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10 January 2013
Eagle Butte Man Pleads Guilty to AssaultRead the Press Release
US Attorney Brendan V. Johnson announced that Ryan Wright, age 27, of Eagle Butte, appeared before US District Judge Roberto A. Lange on January 10, 2013, and pled guilty to Count III of the Indictment that charged him with Assault Resulting in Serious Bodily Injury. The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both.
The charge stems from a November 14, 2012, incident when Wright, after an evening of drinking to celebrate a move to a new residence, argued with other people present, left the residence but came back and hit the victim with his car, running the victim over several times. The victim suffered fractures in his left ankle and pelvis which required surgery.
The investigation was conducted by the Bureau of Indian Affairs. Assistant US Attorney Kathryn N. Rich is prosecuting the case. Wright was remanded to the custody of the US Marshal pending sentencing. A sentencing date has been set for April 1, 2013.
Denton County Man Sentenced for Child Exploitation ViolationsRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – A 53-year-old Hickory Creek, Texas man has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Perry Joe Wicks pleaded guilty on June 15, 2013, to online enticement of a minor to engage in sexual activity and was sentenced to 121 months in federal prison on Jan. 9, 2013 by U.S. District Judge Richard Schell.According to information presented in court, Wicks communicated with law enforcement agents who were acting in an undercover capacity. The law enforcement agents represented that they were a minor female who was available for sexual activity for a price. Wicks agreed to pay for sex with the minor female and was apprehended by law enforcement. As a result of this conviction, Wicks will be placed on the required to register as a sex offender following his imprisonment.
This case was investigated by the Plano Police Department, the Collin County Sheriff’s Office and the U.S. Secret Service and prosecuted by Assistant U.S. Attorney Mandy Griffith. ####
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.Dalton Meth Dealer Sentenced to PrisonRead the Press Release
McGuire Fought Police Officers When Being Arrested
And Later Tried To Escape From the HospitalROME, Ga. – A Dalton man who sold a pound of methamphetamine to a police cooperator, Jeffrey McGuire, 40, of Dalton, Georgia, was sentenced today to 11 years, 6 months by United States District Judge Harold L. Murphy for selling a pound of methamphetamine to a man cooperating with the police investigation.
“Methamphetamine has had a devastating impact on communities in North Georgia,” said United States Attorney Sally Quillian Yates. “This defendant was caught trying to sell a pound of very pure methamphetamine. Today’s prison sentence will prevent this meth dealer from further contributing to the deterioration of our community.”
McGuire was sentenced to 11 years, 6 months to be followed by 4 years of supervised release. McGuire was convicted on October 18, 2012, upon his plea of guilty.
According to United States Attorney Yates, the charges and other information presented in court, in January 2012, McGuire agreed to sell one pound of methamphetamine to a man for $17,000. Unbeknownst to McGuire, his customer was cooperating with the police investigation and was working at the direction of the police. The police recorded phone calls between McGuire and the cooperator as they made arrangements for the drug deal. During one of those calls, the cooperator told McGuire that he would keep the money for the drugs in the trunk of his car. McGuire responded, “There better not be a Mexican in the trunk or I’ll have to shoot him.”
Eventually, McGuire and the cooperator agreed to meet at a Kangaroo gas station in Dalton. The police observed McGuire arrive in a BMW SUV. The cooperator arrived a few minutes later and parked next to McGuire’s SUV. McGuire got into the passenger seat of the cooperator’s car and showed him the drugs. The cooperator then gave a prearranged signal to the police that McGuire had the methamphetamine. The police moved in to arrest McGuire and pulled him out of the cooperator’s car. However, McGuire vigorously resisted arrest. It took the police several minutes to subdue and restrain him. The police recovered a pound of methamphetamine that was 90% pure. They also found a loaded .25 caliber pistol in the SUV.
Due to injuries that McGuire received while resisting arrest, he was taken to the hospital. A Whitfield County deputy sheriff was present to guard him. Despite the deputy sheriff’s presence, McGuire tried to escape. He ran down the hospital hallway and twice struck a nurse. Even after the deputy sheriff used a Taser on McGuire, he continued to struggle and tried to grab the deputy sheriff’s firearm. The deputy sheriff was ultimately able to use sufficient force to subdue McGuire.
This case was investigated by special agents of the Federal Bureau of Investigation, the FBI Conasauga Safe Streets Task Force, and Whitfield County Sheriff’s Office.
Assistant United States Attorneys Nekia S. Hackworth and Paul R. Jones prosecuted the case.
For further information please contact the U.S. Attorney's Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Cristian Edgardo Mejia-diaz Pleads Guilty to Illegal Re-entryRead the Press Release
CRISTIAN EDGARDO MEJIA-DIAZ, age 25, a citizen of El Salvador, pled guilty in federal court today before U. S. District Judge Nannette Jolivette Brown to a one-count indictment charging him with illegal re-entry by a removed alien, announced U. S. Attorney Dana J. Boente.
According to court documents, on November 13, 2012, MEJIA, an alien who had previously been removed from the United States, was found in Jefferson Parish, within the Eastern District of Louisiana, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States.
The single count carries a maximum statutory penalty of two (2) years imprisonment, a fine of $250,000, and one (1) year of supervised release following any term of imprisonment. Sentencing is scheduled for April 18, 2013 at 10:00 A.M.The case was investigated by U. S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations with assistance from the Jefferson Parish Sheriff’s Office. The case is being prosecuted by Special Assistant U. S. Attorney Robert Weir.
(Download Indictment )
Corporate Employee Sentenced for Embezzlement and Tax FraudRead the Press Release
PHILADELPHIA - Sheila Kaye Jameson, 55, of Blandon, PA, was sentenced today to 48 months in prison for embezzlement and tax fraud. In addition to the prison term, U.S. District Court Judge Lawrence Stengel ordered restitution in the amount of $1,864,024 to EnerSys and its insurer, and taxes owed to the IRS in the amount of $256,447 (excluding penalties and interest), and three years of supervised release three years. She must report to the Bureau of Prisons on March 11, 2013.
Jameson was a Logistics Analyst for EnerSys Corporation in Reading, Pennsylania, when she embezzled approximately $1.8 million dollars from EnerSys Corporation by using a shell corporation, Aries Consulting Group. She created Aries Consulting for the purpose of sending bogus invoices to EnerSys, requesting payment which Aries Consulting Group was not entitled to receive. Jameson also failed to include any of the embezzled income on federal income tax returns that she filed with the Internal Revenue Service. She pleaded guilty to mail fraud and filing false tax returns.
The case was investigated by the FBI and the Internal Revenue Service Criminal Investigation and was prosecuted by Assistant United States Attorney Floyd J. Miller.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Connecticut Man Admits Mailing Threatening LettersRead the Press Release
January 10, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that ROLAND PREJEAN, also known as “Gary Joseph Gravelle,” 45, formerly of Thomaston and Morris, Conn., pleaded guilty today before Senior United States District Judge Warren W. Eginton in Bridgeport to federal charges stemming from his mailing of multiple threatening letters.
“We will vigorously investigate and prosecute hoax crimes that threaten violence,” stated U.S. Attorney Fein. “These crimes cause emotional distress for victims and waste the valuable time and resources of our law enforcement community.”
According to court documents and statements made in court, in early September 2010, PREJEAN mailed a threatening letter to the Thomaston Post Office claiming that he had planted a hidden bomb on a remote timer in the Post Office. The letter resulted in the evacuation of the Thomaston Post Office as well as the Thomaston Town Hall and a Thomaston Public School, which were in the immediate vicinity of the Post Office. Bomb technicians from the Connecticut State Police Emergency Services Unit searched the post office for explosive or incendiary devices with negative results.
In addition, PREJEAN mailed a letter to a Connecticut Superior Court Judge in New London that included a substance that was represented to be “Liquid Anthrax,” and he sent threatening letters to a private individual and a probation officer in Connecticut. In those letters PREJEAN threatened to kill numerous people, including a federal employee.
PREJEAN, who has been detained since his arrest in North Dakota on September 7, 2010, pleaded guilty to one count of using the U.S. Mail to communicate a bomb threat and four counts of mailing threatening communications.
Judge Eginton has scheduled sentencing for April 8, 2013, at which time PREJEAN faces a maximum term of imprisonment of 10 years for making a bomb threat through the mail, a maximum term of imprisonment of 10 years for mailing a threatening communication to federal employees and a maximum term of imprisonment of five years of each of the three counts of mailing a threatening communication.
At sentencing, the government will present evidence of more than 50 other threatening letters that PREJEAN mailed both prior to his arrest and while he was detained in federal custody.
U.S. Attorney Fein commended the substantial efforts and cooperation of the several agencies involved in this investigation including the Federal Bureau of Investigation in New Haven, Minneapolis, and Bismarck; the United States Postal Inspection Service in Connecticut and North Dakota; the United States Marshals Service in Connecticut; the Connecticut State Police Emergency Services Unit and the Thomaston Police Department.
U.S. Attorney Fein also acknowledged the critical assistance provided by the U.S. Attorney’s Office for the District of North Dakota.
This case is being prosecuted by Assistant United States Attorney David E. Novick.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Cleveland Man Sentenced to Three Years in Prison for Crimes Related to Credit-Union CollapseRead the Press Release
Zrino Jukic was sentenced to 37 months in prison and ordered to pay nearly $1.7 million in restitution for crimes related to the collapse of the St. Paul Croatian Federal Credit Union.
Jukic, 42, of Cleveland, previously pleaded guilty to one count of bank fraud and one count of money laundering.
Jukic was a co-owner of the Zlato Group, along with Anthony Raguz, who also served as the credit union’s chief operating officer. Jukic engaged in a scheme to defraud the credit union by providing false information in connection with approximately 11 loan applications. The proceeds of these fraudulent loans were used to allow Jukic and Raguz -- through their company, the Zlato Group -- to invest in certain business ventures, according to court documents.
Jukic also engaged in a money laundering transaction by transferring fraudulently obtained funds from a Zlato Group bank account to his own bank account, according to court documents.
St. Paul Croatian Federal Credit Union (SPCFCU) was placed into conservatorship in April 2010, when it served 5,400 members and was believed to have assets of more than $238 million. The National Credit Union Association discontinued operation of SPCFCU when it was determined to be insolvent, making it the largest credit-union failure in American history.
To date, 24 people have been indicted for criminal activity related to the credit union. Raguz was sentenced to 14 years in prison and ordered to repay $72.5 million last year. Koljo Nikolovski was sentenced to 18 years in prison for his role in the credit-union collapse.
This case was prosecuted by Assistant U.S. Attorneys Bridget M. Brennan and Jack Sammon following an investigation by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigations.
Cincinnati Man Pleads Guilty to Conspiring to Use Stolen Identities to Claim Millions in Fraudulent Income Tax ReturnsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Tawanda Marimbire, 23, of Cincinnati pleaded guilty in U.S. District Court to conspiring with others to use stolen identities and obtain fraudulent income tax refunds.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Mark Porter, Special Agent in Charge, U.S. Secret Service, and Darryl Williams, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office (IRS), announced the plea entered today before Chief U.S. District Judge Susan Dlott.
Mirambire pleaded guilty to one count of conspiracy to commit wire fraud. According to court documents, Mirambire and others began the conspiracy in 2007 and continued through approximately April 2012.
Members of the conspiracy stole identities and used them to file fraudulent income tax returns, receiving refunds on debit cards. Once the false income tax refunds were deposited on the prepaid debit cards, the cash was removed from the debit cards at ATM machines or by purchasing money orders. Mirambire and other coconspirators then committed additional federal offenses through their attempts to transfer, conceal, and divert the proceeds of this criminal activity. The cash was sometimes used by the conspirators to purchase expensive vehicles for transport to Zimbabwe. Mirambire and other conspirators also transferred the fraud proceeds to Zimbabwe in various ways, including direct wires.
The plea agreement says there were more than 250 victims and the amount of loss is between $2.5 million and $7 million.
Mirambire was one of seven indicted in September 2012. Charges against others are pending. Five of those charged remain fugitives. They are: Kudzaiishe C. Marimbire, 34
Hlomera Mabhande, 30
Johanes Tagarisa, 37
Andrew T. Bere, 22
Julius Marimbire, 32The remaining defendant is on bond.
Conspiracy to commit wire fraud is punishable by up to 20 years in prison. Judge Dlott will schedule a sentencing hearing.
Assistant United States Attorney Timothy Mangan is representing the United States in this case.
Cellular Telephone Store Robber SentencedRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that MARQUAIL EARL MOURING, 23, of Greenville, North Carolina, was sentenced today by Senior United States District Judge Malcolm J. Howard for his role in a cellular telephone store robbery in Greenville in May of 2011. On May 3, 2011, MOURING and two co-defendants robbed, at gunpoint, the U.S. Cellular store on Southwest Greenville Boulevard in Greenville, netting $1,080.00.
On October 15, 2012, MOURING pled guilty to a count of Hobbs Act Robbery, in violation of Title 18, United States Code, Section 1951, and a count of using or carrying a firearm during and in relation to a crime of violence, or possessing a firearm in furtherance of a crime, in violation of Title 18, United States Code, Section 924(c)(1)(A).
Senior Judge Howard sentenced MOURING to 108 months in prison and 5 years of supervised release. MOURING was also ordered to pay restitution to U.S. Cellular in the amount of $1,080.00.
One other defendant, Julius Deshawn Hobbs of Greenville, was previously sentenced to 132 months for his role in this robbery and two others. The remaining defendant, James Arthur Acklin, Jr. of Greenville, has pled guilty in the case and is pending sentencing at a future date.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greenville Police Department. Assistant United States Attorney John Bennett is prosecuting the case.
California Man Sentenced to More Than 24 Years for Role in Drug Trafficking Organization ConspiracyRead the Press Release
Tampa, Florida - U.S. District Judge James S. Moody, Jr. today sentenced Sergio Godinez Del Toro (47, Napa, California) to 24 years and four months in federal prison for conspiring with others to distribute, and for aiding and abetting others in possessing with intent to distribute, 500 grams or more of methamphetamine. Godinez Del Toro was found guilty on October 16, 2012, following a jury trial.
According to testimony presented at trial, Godinez Del Toro was a leader in a California-based drug trafficking organization (DTO) that was attempting to establish a methamphetamine and marijuana distribution network in central Florida. In January 2012, the DTO shipped eight pounds of marijuana to Haines City, sold the marijuana, and laundered the proceeds through banks in Pasco County.
In February 2012, the DTO attempted to transport twelve pounds of methamphetamine to Dade City, Florida from California, through Arkansas. The drugs were intercepted by the Drug Enforcement Administration and Arkansas State Police, outside of Jonesboro, Arkansas.
In March 2012, the DTO shipped a total of 24 pounds of methamphetamine (valued at $320,000) to Dade City, in six separate UPS shipments. Godinez Del Toro arrived in Dade City on March 28, after the methamphetamine had been shipped, to oversee the distribution and transfer of the drug proceeds back to California. On March 30, he transferred at least $6,000 in drug proceeds through two separate banks. On April 5, 2012, the DEA and the Pasco County Sheriff's Office seized seven pounds of the methamphetamine and arrested Godinez Del Toro and two of his co-conspirators.
This case was investigated by the Drug Enforcement Administration and the Pasco County Sheriff's Office as part of an on-going Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation's drug supply. The case was prosecuted by Assistant United States Attorney Christopher F. Murray.Buffalo man sentenced for attempted receipt of child pornographyRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Robert P. Dombrowski, 51, of Buffalo, N.Y., who was convicted of attempted receipt of child pornography, was sentenced to 60 months in prison and 10 years supervised release by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Edward H. White, who handled the case, stated that between February 7, 2012 and March 9, 2012, the defendant engaged in chats over the internet with undercover FBI Agents who were posing as a fifteen year old girl. During the chats, Dombrowski attempted to receive child pornography through the internet on his home computer. The defendant also made plans to meet with who he thought was a fifteen year old girl at a restaurant with the purpose of engaging in sexual activity with the girl involving sex toys. The defendant was apprehended by law enforcement officials who discovered the sex toys referenced in the chats in the defendant’s vehicle.
The sentencing is the culmination of an investigation on the part of Agents of the Federal Bureau of Investigation, under the direction of Richard M. Frankel, Acting Special Agent in Charge, the Cheektowaga Police Department under the direction of David Zack, Chief of Police, and the Violent Crimes Against Children Task Force.Boyette SentencedRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that RICHARD GLENN BOYETTE, age 48, of Zachary, Louisiana, was sentenced today by U.S. District Judge James J. Brady to a term of imprisonment of fifty-one (51) months.
BOYETTE had previously pled guilty to mail fraud in connection with a multi-year scheme to defraud Commercial Tire of Louisiana, Inc. (“Commercial Tire”), located in Baker, Louisiana, with offices in Scott and Hammond. While working as the company’s Controller, from 2001 through late 2010, BOYETTE admitted defrauding the company and its employees. To execute the scheme, the defendant (a) created and approved fraudulent payroll checks to himself, which he was not authorized to receive; (b) obtained fraudulent payroll checks and gained control over the funds; (c) created false entries in the company’s accounting records that falsely reflected that the fraudulent payroll checks had actually been issued to other employees; and (d) prepared and distributed fraudulent W-2s that concealed the stolen funds.
At today’s sentencing, the Court found that BOYETTE’s fraudulent scheme caused a loss to Commercial Tire of more than $1.2 million. Accordingly, BOYETTE was ordered to pay restitution in the amount of $1,283,151. BOYETTE was also ordered to forfeit an additional $1,283,151 to the United States as proceeds of his crime. Following his release from imprisonment, BOYETTE will also be required to serve a two-year term of supervised release.
This investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Alan A. Stevens and James P. Thompson.
Bobbi Rochelle Hurley Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on January 10, 2013, before U.S. District Judge Dana L. Christensen, BOBBI ROCHELLE HURLEY, a 42-year-old resident of Seeley Lake, appeared for sentencing. HURLEY was sentenced to a term of:
- Community Confinement: 8 months
- Special Assessment: $100.00
- Probation: 5 years
HURLEY was sentenced in connection with her guilty plea to being a felon-in-possession of a firearm.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
On September 24, 2011, HURLEY, a convicted felon on state supervision, possessed a Smith & Wesson .44-magnum revolver in the Lolo National Forest. United States Forest Service officers and fire suppression crews located HURLEY and her boyfriend while investigating an out of control/run away campfire. The USFS officers and fire suppression crew members saw HURLEY and her boyfriend shoot the revolver at green trees near them. HURLEY later admitted that she shot the revolver.
A USFS wild land firefighter observed both HURLEY and her boyfriend shoot the revolver across the drainage in a south/southeasterly direction from his location. The firefighter then advised them to stop shooting due to firefighters and the helicopter in the area fighting the fire. They complied with his request.
During this time, HURLEY lost her keys and requested a ride to Seeley Lake. The USFS officer who gave HURLEY and her boyfriend a ride secured a Smith & Wesson .44 magnum revolver, model 629-3. The officer unloaded several rounds from the revolver and secured in the front seat of his patrol vehicle while transporting them. The officer then returned the revolver to HURLEY's boyfriend as he did not run a criminal history check on either one until November 2, 2011.
When interviewed later, HURLEY stated that she unsure how many times she fired the pistol. HURLEY acknowledged that she was a convicted felon who could not possess firearms.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that HURLEY will likely serve all of the time imposed by the court. In the federal system, HURLEY does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Law Enforcement and Investigations Division of the U.S. Forest Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Montana Probation and Parole.
Beckley Man Sentenced to Prison Time for Burglary of Federal Post OfficeRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced that a Raleigh County man was sentenced (Jan. 10) to one year in federal prison followed by two years of supervised release for burglary and aiding and abetting the burglary of a federal post office. Timothy Taylor, 31, of Beckley, was previously convicted in August 2012 by a federal jury sitting in Beckley for his role in the post office burglary scheme. Trial evidence revealed that Taylor forcibly broke into or aided and abetted co-defendant Benjamin Webb, 39, in the forcible break-in of the Fairdale Post Office.
Webb admitted that on October 30, 2011, he and co-defendant Taylor arrived at the Fairdale Post Office located in Beckley, W.Va. and gained entry into the post office by smashing a glass door using a sledgehammer. The post office was closed at the time the burglary occurred. Webb further admitted that once he and Taylor were inside of the post office, they stole nine packages and fled the scene.
Webb also admitted that the packages stolen from the post office were addressed to him and contained quantities of prohibited synthetic stimulants commonly known as “bath salts.”
Webb was previously sentenced in August 2012 to eight months in federal prison and three years of supervised release for his role in the scheme.
The Court also ordered the defendant to pay restitution in an amount not to exceed $1228, including the damage to the post office and the value of the stolen mail.
The United States Postal Inspection Service and the Raleigh County Sheriff’s Office conducted the investigation. Assistant United States Attorneys Erik Goes and Larry Ellis handled the prosecution. The sentence was imposed by United States District Judge Irene C. Berger.
Beavers SentencedRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that RAYMOND L. BEAVERS, age 48, of Denham Springs, Louisiana, was sentenced today by U.S. District Judge James J. Brady to serve twelve months and one day in federal prison. BEAVERS was also ordered to pay $127,600 in restitution to the United States Coast Guard, and ordered to forfeit an additional $69,637.15 as proceeds of his offenses.
BEAVERS previously pled guilty to two counts of mail fraud arising out of a lengthy scheme to defraud the Coast Guard, from February 2007 through March 2008, while serving as the Supervisor of the United States Coast Guard’s Electronic Support Detachment (“ESD”) at the Eighth District in New Orleans, Louisiana. In connection with his guilty plea, BEAVERS admitted that he stole electronics equipment from the Coast Guard and sold the equipment, often using eBay and PayPal, for his own personal profit. The equipment had a value of more than $120,000.
“Today's sentencing demonstrates our commitment to fully prosecuting those who try to defraud the federal government and the American taxpayer,” said Capt. Jon Gage, commanding officer of Coast Guard Base New Orleans. “The illegal activity was uncovered and successfully prosecuted because of the staunch partnership between the Coast Guard Investigative Service, the U.S. Attorney's Office, and other federal agencies.”
U.S. Attorney Donald J. Cazayoux, Jr., stated, “We appreciate the work of the Coast Guard Investigative Service to uncover the defendant’s scheme. We will continue to work with our law enforcement partners to investigate and prosecute this type of criminal activity, especially when committed by those who occupy positions of public trust.”
This investigation was conducted by the United States Coast Guard Investigative Service and the U.S. Department of Homeland Security, Office of Inspector General, with assistance from the Louisiana State Police and the Walker Police Department.
The case is being prosecuted by Assistant United States Attorneys Alan A. Stevens and James P. Thompson.
Barrio Azteca Associate Sentenced in Texas to 18 Months in Prison for Role in Racketeering ConspiracyRead the Press Release
WASHINGTON – An associate of the Barrio Azteca (BA), a trans-national border gang allied with the Juarez Cartel, was sentenced today to serve 18 months in prison, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Robert Pitman for the Western District of Texas, FBI Special Agent in Charge Mark Morgan of the FBI’s El Paso, Texas, Office and Administrator Michele M. Leonhart of the U.S. Drug Enforcement Administration (DEA).
April Cardoza, 24, was sentenced today by U.S. District Judge Kathleen Cardone in the Western District of Texas. In addition to her prison term, Cardoza was sentenced to serve five years of supervised release.
On Oct. 18, 2012, Cardoza pleaded guilty to one count of conspiracy to commit racketeering offenses (RICO).
According to court documents and information presented in court throughout this case, the Barrio Azteca is a violent street and prison gang that began in the late 1980s and expanded into a transnational criminal organization. In the 2000s, the BA formed an alliance in Mexico with “La Linea,” which is part of the Juarez Drug Cartel (also known as the Vincente Carrillo Fuentes Drug Cartel or “VCF”). The purpose of the BA-La Linea alliance was to battle the Chapo Guzman Cartel and its allies for control of the drug trafficking routes through Juarez and Chihuahua. The drug routes through Juarez, known as the Juarez Plaza, are important to drug trafficking organizations because they are a principal illicit drug trafficking conduit into the United States.
According to court documents and information presented in court, Cardoza assisted the BA by providing communication to and from BA members, including BA Captain Manuel Cardoza, and facilitating money laundering.
Cardoza and 34 other BA members and associates based in the United States and Mexico were charged in a 12-count third superseding indictment unsealed in March 2011. The indictment contains charges related to various alleged criminal acts, including racketeering, narcotics distribution and importation, retaliation against persons providing information to U.S. law enforcement, extortion, money laundering, obstruction of justice and murder, including the 2010 Juarez consulate murders.
Of the 35 defendants charged, 33 have been apprehended. Twenty-five of those defendants, including Cardoza, have pleaded guilty. One defendant committed suicide while imprisoned during his trial. Another defendant was extradited from Mexico and is awaiting trial. Six other defendants are pending extradition from Mexico. U.S. and Mexican law enforcement are actively seeking to apprehend the two remaining fugitives in this case, including Luis Mendez and Eduardo Ravelo, an FBI Top Ten Most Wanted Fugitive.
The case is being prosecuted by Trial Attorney Joseph A. Cooley of the Criminal Division’s Organized Crime and Gang Section, Trial Attorney Brian Skaret of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney John Gibson of the Western District of Texas, El Paso Division. The U.S. Attorney’s Office for the District of New Mexico provided significant assistance in this case, including by Assistant U.S. Attorney Sarah Davenport. Valuable assistance was provided by the Criminal Division’s Offices of International Affairs and Enforcement Operations.
The case was investigated by the FBI’s El Paso Field Office, Albuquerque Field Office (Las Cruces Resident Agency), DEA Juarez and DEA El Paso. Special assistance was provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement; the U.S. Marshals Service; U.S. Customs and Border Protection; Federal Bureau of Prisons; U.S. Diplomatic Security Service; the Texas Department of Public Safety; the Texas Department of Criminal Justice; El Paso Police Department; El Paso County Sheriff’s Office; El Paso Independent School District Police Department; Texas Alcohol and Beverage Commission; New Mexico State Police; Dona Ana County, N.M., Sheriff’s Office; Las Cruces, N.M., Police Department; Southern New Mexico Correctional Facility; and Otero County Prison Facility New Mexico.
Attorney Sentenced to Seven Years in Prison for Racketeering and Money Laundering Offenses Committed on Behalf of Mexican MafiaRead the Press Release
LOS ANGELES – A federal criminal defense attorney was sentenced this afternoon to seven years in federal prison for his conviction on racketeering and money laundering offenses committed on behalf of the Mexican Mafia and the 18th Street gang.
Isaac Guillen, 52, received the 84-month sentence from United States District Judge Dean D. Pregerson.
Guillen was a member of a street gang during his late teens, leaving that life behind to attend the UCLA School of Law and become a successful criminal defense attorney. But he became an associate of the Columbia Lil' Cycos (CLCS) clique of the 18th Street gang while doing legal work for a member of that criminal street gang.
Guillen admitted that he used the shield of the attorney-client privilege to relay CLCS communications to and from convicted Mexican Mafia member Francisco “Puppet” Martinez, who was serving multiple life sentences at the federal “supermax” prison in Florence, Colorado. With Guillen’s help, Martinez was able to continue to run the CLCS from behind the walls of the United States Penitentiary, Administrative Maximum Facility, which is regarded as the nation’s most secure prison.
In addition to facilitating communications between Martinez and the CLCS leadership, Guillen laundered more than $1.3 million dollars in drug and extortion proceeds on the organization’s behalf by, among other things, creating three businesses and providing funds for the establishment of a methamphetamine laboratory.
The State Bar of California disbarred Guillen in late 2010.
According to court documents and evidence presented at trial, the CLCS used violence and intimidation to control narcotics distribution in an area adjoining MacArthur Park in the Westlake District of Los Angeles. Under the orders of CLCS leadership, narcotics suppliers and street dealers paid “rent” – typically a percentage of proceeds from the sale of narcotics – in exchange for permission from the CLCS to sell narcotics in the gang’s territory. Those who paid rent received the exclusive authorization to sell narcotics in CLCS territory, as well as protection from rivals. Street vendors operating in CLCS Organization territory also were required to pay rent to the organization in order to be allowed to sell their wares near MacArthur Park. The CLCS made tens of thousands of dollars a week through its collection of rent. The failure or refusal to pay rent and otherwise follow the gang’s rules would result in retribution, including acts of violence.
A street vendor who refused to make a $50 rent payment to the CLCS was targeted to be killed by members of the gang in a shooting on September 15, 2007. The man survived despite being shot four times, but a 23-day-old infant sleeping in a stroller next to the vendor was struck and killed.
Forty-three members and associates of the CLCS were charged in a 2009 federal racketeering indictment that alleged acts of violence, narcotics distribution, money laundering and various violent crimes in aid of racketeering (VICAR). Thirty-seven of the defendants named in the indictment have been convicted in either federal or state court. The remaining six defendants are fugitives.
The CLCS racketeering case was investigated by the Federal Bureau of Investigation and the Los Angeles Police Department.
Release No. 13-006
Armed Career Criminal Sentenced to 188 Months ImprisonmentRead the Press Release
Yakima – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that David Allen Vickers, age 40, of Yakima, Washington , was sentenced for being a felon in possession of a firearm. Senior District Court Judge Fred Van Sickle determined that, based on Vickers' lengthy criminal history which includes convictions for violent crimes and drug trafficking, he is an armed career criminal. Accordingly, Judge Van Sickle sentenced Vickers to a 188 month term of imprisonment, to be followed by a 5 year term of court supervision upon release from Federal prison. The Defendant has been in custody since his arrest on January 19, 2012.
On October 4, 2012, Vickers pleaded guilty to the charge of being a previously convicted felon in possession of a firearm. According to information disclosed during the proceedings in this case, on January 19, 2012, the Vickers armed himself with a shotgun and entered a convenience store located in Yakima, Washington. Vickers attempted to rob the business owner. The business owner grabbed the shotgun during the attempted robbery. The shotgun discharged during the struggle. Vickers then ran out of the store. The business owner chased Vickers and fought with him in the snow. During the struggle, the business owner was able to take possession of the shotgun. Vickers then attempted to obtain a ride from citizens driving in the area. Officers with the Yakima Police Department were called to the scene and quickly arrested him. Vickers claimed that he had been forced to commit the robbery to pay for a drug debt.
Michael C. Ormsby said, "The United States Attorney's Office, the Yakima Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, are committed to working in partnership to protect communities from convicted felons who possess firearms and endanger the lives of citizens within the Eastern District of Washington." Mr. Ormsby emphasized that overriding personal safety concerns dictate that private citizens should seek assistance from law enforcement officials rather than confronting and engaging armed criminals.
This matter was investigated by the Yakima Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Tom Hanlon, an Assistant United States Attorney for the Eastern District of Washington.
12-CR-02036-FVS-1
Apple Valley Woman Charged with Defrauding Home Health Care Company, MedicaRead the Press Release
MINNEAPOLIS—Yesterday in federal court, an Apple Valley woman was charged with defrauding both her employer and Medica. On January 9, 2012, Lori Jo Mueller, age 48, was charged via an Information with one count of wire fraud and one count of health care fraud.
Allegedly, from June of 2006 through June of 2012, Mueller embezzled approximately $840,000 from Edelweiss Home Health Care and used the funds for her personal use. Mueller began working for Edelweiss, located in Osseo, in 2002, and was promoted to the position of vice president of operations. In that capacity, Mueller was responsible for the review and payment of corporate invoices, bookkeeping, and other financial matters. Mueller allegedly used her access to the corporate checking account to issue payments from corporate accounts to herself. Also, Mueller allegedly concealed her actions from the company owners and made misrepresentations concerning the company’s financial state.
In addition, from March of 2010 through June of 2012, Mueller allegedly defrauded Medica, a health care benefit program. She purportedly submitted claims to various insurers, seeking reimbursement for services provided by Edelweiss nursing staff. In some instances, Mueller double-billed by submitting claims for the same services to multiple insurance providers. For example, Mueller allegedly billed both Minnesota Medicaid and Medica for services provided to one client. The double-billing resulted in a double-payment to Edelweiss with Medicaid being the proper payer and Medica being the overpayer. As a result of this criminal behavior, Mueller obtained for Edelweiss more than $631,000 in fraudulent proceeds. Medica is a non-profit corporation that provides health insurance products to families and individuals.
If convicted in this case, Mueller faces a potential maximum penalty of 30 years in federal prison on the wire fraud count and ten years on the health care fraud count. All sentences will be determined by a federal district court judge.
This case is the result of an investigation by the Federal Bureau of Investigation and the United States Department of Health and Human Services-Office of Inspector General (“DHHS-OIG”). It is being prosecuted by Assistant U.S. Attorney David M. Genrich.
The U.S. Attorney’s Office participates in a task force with the Medicaid Fraud Control Unit at the Minnesota Attorney General’s Office that focuses on home health care fraud trends. The task force includes the DHHS-OIG, the FBI, the Internal Revenue Service, and other federal, state, and local law enforcement partners.
As a result of federal convictions for health care fraud, defendants are excluded from participating in federal health benefit programs, including Medicare and Medicaid. Exclusion determinations are made by the U.S. Department of Health and Human Services. Nationwide, more than 3,000 individuals were excluded from program participation in Fiscal Year 2010 based upon criminal convictions or patient abuse or neglect, license revocations, or other factors.
For more information, visit http://www.stopmedicarefraud.gov/
A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.Altus Man to Serve Two Years in Prison for Illegal Possession of Claymore MineRead the Press Release
Oklahoma City, Oklahoma – DALE HOWARD BRUNO, 59, from Altus, Oklahoma, was sentenced by United States District Judge David L. Russell to serve 24 months in federal for illegal possession of a functional Claymore mine, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to Court records and proceedings, Bruno was an Army instructor at Fort Sill, Oklahoma, and stole a Claymore mine while working at Fort Sill. Following a tip that Bruno had a Claymore mine, law enforcement discovered Bruno to be in possession of a fully functional Claymore mine on October 28, 2011. A Claymore mine is a military weapon containing approximately1.5 pounds of C4 plastic explosive and embedded approximately 700 steel ball bearings. It is engineered as a directional antipersonnel weapon to inflict death or serious bodily injury over a large area.
Bruno pled guilty on September 24, 2012, to unlawful possession of the Claymore mine. At sentencing, Judge Russell ordered that Bruno serve 24 months in prison followed by two years of supervised release.
This case was the result of an investigation conducted by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Ed Kumiega.
Alabama Man Pleads Guilty to Stolen Identity Refund FraudRead the Press Release
Kenneth Jerome Blackmon Jr., a resident of Montgomery, Ala., pleaded guilty today to aggravated identity theft and access device fraud, the Justice Department and the Internal Revenue Service (IRS) announced today.
According to court documents, Blackmon was involved in a scheme to use stolen identities to file false federal income tax returns with the IRS. Blackmon admitted to acquiring identity information, to using that information on false tax returns, and to directing fraudulent tax refunds onto debit cards. He admitted to possessing at least fifteen Social Security numbers for the purpose of obtaining fraudulent tax refunds from the IRS.
Blackmon faces a maximum potential sentence of 10 years in prison for the access device fraud count and a mandatory two-year sentence for the aggravated identity theft count. He is also subject to fines and mandatory restitution.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Justin Gelfand and Jason Poole of the Justice Department’s Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax .
Additional Charges in Drug InvestigationRead the Press Release
United States Attorney Brendan V. Johnson announced that three additional people have been charged in an indictment involving controlled substance analogues. A federal grand jury handed down the indictment on January 8, 2013.
Lamonte Christopher Johnson, Jr., aka "Chris," age 43, and Renee Sue Johnson, age 40, both of Canton, were each charged with one count of Conspiracy to Distribute a Controlled Substance Analogue and one count of Money Laundering. Edward Lewis Vandeuren, aka “Edward Lewis Vandeuren, III,” age 62, of Sioux Falls, is charged with one count of Conspiracy to Distribute a Controlled Substance Analogue.
All three of the defendants appeared before US Magistrate Judge John E. Simko on January 9, 2013, and pled not guilty to the indictment. The maximum penalty upon conviction of the drug charge is 20 years in prison and a $1,000,000 fine. The maximum penalty on the money laundering charge is 10 years in prison and a $250,000 fine. The charges are merely accusations, and Lamonte Christopher Johnson, Jr., Renee Johnson, and Vandeuren are all presumed innocent until and unless proven guilty.
The indictment relates to an ongoing investigation involving the Roll With It stores in Sioux Falls.
Previously indicted individuals in this investigation, Corey Brandon Morrison, Gwen Arlene Pike, and Andrea Jean Anderson, all from Sioux Falls, and Thomas Patrick Harms and Cynthia Renee Harms, both of Luverne, Minnesota, made their initial court appearance on October 12, 2012. They all pled not guilty and are awaiting trial.
The investigation is being conducted by the United States Drug Enforcement Administration, the Internal Revenue Service, and the Sioux Falls Area Drug Task Force. United States Attorney Brendan Johnson and Assistant US Attorney John E. Haak are prosecuting the case. All defendants were released on conditions pending trial. A trial date has not yet been set.
Additional Charges in Drug InvestigationRead the Press Release
United States Attorney Brendan V. Johnson announced that three additional people have been charged in an indictment involving controlled substance analogues. A federal grand jury handed down the indictment on January 8, 2013.
Lamonte Christopher Johnson, Jr., aka "Chris," age 43, and Renee Sue Johnson, age 40, both of Canton, were each charged with one count of Conspiracy to Distribute a Controlled Substance Analogue and one count of Money Laundering. Edward Lewis Vandeuren, aka “Edward Lewis Vandeuren, III,” age 62, of Sioux Falls, is charged with one count of Conspiracy to Distribute a Controlled Substance Analogue.
All three of the defendants appeared before US Magistrate Judge John E. Simko on January 9, 2013, and pled not guilty to the indictment. The maximum penalty upon conviction of the drug charge is 20 years in prison and a $1,000,000 fine. The maximum penalty on the money laundering charge is 10 years in prison and a $250,000 fine. The charges are merely accusations, and Lamonte Christopher Johnson, Jr., Renee Johnson, and Vandeuren are all presumed innocent until and unless proven guilty.
The indictment relates to an ongoing investigation involving the Roll With It stores in Sioux Falls.
Previously indicted individuals in this investigation, Corey Brandon Morrison, Gwen Arlene Pike, and Andrea Jean Anderson, all from Sioux Falls, and Thomas Patrick Harms and Cynthia Renee Harms, both of Luverne, Minnesota, made their initial court appearance on October 12, 2012. They all pled not guilty and are awaiting trial.
The investigation is being conducted by the United States Drug Enforcement Administration, the Internal Revenue Service, and the Sioux Falls Area Drug Task Force. United States Attorney Brendan Johnson and Assistant US Attorney John E. Haak are prosecuting the case. All defendants were released on conditions pending trial. A trial date has not yet been set.
"Bank Bag Bandit" Pleads Guilty to Multiple Bank RobberiesRead the Press Release
Tampa, FL - David Dwinell (52, Palm Harbor) today pleaded guilty to bank robbery and using a firearm in furtherance of a crime of violence. Dwinell faces a maximum penalty of life in federal prison.
According to the plea agreement, Dwinell committed five armed bank robberies in Pasco, Hillsborough and Hernando counties. While committing the crimes, Dwinell would enter the banks wearing a dark colored hat, sunglasses, mask over his face, and a dark colored jacket. He carried a blue zippered bank bag and a silver revolver. During the robberies, Dwinell brandished the firearm as he approached the teller counters and demanded money. Several of the victims observed Dwinell fleeing the robberies in a gray Ford F150 pick-up truck.
During a search of Dwinell's residence, agents located a loaded silver .38 revolver, a black baseball hat, latex gloves, a beige mask (panty hose), black zip-up jacket, a blue bank bag (which contained the latex gloves and panty hose), and a second blue zippered bank bag. Dwinell told law enforcement that these were the items he used in the bank robberies. Agents also located 100 single one dollar bills, 50 ten dollar bills, and money still wrapped in bank bands. An additional $6,762.00 was located in Dwinell's home office. During a search of the Ford F-150 pick-up truck used by Dwinell in the bank robberies, officers located 62 five dollar bills under the steering column and one black glove. Dwinell admitted that he committed the five armed robberies and stated that he robbed the banks because his house was in foreclosure and he had previously owed money to the Internal Revenue Service.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Stacie B. Harris and Colleen Murphy Davis.
9 January 2013
Virginia Charter Fishing Boat Captain Pleads Guilty to Felony Lacey Act ViolationRead the Press Release
WASHINGTON – Jeffery S. Adams, 41, of Hudgins, Va., and his corporation Adams Fishing Adventures Inc. pleaded guilty today to trafficking in illegally-harvested striped bass, in violation of the Lacey Act. Among other things, the Lacey Act makes it unlawful for any person to import, export, transport, sell, receive, acquire or purchase any fish and wildlife taken, possessed, transported or sold in violation of any law or regulation of the United States, or to attempt to do so. Under the Lacey Act, it is a “sale” of fish or wildlife for any person, for money or other consideration, to offer or provide guiding, outfitting, or other services.
Ignacia S. Moreno, Assistant Attorney General for the U.S. Department of Justice’s Environment and Natural Resources Division, and Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, made the announcement after the plea was accepted by U.S. District Judge Mark S. Davis.
Adams and Adams Fishing Adventures were indicted on Nov. 8, 2012, by a federal grand jury on charges of conspiracy, Lacey Act violations and false statements. Adams faces a maximum penalty of five years in prison and a $250,000 fine, as well as forfeiture of the fishing vessel used during the commission of the crimes. Adams Fishing Adventures Inc. faces a maximum fine of $500,000, as well as forfeiture of the fishing vessels used during the commission of the crimes. Sentencing is set for April 18, 2013.
In a statement of facts filed with his plea agreement, Adams and Adams Fishing Adventures admitted that they sold a charter striped bass fishing trip on Jan. 19, 2010, for $800. As part of that charter fishing trip, Adams knowingly took his charter clients into the exclusive economic zone (EEZ) to harvest striped bass, even though Adams knew that it was a violation of federal law to harvest striped bass inside the EEZ. Adams’ clients illegally harvested 10 striped bass within the EEZ on Jan. 19, 2010, and Adams then transported the illegally harvested striped bass back to Rudee Inlet in Virginia Beach, Va., where the sale of Adams’ charter fishing services was finalized.
This case was investigated by the National Oceanic and Atmospheric Administration, Fisheries, Office for Law Enforcement, and the Virginia Marine Police with assistance from the Federal Communications Commission Enforcement Bureau, Norfolk, Va. Office. Trial Attorney James B. Nelson of the Department of Justice’s Environmental Crimes Section of the Environment and Natural Resources Division and Assistant U.S. Attorney Stephen W. Haynie from the Eastern District of Virginia are prosecuting the case on behalf of the United States.
Virginia Charter Fishing Boat Captain Pleads Guilty to Felony Lacey Act ViolationRead the Press Release
NORFOLK, Va. – Jeffery S. Adams, 41, of Hudgins, Va., and his corporation Adams Fishing Adventures Inc. pleaded guilty today to trafficking in illegally-harvested striped bass, in violation of the Lacey Act. Among other things, the Lacey Act makes it unlawful for any person to import, export, transport, sell, receive, acquire or purchase any fish and wildlife taken, possessed, transported or sold in violation of any law or regulation of the United States, or to attempt to do so. Under the Lacey Act, it is a “sale” of fish or wildlife for any person, for money or other consideration, to offer or provide guiding, outfitting, or other services.
Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, and Ignacia S. Moreno, Assistant Attorney General for the U.S. Department of Justice’s Environment and Natural Resources Division, made the announcement after the plea was accepted by U.S. District Judge Mark S. Davis.
Adams and Adams Fishing Adventures were indicted on Nov. 8, 2012, by a federal grand jury on charges of conspiracy, Lacey Act violations and false statements. Adams faces a maximum penalty of five years in prison and a $250,000 fine, as well as forfeiture of the fishing vessel used during the commission of the crimes. Adams Fishing Adventures Inc. faces a maximum fine of $500,000, as well as forfeiture of the fishing vessels used during the commission of the crimes. Sentencing is set for April 18, 2013.
In a statement of facts filed with his plea agreement, Adams and Adams Fishing Adventures admitted that they sold a charter striped bass fishing trip on Jan. 19, 2010, for $800. As part of that charter fishing trip, Adams knowingly took his charter clients into the exclusive economic zone (EEZ) to harvest striped bass, even though Adams knew that it was a violation of federal law to harvest striped bass inside the EEZ. Adams’ clients illegally harvested 10 striped bass within the EEZ on Jan. 19, 2010, and Adams then transported the illegally harvested striped bass back to Rudee Inlet in Virginia Beach, Va., where the sale of Adams’ charter fishing services was finalized.
This case was investigated by the National Oceanic and Atmospheric Administration, Fisheries, Office for Law Enforcement, and the Virginia Marine Police with assistance from the Federal Communications Commission Enforcement Bureau, Norfolk, Va. Office. Trial Attorney James B. Nelson of the Department of Justice’s Environmental Crimes Section of the Environment and Natural Resources Division and Assistant U.S. Attorney Stephen W. Haynie from the Eastern District of Virginia are prosecuting the case on behalf of the United States.Verla Ann Still Smoking Pleads Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on January 7, 2013, before U.S. District Judge Sam E. Haddon, VERLA ANN STILL SMOKING, a 41-year-old resident of Browning, appeared for sentencing. STILL SMOKING was sentenced to a term of:
- Prison: 30 months
- Special Assessment: $200.00
- Supervised Release: 2 years
STILL SMOKING was sentenced in connection with her guilty plea to involuntary manslaughter and making false statements.
In an Offer of Proof filed by Assistant U.S. Attorney Joseph E. Thaggard, the government stated it would have proved at trial the following:
An individual identified here as C.G. would have testified that she lived at STILL SMOKING's residence in Browning for a period including March 18-19, 2011. She would have testified that the victim, identified here as R.W., was at STILL SMOKING's residence on March 18-19, 2011. At about 8:30 p.m. on March 19, 2011, the victim became unresponsive while sleeping on a couch at STILL SMOKING's residence and was taken by ambulance to the hospital in Browning where the victim was ultimately pronounced dead at the hospital.
A forensic pathologist and deputy medical examiner performed an autopsy on the victim's' body and stated that the victim died as the result of "mixed toxicity" stemming from her ingestion of drugs. Oxycodone was found in a lethal level in the victim's blood. Gabapentin was found at a high, though not lethal, level in the victim's blood. Dextromethorphan, an over-the-counter cough suppressant, was also found in the victim's blood. The pathologist would have testified that the Gabapentin and Dextromethorphan could have contributed to the lethality of the Oxycodone, but that the Oxycodone was a necessary component in the cause of the victim's death.
On March 19, 2011, STILL SMOKING was interviewed about the circumstances of the victim's death. STILL SMOKING stated that the victim used drugs, including methamphetamine, cocaine, marijuana, and pain pills. STILL SMOKING also stated that the victim had overdosed on cocaine six to eight weeks earlier and was hospitalized.
STILL SMOKING also stated that she had planned to have her prescriptions filled on March 18, 2011, but was unable to do so and that she planned to have her prescriptions filled on March 20, 2011. STILL SMOKING advised that she had her son store her drugs in a safe in his room.
Law enforcement later determined that STILL SMOKING's claim during the March 19, 2011 interview that she had not filled her prescriptions on March 18, 2011, was false. The Kalispell pharmacy confirmed that STILL SMOKING's prescriptions for 210 Oxycodone and 60 Clomazepam were, in fact, filled on March 18, 2011.
In addition, the pharmacy confirmed that on March 16, 2011, STILL SMOKING picked up 120 Gabapentin, a prescription, non-controlled substance.
On March 29, 2011, STILL SMOKING was interviewed again and at this time stated that she had given her drugs to the victim for safekeeping.
Another witness, H.S., would have testified that she was present at STILL SMOKING's home on March 19, 2011. The witness stated that she observed STILL SMOKING give Oxycodone and Gabapentin to the victim for consumption.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that STILL SMOKING will likely serve all of the time imposed by the court. In the federal system, STILL SMOKING does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Tyrone, Pa., Man Admits Possessing Pornographic Images and Videos of ChildrenRead the Press Release
JOHNSTOWN, Pa. - A resident of Tyrone, Pa., pleaded guilty in federal court to a charge of possession of child pornography, United States Attorney David J. Hickton announced today.
Michael L. Miller, 45, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on Nov. 1, 2006, Miller knowingly possessed videos and images as computer graphic files containing images of child pornography, which had been shipped and transported in interstate or foreign commerce by means of a computer.
Judge Gibson scheduled sentencing for June 6, 2013, at 9:30 a.m. The law provides for a maximum of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
Pennsylvania State Police Troop G-Computer Crime Unit, Hollidaysburg, Pa. conducted the investigation that led to the prosecution of Miller.
This case is being brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse, led by the United States Attorney's Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as identify and rescue victims.
Triggerman Receives Life Sentence for Contract MurderRead the Press Release
Tampa, Florida - U.S. District Judge Steven D. Merryday today sentenced Luis Angel Lopez (25, Hillsborough County) to life in federal prison for the June 7, 2007, contract murder of Thomas Lee Sehorne of Lithia, Florida. As part of his sentence, the court also entered a money judgment in the amount of $1,043,517.99. This amount represents the life insurance policies paid after the death of Mr. Sehorne. Lopez was convicted by a federal jury on August 3, 2012.
According to court documents, Thomas Lee Sehorne was found shot to death outside his home in Eastern Hillsborough County, on the morning of June 7, 2007. Later that day his widow, Cristie Fay Sehorne, and their two minor children moved in with Jerry Bottorff. A short time later, Cristie Sehorne began attempting to collect on Mr. Sehorne’s life insurance policies. A settlement was ultimately reached regarding the insurance proceeds, and Cristie Sehorne and Jerry Bottorff were married in December 2008.
On May 23, 2011, the Bottorffs and Lopez were arrested. They were each charged in a three-count indictment with the use of interstate commerce facilities in the commission of a murder-for-hire, conspiracy, and aiding and abetting the carrying of a firearm in relation to a crime of violence resulting in death.
On July 9, 2012, Cristie and Jerry Bottorff pleaded guilty to the charges, and later testified at the trial of Luis Angel Lopez, the hitman. The Bottorffs testified that they solicited a friend, Mike Garcia, to find someone to murder Mr. Sehorne, with a promise to pay $60,000.00, once they obtained Mr. Sehorne’s life insurance proceeds. On October 22, 2012, Cristie Fay Bottorff and Jerry Alan Bottorff were each sentenced to life in federal prison.
Michael Garcia was arrested in 2008 and immediately cooperated regarding the murder. During Lopez’s trial, Garcia testified that, in the early morning hours of June 7, 2007, he and Lopez traveled to Mr. Sehorne’s residence on Lithia Pinecrest Road, where Lopez waited for Mr. Sehorne to return home. When Mr. Sehorne exited his automobile, Lopez approached him and killed him with a gunshot to the chest and head. Cristie Sehorne (Bottorff) contacted the Hillsborough County Sheriff’s Office the following morning to report the murder.
Garcia previously pleaded guilty for his role in this case. His sentencing hearing is scheduled for January 11, 2013.
This case was investigated by the Hillsborough County Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney's Walter E. Furr and Thomas Palermo.
Treasure Valley Building Contractor Sentenced for Wire FraudRead the Press Release
Owner of Quality Tile and Roofing, Inc. Agrees to Forfeit $150,000; also Fined $20,000
BOISE – Patrick J. Large, 62, of Meridian, Idaho, the owner of Quality Tile and Roofing, Inc., was sentenced yesterday in federal court to two years’ probation and ordered to pay a $20,000 fine, U.S. Attorney Wendy J. Olson announced. Large pleaded guilty on September 18, 2012, to a superseding information charging him with one count of wire fraud. Chief U.S. District Judge B. Lynn Winmill ordered Large to serve eight months of his probation sentence on home detention, perform 80 hours of community service, and forfeit $150,000.
According to court documents, Large orchestrated a scheme to defraud federal agencies by falsely representing that the company had two employees residing in a HUB Zone. The HUBZone Program encourages economic development in historically underutilized business zones through the establishment of preferences in federal contracting opportunities. Based upon this false representation, the government awarded a contract to a company controlled by Large that it was not otherwise entitled to receive.
According to the plea agreement, on July 27, 2005, Large submitted an application to the U.S. Small Business Administration (SBA) that represented that the principal place of business of McDonald Roofing and Construction, Inc. (MRC) was located in Emmett, Idaho, and that it had two employees at this location. Large made these representations in submissions to the government. By doing so, MRC was able to obtain a contract awarded by the government for qualified HUBZone entities. Large admitted that the representations were false because the business did not have at least two employees residing in the HUBZone. In June 2007, the United States Department of Interior (DO I) awarded a $218,241 contract to MRC for seismic mitigation work to be performed at the National Interagency Fire Center (NIFC) in Boise. DOl awarded MRC the contract on the basis that it was a HUBZone qualified entity. On December 21, 2007, MRC received a payment from the government of approximately $219,287.
In related cases, Construction Service Corporation, Inc. (CSC) and McDonald Roofing and Construction, Inc., of Boise, were sentenced last year to three years’ probation. CSC was fined $65,000 for wire fraud and making a false statement. McDonald Roofing and Construction was fined $5,000 for fraud related to government contracting.
“The successful investigation and prosecution of Mr. Large, CSC, and McDonald Roofing and Construction, Inc., are excellent examples of the cooperative working relationship between the U.S. Attorney’s Office and its federal agency partners,” said Olson. “We will continue to work together to ensure those who fraudulently obtain government contracts will not go unpunished.”
“The consequence to those who misrepresent themselves to claim eligibility for preference in federal contracting opportunities is evident by today’s announcement,” said SBA Inspector General Peggy E. Gustafson. “Mr. Large's fraud involved a SBA government contracting program that encourages economic development in historically underutilized business zones, and I am pleased that he has accepted responsibility for his actions. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their commitment to seek justice on behalf of the American taxpayer.”
“Rest assured those who find ways to fraudulently benefit from government programs will be brought to justice,” said Lilia E. Ruiz, IRS Criminal Investigation Acting Special Agent in Charge for the State of Idaho. “IRS Criminal Investigation will work diligently with our law enforcement partners to combat such fraud.”
The case was a joint investigation by the Office of Inspector General for the Department of Veterans Affairs, the U.S. Small Business Administration, General Services Administration, Department of Interior, Department of Agriculture, as well as the Defense Criminal Investigative Service, the U.S. Army Criminal Investigative Command, the Air Force Office of Special Investigation, and Internal Revenue Service-Criminal Investigation.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Tilicia Alexis Elliott Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on January 9, 2013, before Senior U.S. District Judge Jack D. Shanstrom, TILICIA ALEXIS ELLIOTT, a 24-year-old resident of Billings, was sentenced to a term of:
- Prison: 120 months
- Special Assessment: $200.00
- Supervised Release: 5 years
ELLIOTT was sentenced in connection with her guilty plea to conspiracy to possess methamphetamine with intent to distribute and possession with intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Marcia Hurd, the government stated it would have proved at trial the following:
TILICIA ALEXIS ELLIOTT came to the attention of law enforcement in Billings when she was arrested on a warrant on September 11, 2010, and methamphetamine was found in her purse when she was searched at the jail. ELLIOTT admitted that she had purchased an ounce of methamphetamine that morning for $1700 from a known drug dealer in Billings and that she had already distributed some of the drugs to others. ELLIOTT admitted in approximately March 2010, she began purchasing methamphetamine from multiple sources for redistribution to others. She purchased approximately 4-10 ounces per week, including at least 4 pounds from the dealer mentioned above. She purchased methamphetamine from others, some of whom were already indicted and others that are yet to be indicted.
During debriefs, other users admitted purchasing methamphetamine from ELLIOTT in the past.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that ELLIOTT will likely serve all of the time imposed by the court. In the federal system, ELLIOTT does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation's Big Sky Safe Streets Task Force, which includes the Billings Police Department and the Yellowstone County Sheriff's Office.
Three Area Men Sentenced in Federal Court for Large-Scale Heroin TraffickingRead the Press Release
PITTSBURGH, Pa. - Three residents of Pittsburgh, Pa., have been sentenced in federal court on their convictions of violating federal narcotics trafficking and firearms laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Donetta W. Ambrose sentenced Gary Moorefield, 45, to 300 months (25 years) imprisonment followed by five years supervised release on his conviction of violating federal narcotics and firearms laws;
Dequillarae Zellous, 39, to 120 months (10 years) imprisonment followed by eight years supervised release on his conviction of violating federal narcotics trafficking laws; and
David Michael Jones, 31, to 120 months (10 years) imprisonment followed by eight years supervised release on his conviction of violating federal narcotics trafficking laws.
Moorefield, Zellous and Jones pleaded guilty on Sept. 7, 2012, several days into their anticipated lengthy trial. The investigation resulted in the prosecution of 10 individuals charged with conspiring to distribute large quantities of heroin. According to information presented to the court, the investigation culminated in wiretaps on two cell phones utilized by Gary Moorefield. The wiretaps, conducted from the end of July 2010 through mid-September 2010, confirmed that Moorefield obtained kilogram quantities of heroin from a supplier in the New York/New Jersey area approximately one to two times per week through with the assistance of a courier. Moorefield would supply his courier with large sums of U.S. currency (often in excess of $100,000 per trip), and the courier would travel to Newark, New Jersey and/or New York City to obtain the heroin from the supplier.
The courier would then drive back to the Pittsburgh area and deliver the large quantities of heroin directly to Moorefield at either Moorefield’s residence in Penn Hills, Pa., or at his penthouse apartment located in Monroeville, Pa.
After receiving the heroin from his courier, Moorefield would contact his primary drug distributors, including Dequillarae Zellous and David Michael Jones, and arrange to meet the distributors to supply them with large quantities of heroin.
On Aug. 11, 2010, federal agents (working in conjunction with the Pennsylvania State Police) seized $103,000 in U.S. currency from Moorefield’s courier who was en route to meet with the heroin source in the New York/New Jersey area.
On Sept. 17, 2010, federal agents in New Jersey seized a bag containing $89,000 in U.S. currency that Moorefield personally delivered to the heroin source in New York City shortly before the seizure.
On Sept. 23, 2010, federal agents executed a search warrant at Moorefield’s residence. Inside the residence agents discovered approximately $72,000 in U.S. currency, a bulletproof vest, and four loaded firearms.
Additionally, trial testimony revealed that on Aug. 29, 2009, officers with the Wilkinsburg Police Department responded to a reported burglary in progress in Wilkinsburg, Pa. Once inside, officers observed an assault rifle and various other items of contraband in the ransacked home, including numerous glassine packets (a/k/a “stamp bags”) commonly used to package heroin for distribution. A subsequent search of the residence resulted in the seizure more than 616 grams of heroin, a pistol, a sawed-off shotgun, two assault rifles, approximately 25,000 empty stamp bags, and other heroin packaging material (e.g., digital scales used to weigh illegal drugs, as well as rubber ink stamps and ink pads used to stamp the stamp bags with a name or logo identifying a particular batch of heroin). Testimony revealed that the residence was used as a "stash house" by Moorefield, and that between $500,000 to $1,000,000 was stolen from the residence during the burglary.
Assistant United States Attorneys Charles A. Eberle and Troy Rivetti prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) for the investigation leading to the successful prosecution of Moorefield, Zellous and Jones. The task force was headed by the Drug Enforcement Administration (DEA) and was comprised of members drawn from the Baldwin Borough Police, the Allegheny County Sheriff's Office, the Munhall Police, the Pittsburgh Bureau of Police, the Pennsylvania State Police, the Duquesne Police, the West Homestead Police, the Allegheny County Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistance in the investigation was provided by the Penn Hills Police, the Monroeville Police, the McKees Rocks Police, and the Wilkinsburg Police Department.
Tammy Copas Sentenced to 121 Months in Prison for Armed RobberiesRead the Press Release
GREENEVILLE, Tenn. - Tammy Copas, 40, of Johnson City, Tenn., was sentenced to serve a total of 121 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge. Upon release from prison she will be subject to three years supervised release under the supervision of the U.S. Probation Office.
Copas pleaded guilty on May 14, 2012, to robberies by force of the Discount Tobacco Outlet store in Elizabethton and the La Perla restaurant in Johnson City, both of which occurred in January 2012. Copas also pleaded guilty to brandishing a firearm in the commission of the La Perla robbery. She was sentenced to 37 months for each of the robberies, with the terms to run concurrently and 84 months for brandishing the firearm, to run consecutively to the robbery sentences. Federal law mandates a seven year minimum mandatory sentence for brandishing a firearm in the commission of a violent offense.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Lopez included the Johnson City Police Department, Elizabethton Police Department and Federal Bureau of Investigation. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Smith County Residents Guilty of Methamphetamine ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – Two Smith County, Texas residents have pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Clinton Daniel McCaa, 32, of Whitehouse, Texas, pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine today before U.S. Magistrate Judge Judith K. Guthrie.
Tara McDonald, 40, of Tyler, Texas, pleaded guilty to maintaining a place for the distribution and use of methamphetamine today before Judge Guthrie.
According to information presented in court, during 2011, McCaa acquired methamphetamine from Clinton Squires of Terrell, Texas, which McCaa then distributed to multiple persons in Tyler, Texas. During this time, McCaa lived with McDonald at her residence on Meadow Creek Drive in Tyler, Texas. McDonald admitted that she knew McCaa was involved in the distribution and use of methamphetamine. Furthermore, McDonald allowed McCaa to store methamphetamine and other substances at her residence.
A federal indictment was returned on May 2, 2012, charging McDonald and McCaa with federal drug crimes.
McCaa faces up to 40 years in federal prison. McDonald faces up to 20 years in federal prison. Sentencing dates have not been set.
This case is being investigated by the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
###Smith County Man Sentenced for Wire FraudRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 42-year-old Tyler, Texas man has been sentenced to federal prison for federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
James Henry Hardee pleaded guilty on Oct. 11, 2012, to wire fraud and was sentenced to 30 months in federal prison today by U.S. District Judge Leonard E. Davis.
According to information presented in court, from 2005 to 2008, Hardee, who was serving as the managing member of an investment group based in Tyler, embezzled investor funds and used the money for personal purposes such as mortgage payments, vehicles, and credit card payments. The investment group was comprised of multiple investors from Georgia and was formed to open and operate multiple fast-food restaurants in Arkansas. Hardee concealed his misappropriation of funds by falsifying financial statements, including those sent to investors by electronic mail on a monthly basis.
A restitution hearing will be held at a later date.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney L. Frank Coan, Jr.
Smith County Man Guilty of Attempted ArsonRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 54-year-old Tyler, Texas, building contractor has pleaded guilty to federal charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Daniel Kubisty pleaded guilty to attempted arson today before U.S. Magistrate Judge Judith Guthrie.
According to information presented in court, on Mar. 19, 2012, Kubisty accepted $3,000 from Edward Jacobs to burn down a building located at 3322 E. Fifth Street in Tyler that was being used by the “Add-Life Recovery Center” methadone clinic. Kubisty and Jacobs conspired to burn down the building in order to gain a competitive advantage for the “Methadone Clinic of East Texas” which was owned by Jacobs and also had an office in Tyler, Texas. On Mar. 19, 2012 Kubisty was arrested in Tyler by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and was found to have a gasoline can, with a wick saturated in gasoline protruding from its neck, in the back of his pickup.
Kubisty faces from five to 20 years in federal prison. A sentencing date has not been set.
After Kubisty’s arrest, Jacobs feared Kubisty would testify against him and on June 1, 2012, he arranged a meeting with a man he believed he could hire to murder Kubisty in order to prevent Kubisty’s testimony. During the meeting, Jacobs offered to pay the hit-man $12,000.00 for Kubisty’s murder. ATF was monitoring the meeting and arrested Jacobs at the scene. On Dec. 18, 2012 Jacobs pleaded guilty to attempted arson and solicitation of murder for hire. He faces up to 20 years in federal prison for each charge. A sentencing date has not been set.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.
###Sioux Falls Man Sentenced in Passport Fraud CaseRead the Press Release
US Attorney Brendan V. Johnson announced that a Sioux Falls man charged with passport fraud and misuse of a Social Security number was sentenced on January 4, 2013, by US District Judge Karen E. Schreier. Mark Steven Shepard, a/k/a Kellynn Daleigh Kennedy, a/k/a Kellynn Dalemay Kennedy, a/k/a Mark Oliver Gallaher, age 56, was sentenced to 12 months custody and one year of supervised release on each count, to be served concurrently.
On October 3, 2011, Shepard applied for and received a South Dakota driver's license in the name of Kellynn Daleigh Kennedy, using a United States passport in that name as proof of his identity. He had obtained that passport by fraudulently claiming the Social Security number of another person as his own.
The investigation was conducted by the Department of State - Diplomatic Security Service, the Department of Homeland Security - Document Benefit Task Force of Minneapolis, MN, and the Social Security Administration. Assistant US Attorney Connie Larson prosecuted the case.
Shepard was immediately turned over to the custody of the US Marshal.
Seven Arrested in Federal Drug Trafficking, Money Laundering ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – A three-count indictment was partially unsealed following the arrests of several Corpus Christi residents and their appearances in federal court on various drug trafficking and money laundering charges, United States Attorney Kenneth Magidson announced today.
Rocky Bazaldua aka “Rock,” 31; David Pete Dominguez aka “Buda,” 30; Juliann Gutierrez, 24, and Jose Fidel Guajardo aka “Garfield,” 40, made their appearance in federal court yesterday and are set for an arraignment and detention hearing on Friday, Jan. 11, 2013, at 11:00 a.m. Ignacio Pena aka “Nacho,” 44; Manuel Pena aka “Super,” 47; and Raul Leal Martinez aka “Indio” aka “Wahoo,” 36, appeared today and are set for their arraignment and detention hearing Monday, Jan. 14, at 10:00.
The indictment remains sealed as to those charged but not yet taken into custody.
The defendants are charged with conspiring from Dec. 1, 2008, to Dec. 12, 2012, to possess with intent to distribute more than 50 grams of methamphetamine. A second count alleges Manuel Pena, Ignacio Pena, Martinez, Guajardo and Bazaldua conspired during that same time period to possess with intent to distribute more than five kilograms of cocaine. If convicted, the defendants face a minimum of 10 years up to life in prison as well as a maximum $10 million fine.
Manuel Pena, Martinez and Guajardo are also charged with conspiring to launder the proceeds of distributing controlled substances. If convicted of that offense, they face another 20-year term of imprisonment and a possible $500,000 fine.
The government also gave notice in the indictment of the intention to seek forfeiture of five properties owned by Manuel Pena, Martinez or Guajardo.
This case was investigated by the Organized Crime Drug Enforcement Task Force which included Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, Texas Department of Public Safety, the Nueces and Kleberg County Sheriff’s Offices and the Corpus Christi, Aransas Pass and Portland Police Departments. The case is being prosecuted by Assistant United States Attorney Michael Hess.
Ryan James Parker 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 2, 2013, before U.S. District Judge Sam E. Haddon, RYAN JAMES PARKER, a 26-year-old resident of Box Elder and an enrolled member of the Rocky Boy's Indian Reservation, pled guilty to involuntary manslaughter. Sentencing has been set for April 1, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Danna R. Jackson, the government stated it would have proved at trial the following:
On June 14, 2012, near Box Elder on the Rocky Boy's Indian Reservation, PARKER caused a collision between the vehicle he was driving and another vehicle in which an individual died.
PARKER was intoxicated at the time of the collision. According to tribal law enforcement, PARKER was arrested immediately following the collision and given a Breathalyzer test. The result showed his blood alcohol content was .25. The Airbag Control Module report indicated that PARKER was driving 91 mph at -5 seconds prior to the collision and 63 mph at -2 seconds prior to the collision. The posted speed limit on this area was 35 miles per hour.
PARKER faces possible penalties of 8 years in prison, a $250,000 fine and lifetime supervision.
The investigation was conducted by a cooperative effort between the Montana Highway Patrol, the Federal Bureau of Investigation, and the Chippewa Cree Law Enforcement.
Rudolph Lee Shane, Sr. 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 8, 2013, before Chief U.S. District Judge Richard F. Cebull, RUDOLPH LEE SHANE, SR., a 64-year-old resident of Crow Agency, pled guilty to tampering with a victim. Sentencing has been set for April 10, 2013. He is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Marcia K. Hurd, the government stated it would have proved at trial the following:
On February 23, 2012, the Federal Bureau of Investigation received a report alleging that SHANE had harassed a victim in a pending criminal case in federal court.
On February 21, 2012, SHANE had contacted the victim who described the meeting as intimidating and stated she was concerned for her safety. She believed he wanted her to "drop charges" or change her story. The victim did not initially know who he was and had no idea how SHANE knew how to find her.
On February 22, SHANE called the victim's cell phone twice and left a message. In addition, SHANE's daughter contacted the victim at the request of SHANE. SHANE had also called the victim's mother earlier in the case and asked her to talk to the victim about dropping the charges.
When interviewed, SHANE admitted the contact and indicated he did so because he believed that the victim would take pity on the defendant in the case and "do the right thing." When asked what he was thinking by contacting the victim, SHANE reported that he thought if the victim withdrew her complaint or changed her mind, it would help the defendant.
SHANE faces possible penalties of 20 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by a cooperative effort between the Federal Bureau of Investigation and Bureau of Indian Affairs.
Rosebud Man Pleads Guilty to Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that Benjamin George Murphy, age 65, of Rosebud, South Dakota, appeared before United States District Judge Roberto A. Lange on January 9, 2013, and pled guilty to Abusive Sexual Contact. The maximum penalty upon conviction is 20 years in custody, a $250,000 fine, or both.
The conviction stems from an incident that took place between December 1, 1999, and December 15, 1999, when Murphy had sexual contact with a minor.
The investigation was conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant United States Attorney Tim Maher.
Murphy must report to the custody of the United States Marshal on February 1, 2013.
Romanian Citizen Involved in Phishing Scheme Sentenced to Four Years in Federal PrisonRead the Press Release
January 9, 2013David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, announced that DRAGOS RAZVAN DAVIDESCU, 39, a citizen of Romania, was sentenced today by United States District Judge Janet C. Hall in New Haven to 48 months of imprisonment for participating in an extensive Internet “phishing” scheme.
A phishing scheme uses the Internet to target large numbers of unwary individuals, using fraud and deceit to obtain private personal and financial information such as names, addresses, bank account numbers, credit card numbers and Social Security numbers. Phishing schemes often work by sending out large numbers of counterfeit e-mail messages that are made to appear as if they originated from legitimate banks, financial institutions or other companies. The fraudulent email messages ask individuals to click on a hyperlink contained in the email message, which would take the individual to a counterfeit site on the Internet that purports to be the Internet site of the particular bank, financial institution or company. At the counterfeit Internet site, the individual is then asked to enter information such as the individual’s name, address and credit or debit card numbers.
According to court documents and statements made in court, in June 2005 a resident of Madison, Conn., contacted the FBI in New Haven about a suspicious email that she had received that purported to be from Connecticut-based People’s Bank. The email stated that the recipient’s online banking access profile had been locked and instructed the recipient to click on a link to a web page where the recipient could enter information to “unlock” his or her profile. The web page appeared to originate from People’s Bank, but, as the investigation revealed, was actually hosted on a compromised computer in Minnesota. Any personal identifying and financial information provided by the individual would be sent by email to individuals in Romania, or to a “collector” account, which was an email account used to receive and collect the information obtained through phishing.
DAVIDESCU and others were part of a loose-knit conspiracy of individuals from Craiova, Romania, and neighboring areas that shared files, tools, and stolen information obtained through phishing. The co-conspirators used and shared a number of collector accounts, which contained thousands of email messages that contained credit or debit card numbers, expiration dates, CVV codes, PIN numbers, and other personal identification information such as names, addresses, telephone numbers, dates of birth, and Social Security numbers. The co-conspirators then used the personal and financial information to access bank accounts and lines of credit and to withdraw funds without authorization, often from ATMs in Romania.
The investigation revealed that DAVIDESCU was heavily involved in the phishing conspiracy between 2004 and 2006, and he possessed personal and financial information of more than one thousand victims. He also shared a program for harvesting email addresses with another co-conspirator, and possessed phishing emails and files for creating counterfeit Internet sites.
In addition to People’s Bank, financial institutions and companies targeted by the defendants included Citibank, Capital One, Bank of America, JPMorgan Chase & Co., Comerica Bank, Regions Bank, LaSalle Bank, U.S. Bank, Wells Fargo & Co., eBay and PayPal.
This seven-year investigation has resulted in criminal charges against 19 Romanian citizens. On January 18, 2007, a grand jury in New Haven returned an indictment charging seven defendants with various offenses stemming from this scheme. On November 10, 2010, a grand jury returned a second superseding indictment charging an additional 12 defendants, including DAVIDSECU.
The first three defendants to face charges were extradited from Bulgaria, Croatia and Canada. Following the ratification in 2010 of an amended treaty on mutual legal assistance between Romania and the United States, DAVIDESCU and six other defendants were extradited from Romania. DAVIDESCU was extradited in December 2011.
On October 10, 2012, DAVIDESCU pleaded guilty to one count of conspiracy to commit access device fraud. Eight of the other extradited defendants also have pleaded guilty, and one was convicted after trial in December 2012. Nine defendants are still being sought.
This matter is being investigated by the Federal Bureau of Investigation in New Haven, Conn.
U.S. Attorney Fein and Special Agent in Charge Mertz also acknowledged the critical assistance provided by the U.S. Department of Justice Office of International Affairs, the FBI Legal Attaché in Bucharest, Interpol, the Romanian National Police and the United States Marshals Service.
The case is being prosecuted by Assistant United States Attorneys Edward Chang and Sarala Nagala.
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Tom Carson
(203) 821-3722 [email protected]Robert Randall “Peanut” Webb Sentenced to 90 Months in Prison for Crack Cocaine ConspiracyRead the Press Release
KNOXVILLE, Tenn.- Robert Randall “Peanut” Webb, 62, of Newport, Tenn., was sentenced on Jan. 7, 2013, to serve 90 months in prison by the Honorable R. Leon Jordan, Senior U.S. District Judge. Webb pleaded guilty on May 1, 2012, to conspiring with others to distribute and possess with the intent to distribute 280 grams or more of crack cocaine. Upon his release from prison, he will remain on supervised release for five years. He was also ordered to pay a special assessment of $100.
Information presented at sentencing established that Webb used his home to conduct what was referred to as a convenience store for illegal drugs, from January 2011 until his arrest in February 2012. The court found that he managed the criminal activity which involved five or more participants including: James Robert Brickner, who previously received a sentence of 151 months in prison; Chelsea Shawntel Meigs, who previously received a sentence of 152 months in prison; and Margo Pondetta Gray, who previously received a sentence of 88 months in prison in the same indictment.
Testimony at sentencing established that Webb’s home served as a centralized location for 50+ drug addicts, who purchased prescription pain pills, heroin, crack cocaine, ecstasy, and morphine. Webb and many of his co-defendants injected illegal drugs intravenously during the period of the conspiracy. The illegal drugs were imported from Knoxville, Nashville, pain clinics in Florida and Georgia, and New York.
William C. Killian, U.S. Attorney, noted, “This investigation removed a fairly large scale drug operation from a residential neighborhood in Newport and demonstrated the effectiveness of local, state, and federal law enforcement agencies working together to improve the safety of Tennessee communities.”
The indictment and subsequent conviction of Webb was the result of an investigation conducted by the Tennessee Bureau of Investigation and the Newport Police Department. Assistant U.S. Attorney Helen Smith represented the United States at trial.
Robert Dean Boucher 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 8, 2013, before U.S. District Judge Sam E. Haddon, ROBERT DEAN BOUCHER, a 52-year-old resident of Spokane, pled guilty to conspiracy to possess with intent to distribute methamphetamine. Sentencing has been set for April 8, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
During January 2012, detectives originally became alerted to a methamphetamine distribution ring from Washington state to Great Falls, Montana. In June 2012, detectives learned of an individual, M.E.A., who made repeated trips from Great Falls to Washington to obtain methamphetamine to re-sell in Great Falls. On June 29, 2012, a CI (confidential informant) informed the drug task force that M.E.A. was returning to Great Falls from Washington with methamphetamine. The task force arranged for a controlled drug buy from M.E.A. near the University of Great Falls. The CI purchased methamphetamine. The CI then continued to make numerous controlled drug buys from M.E.A. over the next few days.
Law enforcement located M.E.A.'s car in early July 2012, and the task force tracked this car from Great Falls to Spokane, Washington. The car stayed in Spokane for less than two hours before returning to Great Falls. Law enforcement initiated a traffic stop of the car just outside of Great Falls and they obtained two ounces of methamphetamine. M.E.A., the driver of the car, told law enforcement he had traveled to Spokane to buy methamphetamine from "Bert." He had been supplied by Bert, who was identified as Robert Boucher, since February or March 2012. In total, M.E.A. believed he had obtained and distributed approximately ten ounces of methamphetamine that he received from Boucher.
M.E.A. told law enforcement that Boucher provided him with a GPS system in order for M.E.A. to find Boucher's house in Spokane. Once M.E.A. obtained the methamphetamine from Boucher, M.E.A. would sell the methamphetamine by the gram for $100 around Great Falls. Boucher sold the methamphetamine to M.E.A. for $1400.00 an ounce.
M.E.A. and Boucher also dealt methamphetamine with R.L. and T.L. from T.L.'s house in Great Falls. The methamphetamine dealing continued into the fall of 2012. During the end of October 2012, detectives interviewed additional witnesses. One witness said T.L. was heavily involved in using and dealing methamphetamine. T.L. obtained her methamphetamine from Robert Boucher, and Boucher delivered methamphetamine to T.L. approximately once a week.
The witness further provided that Boucher stored the methamphetamine in the hood and trunk of his car. He then divided the methamphetamine between the sellers who obtained the methamphetamine on credit. Boucher stayed in town at T.L.'s house until the money was collected. T.L. would then repackage the methamphetamine into eight-ball baggies and distribute it to other sellers.
On November 13, 2012, a witness contacted the drug task force and stated R.L. was selling methamphetamine. Law enforcement then arranged controlled drug purchases from R.L.. These purchases occurred at the Royal Motel in Great Falls. The following evening, detectives saw R.L. drive to T.L.'s house, where he stayed for a half hour before again returning to his motel room. A little while later, R.L. and a woman drove to a gas station. R.L. conducted a drug deal in the parking lot. Officers conducted a traffic stop on R.L.'s car shortly thereafter.
After ordering R.L. out of the car, officers found a glass container of methamphetamine in R.L.'s pocket. He spoke with law enforcement and said he had been dealing methamphetamine with T.L. R.L. regularly purchased two eight balls of methamphetamine per week from T.L. R.L. also identified Boucher as one of T.L.'s suppliers and said he delivered methamphetamine to T.L. once per week. Law enforcement seized over 50 grams of pure methamphetamine in this investigation.
BOUCHER faces possible penalties of a minimum 10 years in prison up to life in prison, a $10, 000,000 fine and 5 years supervised release.
The investigation was conducted by the Russell County Drug Task Force.
Richmond Man Pleads Guilty to Stealing Truck with White House Audio and Visual EquipmentRead the Press Release
RICHMOND, Va. – Eric Brown, 49, of Richmond, Va., pleaded guilty today to stealing a truck that contained audio and visual equipment belonging to the office of the President of the United States.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; David E. Beach, Special Agent in Charge of the United States Secret Service’s Washington Field Office; Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office; and D.A. Middleton, Chief of Police for the Henrico County Police Division, made the announcement after the plea was accepted by United States District Judge John A. Gibney.
Brown was indicted on December 4, 2013, and pled guilty today to theft of government property. He faces a maximum penalty of 10 years in prison when he is sentenced on April 11, 2013. As part of the plea agreement, the United States and Brown agree that a sentence of 7 years in prison is the appropriate disposition of this case.
Court documents show that on Oct. 16, 2011, a truck containing audio equipment utilized by the President of the United States during public appearances was reported stolen in Henrico County. The theft occurred at a hotel a few days prior to a speaking engagement that the President was attending in Central Virginia. Video surveillance from the hotel depicted a dark colored SUV driving into the hotel lot. Shortly thereafter, the truck containing the President’s equipment was driven off of the lot. Immediately thereafter, a dark colored SUV followed the truck containing the President’s equipment off of the hotel lot. Court documents revealed the truck contained a laptop computer and other audio visual equipment bearing the Presidential seal. The equipment had a value of approximately $200,000.
In a statement of facts filed with his plea agreement, Brown admitted to telling others about his role in the theft, selling the laptop, and possessing audio visual equipment that still contained the Presidential seal. Law enforcement officers also obtained cell phone site data that showed Brown was in the vicinity of the truck at the time it was stolen. Some of the equipment was recovered from pawn shops in Prince Georges County, Maryland, and in Montgomery County, Maryland.
The investigation was conducted by the U.S. Secret Service, the FBI’s Richmond Field Office, the Henrico County Police Department, and the Chesterfield Police Department. Assistant United States Attorney Roderick C. Young is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Prosecutions Continue in Illegal Entry Cases Involving Those with Prior Criminal RecordsRead the Press Release
MINNEAPOLIS – In the District of Minnesota, separate charges have been filed against two Mexican nationals who allegedly entered the United States illegally after being deported as criminals. Earlier today in federal court in St. Paul, indictments were filed against two individuals for illegal entry after deportation.
Mario Mireles-Flores, age 23, was charged in the first case. His indictment alleges that on December 5, 2012, authorities found him in the U.S. illegally after he had been previously deported. His deportation followed a 2010 McLeod County conviction for escape from custody. Authorities recently identified him as an illegal alien with a criminal record while he was serving a sentence in the Sibley County Jail for providing false information to police. That identification was made through the U.S. Immigration and Customs Enforcement’s (“ICE”) Criminal Alien Program (“CAP”). The goal of that program is to locate criminal aliens incarcerated in federal and state prisons, as well as in local jails, and prevent them from being released into society by having them federally prosecuted for illegally re-entering the U.S.
If convicted of the federal charge now levied against him, Mireles-Flores faces a potential maximum penalty of 20 years in federal prison, followed by deportation. All sentences will be determined by a federal district court judge. This case is the result of an investigation by ICE’s Enforcement and Removal Operations (“ICE ERO”). It is being prosecuted by Assistant U.S. Attorney Lola Velazquez-Aguilu.
In the second case, Sergio Vasquez, age 36, was charged with illegally entering the U.S. following deportation. His indictment alleges that on December 4, 2012, authorities found him in the U.S. after he had been deported in 2008, following a 2003 Pennsylvania conviction for delivery of a controlled substance. On December 3, 2012, Vasquez was arrested by Minneapolis Police for DWI in connection to a personal-injury crash in south Minneapolis. He was identified as an illegal alien with a criminal record via the CAP.
If convicted of the federal charge now filed against him, Vasquez faces a potential maximum penalty of 20 years in federal prison, followed by deportation. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the Minneapolis Police Department and ICE ERO. It is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.
In some instances, federal prosecution will occur only after the individual is prosecuted for the recent underlying offense. Both men will remain in custody until their current federal cases are resolved. To learn more about the CAP, visit www.ice.gov/criminal-alien-program/An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Pocatello Man Arrested on Federal and State WarrantsRead the Press Release
POCATELLO – U.S. Attorney Wendy J. Olson announced today the arrest on Tuesday evening of Droshawn Griggs by the Greater Idaho Fugitive Task Force (GIFTF). Griggs was arrested at a local motel in Nampa. He had an active warrant out of Pocatello for attempted murder and an active federal warrant issued by the United States District Court in Pocatello for federal drug charges. Griggs, 27, is a native of the Pocatello area.
Deputy U.S. Marshals, Pocatello Police Department, and Idaho Department of Correction–Probation and Parole (Pocatello) had been looking for Griggs for about a month and a half when information was developed indicating that Griggs was staying at a local motel in the Nampa area. The information was relayed to Deputy U.S. Marshals and GIFTF agents in the Nampa area who were able to locate and arrest Griggs without incident. He was booked into the Canyon County Jail where he is awaiting extradition on attempted murder and federal drug charges. Griggs and two other defendants, Toulon K. Mattox and Chase R. Mitchell, were indicted by a federal grand jury on December 11, 2012, for conspiracy to distribute controlled substances – methamphetamine, oxycodone and marijuana.
GIFTF is a task force led by the U.S. Marshals Service and comprised of agents from the Idaho State Police, Idaho Department of Correction–Probation and Parole, Ada County Sheriff’s Office, Bannock County Sheriff’s Office, Canyon County Sheriff’s Office, Boise Police Department, Chubbuck Police Department, Nampa Police Department, and Pocatello Police Department.
In fiscal year 2011, U.S. Marshals Service-led task forces arrested 86,400 state and local fugitives, clearing approximately 113,300 state and local felony warrants.
An indictment is only an allegation of criminal conduct and is not evidence of guilt. A person is presumed innocent until and unless proven guilty beyond a reasonable doubt in a court of law.
Part Owner and Founder of Barnes Farming Corporation Pleads to Structuring Currency TransactionsRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today CARSON BAKER BARNES, 77, of Rocky Mount, North Carolinapled guilty before Chief United States District Judge James C. Dever III to the following offense: Structuring transactions to evade reporting requirements and aiding and abetting, all in violation of Title 31, United States Code, Section, 5324(a)(3) and (d)(2), and Titles 18, United States Code, Section 2.
U.S. Attorney Walker stated, “This prosecution reflects our office’s commitment to prosecute those persons who cooperate with law enforcement in investigations and then subsequently engage in criminal conduct. Cooperation is not a free pass against future misconduct.”
According to the Criminal Information filed on December 4, 2012, and information in the public record, BARNES came to law enforcement’s attention in connection with the on-going crop insurance fraud investigation in the Eastern District of North Carolina. In January 2010, BARNES agreed to provide information to law enforcement. Subsequently, BARNES engaged in the offense conduct charged in the Criminal Information.
Specifically, in 2012, law enforcement learned that BARNES requested, Ham Farms Inc., structure the payment for sweet potato plants purchased by Ham Farms from Barnes. Specifically, BARNES caused Ham Farms Inc. to issue 24 checks totaling $135,395.00 for two sale dates of June 17, 2011, and June 24, 2011. Checks were issued in the name of BARNES and 2 other persons.
Investigation further revealed that at least one of the payees caused some of the checks to be cashed at different branches of the same bank on the same date; other checks were negotiated over the course of three weeks, with the last check being negotiated on or about July 12, 2011.
BARNES is part owner and founder of Barnes Farming Corporation in Spring Hope, North Carolina.
“At this time of year, when hard-working citizens are sitting down to prepare their tax returns, it is especially disappointing to see the overt steps some individuals will take to hide their taxable funds from the government,” said IRS Criminal Investigation Special Agent in Charge, Jeannine A. Hammett. “IRS-CI is determined to stop those who try to cheat the government, and the facts outlined in today's plea are strong indicators that we can and will find this fraudulent activity.”
The defendant faces a maximum sentence of 10 years imprisonment and/or a $500,000 fine, and 3 years of supervised release. Sentencing is set for the Court’s April 15, 2013, term of court.
The criminal investigation of this case was conducted by the United States Internal Revenue Service – Criminal Investigations, United States Department of Agriculture – Office of Inspector General - Investigations, and United States Department of Agriculture – Risk Management Agency - Special Investigations Branch. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.
Panola County Felon Sentenced for Firearms ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 45-year-old Carthage, Texas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas announced U.S. Attorney John M. Bales today.
Kevie Lenn Johnson pleaded guilty on June 14, 2012 to possession of a stolen firearm and was sentenced to 100 months in federal prison today by U.S. District Judge Leonard Davis.
According to information presented in court, on Jan. 26, 2012, Johnson took a .22 caliber rifle from a Carthage, Texas residence without consent of the owner. Further investigation revealed Johnson was a convicted felon, having previously been found guilty of multiple felony crimes including possession of crack cocaine, burglary of a habitation, and robbery. Federal law prohibits the possession of stolen firearms and further prohibits convicted felons from owning or possessing firearms or ammunition. Johnson was indicted by a federal grand jury on Feb. 1, 2012 and charged with federal firearms violations.
This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the ATF and the Carthage Police Department and prosecuted by Assistant U.S. Attorney Jim Noble.Orthofix Defendant Sentenced for Defrauding MedicareRead the Press Release
BOSTON – A former manager of medical device company Orthofix was sentenced today in federal court for defrauding Medicare by falsifying patient medical records.
In March 2012, Derrick R.D. Field, 36, of Greenland, New Hampshire, pleaded guilty to charges of health care fraud. Today, U.S. District Court Joseph L. Tauro sentenced him to five months home confinement as part of his two years probation. Judge Tauro also ordered Field to pay a fine of $4,000, and to forfeit $40,000.
Field admitted that for several years he falsified patient medical records, causing Medicare to pay more than $250,000 for fraudulent claims for medical devices. Between 2005 and 2011, Field was a territory manager for Orthofix, Inc., a company that manufactured and distributed bone growth stimulator medical devices. Bone growth stimulators are used to assist patients with bone fractures that did not heal properly. Medicare has specific rules describing when it will pay for this device. When Field received bone growth stimulator orders for Medicare patients that did not meet these rules, Field forged the patients’ medical records to make it appear as though the order met the rules to induce Medicare to pay for claims that otherwise would not be covered. For instance, Field created phony medical chart notes, describing patient visits that did not occur and altered the physicians’ actual chart notes by inserting false diagnoses and descriptions of the patients’ medical history. Field forged medical records in connection with more than 100 Medicare claims, causing Medicare to pay Orthofix for orders that did not meet program guidelines.
In addition to Field’s sentence, the on-going Orthofix investigation has resulted in a number of felony charges against executives, employees and contractors of Orthofix, including the following:
1. In December 2012, Orthofix was convicted of obstruction of a federal audit, and ordered to pay approximately $42 million in criminal fines and civil payments, and was sentenced to probation for five years;
2. In April 2012, Thomas Guerrieri pleaded guilty to paying kickbacks while he was vice president of Orthofix;
4. In December 2011, Mitchell Salzman pleaded guilty while he was a regional manager for Orthofix;
6. In July 2012, Michael Cobb, a physician’s assistant, was sentenced to six months in prison to be followed by two years of supervised release, six months of which under home confinement and ordered to pay $10,000 in forfeiture. Cobb previously pleaded guilty to accepting kickbacks from Orthofix.;
7. In May 2012, Michael McKay pleaded guilty to health care fraud while he was a territory manager for Orthofix; and
8. In September 2012, Brian Racey pleaded guilty to health care fraud while he was a territory manager for Orthofix.
U.S. Attorney Carmen M. Ortiz said, “Health care fraud not only drains valuable taxpayer resources, it drives up overall health care costs and victimizes some of our nation’s most vulnerable members of society, including the elderly and disabled. In the District of Massachusetts, we have worked tirelessly to combat health care fraud and will continue to hold corporations and individuals accountable.”U.S. Attorney Ortiz and Susan J. Waddell, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys David Schumacher and Jeremy Sternberg of Ortiz's Health Care Fraud Unit.