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4 June 2013
Houston Woman Convicted for Role in Rip-Off of Philadelphia Sheriff's OfficeRead the Press Release
PHILADELPHIA – A federal jury, today, returned guilty verdicts on all counts against Aarti Gupte, 31, of Houston, TX, for her involvement in scheme to defraud the Philadelphia Sheriff’s Office (“PSO”). The jury found Gupte guilty of conspiracy to commit wire fraud and wire fraud. The scheme stole funds from the PSO’s bank accounts.
Sheriff’s Sales of real estate generate millions of dollars annually. The sales require the PSO to write checks to different entities with regard to the properties sold. Co-conspirator Richard Bell, who was charged separately and pleaded guilty, was a PSO employee in the Accounting Department who took advantage of loose controls and wrote checks drawn on the PSO’s bank accounts made payable to individuals and companies. Bell gave some of the checks to Robert Rogers, who has also pleaded guilty. Rogers recruited Aarti Gupte, who had two companies, to participate in the scheme. Bell wrote four checks, totaling $242,186.73, to The Processing Link and Yellow Rose Enterprises, LLC during the period from 2009 to 2010. Gupte deposited the checks into her company bank accounts, withdrew the proceeds and shared them with Rogers who shared with Bell. When approached by Federal Bureau of Investigation agents, the defendant admitted that she had participated in this scheme to defraud the PSO.
U.S. District Court Judge Legrome D. Davis scheduled sentencing for September 16, 2013. Gupte faces a statutory maximum sentence of 60 years in prison.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Henderson Man Sentenced for Retaliating Against A Federal WitnessRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today Senior Judge James C. Fox sentenced RON O’NEAL HARGROVE, 37, of Henderson, North Carolina, to 40 months imprisonment and 3 years of supervised release for Retaliating Against a Witness and Aiding and Abetting; and for Possession with the Intent to Distribute a Quantity of Cocaine.
On October 5, 2012, HARGROVE participated in an assault on a federal witness who previously testified against persons convicted of gun crimes before Senior Judge James C. Fox. HARGROVE and a co-defendant, who was tried and convicted by a jury in May, approached the federal witness at a convenience store in Henderson, NC, accused the witness of being a “snitch” and proceeded to beat the witness.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Henderson Police Department. Assistant United States Attorney, S. Katherine Burnette prosecuted the case.
Fort Yates Man Indicted for Sexual Abuse ChargesRead the Press Release
BISMARCK – First Assistant U.S. Attorney Lynn Jordheim announced that Donald Clark Luger, a/k/a Jody Luger, 62, Fort Yates, N.D., was indicted by a federal grand jury in May 2013 and is charged with aggravated sexual abuse of a child, abusive sexual contact and child abuse in Indian country.
Luger appeared in U.S. District Court in Bismarck on May 30, 2013, for an initial appearance and arraignment. Luger entered not guilty pleas to the charges. Luger is currently being detained by the U.S. Marshals Service pending trial on this matter. Trial is currently scheduled for July 23, 2013, at 9:30 a.m., in U.S. District Court in Bismarck.
The case is being investigated by the Federal Bureau of Investigation and Bureau of Indian Affairs - Standing Rock Agency.
Jordheim stressed that an indictment is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Assistant U.S. Attorney Gary Delorme is prosecuting the case.
Former Wayne County Assistant County Executive Pleads Guilty to Honest Services FraudRead the Press Release
Former Wayne County Assistant County Executive Michael Demetrus Grundy, of Detroit, Michigan, pleaded guilty today to Conspiracy to Commit Honest Services Wire Fraud in connection with his position as Executive Director of HealthChoice of Michigan, United States Attorney Barbara L. McQuade announced today.
Joining McQuade in the announcement were Special Agent in Charge Robert D. Foley, III, Federal Bureau of Investigation and Special Agent in Charge Erick Martinez, Internal Revenue Service, Criminal Investigation.
According to court records, on October 19, 2011, Grundy caused the accountant of HealthChoice to wire transfer $400,000.00 to a company called Medtrix, falsely representing that the payment was pursuant to a contract between HealthChoice and Medtrix executed on March 1, 2011 for Medtrix to develop and implement an electronic medical records (“EMR”) system for HealthChoice medical providers. However, the contract was actually not executed until October of 2011, and it was not approved by the HealthChoice Board of Trustees. Further, Medtrix never created or obtained any EMR programming, and an EMR system that was developed by another company was already being offered to HealthChoice networks and medical providers.
Co-conspirator Keith Griffin pleaded guilty on May 10, 2012 to the wire fraud scheme. He admitted that Grundy used his position as Executive Director of HealthChoice to authorize fraudulent payments to Medtrix and Advertise Me (also owned by Griffin), and that Griffin kicked back substantial portions of those payments to Grundy. In his plea agreement, Grundy admits that he was receiving kickbacks of funds that were supposed to be used for the benefit of the participants of HealthChoice insurance programs.
Grundy faces a maximum of twenty years in prison, a fine of up to $250,000, and forfeiture of the unlawful payments he received.
United States Attorney McQuade said, "The citizens of Wayne County deserve honest services from their public officials. It is particularly offensive when corruption comes from officials entrusted to promote health and welfare. We will continue to prosecute public officials who enrich themselves instead of serve the people.”
FBI Special Agent in Charge Robert D. Foley III said, "We will aggressively pursue public officials like Michael Grundy who are charged with promoting the health and welfare of our citizens, but who instead corruptly use their positions of power for self-gain."
"Grundy abused his powers by utilizing his positions to discreetly conduct illegal activities and receive kickbacks," said IRS-CI Special Agent in Charge Erick Martinez. "IRS-CI is committed to following the money trail to ensure that public officials who use their office to line their own pockets are brought to justice and deprived of their ill-gotten gains."
The case was investigated by agents of the FBI and IRS. This case is being prosecuted by Assistant United States Attorneys Elizabeth A. Stafford, Gjon Juncaj and Chantale Fiebig.
Former New Jersey Return Preparer Sentenced for Tax FraudRead the Press Release
Ashraf Hassan-Gouda, a former resident of Mays Landing, N.J., was sentenced today in U.S. District Court for the District of New Jersey to 541 days in prison, the Justice Department and the Internal Revenue Service (IRS) announced today. The approximately 18 month sentence is for time served. Previously, Hassan-Gouda had pleaded guilty to willfully assisting in the preparation of a false federal individual income tax return for a client.
According to court documents, in 2003, Hassan-Gouda was the owner of Tax World, a tax preparation business located in Atlantic City, N.J. He prepared the false tax return for the client at his business. Hassan-Gouda was indicted in 2007 and fled to Egypt. In 2012, Hassan-Gouda was extradited to the United States from Germany.
The case was investigated by IRS-Criminal Investigation, and prosecuted by Tax Division Trial Attorneys Yael Epstein, Thomas Voracek and Shawn Noud.Former Maverick County Commissioner Rodolfo Bainet Heredia Enters Guilty Plea in Connection with A Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
In Del Rio this afternoon, former Maverick County Precinct Two Commissioner Rodolfo Bainet Heredia, age 54, of Eagle Pass, Texas, pleaded guilty to federal charges in connection with an alleged bribery, kickback and bid-rigging scheme, announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
Appearing before United States District Judge Alia Moses, Heredia pleaded guilty to one count of receiving a bribe by an agent of an organization receiving federal funds. By pleading guilty, Heredia admitted that in 2010 and 2011, he manipulated the bidding process to guarantee that contractors he chose would be awarded Maverick County construction contracts. Furthermore, Heredia admitted that he instructed the private contractors to submit inflated bids to Maverick County in order to ensure the availability of sufficient funds to perform the construction work, make a profit, and also to pay him bribes. According to court records, Heredia collected thousands of dollars in bribes while Maverick County suffered losses estimated between $200,000 and $400,000 as a result of Heredia’s scheme.
Heredia, who has remained in federal custody since his arrest last October, faces up to ten years in federal prison and a maximum $250,000 fine. In addition, Heredia has agreed to pay any and all restitution to be determined by the Court resulting from his illegal conduct as Maverick County Commissioner in 2010 and 2011 as well as any and all federal taxes owed to the United States for calendar years 2010, 2011, and 2012. Sentencing is scheduled for 9:00 am on November 25, 2013.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741.
Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
Former Computer Company Ceo Fined $5 Million and Sentenced to Two Years in Prison for Consipracy, Securities Fraud, Money LaunderingRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Michael E. Peppel, 46, former Chief Executive Officer of MCSi, Inc., a computer sales company formerly headquartered in Dayton, was sentenced in U.S. District Court here today to two years in prison followed by three years of court supervision for engaging in a deliberate scheme to defraud millions of dollars from company investors by improperly reporting company revenues. He was also fined $5 million.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Division (FBI); Kathy Enstrom, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS) and Christopher T. White, Assistant Inspector in Charge, Cincinnati Field Office, U.S. Postal Inspection Service announced the sentence handed down today by Senior U.S. District Judge Sandra S. Beckwith.
Peppel pleaded guilty in August 2010 to one count each of conspiracy, securities fraud, and money laundering.
Peppel falsified company accounting records and financial statements to mislead investors about the company’s dire financial situation. “Through his calculated conduct, Mr. Peppel undermined the core principle upon which American equity markets and investors rely – the need for complete, accurate and truthful information,” Assistant U.S. Attorneys Dwight Keller and Brent Tabacchi wrote in a filing with the court prior to sentencing.
Peppel was ordered to forfeit three pieces of real property, the contents of bank and investment accounts, a$20,000 Italian oil painting and a $9,000 Italian bronze sculpture that represent the proceeds traceable to the crimes.
MCSi called itself North America’s premier reseller of advanced integrated computer technology and visual communications products for business, government and educational institutions. MCSi was formerly listed on the NASDAQ stock market, until it was delisted in April 2003. In 2001, the firm’s annual sales exceeded $810 million, it maintained offices at 160 locations, had 50,000 clients and had over 1,300 employees. In 2003 it filed for bankruptcy.
Stewart commended the efforts of the agents and investigators of the IRS, U.S. Postal Inspection Service and FBI for their in-depth investigation into this matter, and Assistant U.S. Attorneys Dwight Keller and Brent Tabacchi, who represented the United States in the case.
Former Atlanta Public Schools Chief Information Officer Indicted for Accepting KickbacksRead the Press Release
Accused of Awarding Computer Contract to Bidder in Exchange for Bribes
ATLANTA – Jerome Oberlton and Mahendra Patel have been arraigned for allegedly receiving kickback payments in exchange for Oberlton using his influence as Chief Information Officer for Atlanta Public Schools to award a $780,000 computer project.
“As the Chief Information Officer for APS, Oberlton was entrusted with overseeing a program designed to centralize student data,” said United States Attorney Yates. “Rather than ensuring that venders were selected based upon what was best for the school system the defendants are charged with using Oberlton’s public position to line their private pockets.”
“Abusing one’s position of public trust for personal gain should not and will not be tolerated,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “The FBI, in designating public corruption matters as its number one criminal programs priority, asks that anyone with information regarding such activity to contact their nearest FBI field office.”
“What started as a friendship between Mr. Patel and Mr. Oberlton resulted in them lining their pockets with funds obtained illegally through kickbacks,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. We are committed to ‘following the money trail’ to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
According to United States Attorney Yates, the indictment, and information presented in court: Jerome Oberlton was the Chief Information Officer (CIO) for Atlanta Public Schools (APS) between June 2004 and August 2007 and had overall management responsibility for APS’ information technology program. In January 2007, APS issued a request for proposal for a data warehousing project for the school system. The project’s intent was to centralize information relating to APS operations, including student information, by storing it digitally in a secure, easily-accessible manner.
The indictment charges that from the start of the project in January 2007, Oberlton influenced the request for proposal process and ultimately caused the winning bidder to be selected in exchange for kickbacks paid to Oberlton and Patel, who was an acquaintance of Oberlton. In order to hide the bribes, Oberlton created Global Technology Partners and later Global Technology Services and funneled the bribe payments through these shell companies. Oberlton was able to conceal his ownership of Global Technology Partners and Global Technology Services from APS. In contrast, the kickbacks to Patel were disguised as sales commissions for non-existent consulting work. The computer company ultimately paid approximately $60,000 in bribes to Oberlton and Patel for nearly six months and in return the IT company received almost $800,000 in APS project work.
Oberlton, 47, of Dallas, Texas, and Patel, 45, of Kennesaw, Ga., were indicted on May 28, 2013. The defendants are charged with conspiracy to defraud APS, which carries a maximum term of five years in prison and a fine of $250,000. They also are charged with conspiracy under color of official right, a money laundering conspiracy, mail fraud, and wire fraud, which each carry a maximum term of 20 years in prison and a fine of $250,000. Oberlton additionally is charged with bribery and money laundering, which each carry a statutory maximum penalty of 10 years in prison and a $250,000 fine. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
The defendants made their initial appearances on June 4, 2013, before United States Magistrate Judge Russell Vineyard and were released on a $25,000 bond.
The public is reminded that criminal charges are only allegations. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
These cases are being investigated by Special Agents of the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
Assistant United States Attorneys Kurt R. Erskine and Jill E. Steinberg are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Forest Man Sentenced for Drug ConspiracyRead the Press Release
Jackson, Miss - Willie Carlos Johnson a/k/a Carlos, 25, of Forest, Mississippi, was sentenced on June 3, 2013 by U. S. District Judge Carlton W. Reeves to 120 months in federal prison followed by five years of supervised release for conspiracy to possess with intent to distribute more than 50 grams of methamphetamine in the Brusha Community of Scott County. Johnson was also ordered to pay restitution in the amount of $600.00 to the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Johnson was indicted following an extensive investigation, dubbed “Operation Brusha” targeting illegal narcotics distribution in Scott County, Mississippi. He pled guilty on March 4, 2013.
This case was investigated by the Bureau of Alcohol, Tobacco Firearms and Explosives, Homeland Security Investigations and Mississippi Bureau of Narcotics with assistance from the Forest Police Department, Scott County Sheriff’s Department, Mississippi Highway Patrol, and Mississippi Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Erin O. Chalk.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Fish Processing Company, "Omega Protein, Inc." Sentenced for Environmental CrimesRead the Press Release
NORFOLK, Va. – Omega Protein, Incorporated (“Omega”) headquartered in Houston, Texas, with operations in Reedsville, Virginia, was sentenced today in United States District Court in Norfolk, Va. for two violations of the Clean Water Act stemming from its activities in the menhaden fishing industry. Omega was sentenced to 3 years of probation and financial penalties totaling $7.5 million.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Otis E. Harris, Jr., Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region and David G. McLeod, Jr., Special Agent in Charge of the Environmental Protection Agency’s (EPA) Criminal Investigation Division, Philadelphia Area Office made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
“Omega Protein’s conduct both harmed our environment and violated federal law,” said United States Attorney Neil H. MacBride. “Today’s sentence, with its significant financial penalty, reflects the seriousness of these charges and our commitment to protecting the waterways of the Eastern District of Virginia.”
“The defendant put wildlife and aquatic life at risk in our nation's largest estuary by illegally discharging non-permitted fish processing waste and oily wastewater directly into the Chesapeake Bay and the Atlantic Ocean,” said Special Agent McLeod, who is in charge of EPA’s criminal enforcement program for the Middle Atlantic States. “Today's sentence should serve as a strong deterrent and further demonstrates our resolve to vigorously prosecute those who despoil our natural resources by cutting corners and handling waste illegally. We will continue to collaborate with the Coast Guard and other federal, state and local partners to investigate and prosecute those who violate our nation's environmental laws.”
“As guardians of the maritime environment, the Coast Guard is charged with preserving our nation’s natural resources for future generations,” said Rear Admiral Steven Ratti, District Commander for the Fifth Coast Guard District. “Our waterways are one of our nation’s greatest resources, and this case illustrates our commitment to work with our federal, state and local partners to ensure those who commit these types of crimes are held accountable.”
Omega Protein, Inc., is a public company with stock traded on the New York Stock Exchange. According to its website, Omega is one of the world’s leading producers of fish oil and the United States’ leading manufacturer of fish meal. Omega’s products derive from menhaden, a small, oily, Omega-3 rich fish that live off the east coast of the United States.
According to court documents, from May 2008 through September 2010, Omega Protein violated the Clean Water Act through the operation of its fish processing facility in Reedsville, Va. and through the operation of its fishing fleet, also based in Reedsville. Specifically, Omega’s processing facility generated a fish waste known as “Bail” water, the court records indicate. This Bail water consisted of water mixed with fish waste and was permitted to be discharged at a point beyond three nautical miles from the shore, provided it was not mixed with any other chemicals or wastes. According to the statement of facts filed with the Court, Omega combined the Bail water with pollutants generated by the processing operations and a caustic substance. This material was then discharged into the Chesapeake Bay at a point less than three nautical miles from the shore.
The court records further reveal that from April 2009 through September 2010, Omega’s fishing fleet was operated in violation of the Clean Water Act. Omega’s fishing fleet was configured in such a way that permitted the overboard discharge of oily wastewater directly into the sea. The vessels contained pumps in the bilge that were connected directly to the skin of the ship so that the oily waste from the bilge could be pumped overboard. The court records indicate it was the common practice for the Omega vessels to discharge oily wastewater in this manner while on their voyages.This case was investigated by agents from the Coast Guard Investigative Service and the Environmental Protection Agency Criminal Investigation Division. Assistant United States Attorneys Joseph L. Kosky and Olivia Norman, and Special Assistant United States Attorney David Lastra prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.usdoj.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on http://pacer.uspci.uscourts.gov.Federal Grand Jury in Fort Wayne Returns IndictmentRead the Press Release
Fort Wayne, INCThe United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictment on July 25, 2012: Ron Luthe, 45, of Fort Wayne, Indiana, is charged in a single count Indictment with being a felon in possession of a firearm on or about May 8, 2012. This Indictment also seeks the forfeiture of a firearm and a magazine. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Allen County Sheriff’s Department Warrants and Fugitive Division. This case has been assigned to and will be prosecuted by Assistant United States Attorney Tina L. Nommay.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
##END##Edmond Woman Convicted of Health Care Fraud Receives Prison Term and $1.89 Million FineRead the Press Release
Oklahoma City, Oklahoma – Yesterday, FARIDEH HEIDARPOUR, 51, of Edmond, was sentenced by Chief United States District Judge Vicki Miles-LaGrange to serve twelve months and one day in federal prison for her role in committing a health care fraud scheme, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. In addition, Judge Miles-LaGrange ordered that Ms. Heidarpour serve three years of supervised release following her imprisonment, tender a check to the court in the amount of $1 million to reimburse the United States, and pay a $1.89 million fine and restitution of $120,689.84
Ms. Heidarpour pled guilty in August 2012. The evidence showed that from 2005 through 2009, she was the manager, part-owner, and medical biller for the Advanced Clinics located in Oklahoma City, Tulsa, Dallas, and Oakland, California. The majority of patients of the Advanced Clinics were injured United States Postal Workers receiving medical benefits under the U.S. Department of Labor, Office of Workers' Compensation Program (DOL-OWCP). These patients received medical evaluations and physical and occupational therapy for the purpose of obtaining schedule awards from DOL-OWCP for their injury disabilities. Ms Heidarpour fraudulently billed DOL-OWCP for services not rendered, double billing, and manipulated billing codes to obtain higher reimbursements. From October 2006 through December 2009, Ms. Heidarpour personally received over $4.4 million from the Advanced Clinics.
This sentence is the result of an investigation conducted by the United States Postal Service Office of Inspector General and the U.S. Department of Labor Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys Vicki Z. Behenna and Kerry A. Kelly.
Reference is made to public filings for further information.
Eagle Butte Woman Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota woman convicted of two counts of Assault by Striking, Beating and Wounding was sentenced on May 30, 2013 by U.S. Magistrate Judge Mark A. Moreno.
Rae Jean Araujo Cota, a/k/a Rae Jean Slides Off, age 36, was sentenced to 131 days in custody, 12 months of probation, and a $20 special assessment to the Federal Crime Victims Fund.
Araujo Cota was indicted by a federal grand jury on January 16, 2013 for Assault with a Dangerous Weapon. She pled guilty to two counts of Assault by Striking, Beating and Wounding on March 22, 2013. These convictions are the result of two different assaults of the same victim that occurred in Eagle Butte in November and December of 2012.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson.
Araujo Cota was remanded to the custody of the U.S. Marshals Service to begin serving her sentence.
Duquesne Man Sentenced for Role in Counterfeit Credit Card SchemeRead the Press Release
PITTSBURGH - A resident of Allegheny County has been sentenced in federal court to five years probation with a condition of six months home detention, and restitution in the amount of $33,988.33 on his conviction of conspiracy to use counterfeit credit cards, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on Devin Alexander Murphy, 24, of Duquesne, Pa.
According to the information presented to the court, between June, 2010 through June, 2011, Murphy, along with his co-defendants Rayvon Oscar Kyles and Janie Beys used counterfeit credit cards at Walmart stores in Western Pennsylvania to purchase merchandise.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Inspectors from the United States Postal Inspection Service along with agents from the United States Secret Service who, as part of the Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of Murphy. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police, conducted the investigation that led to the prosecution of Murphy.
Drug Dealer SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Adrian Leary, age 33, of Eatonville, Florida, was sentenced on June 3, 2013 to 105 months in prison to be followed by four (4) years of supervised release after pleading guilty to Possession with Intent to Distribute Cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(B)(ii)(II) and Title 18, United States Code, Section 2. The Honorable Hugh Lawson, United States District Judge, sentenced Mr. Leary in Valdosta, Georgia.
In entering of his plea of guilty on February 22, 2013, Mr. Leary admitted that on August 18, 2012, in an effort to evade law enforcement while driving southbound on Interstate 75, he drove at speeds exceeding 100 miles per hour. Mr. Leary admitted damaging two vehicles during the pursuit after exiting Interstate 75. Mr. Leary was apprehended shortly after his attempt to flee the second crash site. A search of the vehicle revealed 525.7 grams of cocaine which were seized and tested by the Drug Enforcement Administration.
“Mr. Leary’s actions both as he distributed cocaine and as he recklessly fled from the Sheriff’s deputies, put the public in danger. He won’t be a threat to public safety while he is in federal prison,” said U.S. Attorney Michael Moore.
The case was investigated by the Drug Enforcement Administration and the Lowndes County Sheriff’s Office. Assistant United States Attorney Peter Leary, who is not related to the defendant, handled the prosecution for the Government.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2602.
Doctor Arrested and Charged with Selling Oxycodone Prescriptions for Cash, Wine and Designer HandbagsRead the Press Release
SAN DIEGO – Physician William Joseph Watson was arrested and charged today with selling prescriptions for thousands of Oxycodone pills and other highly addictive painkillers without any legitimate medical purpose. Watson allegedly sold the prescriptions to addicts, who then used them recreationally, sold them on the street, or traded them for heroin.
According to a complaint filed in federal court today, Watson accepted thousands of dollars in cash or luxury goods, such as designer handbags, jewelry and fine wines, in exchange for the Oxycodone prescriptions.
“Prescription drug abuse and overdoses have reached alarming levels,” said U.S. Attorney Laura Duffy. “We are going after those who traffick pharmaceuticals with the same passion we have shown for dismantling the ruthless cartels that deal in cocaine, heroin and methamphetamine.”
“Knowing that prescription drug abuse is a national epidemic, DEA takes the illegal diversion of prescription drugs very seriously,” says DEA San Diego Special Agent in Charge William Sherman.
Oxycodone has become one of the preferred opioid drugs of choice by pharmaceutical drug addicts, the tablets can be crushed, snorted, injected or smoked for a quick, intense high. To prevent abuse, one manufacturer reformulated the 80 milligram pill in 2010, creating a version that could no longer be or smoked. Other versions of the pill, however—including the 30 milligram pill—can still be abused by addicts.
According to the complaint, Watson’s prescription-writing habits raised the suspicions of Drug Enforcement Administration agents, who monitor the type and quantity of medications prescribed through a state tracking system. The complaint alleges that Watson wrote a high volume of prescriptions for Oxycodone, Hydrocodone and Xanax, three of the most highly-abused medications on the market. Most of his patients were young and less likely to need large quantities of these medications. And, Watson routinely prescribed 80 milligram tablets of Oxycodone until they were reformulated. Then he switched to the 30 milligram version.
The complaint alleges that during medical appointments with confidential informants and an undercover DEA agent, Watson demonstrated that he would write a prescription for Oxycodone even though there was no legitimate medical purpose for doing so.
During one medical visit on June 25, 2012 that is described in the complaint, a confidential informant introduced an undercover DEA agent as his girlfriend, saying she was “hurting” and needed some treatment. Watson introduced himself to the so-called girlfriend and said he heard that she needed to come in for some treatment, winking at her while he said the word “treatment,” according to the complaint. During the appointment, Watson never asked to review the DEA agent’s medical records, nor did he inquire about any tests, x-rays or other diagnoses. To the contrary, Watson simply wrote her a prescription for 120 Oxycodone pills.
Under Title 21, United States Code, Section 841, and Title 21, United States Code of Federal Regulations, Section 1306.04(a), a medical doctor may not prescribe a controlled substance unless there is a legitimate medical purpose.
DEFENDANT CRIMINAL CASE NO. 13mj2172 William Joseph Watson Age: 58 Del Mar, CA SUMMARY OF CHARGESCounts 1-21 Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C) – Dispensing
AGENCIES
Controlled Substances Without a Legitimate Medical Purpose. Maximum penalties: 20 years of custody, $1 million fine, life-term of supervised release.U.S. Drug Enforcement Administration
Customer Embezzles $33,072.68 from the United States Postal ServiceRead the Press Release
Richard S. Hartunian, United States Attorney for the Northern District of New York, announced that JOHN GIBSON, III, age 37, of Oswego, N.Y., pled guilty today to the felony offense of Theft of Government Money, before the Hon. Glenn T. Suddaby in the United States District Court in Syracuse, New York. Sentencing for GIBSON is scheduled for October 9, 2013. As a result of the conviction, GIBSON is facing a term of imprisonment of up to ten years, supervised release of up to three years, a fine of up to $250,000, and a special assessment of $100.
GIBSON admitted that he purchased 91 postal money orders with checks drawn on closed checking accounts in the total amount of $33,072.68, in violation of Title 18, United States Code, Section 641.
GIBSON’s prosecution is the result of a joint investigation by U.S. Postal Inspection Service and the United States Postal Service Office of Inspector General. The investigation began in June 2012.
This prosecution was handled in the United States Attorney’s Office by Assistant U.S. Attorney Tamara B. Thomson.
Couple Pleads Guilty in Computer Hacking CaseRead the Press Release
PITTSBURGH - A Mt. Washington couple pleaded guilty in federal court to charges of recklessly damaging a computer and password trafficking, United States Attorney David J. Hickton announced today.
Jonathan Cunningham, 29, and Alyson Cunningham, 25, both of Pittsburgh, Pa., pleaded guilty to two counts of the five-count superseding indictment before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on Nov. 28, 2011, Alyson Cunningham had been fired from a law firm located in Pittsburgh, referred to as "VG," In retaliation for the firing, Matthew West, acting at Alyson and Jonathan Cunningham's encouragement, logged into VG servers using an internal company password provided to him by Alyson Cunningham over Facebook. West utilized a VPN proxy server located in Germany to use the password to access VG servers, so as to shield his identity. Once West accessed the server, he installed software on the server which could be used to capture passwords of anyone on the firm’s network.
On Nov. 29, 2011, West sent a partner at VG law firm an email from the account [email protected] that stated that the firm’s web servers had been compromised, and that their backup files had been copied and deleted. This email, which was used to notify the victim company of the hack caused by the usage of the illegally trafficked password, electronically traveled from West's computer in Pennsylvania, to Google's servers in California, before arriving back at VG's server in Pennsylvania. The email further stated that “we are not interested in ruining your business, but routinely checking that business is fair and just. Our motive is to solely capture and record 100% of Pittsburgh business records and operations and protect it or use it against you as we could if Anonymous had a reason and needed to.” Anonymous is a loosely connected network of computer hacker/activists who are known to intrude upon computer networks for political purposes.
According to the victim company, neither Alyson Cunningham, Jonathan Cunningham, or Matthew West had authority to access their computer server, nor did they have authority to place malware onto VG's servers.
Internet chats indicate that Jonathan Cunningham was actively communicating with West during the hack into VG's servers, providing instruction and suggestions, including suggesting the use of specific VPN servers. When IM chatting with West on the night of the hack, Jonathan Cunningham and Alyson Cunningham alternated in their use of Alyson’s Skype account when communicating with West about the hack.
Judge Cercone scheduled sentencing for Oct. 15, 2013, 2013 at 10:00 and 10:30 a.m. The law provides for a total sentence of two years in prison, a fine of $200,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Pending sentencing, the court continued the Cunningham's on bond.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Jonathan and Alyson Cunningham.
Colorado Man Sentenced for LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Colorado Springs, Colorado man convicted of larceny was sentenced on May 30, 2013 by U.S. Magistrate Judge Veronica L. Duffy.
Scott Stewart, age 19, was sentenced to one year probation and ordered to pay $332 in restitution and $25 to the Federal Crime Victims Fund.
Stewart was indicted for larceny by a federal grand jury on November 19, 2012. The charge relates to Stewart stealing the credit card of another person at Ellsworth Air Force Base and making withdrawals on September 9, 2012. Stewart pled guilty to the charge on March 28, 2013.
This case was investigated by the U.S. Air Force. Assistant U.S. Attorney Wayne Venhuizen prosecuted the case.
Chief Executive Officer of ACI Capital Group Charged with Wire FraudRead the Press Release
BROOKLYN, NY – Fredrick Douglas Scott, 29, was arrested this morning on charges that he engaged in a wire fraud conspiracy to steal hundreds of thousands of dollars from investors. Scott was the Chief Executive Officer of ACI Capital Group LLC (ACI), an investment advisor registered with the Securities and Exchange Commission (SEC) since July 2011. To implement his scheme, Scott allegedly lied to potential investors to induce them to wire funds to one of ACI’s bank accounts, which Scott then stole. To date, investigators have identified at least $750,000 in investor losses caused by Scott. If convicted, Scott faces up to 20 years’ imprisonment on the fraud charge, as well as a fine equal to double the investors’ losses and mandatory restitution to the victims.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
According to the complaint unsealed this afternoon, ACI was founded by Scott in 2009, and purported to be an investment banking and advisory firm with an office located at 477 Madison Avenue, New York, New York. ACI registered as an Investment Advisor with the SEC in July 2011 and, pursuant to its most recent regulatory filing, claimed to manage $3.7 billion in assets. While Scott touted his bona fides as an investor to potential clients, including distributing the May 2010 issue of Ebony magazine, which described him as “the youngest African American hedge fund founder in history,” in reality, Scott used ACI to execute two related fraudulent schemes, causing hundreds of thousands of dollars in losses.
As detailed in the complaint, in connection with the first scheme, Scott worked with intermediaries or finders to locate potential victims. Once a potential victim was identified, Scott promised victims a high rate of return for providing short-term financing to businesses purportedly associated with ACI. In connection with the second scheme, Scott enticed his victims to make up-front deposits with ACI as collateral for favorable loans to the victims. In both schemes, once victims wired money to ACI, Scott stole the funds for his personal use. Bank records show that Scott used client funds to purchase personal items at Louis Vuitton, the Apple Store, Starbucks, Fair Bail Bonds, True Religion Jeans, Tao Restaurant, the Hampton Inn SoHo, and Dizzy's Coca-Cola Club, among others. Bank records also show that Scott wired stolen client funds to his personal checking account.
“Fredrick Douglas Scott wanted a place in history, but tried to secure that spot with stolen money rather than honest work. As alleged, instead of delivering real value to his clients, he devoted his energy to schemes to steal their money, using their investments as his own personal piggy bank. Effective law enforcement action shut down his schemes, and the defendant will now face justice. We are committed to protecting the public from the effects of fraud,” stated United States Attorney Lynch. “I would like to thank our partners at the FBI for their swift action and effective work on this important investigation.”
FBI Assistant Director-in-Charge Venizelos stated, “As alleged, the defendant was more creative in touting his own abilities as an investment strategist than he was at actually investing clients’ money. In actuality, he was a con man who induced victims to part with their money by promising high returns, and then squandered their money on himself.”
The defendant is scheduled to be arraigned this afternoon before United States Magistrate Judge Steven M. Gold at the federal courthouse in Brooklyn. The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency task force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The government’s case is being prosecuted by Assistant United States Attorney James P. Loonam.
The Defendant:
FREDRICK DOUGLAS SCOTT
Age: 29Cambria County Man Pleads Guilty in Marijuana Trafficking ConspiracyRead the Press Release
JOHNSTOWN, Pa. - A resident of Elmora, Pa., pleaded guilty in federal court to a charge of conspiracy to distribute and possess marijuana, United States Attorney David J. Hickton announced today.
Joshua V. Bradley, 36, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from March 2009 to May 9, 2011, Bradley conspired to distribute and possess with the intent to distribute 100 kilograms or more of marijuana. In addition, evidence presented to the court at the time of Bradley's guilty plea reflected that Bradley conspired with George M. Lowmaster and others to facilitate and promote Lowmaster's drug distribution organization.
Judge Gibson scheduled sentencing for Oct. 31, 2013, at 10:30 a.m. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Bradley on bond.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
A joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, conducted the investigation that led to the prosecution of Bradley. Other agencies participating on the task force include the Internal Revenue Service-Criminal Investigation; Pennsylvania State Police; the Pennsylvania Attorney General's Office; the Cambria County District Attorney's Office; the Carrolltown Police Department; the Patton Police Department; the Ebensburg Police Department; the Portage Police Department and the Paint Township Police Department.
California Man Charged with Emailing Rape ThreatRead the Press Release
PITTSBURGH - One resident of La Jolla, Calif., has been indicted by a federal grand jury in Pittsburgh on a charge of sending a threat via email, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on May 7 and unsealed last week, named Karthikeyan Natarajan, 26, of La Jolla, California, as the sole defendant.
According to the indictment, on or about April 5, 2013, Natarajan sent an email to L.S. threatening to rape her.
The law provides for a maximum total sentence of 5 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 Amy L. Johnston is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Carnegie Mellon University 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.
Butler Charged Federally for Schenectady Arson Resulting in Four DeathsRead the Press Release
Albany, New York – United States Attorney Richard S. Hartunian and Special Agent-in- Charge Joseph Anarumo, Jr. of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives announce that a federal criminal complaint filed today charges Robert A. Butler, 27, with arson resulting in personal injury and death, in violation of Title 18, United States Code, Section 844(i). The affidavit in support of the complaint alleges that on or about May 2, 2013, Butler used gasoline to start a fire at 438 Hulett Street, Schenectady, New York, resulting in the destruction of the building and its contents and the deaths of four people: David Terry, age 32, and three children: Michael Terry, age 3; Layah Terry, age 2; and Donovan Duell, who was 11 months old, and put Safyre Terry, age 5, in the hospital with severe injuries. There is federal jurisdiction over the arson because the building at 438 Hulett Street was a rental property not occupied by the owner and the U.S. Supreme Court has determined that such rental of real estate is an activity that affects interstate commerce.
A criminal complaint is merely an accusation and Butler is presumed innocent unless and until proven guilty. Trial on a federal felony charge must be premised upon an indictment by a grand jury. If indicted and then convicted, Butler faces a maximum sentence of a fine of up to the greater of $250,000 or twice the gross pecuniary loss to victims, and up to life imprisonment or the death penalty. No decision has been made by the Department of Justice regarding whether to seek the death penalty in this case; that determination is ultimately made by the Attorney General of the United States.
Butler’s had his initial appearance this afternoon and was remanded to custody until a detention hearing on Monday, June 10, 2013, at 1:30 p.m.
The investigation which led to this indictment was conducted by the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the Schenectady Police Department, and the Schenectady Fire Department. The case is being prosecuted by First Assistant U.S. Attorney Grant C. Jaquith and Assistant U.S. Attorney Wayne Myers.
Schenectady County District Attorney Robert M. Carney said: "Shortly after the arrest of Robert Butler on charges of Arson in the First Degree, I asked the United States Attorney to consider the case for federal prosecution. I did so for several reasons. Federal jurisdiction is always a possibility with significant arson cases and the federal Bureau of Alcohol, Tobacco, Firearms and Explosives was already investigating this case along with the Schenectady Police and Fire Departments. Second, there are significant procedural differences between the state and federal systems regarding the type of evidence which must be presented to a Grand Jury that I believed favored consideration of federal prosecution in this case given the ongoing nature of this investigation by law enforcement and the necessity of moving forward expeditiously. Finally, there are sentencing enhancements possible in the federal system that would more appropriately address the harm caused by this criminal act, beyond the maximum sentence of 25-life Mr. Butler would face if he were to be convicted of murder in the second degree and arson in the first degree in state court. I thank Mr. Hartunian for his willingness to go forward with this prosecution and am grateful that I have always been able to count on him for collaboration and assistance in fulfilling our mutual obligations to safeguard our communities."
United States Attorney Richard S. Hartunian said, “The horrible tragedy that occurred at 438 Hulett Street on May 2 nd cried out for the dedication and collaboration of all of law enforcement and fire investigators in the pursuit of justice for the victims of the fire and the person who set it, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Schenectady Police Department, and the Schenectady Fire Department immediately responded with the thorough investigation which led to this federal charge. We thank District Attorney Carney for his leadership and the work of his office in the immediate aftermath of the fire. We are committed to continuing the investigation and the federal prosecution until justice is done.”
ATF Special Agent-in-Charge Joseph Anarumo, Jr. said, “Arson is a reprehensible crime and is even more heinous when small children are killed as a result. I take comfort in knowing that the dogged investigative efforts of the ATF, the Schenectady Police Department and the United States Attorney's Office has resulted in an arrest today. The deaths of those victims will not be in vain and the alleged actions of the defendant will now be addressed in a court of law.”
Schenectady Police Chief Brian Kilcullen said, “The investigation into last month's Hulett Street fatal fire was and remains a collaborative effort between local, state, and federal law enforcement agencies. We will continue to dedicate any necessary resources to the United States Attorney's Office to assist in the prosecution of this matter in federal court.”
Inquiries may be addressed to First Assistant U.S. Attorney Grant C. Jaquith at (518) 431- 0247.
Brighton Man Pleads Guilty to Defrauding InvestorsRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that John Zdanecis, 78, of Brighton, N.Y., pleaded guilty before U.S. District Judge Charles G. Siragusa, to mail fraud. the charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that the defendant solicited investors to participate in a commodities trading pool, Comtra Limited, that he controlled. Zdanecis then used most of the money for personal and business expenses, and did not invest it in commodities as promised. To conceal his scheme, the defendant sent his investors periodic account statements that were false and misrepresented the true condition of the investments. As a result of the fraud, investors lost more than $160,000.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel.Sentencing is scheduled for September 25, 2013, at 10:00 a.m. before Judge Siragusa.
Boise Man Sentenced in Federal Court for Illegally Possessing FirearmRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today that Travis Gayle Smith, 40, of Boise, Idaho, was sentenced to 36 months in prison followed by three years of supervised release for the unlawful possession of a firearm. Smith was sentenced today in United States District Court by U.S. District Judge Edward J. Lodge.
According to the plea agreement, officers searched Smith’s residence on July 20, 2012, and located a Mossberg 12 gauge slide-action shotgun and ammunition. Smith admitted he possessed the shotgun. Smith is prohibited from possessing firearms because he was previously convicted of the felony crime of aggravated battery in 2005, in Ada County, Idaho. Smith was on parole for that crime at the time he possessed the shotgun.
The case was investigated by the Idaho Department of Correction Probation and Parole, Ada County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Blackfoot Man Indicted for Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Blackfoot, South Dakota man has been indicted by a federal grand jury for Abusive Sexual Contact.
Ta-Sunka-Hinz Thunder Hawk, age 18, was indicted by a federal grand jury on May 15, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 30, 2013 and pled not guilty to the indictment.
The maximum penalty upon conviction is 3 years of custody; a $250,000 fine, or both; a minimum of 5 years up to life of supervised release; a $100 special assessment; and restitution.
The charges relate to the alleged assault of a victim that occurred in La Plant, South Dakota in March of 2013. The charge is merely an accusation, and Thunder Hawk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Thunder Hawk was released on bond pending sentencing. No trial date has been set.
Bank Robber Known as the “Insistent Bandit” Pleads Guilty to Six Counts of Bank RobberyRead the Press Release
Steve Edward Ruby, the serial bank robber known as the “Insistent Bandit,” pleaded guilty today before U.S. District Court Judge William Q. Hayes to six counts of bank robbery and one count of attempted bank robbery.
In one of the robberies, Ruby was seen riding a woman’s red mountain bike and wearing a long-sleeve T-shirt with the logo, “Bite Me.” He was known for approaching tellers with a loud and demanding tone, often lifting his shirt to reveal a gun tucked inside his waistband and insisting, “I am armed. I have a gun. Give me all your money.”
In his plea agreement, Ruby admitted he robbed the same bank - Pacific Western Bank located at 9955 Mission Gorge Road in Santee – two times in January, taking a total of $3,103. When he attempted to rob the same bank a third time on February 14, 2012, tellers recognized him and refused to let him in.
In the first robbery, Ruby admitted he told the teller: “This is a robbery. I am not kidding. I have a gun. I’ll shoot (use) it. Give me all your loose money.” When he returned the second time, the plea agreement said, he terrorized the same teller, saying in a loud voice: “We’re going to do this again! Give me all your loose bills starting with your third drawer and no bait!”
Ruby also admitted to robbing four additional banks in February, including the Home Bank of California located at 875 Garnet Avenue in San Diego, taking a total of $607; US Bank at 9643 Mission Gorge Road in San Diego, taking a total of $1,211; a different branch of the Pacific Western Bank located at 368 Broadway in El Cajon, taking a total of $1,432; and the Wells Fargo bank located at 6670 Montezuma Road, in San Diego, taking a total of $9,903. The grand total was $16,246.
Ruby is scheduled to appear for sentencing before Judge Hayes on September 3, 2013 at 9:00 a.m.
Ruby had an accomplice, Spiros Romensas, who acted as Ruby’s getaway driver during two of the February bank robberies. Romensas was convicted of two counts of aiding and abetting bank robbery on April 18, 2013, after a jury trial. Romensas is scheduled to appear for sentencing before Judge Hayes on July 15, 2013 at 9:00 a.m.
Ruby was caught after FBI agents issued an alert for a maroon truck seen leaving the banks after a number of the robberies. A sheriff’s deputy conducting other business at the A-American Storage facility on Greenfield Drive in El Cajon saw what he believed to be the maroon truck parked at the storage facility and contacted the managers of the business to determine the truck’s owner.
The managers identified Romensas as the owner of the truck and identified Romensas’ friend, Steve Ruby, as a frequent passenger in the truck.
The driver’s license photo of Ruby matched the bank surveillance photos of the robber. Surveillance footage taken on February 21, 2012 from A-American Storage depicts Ruby loading a red bicycle into the back of Romensas’ truck while wearing a white shirt with the words “Bite Me” on it in big red lettering. Ten minutes later, Ruby is captured on surveillance footage from the Pacific Western Bank riding a red bike up to the bank, wearing the “Bite Me” shirt.
DEFENDANTS Case Number: 12CR01073-WQH Steve Ruby
Spiros Romensas Age: 54
Age: 53 El Cajon, CA
La Mesa, CA SUMMARY OF CHARGESCounts 1-7 – Title 18, United States Code, Section 2113(a) – Bank Robbery and Attempted Bank Robbery; Maximum Penalties - 20 years imprisonment and $250,000 fine
INVESTIGATING AGENCIESFederal Bureau of Investigation Violent Crimes Task Force
3 June 2013
Wyoming Woman Charged with Two Counts of Assault Resulting in Serious Bodily InjuryRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced that on May 23, 2013, Cecelia Gayle Shakespeare, aka Cecelia Gayle Ferris, a 28-year-old Northern Arapaho Tribal Member, was charged in an indictment with two counts of assault resulting in serious bodily injury in violation of 18 U.S.C. §§ 113(a)(6) and 1153. The charges against Ms. Shakespeare stem from an incident that occurred on February 8, 2012 on the Wind River Indian Reservation. This case is being investigated by the Federal Bureau of Investigation. An indictment is only an accusation. In every criminal case, the accused is presumed to be innocent until proven guilty, and the government always has the burden of proving guilt at trial beyond a reasonable doubt.
Waterloo Shooter to Federal Prison for Gun, Drug ChargesRead the Press Release
A Waterloo man who shot another individual in October 2012 was sentenced today to more than 21 years in federal prison.
Amos Dee Deering, Sr., age 31, from Waterloo, Iowa, received the prison term after a February 25, 2013 guilty plea to possessing a firearm in furtherance of a drug trafficking crime, possession with intent to distribute crack cocaine, and being unlawfully in possession of a firearm as a felon, domestic abuser, and drug user.
Evidence at an earlier hearing showed that in the early morning of October 19, 2012, Deering fought with another individual at a residence in the 400 block of Lane Street in Waterloo, Iowa. During the fight Deering shot the other individual in the upper torso. After fleeing the scene of the shooting, Deering drove to Singing Bird Lake park, but left the park only a few minutes later. Deering’s car was stopped and he was detained on suspicion of drunk driving. Officers returned to the park and, under a bush, found a discarded sock containing a pistol and some crack cocaine. Forensic tests later matched the firearm found inside the sock to a shell casing found at the scene of the shooting. Deering had previously been convicted of first degree burglary, felony eluding, and domestic abuse causing bodily injury.
Deering was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Deering was sentenced to 261 months’ imprisonment. A special assessment of $300 was imposed. He must also serve an eight-year term of supervised release after the prison term. There is no parole in the federal system.
Deering is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dan Chatham and was investigated by the Waterloo Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 6:13-CR-02002-LRR.
Virginia Contractor Sentenced to 26 Months in Prison for Cheating Elderly Woman Out of More Than $170,000-Victim, 93, Suffers from Memory Issues-Read the Press Release
WASHINGTON – James F. Butler, 52, a contractor from Culpeper, Va., was sentenced today to 26 months in prison and ordered to pay restitution to an elderly woman he tricked into paying more than $170,000 for home improvements that were not performed, announced U.S. Attorney Ronald C. Machen Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Butler pled guilty in November 2012 in the Superior Court of the District of Columbia to a charge of first-degree theft of a senior citizen. He was sentenced by the Honorable Gerald I. Fisher. Judge Fisher ordered Butler to pay $174,471 in restitution to the victim. Upon completion of his prison term, Butler will be placed on three years of supervised release.
According to a factual proffer, signed by the defendant as well as the government, Butler wrongfully obtained the money between December 2011 and February 2012 from the victim, who was then 93 years old and residing alone in Northwest Washington. The victim has memory issues that are readily apparent to anyone having a conversation with her.
Butler met the victim at her home in December 2011. He and his workers asked her to execute multiple contracts for home improvement work. He then falsely represented that the victim owed him money for home improvement labor that was not performed, and for materials that were not installed. He and others told the victim that payments were due for material and labor a total of 38 times during a period of just one and a half months.
Although Butler performed some work and provided some materials at the residence, it was for a fraction of the cost that the victim ultimately paid.
From Dec. 24, 2011 through Feb. 12, 2012, the victim wrote multiple checks for home improvement work to the defendant. On some occasions, Butler would have her write him multiple checks on the same day, knowing that she did not remember already paying him. All told, Butler unlawfully obtained $174,471 from the victim.
Butler is the owner of Nationwide Tree Specialists, a tree and stump removal business that is operated out of his home in Culpeper. He is not licensed as a general contractor in the District of Columbia or elsewhere.
A financial advisor who did work for the victim noticed the payments and the matter was brought to law enforcement’s attention. Butler was arrested at his home in April 2012.
“As our population grows older, we see more and more cases of scam artists exploiting the elderly,” said U.S. Attorney Machen. “The U.S. Attorney’s Office has focused on both education and prosecution to fulfill our moral responsibility to protect our older neighbors from shady operators who try to take advantage of them. This prosecution demonstrates the importance of reporting elder financial abuse so that we can prevent fraudsters from creating more victims.”
“It is shameful that this criminal preyed on a vulnerable member of our community,” said Chief Lanier. “Hopefully, this sentencing will send a message to other would be thieves and con artists.”
In announcing the sentence, U.S. Attorney Machen and Chief Lanier praised the work of the Metropolitan Police Department, including the detective in the financial crimes and fraud squad who investigated the case. They also expressed appreciation for the assistance provided by the Virginia State Police, City of Culpeper Police, and a regional law enforcement task force from Virginia. Finally, they acknowledged the efforts of Assistant U.S. Attorney Stephanie G. Miller, who prosecuted the matter.
13-191Virginia Charter Fishing Captain Sentenced for Lacey Act ViolationRead the Press Release
NORFOLK, Va. – William W. Lowery, IV, 44, of Tappahannock, Va., was sentenced to 30 days’ imprisonment today for violating the Lacey Act by trafficking in illegally-harvested striped bass. After serving his sentence, Lowery will be placed on supervised release for one year. Lowery is prohibited from engaging in the charter fishing industry in any capacity during the term of his supervised release. Lowery was also sentenced to pay a $5,000 fine, pay $1,300 in restitution to the National Oceanic and Atmospheric Administration for the illegally-harvested striped bass, and surrender his Captain’s license for life.
Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, made the announcement after the sentence was pronounced by U.S. District Judge Henry C. Morgan, Jr.In a statement of facts filed with his plea agreement, Lowery admitted that on January 15, 2010, he took a charter fishing trip into the Exclusive Economic Zone (EEZ) to fish for Striped Bass, knowing that it was illegal to fish for Striped Bass in the EEZ. When Lowery’s boat, the Anna Lynn was approached by law enforcement, Lowery attempted to flee. When the Anna Lynn was caught, law enforcement officers observed a plastic trash barrel with thirteen (13) Striped Bass floating in the water near the Anna Lynn. The trash barrel had been thrown overboard from the Anna Lynn during the pursuit, and the Striped Bass contained within the trash barrel had been harvested by fishermen aboard the Anna Lynn within the EEZ.
This case was investigated by the National Oceanic and Atmospheric Administration, Fisheries, Office for Law Enforcement, and the Virginia Marine Police with assistance from the Federal Communications Commission Enforcement Bureau, Norfolk, Va. Office. Trial Attorney James B. Nelson of the Department of Justice’s Environmental Crimes Section of the Environment and Natural Resources Division and Assistant U.S. Attorney Stephen W. Haynie from the Eastern District of Virginia are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.U.S. Attorney’s Office to Sponsor Two-Day Conference Highlighting Needs of Children Exposed to Violence-More Than 250 Professionals Expected for Training and Discussion-Read the Press Release
WASHINGTON – The U.S. Attorney’s Office for the District of Columbia is sponsoring a two-day conference this week designed to assist professionals who work with children exposed to violence, U.S. Attorney Ronald C. Machen Jr. announced today.
The conference, made possible through a grant from the Office for Victims of Crime in the U.S. Department of Justice’s Office of Justice Programs, will be held June 5 and June 6, 2013. It will include workshops, panel discussions and presentations for victim service providers, law enforcement officers, and attorneys regarding strategies for working with children and adolescents exposed to violence. Presenters have been drawn from the fields of mental health, law enforcement, social services, prosecution and the judiciary.
U.S. Attorney Machen and Principal Deputy Assistant Attorney General for the Office of Justice Programs Mary Lou Leary are among those who will address the attendees. More than 250 people are expected to attend the event.
The conference sessions will include training in investigating and prosecuting cases involving traumatized youths, as well as discussions about effective therapy and other strategies to help young people cope with the after-effects of violence.
Every year, the lives of millions of children and adolescents in the United States are affected by exposure to violence as they become victims or witnesses to homicides and other violent crimes. Many are murdered or assaulted by loved ones, acquaintances or strangers, and many are caught in the crossfire of gang or community violence.
The consequences of this problem are significant and widespread.Children’s exposure to violence, whether as victims or witnesses, is often associated with long-term physical, psychological, and emotional harm. Children exposed to violence are also at a higher risk of engaging in criminal behavior perpetuating a cycle of violence as victims or offenders.
Addressing the needs of children exposed to violence is a key priority for Attorney General Eric Holder, who launched the Defending Childhood Initiative to address the exposure of America’s children to violence as victims and witnesses.
According to the Attorney General’s Task Force on Children Exposed to Violence, exposure to violence is a “crisis that affects two out of every three of our children. Of the 76 million children currently residing in the United States, violence, crime, abuse and psychological trauma, touch the lives of an estimated 46 million each year.”
“We have few greater moral obligations than protecting our community’s most vulnerable and distressed children,” said U.S. Attorney Machen. “Too many of our children have their innocence shattered and their futures forever changed by exposure to violence. As the U.S. Attorney and as a father, I am excited about this opportunity to come together and discuss how we can better serve and defend our children.”
“True justice depends on whether we’re meeting the needs and honoring the rights of victims and witnesses – especially when those victims and witnesses are our children,” said Principal Deputy Assistant Attorney General Leary. “Through the Defending Childhood Initiative and the task force’s efforts, we are working to improve our understanding of children’s exposure to violence and support efforts to translate that knowledge into practice.”
This week’s conference will be held at the campus of Catholic University of America in Northeast Washington.
The planning committee includes the District of Columbia Department of Mental Health; the District of Columbia Public Schools; the District of Columbia Department of Child and Family Services; the Wendt Center for Loss and Healing; Safe Shores: the D.C. Children’s Advocacy Center, and Child and Adolescent Mobile Psychiatric Services (ChAMPS).
Conference partners include the National Center for Missing and Exploited Children (NCMEC); the Court Services and Offender Supervision Agency (CSOSA); Fair Girls; the Multidisciplinary Team for Child Sexual and Physical Abuse in the District of Columbia; Children’s National Medical Center; the DC Coalition Against Domestic Violence; the National Children’s Advocacy Center, and Break the Cycle.
13-192U.S. Attorney Barry Grissom to Take Part in Indian Country Conference Focusing on Domestic Violence, Sexual AssaultRead the Press Release
KANSAS CITY, KAN. – Barry Grissom, U.S. Attorney for the District of Kansas, will take part in the 2013 Indian Country Conference June 11 and 12 in Sloan, Iowa.
The conference will focus on domestic violence and sexual assault in Indian Country.
“Nearly half of all American Indian women have been physically assaulted, raped or stalked by a partner – and more than one in four have been raped,” Grissom said. “We have much work to do to assure that women and girls in tribal communities are kept safe.”
The conference in Iowa will bring Grissom together with the U.S. Attorneys for Nebraska and the Northern District of Iowa, as well as victim service providers and law enforcement officers from across the Midwest.
Grissom is a member of the Justice Department’s Native American Issues Subcommittee (NAIS). The NAIS is made up of U.S. Attorneys whose districts contain Indian Country or one or more federally recognized tribes. The NAIS focuses exclusively on Indian Country issues, both criminal and civil, and is responsible for making policy recommendations to the Attorney General of the United States regarding public safety and legal issues that impact tribal communities.
Last week, the Justice Department issued a national report showing a 54 percent increase in Indian Country criminal prosecutions since Fiscal Year 2009.
“Across the country, U.S. Attorneys have been focused on fighting crime in Indian Country and reinforcing the bond between federal and tribal law enforcement, which also strengthens the faith that people have in their criminal justice system,” said U.S. Attorney General Eric Holder.
In Kansas, Grissom’s office works with four federally recognized Indian tribes: the Kickapoo, the Prairie Band Potawatomi, the Iowa and the Sac and Fox.
A tribal liaison from Grissom’s office meets regularly with tribal police and leaders of the four tribes in Kansas, as well as local law enforcement officers and state prosecutors who are responsible for investigating and prosecuting state crimes on the reservations in Kansas.
Two Stamford Men Sentenced to Federal Prison for Participating in Illegal Gambling RingRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that two Stamford men involved in illegal gambling businesses were sentenced today by United States District Judge Vanessa L. Bryant in Hartford. THOMAS UVA IV, also known as “Little T,” 32, was sentenced to 21 months of imprisonment, followed by three years of supervised release, and JOHN COLELLO, 54, was sentenced to six months of imprisonment, followed by two years of supervised release. UVA and COLLELLO also were ordered to forfeit $100,000 and $1,000, respectively.
According to court documents and statements made in court, after a long-term investigation led by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation and the Stamford Police Department, UVA, COLELLO and 18 other individuals were charged with various offenses related to their involvement in an illegal Internet sports bookmaking operation and illegal card gambling clubs. UVA is an alleged associate of the Gambino organized crime family.
The investigation, which included the use of court-authorized wiretaps, revealed that UVA, COLELLO and others were involved in a large-scale sports bookmaking operation in which gamblers placed bets with offshore Internet sports-gambling websites, particularly www.44wager.com based in Costa Rica. In addition, UVA and others operated a card gambling club at 514 Glenbrook Road in Stamford, and certain other co-conspirators operated card gambling clubs at 859 East Main Street in Stamford and 2965 State Street in Hamden.
FBI analysis of the sports-betting web site utilized by the co-defendants has determined that the total gross revenues of the Stamford-based gambling operation were nearly $1.7 million from October 2010 to June 2011.
On March 13, 2013, UVA pleaded guilty to one count of conspiring to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO) and one count of money laundering, and COLELLO pleaded guilty to one count of operating an illegal gambling business.
This matter is being investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police. This case is being prosecuted by Assistant United States Attorneys Hal Chen and Peter Jongbloed.
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(203) 821-3722 [email protected]Two Individuals Sentenced in Conspiracy to Distribute Methamphetamine CaseRead the Press Release
COUNCIL BLUFFS, IA- On May 31, 2013, Chandler Prather Robbins, IV, a 31 year-old resident of Oskaloosa, Iowa, was sentenced to 120 months imprisonment for conspiracy to distribute methamphetamine, to be served consecutively with 60 months in prison for possession of a firearm in relation to the drug trafficking offense, announced U.S. Attorney Nicholas A. Klinefeldt. U.S. District Court Chief Judge James E. Gritzner also ordered Robbins to serve a five-year term of supervised release following incarceration. Robbins pled guilty on February 8, 2013, to the charges of conspiring to distribute methamphetamine and possession of a firearm in the Omaha, Nebraska, and Council Bluffs, Iowa area.
Co-defendant Ray Allen Sutton, a 35 year-old resident of Council Bluffs, Iowa, was sentenced to 112 months imprisonment for conspiracy to distribute methamphetamine. Chief Judge Gritzner also ordered Sutton to serve a four-year term of supervised release following incarceration. Sutton pled guilty on January 10, 2013, to the charges of conspiring to distribute methamphetamine in the Omaha, Nebraska, and Council Bluffs, Iowa area.
The convictions resulted from a joint law enforcement investigation into the distribution of methamphetamine from Omaha, Nebraska, into Council Bluffs, Iowa, with final distribution in central Iowa. Robbins and Sutton were arrested on June 9, 2012, for transporting over 10 ounces of pure methamphetamine to be distributed in central Iowa.
The investigation was conducted by the Iowa Division of Narcotic Enforcement, SouthWest Iowa Narcotics Task Force, Mid Iowa Narcotics Enforcement Task Force, and the Polk County Sheriff’s Office. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
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Two Individuals Arrested for Child PornographyRead the Press Release
SAN JUAN, Puerto Rico — On Friday, May 31, two individuals, Leo de la Rosa-Meran and Marisol Rivera-Casillas, were arrested for child pornography charges on separate incidents, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. These two arrests followed investigations from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) special agents, and officers assigned to the Puerto Rico Crimes Against Children Task Force (PRCACTF).
Leo de la Rosa-Meran, a 45 year-old evangelical preacher, was engaging in sexual explicit telephone conversations with two 17 year-old female minors, both of whom he met through his church. According to the investigation, De la Rosa-Meran had requested nude images from both minors, but only one of them sent nude images of herself upon his request. It is also alleged that De la Rosa-Meran sent both female minors nude images of himself, more specifically photos of his penis. The defendant, who is also the owner of the cheese factory named “Chesso,” located in Rio Piedras, was charged via complaint of Production/Attempted Production of Child Pornography. He was brought before U.S. Magistrate Judge Camille Vélez-Rivé for his initial appearance on Friday afternoon, and was ordered temporarily detained. His detention hearing is scheduled for next Wednesday, June 5, at 9:30 am before Judge Vélez-Rivé.
Defendant Marisol Rivera-Casillas, 36, was arrested late Friday evening, May 31, 2013, after ICE-HSI, received information from Puerto Rico Police Department revealing that Rivera-Casillas was engaging in sexual explicit acts with a nine year-old male minor, and was filming it using her cell phone camera.
Rivera-Casillas was brought before U.S. Magistrate Camille Vélez-Rivé for her initial appearance today, upon which she was ordered temporarily detained in the Metropolitan Detention Center in Guaynabo awaiting the outcome of her case. The detention hearing was scheduled for Thursday, June 6, 2013.If convicted, both defendants face a mandatory minimum sentence of fifteen (15) years incarceration and a possible maximum statutory sentence of thrity (30) years incarceration. Both of these cases are being prosecuted by Assistant U.S. Attorney Marshal D. Morgan.
“It is very troubling that in the District of Puerto Rico, during the first 20 weeks of this year, 21 individuals have been individually arrested for child pornography cases,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “Criminals who prey on children are committing unspeakable acts, causing irreparable harm and robbing the innocent of their innocence, and the U.S. Attorney’s Office, along with the federal and state law enforcement partners, will continue to track down these criminals, arrest them and bring them to justice.”
“Predators who victimize innocent children for selfish gratification must know that we will not rest until they are brought to justice,” said Ángel Meléndez, Special Agent in Charge HSI San Juan. “Words cannot describe the harm that these crimes inflict on children. ICE will continue using its unique immigration authorities to identify and arrest those who present a threat to our community. Those criminals in Puerto Rico involved in these despicable crimes should be on notice because we will find you and bring you to justice.”
In response to the need for an island-wide approach to fighting the escalation of predatory crimes against children, HSI San Juan partnered with members of local, state and federal law enforcement, as well as local and state government officials and community leaders, to form PRCACTF in June 2011.
Through PRCACTF, local, state and federal law enforcement agencies work together with local and state government agencies to effectively pool their resources to jointly investigate all crimes against children in Puerto Rico. Through the task force, law enforcement officers are encouraged to share evidence, ideas, and investigative and forensic tools to ensure the most successful prosecutions possible. As such, PRCACTF allows law enforcement to speak with one unified voice in defense of the children of Puerto Rico.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-843-5678.
Twenty-four Defendants Indicted on Federal Drug ChargesRead the Press Release
Investigation Targeted Illegal Distribution of Prescription Pills
A single count indictment returned by a federal grand jury in Nashville, Tennessee last week was unsealed today, charging 24 defendants with conspiring to possess with intent to distribute and distributing diverted prescription pills, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.
The diverted pills contained the controlled substances Oxycodone, Hydromorphone, Oxymorphone, and Buprenorphine. The respective brand names for the pills containing those controlled substances are Roxicodone, Dilaudid, Opana, Oxymorphone, and Subutex.
“Prescription drug abuse and diversion is an epidemic facing our nation,” stated Acting U.S. Attorney David Rivera. “The vast number of people addicted to painkillers and the increasing number of overdose deaths attributable to these illegally obtained drugs is unacceptable. We must continue to combine the resources of our law enforcement agencies and engage our communities to reduce the number of illicit pills available to the public.
“The diversion and abuse of prescription drugs in Tennessee is presently the number one drug threat in the state,” said Michael Stanfill, Assistant Special Agent-in Charge of DEA in Tennessee. “This investigation is an excellent example of federal, state, and local agencies combining resources to attack this issue.”
Local, state and federal law enforcement officers, this morning, began arresting those named in the indictment and were executing nine federal search warrants in connection with the investigation.
Those charged in the indictment are:- Kenneth Edward Stafford, 26, of Lebanon, Tenn;
- Kacee Anne Breeden, 28, of Lebanon, Tenn;
- Rashad Woodside a/k/a “Goma,” 37, of North Miami, Florida
- Nicholas Adam Young a/k/a “Nick,” 26, of Lebanon, Tenn;
- Michael Jordan a/k/a “Billy Bob,” 26, of Watertown, Tenn;
- Ronnie Dustin E. McCulloch a/k/a “Dustin,” 24, of Watertown, Tenn;
- Dereck Scott Weatherspoon, 27, of Mt. Juliet, Tenn;
- William Chad Nixon a/k/a “Chad,” 26, of Lebanon, Tenn;
- Michael Chad Corley a/k/a “Chad,” 31, of Lebanon, Tenn;
- Phillip Wayne Allen, 36, of Lebanon, Tenn;
- Fletcher Denning, 22, of Mt. Juliet, Tenn;
- Amanda Meyers, 28, of Lebanon, Tenn;
- Tammy Bristow, 33, of Castalian Springs, Tenn;
- Anthony Lee Collins, Jr. a/k/a “TJ” 27, of Lebanon, Tenn;
- Marcy Jo Pickler, 32, of Lebanon, Tenn;
- Kyle Oakley, 27, of Mt. Juliet, Tenn;
- Amy Nichole Murphy, 34, of Lebanon, Tenn;
- Caitlin Michelle Gibson a/k/a “Katie Bug,” 21, of Lebanon, Tenn;
- James Lester Massey, 43, of Castalian Springs, Tenn;
- Thomas Roberts, 41, of Lebanon, Tenn;
- Robert Anthony Taylor a/k/a “Tony,” 27, of Lebanon, Tenn;
- Sammie Lanette Crutcher, 28, of Lebanon, Tenn;
- Peter Lewis, 31, of Lebanon, Tenn;
- Ryan Moore a/k/a “Rhino,” 23, of Lebanon, Tenn;
The charged offense carries a maximum penalty of 20 years in prison and a fine of up to $1,000,000.
The case was investigated by the Drug Enforcement Administration, the Lebanon Police Department, the Internal Revenue Service-Criminal Investigation, the Tennessee Bureau of Investigation, the Mount Juliet Police Department, the Wilson County Sheriff’s Department, the Franklin Police Department, and the Clarksville Police Department, the Crossville Police Department, with assistance by the U.S. Marshals Service. The United States is represented by Assistant U.S. Attorney Brent A. Hannafan.
An indictment is merely an accusation and is not evidence of guilt. Defendants are presumed innocent unless and until proven guilty in a court of law.Three Individuals Sentenced in Conspiracy to Distribute MarijuanaRead the Press Release
COUNCIL BLUFFS, IA- On May 31, 2013, Dennis Smith, a 28 year-old resident of Council Bluffs, Iowa, was sentenced to 84 months imprisonment for conspiracy to distribute marijuana and money laundering, announced United States Attorney Nicholas A. Klinefeldt. United States District Court Chief Judge James E. Gritzner also ordered Dennis Smith to serve a five-year term of supervised release following incarceration. Dennis Smith pled guilty on February 13, 2013, to the charges of conspiring to distribute marijuana and money laundering in the Omaha, Nebraska, and Council Bluffs, Iowa area.
Nicholas Barnes, a 26 year-old resident of Council Bluffs, Iowa, was sentenced to 48 months imprisonment for conspiracy to distribute marijuana. Chief Judge Gritzner also ordered Barnes to serve a three-year term of supervised release following incarceration. Barnes pled guilty on February 8, 2013, to a charge of conspiring to distribute marijuana in the Omaha, Nebraska, and Council Bluffs, Iowa area.
Gene Smith, a 29 year-old resident of Council Bluffs, Iowa, was sentenced to 41 months imprisonment for maintaining a drug involved premises. Chief Judge Gritzner also ordered Gene Smith to serve a two-year term of supervised release following incarceration. Gene Smith pled guilty on February 8, 2013, to a charge of maintaining a drug-involved premise in Council Bluffs, Iowa.
Co-defendant David L. Lopez, Jr., a 40 year-old resident of Omaha, Nebraska, was sentenced April 18, 2013, to 48 months imprisonment for conspiracy to distribute marijuana. Chief Judge Gritzner also ordered Lopez to serve a three-year term of supervised release following incarceration. Lopez pled guilty on February 8, 2013, to a charge of conspiring to distribute marijuana in Omaha, Nebraska, and Council Bluffs, Iowa.
Co-defendant Christopher Brandt, a 30 year-old resident of Council Bluffs, Iowa, was sentenced March 8, 2013, to 36 months imprisonment for conspiracy to distribute marijuana. Chief Judge Gritzner also ordered Brandt to serve a four-year term of supervised release following incarceration. Brandt pled guilty on August 6, 2012, to a charge of conspiring to distribute marijuana in the Omaha, Nebraska, and Council Bluffs, Iowa area.
The convictions were the result of an investigation conducted by several law enforcement agencies into the importation and distribution of marijuana by a known drug trafficking group operating in the Omaha, Nebraska, and Council Bluffs, Iowa area from May of 2009, through March of 2012.
The investigation was conducted by the Council Bluffs, Iowa, Police Department, the Southwest Iowa Narcotics Task Force, Omaha, Nebraska, Police Department, Iowa Division of Narcotic Enforcement, the Pottawattamie County Attorney’s Office, and the Drug Enforcement Administration. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
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Texas Couple Convicted of Conspiracy to Defraud the U.S. and to Engage in Money LaunderingRead the Press Release
Jury Verdict Returned Thursday June 27, 2013PORTLAND, Ore. – A federal jury in Portland returned verdicts of guilty Thursday in the trial of husband and wife Hossein Lahiji, age 50, and Najmeh Vahid Dasterjerdi a.k.a. Najmeh Lahiji, age 33, both of McAllen, Texas. Hossein Lahiji is a physician specializing in urology and Najmeh Vahid is an attorney, both practicing in Texas. The counts of conviction included conspiracy to defraud the United States which carries a maximum penalty of five years in prison and a fine of $250,000 and conspiracy to engage in money laundering which carries a maximum penalty of 20 years in prison and a fine of $500,000. The indictment alleged that defendants conspired to impede and impair the functions of the Internal Revenue Service in the collection of income taxes and the Office of Foreign Assets Control of the Treasury Department in the enforcement of the Presidential Embargo against Iran. The jury also returned a verdict of forfeiture to the United States of $600,000 that was involved in the money laundering offense.
Trial evidence showed that defendants provided funds to a Portland charity, the Child Foundation, between 1998 and 2006. The Child Foundation, in turn, gave the defendants charitable donation receipts and transferred the funds to Iran. Defendants claimed charitable deductions from their income taxes for these payments. Some of the funds were used to purchase a building in Tehran in the name of Hossein Lahiji’s sister. Additional funds were used to invest in an interest-bearing account in an Iranian bank. Yet additional funds were committed to be spent at the discretion of an Iranian Ayatollah. Some of the payments were backdated to facilitate claims of charitable donations for a year prior to the year of actual payment. Many of the uses of the funds violated the Presidential embargo against Iran, instituted in 1995. Co-conspirators Child Foundation and Mehrdad Yasrebi were separately prosecuted and sentenced in March 2012. Child Foundation has since completely reorganized and continues to operate under the supervision of U.S. Probation officers.
Judge Garr M. King presided over the trial, which began on June 11, 2013. He scheduled sentencing for November 19, 2013 at 10:00 a.m. Defendants remain on release pending sentencing. Defendants are charged in a separate federal indictment in the Houston Division of the Southern District of Texas with conspiracy to commit health care fraud, health care fraud, conspiracy to violate the Iranian Embargo, and failure to file a report of foreign bank and financial accounts. Trial in the Houston case is currently scheduled for October of 2013.
These cases were investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigations Division, and prosecuted by Assistant U.S. Attorneys Charles Gorder and David Atkinson.
Stealth Dental Clinic Operator Pleads Guilty to Health Care Fraud and Tax Evasion OffensesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut; Susan J. Waddell, Special Agent in Charge of U.S. Health and Human Services, Office of Inspector General for New England, William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, announced that GARY F. ANUSAVICE, also known as “Gary Andrews,” “Gary Andrus” and “Gary Francis,” 60, of North Kingstown, R.I., pleaded guilty today before United States Magistrate Judge William I. Garfinkel in Bridgeport to health care fraud and tax evasion offenses stemming from his involvement in a $20 million Medicaid fraud scheme.
“This defendant’s illegal operation of three Connecticut dental clinics, and his failure to pay income on the substantial amount of money he received from his involvement in this scheme, has siphoned millions of dollars from the Medicaid program and the U.S. Treasury,” said Acting U.S. Attorney Daly. “Health care fraud increases costs and threatens the integrity of our health care system, and we are committed to protecting American taxpayers by prosecuting these crimes. I want to thank HHS-OIG, IRS-Criminal Investigation and the FBI for their investigative efforts, and thank the Connecticut Attorney General’s Office, which has provided important assistance during the course of this investigation.”
“Although this defendant was barred from Medicaid and other Government health programs after his health care fraud conviction in 1998, he continued to bill these programs using an elaborate scheme to conceal his involvement,” said HHS-OIG Special Agent in Charge Waddell. “Working with Federal and State partners, our investigators effectively penetrate such schemes and help bring suspects to justice.”
“When a health care provider steals from the government via Medicaid Fraud, the money is part of the untaxed underground economy,” said IRS Criminal Investigation Special Agent in Charge Offord. “Gary Anusavice admitted his guilt today, and also agreed to forfeit significant assets that he purchased with the proceeds of the Medicaid fraud scheme.”
“Despite being excluded from participating in both Medicare and Medicaid, Mr. Anusavice devised and orchestrated elaborate schemes to defraud these government-sponsored health care programs with undaunted avarice and greed,” said FBI Special Agent in Charge Mertz. “His frauds not only greatly undermined the financial security of these vital programs but also impacted the ability of legitimate medical professionals to provide important health services to those truly in need.”
According to court documents and statements made in court, in July 1997, ANUSAVICE was convicted in Massachusetts state court for submitting false health care claims in relation to his involvement in dental clinics. He subsequently surrendered his dentistry licenses in Massachusetts and Rhode Island for five years. After additional investigations, ANUSAVICE surrendered his right to practice dentistry in Rhode Island for 18 months in 2005, and the Massachusetts Board of Registration in Dentistry permanently revoked ANUSAVICE’s license to practice dentistry in Massachusetts in 2006. As of May 1998, ANUSAVICE has been excluded from participation in Medicare and state health care programs, including Medicaid.
From 2008 to April 2011, ANUSAVICE owned and operated several dental clinics in Connecticut, but used a licensed dentist to act as the nominal head of the clinics. The clinics included Landmark Dental in West Haven, Dental Group of Connecticut in Trumbull, and Dental Group of Stamford. ANUSAVICE and the licensed dentist provided false Medicaid Provider Enrollment Applications to DSS that did not disclose ANUSAVICE’s controlling interest in the clinics or his disciplinary history. As a result of this fraud, the Connecticut Medicaid program reimbursed ANUSAVICE’s dental practices nearly $21 million.
ANUSAVICE actively managed the dental clinics, recruited dentists and oversaw their hiring. At various times, he trained personnel on Medicaid billing codes and procedures, and also determined salary and compensation for the clinics’ doctors and support staff.
ANUSAVICE attempted to conceal his involvement in these dental practices by establishing multiple nominee entities, including AMZ Consulting, Inc., Haven Consulting, Inc. and New England Preservation Services, Inc., and he directed his business partners and employees to make checks payable to these entities. ANUSAVICE deposited the checks into bank accounts he opened for the entities, and then used the funds to purchase assets for his personal use, including a residence in North Kingstown, R.I, a 33-foot yacht and a Mercedes Benz.
ANUSAVICE received $3,325,272 in income from the dental clinics, but did not file federal tax returns for the 2008 through 2011 tax years, resulting in a tax loss to the government of more than $1.2 million.
ANUSAVICE pleaded guilty to one count of health care fraud, which carries a maximum term of imprisonment of 10 years, and one count of tax evasion, which carries a maximum term of imprisonment of five years. He is scheduled to be sentenced by United States District Judge Vanessa L. Bryant in Hartford on August 23, 2013.
ANUSAVICE has agreed to forfeit his Rhode Island property, yacht and Mercedes Benz, as well as $91,700 in cash that was seized from his residence on May 24, 2012. He also has agreed to pay back taxes in the amount of $1,894,258.71, plus applicable interest and penalties. The tax loss figure includes more than $600,000 in federal taxes that ANUSAVICE failed to pay from 1990 to 2003.
In a related matter, the Connecticut Attorney General’s Office today announced that it has reached a settlement with ANUSAVICE and six of his management and consulting companies. Under the terms of the settlement, ANUSAVICE has agreed to pay the state $9.9 million, which represents treble damages under the Connecticut False Claims Act and restitution under the Connecticut Unfair Trade Practices Act.
ANUSAVICE was arrested on May 24, 2012, and has been released on a $500,000 bond since October 2012.This matter is being investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the Internal Revenue Service-Criminal Investigation, and the Federal Bureau of Investigation. The Connecticut Attorney General’s Office provided assistance and cooperation throughout the investigation.
This case is being prosecuted by Assistant United States Attorneys Susan Wines and Richard Molot, and Trial Attorney Sean Beaty of the Tax Division of the Department of Justice.
Acting U.S. Attorney Daly encouraged individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force at 203-777-6311 or 1-800-HHS-TIPS.
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(203) 821-3722 [email protected]Statement of New Jersey U.S. Attorney Paul J. Fishman on the Passing of Senator Frank LautenbergRead the Press Release
“Senator Lautenberg’s passion for public service and his commitment to making life better for everyone have inspired so many of us. From his service in WWII to his extraordinary tenure as our U.S. Senator, he exemplified everything that is great about this country. He was my friend, and I will miss him.”
St. Lucie County Resident Sentenced to Child Pornography ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kenneth Mascara, Sheriff, St. Lucie County Sheriff’s Office (SLCSO), announced today that U.S. District Judge K. Michael Moore sentenced Cameron Dean Bates, 46, of Port Saint Lucie, to 20 years imprisonment, followed by 15 years of supervised release.
According to testimony at trial, in March 2011, SLCSO detectives and members of the South Florida Internet Crimes against Children (ICAC) Task Force began an Internet investigation using Peer-to-Peer (P2P) software. During this investigation, law enforcement found that between December 2010 and June 19, 2012, several internet protocol (IP) addresses linked to Cameron Dean Bates in both St. Lucie County and Palm Beach County were used to download and share child pornography files. Detectives reviewed a number of the files associated with the IP addresses, and confirmed that the files contained child pornography.
On June 29, 2012, a state authorized search warrant was executed at Bates’ residence in Port Saint Lucie, Florida. During the search, law enforcement seized a Dell black/silver laptop computer from Bates’ car. An on-sight forensic preview scan of the computer found numerous, non-deleted, child pornography images and videos, which included a minor child engaging in sexually explicit conduct. A full forensic analysis of Bates’ laptop revealed numerous images and videos of child pornography, along with personally produced adult pornography by Bates.
Mr. Ferrer commended the investigative efforts of the St. Lucie County Sheriff’s Office and HSI for their assistance and their work on this case. The case is being prosecuted by Assistant U.S. Attorneys Carmen Lineberger and A. Marie Villafana.
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.
Southern Oregon Martial Arts Instructor Sentenced to Federal Prison on Marijuana ChargesRead the Press Release
Oregon Medical Marijuana Program Cloaks Illegal Marijuana SalesMEDFORD, Ore. - On Monday, June 3, 2013, Federal District Judge Owen M. Panner sentenced Robert Hisamoto, age 42, of Ashland, Oregon, to 48 months in federal prison for Conspiracy to Manufacture and Distribute Marijuana. Hisamoto owns and operates Samurai Fighting Arts in Medford, Oregon.
In August 2011, U.S. Drug Enforcement Agency aerial surveillance identified 198 large marijuana plants growing at 6530 Tolo Road, Central Point, Oregon. This property was owned by Robert Hisamoto and was listed as an Oregon Medical Marijuana Program (OMMP) grow site. On October 20, 2011, DEA agents executed a search warrant at the Tolo Road property. Charlie and Madeline Reader resided at the property with their adult children. All but sixteen marijuana plants had been harvested. A large barn contained 48 drying racks used to process marijuana. The garage contained an indoor marijuana grow operation with 90 marijuana plants under grow lights, and a “Trim Pro” (Twister) hi-speed marijuana processing machine.
Agents simultaneously executed a search warrant at Hisamoto’s residence, 704 Elkader Street, Ashland, Oregon. The garage contained 98 pounds of trimmed marijuana bud on drying racks, 117 pounds of packaged marijuana bud, and 17 pounds of marijuana shake, totaling 233 pounds. Hisamoto was registered as an OMMP caregiver for 30 patients, which allowed him to possess a maximum of 45 pounds of marijuana. Several documents contained notations of marijuana weights and prices per pound sold, with sales totals ranging from $18,000 to $29,000. Agents also discovered that Hisamoto maintained an additional marijuana grow site in Butte Falls. Agents later learned from witness interviews that Hisamoto additionally had more than 100 pounds of processed marijuana concealed in a storage unit, which Hisamoto later sold.
Interviews of listed OMMP growers and patients revealed that Hisamoto recruited OMMP growers and patients to justify growing large quantities of marijuana for sale. Most of the “growers” were not involved in the operation, and many of the “patients’ either did not use marijuana or never received marijuana from Hisamoto. Further investigation revealed that Hisamoto sold the marijuana to buyers from California. Hisamoto recruited co-defendants Charlie and Madeline Reader to manage the Tolo Road marijuana grow site. Madeline Reader also signed up OMMP patients for Hisamoto and paid their fees with money provided by Hisamoto. Hisamoto also recruited several others to guard the Tolo Road grow site and assist in trimming marijuana.
Co-defendants Charles Reader and Madeline Reader were previously sentenced to 33 months and 18 months prison respectively for their role in Hisamoto’s operation. Madeline Reader had a previous felony conviction for delivery of methamphetamine.
This case was investigated by the U.S. Drug Enforcement Administration with assistance from the Jackson County Sheriff’s Office, Medford Police Department, Ashland Police Department, U.S. Marshals Service, Immigration and Customs Enforcement, Federal Bureau of Investigation, Internal Revenue Service, U.S. Forest Service, and the U.S. Bureau of Land Management, and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.
South Sioux City Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Deborah R. Gilg announced that Louis Saunsoci, age 34 of South Sioux City, Nebraska, was sentenced for failing to register as a sex offender. The Honorable Joseph F. Bataillon sentenced Saunsoci to 21 months in prison. After his release from prison Saunsoci will begin a 5 year term of supervised release.
Saunsoci was previously convicted in federal court in Oklahoma for Abusive Sexual Contact with a Child. He received a 21 month sentence and was required to register as a sex offender. Saunsoci moved to Nebraska and registered with the Omaha Tribe as a sex offender listing a residence in Macy, Nebraska. While registered as a sex offender in Macy, Saunsoci was actually living in South Sioux City, Nebraska. He failed to register his South Sioux City address with the Nebraska Sex Offender Registry as required by law.
The case was prosecuted as a part of Project Safe Childhood. Project Safe Childhood is an initiative of the United States Department of Justice designed to protect children from individuals who would exploit them online or offline and includes individuals who travel in interstate commerce and fail to register as sex offenders as required by law. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Six Indicted for Illegally Exporting Restricted Firearms Parts from U.S. to ThailandRead the Press Release
Six people were arrested over the weekend following the return of two indictments charging them with conspiracy to violate the Arms Control Export Act and attempting to violate the Arms Control Export Act, announced U.S. Attorney Jenny A. Durkan. The defendants, two of whom are brothers, were arrested in SeaTac, Bellevue, Los Angeles, Las Vegas, and Berkeley, California. Brothers NARES LEKHAKUL, 36, a lawful permanent resident of Bellevue, Washington, and NARIS LEKHAKUL, 42, a Thai citizen arrested at SeaTac, will make their initial appearances in U.S. District Court in Seattle at 1:30 today.
According to the indictment, between 2011 and 2013, the defendants conspired to export restricted firearms parts from the U.S. to Thailand. The co-conspirators did not obtain appropriate licenses to make the shipments. The co-conspirators would use fake names and fake invoices to try to avoid detection, and they packed various firearms parts in specific ways to try to avoid detection by x-ray scanners. Members of the group shipped various firearms parts with false labels. For example, in one instance they shipped magazines for .45 caliber handguns, while labeling them “Vented steel case for electronic components” or “replacement springs and metal caps for bottling machine.” Other shipments were labeled as “hobby parts,” or “glow in the dark marker sets.” In all, the group is believed to be responsible for more than 240 shipments of restricted firearms components. The defendants did not ship any assembled firearms or entire firearms disassembled.
In addition to the LEKHAKUL brothers, these additional defendants are also indicted: WITT SITTIKORNWANISH, 24, a U.S. citizen residing in the Los Angeles area; WIMOL BRUMME, 41, a Thai citizen residing in Las Vegas; SANGSIT MOWANNA, 35, a U.S. citizen residing in the Los Angeles area; and
SUPANEE SAENGUTHAI, 35, a Thai citizen residing in Berkeley, California.The Department of State promulgates the United States Munitions List, which consists of categories of defense articles and services that cannot be exported without a license issued by the Department of State. The U.S. Munitions List includes the firearms’ parts and components shipped in this case. As a result, the export of firearms components requires an export license.
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.
The case is being investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the U.S. Postal Inspection Service.
The case is being prosecuted by Assistant United States Attorneys Todd Greenberg and Thomas Woods with assistance from the U.S. Department of Justice National Security Division, Counterespionage Section.
Sex Offender Sentenced for Distribution of Child PornographyRead the Press Release
Defendant Possessed and Distributed Child Pornography
ATLANTA – Milton Hugh Cashwell, a previously convicted sex offender who distributed graphic images of child pornography over the Internet was sentenced today to 20 years in prison.
“The distribution of images portraying the sexual abuse of children is horrific,” said United States Attorney Sally Quillian Yates. “The crime is made that much more egregious by the fact that the defendant had been previously convicted of molesting children. We will continue to identify and prosecute offenders who victimize innocent children.”
“While it is no surprise that a sex offender previously convicted of crimes involving children would be involved in the distribution of child pornography, the level of depravity on display in these cases is extremely troubling,” said Brock D. Nicholson, special agent in charge of ICE Homeland Security Investigations in Atlanta. “Everyone has a stake in stopping the sexual exploitation of our children. Trading in this filth is not OK; this is not a victimless crime.”
According to United States Attorney Yates and the information contained in public documents: During an undercover child pornography investigation in July 2012, a Homeland Security Investigations (HSI) Special Agent made contact with Cashwell after Cashwell offered to trade child pornography images online. Cashwell is a previously convicted sex offender, having been convicted of exploiting several children in Sumter County, Ga. in the 1980s. Cashwell distributed five separate videos containing graphic images of child pornography to the agent by email, including a video that showed an adult male raping a female child approximately six years of age. Federal agents subsequently executed a search warrant at Cashwell’s home in Americus, Ga. During that search, agents found broken pieces of Cashwell’s cell phone in his backyard, a phone he attempted to destroy to avoid being caught with the pornographic images.Cashwell was sentenced to 20 years in prison, to be followed by a lifetime period of supervised release by United States District Court Judge Steve C. Jones. There is no parole in the federal system. Cashwell was convicted of the charge on March 29, 2013, upon his plea of guilty.
This case was investigated by Special Agents with the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
This case is being 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 U.S. Attorneys’ Offices, 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 http://www.justice.gov/psc/ .
Assistant United States Attorney Jill E. Steinberg prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Seven Individuals Sentenced During the Month of May for Federal Supervised Release ViolationsRead 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
WHEELING, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced that during the month of May, 2013, seven individuals had their supervised release revoked for violating terms and conditions imposed by the United States District Court.
WHEELING DIVISION REVOCATIONS
(Judge Frederick P. Stamp, Jr.)
JOSH SMITH, age 25, of Weirton, West Virginia, was sentenced to 5 months imprisonment to be followed by 24 months of supervised release for a state conviction of domestic battery while on supervised release. SMITH was originally sentenced on July 1, 2008, to 60 months imprisonment and 3 years of supervised release for interstate travel in aid of racketeering. SMITH was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the Wheeling revocation hearing by Assistant
United States Attorney Randolph J. Bernard.CLARKSBURG DIVISION REVOCATIONS (Judge Irene M. Keeley)
LEO THOMPSON, age 31, of Fairmont, West Virginia, was sentenced to 8 months imprisonment for testing positive for the use of cocaine on two separate occasions. THOMPSON was originally sentenced on November 27, 2006, to 33 months imprisonment and three years of supervised release for the distribution of crack cocaine. THOMPSON will self- report to the designated Federal institution.DAVID FREEMAN INGRAM, age 33, of Clarksburg, was sentenced to 18 months imprisonment for testing positive for the use of controlled substances on three separate occasions. INGRAM was originally sentenced on November 24, 2008, to 24 months imprisonment and six years of supervised release for the distribution of morphine within 1,000 feet of a protected location. INGRAM will self-report to the designated Federal institution.
The United States was represented at the Clarksburg revocation hearings by Assistant
United States Attorneys Zelda E. Wesley and Brandon S. Flower.MARTINSBURG DIVISION REVOCATIONS
MATTHEW JENKINS, age 40, of Jefferson County, West Virginia, was sentenced to
13 months imprisonment for testing positive for the use of controlled substances, driving while suspended and changing residence without permission from the Probation Officer. JENKINS was originally sentenced on July 23, 2009, to 41 months imprisonment and 3 years of supervised release for the distribution of crack cocaine. JENKINS was remanded to the custody of the United States Marshal pending designation to a Federal institution.DAMON MITCHELL, age 37, of Berkeley County, West Virginia, was sentenced to 8 months imprisonment to be followed by 28 months of supervised release for testing positive for the use of controlled substances on three separate occasions and changing residence without permission from the Probation Officer. MITCHELL was originally sentenced on October 25, 2000, to 219 months imprisonment and 3 years of supervised release for the distribution of cocaine base. On February 2, 2009, MITCHELL’s sentenced was reduced to
177 months imprisonment and on November 1, 2011, MITCHELL’s sentence was again reduced to 141 months pursuant to the crack re-sentencing guidelines. MITCHELL was remanded to the custody of the United States Marshal pending designation to a Federal institution.BRIAN GROVE, age 23, of Berkeley County, was sentenced to 4 months imprisonment to be followed by 17 months of supervised release for testing positive for the use of controlled substances, failing to report for drug test and changing residence without permission from the Probation Officer. GROVE was originally sentenced on January 25, 2011, to 12 months and
1 day imprisonment and 3 years of supervised release for the possession with intent to distribute cocaine base. GROVE was remanded to the custody of the United States Marshal pending designation to a Federal institution.JASON YAIDER, age 37, of Mineral County, West Virginia, was sentenced to 82 days imprisonment for the possession of ammunition. YAIDER was sentenced on March 29, 2010, to 3 months imprisonment and 3 years of supervised release for possession of a firearm after a conviction for domestic violence. YAIDER’s supervised release was previously revoked on July 6, 2011, and he was sentenced to 15 months imprisonment and 3 years of supervised release. YAIDER was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the Martinsburg revocation hearings by Assistant
United States Attorney Paul T. Camilletti.The United States Probation Office carries out probation and pretrial services functions throughout the Northern District of West Virginia. With locations in Wheeling, Clarksburg, Martinsburg, and Elkins, the office works to assist the federal courts in the fair administration of justice, to protect the community, and to bring about long-term positive change in individuals under supervision. Jeff Givens is the Chief Probation Officer for the Northern District.
SW Washington Man who Operated Shingle Mill as Cover for Drug Dealing gets Ten Year Prison TermRead the Press Release
A former Amanda Park, Washington resident who operated a shingle mill as a cover for distributing methamphetamine was sentenced today to ten years in prison, announced U.S. Attorney Jenny A. Durkan. JOSE NAUR SANCHEZ, 35, was arrested in June 2012, following a lengthy investigation by the Drug Enforcement Administration, U.S. Customs and Border Patrol, the Tahoma Narcotic Enforcement Team, the Grays Harbor Drug Taskforce, and the Quinault Tribal Police. NAUR SANCHEZ pleaded guilty in March 2013. At sentencing, United States District Judge Benjamin Settle described the methamphetamine that the defendant possessed as “poison” which quickly leads to addiction.
“These defendants, who have ties to Mexican cartels, sought to spread their poison and influence on tribal land and in our rural areas,” said U.S. Attorney Jenny A. Durkan. “I am grateful for the good work of the Quinault Nation Narcotics Enforcement Team and Grays Harbor Drug Task Force who were key partners with federal law enforcement in this prosecution.”
According to records filed in the case, in the course of the investigation, law enforcement seized multiple pounds of methamphetamine. Two members of the smuggling ring were arrested and indicted following their arrest in May 2012, with six kilograms of methamphetamine hidden in the spare tire of their car. The men were tracked to a drug lab in Stockton, California, and were arrested by police on their return trip to Washington. When law enforcement raided the Stockton drug lab they seized more than 66 pounds of crystal meth, 88 pounds of liquid slush methamphetamine and disassembled assault rifles packaged for transport to Mexico. When NAUR SANCHEZ was arrested, investigators found four pounds of methamphetamine in a car associated with him. The meth was wrapped in cellophane and coated with grease in an attempt to hide it from police.
In asking for significant prison time, prosecutors noted that “Even after being deported following his fourth drug conviction and a three year sentence, the defendant returned to the United States and became involved in this conspiracy to distribute methamphetamine.”
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.Multiple local and federal law enforcement officers were involved in this DEA led investigation: Tahoma Narcotics Enforcement Team (TNET), Grays Harbor Drug Task Force (composed of the Hoquiam and Aberdeen Police Department and the Grays Harbor Sheriff’s Department), Lakewood Police Department, Quinault Nation Narcotics Enforcement Team, Internal Revenue Service Criminal Investigation, and FBI. Additionally, these agencies contributed: DEA Special Operations Division, DEA Modesto, Sacramento and Stanislaus, Clark-Vancouver Regional Drug Task Force, Homeland Security Investigation (HSI), Bureau of Indian Affairs (BIA), Lewis County Sheriff’s Office, Centralia Police Department and Customs and Border Patrol.
The case is being prosecuted by Assistant United States Attorneys Jeffrey Backhus, Marc Perez and Matthew Thomas.Rochester Woman Pleads Guilty in Case Involving the Filing of False Tax ReturnsRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Michelle Torres, 37, of Rochester, N.Y., pleaded guilty to conspiracy to defraud the United States before U.S. District Judge David G. Larimer. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that Torres engaged in a scheme with others that involved the filing of federal tax refund claims, CLaims were filed using stolen identities and refund checks were issued to various addresses in Rochester. The defendant retrieved the checks and then sent them to co-conspirators in New York City in exchange for a fee. The conspiracy resulted in over $1.6 million in fraudulent tax refunds being issued by the Internal Revenue Service.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge, Richard M. Frankel, and Special Agents of the Internal Revenue Service, under the direction of Special Agent in Charge Toni Weirauch.
A sentencing date has not been scheduled.Port Deposit Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
Baltimore, Maryland – Michael Dean Ragan, Jr., age 30, of Port Deposit, Maryland, pleaded guilty today to receipt of child pornography.
The guilty plea/sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Acting Special Agent in Charge Lisa Quinn of the United States Secret Service – Baltimore Field Office.
According to the plea agreement, on January 30, 2011, Ragan’s laptop computer, desktop computer, camera, hard drive and other digital media were seized by law enforcement during a search in an unrelated counterfeit currency investigation. Ragan later pleaded guilty to state counterfeit charges. A subsequent forensic examination of the items seized during the search found approximately 335 images and 17 videos of minors, including prepubescent minors, engaged in sexually explicit conduct, including acts of sadism, masochism of other depictions of violence.
In addition, a video was located on a seized DVD that depicted Ragan engaged in sexually explicit conduct with a minor male. According to the statement of facts, the video was taken without the knowledge of the minor male. Ragan admitted engaging in sexually explicit conduct with the minor male and also acknowledged being an administrator on a website dedicated to viewing, sharing and distributing child pornography. Ragan received a video on May 26, 2010, depicting two minor males engaging in sexually explicit conduct.
As part of his plea agreement, Ragan will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentencing range for receipt of child pornography is a minimum mandatory sentence of five years in prison and a maximum of 20 in prison followed by up to lifetime of supervised release. Ragan and the government have agreed that if the Court accepts the plea agreement Ragan will be sentenced to 12 years in prison followed by at least 20 years, but up to a lifetime of supervised release. U.S. District Judge Ellen L. Hollander has scheduled sentencing for September 4, 2013 at 10:30 a.m.
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 "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI and U.S. Secret Service for their work in the investigation, and thanked the Maryland State Police for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
“This case was discovered and investigated by members of a joint Baltimore Police and FBI anti-corruption task force and re-emphasizes my commitment to rooting out corruption within the Baltimore Police Department," said Police Commissioner Anthony W. Batts. My message to the people of our city is we are not finished - we will continue to relentlessly target corruption and misconduct among the ranks. A special note of thanks to all the police officers, agents and prosecutors for their assistance with this investigation and their continued support.”
According to the criminal complaint, on February 26, 2013, a confidential source provided information regarding alleged criminal activity being conducted by Baltimore Police officer Ashley Roane and her roommate Erica Hughes. The confidential source advised law enforcement that in the Fall of 2012, Roane had spoken to the source regarding drug trafficking and had told the source that if the source, whom Roane believed was a large scale heroin trafficker in Baltimore, wanted to sell drugs in the area where she patrolled, Roane would provide the source with a location that is not heavily concentrated with police. Additionally, Roane told that source that she could provide the source with information regarding police activity, specifically when and where drug search warrants would be executed.
The criminal complaint alleges that Roane provided assistance and protection to the confidential source in the source’s alleged drug trafficking. For example, on March 28, 2013, the criminal complaint alleges that Roane conducted a criminal check of one of the source’s alleged associates, to see if that person was an informant or cooperator with the Baltimore Police Department. According to the complaint, Roane agreed that she would tell the confidential source if the person were an informant so that the source would not engage in a drug transaction with that person. Further, the criminal complaint alleges on the on April 30, 2013, while in uniform, armed with her service firearm, and in a marked Baltimore Police Department vehicle, Roane provided protection while the confidential source conducted a narcotics transaction involving a kilogram of heroin. The confidential source allegedly paid Roane $500 for her protection and Roane agreed to provide such protection again in a future narcotics transaction involving multiple kilograms of heroin.
According to the criminal complaint, Hughes and Roane believed that the confidential source also worked as a tax preparer and they provided the personal information of more than 30 individuals, including names, dates of birth and social security numbers, to the confidential source to prepare and submit false tax returns to the IRS in order to obtain fraudulent tax refunds. The criminal complaint alleges that Roane obtained the personal information from law enforcement databases through her position as a Baltimore Police officer.
Roane faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison for possession with intent to distribute heroin, and a mandatory minimum sentence of five years in prison and a maximum of life in prison for possession of a gun in furtherance of a drug trafficking crime. Roane and Hughes face a mandatory sentence of two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. The defendants will be detained pending an initial appearance which will be scheduled for Monday, June 3, 2013, in U.S. District Court in Baltimore.
A criminal complaint 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 the FBI and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Peter M. Nothstein, who is prosecuting the case.