher reimbursement rates than it was entitled to receive, and provided illegal kickbacks when it provided free services to skilled nursing facilities in exchange for patient referrals.
“The hospice industry provides medical care to our most vulnerable citizens. This settlement should send a message to providers that misconduct of this kind will not be tolerated,” stated A. Lee Bentley, III, Acting United States Attorney for the Middle District of Florida.
As part of the settlement, HPH Hospice has agreed to enter into a Corporate Integrity Agreement with the Inspector General of the Department of Health and Human Services that provides for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to the settlement.
The allegations settled today arose from a lawsuit filed by two former HPH Hospice employees, Heather Numbers and Greg Davis, under the qui tam or whistleblower provisions of the False Claims Act. Under the Act, private citizens can bring suit on behalf of the United States for false claims and share in any recovery. The whistleblowers in this case will collectively receive $250,000.
This matter was handled by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Middle District of Florida, the Office of the Inspector General for the Department of Health and Human Services, and the Florida Attorney General’s Office, Medicaid Fraud Control Unit.
The lawsuit is captioned United States and State of Florida ex rel. Numbers and Davis v. Hernando-Pasco Hospice, Inc., et al., No. 10-cv-912 (M.D. Fla.). The claims settled by this agreement are allegations only; there has been no determination of liability.
Grants Pass Sex Offender Sentenced to 188 Months in Federal Prison for Possessing FirearmsRead the Press Release
MEDFORD, Ore. — U.S. District Judge Owen M. Panner today sentenced Norman Bruce Spencer, 59, of Grants Pass, Oregon to 188 months in federal prison for felon in possession of a firearm, followed by five years of supervised release.
In September 2010, the Josephine County Sheriff’s Office responded to a complaint that Spencer, an employee of the Whitehorse Country Store in Grants Pass, had sexually molested an 8-year old girl. The responding deputy determined that Spencer had multiple aliases and several felony convictions, including three prior convictions for child molestation, and that he had not registered as a sex offender in at least five years. Spencer was eventually arrested for sexual abuse of a minor and for failure to register as a sex offender. During the investigation, the deputies also discovered that Spencer possessed a Smith and Wesson .44 caliber revolver and a Norinco 12- gauge shotgun, which defendant kept at the store. An ATF agent traced the revolver and shotgun back to their original owners, who indicated they had sold the firearms to Spencer. He was eventually charged and convicted of sex abuse I in Josephine County Circuit Court and was sentenced to life in prison.
In imposing the federal sentence, Judge Panner found that Spencer was an armed career criminal. Under the federal Armed Career Criminal Act, any person who possesses a firearm or ammunition faces a 15-year mandatory minimum prison sentence if the person has three prior convictions for violent felonies or drug trafficking offenses. Spencer has previous felony convictions for attempted injury to a child (Idaho 2001); robbery in the second degree (California 2000); lewd acts upon a child under 14-years old (California 1993); aggravated assault in the third degree (Florida 1991), lewd acts upon a child under 14-years old (California 1986), and forgery (California 1982). In addition, Spencer was also convicted in Josephine County Circuit Court of three counts of felony sex abuse I of a minor, and was sentenced to life without parole. His federal sentence will run concurrent with the state sentence.
This case was investigated by the Josephine County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms. The prosecution was handled by Assistant U.S. Attorney Douglas W. Fong.
Girl's Former Tennis Coach Pleads Guilty to Solicting Her for Child PornographyRead the Press Release
KANSAS CITY, KAN. – A Missouri man who coached youth tennis has pleaded guilty to soliciting a minor girl he coached to give him photos of herself naked, U.S. Attorney Barry Grissom said today.
Rex Haultain, 56, Parkville, Mo., pleaded guilty to one count of soliciting child pornography. In his plea, he admitted that in 2009 he told a minor girl he was coaching that she sexually aroused him. While traveling to a tournament in the summer of 2010 he showed her a picture of his penis on his cell phone. In the fall of 2010 he began asking her to send him naked pictures of herself. He also sent her text messages stating that he was sexually aroused by her.
Sentencing is set for Oct. 28. Both parties have agreed to recommend to the judge a sentence of not less than 60 months and not more than 78 months in federal prison. Grissom commended the Overland Park Police Department, the FBI and Assistant U.S. Attorney Scott Rask for their work on the case.
Gallatin Man Pleads Guilty to Passport FraudRead the Press Release
NASHVILLE, Tenn.- July 22, 2013- Jose Camarena, 37, of Gallatin, Tennessee, pleaded guilty on July 19, 2013, to charges arising from fraudulent attempts to obtain a United States passport, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.
Camarena pleaded guilty to two counts of making a false statement in an application for a United States passport and two counts of falsely representing that he was a United States citizen. Camarena admitted during the plea hearing that he is not a citizen of the United States and that, in 2008, and again in 2012, he applied for a United States passport while falsely representing that he was a U.S. citizen. Camarena also acknowledged that he submitted both passport applications under a false name and admitted providing false birth certificates and a Social Security card that he had obtained unlawfully in support of these applications.
After accepting Camarena’s plea, U.S. District Judge Aleta A. Trauger scheduled a sentencing hearing for September 27, 2013. Camarena could be sentenced to up to ten years in prison in connection with the false statement counts and to up to three years in prison in connection with the false representation of citizenship counts.
The case was investigated by the United States Department of State - Diplomatic Security Service, with assistance from the Gallatin Police Department and the United States Department of Homeland Security- Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney William F. Abely.Former Stamford Resident Sentenced to More Than Five Years in Federal Prison for Distributing CocaineRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that FRANK N. POTOLICCHIO, 63, of Monroe, formerly of Stamford, was sentenced on Friday, July 19, by United States District Judge Janet C. Hall in New Haven to 66 months of imprisonment, followed by four years of supervised release, for distributing cocaine. Judge Hall also ordered POTOLICCHIO to forfeit $60,000.
According to court documents and statements made in court, POTOLICCHIO was the leader of a Stamford-based drug trafficking ring. The investigation, which included the use of court-authorized wiretaps and physical surveillance, revealed that POTOLICCHIO and his co-conspirators acquired cocaine from Florida and sold it in smaller quantities to customers in Fairfield County.
On April 28, 2011, a search of POTOLICCHIO’s Avery Street residence revealed more than 200 grams of cocaine, narcotics packaging material, a 9mm handgun and approximately $7,158 in cash. An examination of POTOLICCHIO’s computer also revealed records of his cocaine sales and profits.
On April 1, 2013, POTOLICCHIO pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine.
This matter is being investigated by the FBI Fairfield County Organized Crime Task Force and the Stamford Police Department. The Task Force is composed of members of the FBI, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police.
The case is being prosecuted by Assistant United States Attorney Hal Chen.
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(203) 821-3722 [email protected]Former Owner of Two Florida Airline Fuel Supply Companies <br /> Charged for Role in Scheme to Defraud Illinois-Based<br /> Ryan International AirlinesRead the Press Release
A former owner and operator of two Florida-based airline fuel supply service companies made his initial appearance today in the U.S. District Court for the Southern District of Florida in West Palm Beach on charges of participating in a scheme to defraud Illinois-based Ryan International Airlines, the Department of Justice announced.
Sean E. Wagner was arrested on July 19, 2013, in Weston, Fla., on a one-count criminal complaint to commit wire fraud and honest services fraud relating to a scheme to defraud Ryan, a charter airline company based in Rockford, Ill. At today’s hearing, the department said that Wagner was arrested after there were indications that he was a flight risk.The criminal complaint alleges that Wagner participated in a conspiracy to defraud Ryan by making kickback payments to Wayne Kepple, the former vice president of ground operations for Ryan in charge of contracting with providers of goods and services on behalf of the company. In exchange, Kepple awarded business to Wagner’s fuel supply service companies. According to the criminal complaint, from at least as early as December 2005 through at least August 2009, Wagner, his companies, and others made kickback payments totaling more than $200,000, in the form of checks, wire transfers, gift cards and cash, to Kepple while working at Ryan.
Ryan provided air passenger and cargo services for corporations, private individuals, and the U.S. government, including the U.S. Department of Defense, the U.S. Department of Homeland Security and the U.S. Marshals Service.
“The Antitrust Division will take enforcement action against those who subvert the competitive process by trading contracts for kickbacks, especially where the U.S. government is being victimized,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The Antitrust Division will hold accountable those who seek to defraud the government and U.S. taxpayers.”Wagner is charged with one count of conspiracy to commit wire fraud and honest services fraud, which carries a maximum sentence of 20 years in prison and a $250,000 criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either amount is greater than the statutory maximum fine.
As a result of this ongoing investigation, four individuals have pleaded guilty to date. Three of the individuals have been ordered to serve sentences ranging from 16 to 24 months in prison and to pay more than $220,000 in restitution. The fourth individual, Wayne Kepple, pleaded guilty and is awaiting sentencing.
This charge is the result of an investigation being conducted by the Antitrust Division’s National Criminal Enforcement Section and the U.S. Department of Defense’s Office of Inspector General, with assistance from the U.S. Attorney’s Office for the Southern District of Florida. Anyone with information concerning anticompetitive conduct in the airline charter services industry is urged to call the Antitrust Division’s National Criminal Enforcement Section at 202-307-6694 or visit www.justice.gov/atr/contact/newcase.htm.
Former High-Ranking Nassau County Housing Official Sentenced to Eighteen Months’ IncarcerationRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, Louis Abate, the former Fiscal Director for the Nassau County Office of Housing and Community Development, previously convicted of stealing over $120,000 in federal housing benefits intended for low-income Long Islanders in need of housing financial assistance, was sentenced to eighteen months in prison by United States District Judge Sandra J. Feuerstein. Judge Feuerstein also imposed restitution of $122,250.
The sentenced was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Cary Rubenstein, Special Agent-in-Charge, U.S. Department of Housing and Urban Development, Office of Inspector General.
“The defendant had the trust of his colleagues and the County and was charged with providing much needed housing for low income families. Instead, he abused that trust to enrich himself and cooked the books to hide his deception,” stated United States Attorney Lynch. “This sentence should deter likeminded public officials from abusing their authority by embezzling money entrusted in their care.” Ms. Lynch extended her grateful appreciation to the Department of Housing and Urban Development, Office of Inspector General, for its assistance.
Qualifying low income families are eligible to receive Section 8 Program rent subsidies under a federal program funded by the United States Department of Housing and Urban Development (HUD). The Nassau County Office of Housing and Community Development (NCOHCD) is the administrative entity responsible for implementing and monitoring the programs and grants funded by HUD in Nassau County, including Section 8 grants. Once a Section 8 applicant is accepted for assistance, NCOHCD, using Section 8 HUD funds, provides rent assistance through payments that are made directly to the recipient’s landlord. The Fiscal Director of NCOHCD is appointed by the Nassau County Executive.
Between May 2009 and August 2011, the defendant stole more than $120,000 in federal rental subsidies from a Section 8 program that he oversaw, which serviced individuals residing in Island Park, New York. In order to accomplish the theft, the defendant created a fictitious landlord with no associated tenant, and for more than two years diverted the Section 8 benefits for this supposed landlord to a bank account he personally controlled. Abate was successful in concealing his fraud from the NCOHCD by systematically altering various accounting records to remove any reference to the diverted funds. During this period, Abate illegally paid himself approximately $5,000 per month – more than three times the monthly amount of federal Section 8 subsidies received by any single participating landlord in the Island Park area during that time.
The government’s case is being prosecuted by Assistant United States Attorney Lara Treinis Gatz.
The Defendant
Name: LOUIS ABATE
Age: 49
Residence: North Massapequa, New YorkFormer Background Investigator for Federal Government Pleads Guilty to Making A False StatementRead the Press Release
WASHINGTON – Lindsay Branson III, 58, a former background investigator for the U.S. Office of Personnel Management (OPM), pled guilty today to a charge stemming from his falsification of work on background investigations of federal employees and contractors, announced U.S. Attorney Ronald C. Machen Jr. and Patrick E. McFarland, Inspector General for the Office of Personnel Management.
Branson, of Silver Spring, Md., pled guilty in the U.S. District Court for the District of Columbia to making a false statement. The Honorable Amy Berman Jackson scheduled sentencing for Oct. 10, 2013. The charge carries a statutory penalty of up to five years in prison and a fine of up to $250,000. As part of his plea agreement, Branson must pay $159,918 in restitution to the federal government.
According to a statement of offense submitted to the Court, Branson worked for Federal Investigative Services, a part of OPM that does federal background investigations.
Between September 2010 and November 2011, in multiple Reports of Investigations on background investigations, Branson represented that he had interviewed a source or reviewed a record regarding the subject of the background investigation. In fact, he had not conducted the interviews or obtained the records of interest. His reports were utilized and relied upon by the agencies requesting the background investigations to determine whether the subjects were suitable for positions having access to classified information, for positions impacting national security, or for receiving or retaining security clearances.
Branson’s false representations have required Federal Investigative Services to reopen and rework numerous background investigations that were assigned to him during the time period of his falsifications, at an estimated cost of at least $159,918 to the U.S. government.
Federal Investigative Services has a robust integrity assurance program which utilizes a variety of methods to ensure the accuracy of reported information. The falsification of investigative case work by the defendant was detected through the program.
This is one of numerous cases prosecuted by the U.S. Attorney’s Office for the District of Columbia in the last four years involving false representations by background investigators and record checkers working on federal background investigations. In addition to Branson, 16 other background investigators and two record checkers have been convicted of charges.
Federal Investigative Services, through its workforce of approximately 7,600, including 6,100 field investigators, is responsible for conducting background investigations for numerous federal agencies and their contractors, on individuals either employed by or seeking employment with those agencies or contractors. Federal Investigative Services conducted more than 2.1 million investigations during the 2012 fiscal year. More than 770,000 of these investigations involved applicants for access or continued access to classified information.
In performing background investigations, the investigators conduct interviews of individuals who have information about the person who is the subject of the review. In addition, the investigators seek out, obtain, and review documentary evidence, such as employment records, to verify and corroborate information provided by either the subject of the background investigation or by persons interviewed during the investigation. After conducting interviews and obtaining documentary evidence, the investigators prepare a Report of Investigation containing the results of the interviews and document reviews, and electronically submit the material to OPM in Washington, D.C. OPM then provides a copy of the investigative file to the requesting agency, which can use the information to determine an individual’s eligibility for employment or a security clearance.
In announcing the plea, U.S. Attorney Machen and Inspector General McFarland praised the efforts of Special Agent Christopher Sulhoff, OPM, Office of the Inspector General, and Philip Kroop and David Newcomer, OPM, Federal Investigative Services. They also acknowledged the work of Paralegal Specialist Nicole Wattelet and Legal Assistant Angela Lawrence, as well as Assistant U.S. Attorneys Ellen Chubin Epstein and David A. Last, who investigated and prosecuted this matter.
13-254Federal Jury Convicts Tempe Designer Drug Maker/distributor on Federal Controlled Substance Analogue Enforcement Act ViolationsRead the Press Release
PHOENIX – On July 19, 2013, Michael Rocky Lane, 51, of Cave Creek, Arizona, was found guilty of conspiracy to manufacture and distribute controlled substance analogues and possession with the intent to distribute controlled substance analogues by a federal jury in Phoenix. The case was tried before U.S. District Judge David G. Campbell from June 25, 2013 through July 19, 2013. Sentencing is set before Judge Campbell on October 21, 2013.
“The manufacture and distribution of designer drugs, which are often mislabeled as innocuous household items and contain chemicals similar to scheduled drugs, are a tremendous problem in our community and across the United States. Individuals who manufacture and distribute these mislabeled designer drugs are responsible for products that have been linked to overdoses, deaths, and hallucinations. My office stands ready to enforce the Analogue Enforcement Act and combat this growing problem,” said John S. Leonardo, U.S. Attorney, District of Arizona.
“Friday’s verdict serves notice to those who are contemplating entering this emerging area of the illegal drug industry,” said DEA Special Agent in Charge Doug Coleman. This DEA-led investigation and trial brought to light the fact that controlled substance analogues are highly addictive stimulants and no different than cocaine or methamphetamine. The criminals behind the importation, distribution and selling of these drugs have scant regard for human life in their reckless pursuit of illicit profits.”
The evidence at trial showed that, beginning in early 2011, Michael Rocky Lane worked with Nicholas Pascal Zizzo at Consortium Distribution in Phoenix, Arizona. Consortium Distribution manufactured a designer drug called “Eight Ballz Bath Salts,” which contained a powerful stimulant MDPV. In October of 2011, the Drug Enforcement Administration (DEA) made MDPV a Schedule I controlled substance, and subsequently Lane worked to find a replacement chemical to use in a new designer drug, which was re-labeled as “Eight Ballz Ultra Premium Glass Cleaner.” “Eight Ballz” was never intended as a legitimate glass cleaner or bath salt, but was designed specifically to intoxicate users.
In the fall of 2011, Lane started his own designer drug manufacturing company in Tempe called Dynamic Distribution. There, Lane manufactured and distributed other mislabeled designer drugs including “Amped Lady Bug Attractant Exuberance Powder,” “White Water Rapid Lady Bug Attractant Exuberance Powder,” and “Snowman Glass Cleaner.” These products were neither legitimate glass cleaners nor insect attractants. Instead, they were all powerful stimulants, including APVP, APBP, MPPP, and Pentedrone, each of which contained substances similar to controlled scheduled drugs. Lane made nearly $8000 a day from domestic internet sales of these products to individual customers alone.
On July 25, 2012, DEA executed hundreds of search warrants at Consortioum, Dynamic and other locations across the country as part of “Operation Log Jam,” a nationwide, coordinated investigation led by the Department of Justice and DEA to combat the growing epidemic of designer drug manufacturing and distribution here in the United States. Other conspirators prosecuted in this investigation and who are awaiting sentencing include, Nicholas Pascal Zizzo of Phoenix; Benjamin Joshua Lowenstein of Phoenix, Arizona; Vincent Collura of New Jersey; David Titus of Phoenix; Andrew Scott Freeman of Minnesota; Clinton Strunk of Mesa; Scott Stone of Minnesota; and Daniel Pollock of Escondido, California.
A conviction for conspiracy to manufacture and distribute a controlled substance analogue carries a maximum penalty of 20 years, a $1,000,000.00 fine or both.
The investigation in this case was conducted by the Drug Enforcement Administration and was assisted by the Arizona Department of Public Safety, the Phoenix Police Department, and the Buckeye Police Department. The prosecution was handled by D. J. Pashayan and Theresa Rassas, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-1419-PHX-DGC (LOA)
RELEASE NUMBER: 2013-056_LaneFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Doctor Sentenced in Health Care Fraud Obstruction CaseRead the Press Release
Dr. Mahmoud Yassin, 61, of Robinson, IL, was sentenced in federal district court in Benton for Obstructing a Criminal Health Care Fraud Investigator, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Dr. Yassin was sentenced to serve 3 years of probation, a fine of $10,000, a special assessment of $100, and ordered to pay restitution to BCBS of Illinois in the amount of $19,615.17. As a condition of probation, Dr. Yassin must also serve 30 days in prison.
The felony obstruction occurred on March 2, 2012, when a FBI agent, having served a subpoena for patient records on Dr. Yassin, was given a patient progress note that had been altered by the doctor to show an in-office examination previously claimed to an insurance carrier, but which had not taken place.
In a civil settlement with the United States Attorney’s Office regarding false claims to Medicare, Dr. Yassin paid double damages in the amount of $87,348.64. The restitution and civil false claims settlement were based on claims for in person office visits in which the patient either failed to show up for an appointment or only was spoken to by telephone.
The case was investigated by agents of the Federal Bureau of Investigation, the Department of Health and Human Services Office of Inspector General, the Drug Enforcement Administration, and the Illinois State Police Medicaid Fraud Control Bureau. The case is assigned to Assistant United States Attorney Michael J. Quinley.
District Man Pleads Guilty to Felony Sex Abuse Charge in Assault at Group Home-Defendant Overpowered Victim in His Own Bed -Read the Press Release
WASHINGTON – Chaqualo McNeil, 19, of Washington, D.C., has pled guilty to a felony charge stemming from a recent attempt to sexually abuse a fellow occupant of a group home, U.S. Attorney Ronald C. Machen Jr. announced today.
McNeil entered the plea to a charge of attempted first-degree sexual abuse on July 19, 2013, in the Superior Court of the District of Columbia. The Honorable John Ramsey Johnson scheduled sentencing for Sept. 20, 2013. McNeil faces a statutory maximum of 15 years in prison. He also must also register as a sex offender for the rest of his life.
According to the government’s evidence, on June 2, 2013, the victim, who is in his 20s, was residing in a group home in Northeast Washington with two other adult males, including the defendant. At about 5:30 a.m., while the group home staff was reportedly asleep downstairs, McNeil entered the victim’s bedroom, overpowered him in his bed, and sexually assaulted him.
In announcing the plea, U.S. Attorney Machen commended the work performed by those who investigated the case from the Metropolitan Police Department’s Sexual Assault Unit. He also acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist D’Yvonne Key and Assistant U.S. Attorney Mervin A. Bourne, Jr. who investigated and prosecuted the matter.
13-255Defendant Pleads Guilty to Sex Crime While Being Treated at LarnedRead the Press Release
WICHITA, KAN. – A Kansas man has pleaded guilty to an Internet sex crime that took place while he was in the Kansas Sexual Predator Treatment Program at Larned State Hospital
Mark D. Brull, 38, Larned State Hospital, pleaded guilty to one count of transferring obscene material to a child. In his plea, he admitted that while he resided at Larned State Hospital he became friends with co-defendant Ryan J. Dancosse, a resident of Wichita. Brull provided Dancosse with the passwords to Brull’s social networking profiles including Facebook, Twitter, Flickr and Youtube, as well as his email account. With Brull’s knowledge and agreement, Dancosse found and copied images of pornography and then uploaded the images to Brull’s accounts for others to see and discuss.
In April 2011, Brull and Dancosse began communicating with a 14–year-old boy living in Massachusetts. In April and May 2011 Brull communicated with the boy via email and telephone. Brull guided the boy to his social networking profiles on the Internet, where he knew Dancosse had uploaded pornography. The boy was able to view the images on his computer and then discuss them with Brull. The images included depictions of nude males performing sexual acts.
Sentencing is set for Oct. 4. Both parties have agreed to recommend to the judge a sentence of 10 years in federal prison.
Co-defendant Ryan J. Dancosse, 40, Wichita, Kan., pleaded guilty to one count of receiving child pornography. He is set for sentencing Oct. 2.
Grissom commended the Kansas Internet Crimes Against Children Task Force, the Wichita Police Department and the Sudbury, Mass., Police Department , U.S. Attorney Jason Hart and Attorney General Steve Karrer of Kansas Attorney General Derek Schmidt's office.
Collinsville Man Pleads Guilty to Production of Child PornographyRead the Press Release
A Collinsville man pled guilty on July 22, 2013, to Production of Child Pornography, in violation of Title 18, United States Code, Section 2251(a), the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Martin L. Evanick, a/k/a "Vlad," 31, Collinsville, IL, faces a term of imprisonment of not less than fifteen (15) years but not more than thirty (30) years, a fine up to $250,000, and a term of supervised release of five (5) years to life. Sentencing is scheduled for November 4, 2013, in East St. Louis, Illinois. Evanick has been in the custody of the United States Marshals Service since his arraignment on October 19, 2012.
The investigation began on April 21, 2012, when the victim’s mother contacted the Collinsville Police Department regarding a possible sexual assault on her 16 year old minor daughter by a 30 year old man, later identified as Defendant Martin L. Evanick. During interviews with authorities, the victim revealed that she had a sexual relationship with Evanick, and that Evanick had also taken nude pictures of her using his cellular telephone. During the investigation, Evanick’s cellular telephone was found to contain four photographs of the victim, taken when she was 17 years old, that constituted child pornography. In an interview with agents, Evanick admitted taking the sexually explicit photos of the victim.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Office and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources".
The case was investigated by the Collinsville, Illinois, Police Department and the Federal Bureau of Investigation's Metro East Cyber Crimes and Analysis Task Force. The case is assigned to Assistant United States Attorney Angela Scott.
Charenton Man Pleads Guilty to Larceny at the Chitimacha Tribal ReservationRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced that Kendrick T. Edmond, 21, of Charenton, La., pleaded guilty before U.S. District Magistrate Judge Patrick J. Hanna to larceny occurring at the Chitimacha Tribal Reservation.
According to evidence presented at the guilty plea, Edmond admitted to entering the Chitimacha Trading Post, which is within the Chitimacha Tribal Reservation, on March 31, 2013, and removing cancer donations from the register counter. The donations had been provided to defray the medical expenses of a member of the Sovereign Nation of the Chitimacha.Edmond faces up to one year in prison, one year of supervised release, restitution, and a $100,000 fine.
Jurisdiction in Indian Country is based upon the unique sovereign relationship between the federal government and Indian tribes. Congress has criminalized certain acts that take place in Indian Country. The U.S. Attorney’s Office prosecutes all felony and misdemeanor cases, arising in Indian Country, that are within the jurisdiction of this office. The U.S. Attorney’s Office prosecutes cases, arising in Indian Country, involving felonies where either the defendant or the victim is an Indian or both the defendant and the victim are Indian. The U.S. Attorney’s Office also prosecutes cases involving misdemeanors where the defendant is a non-Indian.
The Chitimacha Tribal Police Department conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy is prosecuting the case.
CNMI Senator Pleads Guilty to Federal ChargeRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that JUAN MANGLONA AYUYU, Senator for Rota in the Northern Marianas Commonwealth Legislature, pleaded guilty today to federal charges in the U.S. District Court on Saipan.
In a written plea agreement, AYUYU pleaded guilty to Count One of the indictment in Criminal Case Number 1:12-cr-00036-1 (Conspiracy to Violate the Endangered Species Act) and Count One of the indictment in Criminal Case Number 1:12-cr-00039 (Conspiracy to Obstruct an Official Proceeding). In the plea agreement and at the plea hearing, AYUYU admitted that in October 2010 he conspired with his legislative assistant, Ryan James Inos Manglona, to transport eight federally protected Mariana fruit bats, or Fanihi, from Rota to Saipan on board a Freedom Air flight. AYUYU also admitted that after the bats were discovered by the Transportation Security Administration (TSA), he conspired in November 2010 to obstruct the ensuing federal grand jury investigation by asking Ryan Manglona to lie to the grand jury about their involvement. (Ryan Manglona previously pleaded guilty to perjury before the grand jury and conspiracy to violate the Endangered Species and Lacey Acts.)
In AYUYU’s plea agreement, the parties agreed -- subject to the Court’s approval -- that AYUYU will receive a sentence of between thirty-three and forty-one months in prison. The United States also agreed to dismiss the remaining charges after AYUYU is sentenced. Chief Judge Ramona V. Manglona set AYUYU’s sentencing for November 8, 2013.The case was investigated by agents of the U.S. Fish and Wildlife Service and the CNMI Division of Fish & Wildlife, an agency under the Department of Lands and Natural Resources. The prosecution is being handled by Assistant U.S. Attorneys Garth R. Backe and Ross K. Naughton.
16 Arrested in Organized Crime Drug Enforcement Task Force OperationRead the Press Release
LAREDO, Texas – Multiple indictments have been partially unsealed following the arrest and appearances of several area residents for numerous drug and money laundering charges, United States Attorney Kenneth Magidson announced today. The enforcement actions took place in the Laredo, Houston and Dallas areas on Friday, July 19, 2013.
The seven indictments were returned earlier this year and partially unsealed today upon their appearances in federal court. The alleged members of this drug and money laundering organization are charged with various federal violations, including engaging in a conspiracy to possess with intent to distribute and possession with intent to distribute multi-kilograms quantities of marijuana, cocaine, heroin and methamphetamines as well as conspiracy to launder drug proceeds. The alleged illegal conduct occurred from approximately 2009 through 2011.
Those arrested include:
Juan Antonio Elizondo, 24, of Laredo
Ahmed Alejandro Plascencia, 33, of Laredo
Ernesto Jimenez, 26, of Laredo
Francisco Garza, 55, of Laredo
Christian Abundez, 23, of Laredo
Blanca Abundez, 28, of Laredo
Abraham Bruno Ortiz, 49, of Laredo
Adrian Torres, 22, of Laredo
Rene Sanchez, 46, of Laredo
Olegario Valdez, 42, of Rio Bravo
Marco Antonio Marchan, 49, of Dallas
Juan Artemio Trevino, 41, of Houston
Ilmar Sierra, 35, of Dallas
Gabriel Munoz Solis, 40, of DallasAll made their initial appearances this morning and have been ordered into custody pending a detention hearing which has been scheduled for July 25, 2013.
Two others - Rolando Ariel Reyes-Apac, 33, and Heriberto Soto, 44, are also charged but are currently in custody on unrelated charges. They are expected to make their initial appearance on the charges in the near future.
The indictments allege the drug trafficking organization operated out of the Laredo area. They allegedly engaged in a conspiracy to distribute bulk quantities of marijuana, heroin, methamphetamines and cocaine from the Laredo area to distribution venues such as Dallas and Houston. In conjunction with the drug conspiracy, according to the indictments, the organization was involved in a money laundering conspiracy wherein large sums of money were transported from points of drug distributions to Laredo and Mexico. The indictments remain sealed as to those charged but not as yet in custody.
In late 2012 and early 2013, seven others were arrested in relation to this investigation. Nancy Gutierrez, 28, Pedro Menchaca, 39, Ricardo Cruz, 22, Jimmy Eusebio Trujillo, 50, Artemio Lemos, 47, Rosendo Rodriguez, 52 and Gilberto Soto-Diaz, 38, all of Laredo, have since pleaded guilty and are pending sentencing.
The indictments are the culmination of a long term Organized Crime Drug Enforcement Task Force Investigation dubbed “Operation Ultimate D” spearheaded by the Drug Enforcement Administration and Internal Revenue Service - Criminal Investigation with the assistance of Border Patrol, U.S. Marshals Service, Dallas Police Department Narcotics Unit, Webb County District Attorney's Office Drug Prosecution Unit, Laredo Police Department Narcotics Unit and Webb County Sheriff's Office Crime Stoppers Unit. Assistant United States Attorney Mary Lou Castillo is prosecuting the case.
Defendants are presumed innocent unless and until convicted through due process of law.
20 July 2013
Former Treasurer for Steelworkers Local 635 Charged with Falsifying RecordsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced the filing of an Information in U.S. District Court in Scranton today charging Bernard C. Nolter, Jr., age 45, of Mt. Carmel, Pennsylvania, with falsification of financial records.
According to United States Attorney Peter J. Smith, Nolter was responsible for the financial records of Steelworkers Local 635 during 2010-11 when he falsified those records in order to conceal the fact that he had embezzled approximately $7,047 from the union.
The case was investigated by the U.S. Department of Labor. Prosecution is assigned to Assistant U.S. Attorney Lorna N. Graham.Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is one year imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
19 July 2013
Yankton Man Indicted in Methamphetamine ConspiracyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Yankton, South Dakota, man has been indicted by a federal grand jury for his participation in a methamphetamine distribution conspiracy.
Richard Allen Schaefer, age 42, was indicted by a federal grand jury on July 9, 2013, for conspiracy to distribute 500 grams or more of methamphetamine. He appeared before U.S. Magistrate Judge John E. Simko on July 17, 2013, and pled not guilty to the indictment.The charge carries a mandatory minimum penalty of 10 years and a maximum penalty of life in prison and/or a $10 million fine. The charge is merely an accusation and Schaefer is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Sioux Falls Police Department, the S.D. Division of Criminal Investigation, and the U.S. Drug Enforcement Administration. Assistant U.S. Attorney John E. Haak is prosecuting the case.
Schaefer was remanded to the custody of the U.S. Marshal. A trial date has not been set.William Fredrick Schroeder 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 8, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, WILLIAM FREDRICK SCHROEDER, a 31-year-old resident of Livingston, pled guilty to receipt of child pornography. Sentencing has been set for October 16, 2013. He is currently detained.
In an Offer of Proof filed by Special Assistant U.S. Attorney Ole Olson, the government stated it would have proved at trial the following:
On February 13, 2013, "S", a 13-year-old child in Helena, disclosed to her mother that she had engaged in sexual intercourse with SCHROEDER earlier that day.
Later on February 13, 2013, members of the Helena Police Department placed SCHROEDER under arrest and seized two cellular telephones from him.
Still later on February 13, 2013, when interviewed SCHROEDER admitted that he had engaged in sexual intercourse earlier that day with "S." SCHROEDER stated he believed "S" was 17-years-old.
SCHROEDER's girlfriend was also interviewed who stated she had previously advised SCHROEDER that "S" was only 13-years-old.
SCHROEDER faces possible penalties of a mandatory minimum of 5 years in prison and could be sentenced to 20 years, a $250,000 fine, and lifetime supervision.
The investigation was conducted by the Helena Police Department.
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Decarlo Knighten, 36, of LaPorte, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of being a felon in possession of a firearm. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Agency.Sentencing has been set for 10/17/2013 before Judge Jon E. DeGuilio. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Ian T Kideys, 49, of La Jolla, California, pled guilty before District Judge Robert L. Miller, Jr to the felony offense of wire fraud. Sentencing has been set for 10/21/2013 9:00 AM before Judge Robert L. Miller Jr. This charge was filed as a result of an investigation by Department of Housing and Urban Development.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Brian Purvines, 41, of Granger, Indiana, was sentenced by District Judge Jon E. DeGuilio to 57 months imprisonment and 20 years supervised release after pleading guilty to the felony offense of possession of child pornography.According to documents filed with this case, Purvines was detected based on his having files available for distribution via file sharing software known as “Frostwire.”Purvines possessed approximately 291 images of child pornography and 33 videos.The images and videos contained prepubescent children engaged in sexual activity with adults.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney John Maciejczyk.
Clifton Vortice, 33, of South Bend, Indiana, was sentenced by District Judge Robert L. Miller, Jr to 24 months imprisonment and 2 years supervised release after pleading guilty to the felony offense of being a convicted felon in possession of a firearm.According to documents filed in this case, Vortice has a 2006 marijuana possession conviction. In September 2011, he purchased and possessed a Desert Eagle 9 mm pistol.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Kevin Howell, 46, of Michigan City, Indiana, was sentenced by District Judge Robert L. Miller, Jr to 60 months imprisonment and 4 years supervised release, after pleading guilty to the felony offense of possessing with the intent to distribute a mixture or substance containing a detectable amount of cocaine base (“crack.”)According to documents filed in this case, in January 2013, Howell possessed 28 grams of a white rock like substance at his residence in LaPorte County, Indiana.This substance was later tested by the Indiana State Police Lab and found to be cocaine base.This case was the result of an investigation by the Drug Enforcement Agency.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Cedric Hill, 33, of South Bend, Indiana, was sentenced by District Judge Robert L. Miller to 70 months imprisonment and 2 years supervised release after pleading guilty to the felony offense of possessing a firearm in and affecting interstate or foreign commerce.Hill has a prior felony firearms conviction. According to documents filed in this case, in November 2012, South Bend Police Officers stopped Hill after he left the Water Works Car Wash in South Bend, Indiana. Hill had been involved in an altercation at the Car Wash. Officers found a handgun outside the Car Wash. Hill admitted to having dropped this handgun outside the Car Wash and that he had possession of the weapon.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Randell Hargrove, 27, of South Bend, Indiana, was sentenced by District Judge Jon E. DeGuilio to total of 63 months imprisonment, 3 years supervised release on each count (concurrent) for a total of 3 years supervised release after pleading guilty to the felony offense of distributing marijuana and possession of a firearm in furtherance of a drug trafficking crime.According to documents filed with this case, Hargrove distributed both hydroponic and non-hydroponic marijuana.Hydroponic marijuana is the growing of plants in an inert, sterile growing medium rather than soil. At the time of law enforcement’s search of a relevant location, firearms belonging to Hargrove were retrieved.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Monta Oliver, 36, of Gary, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of distribution of crack cocaine.Sentencing has been set for 9/25/13.This charge was filed as a result of an investigation by the Federal Bureau of Investigation and the Gary Police Department.This case is being prosecuted by Special Assistant United States Attorney Armando Salinas.
Regina Cabell, 36, of West Lafayette, Indiana, pled guilty before Senior District Judge Rudy Lozano to the felony offense of submitting a claim to Indiana Medicaid for service to an Indiana Medicaid recipient that she did not actually provide and failure to file a 2011 federal income tax return.Sentencing has been set for 10/25/13.This charge was filed as a result of an investigation by the Indiana Medicaid Fraud Control Unit.This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Terrence Benson, 23, of Hammond, Indiana, a defendant in the case US v Puntillo-Raggs et al., was sentenced on July 12, 2013 by Senior District Judge Rudy Lozano to 12 months of probation and restitution of $4,000.00 after pleading guilty to the felony offense of passing counterfeit obligations.According to documents filed by the government in this case, Benson passed the counterfeit currency in payment for “purchased” items from the victim store. He later returned many of the items “purchased” with the counterfeit currency in exchange for genuine cash or other things of value. This case was the result of an investigation by the United States Secret Service.This case was prosecuted by Assistant United States Attorney Randall Stewart.
Tyrone Reynolds, 34, an illegal alien living in Chicago, Illinois, and a defendant in the case US v Blades et al., was re-sentenced by Senior District Judge Rudy Lozano to 384 months imprisonment and 3 years of supervised release if not deported after being found guilty at trial of the felony offenses of kidnapping, conspiracy to distribute marijuana and use of a firearm during a crime of violence in relation to a narcotics offense.According to documents filed in this case, Reynolds and seven others robbed the victim, a self-admitted drug dealer, at his residence in Gary, Indiana.The group looted the victim’s residence, finding over $15,000 in cash.Believing there were more drugs and money they beat the victim and demanded that he cooperate.Eventually, the victim hatched a plan to escape by proposing to Reynolds that he could take the group to a cache of marijuana being stored in Chicago.Reynolds believed the victim and the group decided they would go to the location in Chicago.The victim was able to escape from the vehicle on route to the location and called law enforcement.This case was the result of an investigation by the Federal Bureau of Investigation and the Chicago Police Department.This case was prosecuted by Assistant United States Attorney David Nozick.
Jon Zondor, 71, of Hammond, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 120 months imprisonment and 10 years of supervised release after pleading guilty to the felony offense of possession of child pornography.Zondor was also ordered to pay $500 in restitution to each of two victims.According to documents filed by the government in this case, 9,433 images and 248 videos were found in Zondor’s possession, many of which depicted prepubescent children being caused to engage in sexually explicit conduct .Zondor was convicted of aggravated criminal sexual abuse in 1989. This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Jill Koster.
Dwayne Crawford, 40, of Merrillville, Indiana, was sentenced by Senior District Judge James Moody to 97 months imprisonment and 4 years of supervised release after pleading guilty to the felony offenses of conspiracy to possess with intent to distribute and distribute 100 kilograms or more of marijuana, possession with intent to distribute 500 grams or more of cocaine and engaging in a monetary transaction with criminally derived property of a value greater than $10,000.This case was the result of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Internal Revenue Service.This case was prosecuted by Assistant United States Attorney Jacqueline Jacobs.
Joshua Atwood, 29, of Crown Point, Indiana, was sentenced by Senior District Judge Rudy Lozano to 97 months imprisonment and 20 years of supervised release after pleading guilty to the felony offense of possession of child pornography involving visual depictions involving a minor who had not attained twelve years of age.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case was prosecuted by Assistant United States Attorney Jill Koster.
Montell Williams, 34, of Chicago, Illinois, was sentenced by Senior District Judge Rudy Lozano to 120 months imprisonment and 8 years of supervised release after pleading guilty to the felony offense of transporting an individual in interstate commerce with the intent that the individual engage in prostitution.According to documents filed by the government in this case, the Gary Police Department received information from an Illinois citizen who reported her daughter was being held against her will. The investigation subsequent to that initial lead established that Williams, acting as a pimp, was recruiting women into prostitution, advertising them on internet sites, transporting them across state lines and using force to ensure they continued to work for him. From 2010 to 2012, the victims resided with Williams in Gary, Indiana, and two different locations in Illinois. This case was the result of an investigation by the Federal Bureau of Investigation and the Gary Police Department.This case was prosecuted by Assistant United States Attorney Jill Koster.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS:
Francisco Garcia-Hernandez, 35, of Fort Wayne, Indiana, was sentenced by District Judge Theresa L. Springmann to 37 months imprisonment after pleading guilty to the felony offense of distributing and possessing with the intent to distribute a controlled substance, namely 500 grams or more of cocaine.According to documents filed in this case, undercover law enforcement was able to purchase cocaine from Garcia-Hernandez.Garcia-Hernandez was involved in numerous drug transactions of which the last involved transacting approximately 528 grams of cocaine pressed into a hard brick form.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Clara M Haught, 64, of Garrett, Indiana, was sentenced by District Judge Theresa L. Springmann to 3 years of probation, to include10 months of home detention, and $31,075.42 in restitution after pleading guilty to the felony offense of production/trafficking in counterfeit devices.According to documents filed in this case, Haught opened multiple credit cards in a friend’s name without their permission or consent.Haught gained knowledge of the information by claiming to help the individual with a local cable bill.This case was the result of an investigation by United States Postal Service.This case was prosecuted by Assistant United States Attorney Tina Nommay.
Waterbury Man Sentenced to 10 Years in Federal Prison for Illegally Possessing, Selling FirearmsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ROBERTO SANTIAGO, 28, of Waterbury, was sentenced today by United States District Judge Robert N. Chatigny in Hartford to 120 months of imprisonment, followed by three years of supervised release, for illegally possessing and selling firearms.
According to court documents and statements made in court, on August 2, 2011, SANTIAGO sold a semi-automatic handgun in exchange for $400 to an individual working with law enforcement. On August 9, 2011, SANTIAGO sold a semi-automatic rifle and 250 rounds of ammunition to an undercover officer for $1,500. Both of the firearms were manufactured outside of Connecticut.
Prior to August 2011, SANTIAGO had sustained six felony convictions. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm that has moved in interstate or foreign commerce.
On October 22, 2012, SANTIAGO pleaded guilty to one count of possession of a firearm by a previously convicted felon.
SANTIAGO has been detained in state custody since his August 31, 2011 arrest on several unrelated state charges. On November 1, 2011, he received an effective state sentence of four years--which he is currently serving--for five felony convictions and one misdemeanor conviction. The federal sentence imposed today will run concurrently to the remainder of SANTIAGO’s state sentence.
This matter was investigated by the Drug Enforcement Administration, with substantial assistance provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Marc H. Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]