BILLNGS—U.S. Attorney Kurt G. Alme announced today that Lance X. Ratcliff, a Billings resident, was sentenced on Tuesday to 15 months in prison and three yearssupervised release for illegally possessing a shotgun that was found between the mattress and box spring of his bed.

U.S. District Judge Susan Watters presided at sentencing.

Ratcliff pleaded guilty in June to being a prohibited person in possession of a firearm.

The investigation began in March 2018 after Ratcliff provided a urine sample to the Montana Department of Corrections, Billings Probation and Parole Office as part of conditions of supervision in a Wyoming case. Ratcliff had been convicted of felony possession of cocaine in Wyoming in 2017. The drug test result was positive, which led to a search of Ratcliff’s residence.

During the search, law enforcement officers recovered a 12 gauge pump action shotgun, which was loaded with five rounds of ammunition, from between the mattress and box spring of the bed in Ratcliff’s bedroom. Officers also recovered a box of 12 gauge shotgun ammunition from a closet. The Bureau of Alcohol, Tobacco, Firearms and Explosives determined that the shotgun had been stolen from a Billings resident in April 2014.

Assistant U.S. Attorney Tom Godfrey prosecuted the case, which was investigated by the ATF.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together federal, state, local and tribal law enforcement agencies and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.  The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals.

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BOISE - Sara Beth Cummings, 36, of Boise, Idaho, and Candelaria Sanchez, 43, of Las Vegas, Nevada, were sentenced today in U.S. District Court for their roles in a drug trafficking conspiracy, U.S. Attorney Bart M. Davis announced.  Senior U.S. District Court Judge Edward J. Lodge sentenced Cummings to 21 months, and Sanchez to 84 months, in prison.  Judge Lodge also ordered that both serve a period of supervised release after their prison sentences.

According to court records, between February and March 2018, Sanchez worked with others to distribute large quantities of methamphetamine in the Boise area.  Investigators learned that Sanchez was driving large loads of methamphetamine from Las Vegas to Boise, where she delivered it to a dealer who was living with Cummings.  On March 15, 2018, investigators stopped Sanchez outside of Cummings’ home, seizing 13 pounds of methamphetamine from her vehicle.  In Cummings’ home, officers found more methamphetamine and over $40,000 in cash.  Investigators determined that Cummings allowed her home to be used to conceal the drug trafficking conspiracy.

In July of this year, Sanchez pled guilty to conspiracy to distribute methamphetamine.  In September of this year, Cummings pled guilty to misprision of a felony.

The case was the result of a joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF), which includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; and the U.S. Marshals Service.  Along with the Drug Enforcement Administration, the Nampa Police Department, Boise Police Department, Ada County Sheriff’s Office, and Meridian Police Department investigated the case.

The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies.  The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

This case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board.  The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada and Canyon County.

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EUGENE, Ore.—Curran Millican Manzer, 37, of Springfield, Oregon, pleaded guilty today to a single count of possession with intent to the distribute marijuana after repeatedly shipping marijuana out of state.

“Illegal export continues to plague Oregon’s under regulated and insufficiently enforced state laws governing state-licensed marijuana. The extreme overproduction of marijuana in Oregon has prompted many individuals to seek out-of-state distribution opportunities to recoup the costs of both illegal and legal in-state production. Disrupting these interstate distribution channels remains a priority of our office,” said Billy J. Williams, U.S. Attorney for the District of Oregon.

According to court documents, in September 2017, the Springfield Police Department began an investigation after being contacted by United Parcel Service (UPS) regarding several packages Manzer shipped to Oklahoma City, Oklahoma that had a strong marijuana odor. UPS later confirmed that, in October 2017, Manzer sent several additional packages next day air to Oklahoma City also believed to contain marijuana. During the same time period, several packages containing numerous stacks of cash bound in $1,000 increments were sent to Manzer’s home address in Springfield.

In November 2017, Springfield Police obtained a search warrant for all packages sent or received by Manzer via UPS. Shortly thereafter, an officer was conducting surveillance at a UPS store in Springfield when he saw Manzer arrive in a pickup truck with “Curran’s Taxidermy” written on the side. The officer observed Manzer bringing six packages into the store, which he dropped off for next day shipment to Oklahoma. A Springfield Police canine unit responded to the scene and the canine alerted to the packages.

The Springfield Police officer executed a search warrant on the packages and located six large Styrofoam rocks containing 143 pounds of marijuana.

Manzer faces a maximum sentence of 20 years in prison, a $1 million fine and a three-year term of supervised release. He will be sentenced on February 26, 2019 before U.S. District Court Judge Ann Aiken.

As part of the plea agreement, Manzer agrees to forfeit any criminally-derived proceeds and property used to facilitate his crimes identified by the government prior to sentencing.

This case was investigated by the Springfield Police Department and the U.S. Drug Enforcement Administration (DEA). It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.

NEWS RELEASE SUMMARY– November 20, 2018

SAN DIEGO – Following a two-week trial, a jury returned guilty verdicts on all counts against finance executive Peter Cash Doye and notary public and real estate broker Raquel Reid for their roles in a massive real estate fraud scheme that generated nearly $50 million in fraudulently-obtained loan proceeds.

The evidence presented at trial demonstrated that Doye and Reid defrauded lenders into making enormous loans against four multi-million dollar mansions in La Jolla and Del Mar, then used forged documents to make it appear that the loans had been paid off so they could obtain additional loans from new lenders who believed the mansions were owned “free and clear.”

Doye, a senior executive at the real estate investment firms Conix, Inc. and Variant Commercial Real Estate (“VCRE”), negotiated the financing from unsuspecting lenders and investors based on a host of lies about the collateral used to secure the loans.  To pull of the scam, Doye, Reid, and their co-conspirators created forged real estate lien “releases” and recorded fraudulent records at the San Diego County Recorder’s Office, complicating the chain of title for these homes.  Reid notarized the forged documents, helping to make the fraudulent paperwork appear authentic. 

Doye’s business partner Courtland Gettel and Arizona attorney Jeffrey Greenberg previously pleaded guilty to participating in the scheme, and are serving sentences of 135 and 81 months, respectively. Gettel and Greenberg were also ordered to pay more than $43 million in restitution to victims, and to forfeit the proceeds of the crime.  Gettel was the owner of Conix and VCRE, which refurbished single-family homes, purchased distressed debt, and purchased and refurbished commercial real estate projects.

During trial, the government proved that Gettel, Greenberg, and Doye acquired the high-end homes in La Jolla and Del Mar by claiming they would be used as luxury rentals and investment properties—although in fact, Gettel and Doye lived in the properties along with their families. When they needed money to fund other business deals, Gettel and Doye began negotiating with new lenders, pretending that the first loans never existed or had already been paid off.  Greenberg admitted that he used his expertise as a lawyer to generate and record fraudulent records, making it appear that prior loans were paid off and helping to close the fraudulent deals. 

In late 2014, the lenders began to uncover the fraud and learn that their secured interests in the properties were worthless.  In response to questions from these lenders, Doye, Reid and Gettel denied knowing anything about the fraudulent loans, and created yet more fraudulent documents to cover their tracks. For example, Reid destroyed her notary book and cut up her notary stamp, and then falsely reported to the California Secretary of State that her book had been lost.

“These defendants attempted to use their significant real estate experience to pull off an egregious fraud that created serious consequences for lenders and title owners,” said U.S. Attorney Adam Braverman.  “As this case demonstrates, federal prosecutors are fully committed to protecting the integrity of our lending system by holding such criminals accountable.”

“The FBI will pursue each criminal participant in these sophisticated, multi-million dollar fraud schemes until final justice is served.” said FBI Special Agent in Charge John Brown. “Today, Peter Doye and Raquel Reid join co-conspirators Courtland Gettel and Jeffrey Greenberg as convicted felons for their roles in this massive loan fraud scheme.”

United States District Judge William Q. Hayes remanded both Doye and Reid into custody following the guilty verdicts, and set their sentencing hearings for March 4, 2019, at 9:00 am.  

This case is being prosecuted by Assistant United States Attorneys Emily Allen and Andrew Young.

DEFENDANTS

Peter Cash Doye                                             Age: 41                       San Diego, CA

Raquel Reid                                                    Age: 38                       San Diego, CA

CHARGES

Count One (both defendants): Wire and Mail Fraud Conspiracy, in violation of 18 U.S.C. § 1349

Maximum Penalties: 20 years’ imprisonment, $250,000 fine, or twice the gross gain or loss caused by the offense, $100 special assessment, restitution, forfeiture

Counts Two through Six (Doye only; both defendants as to Count Three): Wire Fraud, in violation of 18 U.S.C. § 1343

Maximum Penalties as to each count: 20 years’ imprisonment, $250,000 fine, or twice the gross gain or loss caused by the offense, $100 special assessment, restitution, forfeiture

Counts Seven through Nine (Doye only as to Count Seven, both defendants as to Counts Eight and Nine): Mail Fraud, in violation of 18 U.S.C. § 1341

Maximum Penalties as to each count: 20 years’ imprisonment, $250,000 fine, or twice the gross gain or loss caused by the offense, $100 special assessment, restitution, forfeiture

Counts Ten and Eleven (both defendants): Aggravated Identity Theft, in violation of 18 U.S.C. § 1028A

Maximum Penalties: mandatory 2 years’ imprisonment, consecutive to any other term of imprisonment, $250,000 fine, $100 special assessment, restitution.

Count Twelve (Reid only): False Statements to Federal Agents, in violation of 18 U.S.C. § 1001

Maximum Penalties: 5 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.

DEFENDANTS PREVIOUSLY CHARGED

Jeffrey Greenberg, 16CR1076-WQH and 1077-WQH          Age: 67           Tucson, AZ

Courtland Gettel, 16CR1099-WQH                                       Age: 43           Coronado, CA

AGENCY

Federal Bureau of Investigation

LAS VEGAS, Nev. – A Henderson woman pleaded guilty today to distributing fentanyl that resulted in the overdose death of a person in 2017, announced U.S. Attorney Dayle Elieson for the District of Nevada and Assistant Special Agent in Charge Daniel W. Neill for the DEA.

Tianna Christina Cordova, 35, pleaded guilty to one count of distribution of a controlled substance. She was charged by a superseding indictment in August, along with co-defendant Robert James Thornburg.

On June 21, 2018, law enforcement executed a search warrant at Cordova and Thornburg’s residence in Henderson. Law enforcement found varied amounts of oxycodone, hydrocodone, alprazolam, four firearms, and cash. She and Thornburg, neither of whom are doctors, conspired with each other to distribute oxycodone and amphetamine (Adderall) to individuals. Often Cordova would sell narcotics to individuals who contacted her via the internet, where she would post ads for sale using coded language for the availability of certain drugs. Cordova admitted that, on March 14, 2017, she unlawfully distributed a controlled substance in the form of prescription pills that contained fentanyl to an individual. That person ingested the pills which resulted in her death from multiple drug intoxication, namely from an overdose of fentanyl, acetyl fentanyl, and citalopram.

United States District Judge Richard F. Boulware II accepted the guilty plea and set a sentencing hearing for February 21, 2019. The maximum penalty is 20 years and a $1,000,000 fine.

Fentanyl is a synthetic opioid that is 80-100 times stronger than morphine and 50 times stronger than heroin. Street names include “China Girl,” “King Ivory,” and “Murder 8.”  Fentanyl is added to heroin to increase its potency, or be disguised as highly potent heroin. Many users believe that they are purchasing heroin and actually don’t know that they are purchasing fentanyl – which often results in overdose deaths. 

The case was investigated by the DEA, with assistance from the Clark County Coroner’s Office. Assistant U.S. Attorney Brandon C. Jaroch is prosecuting the case.

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SAN FRANCISCO – Richard Rood was sentenced today to 150 months in prison for possession of child pornography, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John Bennett. The sentence was handed down by the Honorable William H. Alsup, United States District Judge.

Rood, 74, of Eureka, pleaded guilty to the charge on September 4, 2018. According to the plea agreement, Rood admitted he used publicly available computers at the Humboldt County Library to locate, view, and save images and videos depicting minors engaged in sexually explicit conduct. Rood saved the images and videos to his personal email accounts and he also emailed the images and videos to his cellular phone.  Using email, Rood also traded images and videos of minors engaged in sexually explicit conduct with others. He admitted that he possessed 230 images and 10 videos of minors engaged in sexually explicit conduct.  Some of the images and videos, Rood admitted, depicted sadistic or masochistic portrayals of minors as young as 5 years of age.  Further, Rood admitted he obtained and sent images to minors by email.  

A federal grand jury indicted Rood on May 31, 2018, charging him with one count each of distribution, receipt and possession of child pornography, in violation of 18 U.S.C §§ 2252(a)(2) and 2252(a)(4)(B). Pursuant to his plea agreement, Rood pleaded guilty to the possession charge and the remaining charges were dismissed.  The possession charge, in light of Rood’s history, carried a mandatory minimum sentence of 120 months in prison.

In addition to the prison term, Judge Alsup sentenced the defendant to a 10-year period of supervised release. Rood already is a registered sex offender.  The defendant has been in custody since his arrest in July of 2018 and will begin serving his sentence immediately.

Assistant U.S. Attorney Jonathan U. Lee is prosecuting the case with the assistance of Kimberly Richardson. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Humboldt County Sheriff’s Office. 
 

          LOS ANGELES– A federal grand jury today named a Hawthorne man in a 14-count indictment that alleges he intentionally drove his family into the water at the Port of Los Angeles in a scheme to collect proceeds of life insurance policies he had purchased on their lives.

          Ali F. Elmezayen, 44, was charged with four counts of mail fraud, four counts of wire fraud, one count of aggravated identity theft and five counts of money laundering. Elmezayen remains in federal custody after being arrested on November 7 by the FBI.

          The indictment alleges that Elmezayen purchased several life and accidental death insurance policies providing coverage on himself, his domestic partner and their three children in 2012 and 2013. Elmezayen then drove a car with his partner and two youngest children off a wharf at the Port of Los Angeles on April 9, 2015. Elmezayen swam out the open driver’s side window of the car. Elmezayen’s partner, who did not know how to swim, escaped the vehicle and survived when a nearby fisherman threw her a flotation device. The two children, who were 8 and 13, drowned in the car.

          Elmezayen then collected more than $260,000 in insurance proceeds from Mutual of Omaha Life Insurance and American General Life Insurance on the accidental death insurance policies he had taken out on the children’s lives, according to the indictment.

          An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

          Elmezayen is scheduled to be arraigned on the indictment on November 29 in United States District Court.

          If he were to be convicted of all the charges contained in the indictment, Elmezayen would face a statutory maximum sentence of 212 years in federal prison.

          This case is being investigated by the Federal Bureau of Investigation and IRS Criminal Investigation. The federal investigators received substantial assistance from the Los Angeles Police Department, the Los Angeles Port Police and the Los Angeles City Attorney’s Office.

          The case is being prosecuted by Assistant United States Attorneys Alex Wyman and David Ryan.

A nurse from Edmond, Oklahoma, has agreed to pay the United States $130,000 for allegedly accepting illegal kickback payments from Oklahoma Compounding.

United States Attorney Trent Shores announced today that his office has entered into a settlement agreement with V. Erin Files, an Advanced Practice Registered Nurse, in order to recoup losses to the United States resulting from the illegal kickbacks.  This civil settlement resulted from an investigation into numerous healthcare providers writing prescriptions for pain creams compounded and sold by Oklahoma Compounding.

In 2013, Files prescribed these pain creams for her patients, facilitating the sale and distribution of the creams. As compensation for her services, Oklahoma Compounding, paid Files what was characterized by the parties as “medical director fees” based upon an hourly rate. However, the payments Files received from the company were, in actuality, “kickbacks.” Because some of her patients were insured by TRICARE, the health care program of the U.S. Department of Defense Military Health System for military service members and retirees, the kickbacks were in violation of the False Claims Act. It is illegal to pay or receive kickbacks in conjunction with federal healthcare insurance. 

Prohibitions against kickbacks are crucial to ensure that financial motives do not undermine the medical judgment of physicians and other health care providers.  The civil False Claims Act is an important tool used to protect the integrity of taxpayer-funded health care programs.

“Unfortunately, abuse and exploitation of federal healthcare programs happens. The False Claims Act is one of the tools we use to hold accountable individuals, health care providers, and companies who illegally take money from the coffers of our federal healthcare system,” said U.S. Attorney Trent Shores. “It is unacceptable that Ms. Files received kickbacks as part of her work with a federal healthcare program that supports our military service men and women and their families. This U.S. Attorney’s Office is committed to working with our state and federal partners to investigate those abusing the system. I appreciate the dedicated work of the investigators and attorneys from my Affirmative Civil Enforcement team who brought this case.”

The agreement resolves allegations that Ms. Files had an illegal financial relationship with Oklahoma Compounding, concerning pain creams in 2013.

This matter was handled by Assistant U.S. Attorney Marianne Hardcastle and is the product of a collaborative investigation by the FBI, the U.S. Department of Health & Human Services- Office of Inspector General, the Department of Defense- Defense Criminal Investigative Service, the Drug Enforcement Administration, the United States Postal Inspection Service, the Oklahoma Attorney General’s Office, the Oklahoma State Board of Pharmacy, the Oklahoma State Board of Medical Licensure and Supervision and the Food and Drug Administration- Office of Criminal Investigation.  The claims resolved by the settlement are allegations only; there has been no determination of liability

Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that an Anchorage man has been sentenced to federal prison for his role in a conspiracy to distribute methamphetamine and heroin in Alaska.

Khamsay Xayamonty, 35, of Anchorage, was sentenced today by Chief U.S. District Judge Timothy M. Burgess, to serve nine years in prison, followed by five years of supervised release, after previously pleading guilty to one count of drug conspiracy.  Xayamonty also agreed to forfeit all rights to $40,000 in drug proceeds that had been seized during the course of the investigation. 

Xayamonty’s co-conspirator, Chakaphong Chantha, 30, of Anchorage, was previously sentenced to serve seven years in prison, followed by three years of supervised release, after previously pleading guilty to one count of drug conspiracy. 

According to court documents, sometime between April 2015 and continuing to June 2016, Xayamonty, Chantha, and others entered into an agreement to obtain controlled substances, including methamphetamine and heroin, from sources in California, for distribution in Alaska.  Part of Xayamonty’s role in the conspiracy was to transport money he received from others in Alaska to the source of supply in California.  At the time of Xayamonty’s arrest in June 2016, he was found traveling with a case full of firearms, including one with an obliterated serial number, as well as $40,000 in admitted drug proceeds.

This case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF).  The U.S. Postal Inspection Service (USPIS), the Drug Enforcement Administration (DEA), the Alaska State Troopers (AST), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the successful prosecution of this case.  This case was prosecuted by Assistant U.S. Attorney Stephan A. Collins.

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jason Ehrhart, age 48, of Thompsontown, Pennsylvania, pleaded guilty today before Chief United States District Court Judge Christopher C. Conner for defrauding a disabled Veteran, the Department of Veteran’s Affairs (VA), and the Social Security Administration (SSA) out of $316,360.

According to United States Attorney David J. Freed, Jason Ehrhart was charged by way of a criminal information on October 29, 2018, with one count of health care fraud. Jason’s former wife, Laurie Ehrhart, age 48, of Newport, Pennsylvania, was indicted on October 24, 2018, with one count of health care fraud and one count of conspiracy to commit health care fraud. The charges against the couple relate to their misappropriation of a veteran’s disability benefits.

In 1985 while serving in the U.S. Army, a veteran who was a former resident of Perry County, Pennsylvania, was diagnosed with multiple sclerosis.  In 1998 the veteran began receiving disability benefits from the (VA and in 2006 began receiving disability benefits from the SSA. The veteran was eventually hospitalized on a permanent basis at the VA hospital in Lebanon, Pennsylvania in November of 2004. 

In August of 2006, the veteran was deemed by the VA to be incompetent to handle his own financial affairs.  As a result, on October 2, 2006, Jason Ehrhart applied to serve as the veteran’s VA Fiduciary and Legal Custodian.  Under the terms of a Fiduciary Agreement, Jason Ehrhart agreed to use all of the veteran’s VA disability benefits exclusively for the veteran’s benefit. The agreement warned him that the funds were not for his personal use. The Fiduciary Agreement also required Jason Ehrhart to submit an annual accounting to the VA with respect to the amount of money spent on the veteran’s behalf.

While Jason Ehrhart served as the veteran’s VA Fiduciary and Legal Custodian, all of the veteran’s VA benefits, plus most of his Social Security disability checks, were deposited into a checking account Jason opened at The Orrstown Bank.  Altogether, $476,260 in federal benefits ($422,828 in VA disability, $48,187 in Social Security disability, and $5,244 in VA clothing allowance) were deposited into the account between January 2009 and August 2016.

According to Jason Ehrhart’s criminal information and Laurie Ehrhart’s indictment, at least $316,360 of the $476,260 was misappropriated by Jason and Laurie Ehrhart and converted to their own use between October 2006 and August 2016.  Checks totaling $218,832 ($96,202 payable to Jason Ehrhart and $122,630 payable to Laurie Ehrhart), were drawn against the account.  Of the $218,832, $157,742 was deposited into Jason and Laurie Ehrhart’s joint checking account at the Juniata Valley Bank (JVB) and at least $23,496 was converted to cash.  Thereafter, the funds in the joint JVB account were employed by Jason and Laurie Ehrhart to pay their personal expenses. 

Another $7,174 in checks were made payable to Jason and Laurie Ehrhart’s two minor children.  According to the charges Jason Ehrhart instructed the children to take the checks to the bank, cash them, and to surrender the cash to him.

Another $19,890 in checks were made payable to another couple who were Jason and Laurie Ehrhart’s best friends.  According to the charges Jason Ehrhart regularly treated the couple and their children to dinners out and at least two, all-expense paid vacations to Disney World in Florida, purchased two automobiles for the family, and paid for the wife’s dental work.

To conceal his embezzlements, Jason Ehrhart submitted eight false annual accountings to the VA in which he falsely claimed he spent $402,408 on the veteran’s behalf between October 2006 and October 2015.  The itemized expenditures in the accountings were grossly inflated. For example, Jason Ehrhart claimed he paid the mortgage on the veteran’s residence ($1,631 per month) plus the veteran’s share of the mortgage on his mother’s residence ($881) after she died in May 2011.  However, the lenders against both properties obtained judgments and they were eventually foreclosed and sold.

Jason Ehrhart also falsely claimed in the annual accountings that he spent thousands on miscellaneous expenditures for the veteran, including storage unit rentals, vehicle maintenance bills, state and local taxes, life and auto insurance, and credit card bills.  However, in 2016 the veteran’s specially equipped wheelchair van, for which Jason Ehrhart claimed he spent approximately $32,395 for vehicle maintenance, was found broken down and abandoned along a Perry County roadside.

The veteran died at the Lebanon VA Medical Center on July 30, 2018. 

Jason Ehrhart agreed to make full restitution of the monies owed to the veteran’s estate. No date was set by Chief Judge Conner for Jason Ehrhart’s sentencing pending preparation of a presentence report.  Laurie Ehrhart is currently scheduled for trial on January 8, 2019.  

The Department of Veteran Affairs, the Office of Inspector General, the Pennsylvania State Police, and the Social Security Administration’s Office of Inspector General investigated the case.  Assistant United States Attorney Kim Douglas Daniel is prosecuting the case.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The maximum penalty under federal law for this offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

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Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Elder Jose Cruz-Arteaga, 45, a citizen of Honduras, pled guilty in federal court to illegally re-entering the United States after having been deported. 

Evidence presented to the court showed that Cruz was encountered by Immigration and Customs Enforcement (ICE)- Enforcement Removal Operations (ERO) agents on July 22, 2018, while he was incarcerated at the Alvin S. Glenn Detention Center in Columbia on unrelated charges. In 2002, Cruz was convicted of Felony Possession of a Controlled Substance (heroin) in Colorado, then deported. He reentered the United States, and in 2004 he was convicted of Felony Possession/Purchase for Sale Narcotics (cocaine) in California and deported again. 

Cruz faces a maximum penalty of 20 years in federal prison.  Chief United States District Judge Terry L. Wooten accepted the guilty plea and will sentence Cruz after receiving and reviewing a presentence report prepared by the United States Probation Office.

The case was investigated by agents of ICE-ERO, which is a part of the Department of Homeland Security.  Assistant United States Attorney William E. Day, II, of the Columbia office is prosecuting the case.

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WICHITA, KAN. – A Hutchinson man was sentenced Tuesday to 90 months in federal prison for downloading child pornography from the internet, U.S. Attorney Stephen McAllister said.

Shane Ragsdale, 31, Hutchinson, Kan., pleaded guilty to one count of receiving child pornography. In his plea, he admitted he used a peer-to-peer file-sharing network to download child pornography.

McAllister commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.

BOSTON – The co-owners of a Boston-area home healthcare company pleaded guilty in federal court in Boston yesterday for underreporting income to the IRS resulting in over $1 million in losses.

Hannah Holland, 51, of Quincy, and Sheila O’Connell, 51, of North Weymouth, pleaded guilty to an Information charging them with one count of conspiracy to defraud the United States and three counts of aiding and assisting in the preparation of false tax returns. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing to Feb. 13, 2019.

According to court documents, Holland and O’Connell co-owned and operated Erin’s Own Home Healthcare Inc. (“Erin’s Own”), a home healthcare business. Between 2010 and 2014, Holland and O’Connell cashed over $3.5 million of Erin’s Own business checks through nominee bank accounts controlled by an unnamed individual. During this time period, Holland also personally cashed over $77,000 of Erin’s Own business receipts. None of these funds were ever reported to the IRS or accounted for in the company’s tax filings. Instead, Holland and O’Connell provided their tax preparer with a limited set of the financial records that did not cover the substantial amounts of business funds Holland and O’Connell diverted. As a result of the underreporting, Erin’s Own caused a loss of $1,126,112 to the IRS.

The conspiracy charge provides for a sentence of no greater than five years in prison, three years supervised release, and a fine $250,000. The charge of aiding and assisting in the preparation of false tax returns provides for a sentence of no greater than three years in prison, one year supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. 

United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities and Financial Fraud Unit, and Trial Attorney Brittney Campbell of the Department of Justice’s Tax Division are prosecuting the case.

MISSOULA—Bozeman resident Sean O’Neal Carr was sentenced to 21 months in prison and three years of supervised release on Nov. 16 for illegal firearms possession, U.S. Attorney Kurt G. Alme announced.

Carr, 42, pleaded guilty to being a felon in possession of a firearm on Aug. 7.

Chief U.S. District Judge Dana L. Christensen presided at the hearing.

An investigation found that Carr, having been convicted of felony drug possession in Montana, possessed a 9mm semi-automatic pistol on Aug. 29, 2017 in Bozeman. Law enforcement arrested Carr after a Bozeman Police officer offered to help Carr and a woman who had been locked out of a vehicle.

As the officer approached, he noticed that Carr was openly carrying a pistol on his hip. Carr used a homemade tool to open the vehicle door and the woman left. When the officer spoke to Carr, he noticed Carr was fidgeting and seemed uncomfortable and that his behavior was similar to those he had seen on methamphetamine. The officer detained Carr after he identified himself and told the officer he was on probation. The officer took possession of the gun, which was loaded with a full magazine and had a round in the chamber.

Carr told law enforcement later that the firearm was a birthday present and that he’d had it for about a month.

Assistant U.S. Attorney Cyndee L. Peterson prosecuted the case, which was investigated by the Bozeman Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together federal, state, local and tribal law enforcement agencies and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.  The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals.

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MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Simon Sayers, 42, Bayfield, Wisconsin, pleaded guilty and was sentenced yesterday by U.S. District Judge William M. Conley to 90 months in federal prison for conspiring to distribute methamphetamine.

The amount of methamphetamine attributable to Sayers was approximately 756 grams, which Judge Conley described as a conservative estimate.  Sayers’ role in the conspiracy included wiring money to the California source of methamphetamine and accepting packages of methamphetamine in the mail.  Sayers also distributed methamphetamine for a profit.  Judge Conley stated that almost all of this methamphetamine was distributed on the Red Cliff Reservation. 

Simon Sayers and three other individuals were charged for their roles in this methamphetamine distribution conspiracy.  Tyrone Butterfield, Ryan Witter, and Rita Witter are scheduled to go to trial before Judge Conley on January 14, 2019.  Rita Witter and Ryan Witter are mother and son. 

The charge against Sayers was the result of an investigation conducted by the Red Cliff Police Department;  Wisconsin Department of Justice Division of Criminal Investigation; U.S. Postal Inspection Service; Drug Enforcement Administration - Madison, Wisconsin and Fremont, California; Bayfield County Sheriff’s Office; Ashland Police Department; and the Fremont (California) Police Department.  The prosecution of the case has been handled by Assistant U.S. Attorneys Diane Schlipper and Darren Halverson. 

RALEIGH– Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that MARIA DEL CARMEN URIETA-LAGUNAS, age 50, of Mexico, illegally present in the United States and residing in Wake County, North Carolina, was sentenced today to 6 months imprisonment. On August 23, 2018 URIETA-LAGUNAS pled guilty to passport fraud.  

According to court records, URIETA-LAGUNAS applied for a United States passport using the means of identification of a United States citizen born in Texas.  Further, the investigation revealed URIETA-LAGUNAS had previously applied for a United States visa in Mexico under her real identity and was denied.  Thereafter, URIETA-LAGUNAS assumed the identity of a United States citizen in order to remain undetected in the United States and travel internationally.

URIETA-LAGUNAS was sentenced in Raleigh by United States District Judge James C. Dever III, who in addition to the term of incarceration, also imposed a one-year term of supervised release with a condition to remain outside of the United States if ordered deported by immigration officials.

The case was investigated by the Department of State’s Diplomatic Security Service under the newly created framework of the Document and Benefit Fraud Task Force (DBFTF) in the Eastern District of North Carolina.

Gulfport, Miss – William Russell Oswalt, 29, of Hattiesburg, was sentenced yesterday by U.S. District Judge Keith Starrett to a total of 96 months in prison, followed by 3 years of supervised release, on firearm and drug trafficking charges, announced U.S. Attorney Mike Hurst, Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Assistant Special Agent in Charge Derryle Smith with the Drug Enforcement Administration (DEA).

Oswalt was sentenced to 60 months for possession of a firearm in furtherance of drug trafficking, and 36 months for conspiracy to possess with intent to distribute heroin. He was also ordered to pay $5,000 fine on each charge, for a total of $10,000.

On January 4, 2016, officers with the 12th Circuit Court Narcotics Enforcement Team made an undercover purchase of heroin from Oswalt. On January 17, 2017, officers executed an arrest warrant on Oswalt at a Hattiesburg hotel finding him in possession of marijuana, methamphetamine, digital scales, numerous pills and a loaded firearm. Working with the officers from the Narcotics Enforcement Team, DEA and ATF agents learned that Oswalt had been distributing heroin in the Hattiesburg area since 2013.

The 12th Circuit Court Narcotics Enforcement Team, the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It was prosecuted by Assistant United States Attorney Annette Williams.

Hattiesburg, Miss. - Asa Jefferson Sanford, Jr., 61, of Sumrall, was sentenced yesterday by U.S. District Judge Keith Starrett to serve a total of 140 months in federal prison, followed by 3 years of supervised release, for being a felon in possession of firearms and possessing a silencer which was not registered to Sanford in the National Firearms Registration and Transfer Record, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sanford was also ordered to pay a $10,000 fine.

On July 20, 2015, law enforcement officers executed state search warrants on Sanford’s vehicle and home. During the search, state and federal agents seized numerous firearms and ammunition in Sanford’s possession, as well as an unregistered silencer. Sanford has six prior felony convictions.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jefferson Davis County Sheriff’s Office, and the Drug Enforcement Administration Task Force. It was prosecuted by Assistant U.S. Attorney Andrea Jones.

NEW ORLEANS,– U.S. Attorney Peter G. Strasser announced that MICHAEL SANDERS, age 37, of Reserve, was sentenced on Wednesday, November 14, 2018 for charges relating to narcotics trafficking.

SANDERS pleaded guilty on February 1, 2018, to conspiring with others to distribute cocaine base (“crack”).

Judge Jane Triche Milazzo sentenced SANDERS to 83 months in the Bureau of Prisons, as well as 3 years of supervised release following his term of imprisonment.

U.S. Attorney Strasser praised the work of the Drug Enforcement Administration and the St. John the Baptist Parish Sheriff’s Office. Assistant U.S. Attorneys Nicholas D. Moses and Edward Rivera are in charge of the prosecution.

BOSTON – Two western Massachusetts men were arrested and charged today in federal court in Springfield in connection with at least nine armed robberies throughout western Massachusetts.

Alfredo Aldeco, 32, of Holyoke, and Emilio Rivera, 30, of Springfield, were each charged by criminal complaint with one count of interference with commerce by robbery and aiding and abetting. Rivera and Aldeco were arrested today and will appear in federal court in Springfield today at 2:00 p.m.

According to court documents, between Oct. 25, 2018, and Nov. 14, 2018, there were at least nine armed robberies of convenience stores located in Holyoke, Chicopee, Florence, West Springfield, and Agawam. Investigations into the robberies led law enforcement to determine that the same two men were involved in many of the robberies. During each of the robberies, a suspect brandished a distinctive long-barreled, black firearm-type object, and during at least one of the robberies, the suspect threatened to “come back and kill” the store clerk if the clerk called the police.

The charge of interference with commerce by robbery provides for a sentence of no greater than 20 in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Lawrence Panetta, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement. The West Springfield, Holyoke, Agawam, Chicopee, Northampton, and Springfield Police Departments provided valuable assistance to the investigation. Assistant U.S. Attorney Deepika Bains Shukla of Lelling’s Springfield Branch Office is prosecuting the case.

The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.