Source: United States Attorneys General

Headline: Florida Man Sentenced In Penny Stock Scheme

CONTACT:      Barbara Burns
PHONE:         (716) 843-5817
FAX:            (716) 551-3051

BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that James Palladino, 54, of Delray Beach, Florida, who was convicted of conspiracy to engage in monetary transactions, was sentenced by Senior U.S. District Judge William M. Skretny to six months in prison and ordered to forfeit $175,000.

Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that between February and June of 2011, the defendant and other co-conspirators, participated in a scheme to acquire, manipulate, and trade publicly available stocks of companies with low stock prices (known as “penny stocks”). During the scheme, the defendant and others, directed co-conspirators to issue newsletters containing fictitious and misleading information regarding a targeted stock, which was done in an effort to manipulate the length and intensity of the penny stock promotion scheme. During the scheme, Palladino and others utilized personal brokerage accounts and bank and brokerage accounts in the names of entities they owned and controlled, to fund, trade, and manipulate the price of penny stocks.

During the scheme, the defendant and others made payments totaling $175,000 for the fraudulent stock promotions knowing that the funds used to make the payments constituted criminally derived proceeds from wire fraud activities.

The sentencing is the result of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office.

Source: United States Attorneys General

Headline: Weare Man Sentenced To 18 Months In Prison For Drug Trafficking

          CONCORD, N.H. – Kenneth Bailey, 53, of Weare, New Hampshire was sentenced in federal court to serve 18 months in prison for drug trafficking, Acting United States Attorney John J. Farley announced today.  

          According to court documents and statements made in court, on five occasions in 2013 and once in 2014, a cooperating individual purchased methamphetamine or a combination of cocaine and methamphetamine from Bailey at his residence.       

          Bailey pleaded guilty to six counts of distributing controlled substances on October 25, 2017.  In addition to his prison sentence, the defendant was fined $1,000 and will be on supervised release for three years.

          “The law enforcement community is united in the effort to stop the distribution of dangerous drugs in New Hampshire,” said Acting U.S. Attorney Farley.  “We will continue to identify and prosecute drug traffickers in order to protect the safety of our community.” 

           “Mr. Bailey will now pay the price for distributing dangerous drugs that pose a serious threat to our community,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “Together, with our law enforcement partners, the FBI New Hampshire Safe Streets Gang Task Force will continue to do everything we can to crack down on illegal drug distributors and the violence that is associated with them.”

          This matter was investigated by the FBI New Hampshire Safe Streets Gang Task Force, which is comprised of the FBI, the New Hampshire State Police, New Hampshire Probation and Parole, and the Police Departments of Hudson, Manchester, and Nashua.  The case was prosecuted by Assistant U.S. Attorney Shane B. Kelbley.

          This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF).  The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.  

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Source: United States Attorneys General

Headline: Pineville man sentenced to 30 months in prison for cashing counterfeit checks

ALEXANDRIA, La. – United States Attorney Alexander C. Van Hook announced that a Pineville man was sentenced Wednesday to 30 months in prison for counterfeiting and cashing checks.

Deshan Spivey, 31, of Pineville, La., who is originally from Ruston, La., was sentenced by U.S. District Judge Dee D. Drell to one count of making and possessing counterfeit securities of political subdivisions of the State of Louisiana. He was also sentenced to two years of supervised release and was ordered to pay $28,410 restitution. According to the October 30, 2017 guilty plea, Spivey used counterfeit checks that he manufactured to draw funds from the Rapides Parish School Board and Natchitoches Parish School Board in November 2015 and January 2017. Spivey cashed the checks at various retail outlets in the central Louisiana area.

 The U.S. Secret Service conducted the investigation.  Assistant U.S. Attorney Earl M. Campbell is prosecuting the case.

Source: United States Attorneys General

Headline: Beaumont man sentenced to 10 years in prison for kidnapping girls after theft in Sulphur

LAFAYETTE, La. – United States Attorney Alexander C. Van Hook announced that a Beaumont man was sentenced Tuesday to 120 months in prison for kidnapping two girls after stealing the truck they were in.

Henry Dwight Moore, 23, of Beaumont, Texas, was sentenced by U.S. District Judge Jay C. Zainey on one count of kidnapping. He was also sentenced to five years of supervised release. According to the October 11, 2017 guilty plea, Moore drove a black truck into a Lowe’s parking lot in Sulphur, La., on December 13, 2015. He stole a customer’s purse who had walked away from it to return a shopping cart.  A bystander saw Moore take the purse, and the bystander jumped into the back of Moore’s truck as he drove away. The truck’s engine died at one point, and the bystander attempted to confront him.  Moore got the engine started again and sped off, leaving the bystander in the truck bed. Eventually Moore stopped and the bystander got out. Moore then continued westbound on Interstate 10 in the rain. He lost control and struck the side of a Toyota Tundra truck.  After the accident, Moore’s truck died again, and he and the Tundra pulled over to the side of the road.  After the Tundra owner exited the truck and walked to the passenger side to inspect the damage, Moore jumped into the driver’s seat and drove off.  Inside the Tundra truck were the owner’s daughters ages 5 and 7.  Moore told the girls he was going to drop them off at a police station but instead abandoned the car and the girls on the side of the road in Orange, Texas. The oldest girl located her father’s cell phone and called 911 for help.

The FBI conducted the investigation.  Assistant U.S. Attorney Jamilla A. Bynog prosecuted the case.

Source: United States Attorneys General

Headline: Jennings man sentenced to 18 months in prison for posting nude photos online of female victim

LAFAYETTE, La. – United States Attorney Alexander C. Van Hook announced that a Jennings man was sentenced Tuesday to 18 months in prison for posting nude photos online and threatening to post more photos of a female victim.

Christopher Redeaux, 21, of Jennings, La., was sentenced by U.S. District Judge Jay C. Zainey for one count of interstate transmission of an extortionate communication.  He was also sentenced to one year of supervised release.  According to the October 11, 2018 guilty plea, Redeaux obtained nude pictures of a woman and threatened to publish them on the internet if the woman did not provide more photos.  Redeaux posted some of the photos to Facebook using a fictitious account and sent a friend request to the victim and her friends.  Redeaux harassed the victim through an online account and telephone calls.  The victim filed a complaint with McNeese State University Police on December 2, 2015, and Redeaux was arrested on several state charges including cyberstalking, sexual battery and cyberbullying. Redeaux’s cell phone was searched and a folder containing the nude photos of the victim were found.

The FBI, McNeese State University Police and the Greater Houston Regional Computer Forensics Laboratory conducted the investigation.  Assistant U.S. Attorneys Jamilla A. Bynog and T. Forrest Phillips prosecuted the case.

Source: United States Attorneys General

Headline: Ragley woman collects more than $75,000 of deceased mother-in-law’s VA benefits

LAKE CHARLES, La. – United States Attorney Alexander C. Van Hook announced that a Ragley woman pleaded guilty last week to taking more than $75,000 of her deceased mother-in-law’s benefits.

Vanneta Hudspeth, 57, of Ragley, La., pleaded guilty January 25 before U.S. Magistrate Judge Kathleen Kay to one count of theft of government funds. According to the guilty plea, Hudspeth continued to receive her deceased mother-in-law’s Veterans Affairs benefits from March 2010 to June 2015 that she was not entitled to. Hudspeth made false statements on the mail-in questionnaire in 2014, stating that her mother-in-law was still living and entitled to receive benefits.  Hudspeth collected $75,477.90 in VA benefits after her mother-in-law’s death in March 2010.

Hudspeth faces 10 years in prison, three years of supervised release and a $250,000 fine. The court set sentencing for April 17, 2018.

Veterans Affairs-Office of Inspector General conducted the investigation.  Assistant U.S. Attorney Robert F. Moore is prosecuting the case.

Source: United States Attorneys General

Headline: Contractor Sentenced To 5 Years Probation For Making False Statements And Theft Of Government Funds

U.S. Attorney Duane A. Evans announced that MICHAEL SPEARS, age 53, of New Orleans, was sentenced to five (5) years probation by the Honorable U.S. District Judge Martin L.C. Feldman today for making false statements in violation of 18 U.S.C. § 1001 and theft of government funds in violation of 18 USC § 641.

According to court documents, SPEARS was a contractor for homeowners eligible to receive grants funded by FEMA through the Home Mitigation Grant Program, also known as the HMGP. These grants would allow homeowners to elevate their houses to prevent catastrophic damage from future natural disasters. In  2011  and  2012,  each  elevation  grant  from  HMGP  was  worth  up  to $100,000.00 with contractors and homeowners being entitled to an advanced payment of 80% of the grant prior to a contractor doing any elevation work. The HMGP expected homeowners receiving HMGP grants to commit their $30,000.00 Road Home elevation grant to the total cost of the elevation.

In 2011, SPEARS signed contracts with multiple homeowners in the Eastern District of Louisiana to elevate their homes through the HMGP.  For many of these contracts, SPEARS received advanced payments from the HMGP prior to starting the elevation work. For at least two contracts, the homeowners gave him Road Home elevation funds prior to HGMP approving their grants or giving them an advanced payment. 

However, as of 2013, SPEARS had still failed to do any work on at least 3 properties for which he had received $118,000.00 in federal funds, including the two properties for which he had received the Road Home elevation funds as down payment.  Despite demands, SPEARS has not returned the funds to the government or the homeowners.

Source: United States Attorneys General

Headline: Two Men Illegally Residing in Lexington Convicted of Drug Trafficking, Firearms, and Immigration Offenses

LEXINGTON, Ky. – Two Mexican nationals, illegally residing in Lexington, were convicted by a federal jury yesterday, following a two-day trial in U.S. District Court.  Fernando Rafael Lara Salas, who had previously used the alias of Jesus Ruiz Vega, age 40, and Jorge Macias Pedroza, age 30, were each convicted of conspiracy to distribute more than five kilograms of cocaine, possession with intent to distribute multiple controlled substances, including fentanyl, methamphetamine, and tramadol, as well as being an alien in possession of a firearm.  In addition, Lara Salas was also convicted of possession with intent to distribute more than five kilograms of cocaine, possession of a firearm in furtherance of a drug-trafficking crime, possession of a firearm as a convicted felon, and unlawfully entering the United States after previously being deported for a felony drug possession offense.

The joint investigation by federal and state law enforcement into the drug trafficking activities of both defendants began in August 2016 and culminated with the execution of search warrants, at the homes of both defendants and a cargo trailer used by both men.  The searches resulted in the seizure of 6 kilograms of cocaine, 4 kilograms of tramadol, residual amounts of fentanyl, more than 50 grams of methamphetamine, and two 9 mm firearms.  Lara Salas also had approximately $110,000 in U.S. currency seized from his residence.  Lara Salas was illegally present in the United States at the time of his arrest, due to his prior deportation resulting from a previous conviction on a federal drug possession charge.  Macias Pedroza was also illegally present in the United States at the time of his arrest.  The investigation was a cooperative effort led by investigators with the Drug Enforcement Administration (DEA); the Department of Homeland Security, Immigration and Customs Enforcement (ICE); and the Lexington Police Department.

“The defendants in this case were dealing in massive quantities of dangerous drugs,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky.  “The number of overdose deaths in our community continues to rise, and the quantities of illegal drugs involved in this criminal conspiracy were placing many lives in danger.  Without the outstanding work of our law enforcements partners, this prosecution would not have been possible.  Their efforts removed these drugs from our streets, made our community safer, and saved lives.  Prosecuting those who deal in this scourge to our community will continue to be a core priority of our Office.” 

United States Attorney Duncan; Darrell Christopher Evans, Special Agent in Charge, DEA Louisville; Shawn Byers, Assistant Field Office Director, ICE; and Ron Compton, Acting Chief of Police, Lexington-Fayette County Division of Police, jointly announced the jury’s verdict.

The sentencing hearings for both defendants are currently scheduled for May 4, 2018, at the federal courthouse in Lexington.  Lara Salas faces 25 years to life in prison and Pedroza faces 10 years to life.  The U.S. District Court will consider the U.S. Sentencing Guidelines and the federal statutes before imposing sentence.

Source: United States Attorneys General

Headline: Convicted felon sentenced to 10 years in federal court on ammunition charge

Three prior felonies result in an Evansville man sentenced for illegal possession of ammunition

PRESS RELEASE

Evansville –United States Attorney Josh J. Minkler announced today that an Evansville man was sentenced for possessing ammunition as a convicted felon after being arrested by the Evansville Police Department during a domestic disturbance in 2016. Jason E. Galloway, 40, was sentenced to 120 months (10 years) by U.S. District Judge Richard L. Young after pleading guilty to being a felon in possession of ammunition.  

“Convicted felons have no right to carry firearms or ammunition in the state of Indiana,” said Minkler. “If someone chooses to willfully violate federal law, they will face serious consequences.”

According to a police report generated by the Evansville Police Department, police were called to the 1100 block of North Main Street on January 21, 2016, on a reported domestic violence incident. When officers arrived, they spoke with Galloway’s former wife who stated Galloway had waived a gun around the house, threatened to shoot her, and assaulted her and her minor daughter. Officers found a stolen .22 caliber revolver in the house and a cylinder loaded with eight rounds of ammunition. Galloway left the home before officers arrived, but officers found him behind a nearby gas station with live ammunition in his pocket and placed him under arrest.

Galloway cannot legally possess a firearm or ammunition because he has three felony convictions. The convictions include:

• Manufacturing methamphetamine, Henderson County, Kentucky, in 2000
• Criminal recklessness resulting in serious bodily injury, in Posey County, Indiana, in 2010
• Battery, Vanderburgh County, Indiana, in 2013

This case was investigated by the Evansville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

“ATF is committed to combating gun violence in our communities,” said Trevor Velinor, ATF Special Agent in Charge for the Columbus Field Division. “We will continue to work with our law enforcement partners to make Evansville safer for all residents.”

“This should serve as another example to those who wish to create havoc in our community that justice will in turn wreak havoc on their lives,” said Evansville Police Chief Billy Bolin.

According to Assistant United States Attorney Kyle M. Sawa, who is prosecuting this case for the government, Galloway must also pay a $1,000 fine and serve three years of supervised release following his sentence.

In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute individuals engaged firearm violations in the District’s most violent areas. See United States Attorney’s Office, Southern District of Indiana Strategic Plan  Section 2.2

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Source: United States Attorneys General

Headline: Elkhart Man Sentenced For Receipt Of Child Pornography

SOUTH BEND – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Donald J. Meachum, age 21, of Elkhart, Indiana was sentenced before District Court Judge Jon E. DeGuilio for one count of receipt of child pornography. 

Meachum was sentenced to 60 months imprisonment and 5 years of supervised release. 

According to documents in this case, from December 2013 to December 2016, Meachum used his cellular phone to download images and videos of child pornography from the internet.  Some of these videos or images involved minors under the age of 12. 

This case was investigated by the Federal Bureau of Investigation with the assistance of the St. Joseph County Cybercrimes Unit. This case was handled by Assistant U.S. Attorney John M. Maciejczyk.

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