LOS ANGELES– An electrical engineer from Glendale who was found guilty of violating the Economic Espionage Act for stealing and distributing trade secrets belonging to his former employer was sentenced today to federal prison.

          Derek Wai Hung Tam Sing, 45, was sentenced by United States District Judge Christina A. Snyder to serve one year and one day in prison.

          Judge Snyder presided over a bench trial in September and found Sing guilty in a written ruling issued in January. In her 28-page ruling, Judge Snyder convicted Sing of 32 counts of violating the Economic Espionage Act by transmitting and possessing numerous trade secrets.

          Sing worked at the Pasadena-based Rogerson Kratos (RK) in 2012. Until he was fired by the aircraft avionics company, Sing had access to RK trade secrets, and he signed a confidentiality agreement that prohibited him from disclosing any confidential information and trade secrets that belonged to the company.

          According to a sentencing memorandum filed by prosecutors, Sing’s short tenure at RK was “tumultuous…he was late on assignments, showed up late to work, and had a bad attitude. He created disparaging paraphernalia, such as mugs and bottle openers referring to RK employees as imbeciles, and distributed them to his colleagues. Eventually, he was fired, but not before he took home with him a trove of documents related to RK’s confidential trade secrets, including at least 27 schematics.”

          After being terminated, Sing retained materials that he had collected while working at RK, despite being specifically asked to return all trade secrets. Instead, Sing “packaged the trade secrets with sufficient supporting documentation and instructions so that other competitor companies would be able to use the trade secrets and reverse engineer RK’s products,” according to Judge Snyder’s written verdict, which noted that Sing testified at trial that he “wanted to get back at Rogerson Kratos” for not appreciating his work as an employee.

          Sing prepared packages that included schematics of RK products and a “readme” document that explained the importance of the proprietary information and instructed competitors to reverse engineer the products. In early 2013, Sing sent the stolen trade secrets to other companies that produced avionics, including a company outside of the United States. Sing also sent flash drives with the trade secrets to companies. Judge Snyder found that Sing illegally sent seven schematics to three different companies, and that he illegally possessed four of those schematics.

          In its recommendation to the court, the United States Probation Office

concluded that “Sing acted out of anger, and intended to cause harm to his former employer. He has shown no remorse,” according to the government’s sentencing memo.

          “Mr. Sing tried to conceal his illegal theft and transmission of trade secrets by using fictitious email accounts,” said United States Attorney Eileen M. Decker. “If not for one of the competitors that received the proprietary secrets alerting authorities, Mr. Sing might have caused a devastating blow to his former employer. Intellectual property is the lifeblood of the American economy and provides critical value to businesses and employees.”

          “In addition to violating the law by stealing proprietary information, Mr. Sing further victimized his former employer by advertising his theft of trade secrets to the company’s competitors,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI takes theft of intellectual property very seriously as the compromise of such data affects the American economy and can weaken our national security.”

          The case against Sing was investigated by the Federal Bureau of Investigation.

Tampa, FL – U.S. District Judge James D. Whittemore today sentenced Kevin Wain (41, Tampa) to four years in federal prison for credit card fraud. The Court also ordered him to pay $585,028.99 to the approximately 48 affected financial institutions. Wain pleaded guilty on October 29, 2015.

According to court documents, from at least September 20, 2012, through and including the date of his arrest in June 2015, Wain engaged in a multi-state scheme to use counterfeit credit cards to buy high-end housewares, which he then sold on eBay for cash. Wain used stolen credit cards from numerous financial institutions, without the account holders’ knowledge or permission.

The investigation revealed that Wain had eBay and PayPal accounts listed in his name and address. Profits from the sales in these accounts were deposited into bank accounts in Wain’s own name. Since opening his account in May 2010, Wain has received approximately $881,143 in payments for selling items online.

The eBay records showed that on or about September 20, 2011, Wain purchased a MSR605 Magnetic Credit Card Reader/Writer, which can read and write magnetic striped cards and is typically used to encode and re-encode credit and debit card numbers onto counterfeit credit and debit cards.

Wain’s eBay sales transactions also showed the following:

a.       From September 20, 2012, to February 15, 2015, he sold approximately 755 Vitamix blenders in various models for a total profit of $399,713.08;

b.       From March 12, 2013, to February 18, 2015, he sold approximately 197 Roomba Robot vacuums in various models for a total profit of $91,141.25; and

c.       From April 13, 2013, to June 1, 2013, he sold approximately 9 Dyson DC41 Animal vacuums for a total profit of $3,456.99.

Wain engaged in this credit card fraud scheme primarily near his home in the Tampa area, but also as far away as Texas and Illinois, primarily using stolen credit and debit card numbers to make purchases at Williams Sonoma. To date, investigators have identified more than $585,000 in purchases by Wain at Williams Sonoma and Bed Bath and Beyond alone, using counterfeit credit cards embedded with the stolen account information of over 125 identity theft victims.

This case was investigated by the United States Secret Service. It was prosecuted by Assistant United States Attorney Mandy Riedel.

United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on June 6, 2016, by U.S. District Judge Roberto A. Lange.

Odell Thomas Goodshield, Jr., age 57, was sentenced to 13 months in custody, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.

Goodshield was indicted for Failure to Register as a Sex Offender by a federal grand jury on February 17, 2016.  He pled guilty on March 29, 2016.

On June 14, 1999, Goodshield was sentenced to 188 months in federal custody for Aggravated Sexual Abuse of a Minor.  As a result of his conviction, he is required to register as a sex offender.  Between January 6, 2016, and January 28, 2016, Goodshield, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under Federal Law, failed to properly register as a sex offender in Pennington County and elsewhere.  

This case was investigated by United States Marshals Service.  Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.

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

United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Possession of Firearm by a Prohibited Person and Possession of a Stolen Firearm was sentenced on June 2, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.

Patrick Harding, age 59, was sentenced to 20 months of imprisonment, followed by 3 years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.

Harding was charged on November 19, 2014, and was found guilty of both offenses after a three-day federal jury trial in January 2016. The conviction stems from Harding, a previously convicted felon, knowingly possessing a stolen Glock, model 23C, .40 caliber pistol in Rapid City.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Ben Patterson prosecuted the case. 

SAN FRANCISCO- Pharmaceutical companies Genentech, Inc. and OSI Pharmaceuticals, LLC will pay $67 million to resolve False Claims Act allegations that Genentech and OSI Pharmaceuticals, Inc. made misleading statements about the effectiveness of the drug Tarceva to treat non-small cell lung cancer.  The announcement was made today by United States Attorney Brian J. Stretch; Principal Deputy Assistant U.S. Attorney General Benjamin C. Mizer; Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General Steven Ryan; and Howard R. Sklamberg, the Federal Food and Drug Administration’s Deputy Commissioner for Global Regulatory Operations and Policy. 

Genentech, located in South San Francisco, California, and OSI Pharmaceuticals, located in Farmingdale, New York, co-promote Tarceva, which is approved to treat certain patients with non-small cell lung cancer or pancreatic cancer.  OSI Pharmaceuticals LLC is the successor to OSI Pharmaceuticals Inc., which was acquired by Astellas Holding US Inc. in 2010 and converted to a limited liability company in 2011.  The settlement resolves allegations that, between January 2006 and December 2011, Genentech and OSI Pharmaceuticals made misleading representations to physicians and other health care providers about the effectiveness of Tarceva to treat certain patients with non-small cell lung cancer, when there was little evidence to show that Tarceva was effective to treat those patients unless they had never smoked or had a mutation in their epidermal growth factor receptor, which is a protein involved in the growth and spread of cancer cells.

As a result of today’s $67 million settlement, the federal government will receive $62.6 million and state Medicaid programs will receive $4.4 million.  The Medicaid program is funded jointly by the state and federal governments.

“This settlement demonstrates the government’s unwavering commitment to pursue violations of the False Claims Act and recover taxpayer dollars spent as a result of misleading marketing campaigns,” said U.S. Attorney Brian Stretch for the Northern District of California.

“Pharmaceutical companies have a responsibility to provide accurate information to patients and health care providers about their prescription drugs,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “The Department of Justice will hold those companies accountable that mislead the public about the efficacy of their products.”

“Pharmaceutical companies that make misleading or unsubstantiated statements about their products can put patients at risk,” said Deputy Commissioner Howard R. Sklamberg for FDA’s global regulatory operations and policy. “The FDA will continue to work to protect the public's health by ensuring that companies do not mislead healthcare providers about their products.”

“Drug manufacturers that make misleading claims about their product’s effectiveness can jeopardize the health of patients -- in this case, cancer patients,” said Special Agent in Charge Steven J. Ryan for the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).  “Our agency will continue to protect both patients and taxpayers by holding those who engage in such practices accountable for their actions.”

The settlement resolves allegations filed in a lawsuit by former Genentech employee Brian Shields, in federal court in San Francisco.  The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery.  Shields will receive approximately $10 million.  The claims resolved by the settlement are allegations only, and there has been no determination of liability.

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $29.8 billion through False Claims Act cases, with more than $18.2 billion of that amount recovered in cases involving fraud against federal health care programs.       

Assistant U.S. Attorney Ila C. Deiss and U.S. Department of Justice Civil Division Trial Attorney Jennifer Cihon handled the case with the assistance of Paralegal Jonathan Birch. The settlement is the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Northern District of California, with assistance from the HHS-OIG, the HHS Office of Counsel to the Inspector General, the HHS Office of the General Counsel-CMS Division, the FDA’s Office of Chief Counsel, the FDA’s Office of Criminal Investigations, the Office of the Inspector General for the Office of Personnel Management, the FBI, the Department of Defense Office of the Inspector General, the Office of the General Counsel for the Defense Health Agency and the National Association of Medicaid Fraud Control Units.      

SAN FRANCISCO – Charlyne Basada, AKA Charlyne Melendres, was sentenced today to 65 months of imprisonment for bank fraud and identity theft, announced United States Attorney Brian J. Stretch and Jean Ackerman, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration.  The sentence follows Basada’s guilty plea to the charges and her acknowledgement that she helped to defraud four employers collectively of more than a million dollars.

Basada, 38, of San Francisco, pleaded guilty on January 13, 2016, to charges that she fraudulently made payments to herself from her former employers’ checking accounts.  Basada worked as a bookkeeper or office manager for four companies from 2009 through 2015.  In her position at each company, she obtained access to the payment systems of each company.  Basada admitted she devised and executed a scheme to defraud each of her former employers by using the corporate payment systems to initiate fraudulent payments to herself.  In so doing, she created the false appearance that she was entitled to funds for wages, reimbursements, and other payments.  Her theft diverted money from, among other things, employee pension benefit plans.

Basada also prepared checks that were intended to pay personal vendors of one of her former employers.  Her employer signed these checks believing that they would be paid to vendors.  However, Basada fraudulently completed the payee portion of the check to “cash” and deposited the checks into her own personal bank account.  Basada admitted that the total loss to all four employers from her scheme was $1,085,918.90 and that she abused a position of trust at each employer.  Further, Basada acknowledged that she made some repayments to some of her former employers, but the total amount still owed to her former employers is $1,063,975.78. 

Basada was indicted by a federal grand jury on September 11, 2015, and was charged with twelve counts of bank fraud, in violation of 18 U.S.C. § 1344; four counts of wire fraud, in violation of 18 U.S.C. § 1343; and two counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1).   Pursuant to her plea agreement, Basada pleaded guilty to one count of bank fraud and one count of aggravated identity theft.

The sentence was handed down by the Honorable Charles R. Breyer, U.S. District Judge.  In addition to the prison term, Judge Breyer sentenced the defendant to five years of supervised release.  Restitution is to be determined at a later date.  Basada was ordered to surrender to begin serving her sentence on September 6, 2016.

Assistant U.S. Attorney Benjamin Kingsley is prosecuting the case with the assistance of Jessica Meegan.  The prosecution is the result of an investigation conducted by the San Francisco Regional Office of the United States Department of Labor, Employee Benefits Security Administration.

ALBUQUERQUE – Moises Jimenez-Salas, 37, a Mexican national illegally in the United States who previously has been deported to Mexico three times, was arraigned this morning in federal court in Albuquerque, N.M., on an indictment charging him with violating the federal firearms and narcotics trafficking laws.  During this morning’s proceedings, Jimenez-Salas entered a not guilty plea to the indictment.  He remains in federal custody pending trial.

Jimenez-Salas was arrested on May 12, 2016, and charged in a criminal complaint with possession of methamphetamine and heroin and using and carrying a firearm and ammunition in relation to a drug trafficking crime.  Court records reflect that on May 11, 2016, Bernalillo County Sheriff’s Office (BCSO) detectives responded to a motel located at Coors Blvd. NW and Interstate 40 in Albuquerque after receiving information regarding drug activity at the motel.   At the motel, the detectives allegedly observed Jimenez-Salas carrying a cardboard box allegedly containing 463 grams of methamphetamine and 16 grams of heroin.  During a search incident to arrest, the detectives allegedly found another bag in Jimenez-Salas’ pocket which allegedly contained 21 grams of methamphetamine.  They also allegedly found a firearm and ammunition on Jimenez-Salas’ waistband.   

Jimenez-Salas was subsequently charged in a four-count indictment on May 25, 2016.  The indictment charges Jimenez-Salas with being an alien illegally in possession of a firearm and ammunition, possession of heroin and methamphetamine with intent to distribute, and using and carrying a firearm in relation to a drug trafficking crime.  The indictment alleges that Jimenez-Salas committed the crimes on May 11, 2016, in Bernalillo County, N.M. 

If convicted of the illegal alien in possession of a firearm and ammunition charge, Jimenez-Salas faces a maximum penalty of ten years in federal prison.  If convicted of the methamphetamine trafficking charge, Jimenez-Salas faces a mandatory minimum of five years and a maximum of 40 years in federal prison.  If convicted of the heroin trafficking charge, Jimenez-Salas faces a maximum penalty of 20 years in federal prison.  If convicted of the possession of a firearm in relation to a drug trafficking crime charge, Jimenez faces mandatory sentence of five years in prison that must be served consecutive to any other sentence imposed.  Charges in complaints and indictments are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.

This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and BCSO and is being prosecuted by Assistant U.S. Attorney Rumaldo R. Armijo.

This case is being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution.  Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.  Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was indicted by a federal grand jury today for illegally possessing a firearm after a woman reported that he shot at her and her children.

Senecca T. Spencer, 40, of Independence, was charged with being a felon in possession of a firearm in an indictment returned by a federal grand jury in Kansas City, Mo.

Today’s indictment alleges that Spencer, who has prior felony convictions, was in possession of a Jimenez Arms 9mm pistol and ammunition on May 25, 2016. The indictment replaces a federal criminal complaint that was filed against Spencer on May 26, 2016. Spencer remains in federal custody.

According to an affidavit filed in support or the original criminal complaint, police officers were called to an Independence residence on a report of a domestic violence disturbance and shots fired at the scene. When they arrived at the residence, the affidavit says, the victim told officers that she and Spencer had been arguing and the argument escalated. When he left the house, allegedly carrying the 9mm pistol, she and her children locked all the doors and windows to prevent his return.

The victim told police that as she and her children were standing in the kitchen area of the residence, Spencer pointed the handgun at her, from the “porch area” of the residence, through a window, and fired the handgun. Investigators later determined that a bullet had shattered the kitchen window, traveled through the house and penetrated an interior wall/trim area.

Spencer was stopped in his vehicle near the intersection of 43^rd Street and Phelps and arrested. As he was being placed under arrest, a police officer found a 9mm cartridge in Spencer’s front left pocket. The loaded 9mm pistol was discovered in the center console area of the vehicle.

Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. According to the affidavit, Spencer has at least 11 felony convictions, including seven felony convictions for assault and violent crimes, and convictions related to breaking and entering and possession of controlled substances with the intent to distribute them.

Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

This case is being prosecuted by Assistant U.S. Attorney Bradley K. Kavanaugh. It was investigated by the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

PROVIDENCE, R.I. – A federal grand jury in Providence today returned a four-count indictment charging Jordan Monroe, 50, of Warwick, R.I., with producing, receiving and possessing child pornography. Monroe was arrested on May 13, 2016, after Homeland Security Investigations (HSI) agents allegedly discovered tens of thousands of file folders containing images and videos of child pornography on computers seized from Monroe’s residence.

The indictment, announced by United States Attorney Peter F. Neronha and Matthew J. Etre, Special Agent in Charge of HSI for New England, charges Monroe with one count of coercing and using a minor to produce child pornography, two counts of receiving child pornography and one count of possessing child pornography.

As part of an ongoing investigation nationally, HSI’s Cyber Crimes Center Child Exploitations Unit and the Department of Justice, Child Exploitation and Obscenity Section, High Technology Investigative Unit has identified Internet billboards used for posting, sharing and viewing child pornography. It is alleged that numerous IP addresses in the United States and outside the country have been identified as sharing and viewing child pornography on the billboards. It is alleged that one such IP address was identified as belonging to a person who resides at Monroe’s residence.

According to court records, during the execution of a court authorized search warrant at Monroe’s residence on May 13, 2016, HSI agents, assisted by members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force and the Warwick Police Department, seized six computers, three which acted as servers. A forensic review of the contents of the computers has, to date, revealed tens of thousands of files which allegedly contain images and videos of child pornography. It is alleged that some of the images and videos were produced by Monroe.

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.

Monroe has been detained in federal custody since his arrest on May 13, 2016.           

The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.

The FBI is assisting HSI in the investigation of this matter.

###

Contact:

Jim Martin (401) 709-5357

email: USARI.Media@usdoj.gov

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ALBUQUERQUE – Rodolfo Rene Ley, 24, of Tucson, Ariz., was arraigned this morning in federal court in Albuquerque, N.M., on an indictment charging him with trafficking heroin in New Mexico.

Ley was arrested at the Amtrak Train Station in Albuquerque on May 13, 2016, after the DEA allegedly found approximately one kilogram of heroin in three clear plastic wrapped bundles under Ley’s clothing during an interdiction search.

Ley was subsequently indicted on May 25, 2016, and charged with possession of heroin with intent to distribute on May 13, 2016, in Bernalillo County, N.M.

If convicted of the charge in the indictment, Ley faces a statutory mandatory minimum of ten years and a maximum of life in federal prison.  Charges in criminal complaints are merely accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt. 

This case was investigated by the Albuquerque office of the DEA.  Assistant U.S. Attorney Eva Fontanez is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. 

The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico.  Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities.  Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico. 

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

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Adrian, Mo., man was indicted by a federal grand jury today no charges related to drug trafficking and illegally possessing firearms.

Jeffrey K. Fisher, 30, of Adrian, was charged in a four-count indictment returned by a federal grand jury in Kansas City, Mo.

Today’s indictment alleges that Fisher possessed 50 grams or more of methamphetamine to distribute on Aug. 1, 2015. He is also charged with possessing marijuana to distribute and with making his residence available for the purpose of unlawfully distributing and/or using methamphetamine.

The indictment also charges Fisher will being an unlawful user of a controlled substance while in possession of firearms. Fisher allegedly was in possession of nine rifles, a shotgun and two pistols on Aug. 1, 2015.

Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bates County, Mo., Sheriff’s Department.

CHARLESTON, W.Va. – An Ohio man pleaded guilty today to a federal sex crime involving minors, announced Acting United States Attorney Carol Casto. Robert N. Bray, III, 38, of Logan, Ohio, entered his guilty plea to enticing minors to engage in sexual activity.

Bray admitted that in July 2015, he used a computer and cell phone to communicate with an individual he believed to be the mother of a 10-year-old female and a 5-year-old male in Parkersburg. In reality, Bray was communicating with an undercover law enforcement officer. Bray continued communicating with the undercover officer, thinking he was arranging to engage in sexual activity with the minors. Bray arranged a meeting on July 22, 2015, and when he arrived in West Virginia, he was arrested. That same day, law enforcement executed a search warrant on Bray’s Ohio residence and seized a computer containing almost 300 images of minors engaged in sexually explicit conduct.

Bray faces a federal prison sentence of 10 years, followed by 20 years of supervised release. Bray will also be required to register as a sex offender. Sentencing is scheduled for September 7, 2016.

This prosecution is the culmination of a comprehensive investigation conducted by the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, the West Virginia State Police Bureau of Criminal Investigation, the Parkersburg Police Department, the Parkersburg Narcotics Task Force, the Wood County Sheriff’s Department, the Hocking County, Ohio, Sheriff’s Office, the Ohio Bureau of Criminal Investigation, and the FBI.

Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.

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

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BOISE – Steven W. Clyne, 69, of Meridian, made an initial appearance today for dealing firearms without a license, U.S. Attorney Wendy J. Olson announced.  A federal grand jury in Boise indicted Clyne on May 11, 2016.  The indictment alleges that from January 2013 until November 2015, Clyne willfully engaged in the business of dealing firearms without a license. 

Clyne appeared in court for the first time today.  He appeared on a summons and was released on his own recognizance.  Trial is scheduled for August 8, 2016, at the federal courthouse in Boise before Chief U.S. District Judge B. Lynn Winmill.  

The charge of dealing firearms without a license is punishable by up to five years in prison, a maximum fine of $250,000, and up to one year of supervised release.  The government is seeking forfeiture of the multiple firearms involved in the offense.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. 

An indictment is a means of charging a person with criminal activity.  It is not evidence.  A person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

PITTSBURGH - A resident of Greene County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of production, distribution, and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.

The 41-count indictment named Eric James Stull, age 48, of Clarksville, Pennsylvania, as the sole defendant.

According to the indictment, from May 8, 2006 to Dec. 26, 2015, Stull produced 41 video and image files of the sexual exploitation of a minor. The indictment further alleges that on or about July 21, 2015, Stull knowingly distributed a video containing material depicting the sexual exploitation of a minor to an undercover Pennsylvania State Police Corporal. The indictment further alleges that on or about April 29, 2016, Stull possessed images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.

The law provides for a maximum sentence of life imprisonment for the production of child pornography counts, a maximum sentence of 20 years imprisonment for distribution of child pornography, a maximum sentence of 10 years imprisonment for possession of child pornography, a maximum term of supervised release of life, and a fine of $10,250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.

The Pennsylvania State Police, the Federal Bureau of Investigation, and the Greene County District Attorney’s Office conducted the investigation leading to the Indictment in this case.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

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

PITTSBURGH - A former resident of Valencia, Pennsylvania, has been sentenced in federal court to 48 months imprisonment, followed by 15 years supervised release, on a charge of possession of material depicting the sexual exploitation of a minor, United States Hickton announced today.

Senior United States District Judge Terrence F. McVerry imposed the prison sentence on Earl F. Forsythe, 53, of Valencia, Pennsylvania. In addition, Judge McVerry ordered Forsythe to pay $2,500 in restitution to two minor victims.

According to information presented to the court, the court was advised that on Sept. 6, 2013, a search warrant was executed at Forsythe’s residence for the seizure of computers and electronic equipment, following an undercover investigation by the Pennsylvania State Police which revealed that Forsythe had been trading images of child pornography over an on-line chat network. The contents of Forsythe’s computers revealed his possession of hundreds of videos and photographs depicting the sexual exploitation of minors, some of whom were under the age of 12 years.

Assistant United States Attorneys Jessica Lieber Smolar and Carolyn J. Bloch prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Pennsylvania State Police for conducting the investigation leading to the successful prosecution of Forsythe.

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

          LOS ANGELES - A South Los Angeles man was arrested today on federal fraud charges for participating in a lottery scam that allegedly targeted elderly victims with promises of cash prizes and cars – as long as they paid taxes and fees.

          Carl Dean Bullock, 65, was arrested at his residence this morning without incident by inspectors with the United States Postal Inspection Service. Bullock is expected to be arraigned on a 20-count indictment this afternoon in United States District Court.

          A federal grand jury on June 3 returned an indictment that charges Bullock with 13 counts of mail fraud, three counts of wire fraud and four counts of aggravated identity theft.

          Bullock allegedly participated in a scheme to defraud mostly elderly victims in the United States. Using false promises that the victims had won large lottery or sweepstakes prizes, members of the scheme fraudulently told victims that, in order to obtain their “winnings,” they would need to send money to pay for taxes, fees and other expenses. Hoping to collect the winnings, victims sent money to members of the scheme via wire transfer, money orders and cash. The money was sent through the United States mail, as well as through the Western Union and MoneyGram systems.

          Bullock allegedly received some of the fraudulently obtained money, and then sent a portion of it to his co-schemers, most of whom were in Jamaica.

          The investigation, so far, has uncovered 25 victims – one of whom was 88 years old – who sent nearly $200,000 to obtain their non-existent prizes.

          “Fraud schemes like the one charged in this indictment, which promise large rewards in exchange for ‘fees’ and ‘taxes,’ harm vulnerable members of our communities and potentially jeopardize the victims’ ability to make ends meet in retirement,” said United States Attorney Eileen M. Decker. “This defendant’s conduct was particularly egregious because he assisted criminals outside of the United States target elderly victims here.”

          “Foreign lottery and sweepstakes fraud cost Americans millions every year,” stated Los Angeles Postal Inspector in Charge Robert Wemyss. “When one family member is harmed, the impact can be felt by all. Losses can be monumental, and entire fortunes, inheritances and retirement security can be wiped-out. This arrest demonstrates the commitment of Postal Inspectors to protect our seniors from these unscrupulous scam artists.”

          An indictment contains allegations that a defendant has committed a crime.  Every defendant is presumed innocent until and unless proven guilty.

          The wire fraud and mail fraud charges each carry a statutory maximum penalty of 20 years in federal prison. The aggravated identity theft charges carry a mandatory consecutive sentence of two years in prison.

          The investigation in this case is being conducted by the United States Postal Inspection Service, which received substantial assistance from the Glendale Police Department.

TULSA, Okla.— The results of the June 2016 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.

The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.

Ryan Matthew Beck.Illegal Making of Destructive Devices and Possession of Unregistered Destructive Devices. Beck, 28, of Bartlesville, is charged with one count of making five destructive devices and one count of possession of destructive devices which had not been registered to him in the National Firearms Registration and Transfer Record. If convicted, Beck faces the statutory maximum penalty of 10 years in prison and a fine not to exceed $10,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Tulsa Police Department Bomb Squad, and Bartlesville Police Department are the investigating agencies.

Kevin Dewayne Burris.Failure to Surrender for Service of Sentence. Burris, 50, of Tulsa, is charged with failing to self-surrender at the designated federal correctional institute for service of his sentence following a conviction in the United States District Court for the Northern District of Oklahoma. If convicted, Burris faces a statutory maximum penalty of 10 years in prison and a $250,000 fine. The Federal Bureau of Investigation and United States Marshal Service are the investigating agencies.

Eric Daniel Cox. Theft of Mail. Cox, 36, of Tulsa, is charged with unlawfully removing a pill bottle and its contents from a package in the United States mails. If convicted, Cox faces the statutory maximum penalty of five years in prison and a fine of $250,000. The U.S. Postal Service-Office of Inspector General is the investigating agency.              

Michael Joseph Gray. Possession of Methamphetamine with Intent to Distribute. Gray, 29, of Tulsa, is charged with possession with intent to distribute methamphetamine. If convicted, Gray faces a statutory maximum penalty of 20 years in prison and a $1,000,000 fine. The Bureau of Indian Affairs and the Drug Enforcement Administration is the investigating agency.                

Kasey Dale Jackson.Theft From Indian Country in Excess of $1,000. Jackson, 29, of Pryor, a non-Indian, is charged with stealing personal property in excess of $1,000 from an Indian. If convicted, Jackson faces the statutory maximum penalty of five years in prison and a $250,000 fine. The Cherokee Nation Marshals Service and Federal Bureau of Investigation are the investigating agencies.                           

Kenyon James Miller.Distribution of Child Pornography and Possession of Child Pornography. Miller, 33, of Tulsa, is charged with distribution and possession of child pornography. If convicted, Miller faces the statutory minimum penalty of five years and maximum penalty of 20 years in prison and a $250,000 fine for the distribution of child pornography charge; and a statutory maximum penalty of 20 years in prison and a $250,000 fine for the possession of child pornography charge. The Federal Bureau of Investigation is the investigating agency.

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

Tommy Blue Bird, age 27, was indicted on May 24, 2016.  Blue Bird appeared before U.S. Magistrate Judge Daneta Wollmann on June 3, 2016, and pleaded not guilty to the Indictment. 

The maximum penalty upon conviction is life imprisonment and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund.  Restitution may also be ordered.

The charges relate to Blue Bird holding a female against her will and assaulting her at Pine Ridge.  The charges are merely an accusation and Blue Bird is presumed innocent until and unless proven guilty. 

The investigation is being conducted by the Bureau of Indian Affairs Justice Services and the Oglala Sioux Tribe Department of Public Safety.  Assistant U.S. Attorney Ben Patterson is prosecuting the case.

Blue Bird was remanded to the custody of the U.S. Marshals Service pending trial.

United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Sexual Exploitation of a Minor, Enticement of a Minor Using the Internet, and Receipt of Child Pornography.  

Shane Douglass Davison, age 35, was indicted on May 24, 2016, and appeared before U.S. Magistrate Judge Daneta Wollmann on June 3, 2016.  He pleaded not guilty to the Indictment.

The penalty upon conviction is a mandatory minimum of 15 years of imprisonment, a $250,000 fine, lifetime of supervised release, and a $5,000 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.

The charges relate to Davison using a cell phone and computer to engage in illegal sexual activity with minor females located in the Philippines. The charges are merely an accusation and Davison is presumed innocent until and unless proven guilty. 

The investigation is being conducted by the Internet Crimes Against Children Taskforce.  Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.

Davison was detained pending trial.  A trial date has been set for July 26, 2016.

U.S. Attorney Kenneth A. Polite announced that JOHN GIBSON, age 31, of Slidell, was charged today in a one-count Bill of Information with mail fraud.

According to court documents, GIBSON solicited funds from individuals by falsely representing that he would use their funds to establish investment accounts from 2008 to 2014.  During this time period, GIBSON defrauded his investors by diverting their investment funds for his own personal use and benefit.

GIBSON faces the maximum penalty of twenty years imprisonment and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim. 

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

U.S. Attorney Polite praised the work of the United States Postal Inspection Service in investigating this matter.  Assistant United States Attorney Sean Toomey is in charge of the prosecution.