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Monday 20 May 2013
Duluth Man Indicted for the Sex Trafficking of A ChildRead the Press Release
MINNEAPOLIS—A federal indictment unsealed late today charges a 32-year-old Duluth man with the sex trafficking of a child for approximately seven months last year. The indictment, which was filed on May 7, 2013, charges Markeace Arque Canty with one count of conspiracy to commit sex trafficking of a child, one count of sex trafficking of a child, and one count of receipt of child pornography. The indictment was unsealed following Canty’s initial appearance in federal court this afternoon.
The indictment alleges that from at least July 2012 through January 2013, Canty recruited, transported, and coerced the female victim, who was under the age of 18 at the time, to engage in commercial sex acts, from which Canty benefitted financially. Canty purportedly purchased “escort” advertisements on the website known as backpage.com and transported the female victim to locations in Duluth, Minneapolis, and elsewhere to meet advertisement responders at motels, where the victim engaged in sexual acts in exchange for money. Specifically, on September 12, 2012, law enforcement in Indiana responded to one of the advertisements and arrested the female victim after she reportedly agreed to perform sex acts in exchange for money. The advertisement in that instance purportedly included a phone number registered to Canty. The indictment also alleges that Canty attempted to arrange for the female victim’s release from jail after she was arrested on state prostitution charges.As to the charge of receipt of child pornography, the indictment states that on January 15, 2013, Canty received visual depictions via a computer of a minor engaged in sexually explicit conduct.
If convicted, Canty faces a potential maximum penalty of life in prison on each of the sex trafficking counts and ten years on the charge of receipt of child pornography. Any sentences would be determined by a federal district court judge.
This case is the result of an investigation by the Federal Bureau of Investigation and the Duluth Police Department, with cooperation from U.S. Customs and Border Protection, the St. Louis County Attorney’s Office, the Fargo and Grand Forks, North Dakota, police departments, the Grand Forks County Sheriff’s Office in North Dakota, the Eau Claire, Wisconsin, police department, and the Porter County Sheriff’s Office in Indiana. It is being prosecuted by Assistant United States Attorney Thomas Calhoun-Lopez.
In 2012, Yuri Fedotov, the head of the United Nations’ Office on Drugs and Crime reported to those attending a U.N. General Assembly meeting that an estimated 2.4 million people worldwide are victims of human trafficking at any one time, with 80 percent of them being exploited as sex slaves. He also stated that approximately $32 billion is earned collectively every year by the criminals who operate human trafficking networks. The U.S. Department of Justice estimates that 14,500 to 17,500 people are trafficked within the U.S. alone each year.
For more information, visit http://www.fbi.gov/about-us/investigate/civilrights/human_traffickingAn indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
District Man Sentenced to Four Years in Prison for Armed Robbery, Admitted Stealing Dog at Gunpoint-Defendant Told Victim: “Yorkies Cost A Lot of Money”-Read the Press Release
WASHINGTON – Christopher Young, 18, of Washington, D.C., was sentenced today to a four-year prison term on a charge of armed robbery stemming from an attack in which he stole a dog from a woman at gunpoint, U.S. Attorney Ronald C. Machen Jr. announced.
Young pled guilty in March 2013 in the Superior Court of the District of Columbia. He was sentenced by the Honorable Robert I. Richter. Upon completion of his prison term, Young will be placed on five years of supervised release.
According to the government’s evidence, on Jan. 5, 2013, at about 10:35 a.m., Young approached a woman who was walking her Yorkshire Terrier in the area of Fifth and Kennedy Streets NE. Young displayed a handgun and said, “Give me your dog. Yorkies cost a lot of money.” He then grabbed the victim’s dog and ran toward Chillum Place NE.
The victim, who yelled for help, noticed that Young dropped his phone on Kennedy Street directly next to where the dog’s leash had dropped. While Young continued running, the dog escaped and ran to its home. Officers with the Metropolitan Police Department (MPD) determined that the dropped phone belonged to Young, and learned that he had a GPS device on his ankle. Police obtained Young’s GPS records, which placed him directly in the area of 5th and Kennedy at the time of the robbery as well as in the flight path described by witnesses.
In announcing the sentence, U.S. Attorney Machen commended those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Debra McPherson and Assistant U.S. Attorney Natalia Medina, who prosecuted the case.
13-177Detroit man pleads guilty to money laundering conspiracyRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Carl Faheem Muhammad, 32, of Detroit, Michigan, pleaded guilty to conspiring with others to launder over $183,000 before Chief U.S. District Court Judge William M. Skretny. Muhammad is scheduled to be sentenced on September 11, 2013. The charge carries a maximum penalty of 20 years in prison and a $500,000 fine.
According to Assistant U.S. Attorney Fauzia K. Mattingly, who is handling the case, Muhammad directed eight other Detroit area residents to receive payments from victims who had applied for loans over the Internet with seemingly legitimate financial lenders which were in fact virtual companies being operated by online scammers in Canada. After wire transfers from the victims were received in Detroit, Muhammad transported the funds to the scammers in Canada. The victims, some of whom were from Western New York, were led to believe that once they paid the up-front fees, they would receive the loan proceeds. The victims never received the loans or a refund of their payments. To date, defrauded victims have lost more than $3.5 million to the loan scheme, and approximately 2,700 victims of the fraud have been identified by law enforcement. A total of 21 people have been arrested in connection with this fraud scheme. The defendant is the fourth to be convicted.
Sentencing is scheduled for September 11, 2013 at 9:00 a.m. before Judge Skretny.
The plea is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge, James C. Spero.Defense Contractors Sentenced in North Island Bribery CaseRead the Press Release
United States Attorney Laura E. Duffy announced today that two individuals and a corporation were sentenced by U. S. District Judge Larry Alan Burns in federal court in San Diego, in connection with their participation in a fraud and corruption scheme at Naval Air Station (NAS) North Island, in Coronado, California. The three defendants were Robert Ehnow, the owner and President of Poway defense contractor L&N Industrial Tool & Supply Inc. (“L&N”); Joanne Loehr, the owner and President of Poway defense contractor Centerline Industrial Inc. (“Centerline”); and Centerline itself, a California corporation.
According to court records, during the course of the conspiracy, the Department of Defense paid Ehnow’s company, L&N, over $3 million. Centerline obtained over $1.8 million in payments from the Defense Department during the conspiracy. A third defense contractor, X&D Supply, Inc. (“X&D”), located in Carlsbad, California, was paid over $2 million during the conspiracy.
For his role in the corruption scheme, Ehnow was sentenced to serve 36 months in federal prison and was ordered to pay $759,937 in restitution to the United States Department of the Navy. Loehr was sentenced to serve 36 months in federal prison and was ordered to pay $300,000 in restitution to the Navy. Centerline was sentenced to a term of five years of probation and was ordered to forfeit $1,809,257 as proceeds of the scheme. Ehnow and Loehr were also sentenced to serve, upon their release from prison, three years of supervised release.
The three defendants were charged in an indictment with one count of engaging in a conspiracy to commit wire fraud, bribery, and money laundering, and with additional counts of bribery. The case was tried before a San Diego jury beginning on February 20, 2013. On March 4, 2013, after two days of deliberations, the jury returned guilty verdicts for each defendant as to the conspiracy count, and as to one or more bribery counts. The jury also acquitted each defendant on one or more bribery counts.
The evidence presented at trial showed that as part of the conspiracy, defense contractors provided Navy officials with a wide range of personal benefits, including cash, checks, retail gift cards, flat screen television sets, luxury massage chairs, bicycles costing thousands of dollars, model airplanes, and other items. In return, the Navy officials placed millions of dollars in government orders with the defense contractors.
Additionally, the defense contractors prepared and submitted fraudulent invoices to the Department of Defense, making it appear that they were billing the Department for goods and services within the scope of legitimate government contracts. In fact, the Defense Department was unknowingly paying for, among other things, the cost of bribes provided to the Navy officials. Compounding the cost of the fraud, the defense contractors also routinely charged a markup on the fraudulent invoices.
The defendants also engaged in money laundering by using L&N’s government contract to fraudulently bill the Navy for items that were never supplied. Then, at the request of Navy co-conspirators, Ehnow wrote checks passing along the criminal proceeds to Centerline and Loehr, keeping a portion for itself as compensation for serving as a conduit for the criminal proceeds.
L&N, also known as Mardoc Corporation, filed for Chapter 7 bankruptcy in June 2011. Centerline remains in business.
Today’s sentences bring to eleven the total number of defendants sentenced in connection with this scheme. Of the eight individuals previously convicted, five were Navy officials: Donald Vangundy, Kiet Luc, David Lindsay, Brian Delaney - all four of whom worked in the Navy's "E2/C2" aircraft program, which is dedicated to maintaining the tactical readiness of the Navy’s E-2 and C-2 aircrafts – and Kenneth Ramos, who worked in North Island’s Industrial Business Operations Department. These five former Navy officials admitted to receiving a total of more than $1 million in cash, goods, and services for their personal use, all fraudulently charged to and paid for by the Department of Defense in connection with this fraud and bribery scheme.
The other four defendants previously convicted were owners or sales managers of San Diego-area defense contracting firms: John Newman was the sales manager of L&N, Paul Grubiss was the sales manager of Centerline, Michael Graven was the owner and operator of X&D, and Jesse Denome was the owner and operator of JD Machine Tech Inc.
According to United States Attorney Duffy, the investigation into possible corruption at Naval Air Station North Island was initiated on the basis of citizen complaints. These complaints followed the July 2009 indictment of six individuals on fraud and corruption charges centered at the Space and Naval Warfare Systems Command (SPAWAR). As part of the SPAWAR corruption case, the government publicized a hotline dedicated to the reporting of possible waste, fraud, and abuse related to government and military contracts. U.S. Attorney Duffy noted that the investigation is ongoing and anyone with information relating to waste, fraud, and abuse in government contracting is urged to contact the Procurement Fraud Working Group hotline at: [email protected] or call 1-877-NOBRIBE.
U.S. Attorney Duffy stated, “These defense contractors told lies, and gave bribes, to get millions of dollars in business from the United States Navy. The sentences handed down today send a message that this corruption will not be tolerated.”
Chris D. Hendrickson, Special Agent in Charge for the Defense Criminal Investigative Service, Western Field Office added, “DCIS and our law enforcement partners will continue to aggressively pursue corruption investigations involving the operations of the DoD. Abusing the public trust has serious consequences and severe punishment is appropriate for stealing resources from our soldiers, sailors, airmen, marines and the American taxpayer.”
Jose A. Gonzalez, Special Agent in Charge of IRS Criminal Investigation’s (CI) Los Angeles Field Office commented, “Robert Ehnow’s and Joanne Loehr’s bribery of trusted naval officials of more than $1 Million in cash and other gifts, had the potential to erode the public’s basic trust in our economic system. Instead, the initial citizen complaint which led to the investigation and Ehnow’s and Loehr’s subsequent conviction, confirm the public’s refusal to tolerate criminal corruption by our public officials. Today’s sentencing brings Robert Ehnow and Joanne Loehr to justice and confirms IRS CI’s assurance to investigate fraud, corruption and money laundering crime by public officials.”
David House, Special Agent in Charge, Pacific Rim Region Office of Investigations for the General Services Administration Office of Inspector General, said, “The General Services Administration is the gateway for Federal procurement and is committed to promoting fair and honest competition among contractors. The GSAIG is committed to preserving the integrity of the Federal procurement process; bribery and kickbacks corrupt that process and will not be tolerated.”
DEFENDANTS Case Number: 12cr3320H Robert Ehnow
Joanne Loehr
Centerline Industrial Inc., a California corporation SUMMARY OF CHARGES IN CASE NO. 12CR3320-LABCount 1: Conspiracy to commit bribery, in violation of Title 18, United States Code, Section 371 (all
defendants) - Maximum penalties: 5 years in prison, $250,000 fine, term of supervised release of three years, restitution, forfeiture, and $100 special assessment. (All defendants found guilty on Count One.)Counts 2 to 7: Bribery, in violation of Title 18, United States Code, Section 201 (defendant Ehnow) - Maximum penalties (per count): 15 years in prison, $250,000 fine, term of supervised release of three years, restitution, and $100 special assessment. (Defendant Ehnow found guilty on Count Seven, not guilty on Counts Two through Six)
Counts 8 to 12: Bribery, in violation of Title 18, United States Code, Section 201 (defendants Loehr and Centerline) - Maximum penalties (per count): 15 years in prison, $250,000 fine, term of supervised release of three years, restitution, and $100 special assessment. (Defendants Loehr and Centerline found guilty on Counts Ninth through Twelve, not guilty on Count Eight)
Case Number: 12-CR-4071-LAB Sentenced on March 4, 2012 Kenneth Paul Ramos Case Number: 12-CR-1055-LAB Sentenced on September 10, 2012 Donald Vangundy
Kiet Luc
Brian Delaney
David Lindsay
John Newman
Michael Graven
Paul Grubiss Case Number: 10-CR-3737-LAB Sentenced on October 12, 2011 Jesse Denome INVESTIGATING AGENCIESFederal Bureau of Investigation
Defense Criminal Investigative Service
Internal Revenue Service - Criminal Investigation
General Services Administration - Office of Inspector General
Naval Criminal Investigative ServiceDefense Contractor Sentenced for Stealing Medical Equipment Intended for Deployed MarinesRead the Press Release
United States Attorney Laura E. Duffy announced that a Camp Pendleton defense contractor was sentenced today for his role in a scheme involving the theft of costly medical equipment that the military had planned to ship overseas to treat injured Marines.
In today’s court hearing, U.S. District Judge Cathy Ann Bencivengo sentenced Michael Tuisee to serve 6 months in prison, followed by 6 months of house arrest with GPS monitoring, and 3 years of supervised release. Judge Bencivengo also ordered Tuisee to forfeit $8,250 in illegal proceeds and pay $179,698.50 in restitution to the U.S. Marine Corps.
According to court records, Tuisee and his two co-conspirators worked in warehouses run by 1st Medical Logistics Company (“1st MEDLOG”) aboard Camp Pendleton. 1st MEDLOG is the unit responsible for maintaining medical equipment and shipping necessary medical items to combat forces throughout the world. By virtue of his employment as a civilian defense contractor, Tuisee had unfettered access to sophisticated medical equipment stored at 1st MEDLOG warehouses. Prior to sentencing, Tuisee admitted that he conspired to steal expensive medical equipment from 1st MEDLOG, including ventilators, autoclaves, defibrillators, headlights, and laryngoscopes. Tuisee repeatedly stole these costly medical items, loaded them into his personal vehicle, and surreptitiously sold them to medical equipment resellers – often meeting with buyers during nighttime rendezvous in secluded parking lots.
During today’s sentencing, Judge Bencivengo told Tuisee he abused his position and breached the Government’s trust when he stole military medical equipment and sold it for personal profit. U.S. Attorney Duffy echoed those sentiments, noting that she will continue to “vigorously investigate and prosecute those who seek profit at the expense our men and women in uniform.” Duffy reminded the public that these charges were the result of ongoing efforts to root out corruption among our area defense contractors. She encouraged the public to contact the Naval Criminal Investigative Service (NCIS) at 1- 800-264-6485 or www.ncis.navy.mil if they have any information relevant to the ongoing investigation into theft of medical equipment at Camp Pendleton.
DEFENDANT Case Number: 13cr0338-CAB Michael Tuisee SUMMARY OF CHARGESCount 1: Conspiracy to Engage in Theft of Government Property, Title 18, United States Code, Section 371 (all defendants)
INVESTIGATING AGENCYNaval Criminal Investigative Service
Davenport Man Sentenced to 25 Years in Prison for Conspiracy to Distribute Cocaine BaseRead the Press Release
DAVENPORT, IA – On May 17, 2013, Mauriosantana Paul Cowan, age 40, was sentenced to 300 months imprisonment for conspiracy to distribute 280 grams or more of cocaine base, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge Stephanie M. Rose also sentenced Salinas to ten years of supervised release following the imprisonment.
From at least March 2009 and continuing until April 26, 2010, Cowan conspired with others to distribute large amounts of cocaine base. Cowan purchased cocaine base in Chicago from various sources and then redistributed these drugs to various individuals in the Quad Cities. Cowan purchased cocaine base in multiple ounce to half kilogram quantities and made deliveries in Davenport, Iowa, approximately every other week over a six month period.
This case was investigated by the Drug Enforcement Agency and the Davenport, Iowa, Police Department, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
DBSI Principals Plead Not Guilty to Securities Fraud, Wire Fraud, Mail Fraud, Bank Fraud and ConspiracyRead the Press Release
BOISE – Mark A. Ellison, 64, of Boise, Idaho; David D. Swenson, 35, of Boise, Idaho; and Jeremy Snow Swenson, 40, of Meridian, Idaho, appeared today in United States District Court and entered pleas of not guilty on a Superseding Indictment charging them with conspiracy to commit securities fraud, wire fraud, mail fraud, and interstate transportation of stolen property stemming from their involvement in the DBSI Group of Companies (DBSI), U.S. Attorney for the District of Idaho Wendy J. Olson announced. The case was set for a jury trial to commence on June 24, 2013, before Chief United States District Judge B. Lynn Winmill.
Mark Ellison founded DBSI along with Douglas Swenson who is also charged and previously pled not guilty to the indictment. Ellison served as DBSI’s general counsel during the period charged in the indictment. David D. Swenson and Jeremy Snow Swenson were assistant secretaries for DBSI. Founded in 1979 and headquartered in Meridian, Idaho, DBSI was essentially a conglomerate of real estate and non-real estate companies, including DBSI Housing and DBSI Securities.
According to the Superseding Indictment, from January 2007 through November 2008, the defendants publicly represented that DBSI was a profitable company and had a net worth in excess of $105 million. The indictment further alleges that the defendants knew and believed that, contrary to the disclosures made to investors and their own DBSI employees involved with the marketing and selling of DBSI investments, DBSI’s real estate and non-real estate business activities were universally unprofitable; DBSI’s much-touted Master Lease investment product was losing approximately $3 million dollars a month; and DBSI was relying on new investor funds, including investor money that DBSI represented would only be used in particular circumstances, to continue operations and pay returns to other DBSI investors. The indictment alleges that the conspiracy continued until DBSI filed for bankruptcy in November 2008. The 89 count Superseding Indictment also charges all of the defendants with 44 counts of securities fraud, 34 counts of wire fraud, six counts of interstate transportation of stolen property taken by fraud, and two counts of bank fraud. The defendants are also charged with conspiracy to commit money laundering.
Based on the conspiracy and fraud charges, the Superseding Indictment seeks forfeiture of properties and assets totaling $169 million.
The conspiracy to commit securities fraud, wire fraud, mail fraud and interstate transportation of stolen property charge is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. The conspiracy to commit money laundering charge is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to five years of supervised release. The securities fraud charges are each punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. The wire fraud charges are each punishable by up to 20 years in prison, a maximum fine of $250,000, and up to five years of supervised release. The bank fraud charges are each punishable by up to 30 years in prison, a maximum fine of $1 million, and up to five years of supervised release. The interstate transportation of stolen property charges are each punishable by up to ten years in prison, a maximum fine of $250,000, and up to one year of supervised release. The false statement charge is punishable by up to two years in prison, a maximum fine of $250,000, and up to one year of supervised release.
The case was investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation. The case is being prosecuted by Assistants United States Attorney George Breitsameter and Anthony Hall, and Department of Justice Tax Division Trial Attorney Mark Williams.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Colleyville, Texas, Man Sentenced to 18 Months in Federal Prison and Fined $30,000 on Income Tax Evasion ConvictionRead the Press Release
Defendant Norvell Moss a Licensed Pharmacist at Grapevine DrugMart
FORT WORTH, Texas — Norvell Moss was sentenced on Friday by U.S. District Judge John McBryde to 18 months in federal prison and ordered to pay a $30,000 fine and additional restitution of $8,277, to go along with the more than $94,000 he paid prior to sentencing, following his guilty plea in January 2013 to one count of income tax evasion. Judge McBryde ordered Moss to surrender to the Bureau of Prisons on June 7, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the felony Information filed in the case, Moss is a resident of Colleyville, Texas. The factual resume states that Moss is a licensed pharmacist and works as the head pharmacist for Grapevine Drug Mart, a family-owned and operated pharmacy in Grapevine, Texas.
The stipulated facts included in the factual resume note that Moss received quarterly and weekly payment of income drawn on Grapevine Drug Mart’s business accounts. The quarterly payments, generally received three to five times per year, varied in amounts ranging from $20,000 to $100,000. These payments were made payable to Mossman Management, dba Moss established in Tarrant County, and deposited into Mossman Management’s business bank account. The weekly payments (checks) were much smaller and were made payable to Moss or Mossman Management. From October 2006 through December 2008, Moss cashed the weekly checks.
The factual resume further stipulates that Moss willfully attempted to evade the amount of income tax he owed for tax year 2008 by failing to report approximately $194,150 that he received from Grapevine Drug Mart for that year. As a result of not reporting all of his income received, Moss had an additional tax due and owing of $58,233 for that year.
According to the public court record, two other defendants affiliated with Grapevine Drug Mart were recently convicted in the Northern District for tax-related felony offenses. Larry Lake, also a Colleyville resident and a part-owner of Grapevine Drug Mart, was convicted by a federal jury in Fort Worth in February 2013 on concealment of assets (bankruptcy fraud) and three counts of tax evasion. His son, Travis Lake, who managed Grapevine Drug Mart, pleaded guilty that same month to an indictment charging three counts of fraud and false statements in connection with tax returns he filed for tax years 2006, 2007 and 2008. Both Larry Lake and Travis Lake are awaiting sentencing.
The cases were investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Brian Poe and Tax Division Trial Attorney Robert A. Kemins are in charge of the prosecutions.
Coldspring Man Charged in Death of U.S. Postal Service WorkerRead the Press Release
HOUSTON – James Wayne Ham, 36, of Coldspring, was arrested Sunday and charged today with the murder of a mail carrier with the United States Postal Service (USPS), United States Attorney Kenneth Magidson announced today along with Inspector in Charge Robert Wemyss, United States Postal Inspection Service (USPIS).
“The safety of our workforce and, ultimately, the surrounding communities is of paramount concern to me and this office.” said Magidson. “The killing of a Postal Service worker in the course of his/her official duties is a crime that affects us all. Anyone who is believed to have committed a crime against an employee of the United States will be prosecuted to the fullest extent of the law.”
The complaint was filed just minutes ago in federal court in Houston. Ham is expected to make an initial appearance before U.S. Magistrate Judge Nancy Johnson tomorrow morning, at which time the government is expected to request he be held without bond pending further criminal proceedings.
“The USPIS takes very seriously any threats or violent acts committed against Postal Service employees,” said Wemyss. “We will work vigorously in conjunction with other law enforcement agencies to ensure responsible individuals are brought to justice and held accountable.”
The investigation began shortly following the receipt of a 911 call from the son of a USPS worker on Friday, May 17. He indicated he had been speaking with his mother via cell phone and heard two loud noises. His mother allegedly told him she had been shot. Shortly thereafter, the phone was disconnected, according to the complaint.
The complaint alleges the victim was shot on Friday shortly after delivering mail at Ham’s residence. The victim was on her normal rural delivery route in her personal vehicle. Ham allegedly shot her multiple times at close range with a .30/30 caliber rifle.
Ham then allegedly drove the vehicle to a nearby secluded area and set it on fire.
According to the complaint, the victim’s body was discovered Friday in her burning vehicle in San Jacinto County. Firefighters extinguished the flames and found the woman inside.
The investigation eventually led to Ham after it was discovered he had allegedly complained previously about not getting his mail delivered properly, according to the complaint.
Ham was located after an extensive manhunt and arrested without incident Sunday near his home in San Jacinto County.
If convicted, he could potentially face the death penalty.
The case is being investigated by the USPIS, San Jacinto County Sheriff’s Office, Texas Rangers, San Jacinto Constable Precinct 4, Texas Department of Criminal Justice, Montgomery County Sheriff’s Department, Texas Parks and Wildlife, San Jacinto County Fire Marshall and the San Jacinto County District Attorney’s Office. Also providing assistance was the Bureau of Alcohol, Tobacco, Firearms and Explosives and the volunteer fire departments in Point Blank and Cape Royale. Assistant United States Attorneys Ed Gallagher and Joe Magliolo are prosecuting.
Clinton Woman Sentenced to 21 Months Imprisonment for Tax OffensesRead the Press Release
DAVENPORT, IA – On May 17, 2013, Regina Jimenez, age 60, of Clinton, Iowa, was sentenced to 21 months imprisonment on two counts of filing false tax returns, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge Stephanie M. Rose also sentenced Jimenez to one year of supervised release and ordered her to pay $332,465.00 in restitution.
Jimenez operated AA Accounting & Tax Services, Inc. in Clinton, Iowa from approximately 2007 through 2011. Jimenez used the business to facilitate the theft of over $300,000 from a client who believed that Jimenez would use the money to pay the client’s taxes. Jimenez instead used the money for gambling expenditures, and did not report the stolen funds on her tax returns.
This case was investigated by IRS Criminal Investigation, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Carl Lee Glass Sentenced to 106 Months in Federal Prison for Cocaine and Firearms ChargesRead the Press Release
GREENEVILLE, Tenn. – On May 20, 2013, Carl Lee Glass, 33, of Unicoi, Tenn., was sentenced to serve 106 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge. Upon his release from prison, he will be subject to three years of supervised release.
Glass pleaded guilty in August 2012 to a conspiracy to distribute cocaine and possession of a firearm in furtherance of the trafficking of cocaine. He was the subject of an undercover investigation, where he was observed making numerous sales of cocaine. Because Glass possessed a firearm in furtherance of drug trafficking, he faced a minimum 60 month sentence, up to life, in prison for the firearm charge alone.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Glass included the Unicoi County Sheriff’s Department, Tennessee Highway Patrol and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Canby Man Sentenced to 140 Months in Federal Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
PORTLAND, Ore. – U.S. District Judge Marco A. Hernandez today sentenced Darrell Michael Ostlund, 33, of Canby, Oregon, to 140 months in federal prison for possession with intent to distribute methamphetamine. The sentencing follows Ostlund’s guilty plea on February 15, 2013.
This investigation began on April 9, 2012, when an Oregon State Police trooper stopped a car travelling 85 miles per hour in a 55 mile per hour zone, near Canby, Oregon. The defendant was a passenger in that car and a small safe near his feet contained methamphetamine and packaging material.
A warrant was issued when the defendant failed to appear on earlier charges and on June 15, 2012, Canby police detectives arrested Ostlund after seeing him with others at a Wilsonville motel. When he resisted arrest, defendant was subdued; officers found two hotel room keys in his possession. Subsequent searches of the hotel rooms found two large baggies of methamphetamine and $3,271 in currency. The federal indictment charging Ostlund with possession with the intent to distribute methamphetamine was returned on September 5, 2012.
On October 17, 2012, a Portland Police officer saw defendant in a southeast Portland apartment complex driving a suspected stolen car. Ostlund became agitated, and fled, only to be struck by a Taser. When Ostlund fell to the ground, the Taser prongs dislodged and he was able to flee, until a K-9 unit arrived. He was located hiding in the complex, and arrested. A search of his vehicle revealed a plastic box hidden under the hood, containing a large quantity of methamphetamine and $1,365 in currency.
Court records show the defendant first used marijuana at age 15, began using methamphetamine at age 17, and turned to cocaine at age 18. He was a 1998 graduate of Canby High School, where he played football all four years and was selected as an all-conference player his senior year. He had nine prior arrests and convictions and was on post-prison supervision abscond status at the time of his arrest in April, 2012.
The case was investigated by the Canby Police Department, Oregon State Police, Portland Police and the Marion County Probation Office. Assistant U. S. Attorney John Haub prosecuted the case.
Braddock Man Charged with Possession of Child PornographyRead the Press Release
PITTSBURGH - A resident of Allegheny County was indicted on May 7, 2013, by a federal grand jury in Pittsburgh on a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The one-count indictment, unsealed on May 17, named David Dzermejko, 64, of Braddock, Pennsylvania, as the sole defendant.
According to the indictment, on or about January 11, 2013, Dzermejko possessed visual depictions, namely, still images in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until 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, 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.
Armed Career Criminal Pleads Guilty to Unlawful Possession of AmmunitionRead the Press Release
ALBUQUERQUE – Jonathan Matthew Sandoval, 26, of Albuquerque, N.M., entered a guilty plea this morning to being a felon in possession of ammunition. Under the terms of his plea agreement, Sandoval will be sentenced to 15 years in federal prison. Sandoval’s guilty plea was announced by U.S. Attorney Kenneth J. Gonzales and Thomas G. Atteberry, Special Agent in Charge of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Sandoval pled guilty to Count 1 of a superseding indictment charging him with unlawfully possessing ammunition in Aug. 2011, in Bernalillo County, N.M. At the time, Sandoval was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony offenses in the 2nd Judicial District Court for the State of New Mexico, including four residential burglaries, an escape from community custody release program, and possession of a controlled substance. Sandoval also previously had been convicted of residential burglary in the 13th Judicial District Court for the State of New Mexico.
During today’s proceedings, Sandoval admitted possessing 30 cartridges of ammunition on Aug. 24, 2011, found in the trunk of his vehicle by law enforcement officers. Sandoval admitted telling the officers that the ammunition belonged to him and that he had purchased the ammunition at a shooting range.
Sandoval has been in federal custody since Dec. 2011, when he was transferred from state custody to face the charges in this case. Sandoval will remain detained pending his sentencing hearing, which has yet to be scheduled, when he will be sentenced under the Armed Career Criminal Act, which requires a mandatory minimum 15 year prison sentence for career criminals.
Sandoval was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office. It is being prosecuted by Assistant U.S. Attorney Lynn W.Y. Wang.Arkansas State Treasurer Martha Shoffner Charged with ExtortionRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Randall C. Coleman, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation, announced today that Arkansas State Treasurer Martha Shoffner, age 68, was charged by federal Complaint today with attempt and conspiracy to commit extortion under color of official right, in violation of Title 18, United States Code, Section 1951(a). Shoffner was arrested on May 18, 2013, and appeared today before United States Magistrate Judge H. David Young for an initial appearance on the federal Complaint. Shoffner was released from custody.
The Complaint alleges that Shoffner obtained cash payments, to which she was not entitled, from an individual, with the individual's consent, knowing that the cash payments were made under color of official right, in return for official acts as Arkansas State Treasurer. The allegations in support of the criminal complaint are set forth in the complaint affidavit, attached.
If convicted, Shoffner faces not more than 20 years in prison and up to a $250,000 fine, or both followed by not more than 3 years supervised release.
The investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorneys Jana Harris and Stephanie Mazzanti are prosecuting this case for the United States.
The charges set forth in a Complaint are merely allegations. A federal Grand Jury will decide whether to indict on these charges. The defendant is presumed innocent until proven guilty.
(Complaint and Affidavit Supporting Complaint )
Sunday 19 May 2013
Defendant Pleads Guilty to Prohibited Possession of FirearmsRead the Press Release
United States Attorney Kenyen R. Brown announced today that Ted McCall Snow of Wilmer, Alabama, entered a guilty plea to a charge of being a felon in possession of firearms. The evidence presented in support of the plea was that on the morning of March 8, 2013, an individual returned to his residence on Woodland Hills Drive and found an unfamiliar vehicle in the carport. Snow was in the driver’s seat and sped away from the scene. The back door of the residence had been forced open and three firearms and a jewelry box had been removed from their usual resting places in the residence, and were sitting near the back door. The resident called the police and provided a description of the driver and the vehicle. Shortly thereafter, a Mobile Police Department officer stopped the vehicle driven by Snow at Schillinger Road and Old Government Street. The burglary victim was brought to the scene of the traffic stop and he identified Snow as the person he saw speed away from his residence.
Snow was previously convicted of eleven cases of burglary, receiving stolen property and theft in Mobile County Circuit Court between 1989 and 2007. By virtue of these convictions, and Snow’s resulting status as a convicted felon he is prohibited from possessing firearms or ammunition.
Possession of a firearm or ammunition by a previously convicted felon is a violation of Title 18, United States Code Section 922(g)(1). The statutory maximum penalty provided by law is 10 years imprisonment. If however, the Defendant has three prior convictions for violent felonies, such as burglary, or serious drug offenses, the penalty provided by law is a minimum mandatory sentence of 15 years to a maximum of life imprisonment.
Snow is scheduled to be sentenced before the Honorable Callie V.S. Granade on October 21, 2013. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Mobile County Sheriff’s Office, and the Mobile Police Department. The case is being prosecuted by the United States Attorney’s Office for the Southern District of Alabama.
Saturday 18 May 2013
U.S. Attorney Ortiz Addresses Northern Essex Community College GraduatesRead the Press Release
Good morning! And thank you, President Glenn, members of the Board of Trustees, administrators, distinguished faculty, proud parents, family, friends, and especially the esteemed graduates of the Class of 2013! Congratulations!
It is such an honor to be here celebrating this very special achievement with you. Make no mistake about it, what you have accomplished during your time at Northern Essex Community College is truly remarkable – and this is just the beginning!
First, I would like to thank President Glenn for inviting me to attend this year’s commencement celebration and for affording me the privilege of addressing the graduates today.
I’d also like to acknowledge the family members here who partake in this shared sense of accomplishment: this is a big day for you as well! It is wonderful to see so many family members and friends here to share in the joy of this occasion. And I can tell who you are, not because you aren’t wearing silly square caps, but because you are beaming with pride and it’s written all over your faces. As a mom of a college graduate, I know how that feels!
On several occasions I have had the privilege of addressing graduates at their commencement ceremony. Invariably, it is a tremendous honor and a great responsibility to bestow advice because commencement speakers typically see this occasion as an opportunity – indeed a duty – to provide some guidance to graduates as they leave the halls of academia and enter “the real world”.
When I think about the so-called “real world” and what is ahead for all of you -- for all of us really -- I think about challenges and hardships; both big and small, and how people overcome them. I believe when tested, people rise to the occasion, and nothing exemplifies this more than the events associated with the Boston Marathon bombings. The challenges and hardships posed for so many people were unimaginable. Yet, ordinary people chose to act and risk harm in order to help others; as well as, professionals who risked their lives to save others and to restore peace to our community. There were many examples of people coming together, when we needed it most. If there is anything I have learned from this event is that as a people living in this great country, when needed, we all come together and look out for each other.
But I think many of you already know that. Most of you have already begun – or began long ago – confronting challenges and hardships.
At some point you came to a fork in the road where you had to choose between two, or three, or many options. You were faced with a choice, and you made the decision to endeavor down the path of higher education. You are here today because you know that through hard work and education, you will achieve the success you strive for. Now, you are blazing your trail and the legacy that you are creating is, I am sure, an inspiration to your friends and family. I know it is for me!
So what does that mean: to create your legacy? I can’t tell you what it means for each of you individually, but determining the path of your legacy is up to you to decide!
And in fact, one of your classmates, Omar Anagam, can tell you that from his own experience. Omar and his wife immigrated in 2000. To support his growing family, he worked a series of jobs in car sales, hospitality, and banking. In 2006 he enrolled at Northern Essex part-time, studying at night while working full-time.
Omar’s ‘fork in the road’ came in 2010 when he was laid-off . With encouragement from his wife, whom he calls his “big motivator”, Omar went back to school, full-time, to earn an Associate’s Degree in respiratory care, a health care program in high-demand.
Today, Omar is graduating with high honors. In the meantime, he is capitalizing on this momentum, making plans to earn a bachelor’s degree in health and wellness promotion.
Omar is living his legacy. His resolve, and the unyielding support of his wife, personifies one of the principles on which I have come to live by. I have learned, through the ups and downs of my personal and professional life, how important it is to surround yourself with people who believe in you, encourage you, and support your career and ambitions.
What many people don’t know is that I served as a prosecutor in the U.S. Attorney’s Office for 12 years before I even considered applying for the position of U.S. Attorney. When I decided to make a move and apply for this job under the Obama Administration, I began to have doubts. There were others who were being touted as favorites for the job. I second-guessed myself, thinking, “How could I overcome those odds?” It was my close friends, colleagues and family who encouraged me. They said, “Go for it. What do you have to lose?!” I am certain that without their support, I wouldn’t be here today.
So I urge all of you, graduates, to surround yourself with mentors, colleagues, friends and family who will help motivate you to keep moving forward. Looking around here, today, I think it’s safe to say that you’ve already found a few…hundred people that support you. From President Glenn to academic advisors, and support staff to faculty, the Northern Essex Community College family will always believe in you.
Each one of you came to this college at a different stage of life. I know that many of you were working while you attended school, or worked for several years before returning to school. I know the tremendous dedication, perseverance, and even sacrifice that this requires. I assure you that the rewards of earning an education will far outweigh those sacrifices, and Alice Beauchamp’s story serves as a great example.Alice didn’t have a college degree, but she served in a variety of positions in corporate finance. When she was laid-off during the recent recession, she thought she would easily find a new job. But she quickly realized that in the struggling job market, her lack of a degree posed difficulties in her search.
Alice decided to enroll at Northern Essex in business management, specializing in healthcare, would complement her past experience and allow her to use her career to help others. Earlier this spring, with her Associate’s Degree within reach, Alice secured a job as a business manager at the Lawrence YMCA. Already, it’s a job she loves.
I admire Alice. She never gave up on what she wanted to achieve most: a career that enabled her to help others. And that’s something that resonates with me as well.
When I was young, I wanted to be a lawyer because I believed it was a profession that I could utilize to help people. I grew up in a housing project in Spanish Harlem, the oldest of five children born to two, hardworking Puerto Rican parents. Like more than half of you, I too, was the first in my family to go to college. I saw the struggles of my neighbors and my friends. So it’s no surprise that once I became a lawyer, I was drawn time and again to a career in public service. It was a way for me to give back. I genuinely believe that a career in public service is a noble profession, one that takes commitment and sacrifice. Sometimes it means putting the needs of your community and the public before your own…and before your own family at times. Yet, serving the public can be tremendously satisfying.
I have been very fortunate in my career. My varied experiences as a state and federal prosecutor, defense attorney, and civil litigator, have prepared me for the job I now hold. Never could I have imagined that as a little girl who came from humble beginnings that I would one day become the U.S. Attorney for the District of Massachusetts. I think it goes to show that you should never give up on what you want to achieve.
If nothing else, the diploma you receive today should give you the confidence to assure yourself that you have what it takes. You need confidence to take certain leaps of faith at different times in your life…to choose the path that is most challenging.
Josiery Santos clearly has what it takes. Josiery immigrated to the U.S. in pursuit of an education. But before she could enroll in college courses, she needed to improve her English and get a full-time job. Josiery woke up at 4am each day and went into work where she was a manager at a fast food restaurant. She worked from 5am until 4 in the afternoon, before going to class for several hours in the evening. When she finally returned home, she did her homework and snuck in a few hours of sleep before waking up to repeat that exhaustive routine.
But her internship in the probation department at the Lawrence Courthouse has reassured her that her hard work is paying off and that the field of Criminal Justice is a perfect fit. Josiery is well on her way to fulfilling her desire for an education: she is graduating today from the Criminal Justice Program with honors and will transfer to UMass Lowell to continue her studies.
Josiery says that the United States is the “country of opportunity”, but that doesn’t mean that it didn’t take her a lot of hard work and perseverance to achieve her dreams.
Although I highlighted just a few stories of your peers, it is without a doubt that all of you have worked hard and have overcome adversity to be here today – to walk across this stage. For some, this may feel like just the beginning of your long journey – and for others this experience may feel like a detour, but a necessary step toward betterment of yourself, your family and your community. Regardless of the path each of you took to get here, today is an important day. It signifies your ability to forge ahead, overcome stereotypes and not let others’ perceptions define you or hold you back.
It’s been almost four years since I was sworn in as the U.S. Attorney. And, I have to tell you, there's never been a job at which I've worked so hard or that I’ve loved so much. To serve in this role has been an extraordinary privilege and being the first woman and the first Hispanic U.S. Attorney in Massachusetts is certainly not lost on me. In fact, it has been, and will continue to be, a source of strength and encouragement for me and hopefully, for others as well.
I am proud to be in the company today of so many graduates from diverse backgrounds such as myself: 65% of this year’s graduates are women, 37% are minorities, and more than half are first-generation college graduates.
I think that in our society, the demands and expectations on all of us have increased exponentially in recent years – especially as we seek to do it all: to balance a demanding career with family responsibilities. It is incumbent upon each and every one of us to do our part, to help weave the nation’s fabric with the colors and texture that represent the world in which we live.
I hope that as you go forth, you make that part of your legacy. You are our future leaders. It is up to you to inspire younger generations, to push the limits of conventionalism, and to define the evolving landscape of America.
So as you drive away from campus today, drive along your path with confidence. Don’t forget where you came from and return the goodwill that you benefitted from by helping those following in your footsteps.
I leave you with one last piece of advice, handed down from President Obama: “whether it’s starting a business, or running for office, or raising an amazing family, remember that making your mark on the world is hard. It takes patience. It takes commitment. It comes with plenty of setbacks and it comes with plenty of failures. But whenever you feel that creeping cynicism, whenever you hear those voices say you can’t make a difference, whenever somebody tells you to set your sights lower – the trajectory of this country should give you hope.”
Congratulations on reaching this moment, and thank you, once again, for allowing me to celebrate it with you.
DPNR Chief Enforcement Officer Arrested for Drug TraffickingRead the Press Release
St. Thomas, USVI – Roberto Tapia, Director of the Virgin Islands Department of Planning and Natural
Resources (DPNR) Division of Environmental Enforcement, was arrested Friday by federal agents and
charged with conspiracy to possess with intent to distribute cocaine, and possession of a firearm in
furtherance of drug trafficking.The arrest was announced by United States Attorney for the District of the Virgin Islands Ronald
W. Sharpe; U.S. Drug Enforcement Administration (DEA) Acting Special Agent-in-Charge Pedro Janer;
Federal Bureau of Investigation (FBI) Special Agent in Charge Carlos Cases; Internal Revenue Service
Criminal Investigation Division (IRS-CI) Special Agent-in-Charge José A. Gonzalez; United States
Marshal for the District of the Virgin Islands Cheryl Jacobs; Virgin Islands Police Commissioner Rodney
Querrard; U.S. Department of Homeland Security, Homeland Security Investigations (HSI) Acting
Special Agent-in-Charge Angel Melendez; U.S. Customs and Border Protection (CBP) Special
Agent-in-Charge Marcelino Borges; United States Coast Guard Captain Drew Pearson, and the Bureau of
Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent-in-Charge Hugo Barrera.Tapia made his initial appearance in District Court today before Chief Judge Curtis V. Gomez, and was ordered held without bail pending a detention hearing Tuesday. According to the criminal complaint
filed in District Court today, federal agents observed Tapia on Friday using a DPNR boat in furtherance of
a drug trafficking conspiracy. At the time of the arrest, Tapia was armed, wearing clothing bearing
official DPNR insignia and in possession of a bag containing approximately seven kilograms of cocaine.If convicted, Tapia faces a statutory minimum penalty of 10 years in prison.
This case is being prosecuted by Assistant United States Attorneys Kelly B. Lake and Kim R.
Lindquist, and is being investigated by the DEA, FBI, U.S. Marshals Service, IRS-CI, VIPD, HSI, CBP,
U.S. Coast Guard, ATF, and the Public Corruption Task Force.The public is reminded that a criminal complaint is merely a charging document and is not
evidence of guilt. A defendant is presumed innocent until and unless proven guilty.U.S. Attorney Sharpe also announced that a press conference will be held at 11 a.m. Monday in the
Ron deLugo Federal Building on St. Thomas.
Friday 17 May 2013
Wyoming Man Charged with Assault Resulting in Serious Bodily Injury and Assault with A Dangerous Weapon with Intent to Do Bodily HarmRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced today that on May 16, 2013, Claude Lee Duran, Jr., a 26-year-old Northern Arapaho Tribal Member, appeared in Federal Court after having been indicted in a two count Indictment charging him with assault resulting in serious bodily injury in violation of 18 U.S.C. §§ 113(a)(6) and 1153 and with assault with a dangerous weapon with intent to do bodily harm in violation of 18 U.S.C. §§ 113(a)(3) and 1153. The charges against Mr. Duran stem from an incident that occurred on September 28, 2012 on the Wind River Indian Reservation in which he is alleged to have assaulted Blaine Collins Oldman with a bat, stick, or metal rod, causing serious injuries. This case is being investigated by the Federal Bureau of Investigation.
An indictment is only an accusation. In every criminal case, the accused is presumed to be innocent until proven guilty, and the government always has the burden of proving guilt at trial beyond a reasonable doubt.Wisconsin Woman Indicted for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wausau, Wisconsin woman has been indicted by a federal grand jury for Failure to Pay Legal Child Support.
Estella Melchor, age 34, was indicted by a federal grand jury on November 6, 2012 for failing to pay over $14,850.00 in past due child support. She appeared before U.S. Magistrate Judge John E. Simko on May 13, 2013 and pled not guilty to the indictment.
The maximum penalty upon conviction is two years imprisonment; a $250,000.00 fine; one year supervised release; one additional year upon revocation; a $100.00 assessment fee to the Federal Crime Victims Fund; and child support restitution amount owing at the time of sentencing.
The charge is merely an accusation and Melchor is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case.
Melchor was released on bond pending trial. A trial date has not been set.
Willowick Woman Accused of Claiming $5.2 Million in False RefundsRead the Press Release
On May 16th, IRS agents arrested Margaret Monone Greenaway on a two-count indictment charging her with claiming false income tax refunds totaling $5,271,794 for the years 2010 and 2011, said Steven M. Dettelbach, United States Attorney.
Greenaway filed income tax returns using her name during a prior marriage, Margaret M. Demaria-Susevich, on which she claimed refunds to which she was not entitled of $1,326,671 for 2010 and $3,945,123 for 2011, according to the indictment.
Greenaway, age 52, resides in Willowick, Ohio, according to court records. Following her arrest, Greenaway entered not guilty pleas before U.S. Magistrate Judge Kenneth S. McHargh, who ordered her to be temporarily detained while efforts were made to arrange for her release subject to home detention with electronic monitoring and the removal of computers from her home.
The case is assigned to United States District Judge David D. Dowd, in Akron.
The case was presented for indictment by Assistant United States Attorney John M. Siegel following an investigation by the Internal Revenue Service – Criminal Investigation, Cleveland, Ohio.
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.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.Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Michael A Volpe, 44, of Staten Island, New York, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of wire fraud and money laundering.Magistrate Nuechterleinis recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation and the Indiana State Police.Sentencing is set for 8/15/2013 10:00 AM in US District Court - South Bend before Judge Jon E DeGuilio.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana—The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Alfonso Salinas, 52, of Hammond, Indiana, pled guilty before Chief Judge Philip Simon to the felony offenses of bribery involving federal programs and income tax evasion.Sentencing has been set for 8/13/13.These charges were filed as a result of an investigation by the Internal Revenue Service.This case is being prosecuted by Assistant United States Attorney Gary Bell.
Joshua Robinson, 22, of Lafayette, Indiana, pled guilty before Magistrate Judge Paul Cherry to the felony offense of possession of a firearm with an obliterated serial number.Magistrate Cherry is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tippecanoe County Police Department and the Lafayette Police Department.This case is being prosecuted by Assistant United States Attorney Nicholas Padilla.
Che Williams, 21, of Gary, Indiana, pled guilty before Magistrate Judge Andrew Rodovich to the felony offense of possession of a firearm with an obliterated serial number.Magistrate Rodovich is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Indiana University Northwest Police and the Gary Police Department.This case is being prosecuted by Assistant United States Attorney Dean Lanter.
Jesus Vasquez, 35, of Cicero, Illinois, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of distribution of 500 grams or more of cocaine.Sentencing has been set for 7/24/13.This charge was filed as a result of an investigation by the Drug Enforcement Administration.This case is being prosecuted by Assistant United States Attorney David Nozick.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITION:
Jennifer Guelinas, 55, of Valparaiso, Indiana, was sentenced by Senior District Judge James Moody to 4 years of probation, to include 12 months of detention, and restitution of $1,122,540.00 to Ameriprise Financial Services after pleading guilty to the felony offense of wire fraud.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Jill Koster.
Noe Diaz, 33, of Chicago, Illinois, was sentenced by Senior District Judge James Moody to 121 months imprisonment and 5 years of supervised release after pleading guilty to the felony offense of conspiracy to possess with the intent to distribute 5 kilograms or more of cocaine and fifty grams or more of methamphetamine.This case was the result of an investigation by the Drug Enforcement Administration HIDTA Task Force.This case was prosecuted by Assistant United States Attorney David Nozick.
Cesar Diaz, 39, of Calumet City, Illinois, was sentenced by Senior District Judge James Moody to 30 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of distribution of cocaine.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Joshua Kolar.
Marquis Young, 22, of Gary, Indiana, was sentenced by Senior District Judge James Moody to 84 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of use of a firearm in furtherance of a crime of violence.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Waynesville Couple Indicted for Meth Conspiracy; Officers Seized $414000 as Drug ProceedsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Waynesville, Mo., couple has been indicted by a federal grand jury for their role in a nearly $414,000 conspiracy to distribute methamphetamine in Pulaski and Laclede counties.
Bruce Conant, 58, and his wife Rendy Conant, 52, both of Waynesville, were charged in a four-count indictment returned under seal by a federal grand jury in Springfield, Mo., on May 8, 2013. That indictment was unsealed and made public upon the couple’s arrest and initial court appearance on Thursday, May 16, 2013.
The federal indictment alleges that the Conants participated in a conspiracy to distribute methamphetamine in Pulaski and Laclede counties from Feb. 20 to July 16, 2012. In addition to the conspiracy, they are charged with possessing 50 grams or more of pure methamphetamine with the intent to distribute.
Bruce Conant is also charged with two counts related to the illegal possession of a Charter Arms .38-caliber revolver. Conant is charged with possessing a firearm in furtherance of drug-trafficking crimes and with being a felon in possession of a firearm.
The indictment also contains forfeiture allegations, which would require the Conants to forfeit to the government any property derived from the proceeds of the alleged offenses, including $413,945, which was seized by law enforcement officers. According to the indictment, $84,165 was seized from the Conants on July 16, 2012 and $329,780 was seized from a storage facility rented by the Conants on July 17, 2012. The Conants would also be required to forfeit their residence in Waynesville, a 1995 Mustang Cobra, a 1998 BMW and a 1995 Chevrolet 1500. The Conants would also be required to forfeit personal property seized from their residence, including security and surveillance equipment, a coin collection, a flat screen television, police scanners, a telescope, a pair of binoculars, and night vision optics and scopes.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Ami Harshad Miller and Cynthia Hyde. It was investigated by the Drug Enforcement Administration, IRS – Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol, the Laclede County Mo., Sheriff’s Department, the Pulaski County, Mo., Sheriff’s Department, the Waynesville, Mo., Police Department and the Pulaski County, Mo., Prosecuting Attorney’s Office.
Vancouver Washington Man Pleads Guilty to Trafficking in Counterfeit Vehicle AirbagsRead the Press Release
A 25 year-old Vancouver, Washington man pleaded guilty today in U.S. District Court in Tacoma to conspiracy to traffick in counterfeit goods, announced U.S. Attorney Jenny A. Durkan. VITALIY YAREMKIV, was arrested April 2, 2013 after being indicted by a grand jury in Seattle. In his plea agreement YAREMKIV admits that between June 2011 and June 2012, he sold more than 900 counterfeit vehicle airbags he had purchased from a source in China. Under the terms of the plea agreement both sides will recommend a sentence of ten months in prison, but U.S. District Ronald B. Leighton is free to impose any sentence up to the ten year maximum allowed by law. Sentencing is scheduled for August 23, 2013.
According to the statement of facts in the plea agreement, YAREMKIV operated a business, Vital Auto Parts and Sales, out of his Vancouver home. He allegedly imported counterfeit Honda, Subaru and Toyota airbags from sources in China and elsewhere, and sold them over the internet representing them as the genuine product. YAREMKIV sold at least 964 of the counterfeit airbags via eBay with a sales total of $137,243. YAREMKIV sold individual Honda airbags for an asking price of $110. Investigators believe that many of the airbags are sold to independent garages who install them in vehicles believing they have purchased a genuine airbag. YAREMKIV has agreed to pay restitution of $137,243 to Honda Motors Corporation and Toyota Motors Corporation.
Information for consumers regarding counterfeit airbags is available here: http://www.safercar.gov/.
The case was investigated by the FBI and Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Norman Barbosa.
United States Sues Brooklyn Fish Processors in Food Safety CaseRead the Press Release
The Department of Justice has filed a lawsuit and sought a preliminary injunction against N.Y. Fish Inc.; New York City Fish Inc.; Maxim Kutsyk, Pavel Roytkov, Leonid Staroseletesky, and Steven Koyfman under the federal Food, Drug, and Cosmetic Act (FDCA). New York City Fish manufactures and distributes ready-to-eat fishery products, including smoked salmon and mackerel, and operates out of a food processing facility located at 738 Chester Street in Brooklyn. N.Y. Fish previously operated a similar fish processing business out of the same location, employing virtually all of the same employees. Although N.Y. Fish has ceased manufacturing, FDA believes that N.Y. Fish products continue to be distributed and sold. The complaint alleges that all defendants have a history of processing fishery products under insanitary conditions, with inadequate safety procedures.
“Consumers depend on food producers to follow the right procedures to make sure our food is safe to eat,” said Acting Assistant Attorney General for the Civil Division Stuart F. Delery. “As this case demonstrates, the Department of Justice is committed to taking action against those who produce or process food under insanitary conditions or with inadequate safety procedures.”
“Inspectors who visited the defendants’ facility found more than Nemo; they found life-threatening bacteria. Despite repeated warnings and direction to sanitize the facility, the defendants have failed to do so. They cannot be allowed to continue to distribute potentially unsafe food to our families. Those who store, package and sell the food that we eat must maintain basic standards of cleanliness in their facilities. We are committed to protecting the public from health risks by ensuring that food manufacturers comply with federal laws prohibiting them from preparing, packing and holding food products under insanitary conditions,” stated Loretta E. Lynch, the United States Attorney for the Eastern District of New York.
According to the complaint, FDA conducted seven inspections of the Chester Street facility between 2006 and 2013. The inspections showed a repeated failure to minimize the risk of contamination by two dangerous types of bacteria: Listeria monocytogenes and Clostridium botulinum. People who eat food contaminated with Listeria monocytogenes can contract the disease listeriosis, which can be serious,even fatal,for vulnerable groups such as newborns and those with impaired immune systems. Complications from the disease can also lead to miscarriage. Clostridium botulinum spores can produce the toxin that causes botulism. Eating food tainted with this toxin can lead to paralysis and potentially death.
FDA’s most recent inspection occurred in February 2013, when New York City Fish was operating the Chester Street facility. According to court filings, the company missed critical processing steps that are essential to prevent the growth and toxin production of Clostridium botulinum and to eliminate any Listeria monocytogenes contamination, including heating fish for a dangerously short time and using insufficiently salty brining solution.
FDA previously investigated the facility in August 2012, when it was operated by N.Y. Fish. FDA inspectors discovered widespread sanitation problems and a similar failure to meet critical steps necessary to prevent contamination. They also found salmon products and production equipment contaminated with Listeria monocytogenes, even after the company attempted to clean and sanitize the facility.
Further testing by the FDA revealed that certain strains of Listeria monocytogenes it found likely had persisted in the Chester Street facility for years. FDA contends that the facility is so infiltrated with Listeria monocytogenes that New York City Fish must institute heightened monitoring and strict sanitation procedures to have any hope of eradicating this life-threatening organism, but that it has failed to do so.
The lawsuit is being brought by Assistant U.S. Attorney Elliot M. Schachner of the Eastern District of New York, and Trial Attorney Adrienne Fowler of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel for Enforcement Julie Dohm of the FDA.
United States Sues Brooklyn Fish Processors in Food Safety CaseRead the Press Release
WASHINGTON, D.C. – The Department of Justice has filed a lawsuit and sought a preliminary injunction against N.Y. Fish Inc.; New York City Fish Inc.; Maxim Kutsyk, Pavel Roytkov, Leonid Staroseletesky, and Steven Koyfman under the federal Food, Drug, and Cosmetic Act (FDCA). New York City Fish manufactures and distributes ready-to-eat fishery products, including smoked salmon and mackerel, and operates out of a food processing facility located at 738 Chester Street in Brooklyn. N.Y. Fish previously operated a similar fish processing business out of the same location, employing virtually all of the same employees. Although N.Y. Fish has ceased manufacturing, FDA believes that N.Y. Fish products continue to be distributed and sold. The complaint alleges that all defendants have a history of processing fishery products under insanitary conditions, with inadequate safety procedures.
“Consumers depend on food producers to follow the right procedures to make sure our food is safe to eat,” said Acting Assistant Attorney General for the Civil Division Stuart F. Delery. “As this case demonstrates, the Department of Justice is committed to taking action against those who produce or process food under insanitary conditions or with inadequate safety procedures.”
“Inspectors who visited the defendants’ facility found more than Nemo; they found life-threatening bacteria. Despite repeated warnings and direction to sanitize the facility, the defendants have failed to do so. They cannot be allowed to continue to distribute potentially unsafe food to our families. Those who store, package and sell the food that we eat must maintain basic standards of cleanliness in their facilities. We are committed to protecting the public from health risks by ensuring that food manufacturers comply with federal laws prohibiting them from preparing, packing and holding food products under insanitary conditions,” stated Loretta E. Lynch, the U.S. Attorney for the Eastern District of New York.
According to the complaint, FDA conducted seven inspections of the Chester Street facility between 2006 and 2013. The inspections showed a repeated failure to minimize the risk of contamination by two dangerous types of bacteria: Listeria monocytogenes and Clostridium botulinum. People who eat food contaminated with Listeria monocytogenes can contract the disease listeriosis, which can be serious, even fatal, for vulnerable groups such as newborns and those with impaired immune systems. Complications from the disease can also lead to miscarriage. Clostridium botulinum spores can produce the toxin that causes botulism. Eating food tainted with this toxin can lead to paralysis and potentially death.
FDA’s most recent inspection occurred in February 2013, when New York City Fish was operating the Chester Street facility. According to court filings, the company missed critical processing steps that are essential to prevent the growth and toxin production of Clostridium botulinum and to eliminate any Listeria monocytogenes contamination, including heating fish for a dangerously short time and using insufficiently salty brining solution.
FDA previously investigated the facility in August 2012, when it was operated by N.Y. Fish. FDA inspectors discovered widespread sanitation problems and a similar failure to meet critical steps necessary to prevent contamination. They also found salmon products and production equipment contaminated with Listeria monocytogenes, even after the company attempted to clean and sanitize the facility.
Further testing by the FDA revealed that certain strains of Listeria monocytogenes it found likely had persisted in the Chester Street facility for years. FDA contends that the facility is so infiltrated with Listeria monocytogenes that New York City Fish must institute heightened monitoring and strict sanitation procedures to have any hope of eradicating this life-threatening organism, but that it has failed to do so.
The lawsuit is being brought by Assistant U.S. Attorney Elliot M. Schachner of the Eastern District of New York, and Trial Attorney Adrienne Fowler of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel for Enforcement Julie Dohm of the FDA.
Two Men Indicted for Attempted Armed Robbery of Palisades National BankRead the Press Release
DENVER – Two men, Jose O. Jimenez and Bryan R. Morrow, have been indicted by a Federal Grand Jury charging them both with attempted armed bank robbery, the U.S. Attorney’s Office, the Federal Bureau of Investigation, and the Palisade Police Department announced. In addition, Jimenez also faces firearms offenses. Jimenez was arraigned on the indictment in U.S. District Court in Denver yesterday (May 16th). Morrow is currently being held on unrelated charges, and is expected to make his initial appearance in U.S. District Court in Grand Junction on May 22, 2013 at 2:00 p.m.
According to the Indictment, on August 20, 2011 Jimenz and Morrow did knowingly by force and violence, and by intimidation, attempt to take money from Palisades National Bank, located in Palisade, Colorado. The indictment further alleges that Jimenez, a fugitive from Washington State, did knowingly possess a firearm which previously had been transported in interstate commerce. Jimenz is also accused of possessing a Glock 22 .40 caliber semi-automatic pistol he obtained during the armed bank robbery.
“This was a brazen attempt to rob this bank,” said U.S. Attorney John Walsh. “Thanks to the efforts of the FBI and the Palisade Police Department, the community, which was traumatized by this crime, can rest easy knowing those responsible have been apprehended.”
“These indictments illustrate the FBI’s commitment to work with its partners to address violent crime,” said FBI Denver Special Agent in Charge Thomas Ravenelle. “We extend our gratitude to the Palisade and Grand Junction Police Departments, the Mesa County Sheriff’s Office and the United States Attorney’s Office for working together to further this investigation and bringing charges forward on Jimenez and Morrow.”
“The armed bank robbery was incredibly traumatic for the victims of the crime, especially the bank tellers and for the officer who responded to the bank,” said Palisade Police Chief Tony Erickson. “The robbery has not only impacted the bank employees, it also has had an impact on the police officers and the citizens of Palisade. Thanks to the hard work of the Palisade Police Department and the FBI, we were able to identify those responsible for the crime.”
If convicted, both men face not more than 25 years in federal prison, and up to a $250,000 fine for attempted armed bank robbery. In addition, Jimnez faces not more than 10 years in prison and a fine of up to $250,000 for both being a fugitive from justice in possession of a handgun and for possession of a stolen firearm.
This case was investigated by the Federal Bureau of Investigation (FBI) and the Palisade Police Department with assistance from the Grand Junction Police Department and the Mesa County Sheriff’s Office. The defendants are being prosecuted by Assistant U.S. Attorney Michelle Heldmyer.The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
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Two Foreign Nationals Sentenced in Houston to Prison for Human SmugglingRead the Press Release
Indian national Kaushik Jayantibhai Thakkar and Brazilian national Fabiano Augusto Amorim were each sentenced today to serve 36 months in prison for their roles in smuggling undocumented migrants to the United States for private financial gain, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson for the Southern District of Texas and U.S. Immigration and Customs Enforcement (ICE) Director John Morton.
Thakkar, 33, and Amorim, 28, were sentenced by U.S. District Judge Ewing Werlein Jr. in the Southern District of Texas. In addition to their prison terms, Thakkar and Amorim were sentenced to serve two years of supervised release.
On Dec. 2, 2012, and Jan. 4, 2013, respectively, Thakkar and Amorim each pleaded guilty to one count of conspiracy to bring undocumented migrants into the United States for profit and to one count of unlawfully bringing two undocumented migrants into the United States for profit.
According to court documents, Thakkar and Amorim worked together and with other co-conspirators to smuggle individuals from India into the United States. In support of the conspiracy, Thakkar and others recruited individuals in India who were willing to pay up to $60,000 to be smuggled into the United States. For their smuggling operations, Thakkar and Amorim and their associates used a network of co-conspirators in South America, Central America, the Caribbean and the United States, including the state of Texas. Using this network, Thakkar, Amorim and their co-conspirators transported groups of undocumented migrants from locations within India through South America, Central America and the Caribbean and then into the United States by various means, including by air travel, automobiles, water craft and foot. Many of these smuggling events involved illegal entry into the United States via the border between the United States and Mexico near McAllen and Laredo, Texas.
A third co-conspirator, Maria Adela De Luna, pleaded guilty on Nov. 9, 2012, to one count of conspiracy to harbor undocumented migrants in the United States. On Feb. 15, 2013, De Luna was sentenced to serve 19 months in prison and three years of supervised release for her role in the conspiracy.
The investigation was conducted by agents with ICE-Homeland Security Investigations (HSI) in McAllen and Houston, with the assistance of U.S. Customs and Border Protection’s Alien Smuggling Interdiction Unit. This case is being prosecuted jointly by Assistant U.S. Attorneys Leo J. Leo III and Casey MacDonald of the Southern District of Texas and Trial Attorney Stephen Curran of the Criminal Division’s Human Rights and Special Prosecutions Section.
The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.Trucking Company Owner IndictedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Devasko Dewayne Lewis, age 34, of Lowndes County, Georgia, was indicted by a Federal Grand Jury sitting in Macon, Georgia on May 16, 2013 for two counts of making False Statements in a matter within the jurisdiction of a Federal agency in violation of Title 18 United States Code, Sections 1001 and 2, as well as Conspiracy to Continue Operations After Imposition of an Out-of-Service Order, in violation of Title 49, Code of Federal Regulations, Section 386.72 and in in connection with Title 49, United States Code, Section 521(B)(6)(A). A copy of the indictment as filed in United States District Court for the Middle District of Georgia is attached.
The indictment alleges that Mr. Lewis and his prior company, Lewis Trucking, was the subject of an Imminent Hazard Operations Out-of-Service Order issued by the Department of Transportation, Federal Motor Carrier Safety Administration, which was served on Mr. Lewis on October 6, 2008 and has remained in effect since. Mr. Lewis violated the Order by continuing to operate commercial motor vehicles and concealing his true involvement by filing the applications for Department of Transportation Motor Carrier Numbers under names other than his own.
If convicted, Mr. Lewis faces imprisonment up to five (5) years, a fine of up to $250,000.00, and up to three (3) years supervised release, a mandatory assessment fee of $100.00 as to each of the false statement counts. With regard to the conspiracy count, the maximum penalty in the event of conviction is one (1) year imprisonment, up to $25,000.00 fine or both, and up to one (1) year supervised release, $25.00 mandatory assessment fee of $25.00.An indictment is only an accusation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt at trial.
The case was investigated by United States Department of Transportation, Office of Inspector General and the United States Department of Transportation, Federal Motor Carrier Safety Administration. The case is being prosecuted by Assistant United States Attorney Robert D. McCullers.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2602.
Town of Niagara Man Sentenced on Drug Conspiracy ChargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Robert Gardiner, 29, of the Town of Niagara, N.Y., who was convicted of conspiracy to manufacture methamphetamine, was sentenced to one year in prison and three years supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that on May 3, 2012, members of the Niagara County Drug Task Force and the Drug Enforcement Administration executed a search warrant at the defendant's residence, a mobile home on Quain Place in the Town of Niagara. Agents found an active methamphetamine lab in the kitchen of the mobile home. They also seized precursor chemicals and ingredients used to manufacture methamphetamine, a loaded 12-gauge Mossberg shotgun, shotgun shells, a digital camera, and drug paraphernalia and spent blister packs from the pseudophedrine tablets.
Co-defendant Jason Hannon, 38, also of the Town of Niagara, NY, was sentenced to 63 months in prison by Judge Arcara on March 13, 2013. Two other co-defendants, Roberta Hannon, 45, of the Town of Niagara, and Keith Crossley, 39, of Niagara Falls, pleaded guilty to conspiracy to manufacture methamphetamine and are awaiting sentencing.
The sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, new York Field Office and the Niagara County Drug Task Force, under the direction of Sheriff James Votour.Three Jackson County Men Charged with Methamphetamine ConspiracyRead the Press Release
Three Jackson County, Illinois, residents were indicted on May 9, 2013, and charged with conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
On May 13, 2013, and May 14, 2013, Donald Gregory, 47, and Jaben Graff, 35, both of Murphysboro, and Daniel Loden, 30, of Grand Tower, were arraigned in United States District Court in Benton on the charge. The indictment alleges that the offense occurred between March 2011 and March 2013 in Jackson County. At a May 16, 2013, detention hearing, Gregory and Graff were ordered held without bond pending a July 15, 2013, jury trial. Loden was released on bond.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, Gregory, Graff, and Loden face a term of a minimum of 5, but not more than 40 years in prison, a $5,000,000 fine, and 4 years of supervised release.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office and Murphysboro Police Department.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Texas Man Sentenced to 6 Years for Conspiring to Distribute Methamphetamine in Northern KY.Read the Press Release
COVINGTON, KY - A Texas man was sentenced to 72 months in federal prison for his role in a conspiracy to distribute methamphetamine in northern Kentucky.
U.S. District Judge David Bunning sentenced 52-year-old Michael Brian Brown on Thursday and placed him on supervised release for five years after he completes his prison term.
Brown admitted to distributing over 50 grams of pure methamphetamine from November of 2011 through April of 2012. He shipped between 1/8 ounce and an ounce of methamphetamine to Kenton County on approximately 12 occasions. Brown’s co-defendant, Michael Harney, received these shipments and distributed the methamphetamine in different areas in Northern Kentucky. In April of this year, Harney was sentenced to 53 months in prison.
Under federal law, Brown must serve 85 percent of his prison sentence.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Robert L. Corso, Special Agent in Charge, Drug Enforcement Administration (DEA), jointly announced the sentence.
The investigation was conducted by the DEA. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorney Tony Bracke.
Tarpon Springs Man Sentenced to 5 Years in Federal Prison for Narcotics and Firearm ChargesRead the Press Release
Tampa, FL - U.S. District Judge James D. Whittemore yesterday sentenced Gary Galati (46, Tarpon Springs) to five years in federal prison for possessing with intent to distribute marijuana and using a firearm during and in relation to that drug trafficking crime, and for possessing a firearm in furtherance of that drug trafficking crime. Galati pleaded guilty to those charges on January 15, 2013.According to court documents, Galati owned Galati Guns, Inc. and sold firearms without maintaining records as required by federal law. In addition, during the course of the investigation, Galati sold marijuana, firearms, and ammunition to a confidential source. On December 12, 2012, while at Galati Guns, Galati exchanged two firearms for marijuana with the confidential source. Later that day, federal agents executed search warrants at Galati Guns and at Galati’s residence, where they found additional marijuana near a loaded firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pasco County Sheriff’s Office, and the Pinellas County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Joseph W. Swanson.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Tampa Man Found Guilty of Drug ConspiracyRead the Press Release
Tampa, Florida - U.S. Attorney Robert E. O'Neill announces that a federal jury yesterday found Eugene E. Davis (39, Tampa) guilty of conspiracy to possess with the intent to distribute 5 kilograms or more of cocaine and conspiracy to possess with the intent to distribute 280 grams or more of crack cocaine. Based on his prior felony drug convictions, Davis faces a mandatory minimum term of life imprisonment. His sentencing hearing is scheduled for August 5, 2013. Davis was indicted on October 18, 2012.
According to testimony and evidence presented at trial, Davis engaged in a year-long conspiracy with others to distribute hundreds of kilograms of cocaine and crack cocaine in Hillsborough County. Davis, a prolific crack dealer, was known for purchasing multiple kilograms of cocaine and cooking it into crack cocaine. Additionally, he was often described as "flashy and flamboyant," because he used his drug proceeds to fund an extravagant lifestyle with high-end cars, expensive jewelry, and thousand of dollars in cash.
This case was the result of a comprehensive and dedicated effort by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service-Criminal Investigation, the Hillsborough County Sheriff's Office, and the Tampa Police Department, as part of an on-going Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation's drug supply. It is being prosecuted by Assistant United States Attorney Shauna S. Hale.
Syracuse Woman Sentenced in Aggravated Identity Theft CaseRead the Press Release
United States Attorney Richard S. Hartunian announced today that a Syracuse woman has been sentenced for her role in a series of aggravated identity thefts, three of which were committed after she had been indicted and while she was under federal court supervision.
Today Maurisha Dixon, age 25, was sentenced by United States District Court Judge David N. Hurd in Utica. DIXON was sentenced to 60 months imprisonment and ordered to pay restitution in an amount exceeding $55,000 with $36,694 going to Sallie Mae, $5,000 to The College Loan Corporation, and the remainder to KeyBank. DIXON will also serve four years of supervision following her release from incarceration and was ordered to pay a special assessment of $1,100. She was remanded to prison immediately following sentencing.
DIXON pleaded guilty on August 24, 2012 to four counts of aggravated identity theft, one count of wire fraud, three counts of false representation of a social security number, and three counts of committing an offense while on supervised release (11 felony counts in total). DIXON admitted that she stole and misused without authorization the identities and personal information of four individuals - some known to her, and some unknown - and used that information to defraud financial institutions in a series of schemes involving student loans and credit cards. In executing those schemes, DIXON created and used false documents, counterfeited government agency letterhead, and falsely represented herself as the individuals whose identities she had stolen.
The case was investigated by the Social Security Administration - Office of Inspector General and the Office of the Inspector General for the U.S. Department of Education. The case was prosecuted by Assistant United States Attorney Stephen C. Green.
Springfield, Kirbyville Men Charged with K2 ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man and a Kirbyville, Mo., man were charged in federal court today for their roles in a conspiracy to distribute synthetic marijuana, commonly referred to as K2.
Travis E. Butchee, 37, of Springfield, and Michael J. Saguto, 42, of Kirbyville, were charged with one count of conspiracy to manufacture and distribute a controlled substance analogue and one count of mail fraud in a criminal complaint filed in the U.S. District Court in Springfield. Saguto remains in federal custody pending a detention hearing. An arrest warrant has been issued for Butchee, who is a fugitive from justice. The public’s assistance is being sought to locate Butchee.
Butchee opened The Man Cave, a retail business at 1927 S.Glenstone in Springfield, in February 2013. Butchee and Saguto are the owners of Southern Spice, LLC.
According to an affidavit filed in support of today’s federal criminal complaint, Southern Spice manufactured synthetic cannabinoids (under such labels as Red Eyed, Blazed, Donkey Punch, Jolly Grape Giant, South of the Tracks, Baby Face and Devilz Lettuce), which was distributed to several businesses for resale. Search warrants were executed from January to December 2012 at several businesses – including Doobies (at two Springfield locations), Zak’s Place in Springfield, Beer and Bottle liquor store in Hollister, Mo., and Big E’s in Lebanon, Mo. – at which law enforcement officers seized hundreds of packages of K2 manufactured by Southern Spice, which were being sold by the businesses.
The affidavit cites four undercover purchases of K2 from The Man Cave by law enforcement officers in April and May 2013.
On Thursday, May 16, 2013 law enforcement officers executed search warrants at the residences of Saguto and Butchee, as well as at a Merriam Woods residence owned by Butchee. At Saguto’s residence, officers seized the components of a synthetic cannabinoid manufacturing laboratory and a significant amount of cash contained in an ammo box. At the Merriam Woods residence, officers seized three five-gallon buckets containing a plant substance identified as synthetic cannabinoids as well as packages filled with a substance believed to be synthetic cannabinoids, which were labeled Hillbilly Hay.
Saguto received numerous parcels through the mail on a frequent basis, the affidavit says, including frequent international parcels. Many of the international parcels originated in China. Many of the chemicals used to manufacture synthetic cannabinoids are produced in and distributed from China. The affidavit cites one package from China that was intercepted by law enforcement officers. The package, which was delivered to Saguto’s residence, contained two foil bags, each with approximately one kilogram of a chemical compound used to manufacture synthetic marijuana.
According to the affidavit, a total of $169,859 in checks from various head shops, tattoo parlors and other businesses were deposited into the Southern Spice bank account between April 10 and Nov. 20, 2012. Money was wired by Southern Spice to accounts in Hong Kong and China. An analysis of transactions from this bank account, the affidavit says, also showed purchases of other herbal products that are typically used as the plant ingredient in K2.
Dickinson cautioned that the charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the U.S. Postal Inspection Service, FDA-Office of Criminal Investigation, IRS-Criminal Investigation, the Drug Enforcement Administration, the Missouri State Highway Patrol, the Springfield, Mo., Police Department, the DEA Task Force and the COMET (Combined Ozarks Multi-jurisdictional Enforcement Team) Task Force.
Synthetic Designer Drugs
Over the past several years, smokable herbal blends marketed as being “legal” and providing a marijuana-like high have become increasingly popular, particularly among teens and young adults, because they are easily available and, in many cases, they are more potent and dangerous than marijuana. These products consist of plant material that has been coated with dangerous psychoactive compounds that mimic THC, the active ingredient in marijuana. These synthetic cannabinoids are sold at a variety of retail outlets, in head shops and over the Internet. Brands such as K2, Spice, Blaze, and Red X Dawn are labeled as incense to mask their intended purpose. However, they have not been approved by the Food and Drug Administration (FDA) for human consumption or for medical use, and there is no oversight of the manufacturing process.
While many of the designer drugs being marketed today are not specifically prohibited in the Controlled Substances Act, the Controlled Substance Analogue Enforcement Act allows these drugs to be treated as controlled substances if they are proven to be chemically and/or pharmacologically similar to a Schedule I or Schedule II controlled substance. This analogue provision specifically exists to combat these new and emerging designer drugs.
Six Indicted for Scheme to Defraud NissanRead the Press Release
Acting United States Attorney David Rivera announced the unsealing of an indictment today charging Kenneth Carter, 44, of Corona, Calif., Francisco DeLaRosa, 40, of West Covina, Calif., Adrian Franklin, 39, of Chandler, Arizona, Bruce Young, 49, of Compton, Calif., Tracey Young, 45, of Los Angeles and Wendell Young, 34, of Inglewood, Calif., with conspiracy, mail fraud, and conspiracy to commit money laundering for their involvement in a scheme to defraud Nissan North America of more than $571,500.
According to the indictment, between March 2007 and April 2008, Kenneth Carter was employed as an “Arbitration Specialist” at the Franklin, Tennessee headquarters of Nissan North America. In that role, he was responsible for negotiating settlement of claims brought on behalf of Nissan owners, alleging that Nissan had violated “Lemon Laws” or the “Federal Warranty Act.”
The indictment alleges that from March 2007 through April 2008, the defendants defrauded Nissan by filing false claims under the “Federal Warranty Act”. To accomplish the scheme, the defendants, and/or others acting on their behalf, would approach individuals who owned Nissan vehicles to obtain information such as the owner’s name, address, and vehicle identification number. Carter then used the information to create and cause to be filed, false and fraudulent claims on behalf of the Nissan owners, requesting compensation in the form of settlement checks. Once the checks were issued by Nissan, the defendants directed the Nissan owners to cash the checks or deposit the checks into their bank accounts. Thereafter, the defendants instructed the Nissan owners to pay them a portion of the funds they received from Nissan, with a portion of those funds kicked back and shared between Carter and the other defendants.
During the term of the scheme, Carter filed approximately 80 false claims, resulting in fraudulent payments by Nissan North America totaling approximately $571,500.If convicted, the defendants face up to 20 years on each mail fraud count, 20 years on the count of conspiracy to commit money laundering, 5 years on the count of conspiracy, and 5 years on the count of obstruction of justice.
The case was investigated by the IRS– Criminal Investigation and the Tennessee Bureau of Investigation. Assistant United States Attorney Kathryn B. Ward represents the government.
An indictment is merely an accusation and is not evidence of guilt. Defendants are presumed innocent unless and until proven guilty in a court of law.
Six Charged in Large Marijuana Drug Trafficking OperationRead the Press Release
– Nearly 4,900 pounds of marijuana seized and $160,650 in U.S. currency recovered in New Albany, Indiana and Jefferson County, Kentucky homes
LOUISVILLE, Ky. – Six defendants living in Jefferson, Shelby and Bullitt Counties, Kentucky have been charged today, in United States District Court, as part of a drug trafficking operation, with conspiracy to possess with intent to distribute and distribute 1000 kilograms or more of marijuana announced David J. Hale, United States Attorney for the Western District of Kentucky.
Raimundo Ramirez, Osvaldo Saldivar-Avila, Ricardo Saldivar-Avila, Jose Alfredo Escobar-Zavala, Jose Antonio Mora-Pizarro, Rafael Garcia-Garcia, were arrested yesterday and appeared in court this afternoon after being charged in a federal criminal complaint.
According to an affidavit, attached to the complaint, on the morning of May 16, 2013, agents observed Osvaldo Saldivar Avilla, Ricardo Saldivar Avilla, Jose Alfredo Escobar Zavala, and Osvaldo Saldivar Avila, at 906 Ulrich Avenue, in Louisville, KY. Almost immediately thereafter, a tractor trailer arrived and backed up to the rear bay door. The driver of this tractor trailer, later identified as Jose Antonio Mora Pizarro, was observed prepping the truck and watching inside the warehouse as pallets were being unloaded. On the pallets were multiple cardboard boxes labeled as cabbage and some pallets contained bags of onions. The tractor trailer was subsequently stopped by law enforcement and a drug detection dog indicated a positive alert for narcotics. The driver, Mora Pizarro, allegedly stated he was delivering cabbage and onions to Lexington, KY, and his log book showed he had been in Texas at 12:00 am on May 16, 2013.
A search warrant was obtained for 906 Ulrich Avenue where approximately 4,890 pounds of marijuana was found shrink wrapped inside cabbage boxes. Ricardo Saldivar Avilla, Jose Alfredo Escobar Zavala and Rafael Garcia were found unloading the suspected marijuana out of the cardboard boxes and arrested on site.
On March 14, 2013, the DEA Louisville District Office executed a federal search warrant at an alleged “stash house” being rented by defendant Raimundo Ramirez, on Jaycee Drive, located in New Albany, Indiana. Officers seized multiple heat sealers, unused heat sealing bags, multiple scales, drug ledgers, previously used heat sealed bags with numbers written on them, $160,650.00 U.S. Currency and a hand gun. The U.S. Currency was bundled with rubber bands and some of the currency, bundled in rubber bands, was further contained in heat sealed bags.
If convicted at trial, the defendants face a mandatory minimum of ten years up to life in prison, a fine of $10,000,000 and up to life of supervised release.
This case is being prosecuted by Assistant United States Attorney Laura Hall and is being investigated by the U.S. Drug Enforcement Administration (DEA) Louisville Office and the Louisville Metro Police Department.
Sioux Falls Man Indicted for FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota man has been indicted by a federal grand jury for fraud.
Randal Kent Hansen, age 65, was indicted by a federal grand jury on May 8, 2013 for Conspiracy to Commit Wire Fraud and Mail Fraud; Wire Fraud; and Mail Fraud. He appeared before U.S. Magistrate Judge John E. Simko on May 15, 2013 and pled not guilty to the indictment.
The maximum penalty upon conviction is 20 years imprisonment, a $250,000 fine or both. The charge is merely an accusation and Hansen is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Hansen was released on bond pending trial. A trial date has not been set.
Sioux Falls Man Guilty of Conspiracy to Distribute A Controlled Substance Analogue and Money LaunderingRead the Press Release
United States Attorney Brendan V. Johnson announced that Corey Brandon Morrison, age 24, of Sioux Falls, South Dakota appeared before U.S. District Judge Karen E. Schreier on May 17, 2013 for a change of plea hearing. Pursuant to a plea agreement, Morrison pled guilty to one count of Conspiracy to Distribute a Controlled Substance Analogue and one count of Money Laundering.
The drug charge carries a maximum sentence of 20 years in prison, a $1,000,000 fine, or both. The maximum sentence for the money laundering charge is 10 years in prison, a $250,000 fine, or both.
Under federal law, a controlled substance analogue is a substance which has a chemical structure that is similar to certain controlled substances and has an effect on the central nervous system which is intended to be similar to those controlled substances. Where controlled substance analogues are intended for human consumption, they are treated as controlled substances.
Morrison was indicted on October 10, 2012 by a federal grand jury. The indictment was the result of an investigation involving the Roll With It stores located in Sioux Falls.
Morrison’s conviction stems from his involvement in a drug conspiracy he joined in September 2011. As a participant in this conspiracy, Morrison sold analogue drugs to businesses in Sioux Falls where it was, in turn, sold to customers. Morrison was aware the customers were ingesting the substances to get high. Additionally, he deposited the illegal monetary gain into his personal bank account.
“Last year we stated that we would aggressively pursue anyone who was involved in the distribution of analogue drugs in South Dakota. We said what we meant, and meant what we said. There will be consequences for anyone who sells these drugs in our state,” said U.S. Attorney Johnson following the guilty plea.
The investigation was conducted by the U.S. Drug Enforcement Administration, the Internal Revenue Service, and the Sioux Falls Area Drug Task Force. U.S. Attorney Brendan Johnson and Assistant U.S. Attorney John E. Haak are prosecuting the case.
Morrison’s sentencing has been scheduled for August 2, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Sentences for May 16, 2013Read the Press Release
Geraldine Anita Margrave, 60, of Bend, Oregon, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 16, 2013, for possession with intent to distribute marijuana. Margrave was arrested in Bend, Oregon. She received five months of community confinement, to be followed by three years of supervised release and was ordered to pay a $200.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Sandra Renee Keith Indicted for Concealing A Fugitive and Making A False Statement to an Agency of the United StatesRead the Press Release
SANDRA RENEE KEITH, age 34, a resident of Hammond, Louisiana, was charged in a two-count indictment filed today for harboring and concealing a federal fugitive, and making a material false statement to a federal agent, announced U. S. Attorney Dana J. Boente.
According to court records, on May 6, 2013, KEITH did knowingly and willfully lie to agents of the Drug Enforcement Administration, an agency of the United States, in an attempt to conceal Michael D. Brumfield, a federal fugitive, from arrest.
If convicted, KEITH faces a maximum term of imprisonment of five (5) years, a $250,000 fine, three (3) years of supervised release following any term of imprisonment, and a $100 special assessment as to each count.
The case was investigated by the Drug Enforcement Administration. The case is being prosecuted by Assistant U. S. Attorney Julia K. Evans.
U. S. Attorney Boente reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
(Download Indictment )
San Francisco Man Indicted for Data Hosting SchemeRead the Press Release
SAN FRANCISCO - Yesterday a federal grand jury in San Francisco indicted Bruce Lee Marshall, of San Francisco, for mail fraud, United States Attorney Melinda Haag announced. Despite being ordered to appear in Court this morning, Marshall failed to appear for his arraignment and is currently a fugitive.
According to the Indictment, Marshall, 38, defrauded his employer, an education technology company, out of more than $100,000 by tricking his employer into believing it was sending checks to a data hosting company when in fact they went directly to Marshall. Marshall allegedly created a fake contract reflecting that the costs of his employer’s data hosting services were up to $16,000 per month, when, in fact, Marshall had entered into a different contract costing only $1,000 per month for data hosting services. Marshall allegedly created fraudulent invoices to be sent to his employer directing his employer to send payment to Touch Fiber Network and Human Engineering Services (aka HE Services), entities he controlled. In all, Marshall allegedly fraudulently caused his employer to pay his companies more than $100,000.
The investigation began in 2011 when aspects of this alleged fraud were charged against Marshall as a violation of his supervised release for a prior federal passport fraud conviction. Yesterday Marshall was ordered to appear in Court this morning for arraignment on the current charges. He failed to appear as ordered, however, and he is currently a fugitive. If anyone has information regarding his whereabouts, please call the San Francisco field office of the FBI at (415) 553-7400.
The maximum statutory penalty for mail fraud in violation of Title 18, United States Code, Section 1341, is 20 years in prison and a fine of $250,000, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Robert Rees is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rawaty Yim. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Marshall must be presumed innocent unless and until proven guilty.
(Marshall Indictment )
San Fernando Valley Doctor Who Sold Bogus Cancer ‘Cure’ to Victims Across the Nation Sentenced to 14 Years in Federal PrisonRead the Press Release
LOS ANGELES – The owner of a Mission Hills medical clinic who sold a bogus cancer cure to dozens of victims across the country as part of a “treatment” program that prosecutors said was “despicable, cruel and heinous” and hastened the death of some patients was sentenced today to 14 years in federal prison.
Christine Daniel, 58, of Santa Clarita, who operated a clinic under names such as the Sonrise Wellness Center, was sentenced to 168 months in prison by United States District Judge Robert J. Timlin, who remanded Daniel into custody following today’s hearing. In addition to the prison term, Judge Timlin ordered that Daniel forfeit a total of $1,277,083.
Following a federal court trial in September 2011, a jury convicted Daniel of four counts of mail and wire fraud, six counts of tax evasion and one count of witness tampering.
The basic facts of the case are that Daniel, a medical doctor and prominent Pentecostal minister, fraudulently marketed and collected more than $1 million for a medical treatment that she and her employees claimed could cure many diseases and conditions, including cancer, multiple sclerosis, stroke, Alzheimer’s Disease, Parkinson’s Disease, diabetes and hepatitis. Daniel claimed that her bogus cancer cure had a success rate of between 60 percent and 80 percent for the most advanced forms of cancer.
The evidence presented at trial showed that Daniel’s treatment did not cure anyone of cancer, nor was it was made from herbs from around the world or blended for an individual patient, as she has promised patients. Chemical analyses determined that the product contained sunscreen preservative and beef extract flavoring, among other ingredients, none of which could have had any effect on cancer or other diseases, according to expert testimony.
“The scope of Daniel’s fraud was breathtaking,” said United States Attorney André Birotte Jr. “Daniel robbed victims of more than money - she also stole their hopes and dreams for a cure. Daniel is responsible for a shockingly cold-hearted fraud that has brought her a richly deserved federal prison sentence.”
Lisa Malinowski, Special Agent in Charge of the Food and Drug Administration’s Office of Criminal Investigations (OCI), Los Angeles Field Office, stated: “The defendant in this case exhibited a blatant and heartless disregard for the desperately sick and vulnerable patients she repeatedly victimized. Today’s sentence aptly reflects the consequences of Dr. Daniel’s actions and demonstrates OCI’s commitment to relentlessly investigating modern-day snake oil salesmen that prey on sick and defenseless victims.”
The evidence presented during the trial showed that Daniel used her status as a Pentecostal minister to create a bond of trust with members of the Evangelical Christian community, an affinity that gave her access to victims to whom she sold bogus hope and worthless treatments. Daniel promoted the product under a variety of names – including “C-Extract,” “the natural treatment” and “the herbal treatment” – through a program televised on the Trinity Broadcasting Network.
Daniel and her employees falsely claimed that the product was made with herbs from around the world and was manufactured in a laboratory according to the needs of each patient. Depending on the purported level or strength of the herbal product, Daniel would charge her customers up to $4,270 for one week’s worth of the herbal product. She offered a six-month treatment program for between $120,000 and $150,000.
Daniel “personally met with her victims in her medical office, looked them in the eyes, and represented that she had a miracle, herbal cancer cure that could save their lives,” according to the government’s sentencing memorandum.
During the trial, the jury heard testimony from 28 victim-patients, or close family members of victims who had died while taking Daniel’s product. Some described how Daniel urged them to avoid conventional cancer treatments, such as radiation or chemotherapy, because such therapies would reduce the efficacy of Daniel’s herbal “cure.” Family members testified that Daniel also forbid her cancer patients to take any pain relief medication for the same reason. Some of these patients spent the last few months of their lives in agony as the cancers spread throughout their bodies. The evidence presented at trial showed that a significant percentage of Daniel’s patients died within three to six months after they started taking Daniel’s bogus cure.
According to testimony at trial, one victim who had been diagnosed with metastatic breast cancer contacted Daniel and was told that chemotherapy would not help. After the victim traveled to Southern California, Daniel told the victim that the herbal treatment program would shrink her tumors and kill her cancer cells. For almost five months, the victim and her husband paid Daniel thousands of dollars for the herbal product. After taking the herbal “cure” for four months and within two weeks after Daniel pronounced her to be cancer-free at a party held for patients, the victim died. The cancer had spread from her breasts to her bones and brain.
“Daniel repeatedly demonstrated a merciless and callous indifference to the suffering of her patients and their family members,” prosecutors wrote in court papers.
Daniel and employees working at her direction induced approximately 60 victims to send more than $1.2 million to Daniel’s Sonrise clinic. In an attempt to operate the business under the guise of a non-profit organization, Daniel instructed patients to classify their medical service payments as donations. According to documents filed with the court, for the tax years 2002 through 2004, Daniel failed to report nearly $1.3 million on her corporate income tax returns, which resulted in a tax loss to the government of approximately $438,809. Similarly, Daniel failed to report approximately $315,109 on her personal income tax returns for the same time period, resulting in an additional tax loss to the government of $73,895.
“Christine Daniel used her position of trust -- as a medical doctor and Pentecostal minister -- to defraud vulnerable cancer patients in a $1.2 million dollar scheme,” said Jose A. Gonzalez, Special Agent in Charge of IRS Criminal Investigation’s Los Angeles Field Office. “Defendant Daniel’s convictions for failing to pay federal income taxes on the proceeds of her fraudulent cancer fraud scheme confirm her greed and the criminal nature of her character. Today, Justice is served, and Christine Daniel is being held accountable for her criminal actions.”
The evidence presented at trial showed that Daniel attempted to influence the testimony of at least two witnesses who were called to testify before the grand jury. One of those witnesses, a long-time patient of Daniel, admitted during trial that he lied to both law enforcement officers and the federal grand jury after being improperly influenced by her.
The investigation of Daniel was conducted by IRS - Criminal Investigation, the U.S. Food and Drug Administration’s Office of Criminal Investigations, and the Medical Board of California.
Release No. 13-071
Salinas Man Charged with Child Sexual AbuseRead the Press Release
SAN JOSE - David John Stevens has been arrested and charged with engaging in sexually explicit activity with a minor and distributing child pornography, United States Attorney Melinda Haag announced. The charges are based on allegations that he molested a prepubescent girl and distributed video images of that molestation over the Internet.
Stevens was arrested on Wednesday in his home in Salinas, only five days after a “John Doe” arrest warrant was issued in Washington, D.C., and just over 24 hours after U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) issued a public appeal for leads in the case. Stevens was taken into custody by HSI special agents and investigators with the Salinas Police Department.
According to the complaint, Stevens was identified by a member of the public after she saw images from videos the defendant had posted on the Internet. The reporting party saw three images (which had been sanitized for public dissemination) on the website of the National Center for Missing and Exploited Children. Upon recognizing Stevens in the photographs, the witness notified the authorities.
The complaint alleges that Stevens filmed the molestations in a soundproof room located in the garage of his home. The complaint further states that, in addition to positively identifying Stevens, the reporting party was able to identify the room in which the molestations allegedly had occurred.
United States Attorney Melinda Haag made this comment following the arrest:
There is no higher priority for my office than protecting the youngest and most vulnerable members of our community: our children. My office will continue to work closely with our federal and state law enforcement partners to carry out that mission. I congratulate the agents at the Department of Homeland Security, as well as the fine officers of the Salinas Police Department, for their quick work in apprehending this suspect. I also thank the person who came forward and reported this conduct to the authorities. We could not do our work without the assistance of the public.
Stevens made his initial appearance in federal court yesterday before The Honorable Howard R. Lloyd, United States Magistrate Judge. He was remanded into the custody of the United States Marshal pending arraignment on June 6, 2013, at 10:30 a.m., before The Honorable Paul S. Grewal, United States Magistrate Judge.
The maximum statutory penalty for Count One, persuading or inducing a minor to engage in sexually explicit activity, in violation of 18 U.S.C. § 2251(a), is not less than 15 nor more than 30 years’ imprisonment and a fine of $250,000. The maximum penalty for Count Two, distributing child pornography, in violation of 18 U.S.C. §2252(a)(2), is not less than 5 nor more than 20 years’ imprisonment and a $250,000 fine. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
David R. Callaway is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elise Etter. The prosecution is the result of a nationwide HSI initiative to protect children from sexual predators in close collaboration with the Salinas Police Department.
All members of the public are encouraged to contact HSI through its toll-free hotline, 1-866-347-2423, if they have further information about this matter.
In addition, suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, via its toll-free 24-hour hotline, 1-800-843-5678.
Please note that a complaint contains only allegations against an individual and, as with all defendants, Stevens, must be presumed innocent unless and until proven guilty.
(Stevens Complaint (REDACTED VERSION) )
Rosebud Man Sentenced for Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota man convicted of Assault with a Dangerous Weapon was sentenced on May 15, 2013 by U.S. District Judge Roberto A. Lange.
Aaron Sharpfish, age 21, was sentenced to 394 days in custody, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.
Sharpfish was indicted by a federal grand jury on April 10, 2012 and pled guilty to the charge on March 5, 2013.
The conviction stems from an incident that took place on November 21, 2011, when Sharpfish hit the victim causing him to fall to the ground. Sharpfish then kicked the victim in the head and face several times causing a fracture to the victim’s eye.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
Sharpfish was remanded to the custody of the U.S. Marshal.
Rosebud Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota man convicted of Abusive Sexual Contact was sentenced on May 14, 2013 by U.S. District Judge Roberto A. Lange.
Robert I. Pomani, age 21, was sentenced to 24 months’ imprisonment, 5 years of supervised release and a $100 special assessment to the Federal Crime Victims Fund.
Pomani was indicted by a federal grand jury in October of 2012. He pled guilty to a Superseding Information on February 15, 2013. The conviction stems from an incident in December of 2010 when Pomani was in a relationship with the victim. At that time, Pomani was 19 years old and at least 4 years older than the victim. While in the relationship, Pomani engaged in conduct which resulted in abusive sexual contact.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Pomani was immediately turned over to the custody of the U.S. Marshal.
Ronald Jay Miller Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on May 14, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, RONALD JAY MILLER, a 56-year-old resident of Helena, pled guilty to access with the intent to view child pornography. Sentencing has been set for August 9, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
From approximately 2011 until October 18, 2012, MILLER accessed visual depictions of children engaged in sexually explicit conduct on his computer.
Montana Probation and Parole conducted a probation search of MILLER's residence on October 18, 2012, in reference to his possession of firearms at his residence. At that time, MILLER's computer and a number of floppy discs were seized.
While looking for information on MILLER's computer and floppy discs for firearm information, law enforcement located an image of a child engaged in sexually explicit conduct. Forensic examination revealed that MILLER accessed images and videos containing children engaged in sexually explicit conduct using his computer and the Internet. The Internet access dates were between approximately June 2011 and October 2012.
MILLER faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to 20 years, a $250,000 fine, and lifetime supervision.
The investigation was conducted by the Montana Probation and Parole.
Ranch Owner in Young County Sentenced to 10 Years in Federal Prison for Shooting A Crop-Dusting Aircraft Flying Near His RanchRead the Press Release
Multiple Bullets Struck and Damaged Aircraft
WICHITA FALLS, Texas — Stephen Paul Riley, 41, of Olney, Texas, was sentenced this morning by U.S. District Judge Reed C. O’Connor, in federal court in Wichita Falls, Texas, to 120 months in federal prison and ordered to pay $3600 in restitution, following his guilty plea in January 2013 to an Indictment charging one count of destruction of an aircraft. Riley has been in federal custody since his arrest on May 10, 2013, for violating the conditions of his pretrial release. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, at approximately 11:40 a.m., on February 22, 2008, as a pilot flew his crop-dusting aircraft over property adjacent to the Flying Lead Ranch (FLR), a commercial hunting and residential property owned and occupied by Riley, Riley shot the aircraft with a firearm, striking it with multiple bullets and damaging the aircraft. One bullet struck the rudder cable and nearly severed it. A bullet or bullet fragment also struck the V-strut bar, approximately one and one-half inches from the connector bolt. Bullets, or bullet fragments, caused a hole in the aircraft’s left rear wing and indentations on the plane’s left side. The bullet holes and other damage indicated that the aircraft had been shot by someone on the ground discharging a firearm upward into the air. The aircraft was leased by Keeter Aerial Spraying, of Olney, for commercial crop-dusting services in Texas and Oklahoma.
Documents filed further state that prior to the above-stated date, Riley threatened Keeter’s owner, both in person and by phone, that he would shoot down any crop-duster that flew over his hunting ranch. In August 2010, officials with Texas Parks and Wildlife, seeking evidence of illegal hunting, executed a search warrant at the FLR and discovered a disc that contained video footage of Riley firing approximately 23 shots at another Keeter aircraft spraying the same field in July 2007. In September 2010, when questioned by a Texas Ranger, Riley admitted to shooting at Keeter aircraft on more than one occasion, as he had threatened to do.
The case was investigated by the Texas Rangers and the Texas Parks and Wildlife Department. Assistant U.S. Attorney Katherine Miller prosecuted.