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3 July 2013
Fairmont City Man Sentenced for Role in Cocaine ConspiracyRead the Press Release
A Fairmont City man who pled guilty on March 29, 2013, in federal court to Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine for being a member of a large cocaine distribution organization, was sentenced to prison on July 3, 2013, the United States for the Southern District of Illinois, Stephen R. Wigginton, announced today. Antonio O. Escobar, 27, was sentenced to 120 months imprisonment followed by five years of supervised release. Escobar was also ordered to pay a fine of $500 and a special assessment of $200.
To date, twenty-eight other members of the organization have been convicted and sentenced. One individual who was indicted at the same time as Escobar has entered a plea of guilty and is awaiting sentencing, which is currently scheduled for July 19, 2013.
Evidence in support of the indictment was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), U.S. Marshal Service, the Granite City Police Department, Fairmont City Police Department, Collinsville Police Department, Fairview Heights Police Department, Caseyville Police Department, Pontoon Beach Police Department, Park Hills (Missouri) Police Department, the St. Clair County Sheriff’s Department, and the Illinois State Police. This case is assigned to Assistant United States Attorney Randy G. Massey.
Doctor Sentenced in White Plains Federal Court to over 3 Years in Prison for Distributing OxycodoneRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that FELIX RODRIGUEZ, a licensed physician in Manhattan, was sentenced to a term of 37 months’ imprisonment by U.S. District Judge Kenneth M. Karas in White Plains federal court for distributing Oxycodone, a Schedule II controlled substance.
Manhattan U.S. Attorney Preet Bharara stated: “The abuse of diverted prescription pain medication is the fastest growing drug problem in our country, now killing more people than illegal street drugs like heroin and cocaine combined. We cannot tolerate the fueling of this epidemic by crooked doctors who flout their oath to care for, not harm, their patients. The sentence imposed today sends a strong message to those doctors engaged in the criminal distribution of pain killers that they too, like dealers of illegal street drugs, will feel full force of the law. We will continue to work with federal, state, and local law enforcement organizations to eradicate this nationwide problem harming so many in our communities.”
According to documents filed in White Plains federal court in this case:
From May 2010 through February 2011, RODRIGUEZ, who was a licensed physician, working out of a medical office in Manhattan, provided Oxycodone prescriptions made out in the names of various other individuals, including individuals who RODRIGUEZ never met or examined to an individual who then used these prescriptions to obtain the drugs for illegal distribution. When RODRIGUEZ wrote these prescriptions, he knew that by doing so he was violating generally accepted medical practice. Oxycodone is a powerful painkiller with a high potential for addiction and abuse.
In addition to the term of imprisonment imposed, RODRIGUEZ, 52, of the Bronx, New York, was sentenced to three years of supervised release.
Mr. Bharara praised the investigative efforts of the U.S. Drug Enforcement Administration, the Westchester County District Attorney’s Office, the Westchester County Department of Public Safety, the U.S. Marshals Service, the New York State Police, the Yonkers Police Department, and the Mount Vernon Police Department.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Jeffrey Alberts and Abigail S. Kurland are in charge of the prosecution.
Doctor Sentenced in White Plains Federal Court to over 3 Years in Prison for Distributing OxycodoneRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that FELIX RODRIGUEZ, a licensed physician in Manhattan, was sentenced to a term of 37 months’ imprisonment by U.S. District Judge Kenneth M. Karas in White Plains federal court for distributing Oxycodone, a Schedule II controlled substance.
Manhattan U.S. Attorney Preet Bharara stated: “The abuse of diverted prescription pain medication is the fastest growing drug problem in our country, now killing more people than illegal street drugs like heroin and cocaine combined. We cannot tolerate the fueling of this epidemic by crooked doctors who flout their oath to care for, not harm, their patients. The sentence imposed today sends a strong message to those doctors engaged in the criminal distribution of pain killers that they too, like dealers of illegal street drugs, will feel full force of the law. We will continue to work with federal, state, and local law enforcement organizations to eradicate this nationwide problem harming so many in our communities.”
According to documents filed in White Plains federal court in this case:
From May 2010 through February 2011, RODRIGUEZ, who was a licensed physician, working out of a medical office in Manhattan, provided Oxycodone prescriptions made out in the names of various other individuals, including individuals who RODRIGUEZ never met or examined to an individual who then used these prescriptions to obtain the drugs for illegal distribution. When RODRIGUEZ wrote these prescriptions, he knew that by doing so he was violating generally accepted medical practice. Oxycodone is a powerful painkiller with a high potential for addiction and abuse.
In addition to the term of imprisonment imposed, RODRIGUEZ, 52, of the Bronx, New York, was sentenced to three years of supervised release.
Mr. Bharara praised the investigative efforts of the U.S. Drug Enforcement Administration, the Westchester County District Attorney’s Office, the Westchester County Department of Public Safety, the U.S. Marshals Service, the New York State Police, the Yonkers Police Department, and the Mount Vernon Police Department.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Jeffrey Alberts and Abigail S. Kurland are in charge of the prosecution.
District Man Found Guilty of Second-Degree Murder While Armed in 2011 Slaying in Northwest Washington-Defendant Stabbed Victim in the Neck-Read the Press Release
FOR IMMEDIATE RELEASE
Wedneday, July 3, 2013WASHINGTON Devon Holmes, 30, also known as “Jamaica,” of Washington D.C., was found guilty by a jury today of second-degree murder while armed for the August 2011 slaying of a man in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Ronna L. Beck scheduled sentencing for Aug. 30, 2013. Holmes faces a maximum sentence of 40 years in prison
According to the evidence at trial, at about 2:45 a.m. on Aug. 3, 2011, in the area of 8th and Jefferson Streets NW, Holmes slashed the victim, Marcellus T. Bailey, 24, in the neck with a sharp object, causing a gaping wound and loss of blood. Holmes fled the scene. Mr. Bailey died a short while later. The motive for the attack is unknown. Holmes was arrested on Sept. 9, 2011, and has been in custody ever since.
In announcing the verdict, U.S. Attorney Machen commended those who worked on the case from the Metropolitan Police Department (MPD), including detectives, mobile crime technicians, and others. He also expressed appreciation for the work of Special Agent Kevin R. Horan of the FBI’s Cellular Analysis Survey Team (CAST). In addition, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Fern Rhedrick and Mia Beamon; Litigation Support Services Specialists Jeanie Latimore-Brown, Kimberly Smith, Claudia Gutierrez, Joshua Ellen, and Joseph Calvarese; Victim/Witness Advocates Marcia Rinker and Tamara Ince; Victim/Witness Services Supervisor David Foster; Witness Security Specialists M. Laverne Forrest and Michael Hailey; Criminal Investigators Mark Crawford and Christopher Brophy, and Intelligence Research Specialists Zachary McMenamin, Sharon Johnson, and Shannon Alexis.
Finally, U.S. Attorney Machen commended the work of Assistant U.S. Attorneys Robert J. Feitel and Kathryn L. Rakoczy, who prosecuted the case at trial.
13-240Derek Tyson Bellamy Found Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that on July 2, 2013, in Billings, after a federal district court trial before U.S. District Judge Sam E. Haddon, DEREK TYSON BELLAMY, a 31-year-old resident of Billings, was found guilty of being a felon-in-possession of a firearm. Sentencing is set for October 21, 2013. He is currently detained.
Assistant U.S. Attorney Brendan P. McCarthy prosecuted the case for the United States.
BELLAMY faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Denver Man Sentenced to 40 Years in Federal Prison for Distribution of Child PornographyRead the Press Release
DENVER – Jon Christopher Baker, age 33, of Denver, Colorado, was sentenced late yesterday by U.S. District Court Judge John L. Kane to serve 480 months (40 years) in federal prison for the distribution of child pornography, U.S. Attorney John Walsh and FBI Denver Division Special Agent in Charge Thomas Ravenelle announced. This was the maximum possible sentence Baker faced. Following his prison sentence, Baker was sentenced to a lifetime of supervised release. Baker appeared at the sentencing hearing in custody, and was remanded at the conclusion of the hearing.
Baker was first charged by Criminal Complaint on April 27, 2012. He was indicted by a federal grand jury on May 21, 2012. He pled guilty on March 8, 2013. Baker was sentenced on July 2, 2013.
According to court documents, on February 21, 2012, an FBI Special Agent working on an Innocent Images Operations Unit in Maryland in an undercover capacity came across a person using a peer-to-peer file sharing program. The person was sharing two folders containing approximately 23,865 files, or about 99.7 gigabytes. The undercover special agent downloaded approximately 14 image files directly from the person, in addition to approximately 1,016 thumbnail images, the majority of which were indicative of child pornography and erotica. The FBI launched an investigation and determine the person sharing the files had an IP address in Denver, and was named Jon C. Baker. A search of the Colorado Sex Offender Registry revealed one positive result for a Jon C. Baker, also with an address in Denver. The Maryland FBI agent then sent all reports and images to the FBI in Denver for further investigation.
The Denver FBI special agent, working in an undercover capacity, communicated with Baker via the chat feature of the peer-to-peer program. The chat resulted in the undercover agent downloading images containing child pornography from Baker. On April 27, 2012, a search warrant was executed at Baker’s apartment. Agents found a computer and a separate hard drive. A folder on the hard drive associated with the file sharing program Baker was using contained approximately 30,000 images and 1,400 videos of child pornography. Baker was then taken into custody.
Testimony at the sentencing hearing demonstrated that the defendant also solicited at least 25 minor boys online by posing as a minor girl. While posing as a minor girl, the defendant used a chat/webcam site to request that minor boys show their genitalia and/or masturbate on camera. The defendant then recorded the minor boys complying with his requests, and sent those videos to other collectors of child pornography.
The defendant had a prior conviction for Attempted Sexual Exploitation of a Child under Colorado state law, which resulted in an increase in his sentence. The 1998 conviction came out of Colorado Springs, Colorado. Baker’s prior crime occurred when he worked as a babysitter.
“Baker helped countless other people view and download child pornography,” First Assistant U.S. Attorney Bob Troyer said. “He sexually exploited children for his own and others’ gratification. Given his prior conviction for similar conduct, Baker will be in federal prison until he’s in his 70's, and he deserves every minute of it.”
“The sentence handed down represents the FBI’s dedication to pursing those that exploit children,” said FBI Denver Special Agent in Charge Thomas Ravenelle. “Our Innocent Images Task Force is committed to protecting children by identifying and prosecuting sexual predators that victimize them.”
This case was investigated by the Federal Bureau of Investigation’s Innocent Images Task Force.
Baker was prosecuted by Assistant U.S. Attorney Judith Smith, Chief of the Special Prosecutions Section and Assistant U.S. Attorney Alecia Riewerts Wolak, the Project Safe Childhood Coordinator for the U.S. Attorney’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Debt Collection Employee and Son-In-Law Convicted of Sophisticated Identity Theft SchemeRead the Press Release
Montgomery, Alabama - Quentin Collick and Deatrice Williams were each found guilty this week of one count of conspiring to defraud the United States by filing fraudulent federal income tax returns, three counts of wire fraud, and three counts of aggravated identity theft, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. Collick was also convicted of three counts of theft of public money.
Based upon the evidence introduced at trial and court filings, Williams worked for a debt collection company located in Norcross, Georgia. As an employee, Williams had access to names, social security numbers, and dates of birth of individuals who owed medical debts. Williams accessed several files and handwrote the personal information. Williams provided the stolen information to Collick.
Collick and his co-conspirator, Corey Thompson, filed the false tax returns. Corey Thompson previously pleaded guilty and was sentenced to 30 months in jail. In 2011 and 2012, Thompson worked as an independent contractor for a cable company. As an independent contractor, Thompson installed cable and internet access for customers. In order to perpetrate the conspiracy, Thompson used his laptop and his specialized knowledge and equipment to essentially shut down and hijack his customers’ internet service. Thompson and Collick then filed false tax returns using the customers’ hijacked internet address, which made it appear as if the false tax returns were being filed by the customer. Thompson and Collick directed the tax refunds to be placed on pre-paid debit cards. The pre-paid debit cards were intercepted by the United States Postal Service.
“These criminals not only stole innocent people’s identities, but used innocent victims’ internet service to continue this crime,” stated U.S. Attorney Beck. “Taking advantage of innocent victims will not be tolerated. Our office will continue to work to obtain justice for all victims.”
Collick and Williams currently await sentencing. Collick faces a maximum prison term of 106 years, and Williams faces a maximum prison term of 76 years.
This case was investigated by the IRS - Criminal Investigation Division and prosecuted by Tax Division Trial Attorneys Michael Boteler, Jason H. Poole and Alexander Effendi.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Convicted Killer of John Granville Designated a Terrorist; Assets FrozenRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that the U.S. State Department has designated Abd Al-Ra’Ouf Abu Zaid Mohamed Hamza under Executive Order 13224, which targets terrorists and those providing support to terrorists or acts of terrorism. What this means is that all property subject to U.S. jurisdiction in which Hamza has any interest is blocked and any assets he may have under U.S. jurisdiction are frozen. U.S. persons are generally prohibited from engaging in transactions with him.
Hamza and three co-conspirators participated in an armed attack in Khartoum, Sudan on January 1, 2008 which led to the death of U.S. Diplomat John Granville. The Buffalo native was working on democracy and governance programs while serving with the U.S. Agency for International Development (USAID). A U.S. Embassy staff member was also killed in the attack.
Hamza and the three co-conspirators were convicted of murder and sentenced to death in a Sudanese criminal court in 2009. In 2010, the four men escaped from a maximum security prison, killing a Sudanese police officer and wounding another in the process. Shortly thereafter, Hamza was recaptured and is currently in prison in Khartoum.
"As the Office that is leading the criminal investigation into this terrible crime, this is certainly welcome news," said U.S. Attorney Hochul. "This action puts the world on notice that anyone aiding this individual will, along with the defendant, eventually be brought to justice."Cobb County Drug Traffickers Sentenced to Federal PrisonRead the Press Release
Firearms, Drugs, Police Gear, Stun Guns, and Counterfeit Currency Recovered
ATLANTA – Ten members of a drug ring operating out of Cobb County were sentenced to prison on various federal narcotics, firearms, and immigration-related charges.
“Multiple agencies working effectively together dismantled a drug trafficking organization and removed their poisonous drugs, dangerous weapons, and counterfeit money from our streets,” said United States Attorney Sally Quillian Yates. “Now, these defendants have traded their contraband for a combined 141 years, 4 months in federal prison.”
“Drug-related assaults, often times in the form of kidnappings, are one of the many acts of violence committed by drug traffickers seeking to carry out their ruthless mission,” said Harry S. Sommers, Special Agent in Charge of the DEA Atlanta Field Division. The DEA and its law enforcement counterparts are committed to protecting our citizens from drug violence and the scourge of drug abuse. These individuals will now have to pay the consequences of their actions by spending well-deserved time in prison.”
“The GBI is committed to working with our federal law enforcement counterparts to identify and bring to justice those involved in drug trafficking,” said Vernon Keenan, GBI Director.
“ATF’s involvement in securing these sentences is a prime example of the successful use of federal laws to confront, engage and eliminate criminal activity. Criminals must understand that there are serious repercussions for illegal trafficking of narcotics and illegal possession of firearms and that law enforcement will contribute all necessary time and effort to ensure criminals are brought to justice,” said ATF Special Agent in Charge Christopher Shaefer.
“The prison time received by these defendants should serve as a strong warning that tough punishment awaits those who embark on a similar criminal path,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation. “These sentences are the result of hard work and a true team effort.”
“This case illustrates not just the significance of partnerships with state and federal law enforcement agencies, but it also illustrates how criminals still continue to use counterfeiting as a means to fund their criminal activity. The Secret Service and our law enforcement partners will continue to use aggressive and innovative approaches to investigate and arrest these types of criminals,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
According to United States Attorney Yates, the charges and other information presented in court: While investigating a drug trafficking organization operating in metro-Atlanta, agents learned on February 2, 2012, that Nemias Cintora-Gonzalez had devised a plan to assault a fellow drug dealer because of an outstanding $2,700 drug debt. On that date, Nemias Cintora-Gonzalez was overheard speaking to another drug associate about his plans to have four others with him the next morning when he inflicted physical injury on the fellow drug dealer for the purpose of motivating him to repay the debt.
A few hours later, while conducting surveillance of Neimas Cintora-Gonzalez’s apartment located in Smyrna, agents observed Edgar Cintora-Gonzalez transferring two large bags from the trunk of a white Honda Accord, registered to an alias of Nemias Cintora-Gonzalez, into the trunk of a white Suzuki Verona, registered to the wife of Israel Edgardo Revera-Pacheco. At approximately 10:45 p.m. that same evening, agents executed a federal search warrant at the apartment, encountering and arresting Jorge Armando-Reyes, Nemias Cintora-Gonzalez, Edgar Cintora-Gonzalez, Victor Hugo Morales-Avila, Israel Edgardo Revera-Pacheco, and Brenda Perez.
During the search of the apartment and the Suzuki Verona, agents seized:
•thirteen handguns (including several semi-automatic firearms)
•four assault rifles
•numerous magazines and ammunition for the weapons
•methamphetamine
•cocaine
•two stun guns
•two large crowbars
•one large bolt cutter
•police gear
•a black ski mask, black turtle neck shirt, and black gloves
•over $11,000 in counterfeit U.S. Currency
•drug packaging materials
•zip ties
•two bulletproof vests
During a search of cellular telephones recovered in the apartment, agents found photographs of Armando-Reyes and Morales-Avila posing with assault weapons and police gear.
On February 23, 2012, federal agents arrested Jose Vazquez Estrada at his residence in Marietta. Estrada was a significant drug customer of Nemias Cintora-Gonzalez. During a consent search of Estrada’s apartment, agents located over 909 grams of methamphetamine on dinner plates in the kitchen.
Agents arrested Pedro Gutierrez Valdiviez on April 18, 2012, who was Estrada’s drug partner, after he attempted to sell six ounces of methamphetamine to an undercover agent in a Marietta Wal-Mart parking lot.
Maria Yobal Perez was arrested on May 16, 2012, at her Marietta residence. Yobal Perez was overheard conducting methamphetamine transactions on behalf of her husband, Alvaro Carraza Echeverria, who was serving a 30 year sentence in a Georgia state correctional facility for trafficking in methamphetamine. Echeverria was overheard brokering methamphetamine deals from the correctional facility using an illegally smuggled cellular telephone.After being indicted, eight defendants pleaded guilty, and Nemias Cintora-Gonzalez and Jorge Armando-Reyes were convicted after a jury trial. All defendants have now been sentenced by United States District Judge Orinda Evans, as described more fully below:
•Nemias Cintora-Gonzalez, 30, of Smyrna, Ga., was sentenced to 29 years, 4 months in prison to be followed by 5 years of supervised release. Cintora-Gonzalez was convicted on February 22, 2013, following a federal jury trial, of conspiracy to possess with the intent to distribute and possession with the intent to distribute methamphetamine and cocaine; possession of a firearm in furtherance of a drug trafficking crime; possession of a firearm by an alien unlawfully and illegally in the United States; and possession of counterfeit federal reserve notes with the intent to defraud.
•Jorge Armando-Reyes, 31, of Smyrna, Ga., was sentenced to 17 years, 6 months in prison to be followed by 5 years of supervised release. Armando-Reyes was convicted on February 22, 2013, following a federal jury trial, of conspiracy to possess with the intent to distribute and possession with the intent to distribute methamphetamine and cocaine; possession of a firearm in furtherance of a drug trafficking crime; possession of a firearm by an alien unlawfully and illegally in the United States; and possession of counterfeit federal reserve notes with the intent to defraud.
•Alvaro Carraza Echeverria, 50, of Marietta, Ga., was sentenced to 21 years in prison to be followed by 5 years of supervised release. Echeverria pleaded guilty on October 23, 2012, to conspiracy to possess with the intent to distribute methamphetamine.
•Jose Vazquez Estrada, 35, of Marietta, Ga., was sentenced to 15 years, 7 months in prison to be followed by 5 years of supervised release. Estrada pleaded guilty on May 25, 2012, to conspiracy to possess with the intent to distribute methamphetamine and cocaine and illegal re-entry by a removed alien.
•Pedro Gutierrez Valdiviez, 48, of Marietta, Ga., was sentenced to 18 years, 9 months in prison to be followed by 5 years of supervised release. Valdiviez pleaded guilty on July 2, 2012, to conspiracy to possess with the intent to distribute methamphetamine.
•Edgar Cintora-Gonzalez, 26, of Smyrna, Ga., was sentenced to 11 years, 8 months in prison to be followed by 3 years of supervised release. Edgar Cintora-Gonzalez pleaded guilty on May 29, 2012, to possession with the intent to distribute methamphetamine and cocaine; possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm by an alien unlawfully and illegally in the United States.
•Israel Edgardo Revera-Pacheco, 29, of Smyrna, Ga., was sentenced to 10 years in prison to be followed by 3 years of supervised release. Revera-Pacheco pleaded guilty on May 4, 2012, to possession with the intent to distribute methamphetamine and cocaine; possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm by an alien unlawfully and illegally in the United States.
•Victor Hugo Morales-Avila, 35, of Smyrna, Ga., was sentenced to 9 years, 4 months in prison to be followed by 3 years of supervised release. Morales-Avila pleaded guilty on February 19, 2013, to possession with the intent to distribute methamphetamine and cocaine; possession of a firearm in furtherance of a drug trafficking crime; possession of a firearm by an alien unlawfully and illegally in the United States; and illegal re-entry by a removed alien.•Maria Yobal Perez, 51, of Marietta, Ga., was sentenced to 8 years, 1 month in prison to be followed by 5 years of supervised release. Yobal Perez pleaded guilty on August 30, 2012, to conspiracy to possess with the intent to distribute methamphetamine.
•Brenda Perez, 31, of Marietta, Ga., was sentenced to 1 year probation. Perez pleaded guilty on May 4, 2012, to misprision of a felony (concealing and failing to report her co-defendants’ illegal drug activities.)
These cases were investigated by Special Agents and Task Force Officers of the Drug Enforcement Administration, Georgia Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Secret Service, and Internal Revenue Service.
Assistant United States Attorneys Michael Herskowitz and J. Elizabeth McBath prosecuted the cases.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Cloud County Man Pleads Guilty to Planning Bank RobberyRead the Press Release
TOPEKA, KAN. – A Cloud County man has pleaded guilty to planning a 2008 bank robbery in Jamestown, Kan., U.S. Attorney Barry Grissom said today.
Ryan Michael Steinert, 24, Concordia, Kan., pleaded guilty to one count of conspiracy to commit bank robbery. In his plea, he admitted he conspired with co-defendant Eric Lee Strait to rob the Jamestown State Bank on Nov. 14, 2008. Strait entered the bank about 9:45 a.m. wearing a mask and brandishing a Remington, 12 gauge, pump-action shotgun. He filled a duffle bag with money and drove away.
Weeks before the robbery, Steinert conspired with Strait to plan the crime. Steinert admitted the following acts: – Accompanying Strait as Strait stole the shotgun used in the robbery.
– Driving Strait to where the stolen car was hidden and helping to position the car prior to the robbery
– Helping wipe down the stolen vehicle to remove fingerprints and physical evidence.
– Helping Strait dispose of the shotgun after the robbery.
– Receiving a share of the stolen money.Steinert’s sentencing is set for Oct. 9. He faces a maximum penalty of five years in federal prison and a fine up to $250,000.
Co-defendant Eric Lee Strait pleaded guilty to bank robbery and is set for sentencing Aug. 5.
Grissom commended the Kansas Bureau of Investigation, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Cindy Lee Johnson Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on July 2, 2013, before U.S. District Judge Sam E. Haddon, CINDY LEE JOHNSON, a 34-year-old resident of Clearfield, Utah, pled guilty to possession with intent to distribute methamphetamine. Sentencing has been set for October 7, 2013. She is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr the government stated it would have proved at trial the following:
On January 11, 2013, JOHNSON, was detained and then arrested by law enforcement following the execution of a search warrant by Drug Enforcement agents. JOHNSON was booked and transported to jail where she was searched.
On January 12, 2013, law enforcement was advised that jail staff had located 4.1 grams of methamphetamine on JOHNSON's body during the intake search.
On February 21, 2013, jailers received information from several other inmates that there was a large quantity of methamphetamine in the female cell block. The jailers learned that JOHNSON was believed to be the person who had smuggled in the methamphetamine and was distributing it to the rest of the inmates. A strip search was conducted of JOHNSON as was a search of JOHNSON's cell. In JOHNSON's cell jailers found two golf ball sized items wrapped in electrical tape. The items were unwrapped and tested. The two golf ball sized items were methamphetamine. The methamphetamine was weighed by the DEA lab and found to have a net weight of 52.4 grams and a purity of 89.2%.
JOHNSON had smuggled the methamphetamine into the jail following her arrest in her body cavity. JOHNSON concealed the drugs from jailers and distributed the methamphetamine to other female inmates at the jail between her arrest on January 11, 2013, and February 21, 2013.
JOHNSON faces possible penalties of a mandatory minimum of 5 years in prison and could be sentenced to 40 years, a $5,000,000 fine, and 4 years supervised release.
The illegal activities described in this case were in part attributable to the demand currently being noted in the areas referred to as the "Bakken Boom." The change of plea in this case is a direct result of the cooperative efforts of the Drug Enforcement Agency and the Montana Division of Criminal Investigations in those communities directly affected by the population influx due to the Bakken.
Chicago Area Man Indicted on Sex Trafficking Related ChargesRead the Press Release
St. Louis, MO - JAMALL BROWN was indicted on charges of transporting two female victims from Chicago to Missouri to Colorado and back for prostitution.
According to the affidavit filed with a criminal complaint on June 29, 2013, St. Louis Metropolitan Police Department officers responded to a report of a battered victim at St. Louis University Hospital Emergency Room. The victim, Jane Doe, told officers that she met Brown through a girlfriend in a Chicago hotel room after the two of them traveled there from Kentucky. In the weeks to follow, Brown was physically assaultive and he forced her and another female, Jane Doe Two, to engage in prostitution by advertising on Backpage.com online service. After spending a few days in Chicago, the defendant transported them to St. Louis where they engaged in acts of prostitution. After a few days he transported them to Denver, then eventually back to St. Louis. On June 28th, Doe told Brown that she wanted to stop prostituting and leave. Brown severely beat her and later dropped her off at the emergency room.
Brown, Chicago, IL, was indicted by a federal grand jury today on one felony count of interstate transportation for the purpose of prostitution.
If convicted, the maximum penalty for this charge is 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the St. Louis Metropolitan and Maplewood Police Departments. Assistant United States Attorney Howard Marcus is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.California Oxycodone Dealer convicted for drug conspiracy and witness tamperingRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that on July 1, 2013, after deliberating for four hours, a jury of four men and eight women found a California gang member guilty of drug conspiracy and witness tampering.
Richard Melvin Corum, a/k/a “Little Man,” 30, a resident of Sacramento, California, was tried before U.S. District Court Judge Timothy M. Burgess in Juneau, Alaska.
According to Assistant U.S. Attorney’s James Barkeley and Jack Schmidt, who prosecuted the case, the evidence presented at trial established Corum was a source of supply of oxycodone since April 2010 through January 2011, for a large scale drug conspiracy which operated between California and Alaska. Corum, a reported member of the criminal street gang “Bloods,” supplied oxycodone pills to the drug trafficking conspiracy, who would then utilize drug couriers to transport the pills to Juneau, Alaska, for subsequent distribution. In November 2010, due to heavy law enforcement interdiction at the Seattle-Tacoma airport of drug couriers, Corum and other members of the conspiracy decided to utilize commercial package delivery services instead of drug couriers in order to evade law enforcement detection.In November 2010, Corum recruited his cousin and his girlfriend to fly to Juneau to distribute pills for the conspiracy. In early December 2010, Corum’s cousin flew to Juneau to receive packages of oxycodone for subsequent sale in the Juneau area. Members of the conspiracy in California then received the pills obtained by Corum and shipped the pills to Corum’s cousin. Corum and other members of the conspiracy would direct Corum’s cousin to local dealers in the Juneau area to distribute the pills and collect drug proceeds. Corum’s cousin then took the drug proceeds and deposited them into the new bank account of Arianna Dixon, Corum’s girlfriend, which had been opened days before Corum’s cousin travelled to Juneau as a member of the conspiracy.
Corum was indicted for drug conspiracy on February 21, 2012, and arrested by law enforcement on March 2, 2012. During this time, other members of the conspiracy had been previously arrested and prosecuted for their roles in the drug conspiracy. As a result, a number of individuals were witnesses to Corum’s involvement in the drug conspiracy and agreed to testify against him. Corum was scheduled for trial in Anchorage in June 2012, for drug conspiracy, and then learned of the identities of those who were going to testify against him through the discovery process. On June 24, 2012, Corum assaulted one of the witnesses against him at the Anchorage Jail Center with the intent to prevent the witness from testifying against him. The incident was captured on video.
Judge Burgess has scheduled sentencing for October 17, 2013, in Juneau. The law provides for a sentence up to 30 years on each count, a fine of $2,000,000 and a mandatory minimum of 6 years to life of supervised release on the drug conspiracy count and a fine of $250,000 and up to five years of supervised release on the witness tampering charge.Ms. Loeffler commended the Drug Enforcement Administration’s D-22 High Intensity Drug Trafficking Area Task Force; Internal Revenue Service – Criminal Investigations; The State of Alaska Criminal Laboratory; Port of Seattle Police Department; and the Juneau Police Department - Drug Metro Unit for the successful investigation leading to the prosecution of Corum.
Buffalo Man Sentenced on Child Pornography ChargesRead the Press Release
BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Jeremy Otrosinka, 32, of Buffalo, N.Y., who was convicted of possession and distribution of child pornography, was sentenced to 180 months in prison by U.S. District Judge William M. Skretny.
Assistant U.S. Attorneys Edward H. White and John E. Rogowski, who handled the case, stated that the defendant created and administered a website that was a password protected bulletin board dedicated to the discussion and sharing of child pornography. On this site, members would post links to images and videos of child pornography and post private message discussions regarding child pornography. Otrosinka also sent and received emails that attached images and a video of child pornography. During online conversations, the defendant encouraged another individual to record sexual acts with this individual’s own child.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge, Richard M. Frankel.
“What makes this case particularly egregious is that the defendant maintained a website where like minded child predators could go,” said U.S. Attorney Hochul. “Our Office will continue to pursue child predators wherever they may be including the virtual world or real world.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Baltimore Crack Dealer Sentenced to 12 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Kintrell Todd McEachern, age 31, of Lochearn, Maryland, today to 12 years in prison followed by three years of supervised release for possession with intent to distribute crack cocaine. Judge Quarles also ordered that McEachern forfeit $13,601.50 seized during a search of his home.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Chief James W. Johnson of the Baltimore County Police Department.
According to McEachern's guilty plea, on January 24, 2012, law enforcement executed a search warrant at his residence and recovered a total of 344.2 grams of crack cocaine and $13,601.50 in cash. McEachern was arrested outside the home and searched. Law enforcement recovered 55.8 grams of crack cocaine from McEachern.
United States Attorney Rod J. Rosenstein commended the DEA and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Brooke Carey and Peter M. Nothstein, who prosecuted the case.
Aurora Man Charged with Defrauding His Beachwood Employer and Investment Clients Out of $366,000Read the Press Release
A 10-count information was filed charging an Aurora, Ohio, man with defrauding his Beachwood-based employer and its investment clients out of about $366,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Cleveland office of the Federal Bureau of Investigation.
Andrew J. Franz, age 41, was charged with three counts of mail fraud, one count of securities fraud, one count of investment adviser fraud and five counts of income tax evasion.
“This defendant betrayed the trust of his employer and his clients,” Dettelbach said. “He lined his pockets with the money that people worked a lifetime to save.”
Anthony said: “Andrew Franz enriched himself with hundreds of thousands of ill-gotten dollars by creating and carrying out various fraudulent schemes. The FBI will continue to work with our law enforcement partners to bring to justice those that steal the hard-earned money of others.”
The first three counts of the information charge that Franz, through his employment and association with the Ruby Corporation (Ruby), a Beachwood investment company, defrauded Ruby and at least 10 of its clients by misappropriating more than $366,000 in customer funds for his own personal use and benefit.
Franz submitted quarterly fee requests to mutual fund and annuity companies for payment of investment advisory fees for Ruby’s clients’ investment accounts. Franz then caused these companies to issue checks by mail to Ruby, which checks Franz intercepted and deposited into bank accounts he maintained and controlled, and which funds he used for his own personal use and benefit, according to the information.
Franz submitted some fee requests that were for amounts not due and payable to Ruby, and some fee requests that were for amounts greater than were due and payable to Ruby. Franz also caused mutual fund and annuity companies to send some of these fraudulently obtained fee payments through the mail to his own residence, according to the information.
On some occasions, Franz deposited the funds obtained by his fraudulent fee requests into the accounts of Ruby in an attempt to conceal his fraudulent activity. Franz also contacted a mutual fund company by telephone and, misrepresenting himself as the owner of a trust, caused the mutual fund company to mail payments to Franz’s personal residence. Franz then deposited these checks into bank accounts he maintained and controlled, according to the information.
The information specifically lists three checks, drawn on the accounts of various clients of Ruby, that the Integrity Life Insurance Company sent to Franz’s personal residence between July 20, 2010 and September 7, 2010 as payment for false and fraudulent fee requests that Franz submitted.
Count 4 charges Franz with securities fraud in using and employing manipulative and deceptive devices and contrivances in connection with the purchase and sale of securities by employing devices, schemes, and artifices to defraud, and by engaging in practices which operated as a fraud on investors.
Count 5 charges Franz with investment adviser Fraud in aiding and abetting an investment adviser, namely, Ruby Corporation, in employing a scheme to defraud a client or prospective client, and engaging in a practice which operated as a fraud and deceit upon a client, through the use of the mail and instrumentalities of interstate commerce.
Counts 6 through 8 charge that Franz committed income tax evasion for calendar years 2007, 2008, 2009 by filing false and fraudulent tax returns. Counts 9 and 10 charge Franz with Income Tax Evasion for calendar years 2010 and 2011 by failing to make an income tax return as required by law, and by conducting his business affairs and personal expenditures in a manner designed to conceal his receipt and disposition of income and assets from the Internal Revenue Service. The total amount of additional tax due and owing by Franz for the tax evasion charged in Counts 6 through 10 is $245,352, according to the information.
An information is only a charge 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.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Christian H. Stickan and Trial Attorney Scott M. Watson, following investigation by agents of the FBI, Cleveland Office and IRS-Criminal Investigations, Cleveland Office, with assistance of the United States Securities and Exchange Commission, Chicago, Illinois.
Arizona Woman Pleads Guilty to and Is Sentenced for Harboring and Concealing A Man to Prevent His ArrestRead the Press Release
ALBUQUERQUE – Jennifer Janice Morgan, 21, an enrolled member of the Navajo Nation who resides in Ganado, Ariz., N.M., pleaded guilty this morning to harboring and concealing a person for the purpose of preventing his arrest on an arrest warrant. Morgan, who has been in federal custody since her arrest on May 30, 2013, was sentenced to a year in prison, which was suspended, and a year of probation.
According to the criminal complaint, on May 21, 2013, Morgan evaded deputies of the McKinley County Sheriff’s Department as she drove from New Mexico towards Window Rock, Ariz., with a passenger who had an outstanding federal arrest warrant from the District of Arizona for violating the terms of his supervised release. As Morgan drove past the New Mexico-Arizona state line, officers of the Navajo Nation Division of Public Safety, who had activated their vehicles’ sirens and emergency lights, took up the pursuit as Morgan continued to drive through Window Rock and towards Fort Defiance, Ariz.
The officers finally were able to stop Morgan’s vehicle in Navajo, N.M. When the officers took Morgan into tribal custody, she admitted that she and her passenger were fleeing from the officers because her passenger was the subject of an outstanding arrest warrant. Morgan remained in tribal custody until her arrest on federal charges on May 30, 2013.
During today’s proceedings, Morgan entered a guilty plea to a misdemeanor information charging her with harboring and concealing a person from arrest.
This case was investigated by the Window Rock office of the Navajo Nation Department of Public Safety and the McKinley County Sheriff’s Department and was prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Arik Alan MacBlane Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on July 3, 2013, before U.S. District Judge Sam E. Haddon, ARIK ALAN MACBLANE, a 33-year-old resident of Williston, North Dakota, pled guilty to conspiracy to possess methamphetamine with intent to distribute and distribution. Sentencing has been set for October 7, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney , the government stated it would have proved at trial the following:
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
MACBLANE was from Lewistown. In November of 2009, MACBLANE moved to Billings to be with his girlfriend, Corina Moldrem. MACBLANE had been a methamphetamine user while living in Lewistown and continued to use the drug once he moved to Billings.
After MACBLANE returned to Billings in November of 2009, he learned that Moldrem was distributing methamphetamine and that her source was Jeri Lynn Milheim. A short time later, Milheim became MACBLANE's source for methamphetamine for further distribution. MACBLANE knew that Milheim was getting her methamphetamine from a source known as "Paco" that lived in Las Vegas, Nevada. Paco was later identified as Francisco Flores-Jorge. MACBLANE estimated he received methamphetamine from Milheim for approximately two months.
At some point Milheim and Paco had a falling out and Milheim started getting her methamphetamine from Angel and Jose Aguilar. MACBLANE paid the Aguilars between $2,000 and $2,500 each time he met with them to pay his debt. In early 2010, Angel arrived in Billings and introduced MACBLANE to Paco. After that meeting Angel and Jose both began traveling to Billings to distribute methamphetamine. MACBLANE distributed methamphetamine for Angel and Jose. A short time later, Angel and Jose then got in a fight with Paco over giving Milheim methamphetamine. At that point MACBLANE stopped getting methamphetamine from Angel and Jose.
In approximately May of 2010, Paco came back to Billings with Lee Navarro. Paco asked MACBLANE to continue to sell methamphetamine for him. MACBLANE agreed to distribute methamphetamine for Paco. Approximately two months later, Paco was in a serious car accident. Following the car accident, MACBLANE began receiving methamphetamine from Navarro directly for redistribution.
MACBLANE admitted he had customers wire him money on occasion to repay drug debts. MACBLANE admitted using his cellular telephone to communicate with Moldrem, Paco, and Navarro about drug dealing and drug debts. MACBLANE also admitted to receiving packages containing methamphetamine from Paco and Navarro at his personal residence.
The evidence would show that MACBLANE possessed with intent to distribute at least 500 grams of a substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, during his involvement in the conspiracy.
Francisco Flores-Jorge, Lee Navarro, Corina Moldrem and Jeri Lynn Milheim have all been convicted and sentenced for their roles in the offense.
MACBLANE faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $4,000,000 fine, and 5 years supervised release .
The investigation was conducted by the Billings Big Sky Safe Streets Task Force.
Anahit Hovhannisyan and Health Guard, Inc. Plead Guilty to Conspiracy to Commit Health Care Fraud ViolationsRead the Press Release
ANAHIT HOVHANNISYAN, age 34, of Armenia, pled guilty on Monday, July 1, 2013, to health care fraud. HEALTH GUARD, INC., a Louisiana corporation that operated as a medical clinic, also plead guilty to a health care fraud conspiracy. The pleas were entered before U. S. District Court Judge Lance M. Africk, announced U. S. Attorney Dana Boente.
According to the Second Superseding Indictment, the defendants participated in a criminal organization for the purpose of fraudulently billing Medicare and Medicaid. Patients went to HEALTH GUARD, INC. for medical tests that were not performed or medically necessary. Patients were moved between other commonly owned health care clinics to HEALTH GUARD, INC. to repeatedly perform the same unnecessary tests. Five other clinics and their owners have already been sentenced for the same activity. According to the Second Superseding Indictment, if the patients refused the diagnostic tests at HEALTH GUARD, INC., prescriptions for narcotic drugs were withheld. Thereafter, bills for the unnecessary services were submitted to Medicare and Medicaid. HOVHANNISYAN was the owner of HEALTH GUARD, INC., and also an unlicensed and unqualified diagnostic technician, according to the indictment.
The Second Superseding Indictment to which HOVHANNISYAN pled guilty carries a possible maximum sentence of ten (10) years imprisonment. Sentencing has been scheduled for September 26, 2013.
The investigation was conducted by Special Agents of the Federal Bureau of Investigation, the U. S. Department of Health and Human Services, Office of Inspector General, and the Louisiana Department of Justice, Medicaid Fraud Control Unit. The case is being prosecuted by Assistant U. S. Attorney Patrice Harris Sullivan.
(Download Factual Basis )
4 Individuals Indicted and Arrested for Drug TraffickingRead the Press Release
Perfume parlor used as a front for controlled substance sales
SAN JUAN, Puerto Rico – On June 27, 2013, a federal grand jury in the District of Puerto Rico returned an indictment against four defendants charged with conspiracy to possess with intent to distribute, and distribution of, cocaine and Oxycodone (commonly known as Percocet), announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration is in charge of the investigation.
According to the indictment, the object of the conspiracy was to use the establishment Perfumería Chris in Levittown, Toa Baja, PR, as a front from which the illegal sale of controlled substances, mainly cocaine and Percocet, could take place undetected, all for significant financial gain.
The defendants are: Ramón Santiago-Ortega, aka “Pucho”, owner of Perfumería Chris (perfume parlor); Jesús Cabrera-Martínez, aka “Papalote;” Yolanda Santiago-Orta and Elizabeth Rodríguez-Flores. They operated the Perfumería Chris, where they sold drug paraphernalia and narcotics in perfume accessories such as bags and boxes to disguise the controlled substances sold at their workplace. According to the indictment, the defendants would count and weight the controlled substances directly on top of the perfume counter before conducting the drug sales.
The defendants served as runners and sources of supply of cocaine for other members of the conspiracy, in addition to participating in the drug sales and splitting the earnings with other members. They used cellphones in committing, causing and facilitating controlled substance sales. It was further part of the manner and means of the conspiracy that members of the conspiracy advised as to the code names to use during the drug related conversations such as “Baskin-Robbins” in reference to 31 grams of cocaine (31 ice cream flavors) and “Perfume” in reference to kilos of cocaine.
Defendants Santiago-Ortega and Rodríguez-Flores are facing one count of managing and controlling a drug establishment. Since August 2011, these two defendants, owners, managers and/or employees, knowingly and intentionally used Perfumería Chris for the purpose of unlawfully storing and distributing cocaine and Percocet. As to the narcotics forfeiture allegation, the property to be forfeited is the two story building, to wit, Perfumería Chris.
“Drug trafficking organizations must be aggressively attacked and dismantled at every level,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “These defendants distributed narcotics inside what appeared to be a legitimate business, where they thought their illegal activities would go undetected.”
“Our citizens should not have to live with drug dealers operating in their communities - openly conducting their drug deals in stores, mall parking lots and streets,” stated Acting Special Agent in Charge Pedro J. Janer. “Individuals, whether they live in Mayagüez or in San Juan, should be able to walk their streets and go about their daily activities without fear or exposure to drug activity and potential related violence. We will continue working hard to enhance the quality of life in our neighborhoods.”
Special Assistant US Attorney Max Pérez-Bouret is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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Woodward Man Pleads Guilty to Unlawful Possession of Firearms and Ammunition After Being Involuntarily Committed to A Mental InstitutionRead the Press Release
Oklahoma City, Oklahoma – TIMOTHY DEAN EIKE, 19, from Woodward, Oklahoma, pled guilty to being in unlawful possession of firearms and ammunition after being involuntarily committed to a mental institution, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court filings and information from the plea hearings, on July 24, 2012, Eike was discovered to be in possession of a 20 gauge shotgun and a 30.06 caliber rifle, together with 97 rounds of 20 gauge ammunition and 168 rounds of 30.06 ammunition. The Woodward Police Department was aware that Eike had been ordered to involuntary inpatient mental health treatment on February 10, 2012. As a person who had been involuntarily committed to a mental institution, Eike was a prohibited from possessing firearms and ammunition under federal firearms laws. Further investigation revealed that on July 5 and 9, 2012, Eike purchased the weapons and ammunition from a licensed firearms dealer in Woodward, Oklahoma, and falsely represented that he had never been involuntarily committed to a mental institution.
Eike was indicted by a federal grand jury on May 7, 2013. He pled guilty on June 26, 2013, to being in unlawful possession of firearms and ammunition after being involuntarily committed to a mental institution. A sentencing date will be set by the Court in approximately 90 days where Eike faces up to ten years in prison.
This case was investigated by the Woodward Police Department, Woodward County Sheriff’s Office, Federal Bureau of Investigation, United States Marshals Service, and the Bureau of Alcohol Tobacco Firearms and Explosives. The case is being prosecuted by Assistant United States Attorney Edward J. Kumiega.
Virginia Man Sentenced to 22Years in Prison and Fined $500,000 for Attempting to Entice Minor to Engage in Illicit Sexual ActivityRead the Press Release
WASHINGTON - Paul David Hite, 58, an anesthesiologist from Midlothian, Va., was sentenced today to 22 years in prison and fined $500,000 on two federal charges of attempting to entice a minor to engage in illicit sexual activity, announced U.S. Attorney Ronald C. Machen Jr. and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Joining in the announcement were Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Hite was found guilty by a jury in February 2013 following a trial in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Colleen Kollar-Kotelly. Upon completion of his prison term, Hite will be placed on 10 years of supervised release.
Evidence presented at trial established that from Feb. 1, 2012 through Feb. 17, 2012, Hite engaged in a series of Internet chats and telephone calls with an undercover police detective in Washington, D.C., who was posing as an adult who was sexually abusing a minor girl and a minor boy. During the course of the communications with the undercover detective, Hite described, in graphic detail, the sexual activity in which he wanted to engage with the purported minors. Hite also discussed plans to travel to Washington, D.C. for the purpose of sexually abusing the purported minors.
Hite was arrested near his residence in Midlothian on Feb. 17, 2012. Law enforcement recovered computer equipment from Hite’s home, which uncovered evidence of child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
“This wealthy doctor trolled the Internet for child pornography and described in shocking detail the sex acts he wanted to perform on a 12-year-old girl and a 3-year-old boy,” said U.S. Attorney Machen. “We can only be thankful that he was identified and stopped by law enforcement before he had the opportunity to carry out his disturbing plans to drug and rape children. This sentence of more than 20 years behind bars should deter other criminals who are tempted to sexually abuse children.”
“Online predators who attempt to entice minors take advantage of our most precious resource, our children,” said Assistant Director in Charge Parlave. “The FBI is committed to apprehending dangerous offenders who sexually exploit children, and we will continue to work together with our partners to identify these predators and their victims.”
In announcing the sentence, U.S. Attorney Machen, Acting Assistant Attorney General Raman, Assistant Director in Charge Parlave and Chief Lanier commended the work of all who participated in the investigation. They especially acknowledged the efforts of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They expressed appreciation for the assistance provided by the U.S. Attorney’s Office for the Eastern District of Virginia, as well as the FBI’s Richmond Field Division.
They also acknowledged the efforts of Digital Investigative Analyst Christie Gardner of the Criminal Division’s Child Exploitation and Obscenity Section, and Criminal Investigator John Marsh of the U.S. Attorney’s Office for the District of Columbia. They additionally commended the efforts of those who assisted with the case at the U.S. Attorney’s Office, including Paralegal Specialist Starla Stolk; Legal Assistants Jessica Moffatt and Charmonique Price; Dawn Tolson-Hightower and David Foster of the Victim Witness Assistant Unit; and Joshua Ellen, Kimberly Smith, and Leif Hickling of the Litigation Services Unit.
Finally, they commended the work of Assistant U.S. Attorneys Elizabeth Wu from the Eastern District of Virginia, Diane Lucas of the Asset Forfeiture and Money Laundering Section of the U.S. Attorney’s Office for the District of Columbia, and David B. Kent and Julieanne Himelstein of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney Darcy Katzin of the Criminal Division’s Child Exploitation and Obscenity Section.
13-239Virginia Charter Boat Captain Sentenced for Illegal Harvest of Striped BassRead the Press Release
NORFOLK, Va. – Raymond Carroll Webb, 54, of White Stone, Va., and his company, Peak Enterprises, were both sentenced to a three-year term of probation and were ordered to pay a $3,000 fine and $1,000 in restitution to the National Oceanic and Atmospheric Administration (NOAA) for trafficking in illegally-harvested striped bass. The $3,000 fine was directed to the Lacey Act reward account which provides rewards to persons who report wildlife crime to law enforcement. Webb and Peake Enterprises were ordered to maintain a Vessel Monitoring System (VMS) unit on any vessel if used for charter fishing during the term of their probation. The VMS unit will allow law enforcement officers to track the vessel in real-time.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Robert G. Dreher, Acting Assistant Attorney General for the Environment & Natural Resources Division, and Logan Gregory, Special Agent in Charge for NOAA’s Office of Law Enforcement’s Northeast Division, made the announcement after sentencing by U. S. District Judge Arenda Wright Allen.
On January 28, 2013, Webb and Peake Enterprises each pled guilty to violation of the Lacey Act in the United States District Court in Norfolk, Virginia. The Lacey Act, among other things, makes it unlawful for any person to transport, sell, receive, acquire or purchase any fish or wildlife taken, possessed, transported or sold in violation of any law or regulation of the United States. Since 1990, federal law has made it unlawful to fish for, catch, or possess striped bass in the Exclusive Economic Zone (EEZ). The laws were passed in response to a decline in the striped bass populations in the late 1970’s and are designed to protect and preserve striped bass for future generations.
According to the plea agreement, Webb and Peake Enterprises admitted that they sold a chartered Striped Bass fishing trip on February 12, 2011. After departing from Rudee Inlet in Virginia Beach, Virginia, Webb knowingly took his charter clients into the EEZ to harvest striped bass, even though Webb knew that it was a violation of federal law to harvest striped bass inside the EEZ. Webb’ clients illegally harvested striped bass within the EEZ. At some point during the trip, Webb learned that there were Virginia Marine Police patrol boats in the area. Upon learning this, Webb ordered his first-mate to throw the all of the striped bass overboard to avoid detection by law enforcement.
This case was investigated by NOAA’s Office of Law Enforcement and the Virginia Marine Police with assistance from the Federal Communications Commission Enforcement Bureau, Norfolk Office. Assistant U.S. Attorney Stephen W. Haynie of the United States Attorney’s Office for the Eastern District of Virginia and Trial Attorney James B. Nelson of the Department of Justice’s Environmental Crimes Section prosecuted the case on behalf of the United States.A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Union County, N.J., Businessman Admits Tax Evasion SchemeRead the Press Release
Concealed Nearly $4m in Business Receipts
NEWARK, N.J. – A Union County, N.J., man who owns and operates a medical supply company that he runs out of his home admitted today to concealing $3,984,508 in business receipts and pleaded guilty to one count of tax evasion, U.S. Attorney Paul J. Fishman announced.
Yuxin Xie, 59, of Mountainside, N.J., pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging one count of tax evasion for failing to report business receipts from his company, YX Enterprises.According to documents filed in this case and statements made in court:
During the tax years in question – 2006 through 2010 – Xie purchased diabetic test strips from numerous suppliers. He re-packaged and sold them to wholesale pharmaceutical and medical products distribution companies. Customer payments that Xie received were deposited into 11 different bank accounts at three different financial institutions. YX Enterprises was not a registered corporation and any income received by YX Enterprises should have been reported on Xie’s tax returns.
Xie’s tax returns for the five years in question failed to report millions of dollars in gross receipts received by YX Enterprises. For each of the tax years 2006, 2007 and 2008, Xie’s tax returns reported that YX Enterprises had gross receipts of less than $10,000; Xie’s 2009 and 2010 tax returns contained no reference at all to YX Enterprises. YX Enterprises had in fact received nearly $4 million in business receipts during this five-year period.
Although Xie pleaded guilty to only one count of tax evasion for the 2009 tax year, the plea agreement requires that Xie admit to evading income taxes for all five years, and the court will take into account at sentencing the tax loss for all five years. The tax loss is $200,000 to $400,000.
Xie faces a maximum potential penalty of five years in prison and a fine of $250,000 or twice his gain from the offense, together with the costs of prosecution. Xie also agreed to file true and accurate tax returns and to pay to the IRS all taxes and penalties owed. Sentencing is scheduled for Oct. 23, 2013.U.S. Attorney Fishman credited special agents with IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, in Newark; special agents with the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Joseph Mack of the U.S. Attorney’s Health Care and Government Fraud Unit.
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Defense counsel: Robert J. DeGroot Esq., Newark
Xie Information
U.S. Marine Reservist Arraigned on Federal Child Pornography ChargesRead the Press Release
tALBUQUERQUE – Lee Baca, 22, a U.S. Marine Reservist who resides in Albuquerque, N.M., was arraigned this morning on a five count indictment charging him with child pornography offenses. Baca entered a not guilty plea to the indictment and was ordered detained pending trial, which has yet to be scheduled.
On June 26, 2013, a federal grand jury returned a sealed indictment charging Baca with three counts of receipt of visual depictions of minors engaged in sexually explicit conduct and two counts of possession of visual depictions of minors engaged in sexually explicit conduct. According to the indictment, Baca received child pornography between Dec. 2012 and Feb. 2013, and possessed child pornography in March 2013. The offenses allegedly occurred in Bernalillo County, N.M. The indictment was unsealed after Baca was arrested on June 29, 2013 by Homeland Security Investigations (HSI) agents.
If convicted, Baca faces a maximum prison sentence of not less than five years and not more than 20 years on each of the receipt of child pornography charges, and a maximum penalty of 20 years in prison on each of the possession of child pornography charges. The indictment against Baca is merely an accusation and he is presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Sexual Predator and Exploitation Enforcement (SPEED) Task Force, which is comprised of HSI, the Albuquerque Police Department and the Bernalillo County Sheriff’s Office, and the New Mexico Attorney General’s Office. The case is being prosecuted by Assistant U.S. Attorney Charlyn E. Rees as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
U.S. Attorney Reaches Settlement with the Xl Center to Ensure Access for People with DisabilitiesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced a settlement agreement with the XL Center, its management companies, the City of Hartford and the State of Connecticut to resolve allegations that the XL Center failed to comply with the Americans with Disabilities Act (ADA). The ADA prohibits discrimination on the basis of disability, including mobility impairments, in places of public accommodation. The XL Center is an arena in downtown Hartford that seats more than 16,000 people and hosts various athletic and entertainment events.
Following an investigation prompted by a complaint, the XL Center parties agreed to make numerous changes, including adding accessible bathrooms and seats, improving the existing accessible seating, removing mobility impairments, installing additional safety measures, and changing policies.
The XL Center, its management companies, the City of Hartford and the State of Connecticut worked cooperatively to address the deficiencies at the Center. The United States will continue to monitor the XL Center for the next three years to ensure ongoing compliance with the ADA.
“The law appropriately mandates that all people including those with disabilities have equal access to places of public accommodation,” stated Acting U.S. Attorney Daly. “As the XL Center serves so many, we hope the Center’s significant efforts will act as a reminder to all businesses of their legal obligations under the ADA to the citizens of Connecticut. Even facilities that were built prior to the 1992 enactment of the ADA are legally required to remove all physical barriers to access so that their facilities can be enjoyed fully and equally by all people, including those that have limited mobility.”
The ADA prohibits discrimination and ensures equal opportunity for persons with disabilities in employment, state and local government services, public accommodations, commercial facilities, and transportation.
The enforcement of the ADA is a top priority of the United States Attorney’s Office for the District of Connecticut and the Justice Department’s Civil Rights Division. Individuals can file an ADA complaint with the U.S. Attorney’s Office in Connecticut by calling 203-821-3700, and also by visiting www.ada.gov/filing_complaint.htm. Additional information about the ADA and its application to places of public accommodation can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TDD).
This case was handled by Assistant United States Attorneys Lisa E. Perkins and David C. Nelson.
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(203) 821-3722 [email protected]Two from Lorain County Charged with Fraud for Diverting $290,000 from Escrow AccountRead the Press Release
Two Lorain County men were charged with conspiracy to commit wire fraud for defrauding companies and customers out of more than $290,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Charged in the criminal information are Gregory R. Klima, 52, of Avon Lake, and Timothy R. Grodzik, 52, of Columbia Station. The men owned Title Access, LLC, with Klima serving as president and Grodzik as vice president of sales, according to the information.
Title Access was formed in 2000 and in the business of administering real estate transactions by providing services including title insurance and escrow account management. Title Access used Stewart Title as an underwriter for the issuing of title insurance, according to the information.
Klima and Grodzik are accused of defrauding Stewart and parties to real estate transactions by diverting funds from Title Access’ escrow account for their personal benefit between December 2009 and February 2011, according to the information.
Around February 2011, Grodzik, with Klima’s knowledge, falsified Access’ financial documents to conceal from a Stewart auditor the fact that they diverted funds from the Title Access escrow account, according to the information.
This case is being prosecuted by Assistant U.S. Attorney Robert J. Patton following an investigation by the Federal Bureau of Investigation and the Ohio Department of Insurance.
An information only a charge 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.
Two Clarksburg Residents Sentenced on Crack Cocaine ChargesRead the Press Release
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Preston County Resident Enter Plea to Possession of Stolen Explosives
CLARKSBURG, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II announced that the following individuals recently appeared in Federal Court in Clarksburg.
JASON SAUNDERS a/k/a “JOSH JAMES,” age 25, of Bridgeport, West Virginia, was sentenced to 41 months imprisonment to be followed by six years of supervised release. SAUNDERS entered a plea of guilty on March 20, 2013, to “Distribution of Crack Cocaine within 1,000 Feet of Simpson Elementary School” on May 29, 2012.
DEREK DELEON BROWN a/k/a “SMOKE,” age 23, of Clarksburg (formerly of Pittsburgh, Pennsylvania) was sentenced to 15 months imprisonment to be followed by three years of supervised release. BROWN entered a plea of guilty on March 20, 2013, to “Distribution of Crack Cocaine” on June 26, 2012, in Harrison County.
SAUNDERS and BROWN were remanded to the custody of the United States Marshal pending designation to a Federal institution.
This case was prosecuted by Criminal Chief Shawn A. Morgan and investigated by the Harrison County Drug Task Force consisting of officers from the Clarksburg Police Department, the Harrison County Sheriff’s Department and the Bridgeport Police Department.
GREGGORY MAYFIELD, age 49, of Albright, West Virginia, entered a plea of guilty to “Possession of Stolen Explosives.” From December 2012 to February 20, 2013, MAYFIELD possessed two sticks of dynamite and 2 blasting caps he had stolen from his employer, Consolidation Coal Company. MAYFIELD, who is free on bond pending sentencing, faces up to 10 years imprisonment and a $250,000 fine. This case was prosecuted by Criminal Chief Shawn A. Morgan and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Two Charged with Illegally Reentering the United StatesRead the Press Release
Two people were indicted on unrelated cases of illegal reentering the United States following deportation, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
One indictment alleges that Yobany Teofilo Gonzalez-Velasquez, 37, is undocumented and was previously removed or deported from the United States to Guatemala on February 12, 2009, subsequent to a conviction for an aggravated felony.
Another indictment alleges that Julio Cruz-Lopez, 27, is undocumented and was previously removed or deported from the United States to Mexico on multiple occasions.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The cases are being prosecuted by Assistant U.S. Attorneys Phillip J. Tripi and Justin Seabury Gould, following investigation by agents of the Enforcement and Removal Operations of the Immigration and Customs Enforcement Agency.
An indictment is only a charge 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.
Trover Health System of Madisonville, Kentucky Pays $1,162,837 to Settle False Claims AllegationsRead the Press Release
– Trover is among 55 hospitals in the agreement to pay the U.S. more than $34 million to resolve allegations related to Kyphoplasty
LOUISVILLE, Ky. – Trover Health System of Madisonville, Kentucky has voluntarily entered into a settlement with the United States of America to pay $1,162,837.00 to settle allegations that it submitted false claims in violation of the Federal False Claims Act, announced the Office of Inspector General of the Department of Health and Human Services and David J. Hale, United States Attorney for the Western District of Kentucky. Fifty-five hospitals located throughout twenty-one states are part of today’s announcement by the Justice Department that have agreed to pay the United States a total of more than $34 million to settle allegations that the health care facilities submitted false claims to Medicare for kyphoplasty procedures.
“Pursuing health care fraud is a priority of my Office and the Department of Justice. We will continue to work with the Department of Health and Human Services to ensure that medical providers who overbill Medicare are investigated and held to account,” stated David J. Hale, United States Attorney for the Western District of Kentucky.
According to the settlement agreement, the United States contends that Trover Foundation Clinic, Inc., d/b/a Trover Health System, submitted Diagnosis-related Group (DRG) claims to Medicare for certain kyphoplasty procedures performed between May 1, 2001, and July 31, 2009, as inpatient procedures when, in fact, they should have been billed as outpatient procedures. Kyphoplasty is a minimally-invasive surgery used to treat compression fractures of the spine. The device kits used in the procedure are manufactured and marketed by Medtronic Spine LLC, formerly known as Kyphon, Inc. In most cases, the procedure is done on an elective basis and requires only two hours of observation following surgery, and hence can often be done on an outpatient basis. However, Trover Health Systems often incorrectly billed these procedures to Medicare as an inpatient level of service, which reimbursed at a higher rate.
Relators Charles Bates and Craig Patrick filed a qui tam action on May 29, 2008, in the United States District Court for the Western District of New York. They will receive $203,496 of the settlement proceeds.
This agreement is neither an admission of liability by Trover Health System nor a concession by the United States that its claims are not well-founded.
This investigation was handled by Assistant United States Attorney Benjamin S. Schecter along with the United States Attorney’s Office for the Western District of New York and the Commercial Litigation Branch for the Department of Justice.
Title of the news release goes hereRead the Press Release
Jacksonville, Florida - United States Attorney Robert E. O'Neill announced today that John Charles Stevenson (45, Rincon, Georgia) has been indicted by a federal grand jury, in Jacksonville, on child pornography charges. Stevenson is charged with two counts of receiving child pornography over the Internet. He faces a mandatory minimum sentence of 5 years, up to 20 years in prison and a $250,000 fine.
Stevenson was arrested in Rincon, Georgia on June 21, 2013 and remains in the custody of the U.S. Marshals Service pending a detention hearing on July 11, 2013, at the U.S. Courthouse in Jacksonville.
According to the indictment, on two separate occasions, Stevenson knowingly received visual depictions of a minor engaged in sexually explicit conduct via the Internet.This case was investigated by the Federal Bureau of Investigation and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
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 (CEOS), 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.projectsafechildhood.gov. For more information about internet safety education, please visit www.projectsafechildhood.gov and click on the tab "other resources."
Thornton Man Pleads Guilty and Is Sentenced for Assaulting A Spirit Airlines Flight AttendantRead the Press Release
DENVER – Evan Nathaniel Castle, age 24, of Thornton, Colorado, pled guilty to and was sentenced yesterday for misdemeanor assault of a Spirit Airlines flight attendant, United States Attorney John Walsh and FBI Denver Special Agent in Charge Thomas Ravenelle announced.
On April 8, 2013, Castle was a passenger on Spirit Airlines Flight 562 en route from Las Vegas, Nevada to Denver International Airport. During the flight Castle was served several alcoholic drinks. He then became loud and used profane language, and he physically harassed one of the flight attendants.
As a result of his conduct, Castle was sentenced to serve 2 years’ probation and ordered to attend alcohol counseling by U.S. Magistrate Judge Craig B. Shaffer.
This case was investigated by the Federal Bureau of Investigation (FBI).
Castle was prosecuted by Assistant U.S. Attorney James Allison, Chief of the U.S. Attorney’s Office Criminal Division.
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Texas Syndicate Members Convicted in Federal Court in Del RioRead the Press Release
In Del Rio, three Texas Syndicate members from Uvalde, TX, face up to life in federal prison after a federal jury convicted them last night of various violations of federal racketeering offenses committed in Uvalde, San Antonio and the surrounding areas announced United States Attorney Robert Pitman.
Jurors convicted 38-year-old Raul “Fatboy” Rodriquez, 37-year-old Mike “Big Mike” Cassiano and 35-year-old Cristobal “Little Cris” Velasquez of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute. Evidence presented during the trial revealed that Rodriquez, Cassiano and Velasquez, along with eleven other Texas Syndicate members and associates, conspired since 2002 to commit three murders, one attempted murder, extortion, plus distribution of controlled substances.
In addition to the conspiracy charge, jurors convicted:
- Rodriquez of a violent crime in aid of racketeering, namely the murder of Rogelio Mata in Uvalde, Texas on October 13, 2002, for allegedly failing to follow the rules of the Texas Syndicate;
- Velasquez of conspiracy to commit violent crime in aid of racketeering and the substantive charge of violent crime in aid of racketeering for the murder of Jose Guadalupe de la Garza on December 25, 2005, in Uvalde, Texas for allegedly disrespecting the Texas Syndicate as well as conspiracy to commit robbery in violation of the RICO statute; and,
- Cassiano, who previously held a leadership role in the criminal organization in 2005, of two counts of conspiracy to commit violent crime in aid of racketeering for the Jose Guadalupe de la Garza murder and the November 9, 2009, murder of Jesse James Polanco in Uvalde. Mr. Polanco was murdered because it was suspected he was cooperating with law enforcement.
The following 11 co-defendants are awaiting sentencing after pleading guilty prior to trial to violating the RICO statute: Sotero Rodriguez Martinez (a.k.a. “June”) of Uvalde; Chuco Mario Martinez (a.k.a. “Mariachi”) of Uvalde; Jose Andres Torres (a.k.a “Yogi”) of Uvalde; Larry Munoz, Jr. (a.k.a. “Little Larry”) of Uvalde; Brian Esparza (a.k.a. “Tata”) of Uvalde; Charles Esparza (a.k.a. “Horse”) of Uvalde; Ervey Sanchez (a.k.a. “Mad Max”) of Uvalde; Inez Mata (a.k.a. “Bebito”) of Uvalde; Mark Anthony Vela of Hondo, Texas; Mario Alberto Gonzales (a.k.a. “The Enforcer”) of Hondo; and, Charles Olan Quintanilla of Hondo.
In a separate, but related matter, on June 20, 2013, a federal jury in Del Rio returned guilty verdicts against Eli Torres and Alfredo Tapia III, the last two defendants involved in a narcotics distribution ring operating in Hondo, Uvalde, San Antonio and the surrounding areas. This narcotics distribution ring was connected to and associated with the Texas Syndicate prison gang.
Jurors convicted 37-year-old Eli Torres of Uvalde of conspiracy to possess with the intent to distribute 500 grams or more of cocaine from August 1, 2009, until September 28, 2011. Evidence presented at trial revealed that Torres, as a member of the Texas Syndicate, participated in this drug distribution ring by using the organization’s drug distribution connections to aid him in obtaining cocaine to sell on the streets of Uvalde. Torres faces between ten years and life in federal prison for this conviction. Torres was also found guilty of possession with the intent to distribute 500 grams or more of cocaine within 1,000 feet of the Sacred Heart Parish School in Uvalde. As a result, he faces between five and 80 years in prison for this conviction. Torres, who remains in federal custody, awaits sentencing scheduled for December 16, 2013.
Jurors also convicted 42-year-old Alfredo “Naco” Tapia, III, of conspiracy to possess with the intent to distribute 500 grams or more of cocaine from August 1, 2009, until September 28, 2011. He was also found guilty of conspiracy to possess with the intent to distribute 100 kilograms or more of marijuana from August 1, 2009 until September 28, 2011. Tapia faces between five and 40 years in federal prison for each conviction. Evidence presented at trial revealed that Tapia was associated with members of the Texas Syndicate prison gang and facilitated their distribution of cocaine and marijuana.
The other members of the conspiracy listed below are all awaiting sentencing after entering guilty pleas prior to trial. They include: Jose Alberto Ruiz (a.k.a. “Spike”), of Uvalde; Calletano Nira (a.k.a. “Cat) of Hondo; Joshua Leonard Benavides of Hondo; Ted Benavides (a.k.a. “TJ”) of Hondo; Jessica Escareno of Hondo; Ruben Dominguez of Hondo; Sandra Torres of Uvalde; Jaime Corona, Jr., of Hondo; John Khosravi of San Antonio; and, former Bandera County Sheriff’s Deputy Thomas Cuellar of Hondo. On April 2, 2013, Cuellar pleaded guilty to one count of unlawful use of a government computer and one count of possession with intent to distribute cocaine. By pleading guilty, Cuellar admitted that on August 31, 2010, he unlawfully accessed a department computer in order to obtain law enforcement information regarding co-conspirators. As a result, Cuellar faces up to twenty years in federal prison on the drug charge and up to five years in federal prison on the unlawful access charge. Only Cuellar and Sandra Torres are currently on bond pending sentencing; all other defendants remain in federal custody.
These prosecutions resulted from a joint investigation by the Federal Bureau of Investigation with the Texas Department of Public Safety--Criminal Investigations Division, San Antonio Police Department, Medina County Sheriff’s Office and the Bandera County Sheriff’s Office. Also assisting in the investigation was the 38th Judicial District Adult Probation Gang Unit, Texas Department of Criminal Justice and the U.S. Bureau of Prisons. The U.S. Marshals Service, U.S. Immigration and Customs Enforcement-Customs and Border Protection and the Uvalde County Sheriff’s Department assisted in making the arrests. These cases were prosecuted by Assistant United States Attorneys Erica Giese, Ralph Paradiso and Patrick Burke.
Ten Individuals Sentenced in Federal CourtRead the Press Release
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ELKINS, WEST VIRGINIA - Ten individuals were recently sentenced in United States
District Court in Elkins by Chief Judge John Preston Bailey.United States Attorney William J. Ihlenfeld, II, announced that:
CHRISTOPHER WAYNE WILLIAMS, age 39, of Mill Creek, West Virginia, was sentenced to 70 months imprisonment to be followed by three years of supervised release. WILLIAMS entered a plea of guilty on April 17, 2013, to “Felon in Possession of a Firearm.” WILLIAMS possessed a firearm on March 15, 2013, despite having a prior felony conviction from the Circuit Court of Cabell County for Burglary. WILLIAMS’ sentence was enhanced due to his possession of stolen firearms in connection with the offense of burglary. WILLIAMS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
This case was prosecuted by Criminal Chief Shawn A. Morgan and investigated by the
Bureau of Alcohol, Tobacco, Firearms and Explosives.WILLIAM JOSEPH RUSSELL, age 39, of Cass, West Virginia, was sentenced to 60 months imprisonment to be followed by three years of supervised release. RUSSELL entered a plea of guilty on February 7, 2013, to “Possession of Material Used in the Manufacture of Methamphetamine.” RUSSELL, who is free on bond, will self-report to the designated Federal institution. This case was investigated by the West Virginia State Police and the Pocahontas County Sheriff’s Office
VELAIR VON COLLINS, II, age 42, of Elkins, West Virginia, was sentenced to 57 months imprisonment to be followed by three years of supervised release. COLLINS entered a plea of guilty on March 27, 2013, to “Felon in Possession of a Firearm.” COLLINS, having previously been convicted in the Circuit Court of Randolph County, West Virginia, of the felony offense of Driving Under the Influence-Third Offense, knowingly possessed a Harrington & Richardson shotgun and a Marlin rifle on September 4, 2012, in Elkins. COLLINS, who is free on bond, will self-report to the designated Federal institution. This case was investigated by the Elkins Police Department and the West Virginia State Police.
These two cases were prosecuted by Assistant United States Attorney Stephen D. Warner.
TIMOTHY WAYNE WALDEN, age 36, of Bayard, West Virginia, was sentenced to
41 months imprisonment to be followed by 20 years of supervised release. WALDEN entered a plea of guilty on April 16, 2013, to “Failure to Update Sex Offender Registration.” From November 12, 2012, to January 17, 2013, in Bayard, West Virginia, WALDEN knowingly failed to update a registration pursuant to the Sex Offender Notification Act. WALDEN was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was investigated by the United States Marshals Service.RONALD JOHN LOUK, age 30, of Churchsville, Virginia,was sentenced to 37 months imprisonment to be followed by 20 years of supervised release. LOUK entered a plea of guilty on March 27, 2013, to “Failure to Update Sex Offender Registration.” During the period October 20 to November 21, 2012, LOUK, a person required to register under the Sex Offender Notification Act and who traveled in interstate commerce, did knowingly fail to update his registration. LOUK was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was investigated by the United States Marshals Service and the West Virginia State Police.
These two cases were prosecuted by Criminal Chief Shawn A. Morgan.
BRANDON EDWARD ANDERSON, age 23, of Rock Cave, West Virginia, was sentenced to 37 months imprisonment to be followed by three years of supervised release. ANDERSON was also ordered to make restitution in the amount of $2,496 to the Drug Enforcement Administration for the meth lab clean up. ANDERSON entered a plea of guilty on April 16, 2013, to two counts of “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” ANDERSON was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was investigated by the West Virginia State Police.
BRIAN KEITH HAMMER, age 51, of Elkins, was sentenced to 15 months imprisonment to be followed by three years of supervised release. HAMMER entered a plea of guilty on December 11, 2012, to “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” HAMMER, who is free on bond, will self-report to the designated Federal institution. This case was investigated by the Randolph County Sheriff’s Department and the West Virginia State Police.
These two cases were prosecuted by Assistant United States Attorney Stephen D. Warner.
JANEL PHILLIPS, age 45, of Belington, West Virginia, was sentenced to 10 months imprisonment, with the first 5 months being served in the custody of the Bureau of Prisons and the second 5 months being served under home detention. PHILLIPS was also ordered to make restitution in the amount of $85,327.74 to Legal Aid of West Virginia. PHILLIPS entered a plea of guilty on March 27, 2013, to “Federal Program Fraud.” From January of 2007 to May of 2010, PHILLIPS, while working as a ombudsman for Legal Aid of West Virginia, submitted false mileage claims and time sheets to fraudulently obtain over $90,000 from the federally funded Long-Term Care Ombudsman Fund. PHILLIPS, who is free on bond, will self-report to the designated Federal institution. This case was prosecuted by Assistant United States Attorney Andrew R. Cogar and investigated by the Department of Health and Human Services and the Legal Services Corporation-Office of Inspector General.
TIFFANY ROACH, age 24, of Lewis County, West Virginia, was sentenced to 5 years probation. ROACH entered a plea of guilty on December 13, 2012, to “Providing a False Statement to a Federal Firearms Licensee in the Acquisition of a Firearm”. This case was prosecuted by Assistant United States Attorney Zelda E. Wesley and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Weston Police Department.
HUNTER TURNER, age 20, of Circleville, West Virginia, was sentenced to 5 years probation. TURNER entered a plea of guilty on July 9, 2012, to “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” TURNER completed a drug rehabilitation program at the Anthony Center while waiting for his sentencing hearing. This case was prosecuted by Assistant United States Attorney Stephen D. Warner and investigated by the West Virginia State Police and the United States Forest Service/Homeland Security Investigations.
Solar Technology Research Scientist Pleas Guilty to Wire FraudRead the Press Release
PHILADELPHIA - Tung Pham, 48, pled guilty on July 1st, 2013 to seven counts of an indictment that charged him with wire fraud and theft of trade secrets. Mr. Pham pled guilty to the wire fraud charges, and agreed that when calculating his Sentencing Guidelines, the court could consider the theft of trade secret charges. Mr. Pham entered his guilty plea before U.S. District Judge Anita Brody, who scheduled a sentencing hearing for November 6, 2013. Pham faces a maximum penalty of 140 years in prison.
Mr. Pham worked as a research scientist in the solar technology field. The wire fraud charges involved an attempt by Mr. Pham to escape a non-compete clause in his employment contract that prevented him from working for any competitor for a period of one year. Mr. Pham had signed an agreement with a start-up Chinese company to work in the same area as he was already working. The wire fraud charges involved his efforts to create a fake employment contract that he could show to his employer to get out of the non-compete agreement. The theft of trade secret charges involved his taking the product formulas for existing, successful solar technology products from his employers. At the time that the FBI executed a search warrant on Mr. Pham’s home and found the trade secrets, he was planning to leave a few days later for China to start working for his new employer.
The case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Michael L. Levy.
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PATTY HARTMAN, Media Contact, 215-861-8525Six Members of Drug Ring Sentenced to Lengthy Prison Sentences Following Guilty Pleas to Narcotics and Money Laundering Charges- Members Operated in Southeast Washington and at Other Locations -Read the Press Release
WASHINGTON Six area men have been sentenced to prison terms on federal narcotics and money laundering charges, stemming from their roles in a ring that distributed significant amounts of cocaine in the Washington, D.C. metropolitan area, U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD) announced today.
The defendants include Robert Savoy, 41, of Fort Washington, Md.; James Brown, 42, of Washington, D.C.; Terrence Hudson, 39, of Oxon Hill, Md.; Jerome Johnson, 41, of Capitol Heights, Md.; Nathan Robinson, 40, of Washington, D.C.; and Eric Scurry, 41, also of Oxon Hill, Md. All previously pled guilty in the U.S. District Court for the District of Columbia. The last of the six defendants was sentenced this morning.
The men were arrested during a long-term investigation by the FBI/MPD Safe Streets Task Force into a criminal organization supplying street-level dealers with significant quantities of powder cocaine and crack cocaine for distribution in the Washington, D.C. metropolitan area. In particular, members of this organization distributed powder cocaine and crack cocaine in the 4200 and 4300 blocks of Fourth Street SE. They also distributed narcotics in other areas of Washington, D.C., and Maryland.
During the course of the investigation, agents and detectives seized multiple handguns, more than a kilogram of powder cocaine, large quantities of crack cocaine, and over $40,000 in cash. Savoy, Hudson and Robinson were arrested on Nov. 10, 2010; Johnson and Scurry were arrested on Dec. 17, 2010; and Brown was arrested on Sept. 15, 2011. All six defendants were detained following their arrests and have remained in custody since that time.
Johnson and Brown pled guilty on Sept. 7, 2012. Savoy, Hudson and Scurry pled guilty on Sept. 10, 2012, and Robinson pled guilty on Sept. 12, 2012. All of the defendants entered the pleas before the Honorable Chief Judge Royce C. Lamberth.
According to evidence presented at the plea hearings, Johnson supplied Savoy with kilograms of cocaine. In turn, Savoy supplied large quantities of cocaine to Brown and Hudson, among others. Savoy also supplied large quantities of cocaine base to other individuals throughout the Washington, D.C., metropolitan area.
Brown and Hudson supplied these narcotics to others. At times, Hudson coordinated his narcotics sales with Scurry and Robinson, who both distributed large quantities of cocaine base in the 4200 and 4300 blocks of Fourth Street, SE, among other places. Robinson would also coordinate his narcotics sales with Scurry.
Chief Judge Lamberth accepted the terms of the plea agreements and sentenced Savoy to a prison term of 17 years, Scurry to a prison term of 12 years, Hudson to a prison term of 10 years, Johnson and Robinson to prison terms of eight years, and Brown to a prison term of seven years. Hudson was sentenced on Nov. 27, 2012; Robinson was sentenced on Nov. 29, 2012; Brown and Scurry were sentenced on Nov. 30, 2012; Savoy was sentenced on June 4, 2013, and Johnson was sentenced today.
This prosecution grew out of a long-term FBI/MPD alliance called the Safe Streets Task Force that targets violent drug trafficking gangs in the District of Columbia. The Safe Streets Initiative is funded in part by the Baltimore Washington High Intensity Drug Trafficking Area as well as the Organized Crime Drug Enforcement Task Force. The Safe Streets Initiative involves more than 150 Safe Streets Task Forces around the country that combat street gangs by combining federal, state and local police resources.
In announcing the sentences, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Chief Lanier commended the actions of the Special Agents from the FBI’s Washington Field Office, as well as the actions of other MPD members of the Safe Streets Task Force. They also commended the support provided by U.S. Attorney’s Office employees, including Paralegals Regan Gibson and Candace Battle; Legal Assistants Candace Cisco and Diane Brashears; Criminal Intelligence Analyst Frank Morgan, and Information Technology Specialists Kimberly Smith, Paul Howell, and William Henderson.
Finally, they praised the efforts of Assistant U.S. Attorneys Arvind Lal and Opher Shweiki, who investigated and prosecuted the case, Assistant U.S. Attorney Zia Faruqui, who assisted with the money laundering and asset forfeiture issues, and Assistant U.S. Attorney Fernando Campoamor-Sanchez and former Special Assistant U.S. Attorney Les Gross, who assisted in the investigation.
13-237Several Arrested in Large Scale Methamphetamine ConspiracyRead the Press Release
HOUSTON – An extensive methamphetamine trafficking organization has been dealt a large blow with the indictment of eight individuals on federal drug conspiracy charges, United States Attorney Kenneth Magidson announced today. The indictment, returned under seal June 5, 2013, arose as a result of a two-year investigation culminating in arrests this morning.
“The illegal distribution of methamphetamine especially in the quantities involved in this case receive the fullest attention of the investigative efforts of our joint federal, state and local law enforcement partners.” said Magidson. “It will always be a priority to prosecute major drug trafficking within the Southern District of Texas.”
Among those arrested was Edmundo Reyes aka “Mundo” or “Bossman,” a 34-year-old from Spring who is facing six counts of drug possession and conspiracy. Four others were also taken into custody today - Gerardo Garcia, 34, Delfino Maldonado, 30, Christopher Mejia, 22, and Alexander Reyes, 30, all of Houston. These five made their initial appearances before U.S. Magistrate Judge George Hanks just a short time ago, at which time the indictment was unsealed by order of the court.
Charged and previously in custody are Jeremy Perkins, 32, of Louisiana, and Refugio Ibarra, 26, of Mexico. They are expected to be transferred into federal custody to make their initial appearances in the near future.
An eighth defendant, Salvador Izaguirre, 31, of Houston, is also charged but not as yet in custody. Anyone with information about his whereabouts is asked to contact the U.S. Marshals Service at 713-718-4800.
The seven-count indictment alleges the eight men conspired with one another and others known and unknown from February 2009 through June 2013 to distribute methamphetamine. Reyes is charged in five additional substantive drug trafficking counts. Each of the remaining defendants is also charged in at least one additional substantive count of possessing with intent to distribute various quantities of methamphetamine.
In addition to the arrests today, agents and task force officers executed search warrants at four separate residences, which resulted in the seizure of eight vehicles, more than $30,000, approximately nine ounces of methamphetamine and multiple firearms. The seizures occurred pursuant to forfeiture warrants authorizing the recovery of property alleged to have been purchased with the proceeds of illegal narcotics sales.
If convicted of the conspiracy charge, all defendants face a mandatory minimum of 10 years and up to life imprisonment as well as a $10 million fine. All substantive counts carry an equal or lesser possible sentence depending upon the amount of drugs involved.
The investigation was conducted by the Drug Enforcement Administration, Texas Department of Public Safety Narcotics Division, Houston Police Department and the USMS. Assistant United States Attorneys Mark E. Donnelly and Tim S. Braley are prosecuting.
Several Arrested in Large Scale Methamphetamine ConspiracyRead the Press Release
HOUSTON – An extensive methamphetamine trafficking organization has been dealt a large blow with the indictment of eight individuals on federal drug conspiracy charges, United States Attorney Kenneth Magidson announced today. The indictment, returned under seal June 5, 2013, arose as a result of a two-year investigation culminating in arrests this morning.
“The illegal distribution of methamphetamine especially in the quantities involved in this case receive the fullest attention of the investigative efforts of our joint federal, state and local law enforcement partners.” said Magidson. “It will always be a priority to prosecute major drug trafficking within the Southern District of Texas.”
Among those arrested was Edmundo Reyes aka “Mundo” or “Bossman,” a 34-year-old from Spring who is facing six counts of drug possession and conspiracy. Four others were also taken into custody today - Gerardo Garcia, 34, Delfino Maldonado, 30, Christopher Mejia, 22, and Alexander Reyes, 30, all of Houston. These five made their initial appearances before U.S. Magistrate Judge George Hanks just a short time ago, at which time the indictment was unsealed by order of the court.
Charged and previously in custody are Jeremy Perkins, 32, of Louisiana, and Refugio Ibarra, 26, of Mexico. They are expected to be transferred into federal custody to make their initial appearances in the near future.
An eighth defendant, Salvador Izaguirre, 31, of Houston, is also charged but not as yet in custody. Anyone with information about his whereabouts is asked to contact the U.S. Marshals Service at 713-718-4800.
The seven-count indictment alleges the eight men conspired with one another and others known and unknown from February 2009 through June 2013 to distribute methamphetamine. Reyes is charged in five additional substantive drug trafficking counts. Each of the remaining defendants is also charged in at least one additional substantive count of possessing with intent to distribute various quantities of methamphetamine.
In addition to the arrests today, agents and task force officers executed search warrants at four separate residences, which resulted in the seizure of eight vehicles, more than $30,000, approximately nine ounces of methamphetamine and multiple firearms. The seizures occurred pursuant to forfeiture warrants authorizing the recovery of property alleged to have been purchased with the proceeds of illegal narcotics sales.
If convicted of the conspiracy charge, all defendants face a mandatory minimum of 10 years and up to life imprisonment as well as a $10 million fine. All substantive counts carry an equal or lesser possible sentence depending upon the amount of drugs involved.
The investigation was conducted by the Drug Enforcement Administration, Texas Department of Public Safety Narcotics Division, Houston Police Department and the USMS. Assistant United States Attorneys Mark E. Donnelly and Tim S. Braley are prosecuting.
San Gabriel Valley Teacher Indicted for Child Exploitation OffensesRead the Press Release
LOS ANGELES -- A teacher at Royal Oak Middle School in Covina, who was arrested last month following an undercover sting in his classroom, was indicted today for child exploitation offenses.
John David Boyle, 49, of Glendora, who is detained pending trial based on a Court finding that he is a danger to the community, has been charged in a six count indictment. The indictment charges Boyle with enticement of a minor to engage in criminal sexual activity over the Internet, which allegedly resulted in the molestation of a 14-year-old boy. Boyle has also been charged with advertisement of child pornography on the Internet, as well as distribution, receipt, attempted receipt, and possession of child pornography.
“Crimes against children violate the most vulnerable among us,” said United States Attorney André Birotte Jr. “This case demonstrates the need for constant vigilance - both online and in our schools – to protect our children and preserve our future generations.”
After communicating with a U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agent in an Internet chat room, the teacher invited the agent -- who had been acting in an undercover capacity -- to meet on school premises to view and trade child pornography.
According to the indictment and complaint in this matter, during the course of HSI's investigation, Boyle is alleged to have engaged in online chats with an undercover agent, believing that the agent shared his sexual interest in young boys. Boyle then set up an in-person meeting in his middle school classroom on Sunday, June 2, 2013, for the purpose of engaging in sexual activity while watching child pornography. When the undercover agent arrived for the meeting and presented Boyle with what he believed was a thumb drive containing child pornography, Boyle took possession of it. At that time, additional HSI agents entered the classroom, interviewed Boyle, and seized his digital devices containing alleged child pornography. Shortly thereafter, Boyle was arrested and charged in a criminal complaint with distributing child pornography. Upon further investigation, HSI agents were able to identify a 14-year-old boy victim of Boyle's unlawful sexual contact -- as alleged in Count One of the Indictment.
“We entrust teachers to serve as role models for our children and safeguard their welfare,” said Claude Arnold, Special Agent in Charge for HSI Los Angeles. “HSI is particularly vigorous in pursuing these kinds of cases because our experience has shown that, in many instances, those who collect and distribute child pornography are also hands-on offenders.”
Boyle is due in court on Tuesday, July 11, 2013 for his post-indictment arraignment. If convicted of the charges in the Indictment, Boyle faces a maximum possible penalty of life in prison.
Anyone with information about this matter is encouraged to call HSI's toll-free tip line at 1-866-DHS-2ICE (1-866-347-2423) or submit information using HSI's online tip form at http://www.ice.gov/exec/forms/hsi-tips/tips.asp.
A criminal complaint and Indictment contain allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The investigation into Boyle is being conducted by HSI and the Internet Crimes Against Children ("ICAC") Task Force.
Release No. 13-092
San Fernando Valley Woman Sentenced to 5 Years in A Multi-Million Dollar Real Estate Ponzi SchemeRead the Press Release
LOS ANGELES - A San Fernando Valley real estate agent and self-described real estate investor was sentenced yesterday afternoon to five years in federal prison and remanded into custody for her offenses.
Celia Gallardo, 42, of North Hills, was sentenced in the fraud case by United States District Court Judge Dean D. Pregerson.
During the sentencing hearing, Judge Pregerson described the fraud as a "pure rip off" and cited the need for punishment as a deterrent. He stated that the victims present at the sentencing had the right to see Gallardo be remanded into custody.
Gallardo pleaded guilty in October 2012 to wire fraud, admitting in court that that she defrauded investors from September 2007 through September 2008 by falsely promising them high rates of return for investing in her purported real estate program.
Gallardo admitted that instead of investing victims' money in real estate transactions, she spent the vast majority of the money on house payments, foreign luxury travel, cash withdrawals, and Ponzi-syle payments to earlier investors.
Judge Pregerson also ordered Gallardo to pay $2.389 million in restitution to dozens of victims, who primarily resided in California and Arizona.
The case against Gallardo resulted from an investigation conducted by the Federal Bureau of Investigation.
Release No. 13-091
Richland County Man Indicted on Methamphetamine Related ChargesRead the Press Release
Lafe A. Willis, 28, of Olney, IL, was indicted on June 18, 2013, on methamphetamine related charges in an Indictment returned by a Federal Grand Jury sitting in East St. Louis, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Willis was charged in a two count indictment. Count 1 charges that from on or about January 2011, to on or about December 2012, in Richland County, Illinois, Willis conspired with others known and unknown to the Grand Jury, to knowingly and intentionally possess pseudoephedrine, knowing and having reasonable cause to believe that the pseudoephedrine would be used to manufacture methamphetamine. Count 2 charges that from on or about July 24, 2009, to on or about May 14, 2013, in Richland County, Willis did knowingly and intentionally possess pseudoephedrine, knowing and having reasonable cause to believe that the pseudoephedrine would be used to manufacture methamphetamine.
With respect to each count, Willis faces up to 20 years imprisonment, up to $250,000 fine, and up to 3 years supervised release to follow incarceration.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Richland County Sheriff’s Department.
The case is being handled by Assistant United States Attorney George Norwood.
Pittsburgh Man Admits Receiving Packages of Cocaine Mailed from CaliforniaRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh resident pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Richard Hayes, 32, pleaded guilty to one count before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that on Feb. 23, 2011, U.S. postal inspectors in Pittsburgh executed a search warrant for a suspicious package mailed from Rialto, Calif., to Pittsburgh, which contained in excess of 20 pounds of marijuana. When Hayes attempted to pick up the package, he was arrested. Inside his wallet, agents found two receipts for other packages mailed from Rialto to Pittsburgh one day earlier.
On Feb. 24, 2011, inspectors located one of the other packages, secured a search warrant, and found 4½ kilograms (in excess of nine pounds) of cocaine inside. The wholesale value in Pittsburgh of nine pounds of cocaine would be between $160,000 - $180,000, with a retail or "street" value likely exceeding a half million dollars.
Judge McVerry scheduled sentencing for Oct. 10, 2013. The law provides for a total sentence of not less than five years to a maximum of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory J. Nescott is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation that led to the prosecution of Richard Hayes.
Palm Beach County Man Sentenced in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula A. Reid, Special Agent in Charge, U.S. Secret Service (USSS), and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that defendant Fednol Pierre, 34, of West Palm Beach, was sentenced today to 34 months in prison, to be followed by 3 years of supervised release. Pierre was also ordered to pay $83,450.74 in restitution to the victims of his offenses. Pierre previously pled guilty to one count of theft of government money and one count of aggravated identity theft.
According to documents filed in court, on September 29, 2009, Pierre added an individual as a joint account holder to his bank account, without this individual’s knowledge or consent, using this individual’s name, Social Security number, date of birth, and driver’s license number. The following day, Pierre deposited a $22,081 tax refund check from the U.S. Treasury in the name of this individual. In the weeks following this deposit, Pierre withdrew funds from the joint account. On December 3, 2009, Pierre closed the joint account and transferred the remaining funds into his account.
Mr. Ferrer thanked USSS and IRS-CI for their work on the case. The case is being prosecuted by Assistant U.S. Attorney Benjamin C. Coats.
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.
Operation Stolen Dreams Defendant Sentenced to Federal Prison for Role in Mortgage Fraud SchemeRead the Press Release
In San Antonio, 46-year-old Robert Brooks, of Lantana, TX, was sentenced to 135 months in federal prison followed by five years of supervised release and ordered to pay approximately $8.5 million restitution for his role in a mortgage fraud operation involving a series of “property flip” schemes announced United States Attorney Robert Pitman; Armando Fernandez, Special Agent in Charge of the Federal Bureau of Investigation, San Antonio Division; and, Steve McCullough, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation in San Antonio.
On January 29, 2013, a federal jury convicted Brooks of one count of conspiring to commit bank, wire and mail fraud, eight counts of mail fraud and two counts of aiding the filing of false income tax returns.
Evidence presented during trial revealed that 20 individuals, under the direction of Robert Brooks, participated in a mortgage fraud scheme from May 17, 2005, until February 21, 2008, whereby Brooks purchased properties at fair market value then resold at an artificially inflated price to straw purchasers. Brooks recruited his co-defendants–appraisers, loan processors, title company employees, straw purchasers, etc.–and provided them with kickbacks from loan proceeds for their participation in the scheme. Evidence also revealed that Brooks used the proceeds from the purported sales to various nominees to pay for his initial purchase of real estate, to pay closing costs for both his purchase and sale to the nominee, to pay the nominee’s down-payment, to pay the nominee for the nominee’s participation, and to pay the mortgage for the first 12 months, after which each mortgage went into default. Brooks’ mortgage loan scheme involved over 40 properties primarily located in the Dallas area and defrauded financial institutions in Dallas, Austin, San Antonio and Houston of over $20 million. Jurors also found that Brooks caused the submission of false 2007 income tax returns for himself and his wife, and for a partnership, which contained a false business expense.
Brooks is the only defendant in this case to be sentenced; 14 are awaiting sentencing after entering guilty pleas; and, seven are still pending trial. This case resulted from an investigation by agents from the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney William R. Harris is prosecuting this case on behalf of the government.
Operation Stolen Dreams was organized by President Obama’s interagency Financial Fraud Enforcement Task Force, which was established to lead an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. 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.
Omaha Woman Sentenced for Bank FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that Toni R. Walker, 54, of Omaha, Nebraska, was sentenced by the Honorable Richard G. Kopf, United States District Judge, to 36 months imprisonment for her conviction for bank fraud. Following Ms. Walker’s release from incarceration, she will be placed on five years of supervised release. She was also ordered to pay $765,236.82 in restitution.
Ms. Walker had been the business manager for Royal Forwarding, Inc. since about 1998. From April 2005 to March, 2012, Ms. Walker forged and deposited into her own bank account a total of 169 Royal Forwarding checks which ranged in amount from about $2,000 to about $9,000. The total for all the checks is $765,236.82.
This case was investigation by the Sarpy County Sheriff’s Office and the Federal Bureau of Investigation.
New Kensington Man Sentenced to Prison for Possessing Sexual Images of ChildrenRead the Press Release
PITTSBURGH, Pa. - A resident of Westmoreland County has been sentenced in federal court to 28 months imprisonment, to be followed by 10 years of supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on James Robert Gilmore, Jr., 27.
According to information presented to the court, on or about April 27, 2012, Gilmore possessed visual depictions, namely, images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Pennsylvania State Police, and the Allegheny County Police for the investigation leading to the successful prosecution of Gilmore.
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.justice.gov/psc.
Nampa Man Sentenced for Possessing Sawed-off ShotgunRead the Press Release
BOISE – Safet Miljkovic, 34, of Nampa, Idaho, was sentenced today in United States District Court to 37 months in prison followed by three years of supervised release for possessing an unregistered firearm, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Miljkovic to forfeit the firearm.
On April 11, 2013, Miljkovic pleaded guilty to count one of the indictment filed on December 11, 2012. At the hearing, Miljkovic admitted that on July 25, 2012, he knowingly possessed a 12-gauge slide-action shotgun with a barrel measuring less than 18 inches in length. Miljkovic’s possession of the firearm was unlawful because it was a sawed-off shotgun and was not registered to him in the National Firearms Registration and Transfer Record.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Multi-Kilogram Cocaine Trafficker Enters Guilty PleaRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announces that Bertin Rivera, age 43, of Lumber City, Georgia, entered a plea of guilty today to conspiring to possess with the intent to distribute 382 kilograms of cocaine. The plea was entered in the United States District Court in Macon, Georgia, before the Honorable C. Ashley Royal.
As part of his guilty plea, Rivera stipulated that on September 12, 2012, he orchestrated the shipment of 382 kilograms of cocaine from a warehouse in Atlanta, Georgia to his residence in Lumber City, Georgia. The drugs were concealed in boxes of tomatoes. Federal and local authorities executed a search warrant at the residence. The search uncovered 191 kilograms of cocaine inside the tomato boxes and 191 kilograms buried in a plastic container on land adjacent to Rivera’s property. The wholesale value of the drugs is estimated to be ten million dollars.
Rivera faces a maximum statutory penalty of a mandatory minimum of ten years up to a maximum of life in prison without parole. Sentencing is expected to take place on September 17, 2013.According to the United States Attorney, this is the largest single seizure of cocaine in the district in the last 20 years.
“Taking drugs off the street and putting drug dealers in jail remains a top priority for us. The people of Middle Georgia should feel good that the 191 kilograms of cocaine that were seized will never make it into the hands of our children,” said U.S. Attorney Michael Moore.
The case was investigated by the DEA, Department of Homeland Security, and the Lumber City Police Department. The case was prosecuted by Assistant United States Attorney Charles L. Calhoun.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Montgomery County Crack Dealer Sentenced to 20 Years in PrisonRead the Press Release
Frequently Distributed Crack in Grocery Stores, Restaurants and Other Public Places
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Kevin Anthony Walker, age 43, of Germantown, Maryland, today to 20 years in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute crack cocaine. Judge Titus also ordered Walker to pay a fine of $7,000, and to forfeit $5,800 in cash and jewelry seized from his residence on December 9, 2011, as well as two vehicles.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to Walker’s guilty plea, he was part of a conspiracy to distribute crack cocaine in and around Germantown, Maryland, from April 2011 through November 10, 2011. During the conspiracy, Walker purchased powder cocaine from sources of supply, which he then converted into crack cocaine. Walker had co-conspirators drive him to distribute crack cocaine to his customers, often in public places like grocery stores, drug stores, and fast food restaurants. To further his drug trafficking, Walker had others put apartments and automobiles in their names for Walker’s use. During the conspiracy, law enforcement intercepted calls to and from one of Walker’s cell phones and overheard Walker on a number of occasions arranging to purchase powder cocaine, to distribute crack cocaine and directing others to distribute crack on his behalf.
On December 9, 2011, law enforcement executed a search warrant at Walker’s residence and recovered 152 grams of crack cocaine, six grams of powder cocaine, drug paraphernalia, drug ledgers, and $5,800 in cash. Law enforcement also seized three watches, two rings, a bracelet, and a necklace appraised at $27,000, all of which were purchased with drug proceeds.
United States Attorney Rod J. Rosenstein commended the DEA and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Deborah A. Johnston and Mara Zusman Greenberg, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Minnesota Man Pleads Guilty to Engaging in a Sex Trafficking ConspiracyRead the Press Release
The Justice Deparment announced today that Andre James Hertzog, 29, of St. Paul, Minn. pleaded guilty to participating in a sex trafficking conspiracy. Hertzog pleaded guilty in U.S. District Court for the District of Minnesota.
During his plea hearing, Hertzog admitted that from April 2011 to August 2012, he and a co-conspirator, Nicole Bramer, of St. Paul, Minn., engaged in a scheme to recruit two young women and compel them to engage in commercial sex acts. Working together, Hertzog and the co-conspirator used coercive tactics, including physical violence and psychological coercion, to isolate the victims and cause them to engage in commercial sex acts. Hertzog further admitted that his co-conspirator transported the older victim across state lines for the purpose of having her engage in commercial sex acts in July 2011, and that he and the co-conspirator transported the younger victim across state lines for the purpose of having her engage in commercial sex acts in July and August of 2012. The defendant admitted he knew that the co-conspirator used her computer to advertise the commercial sex services of one of the victims on the website backpage.com.
At sentencing, Hertzog faces a maximum penalty of up to life in prison on the sex trafficking conspiracy charge.
On May 29, 2013, the co-defendant, Nicole Bramer, pleaded guilty to participating in the sex trafficking conspiracy. Bramer also faces a maximum penalty of up to life in prison on the sex trafficking conspiracy charge.
“The defendants preyed upon vulnerable young women and used violence, threats, and psychological intimidation to exploit the victims and coerce them into prostitution ,” said Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division. “The department of Justice is committed to prosecuting those who sexually exploit vulnerable women for financial benefit. I also would like to commend the FBI for its strong commitment to this effort and for its outstanding work in this case.”
“Human Trafficking often victimizes the most vulnerable among us. The FBI remains fully committed to bringing to justice those who engage in this heinous crime,” said FBI Special Agent in Charge J. Chris Warrener.
The is being investigated by the Minneapolis Field Office of the FBI and prosecuted jointly by Special Assistant U.S. Attorney Mark Kappelhoff, Trial Attorney Christine M. Siscaretti and Amanda Gregory of the Department of Justice, Civil Rights Division.
Anyone who may have information about this or any other human trafficking matter is encouraged to report that information to the Federal Bureau of Investigation at 763-569-8000. For information about human trafficking, the National Human Trafficking Resource Center’s toll-free hotline (1-888-373-7888) is available to answer calls from anywhere in the country.