District of Vermont

United States Attorney Eric Miller has announced his resignation, effective February 10, 2017. In 2015, Miller was appointed to his position by President Barack Obama on the recommendation of Senator Patrick Leahy and was confirmed unanimously by the United States Senate. Since then, he has led the United States Attorney’s Office for the District of Vermont, which has 45 employees, including 20 attorneys, who enforce all federal criminal and civil laws in the state.

In announcing his departure, Mr. Miller said, “Serving as Vermont’s United States Attorney has been the highest honor of my career, and I am grateful for the trust placed in me by President Obama, Senator Leahy, and the people of Vermont.” Miller praised his colleagues at the United States Attorney’s Office and commended the work they do on behalf of the people of Vermont. “This is an amazing group of lawyers and staff. The single greatest joy of this job has been supporting their skilled advocacy on positions I am passionate about and which also make life better for Vermonters.”

During Miller’s tenure, the United States Attorney’s Office increased its focus on a statewide, collaborative approach to confronting Vermont’s heroin crisis. Through its Vermont Heroin Initiative, the office partnered with federal, state, and local law enforcement agencies, healthcare providers, and non-profits to encourage the most effective mix of prosecution, treatment, and education to stem the flow of opiates into the state. Over the past two years, the United States Attorney’s Office has successfully prosecuted scores of significant heroin trafficking conspiracies. The office prioritized the pursuit of human trafficking charges in association with its drug prosecutions. It also produced an award-winning public service announcement and informational campaign designed to increase public awareness of the danger of human trafficking and to provide trafficking victims and survivors with appropriate services. Miller expressed special thanks to the FBI, DEA, ATF, Vermont State Police, HSI, Border Patrol, Secret Service, USMS, CBP, and all of the other federal, state, local law enforcement agencies working closely with his office and with one another to accomplish their joint mission.

Under Miller’s leadership, the United States Attorney’s Office also expanded its civil rights enforcement program, adding a Civil Rights Outreach Specialist and an Assistant United States Attorney dedicated to identifying, investigating, and remedying federal civil rights violations in Vermont. Together with the office’s Civil Rights Coordinator, they engage in outreach designed to build trust and relationships between the United States Attorney’s Office and the communities it serves.

Islam Hassan, the Imam of the Islamic Society of Vermont, said, “Eric and his colleagues have worked to build bridges between their office and the Islamic Society of Vermont. They have become familiar faces at our mosque, and we deeply appreciate their commitment to building relationships with our community.” Through these efforts and others, the office has established itself as a statewide leader in protecting Vermonters’ civil rights.

Throughout his time in office, Mr. Miller has been a visible presence in Vermont’s communities, championing the criminal justice initiatives promoted by President Obama and Attorney General Loretta Lynch through working groups, panel discussions, speeches, and one-on-one meetings with Vermont’s elected leaders, local police departments, and residents.

Rutland’s Mayor, Christopher Louras, said, “Eric and his office have invested enormous energy in Rutland. They have worked with the City to transform former drug houses into safe, affordable, owner-occupied homes that grow our neighborhoods. And when I announced Rutland’s plans to welcome Syrian refugees to our community, Eric publicly voiced his strong support and committed the resources of his office to protecting all Rutland residents, including the newest among us.”

Summing up his thoughts on the Department he is leaving, Miller said, “Whenever I think about the core mission of this place, I always return to a formulation I first heard from Deputy Attorney General Sally Yates: Although much or our most important work involves prosecuting people who break the law, we are not just the Department of Prosecutions, or even the Department of Public Safety. We are the Department of Justice. And I know the men and women of this office will continue to work every day to deliver on the promise of justice for all Vermonters.”

Miller has not yet determined his future professional plans.

The Office of the United States Attorney for the District of Vermont announced that Matthew T. Martin, 32, of Weathersfield, Vermont, was sentenced today to a prison term of fifteen years, followed by five years of supervised release, and $25,514 in restitution. United States District Court Judge J. Gavin Murtha imposed the sentence in District Court in Brattleboro and noted that he rarely sees sentences of this length but that the circumstances of this case warranted such a result.

Martin had previously pleaded guilty to a Superseding Information that consolidated eight separate robberies into a single case. He was sentenced today on each of the robberies to eight separate prison terms of 180 months, each to run concurrently.

As charged in the Superseding Information, on January 28, 2015, Martin robbed a branch of the Windsor County South Credit Union in Springfield Vermont. During the commission of this robbery, Martin indicated to the teller that he had a gun, although he did not display a firearm. Martin stole $2,596 from the Credit Union in this incident.

On February 7, 2015, Martin robbed a Shell gas station in Ludlow, Vermont. During the commission of this robbery, Martin pointed a firearm at the gas station clerk and made off with approximately $200.

On February 17, 2015, Martin robbed a branch of the Citizens Bank in Springfield, Vermont. During the commission of this robbery, Martin again indicated that he had a gun, although he did not display a firearm. During this incident, Martin wore a fake beard to disguise his identity and managed to steal $5,744 from the bank.

On November 11, 2015, Martin robbed the Greater Falls Pharmacy in Bellows Falls, Vermont, pocketing tablets containing Oxycodone and OxyContin. Again, Martin indicated that he had a gun, although he did not display one.

On December 1, 2015, Martin took his crime spree into New Hampshire, committing an armed robbery of a branch of the Mascoma Savings Bank in Charlestown, New Hampshire. During this robbery, Martin displayed a BB gun that resembled a firearm and twice pointed the weapon at the teller. Martin was able to steal $4,700 during this incident.

On December 4, 2015, Martin committed an armed robbery at a branch of the TD Bank North in Loudon, New Hampshire. Again, Martin displayed a BB gun that resembled a firearm. Martin made off with $3,200 as proceeds of this robbery.

On December 14, 2015, Martin committed an armed robbery of a branch of the People’s United Bank in Brattleboro, Vermont. In instructing the teller to give him all of the money in the cash drawer, Martin brandished a BB gun that resembled a firearm and showed the teller a clay “glob” embedded with a cell phone connected to the clay via black wires that he claimed was a bomb. Martin made off with $3,791 from the bank. During this bank robbery, Martin was disguised as a woman.

A week later, on December 21, 2015, Martin committed an armed robbery of a branch of the Heritage Family Credit Union in Ludlow, Vermont. Again, Martin was armed with a BB gun that resembled a firearm, which he pointed at two tellers and a customer. Martin made off with $4,633 as a result.

In late December 2015, Martin surrendered to law enforcement after the U.S. Marshals Service publicly named him a “Fugitive of the Week.”

The collaborative team that investigated the crimes committed by Martin included federal, state, and local law enforcement agents, including agents from the Federal Bureau of Investigation; the U.S. Marshals Service; the Vermont State Police; the New Hampshire State Police; and the police departments of Brattleboro, Springfield, Ludlow, and Bellows Falls.

In addition to the agents that investigated Martin’s crimes, United States Attorney Eric Miller also thanked law enforcement partners at the U.S. Attorney’s Office in New Hampshire; the Windsor County State’s Attorney’s Office; the Windham County State’s Attorney’s Office; the County Attorney’s Office in Sullivan County, New Hampshire; and the County Attorney’s Office in Merrimack County, New Hampshire, for their cooperation and collaboration.

The United States was represented in this matter by Assistant U.S. Attorneys Kunal Pasricha and Abigail Averbach. Matthew Martin was represented by attorney Jordana Levine.

The Office of the United States Attorney for the District of Vermont announced today that Loreto Kudera, age 45, and Hazel Kudera, age 43, a married couple from New York, New York, were each sentenced to two years of probation and a $25,000.00 fine following their convictions in an immigration fraud scheme. The Kuderas previously paid a $1 million forfeiture penalty representing ill-gotten gains from the scheme.

On June 9, 2016, the Kuderas pleaded guilty to charges that they conspired to commit immigration fraud. According to the public record, Hazel Kudera owns several medical staffing agencies in New York specializing in providing nursing professionals to hospitals, outpatient and skilled nursing facilities. She and her husband, Loreto Kudera, then a lawyer at the Law Offices of Barry Silberzweig, in New York, New York, provided false and fraudulent information to the U.S. Citizenship and Immigration Services in St. Albans, Vermont when applying for H1-B visas for foreign nurses.

The H-1B visa program permits an employer to petition on a behalf of a foreign national beneficiary to enter the United States for the specific purpose of working for the employer in a specialty occupation. There are a limited number of H-1B visas available each year, and the purpose of the program is to ensure that these visas go to legitimate beneficiaries to fill specialty positions from a qualified work force. Working as a general RN or LPN is not considered a specialty occupation by the U.S. Citizenship and Immigration Service. Knowing this, Hazel Kudera and Loreto Kudera falsely stated that these foreign nurses, mostly from the Philippines, would be working in specialty occupations at prevailing wage rates when, in fact, they were going to work as LPNs or RNs at much lower rates, mostly at nursing homes. Hazel Kudera and Loreto Kudera profited from this scheme from the filing fees they collected from the beneficiaries as well as from the health care facilities which were paying fees to the medical staffing agencies owned by Hazel Kudera. The Kuderas admitted that they submitted 100 or more fraudulent petitions as part of their scheme. As a result of their convictions, the Kuderas also forfeited $1,000,000 in illegal proceeds to the United States.

Today, Judge J. Garvan Murtha sentenced the Kuderas to each serve two years of probation and to each pay an additional $25,000.00 fine.

The United States Attorney commended the investigative efforts of the United States Department of State, Diplomatic Security Service, the United States Department of Labor Office of Inspector General, Office of Labor Racketeering and Fraud, and the United States Department of Homeland Security, Homeland Security Investigations, in Boston, Massachusetts, who jointly spearheaded the investigation. The United States Attorney also wishes to thank the United States Citizenship and Immigration Service, Security Fraud Division, at the Vermont Service Center in St. Albans, Vermont for their assistance with the investigation.

The United States was represented in the investigation, plea, and forfeiture stages of the case by Assistant U.S. Attorney Heather E. Ross and at sentencing by First Assistant U.S. Attorney Eugenia Cowles. Hazel Kudera is represented by Richard Willstatter of Green & Willstatter, White Plains, New York and Loreto Kudera is represented by Marc Fernich of New York, New York.

The United States Attorney for the District of Vermont announced that three residents of Brooklyn, New York were recently sentenced in United States District Court in Brattleboro following their guilty pleas to charges involving credit card fraud. Today, U.S. District Judge J. Garvan Murtha sentenced Wen Ping Chen, 39, who was the organizer of this conspiracy, to 12 months plus one day of imprisonment. Two lower-level participants in the conspiracy, Kewang Lin, 38, and Shao Qing Chen, 28, were sentenced last week to terms of probation. Wen Ping Chen was ordered to serve three years of supervised release upon completion of his prison term. The three defendants were ordered to pay restitution in the total amount of $25,600. The court ordered that Wen Ping Chen surrender to the Bureau of Prisons on April 4 to begin serving his sentence.

On October 15, 2015, a federal grand jury in Burlington returned a three-count indictment charging Wen Ping Chen with conspiring to commit access device fraud, possessing 15 or more counterfeit access devices, and using counterfeit access devices. In 2014, the grand jury had charged Kewang Lin and Shao Chen with related crimes. The prosecution stemmed from an incident in August 2014 which resulted in the arrests in South Burlington of co-conspirators Shao Chen and Lin.

According to the indictment and court records, between about 2013 and August 22, 2014, Wen Ping Chen recruited Shao Chen, Kewang Lin and other young men and women to commit credit card fraud across the Eastern United States. As part of the conspiracy, Wen Ping Chen recruited young women to obtain waitressing jobs at Chinese restaurants outside New York City. Chen gave his recruits credit card skimming devices which enabled them to steal the credit card numbers of restaurant customers. Chen used the stolen credit card numbers to manufacture counterfeit credit cards. He then recruited young men to travel from New York to other states and use counterfeit credit cards to make purchases, primarily of gift cards. The merchandise acquired through the fraudulent purchases would then be resold on a black market. In August 2014, Wen Ping Chen, Shao Chen and Lin drove from New York to Vermont. Shao Chen and Lin spent two days buying gift cards with counterfeit credit cards provided to them by Wen Ping Chen. On August 22, 2014, Shao Chen and Lin were arrested and later pled guilty in federal court to credit card related crimes. Wen Ping Chen was also arrested in 2014 but was initially released pending further investigation. More than 80 counterfeit credit cards were recovered by South Burlington officers, as well as thousands of dollars of gift cards.

Before being arrested in Vermont, Shao Chen, Lin and other conspirators made shopping trips to Virginia, Ohio, Indiana, Arkansas and Louisiana to buy gift cards with counterfeit credit cards supplied by Wen Ping Chen.

This case was investigated by the South Burlington Police Department, the United States Secret Service, and the Bureau of Immigration and Customs Enforcement.

Wen Ping Chen is represented by Paul Brenner; Shao Chen by Stacey Van Malden; and Kewang Lin by Edgar Fankbonner. The prosecutor is Assistant U.S. Attorney Gregory Waples.

The Office of the United States Attorney for the District of Vermont stated today that former Alburgh Selectman, Bernard Savage, and his wife, Patricia Savage, both of Alburgh, were sentenced today in the United States District Court in Burlington. U.S. District Court Judge William K. Sessions III sentenced Bernard Savage, 57, to 15 months in prison, and Patricia Savage, 57, to one month in prison. Bernard was also ordered to forfeit $75,000.00 to the government, required to pay a fine of $5000.00 and will be subject to a three-year term of supervised release upon completion of his sentence. Judge Sessions ordered Patricia to start serving her sentence immediately. The Court ordered Bernard to surrender to the Bureau of Prisons on March 7, 2017, to begin serving his sentence.

According to court documents, in August 2014, the Vermont Drug Task Force began an investigation into Bernard Savage for his involvement in distributing powder cocaine and oxycodone. In connection with that investigation, a confidential informant working with the Task Force participated in seven controlled purchases of either oxycodone or powder cocaine from Bernard and/or his wife Patricia. Bernard’s interactions with the CI were recorded and during one meeting, Bernard made statements such as: “I deal coke, I deal pills, I deal pot. I do all that shit.” “I bet you I’ve pumped out about twenty-five hundred pills in the last two weeks.” “I got pills. I got coke, I got pot. I got everything you want. I’m like a walking drugstore.”

On July 1, 2015, law enforcement executed a search warrant at the Savage residence in Alburgh which recovered, among other things, 103 firearms, cocaine, a variety of opiate pills (oxycodone, morphine, hydrocodone and percocet), marijuana, approximately $20,000 in cash, scales, various cell phones, and the remnants of a meth lab. On September 10, 2015, a grand jury sitting in Burlington indicted Savage with conspiracy to distribute oxycodone and cocaine, five counts of distribution of oxycodone and/or cocaine and a count of being a user of a controlled substance in possession of a firearm. The same grand jury later charged Bernard and Patricia with conspiracy to distribute oxycodone and cocaine, distribution of oxycodone and/or cocaine and possession of a firearm by a user of a controlled substance. On April 25, 2016, Savage entered into a plea agreement with the government in which he agreed to plead guilty to conspiracy to distribute cocaine and oxycodone, and agreed to immediate entry of a preliminary order of forfeiture for a money judgment of $75,000, as property constituting or derived from the proceeds obtained as a result of his drug trafficking.

The case was investigated by the DEA, Vermont Drug Task Force and the FBI.

Bernard Savage is represented by Karen Shingler. Patricia Savage is represented by Norman Blais. The United States is represented by Wendy Fuller.

The Office of the United States Attorney for the District of Vermont stated that, on January 26, 2017, Shatu H. Gadson, 44, of Queens, New York, was sentenced to 30 months in federal prison after his guilty plea to charges that he distributed heroin and cocaine base. U.S. District Court Judge J. Garvan Murtha also ordered that Gadson serve three years of supervised release after his prison term.

According to court records, in February and March of 2016, law enforcement in Burlington used an informant to make several purchases of cocaine base and heroin from Gadson. On April 1, 2016, agents arrested Gadson in New York City and he was brought to Vermont to face federal drug charges.

For his crimes, Gadson faced a statutory maximum term of 20 years in prison. The United States Sentencing Guidelines, which are advisory, recommended that Gadson receive a prison term between 21-27 months. Gadson and the government entered into a plea agreement in which the parties agreed that a 30-month prison sentence was appropriate. In determining that a sentence above the applicable Guideline range was correct, Judge Murtha considered, among other factors, Gadson’s serious criminal history which included felony convictions for drug dealing, assault, and manslaughter.

United States Attorney Eric Miller commended the efforts of the Burlington Police Department, the Department of Homeland Security, the Drug Enforcement Agency, the Vermont State Police, and the U.S. Marshals for their coordinated work in this investigation. United States Attorney Miller noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont. According to United States Attorney Miller, the United States Attorney’s Office and its law enforcement partners will continue to disrupt the flow of heroin into Vermont and hold drug dealers accountable for their serious crimes against the community.

The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Gadson is represented by Assistant Federal Public Defender Steven Barth.

The Office of the United States Attorney for the District of Vermont stated that, on January 23, 2017, Kevin Tocker-Rose, 30, of Brooklyn, New York, was sentenced to 40 months in federal prison after his guilty plea to charges that he possessed with the intent to distribute heroin. U.S. District Court Judge William K. Sessions III also ordered that Tocker-Rose serve three years of supervised release after his prison term.

According to court records, Tocker-Rose transported significant quantities of heroin from the New York City area for re-distribution. On May 5, 2016, after an investigation involving the controlled purchases of heroin from Tocker-Rose, the Vermont State Police Drug Task Force and other law enforcement agencies arrested Tocker-Rose in Burlington after he departed a bus from New York City. From his person, law enforcement recovered approximately 30 grams of heroin.

For his crime, Tocker-Rose faced a statutory maximum term of 20 years in prison. The United States Sentencing Guidelines, which are advisory, recommended that Tocker-Rose receive a prison term between 46-57 months. In determining that a more lenient sentence was appropriate, Judge Sessions considered Tocker-Rose’s difficult childhood and strong family support, among other factors.

United States Attorney Eric Miller commended the efforts of the Vermont State Police Drug Task Force, the Drug Enforcement Agency, and the Burlington Police Department for their coordinated work in this investigation. United States Attorney Miller noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont. According to United States Attorney Miller, the United States Attorney’s Office and its law enforcement partners will continue to disrupt the flow of heroin into Vermont and hold drug dealers accountable for their serious crimes against the community.

The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Hutchins is represented by Assistant Federal Public Defender David McColgin.

Through Presidential Proclamation, Barack Obama recognized January 2017 as NATIONAL SLAVERY AND HUMAN TRAFFICKING PREVENTION MONTH. In recognition of this month, the Office of the United States Attorney for the District of Vermont and the Office of the Attorney General for the State of Vermont join together to shine a light on the modern-day slavery known as human trafficking, a crisis facing the nation and Vermont.

Human Trafficking is the act of compelling a person by force, fraud, or coercion to provide labor or a commercial sex act. Coercion may be subtle and insidious, and traffickers often threaten serious physical and emotional harm. Human trafficking is a global, national and local problem. Vermont is not immune to this crisis. Drug addicts and other vulnerable people such as children, the disabled, and the undocumented are specifically targeted and recruited by traffickers for exploitation.

Vermont’s United States Attorney, Eric Miller, emphasized the link between human trafficking and the heroin scourge in Vermont, stating, “Human trafficking continues to be one of the most dangerous, but least understood, aspects of the heroin trade in Vermont. Drug dealers coerce addicts to perform commercial sex acts for the benefit of the dealers’ illegal organizations, deliberately perpetuating the victims’ addiction in order to exploit them for commercial gain. Trafficking in people compounds the damage that trafficking in heroin has caused our state. Our response to that epidemic must continue to bring the problem of human trafficking out of the shadows, get trafficking survivors the help and services they need, and prosecute the traffickers who prey on some of our most vulnerable Vermonters.”

Vermont’s Attorney General, T.J. Donovan, added, “We have seen, right here in Vermont, how human trafficking destroys lives. The physical and emotional scar survivors carry is immense. The only way to effectively combat this crime and to help those that have been victimized is for us, as a community, to bring this hidden scourge out in the open. As citizens we have a duty to be informed and to take action. That action may be contacting law enforcement with a concern, or reaching out to someone that you suspect may be being exploited. Remaining silent is no longer an option.”

Anyone can be a victim of human trafficking, regardless of race, age, gender, nationality, socio-economic status, or sexual orientation. Trafficking victims are often manipulated via false promises concerning relationships, employment, lifestyle, or drug availability, and victims are lured into situations where they are controlled by the trafficker. Human trafficking does not necessarily occur behind closed doors. In many cases, the trafficker’s control over the victim is so profound that the trafficker can control the victim even when he or she is out in the community, interacting with people on a daily basis.

Perpetrators of human trafficking crimes also come from all walks of life, and they can be family members, acquaintances, or strangers to their victims. They may act alone or as part of an organized effort; their main motive is to make a profit. The damage done by human trafficking is a violation of the victim’s basic human rights.

Vermont’s Human Trafficking Task Force brings together federal, state, and local law enforcement; social services; state agencies; and community based organizations to coordinate efforts to combat this crime and provide help to victims. The Vermont Human Trafficking Task Force continues to prioritize training and awareness for professionals and community members. Anyone interested in such a training or awareness event should contact the Vermont U.S. Attorney’s Office at (802) 951-6725.

To make a report to law enforcement, call The Vermont Human Trafficking Hotline: 1-888-98HUMAN (1-888-984-8626).

If you become aware of an instance of human trafficking and would like to speak with a trained specialist who can help assess the situation and provide information and referrals, call: 211.
Information regarding the human trafficking of a youth (under the age of 18) should be reported to the Department for Children and Families by calling Vermont Centralized Intake: 1-(800) 649-5285.

For more information about human trafficking, please visit https://humantraffickinghotline.org or www.justice.gov/humantrafficking.

The Office of the United States Attorney for the District of Vermont stated that, on January 9, 2017, Christopher Calderon-Melendez, 31, of Essex Junction, Vermont, was sentenced to a prison sentence of time served.  Calderon-Melendez had served approximately 7 months in jail awaiting disposition of his case.  U.S. District Court Judge William K. Sessions III also ordered that Calderon-Melendez serve three years of supervised release after his prison term. 

According to court records, between October and December of 2015, law enforcement conducted four controlled purchases of heroin from Calderon-Melendez at various locations in Chittenden County.  Calderon-Melendez pled guilty to an indictment charging him for distributing heroin.

For his crime, Calderon-Melendez faced a statutory maximum term of 20 years in prison.  The United States Sentencing Guidelines, which are advisory, recommended Calderon-Melendez receive a prison term of between 6 and 12 months.  In determining that a 7-month term was appropriate, Judge Sessions considered the severity of the offense, the harm heroin is causing to the community in Vermont, Calderon-Melendez’s relatively minor criminal record, and his history of opioid abuse.

United States Attorney Eric Miller commended the efforts of the Drug Enforcement Administration, the Burlington Police Department, the Essex Police Department, and the other law enforcement agencies that participated in this investigation.  United States Attorney Miller noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont.  According to United States Attorney Miller, the United States Attorney’s Office and its law enforcement partners will continue to disrupt the flow of heroin into Vermont and hold drug dealers accountable for their serious crimes against the community.

The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr.  Calderon-Melendez is represented by Richard Bothfeld.

The Office of the United States Attorney for the District of Vermont announced that Phillip Wilson, age 36, originally of the Bronx, New York and recently a resident of Chittenden County, Vermont, pled guilty today in federal court in Brattleboro to drug and gun charges arising from his heroin-related drug trafficking activity.

Wilson, who is being detained, appeared before Judge J. Garvan Murtha and pled guilty to a Superseding Information charging him with (1) distributing heroin in Vermont on or about February 23, 2016, (2) possessing heroin with intent to distribute on or about July 6, 2016, and (3) possessing firearms on or about July 6, 2016, in furtherance of a drug trafficking crime.

Under the terms of the proposed plea agreement filed with the Court—acceptance of which was deferred until sentencing proceedings on May 10, 2017 in Brattleboro—Wilson will be sentenced to 7 years in prison if the Court accepts the agreement.

As described during the change of plea proceedings in Court, in February 2016, law enforcement agents became aware that Wilson, who also goes by the aliases “Cody” and “Moscow,” was distributing heroin in Chittenden County, Vermont. Over the next few months, the Vermont Drug Task Force investigated Wilson and made five controlled purchases of heroin from Wilson. Subsequently, the Task Force obtained warrants to search two properties associated with Wilson. During the execution of those warrants on July 6, 2016, agents seized 160 bags of heroin, drug distribution paraphernalia, thousands of dollars in U.S. currency, and three firearms. Wilson has two prior convictions in state court for drug distribution.

The collaborative team investigating Wilson included agents from the Vermont Drug Task Force, the Vermont State Police, the Drug Enforcement Administration, the Federal Bureau of Investigation, and the South Burlington Police Department. This case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont. United States Attorney Miller again applauded the efforts of the agencies involved in the Heroin Initiative.

The United States is represented in this case by Assistant United States Attorney Kunal Pasricha. Wilson is represented by attorney Mark Oettinger.

The Office of the United States Attorney for the District of Vermont stated that Joel Joyce (a.k.a. “Prince”), 27, of Brooklyn, New York was convicted of conspiracy to distribute cocaine base and heroin by a federal jury sitting in Rutland on December 23, 2016. The jury also convicted Joyce of possession with intent to distribute 28 grams or more of cocaine base. The minimum term of imprisonment for these offenses is five years and the maximum term of imprisonment is 40 years. There is also a mandatory four-year term of supervised release which begins after the prison term is served.

According to the evidence presented at trial, Joyce would use co-conspirators from Brooklyn, New York to bring heroin and crack cocaine from Brooklyn to the Rutland, Vermont area. Joyce then used drug addicts in the Rutland area to distribute these drugs and collect his money. The government presented evidence that Joyce and his co-conspirators from New York would often stay at the homes of addicts in Rutland and West Rutland and used these homes as a base of operations in which to operate Joyce’s drug trafficking enterprise. Joyce paid these addicts heroin and crack cocaine for assisting him.

The government also presented evidence at trial showing that Joyce made tens of thousands of dollars selling drugs in the Rutland area. The government presented evidence that Joyce often managed by cell phone the drug trafficking operation in Rutland while he was in Brooklyn, New York.

Sentencing in this matter will likely be scheduled for some time in the spring of 2017 before U.S. District Court Judge Geoffrey Crawford sitting in Rutland.

Vermont’s United States Attorney, Eric Miller, noted that the investigation that led to the arrest and conviction of Joyce was jointly conducted by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Vermont State Police Drug Task Force, and the United States Attorney’s Office. “This conviction is the result of state and federal investigators and prosecutors working hand-in-hand to bring a dangerous drug dealer to justice. Mr. Joyce was a significant source of heroin and crack in the Rutland area, and Vermont’s communities are safer as a result of this successful prosecution.”

The United States is represented in this matter by Assistant U.S. Attorneys Joe Perella and Jon Ophardt. The defendant is represented by David Williams, Esq. of Burlington.

The Office of the United States Attorney for the District of Vermont stated that Derrell Lee, 25, of Atlanta, Georgia, was sentenced today for his role in a scheme to defraud TD Bank through the cashing or attempted cashing of fraudulent checks in Vermont using the stolen personal information and bank account information of other TD Bank customers. Sitting in Brattleboro, Senior U.S. District Judge J. Garvan Murtha sentenced Lee to 32 months in prison followed by two years of supervised release.

According to court records, in August 2015, law enforcement determined that Kirsta Dixon, a teller at an Atlantic City, New Jersey TD Bank branch, had provided account information for approximately 34 customers to Laurel Wells in exchange for compensation. Subsequent to the misappropriation of the customer account information, Derrell Lee cashed or attempted to cash approximately $33,000 in fraudulent checks in New York State and Vermont. On each occasion, Lee used the names and account information associated with the compromised information from Dixon.

Between August 8 and August 13, 2015, Lee entered eight different TD Bank branches, wearing a distinctive purple suit and passing himself off as someone else in an attempt to cash checks for thousands of dollars. On August 8, 2015, Lee successfully cashed a $4700 check in Fishkill, New York; on the same date he tried unsuccessfully to cash a $4500 check in South Hills, New York. On August 12, 2015, Lee cashed a $4700 check in Montpelier, Vermont; he cashed a $4800 check in Woodstock, Vermont; attempted to cash a $4800 check in Waterbury, Vermont; and attempted to cash another $4700 check in Barre, Vermont. On August 13, 2015, Lee cashed a check under another name in Richmond, Vermont for $4800. Law enforcement arrested Lee later that day after he attempted to cash a $4800 check at the TD Bank in Williston, Vermont. At the time of his arrest, Lee had a check made out to one of the compromised accountholders in New Jersey, a withdrawal slip, a New Jersey driver’s license containing Lee’s photo and the accountholder’s identifying information, and a Capital One credit card in the accountholder’s name. The license and credit card were both determined to be fraudulent. Fingerprint analysis determined that both Lee and Wells had contact with the withdrawal slip.

Several Vermont State’s Attorney’s Offices initially charged Lee for his offenses at each of the banks. Lee posted bond in his state cases in August 2015, but was arrested in January 2016 on a warrant for failure to appear for court proceedings.

On January 29, 2016, Lee was charged federally with bank fraud and aggravated identity theft. On June 22, 2016, he pled guilty to both crimes, the latter requiring a mandatory two-year prison term consecutive to his sentence on the bank fraud charge. Criminal cases are pending against Kirsta Dixon and Laurel Wells in the Superior Court of New Jersey.

This matter was investigated by the U.S. Secret Service, with the assistance of the Williston, Richmond, Waterbury, Montpelier, Barre, Woodstock, and Atlantic City, New Jersey Police Departments. The prosecution was handled by Assistant U.S. Attorney Kevin J. Doyle. Mr. Lee was represented by David L. McColgin of the Federal Defender’s Office in Burlington, Vermont.

The Office of the United States Attorney for the District of Vermont announced that Gregory Harriman, 52, formerly of Bennington, Vermont, was sentenced on December 19, 2016 to thirty months of imprisonment to be followed by three years of supervised release for his role in defrauding and embezzling funds from NSK Steering Systems America, one of the largest employers in Bennington, where Harriman previously served as the plant manager. In addition, District Judge William K. Sessions, III ordered Harriman to pay $386,850 in restitution.

In a related case, on December 12, 2016, Judge Sessions sentenced Stephen Savage, the brother-in-law of Harriman, to serve a term of probation for 12 months and pay a fine of $15,000 for obstructing justice in connection with Harriman’s fraud.

Gregory Harriman’s Fraud at NSK

The government’s investigation in this case revealed that from 2007 through 2011, Harriman orchestrated and implemented a scheme to obtain money from NSK by means of false and fraudulent pretenses, representations, and promises, whereby Harriman caused NSK to pay invoices that were false and Harriman had significant sums of the money paid on those invoices redirected to benefit himself.

As part of the scheme, Harriman set up Frontier Automation with James Waters and directed NSK work to Frontier Automation starting in 2007 and continuing through 2011. Harriman concealed from NSK his control of, and interest in, Frontier Automation. Harriman assisted Waters in preparing false quotes and invoices sent from Frontier Automation to NSK, Harriman took multiple steps to assist Waters in concealing this fraud, and Harriman later manufactured documents to try concealing the fraud.

At NSK, Harriman approved or directed others at NSK to approve the false invoices for payment, despite knowing that Frontier Automation had not performed the work listed on the invoices. During the course of the scheme, NSK paid Frontier Automation hundreds of thousands of dollars on false invoices, which Waters largely redirected to Harriman. Waters was also charged and has pleaded guilty to participating in this scheme to defraud NSK. His sentencing is scheduled for January 17, 2017.

In a separate transaction, Harriman also convinced the owner of Red C Parts, an engineering company out of New York, to provide NSK an invoice for work that Red C Parts did not perform. Harriman controlled the deal on behalf of NSK and approved the invoice for payment. Harriman also had substantial portions of the funds paid by NSK for this invoice redirected to benefit himself.

Harriman left NSK in 2011 and NSK soon discovered questionable transactions, which led to the government’s investigation and subsequent prosecution.

Stephen Savage’s Obstruction of Justice

In addition to Harriman’s scheme to embezzle funds from NSK through fraudulent transactions with Frontier Automation and Red C Parts, the government also investigated certain questionable transactions between NSK and Freedom Engineering, a company run by Stephen Savage, the brother-in-law of Harriman. Starting in 2008, Harriman also began directing some NSK business to Freedom Engineering.

In response to grand jury subpoenas seeking information from Stephen Savage about these transactions, Savage produced certain business records in 2014 that the government’s investigation later established were false and fraudulent. When questioned by government agents about these questionable transactions, Savage also made multiple false statements to law enforcement about Harriman and related issues.

Savage was subsequently charged with obstruction of justice based on his production of false documents in response to grand jury subpoenas and his knowing misstatements designed to mislead law enforcement in its ongoing investigation into Harriman.

Savage pled guilty to obstruction of justice, and on December 12, 2016, Judge Sessions sentenced Savage to serve a term of probation for 12 months and pay a fine of $15,000.

The cases against Harriman and Savage were prosecuted by Assistant United States Attorneys Paul Van de Graaf and Kunal Pasricha. The Federal Bureau of Investigation was the lead federal agency investigating these crimes. Harriman was represented by attorney Thomas Sherrer and Savage was represented by attorney Ian Carleton.

Burlington, VT- U.S. Attorney Eric Miller announced today that the United States Attorney’s Office for the District of Vermont collected $1,751,875.78 in criminal and civil actions in Fiscal Year 2016. Of this amount, $923,113.71 was collected in criminal actions and $828,762.07 was collected in civil actions.

Additionally, Vermont worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $161,470.55 in cases pursued jointly with these offices. Of this amount, $16,903.05 was collected in criminal actions and $144,567.50 was collected in civil actions.

Attorney General Loretta E. Lynch announced on December 14, 2016 that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.

“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”

U.S. Attorney Eric Miller added, “As we pursue justice on behalf of Vermonters, our office will continue to seek monetary remedies that impose appropriate punishment on wrongdoers, compensate victims, and protect publicly funded programs from fraud and abuse.”

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.

Additionally, the U.S. Attorney’s office in Vermont, working with partner agencies and divisions, collected $1,379,093 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

The Office of the United States Attorney for the District of Vermont announced that on December 15, 2016, at the intersection of Shelburne Road and Prospect Parkway, federal and local law enforcement authorities arrested a twenty-year-old South Burlington man, Randy McEntee, for the unlawful possession of a 9 mm pistol and related ammunition. McEntee, who has been diagnosed with significant mental health and developmental issues, has been under the legal guardianship of his mother, also of South Burlington, since May 2014, and is therefore prohibited by federal law from possessing any firearms or ammunition.

Later on December 15, the defendant appeared in District Court in Burlington before Magistrate Judge John M. Conroy and entered a plea of not guilty to the federal complaint charging him with the unlawful possession of a firearm and ammunition by a mentally defective person. On December 19, following a hearing, Magistrate Judge Conroy ordered the defendant detained.

According to the criminal complaint, law enforcement became aware of McEntee after a series of threats and online activity was reported. Thereafter, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives commenced an investigation that includes the preservation of several Facebook posts and photographs wherein McEntee documented his enjoyment of handguns and shooting.

On December 15, agents from ATF observed McEntee ride his bicycle from his home on Farrell Street to Shelburne Road. With the assistance of members of the South Burlington Police Department, law enforcement detained McEntee, and ultimately recovered a loaded Hi-Point pistol, 9 millimeter Luger, from inside McEntee’s pants pocket.

Immediately following the defendant’s arrest, federal ATF agents executed a search warrant on the defendant’s home that he shares with his mother and legal custodian. Inside the home, fifty rounds of 9 mm ammunition were recovered from what is believed to be his mother’s bedroom, one loose 9 mm round was recovered from what is believed to be McEntee’s bedroom, and thirty-two rounds of 9 mm ammunition and a Hi-Point firearm box were recovered from a drawer in what is believed to be McEntee’s bedroom.

If convicted, McEntee faces up to ten years of imprisonment. The actual sentence, however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The United States Attorney emphasizes that the charges in the complaint are merely accusations and that the defendant is presumed innocent unless and until he is proven guilty.

The United States is represented in this matter by Assistant U.S. Attorney Abigail Averbach. Randy McEntee is represented by the Office of the Federal Public Defender. The case is currently under investigation by federal ATF agents.

The Office of the United States Attorney for the District of Vermont stated that, on December 16, 2016, Robert Robidoux, 33, of Richmond, Vermont, was sentenced to 36 months in federal prison after his guilty plea to charges that he conspired to distribute heroin. Chief U.S. District Court Judge Christina Reiss also ordered that Robidoux serve three years of supervised release after his prison term.

According to court records, between June and August of 2015, Robidoux conspired to distribute heroin in Vermont. At the time, he was on parole for a previous felony conviction in Vermont for the possession of heroin.

For his crime, Robidoux faced a statutory maximum term of 20 years in prison. The United States Sentencing Guidelines, which are advisory, recommended Robidoux receive a prison term of between 33 and 46 months. In determining that a 36-month term was appropriate, Judge Reiss considered the severity of the offense, the harm heroin is causing to the community in Vermont, and Robidoux’s lengthy criminal record.

United States Attorney Eric Miller commended the efforts of the Vermont State Police Drug Task Force and the Burlington Police Department in this case. United States Attorney Miller noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont. According to United States Attorney Miller, the United States Attorney’s Office and its law enforcement partners will continue to disrupt the flow of heroin into Vermont and hold drug dealers accountable for their serious crimes against the community.

The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Robidoux is represented by Lisa Shelkrot from the law firm Langrock Sperry & Wool.

The United States Attorney’s Office for the District of Vermont announced today that physician Lynn E. Madsen, M.D., of Townshend, Vermont, has paid $76,000 to the United States to resolve allegations that she violated the federal False Claims Act, 31 U.S.C. § 3729, by knowingly presenting, or causing to be presented, false claims for payment to Medicare and Medicaid. The money will be divided between the federal Medicare, federal Medicaid, and Vermont Medicaid programs to which Dr. Madsen submitted the alleged false claims.

The United States contends that, from on or about November 1, 2013, to November 30, 2015, Dr. Madsen knowingly presented, or caused to be presented, hundreds of false claims for payment to the Medicare and Medicaid programs for trigger point injections (a pain management procedure) that were not reasonable and medically necessary and which did not comply with applicable Medicare and Medicaid laws, regulations, and program limitations. More specifically, the United States contends that the trigger point injections performed by Dr. Madsen consisted solely of saline or saline-based anthroposophic injectates that were devoid of any approved therapeutic agent and not considered reasonable and medically necessary under applicable Medicare and Medicaid laws, regulations, and program limitations.

The settlement announced today resolves the foregoing allegations without the need for litigation. Pursuant to the terms of the settlement agreement, the agreement and payment are neither an admission of liability by Dr. Madsen, nor a concession by the United States that its claims were not well founded.

This matter was investigated by the United States Attorney’s Office for the District of Vermont and the Office of the Inspector General of the Department of Health and Human Services, with assistance from the Medicaid Fraud and Residential Abuse Unit of the Vermont Attorney General’s Office. Assistant United States Attorney Ben Weathers-Lowin handled the matter on behalf of the United States. Dr. Madsen was represented by Ian P. Carleton of the law firm Sheehey, Furlong & Behm, P.C.

The United States Attorney for the District of Vermont and the Swanton Sector, United States Border Patrol announce that Daniel Larmand, 52, a Montreal resident, appeared today in United States District Court in Burlington on a charge of alien smuggling. U.S. Magistrate Judge John M. Conroy released Larmand on conditions pending the next court hearing.

According to the criminal complaint that was filed in court today, Border Patrol agents, with assistance from the Royal Canadian Mounted Police, witnessed a green, older model sport utility-type vehicle approach the United States border late in the afternoon on December 2. The vehicle stopped just north of the border and discharged a passenger, who then illegally walked across the border into the United States. Agents from the Champlain and Swanton Border Patrol Stations were dispatched to the area, in Alburgh, and within minutes located the illegal entrant, who turned out to be a Greek national.

Shortly after the alien was apprehended, the defendant Daniel Larmand appeared at the Alburgh Port-of-Entry seeking admission to the United States. Larmand was driving an older model green Chevy Blazer. He said that he was going to Rouses Point to look at a boat. After inspection, Larmand was permitted to enter the U.S.

Instead of going to Rouses Point, however, Larmand drove to the location where Border Patrol agents were still detaining the illegal alien. Agents questioned Larmand about his reasons for being in the area. During this encounter, the alien saw Larmand and identified him as the person who helped smuggle him into the United States. The Greek national reported that other persons had previously paid Larmand $1000 to smuggle him into this country.

The United States Attorney emphasizes that the charge in the complaint is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.

If convicted, Larmand faces up to ten years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.

The Swanton Sector Border Patrol is responsible for securing the land border between ports of entry in Vermont as well as New Hampshire and northeastern New York. The assistance of citizens is invaluable in helping the U.S. Border Patrol accomplish their border security mission and they welcome community members to help them keep our nation’s borders safe by reporting suspicious activity at 1-800-689-3362.

For more on CBP’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.
Larmand is represented by Assistant Federal Defender David McColgin. The prosecutor is Assistant U.S. Attorney Gregory Waples.

The United States Attorney for the District of Vermont and the Swanton Sector Office of the United States Border Patrol announce that Paulo Abelha, 49, a citizen of Portugal, pleaded guilty today in United States District Court in Burlington to an indictment which charges him with reentering the United States after having been twice deported. Chief U.S. District Judge Christina Reiss sentenced Abelha to time served. Abelha has been held without bail since his arrest last August. Custody of Abelha will be transferred from the U.S. Marshal’s Service to the Department of Homeland Security for removal proceedings.

According to court records, Abelha is a citizen of Portugal who moved to the United States in 1971 with his parents. In 1994, after he was convicted of violent felonies and served a prison sentence in Massachusetts, Abelha was deported to Portugal. In July 2016, federal officials learned that Abelha had at some point come back to the United States illegally and was living in Fall River. He was taken into custody and again deported to Portugal on August 16.

Three days later, on the evening of August 19, Canadian law enforcement officers notified Border Patrol agents in Vermont that a man had been dropped off at a place just north of the border and had then walked into the United States near Alburgh. Border Patrol agents went to the area and soon found Abelha, who was carrying a backpack. Documents in Abelha's possession showed that he had flown into Montreal from Portugal earlier that day. Abelha did not enter the United States through a port-of-entry and is ineligible to return to the United States.

The Swanton Sector Border Patrol is responsible for securing the land border between ports of entry in Vermont as well as New Hampshire and northeastern New York. The assistance of citizens is invaluable in helping the U.S. Border Patrol accomplish their border security mission and they welcome community members to help them keep our nation’s borders safe by reporting suspicious activity at 1-800-689-3362.

For more on CBP’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.

Abelha is represented by Assistant Federal Defender David McColgin. The prosecutor is Assistant U.S. Attorney Gregory Waples.

The Office of the United States Attorney for the District of Vermont stated that Michael DePalma, 57, of Plainfield, New Hampshire was sentenced for his role in a conspiracy to distribute alpha-pyrrolidinopentiophenone (“a-PVP”), a synthetic drug commonly referred to as “bath salts.” DePalma was convicted of conspiring with Louis Turcio, 52, of Springfield, Vermont, Andrew Darling, 52, of North Walpole, New Hampshire, Michael Kline, 44, of Chester, Vermont, and Christine Spaulding, 37, of Bellows Falls, Vermont, to distribute a-PVP from March 2014 through June 2015. Chief United States District Judge Christina Reiss sentenced DePalma to 72 months’ imprisonment and three years of supervised release. Judge Reiss previously sentenced Turcio to 72 months’ imprisonment and three years of supervised release; Darling to 53 months’ imprisonment and three years of supervised release; Kline to 36 months’ imprisonment and three years of supervised release; and Spaulding to 24 months’ imprisonment and three years of supervised release. In a related a-PVP conspiracy, Chief Judge Reiss sentenced Jesse Emerson of Springfield to 55 months’ imprisonment and five years of supervised release, and Eugenia Emerson of Bellows Falls, Vermont to 49 months’ imprisonment and three years of supervised release.

According to court records, in 2011 DePalma located an on-line source for bath salts in China. Over the course of the conspiracy, DePalma and his co-conspirators imported kilogram quantities of a-PVP from China for distribution in Springfield, Vermont and neighboring areas. Among the evidence establishing the bath salts conspiracy, during the execution of a search warrant at Turcio’s Springfield residence in March 2015, law enforcement recovered $2,000 in currency, drug paraphernalia, and several handguns, two of which had serial numbers removed. Law enforcement also encountered Kline in a room with a pistol on the dresser. On April 14, 2015, law enforcement intercepted a package of a-PVP en route from China to Vermont, and conducted a controlled delivery of the package at the Springfield, Vermont Post Office. Turcio arrived at the post office to retrieve the package and was intercepted by federal agents. Also on April 14, 2015, Darling was arrested after the Springfield Police Department conducted a stop as Darling was driving DePalma’s car. At that time, law enforcement seized a quantity of bath salts and a 9mm pistol between the driver’s seat and the console. DePalma admitted to law enforcement that he possessed a 9mm handgun that he had received in trade for bath salts.

United States Attorney Eric Miller commended the collaborative efforts of the agencies involved in this investigation, which included the Federal Bureau of Investigation, the Vermont Drug Task Force, the Springfield, Vermont Police Department, the U.S. Postal Inspection Service, the New Hampshire Drug Task Force, Homeland Security Investigations, the Plainfield, New Hampshire Police Department.

The prosecution was handled by Assistant U.S. Attorney Kevin J. Doyle. DePalma was represented by Jordana Levine, Esq., Darling was represented by Lisa B. Shelkrot, Esq., Turcio was represented by Frank J. Twarog, Esq., Kline was represented by Mark D. Oettinger, Esq., and Christine Spaulding was represented by Jason Sawyer, Esq.

United States Attorney Eric Miller announced today that Julia Torti has joined the United States Attorney’s Office for the District of Vermont as an Assistant United States Attorney in the Office’s Civil Division. Ms. Torti, who grew up in Vermont and is returning after starting her career at a civil rights law firm in New York, is one of thirty-four new Assistant United States Attorneys joining U.S. Attorney’s Offices across the country and focusing on enforcement of the nation’s federal civil rights laws. The Department of Justice created these new positions to increase and improve the United States Attorney’s Offices’ ability to apply dedicated resources to civil rights enforcement in all corners of the country. With the support of Vermont’s civil rights advocates and elected officials, the United States Attorney’s Office for the District of Vermont was awarded one of the thirty-four new positions through a competitive application process.

Since 2010, the United States Attorney’s Office for the District of Vermont has developed a civil rights program through community outreach, education, and case work. It has investigated and resolved numerous civil rights cases involving disability discrimination. The Chief of the Civil Division of the United States Attorney’s Office, Nikolas Kerest, noted, “The addition of a new Assistant United States Attorney concentrating in this area will significantly increase the Office’s ability to reach and to protect the civil rights of Vermonters.”

“Aggressive protection of the civil rights of the residents of Vermont is a top priority for the Department of Justice,” said U.S. Attorney Miller. “The Department and this U.S. Attorney’s Office are committed to a level playing field for all Vermont residents, promoting equal opportunity for Vermonters, and educating the public about their rights and responsibilities under federal civil rights laws. Being selected to receive one of the thirty-four new civil rights AUSA positions and having Assistant United States Attorney Torti join us are great steps toward achieving those goals.”

“Now, more than ever, it is crucial that we have the resources in Vermont and in other states to investigate and prosecute civil rights violations. I commend U.S. Attorney Eric Miller and his team for their hard work in securing this position for Vermont, and I was gratified to be in a position to support their efforts,” said Senator Patrick Leahy, D-Vt., the ranking member of the Senate Judiciary Committee. “As Vermont’s population becomes more diverse, we will continue to work to assure that no one faces discrimination based on the color of their skin, their identified gender or sexual orientation, their disability or their religious beliefs. I am proud that our small state is committed to upholding these basic human rights because all Vermonters deserve to be treated with dignity and fairness.”

Also joining the United States Attorney’s Office for the District of Vermont and working towards the protection of the civil rights of Vermonters will be a contract Civil Rights Intake and Outreach Coordinator. This contractor will be collaborating with Assistant United States Attorney Torti and local community members, advocacy groups and other federal and state agencies to promote education and protection of Vermonters’ civil rights.

Curtiss Reed, Jr., the Executive Director of the Vermont Partnership for Fairness and Diversity, added, "Vermont Partnership for Fairness & Diversity applauds the staff additions to the office of the United States Attorney for the District of Vermont at a time when many Vermonters feel vulnerable to acts of discrimination, denial of services, and hate crimes. We look forward to working with Ms. Torti and her colleagues to defend and strengthen civil rights for all Vermonters.”

Federal civil rights laws, among other things, prohibit discrimination and harassment on the basis of race, national origin, gender, religion and disability; prohibit hate crimes; prohibit police misconduct; protect the constitutional rights of institutionalized persons; protect the employment rights of service members; and prohibit discrimination in housing and mortgage lending. For more information on the Department of Justice’s civil rights effort, please visit www.justice.gov/crt.

The Office of the United States Attorney for the District of Vermont stated that Arnold Hanson, 66, of Nashua, New Hampshire, was sentenced by Chief Judge Christina Reiss yesterday based on his conviction for conspiracy to make false statements to a financial institution. Chief Judge Reiss sentenced Hanson to six months of home confinement and six months of curfew as part of a three-year term of supervised release. The court also sentenced Hanson to pay $300,000 in restitution by January 1, 2017.

As part of the sentencing, Hanson admitted to submitting or causing to be submitted inflated figures for assets of Isaacson Structural Steel, Inc., including inventory, to Passumpsic Savings Bank, and other banks participating in loans totaling over $12 million, including a $2 million loan guaranteed by the Small Business Administration in late 2010. Hanson was part owner and Chief Executive Officer of ISSI, which before its bankruptcy was one of the largest businesses in the North Country. ISSI fabricated steel used in commercial construction. It entered into construction contracts to provide not only the steel for commercial buildings but also to provide subcontractor services, principally the erection of the steel. ISSI purchased steel and fabricated the various pieces of steel needed for each contract at its Berlin, Hampshire location and then shipped the steel to building sites. Several weeks ago, ISSI’s CFO Steven Griffin was sentenced to two years of home confinement based on his guilty plea to submitting false financial statements.

According to court records, between August 2007 and April 2011, ISSI officers regularly submitted false and inflated figures to the banks regarding the value of ISSI’s assets. ISSI submitted these false statements about assets in borrowing base certificates and financial statements. ISSI regularly inflated its assets by a million dollars or more. For example, in August 2007, ISSI officers discussed, and then submitted to the bank, inflated figures for the amount of money owed to ISSI for work done in connection with 303 Third St., a construction project in Boston. In early 2011, officers participated in the submission of an ISSI’s draft financial statement for the financial year 2010, which contained significant overstatements about ISSI’s inventory. That financial statement had an inventory representation of approximately $12 million dollars. In fact, the value of the inventory was less than $2 million. Inventory was thus inflated by over $10 million. In April 2011, the banks learned about issues with ISSI’s inventory figures. By June 2011, ISSI was in bankruptcy, and its assets were later liquidated. In the end, the banks lost millions of dollars as a result of the fraud. At the sentencing hearing, the government represented its view that Griffin was more culpable than Hanson. Indeed, at times, Griffin lied to Hanson when he asked about financial information.

At the sentencing hearing, Hanson asked the Court to sentence him below the advisory sentencing guideline range of 46 to 57 months in jail. The government also moved for a below guidelines sentence in light of Hanson’s substantial cooperation in the investigation and prosecution of Griffin. Chief Judge Reiss agreed that in light of a variety of factors a jail sentence should not be imposed. The Court imposed a limit on Hanson’s freedom by imposing a lengthy period of home confinement and curfew.

This week, David Driscoll, ISSI’s outside accountant, agreed to settle a related, civil bank fraud case. The government filed a civil complaint alleging that Driscoll participated in the filing of false financial information on behalf of ISSI. Driscoll had responsibility for the yearly audit of ISSI’s assets, and according to the complaint knowingly prepared audit information that he knew contained inflated assets. At the time, Driscoll also served as a member of the Passumpsic Savings Bank board of directors. Driscoll agreed to pay a total of $100,000 in penalties associated with his conduct as an outside accountant. The government gave Driscoll credit for other penalties and costs that Driscoll has paid in connection with his conduct, including a civil penalty paid to the Federal Deposit Insurance Corporation, which regulates financial institutions. Driscoll has paid the federal government an additional $37,000 to settle the pending civil case. As part of the settlement, Driscoll did not admit liability in connection with the allegations in the complaint, which has been dismissed in light of the settlement.

The United States is represented in this matter by Assistant U.S. Attorneys Paul Van de Graaf and Timothy Doherty. Hanson is represented by George Ostler, Esq. Driscoll is represented by Craig Nolan, Esq. The investigation was conducted by the Federal Bureau of Investigation, the Office of Inspector General for the Federal Deposit Insurance Corp., and the Office of Inspector for the Small Business Administration.

The United States Attorney for the District of Vermont announced that William O’Brien, 60, an attorney who lives in Winooski, pleaded guilty today in United States District Court in Burlington to a charge of wire fraud. Chief U.S. District Judge Christina Reiss released O’Brien on conditions pending sentencing, which has been set for May 31, 2017 in Brattleboro.

On October 13, the United States filed a criminal information charging O’Brien with one count of wire fraud, the charge which he admitted today. The information charges O’Brien with defrauding two former law clients. In one case, O’Brien became the trustee of a trust established by the clients. As trustee, O’Brien was to use trust funds to make charitable contributions in the memory of the clients. Between 2008 and 2013, O’Brien did make a number of contributions of trust funds in the total amount of $97,500, but also improperly diverted about $270,000 in trust funds to his law firm account. In another case, O’Brien received in his capacity as attorney more than $247,000 in client funds, which were also meant to be used for charitable purposes. Although O’Brien did make one contribution of $15,000, he again used the remaining funds for his own benefit.

In early 2016, O’Brien did repay about $472,000 to these two clients, but those payments were made only after O’Brien became aware he was under investigation by counsel for the Vermont bar. The Vermont Supreme Court suspended O’Brien’s law license in January.

O’Brien faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence will be determined with reference to federal sentencing guidelines.

This case was investigated by the Burlington Police Department, the U.S. Postal Inspection Service and the Vermont Judiciary’s Office of Disciplinary Counsel.

O’Brien is represented by Scott McGee of Norwich. The prosecutor is Assistant U.S. Attorney Gregory Waples.

The Office of the United States Attorney for the District of Vermont stated that Matthew Hinton, 26, of Orwell, has been charged with an armed robbery of the Maplefields convenience store in Fair Haven, which occurred in the early morning hours of September 30, 2015.

The federal grand jury, sitting in Rutland, returned a four-count superseding indictment against Hinton. Hinton was previously charged with felon-in-possession of a firearm and possession of a stolen firearm, each of which carry a maximum prison sentence of ten years. Hinton pled not guilty to those charges. He is currently being detained by the Vermont Department of Corrections on separate unrelated state charges.

The two new federal charges are a Hobbs Act federal robbery charge, which carries a maximum sentence of twenty years. The second new charge is that of brandishing a firearm during a crime of violence, which carries a mandatory minimum consecutive sentence of seven years and a maximum sentence of life imprisonment. He is scheduled to be arraigned on these new charges on November 21, 2016 before Magistrate-Judge John Conroy in Burlington, Vermont.

The United States Attorney emphasizes that the charges contained in the indictment are merely accusations and that the defendant is presumed innocent unless and until he is proven guilty.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Fair Haven Police Department, and the Vermont State Police. The United States is represented by Assistant U.S. Attorney Joe Perella and Mr. Hinton is represented by David McColgin of the Federal Public Defenders Office.

The Office of the United States Attorney for the District of Vermont announced today that Diheim Young, age 32, of Brooklyn, New York was sentenced by Judge William K. Sessions, III, in federal court to twelve years in prison after pleading guilty to a conspiracy to distribute heroin and crack cocaine in Rutland, Vermont as well as a conspiracy to engage in sex trafficking women between Vermont and New York. Young pleaded guilty to sex trafficking five women between 2012 and 2015. Four of the women were Vermont residents at the time they were trafficked. Judge Sessions also sentenced Young to five years of supervised release after his prison sentence.

According to the public record, Young worked with a series of women who assisted him in the drug trade. These women sold drugs for him, transported him to meet drug customers in and around Rutland and transported him to New York City to pick up drugs from his source of supply. When the women were sufficiently addicted to be dependent upon him, Young turned their addictions against them as a means of controlling them. Young convinced some of the women to travel to New York City with him under false pretenses and, once there, forced them to prostitute themselves either by posting advertisements on a website called Backpage or by forcing them to walk what is known as “the track.” If the women refused to engage in prostitution, Young withheld drugs from those who were addicted knowing that they would get sick from withdrawal. Young would also hit the women or threaten to hit them if they refused to do as Young said or attempted to escape.

With some of the Vermont women, Young also confiscated their cell phones and identification documents as a means of isolating and controlling them once they were in New York. One of Young’s siblings made his apartment in Brooklyn, New York, available for use as part of the sex trafficking scheme. This residence was used as a location to photograph the women for the purpose of creating Backpage advertisements, which he used to advertise some of the women to potential sex buyers. Young also held the women at the Brooklyn apartment where he assaulted them physically and sexually if they refused to engage in commercial sex acts or tried to leave him. Young took the proceeds earned by the women for engaging in forced prostitution and threatened them that if they stopped providing him with these prostitution proceeds, he would harm them further.

The United States Attorney commends the investigative efforts of the Federal Bureau of Investigation, the Southern Vermont Drug Task Force, and the Rutland Police Department, who worked together in this investigation. This case represents the success of interagency work as part of the Department of Justice’s and the State of Vermont’s joint efforts combatting human trafficking.

The United States was represented in this case by Assistant U.S. Attorney Paul Van de Graaf. The defendant is represented by Assistant Federal Public Defender David McColgin.

The United States Attorney for the District of Vermont announced that Daniel Burgess, 50, of Stowe, pleaded not guilty on October 31, 2016 in United States District Court in Burlington to a charge of wire fraud. U.S. Magistrate Judge John M. Conroy released Burgess on conditions pending trial, which has not been scheduled.

On October 27, a federal grand jury in Burlington returned a one-count wire fraud charge indictment against Burgess. According to the indictment, Burgess engaged in the business of buying and selling securities through a company he owned named Tucker Financial Services. The indictment alleges that in July 2011, Burgess entered into a contract with a woman from Nevada in which Burgess agreed to try to sell 520,000 shares of a penny stock the woman owned. Under the terms of the agreement, the woman would receive 80% of the gross proceeds of any stock sales and Burgess would be entitled to the remaining 20%.

The indictment charges that between August and October 2011, Burgess sold all 520,0000 shares of the penny stock for a total of about $619,000. The woman’s 80% share of the sale proceeds was about $495,000. Burgess paid her about $246,000, but fraudulently converted the remaining money for his own use.

The United States Attorney emphasizes that the charge in the indictment is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.

If convicted, Burgess faces up to 20 years of imprisonment and a fine of up to $500,000. The actual sentence would be determined with reference to federal sentencing guidelines.

This case was investigated by the Federal Bureau of Investigation and the Vermont Department of Financial Regulation.

Burgess is represented by Jasdeep Pannu. The prosecutor is Assistant U.S. Attorney Gregory Waples.

The United States Attorney’s Office announced today that the government and its public and private partners have completed an agreement to convert forfeited Rutland drug houses to safe, renovated housing. The government had previously filed suit to forfeit the drug houses, located at 114, 116 and 117 Park Avenue in Rutland, because those properties were used to distribute crack and heroin. The settlement of that lawsuit, announced today, was made possible by an innovative partnership among the federal government, the City of Rutland, Neighbor Works of Western Vermont (“NWWVT”), and other private parties. The settlement agreement will result in the conversion of the blighted properties to high-quality, renovated, owner-occupied single-family residences, duplexes or condominium residential units that will benefit the residents of Rutland.

The United States’ forfeiture lawsuit was brought pursuant to 21 U.S.C. § 881(a)(7), which, under certain circumstances, allows for forfeiture of property used to commit or facilitate the commission of felony drug offenses. The federal forfeiture law also requires owners of such rental properties to take reasonable and safe steps to discourage or prevent drug dealing on the property, such as contacting law enforcement and seeking to evict the tenants involved. In its lawsuit, the government alleged the owners of the Park Avenue properties had failed to take such reasonable steps.

The settlement was made possible by the cooperation of multiple governmental, non-profit, and for-profit parties, including: (1) the United States, which is the plaintiff in the lawsuit; (2) Ericob Vermont Realty Corp, the former owner of the property; (3) the City of Rutland, which was owed property taxes and other fees on the properties; (4) the mortgagee for the property; and (5) NWWVT, which will renovate and resell the properties.

Under the terms of the settlement, the owners of the properties agreed to forfeit them to the United States. After forfeiture to the United States, the United States Marshals Service (“USMS”) agreed to transfer the properties to the City of Rutland. The City of Rutland, in turn, agreed to cancel all of its outstanding taxes, fines, and fees and transfer the properties to NWWVT. NWWVT agreed to rehabilitate the properties and sell them for owner-occupied housing. Under the terms of the City of Rutland’s deed to NWWVT, the three properties may only be used for owner-occupied, single family residences, duplexes, or condominium residential units. Finally, NWWVT agreed to pay $82,500 (minus the USMS’ costs) to the mortgage holder on the properties in return for the mortgage holder discharging its mortgage liens. The USMS agreed to cap its costs at $5,000 and, in fact, kept its costs to approximately $750.

Describing the settlement agreement, United States Attorney Eric Miller said, "This innovative agreement is a 'Win-Win-Win.' Law enforcement has stopped the pervasive drug dealing that once plagued these properties; Rutland has taken yet another step toward reclaiming a beautiful neighborhood; and the non-profit housing community has increased the stock of safe and refreshed housing available to the community it serves."

NWWVT Executive Director Ludy Biddle stated “NeighborWorks is thrilled to have a part in turning these beautiful historic houses into family homes so more children can carve pumpkins and watch movies outdoors together and ride bikes along the creek as part of living in this wonderful neighborhood.”

The forfeited properties are located in the northwest neighborhood of the City of Rutland, where a 2014 housing study found that only about 32% of the residences were owner-occupied. The settlement ensures that these three residential properties will be transformed from ownership by an absentee landlord into owner-occupied, single family residence, duplexes, or condominium residential units, thereby reducing the risk that the properties will again provide shelter for drug dealers. U.S. Attorney Eric Miller noted that this forfeiture case, and the related criminal prosecutions, represent a concerted effort by the federal, state, and local governments to improve the quality of life in this neighborhood and to make it safer for families. U.S. Attorney Miller also praised NWWVT for investing in the renovation and resale of the properties and the U.S. Marshals for their contributions to the resolution of this matter.

The original complaint and the accompanying affidavit show that there were multiple heroin and crack cocaine dealers living in and using the apartments in the Park Avenue buildings starting at least in 2011 and 2012 and continuing into 2015. The documents also show that law enforcement searched several of the apartments in 2013. Law enforcement made six controlled drug purchases from dealers in the apartments and arrested several persons who had been living there. Many former tenants have been convicted and sentenced to significant time in federal prison. They include, among others: Eric Dixon, now serving 87 months in federal prison; Ernest Murray, now serving 60 months in federal prison; Andrew Harris, now serving 60 months in federal prison; Terrance Chenault, now serving 87 months in federal prison; and Joshua Minix, now serving 87 months in federal prison.

The United States Attorney’s Office’s efforts to combat drug trafficking in Rutland have been made possible by the enforcement work of the Vermont State Police Drug Task Force, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Rutland Police Department.

The United States is represented in this matter by Assistant U.S. Attorneys James Gelber and Joseph Perella. The former owners of the property are represented by Matthew Shagam, Esq., of Burlington. NWWVT is represented by Gary Kupferer, Esq., and the City of Rutland is represented by City Attorney Charles Romeo.

The Office of the United States Attorney for the District of Vermont stated that last week the Grand Jury in Rutland returned a Second Superseding Indictment adding a charge of conspiracy against Marco Antonio Lam Peralta and Diego Walther Anibal Mejia Paredes. The Second Superseding Indictment re-alleged the two previous counts from the First Superseding Indictment, which charged Lam Peralta and Mejia Paredes with possession with intent to distribute more than a kilogram of heroin, and Lam Peralta with harboring an illegal alien. The new conspiracy count alleges that Lam Peralta and Mejia Paredes conspired from July to October 2015 to distribute more than a kilogram of heroin.

If convicted on either heroin-related count, the defendants would face a minimum sentence of 10 years in prison, and a maximum sentence of life in prison. The Second Superseding Indictment is an accusation only; the defendants are presumed innocent until and unless proven guilty.

Court records show that this case arose from an October 2015 shipment from Guatemala destined for the address of a Mexican restaurant in Manchester Center, Vermont. Customs officials determined the shipment contained a large quantity of heroin (more than 40 kilograms, or 88 pounds) hidden in Guatemalan nutritional supplement packaging. Agents from the Department of Homeland Security, working with the Drug Enforcement Administration and the Vermont State Police, arranged for a controlled delivery of this package to the restaurant, where Mejia Paredes was waiting to take delivery.

Court filings indicate that while Mejia Paredes waited for the shipment to be delivered, he was in telephone contact with Lam Peralta, and that while Mejia Paredes waited at the restaurant Lam Peralta contacted the shipping company twice. Additional investigation identified seven previous shipments, similar in size, weight, and customs declarations to the heroin-containing intercepted package, that were sent to addresses associated with Lam Peralta in the Manchester area from Guatemala in the three months preceding the October 2015 arrest. Upon his arrest Mejia Paredes possessed a cell phone which appears to contain messages between him and Lam Peralta discussing one of the earlier shipments, as well as to where the intercepted-package should be addressed.

No trial date has been set. Both Mejia Paredes and Lam Peralta have been ordered detained in the custody of the United States Marshal pending trial. Last week Lam Peralta filed motions with the United States District Court for the District of Vermont, seeking to sever his case from Mejia Paredes’ and the suppression of his post-arrest statements to law enforcement. He also filed a motion asking the Court to reconsider its previous decision that he be detained.

AUSA Michael Drescher is handling the prosecution. Lam Peralta is represented by Ernest M. Allen, III, of Burlington, and Mejia Paredes is represented by Steven Barth, of Burlington.

The United States Attorney’s Office will hold a press conference in Rutland on Monday, October 31, 2016 at 11:00 a.m. to discuss the completion of an agreement to forfeit three Rutland residences on Park Avenue and convert them to owner-occupied housing. These properties were forfeited based on significant narcotic drug distribution activity occurring at these addresses. Under the terms of the agreement, the properties have been transferred to NeighborWorks of Western Vermont. NeighborWorks of Western Vermont will renovate them and sell them on the condition that the purchaser maintain them as owner-occupied single-family residences, duplexes or condominium residential units. A separate press release will be issued at the time of the press conference explaining the agreement and its significance in more detail.

Present at the press conference will be representatives from participating federal, state and local law enforcement agencies, the City of Rutland, NeighborWorks of Western Vermont, and Project Vision. Those attending include: United States Attorney Eric Miller, Mayor Christopher Louras, United States Marshal David Demag, Rutland City Police Department Chief, Brian Kilcullen, Lieutenant Paul Favreau, Vermont State Police (Narcotics Investigation Unit), Ludy Biddle, Executive Director, NeighborWorks of Western Vermont, and Joe Kraus, Chairman of Project Vision.

Please contact Laura Harvey at the United States Attorney’s Office, telephone 802-951-6725, if you have any questions.

The Office of the United States Attorney for the District of Vermont announced that Matthew T. Martin, 32, from the Springfield area of Vermont, appeared today in federal court in Burlington to plead guilty to a series of violent robberies he committed in 2015 across Vermont and New Hampshire. Martin, who is being detained, appeared before Judge William K. Sessions III to plead guilty to a Superseding Information charging him with eight robberies:

• Count 1: robbery of the People’s United Bank in Brattleboro, Vermont, on December 14, 2015; • Count 2: robbery of the Heritage Family Credit Union in Ludlow, Vermont, on December 21, 2015; • Count 3: robbery of the Windsor County South Credit Union in Springfield, Vermont, on January 28, 2015; • Count 4: robbery of a gas station in Ludlow, Vermont, on February 7, 2015; • Count 5: robbery of the Citizens Bank in Springfield, Vermont, on February 17, 2015; • Count 6: robbery of the Greater Falls Pharmacy in Bellows Falls, Vermont, on November 11, 2015; • Count 7: robbery of the Mascoma Savings Bank in Charlestown, New Hampshire, on December 1, 2015; and
• Count 8: robbery of the TD Bank North in Loudon, New Hampshire, on December 4, 2015.

Under the terms of the proposed plea agreement filed with the Court—acceptance of which was deferred until sentencing proceedings on February 1, 2017 in Brattleboro—Martin will be sentenced to 180 months (15 years) imprisonment if the Court accepts the agreement. Under federal law, parole has been eliminated for federal defendants.

As charged in the Superseding Information, on December 14, 2015, Martin committed an armed robbery of a branch of the People’s United Bank in Brattleboro, Vermont. In committing this crime, Martin assaulted others by using a BB gun that resembled a firearm and by using a device that purported to be a bomb. When robbing this bank, like in some of his other robberies, Martin disguised himself as a woman, making it harder for law enforcement to identify him.

A week later, on December 21, 2015, Martin committed an armed robbery, this time of a branch of the Heritage Family Credit Union in Ludlow, Vermont. Again, Martin assaulted others by using a dangerous weapon, specifically, a BB gun that resembled a firearm.

Shortly thereafter, in late December 2015, Martin surrendered to law enforcement after the U.S. Marshals Service publicly named him a “Fugitive of the Week” based on outstanding arrest warrants and his ongoing crime spree. The December 2015 armed robberies committed by Martin were the latest in a string of violent crimes committed by Martin in 2015.

On January 28, 2015, Martin robbed a branch of the Windsor County South Credit Union in Springfield Vermont. During the commission of this robbery, Martin indicated to the teller that he had a gun, although he did not display a firearm.

On February 7, 2015, Martin robbed a Shell gas station in Ludlow, Vermont. During the commission of this robbery, Martin pointed a firearm at the gas station clerk.

On February 17, 2015, Martin robbed a branch of the Citizens Bank in Springfield, Vermont. During the commission of this robbery, Martin again indicated that he had a gun, although he did not display a firearm.

On November 11, 2015, Martin robbed the Greater Falls Pharmacy in Bellows Falls, Vermont. Again, Martin indicated that he had a gun, although he did not display one.

On December 1, 2015, Martin took his crime spree into New Hampshire, committing an armed robbery of a branch of the Mascoma Savings Bank in Charlestown, New Hampshire. During this robbery, Martin assaulted others by displaying a BB gun that resembled a firearm.

On December 4, 2015, Martin committed an armed robbery at a branch of the TD Bank North in Loudon, New Hampshire. Again, Martin assaulted others by displaying a BB gun that resembled a firearm.

The collaborative team that investigated the crimes committed by Martin included federal, state, and local law enforcement agents, including agents from the Federal Bureau of Investigation; the U.S. Marshals Service; the Vermont State Police; the New Hampshire State Police; and the police departments of Brattleboro, Springfield, Ludlow, and Bellows Falls.

In addition to the agents that investigated Martin’s crimes, United States Attorney Eric Miller also thanked law enforcement partners at the U.S. Attorney’s Office in New Hampshire; the Windsor County State’s Attorney’s Office; the Windham County State’s Attorney’s Office; the County Attorney’s Office in Sullivan County, New Hampshire; and the County Attorney’s Office in Merrimack County, New Hampshire, for their cooperation in helping reach a resolution that will result in Martin pleading guilty to each of these crimes and spending significant time in federal prison for his violent crimes across multiple jurisdictions.

The United States is represented in this case by Assistant United States Attorney Kunal Pasricha. Martin is represented by attorney Jordana Levine.

The Office of the United States Attorney for the District of Vermont stated that four Quebec men were arrested on October 24, 2016 in connection with an investigation into their involvement in a fraud scheme in which the men received cash advances on access devices using compromised account information. Mathieu Baaklini, 21, of Laval, Quebec; Safwan Bensalma, 21, of Laval, Quebec; Brandon Lo, 24, of Laval, Quebec; and Nicolau Manfredi, 21, of Montreal were charged by Criminal Complaint with conspiracy to use access devices fraudulently resulting in the receipt of more than $1,000 in cash. The men appeared before U.S. Magistrate Judge John M. Conroy in Burlington on October 25, 2016 for an initial appearance. If convicted, the men face a maximum possible penalty of five years in prison and fines of up to $250,000.

According to court records, at various times between March and October 2016, the four men traveled from Quebec to Burlington, Vermont, where they used NBT Bank ATM machines in Burlington and Essex to obtain cash advances on cards using stolen account information from Canadian accountholders. ATM transaction records and bank surveillance video shows that on May 24, 2016, approximately $8,800 in cash advances were withdrawn using suspected fraudulent credit cards. Records further show that on May 25, 2016, one of the charged conspirators made $11,000 in wire transfers from Chittenden and Franklin Counties, Vermont to locations in Quebec. ATM transaction records and bank surveillance video further shows that between August 22-25, 2016, NBT Bank incurred approximately $54,000 in suspected fraud activity in the form of 500 suspected cash advances on Canadian and European credit and debit cards.

On October 21, 2016, federal agents executed a search warrant on a storage unit in Williston, Vermont, where they recovered approximately $33,000 in cash, a laptop computer, a card-reading device, and approximately 378 gift cards with markings indicating that they contained bank account information on them.

The men were arrested by Department of Homeland Security Agents at the Highgate Springs, Vermont Port of Entry as they attempted to enter the United States.

The Criminal Complaint is an accusation only and the defendants are presumed innocent until and unless proven guilty. In the event of a conviction, their sentences will be advised by the federal Sentencing Guidelines.

Homeland Security Investigations and U.S. Customs and Border Protection are conducting the investigation into this matter. Assistant U.S. Attorney Kevin J. Doyle is handling the prosecution. Baaklini is represented by Maryanne Kampmann, Esq. Bensalma is represented by Craig S. Nolan, Esq. Lo is represented by Chandler W. Matson, Esq. Manfredi is represented by Douglas G. Kallen, Esq.

The United States Attorney for the District of Vermont announced that James Bristol, 44, of Burlington, pleaded not guilty yesterday in United States District Court in Burlington to a charge of attempted bank robbery. U.S. Magistrate Judge John M. Conroy ordered that Bristol be detained pending trial, which has not been scheduled.

According to court records, on June 3, 2016, a man entered the College Street branch of Citizens Bank in Burlington and presented the teller with a note which stated that he had a gun and wanted large denomination bills. The teller told the robber she did not have large bills, only $20s, whereupon the robber took back the note and left the bank without taking any money. Less than an hour later, Burlington Police officers detained Bristol several blocks from the scene of the robbery. They later found that the demand note was in Bristol’s pocket. Bristol was originally charged in state court with attempted assault and robbery, but that charge was dismissed after a federal grand jury indicted Bristol for attempted bank robbery last week.

The United States Attorney emphasizes that the charge in the indictment is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.

If convicted, Bristol faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.

Allen is represented by the office of the Federal Public Defender. The prosecutor is Assistant U.S. Attorney Gregory Waples.

United States Attorney Eric S. Miller announced today that Assistant United States Attorney (AUSA) William B. Darrow will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Darrow has been appointed to serve as the District Election Officer (DEO) for the District of Vermont, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.

United States Attorney Miller 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.”

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 franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the 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 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Miller stated that AUSA/DEO Darrow will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: 802-951-6725.

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 local FBI field office can be reached by the public at 802-863-6316.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC 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.

United States Attorney Miller said, “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 Office of the United States Attorney for the District of Vermont stated that a grand jury sitting in Burlington has returned a five count Superseding Indictment against five people relating to the arson that occurred in Northfield on December 14, 2015. According to the Superseding Indictment, Howard Hoisington, 32, of Berlin and Jonathan Zampieri, 34, of Montpelier, have been charged with arson with death resulting for the fire that killed Brittany Burt. Howard Hoisington, Jonathan Zampieri, Tammy Wilder, 45, of Berlin, and Kimberly Hoisington, 57, of Berlin, have been charged with conspiracy to commit robbery. Richard Hoisington, 69, of Berlin and Kimberly Hoisington have been charged with conspiracy to distribute crack cocaine. Richard Hoisington and Kimberly Hoisington have been charged maintaining a crack house. Richard Hoisington has been charged with distribution of crack cocaine. The government has determined that it may seek a maximum penalty of life in prison on the arson charge. The remaining charges each carry a maximum possible penalty of 20 years in prison.

Richard and Kimberly Hoisington were arraigned today in federal court and both pleaded not guilty to the charges. Richard and Kimberly were detained pending full detention hearings. The arraignments for Howard Hoisington, Jonathan Zampieri and Tammy Wilder are scheduled for November 10, 2016.

According to court documents, on December 14, 2015, Howard Hoisington, Jonathan Zampieri, Tammy Wilder, Kevin Atwood, Howard’s mother, Kimberly Hoisington, and Tammy’s daughter, Amanda Wilder, traveled to 258 Union Street in Northfield, the residence of Brittany Burt. Howard Hoisington, Zampieri and Atwood went inside Burt’s apartment, doused Burt and her boyfriend, Efren Serrano, with gasoline and lit them on fire. Burt died in the fire and Serrano was seriously injured. Court documents reveal that the group went to Northfield to rob Serrano of his money and drugs, and that gasoline was used as a fear tactic.

Three days after the fire, on December 17, 2015, Howard Hoisington, Jonathan Zampieri and Tammy Wilder were charged with conspiracy to commit robbery. Howard Hoisington, Jonathan Zampieri and Tammy Wilder were detained in December 2015 and are still in custody. Kevin Atwood was later charged with lying to law enforcement. Kevin Atwood is now deceased.

In the course of the investigation into the arson, investigators determined that Richard Hoisington (Howard’s father) and Kimberly Hoisington had conspired to distribute cocaine base throughout 2013 and 2014. During this same period, Richard and Kimberly also maintained a crack house by permitting crack cocaine dealers from the New York City area to stay and deal drugs out of their residence. In August 2016, the Vermont Drug Task Force developed a confidential informant who ultimately purchased crack cocaine from Richard Hoisington at the Hoisington residence in Berlin.

The charges against the defendants are merely accusations and the defendants are presumed innocent until proven guilty.

This case was jointly investigated by the Vermont State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Vermont State Police Lieutenant Colonel Matthew Birmingham stated: “Today’s charges are the result of tireless work by investigators over the past 10 months and would not be possible without the collaborative efforts of those involved, specifically detectives from the Vermont State Police Major Crime Unit, Bureau of Criminal Investigation, arson investigators, federal agents from the ATF, and the Vermont Drug Task Force. I am extremely appreciative of everyone’s willingness to work together towards a common goal and to help provide closure for victims and their families.”

Mickey D. Leadingham, ATF Special Agent in Charge, Boston Field Division stated: “These new charges filed are very serious in nature and something ATF does not take lightly. The ATF Vermont Field Office, Vermont State Police, Vermont Drug Task Force and the U.S. Attorney's Office, have worked vigorously at this investigation, leading to these new charges and I commend the efforts by all the agencies involved.”

The United States is represented in this case by Assistant United States Attorney Wendy G. Fuller. Howard Hoisington is represented by Assistant Public Defender Steven Barth. Jonathan Zampieri is represented by Robert Katims. Tammy Wilder is represented by Ian Carleton. Kimberly Hoisington is represented by Peter Langrock. Richard Hoisington is represented by Mary Kehoe.

Thousands of communities participate in this weekend’s event

Boston, MA – This weekend DEA will once again conduct one of its most popular community programs: National Prescription Drug Take Back Day. On Saturday October 22 between 10 a.m. and 2 p.m. the public can dispose of their expired, unused, and unwanted prescription medications at one of 566 collection sites throughout New England, operated by 505 local law enforcement agencies and other community partners. The service is free of charge, no questions asked and most of these collection sites can be found in the lobby of your local Police Department.

America is presently experiencing an epidemic of addiction, overdose and death due to abuse of prescription drugs, particularly opioid painkillers. 6.4 million Americans age 12 and over—2.4 percent of the population—abuse prescription drugs, according to the 2015 National Survey on Drug Use and Health released last month, more than abuse cocaine, heroin, hallucinogens, and methamphetamine combined. Drug overdoses are now the leading cause of injury-related death in the United States, eclipsing deaths from motor vehicle crashes or firearms. The majority of prescription drug abusers report that they obtain their drugs from friends and family, including from the home medicine cabinet.

“The diversion of prescription pain killers contribute to the widespread abuse of opiates, is the gateway to heroin addiction, and is devastating our communities,” said DEA Special Agent in Charge Michael J. Ferguson. "Many Americans are not aware that medicines which languish in home cabinets are highly vulnerable to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are at alarming rates, as are the number of accidental poisoning and overdoses due to the illegal use of these drugs. Please take the time to clean out your medicine cabinet and make your home safe from drug theft and abuse."

Vermont’s United States Attorney, Eric Miller, added, “The misuse and abuse of prescription opioids touched off Vermont’s current heroin epidemic and continues to contribute to overdose deaths and injuries. Vermonters can play an important role in protecting public health and safety by cleaning out their medicine cabinets and safely disposing of prescription drugs they no longer need.”

Last April, during its 11th Take Back Day, the DEA New England Field Division (NEFD) participated in the Drug Take-Back Day and over the course of four hours 86,900 pounds of expired, unused, and unwanted prescription drugs were collected at 551 collection sites throughout New England. The following was the breakdown of collected weights for the six New England states:

Connecticut 8,815.50 lbs.
Massachusetts 25,028 lbs.
Maine 31,960 lbs.
New Hampshire 12,560 lbs.
Rhode Island 3,460 lbs.
Vermont 5,094.60 lbs.
Total for NEFD 86,918.1 lbs.

The public can find a nearby collection site by visiting www.dea.gov, clicking on the “Got Drugs?” icon, and following the links to a database where they enter their zip code. Or they can call 800-882-9529. Only pills and other solids, like patches, can be brought to the collection sites—liquids and needles or other sharps will not be accepted.

The Office of the United States Attorney for the District of Vermont stated that, on October 13, 2016, a Burlington jury convicted Michael J. Foreste, aka “Beast,” of Valley Stream, New York of 10 charges related to his oxycodone trafficking in Vermont over a six-year period. Specifically, the jury convicted Foreste, age 36, of (1) conspiring to distribute oxycodone in Vermont from about 2008 through June 2014; (2) seven counts charging distribution of oxycodone; and (3) two counts charging money laundering. The jury returned a not guilty verdict relating to an additional count charging oxycodone distribution. The verdict was returned following a trial spanning two weeks. Senior United States District Judge William K. Sessions III presided over the trial.

The Fourth Superseding Indictment charged Foreste with working with others to sell oxycodone from 2008 through June 2014, including Andre Clarke, Carol Clarke and Dannis Hackney. During that period, Andre Clarke served as a New York City police officer. Earlier this year, Clarke pled guilty to his role in the conspiracy and resigned from the NYPD. His sentencing is scheduled for November 7. In September 2016, Hackney pled guilty to several charges relating to his involvement in the oxycodone scheme. He is also awaiting sentencing. Carol Clarke is under federal indictment for conspiring to distribute oxycodone and awaiting trial.

According to prosecutors, Carol Clarke, who lived in Brooklyn, received a monthly prescription for hundreds of oxycodone to treat her sickle cell disease. She diverted the pills to her brother, Andre Clarke, of Long Island, who supplied them to Foreste. In the early part of the conspiracy, Foreste brought the pills to Vermont himself and sold them with the help of certain local addicts. In April 2012, however, Vermont State Police stopped Foreste in a vehicle on Interstate 91 North and seized 659 oxycodone pills from his person. Based on this event, Foreste sustained a federal conviction in 2013 for possession with intent to distribute oxycodone. He remained on pretrial release throughout that earlier case. After April 2012, Foreste began working with Hackney, of Chittenden County, who sold Foreste’s pills to Burlington area addicts. Foreste eventually began mailing the pills to Hackney via the U.S. Mail Express Mail system. The Clarkes, Foreste, and Hackney transferred drug proceeds using various bank accounts, resulting in Foreste’s two convictions for money laundering. The evidence presented at trial demonstrated that Foreste’s drug distribution in Vermont yielded him illicit profits in excess of $500,000 over the course of the conspiracy. Foreste and Hackney have been in custody since their arrests in June 2014.

Foreste’s sentencing is expected to occur in approximately four months, but is not yet scheduled. He faces a maximum term of imprisonment of twenty years on each count.

The conviction of Foreste was the culmination of a multi-agency investigation and prosecution that began in mid-2014. The collaborative effort was spearheaded by Homeland Security Investigations, with assistance from the Federal Bureau of Investigation, the Drug Enforcement Administration, the Vermont State Police, the Burlington Police Department, and the NYPD. Foreste is represented by Mark Kaplan, of Burlington, and Natasha Sen, of Brandon. The case was prosecuted by Assistant United States Attorneys Christina E. Nolan and Kevin J. Doyle.

The Office of the United States Attorney for the District of Vermont stated that Steven D. Griffin, 59, of Berlin, New Hampshire, was sentenced by Chief Judge Christina Reiss yesterday based on his conviction for making a false statement to a financial institution. Chief Judge Reiss sentenced Griffin to 24 months of home confinement as part of a five-year term of supervised release. The court also sentenced Griffin to pay $500,000 in restitution.

As part of the sentencing, Griffin admitted to submitting or causing to be submitted inflated figures for assets of Isaacson Structural Steel, Inc., including inventory, to Passumpsic Savings Bank, and other banks participating in loans totaling over $12 million, including a $2 million loan guaranteed by the Small Business Administration in late 2010. Griffin was part owner and Vice President and CFO of ISSI, which before its bankruptcy was one of the largest businesses in the North Country. ISSI fabricated steel used in commercial construction. It entered into construction contracts to provide not only the steel for commercial buildings but also to provide subcontractor services, principally the erection of the steel. ISSI purchased steel and fabricated the various pieces of steel needed for each contract at its Berlin, New Hampshire location and then shipped the steel to building sites. Early last year, ISSI’s CEO Arnold Hanson pleaded guilty to conspiring to submit false financial statements. Sentencing for Hanson is scheduled for November 23, 2016.

According to court records, between August 2007 and April 2011, ISSI officers regularly submitted false and inflated figures to the banks regarding the value of ISSI’s assets. ISSI submitted these false statements about assets in borrowing base certificates and financial statements. ISSI regularly inflated its assets by a million dollars or more. For example, in August 2007, ISSI officers discussed, and then submitted to the bank, inflated figures for the amount of money owed to ISSI for work done in connection with 303 Third St., a construction project in Boston. In early 2011, officers participated in the submission of ISSI’s draft financial statement for the financial year 2010, which contained significant overstatements about ISSI’s inventory. That financial statement had an inventory representation of approximately $12 million dollars. In fact, the value of the inventory was less than $2 million. Inventory was thus inflated by over $10 million. In April 2011, the banks learned about issues with ISSI’s inventory figures. By June 2011, ISSI was in bankruptcy, and its assets were later liquidated. In the end, the banks lost millions of dollars as a result of the fraud.

At the sentencing hearing, Griffin asked the Court to sentence him below the advisory sentencing guideline range of 51 to 63 months in jail in light of his community service and severe physical illnesses. Chief Judge Reiss agreed that in light of a variety of factors, including Griffin’s health, a jail sentence should not be imposed. The Court imposed a limit on Griffin’s freedom by imposing a lengthy period of home confinement.

The United States is represented in this matter by Assistant U.S. Attorneys Paul Van de Graaf and Timothy Doherty. Hanson is represented by George Ostler, Esq. The investigation, which is ongoing, is being conducted by the Federal Bureau of Investigation, the Office of Inspector General for the Federal Deposit Insurance Corp., and the Office of Inspector for the Small Business Administration.

The Office of the United States Attorney for the District of Vermont stated that Eric Weaver, 35, of Burlington, was sentenced to thirty months’ imprisonment by United States District Judge J. Garvan Murtha sitting in Brattleboro, Vermont. The term of imprisonment will be followed by a five-year period of supervised release by the U.S. Probation Office. Weaver previously pled guilty to failing to update his residence on the sex offender registry under the federal Sex Offender Registration and Notification Act.

Weaver was required to update his residence on the Sex Offender Registry based on his prior conviction for rape in Philadelphia, Pennsylvania in 1998, which occurred when he was 16 years old. According to court records Weaver moved to Vermont in the early summer of 2014 from Philadelphia and failed to update his residence on either the Vermont or Pennsylvania sex offender registries.

According to court records, after Weaver moved to Vermont he also started selling heroin in the Burlington area. In late November 2014, the State’s Attorney’s Office for Chittenden County charged Weaver with Aggravated Domestic Assault with a Deadly Weapon relating to a November 17, 2014 assault on his girlfriend at their 80 Pearl Street, Burlington apartment. Weaver pled guilty to that offense and received a 16-30-month state sentence. Weaver’s state sentence will be completed in May 2017. Judge Murtha ordered that the 30-month federal sentence be served concurrently to the remaining portion of the state sentence, beginning on October 3, 2016.

This case was investigated by the United States Marshals Service with assistance by the Burlington Police Department. The United States is represented by Assistant U.S. Attorney Joe Perella. Weaver is represented by Michael Desautels, Esq. of the Federal Public Defender’s Office.

The Office of the United States Attorney for the District of Vermont stated Quincy Alexander, 28, of Brooklyn, New York, was charged today in a two-count complaint filed in federal court with being a felon in possession of a firearm and with possession with intent to distribute cocaine base. Alexander is scheduled to appeared before U.S. Magistrate Judge John M. Conroy at 4:00 p.m. today.

According to the affidavit in support of the criminal complaint, Burlington Police came into contact with Alexander during their investigation of the September 28, 2016, shooting at 31 Hyde Street in Burlington, Vermont. Officers approached Alexander on September 29, 2016, as he was sitting in a vehicle matching the description of the vehicle involved in the shooting. After a trained narcotics dog alerted to the presence of narcotics, law enforcement, working with the Office of the Chittenden County State’s Attorney, obtained a search warrant for the vehicle from the Chittenden County Superior Court. The resulting search located two firearms, a 9 mm pistol and a .38 caliber revolver, and approximately 80 grams of crack cocaine packed for further distribution. During the investigation of the 31 Hyde Street shooting, police recovered 9 mm bullets within residences that had entered the premises through the exterior of the building.

Records checks indicated Alexander had two prior felony convictions for Grand Larceny from New York, prohibiting him from possessing a firearm.

Shortly after his arrest, Alexander complained of chest pains and was taken by Burlington Police to the Emergency Department at UVM Medical Center for treatment. Although he remained handcuffed while in the Emergency Department, Alexander attempted to escape, fleeing his examination room. He was re-apprehended by Burlington Police officers before he could leave the facility.

The complaint filed today is an accusation only and the defendant is presumed innocent until and unless proven guilty. If convicted, Alexander could face up to ten years in prison for his possession of a firearm as a felon, and up to twenty years for his possession with intent to distribute crack cocaine.

“The combination of drugs and guns is a lethal one that has no place in the Burlington community,” United States Attorney Eric Miller said. He commended the Burlington Police Department and the Chittenden County State’s Attorney’s Office for their quick work in apprehending Alexander, and thanked the U.S. Drug Enforcement Administration and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives for their support of the investigation.

"We will not tolerate gun violence in Burlington and our response to it will always be relentless," said Brandon del Pozo, the Burlington Chief of Police. "I'd like to thank our officers for their fast and thorough search for the suspect's vehicle and the safe and careful work they did once it was located. We're grateful to the US Attorney's office and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives for their assistance. We're fortunate to have this team protecting our city."

Mickey D. Leadingham, Special Agent in Charge, ATF Boston Field Division, stated, "ATF has a strong presence in Burlington, Vermont, and works closely on combatting gun violence with the Burlington Police Department and the U.S. Attorney’s Office. ATF will continue to build on these relationships in its efforts to curb gun violence, along with the illegal possession of firearms."

AUSA Michael P. Drescher represents the United States. The Office of the Federal Public Defender represents Alexander.

The United States Attorney for the District of Vermont announced that Sally Kirby, 61, of Essex Junction, was sentenced today in United States District Court in Burlington to 15 months of imprisonment following her guilty plea to a federal forgery charge. U.S. District Judge William K. Sessions III also ordered that Kirby serve three years of supervised release following completion of her prison term and pay restitution of more than $178,000. The court directed Kirby to surrender to the Bureau of Prisons on October 25 to begin serving her sentence.

Last April, the United States Attorney's Office filed a one-count information charging Kirby with forging checks of her employer, Hunger Free Vermont. Kirby pled guilty to that charge in May. According to the information, Hunger Free Vermont is a non-profit educational and advocacy organization which provides nutrition education and access to nutrition programs to Vermont's children, families and communities. In 2004, Sally Kirby was hired as the Director of Finance for HFV. Her duties included handling payroll, accounts payable, financial statements and grant allocations.

According to the information, between June 2009 and September 2015, Kirby embezzled about $165,000 from the organization. She did that primarily by issuing HFV checks to herself without authorization, then forging the signature of HFV's executive director on the checks. She deposited many of the checks into a personal credit union account she maintained. Kirby attempted to conceal her embezzlement by altering some entries in HFV's accounting system to make it appear as though checks she issued to herself had been made payable to vendors. The embezzlement was discovered last October and Kirby was promptly fired.

This case was investigated by the Federal Bureau of Investigation.

Kirby is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.

The United States Attorney for the District of Vermont announced that Douglas Allen, 58, of Burlington, pleaded not guilty today in United States District Court in Burlington to a charge of bank robbery. U.S. Magistrate Judge John M. Conroy ordered that Allen be detained pending trial, which has not been scheduled.

According to court records, on May 21, 2016, a man wearing a hat and sunglasses entered the College Street branch of Merchants Bank in Burlington and presented the teller with a note which asked for $6000. The teller gave the robber approximately $1780. Burlington Police officers arrested Allen five days later, on May 26, after receiving several tips from persons who were able to identify Allen from bank surveillance pictures. Allen was originally charged in state court with grand larceny, but that charge was dismissed after a federal grand jury indicted Allen for robbery last week.

The United States Attorney emphasizes that the charge in the indictment is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.

If convicted, Allen faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.

Allen is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.

The Office of the United States Attorney for the District of Vermont stated that on August 29, 2016, Michael E. Fisher was sentenced to 10 years in federal prison by Chief United States District Court Judge Christina Reiss.

In February and March, 2015, Fisher contacted several Burlington area middle school girls, aged 12-14, through Facebook. The girls reported the contacts to their parents and to the Burlington Police Department. Fisher was a registered sex offender at the time, based upon a prior Vermont felony conviction. In response, Vermont’s Internet Crimes Against Children Task Force (“ICAC”) initiated an investigation. ICAC official and South Burlington Police Sergeant Andrew Chaulk made undercover contact with Fisher on Facebook, posing as a 13-year-old middle school student. Over the course of three days, Fisher sent a multitude of Facebook messages to the purported student, pressing her to have sex with him. He urged her to meet him at Dorset Street Park in South Burlington at Noon on April 3, 3015, to have sex in a public restroom. Upon arrival at the park on April 3 at Noon, he was arrested by a U.S. Secret Service agent assisting in the investigation, and Sgt. Chaulk.

In March, 2016, Fisher was convicted after a jury trial in Burlington of attempting to persuade, induce, entice or coerce a minor to engage in illegal sex, using a facility of interstate commerce.

Under the U.S. Sentencing Guidelines, based upon the offense and his recidivism, Fisher’s imprisonment range was 151-188 months. The federal statute under which he was convicted provided for a mandatory minimum 10 years of imprisonment. At a sentencing hearing on August 29, Chief Judge Reiss imposed the 10-year term, to be followed by 10 years of supervised release.

Fisher has been in custody since his 2015 arrest. The United States Attorney thanked the Burlington Police Department, the South Burlington Police Department, ICAC, and the U.S. Secret Service for their work on the case. Fisher was represented by Federal Public Defender Michael Desautels. The United States was represented by Assistant U.S. Attorneys William Darrow and Kunal Pasricha.

The Office of the United States Attorney for the District of Vermont stated that David Vincent Borry, age 58, pleaded guilty yesterday before U.S. District Court Judge J. Garvan Murtha in Brattleboro to knowingly defrauding a health care plan administered by the U.S. Department of Veterans Affairs.

A Grand Jury Indictment filed on February 11, 2016, alleged that Borry obtained medical services from the Veterans Administration Medical Center in White River Junction, Vermont, by falsely claiming to be a veteran of the United States Army. In Court yesterday before Judge Murtha, Borry admitted claiming to be an Army veteran who served in the Vietnam War in order to obtain veterans benefits. Judge Murtha ordered a presentence investigation and scheduled sentencing for January 17, 2017. Borry is at liberty subject to pretrial release conditions.

The case was investigated by the Veterans Administration Office of the Inspector General, Criminal Investigation Division, and the Veterans Administration police in White River Junction. Borry is represented by Federal Public Defender Michael Desautels. The United States is represented by Assistant U.S. Attorney William Darrow.

The Office of the United States Attorney for the District of Vermont announced that Brett Ferrell, age 31, from New York, has been arrested and indicted for traveling in interstate commerce with the intent to engage in illicit sexual conduct with a minor. Ferrell made his initial appearance in federal court in Burlington on August 30, 2016 and he was arraigned on September 12, 2016. Magistrate Judge John M. Conroy ordered Ferrell detained pending trial.

According to court papers, in mid-August 2016, Ferrell made multiple postings on Craigslist seeking to meet girls under the age of 18 for the purpose of sex. Law enforcement officers responded to one of the Craigslist postings using an undercover persona of a 13-year-old girl. In multiple communications with someone he believed was a 13-year-old girl from Vermont, Ferrell expressed an interest in meeting to have sex. Ferrell, who lived in New York, indicated that he would travel to Vermont for such a meeting, and went as far as to make plans to meet at a particular hotel at a particular time for sex with this supposed 13-year-old. On August 29, 2016, Ferrell traveled from New York to Vermont for this illicit encounter, at which point he was arrested by law enforcement officers at the designated meeting place.

The charges against Ferrell are merely accusations and Ferrell is presumed innocent until proven guilty. If convicted, Ferrell faces a maximum penalty of 30 years in prison, although his actual sentence will be advised by the federal sentencing guidelines.

The collaborative team investigating the case against Ferrell includes law enforcement agents from Homeland Security Investigations in Vermont and New York, agents from Custom and Border Patrol, and agents from the Internet Crimes Against Children Task Force.

The United States is represented in this case by Assistant United States Attorney Kunal Pasricha. Ferrell is represented by Assistant Federal Defender Elizabeth K. Quinn.

Ferrell’s prosecution is part of Project Safe Childhood, a nationwide Department of Justice initiative designed to protect children from online exploitation and abuse. In Vermont, federal prosecutors are teaming up with federal, state, and local law enforcement agents to identify, investigate, and prosecute those individuals who prey upon children and those that distribute, receive, or manufacture child pornography. For more information on Project Safe Childhood, including resources on internet safety education, please visit www.usdoj.gov/psc.

The Office of the United States Attorney for the District of Vermont stated that, on September 8, 2016, Rebecca Lawrence, 32, of Winooski, Vermont, was sentenced to 25 months in federal prison after her guilty plea to charges that she distributed heroin. U.S. District Court Judge Geoffrey W. Crawford also ordered that Lawrence serve three years of supervised release after her prison term.

According to court records, in 2014, Lawrence was convicted in the Southern District of New York on charges that she conspired to distribute controlled substances. For this offense, she was sentenced to a term of time served followed by five years of supervised release. In March of 2015, responsibility for Lawrence’s supervision was transferred to the District of Vermont.

In November and December of 2015, while Lawrence was still serving her term of federal supervised release, the Vermont State Police Drug Task Force used a confidential informant to conduct a series of controlled purchases of heroin from her. She was arrested on December 18, 2015 and charged with distributing heroin in violation of the Controlled Substances Act. Lawrence pled guilty to this offense on May 6, 2016.

For her crime, Lawrence faced a statutory maximum term of 20 years in prison. The United States Sentencing Guidelines, which are advisory, recommended that Lawrence receive a prison term of between 21 and 25 months. The Guidelines also recommended that Lawrence receive an additional prison term for violating her federal conditions of release. Judge Crawford decided that Lawrence should serve 15 months for her drug offense followed by an additional 10 months for violating her federal conditions of release, resulting in a total sentence of 25 months in prison. In determining the appropriate sentence, Judge Crawford considered the gravity of the offense and Lawrence’s criminal record, among other factors.

United States Attorney Eric Miller commended the efforts of the Vermont State Police Drug Task Force and the Burlington Police Department. United States Attorney Miller noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont. According to United States Attorney Miller, the United States Attorney’s Office and its law enforcement partners will continue to disrupt the flow of heroin into Vermont and hold drug dealers accountable for their serious crimes against the community.

The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Lawrence is represented by Michael Shklar from Newport, New Hampshire.

The Office of the United States Attorney for the District of Vermont stated that Mark Caron, 53, of Burlington, was sentenced to twenty-five months imprisonment by United States District Judge Geoffrey Crawford. The term of imprisonment will be followed by a three-year period of supervised release by the U.S. Probation Office. Caron had previously pled guilty to possessing a firearm after having been convicted of a felony offense, in this case six prior felony offenses. The Indictment charged that three of the defendant’s six prior felony offenses were violations of state abuse prevention orders.

According to court records, on September 7, 2015, Caron stole a handgun from his son in Burlington and then traveled to the Swanton, Vermont residence of a friend of Caron’s ex-girl-friends. Once there, Caron accused the friend of having contact with Caron’s ex-girlfriend. The Government alleged that Caron then threatened to shoot this man while Caron was brandishing a firearm. The Government also alleged that Caron had previously threatened his girlfriend, stating he was going to “bash her head in.”

Caron had previously been sentenced in Superior Court in Franklin County to a 58-day sentence on a plea of guilty to a state charge of Aggravated Assault with a Deadly Weapon relating to the September 7, 2015 assault. In choosing to prosecute the case federally, United States Attorney Eric Miller stated, “Domestic abuse and the illegal possession of firearms are a potentially deadly combination. When convicted felons – particularly those with a proven history of domestic abuse – illegally possess and use guns to threaten others, we will continue to pursue federal charges and enhanced federal penalties to protect Vermont’s communities.”

The United States Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives have been working closely with the Vermont Attorney General’s Office to better coordinate the combined state and federal response to the particularly dangerous combination of illegal firearm possession and domestic violence.

Vermont’s Attorney General, Bill Sorrell, lauded the state and federal cooperation that led to Mr. Caron’s federal conviction, “It's important that state and federal authorities work together to address domestic violence given the relatively high proportion of homicides in our state that are domestic-violence related. It's also important that we work together to enforce orders of protection, and to ensure those prohibited persons who violate state and federal law by continuing to possess firearms experience serious consequences for their behavior given the documented risk of lethality this poses for domestic violence victims.”

Mickey D. Leadingham, Special Agent in Charge of the ATF’s Boston Field Division, added, "Domestic violence with the threat or use of a firearm is something we take very seriously. We will continue to partner with the U.S. Attorney’s Office and the Vermont Attorney General’s Office to arrest and prosecute the individuals who commit these acts while being prohibited from possessing firearms under federal law."

This case was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives and the Swanton Police Department. The United States is represented by Joe Perella and Caron is represented by Steven Barth, Esq. of the Federal Public Defender’s Office.

The United States Attorney for the District of Vermont announced that Neiman Groce, 31, of Poultney, was sentenced today in United States District Court in Burlington to 18 months of imprisonment following his guilty plea to a charge of wire fraud. Chief U.S. District Judge Christina Reiss also ordered that Groce serve three years of supervised release following completion of his prison term and pay restitution of nearly $75,000. The court directed Groce to surrender to the Bureau of Prisons on October 25 to begin serving his sentence.

On December 2, 2015, a federal grand jury in Rutland returned a three-count indictment charging Groce with embezzlement, wire fraud and forgery. According to the indictment, between approximately 2008 and late 2012, Groce was employed by Rutland Plywood Corporation. In 2012, Groce was promoted to Human Resources Director and assumed responsibility for administering the company's section 401(k) employee retirement plan. According to the indictment, between June and November 2012, Groce tried to embezzle approximately $88,000 from the retirement accounts of five former Rutland Plywood employees. Groce accomplished the embezzlement by forging employees' signatures on benefit plan withdrawal forms and faxing the forms to the company which managed the retirement plan. The forged forms contained directions that the money withdrawn from the employees' accounts be electronically transferred to one of two bank accounts that Groce controlled. During that time, more than $75,000 in retirement plan funds was actually transferred into Groce's accounts.

The indictment charged Groce with stealing an additional $3,000 from Rutland Plywood by forging and altering a series of company checks to third parties to make them payable to himself, then cashing those checks.

Groce pled guilty to the wire fraud charge last May.

This case was investigated by the Federal Bureau of Investigation and the Vermont State Police.

Groce is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.

The United States Attorney for the District of Vermont and the Swanton Sector Office of the United States Border Patrol announce that Paulo Abelha, 49, a citizen of Portugal, pleaded not guilty today in United States District Court in Burlington to an indictment which charges him with reentering the United States after having been twice deported. U.S. Magistrate Judge John M. Conroy ordered that Abelha be held without bail pending trial, which has not been scheduled. Abelha has been detained since his arrest on August 20.

According to court records, Abelha is a citizen of Portugal who moved to the United States in 1971 with his parents. In 1994, after he was convicted of violent felonies and served a prison sentence in Massachusetts, Abelha was deported to Portugal. In July 2016, federal officials learned that Abelha had at some point come back to the United States illegally and was living in Fall River. He was taken into custody and again deported to Portugal on August 16.

Three days later, on the evening of August 19, Canadian law enforcement officers notified Border Patrol agents in Vermont that a man had been dropped off at a place just north of the border and had then walked into the United States near Alburgh. Border Patrol agents went to the area and soon found Abelha, who was carrying a backpack. Documents in Abelha's possession showed that he had flown into Montreal from Portugal earlier that day. Abelha did not enter the United States through a port-of-entry and is ineligible to return to the United States.

The United States Attorney emphasizes that the charge in the indictment is merely an accusation, and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Abelha faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.

The Swanton Sector Border Patrol is responsible for securing the land border between ports of entry in Vermont as well as New Hampshire and northeastern New York. The assistance of citizens is invaluable in helping the U.S. Border Patrol accomplish their border security mission and they welcome community members to help them keep our nation’s borders safe by reporting suspicious activity at 1-800-689-3362.

For more on CBP’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.
Abelha is represented by Assistant Federal Defender David McColgin. The prosecutor is Assistant U.S. Attorney Gregory Waples.

The United States Attorney for the District of Vermont announced that Dennis Crawford, 47, of Newport, pled not guilty last Friday in U.S. District Court in Burlington to a charge of wire fraud. U.S. Magistrate Judge John M. Conroy released Crawford on conditions pending trial, which has not been scheduled.

On July 25, 2016, a federal grand jury returned a one-count indictment charging Crawford with wire fraud. According to the indictment and other court records, in April 2015, Crawford was appointed power-of-attorney for his elderly step-father. Under the terms of the power-of-attorney, Crawford was permitted to make financial decisions on his step-father's behalf. After acquiring the power-of-attorney, Crawford placed his name on bank accounts his step-father held. According to court records, between June and August 2015, Crawford transferred approximately $200,000 from his step-father's bank accounts to accounts controlled only by Crawford. Crawford allegedly used much of this money to buy several vehicles for himself and family members, as well as furniture and other household items. In August 2015, the Vermont State Police learned Crawford may have been abusing his step-father and started an investigation. Crawford's power-of-attorney was revoked, and in November 2015, Crawford was charged in state court with financial exploitation of a vulnerable adult. The state charge was dismissed when the federal grand jury returned its indictment.

If convicted, Crawford faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.

This case was investigated by the Vermont State Police and the Federal Bureau of Investigation.

Crawford is represented by the Office of the Federal Public Defender. The prosecutor is Assistant U.S. Attorney Gregory Waples.

The Office of the United States Attorney for the District of Vermont announced that Jose Ygnacio Sosa-Ramirez, 55, a citizen of the Dominican Republic, was sentenced yesterday for illegally reentering the United States after having been previously removed, and violating the terms of his supervised release on a prior federal conviction. Chief District Judge Christina Reiss sentenced Sosa-Ramirez to a 50-month term of incarceration for having illegally reentered the United States, and a consecutive 24-month term of incarceration for violating the terms of his supervised release, resulting in a total sentence of 74 months.

According to Court records, in June of 2014, Sosa-Ramirez was convicted of conspiracy to distribute more than a kilogram of heroin in the United States District Court for the Southern District of New York, sentenced to time served (approximately 23 months), and a 2-year term of supervised release. He was subsequently deported from the United States on October 8, 2014. On October 19, 2015, Sosa-Ramirez entered the United States at the Highgate Port of Entry in Highgate Springs, Vermont, as a passenger aboard a Greyhound Bus. Sosa-Ramirez presented the Customs and Border Protection Officer an official United States passport in the name of Walter Kahigas. The Customs and Border Protection Officer referred Sosa-Ramirez to secondary inspection, after discovering a database alert associated with that identity. Sosa-Ramirez subsequently admitted the Walter Kahigas passport was obtained through fraudulent statements. Investigation of Sosa-Ramirez’s criminal history revealed he had nine prior felony convictions, including convictions for gun trafficking, document fraud, possession with intent to distribute heroin, and conspiracy to distribute heroin.

United States Attorney Eric S. Miller commended the efforts of United States Customs and Border Protection, in the arrest and prosecution of Sosa-Ramirez.

Sosa-Ramirez was represented by Bradley Stetler, Esq. The United States was represented by Assistant U.S. Attorney Jonathan A. Ophardt.