Cape Girardeau, MO – Bobby David Lowrey pled guilty to multiple charges involving federal crop insurance fraud, theft of government property and wire fraud.

According to court documents, Bobby David Lowrey owned and operated farms and related businesses in Parma, New Madrid County, Missouri, including Bobby David Lowrey Farms, Lowrey and Lowrey, Inc. of Parma, Missouri, John Radin Farms and Kathy Ellsworth Farms.

Bobby David Lowrey placed farms in other people’s names in order to obtain Direct and Counter-cyclical Payment Program proceeds that he was not eligible to receive under the federal government’s crop insurance program.  The investigation disclosed that John Radin, the alleged operator of Radin Farms, was employed by Bobby David Lowrey and not actively engaged in farming and did not have any financial interest in the farming operations. Lowery made false statements to the United States Department of Agriculture pertaining to the Federal Crop Insurance Corporation and Direct and Counter-cyclical Payment Program. 

From 2007 to 2012, Bobby David Lowrey obtained $240,367 in Direct and Counter-cyclical Payments in the name of John Radin Farms.  Additionally, $207,729 worth of Multiple Peril Crop Insurance Indemnities, premium subsidies and administrative subsidies were paid on behalf of John Radin Farms between 2008 and 2012. 

The investigation also disclosed that between 2006 and 2011, Bobby David Lowrey transmitted by wire “Extended Work Search Waivers” to the Missouri Division of Employment Security and reported that his employees were on a temporary layoff when in reality they were still working and being paid.  The transmissions made to the Missouri Division of Employment Security resulted in more than $60,000 worth of unemployment Insurance benefits being paid to employees that they were not eligible to receive.

Bobby David Lowrey, Parma, MO, pled guilty to two felony counts of making false statements regarding crop insurance benefits, one felony count of theft of government property and one felony count of wire fraud before United States District Judge Stephen N. Limbaugh, Jr., in Cape Girardeau. Sentencing has been set for August 16, 2016.

These charges carry penalties ranging from 5 to 30 years in prison and or fines up to $1 million.  In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case was investigated by the United States Department of Agriculture-Office of Inspector General-Investigations, Missouri State Highway Patrol-Rural Crimes Investigative Unit and United States Department of Labor-Office of Inspector General-Investigations. Assistant United States Attorney Anthony L. Franks is handling the case for the U.S. Attorney’s Office.

BOISE – Gregory Obendorf, 60, of Parma, Idaho, was found guilty yesterday by a federal jury sitting in Boise of conspiracy to bait migratory birds and placing bait for migratory birds, both in violation of the Migratory Bird Treaty Act, U.S. Attorney Wendy J. Olson announced.  Obendorf was indicted on November 10, 2015.

The jury found that Obendorf conspired with other persons from November 2007 to January 2014, to place bait for migratory birds, specifically ducks, for the purpose of allowing others to hunt over the bait on his farm located on the Boise River in Parma, Idaho.  The jury also convicted Obendorf of directing the placement of bait for duck hunting in November 2013.  The jury heard evidence over the seven day trial that at the beginning of duck hunting season each year of the conspiracy, the defendant instructed his combine operators to partially combine his corn field to intentionally discharge corn kernels onto the field.  Agents from the U.S. Fish and Wildlife Service flew over the defendant’s property in November of 2013, and observed piles of corn near a duck blind from the air.  Agents and officers from the Idaho Department of Fish and Game then entered Obendorf’s corn field and discovered that the entire corn field was baited.  After baiting the field with corn, Obendorf would flood the corn field and allow hunters to shoot ducks over the baited field.  The jury also heard evidence that Obendorf instructed another individual to use a tractor to knock down standing corn in the field at night before his guests would hunt the field the following day.  Obendorf boasted in a recorded conversation with Idaho Fish and Game Officers that he had over 200,000 ducks in the baited field during the 2013 hunting season.  Several hunters who had been invited by Obendorf testified at trial that they hunted the corn field during the course of the conspiracy and that they were able to take their limits of ducks in under an hour.

“We take our mission to support the Fish and Wildlife Service very seriously, especially when violations involve the unlawful baiting of thousands of migratory birds over a prolonged period of time,” said Olson.  “Duck hunting is a time honored tradition for hunters in Idaho, and the defendant has undermined the proud tradition of fair chase for all hunters.”

“Migratory birds are a trust responsibility of the U.S. Fish and Wildlife Service,” said U.S. Fish and Wildlife Service Deputy Chief Edward Grace.  “Because of this fiduciary responsibility, we will remain vigilant in investigating individuals who illegally bait migratory birds to give hunters an unfair advantage.”  Grace stated that the U.S. Fish and Wildlife Service is thankful to the U.S. Attorney’s Office and the citizens of Idaho who served on the jury for upholding the laws designed to protect migratory birds.           

The charges of conspiracy to bait migratory birds and placing bait for migratory game birds are each punishable by not more than one year in prison, a maximum fine of $100,000, and not more than one year of supervised release or up to five years of probation.  Obendorf’s sentencing is scheduled for August 2, 2016.

The case was investigated by the U.S. Fish and Wildlife Service and the Idaho Department of Fish and Game.

Greenbelt, Maryland - Two brothers were sentenced to prison today for filing 46 fraudulent tax returns seeking refunds of over $224 million. U.S. District Judge Paul W. Grimm sentenced Sean Aude Gallman, age 39, of Upper Marlboro, Maryland to 11 years in prison, and Eric Maurice Gallman, age 42, of Huntersville, North Carolina, to four years in prison, both followed by three years of supervised release.  The Gallmans previously pleaded guilty to conspiring to commit mail and wire fraud, mail fraud, and conspiring to commit money laundering.  Sean Gallman also pleaded guilty to money laundering and aggravated identity theft.

Judge Grimm also ordered Sean and Eric Gallman to pay restitution to the IRS of $16,512,492; and forfeit the amount of the refunds paid by the IRS, including $11,529,954 seized from numerous bank accounts; foreign currency and gold and silver coins seized from a residence in Upper Marlboro; nine residential properties located in Upper Marlboro and Laurel, Maryland, North Carolina and South Carolina; and two Mercedes-Benz vehicles and a Hyundai vehicle.           

The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General Caroline D. Ciraolo of the Tax Division of the Department of Justice; and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

“These two criminals filed bogus tax returns claiming ‘refunds’ that were not owed, and stole over $16 million from the IRS,” said U.S. Attorney Rod J. Rosenstein. “Federal agents and prosecutors have a duty to pursue perpetrators of such fraud schemes and try to recover money stolen from the United States Treasury.”

“The Gallman brothers engaged in a willful and deliberate scheme to steal from the U.S. Treasury and in turn, U.S. taxpayers,” said Acting Assistant Attorney General Ciraolo. “The Department will continue to aggressively investigate and prosecute individuals and entities engaged in this criminal conduct, and will seek substantial prison terms, fines and full restitution to hold defendants accountable and send a strong message to potential offenders.”

"Using the U.S. Treasury as a personal piggy bank to obtain millions of dollars in fraudulent refunds, the Gallman’s not only showed their blatant disregard of the law, but also for the American taxpayer," said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office.  “Today’s sentencing’s emphasize that such greed based criminal behavior comes with a cost.”

According to court documents and evidence presented at the sentencing hearing, Sean and Eric Gallman established trusts and business entities, and used mailboxes at numerous private commercial postal carrier stores in Maryland and North Carolina as the addresses for the trusts and business entities. The defendants, acting as trustees and agents, mailed fraudulent tax returns to the IRS in the names of the trusts and businesses requesting refunds.

For example, in January 2013, Sean Gallman mailed to the IRS a fraudulent 2012 tax return in the name of the Gallman Charitable Trust, requesting a refund of $8,218,930.  Also around this time, the defendants mailed to the IRS a fraudulent 2012 tax return in the name of LEA Group Holdings Trust, requesting a refund of $8,293,562. The defendants knew that the trusts were not entitled to the tax refunds.  After receiving refund checks in these amounts, on February 15 and March 11, 2013, the defendants deposited the two refunds in bank accounts they controlled. To hide their receipt of these refunds, the defendants used cashier’s checks and other financial instruments to transfer a portion of the money to third parties and other bank accounts.

Altogether, the Gallman brothers filed approximately 46 fraudulent tax returns seeking refunds totaling $224,676,998, for which the IRS paid two refunds totaling $16,512,492.

United States Attorney Rosenstein and Acting Assistant Attorney General Ciraolo praised IRS-Criminal Investigation for its work in the investigation and thanked Assistant United States Attorney Thomas P. Windom and Trial Attorney Erin Pulice of the Department of Justice Tax Division, who prosecuted the case.

BOSTON – The former chief of the Lee Police Department was sentenced today in U.S. District Court in Springfield for extorting a $4,000 payment from a couple facing prostitution charges in Southern Berkshire District Court. 

“Mr. Buffis abused his position of authority by extorting cash for his own benefit and greed,” said United States Attorney Carmen M. Ortiz.  “This degrades the respect and trust that communities place in their law enforcement officials, and is contrary to the values promoted by those who uphold the law.”    

“Mr. Buffis turned his back on his law enforcement profession and his community, choosing instead to break the laws he was sworn to uphold,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division.  “The FBI hopes this sentence sends a clear message—corruption at all levels of government will not be tolerated.”

Joseph Buffis, 57, of Pittsfield, Mass., was sentenced by U.S. District Court Judge Mark G. Mastroianni to 27 months in prison, two years of supervised release and forfeiture of $4,000.  He was convicted following a three-week trial in June 2015 of extortion under color of official right. 

As the Lee Police Chief, Buffis solicited and controlled public donations to the Edward J. Laliberte Toy Fund, a children’s holiday toy fund.  On Feb. 21, 2012, Buffis extorted a $4,000 “donation” check to the toy fund from two individuals who were facing prostitution-related charges.  Buffis deposited the $4,000 check into the toy fund’s bank account and then quickly withdrew $3,990 of these funds in three checks that he wrote to “cash.”  Buffis did not cash these checks, but instead deposited them into a personal bank account, and then used the diverted funds to pay various personal expenses.  When law enforcement commenced an investigation into this activity, Buffis repeatedly lied about the funds.  

At today’s sentencing, Judge Mastroianni stated that, “Mr. Buffis used his position as the highest ranking police officer to essentially auction off his own concept of justice.”  He went on to say, “To impugn the integrity of a department like you did is a monumental, terrible, unfair thing, a selfish thing.” 

U.S. Attorney Ortiz; SAC Shaw; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today.  The case was prosecuted by Assistant U.S. Attorneys Steven H. Breslow and Deepika Shukla of Ortiz’s Springfield Branch Office. 

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man pleaded guilty in federal court today to charges related to a scheme to sell more than $5.8 million worth of spent cooking oil – stolen from restaurants across five states – to a recycling facility in Oklahoma.

Jeffery Lynn Fleming, 60, of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush to transporting stolen goods across state lines, money laundering and filing a false tax return.

Jeffery Fleming, who operated Fleming Recycling, LLC, in Carterville, Mo., sold approximately $5,831,567 worth of spent cooking oil that had been stolen from restaurants to Brooks Grease Service, a grease recycling business in Tulsa, Okla., between Nov. 1, 2010, and Sept. 30, 2011.

Spent cooking oil is the by-product of cooking oil that restaurants use for frying food. Restaurants had on-site collection tanks in which their spent cooking oil was stored. Many restaurants established contracts with various companies for the collection and removal of spent cooking oil. Brooks Grease Service sent a tanker truck to Fleming Recycling on an almost-daily basis, according to court documents. Each tanker truck held approximately 45,000 pounds of stolen spent cooking oil that was valued at approximately $20,000.

Jeffery Fleming was repeatedly told by undercover agents that the spent cooking oil he was purchasing, storing at his storage facility and selling to Brooks Grease Service was stolen. Undercover agents also negotiated a deal with Jeffery Fleming for the use of one of his trucks. Undercover agents told him they were using his truck to steal spent cooking oil; they charged him one-fourth the going price for the entire load of stolen spent cooking oil hauled by his employees in his collection truck.

Jeffery Fleming also admitted that he significantly underreported his gross receipts on his 2007 federal income tax return.

Fleming’s brother and co-defendant, Brian Dale Fleming, 49, of Mountain Grove, Mo., pleaded guilty on Nov. 19, 2015, to his role in the conspiracy to transport stolen property across state lines and to money laundering. Brian Fleming has also pleaded guilty to being a felon in possession of a firearm and ammunition. Brian Fleming admitted that he used his business, Tri-State Grease, to transport stolen spent cooking oil to Fleming Recycling. Brian Fleming admitted that he trained, encouraged and aided others to steal spent cooking oil from businesses in order to sell it to Fleming Recycling.

Under the terms of their plea agreements, Jeffery and Brian Fleming must forfeit to the government $595,429 that was seized by law enforcement officers, which was derived from the sale of stolen spent cooking oil.

Co-defendants Virgil Orin Bird, Jr., 53, and Neal Sawyer Robbins, 29, both of Joplin, were employees of Fleming Recycling. They each pleaded guilty to money laundering related to a payment for spent cooking oil they believed had been stolen and transported across state lines.

This case is being prosecuted by Assistant U.S. Attorneys Abram McGull, II and Patrick Carney. It was investigated by IRS-Criminal Investigation, the Missouri State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

CHARLESTON, W.Va. – A Lincoln County man was sentenced to 11 years and seven months in federal prison for trafficking pain pills, announced Acting United States Attorney Carol Casto. William Harrison Meade, 46, of Branchland, previously pleaded guilty in September 2015 to conspiring to distribute oxycodone.

Meade admitted that in 2010 and 2011, he conspired with individuals in Florida and Lincoln County to distribute oxycodone. Meade also admitted that he laundered the proceeds of the drug sales through a West Virginia bank account for withdrawal in Florida in an effort to conceal the source of the cash and the pills.

Lester Taylor, of Daytona Beach, Florida, was one of Meade’s associates in the drug operation. Taylor acquired oxycodone pills in Florida and used various methods to transport the drugs to West Virginia for distribution by Meade. Taylor sent 15 priority overnight packages containing oxycodone pills to Meade at his home in Branchland. Law enforcement intercepted the last package on January 8, 2011, which contained 1,000 oxycodone pills. After Meade sold the oxycodone pills, he deposited the drug proceeds into bank accounts in Barboursville and Huntington. Following the deposits in West Virginia banks, Taylor and others withdrew the money in Florida. Meade deposited $149,500 in drug proceeds into Taylor’s Fifth Third Bank account at the Huntington branch.

Taylor admitted to obtaining prescriptions for oxycodone and hydromorphone from physicians in Florida and then having the prescriptions filled at pharmacies in West Virginia. The pharmacy primarily used for this unlawful activity, A+ Care Pharmacy, formerly located in Barboursville, has since been prosecuted in federal court by the U.S. Attorney’s Office for the Southern District of West Virginia, and is no longer in business.

In November 2015, Taylor was sentenced to 10 years in federal prison and a $10,000 fine for his role in the pain pill distribution and money laundering conspiracy.

The West Virginia State Police, the Internal Revenue Service’s Criminal Investigation division, and the Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Monica D. Coleman handled the prosecution. United States District Judge Thomas E. Johnston imposed Meade’s sentence.

These cases 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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ATLANTA – Former Clayton County Police Department Officer Grant Kidd, Jr., has been arraigned after being charged for soliciting a bribe to dismiss pending criminal charges against two Clayton County defendants. 

“A law enforcement officer who is allegedly looking to line his own pockets by obstructing justice undermines the dedication and hard work of his fellow officers as well as the community’s trust and respect for its police officers,” said U. S. Attorney John Horn. 

“When a law enforcement officer strays from his sworn oath, as is alleged in our investigation and in the resulting federal grand jury indictment, it is extremely disheartening to us and others who work so hard within the criminal justice system and do so with integrity and commitment.  Due to the vast potential harm that these cases can cause, the FBI will continue to dedicate significant resources toward investigating such matters involving allegations of public corruption involving police officers,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

According to U. S. Attorney Horn, the indictment, and other information presented in court: Kidd was employed by the Clayton County Police Department (CCPD) as a patrol officer.  In July 2015, Kidd allegedly used a friend to contact two Clayton County criminal defendants who were charged with theft and forgery.  Kidd arranged to meet with the two defendants in a parking lot of a shopping center shortly after they were released from the Clayton County Jail.  During a recorded conversation, Kidd allegedly assured the defendants that their charges would be “administratively dismissed” if they paid him $1,500.  Kidd even offered a money back guarantee to the defendants if their criminal charges were not dismissed.  After these allegations surfaced, Kidd resigned from the CCPD.

Grant Kidd, Jr., 52, of Hampton, Georgia, was indicted by a federal grand jury May 11, 2016.  He was arraigned before United States Magistrate Judge Russell G. Vineyard.

Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the Federal Bureau of Investigation.  Assistant United States Attorney Brent Alan Gray is prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

LOUISVILLE, Ky. – A Bullitt County, Kentucky, man was sentenced today to 360 months in prison, followed by a life-time of supervised release, by Senior United States District Judge Thomas B. Russell, for the production of child pornography, announced United States Attorney John E. Kuhn, Jr.

“Thirty years is a just sentence for Michael Mudd, who exploited two young children to manufacture child pornography," stated U.S. Attorney Kuhn.  “This successful prosecution was part of Project Safe Childhood, a Department of Justice initiative launched ten years ago this month to combat the growing epidemic of child sexual exploitation and abuse.  We will continue to work with our law enforcement partners to rescue child victims and pursue criminals like Mr. Mudd who prey on them."

Michael Mudd, 47, previously admitted in court that he had photographed and video recorded two male children.  He created the images inside his residence as well as outside at a small lake near the trailer park where he lived.   At least one of the children was identified and a staff member with Family and Children’s Place in Louisville, Kentucky, conducted a forensic interview with the 12-year-old boy. During the interview, the child described multiple occasions during which Mudd photographed and video recorded him engaging in sexually explicit conduct.  According to the child, the recording/photographing took place on multiple occasions dating back to the fall of 2013 and continuing to May 2014.  The computer forensic examination of the items seized from Mudd’s home revealed the existence of the videos / photographs described by the boy.

Mudd was arrested on August 25, 2014, on a criminal complaint.  A federal grand jury indicted Mudd on September 18, 2014.  Mudd pleaded guilty to two separate counts of producing child pornography on June 17, 2015.

According to the record of this case, law enforcement officials executed a federal search warrant on Mudd’s residence on August 7, 2014.  Mudd was at home during execution of the warrant.  Law enforcement officials seized a number of items, including computers, cellular telephones and other digital devices.  The items were submitted for forensic examination.

While law enforcement officials were on the scene of the search, neighbors approached and expressed concern about Mudd’s conduct with young boys in the neighborhood.  Within 24 hours of executing the warrant, an adult female made contact with law enforcement.  She reported that her 12-year-old son told her that Mudd had recorded her son engaging in sexually explicit conduct.

Assistant United States Attorney Jo E. Lawless prosecuted the case.  The United States Postal Inspection Service, with assistance from the Bullitt County Sheriff’s Office, conducted the investigation.

***

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc  For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

Montgomery, Alabama– On Tuesday, May 17, 2016, a federal jury in Montgomery convicted Kennon W. Whaley, 51, from Auburn, Alabama on two counts of bankruptcy fraud for concealing assets of his business from the Bankruptcy Court and his creditors, announced George Beck Jr., U.S. Attorney for the Middle District of Alabama.

Whaley had been the president and CEO of Southeastern Stud & Components from the time the company was created in 1999. Southeastern Stud was located in Montgomery and was in the business of manufacturing light steel framing components to be used in commercial and industrial construction. At its peak in 2005, Southeastern Stud grossed over $34,000,000, had 125 full-time employees and distributed steel to customers throughout the United States.

By 2009, the company’s revenue had decreased substantially, so Whaley, on behalf of Southeastern Stud, filed for Chapter 11 bankruptcy protection in March of that year and the company remained in bankruptcy until October of 2011. Because Southeastern Stud was allowed to continue its operation during the bankruptcy, Whaley was required under the law to disclose all assets and property of the company to the Bankruptcy Court each month.

However, the evidence at trial showed that despite this requirement Whaley diverted the proceeds from a $260,000 insurance payment to the company in 2010 to pay off a personal gambling debt. The evidence showed that in January of 2010 Mr. Whaley traveled to the Wynn Las Vegas Casino where he incurred a $100,000 gambling debt during a trip of just four days. The evidence also showed that Wynn Las Vegas began to put pressure on Whaley to pay the debt beginning in February of 2010. Casino records from Wynn Las Vegas, and the bank records of the account where the insurance proceeds were deposited, showed that Whaley used the company’s insurance money pay off his gambling debt and to pay himself over $30,000 in cash. None of these transactions were ever disclosed by Whaley to the Bankruptcy Court as required.

The casino records also show that once his debt was paid off in October of 2010, Whaley made a return trip to Wynn Las Vegas during which he spent over $20,000 at the casino and sent a limousine to pick up his wife at the airport. At that time, Southeastern Stud was still in bankruptcy and approximately 70% of its employees had lost their jobs.

“Our bankruptcy laws are designed to provide financial protection for both creditors and debtors alike,” stated U.S. Attorney Beck. “When debtors attempt to illegally thwart the very laws that provide them protection and take advantage of this fraud in bankruptcy court, they will be punished.”

Whaley faces a maximum sentence of 5 years in prison on each count of Bankruptcy Fraud.

The case was investigated by the FBI after they received a tip from one of Whaley’s former employees. The case was prosecuted by Assistant United States Attorneys Brandon Essig and John Geer.

U.S. Attorney Kenneth A. Polite announced that ERIC DE JESUS MENDOZA-MARTINEZ, age 20, a citizen of Mexico, was sentenced today after previously pleading guilty to a one-count Indictment for violations of the Federal Gun Control Act.

U.S. Attorney Polite praised the work of the Homeland Security Investigations of the U.S. Department of Homeland Security, in investigating this matter.  Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that GROSS WILLIAMS, age 49, and his wife, KATHLEEN WILLIAMS, age 46, both residents of New Orleans, pled guilty today.  GROSS WILLIAMS pled guilty to conspiracy to distribute a kilogram or more of heroin and five kilograms or more of cocaine, as well as illegal possession of a firearm by a convicted felon. KATHLEEN WILLIAMS pled guilty to obstruction of justice for destroying a cellular phone used by GROSS WILLIAMS in his drug dealing activity.

According to court documents, GROSS WILLIAMS was a large-scale narcotics dealer.  He operated a used car business in Arabi that served as a cover and means of laundering his drug proceeds.  Law enforcement officers seized over $425,000 in cash and a .40 caliber semi-automatic pistol from the WILLIAMS’s bedroom during a search, and later discovered another $240,000 in cash in a safe deposit box that KATHLEEN had opened in her name.  Through a detailed financial investigation, law enforcement was able to show that GROSS deposited hundreds of thousands of dollars in cash into the bank accounts of his used car business despite selling only a few midrange models each year.  KATHLEEN also admitted that she destroyed her husband’s “dope phone” the day that he was arrested. 

GROSS WILLIAMS faces a minimum term of imprisonment of 20 years to a maximum of life, a fine of up to $20,000,000 and ten years of supervised release following any term of imprisonment.  KATHLEEN WILLIAMS faces a maximum term of imprisonment of twenty years, a fine of up to $25,000, and 3 years of supervised release following any term of imprisonment.  U.S. District Judge Kurt D. Engelhardt set sentencing for August 17, 2016.

U.S. Attorney Polite praised the work of the Drug Enforcement Administration, the Federal Bureau of Investigation, the St. Bernard Parish Sheriff’s Office, the New Orleans Police Department, and Louisiana Probation and Parole, in investigating this matter.  Assistant United States Attorneys David Haller and Hayden Brockett are in charge of the prosecution.

ALBUQUERQUE – Ramiro Trevizo-Granillo, 33, of Deming, N.M., pled guilty today in federal court in Las Cruces, N.M., to narcotics trafficking and conspiracy charges.  Under the terms of his plea agreement, Trevizo-Granillo will be sentenced to 156 months in federal prison followed by a term of supervised release to be determined by the court.

Trevizo-Granillo was arrested on July 30, 2015, on a criminal complaint charging him with participating in a methamphetamine trafficking conspiracy and conspiracy to tamper with a witness.  The complaint alleged that Trevizo-Granillo provided an individual with 30 grams of methamphetamine on July 4, 2014, with the understanding that the purchaser would be selling the drugs to others.  The complaint further alleged that while Trevizo-Granillo was detained on the aforementioned methamphetamine distribution charge, he engaged in a recorded telephone conversation with another person during which he discussed a scheme to prevent a witness from testifying against him. 

Trevizo-Granillo was subsequently indicted on Oct. 15, 2015, and charged with participating in a methamphetamine distribution conspiracy on July 4, 2014, in Luna County, N.M., and conspiracy to tamper with a witness on July 4, 2015.

During today’s proceedings, Trevizo-Granillo pled guilty to the indictment and admitted that on July 4, 2014, he sold 30 grams of methamphetamine to another person.  Trevizo-Granillo further admitted that on July 5, 2015, he had a conversation with a friend about making a cooperator involved in his case “disappear” so the cooperator would not testify against him. 

Trevizo-Granillo remains in federal custody pending a sentencing hearing which has yet to be scheduled.

This case was investigated by the Deming office of Homeland Security Investigations and the Deming Police Department.  Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.

ALBUQUERQUE – Two residents of Albuquerque, N.M., made their initial appearances today in federal court on a criminal complaint charging them with heroin and methamphetamine trafficking offenses.  Joshua Greene, 18, and Kayleb Reyos, 21, remain in custody pending preliminary hearings and detention hearings scheduled for May 19, 2016.

Greene and Reyos were arrested yesterday as the result of a DEA investigation into heroin and methamphetamine trafficking in northwest Albuquerque.  The complaint alleges that Greene and Reyos sold an aggregate of 36 ounces (2.25 pounds) of heroin and 3 ounces (.18 pounds) of methamphetamine to undercover law enforcement agents during a series of transactions occurring between Feb. 4, 2016 and May 4, 2016.  The two men were arrested when the DEA executed a federal search warrant at their residence in northwest Albuquerque.  During the search, the DEA allegedly seized an additional pound of heroin, bulk amounts of cash, a handgun, and drug paraphernalia.

If convicted of the charges in the criminal complaint, Greene and Reyos each face a statutory mandatory minimum of ten years and a maximum of life in federal prison.  Charges in criminal complaints are merely accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt.

This case was investigated by the Albuquerque office of the DEA.  Assistant U.S. Attorney Kristopher Houghton is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.  The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic which has had a disproportionately devastating impact on New Mexico.  Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities.  Working in partnership with the DEA, Bernalillo County Commissioner Maggie Hart Stebbins, Albuquerque City Councilor Diane Gibson, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico. 

The HOPE Initiative is comprised of five components:  (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning.  HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners.  Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.  Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.

MARTINSBURG, WEST VIRGINIA – A federal jury returned a guilty verdict today convicting Lateef Fisher, 38, of Hagerstown, Maryland, of selling heroin that resulted in the death of another, United States Attorney William J. Ihlenfeld, II, announced.
 
Evidence presented at the two day trial indicated that Fisher, also known as “Apple,” conspired with another individual to sell heroin in June 2014 in Berkeley County, West Virginia. That heroin led to the death of a 27 year-old male victim.
 
As a result of the conviction, Fisher faces a minimum of 20 years in federal prison and up to life.

"Heroin has taken the lives of far too many people," said U.S. Attorney Ihlenfeld.  "We will continue to be aggressive in our pursuit of those who sell heroin, especially when it results in the death of another."
 
Assistant U.S. Attorneys Paul Camilletti and Anna Krasinski prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
 
Chief U.S. District Judge Gina M. Groh presided.

WASHINGTON – Attorney General Loretta E. Lynch announced today the appointments of John W. Huber, U.S. Attorney for the District of Utah, and Peter F. Neronha, U.S. Attorney for the District of Rhode Island, to the Attorney General’s Advisory Committee (AGAC), effective immediately.

“The Attorney General’s Advisory Committee plays a crucial role in shaping the Justice Department’s approach to fighting crime, countering national security threats and securing equal justice under the law and I am pleased to welcome two new members to its ranks,” said Attorney General Lynch.  “U.S. Attorneys John Huber and Peter Neronha have spent their careers tackling some of the most high-profile and difficult challenges we face, from political corruption and terrorism to gun violence and organized crime.  I have come to know them both as outstanding law enforcement officers and devoted public servants and I look forward to drawing upon their insight and expertise in the months to come as we continue our work to create a stronger, safer, and more equal nation for all Americans.” 

U.S. Attorney Huber will fill the seat vacated by former U.S. Attorney for the District of Kansas, Barry Grissom, who resigned on April 15.

U.S. Attorney Neronha will fill the seat vacated by former U.S. Attorney for the Northern District of Ohio, Steven Dettelbach, who resigned on Feb. 5.

U.S. Attorney Huber was nominated by President Barack Obama on Feb. 4, 2015, and confirmed by the U.S. Senate on June 10, 2015, as U.S. Attorney for Utah.  Prior to confirmation as the U.S. Attorney, U.S. Attorney Huber prosecuted a number of high profile federal cases and coordinated task forces that focused on violent crime and counter-terrorism.  He also served as chief of the National Security Section in the U.S. Attorney’s Office before being asked to serve as the Executive Assistant U.S. Attorney, a member of the office’s executive management team.

  Mr. Huber is a veteran public servant who has served as a prosecutor at every trial court level in the State of Utah.  After graduating with honors from the University of Utah, Mr. Huber went on to complete his juris doctor degree at the University of Utah’s S.J. Quinney College of Law.  He began his prosecution career in the Weber County Attorney’s Office, and later served as the Chief Prosecutor for West Valley City before joining the United States Attorney’s Office in 2002.

U.S. Attorney Neronha was nominated by President Barack Obama on July 31, 2009, and confirmed by the U.S. Senate on Sept. 15, 2009, as the U.S. Attorney for the District of Rhode Island.  In 2002, U.S. Attorney Neronha joined the U.S. Attorney’s Office for the District of Rhode Island.  As an Assistant U.S. Attorney, he prosecuted criminal cases involving political corruption, white collar crime, drug and firearm offenses.  When he joined the U.S. Attorney’s Office, he was named coordinator of the District’s Project Safe Neighborhoods, a Department of Justice initiative against gun crimes.  Prior to being named U.S. Attorney, he was Chief of the  District’s Organized Crime Strike Force.  U.S. Attorney Neronha previously served on the AGAC during 2009-2011.

The AGAC was created in 1973 to serve as the voice of the U.S. Attorneys and to advise the attorney general on policy, management and operational issues impacting the offices of the U.S. Attorneys.

BOSTON – Two California men were sentenced on Tuesday, May 17, 2016 in U.S. District Court in Boston for trafficking cocaine from Mexico into the United States.

Armando Meras Chavez, 37, of Visalia, Calif., and Arturo Rodriguez Ornelaz, 39, of Sanger, Calif. were sentenced by U.S. District Court Judge Nathaniel M. Gorton to 15 years in prison and five years of supervised release.  In November 2015, Chavez and Ornelaz pleaded guilty to conspiracy to possess with intent to distribute and to distribution of five kilograms or more of cocaine and conspiracy to commit money laundering.

The charges resulted from a lengthy investigation that began in 2010 into the drug trafficking activities of the Chavez family, many of whom are Mexican nationals based in Washington and California.  Chavez and Ornelaz were the leaders within the organization, which imported kilograms of cocaine into the United States from Mexico, transported the cocaine across the country using tractor trailers, and sold it to a local cocaine distributor based in Dorchester.  During the course of the investigation, law enforcement seized approximately 50 kilograms of drugs and over $1 million in drug proceeds.

United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement.  The case was prosecuted by Assistant U.S. Attorneys Nathaniel R. Mendell and Katherine Ferguson of Ortiz’s Narcotics and Money Laundering Unit.

BOSTON – A Dorchester man was sentenced today in U.S. District Court in Boston in connection with a long-running, cross-country teen sex trafficking operation and ordering a witness against him to be killed.  

Raymond Jeffreys, a/k/a “Skame Dollarz,” a/k/a “Frenchy,” 28, of Dorchester, was sentenced by U.S. District Court Judge Denise J. Casper to 30 years in prison and five years of supervised release.  In January 2016 he pleaded guilty sex trafficking,tampering with a witness by attempting to kill him, and making false statement to a federal agent.

“Raymond Jeffreys devastated the lives of his victims,” said United States Attorney Carmen M. Ortiz.  “He feigned affection, instilled fear and used violence to control these young women.  While no amount of jail time will undo the trauma he inflicted, his sentence demonstrates that those who violate the standards of human decency will face the force of justice.”

“With the identification and rescue of 20 victims in this case, and the lengthy prison sentence for one of those responsible, law enforcement has just dealt a serious blow to those who think they can sell a person in Boston for commercial gain,” said Special Agent in Charge Matthew Etre, of HSI Boston. “HSI and the Boston Police Department refuse to stand idly by, and will continue to aggressively pursue criminals who engage in sexual slavery at the cost of the victim’s lives.”

“This defendant preyed on the most vulnerable young women and girls and exploited them for his own selfish gain,” said Boston Police Commissioner William Evans. “I want to acknowledge the work of the Boston Police Department's Human Trafficking and Homicide Units and great collaboration and cooperation with our Federal law enforcement partners who investigated and prepared to prosecute this case.”

From 2006 to May 2014, Jeffreys, along with co-defendant Corey Norris, and others, trafficked women and minor girls, in Massachusetts, Maine, New Hampshire, Vermont, Rhode Island, Connecticut, Pennsylvania, New Jersey, New York, Maryland, Nevada, Georgia, Florida, and California.  Jeffreys targeted vulnerable girls and women, including those who were poor and homeless, drug addicts, and those who were already working as prostitutes.  Many of the women either had children when they met Jeffreys and became pregnant with his child.  Jeffreys used a variety of techniques to persuade and manipulate the women, including making promises about providing for them and their children, and then only doing so if the women performed acts of prostitution.  Jeffreys used a variety of techniques to control the girls and women, including by threatening the women that he would kill them.  Jeffreys also taught other men how to engage in sex trafficking and worked with other men as “pimp partners” or “p partners” to share resources, such as car rides, hotel rooms, and payment for online advertisements.

During today’s sentencing hearing, Judge Casper stated, “the labels of these crimes do not convey the true harm you have caused.”  After discussing the defendant’s criminal history, Jude Casper said, “I don’t accept that violence has to beget violence.  Particularly where the victims were selected for their vulnerability.  Judge Casper also stated that on other cases, she “struggled mightily” to impose sentences of this magnitude, but today, “I have not struggled so mightily.”    

In January 2016, co-defendant Norris was sentenced to 15 years in prison. 

The charge of tampering with a witness by attempting to kill him or conspiring to do so provides a sentence of no greater than 30 years in prison, five years of supervised release, a fine of $250,000, and restitution.  Each of the charges of sex trafficking by force, fraud or coercion, provides for a mandatory minimum sentence of 15 years in prison and a maximum sentence of a lifetime in prison,  a minimum of five years and a maximum of a lifetime of supervised release, a fine of $250,000, and restitution.  Each of the charges of sex trafficking of a minor provides for a mandatory minimum sentence of 10 years in prison and a maximum of a lifetime in prison, five years of supervised release, a fine of $250,000, and restitution.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Ortiz, HSI SAC Etre and Commissioner Evans, made the announcement today.  The case was investigated by Homeland Security Investigations, the Boston Police Department’s Human Trafficking and Homicide Units, and the Federal Bureau of Investigation. 

The U.S. Attorney’s Office also wishes to recognize and thank Shawn Meehan, Resident Agent in Charge of the Homeland Security Investigations’ Portland, Maine Office; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Aaron Steps, Supervisory Senior Resident Agent in Charge of the FBI Maine Office; the Suffolk County District Attorney’s Office; Cumberland County (Maine) District Attorney’s Office; the United States Attorney’s Office for the District of Maine; the Massachusetts State Police; the Portland (Maine), Old Town (Maine), Braintree, and South Portland (Maine) Police Departments; the Maine Drug Enforcement Agency; and the Cumberland County Sheriff’s Office.  This case was prosecuted by Assistant U.S. Attorneys Amy Harman Burkart and David D’Addio of Ortiz’s Civil Rights Enforcement Team and Special Assistant U.S. Attorney David S. Bradley from the Suffolk County D.A.’s Office. 

Preet Bharara, the United States Attorney for the Southern District of New York, and Shantelle P. Kitchen, Special Agent in Charge of the New York Office of the Internal Revenue Service-Criminal Investigation (“IRS-CI”), announced that DAVID S. YOUNGER, a neurologist with a private medical practice in Manhattan, pled guilty today in Manhattan federal court to one count of tax fraud for falsely classifying personal expenses as business expenses attributable to his medical professional corporation.  In total, in 2007 and 2008, YOUNGER falsely classified over $580,000 in expenses.  YOUNGER pled guilty before U.S. District Judge Jed S. Rakoff.

According to the Information and statements made at today’s plea proceeding:

YOUNGER, a resident of Westchester County, is a board-certified neurologist engaged in private medical practice in Manhattan through the David S. Younger M.D., P.C., professional corporation (the “Younger P.C.”).  In 2007 and 2008, Younger filed both personal tax returns on behalf of himself and his wife, and corporate tax returns on behalf of the Younger P.C.  In 2007, YOUNGER used approximately $250,000 of corporate funds to pay personal expenses, and in 2008, YOUNGER used approximately $335,000 of corporate funds to pay personal expenses.  YOUGNER caused all of these expenses falsely to be recorded as business expenses such as medical supplies, office expenses, and professional fees in the books and records of the Younger P.C.  YOUNGER caused these expenses falsely to be deducted from income on tax returns of the Younger P.C., and YOUNGER also fraudulently omitted these personal expenses as income on his personal tax returns.

Among the personal expenses that YOUNGER falsely categorized as business expenses and deducted on his corporate tax returns in 2007 and 2008 are the following:  approximately $100,000 in fees to a private golf and country club, approximately $53,000 in property taxes for YOUNGER’s residence, a $4,300 placement fee for a nanny/housekeeper, approximately $17,000 for the construction of an electric gate at YOUNGER’s residence, $345 for a Mickey Mantle baseball card, approximately $26,000 for the restoration of a piano that was picked up from and delivered to YOUNGER’s residence, approximately $37,000 for a vendor to perform construction work at YOUNGER’s residence, approximately $18,000 for furniture delivered to YOUNGER’s residence, and at least approximately $20,000 of airfare for members of YOUNGER’s family.

*                      *                     *

YOUNGER, 61, of Scarsdale, New York, faces a maximum sentence of three years in prison.  As part of his plea agreement, YOUNGER is also required to pay restitution to the IRS.  The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  YOUNGER is scheduled to be sentenced by Judge Rakoff on September 19, 2016, at 4:00 p.m.

Mr. Bharara praised the work of the Internal Revenue Service, Criminal Investigation.

This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit.  Assistant United States Attorney Richard Cooper is in charge of the prosecution.

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BOSTON – Kenneth Finch, Jr., 29, of Springfield, was indicted by a federal grand jury in Springfield on one count of being a convicted felon in possession of a firearm.

According to court documents, in June 2015, law enforcement received information that Finch was a source for firearms in the Springfield area.  On June 3, 2015, Finch sold a Ruger Model P-90 .45 caliber pistol and six rounds of .45 caliber ammunition to two undercover officers in exchange for $1,200.  Finch had prior felony convictions in North Carolina for possession of a firearm by a convicted felon, breaking and entering, attempted burglary in the second degree, and possession with intent to distribute marijuana.

The charge provides a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Carmen M. Ortiz and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorney Katharine A. Wagner of Ortiz’s Springfield Branch Office.

The details contained in the indictment are allegations.  The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.