Source: United States Attorneys General

Headline: Ellsworth AFB Man Sentenced for Possession of Child Pornography

United States Attorney Ron Parsons announced that an Ellsworth AFB, South Dakota, man convicted of Possession of Child Pornography was sentenced on February 12, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.

Ryan Davies, age 28, was sentenced to 18 months of imprisonment and 5 years of supervised release and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.

Davies was charged on June 14, 2016, after law enforcement received a CyberTipline Report from the National Center of Missing and Exploited Children that an individual was uploading naked images of juveniles to a cloud account. Law enforcement traced the account to Davies, who was found to have child pornography images on several electronic devices.

This case was investigated by the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.

Davies was immediately remanded to the custody of the United States Marshals Service.

Source: United States Attorneys General

Headline: Rapid City Man Sentenced for Illegally Possessing a Firearm

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FOR IMMEDIATE RELEASE

Friday, February 16, 2018

United States Attorney Ron Parsons announced that a Rapid City man convicted of Possession of a Firearm by a Prohibited Person was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.

Jacob Bryan, age 25, was sentenced on February 15, 2018, to time served and 3 years of supervised release and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.

Bryan was charged on March 21, 2017. The charge relates to Bryan being found in possession of a .38 caliber revolver and ammunition along with drug paraphernalia after a traffic stop near Kyle in February 2017.

This case was investigated by Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.

Component(s): 

Updated February 16, 2018

Source: United States Attorneys General

Headline: Broken Arrow Man Pleads Guilty To Sexual Exploitation of a Child

United States Attorney Trent Shores announced today that Noel McFadden, 71, of Broken Arrow, pleaded guilty before Chief United States District Judge Gregory K. Frizzell to one count of sexual exploitation of a child. Sentencing is set for May 16, 2018.

According to admissions made in connection with the plea agreement, in April 2017, McFadden knowingly coerced a minor under the age of 12 to take pictures of her genitals with a cellphone he had given her.  McFadden faces a mandatory minimum prison sentence of 15 years up to 30 years, and a fine of $250,000.  

United States Attorney Shores stated, “This prosecution is another example of law enforcement dedicating their professional lives to protecting those who cannot protect themselves.  Predators will be prosecuted, and most importantly, held accountable by my office.”

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 U.S. Attorneys’ Offices and 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.justice.gov/psc.

The charges are the result of an investigation by the Federal Bureau of Investigation and the Broken Arrow Police Department.  Assistant United States Attorney Jeffrey A. Gallant handled the prosecution of this case.

Source: United States Attorneys General

Headline: Drug Addict from Grant County, N.M., Charged with Violating Federal Firearms Laws

ALBUQUERQUE – This afternoon, a U.S. Magistrate Judge sitting in Las Cruces, N.M, ordered a resident of Grant County, N.M., who is charged with being a drug addict in possession of firearms and ammunition, detained pending trial based on findings that he poses a danger to the community.

Richard G. Dinwiddie, 57, of Cliff, N.M., was arrested on Feb. 6, 2018, and was charged with being an unlawful user of controlled substances in possession of firearms and ammunition in a criminal complaint filed on Feb. 7, 2018.  According to the complaint, federal and local law enforcement officers executed a federal search warrant at Dinwiddie’s residence on Feb. 5, 2018, and allegedly found approximately 6.2 grams of methamphetamine, 64.6 grams of marijuana, drug paraphernalia, six firearms, and approximately 1,000 rounds of assorted ammunition.  The complaint further alleges that Dinwiddie has been a methamphetamine user for approximately two years. 

Dinwiddie made his initial appearance in federal court on Feb. 12, 2018.  During this afternoon’s proceedings, Dinwiddie waived his right to a preliminary hearing on whether there was probable cause to support the charge in the criminal complaint.

If convicted of the charge in the criminal complaint, Dinwiddie faces a maximum penalty of ten years in federal prison.  Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.

This case was investigated by the Las Cruces office of the FBI, the New Mexico State Police, the Catron County Sheriff’s Office, and the Silver City Police Department.  Assistant U.S. Attorney Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.

Dinwiddie Complaint

Source: United States Attorneys General

Headline: Jury Convicts KC Man of Investment Fraud Scheme

KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was convicted by a federal trial jury today of a nearly $500,000 investment fraud scheme.

Ryan Scott Luscombe, 45, of Kansas City, was found guilty of all six counts contained in a June 6, 2017, federal indictment. Luscombe was convicted of three counts of wire fraud, two counts of mail fraud and one count of money laundering.

Luscombe solicited investments for his business, Five Star Trading Group, Inc., claiming to investors that he would utilize his expertise in stock trading to produce exorbitant returns. Instead, evidence introduced during the trial indicated that the entirety of investor funds, which totaled $483,482, was used by Luscombe on personal expenditures in 2013, 2014 and 2015, including the purchase of a 2010 BMW 750I and a trip to Bermuda.

To date, none of Luscombe’s investors have received funds from returns or their original investment.

During the course of the scheme to defraud victims of their investment money, Luscombe represented himself as a wealthy individual and a successful day trader capable of producing tremendous returns on investments.

Luscombe told investors he was creating a new business to manage over $50 million from three investors in Arizona. Luscombe claimed he would be the primary investment trader, but because the dollar amount to be invested would be too large for one person to handle, he recruited two people to assist in his trading endeavor. In exchange for a fee or investment in the business, Luscombe offered to train the additional individuals in his trading strategy. Eventually, Luscombe told investors he would allow a small number of friends and family to take advantage or “piggyback” off the investment strategy of the larger investors.

Luscombe’s stated investment strategy was to trade securities in the stock market based on the identification of trends in the upward or downward direction of the stock price. Luscombe told investors the risk was very low and minimal because he constantly monitored the stock price. Luscombe told investors he had been in the trading business for many years and had previously made millions of dollars.

Luscombe regularly provided positive projected investment return updates to the victims regarding their investments, and claimed investor money would be utilized for trading and generating profits for investors. As a direct result of these conversations, investors entrusted their money to him.

Investors never authorized Luscombe to spend investment money on personal expenditures. Luscombe never told investors their investment money would be spent on his personal expenditures. A salary for Luscombe was not authorized by investors. At the time of investment, Luscombe never informed investors that investment funds would be utilized to pay his salary. An analysis of financial activity revealed Luscombe’s spending of investor funds included the following:

(a) $83,088 in cash and cash equivalents;

(b) $78,542 in retail expenses;

(c) $67,990 in restaurants and entertainment;

(d) $52,925 in vehicle expenses;

(e) $45,940 in travel expenses;

(f) $41,058 in rent and utilities;

(g) $39,673 in investment firm losses, fees, and interest; and

(h) $21,144 in nutrition, fitness and beauty expenses.

Luscombe was not registered with the Financial Industry Regulatory Authority as a broker dealer or as an investment advisor representative. Luscombe and Five Star Trading Group were not registered with the Missouri Secretary of State – Securities Division.

Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for a little over two hours before returning the guilty verdicts to U.S. District Judge Roseann Ketchmark, ending a trial that began Monday, Feb. 12, 2018.

Under federal statutes, Luscombe is subject to a sentence of up to 20 years in federal prison without parole on each of the fraud counts, and sentence of up to 10 years in federal prison without parole for money laundering. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Brent Venneman and Special Assistant U.S. Attorney Courtney R. Pratten. It was investigated by the FBI.

Source: United States Attorneys General

Headline: Man Illegally Residing in Lexington Pleads Guilty to Illegally Possessing a Firearm and Fraudulent Social Security Cards

LEXINGTON, Ky.  — Jesus Yakamara Lopez-Villa, a Mexican national illegally residing in Lexington, was sentenced to 33 months in prison, after pleading guilty to being a prohibited person in possession of a firearm and to possession of fraudulent social security cards.

Law enforcement officers encountered Lopez-Villa in June 2017, during the execution of a state search warrant in Lexington.  Officers found Lopez-Villa in possession of three grams of cocaine, two fraudulent Social Security Cards, and a pistol.  Lopez-Villa, a citizen of Mexico without permission to enter the United States, has previously been deported on two separate occasions.     

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Byers, Assistant Field Office Director, U.S. Immigration and Customs Enforcement (ICE); and Ron Compton, Acting Chief of Police, Lexington Police Department, jointly announced the sentence today.

ICE and the Lexington Police Department conducted the investigation.  Assistant United States Attorney Lauren Tanner Bradley represented the United States.

This case was prosecuted as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone.   Attorney General Sessions has made turning the tide of rising violent crime in America a top priority.   As part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district, crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.   

Source: United States Attorneys General

Headline: Frankfort Man Sentenced for Trafficking Crack Cocaine

FRANKFORT, Ky.— Myron B. Moore, age 31, of Frankfort, Ky., was sentenced today to 18 years, 10 months (226 months) in prison, by United States District Court Judge Gregory F. Van Tatenhove, for possession with intent to distribute over 28 grams of crack cocaine.

Moore previously admitted that on April 20, 2017, Frankfort Police officers performed a traffic stop of his vehicle and found him in possession of 15 grams of crack cocaine.  Later the same day, law enforcement officers obtained a search warrant for Moore’s residence and discovered an additional 90 grams of crack cocaine and $51,780 in cash.  Moore admitted that he possessed the crack cocaine with intent to distribute it, and that the money discovered at his residence was proceeds from drug sales.  Moore also admitted that he had previously been convicted in the Franklin Circuit Court of drug trafficking.  Moore pleaded guilty to the charges in October of 2017.

Under federal law, Moore must serve 85 percent of his prison sentence: and upon release, he will be under the supervision of the United States Probation Office for 8 years.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Chris Evans, Special Agent in Charge, Drug Enforcement Administration; and Travis Ellis, Chief of the Frankfort Police Department, jointly announced the sentence today.

The investigation was conducted by the DEA and the Frankfort Police Department. 

Source: United States Attorneys General

Headline: Brent M. Lee Convicted By Federal Jury Of Bank Fraud and Related Crimes

PIKEVILLE, Ky. – Brent M. Lee, 41, of Pike County, Ky., was convicted by a federal jury yesterday, of conspiracy to commit bank fraud, two counts of aiding and abetting bank fraud, two counts of misapplication of bank moneys by a bank employee, and four counts of making unauthorized obligations by a bank employee.

The jury returned its verdict after a 3-day trial.  The evidence established that Lee, while a Market President for BB&T, conspired with Paul D. Fannin, 49, a residential developer from Van Lear, and Chelsea Stone, 25, Fannin’s daughter residing in Georgetown, to commit bank fraud.  Fannin, who was one of Lee’s major clients, had an outstanding loan with BB&T for $950,000, for developing an 8-unit townhome project called Stone Crest Properties.  When BB&T officials became concerned with the pace of progress on the project, compared with the amount of loan funds dispersed, BB&T downgraded the loan and required that Lee and Fannin follow certain protocols and procedures designed to keep a closer watch on the project before releasing more money to Fannin.  Rather than follow BB&T’s protocols, Brent Lee suggested to Fannin that they use Chelsea Stone to get a new loan from BB&T, the proceeds of which would go directly to Fannin.           

Additionally, in October 2014, Lee had Stone sign numerous documents to obtain a commercial loan from BB&T, in the amount of $100,000.  Lee misrepresented to BB&T that the loan was intended to expand Stone’s embroidery business; however, Stone owned no such business. The BB&T check issued for the loan was deposited into Paul Fannin’s bank account.  In November 2014, Lee had more documents prepared, which he also had Chelsea Stone sign, to get a new loan to pay off Stone’s outstanding $100,000 obligation.  Then, in January 2015, Lee had documents prepared, which he again had Chelsea Stone sign, to get a new loan that would pay off the November 2014 loan and pay out an additional $149,212.50.  Almost all of this money actually went to Fannin.  Lee then had this loan again extended, in July 2015, just two months before he resigned from BB&T.  Of the $250,000 gained through this scheme, Fannin spent at least $120,000 at casinos in the area. BB&T lost more than $248,000 as a result of Lee’s fraudulent conduct.

Prior to trial, Fannin had pleaded guilty to conspiracy to commit bank fraud.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Joseph Moriarty, Federal Deposit Insurance Corporation, Office of Inspector General; and Amy Hess, Special Agent in Charge, Federal Bureau of Investigation, jointly announced the verdict.  The United States was represented at trial by Assistant United States Attorneys Kathryn Anderson and Paul McCaffrey.

Lee is currently scheduled to appear for sentencing before Chief Judge Karen K. Caldwell, in Pikeville, on May 31, 2018 at 12:30.  Lee faces a maximum penalty of 30 years in prison.  However, his sentence will be imposed by the court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.

Source: United States Attorneys General

Headline: Former Massage Therapist Sentenced to Five Years in Prison for Series of Sex Offenses Involving Clients

            WASHINGTON – Habtamu Gebreslassie, 24, a former massage therapist, was sentenced today to five years in prison for a series of sex offenses involving clients at two massage establishments in Northwest Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

            Gebreslassie, of Silver Spring, Md., pled guilty in December 2017, in the Superior Court of the District of Columbia, to first-degree sexual abuse of a patient or client, attempted first-degree sexual abuse of a patient or client, and misdemeanor sexual abuse. The plea, which was contingent upon the Court’s approval, called for an agreed-upon prison sentence of 19 to 60 months, to be followed by three years of supervised release. Additionally, upon completion of his prison term, Gebreslassie will be required to register as a sex offender for the rest of his life. The Honorable Lynn Leibovitz accepted the plea and sentenced the defendant accordingly.

            According to a proffer of facts submitted at the plea hearing, all three victims were women who were getting massages from the defendant, who was licensed to practice massage therapy in the District of Columbia.

            The first incident took place on June 21, 2017, at a massage establishment in the Dupont Circle area. That day, Gebreslassie engageed in unwanted sexual contact with a client. The second incident happened on Aug. 28, 2017, at another establishment in the Tenleytown area; there, Gebreslassie attempted to engage in a sexual act with a client. Finally, on Sept. 17, 2017, also at the Tenleytown location, Gebreslassie sexually abused a client.

            Following the Sept. 17 incident, the victim contacted the Metropolitan Police Department. Gebreslassie was arrested later that day and has remained in custody ever since.

            In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department’s Second District and Sexual Assault Unit. They also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Victim/Witness Advocate Tracy Hawkins, Paralegal Specialist Tiffany Jones, and Assistant U.S. Attorneys Jocelyn Bond and J. Matt Williams, who investigated and prosecuted the case.

Source: United States Attorneys General

Headline: Ohio Man Pleads Guilty in Scheme to Distribute Heroin in Western Pennsylvania

PITTSBURGH – An Ohio resident pleaded guilty in federal court to a count of conspiracy to distribute heroin, United States Attorney Scott W. Brady announced today.

Christopher Smith, 21, of East Liverpool, Ohio, pleaded guilty to one count before United States District Judge David S. Cercone.

In connection with the guilty plea, the court was advised that Smith conspired with others to possess with intent to distribute and to distribute kilogram quantities of heroin, which was supplied from Mexico to Ohio and then later to Aliquippa in the Western District of Pennsylvania.

Judge Cercone scheduled sentencing for June 22, 2018. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Pending sentencing, the court continued the defendant’s bond.

Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.

The Drug Enforcement Administration, Hopewell Township Police Department, Beaver County District Attorney’s Office, Aliquippa Police Department, and the Beaver County Sheriff’s Office conducted the investigation that led to the prosecution of Christopher Smith.