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19 July 2013
Former Firefighter Sentenced to over 16 Years in Prison for Production and Possession of Child PornographyRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Anthony Maurice Cottle, age 24, of Owings Mills, Maryland, late yesterday to 195 months in prison followed by a lifetime of supervised release for sexual exploitation of a minor to produce child pornography and to possession of child pornography. Judge Hollander ordered that upon his release from prison, Cottle must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, in June and July 2012, Cottle, a former firefighter with the Baltimore County Fire Department, sexually abused two minor males to produce visual depictions of the abuse, including two videos. Cottle produced one video that depicts the genitalia of a minor male and Cottle performing sex acts on the boy. Cottle produced a second video depicting the genitalia of another minor male. More than 600 images of child pornography were recovered from Cottle’s computer and cell phone.
In addition to the videos produced by Cottle, images of several other child victims whom Cottle solicited to send him photos of their genitals, were found. Cottle admitted that on some occasions he used video chat to capture the image live, and on other occasions the minor would send a photograph by cell phone.
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 "resources" tab on the left of the page.
This investigation was part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the FBI, Baltimore County Police Department, Baltimore Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation and prosecution. U.S. Attorney Rosenstein also recognized the Baltimore County Fire Department for its assistance in this case. Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao, who prosecuted the case.
Former Elementary School Principal in Texas Arrested for Attempting to Entice A Minor to Engage in Unlawful Sexual ActivityRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), and Jeffrey S. Katz, Interim Chief, Boynton Beach Police Department (BBPD), announce the arrest of Stephen Anthony Paulsen, 54, of Fort Worth, Texas, for attempting to entice a minor to engage in an illegal sexual activity, in violation of Title 18, United States Code, Section 2422(b). Paulsen had his initial appearance this morning before U.S. Magistrate Judge James M. Hopkins. The United States requested that Paulsen be detained and a Pretrial Detention hearing has been set for Tuesday, July 23, 2013, at 10:00 a.m. If convicted, the defendant faces a ten year mandatory term of imprisonment and a maximum term of life.
According to the criminal complaint, Paulsen sent numerous sexually explicit messages via a web-based social media application to an undercover officer who posed as a 15 year old boy. Paulsen then attempted to meet the minor to engage in illegal sexual activity when Paulsen believed the boy was home alone, at which point he was arrested. At the time of his arrest, Paulsen was in South Florida visiting family.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of ICE-HSI and BBPD. This case was adopted from the state in cooperation with Dave Aronberg, State Attorney, Palm Beach County, and the South Florida Internet Crimes Against Children (ICAC) Task Force. The case is being prosecuted by Assistant U.S. Attorney Adam McMichael.
A criminal complaint is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Contract Employee with Postal Service indicted fro drug conspiracy and possessing stolen mailRead the Press Release
Anchorage, Alaska-Acting U.S. Attorney Kevin R. Feldis announced today that a Wasilla woman was indicted by a federal grand jury in Anchorage, Alaska, on drug charges as well as a charge of possession of stolen mail.
Brenda Sue Cox, 52, of Wasilla, Alaska, is the sole defendant named in two separate indictments. The first charges her with conspiracy to distribute large amounts of methamphetamine and heroin as well as related drug crimes. The second indictment charges Cox, a former contract employee with the United States Postal Service, with possession of stolen mail. Both indictments stem from law enforcement actions in October 2012. The indictment alleges that Cox was found to be in possession of heroin and methamphetamine as well as multiple pieces of stolen mail.
Assistant U.S. Attorney Stephanie Courter, who presented the case to the grand jury, indicated that Cox faces a ten-year mandatory minimum sentence on the drug charges, while the law provides for a maximum total sentence of up to five years in prison and a $250,000 fine for possessing the stolen mail. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.
The United States Postal Inspection Service and the Alaska State Troopers conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Former Burlington Man Sentenced on Federal Marijuana ConspiracyRead the Press Release
DAVENPORT, IA – On July 18, 2013, Derrick Dean Taylor, age 28, formerly of Burlington, Iowa, was sentenced by United States District Judge John A. Jarvey to six months imprisonment for conspiracy to distribute marijuana, announced United States Attorney Nicholas A. Klinefeldt. Judge Jarvey also ordered Taylor to serve three years of supervised release following the imprisonment and to pay $100 towards the Crime Victims Fund.
Beginning in approximately August 2008 and continuing until about August 2011, Taylor conspired with other persons to distribute marijuana in the Burlington, Iowa area. As part of the investigation, on August 5, 2011, law enforcement officers conducted a search of Taylor’s Burlington residence and seized 23 pounds of marijuana, a digital scale, packaging material, drug paraphernalia, and a significant amount of U.S. currency.
This case was investigated by the Southeast Iowa Narcotics Task Force; the United States Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Iowa Department of Public Safety - Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Former Arkansas State Trooper Arrested on Drug ChargeRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; Randall C. Coleman, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation; and Colonel Stan Witt, Director of the Arkansas State Police announced that Sedrick Reed, age 43, and Lamont M. Johnson, age 45, both of Little Rock were arrested and charged by federal Complaint yesterday with possession with intent to distribute and distribution of cocaine. Both have an initial appearance scheduled for 2 p.m. today before United States Magistrate Judge J. Thomas Ray.
The Complaint alleges that Reed, who at the time of the investigation was an Arkansas State Police (ASP) Lieutenant with full oversight of the Troop A evidence vault, broke the evidence seal on a box of cocaine held in evidence and removed cocaine more than once for distribution. The investigation revealed that he was selling the cocaine to Johnson. The allegations in support of the criminal complaint are set forth in the complaint affidavit, attached.
"It's a very sad day when a law enforcement officer violates the public trust," stated Thyer. "Thankfully, because of the integrity and leadership at the Arkansas State Police, information regarding Lt. Reed's illegal actions was turned over to the Federal Bureau of Investigation to ferret out the dishonesty by one of their own. The ASP continued to provide cooperation throughout this investigation which has led to the charges Mr. Reed faces today."
"Yesterday's arrest was a result of the collaborative efforts of the ArkTrust Public Corruption Task Force, stated FBI Special Agent in Charge Randall C. Coleman. "The allegations against Lieutenant Reed are among the most serious and important that we investigate. When we receive credible allegations of law enforcement corruption, we will follow the facts where they lead us, as we want Arkansans to continue to trust in the vast majority of officers who respect their oath and who are committed to public service."
Colonel Witt stated, "We have worked alongside the FBI since the case was opened and regardless of where an investigation of this type may lead, even if it's among our own ranks, the State Police will always be accountable to the citizens and the laws they expect us to enforce."
If convicted, both Reed and Johnson face not more than 20 years in prison, a $1,000,000 fine, or both with not less than three years supervised release.
The investigation was conducted by the ArkTrust Public Corruption Task Force led by the Federal Bureau of Investigation and the Little Rock Police Department with full cooperation from the Arkansas State Police. Assistant United States Attorneys Christopher Givens and Julie Peters are prosecuting this case for the United States.
The charges set forth in a Complaint are merely allegations. A federal Grand Jury will decide whether to indict on these charges. The defendant is presumed innocent until proven guilty.
Florida Woman Pleads Guilty to Role in Fraudulent Home Inspection BusinessRead the Press Release
Tampa, Florida - Acting United States Attorney A. Lee Bentley, III announces that Tammy Roaderick (39, Largo) pleaded guilty yesterday to conspiracy to commit wire fraud. Roaderick faces a maximum penalty of five years in federal prison. Her sentencing hearing is scheduled for November 7, 2013.
Dean Counce pleaded guilty to conspiracy to commit wire fraud on September 14, 2012. On February 20, 2013, he was sentenced to 97 months in federal prison.
According to the plea agreement, Roaderick and her co-conspirator, Dean Counce, owned a company called American Mortgage Field Services, LLC (AMFS). AMFS performed preservation and inspection work for homes in various phases of foreclosure, including homes that were owned by government entities such as Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA). The government entities paid servicing lenders, such as Bank of America, to protect and maintain their properties. Beginning in or around 2007, some of these servicing lenders retained AMFS to conduct periodic inspections of government-owned or insured properties to prevent unnecessary deterioration that may have resulted from neglect or vandalism.
The servicing lenders would send Counce, Roaderick, and AMFS a list of properties each month that required inspection. These inspections required AMFS employees to visit a property, fill out an inspection report, and take photographs. Counce, Roaderick, and others then compiled these inspection reports and transmitted them electronically to the requesting party, such as Bank of America. The servicing lenders then paid AMFS a fee per inspection.
As the real estate market declined in Florida and throughout the country, AMFS began to receive more and more requests for inspections on properties in foreclosure. Most or all of the mortgages on the properties were owned or insured by Fannie Mae, Freddie Mac or FHA. The requests for inspections far exceeded AMFS’s capacity to complete them. As a result, Counce, Roaderick, and other AMFS employees began fabricating inspection reports.
For example, Counce and Roaderick would direct that each new property be inspected the first time and that inspectors take numerous photographs, far more than were required for a single month’s inspection report. AMFS employed individuals, many of whom were high school students or recent high school graduates, to use previous months’ photographs to fabricate subsequent inspection reports on properties. Counce and Roaderick also instructed AMFS employees to fabricate inspection reports by using publicly available websites, such as property appraiser sites, to obtain data about properties that were not inspected. AMFS employees acting under Counce and Roaderick's direction submitted the falsified inspection reports to AMFS’s clients along with false claims for payments. Employees who produced large numbers of false inspection reports were often rewarded with cash bonuses.
In total, between 2007 and 2009, Bank of America remitted $4,490,398.87 to Mid-Florida Home Securing (later known as AMFS) and, between 2009 and 2012, Bank of America paid AMFS $19,044,973.06 for inspections, a large percentage of which were never actually performed. Based on employee reports of fabrication rates, the government estimates the loss in this case to be approximately $12,774,102.
This case was investigated by the Federal Housing Finance Agency, Office of the Inspector General, the Department of Housing and Urban Development, Office of the Inspector General, and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Mandy Riedel.
Florida Man Indicted for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a West Palm Beach, Florida, man has been indicted by a federal grand jury for Failure to Pay Child Support.
Chadwick T. Chapman, age 26, was indicted by a federal grand jury on June 4, 2013, for failing to pay over $12,898 in past due child support. He appeared before U.S. Magistrate Judge William D. Gerdes on July 16, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is two years' imprisonment; a $250,000 fine, one year supervised release, one additional year upon revocation, a $100 assessment fee to the Federal Crime Victim’s Fund, and child support restitution amount owing at the time of sentencing.
The charge is merely an accusation and Chapman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case.
Chapman was released on bond pending trial. A trial date has been set for September 24, 2013.Florida Man Charged with Attempted Enticement of A Minor Using the Internet and Attempted Sexual Exploitation of A ChildRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bushnell, Florida, man has been indicted by a federal grand jury.
Seth Stone, age 24, was indicted on May 15, 2013, for the Attempted Enticement of a Minor Using the Internet and Attempted Sexual Exploitation of a Child.
Stone was arrested in Florida on June 3, 2013, and appeared before U.S. Magistrate Judge Mark A. Moreno in Pierre, South Dakota, on July 18, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum of 10 years up to a maximum of life imprisonment on the enticement of a minor charge, and a mandatory minimum of 15 years up to a maximum of 30 years imprisonment on the sexual exploitation charge. Both counts include a $250,000 fine and term of supervised release of 5 years up to life for each violation, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations, and Stone is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Stone was released to a 3rd party custodian with conditions pending trial. A trial date has not been set.Final Defendant Sentenced in Public Corruption Case at Sheppard Air Force BaseRead the Press Release
WICHITA FALLS, Texas — A former engineer at Sheppard Air Force Base (SAFB), Larry Thomas Ballard, 60, of Wichita Falls, Texas, was sentenced today by U.S. District Judge Reed C. O’Connor to 24 months in federal prison and ordered to pay $6,095 in restitution, following his guilty plea in October 2012 to one count of conspiracy to defraud the United States and conspiracy to unlawfully disclose sensitive source selection information. Judge O’Connor ordered that Ballard surrender to the Bureau of Prisons on August 22, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Ballard is the fourth and final defendant to be sentenced in connection with a public corruption case at SAFB that involved the unlawful disclosure of source selection information and payment of bribes in connection with government contracts at the base.
The Lead Supervisory Engineer at SAFB and the most culpable in the scheme, John Torrance Gilmore, III, 53, also of Wichita Falls, was sentenced in May 2013 to 60 months in federal prison. He pleaded guilty to one count of conspiring to defraud the U.S. and conspiring to unlawfully disclose sensitive source information.
Two government contractors, John Carmon Freeman and Miguel Angel Hughes, were sentenced to 18 months and eight months, respectively. Each pleaded guilty to one count of conspiring to defraud the U.S. and conspiring to unlawfully obtain sensitive source information.
In addition, Judge O’Connor ordered that Gilmore and Hughes pay $6,095 restitution to the Department of Defense.
Gilmore, as the Lead Civil Engineer in the Civil Engineering Squadron’s engineering department, supervised several engineers, including Ballard. The Squadron’s mission was to maintain SAFB facilities and provide civil engineering support to the base.
Hughes, 63, of Fort Worth, Texas, owned Hughes and Guzman Construction Services, LLC, (Hughes Building Services), a roofing contractor and subcontractor with offices in Fort Worth, Dallas and Balch Springs, Texas. Freeman, 50, of Vernon, Texas, owned Freeman Construction, a road-building and paving contractor, with offices in Wichita Falls and Vernon.
The four defendants conspired together to impair and obstruct the government’s ability to have a competitive and unbiased selection of contractors — depriving the government of its right to exclusive use and control over sensitive source selection information, to include contractor bid information, government pricing and cost estimates and contractor proposal information. The defendants conspired together to knowingly disclose and obtain sensitive source selection information related to specifications on several contracts, including those for roof and pothole repairs and the liquid oxygen maintenance facility.
According to plea documents filed in the case, the defendants conspired together and with others during the period from at least the mid 1990's through 2009, to defraud the 82nd Contracting Squadron and the Department of the Air Force by depriving the U.S. of the lawful right to exclusive use and control over sensitive source selection information, such as contractor bid information, government pricing and cost estimates, and contractor proposal information, on several contracts. They also conspired together and with others to disclose or obtain sensitive source selection information on several contracts.
Gilmore and Ballard provided sensitive source information to their friends, Freeman and Hughes, to give them a competitive advantage or financial benefit in connection with several government contracts. Over several years, Freeman and Hughes gave Gilmore and Ballard personal gifts and benefits in return for their preferential treatment in connection with several government contracts.
In the mid to late 1990's, Freeman paid large sums of cash to Gilmore. Gilmore supervised several government inspectors who inspected Freeman’s work and Freeman felt it would be good to keep Gilmore happy so that he would continue to treat Freeman favorably. On at least one occasion, Freeman gave $10,000 in cash to Gilmore, expecting Gilmore to accept and approve Freeman’s work on future government contracts, even if there were discrepancies and deficiencies in Freeman Construction’s contract work. In addition, to curry favor with Gilmore, Hughes paid Gilmore’s travel expenses and took him to several gun shows.
When Gilmore became aware of this criminal investigation, he told Freeman to lie about his cash payments to him. After initially lying about them to investigators, Freeman later admitted that he had paid cash bribes to Gilmore.
The investigation was conducted by the Defense Criminal Investigative Service and the Air Force Office of Special Investigations.
Fergus Falls Man Indicted for Stealing from ATMs in West-central Minnesota, North DakotaRead the Press Release
MINNEAPOLIS—Recently in federal court, a 31-year-old Fergus Falls man was indicted with stealing money from automated teller machines (“ATM”) in numerous locations in west-central Minnesota and in Wahpeton, North Dakota, between March 2005 and March 2012. On July 16, 2013, Christopher James Diestler was charged with one count of bank larceny. Diestler was arrested on July 17, 2013, and made his initial appearance yesterday in federal court.
The indictment alleges that from March 2005 through March 15, 2012, Diestler stole approximately $182,350 from Bremer Bank ATMs in Alexandria, Breckenridge, Detroit Lakes, Fergus Falls, and Morris in Minnesota, and in Wahpeton, North Dakota; a Wells Fargo ATM in Alexandria; and a U.S. Bank ATM in Fergus Falls. The thefts were committed while Diestler was carrying out his duties as an armored truck driver.
If convicted, Diestler faces a potential maximum penalty of ten years in prison. Any sentence will be determined by a federal district court judge. This case is the result of an investigation by the Minnesota Bureau of Criminal Apprehension, the Otter Tail County Sheriff’s Office, the Fergus Falls Police Department, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Lola Velazquez-Aguilu.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Federal Jury Finds Washington County Man Guilty of Illegal Financial TransactionsRead the Press Release
PITTSBURGH - After deliberating two hours, a federal jury of seven men and five women found Daniel Young guilty of four counts of conspiracy and structuring financial transactions, United States Attorney David J. Hickton announced today.
Daniel Young, 42, of Eighty-Four, Pa., was tried before United States District Judge David S. Cercone in Pittsburgh, Pa.
According to Assistant United States Attorney Brendan T. Conway, who prosecuted the case, the evidence presented at trial established that Young participated with two other individuals in a conspiracy in which they structured financial transactions with financial institutions and business to avoid the filing of Currency Transaction Reports. Currency Transactions Reports are required to be filed when financial institutions and business received in excess of $10,000 in cash.
The jury also concluded that one vehicle, two pieces of equipment, two real estate properties, and $234,859 was forfeitable to the United States.
Judge Cercone scheduled sentencing for Dec. 4, 2013, at 1 p.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the criminal history, if any, of the defendant.
The Internal Revenue Service-Criminal Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Young.
Federal Agent Arrested for Participating in A Cocaine and Marijuana ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Gregory K. Null, the Special Agent-in-Charge of the Department of Homeland Security, Office of the Inspector General, Northeast Region (“DHS-OIG”), and Terence S. Opiola, the Special Agent-in-Charge Northeast, Immigration and Customs Enforcement, Office of Professional Responsibility (“ICE-OPR”), announced today the arrest of Immigration Enforcement Agent KORDELL NESBITT for his participation in a conspiracy to distribute cocaine and marijuana. NESBITT was arrested last night and presented in Manhattan federal court before U.S. Magistrate Judge James L. Cott today. An alleged co-conspirator, SHERISSE THOMPSON, was arrested this morning in the Bronx, and was presented in Manhattan federal court before U.S. Magistrate Judge Gabriel W. Gorenstein. A second alleged co-conspirator, CHRISTOPHER SINCENO, was arrested today at his residence in Las Vegas, Nevada.
Manhattan U.S. Attorney Preet Bharara said: “Kordell Nesbitt had a duty to uphold the nation’s immigration laws. But as alleged, he also had a side job: coordinating the transport and sale of cocaine and marijuana with co-conspirators Christopher Sinceno and Sherisse Thompson. We will not tolerate abuses of trust by individuals who, tasked with preserving law and order, choose instead to engage in illicit activity.”
DHS-OIG Special Agent-in-Charge Gregory K. Null said: “The Office of Inspector General is committed to working with our law enforcement partners to identify and aggressively investigate all allegations of corruption to protect our borders and the integrity of DHS personnel, programs, and operations. Acts of corruption within DHS represent a threat to our nation and undermine the honest and hardworking employees who strive to maintain the integrity of the Department. Corruption will not be tolerated and those who choose to break the law will be pursued aggressively.”
ICE-OPR Special Agent-in-Charge Terence S. Opiola said: “The ICE Office of Professional Responsibility takes all allegations of employee misconduct seriously; and takes great pride in protecting the integrity of the ICE workforce and the agency mission through impartial and thorough investigations. The outcome of this investigation is the direct result of the successful, ongoing relationship between the ICE Office of Professional Responsibility and its law-enforcement partners.”
According to the two criminal Complaints unsealed today in Manhattan federal court:
NESBITT, an Immigration Enforcement Officer with Immigrations and Customs Enforcement (“ICE”), was responsible for, among other duties, escorting detained aliens both within the United States and internationally to foreign countries. In this capacity, he was authorized to carry a firearm at all times, and was able to avoid screening measures at airports to which civilian travelers are typically subjected.
Beginning in at least May 2013, NESBITT agreed to receive and distribute multiple packages containing cocaine, marijuana and other narcotics in the New York City area. He purchased the packages of narcotics from SINCENO and arranged for their delivery to THOMPSON’s residence in the Bronx. Once the packages reached THOMPSON’s residence, NESBITT sold the narcotics to his drug customers with her assistance.
Following his arrest last night, NESBITT, after being advised of, and waiving, his Miranda rights, stated: (1) he had purchased pound quantities of marijuana from SINCENO over the past two months; (2) THOMPSON had assisted him in distributing marijuana from her apartment; and (3) he had attempted to purchase $10,000 worth of cocaine from SINCENO, which he intended to sell. Following her arrest earlier today, THOMPSON, after being advised of, and waiving, her Miranda rights, admitted that she had assisted NESBITT in distributing marijuana from her apartment. Also earlier today, during a court-authorized search of THOMPSON’s residence, agents recovered a quantity of marijuana, a drug scale, and a set of ziplock bags.
NESBITT, 25, and THOMPSON, 33, both of the Bronx, New York, and SINCENO, 40, are each charged with one count of engaging in a conspiracy to violate the narcotics laws of the United States, namely, to distribute controlled substances containing marijuana and cocaine. They each face a maximum sentence of 20 years in prison.
Mr. Bharara praised the investigative work of the DHS-OIG and ICE-OPR. He also thanked ICE’s Homeland Security Investigations for its assistance in the investigation.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant United States Attorney Martin S. Bell is in charge of the prosecution.
The charges contained in the Complaints are merely accusations and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Nesbitt, Sinceno Complaint
U.S. v. Sherisse Thompson ComplaintEngineer Convicted of Tax Fraud and ObstructionRead the Press Release
Orlando, Florida - Acting United States Attorney A. Lee Bentley, III announces that a federal jury found Daniel M. Metz (54, Oviedo) guilty yesterday of filing false claims and obstructing the IRS. Metz faces a maximum penalty of five years in federal prison for the false claims charge and a maximum penalty of three years for the obstruction charge. His sentencing hearing is scheduled for October 28, 2013, before Senior District Judge Gregory A. Presnell. Metz was indicted on August 19, 2012.
According to testimony and evidence presented at trial, Metz's business account was the subject of an IRS civil audit in 2009. During the course of the audit, the auditor realized that Metz had not filed personal tax returns for years 2005, 2006, and 2007. After being told about the missing returns, Metz prepared the returns and attached false 1099s that he also had prepared. Metz then mailed the returns to the auditor. Suspecting that the 1099s were false, the auditor requested records from Metz's personal bank accounts. The banks confirmed that the 1099s were false. The personal returns were never processed. Had the returns been processed, Metz would have received approximately $330,344 in refunds from the IRS. Through various means, Metz tried to hinder the IRS's investigation, including filing a lawsuit against the IRS Commissioner and the special agent who was conducting a criminal investigation. That lawsuit was ultimately dismissed.
Evidence at trial also showed that Metz, in 2009, had filed personal returns using false 1099s, which canceled out almost $500,000 in tax debt he owed to the IRS.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorney Tanya Davis Wilson.
Eight Arrested in Puerto Rico on Charges of Illegal Trade in Endangered Sea Turtles for Human ConsumptionRead the Press Release
Federal authorities arrested eight people in the cities of Arroyo and Patillas, Puerto Rico, yesterday on felony and misdemeanor charges for the illegal take, possession and sale of endangered sea turtles and their parts for human consumption as well as aiding and abetting violations of the Endangered Species and Lacey Act, announced Robert G. Dreher, the Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division and Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
Roberto Guzman Herpin, 34, Madelyne Montes Santiago, 37, Edwin Alamo Silva, 50, Juan Soto Rodriguez, 45, Ricardo Dejesus Alamo, 33, Jose Javier Rodriguez Sanchez, 40, Iris Lebron Montanez, 53, and Miguel Rivera Delgado, 55, all residents of Patillas and Arroyo, were arrested Thursday and made their appearances in federal court.
The takedown was led by special agents of the U.S. Fish and Wildlife Service (FWS), with assistance from the recently formed Puerto Rico Environmental Crimes Task Force, the U.S. Marshals Service, the Puerto Rico Police Department and the Puerto Rico Department of Natural Resources. Participating agencies of the task force currently include prosecutors from the Justice Department’s Environmental Crimes Section and the U.S. Attorney’s Office for the District of Puerto Rico, FWS, the U.S. Environmental Protection Agency Criminal Investigation Division (EPA-CID), U.S. Immigration and Customs Enforcement- Homeland Security Investigations (ICE-HSI), the National Oceanic and Atmospheric Administration (NOAA) and the FBI.
In 2011, the FWS initiated an undercover operation to investigate the illegal trade in sea turtles for human consumption. During this investigation, it was determined that these illegal sales of sea turtle meat, confirmed through DNA analysis conducted by the FWS Forensic Lab, have resulted in the illegal take of 15 individual endangered hawksbill sea turtles (Eretmochelys imbricate) and 7 endangered green sea turtles (Chelonia mydas).
“Hawksbill and green sea turtles are protected by Puerto Rican law, nationally under the Endangered Species Act as well as internationally under CITES (Convention on International Trade in Endangered Species of Wild Flora and Fauna),” said U.S. Fish & Wildlife Service, Resident Agent in Charge David Pharo. “The protection from the illegal take and sale of this and of other marine life organisms is a priority of the U.S. Fish and Wildlife Service and is instrumental to the health of marine ecosystems for where they exist. These charges stem from a collaborative effort amongst law enforcement agencies to achieve a common goal of protecting our nation’s sensitive marine environments. It demonstrates our commitment to pursue those who violate fish & wildlife laws for the purpose of personal and or commercial gain as well as those that drive the illegal trade of marine life nationally and internationally.”
The cases are being prosecuted by Assistant U.S. Attorney Carmen Márquez. If convicted, the defendants face a maximum sentence of five years in prison and a $250,000 fine. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
The waters around Puerto Rico are designated as a critical habitat for the hawksbill and the green sea turtle. The most significant nesting for the hawksbill within the U.S. occurs in Puerto Rico and the U.S. Virgin Islands. Each year, about 500-1000 hawksbill nests are laid on Mona Island, Puerto Rico. The green sea turtle population has declined by 48-65 percent over the past century. Puerto Rico is also home to nesting sites for the endangered leatherback sea turtle, the largest species of turtle in the world. The leatherback sea turtle suffered a severe population crash due to human harvesting of its meat and eggs, and the destruction of its nesting habitat by beachfront development.
The Puerto Rico Environmental Crimes Task Force
Also today, representatives of federal criminal investigative agencies, the U.S. Attorney’s Office and the Department of Justice Environment and Natural Resources Division announced the creation of a Puerto Rico Environmental Crimes Task Force to investigate and prosecute environmental crimes on the island.
The commonwealth of Puerto Rico contains six national wildlife refuges (Cabo Rojo, Culebra, Desecheo, Laguna Cartagena, Navassa Island, Vieques) and is home to 25 endangered and threatened animal species, 21 of which are found nowhere else on earth. For instance, there are only 200 Puerto Rican parrots (Amazona vittata) remaining, with less than 50 left in the wild, making it one of the 10 rarest birds on Earth. The island is also home to 49 endangered and threatened plant species. There are 37 Resource Conservation and Recovery Act (RCRA) and Superfund cleanup sites on Puerto Rico.
Through the new task force, federal investigative agencies will coordinate their efforts to investigate and prosecute those responsible for committing serious environmental crimes. Federal laws have been enacted to protect the environment, but their enforcement requires the coordinated efforts and involvement of multiple federal law enforcement agencies with the assistance local law enforcement and the citizenry. The task force has three specific goals:
• Improve investigative coordination among the federal authorities who are responsible for protecting public health and the environment.
• Coordinate the available federal resources and improve the dissemination of information between the federal law enforcement agencies to better protect human health and the environment.
• Improve environmental awareness of the community to recognize violations of federal environmental laws and regulations.
“Through the effective and efficient coordination of federal agencies who will jointly investigate and prosecute environmental crimes on the island, the task force will help preserve the island’s abundant natural resources and wildlife, including endangered sea turtles,” said Robert G. Dreher, Acting Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. “It is our hope and vision that these efforts will raise greater awareness about environmental crime, bring those who knowingly harm the environment to justice, and help preserve the island’s environment for generations to come.”
“With the creation of this Task Force we aim to protect the environment and the public’s health from exposure to environmental hazards, said Rosa Emilia Rodríguez-Vélez United States Attorney for the District of Puerto Rico. “We will vigorously investigate and prosecute those who do not comply with the environmental laws of the United States.”
“Puerto Rico’s high asthma rates and its incredible natural resources make pollution prevention together with the rigorous enforcement of environmental laws critical to the people of Puerto Rico,” said EPA Regional Administrator Judith A. Enck. “By pooling EPA resources and those of other agencies, the EPA’s Criminal Investigation Division and EPA’s Caribbean Environmental Protection Division can maximize the ability to ensure that those who willfully violate environmental laws are held accountable.”
“The task force will strengthen already existing enforcement partnerships that help protect Puerto Rico’s wildlife and rich wildlife heritage,” said Special Agent in Charge Luis Santiago, who oversees U.S. Fish and Wildlife Service Office of Law Enforcement operations in southeastern states, Puerto Rico and the U.S. Virgin Islands.
“This enforcement task force will be a great help for us in our mission to conserve, protect, and manage living marine resources in the commonwealth,” said Otha Easley, Acting Special Agent in Charge of NOAA’s Office of Law Enforcement Southeast Division, which covers eight southern states and all U.S. Caribbean territories. “Puerto Rico has a rich and diverse ecosystem, and this partnership is a significant step forward in its protection.”
For more information of environmental crime laws: www.justice.gov/enrd/ENRD_ecs.html
For more information on marine turtles: www.nmfs.noaa.gov/pr/species/turtles/
Defendant Sentenced to 151 Months’ Imprisonment for Assaulting Correctional Counselor at the Metropolitan Detention CenterRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, New York, Ronald Atkinson was sentenced to a term of imprisonment of 151 months for his violent assault on a correctional counselor while incarcerated at the Metropolitan Detention Center in Brooklyn, New York. The sentence will run consecutively to the 86 months’ incarceration remaining on Atkinson’s 2010 sentence for bank robbery. The sentence was imposed by United States District Judge Edward R. Korman, who also imposed a term of supervised release of three years.
The sentence was announced by Loretta E. Lynch, United States Attorney for the
Eastern District of New York; and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office.“When held to account for his criminal activity that spanned the country, the defendant sought to continue his crime spree within the walls of the correctional institution, with his unprovoked and vicious assault on a federal employee. Today, Atkinson received the significant prison sentence called for by his actions,” stated United States Attorney Lynch. “Today’s sentence represents a clear warning to all federal prison inmates that assaults on Bureau of Prisons’ staff will be met with the full force of the law.”
Atkinson was arrested by the FBI on June 17, 2009, on charges that he committed four bank robberies in Manhattan and two in Las Vegas, Nevada. He was ordered detained and incarcerated at the Metropolitan Detention Center pending trial. On June 29, 2009, Atkinson committed a brutal and utterly unprovoked assault on a correctional counselor, punching him in the head multiple times until Atkinson was restrained. As a result of the assault, the correctional counselor suffered serious injuries, including a broken nose, broken bones under his right eye, broken bones in his right eye socket, a gash in his right cheek that required several stitches to close, two black eyes, a split lip, and two slipped discs in his neck, which continue to cause pain and numbness in the counselor’s arm and hand. The counselor also now suffers from migraines, vertigo, and post-traumatic stress disorder, none of which he suffered from prior to the assault.
As a result of all of these injuries, the counselor, an 18-year veteran of the Bureau of Prisons who had also worked at the Metropolitan Correctional Center in Manhattan and the Federal Detention Center in Miami, Florida, was forced to take a medical retirement from his job with the Bureau of Prisons.
Ms. Lynch thanked the Federal Bureau of Investigation and the Federal Bureau of Prisons for their assistance in this case.
The government’s case was prosecuted by Assistant United States Attorney Douglas M. Pravda.
The Defendant:
Name: RONALD ATKINSON
Age: 40Crowley Man Sentenced for Robbing Natchitoches Parish Post OfficeRead the Press Release
ALEXANDRIA, La. –United States Attorney Stephanie A. Finley announced thatRicky J. Scott, 44, of Crowley, La., was sentenced Wednesday by U.S. District Court Judge Dee D. Drell to 90 months in prison with three years supervised release for robbing a Cloutierville U.S. Post Office.
On Jan. 23, 2013, Scott pleaded guilty to robbery of U.S. property. According to evidence presented at the guilty plea, on Aug. 24, 2012, Scott approached a U.S. postal worker who was alone in the Cloutierville post office. Scott pretended to purchase a money order. After the employee opened the cash register, Scott, who appeared to have a weapon in his pocket, threatened her and told her to hand over the money. After the postal employee gave him money from the register, he fled the scene. After fleeing Natchitoches Parish, Scott was eventually apprehended by the Rapides Parish Sheriff’s Office.
The U.S. Postal Inspection Service, the Natchitoches Parish Sheriff’s Office, and the Rapides Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney D. Cytheria Jernigan prosecuted the case.
Connecticut Man Sentenced to 70 Months in Federal Prison for Mailing Threatening LettersRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ROLAND PREJEAN, also known as “Gary Joseph Gravelle,” 46, formerly of Thomaston and Morris, Conn., was sentenced today by Senior United States District Judge Warren W. Eginton in Bridgeport to 70 months of imprisonment, followed by three years of supervised release, for mailing numerous threatening letters.
According to court documents and statements made in court, in early September 2010, PREJEAN mailed a threatening letter to the Thomaston Post Office claiming that he had planted a hidden bomb on a remote timer in the Post Office. The letter resulted in the evacuation of the Thomaston Post Office as well as the Thomaston Town Hall and a Thomaston Public School, which were in the immediate vicinity of the Post Office. Bomb technicians from the Connecticut State Police Emergency Services Unit searched the post office for explosive or incendiary devices with negative results.
In addition, PREJEAN mailed a letter to a Connecticut Superior Court Judge in New London that included a substance that was represented to be “Liquid Anthrax,” and he sent threatening letters to a private individual and a probation officer in Connecticut. In those letters PREJEAN threatened to kill numerous people, including a federal employee.
At today’s sentencing, the government also presented evidence of more than 50 other threatening letters that PREJEAN mailed both prior to his arrest and while he was detained in federal custody.
PREJEAN has been detained since his arrest in North Dakota on September 7, 2010. On January 10, 2013, he pleaded guilty to one count of using the U.S. Mail to communicate a bomb threat and four counts of mailing threatening communications.
Acting U.S. Attorney Daly commended the substantial efforts and cooperation of the several agencies involved in this investigation including the Federal Bureau of Investigation in New Haven, Minneapolis, and Bismarck; the United States Postal Inspection Service in Connecticut and North Dakota; the United States Marshals Service in Connecticut; the Connecticut State Police Emergency Services Unit and the Thomaston Police Department.
Acting U.S. Attorney Daly also acknowledged the assistance provided by the U.S. Attorney’s Office for the District of North Dakota.
This case was prosecuted by Assistant United States Attorney David E. Novick.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Cocaine, Firearms Seized; Two Arrested in South County Drug Trafficking InvestigationRead the Press Release
PROVIDENCE, R.I. – An ongoing investigation into the alleged trafficking of crack cocaine in South Kingstown and Narragansett resulted in the arrest on Thursday of a Narragansett couple, Damon Graham, 33, and Ashley Sekator-Graham, 30, and the seizure of crack cocaine, cocaine powder and two firearms, announced United States Attorney Peter F. Neronha, South Kingstown Police Chief Vincent Vespia, Narragansett Police Chief Dean Hoxsie and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division.
Graham was ordered detained by U.S. District Court Magistrate Judge Lincoln D. Almond following his initial appearance in U.S. District Court on Thursday on a criminal complaint charging him with one count each of conspiracy to distribute cocaine base, conspiracy to possess with the intent to distribute 28 grams or more of cocaine base and being a felon in possession of a firearm.
Sekator-Graham was released to home confinement with electronic monitoring following an initial appearance before Magistrate Judge Lincoln D. Almond on Thursday on a criminal complaint charging her with one count each of conspiracy to distribute cocaine base and conspiracy to possess with the intent to distribute 28 grams or more of cocaine base.
According to an affidavit in support of the criminal complaints filed with the court, an investigation by South Kingstown Police, Narragansett Police and the Drug Enforcement Administration (DEA) into the alleged drug trafficking activities of the couple in South Kingstown included electronically monitored drug sales and the execution of a court authorized search of the couple’s Narragansett home. According to the affidavit, the search of the couple’s home resulted in the seizure of nearly 130 grams of crack cocaine, a 9mm handgun and ammunition, and more than $3,700 in cash.
In addition, a court authorized search of a storage unit in Narragansett resulted in the seizure of approximately seven ounces of cocaine powder and a .38 caliber handgun and ammunition.
A criminal complaintis merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
South Kingstown Police, Narragansett Police and DEA agents are being assisted in this matter by the Rhode Island State Police and agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case is being prosecuted by Assistant U.S. Attorneys Pamela E. Chin and Paul F. Daly, Jr.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Clayton Drug Dealer Sentenced to 30 Years ImprisonmentRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Terrence Boyle sentenced CALVIN DWIGHT MITCHELL, 27, of Clayton, North Carolina, to 360 months imprisonment followed by 10 years supervised release.
A Federal Grand Jury returned a Criminal Indictment on August 8, 2012, charging MITCHELL with one count of Conspiracy to Distribute and Possess with the Intent to Distribute 280 Grams or More of Cocaine Base (Crack) and Quantity of Cocaine, in violation of Title 21 U.S.C. §846, and one count of Distribution of Cocaine, 1 count of Aiding and Abetting Distribution of Cocaine, in violation of Title 21 U.S.C. §841. On May 24, 2013, after a 2 day trial, a jury convicted MITCHELL of the drug conspiracy and distribution counts.
The evidence in the case demonstrated that from at least March 2001, up to and including May 24, 2012, MITCHELL was involved in a drug conspiracy with several other individuals in the Smithfield area in a loose conspiracy to distribute cocaine and crack cocaine. Specifically, MITCHELL made statements immediately after his arrest and identified his sources of supply in the Smithfield area. All told, as part of the conspiracy, MITCHELL was held accountable for over 152 kilograms of crack cocaine. The evidence further showed that during the period of the drug conspiracy, MITCHELL sold crack cocaine to several informants, was convicted approximately nine times for selling cocaine, and sold approximately 27 grams of powder cocaine to an informant on May 24, 2012. Finally, during the trial, evidence was introduced showing that MITCHELL was involved in threats made to a confidential informant in July 2012.
Investigation of this case was conducted by the Johnston County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Rudy E. Renfer represented the government.
Chicago Man Sentenced to 5½ Years in Federal Prison for $2.6 Million Investment Fraud SchemeRead the Press Release
CHICAGO – A Chicago man was sentenced to 5½ years in federal prison for cheating about 35 victims of approximately $2.6 million in an investment fraud scheme. The defendant, ROBERT G. NELSON, offered and sold promissory notes, promising investors substantial returns, and instead used the money to pay earlier investors and for personal expenses.
Nelson, 40, who pleaded guilty to mail fraud last December, was sentenced yesterday to 66 months in prison by U.S. District Samuel Der-Yeghiayan. He was ordered to begin serving his sentence on Sept. 17, and the judge also ordered him to pay $2.643 million in restitution.
Nelson admitted that between January 2006 and the middle of 2008, he fraudulently obtained more than $6 million from investors by selling promissory notes personally and through his companies, F.C. Financial, Inc., Future Capital Financial Inc., and RGN Investment Group. He falsely promised that the notes were a safe and secure investment, and that proceeds from the sale of the notes would be used to purchase real estate and make investments that would promptly generate a high interest rate, sometimes as high as 45 percent within three months. He then used the money he obtained to pay earlier investors and for family expenses.
“Again and again, Nelson persisted in his scheme, assuring desperate investors that in exchange for one more investment, he would pay all of the monies that investor was owed. He thus fueled his fraud with more lies and false representations,” the government argued at sentencing.
In 2007, the Illinois Department of Securities prohibited Nelson and his companies from offering or selling promissory notes. The criminal investigation began after he violated the state order by continuing to sell promissory notes into the middle of 2008.
The sentence was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois. The investigation was conducted by the U.S. Postal Inspection Service in Chicago and the Illinois Secretary of State’s Securities Division. The government was represented by Assistant U.S. Attorney Kaarina Salovaara.
The case falls under the umbrella of the Financial Fraud Enforcement Task Force, which 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. For more information on the task force, visit: StopFraud.gov.
Charges Filed in Manhattan Federal Court Against Mokhtar Belmokhtar for His Role in Terror Attack in Algeria and Other CrimesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, John Carlin, the Acting Assistant Attorney General for National Security, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Raymond W. Kelly, the Police Commissioner of the City of New York (“NYPD”), today announced the filing of charges against MOKHTAR BELMOKHTAR for, among other things, his alleged participation in the January 2013 terrorist attack on a Western-owned gas processing facility near In Amenas, Algeria, that killed three Americans and scores of Algerian and foreign nationals. BELMOKHTAR is charged in an eight-count criminal Amended Complaint with various offenses including conspiracy to provide material support to al Qaeda and al Qaeda in the Islamic Maghreb (“AQIM”), hostage-taking conspiracy, kidnapping of internationally protected persons, and conspiring to use a weapon of mass destruction. BELMOKHTAR remains at large.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Mokhtar Belmokhtar unleashed a reign of terror years ago, in furtherance of his self-proclaimed goal of waging bloody jihad against the West. His efforts culminated in a four-day siege that left dozens dead, including three Americans, and hundreds of others fearing for their lives, as the Amended Complaint describes. For the victims, their families, and their friends, who hail from all over the world, five days must have seemed like an eternity. Belmokhtar brought terror and blood to these innocent people and now we intend to bring Belmokhtar to justice, as charged.”
Acting Assistant Attorney General for National Security John Carlin said: “The charges announced today underscore the Department’s commitment to bring to justice those responsible for attacks on Americans and American interests, no matter where they occur. I want to thank all of the agents, analysts, and prosecutors who helped bring about today’s result.”
FBI Assistant Director-in-Charge George Venizelos said: “The charges against Mokhtar Belmokhtar describe a fanatical jihadist leading an extremist vanguard of an extremist ideology. As alleged, he kidnapped diplomats, formed his own terrorist organization that pledged fealty to al Qaeda, and masterminded the murderous siege of a civilian plant in Algeria that resulted in the deaths of dozens of hostages, including three Americans. Belmokhtar, in furtherance of his ‘cause,’ has shown a commitment to kidnapping and murdering Western diplomats and other civilians. The cause of justice will be served by his apprehension and prosecution.”
NYPD Commissioner Raymond W. Kelly said: “The attack in Algeria underscores the fact that American lives remain at risk from al Qaeda and its affiliates. The NYPD remains committed to the interdiction of terrorists here and abroad and to the prevention of another terrorist attack in New York City.”
A Complaint against BELMOKHTAR initially was filed under seal in Manhattan federal court, on February 26, 2013, and is attached as an Exhibit to the Amended Complaint. As alleged in the Amended Complaint:
BELMOKHTAR was designated as a foreign terrorist by the U.S. Department of Treasury in 2003. As a key leader of al Qaeda’s efforts in North Africa, from 2008 through early 2013, BELMOKHTAR has orchestrated terror attacks involving the kidnapping and murder of numerous individuals. In support of al Qaeda, BELMOKHTAR has operated under the auspices of two groups: AQIM and the Al-Mulathamin Brigade and its recently formed battalion, “The Signers in Blood” (the “Battalion”).
In December 2008, BELMOKHTAR, and others acting at his direction, kidnapped two Western diplomats working in Niger as part of a United Nations mission. The victims were held for approximately four months and then released in Mali.
In early December 2012, BELMOKHTAR issued a video-taped statement in which he announced the formation of “The Signers in Blood” Battalion, identified the “emir” of the group as Ayman al- Zawahiri, the leader of al Qaeda, and called for fighting in Algeria and elsewhere to oppose Western influence. Several weeks later, BELMOKHTAR issued another video-taped statement in which he confirmed that the Battalion was “in [the] al Qaeda organization.”
On January 16, 2013, terrorists who were part of BELMOKHTAR’s Battalion attacked a Western-owned gas processing facility in Algeria, armed with AK-47s and rocket-propelled grenade launchers. The terrorists took numerous workers inside the facility hostage by force, including Algerian nationals and citizens of the United States, the United Kingdom, Japan, Norway, the Philippines, Colombia, Romania, and other nations, while other workers fled or hid inside the facility. The terrorists attached explosives to some of the hostages, wound detonation cord around their necks, and threatened to kill them. During the siege of the facility, numerous hostages, including three U.S. citizens, were killed.
On January 21, 2013, approximately one day after the siege ended, BELMOKHTAR appeared in an online video in which he claimed responsibility for the Battalion’s attack on the facility, on behalf of al Qaeda.
Three of the hostage-takers involved in the siege were arrested and detained by foreign authorities and later separately interviewed by U.S. law enforcement officers. The hostage-takers each acknowledged their membership in an al Qaeda group, of which BELMOKTAR was the “emir,” and further stated that they had received military training in another country prior to traveling to Algeria to conduct the attack in the name of al Qaeda.
The Amended Complaint charges BELMOKHTAR in eight Counts:
- Count One charges BELMOKHTAR with conspiring to provide material support to al Qaeda and AQIM, and carries a maximum penalty of life in prison;
- Count Two charges BELMOKHTAR with conspiring to take hostages, and carries a maximum penalty of life in prison or death;
- Count Three charges BELMOKHTAR with conspiring to discharge a firearm in furtherance of a crime of violence, and carries a maximum penalty of life in prison;
- Count Four charges BELMOKHTAR with discharging a firearm in furtherance of a crime of violence, and carries a maximum penalty of life in prison or death;
- Count Five charges BELMOKHTAR with conspiring to use and carry an explosive during the commission of a felony, and carries a maximum penalty of 20 years in prison;
- Count Six charges BELMOKHTAR with conspiring to kidnap internationally protected persons, and carries a maximum penalty of life in prison;
- Count Seven charges BELMOKHTAR with kidnapping of internationally protected persons, and carries a maximum penalty of life in prison; and
- Count Eight charges BELMOKHTAR with conspiring to use a weapon of mass destruction, and carries a maximum penalty of life in prison.
The investigation of BELMOHKTAR was the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York and the New York-based Joint Terrorism Task Force of the FBI, which is comprised of FBI agents and members of the NYPD. Mr. Bharara thanked the Justice Department’s National Security Division, the U.S. Department of Justice Office of International Affairs, the FBI’s International Operations Division, and the U.S. Department of State for their assistance, as well as the international law enforcement partners involved in this investigation.
The United States Department of State, through the Rewards for Justice Program, is offering a $5 million reward for information leading to the location of BELMOKHTAR. Please see the Rewards for Justice website for further details: http://www.rewardsforjustice.net.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Glen Kopp, Anna Skotko, and Shane Stansbury are in charge of the prosecutions, with assistance from Trial Attorney Stephen Ponticiello of the Counterterrorism Section of the Justice Department’s National Security Division.
The charges contained in the Amended Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Mokhtar Belmokhtar Amended Complaint
Camp Verde Man Sentenced to 15 Years for Violent AssaultRead the Press Release
PHOENIX, Ariz. – On July 17, 2013, Rosalio Perez Gutierrez, Jr., 26, of Camp Verde, Arizona, was sentenced by U.S. District Judge James A. Teilborg to 15 years imprisonment.
Gutierrez pleaded guilty on May 6, 2013 to the charge of Kidnapping, which involved an assault that occurred on March 26, 2012. After becoming angry during a domestic dispute, Gutierrez chased after another man who was walking down the street and wrestled him to the ground. While the victim was on the ground, Gutierrez held him down, pulled out a knife and began stabbing him multiple times in the head and arms. The victim sustained serious and life threatening injuries as a result of the assault. The kidnapping and related attack occurred on the Yavapai Apache Indian Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Yavapai Apache Police Department. The prosecution was handled by Dimitra H. Sampson, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-8190-PCT-JAT
RELEASE NUMBER: 2013-055_Gutierrez
# # #For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
California Man Sentenced to 960 Months for Producing<br /> Child Pornography Involving Two Young Virginia GirlsRead the Press Release
John Stuart Dowell, 47, of Santa Cruz, Calif., was sentenced late yesterday in Harrisonburg, Va., to serve 960 months in prison, followed by a lifetime of supervised release, for producing child pornography.
The sentence was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Western District of Virginia Timothy J. Heaphy.
Dowell was sentenced by U.S. District Judge Michael Urbanski in the Western District of Virginia.
In October 2012, Dowell pleaded guilty to 12 counts of using a minor to engage in sexually explicit conduct for the purpose of producing visual depictions of that conduct and one count of transportation of child pornography.According to a statement of facts entered into the record by the government and agreed to by the defendant, Dowell admitted that in late 2010 and early 2011 he was staying at a residence in Frederick County, Va. While staying at the home, Dowell repeatedly sexually abused a 3-year-old girl and filmed the abuse. A computer forensic examination further revealed that Dowell, in separate incidents, produced two videos of a 5-year-old female engaging in sexually explicit conduct. According to testimony provided at the sentencing hearing, Dowell also had a collection exceeding 70,000 images and videos of other child pornography and child erotica.
The investigation of the case was conducted by the Northern Virginia-District of Columbia Internet Crimes Against Children Task Force, with assistance from the FBI, the Department of Homeland Security’s Immigration and Customs Enforcement, and the San Jose, Calif., Police Department, as well as Danish law enforcement officers and Interpol. The High Tech Investigative Unit from the Department of Justice’s Child Exploitation and Obscenity Section (CEOS) conducted the forensic examination. Assistant U.S. Attorney Nancy S. Healey and CEOS Trial Attorney Darcy Katzin are prosecuting the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.California Man Sentenced to 960 Months for Producing Child Pornography Involving Two Young Virginia GirlsRead the Press Release
WASHINGTON – John Stuart Dowell, 47, of Santa Cruz, Calif., was sentenced late yesterday in Harrisonburg, Va., to serve 960 months in prison, followed by a lifetime of supervised release, for producing child pornography.
The sentence was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Western District of Virginia Timothy J. Heaphy.
Dowell was sentenced by U.S. District Judge Michael Urbanski in the Western District of Virginia.
In October 2012, Dowell pleaded guilty to 12 counts of using a minor to engage in sexually explicit conduct for the purpose of producing visual depictions of that conduct and one count of transportation of child pornography.
According to a statement of facts entered into the record by the government and agreed to by the defendant, Dowell admitted that in late 2010 and early 2011 he was staying at a residence in Frederick County, Va. While staying at the home, Dowell repeatedly sexually abused a 3-year-old girl and filmed the abuse. A computer forensic examination further revealed that Dowell, in separate incidents, produced two videos of a 5-year-old female engaging in sexually explicit conduct. According to testimony provided at the sentencing hearing, Dowell also had a collection exceeding 70,000 images and videos of other child pornography and child erotica.
The investigation of the case was conducted by the Northern Virginia-District of Columbia Internet Crimes Against Children Task Force, with assistance from the FBI, the Department of Homeland Security’s Immigration and Customs Enforcement, and the San Jose, Calif., Police Department, as well as Danish law enforcement officers and Interpol. The High Tech Investigative Unit from the Department of Justice’s Child Exploitation and Obscenity Section (CEOS) conducted the forensic examination. Assistant U.S. Attorney Nancy S. Healey and CEOS Trial Attorney Darcy Katzin are prosecuting the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
13-819
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.Bridgeport Man Charged with Federal Firearm OffensesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that Rev. PAUL GOTTA, 55, of Bridgeport, formerly of East Windsor, was arrested today by the Bureau of Alcohol, Tobacco, Firearms and Explosives on federal firearm charges.
GOTTA is charged in a federal criminal complaint with aiding and abetting both the unlawful transport of a firearm in interstate commerce and the purchase of a handgun by a juvenile. The maximum penalty for these offenses is five years of imprisonment and a $250,000 fine.
GOTTA is detained pending a hearing that is scheduled for July 25 at 2:00 p.m. before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport.
Acting United States Attorney Daly stressed that an arrest is not evidence of guilt. Charges are only allegations, and that every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Windsor Police Department. The case is being prosecuted by Assistant United States Attorney Robert M. Spector and Special Assistant United States Attorney Natasha M. Dye.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Boonville Man Sentenced for Child PornRead the Press Release
Project Safe Childhood
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Boonville, Mo., man has been sentenced in federal court for attempting to distribute child pornography over the Internet.
Paul E. Durham, 34, of Boonville, was sentenced by U.S. Chief District Judge Fernando J. Gaitan on Thursday, July 18, 2013, to seven years in federal prison without parole.
On Feb. 11, 2013, Durham pleaded guilty to attempting to distribute child pornography over the Internet.
In December 2011, a detective with the Mid-Missouri Internet Crimes Task Force used an automated software program to browse and download suspected child pornography files through a peer-to-peer file-sharing network. Durham’s computer was identified as having child pornography available to share online. The file-sharing program on Durham’s computer allowed him to obtain child pornography from other users, and to share child pornography with others over the Internet.
Law enforcement officers executed a search warrant on Feb. 2, 2012, at the home of Durham’s mother, where he resided. They seized a laptop computer and an external hard drive. During an examination of the contents of the computer media, examiners found at least 52 images of child pornography and 17 movies of child pornography. There were images and video depicting prepubescent children engaged in sexual acts with adults. One video depicted a young girl engaged in bestiality. Some of the material depicted children engaged in sadistic or masochistic conduct.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Boone County, Mo., Sheriff’s Department, the Cooper County, Mo., Sheriff’s Department, the FBI and the Mid-Missouri Internet Crimes Task Force.
Project Safe Childhood
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."Belcourt Man Sentenced for Sexual AbuseRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on July 19, 2013, Nodin J. Azure, 25, Belcourt, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of sexual abuse. Azure pleaded guilty to the charge on Jan. 23, 2013.
Judge Hovland sentenced Azure to five years’ and 10 months’ imprisonment to be followed by five years of supervised release. He was ordered to pay a $100 special assessment to the Crime Victim’s Fund and to pay restitution in the amount of $3,136.41. Azure was also ordered to register as a sex offender.
On May 24, 2011, Azure went into a bedroom where a woman was sleeping and proceeded to have sexual intercourse with her. When the victim awoke, she pushed Azure off of her, fled the residence, and drove to the hospital. This offense occurred on the Turtle Mountain Indian Reservation.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs – Turtle Mountain Agency.
Assistant U.S. Attorney Brandi Sasse Russell prosecuted the case.
Aide to Former Council Member Harry L. Thomas, Jr. Pleads Guilty to Charge Involving $110,000 Grant That Funded an Inaugural Ball-Sixth Person to Plead Guilty in Investigation of Misuse of Funds-Read the Press Release
WASHINGTON – Ayawna Webster, who was an aide and chief of staff for former District of Columbia Council Member Harry L. Thomas, Jr., pled guilty today to a criminal tax charge for her role in channeling $110,000 in youth grant funds used to pay for an inaugural ball.
The guilty plea, which took place in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation.
Webster, 36, of Washington, D.C., pled guilty to attempting to interfere with the administration of the Internal Revenue Service laws. The Honorable John D. Bates scheduled sentencing for Nov. 1, 2013. The charge carries a maximum statutory sentence of three years in prison and a fine of up to $250,000. Under federal sentencing guidelines, the parties have agreed that the likely range is up to six months of incarceration and a fine of $1,000 to $10,000.
Webster is the sixth person to plead guilty to charges in an ongoing investigation into activities involving former Council Member Thomas. Thomas pled guilty last year to charges stemming from a scheme in which he used more than $350,000 in taxpayers’ money that was earmarked for the arts, youth recreation, and summer programs for his own personal benefit, including to pay for vehicles, clothing and trips. He resigned as a condition of his plea agreement and is now serving a 38-month prison sentence.
The others who have pled guilty include James Garvin and Marshall D. Banks, leaders of one of the non-profits used in the scheme. Both men, from the Langston in the 21st Century Foundation, pled guilty to misprision of a felony, a charge holding them accountable for failing to report and concealing the misappropriation of $392,000 in government grants. Additionally, Danita C. Doleman, the president of Youth Technology Institute, pled guilty to filing a false return in connection with her assistance in funneling public money to pay for the 51st State Inaugural Ball. Finally, Millicent D. West, the former director and chief executive officer of a non-profit organization that promotes youth opportunities, pled guilty to a criminal tax charge for her role in channeling the youth grant funds to pay for the ball.
Garvin and Banks were sentenced to three years of supervised probation, 80 hours of community service, and ordered to pay full restitution. Doleman and West are awaiting sentencing.
“Today Ayawna Webster became the sixth person to plead guilty as part of the investigation of her former boss, Council Member Harry Thomas, Jr.,” said U.S. Attorney Machen. “Her guilty plea is another reminder of the foolishness of going along with criminal schemes to placate corrupt public officials. This investigation is continuing.”
“Ms. Webster failed to report the illegal use of public funds, causing money dedicated to District of Columbia youth to be diverted to a single person for their own benefit,” said Assistant Director in Charge Parlave. “This plea, along with that of others who helped to conceal this scheme, shows that those who commit corruption, as well as those who allow it, will be held accountable for their actions.”
“IRS Criminal Investigation is committed to working with our law enforcement partners to combat public corruption,” said Special Agent in Charge Kelly. “Ms. Webster's plea today is a reminder to all that any abuse of the public trust is a serious matter and those violating that trust will be held accountable.”
Webster worked from January 2007 until December 2010 as Thomas’s director of constituent services. In January 2011, he promoted her to be his chief of staff. In addition to her work duties, Webster was the president of a local chapter of a political organization.
Thomas, who took office in January 2007 as the Ward 5 representative, served during his first term as Chair of the Council’s Committee on Libraries, Parks, Recreation and Planning, which involved oversight responsibility for the D.C. Department of Parks and Recreation. In that role, he worked with a non-profit public-private partnership that provided resources and developed programs to benefit children and youth in the District of Columbia.
The partnership was primarily funded by the District of Columbia government through funds designated by the Mayor and Council for particular youth-related purposes. The partnership provided grants to organizations for programs tailored for children and youth.
The charge against Webster deals mostly with her role in the 51st State Inaugural Ball, held on Jan. 20, 2009 in the Wilson Building. Thomas was closely involved in the planning. He had sought to host the event, but was prohibited from doing so. He then asked Webster if her political organization would serve as the host. She agreed, and she then organized the event, including booking entertainment and contracting with caterers, janitorial services and decoration providers, at Thomas’s direction.
The ball was an adult, formal, black-tie event open to members of the public who had purchased tickets for $51 apiece. Webster tried to get a liquor license for the ball, but the request was denied because of its location at the Wilson Building. Before the event occurred, Webster knew that ticket sales were not generating enough money to cover costs. As the event approached, Thomas assured Webster that she would get the funds to pay for the ball. However, after the event, she was unable to pay vendors. Thomas then directed Webster to contact a staff member, who was director of the Committee on Libraries, Parks, Recreation and Planning.
On Jan. 29, 2009, this staff member submitted budget paperwork to the public-private partnership seeking a grant of $110,000 for Webster’s political organization that would fund a “youth/young adult inauguration celebration.” The public-private partnership requested that Webster’s organization complete a tax form to enable check processing. At the direction of the staff member, Webster subsequently completed a tax form, backdated to Jan. 4, 2009, that falsely listed her organization’s name as “DC Young America.”
The grant recipient eventually was changed to the Youth Technology Institute, another non-profit, and new paperwork was submitted leading to the release of the funds.
In truth, the Youth Technology Institute immediately forwarded nearly the entire amount to Webster’s political organization. In addition to paying expenses for the inaugural ball, Webster received permission from Thomas to use some of the grant funds for other purposes, including expenses she incurred while traveling on behalf of her political organization. Also, funds were used to pay a vendor that supplied services to another of Thomas’s events.
In her plea, Webster also admitted failing to report her organization’s political activity. During a hearing in February 2010 of the District of Columbia Office of Campaign Finance, for example, she testified that the organization did not have any financial activity during the time period in which it actually obtained $104,500 for expenses associated with the inaugural ball.
Also, for the fiscal year ending Sept. 30, 2009, Webster never filed federal or District of Columbia tax returns on behalf of the organization.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director in Charge Parlave and Special Agent in Charge Kelly praised the work of the investigators from the FBI’s Washington Field Office and IRS-CI who worked on the case. They also acknowledged the efforts of those who worked on the case form the U.S. Attorney’s Office, including Criminal Investigators Matthew Kutz, Mark Crawford and Melissa Matthews; Paralegal Specialists Tasha Harris, Diane Hayes, Shanna Hays, Lenisse Edloe and Monica Johnson; Legal Assistant Krishawn Graham, and former Assistant U.S. Attorney Bridget Fitzpatrick. Finally, they commended the work of Assistant U.S. Attorneys Jonathan W. Haray, David Johnson, and James E. Smith, who are prosecuting the matter.
13-252Abilene, Texas, Resident Sentenced to 37 Months in Federal Prison for Failing to Register as A Sex OffenderRead the Press Release
LUBBOCK, Texas — John Brandon Rice, 25, most recently a resident of Abilene, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 37 months in federal prison, following his guilty plea in April 2013 to one count of failing to register as a sex offender, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in January 2009, Rice was sentenced in California for the felony sex offense of unlawful sexual intercourse and was sentenced to a three-year term of probation with a condition that he must serve 180 days in jail. In May 2010, the probated sentence was terminated and a state prison term of 32 months was imposed. As a result of this conviction, Rice was required under California law to register as a sex offender for life.
In June 2012, Rice began residing in Abilene and working as a landscaper and for a roofing business. Rice admits that he knowingly failed to register, and update his registration as a sex offender because he had an outstanding parole warrant form California and he did not want them to know where he was. Under the Sex Offender Registration and Notification Act (SORNA), persons who are required to register as sex offenders are required to register within three days of moving from one state to another.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the U.S. Marshals Service. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
18 July 2013
Wheeling Man Sentenced to Thirteen Years for Distribution of PainkillersRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Six Others Sentenced in Federal Court
WHEELING, WEST VIRGINIA - Three of the defendants in a major tri-state drug trafficking investigation were among seven people who were sentenced in Federal Court in Wheeling.
According to United States Attorney William J. Ihlenfeld, II, DEANDRE SCOTT ESTELLE, age 43, of Wheeling, was sentenced to 165 months imprisonment to be followed by three years of supervised release for “Conspiracy to Distribute Schedule I and Schedule II Controlled Substances.” ESTELLE was remanded to the custody of the United States Marshal pending designation to a Federal institution.
ROBIN E. RUSK, age 27, of Wheeling, was sentenced to 41 months imprisonment to be followed by three years of supervised release for “Conspiracy to Distribute Schedule I and Schedule II Controlled Substances.” RUSK, who is free on bond, will self-report to the designated Federal institution.
JENNY E. KOTA, age 22, of Wheeling, was sentenced to 3 years probation for “Conspiracy to Distribute Schedule I and Schedule II Controlled Substances.”
ESTELLE, RUSK, and KOTA were among 29 people who were charged in an investigation that included extensive surveillance, controlled purchases of narcotics, executions of search warrants, and seizures of narcotics, automobiles, and United States Currency.
These cases were prosecuted by Assistant United States Attorney Randolph J. Bernard and was investigated by the Ohio Valley Drug Task Force, which includes officers and agents from the Wheeling Police Department, the Ohio County Sheriff’s Department, and the Drug Enforcement Administration. Substantial assistance was provided by the Hancock-Brooke -Weirton Drug Task Force, which is made up of Weirton Police Officers, Hancock County Sheriff’s Deputies, and DEA Agents.
The following criminal defendants were also sentenced in Federal Court:
TONICA MITCHELL, age 28, formerly of Martins Ferry, Ohio, was sentenced to 37 months imprisonment to be followed by three years of supervised release for the “Conspiracy to Engage in Interstate Travel in Aid of a Racketeering Enterprise.” MITCHELL, who is free on bond, will self- report to the designated Federal institution.
ANTON DRAKE, age 32, of Wheeling, was sentenced to 24 months imprisonment to be followed by three years of supervised release, for the “Distribution of Cocaine” in Benwood, West Virginia. DRAKE was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The Mitchell and Drake cases were prosecuted by Assistant United States Attorney John C. Parr and investigated by the Ohio Valley Drug & Violent Crime Task Force.
ERICA MORRIS HERCULES, age 29, of Wheeling, was sentenced to 18 months imprisonment to be followed by three years of supervised release for “Aiding and Abetting a Prohibited Person in the Possession of a Firearm.” HERCULES was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The Hercules case was prosecuted by Assistant United States Attorney Stephen L. Vogrin and was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives along with the Wheeling Police Department.
JEFFREY BERESFORD, age 53, of Cameron, West Virginia, was sentenced to one year probation for the “Falsification of Union Records” from April of 2008 to January of 2010 by willfully falsifying his Plumbers ALF-CIO Local Union mileage logs. BERESFORD was also order to make restitution in the amount of $4,507.75 to the Union.
The Beresford case was prosecuted by Assistant United States Attorney David J. Perri and was investigated by the United States Department of Labor-Office of Labor Management Standards.
Webster Parish Accountant Sentenced for FraudRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that Murlin D. Graham, 37, of Bossier City, La., was sentenced by U.S. District Judge Donald E. Walter to 36 months in prison and three years of supervised release. He was also ordered to pay $582,333 in restitution and forfeit a Stingray speedboat and travel trailer. He pleaded guilty on April 16, 2013.According to evidence presented at the guilty plea, Graham created “shell companies” with names similar to those that did business with CW&W Contractors Inc., which is where he worked as an accountant. The “shell” companies had bank accounts but provided no services. The “shell” company accounts were solely under Graham’s control. Graham caused CW&W to make payments to his “shell” companies rather than to CW&W’s actual customers on multiple occasions for almost two years. As a result of his fraudulent conduct, Graham stole $582,333 from CW&W.
“The defendant in this case sought to hide his theft but was ultimately brought to justice,” Finley stated. “Through his actions, this trusted employee deprived his employer of business income and cost himself time in federal prison. We will continue to prosecute cases like this to the fullest extent of the law.”
“This case is another example of local and federal authorities working together to achieve a common goal of bringing justice to the citizens of Webster Parish,” said Gary Sexton, Webster Parish Sheriff.
The FBI and the Webster Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Cytheria Jernigan prosecuted the case.
Virginia, Minnesota, Felon Sentenced for Possessing A .38-caliber RevolverRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 49-year-old felon from the northern Minnesota community of Virginia was sentenced for possessing a .38-caliber revolver. United States District Court Judge Patrick J. Schiltz sentenced John Carl Pape to 180 months in prison on one count of being a felon in possession of a firearm. Pape was indicted on October 15, 2012, and pleaded guilty on January 31, 2013.
In his plea agreement, Pape admitted possessing the Smith & Wesson, five-shot revolver on May 6, 2012. On that day, police received a complaint that two vehicles had been vandalized in a church parking lot in Eveleth, Minnesota. One of the victims stated that her purse was stolen, and that it contained the gun and credit cards, among other items. Later that day, Pape was questioned by authorities and admitted attempting to make purchases and withdrawals with the victim’s stolen credit card. During the subsequent execution of a search warrant at Pape’s residence on May 6 and 7, 2012, officers seized items linked to the theft, including the gun.
Because he is a felon, Pape is prohibited under federal law from possessing firearms at any time. His previous St. Louis County convictions include third-degree burglary (1991 and 2004), fifth-degree possession of drugs (2007 and 2008), and fifth-degree sale of marijuana (1998).Since at least three of Pape’s prior convictions constitute crimes of violence or major drug crimes, he was subject to the federal Armed Career Criminal Act if convicted in the current federal case. That act mandates a minimum of 15 years in federal prison.
This case was the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.Veteran Sentenced to Two Years in Prison for Lying to Obtain Disability BenefitsRead the Press Release
Raleigh, North Carolina - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever sentenced ANTHONY PATRICK STANFORD, 39, of Fayetteville, NC, to 24 months in prison, followed by 3 years of supervised release, upon conviction for Making Material False Statements to the Department of Veterans Affairs (VA), in violation of Title 18, United States Code, Section 1001, and Making Material False Statements to the Social Security Administration (SSA), in violation of Title 18, United States Code, Section 1001. Chief Judge Dever further ordered STANFORD to pay restitution of $519,293.07 to the VA and $7,575.30 to the SSA.
U.S. Attorney, Thomas G. Walker stated, “This case sends a strong message that those who steal the limited, taxpayer funds set aside for our servicemen and women who have suffered catastrophic injuries, will pay a steep price for their crimes. This office commends the work of the VA and SSA for their hard work to achieve justice in this case.”
STANFORD served in the United States Army from February 1, 1996 to June 30, 2005. Upon completion of basic training, STANFORD was assigned as a laundry specialist, but was also engaged in marching, running and field activities, until 1999. In December of 2005, STANFORD underwent a joint evaluation during which he made various representations, including that he was unable to stand, walk, lift, or hold objects. STANFORD further represented that for most of his daily living activities, including feeding, dressing, bathing, and using the toilet, he required help from another person.
Based upon STANFORD’s representations to the VA physician, the VA found that STANFORD had suffered a 100% loss of use of both of his upper and lower extremities. The VA further found that STANFORD qualified for various forms of financial assistance from the VA, including “aid and attendance” benefits, automobile and adaptive equipment benefits, and specially adapted housing benefits. Among other benefits, STANFORD began to receive monthly compensation in excess of $7,000 in connection with his alleged losses. STANFORD received these benefits during the period between 2005 and 2012. In addition to his application for benefits with the VA, STANFORD also applied for and obtained disability benefits with the United States Social Security Administration (SSA). In total, STANFORD collected $521,003.07 from the VA, and another $7,575.30 from the SSA.
Although STANFORD collected monthly compensation payments and other benefits from the VA and the SSA under the pretense of a complete loss of use of his upper and lower extremities, STANFORD could, in fact, use his upper and lower extremities. STANFORD did not require assistance to feed himself, dress himself, bathe himself, or to use the toilet as claimed. STANFORD was not wheelchair bound, and in fact, could walk and drive a car. STANFORD also had the ability to pick up and carry objects, and to carry on meaningful physical labor. During the course of the scheme, STANFORD even took a trip to Disney World without the aid of a cane, walker, or wheelchair.
On March 16, 2011, STANFORD presented to a VA physician for a continuing evaluation of his physical condition. During the evaluation STANFORD falsely represented that he required help from another person for feeding, bathing, and use of the toilet. Additionally, on October 4, 2011, in Fayetteville, North Carolina, STANFORD presented himself before representatives of the SSA for a continuing disability review. During the course of the review, STANFORD falsely represented that he could not dress, bathe, take medicine, prepare meals, do chores, shop, walk, stand, or lift objects over two pounds, without assistance from another person. STANFORD subsequently admitted to these falsehoods and indicated that he exaggerated his conditions in connection with both reviews because if he had told the truth then his benefits would have been terminated.
In total, STANFORD improperly collected $521,003.07 from the VA, and another $7,575.30 from the VA. At sentencing, the court ordered STANFORD to repay the stolen funds as restitution. STANFORD’s future VA benefits have been garnished.
Investigation of this case was conducted by the Department of Veterans Affairs Office of the Inspector General, and the Social Security Administration Office of the Inspector General. Assistant United States Attorney William M. Gilmore represented the United States.
United States Settles Medicare Billing Fraud Lawsuit with Multi-Specialty Health Care Provider for $1 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Thomas O’Donnell, Special Agent-in-Charge of the Department of Health and Human Services, Office of Inspector General (HHS-OIG), New York region, announced today that the United States has settled for $1 million a civil health care False Claims Act lawsuit it filed on March 5, 2013 in Manhattan federal court against PARK AVENUE MEDICAL ASSOCIATES, P.C., PARK AVENUE HEALTH CARE MANAGEMENT, LLC, and PARK AVENUE HEALTH CARE MANAGEMENT, INC. (collectively “PAMA”), affiliated companies in the business of providing multi-specialty medical services in New York. This settlement resolves a lawsuit alleging that PAMA billed Medicare for services purportedly provided to elderly, mentally ill patients that were not medically necessary, were not documented in the medical record, or failed otherwise to comply with Medicare rules and regulations. The settlement was approved today by U.S. District Court Judge Colleen McMahon.
Manhattan U.S. Attorney Preet Bharara said: “In these lean budget times, it’s especially important that federal dollars be reserved for Medicare’s prescribed purposes, and not lost to fraud or abuse by companies like Park Avenue Medical Associates. This Office will continue to work hard to protect the Medicare program and prevent taxpayers from paying for unnecessary services.”
HHS-OIG Special Agent-in-Charge Thomas O’Donnell said: “For over a dozen years, Park Avenue Medical Associates submitted fraudulent claims to pad their pockets at Medicare’s expense, a practice that will simply not be tolerated. Through this settlement, PAMA is owning up and paying the price for their misconduct.”
According to the allegations contained in the Complaint filed in March 2013 in Manhattan federal court:
PAMA directly employs physicians, nurses and other medical professionals who provide services to elderly patients at hospitals, including inpatient psychiatric facilities, nursing homes, and assisted living facilities, among other types of long-term care facilities. The patients and residents at these facilities suffer from various chronic health conditions, including Alzheimer’s disease, dementia, schizophrenia, psychosis, depression and anxiety. The doctors and nurses employed by PAMA receive a salary from PAMA, which contracts with the facilities. In addition to their regular salaries, psychiatrists and psychologists employed by PAMA receive bonuses based on how many services they provide and the level of reimbursement they generate for PAMA from government and other insurance providers, including Medicare.
Medicare prohibits payment for services that are not “reasonable and necessary” for the diagnosis or treatment of an illness or injury. Medicare also prohibits payment for any claim without adequate documentation substantiating the reasonableness and necessity of the services provided. In particular, Medicare does not cover psychotherapy services rendered to patients with Alzheimer’s disease or dementia unless the patient’s dementia is mild, the patient has the capacity to recall what occurred at the therapy from one session to the next, and that capacity is documented in the patient’s record. Psychotherapy services are not covered when dementia has produced a severe enough cognitive defect to prevent psychotherapy from being effective. In addition, Medicare provides that psychiatric diagnostic examinations are covered only once for each episode of illness or suspected illness in a patient.
In violation of Medicare policies, as well as its own policies, PAMA provided psychotherapy to patients who lacked the capacity to benefit from it due to severe dementia. In addition, PAMA billed for psychiatric evaluations that were duplicative, failed to comply with Medicare rules, and reflected a lack of coordination of care both among PAMA’s own psychiatrists, psychologists and nurses, and between PAMA’s employees and staff at the facilities at which PAMA performed services. In fact, PAMA billed Medicare for a far larger number of all of these services per psychiatrist and psychologist during the period 2001 through 2012 than any other provider with a similar patient population in the New York area.
In the settlement, PAMA admitted the following:
- In many instances, PAMA billed Medicare for psychiatric diagnostic examinations without demonstrating that they had adequately documented the patient’s medical and/or psychiatric history and/or mental status;
- In many instances, PAMA billed Medicare for multiple psychiatric diagnostic examinations after receiving multiple orders for such, but without demonstrating that the examinations complied with certain applicable Medicare rules, including those that allow for multiple examinations only when there is a demonstrated hiatus in the condition of the patient or the beginning of a new spell of illness; and
- In many instances, PAMA billed Medicare for psychotherapy services to patients who suffered from dementia or other cognitive disorders without demonstrating that the patients had the capacity to benefit from the psychotherapy.
As part of the settlement, PAMA also entered into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General.
Mr. Bharara thanked the Department of Health and Human Services, Office of the Inspector General, for its assistance in this case.
This case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Heidi A. Wendel and Mara E. Trager are in charge of the case.
U.S. v. Park Ave Medical Associates, et al. Stipulation and Settlement
U.S. v. Park Ave Medical Associates, et al. ComplaintUnited States Reaches an Agreement with XTO Energy to Prevent Waste Spills from Natural Gas Exploration and ProductionRead the Press Release
The U.S. Environmental Protection Agency and the U.S. Department of Justice announced a settlement with XTO Energy Inc., a subsidiary of Exxon Mobil Corporation, to resolve an alleged violation of the Clean Water Act (CWA) related to the discharge of wastewater from XTO’s Penn Township, Lycoming County, Pa. facility used for the storage of wastewater generated by natural gas exploration, commonly known as fracking, and production.
The federal settlement requires that XTO pay a penalty of $100,000 to the United States and spend a federal government-estimated $20 million on a comprehensive plan to improve wastewater management practices to recycle, properly dispose of, and prevent spills of wastewater generated from natural gas exploration and production activities in Pennsylvania and West Virginia. Among other things, XTO must install a continuous, remote monitoring system for all of its permanent production located throughout Pennsylvania and West Virginia with alarms that will be triggered to alert operators immediately in the event of any future spills and implement a program to actively monitor interconnected wastewater storage tanks located throughout Pennsylvania and West Virginia.
The discharge was discovered by the Pennsylvania Department of Environmental Protection (PADEP) during an inspection of the Penn Township facility, where a PADEP inspector observed wastewater spilling from an open valve from a series of interconnected tanks. At the time, XTO stored wastewater generated from energy extraction activities conducted throughout Pennsylvania at its Penn Township facility and, at the time of the release, stored produced fluid from its operations in the area.
Pollutants from the release were found in a tributary of the Susquehanna River basin. EPA, in consultation with PADEP, conducted an investigation and determined that wastewater stored in the tanks at the Penn Township facility contained the same variety of pollutants, including chlorides, barium, strontium, and total dissolved solids, that were observed in those surface waters.“Today’s settlement holds XTO accountable for a previous violation of the Clean Water Act and requires operational changes and improved management practices to help ensure the safe and responsible handling of wastewater produced during natural gas exploration and production activities,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “The Justice Department is committed to ensuring that our natural resources are developed in an environmentally responsible manner.”
Under the settlement with the United States, the substantial improvements to XTO’s wastewater management are estimated by the federal government to reduce discharges of total dissolved solids by 264 million pounds over the course of the next three years. These reductions will occur in large part because XTO will increase wastewater recycling and will properly dispose of wastewaters generated by its natural gas activities across the mid-Atlantic region. In addition XTO will implement a region-wide program of operational best management practices which include: secondary containment for tanks used to store wastewater, improved standard operating procedures designed to reduce the risk of a spill, a prohibition on using pits or open-top tanks to store wastewater which will prevent air emissions, remote monitoring of tank volumes to prevent overfilling and spills, and proper signage on all tanks with safety information and a manned, 24-hour emergency phone number.
“The operational improvements required by today’s settlement will help to protect precious surface and drinking water resources in Pennsylvania and West Virginia,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “EPA continues to push for responsible development of domestic sources of energy and to insist that companies play by the rules that protect public health.”
“This consent decree establishes a program of best practices that should be a model for the industry and, if followed, will give a level of assurance to the people of the Commonwealth that their waters will be protected. This settlement is in the long-term best interest of the taxpayers, the industry, and our children,” stated Peter J. Smith, U.S. Attorney for the Middle District of Pennsylvania.
Untreated discharges of wastewaters from natural gas exploration and production activities typically contain high levels of total dissolved solids and other pollutants and can adversely impact fresh water aquatic life and drinking water quality.
The consent decree, lodged in the Middle District of Pennsylvania, is subject to a 30-day public comment period and court approval. The consent decree is available for review at www.justice.gov/enrd/Consent_Decrees.html
More information about the settlement: http://www2.epa.gov/enforcement/xto-energy-inc-settlement
More information about EPA Region III’s activities related to natural gas extraction: http://www.epa.gov/region3/marcellus_shale/United States Reaches an Agreement with XTO Energy to Prevent Waste Spills from Natural Gas Exploration and ProductionRead the Press Release
WASHINGTON - The U.S. Environmental Protection Agency and the U.S. Department of Justice announced a settlement with XTO Energy Inc., a subsidiary of Exxon Mobil Corporation, to resolve an alleged violation of the Clean Water Act (CWA) related to the discharge of wastewater from XTO’s Penn Township, Lycoming County, Pa. facility used for the storage of wastewater generated by natural gas exploration, commonly known as fracking, and production.
The federal settlement requires that XTO pay a penalty of $100,000 to the United States and spend a federal government-estimated $20 million on a comprehensive plan to improve wastewater management practices to recycle, properly dispose of, and prevent spills of wastewater generated from natural gas exploration and production activities in Pennsylvania and West Virginia. Among other things, XTO must install a continuous, remote monitoring system for all of its permanent production located throughout Pennsylvania and West Virginia with alarms that will be triggered to alert operators immediately in the event of any future spills and implement a program to actively monitor interconnected wastewater storage tanks located throughout Pennsylvania and West Virginia.
The discharge was discovered by the Pennsylvania Department of Environmental Protection (PADEP) during an inspection of the Penn Township facility, where a PADEP inspector observed wastewater spilling from an open valve from a series of interconnected tanks. At the time, XTO stored wastewater generated from energy extraction activities conducted throughout Pennsylvania at its Penn Township facility and, at the time of the release, stored produced fluid from its operations in the area.
Pollutants from the release were found in a tributary of the Susquehanna River basin. EPA, in consultation with PADEP, conducted an investigation and determined that wastewater stored in the tanks at the Penn Township facility contained the same variety of pollutants, including chlorides, barium, strontium, and total dissolved solids, that were observed in those surface waters.
“Today’s settlement holds XTO accountable for a previous violation of the Clean Water Act and requires operational changes and improved management practices to help ensure the safe and responsible handling of wastewater produced during natural gas exploration and production activities,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “The Justice Department is committed to ensuring that our natural resources are developed in an environmentally responsible manner.”
Under the settlement with the United States, the substantial improvements to XTO’s wastewater management are estimated by the federal government to reduce discharges of total dissolved solids by 264 million pounds over the course of the next three years. These reductions will occur in large part because XTO will increase wastewater recycling and will properly dispose of wastewaters generated by its natural gas activities across the mid-Atlantic region. In addition XTO will implement a region-wide program of operational best management practices which include: secondary containment for tanks used to store wastewater, improved standard operating procedures designed to reduce the risk of a spill, a prohibition on using pits or open-top tanks to store wastewater which will prevent air emissions, remote monitoring of tank volumes to prevent overfilling and spills, and proper signage on all tanks with safety information and a manned, 24-hour emergency phone number.
“The operational improvements required by today’s settlement will help to protect precious surface and drinking water resources in Pennsylvania and West Virginia,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “EPA continues to push for responsible development of domestic sources of energy and to insist that companies play by the rules that protect public health.”
“This consent decree establishes a program of best practices that should be a model for the industry and, if followed, will give a level of assurance to the people of the Commonwealth that their waters will be protected. This settlement is in the long-term best interest of the taxpayers, the industry, and our children,” stated Peter J. Smith, U.S. Attorney for the Middle District of Pennsylvania.
Untreated discharges of wastewaters from natural gas exploration and production activities typically contain high levels of total dissolved solids and other pollutants and can adversely impact fresh water aquatic life and drinking water quality.
The consent decree, lodged in the Middle District of Pennsylvania, is subject to a 30-day public comment period and court approval. The consent decree is available for review at www.justice.gov/enrd/Consent_Decrees.htmlMore information about the settlement: http://www2.epa.gov/enforcement/xto-energy-inc-settlement
More information about EPA Region III’s activities related to natural gas extraction: http://www.epa.gov/region3/marcellus_shale/
IF YOU HAVE QUESTIONS, PLEASE CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
US Army Sergeant Pleads Guilty in Georgia to Stealing <br /> Identity Information from US Army Computer SystemRead the Press Release
Ammie Brothers, 29, of Columbus, Ga., a sergeant in the U.S. Army, pleaded guilty today to unlawfully obtaining personal information from the U.S. Army’s Army Knowledge Online computer system.
The guilty plea was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of Virginia Neil H. MacBride; U.S. Attorney for the Middle District of Georgia Michael J. Moore; and Director Daniel T. Andrews of the U.S. Army Criminal Investigation Command’s Computer Crime Investigative Unit.
Brothers pleaded guilty before U. S. District Judge Clay Land in Columbus, Ga., to one count of unauthorized access to information from a U.S. Army computer system. She was charged on Feb. 14, 2013, in a five-count indictment returned by a federal grand jury in Alexandria, Va.
In a statement of facts filed with the plea agreement, Brothers admitted that between April 24, 2009, and Oct. 5, 2011, she repeatedly and intentionally accessed two victims’ Army Knowledge Online accounts, which contain personnel files for members of the armed services. Brothers initially gained access by calling the Army Knowledge Online help desk in the Eastern District of Virginia and providing the victims’ Social Security numbers and dates of birth in order to obtain temporary passwords.
When law enforcement searched Brothers’s home in Columbus, they recovered numerous documents printed from the Army Knowledge Online system that contained victims’ Social Security numbers, bank account numbers and employment history, including the Social Security number of one minor child. Brothers admitted to law enforcement that, in addition to illegally accessing the victims’ Army Knowledge Online accounts, she regularly harassed the victims by telephone and accessed several credit card accounts belonging to one victim, and in one case authorized charges without the victim’s knowledge or consent.
At sentencing, scheduled for Oct. 24, 2013, Brothers faces a maximum penalty of five years in prison.
This case was investigated by the Computer Crime Investigative Unit of U.S. Army Criminal Investigation Command.
The case is being prosecuted by Trial Attorney Peter V. Roman of the Justice Department’s Computer Crime and Intellectual Property Section, Assistant U.S. Attorney Lindsay Kelly of the Eastern District of Virginia and Assistant U.S. Attorney Crawford L. Seals of the Middle District of Georgia.US Army Sergeant Pleads Guilty in Georgia to Stealing Identity Information from US Army Computer SystemRead the Press Release
WASHINGTON – Ammie Brothers, 29, of Columbus, Ga., a sergeant in the U.S. Army, pleaded guilty today to unlawfully obtaining personal information from the U.S. Army’s Army Knowledge Online computer system.
The guilty plea was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of Virginia Neil H. MacBride; U.S. Attorney for the Middle District of Georgia Michael J. Moore; and Director Daniel T. Andrews of the U.S. Army Criminal Investigation Command’s Computer Crime Investigative Unit.
Brothers pleaded guilty before U. S. District Judge Clay Land in Columbus, Ga., to one count of unauthorized access to information from a U.S. Army computer system. She was charged on Feb. 14, 2013, in a five-count indictment returned by a federal grand jury in Alexandria, Va.
In a statement of facts filed with the plea agreement, Brothers admitted that between April 24, 2009, and Oct. 5, 2011, she repeatedly and intentionally accessed two victims’ Army Knowledge Online accounts, which contain personnel files for members of the armed services. Brothers initially gained access by calling the Army Knowledge Online help desk in the Eastern District of Virginia and providing the victims’ Social Security numbers and dates of birth in order to obtain temporary passwords.
When law enforcement searched Brothers’s home in Columbus, they recovered numerous documents printed from the Army Knowledge Online system that contained victims’ Social Security numbers, bank account numbers and employment history, including the Social Security number of one minor child. Brothers admitted to law enforcement that, in addition to illegally accessing the victims’ Army Knowledge Online accounts, she regularly harassed the victims by telephone and accessed several credit card accounts belonging to one victim, and in one case authorized charges without the victim’s knowledge or consent.
At sentencing, scheduled for Oct. 24, 2013, Brothers faces a maximum penalty of five years in prison.
This case was investigated by the Computer Crime Investigative Unit of U.S. Army Criminal Investigation Command.
The case is being prosecuted by Trial Attorney Peter V. Roman of the Justice Department’s Computer Crime and Intellectual Property Section, Assistant U.S. Attorney Lindsay Kelly of the Eastern District of Virginia and Assistant U.S. Attorney Crawford L. Seals of the Middle District of Georgia.
Inquiries regarding the case should be directed to The Office Of Public Affairs at 202-514-2007 or Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
U.S. Postal Service Letter Carrier Indicted for Allegedly Destroying MailRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence on Wednesday returned an indictment charging Matteo Morelli, 34, of Warwick, a U.S. Postal Service (USPS) letter carrier, with one count of delay or destruction of mail by a Postal Service officer or employee. It is alleged in court documents that Morelli discarded more than 1,000 pieces of mail that were addressed to individuals and business in East Greenwich and North Kingstown.
Morelli’s indictment was announced by United States Attorney Peter F. Neronha and Rafael Medina, Special Agent in Charge of the United States Postal Service, Office of Inspector General (USPS OIG), Northeast Area Field Office.
According to an affidavit in support of a criminal complaint filed previously with the court, in June 2013, the Postmaster for East Greenwich received complaints that mail sent via the U.S. Postal Service had not been delivered to intended recipients on routes assigned to Morelli. The Postmaster also received complaints of mail not reaching intended recipients along routes in North Kingstown assigned to Morelli.
According to the affidavit, following an interview with Morelli, USPS OIG agents discovered more than 1,000 pieces of mail allegedly discarded by Morelli inside a dumpster behind a school in Warwick.
Morelli is scheduled to be arraigned on the indictment on July 23, 2013.An indictment and a criminal complaint are merely allegations and are not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Delay or destruction of mail by a Postal Service officer or employee is punishable by up to 5 years in federal prison and up to 3 years of supervised release.
The case is being prosecuted by Assistant U.S. Attorney Zechariah Chafee
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]U.S. Attorney Barry Grissom to Speak at Event in Honor of ADARead the Press Release
HUTCHINSON, KAN. – U.S. Attorney Barry Grissom will speak tonight at an event in Hutchinson to honor the Americans With Disabilities Act.
Grissom will be the featured speaker at the Americans With Disabilities Act (ADA) celebration at 7 p.m. today at George Pyle Park, 100 E. Avenue B. The event is being sponsored by the Prairie Independent Living Resource Center, Inc.
“The ADA has opened millions of doors for people with disabilities in this nation,” Grissom said. “It has revolutionized the way people think about people with disabilities.”
The U.S. Justice Department works to achieve equal opportunity for people with disabilities by implementing and enforcing the Americans With Disabilities Act. For more information about the event contact Roger Frishenmeyer at 620-474-3600.
Two Grey Hills, N.M., Man Sentenced to Thirty-Seven Months in Federal Prison for Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Erick McDonald, 21, an enrolled member of the Navajo Nation who resides in Two Grey Hills, N.M., was sentenced yesterday afternoon to 37 months in federal prison followed by seven years of supervised release for his child sexual abuse conviction. McDonald also will be required to register as a sex offender.
McDonald pleaded guilty on March 4, 2013, to a two-count information charging him with abusive sexual contact with a six-year-old Indian child and a 12-year-old Indian child on Sept. 19, 2012. In entering his guilty plea, McDonald admitted that he intentionally touched the genitals and other body parts of the two victims. Court records reflect that McDonald’s unlawful conduct occurred in a residence on the Navajo Indian Reservation.
This case was investigated by the Albuquerque and the Farmington offices of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
Two from Waubay Area Indicted on Assault and Robbery ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that two individuals from the Waubay, South Dakota, area have been indicted by a federal grand jury for Assault with Intent to Commit Murder, Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Robbery.
Beverly A. Gill, age 43, and Tyler G. Sullivan, age 29, were indicted by a federal grand jury on June 18, 2013. Gill appeared before U.S. Magistrate Judge William Gerdes on June 24, 2013, and Sullivan appeared before Judge Gerdes on July 16, 2013. Both pled not guilty to the indictment.
The maximum penalty upon conviction is up to 20 years in custody, a $250,000 fine, or both; 3 years of supervised release and an additional 2 years upon revocation; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely an accusation and Gill and Sullivan are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Day County Sheriff’s Office and the Federal Bureau of Investigation. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case.
Gill was released on bond, and Sullivan was remanded to the custody of the U.S. Marshal. A trial date has not been set.Two Area Women Sentenced for Filing False Federal Income Tax ReturnsRead the Press Release
Gemarian Douglas, 38, of Alorton, Illinois, and Anaya Bluiett, 26, of St. Louis, Missouri, were each sentenced for the offense of Filing False Federal Income Tax Returns, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Gemarian Douglas was sentenced to serve 2 months in prison, 1 year supervised release, pay a $5,000 fine and $4,911 in restitution. Anaya Bluiett was sentenced to serve 6 months home detention and pay a $1,000 fine as a condition of 5 years of probation and to pay restitution totaling $10,405.
Anaya Bluiett had false and fraudulent 2008, 2009 and 2010 federal income tax returns prepared by Prime Time Tax Services. Gemarian Douglas had filed a false and fraudulent 2009 federal income tax return. Additionally she had filed a false 2001 and 2002 federal tax return. Delaun Leflore and Carey Herron owned and operated Prime Time Tax Services (PTTS) located in Shiloh, Illinois. During the 2008-2011 filing seasons, Leflore and Herron used electronic software to prepare and file tax returns and they typically applied for refund anticipation loans. Leflore and Herron conspired together and with their clients to prepare false tax returns and claim fraudulent tax refunds. To accomplish this scheme, Leflore and Herron created false and fraudulent Schedule C income and expenses. The purpose of creating the false income was to maximize the earned income credit and other credits which generated large tax refunds. While meeting with their clients, Leflore and Herron discussed how to receive more money back by creating self-employment income. The clients agreed to participate in the scheme in order to receive a larger tax refund. Typically, the clients were referred to Leflore and Herron and visited the tax preparation business knowing they would file fraudulent tax returns. As part of the scheme, the clients were required to pay an extra cash fee to Leflore or Herron from the tax refund received. This amount was generally $500 in cash. This amount was in addition to the tax preparation fee which was automatically deducted from the tax refund by the bank processing the refund anticipation loan (RAL). Following the receipt of the RAL check, Leflore, Herron, or another representative of PTTS escorted the clients to a local check-cashing business named Belleville Quick Stop located in Belleville, Illinois. After the client cashed the RAL check, the client immediately gave the $500 in cash to Leflore, Herron, or another representative of Prime Time. Leflore and Herrron have already been prosecuted and are serving their prison sentences.
The prosecution is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations, and was handled by Assistant U.S. Attorney Norman R. Smith.
To report criminal tax fraud, call I.R.S. Criminal Investigations at (618) 622-2160, or send the information to the Internal Revenue Service, Fresno, CA 93888.
Three Involved in the Kidnapping and Murder of Atlantic City Woman Plead GuiltyRead the Press Release
CAMDEN, N.J. – Three Atlantic City, N.J., residents today admitted their roles in the kidnapping and death of a 20-year-old Atlantic City woman, U.S. Attorney Paul J. Fishman announced.
Shameria Smith, 26, Aziz Sanders, 20, and Deshawn Hicks, 21, each pleaded guilty before U.S. District Judge Joseph H. Rodriguez to separate, one-count informations charging them with use of a firearm, and aiding and abetting the use of a firearm, in furtherance of a crime of violence – specifically, the Hobbs Act robbery and kidnapping that resulted in the death of Nadirah Ruffin.
According to documents filed in this case and statements made in court:On March 23, 2011, D.H. met with Isiah Ruffin (no relation to the victim) in the courtyard area of a housing complex on North Maryland Avenue, a section of Atlantic City known as “Back Maryland,” to talk to Isiah Ruffin about a dispute between Isiah Ruffin and Victim One. After a brief conversation, D.H. viciously assaulted Isiah Ruffin, knocking Isiah Ruffin unconscious and robbing him of cash. When Isiah Ruffin regained consciousness, D.H. assaulted Isiah Ruffin again. As a result of the assault, Isiah Ruffin was treated at the Atlantic City Medical Center for a possible concussion and facial lacerations. After Isiah Ruffin was released from the hospital, Smith and Sanders visited Isiah Ruffin, during which time Isiah Ruffin told Smith that D.H. had assaulted him.
To retaliate, Smith planned to enter Victim One’s house and assault and rob Victim One of illegal drugs and money. Sanders agreed to help Smith execute her plan and recruited Hicks to participate. Smith supplied the gun, duct-tape and handcuffs.
On March 26, 2011, Smith, Sanders, and Hicks entered Victim One’s house and duct-taped Victim One and four other victims, including Nadirah Ruffin, who were present. While in the house, Sanders and Hicks took money from Victim One, some of which Victim One had earned from selling illegal drugs. They took money from another victim, as well as marijuana that the victim was planning to sell. Sanders and Hicks admitted to taking more than $500 dollars and 50 bags of marijuana from the house.
During the robbery, Nadirah Ruffin recognized Smith’s voice. Smith ordered Sanders to punch Nadirah Ruffin. After Sanders hit Nadirah Ruffin, Smith punched her because she did not think Sanders had hit her hard enough. As the three defendants were leaving the residence, Smith told Sanders and Hicks to take Nadirah Ruffin from the residence. Smith, Sanders and Hicks then placed Nadirah Ruffin into a green van. They drove to the Clementon area and eventually to Philadelphia. Smith said that because she was a mother she could not kill Nadirah Ruffin. Smith placed the gun near Sanders and told him that they were not leaving until someone else killed Nadirah Ruffin. Sanders and Hicks took Nadirah Ruffin to the banks of the Schuylkill River, where Sanders shot her in the head, killing her. Her body was dumped in the river.
The charges to which Smith, Sander and Hicks pleaded guilty carry a maximum potential penalty of life imprisonment and a fine of $250,000. Sentencing for Smith and Sanders is scheduled for Oct. 22, 2013, and Hicks is scheduled for Oct. 23, 2013.
Other defendants
Henry Ruffin and Ronnie Ruffin (no relation to Nadirah Ruffin) both pleaded guilty to failing to tell FBI special agents who interviewed them that they know Smith, Sanders and Hicks were involved in the home invasion and kidnapping. Henry Ruffin is scheduled to be sentenced Sept. 17, 2013, and Ronnie Ruffin is scheduled to be sentenced Sept. 19, 2013.
On April 3, 2012, Isiah Ruffin, pleaded guilty to providing false statements to investigators about the home invasion and kidnapping. He is scheduled to be sentenced Oct. 23, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; the Atlantic County Prosecutor’s Office and the Atlantic City Police Department, for the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorneys Jason M. Richardson and Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden, assisted by Assistant U.S. Attorney David Feder of the U.S. Attorney’s Office Appeals Division in Newark, and Mark Coyne, Chief of the Appeals Division.
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Defense counsel: Smith: Christopher O’Malley, Esq.
Sanders: Edward Borden Esq. and Carl J. Herman Esq.
Hicks: Michael Huff Esq. and David Glazer Esq.
Henry Ruffin: Richard Sparaco Esq.
Ronnie Ruffin: Stanley O. King Esq.
Isiah Ruffin: J. Michael Farrell Esq.Smith, Shameria Information
Sanders, Aziz Information
Hicks, Deshawn InformationThree Illegal Aliens Sentenced This Week for Violating Deportation OrdersRead the Press Release
ALEXANDRIA/LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that three illegal aliens were sentenced this week in U.S. District Court for violating deportation orders multiple times.
EL SALVADOR CITIZEN SENTENCED FOR ORDER NON-COMPLIANCE
Manuel Rivas, 45, of El Salvador, was sentenced Wednesday by U.S. District Judge Dee D. Drell in Alexandria, to six years in prison and three years of supervised release for two counts of resisting his deportation. According to evidence presented at the trial, Immigration and Customs Enforcement agents arrested Rivas on July 11, 2011, and he was issued an administrative order for removal because he was an alien convicted of a felony. Rivas refused to fill out the necessary paperwork for his request for travel documentation from El Salvador on July 3, 2012 and Aug. 16, 2012. A jury found Rivas guilty on April 5, 2013 after a two-day trial.
The Immigration and Customs Enforcement - Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorney Earl M. Campbell and Special Assistant U.S. Attorney Seiji Ohashi prosecuted the case.
MEXICAN CITIZEN SENTENCED TO 39 MONTHS IN PRISON FOR RE-ENTRY
Gilberto Del Rio Herrera, 40, of Mexico, was sentenced Monday by U.S. District Judge Richard T. Haik in Lafayette, to 21 months in prison for illegal re-entry into the United States and 18 months in prison due to revocation of probation for an illegal re-entry charge from the Southern District of Texas, Houston Division. According to evidence presented at the guilty plea, Louisiana State Police arrested Herrera on Dec. 2, 2012 after a vehicle accident took place in Lafayette Parish. He was charged with hit and run driving, driving while intoxicated, improper lane usage, and possession of an alcoholic beverage in an open container. A criminal history check conducted by the Louisiana State Police revealed that Herrera had been previously deported to Mexico and had last entered the United States in August of 2012 at Tijuana, Mexico. It was also discovered that Herrera had been deported to Mexico four times and had a criminal record. His record included a 1999 conviction for possession of cocaine in Harris County Texas.
The U.S. Immigration and Customs Enforcement (ICE), Louisiana State Police and the Lafayette Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel prosecuted the case.
MEXICAN CITIZEN RECEIVES 16 MONTHS IN PRISON FOR ILLEGAL RE-ENTRY
David Cruz-Perez, 45, of Mexico, was sentenced Monday by U.S. District Judge Richard T. Haik in Lafayette, to 16 months in prison for illegal re-entry into the United States. According to evidence presented at the guilty plea, the Iberia Parish Sheriff’s Office arrested Cruz-Perez for aggravated second degree battery on Sept. 29, 2012. The defendant has a criminal history and was previously removed on Aug. 19, 2004. He pleaded guilty to the illegal re-entry charge on March 11, 2013.
The U.S. Immigration and Customs Enforcement (ICE) and the Iberia Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
South Jersey Doctor Sentenced to Two Years in Prison for Fraud Scheme Involving Home Health Care for Elderly PatientsRead the Press Release
Doctor Made More Than Half a Million Dollars Illegally
TRENTON, N.J. – A doctor who was the owner and founder of Visiting Physicians of South Jersey (VPA) – a Hammonton, N.J., provider of home-based physician services for seniors – was sentenced today to 24 months in prison for charging lengthy visits to elderly patients that they did not receive, U.S. Attorney Paul J. Fishman announced.
Lori Reaves, 52, of Waterford Works, N.J., previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging her with one count of health care fraud. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Reaves admitted lying in Medicare billings about the amount of face-to-face time she spent with patients, which led to her receiving at least $511,068 in criminal profits. Reaves was the highest billing home care provider among the more than 24,000 doctors in New Jersey from Jan. 1, 2008, through Oct. 14, 2011.
VPA provided home-based physician health care for elderly and homebound patients in New Jersey, offering services throughout South Jersey. As part of her responsibilities at VPA, Reaves was responsible for Medicare billings as a Medicare-approved provider. The claim submitted by the health care provider requires a physician to state a diagnosis and provide a procedure code – called a Current Procedural Technology (CPT) code – identifying services rendered. Medicare regulations require that each provider certify that the services rendered were medically necessary and were furnished by that provider. A warning at the bottom of the form specifically states that any false claims or statements in relation to the submission of a claim for reimbursement are prosecutable under federal or state law.
In most instances during the relevant time period, Reaves submitted forms that falsely claimed she had provided prolonged service visits to her patients in order to induce Medicare to make payments to her that were significantly higher than the payments she should have received. She routinely billed Medicare using codes that would have required her – under Medicare regulations and depending on the corresponding service – to spend between 60 and 150 minutes with a patient. Many of the claims Reaves submitted would have required her to spend a minimum of 2.5 hours of face-to-face time with her elderly clients, when she actually spent far less. As a result, Medicare reimbursed Reaves more than $511,068 for the fraudulent prolonged service visits Reaves claimed to have made.
In addition to the prison term, Judge Wolfson sentenced Reaves to three years of supervised release. In addition to Reaves forfeiture of $511,068, Judge Wolfson ordered Reaves to pay restitution of $511,068 and pay a fine of $5,000.
U.S. Attorney Fishman credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Aaron T. Ford, and special agents of the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Tom F. O’Donnell of the New York Regional Office, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorneys Deborah J. Gannett and R. David Walk Jr. of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
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Defense counsel: Rocco Cipparone Jr. Esq., Haddon Heights, N.J.Slidell Tax Preparer, John Labee, Charged in 13-count IndictmentRead the Press Release
JOHN LABEE, age 35, a resident of Slidell, Louisiana, was charged today in a thirteen-count Indictment with nine counts of assisting in the preparation of false tax documents, two counts of making false statements on his own tax returns, one count of attempted mail fraud, and one count of lying to a federal Grand Jury, announced United States Attorney Dana J. Boente.
According to the Indictment, beginning in about 2005, LABEE owned and operated two tax preparation businesses in Slidell, IP Financial Services, Inc. and Milennium [sic] Bookkeeping Services. An investigation revealed between tax years 2008 and 2010, LABEE regularly claimed false deductions and claimed false federal tax withholdings for his clients to generate large refunds to which they were not entitled. LABEE also failed to report his income from his tax preparation business and falsified the amount of federal tax withholdings on his own tax returns that resulted in LABEE receiving refunds to which he was not entitled.
The Indictment also alleges that LABEE filed a loss claim to the Gulf Coast Claims Facility (GCCF) seeking over $958,000 in compensation for losses he claimed IP Financial Services suffered as a result of the Deepwater Horizon oil spill incident. To support his claim, LABEE submitted false tax records that were not true and had never been filed with the IRS.
Lastly, the Indictment alleges that LABEE lied when he testified under oath on
March 14, 2013, before the Grand Jury that he had not prepared any tax returns in 2013 other than his own. The Indictment alleges that LABEE had prepared the tax return of at least one other individual.If convicted, LABEE faces a maximum term of three years imprisonment each as to Counts 1 through 11; 20 years as to Count 12; and five years as to Count 13, for a maximum total sentence of 58 years in prison, followed by up to three years of supervised release, and a $250,000 fine.
United States Attorney Boente reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.The case is being investigated by agents from the Internal Revenue Service- Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorney Jordan Ginsberg.
(Download Indictment )
Six Individuals Sentenced for Their Roles in Large, Multi-state Identity Theft RingRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, two individuals were sentenced for their roles in a large, multi-state, identity theft ring. United States District Court Judge Paul A. Magnuson sentenced Joel Delano Powell III, age 20, of Minneapolis, to 42 months in prison; and Trey Jeremiah Powell, age 20, of Brooklyn Park, to 57 months in prison. Both had earlier pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft.
Earlier this week, Joel Delano Powell, Jr., age 47, of St. Louis Park, was sentenced to 300 months in prison. Powell, Jr. was convicted following a jury trial in August and September 2012 of one count of conspiracy to commit bank fraud, seven counts of aiding and abetting bank fraud, and five counts of aggravated identity theft.
On Wednesday, Judge Magnuson sentenced Elston Edwards Sharps, age 47, of Minneapolis, to 32 months in prison; Kevin Terrell Martin, age 46, of St. Paul, to 124 months in prison; and Steven Lavell Maxwell, age 44, also of Minneapolis, to 140 months in prison. All three had earlier pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Seventeen other defendants have been sentenced in this case thus far, while nine more await sentencing.
These individuals, along with over 100 others, were involved in a conspiracy from 2006 through December of 2011 to defraud banks, bank customers, and businesses. The co-conspirators used victim information to create counterfeit checks and false identification documents to conduct fraudulent transactions at retail establishments where expensive merchandise was purchased and returned for cash. At banks, the conspirators posed as customers and withdrew money from victims’ bank accounts. The members of the conspiracy conducted these fraudulent transactions throughout Minnesota and in at least 13 other states. Victim information was obtained by members of the conspiracy through multiple sources, including from individuals who stole victim information from their places of employment, from individuals employed at area banks, from those who stole the information from the mail, during vehicle break-ins, and business burglaries, among other sources.
Following sentencing, Patrick Henry, the head of the Minnesota Financial Crimes Task Force, said, “This investigation came together as a result of the partnerships between agencies and the extraordinary efforts of all involved. The Minnesota Financial Crimes Task Force led this investigation, but this is an example of successful collaboration of local, state, and federal criminal justice agencies.”
Kelly R. Jackson, Special Agent in Charge of IRS Criminal Investigations, St. Paul Field Office, which also participated in the investigation, said, “Individuals who commit identity fraud of this magnitude deserve to be punished to the fullest extent of the law. These individuals caused immeasurable hardship to innocent victims. IRS Criminal Investigations remains committed to the pursuit of identity theft, and together with our law enforcement partners and the U.S. Attorney’s Office, we will hold those who engage in similar behavior fully accountable.”
In a related case, five individuals were charged with conspiracy to commit bank fraud, bank fraud and aggravated identity theft. Jemall Ronta Williams, Jerome Davis, Jr., Tierra Samantha Catrina House, and Shanell Collette Brewer each pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Gordon Lamarr Moore was convicted in April 2013 following a jury trial. During the trial, Moore fled and became a fugitive. On July 8, 2013, he was arrested in at a hotel in Milwaukee, Wisconsin. Moore attempted to again flee, but was ultimately apprehended without incident.
These cases resulted from an investigation conducted by the Minnesota Financial Crimes Task Force, the U.S. Postal Inspection Service, and the Internal Revenue Service-Criminal Investigations. They were prosecuted by Assistant U.S. Attorney Karen B. Schommer and Assistant U.S. Attorney Michelle E. Jones.
The Financial Crimes Task Force was established pursuant to state law and is comprised of local, state, and federal law enforcement investigators dedicated to combating the growing problem of cross-jurisdictional financial crimes. The task force, overseen by an advisory board also created under state law, serves the entire District of Minnesota, presenting its cases to county or federal prosecutors, as appropriate.
The task force and the Minnesota U.S. Attorney’s Office want to remind people to protect themselves from identity theft. For more information, visit http://www.stopfraud.gov/protect-identity.html.
For more information on how to avoid becoming a victim of identity theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/IdentityTheft.aspx . The IRS-Criminal Investigations also urges citizens to review the Taxpayer Guide to Identity Theft, which can be found at http://www.irs.gov.
For tips on how to prevent mail theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/MailTheft.aspx.Six Colombian Nationals Charged with Murder of DEA AgentRead the Press Release
Six Colombian nationals were indicted today by a federal grand jury in the Eastern District of Virginia for the kidnapping and murder of Drug Enforcement Administration (DEA) Special Agent James Terry Watson.
“Special Agent Watson was a brave public servant who dedicated his life to protecting the country he loved. He was a hero, in every sense of the word, who was taken from us far too suddenly and far too soon," said Attorney General Eric Holder. “With today's arrests, we take an important step towards ensuring that those allegedly responsible for his senseless murder are brought to justice. We also send an unmistakable message to all who commit acts of violence against America's law enforcement professionals: no matter who you are or where you live, we will do everything in our power to hold you accountable to the fullest extent of the law.”
Gerardo Figueroa Sepulveda, 38; Omar Fabian Valdes Gualtero, 27; Edgar Javier Bello Murillo, 26; Hector Leonardo Lopez, 23; Julio Estiven Gracia Ramierez, 30; and Andrés Alvaro Oviedo-Garcia, 21, were each charged with two counts of second degree murder, one count of kidnapping and one count of conspiracy to kidnap. Oviedo-Garcia was also charged with two counts of assault.
Additionally, the grand jury indicted Wilson Daniel Peralta-Bocachica, 30, also a Colombian national, for his alleged efforts to destroy evidence associated with the murder of Special Agent Watson.
According to the indictment, Figueroa, Valdes, Bello, Lopez, Gracia and Oviedo-Garcia were part of a kidnapping and robbery conspiracy that utilized taxi cabs in Bogota, Colombia, to lure victims into a position where they could be attacked and robbed. Once an intended victim entered a taxi cab, the driver of the taxi cab would signal other conspirators to commence the robbery and kidnapping operation.
The indictment alleges that on June 20, 2013, while he was working for the U.S. Mission in Colombia, Special Agent Watson entered a taxi cab operated by one of the defendants. Special Agent Watson was then allegedly attacked by two other defendants – one who stunned Special Agent Watson with a stun gun and another who stabbed Special Agent Watson with a knife, resulting in his death.
The charges were announced by Attorney General Holder; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Neil H. MacBride of the Eastern District of Virginia; Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office; Special Agent in Charge Derek S. Maltz of the Drug Enforcement Administration’s Special Operations Division; and Director Gregory B. Starr of the Diplomatic Security Service for the U.S. Department of State.
This case is being investigated by the FBI, DEA and Diplomatic Security Service, in close cooperation with Colombian authorities, and with assistance from INTERPOL and the Justice Department’s Office of International Affairs. Assistant U.S. Attorney Michael P. Ben’Ary from the U.S. Attorney’s Office for the Eastern District of Virginia and Special Counsel Stacey Luck and Trial Attorney Christine Duey from the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case on behalf of the United States. The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogota Metropolitan Police and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
Sentences for July 11 - 17, 2013Read the Press Release
Uriel Aguinaga-Ortiz, 33, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on July 17, 2013, for illegal re-entry of a previously deported alien into the United States. Aguinaga-Ortiz was arrested in Basin, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Juan Jose Medellin-Tovar, 26, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on July 17, 2013, for illegal re-entry of a previously deported alien into the United States. Medellin-Tovar was arrested in Wheatland, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Timothy George Saxton, 53, of Newcastle, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 17, 2013, for possession of child pornography and for receipt of child pornography. Saxton was arrested in Newcastle, Wyoming. He received 60 months imprisonment, to be followed by 20 years of supervised release and was ordered to pay a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Jerom Stuart, 19, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 16, 2013, for receipt of obscene material. Stuart was arrested in Rock Springs, Wyoming. He was ordered to serve five years of probation. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Kevin Paul Johnson, 38, of Gillette, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 12, 2013, for being a felon in possession of a firearm. Johnson was arrested in Gillette, Wyoming. He received 51 months imprisonment, to be followed by three years of supervised release and was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Gillette Police Department, U.S. Probation Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Corey Allen Donaldson, 40 of Victoria Province, Australia, was sentenced by Federal District Court Judge Alan B. Johnson on July 11, 2013, for bank robbery. Donaldson was arrested in Clinton, Utah. He received 70 months imprisonment, to be followed by three years of supervised release and was ordered to pay a $100.00 special assessment and restitution in the amount of $140,750.00. This case was investigated by the Federal Bureau of Investigation.