Greenbelt, Maryland – Arthur Charles Clements, age 57, of Temple Hills, Maryland, pleaded guilty today to receiving child pornography.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

According to Clements’ plea agreement, on April 8, 2015, the National Center for Missing and Exploited Children (NCMEC) received a report of suspected child pornography from Microsoft after Clements uploaded an image depicting children engaged in sexually explicit conduct to his One Drive account. NCMEC referred the report to the Maryland State Police and on July 24, 2015, Maryland State Police Troopers and Special Agents from HSI executed a search warrant at Clements’ residence.  Law enforcement seized a laptop computer that contained from than 1,900 videos and 1,100 images of child pornography, including images and videos depicting sadistic or masochistic conduct and other depictions of violence performed on prepubescent children.  Forensic analysis of Clements’ digital media revealed that Clements received child pornography via Skype, including a video received on March 25, 2015.

Clements waived his rights and agreed to be interviewed by law enforcement.  During the interview Clements admitted that he downloaded and distributed child pornography and had been watching child pornography for approximately seven years.  Clements also admitted chatting via Skype for at least six months with an adult male living in another state who was sexually abusing a nine year old girl.  Clements admitted to watching live sexual conduct between the adult male and girl.  Clements had at least 34 videos and 25 images documenting the sexual abuse of the minor female saved on his laptop computer, including the video received on March 25, 2015, described above.

Within 12 days, Special Agents with HSI identified and arrested the individual with whom Clements chatted via Skype, Joshua Logan Thornton, age 31, of Wynne, Arkansas.  The child was rescued.  Thornton pleaded guilty to one count of production of child pornography in the Eastern District of Arkansas on November 28, 2015, and is scheduled to be sentenced on February 18, 2016, in U.S. District Court in Little Rock, Arkansas.

In 2007, Clements was convicted of indecent exposure in St. Mary’s County Circuit Court stemming from images and videos he sent to teenaged girl.

As part of his plea agreement, Clements must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

Clements faces a minimum mandatory sentence of five years in prison and a maximum of 20 years in prison for receiving child pornography.   U.S. District Judge George J. Hazel has scheduled sentencing for June 1, 2016 at 9:00 a.m.

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.justice.gov/psc.  For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.              

United States Attorney Rod J. Rosenstein commended HSI Baltimore and Maryland State Police for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney Sumon Dantiki, who prosecuted the case.

ALBUQUERQUE – Trevor Hunt, 22, of Paguate, N.M., a former detention officer with the Pueblo of Laguna’s Detention Facility (LPDF), pleaded guilty today in federal court in Albuquerque, N.M., on charges related to the sexual abuse of an inmate during the summer of 2015.  Specifically, Hunt pled guilty to one count of sexual abuse of a ward and one count of violating the civil rights of the victim, who was an inmate under Hunt’s supervision at the time Hunt committed the crimes. 

In announcing the guilty plea, U.S. Attorney Damon P. Martinez said, “Sexual assaults by corrections officers on those they are charged with keeping safe gravely undermine the very foundation of our judicial system.  The Justice Department will vigorously prosecute these crimes and work to vindicate the rights of the courageous victims who report them.”

“Correction Officers fill important and challenging roles in the criminal justice system. While the majority perform their duties honorably, those who abuse their authority deserve to be prosecuted to the fullest extent of the law,” said Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division.  “The FBI is proud to have worked with the U.S. Attorney’s Office and the Pueblo of Laguna Tribal Police Department on this case.”

“The Pueblo of Laguna and its Public Safety Department do not condone Hunt’s conduct as demonstrated by the immediate judicial and administrative action taken by the Pueblo upon learning about this unfortunate incident.  Inmates of the Laguna Pueblo Detention Facility and other detention facilities deserve to feel safe and secure while incarcerated” said Director Jesse Orozco of the Pueblo of Laguna Public Safety Department.  “I am proud of the fine work done by the Laguna Pueblo law enforcement officers on this case, and would like to express my gratitude for the assistance of the FBI and the U.S. Attorney's Office.”

According to the plea agreement, on May 23, 2015, Hunt was a corrections officer at the LPDF who supervised both male and female inmates.  On that day, Hunt accompanied the victim to the LPDF’s laundry room where he sexually assaulted the victim.  During today’s change of plea hearing, Hunt acknowledged that the victim was in official detention and under his custodial and supervisory control when he sexually assaulted her.  Hunt also admitted that he was aware that he willfully violated the victim’s constitutional rights when he assaulted her.

Hunt was ordered to surrender to the U.S. Marshals Service on Feb. 1, 2016, and will be detained pending his sentencing hearing, which has yet to be scheduled.

This case was investigated by Albuquerque office of the FBI and the Pueblo of Laguna Tribal Police Department, and is being prosecuted by Assistant U.S. Attorneys David Adams and Holland S. Kastrin.

This case was brought as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna.  The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both.  The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.

U.S. Attorney Kenneth A. Polite announced that a federal jury convicted JORGE PERRALTA, age 33, of Pasadena, Texas, and PAUL NORRIS, age 57, of Houston, Texas, of a drug conspiracy charge, following a four-day trial. 

U.S. Attorney Polite praised the work of the Drug Enforcement Administration in New Orleans and Houston, Texas along with the Houston Police Department in investigating this matter.  Assistant United States Attorneys Andre’ Jones, Elizabeth Privitera, and Jeffrey Sandman were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JEFFERY HOWARD, age 35, of Nicholson, Mississippi, was charged today in a one-count Indictment with use of interstate commerce facilities in the commission of murder-for-hire in violation of Title 18, United States Code, Section 1958(a).

According to court documents, as a result of a Federal Bureau of Investigation (“FBI”) Domestic Terrorism investigation, the New Orleans Joint Terrorism Task Force (“JTTF”) became aware of HOWARD, a known member of the Aryan Brotherhood, a violent white supremacy prison gang. HOWARD, who was allegedly involved in the trafficking of methamphetamine, sold drugs to an undercover law enforcement officer on numerous occasions. During one of the sales of drugs, HOWARD volunteered that he would be willing to commit a murder in exchange for money.  HOWARD later accepted payment to commit a murder.

If convicted, HOWARD faces up to ten years imprisonment, a $250,000 fine, and a three year term of supervised release. 

U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.

U.S. Attorney Polite praised the work of the FBI New Orleans Division JTTF for investigating this matter. Assistant United States Attorney Gregory M. Kennedy is in charge of the prosecution.

A federal jury today convicted 55-year-old Veracruz, Mexico businessman Francisco Antonio Colorado-Cessa (aka “Pancho”), of attempting to bribe a federal judge announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.

The jury, seated in Shreveport, Louisiana, found Colorado-Cessa, the owner of ADT Petroservicios, an oil services company in Mexico doing business with the Mexican National Oil Company PEMEX, guilty of one count of conspiracy to bribe a public official and one substantive count of bribery, by offer or promise, of a public official.  Evidence during trial revealed that Colorado-Cessa and others conspired in 2013 to pay a $1.2 million bribe to a federal judge in order to secure a reduced sentence for Colorado-Cessa in a related money laundering case.  According to court records, at no time before or during this investigation was the federal judge involved in the alleged criminal activity. 

On March 12, 2014, Colorado-Cessa, his son, Francisco Agustin Colorado Cebado (aka “Panchito”), and his business partner, Ramon Segura Flores, all pleaded guilty to one count of conspiracy to bribe a federal judge.  On July 22, 2014, visiting United States District Judge Donald E. Walter of the Western District of Louisiana sentenced Colorado Cebado and Segura Flores in Austin to a year and a day in federal prison and ordered them to pay a $10,000 fine for their roles in the scheme.  On February 2, 2015, Judge Walter sentenced Colorado-Cessa in Austin to five years in federal prison.  However, in October 2015, the U.S. 5^th Circuit Court of Appeals reversed Colorado-Cessa’s conviction and sentence and remanded the case back to the District Court.  On December 23, 2015, Judge Walter granted a defense motion for change of venue from Austin and ordered that jury selection and trial occur in Shreveport, LA.

In the related case, on December 10, 2015, a federal jury in Austin convicted Colorado-Cessa of one count of conspiracy to commit money laundering in connection with a scheme to launder millions of dollars in Los Zetas drug distribution proceeds through purchasing, training, breeding and racing American quarter horses in the United States.  Testimony during that trial revealed a shell game by Colorado Cessa, a close associate of the Zetas drug cartel’s top leaders including Miguel Angel Trevino Morales (aka “Z-40”), Oscar Omar Trevino Morales (aka “Z-42”), and others involving straw purchasers and transactions worth millions of dollars in New Mexico, Oklahoma, California and Texas to disguise the source of the drug money and make the proceeds from the sale of quarter horses or their race winnings appear legitimate.   

Over 400 quarter horses seized by federal authorities in June 2012 as part of the above mentioned money laundering operation have been sold for approximately $12 million.  One of the seized horses, Tempting Dash, winner of the Dash for Cash at Lone Star Park race track in Grand Prairie, TX, in October 2009, sold at an auction for a record $1.7 million in November 2013. 

As a result of both trial verdicts, Colorado-Cessa now faces up to 20 years in federal prison on the charge of conspiracy to commit money laundering; up to 15 years in federal prison for the charge of bribery by offer or promise; and, up to five years in federal prison for the charge of conspiracy to commit bribery.  Colorado-Cessa remains in federal custody pending sentencing.  No sentencing dates have been scheduled.

This investigation was conducted by agents with the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Drug Enforcement Administration with assistance from the United States Marshals Service, Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) and U.S. Border Patrol.  Other judicial districts involved in this matter include the Western District of Oklahoma, Central District of California, Southern District of Texas, District of New Mexico and the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC).

U.S. Attorney Kenneth A. Polite announced that ERIC COTTRELL, age 44, of Minden, Louisiana, and RAYMOND CHIU, age 72, of Foster City, California, were charged today in a three-count Indictment with conspiracy (18 U.S.C. § 371), violations of the Lacey Act (16 U.S.C. § 3372), and smuggling goods from the United States (18 U.S.C. § 554).

According to court records, from March 25, 2015 through the present, COTTRELL and CHIU conspired to purchase and smuggle unpermitted turtles, including Diamondback Terrapins.  Both men were arrested earlier this month and were released on bond.

If convicted, the maximum penalty as to the Lacey Act and conspiracy charges are five years imprisonment, a $250,000 fine, and a three year term of supervised release.  The maximum penalties as to the smuggling charge are ten years imprisonment, a $250,000 fine, and a three year term of supervised release.   

U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.

U.S. Attorney Polite praised the work of the U.S. Fish and Wildlife Service and Homeland Security Investigations in investigating this matter.  Assistant United States Attorney Gregory M. Kennedy is in charge of the prosecution.

For Further Information, Contact: Assistant U.S. Attorney Mark W. Pletcher (619) 546-9714

NEWS RELEASE SUMMARY– January 28, 2016

SAN DIEGO, CA – U.S. Navy Commander Michael Vannak Khem Misiewicz pleaded guilty to bribery charges in federal court today, admitting that he gave classified ship schedules - including those that contained information related to the U.S. Navy’s ballistic missile defense operations in the Pacific - to a foreign defense contractor in exchange for cash, gifts, travel expenses, entertainment and the services of prostitutes.

Misiewicz, 48, who was indicted last January by a federal grand jury in the Southern District of California, pleaded guilty before U.S. Magistrate Judge Jan Adler to one count of conspiracy and one count of bribery. A sentencing hearing is scheduled for April 29, 2016 at 9 a.m. before U.S. District Judge Janis L. Sammartino.

According to admissions in his plea agreement, from January 2011 until September 2013, Misiewicz provided classified U.S. Navy ship schedules and other sensitive U.S. Navy information to the defense contractor, Leonard Glenn Francis, CEO and owner of Singapore-based Glenn Defense Marine Asia. GDMA provided husbanding services such as tugboats, fuel, and trash removal services for U.S. Navy ships and submarines when they arrived at ports throughout the Pacific.

In his plea agreement, Misiewicz admitted that he used his position and influence within the U.S. Navy to advance the interests GDMA, including by providing Francis with classified ship schedules and other proprietary U.S. Navy information, and that in return, Francis gave him cash, paid for luxury travel on at least eight occasions for Misiewicz, his mother, brother and children to the Philippines, Japan, Kuala Lumpur, Cambodia, Singapore and the United States, provided his wife with a designer handbag, and plied Misiewicz with the services of prostitutes on multiple occasions. Throughout the conspiracy, Misiewicz admitted, he and his conspirators took steps to avoid detection by law enforcement by, among other means, using clandestine email accounts, which they periodically deleted.

“Commander Misiewicz provided information to a foreign contractor that, in the wrong hands, could’ve had a devastating impact on national security,” said U.S. Attorney Laura Duffy. “By giving in to greed, he put his Navy shipmates and fellow Americans in harm’s way. This guilty plea is an important step in ensuring that all those who violated their duty of trust to the United States in this affair are held accountable.”

“In exchange for luxury vacations, gifts and other expenses, Commander Misiewicz betrayed his oath, the men and women of the U.S. Navy, and American taxpayers by directing lucrative government contracts to his financial patron,” said Assistant Attorney General Leslie R. Caldwell.  “Working with our law enforcement partners, the Department of Justice’s Criminal Division is committed to prosecuting corrupt officials who abuse positions of public trust.”

“Today's guilty plea of Commander Misiewicz is yet another example of a U.S. Navy officer who sought to enrich himself at the expense of U.S. taxpayers,” said DCIS Director James B. Burch, Director. “This type of reprehensible behavior will not be tolerated. Those who serve in the U.S. Navy have an obligation to uphold the public's trust or suffer the consequences. DCIS, the Naval Criminal Investigative Service, and the Department of Justice will vigorously pursue this investigation wherever it may lead us.”

“Commander Misiewicz chose personal gain and gratification over sacrifice and service to our country.  His actions are antithetical to the Navy's core values of honor, courage and commitment," said NCIS Director Andrew Traver. “Along with DCIS, we will continue vigorously pursuing all aspects of the investigation.”

So far, nine people have been charged; of those, eight have pleaded guilty, including Misiewicz, Captain Daniel Dusek, Commander Jose Sanchez, NCIS Special Agent John Beliveau and U.S. Navy Petty Officer First Class Daniel Layug; as well as GDMA’s Francis and GDMA employee Alex Wisidigama. Former Department of Defense civilian employee Paul Simpkins awaits trial.  Layug was sentenced last week to 27 months in prison and a $15,000 fine; the others await sentencing.

The ongoing investigation is being conducted by NCIS, DCIS and the Defense Contract Audit Agency.  The case is being prosecuted by Assistant U.S. Attorney Mark W. Pletcher of the Southern District of California and Trial Attorneys Brian R. Young and Lawrence Atkinson of the Criminal Division’s Fraud Section. 

Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.

DEFENDANT                                              Case Number: 13-CR-4287                                     

Michael Vannak Khem Misiewicz                  48                    San Diego, CA

SUMMARY OF CHARGES

Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371

Maximum Penalty: 5 years in prison, a $250,000 fine,

Bribery, in violation of 18 U.S.C. § 201

Maximum Penalty:  15 years in prison, a $250,000 fine

INVESTIGATING AGENCIES

Defense Criminal Investigative Service

Naval Criminal Investigative Service

Defense Contract Audit Agency

For Further Information, Contact: Assistant U.S. Attorney Joseph J.M. Orabona (619)546-7951

NEWS RELEASE SUMMARY– January 28, 2016

SAN DIEGO – A federal jury today convicted Dr. William Bailey, a local physician of osteopathic medicine, on eight counts of tax evasion.

According to evidence presented at trial, between 2004 and 2011 Bailey earned over $1.1 million in compensation for his services as a physician at two different local clinics and paid no taxes. Bailey concealed his income by having his paychecks directed to an account in the name of a trust.

In his own testimony at trial, Bailey admitted that he cut and pasted other documents to create the trust himself and signed the name of another person as the creator of the trust. As the grantor, sole trustee and also the beneficiary of the so-called trust, the income was attributed to Bailey as an individual.

Bailey spent the $1.1 million he deposited in the trust account to pay his personal expenses, including the purchase of a home, two cars, a time share and approximately $400,000 in credit card bills. Despite earning a significant income, Bailey reported no taxable income on the tax returns he filed. Evidence presented at trial showed that Bailey owed a total of $315,000 in unpaid taxes for the period from 2004-2011.

“As today’s verdict shows, the law is clear on the issue of taxable income and who is required to file and pay taxes—there is no gray area on the subject,” said Special Agent in Charge Erick Martinez for IRS Criminal Investigation. “With filing season upon us, let this conviction serve as a warning to those who are considering similar conduct.”

Bailey is scheduled to be sentenced on April 20, 2016, at 9:00 a.m., before U.S. District Judge Cathy A. Bencivengo.

DEFENDANT                                  Criminal Case No. 13CR3046-CAB

William Richard Bailey                       Age: 57                       San Diego, California

SUMMARY OF CHARGES

Title 26, United States Code, Section 7201 B Tax Evasion

Maximum Penalties: 5 years of imprisonment and $250,000 fine per count

AGENCY

Internal Revenue Service-Criminal Investigations

This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy.  United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.

            LOS ANGELES– Federal authorities on Saturday arrested 13 people after law enforcement authorities interdicted nearly 3,000 pounds of marijuana that they were trying to smuggle into the United States by panga boat at Arroyo Quemada Beach in southern Santa Barbara County, just north of the city of Santa Barbara. All 13 defendants were named in a criminal complaint filed Sunday that charges them with possession of marijuana with the intent to distribute.

            “Smuggling by panga boat endangers the lives of both the smugglers and authorities interdicting the boats and their payloads,” said United States Attorney Eileen M. Decker. “Law enforcement has and will continue to use all available means to curtail this dangerous activity.”

            According to the affidavit in support of the criminal complaint filed yesterday, the United States Coast Guard first observed the panga boat at Arroyo Quemada Beach early Saturday morning. The affidavit notes that drug-traffickers commonly use panga boats at night in an effort to evade law enforcement.

            In this case, authorities believe that three people were in the boat, and approximately 15 people were observed on shore helping to unload the bales of marijuana. Two vans and a pick-up truck separately drove to the beach, and bales of marijuana were loaded into the pick-up and one of the vans. The vehicles then departed the beach at about the same time, but they went in separate directions. One van, which was being used to transport the marijuana, was stopped in Camarillo; the second van, which was being used to transport people, was stopped when it returned to Arroyo Quemada Beach; and the pick-up, which was being used to transport marijuana, was stopped in Carpinteria.  Law enforcement seized 114 bales of marijuana from the van stopped in Camarillo and the pick-up truck stopped in Carpinteria.

            Authorities arrested the following individuals:

• Hector Raul Bernal-Lara, 41;

• Ricardo Sanchez-Marquez, 36;

• Daniel Aguilar, 25;

• Mark Garcia, 23;

• Susana Tobaldo, 42;

• Kevin Tes, 22;

• Josh Rubio, 21;

• Alfonso Aguilar-Ballestros, 48;

• Jesus Moreno-Sepulveda, 31;

• Santiago Galvan-Carrillo, 48;

• Paul Armenta-Bueno, 34;

• Bryan Castro, 18; and

• Daniel Fernando-Huizar, 26.

            All 13 defendants are expected to make their initial appearances today in federal court in Los Angeles.

            A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.

            The statutory maximum penalty for a violation of possession nearly 3,000 pounds of marijuana with the intent to distribute it is life in prison.

            The investigation in this case was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Coast Guard, the United States Border Patrol, the Los Angeles County Sheriff’s Department, the Santa Barbara County Sheriff’s Department, and the Ventura County Sheriff’s Department.

Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the filing of a federal criminal complaint charging Joseph Michael Sharkey (36, Reston, VA) with assault or intimidation of a flight crew.  If convicted, he faces a maximum penalty of 20 years in federal prison. 

According to the criminal complaint, on Sunday, January 31, 2016, Sharkey was a passenger on Jet Blue Flight 715 from Reagan International Airport in Washington, DC to Jacksonville International Airport (JIA). During the flight, Sharkey verbally assaulted another passenger and then placed that passenger in a headlock. When ordered by a flight attendant to return to his seat, Sharkey at first complied but then assaulted the flight attendant and made an effort exit the airplane through an exit door. Sharkey was stopped by another flight attendant, but then fought with him, kneeing him in the groin. The flight attendants enlisted the help of volunteers and subdued Sharkey, placing him in flex cuffs for the remainder of the flight. The airplane landed safely at JIA and Sharkey was removed from the flight by airport police.

Sharkey made his initial appearance in Jacksonville earlier today. He was temporarily ordered detained until his formal detention hearing, which has been scheduled for February 3, 2016.

A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.         

This case was investigated by the Jacksonville Aviation Authority Police Department and the Jacksonville Office of the Federal Bureau of Investigation. It will be prosecuted by Assistant U.S. Attorney Dale Campion.

BOSTON – Jorge Delgado, a/k/a Antonio Martinez, a/k/a Elisaul Martinez Santana, 28, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 33 months in prison and three years of supervised release.  In October 2015, Delgado pleaded guilty to one count of conspiracy to distribute heroin and fentanyl and three counts of distribution of heroin. 

Delgado was the leader of a drug ring responsible for distributing heroin and fentanyl in the Salem and Peabody area.  Delgado received orders for heroin from customers via cellphone and often sent couriers, two of whom were charged as co-defendants, to distribute drugs for him.  Delgado’s drug ring not only distributed heroin but also distributed fentanyl in place of heroin on numerous occasions.  

Delgado’s co-defendants, Juanel Pena and Thomas Martinez-Ortiz, pleaded guilty and were sentenced to 21 months and time served of 53 days in prison, respectively. 

This case was brought as part of the federal response to the growing opioid abuse epidemic in Massachusetts and other New England states.  A recent surge in overdose deaths has been attributed in part to the addition of fentanyl to heroin, creating a toxic mixture substantially more potent, and more dangerous, than heroin alone.

United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Salem Police Chief Mary Butler; and Peabody Police Chief Thomas M. Griffin, made the announcement today.  The case was prosecuted by Assistant U.S. Attorney Young Paik of Ortiz’s Criminal Division.

LOUISVILLE, Ky. – A Grayson County, Kentucky, former police officer and school administrator was sentenced to 48 months in prison followed by ten years of supervised release today, by Chief District Judge Joseph H. McKinley, for violating federal and state sex abuse laws, announced United States Attorney John E. Kuhn, Jr.

Stephen E. Miller, age 45, pleaded guilty to four counts in a superseding information, on July 30, 2015. Miller pleaded guilty to engaging in abusive sexual contact with three female students and third degree sodomy with a fourth female student.  The incidents occurred at Bluegrass Challenge Academy between February and August 2013. Miller is in the custody of the United States Marshall Service.

Miller previously worked as a police officer in Leitchfield, Kentucky.  He resigned the position following complaints of inappropriate conduct toward two women.  Miller then began working at Bluegrass Challenge Academy, a residential, educational program run by the Kentucky National Guard, located on Fort Knox Military Base.   Miller had supervisory authority over the Academy students.

John Smith, who was the director of Bluegrass Challenge Academy during the time, has been indicted for failure to report child abuse.If convicted, he faces a maximum sentence of one year in prison, a fine of up to $100,000, and up to one year of supervised release.

Assistant United States Attorneys Amanda E. Gregory and Stephanie M. Zimdahl are prosecuting the case.  The Federal Bureau of Investigation (FBI) with assistance from the Army Criminal Investigation Division conducted the investigation.

Sixteen count indictment included forcing a minor child to engage in commercial sex acts with another person

LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. announced the 50 year sentence followed by a lifetime period of supervised release today, by Chief District Judge Joseph H. McKinley Jr., of a Louisville man who sexually abused a minor child, forced the minor child to engage in commercial sex acts with another person, and sexually exploited that child and nine other minor children to produce visual images.

Christopher Kosicki, 27, pleaded guilty to 15 charges in a superseding indictment, on July 23, 2015, in U.S. District Court in Owensboro, Kentucky. Further charges included sex trafficking a child under age 14, and aiding and abetting another person to cross a state line with intent to engage in sexual acts with a person who had not attained the age of 12 years. Co-defendant Howard Key Chambers of Oldham County, Kentucky, remains in the custody of the U.S. Marshall Service. Chambers is charged with forcing a minor child to engage in commercial sex acts and engaging in sexually explicit conduct with a minor child to create visual images that can be transported in commerce by any means. Chambers is scheduled for trial in Louisville on April 12th, 2016.

According to the plea agreement, and statements made in court, the criminal activity took place at Kosicki’s Louisville home between September 2012 and September 26, 2014 - when the defendant was arrested through a federal criminal complaint. Kosicki admitted in court to making a 10, then 11-year-old child available to others for sexually explicit activity. Later examination of digital devices and storage media owned by Kosicki revealed his production of sexually explicit images of 10 different children over the course of several years.  All of the images were created in Jefferson County, Kentucky.

Law enforcement officials first became aware of Kosicki’s criminal conduct after arresting Raymond Shadburn in Seymour, Indiana, on September 24, 2014, on child exploitation charges.  During a post-arrest interview, Shadburn allegedly provided information that led law enforcement to Kosicki’s residence in Jefferson County, Louisville, Kentucky.

Shadburn and Kosicki originally met online when Shadburn responded to a Craig’s List ad placed by Kosicki.  In connection with the ad, Shadburn drove from Indiana to Kosicki’s residence in Louisville at least four times beginning in late August, early September 2014.  While there, Kosicki made an 11-year-old child available to Shadburn for sexual activity.  During one of the visits in September, Shadburn took sexually explicit photographs of the child (Jane Doe 1), in the presence of Kosicki.  At least one photo depicted Kosicki and the child.  Shadburn took the images with him back to Indiana and later shared the images with other individuals on the Internet (including an undercover police officer in Washington, D.C.).  During at least one visit, both men engaged in sexual activity with the child.

In 2013, Kosicki allegedly met co-defendant Howard Key Chambers via Craig’s List.  The two communicated online and, eventually, Chambers allegedly travelled from Oldham County, Kentucky, to Louisville, Kentucky, to meet Kosicki at Kosicki’s residence. 

Chambers is charged with travelling to Kosicki’s home to engage in sexual activity with the 10-year-old turned 11-year-old child,  between six and eight times, from 2013 until August 2014.  The two helped each other entice, harbor, provide, obtain, and maintain a person that had not attained the age of 14 years who was caused to engage in commercial sex acts, that is, any sex act, on account of which anything of value is given to and received by any person. On several occasions, Chambers allegedly gave Kosicki money after engaging in sexual activity with the child (age 10 and then 11).  On at least one occasion, he (Chambers) is charged with giving money directly to the child after engaging in sexual activity with her.  Additionally, on one occasion, Kosicki photographed Chambers allegedly engaging in sexual activity with the child.

This case is being prosecuted by Assistant United States Attorneys Jo E. Lawless and Spencer McKiness and is being investigated by the Indianapolis Police Department, District of Columbia Metro Police, Louisville Metro Police, and the Federal Bureau of Investigation (FBI).

CHARLESTON, W.Va. – A former official of Freedom Industries was sentenced today to three years of probation and a $10,000 fine for a Clean Water Act violation connected to the 2014 Elk River chemical spill, announced Acting United States Attorney Carol Casto. Robert J. Reynolds, of Apex, North Carolina, previously pleaded guilty in federal court to negligently discharging a pollutant in March 2015. Reynolds is one of six former officials of Freedom Industries, in addition to Freedom Industries itself as a corporation, to be prosecuted for federal crimes associated with the chemical spill.

On January 9, 2014, a major chemical leak was discovered in Charleston at the above-ground storage tank area owned and operated by Freedom Industries (Freedom) on the Elk River. Freedom used these storage tanks to keep and process chemicals, and the leak consisted primarily of 4-methylcyclohexane methanol (MCHM), a chemical used in the coal mining industry as a cleansing agent. A significant amount of MCHM leaked into the Elk River, flowed into a water treatment plant, and contaminated the water supply of Charleston and the surrounding areas for several days. Freedom did not have a permit required by law that would have allowed the company to discharge MCHM into the Elk River.

Beginning in 2002, Reynolds worked with Freedom as an environmental consultant and was responsible for developing and maintaining pollution prevention plans. Reynolds admitted that he should have developed and maintained a storm water pollution prevention plan and a groundwater protection plan for the MCHM storage tanks that could have prevented the chemical spill. Freedom did have a permit issued by West Virginia’s Department of Environmental Protection that allowed for the discharge of storm water and groundwater subject to monitoring and reporting requirements. However, this permit did not allow for the discharge of MCHM, and required the development and maintenance of a storm water plan and a groundwater plan. Generally, storm water and groundwater plans identify potential sources of pollution and outline steps to prevent, contain, and reduce pollutants.

Reynolds admitted that he should have known of this requirement. He also admitted that while there was no storm water or groundwater plan in place at Freedom’s facility on the Elk River, there were such plans implemented at another facility operated by Freedom in Nitro. Reynolds even provided training to Freedom’s employees at the Nitro facility on its plans, despite the absence of similar plans at Freedom’s facility by the Elk River.

Reynolds knew of and should have appreciated the hazards associated with MCHM and the need to take reasonable steps to ensure that it did not spill into the Elk River. Reynolds admitted that he carried out his duties without due care for regulatory and environmental compliance, and that his failure to implement a storm water plan was a proximate cause of the 2014 chemical spill of MCHM.

Reynolds is the first defendant sentenced as part of the investigation into the chemical spill. Freedom itself, which has been in bankruptcy since shortly after the chemical spill, pleaded guilty to violating the Clean Water Act, the unlawful discharge of refuse matter in violation of the Refuse Act, and violating an environmental permit. Freedom is scheduled to be sentenced on February 4, 2016.

Charles E. Herzing, of McMurray, Pennsylvania, and William E. Tis, of Verona, Pennsylvania, former owners of Freedom, each pleaded guilty in March 2015 to the unlawful discharge of refuse matter in violation of the Refuse Act. Herzing is scheduled to be sentenced on February 2, 2016. Tis is scheduled to be sentenced on February 8, 2016.

Michael E. Burdette, of Dunbar, a plant manager for Freedom, pleaded guilty in March 2015 to violating the Clean Water Act by negligently discharging a pollutant, and is scheduled to be sentenced on February 4, 2016.

Dennis P. Farrell, of Charleston, a former Freedom president and owner, pleaded guilty in August 2015 to violating the federal Refuse Act and violating a permit by failing to have a pollution prevention plan. Farrell is scheduled to be sentenced on February 11, 2016.

Gary Southern, of Marco Island, Florida, the president of Freedom at the time of the spill, pleaded guilty in August 2015 to violating the Clean Water Act, negligently discharging refuse matter in violation of the Refuse Act, and violating a permit by failing to have a pollution prevention plan. Southern is scheduled to be sentenced on February 17, 2016.

The investigation of the chemical spill was conducted by the Federal Bureau of Investigation and the Environmental Protection Agency’s Criminal Investigation Division. Assistant United States Attorneys Philip H. Wright, Larry R. Ellis, and Eric P. Bacaj, as well as the Environmental Protection Agency’s Regional Criminal Enforcement Counsel Perry D. McDaniel, are handling the prosecutions. United States District Judge Thomas E. Johnston imposed the sentence, and will preside over the remaining sentencing hearings associated with the chemical spill.

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CHARLESTON, W.Va. – A Nicholas County man faces up to 20 years in federal prison after pleading guilty today to possessing images and videos of child pornography, announced Acting United States Attorney Carol Casto. Derrick Young, 33, of Nallen, West Virginia, entered his guilty plea in federal court to the child pornography crime.

Young admitted that on May 21, 2014, he possessed images and videos of prepubescent minors engaged in sexual acts. The images and videos were contained on his personal cell phone located at his residence in Nallen.

Sentencing is scheduled for April 26, 2016. Young faces a fine of up to $250,000, a lifetime period of supervised release, mandatory registration as a sex offender, possible restitution to the victims of his offense, and the forfeiture of computers and cell phones that contained the child pornography.

The Department of Homeland Security and the West Virginia State Police conducted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. The defendant entered his plea before United States District Judge John T. Copenhaver, Jr.

This case is being brought as part of an ongoing initiative by the United States Attorney’s Office to combat child sexual exploitation and abuse in the Southern District of West Virginia.

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FAYETTEVILLE MAN SENTENCED TO  OVER 11 YEARS IN FEDERAL PRISON FOR IMMIGRATION AND DRUG TRAFFICKING OFFENSE

            Fayetteville - Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Melquaides Lopez-Del Angel, aka Eduardo Lopez-Corpus, aka Nacho, age 40, of Fayetteville, was sentenced to 135 months in federal prison on one count of Possession with Intent to Distribute More than 500 Grams of a Mixture or Substance Containing Methamphetamine in violation of 21 U.S.C. 841(a) and (b)(1)(A)(viii) and 120 months on one count of Illegal Reentry by Removed Alien Following a Felony Conviction. Lopez’s sentence will run concurrently and be followed by five years of supervised release.  The Honorable Timothy O. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.

            According to court records, Lopez was caught by the Benton County Sheriff’s Office and the Drug Enforcement Administration (DEA) in the parking lot of a Rogers, Arkansas restaurant waiting to make a delivery of methamphetamine.  A search of the vehicle in which he was traveling yielded what was later confirmed to be 646 grams of actual methamphetamine.  When interviewed by investigators, Lopez admitted he had come to the restaurant to deliver the methamphetamine to another person, and that he had done so on two or three previous occasions.  After arrest, it was also determined by Immigrations and Customs Enforcement that Lopez had been previously removed from the United States by deportation in 2013 and was currently in the country without lawful permission.  Lopez pleaded guilty to the charges in September, 2015.

            This case was investigated by the Benton County Sheriff’s Office, the Drug Enforcement Administration, and Immigrations and Customs Enforcement.  Assistant United States Attorney Brandon Carter prosecuted the case for the United States.

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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov

HUNTINGTON, W.Va. – Three men who conspired to distributed heroin in 2014 and 2015 were sentenced today in federal court, announced Acting United States Attorney Carol Casto. Cordell Lopasker McCarrall, Jr., 22, of Detroit, was sentenced to three years and a month in federal prison for possession with intent to distribute heroin. Roger Lee Black, 34, of Barboursville, was sentenced to four years and nine months in federal prison for distribution of heroin. Alan R. Nolan, 36, of Chesapeake, Ohio, was sentenced to two and a half years in federal prison for distribution of heroin.

From November 2014 to April 2015, McCarrall, Black, and Nolan conspired to distribute heroin in the Huntington area. McCarrall frequently supplied heroin to Black during this time period. Black would distribute the heroin with the assistance of Nolan. On February 26, 2015, a confidential informant working at the direction of the Drug Enforcement Administration (DEA) contacted Black to arrange the purchase of heroin. Black met the informant and drove the informant to Black’s residence located at 21 Vincent Street in Barboursville. Inside the residence, Black distributed approximately 10 grams of heroin to the informant in exchange for $1,200. 

On March 3, 2015, a confidential informant again contacted Black to arrange another drug deal. Black and Nolan met the informant in the parking lot of a car dealership near Hal Greer Boulevard in Huntington, where Nolan distributed approximately 10 grams of heroin to the informant in exchange for $1,200.

On April 2, 2015, law enforcement executed a search warrant at a residence located at 2017 9th Avenue in Huntington. During the execution of the warrant, McCarrall ran from the residence and was quickly caught. As a result of the search, law enforcement discovered approximately 90 grams of heroin, $6,700 in cash, paraphernalia used to distribute heroin, and a magnetic concealment box commonly used to transport heroin. McCarrall admitted that he possessed and intended to sell the heroin seized from the residence.

All three men admitted that they were responsible for distributing up to 700 grams of heroin during the conspiracy. Black also admitted that he possessed multiple firearms during the conspiracy.

The DEA Task Force and the West Virginia State Police conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecutions. Chief United States District Judge Robert C. Chambers imposed the sentences.

This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.

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Acting United States Attorney Kenneth Elser
Western District of Arkansas

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FOR IMMEDIATE RELEASE                   CONTACT: Joyce Snow
   February 2, 2016                                          PHONE: (479) 494-4066

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MAN SENTENCED TO  OVER 3 YEARS IN PRISON FOR POST OFFICE ROBBERY

            Hot Springs, Arkansas - Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that James Calk, age 38, of Norphlet, Arkansas, was sentenced to 46 months in prison and three years supervised release for Robbery of a Post Office. The Honorable Susan O. Hickey presided over the sentencing hearings in the United States District Court in Hot Springs.

            According to court records, on or about October 2, 2014, officers responded to a robbery at a Hot Springs post office.  During the robbery, a man later identified as Calk approached the clerk as a customer and then demanded all of the cash in the drawer.  The clerk initially refused, but then complied after Calk indicated that he had a gun. Calk pleaded guilty to the charge on June 26, 2015.

            This case was investigated by the Hot Springs Police Department and United States Postal Inspectors. Assistant United States Attorney Sydney Butler prosecuted the case for the United States.

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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov

GREAT FALLS – Deputy Cascade County Attorney Jennifer Quick was honored today for her work on the Cascade County Veterans Court.  Quick was presented with a certificate of appreciation from the United States Attorney’s Office for the District of Montana at the February 2nd Veterans Court graduation by Assistant U.S. Attorneys Jeff Starnes and Joe Cik, acting on behalf of Montana U.S. Attorney Mike Cotter.

The Cascade County Veterans Court was established in 2013.  In March of 2015, because of a collaborative agreement between Montana’s Eighth Judicial District Court, the Montana Federal District Court, and the U.S. Attorney’s Office, the Veterans Court began accepting qualifying veterans charged with federal crimes.  The Veterans Court serves as an alternative to prison for qualifying veterans.  Participants are required to engage in intensive multi-stage professional counseling and treatment for substance abuse, mental health, disability, and other issues including but not limited to those related to their military service.  They are also required to abide by strict conditions, follow rigorous treatment plans, and attend scheduled hearings before a judge.

Quick served as the founding prosecutor of the Cascade County Veterans Court from 2013 to 2015.  “Jennifer is personally and professionally passionate about veterans’ issues,” said Judge Greg Pinski of the Eighth Judicial District, who oversees the Veterans Court.  “She went above and beyond by engaging in outreach efforts to expand enrollment and educate other Montana prosecutors on the benefits of the Veterans Court.  Without her support and hard work, the Cascade County Veterans Court would not exist.”

“Jennifer Quick and Judge Pinski are to be commended for their instrumental roles as catalysts for the Cascade County Veteran’s Court, and we look forward to a continuing state and federal collaboration,” said Montana U.S. Attorney Mike Cotter.  “The U.S. Attorney’s Office is grateful for the opportunity to participate in the forum they have created to give veterans charged with federal crimes an opportunity to obtain structured treatment that will allow them to return to their lives, families, and communities in Montana.”

Quick’s recognition followed a graduation ceremony honoring three new Veterans Court graduates.  Since its inception in 2013, twenty-four veterans have participated in the Cascade County Veterans Court.  Today’s graduates bring the number of program graduates to eleven.  Twelve participants, including one federal probationer, are currently enrolled in the program.