BOSTON – A Canadian national pleaded guilty yesterday in federal court in Springfield to enticing children over the internet to produce child pornography and to send the sexually explicit pictures to him.

Justin Carl Wong, 35, of Ontario, Canada, pleaded guilty to 10 counts of sexual exploitation of a minor. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Oct. 4, 2018. Wong was indicted in August 2014 and has been in custody since his arraignment on Aug. 10, 2017, after being extradited from Canada.

In December 2012, Wong used a Voxer account to communicate with two girls, aged eight and 10, in Hampshire County. Wong first sent text and voice messages to the 10-year-old girl, knowing that she was a minor. Wong offered to be her “pretend boyfriend” and to help her “get a boyfriend in” her “real life.” Wong asked the girl to send him sexually explicit pictures of herself, but the child initially refused. Wong used psychological pressure to persuade and then to bully the girl to send him sexually explicit pictures by threatening to never speak to her again and telling her she would live a “lonely life” and to “have a nice life being alone” without Wong in her life. Wong repeatedly referred to her as a “bitch” and said she was a “loser” because she refused to send the pictures.

On Dec. 19, 2012, the 10-year-old girl succumbed to Wong’s repeated demands and took and sent three sexually explicit pictures of herself, as well as two sexually explicit photographs with the eight-year-old girl. Later that day, Wong engaged in a series of online communications with the eight-year-old girl in which Wong demanded specific kinds of sexually explicit pictures. The girl responded by taking and sending to Wong five such photographs.

Each count of sexual exploitation provides for a mandatory minimum sentence of 15 years and up to 30 years in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.   

United States Attorney Andrew E. Lelling, Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Granby Police Chief Alan Wishart made the announcement. Assistant U.S. Attorney Alex Grant of Lelling’s Springfield Branch Office is prosecuting the case.

BOSTON – A Boston man was sentenced yesterday in federal court in Boston for robbing five banks throughout April and June 2017.

Thomas W. Nee, 47, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 92 months in prison and three years of supervised release. In September 2017, Nee pleaded guilty to five counts of bank robbery. Nee’s federal sentence will begin after he completes a three-year state sentence he is currently serving.

Between April and June 2017, Nee robbed five Boston banks of over $8,200. The robberies occurred on April 21, at Santander Bank on Commonwealth Avenue; on May 5, at Citizens Bank on Tremont Street; on May 8, at Century Bank on State Street; on May 22, at Randolph Savings Bank on School Street; and on June 8, at Eastern Bank on West Broadway. Nee committed each of the robberies by handing a teller a note demanding money.

United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Office, made the announcement. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit prosecuted the case.

LONDON, Ky. – A Middlesboro, Ky. resident was indicted yesterday on federal charges of attempted production of child pornography and receiving, distributing, and possessing child pornography.

A federal grand jury in London returned the four-count indictment against 30-year-old Jordan Ryan Turner, a teacher and assistant basketball coach at Bell County High School.  Turner was originally arrested on a state charge of using electronic means to induce a minor to engage in sexual activities.  A federal criminal complaint was filed against Turner and those charges were presented to the grand jury, which returned the indictment. 

Robert M. Duncan, Jr., U.S. Attorney for the Eastern District of Kentucky; Amy Hess, Special Agent in Charge, Federal Bureau of Investigation; and Richard Sanders, Commissioner of Kentucky State Police, jointly announced the charges.

The KSP and FBI have jointly conducted the investigation. Assistant U.S. Attorney Greg Rosenberg represents the United States in the case.

Trial is currently scheduled for September 4, 2018.  If convicted on all counts, Turner faces a mandatory minimum of 15 years and maximum of 90 years in prison.  However, any sentence following a conviction would come after the Court considers the U.S. Sentencing Guidelines and relevant federal statutes.

            Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.

ASHLAND, Ky.– The U.S. Attorney’s Office has filed a civil lawsuit against an Ashland addiction treatment specialist, Dr. Rose O. Uradu, and her substance abuse treatment center, Ultimate Care Medical Services, LLC d/b/a Ultimate Treatment Center, alleging that they defrauded the both Medicare and Medicaid programs, and that they violated the Controlled Substances Act.

The lawsuit alleges that the defendants sought and received payments from Medicare and Medicaid for services that were not actually provided to patients.  According to the complaint, between January 2013 and September 2014, defendants billed these government programs for “evaluation and management” services purportedly provided to patients who visited the clinic to receive daily methadone doses for their substance abuse treatment.  Evaluation and management services typically include performance of an examination of the patient, a patient history, and medical decision-making.  The complaint alleges that Ultimate Treatment Center did not perform these services when patients received their methadone doses, but billed Medicare and Medicaid for the services anyway.  According to the complaint, defendants falsely documented the performance of evaluation and management services in the patients’ medical records, including by electronically copying notes from one visit to the next – for days, weeks, and even months.

The complaint further alleges that during the period July 2013 to December 2014, defendants billed Medicare and Medicaid for complex urine drug testing that was not actually performed.

The lawsuit contends that billing for services not provided violates the False Claims Act.  If found liable, the defendants will have to repay Medicare and Medicaid three times the amount of the Government’s loss for the fraud, in addition to financial penalties of $5,500 to $11,000 per false claim.  According to the complaint, the Government’s loss exceeds $1 million. 

The lawsuit also alleges that, for a three-month period in 2014, Dr. Uradu issued buprenorphine prescriptions to twice as many patients as is permitted by law.  Buprenorphine is marketed under the brand names Suboxone and Subutex, and is used medically in the treatment of opioid addiction.  Because buprenorphine has the potential for diversion and abuse by recreational users, it is a controlled substance regulated by law.  According to the complaint, Dr. Uradu was only permitted to treat 100 patients with buprenorphine drug products, but repeatedly exceeded her patient limit.   Specifically, the complaint alleges that three months in a row, she wrote prescriptions for buprenorphine for more than 200 unique patients – twice her limit.  The complaint contends that Dr. Uradu violated the Controlled Substances Act each time she wrote a prescription over her limit.  Under that law, if found liable, Dr. Uradu is subject to a financial penalty of up to $25,000 for each violation. 

Finally, the complaint further alleges that during the period January 1, 2017 to April 28, 2017, Ultimate Treatment Center failed to maintain complete and accurate records of the clinic’s methadone and buprenorphine inventories, as is required by law.  According to the complaint, Ultimate Treatment Center’s records did not account for the equivalent of 45 bottles of methadone oral solution, and 22 bottles of buprenorphine tablets.  The complaint contends that Ultimate Treatment Center’s failure to keep accurate records violates the Controlled Substances Act.  Under that law, Ultimate Treatment Center is subject to a financial penalty of up to $10,000 for each recordkeeping violation.

The lawsuit is captioned United States v. Rose O. Uradu, M.D., et al., Civ. No. 18-66.  The investigation preceding the complaint was conducted by agents with the U.S. Drug Enforcement Administration, Federal Bureau of Investigation, and the Kentucky Attorney General’s Medicaid Fraud and Abuse Control Unit.  Assistant U.S. Attorney Christine Corndorf will represent the United States in this case.  

SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Antonio Perez, age 46, of Hazleton, was sentenced to 33 months’ imprisonment and three years on supervised release on June 28, 2018, by U.S. District Court Judge Malachy E. Mannion for distributing heroin.

According to United States Attorney David J. Freed, Perez previously admitted to selling heroin to another person on July 2, 2014, in Hazleton. Perez sold slightly less than 100 grams of heroin, which is equivalent to just under 4,000 retail bags of heroin.

Perez was indicted by a grand jury in October 2014, following an investigation by the Federal Bureau of Investigation and the Scranton Police Department. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.

This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin.  Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.

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.

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COLUMBUS, Ohio – Darnell A. Reeves, 32, of Delaware, Ohio, was arrested today and charged federally with distributing fentanyl that caused at least one overdose death.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, U.S. Homeland Security Investigations (HSI), Delaware County Prosecutor Carol O’Brien, Delaware County Sheriff Russell L. Martin and other members of the Delaware County Drug Task Force announced the charges.

According to the complaint, investigators traced fentanyl, heroin and crack cocaine back to Reeves (also known as Bookie), after they responded to the scene of an overdose death in Ostrander, Ohio on February 28. The victim was found on a couch in a shed, slumped forward with a used syringe under him.

Reeves also allegedly provided the heroin to a second victim that caused two nonfatal overdoses in February 2018. On one occasion, medics reportedly gave the second victim four doses of Narcan.

Possession with the intent to distribute heroin and fentanyl that resulted in serious bodily injury and/or death carries a potential sentence of 20 years to life in prison.

“This case is an example of how all levels of law enforcement are working together to trace overdose deaths back to their alleged suppliers and prosecute in the most appropriate venue,” U.S. Attorney Glassman said. “We will continue to collaborate in order to combat the impact of fentanyl and heroin on our communities.”

“The charges against Mr. Reeves tragically illustrate how frequently these deadly drugs are claiming the lives of our community members, especially here in Ohio with over 4000 deaths each year since 2016,” said Steve Francis, HSI special agent in charge for Michigan and Ohio. “HSI is committed to stopping the flow of these highly dangerous drugs into our communities and holding those who distribute this poison accountable for their actions.”

U.S. Attorney Glassman commended the investigation of this case by HSI and the Delaware County Sheriff’s Office, as well as Deputy Criminal Chief Michael Hunter, who is prosecuting the case.

A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.

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Guilherme Alves De Melo (Alves), age 33, from Brazil, has been charged with one count of intimidating a flight crew member or attendant and lessening or interfering with their ability to perform their duties, in violation of federal law.­  The charge is contained in a Complaint filed June 26, 2018, in United States District Court in Cedar Rapids. 

­The Complaint alleges that, on or about June 23, 2018, Alves was a passenger on an international flight originating in Calgary, Canada and bound for Chicago, Illinois. It is further alleged that during the flight, Alves became disruptive and was told by a member of the flight crew that he needed to calm down. The flight attendant brought the disruptive conduct to the attention of the captain. About an hour before the flight was to arrive in Chicago, it is alleged that Alves again became disruptive and was scaring others passengers. Less than a minute later, Alves is alleged to have “lost it,” leading to some of the passengers needing to restrain him with zip ties provided by the flight crew. As a result, the flight was diverted to the Eastern Iowa Airport in Cedar Rapids after it had begun its final descent to Chicago. 

After the aircraft landed, the Cedar Rapids police removed Alves from the airplane.  However, Alves became loud and used expletives within sight and sound of other passengers and employees at the airport.  Alves was charged with disorderly conduct for these actions.  On June 24, 2018, defendant pleaded guilty to disorderly conduct and paid a $100 fine in Linn County District Court.

If convicted on the federal charge, Alves faces a maximum sentence of 20 years’ imprisonment, a $250,000 fine, and 5 years of supervised release following any imprisonment.

Alves appeared in federal court on June 28, 2018.  At that time, the court scheduled a detention hearing and a preliminary hearing for 11:00 a.m. on Monday, July 2, 2018. Alves was ordered detained without bond pending the detention hearing.

As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.

The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and investigated by Homeland Security Investigations.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-mj-00223.

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PITTSBURGH, PA - A Butler County woman has been indicted by a federal grand jury in Pittsburgh on charges of both wrongfully obtaining and disclosing the health information of another individual, United States Attorney Scott W. Brady announced today.

The six-count indictment, returned on June 28, named Linda Sue Kalina, 61, of Butler, Pennsylvania.

According to the indictment presented to the court, Kalina, while employed as a Patient Information Coordinator by the University of Pittsburgh Medical Center, and then by the Allegheny Health Network, wrongfully obtained health information, in violation of the Health Insurance Portability and Accountability Act (HIPAA), from March 30, 2016, through August 14, 2017, relating to 111 individual patients. The indictment also charges that on four occasions between December 30, 2016, and August 11, 2017, Kalina wrongfully disclosed the health information of three such individuals, with the intent to cause malicious harm.

The law provides for a maximum total sentence of 11 years in prison, a fine of $350,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Carolyn Bloch is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.

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

John H. Durham, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached settlement agreements with Ibiza Restaurant (“Ibiza”) and Mangos, LLC (“Mangos”) in Hamden, to resolve allegations that Ibiza was not operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).  Ibiza leases its premises from Mangos.

The settlement agreements resolve an ADA complaint filed by an individual with physical disabilities alleging that Ibiza did not meet the ADA’s requirements for accessibility.  Ibiza and Mangos are in the process of making the changes to the physical premises of Ibiza as required by the settlement agreements.  Mangos has committed to increasing accessible parking for Ibiza and its other commercial tenant, remediating the sidewalk from the parking area to the tenant business entrances, adding a ramp from the sidewalk to the tenant business entrances and ensuring that the tenant business entrances are accessible.  Ibiza has committed to increasing accessibility in the interior of the restaurant, including constructing an accessible restroom.  Mangos will continue to make improvements over the next year and Ibiza will make improvements over the next 18 months.

Under federal law, private entities that own or operate places of “public accommodation,” including restaurants, are prohibited from discriminating on the basis of disability.  The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities.  The Justice Department also is authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.

U.S. Attorney Durham noted that the owners of Ibiza and Mangos have cooperated with the U.S. Attorney’s Office to address the ADA issues without the need for litigation.

Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.

Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY).  More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.

This matter was handled by Assistant U.S. Attorney Jessica H. Soufer of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.

United States Attorney Erica H. MacDonald today announced the sentencing of ALEX REAVES LUNDIN, 26, to 24 months in prison for her role in a $1.1 million Ponzi scheme orchestrated by her husband, Jeremy Lundin. LUNDIN, who pleaded guilty on February 15, 2018, was sentenced yesterday before Judge Wilhelmina M. Wright in U.S. District Court in Saint Paul, Minnesota. When announcing the sentence, the Honorable Judge Wright told LUNDIN, “You assisted your husband in a lengthy and complex fraud scheme at the expense of others. Your victims worked hard for their money; for some it was their life savings. You spent victims’ money on yourself, motivated by selfishness and greed to live a lavish lifestyle that you could not afford.”

U.S. Attorney Erica MacDonald said, “Jeremy Lundin swindled hundreds of thousands of dollars from his friends and associates so that he and Alex Lundin could buy luxury cars and take expensive trips. When Alex Lundin found out about her husband’s fraud, rather than taking steps to stop him or make things right, she helped him keep it going for several more months. The Lundins lied to and stole from honest, hard-working individuals who trusted them. Today’s sentence was another step towards justice for those victims.”

“Alex Lundin used investor money for her personal, financial gain. The Lundin’s spent their client’s investment money to enjoy an extravagant and luxurious lifestyle,” stated Special Agent in Charge Gabe Grchan. “Today’s sentencing illustrates that there are consequences for those who use deceit to enrich themselves at the expense of others. IRS Criminal Investigators will continue to pursue individuals who engage in this type of criminal behavior.”

“Today’s sentencing of Ms. Lundin serves as a reminder of the potential penalty for violating the public’s trust in the U.S. mail”, said Craig Goldberg, Postal Inspector in Charge of the Denver Division which covers the Twin Cities.

“Alex Lundin and her husband defrauded friends and neighbors who trusted them with their life savings,” said Minnesota Commerce Commissioner Jessica Looman. “Investment fraud is a serious crime and this case shows that if you commit fraud in Minnesota, you will be prosecuted.”

According to the defendant’s guilty plea and documents filed in court, from approximately December 2014 through May 2017, Jeremy Lundin claimed that he conducted “options trading” through his business Big Island Capital. He worked through a network of the couple’s associates and friends to solicit investors by promising to generate exponential growth through options trading, and obtained $1.1 million from 51 investors over a roughly two-year period. Between May 2015 and May 2017, at least $992,000 in investor funds was deposited into Jeremy Lundin’s “Big Island Capital” bank account. During roughly the same time period, however, Jeremy Lundin transferred $933,950 from the business account directly into his and LUNDIN’s personal checking account. The couple then used the majority of those investor funds on their personal expenses including travel, luxury automobiles, a boat, jewelry, retail purchases, and more than $366,000 in credit card payments.

According to LUNDIN’s guilty plea and documents filed in court, LUNDIN admitted that by October 2016, she became aware that her husband was not conducting options trading as he promised investors, and that she and Jeremy Lundin had spent all of the investor funds on personal expenses. However, LUNDIN continued to assist her husband in carrying out the scheme for another eight months by soliciting new investors and drafting text messages and emails intended to lull current victim-investors into believing their money was safe. During those final eight months when LUNDIN knowingly participated in the scheme, investors gave Jeremy Lundin another $315,000.

Jeremy Lundin pleaded guilty to one count of mail fraud and one count of money laundering. On February 22, 2018, he was sentenced to 110 months in prison.

This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, Federal Bureau of Investigation, United States Postal Inspection Service, and Minnesota Department of Commerce Fraud Bureau.

Assistant United States Attorney Amber M. Brennan prosecuted the case.

Defendant Information:

ALEX REAVES LUNDIN, 26

Mound, Minn.

Convicted:

• Conspiracy to commit mail fraud, 1 count

Sentenced:

• 24 months in prison
• 3 years of supervised release
• $315,000 in restitution

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

In sympathy on the day of Bridgette Gentry Marshall’s funeral, U.S. Attorney Jay E. Town expresses condolences to her husband, Alabama Attorney General Steve Marshall, and their family:

“Today is another sad day for the Marshall family.  We pray in hope that the family, relatives, and friends of Bridgette have full providence during this difficult time.  The strength and character Steve has continued to show for his family, especially his daughter, Faith, while enduring this tragedy, has been a reassuring blessing to us all.”

            CONCORD – United States Attorney Scott W. Murray announced today that Imtiaz Shaikh, 46, of Manchester pleaded guilty to one count of wire fraud in connection with a scheme to defraud the State of New Hampshire. 

            According to court documents and statements made in court, Shaikh’s scheme involved the purchase of tobacco products other than cigarettes, referred to as “other tobacco products” or “OTP,” from various suppliers located in Pennsylvania.  Shaikh and others then transported the products to New Hampshire for sale to retail businesses.  In New Hampshire, wholesale distributors of OTP must be licensed and are required to file reports identifying the quantity of OTP sold each month.  During the period of the scheme identified in the charging document, New Hampshire taxed OTP at 65.03 percent of the wholesale sales price.  Shaikh avoided most of the licensing and reporting requirements by conducting business through a number of shell corporations.  Except for a single report filed in September 2014, Shaikh and the entities he created failed to pay the taxes owed to the State of New Hampshire.  The state lost an estimated $1.5 million in tax revenue as a result of the scheme.

             A sentencing hearing has been scheduled for October 16, 2018.  

            “Although no one likes to pay taxes, we all are required to follow the law,” said U.S. Attorney Murray.  “This defendant’s fraud scheme deprived the state of lawful tax revenue in order to enhance his personal income.  Those who choose to engage in schemes like this should understand that we are committed to the aggressive prosecution of individuals who engage in fraudulent conduct.”

            “The guilty plea entered today by Mr. Shaikh brings an end to his elaborate scheme to avoid paying taxes through the sale and distribution of tobacco products. The state of New Hampshire and its taxpayers are the really the ones who have suffered the consequences of his actions.  The FBI is committed to working with our law enforcement partners to stop this type of criminal activity, and make sure the taxpayers are made whole,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division.

            Mr. Shaikh’s tax evasion scheme increased the burden on New Hampshire’s law-abiding citizens, forcing them to make up the difference,” said Kristina O’Connell, Special Agent in Charge, IRS Criminal Investigation, Boston.  "Today, honest taxpayers have been reassured that no one is above the law.  We will continue to collaborate with our law enforcement partners on these important investigations to protect the integrity of the American tax system."

            The Federal Bureau of Investigation, the IRS, the New Hampshire State Police, the Manchester Police Department, the Salem New Hampshire Police Department, the Massachusetts State Police and the New Hampshire Department of Revenue Administration all participated in the investigation of this case.  Assistant United States Attorney Donald A. Feith prosecuted the case.

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GREAT FALLS –Jaycob Tyler Kutzera, 23, from Redlands, California, was sentenced yesterday in U.S. District Court.  U.S. District Court Judge Brian Morris sentenced Kutzera to  180 months’ imprisonment.  Upon his release, he will be on supervised release for 5 years.  Kutzera was also ordered to pay restitution to the victim.   

The case stems from a 2016 investigation.  In April 2016, the mother of a 12-year old girl contacted the Great Falls Police Department.  The mother, formerly of Great Falls, stated that she had looked through her daughter’s cell phone and saw sexually explicit communications between her 12-year old daughter and a male.  The mother also saw sexually explicit images.  During its investigation, the Great Falls Police Department determined the 12-year old girl engaged in sexually explicit communications with Kutzera via Facebook and other online applications.  Kutzera requested sexually explicit images of the girl during their online chats.  Great Falls Police Detective Jesse Slaughter traveled to California, seized Kutzera’s cellular phone and computer pursuant to a search warrant, and interviewed Kutzera.  During the interview, Kutzera admitted that he knew the girl was 12 years old, yet he continued to engage in the sexually explicit communications with her.   He also continued to receive images and videos of the child engaged in sexual conduct.  He also sent the child images of himself masturbating.  Kutzera’s conduct continued from April through October 2016. 

The case was prosecuted by Assistant U.S. Attorney Cyndee L. Peterson.  This case was investigated by members of the Montana Internet Crimes Against Children Task Force, the Great Falls Police Department, DHS-Homeland Services Investigations and FBI Regional Computer Forensic Laboratory.    This case was initiated under the Department of Justice’s Project Safe Childhood initiative which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children.  Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation.  It is implemented through partnerships including the Montana Internet Crimes Against Children (ICAC) Task Force.  The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children. 

CONTACT:      Barbara Burns
PHONE:         (716) 843-5817
FAX:            (716) 551-3051

BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Robert Hall, 42, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, was sentenced to serve 87 months in federal prison by U.S. District Judge Richard J. Arcara.

Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that on May 13, 2016, law enforcement officers seized three packages containing cocaine that were shipped from Texas to Buffalo to various recipients. The cocaine was hidden inside air purifiers. Officers seized two of the packages before they were delivered and set-up controlled deliveries to addresses on Tyler and Custer Streets in Buffalo. The three packages contained a total of five kilograms of cocaine. Hall paid the recipients of the packages in money or crack cocaine so they would receive the packages for Hall and co-defendant Clarence Adams.

Adams was previously convicted and sentenced to serve 250 months in federal prison.

Today’s sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast; and the Cheektowaga Police Department, under the direction of Chief David Zack.

PHILADELPHIA – U.S. Attorney William M. McSwain announced that Allentown attorney Scott Allinson, 55, was sentenced today to 27 months in federal prison. In March, a federal jury convicted Allinson on conspiracy and bribery charges.  Evidence presented at trial showed that Allinson and others engaged in a pay-to-play scheme with Allentown Mayor Ed Pawlowski to trade campaign contributions for the City of Allentown’s legal work. United States District Judge Juan Sanchez accepted the government’s recommendation and ordered that Allinson be taken into the custody of the U.S. Marshals immediately following the sentencing proceeding.

The jury heard numerous recorded conversations in which Allinson revealed his personal financial stake in the conspiracy.  One particularly telling conversation occurred on February 3, 2015, and involved Allinson, Michael Fleck, and Sam Ruchlewicz, two of Pawlowski’s political consultants at the time.  In that meeting, Allinson pitched the idea that his firm would get legal work from the City and Allinson would receive billing credit for it, and in return, Allinson would ensure political contributions flowed to Mayor Pawlowski. Through secretly recorded tapes, the jury heard Allinson’s own words—unvarnished, raw, and explicit—and the jury found his guilt beyond a reasonable doubt:

“If I get a hundred percent of the [billing] credit that turns into money, [and] that goes out of my checkbook where you want it to go. So, if it [work] comes to me and I get billing credit, then I get the full stack of cash . . . to do with it what I need to do, annually. Do you know what I’m saying to you? If it goes to anyone else but me, it will get [expletive].”

Later in that conversation, Ruchlewicz and Allinson further nailed down the quid pro quo: Ruchlewicz advised that Mayor Pawlowski wanted a $10,000 contribution from Allinson for the year, and Allinson responded, “That’s easy.”  Ruchlewicz then assured Allinson, “All the work will come to you. The work will be yours.”  In several other recorded conversations, the jury heard further evidence that Pawlowski, Ruchlewicz, and Allinson understood what was at stake and understood the link between political contributions and legal work.

“This particular brand of criminal behavior is a cancer on our system of laws.  Political corruption erodes the public’s trust in government and elected officials,” said U.S. Attorney McSwain. “It is our job to find it and stop it, which is exactly what we did in this case. This defendant cast aside the virtues of hard work and honest pay in favor of an easy buck, and it earned him a well-deserved spot in a prison cell.”

"Scott Allinson saw no problem scoring legal work through blatantly illegal means," said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. "Every dirty dollar that he funneled to Edwin Pawlowski as a quid pro quo deepened the culture of corruption in Allentown City Hall, and cheapened the role of the mayor's office. Cases like this only fuel the FBI's commitment to tackling public corruption." 

The case is being investigated by the Federal Bureau of Investigation, Internal Revenue Service - Criminal Investigation and Pennsylvania State Police. It is being prosecuted by Assistant United States Attorneys Michelle Morgan and Anthony Wzorek of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.

CONTACT:      Barbara Burns
PHONE:         (716) 843-5817
FAX:            (716) 551-3051

ROCHESTER, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Michael Beers, 68, of Rochester, NY, who was convicted of making a false statement to an FBI special agent, was sentenced to serve 60 months in federal prison by U.S. District Judge Charles J. Siragusa.

Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that in February 2017, the FBI conducted a child pornography investigation during which an undercover agent downloaded four videos of child pornography directly from a device using an IP address belonging to the defendant at his residence on Lake Avenue in Rochester.

On March 10, 2017, the FBI executed a search warrant at Beers’ residence. Agents located a computer which contained file titles consistent with child pornography. The defendant was questioned regarding his use of the computer, at which point Beers willfully made materially false statements to FBI Agents. Specifically, the defendant denied having access to or using the computer, denied knowing the password for the computer, and denied that child pornography had been accessed, inadvertently or otherwise, on the computer. In reality, the defendant used the computer, personally set the password for computer, and had seen child pornography on the computer.

The sentencing is the culmination of an investigation on the part of Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.

CONTACT:      Barbara Burns
PHONE:         (716) 843-5817
FAX:            (716) 551-3051

BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Marcel Worthy, aka Cheese, 32, of Buffalo, NY, who was convicted of racketeering conspiracy involving five kilograms or more of cocaine and murder, and conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, was sentenced by U.S. District Judge Richard J. Arcara to serve 240 months in federal prison.

Assistant U.S. Attorneys Wei Xiang and Paul Parisi, who handled the case, stated that on December 17, 2006, Worthy and an associate were involved in a confrontation with a group of individuals at a gas station at Grider Street and East Delavan Avenue in Buffalo.  As the individuals walked away, the defendant drove after them. Seeing the individuals in the vicinity of 82 Durham Avenue, Worthy stopped his vehicle and his associate shot and killed Kevin Gray. In addition to participating in the murder of Kevin Gray, the defendant also sold marijuana.

The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, was responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine, and marijuana. The Schuele Boys Gang was also responsible for the murder of Quincy Balance in August 2012.

Worthy is one of 28 Schuele Boys Gang members and associates arrested and convicted in this case.

The sentencing is the result of an investigation by the FBI Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; and the New York State Police, under the direction of Major Edward Kennedy. Additional assistance was provided by the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn; the Edinboro University Police Department in Pennsylvania; the West Tennessee Judicial Drug Task Force; the City of McAllen, Texas Police Department; HSI Harlingen, Texas; and the FBI offices in Houston, Texas and Jackson, Mississippi.

MISSOULA – Shane Courtney, 50, of Great Falls, Montana, was sentenced today to 66 months in prison for possession of child pornography. Courtney pleaded guilty January 24, 2018 to one count of possession of child pornography.  Courtney admitted that from June 2005 through February 28, 2017, he possessed child pornography.  Federal agents discovered his child pornography collection after they searched his residence in February 2017.  At that time, Courtney was residing in Anaconda with his wife and children.   Agents seized computers and storage devices that were later examined by the Intermountain West Regional Computer Forensics Laboratory in Billings.   A Certified Forensic Examiner determined that Courtney possessed numerous files depicting child pornography including images of prepubescent children.

In addition to the prison term, U.S. District Court Judge Dana L. Christensen ordered Courtney to pay a $100 special assessment and ordered 15 years of supervised release.

This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children.  Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation.  It is implemented through partnerships including the Montana Internet Crimes Against Children (ICAC) Task Force.  The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children. 

The case was investigated by Federal Bureau of Investigation and U.S. Immigration and Customs Enforcement Homeland Security Investigations.  Both federal agencies are members of the Montana Internet Crimes Against Children Task Force.  The case was prosecuted by Assistant United States Attorney Cyndee L. Peterson.

CONTACT:      Barbara Burns
PHONE:         (716) 843-5817
FAX:            (716) 551-3051

ROCHESTER, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Justin Potts, 36, of Rochester, NY, was charged by criminal complaint with unauthorized access of a protected computer. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.

Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that according to the complaint, in March 2017, the Rochester Police Department alerted the FBI’S Cyber Task Force about the defendant who had been arrested for using his mobile phone to take pictures of women in various stages of undress at multiple tanning salons in Rochester.

Subsequent investigation determined that Potts’s computer storage devices contained approximately 450 computer files which contained indications that the defendant gained unauthorized access into various women’s password protected digital accounts.

Potts conducted a multi-year, multi-state, campaign to access the online accounts primarily associated with young women. Once the defendant successfully gained access to a victim’s online account, he would routinely continue accessing additional accounts for the same victim. Potts appeared to target university and personal email accounts, Facebook accounts, Apple iCloud accounts, and online password managers. An examination of one of the defendant’s hard drives found many files that contained nude or partially nude or revealing images of some of the young women whose accounts he hacked. Investigators also found nude images of celebrities, images believed to be downloaded from file sharing sites.

Investigators believe 150 victims were targeted as a result of the computer intrusion scheme orchestrated by Potts.

The defendant made an initial appearance on June 28, 2018, before U.S. Magistrate Judge Marian W. Payson and is being detained.  

The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

PITTSBURGH – William Harvey Scott, Jr., aka "PacMan", pleaded guilty in federal court to multiple charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.

Scott, age 27, formerly of Munhall, Pennsylvania, pleaded guilty to three felony counts before United States District Judge Cathy Bissoon.

The court was advised that Scott sold the manmade opiate fentanyl, in stamp bags marked "LIZZ" to a female on July 13, 2016 and that this woman died as a result. Law enforcement located the victim’s cellphone and determined that she had been purchasing drugs from a person she labelled as "Chris Man." Law enforcement used the victim’s phone to text "Chris Man" and asked him to meet and sell more of the drugs. When Scott appeared at the prearranged location, he was found to possess more stamp bags of fentanyl marked "LIZZ".

During his guilty plea, the defendant specifically admitted to selling the fentanyl and to causing the July 2016 death of the young woman. During the guilty plea hearing, the defendant specifically agreed to pay restitution to the victim’s family.

Judge Bissoon scheduled sentencing for October 22, 2018, at 10 a.m. The defendant was remanded to jail, pending his sentencing hearing.

Defendants charged with these types of felony drug offenses face a maximum sentence of 20 years in prison and at least six years of supervision by the United States Probation Office. The actual sentence imposed will be based upon information that includes the defendant’s criminal, family, educational and work histories.

Assistant United States Attorney Ross E. Lenhardt, a federal prosecutor with the Violent Crime and Major Crime Sections of the U.S. Attorney’s Office, is prosecuting this case on behalf of the government.

Special Agents and Task Force Officers from the Drug Enforcement Administration, and law enforcement officers from the Duquesne Police Department, Homestead Police Department, and Allegheny County Sheriff’s Office, conducted the investigation that led to the prosecution of the defendant.

United States Attorney Brady noted that the investigation was funded by the federal Organized Crime Drug Enforcement Task Force program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal, state, and local agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.