Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announced today that Andrew Ryan Leslie (22, Middleburg) has pleaded guilty to two federal charges that he sexually abused an infant and a toddler, and used them to produce images and videos of child pornography. He faces a mandatory minimum penalty of 15 years, up to 60 years, in federal prison and a potential life term of supervision. A sentencing date has not yet been set. Leslie has been in federal custody since his arrest on October 18, 2016.    

According to court documents, in 2015, agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations began an investigation into websites known to host images and videos depicting child pornography. In 2016, Leslie was positively identified as a member of one of these websites. On October 18, 2016, HSI agents and other law enforcement officers executed a federal search warrant at Leslie’s residence in Middleburg, Florida. Upon entering the residence, agents observed Leslie emerging from the master bedroom. Leslie stated that a minor child, referred to by Leslie as a “toddler,” had been in bed with him when the agents arrived. 

During the search, agents located a digital camera next to Leslie’s bed in the master bedroom. Within the camera was a micro SD card containing a series of pornographic images depicting Leslie with two different minor children. In several of the images, the same toddler (approximately two years old) was depicted. Other images depicted a different infant less than a year old. These images depicted Leslie sexually abusing both children.  

Agents also seized several laptop computers, computer hard disk drives, tablets, cell phones, and cameras from Leslie’s residence. A forensic analysis of these items revealed that Leslie had produced, received, distributed, and possessed numerous images and videos depicting child pornography. Recovered logs of online conversations between Leslie and other individuals showed that Leslie had discussed engaging in sexual activity with several minor children.

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Clay County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.

It is another case 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 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/pscand click on the tab "resources."

LITTLE ROCK—Cody Hiland has taken the oath of office to become the United States Attorney for the Eastern District of Arkansas. Mr. Hiland was nominated by President Donald Trump on June 29, 2017, and confirmed by the U.S. Senate on September 28, 2017. He took the oath of office today at 1:30 p.m. from United States District Court Judge J. Leon Holmes, and began work immediately after the ceremony.

"It is both an honor and a privilege to be chosen to serve as the United States Attorney, and I am eager to begin leading the important work of this office," Mr. Hiland said. "I also look forward to working with the dedicated public servants in our office, our exceptional law enforcement partners on the federal, state, and local levels, and the community. At a time when we are seeing the national crime rate continue to rise, myself and everyone in this office is committed to ensuring safer communities for the citizens of the Eastern District."

As U.S. Attorney, Mr. Hiland is the top-ranking federal law enforcement official in the Eastern District of Arkansas, which includes five divisions and 41 counties within Arkansas, with its primary office in Little Rock. He oversees a staff of 59 employees, including 28 attorneys and 31 non-attorney support personnel. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.

Mr. Hiland, 45, a Conway native, has lived in Arkansas his entire life. He received his J.D. from the William H. Bowen School of Law in Little Rock and his undergraduate degree from the University of Central Arkansas. Prior to assuming his current role, Mr. Hiland was elected prosecuting attorney for the 20th Judicial District of Arkansas in 2010, and re-elected in 2014.

Before beginning a career in law enforcement Mr. Hiland was a partner at Hiland, Thomas & Cox, PLLC; a staff attorney and rural and community liaison for the Arkansas Public Service Commission; the program director for the Arkansas Transitional Employment Board; and a legislative liaison and aide to Gov. Mike Huckabee.

Mr. Hiland will continue to live in Conway with his wife, Jana, and their four children, Claire, Caity, John Reagan, and Ethan.

Mr. Hiland succeeds Patrick C. Harris, who had served as acting U.S. Attorney since Christopher Thyer’s resignation on March 13, 2017.

United States Citizenship and Immigration Services Officer Jovany Perez, 34, of Miami, Florida, was sentenced to 48 months imprisonment following his conviction for receiving a bribe while a public official.

Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida, and Jay Donly, Special Agent in Charge, Department of Homeland Security, Office of the Inspector General (DHS-OIG), made the announcement.

According to the evidence, on April 20, 2017, Perez interviewed a female alien beneficiary in his capacity as a United States Citizenship and Immigration Services (“USCIS”) officer assigned to adjudicate her immigration application. The interview related to the validity of the beneficiary’s marriage, which would have afforded her lawful permanent residency in the United States if found to be valid. During the interview, Officer Perez confronted the beneficiary with his belief that her marriage was fraudulent.  Perez completed and directed the beneficiary to sign a written statement, purporting to be a confession by beneficiary that she had committed marriage fraud.  At the conclusion of the interview, Perez provided the beneficiary with his contact information and told her that he could help her with her case, but could not do so at the USCIS office.

Later that same day, the beneficiary contacted Perez and they scheduled to meet later that day in the parking lot of a restaurant located in Miami-Dade County. During the meeting, while sitting with the beneficiary in his vehicle, Perez fondled the beneficiary’s breasts, asked her whether she was wearing a wire, and exposed his penis to her. Perez explained to her that he was the ultimate decision maker in her case, and stated that the two could have a sexual encounter there in the vehicle. The beneficiary declined and the two agreed to meet on a later date.

On May 9, 2017, the beneficiary met with Perez and Perez informed her that he possessed her file, that he would remove her written statement from the file, and that he would replace it with another statement that he would help her draft. When the beneficiary asked Perez what she would have to do in exchange for his assistance, Perez stated that if she did not want to exchange sex, she could pay him money. The two agreed that the beneficiary would pay Perez $2,000.00 in exchange for his assistance.

On May 17, 2017, Perez accepted $2,000.00 from the beneficiary, in return for his promise to remove the previously-written statement regarding the validity of her marriage and replace it with a statement to assist her permanent residency petition. Perez was arrested that same day, and was charged by Complaint and then Indictment of Receiving a Bribe in violation of 18 U.S.C., Section 201(b)(2)(A).

On July 26, 2017, Perez pled guilty to the Receiving a Bribe charge in the Indictment. 

On October 6, 2017, Perez was sentenced to a four-year term in prison, followed by a three-year term of supervised release.

Mr. Greenberg commends the investigative efforts of the DHS-OIG. This case was prosecuted by Special Assistant United States Attorneys Michele S. Vigilance and Monica V. Atkins and Assistant United States Attorney Jessica Kahn Obenauf.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that MARIO HERRERA, a/k/a “Mo,” was sentenced today to 151 months in prison for conspiring to distribute cocaine and oxycodone.  HERRERA pled guilty to one count of narcotics conspiracy on June 2, 2017, before U.S. Magistrate Judge Barbara C. Moses.  U.S. District Judge Loretta A. Preska imposed today’s sentence. 

Acting U.S. Attorney Joon H. Kim said:  “Mario Herrera led a massive drug trafficking organization that stole and forged prescriptions to illegally distribute an estimated 40,000 oxycodone pills.  Herrera’s contribution to the ongoing opioid crisis has now earned him over 12 years in federal prison.  We commend the hard work of the DEA and ATF on this important case.”

According to the Indictment and other documents filed in federal court, statements made at various proceedings in this case, and materials presented at the sentencing hearing:

From in or about late 2012 up to and including in or about December 2015, HERRERA was the leader of a drug trafficking organization (the “Herrera DTO”) that distributed large quantities of oxycodone and cocaine in the Bronx and elsewhere.  As part of his plea, HERRERA admitted his involvement in the distribution of the equivalent of 40,000 oxycodone 30-milligram pills.  In order to obtain the oxycodone that the Herrera DTO distributed, HERRERA, among other things, obtained stolen prescription pads, fabricated oxycodone prescriptions, and then pretended to be a doctor when called by pharmacies to verify the prescriptions.  In addition, HERRERA purchased oxycodone from legitimate prescription holders and others in his community for redistribution.  HERRERA also coordinated the procurement and distribution of cocaine.  As part of this cocaine distribution, HERRERA traveled to Mexico, Texas, and elsewhere.     

*                *                  *

In addition to the prison term, HERRERA, 32, of the Bronx, New York, was sentenced to seven years of supervised release.  

Mr. Kim praised the outstanding investigative work of the Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives in this investigation. 

This prosecution is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Gina Castellano, Jordan Estes, and Jason A. Richman are in charge of the prosecution.

Spokane - Joseph H. Harrington, Acting United States Attorney for the Eastern District of

Washington, announced that the U.S. Department of Justice (DOJ) and Sage Tee LLC (Sage Tee), a

subcontractor at the Department of Energy's (DOE) Hanford Site, and its owner, Laura Shikashio,

have reached an agreement wherein Sage Tee and Ms. Shikashio have agreed to pay $235,000 to

resolve allegations that they violated the False Claims Act (FCA) in connection with bidding -

receiving two small business subcontracts at DOE's Hanford nuclear site.

Between 2005 and 2016, Washington Closure Hanford, LLC (WCH), a jointly owned by AECOM,

Bechtel National Inc., and CH2M Hill Companies Ltd., was a DOE prime contractor that was

awarded a multi-billion dollar River Corridor Closure Contract (RCC) at DOE's Hanford Site.

WCH was responsible for environmental remediation on Hanford's River Corridor. WCH workers

were responsible for cleaning up waste sites at Hanford, decontaminating and decommissioning

former plutonium production nuclear reactors and surplus facilities, and disposing of contaminated

waste. The RCC required WCH to award a certain percentage of subcontracts to eligible and

qualified small and disadvantaged businesses, including woman-owned small businesses. Pursuant

to the WCC, DOE fully reimbursed WCH for the amounts WCH paid to subcontractors so long as

they were reasonable and allowable under the contract.

The case originally arose out of a whistleblower complaint filed in U.S. District Court by Savage

Logistics LLC, a Hanford-area small business, and Salina Savage, its owner. In December 2013, the

United States filed a Complaint intervening in the lawsuit, alleging that WCH, Sage Tee LLC (an

entity that purported to be a small, disadvantaged business), Laura Shikashio, the owner of Sage Tee,

and another entity known as Federal Engineers and Constructors (FE&C), violated the False Claims

Act (FCA) with respect to two multi-million dollar subcontracts arranged between WCH and Sage

Tee. The Complaint alleges that WCH, Sage Tee, Ms. Shikashio, and FE&C knowingly

misrepresented Sage Tee to be a qualified disadvantaged small business in order to he eligible for

two multi-million dollar subcontracts that were designated for truly qualified small disadvantaged

businesses. The Complaint further alleges that Sage Tee was not a legitimate small, disadvantaged

business; rather it was a pass-through front company for FE&C, which performed substantially all of

the work on WHC's improperly awarded subcontracts. This settlement resolves Sage Tee and Ms.

Shikashio's liability. See attached Settlement Agreement.

Last month, FE&C agreed to pay $2.0 Million to resolve its own liability exposure. WCH continues

to deny liability and the United States' case against WCH continues.

Joseph H. Harrington said, "Small business fraud not only harms the taxpayers and the vital cleanup

mission at Hanford, but also legitimate small, disadvantaged businesses that are cheated from the

opportunity to fairly compete for and perform DOE subcontracts. I want to commend the

Department of Energy Office oflnspector General (DOE-OIG) and the Small Business

Administration Office of Inspector General (SBA-OIG) for the outstanding efforts investigating and

uncovering the scheme perpetrated here. Harrington added, "The United States Attorney's Office

for the Eastern District of Washington, together with our federal law enforcement partners, will

continue to vigorously pursue large and small business fraud at Hanford."

"The false statements in this case were intended to deceive the government into believing that a

woman-owned small, disadvantaged business was performing valuable work as a government

subcontractor," said Small Business Administration Acting Inspector General Hannibal "Mike"

Ware. "OIG will aggressively pursue parties that, through fraud, gain access to SBA's small

business contracting programs. I want to thank the U.S. Attorney's Office for their dedication to

enforcing compliance in SBA's contracting programs."

Department of Energy Acting Inspector General April G. Stephenson said, "The Department of

Energy Office of Inspector General is committed to ensuring the integrity of Departmental contracts

and financial expenditures. We will continue to investigate allegations of fraudulent diversion of tax

dollars throughout DOE programs. This settlement is a result of our staffs dedicated work to ensure

public funds are properly used for the mission-related purposes for which they are intended. We

appreciate the support of Department of Justice's and Department of Energy's attorneys in these

matters."

The Savage whistleblowers will receive approximately $47,000 of the $235,000 settlement DOJ

reached with Sage Tee and Shikashio due to their own private efforts in reporting and exposing the

described scheme to the DOE and DOJ.

DOE-OIG and SBA-OIG conducted the investigation on the Relators' whistleblower complaint.

The DOJ's lawsuit is being prosecuted by Tyler H.L. Tornabene, Vanessa R.Waldref, and Daniel

Fruchter, Assistant United States Attorneys for the Eastern District of Washington.

This case is captioned United States of America ex rel. Salint;J Savage, Savage Logistics LLC, vs.

Washington Closure Hanford LLC, Federal Engineers and Constructors, Inc., Sage Tee LLC, and

Laura Shikashio, EDWA Cause No. CV-10-5051-SMJ.

GREENVILLE – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Senior United States District Judge Malcolm J. Howard sentenced THOMAS PAUL KEELER, II, 48, from Raleigh to 240 months in prison, lifetime of supervision upon release and a $5,000.00 fine for the Receipt of Child Pornography (CP).  KEELER pled guilty to the charge on May 12, 2017.

On February 26, 2016, the Homeland Security Investigation (HSI) in Tampa, Florida contacted HSI in Raleigh utilizing an unidentified smart phone to post child pornography (CP) in several chatrooms. After identifying the subscriber of the chatroom, an undercover agent (UC), posing as the father of a 13-year-old female, subsequently contacted the individual.

The perpetrator’s chat conversations were graphic and explicit in nature as he repeatedly expressed a desire to meet the UC and his fictional 13-year-old daughter in person.  He and the UC subsequently arranged a meeting at the Red Roof Inn (RRI) in Cary, North Carolina. The suspect made it clear through his chat conversations that his intentions were to engage in sexually prohibited conduct with the 13-year-old female. Agents located the suspects profile page and utilized facial recognition software to identify THOMAS PAULKEELER, II, a registered sex offender, as the individual utilizing the chatroom.

On March 24, 2016, agents arrested KEELER as he entered the RRI parking lot.  A search of KEELER’s vehicle incident to his arrest uncovered a condom and a pair of handcuffs. Additionally, the defendant’s smartphone was seized.  Subsequent to his arrest, KEELER provided an unprotected statement to authorities. Specifically, the defendant acknowledged being previously arrested and convicted of Transportation of Child Pornography; however, he noted that he pulled into the RRI parking lot in order to send a text to a friend.

A search warrant was executed on KEELER’s residence where agents seized two computers, a hard drive, and a flash drive. Additionally, several pairs of women’s underwear and multiple sex toys were located.  A forensic preview of the defendant’s smartphone revealed multiple groups in a chatroom utilized for CP, related to the distribution of CP.  Investigation confirmed the defendant acted as an administrator for one group that traded CP. In order to become a member of the group, an individual was required to post an image of CP or he/she was banned from entering the group.  KEELER also distributed/traded CP via a Dropbox account to members in the chat group.  Agents found 51 videos containing CP in Dropbox links.  Investigation also revealed KEELER engaged in multiple chat conversations with “young girls” between August 8, 2015, and March 24, 2016.

Forensic examination of KEELER’s smartphone and computer equipment revealed at least 1,433 images of CP and 470 videos containing CP.  KEELER’s collection of CP contained images and videos of infants.  Furthermore, several videos depicted sadistic or masochistic conduct or other depictions of violence.

KEELER was previously convicted of Transportation of Child Pornography in Interstate Commerce in this District on September 5, 2000.

The case was investigated by Homeland Security Investigations (HSI) and the Cary Police Department.  The federal prosecution was handled by Assistant United States Attorney Ethan A. Ontjes.

This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level.  For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.

A Lauderhill, Florida, man pleaded guilty today to aggravated identity theft and conspiring to use stolen IDs to file fraudulent tax returns, announced Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. 

According to documents filed with the court, from approximately 2008 through January 2015, in Broward and Miami-Dade Counties, Evens Julien and others, used stolen IDs, including the personal identifying information of prisoners and deceased individuals, to file over 2,000 tax returns with the Internal Revenue Service (IRS).  These fraudulent returns sought more than $2 million in refunds.  Julien and his co-conspirators recruited others to obtain Electronic Filing Identification Numbers (EFIN) from the IRS in their names and used the EFINs to file the fraudulent returns.  They directed the refunds to debit cards and treasury checks and had them mailed to South Florida addresses.  They then cashed the fraudulently obtained refund checks at check cashing stores and used Western Union and ATMs to withdraw the funds.   

Sentencing is scheduled for Dec. 27 before U.S. District Court Judge Federico A. Moreno.  Julien faces a statutory maximum sentence of five years in prison for the conspiracy charge and a mandatory minimum sentence of two years in prison for the aggravated identity theft charge.  He also faces a period of supervised release, restitution and monetary penalties. 

Acting U.S. Attorney Greenberg and Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

BOSTON – An Andover woman was sentenced today in federal court in Boston for stealing more than $100,000 from her employer.

Stacy Fortunato, 36, was sentenced by U.S. Senior District Judge Mark L. Wolf to 15 months in prison, three years of supervised release, and ordered to pay restitution in the amount of $112,806.  In June 2017, Fortunato pleaded guilty to one count of bank fraud and one count of wire fraud.

While employed as a nanny from November 2014 to February 2016, Fortunato’s employer provided her with a credit card to make purchases solely related to her work duties.  Instead, Fortunato made unauthorized charges and cash withdrawals using the credit card on hundreds of occasions, totaling approximately $86,000.  To conceal what she had done, Fortunato made unauthorized electronic payments from her employer’s bank account to her employer’s credit card account.  Fortunato also wrote checks for her own personal benefit on her employer’s bank account, forging her employer’s signature to the checks before cashing them.  In total, Fortunato defrauded her employer of about $113,000. 

Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Mark J. Balthazard of Weinreb’s Economic Crimes Unit prosecuted the case.

Two individuals were charged with securities fraud, money laundering and obstruction of justice offenses in connection with a scheme to sell fraudulently registered shares of public companies and to hide and conceal these activities and the proceeds from the United States District Court for the Eastern District of New York.  This case is part of the ongoing Shell Factory Fraud criminal investigation.

            Randy A. Hummel, Executive Assistant United States Attorney, U.S. Attorney’s Office for the Southern District of Florida, and Timothy R. Langan, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement. 

Myron Gushlak, 47, a Canadian citizen who formerly resided in Miami Beach and the Cayman Islands, and Yelena Furman, a/k/a “Elena Furman,” 36, of New York, were charged by indictment with conspiracy to commit securities fraud, in violation of Title 18, United States Code, Section 1349; five counts of securities fraud, in violation of Title 18, United States Code, Section 1348; conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h); two counts of money laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i); and, obstruction of official proceeding, in violation of Title 18, United States Code, Section 1512(c)(2).  The defendants face a maximum statutory sentence of twenty-five years for the conspiracy and securities fraud counts, twenty years each for the conspiracy to commit money laundering and money laundering counts, and twenty years for the obstruction count, as well as a fine up to $250,000 or double the proceeds as to each.  The case is No. 17-CR-20713-CMA and is assigned to U.S. District Judge Cecilia M. Altonaga in Miami. 

In related cases, seven defendants have been charged to date: Daniel McKelvey, 49, of Foster City, California, and Jeffrey L. Lamson, 51, of El Dorado Hills, California, were charged in Case No. 16-20546-CR-RNS; Steven Sanders, 73, of Lake Worth, Florida, and Alvin S. Mirman, 78, of Sarasota, Florida, were charged in Case No. 16-20572-CR-CMA; Sheldon Rose, 77, of Sarasota, and Ian Kass, 45, of Ft. Lauderdale, in Case No. 16-20707-CR-JEM, and David Lubin, 52, of West Hempstead, New York, in Case No. 17-20508-CR-MGC.  All seven of these defendants were convicted.   Six of the seven have already been sentenced, and sentencing for Lubin is scheduled for November 2, 2017, before U.S. District Judge Marcia G. Cooke in Miami. 

The indictment alleges that Gushlak was convicted of conspiracy to commit securities fraud and conspiracy to commit money laundering in Case No. 03-833-CR-NGG in the United States District Court for the Eastern District of New York (the “EDNY Criminal Case”).  On November 18, 2010, the court sentenced Gushlak to 72-months imprisonment and ordered him to pay a $25 million fine due immediately.  After lengthy restitution proceedings, on May 15, 2012, the court ordered Gushlak to additionally pay restitution of approximately $17.4 million, also due immediately.

The indictment alleges that while Gushlak was on bond in the EDNY Criminal Case leading up to his November 2010 sentencing, and while he was serving his prison sentence, Gushlak, Furman, Lubin, and others participated in a scheme to fraudulently register and sell securities of public shell companies.  This included the fraudulent filing of documents with the U.S. Securities and Exchange Commission (SEC), using the sister-in-law of Furman as a nominee chief executive officer (CEO).  This was done, according to the indictment, to conceal the role of Gushlak and his control over shares that were purportedly owned in the names of others.  The indictment alleges that these shares were then sold to other co-conspirators who were located in Miami-Dade and Broward Counties, Florida, and that the shares were then illegally sold to the investing public.

In another instance, according to the indictment, after Gushlak was sentenced to federal prison and serving his sentence, Gushlak, Furman, Lubin, Sanders, McKelvey and Lamson worked together to fraudulently sell the free-trading shares of Entertainment Art, Inc. (“EERT”).  The allegations include meetings with Gushlak while he was serving his federal prison sentence at which the conspirators discussed the details of the fraudulent transactions.  After causing false and fraudulent flings with the SEC, the shares were then sold to criminal actors.  These criminal actors were then in a position to conduct a significant pump and dump stock swindle involving Biozoom, Inc. (“BIZM”) after causing a reverse merger of EERT into BIZM.

The indictment alleges that, because Gushlak’s assets were frozen by the United States District Court in the EDNY Criminal Case, and he had been ordered to pay a $25 million fine and restitution of approximately $17.4 million, Gushlak, Furman, Sanders and others engaged in elaborate steps to hide and conceal the proceeds of these stock sales from the United States District Court in Brooklyn, New York.  According to the indictment, Gushlak and Furman enlisted the assistance of Sanders and others to use the trust account of an attorney in Boca Raton, Florida, to wire the funds in such a way that they would be difficult or impossible to attribute to Gushlak.  This included wiring funds to an intermediary in Switzerland and to an account controlled by Furman in New York that was used to pay Gushlak’s bills while he was in prison.

Mr. Hummel commended the investigative efforts of the FBI’s Miami and New York Field Offices.  Mr. Hummel also thanked the SEC’s Miami Regional Office and Washington Home Office for their assistance with the ongoing Shell Factory Fraud investigation.  This matter is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.

An indictment merely contains allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.  

CAMDEN, N.J. – A Camden man was sentenced today to 96 months in prison for selling crack cocaine, Acting U.S. Attorney William E. Fitzpatrick announced.

Nafeez Griffin, a/k/a “Feez,” 31, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to an information charging him with one count of distribution and possession with intent to distribute cocaine base. Judge Simandle imposed the sentence today in Camden federal court.

According to documents filed in this case and statements made in court:

Griffin admitted that on Nov. 30, 2015, he sold crack cocaine to an undercover officer on the 1100 block of Lansdowne Avenue, which was then under the control of a drug distribution organization of which he was a member. Griffin also admitted that other members of the organization supplied drugs to him, and that he made sales of crack cocaine on other occasions. Griffin and others were originally charged by complaint on Sept. 9, 2016, following a long-term investigation by the FBI’s South Jersey Violent Offender and Gang Task Force. Law enforcement officers seized drugs and recovered two handguns that were kept by members of the conspiracy in connection with the organization’s drug trafficking activities.  Investigators also intercepted communications pursuant to court-authorized wiretaps on cellular telephones used by several members of the conspiracy.

In addition to the prison term, Judge Simandle sentenced Griffin to three years of supervised release.

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Rick Fuentes, with the investigation leading to today’s sentencing.

He also thanked the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.

The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.

DENVER – Two Denver men were arrested late September for the August 10, 2017 theft of firearms from the Cabela’s in Lone Tree, Colorado, Acting U.S. Attorney Bob Troyer and ATF Denver Division Special Agent in Charge Debora Livingston announced.  A third man also charged with the Cabela’s theft is currently in state custody on unrelated charges.  These arrests as well as many others are part of local law enforcement’s efforts, working with the ATF and the Colorado U.S. Attorney’s Office, to address multiple burglaries of gun stores throughout Colorado.  To date, 10 individuals have been charged federally for theft of firearms from federal firearms licensees.  Those cases are pending. 

 “These are no property crimes.  These are life and death crimes.  Stolen guns go straight into the hands of criminals, not hunters and target shooters,” said Acting U.S. Attorney Bob Troyer.  “The people who bring this violence into our communities will be introduced to federal justice, up close and personal, for a long time.”

“Investigating these thefts is ATF’s top priority in Colorado,” said ATF Special Agent in Charge Debora Livingston. “We will be relentless. If someone is involved, we will find them. A potential ten-year prison sentence is a significant punishment for two minutes of crime.”

In 2017 alone, over 400 firearms have been stolen.  Arrests for those thefts also have been made in connection with thefts from South Platte Tactical gun store in Adams County, Top Dollar Pawn Shop in El Paso County, Best Way Sales in Baca County, Shooter Ready in Jefferson County, Dragon Arms in El Paso County, and Parker Arms in Jefferson County.  Those charged by indictment with thefts from those firearm licensees include:

Cabela’s

On August 10, 2017, Darnell Hudgens, age 2,3 of Denver, Colorado, Giavanni Edward Miles, age 21, residence unknown, and Kendall Crockett, age 23, of Denver, Colorado, with others, conspired to steal firearms from Cabela’s in Douglas County, City of Lone Tree.  On August 21, 2017, those same defendants stole firearms from the Cabela’s in Thornton, Colorado.  The defendants are charged by indictment with possessing stolen firearms, conspiracy to steal firearms from a federal firearm licensee, and disposal of the weapons. 

South Platte Tactical

On January 8, 2017, Gaven Alfonso Orozco, age 20, of Adams County, Colorado, and Jordan Martinez, age 19, of Denver, Colorado, conspired to and stole firearms from the South Platte Tactical gun store in Adams County.  The defendants broke into the store and removed the firearms.  Those involved in the theft stole a vehicle, drove to the gun store location, stole the firearms, and fled.  The indictment states that on January 13, 2017, Orozco possessed, concealed, stored and disposed of stolen firearms.  The firearms were then distributed amongst members of the conspiracy.  The defendants face charges including possession of stolen firearms, conspiracy to steal firearms, theft of firearms from a federal firearms licensee. 

Top Dollar Pawn

On July 10, 2017, Adam Paul Mowery, age 41, of Colorado Springs, Colorado, stole firearms from Top Dollar Pawn Shop in El Paso County.  He then possessed, concealed, stored and disposed of the stolen firearms.  On July 25, 2017, Cole Truitt Anderson, age 26, of Florissant, Colorado, possessed, concealed, stored and disposed of stolen firearms.  Anderson also possessed a stolen sawed-off shotgun.  Both defendants face charges of possession of stolen firearms, possession of firearms by a prohibited person, possession of unregistered firearms. 

Dragon Arms

On August 27, 2017, Jennifer Scoggin, Camron Specht, Ryan Sharpe, and Gian Carlos Vance, allegedly stole firearms from Dragon Arms in El Paso County, Colorado, where defendants stole multiple handguns, shotguns, and rifles.  The defendants face theft of firearms from a federal firearms licensee. 

Best Way Sales

On August 10, 2017, Calvin Terrell Stafford, age 23, of Warrensburg, Missouri, and Napoleon Williams, age 23, of St. Louis, Missouri, conspired to steal firearms from Best Way Sales, located in Baca County, in the city of Springfield, Colorado.  They traveled from Missouri to Colorado, identified and cased Best Way Sales, and on August 11, 2017, broke into the store and stole firearms.  They then drove the stolen firearms back to Missouri.  The defendants face charges of conspiracy, theft of firearms from an federal firearms licensee, and possession of stolen firearms. 

Shooter Ready

On November 10, 2016, Viet Trinh, age 18 of Thornton, Colorado, possessed, concealed, stored and disposed of stolen firearms.  Trinh conspired with others to steal firearms from Shooter Ready gun store in Denver.  After the weapons were stolen, they were distributed to members of the conspiracy.  Trinh was the get-away-driver for the Shooter Ready burglary.  On December 17, 2016, Trinh conspired with others to steal firearms from Parker Arms in Jefferson County, City of Wheat Ridge.  He again was the get-away-driver.  He faces possession of stolen firearms, conspiracy, and theft of firearms from a federal firearms licensee. 

Aurora Police Department, Brighton Police Department, Castle Rock Police Department, Colorado Bureau of Investigation, Colorado Metro Auto Theft Task Force, Denver Police Department, Douglas County Sheriff’s Office, Edgewater Police Department, Jefferson County Sheriff’s Office, Lakewood Police Department, Littleton Police Department, Lone Tree Police Department, Parker Police Department, Thornton Police Department, Westminster Police Department, Wheat Ridge Police Department, Colorado Springs Police Department, El Paso County Sheriff’s Office, Springfield Police Department, and Baca County Sheriff’s Office have all assisted with gun store investigations.

The defendants are being prosecuted either by Assistant U.S. Attorney Colleen Covell and U.S. Attorney Timothy Edmonds. 

The penalties for conviction for these crimes range from not more than 5 years in federal prison to not more than 10 years in federal prison per count.  Defendants also face not more than a $250,000 fine.

In addition to those listed above, a number of individuals have been arrested and are being prosecuted by state authorities.

The charges contained in the indictments mentioned above are allegations, and the defendants are presumed innocent unless and until proven guilty.

BATON ROUGE, LA – Acting United States Attorney Corey Amundson announced today that U.S. District Court Judge John W. DeGravelles sentenced Justin Landry, age 36, of Central, Louisiana, to 128 months in federal prison as a result of his conviction for distribution of child pornography.  The Court further sentenced Landry to ten years of supervised release following his term of imprisonment.

On March 30, 2017, Landry pled guilty to distributing and possessing child pornography.  As part of his sentence, the Court also ordered Landry to pay restitution to a child portrayed in the child pornography.

Acting United States Attorney Corey Amundson stated, “Protecting our children is one of society’s most important responsibilities.  Stopping the distribution of child pornography goes directly toward fulfilling that responsibility.  Distributing child pornography proliferates images often depicting horrific child sexual abuse and rape, thus feeding the market and re-victimizing those children who suffered through the abuse.  If basic human decency will not deter this conduct, we hope that severe prison sentences will.”

Raymond R. Parmer, Jr., Special Agent in Charge of the New Orleans Field Office of Immigration and Customs Enforcement, stated, “Stopping the distribution of images of the sexual exploitation of children is an important role HSI has in protecting the victims.  The coordination with our law enforcement partners remains a priority to bring those that prey on our children to justice.”

This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the U.S. Department of Homeland Security, Homeland Security Investigations, the Louisiana Attorney General’s Office – Cyber Crime Unit, and the Ascension Parish Sheriff’s Office.

This matter is being prosecuted by Assistant U.S. Attorney Ryan R. Crosswell.

ALBUQUERQUE – Acting U.S. Attorney James D. Tierney and Acting Special Agent in Charge Jack P. Staton of Homeland Security Investigations (HSI) in El Paso, announced the filing of federal child sexual exploitation and pornography charges against Stephen Mendoza Arellano, an ordained minister for the Apostolic Assembly Church who serves as the Church’s District of New Mexico Youth President. 

Arellano, 30, of Las Cruces, N.M., made his initial appearance this morning in federal court on a criminal complaint charging him with attempted production of child pornography, enticement of a child to engage in sexual activity, and travel to meet a minor to engage in sexual conduct.  He remains in federal custody pending a preliminary hearing and a detention hearing, which have not yet been scheduled.

HSI Special Agents arrested Arellano on Oct. 6, 2017, on the criminal complaint, which alleges that Arellano committed the crimes charged between May 2017 and Aug. 2017 in Dona Ana County, N.M., and elsewhere.  According to the criminal complaint, Arellano traveled from Las Cruces to El Paso, Tex., with the intention of having illicit sexual contact with the child victim who was 15-years-old when he began contacting her.

According to the complaint, Arellano is a National Ordained Minister for the Apostolic Assembly Church, holds the title of District of New Mexico Youth President, and is a member of the same church as the victim.  HSI initiated the investigation into Arellano after receiving a report from the parents of Arellano’s victim.  The criminal complaint alleges that Arellano began communicating with the victim in a sexually explicit manner in May 2017, when the victim was fifteen-years-old.  It further alleges that Arellano sent nude photos of himself to the victim and requested nude photos of the victim via cellular phone messaging between May 2017 and Aug. 2017.  The complaint also alleges that Arellano engaged in sexual activity with the victim in July and Aug. 2017.  The investigation allegedly revealed that Arellano was aware of the victim’s age because he assisted in making a video for the victim’s Sweet 16 birthday party. 

If convicted on the attempted production of child pornography charge, Arellano faces a mandatory minimum penalty of 15 years and a maximum of 30 years in federal prison.  If convicted on the enticement charge, Arellano faces a mandatory minimum penalty of ten years and a maximum of life in federal prison.  If convicted on the traveling to engage in illicit sexual conduct charge, Arellano faces a maximum of 30 years in federal prison.  The charges in the complaint are merely accusations and Arellano is presumed innocent unless found guilty beyond a reasonable doubt.

This case was investigated by the Las Cruces office of HSI and the Las Cruces Police Department.  The case is being prosecuted by Assistant U.S. Attorney Marisa A. Ong as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse.  Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.

Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that TERRICK WASHINGTON,45, a registered sex offender, was sentenced to 262 months in prison by United States District Judge Kenneth M. Karas for his attempted enticement of a minor to engage in sexual activity.  Judge Karas also imposed a 5-year term of supervised release to follow the prison term.  The sentencing today followed WASHINGTON’s guilty plea on March 8, 2017.

Acting U.S. Attorney Joon H. Kim stated:  “Protecting children from those who prey on them is a priority for this Office and our partners at the FBI.  As today’s sentencing demonstrates, we will use every tool available to law enforcement to prosecute and punish those who sexually exploit children.” 

According to documents filed in this case and statements made in related court proceedings:

On or about December 21, 1993, Washington was convicted in New Jersey of Aggravated Sexual Assault and sentenced to a 15-year prison term.  As a result of that conviction, he was required to register in New Jersey as a sexual offender. 

In November 2015, an individual (the “Reporter”) advised the FBI that the Reporter, posing as a 13-year-old girl, had engaged in online communications with a person using the screen name “X.Terrick..X.”  During the communications, “X.Terrick..X” indicated that “X.Terrick..X” wanted to engage in sexual activities with the Reporter.  The FBI instructed the Reporter to continue to engage in discussions, to provide the FBI with daily logs of the communications, and to attempt to arrange a meeting with “X.Terrick..X.”

Between November 6, 2016, and November 27, 2015, the Reporter and “X.Terrick..X,” later identified as TERRICK WASHINGTON, engaged in a series of text communications.  Among other things, the Reporter told WASHINGTON she was 13 years old and WASHINGTON told the Reporter that he was 44 years old.  During the communications, WASHINGTON described in detail a variety of sexual acts he wanted to perform on the 13-year-old and made arrangements to meet her in Orange County, New York.

On November 28, 2015, WASHINGTON was arrested when he arrived at the Harriman Metro North Station, in Harriman, New York.  Following his arrest, he admitted that he had met a young girl on the internet while using a chat application from his cell phone and that he made arrangements to meet her so that he could have sex with her.  Initially, WASHINGTON said that the girl told him she was 15, but he later admitted that, in fact, the girl said she was 13.  WASHINGTON also said that he had been convicted of a sex offense when he was 18 involving a 5-year-old girl and that, as a result of that conviction, he is required to register as a sex offender.

Mr. Kim praised the efforts of the Federal Bureau of Investigation, the Orange County District Attorney’s Office, the Orange County District Attorney’s Investigators, and the Orange County Sheriff’s Department in connection with this investigation.

The prosecution is being handled by the Office’s White Plains Division.  Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.  

HUNTINGTON, W.Va. – A Detroit man was sentenced to 10 years in federal prison today for a drug crime, announced United States Attorney Carol Casto. James Otis Daniels, 43, previously pleaded guilty to possession with intent to distribute heroin.

On March 10, 2016, the Huntington FBI Drug Task Force conducted a search at 1830 10th Avenue in Huntington, where Daniels was living with his codefendant, Thomas Nelson. During the search, agents seized a total of over 80 grams of heroin, including over 75 grams located inside a safe in Daniels’ bedroom, along with four digital scales. Agents also seized over $7,300 in cash, over $3,700 of which was located inside the safe in the bedroom. Agents additionally seized a .45 caliber Taurus pistol from Daniels’ bedroom that had previously been reported stolen from a firearms dealer in Barboursville.

Nelson previously pled guilty to a federal gun crime, and was sentenced to five years in federal prison.

The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney R. Gregory McVey is in charge of the prosecution. United States District Judge Robert C. Chambers imposed the sentence.  

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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CHARLESTON, W.Va. – A Charleston man pleaded guilty today to a child pornography crime, announced United States Attorney Carol Casto. Jeffrey Scott Beard, 37, entered his guilty plea to receiving child pornography.

Beard admitted that on October 23, 2016, he received images of prepubescent minors engaged in sex acts. The images were received on Beard’s computer and thumb drives located at his residence in Charleston. The investigation revealed that Beard was using a peer-to-peer file sharing program to download, receive, and distribute images and videos of child pornography. Beard further admitted to possessing over 600 images and videos of minors engaged in sex acts.

Beard faces at least five and up to 20 years in federal prison when he is sentenced on January 11, 2018. Upon his release from prison, he will be required to serve a term of supervised release of at least five years and up to life. He will also be required to register as a sex offender.

The FBI, the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, and the Parkersburg Police Department conducted the investigation. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.

This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

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CHARLESTON, W.Va. – A former nursing home employee who embezzled over $80,000 pleaded guilty today, announced United States Attorney Carol Casto. Veneford Blankenship, 35, of Princeton, entered her guilty plea to mail fraud.

Blankenship worked at a nursing home in Princeton as the Business Office Supervisor where she oversaw the financial operations. Her duties included sending patient invoices, recording deposits in the nursing home’s accounting program, and depositing checks into the nursing home’s operations account. The nursing home also had another bank account, which allowed residents to collect funds that were occasionally spent on dinner, outings, and small events for residents. While the nursing home’s parent company received bank statements for its operations account, the parent company did not receive any statements for the other bank account.

Blankenship admitted that in June 2015, she began secretly diverting residents’ payment checks. Instead of depositing these checks into the operations account, she deposited the checks into the other bank account. She then wrote checks to herself from the other account, forging the signatures of the two individuals with signature authority. She hid her crime by writing false memos on the checks and indicating that the withdrawals were for legitimate nursing home purposes, when in reality she took the money for herself. She also falsely updated the nursing home’s accounting program to indicate that the residents paid invoices and that the nursing home received funds that she had stolen.

Blankenship faces up to 20 years in federal prison when she is sentenced on January 23, 2018. As part of her plea agreement, Blankenship agreed to pay restitution in the amount of $82,926.15.

The FBI and the Postal Inspection Service conducted the investigation. Assistant United States Attorney Meredith George Thomas is in charge of the prosecution. The plea hearing was held before Senior United States District Judge David A. Faber.

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PITTSBURGH – Thomas G. Buckner, 66, of Gibsonia, Pa., and his brother, John. P. Buckner of Lyndora, Pa., have been sentenced in federal court to 30 months incarceration and a $500,000 fine, and 24 months incarceration and a $300,000 fine, respectively, on charges of major fraud against the U.S. Department of Defense and income tax evasion violations, United States Attorney Soo C. Song announced today.

According to the information presented to the court, the Buckner brothers were 50/50 owners of Ibis Tek, LLC. Ibis Tek’s main office was located at 912 Pittsburgh Street, in Butler, Pennsylvania, and it had an office at Ibis Tek Victory Road facility, 220 South Noah Drive, in Saxonburg, Pennsylvania. Ibis Tek manufactured both military and commercial products but specialized in the development of transparent armor and accessory products for tactical and military combat vehicles. Ibis Tek itself was not charged with any violations.

TACOM, located in Warren, Michigan, was responsible for letting and overseeing contracts on behalf of the U.S. Department of Defense, including contracts concerning High Mobility Multipurpose Wheeled Vehicle (Humvees). Ibis Tek had a subcontract to produce Vehicle Emergency Escape Window (VEE Window) Kits for Humvees. The Buckners inflated Ibis Tek’s costs to manufacture the VEE Window kits by creating Alloy America, LLC, (Alloy) a company that was co-located at Ibis Tek that the Buckners controlled, by using Alloy to purchase the frames in China for $20 per frame, and by using false invoices from Alloy to make it appear that Ibis Tek paid $70 per frame. In addition, the Buckners sold scrap aluminum collected in the manufacturing process but failed to credit that money to TACOM. The losses to TACOM were $6,085,709.

The income tax evasion charges against the Buckner brothers arose from not reporting the cash from sales of scrap aluminum, and for taking unallowable business deductions described below. Thomas Buckner repaid the I.R.S. more than $940,000 in restitution, penalties and interest; John Buckner repaid more than $980,000 in restitution, penalties and interest.

The contract fraud violations described above formed the basis for False Claims Act charges against the Buckner brothers brought by the Affirmative Civil Enforcement (ACE) Unit of the U.S. Attorney’s Office. Attorneys on both sides agreed on a civil settlement of $12,171,580.00. On Friday, October 6, 2017, the Buckner brothers made the final payment to the Department of the Treasury on their civil settlement.

Acting U.S. Attorney Song said, “The imposition of years of imprisonment, coupled with more than $2.7 million in restitution and fines, justly resolves the multi-year investigation into the $6 million fraudulent scheme of these defendants against the United States.”

There were three related guilty pleas entered in this investigation and each of these defendants is awaiting sentencing.

Harry H. Kramer, 52, of Wexford, Pennsylvania, pleaded guilty to one count of fraud for his role as CFO of Ibis Tek in the above described scheme against TACOM. Counts Two and Three charged him with filing false returns for Ibis Tek for 2009 and 2010.

David S. Buckner, of Warren, Michigan, (no relation to Thomas or John Buckner) pleaded guilty to a one-count Information charging him with impeding the IRS by acting as a financial intermediary who received and then paid out money from Ibis Tek, LLC to Anthony Shaw, for the purpose of concealing that the monies were income of Shaw.

Anthony A. Shaw, 55, of Rochester Hills, Michigan, pleaded guilty to a five-count Information. Shaw, formerly a civilian employee at TACOM, was a Deputy Project Manager responsible for directing development of and managing government contracts for combat vehicle systems such as Humvees. Shaw was charged in Counts One and Two with demanding and receiving a total of $1,055,500 of illegal gratuities paid by checks, cash and wire transfers by Thomas Buckner to and through David Buckner’s company, D & B Cycle Parts and Accessories, for Shaw’s benefit. Counts Three and Four charged Shaw with income tax evasion for 2009 and 2010 for not reporting the illegal gratuities. In Count Five Shaw was charged with making false statements when he denied that he had socialized with Thomas Buckner and John Buckner, and denied that he had traveled in a car, boat and an airplane owned by Thomas Buckner or John Buckner.

These cases were investigated by the Special Agents of the Department of Defense, Defense Criminal Investigative Service, the Internal Revenue Service, Criminal Investigation, and the U.S. Army Criminal Investigation Division.

"IRS-Criminal Investigation provides financial investigation expertise in our work with our law enforcement partners," said IRS Acting Special Agent in Charge Ed Wirth. "Pooling the skills of each agency makes a formidable team as we investigate allegations of wrong-doing. Today's sentences demonstrate our collective efforts to enforce the law and ensure public trust."

Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.

Acting United States Attorney Soo C. Song commended the Special Agents of the Department of Defense, Defense Criminal Investigative Service, the Internal Revenue Service, Criminal Investigation, and the U.S. Army Criminal Investigation Division for the investigation leading to the successful prosecution of these defendants.

HUNTINGTON, W.Va. – Two defendants who pleaded guilty earlier this year to federal drug crimes were sentenced today in Huntington, announced United States Attorney Carol Casto. Bradley William McCutchen, 36, of Detroit, was sentenced to five years in federal prison after previously pleading guilty to possession with intent to distribute 100 grams or more of heroin. In a separate prosecution, Judy Kay Smith, 59, of Huntington, was sentenced to a year and three months in federal prison and ordered to pay a $10,000 fine after previously pleading guilty to distributing heroin.

On March 28, 2015, agents with the Drug Enforcement Administration Task Force executed a search warrant at “The Sandwich Joint,” a restaurant located at 417 12th Street in Huntington. Agents had previously purchased heroin at the restaurant on several occasions. During the search, agents located and seized over 275 grams of heroin from a safe located on the second floor of the restaurant. Agents also seized various items of drug paraphernalia during the search, including packaging material, a digital scale, and multiple bottles of inositol powder, which is commonly used as a cutting agent in the preparation of heroin for distribution. McCutchen admitted that he used the restaurant to store heroin that he supplied to other individuals and distributed himself. McCutchen further admitted that between August 2014 and March 2015, he supplied the owner of the restaurant with heroin that he transported to Huntington from Detroit. 

In a separate prosecution, deputies with the Cabell County Sheriff’s Department utilized a confidential informant to make a controlled purchase of heroin from Smith on January 5, 2017. Smith agreed to meet the informant in a parking lot at 4341 U.S. Route 60 in Huntington to complete the drug deal. After the informant and Smith arrived at that location, the informant entered Smith’s vehicle, where she sold the informant approximately 10 grams of heroin in exchange for $1,200 in cash. Smith also admitted that she distributed 20 grams of heroin to the informant on January 9, 2017. 

On January 23, 2017, Smith agreed to distribute 20 grams of heroin to an undercover agent with the Huntington FBI Drug Task Force. Prior to that drug deal, a trooper with the West Virginia State Police conducted a traffic stop of Smith’s vehicle. Smith was arrested and found with approximately 22 grams of heroin. Agents also executed a search warrant at Smith’s residence and seized additional heroin and two firearms. As part of her plea, Smith agreed to forfeit a vehicle that was used to facilitate the heroin trafficking.

The Drug Enforcement Administration Task Force conducted the McCutchen investigation. The Huntington FBI Drug Task Force, the Cabell County Sheriff’s Department, and the West Virginia State Police conducted the Smith investigation. Assistant United States Attorney Joseph F. Adams handled the prosecutions. United States District Judge Robert C. Chambers imposed the sentences.

These prosecutions are 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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ALBANY, NEW YORK – Naisha Wiley, 35, of Schenectady, New York, was sentenced today to a three-year term of probation for stealing $10,000 in money orders from the United States Postal Service (USPS).

The announcement was made by Acting United States Attorney Grant C. Jaquith, Eileen Neff, Special Agent in Charge of the Northeast Area for the United States Postal Service, Office of the Inspector General, and Inspector in Charge Shelly A. Binkowski, United States Postal Inspection Service, Boston Division.

In pleading guilty, Wiley admitted that while working part-time as a retail clerk in Post Offices in Montgomery County in 2016 and 2017, she stole U.S. Postal Service money orders totaling $10,000.  She also admitted to stealing gift cards from the mail.

Senior United States Judge Thomas J. McAvoy also ordered Wiley to pay $10,170.00 in restitution to her victims, and complete 50 hours of community service. 

This case was investigated by the United States Postal Service, Office of the Inspector General, and the United States Postal Inspection Service, and was prosecuted by Assistant U.S. Attorney Michael Barnett.