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17 May 2013
Texas Man Sentenced to 6 Years for Conspiring to Distribute Methamphetamine in Northern KY.Read the Press Release
COVINGTON, KY - A Texas man was sentenced to 72 months in federal prison for his role in a conspiracy to distribute methamphetamine in northern Kentucky.
U.S. District Judge David Bunning sentenced 52-year-old Michael Brian Brown on Thursday and placed him on supervised release for five years after he completes his prison term.
Brown admitted to distributing over 50 grams of pure methamphetamine from November of 2011 through April of 2012. He shipped between 1/8 ounce and an ounce of methamphetamine to Kenton County on approximately 12 occasions. Brown’s co-defendant, Michael Harney, received these shipments and distributed the methamphetamine in different areas in Northern Kentucky. In April of this year, Harney was sentenced to 53 months in prison.
Under federal law, Brown must serve 85 percent of his prison sentence.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Robert L. Corso, Special Agent in Charge, Drug Enforcement Administration (DEA), jointly announced the sentence.
The investigation was conducted by the DEA. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorney Tony Bracke.
Tarpon Springs Man Sentenced to 5 Years in Federal Prison for Narcotics and Firearm ChargesRead the Press Release
Tampa, FL - U.S. District Judge James D. Whittemore yesterday sentenced Gary Galati (46, Tarpon Springs) to five years in federal prison for possessing with intent to distribute marijuana and using a firearm during and in relation to that drug trafficking crime, and for possessing a firearm in furtherance of that drug trafficking crime. Galati pleaded guilty to those charges on January 15, 2013.According to court documents, Galati owned Galati Guns, Inc. and sold firearms without maintaining records as required by federal law. In addition, during the course of the investigation, Galati sold marijuana, firearms, and ammunition to a confidential source. On December 12, 2012, while at Galati Guns, Galati exchanged two firearms for marijuana with the confidential source. Later that day, federal agents executed search warrants at Galati Guns and at Galati’s residence, where they found additional marijuana near a loaded firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pasco County Sheriff’s Office, and the Pinellas County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Joseph W. Swanson.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Tampa Man Found Guilty of Drug ConspiracyRead the Press Release
Tampa, Florida - U.S. Attorney Robert E. O'Neill announces that a federal jury yesterday found Eugene E. Davis (39, Tampa) guilty of conspiracy to possess with the intent to distribute 5 kilograms or more of cocaine and conspiracy to possess with the intent to distribute 280 grams or more of crack cocaine. Based on his prior felony drug convictions, Davis faces a mandatory minimum term of life imprisonment. His sentencing hearing is scheduled for August 5, 2013. Davis was indicted on October 18, 2012.
According to testimony and evidence presented at trial, Davis engaged in a year-long conspiracy with others to distribute hundreds of kilograms of cocaine and crack cocaine in Hillsborough County. Davis, a prolific crack dealer, was known for purchasing multiple kilograms of cocaine and cooking it into crack cocaine. Additionally, he was often described as "flashy and flamboyant," because he used his drug proceeds to fund an extravagant lifestyle with high-end cars, expensive jewelry, and thousand of dollars in cash.
This case was the result of a comprehensive and dedicated effort by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service-Criminal Investigation, the Hillsborough County Sheriff's Office, and the Tampa Police Department, as part of an on-going Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation's drug supply. It is being prosecuted by Assistant United States Attorney Shauna S. Hale.
Syracuse Woman Sentenced in Aggravated Identity Theft CaseRead the Press Release
United States Attorney Richard S. Hartunian announced today that a Syracuse woman has been sentenced for her role in a series of aggravated identity thefts, three of which were committed after she had been indicted and while she was under federal court supervision.
Today Maurisha Dixon, age 25, was sentenced by United States District Court Judge David N. Hurd in Utica. DIXON was sentenced to 60 months imprisonment and ordered to pay restitution in an amount exceeding $55,000 with $36,694 going to Sallie Mae, $5,000 to The College Loan Corporation, and the remainder to KeyBank. DIXON will also serve four years of supervision following her release from incarceration and was ordered to pay a special assessment of $1,100. She was remanded to prison immediately following sentencing.
DIXON pleaded guilty on August 24, 2012 to four counts of aggravated identity theft, one count of wire fraud, three counts of false representation of a social security number, and three counts of committing an offense while on supervised release (11 felony counts in total). DIXON admitted that she stole and misused without authorization the identities and personal information of four individuals - some known to her, and some unknown - and used that information to defraud financial institutions in a series of schemes involving student loans and credit cards. In executing those schemes, DIXON created and used false documents, counterfeited government agency letterhead, and falsely represented herself as the individuals whose identities she had stolen.
The case was investigated by the Social Security Administration - Office of Inspector General and the Office of the Inspector General for the U.S. Department of Education. The case was prosecuted by Assistant United States Attorney Stephen C. Green.
Springfield, Kirbyville Men Charged with K2 ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man and a Kirbyville, Mo., man were charged in federal court today for their roles in a conspiracy to distribute synthetic marijuana, commonly referred to as K2.
Travis E. Butchee, 37, of Springfield, and Michael J. Saguto, 42, of Kirbyville, were charged with one count of conspiracy to manufacture and distribute a controlled substance analogue and one count of mail fraud in a criminal complaint filed in the U.S. District Court in Springfield. Saguto remains in federal custody pending a detention hearing. An arrest warrant has been issued for Butchee, who is a fugitive from justice. The public’s assistance is being sought to locate Butchee.
Butchee opened The Man Cave, a retail business at 1927 S.Glenstone in Springfield, in February 2013. Butchee and Saguto are the owners of Southern Spice, LLC.
According to an affidavit filed in support of today’s federal criminal complaint, Southern Spice manufactured synthetic cannabinoids (under such labels as Red Eyed, Blazed, Donkey Punch, Jolly Grape Giant, South of the Tracks, Baby Face and Devilz Lettuce), which was distributed to several businesses for resale. Search warrants were executed from January to December 2012 at several businesses – including Doobies (at two Springfield locations), Zak’s Place in Springfield, Beer and Bottle liquor store in Hollister, Mo., and Big E’s in Lebanon, Mo. – at which law enforcement officers seized hundreds of packages of K2 manufactured by Southern Spice, which were being sold by the businesses.
The affidavit cites four undercover purchases of K2 from The Man Cave by law enforcement officers in April and May 2013.
On Thursday, May 16, 2013 law enforcement officers executed search warrants at the residences of Saguto and Butchee, as well as at a Merriam Woods residence owned by Butchee. At Saguto’s residence, officers seized the components of a synthetic cannabinoid manufacturing laboratory and a significant amount of cash contained in an ammo box. At the Merriam Woods residence, officers seized three five-gallon buckets containing a plant substance identified as synthetic cannabinoids as well as packages filled with a substance believed to be synthetic cannabinoids, which were labeled Hillbilly Hay.
Saguto received numerous parcels through the mail on a frequent basis, the affidavit says, including frequent international parcels. Many of the international parcels originated in China. Many of the chemicals used to manufacture synthetic cannabinoids are produced in and distributed from China. The affidavit cites one package from China that was intercepted by law enforcement officers. The package, which was delivered to Saguto’s residence, contained two foil bags, each with approximately one kilogram of a chemical compound used to manufacture synthetic marijuana.
According to the affidavit, a total of $169,859 in checks from various head shops, tattoo parlors and other businesses were deposited into the Southern Spice bank account between April 10 and Nov. 20, 2012. Money was wired by Southern Spice to accounts in Hong Kong and China. An analysis of transactions from this bank account, the affidavit says, also showed purchases of other herbal products that are typically used as the plant ingredient in K2.
Dickinson cautioned that the charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the U.S. Postal Inspection Service, FDA-Office of Criminal Investigation, IRS-Criminal Investigation, the Drug Enforcement Administration, the Missouri State Highway Patrol, the Springfield, Mo., Police Department, the DEA Task Force and the COMET (Combined Ozarks Multi-jurisdictional Enforcement Team) Task Force.
Synthetic Designer Drugs
Over the past several years, smokable herbal blends marketed as being “legal” and providing a marijuana-like high have become increasingly popular, particularly among teens and young adults, because they are easily available and, in many cases, they are more potent and dangerous than marijuana. These products consist of plant material that has been coated with dangerous psychoactive compounds that mimic THC, the active ingredient in marijuana. These synthetic cannabinoids are sold at a variety of retail outlets, in head shops and over the Internet. Brands such as K2, Spice, Blaze, and Red X Dawn are labeled as incense to mask their intended purpose. However, they have not been approved by the Food and Drug Administration (FDA) for human consumption or for medical use, and there is no oversight of the manufacturing process.
While many of the designer drugs being marketed today are not specifically prohibited in the Controlled Substances Act, the Controlled Substance Analogue Enforcement Act allows these drugs to be treated as controlled substances if they are proven to be chemically and/or pharmacologically similar to a Schedule I or Schedule II controlled substance. This analogue provision specifically exists to combat these new and emerging designer drugs.
Six Indicted for Scheme to Defraud NissanRead the Press Release
Acting United States Attorney David Rivera announced the unsealing of an indictment today charging Kenneth Carter, 44, of Corona, Calif., Francisco DeLaRosa, 40, of West Covina, Calif., Adrian Franklin, 39, of Chandler, Arizona, Bruce Young, 49, of Compton, Calif., Tracey Young, 45, of Los Angeles and Wendell Young, 34, of Inglewood, Calif., with conspiracy, mail fraud, and conspiracy to commit money laundering for their involvement in a scheme to defraud Nissan North America of more than $571,500.
According to the indictment, between March 2007 and April 2008, Kenneth Carter was employed as an “Arbitration Specialist” at the Franklin, Tennessee headquarters of Nissan North America. In that role, he was responsible for negotiating settlement of claims brought on behalf of Nissan owners, alleging that Nissan had violated “Lemon Laws” or the “Federal Warranty Act.”
The indictment alleges that from March 2007 through April 2008, the defendants defrauded Nissan by filing false claims under the “Federal Warranty Act”. To accomplish the scheme, the defendants, and/or others acting on their behalf, would approach individuals who owned Nissan vehicles to obtain information such as the owner’s name, address, and vehicle identification number. Carter then used the information to create and cause to be filed, false and fraudulent claims on behalf of the Nissan owners, requesting compensation in the form of settlement checks. Once the checks were issued by Nissan, the defendants directed the Nissan owners to cash the checks or deposit the checks into their bank accounts. Thereafter, the defendants instructed the Nissan owners to pay them a portion of the funds they received from Nissan, with a portion of those funds kicked back and shared between Carter and the other defendants.
During the term of the scheme, Carter filed approximately 80 false claims, resulting in fraudulent payments by Nissan North America totaling approximately $571,500.If convicted, the defendants face up to 20 years on each mail fraud count, 20 years on the count of conspiracy to commit money laundering, 5 years on the count of conspiracy, and 5 years on the count of obstruction of justice.
The case was investigated by the IRS– Criminal Investigation and the Tennessee Bureau of Investigation. Assistant United States Attorney Kathryn B. Ward represents the government.
An indictment is merely an accusation and is not evidence of guilt. Defendants are presumed innocent unless and until proven guilty in a court of law.
Six Charged in Large Marijuana Drug Trafficking OperationRead the Press Release
– Nearly 4,900 pounds of marijuana seized and $160,650 in U.S. currency recovered in New Albany, Indiana and Jefferson County, Kentucky homes
LOUISVILLE, Ky. – Six defendants living in Jefferson, Shelby and Bullitt Counties, Kentucky have been charged today, in United States District Court, as part of a drug trafficking operation, with conspiracy to possess with intent to distribute and distribute 1000 kilograms or more of marijuana announced David J. Hale, United States Attorney for the Western District of Kentucky.
Raimundo Ramirez, Osvaldo Saldivar-Avila, Ricardo Saldivar-Avila, Jose Alfredo Escobar-Zavala, Jose Antonio Mora-Pizarro, Rafael Garcia-Garcia, were arrested yesterday and appeared in court this afternoon after being charged in a federal criminal complaint.
According to an affidavit, attached to the complaint, on the morning of May 16, 2013, agents observed Osvaldo Saldivar Avilla, Ricardo Saldivar Avilla, Jose Alfredo Escobar Zavala, and Osvaldo Saldivar Avila, at 906 Ulrich Avenue, in Louisville, KY. Almost immediately thereafter, a tractor trailer arrived and backed up to the rear bay door. The driver of this tractor trailer, later identified as Jose Antonio Mora Pizarro, was observed prepping the truck and watching inside the warehouse as pallets were being unloaded. On the pallets were multiple cardboard boxes labeled as cabbage and some pallets contained bags of onions. The tractor trailer was subsequently stopped by law enforcement and a drug detection dog indicated a positive alert for narcotics. The driver, Mora Pizarro, allegedly stated he was delivering cabbage and onions to Lexington, KY, and his log book showed he had been in Texas at 12:00 am on May 16, 2013.
A search warrant was obtained for 906 Ulrich Avenue where approximately 4,890 pounds of marijuana was found shrink wrapped inside cabbage boxes. Ricardo Saldivar Avilla, Jose Alfredo Escobar Zavala and Rafael Garcia were found unloading the suspected marijuana out of the cardboard boxes and arrested on site.
On March 14, 2013, the DEA Louisville District Office executed a federal search warrant at an alleged “stash house” being rented by defendant Raimundo Ramirez, on Jaycee Drive, located in New Albany, Indiana. Officers seized multiple heat sealers, unused heat sealing bags, multiple scales, drug ledgers, previously used heat sealed bags with numbers written on them, $160,650.00 U.S. Currency and a hand gun. The U.S. Currency was bundled with rubber bands and some of the currency, bundled in rubber bands, was further contained in heat sealed bags.
If convicted at trial, the defendants face a mandatory minimum of ten years up to life in prison, a fine of $10,000,000 and up to life of supervised release.
This case is being prosecuted by Assistant United States Attorney Laura Hall and is being investigated by the U.S. Drug Enforcement Administration (DEA) Louisville Office and the Louisville Metro Police Department.
Sioux Falls Man Indicted for FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota man has been indicted by a federal grand jury for fraud.
Randal Kent Hansen, age 65, was indicted by a federal grand jury on May 8, 2013 for Conspiracy to Commit Wire Fraud and Mail Fraud; Wire Fraud; and Mail Fraud. He appeared before U.S. Magistrate Judge John E. Simko on May 15, 2013 and pled not guilty to the indictment.
The maximum penalty upon conviction is 20 years imprisonment, a $250,000 fine or both. The charge is merely an accusation and Hansen is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Hansen was released on bond pending trial. A trial date has not been set.
Sioux Falls Man Guilty of Conspiracy to Distribute A Controlled Substance Analogue and Money LaunderingRead the Press Release
United States Attorney Brendan V. Johnson announced that Corey Brandon Morrison, age 24, of Sioux Falls, South Dakota appeared before U.S. District Judge Karen E. Schreier on May 17, 2013 for a change of plea hearing. Pursuant to a plea agreement, Morrison pled guilty to one count of Conspiracy to Distribute a Controlled Substance Analogue and one count of Money Laundering.
The drug charge carries a maximum sentence of 20 years in prison, a $1,000,000 fine, or both. The maximum sentence for the money laundering charge is 10 years in prison, a $250,000 fine, or both.
Under federal law, a controlled substance analogue is a substance which has a chemical structure that is similar to certain controlled substances and has an effect on the central nervous system which is intended to be similar to those controlled substances. Where controlled substance analogues are intended for human consumption, they are treated as controlled substances.
Morrison was indicted on October 10, 2012 by a federal grand jury. The indictment was the result of an investigation involving the Roll With It stores located in Sioux Falls.
Morrison’s conviction stems from his involvement in a drug conspiracy he joined in September 2011. As a participant in this conspiracy, Morrison sold analogue drugs to businesses in Sioux Falls where it was, in turn, sold to customers. Morrison was aware the customers were ingesting the substances to get high. Additionally, he deposited the illegal monetary gain into his personal bank account.
“Last year we stated that we would aggressively pursue anyone who was involved in the distribution of analogue drugs in South Dakota. We said what we meant, and meant what we said. There will be consequences for anyone who sells these drugs in our state,” said U.S. Attorney Johnson following the guilty plea.
The investigation was conducted by the U.S. Drug Enforcement Administration, the Internal Revenue Service, and the Sioux Falls Area Drug Task Force. U.S. Attorney Brendan Johnson and Assistant U.S. Attorney John E. Haak are prosecuting the case.
Morrison’s sentencing has been scheduled for August 2, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Sentences for May 16, 2013Read the Press Release
Geraldine Anita Margrave, 60, of Bend, Oregon, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 16, 2013, for possession with intent to distribute marijuana. Margrave was arrested in Bend, Oregon. She received five months of community confinement, to be followed by three years of supervised release and was ordered to pay a $200.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Sandra Renee Keith Indicted for Concealing A Fugitive and Making A False Statement to an Agency of the United StatesRead the Press Release
SANDRA RENEE KEITH, age 34, a resident of Hammond, Louisiana, was charged in a two-count indictment filed today for harboring and concealing a federal fugitive, and making a material false statement to a federal agent, announced U. S. Attorney Dana J. Boente.
According to court records, on May 6, 2013, KEITH did knowingly and willfully lie to agents of the Drug Enforcement Administration, an agency of the United States, in an attempt to conceal Michael D. Brumfield, a federal fugitive, from arrest.
If convicted, KEITH faces a maximum term of imprisonment of five (5) years, a $250,000 fine, three (3) years of supervised release following any term of imprisonment, and a $100 special assessment as to each count.
The case was investigated by the Drug Enforcement Administration. The case is being prosecuted by Assistant U. S. Attorney Julia K. Evans.
U. S. Attorney Boente reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
(Download Indictment )
San Francisco Man Indicted for Data Hosting SchemeRead the Press Release
SAN FRANCISCO - Yesterday a federal grand jury in San Francisco indicted Bruce Lee Marshall, of San Francisco, for mail fraud, United States Attorney Melinda Haag announced. Despite being ordered to appear in Court this morning, Marshall failed to appear for his arraignment and is currently a fugitive.
According to the Indictment, Marshall, 38, defrauded his employer, an education technology company, out of more than $100,000 by tricking his employer into believing it was sending checks to a data hosting company when in fact they went directly to Marshall. Marshall allegedly created a fake contract reflecting that the costs of his employer’s data hosting services were up to $16,000 per month, when, in fact, Marshall had entered into a different contract costing only $1,000 per month for data hosting services. Marshall allegedly created fraudulent invoices to be sent to his employer directing his employer to send payment to Touch Fiber Network and Human Engineering Services (aka HE Services), entities he controlled. In all, Marshall allegedly fraudulently caused his employer to pay his companies more than $100,000.
The investigation began in 2011 when aspects of this alleged fraud were charged against Marshall as a violation of his supervised release for a prior federal passport fraud conviction. Yesterday Marshall was ordered to appear in Court this morning for arraignment on the current charges. He failed to appear as ordered, however, and he is currently a fugitive. If anyone has information regarding his whereabouts, please call the San Francisco field office of the FBI at (415) 553-7400.
The maximum statutory penalty for mail fraud in violation of Title 18, United States Code, Section 1341, is 20 years in prison and a fine of $250,000, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Robert Rees is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rawaty Yim. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Marshall must be presumed innocent unless and until proven guilty.
(Marshall Indictment )
San Fernando Valley Doctor Who Sold Bogus Cancer ‘Cure’ to Victims Across the Nation Sentenced to 14 Years in Federal PrisonRead the Press Release
LOS ANGELES – The owner of a Mission Hills medical clinic who sold a bogus cancer cure to dozens of victims across the country as part of a “treatment” program that prosecutors said was “despicable, cruel and heinous” and hastened the death of some patients was sentenced today to 14 years in federal prison.
Christine Daniel, 58, of Santa Clarita, who operated a clinic under names such as the Sonrise Wellness Center, was sentenced to 168 months in prison by United States District Judge Robert J. Timlin, who remanded Daniel into custody following today’s hearing. In addition to the prison term, Judge Timlin ordered that Daniel forfeit a total of $1,277,083.
Following a federal court trial in September 2011, a jury convicted Daniel of four counts of mail and wire fraud, six counts of tax evasion and one count of witness tampering.
The basic facts of the case are that Daniel, a medical doctor and prominent Pentecostal minister, fraudulently marketed and collected more than $1 million for a medical treatment that she and her employees claimed could cure many diseases and conditions, including cancer, multiple sclerosis, stroke, Alzheimer’s Disease, Parkinson’s Disease, diabetes and hepatitis. Daniel claimed that her bogus cancer cure had a success rate of between 60 percent and 80 percent for the most advanced forms of cancer.
The evidence presented at trial showed that Daniel’s treatment did not cure anyone of cancer, nor was it was made from herbs from around the world or blended for an individual patient, as she has promised patients. Chemical analyses determined that the product contained sunscreen preservative and beef extract flavoring, among other ingredients, none of which could have had any effect on cancer or other diseases, according to expert testimony.
“The scope of Daniel’s fraud was breathtaking,” said United States Attorney André Birotte Jr. “Daniel robbed victims of more than money - she also stole their hopes and dreams for a cure. Daniel is responsible for a shockingly cold-hearted fraud that has brought her a richly deserved federal prison sentence.”
Lisa Malinowski, Special Agent in Charge of the Food and Drug Administration’s Office of Criminal Investigations (OCI), Los Angeles Field Office, stated: “The defendant in this case exhibited a blatant and heartless disregard for the desperately sick and vulnerable patients she repeatedly victimized. Today’s sentence aptly reflects the consequences of Dr. Daniel’s actions and demonstrates OCI’s commitment to relentlessly investigating modern-day snake oil salesmen that prey on sick and defenseless victims.”
The evidence presented during the trial showed that Daniel used her status as a Pentecostal minister to create a bond of trust with members of the Evangelical Christian community, an affinity that gave her access to victims to whom she sold bogus hope and worthless treatments. Daniel promoted the product under a variety of names – including “C-Extract,” “the natural treatment” and “the herbal treatment” – through a program televised on the Trinity Broadcasting Network.
Daniel and her employees falsely claimed that the product was made with herbs from around the world and was manufactured in a laboratory according to the needs of each patient. Depending on the purported level or strength of the herbal product, Daniel would charge her customers up to $4,270 for one week’s worth of the herbal product. She offered a six-month treatment program for between $120,000 and $150,000.
Daniel “personally met with her victims in her medical office, looked them in the eyes, and represented that she had a miracle, herbal cancer cure that could save their lives,” according to the government’s sentencing memorandum.
During the trial, the jury heard testimony from 28 victim-patients, or close family members of victims who had died while taking Daniel’s product. Some described how Daniel urged them to avoid conventional cancer treatments, such as radiation or chemotherapy, because such therapies would reduce the efficacy of Daniel’s herbal “cure.” Family members testified that Daniel also forbid her cancer patients to take any pain relief medication for the same reason. Some of these patients spent the last few months of their lives in agony as the cancers spread throughout their bodies. The evidence presented at trial showed that a significant percentage of Daniel’s patients died within three to six months after they started taking Daniel’s bogus cure.
According to testimony at trial, one victim who had been diagnosed with metastatic breast cancer contacted Daniel and was told that chemotherapy would not help. After the victim traveled to Southern California, Daniel told the victim that the herbal treatment program would shrink her tumors and kill her cancer cells. For almost five months, the victim and her husband paid Daniel thousands of dollars for the herbal product. After taking the herbal “cure” for four months and within two weeks after Daniel pronounced her to be cancer-free at a party held for patients, the victim died. The cancer had spread from her breasts to her bones and brain.
“Daniel repeatedly demonstrated a merciless and callous indifference to the suffering of her patients and their family members,” prosecutors wrote in court papers.
Daniel and employees working at her direction induced approximately 60 victims to send more than $1.2 million to Daniel’s Sonrise clinic. In an attempt to operate the business under the guise of a non-profit organization, Daniel instructed patients to classify their medical service payments as donations. According to documents filed with the court, for the tax years 2002 through 2004, Daniel failed to report nearly $1.3 million on her corporate income tax returns, which resulted in a tax loss to the government of approximately $438,809. Similarly, Daniel failed to report approximately $315,109 on her personal income tax returns for the same time period, resulting in an additional tax loss to the government of $73,895.
“Christine Daniel used her position of trust -- as a medical doctor and Pentecostal minister -- to defraud vulnerable cancer patients in a $1.2 million dollar scheme,” said Jose A. Gonzalez, Special Agent in Charge of IRS Criminal Investigation’s Los Angeles Field Office. “Defendant Daniel’s convictions for failing to pay federal income taxes on the proceeds of her fraudulent cancer fraud scheme confirm her greed and the criminal nature of her character. Today, Justice is served, and Christine Daniel is being held accountable for her criminal actions.”
The evidence presented at trial showed that Daniel attempted to influence the testimony of at least two witnesses who were called to testify before the grand jury. One of those witnesses, a long-time patient of Daniel, admitted during trial that he lied to both law enforcement officers and the federal grand jury after being improperly influenced by her.
The investigation of Daniel was conducted by IRS - Criminal Investigation, the U.S. Food and Drug Administration’s Office of Criminal Investigations, and the Medical Board of California.
Release No. 13-071
Salinas Man Charged with Child Sexual AbuseRead the Press Release
SAN JOSE - David John Stevens has been arrested and charged with engaging in sexually explicit activity with a minor and distributing child pornography, United States Attorney Melinda Haag announced. The charges are based on allegations that he molested a prepubescent girl and distributed video images of that molestation over the Internet.
Stevens was arrested on Wednesday in his home in Salinas, only five days after a “John Doe” arrest warrant was issued in Washington, D.C., and just over 24 hours after U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) issued a public appeal for leads in the case. Stevens was taken into custody by HSI special agents and investigators with the Salinas Police Department.
According to the complaint, Stevens was identified by a member of the public after she saw images from videos the defendant had posted on the Internet. The reporting party saw three images (which had been sanitized for public dissemination) on the website of the National Center for Missing and Exploited Children. Upon recognizing Stevens in the photographs, the witness notified the authorities.
The complaint alleges that Stevens filmed the molestations in a soundproof room located in the garage of his home. The complaint further states that, in addition to positively identifying Stevens, the reporting party was able to identify the room in which the molestations allegedly had occurred.
United States Attorney Melinda Haag made this comment following the arrest:
There is no higher priority for my office than protecting the youngest and most vulnerable members of our community: our children. My office will continue to work closely with our federal and state law enforcement partners to carry out that mission. I congratulate the agents at the Department of Homeland Security, as well as the fine officers of the Salinas Police Department, for their quick work in apprehending this suspect. I also thank the person who came forward and reported this conduct to the authorities. We could not do our work without the assistance of the public.
Stevens made his initial appearance in federal court yesterday before The Honorable Howard R. Lloyd, United States Magistrate Judge. He was remanded into the custody of the United States Marshal pending arraignment on June 6, 2013, at 10:30 a.m., before The Honorable Paul S. Grewal, United States Magistrate Judge.
The maximum statutory penalty for Count One, persuading or inducing a minor to engage in sexually explicit activity, in violation of 18 U.S.C. § 2251(a), is not less than 15 nor more than 30 years’ imprisonment and a fine of $250,000. The maximum penalty for Count Two, distributing child pornography, in violation of 18 U.S.C. §2252(a)(2), is not less than 5 nor more than 20 years’ imprisonment and a $250,000 fine. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
David R. Callaway is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elise Etter. The prosecution is the result of a nationwide HSI initiative to protect children from sexual predators in close collaboration with the Salinas Police Department.
All members of the public are encouraged to contact HSI through its toll-free hotline, 1-866-347-2423, if they have further information about this matter.
In addition, suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, via its toll-free 24-hour hotline, 1-800-843-5678.
Please note that a complaint contains only allegations against an individual and, as with all defendants, Stevens, must be presumed innocent unless and until proven guilty.
(Stevens Complaint (REDACTED VERSION) )
Rosebud Man Sentenced for Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota man convicted of Assault with a Dangerous Weapon was sentenced on May 15, 2013 by U.S. District Judge Roberto A. Lange.
Aaron Sharpfish, age 21, was sentenced to 394 days in custody, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.
Sharpfish was indicted by a federal grand jury on April 10, 2012 and pled guilty to the charge on March 5, 2013.
The conviction stems from an incident that took place on November 21, 2011, when Sharpfish hit the victim causing him to fall to the ground. Sharpfish then kicked the victim in the head and face several times causing a fracture to the victim’s eye.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
Sharpfish was remanded to the custody of the U.S. Marshal.
Rosebud Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota man convicted of Abusive Sexual Contact was sentenced on May 14, 2013 by U.S. District Judge Roberto A. Lange.
Robert I. Pomani, age 21, was sentenced to 24 months’ imprisonment, 5 years of supervised release and a $100 special assessment to the Federal Crime Victims Fund.
Pomani was indicted by a federal grand jury in October of 2012. He pled guilty to a Superseding Information on February 15, 2013. The conviction stems from an incident in December of 2010 when Pomani was in a relationship with the victim. At that time, Pomani was 19 years old and at least 4 years older than the victim. While in the relationship, Pomani engaged in conduct which resulted in abusive sexual contact.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Pomani was immediately turned over to the custody of the U.S. Marshal.
Ronald Jay Miller Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on May 14, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, RONALD JAY MILLER, a 56-year-old resident of Helena, pled guilty to access with the intent to view child pornography. Sentencing has been set for August 9, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
From approximately 2011 until October 18, 2012, MILLER accessed visual depictions of children engaged in sexually explicit conduct on his computer.
Montana Probation and Parole conducted a probation search of MILLER's residence on October 18, 2012, in reference to his possession of firearms at his residence. At that time, MILLER's computer and a number of floppy discs were seized.
While looking for information on MILLER's computer and floppy discs for firearm information, law enforcement located an image of a child engaged in sexually explicit conduct. Forensic examination revealed that MILLER accessed images and videos containing children engaged in sexually explicit conduct using his computer and the Internet. The Internet access dates were between approximately June 2011 and October 2012.
MILLER faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to 20 years, a $250,000 fine, and lifetime supervision.
The investigation was conducted by the Montana Probation and Parole.
Ranch Owner in Young County Sentenced to 10 Years in Federal Prison for Shooting A Crop-Dusting Aircraft Flying Near His RanchRead the Press Release
Multiple Bullets Struck and Damaged Aircraft
WICHITA FALLS, Texas — Stephen Paul Riley, 41, of Olney, Texas, was sentenced this morning by U.S. District Judge Reed C. O’Connor, in federal court in Wichita Falls, Texas, to 120 months in federal prison and ordered to pay $3600 in restitution, following his guilty plea in January 2013 to an Indictment charging one count of destruction of an aircraft. Riley has been in federal custody since his arrest on May 10, 2013, for violating the conditions of his pretrial release. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, at approximately 11:40 a.m., on February 22, 2008, as a pilot flew his crop-dusting aircraft over property adjacent to the Flying Lead Ranch (FLR), a commercial hunting and residential property owned and occupied by Riley, Riley shot the aircraft with a firearm, striking it with multiple bullets and damaging the aircraft. One bullet struck the rudder cable and nearly severed it. A bullet or bullet fragment also struck the V-strut bar, approximately one and one-half inches from the connector bolt. Bullets, or bullet fragments, caused a hole in the aircraft’s left rear wing and indentations on the plane’s left side. The bullet holes and other damage indicated that the aircraft had been shot by someone on the ground discharging a firearm upward into the air. The aircraft was leased by Keeter Aerial Spraying, of Olney, for commercial crop-dusting services in Texas and Oklahoma.
Documents filed further state that prior to the above-stated date, Riley threatened Keeter’s owner, both in person and by phone, that he would shoot down any crop-duster that flew over his hunting ranch. In August 2010, officials with Texas Parks and Wildlife, seeking evidence of illegal hunting, executed a search warrant at the FLR and discovered a disc that contained video footage of Riley firing approximately 23 shots at another Keeter aircraft spraying the same field in July 2007. In September 2010, when questioned by a Texas Ranger, Riley admitted to shooting at Keeter aircraft on more than one occasion, as he had threatened to do.
The case was investigated by the Texas Rangers and the Texas Parks and Wildlife Department. Assistant U.S. Attorney Katherine Miller prosecuted.
Public Corruption Indictments ReturnedRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana C United States Attorney David Capp announced that three indictments were returned as a result of investigations by the public corruption task force.
Vahan Kelerchian, 53, of Richboro, Pennsylvania, is charged in a nine count indictment.Kelerchian is the principal owner and operator of Armament Services International, a company located in the Philadelphia area engaged in the sales of firearms, primarily through the internet. The indictment alleges that Kelerchian, from November 2008 to January 2010, conspired with Joseph Kumstar and Ronald Slusser to make false statements concerning the acquisition of firearms.Kumstar and Slusser are both former Lake County Sheriff deputies who were indicted for this conduct in September 2010.Both have since plead guilty, are awaiting sentencing and cooperating with the United States Attorney’s Office.
Essentially, the indictment alleges that Kelerchian, Kumstar and Slusser utilized the Lake County Sheriff ‘s Department to acquire approximately 71 machine guns representing that those firearms were to be owned and utilized by the sheriff’s department for law enforcement purposes.In actuality, it is alleged that Kelerchian, Kumstar and Slusser acquired these firearms for themselves and broke the firearms down into certain component parts and sold those parts at considerable profit.
The indictment also alleges a conspiracy among the same individuals to defraud the Food and Drug Administration (FDA) concerning the acquisition of approximately 74 restricted laser sights which can only be obtained by law enforcement or the military.Similar misrepresentations concerning the acquisition and use by the Lake County Sheriff’s department are alleged in this count.
Kelerchian is also charged with conspiring with Joseph Kumstar to provide the Bureau of Alcohol, Tobacco, Firearms and Explosives with letters purportedly from the sheriff’s department requesting demonstrations of machine guns when in fact they knew there would be no such demonstrations.
The indictment also charges that on or about July 31, 2008, Kelerchian gave Kumstar a certain firearm intending to award or influence Kumstar in connection with transactions concerning the Lake County Sheriff’s department. The final count of the indictment alleges a conspiracy by Kelerchain, Kumstar and Slusser to conduct financial transactions involving the proceeds of specified unlawful activity.
Roman Perez, 41, of Crown Point, Indiana, is charged with one count of making false statements under oath on a tax return and one count of making a false statement in a bankruptcy proceeding.The Indictment alleges that Perez understated his total taxable income for 2007 by approximately $110,108.00, of which approximately $80,000 constituted payments from both the Treasurer of Lake County, Indiana, and the Lake County Sheriff’s Commissary Fund, to Roman Art Inc., a graphic design business owned and operated by Perez; and that Perez understated his gross income for the year 2009 by an amount in excess of $40,000 in a Chapter 13 bankruptcy case.The United States Attorney’s Office will today file a plea agreement wherein Perez has agreed to plead guilty to these charges and will cooperate with the United States Attorney’s Office.
Current Lake County Surveyor George Van Til, 65, of Merrillville, Indiana, is charged with six counts of wire fraud and two counts of obstruction of justice.
The indictment alleges that Van Til,beginning in or about November 2007 and continuing through December 2012, devised a scheme to defraud Lake County of money and property by utilizing county employees to perform personal services and political services so that Van Til would be re-elected as Lake County Surveyor.
The indictment also alleges that Van Til directed an employee to remove a hard drive from a Lake County computer and to replace it with another hard drive.Van Til gave that employee $100 cash in order to purchase the replacement hard drive from a local retailer.Van Til was concerned that federal authorities might come to the Surveyor’s office and confiscate the hard drive.
The indictment further alleges that Van Til told that same employee “And by the way, if by some chance down the line there’s ever a conversation, we never had these conversations.”
Van Til’s alleged conduct with respect to this particular employee forms the basis for the two obstruction of justice counts.
United States Attorney Capp advised that these indictments were the result of the ongoing investigative effort by the public corruption task force.That task force is comprised of the Federal Bureau of Investigation, the Internal Revenue Service, the Indiana State Police and the United States Attorney’s Office.In the Kelerchian indictment, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Food and Drug were principally involved.Capp thanked these agencies and departments for their continued cooperative efforts in the important area of public corruption.Capp stated, “As I have said before, our public corruption effort is ongoing and we will continue to investigate and, where appropriate, seek federal indictments against those who abuse the public trust.”
These cases have been assigned to and are being prosecuted by Assistant United States Attorneys Philip Benson, Gary Bell and Joshua Kolar.
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.
Plea of Guilty Entered to Receipt of Child PornographyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Josh Ensley, age 52, of Tucker, Georgia, entered a plea of guilty to Count One of an Indictment charging him with Receipt of Child Pornography, a violation of Title 18, United States Code, Section 2252(a)(2) and (b)(1). Mr. Ensley entered his plea before the Honorable Charles A. Pannell, Jr., United States District Judge in Atlanta, Georgia on May 16, 2013.In entering a plea of guilty, Mr. Ensley admitted that between September 18, 2008, and March 20, 2011, he ordered and received DVDs containing visual depictions of minors engaged in sexually explicit conduct and which had been shipped to him in interstate commerce. He also admitted that on October 25, 2012, he possessed additional material on his computer which contained visual depictions of minors engaged in sexually explicit conduct and which had been obtained by him over the internet using a facility in and affecting interstate commerce. Some of the visual depictions possessed by Mr. Ensley depicted minors who were younger than twelve (12) years old. Mr. Ensley was an employee of a school in Dekalb County, Georgia, which had students under the age of eighteen (18) years, and he further acknowledged that on October 25, 2012, he possessed videos that he had produced which depicted minor students of the school using the restroom. He admitted surreptitiously placing video cameras in the boys’ and girls’ restrooms at the school and videotaping students’ genitals without their knowledge or consent.
Mr. Ensley faces a mandatory minimum of five (5) years imprisonment up to a maximum sentence of twenty years (20) imprisonment, a maximum fine of $250,000.00, or both, and a term of supervised release of five (5) years up to life, and a mandatory assessment fee of $100.00. Sentencing is scheduled for July 25, 2013 at 10:00 a.m.
“Our child pornography laws are on the books to protect our children from people like Mr. Ensley. Every time he viewed one of his DVDs containing child pornography, he re-victimized these children. This guilty plea reminds us that we, as parents and educators and anyone else caring for children, must be mindful of those who prey on them,” said U.S. Attorney Michael Moore.
The case was investigated by the United States Postal Inspection Service, Atlanta Division, and is being prosecuted by Assistant United States Attorneys Paul C. McCommon III and Robert D. McCullers.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2602.
Pill Mill Doctor/Owner Pleads Guilty to Oxycodone ConspiracyRead the Press Release
Defendant Physician Owned and Operated Pain Management Clinic
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, and Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, announced that Dr. Stephen Anthony, 64, of Davie, Florida, pled guilty to conspiring to distribute and dispense large amounts of oxycodone without a legitimate medical purpose and outside the usual course of professional practice. Dr. Anthony also pleaded guilty to money laundering and income tax evasion. Anthony faces a maximum term of imprisonment of five years on the drug charge, ten years on the money laundering charge and 5 years on the tax evasion charge. The sentencing hearing is set for October 4, 2013 in front of U.S. District Judge Robert N. Scola, Jr.
According to the terms of the plea agreement, Anthony has agreed to forfeit $338,300 in money and property representing proceeds he earned and laundered as a result of his involvement as a physician at Broward Urgent Care in Fort Lauderdale. As set forth in the plea agreement, between April 2010 and February 2011, Anthony was employed as a clinic doctor at Broward Urgent Care which, at the time, was had previously been owned by co-conspirators, Vincent Colangelo and Nicholaus Thomas. Colangelo pleaded guilty to narcotics, money laundering and federal income tax offenses on April 2, 2012, arising from his ownership of six pill mill clinics and a pharmacy in Broward and Miami-Dade Counties. Thomas pleaded guilty on November 18, 2011 to narcotics and money laundering charges. Colangelo and Thomas sold Broward Urgent Care to Anthony after the Florida legislature enacted legislation in October 2010 requiring that pain management clinics be owned by licensed physicians. According to a review of medical records, while at Broward Urgent Care, Anthony wrote 12,510 prescriptions for oxycodone and 5,776 prescriptions for Xanax, and more than 99% of Anthony’s patients received prescriptions for oxycodone. In total, Anthony prescribed 42,374,370 milligrams of oxycodone during the ten months he worked as a physician at Broward Urgent Care.
Between 2000 and 2007, Anthony evaded the payment of approximately $556,262 in individual income and employment taxes. According to the plea agreement, Anthony evaded taxes by depositing monies into a bank account in the name of a third party. Instead of paying taxes, Anthony purchased thousands of dollars in personal items including jewelry and automobiles. Anthony also laundered approximately $581,761 in illegal narcotics proceeds generated from Broward Urgent Care between October 15, 2010 and February 22, 2011.
U.S. Attorney Wifredo A. Ferrer stated, “We will continue to investigate and aggressively prosecute physicians like Dr. Anthony, who illegally prescribed prescription pain killers from his pill mill clinic without regard for the safety and well-being of his patients or our community. We are committed to prosecuting unscrupulous doctors, clinic owners, or other operators who deal drugs while hiding behind a medical license.”
Michael J. DePalma, Acting Special Agent in Charge, IRS Criminal Investigation, stated, “IRS Special Agents are experts at following the money trail to ensure that income from legal or illicit sources is properly reported. Dr. Anthony’s guilty plea to tax evasion and money laundering charges, in conjunction with the forfeiture of his ill-gotten assets, sends a clear message that law-breakers will not be allowed to enjoy the fruit of their crimes.”
DEA Special Agent in Charge Mark R. Trouville stated, “This is a great example of where the road leads to for pill mill doctors. Due to these investigations, Florida doctors are no longer among the top oxycodone purchasers in the United States. The DEA will continue to work with our law enforcement partners to investigate those who look to prosper from the diversion of powerful prescription medicines and to ensure public safety.”
Vincent Colangelo was sentenced on June 29, 2012 to twenty years in prison, to be followed by three years of supervised release. Nicholaus Thomas was sentenced on May 23, 2012 to ten years in prison, to be followed by three years of supervised release.
Mr. Ferrer thanked the DEA, IRS-CI and the Broward Sheriff’s Office, as well as the many other state and local agencies for their investigative work. This case is being prosecuted by Assistant U.S. Attorney Scott Behnke and Tax Division Trial Attorney Greg Tortella.
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.
Phoenix Man Sentenced to 235 Months in Federal Prison for Armed Bank RobberyRead the Press Release
PHOENIX – On May 15, 2013, Jon Phillip Carstens, 47, of Phoenix, Ariz. was sentenced by visiting U.S. District Judge Linda R. Reade to 235 months in federal prison for robbing a Wells Fargo Bank in Yuma, Ariz. Carstens pleaded guilty on Feb. 8, 2013 to armed bank robbery.
According to the plea agreement, Carstens entered a Wells Fargo Bank in Yuma, wearing a hat and a scarf which covered his face. After entering the bank, Carstens approached the victim teller brandishing a .380 caliber pistol, and jumped over the counter to the victim teller’s side while continuing to brandish the firearm. He grabbed money from the teller drawer, jumped back over the counter, exited the bank, and jumped into a Honda Civic and fled. He was later apprehended in Imperial County, Calif. Carstens had previously been convicted of bank robbery in Tampa, Fla.
The investigation in this case was conducted by the Federal Bureau of Investigation, Yuma County Sheriff’s Office, Yuma Police Department, Arizona Department of Public Safety, United States Border Patrol, and the Imperial County Sheriff’s Office. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-1669-PHX-NVW
RELEASE NUMBER: 2013-040_CarstensFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Pennsylvania Man Sentenced for Cyber-stalking and Child Pornography OffensesRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick A. Miles, Jr., announced today that Joseph J. Ostrowski, 29, of Wilkes-Barre, Pennsylvania, was sentenced yesterday to serve 30 years in federal prison by a federal judge in the Middle District of Pennsylvania for offenses that included a charge of cyber-stalking in the Western District of Michigan.
The investigation of the cyber-stalking charge by the Lansing, Michigan FBI and the Michigan State University Police Department (MSUPD) resulted in the execution of a federal search warrant for Ostrowski’s residence in Wilkes-Barre in May 2012. That search resulted not only in the seizure of evidence of cyber-stalking of MSU students, but also in the discovery that Ostrowski – at the time the head football coach of a local high school – was committing numerous child-pornography felonies in Pennsylvania. Charged both in the Western District of Michigan with cyber-stalking and in the Middle District of Pennsylvania with numerous child pornography felonies, Ostrowski pled guilty to both cases in Pennsylvania as part of a plea agreement that allowed for the transfer of the Michigan case to Pennsylvania for guilty-plea and sentencing.
The investigation began in 2011 after MSUPD was made aware of MSU student social-networking sites being compromised and exploited by a then-unknown perpetrator to harass, threaten, and intimidate MSU students. When investigation by the MSU Police Computer Forensic Unit obtained information indicating that the perpetrator resided outside of Michigan, the Lansing FBI was contacted for assistance and joined the investigation. Working together, FBI and MSUPD obtained and executed the federal search warrant that resulted in Ostrowski’s arrest and ultimate conviction.
Commenting on the sentences, U.S. Attorney Miles stated, “Internet communications and social networking are positive in many respects, but they can also be very dangerous. Those who criminally exploit others through the Internet and social networks deserve prosecution. Thanks to the outstanding work of MSUPD and the FBI, there’s one more on-line predator out there who won’t be logging on again anytime soon.”
Addressing the fact that Ostrowski’s stalking crime involved taking over the social-network accounts of numerous victims by, in part, exploiting personal information that had been posted on those sites, Miles also observed, “People of all ages need to be careful and think twice about personal information they share on the Internet and to whom.”
Robert D. Foley III, Special Agent in Charge of FBI Detroit, added, “Those individuals who seek and obtain pornographic images of minors, and conduct intrusions through the Internet will face severe consequences for their crimes. The FBI is committed to working with the MSUPD and to holding these deplorable criminals accountable.”
The case was investigated by the Lansing and Wilkes-Barre offices of the FBI and by the MSUPD. It was prosecuted by Assistant U.S. Attorney Hagen W. Frank, who serves as the principal of the Identity Theft and Cybercrime Task-Force of the U.S. Attorney’s Office.
END
Parmelee Man Charged with Aggravated Sexual Abuse, Sexual Abuse, Aggravated Incest and Witness TamperingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmelee, South Dakota man has been indicted by a federal grand jury for Aggravated Sexual Abuse, Sexual Abuse, Aggravated Incest and Witness Tampering.
Ian James Burning Breast, age 20, was indicted by a federal grand jury on May 14, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 15, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to life in custody, a $250,000 fine, or both; 3 years of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Burning Breast is presumed innocent until and unless proven guilty. The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Timothy M. Maher is prosecuting the case.
Burning Breast was remanded to the custody of the U.S. Marshal pending trial. A trial date has not been set.
Orlando Woman Pleads Guilty to Making False Statements in Connection with a Residential Loan and MortgageRead the Press Release
PENSACOLA, FLORIDA – Chantal M. Lanton, 37, of Orlando, Florida, pled guilty today to two counts of making false statements to a bank in connection with her application for a residential loan and mortgage. Lanton will be sentenced by Chief U.S. District Judge M. Casey Rodgers on August 8, 2013. The guilty plea was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Lanton waived her right to be indicted by a federal grand jury and was charged in a two-count Information filed today. Count One of the Information alleged that, in March 2005, Lanton applied for a residential loan with Regions Bank, N.A., to purchase a home in Pensacola, Florida. On the loan application, Lanton significantly overstated her income, the extent of her education, and provided false information about her debts. Count Two of the Information alleged that, in February 2011, after her loan lapsed into default, Lanton falsely claimed to be an officer in the United States Air Force who was being deployed to Germany, in an effort to receive foreclosure protection benefits that are provided to service members under the Service Members’ Civil Relief Act. Lanton has never served in the U.S. Air Force, or any other branch of the U.S. military. As a result of her guilty plea, Lanton faces a possible sentence of 30 years in prison and a fine of $1,000,000 on each count.U. S. Attorney Marsh praised the work of Northwest Florida Mortgage Fraud Task Force and the Defense Criminal Investigative Service, in pursuing this investigation. Formed in July 2011, the Northwest Florida Mortgage Fraud Task Force is a partnership of the Federal Bureau of Investigation, the Okaloosa County Sheriff’s Office, and the Florida Department of Law Enforcement, and is charged with investigating mortgage fraud in the panhandle of Florida.
This prosecution is a continuation of vigorous efforts to combat mortgage fraud as part of Operation Stolen Dreams, a nationwide sweep targeting fraudulent mortgage loans. This national emphasis is the largest collective enforcement effort ever brought to bear in confronting the problem and was initiated by the Mortgage Fraud Working Group of the President’s Financial Fraud Enforcement Task Force, which was established to lead an aggressive, coordinated effort to investigate and prosecute financial crimes.
The case was prosecuted by Assistant United States Attorney Thomas P. Swaim.
Oregon, Illinois Man Sentenced to 121 Months in Federal Prison for Distributing Child PornographyRead the Press Release
ROCKFORD — An Oregon, Ill. man was sentenced today in federal court for distributing child pornography. JONATHAN LONG, 51, who was originally charged in federal court in Alaska, was sentenced by U.S. District Judge Philip G. Reinhard to 121 months in federal prison for distributing child pornography, in addition to 10 years of supervised release following his release from prison.
Long pled guilty to the charge on Nov. 16, 2012. According to the written plea agreement, Long admitted that in March 2012 he distributing visual images of a minor engaging in sexually explicit conduct via email to an individual in Alaska. Long was arrested on July 24, 2012, and has since been in federal custody.
The sentencing was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Gary J. Hartwig, Special Agent-in-Charge of Homeland Security Investigations in Chicago.
The government was represented by Assistant U.S. Attorney Michael D. Love.
Oglala Man Pleads Guilty to Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that Tim Two Bulls, age 24, of Oglala, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on May 10, 2013 and pled guilty to Sexual Abuse. The maximum penalty upon conviction is life imprisonment and a $250,000 fine.
Two Bulls was indicted for unlawfully entering the home of another person on December 16, 2011 in the Red Shirt Table Community. While in this home, Two Bulls engaged in a sexual act with a female, without her permission.
The investigation was conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
New Jersey Law Office Employee Indicted for Possessing, Distributing Images of Child Sexual Abuse from Work ComputerRead the Press Release
NEWARK, N.J. – A registered sex offender employed at a law office in Paterson, N.J., was indicted today by a federal grand jury in Newark for allegedly possessing and distributing images of child sex abuse over the Internet, U.S. Attorney Paul J. Fishman announced.
Kevin Rease, 33, of Hackettstown, N.J., was charged by complaint in April 2013 with one count of distributing images of child sex abuse over the Internet and has been held in federal custody since that time. Today’s indictment charges two counts of distribution and one count of possession of the images. Rease will be arraigned on the indictment on a date to be determined.
According to the indictment returned today and other documents filed in this case:
On March 12, 2013, an undercover FBI agent downloaded images depicting child sexual abuse from an individual using an assumed name on a public Internet-based peer-to-peer file sharing network. The investigation revealed that the individual was logged on to the network using an Internet Protocol, or “IP,” address belonging to the law office where he worked.
The FBI executed a search warrant in April 2013 at the Paterson law office, seizing digital images depicting child sexual abuse, including material involving prepubescent minors. Rease’s work computer was logged onto the peer-to-peer network at the time, under the same assumed name which had offered illegal images for download on March 12.
As a previously convicted sex offender, Rease faces a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 40 years in prison, and a $250,000 fine per count if convicted of the distribution offenses. He also faces a mandatory minimum penalty of 10 years in prison, a maximum penalty of 20 years in prison, and a $250,000 fine if convicted of the possession count.U.S. Attorney Fishman credited special agents of the FBI, Newark Division’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charge and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
13-203Defense counsel: William Ware Esq., Chester, N.J.
Rease Indictment
New Haven Woman Charged with Making Bomb Threats Against Connecticut CourthousesRead the Press Release
Deirdre Daly, Acting United States Attorney for the District of Connecticut, Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the FBI, Joseph P. Faughnan, U.S. Marshal for the District of Connecticut and Colonel Danny R. Stebbins of the Connecticut State Police announced that JENNIFER CHIRICO, 30, of New Haven, was arrested today on a federal criminal complaint charging her with making bomb threats against courthouses in Connecticut.
As alleged in the criminal complaint, on the morning of March 8, 2013, CHIRICO and others placed a total of seven anonymous threat calls to courthouses, law enforcement agencies and media outlets, all claiming that bombs had been deployed and were going to explode that morning at one or more courthouses in Connecticut. In one call to the Connecticut State Police in Middletown, CHIRICO stated that three bombs were set to go off at 11 a.m. at courthouses in Waterbury, Hartford, and New Haven.
Following her arrest, CHIRICO appeared before United States Magistrate Judge Joan G. Margolis in New Haven and was released on a $10,000 bond.
CHIRICO is charged with one count of telephonic bomb threats, which carries a maximum term of imprisonment of 10 years and a fine of up to $250,000.
Acting U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force, the U.S. Marshals Service and the Connecticut State Police. The case is being prosecuted by Assistant United States Attorney Henry K. Kopel.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]New Haven Man Sentenced to Four Years in Federal Prison for Distributing HeroinRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that JASON BRODSKY, 22, of New Haven, was sentenced yesterday by United States District Judge Vanessa L. Bryant in Hartford to 48 months of imprisonment, followed by three years of supervised release, for distributing heroin.
According to court documents and statements made in court, in August 2011, the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force initiated an investigation into a series of suspected heroin overdose cases in the greater New Haven area, including one that resulted in the death of a woman in Milford on August 16, 2011. The investigation revealed that BRODSKY and his co-defendant, Ralston Williams, rented hotel rooms in the New Haven area and sold prepackaged heroin to a variety of customers. BRODSKY gave the cash from the heroin sales that he made to Williams. Williams, in turn, would pay BRODSKY by giving him bags of heroin for his personal use.
Judge Bryant found that BRODSKY and Williams sold the heroin that caused the overdose death of the Milford woman.
On April 24, 2012, BRODSKY pleaded guilty to one count of conspiracy to possess with intent to distribute heroin.
On May 29, 2012, a jury found Williams guilty of one count of conspiracy to possess with intent to distribute heroin, one count of possession with intent to distribute heroin, and one count of possession with intent to distribute cocaine base (“crack cocaine”). On May 14, 2013, he was sentenced to 168 months of imprisonment.
This matter was investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Milford Police Department, with the assistance of the Connecticut State Police and the Bridgeport and Stamford Police Departments. The case was prosecuted by Assistant United States Attorneys Sarah Karwan and Peter Markle.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Man Pleads Guilty for Involvement in A Large Scale Stolen Identity Refund FraudRead the Press Release
Montgomery, Alabama - Glenn Powell, Jr., pleaded guilty yesterday in the Middle District of Alabama to his role in a large scale stolen identity refund fraud, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
On April 17, 2013, a federal grand jury in Montgomery, indicted Powell on conspiracy and theft of government money charges. According to court documents, Powell opened two bank accounts on which he was the only authorized signer. Between August 2009 and February 2011, at least 49 false federal income tax refunds totaling approximately $95,926 were directed to Powell’s bank accounts. Powell was able to withdraw approximately $46,423.71 in false tax refunds before the IRS stopped him. The overall scheme Powell participated in is alleged to have involved over $500,000 in false refunds.
As a result of his plea, Powell faces a maximum potential sentence of 10 years in prison. This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles M. Edgar Jr., Michael Boteler, and Greg Bailey of the Justice Department's Tax Division are prosecuting the case, with the assistance from the U.S. Attorney’s Office for the Middle District of Alabama and, in particular, Assistant U.S. Attorney Todd Brown.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Lower Brule Woman Sentenced for Assaulting, Resisting and Impeding A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota woman convicted of Assaulting, Resisting and Impeding a Federal Officer was sentenced on May 15, 2013 by U.S. District Judge Roberto A. Lange.
Lauren LaRoche, age 24, was sentenced to 12 months of imprisonment, 6 months of supervised release, and a $25 special assessment to the Federal Crime Victims Fund.
LaRoche was indicted by a federal grand jury on March 13, 2013. She pled guilty to an Information on May 15, 2013. The charge stems from an incident on February 8, 2013 wherein LaRoche, and her brother, Marty LaRoche, who has pled guilty and is awaiting sentencing, both did forcibly assault, resist, oppose, impede, intimidate, and interfere with a federal officer while the officer was engaged in the performance of his official duties.
LaRoche also pled guilty to a Petition to Revoke Supervised Release and was sentenced to 5 months of imprisonment to be served consecutively with the above sentence. That charge stems from a previous conviction regarding an original offense of Possession of a Controlled Firearm, for which she was sentenced to 18 months in custody and 2 years of supervised release.
The investigation was conducted by the Bureau of Indian Affairs and Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
LaRoche was immediately turned over to the custody of the U.S. Marshals Service.
Laredoan Convicted in International Cocaine ConspiracyRead the Press Release
Laredo, Texas – Carlos Alberto Gonzalez, 36, of Laredo, has been convicted of conspiracies to possess five kilograms or more of cocaine with the intent to distribute and international money laundering, United States Attorney Kenneth Magidson announced today.
A sealed indictment was returned by a grand jury on Nov. 6, 2012, which alleged a drug trafficking organization transported more than 200 kilograms of cocaine from 2010 to 2011, much of which was intercepted by authorities en route to Dallas. According to court documents, Gonzalez introduced a Drug Enforcement Administration (DEA) undercover agent to the source of supply in Mexico and assisted in the coordination efforts of the organization.
Gonzalez admitted he assisted in the transportation of drugs from Mexico to Dallas and the surrounding areas. He also pleaded guilty to conspiracy to commit international money laundering, admitting to the attempted transportation of $1,479,660 and a sub-machine gun with a suppressor from Atlanta, Ga., Nuevo Laredo, Mexico.
U.S. District Judge Diana Saldaña, who accepted the guilty plea today, has set sentencing for a date to be determined the future. At that time, Gonzalez faces a mandatory minimum sentence of 10 years and up to life in prison as well as a $10 million fine for the drug conspiracy and up to 20 years and a substantial fine for conspiracy to commit international money laundering. The United States is also seeking a money judgment in the amount of $5,303,660 based on the amount of cocaine and money transported by the organization during the span of the conspiracy.
The case is the result of a four-year Organized Crime Drug Enforcement Task Force investigation dubbed Operation Roadblock led by the DEA with the assistance of Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Marshals Service. Assistant United States Attorneys James Hepburn and Elizabeth Rabe are handling the case.
Jury Convicts Massachusetts State Trooper for Extorting and Threatening Local BettorRead the Press Release
BOSTON - A federal jury in Boston today convicted a Massachusetts State Police Trooper for extorting and threatening a local bettor.
The jury, which deliberated over two days, convicted John Analetto, 49, of Belmont, on one count of extortion specific to a threatening phone call he made to a bettor in the gambling business. The jury was hung on the other count of extortion.From October through December 2011, Analetto loaned money to a local bookmaker, who was a cooperating witness for the government. After learning of the bookmaker’s outstanding debts to loansharks, Analetto loaned him money in exchange for a percentage of his gambling business. Analetto loaned the bookie a total of $24,000 for these purposes and established the repayment terms as $500 principal return per week, plus interest return on the bookmaker’s gambling profits.
In various recorded meetings in December 2011, Analetto made threats in connection with the gambling business to both the cooperating witness and another bettor. Specifically on Dec. 30, 2011, Analetto made a threatening phone call to a bettor, which was video recorded. The jury also heard a voice mail message received by the bettor, in which Analetto tells him that he must pay his debt or, “2012 isn’t going to be too good for you.”
Analetto has been in custody since his arrest on Dec. 31, 2011. He faces the maximum statutory penalty of up to 20 years in prison, to be followed by three years of supervised release and a $250,000 fine. A sentencing date has not yet been set.
United States Attorney Carmen M. Ortiz, Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Office and Colonel Timothy Alben, Superintendent of the Massachusetts State Police made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption and Special Prosecutions Unit.
Joseph Christopher Birdtail Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on May 16, 2013, before U.S. Magistrate Judge Keith Strong, JOSEPH CHRISTOPHER BIRDTAIL, a 36-year-old resident of Harlem and an enrolled member of a federally recognized Indian tribe, pled guilty to abusive sexual contact. Sentencing has been set for August 27, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
On Friday, June 22, 2012, BIRDTAIL sexually abused an approximately one-and-a-half years old child. The child was taken to an emergency room where a doctor confirmed that the victim had been sexually abused.
BIRDTAIL was interviewed and admitted that he had abused the victim.
The crime occurred on the Fort Belknap Indian Reservation.
BIRDTAIL faces possible penalties of life in prison, a $250,000 fine and lifetime supervision.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Fort Belknap Tribes Law Enforcement.
Joscayne Denny Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on May 16, 2013, before U.S. Magistrate Judge Keith Strong, JOSCAYNE DENNY, a 33-year-old resident of Box Elder, pled guilty to distribution of a controlled substance. Sentencing has been set for August 16, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Danna R. Jackson, the government stated it would have proved at trial the following:
On March 30, 2012, DENNY knowingly gave two girls methamphetamine. Both girls smoked the methamphetamine out of a broken lightbulb. One girl was taken to the Northern Montana Hospital shortly after she ingested the methamphetamine. A toxicology report showed amphetamine was in her system.
DENNY faces possible penalties of 20 years in prison, a $1,000,000 fine and 3 years supervised release.
The investigation was conducted by the Federal Bureau of Investigation.
Iowa Man Sentenced for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Radcliffe, Iowa man charged with Failure to Pay Legal Child Support was sentenced on May 13, 2013 by U.S. District Judge Karen E. Schreier.
Leroy R. Boster, age 36, was sentenced to six months’ home confinement, 5 years of probation, a $100.00 special assessment to the Federal Crime Victims Fund, and child support restitution in the amount of $36,479.24.
Boster was indicted on two counts of failing to pay past due child support by a federal grand jury on June 8, 2011. He was ordered by the Third Judicial Circuit Court, Beadle County, to pay $150.00 per month to a custodial parent for his minor child, commencing April 1, 2000. The support amount was subsequently modified to $156.00 per month commencing January 1, 2007. At the time of indictment, he had not made a child support payment since December of 2009, and the total arrearage amount owed to that custodial parent was $18,423.94.
In addition, he was ordered by the Second Judicial Circuit Court, Minnehaha County, to pay $141.00 per month to another custodial parent for his minor child, commencing January 1, 1997. The same order entered a judgment in the amount of $1,569.00 for past due support and DNA tests. At the time of indictment, he had not made a child support payment since December of 2009, and the total arrearage amount owed to that custodial parent was $15,274.64. He pled guilty to the charge on May 13, 2013.
This case was investigated the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright prosecuted the case.
Individual Sentenced to 57 Months in Prison for ID Fraud and Impersonating an OSHA Official in Wake of Gulf Oil SpillRead the Press Release
Connie M. Knight, 47, previously of Belle Chasse, La., was sentenced to serve 57 months in prison in New Orleans federal court late yesterday for providing fraudulent hazardous waste safety training in the wake of the Deepwater Horizon explosion and spill, announced Ignacia S. Moreno, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division, and Dana Boente, U.S. Attorney for the Eastern District of Louisiana. In addition, Ms. Knight was ordered to pay victim restitution in the amount of $25,300.
“On the heels of the largest environmental disaster in U.S. history, Knight illegally profited from a community already suffering from the impacts of the oil spill by impersonating a federal official and raising false hopes for employment. For that she is being held accountable to the fullest extent of the law,” said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division. “The Department of Justice is committed to environmental justice and will vigorously prosecute those who victimize vulnerable communities.”
“Knight took advantage of an environmental disaster and the resulting vulnerabilities of an immigrant community,” said U.S. Attorney Boente. “Her callous crime focused on her financial gain, ignoring the potential harm to the restoration of the Louisiana coastal region.”
On Jan. 24, 2013, Knight pleaded guilty to three felony criminal charges and one misdemeanor criminal charge for creating false identification documents and impersonating a federal official. Court documents explained how, in the wake of the Deepwater Horizon oil spill, Knight impersonated a high-ranking Occupational Safety and Health Administration (OSHA) hazardous waste safety instructor and inspector in order to collect money from individuals who hoped to work on the cleanup effort that followed the spill. Knight created and used multiple false federal identifications to bolster her credibility as an OSHA employee and to convince attendees, who were primarily from the Southeast Asian fishing community, that she could ensure them lucrative employment cleaning the spill. In reality, Knight did not have any connection to OSHA, to the cleanup effort, nor did she have training in hazardous waste safety.
Daniel R. Petrole, Deputy Inspector General for the U.S. Department of Labor’s Office of Inspector General stated, “Today’s sentencing sends a strong message to those who would intentionally engage in fraudulent activity that compromises the integrity of the Department of Labor’s OSHA program.”
“The defendant not only defrauded people who were desperate for jobs, but also created a risk that poorly trained workers could expose both themselves and the public to hazardous waste that was improperly handled or cleaned up,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance.
Knight claimed her classes satisfied the various safety requirements that all individuals were to complete in order to be employed at a Deepwater Horizon hazardous waste cleanup site. Her fraudulent classes, however, lasted as little as two hours, while the legitimate certifications would take at least six days of classroom training followed by three days of on-site training. At least some attendees later gained access to hazardous waste cleanup sites based on the fraudulent certifications created by Knight.
“OSHA will not tolerate fraudulent training or unscrupulous activity when workers' health and lives may be at stake,” said Assistant Secretary of Labor for Occupational Safety and Health Dr. David Michaels. “Inadequate training jeopardizes the safety and health of workers cleaning up hazardous waste sites.”
At the sentencing, Federal District Court Judge Lance Africk considered statements from victims who recounted how Knight targeted the Southeast Asian fishing communities in southern Louisiana, many of whom did not speak or read English. Court documents explained that because many shrimp grounds were closed from the time of the spill through late 2010, Gulf fishermen had to seek other means of employment. To gain access to these fishermen and their families, Knight convinced young bilingual individuals from Southern Louisiana, who believed her to be an OSHA trainer, that she could be a source of employment for their struggling communities. She then used those individuals to publicize her trainings throughout the Vietnamese, Cambodian and Laotian neighborhoods.
According to court documents, Knight required each attendee to pay between $150 and $300 cash to enter a class, and there were at least 950 victims in the Eastern District of Louisiana. After a short presentation in English, Knight would provide false completion certifications and tell attendees to ready their vessels for BP cleanup work, which she claimed would be coming any day.
This case was investigated by the U.S. Department of Labor Office of Inspector General and the U.S. Environmental Protection Agency Criminal Investigation Division, with assistance from the Occupational Safety and Health Administration, the FBI, investigators from the Florida Fish and Wildlife Conservation Commission and the Plaquemines Parish, La., Sheriff’s office.
The case was prosecuted by Patrick M. Duggan of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division and Emily K. Greenfield of the U.S. Attorney’s Office for the Eastern District of Louisiana.
Indictment Charging Eight York City Men Affilliated with the Latin Kings Street Gang with Drug Trafficking UnsealedRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced the unsealing of an indictment returned by a federal grand jury in Harrisburg on April 17 charging eight men affiliated with the Latin Kings street gang for drug trafficking in York City. The indictment was unsealed today following the arrests and initial appearances.
According to United States Attorney Peter J. Smith, the indictment resulted from a two-year investigation by the Pennsylvania State Police and the York County Drug Task Force, with the assistance of the Federal Bureau of Investigation. In that investigation, hundreds of purchases of heroin, cocaine, and crack cocaine were made from dozens of individuals affiliated with the Latin Kings street gang. That investigation resulted in the arrest of dozens of individuals in a sweep that began on February 6, 2013, in York County.
The United States Attorney’s Office indicted the following individuals for their role in this larger drug trafficking conspiracy: August Ranalli, age 31; Marcus Garcia, age 26; David Ramsey, age 31; Antonio Navaro-Garcia, age 21; Brandon Jones, age 24; Michael Enriquez, age 28; Daniel Pacheco-Morales, age 41; and Carlos Martinez-Villalongo, age 36. All of the defendants are from York, Pennsylvania.
An indictment of August Ranalli was originally returned on December 12, 2012, in which he was charged with crack cocaine distribution. This superseding indictment, which was returned on April 17, 2013, expanded the time period of the drug trafficking activities, included heroin and cocaine, as well as charging seven other co-conspirators.
Prosecution is assigned to Assistant United States Attorney Michael A. Consiglio and Special Assistant United States Attorney David Sunday from the York County District Attorney’s Office.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In these particular cases, the maximum penalty under the federal statute is life imprisonment for the defendants and a term of supervised release following imprisonment and a fine. Each defendant also faces a mandatory minimum period of incarceration of ten years. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
* * * *Heroin Found in Luggage at IAH Lands Mexican Woman in Federal PrisonRead the Press Release
HOUSTON – Yessica Chanel Cabanillas-Torres has been ordered to prison after smuggling nearly two kilograms of heroin in her luggage as she arrived at George Bush-Intercontinental Airport (IAH) from Ecuador, United States Attorney Kenneth Magidson announced today.Cabanillas-Torres, 21, of Sonora, Mexico pleaded guilty to conspiracy to possess with the intent to distribute heroin Feb. 7, 2013.
Today, United States District Judge Gray H. Miller, who accepted the guilty plea, handed Cabanillas-Torres a term of 36 months in federal prison. Cabanillas-Torres is expected to face deportation proceedings following her release from prison.
At the hearing, Cabanillas-Torres admitted that on Oct. 4, 2012, she arrived at IAH as a passenger aboard a flight from Quito, Ecuador. Her ticket indicated she was continuing her travel through Houston to Newark, N.J. Upon her arrival at IAH, Customs and Border Protection (CBP) officers questioned Cabanillas-Torres about her reasons for visiting the United States and examined her and her luggage for potentially prohibited items or contraband.
During the examination, she presented herself and two hard-sided suitcases to CBP officers for examination. Officers removed the contents of the suitcases and noticed the suitcases seemed to be unusually heavy. Officers then x-rayed the two suitcases at which time anomalies were discovered along the inner frame of each bag. Based on these anomalies and the weight of the suitcases, officers drilled into the two suitcases and discovered a brown powdery substance within the walls of each suitcase which field tested positive for the presence of heroin. Officers then dismantled one of the suitcases and found several small bundles of heroin inside with a gross weight of approximately 1.2 kilograms. Officers then left the second suitcase intact and sent it to the CBP forensic laboratory to be disassembled in order to remove the suspected heroin inside. The second suitcase was also found to contain bundles of heroin and packaged in a similar fashion to the first suitcase. The total amount of heroin found was approximately 1.934 kilograms with a purity of approximately 82.7%
Cabanillas-Torres indicated she had been hired by an individual in Mexico to transport luggage from Quito to Newark in exchange for $4,000. She stated she did not know the identity of the person in Newark to whom she was supposed to deliver the luggage, but knew the luggage contained drugs and was intending to deliver these suitcases to another person in the U.S.
Cabanillas-Torres will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by Homeland Security Investigations and CBP. Assistant United States Attorney Arthur R. Jones is prosecuting the case.
Hanover Man Sentenced to 18 Months in Federal Prison for Fraud Scheme Involving EBay SalesRead the Press Release
ROCKFORD — A Hanover, Ill. man was sentenced today by U.S. District Judge Philip G. Reinhard in federal court in Rockford for wire fraud. ANTHONY F. DEFILIPPO, 56, of Hanover, was sentenced to 18 months imprisonment, to be followed by 3 years of supervised release, 9 months of which DeFilippo must spend in home confinement, in addition to restitution in the amount of $53,664.61. DeFilippo pled guilty to wire fraud on Nov. 21, 2012, admitting that from 2009 to 2011 he devised and engaged in a scheme to defraud and obtain money, funds, and property from Wal-Mart.com, Inc., credit card issuers, and credit card holders by means of materially false and fraudulent pretenses, representations, and promises.
According to the written plea agreement, DeFilippo admitted that he used his eBay account to sell various types of merchandise, such as vacuum cleaners and sewing machines, that another participant in the scheme then fraudulently obtained from Wal-Mart.com, Inc. through the unauthorized use of names and credit cards numbers of other credit cardholders. The merchandise was then shipped to the address of the person that had purchased the item through DeFilippo’s eBay account, but containing the name of the victim credit cardholder. DeFilippo further admitted that he arranged for the money eBay received from the eBay buyers to be paid to DeFilippo through PayPal debit cards. DeFilippo periodically withdrew money from the debit cards, keeping a portion for himself and sending the rest to other persons, including persons in foreign countries such as the Ukraine.
The sentencing was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Frank Benedetto, Special Agent-in-Charge of the Chicago Field Office of the U.S. Secret Service; Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Hiram Grau, Director of the Illinois State Police.
The government was represented by Assistant U.S. Attorney Michael D. Love.
Graves County, Kentucky Resident Ordered to Pay $2,500 Fine and Receives Two Year Migratory Birds Hunting BanRead the Press Release
– Baited mourning doves for hunting
PADUCAH, Ky. – A Graves County, Kentucky, resident was sentenced by United States Magistrate Judge Lanny King, pursuant to a plea agreement, to pay a $2,500 fine, and $35 in special penalty assessments, for baiting and hunting mourning doves, announced United States Attorney David J. Hale. Judge King also sentenced Michael D. Cartwright, age 63, as a condition of probation, to not hunt migratory birds in the United States for a period of two years.
Cartwright pleaded guilty and was sentenced on May 16, 2013, to two counts of violating the Migratory Bird Treaty Act, a Federal wildlife statute which protects migratory birds and regulates the hunting of migratory game birds. Cartwright was charged with placing millet and milo seed, on a field and land adjacent to the field, for the purpose of luring mourning doves and for hunting mourning doves over bait. The investigation by a Kentucky Conservation officer, documented that on August 25, 2012, millet and milo grass seed were present on the Cartwright farm, located in Sedalia, Kentucky, in order to attract migratory game birds. The investigating officer returned on August 29, 2012, and documented that the seed had been disked into the soil, in the field used for the annual dove hunt. Cartwright admitted that he had concealed the bait prior to the dove hunt.
The case was prosecuted by Assistant United States Attorney Randy Ream, and it was investigated by the Kentucky Department of Fish and Wildlife Resources and the U.S. Fish & Wildlife Service.
Georgia Man Indicted on Federal Gun Trafficking ChargesRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned a three-count indictment charging Liddon Young, 31, of Stone Mountain, Georgia with conspiracy to unlawfully deal firearms without a license and unlawfully dealing in firearms without a license, as well as selling firearms to a convicted felon. The charges carry a maximum sentence of 20 years in prison, a fine of $750,000 fine or both.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that according to the indictment, between August 2012 and February 6, 2013, Young conspired with convicted felon Paul Davis to unlawfully traffic firearms from the Atlanta, Georgia area to Rochester. The Indictment alleges that Davis traveled to the Atlanta, Georgia area and obtained multiple firearms and rounds of ammunition from Liddon Young for illegal re-sale on the black market in Rochester. Davis then transported the firearms and ammunition by vehicle himself, or arranged their vehicular transportation by others to. Young himself also transported firearms from Georgia to Rochester, where he sold firearms and rounds of ammunition to felons. The indictment also alleges that Davis and others deposited money into a bank account in Young’s name as payment for the firearms.
Davis was arrested February 6, 2013 after selling a Georgia pistol to a confidential informant. Multiple federal search warrants executed resulted in the seizure of 10 additional firearms and hundreds of rounds of ammunition. Young was arrested in Rochester on February 8, 2013 in possession of a loaded .380 caliber pistol.
Paul Davis was convicted on gun charges in April 2012 and is awaiting sentencing.
“Working with our law enforcement partners, this Office will continue to target the black market pipelines which funnel illegal firearms into our community,” said U.S. Attorney Hochul. “In addition, we will work equally as hard to keep guns out of the hands of convicted felons.”
The indictment is the culmination of an investigation on the part of on the part of Special Agents of the Bureau of Alcohol Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Joseph Anarumo and the Rochester Police Department, under the direction of Chief James Sheppard.
Gang Leader Sentenced for Multiple Armed Home InvasionsRead the Press Release
Defendant’s Continuous Violent Actions Draws Over 78-Year Prison Sentence
Corey Lamont Lanier a/k/a Foot, 34, of Nashville, was sentenced yesterday by Chief U.S. District Judge William Haynes to 946 months (78 years and 10 months) in prison, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee and Jeff Fulton, Special Agent in Charge the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Nashville Field Division. Lanier was found guilty in December 2012 by a federal jury for his role in planning and carrying out three armed home invasion robberies.“This defendant carried out violent armed home invasions, targeting drug dealers with impunity,” said Acting U.S. Attorney David Rivera. His crimes endangered others and are the type of crimes that can lead to completely innocent people being killed. This sentence ends the violence.”
Jeff Fulton, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives, said “ATF will remain vigilant in aggressively investigating violent criminals within the City of Nashville who utilize firearms to endanger the safety of our citizens.”
Lanier was convicted on three counts of conspiring to commit robberies affecting interstate commerce, as well as three counts of brandishing a firearm during these crimes.
According to evidence presented at trial, Lanier was an “OG” (Original Gangster) - the highest rank in the 98 Mafia Crips street gang. Lanier organized and participated in three armed home invasions that occurred in Nashville in 2009. Each home invasion targeted a location or individual suspected by Lanier and his co-conspirators to be involved in narcotics trafficking. During each instance, a group of three to four armed assailants burst into a home and held those present at gunpoint while demanding drugs and drug proceeds. During two of these robberies, young children were present when armed assailants kicked down the door, burst into the home, and threatened to kill the residents inside.
On November 17, 2009, Metropolitan Nashville Police Officers, including the SWAT Team, responded to the third home invasion and arrested the assailants, who had conspired with Lanier to commit the robbery. Multiple firearms used in the home invasions were recovered. Lanier was not present at the scene of that home invasion, and was later arrested and charged with these offenses as a result of the local and federal investigation.
After his conviction and while pending sentencing, Lanier had another person create a Facebook page which included the government’s witness list with photographs of some of the victims and witnesses who Lanier described as “rats.”
At sentencing, Chief Judge Haynes found that Lanier used electronic media to “malign, harass, and intimidate government witnesses,” that Lanier’s actions posed a “particularly serious threat to these victims and witnesses” especially in light of Lanier’s status as a significant gang leader, and that Lanier continued pursuing “violent actions to terrorize people even after trial.”
The court also found Lanier to be a career offender, with prior felony convictions which included a prior robbery conviction.Based partly on Lanier’s continuing harassment and intimidation of victims and witnesses, and Chief Judge Haynes’ finding that Lanier committed “particularly egregious violent offenses which affected the victims in a horrifically emotional way,” Chief Judge Haynes denied Lanier’s request for leniency and instead imposed the maximum sentence within the Federal Sentencing Guidelines. The sentence also prohibited Lanier from contacting any of the victims, including through the Internet. Since there is no parole from federal sentences, Lanier will likely serve the rest of his life in federal prison.
The investigation was conducted by the ATF and the Metropolitan Nashville Police Department. Assistant U.S. Attorneys Sunny A.M. Koshy and William F. Abely prosecuted the case.
Former University Community Hospital Staff Member Sentenced for Tax Fraud and Aggravated Identity TheftRead the Press Release
Tampa, Florida - U.S. District Judge Virginia M. Hernandez Covington yesterday sentenced Tanya Cullens to three years and three months in federal prison for conspiracy to commit tax fraud and aggravated identity theft. As part of the sentence, the court also entered a forfeiture money judgment in the amount of $44,080.00, which constitutes the proceeds of the tax fraud conspiracy. In addition, the court ordered Cullens to pay $85,055.00 in restitution to the Internal Revenue Service and Jabil Circuit, Inc. for a separate fraud offense. Cullens pleaded guilty on February 12, 2013.
According to court documents, in 2012, Cullens was a member of the cleaning staff at University Community Hospital. On January 17, 2012, she stole a patient list from the hospital. This list contained 48 patient names, dates of birth, and social security numbers of persons treated at University Community Hospital on that same date. Shortly after stealing the patient list from the hospital, Cullens provided the list to her friend and co-conspirator, Alesia Spivey, who used the list to file fraudulent tax returns with the IRS. None of the individuals whose names, dates of birth, and social security numbers appeared on these fraudulent tax returns knew that the conspirators were filing tax returns on their behalf. In total, ten fraudulent tax returns filed by the conspirators claimed approximately $79,204.00 in false tax refunds. Ultimately, the IRS paid out $44,080.00 in refunds to the conspirators.
Alesia Spivey pleaded guilty to her role in the conspiracy in December 2012. She is scheduled to be sentenced on June 19, 2013.
In the year prior to this offense, Cullens was involved in a scheme to defraud Jabil Circuit, Inc. On three occasions during the course of this unrelated fraud conspiracy, Cullens pretended to be an employee of Jabil Circuit for the purposes of convincing Jabil Circuit's relocation benefits contractor to send three lump sum payments to bank accounts controlled by Cullens. These lump sum payments were for false moving expenses that were never incurred by Cullens or any employee of Jabil Circuit. In all, Jabil Circuit suffered a loss of $40,975.00 due to the wire fraud scheme perpetrated by Cullens and Spivey.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Simon Gaugush.
Former Owner of Spring Hill Construction Companysentenced to 36 Months in PrisonRead the Press Release
Stephen McLaughlin, 46, of Pelham, New Hampshire, former owner of EquipLinq, Co., a Spring Hill construction equipment company, was sentenced on May 13, 2013, by U.S. District Court Judge Todd J. Campbell to serve 36 months in prison, following his conviction on February 8, 2013, of two counts of wire fraud and one count of aggravated identity theft, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.
According to testimony presented at trial, on at least four occasions while serving as the president of EquipLinq, McLaughlin forged the signatures of EquipLinq investors and customers on false documents that he used to secure financing for the company’s purchase and/or lease of construction equipment inventory. Through his fraudulent activities, McLaughlin investors and creditors were defrauded of more than $100,000.
“Identity theft in various forms, is one of the fastest growing crimes in the United States and is a part of almost every financial crime,” said Acting U.S. Attorney David Rivera. “The U.S. Attorney’s Office is committed to working diligently with our law enforcement partners to prosecute those who commit fraud using theft and those who prey on the unsuspecting public.”
“This sentence validates the FBI’s commitment to relentlessly pursue those who use identity theft to prey on unsuspecting victims and to defraud lenders,” said Gregory W. Bowden, Acting Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation.
This case was investigated by the FBI. The case was prosecuted by Assistant U.S. Attorneys Darryl A. Stewart and Kathryn B. Ward.
Former Henderson County Business Owner Sentenced to 12 Months for Trafficking in Counterfeit GoodsRead the Press Release
OWENSBORO, Ky. – The former owner of Tree Tops business located in Henderson County, Kentucky was sentenced to 12 months and one day, by Chief Judge Joseph H. McKinley, Jr., today in United States District Court, for trafficking in counterfeit goods announced David J. Hale, United States Attorney for the Western District of Kentucky. There is no parole in the federal system.
Yorel Petrie, of Henderson, Kentucky, pleaded guilty on February 20, 2013, to a one count federal indictment returned on September 12, 2012. According to the plea agreement, between January 2008 and October 6, 2009, Petrie, while owner and operator of Tree Tops, trafficked in hats, shoes, and clothes, while knowingly using counterfeit marks to represent trademarks then owned and registered with the U.S. Patent and Trade Mark Office. Examples of the spurious marks the defendant knowingly used, which were identical to or substantially indistinguishable from marks that were then in use and registered for hats, shoes, or clothes include: the Nike “Swoosh” trade mark, the Nike “Jumpman” trademark, the Polo Ralph Lauren “polo by Ralph Lauren” tag, the Major League Baseball Logo, the NBA logo “Jerry West” silhouette, the Ed Hardy stylized cursive logo, and the Lacoste “alligator” logo.
Petrie admitted in court that the purpose of the Tree Tops business was the importation and sale of goods bearing counterfeit trademarks. Further, Petrie admitted that the use of the counterfeit marks and logos was likely to cause confusion and deceive customers.
This case is being prosecuted by Special Assistant United States Attorney Micah R. Reyner and is being investigated by the Federal Bureau of Investigation (FBI).
Former CEO of London-Based Company Pleads Guilty to Federal Charge in $2.1 Million Fraud Scheme-Defendant Used Nearly $1.7 Million of Proceeds to Buy Home in Great Falls, Va.-Read the Press Release
WASHINGTON – Kevin Richard Halligen, 51, an Irish citizen, pled guilty today to wire fraud, a federal charge stemming from a scheme in which he defrauded $2.1 million from a Netherlands-based commodities trading company, announced U.S. Attorney Ronald C. Machen Jr. and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Halligen pled guilty to one count of wire fraud, the first of two counts of an indictment that was returned against him in 2009 in the U.S. District Court for the District of Columbia. As part of the plea agreement, the government agreed to dismiss the second count of the indictment, which was a money laundering charge stemming from the same scheme. The charge of wire fraud carries a statutory maximum of 20 years in prison and a fine of up to $250,000. Under federal sentencing guidelines, the parties agreed that Halligen’s likely range would be a prison term of 33 to 41 months and a fine between $7,500 and $75,000.
Under the plea agreement, Halligen also must pay $2.1 million in restitution to the company that was the victim of his scheme.
The Honorable Colleen Kollar-Kotelly scheduled sentencing for June 27, 2013.
The wire fraud charge stems from actions taken by Halligen in 2006 and 2007, when he was the Chief Executive Officer of Red Defence International (RDI), a London-based security consulting and crisis management firm, which was hired by Trafigura Beheer BV (Trafigura), a Netherlands-based international commodities trading company, and its London-based law firm, Waterson Hicks. Trafigura hired RDI as a consultant in crisis management after two Trafigura executives were captured and imprisoned in the Ivory Coast while visiting there for the purpose of determining the company’s next steps to address an environmental issue caused by the leakage of toxic waste material from Trafigura vessels in an Ivory Coast port.
While employed by Trafigura, Halligen claimed to have incurred $2.1 million in expenses related to pursuing a strategy in the United States aimed at convincing the United States to assist in securing the release of the Trafigura executives; in reality, Halligen spent the money on a home in Great Falls, Va., which was to be his personal residence, as well as other personal expenses, according to the government’s evidence.
“This CEO exploited a company desperate to secure the release of its executives from a foreign prison,” said U.S. Attorney Machen. “He conned the company out of $2 million he claimed would be used to support his efforts to rescue them, but instead used the money to buy a six-bedroom mansion. The extradition and imprisonment of this CEO demonstrates the strength of our resolve to prosecute corporate fraud.”
“Instead of assisting in the release of two executives imprisoned in the Ivory Coast, Mr. Halligen utilized the money paid to him to support his own lavish lifestyle,” said Assistant Director in Charge Parlave. “Together with prosecutors, the FBI will continue to pursue individuals who devise schemes to defraud companies of money for services never provided to them.”
According to a Statement of Offense, signed by the defendant as well as the government, at the request of Trafigura, Waterson Hicks hired RDI in October 2006 to help secure the release of two Trafigura executives who were arrested and detained in Abidjan, Ivory Coast. The arrests followed an environmental spill off the coast of Abidjan. Under a contract that took effect in October 2006, RDI was to provide security intelligence and public relations services related to Trafigura’s presence in the Ivory Coast and to assist with facilitating the release of the Trafigura executives. Under the contract with RDI, Waterson Hicks paid RDI and then, in turn, the law firm was reimbursed by Trafigura.
During November 2006, after other efforts to secure the executives’ release proved unsuccessful, Halligen suggested that the U.S. government should be involved with facilitating negotiations with the Ivory Coast. His stated strategy was to utilize his contacts in the United States to encourage Ivory Coast officials to release the executives. Halligen said the “American Strategy” would cost an additional $2.1 million, on top of the money RDI already was receiving.
The $2.1 million supposedly was to be used to pay expenses incurred by Halligen in the United States to hire consultants and lobbyists to influence officials in the United States on Trafigura’s behalf. In December 2006, Halligen was informed that the law firm had received the $2.1 million from Trafigura. Then, in January 2007, Halligen told the law firm to wire $2.1 million from their bank account in London to his personal bank account in the United States.
Between November 2006 and January 2007, Halligen traveled to the United States on numerous occasions, claiming to have met with U.S. officials in Washington, D.C., allegedly in furtherance of the “American Strategy.” While in Washington, D.C., he began dating a woman who resided in the area and subsequently became engaged to her.
Halligen gave his fianceé a $2 million budget to find a suitable house in which they would live after their marriage. Shortly thereafter, she found a six-bedroom, 4 ½-bathroom residence in Great Falls, Va. On Jan. 11, 2007 - the day after $2.1 million was wired to Halligen’s personal bank account for the American strategy - Halligen wired nearly $1.7 million from his account to complete the purchase of the Great Falls residence.
None of the proceeds from the $2.1 million payment from Waterson Hicks to RDI were ever directed toward reimbursement of expenses related to the “American Strategy.” In addition to spending nearly $1.7 million on the purchase of the Great Falls residence, the rest of the money was spent on other personal expenses.
The Trafigura executives ultimately were released in February 2007.
At the time of his indictment in November 2009, Halligen was no longer residing in the United States. On Nov. 25, 2009, he was arrested at a hotel in Oxford, the United Kingdom, so that he could be extradited to the United States. At the time of his arrest, Halligen was using an alias. Subsequent to his arrest in the United Kingdom, Halligen litigated issues surrounding his extradition to the United States. He ultimately was extradited in December 2012.
Halligen was incarcerated in the United Kingdom from the date of his arrest in November 2009 until his extradition in December 2012. When he was presented for his initial appearance in the United States District Court for the District of Columbia, in December 2012, he was ordered to be held without bond and he has been incarcerated since that time. Halligen will continue to be incarcerated while he awaits his sentencing date.
In announcing the plea, U.S. Attorney Machen and Assistant Director in Charge Parlave commended the work of the Special Agents from the FBI’s Washington Field Office who handled the case. They also expressed appreciation to those who worked on the case for the U.S. Attorney’s Office, including paralegals Donna Galindo, Tasha Harris, and Krishawn Graham. Finally, they commended the efforts of Assistant U.S. Attorneys Maia L. Miller and Matt Graves, who are prosecuting the case, and former Assistant U.S. Attorney Vasu Muthyala who investigated the matter.
13-173Former Alexandria Doctor Receives 70 Months in Prison for Conspiring to Distribute OxycodoneRead the Press Release
ALEXANDRIA, Va. – Larren Wade, 55, of Venice, Fl., a former doctor who had a medical practice in Alexandria, Va., was sentenced to 70 months in prison, followed by 3 years of supervised release for conspiring to distribute oxycodone.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration (DEA)’s Washington Field Division; Earl Cook, Alexandria Chief of Police; and Colonel W. Steven Flaherty, Virginia State Police Superintendent, made the announcement after the sentenced was pronounced by United States District Judge Claude M. Hilton.
According to court documents, Wade admitted that between March and July 2010, he issued thousands of prescriptions for pain medications, sometimes exceeding 2,000 pills per patient each month. Wade frequently issued these prescriptions without conducting a physical examination, without reviewing prior medical records, and without establishing a treatment plan. During this time, Wade also operated an almost strictly cash business and would typically see between 30 and 50 patients per day, but in at least one instance saw more than 100 patients in a single day and collected nearly $10,000 in cash.
Court records indicate that Wade was the subject of an undercover operation by law enforcement officials, and he issued numerous prescriptions for oxycodone to two undercover officers for no legitimate medical purpose. In addition, the undercover officers asked if they could obtain a prescription for a “friend” who did not exist. As a part of the conspiracy, two prescriptions for oxycodone were written for the fictitious patient after an $85 office visit fee was paid. After the transaction was completed, Wade created a patient file for the fictitious patient.
Oxycodone is the active ingredient in brand name pills such as OxyContin, Roxicodone and Percocet. It is a Schedule II controlled substance and can be useful in assisting with pain management issues; however, it has a high potential for abuse and abuse of the drug can lead to severe psychological or physical dependence.
This case was investigated by the DEA’s Washington Field Division, FBI’s Washington Field Office, Virginia State Police, and the Alexandria Police Department. Special Assistant United States Attorneys Stacey Luck and Elizabeth N. Eriksen are prosecuting the case on behalf of the United States.
This case is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation dubbed Operation Cotton Candy, which has been focusing on the illegal distribution by numerous doctors, pharmacists, nurses, and patients of pain medication. This OCDETF matter has secured more than 200 drug-trafficking convictions and guilty pleas.
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.Florida Woman Indicted on Conspiracy for Role in Bringing 143 Haitian Nationals to the United States on Fraudulently Obtained Guest Worker VisasRead the Press Release
Today, a federal judge unsealed a three-count indictment returned by a grand jury in the Southern District of Florida charging Jetta McPhee, 59, of Tamarac, Fla., for her role in bringing 143 Haitian nationals to the United States on fraudulently obtained guest worker visas that McPhee and her co-conspirator secured based on false representations that there were jobs awaiting those workers.
The indictment alleges that from April 2008 to July 2009, McPhee conspired with Marie Nicole Dorval to commit visa fraud by making false representations to the federal government about the availability of construction jobs in order to secure H-2B guest worker visas for Haitian nationals. Dorval previously pleaded guilty to visa fraud conspiracy in connection with her role in the scheme. According to the indictment, McPhee prepared a fraudulent contract falsely representing that an American company needed 150 full-time construction workers for 10 months at an hourly wage of $8.42. McPhee and her co-conspirator then submitted this fraudulent contract to the U.S. Department of Labor and to U.S. Citizenship and Immigration Services in connection with their application for the H-2B guest worker visas.
According to the indictment, McPhee and her co-conspirator recruited workers in Haiti, promising them full-time employment and other benefits, including the possibility of obtaining permanent residency, and charged the workers fees for the employment opportunity. The indictment alleges that after several recruits were denied visas, McPhee traveled to the U.S. embassy in Port-au-Prince, Haiti to facilitate approval of the visas based on the false representations of available construction jobs. According to the indictment, 143 Haitian nationals ultimately entered the U.S. on guest worker visas the co-conspirators obtained based on the false representations. When the workers arrived, there were no jobs for them.
The indictment charges McPhee with one count of conspiracy to commit visa fraud, and two counts of visa fraud for aiding and abetting the presentation of fraudulent documents to the U.S. Department of Labor and to the U.S. Citizenship and Immigration Services.
If convicted, McPhee could face a maximum sentence of five years in prison and a fine of $250,000 on the conspiracy charge, and 10 years in prison and a fine of $250,000 on each of the two visa fraud charges.
This case is being investigated by the Department of Homeland Security, Homeland Security Investigations, and the Department of Labor Office of the Inspector General. The case is being prosecuted by Trial Attorneys Chiraag Bains and Roy Conn from the Justice Department’s Civil Rights Division.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.