Northern District of Oklahoma

TULSA, Okla. — Two convenience store owners were sentenced today for conspiring to distribute and distributing more than 127 kilograms of synthetic cannabinoids, which were marketed by names such as Diablo, Joker, Kush, and Scooby Snax, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.

United States District Court Judge Claire V. Eagan sentenced Iqbal Makkar, 37, of Bentonville, Arkansas, to 97 months, and Gaurav Sehgal, 37, of Grove, Oklahoma, to 84 months in prison. Following a five day trial, a federal jury convicted the defendants of conspiracy to distribute controlled drug analogues, possession of Schedule 1 controlled substance analogue with intent to distribute, maintaining drug-involved premises, and money laundering. A federal grand jury charged the defendants on November 11, 2013.

From November 2011 to January 2013, Makkar and Sehgal operated the “Gitter Done Station” convenience store in Grove, Oklahoma, for the purpose of storing and distributing the controlled substance analogue known as XLR11. The charges included depositing funds from the illegal sales and distributions of controlled substance analogues into a checking account at the Corner Stone Bank in Southwest, Missouri.

XLR11 is a synthetic substance typically sprayed on inert plant material. XLR11 has similar or greater pharmacological effects as THC, a psychoactive ingredient in marijuana. Some side effects of XLR11 include paranoia, elevated heart rates, seizures, nausea, and panic attacks.  The use of XLR11 and other synthetic cannabinoids has resulted in emergency room visits, impaired driving, and suicide attempts.

As part of the sentencing, U.S. District Court Judge Eagan entered an order forfeiting the interest of the defendants in two convenience stores valued at over $1,000,000, two residences and four other real properties valued at $1,754,535, proceeds of financial accounts and seized currency totaling over $721,000 and a Range Rover vehicle.  Judge Eagan also entered a joint and several criminal forfeiture money judgment against defendants in the amount of $2,584,981.

In addition, the defendants were ordered to pay more than $6,000 in restitution to a victim who was hospitalized as a result of smoking synthetic cannabinoid bought at the convenience store.

The case was investigated by the Oklahoma District 13 Drug Task Force, Drug Enforcement Administration, and the Internal Revenue Service. Assistant U.S. Attorneys Clinton Johnson, Trent Shores, Shannon Cozzoni, and Catherine Depew prosecuted on behalf of the United States.

The Controlled Substances Act was amended in 1986 and provides for controlled substance analogues, to the extent that they are intended for human consumption, to be treated as Schedule I controlled substances for the purposes of criminal prosecution.

U.S. v. Makkar and Sehgal

TULSA, Okla. — The second leader of the computer hacking group Team Digi7al was sentenced today for hacking the United States Navy, the National Geospatial-Intelligence Agency, and over 50 public and private computer systems, announced Danny C. Williams, U.S. Attorney for the Northern District of Oklahoma.

Nicholas Paul Knight, 27, of Chantilly, Virginia, was sentenced by U.S. District Judge James H. Payne to 24 months in prison. At the time of the hacking attacks Knight was a U.S. Navy Nuclear Systems Administrator aboard the USS Harry S. Truman. Knight pleaded guilty to the single-count information on May 5, 2014. Co-defendant Daniel Krueger, 20, of Dix, Illinois, was sentenced to two-years in prison on October 22, 2014.

“Computer hacking presents a significant risk to national security. As a service member in the United States Navy, the defendant knowingly breached his oath of enlistment and became an insider threat,” said U.S. Attorney Williams. “We will continue to work with our law enforcement partners to find cyber-criminals and prosecute them to the full extent of the law.”

According to court documents, in June 2012, the Naval Criminal Investigative Service (NCIS) detected a breach of the U.S. Navy’s Smart Web Move database, which stored personal records, including Social Security numbers, names, and dates of birth, for approximately 222,000 service members. The servers that stored these records were located in Tulsa. At the time of the hacking attacks, Knight, Krueger, and other Team Digi7al conspirators posted links to the stolen information on Team Digi7al’s Twitter account to make the private information available to the public.

In early 2013, Knight was administratively separated from the U.S. Navy after he was caught hacking into a computer system while aboard the USS Harry S. Truman during a sting operation conducted by the NCIS.

The case was investigated by the NCIS Atlantic Cyber Operations office in Norfolk, Virginia, with the cooperation and assistance of the DCIS Cyber Field Office, and other federal, state, and local agencies. Assistant U.S. Attorney Joel-lyn A. McCormick and Gary L. Davis II prosecuted on behalf of the United States.

TULSA, Okla. – Eleven alleged gang members and associates of the Universal Aryan Brotherhood (UAB) have been charged for their alleged roles in conspiring to participate in a racketeering enterprise, drug conspiracy, kidnapping, and maiming a person, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma.

The indictment, returned by a federal grand jury on November 5, 2014, was unsealed on November 10, 2014. The defendants charged in the indictment are Anthony Ramon Hall, 39; Ronnie Dean Haskins, 41; Aaron Clay King, 31; Matthew Brian Wagner, 32; Richard Allen Roberts, 30; Robert Allen Paul Bryan, 40; Rodney Lee Broomhall, 37; William Benton Williams, 41; Kristin Michelle Bright, 31; Carl Matthew Smith, 36; and Timothy Duane Buck, 23. All defendants are from Oklahoma.

According to court documents, the UAB is a “white only,” prison-based gang with members operating inside and outside of state prisons throughout Oklahoma. The UAB is a criminal organization whose members and associates engage in drug distribution, money laundering, and acts of violence involving kidnapping, assault, and arson throughout Oklahoma. The gang was established in 1993 within Oklahoma Department of Corrections penitentiaries and modeled itself after the principles and ideology of the Aryan Brotherhood, a California-based prison gang that formed during the 1960’s.

As alleged in the indictment, the defendants conspired in racketeering activities to advance the UAB enterprise. Racketeering activities included possessing and selling 500 grams or more of methamphetamine, and the use of threats, intimidation, violence, and destruction.

The indictment further alleges that on May 2, 2013, Haskins, King, Bryan, Broomhall, and Bright kidnapped and maimed a person for the purpose of maintaining and increasing their position within the UAB gang. Following a direct order, the defendants held down a UAB member and placed a heated knife on his neck to burn off the UAB patch-tattoo because it was believed that the member did not supply and distribute drugs to the UAB enterprise.

If convicted, the racketeering, drug conspiracy, and kidnapping charges each carry a statutory maximum penalty of life in prison and a fine of $250,000. The maiming charge carries a statutory maximum penalty of 30 years in prison and a fine of not more than $250,000.

The charges stem from an investigation by the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI); Tulsa Police Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; Internal Revenue Service-Criminal Investigations Division; Tulsa County Sheriff’s Office; and the Oklahoma Department of Corrections. The case is being prosecuted by John Hanley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Allen Litchfield and Jan Reincke of the Northern District of Oklahoma.

An indictment is merely a charge and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

U.S. v. Hall, et al.

TULSA, Okla. – United States Attorney Danny C. Williams Sr. announced today that the Northern District of Oklahoma collected $2,089,219.07 in criminal and civil actions in Fiscal Year 2014. Of this amount, $891,527.25 was collected in criminal actions and $1,197,691.82 was collected in civil actionsAdditionally, the Northern District of Oklahoma worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,348.15 in cases pursued jointly with these offices.

Furthermore, the Northern District of Oklahoma, working with partner agencies and divisions, collected$1,106,290in asset forfeiture actions in FY 2014. Additionally, criminal forfeiture money judgments were entered totaling $21,066,698 representing proceeds from defendants’ offenses of conviction. During this fiscal year, forfeited assets deposited into the Department of Justice Assets Forfeiture Fund were used to restore $3,648,140 to crime victims and $812,213 was used for a variety of law enforcement purposes.

Attorney General Eric Holder announced today that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.

“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy.  And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”

"The Northern District’s commitment to the recovery of funds has yielded nearly $2.1 million in litigated matters and $3.6 million in asset forfeitures for federal crime victims,” said U.S. Attorney Williams. “This total is a reflection of the office’s priority and the work of dedicated collections staff in the Financial Litigation Unit and Asset Forfeiture division. We will continue to ensure justice is served and hold accountable those who seek to profit from their illegal activities.”

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.  The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.  While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.

Press Release: Department of Justice Collects More Than $24 Billion in Civil and Criminal Cases in Fiscal Year 2014

The full video of the Attorney General’s message is available at http://www.justice.gov/agwa.php.

TULSA, Okla. — A Colorado man was sentenced today by United States District Court Judge John E. Dowdell to serve 84 months in prison and three years of supervised release for charges related to stealing and selling millions of dollars’ worth of Verizon Communications telecommunications equipment, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
                                                    
On August 13, 2014, Jesse Michael Greenwald, 59, of Colorado, pleaded guilty to conspiring to commit money laundering. Other defendants charged in the same Indictment were Scott Gollan, 26, and Michael Greenwald, 25, both of Bastrop, Texas, and James Pennoyer, 49, of Tulsa. Michael Greenwald, Gollan, and Pennoyer have also pleaded guilty to charges arising from the thefts from Verizon and are awaiting sentencing.

According to court documents filed in the case, from July 2009 to May 2014, Pennoyer was a contract employee at the Verizon Communications warehouse in Tulsa, and aided the other defendants in stealing telecommunications equipment from the warehouse. The defendants transported the stolen equipment to Colorado Springs, Colorado, and stored it in a facility to be sold at a later date. Much of the equipment was sold to a company in North Carolina, which made substantial payments to Greenwald and his co-conspirators. The conspirators, including Greenwald, then used the funds to engage in illegal monetary transactions of more than $10,000 each.

In addition to the prison sentence, United States District Judge Dowdell ordered Jesse Greenwald to pay restitution in the amount of $4,419,125.

The case was investigated by the Federal Bureau of Investigation and the IRS-Criminal Investigation. The case was prosecuted by Assistant United States Attorneys Jeffrey A. Gallant and Kevin C. Leitch on behalf of the United States.

U.S. v. Jesse Michael Greenwald

TULSA, Okla. — A Tulsa man pleaded guilty today before United States District Court Judge Claire V. Eagan to aiming the beam of a laser pointer in the flight path of a Tulsa Police Department helicopter, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.

At the change of plea hearing, Carl Don Floyd, 43, of Tulsa, admitted that on February 15, 2014, he aimed a laser pointer three times in the flight path of a Tulsa Police Department helicopter that was travelling near his residence. Floyd was charged by a grand jury on March 5, 2014.

According to court documents, the first laser struck the front-left side of the aircraft. As the crew flew the helicopter towards the source of the laser a second laser struck an officer in both eyes. After the third laser strike, the crew was able to determine the source location. As a result of the laser strikes, the flight officer experienced flash blindness.

Sentencing is scheduled on February 20, 2015. Floyd faces the statutory maximum penalty of five years in prison and a fine up to $250,000.

In February 2012, President Obama signed into law a statute making it a federal crime to knowingly aim the beam of a laser pointer at or in the flight path of an aircraft. According to the Federal Aviation Administration, there were 3,960 reports of laser strikes in the United States in 2013.

Floyd was charged with the crime following a joint investigation conducted by the Tulsa Police Department and Federal Bureau of Investigation. Assistant United States Attorney Joel-lyn A. McCormick prosecuted the case on behalf of the United States.

U.S. v. Carl Don Floyd

TULSA, Okla. — Following a five-day trial, a Federal jury convicted Francis Harry Dishmon, 51, of Tulsa, of attempted robbery of the IBC Bank in Miami, Oklahoma, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma.

On April 8, 2014, the Government filed a two-count Indictment which charged Dishmon with attempted bank robbery and killing a person while attempting to avoid apprehension.

The charging statute provides a statutory maximum penalty of 20 years in prison and a $250,000 fine for attempted bank robbery. The case was tried before United States District Judge John E. Dowdell and he will sentence Dishmon on the attempted robbery conviction on March 9, 2015.

The Government alleged in Count 2 of the Indictment that on August 28, 2013, after attempting to rob the IBC Bank, Dishmon caused a deadly crash while attempting to avoid law enforcement apprehension. The jury could not reach a verdict on Count 2 and it will be retried at a later date. The verdict was received by United States District Chief Judge Gregory K. Frizzell.

The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Jan Reincke and Gary L. Davis II on behalf of the United States.

U.S. v. Francis Harry Dishmon

TULSA, Okla. — The results of the November 2014 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.

Juan Carlos Andrado-Morillo. Alien in the United States After Deportation. Andrado-Morillo, 41, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in November 2012 near Harlingen, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigative agency.

Mary Elizabeth Beaty. Theft of Government Property. Beaty, 57, of Tulsa, is charged with stealing approximately $49,778.93 in Social Security Funds from December 2009 to August 2012. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. Upon conviction, a criminal forfeiture money judgment would also be entered in the amount of $49,778.93. The Social Security Administration-Office of Inspector General is the investigative agency.

Tony D’Marco Cato. Felon in Possession of a Firearm and Ammunition, Possession of Marijuana with Intent to Distribute, and Possessing a Firearm in Furtherance of a Drug Trafficking Crime. Cato, 31, of Tulsa, is charged with possessing a .380 caliber pistol and ammunition after prior felony convictions. Cato is also charged with possessing marijuana with intent to distribute and possessing a firearm in furtherance of a drug trafficking crime. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine for being a felon in possession of a firearm and ammunition; up to five years in prison and a $250,000 fine for possession of marijuana with intent to distribute; and not less than five years in prison and up to life in prison, to run consecutively with any other term of imprisonment, and a $250,000 fine for possessing a firearm in furtherance of a drug trafficking crime. Upon conviction, Cato would also forfeit the pistol and ammunition. The Oklahoma Bureau of Narcotics and Dangerous Drugs is the investigative agency.

Juan Pablo Charre and Alejandro Cabrera Charre. Drug Conspiracy and Possession of Methamphetamine with Intent to Distribute. Juan Charre, 34, and Alejandro Charre, 23, both of Austin, Texas, are charged with conspiracy and possessing 500 grams or more of methamphetamine with intent to distribute. If convicted, the statutory maximum penalty for drug conspiracy and possession of methamphetamine with intent to distribute is not less than 10 years and up to life in prison, and a $10,000,000 fine. Upon conviction, a criminal forfeiture money judgment would also be entered in the amount of $46,000 and seized currency would be forfeited. The Drug Enforcement Administration and the Tulsa Police Department are the investigative agencies.

Isaias Gonzalez-Rosales. Alien in the United States After Deportation. Gonzalez-Rosales, 28, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in September 2011 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigative agency.

Kari Ann Hunt. Embezzle, Steal, Purloin and Knowingly Convert Public Monies. Hunt, 39, of Ramona, Oklahoma, is charged with stealing on a recurring basis from April to July 2014, money and objects of value in excess of $1,000 belonging to the United States Postal Service. If convicted, the statutory maximum penalty would be not more than 10 years in prison and a $250,000 fine. The Office of Inspector General U.S. Postal Service is the investigative agency.

Teri Dean Maloney. Theft of Government Property. Maloney, 51, of Wyandotte, Oklahoma, is charged with stealing approximately $49,913 in Social Security Funds from January 2010 to June 2013. If convicted, the statutory maximum penalty is 10 years in prison and a fine up to $250,000. Upon conviction, a criminal forfeiture money judgment would also be entered in the amount of $49,913. The Social Security Administration-Office of Inspector General is the investigative agency.

Jesus Parra-Lopez. Alien in the United States After Deportation. Parra-Lopez, 37, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in August 2013 near Laredo, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigative agency.

Andrew Scott Pierson. Felon in Possession of Firearms. Pierson, 39, of Jay, Oklahoma, is charged with possessing firearms after prior felony convictions. If convicted, the statutory maximum sentence is not more than 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigative agency.

Timothy Jason Sumner. Failure to Register as a Sex Offender. Sumner, 30, is charged with failing to register as a sex offender as required under the Sex Offender Registration and Notification Act after a 2011 conviction. If convicted, the maximum statutory penalty would be 10 years in prison and a $250,000 fine. The U.S. Marshals Service is the investigative agency.

Ronald Dean Tiger. Failure to Register as a Sex Offender. Tiger, 47, is charged with failing to register as a sex offender as required under the Sex Offender Registration and Notification Act after a 2001 conviction. If convicted, the maximum statutory penalty would be 10 years in prison and a $250,000 fine. The U.S. Marshals Service is the investigative agency.

Tayler Marie Marvina Warren. Possession of Methamphetamine with Intent to Distribute and Possession of Firearms in Furtherance of a Drug Trafficking Crime. Warren, 23, of Vinita, Oklahoma, is charged with two counts of possessing methamphetamine with intent to distribute and two counts of possessing a firearm in furtherance of a drug trafficking crime. If convicted for possession of methamphetamine with intent to distribute, Warren faces a statutory maximum penalty of up to 20 years in prison and a $1,000,000 fine. The statutory minimum sentence for possession of firearm in furtherance of a drug trafficking crime is not less than 5 years in prison and a $250,000 fine. Upon conviction, Warren would also forfeit seized currency, the firearms, and ammunition. The Bureau of Indian Affairs and the Delaware County Sheriff are the investigative agencies.            

TULSA, Okla. — United States Attorney Danny C. Williams Sr. announced today that Assistant U.S. Attorney (AUSA) Charles M. McLoughlin will lead the efforts of his Office in connection with the Department of Justice’s nationwide Election Day Program for the upcoming November 4, 2014 elections. Assistant U.S. Attorney McLoughlin has been appointed to serve as the District Election Officer (DEO) for the Northern District of Oklahoma, which encompasses 11 counties, including Tulsa. The DEO is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Department of Justice’s Headquarters in Washington, D.C.

United States Attorney Williams said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.” He added, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”

The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.

Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.

The voting franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the voting franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO McLoughlin will be on duty in this District while the polls are open. He can be reached by calling (918) 382-2700 or by email at Charles.mcloughlin@usdoj.gov.

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The FBI can be reached by calling at (918) 664-3300.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or
(202) 307-2767, by fax at (202) 307-3961, by email to voting.section@usdoj.gov or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.

TULSA, Okla. — The operator of a cancer treatment clinic formerly located in Owasso and Broken Arrow, Oklahoma, Antonella Carpenter, 70, appeared in federal court today before United States Magistrate Judge Paul J. Cleary to face 41 counts of fraud, announced U.S. Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. The grand jury returned the charges in a superseding indictment filed October 15, 2014. Carpenter entered a plea of not guilty to all charges.

“This prosecution demonstrates the commitment of the United States Attorney’s Office to seek justice for those most vulnerable victims of fraud who seek hope and healing after the anguish of a cancer diagnosis,” said U.S. Attorney Williams.

The superseding indictment alleges that from approximately November 2006 to December 2012, Carpenter orchestrated a scheme to obtain money from cancer patients by means of false and fraudulent representations. Carpenter claimed to be able to cure various kinds of cancer by using lasers to heat cancerous tissue injected with a mixture of saline solution and dye composed of either ordinary food dye or walnut hull extract.  Carpenter called her treatment method “Light Induced Enhanced Selective Hyperthemia” or “LIESH.” The superseding indictment alleges that Carpenter made materially false claims to patients about LIESH, including that the treatments were 100% effective on any type of tissue and that they had absolutely no negative side effects.  Carpenter, who is not a medical doctor, operated her clinic under the name “Lase Med.”

Counts 1 through 5 of the superseding indictment allege that Carpenter induced persons to travel in interstate commerce in an effort to defraud them of at least $5,000. Counts 6 through 39 allege that Carpenter used interstate wire communications to defraud patients. Counts 40 and 41 allege that Carpenter used the United States mails in furtherance of her fraudulent scheme. 

Carpenter faces up to 10 years of imprisonment on Counts 1 through 5, and up to 20 years of imprisonment on the remaining counts, in addition to other penalties, including a forfeiture judgment in the amount of at least $1,102,160 representing proceeds obtained as a result of Carpenter’s fraudulent scheme. 

The case has been investigated by the U.S. Food & Drug Administration–Office of Criminal Investigations, and is being prosecuted by Assistant U.S. Attorneys Kevin C. Leitch, Clemon Ashley and Catherine Depew. 

Carpenter is a resident of Tulsa, Oklahoma. The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

U.S. v. Antonella Carpenter

TULSA, Okla. — Today, United States Attorney Danny C. Williams Sr. announced that William J. Butler II, 61, of Grove, Oklahoma, was sentenced to 38 months in prison for money laundering. Butler pleaded guilty on July 23, 2014, to a criminal Information filed on May 6, 2014.

Butler pleaded guilty to depositing $40,000 of funds fraudulently obtained from an elderly woman into a bank account in Grove, Oklahoma on June 19, 2012. Butler admitted that, in addition to the $40,000 deposited, an additional fraudulently obtained $33,985.85 was deposited from March 21, 2012 until June 19, 2014.

In addition to the term of incarceration, U.S. District Judge John E. Dowdell ordered Butler to pay restitution in the amount of $77,985.85. The court also entered a money judgment in the amount of $40,000 against Butler.

The matter was investigated by the IRS- Criminal Investigation. Assistant U.S. Attorneys Shannon Bears Cozzoni and Catherine Depew prosecuted the case on behalf of the United States.

U.S. v. William J. Butler III

TULSA, Okla. — Daniel Trenton Krueger, one of two leaders of the computer hacking group known as Team Digi7al, was sentenced today to serve twenty-four months in federal prison for hacking the U.S. Navy, National Geospatial-Intelligence Agency, and over 50 public and private computer systems, U.S. Attorney Danny C. Williams Sr. announced.

Krueger, 20, of Dix, Illinois, previously pleaded guilty before U.S. District Judge James H. Payne on May 20, and was initially charged in a single-count information on May 5, 2014. At the time of the hacking Krueger was a student. The co-defendant, Nicholas Paul Knight, 27, of Chantilly, Virginia, will be sentenced on November 21, 2014. Knight was an active-duty enlisted member of the Navy aboard the USS Harry S. Truman at the time of the hacking.

“Cybercrime is one of the most serious national security challenges we face as a nation, and it is one of the Department of Justice’s highest priorities,” said U.S. Attorney Williams. “We will vigorously investigate and prosecute cybercrimes. I commend the Naval Criminal Investigative Service and the Defense Criminal Investigative Service for their quick actions to identify and investigate the computer intrusions.”

According to court documents, in June 2012, the Naval Criminal Investigative Service (NCIS) detected a breach of the U.S. Navy’s Smart Web Move (SWM) database, which stored personal records, including Social Security numbers, names, and dates of birth, for approximately 222,000 service members. The servers that stored these records were located in Tulsa. At the time of the hacking attacks, Knight, Krueger, and other Team Digi7al conspirators posted links to the stolen information on a Team Digi7al Twitter account.

Investigators with the NCIS and the Defense Criminal Investigative Service (DCIS) identified Knight and Krueger as the hackers after a sting operation aboard the USS Harry S. Truman.

Victims of the conspiracy included the following organizations:

• U.S. Navy
• U.S. National Geospatial-Intelligence Agency
• U.S. Department of Homeland Security
• MobiTv
• Autotrader.com
• Harvard University
• Johns Hopkins University
• Kawasaki
• Library of Congress
• Los Alamos National Laboratory
• Louisville University
• MeTV Network
• Montgomery Police Department (Alabama)
• Peruvian Ambassador’s email (in Bolivia)
• San Jose State University
• Stanford University
• Toronto Police Service (Canada)
• Ultimate Car Page
• University of Alabama
• University of British Columbia (Canada)
• University of Nebraska-Lincoln
• World Health Organization

The case was investigated by the NCIS Atlantic Cyber Operations office in Norfolk, Virginia, with the cooperation and assistance of the DCIS Cyber Field Office, and other federal, state, and local agencies. The case was prosecuted by Assistant U.S. Attorney Joel-lyn A. McCormick on behalf of the United States.

TULSA, Okla. — A Sand Springs man was sentenced in Federal court today for providing false information to the Oklahoma Employment Security Commission resulting in the receipt of over $16,000 in unemployment insurance benefits, announced United States Attorney Danny C. Williams Sr., for the Northern District of Oklahoma. A Federal grand jury charged Hansen by indictment on June 5, 2014.

United States District Chief Judge Gregory K. Frizzell sentenced Laverne Robert Hansen, 50, of Sand Springs, to serve five years of Probation and ordered him to pay $16,051.70 in restitution. Previously, Hansen received unemployment insurance benefits while falsely claiming he was unemployed. In fact, he was working and earning money.

The case was investigated by the Department of Labor’s Office of the Inspector General and prosecuted by Assistant U.S. Attorney Jeffrey A. Gallant on behalf of the United States.

TULSA, Okla. — Muscogee (Creek) Nation Second Chief Roger Dana Barnett, 53, of Bristow, pleaded guilty before United States District Court Chief Judge Gregory K. Frizzell to embezzling approximately $150,000 from the Tribe, announced U.S. Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. Barnett was indicted on August 6, 2014.

Barnett admitted that, from April 2013 through April 2014, he embezzled more than $1,000 of the Muscogee (Creek) Nation funds from the Tribe’s Direct Assistance Fund, a tribal executive branch fund meant to aid tribal citizens in need.

The Government told the court it estimated the loss and restitution amounts to be approximately $211,000. The Government also told the court the direct assistance funds were embezzled by Barnett when he went to area casinos and withdrew the funds from ATMs.  Barnett admitted he then used the money to gamble.

At the time of sentencing, Barnett faces the statutory maximum penalty of five years in prison and a $250,000 fine.

The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Shannon Cozzoni and Trent Shores on behalf of the United States.

TULSA, Okla. — Willard Lenord Jones, 63, of Tulsa, church pastor and former Executive Director of the Greater Cornerstone Community Development Project, pleaded guilty today before United States District Judge John E. Dowdell to three counts of wire fraud and one count of subscribing to a false tax return, announced U.S. Attorney Danny C. Williams Sr., for the Northern District of Oklahoma. Jones was charged by information on August 13, 2014, and sentencing is scheduled for January 12, 2015 at 10:00 a.m.

At the change of plea hearing, Jones admitted that, from September 2007 to June 2013, he misappropriated approximately $933,000 from the Greater Cornerstone Community Development Project, a non-profit organization formed to raise money for the building and operation of a community center in South Haven, a neighborhood in West Tulsa.

As the Executive Director, Jones solicited monetary contributions from donors, including foundations, corporations, churches and individuals, to fund the development project. As part of the scheme, Jones fraudulently transferred funds from community center bank accounts to church bank accounts and then transferred those funds into personal bank accounts. Jones admitted using the money on personal expenses and luxury items, including, hotels, gambling, liquor, automobiles, and jewelry. Pursuant to his plea agreement, Jones will forfeit his residence, a Rolex watch and fur coat. A criminal forfeiture money judgment will also be entered against him in the amount of $933,507.80.

At the time of sentencing, Jones faces the statutory maximum penalty of 20 years in prison for each count of wire fraud and three years for subscribing to a false tax return. Jones would also forfeit his residence and luxury items and face a criminal forfeiture money judgment.

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigations. United States Attorney Danny C. Williams Sr., and Assistant U.S. Attorneys Joseph F. Wilson, Kevin C. Leitch, and Catherine Depew are prosecuting on behalf of the United States.

TULSA, Okla. — William Ray Allen, 33, of Tulsa, a former medical technician responsible for collecting urine specimens for random urinalysis drug testing, pleaded guilty before Magistrate Judge T. Lane Wilson today to accepting bribes in exchange for submitting fraudulent urinalysis drug tests and to submitting a falsified certification, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma.

On September 4, 2014, a Federal grand jury indicted Allen with four counts of honest services mail fraud and three counts of accepting a bribe. Sentencing has been scheduled for January 6, 2015 at 10:00 a.m.

At the change of plea hearing, Allen admitted that, on August 8, 2014, while employed by 12 & 12, Incorporated, he warned those selected for court ordered random drug testing that they were going to be tested. He also substituted his own urine or the urine of others for drug testing and submitted falsified certifications with the substituted urine for analysis. Allen admitted to knowingly shipping the fraudulent substituted urine samples via Federal Express to the U.S. Probation Drug Laboratory. 12 & 12, Incorporated is a drug treatment facility contracted by the U.S. Probation Office to provide court ordered drug testing and treatment services to persons under supervision.

At the time of sentencing, Allen faces the maximum penalty of 20 years in prison and a $250,000 fine for honest services mail fraud; and, not more than 15 years in prison and a $250,000 for accepting a bribe.

The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Joel-lyn A. McCormick is prosecuting on behalf of the United States.

TULSA, Okla. — The results of the October 2014 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.

Steven Lee Burch. Abusive Sexual Contact in Indian Country. Burch, 46, of Collinsville, is charged with engaging in non-consensual sexual contact with a woman within Indian Country. If convicted, the statutory maximum penalty is two years in prison and a $250,000 fine. The Federal Bureau of Investigation and the Cherokee Nation Marshal Service are the investigating agencies.

David Castrejon. Possession of Methamphetamine with Intent to Distribute. Castrejon, 30, of Turlock, California, is charged with possessing 500 grams or more of methamphetamine with intent to distribute. If convicted, the minimum statutory penalty is 10 years in prison and a $10,000,000 fine. If convicted, the defendant may also forfeit seized currency. The Drug Enforcement Administration and the Tulsa Police Department are the investigating agencies.

Josue Antonio Chavez. Alien in the United States After Deportation. Chavez, 32, is charged with having unlawfully returned to the United States after being deported in June 2012 from Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigative agency.

Ray Alan Cook. Felon in Possession of a Firearm and Ammunition. Cook, 30, of Tulsa, is charged with possessing a .22 caliber pistol and ammunition after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and $250,000 fine. The defendant also faces forfeiture of the firearm involved in the offense. The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigating agencies.

Joan Ervin Cruz-Garcia. Alien in the United States After Deportation. Cruz-Garcia, 24, is charged with having unlawfully returned to the United States after being deported in January 2012 from Laredo, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigative agency.

Cesar Estrada-Sandoval. Alien in the United States After Deportation. Estrada-Sandoval, 30, is charged with having unlawfully returned to the United States after being deported in December 2007 from El Paso, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigative agency.

Joshua Eli Owen. Felon in Possession of Firearm and Possession of Firearm After Conviction of Misdemeanor Crime in Domestic Violence. Owen, 26, of Tulsa, is charged with possessing a .25 caliber pistol after prior felony convictions and after having been convicted of a misdemeanor crime of domestic violence. If convicted, each offense carries a statutory maximum penalty of 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearm and Explosives is the investigating agency.

Antonio Padilla-Lopez. Alien in the United States After Deportation. Padilla-Lopez, 42, is charged with having unlawfully returned to the United States after being deported in December 2007 from El Paso, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigative agency.

George Eugene Pryor. Theft of Government Property. Pryor, 46, of Sand Springs, is charged with fraudulently receiving approximately $19,000 in Social Security disability payments from the Social Security Administration. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Social Security Administration-Office of the Inspector General is the investigating agency.

Ismael Serrano-Rodriguez. Alien in the United States After Deportation. Serrano-Rodriguez, 56, is charged with having unlawfully returned to the United States after being deported in April 2012 from San Ysidro, California. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigative agency.

Laura Sosa-Bringas. Alien in the United States After Deportation. Sosa-Bringas, 38, is charged with having unlawfully returned to the United States after being deported in August 2012 from Otay Mesa, California. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigative agency.

TULSA, Okla. — United States District Judge John E. Dowdell sentenced Hunter Lee Hines, 19, of Claremore, to serve six months to run concurrent with his undischarged term of imprisonment in Rogers County for unrelated convictions, to be followed by three years of supervised release, for threatening the life of the President of the United States, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.

“Regardless of who makes the threat or how the threat is communicated, whether it is a mailed letter, a phone call, or via social media, the threat against the President’s life will be taken seriously by law enforcement,” said Williams. “I commend the Rogers County Jail for quickly notifying the U.S. Secret Service about the contents of the threatening letter.”

According to court documents, Hines admitted that on December 15, 2013, he wrote and mailed a life threatening letter to the President of the United States. On February 5, 2014, a Federal grand jury charged Hines by Indictment for threatening to kill, kidnap or inflict bodily harm on the President. Hines pleaded guilty on July 7, 2014.

The case was investigated by the U.S. Secret Service and Assistant U.S. Attorney Gary L. Davis II prosecuted on behalf of the United States.

TULSA, Okla. — Damian Deshane Wardell, a/k/a “Fray Fray,” 40, of Tulsa, was sentenced today by U.S. District Judge Claire V. Eagan to serve 92 months in federal prison on charges related to child sex trafficking, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.

In February, a Federal Grand Jury charged Wardell by Indictment with crimes related to Sex Trafficking of a Child. He pleaded guilty on May 6, 2014.

According to court documents, Wardell admitted, from November 19 to 22, 2013, he prostituted a 16-year-old female at a Tulsa area motel. The victim’s mother alerted the Tulsa Police Department to her daughter’s whereabouts. Tulsa Police Department officers arrested Wardell and found the victim and two other juvenile females in the motel room.

The case was investigated by the Tulsa Police Department’s Vice Unit and prosecuted by Assistant U.S. Attorneys Trent Shores and Clinton Johnson on behalf of the United States.

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. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.

TULSA, Okla. — Kerry Lynn Rowell, 42, of Mannford, was sentenced by U.S. District Court Chief Judge Gregory K. Frizzell to six months of home detention with electronic monitoring, to be followed by five years of probation, for fraudulently obtaining Federal Emergency Disaster Agency (FEMA) disaster assistance benefits made available to victims of the August 2012 Mannford wildfires, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. As part of the sentencing, the Court ordered Rowell to pay restitution in the amount of $31,400 to FEMA.

Rowell pleaded guilty to the charge on May 2, 2014 and was charged by information on March 18, 2014.

According to the plea agreement, from August 23, 2012 to September 23, 2013, Rowell made false statements and provided false documents to support her application for FEMA disaster assistance. Rowell claimed her primary residence and personal property, including appliances and televisions, were destroyed by the wildfires, when in fact she did not reside at that residence and the personal property was not in the residence. The house was actually owned by her mother and was uninhabited, dilapidated, and had no utility service. Rowell fraudulently received $31,400 in FEMA disaster assistance benefits.

The case was investigated by the U.S. Department of Homeland Security’s Office of the Inspector General and the United States Secret Service. Assistant U.S. Attorney Charles M. McLoughlin prosecuted on behalf of the United States.

If someone has any questions about how assistance benefits may be spent, has made a mistake when reporting damage, or has misrepresented losses, he or she may correct the situation immediately by calling the toll-free FEMA Helpline at 1-800-621-FEMA or 1-800-462-7585 (TTY) for the speech or hearing impaired.

Anyone with information that an individual may have defrauded the government in connection with a disaster may call the toll-free DHS’s OIG Hotline at 1-800-323-8603. Complaints may be made anonymously and confidentially.

TULSA, Okla. — A former medical technician was charged in U.S. District Court Tuesday for accepting bribes in exchange for fraudulently submitting urine specimens for drug analysis, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma.

William Ray Allen, 33, of Tulsa, was charged with four counts of honest services mail fraud and three counts of accepting a bribe. According to the Indictment returned by the Federal Grand Jury, Allen was employed as a medical technician at 12 & 12, Incorporated, a drug treatment facility contracted by the U.S. Probation Office to provide drug testing and treatment services to persons under supervision by order of the U.S. District Court, and was responsible for collecting urine specimens for random urinalysis drug testing.

The Indictment alleges that from July of 2011 to August of 2014: Allen provided prior notification to those who had been selected for random drug testing; substituted his own urine or the urine of others for drug testing instead of collecting and submitting urine samples from the persons subject to Court ordered random drug testing; and, submitted falsified certifications with the substituted urine submitted for analysis. The Grand Jury charged that, as part of the mail fraud, Allen knowingly shipped the fraudulently substituted urine specimens via Federal Express to the U.S. Probation Drug Laboratory in Albuquerque, New Mexico. According to the Indictment, the bribes Allen accepted was the money he received in exchange for the fraudulent submission of false urine specimens for drug analysis.

If convicted, the defendant could be sentenced up to 20 years imprisonment and a $250,000 fine on each count of honest services mail fraud; and, not more than 15 years imprisonment and a $250,000 fine for each bribery count.

The Federal Bureau of Investigation is the investigating agency and Assistant U.S. Attorney Joel-lyn A. McCormick is prosecuting on behalf of the United States.

U.S. v. William Ray Allen

TULSA, Okla. — The results of the September 2014 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.

Jose Elias Aroca-Lara. Alien in the United States After Deportation. Aroca-Lara, 32, is charged with having unlawfully returned to the United States after being deported in January 20006 at Harlingen, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. U.S. Immigration and Customs Enforcement is the investigative agency.

Steven Ray Auten. Bank Robbery. Auten, 30, of Owasso, is charged with robbing the International Bank of Commerce in Owasso by use of a hoax bomb. If convicted, the statutory maximum penalty is 25 years in prison and a $250,000 fine. The Federal Bureau of Investigation is the lead investigative agency.

Raymundo Duran, Jorge Jesus Campos-Rodriguez, Robert Wilkerson, Steven James Hernandez, Thomas Carranza, and Leonel Mercado. Drug Conspiracy. Duran, 29, Mercado, 22, both of Perris, California, Campos-Rodriguez, 25, of Colton, California, Wilkerson, 51, of Riverside, California, Hernandez, 56, of San Bernardino, California, and Carranza, 47, of Carson, California, are charged with a drug conspiracy involving 500 grams or more of methamphetamine from April 2012 to January 2013. If convicted, the statutory penalty is not less than 10 years and up to life in prison and a $10,000,000 fine. The defendants also face entry of a $500,000 money judgment. The Drug Enforcement Administration is the investigating agency.

Jose Bernardo Gonzalez-Ramos. Alien in the United States After Deportation. Gonzalez-Ramos, 28, is charged with having unlawfully returned to the United States after being deported in September 2011 at Laredo, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. U.S. Immigration and Customs Enforcement is the investigative agency.

Steven Edward Johnson and Chailla Michelle Johnson.  Possession of Methamphetamine with Intent to Distribute. Steven Johnson, 41, and Chailla Johnson, 33, both of Tulsa, are charged with possessing 50 grams or more of methamphetamine with intent to distribute. If convicted, the statutory penalty is not less than five years and not more than 40 years in prison and a $5,000,000 fine. U.S. Immigration and Customs Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigating agencies.        

Agustin Lechuga-Munoz. Alien in the United States After Deportation. Lechuga-Munoz, 32, is charged with having unlawfully returned to the United States after being deported in September 2010 at Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. U.S. Immigration and Customs Enforcement is the investigative agency.

Victor Lozaria-Montoya. Alien in the United States After Deportation.Lozaria-Montoya, 22, is charged with having unlawfully returned to the United States after being deported in April 2013 at Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. U.S. Immigration and Customs Enforcement is the investigative agency.

Jessica Lynn Nealis. Possession of Methamphetamine with Intent to Distribute. Nealis, 27, of Springfield, Missouri, is charged with possessing methamphetamine with intent to distribute. If convicted, the statutory maximum penalty is 20 years in prison and a $1,000,000 fine. The defendant also faces entry of a money judgment and forfeiture of seized currency. The Indictment is the result of a joint investigation by the Eastern Shawnee Tribal Police and the Bureau of Indian Affairs-Office of Justice Services.

Roberto Perez-Ruano. Alien in the United States After Deportation.Perez-Ruano, 33, is charged with having unlawfully returned to the United States after being deported in September 2011 from Laredo, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. U.S. Immigration and Customs Enforcement is the investigative agency.

Corry Donta Purify. Felon in Possession of a Firearm and Ammunition and Maintaining a Drug Involved Premise. Purify, 38, of Tulsa, is charged with unlawfully possession of a .40 caliber pistol and ammunition after prior felony convictions and with maintaining a drug involved premise. If convicted, the statutory maximum penalty for the firearm and ammunition charge is 10 years in prison and a $250,000 fine; and for maintaining a drug involved premise charge is 20 years in prison and a $1,000,000 fine. The defendant also faces forfeiture of the firearm and ammunition. The Federal Bureau of Investigation is the investigating agency.

Truong Son Do, Hong Van Thi Nguyen, and Vinh Nguyen. Drug Conspiracy, Possession of Marijuana with Intent to Distribute, and Receipt of a Firearm While Under Indictment. Do, 30, Hong Van Thi Nguyen, 29, and Vinh Nguyen, 26, all of Broken Arrow, are charged with drug conspiracy involving marijuana and with possession of less than 50 kilograms of marijuana with intent to distribute. In addition, Do is charged with receiving an AK-47 while under Indictment in Tulsa County District Court. If convicted, the statutory maximum penalty for each count is five years in prison and a $250,000 fine. The defendants face entry of a money judgment and forfeiture of the firearm. The Federal Bureau of Investigation is the investigating agency.

Aaron Grant Washington. Distribution of Methamphetamine. Washington, 39, of Tulsa, is charged with distributing methamphetamine. If convicted, the statutory maximum penalty is 20 years in prison and a $1,000,000 fine. The indictment is the result of a joint investigation by the Osage Nation Police Department and the Bureau of Indian Affairs-Office of Justice Services.     

TULSA, Okla. — On Friday, a federal jury found Samuel Garcia-Escalera, 36, and Joel Deloera-Escalera, 34, guilty of conspiring to distribute and possess with the intent to distribute 15 kilograms or more of methamphetamine; maintaining drug-involved premises; possession of firearms and ammunition; and being aliens illegally in the United States after deportation; announced United States Attorney Danny C. Williams Sr., for the Northern District of Oklahoma.

The second Superseding Indictment was filed on April 14, 2014, and unsealed on April 15, 2014. United States District Judge Claire V. Eagan, who presided over the trial, scheduled the sentencings on November 24, 2014, for Joel Deloera-Escalera, and November 25, 2014, for Samuel Garcia-Escalera.

According to court documents, from April 2012 to August 2013, Garcia-Escalera and Deloera-Escalera conspired to distribute and possess with intent to distribute 15 kilograms or more of methamphetamine. The jury also found Garcia-Escalera and Deloera-Escalera guilty of maintaining houses for the purpose of storing and distributing methamphetamine, and possession of firearms and ammunitions while being aliens illegally and unlawfully in the United States. Specifically, Garcia-Escalera was found guilty of possessing a .45 caliber pistol; and Deloera-Escalera was found guilty of possessing a .40 caliber pistol, 9mm caliber semi-automatic pistol, a .22 caliber revolver, and various ammunitions. Garcia-Escalera was also found guilty of possessing a .45 caliber pistol in furtherance of a drug trafficking crime.

In a separate criminal information, Garcia-Escalera pleaded guilty to attempting to corruptly persuade others with the intent to prevent witnesses from testifying in the trial. He faces up to 20 years in prison and a $250,000 fine.

At the time of sentencing, the defendants face up to life in prison and up to a $10,000,000 fine for the drug conspiracy; up to 20 years in prison and a $500,000 fine for maintaining a drug-involved premise; up to 10 years in prison and a $250,000 fine for possession of firearms and ammunition as illegal aliens. Garcia-Escalera also faces up to life in prison and a $250,000 for possession of a firearm in furtherance of a drug trafficking crime.
As a part of their sentence, the defendants face entry of a forfeiture money judgment in the amount of at least $1,750,000. The judgment represents proceeds obtained as a result of the methamphetamine conspiracy.

The case was investigated by the Tulsa Police Department, Oklahoma Bureau of Narcotics, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and prosecuted by Assistant U.S. Attorneys Gary L. Davis II, Jan Reincke, and Catherine Depew on behalf of the United States.

U.S. v. Samuel Garcia-Escalera and Joel Deloera-Escalera

TULSA, Okla. — In a 5th Superseding Indictment, unsealed today in the United States District Court, approximately 52 members and associates of the Hoover Crips Street Gang and the Donald Walter’s Drug Trafficking Organization were charged with 238 criminal offenses, including drug conspiracy, engaging in a continuing criminal enterprise, weapon offenses, retaliating against a witness, and conspiring to promote dog fighting.

The charges are the result of a three-year U.S. Attorney’s Office, Organized Crime Drug Enforcement Task Force investigation, led by the Tulsa Police Department’s Homicide and Special Investigation Divisions, and the Federal Bureau of Investigation in collaboration with the U.S. Drug Enforcement Administration; the Tulsa County District Attorney’s Office; the U.S. Marshal Service; the Oklahoma Attorney General’s Office; the Tulsa County Sheriff’s Office; the Broken Arrow Police Department; the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the Oklahoma Highway Patrol; and the Norman Police Department.

The charges were announced today at a press conference by United States Attorney Danny C. Williams Sr., Northern District of Oklahoma; FBI Special Agent in Charge James E. Finch, Oklahoma City Division; Oklahoma Attorney General E. Scott Pruitt; Tulsa County District Attorney Tim Harris; Tulsa Police Chief Chuck Jordan; and DEA Special Agent in Charge Dan Salter. 

According to the allegations in the 5th Superseding Indictment, from April 2011 to August 2014, the defendants conspired to purchase cocaine and marijuana from the Sinaloa Cartel and the Los Zeta Cartel. Both Cartels operated in Mexico, and sold drugs in the Tulsa area. During the conspiracy, money generated was used for dog fighting, gambling, travel, and vehicle purchases.

The 5th Superseding Indictment further alleges, the defendants operated “crack houses” in the Tulsa area for cooking, packaging, and selling of cocaine. These houses were also used as locations for money drops. The defendants would also use dozens of coded phrases when communicating and would “drop” phones in order to avoid law enforcement detection.

The defendants are also charged with purchasing, training, and breeding pit bulls for dog fighting.

In addition, Lorell Antonio Battle and Gaywone Dekeith Blades are charged with conspiring to retaliate against fellow gang member Anthony Campbell, who was a witness in a Federal trial and who provided information to law enforcement about street gang activities and other crimes. On April 3, 2013, Battle allegedly shot approximately 13 times at close range and killed Campbell.

If convicted, the defendants face forfeiture of vehicles, firearms, and nine (9) residences used to manufacture and distribute crack cocaine. The defendants also face entry of a $10 million dollar criminal forfeiture money judgment.

Assistant United States Attorneys Allen J. Litchfield, Robert T. Raley, Eric O. Johnston, and Catherine Depew are prosecuting the case on behalf of the United States.

An indictment is one method of charging defendants with alleged violations of Federal Law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.

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U.S. v. Lorell Antonio Battle et al.pdf (1.31 MB)

TULSA, Okla. — Willard Lenord Jones, 63, of Tulsa, Church pastor and former Executive Director of the Greater Cornerstone Community Development Project, was charged today with three counts of wire fraud and one count of subscribing to a false tax return by criminal information.

Danny C. Williams Sr., the United States Attorney for the Northern District of Oklahoma; James E. Finch, the Special Agent in Charge of the Oklahoma City Division of the Federal Bureau of Investigation; and R. Damon Rowe, the Special Agent in Charge of the Dallas Office of Internal Revenue Service Criminal Investigation made the announcement.

According to the Information, from September 2007 to June 2013, Jones defrauded approximately $933,000 from the Church and the Greater Cornerstone Community Development Project. The Greater Cornerstone Community Development Project is a non-profit organization formed to raise money for the building and operation of a community center in South Haven, a neighborhood in West Tulsa.

As the Executive Director, Jones oversaw the design, construction and fundraising for building the Community Center. Jones solicited monetary contributions from donors, including, foundations, corporations, churches and individuals, to fund the development project.

The scheme to defraud charged in the Information accuses Jones of fraudulently transferring funds from Community Center bank accounts to Church bank accounts and then transferring those funds into personal bank accounts; and, that Jones made large cash withdrawals from the Church bank account that he then used for personal expenses.

Rather than pay for construction operating costs of the Community Center, Jones used the proceeds of his fraud scheme for luxury items, including, hotels, restaurants, casinos, liquor, automobiles, a Rolex watch and a mink coat.

In addition, Jones was charged with one count of subscribing to a false 2011 Form 1040 U.S. Individual Income Tax because he didn’t report approximately $390,061 of income on that return.

If convicted, the maximum penalty would be 20 years imprisonment for each count of wire fraud and three years for subscribing to a false tax return. Jones would also forfeit his residence and luxury items; and face entry of approximately one million dollars in criminal forfeiture money judgment.

The case is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation. The prosecution is being handled by Assistant U.S. Attorneys Joseph F. Wilson, Kevin C. Leitch, and Catherine Depew on behalf of the United States.

The charges contained in the Information are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

U.S. v. Willard Lenord Jones

TULSA, Okla. — A former manager of a credit union was sentenced on Tuesday to serve 27 months for each count of bank fraud and tax evasion, announced U.S. Attorney Danny C. Williams Sr. for the Northern District of Oklahoma and Special Agent in Charge R. Damon Rowe of the Dallas field office for the Internal Revenue Service Criminal Investigation.

Eva Barroso, 54, of Broken Arrow, was sentenced to serve 27 months in federal prison by U.S. District Judge Chief Judge Gregory K Frizzell for one count each of bank fraud and tax evasion.  At the time of the scheme, Barroso worked as a commercial services manager for Oklahoma Central Credit Union (OCCU) where her duties included marketing and servicing commercial loans.  The Court entered a criminal forfeiture money judgment against the defendant in the amount of $238,177.42 representing proceeds obtained as a result of his bank fraud scheme.  Barroso was also ordered to make restitution in the amount of $238,177.42 to OCCU and $57,360.50 to the Internal Revenue Service.

According to court documents, from July 2, 2009 to March 19, 2012, as part of the scheme, Barroso fabricated at least three false loans in the name of nominee entities and individuals without the knowledge and authorization of the purported borrower.  Barroso admitted that she made various material false representations in obtaining these loans.  She used the proceeds of these loans for her own personal benefit, including making ATM withdrawals at various casinos.  To further the scheme, Barroso used some of the money to make payments on prior loans.

In addition, during the 2010 calendar year, Barroso willfully evaded a large part of income tax by failing to report to the Internal Revenue Service a total of $152,098.13 which was the money she fraudulently obtained from the scheme.

The case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation and was prosecuted by Assistant United States Attorneys Jeffrey Gallant and Catherine Depew on behalf of the United States.

TULSA, Okla. — The results of the August 2014 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.

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

Max Robert Ernst. Bank Fraud and Possession of Stolen Mail. Ernst, 28, of Tulsa, is charged with one count of defrauding the Stillwater National Bank and Trust Company by means of a forged check. The defendant is also charged with possessing stolen mail. If convicted, bank fraud carries a statutory maximum penalty of 30 years in prison and a fine of $1,000,000 and possession of stolen mail carries five years in prison and a fine of $250,000. The United States Postal Inspection Service is the investigative agency.

Ramon Gomez-Maldonado, Domingo Maldonado, Luis Alberto Cazares, Gregory Neil Gibson, Pamela Renee Gibson, Thomas Coy Gray Jr, Fernando Guzman-Martinez, and Jose L. Ramon Salgado. Drug Conspiracy and Possession of Methamphetamine with Intent to Distribute.Gomez-Maldonado, 39, Maldonado, Cazares, 26, Salgado, 28, of Tulsa, and Guzman-Martinez, 22, of Dallas, Texas, all aliens, Gregory Gibson, 31, Pamela Gibson, 36, Gray, 53, all of Tulsa, are charged with conspiring to possess with intent to distribute 500 grams or more of methamphetamine and to distribute 500 grams or more of methamphetamine; if convicted, the minimum statutory penalty is 10 years imprisonment and the statutory maximum penalty is Life imprisonment and a fine of $10,000,000. In addition, Gomez-Maldonado, Cazares, and Guzman-Martinez are charged with possessing with intent to  distribute one kilogram of methamphetamine in May of 2014; if convicted, the minimum statutory penalty is 10 years imprisonment and the statutory maximum penalty is Life imprisonment and a fine of $10,000,000. Gomez-Maldonado, Cazares, Gregory Gibson and Pamela Gibson are charged with possessing with intent to distribute 50 grams or more of methamphetamine in June of 2014; Gomez-Maldonado, Cazares, and Gray are charged with possessing with intent to distribute methamphetamine in June of 2014; and Gomez-Maldonado, Cazares, and Salgado are charged with possessing with intent to distribute 50 grams or more of methamphetamine in July of 2014; if convicted of these crimes, the minimum statutory sentence is 5 years imprisonment and the maximum penalty is 40 years imprisonment and a fine of $5,000,000. The defendants would also face entry of a criminal forfeiture money judgment. The Drug Enforcement Administration is the investigative agency.

Jose Hernandez. Possession of Cocaine with Intent to Distribute and Possession of Marijuana with Intent to Distribute. Hernandez, 36, of Tulsa, is charged with possession of cocaine with intent to distribute and possession of marijuana with intent to distribute. If convicted, the statutory maximum penalty is 20 years in prison and a fine of $1,000,000 for possession of cocaine with intent to distribute and five years in prison and a fine of $250,000 for possession of marijuana with intent to distribute. The Tulsa Police Department is the investigative agency.

Dennis James Jefferson and Scotty Wayne Harjo. Drug Conspiracy and Use of a Communication Facility in Committing and Facilitating the Commission of a Drug Trafficking Felony. Jefferson, 27, of Terlton, and Harjo, 30, of Tulsa, are charged with conspiring to possess with intent to distribute 50 grams or more of methamphetamine. The defendants are also charged with using the U.S. Postal Service to accept a mail parcel containing methamphetamine and facilitating the distribution of methamphetamine.  If convicted for the drug conspiracy, the defendants face a minimum of 5 years and maximum of 40 years in prison and a fine of up to $5,000,000.  If convicted for use of the United States mail in committing a drug trafficking felony, the defendants are subject to a maximum prison sentence of four years and a fine of $250,000. The defendants would also face entry of a criminal forfeiture money judgment.  The United States Postal Inspection Service is the lead investigative agency with assistance from Tulsa Police Department and Drug Enforcement Administration.

Luis Manuel Martinez-Martinez. Possession of a Firearm and Ammunition by an Alien Illegally in the United States and Alien in the United States After Deportation. Martinez-Martinez, 27, an alien illegally in the U.S., is charged with possessing a firearm and ammunition. The defendant is also charged with being in the U.S. illegally after deportation in April of 2011 near Laredo, Texas. If convicted, Martinez-Martinez faces up to 10 years in prison and a fine of $250,000 for possession of a firearm and ammunition and up to 20 years in prison and a $250,000 fine for being an alien in the U.S. after deportation. The U.S. Immigration and Customs Enforcement is the investigative agency.

Charles Jason Moreland. Influencing, Impeding, and Retaliating Against a Federal Official, Influencing, Impeding, and Retaliating Against the Immediate Family of a Federal Official, and Interstate Communications Containing Threats to Injure. Moreland, 31, of Tulsa, is charged with threatening to assault United States Senator Harry Reid and his immediate family members with the intent to interfere with and retaliate against Senator Reid while engaged in the performance of his official duties. The defendant is also charged with using interstate communication to transmit threats to injure Senator Reid. If convicted, the statutory maximum penalty of Counts One through Three is not more than 10 years in prison and a fine of $250,000. The Federal Bureau of Investigation is the investigative agency.

Frank Olmos Jr. Felon in Possession of Firearm and Ammunition. Frank Olmos, Jr. 33, of Tulsa, is charged with possessing one .45 ACP caliber pistol and ammunition after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and a fine of $250,000. The defendant would also forfeit the firearm and ammunition. The Federal Bureau of Investigation is the investigative agency.

Jamie Rascon. Bank Fraud. Rascon, 30, of Siloam Springs, Arkansas, is charged with two counts of defrauding the Bank of Oklahoma by means of forged checks. If convicted, the statutory maximum penalty is 30 years in prison and a fine of $1,000,000. The United States Postal Inspection Service is the investigative agency.

William Rivera-Lara. Alien in the United States After Deportation. Rivera-Lara, 29, is charged with having returned to the United States unlawfully after being deported in April of 2014 near Phoenix, Arizona. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigative agency.

Aaron Joseph Rock. Bank Robbery. Rock, 24, of Tulsa, is charged with robbing BancFirst in Sand Springs. If convicted, the statutory maximum penalty is 20 years in prison and a fine of $250,000. The Federal Bureau of Investigation is the investigative agency.

Dustin Scott Ross. Bank Fraud. Ross, 20, of Muskogee, is charged with five counts of bank fraud. Three counts allege that Ross presented Bank of Oklahoma with forged checks and two counts allege that Ross presented the Tulsa Federal Credit Union with forged checks. If convicted, the statutory maximum penalty for each count is 30 years in prison and a fine of $1,000,000. The United States Postal Inspection Service is the investigative agency.

Fermin Soto-Alvarez. Alien in the United States After Deportation. Soto-Alvarez, 29, is charged with having returned to the United States unlawfully after being deported in April of 2009 near Paso Del Norte, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigative agency.

Oseas Vera-Guganio. Alien in the United States After Deportation. Vera-Guganio, 30, is charged with having returned to the United States unlawfully after being deported in March of 2010 at Del Rio, Texas. If convicted, Vera-Guganio faces up to 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigative agency.

TULSA, Okla. — Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma, announced Robert T. Raley, Assistant United States Attorney and current Organized Crime Drug Enforcement Task Force (OCDETF) prosecutor, was named the Oklahoma Region II Prosecutor of the Year. The award was presented by the Association of Oklahoma Narcotic Enforcers (A-ONE) on August 7, 2014, in Tulsa, Oklahoma.

In 2013, Raley prosecuted and helped supervise 12 wire taps which resulted in the indictment and prosecution of multiple defendants. These prosecutions included a two week jury trial of a drug trafficking organization which resulted in a 20 year prison sentence.

These cases resulted from state and local investigations from the Oklahoma Bureau of Narcotics and the Tulsa Police Department. Raley also prosecutes cases for the Drug Enforcement Administration, the Department of Homeland Security, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Raley sits on the High Intensity Drug Trafficking Area (HIDTA) Oklahoma Advisory Board, as well as the HIDTA Executive Board in Dallas where he represents all Oklahoma Federal law enforcement. He is a former State of Oklahoma Assistant Attorney General, Wagoner County Assistant District Attorney, and Project Director of the Multi-County Drug Task Force.

Raley has previously won the Oklahoma Region II Prosecutor of the Year Award and State of Oklahoma Prosecutor of the Year Award. Raley has been with the U.S. Attorney’s Office since 1996.

TULSA, Okla. — Muscogee (Creek) Nation Second Chief Roger Dana Barnett, 53, of Bristow, was arrested by the Federal Bureau of Investigation earlier today in relation to Federal charges alleging embezzlement of approximately $150,000 from the Tribe, announced Danny C. Williams, Sr., United States Attorney for the Northern District of Oklahoma. 

The Indictment, unsealed today, alleged Barnett embezzled, misapplied, and converted to his personal use more than $1,000 of moneys and funds belonging to the Muscogee (Creek) Nation from April 2013 through April 2014. Barnett appeared today in Federal court before United States Magistrate Judge Frank H. McCarthy.

The FBI investigation was initiated after Muscogee (Creek) Nation officials contacted Federal authorities to report the possible misuse of tribal funds.  If convicted, the maximum penalty is five years imprisonment and a fine of $250,000. Parole has been abolished in the Federal system.

The Federal Bureau of Investigation is the investigating agency.  Assistant United States Attorneys Trent Shores and Shannon Cozzoni are prosecuting this matter on behalf of the United States.

A Grand Jury Indictment is one method of charging a defendant with alleged violations of Federal Law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendants’ presumption of innocence.

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WASHINGTON – The former president and chief executive officer of BizJet International Sales and Support Inc., a U.S.-based subsidiary of Lufthansa Technik AG with headquarters in Tulsa, Oklahoma, that provides aircraft maintenance, repair and overhaul services, pleaded guilty today for his participation in a scheme to pay bribes to foreign government officials.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Danny C. Williams Sr., of the Northern District of Oklahoma and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.

“The former CEO of BizJet, Bernd Kowalewski, has become the third and most senior Bizjet executive to plead guilty to bribing officials in Mexico and Panama to get contracts for aircraft services,” said Assistant Attorney General Caldwell.  “While Kowalewski and his fellow executives referred to the corrupt payments as ‘commissions’ and ‘incentives,’ they were bribes, plain and simple.  Though he was living abroad when the charges were unsealed, the reach of the law extends beyond U.S. borders, resulting in Kowalewski’s arrest in Amsterdam and his appearance in court today in the United States.  Today’s guilty plea is an example of our continued determination to hold corporate executives responsible for criminal wrongdoing whenever the evidence allows.” 

“I commend the investigators and prosecutors who worked together across borders and jurisdictions to vigorously enforce the Foreign Corrupt Practices Act,” said U.S. Attorney Williams.  “Partnership is a necessity in all investigations. By forging and strengthening international partnerships to combat bribery, the Department of Justice is advancing its efforts to prevent crime and to protect citizens.”

Bernd Kowalewski, 57, the former President and CEO of BizJet, pleaded guilty today in federal court in Tulsa, Oklahoma, to conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and a substantive violation of the FCPA in connection with a scheme to pay bribes to officials in Mexico and Panama in exchange for those officials’ assistance in securing contracts for BizJet to perform aircraft maintenance, repair and overhaul services. 

Kowalewski was arrested on a provisional arrest warrant by authorities in Amsterdam on March 13, 2014, and waived extradition on June 20, 2014.  Kowalewski is the third BizJet executive to plead guilty in this case.  Peter DuBois, the former Vice President of Sales and Marketing, pleaded guilty on Jan. 5, 2012, to conspiracy to violate the FCPA and a substantive violation of the FCPA and Neal Uhl, the former Vice President of Finance, pleaded guilty on Jan. 5, 2012, to conspiracy to violate the FCPA.  Jald Jensen, the former sales manager at BizJet, has been indicted for conspiracy as well as substantive FCPA violations and money laundering and is believed to be living abroad.  Charges were unsealed against the four defendants on April 5, 2013. 

According to court filings, Kowalewski and his co-conspirators paid bribes directly to foreign officials to secure aircraft maintenance repair and overhaul contracts, and in some instances, the defendants funneled bribes to foreign officials through a shell company owned and operated by Jensen.  The shell company, Avionica International & Associates Inc., operated under the pretense of providing aircraft maintenance brokerage services but in reality laundered money related to BizJet’s bribery scheme.  Bribes were paid to officials employed by the Mexican Policia Federal Preventiva, the Mexican Coordinacion General de Transportes Aereos Presidenciales, the air fleet for the Gobierno del Estado de Sinaloa, the air fleet for the Gobierno del Estado de Sonora and the Republica de Panama Autoridad Aeronautica Civil. 

Further according to court filings, the co-conspirators discussed in e-mail correspondence and at corporate meetings the need to pay bribes, which they referred to internally as “commissions” or “incentives,” to officials employed by the foreign government agencies in order to secure the contracts.  At one meeting, for example, in response to a question about who the decision-maker was at a particular customer organization, DuBois stated that a director of maintenance or chief pilot was normally responsible for decisions on where an aircraft went for maintenance work.  Kowalewski then responded by explaining that the directors of maintenance and chief pilots in the past received “commissions” of $3,000 to $5,000 but were now demanding $30,000 to $40,000 in “commissions.”  Similarly, in e-mail correspondence between Uhl, DuBois, Kowalewski, and several others, Uhl responded to a question about BizJet’s financial outlook if “incentives” paid to brokers, directors of maintenance, or chief pilots continued to increase industry wide, stating that they would “work to build these fees into the revenue as much as possible.  We must remain competitive in this respect to maintain and gain market share.”

On March 14, 2012, the department announced that it had entered into a deferred prosecution agreement with BizJet, requiring that BizJet pay an $11.8 million monetary penalty to resolve charges related to the corrupt conduct.  That agreement acknowledged BizJet’s voluntary disclosure, extraordinary cooperation, and extensive remediation in this case.  In addition, the department announced on March 14, 2012, that BizJet’s indirect parent company, Lufthansa Technik AG, entered into an agreement with the department in which the department agreed not to prosecute Lufthansa Technik provided that Lufthansa Technik satisfies its obligations under the agreement for a period of three years.

This case is being investigated by the FBI’s Washington Field Office with substantial assistance form the Oklahoma Field Office.  The department has worked closely with its law enforcement counterparts in Amsterdam, Mexico and Panama, and has received significant assistance from Germany and Uruguay.  The Criminal Division’s Office of International Affairs has also provided assistance.  This case is being prosecuted by Assistant Chief Daniel S. Kahn and Trial Attorney David Fuhr of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kevin Leitch of the Northern District of Oklahoma.

Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

TULSA, Okla. — United States Attorney Danny C. Williams Sr. announced today a guilty plea by a Tulsa man for distributing child pornography.

Kenneth R. Morain, 62, of Tulsa, had been charged on February 3, 2014, in an Indictment for Possession, Receipt, and Distribution of Child Pornography following an online investigation by the Federal Bureau of Investigation.

At the Change of Plea Hearing, the government stated that Morain used free Wi-Fi internet services at various business locations around Tulsa to download child pornography and then shared the child pornography using the Peer-to-Peer (P2P) file sharing network ARES. Morain admitted during an interview with agents he was sexually attracted to children as young as infants.

The case was investigated by the Federal Bureau of Investigation and the Tulsa Police Department. Assistant U.S. Attorney Jeffrey Gallant prosecuted the case on behalf of the United States.

Sentencing is scheduled for October 22, 2014, before U.S. District Court Judge James H. Payne.

TULSA, Okla. — United States Attorney Danny C. Williams Sr. announced today the unsealing of a four count superseding indictment charging 11 defendants with conspiracy to defraud the United States and smuggle chemicals from China, substantive smuggling charges, and a money laundering conspiracy. A sealed superseding indictment was filed on June 9, 2014.

According to the superseding indictment, beginning in April of 2011, the defendants conspired to defraud the United States through deceit and dishonest means to smuggle chemicals with fraudulent documents and to sell and transport the chemicals after the chemicals had been smuggled into the United States.

The conspirators ordered chemicals from China and created fraudulent invoices and air waybills used to smuggle and transport the chemicals to residences, businesses, and other locations in Oklahoma, Nevada, Louisiana, California, and New Jersey.

Today, the Tulsa Offices of the United States Immigration Customs Enforcement Homeland Security Investigations, the Internal Revenue Service Criminal Investigations and the Tulsa County Sheriff’s Office coordinated a nationwide takedown with arrests and search warrants in the following locations:

• Tulsa:                                     2 arrest warrants
• Baton Rouge:                      3 search warrants and 2 arrest warrants
• Las Cruces:                           1 arrest warrant
• Las Vegas:                             1 arrest warrant
• New Orleans:                       1 arrest warrant
• Huntington Beach, CA:   1 arrest warrant
• Santa Ana, CA:                    1 arrest warrant
• Houston:                                1 seizure warrant

The following defendants have been arrested: 

• Ban Lam and Huong Thi Dao, in Tulsa, Oklahoma
• Tim Minh Tran and Ariel Dunn, in Baton Rouge, Louisiana
• Denis Langevin, in Las Cruces, New Mexico
• Jason Eric Johnson, in Las Vegas, Nevada
• Liem Thanh Vu, in New Orleans, Louisiana
• Minh Thang Pham, in Huntington Beach, California
• Duc Huy Vu, in Santa Ana, California

Assistant United States Attorneys Janet Reincke, Catherine Depew, and Gary L. Davis II, are prosecuting the case on behalf of the United States.

An indictment is one method of charging a defendant with alleged violations of Federal Law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendants’ presumption of innocence.

U.S. v. Tran et al.

TULSA, Okla. — The results of the July 2014 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.

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

Timothy Olen Brown. Felon in Possession of Firearm and Ammunition. Brown, 40, of Tulsa, is charged with possessing a 9mm caliber pistol and ammunition after prior felony convictions. If convicted, the maximum penalty would be 10 years in prison and a $250,000 fine. The defendant would also forfeit the firearm and ammunition. The Tulsa Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.

Jesus Jonathan Campos. Possession of Methamphetamine with Intent to Distribute. Campos, 35, of Tulsa, is charged with possessing methamphetamine with intent to distribute. If convicted, the maximum penalty would be 20 years in prison and a $1,000,000 fine. The defendant would also forfeit seized currency and face entry of a criminal forfeiture money judgment. The Tulsa Police Department and the Drug Enforcement Administration are the investigative agencies.

Demetric Andreal Jackson Jr. Mann Act and Interstate Travel and Transportation in Aid of Racketeering Enterprises. Jackson, 24, of Kansas City, Kansas is charged with transporting a woman from Kansas City, Missouri, to Tulsa, with the intent that the woman engage in prostitution. If convicted, the penalty for the Mann Act is not more than 10 years in prison and a $250,000 fine, and the penalty for the racketeering charge is not more than five years in prison and a $250,000 fine. The Tulsa Police Department is the investigative agency.

Frankie O’Neill Lampley Jr. Failure to Register as a Sex Offender. Lampley, 48, of Tulsa, is charged with failure to register as a sex offender after a prior conviction. If convicted, the maximum penalty would be 10 years in prison and a fine of $250,000. The U.S. Marshals Service is the investigative agency.

TULSA, Okla. — Moises Alberto Yanez, 40, of Tulsa, was sentenced by U.S. District Judge Claire V. Eagan on Friday, to serve 240 months in prison for conspiracy to commit money laundering, announced United States Attorney Danny C. Williams Sr. and R. Damon Rowe, Special Agent in Charge of Internal Revenue Service, Criminal Investigation.

According to court documents, from June 2011 through November 2012, Yanez admitted to making rental payments on two properties in Tulsa that were rented for the purpose of storing and distributing marijuana and methamphetamine. Yanez also admitted to making the rental payments using money he received from selling marijuana and methamphetamine, which he and other conspirators received from California, Texas, and elsewhere.

Other defendants who have pleaded guilty and have been sentenced in this investigation on various drug-related offenses are: •           Oscar Fuentes-Diaz
•           Terry Leon King
•           Maicol Nunez-Guardado
•           Jose Robles Arechiga
•           Orlando Keane Jordan
•           Jennifer Madison Ramirez
•           Luis Sigala
•           John Mark McGinley will be sentenced on July 29, 2014

United States District Court Judge Claire V. Eagan also entered a joint and several criminal forfeiture money judgment in the amount of $117,000 against Yanez, Fuentes-Diaz, Nunez-Guardado, and Arechiga.    

The case was investigated by the Drug Enforcement Administration, the Internal Revenue Service, and the Tulsa Police Department. Assistant United States Attorney Janet S. Reincke prosecuted the case on behalf of the United States.

TULSA, Okla. — The results of the June 2014 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.

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

Michael D. Bennett and Gabriel Martinez. Possession of Marijuana with Intent to Distribute and Maintaining a Location for Storing and Distributing Marijuana. Bennett, 29, of Tulsa, and Martinez, 22, of Oklahoma City, are charged with possessing marijuana with intent to distribute. Bennett is also charged with maintaining an apartment for the purpose of storing and distributing marijuana. If convicted, the maximum penalty is five years in prison and a fine of $250,000 for marijuana possession with intent to distribute. In addition, Bennett faces a maximum of 20 years in prison and a $500,000 fine if convicted for maintaining a drug storage space. The defendants would also forfeit seized currency, a firearm and face entry of a criminal forfeiture money judgment. The Federal Bureau of Investigation is the investigative agency.

Ashley Johnson Calhoun. Bank Fraud. Johnson, 41, of Muskogee, is charged with nine counts of committing bank fraud against Arvest Bank, Bank of Oklahoma, and JPMorgan Chase Bank by means of forged checks.  If convicted, the maximum penalty is 30 years in prison and a $1,000,000 fine. The United States Postal Inspection Service is the lead investigative agency.

Marcos Cereceres-Romero. Alien in the United States After Deportation. Cereceres-Romero, 23, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in July of 2008 near Presidio, Texas. If convicted, the maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) is the lead investigative agency.

Oscar Escalera-Duron. Alien in the United States After Deportation. Escalera-Duron, 33, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in October of 2006 near Laredo, Texas. If convicted, the maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) is the lead investigative agency.

Aylediz Leon-Cuba. Possession of Methamphetamine with Intent to Distribute. Leon-Cuba, 34, of Tulsa, is charged with possessing 50 grams or more of methamphetamine with intent to distribute. If convicted, the minimum penalty is five years in prison and the maximum penalty is 40 years in prison along with a $5,000,000 fine. The defendant would also forfeit seized currency and a firearm. The Drug Enforcement Administration is the lead investigative agency.

Heron Marquez Ramirez and Sergio Guadalupe Gonzalez. Drug Conspiracy. Marquez Ramirez, 27, of Oklahoma City, and Guadalupe Gonzalez, 52, of Lancaster, Texas, are charged with conspiring to distribute 500 grams or more of cocaine. If convicted, the minimum penalty is five years in prison and the maximum penalty is 40 years in prison along with a $5,000,000 fine. The defendants would also forfeit a seized Porsche and face entry of a criminal forfeiture money judgment. The Federal Bureau of Investigation is the lead investigative agency.

Ulyssis Ramirez. Possession of Cocaine with Intent to Distribute. Ramirez, 23, of Oklahoma City, is charged with possessing cocaine with intent to distribute. If convicted, the maximum penalty is 20 years in prison and a $1,000,000 fine. The defendant would also forfeit seized currency, a vehicle and face entry of a criminal forfeiture money judgment. The Federal Bureau of Investigation is the lead investigative agency.

Feliciano Saldana-Juarez. Alien in the United States After Deportation. Saldana-Juarez, 48, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in March of 2012 near Brownsville, Texas. If convicted, the maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) is the lead investigative agency.

Gregory Lynn Shrader. Felon in Possession of Firearm and Ammunition. Shrader, 55, of Jay, Oklahoma, is charged with possessing a 12 GA gauge shotgun, a .45 ACP rifle, a 9mm rifle, and ammunition after prior felony convictions in Arkansas. Those convictions include terroristic threatening, theft by receiving, and attempt to manufacture a controlled substance. If convicted, the maximum penalty is 10 years in prison and a $250,000 fine. The defendant would also forfeit three firearms. The Bureau of Alcohol, Tobacco, Firearms and Explosives in conjunction with the Federal Bureau of Investigation investigated this matter.

TULSA, Okla. — United States Attorney for the Northern District of Oklahoma Danny C. Williams Sr. announced today that United States District Court Judge James H. Payne sentenced James Rhea Cooley, a former Regional Human Resource Manager for Newfield Exploration Mid-Continent Inc., a Houston, Texas-based oil and gas company, with offices in Tulsa, Oklahoma, to serve 55 months in Federal prison for wire fraud involving the embezzlement of $696,000 from that company, and tax fraud for failure to report that stolen income resulting in unpaid taxes of $226,089.  Additionally, Cooley was ordered to pay $595,107.46 in restitution to Newfield’s insurance company, Federal Insurance; $105,049.86 to Newfield; $70,300 to ConAgra Foods; and $226,089 to the IRS. An anonymous tipster called the company’s ethics hotline to report Cooley. This prompted an internal investigation leading to a joint FBI and Internal Revenue Service, Criminal Investigation probe of these crimes.

James Rhea Cooley, 45, of Tulsa, was charged by Criminal Information on August 26, 2013, with one-count of wire fraud and three counts of willfully making and subscribing a false federal income tax return.  He pleaded guilty on November 19, 2013, to one count of wire fraud and one count of willfully making and subscribing a false federal income tax return. Cooley worked as the Regional Human Resources Manager at the Tulsa office of Newfield where he was authorized to approve invoices for services provided to the company.

According to court documents filed in the case, from August 2008 to January 2011, Cooley devised and executed a scheme to defraud his then-employer Newfield. In 2008, the defendant created the fictitious consulting company, Total HR Service and Consulting, created a website and opened a bank account for that company. Cooley would then falsify invoices for services that had not been performed, submit them to Newfield and deposit the payment check from Newfield into the fraudulent consulting company’s bank account. Cooley would then spend the embezzled funds for personal expenses that included jewelry, airline tickets, and a Mexican condominium.

In imposing the sentence, Judge Payne also considered additional relevant criminal conduct of Cooley in shaping Cooley’s sentence.  After being terminated for the false invoice scheme at Newfield in February 2011, Cooley obtained a similar job with ConAgra Corporation in Council Bluff, Iowa, where he committed the very same crime.  ConAgra losses totaled approximately $70,000.00.  This second crime occurred from April 2012 until September 2012, after Cooley had already admitted the Newfield fraud to federal investigators and was supposedly cooperating with them.

As part of his sentence, a criminal forfeiture money judgment was entered against Cooley to provide restitution for the victims. The criminal forfeiture money judgment is in the amount of $693,300.
The case was a joint investigation by the Internal Revenue Service, Criminal Investigations and the Federal Bureau of Investigation. Assistant United States Attorneys Charles M. McLoughlin and Catherine Depew prosecuted on behalf of the United States.

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WASHINGTON - Two leaders of a massive computer hacking conspiracy today pleaded guilty in federal court to participating in a plan to hack into the U.S. Navy, the National Geospatial-Intelligence Agency (NGA), and over 50 public and private computer systems to steal thousands of individuals’ personal information, obstruct justice, and damage protected computers, announced U.S. Attorney Danny C. Williams Sr.

Nicholas Paul Knight, 27, of Chantilly, Virginia, and Daniel Trenton Krueger, 20, of Dix, Illinois, pleaded guilty to a one-count information containing the allegations, and each face up to five years in prison, a fine of $250,000, and restitution to the victims. Sentencing is scheduled for August 27, 2014 before U.S. District Judge James H. Payne.

“Cybercriminals think the anonymity of the Internet can obscure their illegal activities and make it impossible to find and apprehend them. That is not true,” said U.S. Attorney Williams. “Criminals cannot hide in cyberspace. We will find you, charge you, and prosecute you to the fullest extent of the law.”

Records indicate that investigators with the Naval Criminal Investigative Service (NCIS), later joined by the Defense Criminal Investigative Service (DCIS), identified Knight and Krueger as the co-founders of a hacking group known as Team Digi7al (pronounced “Digital”), which was responsible for hacking into the U.S. Navy’s Smart Web Move (SWM) database. Prior to this breach, the SWM database stored sensitive personal records, including Social Security numbers, names, and dates of birth, for approximately 220,000 service members. As a result of the breach, over 700 deployed members of the military could not access logistical support for transfers for more than 10 weeks. The servers that stored these records were located in Tulsa, giving rise to the venue in the Northern District of Oklahoma.

The United States advised the court that the defendants, and at least three minors and a citizen of Canada, coordinated their hacking activities over email, IRC chat, and Facebook private messages, including one message in which Knight told Krueger “if anything happens . . . send me a message saying goodbye so we know one of us is caught.” After discovering that Knight regularly accessed the Team Digi7al Twitter account from within the Navy’s network, NCIS cyber investigators conducted a sting operation in a controlled environment aboard the USS Harry S. Truman, the aircraft carrier on which Knight worked as a systems administrator in the nuclear reactor department. During the sting, Knight hacked into a fake database, which he believed to be real while NCIS monitored his activity.

According to the United States, Knight and Krueger later confessed to leading the Team Digi7al conspiracy. Victims of the Team Digi7al conspiracy include the following organizations: 

• U.S. Navy                                                                                                      
• U.S. National Geospatial-Intelligence Agency
• U.S. Department of Homeland Security
• MobiTv
• Autotrader.com
• Harvard University
• Johns Hopkins University
• Kawasaki
• Library of Congress
• Los Alamos National Laboratory
• Louisville University
• MeTV Network
• Montgomery Police Department (Alabama)
• Peruvian Ambassador’s email (in Bolivia)
• San Jose State University
• Stanford University
• Toronto Police Service (Canada)
• Ultimate Car Page
• University of Alabama
• University of British Columbia (Canada)
• University of Nebraska-Lincoln
• World Health Organization

The case was investigated by the NCIS Atlantic Cyber Operations office in Norfolk with the cooperation and assistance of the DCIS Cyber Field Office and other federal, state, and local agencies. The case is being prosecuted by Assistant U.S. Attorney Ryan Souders.

TULSA, Okla. — A former Tulsa businessman was sentenced today in Federal court to 27 months in prison for having defrauded ONB Bank out of more than $200,000, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.

Tommy Craig Conaway, 59, now of Blackwell, pleaded guilty to bank fraud, admitting that in February 2004 he misrepresented the value of collateral that his company, CCR Investments, LLC, pledged to ONB Bank in order to draw upon its line of credit at the bank.

In imposing the sentence, U.S. District Court Chief Judge Gregory K. Frizzell considered other occasions in which Conaway defrauded ONB Bank by misrepresenting collateral available to secure his company’s line of credit. In addition, the court considered Conaway’s conduct in defrauding the Bank of Oklahoma on lines of credit extended to other businesses managed by Conaway, causing a loss of nearly $2.5 million to BOK. 

The court ordered Conaway to pay restitution to both banks in a total amount of over $2.7 million. In addition to his prison term, Conaway was ordered to forfeit $290,962. 

The case investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Kevin C. Leitch, Jeffrey A. Gallant and Catherine Depew.   

TULSA, Okla. — United States Attorney for the Northern District of Oklahoma, Danny C. Williams Sr., announced today that a former Boy Scouts of America Lodge Chief and Scout leader was sentenced in Federal court for receiving child pornography.

Kevin D. Woolsey, 22, of Jenks, was sentenced by United States Court Judge Claire V. Eagan to serve 84 months, to be followed by 10 years of supervised release, after a one-count Information charge for Receipt of Child Pornography. Woolsey was charged by sealed Information on September 19, 2013, and entered a guilty plea on November 5, 2013. The defendant targeted males between 14 to 16 years of age who primarily participated in the Boy Scouts or who were members of a church youth group.

“The defendant used his position of authority to exploit and manipulate children,” said U.S. Attorney Williams. “My office will continue to work with our law enforcement partners to punish those who would prey on the most vulnerable in our communities.”

Specifically, Woolsey admitted that on or about May 19, 2012, he received one or more visual depictions involving the use of minors engaging in sexually explicit conduct. Woolsey created a fictitious Facebook page that falsely purported to belong to a minor female known to the victim.  Woolsey established communication with the victim through the Facebook page, then engaged the victim in sexually-oriented conversation and sent the victim pornographic images. Posing as a minor female, Woolsey requested photos from the victim, who sent the photos via the internet to an e-mail address Woolsey provided.

Woolsey received pornographic images from at least 11 minors. He created at least 7 fictitious Facebook accounts posing as different female minors from the church youth group.

The case was investigated by the U.S. Immigration and Customs Enforcement and prosecuted by Assistant United States Attorney Jeffrey Gallant.

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. For more information about Project Safe Childhood and Internet safety education, visit www.usdoj.gov/psc.

TULSA, Okla. — The results of the May 2014 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.

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

Eligio Cortez-Ayvar. Alien in the United States After Deportation. Cortez-Ayvar, 25, is charged with having returned to the United States unlawfully after being deported in April 2011 near Calexico, California. If convicted, the maximum penalty would be twenty (20) years imprisonment and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the lead agency.

Jose Duran-Olmos. Alien in the United States After Deportation. Duran-Olmos, 33, is charged with having returned to the United States unlawfully after being deported in July 2013 near Eagle Pass, Texas. If convicted, the maximum penalty would be twenty (20) years imprisonment and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the lead agency.

Abel Guerra-Morataya. Alien in the United States After Deportation. Guerra-Morataya, 33, is charged with having returned to the United States unlawfully after being deported in June 2006 near Brownsville, Texas. If convicted, the maximum penalty would be twenty (20) years imprisonment and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the lead agency.

Jose Jesus Hernandez-Flores. Possession with Intent to Distribute 500 Grams or more of Methamphetamine and Alien in the United States After Deportation. Hernandez, 32, is charged with possessing more than 500 grams of methamphetamine with intent to distribute. He is also charged with having returned to the United States unlawfully after being deported in March 2011 near Del Rio, Texas. If convicted, the statutory minimum mandatory penalty is ten (10) years imprisonment and the maximum statutory penalty is life imprisonment and a fine up to $10,000,000 for the drug charge. The maximum penalty for Hernandez-Flores being in the United States after deportation is twenty (20) years imprisonment and a fine up to $250,000. The Drug Enforcement Administration and Tulsa Police Department are the lead agencies.

Juan Herrera. Alien in the United States After Deportation. Herrera, 38, is charged with having returned to the United States unlawfully after being deported in December 2010 near Del Rio, Texas. If convicted, the maximum penalty would be twenty (20) years imprisonment and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the lead agency.

Alan Wade Hutchinson. Felon in Possession of a Firearm and Ammunition. Hutchinson, 32, of Inola, is charged with possessing a 9mm caliber pistol and ammunition after prior felony convictions. If convicted, the statutory maximum penalty is ten (10) years imprisonment and a fine of $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the lead agency.

Matthew James Mathis. Felon in Possession of a Firearm and Ammunition. Mathis, 31, of Tulsa, is charged with possessing a 9mm caliber pistol and ammunition after a prior felony conviction. If convicted, the statutory maximum penalty is ten (10) years imprisonment and a fine of $250,000. The investigation is a joint effort of the Muscogee (Creek) Nation Lighthorse Police and the Bureau of Indian Affairs.

Josue Saldierna-Maldonado. Alien in the United States After Deportation. Saldierna-Maldonado, 26, is charged with having returned to the United States unlawfully after being deported in December 2012 near Laredo, Texas. If convicted, the maximum penalty would be twenty (20) years imprisonment and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the lead agency.

TULSA, Okla. — United States Attorney Danny C. Williams Sr. announced guilty pleas in Federal court by two men on charges related to sex trafficking stemming from investigations by the Tulsa Police Department’s Vice Unit.

Damian Dashane Wardell, 39, of Tulsa, pleaded guilty before United States District Court Judge Claire V. Eagan to Sex Trafficking of a Child. Wardell admitted he maintained and prostituted a 16-year-old female at a local Tulsa area motel. Tulsa Police Department officers found and arrested Wardell at the motel after the victim’s mother provided information. Police discovered the victim and two other juvenile females in the motel room. Wardell faces a minimum sentence of ten (10) years and up to life imprisonment. Sentencing is set for August 6, 2014.

Wardell’s plea follows a guilty plea on April 25, 2014 by Terrance Cortez Whitfield, 36, of Muskogee, to a single-count Information charging Coercion and Enticement of a Minor. Whitfield also faces a minimum sentence of ten (10) years and up to life imprisonment and his sentencing is set for August 4, 2014, before United States District Judge Claire V. Eagan. Whitfield was arrested following a routine traffic stop, after which police officers discovered a juvenile female in Whitfield’s vehicle. An ensuing investigation led to evidence that Whitfield used his cell phone and the Backpage.com website to entice and induce the juvenile female to engage in prostitution.

United States Attorney Williams commended the excellent work by the Tulsa Police Department’s Vice Unit. Assistant United States Attorneys Trent Shores and Clint Johnson prosecuted the matters on behalf of the United States of America.

TULSA, Okla. — Today, the United States charged two men for their participation in a conspiracy to hack into the computer systems of over 30 public and private organizations, including the United States Navy and National Geospatial-Intelligence Agency, announced Northern District of Oklahoma United States Attorney Danny C. Williams Sr.

The single-count Information alleges that Nicholas Paul Knight, 27, of Chantilly, Virginia, and Daniel Trenton Krueger, 20, of Salem, Illinois, conspired to hack computers and computer systems as part of a plan to steal identities, obstruct justice, and damage a protected computer.

“The Navy quickly identified the breach and tracked down the alleged culprits through their online activity, revealing an extensive computer hacking scheme committed across the country and even abroad,” said U.S. Attorney Danny C. Williams. “We aggressively pursue individuals who steal personal information, especially when they victimize the men and women who bravely defend our country and our Constitution.”

According to the Information, in June 2012, the Naval Criminal Investigative Service (“NCIS”) detected a breach of the U.S. Navy’s Smart Web Move (“SWM”) database. Prior to this breach, the Navy used SWM to manage transfers for service members of all branches of the military. The SWM database stored sensitive personal records, including Social Security numbers, names, and dates of birth, for approximately 220,000 service members. The servers that stored these records were located in Tulsa, giving rise to the venue in the Northern District of Oklahoma.

The SWM hackers were initially known only by their online aliases as members of a hacking group called Team Digi7al (pronounced “Digital”). However, the NCIS investigation, later assisted by investigators of the Defense Criminal Investigative Service (“DCIS”), identified Knight and Krueger as the alleged hackers.

The Information alleges that Knight, Krueger, and other Team Digi7al co-conspirators hacked the computer systems of over thirty public and private organizations to steal sensitive information. The victims included the following organizations:

• U.S. Navy
• U.S. National Geospatial-Intelligence Agency
• U.S. Department of Homeland Security
• AT&T U-verse
• Autotrader.com
• Harvard University
• Johns Hopkins University
• Kawasaki
• Library of Congress
• Los Alamos National Laboratory
• Louisville University
• MeTV Network
• Montgomery Police Department (Alabama)
• Peruvian Ambassador’s email (in Bolivia)
• San Jose State University
• Stanford University
• Toronto Police Service (Canada)
• Ultimate Car Page
• University of Alabama
• University of British Columbia (Canada)
• University of Nebraska-Lincoln
• World Health Organization

The Information also charges that Knight served as the criminal organization’s self-proclaimed leader and publicist, while Krueger completed the technical hacking work of the SWM database and claimed to do so “out of boredom.” One conspirator stated online that the group was “somewhat politically inclined to release the things [they had],” but also because it was “fun, and we can.” After hacking these organizations, the defendants and other conspirators posted links to the stolen information on Team Digi7al’s Twitter account to make the private information available to the public.

At the time of the hacking attacks, Knight was an active duty enlisted Navy member assigned to the nuclear aircraft carrier USS Harry S. Truman as a systems administrator in the nuclear reactor department. Krueger was a student at an Illinois community college where he studied network administration.

The charges contained in the Information are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

If convicted, Knight and Krueger face a maximum penalty of five years of imprisonment and a $250,000 fine, in addition to paying restitution to the victims of the crime. A trial date has not been set.

The case was investigated by the NCIS Atlantic Cyber Operations office in Norfolk, Virginia with the cooperation and assistance of the DCIS Cyber Field Office and other federal, state, and local agencies. The case is being prosecuted by Assistant United States Attorney Ryan Souders, the Computer Hacking and Intellectual Property crimes prosecutor for the United States Attorney’s Office.

U.S. v. Nicholas Paul Knight and Daniel Trenton Krueger

TULSA, Okla. — United States Attorney Danny C. Williams Sr. announced today that a Mannford woman had pleaded guilty in federal court to fraudulently obtaining Federal Emergency Disaster Agency (FEMA) disaster assistance benefits made available to victims of the Mannford wildfires.

Kerry Lynn Rowell, 42, of Mannford, pleaded guilty before United States District Court Chief Judge Gregory K. Frizzell to a charge that she had made false statements to a Federal agency. Rowell faces the maximum statutory penalty of five (5) years imprisonment and a fine of $250,000. A sentencing date has been set for August 12, 2014.

According to court documents, from August 23, 2012 to September 23, 2013, Rowell made false statements and provided false documents to support her application for FEMA disaster assistance. Rowell claimed her primary residence was destroyed, when in fact she did not reside at that residence. The house was actually owned by her mother and was uninhabited, dilapidated, and had no utility service. None of the personal property she listed on the FEMA application was in the abandoned house when it was destroyed by the fire. Rowell fraudulently received $31,400 in FEMA disaster assistance benefits.

“Anyone with information that an individual may have defrauded the government in connection with a disaster may call the toll-free Department of Homeland Security’s Office of Inspector General Hotline at 1-800-323-8603,” said U.S. Attorney Williams. “Complaints may be made anonymously and confidentially via the official website (www.oig.dhs.gov), or by mailing DHS Office of Inspector General/MAIL STOP 0305, Attention: Office of Investigations—Hotline, 245 Murray Lane SW, Washington, DC 20528.”

The case was investigated by the U.S. Department of Homeland Security’s Office of the Inspector General and the United States Secret Service. Assistant United States Attorney Charles M. McLoughlin prosecuted on behalf of the United States.

If someone has any questions about how assistance benefits may be spent, has made a mistake when reporting damage, or has misrepresented losses, he or she may correct the situation immediately by calling the toll-free FEMA Helpline at 1-800-621-FEMA or 1-800-462-7585 (TTY) for the speech or hearing impaired.

TULSA, Okla. — A former controller of a trucking dealership was sentenced on Thursday to serve 60 months for more than $1.5 million in bank fraud and tax evasion, announced U.S. Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. The 60 month sentence is the maximum prison term for the tax evasion charge.

James Lamar Gresham, 52, of Tulsa, was sentenced to serve 60 months in federal prison by U.S. District Judge James H. Payne for one count each of bank fraud and tax evasion. At the time of the scheme, Gresham worked as a controller for Frontier International Trucks where he had access to financial books and records, and was familiar with the company’s bank accounts.

“This sentencing should be a clear message to everyone that tax evasion is a serious offense and carries serious consequences. All tax payers must report all of their income and pay all of the taxes owed to the United States,” said U.S. Attorney Williams.

According to court documents, from July 30, 2007 to May 2011, as part of the scheme, Gresham would forge company checks made payable in his name, then deposit the checks into a personal bank account. Gresham forged more than 548 company checks and obtained $1,583,157.15 from the company’s bank accounts.

In addition, during the 2010 calendar year, Gresham failed to report the additional income gained from the scheme to the Internal Revenue Service. He evaded paying a total of $511,627 in taxes owed to the United States.

The case was investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation and was prosecuted by Assistant United States Attorney Jeffrey Gallant on behalf of the United States.

TULSA, Okla. — A Tulsa man pleaded guilty in federal court Thursday for possession of child pornography, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma.

Mark McDonough, 33, of Tulsa, pleaded guilty before U.S. District Court Chief Judge Gregory K. Frizzell to one count of possession and attempted possession of child pornography.

According to documents filed in the case, on November 20, 2013, McDonough possessed child pornography depicting minors who had not obtained 12 years of age engaging in sexually explicit conduct. He admitted to downloading the images from the internet.

The statutory maximum penalty is 20 years imprisonment, and a fine of $250,000. Sentencing has been set for July 17, 2014.

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jeffrey Gallant on behalf of the United States.

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. For more information about Project Safe Childhood and Internet safety education, visit www.usdoj.gov/psc.

TULSA, Okla. — The results of the April 2014 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.

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

Steven M. Allen. Failure to Register as a Sex Offender. Allen, 41, of Miami, Okla., is charged with failing to register as a sex offender after prior convictions in 2009. If convicted, the maximum penalty would be ten (10) years imprisonment and a $250,000 fine. The United States Marshals Service is the lead investigative agency.

Jose Guadalupe Becerra-Molina. Possession of Firearms and Ammunition by Alien Illegally in United States, Possession of Methamphetamine with Intent to Distribute, Possession of Firearms in Furtherance of a Drug Trafficking Crime, and Alien in the United States After Deportation. Becerra-Molina, 34, unlawfully in the United States, is charged with possessing three (3) pistols, two (2) revolvers, and ammunition as an illegal alien; possessing methamphetamine with intent to distribute; possessing two (2) pistols in furtherance of a drug trafficking crime; and being illegally in the United States after being deported in June 2007 near Laredo, Texas. If convicted, the penalty for possessing the pistols and ammunition as an illegal alien would be a ten (10) year maximum sentence of imprisonment and a $250,000 fine; the penalty for possession of methamphetamine with intent to distribute would be twenty (20) years imprisonment and a $1,000,000 fine; the penalty for possession of firearms in furtherance of a drug trafficking crime would be a minimum of five (5) years imprisonment to life; and the penalty for re-entering the United States after deportation would be a maximum twenty (20) years imprisonment and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Tulsa Police Department, and the U.S. Immigration and Customs Enforcement are the lead agencies.

James Dawson Bishop. Felon in Possession of Firearms and Ammunition, Carrying a Firearm in Furtherance of a Drug Trafficking Crime, and Possession of Methamphetamine with Intent to Distribute. Bishop, 34, of Tulsa, is charged on different dates with carrying various firearms and ammunition after having been previously convicted of a felony.  Additionally, Bishop is charged with Carrying a Firearm in Relation to and Possession of a Firearm in Furtherance of a Drug Trafficking Crime and Possession of Methamphetamine with the Intent to Distribute.  If convicted, Bishop could be sentenced to a mandatory minimum of five years and up to life imprisonment with a $1,000,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Bureau of Indian Affairs, and the Muscogee (Creek) Nation Lighthorse Tribal Police are the lead agencies.

Christopher Lee Burr and Dale Estus Sutton III.Felon in Possession of Firearms and Ammunition. Burr, 27, of Ponca City,  and Sutton, 31, of Wagoner, are charged with possessing firearms after a felony conviction. If convicted, the maximum penalty would be ten (10) years imprisonment and a $250,000 fine. The Indictment is a result of a joint investigation by the Muscogee (Creek) Nation Lighthorse Police, Bureau of Indian Affairs, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Michael Wayne Cauldwell. Felon in Possession of a Firearm and Ammunition. Cauldwell, 35, of Tulsa, is charged with possessing a .40 caliber pistol and ammunition after prior felony convictions in 2002 and 2003. If convicted, the maximum penalty would be ten (10) years imprisonment and a $250,000 fine. The U.S. Immigration and Customs Enforcement, Homeland Security Investigations is the lead agency.   

Francis Harry Dishmon. Attempted Bank Robbery and Killing a Person While Attempting to Avoid Apprehension. Dishmon, 51, of Tulsa, is charged with attempting to rob the IBC Bank in Miami, Oklahoma on August 28, 2013, and killing a man while attempting to avoid apprehension for that attempted robbery. If convicted, the maximum penalty for the attempted bank robbery would be twenty (20) years imprisonment and a $250,000 fine; and the penalty for killing a person while attempting to avoid apprehension would be life imprisonment. The Federal Bureau of Investigation is the lead agency.  

Rafael Gonzalez. Felon in Possession of Firearm and Ammunition. Gonzalez, 21, of Tulsa, is charged with possessing a .25 caliber pistol and ammunition after prior felony convictions in 2011 and 2013. If convicted, the maximum penalty would be ten (10) years imprisonment and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the lead agencies.

Mark Dee Gragg. Felon in Possession of Firearm. Gragg, 51, of Cushing, is charged with possessing a .22 caliber revolver after prior felony convictions including Threats Against the President. If convicted, Gragg would face a maximum sentence of ten (10) years imprisonment and a $250,000 fine. This case was investigated by the Sand Springs Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Andre Ralph Haymond. Failure to Register as a Sex Offender. Haymond, 25, of Tulsa, is charged with failing to register as a sex offender after possession of child pornography convictions in 2010. If convicted, the maximum penalty would be ten (10) years imprisonment and a $250,000 fine. The United States Marshals Service is the lead investigative agency.  

Juan Lopez-Martinez. Alien in the United States After Deportation. Martinez, 30, is charged with having returned to the United States unlawfully after being deported in August 2008 near Del Rio, Texas. If convicted, the maximum penalty would be twenty (20) years imprisonment and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the lead agency.     

Restituto L. Morales. Possession of Heroin with Intent to Distribute, Possession of Cocaine with Intent to Distribute, Possession of Methamphetamine with Intent to Distribute, and Distribution of Methamphetamine. Morales, 51, of Homestead, Florida, is charged with possessing more than one (1) kilogram of heroin, more than five (5) kilograms of cocaine, and more than 500 grams of methamphetamine all with intent to distribute. Morales is also charged with distribution of more than 500 grams of methamphetamine. If convicted, the mandatory minimum penalty would be ten (10) years imprisonment, the maximum penalty would be life imprisonment, and a $10,000,000 fine. The Tulsa County Sheriff’s Office and Drug Enforcement Administration are the lead agencies.     

Ramona Lynn Peters. Theft of Government Property. Peters, 55, of Terlton, Okla., is charged with unlawfully taking $32,016.86 of a deceased family member’s social security benefits from January 2010 to June 2013. If convicted, the maximum penalty would be ten (10) years imprisonment and a $250,000 fine. The Social Security Administration, Office of Inspector General is the lead investigative agency.

Jorge Ramirez-Gomez. Alien in the United States After Deportation. Ramirez-Gomez, 21, is charged with having returned to the United States unlawfully after being deported in November 2013 near Del Rio, Texas. If convicted, the maximum penalty would be twenty (20) years imprisonment and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the lead agency.     

Salvador Rodriguez-Ramirez. Alien in the United States After Deportation. Rodriguez-Ramirez, 36, is charged with having returned to the United States unlawfully after being deported in March 2009 near Del Rio, Texas. If convicted, the maximum penalty would be twenty (20) years imprisonment and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the lead agency. 

Billy Ray Willis. Theft of Government Property. Willis, 57, of Stillwater, is charged with stealing $15,739 in Social Security Supplemental Security Income from September 2010 to August 2013. If convicted, the maximum penalty would be ten (10) years imprisonment and a $250,000 fine. The Social Security Administration, Office of Inspector General is the lead agency.    

TULSA, Okla. — Jesus Uzziel Rodriguez, 31, of Hayward, California, was sentenced Tuesday by U.S. District Judge John E. Dowdell to 20 years in federal prison for drug conspiracy and possessing 500 grams or more of methamphetamine with intent to distribute, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. A federal jury convicted Rodriguez after a five-day trial.

The charges stemmed from an investigation by the Oklahoma Bureau of Narcotics and Dangerous Drugs Control (OBNDD).

According to court documents, from May to July 2013, Rodriguez, Vincente Chipres Valencia, 34, of East Palo Alto, California, and Francisco Reyes-Sanchez, 34, of Mounds, Oklahoma, arranged for a dealer in California to provide methamphetamine to be sold in Tulsa. The defendants conspired to distribute approximately four (4) pounds of methamphetamine at a value of approximately $50,000. On July 11, 2013, Rodriguez, Valencia, and Reyes-Sanchez did in fact deliver approximately four (4) pounds of methamphetamine during an OBNDD sting operation.

Rodriguez was charged by a federal grand jury on August 7, 2013. Valencia pleaded guilty to the same charges on October 31, 2013, and Reyes-Sanchez pleaded guilty to the charges on November 6, 2013.

The case was prosecuted by Assistant United States Attorney Robert T. Raley.

TULSA, Okla. – A Glenpool woman pleaded guilty on Wednesday to forgery and tax charges, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.

Christi Bender-Anthony, 37, of Glenpool, entered pleas of guilty before U.S. District Court Judge John E. Dowdell to one count of making, uttering and possessing a forged security and one count of subscribing a false tax return.

According to court documents, from 2010 to 2012, while employed as an office manager at Process Products & Service Co., Bender-Anthony forged over 100 company checks for her own benefit, resulting in a loss of over $300,000. In addition, Bender-Anthony admitted to the court that she filed false federal tax returns for the years 2010, 2011, and 2012 by knowingly failing to report the income she obtained by means of the checks she forged. Bender-Anthony admitted that she owed over $100,000 in taxes as a result.

Bender-Anthony faces maximum terms of imprisonment of ten years on the forgery charge and three years on the tax charge, in addition to possible fines. The sentencing date has been scheduled for July 2, 2014.

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Kevin C. Leitch prosecuted this case on behalf of the United States of America.

TULSA, OKLAHOMA – A Tulsa man pleaded guilty today to brandishing a gun during a robbery at an Indian gaming establishment, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma.

Dominique Amoia McDowell II, age 19, entered a plea of guilty before U.S. District Court Judge John Dowdell to the charge of Brandishing a Firearm During and in Relation to a Crime of Violence .  This matter was prosecuted in United States District Court because the armed robbery occurred in Indian Country.

On January 12, 2014, McDowell approached a Native American woman in the Osage Nation Casino Tulsa parking lot and robbed her of $600 at gunpoint. Osage Nation law enforcement and casino security officials used their collective resources to identify and find McDowell immediately after the robbery. The officers found McDowell inside the casino gambling with the money he had just stolen. Osage Nation Police officers took McDowell into custody and recovered $540 and a firearm.

“The United States is committed to working together with our tribal law enforcement partners to hold accountable those who commit violent crimes in Indian Country.  I commend the Osage Nation Police Department and Bureau of Indian Affairs for their quick response and joint investigative efforts,” commented United States Attorney Williams.

McDowell faces a mandatory minimum sentence of seven years and up to life imprisonment. Parole has been abolished in the Federal system.

Assistant United States Attorneys Clint Johnson and Trent Shores prosecuted this case on behalf of the United States of America.

TULSA, Okla. — A Sapulpa man pleaded guilty in federal court today to possessing child pornography, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. A total of at least 20,116 images and videos were found in the defendant’s possession.

Paul D. Edwards, 64, of Sapulpa, entered a plea of guilty before U.S. Magistrate Judge Paul J. Cleary to one (1) count of possession and attempted possession of child pornography and five (5) counts of receipt and attempted receipt of child pornography. Edwards is a former Certified Public Accountant for local municipalities and school districts. He has been unemployed since 2008.

According to court documents, in October of 2011, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Philadelphia office initiated an investigation into individuals utilizing an international website to distribute and collect child pornography. Between February and March of 2013, the HSI obtained log files from Russian law enforcement regarding a user profile which was later traced to Edwards’ residence. There were 20,116 images and videos collected from Edwards’ residence.

Edwards was charged on November 5, 2013. For Count 1, Edwards faces a maximum penalty of twenty (20) years and a $250,000 fine.

The case was investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). The case is being prosecuted by Assistant United States Attorney Jeffrey Gallant on behalf of the United States.

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.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."