United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, female convicted of Assault Resulting in Serious Bodily Injury was sentenced on November 27, 2017, by U.S. District Judge Roberto A. Lange.

Brianna High Elk, age 24, was sentenced to 24 months in custody, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.00.

High Elk was indicted by a federal grand jury on June14, 2017.  She pled guilty on September 11, 2017.

The conviction stemmed from an incident on April 16, 2017, when High Elk assaulted another female.  The victim suffered a fracture through the left lamina papyracea (part of the eye socket), a fractured nasal bone, and a small minimally displaced fracture through the left inferior orbital rim.

This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Dewey County Sheriff’s Office. Assistant U.S. Attorney Jay Miller prosecuted the case.

High Elk was immediately turned over to the custody of the U.S. Marshals Service.

United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Assault of an Intimate Partner and Child Abuse.

Tristan Lee Kills The Enemy, age 21, was indicted on November 14, 2017.  He appeared before U.S. Magistrate Judge Mark A. Moreno on December 6, 2017, and pled not guilty to the Indictment.

The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.  Restitution may also be ordered.

The Indictment alleges that on October 28, 2016, Kills The Enemy assaulted an intimate partner by strangulation.   The Indictment further alleges that Kills The Enemy abused, exposed, tortured, tormented, and cruelly punished a child who had not attained the age of 18, on that date.

The charges are merely an accusation and Kills The Enemy is presumed innocent until and unless proven guilty. 

The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services.  Assistant U.S. Attorney Daniel C. Nelson is prosecuting the case.   

Kills The Enemy was remanded to the custody of the U.S. Marshals Service pending trial.  A trial date has not been set.

United States Attorney Randolph J. Seiler announced that a Wounded Knee, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.

Virgil Left Hand, Sr., age 50, was indicted on October 24, 2017.  Left Hand appeared before U.S. Magistrate Judge Daneta Wollmann on December 1, 2017, and pleaded not guilty to the Indictment.

The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, $100 to the Federal Crime Victims Fund, and a $5,000 assessment, unless the sentencing court finds the defendant to be indigent.  Restitution may also be ordered.

The charges relate to Left Hand using a golf club to assault the male victim at Wounded Knee on September 23, 2017.

The charges are merely accusations and Left Hand is presumed innocent until and unless proven guilty.

The investigation is being conducted by the Federal Bureau of Investigation.  Assistant U.S. Attorney Megan Poppen is prosecuting the case.

Left Hand was remanded to the custody of the U.S. Marshals Service pending trial.  A trial date has been set for February 6, 2018.

Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Kyle Adam Kirby (37, Live Oak) guilty of producing, attempting to produce, possessing, and accessing child pornography.  He faces a minimum mandatory penalty of 15 years, up to 120 years, in federal prison and a potential life term of supervised release. Kirby was arrested on October 28, 2015, and has remained in custody since that time. A sentencing hearing has not yet been set. 

According to testimony and evidence presented at trial, on October 22, 2015, FBI agents and other law enforcement officers executed a federal search warrant at Kirby’s residence as a result of an online child exploitation investigation. At that time, Kirby was a police sergeant with the Live Oak Police Department (LOPD). That same morning, the LOPD police chief authorized the agents to inspect and search the computer located inside Kirby’s patrol car. A forensic examination of this computer revealed that it contained images depicting young children engaged in sexually explicit conduct. Kirby had used the patrol car computer to download, access, and possess child pornography from as early as December 24, 2014.

A subsequent search of an LOPD desktop computer used by Kirby revealed images depicting nude and partially undressed children in at least three different bathrooms. Kirby had used one or more concealed cameras to surreptitiously film the unsuspecting minors. He then transferred these images to the LOPD desktop computer, and later unsuccessfully attempted to delete them. Agents were able to locate folders on the computer named for several of his victims.

Chief Alton “Buddy” Williams from the Live Oak Police Department stated, “I have been in law enforcement for 30 years, and this has been the most difficult situation I have faced. A trusted friend, officer and protector of the public betrayed all facets of the job he swore to do. I realize that mistakes happen, but this was no mistake it was a choice, a choice that has impacted not only his agency, but his trusted friends, family, and community to include all brothers and sisters of the badge. I am appreciative of the F.B.I, the U.S Attorney’s Office and all others involved. Justice did prevail.”

"This case is another example of the relentless efforts of the FBI and our law enforcement partners to identify those who prey on our children," said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division. "It is made even more egregious having been committed by someone who swore to uphold the law and protect the community. Let it be known that the FBI will stop at nothing to protect innocent victims, and seek justice for the heinous acts committed against them."

This case was investigated by the Federal Bureau of Investigation, the Columbia County Sheriff’s Office, and the Florida Department of Law Enforcement, with the full cooperation of the Live Oak Police Department. 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.justice.gov/psc.

 Jason Sparling submitted an application for a drought disaster payment to the United States Department of Agriculture (USDA), Livestock Forage Disaster Program (LFDP), for a loss of grazing during the summer of 2014.  Based on Sparling’s statements, he received an LFDP payment of $94,696. The USDA later determined that none of Sparling’s cattle were on the drought stricken pasture during the qualifying period and Starling was not entitled to the disaster payment. 

Sparling subsequently entered into a settlement agreement and paid the government $180,000, to settle the civil debt resulting from his false statements made to the USDA, pursuant to the False Claims Act (31 U.S.C. § 3729).  The False Claims Act imposes liability on persons and companies who knowingly submit false claims to the government to get a benefit paid by the government. Persons who submit a false claim must pay to the United States a civil penalty of not less than $5,500 and not more than $11,000 for each false claim, plus three times the amount of damages which the government sustained.

The United States Attorney’s Office places a high priority on criminal and civil enforcement in cases involving all types of fraud committed against the government, and works with various law enforcement agencies to identify and investigate these matters.  The investigation, in this case was conducted by USDA, Office of Inspector General.

Assistant U.S. Attorney Cheryl Schrempp DuPris handled the civil case.

            WASHINGTON – John T. Fitzgerald, a former vice president of the Washington, D.C. office of an investment banking firm, pled guilty today to federal charges stemming from a scheme in which he allegedly accepted kickbacks for construction management contracts he steered to another firm, as well as other allegedly fraudulent activities.

            The guilty plea was announced by Alessio Evangelista, Acting U.S. Attorney in this case, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Kimberly Lappin, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Washington, D.C. Field Office.

            Fitzgerald, 48, of Washington, D.C., pled guilty in the U.S. District Court for the District of Columbia to charges of wire fraud and tax evasion. Wire fraud carries a statutory maximum of 20 years in prison and tax evasion carries a statutory maximum of five years; both also carry potential financial penalties. Under federal sentencing guidelines, he faces a range of 37 to 46 months in prison and a fine of up to $75,000. The plea agreement calls for Fitzgerald to pay $713,806 in restitution, representing his share of proceeds from the scheme, and an identical amount in a forfeiture money judgement. He also has agreed to pay $114,411 in taxes to the IRS. The Honorable Amy Berman Jackson scheduled sentencing for Feb. 23, 2018.

            A co-defendant, Bryan D. Wright, 55, of Laytonsville, Md., pled guilty in February 2016 to one count of conspiracy to engage in wire fraud and one count of conspiracy to engage in money laundering. He is awaiting sentencing.

            In his guilty plea, Fitzgerald acknowledged that he began work at the investment banking firm in 2008 and oversaw its real estate development activities and investments. His responsibilities included oversight of a commercial development project in Hanover, Md., known as the Station Ridge development project. The investment banking firm was the managing investor-owner of the project, which ultimately included three buildings for use as offices by various tenants.

            In or around mid-2011, Fitzgerald admitted, he began to invoice the general contractor on Station Ridge through a company Fitzgerald owned, and thereby obtained roughly $41,000 for himself on the project. 

            Later in 2011, Fitzgerald installed Wright as construction manager on Station Ridge, and the two agreed to an invoicing and kickback scheme that lasted into 2013. Wright was president of P&E Services, LLC. Between 2011 and 2013, through their scheme, Wright and Fitzgerald took $769,000 from the investment banking firm employing Fitzgerald, and another $417,000 from the general contracting company (which was reimbursed by the investment banking firm). Wright, through P&E and other companies, paid Fitzgerald nearly $600,000 in proceeds from the Station Ridge project, roughly half of the total amount that P&E Services obtained.

            In a related scheme involving purported projects on the Bridgewater office building in Fairfax, Va., which was another development project of the investment banking firm, Wright and Fitzgerald submitted invoices for work that was not completed, and obtained additional money from Fitzgerald’s employer.  Once again, Fitzgerald and Wright split the proceeds between them, with Fitzgerald receiving approximately $70,000.

            In his plea today, Fitzgerald admitted that the total loss to his employer as a result of his conduct on these projects was over $1.3 million, and his share of the illegal proceeds was $713,806. The tax charges stem from Fitzgerald’s failure to report the income in calendar 2012 and 201

            In announcing the plea, Acting U.S. Attorney Evangelista, Assistant Director in Charge Vale, and Special Agent in Charge Lappin commended the work of those who investigated the case from the FBI’s Washington Field Office and the Internal Revenue Service-Criminal Investigation. They acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including former Assistant U.S. Attorney David A. Last, Paralegal Specialists Tasha Harris, Aisha Keys, and C. Rosalind Pressley; Legal Assistants Angela Lawrence and John Lowell, and Litigation Technology Specialist Ron Royal. Finally, they acknowledged the work of Assistant U.S. Attorneys John Marston, Kendra D. Briggs, and Zia Faruqui, who are investigating and prosecuting the matter.

RALEIGH– Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned an indictment charging JOSE RAYMUNDO RODRIGUEZ-GONZALEZ, age 36, of Mexico, with Illegal Reentry of a Deported Alien.

RODRIGUEZ-GONZALEZ, found in Wake County, is alleged to have been previously deported subsequent to an aggravated felony conviction (sexual battery). Therefore, if convicted, he would face a maximum imprisonment term of 20 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.

The charge and allegation contained in the indictment are merely accusations.  The defendant is presumed innocent unless and until proven guilty in a court of law. 

ICE’s Enforcement and Removal Operations are investigating the case.

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that four previously deported aliens were indicted separately on December 6, 2017, by a federal grand jury for illegal re-entry into the United States by a previously deported alien. 

According to United States Attorney David J. Freed, Eulogio Perez-Reyes, age 34, of Mexico, was previously deported from the United States to Mexico in March 2009.  He is alleged to have illegally re-entered the United States sometime after March 2009, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.

Francisco Noj-Pirir, age 25, of Guatemala, was previously deported from the United States to Guatemala in April 2013.  He is alleged to have illegally re-entered the United States sometime after April 2013, and was found in the United States in Monroe County, Pennsylvania after eluding examination or inspection by immigration officers.

Jose Concepcion-Hernandez, age 34, of Mexico, was previously deported from the United States to Mexico twice in May 2007.  He is alleged to have illegally re-entered the United States sometime after May 2007, and was found in the United States in Adams County, Pennsylvania after eluding examination or inspection by immigration officers.

Under federal law, Perez-Reyes, Noj-Pirir, and Concepcion-Hernandez all face a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine. 

Jesus San Juan-Rodriguez, age 29, of Mexico, was previously deported from the United States to Mexico in September 2015.  He is alleged to have illegally re-entered the United States sometime after September 2015, and was found in the United States in Adams County, Pennsylvania after eluding examination or inspection by immigration officers. In September 2013, he was convicted in the Adams County Court of Common Pleas of Driving Under the Influence of Alcohol- second offense, an offense which subjects him to enhanced penalties in the current case.

Because of San Juan-Rodriguez’s previous conviction, under federal law he faces a maximum penalty of ten years of imprisonment, a term of supervised release following imprisonment, and a fine.  

These cases were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO).  Special Assistant United States Attorney Brian G. McDonnell is prosecuting the cases.

Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

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

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

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Anthony Vetri, 30 of Essington and Michael Vandergrift, 31 of Chester were found guilty by a federal jury of three men and nine women of murder through the use of a firearm and conspiracy to distribute oxycodone.  The trial of Vetri and Vandergrift was held from November 29, 2017, through December 7, 2017, before the Honorable Gerald J. Pappert.  

Vetri and Vandergrift were convicted of conspiracy to distribute oxycodone from 2008 until June 4, 2013.  During the conspiracy, Vetri obtained large sums of oxycodone from a registered pharmacist, Mitesh Patel, who owned and operated three pharmacies in the greater Philadelphia area.  Vetri then supplied Vandergrift with oxycodone and both distributed the drugs throughout Delaware and Philadelphia Counties.  

During the drug conspiracy, Patel also illegally provided oxycodone to others, including his business partner, Gbolahan Olabode.  Beginning in the fall of 2011, Vetri and Vandergrift conspired to eliminate Olabode as a recipient of Patel’s illegally distributed oxycodone in order to increase the volume of oxycodone that they could receive from Patel.  Vetri and Vandergrift ultimately decided to murder Olabode.  Vandergrift recruited Michael Mangold and Allen Carter to assist in the murder.  On January 4, 2012, Vandergrift, Mangold, and Carter went to Olabode’s residence in Lansdowne, Pennsylvania and waited for Olabode to return home.  When Olabode returned, Vandergrift and Mangold each used a firearm to fire 27 shots at Olabode as he walked to his home.  Olabode was struck approximately 13 times in his head and body.  He died from the gunshot wounds.  Following Olabode’s murder Vetri continued to illegally distribute oxycodone that he obtained from Patel. 

Mitesh Patel, Michael Mangold, and Allen Carter all previously pled guilty to charges for their respective involvement in drug distribution, the murder of Olabode and other offenses, and are currently awaiting sentencing.

Anthony Vetri and Michael Vandergrift each face a sentence of up to life imprisonment.  Both defendants are in custody awaiting sentencing.  Sentencing is scheduled for Anthony Vetri on March 20, 2017, and for Michael Vandergrift on March 21, 2017.

The case was prosecuted by Assistant United States Attorneys Jonathan B. Ortiz and David. E. Troyer.

The case was investigated by the Federal Bureau of Investigation, the U.S. Drug Enforcement Administration, the Internal Revenue Service’s Criminal Investigation Division, the Philadelphia Police Department, the Organized Crime Drug Enforcement Task Force, the Lansdowne Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives

GREENEVILLE, Tenn. - Following a three-day trial before the Honorable J. Ronnie Greer, U.S. District Judge, a jury convicted Michael J.W. Potter, 36, of Kingsport, Tennessee, of conspiracy to distribute 50 grams or more of methamphetamine. 

Sentencing is set for 9:00 a.m., April 2, 2017, in U.S. District Court in Greeneville. Potter faces a minimum sentence of 10 years up to a maximum of life in prison.  There is no parole in the federal system.

Evidence presented at trial revealed that an investigation into a large scale methamphetamine distribution ring in northeast Tennessee and southwest Virginia began in 2015.  In June 2016, a Tennessee Highway Patrol Officer stopped two members of the organization shortly after they delivered several pounds of crystal methamphetamine to individuals in Kingsport, Tennessee. That stop led to the execution of search warrants by the Second Judicial Drug Task Force working with the Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Tennessee Bureau of Investigation (TBI), resulting in the seizure of nearly five kilograms of crystal methamphetamine. Information obtained through the traffic stop and search warrants allowed agents to identify numerous members of the organization, which was supplied primarily by co-defendant, Nathan Hogan of Villa Rica, Georgia. 

Hogan and others, including Potter, were responsible for transporting hundreds of pounds of crystal methamphetamine, a highly addictive controlled substance, into Sullivan County, Tennessee and the surrounding area for distribution. Of the 25 individuals indicted in this conspiracy, Potter was the only one to proceed to trial.  The other 24 defendants pleaded guilty, with the exception of Shawn Dumitras, who died prior to arrest.

Law enforcement agencies participating in this joint investigation were the Second Judicial District Drug Task Force, Sullivan County Sheriff’s Office, Kingsport, Police Department, TBI, ATF and DEA.  Assistant U.S. Attorney J. Gregory Bowman represented the United States.

This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.     

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Alleged to have sold large quantities of methamphetamine in Indiana and Kentucky

New Albany– Josh J. Minkler, United States Attorney for the Southern District of Indiana and Russell M. Coleman, United States Attorney for the Western District of Kentucky, announced today the dismantling of a large drug trafficking organization (DTO) selling methamphetamine in Indiana and Kentucky.

“Drug trafficking brings gun violence that many of our Midwestern communities are experiencing,” said Minkler. “Those who choose to sell drugs in our neighborhoods will experience the full brunt of federal law enforcement and realize the Ohio River will not stifle or cooperative effort between law enforcement agencies.”

“The Department of Justice and our law enforcement partners stood shoulder to shoulder last week to promise intelligence-driven targeting of these violent drug trafficking organizations harming this great city,” said U.S. Attorney Russell Coleman. “Today’s arrests are yet another deposit on this promise; stay tuned.”

Those charged in the Southern District of Indiana with conspiracy to distribute methamphetamine include: Clifton Jones, 31, Gregory Churchill, 33, and Stanley Duke, Jr., 41 all from Louisville;  Billy Dale Sears, 44, Harry Edelen, 44, Roger Carroll, Jr., 47, from New Albany, Indiana; and Chad Albertson, 40, from Salem, Indiana. Duke faces an additional charge of possession of a firearm by a convicted felon.

          The indictment alleges that Billy Dale Sears was the leader and supervisor of the DTO which conspired to distribute large quantities of methamphetamine. Sears would obtain the methamphetamine from Clifton Jones and Gregory Churchill who both lived in Louisville. Sears would then distribute the methamphetamine to mid-level dealers in New Albany, Jeffersonville, Salem and Louisville for redistribution throughout Southwestern Indiana and Northern Kentucky.

Throughout the conspiracy, it is alleged that the DTO sold methamphetamine on a “front’ basis, where defendants provided large quantities of methamphetamine on consignment to  distributors. Payment was received after the sale by other distributors. The defendants also used telephones, using code language and text messages to discuss matters relative the trafficking operation.

In a separate indictment, returned by a grand jury in Louisville on December 5, 2017, and unsealed today, eleven defendants, all from Louisville, were charged in a single count with conspiring with each other to possess with the intent to distribute 50 grams or more of methamphetamine, a Schedule II controlled substance.

          Defendant Clifton Jones additionally faces charges in the Western District of Kentucky, along with co-defendants Dontay L. Rice, Eric R. Estey, 35,  Dandre L. Taylor, 35, Odell P. Smith, Jr., 34, William C. Freeman, 32, James E. Hall, 33, Chad J. Heiser, 37, Clarence W. Rice, Jr., Alex M. Bowles, 25, and Joseph R. Willis, 21.

           All but defendant Heiser were arrested Thursday, and are in federal custody. Defendants charged in the WDKY are scheduled for an initial appearance before Magistrate Judge Dave Whalin, in Louisville, at 2:00pm. Defendants charged in the Southern District of Indiana were scheduled to appear Friday morning before Magistrate Judge Van T. Willis.

This case was investigated by the Federal Bureau of Investigation in Indiana and Kentucky, IRS Criminal Investigation, ATF, United States Marshal Service, Jeffersonville Police Department, New Albany Police Department, Clarksville Police Department, Clark County Sheriff’s Department, Harrison County Sheriff’s Department, Indiana State Police and the Louisville Metro Police Department.

“Working collaboratively with our federal, state, and local partners we are able to target, disrupt and dismantle criminal enterprises such as this that use violence in the commission of their illegal activities so they can no longer terrorize our communities,” said W. Jay Abbott, Special Agent in Charge of the FBI’s Indianapolis Division. 

“The FBI and its partners remain dedicated to disrupting and dismantling the most violent offenders and organizations through intelligence-driven investigations,” said Amy S. Hess, Special Agent in Charge FBI Louisville. “Our goal remains the same: stop the violence, get drugs and weapons off the streets, and deliver justice for the people who live in the communities we serve.”
 

According to Assistant United States Attorney Lauren M. Wheatley who is prosecuting this case for the Southern District of Indiana and Assistant United States Attorney J. Scott Davis, from the Western District of Kentucky, all defendants face ten years to life if convicted.

An indictment is merely a charge and not evidence of guilt. All defendants are considered innocent until proven guilty in federal court.

jones.et_.al_.pdf

jones.et_.al_.pdf

BOSTON – Brian Augustine Joyce, a former Massachusetts State Senator, was arrested this morning by federal authorities for allegedly using his state senate office for private gain. 

Joyce, 55, of Westport, Mass., was charged in a federal indictment unsealed today with racketeering, extortion, honest services fraud, money laundering, conspiracy to defraud the IRS, and other charges.  The indictment alleges that Joyce secretly profited from his position as state senator by accepting a stream of concealed bribes and kickbacks in exchange for his official action on matters before the state legislature and for exerting pressure on and advising state and municipal officials to take official action on government matters.  The indictment further alleges that Joyce employed sophisticated methods to conceal his corrupt acts, including using a shell company and other entities to launder proceeds from his bribery and kickback schemes and to conceal his ongoing criminal activities.  

Specifically, the indictment alleges that Joyce agreed to use his official position to exert pressure on and advise Town Administrators to use a particular energy broker in return for kickbacks in the form of commissions to a shell company, which Joyce controlled.  It is further alleged that Joyce used his official position to pressure and advise members of the Milton Planning Board to approve a property subdivision waiver that a developer sought, in exchange for a kickback.  Joyce allegedly concealed the kickback by, among other things, falsely telling a Milton Planning Board member that he had not been paid by the developer, and by accepting payment from the developer in the form of a Jeep from one of the developer’s car dealerships.

In addition, it is alleged that Joyce took official action, or pressured others to take official action, on behalf of a coffee-business franchise owner in exchange for hundreds of pounds of free coffee.  Joyce took steps to conceal this by submitting backdated checks to the State Ethics Commission and instructed the franchise owner and his relative to falsely represent to the Ethics Commission that they had agreed to provide Joyce coffee in exchange for legal services. 

According to the indictment, Joyce also exerted pressure on and advised officials at the Massachusetts Division of Insurance to take official action on matters in favor of an Energy Insurance Brokerage Company (EIB), who paid Joyce in exchange for his official assistance in promoting, sponsoring, and filing legislation that would benefit the EIB.  The indictment also alleges that Joyce attempted to use his official position as state senator to collect money for “legal work” from representatives of a Philadelphia solar company who sought Joyce’s assistance with local permitting and pending legislation. 

Joyce is also charged with conspiring to defraud the IRS in connection with his purchase of more than $470,000 in common stock from the EIB Company and falsely reporting the stock purchase as a tax-exempt retirement account rollover in his personal tax return.

The charges of racketeering, mail fraud, wire fraud, honest services fraud and extortion provide for a sentence of no greater than 20 years in prison; the money laundering charges provide for a sentence of up to 20 years in prison; and the charge of fraud, misapplication involving federal funds provides for a sentence of no greater than 10 years in prison.  Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorneys Dustin Chao and William F. Bloomer of Weinreb’s Public Corruption and Special Prosecutions Unit are prosecuting the case.

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

United States Attorney Randolph J. Seiler announced that DaShown Keys, age 25, of Milwaukee, Wisconsin was found guilty of six counts of Aggravated Sexual Abuse of a Child and Abusive Sexual Contact of a Child as a result of a federal jury trial in Aberdeen, South Dakota.  The verdict was returned on December 7, 2017.

The charges carry a mandatory minimum sentence of 30 years, up to a maximum of life in custody and/or a $1,500,000 fine, up to life of supervised release, and a $600 special assessment to the Federal Crime Victims Fund.  

Keys was indicted by a federal grand jury on June 14, 2016. 

The conviction stems from incidents between November 1, 2013, and January 1, 2016, when Keys repeatedly sexually abused two minor victims, while Keys was staying at the home of one of the victims.

This case was investigated by the Federal Bureau of Investigation and the Sisseton-Wahpeton Tribal Police Department. Assistant U.S. Attorney Troy R. Morley prosecuted the case.

A presentence investigation was ordered and a sentencing date has not been set.  The defendant was remanded to the custody of the U.S. Marshals Service.

PROVIDENCE, RI –A federal grand jury in Providence, R.I., on Wednesday returned an indictment charging the operator of 60-foot luxury yacht with seaman’s manslaughter in the death in September 2015 of the 81-year-old operator of a 23-foot powerboat.

It is alleged that on September 22, 2015, Cooper “Chick” Bacon, 78, of Cape May, N.J., failed to take precautions required of the ordinary practice of a seaman when he was at the helm of a yacht as it made its way from a boat show in Newport, R.I., to boat show in Stanford, Conn. The Princess 60 yacht collided with a 23-foot powerboat, the Peggy K, in waters off Westerly, R.I., killing its sole occupant, Walter S. Krupinski, of Norwalk, Conn.  The collision occurred in Fishers Island Sound, on the waters off Naptree Point in the town of Westerly. 

The indictment of Cooper Bacon is announced by Acting United States Attorney Stephen G. Dambruch; Admiral Steven Poulin, Commander of the First Coast Guard District, United States Coast Guard, and Richard Cox, Special Agent in Charge, Coast Guard Investigative Service, New England Region.

According to the indictment, it is alleged that, among other things, Bacon failed to take precautions required by the ordinary practice of seamen; adequately assess the risk of collision; proceed at a safe speed; post his First Mate to look-out; and properly overtake, give-way and steer well clear of the Peggy K.

An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Bacon is scheduled to be arraigned on December 19, 2017, before U.S. District Court Magistrate Judge Patricia A. Sullivan.

Seaman’s manslaughter is punishable by statutory penalties of up to 10 years imprisonment; 3 years supervised release; and a fine of up to $250,000.

The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.

The matter was investigated by the Coast Guard Investigative Service.

Acting United States Attorney Stephen G. Dambruch thanks the many local and state agencies in Rhode Island and Connecticut that provided assistance and information to the United States Attorney’s Office in Rhode Island and to the Coast Guard Investigative Service during the investigation of this matter.

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Acting U.S. Attorney Duane A. Evans announced that JOSEPH R. ALEXANDER, age 60, a resident of Gretna, was charged yesterday in a sixteen count Indictment with bank fraud. 

According to the Indictment, ALEXANDER was the minister at a Church of Christ Congregation in Gretna.  Starting in 2006 and continuing until December 2013, ALEXANDER stole $321,491 from the church in three different schemes.  The first involved his writing church checks to himself, but creating false entries in church ledgers which indicated the checks were being written to legitimate church vendors, when in reality ALEXANDER was paying his bills and funding family vacations to Alaska and Las Vegas, among other places.  He also bought gifts for parishioners, shopping at the Apple Store and Victoria’s Secret.  He also paid his son’s college tuition with church funds.  The second method involved his opening of an online bank account without church permission and paying personal expenses from the online account.  Finally, he forged a church elder’s signature on checks which required two signatures. 

If convicted, ALEXANDER faces a maximum term of imprisonment of 30 years per count, a fine of $250,000 and five years of supervised release following any term of imprisonment.     

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

Acting U.S. Attorney Evans praised the work of the United States Postal Inspection Service in investigating this matter.   Assistant U.S. Attorney Carter K. D. Guice, Jr. of the Fraud Unit is in charge of the prosecution.

Political Consultant Pleads Guilty to Lying to the FBI in Connection withCampaign Finance Investigation

A Philadelphia-area political consultant pleaded guilty today to making a false statement to FBI agents in connection with a campaign finance investigation.  U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania and Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division made the announcement.

Donald Jones, 62, of Willingboro, New Jersey, was charged with this crime and related offenses in an indictment against him and co-defendant Kenneth Smukler returned by a federal grand jury sitting in the Eastern District of Pennsylvania on Oct. 24.  Pursuant to the plea agreement, Jones admitted to making a false statement to the FBI arising from his participation in a falsification scheme involving unlawful contributions to Jimmie Moore’s 2012 campaign for the Democratic Party’s nomination for Member of the U.S. House of Representatives.  As described in the plea memorandum, the scheme entailed Moore’s agreement to withdraw from the race in exchange for $90,000 in payments from his opponent’s campaign.  The payments exceeded the $2,000 limit on contributions from one campaign to another campaign for primary elections.  The payments, moreover, were paid to a company created by Moore’s campaign manager, Carolyn Cavaness, for the sole purpose of receiving the funds and repaying Moore’s campaign debts.  According to the plea memorandum, the payments to that company were routed through political consulting companies run by Jones and Smukler to conceal the nature and source of the funds.

As set forth in the plea memorandum, the campaign of Moore’s opponent made a $25,000 payment to D. Jones & Associates, a political consulting company run by Jones.  On or about August 30, 2012, Jones caused D. Jones & Associates to send a check to the company created by Cavaness in the amount of $25,000.  The payment was disguised as a payment for Cavaness’s consulting services, even though Cavaness performed no work for Jones’ company or the campaign of Moore’s opponent.  Jones understood that the purpose of the transfers was to conceal the payment of funds from the opposing campaign to Moore’s campaign in exchange for Moore’s withdrawal.  According to the plea memorandum, the campaign of Moore’s opponent additionally made $65,000 in payments to Voter Link Data Systems, a political consulting company run by Smukler, and Smukler’s company subsequently sent Cavaness $65,000 in payments to conceal the nature and source of those funds as well.

According to the plea memorandum, on or about May 5, 2017, Jones made a false statement to FBI agents investigating this matter.  When questioned about the $25,000 payment from his company to Cavaness’s company, Jones falsely stated to the agents that Cavaness had performed work for his company and the campaign of Moore’s opponent in exchange.  According to the plea memorandum, Jones made this false statement knowingly and willfully and for the purpose of concealing from the FBI the fact that the $25,000 payment was an illegal campaign contribution.

Cavaness pleaded guilty to the charge of causing false statements to the FEC in connection with this matter on July 25.  Moore pleaded guilty to the charge of causing false statements to the FEC in connection with this matter on Oct. 2. 

The charges against the remaining co-defendant, Smukler, are still pending and a defendant is presumed innocent unless and until proven guilty in a court of law.

The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Eric Gibson and Trial Attorney Jonathan Kravis of the Criminal Division’s Public Integrity Section.

FOR IMMEDIATE RELEASE                              ContactELIZABETH MORSE

www.justice.gov/usao/md                                        at (410) 209-4855

Baltimore, Maryland – United States District Judge Ellen L. Hollander sentenced Igor Yasinov, age 28, of Baltimore, Maryland today to 17 years in prison, followed by five years of supervised release, for armed robbery. Judge Hollander also ordered Yasinov pay $500,000 in restitution.

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Terrence B. Sheridan of the Baltimore County Police.

According to his plea agreement, on December 25, 2012, Yasinov and co-conspirator Stanislav Yelizarov ("Yelizarov"), and others committed a burglary of a residence in Baltimore, where they stole a shotgun and semiautomatic handgun. The handgun would later be used in the robbery of a jewelry store on January 16, 2013.

In the fall of 2012, Yelizarov also devised a plan to commit the jewelry store robbery and recruited Yasinov, Zilberman, Sosonko, M. Yelizarov, Peter Magnis, Sorhib Omonov and others to participate in the robbery. Prior to the robbery, the conspirators gathered intelligence, including conducting surveillance and attaching a GPS device to the car of an employee of the jewelry store in order to learn the employee’s travel routine and habits.  Zilberman also exploited his friendship with the employee to obtain information about the operation of the jewelry store and the habits of the employee. As part of the planning, S. Yelizarov obtained a law enforcement-type light bar and a loudspeaker to impersonate a police officer to stop the employee's vehicle. Yasinov participated in the obtaining of a rental vehicle for use during the crime.

According to the plea agreements, on January 15, 2013, Zilberman enticed the employee to visit his home, in order to alert the other co-conspirators of the employee’s whereabouts.  While the employee was at Zilberman’s home, the other conspirators met at S. Yelizarov’s residence to prepare for the kidnapping and robbery, including preparing the firearms and donning masks and gloves. Early in the morning on January 16, 2013, M. Yelizarov and Omonov followed the employee from Zilberman’s home and notified the other conspirators of the employee’s location so they could follow the employee. S. Yelizarov, Sosonko, Yasinov, and Magnis used a law enforcement-type light bar and a loudspeaker to impersonate a police officer and pull over the employee. Brandishing firearms which were supplied by S. Yelizarov, the conspirators removed the employee from his car, bound and blindfolded the employee, put him into the trunk of his own car, and drove him to a predetermined location.

Once at the location, Sosonko, Yasinov, Magnis, and S. Yelizarov continued to brandish firearms and threatened to kill the employee’s family if he did not comply with their demands or if he reported the incident to police. The employee complied and at approximately 3:52 a.m., Sosonko and S. Yelizarov drove the employee’s vehicle from the remote location to the jewelry store. Yasinov and Magnis stayed with the employee and held him at gunpoint. M. Yelizarov and Omonov were stationed near the jewelry store to act as look-outs. S. Yelizarov and Sosonko entered the jewelry store and stole jewelry, stones, and watches, valued at about $500,000, then drove back to the remote location. The employee was then placed back into the trunk of his car and driven to another location, where he was left. The employee was able to kick his way out of the trunk through the back seat of his car.

On January 18, 2013, S. Yelizarov sold a portion of the stolen jewelry for approximately $29,000 to an FBI informant. On January 19, 2013, S. Yelizarov traveled to Brooklyn, New York to sell some, but not all, of the jewelry and stones taken during the robbery of Antony Jewelers.   S.  Yelizarov received over $100,000 in cash for the sale of the jewelry and stones. On or about January 21, 2013, S. Yelizarov returned to Maryland and divided the cash proceeds among the members of the conspiracy and others. Yasinov received in excess of $5,000 from S. Yelizarov for his role in the crimes.

Stanislav Yelizarov, age 27, of Pikesville, Maryland, was sentenced to 30 years in prison, after he pleaded guilty to a robbery conspiracy, kidnapping, and brandishing a firearm in relation to a crime of violence. Marat Yelizarov, age 29, of Pikesville, and Aleksey Sosonko, age 36, of Owings Mills, were sentenced to 18 years and 14 years in prison, respectively. Peter Aleksandrov Magnis, age 29, of Hydes, Maryland, and Sorhib Omonov, age 29, of Baltimore, were sentenced to seven years in prison and four years in prison, respectively. Grigoriy Zilberman, age 27, of Owings Mills, Maryland, was sentenced to three years in prison.

Acting United States Attorney Stephen M. Schenning commended the FBI, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.

Acting U.S. Attorney Duane A. Evans announced that RONY NOE DIAZ-MAZARIEGOS, age 27, a citizen of Guatemala, pled guilty yesterday to a one-count Bill of Information charging him with Illegal use of a Social Security Number.

CHARLOTTE, N.C. – A federal jury convicted Robert M. Boston, 54, of Hickory, N.C., of conspiracy, wire fraud, securities fraud and money laundering for his role in defrauding victims of more than $25 million, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. The jury delivered the guilty verdict following a five-day trial, which began on Monday December 4, 2017.

John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney Murray in making today’s announcement.

According to filed court documents and evidence presented at trial, Boston and co-defendant Robert LaBarge defrauded franchisees, investors, and lenders of their start-up company, Zloop. Through their fraud, the defendants obtained millions of dollars, much of which was spent on expensive personal real estate, a private plane, and the racing career of Boston’s son. Evidence at trial indicated that Boston caused Zloop to spend more money on his son’s racing career than the entire operational revenue of the company before it went bankrupt. According to evidence presented at trial, while inquiring about the potential purchase of a private island, Boston wrote, “My son is a NASCAR driver I spend 5 Million a year so he can play race car driver.”

According to previously filed court documents, trial evidence and witness testimony, Boston and LaBarge founded Zloop, an electronic waste recycling firm, in 2012 and began marketing Zloop franchises the same year.  Court records show that Boston concealed crucial information from franchisees, including that Boston’s former company had filed bankruptcy, that Boston had filed personal bankruptcy, that Boston had a judgment against him for fraud, and that Boston had been held liable in an action alleging that he had knowingly submitted false financial documentation to a bank to obtain a $2.9 million line of credit. When Boston was warned that concealing this information from the franchisees of Zloop would be fraud, he wrote, “it is my decision how I want to move forward.”

Beginning in or about December 2012, Boston and LaBarge caused Zloop to raise money through the sale of equity.  To sell equity in the company, Boston and LaBarge caused a misleading private placement memo (“PPM”) to be sent to investors who invested millions in Zloop.  Evidence at trial demonstrated that the PPM contained material half-truths and omissions, including the omission of the litigation and bankruptcy history of Boston, that Zloop was planning to use the investors’ money to pay off a $4 million debt that it owed to a prior lender, and that Boston and LaBarge had already caused Zloop to spend more than $1.5 million on their personal real estate. Evidence at trial also indicated that the books and records of Zloop had been falsified to conceal the personal real estate expenses.

Evidence at trial also demonstrated that Boston promised investors that their money would be held until the offering closed, but he instead spent their money on the same day that much of it came in.

When Zloop investors sought the return of their money in or about the middle of 2013, Zloop sought a loan from an individual identified as Victim 1. To do so, Boston repeatedly falsified emails to make the company look more attractive to Victim 1.

According to trial evidence, Boston induced Victim 1 to secure a $14 million line of credit from a bank. After Boston and LaBarge caused Zloop to draw approximately $3.5 million from that line of credit, they spent hundreds of thousands of dollars on, among other things, a private plane, a new Corvette, and a new Grand Cherokee.  Zloop subsequently drew an additional $1.3 million from the credit card line, of which more than $500,000 was spent on racing-related expenditures and approximately $79,808 on a suite at a professional football stadium.  

LaBarge pleaded guilty to conspiracy to commit wire fraud on November 2, 2017.

Both Boston and LaBarge are released on bond pending sentencing.  The penalty for each of the conspiracy, wire fraud and securities fraud charges carry a maximum term of 20 years in prison. The maximum penalty for the money-laundering conspiracy charge is 10 years in prison.  A sentencing date has not been set.

The FBI led the investigation.  Assistant U.S. Attorneys Taylor J. Phillips and Daniel Ryan, of the U.S. Attorney’s Office in Charlotte, are in charge of the prosecution.

HOUSTON – A local bar owner has entered a guilty plea to conspiring with others to defraud the United States by failing to pay taxes on income he received from vending machines located in the bars he owned, announced Acting U.S. Attorney Abe Martinez.

In the plea agreement filed in the record of the case, Matthew J. Mitchell admitted he had partial ownership of multiple bars in the Houston area that operated under the name “On the Rox.” Mitchell conspired with others to conceal the cash income from vending machines located in the bars from the IRS.

According to the plea agreement, Mitchell admitted he failed to report to the IRS a total of $276,806 in income for tax years 2010, 2011 and 2012. Mitchell’s failure to pay taxes on this income resulted in a tax loss to the United States of $63,386.

U.S. District Judge Sim Lake accepted the plea and has set sentencing for March 15, 2018. At that time, Mitchell will face up to five years in federal prison and a possible $250,000 maximum fine. Mitchell was permitted to remain on bond pending that hearing.

IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.