Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 15 May 2013
Ten-Year Sentence in RICO eBay Fraud CaseRead the Press Release
MOBILE, AL-- United States Attorney Kenyen R. Brown announced today that John Robert McGhee, an Atlanta, Georgia area resident, who previously pleaded guilty to a Racketeer Influenced and Corrupt Organization (RICO) conspiracy, in violation of Title 18, United States Code, Section 1962(d), was sentenced today to a term of ten years imprisonment by Chief Judge William Steele.
McGhee, who admitted his involvement in buying and selling stolen items, was initially allowed to remain on conditions of release pending sentencing. His release was revoked after he was arrested by the Georgia Bureau of Investigation (GBI) when found in possession of close to a million dollars of stolen Spanx. Thereafter, McGhee did not receive the benefit of acceptance of responsibility points for his guilty plea in the calculation of his sentencing guideline range nor did he receive consideration for a substantial assistance motion.
The case arose from an investigation by the United States Secret Service, who were assisted by the United States Postal Inspection Service and the Georgia Bureau of Investigation (GBI). The eBayProAct team also assisted the Secret Service. The case is being prosecuted by Assistant United States Attorney Deborah Griffin.
Synthetic Drug Supplier on the RunRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs Specialist
Follow us on Twitter @NDWVnews
CLARKSBURG, WEST VIRGINIA -- JOHN N. SKRUCK, 57, of Clarksburg, has absconded from his court-ordered bond and is now the subject of a nationwide manhunt.
SKRUCK was scheduled to stand trial in United States District Court on Tuesday, May
14, 2013, for Conspiracy to Distribute Schedule I Controlled Substances and Schedule I Controlled Substance analogues, referred to as “bath salts,” distribution and possession with intent to distribute “bath salts” on multiple occasions between September of 2011 and April of 2012, maintaining drug involved premises; money laundering and structuring.United States Attorney William J. Ihlenfeld, II, announced that on Monday, May 13,
2013, it was discovered that SKRUCK had not returned from an approved out of town travel. Federal Magistrate Judge John S. Kaull issued a warrant for SKRUCK’s arrest and SKRUCK’s name was entered into a national fugitive database so that other jurisdictions will know that he is wanted.Anyone with information about SKRUCK’s whereabouts should call law enforcement officials at 304-623-0486.
It should be noted that the charges contained in the Indictment are merely accusations and not evidence of guilt, and that SKRUCK is presumed innocent until and unless proven guilty.
Photo of JOHN NICHOLAS SKRUCK
Smuggling Ring Sentenced in Los Angeles for Criminal Trafficking of Endangered Rhinoceros HornRead the Press Release
Vinh Chuong “Jimmy” Kha, 50, and Felix Kha 26, were sentenced today in federal district court in Los Angeles to serve 42 and 46 months, respectively, in prison for crimes related to illegal international trafficking of rhinoceros horn, announced Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice and André Birotte Jr., U.S. Attorney for the Central District of California.
In addition to the prison sentences, the two defendants were ordered to pay a total of $20,000 in criminal fines and pay a $185,000 tax fraud penalty and assessment. In addition, Jimmy Kha’s Win Lee Corporation was ordered to pay a $100,000 fine. Jimmy and Felix Kha, along with Win Lee Corporation, were also ordered to pay a total of $800,000 in restitution to the Multinational Species Conservation Fund, a statutorily created fund that is managed by the U.S. Fish and Wildlife Service (FWS) to support international efforts to protect and conserve rhinos and other critically endangered species around the world. The defendants previously abandoned their portion of interest in $2 million worth of rhino parts and vehicles seized in the investigation.
The Khas are among several individuals charged so far with federal crimes as a result of “Operation Crash,” an ongoing FWS-led investigation of the black market rhino horn trade named for the term used to describe a herd of rhinoceros.
“The Khas engaged in egregious criminal conduct by taking the horns of a species on the brink of extinction and making millions of dollars in the illegal trade in rhino horns,” said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “The Khas sentence sends a strong message that those who violate the law by illegally trading in rhino horns will be held accountable to the fullest extent of the law.”
“The Khas’ smuggling operation fueled international demand and played a significant role in driving the price of rhino horn to nearly $25,000 per pound,” said U.S. Attorney Birotte. “It was that rising value of rhino horn that encouraged ruthless poachers to scour the South African wilderness in search of profits. The Khas played a role in pushing species like the African black rhino to the brink of extinction, which is why we aggressively prosecuted this case and sought lengthy prison terms.”
“On average, a rhino is slaughtered in Africa every 11 hours to feed the black market for their horns,” said FWS Director Dan Ashe. “Criminals in this country who are cashing in on this illegal trade should know that the United States will hold them accountable for their crimes and do everything possible to protect wild populations of rhinos.”
On Sept. 14, 2012, the Khas pleaded guilty to charges of conspiracy, smuggling, wildlife trafficking in violation of the Lacey Act, money laundering and tax fraud, and Win Lee Corporation pleaded guilty to smuggling and wildlife trafficking in violation of the Lacey Act. In February 2012, at the time of the arrest of Jimmy and Felix Kha, FWS agents seized rhinoceros mounts and horns, $1 million in cash, approximately $1 million in gold ingots, jewelry, watches and precious stones, a 2009 BMW 759 Li Sedan and a 2008 Toyota Forerunner from the defendants and their co-conspirators. Under the plea agreement, the defendants agreed to the forfeiture of these items, which include nine rhino horns and six rhino feet. Ultimately, prior to sentencing, the defendants formally abandoned all the wildlife and the instrumentalities of the crimes seized from them (such as the vehicles) to the United States. The Khas’ portion of the seized cash and gold, proceeds of their illegal activities, will be used to pay the $800,000 in restitution ordered at sentencing.
Background on RhinosWith no known predators other than humans, rhinoceros are a prehistoric species and one of the largest herbivores on earth. All rhinoceros species are protected under U.S. and international law, and the black rhinoceros is listed as endangered. Despite national and international protection efforts dating back to 1976, the demand for rhino horn and black market prices have skyrocketed in recent years due to the value that some cultures have placed on the horns for ornamental carvings, good luck charms or alleged medicinal purposes. This has led to a decimation of the global rhinoceros population, which has declined by more than 90 percent since 1970. By the peak of the Kha’s wildlife trafficking conspiracy in 2011, 448 wild rhinos had been slaughtered for their horns in South Africa alone. Between 2007 and the end of 2011, the poaching of wild South African rhinos increased a tragic and astonishing 3,400 percent, rising from a low of 13 animals in 2007 to 448 animals in 2011.
The Criminal Conduct
Over the course of at least two years from January 2010, through February 2012, Jimmy and Felix Kha conspired with individuals throughout the United States to purchase white and black rhinoceros horn despite knowing that these animals were protected by federal law as endangered and threatened species. Although Jimmy Kha paid, on average, between $5,000 to $7,000 per pound of rhinoceros horn, the horn acquired by the defendants had a fair market value of at least $1 million to $2.5 million. Under the plea agreement, the defendants admitted that they purchased the horns in order to export them overseas to be sold and made into libation cups or used for traditional medicine; made illegal payments to Vietnamese customs officials to ensure clearance of horn shipments to that country; and knowingly evaded income taxes owed in 2009 and 2010.
U.S. Attorney Birotte and Assistant Attorney General Moreno commended FWS and its partners for their outstanding work on this investigation. Assisting agencies included the U.S. Postal Inspection Service, the Internal Revenue Service Criminal Investigations, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorneys Joseph O. Johns and Dennis Mitchell of the U.S. Attorney’s Office for the Central District of California, and Shennie Patel, a Trial Attorney with the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.
Sioux Falls Man Guilty of Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that Tajahn Clinton, age 35, of Sioux Falls, South Dakota appeared before U.S. District Judge Karen E. Schreier on May 15, 2013, and pursuant to a plea agreement pled guilty to Count 2 of the Fourth Superseding Indictment that charged Clinton with Sex Trafficking by Force, Fraud, or Coercion.
The charge carries a mandatory minimum prison sentence of 15 years and a maximum of life. In the plea agreement, the United States and Clinton agreed to a specific sentence of 402 months. The Court has deferred acceptance of the plea agreement pending the results of the presentence report.
“Those who traffic South Dakota children and young women will find no refuge from law enforcement. We are behind every corner and we will aggressively investigate and prosecute anyone who tries to profit off the sexual exploitation of our most vulnerable citizens,” said U.S. Attorney Johnson.
The investigation was conducted by Homeland Security Investigations, the Federal Bureau of Investigation, the Sioux Falls Police Department, Minnehaha County Sheriff's Office, and the South Dakota Division of Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorneys Kevin Koliner and Jeffrey Clapper.
Sentencing has been scheduled for August 12, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Sex Offender Pleads Guilty to Child Porn, Faces at least 15 Years in PrisonRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Grandview, Mo., man who is a registered sex offender pleaded guilty in federal court today to receiving child pornography over the Internet.
Robert E. Shepherd, 40, of Grandview, pleaded guilty before U.S. District Judge Dean Whipple to the charge contained in a Nov. 27, 2012 federal indictment.
Shepherd was on state parole at the time of the federal offense after being convicted on state charges of statutory rape and statutory sodomy in Cass County in 2000 and of statutory sodomy in Clay County in 1999. He absconded from state parole during the federal criminal investigation and was a fugitive from justice for almost four years. Shepherd was arrested at the Mexican border and his parole revoked in December 2011, for which he served a year in state prison before being indicted and taken into federal custody.
Shepherd brought his laptop computer to a computer repair facility in April 2008. Approximately a week later, a technician at the facility discovered at least one image of child pornography on the computer. The technician notified law enforcement officers, who retrieved the computer and obtained a search warrant for Shepherd’s residence. Officers seized additional computers and electronic media at Shepherd’s residence. Two videos of child pornography were discovered on the computers.
Due to his prior convictions of abusive sexual conduct involving a minor, Shepherd is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 40 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Grandview, Mo., Police Department and the Lee’s Summit, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Sanostee, N.M., Man Pleads Guilty to Federal Aggravated Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Lorenzo Begay, 49, an enrolled member of the Navajo Nation who resides in Sanostee, N.M., pleaded guilty this afternoon to an aggravated sexual abuse charge. Under the terms of the plea agreement, Begay will be sentenced to five years in federal prison followed by a term of supervised release to be determined by the court. Begay also will be required to register as a sex offender.
Begay was arrested in Jan. 2012, on a criminal complaint alleging that he sexually abused a child under the age of 12 from July 2010 through June 2011, within the boundaries of the Navajo Nation Reservation. Begay subsequently was indicted on that same charge. According to court filings, the investigation into Begay was initiated after law enforcement authorities received a referral from the Navajo Nation Division of Social Services after the child victim disclosed the sexual abuse to a school social worker.
During today’s hearing, Begay entered a guilty plea to a felony information charging him with aggravated sexual abuse and admitted sexually abusing the child victim. Begay was remanded into the custody of the U.S. Marshals Service after entering his guilty plea. He will remain detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque and Farmington offices of the FBI and the Shiprock Office of the Navajo Nation Division of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Removed Alien Charged with Violating Immigration LawsRead the Press Release
ERIE, Pa. - A former resident of Oaxaca, Mexico, has been indicted by a federal grand jury in Erie on charges of violating federal immigration laws, United States Attorney David J. Hickton announced today.
The two-count indictment named Rogelio Valencia-Sanchez, 42, as the sole defendant. According to the indictment presented to the court, on or about April 22, 2013, Valencia-Sanchez was found to be unlawfully present within the United States. Valencia-Sanchez had been previously ordered deported and removed from the United States on December 6, 1990 and was removed from the United States on March 29, 2005. The defendant subsequently reentered the United States, and was found to be present in this country without the permission from the Secretary of the Department of Homeland Security. In addition, Valencia-Sanchez also possessed a fraudulent Permanent Resident card.
The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christine A. Sanner is prosecuting this case on behalf of the government.
The Pennsylvania State Police and the Bureau of Customs and Border Protection 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.
Removed Alien Charged with Illegally Re-entering United StatesRead the Press Release
ERIE, Pa. - A former resident of Chiapas, Mexico has been indicted by a federal grand jury in Erie on a charge of violating federal immigration laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Alejandro Perez-Diaz, 30, as the sole defendant. According to the indictment presented to the court, on or about April 22, 2013, Perez-Diaz was found to be unlawfully present within the United States. Perez-Diaz had been previously ordered deported and removed from the United States on March 18, 2010 and was removed from the United States on August 20, 2012. The defendant subsequently reentered the United States, and was found to be present in this country without the permission of the Secretary of the Department of Homeland Security.
The law provides for a maximum total sentence of 2 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 Christine A. Sanner is prosecuting this case on behalf of the government.
The Pennsylvania State Police and the Bureau of Customs and Border Protection 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.
Pike County Man Charged with Receiving and Distributing Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 49-year-old Dingmans Ferry resident was indicted Tuesday by a federal grand jury in Scranton for receiving and distributing child pornography.
According to United States Attorney Peter J. Smith, Richard A. Lewis, is charged with using a computer between January and May of 2013, to receive and distribute child pornography.
The indictment of Lewis stems from an investigation by special agents of Homeland Security Investigations and Provincial Police from Ontario, Canada.
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 internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the mandatory minimum penalty under the federal statute is 15 years’ imprisonment. The maximum penalty is 40 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Petro AmericaRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that five defendants were convicted in federal court today for their roles in a $10.2 million securities fraud and wire fraud conspiracy that victimized thousands of investors across the United States and Canada who bought shares in Petro America Corporation, which was purported to be a profitable company with $284 billion in assets.
“Petro America was a sham company from the beginning, a get-rich-quick scheme that preyed on its investors,” Dickinson said. “Despite the wildly exaggerated claims made by these defendants, Petro stock was worth about as much as a handful of used Kleenex.”
More than 12,000 victims invested in excess of $10.2 million in Petro America. Contrary to the fraudulent representations the defendants made to victim-investors, Petro America had no oil, no realistic prospects for obtaining, transporting or storing large amounts of oil, no significant assets, no revenue and no employees other than the CEO.
Isreal Owen Hawkins, 57, and Martin Roper, 47, both of Kansas City, Kan.; William Miller, 42, of Independence, Mo.; Johnny Heurung, 59, of Saint Paul, Minn.; and Teresa Brown, 55 of Bandera, Texas were found guilty of all 15 counts contained in a June 15, 2011 federal indictment. Hawkins was taken into custody immediately after the verdicts were returned, pending a bond hearing next week when the court will rule on the government’s motion to revoke his bond. The other co-defendants were continued on bond until the sentencing hearing, which has not yet been scheduled.
In addition to the five co-defendants convicted at trial, nine co-defendants have pleaded guilty to their roles in the scheme.
Evidence introduced during the trial indicated that the defendants participated in a conspiracy to commit securities fraud and wire fraud that began Sept. 1, 2008. They promoted Petro America and sold shares to investors, although none of them had ever been licensed to sell securities and despite cease and desist orders from both Missouri and Kansas.
In an attempt to enable Petro to continue selling its stock after the Missouri cease and desist order was issued on Nov. 12, 2008, and to enable the conspirators to continue to profit, Hawkins gifted billions of shares to co-defendants. These secondary sellers agreed to sell the stock and they often returned some of the proceeds as kick-back payments to Hawkins and others. The secondary sellers often represented that they were merely investors selling their own shares; they did not disclose that cease and desist orders had been issued, nor did they disclose that most or all of the shares had been gifted to them. Almost no investor proceeds were being reinvested by Petro; instead, conspirators were spending investor proceeds on personal expenditures.
The defendants used religious language in their pitches and often recruited through churches. Hawkins cultivated relationships with numerous ministers, whom he dubbed the Ministers Alliance. The Ministers Alliance was a group of about 15 ministers (most of whom resided in the Kansas City area) who supported and promoted Petro America. He gave them white fedora hats and millions of Petro shares, which he encouraged them to sell secretly, accepting kick-backs from the proceeds. Members of the Ministers Alliance sold Petro shares to their congregants and others. The Ministers Alliance frequently met at restaurants and participated in weekly conference calls with hundreds of investors in dozens of states.
Roper, a member of the Ministers Alliance, was involved with Petro from its inception. Hawkins gifted a large amount of shares to Roper, who was named in the Missouri cease and desist order; other persons sold shares for Roper and split the proceeds with him. He also continued to sell shares himself. Roper spent $111,296 from his bank account and gave some of the proceeds to Hawkins. In April 2007, Roper bought a Hummer H2 for $20,970 and put on a vanity license plate APETRO2.@
Miller, who was also involved from the beginning, sold Petro stock to at least 43 investors from Aug. 18, 2009, to Nov. 8, 2010, receiving at least $104,375 in proceeds. Miller accepted 50 million shares from Hawkins for bringing his multi-level marketing contacts to Petro.
False Claims
The sale of Petro America stock was accomplished by making innumerable false misrepresentations and omissions to investors. For example, defendants falsely claimed that Petro America was worth $284 billion and Petro America stock was worth $24 per share in order to induce people to invest. There was no basis for those numbers.
Hawkins approved a series of press releases that were materially misleading and failed to disclose material facts related to investing in Petro America.
Heurung and Brown sent e-mails to investors in June 2009, falsely claiming that Petro America had gone public and its stockholders had become millionaires. In reality, Petro America had not been publicly listed on any exchange, nor had it merged with any company that was publicly traded.
Defendants fraudulently attempted to create the appearance that Petro America had tangible assets. This was done by swapping stocks for speculative, unvested, future interests in mining claims (which they called mines), non-producing oil fields, and other so-called assets, in order to falsely claim that Petro presently had tangible assets.
Personal Expenditures
From September 2008 through April 2010, Hawkins received nearly $2 million from Petro investors into accounts he controlled. Hawkins made large withdrawals of investor proceeds for personal expenses whenever he wished. Very little of these funds were reinvested into the company. Instead, Hawkins used investor money to purchase such items as a Chrysler 300, a Hummer H3, a 2004 Mercedes S430, 19 designer suits totaling $10,303 that were purchased on eBay and a $5,700 fur coat. In October 2009, Hawkins attempted to purchase a lakefront house in Kansas City, Kan. The purchase fell through, but Hawkins continued to make monthly rental payments of $3,025, which totaled at least $42,815. In addition, Hawkins paid himself a salary of $595,000 and had a contract that provided a guaranteed bonus of $175,000, a company car and a dining card.
From June 2009 through April 2010, Brown spent at least $542,197 of Petro America investor proceeds on personal expenditures, including a boat, an SUV, travel to Switzerland, Cape Cod, Europe, Panama and elsewhere, several expensive handbags, designer luggage, home design items, more than $81,000 worth of jewelry and the mortgage on a timeshare in Virginia Beach.
Additional Charges
In addition to the criminal conspiracy, Hawkins was convicted of one count of money laundering, two counts of wire fraud, one count of securities fraud and one count of structuring financial transactions in order to evade federal reporting requirements. Brown was also convicted of six counts of wire fraud and one count of securities fraud. Heurung was also convicted of one count of wire fraud. Miller was also convicted of one count of wire fraud and one count of money laundering.
Each of the defendants must forfeit to the government any property derived from the proceeds of the offenses, including money seized from various bank accounts, several vehicles, jewelry and a 13-piece set of Louis Vuitton luggage.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about eight hours over two days before returning the guilty verdicts to U.S. District Judge Brian C. Wimes, ending a trial that began April 17, 2013.
Under federal statutes, each of the defendants is subject to a sentence up to five years in federal prison without parole on the conspiracy count, plus sentences for any additional counts. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
Additional Defendants
In addition to the five co-defendants who were convicted today, nine co-defendants have pleaded guilty to their roles in the criminal conspiracy.
The Rev. Edward D. Halliburton, 58, of Kansas City, Kan., pleaded guilty to his role in the conspiracy. He received nearly $400,000 from the sale of Petro stock. Halliburton, who has been a pastor for more than 20 years, was the president of the Ministers Alliance. He sold millions of shares to investors. He represented that he was selling his own shares, when in reality most of the shares had been gifted to him for that purpose as an attempt to work around the cease and desist orders. He failed to disclose to investors that he was not licensed to sell stock. From October 2009 to October 2010, Halliburton sold at least $369,605 in Petro America stock to more than 100 investors in the United States and Canada. Halliburton paid approximately $50,000 in kick-backs to co-conspirators from the proceeds of those sales.
Joseph Harrell, 51, of Waco, Texas, who acted as the CFO of Petro America, pleaded guilty to his role in the conspiracy. He received nearly $400,000 from the sale of Petro stock. Harrell, a minister, was also associated with the Ministers Alliance. He sold millions of shares to investors. He represented that he was selling his own shares, when in reality most of the shares had been gifted to him for that purpose as an attempt to work around the cease and desist orders. He failed to disclose to investors that he was not licensed to sell stock. Harrell sold stock to at least 90 investors, depositing $385,460 into his bank account. Harrell tried to protect his newly-acquired assets by placing them in LLCs. He drove nice cars and was living significantly better than prior to his involvement in Petro. He bought World Series tickets, for example, and rented cars for $423 per week. He frequently used Petro money to pay for meals at expensive restaurants for himself and others. During this time, Harrell was receiving an income-dependant Social Security disability benefit. Until at least May 2010, Harrell was receiving food stamp benefits. Acting as CFO of Petro, Harrell wrote checks for purported Petro expenditures that he knew were not legitimate business expenses.
Russell Hopkins, 49, of Tuscaloosa, Ala., pleaded guilty to his role in the conspiracy. Hopkins promoted Petro America and sold shares to investors, despite cease and desist orders from both Missouri and Kansas, although he was never licensed to sell securities. From June 2009 through February 2011, Hopkins made at least $673,465 from the sale of Petro stock to at least 61 investors throughout the United States.
Allen Collins, 56, of Raymore, Mo., pleaded guilty to his role in the conspiracy. Collins promoted Petro America and sold shares to investors, despite cease and desist orders from both Missouri and Kansas, although he was never licensed to sell securities. From September 2009 through October 2010, Collins made at least $172,774 from the sale of Petro stock to at least 57 investors throughout the United States, in addition to $13,300 that he received from Petro for consulting fees and other payments. Collins, a retired welder, was part of the Minister’s Alliance.
Teresa Hill, 56, of Kansas City, pleaded guilty to her role in the conspiracy. Hill was a team leader who began recruiting investors for Petro America in 2008, although she has never been licensed to sell securities. Initially, team leaders like Hill would hold their own small meetings with the shareholders they brought in. In September 2008, conspirators began holding weekly meetings for all shareholders.
Charles Hooker, 50, of Kansas City, pleaded guilty to his role in the conspiracy. Hooker was a team leader who recruited investors and sold shares of stock for Petro America. Hooker knew the Petro stock shares were not registered when he started selling them. Hooker has never been licensed to sell securities and did not check with the state of Missouri or with the Securities and Exchange Commission (SEC) to determine whether the company was registered, or whether it was legal for them to sell shares. After Hooker found out about the Missouri cease and desist order, he never contacted state regulators or an attorney to find out if it was legal to sell the shares. Hooker’s friends and family agreed to invest in Petro. Hooker’s plea agreement also refers to an investor in Beverly Hills, Calif., whom he persuaded to invest $150,000 in Petro America. Hooker, a minister, attended meetings of the Minister’s Alliance. Hooker did not purchase shares of Petro, but was gifted 80 to 90 million shares for bringing in investors. Hooker sold those shares for $100 for 100,000 shares. By April 2010, Hooker had sold all his shares and began selling shares that had been gifted to co-defendant Teresa Hill. The proceeds that weren’t spent were kept at the house, not in a bank. Hooker did not use a bank account and dealt mainly in cash.
Hooker and Hill sold their shares together in concert. A total of $67,258 in cash went into Hill’s accounts in 2007 and 2008. After that period, Hooker received at least $25,000 from the sale of Petro shares in concert with co-defendant Halliburton. The minimum loss attributable to Hooker and Hill’s conduct is $77,000, and the maximum is $144,258.
Brian Langenbach, 44, of Globe, pleaded guilty to his role in the conspiracy. Langenbach was not licensed to sell securities. He was self-employed as a cattle rancher during this time and he has not filed a federal tax return since 2003. Langenbach admitted that he sold Petro America stock to at least 180 investors, receiving at least $400,000 in proceeds, from Aug. 20, 2009, to March 2, 2010.
Curtis White, 57, of Independence, Mo., pleaded guilty to his role in the conspiracy. White was a minister in Grandview, Mo., when he became involved with Petro in September 2008. He was part of the Ministers Alliance. White received free shares of Petro stock and was told he would receive unlimited replacement shares as he sold his shares. From at least April 1, 2010, to Nov. 15, 2010, White sold almost 40 million shares of purported Petro stock to at least 156 investors. Most of these investors were not affluent. He sold his shares for $100 for 100,000 shares. Most paid for the stock in cash, and therefore the total amount of money that White made from Petro America is not clear. But his bank records show that White received at least $75,300 from his involvement in Petro.
Clarence D. Moore, 64, of Atlanta, Ga., pleaded guilty to his role in the conspiracy. Moore admitted that he lied to investors about his credentials as a Certified Public Accountant. Moore does not have a college degree, he has never been a Certified Public Accountant, and he is not a licensed tax preparer. In February 2010, however, Moore began doing accounting work on behalf of Petro America. He signed false documents related to Petro’s supposed assets, and other documents were signed on his behalf. These included investor “lulling letters” and false tax returns, which were designed to make investors believe that Petro’s supposed billions of dollars’ worth of assets had been verified by a professional C.P.A. Moore also signed an additional letter containing false representations about his credentials. In exchange, he received payments of at least $3,500. Moore was supposed to receive an additional $5,000 retainer, but never did.In January 2010, Moore was asked to help determine a valuation for Petro America’s assets and stock. Over the phone and without examining any documents or conducting any due diligence, Moore agreed on a figure of $24 per share. A letter was then circulated under Moore’s signature that indicated Petro had been valued by Moore, whom the letter falsely represented was a C.P.A., at $284 billion and $24 per share. In an introduction to the letter, on Petro America letterhead, Moore was described as a 1976 graduate of Atlanta College, a licensed C.P.A. in the state of Georgia, and “the first African-American accountant for Gulf Oil and also a former auditor for Exxon.” This letter was used to induce numerous investors to purchase purported stock in Petro America.
In actuality, Moore is not and has never been a C.P.A. Moore dropped out of Clark College after one semester following an incident where he was shot in the back of the head. Moore has had balance and equilibrium problems since that time. Recently, he has been homeless. Moore has spent time in prison or jail in each of the last three decades primarily for criminal forgery and fraud. He worked briefly as an accounting clerk for Gulf Oil in the 1970s. In 1972, he worked for Exxon, where he examined receipts from cash registers at service stations.
In the spring of 2010, Moore drove from Atlanta to Kansas City, Mo., to prepare tax returns for Petro America. Although the filing system was “atrocious” and the returns contained false, incomplete, and misleading information, Moore nevertheless signed the returns and filed them with the IRS. The returns contained unsupported, sky-high valuations for Petro.
Web Site Support For Fraud Victims
Two Web sites have been established to collect information from the victims of the alleged securities fraud scheme and to provide information about the status of the case. Investors of Petro America are encouraged to provide information via an online form at www.postalinspectorsurvey.com/PetroAmerica. Due to the volume of expected responses, this process has been automated and placed online; all communication from potential victims regarding the case should be made via this Web site. Updates about the status of the case will be posted at www.justice.gov/usao/mow/divisions/petro.htm
This case is being prosecuted by Assistant U.S. Attorneys Daniel M. Nelson and Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation, the U.S. Postal Inspection Service and the Office of the Missouri Securities Commissioner.
Pennsylvania Man Sentenced for Scheme to Steal Funds Intended for Wife's DialysisRead the Press Release
PHILADELPHIA - Darwin D. Dieter, 53, of Kempton, PA, was sentenced late yesterday to 18 months in prison and was ordered to pay $532,333.51 restitution in connection with his thefts from a health care benefit program, the dialysis treatment center where his wife was receiving dialysis treatments. Dieter, a former employee of a direct mail company located in Hamburg, PA, stole checks that his insurance company issued between December 2010 and March 2011, for payment of his wife's dialysis treatments. Instead of paying for the dialysis treatments, Dieter kept and laundered the proceeds of the checks. Dieter pleaded guilty on January 28, 2013 to nine counts of theft from health care benefit programs, and three counts of money laundering.
In addition to the prison term and restitution, U.S. District Court Judge James Knoll Gardner ordered three years of supervised release, the first six months of which must be served on home confinement. Dieter must also pay a $1,200 special assessment and must forfeit his interest in two properties.
The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Mary E. Crawley.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pennsylvania Inmate Sentenced to Life in Prison for Violent Murder of Fellow InmateRead the Press Release
A federal inmate was sentenced today to life in prison for the violent murder of a fellow inmate in Pennsylvania’s Allenwood Correctional Complex, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Middle District of Pennsylvania Peter J. Smith.
Ritz D. Williams Jr., 32, of Gila River Indian Reservation, Sacaton, Ariz., pleaded guilty to one count of first degree murder and possession of a weapon on April 15, 2013. U.S. District Court Judge Yvette Kane sentenced Williams to life without the possibility of parole on May 15, 2013, for his role in the murder of fellow inmate Alvin Allery.
Williams and his co-conspirator Shawn Cooya were indicted by a federal grand jury in February 2008 and a superseding indictment was returned in July 2009.
According to court documents, Williams and Cooya aided each other in the premeditated murder of Allery. On Sept. 28, 2005, Williams and Cooya stabbed Allery 10 times with a homemade knife and repeatedly kicked him in the head and torso, which resulted in Allery’s death.
On Jan. 8, 2013, Cooya pleaded guilty to one count of first degree murder and was sentenced to serve life in prison on March 18, 2013.
The case was investigated by the Bureau of Prisons and the FBI. The case was prosecuted by Assistant U.S. Attorneys Wayne P. Samuelson and Michelle Olshefski of the Middle District of Pennsylvania, Trial Attorneys Julie B. Mosley and Mike Warbel of the Criminal Division’s Capital Case Unit, and Assistant U.S. Attorney C.J. Williams of the Northern District of Iowa and formerly with the Capital Case Unit.
Pennslyvania Inmate Sentenced to Life in Prison <br /> for Violent Murder of Fellow InmateRead the Press Release
A federal inmate was sentenced today to life in prison for the violent murder of a fellow inmate in Pennsylvania’s Allenwood Correctional Complex, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Middle District of Pennsylvania Peter J. Smith.
Ritz D. Williams Jr., 32, of Gila River Indian Reservation, Sacaton, Ariz., pleaded guilty to one count of first degree murder and possession of a weapon on April 15, 2013. U.S. District Court Judge Yvette Kane sentenced Williams to life without the possibility of parole on May 15, 2013, for his role in the murder of fellow inmate Alvin Allery.
Williams and his co-conspirator Shawn Cooya were indicted by a federal grand jury in February 2008 and a superseding indictment was returned in July 2009.
According to court documents, Williams and Cooya aided each other in the premeditated murder of Allery. On Sept. 28, 2005, Williams and Cooya stabbed Allery 10 times with a homemade knife and repeatedly kicked him in the head and torso, which resulted in Allery’s death.
On Jan. 8, 2013, Cooya pleaded guilty to one count of first degree murder and was sentenced to serve life in prison on March 18, 2013.
The case was investigated by the Bureau of Prisons and the FBI. The case was prosecuted by Assistant U.S. Attorneys Wayne P. Samuelson and Michelle Olshefski of the Middle District of Pennsylvania, Trial Attorneys Julie B. Mosley and Mike Warbel of the Criminal Division’s Capital Case Unit, and Assistant U.S. Attorney C.J. Williams of the Northern District of Iowa and formerly with the Capital Case Unit.
Pedro Fernandez-garcia Sentenced for Illegal ReentryRead the Press Release
PEDRO FERNANDEZ-GARCIA, age 40, a citizen of Mexico, was sentenced today in federal court by U. S. District Judge Sarah S. Vance, announced U. S. Attorney Dana Boente. FERNANDEZ was sentenced to six months imprisonment. In addition to the term of imprisonment, Judge Vance ordered that FERNANDEZ be placed on three years of supervised release following the term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of supervised release.
According to court documents, on February 5, 2013, FERNANDEZ pled guilty to a one-count indictment admitting he was an alien who was previously removed and was knowingly and unlawfully found in the United States, in Jefferson Parish, Louisiana on December 5, 2012, without the Attorney General or Secretary of the Department of Homeland Security, having expressly consented to his re-application for admission into the United States. FERNANDEZ’s sentence was subject to enhancement based on a previous felony conviction.
This case was investigated by United States Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Special Assistant United States Attorney Robert Weir.
New Orleans Man, Lam Nguyen, Sentenced for Theft of Government FundsRead the Press Release
LAM NGUYEN, age 40, a resident of New Orleans, was sentenced today in federal court by U. S. District Judge Stanwood R. Duval, Jr., to four years probation for theft of government funds, announced U. S. Attorney Dana J. Boente. NGUYEN was also ordered to pay restitution in the amount of $47,808 to the Social Security Administration.
According to court documents, NGUYEN’s mother was receiving social security benefits before her death. When she died, these benefits should have terminated. However, NGUYEN continued to receive the benefit checks, which were sent to his residence. NGUYEN deposited the checks into his bank account. NGUYEN converted these funds to his personal use knowing that he was not entitled to receive those benefits.
The case was investigated by the United States Social Security Administration- Office of Inspector General, and prosecuted by Assistant United States Attorney Loan “Mimi” Nguyen.
Mortgage Agent Pleads Guilty to Mortgage Fraud ConspiracyRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that Alexander Ende (35, Boynton Beach) yesterday pleaded guilty to conspiracy to commit bank fraud and mail fraud, and wire fraud affecting a financial institution. Ende faces a maximum penalty of 30 years in federal prison for his involvement in this mortgage fraud conspiracy.
According to the plea agreement, during the time frame of the conspiracy, Ende was a licensed mortgage agent working as a loan officer and branch manager for Apex Mortgage. His day-to-day responsibilities at Apex Mortgage included meeting with and pre-qualifying clients for mortgage loans. In or about late September 2006, Ende and two other individuals decided to purchase three condominium units at The Arbors at Carrollwood (“The Arbors”), a 390-unit condominium complex located at 3939 Ehrlich Road, in Tampa, Florida. Ende, in his role as a mortgage agent, assisted one of his co-conspirators with putting together three loan applications to secure mortgage loans for the purchases. Included in the loan applications, were various material misrepresentations made by Ende to ensure that the co-conspirator qualified for the mortgage loans. These material representations included false employment information, that the borrower intended to occupy all three condos as a primary residence, and the omission of other real estate owned by the borrower. Ende also failed to disclose to the mortgage lenders that the developer of The Arbors was providing tens of thousands of dollars in cash-back incentives to entice the purchase of these condo units.
In reliance on the materially false representations and omissions in the loan applications and the HUD-1 Settlement Statements, the mortgage lenders collectively loaned Ende’s co-conspirator $764,550.00 to purchase the three condo units, all of which have now fallen into foreclosure.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Simon Gaugush.
Montgomery County Man Faces Federal Indictment for Attempted Sex Trafficking and Interstate Transportation for ProstitutionRead the Press Release
Greenbelt, Maryland – A federal grand jury today returned an indictment charging Jean Claude Roy, a/k/a “Dredd the Don,” and “Dreddy,” age 30, of Germantown, Maryland, with attempted sex trafficking by force, fraud and coercion; and interstate transportation for prostitution.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Deputy Assistant Attorney General for the Department of Justice Civil Rights Division Roy L. Austin, Jr.; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.
“Protecting our communities from those who engage in human trafficking is a top priority for ICE Homeland Security Investigations,” said William Winter, special agent in charge of HSI Baltimore. "As a member of the Maryland Human Trafficking Task Force, HSI is committed to working with our law enforcement partners to investigate human trafficking, as well as working with our local non-governmental, community-based and faith-based organizations to identify, rescue and assist victims of trafficking.”
According to the six-count indictment, between December 9 and December 25, 2012, Roy attempted to force three individuals to engage in commercial sex acts, from which Roy benefitted financially. Further, the indictment alleges that Roy transported the three individuals across state lines to engage in prostitution and sexual activity.
Roy faces a minimum mandatory sentence of 15 years in prison and a maximum of life in prison for each of three counts on sex trafficking; and a maximum of 10 years in prison for each of three counts of interstate transportation for prostitution. An initial appearance has not yet been scheduled in U.S. District Court in Greenbelt. Roy is currently in state custody on related charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit www.justice.gov/usao/md/Human‑Trafficking/index.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, and Trial Attorney William E. Nolan of the U.S. Department of Justice Civil Rights Division's Human Trafficking Prosecution Unit, who are prosecuting the case.
Mississippi Corporation Pleads Guilty and Agrees to $ 1 Million Fine for Illegally Filling Protected WetlandsRead the Press Release
Mississippi-based Hancock County Land LLC (HCL) pleaded guilty today to the unpermitted filling of wetlands near Bay St. Louis, Miss., and agreed to pay a $1 million fine and take remedial measures for two felony violations of the Clean Water Act, announced Assistant Attorney General Ignacia S. Moreno of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney for the Southern District of Mississippi Gregory K. Davis. HCL admitted causing the unauthorized excavation and filling of wetlands on a 1,710 acre parcel of undeveloped property in Hancock County, west of the intersection of Route 603 and Interstate 10.
According to the charges filed in federal court in Jackson, Miss., when HCL purchased the property, it had been informed by a wetland expert that as much as 80 percent of its land was federally protected wetland connected by streams and bayous to the Gulf of Mexico and, therefore, that the property could not be developed without a permit from the U.S. Army Corps of Engineers. Such permits typically require that developers protect and preserve other wetlands to compensate for those they are permitted to fill and destroy.
The charges allege that in spite of additional notice of the prohibition against filling and draining wetlands without authorization, HCL, principally through its minority owner /general contractor, hired an excavation contractor to trench, drain and fill large portions of the property to lower the water table and thus to destroy the wetland that would otherwise have been an impediment to commercial development. In pleading guilty, HCL admitted that it knowingly ditched, drained and filled wetlands at multiple locations on the Hancock County property without having obtained a permit from the Army Corps of Engineers as required under the Clean Water Act.
It is a felony under the Clean Water Act for any person knowingly to discharge pollutants into waters of the United States, including wetlands, without a permit. A corporation convicted of this offense is subject to a penalty of not more than $500,000 per count.HCL agreed and was ordered to pay to the federal government a total penalty of $1 million ($500,000 for each of the two counts). HCL also agreed and was ordered by the court to restore and preserve the damaged wetlands as provided in separate agreements HCL reached with the U.S. Environmental Protection Agency (EPA) and a citizen group, the Gulf Restoration Network. The agreements require HCL to re-grade and then re-plant, with appropriate native vegetation, the wetland area it excavated and filled and donate approximately 272 acres of the southwest quadrant of its property to the Land Trust for the Mississippi Coastal Plain to be preserved in perpetuity. HCL is also required to fund its management and maintenance, to pay $100,000 toward the litigation costs of the Gulf Restoration Network, and to pay a civil penalty to the U.S. Treasury of $95,000.
HCL entered its plea before senior U.S. District Judge Walter J. Gex III."The defendant deliberately destroyed wetlands that are protected by the law," said Maureen O'Mara, Special Agent in Charge of EPA's criminal enforcement program in Mississippi. "This is a great example of local, state, and federal agencies working together to hold companies accountable for putting profit above the requirements of the law."
U.S. Attorney Davis praised the efforts of the EPA’s Office of Criminal Investigation for its diligent work in the investigation of this matter. Senior Trial Attorney Jeremy F. Korzenik of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division, and Assistant U.S. Attorney Gaines Cleveland are the prosecutors in charge of the case.
Real estate developer and HCL minority owner, William R. Miller, was charged in November 2012 with Clean Water Act violations related to the same unauthorized excavation and filling of wetlands near Bay St. Louis. That case is expected to be scheduled for trial over the next few months.
Members of Miami-Based Crack Cocaine Distribution Organization Sentenced from Three Years to Life in PrisonRead the Press Release
Fort Myers, Florida - U.S. District Judge John E. Steele has sentenced the following individuals to federal prison for their participation in a conspiracy to manufacture, possess with intent to distribute and distribution of cocaine base, also known as “crack cocaine.
Jude Sereme (29, Miami) Life Imprisonment 24 years, four months’ imprisonment Rick Jean (25, Miami) 20 years’ imprisonment Wilmane Jean (22, Miami) 10 years’ imprisonment Jophaney Hyppolite (28, Miami) Life Imprisonment Eric Bonita (25, Miami) Life Imprisonment Rashid Francois (26, Miami) 20 years’ imprisonment Jennifer Sander (30, Fort Myers) 10 years, ten months’ imprisonment Michael Dupin (29, Miami) 3 years, 10 months’ imprisonmentJude Sereme, Neheme Ductant, Rick Jean, Wilmane Jean, Jophaney Hyppolite, and Eric Bonita were found guilty following a three week trial that ended on October 5, 2012. Rashid Francois, Jennifer Sander and Michael Dupin pleaded guilty.
According to court documents, between July 2010 and October 2011, the above individuals operated as a drug trafficking organization (“DTO”), between Miami and Fort Myers. The DTO distributed crack cocaine in the North Fort Myers and South Fort Myers area.
This investigation was the result of a comprehensive and dedicated effort by the Cape Coral Police Department, Collier County Sheriff's Office, Drug Enforcement Administration, Federal Bureau of Investigation, Florida Department of Law Enforcement, Lee County Sheriff's Office and the Miami Police Department. The case was prosecuted by Assistant United States Attorney Jesus M. Casas.
Matthew Thomas Morledge Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on May 15, 2013, before Chief U.S. District Judge Dana L. Christensen, MATTHEW THOMAS MORLEDGE, a 31-year-old resident of Billings, was sentenced to a term of:
Prison: 24 months, consecutive to revocation sentence
Special Assessment: $100
Supervised Release: 3 years
MORLEDGE was sentenced in connection with his guilty plea to possession with the intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorneys Brendan M. McCarthy and Jessica T. Fehr, the government stated it would have proved at trial the following:
On August 27, 2012, a Montana Highway Patrol trooper stopped MORLEDGE for speeding in a construction zone in Gallatin County. The trooper asked MORLEDGE to exit the vehicle and as he did so, MORLEDGE reached with his right hand under his folded down center arm rest and either retrieved or concealed something. As he stood up, he worked his hand around his waist band. The trooper asked if MORLEDGE had weapons, and he denied it. The trooper asked for MORLEDGE to lift his shirt so he could observe his waistband. There was part of a plastic baggie protruding above the waistline of MORLEDGE's underwear below his navel. The trooper asked about the bag and MORLEDGE denied there was a bag. As the trooper patted MORLEDGE down for weapons, he felt large amounts of cash in his pockets. MORLEDGE said it was about $5,000, then said the amount was closer to $6,000. MORLEDGE admitted he was on federal probation for possession of explosives.
MORLEDGE was convicted in 2005 and re-sentenced in 2007 for distribution of methamphetamine and possession of a pipe bomb in two separate cases in Federal District Court in Billings. MORLEDGE was re-sentenced to 97 months in prison and was released to supervision on March 12, 2012.
A search of MORLEDGE's person and vehicle was authorized by his probation officer. During that search a baggie containing a white crystal substance that MORLEDGE admitted was "dope" was found in MORLEDGE's pants. Also found was the baggie full of suspected cutting agent and $7,530 in cash in MORLEDGE's shorts.
Testing of the narcotics found in MORLEDGE's shorts found that the 9.3 grams of suspected methamphetamine were in fact 88.4% pure methamphetamine, for a total of 8.2 grams of pure methamphetamine.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that MORLEDGE will likely serve all of the time imposed by the court. In the federal system, MORLEDGE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Luzerne County Man Charged with Jewelry Store Robberies, Bank Robbery and Insurance FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kirk Robinson, age 45, of Wilkes-Barre, Pennsylvania, was charged by a federal grand jury in Scranton Tuesday, with allegedly being involved in two Luzerne County jewelry store robberies, a bank robbery, as well as, an insurance fraud scheme.
According to United States Attorney Peter J. Smith, Robinson allegedly conspired with others to carry firearms in connection with the robbery of Steve Hydock Diamonds Jewelry store, Kingston, Pennsylvania, on May 5, 2008 and Dunay Jewelry store, Wilkes-Barre, Pennsylvania, on May 14, 2008. He was also charged with the involvement in an armed $17,000 bank robbery of the M&T Bank, Hanover Township, occurring on October 30, 2010. The indictment alleges that Robinson acted as a planner and getaway driver in those robberies. Additionally, the Grand Jury charged Robinson with a mail fraud scheme involving a fake jewelry robbery staged to fraudulently obtain $43,000 from an insurance company in 2009.
The case was investigated by the FBI, and the Kingston, Hanover Township and Wilkes-Barre Police Departments. Prosecution has been assigned to Assistant United States Attorney John C. Gurganus.Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Last of Nine Defendants Charged with Participation in Anthony, N.M., Drug Trafficking Ring SentencedRead the Press Release
ALBUQUERQUE – In Jan. 2012, the owners and operators of a pecan farm in Anthony, N.M., their two sons and four others were arrested on a 24-count indictment alleging federal drug trafficking and money laundering offenses. A ninth defendant, who was separately charged, also was arrested. By Aug. 2012, all nine defendants had pleaded guilty either to drug trafficking or money laundering charges, or both. Today, the case concluded with the sentencing of Sandra L. Portillo.
The successful conclusion of these cases was announced by U.S. Attorney Kenneth J. Gonzales, Joseph M. Arabit, Special Agent in Charge of the El Paso Division of the DEA, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation.
The individuals charged in the indictment included Oscar L. Portillo, Sr., 55, and his wife Sandra L. Portillo, 52, who were part owners and operators of “Pettit Farms and Nursery,” a pecan farm and nursery in Anthony (the pecan farm), and their sons, Matthew Portillo, 27, and Oscar Portillo, Jr., 30. Also charged were Cesar Ramos, 33, Fernando A. Ramos, 41, and Ruben Ortiz-Rivera, 48, of El Paso, Tex., and Natasha N. Coronado, 24, of Vinton, Tex. April Garcia, 37, a codes enforcement officer employed by the Horizon City (Texas) Police Department, was charged with money laundering in a criminal complaint.
Count 1 of the indictment charged all eight defendants with conspiracy to distribute cocaine and heroin. Count 2 charged certain defendants with maintaining a place for storing and distributing drugs. Counts 3, 5, 9 and 21 charged certain defendants with distributing cocaine and aiding and abetting the distribution of cocaine. Count 11 charged certain defendants with conspiracy to launder money and Counts 4, 6, 7, 8, 10, 12, 13, 14, 16, 22 and 23 charged certain defendants with money laundering. Count 15 charged certain defendants with distribution of heroin. Counts 17, 18, 19 and 20 charged certain defendants with using communication devises to further the commission of drug trafficking crimes. Count 24 charged certain defendants with possession of cocaine with intent to distribute.
During their respective plea hearings, the defendants admitted conspiring to distribute cocaine and heroin in Dona Ana County, N.M., between Sept. 2011 and Jan. 2012. Oscar L. Portillo, Sr., and Sandra L. Portillo used the pecan farm as a place to store and sell drugs, and the Portillos and their sons sold drugs to an undercover agent on five separate occasions. The Portillos laundered the proceeds from some of these drug deals by (i) asking the undercover agent pay for the drugs with money orders which they subsequently cashed and deposited into bank accounts in the name of the pecan farm, and (ii) providing the agent with invoices that falsely asserted that the agent purchased pecan trees. Cesar Ramos and Fernando Ramos and their subordinate, Ruben Ortiz-Rivera, were the sources of drug supply for the Portillo family.
Oscar L. Portillo, Sr., was charged in Counts 1 through 16, and 21 through 24 of the indictment. Portillo pleaded guilty to each of these counts in Aug. 2012, and was sentenced to 98 months in prison followed by four years of supervised release on May 8, 2013.
Sandra L. Portillo was charged in Counts 1, 2, 10 through 14, and 18 of the indictment. Portillo pled guilty to each of these counts in Aug. 2012. Earlier today, Portillo was sentenced to 15 months in prison followed by three years of supervised release.
Oscar L. Portillo, Sr. and Sandra L. Portillo also were ordered to forfeit $135,735.64, the value of their ownership interest in the pecan farm which was sold after they were arrested. The court also entered a money judgment in the amount of $17,900.00 against the Portillos and their son Matthew Portillo.
Matthew Portillo was charged in Counts 1, 3, 4, 5, 6, 17, 18, 20 and 24 of the indictment. Portillo pled guilty to each of these counts in Aug. 2012, and was sentenced on May 8, 2013, to five years in prison followed by four years of supervised release.
Oscar Portillo, Jr., was charged in Counts 1, 17, 22 and 23 of the indictment. In May 2012, Portillo pleaded guilty to Count 23 of the indictment, and on Sept. 26, 2012, he was sentenced to 15 months in prison followed by three years of supervised release.
Cesar Ramos was charged in Counts 1, 3, 15, 16, 19, 21, 22 and 23 of the indictment. In Aug. 2012, Cesar Ramos pleaded guilty to each of these counts, and on March 26, 2013, he was sentenced to ten years in prison. Ramos is a Mexican national and he will be deported after he completes his prison sentence.
Fernando Ramos was charged in Count 1 of the indictment. In Aug. 2012, Ramos pleaded guilty to that count, and on Jan. 30, 2013, he was sentenced to 30 months in prison followed by three years of supervised release.
Natasha N. Coronado was charged in Counts 1 and 20 of the indictment. In May 2012, Coronado pled guilty to those two counts, and on Aug. 24, 2012, she was sentenced to time served (212 days) followed by three years of supervised release.
Ruben Ortiz-Rivera was charged in Counts 1 and 19 of the indictment. In May 2012, Ortiz-Rivera pled guilty to those two counts, and on April 17, 2013, he was sentenced to 15 months in prison. Ortiz-Rivera is a Mexican national and he will be deported after he completes his prison sentence.
In May 2012, April Garcia pleaded guilty to a felony information charging her with conspiracy to launder money. On Feb. 12, 2013, Garcia was sentenced to a one-year term of probation.
The cases were prosecuted by Assistant U.S. Attorneys Renee L. Camacho and Sarah M. Davenport, and were investigated by DEA, IRS Criminal Investigation and FBI, with support from the Bureau of Alcohol, Tobacco, Firearms & Explosives, the New Mexico State Police, the Las Cruces Police Department, the El Paso County Sheriff’s Office, and the Las Cruces Metro Narcotics Task Force. These cases were the result of a multi-agency investigation brought under the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.Last of Nine Defendants Charged with Participation in Anthony, N.M., Drug Trafficking Ring SentencedRead the Press Release
ALBUQUERQUE – In Jan. 2012, the owners and operators of a pecan farm in Anthony, N.M., their two sons and four others were arrested on a 24-count indictment alleging federal drug trafficking and money laundering offenses. A ninth defendant, who was separately charged, also was arrested. By Aug. 2012, all nine defendants had pleaded guilty either to drug trafficking or money laundering charges, or both. Today, the case concluded with the sentencing of Sandra L. Portillo.
The successful conclusion of these cases was announced by U.S. Attorney Kenneth J. Gonzales, Joseph M. Arabit, Special Agent in Charge of the El Paso Division of the DEA, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation.
The individuals charged in the indictment included Oscar L. Portillo, Sr., 55, and his wife Sandra L. Portillo, 52, who were part owners and operators of “Pettit Farms and Nursery,” a pecan farm and nursery in Anthony (the pecan farm), and their sons, Matthew Portillo, 27, and Oscar Portillo, Jr., 30. Also charged were Cesar Ramos, 33, Fernando A. Ramos, 41, and Ruben Ortiz-Rivera, 48, of El Paso, Tex., and Natasha N. Coronado, 24, of Vinton, Tex. April Garcia, 37, a codes enforcement officer employed by the Horizon City (Texas) Police Department, was charged with money laundering in a criminal complaint.
Count 1 of the indictment charged all eight defendants with conspiracy to distribute cocaine and heroin. Count 2 charged certain defendants with maintaining a place for storing and distributing drugs. Counts 3, 5, 9 and 21 charged certain defendants with distributing cocaine and aiding and abetting the distribution of cocaine. Count 11 charged certain defendants with conspiracy to launder money and Counts 4, 6, 7, 8, 10, 12, 13, 14, 16, 22 and 23 charged certain defendants with money laundering. Count 15 charged certain defendants with distribution of heroin. Counts 17, 18, 19 and 20 charged certain defendants with using communication devises to further the commission of drug trafficking crimes. Count 24 charged certain defendants with possession of cocaine with intent to distribute.
During their respective plea hearings, the defendants admitted conspiring to distribute cocaine and heroin in Dona Ana County, N.M., between Sept. 2011 and Jan. 2012. Oscar L. Portillo, Sr., and Sandra L. Portillo used the pecan farm as a place to store and sell drugs, and the Portillos and their sons sold drugs to an undercover agent on five separate occasions. The Portillos laundered the proceeds from some of these drug deals by (i) asking the undercover agent pay for the drugs with money orders which they subsequently cashed and deposited into bank accounts in the name of the pecan farm, and (ii) providing the agent with invoices that falsely asserted that the agent purchased pecan trees. Cesar Ramos and Fernando Ramos and their subordinate, Ruben Ortiz-Rivera, were the sources of drug supply for the Portillo family.
Oscar L. Portillo, Sr., was charged in Counts 1 through 16, and 21 through 24 of the indictment. Portillo pleaded guilty to each of these counts in Aug. 2012, and was sentenced to 98 months in prison followed by four years of supervised release on May 8, 2013.
Sandra L. Portillo was charged in Counts 1, 2, 10 through 14, and 18 of the indictment. Portillo pled guilty to each of these counts in Aug. 2012. Earlier today, Portillo was sentenced to 15 months in prison followed by three years of supervised release.
Oscar L. Portillo, Sr. and Sandra L. Portillo also were ordered to forfeit $135,735.64, the value of their ownership interest in the pecan farm which was sold after they were arrested. The court also entered a money judgment in the amount of $17,900.00 against the Portillos and their son Matthew Portillo.
Matthew Portillo was charged in Counts 1, 3, 4, 5, 6, 17, 18, 20 and 24 of the indictment. Portillo pled guilty to each of these counts in Aug. 2012, and was sentenced on May 8, 2013, to five years in prison followed by four years of supervised release.
Oscar Portillo, Jr., was charged in Counts 1, 17, 22 and 23 of the indictment. In May 2012, Portillo pleaded guilty to Count 23 of the indictment, and on Sept. 26, 2012, he was sentenced to 15 months in prison followed by three years of supervised release.
Cesar Ramos was charged in Counts 1, 3, 15, 16, 19, 21, 22 and 23 of the indictment. In Aug. 2012, Cesar Ramos pleaded guilty to each of these counts, and on March 26, 2013, he was sentenced to ten years in prison. Ramos is a Mexican national and he will be deported after he completes his prison sentence.
Fernando Ramos was charged in Count 1 of the indictment. In Aug. 2012, Ramos pleaded guilty to that count, and on Jan. 30, 2013, he was sentenced to 30 months in prison followed by three years of supervised release.
Natasha N. Coronado was charged in Counts 1 and 20 of the indictment. In May 2012, Coronado pled guilty to those two counts, and on Aug. 24, 2012, she was sentenced to time served (212 days) followed by three years of supervised release.
Ruben Ortiz-Rivera was charged in Counts 1 and 19 of the indictment. In May 2012, Ortiz-Rivera pled guilty to those two counts, and on April 17, 2013, he was sentenced to 15 months in prison. Ortiz-Rivera is a Mexican national and he will be deported after he completes his prison sentence.
In May 2012, April Garcia pleaded guilty to a felony information charging her with conspiracy to launder money. On Feb. 12, 2013, Garcia was sentenced to a one-year term of probation.
The cases were prosecuted by Assistant U.S. Attorneys Renee L. Camacho and Sarah M. Davenport, and were investigated by DEA, IRS Criminal Investigation and FBI, with support from the Bureau of Alcohol, Tobacco, Firearms & Explosives, the New Mexico State Police, the Las Cruces Police Department, the El Paso County Sheriff’s Office, and the Las Cruces Metro Narcotics Task Force. These cases were the result of a multi-agency investigation brought under the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.Kirkwood Woman Convicted of Tax Fraud ChargesRead the Press Release
St. Louis, MO - Nancy Cicero was found guilty of multiple fraud charges for filing false tax returns, claiming over $3 million in refunds, for four years beginning in 2005. The three-day trial was held before United States District Judge John A. Ross.
Tax on certain bonds must be paid as interest accrues. Debt issuers such as banks, creditors and lenders provide a yearly form to their bond holders called a 1099-Original Issue Discount (OID). The form shows the OID income, as well as the federal income tax that was withheld on the OID income. To report tax liability on the interest earned, the bond holders submit the OID form to the IRS, along with income tax returns. According to testimony presented at trial, Cicero claimed false income tax refunds by submitting income tax returns to which she attached false and fictitious 1099-OID forms for the taxable years 2005-2008. On her 1040s for those years, Cicerco claimed a refund amount based upon the false federal income tax withholdings that were reported on her false 1099-OIDs. In total, Cicero represented that financial institutions withheld over $3 million in taxes on her 1099-OID forms, thus claiming a refund of over $3 million.
"The defendant attempted to defraud the taxpaying public and the government by falsifying documents and submitting claims for false refunds." Said Tanya T. Brewer, Acting Special Agent in Charge, IRS Criminal Investigation. "IRS, Criminal Investigation will continue to vigorously pursue those who attempt to unjustly enrich themselves at the expense of the rest of the taxpayers."
NANCY CICERO, Kirkwood, MO, was convicted of four felony counts of filing false claims with the IRS. A sentencing date has not yet been set.
Each count of filing false claims carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys Dianna Collins and Reginald Harris prosecuted the case for the U.S. Attorney’s Office.Kingland Man Sentenced to over 17 Years for Distributing Child PornographyRead the Press Release
BRUNSWICK, GA – Thomas John Mumford, 26, of Kingsland, Georgia was sentenced on May 13, 2013 by United States District Court Judge Lisa Godbey Wood to 17½ years in prison, followed by 15 years of supervised release, for distributing child pornography. Mumford will be required to register as a sex offender. At the conclusion of the sentencing, Mumford was returned to the custody of the United States Marshal Service to serve his sentence.
According to the evidence presented at Mumford’s plea and sentencing hearings, in February 2012, Mumford was posting child pornography images on the Internet to be shared with others. When interviewed by a special agent with Federal Bureau of Investigation, Mumford admitted that he had regularly downloaded and viewed child pornography images, and encouraged a young person to live-stream a video of themself taking a shower to him. Mumford’s computer was found to contain over 730 still images and 25 video images of child pornography. At the sentencing hearing, Mumford admitted to having a serious problem and hoped to get treatment while in prison.
United States Attorney Edward J. Tarver stated, “The sharing of images depicting the sexual abuse of innocent children is a serious and heinous crime. The abuse to these young victims continued every time the Defendant viewed these images and made them available to others over the Internet. There is no higher priority within the Department of Justice than the protection of our Nation’s children. There should be no doubt that the United States Attorney’s Office will prosecute those who facilitate and create a market for the violent sexual assault of children.”
This case was brought as part of Project Safe Childhood, a U.S. Department of Justice initiative designed to protect children from online exploitation and abuse. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
The case was the result of an investigation conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Nancy Greenwood prosecuted the case. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Justice Department Settles Sex Discrimination Lawsuit Against Corpus Christi, Texas, Police DepartmentRead the Press Release
The Department of Justice announced today that it has reached a final settlement with the city of Corpus Christi, Texas, to resolve the department’s claim that the city violated Title VII of the Civil Rights Act of 1964 by engaging in a pattern or practice of discrimination against female applicants for entry-level police officer positions.
The Justice Department’s complaint, filed in the U.S. District Court for the Southern District of Texas, alleges that Corpus Christi’s use of a physical abilities test between 2005 and 2011 violated Title VII because it unlawfully screened out female applicants for entry-level positions with the police department without the required evidence showing that the test did not properly evaluate whether a candidate was in fact qualified for a police officer position. Title VII prohibits discrimination in employment on the basis of race, color, sex, national origin or religion, whether the discrimination is intentional or involves the use of employment practices, like physical abilities tests, that have a disparate impact and are not job-related and consistent with business necessity.The Justice Department and the city of Corpus Christi initially entered a settlement and requested the court to approve a consent decree in September 2012. Prior to final entry of the decree by the district court, the Corpus Christi Police Officers’ Association, a union representing most of the city’s police officers, intervened as a party in the lawsuit. This settlement is the culmination of negotiations between all three parties and has resulted in a joint motion by all parties for entry of an amended consent decree. The proposed amended consent decree must be approved by the court; upon its approval, all issues raised by the Justice Department’s complaint against the city of Corpus Christi, and the union’s claims, will be resolved.
“The Department of Justice is committed to eliminating artificial barriers that keep qualified women out of public safety work,” said Jocelyn Samuels, Principal Deputy Assistant Attorney General for the Civil Rights Division. “The department commends Corpus Christi for working to adopt new hiring procedures that comply with Title VII and to provide relief to those who were harmed by the city’s previous hiring practices.”The amended proposed consent decree requires Corpus Christi to replace the physical abilities test challenged by the United States with a new selection procedure that complies with Title VII. Additionally, the amended proposed consent decree requires the city to pay $700,000 as back pay to eligible female applicants who took and failed the challenged physical abilities test between 2005 and 2011. Also under the decree, some women who took and failed the challenged physical abilities test between 2005 and 2011, but who are qualified to perform as police officers, may receive offers of priority employment with retroactive seniority and benefits. Applicants interested in priority employment must pass the new, lawful selection procedure developed by Corpus Christi under the decree, and they must meet other qualifications required of all applicants considered for entry-level police officer positions with the city.
Enforcement of federal employment discrimination laws is a top priority for the Justice Department. Additional information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.Related Materials:
Joint Motion Re 2d Amd Decree
Dkt 56-1 -- 2d Amd Decree
Dkt 56-2 -- Proposed OrderJustice Department Recognizes Nine Individuals for Child Protection Efforts at Missing Children’s Day CeremonyRead the Press Release
The Justice Department today paid tribute to nine individuals for their extraordinary efforts to recover missing children, rescue children from abuse and prosecute sexual predators during its annual commemoration of National Missing Children’s Day.
“The achievements of these honorees, and the stories behind them, remind us that it takes someone very special to do the work that they do,” said Acting Associate Attorney General Tony West. “Days, weeks, months, and as we saw in Cleveland last week, even years can pass between a child’s disappearance and her recovery. It takes tremendous faith, but more importantly, it takes incredible resolve and resourcefulness to pursue those cases to certain resolution.”
“As our Missing Children’s Day honorees demonstrate, community members who remain alert and respond, rescue children every day,” said Acting Assistant Attorney General for the Office of Justice Programs Mary Lou Leary. “Through support for programs such as AMBER Alert and Internet Crimes Against Children task forces, our office remains committed to assisting communities across the country in protecting the lives and safety of children.”
Other speakers included Office of Juvenile Justice and Delinquency Prevention (OJJDP) Administrator Robert L. Listenbee; child protection advocate Heather Bish, whose sister Molly Bish was abducted from her lifeguard job and later found murdered; and John Ryan, president and CEO of the National Center for Missing & Exploited Children. The nearly 300 ceremony attendees included families of missing children, child advocates and others who support programs to recover missing children.
“On this day each year, we pause for a few moments to remember those children who are lost and the families who have been torn apart apart by this unspeakable tragedy,” said OJJDP Administrator Robert L. Listenbee. “We are also here today to celebrate those children and families who have been reunited and to honor the dedicated citizens who work tirelessly to bring these missing children home.”
During the ceremony, Acting Associate Attorney General West presented the following awards:
Attorney General’s Special Commendation: Recognizes the extraordinary efforts of an Internet Crimes Against Children task force or affiliate agency for making significant investigative or program contributions. Recipients: Assistant District Attorney Eric R. Bellas, North Carolina’s 25th Prosecutorial District; Det. Scott Carico, Burke County, N.C. Sheriff’s Office; Special Agent Casey Drake, N.C. State Bureau of Investigation; Selena Moretz, Burke County Child Advocacy Center; and Special Agent John D. Wydra, Jr., Federal Bureau of Investigation, whose efforts led to the arrest and conviction of a N.C. elementary school teacher who had been sexually molesting children and videotaping and photographing pornographic images of them for many years.
Missing Children’s Law Enforcement Award: Recognizes the extraordinary efforts of a law enforcement officer who made a significant investigative or program contribution to the safety of children. Recipient: Det. Anjanette Biswell of the Quincy, Ill. Police Department, whose work as a computer forensic specialist led to the arrest and guilty plea of a man who was producing, downloading, and distributing pornographic images of two young relatives and other children in Quincy.
Missing Children’s Citizen Award: Honors the extraordinary efforts of private citizens for their unselfish acts to safely recover missing or abducted children. Recipients: Brandy V. Hinesly and Casey Quillman, Walmart employees in Aberdeen, Wash., for their quick response that led to the rescue of a missing Arkansas teenager who was about to leave the country with her former boyfriend.
Missing Children’s Child Protection Award: Honors the extraordinary efforts of a law enforcement officer who made a significant investigative or program contribution to protect children from abuse or victimization. Recipient: Assistant U.S. Attorney John Luke Walker for the Western District of Louisiana, who served as the lead prosecutor and a driving force behind Operation Delego, the largest child exploitation case ever prosecuted. His efforts resulted in more than 29 convictions, including a teacher, a police officer, and a high-ranking member of the military.
Esther Jung, a fifth grader from Edwin Rhodes Elementary School in Chino, Calif., received the award as the 14th winner of the Annual National Missing Children’s Day Art Contest.
President Ronald Reagan proclaimed May 25, 1983, the first National Missing Children’s Day to remember Etan Patz, a six-year-old boy who disappeared from a New York City street corner on May 25, 1979. Missing Children’s Day honors his memory and the memories of children still missing.
The Office of Justice Programs (OJP), headed by Acting Assistant Attorney General Mary Lou Leary, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six components: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking. For more information about OJP, please visit: www.ojp.gov.Justice Department Reaches Settlement to Reform the Missoula, Mont. Police Department's Response to Sexual AssaultRead the Press Release
The Department of Justice today reached a comprehensive agreement with the Missoula, Mont., Police Department to ensure that the police department fairly and effectively responds to reports of sexual assault. In May 2012, the Justice Department launched an investigation into allegations that the Missoula Police Department was failing to adequately respond to and investigate reports of sexual assault, due to unlawful gender discrimination in violation of the Violent Crime Control and Law Enforcement Act of 1994, and the anti-discrimination provisions of the Omnibus Crime Control and Safe Streets Act of 1968. The Agreement announced today resolves the Justice Department’s investigation of the Missoula Police Department. The department also released a letter of findings outlining the results of the investigation.The agreement with the Missoula Police Department requires that the police department:
- implement or revise policies, provide training and change practices to improve its response to sexual assault, including combating gender bias;
- work with an independent Monitor, community-based organizations and other stakeholders, to develop and implement the reforms described in the agreement, and to evaluate OPS’ success in effecting meaningful reform;
- demonstrate that its implementation of the agreement has eliminated a pattern or practice of constitutional violations and that it has put in place systems and oversight that will prevent patterns or practices of unconstitutional conduct from recurring; and
- develop procedures for gathering and analyzing data to assess the incidence and outcomes of reports of sexual assault.
The city of Missoula anticipates that it will achieve compliance with this agreement within two years.
“A police department cannot truly protect women in its community without being prepared to respond to reports of sexual assault effectively and without bias,” said Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division. “Equal access to the protection of police and the courts is a matter of basic justice. We commend the City of Missoula and the Missoula Police Department for its cooperation and for taking the steps necessary to maintain women’s safety and promote the community’s confidence in its police response to sexual assault. The leadership of Mayor Engen and Chief Muir has been indispensable to this process.”“As the first responder to most reports of sexual assault in Missoula, the Missoula Police Department plays an absolutely critical role in protecting women victims of sexual assault and ensuring that perpetrators of sexual assault are brought to justice,” said Michael Cotter, U.S. Attorney for the District of Montana. “This agreement will ensure that the department’s officers and detectives are fully prepared to play that role.”
The Justice Department’s review of the Missoula Police Department was one of three simultaneous civil pattern or practice investigations into allegations that law enforcement was systematically failing to protect women victims of sexual assault in Missoula. Alongside its investigation of the Missoula Police Department, the Justice Department conducted parallel investigations of the Missoula County Attorney’s Office and the University of Montana’s Office of Public Safety. Last week, the Justice Department and the Department of Education’s Office of Civil Rights entered into twin agreements with the University of Montana to address the university’s response to reports of sexual assault and sexual harassment on campus; those agreements resolved the Justice Department investigation of the university’s Office of Public Safety. The Justice Department’s investigation of the Missoula County Attorney’s Office is ongoing.
The investigation was conducted jointly by the Special Litigation Section of the Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the District of Montana. The prevention of sex-based discrimination is a top priority of the Justice Department’s Civil Rights Division and U.S. Attorney Offices. The Civil Rights Division has worked to ensure that women are not subject to discriminatory practices related to police services in New Orleans, Puerto Rico and elsewhere. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the District of Montana is available on its website at www.justice.gov/usao/mt.Justice Department Reaches Settlement to Reform the Missoula, Mont. Police Department's Response to Sexual AssaultRead the Press Release
WASHINGTON - The Department of Justice today reached a comprehensive agreement with the Missoula, Mont., Police Department to ensure that the police department fairly and effectively responds to reports of sexual assault. In May 2012, the Justice Department launched an investigation into allegations that the Missoula Police Department was failing to adequately respond to and investigate reports of sexual assault, due to unlawful gender discrimination in violation of the Violent Crime Control and Law Enforcement Act of 1994, and the anti-discrimination provisions of the Omnibus Crime Control and Safe Streets Act of 1968. The Agreement announced today resolves the Justice Department's investigation of the Missoula Police Department. The department also released a letter of findings outlining the results of the investigation.
The agreement with the Missoula Police Department requires that the police department:
- nitor, community-based organizations and other stakeholders, to develop and implement the reforms described in the agreement, and to evaluate OPS' success in effecting meaningful reform;
The city of Missoula anticipates that it will achieve compliance with this agreement within two years.
A police department cannot truly protect women in its community without being prepared to respond to reports of sexual assault effectively and without bias," said Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division. "Equal access to the protection of police and the courts is a matter of basic justice. We commend the City of Missoula and the Missoula Police Department for its cooperation and for taking the steps necessary to maintain women's safety and promote the community's confidence in its police response to sexual assault. The leadership of Mayor Engen and Chief Muir has been indispensable to this process."
As the first responder to most reports of sexual assault in Missoula, the Missoula Police Department plays an absolutely critical role in protecting women victims of sexual assault and ensuring that perpetrators of sexual assault are brought to justice," said Michael Cotter, U.S. Attorney for the District of Montana. "This agreement will ensure that the department's officers and detectives are fully prepared to play that role."
The Justice Department's review of the Missoula Police Department was one of three simultaneous civil pattern or practice investigations into allegations that law enforcement was systematically failing to protect women victims of sexual assault in Missoula. Alongside its investigation of the Missoula Police Department, the Justice Department conducted parallel investigations of the Missoula County Attorney's Office and the University of Montana's Office of Public Safety. Last week, the Justice Department and the Department of Education's Office of Civil Rights entered into twin agreements with the University of Montana to address the university's response to reports of sexual assault and sexual harassment on campus; those agreements resolved the Justice Department investigation of the university's Office of Public Safety. The Justice Department's investigation of the Missoula County Attorney's Office is ongoing.
The investigation was conducted jointly by the Special Litigation Section of the Department of Justice's Civil Rights Division and the U.S. Attorney's Office for the District of Montana. The prevention of sex-based discrimination is a top priority of the Justice Department's Civil Rights Division and U.S. Attorney Offices. The Civil Rights Division has worked to ensure that women are not subject to discriminatory practices related to police services in New Orleans, Puerto Rico and elsewhere. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney's Office for the District of Montana is available on its website at www.justice.gov/usao/mt.
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
John Philip Morrill, Jr. Pleads Guilty to Assault Upon A Federal Officer, Access Device Fraud and Bank FraudRead the Press Release
JOHN PHILIP MORRILL, JR., age 32, a resident of New Orleans, Louisiana, pled guilty in federal court today before U.S. District Judge Ivan L.R. Lemelle to one count of assault upon a federal officer, two counts of access device fraud and one count of bank fraud, announced U.S. Attorney Dana J. Boente.
According to court documents, on or about September 21, 2012, MORRILL assaulted a special agent of the United States Secret Service who, in the performance of his official duty, was trying to apprehend MORRILL. MORRILL also fraudulently obtained goods/services valued at approximately $29,853.16 by using unauthorized credit cards, and by using a PayPal account in association with a fictitious business he claimed to own. MORRILL also defrauded the ASI Federal Credit Union of approximately $2,300, in the form of a personal loan, by using fictitious pay stubs.
MORRILL faces a maximum term of imprisonment of 8 years for the assault upon a federal officer count, and a fine of $250,000. MORRILL also faces a maximum term of 10 years imprisonment, and a fine of $250,000 as to each count of access device fraud. Additionally, MORRILL faces a maximum term of imprisonment of 30 years for the bank fraud count, and a fine of $250,000, a 3 year term of supervised release following any term of imprisonment, and a special assessment fee of $100 as to each count. Sentencing is set for August 7, 2013.
The case was investigated by the United States Secret Service, Louisiana State Police and prosecuted by Assistant U. S. Attorney Julia K. Evans.
(Download Factual Basis )
Jackson Man Indicted on Federal Civil Rights Charge Related to Desecration of Religious ParaphernaliaRead the Press Release
Memphis, TN – A federal grand jury in Memphis has returned a one-count indictment charging Justin Shawn Baker, 25, of Jackson, TN, with violating the civil rights of students and faculty of the Margolin Hebrew Academy.
# # # #
The indictment alleges that on or about January 12, 2013, Baker defaced a Torah and religious prayer books, which the students and faculty of Memphis’ Margolin Hebrew Academy were using for a worship service conducted at the Doubletree Hotel in Jackson.
“Freedom to practice one’s religion without prejudice is one of the bedrock principles upon which our nation was founded,” said Edward L. Stanton III, United States Attorney for the Western District of Tennessee. “Criminal acts such as those alleged in the indictment represent an attack upon the rights that generations of Americans have fought and died to ensure and protect. Our dedicated civil rights unit will continue to protect and defend the rights of our citizens through vigorous enforcement of federal law.”
“This kind of vandalism strikes at the heart of religious freedom in this country, and it will not be tolerated,” said Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division. “Our nation’s civil rights laws protect all denominations, and those who would strike at the right of peaceful citizens to worship will be held accountable.”
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorneys Larry Laurenzi and Jonathan Skrmetti of the U.S. Attorney’s Office for the Western District of Tennessee and Trial Attorney Douglas Kern of the Civil Rights Division’s Criminal Section.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Inmate Charged in Murder for Hire Plot Against Federal JudgeRead the Press Release
FORT WORTH, Texas - Phillip Monroe Ballard, 71, has been charged with murder for hire, United States Attorney Kenneth Magidson of the Southern District of Texas announced today.
The indictment, returned just a short time ago, alleges Ballard solicited the murder for hire of a U.S. District Judge in the Northern District of Texas.
Ballard, currently in federal custody on unrelated charges in the Northern District of Texas, will remain in custody pending further criminal proceedings in this case. He is expected to appear before a U.S. Magistrate Judge in Fort Worth in the near future.
If convicted, Ballard faces up to 20 years in prison and a $250,000 fine.
The case is being investigated by the FBI. Assistant U.S. Attorneys Mark McIntyre and Craig Feazel are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on May 14, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
JAMES HOWARD EASTLICK, a 69-year-old resident of Laurel, appeared on appeared on charges of:
Count I: Conspiracy to Defraud the United States
Penalty: Five years imprisonment, $250,000 fine, and three years of supervised release)
Counts II-VI: Scheme to Defraud the United States and the Chippewa Cree Tribe/ Wire Fraud
Penalty: 20 years imprisonment, $250,000 fine, and three years of supervised release)
Count VII: Theft of Federal Monies
Penalty: Ten years imprisonment, $250,000 fine, and three years of supervised release)
Count VIII: Theft from an Indian Tribal Government Receiving Federal Funding
Penalty: Ten years imprisonment, $250,000 fine, and three years of supervised release)
Count IX: Receipt of Stolen Money in Interstate Commerce
Penalty: Ten years imprisonment, $250,000 fine, and three years of supervised release)
Counts X-XVII: Money Laundering
Penalty: Ten years imprisonment, $250,000 fine, and three years of supervised release)
EASTLICK pled not guilty to the charges and is currently released on special conditions.
Assistant U.S. Attorney Carl E. Rostad is the prosecutor for the United States.
The investigation was a cooperative effort between the U.S. Department of Interior - Office of Inspector General, the Criminal Investigation Division of the Internal Revenue Service, and the Federal Bureau of Investigation.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Husband and Wife Sentence to Prison for Tax FraudRead the Press Release
PENSACOLA, FLORIDA – Rudolf Straat, 49, and his wifeMaria Gudelis, 45, both of Sarnia, Ontario, Canada, were sentenced to two years in federal prison for conspiring to commit tax fraud, mortgage fraud, and money laundering.
Between 2004 and 2012, the husband-and-wife team fraudulently obtained mortgage loans to purchase homes in Florida and Nevada for more than $10 million. In applying for these loans, Straat and Gudelis falsely represented that they were United States citizens when, in fact, Straat is a citizen of the Netherlands, and Gudelis is a citizen of Canada. In addition, they falsely represented on the loan applications that they were unmarried and made false statements concerning their employment.
Straat and Gudelis concealed income they received on the sales of these homes by transferring the properties into trusts and nominee companies, and by taking other steps to ensure that gains from the sales would not be reported under their personal taxpayer identification numbers.
The couple lived in Sandestin from at least October 2005 through July 2007. During this period, Straat failed to file federal income tax returns for tax years 2005 and 2006, failing to report $364,902 in capital gains for 2005, and more than $689,368 in capital gains for 2006 to the IRS. Gudelis also failed to file income tax returns for tax years 2005 and 2006, failing to report $749,883 in capital gains for 2005, and more than $30,826 in capital gains for 2006. Both Straat and Gudelis used a portion of these unreported capital gains to fraudulently purchase additional properties.
Straat pled guilty to conspiracy and tax charges in December 2012. Gudelis pled guilty as charged in early January 2013. As part of their sentence, Gudelis and Straat are required to pay restitution in the amount of $575,814 to the IRS and $5,188,459 to the mortgage lenders they victimized.
United States Attorney Marsh praised the work of IRS-Criminal Investigations, the Federal Bureau of Investigation, and Homeland Security Investigations, whose joint investigation led to the convictions in this case. “Mortgage fraud harms not only lenders, but honest homebuyers and the community at large through increased housing costs,” Marsh said. “We will continue to investigate and prosecute criminals who try to game the system by manipulating the mortgage loan industry and cheating on their taxes.”
James D. Robnett, Special Agent in Charge of IRS Criminal Investigation, stated, “Mortgage fraud impacts the entire country by weakening faith in the financial system. IRS-CI’s goal is to help restore confidence in the financial system, both the public tax system and the private banking system, through our aggressive investigation of violations of federal laws, no matter where in the world these investigations take us. It is with the cooperation of the talented individuals at the U.S. Attorney’s Office that our agency and others can work together towards this common goal.”
Nestor Duarte, Acting Special Agent in Charge of the Jacksonville FBI Office, stated, “The FBI identified mortgage fraud as a threat to not only the banking industry, but the financial sector as a whole. To that end, the FBI, working with its partners in the banking and mortgage industry purposely identified groups and individuals, both domestically and internationally, who willingly participate in these criminal schemes and diligently work with the U.S. Attorney’s Office to bring about successful prosecutions."
The case was prosecuted by Assistant U.S. Attorney Tiffany H. Eggers.Gregg County Woman Guilty of Federal Tax ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas - A 38-year-old Longview, Texas woman has pleaded guilty to federal tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Racyna Antoinette Henry pleaded guilty to an information charging her with aiding and assisting in the preparation of fraudulent tax returns on May 14, 2013 before U.S. Magistrate Judge Judith A. Guthrie.
According to information presented in court, in 2006, Henry began working out of her home as a tax return preparer with a company known as Preyear’s Tax and Check Cashing Services, LLC, which is based in Alabama. Around October 2007, Henry also managed and operated a company known as Henry’s Tax Service LLC out of her home. At some point in 2006, Henry admits that she began assisting in the preparation of false federal income tax returns. The false items contained false dependents, false child tax credits, false child and dependent care expenses, false losses on farming activities, and false earned income tax credits.
The estimated tax loss related to the false federal income tax returns prepared with assistance from Henry from 2006 to 2010 is between $200,000 and $400,000. Henry faces up to 3 years in federal prison at sentencing and restitution for her crime. A sentencing date has not been set.
This case is being investigated by the IRS and is being prosecuted by Assistant U.S. Attorney Alan R. Jackson.Fugitive U.S. Lawyer Expelled from Nicaragua to Face Chargesof International Investment Fraud and Money LaunderingRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that Lawrence S. Hartman, a/k/a Larry Hartman, a/k/a Larry Hart, a/k/a Lawrence Scott Hartman-Grosser (47, Costa Rica; a U.S. lawyer formerly of New York and Florida), who was arrested on an immigration violation by Nicaraguan authorities last week, was today expelled and deported from Nicaragua and turned over to U.S. authorities in Miami. Hartman faces charges of both conspiracy to commit, and substantive acts of, mail fraud, wire fraud and money laundering arising from an international investment fraud and money laundering scheme that resulted in victim-investor losses in excess of $137 million. If convicted, he faces a maximum penalty of 20 years' imprisonment on each of the three conspiracy and substantive mail and wire fraud offenses, and 10 years in prison on each of the substantive money laundering counts (Counts 4 - 17).
Hartman was charged in a Superseding Indictment on March 2009. He is expected to make his initial appearance tomorrow, May 16, 2013, at 1:30 pm in U.S. District Court in Miami.
This apprehension and expulsion was achieved through the joint cooperation of various agencies, including U.S. Immigration and Customs Enforcement's Homeland Security Investigations, the U.S. Secret Service, the U.S. Department of State Bureau of Diplomatic Security, U.S. Embassy Managua, INTERPOL Washington, and the Nicaraguan National Police.
To date, juries have found four of Hartman's co-defendants guilty of the fraud scheme, and another co-defendant pleaded guilty. Specifically, on April 19, 2013, a federal jury found United Kingdom citizens, Paul R. Gunter (64, Odessa, Florida; originally of London), and Simon Andrew Odoni (56, Hertfordshire, UK) guilty of three counts of conspiracy to commit mail fraud, wire fraud, and money laundering, as well as nineteen counts of mail and wire fraud, and fourteen counts of money laundering. Gunter and Odoni each face a maximum penalty of 20 years in federal prison on each of the conspiracy charges and each of the separate mail and wire fraud charges, and up to 10 years on each of the money laundering charges. Both individuals will also be ordered to forfeit real property, bank accounts, an airplane, vessels, and vehicles purchased with proceeds of the fraud scheme. As part of the investigation, federal agents seized nearly $5 million in U.S. currency. Gunter and Odoni are scheduled to be sentenced on July 23, 2013.
In March 2011, co-defendant Richard Sinclair Pope pleaded guilty to conspiracy to commit wire and mail fraud. Pope faces a maximum sentence of 20 years in prison.
In a related trial that took place in May 2012, Houston lawyers Roger Lee Shoss and Nicolette Loisel were convicted of one count of conspiracy to commit wire fraud in connection with their participation in the corporate identity theft aspect of the scheme. The case was investigated by the U.S. Immigration and Customs Enforcement's Homeland Security Investigations, Tampa, Florida, as well as the U.S. Secret Service, Tampa, Florida and Newark, New Jersey Field Offices.
The government received assistance from several other authorities, including the City of London Police, the UK's Serious Fraud Office and Norfolk Constabulary, the Spanish National Police, the U.S. Securities and Exchange Commission, the Ontario Securities Commission, and the British Columbia Securities Commission.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
The case is being prosecuted by Assistant United States Attorneys Rachelle DesVaux Bedke and Kelley Howard-Allen.
Four Sentenced for Possessing 40 Mm Grenades as Part of Los Zetas OrganizationRead the Press Release
McALLEN, Texas – Four Mexican nationals who had illegally entered the U.S. and possessed 40 mm grenades and a launcher have been ordered to federal prison, three of whom received the maximum sentences allowed by law, United States Attorney Kenneth Magidson announced today. Juan Ricardo Martinez-Cardenas, 38, Daniel Blanco-Avila, 23, Martin Martinez-Medina, 18, and Jose Lopez-Cerda, 24, entered guilty pleas on March 5, 2013, for possessing a destructive device.
Today, Chief U.S. District Judge Ricardo H. Hinojosa sentenced Martinez-Cardenas, Blanco-Avila and Lopez-Cerda each to 120-month terms of federal imprisonment. In arriving at its sentence, Judge Hinojosa noted that although their guideline recommendations amounted to life in prison, the court was restricted to the 10-year-terms by statute. As to Martinez-Medina, the court downwardly departed to a 62-month-term of federal imprisonment, taking into consideration threats made against him for not following orders. As illegal aliens, they are all expected to face deportation proceedings following their release from prison.
Evidence showed that Martinez-Cardenas had been stopped in a vehicle with a four 40 mm grenades, an improvised 40 mm grenade launcher, four AK-47 type rifles and corresponding magazines loaded with 2,791 rounds of ammunition. Through subsequent investigation it was determined that Blanco-Avila, Martinez-Medina and Lopez-Cerda had also been involved in the transportation and movement of the munitions.
All four entered the United States illegally and then received the firearms and munitions which were all separately smuggled into the United States. The weapons were brought in by the Zetas, for whom these four defendants worked, in order to avoid the Gulf Cartel. The grenades, grenade launchers and firearms and ammunition were then to be smuggled back into to Mexico for use fighting in Miguel Aleman, Tamaulipas, Mexico.
All of the men have been on detained without bond since the time of their arrest where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives and Border Patrol. The case was prosecuted by Assistant United States Attorney Steven Schammel.Fort Pierre Man Sentenced for Possession of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Pierre, South Dakota man convicted of Possession of a Controlled Substance was sentenced on May 13, 2013 by U.S. Magistrate Judge Mark A. Moreno.
Brent Flood, age 23, was sentenced to 6 months of imprisonment, a $1,000 fine, and a $25 special assessment to the Federal Crime Victims Fund.
Flood was indicted by a federal grand jury on September 19, 2012. He pled guilty to a Superseding Information on March 12, 2013. The charge stems from an incident on April 5, 2012 wherein Flood knowingly and intentionally possessed marijuana, a Schedule I controlled substance.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Flood was immediately turned over to the custody of the U.S. Marshal Service.
Former Wilkes-Barre, PA. Football Coach Sentenced to 25 Years for Producing Child Pornography, Interstate Extortion and Cyber StalkingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that the former football coach of Holy Redeemer High School in Wilkes-Barre was sentenced today to serve 25 years in prison by Senior United States District Court Judge Edwin M. Kosik for producing and attempting to produce child pornography, interstate extortion, and cyber stalking.
According to United States Attorney Peter J. Smith, the defendant Joseph J. Ostrowski, previously pleaded guilty to persuading and enticing, and attempting to persuade and entice, minors to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, including live transmissions via webcam, and using the internet to extort and attempt to extort additional nude photographs, images and live transmissions of sexual conduct from his victims.
Ostrowski was indicted by a federal grand jury in Scranton in May 2012 and taken into custody. He was later indicted for cyber stalking by a federal grand jury in the Western District of Michigan. That case was transferred to the Middle District of Pennsylvania for prosecution. The United States Attorney’s Office for the Middle District of Pennsylvania subsequently filed a superseding Information against Ostrowski.
According to a summary of the Government’s evidence presented at the guilty plea hearing by Assistant United States Attorney Francis P. Sempa, Ostrowski’s production and attempted production of child pornography, interstate extortion activities and cyber stalking occurred during 2006 through May 2012, and involved victims in Pennsylvania, New York, North Carolina, California, Texas, Florida, New Jersey, Michigan, Ohio, Virginia, Minnesota, Indiana, Alabama, and Maryland. Some victims were adults; some were minors; they included students who participated in athletic programs. Ostrowski admitted that he frequently posed as students, school alumni, and other persons and used Facebook, Skype, e-mail, instant messaging, and cellular text messaging to commit the crimes.At the sentencing hearing today, the Government noted that Ostrowski victimized or attempted to victimize more than 60 people, used deception to compromise the Facebook and other online identities of people, and in some instances took advantage of the trust that athletes placed in him. Ostrowski was described by the Government as “the very definition of an online predator.”
Ostrowski’s charges resulted from an investigation by the Federal Bureau of Investigation in Scranton and Michigan and the Michigan State University Police.
Judge Kosik also ordered that Ostrowski be placed on supervised release for life following his prison sentence, pay a $1500 fine, and a $300 special assessment.
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 internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Executive Director of Albuquerque-Based Halfway House Pleads Guilty to Federal Embezzlement and Tax OffensesRead the Press Release
ALBUQUERQUE – Robin Cash, 56, of Albuquerque, N.M., pleaded guilty this morning to a seven-count indictment charging her with four counts of theft concerning programs receiving federal funds, and three counts of willful failure to file a tax return. Cash entered her guilty plea without the benefit of any plea agreement. Cash’s guilty plea was announced by U.S. Attorney Kenneth J. Gonzales and Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation.
At the time of the offenses to which she pleaded guilty, Cash was employed as the Executive Director of the La Pasada Halfway House (La Pasada), a residential center in Albuquerque that provides housing for defendants in the federal criminal justice system, including those awaiting trial and those who are re-entering society after serving a prison sentence. Court filings reflect that the Pretrial Services Office (PTS) of the U.S. District Court for the District of New Mexico contracted with the not-for-profit corporation that operates La Pasada to cover the costs of providing a custodial residential environment for federal defendants. PTS made monthly payments of approximately $60,000 to $80,000 to La Pasada to cover these costs, and La Pasada deposited the funds in its business bank account.
According to the indictment, after Cash became Executive Director of La Pasada in April 2008, she was added as a signatory on the halfway house’s business bank account and received a debit card for the account. Between Sept. 2008 and Jan. 2011, Cash made unauthorized debits to La Pasada’s business bank account and used the proceeds for her own benefit and not for La Pasada’s benefit. The unauthorized debits included checks written for services that were never provided to La Pasada; ATM withdrawals at various Albuquerque locations, including casinos; and debit card charges at casinos in Las Vegas, Nev.
In April 2010, Cash opened a checking account and corresponding bank account in the name of La Pasada without authorization. Thereafter and until Feb. 2011, Cash regularly took funds that La Pasada residents were required to pay to defray their housing costs and deposited the funds into the unauthorized account. She then used the funds to pay for personal expenses that did not benefit La Pasada.
During today’s plea hearing, Cash pleaded guilty to Counts 1 through 4 of the indictment and admitted that, while acting as an agent of an organization that received at least $10,000 in funds on an annual basis under a federal program, she embezzled funds from the organization and converted those funds for her own use. Cash also pleaded guilty to Counts 5 through 7 of the indictment and admitted that she failed to federal file income returns for calendar years 2008, 2009 and 2010.
At sentencing, Cash faces a maximum penalty of ten years in prison on each of the four theft offenses and a maximum penalty of one year in prison on each of the three tax offenses. Her sentencing date has yet to be scheduled.
The case was investigated by IRS Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney John C. Anderson.Former Eagle Pass Department of Public Works Employee Sentenced for Role in City Credit Card Fraud SchemeRead the Press Release
This morning, former City of Eagle Pass Department of Public Works employee Edgar Aguilar was sentenced to 42 months in federal prison and ordered to pay $68,373.87 in restitution for his role in a credit card fraud scheme involving the City of Eagle Pass announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Armando Fernandez.
On November 29, 2012, Aguilar pleaded guilty to one count of conspiracy to commit credit card fraud. By pleading guilty, Aguilar admitted that during 2011, he obtained five City of Eagle Pass-owned “Fuelman” credit cards designated for fuel purchases for Public Works department vehicles and distributed them to his co-defendants. The defendants then used those cards to purchase fuel for their own vehicles and to purchase fuel for others at the City’s expense. In some instances, defendants charged individuals a reduced rate for fuel purchased using the City’s credit card, and then pocketed the cash.
Co-defendants Rene Castillo, Armando Ojeda Nuncio, and Ricardo Hernandez-Espinoza have all pleaded guilty to use of unauthorized access device. Elizabeth Vivian has pleaded guilty to the conspiracy charge. All four are awaiting sentencing.
This joint investigation was conducted by agents with the Federal Bureau of Investigation together with investigators from the Eagle Pass Police Department. Assistant United States Attorney Tad Duree is prosecuting this case on behalf of the Government.
Five People Sentenced for Gun and Drug Crimes in Connection with Aryan Knights CaseRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today the sentencing of Lisa Rochel Samayoa, 45, of Boise; Nina Ann Lucas, 32, of Pocatello, Idaho; Darin Scott Melton, 44, of Twin Falls, Idaho; and Omar Riveroll-Hernandez, 32, of Long Beach, California, to federal prison for conspiring to distribute methamphetamine. Cameron James Ball, 25, also of Boise, was sentenced for unlawfully possessing a firearm. The five defendants pleaded guilty to the charge on January 14, 2013. They were sentenced yesterday and today by the Honorable Larry A. Burns, U.S. District Judge for the Southern District of California, at the federal courthouse in Boise.
Samayoa was sentenced to 135 months in prison followed by five years of supervised release. According to information presented in court, Samayoa was involved in the ongoing distribution of methamphetamine. In May 2012, she sold approximately three ounces of methamphetamine to confidential informants; law enforcement seized an additional four ounces. Samayoa was previously convicted of trafficking methamphetamine in 2003.
Lucas was sentenced to 130 months in prison followed by five years of supervised release. According to information presented in court, Lucas conspired with others to distribute methamphetamine in the Boise area. At the time she committed this crime, Lucas was on probation for a felony drug offense.
Melton was sentenced to 87 months in prison followed by five years of supervised release. According to information presented in court, Melton conspired with others to distribute methamphetamine. He admitted that on March 15, 2012, he sold three ounces of methamphetamine to a confidential informant.
Riveroll-Hernandez was sentenced to 60 months in prison followed by five years of supervised release. According to information presented in court, Riveroll-Hernandez was arrested on May 27, 2012, in Twin Falls, Idaho, when law enforcement officers discovered approximately seven ounces of methamphetamine concealed inside a hidden compartment of his vehicle.
Ball was sentenced yesterday to 33 months in prison followed by three years of supervised release for unlawfully possessing a firearm. According to the plea agreement, Ball admitted that he was in possession of a Hi-Point JCP .40 semiautomatic pistol, which he sold to a confidential informant. Ball was prohibited from possessing the firearm because he was previously convicted in 2005 of the felony crime of possessing a controlled substance.
The cases are part of the Aryan Knights investigation in which 23 people were charged as a result of a long term investigation by the Treasure Valley Metro Violent Crime Task Force. The investigation began when the task force focused on illegal drug distribution by the “Aryan Knights,” a gang active both in prison and on the streets throughout Idaho. Through the investigation, law enforcement agents identified Aryan Knights gang members who were trafficking methamphetamine, as well as associates of the gang who were the source of that methamphetamine.
Of the 23 people charged, 22 have pleaded guilty. The final defendant has signed a plea agreement but not yet entered his guilty plea in court. Fifteen defendants have been sentenced while the others are awaiting sentencing.
The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The joint investigation also included the Organized Crime and Drug Enforcement Task Force (OCDETF), a cooperative law enforcement effort of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
The cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Federal Prison Term Handed Down to San Antonio Woman for Attempting to Purchase Machine Guns and for Bank FraudRead the Press Release
In San Antonio this morning, 38-year-old Yadira Mauricio Ybarra was sentenced to 87 months in federal prison for her role in a conspiracy to purchase machine guns and attempt to smuggle them into Mexico as well as bank fraud announced United States Attorney Robert Pitman, Bureau of Alcohol, Tobacco, Firearms and Explosives - Houston Division Special Agent in Charge Melvin D. King, Jr., and Homeland Security Investigations Special Agent in Charge Vincent Iglio.
United States District Judge Orlando Garcia also ordered that Ybarra pay $133,846.09 restitution for the bank fraud and be placed under supervised release for a period of three years after completing her prison term.
On July 12, 2011, Ybarra pleaded guilty to one count of possession of a machine gun. According to court records, on April 19, 2011, federal authorities arrested Ybarra and 24–year-old Willy Mendoza after they paid $10,000 to an undercover agent and took possession of ten firearms--four fully-automatic machine guns and six semi-automatic assault rifles. Court records also reflect that both Ybarra and Mendoza knew the firearms were going to be taken to Mexico. On October 6, 2011, Mendoza was sentenced to 70 months in federal prison followed by two years of supervised release after pleading guilty to possession of a machine gun.
On February 7, 2012, Ybarra pleaded guilty to one count of conspiracy bank fraud. By pleading guilty, Ybarra admitted that from April 28, 2009 until July 6, 2009, she conspired with others to steal approximately $130,000 by forging signatures of various account holders at the Wells Fargo Bank, Las Palmas branch, in San Antonio.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and ICE Homeland Security Investigations together with the San Antonio Police Department and the United States Secret Service. Assistant United States Attorney Mark Roomberg prosecuted these cases on behalf of the Government.
Federal Jury Convicts Two Syracuse Men for Conspiracy to Import and Distribute Synthetic Drug “molly”Read the Press Release
Syracuse, NY—United States Attorney Richard S. Hartunian today announced that a federal jury has convicted ROSARIO GAMBUZZA (age 48) of East Syracuse, NY and ERNEST SNELL (age 43) of Syracuse, NY, of conspiring to import and distribute a controlled substance analogue, known on the street as “Molly,” in Syracuse, New York between January 2010 and April 2011. GAMBUZZA was also convicted on 19 counts of money laundering in connection with $73,000 dollars he wired to a co-conspirator in Shanghai, China to purchase “Molly,” a designer drug similar to the Schedule I controlled substance, MDMA. Each defendant faces a maximum term of imprisonment of twenty (20) years, up to a $1 million fine, and at least three (3) years of supervised release following any period of incarceration. Sentencing has been scheduled for October 11, 2013 before U.S. District Judge Glenn T. Suddaby.
These prosecutions resulted from an investigation first undertaken in the spring of 2009. Agencies included the Syracuse Resident Office of the Drug Enforcement Administration (DEA), the Internal Revenue Service (IRS)- Criminal Investigation Division (Syracuse Resident Office), the Onondaga County Sheriff’s Office, the Syracuse Police Department, the Department of Homeland Security- HSI, the Onondaga County District Attorney’s Office, the United States Marshals Service, the New York State Police, and the United States Attorney’s Office for the Northern District of New York. The investigation, which included wiretaps on two of the defendants’ telephones, revealed that this drug trafficking organization was responsible for the distribution of over one hundred (100) kilograms of “Molly” during the course of the conspiracy. The “Molly,” manufactured in factories in China, was shipped to distributors in the Syracuse area, as well as other areas in the United States, where it was then distributed to others by members of the conspiracy. The large scale drug trafficking conspiracy, based in Central New York, involved co-conspirators located in Florida, California, Texas, Virginia and elsewhere. Twenty of the twenty-two indicted co-conspirators have been convicted.
United States Attorney Richard S. Hartunian stated “This successful prosecution was brought about through the excellent cooperation of local, state, federal law enforcement agencies working together to combat the influx of ‘designer drugs’ produced by illicit drug manufacturers overseas. I commend theses agencies for their tireless pursuit of those responsible for importing and distributing these drugs on our streets.”
DEA Special Agent in Charge Brian R. Crowell stated, "This investigation of local distributors of the manmade synthetic drug called 'molly,' led our investigators to China on an international conspiracy and 22 federal indictments. DEA and our local, state, federal and international law enforcement partners identified those responsible for peddling this lab-created poison for profit in our communities from the street corner dealer to the source of supply based in China. This investigation and trial unraveled a complex network of 'molly' traffickers. There remains one fugitive attorney Kenneth Feria of Hollywood, California and one fugitive hiding in China named Lei Zhang."1
IRS-Criminal Investigation Special Agent in Charge Toni Weirauch said, “These convictions are significant as they send a strong message to those who are contemplating entering this emerging area of the illegal drug industry and bringing these toxic substances to our communities. Moreover, this investigation and trial highlight to the public – especially to our youth – how dangerous bath salts are. IRS-Criminal Investigation remains committed to working with our law enforcement partners in the fight against all kinds of illegal drugs.”
The case was prosecuted by Assistant U.S. Attorneys Carla Freedman and John G. Duncan. Further questions or inquiries may be directed to Assistant United States Attorney Carla Freedman at (315) 448-0672.
_______________________
1As to these defendants, the indictment contains only allegations and the defendants are presumed innocent until and unless proven guilty in a court of law.
Federal Judge in Houston Hands Down 14-Year Sentence in Firearms ConspiracyRead the Press Release
HOUSTON - Tyrone Reid, 22, a citizen of Dominica residing in Houston, has been ordered to prison following his conviction in a conspiracy involving numerous co-defendants who lied to federal firearms dealers in the purchase of firearms, United States Attorney Kenneth Magidson announced today. Reid was convicted Feb. 19, 2013, after three days of trial and approximately two hours of deliberation.
Today, U.S. District Judge David Hittner, who presided over trial, handed Reid a 168 month sentence - 60 months for the conspiracy conviction as well as 60 and 48 months on each of the two convictions of making false statements to a federal firearms licensee. All counts are to run consecutive to each other for a total sentence of 14 years in federal prison. At the hearing today, Judge Hittner found Reid to be connected to known drug traffickers in the Virgin Islands and the most culpable in this criminal conspiracy. In handing down the sentence, Judge Hittner also ordered that Reid, not a U.S. citizen, to be immediately deported following completion of his prison sentence.
“The sentencing today sends a clear message that Illegal firearms trafficking will not be tolerated,” said Magidson. “We will continue to make every effort to prevent the illicit flow of firearms in our country.”
The case began when officers of Homeland Security Investigations (HSI) and the Virgin Islands Police Department (VIPD) executed a search warrant at the home of a known drug dealer in the Virgin Islands which resulted in the discovery of drugs and several firearms. These firearms were found to have been purchased by individuals in Houston at Reid’s direction.
The evidence presented at trial demonstrated Reid would induce others to claim they were the actual buyer of the firearms, even though he supplied the money and immediately took possession from the buyer. Testimony revealed that none of the purported buyers kept any of the firearms they purchased, many which were later found in crime scenes, both in the continental United States and in the Virgin Islands.Western Union receipts sent from the Virgin Islands to the United States reflected more than $60,000 in payments received by Reid or at his direction. Further, three of the firearms were recovered by agents in a search at the home of one of Reid’s associates, who was also linked to some of the money sent to the Virgin Islands to Reid here in Houston. Evidence demonstrated that a total of seven firearms were seized in the Virgin Islands, six of which were seized from crime scenes, including a homicide. Two other firearms associated with this conspiracy were found in New Jersey crime scenes, including an aggravated armed robbery.
Testimony revealed that more than 30 firearms were identified with this lying and buying conspiracy.
Reid’s grandmother, who had traveled to Houston to testify, told the jury that Reid had sent guns to her in the Virgin Islands. Reid took the stand on his own behalf and then called his grandmother a liar.
Reid will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Reid’s co-conspirators in Houston and another in the Virgin Islands were all also convicted and sentenced for their roles in the scheme.
“The successful resolution to this case would not have occurred without the outstanding inter-agency cooperation of HSI, VIPD, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Customs and Border Protection, Houston Police Department - Major Offenders, Harris County Sheriff’s Office and the U.S. Postal Service,” Magidson said. “By working together, we could ensure the investigation progressed and five people were ultimately held accountable for their criminal actions.”Assistant United States Attorneys Joe Magliolo and Megan Paulson prosecuted the case.
Erie Felon Charged with Illegally Possessing WeaponRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Gerod Maurice Jarrett, 32, as the sole defendant.
According to the indictment presented to the court, Jarrett possessed a firearm while being a convicted felon.
According to Mr. Hickton, this case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
The law provides for a maximum total sentence of life 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 Christine A. Sanner is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Erie Police Department 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.
Eagle Butte Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota man convicted of Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury was sentenced on May 13, 2013 by U.S. District Judge Roberto A. Lange.
Leon Farlee, age 40, was sentenced to 60 months in custody, 2 years of supervised release, $127,716.74 in restitution, and a $200 special assessment to the Federal Crime Victims Fund.
Farlee was indicted by a federal grand jury in April 2012. He was convicted following a jury trial in Pierre on February 22, 2013. The conviction arose out of an unlawful assault that occurred in Eagle Butte in March 2012, when the defendant assaulted a 62-year-old man from Dupree, by hitting and kicking him with cowboy boots, which caused serious bodily injury to the victim.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson. Farlee was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.
Drug Trafficking Conspirator Sentenced to Life in PrisonRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a former Bethlehem man who participated in a Carbon County-based drug trafficking conspiracy, was sentenced today to serve life in prison by Senior United States District Court Judge James M. Munley.
According to United States Attorney Peter J. Smith, the defendant Krishna Mote, age 43, was convicted after a three-day jury trial in December 2012 of conspiracy to distribute more than 280 grams of crack cocaine and more than 500 grams of cocaine, and distribution of crack cocaine as an aider and abettor.
Mote was indicted by a federal grand jury in June 2011, as a result of an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police in Carbon County. The drug conspiracy operated in the Lehighton and Weissport area from late 2005 through April 2007. Evidence presented at trial proved that Mote and his co-conspirators used the residences of several local drug users to distribute crack cocaine and cocaine to numerous customers.
The court noted that Mote’s two prior drug trafficking convictions triggered a federal statute that mandated the imposition of a life sentence. Judge Munley also ordered that Mote pay a $200 special assessment.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Dorchester Man Sentenced for Mortgage Fraud and Identity TheftRead the Press Release
BOSTON – A Dorchester man was sentenced yesterday for operating a mortgage fraud scheme to sell his own home and to buy other residential properties.
Peterson Cherimond, 36, was sentenced by U.S. District Judge George A. O’Toole to 87 months in prison, followed by one year of supervised release and ordered to pay $2.2 million in restitution to six mortgage lender victims. In July 2012, Cherimond pleaded guilty to nine counts of wire fraud and three counts of money laundering. In October 2012, he pleaded guilty to four additional counts of wire fraud, seven counts of identity fraud and two counts of aggravated identity theft.
Cherimond recruited co-defendants Judy Bonas and Allison Gates to use stolen identities for the purpose of obtaining fraudulent mortgage loans aggregating more than $3.8 million for seven properties in Brockton, Mattapan, Halifax and Worcester. Cherimond provided Bonas and Gates with bogus identification documents and paid them $1,500 to $3,000 per property to pose as the purported buyers at mortgage loan closings in order to obtain the fraudulent loan proceeds for Cherimond and others.Bonas pleaded guilty and was sentenced in February 2013 to six months in prison, followed by two years of supervised release. Gates pleaded guilty and was sentenced in March 2013 to six months in prison, followed by two years of supervised release.
United States Attorney Carmen M. Ortiz, Kevin Niland, Inspector in Charge for the U.S. Postal Inspection Service, and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today.
The case was prosecuted by Assistant U.S. Attorneys Victor A. Wild of Ortiz’s Economic Crimes Unit and Brian Perez-Daple of Ortiz’s Civil Division.
District Man Sentenced to More Than 13 Years in Prison for Armed Robbery and Other Charges in 2012 Attack-Defendant Robbed Victim in Northwest Washington After Asking Her for Directions-Read the Press Release
WASHINGTON – Anthony Butler, 51, of Washington, D.C., was sentenced today to 13 years and 10 months in prison on charges stemming from the armed robbery of a woman last fall in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Butler was found guilty in March 2013 by a jury in the Superior Court of the District of Columbia on charges of armed robbery, carrying a dangerous weapon, felony threats, and possession of an open container of alcohol. He was sentenced by the Honorable A. Franklin Burgess, Jr. Butler, who has previous convictions for robbery, carjacking and other crimes, is to be placed on five years of supervised release following his prison term. In announcing the sentence, Judge Burgess indicated that he wanted to keep Butler off the streets and keep the citizens of the District of Columbia safe. Butler also faces parole revocation.
According to the government’s evidence, the attack took place about 8 p.m. on Oct. 27, 2012, near the National Zoo. The victim was walking alone near Adams Mills Road and Walbridge Place NW, headed to a friend’s house for a dinner party, when Butler saw her. He got out of a large red pick-up truck that was blocking her path and pretended to ask for directions.
Butler quickly grabbed the woman’s arm, thrust a knife up to her stomach, and demanded her phone and purse. After he got those items, he demanded her necklace. When she couldn’t get her necklace off fast enough, Butler yelled at her to take it off or he would kill her. After robbing her, he told her to run in the opposite direction and again threatened her if she didn’t comply.
Butler then took off in the pick-up truck. The victim was left on the side of the street without a phone, any money, and the keys to her house. She ran down the street and flagged down a motorist who allowed her in his car, and together they called 911. About 10 minutes later, officers with the Metropolitan Police Department’s Robbery Intervention Program spotted a truck matching the description of the one Butler was using near a gas station at Georgia and Missouri Avenues NW. Officers found the victim’s belongings spread around the truck; Butler had a knife. The victim identified Butler and the knife. He was arrested. At the Fourth District Police Station, the woman’s identification was found in his pocket. At trial, Butler argued that he had merely found the purse on the side of the road.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case from the MPD. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Debra McPherson, Litigation Technology Specialist Paul Howell, and Victim/Witness Advocate Jennifer Clark. Finally, he praised the work of Assistant U.S. Attorney Natalia Medina, who investigated and prosecuted the case.
13-170