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11 June 2013
Wyoming Woman Charged with Conversion of Moneys from an Indian Tribal OrganizationRead the Press Release
United States Attorney Christopher A. Crofts announced today that Joanne Lynn Seesequasis, the former executive director for the Eastern Shoshone Housing Authority, appeared in federal court on June 10, 2013, for an arraignment. Ms. Seesequasis appeared with counsel and pled not guilty to the indictment charging conversion of moneys from an Indian Tribal organization, in violation 18 U.S.C. §1163. Ms. Seesequasis’ trial will be held on August 19, 2013, in Cheyenne, Wyoming before Chief United States District Court Judge Nancy Freudenthal. This case is being investigated by the Federal Bureau of Investigation and the Office of Inspector General.
An indictment is only an accusation. In every criminal case, the accused is presumed to be innocent until proven guilty, and the government always has the burden of proving guilt at trial beyond a reasonable doubt.Wilmington Collector of Child Pornography Sentenced to 151 Months ImprisonmentRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today LONNE BALOG, 43, was sentenced by Chief Federal District Court Judge James C. Dever to 151 months imprisonment and 20 years of supervised release for receipt of child pornography.
During the course of an investigation of online trafficking in child pornography, law enforcement identified BALOG as an individual using peer-to-peer technologies to obtain child pornography and to make such materials available to others. After an undercover investigator downloaded child pornography images from BALOG’s computer, a search warrant was executed at his Wilmington home in June of 2012 by the New Hanover County Sheriff’s Office, the North Carolina State Bureau of Investigation, and the FBI. BALOG admitted to frequent downloading of child pornography, and forensic examiners determined that BALOG had accumulated over 4,000 still images and over 600 videos depicting the sexual abuse of children.
United States Attorney Thomas Walker stated, “This case is a good example that prosecutors and investigators at every level successfully work together to make the Eastern District of North Carolina a safer place for our children.”
This case was 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. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Investigation of this case was conducted by the New Hanover County Sheriff’s Office, the North Carolina State Bureau of Investigation, and the FBI. Prosecution was coordinated with the New Hanover County District Attorney’s Office. Assistant United States Attorney Jay Exum prosecuted the case for the United States.
Wichita Man Sentenced to 19+ Years in Valley Center Bank RobberyRead the Press Release
WICHITA, KAN. – A Wichita man has been sentenced to federal prison after pleading guilty to a 2012 robbery at the Intrust Bank in Valley Center, Kan., U.S. Attorney Barry Grissom said today.
Terry G. Revels, 50, Wichita, Kan., was sentenced to 19 years and seven months in federal prison. He pleaded guilty to one count of bank robbery.
During the sentencing hearing, prosecutors told the judge that Revels and three other defendants took part in the Oct. 18, 2012, robbery of the Intrust Bank at 142 North Ash in Valley Center, Kan. Revels and one of the co-defendants entered the bank, vaulted the counter and demanded money. Two of the other co-defendants remained outside in a car, acting as lookouts.
After the robbery, a Valley Center police officer stopped Revels and two co-defendants in a white Cadillac. The defendants fled on foot. Revels entered a home in the area, tied up a 15-year-old boy and took his cell phone. Revels later was arrested hiding in a truck.
Co-defendants are: – Henry J. Adams, III, who pleaded guilty and is set for sentencing Aug. 5.
– Dlaney M. Nixon, who is awaiting trial.
– Veronica K. Johnson, who pleaded guilty and is set for sentencing June 12.Grissom commended the agencies that took part in the investigation including the FBI, the Sedgwick County Sheriff’s Office, the Valley Center Police Department, the Wichita Police Department, the Kansas Highway Patrol, the Park City Police Department, the Maize Police Department, the Kechi Police Department, the Haysville Police Department, the Colwich Police Department, the Andale Police Department, the Mount Hope Police Department and the State Parole Office, as well as Assistant U.S. Attorney David Lind, who prosecuted the case.
Wheeling Residents Indicted on 22 Counts of Heroin and Cocaine TraffickingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Government seeks forfeiture of home where drugs allegedly sold
WHEELING, WV – Four Wheeling residents have been charged in a twenty-two count indictment with the trafficking of heroin and cocaine in the Wheeling area.
According to U.S. Attorney William Ihlenfeld, II, the following individuals have been charged in federal court with “Conspiracy to Distribute Cocaine Base and Heroin” from November of 2012 to January of 2013: Deon Young, age 29; Megan Brak, age 26; Solomon Sims, age 56; and Carlos Moore a/k/a “Los”, age 27.
Young faces a total of twenty-one counts, Sims faces three counts, and Brak and Moore face two counts each. In addition to the conspiracy charge, other charges include the distribution of cocaine and heroin, the distribution of cocaine within 1,000 feet of the Bridge Park Playground, the maintaining of a drug-involved premise, and the use of a telephone to aid in the distribution of cocaine and heroin.
The U.S. Attorney’s Office is seeking to forfeit a home located at 319 North Huron Street because the home is believed to have been used to facilitate the commission of drug trafficking.
Each defendant faces up to twenty years in prison on the conspiracy, distribution, and maintaining a drug-involved premise charges, up to forty years in prison on the sales that occurred near the playground, and up to four years in prison on the telephone counts.
This case will be prosecuted by Assistant United States Attorney Randolph J. Bernard.
The investigation was conducted by the Ohio Valley Drug Task Force, which is comprised of officers and agents from the West Virginia State Police-BCI, the Wheeling Police Department, the Ohio County Sheriff’s Department, and the Drug Enforcement Administration.
All of the charges contained in the indictment are merely accusations and not evidence of guilt. Each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Walgreens Agrees to Pay A Record Settlement of $80 Million for Civil Penalties Under the Controlled Substances ActRead the Press Release
Largest Fine Paid by a DEA Registrant
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, announced that Walgreens Corporation (Walgreens), the nation’s largest drug store chain, has agreed to pay $80 million in civil penalties, resolving the DEA’s administrative actions and the United States Attorney’s Office’s civil penalty investigation regarding the Walgreens Jupiter Distribution Center and six Walgreens retail pharmacies (collectively “Registrants”) in Florida. The settlement further resolves open civil investigations in the District of Colorado, Eastern District of Michigan, and Eastern District of New York, as well as civil investigations by DEA field offices nationwide, pursuant to the Controlled Substances Act (the Act).
The settlement, the largest in DEA history, resolves allegations that the Registrants committed an unprecedented number of record-keeping and dispensing violations under the Act. According to documents filed in the underlying administrative actions, the Registrants negligently allowed controlled substances listed in Schedules II – V of the Act, such as oxycodone and other prescription pain killers, to be diverted for abuse and illegal black market sales.
According to the most recent report from the U.S. Center for Disease Control and Prevention, prescription drug overdose deaths exceeded motor vehicle deaths and deaths from illegal street drugs, such as cocaine, heroin, and amphetamines in 2009. Oxycodone is a powerful addictive narcotic that is one of the most abused prescription medications in Florida and throughout the United States. Walgreens’ Distribution Center in Jupiter, Florida was the largest supplier of oxycodone to retail pharmacies in the State of Florida.
U.S. Attorney Wifredo A. Ferrer stated, “Prescription drug abuse is a tremendous problem in Florida and throughout the country. Every day, individuals die from prescription drug overdoses. The record-keeping requirements of the Controlled Substances Act and DEA regulations are designed to prevent prescription pain killers, like oxycodone, from ending up on our streets. For this reason, we cannot allow pharmacies to circumvent their regulatory record-keeping and dispensing obligations.”
DEA Special Agent in Charge Mark R. Trouville stated, “National pharmaceutical chains are not exempt from following the law. This settlement sends out a clear message that all DEA registrants will be held accountable when they violate the law and threaten public health and safety. The DEA will continue its efforts to work with our registrants and our law enforcement partners to combat pharmaceutical drug abuse and diversion in Florida.”
The settlement agreement covers conduct that was the subject of DEA’s administrative actions and the U.S. Attorney’s Office civil penalty investigation. More specifically, the settlement covers allegations against Walgreens’ Jupiter Distribution Center and six Walgreens’ retail pharmacies. First, the Jupiter Distribution Center failed to comply with DEA regulations that required it to report to the DEA suspicious prescription drug orders that it received from Walgreens’ retail pharmacies. Walgreens’ alleged failure to sufficiently report suspicious orders was a systematic practice that resulted in at least tens of thousands of violations and allowed Walgreens’ retail pharmacies to order and receive at least three times the Florida average for drugs such as oxycodone.
Second, the six retail pharmacies in Florida that received the suspicious drug shipments from the Jupiter Distribution Center, in turn, filled customer prescriptions that they knew or should have known were not for legitimate medical use. In addition, these retail pharmacies and others elsewhere in the United States failed to properly identify and mark, as required by DEA regulations, hardcopy controlled substance prescriptions that were outsourced to a “central fill” pharmacy for filling. Without Walgreens’ retail pharmacies identifying these outsourced prescriptions, DEA could not accurately determine which prescriptions were filled from the retail pharmacies’ own drug supplies and which prescriptions were filled by a “central fill.” Consequently, DEA could not determine the accuracy of the retail pharmacies’ drug records. The DEA’s administrative actions demonstrated millions of violations of this type.
In addition to the $80 million civil penalty for the above violations, Walgreens agreed to surrender the Registrants’ ability to distribute or dispense controlled substances listed in Schedules II – V for two years, ending in 2014. As part of the settlement, Walgreens admitted that it failed to uphold its obligations as a DEA registrant regarding the above-described conduct. Furthermore, Walgreens has agreed to create a Department of Pharmaceutical Integrity to ensure regulatory compliance and prevent the diversion of controlled substances. Walgreens has also agreed to enhance its training and compliance programs, and to no longer monetarily or otherwise compensate its pharmacists based on the volume of prescriptions filled.
Since 2009, the DEA, along with its federal, state, and local counterparts, have partnered to combat the prescription drug abuse epidemic that has plagued Florida, culminating in Operation Pill Nation I and II and Operation Oxy Alley. These investigations have resulted in charges against more than 172 individuals, including 51 doctors and 24 clinic/pharmacy owners, the seizure of approximately 2.5 million dosage units of controlled substances, approximately $16.6 million, real property, and exotic cars. In addition, approximately 42 doctors and 11 pharmacies have lost their DEA registrations through the issuance of Immediate Suspension Orders. As well, approximately 192 doctors and 68 pharmacies have voluntarily surrendered their DEA registrations following an official visit from the DEA. Lastly, DEA has also taken action against seven other Florida-based distributors.
This investigation was conducted by the DEA’s Miami Field Office and the U.S. Attorney’s Office for the Southern District of Florida, with the assistance of DEA’s Office of Chief Counsel.
Mr. Ferrer thanked U.S. Attorney for the District of Colorado, John Walsh, U.S. Attorney for the Eastern District of Michigan, Barbara L. McQuade, and U.S. Attorney for the Eastern District of New York, Loretta E. Lynch, for their cooperation in this case. Mr. Ferrer also commended the investigative work of the DEA’s Miami Field Office, as well as its DEA counterparts throughout the country for their work and assistance in this matter.
The civil penalty case was investigated and negotiated by Assistant U.S. Attorney Franklin Monsour of the U.S. Attorney’s Office for the Southern District of Florida. The administrative case was principally negotiated by Lee Reeves, Associate Chief Counsel for DEA’s Diversion and Regulatory Litigation Section, and also by Scott Lawson, who acted as lead trial counsel for the DEA in the administrative actions.
Attachment:
Walgreens MOA & Addendum (PDF)
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
VA Worker Made False Document Claiming Deployment, Then Collected Active Duty PayRead the Press Release
PITTSBURGH, Pa. - A resident of Washington County, Pa., pleaded guilty in federal court to charges of theft of government money and making a false document, United States Attorney David J. Hickton announced today.
Richard A. Ward, 42, pleaded guilty to two counts before United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that Ward, while a VA Pittsburgh Healthcare System employee, submitted to the VA a false and fictitious Special Order drawn on the authority of the Department of the Air Force, Pennsylvania Air National Guard 171st Air Refueling Wing. The false Special Order indicated that Ward, who is also a Pennsylvania Air National Guardsman, was deployed for active duty. The VA placed Ward in a special pay status for VA employees who are activated for military duty. The pay and benefits wrongfully obtained by Ward equaled approximately $14,164.91.
The law provides for a maximum total sentence of not more than 15 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentence, the court placed Ward on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Department of Veterans Affairs Office of Inspector General, and the United States Department of Veterans Affairs Police, conducted the investigation leading to the information in this case.
Two Sentenced for Port Arthur Drug DealRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – Two men have been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Juan Carlos Chavez-Delgado, 30, of Houston, and Alvaro Humberto Jimenez, 57, of Mission, Texas, pleaded guilty in February 2013, to possession with intent to distribute more than 50 grams of methamphetamine and were sentenced today by U.S. District Judge Marcia Crone. Chavez received a sentence of 95 months in federal prison and Jimenez was sentenced to 51 months.
According to information presented in court, on Nov. 13, 2012, Chavez and Jimenez were arrested in the parking lot of Central Mall in Port Arthur, Texas, as they were completing a drug transaction involving a half kilogram of methamphetamine for $11,500. Further investigation revealed Chavez arranged the drug transaction and paid Jimenez to drive him from Houston to Port Arthur. The defendants were indicted by a federal grand jury on Dec. 5, 2012.
This case was prosecuted as part of Project Safe Neighborhoods' Operation Time Machine program. Operation Time Machine is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in Port Arthur, Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the U.S. Drug Enforcement Administration, the Port Arthur Police Department and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Baylor Wortham.Two Plead Guilty in Scheme to Steal MailRead the Press Release
LYNCHBURG, VIRGINIA -- A pair of North Carolina men pled guilty this morning in the United States District Court for the Western District of Virginia in Lynchburg to charges that they stole checks from mailboxes throughout Central Virginia, altered the checks and cashed them for their personal use.
Getony Barnette, 28, of Charlotte, N.C. and Jeremy Brown, 29, also of Charlotte, N.C., both pled guilty this morning. Brown pled guilty to one count of conspiracy to commit bank fraud and identity fraud. Barnette pled guilty to one count of conspiracy to commit bank fraud, mail theft and identity fraud and one count of aggravated identity fraud.
“These defendants stole checks sent through the mail, altered them, then attempted to cash the checks at local businesses," United States Attorney Timothy J. Heaphy said today. “This simple fraud scheme had a tremendous impact on the individuals whose checks were stolen. We will do all we can to make these victims whole, and to protect the safety and integrity of the U.S. Mail."
According to a statement of facts filed today and agreed to by the defendants, Barnette, Brown, and others, traveled from Charlotte, N.C. to the Western District of Virginia in order to steal mail containing checks, alter those checks and convert the money for their personal use. The pair admitted to stealing checks from mailboxes, scratching off the addressee’s name, and sometimes the amount the check was written for, and making the checks out to “check cashers” who were then paid to go cash the checks at local banks. The checks were cashed throughout Central Virginia, including in Salem, Roanoke, Lynchburg, Bedford County, Blacksburg and Christiansburg. In all, more than $300,000 was stolen.
The investigation of the case was conducted by the United States Postal Inspection Service, the Lynchburg Police Department, the Roanoke Police Department, the Bedford County Sheriff’s Office, the Salem Police Department, the Christiansburg Police Department and the Blacksburg Police Department. Assistant United States Attorney C. Patrick Hogeboom III will prosecute the case for the United States.Tohajiilee Man Sentenced to Ten Years in Federal Prison for Child Sex Abuse ConvictionRead the Press Release
ALBUQUERQUE – Nathan R. Platero, 41, an enrolled member of the Navajo Nation who resides in Tohajiilee, N.M., was sentenced this morning to ten years in federal prison followed by ten years of supervised release for his child sex abuse conviction. Platero will be required to register as a sex offender after he completes his prison sentence.
Platero was arrested in Jan. 2012, on child sex abuse charges. In Oct. 2012, Platero pleaded guilty to a felony information and admitted that, between Jan. 2005 through Dec. 2006, he engaged in and attempted to engage in sexual contact with a child victim who had attained the age of 12 but had not attained the age of 16. Platero further admitted that the sexual contact consisted of the intentional touching of the child victim’s genitals through her clothing. Court records reflect that the offense occurred in Platero’s residence in Tohajiillee, which is on the Navajo Indian Reservation.
This case was investigated by the Albuquerque Division of the FBI and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback 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/.
Ten Arrested in an Alleged Drug Distribution Conspiracy in Riverdale, Prince George’s CountyRead the Press Release
Greenbelt, Maryland – Nine federal defendants and a one state defendant were arrested today, on charges related to a conspiracy to distribute cocaine, crack cocaine and phencyclidine (PCP), in the Riverdale area of Prince George’s County, Maryland. More than 160 law enforcement officers, led by the Bureau of Alcohol, Tobacco, Firearms and Explosives, participated in the arrest of the 10 defendants and the execution of six search warrants. The two related federal indictments were returned on June 5, 2013, and unsealed today upon the arrest of the defendants.
The indictments were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
Special Agent in Charge Steven L. Gerido of the ATF - Baltimore Field Division said, “I am confident that ATF’s successful execution of ten arrest warrants and six search warrants made a significant impact on crime in Prince George’s County, Maryland and specifically the Riverdale community. ATF continues to work with its federal, state, and local law enforcement partners in order to bring violent criminals to justice.”
The six defendants arrested in the first indictment are charged with a conspiracy to distribute cocaine, crack cocaine and PCP in Riverdale from at least 2005 to the present. They are:
Don Juan Campbell, a/k/a “Flav,” “Flava Flav,” and “Flay,”age 32, of Laurel, Maryland;
Andre T. Lyons, a/k/a “Dre,” age 37, of Riverdale;
Michael C. McCree, a/k/a “Cuz,” and “Layhoo,” age 31, of Riverdale;
Lorenzo B. Jackson, a/k/a “B.J.,” age 32, of Riverdale;
Michael I. Waller, a/k/a “Butters,” and “Mike Mike,” age 22, of Beltsville; and
Marcus R. Moss, age 40, of Riverdale.
The indictment alleges that Campbell purchased large quantities of cocaine and PCP from sources in Maryland and elsewhere, which he distributed to other defendants and co-conspirators for further redistribution and sale. The indictment alleges that the conspirators controlled locations in and around Riverdale for the distribution of drugs and collected money owed to members of the conspiracy from drug transactions. The defendants allegedly obtained and utilized cellular telephones in the names of other individuals or businesses, to communicate with other members of the conspiracy without detection by law enforcement officers.
The defendants face a maximum sentence of life in prison.
In a related indictment three defendants were charged with conspiracy to distribute and possess with intent to distribute crack cocaine and PCP from May 2012 to June 2013. They are:
Glen Price, a/k/a “Mynds,” age 34, of Riverdale;
Iziah E. Ennis, a/k/a “Ike,” age 33, of Fairfax, Virginia; and
Kevin L. Dixon, a/k/a “Richie White Bread,” age 34, of Riverdale.
The defendants face a maximum sentence of 40 years in prison.
All the defendants had an initial appearance this afternoon in U.S. District Court in Greenbelt. All of the defendants were detained, except Dixon, who was released under the supervision of U.S. Pretrial Services. The remaining defendants will have detention hearings later this week.
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.
United States Attorney Rod J. Rosenstein praised ATF, Prince George’s County Police Department and the Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Steven E. Swaney, who is prosecuting the federal case.
Tarrant County Men Sentenced in Unrelated Child Pornography CasesRead the Press Release
FORT WORTH, Texas — In U.S. District Court in Fort Worth, Texas, today, U.S. District Judge Terry R. Means sentenced two Tarrant County men to lengthy federal prison sentences following their guilty pleas late last year in separate, unrelated child pornography cases, announced U.S. Attorney Sarah R. Saldaña.
In the first case, Judge Means sentenced David Wayne Hatcher, 42, of Richland Hills, Texas, to 108 months in federal prison following his guilty plea in December 2012 to two counts of possession of child pornography. Judge Means remanded Hatcher, who has been on bond, into custody following the hearing. According to documents filed in the case, when agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a federal search warrant at Hatcher’s home in 2011, they seized computer equipment and related storage media that contained video files of minors engaged in sexually explicit conduct.
In the other case, Judge Means sentenced Kristopher D. King, 25, of Euless, Texas, to 132 months in federal prison, following his guilty plea in November 2012 to one count of transportation of child pornography. King has been in custody since his arrest in September 2012. According to documents filed in the case, when FBI agents executed a federal search warrant at King’s home in 2010, King advised them that he had been using a peer-to-peer file-sharing program to trade files depicting child pornography. A forensic examination of King’s external hard drive revealed videos and images containing visual depictions of minors engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI, the Orange County, Texas Sheriff’s Office and the FBI investigated. Assistant U.S. Attorney Aisha Saleem prosecuted.
St. Thomas Man Arrested and Charged with Using Internet to Coerce and Entice Three Minor GirlsRead the Press Release
St. Thomas Man Arrested and Charged with Using Internet to Coerce and Entice Three Minor Girls St. Thomas, USVI – Tony Jefferson Browne, 30, of St. Thomas was arrested today and charged with using the Internet to coerce and entice three female minors to engage in sexual activity, announced United States Attorney Ronald W. Sharpe.
Browne made his initial appearance in District Court before U.S. Magistrate Judge Ruth Miller, and was ordered held without bail pending a detention and preliminary hearing on June 12, 2013. According to documents filed in District Court, Browne made contact with the minors on Facebook, developed a friendship with them, and then persuaded them to send him nude photos of themselves. After receiving the photos, Browne threatened to place the minors’ nude photos on the Internet if they did not have sex with him.
At the time of the arrest, Browne was a self-employed plumber. If convicted, Browne faces a statutory minimum penalty of 15 years in prison.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney Everard Potter.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children via its toll-free 24-hour hotline at 202-514-5678, or to Homeland Security Investigations at (340) 693-2250.
The public is reminded that a criminal complaint is merely a charging document and is not evidence of guilt. A defendant is presumed innocent until and unless proven guilty.
St. Cloud Man Indicted for Robbing TCF BankRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 36-year-old St. Cloud man was indicted for robbing the TCF Bank located at 1001 Fourth Street in St. Cloud. Fehd El Mehdi Kourima was specifically charged with one count of bank robbery.
The indictment alleges that on May 5, 2013, Kourima stole an undisclosed amount of cash from the bank. According to a law enforcement affidavit filed in the case, a man, later identified as Kourima, entered the bank at approximately 12:30 p.m. He gave a teller a note that stated, “Put as many $100 bills as you can into this envelope in fifteen seconds and no one gets hurt.” After receiving the money, Kourima left the bank and ran to a vehicle parked outside. Kourima was arrested later that day.
If convicted, Kourima faces a potential maximum penalty of 20 years in federal prison. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the St. Cloud Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Katharine T. Buzicky and Nathan P. Petterson.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Shiprock Man Sentenced to Ten Years in Federal Prison for Federal Child Sex Abuse ConvictionRead the Press Release
ALBUQUERQUE – Delbert Begaye, 56, a member of the Navajo Nation who resides in Shiprock, N.M., was sentenced this morning to ten years in federal prison followed by five years of supervised release. Begaye will be required to register as a sex offender after he completes his prison sentence.
Begaye was arrested on a criminal complaint charging him with child sex abuse offenses in Feb. 2012, and has been in federal custody since that time. Begaye pleaded guilty in Sept. 2012 to a felony information charging him with two counts of aggravated sexual abuse of a child under the age of 12.
As to the first count of the information, Begaye’s plea agreement states that between March 1989 and Oct. 1989, Begaye engaged in sexual acts with a child who was approximately ten years of age on approximately six occasions. Begaye admitted that, on each of the six occasions, he forcibly grabbed and carried the child victim into her home where he sexually assaulted her. The child victim did not disclose the assaults because Begaye threatened to physically harm the victim’s sibling. The assaults occurred in Hogsback, N.M., which is located within the Navajo Indian Reservation.
As to the second count, Begaye’s plea agreement states that between Jan. 1991 and Dec. 1995, he engaged in sexual acts with a child who had not attained the age of 12. Begaye admitted that he sexually assaulted the child victim on multiple occasions during this five year period. The assaults occurred in Indian Village, N.M., which is located within the Navajo Indian Reservation.
Begaye’s criminal conduct first came to light in Feb. 2012, when a 32-year-old Navajo woman reported to the FBI and Navajo Nation Division of Public Safety that Begaye had sexually assaulted her in 1989, when she was a child. Subsequent investigation revealed that Begaye also had sexually assaulted a second child victim referred to in the second count of the information.
The case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Niki Tapia-Brito 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/.
San Antonio Man Charged with Domestic Violence Violation for Allegedly Shooting Common-Law Wife on Fort Sam HoustonRead the Press Release
This morning in San Antonio, a federal criminal complaint was filed against 51–year-old Alvin Leon Roundtree of San Antonio alleging domestic violence on Fort Sam Houston announced United States Attorney Robert Pitman, Federal Bureau of Investigation San Antonio Division Special Agent in Charge Armando Fernandez and San Antonio Police Chief William McManus.
According to the criminal complaint, yesterday afternoon Roundtree approached his common-law wife in the A Medical Center and School on Fort Sam Houston to discuss their recent separation. The complaint alleges that after a verbal altercation regarding her decision to leave the defendant, Roundtree pulled out a .45 caliber pistol and shot his common-law wife multiple times.
Authorities subsequently apprehended Roundtree on Fort Sam Houston and recovered the firearm believed to have been used by the defendant to commit the offense. The victim, who according to the criminal complaint identified Roundtree as her assailant, remains in stable condition following surgery at San Antonio Military Medical Center.
Roundtree, who had his Initial Appearance in federal court this morning, remains in federal custody pending a detention hearing at 3:30pm on Thursday before United States Magistrate Judge John Promomo. Upon conviction, Roundtree faces up to 20 years in federal prison and a maximum $250,000 fine.
This case is being investigated by the Federal Bureau of Investigation (FBI) together with the U.S. Army Criminal Investigation Division and the San Antonio Police Department. Assistant United States Attorney Bettina Richardson is prosecuting this case on behalf of the Government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Ross Twp. Man Charged with Cashing Deceased Mother’s Benefit Checks for 40 YearsRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County has been indicted by a federal grand jury in Pittsburgh on a charge of theft of government money, United States Attorney David J. Hickton announced today.
The one-count indictment named Chauncey Clinton, 65, as the sole defendant.
According to indictment, from June 1, 1973, to April 3, 2012, Chauncey Clinton converted to his own use $304,853.00 in Social Security Title II, Old Age, Survivor’s Disability Insurance benefit payments of his mother, Clara Clinton, who died on May 7, 1973, to which benefits he knew he was not entitled.
The law provides for a maximum total sentence of not more than 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 Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General, 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.
Rosebud Woman Charged with Domestic Assault by Habitual Offender and Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota woman has been indicted by a federal grand jury for Domestic Assault by Habitual Offender and Assault with a Dangerous Weapon.
Myra Ree, age 24, was indicted by a federal grand jury on May 15, 2013. She appeared before U.S. Magistrate Judge Mark A. Moreno on June 10, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is up to 10 years in custody, a $250,000 fine, or both; 3 years of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Ree is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Ree was released pending trial. A trial date has not been set.
Red Lake Man Indicted for Sexually Assaulting A WomanRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 24-year-old Red Lake man was indicted for sexually assaulting a woman while on the Red Lake Indian Reservation. Avery Wade Schoenborn was specifically charged with one count of sexual abuse. The indictment alleges that on May 7, 2013, Schoenborn engaged in a sexual act with the victim, who was incapable of declining participation in the act.
If convicted, Schoenborn faces a potential penalty of life in prison. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Clifford B. Wardlaw.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.
The U.S. Justice Department is taking steps to increase engagement, coordination, and action relative to public safety in tribal communities, including the creation of the Violence Against Women Federal and Tribal Prosecution Task Force. This task force explores current issues raised by professionals in the field and recommends “best practices” in prosecution strategies involving domestic violence, sexual assault, and stalking.
Violence against American Indian women occurs at epidemic rates. In 2005, Congress reported that one in three American Indian women is raped during her lifetime, and American Indian women are nearly three times more likely to be battered during their lives as Caucasian women.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Pittsburgh Man Charged with Distributing and Possessing Pornographic Images of MinorsRead the Press Release
PITTSBURGH, Pa. - An Allegheny County man has been indicted by a federal grand jury in Pittsburgh on charges of distribution and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The three-count indictment named Christopher Malinak, 29, as the sole defendant.
According to the indictment, from on or about April 28, 2013, to on or about May 7, 2013, Malinak distributed images containing material depicting the sexual exploitation of minors to an individual located in Madison, Wis. The indictment further alleges that on or about May 1, 2013, Malinak distributed images containing material depicting the sexual exploitation of minors to an individual in Scranton, Pa. Finally, the indictment alleges that on or about May 15, 2013, Malinak possessed visual depictions, namely, images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 50 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Allegheny County District Attorney's Office, Lackawanna County Police Department and Madison, Wisconsin Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty
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.
Pierce County Hard Money Lender Indicted for Conspiracy, False Statements and Mail Fraud in Mortgage Fraud SchemeRead the Press Release
A hard money lender who resides in University Place, Washington was arrested today after being indicted by the grand jury for conspiracy, making false statements on loan applications and mail fraud. EMIEL A. KANDI, 36,was taken into custody by the FBI this morning and will make his initial appearance on the indictment in U.S. District court in Tacoma at 2:30 today.
“The business practices of this defendant harmed individuals who lost their homes. Then the lies told in mortgage documents harmed taxpayer funded institutions such as the Federal Housing Administration,” said U.S. Attorney Jenny A. Durkan. “These mortgage fraud cases result from thorough and intensive investigations. I’m grateful for the hard work of the dedicated agents and investigators working to hold Mr. Kandi accountable.”
According to the indictment, between 2008 and 2009, KANDI submitted false information to obtain home mortgage loans. Some of these loans were designed to let KANDI cash out of properties that KANDI owned through his hard money lending. KANDI’s lending activities were typically secured by a borrower’s home and charged a high rate of interest. The hard money loans were structured, in some instances, to allow KANDI to seize control of a home if the borrower missed a single payment. Other loans included an inflated and often disguised commission payment to KANDI. In at least 19 loans, KANDI and his co-schemers submitted false information regarding the borrowers’ employment, salary, and intention to live in the home. Some of the loan paperwork included inflated appraisals so that KANDI could maximize the money he obtained in the scheme. The false statements were designed to make the loans appear legitimate and ensure that they would meet federal lending standards. Many of the loans were processed by Pierce Commercial Bank and were insured by the Federal Housing Administration (FHA), a unit within the federal Department of Housing and Urban Development (HUD).
The indictment details the false statements that were made in loan applications on properties in Kent, Puyallup, Roy, Gig Harbor and Vancouver, Washington. In one instance detailed in the indictment, the falsified forms were sent to a lender in Texas via U.S. Mail resulting in the charge of mail fraud.
Mail fraud is punishable by up to 20 years in prison and a $250,000 fine. Conspiracy is punishable by up to five years in prison and a $250,000 fine. Making false statements in a loan application is punishable by up to 30 years in prison and a $1 million fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
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.
The case is being investigated by the FBI and the Department of Housing and Urban Development, Office of Inspector General. The case is being prosecuted by Assistant United States Attorney Brian Werner and Special Assistant United States Attorney Hugo Torres. Mr. Torres is a King County Deputy Prosecutor specially funded by the Washington Department of Financial Institutions (DFI) to handle mortgage fraud cases in state and federal court.
Picuris Pueblo Woman Sentenced to Probation for Embezzling $132,000 from Picuris PuebloRead the Press Release
ALBUQUERQUE –Norma Mermejo, 62, a member and resident of Picuris Pueblo, was sentenced this morning to five years of probation for her conviction on an embezzlement and theft from an Indian tribal organization charge. Mermejo also was ordered to pay $132,000 in restitution to Picuris Pueblo.
In Oct. 2012, Mermejo pleaded guilty to embezzling approximately $132,000 belonging to Picuris Pueblo between Feb. 2008 and April 2010. At the time, Mermejo was employed as a file clerk in the Pueblo’s accounting office. Picuris Pueblo terminated her employment in April 2010, when Pueblo officials learned of her unlawful activities. During her plea hearing, Mermejo admitted embezzling an aggregate of $132,000 of funds belonging to Picuris Pueblo on 144 occasions during a two-year period. She also admitted that she used the money to support her gambling habit and make ends meet with regard to such matters as utility bills.
The case was investigated by the FBI and the Northern Pueblos Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Picuris Pueblo Woman Sentenced to Probation for Embezzling $132,000 from Picuris PuebloRead the Press Release
ALBUQUERQUE –Norma Mermejo, 62, a member and resident of Picuris Pueblo, was sentenced this morning to five years of probation for her conviction on an embezzlement and theft from an Indian tribal organization charge. Mermejo also was ordered to pay $132,000 in restitution to Picuris Pueblo.
In Oct. 2012, Mermejo pleaded guilty to embezzling approximately $132,000 belonging to Picuris Pueblo between Feb. 2008 and April 2010. At the time, Mermejo was employed as a file clerk in the Pueblo’s accounting office. Picuris Pueblo terminated her employment in April 2010, when Pueblo officials learned of her unlawful activities. During her plea hearing, Mermejo admitted embezzling an aggregate of $132,000 of funds belonging to Picuris Pueblo on 144 occasions during a two-year period. She also admitted that she used the money to support her gambling habit and make ends meet with regard to such matters as utility bills.
The case was investigated by the FBI and the Northern Pueblos Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Northampton Man Charged with Having Drugs on A Federal InstallationRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that federal charges were filed Monday in Harrisburg against a Northampton, Pennsylvania man for having drugs and drug paraphernalia on a federal installation in New Cumberland, Pennsylvania.
According to United States Attorney Peter J. Smith, Paul Transue, Jr., age 51, was charged with possessing marijuana and cocaine on November 14, 2012 while on the grounds of the Defense Distribution Center Susquehanna (DDCS), New Cumberland. Transue, a civilian contractor, consented to the search of his vehicle after it had been stopped for speeding. A search of his car led to the recovery of cocaine and marijuana as well as a variety of drug use paraphernalia such as glass pipes, rolling papers, a razor blade and a straw. The amount of marijuana and cocaine recovered was consistent with possession for personal use, especially given the fact that paraphernalia for using the drugs was also recovered from Transue’s car.
The investigation was handled by the DDCS Security and Emergency Services. Prosecution has been assigned to Assistant U.S. Attorney William A. Behe.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is one year imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Norfolk Man Sentenced to more than 12 Years Imprisonment for Selling MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that Adrian Barron-Valdez, was sentenced on June 10, 2013, to 151 months in prison by United States District Judge John M. Gerrard. Barron-Valdez had previously pled guilty for his involvement in a conspiracy to distribute multiple ounces of “ice” methamphetamine in the Norfolk, Nebraska, area from March 1, 2011, and continuing to October 24, 2012. Barron-Valdez will be deported after serving his sentence as he was in the country illegally at the time of the offense.
This case was the result of a joint investigation by the Drug Enforcement Administration, the Nebraska State Patrol, and Homeland Security Investigations.
New Hampshire Firearm Purchaser Sentenced to Federal Prison for Providing False Information During the Acquisition of FirearmsRead the Press Release
CONCORD, NH –Ulrick Lucien, 25 was sentenced in United States District Court for the District of New Hampshire to eighteen months in prison for providing false information in connection with the acquisition of three firearms, announced United States Attorney John P. Kacavas.
Lucien, a Massachusetts resident, presented a false New Hampshire address in order to purchase three firearms from a federally licensed firearms dealer in Manchester, New Hampshire. He was indicted and charged with one count of making a false statement during the acquisition of a firearm, and one count of making a false statement in information required to be kept by a federal firearms dealer. After a three-day trial, the jury returned guilty verdicts against Lucien on both counts presented.
Lucien’s prosecution arose from an investigation undertaken by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Debra Walsh and Assistant U.S. Attorney Nick Abramson.
Netzahualcoyotl Guinto-ascenscio Sentenced for Unlawfully Transferring A Fraudulent Identification DocumentRead the Press Release
NETZAHUALCOYOTL GUINTO-ASCENSCIO, age 37, a citizen of Mexico, was sentenced today in federal court by U. S. District Judge Jay C. Zainey, announced U. S. Attorney Dana Boente. GUINTO was sentenced to approximately six months imprisonment. In addition to the term of imprisonment, Judge Zainey ordered that GUINTO be placed on one year of supervised release following his term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of supervised release. He will be turned over to U.S. Immigration and Customs Enforcement for immigration processing upon his release from imprisonment.
According to court documents, on March 21, 2013, GUINTO pled guilty to one count of a three-count indictment admitting that on or about October 16, 2012, he sold a counterfeit Social Security card, knowing that the identification document was produced without lawful authority, and the false identification document appeared to have been issued by or under the authority of the United States. The two remaining counts were dismissed by Judge Zainey on the government’s motion pursuant to GUINTO’s guilty plea.
The case was investigated the U. S. Department of Homeland Security, Homeland Security Investigations. The case was prosecuted by Special Assistant United States Attorney Robert Weir.
Montana Mines Resident Sentenced to 10 Years Imprisonment on Firearms ChargeRead the Press Release
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Two Individuals in Synthetic Drug Investigation Sentenced
CLARKSBURG, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II announced that the following individuals recently appeared in Federal Court in Clarksburg.
THOMAS RANDALL, age 41, of Montana Mines, West Virginia, was sentenced to 120 months imprisonment to be followed by one year of supervised release pursuant to an earlier entered plea of guilty to “Felon in Possession of a Firearm.” RANDALL was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Criminal Chief Shawn A. Morgan and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
JEREMIA J. PHILLIPS, age 30, of and DERRICK L. CALIP, age 40, of Clarksburg were sentenced to 21 months imprisonment to be followed by three years of supervised release, with credit for time served since April 18, 2012, pursuant to their earlier entered pleas of guilty to “Conspiracy to Distribute Schedule I Controlled Substances and Schedule I Controlled Substance Analogues, referred to as ‘bath salts’ from September 7, 2011, to April 17, 2012, in Harrison County. PHILLIPS and CALIP were remanded to the custody of the United States Marshal pending designation to a Federal institution.
The case was prosecuted by Assistant United States Attorney Robert H. McWilliams, Jr. and investigated by the Harrison County Drug and Violent Crimes Task Force and the Drug Enforcement Administration, the Three Rivers Drug Task Force and the Internal Revenue Service-Criminal Investigations.
Meadows Place Resident Detained on Child Pornography ChargesRead the Press Release
HOUSTON - William Butler Myers, 41, has been detained on allegations of production of child pornography, United States Attorney Kenneth Magidson announced today.
At a hearing held this morning, U.S. Magistrate Judge Francis Stacy found probable cause that Myers, of Meadow Place, committed the crime of production of child pornography and that he is a flight risk and danger to the community.
Officers with the Meadows Place Police Department arrested Myers on Friday, May 31, 2013, and a criminal complaint was filed in federal court on Monday, June 3.
The arrest came as the result of evidence found on a cell phone Myers took in for service. A cell phone repair shop employee notified law enforcement that he had found what he thought were images of child pornography on Myers’ phone. Law enforcement reviewed the images and obtained a warrant for Myers residence in Meadows Place, at which time agents seized several items, including computers.
Law enforcement has identified at least one alleged victim in relation to this case.
If convicted, Myers faces a mandatory minimum sentence of 15 and up to 30 years for producing child pornography as well as a possible $250,000 fine. Additionally, he could face a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect the children and prohibit the use of the Internet.
The allegations against Myers are the result of an investigation conducted by members of the Innocent Images Unit of the Houston FBI, including members of the Houston Police Department, which focuses its attention on investigating offenses involving the exploitation of children.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A defendant is presumed innocent unless convicted through due process of law.Maryland Man Sentenced to 46 Months in Prison for Possession of Child PornographyRead the Press Release
WASHINGTON – Marc Gange, 35, of Silver Spring, Md., was sentenced today to a prison term of 46 months on a federal charge of possession of child pornography, 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).
Gange pled guilty in February 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable James E. Boasberg. Upon completion of his prison term, Gange will be placed on 10 years of supervised release.
According to the government's evidence, on Nov. 15, 2012, Gange contacted a man he believed to be the father of a 12-year-old girl 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 several days, Gange engaged in online e-mail and instant message conversations with the undercover officer.
During this period of time, Gange sent the undercover officer approximately 79 images of child pornography which depicted, among other things, adult men engaged in sexual acts with children. Following Gange’s arrest on Dec. 5, 2012, the FBI’s Child Exploitation Task Force conducted a search of his work space and residence. Officers recovered approximately three videos and over 1,000 images of child pornography from a USB drive and the defendant’s computer.
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 sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force who investigated the case. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
13-201Marlys Young Running Crane Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on June 10, 2013, before Chief U.S. District Judge Dana L. Christensen, MARLYS YOUNG RUNNING CRANE, a 59-year-old resident of Browning, appeared for sentencing. YOUNG RUNNING CRANE was sentenced to a term of:
Prison: 12 months
Special Assessment: $100
Supervised Release: 1 year
YOUNG RUNNING CRANE was sentenced in connection with her guilty plea to misprision of a felony.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
Beginning in November 2010, Louis Romero, Henry Lopez, and several other individuals facilitated the distribution of methamphetamine in Browning and Great Falls.
During this time, YOUNG RUNNING CRANE had full knowledge that several of the other individuals were all involved in illegal methamphetamine distribution. YOUNG RUNNING CRANE failed to notify any authorities of these illegal activities. In fact, when law enforcement questioned YOUNG RUNNING CRANE, she provided an untruthful statement that this drug activity was not occurring, which in effect, concealed the crime.
Romero and Lopez pled guilty to federal charges.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that YOUNG RUNNING CRANE will likely serve all of the time imposed by the court. In the federal system, YOUNG RUNNING CRANE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Montana Violent Crimes Task Force.
Marine Life Dealers Charged for Illegal Harvest and Sale of Nurse SharksRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Otha Easley, Acting Special Agent in Charge for the National Oceanic and Atmospheric Administration, Office of Law Enforcement, Southeast Division, and David G. Pharo, Resident Agent in Charge, U.S. Fish & Wildlife Service (FWS), Office of Law Enforcement, announced the unsealing of criminal charges against Allan Wagner, formerly a resident of Monroe County, Florida, and Dean Trinh, 43, of Milpitas, California. More specifically, the indictment against Wagner and Trinh alleges that they engaged in a conspiracy to take, harvest, capture, transport, and sell quantities of juvenile nurse sharks from Florida state waters, for commercial sale and distribution in interstate commerce to their financial gain, in violation of the laws and regulations of the State of Florida, all in violation of the federal Lacey Act, Title 16, United States Code, Sections 3372(a)(2)(A), and 3373(d)(1) and (2). Dean Trinh has been arrested and made his initial appearance on the charges in California; his court appearance date in Florida remains to be set. Allan Wagner passed away prior to the unsealing of the indictment.
The case has been assigned to U.S. District Judge Jose E. Martinez. If convicted on the charges, Trinh faces possible terms of imprisonment of up to five years on each of the six charges brought against him.
According to the indictment, Wagner held a Florida Saltwater Products License but lacked the necessary federal annual vessel permit for sharks. He was the registered owner of a 40’ commercial fishing vessel. Trinh operated a business in Milpitas, California, known as AQUATOP USA, LLC, which, among other things, advertised the sale of nurse sharks on eBay and Craig’s List. Specifically, the indictment alleges that Wagner harvested nurse shark pups from lobster traps he placed in state waters and thereafter he and Trinh negotiated over the internet for the sale and transfer of the juvenile nurse sharks. The sharks were shipped to California by commercial air cargo, for further sale by Trinh. Over the period from August 2009 through October 2009, the defendants are alleged to have sold and transferred approximately 74 sharks.
Florida Administrative Code, Section 68B-44.005, “Commercial Harvest of Sharks: Federal Permit Required” provides in relevant part: “(1) No person shall harvest sharks in or from the waters of the state for commercial purposes or sell any shark harvested from such waters unless such person is in possession of a valid federal annual vessel permit for sharks issued pursuant to 50 C.F.R. §635.4. The federal Lacey Act, among other things, makes it unlawful for any person to import, export, transport, sell, receive, acquire, or purchase in interstate or foreign commerce, any fish or wildlife, taken, possessed, transported, or sold in violation of any law or regulation of any State. 16 U.S.C. §3372(a)(2)(A).
Mr. Ferrer commended the investigative efforts of the Special Agents of NOAA-OLE and FWS-OLE in this case, and the U.S. Attorney’s Office for the Northern District of California for their assistance in the preliminary proceedings in that District. The case is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
An indictment is only an accusation and a defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Manhattan U.S. Attorney Settles Civil Rights Lawsuit That Ensures Accessibility at Manhattan Rental ComplexRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has settled a civil rights lawsuit in Manhattan federal court against the developer, architect, and current owner of RiverEast, a residential apartment complex in Manhattan, alleging that the apartment complex is inaccessible to persons with disabilities. Specifically, the lawsuit alleges that THE JOHN BUCK COMPANY, LLC; BUCK DEVELOPMENT LLC; BUCK 92ND/1ST LLC; BUCK INVESTORS I, LLC; 92ND & FIRST RESIDENTIAL TOWER LLC; and THE JBC ACQUISTION & DEVELOPMENT FUND 1, LP (collectively, the “JOHN BUCK ENTITIES”), the developers of RiverEast, and SLCE ARCHITECTS LLP (“SLCE”), the architectural firm that designed the building, violated the design and construction provisions of the federal Fair Housing Act, which require that new multi-family housing complexes include certain features to make them accessible to persons with disabilities. The United States also sued RIVER EAST APARTMENTS INVESTORS, LLC, the current owner of RiverEast, to ensure that retrofits making the apartment complex accessible to persons with disabilities could be implemented. The consent decree was approved yesterday by U.S. District Judge Lorna G. Schofield.
Manhattan U.S. Attorney Preet Bharara said: “Developers and architects working in New York City have no excuse for failing to comply with the Fair Housing Act, and this Office will find and pursue offenders aggressively, particularly repeat offenders as we had here. Today’s settlement ensures that RiverEast will be made accessible to people with disabilities, and that people who were unlawfully denied full use of the complex will be compensated appropriately.”
According to the allegations contained in the Complaint:
RiverEast, a 196-unit apartment building located at 408 East 92nd Street in Manhattan, was designed and constructed with many inaccessible features. These include insufficient clear floor space in trash rooms and within bathrooms for maneuvering at lavatories and toilets; impediments to the installation of bathroom grab bars; kitchen and bathroom electrical outlets not fully usable to persons with mobility impairments; mailboxes that are too high for people who use wheelchairs; and inaccessible common area bathrooms. Inaccessible features at RiverEast were first brought to the attention of the United States by testing performed by the Fair Housing Justice Center. The U.S. Attorney’s Office frequently relies on testers to determine whether property owners are engaging in discrimination on the basis of race, disability, or other protected characteristics, and frequently files lawsuits based on the results of such testing. This is the ninth case filed by the Office in recent years based on testing.
The consent decree approved today requires the JOHN BUCK ENTITIES and SLCE to retrofit inaccessible features throughout the property and train employees on the requirements of the Fair Housing Act.
In addition, because one of the JOHN BUCK ENTITIES previously entered into a consent decree with the United States in the Northern District of Illinois to resolve allegations of Fair Housing Act violations, the United States sought increased penalties for this repeat violation of the Fair Housing Act. The JOHN BUCK ENTITIES and SLCE agreed to pay an increased civil penalty of $72,000, and to dedicate $125,000 to compensate people who have been harmed by inadequate accessibility at RiverEast.
Under the settlement, a person may be entitled to receive monetary compensation if he or she was:
- Discouraged from living at RiverEast because of a lack of accessible features;
- Limited in the full use or enjoyment of an apartment or amenity at RiverEast due to a lack of accessible features;
- Financially affected by having to make an apartment at RiverEast more accessible to persons with disabilities;
- Prevented from having visitors because of a lack of accessible features at RiverEast; or
- Otherwise injured by the lack of accessible features or discriminated against on the basis of disability at RiverEast.
People who may be entitled to compensation should file a claim by contacting the Civil Rights Complaint Line at (212) 637-0840 (a TDD line is available at (212) 637-0039), using the Civil Rights Complaint Form available on the U.S. Attorney’s Office’s website, http://www.justice.gov/usao/nys/civilrights.html, or sending a written claim to:
U.S. Attorney’s Office, Southern District of New York
86 Chambers Street, 3rd Floor
New York, New York, 10007
Attention: Chief, Civil Rights Unit
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Emily E. Daughtry, Li Yu, and Carina H. Schoenberger are in charge of the case.
U.S. v. RiverEast et al. Consent Order
Longtime Fugitive Who Ran Telemarketing Fraud Scheme That Cost Victims over $16 Million Sentenced to 6½ Years in Federal PrisonRead the Press Release
LOS ANGELES – A former Arizona resident who previously admitted running a “work-at-home” telemarketing fraud scheme that caused thousands of victims to lose more than $16 million has been sentenced to 78 months in federal prison.
Matthew Craig Rubin, 46, who until 2006 resided in Scottsdale, Arizona, was sentenced yesterday afternoon by United States District Judge R. Gary Klausner. In addition to the 6½-year prison term, Judge Klausner ordered Rubin to pay a $16 million judgment obtained for his fraud victims by the Federal Trade Commission.
Matthew Rubin – along with his brother, Andrew Rubin – ran Medicor, LLC, a Van Nuys-based marketing company that deceived customers into believing that the customers could set up home-based medical billing businesses. Matthew Rubin and his brother executed a scheme to defraud consumers who purchased medical billing software, in part by making false claims about customers receiving a list of doctors who needed medical billing services.
Medicor placed advertisements in the “help wanted” section of numerous publications. Generally, the advertisements stated that a person could earn $20 to $40 an hour from home by helping doctors submit medical bills to insurance companies. Between July 1999 and March 2001, Medicor sold more than 30,000 Kwic-Claim Medical Billing Software packages for approximately $400 each, but only 65 people were actually able to successfully bill using Medicor software.
Matthew Rubin also set up National Business Information Systems (NBIS), which functioned solely as a reference for Medicor. Following a script provided by Matthew Rubin, Medicor employees referred potential Medicor customers to NBIS, which existed solely to provide positive references for Medicor.
In September 2005, Matthew Rubin pleaded guilty to two counts of money laundering and one count of witness tamperingadmitting that he laundered the proceeds of a telemarketing fraud scheme through foreign bank accounts. Matthew Rubin also admitted that he persuaded the former controller of his company to lie in the Federal Trade Commission case against him and his company.
In 2006, Andrew Rubin, pleaded guilty to two counts of money laundering related to the telemarketing fraud scheme and, in 2007, was sentenced to three years in prison and three years of supervised release. Two weeks ago, Judge Klausner sentenced Andrew Rubin to another year in prison for violating the terms of his supervised release.
In 2001, the Federal Trade Commission filed a civil lawsuit against Medicor and the Rubins in United States District Court in Los Angeles. During this litigation, Rubin convinced the Medicor controller to lie for him so that he would be excluded from a federal court injunction and asset freeze order. Free from the asset freeze, Rubin wire transferred his fraud proceeds from New Zealand to the U.S. and withdrew $665,000 in $100 bills from his bank account. In 2002, the FTC prevailed in the lawsuit, and a federal judge ordered Medicor and the Rubins to pay more than $16.5 million (see: http://www.ftc.gov/opa/2002/07/medicor.shtm).
In 2006, just before he was to be sentenced in this case, Matthew Rubin was arrested in Arizona on suspicion of committing another fraud. He was released on bond in that case, and he fled to Mexico, where he remained a fugitive for well over five years. With the assistance of the U.S. Postal Inspection Service and the Mexican government, Rubin was returned to the United States last year.
The criminal case against Rubin was investigated by the IRS - Criminal Investigation and the United States Postal Inspection Service.
Release No. 13-079
Lapwai Man Sentenced for Illegally Possessing FirearmRead the Press Release
COEUR D’ALENE – Alex James Ellenwood, 24, of Lapwai, Idaho, was sentenced today in United States District Court in Coeur d’Alene to 40 months in prison for unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Ellenwood to serve three years of supervised release and forfeit the firearm he illegally possessed. Ellenwood pleaded guilty to the charge on March 19, 2013.
According to the plea agreement, on September 5, 2012, Ellenwood was arrested at a Clearwater County campground on an outstanding warrant. During a search incident to the arrest, law enforcement found a Ruger .44 pistol in Ellenwood’s backpack. Ellenwood is prohibited from possessing firearms due to his 2008 conviction for assault with a deadly weapon, a felony punishable by a term of imprisonment exceeding one year.
The case was investigated by Nez Perce Tribal Police, Clearwater County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Kissimmee Couple Pleads Guilty to Stealing $2.8 Million from Clients in Medicaid Planning Fraud SchemeRead the Press Release
Orlando, FL - United States Attorney Robert E. O'Neill announces that Ross Littlefield (48, Kissimmee) and Linda Littlefield (41, Kissimmee) have each pleaded guilty to one count of conducting a prohibited monetary transaction. They each face a maximum penalty of 10 years in federal prison. The Littlefields were charged by information on April 29, 2013.
According to their plea agreements, Linda Littlefield, a former attorney, formed The Littlefield Law Group, P.A. The law group ultimately matured to specialize in Medicaid planning. In 2007, Ross Littlefield, Linda Littlefield, and others became the new directors of a non-profit organization called the JNN Foundation, Inc. The JNN Foundation established the JNN Special Needs Asset Preservation Pooled Trust. This type of trust can lawfully shelter assets and not affect the beneficiary’s Medicaid or Social Security Income eligibility.
Between 2007 and 2010, Ross and Linda Littlefield induced approximately 26 clients to contribute more than $4.7 million to the JNN Foundation under false pretenses. Once the client funds were received by the foundation, the Littlefields began transferring money to other accounts, which they controlled. They then used the money for their own personal benefit. Specifically, they used client deposits to purchase property, vehicles, and make personal loans to their other business. The deposits received from clients were made under the guise of Medicaid planning. To conceal their scheme, the Littlefields sent false quarterly statements to their clients. The falsified quarterly statements showed the client’s balance, when in fact, the Littlefields did not have the money in the bank accounts to cover all of the clients’ expenses. Consequently, the Littlefields stole $2,897,604.49 from their clients.
This case was investigated by the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorney David Haas.
Kewa Pueblo Man Sentenced for Federal Child Abuse ConvictionRead the Press Release
ALBUQUERQUE – Cruz Tenorio, 29, a member and resident of Kewa Pueblo, N.M., was sentenced this afternoon to six months in federal prison followed by six months in a half-way house. He will then be on supervised release for a year.
Tenorio pleaded guilty on March 11, 2013, and admitted abusing a three-year-old Indian child in 2011 by negligently tattooing the letter “I” on the child’s arm. Tenorio admitted using rudimentary, homemade instruments, tools and unsterilized materials to tattoo the child, and that he did not take sufficient precautions to prevent possible infection. Tenorio also acknowledged that he had no formal training in the application of tattoo body art when he tattooed the child at his home on Kewa Pueblo.
During today’s sentencing hearing, Tenorio also was ordered to pay restitution in an amount adequate to ensure that the child victim is able to obtain any psychological and medical services necessary arising from the offense, including the removal of the tattoo. Tenorio also is required to pay restitution to cover the costs of removing the tattoos he applied to another victim in March 2012, when the victim was 15 years old.
The case was investigated by the Southern Pueblos Agency of BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Niki Tapia-Brito.
Kewa Pueblo Man Sentenced for Federal Child Abuse ConvictionRead the Press Release
ALBUQUERQUE – Cruz Tenorio, 29, a member and resident of Kewa Pueblo, N.M., was sentenced this afternoon to six months in federal prison followed by six months in a half-way house. He will then be on supervised release for a year.
Tenorio pleaded guilty on March 11, 2013, and admitted abusing a three-year-old Indian child in 2011 by negligently tattooing the letter “I” on the child’s arm. Tenorio admitted using rudimentary, homemade instruments, tools and unsterilized materials to tattoo the child, and that he did not take sufficient precautions to prevent possible infection. Tenorio also acknowledged that he had no formal training in the application of tattoo body art when he tattooed the child at his home on Kewa Pueblo.
During today’s sentencing hearing, Tenorio also was ordered to pay restitution in an amount adequate to ensure that the child victim is able to obtain any psychological and medical services necessary arising from the offense, including the removal of the tattoo. Tenorio also is required to pay restitution to cover the costs of removing the tattoos he applied to another victim in March 2012, when the victim was 15 years old.
The case was investigated by the Southern Pueblos Agency of BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Niki Tapia-Brito.
Kansas Man Sentenced to 19+ Years for Interstate Travel to Have Sex with A ChildRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., man has been sentenced to 235 months in federal prison after pleading guilty to interstate travel for the purpose of engaging in sex with a child, U.S. Attorney Barry Grissom said today.
Robert Poe, III, 39, Kansas City, Kan., pleaded guilty to three counts of traveling from Kansas to Missouri for the purpose of engaging in sex acts with a child.
“Protecting children against sexual predators and achieving justice for victims of those crimes are our highest priorities,” said U.S. Attorney Barry Grissom. “In this era of instant communication and interaction in cyberspace the threats to our children continue to grow and evolve.”
During hearings, prosecutors told a federal judge the crimes occurred in 1999 and 2000. They said the investigation began in November 2000 when the Kansas City, Kan., Police Department received a complaint from the mother of a 7-year-old boy. The mother said Poe had engaged in sexual acts with her son. At the time, Poe was a friend of the mother’s boyfriend, Michael Arnett, and Poe sometimes served as a babysitter for the boy. Arnett was charged in a separate federal criminal case, pleaded guilty and was sentenced to 30 years in federal prison.
Prosecutors told the judge that one incident (count one) occurred in April 2000 when Poe was babysitting the boy at Poe’s home. Poe showed the boy photos of nude children and then made the boy perform oral sex on him.
Another incident (count two) occurred in July 2000 when Poe was babysitting. The boy said Poe held a gun to his head and forced him to perform oral sex.
Another incident (count three) occurred in 1999 or 2000. A victim told federal agents that he and his now deceased brother were molested by Poe and Arnett while the victim was between 10 and 12 years old. The victim said he first met Arnett in 1997 when his brother was a patient at the Children’s Mercy Hospital in Kansas City. The victim’s brother had cystic fibrosis and died in May 2003. The victim said Arnett befriended him and his brother. The victim said the molestation started when Arnett’s friend Poe started showing up with Arnett in 1998. The victim said Poe held a gun to his head and forced him to perform oral sex on him. The victim said Poe first molested him at the house of Poe’s father in Shawnee Mission, Kan. The victim said Arnett and Poe took him and his brother out of town on weekend trips and molested both boys. The trips were to St. Louis, Mo., Bennet Springs, Mo., and Oklahoma City, Okla.
Grissom commended the Kansas City, Kan., Police Department, ICE’s Homeland Security Investigations and Assistant U.S. Attorney Kim Martin for their work on the case.
Kansas City Man Sentenced for Sex Trafficking in KansasRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Mo., man has been sentenced to federal prison for sex trafficking, U.S. Attorney Barry Grissom said today.
Tony A Rogers, Jr., 25, Kansas City, Mo., was sentenced to 57 months in prison. Rogers pleaded guilty to one count of interstate transportation of an individual with intent to engage in prostitution. In his plea, he admitted he was arrested Aug. 9, 2012, when the Special Investigations Unit of the Prairie Village Police Department conducted a prostitution sting. An investigator working undercover called a number on an Internet site and arranged for a woman to meet him in Prairie Village, Kan.
At approximately 8 p.m. that day, Rogers and a co-defendant left Independence, Mo., with a woman identified in the indictment as K.C., with the intent that K.C. would engage in prostitution. Police took K.C. into custody when Rogers dropped her off. Rogers and the co-defendant were stopped and arrested after they dropped off K.C.
Co-defendant Danyelle N. Putman pleaded guilty to the same charge as Rogers did. She is set for sentencing June 25.
Grissom commended the Prairie Village Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Kamiah Man Pleads Guilty to Involuntary ManslaughterRead the Press Release
COEUR D'ALENE – Nicholas P. Allman, 22, of Kamiah, Idaho, pleaded guilty today in federal court to one count of involuntary manslaughter, U.S. Attorney Wendy J. Olson announced.
According to statements made in court, on October 28, 2011, Allman and two friends attended an outdoor party outside of Kooskia, Idaho. Witnesses at the party recalled that Allman was drinking alcohol and appeared to be intoxicated. In the early morning hours of October 29, 2011, the men left the party with Allman driving the vehicle. Approximately one hour later, Allman failed to negotiate a turn on Harris Ridge Road. His vehicle left the roadway and rolled down a steep embankment onto U.S. Highway 12 below. The three men were ejected from the vehicle. James Oatman Jr. died during the rollover and was pronounced dead at the scene. Allman’s blood was drawn by police later that morning and it was determined that he was intoxicated, having a blood alcohol level above .08.
The charge of involuntary manslaughter is punishable by up to eight years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for August 26, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d’Alene.
The case was investigated by the Federal Bureau of Investigation, Idaho State Police, and Nez Perce Tribal Police, with assistance from the Idaho County Sheriff’s Office.
Justice Department Settles Sex Discrimination Lawsuit Against the Town of Griffith, IndianaRead the Press Release
The Justice Department announced today that it has entered into a consent decree with the town of Griffith, Ind. that, if approved by the court, will resolve allegations that the Griffith Police Department discriminated against Sergeant Marlene Starcevich based on her sex in violation of Title VII of the Civil Rights Act of 1964. Title VII prohibits employment discrimination based on race, color, sex, national origin, or religion and retaliation for engaging in protected activity.
The department’s complaint was filed today along with a notice informing the court of the simultaneous filing of a consent decree to resolve the complaint. The complaint alleges that the Griffith Police Department violated Title VII when it failed to assign Starcevich to a shift commander position because of her sex. Starcevich is a 22-year veteran of the Griffith Police Department and the only female officer in the police department’s history. According to the complaint, while the Griffith Police Department routinely assigned its male sergeants to shift commander positions, when a shift commander position became available in July 2010, Griffith denied Starcevich the position because of her sex.
According to the complaint, instead of assigning Starcevich to the open and available shift commander position, the Griffith Police Department promoted a male corporal to sergeant and assigned him as shift commander. The police department did not make Starcevich a shift commander but, instead, placed Starcevich as second-in-command to another male sergeant.
Under the terms of the consent decree, which must still be approved by the U.S. District Court for the Northern District of Indiana, the Griffith Police Department agreed to injunctive relief that prohibits Griffith from denying Starcevich assignments because of her sex, or otherwise unlawfully discriminating against her. The Police Department has already assigned Starcevich to shift commander duties and must also pay her $5,000 in monetary relief. In addition, the town of Griffith must revise its equal employment opportunity policies to protect its employees from discrimination, and conduct training of its personnel regarding these policies.“Gender discrimination in employment of any kind will not be tolerated,” said Jocelyn Samuels, Principal Assistant Attorney General of the Civil Rights Division. “This lawsuit should send a clear message that the department is committed to eliminating and remedying all forms of gender discrimination in the work place and that we will take necessary action to vigorously protect the rights of those in the public sector facing discrimination.”
Additional information about Title VII can be found on the Justice Department website, www.justice.gov/crt/emp , as well as on the Equal Employment Opportunity Commission’s website at www.eeoc.gov.
Justice Department Issues New Guidelines for Payment of<br /> Attorneys’ Fees, Expenses, in Large Chapter 11 Bankruptcy CasesRead the Press Release
The Department of Justice today announced new guidelines for the payment of attorneys’ fees and expenses in large chapter 11 bankruptcy cases in order to enhance disclosure and transparency in the compensation process and to help ensure that attorneys’ fees and expenses are based on market rates. The guidelines, which will go into effect on Nov. 1, 2013, were developed by the U.S. Trustee Program (USTP), the component of the department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.
“The costs of bankruptcy fall on the creditors and employees of the debtor companies,” said Acting Associate Attorney General Tony West. “At a time when both the public and the most sophisticated participants in the bankruptcy process say bankruptcy attorneys’ costs are rising too rapidly, these guidelines are designed to ensure that statutory requirements limiting bankruptcy fees to market rates – not premium rates – are followed.”
The Bankruptcy Code allows professionals who provide services during a chapter 11 case to be compensated from funds of the debtor company if statutory requirements are met and the bankruptcy court approves payment. Reviewing and, where appropriate, objecting to professionals’ applications for fees and expenses is a statutory duty of the USTP. The guidelines explain the criteria that U.S. Trustees use in reviewing and objecting to those applications. They do not supersede statutes, rules or court orders.
The update to the guidelines takes into account the significant changes that have occurred in the legal industry as well as the increasing complexity of business bankruptcy reorganization cases. The guidelines were originally issued in 1996 and are being updated in phases; the first phase, announced today, governs the USTP’s review of fees and expenses requested by attorneys in chapter 11 cases with $50 million or more in assets and $50 million or more in liabilities. Although the guidelines are not subject to the notice and comment process of the Administrative Procedure Act, the USTP nevertheless modified earlier drafts of the guidelines after two public comment periods and a public meeting.“We were pleased by the many helpful suggestions we received as we drafted the guidelines,” said Clifford J. White III, Director of the Executive Office for U.S. Trustees. “The U.S. Trustee Program went to great lengths to solicit public input while developing the updated guidelines, reviewing and incorporating suggestions from academics, attorneys and other participants in the bankruptcy system.”
The guidelines require a showing that the rates charged reflect market rates outside of bankruptcy.The guidelines also provide for the:
• Use of budgets and staffing plans; • Disclosure of rate increases that occur during the representation; • Use of rates that are based on the attorney’s home office location; • Submission of billing records in an open, searchable electronic format; • Use of independent fee committees and fee examiners; and
• Use of model forms and templates for applications for compensation and expenses.The updated guidelines apply to attorneys’ fees and expenses in cases filed on or after Nov. 1, 2013, that meet the large case threshold. Until the USTP adopts additional superseding guidelines in the next phases of revisions, the 1996 guidelines will continue in effect for the review of fee applications filed in larger chapter 11 cases by professionals who are not attorneys; in all chapter 11 cases below the large case threshold; and in cases under other chapters of the Bankruptcy Code.
USTP attorneys in districts throughout the country will vigorously enforce the guidelines, defending them in bankruptcy court and through appeals as appropriate. The USTP also will educate bankruptcy attorneys regarding the guidelines and encourage bankruptcy courts to incorporate the guidelines in their local rules of bankruptcy procedure, as many have done with the 1996 guidelines.
The guidelines and explanatory materials are posted at www.justice.gov/ust.Justice Department Issues New Guidelines for Payment of Attorneys’ Fees, Expenses, in Large Chapter 11 Bankruptcy CasesRead the Press Release
New Guidelines Enhance Disclosure and Transparency in Bankruptcy Compensation Process
and Ensure Attorneys’ Fees are Based on Market RatesWASHINGTON — The Department of Justice today announced new guidelines for the payment of attorneys’ fees and expenses in large chapter 11 bankruptcy cases in order to enhance disclosure and transparency in the compensation process and to help ensure that attorneys’ fees and expenses are based on market rates. The guidelines, which will go into effect on Nov. 1, 2013, were developed by the U.S. Trustee Program (USTP), the component of the department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.
“The costs of bankruptcy fall on the creditors and employees of the debtor companies,” said Acting Associate Attorney General Tony West. “At a time when both the public and the most sophisticated participants in the bankruptcy process say bankruptcy attorneys’ costs are rising too rapidly, these guidelines are designed to ensure that statutory requirements limiting bankruptcy fees to market rates – not premium rates – are followed.”
The Bankruptcy Code allows professionals who provide services during a chapter 11 case to be compensated from funds of the debtor company if statutory requirements are met and the bankruptcy court approves payment. Reviewing and, where appropriate, objecting to professionals’ applications for fees and expenses is a statutory duty of the USTP. The guidelines explain the criteria that U.S. Trustees use in reviewing and objecting to those applications. They do not supersede statutes, rules or court orders.
The update to the guidelines takes into account the significant changes that have occurred in the legal industry as well as the increasing complexity of business bankruptcy reorganization cases. The guidelines were originally issued in 1996 and are being updated in phases; the first phase, announced today, governs the USTP’s review of fees and expenses requested by attorneys in chapter 11 cases with $50 million or more in assets and $50 million or more in liabilities. Although the guidelines are not subject to the notice and comment process of the Administrative Procedure Act, the USTP nevertheless modified earlier drafts of the guidelines after two public comment periods and a public meeting.
“We were pleased by the many helpful suggestions we received as we drafted the guidelines,” said Clifford J. White III, Director of the Executive Office for U.S. Trustees. “The U.S. Trustee Program went to great lengths to solicit public input while developing the updated guidelines, reviewing and incorporating suggestions from academics, attorneys and other participants in the bankruptcy system.”
The guidelines require a showing that the rates charged reflect market rates outside of bankruptcy. The guidelines also provide for the:
- Use of budgets and staffing plans;
- Disclosure of rate increases that occur during the representation;
- Use of rates that are based on the attorney’s home office location;
- Submission of billing records in an open, searchable electronic format;
- Use of independent fee committees and fee examiners; and
- Use of model forms and templates for applications for compensation and expenses.
The updated guidelines apply to attorneys’ fees and expenses in cases filed on or after Nov. 1, 2013, that meet the large case threshold. Until the USTP adopts additional superseding guidelines in the next phases of revisions, the 1996 guidelines will continue in effect for the review of fee applications filed in larger chapter 11 cases by professionals who are not attorneys; in all chapter 11 cases below the large case threshold; and in cases under other chapters of the Bankruptcy Code.
USTP attorneys in districts throughout the country will vigorously enforce the guidelines, defending them in bankruptcy court and through appeals as appropriate. The USTP also will educate bankruptcy attorneys regarding the guidelines and encourage bankruptcy courts to incorporate the guidelines in their local rules of bankruptcy procedure, as many have done with the 1996 guidelines.
The guidelines and explanatory materials are posted at www.justice.gov/ust.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411To view the Guidelines and other informational material, click here.
Johnson City Physician Sentenced to Serve Two Years in Prison for Unapproved Foreign DrugsRead the Press Release
GREENEVILLE, Tenn. – William Ralph Kincaid, 68, of Johnson City, Tenn., was sentenced on June 10, 2013, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 24 months in federal prison.
Kincaid pleaded guilty in December 2012, to receiving misbranded drugs with intent to defraud or mislead in violation of the Food, Drug and Cosmetics Act. Kincaid faced a term of up to three years in prison and fines of up to $250,000.
As set out in his plea agreement, Kincaid was a physician and managing partner for East Tennessee Hematology-Oncology Associates, P.C., doing business as McLeod Cancer and Blood Center, Johnson City, Tennessee (McLeod Cancer), a professional corporation providing care and treatment for patients with cancer and blood diseases. McLeod Cancer purchased large amounts of prescription drugs, to include chemotherapy drugs, which were administered through the clinic; McLeod Cancer then sought reimbursement through the Medicare and Medicaid/TennCare programs as well as other health benefits programs.
Beginning in 2007, McLeod Cancer began obtaining drugs from a Canadian business, Quality Specialty Products (QSP). The drugs had been obtained from foreign sources and had not been approved by the U.S. Food and Drug Administration (FDA) for distribution or use in the United States. The FDA has responsibility for enforcing the Food, Drug and Cosmetics Act to ensure the health and safety of the American public. The safety and efficacy of drugs is protected by requiring that any manufacturer or distributor of drugs in the United States be registered with and approved by the FDA. Drugs with labeling in a language other than English or from foreign sources not registered with the FDA are considered “misbranded.” Further, the FDA regulates the distribution of drugs to ensure they are handled properly so as not to lose their efficacy (such as becoming too hot or cold).
After nurses at McLeod Cancer raised concerns in late 2007 and early 2008 about chemotherapy drugs with foreign labeling, the clinic stopped ordering drugs from QSP. However, in August 2009, Kincaid and Michael Combs, McLeod Cancer’s business manager, met with a QSP representative and began ordering misbranded unapproved drugs. Dr, Kincaid directed Combs to have the drugs shipped to a storage business in Johnson City which Dr. Kincaid owned in part. The drugs, after having been received at the storage business, were transported to Combs' office at McLeod Cancer and then placed by a pharmacy technician into the clinic's drug storage and control system where the misbranded drugs were mingled with FDA-approved drugs from legitimate sources. FDA-approved drugs obtained from legitimate U.S. drug manufacturers and distributors were still shipped directly to McLeod Cancer and not to the storage business.
McLeod Cancer obtained misbranded unapproved drugs, to include the drugs ABRAXANE®, ALIMTA®, AVASTIN®, ELOXATIN®, GEMZAR®, HERCEPTIN®, RITUXAN®/MABTHERA®, TAXOTERE®, and ZOMETA®, from approximately September 2007 to early 2008 and from August 2009 to February 2012, purchasing over $2 million in misbranded unapproved drugs, providing those drugs to their patients, and billing Medicare, TennCare, and other government health benefits programs approximately $2.3 million for the unapproved drugs.
In imposing sentence, Judge Greer stated “it was about greed” and the “motivation was to make more money.” Judge Greer acknowledged that while it was impossible to know which patients had received the unapproved drugs, the “emotional harm” to patients from not knowing whether they had received unapproved drugs contributed to the seriousness of the offense.
Kincaid, through his attorney, advised Judge Greer that he had entered into an agreement with the United States and the State of Tennessee to pay $2.55 million in settlement of civil claims under the False Claims Act for false and fraudulent claims for reimbursement submitted to the Medicare and TennCare programs for unapproved drugs. Kincaid also made an initial payment of $500,000 pursuant to the settlement agreement.
Judge Greer allowed Kincaid to remain on bond pending designation of an institution for service of sentence by the U.S. Bureau of Prisons.
“This conviction sends a message to all medical providers and practitioners that federal criminal penalties await those who distribute misbranded and potentially unsafe drugs, especially those used in cancer treatment. The FDA's regulatory system is designed to protect patients from substances such as these." said U.S. Attorney William C. Killian.
“The FDA's Office of Criminal Investigations is committed to protecting the public health by aggressively pursuing unscrupulous medical practitioners who jeopardize their patients' safety with unapproved medications," said John Roth, Director of FDA’s Office of Criminal Investigations. “The FDA applauds the hard work of the U.S. Attorney's Office, the Federal Bureau of Investigation, and the Tennessee Bureau of Investigation in bringing about this successful result."
Agencies involved in this investigation included Food & Drug Administration Office of Criminal Investigation, Federal Bureau of Investigation, and Tennessee Bureau of Investigation. Assistant U.S. Attorney Neil Smith represented the United States.
Isleta Pueblo Man Pleads Guilty to Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – James Anzara, 34, a member and resident of the Isleta Pueblo, N.M., pleaded guilty this afternoon to an indictment charging him with involuntary manslaughter. Anzara’s guilty plea was announced by U.S. Attorney Kenneth J. Gonzales, DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services, and Acting Police Chief Kevin Mariano of the Pueblo of Isleta Police Department.
During today’s plea hearing, Anzara admitted killing a man while driving while under the influence of alcohol on Iselta Pueblo on Apr, 21, 2012. Anzara also acknowledged his blood alcohol concentration was .08 grams or higher within three hours after he killed the victim.
At sentencing, which has yet to be scheduled, Anzara faces a maximum penalty of egiht years of imprisonment to be followed by a term of supervised release to be determined by the court.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and the Isleta Police Department, and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
Irving Spotted Eagle, Jr. Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in
Great Falls, on June 10, 2013, before U.S. Magistrate Judge Dana L. Christensen, IRVING SPOTTED EAGLE, JR., a 27-year-old resident of Billings and an enrolled member of the Blackfeet Tribe of Indians, pled guilty to assault resulting in serious bodily injury. Sentencing has been set for September 26, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
On November 12, 2011, SPOTTED EAGLE was so angry that S.T. would not return his amorous advances that he pinned her against a wall in his house and repeatedly punched her until his knuckles started to bleed. As she tried to flee the house, SPOTTED EAGLE grabbed S.T. by the hair and continued assaulting her. He did not stop until a neighbor began yelling at him to stop. S.T. was transported to the hospital, where she was treated for a concussion, nasal bone fracture, and blunt force trauma to her face.
The assault occurred within the exterior boundaries of the Blackfeet Indian Reservation.
SPOTTED EAGLE faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Blackfeet Law Enforcement.
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on June 11, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individuals were arraigned:
JOSHUA DAVID CARRENO, a 29-year-old resident of Shepherd, appeared on charges of possession with the intent to distribute prescription drugs and possession of stolen firearms. He is currently detained. If convicted of these charges, CARRENO faces possible penalties of 20 years in prison, a $1,000,000 fine, and 3 years supervised release. Assistant U.S. Attorney Brendan P. McCarthy is the prosecutor for the United States. The investigation was a cooperative effort between the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration.
ARIK ALAN MACBLANE, a 33-year-old resident of Glendive, appeared on a charge of conspiracy to possess with the intent to distribute methamphetamine. He is currently detained. If convicted of this charge, MACBLANE faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $4,000,000 fine, and 5 years supervised release. Assistant U.S. Attorney Jessica T. Fehr is the prosecutor for the United States. The investigation was conducted by the Billings Big Sky Safe Streets Task Force.
ADAM RONALD TOTTEN, a 34-year-old resident of Billings, appeared on a charge of possession of stolen mail. He is currently detained. If convicted of this charge, TOTTEN faces possible penalties of 20 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Jessica T. Fehr is the prosecutor for the United States. The investigation was conducted by the U.S. Postal Inspector Service.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on June 11, 2013, before U.S. Magistrate Judge Keith Strong, the following individuals were arraigned:
JESS JAMES RUTHERFORD, JR., a resident of Browning, appeared on a charge of assault resulting in serious bodily injury. He is currently detained. If convicted of this charge, RUTHERFORD faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Ryan G. Weldon is the prosecutor for the United States. The investigation was a cooperative effort between the Bureau of Indian Affairs and the Federal Bureau of Investigation.
DUSTIN JAY AFTER BUFFALO, age 21, and MICHAEL THOMAS BAD OLD MAN, age 21, residents of Browning, appeared on a charge of burglary. They are currently detained. If convicted of these charges, they each face possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Ryan G. Weldon is the prosecutor for the United States. The investigation was a cooperative effort between the Bureau of Indian Affairs and the Blackfeet Law Enforcement Services.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on June 11, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, the following individuals were arraigned:
IRENE PASTER, age 66, and YOLANDA PASTER, age 41, residents of Big Sky, appeared on charges of conspiracy to structure currency transactions with domestic financial institutions for the purpose of evading IRS currency transaction reports and currency structuring. They are currently released on special conditions. If convicted of these charges, they each face possible penalties of 5 years in prison, a $250,000 fine, and 3 years supervised release on each count. Assistant U.S. Attorney Chad C. Spraker is the prosecutor for the United States. The investigation was conducted by the Criminal Investigation Division of the Internal Revenue Service.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on June 6, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
MICHAEL CONNELLY, SR., a 56-year-old resident of Browning, appeared on charges of sexual abuse, deprivation of rights under color of law, and making a false statement to a federal officer. He is currently released on special conditions. If convicted of these charges, CONNELLY faces possible penalties of life in prison for the sexual abuse count, 1 year in prison for the deprivation of rights under color of law count, and 8 years in prison for the false statement to a federal officer count. He also faces a $250,000 fine and lifetime supervision. Assistant U.S. Attorney Ryan G. Weldon is the prosecutor for the United States. The investigation was conducted by Federal Bureau of Investigation.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.