ALBUQUERQUE – Justin Aaron Hudkins, 33, of Alamogordo, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to methamphetamine trafficking crime charges.

Hudkins was one of 34 individuals charged in December 2015 with federal and tribal drug offenses as the result of an 18-month multi-agency investigation led by the DEA and BIA into methamphetamine trafficking on the Mescalero Apache Reservation.  Eighteen defendants, including five members of the Mescalero Apache Tribe and 13 non-Natives were charged in six federal indictments and a federal criminal complaint.  Sixteen other members of the Mescalero Apache Tribe were charged in tribal criminal complaints approved by the Mescalero Apache Tribal Court.

The investigation leading to the federal and tribal charges was initiated in May 2014, in response to an increase in violent crime on the Mescalero Apache Reservation perpetrated by methamphetamine users.  The investigation initially targeted a drug trafficking organization that was allegedly distributing methamphetamine within the Reservation, and later expanded to include two other drug trafficking organizations in southeastern New Mexico that allegedly served as sources of supply for the methamphetamine distributed within the Reservation.  In Aug. 2014, the investigation was designated as part of the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) program, which combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.  The investigation is one of the first OCDETF investigations to utilize electronic surveillance (wiretaps) in Indian Country.  More than ten kilograms of methamphetamine were seized during the course of the investigation.

Hudkins was arrested on an indictment charging him and seven co-conspirators with conspiracy to distribute methamphetamine in Otero County, N.M., between April 9, 2015 and Oct. 16, 2015, and other drug trafficking offenses.  During today’s proceedings, Hudkins entered a guilty plea to participating in a methamphetamine trafficking conspiracy and using a communications device to facilitate a drug trafficking crime.  In his plea agreement, Hudkins admitted that in Aug. and Sept. 2015, he obtained gram quantities of methamphetamine from a co-defendant, which he sold to other individuals.

At sentencing, Hudkins faces a maximum of 20 years in federal prison followed by not less than three years of supervised release.  A sentencing hearing has yet to be scheduled.

Hudkins is the 12^th of the 18 federal defendants to enter a guilty plea.  The remaining six federal defendants have entered not guilty pleas to the charges against them.  Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.

The federal and tribal cases were investigated by the Las Cruces office of the DEA, District IV of the BIA’s Office of Justice Services (Mescalero Agency), BIA’s Division of Drug Enforcement, Mescalero Tribal Police Department, Hatch Police Department, FBI and Lea County Drug Task Force.  Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the federal cases, and Mescalero Tribal Prosecutor Melissa Chavez is prosecuting the tribal cases.

Assistant U.S. Attorneys W. Mark Conover (619) 546-6763 or Shane P. Harrigan  (619) 546-6981

NEWS RELEASE SUMMARY– May 25, 2016

SAN DIEGO – Just a few hours after murdering his girlfriend in Panama and chopping up her body with a machete, retired Marine Brian Karl Brimager sent an email to a friend: “Hey bro, whatcha up to? I got stories for days. I’m living on an island off the coast of panama loving life and living semper free!!!!!!”

A few days later, after he’d disposed of Yvonne Baldelli’s body in the Panamanian jungle, Brimager accessed her bank account and used the money to buy rounds of drinks for female friends at a bar. “Thanks Vonnie,” he announced, as he raised his glass in a toast.

After returning to the United States, Brimager received an email from another friend who told him to say hello to Baldelli. In his reply, Brimager wrote that he’d “ditched the bitch.” In a social media post about the sale of the machete he used to sever Baldelli’s limbs, Brimager joked: “I only dismembered one stripper with it – it’s hardly used.”

Because of the heinous nature of the crime and his actions afterward – particularly the way he celebrated her death and tormented Baldelli’s family with his elaborate cover up - Brimager was sentenced in federal court by U.S. District Judge Jeffrey T. Miller today to 26 years in prison, ending a long and legally challenging FBI-led investigation and prosecution spanning thousands of miles, multiple countries and more than four years.

“The day of reckoning has come for Brian Brimager,” said U.S. Attorney Laura Duffy. “Not only did he show a callous disregard for Yvonne Baldelli’s life by viciously beating, stabbing, dismembering and dumping her in the jungle, but his words and actions in the hours, days and months following his horrendous crime exhibited an extreme lack of remorse. He stole a precious daughter, sister, aunt and friend, and now he is paying the price.”

“I hope today’s sentencing brings some closure to Ms. Baldelli’s family, knowing that her murderer will serve a very long prison sentence for her cruel and vicious murder,” said FBI Special Agent in Charge Eric S. Birnbaum. “I commend the professionalism and dedication of our international law enforcement partners, the prosecutors and the FBI agents here in San Diego and Panama who worked tirelessly to obtain justice for Yvonne Baldelli.”

Judge Miller also ordered Brimager to pay $11,132 in restitution to Baldelli’s father and a $10,000 fine.

At the sentencing hearing, prosecutors argued that the circumstances of the crime – including mutilation of the body and Brimager’s multiple attempts to convince Baldelli’s family that she was still alive - amounted to “extreme conduct,” a legal term of art that merits an enhanced sentence.

Prosecutors told the court at today’s hearing that eight witnesses in Panama related separate incidents to the FBI in which they saw Brimager beating, punching, choking and threatening to kill Baldelli. When the 220-pound ex-Marine killed the 110-pound Baldelli on November 27, 2011, the evidence showed that he broke her teeth and nose and stabbed her multiple times before dragging her lifeless body to the shower, where he mutilated her.

Judge Miller agreed that these actions amounted to extreme conduct and handed down a sentence that is stronger than a typical second-degree murder term. “This murder was particularly cruel and depraved,” the judge said. “The lengths Mr. Brimager went to to avoid detection were particularly brazen and ultimately shattering to the Bardelli family. I dare say they will never recover. A day may never go by without them thinking of Ms. Baldelli’s murder and the images seared in to their psyches.”

During the hearing, nine members of Baldelli’s family, including her parents, sister, nieces and closest friends, told the court how they have suffered emotionally and physically because of the loss, the way in which she was killed, and the torture of not knowing her whereabouts. Some described in wrenching detail their search for her body in the muddy spider-infested swamps of the Panamanian jungle – too afraid to find her, too afraid not to.

During the court hearing, Brimager faced family members seated in the gallery and said he was sorry. But the family wasn’t receptive. “Don’t look at us!” someone fired back. “Sure,” scoffed another.

During her victim impact statement before the court, Michelle Faust, Baldelli’s sister, said: “Today we got an apology – a hollow last-minute attempt to save himself. Last night we talked about forgiveness. But forgiveness is for those who repent, not for those who cover their crimes, not for those who confess only when their back’s against the wall.”

According to sentencing documents, after dismembering her body, Brimager stuffed her torso into a military duffle bag and shoved her lower limbs into garbage bags. He then hiked approximately 1.5 miles to the other side of the island where he threw the duffle bag and garbage bags down an embankment into the remote Panamanian jungle -- where they remained for 21 months until a local Panamanian stumbled onto the duffle bag containing her skeletonized remains.

Brimager pleaded guilty on February 24, 2016 before U.S. District Judge Jeffrey T. Miller to Foreign Murder of a United States National. In his guilty plea, Brimager also admitted that he obstructed the investigation into her murder by destroying, concealing and disposing of evidence, including a blood-stained mattress, clothes and jewelry;  killed Baldelli’s two dogs; accessed Baldelli’s email account after her murder and impersonated Baldelli in emails sent from her account to friends and family; withdrew money from Baldelli’s bank account in Costa Rica after her death; and provided false statements to an FBI agent – all in an attempt to make it seem as though Baldelli were alive and well and traveling with another man in Costa Rica.

Brimager has been in custody since June 2013.

Assistant U.S. Attorney Mark Conover told the court that Brimager killed Baldelli in order to silence her. She’d discovered that Brimager had a girlfriend and daughter in San Diego. Baldelli could’ve ruined it for Brimager by revealing their relationship to the girlfriend. Within two weeks of returning to San Diego after Baldelli’s murder, Brimager married the girlfriend.

DEFENDANT                                  Case Number:  13CR2381-JM

Brian Karl Brimager                            Age: 40          

SUMMARY OF CHARGE

Foreign Murder of a United States National – Second Degree, Title 18, United States Code, Sections 1119 and 1111; Maximum Penalties: Life imprisonment, $250,000 fine, restitution

AGENCIES

Federal Bureau of Investigation, San Diego Division and Panama City Legal Attaché Office

U.S. Embassy, Panama City

Office of International Affairs, U.S. Department of Justice

Human Rights and Special Prosecution Section, U.S. Department of Justice

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage husband and wife were indicted by a federal grand jury on 14 charges of wire fraud and a scheme to defraud.  In a separate indictment, the husband was charged with narcotics and firearms crimes.  

Arnold Wesley Flowers II, 41, and Miranda May Flowers, 31, were the named defendants in the wire fraud indictment.  Arnold Wesley Flowers II was named as a sole defendant in the narcotics and firearm indictment.

On January 19, 2016, Arnold Wesley Flowers II and Miranda May Flowers reported that their residence had been burglarized.  On January 22, 2016, they contacted State Farm Insurance and filed a claim for $82,000 worth of damages to their residence and stolen electronics, jewelry, and clothing.  During the month of January the Flowers contacted State Farm Insurance by telephone and email regarding the value of the items allegedly taken during the burglary and damage done to their residence.  On March 29, during a search of a storage unit associated with the Flowers, law enforcement found many of the items the Flowers claimed had been stolen during the January 19 burglary.  The investigation revealed that the Flowers had transported the items to the storage unit on January 17, 2016, prior to reporting the burglary at their residence.    

During a search of the Flowers’ residence on March 29, 2016, Arnold Wesley Flowers II was found in possession of cocaine and firearms.  Mr. Flowers has prior convictions for crimes punishable by more than one year imprisonment.

The Federal Bureau of Investigation, Anchorage Police Department, and the State of Alaska Division of Insurance conducted the investigation leading to the indictment in this case.

An indictment is only a charge and is not evidence of guilt.  A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

Preet Bharara, the United States Attorney for the Southern District of New York, and John P. Carlin, Assistant Attorney General for National Security, announced that VIRGIL FLAVIU GEORGESCU was convicted today by a jury of conspiring to sell large quantities of military-grade weaponry to the Fuerzas Armadas Revolucionarias de Colombia (the “FARC”) – a designated foreign terrorist organization – to be used to kill Americans in Colombia.  GEORGESCU’s conviction followed a 10-day trial in Manhattan before U.S. District Judge Ronnie Abrams.

Manhattan U.S. Attorney Preet Bharara said: “As the jury swiftly found, Virgil Flaviu Georgescu conspired to kill American officers and provide material support to the FARC.  In concert with his co-defendants, Georgescu conspired to obtain and sell to the FARC military weapons, including anti-aircraft cannons and rocket propelled grenades, to be used against American personnel and aircraft in Colombia.  Having sought to profit from the murder of U.S. officers abroad, Georgescu has now been convicted in the U.S. by a unanimous jury.”

According to the allegations in the Indictment, other documents publicly filed in Manhattan federal court, and the evidence introduced at trial:

Between May 2014 and December 2014, GEORGESCU, a Romania-based weapons broker, conspired with his co-defendants, a former Romanian government official and a former member of the Italian Parliament, to sell an arsenal of weapons, including machine guns and anti-aircraft cannons, to the FARC, with the understanding that the FARC would use the weapons against United States personnel in Colombia.  During a series of recorded telephone calls and in-person meetings, GEORGESCU and his co-conspirators agreed to sell the weapons to three confidential sources (the “CSs”), who represented that they were acquiring these weapons for the FARC but were, in fact, working with the Drug Enforcement Administration (“DEA”).  GEORGESCU and his co-conspirators agreed to provide these weapons to the CSs with the specific understanding that the weapons would be used to kill Americans and, in particular, to shoot down American helicopters and airplanes.

GEORGESCU first spoke with a CS in May 2014.  Thereafter, GEORGESCU recruited both of his co-conspirators to help obtain the weapons for the CSs, with the understanding that the former Romanian government official would provide weapons expertise and the former Italian member of Parliament would help secure fraudulent end-user certificates, in order to make the illegal sale of weapons look legitimate.  GEORGESCU instructed his co-conspirators and others involved in the deal to use encrypted applications when communicating about the weapons deal to avoid detection by U.S. authorities. 

Over the course of five consensually recorded meetings with the CSs in Romania and Montenegro, GEORGESCU and his co-conspirators provided the CSs with catalogues of weapons that included anti-aircraft cannons, rocket propelled and thermobaric grenades, and other high-powered weapons, as well as military-grade optical equipment.  During these meetings, the CSs explained that the arms would be used to kill Americans and GEORGESCU offered his thoughts on what weapons would best suit the FARC’s needs. 

Between September 2014 and December 2014, GEORGESCU and his co-conspirators traveled to Romania, Montenegro, Italy, Germany, Albania, Poland, and Bulgaria to advance the weapons deal.  During this period, the co-conspirators met with weapons suppliers, obtained sample fraudulent end-user certificates, and test-fired military-grade rifles.  In December 2014, GEORGESCU and his co-conspirators secured a signed contract from a European weapons supplier to provide more than $17 million dollars’ worth of weapons to a straw purchaser.  On December 15, 2014, GEORGESCU met with the CSs, showed them the signed contract, and discussed means of payment and transportation of the weapons to Colombia. 

GEORGESCU was arrested by Montenegrin authorities on the charges in the Indictment on December 15, 2014, and extradited to the United States on February 25, 2015.

*                      *                      *

GEORGESCU, 43, of Romania, was convicted of one count of conspiracy to kill United States officers or employees, which carries a maximum sentence of life in prison, and one count of conspiracy to provide material support or resources to a designated foreign terrorist organization, which carries a maximum sentence of 15 years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.  GEORGESCU is scheduled to be sentenced by Judge Abrams on September 16, 2016, at 3:00 p.m.

Mr. Bharara praised the outstanding investigative efforts of the DEA’s Special Operations Division, the DEA’s Bucharest Country Office, the DEA’s Rome Country Office, the Montenegrin National Police, and the Romanian Authorities.  Mr. Bharara also thanked the Counterterrorism Section of the Department of Justice’s National Security Division and the Department of Justice’s Office of International Affairs.

This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit.  Assistant U.S. Attorneys Andrea Surratt and Ilan Graff are in charge of the prosecution, with assistance from Trial Attorney Josh Parecki of the Counterterrorism Section.

PORTLAND, Ore. – Billy J. Williams, United States Attorney for the District of Oregon, announced that a federal jury in Portland found Steven Douglas Rockett, 47, of Forest Grove, guilty of producing child pornography outside of the United States, engaging in illicit sexual conduct in a foreign country, five counts of producing or attempting to produce child pornography, and possession of child pornography.  U. S. District Judge Michael H. Simon presided over the seven day trial, which concluded on May 24, 2016.  It is the first foreign sex tourism trial held in Oregon.  A sentencing hearing is scheduled for August 30, 2016.

The evidence presented at trial established that Rockett traveled to the Philippines, where he sexually abused Filipino children, and produced or attempted to produce child pornography depicting them.  The evidence also established that Rockett solicited children (either directly or through a parent) both in the Philippines and in Oregon, to take and send him sexually explicit images of themselves.  In addition, Rockett surreptitiously recorded children undressing and showering at his residence in Forest Grove, at a former residence in Aloha, and in hotel rooms in the Philippines.

The investigation was a collaborative effort on the part of the Forest Grove Police Department, the Washington County Sheriff’s Office, and the Federal Bureau of Investigation.  Investigators executed search warrants at Rockett’s residence, and seized computer equipment and digital data storage devices.  Investigators found a pin-hole camera hidden in a wall in a guest bathroom, which Rockett used to record images of naked children.  Another spy camera, hidden inside a clock radio, contained surreptitious video recordings of naked Filipino children in the bathroom and shower of Rockett’s hotel room.  Rockett appeared in some of the videos.

FBI Special Agents traveled to Cebu City, Philippines, where they identified and interviewed some of the victims depicted in the videos, and some of the children who Rockett solicited to send him sexually explicit images.  The jury heard testimony from seven victims who were sexually abused or exploited by Rockett in Oregon and overseas.  The jury deliberated several hours before reaching their verdict.

“This verdict is a testament to the dedication and hard work of federal, state, and local authorities who diligently followed the evidence in this case,” Williams said.  “It is a shining example of interagency cooperation in the hard fight to keep children safe here in Oregon and outside the United States.  It is vindication for the courageous child victims who spoke out against their abuser.”  Williams added, “This verdict serves notice to all sexual predators that we will pursue you wherever you commit your crimes and wherever you hide – whether on the internet, in the shadows of our community, or abroad.”

The investigation was hindered by Rockett’s use of computer encryption and disc-wiping software.  As a result, investigators cannot be certain that they have identified all of Rockett’s child victims.

This case was investigated by the Forest Grove Police Department, the Washington County Sheriff’s Office, the Northwest Regional Computer Forensics Laboratory, the Washington County District Attorney’s Office, and the FBI, and was prosecuted in federal court by Assistant United States Attorneys Paul T. Maloney and Gary Y. Sussman, Project Safe Childhood Coordinator for the District of Oregon.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse.  Launched in May 2006 by the U.S. Department of Justice and led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

ALBUQUERQUE – The U.S. Marshal Service (USMS) arrested Colleen Calamia, 37, of Albuquerque late this afternoon on a criminal complaint charging her with harboring and concealing a federal fugitive, announced U.S. Attorney Damon P. Martinez and U.S. Marshal Conrad E. Candelaria.  Calamia will make her initial appearance in federal court tomorrow morning.

The criminal complaint alleges that Calamia harbored her husband, Mario Montoya, 31, after he absconded from a halfway house in Albuquerque on May 20, 2016.  Court records reflect that Montoya, who was under indictment for being a felon in possession of a firearm and theft of mail, was released from federal custody on an order requiring him to reside in an Albuquerque-area halfway house and to comply with other conditions.  The complaint alleges that Montoya violated the conditions of his release on May 20, 2016, by absconding from the halfway house and violating other release conditions.  Montoya allegedly fled from the halfway house in a black sport utility vehicle.

On May 20, 2016, the court issued an emergency warrant authorizing Montoya’s arrest for violating his release conditions.  According to the criminal complaint, on May 24, 2016, the USMS learned that Montoya was frequenting a residence located at 312 Western Skies (the residence) in Albuquerque.  While conducting surveillance near the residence, USMS Deputies and Task Force officers allegedly observed Calamia driving a black Escalade that parked in front of the residence.  They then allegedly observed Calamia and Montoya exit the vehicle and move objects from the vehicle and into the residence.

The complaint alleges that Calamia then left the residence in the black Escalade and USMS Deputies executed a traffic stop on her vehicle.  When the Deputies questioned Calamia about Montoya’s whereabouts, she allegedly told them that Montoya was alone in the residence. 

According to the complaint, when a USMS arrest team attempted to serve the arrest warrant on Montoya, he fired upon the deputies, initiating an exchange of gunfire.  After the arrest team was able to retreat to a safe location, a second team later entered the residence.  The second team found Montoya in a closet; he had been struck in the exchange of gunfire and was deceased.

If convicted, Calamia faces a statutory maximum penalty of five years in prison.  Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.

The USMS investigated this case, and Assistant U.S. Attorney Jacob A. Wishard is prosecuting it.  Mr. Wishard was also prosecuting the case against Montoya, which was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Postal Inspection Service.

The shooting incident resulting in Montoya’s death is under investigation.  As a matter of policy, Department of Justice agencies, including the U.S. Attorney’s Office and the U.S. Marshals Service, may not comment on ongoing investigations.

U.S. Attorney Kenneth A. Polite announced that JORGE PULIDO-HERRERA, a/k/a JORGE LICONA-CERRATO, age 45, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.

U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter.  Assistant United States Attorney Irene González is in charge of the prosecution.

According to court documents, MARTINEZ-QUIJANO was previously removed from the United States on June 27, 2014.  He was later found in the Eastern District of Louisiana on

March 1, 2016, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.

MARTINEZ-QUIJANO faces a maximum term of imprisonment of two (2) years, as well as a fine of $250,000. U.S. District Court Judge Mary Ann Vial Lemmon set sentencing for July 7, 2016.

According to court documents, MENDOZA-ZAVALA was previously removed from the United States on September 6, 2012. MENDOZA-ZAVALA was later found in the Eastern District of Louisiana on March 30, 2016, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.

If his prior conviction is proven at sentencing, MENDOZA-ZAVALA faces a maximum term of imprisonment of ten (10) years, as well as a fine of $250,000.  U.S. District Judge Mary Ann Vial Lemmon set sentencing for July 7, 2016.

ALBUQUERQUE – Aaron Hubbard, 34, an enrolled member of the Navajo Nation who resides in Fort Defiance, Ariz., was sentenced today in federal court in Albuquerque, N.M., to 120 months in federal prison followed by ten years of supervised release for his abusive sexual contact of a minor child conviction.  Hubbard will be required to register as a sex offender after completing his prison sentence.

Hubbard was arrested on Feb. 25, 2015, on an indictment alleging that he sexually abused a child victim from Sept. 1, 2011 through May 30, 2012, on the Navajo Indian Reservation in McKinley County, N.M.

On Nov. 2, 2015, Hubbard entered a guilty plea to an abusive sexual contact with a child charge.  In entering his guilty plea, Hubbard admitted sexually molesting a Navajo child who was less than 12 years old from Sept. 1, 2011 through May 30, 2012.  Hubbard committed the crime within the Navajo Indian Reservation.

This case was investigated by the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety.  Assistant U.S. Attorney Raquel Ruiz-Velez prosecuted the case under Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse.  Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.

WICHITA, KAN. - Thirteen people are charged in a federal indictment unsealed today alleging they used stolen identities in an effort to spend or access more than $3.5 million of other people’s money and credit, Acting U.S. Attorney Tom Beall said.

The indictment alleges the conspirators divided up the work of stealing from mailboxes, forging identification documents, obtaining fraudulent credit cards and shopping with stolen identities. Some of the conspirators are alleged to have been paid in drugs for their labor. Among the items purchased were a $43,500 Jaguar automobile and a $62,000 Dodge Challenger Hellcat.

The joint federal and local investigation was based on the fact that as early as October 2013 the U.S. Postal Inspection Service recognized that a significant volume of mail was being stolen from blue postal collection boxes, residential mailboxes and mail rooms in the Wichita area.

The indictment alleges the conspirators:

• Stole mail from the U.S. Postal Service’s blue boxes, a post office and residential customers’ mailboxes.

• Altered checks.

• Used stolen information to manufacture new checks.

• Made purchases using altered and manufactured checks.

• Created profiles of victims using information from stolen mail.

• Obtained credit cards using stolen identities.

• Manufactured false identification documents with stolen information including driver’s licenses.

• Used stolen identities to obtain credit and merchandise based on the victims’ credit history and incomes.

The government alleges the loss in this matter is approximately $3.5 million.

The 50-count indictment includes charges of aggravated identity theft, trafficking in stolen identities, receipt of stolen mail, unlawful production of identity documents, conspiracy, bank fraud, possession with intent to distribute methamphetamine and firearms charges.

“This case highlights the importance of the strong working relationships among federal, state and local law enforcement,” said Inspector in Charge Craig Goldberg, U.S. Postal Inspection Service, Denver Division. “The U.S. Postal Inspection Service is committed to working with our partners to ensure the continued trust people place in the mail and protecting the public from financial victimization by enforcing the laws that defend the nation's mail system from illegal use.” 

The following defendants are named in the indictment:

Samuel Below, 29, Phoenix, Ariz.

Chad Michael Abildgaard, 25, Goddard, Kan.

Krysalias Lynn Bernhardt, 20, Clearwater, Kan.

Jacob Michael Martin, 31, Wichita, Kan.

Melanie Marie Morey, 41, Wichita, Kan.

Jillian N. Parker, 34, Wichita, Kan.

Jeremy Peterson, 42, Wichita, Kan.

David Allen Babedew, 24, Wichita, Kan.

Dustin Michael Reida, 28, Wichita, Kan.

Thomas Rye, 36, Phoenix, Ariz.

Daniel Christian Thomas, 31, Wichita, Kan.

Justin Alan Vanley, Rose Hill, Kan.

Jacey Jane Vidricksen, 27, Goddard, Kan.

Upon conviction, the crimes carry the following penalties:

• Conspiracy to distribute methamphetamine (counts one and 33): Not less than 10 years in federal prison and a fine up to $10 million.

• Conspiracy to commit bank fraud, bank fraud and attempted bank fraud (counts two, six, 10, 12, 22, 25, 27, 29, 31, 40 and 43): Up to 30 years and a fine up to $1 million on each count).

• Conspiracy to commit wire fraud, mail fraud, and receipt of stolen mail (count three): Up to five years and a fine up to $250,000 on each count.

• Conspiracy to produce identification documents, production or use of identification documents (counts four, 13, 17, 32, and 50): Up to 15 years and a fine up to $250,000 on each count.

• Unlawful possession of a firearm (counts five, eight and 11): Up to 10 years in federal prison and a fine up to $250,000.

• Aggravated identity theft (counts seven, 19, 21, 23, 38, 41, 44, 46, 47 and 48): A mandatory two years consecutive to the underlying offense and a fine up to $250,000.

• Theft or receipt of stolen mail (counts nine, 24, 26, 28, 30, 39 and 42): Up to five years and a fine up to $250,000 on each count.

• Possession with intent to distribute methamphetamine (count14): Up to 20 years and a fine up to $1 million.

• Possession of a firearm in furtherance of drug trafficking (counts 15, 16, 34, and 35).

• Possession of a stolen firearm (count 36): Up to 10 years in federal prison and a fine up to $250,000.

• Possession of an unregistered silencer (count 37): Up to 10 years and a fine up to $10,000.

• Making a false statement during a federal investigation (count 49): Up to five years and a fine up to $250,000)

The U.S. Postal Inspection Service, the Sedgwick County Sheriff’s Department, the Wichita Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Debra Barnett and Assistant U.S. Attorney Alan Metzger are prosecuting.

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.

ALBUQUERQUE – James Garcia, 46, of Grants, N.M., was sentenced today in federal court in Albuquerque, N.M., to 36 months in prison followed by three years of supervised release for violating the federal firearms laws.

Garcia was arrested in July 2014, on a criminal complaint charging him with possession of methamphetamine and being a felon in possession of firearms and ammunition on July 11, 2014, in Bernalillo County, N.M.  According to the complaint, when Deputy U.S. Marshals arrested Garcia on an outstanding state warrant, Garcia was in possession of a loaded handgun, ammunition, approximately 5.2 grams of methamphetamine, and drug paraphernalia. 

Garcia was subsequently indicted on Feb. 10, 2015, and charged with being a felon in possession of a firearm and ammunition.  The indictment alleged that in July 2014, Garcia was prohibited from possessing firearms or ammunition due to prior convictions for aggravated assault against a household member, aggravated assault with a deadly weapon, and false imprisonment.

On Feb. 16, 2016, Garcia pled guilty to the indictment.  In entering the guilty plea, Garcia acknowledged that in July 2014, he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.

This case was investigated by the Albuquerque offices of the DEA, Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Marshals Service with assistance from the 2^nd Judicial District Attorney’s Office.  The case was prosecuted by Assistant U.S. Attorney David M. Walsh.

CHARLESTON, W.Va. – Two men were sentenced today to federal prison for oxycodone crimes, announced Acting United States Attorney Carol Casto. Kenneth Edward Campbell, 48, of Charleston, was sentenced to two years in federal prison for conspiracy to distribute oxycodone. In a separate drug prosecution, Jonathan Belcher, 37, of Logan, was sentenced to six years in federal prison for distributing oxycodone.

On August 23, 2013, the United States Postal Inspection Service intercepted a package containing oxycodone that had been sent from Detroit to Charleston. An undercover officer posing as a mail carrier delivered the package and confronted the man who accepted delivery. That man told police that Campbell had offered to give him oxycodone if he would allow the drug parcel to be delivered to his residence. Officers used the man to conduct a controlled delivery of the package to Campbell at his place of employment on the West Side of Charleston. Campbell was arrested upon taking possession of the package.

In a separate prosecution, Jonathan Belcher admitted that in August 2014, he sold oxycodone pills to a confidential informant working with law enforcement. The drug deal took place at Belcher's residence.

The case against Campbell was investigated by the United Postal Inspection Service and the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Joshua Hanks is in charge of Campbell's prosecution. United States District Judge John T. Copenhaver, Jr., imposed Campbell's sentence. 

The U.S. 119 Drug Task Force investigated the Belcher case. Assistant United States Attorney John J. Frail handled the prosecution of Belcher. United States District Judge Thomas E. Johnston imposed Belcher's sentence.

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

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BOSTON – Jovan Torres, 26, of Springfield, Mass., was arraigned today on three counts of distribution and possession with intent to distribute heroin and one count of distribution of heroin and crack cocaine.

According to the indictment, on four separate days in July and August 2013, Jovan Torres distributed heroin.  On one of those days, he also distributed crack cocaine.  Torres was detained pending a detention hearing scheduled for June 1, 2016 before U.S. District Court Magistrate Judge Katherine Robertson.

The charging statutes provides a sentence of no greater than 20 years in prison, at least three years of supervised release, and a fine of $1 million on each count.  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 and 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 Office.

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

PORTLAND, Or - A federal jury sitting in Portland, Oregon, after a six-day trial, found three family members who ran two strip clubs in the Portland area – Cabaret Lounge I at 503 W Burnside Street and Cabaret Lounge II at 17544 SE Stark Street – guilty of conspiracy to defraud the IRS and charges relating to filing false tax returns.

From 2007 through mid-2011, the defendants’ strip clubs collected more than $1.5 million in cash door charges and dancer stage fees. The defendants maintained a set of books at the Cabaret clubs that did not include the $1.5 million in stage fees and door fees and kept a second set of books, which tracked all of the cash receipts, including the stage and door fees, at the home of David and Marci Kiraz. 

IRS Special Agents executed search warrants at the strip clubs and at the residence of David and Marci Kiraz, and seized 85 banker boxes of records and all the files on 11 computers. IRS Special Agents then spent over 600 hours reviewing these records, located the second set of books, and proved David Kiraz filed false tax returns.

David Kiraz reported the business activity of the strip clubs each year on his individual income tax returns. The defendants gave their tax return preparers the false books maintained at the strip clubs, intentionally causing the return preparers to create tax returns for David Kiraz that did not report between $330,000 and $460,000 in door fees and stage fees each year.  In this way, the defendants evaded $500,000 in income taxes for tax years 2007 through 2010.

The jury convicted David G. Kiraz, 34, of Happy Valley, his father George D. Kiraz, 56, of Portland, and David’s brother Daniel Kiraz, 31, of Portland, of conspiring to defraud the IRS by filing false federal income tax returns for David Kiraz. The jury also found David Kiraz guilty of three counts of filing false tax returns, George Kiraz guilty of three counts of aiding and assisting in the preparation and filing of false tax returns, and Daniel Kiraz guilty of one count of aiding and assisting in the preparation and filing of a false tax return. The jury acquitted Marci Kiraz, wife of David Kiraz.

Sentencing is scheduled August 30, 2016, before Senior U.S. District Court Judge Robert E. Jones for the District of Oregon in Portland.  Each defendant faces a statutory maximum sentence of five years in prison on the charge of conspiracy to defraud the IRS and three years in prison on the charges of filing false tax returns and aiding and assisting in the preparation and filing of false tax returns.  They also face a maximum term of three years of supervised release and a maximum fine of $250,000 on each count.

"Every business is required to pay its fair share of taxes," said U.S. Attorney Billy J. Williams.  “This office, in partnership with the IRS, will vigorously investigate and prosecute business owners who take advantage of the cash-intensive nature of their businesses to conceal income from the IRS and cheat on their taxes.”

This case was investigated by special agents with IRS-Criminal Investigation in Portland, Oregon and prosecuted by Trial Attorney Leslie A. Goemaat of the Justice Department’s Tax Division and Assistant U.S. Attorneys Seth D. Uram and Quinn P. Harrington for the District of Oregon.

OAKLAND – Konrad Wolff was sentenced to 108 months in prison for receipt of child pornography announced United States Attorney Brian J. Stretch.   The sentence was handed down today by the Honorable James Donato, U.S. District Judge and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.

Wolff, 28, previously of Albany, Calif., was arrested early last year at Ft. Benning, GA.  On December 18, 2015, after a bench trial before Judge Donato, Wolff was convicted of receiving thousands of images and hundreds of videos of child pornography in violation of 18 U.S.C. § 2252(a)(2).  The evidence at trial established that Wolff possessed videos and images of minor and prepubescent children engaging in sexually explicit and sadomasochistic conduct.  Judge Donato also found at sentencing that the defendant was in possession of certain manuals which provided step-by-step instructions on how to sexually exploit children while avoiding detection by law enforcement.

Wolff was originally indicted on December 18, 2014, and charged with one count of possessing child pornography in violation of 18 U.S.C. § 2252 (a)(4)(B).    On February 19, 2015, the grand jury returned a two-count superseding indictment that added the more serious receipt of child pornography charge, a violation of 18 U.S.C. § 2252(a)(2).         

In addition to the prison term, Judge Donato also sentenced the defendant to a 15-year period of supervised release and ordered him to pay restitution.

Assistant U.S. Attorney Scott D. Joiner prosecuted the case with the assistance of Ponly Tu and Patricia Mahoney.  The prosecution is the result of a three-month investigation by the FBI and the University of California Berkeley Police Department.

The owner and president of a Miami-area consulting and staffing company was sentenced today to 60 months in prison for his role in a $2.3 million Medicare fraud scheme.

U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office, made the announcement.

Carlos Rodriguez Nerey, 45, of Miami, the owner and president of Nerey Professional Services Inc., was sentenced by U.S. District Judge Darrin P. Gayles of the Southern District of Florida.  In addition to imposing the prison term, Judge Gayles ordered Nerey to pay $2,366,736 in restitution.   On April 1, 2016, following a one-week jury trial, Nerey was convicted of one count of receiving kickbacks in connection with a Federal Health Care Program and one count of conspiracy to defraud the United States and pay health care kickbacks.

According to evidence presented at trial, from October 2014 to September 2015, Nerey was involved in a conspiracy to accept kickbacks in return for referring Medicare beneficiaries to Mercy Home Care Inc. and D&D&D Home Health Care Inc. to serve as patients, including those who did not qualify for home health care services according to Medicare rules and regulations.  His acts contributed to the submission of $2 million in fraudulent claims to Medicare as well as their subsequent payment on those fraudulent claims, according to trial evidence. 

The FBI and HHS-OIG investigated this case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida.  Fraud Section Trial Attorneys Lisa Miller and Elizabeth Young prosecuted the case. 

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion.  In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.

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

BOISE – Michael Kulikoff, 30, and Kenneth Miller, 57, both of California City, California, were sentenced yesterday for their role in a conspiracy to distribute oxycodone and hydromorphone, U.S. Attorney Wendy J. Olson announced.  Chief U.S. District Judge B. Lynn Winmill sentenced Kulikoff to 24 months in prison, three years of supervised release, and ordered him to forfeit $15,000 in cash proceeds.  Judge Winmill sentenced Miller to 46 months in prison, three years of supervised release, and ordered him to forfeit $8,000 in cash proceeds.  Both Kulikoff and Miller pleaded guilty on March 8, 2016.

According to the plea agreement and court proceedings, Kenneth Miller, Diana Miller, and Crystal Clark sold their prescriptions of oxycodone to Kulikoff.  Kulikoff admitted to distributing those and other prescription pills in Boise, Idaho.  Kulikoff admitted that he distributed between 500 and 1750 30mg pills of oxycodone to a confidential informant and an undercover officer in Idaho.  At sentencing, Judge Winmill found that Miller obstructed justice by threatening a witness in California, and imposed a higher sentence on him. 

Co-defendants Diana Miller, 41, and Crystal Clark 43, also of California City, California, were previously sentenced to prison.   Diana Miller was sentenced on January 15, 2016, to 15 months in prison, five years of supervised release, and was ordered to forfeit $1,400 in cash proceeds.  Crystal Clark was sentenced on April 21, 2016, to 18 months in prison, three years of supervised release, and was ordered to forfeit $8,000 in cash proceeds. 

The case was investigated by the Drug Enforcement Administration and the Boise Police Department as an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation. OCDETF partners include the Federal Bureau of Investigation; Drug Enforcement Administration (DEA); Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s; Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service.

The case was initiated and investigated by the Boise Police Department, and the DEA led Tactical Diversion Squad which is comprised of law enforcement personnel from the DEA, Ada County Sheriff’s Office, Boise Police Department, Idaho State Police, Meridian Police Department, Nampa Police Department and U.S. Department of Health and Human Services Office of Inspector General.

United States Attorney Deborah R. Gilg announced that Brandon L. Bjorkman, 39, of Lincoln, Nebraska, was sentenced today in Lincoln, Nebraska, to 41 months in prison by United States District Judge John M. Gerrard, for possession of child pornography.  After his release from prison, Bjorkman will also serve five years of supervised release and be required to register as a sex offender.

On May 25th, 2015, investigators with the Lincoln Police Department were investigating computers sharing child pornography files via the internet. On that date, officers identified an IP address as having files available for sharing. Officers were able to download files from a computer at that IP address. A subpoena to Time Warner/Roadrunner regarding the IP address indicated the IP address was registered to Bjorkman at an address later determined to be his residence.

In June of 2015, a search warrant was executed at Bjorkman’s residence and a desktop computer was seized. Investigators previewed the computer and located files depicting sexually explicit conduct involving female children under the age of 18.  Investigators interviewed Bjorkman. Bjorkman admitted that he used the internet to download the images and videos. Investigators later found thousands of images and videos of minors engaged in sexually explicit conduct as defined by Federal law.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

This case was investigated by the Lincoln Police Department. 

CHATTANOOGA, Tenn. – On May 26, 2016, Corrie Gillispie, a.k.a., Tyme, BiggtymeChattanoogatyme, and Profit Tyme, 40, of Chattanooga, Tenn., and Willie Watkins, a.k.a., Block Baker, Soldier, and Killer, 40, also of Chattanooga, were arrested by agents of the U.S. Immigration and Customs Enforcement's Homeland Security Investigations (HSI), and Chattanooga Police Department, on charges involving conspiracy, kidnapping, and sex trafficking. 

On May 17, 2016, a federal grand jury returned an indictment against Gillispie and Watkins for the above-referenced charges.  Details of the offenses are outlined in the indictment, which is on file with the U.S. District Court and available to the public. 

On May 27, 2016, Gillispie and Watkins had initial appearances before the Honorable Christopher H. Steger, U.S. Magistrate Judge, and both pleaded not guilty.  Both were detained pending their next appearance in U.S. District Court, which for Gillispie is a detention hearing on May 31, 2016, at 11:00 a.m.  Watkins waived his detention hearing and no further court appearances have been scheduled for him at this time.        

If convicted of kidnapping, Gillispie and Watkins face up to life in prison.  If convicted of sex trafficking, Gillispie faces a term of not less than 15 years in prison and will be placed on the sex offender registry for a minimum of 25 years.

This ongoing investigation is being conducted by the HSI, FBI and Chattanooga Police Department.  Assistant U.S. Attorney Jay Woods represents the United States.

Members of the public are reminded that these are only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt. 

If you believe you have information that could assist law enforcement in this ongoing investigation, please call the HSI tip line at 866-347-2423.

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