ALBUQUERQUE – Bryan C. Lawson, 22, of Las Cruces, N.M., pled guilty today in federal court to a cocaine trafficking charge under a plea agreement with the U.S. Attorney’s Office.

The Las Cruces Police Department (LCPD) arrested Lawson in March 2018, after finding approximately 274 grams of methamphetamine in Lawson’s vehicle during a routine traffic stop.  According to the complaint, Lawson was on supervised release for a prior methamphetamine trafficking felony conviction at the time of his arrest. 

During today’s proceedings, Lawson pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute.  In entering the guilty plea, Lawson admitted that on March 18, 2018, in Dona Ana County, N.M., he possessed approximately 223.6 grams of methamphetamine inside the vehicle he was driving when he was stopped by LCPD officers.  Lawson also admitted that it was his intention to distribute the drugs to others.

At sentencing, Lawson faces an enhanced penalty of a statutory mandatory minimum term of imprisonment of ten years and a maximum of life, instead of the otherwise applicable five to 40 years of imprisonment, because of his prior felony drug trafficking conviction.  Lawson remains in federal custody pending a sentencing hearing, which has yet to be scheduled.

This case was investigated by the Las Cruces office of the DEA, the Las Cruces Police Department and the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force, and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.

The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police.  The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988.  HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.

CEDAR RAPIDS, IA – There will be a press conference held on Thursday, June 7, 2018, at 12:00 p.m. in the Harold E. Getty Council Chambers located at 715 Mulberry St., in Waterloo, Iowa.  United States Attorney Peter E. Deegan, Jr., Waterloo Police Chief Daniel Trelka, representatives from federal and local law enforcement, and community members will be present at the press conference.  The purpose of the press conference is to announce the Safer Areas For Everyone (SAFE) initiative, a new initiative involving law enforcement and the Waterloo community to enhance efforts to combat violent crime.  

Other participants in SAFE are the Bureau of Alcohol, Tobacco, and Firearms, the Federal Bureau of Investigation, the Iowa Department of Corrections, the Black Hawk County Attorney’s Office, and members of the community.  SAFE is an initiative in furtherance of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone.   

Event Details

When:        June 7, 2018

Where:       Harold E. Getty Council Chambers, 715 Mulberry St., Waterloo

Time:         12:00 p.m.

A press release will be provided and interview opportunities will be available.  Follow us on Twitter @USAO_NDIA.

WHEELING, WEST VIRGINIA – Two men in the United States illegally were indicted today by a federal grand jury on drug charges, United States Attorney Bill Powell announced.

Hsun Jung Chang, age 29, and Shougi Li, age 24, are each charged with one count of “Conspiracy to Possess with the Intent to Distribute and Distribute Marijuana,” and one count of “Aiding and Abetting Possession with Intent to Distribute Marijuana.” The men are accused of possessing marijuana in Ohio County in May 2018.

Each defendant faces up to five years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The West Virginia State Police and the Ohio County Sheriff’s Office investigated.

An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
 

A man who possessed child pornography pled guilty yesterday in federal court in Cedar Rapids.

Austin Marek, age 22, from Anamosa, Iowa, was convicted of one count of possession of child pornography.  At the plea hearing, Marek admitted that, in 2016, he knowingly possessed child pornography, including one or more depictions of prepubescent children.

Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared.  Marek was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing.  Marek faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, $5,100 in special assessments, and supervised release for 5 years to life following any imprisonment.

This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation. 

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.  For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”

Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file number is CR 18-34.

Follow us on Twitter @USAO_NDIA.

TOPEKA, KAN. – Three indictments were unsealed today alleging massage parlors in Topeka and Lawrence were fronts for prostitution, U.S. Attorney Stephen McAllister said.

Five people were charged in federal grand jury indictments alleging prostitution businesses generated millions of dollars in revenue. Charges included conspiracy, interstate racketeering, bank fraud and money laundering.

Defendants charged include:

Ma Li Vanskike, 67, operator of ABC Massage (formerly Naima Therapy) in Lawrence is charged with one count of interstate racketeering and five counts of money laundering. An indictment alleges she laundered more than $1 million in revenues over a period of five years at Harrah’s Casino in North Kansas City, Mo.

Weiling Nielsen, 53, and Erik Nielsen, operators of Jasmine Massage in Topeka, Naima Asian Massage in Lawrence and Serenity Health Spa in Lawrence, are charged with two counts of conspiracy, two counts of bank fraud, five counts of money laundering, and one count of racketeering. An indictment alleges they bought and sold California real estate worth millions of dollars while falsely representing themselves to lenders as restaurant managers in Lawrence.

Lian Hua Li, 55, and Michael Mills, 61, are charged with two counts of conspiracy, two counts of interstate racketeering and four counts of money laundering. An indictment alleges Li operated Sunflower Massage (formerly Jasmine Massage) in Topeka and S-Therapy in Salina, and that Mills worked with her. The indictment alleges Mills transported female sex workers from the airport to massage parlors and assisted Li in laundering cash proceeds of prostitution. The indictment alleges some of the money was laundered through casinos in Kansas.

Upon conviction, the alleged crimes carry the following penalties:

Conspiracy: Up to 5 years in federal prison and a fine up to $250,000.

Racketeering: Up to five years and a fine up to $250,000.

Money laundering and money launder conspiracy: Up to 20 years and a fine up to $500,000.

Bank fraud: Up to 30 years and a fine up to $1 million.

The FBI investigated with the assistance of the Douglas County Sherriff’s Office, the Topeka Police Department and the Salina Police Department. Assistant U.S. Attorney Christine Kenney is prosecuting.

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.

WHEELING, WEST VIRGINIA – A Martinsburg, West Virginia man was indicted today by a federal grand jury on cocaine and heroin distribution charges, United States Attorney Bill Powell announced.

Jarod Arthur Blakney, also known as “Papi,” age 28, is charged with one count of “Distribution of Heroin,” one count of “Aiding and Abetting Distribution of Cocaine Base,” and three counts of “Distribution of Cocaine Base.” Blakney is accused of selling heroin and cocaine in Berkeley County in May and June of 2017.

Blakney faces up to 20 years incarceration and a fine of up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.

An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.

          A 20-year-old member of the Lummi Tribe was sentenced Monday June 4, 2018 to six years in prison and 20 years of supervised release for sexual abuse of a minor, announced U.S. Attorney Annette L. Hayes. JASON LITTLE SKY JAMES JR, of Bellingham, Washington, was indicted in November 2017, and pleaded guilty in March 2018.  U.S. District Judge James L. Robart noted the need to protect the public from JAMES JR., who will be required to register as a sex offender following his release from prison.

            According to records filed in the case, between December 2016 and September 2017, JAMES, JR engaged in sexual acts with a minor female who was 13 or 14 years old.  At the time of the sex acts,  JAMES JR  was a registered sex offender, having been convicted in Whatcom County Superior Court of indecent liberties in 2015.  In the 2015 case, JAMES JR was convicted of engaging in sexual acts with a minor female who was then 13-years-old.

            The cases came to light when the minor female reported the sex acts to a trusted adult, and the investigation revealed that JAMES JR. was aware of the victims’ young age at the time he engaged in sexual acts.

            The case was investigated by the Lummi Police Department and the FBI.  The case is being prosecuted by Assistant United States Attorneys J. Tate London and Chantelle D. Dial.  Mr. London is a Tribal Liaison for the U.S. Attorney’s Office. Ms. Dial is an Indian Country Fellow, part of the Attorney General’s Honors Program.

WHEELING, WEST VIRGINIA – A Cleveland, Ohio man was indicted today by a federal grand jury on cocaine distribution charges, United States Attorney Bill Powell announced.

Anthony Walter Rogers, age 27, is charged with three counts of “Distribution of Cocaine Base” and one count of “Possession with Intent to Distribute Cocaine Base.” Rogers is accused of selling cocaine in Marshall County in August 2017 and April 2018.

Rogers faces up to 30 years incarceration and a fine of up to $2,000,000 for each distribution count and faces up to life incarceration and a fine of up to $8,000,000 for the possession count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant U.S. Attorney Robert H. McWilliams, Jr., is prosecuting the case on behalf of the government. The Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.

An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.

SYRACUSE, NEW YORK – A jury today voted to convict Peter W. Farnum, age 41, of Clifton Park, New York, of possessing child pornography, following a 2-week trial.

The announcement was made by United States Attorney Grant C. Jaquith and Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

The evidence at trial established that Farnum, a former sergeant with the Saratoga County Sheriff’s Office, possessed more than 1,000 image and video files on his family computer that contained child pornography.  These included, among many others, image files that Farnum imported through the computer’s RealPlayer application while he conducted online research related to his position with the Sheriff’s Office and while his wife was in the hospital.

Following the verdict, Senior United States District Judge Norman A. Mordue remanded Farnum to custody pending sentencing on a date to be determined. Farnum faces up to 10 years in prison, a maximum fine of $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Farnum will also have to register as a sex offender. 

This case was investigated by the FBI, with assistance from the Saratoga County Sheriff’s Office.   The case is being prosecuted by Assistant U.S. Attorney Joseph A. Giovannetti.

This case is being prosecuted as part of Project Safe Childhood.  Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal 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 https://www.justice.gov/psc.

United States Attorney Gregory G. Brooker announced the guilty plea of SCOTT PHILLIP FLYNN, 55, to one count of conspiracy to defraud the United States and one count of filing a false tax return. FLYNN, who was initially charged on December 21, 2016, pleaded guilty yesterday before Senior U.S. District Judge Ann D. Montgomery in Minneapolis, Minnesota.

“Scott Flynn devised a complex fraud scheme by creating a labyrinth of business entities and layers of obfuscation to hide tens of millions of dollars from the IRS,” said Assistant U.S. Attorney David Maclaughlin. “Flynn generated his income using an alias name while hiding behind randomly-named Nevada-based companies titled in the name of his father. Flynn then sent the income he earned in this way to Australia to be held by nominees, and then repatriated the money indirectly, sometimes through Costa Rica. Flynn acknowledged at his plea hearing that he took these steps to defraud the Internal Revenue Service. Flynn’s scheme was animated by his desire to live a luxurious lifestyle unencumbered by income tax liabilities, a desire fulfilled by his purchase of a $2.7 million mansion in Orono with untaxed income repatriated through Costa Rica.”

“Conspiring with others to defraud the government with an elaborate stock scheme to underreport taxable income is unlawful and is also unfair to every taxpayer who obeys the law and pays their fair share,” stated Acting Special Agent in Charge Gabriel Grchan, St. Paul Field Office IRS Criminal Investigation. “Mr. Flynn's plea today serves as an important reminder that IRS-CI is committed to bringing to justice those who evade their income tax responsibilities.”

According to the defendant’s guilty plea and documents filed in court, between 2005 and 2015, FLYNN evaded the assessment of millions of dollars in income taxes by fraudulently hiding millions of shares of stock that he obtained for himself, his father, and entities they controlled (collectively, the “Flynn Group”). In 2006 and 2008, FLYNN assisted two privately-held Wisconsin-based companies, Tower Tech Systems, Inc. and Advanced Fiberglass Technologies, in becoming publicly traded through stock-for-stock “reverse merger” transactions. As compensation for FLYNN’S work, millions of shares of publicly-traded stock in the resulting public companies were transferred to “Integritas, Inc.” and “Diversified Equities Partners,” both of which were part of the Flynn Group. FLYNN, who exercised control over the stock, which had considerable value, was required to, but did not, report the receipt of the shares of stock as income on his individual income tax returns, or on the tax returns of members of the Flynn Group.

According to the defendant’s guilty plea and documents filed in court, in order to conceal his control and ownership of the stock, and to evade paying income taxes, FLYNN caused a portion of the stock to be put in the names of Australian nominees recruited by FLYNN’S co-conspirator, Steven Miotti. The Australian nominees, who never actually owned or controlled the stock, were directed to open brokerage accounts in the United States to receive the shares, but FLYNN possessed their login and password data so he could maintain control of the accounts and the shares of stock.

According to the defendant’s guilty plea and documents filed in court, during the course of the conspiracy, when FLYNN needed money, he caused the Australian nominees to sell shares of stock and transfer the proceeds to entities in the United States controlled by FLYNN, which in turn made payments to FLYNN or on his behalf. These sales generated millions of dollars in capital gains income, which FLYNN purposely failed to report to the IRS. For example, in 2007, FLYNN received approximately $2.7 million of the proceeds from the Australian nominees to buy a house in Orono, Minnesota, which was considered income to FLYNN. That year, in a tax return FLYNN acknowledged was materially false at his guilty plea hearing, FLYNN reported only $26,136 of total income. Throughout the course of the scheme, FLYNN concealed tens of millions of dollars in income and capital gains from the IRS and intentionally evaded the assessment of at least $3.5 million in income taxes.

This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS.

Assistant United States Attorneys David J. Maclaughlin and Benjamin F. Langner are prosecuting this case.

Defendant Information:

SCOTT PHILLIP FLYNN, 55

Orono, Minn.

Convicted:

• Conspiracy to defraud the United States, 1 count
• False tax return, 1 count

 
 
 
###
 
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600

United States Attorney Gregory G. Brooker announced the guilty plea of JESSE WELLS HAUG, 33, to one count of wire fraud. HAUG, who was charged in a superseding indictment on June 22, 2017, pleaded guilty yesterday before U.S. District Chief Judge John R. Tunheim in Minneapolis, Minnesota.

According to the defendant’s guilty plea and documents filed in court, HAUG is the owner of a Twin Cities-based construction company called 7-10 Services, LLC. From 2015 through the end of 2016, HAUG executed a scheme to defraud investors by falsely representing to them that he would use their money to purchase and renovate residential real estate, and, in exchange, he would share the profits when the properties were re-sold, or “flipped.”

According to the defendant’s guilty plea and documents filed in court, during the course of the scheme, HAUG obtained $880,000 from two victim-investors to purchase and renovate residential properties located throughout the Twin Cities. During the course of HAUG’S interactions with the victim-investors, HAUG false documentation showing how the investment money was being used, false information about upcoming real estate closings and re-sales of properties HAUG claimed to have flipped, as well as fictional documents showing “returns” from the so-called investment properties. In reality, HAUG spent the investment money on personal expenses and never purchased or sold any of the properties.

This case is the result of an investigation conducted by the FBI and the Minnesota Commerce Fraud Bureau.

Assistant United States Attorneys Kimberly A. Svendsen and Charles J. Kovats are prosecuting this case.

Defendant Information:

JESSE WELLS HAUG, 33

Rosemount, Minn.

Convicted:

• Wire fraud, 1 count

 
 
###
 
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600

SPRINGFIELD, Mo. – A Springfield, Mo., woman and a Nixa, Mo., man were sentenced in federal court today for their roles in a conspiracy to distribute large quantities of methamphetamine in southwest Missouri.

Melody W. Carpenter, 35, of Springfield, and Anthony A. Hatfield, 34, of Nixa, were sentenced in separate appearances before U.S. District Judge M. Douglas Harpool. Carpenter and Hatfield were each sentenced to 10 years in federal prison without parole.

Beginning in 2012, the Drug Enforcement Administration, assisted by other agencies, investigated one of the largest methamphetamine distribution rings in southwest Missouri. The leaders of the drug-trafficking conspiracy were Kenneth R. Friend, 47, of Springfield, and Kenna Harmon, 39, of Republic, Mo., who obtained pound amounts of methamphetamine from sources in Kansas City, St. Louis, and Oklahoma for distribution in the Springfield area. The investigation resulted in the indictment of 29 co-defendants. In total, the Friend/Harmon drug-trafficking organization was responsible for the distribution of over 45 kilograms of methamphetamine from June 1, 2013, through Nov. 29, 2014.

Both Carpenter and Hatfield pleaded guilty to participating in the conspiracy to distribute methamphetamine. Carpenter and Hatfield admitted they purchased methamphetamine from Friend and Harmon, which they distributed to others.

On Nov. 3, 2014, officers intercepted communications between Friend and Carpenter in which Carpenter appeared to be brokering a large methamphetamine transaction for Friend. Officers followed Friend and Carpenter to a residence in Springfield, then followed Friend and Carpenter back to Friend's residence. A short time later, Carpenter left Friend's house, and was detained by DEA agents. Agents seized approximately four to six ounces of methamphetamine from Carpenter and a loaded Davies Industries .380-caliber semi-automatic pistol. Carpenter told investigators she had just brokered a two-pound methamphetamine transaction between Friend and another conspirator.

During the course of the wiretaps in this case, hundreds of communications were intercepted between Carpenter and others where she was arranging methamphetamine transactions or financial transactions involving the payment for methamphetamine. During the conspiracy, Carpenter received ounce amounts of methamphetamine at least once per week and redistributed them in the Springfield area.

On Nov. 17, 2014, the DEA intercepted calls between Friend and Hatfield indicating that Hatfield was arranging to purchase a half pound of methamphetamine from Friend. Officers saw Friend and Hatfield meet at Bass Pro Shops in Springfield. They arrived in separate vehicles and Hatfield was seen getting into the vehicle with Friend. After Hatfield got out and drove off in his own vehicle, he was stopped by Springfield police officers. Officers found a half pound of methamphetamine (approximately 225 grams) under his driver's seat.

During another intercepted telephone call, Harmon and Hatfield discussed Harmon’s child finding a Crown Royal bag that contained approximately one pound of methamphetamine inside of it, which Hatfield had left in the child’s bedroom.  At one point during the conversation, Harmon put her child on the phone to talk with Hatfield. Harmon and Hatfield agreed to meet at the Wal-Mart parking lot in Republic so that Hatfield could receive some of the methamphetamine back. Hatfield stated he would buy presents for Harmon’s children to make up for what happened. Harmon said she would bring the children along with her to the Wal-Mart parking lot to meet Hatfield so he could give them the presents.

Friend pleaded guilty on April 11, 2018, and awaits sentencing. Harmon pleaded guilty and was sentenced on May 29, 2018, to 21 years and six months in federal prison without parole.

Harmon’s husband, Daniel Harmon, was also a leader of the drug-trafficking conspiracy. In December 2013, Daniel Harmon was stopped by law enforcement officers outside of St. Louis. During a search of his vehicle, officers discovered approximately four pounds of methamphetamine, $60,000 and a handgun. Daniel Harmon was indicted in the Eastern District of Missouri and pleaded guilty to possessing methamphetamine with the intent to distribute and to being a felon in possession of a firearm.

After Daniel Harmon’s arrest and incarceration, Kenna Harmon continued to lead the drug-trafficking organization in its distribution of methamphetamine.  

Carpenter and Hatfield are among 21 co-defendants who have been sentenced in this case. The remaining eight defendants have pleaded guilty and await sentencing.

This case is being prosecuted by Assistant U.S. Attorneys Randall D. Eggert, Nhan D. Nguyen and Cynthia J. Hyde. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Missouri State Highway Patrol, the Springfield, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
 

Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Angelica Avendano , A/K/A Angelica Avendano-Gonzalez age 28, of Avondale, Arizona, was sentenced today to 42 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.

 According to court records, in November 2017, during the course of an investigation into the distribution of methamphetamine in the Western District of Arkansas, the Drug Enforcement Administration, (DEA) identified Avendano as the girlfriend and co-conspirator of Oscar David Zuniga-Chavez, a methamphetamine source of supply for local distributors of methamphetamine. During the investigation, agents sought and obtained a federal search warrant for Avendano’s residence in Peoria, AZ that she shared with Zuniga-Chavez. On December 8, 2016, agents with the DEA Fayetteville Resident Office traveled to Arizona, where they assisted DEA agents and task force officers from Phoenix, Arizona in the execution of the search warrant. Agents made contact with the Avendano at the residence, and advised her of her Miranda rights. During the interview with Avendano, she waived her Miranda rights and admitted to sending multiple packages containing methamphetamine to the Western District of Arkansas for distribution.

 Avendano was indicted by a federal grand jury in July 2017 and pleaded guilty in January 2018.

This case was investigated by the Drug Enforcement Administration.  Assistant United States Attorney Kim Harris prosecuted the case for the United States.

United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.

Joseph Blue Bird, age 31, was indicted on February 14, 2018.  He appeared before U.S. Magistrate Judge Mark A. Moreno on June 4, 2018, and pled not guilty to the Indictment.

The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund.  Restitution may also be ordered.

Blue Bird was convicted of Abusive Sexual Contact in February 2014.  As a result of this conviction, he is required to register as a sex offender.  It is alleged that between December 10, 2017, and February 13, 2018, Blue Bird, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender.

The charge is merely an accusation and Blue Bird is presumed innocent until and unless proven guilty. 

The investigation is being conducted by the U.S. Marshals Service.  Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.   

Blue Bird was remanded to the custody of the U.S. Marshals Service pending trial.  A trial date has not been set.

United States Attorney Ron Parsons announced that a Martin, South Dakota, man convicted of Accessory After the Fact (Murder) and Conspiracy to Distribute a Controlled Substance, was sentenced on May 24, 2018, by Chief Judge, Jeffrey L. Viken, U.S. District Court.

Scott Edison Benson, age 31, was sentenced to 10 years in federal custody, to run consecutive with a second federal sentence of 8 1/3 years, followed by 4 years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.

Benson previously pleaded guilty to Accessory After the Fact, on January 19, 2018.  On the same day, in an unrelated matter, Benson also pleaded guilty to Conspiracy to Distribute a Controlled Substance.

On May 27, 2017, Benson and two other males drove to meet Christopher E. Janis near Sharps Corner.  While Benson was arranging a purchase of prescription pills with Janis, one of the other males with Benson appeared at the driver-door window by Janis.  Benson witnessed the male shoot Janis, and saw the second male take the handgun and shoot him several additional times.  Christopher E. Janis died from the multiple gunshot wounds.  Benson ran back to his vehicle and drove away with the two males.  The firearm used by the men in the shooting belonged to Benson.  At no time after Benson witnessed the men shoot Janis did he make any attempt to render aid or contact law enforcement.  The two men with Benson have been indicted and their cases are currently pending.

Benson was also part of a conspiracy to distribute methamphetamine from January 2016 through approximately May 30, 2017, around the Pine Ridge Reservation, particularly in the Martin, Allen, and Kyle areas.  He distributed to others for consumption at least 350, but less than 500 grams, of methamphetamine.

Drug trafficking is an inherently violent activity.  Firearms are tools of the trade for drug dealers.  It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.   Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

These two cases were investigated by the Federal Bureau of Investigation, Northern Plains Safe Trails Task Force, Bureau of Indian Affairs Office of Justice Services, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Oglala Sioux Tribe Department of Public Safety, South Dakota Division of Criminal Investigations, and the Rapid City Police Department.  Assistant U.S. Attorney Kathryn N. Rich prosecuted both cases.

Benson was immediately turned over to the custody of the U.S. Marshals Service.

ALBUQUERQUE – Leroy Tchod Cameron Ravenell, 28, of Colorado Springs, Colo., was sentenced this morning in federal court in Las Cruces, N.M., to 30 months in prison for his cocaine trafficking conviction.  Ravenell will be on supervised release for three years after completing his prison sentence.

U.S. Border Patrol agents arrested Ravenell on Nov. 11, 2016, after finding approximately .36 kilograms (.8 pounds) of cocaine and two loaded firearms concealed in his vehicle during an inspection at the U.S. Border Patrol checkpoint near Alamogordo, N.M., in Otero County, N.M.  Ravenell initially was charged in a criminal complaint.  He subsequently was indicted on May 17, 2017, and was charged with possession of cocaine with intent to distribute.

On Aug. 2, 2017, a federal jury returned a guilty verdict against Ravenell on the sole count of the indictment.  The testimony at trial established that on Nov. 11, 2016, Ravenell was a passenger in his vehicle when it drove into the U.S. Border Patrol checkpoint on Highway 54 south of Alamogordo.  During a routine inspection of Ravenell’s vehicle, Border Patrol agents found approximately 243 grams of cocaine and two firearms in the back of the vehicle, in addition to finding a large amount of cash on Ravenell’s person.  The jury also heard Ravenell’s statement to law enforcement acknowledging that he bought the cocaine in El Paso, Tex., on the morning of Nov. 11, 2016, with the intention of selling it to others.  

This case was investigated by the DEA and the U.S. Border Patrol and was prosecuted by Assistant U.S. Attorneys John Balla and Richard C. Williams of the U.S. Attorney’s Las Cruces Branch Office.

United States Attorney Gregory G. Brooker today announced a five-count indictment charging CAMERON THOMAS CROWLEY, a/k/a “Vigilance,” 19, with intentional access to a protected computer, intentional damage to a protected computer, and aggravated identity theft. CROWLEY made his initial appearance earlier this afternoon before United States Magistrate Judge Becky R. Thorson in Saint Paul, Minnesota. CROWLEY will remain in federal custody pending his detention hearing.

According to the indictment, between May 28, 2017 and June 17, 2017, CROWLEY intentionally gained unauthorized access to protected computer servers owned by the State of Minnesota and other entities. CROWLEY also caused the transmission of programs, code, and commands to the protected computer servers, causing damages and a loss to the State of Minnesota of more than $5,000. The indictment also charges CROWLEY with one count of aggravated identity theft.

This case is the result of an investigation conducted by the FBI and the Minnesota Bureau of Criminal Apprehension. 

Assistant U.S. Attorney Katharine T. Buzicky is prosecuting the case.

Defendant Information:                                                                                                                     

CAMERON THOMAS CROWLEY, a/k/a “Vigilance,” 19

Lino Lakes, Minn.

Charges:

• Intentional access to a protected computer, 3 counts
• Intentional damage to a protected computer, 1 count
• Aggravated identity theft, 1 count

 
 
 
###
 
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600

The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

 ASHEVILLE, N.C. – A 23-count criminal indictment was returned by a federal grand jury sitting in Asheville late Tuesday, charging former Buncombe County Manager Wanda Skillington Greene, 66, of Arden, N.C., with wire fraud, federal program fraud, and money laundering, in connection with a $2.3 million scheme involving the purchase of whole life insurance policies for herself and other county employees using misappropriated County funds, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.

John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Director Robert Schurmeier of the North Carolina State Bureau of Investigation (SBI); and Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), join U.S. Attorney Murray in making today’s announcement.

According to the indictment, Wanda Greene was appointed as County Manager for Buncombe County (the County) in 1997, and remained in that position until her retirement in June 2017.  As County Manager, Wanda Greene was responsible for the administration of all departments of the County’s government under the control of the Board of Commissioners (the Board).  In that role, Wanda Greene had the power to appoint, suspend, and remove all county officers, employees, and agents, and was responsible for directing and supervising the administration of all county offices, departments, boards, commissions and agencies controlled by the Board.  As part of her duties, Wanda Greene was also required to prepare and submit the County’s annual budget and capital program to the Board, and to submit annually to the Board, and make available to the public, a complete report of the finances and administrative activities of the county at the end of the fiscal year. 

According to allegations contained in the indictment, beginning in or about April 2015, and continuing until in or about July 2017, Greene defrauded Buncombe County by misappropriating approximately $2.3 million of Buncombe County funds to purchase whole life insurance policies for herself, her son Michael Greene, and eight other County employees, and to purchase an annuity for another county employee who did not qualify for a whole life insurance policy. During the time period relevant to the indictment, Buncombe County received benefits in excess of $10,000 per year under a federal program involving a grant, contract, subsidy, loan, and other forms of federal assistance. 

The indictment alleges that in April 2015, Greene began communicating with a Charlotte-based insurance agent about her intent to procure insurance policies for herself and certain other Buncombe County employees at County expense.  Shortly after meeting with the insurance agent, Greene falsely began telling selected County employees that she had been working with the Board on a new benefit program for certain employees involving the County’s purchase of life insurance policies for them, at no expense to the employee.  Greene allegedly stressed that only certain employees would be receiving this benefit, and told the employees with whom she spoke to keep this program and their participation strictly confidential.

According to the indictment, the policies that Greene was procuring were whole life insurance policies, with a resulting cash value and the ability to borrow against such policies.  Furthermore, the indictment alleges that, at Greene’s direction, the County prepaid the initial payment and several years’ worth of annual premiums for each policy agreement, which meant that, upon termination of the policy, a policy owner could receive whatever cash value the policy had, as well as the remaining prepaid premiums. The indictment alleges that in this manner, in the first month after Greene retired from her County employment, she was able to obtain cash out of two such policies, thereby personally obtaining approximately $396,000 of fraudulently-acquired money funded by Buncombe County. 

According to allegations in the indictment, Greene selected the employees that would receive the life insurance policies and selected the amounts the County would prepay for each policy.  To fund the scheme, Greene did not seek the Board’s authorization to purchase these policies with County funds.  Rather, in order to gain access to the County money necessary to fund her scheme, the indictment alleges that Greene inflated the settlement amounts for two federal civil rights lawsuits against the County that the Board agreed to pay.  She later fraudulently claimed to the life insurance company, the insurance agent, and to the various County employees that the Board had also approved and enacted funding for the life insurance program she had created when it enacted a budget amendment to settle those lawsuits, when, in fact, the Board never approved, and never even knew about the existence of, Greene’s life insurance scheme. 

The indictment further alleges that after the Board approved the requisite budget amendment to fund the settlement of the civil lawsuits, Greene caused a series of interstate wire transactions to make initial lump-sum prepayments, and later quarterly payments, toward the premiums of the various insurance policies.  According to the indictment, shortly before she announced her intention to retire, Greene attempted to quadruple the quarterly payments from $40,000 to $160,000.  When the County’s Finance Director expressed concern about the increased amount, Greene destroyed the handwritten note she had provided requesting the increase, and told the Finance Director to forget about any more payments. 

On May 30, 2017, Greene publicly announced her retirement, which took effect on June 30, 2017.  The indictment alleges that, almost immediately upon her retirement, Greene liquidated her two life insurance policies.  As a result, on or about July 13, 2017, the insurance company sent Greene two checks totaling $395,859.60, which Greene deposited into her State Employee Credit Union account. Less than a month later, on or about August 7, 2017, Greene used a portion of the proceeds from the insurance checks to wire $155,000 from her State Employees Credit Union account to the account of a law firm in Nashville, Tennessee.

Wanda Greene has been ordered to appear on a summons on the charges.  She is charged with 12 counts of wire fraud, each of which carries a maximum penalty of 20 years in prison and a $250,000 fine; eight counts of federal program fraud, each carrying a maximum prison term of 10 years per count and a $250,000 fine; and three counts of money laundering, which carry a maximum penalty of 10 years in prison per count and a $250,000 fine.

A separate federal indictment was filed in April 2018, against Wanda Greene and her son, Michael Greene, for misusing their government credit cards to make approximately $200,000 worth of improper purchases.  Those charges are still pending.

In making today’s announcement U.S. Attorney Murray thanked the FBI, IRS-CI and the SBI for their investigation of this case, and noted that the investigation into allegations of criminal activities within the Buncombe County Government is ongoing.

            Assistant United States Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville is in charge of the prosecution.

# # #

SACRAMENTO, Calif. — On Monday, after a seven-day trial, a federal jury found Saber A. Shehadeh, 75, of Sacramento, guilty of three counts of mail fraud related to an arson fraud scheme, U.S. Attorney McGregor W. Scott announced. Shehadeh was remanded into custody following the verdict.

According to evidence presented at trial, Saber Shehadeh made a series of false statements to State Farm Insurance Company to get insurance money after two fires destroyed buildings he owned at the corner of 10th and E Streets in Sacramento’s Alkali Flat neighborhood. The fires occurred on December 27, 2009, and August 15, 2010, and ultimately destroyed a historical building where Saber Shehadeh ran a business called Tru Value Market. Prior to the fires, the financial condition of Shehadeh’s Tru Value Market had declined. He experienced suspension from USDA’s food stamp program, bounced mortgage checks, and frequent overdrafts on his business bank account, and his alcohol license was placed in jeopardy due to a conviction for food stamp fraud and receiving stolen property.

After the second fire, Saber Shehadeh became a silent partner in a supposed construction company that was then used to submit inflated invoices for post-fire cleanup to State Farm. During State Farm’s investigation of the insurance claims, Saber Shehadeh made a series of false statements about the status of his market prior to the fires, and submitted fraudulent documents and made false statements about the debris removal performed after the second fire. Saber Shehadeh received over $1.4 million in insurance proceeds after the fires, enabling him to pay off his mortgage and still have several hundred thousand dollars left over to invest in new businesses and to share with family members, including his co-defendant Jamal Shehadeh.

This case is the product of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Sacramento Fire Department; the Sacramento Metropolitan Fire Department; and the Sacramento Sheriff’s Department. Assistant U.S. Attorneys Michael D. Anderson and Christopher S. Hales prosecuted the case.

On February 10, 2018, Jamal Shehadeh pleaded guilty to two counts of arson to commit a felony and was sentenced to 30 years in prison. According to his plea agreement, Jamal Shehadeh set or caused to be set the first fire at Saber Shehadeh’s 10th and E Street property. On April 17, 2018, another co-defendant, Brian Stone, was convicted of 13 counts of mail and wire fraud after a separate jury trial and is currently scheduled to be sentenced on July 12, 2018.

Saber Shehadeh is scheduled to be sentenced on September 6, 2018, by U.S. District Judge Morrison C. England Jr. Shehadeh faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of conviction. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — On May 17, 2018, a federal grand jury returned an indictment against Danny Lee Rhines, 34, of Vallejo, charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced. The indictment was unsealed on June 1, and Rhines was arraigned before U.S. Magistrate Judge Edmund F. Brennan on June 4.

According to court documents, in March 2018, officers observed Rhines driving a Nissan Altima and tried to pull him over. Rhines, who was the driver and sole occupant, ran a red light and attempted to flee the police, but eventually came to a stop and was apprehended. Officers found a Ruger .22-caliber pistol in the Altima. Rhines has previously been convicted of a felony and is prohibited by federal law from possessing firearms.

This case is the product of an investigation by the FBI Solano County Violent Crimes Task Force and the Fairfield Police Department. Assistant U.S. Attorney Owen Roth is prosecuting the case.

If convicted, Rhines faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.