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Monday 29 April 2013
St. Louis Man sentenced to 10 and a half years in Federal Prison for distributing child pornographyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a St. Louis man was sentenced in federal court in Anchorage for distributing child pornography.
Leland Paster, 29, from St. Louis, Missouri, was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline to 10 and a half years in prison to be followed by 15 years of supervised release.
According to Assistant U.S. Attorney Kyle G. French, who prosecuted the case, Paster used an Internet email account to amass and trade a collection of over 1,000 images and 50 videos depicting children being sexually abused. The depictions included toddlers and bondage/torture. Paster’s collection also reflects the international scope of child sex abuse that feeds the demand created by Paster and others who collect and trade child pornography. Paster’s collection included 600 images and he possessed 23 videos involving many known child pornography series depicting the same victims. These materials contained at least 16 identified child victims who were abused in Switzerland, Germany, France, Belgium, the United Kingdom, the Netherlands, Italy, the Republic of Moldova, the Ukraine, Canada, Denmark, Sweden, Austria, Brazil, and the United States.
Judge Beistline emphasized during sentencing that child pornography is “not a victimless crime” and characterized Paster’s conduct as helping to satisfy a market for the depictions.
“The possession, receipt, transportation, and distribution of child pornography perpetuates the harm to victims depicted in the images and fuels a market, thereby leading to further production of images” stated Ms. Loeffler. Ms. Loeffler further stated that “Paster’s participation in email child pornography groups, for example, involves membership and informal communications which inevitably and disturbingly encourages child sex sexual abuse by other individuals.”
AUSA French further stated that every internet user can help combat the problem by choosing to report child pornography related links, emails, media, and other materials. This effort may possibly rescue a child.If anyone encounters child pornography online, you can report its location to your Internet service provider, local or state law enforcement, the FBI or Department of Homeland Security office. It may also be reported online via the National Center for Missing and Exploited Children’s (NCMEC) website at cybertipline.com. NCMEC will forward your report to the appropriate investigative agency for follow-up.
Ms. Loeffler commends the Department of Homeland Security Investigations for the investigation of this case.
Southern California Man Sentenced to 10 Years in Federal Prison in Schemes That Sold Unregistered Securities in Internet, Energy FirmsRead the Press Release
LOS ANGELES – A previously convicted felon was sentenced late this afternoon to 120 months in federal prison for selling unregistered stock in Internet companies and a fake energy company to victims across the country who lost at least $10 million.
De Elroy Beeler Jr., 56, was sentenced by United States District Judge Dean D. Pregerson. Beeler, who has been in federal custody since 2007 when authorities arrested him to stop an ongoing scheme, previously lived with his family in Carpinteria in Santa Barbara County and had a residence in the Tujunga district of Los Angeles.
Beeler will be back in court in about one month, at which time Judge Pregerson is expected to rule on how much money Beeler should pay in restitution to the hundreds of victims of the scheme.
Beeler pleaded guilty to one count of conspiracy and two counts of mail fraud in late 2008.
In the scheme at the center of the federal prosecution, Beeler worked with former IRS Revenue Agent George Tannous to solicit victims across the country to purchase unregistered stock in the Tujunga-based Bidbay.com, Inc. (a company that was later known as Auctiondiner.com, Inc.) and related companies AskGT.com and Rose Laboratories.
Victim-investors were enticed to put money into the companies with various false claims, including that the companies would conduct initial public offerings, and that Bidbay.com and/or the shell companies would soon be acquired by Ebay, Inc. for $20 per share. Ebay never had any intention of acquiring Bidbay.com and had even sued Bidbay.com for trademark infringement over the use of “bay” in its name. Beeler personally received $4.8 million of investor money as commissions that were not disclosed to investors.
Tannous pleaded guilty to one count of conspiracy and one count of subscribing to a false tax return in 2008. Judge Pregerson sentenced Tannous in March 2012 to 33 months in prison.
A former United States Congressman involved in the scheme was sentenced in December to one year and one day in federal prison in a tax fraud case related to his failure to disclose to the IRS nearly $500,000 of investor funds he received from the Bidbay scheme. Wester Shadric Cooley, 80, a native of Los Angeles who now resides in Bend, Oregon, admitted in court that he received approximately $1.1 million during the scheme and that he failed to report approximately $494,000 on his 2002 tax return.
After Beeler was charged in the Bidbay case in 2007, he was charged in a second case involving the sale of securities in 2006 and 2007 in a fake energy company called First Global One. Beeler falsely told investors that First Global One would have an initial public offering and that it had business relationships with Exxon Mobile Corporation. Beeler received the 10-year sentence today after pleading guilty in both the Bidbay and First Global One schemes.
Beeler was previously convicted in federal court in relation to another fraud scheme that sent him to prison for 36 months, a term he completed in 2005 just before launching the First Global One scheme.
The investigation into Bidbay.com was conducted by the Federal Bureau of Investigation and IRS-Criminal Investigation.
Release No. 13-060
South Jersey Man Admits Stealing Father’s Benefit Checks for 22 Years After His DeathRead the Press Release
CAMDEN, N.J. – A south Jersey man who hid his father’s death from authorities to keep his Social Security payments admitted today to stealing more than $200,000 in retirement savings benefits paid out to the deceased, U.S. Attorney Paul J. Fishman announced.
Michael Shelton, 65, of Pennsauken, N.J., entered a guilty plea to an Information charging him with one count of theft of government funds, before Chief U.S. District Judge Jerome B. Simandle in Camden federal court.
According to documents filed in this case and statements made in court:
Shelton admitted that when his father died in March of 1990, he intentionally did not notify the Social Security Administration (SSA), as he was obligated to do, so that he could continue to receive his father’s SSA retirement checks. The SSA discovered the death in June of 2012, at which time the deceased was receiving $977 in monthly retirement benefits.
After his father had died, Shelton set up a direct deposit for the checks into a PNC Bank account in his father’s name. Shelton acknowledged he accessed that account at various times and used the money to pay for personal expenses.
Shelton admitted that, from March 1990 to July 2012, he collected approximately $204,606 to which he was not entitled.
The charge to which Shelton pleaded guilty carries a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Sentencing is scheduled for Aug. 1, 2013.
U.S. Attorney Fishman credited special agents of the Social Security Administration Office of the Inspector General, under the direction of Special Agent in Charge Edward J. Ryan, with the investigation.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Assistant Federal Public Defender Thomas Young Esq., CamdenShelton Information
Shelby County Man Guilty of Buying Cold Pills to Make MethRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 40-year-old Joaquin, Texas man has pleaded guilty to federal drug charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Dean Allen Tucker pleaded guilty to possession of pseudoephedrine with intent to manufacture methamphetamine today before U.S. Magistrate Judge John D. Love.
According to information presented in court, on Nov. 13, 2008, Tucker purchased cold pills containing pseudoephedrine from the Ken turner Pharmacy in Carthage, Texas, with intentions of manufacturing methamphetamine. Tucker also admitted to purchasing cold pills on 25 additional occasions from Nov. 18, 2008 to Apr. 15, 2009, amounting to approximately 58.44 grams of pseudoephedrine. A grand jury returned a federal indictment on Nov. 7, 2012, charging Tucker and Christine Stephens Carroll with drug trafficking crimes. Carroll was sentenced to 71 months in federal prison on Aug. 20, 2012.
Tucker faces up to 20 years in federal prison. A sentencing date has not been set.
This case is being investigated by the Texas Department of Public Safety and the Panola County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Jim Noble.
Sheep Springs, N.M., Man Sentenced to Four Years in Federal Prison for Assault ConvictionRead the Press Release
ALBUQUERQUE – This morning, Jason Allen Hunter, 46, an enrolled member of the Navajo Nation who resides in Sheep Springs, N.M., was sentenced to four years in federal prison followed by three years of supervised release for his conviction on assault charges.
On Nov. 14, 2012, Hunter pleaded guilty to two counts of assault with a dangerous weapon. In entering his guilty plea, Hunter admitted that, on May 9, 2009, he fired a shotgun at two people in a truck as it drove past him. Three small children were in the truck when Hunter fired the shots. Hunter further admitted that, at the time he fired shots at the truck, he intended to cause those individuals bodily injury. Hunter committed these unlawful acts near his home, which is located just outside Sheep Springs on the Navajo Indian Reservation. Hunter has been in federal custody since entering his guilty plea.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety with assistance from the Farmington office of the FBI, and is being prosecuted by Assistant U.S. Attorneys Mark T. Baker and Kyle T. Nayback.
Senior Vice President of Operations at White Rose Food Pleads Guilty to Tax EvasionRead the Press Release
TRENTON, N.J. – The senior vice president of operations of an independent wholesale food distributor admitted today to evading taxes on income he received from third parties, U.S. Attorney Paul J. Fishman announced.
John Annetta, 61, of Marlboro, N.J., pleaded guilty before U.S. District Judge Peter G. Sheridan to an Information charging him with one count of tax evasion.
According to documents filed in this case and statements made in court:
Between approximately 2006 and 2011, Annetta worked at White Rose Food, an independent wholesale food distributor in the New York City and New Jersey metropolitan areas. During that time he was given $1,648,085 from two people met in the course of his employment. He failed to report this money as taxable income for the calendar years 2006, 2007, 2008, 2009, 2010, and 2011 in the amounts of $106,500, $234,000, $317,406, $398,542, $292,700 and $298,936, respectively. He admitted that for 2006 through 2011 he would have owed the government $536,530 if he had reported the additional cash on his income tax returns.
The charge to which Annetta pleaded guilty to is punishable by a maximum potential penalty of five years in prison and a fine of $250,000. Sentencing is scheduled for Sept. 4, 2013.
U.S. Attorney Fishman credited inspectors of the U.S. Postal Inspection Service, under the direction of Acting Postal Inspector in Charge Marie Kelokates, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
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Defense counsel: Matt D. Mandel Esq. of Millburn, N.J.
Annetta Information
Retired Customs and Border Protection Supervisor Sentenced to 10 Years in Child Pornography CaseRead the Press Release
A retired United States Customs and Border Protection supervisor was sentenced today by U.S. District Judge Marilyn L. Huff to 10 years in prison, followed by five years of supervised release, for downloading child pornography.
Former Supervisory Special Agent Lawson Hardrick, Jr., who was the assistant director for the Calexico ports of entry, was found guilty by a federal jury in January of two counts of receipt of images of minors engaged in sexually explicit conduct, each a felony. The verdicts followed a two-day trial before Judge Huff.
According to the evidence presented at trial, agents with Immigration and Customs Enforcement’s Homeland Security Investigations conducted an investigation of persons using peer to peer file-sharing programs to make child pornography available to others. According to the forensic evidence introduced at trial, the defendant received videos of children as young as four and nine years old through a file-sharing program in 2008 through 2010. The indictment was handed up by a federal grand jury sitting in San Diego in July 2012.
Upon release, Hardrick will be required to register as a sex offender.
DEFENDANT Case Number: 12cr3061-H Lawson Hardrick SUMMARY OF CHARGESCounts: 2
Receipt of Images of Minors Engaged in Sexually Explicit Conduct- Title 18, United States Code, 2252(a) (2)
INVESTIGATING AGENCY
Maximum Penalties: 20 years incarceration with a five year mandatory minimum sentence, $250,000 fine, a
minimum of 5 years and up to a lifetime of supervised release and registration as a sex offender.Immigration and Customs Enforcement’s Homeland Security Investigations
Presidential Tax Service Owner Convicted of Falsifying ReturnsRead the Press Release
HOUSTON – Sharon Edwards Kitine, the former owner of a now defunct Presidential Tax Service in Houston, has entered a plea of guilty for falsifying client returns, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI). The tax service establishment she owned closed in March 2012 following her arrest.
The factual basis in support of the plea states that Kitine claimed false deductions for Houston-area clients that fraudulently increased tax refunds by approximately $200,000 for tax years 2006 through 2011.
“Tax return preparers have a duty to their clients to prepare accurate tax returns that comply with the tax laws,” stated Cruz. “IRS-CI endeavors to protect revenue by identifying, investigating and recommending prosecution of abusive return preparers. Always remember, it is your responsibility to know what is on your income tax return because ultimately, you are responsible for all the information filed with the IRS.”
On or about March 29, 2008, Kitine knowingly prepared and caused to be filed with the IRS a false 2007 U.S. Individual Income Tax Return – Form 1040 for taxpayers and fee-paying clients in need of tax return preparation services. Without consent of the taxpayers, Kitine included certain materially false deductions with the intention of generating an excessive federal income tax refund and causing a direct pecuniary harm of several thousand dollars to the IRS.
Specifically, Kitine knowingly and willfully included materially false deductions for a variety of Schedule C deductions as well as Schedule A deductions for home mortgage interest and real estate taxes even though the taxpayers rented their home. This tax return alone caused a loss to the U.S. Treasury in the approximate amount of $11,261.
Kitine also knowingly and willfully prepared and caused to be filed with the IRS several more false federal income tax returns for other clients for tax years 2006 through 2011 that generated excessive refunds based upon false and fraudulently inflated deductions and credits that caused aggregate losses to the IRS of approximately $205,682.
The plea agreement requires Kitine make full restitution to the IRS for the fraudulent refunds.
U.S. District Judge Vanessa Gilmore, who accepted the guilty plea, has set sentencing for July 22, 2013, at which time Kitine faces up to three years in prison and $250,000 fine. She has been permitted to remain on bond pending that hearing.
The investigation leading to these charges was conducted by IRS-CI. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.
Powhatan Store Owner Pleads Guilty to Conspiring to Structure $10,000,000 Obtained from Illicit Cigarette SalesRead the Press Release
RICHMOND, Va. –Jayant Khare, 50, of Powhatan, Va., pleaded guilty today to conspiring to structure more than $10,000,000 in cash transactions for the purpose of preventing banking institutions from reporting those transactions to the Internal Revenue Service (IRS).
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C.; and Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office, made the announcement after the plea was accepted by United States District Judge Henry E. Hudson.
Khare was charged by criminal information filed on March 28, 2013, and faces a maximum penalty of five years in prison when he is sentenced on July 19, 2013.
According to a statement of facts filed with the plea agreement, Khare, along with co-conspirator Loveleen Khare, owned and operated two cigarette retail stores known as Cigarettes America Plus and Cigarettes America at Westchester. Khare admitted that from October 2011 to December 2012, he and Loveleen Khare conspired to structure over $10,000,000 in U.S. currency by splitting up cash deposits into accounts maintained at six banks, all in an effort to prevent the banks from filing Currency Transaction Reports with the IRS, which must be filed on cash deposits of $10,000 or greater. The structured cash was obtained by selling large quantities of cigarettes to out-of-state individuals who were known to be transporting the cigarettes to locations outside of the Commonwealth of Virginia for resale as contraband cigarettes. The sales took place at Khare’s personal residence and from the back door of the retail stores.
Loveleen Khare pled guilty to the conspiracy charge on April 17, 2013 and will also be sentenced on July 19, 2013.
This case was investigated by HSI, the Internal Revenue Service - Criminal Investigation, and the Tobacco Enforcement Unit of the Office of the Attorney General of Virginia. Assistant United States Attorneys Dominick S. Gerace and Laura Colombell Marshall are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Pocatello Man Sentenced in Meth Trafficking CaseRead the Press Release
POCATELLO – Douglas I. McAdam, 47, of Pocatello, was sentenced today to 33 months in prison for possession with intent to distribute in excess of five grams of methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered McAdam to serve three years of supervised release after his prison term. He pleaded guilty to the charge on February 11, 2013.
According to the plea agreement, on November 1, 2011, a law enforcement officer observed McAdam receiving methamphetamine from Raymond Camacho, a co-defendant. McAdam was subsequently stopped by officers who recovered in excess of five grams of actual methamphetamine. McAdam admitted he possessed the methamphetamine with the intention of distributing it to others.
Three co-defendants were sentenced earlier in April, including Juan Aguilar, a Mexican national, to 120 months in prison for possession with intent to distribute in excess of 50 grams of methamphetamine; Juan Mendoza, of Menan, Idaho, to 102 months for possession with intent to distribute in excess of 50 grams of methamphetamine; and Jose Rios-Jimenez, a Mexican national, to 16 months – time served – for possession of a firearm by a prohibited person and illegal entry of a removed alien.
Leones, pleaded guilty to related methamphetamine trafficking charges and are awaiting sentencing. Camacho, 57, a Mexican national, pleaded guilty on January 24, 2013, to possession with intent to distribute in excess of 50 grams of methamphetamine; sentencing is set for May 29. Leones, 42, of Pocatello, pleaded guilty to possession with intent to distribute methamphetamine; she is set for sentencing on May 28. On April 26, Judge Winmill signed an order committing co-defendant Eldon K. McConnell, 48, of Pocatello, to a mental health facility.
The case was investigated by Idaho State Police, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and Chubbuck Police Department.
Pittsburgh Man Admits Trafficking Passwords and Damaging A ComputerRead the Press Release
PITTSBURGH - A resident of Pittsburgh pleaded guilty in federal court to charges of recklessly damaging a computer and password trafficking, United States Attorney David J. Hickton announced today.
Matthew James West, 21, pleaded guilty to two counts of the five-count superseding indictment before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on or about Nov. 28, 2011, in the Western District of Pennsylvania, the defendant knowingly caused the transmission of a program, information, code, and command, and as a result of such conduct, recklessly caused damage without authorization to a protected computer.
Judge Cercone scheduled sentencing for Sept. 2, 2013 at 11:30 a.m. The law provides for a total sentence of two years in prison, a fine of $200,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Pending sentencing, the court continued West on bond.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Matthew West.
Owner of Multiple New York Construction Companies Indicted for Tax FraudRead the Press Release
Eric Anderson, of Dix Hills, N.Y., was arrested today following his indictment on April 25, 2013, on numerous tax crimes, the Justice Department and Internal Revenue Service (IRS) announced.
According to the indictment, Anderson owned three construction companies in Dix Hills: Anderson Framing, Anderson Enterprise and Anderson Trim Specialty. As alleged, Anderson corruptly endeavored to obstruct the IRS between 2006 and 2008 by using a check cashing service to cash over $10.5 million of gross receipts checks paid to his construction companies. He concealed his check cashing activities from his tax return preparer so that the income was not included on the companies’ tax returns. Anderson paid his employees in cash while failing to collect and pay over to the IRS employment taxes. He also diverted cash receipts earned by his companies for his own personal use. Finally, after learning of the criminal investigation, Anderson shredded business records and lied to IRS investigators about his use of the check cashing service.
The indictment also alleges that Anderson filed a false 2006 corporate income tax return for Anderson Trim and failed to file multiple years of employment tax returns, corporate income tax returns, and individual income tax returns. Anderson faces a potential maximum sentence of 94 years in prison and a potential fine of up to $5,300,000.
A trial date has not been scheduled. An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case was investigated by IRS - Criminal Investigation and is being prosecuted by Trial Attorneys Mark Kotila and Jeffrey Bender of the Justice Department’s Tax Division.
Olson Appointed to Attorney General's Advisory Committee (AGAC)Read the Press Release
BOISE – Attorney General Eric Holder has appointed Idaho’s U.S. Attorney, Wendy J. Olson, to the Attorney General’s Advisory Committee (AGAC), the highest ranking committee within the Department of Justice. The Department announced the appointment of Olson and five other U.S. Attorneys to serve new two-year terms earlier today.
The AGAC, created in 1973, is comprised of twenty U.S. Attorneys from ninety-four districts. The AGAC reports to the Attorney General through the Deputy Attorney General. The committee represents the voice of the U.S. Attorneys and provides advice and counsel to the Attorney General on policy, management and operational issues impacting the Offices of the U.S. Attorneys.
Olson was presidentially appointed U.S. Attorney for the District of Idaho on June 25, 2010. Prior to her appointment she served as an Assistant U.S. Attorney for the District of Idaho from 1997-2010, including as Senior Litigation Counsel (2006-2010). Olson worked for the Criminal Section of the Civil Rights Division of the Department of Justice, where she was a trial attorney from 1992 until 1996, and Deputy Director of Operations and Assistant to the Director on the National Church Arson Task Force from 1996 until 1997. Olson was also an Adjunct Professor of Legal Writing at the George Washington University School of Law from 1994 until 1997. Olson serves as a member of the AGAC’s Border and Immigration Law Enforcement Subcommittee, Civil Rights Subcommittee, Native American Issues Subcommittee, and Local Government Coordination Working Group.
“It’s a pleasure to welcome the newest members of the Attorney General’s Advisory Committee, a group of U.S. Attorneys with whom I regularly consult on some of the most critical law enforcement and public safety issues facing our country,” said Attorney General Holder. “I’m grateful for their service and leadership on the AGAC. I applaud the excellent work that each of them is leading in their home districts. And I look forward to working closely with them as we work together to confront the present challenges and seize new opportunities to protect and ensure justice for the American people.”
North Dakota Man Pleads Guilty to Distributing Child PornographyRead the Press Release
MINNEAPOLIS—Earlier today in federal court in Duluth, a 41-year old Wahpeton, North Dakota, man pleaded guilty to distributing child pornography. William Robert Upshaw pleaded guilty to one count of distribution of child pornography. Upshaw, who was indicted on December 3, 2012, entered his plea before United States District Court Chief Judge Michael J. Davis.
In his plea agreement, Upshaw admitted that on August 19, 2011, he distributed one or more items that contained visual depictions of minors engaged in sexually explicit conduct. In addition, Upshaw admitted that his possessed approximately 75,775 images and 1,880 videos of child pornography, some of which portrayed sadistic or masochistic conduct or other depictions of violence.
For his crime, Upshaw faces a potential maximum penalty of 40 years in federal prison, with a mandatory minimum penalty of 15 years. Judge Davis will determine his sentence at a future hearing, yet to be scheduled.This case is the result of an investigation by the Minnesota Child Exploitation Task Force, sponsored by the Federal Bureau of Investigation, and the Moorhead Police Department. It is being prosecuted by Assistant U.S. Attorney Laura M. Provinzino.
Distribution of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.
This case was brought as part of Project Safe Childhood (“PSC”), 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 U.S. Attorney offices and the Justice Department’s Criminal Division, Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”New Orleans Man, John Philip Morrill, Charged with Assault Upon A Federal Officer, Access Device and Bank FraudRead the Press Release
JOHN PHILIP MORRILL, JR., age 32, a resident of New Orleans, Louisiana, was charged in a four-count superseding bill of information filed today for assault upon a federal officer, access device fraud and bank fraud, announced U. S. Attorney Dana J. Boente.
According to the Superseding Bill of Information, on or about September 21, 2012, MORRILL knowingly assaulted Special Agent Brian Rossitto of the United States Secret Service who was engaged in the performance of his official duties. MORRILL is also charged with two counts of access device fraud, and one count of bank fraud for devising a scheme to defraud the ASI Federal Credit Union.
If convicted of the assault upon a federal officer count, MORRILL faces a maximum term of imprisonment of 8 years, a fine of $250,000, and a 3 year term of supervised release. If convicted of both counts of access device fraud, MORRILL faces a maximum term of 10 years imprisonment as to each count, a fine of $250,000 as to each count, and a 3 year term of supervised release following each term of imprisonment. If convicted of the bank fraud count, MORRILL faces a maximum term of imprisonment of 30 years, a fine of $250,000, and a 3 year term of supervised release, and a special assessment fee of $100 as to each count.
U. S. Attorney Dana J. Boente reiterated that the superseding bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the United States Secret Service. The case is being prosecuted by Assistant U. S. Attorney Julia K. Evans.
(Download Bill of Information )
Nationwide Oxycodone Trafficking Ring DismantledRead the Press Release
18 Defendants from Four States ConvictedPORTLAND, Ore. – Kingsley Iyare Osemwengie, 27, of Las Vegas, Nevada, was sentenced by U.S. District Senior Judge Ancer L. Haggerty today to 210 months in prison. Osemwengie pled guilty in December of 2012 to a three-count indictment charging him with conspiracy to distribute oxycodone, conspiracy to launder drug proceeds, and conspiracy to violate the travel act, for his pivotal role in an oxycodone distribution ring that involved drug trafficking and money laundering activity in Massachusetts, Nevada, Texas, Florida, Georgia, Utah, Colorado, New York, Washington, Alaska, Pennsylvania, and Oregon, between January 2008 and his arrest in March of 2011. He became the 18th defendant convicted in this case. This investigation, dubbed Operation Trick or Treat, was the largest oxycodone trafficking case in the history of the District of Oregon based on the sheer volume of oxycodone distributed, the geographic scope of the conspiracy, and the enormous profits generated for the benefit of the defendants.
“This is the largest oxycodone trafficking conspiracy ever prosecuted in Oregon, and one of the largest in the nation,” said United States Attorney Amanda Marshall. “Stemming the flow of prescription opiates is a crucial feature of our drug enforcement strategy, as addiction from these drugs and the conversion to heroin use is a national epidemic. I commend the exceptional agency partnerships that brought these conspirators to justice. In addition to the sentence in this case, the court forfeited more than $600,000 in drug proceeds. Taking the profit out of drug trafficking is another key part of our deterrence strategy.”
Oxycodone is a Schedule II drug under the federal Controlled Substances Act. As a prescription-only product, this powerful pain reliever from the opioid family carries a high risk of abuse, addiction, and overdose, including death. In 2011, at least 93 overdose deaths in Oregon were caused by oxycodone and its cousin painkiller hydrocodone. People who become addicted to oxycodone often switch to the opiate heroin that is much cheaper and more easily obtainable on the street. This frequently leads to heroin addiction, overdose, and occasionally death.
While on supervised release for two prior federal felonies involving fraud, Osemwengie, operating from Las Vegas, Nevada, and associate Olubenga Temitope Badamosi, 34, a Nigerian citizen living in Milwaukie, Oregon, arranged for tens of thousands of oxycodone pills, acquired in Miami and Las Vegas, to be distributed to customers all over the United States. They used call girls and couriers to transport oxycodone and money across the country. Investigators identified 774 airplane flights for 71 different couriers to 40 different American cities at a total cost of $96,000 during the life of the conspiracy. At other times, drugs and money were transported by commercial carrier or through the mail. Over 10,000 oxycodone pills and 1,900 counterfeit oxycodone pills were seized by investigators in this case. A single 80 milligram oxycodone pill sold for a range of $30 wholesale to $80 retail.
Osemwengie, Badamosi, and other conspirators netted millions of dollars of drug proceeds that allowed them to live opulent lifestyles. Between January of 2008 and October of 2010, cash deposits totaling $1,218,000 were made into six bank accounts controlled by Osemwengie. He created several shell companies to disguise the source of his income and maintained luxury residences in Las Vegas, Nevada, and Miami, Florida, one of which carried a $10,000 per month rent. Meanwhile, he drove high-end automobiles including two Mercedes Benzes and four Bentleys, one of which he purchased with $118,500 in cash. Badamosi acquired expensive jewelry appraised at $114,000, including two flashy, diamond-encrusted watches containing 800 and 1,000 diamonds, respectively. Defendant Allotey owned a diamond-studded pendant appraised at $32,000. Investigators seized and forfeited all of this jewelry, along with over $133,000 in cash, bank accounts totaling over $100,000, six (6) handguns, and nine (9) vehicles, including two Bentleys and four Mercedes Benzes. The dollar value of the forfeited assets exceeds $600,000.
The following defendants have previously been sentenced for oxycodone conspiracy charges arising out of this case:
- Badamosi, 34, of Milwaukie, OR, sentenced to 87 months prison;
- David George Hollins II, 29, of Portland, OR, sentenced to 41 months prison;
- Hung Van Pham, 32, of Vancouver, WA, sentenced to 27 months prison;
- Shaun Wesley Tyler, 32, of Las Vegas, NV, sentenced to 37 months prison;
- Marcus Charles Albert, 33, of Las Vegas, NV, sentenced to 63 months prison;
- Melvin A. Allotey, 29, of Las Vegas, NV, sentenced to 48 months prison;
- Mei Lynn Pham, 32, of Portland, OR, sentenced to 33 months prison;
- Adam Garrott Lewis, 28, of Portland, OR, sentenced to 37 months prison;
- Leamon Dlloyd Madden, 28, of Portland, OR, sentenced to 37 months prison;
- Isaiah Griffith, 28, of Portland, OR, sentenced to 30 months prison;
- Heather O'Rourke, 22, of Portland, OR, sentenced to 27 months prison;
- Christopher Gene Buckland, 35, of Portland, OR, sentenced to 30 months prison;
- Heath Leroy Bloodgood, 42, of Portland, OR, sentenced to 37 months prison;
- Thanh Quoc Nguyen, 32, of Portland, OR, sentenced to 41 months prison; and,
- Lee Justin Wells, 34, of Tacoma, WA, sentenced to 41 months prison.
Two other codefendants have pled guilty to related oxycodone conspiracy charges and are scheduled for sentencing before Judge Haggerty in Portland:
- Reina Tomiko Nakachi, 27, of Las Vegas, NV, sentencing on June 10, 2013, and,
- Sarah Nilsen, 26, of Miami, FL, sentencing on June 17, 2013.
“Opiate addiction is the center of the storm which leaves behind a path of devastation,” said DEA Special Agent in Charge Matthew G. Barnes. “This was a sophisticated drug trafficking organization that diverted legitimate medicine into the black market across the United States. The sheer greed of these 18 defendants led them to live lavish lifestyles while ruining many lives. DEA and our law enforcement partners are determined to continue to aggressively pursue those who are responsible for the high rate of prescription drug abuse in Oregon.”
“Prescriptions such as oxycodone used illegally can destroy lives—especially in young people who may use it as a springboard to other illegal narcotics,” stated Portland Police Chief Mike Reese. “The successful prosecution of large-scale distribution and trafficking cases such as this will help stop the flow of illegal oxycodone into the hands of our children and our community.”
“Today’s prison sentence is a reminder of the serious consequences drug traffickers face for bringing illicit drugs into our communities,” said Bradford Bench, Special Agent in Charge of ICE Homeland Security Investigations (HSI) Seattle. “When you’re talking about a dangerous and highly addictive drug that ruins lives and fosters further crime with illicit profits, the risks to public safety are real. HSI remains committed to dismantling the international drug trade while ensuring that those involved don’t benefit financially.”
“These sentencings are a reminder that justice will be served on individuals who put the safety of our community at risk by selling and profiting from the illegal sale of the dangerous drug oxycodone,” said Tamera D. Cantu, Assistant Special Agent of IRS Criminal Investigation in Seattle. “IRS CI and our law enforcement partners are committed to dismantling similar drug trafficking organizations.”
This case was initiated in June of 2010 by the Oregon HIDTA Interdiction Task Force (HIT) who partnered with the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the Internal Revenue Service (IRS), and the Portland Police Bureau. Additional law enforcement assistance was provided by the U.S. Marshals, Oregon National Guard, Las Vegas Metropolitan Police Department, Ft. Lauderdale Police Department, Broward County Sheriffs Office, Clackamas County Sheriffs Office, Westside Interagency Narcotics Task Force (WIN), and the Clark-Vancouver Drug Task Force. Assistant U.S. Attorneys Geoffrey A. Barrow and John F. Deits, prosecuted the criminal case. Assistant U.S. Attorneys Leslie Westphal and AnneMarie Sgarlata handled the asset forfeitures in the case.
This case was an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF is a federally-funded program established in 1982 whose mission is to support comprehensive, multi-agency investigations designed to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations. This case was also an investigation under the Oregon High Intensity Drug Trafficking Area (HIDTA) program, sponsored by the White House's Office of National Drug Control Policy (ONDCP). HIDTA is a counterdrug grant program that provides funding, coordination, and intelligence resources to multi-agency drug enforcement task forces seeking to disrupt or dismantle local, multi-state, and international drug trafficking and money laundering organizations.
Mission Woman Sentenced for Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, woman convicted of Assault with a Dangerous Weapon was sentenced on April 29, 2013, by U.S. District Judge Roberto A. Lange. Dadra Connors, age 35, was sentenced to 30 months in custody, 2 years of supervised release, and $100 to the Federal Crime Victims Fund.
Connors was indicted by a federal grand jury on July 18, 2012, and pled guilty to the charge on January 9, 2013.
The conviction stems from an incident that took place on May 20, 2012, when Connors drove her truck at the victim as he was walking across a gravel road. The victim dove into the ditch to avoid being hit. During the process, a second victim was ejected from the cargo area of Connors' truck and was injured.
The investigation was conducted by Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Timothy M. Maher.
Connors was remanded to the custody of the U.S. Marshal.
Middlesex County, N.J., Man Charged with Bank Robbery in Saddle Brook, N.J.Read the Press Release
NEWARK, N.J. - A Middlesex County, N.J. man made his initial appearance in federal court today following his arrest in connection with a bank robbery, U.S. Attorney Paul J. Fishman announced.
Jorge Rodriguez, 45, of South River, N.J., is charged by Complaint with one count of bank robbery. He appeared before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to the Complaint:
On April 19, 2013, Rodriguez allegedly approached the customer counter at a TD Bank in Saddle Brook, brandishing what appeared to be a handgun in the direction of the teller. He handed the teller a paper shopping bag, and instructed the teller to put money into the bag, threatening to shoot the teller if she did not comply with his demands. At the time of the robbery, Rodriguez was wearing a baseball cap and glasses and had what appeared to be long hair and facial hair. Rodriguez was apprehended later that same day in a nearby residential neighborhood. Police recovered, among other things, cash, a BB pistol, the baseball cap, wig and fake facial hair, all allegedly worn by Rodriguez during the robbery.
If convicted on the bank robbery charge, Rodriguez faces a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the charge. He also thanked the Saddle Brook Police Department for their contribution to the case.
The government is represented by Assistant U.S. Attorney David M. Eskew of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
13-177
Defense counsel: Donald J. McCauley Esq., Assistant Federal Public Defender, NewarkRodriguez Complaint
McLaughlin Man Pleads Guilty to Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that Verle Janis a/k/a Verl Janis, age 31, of McLaughlin, South Dakota appeared before U.S. District Judge Charles B. Kornmann on April 23, 2013 and pled guilty to a Superseding Information that charged him with Assaulting, Resisting and Impeding a Federal Officer. The maximum penalty upon conviction is 8 years' imprisonment, a $250,000 fine or both, and a period of supervised release of 3 years.
The conviction stems from an incident in January of 2013 when a Bureau of Indian Affairs (BIA) officer was dispatched to the Bear Soldier West housing project in McLaughlin. Upon arrival, he observed several individuals in the residence and requested a warrant check. He was advised that Janis was on probation with conditions that prohibited alcohol. When the officer attempted to place the Defendant in handcuffs, he became uncooperative and refused to comply. The BIA Officer removed his taser and the Defendant momentarily complied and was placed in the back seat of the patrol unit.
The BIA Officer then secured several personal items left in the house by the Defendant and upon opening the back door to the patrol unit, was kicked in the shoulder by the Defendant. The BIA Officer was forced to remove the Defendant from the patrol unit in order to place him in leg restraints. As he attempted to secure the Defendant, the Officer was kicked in the leg several times.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. The case is being prosecuted by Assistant U.S. Attorney Troy Morley.
A presentence investigation was ordered and a sentencing date was set for July 22, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Man Pleads Guilty to Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with A MinorRead the Press Release
WASHINGTON – George G. Kahl, 42, of Alexandria, Va., pled guilty today to traveling interstate to engage in illicit sexual conduct with a minor, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Kahl entered the guilty plea in the U.S. District Court for the District of Columbia. The Honorable Rosemary M. Collyer is to sentence him on July 26, 2013. Kahl faces a maximum sentence of 30 years of imprisonment as well as a fine of $250,000.
According to the government's evidence, on Feb. 9, 2013, Kahl contacted a man he believed to be the father of an under-aged female child on a social network site. That man turned out to be an undercover officer with the FBI's Child Exploitation Task Force. Over the next few days, Kahl engaged in graphic online e-mail and text message conversations with the undercover officer. During these conversations, Kahl arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the purported child. On Feb. 22, 2013, Kahl traveled from Alexandria to Washington, D.C. for that purpose and was arrested.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended Assistant U.S. Attorney Ari Redbord, who is prosecuting the case.
13-150Man Pleads Guilty to Attempting to Ship Methamphetamine and Cocaine to the Philippines in Redwood CityRead the Press Release
SAN FRANCISCO - Gabriel Uribe-Bautista pleaded guilty in federal court in San Francisco on April 23, 2013 to distribution of cocaine and 500 grams or more of a mixture and substance containing methamphetamine, United States Attorney Melinda Haag announced.
In pleading guilty, Uribe-Bautista admitted that on August 24, 2012, he possessed and attempted to ship two packages to the Philippines containing a total of 2.87 net kilograms of a mixture and substance containing methamphetamine and 27.96 net grams of cocaine. Uribe-Bautista admitted that obtained the methamphetamine and cocaine from an individual with the understanding that he would ship them to the Philippines, and he accepted money from the individual in return for arranging shipment of the drugs. On August, 24, 2012, Uribe-Bautista traveled from Redwood City to the ABS-CBN International shipping company in Redwood Shores, California, with packages containing the methamphetamine and cocaine. He took the packages into the shipping company and arranged for them to be shipped to the Philippines, using a fake name that he had been given to put on the boxes. Uribe-Bautista admitted that he had previously shipped packages for the same individual in a similar manner.
Authorities were tipped off to investigate when employees at the shipping company notified law enforcement because they found large quantities of an unknown white substance in the packages that had been dropped off for shipment.
Uribe-Bautista, 37 years old, a Mexican citizen, was indicted by a federal Grand Jury on January 3, 2013. He was charged with two counts of possession with intent to distribute and distribution of cocaine and 500 grams or more of a mixture and substance containing methamphetamine in violation of 21 U.S.C. § 841(a)(1), (b)(1)(A)(viii), and (b)(1)(C). Under the plea agreement, Uribe-Bautista pleaded guilty to both counts.
Uribe-Bautista has been in continuous federal custody since December 27, 2012.
Uribe-Bautista’s sentencing is scheduled for July 9, 2013 before Judge Richard Seeborg in San Francisco. The maximum statutory penalty for possession with intent to distribute and distribution of 500 grams or more of a mixture and substance containing methamphetamine in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(A)(viii) is life imprisonment and a fine of $10,000,000. This violation also carries a mandatory minimum statutory penalty of 10 years imprisonment and 5 years of supervised release. The maximum statutory penalty for possession with intent to distribute and distribution of cocaine in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C) is 20 years and a fine of $1,000,000. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The prosecution is the result of an investigation by the Drug Enforcement Administration and the San Mateo County Narcotics Task Force.
(Uribe-Bautista Indictment )
Lower Brule Man Charged with Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man has been indicted by a federal grand jury.
Jason Long, age 42, was indicted by a federal grand jury on February 13, 2013 for Possession with Intent to Distribute a Controlled Substance.
Long appeared before U.S. Magistrate Judge Mark A. Moreno on April 25, 2013 and pled not guilty to the Indictment. The maximum penalty upon conviction is 20 years of imprisonment, a $1,000,000 fine, or both; a mandatory period of supervised release of at least 3 years up to life; and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment may also be ordered.
The charge is merely an accusation and Long is presumed innocent until and unless proven guilty. The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Long was remanded to the custody of the U.S. Marshal Service. A trial date has not been set.
Landover Woman Indicted for Allegedly Embezzling over $453,000 from Her EmployerRead the Press Release
Greenbelt, Maryland - A federal grand jury today indicted Mercy Coffie-Joseph, a/k/a Mercy A. Coffie, age 40, of Landover, Maryland, on charges of wire fraud and money laundering in connection with a scheme to embezzle over $453,000 from her employer. She was also charged with making a false statement in a passport application, using a passport obtained through a false statement and aggravated identity theft.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge Niall Meehan of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service.
According to the 10 count indictment, from May 2010 through February 15, 2013, Joseph was employed by Systems Assessment & Research, Inc. (SAR), where she had the authority to make electronic payments to contractors on SAR’s behalf. The indictment alleges that during the time of her employment, Joseph allegedly stole $453,125.52 from her employer by initiating funds transfers from SAR bank accounts to bank accounts she owned and/or controlled. The indictment alleges that Joseph laundered the money, using the stolen funds to draw two cashier’s checks for $40,000 and $50,000, respectively, to purchase a house in Ghana.
The indictment also alleges that Joseph used the name and date of birth of another individual, without the person’s knowledge or permission, to apply for and receive a United States passport, which Joseph then used to travel to Ghana.
The indictment seeks forfeiture of the proceeds of the wire fraud, including $453,125.52 in cash, as well as property discovered at Joseph’s home during the execution of a search warrant on April 15, 2013, including a video camera worth approximately $10,000, a Gucci handbag purchased for approximately $885, diamond earrings and necklace, a Movado watch, and computers.
Joseph faces a maximum sentence of 20 years in prison for each count of wire fraud and money laundering; a maximum of 10 years in prison for making a false statement on a passport application; and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft.
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.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the FBI and U.S. Department of State’s Diplomatic Security Service for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Thomas P. Windom and Robert K. Hur, who are prosecuting the case.
Kansas City Lawyer Sentenced to Five Years for Conspiracy to Launder Drug MoneyRead the Press Release
KANSAS CITY, KAN. – A Kansas City lawyer has been sentenced to five years in federal prison for conspiring to launder drug money of an undercover agent posing as a marijuana dealer, U.S. Attorney Barry Grissom said today.
Ronald E. Partee, 66, Kansas City, Mo., pleaded guilty to one count of conspiracy to commit money laundering and one count of money laundering.
In his plea, Partee admitted he conspired with co-defendants Mendy Read-Forbes, 38, Platte City, Mo., and Laura Shoop, 46, Platte City, Mo. The investigation began in March 2012 when a KBI agent working undercover met Read-Forbes. Read-Forbes was holding herself out as the owner of Forbes & Newhard Credit Solutions, Inc., a nonprofit organization established to provide credit counseling to people who were in bankruptcy proceedings. In fact, she was not the legal owner but exercised control of the company's bank account along with Partee. Shoop was an acquaintance of Read-Forbes who worked at various times for the company.
The KBI agent was posing as a marijuana dealer. Forbes offered to consult with Partee and to devise a scheme to launder the dealer’s drug proceeds. As part of the scheme, Forbes offered to deposit money given to her by the agent she thought was a drug dealer into the bank accounts of Forbes and Newhard Credit Solutions or related companies and then to return the money to the dealer via checks, money orders or wire transfers. The bank accounts were in Kansas.
To make the transactions appear legitimate, Forbes gave the drug dealer a contract titled “Purchase and Sale of Business Agreement.” The contract, bearing the signature of Partee and the drug dealer, made it appear that the marijuana dealer was purchasing assets of FCP, Inc., a corporation controlled by Forbes and Partee.
To make it appear that the drug dealer was engaged in business as a certified credit counselor with Forbes and Newhard Credit Solutions, Forbes gave the drug dealer a certificate saying he had completed training as a bankruptcy specialist.
In addition, Forbes created a fictitious company called Maximum Lawn Care, LLC, and opened bank accounts where cash from the drug dealer was deposited.
Partee was at various times a member of the board of directors for Forbes and Newhard and a signator on FCP's bank accounts. On April 20, 2012, Partee approved two wire transfers from the FCP account that he believed were drug funds. He sent $5,000 to a bank account of Maximus Lawn Care and $5,000 to the bank account of an undercover agent posing as a drug dealer. During a meeting May 25, 2012, at Partee's office, the undercover agent posing as a drug dealer sought advice from Partee concerning where he could store marijuana. During the meeting, which was recorded, Partee engaged in the discussion.
Defendants Read-Forbes and Shoop are awaiting trial. In a separate case, Mendy Read-Forbes and Brian Forbes have been charged with one count of conspiracy to defraud and one count of money laundering.
Grissom commended the Kansas Bureau of Investigation, the U.S. Secret Service, the Internal Revenue Service, the Department of Housing and Urban Development, Assistant U.S. Attorney Chris Oakley and Assistant U.S. Attorney Jabari Wamble for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Insurance Agent Pleads Guilty to Personal Income Tax EvasionRead the Press Release
TRENTON, N.J. – An insurance agent admitted today he evaded paying taxes related to income derived from his sale of insurance products from 2001 through 2005, U.S. Attorney Paul J. Fishman announced.
Ronald Patetta, 58, of Branchburg, N.J., pleaded guilty before U.S. District Judge Peter G. Sheridan to Count Three of the Indictment against him, which charged him with tax evasion.
According to documents filed in this case and statements made in court:
From 2001 through 2005, Patetta worked as a licensed insurance agent and sold insurance products for a number of different insurance companies. Although the insurance companies paid Patetta wages and commissions in excess of nearly $900,000 during those years, Patetta did not pay any taxes on that income. In April 2007, Patetta filed for bankruptcy under Chapter 13 of the U.S. Bankruptcy Code. Patetta listed his assets and liabilities in his bankruptcy filing, including liabilities of approximately $440,000 for past taxes owed to the IRS.
Between July 2006 and October 2006, Patetta filed false income tax returns for the 2001 and 2005 tax years showing that he had earned no income for those years and owed no taxes. He also fabricated IRS-1099 forms purportedly from various insurance companies that he attached to his tax returns. These forms falsely showed that the insurance companies paid him no income for the years in question.
Patetta took steps to obstruct the IRS investigation. He sent letters and filed court papers challenging the legality of the IRS’ conduct, their legal authority to perform their jobs, and threatening them with legal action if they persisted. Patetta also sent “cease and desist” letters to the various insurance companies, threatening them with legal action if they complied with any IRS summonses requesting information concerning Patetta.
The charge to which Patetta pleaded guilty is punishable by a maximum potential penalty of five years in prison and a fine of $250,000. Sentencing is scheduled for Sept. 4, 2013.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, with the investigation of the case.
The government is represented by Assistant U.S. Attorney Gurbir S. Grewal of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark.
13-174Defense counsel: Alain Leibman Esq., Lawrenceville, N.J.
Patetta Indictment
Honduran Sentenced to Time-Served for Illegally Re-entering United StatesRead the Press Release
PITTSBURGH - An individual found in Homestead, Pa., pleaded guilty and has been sentenced in federal court to time-served on his conviction of re-entry into the United States after deportation, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Wilson Baca-Ortiz, 33, formerly from Honduras.
According to the information presented to the court, Wilson Baca-Ortiz, an alien, was removed from the United States by U.S. States Immigration and Customs Enforcement on Nov. 21, 2005. Wilson Baca-Ortiz was found on March 21, 2013, pursuant to an on-going investigation into another immigration matter.
Assistant United States Attorney Paul E. Hull prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Immigration and Customs Enforcement for conducting the investigation leading to the successful prosecution of Baca-Ortiz.
Grapeland Man Indicted for Anderson County Child Exploitation ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas — A 45-year-old Grapeland, Texas man has been arrested on child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Robbie Newby was indicted by a federal grand jury on Apr. 17, 2013, and charged with four counts of sexual exploitation of a child and one count of possession of child pornography. Newby went before U.S. Magistrate Judge John D. Love today for an initial appearance.
According to the indictment, from January to March 2012, Newby coerced or persuaded a minor to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct. The conduct is alleged to have occurred in Anderson County, Texas.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
If convicted, Newby faces a minimum of 15 years in federal prison for each of the exploitation charges and up to 10 years for the possession charge.
This case is being investigated by the Department of Homeland Security - Homeland Security Investigations DHS-HSI and the Anderson County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Nathaniel Kummerfeld.
It is important to note that an arrest, indictment, or complaint should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.Gavin Guilty PleaRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced today that JEANNE L. GAVIN, age 61, of Baton Rouge, pled guilty before Chief U.S. District Judge Brian A. Jackson to exceeding authorized access to a government computer, in violation of Title 18, United States Code, Section 1030, and engaging in a criminal conflict of interest, in violation of Title 18, United States Code, Section 205. As a result, the defendant faces up to two years in prison, a $200,000 fine, and one year of supervised release following imprisonment. Sentencing is scheduled for September 12, 2013.
The defendant’s convictions stem from actions she took while serving as a Supervisory Internal Revenue Agent and Group Manager in the Baton Rouge office of the Internal Revenue Service. In that role, the defendant supervised approximately ten revenue agents responsible for determining federal tax liability and collecting owing taxes for individual, partnership, and corporate taxpayers.
During today’s hearing, the defendant admitted that, while working for the IRS, she engaged in a criminal conflict of interest with her IRS employment by owning and operating a private tax and accounting business which generated over $70,000. The defendant further admitted to using her position as an IRS Manager to improperly cause subordinates to access IRS databases on over 2000 occasions for the benefit of her private tax and accounting business.
U.S. Attorney Cazayoux stated: “My office, together with our federal, state, and local partners, will continue to aggressively pursue instances of public corruption wherever found. Public confidence in our governmental institutions, particularly those agencies entrusted to tax collection, is vitally important. The criminal acts of a few undermine such confidence, while overshadowing the honest efforts of the vast majority of public servants. My great appreciation to the Office of Treasury Inspector General for Tax Administration (TIGTA) who worked tirelessly with our office and the Federal Bureau of Investigation (FBI) in this important matter.”
Inspector General J. Russell George of TIGTA stated: “As our voluntary system of tax administration relies heavily upon the public’s confidence in a fair tax system, IRS employees must conduct themselves with the highest level of integrity and their conduct must be above reproach. Our message is loud and clear: TIGTA will vigorously investigate and recommend criminal prosecution for any IRS employee who violates the law.”
This matter was investigated by this office, TIGTA, and the FBI. The case is being prosecuted by Assistant United States Attorney Corey R. Amundson who serves as the Senior Deputy Chief of the Criminal Division.
Gainesville Man Charged with Making and Distributing Child PornographyRead the Press Release
Victims Were Two Girls in Defendant’s Care
GAINESVILLE, Ga. – Michael Cannon, II, was arraigned today on charges that he produced, distributed, and received child pornography. The indictment was returned by a federal grand jury on April 9, 2013.
“Photographing molestation and trading the images over the Internet with like-minded individuals in exchange for more child pornography is horrendous,” said United States Attorney Sally Quillian Yates. “Child pornography robs children of their innocence. It also places a permanent record of the victimization of these children on the internet. To make matters even worse, in this case the two girls were in the defendant’s care. Law enforcement officers have identified and rescued the children, and the defendant will now have to answer for participating in this cycle of victimization.”
“While HSI special agents are working around the clock and around the world to drain the cesspool that is child pornography, the identification and rescue of victims suffering at the hands of depraved child predators is of the highest priority,” said Brock D. Nicholson, Special Agent in Charge of Homeland Security Investigations, Atlanta. “Every single law enforcement agency in this country is absolutely dedicated to hunting down these predators and holding them accountable for their despicable actions. I strongly encourage citizens everywhere to do their part to help protect our innocent children by reporting any signs of abuse they witness. It will take the collective efforts of law enforcement and members of our communities to successfully bring these monsters to justice.”
According to United States Attorney Yates, the charges and other information presented in court: In mid-December 2012, Cannon, 33, of Gainesville, Ga., allegedly posted several images of a 10-year-old girl on a foreign-based website where people could post and share photographs. At least one of the images was child pornography. Several individuals posted comments on Cannon’s photographs and asked about trading photos. According to the information presented in court, Cannon gave them his e-mail address and, when they wrote him, he sent them explicit photographs showing him in the act of molesting two young girls. In return, he received dozens of e-mails containing images and videos of other children being sexually abused. As part of their investigation, special agents determined the true identities of the two minor victims that Cannon is alleged to have .photographed and posted online.
The charge of producing child pornography carries a mandatory minimum period of confinement of 15 years and a maximum sentence of 30 years in prison. The charge of receiving child pornography carries a mandatory minimum confinement period of 5 years and a maximum term of 20 years in prison. The charge of possessing child pornography carries a maximum sentence of 10 years in prison. Each charge carries a fine of up to $250,000 and a period of supervised release from 5 years to life. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that the indictments only contain charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove each defendant’s guilt beyond a reasonable doubt at trial.
These cases are being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney's Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by Special Agents of the United States Department of Homeland Security, Homeland Security Investigations.
Assistant United States Attorney Paul R. Jones is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Fort Yates Man Sentenced for Assault & Burglary ChargesRead the Press Release
BISMARCK - U.S. Attorney Timothy Q. Purdon announced that on April 29, 2013, Lionel R. Jewett, 21, of Fort Yates, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on two counts of burglary, a count of assault with intent to commit murder, and two counts of assault with a dangerous weapon. Jewett pleaded guilty to the charges on Aug. 20, 2012.
Judge Hovland sentenced Jewett to serve six years in federal prison, to be followed by three years of supervised release. Jewett was ordered to pay $500 in special assessments to the Crime Victim’s Fund and $12,041.17 in restitution.
On March 30, 2011, Jewett and a co-defendant broke into a garage owned by the Catholic church in Fort Yates and took a vehicle, tools and some money. Jewett was also involved with a second burglary at the church on Oct. 15, 2011, in which tools were stolen.
In a separate incident on Jan. 16, 2012, Jewett attacked two women in the Fort Yates area. Jewett assaulted the first woman by using a garden hoe and a fence post pounder. Jewett also kicked the first woman and a second woman while wearing shoes.
The case was investigated by the Bureau of Indian Affairs - Standing Rock Agency, the Federal Bureau of Investigation and the Standing Rock Police Department.Assistant U.S. Attorney Gary Delorme prosecuted the cases.
Former Kinston City Council Member Pleads Guilty to Child Pornography ChargeRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today, WILLIAM WALTER BARKER 44, of Kinston, North Carolina pled guilty before Senior United States District Judge James C. Fox to one count of Receipt of Child Pornography, in violation of Title 18, United States Code, Section 2252 (a)(2).
According to the investigation, the Freemont Police Chief received a USB thumbdrive found in the Freemont Town Hall Board of Alderman meeting room near where BARKER was sitting during a meeting he attended. BARKER was employed by a CPA firm in Kinston and attended the meeting to present and discuss the town audit. The thumbdrive contained images of child pornography along with other documents belonging to BARKER. Subsequently, a search warrant of BARKER’S residence in Kinston was executed on November 29, 2012. BARKER was home at the time and admitted to possessing a thumb dive that matched the description of the thumb drive found in Freemont’s Town Hall. A laptop computer recovered during the search of BARKER’S home contained over 4,000 images and 100 videos of child pornography.
BARKER faces a sentence of not less than 5 years imprisonment nor more than 20 years imprisonment along with a fine up to $250,000 and up to a lifetime of supervised release at sentencing.
This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level.
Investigation of this case was conducted by the North Carolina State Bureau of Investigation and the Freemont Police Department. Assistant United States Attorney Ethan A. Ontjes prosecuted the case.
Former CEO and Two Associates Sentenced to Prison Terms for Conspiracy to Impede the Lawful Functions of the Internal Revenue ServiceRead the Press Release
WASHINGTON - Shelly S. Singhal, Dennis L. Pelino, and Loretta Fredy Bush, formerly of Xinhua Finance Limited (Xinhua Finance), a Chinese company trading publicly in Japan, were sentenced today to prison terms after earlier pleading guilty to a charge of conspiracy to impede the lawful functions of the Internal Revenue Service.
All three defendants pled guilty in February 2013 in the U.S. District Court for the District of Columbia. They were sentenced by the Honorable Chief Judge Royce C. Lamberth.
Singhal, 45, of Newport Beach, Calif., and Pelino, 65, of Miami Beach, Fla., were each sentenced to nine months of incarceration. Bush, 54, of San Francisco, was sentenced to one month of incarceration. Following their terms, each defendant will be placed on three years of supervised release. Bush will be required to serve the first 150 days of her release period in home confinement. Chief Judge Lamberth also ordered each defendant to pay $20,000 fines.
The sentences were announced by Mary B. McCord, Acting U.S. Attorney in this case, Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation.
In connection with the guilty pleas and as set forth in detail in the executed Statements of Offense, the defendants acknowledged that Singhal was the owner and Chairman of SBI Advisors, LLC, a California limited liability company engaged in the business of providing investment advisory services as well as buying and selling securities. Bush and Pelino acknowledged that, from time to time, they participated in investment and borrowing opportunities developed and recommended by Singhal.
Beginning in or about April 2005, Entrée Capital, a limited liability company formed at Singhal’s direction, opened an account at the First Internet Bank of Indiana and transferred funds to Bush and Pelino. Bush and Pelino executed a series of promissory notes obligating them to repay the funds within a fixed term and to pay interest annually at a fixed rate, but the notes did not provide for the method of calculating interest (simple or compound).
The defendants acknowledged that, in or about August 2006, documentation was executed to transfer the ownership of Entrée Capital to a foreign national residing outside the United States. Employees of SBI Advisors continued to maintain Entrée Capital’s books and records. Between January 2006 and January 2009, Bush and Pelino made several interest payments at the rates prescribed in the promissory notes they had executed, but these payments were not made according to any fixed schedule.
Singhal, Bush and Pelino acknowledged that, in or about October 2008, the Entrée Capital account at the First Internet Bank of Indiana was closed by the management of the bank. Each of the defendants acknowledged that, by in or around February 2009, he or she had learned that the Entrée Capital account was closed. In addition, the defendants acknowledged that in 2009 and continuing into early 2010, they became aware that the foreign national to whom ownership of Entrée Capital had been assigned had failed to respond to inquiries or otherwise acknowledge his ownership of Entrée Capital.
The defendants acknowledged that from April 15, 2010 through May 10, 2011, they conspired to impede the lawful functions of the Internal Revenue Service in the ascertainment, assessment, and determination of whether the principal balances owed to Entrée Capital by Bush and Pelino had become forgiven debt and represented income to Bush and Pelino.
As of April 15, 2010, the principal balances owed by Bush and Pelino to Entrée Capital were approximately $2,153,663 and $1,380,633, respectively. The defendants acknowledged failing to notify and otherwise concealing from the Internal Revenue Service that the nominal owner of Entrée Capital had effectively abandoned its assets, including the principal balances payable to Entrée Capital by Bush and Pelino, to delay the payment of any income tax due and owing on those unpaid amounts as forgiven debt. They acknowledged discussing among themselves and with others the fact that the owner of Entrée Capital was a foreign national and that any information in the foreign national’s possession was possibly beyond the authority of the Internal Revenue Service to obtain. Singhal did not direct his employees at SBI Advisors, who maintained Entrée Capital’s books and records, to issue Forms 1099-C (Cancellation of Debt) to Bush and Pelino, which forms would have notified the Internal Revenue Service that Entrée Capital was treating the principal balances payable to Entrée Capital by Bush and Pelino as forgiven debt. Bush and Pelino acknowledged filing Forms 1040 (U.S. Individual Tax Return) for the tax year 2009, which returns failed to declare any portion of the $2,153,663 and $1,380,633 owed to Entrée Capital as income to Bush and Pelino, respectively.
As part of the plea agreements, the government agreed to move at sentencing to dismiss with prejudice the indictments previously returned against the defendants.
Three others earlier pled guilty to charges in the investigation.
In announcing the sentences, Acting U.S. Attorney McCord, Assistant Director in Charge Parlave, and Special Agent in Charge Kelly praised the investigative efforts of the Special Agents of the FBI’s Washington Field Office and the IRS-Criminal Investigation Division. They also recognized the work of U.S. Attorney’s Office Forensic Accountant Crystal Boodoo, Paralegal Specialist Tasha Harris, and Legal Assistants Lenisse Edloe and Krishawn Graham. Finally, they commended the efforts of Trial Attorney Kenneth C. Vert, U.S. Department of Justice, Tax Division, Northern Criminal Enforcement Section, and Assistant U.S. Attorneys Jonathan Hooks and Michael K. Atkinson, who prosecuted the case.
13-148Former Beckley Police Dept. Evidence Technician Sentenced to Four Years’ Probation for Stealing Prescription PainkillersRead the Press Release
BECKLEY, W.Va. – Gabriella Brown, the former Beckley Police Department evidence technician, was sentenced today to four years’ probation for stealing oxycodone pills from the Department’s evidence storage room in August 2012. Brown was sentenced by Senior United States District Judge David A. Faber. Brown, 31, of Beckley, W.Va., previously pleaded guilty in December 2012 to obtaining controlled substances by misrepresentation, fraud, forgery, deception and subterfuge.
Brown’s crime prompted the dismissal of a number of drug prosecutions that involved evidence stored in the Beckley Police Department evidence room.
The Drug Enforcement Agency Tactical Diversion Squad was in charge of the investigation. Assistant United States Attorney Steven I. Loew handled the prosecution.
This case was being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Florida Woman Pleads Guilty to Running Stolen Identity Fax Fraud SchemeRead the Press Release
St. Louis, MO -TANIA HENDERSON, of Wesley Chapel, Florida, pled guilty to filing false tax returns using stolen identification of other people. She entered her plea in federal court in St. Louis before United States District Judge Carol E. Jackson.
According to court documents, between July and November 2012, Henderson’s plan involved obtaining the personal information of individuals, including their names and social security account numbers, and using the information to submit tax returns in the names of those individuals whose identities she had stolen. She manipulated the numbers on those tax returns so that the taxpayer would be due a refund-- typically in the $7,000-$8,000 range and used family and friends to receive and liquidate these refunds.
U.S. Attorney Richard G. Callahan observed that, "It used to be that most of the people we prosecuted for tax fraud were cheating on their own tax returns. Now, most of the people we are prosecuting for tax fraud are cheating with other people's tax returns."
The prosecution claims at least 236 bogus tax returns were filed in the names of victims of identity theft. Additionally, nearly 200 other individuals had their stolen identities used elsewhere in these returns. In all, the tax returns generated at least $1,824,919 in illegal refunds. The IRS was able to recall or intercept some of these refunds before they came into the control of Henderson and her network of friends and family. However, approximately $1,363,384 made it into her control, which she shared with her friends and family. She also used it to rent a luxury home in suburban Tampa, Florida, and purchase BMW and Jaguar sports cars and expensive electronics.
"The defendants who perpetrated this scheme systematically defrauded the government and the taxpaying public," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. "Protecting taxpayer money is a matter we take very seriously, and IRS Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves by preparing false claims for tax refunds."
Henderson pled guilty to one felony count of theft/embezzlement of public money and four counts of aggravated identity theft. She now faces a maximum penalty of ten years in prison and/or fines up to $250,000 for theft of public money. Each count of aggravated identity theft carries a penalty of two years, which must run consecutively to any other sentence. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Sentencing has been set for July 30, 2013.Three other individuals have pleaded guilty to their role in this scheme. Patrina Taylor, Creve Coeur, pled guilty in March to stealing government funds as part of the scheme. Taylor admitted she attempted to cash a United States treasury check that was generated as a tax refund for a return filed in the name of a deceased individual and made payable to a second deceased individual. Sentencing for Taylor has been set for June 2013.
In addition to Taylor, among those enlisted to receive and liquidate refunds were Jason
Bibbs and Betty Kirkendoll, both of whom resided in the Eastern District of Missouri. Bibbs and Kirkendoll have previously entered guilty pleas and await sentencing.Henderson’s husband, Dwayne Denard Johnson, also of Wesley Chapel, Florida, has been indicted for theft of government funds and aggravated identity theft and awaits trial in the Eastern District of Missouri. As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Mr. Johnson is presumed to be innocent unless and until proven guilty.
This case was investigated by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.Five Men Charged with Running Crack Cocaine Trafficking Operation in Bernalillo and Santa Fe CountiesRead the Press Release
ALBUQUERQUE – Five men have been indicted on federal narcotics and firearms charges as the result of “Operation Rio Grande Stucco,” a DEA led investigation into an organization that allegedly manufactured and distributed cocaine base, more commonly known as “crack” or “crack cocaine,” in Albuquerque, N.M., and Santa Fe, N.M.
The five-count indictment, which was filed under seal on April 9, 2013, charges Gabriel Mirabal, 31, Dominic Anaya, 32, and Sam Elyicio, 36, of Albuquerque, and Michael Jaramillo, 22, and Robert Romero, 25, of Santa Fe, with conspiracy to distribute cocaine base in Bernalillo and Santa Fe Counties between May 2012 and April 2013. Jaramillo also is charged with distributing cocaine base in Santa Fe in March 2012 and Romero is charged with possession of cocaine base with intent to distribute in Santa Fe in July 2012. Romero also is charged with using and carrying a firearm in furtherance of a drug trafficking crime. Mirabal also is charged with possessing cocaine with intent to distribute in Albuquerque in Feb. 2013. The indictment was unsealed following the arrests of three of the defendants.
Mirabal, who was arrested on April 24, 2013, made his initial appearance in federal court on April 25, 2013 and was ordered detained pending trial following a detention hearing on April 26, 2013. Jaramillo and Elyicio were arrested on April 25, 2013 and were ordered detained pending trial following detention hearings held earlier today. Anaya and Romero, who both are currently in state custody on unrelated charges, will be transferred to federal custody to face the charges in the indictment.
If convicted of the drug trafficking charges against them, each of the defendants faces a maximum penalty of not less than five years or more than 40 years in prison. If convicted of the firearms charge, Romero faces a five year prison sentence to run consecutive to any sentence imposed on the drug trafficking charges against him. An indictment is merely an accusation. All criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA and the HIDTA Region III Drug Task Force, and is being prosecuted by Assistant U.S. Attorney Nicholas J. Ganjei. The Region III Drug Task Force is comprised of officers from the New Mexico State Police, Santa Fe Police Department and the Santa Fe County Sheriff’s Office and receives support from the HIDTA – High Intensity Drug Trafficking Area – program. HIDTA is a program of the White House Office of National Drug Control Policy that provides assistance to Federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. The investigation leading to the indictment has been designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program, a nationwide Department of Justice initiative 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.
Female Human Trafficker SentencedRead the Press Release
Defendant Ran an Interstate Prostitution Ring Involving a Juvenile
ATLANTA - Jessica Loren Posey was sentenced today to serve over seven years in federal prison for transporting a 16-year-old juvenile girl to Tennessee, Kentucky, and Ohio for the purpose of prostitution.
“Child sex trafficking is an horrific crime committed by both men and women,” said United States Attorney Sally Yates. “This defendant had no regard for the vulnerability of her victim and lured her into a quick-money lifestyle that led to the juvenile’s repeated sexual exploitation. Human traffickers should take note: You will be found and prosecuted for your role in sexual exploitation.”
“The FBI will continue to make those who engage in human trafficking a priority for investigation and prosecution,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “Today’s sentencing of defendant Posey should provide some solace for those whom she victimized in that she has now been taken off the streets.”
According to United States Attorney Yates, the charges and other information presented in court: In or about April 2010, Posey met the juvenile girl at a party. While the victim was only 16 years old, Posey caused her to engage in prostitution. To facilitate the girl’s commercial sex acts, Posey used a laptop computer to create advertisements of the child that she placed on websites, including backpage.com; uploaded nude photographs of the juvenile on her cell phone and on a website that Posey created; arranged for customers to engage in sex acts with the victim; and rented the hotel rooms where she caused the girl to engage in prostitution. Posey also drove the juvenile, and other young women, to various locations outside Georgia to commit commercial sex acts, including Chattanooga and Knoxville, Tennessee, Ohio and Kentucky. Posey received one half of the proceeds earned by the juvenile victim and the other young women. Following Posey’s arrest, the victim returned to live with her family.
Posey, 25, of Atlanta was sentenced by United States District Judge Richard W. Story to seven years, three months in prison to be followed by five years of supervised release. She was also ordered to pay restitution in the amount of $1,200 to the minor victim, perform 100 hours of community service, and register as a sex offender. Posey was convicted of these charges on February 6, 2013, following her entry of a guilty plea.This case was investigated by Special Agents of the Federal Bureau of Investigation (FBI) with assistance from the FBI’s Metro Atlanta Child Exploitation Task Force, including the Atlanta Police Department, Gwinnett County Police Department, City of Marietta Police Department, Fulton County Police Department, Clayton County Police Department, and the Sandy Springs Police Department.
If anyone has any information about human trafficking, they are encouraged to report the information to the FBI at 404-679-9000.Assistant United States Attorneys Susan Coppedge and Richard Moultrie prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Eagle Butte Man Indicted for Firearm Violations, Larceny and Tampering with A WitnessRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota man has been indicted by a federal grand jury for Possession and Sale of a Stolen Firearm, Drug User in Possession of a Firearm, Larceny and Tampering with a Witness.
Jody Albert Hunt, age 34, was indicted by a federal grand jury on April 12, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 24, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 20 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment. Restitution may also be ordered.
The charges relate to an allegation that Hunt, while he was a drug user, stole firearms and other property from a ranch near Eagle Butte. Later, Hunt attempted to get a witness to submit false information about the case.
The charges are merely an accusation and Hunt is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Hunt was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Dodge City Gang Member Sentenced for Attempted MurderRead the Press Release
WICHITA, KAN. – A member of a Dodge City street gang targeted in a federal racketeering case has been sentenced to 10 years in federal prison for attempted murder, U.S. Attorney Barry Grissom said today.
Jason Najera, 29, Dodge City, Kan., pleaded guilty to one count of attempted murder in furtherance of racketeering. In his plea, Najera admitted that on Aug. 27, 2011, he used a knife to stab two men he mistakenly believed were members of a rival gang.
On that date, Najera accompanied co-defendant Humberto Ortiz when Ortiz went to a residence at 703 9th Avenue in Dodge City. Ortiz and Najera confronted some men they suspected of being members of the Surenos street gang. Ortiz was a member of Los Carnales Chingones and Najera was a member of Diablos Viejos, both of which were associated with the Nortenos street gang and considered Surenos their common enemies.
When a fight started, Najera used a knife to stab victims Gabriel Rivera and Carlos Ramirez. During the fight, both Rivera and Ramirez were stabbed, with Rivera’s injuries requiring a life-flight to a hospital in Wichita.
In his plea, Najera admitted that as a member of the Diablos Viejos he was part of an ongoing criminal conspiracy involving the Nortenos street gang whose members used murder, robbery, assault and acts of violence to protect and expand their operations.
In January, co-defendant Humberto Ortiz was sentenced to 46 months in federal prison.
Najera and Ortiz were among 23 defendants indicted in 2012 who were charged under the federal RICO Act (Racketeering Influenced and Corrupt Organizations Act.) The indictment marked only the second time federal prosecutors in Kansas have filed charges under RICO and VICAR (Violent Crimes in Aid of Racketeering).
Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff’s Office, the Kansas Bureau of Investigation, Assistant U.S. Attorney Aaron Smith and Assistant U.S. Attorney Lanny Welch for their work on the case.
District Man Sentenced to 23-Year Prison Term After Pleading Guilty to Charges in Two Sexual Assaults-DNA Later Tied Him to the Crimes, Including One Committed A Decade Ago-Read the Press Release
WASHINGTON – Anthony Lamont Burns, 39, of Washington, D.C., has pled guilty to charges stemming from two sexual assaults that he committed years ago, including one attack against a 14-year-old girl, U.S. Attorney Ronald C. Machen Jr. announced today.
Burns pled guilty on April 26, 2013, in the Superior Court of the District of Columbia, to charges of first-degree child sexual abuse and attempted first-degree sexual abuse. The plea, which was contingent upon the Court’s approval, called for a sentence of 23 years in prison. The Honorable Robert E. Morin approved the plea and sentenced Burns immediately. Following completion of his prison term, Burns will be placed on five years of supervised release. He also will be required to register as a sex offender for the rest of his life.
According to the government’s evidence, the teenage victim was walking in the 4300 block of Iowa Avenue NW at about 10 p.m. on Jan. 26, 2003 when an unknown man grabbed her by the neck and placed a knife to her chest. The assailant told the girl that if she yelled, he would stab her in the heart. The man forced the girl into his vehicle and then made her perform numerous sexual acts against her will. When he finished, he drove the teenager back to where he had abducted her and allowed her to exit his car and leave. She immediately ran home and reported the assault to her family. Her family, in turn, immediately notified the police.
The girl had never seen Burns before the assault and had no idea who attacked her. However, the assailant’s semen was found on the girl’s underwear, and subsequent DNA analysis, developed after Burns was convicted in 2010 of a separate felony, tied him to the crime.
DNA evidence also linked Burns to a second attack, which took place in 2006. On April 29, 2006, at about 5:45 a.m., a woman was walking in the 6400 block of Georgia Avenue NW when a stranger approached her, brandished a knife and demanded money. The woman told the man she had no money. The man then forced her to the rear of a building in the 5400 block of Georgia Avenue, where he made her lay down in a bed of mulch and raped her. When he finished, the man ordered the victim to walk toward Georgia Avenue NW. She complied, then ran to a gas station and reported that she had just been raped by a stranger at knifepoint. As in the case of the 14-year old girl, semen that was recovered from the victim was shown, through subsequent DNA analysis, to belong to Anthony Burns.
In announcing the plea, U.S. Attorney Machen praised the work of those who investigated the cases for the Metropolitan Police Department, especially the members of MPD’s Sexual Assault Unit and Youth Division. He also commended the efforts of those who worked on the matter from the U.S. Attorney’s Office, including Paralegal Specialist Jason Manuel, Victim/Witness Advocate Lezlie Richardson, and Assistant U.S. Attorneys Sharon Marcus-Kurn and Peter V. Taylor, who investigated and prosecuted this case.
13-146District Man Pleads Guilty to Second-Degree Murder While Armed in 2012 Shooting in Northeast Washington-Defendant Shot Victim in Broad Daylight at A Busy Metro Bus Stop-Read the Press Release
WASHINGTON – Detrek Baker, 24, of Washington, D.C., has pled guilty to a charge of second-degree murder while armed for the April 2012 slaying of a man at a Northeast Washington bus stop, U.S. Attorney Ronald C. Machen Jr. announced today.
Baker entered his plea on April 26, 2013 in the Superior Court of the District of Columbia. The Honorable Herbert B. Dixon, Jr. scheduled sentencing for June 28, 2013.
According to the government’s evidence, on Saturday, April 28, 2012, the victim, James Sherrod, Jr., and a friend, both 22, walked to the U5 Metro bus stop in front of Mayfair Manor, in the 700 block of Kenilworth Terrace NE. Baker, who was carrying a red, black, and grey single-strap book bag, was standing at the bus stop along with several other young men.
For nearly an hour, the victim, Baker, and others stood at the bus stop, talking. At about 1:40 p.m., without provocation or warning, Baker pulled out a gun and shot Mr. Sherrod in the head. When the victim collapsed, Baker stood over him and fired additional bullets into his body.
Immediately after the shooting, Baker ran toward 800 Kenilworth Avenue NE. Eyewitnesses observed him pause beside one of the trash dumpsters there while running away; later they directed the police to those dumpsters. Inside one of the dumpsters was a red, black, and grey single-strap book bag and a .357 revolver. Inside the revolver were five spent casings and one live round. Two bullets were recovered from Mr. Sherrod’s body during an autopsy; police determined that those bullets were fired from the .357 revolver found in the dumpster.
Individuals at the bus stop as well as several members of the community spoke with law enforcement. They reported what they had observed at the bus stop. These eyewitnesses were instrumental not only in helping the police identify Baker as the shooter within hours of the murder, but also in strengthening the evidence against him, ultimately resulting his guilty plea.
In accepting the defendant’s guilty plea, Judge Dixon asked the defendant why he shot Mr. Sherrod. Baker admitted that there was no ongoing hostility or “beef” between him and the victim; rather, he simply stated that he shot the victim because he “did not like him.”
In announcing the plea, U.S. Attorney Machen praised the work of the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Ethel Gregory, Marian Russell, and Kendra Johnson; Lead Paralegal Specialist Sharon Newman; Victim/Witness Advocate Marcia Rinker, and Intelligence Specialists Lawrence Grasso, Shannon Alexis, Sharon Johnson, and William Hamann. Finally, U.S. Attorney Machen recognized former Assistant U.S. Attorney J.P. Cooney and Assistant U.S. Attorney Kimberley Nielsen, who investigated and prosecuted the case.
13-147District Man Pleads Guilty to Felony Charge in Sexual Assault of Young Male Relative-One Attack Took Place in 2008 at Defendant’s Place of Employment-Read the Press Release
WASHINGTON - A 48-year-old man pled guilty today to one count of attempted first-degree child sexual abuse for sexually assaulting a young male relative in 2008, U.S. Attorney Ronald C. Machen Jr. announced.
The defendant, of Laurel, Md., is not identified here to protect the privacy of his victim. He entered the plea in the Superior Court of the District of Columbia. The Honorable Robert E. Morin scheduled sentencing for July 12, 2013. The defendant faces up to 15 years in prison.
According to the government’s evidence, the defendant repeatedly sexually abused the victim in 2008, when the child was 9 or 10 years old. One of the sexual assaults took place at the defendant’s place of employment in Washington, D.C. In May of 2009, the victim reported the abuse to his mother and then to law enforcement.
In announcing the plea, U.S. Attorney Machen expressed his appreciation to the Metropolitan Police Department, Youth Investigations Unit. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Donhue Griffith, Victim/Witness Advocate Melissa Milam, and the Litigation Support Unit, including Paul Howell. He acknowledged the outstanding work of the Children’s Advocacy Center and specifically, Karen Giannakoulias, who provided critical services and treatment to the victim. Finally, U.S. Attorney Machen praised the work of Assistant U.S. Attorney Lindsay Suttenberg, who indicted the case.
13-149District Man Found Guilty of First-Degree Murder While Armed and Other Charges in Shooting That Killed One Teenager and Wounded Another in Northwest Washington-Attack Took Place on Memorial Day of 2011-Read the Press Release
WASHINGTON - Eugene A. Kelly, 28, of Washington, D.C., was found guilty by a jury today of first-degree murder while armed, assault with intent to kill while armed, and related charges for the shooting of two teenagers in Northwest Washington on Memorial Day of 2011, U.S. Attorney Ronald C. Machen Jr. announced.
The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Herbert B. Dixon, Jr. scheduled sentencing for Aug. 6, 2013.
According to the government’s evidence, on May 30, 2011, at about 10:15 p.m., the victims, two 15-year-old boys, were walking home in the 1400 block of New Jersey Avenue NW. As they were walking, Kelly opened fire and shot both teenagers. Isaiah Harris was killed by a single gunshot wound to his body. The surviving victim was shot in the leg.
Just before the shooting, Kelly, who was riding a small trick bike, had stopped to talk to a neighborhood acquaintance. The defendant mentioned his brother’s 2008 murder, and stated his belief that someone from the nearby 5th and O Streets neighborhood was responsible. Kelly announced that someone was going to pay for his brother’s murder, and said that he was going to retrieve a gun. He then retrieved a gun by a nearby dumpster and rode east on P Street toward New Jersey Avenue. Seconds later, the defendant fired multiple times, targeting the two teens.
The victims did not know Kelly and had no knowledge of or involvement in the 2008 murder of his brother. They were simply walking from the area of 5th and O Streets NW.
During a search warrant of the defendant’s home two days later, law enforcement officers found a small trick bike that matched the witnesses’ descriptions of the bike used by the shooter, as well as ammunition consistent with the type used in the murder.
Finally, on Sept. 14, 2011, a guard at the District of Columbia Jail found a note taken from an inmate during a routine morning check. The note, signed by Kelly with his jail identification number, provided a witness’s name and address, and identified members of the witness’s family. A handwriting expert from the FBI concluded that Kelly wrote the note.
In announcing the verdicts, U.S. Attorney Machen commended the work of the Metropolitan Police Department, the FBI, and the District of Columbia Department of Forensic Sciences, which were involved in the investigation and prosecution of this case. U.S. Attorney Machen also expressed appreciation to Paralegal Specialists Kelly Blakeney and Ethel Noble, Victim /Witness Advocate Marcia Rinker, Supervisory Litigation Technology Specialist Joseph Calvarese, Assistant U.S. Attorney Michael Ortwein, who indicted the case, and Assistant U.S. Attorneys Jennifer A. Kerkhoff and Holly R. Shick, who tried the case.
13-151Dickinson Man Sentenced for Sexual Exploitation of MinorsRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on April 29, 2013, James O. Thompson, 41, Dickinson, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of sexual exploitation of minors. Thompson pleaded guilty to the charge on Jan. 10, 2013.
Judge Hovland sentenced Thompson to 25 years in federal prison, to be followed by a lifetime term of supervised release. Thompson was ordered to register as a sex offender.
Thompson was originally convicted in North Dakota for Gross Sexual Imposition in 1999. As a result of that conviction, Thompson was required to register as a sex offender. On Sept. 17, 2011, Thompson was arrested by state authorities for failure to register as a sex offender. During his arrest he was found in possession of a smart phone, which after search subsequent to arrest was found to contain numerous obscene images of a minor female. An investigation then revealed that from May 2011 through Sept. 2011 Thompson developed a relationship with a juvenile through text messaging. It was discovered that Thompson first met the juvenile at a fast food restaurant where he was employed and she was a customer and Thompson then contacted the juvenile, portraying himself as a like aged juvenile male, and he requested the juvenile send sexually explicit photos of herself to him.
The investigation was initiated by the North Dakota Internet Crimes Against Children Task Force and was a cooperative effort of Homeland Security Investigations, the North Dakota Bureau of Criminal Investigation, the North Dakota Parole & Probation Office, the Bismarck Police Department, with the assistance of the Burleigh County State’s Attorney’s Office.
This case was brought as a 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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Assistant U.S. Attorney Gary Delorme prosecuted the case.
Devils Lake Woman Sentenced on Federal Drug ChargeRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on April 29, 2013, Ashley Lenoir of Devils Lake, N.D., was sentenced before U.S. District Judge Ralph R. Erickson on a charge of distribution of a controlled substance.
Judge Erickson sentenced Lenoir to five months’ imprisonment and five months of community confinement to be followed by three years of supervised release. Lenoir was ordered to pay a $100 special assessment to the Crime Victim's Fund.
Lenoir, 31, pleaded guilty on Feb. 5, 2013, to selling methamphetamine, a Schedule II controlled substance, on the Spirit Lake Indian Reservation. The incident occurred on Aug.15, 2011.
The case was investigated by the Bureau of Indian Affairs and the Drug Enforcement Administration.
Assistant U.S. Attorney Janice M. Morley prosecuted the case.
Devils Lake Man Sentenced for Striking, Beating and WoundingRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on April 29, 2013, Zev Boyd Rush of Devils Lake, N.D., was sentenced before U.S. District Judge Ralph R. Erickson on a charge of striking, beating and wounding.
Judge Erickson sentenced Rush to two months’ imprisonment and four months of electronic monitoring to be followed by one year of supervised release. Rush was ordered to pay restitution in the amount of $1,355 and to pay a $10 special assessment to the Crime Victim's Fund.
Rush, 33, pleaded guilty on Feb. 4, 2013, to assaulting the victim with a black metal collapsible baton causing numerous contusions to the victim’s arms and leg. The incident occurred on Oct. 26, 2010, on the Spirit Lake Indian Reservation.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Assistant U.S. Attorney Janice M. Morley prosecuted the case.
Dallas County Man Arrested and Charged in $3.5 Million Staged Accident Fraud SchemeRead the Press Release
DALLAS — Leroy Nelson, 61, of Duncanville, Texas, was arrested this morning by federal agents on felony charges, outlined in an indictment returned by a federal grand jury in Dallas last week and unsealed today, stemming from his alleged role in a multi-million dollar staged accident fraud scheme. Nelson made his initial appearance this afternoon before U.S. Magistrate Judge Irma C. Ramirez, who ordered him detained pending a detention hearing set for Wednesday at 2:00 p.m. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, the indictment charges Nelson with six counts of mail fraud and six counts of engaging in illegal monetary transactions.
The indictment alleges that from at least 2005, Nelson, aided and abetted by others, devised a scheme to defraud multiple insurance companies by submitting false claims for fictitious automobile accidents. As part of the scheme, Nelson promised cash payments to individuals he recruited for them to falsely report to their automobile insurance company that, while driving, they damaged a piece of equipment that was on the road or that was being hauled by a trailer. Nelson provided scripts to these individuals that instructed them on how to report the damage to their insurance company.
Nelson fabricated the written claims and submitted them to insurance companies. The damaged equipment was described as very technical in nature, such as: a “Remote Aircraft Landing Marker,” a “chemical Pipeline Examiner” or a “Seismographic Probe.” The claims would include a fictitious repair estimate and a photograph of the equipment. The claimed repair expenses would usually be from $16,000 to $19,000.
When insurance companies paid the claims, checks would be mailed to an address that Nelson provided. He directed the insurance companies’ checks to either warehouses he owned in Duncanville or to private mail boxes he had opened in Minnesota, Missouri, Mississippi, Washington, Arizona, Connecticut and Louisiana. After establishing the mail boxes, Nelson directed that the mail be forwarded to his address on Explorer Street in Duncanville.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each of the mail fraud counts carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine; each of the engaging in an illegal monetary transaction counts carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. In addition, restitution could be ordered. The indictment also includes a forfeiture allegation, which would require Nelson, upon conviction, to forfeit to the government proceeds traceable to the property as well as seven vehicles, including two Mercedes, a motor home, a boat and his residence on Explorer Road in Duncanville.
The investigation is being conducted by the FBI, Internal Revenue Service Criminal Investigation and the U.S. Postal Inspection Service. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.
Crownpoint Man Pleads Guilty to Federal Aggravated Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Justin Kenneth, 20, a member and resident of the Navajo Nation, pleaded guilty last Thursday to an aggravated sexual abuse charge under a plea agreement with the U.S. Attorney’s Office. Under the terms of the plea agreement, Kenneth will be sentenced to a federal prison term of eight to ten years followed by a term of supervised release of five years to life to be determined by the court. Kenneth also will be required to register as a sex offender.
Kenneth was arrested in Dec. 2010, on a criminal complaint alleging that he sexually abused a child under the age of 12 in Oct. 2010, on the Navajo Indian Reservation. During his plea hearing, Kenneth entered a guilty plea to a felony information charging him with aggravated sexual abuse and admitted sexually abusing the child victim by touching the child’s genitals. Kenneth further admitted that he committed this crime on Oct. 6, 2010, at a residence located on the Navajo Indian Reservation.
Kenneth 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 Gallup office of the FBI and the Crownpoint office of the Navajo Division of Public Safety. Assistant U.S. Attorney Jacob A. Wishard is prosecuting the case 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/.Crestwood Official Convicted of Falsifying Reports to Conceal Village’s Use of Well in Drinking Water SupplyRead the Press Release
CHICAGO — A former water department official for the southwest suburban Village of Crestwood was convicted today of lying repeatedly to environmental regulators for more than 20 years about using a water well to supplement the village’s drinking water supply from Lake Michigan. The defendant, THERESA NEUBAUER, former water department clerk and supervisor and currently Crestwood’s police chief on leave, was found guilty of all 11counts of making false statements by a federal jury after a week-long trial.
Neubauer, 55, of Crestwood, faces a maximum sentence of five years in prison and a $250,000 fine on each count. U.S. District Judge Joan Gottschall set sentencing tentatively for Oct. 2. A co-defendant, FRANK SCACCIA, 61, of Crestwood, the village’s retired certified water operator, pleaded guilty on April 11 to making false statements and is also awaiting sentencing. Neubauer concealed the village’s use of its well from the government and the citizens of Crestwood to save money, prosecutors argued to the jury. By doing so, the village didn’t have to fix its leaking water distribution system, pay the neighboring Village of Alsip more money for water drawn from Lake Michigan, and properly monitor for contaminants that could have been introduced to Crestwood’s water supply.
“Nobody really knows what was in the water for all those years because [Neubauer’s] lies defeated testing,” Assistant U.S. Attorney Timothy Chapman said in his closing argument.
The charges did not allege, and the trial did not seek to establish, that the defendants’ false statements in regulatory reports concealing the use of well water resulted in any harm to Crestwood’s nearly 11,000 residents or to the environment, but the concealment avoided regulations requiring that Crestwood test its commingled water supply and monitor the amount of certain contaminants.
“The charges in this case are seemingly technical reporting violations. But the lies in those reports evidenced a calloused disregard for the welfare and safety of the citizens of Crestwood by their public officials. The decades’ long scheme proved at trial through the efforts of special agents of the U.S. EPA is a disheartening reminder of what can happen when public officials and employees put their own interests ahead of the people they were supposed to serve,” said Gary S. Shapiro, United States Attorney for the Northern District of Illinois.
“Neubauer lied about the true source of the village’s drinking water and for years submitted false documents to cover up the fact that the residents of Crestwood were drinking water from a well that was not properly tested,” said Randall Ashe, Special Agent-in-Charge of the U.S. Environmental Protection Agency’s Office of Criminal Enforcement in Chicago.
According to the evidence at trial, since at least 1973, the substantial majority of Crestwood’s drinking water came from Lake Michigan and was purchased from neighboring Alsip, which, in turn, had purchased the water from the City of Chicago after it was treated and tested pursuant to state and federal environmental regulations. Since 1982, Crestwood regularly supplemented the Lake Michigan water with water drawn from an underground aquifer through a well located on Playfield Drive, known as Well #1. Crestwood found it necessary to supplement the Lake Michigan water with water pumped from Well #1, in part, because of substantial leakage in its water distribution system, which Crestwood officials failed to adequately repair.
Between 1987 and 2008, Neubauer schemed with others to conceal that Crestwood was supplementing its Lake Michigan water with water drawn from Well #1. She helped prepare and submit various false reports stating that Well #1 was on standby status and no water from the well was distributed to Crestwood’s drinking water customers, and also stating that the sole source of Crestwood’s drinking water was Lake Michigan water purchased from Alsip. The false statements were contained in annual Consumer Confidence Reports (CCRs) and Monthly Operation and Chemical Analysis Reports (MORs).
The trial evidence showed that Neubauer was part of a scheme involving a small circle of trusted village employees, including Scaccia, that were directed by Crestwood’s longtime former mayor, Chester Stranczek, who was not charged.
Under the federal Safe Drinking Water Act of 1974, the U.S. Environmental Protection Agency created regulations to ensure the safety of drinking water distributed by public water systems by requiring testing and establishing maximum contaminant levels for various contaminants. The EPA delegated the primary responsibility for enforcement to the Illinois Environmental Protection Agency, which established its own state regulations that implemented the federal statute and regulations.
Because the City of Chicago tested and treated Lake Michigan water for contaminants, Crestwood, like other municipalities that purchased water directly or indirectly from Chicago, was excused from monitoring its Lake Michigan water for certain contaminants. Due to Crestwood’s use of Well #1, however, the village was required to periodically monitor its drinking water for organic contaminants, inorganic contaminants, and radiological contaminants beginning in the 1970s.
Crestwood was also required to submit an Annual Water Use Audit form, known as an LMO-2 form, to the Illinois Department of Natural Resources and, previously, to the Illinois Department of Transportation. This form required Crestwood to report the amount of water it had drawn from Lake Michigan and from Well #1, and to account for the amount of water distributed and lost by its water system annually. From at least 1982 to 2008, Crestwood officials filed LMO-2 forms that neither reported the amount of water drawn from Well #1, nor accurately accounted for the amount of water distributed and lost by its water system.
Scaccia was responsible for ensuring that water distributed by Crestwood met all federal and state regulations, including filing annual CCRs; obtaining the raw data that was used to complete the MORs; transmitting raw data for the MORs to Neubauer so that she could complete them and submit them to the IEPA; and serving as a point of contact for IEPA with respect to drinking water compliance issues. Neubauer prepared the CCRs for signature by Stranczek, arranged for the CCRs to be issued to Crestwood’s water customers, prepared MORs for distribution to the IEPA based upon information obtained from Scaccia, and distributed completed MORs to IEPA. All the while, Neubauer and Scaccia knew that water pumped from Well #1 was being distributed to the village’s water customers.
The government is being represented by Assistant U.S. Attorneys Erika Csicsila and Timothy Chapman.
Counterfeiting, Fraud and Drugs Earn Colorado Man 51 Months in Federal PrisonRead the Press Release
BOISE – Jeffrey Eugene Barfield, 50, of Thornton, Colorado, was sentenced today to 51 months in prison for mail fraud, dealing in counterfeit United States currency, and distributing oxycodone, U.S. Attorney Wendy J. Olson announced. U.S. District Judge John C. Coughenour also ordered Barfield to serve five years of supervised release following his prison term, pay $13,565 in restitution, and forfeit $4,000 of criminal proceeds and all property used to facilitate the crimes. Barfield pleaded guilty to the charges in December 2012.
According to the plea agreement, while serving a prison sentence in Colorado in January 2011, Barfield began planning a counterfeiting operation involving the trade of counterfeit United States currency for true currency, illegal drugs and firearms. As part of the scheme, Barfield planned to manufacture the fake money and sell it to another person. Upon his release from prison and over the course of nearly six months, Barfield manufactured and sold $10,200 in counterfeit money. He delivered the fake money and 50 oxycodone pills across state lines to Idaho via the United States Postal Service. The person receiving the contraband reported it to law enforcement.
Barfield was arrested by state law enforcement officers in June 2012 for passing counterfeit bills at garage sales in Northglenn, Colorado. After being advised of his rights, Barfield told a United States Secret Service agent, “It was good for a long time but it's over; I did it, I made it, and [an accomplice] and I spent them.” Barfield admitted to manufacturing the counterfeit Federal Reserve Notes he passed at the garage sales, as well as the counterfeit Federal Reserve Notes he mailed across state lines. Barfield further described how he and an accomplice passed multiple counterfeit bills throughout the Denver area, by purchasing items at local Home Depot and Lowe’s Home Improvement stores, which they would then return for genuine cash. Barfield admitted that he and an accomplice would “hit” one to two stores per day approximately one to two times per week.
The case was investigated by the United States Secret Service, the Federal Bureau of Investigation, and United States Postal Inspection Service.
Coraopolis Man Charged with Possession of Child PornographyRead the Press Release
PITTSBURGH - A resident of Allegheny County was indicted on April 24, 2013, by a federal grand jury in Pittsburgh on a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The one-count indictment, unsealed today, named Daniel Lewis Dolde, 43, of Coraopolis, Pa., as the sole defendant.
According to the indictment, on or about May 10, 2012, Dolde possessed visual depictions, namely, videos and images in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Department of Homeland Security - Homeland Security Investigations conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.