Assistant U.S. Attorney Blanca Quintero (619) 546-7118

NEWS RELEASE SUMMARY– January 3, 2017

SAN DIEGO – Alvin Lee Neal was sentenced today by U.S. District Judge Anthony J. Battaglia to 46-months in prison for robbing a Wells Fargo Bank branch in downtown San Diego.  Judge Battaglia also ordered Neal to pay $565 in restitution to Wells Fargo Bank.

In his plea agreement, Neal, 56, admitted that on May 13, 2016, he entered the Wells Fargo bank located on 610 First Avenue, San Diego, and approached a teller. At first, Neal swiped his Wells Fargo debit card through the Wells Fargo customer card reader located at the counter.  Neal’s bank profile appeared on the teller’s computer screen.  When the teller asked Mr. Neil what he wanted to do at the branch, the defendant responded, “You’re being robbed.  Don’t make a mistake.” Neal also handed a note to the teller that read, “You’re being robbed no mistake [sic]” and further told the teller “You don’t want anyone to get hurt, don’t make a mistake.”  Neal took $565 and fled from the bank.

Based on the information from Neal’s customer profile, FBI agents and San Diego Police Department detectives established surveillance around Neal’s residential address and ultimately arrested Neal.

DEFENDANT                                  Case Number: 16CR1188-AJB

Alvin Lee Neal                                              Age: 56                      

SUMMARY OF CHARGE                                                                  

Bank Robbery, in violation of Title 18, United States Code, Section 2113(a)         

Maximum penalty: 20 years in prison

AGENCY

Federal Bureau of Investigation

San Diego Police Department

G.F. “Pete” Peterman, III, United States Attorney for the Middle District of Georgia, announces that Alberto F. Islas, age 59, from the Los Angeles, California area, today entered a guilty plea to assault with intent to commit aggravated sexual abuse before the Honorable Clay D. Land, Chief United States District Judge for the Middle District of Georgia, in Columbus. 

In pleading guilty, Mr. Islas admitted that on September 25, 2016, he assaulted a woman on the Fort Benning Military Reservation by threatening her with a firearm in an effort to coerce sexual relations.

Mr. Islas faces a maximum sentence 20 years in prison, a maximum fine of $250,000, or both.  Sentencing will take place in about 60 days following a presentence investigation.  Mr. Islas remains in custody, as he has been since the day of the incident.

United States Attorney Peterman said “This matter was resolved through swift action by the Military Police at Fort Benning and rapid investigation by the FBI, which arrested Mr. Islas and obtained the physical and testimonial evidence necessary to this successful prosecution on the day of the incident.”  

This case was investigated by the Columbus office of the Federal Bureau of Investigation.  Assistant United States Attorney Melvin E. Hyde, Jr. is handling the prosecution for the Government.

Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.

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

ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Kenya Brown, 41, of Rochester, New York, who was convicted of conspiracy to possess with intent to distribute and to distribute 5 kilograms or more of cocaine and 280 grams or more of cocaine base (“crack” cocaine), and possession of firearms in furtherance of a drug trafficking crime, was sentenced to 20 years and 8 months in prison and 5 years supervised release and ordered to pay a fine of $5,000 by U.S. District Judge Elizabeth A. Wolford.    He was further required to forfeit any interest in $303,355.00 in drug trafficking proceeds, along with 12 shotguns, 8 rifles, and 472 rounds of ammunition.

Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that between 2006 and March 2012, Kenya along with his brother, Shawnta Brown, obtained kilogram quantities of cocaine, manufactured cocaine base from cocaine, broke down and packaged smaller quantities of cocaine and cocaine base for resale, distributed cocaine and cocaine base directly to others, operated drug houses where they directed and supervised lower-level members of the conspiracy who sold cocaine and cocaine base to others.  The Brown brothers were arrested March 9, 2012, when officers raided 2294 Clifford Avenue, 138 Strong Street, 29 Aberdeen Street and other locations in Rochester utilized by the brothers in their drug trafficking operation.  At these locations, officers seized more than 5 kilograms of cocaine, a quantity of cocaine base, firearms with ammunition, paraphernalia for the packaging, processing and weighing of narcotics, and receipts for gold and silver bars.  A few days later, officers raided a residence in the Town of Red Creek, Cayuga County, seizing more firearms, dozens of rounds of ammunition, $303,355 in U.S. currency, and over $23,000 in gold and silver bars and coins.  The investigation continued, and resulted in the arrest of Eric Contreras, 29, the California kilogram supplier on May 15, 2012, in Whittier, California.  On April 9, 2013, Contreras was sentenced upon his conviction in the Western District of New York for conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine to 188 months imprisonment.  Shawnta Brown, who was also convicted on conspiracy to possess with intent to distribute and to distribute cocaine and “crack” cocaine was recently sentenced to 20 years in prison.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief Michael Ciminelli and Special Agents of the Drug Enforcement Administration under the direction of Acting Resident Agent-in-Charge, William Reichard, with assistance provided by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Resident Agent-in-Charge, James Burroughs, and the United States Marshal Service, under the direction of United States Marshal Charles Salina.

LaShane Hayes, 44, of La Vergne, Tennessee, pleaded guilty today to conspiracy and wire fraud after being charged with defrauding the United States Department of Agriculture’s Child and Adult Care Food Program (CACFP) through her sponsor agency, All About Giving, Inc., announced David Rivera, United States Attorney for the Middle District of Tennessee.

The Child and Adult Care Food Program was created to reimburse child care providers for meals served to low-income children and other qualifying individuals. The program is funded by the USDA and administered in Tennessee by the Tennessee Department of Human Services. Program sponsor organizations are responsible for, among other things, enlisting child care providers into the program, communicating the total amount of reimbursement funds the providers were entitled to receive each month to the Tennessee Department of Human Services and distributing reimbursement funds to child care providers. 

According to the charging document and plea agreement, between March 2015 and July 2016, Hayes made monthly CACFP reimbursement requests to the Tennessee Department of Human Services knowing that these requests overstated the number of providers enrolled in CACFP through All About Giving; overstated the number of meals served to children by All About Giving providers and, therefore, caused the State of Tennessee to deposit more money into All About Giving’s bank account than All About Giving and its providers were entitled to receive. 

During the same time frame, Hayes and her co-conspirators created fictitious provider records which, among other things, overstated the number of meals served to children and listed fictitious children’s names in an effort to create the appearance that All About Giving’s monthly reimbursement requests to the Tennessee Department of Human Services were accurate. Hayes and her co-conspirators also created fictitious provider lists which included individuals who were not providing any child care and physical addresses which do not exist. Hayes also wrote checks from All About Giving’s bank accounts to alleged child care providers in an effort to create the appearance that she was distributing meal reimbursement money to child care providers, however, after receiving these checks, many of the alleged providers would cash them and return a portion of the money they received to Hayes. Over $1.5 million of CACFP funds was defrauded by Hayes and her co-conspirators. 

Hayes faces up to 20 years in prison and a $250,000 fine. She will be sentenced by U.S. District Judge Aleta Trauger on April 12, 2017. Her sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.

This case was investigated by the United States Department of Agriculture’s Office of Inspector General and the Tennessee Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Henry C. Leventis.

Contact: Jody Mullis
Assistant United States Attorney
Tel: (207) 945-0373

Bangor, Maine:  United States Attorney Thomas E. Delahanty II announced that Willie Harper, 48, of Guilford was sentenced today in U.S. District Court to 21 months in prison to be followed by three years of supervised release for distribution of heroin and oxycodone.  Harper pleaded guilty to the charges on June 1, 2016. 

According to court records, on August 13, 2015, Harper sold a quantity of heroin to an undercover law enforcement officer at a location in Guilford, Maine.   Two weeks later, Harper sold the undercover officer ten oxycodone pills at a different location in Guilford.  In imposing the sentence, Judge John Woodcock noted that Harper had contributed to Maine’s ongoing heroin problem and that Harper has “a horrible criminal record.” Harper’s criminal record includes felony convictions in Illinois for armed robbery, unlawful use of a weapon by a felon, and unlawful delivery of a controlled substance, and in Maine for sexual abuse of a minor. 

The investigation was conducted by the Drug Enforcement Administration and the Greenville, Maine Police Department.  

MADISON, WIS. -- A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictment today.  You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.

The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes.  If convicted, the sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. 

David Drone, 37, Madison, Wis., is charged with two counts of distributing heroin.  The indictment alleges that he distributed heroin on November 11 and 15, 2016. 

If convicted, Drone faces a maximum penalty of 20 years in federal prison on each count.  The charges against him are the result of an investigation by the Dane County Narcotics Task Force.  The prosecution of this case will be handled by Assistant U.S. Attorney Peter Jarosz. 

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Neosho, Mo., man pleaded guilty in federal court today to receiving and distributing child pornography.

Blake Altman, 33, of Neosho, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a June 16, 2015, federal indictment.

By pleading guilty today, Altman admitted that he received and distributed child pornography over the Internet from Aug. 14 to Oct. 1, 2014. Law enforcement officers executed a search warrant at Altman’s residence after he was identified in an undercover investigation into the distribution of child pornography via peer-to-peer file-sharing software. Undercover officers downloaded images and videos of child pornography from Altman’s computer. Officers seized Altman’s laptop computer, which contained images and videos of child pornography.

Under federal statutes, Altman is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by theSouthwest Missouri Cyber Crimes Task Force.

Project Safe Childhood

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."

CHICAGO — The United States Attorney’s Office today announced a settlement with the YMCA of Metro Chicago to resolve a complaint of discrimination filed on behalf of a child with type 1 diabetes.

The settlement agreement requires the YMCA of Metro Chicago to administer the emergency medicine glucagon to program enrollees with diabetes who have requested it.  Glucagon is a potentially lifesaving treatment for hypoglycemia (low blood sugar).  It is pre-measured and injectable and is intended to be administered to unconscious or unresponsive individuals by properly trained laypersons.

The settlement agreement also requires the YMCA of Metro Chicago to adopt and implement a comprehensive policy on diabetes management.

The settlement agreement was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois.

The U.S. Attorney’s Office received a discrimination complaint on behalf of a nine-year-old girl with type 1 diabetes who participates on a YMCA swim team.  The girl has been prescribed glucagon injections for use in the rare event that she develops severe hypoglycemia and cannot self-administer diabetes treatment.  The YMCA of Metro Chicago initially refused to administer glucagon.  As a result, the girl could not participate on the YMCA swim team without being accompanied by a family member who could administer glucagon in an emergency.

An investigation by the U.S. Attorney’s Office concluded that the YMCA of Metro Chicago discriminated against the girl by denying her, on the basis of disability, the opportunity to participate in the program, and by failing to make reasonable modifications in its policies regarding the administration of medication.

The YMCA of Metro Chicago denied the allegations of discrimination and made no admission of liability in this matter.  Nevertheless, to ensure full compliance with the Americans with Disabilities Act, the YMCA of Metro Chicago agreed to implement a comprehensive training program and establish several other procedures to afford individuals with disabilities, including diabetes, an equal opportunity to participate in its services.

The settlement agreement became effective on Dec. 21, 2016.  Although the United States agreed not to presently institute a civil action alleging discrimination under the ADA, it may review the YMCA of Metro Chicago’s compliance with the settlement at any time during the two-year duration of the agreement.  If the government believes the agreement has been violated, it reserved the right to institute a civil action in the appropriate U.S. District Court to enforce the agreement.

The government is represented by Assistant U.S. Attorney Virginia Hancock.

Greenbelt, Maryland – Nathan Antonio Davis, age 37, of Capitol Heights, Maryland, pleaded guilty late on January 3, 2017, to conspiracy to possess with the intent to distribute 500 grams or more of cocaine; and conspiracy to possess firearms in furtherance of a drug trafficking crime. 

Co-defendants Raymond Dexter Parker, age 37, of District Heights, Maryland; Adrian A. Vinson, a/k/a Buck Man, age 37, and Wayne Ellis Hampton, Jr., age 40, both of Laurel, Maryland; and Tavon Lee Crews, age 19, of District Heights, previously pleaded guilty to their roles in the conspiracy. 

The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Henry P. Stawinski of the Prince George’s County Police Department.

According to their plea agreements, from at least November 2015 through May 3, 2016, Davis, Parker, Vinson, Hampton, and Crews conspired to rob certain drug dealers operating in Maryland, to possess with the intent to distribute cocaine, and to possess firearms in furtherance of drug trafficking.  On April 13, 2016, at a location in Maryland, Davis and Parker met with an undercover agent (UC) working for the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to discuss the upcoming armed robbery of a drug stash house. 

During a follow-up meeting on April 21, 2016, Davis, Parker, Vinson and Crews met with the UC to discuss how they would execute the robbery and obtain the cocaine.  Davis stated that he and Parker committed robberies like this, as did Vinson. Vinson stated that he would use a badge to pose as a police officer to facilitate the robbery.

On May 3, 2016, the day of planned robbery, the UC met with Davis and his co-conspirators.  On the way to the meeting location Crews was a passenger in Parker’s vehicle and picked up a gun which was on the floor of the vehicle.  Crews then put the gun back on the floor underneath the front passenger seat.  After arriving at the final meeting place, Davis, Parker, Vinson, Hampton, and Crews, discussed, in detail, plans for the upcoming robbery with the UC.  Davis informed the robbery crew that he was in possession of a 60,000-volt taser, revolver, gloves, and duct tape; and asked whether the robbery crew should leave the armed guards alive in the stash house. As part of the plan, Crews was to remain in the car as a lookout for the robbery crew.  During the conversation, the UC observed Parker with a firearm and saw Parker wiping off the firearm with his shirt. The UC told Parker to put the firearm back in the vehicle because it was not yet needed. Hampton instructed his co-conspirators to remove the license plates from a rental vehicle that they planned to use for the robbery and replace them with license plates from an unaffiliated vehicle parked in the parking lot to evade detection by law enforcement during and after the armed robbery of the stash house. At some point during the conversation, Parker began to remove the license plates.

Law enforcement arrested Davis, Parker, Vinson, Hampton, and Crews.  Law enforcement recovered nylon stockings, blue nitrile gloves, disinfecting wipes, duct tape, a stun gun box, paracord, screwdrivers, and a pocket knife from the vehicle that Davis had driven that day.  Law enforcement also recovered a stun gun from the scene and the following loaded firearms from the vehicle driven by Parker: two .38 special caliber revolvers; and a Ruger 9 millimeter caliber semi-automatic handgun.  During the investigation, law enforcement determined that the Ruger handgun was stolen. 

Davis was detained after his arrest.  During his detention, Davis wrote a letter to an individual in Waldorf, Maryland, and instructed that person to retrieve a firearm from a residence in Suitland, where Davis had been staying prior to his arrest, and take it back to the individual’s home for safe keeping.  At Davis’ direction, the same individual had previously recovered narcotics, drug paraphernalia and cash, while Davis was detained.

While he was detained, Davis also wrote to an individual at a residence in Washington, D.C., where Davis had also stayed prior to his arrest.  Davis instructed that individual to get cocaine from a package in a dresser in the residence and sell the cocaine.  Davis further stated that a portion of the proceeds from the sale of the cocaine were to be sent to Davis in jail, and the rest was to be used to fund the marijuana grow operation in the Washington, D.C. residence.  Davis also discussed the marijuana grow operation with this individual on recorded jail calls.

After intercepting Davis’ letters, law enforcement executed search warrants at the residences in Waldorf, Suitland, and Washington, D.C. on June 9 and 10, 2016. From the residence in Waldorf, law enforcement recovered, among other items, drug paraphernalia (including items needed to maintain a marijuana grow operation), and $2,480 in cash.  From the residence in Suitland, law enforcement recovered: 28 grams or more of crack cocaine; powder cocaine; marijuana; four firearms, including a firearm located in the exact location that Davis had described in his jail letter; 38 rounds of ammunition; and $900 in cash.  From the residence in Washington, D.C., law enforcement recovered: cocaine; marijuana and a marijuana plant; a firearm; and 28 rounds of ammunition.  Davis had previous felony convictions which made it illegal for him to possess a firearm and ammunition.

Davis, Vinson, Parker and the government have agreed that if the Court accepts their plea agreements Davis and Vinson will each be sentenced to between 12 and 15 years in prison, and Parker will be sentenced to 10 years in prison.  U.S. District Judge Roger W. Titus has scheduled sentencing for Davis on May 10, 2017; for Parker on May 1, 2017; and for Vinson on May 11, 2017.

Crews is scheduled to be sentenced on March 23, 2017, and Hampton on March 24, 2017, both at 8:30 a.m.

United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Jennifer R. Sykes and Menaka Kalaskar, who prosecuted the case.

Oklahoma City, Oklahoma – Mark A. Yancey, United States Attorney for the Western District of Oklahoma, announces that REHABILITATION MEDICINE OF OKLAHOMA, PLLC and BCOT, PLLC dba REHABILITATION MEDICINE OF OKLAHOMA – TULSA have paid $315,000 to settle civil claims stemming from allegations that the clinics violated the False Claims Act by submitting false claims to the Office of Workers Compensation Programs of the United States Department of Labor ("DOL-OWCP").

Rehabilitation Medicine of Oklahoma, PLLC and BCOT, PLLC dba Rehabilitation Medicine of Oklahoma – Tulsa ("RMO") are Oklahoma professional limited liability companies that operate medical clinics in Oklahoma City and Tulsa. RMO provided medical services to federal employees under the Federal Employees’ Compensation Act (FECA). FECA provides compensation benefits to civilian employees of the United States for disability due to personal injury sustained while in the performance of duty, and for employment-related disease. Benefits include rehabilitation, medical, surgical and necessary expenses. Claims for services provided under FECA are submitted to DOL-OWCP.

The United States contends that from December 8, 2010, through December 31, 2012, RMO submitted false claims for payment to DOL-OWCP. Specifically, it is alleged that RMO submitted claims to DOL-OWCP for medical services furnished to federal employees of nine federal agencies that were false because they were either (1) billed at a higher rate than allowed or (2) not performed at all.

In order to resolve the allegations brought by the United States, RMO has paid $315,000.

In reaching this settlement, RMO did not admit liability and the government did not make any concessions regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.

This case was investigated by the United States Postal Service, Office of Inspector General. The case was prosecuted by Assistant United States Attorney Ronald R. Gallegos.

            WASHINGTON – An Arkansas state representative pleaded guilty today to conspiring to authorize and direct a total of $600,000 in state government funds to two non-profit entities in exchange for tens of thousands of dollars in kickback payments, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Elser of the Western District of Arkansas. 

            Micah Neal, 42, of Springdale, Arkansas, pleaded guilty today before U.S. District Judge Timothy L. Brooks of the Western District of Arkansas to one count of conspiracy to commit honest services fraud.  Sentencing will be scheduled at a later date. 

            As part of his guilty plea, Neal admitted that, between January 2013 and January 2015, while serving in the Arkansas House of Representatives, he conspired with an Arkansas state senator to use their official positions to appropriate government money known as General Improvement Funds (GIF) to a pair of non-profit entities in exchange for bribes.  Specifically, Neal and the senator authorized and directed the Northwest Arkansas Economic Development District, which was responsible for disbursing the GIF, to award a total of $600,000 in GIF money to the two non-profit entities.  Of the $600,000, Neal personally authorized and directed a total of $175,000 to the entities.  In return for his official actions, Neal received approximately $38,000 in bribes from officials at those non-profit entities.           

            The Federal Bureau of Investigation and the Internal Revenue Service investigated the case.  Trial Attorney Sean Mulryne of the Criminal Division’s Public Integrity Section and U.S. Attorney Elser and Assistant U.S. Attorney Kyra Jenner of the Western District of Arkansas are prosecuting the case. 

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DO NOT REPLY TO THIS MESSAGE.  IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.

WHEN:     Thursday, January 5, 2017 (9:00 am)

WHERE:    Mount Olive College

          Southern Bank Auditorium

          Raper Hall

          634 Henderson Street

          Mount Olive, NC 28365

Re:       11^th Annual Eastern Carolina Gang Conference

RALEIGH– The United States Attorney’s Office for the Eastern District of North Carolina along with a host of partners representing law enforcement agencies, social service providers, and school systems are sponsoring the 11^th Annual Eastern North Carolina Gang Conference on Thursday, January 5, 2017.  The training begins at 9:00 am and will conclude at 4:00 pm.  Expected attendance to the day long training are 200 professionals and the program will consist of topics targeting gang prevention and intervention specialists along with law enforcement.  Additionally, the keynote speaker Colonel (Retired) Edward W. Timmons, Sr., State Director of the N.C. National Guard’s Tarheel ChalleNGe Program, will speak at 1:00 p.m.

Credentialed members of the media are invited to attend the sessions not exclusive for law enforcement.

For additional information please e-mail Don Connelly at usance.PublicInfoOfficer@usdoj.gov.

KANSAS CITY, KAN. - An Iraqi man who falsified his application for a visa by claiming to have worked as a translator for the U.S. Army in Iraq was sentenced Wednesday to two years in federal prison, U.S. Attorney Tom Beall said.

Goran Sabah Ghafour, 35, who lived in Lawrence, Kan., while he was a graduate student at the University of Kansas, pleaded guilty to one count of visa fraud and one count of aggravated identity theft.

In his plea, Ghafour admitted he applied for a visa under a program allowing Iraqi nationals who worked for or on behalf of the U.S. government in Iraq to qualify for a visa. To support a false claim that he worked as a translator for the U.S. Army Ghafour fabricated a letter from an Army officer recognizing his work. In fact, the officer whose name was on the letter did not know Ghafour and did not consent to Ghafour writing the letter.

Beall commended Homeland Security Investigations and Assistant U.S. Attorney Chris Oakley for their work on the case.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JONATHAN RHOADES, 32, formerly of Windsor, pleaded guilty yesterday before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of distribution of child pornography.

According to court documents and statements made in court, in December 2014, a member of the Connecticut State Police’s Computer Crimes squad, operating in an undercover capacity, accessed a peer-to-peer file sharing network and downloaded six videos of minors engaging in sexually explicit conduct from an Internet Protocol (IP) address that was subsequently linked to RHOADES’s residence in Windsor.

On March 10, 2015, law enforcement officers executed a search warrant RHOADES’s residence and seized a desktop computer, laptop computer and other items.  Forensic analysis of the seized computers revealed at least 1,535 images and 49 videos of child pornography, most of which featured children younger than the age of five.

RHOADES has been detained since his arrest on related state charges on March 18, 2015.  On November 10, 2015, a federal grand jury in Hartford returned an indictment charging RHOADES with one count of distribution of child pornography.

Judge Meyer scheduled sentencing for March 28, 2017, at which time RHOADES faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.

This matter has been investigated by the Connecticut State Police and Homeland Security Investigations.  The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.

This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.

To report cases of child exploitation, please visit www.cybertipline.com.

CINCINNATI – A federal grand jury has charged James Denney, 30, of Cincinnati, with two counts related to the promotion of child pornography in an indictment returned in Cincinnati.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Steve Francis, Acting Special Agent in Charge, Homeland Security Investigations (HSI) announced the indictment returned today.

The indictment alleges that in December Denney knowingly promoted a URL on the DarkWeb containing child pornography and that Denney allegedly aided another in accessing the pornography of a minor engaging in sexually explicit conduct.

According to investigators, Denney allegedly provided an undercover agent with web links to an online board featuring dozens of links to child pornography chat rooms, video/image board sites, as well as “community” support groups and online security advice for child pornographers.

Promoting a URL that contains child pornography is punishable by a range of five to 20 years in prison. Aiding in accessing child pornography carries a maximum potential penalty of 20 years in prison. Each crime also includes a potential lifetime of supervised release.

U.S. Attorney Glassman commended the investigation of this case by HSI, and Assistant United States Attorney Karl P. Kadon, who is prosecuting the case.

An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.

CINCINNATI – Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, presented Cincinnati Police Chief Eliot K. Isaac today with a community policing commendation on behalf of U.S. Attorney General Loretta E. Lynch.

Lynch presented the recognition as part of her Inaugural Attorney General’s Community Policing Awards Ceremony on October 6.

There, she recognized the Cincinnati Police Department for its steadfast commitment to the principles of community policing and outstanding contributions to the safety, security and welfare of Cincinnati. Specifically, the police department was honored for its efforts to strengthen bonds between citizens and law enforcement, build mutual trust and promote the public good.

Lynch launched a national community policing tour in Cincinnati in May 2015. The tour was created to highlight collaborative programs and innovative policing practices designed to advance public safety, strengthen police-community relations and foster mutual trust and respect.

While in Cincinnati, the Attorney General, the U.S. Attorney’s Office, the Community Oriented Policing Services (COPS) office, the City of Cincinnati and the Cincinnati Police Department hosted a roundtable with city officials, law enforcement, local leaders, young people and other members of the community at the National Underground Railroad Freedom Center. 

Cincinnati Police also hosted officials at their Right to Read Program at Chase Elementary School where Cincinnati police officers work with University of Cincinnati students to tutor and mentor children. As part of the tour, the Attorney General also visited with the Cincinnati Police Department where she thanked officers for their hard work and spoke to officers that were hired with COPS Office hiring grants. 

“The Attorney General began her community policing tour here in Cincinnati because of this department’s outstanding community policing,” U.S. Attorney Glassman said. “Since the Attorney General’s visit, moreover, the Cincinnati Police Department has continued to innovate in this vital area. I am very pleased to partner closely with the Cincinnati Police on a daily basis, so it’s my particular pleasure to present this recognition from the Attorney General. On her behalf and all of the Department of Justice, I thank the men and women of the Cincinnati Police for their service.”

COLUMBUS, Ohio — The Department of Justice and the United States Attorney’s Offices for the Southern District of Ohio and the Northern District of Illinois have entered into a Non-Prosecution Agreement with Redflex Traffic Systems Inc., a Phoenix-based automated safety company.

The agreement was announced by Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; and Zachary T. Fardon, United States Attorney for the Northern District of Illinois.

The agreement was reached in part due to Redflex’s extensive and thorough cooperation over recent years, which is detailed in the agreement. It included cooperation with the successful prosecutions of several individuals, including a Columbus lobbyist, a high-ranking city of Chicago official and Redflex’s prior Chief Executive Officer.

Among the company’s obligations under the two-year agreement, Redflex will pay restitution of $100,000 to the City of Columbus. The company will also pay restitution and compensatory damages to the City of Chicago, the amount of which will be determined either by a final judgment or a settlement agreement in Chicago’s pending civil lawsuit against Redflex. 

Further, Redflex agreed to cooperate fully with DOJ and any other law enforcement agency designated by DOJ, including the Australian Federal Police and other Australian law enforcement authorities.  As part of that obligation, Redflex must, among other things, provide DOJ, the Australian Federal Police, and other Australian law enforcement authorities, upon request, all non-privileged information, documents, records, or other tangible evidence. Notwithstanding the two-year time period of the agreement, Redflex agreed to cooperate with DOJ, the Australian Federal Police, and other Australian law enforcement authorities until all of their investigations or prosecutions are concluded.

In exchange for Redflex’s fulfillment of its obligations under the agreement, DOJ agreed that it will not criminally prosecute Redflex for any of the conduct arising out of investigations in Chicago and Columbus. The agreement does not relate to any potential tax charges.

Redflex Traffic Systems is wholly owned by Redflex Holdings Group of Melbourne, Australia, which owns and operates a network of digital speed and red-light cameras worldwide. The company installs cameras that automatically record and ticket drivers who run red lights. As part of the Non-Prosecution Agreement, Redflex accepted responsibility for its conduct related to the illegal activities of its employees in recent U.S. investigations.

Its former CEO was convicted as part of the probes into bribes paid to elected officials to procure or expand Redflex’s contracts with Chicago and Columbus. The investigations also resulted in the convictions of a Chicago official and a Columbus lobbyist.  John Bills, a former Chicago assistant transportation commissioner, was convicted of accepting cash and benefits from Redflex in exchange for expanding the company’s business with Chicago. The lobbyist, John Raphael, pleaded guilty to extorting cash from Redflex to pass on to elected officials in Ohio in an effort to obtain red-light camera contracts.

Since the inception of the U.S. investigations, Redflex has initiated substantial additions and changes to its compliance program, policies and procedures. The company agreed in the Non-Prosecution Agreement to revise and address any deficiencies in its compliance code, policies and procedures regarding compliance with applicable anti-bribery and anti-corruption laws. Redflex agreed to adopt new policies to ensure that it maintains a rigorous anti-bribery and anti-corruption compliance code, and to install procedures designed to detect and deter violations of such laws.

During the term of the agreement, Redflex must prepare at least four follow-up reports and periodically submit them to DOJ.  If DOJ determines that Redflex has violated any provision of the Non-Prosecution Agreement, Redflex would be subject to prosecution for any applicable violation of U.S. law, including perjury and obstruction of justice.

The government in the Columbus case was represented by Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio.  The Columbus case was investigated by the FBI’s Cincinnati Field Office, Columbus Resident Agency, the IRS Criminal Investigation Division, and the Ohio Bureau of Criminal Investigation.

The government was represented in the Chicago case by Mr. Fardon and Assistant U.S. Attorneys Laurie Barsella and Timothy Storino of the Northern District of Illinois.  The Chicago case was investigated by the FBI’s Chicago Field Office, the IRS Criminal Investigation Division, and the City of Chicago’s Inspector General’s Office.  

CINCINNATI – The Justice Department filed a consent order today to resolve allegations that Union Savings Bank and Guardian Savings Bank engaged in a pattern or practice of “redlining” predominantly African-American neighborhoods in and around Cincinnati; Columbus, Ohio; Dayton, Ohio; and Indianapolis.  “Redlining” is the discriminatory practice by banks or other financial institutions of denying or avoiding providing credit services to consumers because of the racial demographics of the neighborhood in which the consumer lives.

The settlement, which is subject to court approval, was filed in conjunction with the department’s complaint in the U.S. District Court for the Southern District of Ohio.  The complaint alleges that Union and Guardian violated the Fair Housing Act and the Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race and color in their mortgage lending practices.  The lawsuit alleges that, from at least 2010 through 2014, Union and Guardian served the credit needs of the residents of predominantly white neighborhoods to a significantly greater extent than they served the credit needs of majority African-American neighborhoods.  Those neighborhoods are easily recognized because each of the four metropolitan areas in which the banks operate has long maintained highly-segregated residential housing patterns for African Americans.  Both banks are headquartered in Cincinnati and share common ownership and management. 

As a result of the settlement, Union will open two full-service branches and Guardian will open one loan production office to serve the residents of African-American neighborhoods. Together, Union and Guardian will invest at least $9 million in majority African-American neighborhoods in the Cincinnati, Columbus, Dayton and Indianapolis metropolitan areas.  That investment includes $7 million in a loan subsidy fund to increase the amount of credit that Union and Guardian extend to residents of majority African-American census tracts. In order to make residential mortgage loans available to residents of predominately African-American neighborhoods that were not adequately served by Union and Guardian, the banks will further invest $2 million in advertising, outreach, financial education and community partnership efforts. The settlement also requires both banks to develop robust internal controls to ensure compliance with fair lending obligations and conduct fair lending training for their employees. 

“Lenders must treat all potential borrowers equally and fairly,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This settlement embodies a win-win solution for all parties by increasing the volume of mortgage loans, driving economic activity and creating a level playing field for qualified borrowers.”

“Redlining has no place in the Southern District of Ohio,” said U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio. “This office is committed to vigorously enforcing the guarantees of the Fair Housing Act and the Equal Credit Opportunity Act so that the people in our District can borrow without prejudice based on race and color.”

The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Since 2010, the division has provided over $1.6 billion in monetary relief for individual borrowers and impacted communities through its enforcement of the Fair Housing Act, ECOA and the Servicemembers Civil Relief Act. The Attorney General’s annual reports to Congress on ECOA enforcement highlight the department’s accomplishments in fair lending and are available at www.justice.gov/crt/publications/.

The Civil Rights Division and the U.S. Attorney’s Office of the Southern District of Ohio are members of the Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.  For more information on the task force, visit www.StopFraud.gov.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN VOLOSHIN, 60, formerly of New Haven and Woodbridge, pleaded guilty today in Hartford federal court to one count of wire fraud and also admitted to violating a condition of his federal supervised release.

On May 17, 2012, U.S. District Judge Robert N. Chatigny sentenced VOLOSHIN to 33 months of imprisonment and three years of supervised release for operating multiple fraud schemes that caused losses of more than $1.5 million to individuals and lenders.  As part of the schemes, VOLOSHIN forged signatures and used fabricated bank account statements, tax returns, mortgage releases and loan applications.  VOLOSHIN was released from prison on May 16, 2014, and began serving a three-year term of supervised release.

Shortly after his release from prison, in an attempt to gain permission from the U.S. Probation Office to travel to London, VOLOSHIN repeatedly lied to and misled his supervising probation officer by concocting a bogus job for a real estate concern in London.  On November 7, 2014, Judge Chatigny sentenced VOLOSHIN to an additional nine months of imprisonment and 27 months of supervised release for violating the terms and conditions of his federal supervised release. 

VOLOSHIN was released from prison on June 8, 2015, and began serving his 27-month term of supervised release.

According to court documents and statements made in court, beginning in the fall of 2015, VOLOSHIN engaged in another fraud scheme by soliciting money from individuals and representing that the money would be fully invested to generate very high returns.  Although VOLOSHIN did invest some of the victims’ money, he used substantial portions of the victims’ money for personal expenses, including a $20,000 payment toward a luxury apartment in Manhattan, and for plastic surgery, fine dining, retail shopping and alcohol.

VOLOSHIN has been detained since his arrest on May 26, 2016.

VOLOSHIN pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years and a fine of up to $250,000.  He also admitted to one violation of the terms and conditions of his federal supervised release, which carries a maximum term of imprisonment of two years.  He is scheduled to be sentenced by Judge Chatigny in Hartford on May 4, 2017.   

The matter is being investigated by the Federal Bureau of Investigation.  The case is being prosecuted by Assistant U.S. Attorneys Marc H. Silverman and David T. Huang.

BOISE –  Troy A. Paul, 48, of Nampa was sentenced today in United States District Court to 30 months in prison followed by five years of supervised release for access with intent to view child pornography, U.S. Attorney Wendy J. Olson announced.   Paul pleaded guilty on August 16, 2016.

According to the plea agreement, agents with the Department of Homeland Security learned that an electronic device at Paul’s residence viewed images of child pornography on a Russian photo-sharing website several times between January and June of 2014.  Further investigation revealed that a device at Paul’s residence received an e-mail in March of 2014 which contained images of child pornography.  In February of 2015, agents with the Department of Homeland Security interviewed Paul, who admitted viewing child pornography on the Russian photo-sharing website, and receiving images of child pornography in his e-mail account.  Paul admitted viewing images of child pornography in his e-mail account approximately 100 times, using an iPhone assigned to him by his employer.  In March of 2015, agents with the Department of Homeland Security served a search warrant for the contents of Paul’s e-mail account, and discovered e-mails containing images of child pornography. 

The case was investigated by the Department of Homeland Security, Homeland Security Investigations, with assistance from the FBI and the Ada County Sheriff’s Office, and 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.”