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29 January 2013
Two Individuals Involved in Pill Ring Sentenced in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - Two individuals sentenced on January 28, 2013, in United States District Court in Wheeling by Judge Frederick P. Stamp, Jr. for their roles in a Florida to West Virginia pill ring.
United States Attorney William J. Ihlenfeld, II, announced that:
JOHN T. BOWIE, III, age 39, of Longwood, Florida, was sentenced to six months imprisonment to be followed by three years of supervised release with the first six months of his supervised release to be served on home confinement. BOWIE entered a plea of guilty on November 28,2013, to “Possession with Intent to Distribute Schedule II Controlled Substances” on September 12, 2012, in Moundsville. BOWIE was remanded to the custody of the United States Marshal pending designation to a Federal institution.
AMY M. YONTZ, age 23, of Moundsville, West Virginia, was sentenced to three months imprisonment to be followed by three years of supervised release. YONTZ entered a plea of guilty on December 6, 2012, to “Aiding and Abetting the Distribution of Oxycodone” on April 17, 2012, in Moundsville. YONTZ, was remanded back to state custody, where she is facing state charges for felony child neglect and driving under the influence.
In a joint investigation, involving the Marshall County Sheriff’s Department, the DEA, United State Postal Service, and the West Virginia State Police, beginning in the spring of
2012, agents received information that an apartment in Marshall County was being used to distribute pills being brought to West Virginia from Florida typically via rental vehicles. During the investigation, two traffic stops occurred during which $5,500 in drug proceeds were seized which will be forfeited to the United States as proceeds from the drug activity.This case was prosecuted by Assistant United States Attorney John C. Parr.
Two Grey Hills, N.M., Man Sentenced to a Year and a Day in Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – This morning a federal judge in Albuquerque sentenced Travis Cohoe, 44, a member and resident of Navajo Nation who resides in Two Grey Hills, N.M., to a year and a day in prison for his assault conviction. Cohoe will be on supervised release for three years after he completes his prison sentence. Cohoe also was ordered to pay $7,176.41 in restitution to the victim of his crime.
Cohoe was charged on June 7, 2011, in a two-count indictment with assault resulting in serious bodily injury and assault with a dangerous weapon. The indictment alleged that Cohoe assaulted a Navajo man and caused him serious bodily injury on April 13, 2010, on the Navajo Indian Reservation.
On Sept. 24, 2012, Cohoe pled guilty to Count 1 of the indictment charging him with assault resulting in serious bodily injury. During his plea hearing, Cohoe admitted that on April 13, 2010, he seriously injured a Navajo man by running over him with his vehicle during the course of an argument. The victim sustained a broken left femur, broken left wrist, broken facial bones, a concussion, and various abrasions as a result of the assault. Cohoe was intoxicated when he committed the assault. Cohoe has been in federal custody since entering his guilty plea.
Count 2 of the indictment was dismissed after sentence was imposed on Cohoe.
The case was investigated by the Farmington office of the FBI and the Shiprock Division of the Navajo Nation Department of Public Safety, and was prosecuted by Assistant U.S. Attorney Jack E. Burkhead.
Tonawanda Man Sentenced for Possession of Child PornographyRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney Williams J. Hochul, Jr. announced today that Anthony F. Amato, Jr., 40, of Tonawanda, N.Y., who was convicted of possession of child pornography, was sentenced to three years in prison and five years supervised release by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that on December 17, 2007, a search warrant was executed at the defendant's residence. Officers found three videos and 17 images of child pornography on a computer and disks. Amato admitted that he obtained the videos and images over the internet.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Christopher M. Piehota, Special Agent in Charge and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda. Additional assistance was provided by the Western New York Regional Computer Forensics Laboratory, which conducted the forensic analysis of the computer.
Tohono O’odham Man Sentenced to 15 Years in Prison for Killing Rival Gang MemberRead the Press Release
TUCSON, Ariz. – On Jan. 28, 2013, Jalen Michael Montana, 36, of Sells, AZ, was sentenced by U.S. District Judge Cindy K. Jorgenson to 15 years in the federal Bureau of Prisons. Montana was sentenced following a guilty plea on Sept. 10, 2012, to one felony count of voluntary manslaughter for the New Year’s Eve stabbing of another Tohono O’odham member.
On Dec. 31, 2009, Montana and the 17 year old victim, members of rival gangs, were both attending a dance on the Tohono O’odham Indian Reservation. Following a brief confrontation earlier that evening, Montana re-approached the victim on the dance floor, just as midnight approached, and stabbed him twice in the chest. Tohono O’odham police arrived minutes later and began administering CPR. However, the victim’s heart had been punctured and he died almost immediately. Montana fled the scene. He was eventually captured by Tohono O’odham authorities and indicted for murder by a federal grand jury on May 11, 2011.
The investigation in this case was conducted by the Tohono O’odham Police Department and the Federal Bureau of Investigation, Tucson Office. The prosecution was handled by Micah Schmit, District of Arizona, Tucson.
CASE NUMBER: CR-11-1750-TUC-CKJ
RELEASE NUMBER: 2013-010_MontanaFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Todd County, Kentucky Woman Sentenced for Filing False Income Tax Returns and Identity TheftRead the Press Release
BOWLING GREEN, Ky. – A Todd County, Kentucky woman was sentenced to 41 months in prison followed by a 3 year period of supervised release today, by Senior Judge Thomas B. Russell, for filing a false income tax return with the Internal Revenue Service (IRS), aiding and assisting in the preparation of false income tax returns filed with the IRS, and identity theft, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Louisa A. Edmonds, age 44, of Elkton Kentucky, was charged in a 24 count federal indictment on November 9, 2011. Edmonds pleaded guilty on August 29, 2012 to all 24 counts including five counts of filing a false income tax return with the IRS, fifteen counts of aiding and assisting in the preparation of false income tax returns filed with the IRS, and four counts of identity theft.
During the plea hearing, Edmonds admitted that she filed false income tax returns for 2005 through 2009, for herself, that contained various false deductions including those for dependents, Schedule A medical and dental expenses, charitable contributions, attorney and accounting fees, and fraudulent credits including the Child Tax Credit, the Additional Child Tax Credit, the First-Time Homebuyer Credit, and the Earned Income Tax Credit. Additionally, Edmonds admitted that she prepared false income tax returns for others that claimed deductions and credits that they were not entitled to receive. These fraudulent items include false dependents, fraudulent filing status, First-Time Homebuyer Credit, Earned Income Tax Credit, and Child Tax Credit. Edmonds agreed to an entry of an order of restitution in the amount of $37,139.00 to the IRS.
During the hearing Edmonds also admitted that she knowingly used the identification of another person without his/her permission to make a false claim against the United States by filing a false income tax return with the IRS.
This case was prosecuted by Assistant United States Attorney Bryan Calhoun and was investigated by the IRS division of Criminal Investigation.
Three Federally Indicted in Tax Fraud SchemeRead the Press Release
TALLAHASSEE, FLORIDA B Three defendants have been charged with conspiring to defraud the United States in the filing of false tax returns. The 31-count indictment, unsealed today, also charges wire fraud, false claims, and aggravated identity theft. The indictment was announced today by Pamela C. Marsh, U.S. Attorney for the Northern District of Florida.
Amber Sasha-Rashawn Simmons, 22, and Joshua Clayton Thomas, 23, both of Tampa, and Spencer Larry Parson, 25, of Tallahassee, are charged with conspiring to file false claims for more than $818,000 in federal tax refunds between August 2011 and June 2012. The indictment alleges that the conspirators created the fraudulent returns using taxpayer identification numbers and other personal identifying information stolen from both living and deceased individuals, who had been patients of the Tallahassee Memorial Hospital.
In addition to conspiracy, Simmons, Thomas, and Parson are also charged with ten substantive counts of filing false claims against the United States and ten counts of wire fraud. The defendants also face charges of aggravated identity theft based upon the unauthorized use of victims’ personal identifying information.
If convicted, the defendants face maximum sentences of ten years in prison for conspiracy, five years for filing false claims, and twenty years for wire fraud. If convicted of aggravated identity theft, Simmons, Thomas, and Parson each face a separate mandatory minimum term of two years’ imprisonment, which must be served consecutively to any other sentence.
U.S. Attorney Marsh commended the work of the Internal Revenue Service – Criminal Investigations, the United States Postal Inspection Service, and the Leon County Sheriff’s Office, whose joint investigation led to the indictment in this case.
The government’s case is being prosecuted by Assistant U.S. Attorney Jason Coody.
- The case is being prosecuted as part of a Department of Justice initiative to fight stolen identity refund fraud (SIRF). In September of last year, the Department issued Tax Division Directive 144, which sets forth expedited Department review procedures for SIRF cases, enabling law enforcement to respond quickly and effectively to the grave challenges presented in SIRF cases and to prevent the victimization of innocent taxpayers whose identities are stolen by fraudsters.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government's burden to prove guilt beyond a reasonable doubt in a court of law.
Three Charged with Improper Entry into the United StatesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigrations and Customs Enforcement, announced that three individuals were charged with being in the United States illegally in separate cases.
According to United States Attorney Peter J. Smith, Informations were filed Monday against: Adolfo Lopez-Perez, age 24, and Antonio Rios, age 42, natives and citizens of Mexico, both found in Adams County and Tomas Justino Mercado-Mendoza, age 26, a native and citizen of El Salvador, found in York County. The three came to the attention of authorities after eluding examination or inspection by immigration officers.
The investigations were conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement and are being prosecuted by Special Assistant United States Attorney Alice Song Hartye.
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 six months’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Tax Preparer Sentenced to More Than Five Years for Identity Theft and Tax FraudRead the Press Release
BOSTON - A Milford woman, and former tax preparer, was sentenced today to 61 months in prison for filing hundreds of false income tax returns for her clients and identity theft.
Rosa Ivette Colon, 44, was sentenced by District Judge Nathaniel M. Gorton to 61 months in prison, to be followed by three years of supervised release, and ordered to pay $400,000 in restitution to the Internal Revenue Service. In August 2012, Colon pleaded guilty to a 32-count indictment charging her with aggravated identity theft, filing false claims with the Internal Revenue Service, and forging endorsements on United States Treasury checks.
Colon operated a business called X-Press Taxes in Somerville, Mass. During the tax years 2004 through 2010, Colon prepared hundreds of false income tax returns for her clients. On numerous occasions, when preparing income tax returns for clients, Colon prepared two different versions of the return. Colon gave one version of the return to the client, but filed another version seeking a larger refund with the IRS, and kept the additional fraudulent amount for herself. In addition, Colon submitted false personal income tax returns to the IRS on her own behalf. Colon claimed fraudulent refunds by attaching bogus W-2 forms claiming nonexistent wages and withholdings.
Additionally, Colon unlawfully used the identities of three individuals in connection with her fraudulent tax refund scheme. In two instances, she filed tax returns in individuals’ names without their knowledge, and in one instance, she claimed a client’s two-year old child as a dependent on another client’s tax return, charging $1,000 for this service.
“Filing false tax returns and taking advantage of innocent taxpayers is a serious crime,” said United States Attorney Carmen M. Ortiz. “It is especially troubling when such fraud is committed by professionals who were trusted by their clients to submit accurate returns to the IRS. The U.S. Attorney’s Office will continue to investigate tax fraud and hold perpetrators accountable.”
“The Justice Department is committed to stopping return preparers who violate the trust of ordinary taxpayers, and to prosecute them for their tax crimes,” said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division.
“IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority," stated William P. Offord, Special Agent in Charge of the Boston Field Office. “Stealing identities and filing fraudulent tax returns is a serious crime that hurts innocent taxpayers. This sentencing should serve as a strong warning to those considering similar conduct.”
“Cooperation between law enforcement has allowed us to focus our resources and respond quickly to uncover criminal activity such as this type of financial fraud,” said Steven D. Ricciardi, Special Agent in Charge of the U.S. Secret Service Boston Field Office.
U.S. Attorney Ortiz, Assistant Attorney General Keneally, SAC Offord, and SAC Ricciardi, made the announcement today. The case was prosecuted by Trial Attorney Sean R. Delaney of the Tax Division, who is on detail to the U.S. Attorney’s Office.
Tallahassee Man Indicted for Tax FraudRead the Press Release
TALLAHASSEE, FLORIDA– Kraig Antonio Davis, 23, of Tallahassee, Florida,was arraigned in federal court today on charges of filing false tax claims, aggravated identity theft, and mail fraud. The indictment was announced today by Pamela C. Marsh, U.S. Attorney for the Northern District of Florida.
The five-count indictment alleges that between January and July 2011, Davis filed false claims for federal tax refunds using personal identifying information stolen from taxpayers. Davis is alleged to have used the stolen personal identifying information to submit applications for prepaid debit cards to be used to deposit the fraudulently obtained refunds.
Davis is scheduled for trial on April 1, 2013 before United States District Judge Robert L. Hinkle.
If convicted, Davis faces a maximum of ten years in prison on each count of mail fraud, up to five years in prison for filing false claims, and a mandatory term of two years’ imprisonment for aggravated identity theft. The mandatory two-year sentence must be served consecutively to any other sentence that may be imposed in the case.
U.S. Attorney Marsh praised the work of the Leon County Sheriff’s Office, U.S. Postal Inspection Service, and the Internal Revenue Service — Criminal Investigations, whose joint investigation led to the indictment in the case.
- The case is being prosecuted as part of a Department of Justice initiative to fight stolen identity refund fraud (SIRF). In September 2012, the Department issued Tax Division Directive 144, which sets forth expedited Department review procedures for SIRF cases, enabling law enforcement to respond quickly and effectively to the grave challenges presented in SIRF cases and to prevent the victimization of innocent taxpayers whose identities are stolen by fraudsters.
The case is being prosecuted by Assistant U.S. Attorney Winifred Acosta NeSmith.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
State of Alabama Employee Indicted for Providing Stolen Identies to A Million Dollar Identity Theft SchemeRead the Press Release
Montgomery, Alabama - A federal grand jury returned an indictment charging Lea’Tice Phillips for conspiring to file false tax returns using stolen identities, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. The thirty-seven count indictment charges Phillips with conspiracy to file false claims, wire fraud, computer fraud, and aggravated identity theft.
According to the court documents, Lea’Tice Phillips worked for an Alabama State agency and had access to state databases which contained means of identification of individuals. Between October 2009 and April 2012, Lea’Tice Phillips conspired with Antoinette Djonret and others to file false tax returns using stolen identities. On multiple occasions, Phillips accessed a state database to obtain means of identification. Phillips used her state email to send means of identification to Djonret. Djonret and others used those means of identification to file false tax returns. Djonret and her co-conspirators filed most of the tax returns from her residence in Montgomery, Ala. Djonret and her co-conspirators used an elaborate network of individuals to launder the tax refunds. They recruited individuals to purchase prepaid debit cards and to provide the cards to Djonret and her co-conspirators. The fraudulent tax refunds were directed to the prepaid debit cards. Djonret and her co-conspirators would then use the prepaid debit cards to obtain the proceeds. Some of the prepaid debit cards were in the name of Lea’Tice Phillips. In total, Djonret filed over 1,000 false tax returns that claimed over $1.7 million in fraudulent tax refunds.
On August 9, 2012, a federal grand jury in Montgomery, Ala., returned a superseding indictment charging Antoinette Djonret, Angelique Djonret, Tabitha Stinson, Melba Wilson, Chantresa Hayes, and Corey Means for their roles in the same conspiracy.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Phillips faces 10 years imprisonment for the conspiracy to file false claims, 20 years for each wire fraud count, 10 years imprisonment for each computer fraud count, and a mandatory 2-year sentence for the aggravated identity theft counts. She is also subject to fines, mandatory restitution, and forfeiture.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant United States Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Southeast and Southcentral Residences charged with illegally transporting, possessing and selling marine mammalsRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that two Southeast Alaska residents, Raymond P. Chatham, 65, of Edna Bay, Alaska, and Joshua Wodyga, 31, of Ketchikan; Alaska, and two Southcentral Alaska residents, John K. Boone, 55, of Valdez, Alaska, and David K. Johnson, 53, of Anchorage, Alaska, were charged with crimes under the Marine Mammal Protection Act.
Raymond Chatham was charged with illegally transporting 87 dead sea otters and illegal possession of marine mammal parts; in this case, 14 sea otter skulls arising from activities in 2008. Joshua Wodyga, was also charged with one count of illegally selling a sea otter hide. In other filings, John K. Boone was charged with illegally selling two sea otter hides, while David K. Johnson was charged with one illegal sale of a sea otter hide and one count of illegally selling an unhandicrafted walrus tusk. These charges also arose from activities undertaken in 2008.
The charges arose from Operation Enhydra, an investigation conducted by the U.S. Fish and Wildlife Service into the illegal selling of marine mammal parts. Since the investigation ended, 5 individuals have pled guilty and have been sentenced for the illegal take and sale of sea otters, sea otter parts, Steller’s Sea Lion parts, and spotted seal skin parts being sold for commercial gain.
The United States Fish and Wildlife Service, Office of Law Enforcement (USFWS-OLE) led the investigation that led to the prosecution of these individuals and the investigation benefitted significantly from the support of Alaska Wildlife Troopers, NOAA Fisheries’ Office of Law Enforcement, U. S. Forest Service, Immigration and Customs Enforcement, U.S. Marshals Service, the State of Alaska Attorney General’s Office, the Alaska Bureau of Alcohol and Drug Enforcement, and the U. S. Attorney’s Office.
Scottsdale Man Sentenced for Stealing Cacti from Public LandsRead the Press Release
PHOENIX – On Jan. 28, 2013, Kenneth Brian Cobb, 46, of Scottsdale, Ariz., was sentenced by U.S. District Judge Roslyn O. Silver to five years supervised probation with eight months of weekend incarceration and was ordered to pay $32,000 in restitution. Cobb pleaded guilty on Sept. 10, 2012, to theft of government property and a violation of the Endangered Species Act.
“The saguaro cactus is a symbol of the Sonoran desert and Arizona. Saguaros are protected by state and federal law to avoid their becoming threatened by the very actions of people like the defendant.” stated U.S. Attorney John Leonardo. “The defendant stole these precious resources from federal lands and sold them for profit. This prosecution demonstrates that such activity will not be tolerated.”
“Our protected natural resources are so important to our landscapes and so well-loved by our citizens,” said Nick Chavez, the U.S. Fish & Wildlife Service’s (Service) Southwest Region Special Agent in Charge. “We take violations of the Endangered Species Act very seriously”
Cobb admitted that between Jan. 1, 2010, and Feb. 28, 2010, he took eight saguaro cacti from federal land managed by the U.S. Department of the Interior, Bureau of Land Management, near Wickenburg. He later sold the cacti for approximately $2,000 each. In addition, on Jan. 21, 2011, Cobb exported two saguaro cacti from the United States to Austria without a valid export permit.
The investigation in this case was conducted by the U.S. Department of the Interior, Bureau of Land Management and Fish and Wildlife Service. The prosecution is being handled by Jennifer Levinson, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-01594-PHX-ROS
RELEASE NUMBER: 2013-011_CobbFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Scotland County Residents SentencedRead the Press Release
Defendants Face 57 to 108 Months in Federal PrisonGREENSBORO, N.C. – Ripley Rand, United States Attorney for the Middle District of North Carolina, announced the results in three recent federal prosecutions involving offenders from Scotland County, North Carolina.
On December 13, 2012, United States District Judge Thomas D. Schroeder sentenced MICHAEL WAYNE HILL, 54, of Laurinburg to 63 months in prison and three years of supervised release. Hill pled guilty on September 5, 2012 to both counts of a federal indictment charging him with possessing crack cocaine with the intent to distribute it and possession of a firearm by a convicted felon. Information from Hill’s guilty plea and sentencing hearings reflected that on June 11, 2011, officers with the Scotland County Sheriff’s Office executed a search warrant at Hill’s apartment in Laurinburg as the result of an undercover purchase of drugs there. That search yielded 7 grams of crack cocaine, individually wrapped in 15 plastic baggies, and a loaded .32 caliber S&W revolver. Hill illegally possessed the revolver after previously being convicted of felonies in 2006.
On December 14, 2012, Judge Schroeder sentenced DEQUAN FITZGERALD HENDERSON, age 25, of Laurinburg to 57 months in federal prison and three years of supervised release. Henderson pled guilty on September 5, 2012 to possessing the twelve rounds of ammunition after having been convicted of a felony. Henderson had prior felony convictions from 2004 and 2009.
On December 13, 2012, Judge Schroeder also sentenced TITUS TYRONE REDDICK, age 32, of Laurinburg to 105 months imprisonment and three years of supervised release. Information from Reddick’s September 5, 2012 guilty plea and his December 13, 2012 sentencing indicated that on August 26, 2011 Reddick possessed a .380 caliber semiautomatic pistol. Reddick had a prior felony conviction from 2004.
U.S. Attorney Rand commended the efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, as well as officers with the Laurinburg Police Department and Scotland County Sheriff’s Office. “Our office places top priority on combating gun and violent crime, and our success in these cases is a direct result of our close partnerships with federal, state, and local law enforcement,” Rand stated. “We will continue to work closely with the Laurinburg Police Department, the Scotland County Sheriff’s Department, the office of District Attorney Kristy Newton, and other federal, state, and local law enforcement to prosecute felons, domestic violence offenders, and others who possess guns and ammunition illegally and to make our communities safer for all.”
Laurinburg Interim Police Chief Kimothy Monroe added, “Convicted felons in Laurinburg are on notice that this office is working hard with the U.S. Attorney’s Office and the Scotland County District Attorney’s office to prevent violent crimes, especially those committed by convicted felons with guns. We plan to keep in communication with both offices to ensure that gun cases have the highest priority.”
Scotland County Sheriff Shep Jones noted, “We look forward to working with federal authorities to make sure that federal prosecutors have what they need to pursue federal criminal charges for violent crimes committed in Scotland County. Guns in the hands of felons and other prohibited persons are unacceptable.”
Roanoke Man Sentenced on Fraud ChargesRead the Press Release
LYNCHBURG, VIRGINIA -- A former independent financial advisor who bilked his clients out of nearly $1 million dollars with the promise of high investment returns, was sentenced today in the United States District Court for the Western District of Virginia in Lynchburg on fraud charges.
In October, Michael D. Leamnson, 56, of Roanoke, Va., waived his right to be indicted and pled guilty to a two-count Information charging him with one count of wire fraud and one count of mail fraud. This morning in District Court, Leamnson was sentenced to 40 months in Federal prison.
“In perpetrating his long-running Ponzi scheme, Mr. Leamnson stole money from his elderly clients and deprived many of their life savings,” United States Attorney Timothy J. Heaphy said today. “Leamnson falsely promised high investment returns, then used client funds for his personal benefit. This case shows our continuing commitment to prosecute investor fraud, particularly when such fraud targets vulnerable victims like our seniors. We will also continue to do what we can to warn our communities about fraud and encourage due diligence when evaluating investment opportunities.”
Leamnson previously admitted that he recruited investors for his company, Capital Creation. The defendant promised these “investors,” many of whom were senior citizens, that he would invest their money in safe and accessible investments. Leamnson told investors they could access their principle “on demand,” plus interest.However, Leamnson admitted that instead of using funds for safe investments, he instead simply deposited investor money into a general checking account which he used for personal expenses and outside business interests, including a small concrete company and a school fund-raising business. The defendant also used investors funds to cover “interest” payments owed to existing customers. All told, Leamnson defrauded his investors out of nearly $1 million.
The investigation of the case was conducted by the United States Secrete Service, the Internal Revenue Service Criminal Investigations and the Virginia State Police. Assistant United States Attorneys Thomas Cullen and Daniel Bubar will prosecute the case for the United States.
Richland County Woman Sentenced on Methamphetamine Related ChargesRead the Press Release
Christine L. Hagen, 28, of Olney, Illinois, was sentenced in federal district court to federal prison on methamphetamine-related charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. Hagen was sentenced to 115 months in prison, to be followed by six years supervised release, and fined $200.
Hagen had previously pleaded guilty to a two count federal indictment. Count 1 charged that from November 2011, until on or about April 14, 2012, in Richland County, Hagen conspired with others known and unknown to the grand jury to manufacture methamphetamine. Count 2 charged that from January 2011, to on or about April 14, 2012, in Richland County, Hagen possessed pseudoephedrine, knowing and having reasonable cause to believe that the pseudoephedrine would be used to manufacture methamphetamine.
The investigation in this case was conducted by the Richland County Sheriff’s Office.
The case is being prosecuted by Assistant United States Attorney George A. Norwood.
Real Estate Developer sentenced to three years for making false statementsRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced in federal court in Anchorage for twelve counts of false statements to a credit union.
Lee E. Baker, Jr., 57, from Anchorage, Alaska, was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline, to 36 months in prison.
According to Assistant U.S. Attorney Retta Randall, who prosecuted the case, Baker made false statements to Denali Alaskan Federal Credit Union (DAFCU) while drawing down the proceeds of a $9.2 million construction loan obtained for a proposed 85 unit apartment project, “Bryn Mawr,” located on Northern Lights Boulevard in Anchorage. Baker, as President of Discovery Construction, Inc., submitted 12 draw requests certifying each time that certain work had been completed on the Bryn Mawr project, when actually, very little work had been done and the total amount Baker verified as completed was false. The Bryn Mawr project was never completed. As a result of his false statements, approximately $4.3 million was disbursed to Baker by DAFCU before he defaulted on the loan.
Judge Beistline, after imposing sentence, stated, “Ultimately the success of the banking industry and the construction industry depends on integrity.” Judge Beistline went on to acknowledge that the construction industry in Alaska faces challenges, but insisted that, “When facing challenges, the highroad must be taken.” He further indicated that fundamental principles of honesty and integrity are necessary to deal with problems before others get hurt and that the community cannot tolerate this kind of deception. Giving Discovery Construction credit for work completed on the Byrn Mawr project, Baker was ordered to pay $3 million in restitution.
United States Attorney Karen Loeffler noted, “Financial crimes such as those committed by Baker create significant and lasting harms on the community as well as the businesses affected. The Alaska federal law enforcement community is dedicated to working together to investigate and prosecute these serious crimes.”
FBI Special Agent in Charge, Mary Rook, stated, “The FBI will continue to work with our law enforcement partners to address significant financial crimes which impact a wide range of individuals, businesses, and industries. As is frequently the case, the impact of this crime was more widespread than just those immediately identified as victims, as the losses sustained by Denali Alaskan Federal Credit Union were also felt by its members.”Ms. Loeffler commends the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division for the investigation of this case.
Ranch Owner in Young County Admits 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, appeared in federal court in Wichita Falls, Texas, this morning and pleaded guilty, before U.S. District Judge Reed C. O’Connor, to an Indictment charging one count of destruction of an aircraft. Riley, who will remain on bond, faces a maximum penalty of 20 years in federal prison and a $250,000 fine. Sentencing is set for May 21, 2013, before Judge O’Connor. 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 is being investigated by the Texas Rangers and the Texas Parks and Wildlife Department. Assistant U.S. Attorney Katherine Miller is in charge of the prosecution.
Prior Felon from Las Cruces Sentenced to Thirty Months in Prison for Unlawful Possession of FirearmRead the Press Release
ALBUQUERQUE – Yesterday afternoon, Alfonso Levya, 34, of Las Cruces, was sentenced to 30 months in prison followed by three years of supervised release for being a felon in possession of a firearm and ammunition. The sentence was announced by U.S. Attorney Kenneth J. Gonzales and Thomas G. Atteberry, Special Agent in Charge of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Levya was arrested on a criminal complaint in Sept. 2011, and subsequently was indicted in Jan. 2012, and charged with unlawful possession of a firearm and ammunition. According to the indictment, Levya unlawfully possessed a firearm and ammunition in Dona Ana County, N.M., on April 7, 2010. At the time, Levya was prohibited from possessing firearms or ammunition because he previously had been convicted of a marijuana importation charge in the United States District Court for the Western District of Texas.
Levya pled guilty to the indictment on May 7, 2012, under a plea agreement that required Levya to forfeit the firearm and ammunition that were in his possession on April 7, 2010.
ATF Special Agent in Charge Atteberry stated, “Today’s sentencing serves as an example that law enforcement in the state of New Mexico will not tolerate the criminal possession of firearms by prohibited individuals. I would like to recognize the efforts of our law enforcement partners in removing another potential threat from our community.”
The case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Las Cruces/Dona Ana County Metro Narcotics Unit, the New Mexico State Police Narcotics Unit and the Las Cruces Police Department Targeting Neighborhoods Threats (TNT) Unit, and was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Prior Felon from Artesia, N.M., Sentenced to 30 Months in Prison for Unlawful Possession of FirearmsRead the Press Release
ALBUQUERQUE – Earlier today a federal judge in Las Cruces, N.M., sentenced Adrian Gutierrez, 33, of Artesia, N.M., to 30 months in prison followed by three years of supervised release for being a felon in possession of firearms. The sentence was announced by U.S. Attorney Kenneth J. Gonzales and Thomas G. Atteberry, Special Agent in Charge of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Gutierrez was arrested on June 29, 2012, on a criminal complaint, and has been in federal custody since that time. Gutierrez pled guilty to an Information on Aug. 23, 2012, that charged him with unlawfully possessing three firearms on March 23, 2012, in Eddy County, N.M. At the time, Gutierrez was prohibited from possessing firearms or ammunition because he previously had been convicted of a marijuana trafficking felony in the Fifth Judicial District Court for the State of New Mexico.
“This case serve as a shining example once again of the collaborative relationship between federal and local law enforcement,” stated ATF Special Agent in Charge Atteberry.
The case was investigated by the Roswell office of the Bureau of Alcohol Tobacco, Explosives and Firearms, the Pecos Valley Drug Task Force and the Carlsbad Police Department, and was prosecuted by Special Assistant U.S. Attorney Donald F. Moore, Jr.
Prior Felon from Albuquerque Sentenced to Eight Years in Prison for Possession of Stolen FirearmRead the Press Release
ALBUQUERQUE – Charles Brown, 61, of Albuquerque, N.M., was sentenced this morning to eight years in prison followed by three years of supervised release for possessing a stolen firearm and ammunition. The sentence was announced by U.S. Attorney Kenneth J. Gonzales and Thomas G. Atteberry, Special Agent in Charge of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Brown was indicted in Oct. 2011, and was charged with two counts of the unlawful possession of a firearm and ammunition on Dec. 20, 2010 and on June 14, 2011 in Bernalillo County, N.M. On both dates, Brown was prohibited from possessing firearms or ammunition because he previously had been convicted of the following felony offenses in Second Judicial District Court for the State of New Mexico: (1) robbery in May 1972; (2) residential burglary in June 1978; (3) residential burglary and larceny in Feb. 1978; (4) receiving or transferring a stolen motor vehicle in Dec. 1980; (5) receiving stolen property in Dec. 1980; (6) receiving stolen property in Jan. 1990; (7) heroin trafficking in Dec. 1995. He also was convicted of (8) burglary of a dwelling and conspiracy to commit burglary of a dwelling in Jan. 1996, in the Thirteenth Judicial District Court for the State of New Mexico; and (9) endangerment in Aug. 2003, in the Arizona Superior Court, Pima County.
Brown was arrested on Oct. 13, 2011, and has been in federal custody since that time. On Aug. 1, 2012, Brown pled guilty to a criminal information charging him with possession of a stolen firearm on June 14, 2011. The plea agreement required Brown to forfeit the firearms and ammunition that were in his possession on Dec. 20, 2010 and June 14 2011.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Albuquerque Police Department, and was prosecuted by Assistant U.S. Attorney Louis E. Valencia.
Philadelphia Pill Mill Doctor Sentenced to Seven Years in PrisonRead the Press Release
PHILADELPHIA - Richard Minicozzi, M.D., 79, of Philadelphia, was sentenced today to seven years in prison for conspiracy to distribute controlled substances and 17 counts of distribution of controlled substances for running a pill mill out of his office located at 731 Morris Street in Philadelphia. Minicozzi was distributing hydrocodone (“Vicodin”), and alprazolam (“Xanax”) and was selling prescriptions for oxycodone. Minicozzi ordered the drugs from a supplier and had them shipped to his office in small boxes which he then sold to cash-paying customers who had no legitimate need for the drugs and without a physical examination. Minicozzi and his office assistant, Joan Israel, who previously pleaded guilty, created phony medical records for his drug-buying customers.
In addition to the prison term, U.S. District Court Judge J. Curtis Joyner also ordered three years supervised release, a $40,000 fine, and a $1,800 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement
Administration, and the Philadelphia Police Department and was prosecuted by Assistant United
States Attorney Mary Kay Costello.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Pennsylvania Man Indicted in Oregon for Scheme to Defraud Four Dioceses of the Catholic ChurchRead the Press Release
Portland, Ore. - A federal grand jury in Portland has returned an indictment against Shamont Sapp, 49, charging him with mail fraud in a five-year scheme involving false claims of child sex abuse by Catholic priests in four dioceses. Sapp, originally from Harrisburg, Pennsylvania, is alleged to have used "legal mail" while an inmate of the U.S. Bureau of Prisons to file, pursue and litigate the false claims in federal courts from 2005 through 2010. According to the indictment, the false claims caused the dioceses, their representatives, several courts and other entities to expend money, time and other resources to investigate and resolve the claims, which were ultimately denied or dismissed.
The indictment states that the four fraudulent claims sought money damages, and each alleged similar sexual assaults by specified priests when Sapp was a minor in 1978-79. It charges that Sapp had not been sexually assaulted by the priests and, indeed, had not even been present in the dioceses as alleged in his claims.
Fraudulent claims listed in the indictment involved the dioceses of Tucson, Arizona; Covington, Kentucky, and Spokane, Washington, as well as the Archdiocese of Portland, Oregon. In the Covington and Spokane cases, the indictment notes that Sapp falsely alleged sexual assaults by priests in two different cities on the same day, August 18, 1978.
Sapp initially will appear in U.S. District Court in Harrisburg, Pennsylvania, where the government will seek his removal to Portland to face trial on the indictment.
An indictment is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty. If convicted of mail fraud, Sapp faces a maximum sentence of 20 years in prison and a fine of $250,000, as well as mandatory restitution for all damages incurred.
The case has been investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant U. S. Attorney Stephen F. Peifer.
Nine Residents of Kingsport and Gate City Plead Guilty to Drug Distribution ConspiracyRead the Press Release
ABINGDON, VIRGINIA -- United States Attorney Timothy J. Heaphy announced today that nine residents of Virginia and Tennessee entered pleas of guilty yesterday in the United States District Court for the Western District of Virginia in Abingdon to charges involving drug distribution. These charges resulted from a cooperative investigation by the Scott County, Virginia Sheriff’s Office, Sullivan County, Tennessee Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the United States Marshals Service.
Yesterday in District Court, Tabatha Drake, 22, Blountville Tenn., Mickey Fields, 26, Gate City, Va., Joshua Holmes, 21, Kingsport, Tenn., Thomas, Laney, 25, Kingsport, Tenn., Jessica Light, 25, Gate City, Va., Connie Puckett, 43, Kingsport, Tenn., Jacob Spivey, 25, Gate City, Va., Lovella Sweeney, 30, Kingsport, Tenn., and Donald Lee Whitefeather, 59, Gate City, Va., entered pleas of guilty to one count of conspiracy to distribute Oxycodone.
“The success of this case demonstrates our commitment to work together across state lines to put criminal drug organizations out of business,” United States Attorney Timothy J. Heaphy said today. “Prescription drug abuse is a serious health problem in Southwest Virginia and this office will continue to prosecute those who profit from the addiction of others. We will also continue to support education and treatment programs and pursue a holistic response to this persistent problem.”
Each defendant faces a potential maximum sentence of 20 years imprisonment and a fine of $1,000,000. Spivey also entered a plea of guilty to one count of distributing Suboxone within 1,000 feet of a school which carries a potential punishment of up to twenty years imprisonment, a $1,000,000 fine and a mandatory minimum term of imprisonment of one year.
According to evidence presented at the guilty plea hearings by Assistant United States Attorney Zachary Lee, the individuals who pleaded guilty were all involved in the distribution of controlled substances in Scott County, Virginia and Sullivan County, Tennessee from approximately 2007-2011. The Scott County Sheriff’s Office, Sullivan County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives determined that Drake, Spivey, Whitefeather, Fields, and Light distributed large quantities of oxycodone and suboxone. It was also determined that large quantities of oxycodone were being supplied by Connie Puckett, Lovella Sweeney, and Thomas Laney to other members of the conspiracy for further distribution in Scott County, Virginia and Sullivan County, Tennessee.
The investigation of this case was conducted by the Scott County, Virginia Sheriff’s Office, Sullivan County, Tennessee Sheriff’s Office, Sullivan County, Tennessee District Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the United States Marshals Service. Assistant United States Attorney Zachary T. Lee of the United States Attorney’s Office in Abingdon is prosecuting the case.New York Man Sentenced for Cape Cod Property Fraud SchemeRead the Press Release
BOSTON - A New York man was sentenced today in connection with a scheme to defraud a Massachusetts man of his Hyannis waterfront property.
Michael Howard Clott, aka Michael Howard, 60, was sentenced by U.S. District Judge Rya W. Zobel to 152 months, followed by 36 months of supervised release, forfeiture of $1,269,168 and ordered to pay $1,425 in restitution. In November 2012, Clott pleaded guilty to three counts of mail fraud and three counts of wire fraud.
From December 2009 through April 2010, Clott spent several months on Cape Cod engaged in a scheme to defraud a Massachusetts man of a property he valued at more than $2.8 million. During this period Clott was a fugitive from a federal criminal case against him in New York. Clott used the alias “Michael Howard,” and represented to others that he was an attorney and financial executive who specialized in purchasing, repairing and marketing bank-owned real estate when, in fact, Clott was none of those things. Clott, however, persuaded a local real estate broker to sell a client’s property for half the asking price, then give the sale proceeds to Clott who would use his purported financial expertise to generate an after-tax benefit for the client equivalent to the client’s asking price. Instead of using the proceeds for the client’s benefit, Clott manipulated others to unwittingly assist in negotiating the proceeds check to enable him to deposit the funds in an account for Clott’s personal benefit. However, Clott’s scheme was discovered and the funds were secured before Clott could further disburse or conceal them.During the past 30 years, Clott has either been engaged in significant fraud schemes, or been serving time in prison for those schemes. Most recently, Clott was sentenced by the Southern District of New York to 259 months in prison which he will serve concurrent to his sentence in the District of Massachusetts.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation Boston Field Division, made the announcement today.
The case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorneys Mark J. Balthazard and Veronica Lei of Ortiz's Economic Crimes Unit and Asset Forfeiture Unit, respectively.
New Martinsville Resident Sentenced for Being A Convicted Felon in Possession of AmmunitionRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA — A 38 year-old New Martinsville, West Virginia, resident was sentenced on January 28, 2013, in United States District Court in Wheeling by Judge Frederick P. Stamp, Jr.
United States Attorney William J. Ihlenfeld, II, announced that: PAUL JASON BILLITER a/k/a “P.J.” was sentenced to 51 months imprisonment to be followed by three years of supervised release. BILLITER was convicted on October 24, 2012, following a two- day jury trial, of Possession of Ammunition on November 23, 2011, in New Martinsville after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year. BILLITER was convicted of the offenses of Burglary and Grand Larceny in the Circuit Court of Tyler County, West Virginia.
Trial evidence indicated that BILLITER illegally possessed 102 rounds of ammunition at his residence in New Martinsville.
BILLITER, who is free on bond, will self-report to the designated Federal institution on February 28, 2013.
The case was prosecuted by Assistant United States Attorney David J. Perri and investigated by the New Martinsville Police Department.
New Jersey Businessman Indicted on Tax ChargesRead the Press Release
PHILADELPHIA - Mark Olkowski, 62, of North Wildwood, NJ, a business partner in K & O Sports, was indicted today on tax charges, announced United States Attorney Zane David Memeger. K&O sports, on Moyamensing Avenue, is a South Philadelphia distributor of t-shirts and other clothing items for labor unions, municipalities, and political candidates.
According to the indictment, Olkowski under-reported, by approximately $250,000, K & O’s gross partnership receipts to the Internal Revenue Service on K & O’s partnership tax returns from 2006 through 2009. Olkowski also allegedly failed to report all of his "flow through" partnership income on his personal income tax returns during that same time period. It is further alleged that Olkowski failed to report as income the value of personal expenses he paid with corporate funds, and failed to report as income significant sums of cash received by K & O but which he retained and did not deposit to K & O business accounts.
Olkowski is charged with filing four false personal income tax returns and four false partnership tax returns for his business during 2006 through 2009. Olkowski is also charged with 15 counts of wire fraud concerning approximately $25,000 in allegedly improper unemployment compensation benefits he received while he held an ownership interest in K & O Sports and was receiving income from K & O.If convicted, Olkowski faces a maximum possible sentence of over 100 years in prison, five years supervised release, a $5.75 million fine, and a $2,300 assessment.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Paul L. Gray and John M. Gallagher.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525New Haven Man Sentenced to 70 Months in Federal Prison for Distributing HeroinRead the Press Release
January 29, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that QUIYON REED, also known as “Gutter,” 29, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 70 months of imprisonment, followed by four years of supervised release, for distributing heroin.
REED is one of 108 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants and seizures of narcotics and firearms.
According to court documents and statements made in court, in the fall of 2011, REED assisted a co-defendant’s large-scale drug trafficking operation. REED packaged heroin for street sale and served his co-defendant’s drug customers. The investigation also revealed that REED had access to firearms stored at one of his co-defendant’s residences.
REED has been detained since his arrest on May 17, 2012. On October 25, 2012, he pleaded guilty to one count of conspiracy to distribute 100 grams or more of heroin.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided invaluable assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
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Tom Carson
(203) 821-3722 [email protected]Montgomery Woman Indicted for Stolen Identity Refund FraudRead the Press Release
Montgomery, Alabama - A federal grand jury in Montgomery, Ala., returned an indictment charging LaQuanta Clayton with aggravated identity theft and theft of government money, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama
According to the indictment, Clayton used stolen identity information to facilitate the theft of federal tax refunds. As alleged, Clayton used the stolen identity information to open bank accounts at the bank where she was working and then stole federal tax refunds that were deposited into the bank accounts.
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Clayton faces a maximum potential sentence of 10 years in prison for each of the 15 theft of government money counts and a mandatory two-year sentence for the aggravated identity theft counts. She is also subject to fines and mandatory restitution if convicted.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles M. Edgar Jr. and Michael Boteler of the Justice Department’s Tax Division are prosecuting the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Montgomery Woman Indicted for Million Dollar Identity Theft SchemeRead the Press Release
Montgomery, Alabama - A federal grand jury returned an indictment charging Scottie Alice Johnson of Montgomery with a conspiracy to commit theft of public funds and to defraud the IRS, announced George L. Beck, U.S. Attorney for the Middle District of Alabama.
According to the indictment, between 2006 and 2012, Scottie Johnson conspired with others to defraud the IRS and commit theft of public funds. Co-conspirators filed false federal income tax returns with stolen identities and had refunds directly deposited into several bank accounts, including bank accounts in the name of Scottie Alice Johnson and another individual. The bank accounts associated with the conspiracy received at least $1.3 million in false tax refunds.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Johnson faces 5 years imprisonment for the conspiracy count and 10 years imprisonment for each theft of public funds count. Johnson is also subject to fines, mandatory restitution, and forfeiture.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial attorneys Jason H. Poole and Michael Boteler of the Justice Department's Tax Division and Assistant United States Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Monterio Wiggins Pleads Guilty to Violations of the Racketeer Influenced Corrupt Organization Act, the Federal Gun Control and Controlled Substances ActsRead the Press Release
MONTERIO WIGGINS, age 21, of Gretna, Louisiana pled guilty in federal court yesterday before U.S. District Judge Lance M. Africk to Violations of the Racketeer Influenced Corrupt Organization Act, the Federal Gun Control and Controlled Substances Acts, announced U.S. Attorney Dana J. Boente.
WIGGINS pled guilty to Count 1: Conspiracy to violate the Racketeer Influence and Corrupt Organizations Act (“RICO), in violation of Title 18, United States Code, Section 1962(d); Count 2: Conspiracy to Distribute and Possess with Intent to Distribute over 280 grams of Cocaine Base (“crack”), in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 846; and Count 5: Conspiracy to Possess Firearms, in violation of Title 18, United States Code, Section 924(o). As part of the RICO Conspiracy, WIGGINGS admitted that both he and other Murder Squad members participated in the murder Mr. Reginald Francois on April 1, 2010. Specifically, both Dane Carson and WIGGINS shot Mr. Reginald Francois. WIGGINS pled guilty pursuant to an 11(c)(1)(C) plea agreement where he will be sentenced to a term of imprisonment of 360 months. The Court may accept or reject the plea agreement.
This case arose out of a joint investigation by ATF, FBI, and the Jefferson Parish Sheriff’s Office. This investigation targeted an area which exhibited a disproportionate amount of violent crimes and narcotics trafficking. During the course of the investigation, specific individuals were identified as the main perpetrators of many of the violent acts and much of the narcotics distribution. Federal and local law enforcement officers interviewed witnesses, confidential informants, as well as state defendants, relative to the targeted individuals. It was revealed that a group of individuals operated in various areas of Harvey Louisiana, specifically the neighborhoods known as Scottsdale and Haydel. This group controlled these areas for their narcotics distribution activities through violence and through threats of violence, to include murder, attempted murder, obstruction and assaults. They were referred to as the Harvey Hustlers and/or Murder Squad.The “Murder Squad, “ or MS, was a faction of the Harvey Hustlers composed primarily of individuals residing in the Harvey, Louisiana area of Jefferson Parish, Louisiana. While they primarily operated on the Westbank of Jefferson Parish, members conducted business in other parts of the Eastern District of Louisiana. The “Harvey Hustlers” also referred to as “HH” originated in the Harvey area in the mid-1980s. Members of the organization “hustled” meaning they distributed illegal narcotics. The original goal of the Harvey Hustlers was to make money from sales of illegal narcotics.
Sentencing for the named defendants is set for May 2, 2013 before United States District Judge Lance M. Africk.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco and Firearms, and the Jefferson Parish Sheriff’s Office. The case is being prosecuted by Assistant United States Attorneys Duane A. Evans and Bill McSherry.
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Mescalero Apache Man Sentenced to 79 Months in Prison for Aggravated Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Earlier today in federal court in Las Cruces, N.M., Terrence Charles Blake, 29, a member and resident of the Mescalero Apache Nation, was sentenced to 79 months in prison for his aggravated sexual abuse conviction. Blake will serve a five-year term of supervised release after he completes his prison sentence, and will be required to register as a sex offender. Blake’s sentence was announced by U.S. Attorney Kenneth J. Gonzales and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.
Blake was arrested on August 10, 2011, based on a criminal complaint alleging that he raped a Mescalero Apache woman on May 13, 2011, on the Mescalero Apache Reservation. He has been in federal custody since his arrest. On Nov. 16, 2011, Blake was indicted and charged with aggravated sexual abuse.
According to court records, on May 13, 2011, Blake drove the victim to a secluded field behind the Pena Housing Area on the Mescalero Reservation and sexually assaulted her. Blake pled guilty to the indictment on May 7, 2012, and admitted meeting the victim at the Inn of the Mountain Gods Resort and Casino in Ruidoso, N.M., on May 13, 2011. Blake admitted leaving the resort with the victim and later driving her to the secluded field, where he sexually assaulted her against her will and by use of force.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, Mescalero Agency, and was prosecuted by Assistant U.S. Attorneys Jessica Càrdenas Jarvis and Richard C. Williams of the U.S. Attorney’s Las Cruces Branch Office.
Mercer County Man Pleads Guilty to Illegal Distribution of Prescription PainkillersRead the Press Release
BLUEFIELD, W.Va. – U.S. Attorney Booth Goodwin announced that a Mercer County man pleaded guilty on Jan. 29 in federal court to distribution of hydromorphone. Trusby Hubbard also known as “Red,” 34, of Bluefield, Mercer County, W.Va., admitted that on August 16, 2012, he sold two hydromorphone pills to a person cooperating with law enforcement authorities. Hubbard also admitted that during the illegal transaction, he possessed an additional 15 hydromorphone pills. The illegal pill transaction took place at the defendant’s Bluefield residence.
The defendant also admitted that he was responsible for distributing a total of no more than 17 hydromorphone pills.
Hubbard faces up to 20 years in prison and a $1 million fine when he is sentenced on April 26, 2013 by United States District Senior Judge David A. Faber.
The Southern Regional Drug and Violent Crime Task Force handled the investigation. Assistant United States Attorney John File is in charge of the prosecution.
The case is being brought as part of the Bluefield Pill Initiative. The Bluefield Pill Initiative is a collaborative, multi-agency regional law enforcement effort designed to halt prescription drug trafficking in Mercer, McDowell, and Wyoming Counties. The Bluefield Pill Initiative is led by the Southern Regional Drug and Violent Crime Task Force, which includes the West Virginia State Police Bureau of Criminal Investigation; the Mercer, McDowell and Wyoming County Sheriff’s Departments, and the Bluefield and Princeton Police Departments.
Media AdvisoryRead the Press Release
Montgomery, Alabama - George L. Beck, Jr., United States Attorney for the Middle District of Alabama, Veronica Hyman-Pillot, Internal Revenue Special Agent in Charge, and Clayton Slay, U.S. Secret Service Resident Agent in Charge, will hold a press conference to announce the government’s continued crackdown on identity theft and fraudulent tax preparers. Since January 30, 2013, is the first day of the tax filing season for 2012 taxpayers, it is a perfect time to warn taxpayers about these fraudulent tax preparers and identity theft. Press releases and other handouts will be provided at the conference. The press conference will be held on Wednesday, January 30, 2013, at 1:00 p.m., at the U.S. Attorney’s Office, 131 Clayton Street, Montgomery, Alabama, and the media is invited.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Maryland Man Sentenced to 57-Month Prison Term for Robbing A Man in Northwest Washington-Summertime Attack Took Place in Broad Daylight-Read the Press Release
WASHINGTON – Deandre Swann, 25, of Hyattsville, Md., was sentenced today to four years and nine months in prison for robbing a man in broad daylight last summer in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Swann pled guilty in November 2012 in the Superior Court of the District of Columbia to robbery and destruction of property. He was sentenced by the Honorable Robert I. Richter. Upon completion of his prison term, Swann will be placed on three years of supervised release.
As part of the plea, Swann admitted that on July 28, 2012, at about 1:25 p.m., he and another man approached the victim in the 500 block of T Street NW. Swann tried to grab the victim’s iPhone, then repeatedly struck him. The victim threw the iPhone and was knocked to the ground. Swann’s accomplice picked up the iPhone, and the two fled the scene together.
In addition to the seriousness of the offense itself, the sentence reflected the fact that at the time of the crime, Swann was on probation in the District of Columbia for a 2008 conviction for five counts of distribution of cocaine in a drug-free zone. In that case, he is facing a probation revocation hearing before the Honorable John M. Mott on Feb. 8, 2013.
In announcing the sentence, U.S. Attorney Machen expressed his appreciation to the Metropolitan Police Department, which investigated the case. He also commended the work of Paralegal Specialist Allison Daniels and Assistant U.S. Attorney Stephen Rickard, who prosecuted the matter.
13-032Mark James 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 Billings, on January 29, 2013, before Chief U.S. District Judge Richard F. Cebull, MARK JAMES DENNY, a 33-year-old resident of Hardin, pled guilty to theft from an organization receiving federal funding. Sentencing has been set for May 1, 2013. He is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Carl E. Rostad, the government stated it would have proved at trial the following:
The Crow Tribal Historic Preservation Office (CTHPO) on the Crow Indian Reservation was created in 2005. The CTHPO is a designated office of the Crow Indian Tribe that provides for direct Tribal involvement and leadership in the protection and enhancement of Crow lands and cultural resources. It serves to identify, inventory, and protect culturally, archeologically, and historically important resources both on and off the reservation.
Each year, the CTHPO receives grant funds from the National Park Service, U.S. Department of the Interior. A requirement for any enterprise seeking to do work on the reservation that may disturb tribal lands - utilities, construction, energy exploration, development - is that the business employ the services of a CTHPO employee (archeological technician) to monitor the project to insure that lands of cultural or historic importance are not destroyed. The company is then charged for this monitoring service and payments are made to the Crow Tribe.
The Director of the CTHPO from approximately 2005 until November 15, 2011 is identified here as X.X. During the time X.X. was Director, most of the monitors were his family members. Two other monitors were not hired as Crow Tribe employees but were assigned as project monitors and received payment directly from the companies. DENNY was also an employee of the CTHPO.
Sometime in the summer of 2009, X.X. approached the Vice-Chairman of the Tribe and tried to get the process changed so that the companies could make direct payments to the monitors. When he was told he couldn't do that, he indicated he would take the matter up with the Chairman. The Chairman was never approached and did not provide any approval for X.X.'s request.
Even though his request was denied, X.X. began advising companies that payments would now be made directly to the tribal monitors assigned to the project. At first, in the summer of 2009, few direct payments were arranged. However, in the summer of 2010, the CTHPO staff person who insured that companies were properly billed and that CTHPO payments went to the Tribe left the office, and direct billing - having companies pay monitors personally instead of remitting the fee to the Crow Tribe - became much more prevalent.
From July 2009 to November 2011, a total of over $500,000 in monitoring service payments from the companies doing business on the Crow Reservation were diverted to the personal use and benefit of the employees of the CTHPO and the two non-employees assigned to projects as monitors. X.X. did not serve as a monitor in the field.
In the Summer of 2011 - from June to August - DENNY was assigned as a monitor to the Sarpy Creek project, which was the Westmoreland Resources expansion of the Absaloka Coal Mine in the Powder River Basin. DENNY's assignment was to monitor the progress of the project to insure that no culturally, archeologically, or historically important sites were disturbed.
A Westmoreland sub-contractor, GCM Services, went forward with an extensive excavation of the site with the approval of X.X., who as Director of the CTHPO had assigned several others and DENNY as project monitors. As a result of the approved site plan, a 2,000-year-old bison kill site was unearthed in 2011 with heavy equipment, causing significant, irreparable damage to the site. The largest bison bone bed was estimated to cover almost 3,000 square meters and contained the remains of hundreds, perhaps thousands, of butchered bison remains and prehistoric spear points dating back to the Late Archaic period.
When interviewed, DENNY admitted that he knew that he took direct payments while a tribal employee and that it was wrong to be paid by the Tribe and the companies for the same work. He admitted that the time sheets he submitted to the Tribe and the invoices he submitted to the companies were false and fraudulent because they were inflated and represented demands for payment for hours not worked. According to a GCM Services company representative, "the monitors often did not show up, and, if they did, they often only worked one to three hours."
The United States will seek restitution in the amount of $73,046 - the amount of loss directly attributable DENNY.
I meet regularly with tribal officials on each of Montana's reservations, and at each meeting they ask this office to do more to put an end to corruption and theft in the administration of federal grants and programs. I take - and have taken - their pleas to heart when my office created the Guardians Project with just that mission in mind. The change of plea today represents just one of many, many steps this office will take to respond the concerns of our Indian communities for honesty and integrity in tribal government." Michael W. Cotter, United States Attorney for the District of Montana.
DENNY faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by a team of agents and auditors working with the U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior, the Federal Bureau of Investigation, and the Criminal Investigation Division of the Internal Revenue Service.
Manhattan U.S. Attorney Sues TestQuest, Criminally Charges One Former TestQuest Manager, and Announces Guilty Pleas of Two Former Directors at Princeton Review for Defrauding Federal Government into Paying for Tutoring Services That Were Never ProvidedRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Brian M. Hickey, the Special Agent-in-Charge of the Northeastern Region of the United States Department of Education’s Office of Inspector General (“ED-OIG”), announced today a number of civil and criminal actions relating to false claims for reimbursement submitted by educational testing services companies, TESTQUEST, INC. (“TESTQUEST”) and THE PRINCETON REVIEW, INC. (“PRINCETON REVIEW”) in connection with a federally-funded program that provides tutoring services to public school children. The actions include: (1) the filing of a civil fraud lawsuit earlier today against TESTQUEST and MICHAEL LOGAN, a former Manager at TestQuest, seeking treble damages and civil penalties under the False Claims Act for the fraudulent reimbursement claims submitted by TESTQUEST between 2005 and 2012; (2) the arrest this morning of LOGAN on fraud charges; (3) the guilty pleas of ANA AZOCAR and ZORAYMA AZOCAR, two former Site Managers and then Directors of PRINCETON REVIEW’s New York City Supplemental Educational Services program (“SES”), to fraud charges and the settlement of civil claims filed against them; and (4) the settlement of civil claims filed against ROBERT STEPHEN GREEN, a former Director and Vice President of PRINCETON REVIEW. LOGAN was presented before U.S. Magistrate Judge James C. Francis IV this afternoon. ZORAYMA AZOCAR pled guilty before U.S. District Judge John F. Keenan on January 11, 2013, and ANA AZOCAR pled guilty before U.S. District Judge Jesse M. Furman on January 15, 2013.
The Government reached a settlement in December 2012 with EDUCATION HOLDINGS, INC. which was formerly known as THE PRINCETON REVIEW, INC. for its role in the government billing fraud.
Manhattan U.S. Attorney Preet Bharara said: “Today, we continue our push to clean up corruption in the tutoring of our school kids perpetrated by those who put their pockets before their pupils. In little more than a month since we exposed and resolved a scheme by Princeton Review to fraudulently bill the government for critical tutoring services that could make the difference between a child’s academic success or failure, we are now holding individuals to account – both criminally and civilly – for their roles in that scheme. But today we go even further – charging a second company and one of its principals for allegedly feeding at the trough of government largesse by targeting the same Supplemental Education Services program and manufacturing student beneficiaries of those services out of whole cloth.”
ED-OIG Special Agent-in-Charge Brian M. Hickey said: “The Supplemental Education Services program provides critical resources for children to improve their academic performance. Ana Azocar, Zorayma Azocar, and Robert Stephen Green were trusted to provide those services, but instead they chose to abuse that trust for personal gain, and that is unacceptable. And Michael Logan is alleged to have done the exact same thing. I am proud of the work of our office in holding these individuals accountable for their fraudulent actions and we will continue to track down those who cheat this important program and the students and families that rely on it.”
According to the Criminal Complaint against LOGAN, the Criminal Informations against the AZOCARS, the Civil Complaints against PRINCETON REVIEW and TESTQUEST, and the Settlement with GREEN filed in Manhattan federal court:
The Supplemental Educational Services Program
Each year, the New York City Department of Education (“NYCDOE”) receives funds from the federal government to pay for SES, such as after-school tutoring and other remedial and supplemental academic enrichment services for students attending underperforming public schools. NYCDOE typically enters into contracts with private entities and organizations to provide SES tutoring to students in New York City public schools. Students are eligible to receive SES tutoring if they meet certain criteria, such as attending a school that has been identified as needing improvement or restructuring for at least two years. Private entities contracted by NYCDOE to provide SES tutoring are required to have each student who attends a class sign a standard attendance form. The tutor of each class also is required to sign the form attesting that he or she provided SES tutoring to the students whose signatures appear on the attendance form. As a condition of getting paid for providing tutoring, the private entities are required to certify to the NYCDOE that their attendance records are “true and accurate.”
TESTQUEST
From 2005 through 2012, TESTQUEST contracted with the NYCDOE to provide SES tutoring to students in New York City. It provided individual tutoring to students at their homes and group tutoring at various New York City public schools, including the Monroe Academy of Business and Law/High School of World Cultures (“Monroe”) and the Global Enterprise Academy/Christopher Columbus High School (“Columbus”). TESTQUEST received tens of millions of dollars of federal funding for tutoring during this time period, including more than $2.3 million for purportedly providing tutoring at Monroe and Columbus alone.
MICHAEL LOGAN was an employee of TESTQUEST responsible for managing its SES tutoring program at Monroe and later at Columbus. LOGAN also worked as a long-term substitute teacher and computer technician at Monroe and, at times, coached Monroe’s baseball team. As a result of LOGAN’s conduct, TESTQUEST employees repeatedly submitted to the NYCDOE bills for students who never received any tutoring. LOGAN instructed TESTQUEST employees to forge student signatures on attendance forms and to have students sign attendance forms for tutoring classes they had not in fact attended. On some occasions, LOGAN caused TESTQUEST employees to fraudulently obtain students’ signatures by collecting them from students assembled in the school cafeteria or participating in afterschool activities such as baseball or basketball practice. LOGAN would direct employees to participate in this fraud by saying, for example, “if you can’t find the students, sign them in,” “make them sign or you won’t get paid,” and “I already got paid, this is how you get paid.” Further, when LOGAN learned of the criminal investigation, he coached others to lie. In one recorded conversation, LOGAN encouraged another witness to lie about teaching classes that occurred when the witness and LOGAN were actually coaching after-school sports, saying “…we just gotta stick to we taught the classes.” Through the fraud conducted at LOGAN’s direction, TESTQUEST was paid substantial sums for tutoring that never occurred.
TESTQUEST’s management knew of, deliberately ignored or recklessly disregarded the fraud by LOGAN. For example, during the 2008/2009 academic year, little or no tutoring was taking place at Monroe, and employees collected student signatures on attendance forms in the school cafeteria. During other years, the reported attendance at TESTQUEST's afterschool tutoring at Monroe and Columbus was greater than the number of students actually receiving tutoring. Moreover, TESTQUEST’s management was exposed to clear warning signs of the fraud, including one occasion in 2010 when TESTQUEST’s President saw student signatures on an attendance form and expressly stated that they looked forged.
PRINCETON REVIEW
From 2002 to 2010, PRINCETON REVIEW contracted with the NYCDOE to provide SES tutoring to students in New York City. Between 2006 and 2010, however, Site Managers at PRINCETON REVIEW’s New York City SES division falsified entries on daily student attendance sheets to make it appear that more students had attended the PRINCETON REVIEW’s SES classes than had, in fact, attended. In some cases, Site Managers falsified entire daily student attendance sheets for SES classes that did not, in fact, take place. If a Site Manager failed to report a sufficiently high rate of student attendance at PRINCETON REVIEW’s SES classes, the Site Manager’s Director would threaten to terminate and/or lower the hours and pay of the Site Manager.
ANA AZOCAR and ZORAYMA AZOCAR worked as Site Managers and then as Directors of PRINCETON REVIEW’s New York City SES division, responsible for supervising Site Managers at schools throughout New York City, including in Manhattan and the Bronx. As described in the Informations to which they pled guilty, as well as the civil settlements they entered into, ANA AZOCAR and ZORAYMA AZOCAR not only falsified attendance records on their own, but also pressured and instructed the Site Managers they supervised to commit fraud in this manner. ROBERT STEPHEN GREEN was also a Director at PRINCETON REVIEW and, later, the Vice President in charge of PRINCETON REVIEW’s New York City SES program. As he admitted in the civil settlement he entered into, he gave the Site Managers he supervised a daily quota for student attendance and pressured the Site Managers to meet the quota, including by threatening to fire them or lower their pay if they reported low attendance. He texted or called the Site Managers on a daily basis demanding that they continually report higher attendance and said, for example, “find 15 more students,” “get more students,” and “make it happen, I don’t want any excuses.” GREEN admitted that even after he became Vice President, he was “repeatedly put on notice that Site Managers were in fact falsifying entries on the daily student attendance sheets.” Through the fraud committed at the direction of ANA AZOCAR, ZORAYMA AZOCAR and GREEN, PRINCETON REVIEW billed for and received millions of dollars in federal funds for SES tutoring that it had not provided.
MICHAEL LOGAN, 48 of White Plains, New York, was charged with one count of conspiracy to commit mail and wire fraud and one count of conspiracy to defraud the United States and the U.S. Department of Education, and faces a maximum sentence of 25 years in prison. The charges in the Criminal Complaint against him are merely allegations and he is presumed innocent unless and until proven guilty.
By filing its Civil Complaint, the Government joined a private whistleblower lawsuit that had previously been filed against TESTQUEST under the False Claims Act.
ANA AZOCAR, 36 of New York, New York, and ZORAYMA AZOCAR, 35 of New York, New York, each pled guilty to one count of conspiracy to defraud a federal program and one count of federal program fraud. They both face a maximum sentence of 15 years in prison. ANA AZOCAR will be sentenced by Judge Furman on May 23, 2013, and ZORAYMA AZOCAR will be sentenced by Judge Keenan on June 26, 2013.
Separately, ANA AZOCAR and ZORAYMA AZOCAR settled civil claims filed against them, made admissions concerning their conduct, and agreed to pay $1,043,400 and $1,020,500, respectively, in restitution and forfeiture in satisfaction of the civil claims against them.
ROBERT STEPHEN GREEN also settled civil claims filed against him, made admissions concerning his conduct, and agreed to execute a judgment in favor of the Government in the amount of $3.2 million, and to pay $221,058 in satisfaction of the civil claims against him. The $221,058 represents the maximum of GREEN’s ability to pay a monetary settlement to the Government. In addition, in connection with their civil settlements, ANA AZOCAR, ZORAYMA AZOCAR and GREEN have each agreed not to participate in any procurement or non-procurement transactions with the federal Government for a period of five years.
The Government reached a settlement in December 2012 with EDUCATION HOLDINGS, INC. which was known as THE PRINCETON REVIEW, INC. until May 2012, for PRINCETON REVIEW’s repeated submission of false claims for reimbursement. In the settlement, EDUCATION HOLDINGS admitted, acknowledged, and accepted responsibility for engaging in fraudulent conduct while it was doing business as PRINCETON REVIEW and agreed to pay up to $10 million to the United States in damages and penalties under the False Claims Act.
Mr. Bharara thanked the Office of the ED-OIG for its extraordinary assistance in this case.
The criminal cases are being handled by the Complex Frauds Unit and Assistant U.S. Attorneys Joseph P. Facciponti and Christopher B. Harwood are in charge of the prosecution. The civil cases are being handled by Christopher B. Harwood of the Office’s Civil Frauds Unit.
The Civil Frauds Unit works in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The charges contained in the Criminal Complaint against LOGAN are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. TestQuest, Inc, et al. Complaint
U.S. v. Michael Logan Michael Complaint
U.S. v. Education Holdings1, Inc (Princeton Review) Amended Complaint
U.S. v. Zorayma Azocar Information
U.S. v. Ana Azocar InformationMan Pleads Guilty to Threatening to Kill DeputyRead the Press Release
A man who made threatening phone calls to Allamakee County employees pled guilty on January 25, 2013, in federal court in Cedar Rapids.
Kenneth Haag, age 26, from Lansing, Iowa, was convicted of one count of using a telephone to transmit an interstate communication threatening to injure another person.
In a plea agreement, Haag admitted that on November 9, 2011, he called the Allamakee County Sheriff’s Office and threatened to kill an Allamakee County Sheriff’s Deputy. Other information filed in the case showed that Haag initiated numerous communications via telefax, email, or telephone, between about November 2011, and January 2012, to the Allamakee County Sheriff’s Office; the Allamakee County Clerk of Court Office; and State of Iowa Judges in Allamakee County. In several of the communications, Haag made threats to injure or kill county officials or judges.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Haag remains in the custody of the United States Marshal pending sentencing. Haag faces a possible maximum sentence of up to five years’ imprisonment, a $250,000 fine, a $100.00 special assessment, and up to three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-1001.
Man Pleads Guilty to Firearm ChargesRead the Press Release
BOSTON - A former Mattapan man pleaded guilty yesterday to possessing a firearm and ammunition.
Aylis Dryden, 27, pleaded guilty before U.S. District Judge Richard G. Stearns to being a felon in possession of a firearm and ammunition.
On April 7, 2010, four Boston Police officers were on routine patrol in an unmarked cruiser in the vicinity of the Heath Street Housing Development in Jamaica Plain when they observed a large group of people gathered, some drinking from open containers of alcohol. The officers observed Dryden act suspiciously and make adjustments to his center front waistband, prompting one of the officers to ask Dryden if he was carrying a gun. Although Dryden initially denied having a gun, he inadvertently revealed it when he lifted his shirt at the officers’ request. Ultimately, officers seized the gun as he attempted to flee. Dryden, a previously convicted felon, was arrested and transported in a cruiser, where the officers found additional ammunition.
Sentencing is scheduled for May 1, 2013. The sentence under the statute is a minimum of 15 years and up to life in prison, followed by up to five years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz; Guy Thomas, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives Boston Field Office; and Boston Police Commissioner Edward Davis, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Michelle L. Dineen Jerrett and Lisa Asiaf Schlatz.
Louisville Man, Formerly Employed as A Police Officer and Officer with the Kentucky Department of CorrectionsRead the Press Release
– Sentenced To 42 Months For Threatening A Federal Agent
BOWLING GREEN, Ky. – A Jefferson County, Kentucky resident, formerly employed as a police officer and officer with the Kentucky Department of Corrections was sentenced in U.S. District Court today, by Senior Judge Thomas B. Russell to 42 months in prison and 3 years’ supervised release for mailing threatening communications to a federal law enforcement officer and knowingly depositing a firearm in the mail announced David J. Hale, United States Attorney for the Western District of Kentucky.
Ted Ray Schlenker, age 48, pleaded guilty on October 24, 2012 to charges that he knowingly deposited for mail at the United States Post Office in Bowling Green, Kentucky on Scottsville Road, a written threatening communication and a Jennings, Bryco Arms, 9mm handgun, addressed to the personal residence of a Special Agent for the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
In open court, Schlenker admitted on April 25, 2012, while under investigation by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) for federal firearms violations, the defendant, Ted Ray Schlenker, placed a handgun and handwritten letter addressed to an ATF special agent in a mail receptacle at the United States Post Office on Scottsville Road in Bowling Green, Kentucky, which is located in the Western District of Kentucky. The envelope was addressed to Special Agent D.V.'s personal residence and read as follows:
"Dan if you want this to look like a suicide get me another piece because to use this one would be suicide. The slide is cracked on this one. Where ever you borrowed or stole it, give it back! If this is a set-up we will burn you with it! Just so you remember I have the DVD and I gonna make copies! I suggest you answer your other phone or return the Text! If you want this done right I suggest you get me a gun that works! Answer your other phone dam it.”Postal employees recovered a manila envelope which contained the handwritten note and the firearm, a Bryco, Model Jennings Nine, 9mm pistol, serial number 1350201.
The defendant knowingly and willfully mailed the firearm, an improperly mailed item, and letter which Special Agent D.V. reasonably took as a serious expression of the defendant's intent to inflict bodily harm. Furthermore, the mailing was perceived by Special Agent D.V. to effect some change or achieve some goal through intimidation.
According to an Affidavit filed in support of a federal criminal complaint, defendant Schlenker was being investigated by ATF for firearms violations in connection with Kentucky Gun Runners, Inc., a company formerly owned by Schlenker. Specifically, the agent to whom Schlenker mailed the gun and letter was conducting the investigation. In 2010, ATF conducted a compliance inspection on Kentucky Gun Runners, Inc., and discovered ten firearms not properly recorded and 49 firearms that were recorded, but missing from the store’s inventory. Schlenker is suspected of falsifying ATF forms. The ATF determined that Kentucky Gun Runners, Inc., had purchased the Jennings, Bryco Arms 9mm handgun, but did not officially record the purchase.
ATF conducted a federal search warrant on Schlenker’s Jefferson County, Kentucky residence on April 27, 2012. Agents located a white notepad inside a Ford Escape and a wrinkled piece of paper in a trash bag with the words, “Dan if you whant”. The phraseology and hand writing matched the writing of the letter sent to the ATF Special Agent, while the notepad had indentations of hand writing which matched the letter placed in the mail to be sent to the personal residence of the ATF Special Agent.
A search of the garage revealed several documents, including computer research data containing the personal information, including addresses, phone numbers, and personal vehicle types of law enforcement agents and their spouses. During the search, Schlenker is alleged to have remarked, “You know what they say, know your enemies.”
This case was prosecuted by Assistant United States Attorney Joshua Judd and was investigated by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives and the United States Postal Inspection Service and the Bowling Green Police Department.
Louisiana Man Sentenced for Purchasing Cold Pills in East TexasRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A48-year-old Shreveport, LA man has been sentenced for federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jay S. Gaines pleaded guilty on Sep. 4, 2012, to possession of pseudoephedrine with intent to manufacture methamphetamine and was sentenced to 57 months in federal prison today by U.S. District Judge Michael H. Schneider.
According to information presented in court, on Apr. 4, 2011, Gaines purchased cold pills containing pseudoephedrine at a Walmart store in Longview, Texas with the intent to manufacture methamphetamine. Within an hour, Gaines also made two other purchases of cold pills at another Walmart store and a Walgreens store in Longview.
Gaines’ co-defendants have all been sentenced. Jimmie Langston, Jr., was sentenced on Oct. 4, 2012 to 120 months in federal prison. Donnie Regis was sentenced to 75 months on June 21, 2012. Christopher Conley received a sentence of 100 months on Jan. 17, 2012. Connie Parker was sentenced to 70 months on Feb. 8, 2012. Stacy Campbell was sentenced to 75 months on June 1, 2012. Keith Kates received a 70 month sentence on June 21, 2012. Penny Mooney was sentenced to 57 months in federal prison on Feb. 8, 2012.
This case was investigated by the Texas Department of Public Safety Criminal Investigations Division and the Panola County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Mary Ann Cozby. ####Louisiana Man Sentenced for Dealing Meth in East TexasRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A35-year-old Zwolle, LA man has been sentenced to federal prison for drug trafficking charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Kinte Varness Garner pleaded guilty on Aug. 21, 2012, to conspiracy to possess with intent to distribute and distribution of methamphetamine and was sentenced to 262 months in federal prison today by U.S. District Judge Michael H. Schneider. Garner was also ordered to submit to forfeiture of $5,000.00.
According to information presented in court, up until September 2011, Garner conspired with another person to acquire and distribute more than 500 grams of methamphetamine throughout the Tyler, Texas area. A federal grand jury returned an indictment on Oct. 5, 2011, charging Garner with federal violations.
Garner’s co-defendant, Camera Neal Holden, Jr., was sentenced to 60 months in federal prison on Sep. 11, 2012.
This case was investigated by the Drug Enforcement Administration, the Canton Police Department and prosecuted by Assistant U.S. Attorney Bill Baldwin. ####Leesville Accountant Pleads Guilty to Failure to Report Taxes - More than $190,000 Taken in BonusesRead the Press Release
LAFAYETTE, La: United States Attorney Stephanie A. Finley announced today that Larry Wayne Bruce, 60, of Leesville, pleaded guilty Tuesday before U.S. District Judge Richard T. Haik to two counts of failure to pay taxes.
Bruce pleaded guilty to one count of the pending indictment for admitting to his failure to pay the proper amount of payroll taxes owed to the Internal Revenue Service while working as a financial officer at Express Marketing Incorporated in Leesville from 2003 to 2007. Bruce admitted it was his responsibility to pay the payroll taxes withheld from EMI employees, and also admitted to taking more than $190,000 in excess of his salary from EMI.
Bruce also pleaded guilty to another count of the pending indictment, where he admitted to not paying his personal taxes from 2005 until he left the company in 2007.
Bruce could face up to five years in prison, a fine of $250,000 or both with three years of supervised release on the first count, and he could face up to one year in prison, $25,000 in fines or both with one year supervised release for the other charge. Sentencing has not been scheduled.
The Internal Revenue Service conducted the investigation. Assistant U.S. Attorney Myers Namie prosecuted the case.
Las Cruces Man Sentenced to Seventy Months in Prison for Robbing 1st New Mexico Bank of Las Cruces in December 2011Read the Press Release
ALBUQUERQUE – Daniel Francis Jones, 51, of Las Cruces, N.M., was sentenced this morning to 70 months in prison followed by three years of supervised release for his bank robbery conviction. The sentence was announced by U.S. Attorney Kenneth J. Gonzales and Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI.
Jones was arrested on Dec. 13, 2011, on a criminal complaint alleging that he robbed the 1st New Mexico Bank of Las Cruces, located at 3000 E. Lohman in Las Cruces, on Dec. 13, 2011. He has been in federal custody since his arrest.
Court records reflect that Jones entered the bank with a backpack and approached a bank teller with a note demanding money. After obtaining cash from two bank tellers, Jones left the bank on foot and headed towards stores located near the bank. Shortly thereafter, officers of the Las Cruces Police Department detained Jones at pets store because he matched the description of the robber. Jones was arrested when the officers found him in possession of the stolen money.
Jones pled guilty to the bank robbery on March 8, 2012, without the benefit of a plea agreement.
The case was investigated by the Las Cruces office of the FBI and the Las Cruces Police Department, and was prosecuted by Assistant U.S. Attorney Amanda Gould of the U.S. Attorney’s Las Cruces Branch Office.
Larkin Troy Chandler Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on January 29, 2013, before Chief U.S. District Judge Richard F. Cebull, LARKIN TROY CHANDLER, a 46-year-old resident of Crow Agency, pled guilty to theft from an organization receiving federal funding. Sentencing has been set for May 1, 2013. He is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Carl E. Rostad, the government stated it would have proved at trial the following:
The Crow Tribal Historic Preservation Office (CTHPO) on the Crow Indian Reservation was created in 2005. The CTHPO is a designated office of the Crow Indian Tribe that provides for direct Tribal involvement and leadership in the protection and enhancement of Crow lands and cultural resources. It serves to identify, inventory, and protect culturally, archeologically, and historically important resources both on and off the reservation.
Each year, the CTHPO receives grant funds from the National Park Service, U.S. Department of the Interior. A requirement for any enterprise seeking to do work on the reservation that may disturb tribal lands - utilities, construction, energy exploration, development - is that the business employ the services of a CTHPO employee (archeological technician) to monitor the project to insure that lands of cultural or historic importance are not destroyed. The company is then charged for this monitoring service and payments are made to the Crow Tribe.
The Director of the CTHPO from approximately 2005 until November 15, 2011 is identified here as X.X. During the time X.X. was Director, most of the monitors were his family members. Two other monitors were not hired as Crow Tribe employees but were assigned as project monitors and received payment directly from the companies. CHANDLER was also an employee of the CTHPO.
Sometime in the summer of 2009, X.X. approached the Vice-Chairman of the Tribe and tried to get the process changed so that the companies could make direct payments to the monitors. When he was told he couldn't do that, he indicated he would take the matter up with the Chairman. The Chairman was never approached and did not provide any approval for X.X.'s request.
Even though his request was denied, X.X. began advising companies that payments would now be made directly to the tribal monitors assigned to the project. At first, in the summer of 2009, few direct payments were arranged. However, in the summer of 2010, the CTHPO staff person who insured that companies were properly billed and that CTHPO payments went to the Tribe left the office, and direct billing - having companies pay monitors personally instead of remitting the fee to the Crow Tribe - became much more prevalent.
From July 2009 to November 2011, a total of over $500,000 in monitoring service payments from the companies doing business on the Crow Reservation were diverted to the personal use and benefit of the employees of the CTHPO, including CHANDLER, and the two non-employees assigned to projects as monitors. X.X. did not serve as a monitor in the field. According to a GCM Services company representative, "the monitors often did not show up, and, if they did, they often only worked one to three hours."
When interviewed, CHANDLER confirmed that he had been a tribal employee being paid on a per hour basis for his services as a monitor. He also confirmed that he billed the companies directly, at the direction of X.X., for performing the services for which he was already being compensated by the Tribe.
The United States will seek restitution in the amount of $44,546.50, the amount of loss to the Crow Tribe directly attributable CHANDLER.
I meet regularly with tribal officials on each of Montana's reservations, and at each meeting they ask this office to do more to put an end to corruption and theft in the administration of federal grants and programs. I take - and have taken - their pleas to heart when my office created the Guardians Project with just that mission in mind. The change of plea today represents just one of many, many steps this office will take to respond the concerns of our Indian communities for honesty and integrity in tribal government." Michael W. Cotter, United States Attorney for the District of Montana.
CHANDLER faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by a team of agents and auditors working with the U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior, the Federal Bureau of Investigation, and the Criminal Investigation Division of the Internal Revenue Service.
Keith Daniel Skunkcap 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 January 29, 2013, before U.S. Magistrate Judge Keith Strong, KEITH DANIEL SKUNKCAP, a 21-year-old resident of Browning and an enrolled member of the Blackfeet Tribe, pled guilty to burglary. Sentencing has been set for May 10, 2013.
In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government stated it would have proved at trial the following:
On August 17, 2011, at approximately 2:00 a.m., SKUNKCAP entered the residence of T.L.G. The residence is located Browning, which is within the exterior boundaries of the Blackfeet Indian Reservation.
T.L.G., the owner of the residence, told SKUNKCAP to leave, but he refused. T.L.G. pointed to the back door of the residence, again requesting SKUNKCAP to leave. SKUNKCAP eventually pushed T.L.G. After being pushed, T.L.G. fell to the ground. As a result of the assault, T.L.G.'s upper lip was split open. T.L.G. was transported to Kalispell due to the seriousness of the facial laceration. T.L.G. underwent reconstructive surgery on her lip and nose.
In an interview with the FBI, SKUNKCAP admitted that he pushed T.L.G. Although SKUNKCAP claimed that T.L.G. hit him about seven times in the face, he did not have any injuries.
SKUNKCAP faces possible penalties of 20 years in prison, a $50,000 fine and 3 years supervised release.
The investigation was conducted by the Federal Bureau of Investigation.
Kansas City Man Sentenced to 30 Years for Armed Robbery, Firearms ViolationsRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Mo., man has been sentenced to 30 years for armed robbery and firearms violations, U.S. Attorney Barry Grissom said today.
Mark R. Davis, 35, Kansas City, Mo, was convicted in a jury trial in October 2012 on one count of robbery, one count of brandishing a firearm during a crime of violence and one count of unlawful possession of a firearm after a felony conviction.
Co-defendant Abasi Baker was convicted in a jury trial on 21 counts including seven counts of robbery, seven counts of unlawful possession of a firearm after a felony conviction and seven counts of brandishing a firearm during a robbery. He was sentenced to 164 years in federal prison.
The jury found Davis guilty of brandishing a .40 caliber Glock pistol while robbing the Radio Shack store at 6945 W. 7th Street in Overland Park on March 3, 2011. At the time, he was prohibited from possessing a firearm because of four prior felony convictions for robbery.Grissom commended the following agencies and individuals for their work on the case: The FBI and the FBI Violent Crimes/Fugitive Task Force; the Wyandotte County District Attorney’s Office; the U.S. Attorney, Western District of Missouri; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Kansas City, Mo., Police Department; the Kansas City, Kan., Police Department; he Overland Park Police Department; the Olathe Police Department; the Johnson County Sheriff’s Office; the St. Joseph, Mo., Police Department; the Lee’s Summit, Mo., Police Department; the Mission, Kan., Police Department; and assistant U.S. Attorney Terra Morehead, who prosecuted the case.
Jury Convicts Juarez-Sanchez Following Trial Involving Marijuana Grow Operation in Iron CountyRead the Press Release
SALT LAKE CITY – A jury convicted a Compton, Calif., man of manufacturing a controlled substance by cultivation in connection with a 2012 marijuana grow on U.S. Forest Service land in Iron County following a three-day trial late last week in U.S. District Court.
Roman Juarez-Sanchez, age 46, faces up to life in federal prison for the conviction with a 10-year mandatory minimum sentence. U.S. District Judge Ted Stewart, who presided over the trial, set sentencing for April 1, 2013, in St. George.
In recent years, drug trafficking organizations have been cultivating marijuana in the mountains of Southern Utah. Federal, local, and state agencies are coordinating efforts to reduce and eliminate this illegal and dangerous practice.
“This is a victory in the fight against marijuana grows on Utah’s public lands. DEA will continue to stand steadfast with our federal, state and local partners to keep dangerous drug trafficking organizations from setting up grow operations on public lands in Utah,” Frank Smith, Assistant Special Agent in Charge of DEA in Salt Lake City, said today.
Iron County Sheriff Mark Gower believes law enforcement officers in Utah have found a successful strategy for dealing with marijuana grows. “We have adopted a policy of being proactive rather than reactive in dealing with drug traffickers attempting to grow marijuana on Utah’s public lands. We’ve been aggressive in our efforts to identify and investigate those cultivating the marijuana as well as those who support the operations, like the defendant convicted in this case. Ultimately, successful cases start with boots on the ground and solid investigative work,” Sheriff Gower said.
Acting on tips from a citizen, law enforcement officers located the Iron County grow in July of last year and began conducting surveillance of the area to identify those involved in the grow operation. Officers executed a traffic stop later in July and arrested three individuals in the area of the grow. Jaurez-Sanchez was in the car along with two other individuals, Gabriela Lopez, age 25, of Compton, and Marcelo Balderas-Contreras, age 28, of Mira Loma, Calif. Officers found several large bags in the trunk of the car that contained more than 80 pounds of harvested marijuana. Lopez admitted that she and Juarez left California earlier in the day to deliver food to workers at the grow site and bring back harvested marijuana. Juarez-Sanchez told officers he was to be paid $3,000 for the trip. He said he knew where to meet the grow workers because he had been communicating with the on-site grow supervisor.
Law enforcement officers raided the marijuana grow a few days later but made no additional arrests. Officers found 4,211 marijuana plants at the grow site.
Evidence at Juarez-Sanchez’ trial last week showed that he played a significant role in the marijuana cultivation operation. Specifically, he organized the transportation of workers and supplies into the grow area and was trusted to haul large quantities of marijuana out of the cultivation site.
U.S. Attorney for Utah David B. Barlow said Juarez-Sanchez’ conviction should send an important message to those involved in marijuana cultivation operations. “This case illustrates that a person need not be physically present in the grow area to be considered a key player in a marijuana-grow operation. There was no evidence this defendant was ever in the grow site itself or that he ever planted, tended, or cut the plants himself. However, we had strong evidence that his efforts helped facilitate the crime. We will continue to aggressively prosecute those who are involved in marijuana grows on Utah’s public lands, including those whose actions aid and abet the operation,” Barlow said.
Prosecutors said that in addition to the 4,211 marijuana plants found at the cultivation area, forest trees were cut down, scarce water was diverted to the grow, and those involved in the cultivation left a large amount of trash in the national forest.
The two other defendants in the case, Lopez and Balderas-Contreras, reached plea agreements with federal prosecutors. Both pleaded guilty to one count of manufacture of a controlled substance by cultivation. Lopez admitted she aided and assisted in delivering food to those working in the Iron County marijuana cultivation site and helped transport harvested plants from the grow area. Balderas-Contreras admitted he assisted in cultivating marijuana plants and in transporting harvested marijuana away from the cultivation site. Sentencing for both is scheduled for March 4, 2013, in St. George.
“The organizations that grow and traffic marijuana on public lands pose a significant threat to public safety. Additionally, they do significant damage to our natural resources and public lands. The special agents and law enforcement officers of the U.S. Forest Service stand firm in their commitment to work with local, state, and federal partners to investigate, prosecute, and dismantle the organizations that choose to use our public lands to further their criminal enterprises,” Mike McKinney, Special Agent in Charge of the U.S. Forest Service in Utah, said today.
Local, state, and federal officers and prosecutors believe their unified efforts in the identification, investigation, and prosecution of individuals involved in marijuana grow operations in Utah is reducing the number of plants and grows in Utah. During the 2010 Utah outdoor marijuana grow season, enforcement efforts resulted in the seizure of 106,845 plants from 17 grows. In 2011, 78,363 plants were seized in nine grows. The 2012 grow season ended with a total of 13,177 plants seized from four grows.
The case was prosecuted by Assistant U.S. Attorneys Paul Kohler and Matt Bell with DEA Special Agent Cliff Lark as the lead case agent.
Jason Charles Shouse 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 January 29, 2013, before U.S. Magistrate Judge Keith Strong, JASON CHARLES SHOUSE, a 36-year-old resident of Cascade County, pled guilty to sexual exploitation of children and penalties for registered sex offenders. Sentencing has been set for May 10, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Cyndee L. Peterson, the government stated it would have proved at trial the following:
In 1997, in the Eighth Judicial District Court of Montana, SHOUSE was pled to sexual intercourse without consent. In June of 1998, he was sentenced to 20 years imprisonment with 18 years suspended. Due to that offense, SHOUSE was required to register as a sex offender.
In July 2012, the Cascade County Sheriff's Office received a report that photos which depicted child pornography were located on one of SHOUSE's old cell phones. The SD card from the old cell phone was seized and searched. Investigators located videos on the SD card which depict SHOUSE performing sexual acts which meet the federal definition of "sexually explicit conduct" on an approximately 2-year-old child. SHOUSE was identified on the videos and appeared to have filmed the videos himself in 2008.
SHOUSE faces possible penalties of a mandatory minimum of 25 years in prison and could be sentenced to 50 years, a $250,000 fine, and lifetime supervision. In addition, SHOUSE faces an additional mandatory 10 year imprisonment, consecutive to any other sentence, for penalties for registered sex offenders.
The investigation was a cooperative effort between the Internet Crimes Against Children (ICAC) Task Force, the Cascade County Sheriff's Office, and the Montana Division of Criminal Investigation.
Indictment: Man from North Carolina Set up $72,000 Drug Deal in WichitaRead the Press Release
WICHITA, KAN. – A man from North Carolina and two associates from Texas have been charged with coming to Wichita to sell more than $72,000 worth of methamphetamine, U.S. Attorney Barry Grissom said today.
Jorge Castro-Cisneros, 29, Hickory, N.C.; Fabrizio Tovar-Rodriguez, 26, Houston, Texas; and Daniel Santiago-Bermudez, 37, Houston, Texas, are charged with one count of possession with intent to distribute methamphetamine.
The men initially were charged in a criminal complaint filed Jan. 18 in U.S. District Court in Wichita. The complaint alleged that in October Castro-Cisneros talked to a Wichita Police Department detective working undercover about coming to Wichita to sell methamphetamine. Castro-Cisneros sent the detective a text indicating the methamphetamine would cost $24,000 a pound.
Castro-Cisneros arrived in Wichita Jan. 15 and the undercover detective picked him up at the Greyhound bus depot. Castro-Cisneros told the detective that the drugs would be arriving soon from Houston. On Jan. 16, a Chevy pickup with a Texas tag met Castro-Cisneros and the undercover detective at the Motel 6 at 5736 W. Kellogg. The detective told the driver of the pickup to follow him. Police stopped the pickup near Central and Ridge. They found a package hidden in the engine compartment containing more than 3 pounds of methamphetamine.
If convicted, the defendants face a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $5 million. The Wichita Police Department investigated. Assistant U.S. Attorney David Lind is prosecuting.
OTHER INDICTMENTSLlewellyn Richard, 44, Kansas City, Kan., was charged with 12 counts of robbery.
Richard initially was charged with nine counts of robbery in a criminal complaint filed Jan. 3 in U.S. District Court.
The three new robbery counts include: – Cricket Wireless, 840 Minnesota, Kansas City, Kan., Dec. 29, 2012
– Russell Stover Candies, 2814 Shawnee Mission Parkway, Fairway, Kan., Dec. 30, 2012.
– Nationwide Cellular, 4314 Rainbow Boulevard, Kansas City, Kan., Dec. 31, 2012.The other robberies include:
– Boost Mobile, 3726 State Avenue, Kansas City, Kan., Dec. 21, 2012.
– Dollar General, 2272 Quindaro, Kansas City, Kan., Dec. 25, 2012.
– Family Dollar, 1251 Central Avenue, Kansas City, Kan., Dec. 25, 2012.
– Quick Service gas station, 7959 State Avenue, Kansas City, Kan., Dec. 25, 2012.
– Boost Mobile, 7640 State Avenue, Kansas City, Kan., Dec. 26, 2012.
– Cricket store, 4635 Shawnee Drive, Kansas City, Kan., Dec. 27, 2012.
– Sally’s Beauty Supply, 5020 Roe Boulevard, Roeland Park, Kan., Dec. 28, 2012.
– Dollar General, 2801 S. 47th Street, Kansas City, Kan., Dec. 28, 2012.
– Family Dollar, 3129 State Avenue, Kansas City, Kan., Dec. 30, 2012.
According to a criminal complaint and affidavit, the first robbery at the Boost Mobile store occurred at about 1:14 p.m. Dec. 21 when Richard walked behind the counter, grabbed a clerk around the waist and demanded money. He gestured to her as if he had a gun in his jacket pocket. He fled the store with the money.In the second robbery at the Dollar General Store on Dec. 24, he walked behind the counter and pushed the clerk. The clerk stated she felt what she believed to be a gun that the robber shoved into her back. She said he threatened her, saying “Don’t look at me! Don’t turn around!”
On Jan. 1, 2013, officers of the Kansas City, Kan., Police Department stopped a 1997 red GMC pickup. The driver pulled over and then drove away when the officers approached the truck. A pursuit ended when the truck crashed and Richard was arrested.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count.
The Kansas City, Kan., Police Department investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
Ramiro Gonzalez-Gonzalez, 41, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported and two counts of making a false claim of U.S. citizenship. He was found Jan. 18, 2013, in Wyandotte County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison without parole and a fine up to $250,000 on the re-entry charge and a maximum penalty of three years and a fine up to $250,000 on each of the other counts. The Kansas Department of Revenue and ICE Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Jeremy L. Smith, 41, Wichita, Kan. and Brandee L. Rimer, 31, Wichita, Kan., are charged in a superseding indictment with one count of possession of stolen mail, two counts of producing a false identity document, two counts of using an unauthorized credit card and three counts of aggravated identity theft. In addition, Smith is charged with one count of aggravated identity theft, one count of forging an endorsement on a savings bond and one count of possession of a false identification document with intent to commit fraud.
Upon conviction, the crimes carry the following penalties: Possession of stolen mail: A maximum penalty of five years and a fine up to $250,000.
Production of false identity documents: A maximum penalty of 15 years and a fine up to $250,000 on each count.
Aggravated identity theft: A mandatory two years to run consecutive to any other sentence and a fine up to $250,000 on each count.
Using an unauthorized credit card: A maximum penalty of 10 years and a fine up to $250,000 on each count.
Forging an endorsement on a bond: A maximum penalty of one year and a fine up to $100,000.
Possession of a false identification with intent to defraud: A maximum penalty of 15 years and a fine up to $250,000.The U.S. Secret Service investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Julius T. Williams, 33, Wichita, Kan., is charged with one count of unlawful possession of a firearm after a felony conviction and six counts of unlawful possession of ammunition after a felony conviction. The crimes are alleged to have occurred Dec. 19, 2012, in Sedgwick County, Kan.
If convicted, he faces a penalty of not less than 15 years and not more than life and a fine up to $250,000 on each count. The Wichita Police Department investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Indictment Unsealed on Plot to Intimidate WitnessRead the Press Release
Tulsa - United States Attorney Danny C. Williams, Sr. announced today the unsealing of an indictment with charges against four men and one woman for plotting to interfere with a federal witness. Christopher Aaron Charlton (age 30), Erin Elizabeth Mackool (age 26), William Lucas Mayberry (age 26), Charles August Hoffman (age 30) and David Bryce Brooner (age 37), all of Tulsa, are accused of conspiring to prevent a witness from communicating with federal law enforcement information concerning a violent crime. Documents filed in the case described possession of duct tape, zip ties and firearms for use with threats and intimidation to prevent the witness from communicating with authorities.
Additional charges against the men and woman were also filed for their illegal possession of firearms, including an unregistered sawed-off shotgun. The conspirators could receive prison sentences of up to thirty (30) years imprisonment with no parole if convicted of the plot to interfere with the witness.
U.S. Attorney Williams stressed that interfering with any witness, whether state or federal, is a serious offense that will result in lengthy sentences. Williams noted that the U.S. Attorney’s Office for the Northern District of Oklahoma cooperates fully with federal, state and local authorities to protect witnesses who come forward with information regarding criminal behavior. Agencies participating in the investigation include the Department of Homeland Security, the Tulsa Police Department and the Tulsa County District Attorney’s Office.
Indictments are a charging instrument and each defendant is presumed innocent until convicted of the charged crimes.