District of Vermont

The Office of the United States Attorney for the District of Vermont stated that, on August 12, 2015, Jonathan Nisbett, age 23, of Newark, New Jersey, was charged via federal criminal complaint with possessing with intent to distribute heroin. Nisbett made his initial appearance in federal court on August 12, 2015 before U.S. Magistrate Judge John M. Conroy. At that hearing, Judge Conroy scheduled a detention hearing for Monday, August 17, 2015. At the detention hearing, the Court will decide whether Nisbett will be detained pending trial or released to the supervision of the U.S. Probation Office. The U.S. Attorney’s Office has filed a motion asking the Court to detain Nisbett.

According to court records, the Vermont State Police Drug Task Force conducted a lengthy investigation into potential heroin distribution by Nisbett. On the evening of August 11, 2015, Vermont State Police officers arrested Nisbett at the Amtrak train station in Essex Junction, Vermont after Nisbett arrived in a train from New York City. In Nisbett’s bag, officers found approximately 2,250 bags of heroin. Colonel Matthew Birmingham of the Vermont State Police praised the work of the Drug Task Force, noting that Nisbett’s arrest was the culmination of many months of work by the local, state, and federal agents and officers assigned to the Task Force.

If convicted on the current charge, Nisbett would face a statutory maximum term of 20 years in prison. His actual sentence would be determined with reference to the federal sentencing guidelines. United States Attorney Eric Miller emphasized that the charge in the criminal complaint is only an accusation and Nisbett is presumed innocent unless and until he is proven guilty.

United States Attorney Miller added, “This case is a perfect example of federal, state, and local law enforcement agencies working hand-in-hand to combat heroin distribution in Vermont.” Miller commended the efforts of the agencies involved in investigating heroin crimes, which include the Drug Enforcement Administration, the Bureau of Alcohol Tobacco Firearms and Explosives, the Federal Bureau of Investigation, Homeland Security Investigations, the Vermont State Police Drug Task Force, and the Burlington Police Department.

The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Nisbett is represented by David McColgin of the Federal Public Defender’s Office.

The Office of the United States Attorney for the District of Vermont stated that Derick Niles, age 37, was sentenced yesterday in United States District Court in Burlington to 16 months in prison, followed by three years of Supervised Release, on his conviction for being a drug user in possession of a firearm.

Niles’s federal conviction arose from his September 25, 2013, confrontation with various law enforcement agencies from the roof of his Newport, Vermont, garage, armed with a rifle. Niles also had ordered his teenage son into the woods with another loaded rifle to maintain a second firing position. The stand-off lasted about five hours. Niles pleaded guilty to the federal firearms charge, and admitted being a drug user, early this year.

At the August 11, 2015, sentencing hearing before U.S. District Court Chief Judge Christina Reiss, the Court rejected Mr. Niles’ argument that his actions could be partially excused by his drug use at the time of the confrontation, adding that the volatile situation could have led to someone being shot. Niles has multiple prior misdemeanor convictions for various crimes during 1995-2014.

Niles has been in the custody of the U.S. Marshal’s Service since June of 2015. The case was investigated by the Bureau of Alcohol, Tobacco, and Firearms, and the Newport Police Department. Niles was represented by Assistant Federal Defender Steven Barth. The United States was represented by Assistant U.S. Attorney William Darrow.

The United States Attorney for the District of Vermont announced that Paul Hebert, 50, of Gloucester, Massachusetts, formerly of Barre, Vermont, pleaded not guilty today in United States District Court in Burlington to charges related to Social Security fraud and Medicaid fraud. U.S. Magistrate Judge John M. Conroy released Hebert on conditions pending trial, which has not been scheduled.

On July 23, 2015, a federal grand jury in Burlington returned a four-count indictment charging Hebert with making a false statement of material fact in a matter before the Social Security Administration; concealing and failing to disclose information material to the Social Security Administration’s determination of continued eligibility for benefits; concealing material facts in connection with a matter involving a health care benefit program; and making false statements on an application to receive Vermont Medicaid benefits. According to the indictment, Hebert falsely claimed to be disabled, living alone, with no income, no vehicle, and no assets, when, in fact, he was working as a tuna fisherman and appearing on television, lived with a woman and his child, owned a vehicle, and, at one point, owned a housing unit. The indictment alleges Hebert fraudulently obtained at least $34,500 of Social Security Income Program benefits and $9,500 of Medicaid benefits.

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

If convicted, Hebert faces up to five years imprisonment, and a fine of up to $250,000 on each count of the indictment. The actual sentence would be determined with reference to federal sentencing guidelines.

“The Social Security Administration’s Office of the Inspector General is committed to pursuing those who defraud Social Security’s vital programs and abuse the public trust,” said Scott Antolik, the Special Agent-in Charge of the SSA Office of Inspector General, Boston Field Division. “Supplemental Security Income is a critical safety net for our most vulnerable citizens, and we will continue to work to uphold its integrity through our collaborative efforts with State and Federal agencies.”

“Misrepresenting your income and life circumstances in order to receive Medicaid benefits, as alleged in this case, is illegal and a waste of funds designed to provide health care services for low income and disabled individuals,” said Special Agent in Charge Phillip M. Coyne, Department of Health and Human Services Office of Inspector General, Boston Regional Office. “Our agency will continue to work with our law enforcement partners to protect this program from fraud, waste and abuse.”

United States Attorney Eric S. Miller commended the efforts of the SSA Office of Inspector General, Boston Field Division; HHS Office of the Inspector General, Boston Regional Office; and the National Oceanic Atmospheric Administration, Office of Law Enforcement, in the investigation and prosecution of Hebert. Miller added, “Our office will continue to prioritize the prosecution of fraud cases, particularly when the alleged fraud involves taxpayer dollars intended to serve Vermonters who are most in need.”

Hebert was represented at the hearing by Timothy Fair, Esq. of Blodgett, Watts, Volk & Sussman, P.C. The prosecutor is Assistant U.S. Attorney Jonathan Ophardt.

The Office of the United States Attorney for the District of Vermont announced that James Moorcroft, 50, of Brookfield, Vermont, was sentenced today in United States District Court in Burlington to six months of imprisonment following his guilty plea to charges that he possessed eight trucks and tractors which had crossed state lines after being stolen. U.S. District Judge William K. Sessions III ordered that Moorcroft serve three years of supervised release following completion of his prison term. As a condition of supervised release, the court required Moorcroft to serve an additional six months of home confinement when he gets out of jail. The court ordered Moorcroft to pay restitution of more than $122,000. Moorcroft was directed to surrender to the Bureau of Prisons on September 8 to begin serving his sentence.

On August 13, 2014, a federal grand jury in Rutland returned a seven count indictment accusing Moorcroft of possessing six trucks and two farm tractors which had been transported across state lines after being stolen. According to the indictment, between 2000 and 2012, Moorcroft orchestrated the thefts of eight trucks and tractors from locations in Vermont, New York, Massachusetts and Maine. Moorcroft then transported the stolen equipment to a farm he lives on in Brookfield, where he used the vehicles. Moorcroft stripped the vehicle identification numbers off the stolen equipment, affixed replacement VINs and registered the vehicles in Vermont. The pieces of equipment were worth about $193,000 when stolen.

In February 2014, police in Connecticut examined one of the stolen vehicles at the home of a relative of Moorcroft's and discovered that the public VIN did not match a confidential VIN hidden within the vehicle. At that point, authorities theorize, Moorcroft panicked and decided to dispose of the stolen equipment he had on his farm. In February and March 2014, authorities recovered all eight stolen trucks and tractors after they had been abandoned or moved to locations in Vermont, Connecticut, New York, Massachusetts and New Hampshire.

This case was investigated by the Vermont Department of Motor Vehicles.

Moorcroft is represented by Natasha Sen. The prosecutor is Assistant U.S. Attorney Gregory Waples.

The Office of the United States Attorney for the District of Vermont stated that Bobbie Jo Austin, 35, of St. Johnsbury, Vermont, was sentenced on July 27, 2015, in United States District Court in Burlington, Vermont, to serve a two-year period of probation following her conviction on one count of converting Supplemental Security Income Benefits from the intended beneficiary, in violation of 42 U.S.C. § 1383a(a)(4). Judge William K. Sessions III also ordered Austin to pay $1,500 in restitution and a $100 special assessment.

According to court records and proceedings, in approximately 2008, BOBBIE JO AUSTIN applied to be the Representative Payee for Supplemental Security Income benefits for her child, who had been determined to be disabled. In agreeing to be the Representative Payee, BOBBIE JO AUSTIN agreed, among other things, to use the funds for the benefit of her minor child, and to notify the Social Security Administration (SSA) if her minor child stopped living with her. The benefit payments started in June 2009. In May 2010, BOBBIE JO AUSTIN declared under penalty of perjury when she completed a Representative Payee Report that her minor child lived with her and of the $9,052.00 she had received for the child's care and support, she spent $4,800.00 on the child and $4,252.00 on living expenses and bills related to the child. In April 2011, BOBBIE JO AUSTIN declared under penalty of perjury when she completed a Representative Payee Report that her minor child lived with her and of the $8,712.00 she had received for the child's care and support, she spent the entire amount on the child. BOBBIE JO AUSTIN did not notify the SSA that the minor child was removed from her custody by the Vermont Department of Children and Families on May 29, 2009, and was ultimately adopted by another family on March 9, 2011.

“Making false statements to Social Security to fraudulently misuse Supplemental Security Income—a government payment intended to assist those truly in need—is an intolerable offense,” said Scott Antolik, Special Agent-in-Charge, SSA Office of Inspector General, Boston Field Division. “We will continue to partner with the U.S. Attorney’s Office in Vermont to pursue all forms of fraud against Social Security and its beneficiaries, especially instances of representative payee fraud that affect our most vulnerable citizens.”

United States Attorney Eric S. Miller commended the efforts of the SSA Office of Inspector General, Boston Field Division, in the investigation and prosecution of Austin. The prosecution of Austin was handled by Assistant U.S. Attorney Barbara A. Masterson. Austin was represented by Assistant Federal Public Defender Elizabeth K. Quinn.

The Office of the United States Attorney for the District of Vermont announced that Patricia Merz, 58, of Niskayuna, New York, and her brother, Christopher McGuigan, 53, of Rutland, have been sentenced in United States District Court in Burlington following their convictions on federal fraud and conspiracy charges. Today, Chief U.S. District Judge Christina Reiss sentenced Merz to time served, to be followed by three years of supervised release. As a condition of supervised release, Merz must spend the next six months in home confinement. This past January, Judge Reiss sentenced McGuigan to time served, followed by three years of supervised release. The court ordered Merz to pay restitution totaling about $52,000 and McGuigan to pay about $40,000. .

In 2014, a federal grand jury in Rutland returned a superseding indictment charging the defendants with conspiracy, wire fraud, interstate transportation of stolen money and forgery. According to the indictment, the defendants' mother, Annelise McGuigan, died in Bennington in 2009. She left no will. In late 2009, the Bennington probate court appointed Merz and McGuigan as co-administrators of their mother's estate. As administrators, they had a legal duty to prepare an inventory of estate assets, pay the estate's debts and render an accounting to the court.

According to the indictment, Annelise McGuigan owned a house in Rupert at the time of her death. With the court's permission, Merz and McGuigan sold the house in 2010. The sale netted the estate about $180,000. Although Merz and McGuigan had received claims against the estate totaling more than $88,000 -- debts incurred for funeral expenses, property maintenance, credit card expenses and nursing home and medical care -- Merz and McGuigan never paid any of those obligations. Instead, they used virtually all of the estate funds to benefit themselves, spending the entire $180,000 within about one year. Merz withdrew about $50,000 from the estate account by forging McGuigan's signatures on numerous banking withdrawal slips.

In October 2014, following a three-day trial, a federal jury convicted Merz on all four counts. McGuigan, who cooperated with the investigation, pled guilty to conspiracy.

This case was investigated by the Federal Bureau of Investigation.

Merz is represented by Federal Public Defender Michael Desautels. McGuigan is represented by Robert Behrens. The prosecutors are Assistant U.S. Attorneys Gregory Waples and Nikolas Kerest.

The United States Attorney for the District of Vermont announced that Craig Smith, 25, of Wells River, was sentenced today in United States District Court in Rutland to 18 months of imprisonment following his guilty plea to a charge that he unlawfully possessed a firearm as a convicted felon. U. S. District Judge Geoffrey Crawford also ordered that Smith serve a three-year term of supervised release upon completion of his prison term. Smith has been incarcerated since his arrest last December.

On December 11, 2014, a federal grand jury returned a two-count indictment charging Smith with being a felon-in-possession of a firearm and being a drug user in possession of a firearm. According to court records, on December 1, 2014, Smith sold a .22 caliber revolver for $150 to a confidential informant working with the Vermont State Police. Smith is prohibited from possessing any firearms because he was convicted in 2014 of accessory after the fact to assault and robbery. At the time of the gun sale, Smith was also a heroin addict. Smith pled guilty to the felon-in-possession charge in March.

Smith is represented by Assistant Federal Public Defender Elizabeth Quinn. The prosecutor is Assistant U.S. Attorney Gregory Waples.

The United States Attorney for the District of Vermont announced that Marcus Delille, 26, of Brooklyn, New York, pleaded not guilty today in United States District Court in Burlington to possessing counterfeit credit cards and identification documents. U.S. Magistrate Judge John M. Conroy released Delille on conditions pending trial, which has not been scheduled.

On June 17, 2015, a federal grand jury in Rutland returned a two-count indictment charging Delille with fraudulently possessing 15 or more counterfeit access devices and unlawfully possessing five or more false identification documents. According to court records, Delille was stopped for speeding by a Vermont State trooper on April 23, 2015 just north of Brattleboro. During the course of the traffic stop, the trooper discovered that Delille had in the rental car he was driving and on his person about forty counterfeit credit cards that had not been issued to him, as well as counterfeit driver's licenses which appeared to have been issued by California, Texas, Pennsylvania and Illinois. Delille was originally charged in state court with identity theft but those charges were dismissed after the federal indictment was returned.

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

If convicted, Delille 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.

Delille 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 Gregory Dean Gotchie, age 36, of Caledonia County, Vermont, was sentenced yesterday in U.S. District Court in Brattleboro to 87 months in jail, for failing to register as a sex offender, and for violating federal conditions of supervised release.

In 2011 Gotchie was sentenced by U.S. District Court Judge J. Garvan Murtha in Brattleboro for failing to register as a sex offender. The court imposed a sentence of 51 months in jail, with 10 years of supervised release, after finding that he sexually assaulted a woman while in non-registration status. Gotchie was required to register as a sex offender based upon his 2006 statutory rape conviction in the State of Maine.

After serving his 51 month sentence, in 2014 Gotchie absconded from supervised release and relocated to upstate New Hampshire. At sentencing yesterday in Brattleboro, Judge Murtha sentenced Gotchie to another 63 months in prison for the failure to register offense (aggravated based on the finding that he sexually assaulted a woman), along with a consecutive 24-month term for violating the 2011 supervised release conditions.

Gotchie has been in the custody of the U.S. Marshal’s service since his July, 2014, arrest in New Hampshire. The case was investigated by the U.S. Marshal’s Service and the New Hampshire State Police. Gotchie was represented by Federal Public Defender Micheal Desautels. The United States was represented by Assistant U.S. Attorney William Darrow.

The Office of the United States Attorney for the District of Vermont stated that Andre Clarke, age 36, of the Bronx, New York, was arrested today in Queens for conspiring to distribute Oxycodone in Vermont from 2011 through June 2014. Clarke, who has been employed as a New York City police officer since 2002, will have his initial appearance tomorrow in federal court in Brooklyn. At this hearing, he is expected to be given a date to report to Vermont federal court for arraignment. At the arraignment in Vermont, he will enter a plea to the charge. On July 7, 2015, a federal grand jury sitting in Burlington handed down a multi-count Indictment, which charges Clarke, Michael Foreste, and Dannis Hackney with the Vermont Oxycodone conspiracy. Foreste and Hackney are charged with additional drug trafficking and money laundering offenses.

According to prosecutors, Clarke, who lived in the Bronx and Long Island during the events in question, supplied oxycodone to Michael Foreste, of Valley Stream, New York. Foreste, in turn, supplied the pills to Dannis Hackney, of Burlington, Vermont, who sold them to Burlington area addicts. Foreste personally brought Hackney pills, and sometimes sent them via U.S. Mail. Clarke, Foreste, and Hackney transferred drug proceeds using various bank accounts. Foreste and Hackney are also each charged with two counts of money laundering based on this banking activity. Foreste and Hackney have been in custody since their arrests in June 2014 and are awaiting trial.

The Indictment charging Clarke with drug trafficking is an accusation only; he is presumed innocent unless and until proven guilty. If convicted on the oxycodone conspiracy charge, each defendant faces up to 20 years in prison. The money laundering counts carry also carry a maximum penalty of 20 years' imprisonment. The actual sentence, in the event of conviction, will be determined by the Court with reference to the advisory Federal Sentencing Guidelines and other statutory sentencing factors.

The investigation spanned more than a year and was a collaborative effort of Homeland Security Investigations; the Federal Bureau of Investigation; the Drug Enforcement Administration; and the New York City Police Internal Affairs Bureau.

Assistant United States Attorney Christina E. Nolan is handling the prosecution.

The Office of the United States Attorney for the District of Vermont stated that Yves Bolduc, President of the Quebec cattle feed brokerage and manufacturing company, Meunerie Sawyerville, Inc., appeared today in United States District Court in Rutland to enter a plea of guilty on behalf of the Canadian corporation. The defendant corporation pled guilty to one felony count of making a false statement to Customs and Border Protection officials, and one felony count of fraudulently causing the cattle feed drug monensin to be introduced into interstate commerce at a level of concentration significantly higher than that allowed by the Food and Drug Administration.

According to court documents, on or about Sept. 12, 2012, Meunerie Sawyerville sent a driver into the United States with a truckload of cattle feed medicated with the regulated drug monensin at a concentration above that allowed by the FDA and 200% above the amount on the feed label. The feed was sampled at the border, and the driver was ordered to warehouse the feed pending further testing from the FDA. Contrary to orders from U.S. officials, Bolduc instructed the driver to deliver the feed to the Vermont farmer as planned, without informing the farmer that the feed had been sampled and ordered held by the FDA. The driver did deliver the medicated feed to the customer, and the Vermont cows consumed the contaminated feed.

Bolduc thereafter engineered a plan that a sham shipment of similar-looking cattle feed cross the border under false Customs documentation to be stored on an unrelated piece of land in Vermont until requested for redelivery by Customs and Border Protection. Upon Customs’ request, Bolduc ordered that the sham shipment be presented for redelivery, accompanied by the fictitious documentation, offering up the sham shipment feed to the U.S. government as the held tainted feed that was in fact already consumed by Vermont cows.

According to court documents, the parties have agreed that the appropriate sentence is a fine of $80,000, and a term of probation of one year. The actual sentence will be determined with reference to federal sentencing guidelines.

Meunerie Sawyerville is represented by Attorney Bud Allen. The prosecutor is Assistant U.S. Attorney Abigail Averbach.

The United States Attorney for the District of Vermont announced that Catherine McKinney, 61, of Hartland, pleaded not guilty today in United States District Court in Burlington to federal fraud charges. U.S. Magistrate Judge John M. Conroy released McKinney on conditions pending trial, which has not been scheduled. According to court records, on June 17, 2015, a federal grand jury in Rutland returned a three-count indictment charging McKinney with mail and wire fraud and interstate transportation of stolen money. The indictment alleges that, beginning no later than 2008 and continuing until early 2015, McKinney embezzled at least $690,000 from her employer, Myers Associates PLLC, a law firm in Lebanon which represents clients in both Vermont and New Hampshire. According to the indictment, McKinney wrote law firm checks to herself and to her creditors on which she forged the signature of her attorney employer. She deposited more than $90,000 in forged checks into her Vermont bank account. McKinney allegedly also caused electronic transfers of firm funds to pay her obligations, including large credit card bills. The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until she is proven guilty. If convicted, McKinney faces up to 20 years of imprisonment and a fine of more than $1,000,000. The actual sentence would be determined with reference to federal sentencing guidelines. This case was investigated by the United States Secret Service.

The Office of the United States Attorney for the District of Vermont announces that Eric S. Miller was sworn in as United States Attorney on Tuesday, June 30, 2015, by Chief U.S. District Court Judge Christina Reiss.

Miller has worked since 1999 in the Burlington office of the law firm of Sheehey Furlong & Behm PC, serving as partner since 2002. He has litigated a range of complex issues in federal civil and criminal cases, including trials and appeals. As an appointee to the Criminal Justice Act panel of the United States District Court, Miller has also represented indigent defendants in serious felony cases involving narcotics, weapons, and immigration-related charges. Miller clerked for the Honorable Fred Parker on the U.S. Court of Appeals for the Second Circuit in Burlington and is a graduate of Yale Law School and Duke University.

During the ceremony, Governor Peter Shumlin remarked on Miller as an extraordinary attorney. Senator Patrick Leahy noted the number of phone calls he had received in support of Miller’s nomination.

Following the ceremony, Miller stated, “the United States Attorney's Office plays a crucial role in keeping our communities safe and protecting the rights of all Vermonters. I am honored to be asked to lead the office and humbled by the responsibilities of the position. My predecessors, Tris Coffin and Geni Cowles, have set a high bar, and I look forward to serving with the team they have built."

The United States Attorney’s Office for the District of Vermont stated that Chief Judge Christina Reiss, of the United States District Court, sentenced Troy Gibbs, 52, of Rutland, Vermont to 18 months imprisonment for making his residence available to several out-of-state drug dealers. In addition, Judge Reiss sentenced Gibbs to three years supervised release, to be served after he completes his jail sentence.

Gibbs had previously pled guilty to the federal crime of making a residence available for the purpose of distributing or storing controlled substances, also called the “crack-house law.” This crime carries a maximum sentence of twenty years imprisonment to be followed by up to three years supervised release.

According to the Government, Gibbs and his girlfriend lived in an apartment at 43 Summer Street in Rutland in late 2013 through early 2014. At that time Gibbs and his girlfriend allowed several out-of-state drug dealers from Brooklyn, New York to stay at their residence in exchange for crack cocaine. These dealers then distributed their drugs in the Rutland area while staying at the residence. Gibbs knew these drug dealers by the names: “Dar,” Trav,” “Cash,” “Bolo,” and “Lisa.” Four of these drug dealers, who all are from Brooklyn, New York, have been charged (See United States v. Darnell Richardson, (a.k.a. “Dar”), United States v. Cashon Smith (a.k.a. “Cash), United States v. Tiquan Woods (a.k.a. “Trav”), and United States v. Tyquaisha Adams (a.k.a. “Ty” or “Lisa”)).

The United States stated in its sentencing memorandum that Gibbs was “part of the the local human infrastructure of the Rutland drug world which provides shelter and drug storage to these dealers, thereby decreasing the risk of detection and interdiction by law enforcement and rendering their drug trafficking more likely to succeed.” The Government also argued that it was important that the sentence send a message to others in the drug community that the consequences for housing drug dealers is likely to be significant prison sentence. In imposing an 18 month sentence Judge Reiss stated that “if you provide drug dealers with access to your apartment, expect consequences for yourself.” Judge Reiss further stated that these narcotics are “destroying people’s lives” and that Gibbs conduct was “egregious even if it was motivated by [his] addiction and it is not excused.”

The United States is represented in this matter by Joseph Perella and the defendant is represented by Brooks McArthur. This matter was investigated by the Vermont State Police Drug Task Force, the Federal Bureau of Investigation, and the Drug Enforcement Administration.

The United States Attorney for the District of Vermont announced that Peter Foy, 61, of Alburg, pleaded guilty today in United States District Court in Burlington to a charge that he concealed assets in his bankruptcy case. U.S. District Judge William K. Sessions III released Foy on conditions pending sentencing, which is set for October 13.

On June 9, 2015, the United States filed a one-count information charging Foy with bankruptcy fraud. According to the charging document, in November 2014, Foy filed a chapter 7 bankruptcy petition in the United States Bankruptcy Court for the District of Vermont. The petition sought to discharge all of Foy's unsecured debts. In his petition and accompanying schedules, which Foy swore were complete and accurate, Foy was required to disclose all his assets and liabilities, including any real estate he owned. Foy did disclose the home he owned in Vermont, but not a second house he owned in Quebec, Canada. Foy had acquired sole title to that five-bedroom lakefront property in 2007. Before filing for bankruptcy, Foy had listed the Quebec house for sale at a price of nearly $340,000 (Canadian). Foy also failed to disclose to the Bankruptcy Court that the Canadian property had reportedly generated rental income of $22,500 in 2013 and $20,300 in 2014.

Foy faces up to five years of imprisonment and a fine of up to $250,000. His actual sentence will be determined with reference to federal sentencing guidelines.

This case was investigated by the Federal Bureau of Investigation.

Foy is represented by Norman Blais. The prosecutor is Assistant U.S. Attorney Gregory Waples.

The Office of the United States Attorney for the District of Vermont stated that Amy C. Fletcher, age 44, of Derby Line, Vermont, pleaded guilty yesterday in federal court in Brattleboro to committing wire fraud and filing a false tax return.

Fletcher admitted in court that while working for Derby Line Ambulance (“DLA”) during 2009-2012, she embezzled money from the company to pay personal expenses.  She also admitted filing a false 2011 tax return with the Internal Revenue Service.

Fletcher admitted engaging “in an ongoing practice of diverting funds from DLA for personal use, paying personal credit cards and home and car loans.”  She admitted drawing over 400 checks on DLA’s business accounts, making them payable to herself and others for her benefit.  She admitted that such transfers paid down outstanding balances on her 14 credit cards.  The government stated at the change of plea hearing that, during the time period in question, DLA had business receipts of over $1.5 million, out of which Fletcher diverted over $250,000.   Fletcher’s counsel responded that the total amount of stolen funds might be contested at sentencing.

   Fletcher also admitted filing a false IRS 1040 tax return in 2011, understating her income and her taxes due.  Her filing was accompanied by a written declaration that it was accurate, while she knew it was false.

U.S. District Court Judge J. Garvan Murtha ordered a presentence investigation, and scheduled a sentencing hearing on December 17, 2015.

The case was investigated by the Federal Bureau of Investigation, and the Internal Revenue Service, Criminal Investigation Division.  The maximum possible penalty for the two offenses is 20 years in prison for the wire fraud, and three years for the false tax filing. Fletcher is represented by attorney David Sleigh of St. Johnsbury.  The United States is represented by Assistant U.S. Attorney William Darrow.

The Office of the United States Attorney for the District of Vermont stated that Thomas Parker of Brooklyn, New York was sentenced today to 39 months in prison.  Chief Judge Christina Reiss also ordered Parker to serve a three-year period of supervised release following his term of imprisonment.  Parker also agreed to the forfeiture of $2,495 as proceeds of drug distribution.  On February 3, 2015, Parker pled guilty to conspiracy to distribute heroin and cocaine base and conspiracy to possess firearms in furtherance of a drug trafficking crime.  On May 28, 2015, Chief Judge Reiss sentenced Tyshawn Mack of Brooklyn, New York to 10 years in prison to be followed by four years of supervised release.  Mack had earlier pled guilty to conspiracy to distribute at least 28 grams of cocaine base and 100 grams of heroin.

According to court records, from approximately November 2013 until January 2014, Mack and Parker were involved in the distribution of significant quantities of heroin and cocaine base in the Burlington and Winooski areas.  Investigation revealed that drug users were stealing property from area residences to trade for drugs from Mack and Parker.  Mack and Parker also traded drugs for firearms and regularly carried firearms in the course of drug dealing.  This drug and firearm conspiracy ended on January 24, 2014 when law enforcement arrested Mack, Parker, and other local associates.  On that day, a search warrant was executed at a residence on Hickock Street in Burlington where Parker and Mack were known to deal drugs.  The residence was rented by Guillaume Etienne, who allowed Mack and Parker to use the apartment to deal drugs.  Etienne was federally convicted for his role in this case.  Law enforcement seized five firearms and approximately $33,495 in cash from the Hickock Street residence.  Simultaneous to the execution of the search warrant on Hickock Street, law enforcement conducted a traffic stop of a truck in which Mack and Evan Blum were riding.  The truck had just left the Hickock Street residence and was traveling to the residence of Deirdre Hey, who herself was selling drugs for Mack and Parker.  Hey was also federally convicted for her role in this conspiracy.  During the course of the traffic stop, Mack got into the driver’s seat of the truck and sped off at high speed through the streets of downtown Winooski.  Mack struck several parked cars and eventually came to a stop, after which he fled on foot.  Law enforcement apprehended Mack a short time later.  A search of Mack incident to his arrest revealed a large amount of cash.  A search of the truck yielded two loaded handguns, approximately 100 grams of heroin, 41 grams of ecstasy, 36 grams of cocaine base, and a quantity of marijuana.  Blum was also federally convicted for his role in the drug conspiracy.

As a result of these prosecutions, three firearms were forfeited to the United States and three firearms were returned to their lawful owner.  The cash seized from the Hickock Street residence was also forfeited.

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Vermont State Police, the Winooski Police Department, and the Burlington Police Department.  The government was represented by Assistant U.S. Attorneys Nancy Creswell and Kevin J. Doyle.  Mack was represented by Mark A. Kaplan, Esq. of Kaplan and Kaplan in Burlington.  Michael J. Straub, Esq. of Burlington represented Parker.        

      The Office of the United States Attorney for the District of Vermont announced that Paul Hendler, 43, of Taftsville, was sentenced today in United States District Court in Brattleboro to 27 months of imprisonment following his guilty plea to federal fraud charges.  United States District Court Judge J. Garvan Murtha ordered that Hendler serve three years of supervised release following completion of his prison term and pay restitution in the amount of $550,000.  The court ordered Hendler to surrender to the Bureau of Prisons on July 7 to begin serving his sentence. 

      In January 2012, a federal grand jury in Rutland returned a 14-count superseding indictment charging Hendler with mail and wire fraud, interstate transportation of stolen money, forgery and engaging in monetary transactions involving more than $10,000 of criminally derived property.  The indictment alleged that, between 2005 and 2010, Hendler schemed to defraud two Vermont businesses he helped found, as well as a New York doctor whom he solicited to invest in one of the companies.  According to the indictment, in the early 2000s, Hendler founded JavaPop, Inc, a Woodstock company that manufactured carbonated coffee-based drinks.  The indictment accused Hendler of defrauding JavaPop of more than $150,000 by misappropriating for his own benefit, in 2007, a $99,000 company line of credit at Bank of America.  It also charged him with making off with $56,000 in JavaPop funds that Hendler received in 2008 after selling four company vehicles. 

      Another part of the indictment alleged that Hendler defrauded a New York City doctor by inducing him to make a $140,000 investment in JavaPop under false pretenses in 2005.  According to the indictment, Hendler never turned the money over to JavaPop but instead used it for himself. $56,000 of the doctor’s money was used to make a downpayment on a house Hendler purchased in Woodstock.   

      The indictment also charged Hendler with defrauding Green Mountain Digital of Woodstock, another business Hendler helped found in 2007-08.  According to the indictment, Hendler submitted falsified and fraudulent documentation to Green Mountain Digital which caused the company to reimburse him for expenses he did not actually incur.  It also charged him with making off with $25,000 paid over to him by another business partner, and embezzling $33,000 from the Blueberry Hill Inn in Goshen by forging the signature of the Inn's owner on a series of checks Hendler issued to himself. 

      As part of the sentence, the court ordered Hendler to pay full restitution to the victims named in the indictment, as well as to the victims of several other frauds Hendler committed after the superseding indictment was returned.     

      This case was investigated by the Internal Revenue Service and the Woodstock Police Department.

              Hendler is represented by Brad Stetler.  The prosecutor is Assistant
U.S. Attorney Gregory Waples.

The Office of the United States Attorney for the District of Vermont stated that Erik Weinmann, 31, of Newport, Vermont was sentenced today to 21 months in prison for robbing a Merchants Bank in Colchester, Vermont in July 2014.  U.S. District Judge William K. Sessions III also ordered that Weinmann receive a two-year period of supervised release following the term of imprisonment.  The Court ordered Weinmann to surrender to serve his sentence on June 23, 2015.

According to court records, on July 25, 2014, Weinmann entered the Merchants Bank on Bessette Drive in Colchester and gave a demand note to a bank teller.  The note indicated that the robber had a gun and demanded money.  The bank teller gave Weinmann $4,770 in cash and he left the bank.  The Colchester Police Department apprehended Weinmann minutes later at the nearby Visiting Nurse Association.  At the time of his arrest, Weinmann was in possession of the cash and a toy gun.  Upon his arrest, Weinmann admitted to robbing the bank.

This matter was investigated by the Federal Bureau of Investigation and the Colchester Police Department.  The government was represented by Assistant U.S. Attorney Kevin J. Doyle.  Weinmann was represented by Michael L. Desautels, Esq., the Federal Defender for the District of Vermont. 

            The Office of the United States Attorney for the District of Vermont stated that, on May 18, 2015, Daniel Ayala, 24, of Burlington, Vermont, was sentenced to 46 months in federal prison after his guilty plea to charges that he conspired to distribute heroin, cocaine base, and marijuana, and conspired to possess firearms in furtherance of a drug trafficking crime.   U.S. District Court Judge William K. Sessions III also ordered that Ayala serve three years of supervised release following his prison term. 

            According to court records, Ayala sold drugs in the Burlington area from approximately April 2012 until his arrest on August 4, 2014.  When he was arrested on August 4, 2014, Ayala was using his apartment on Spruce Street in Burlington as a base for drug dealing.  When law enforcement searched that apartment, they found cocaine packaged for sale, a loaded semi-automatic handgun, and digital scales, among other evidence.  At the time of the search, Ayala shared the apartment with his girlfriend and the couple’s young daughter.

            For his crimes, Ayala faced a statutory maximum term of 20 years in prison on each count.  The United States Sentencing Guidelines, which are advisory, recommended that Ayala receive a prison term between 57 and 71 months.  In determining that a more lenient sentence was appropriate in this case, Judge Sessions considered Ayala’s difficult childhood and his lack of a serious criminal record, among other factors.

            Acting United States Attorney Eugenia A.P. Cowles commended the efforts of the Bureau of Alcohol Tobacco Firearms and Explosives, the Vermont Drug Task Force, the Burlington Police Department, and the South Burlington Police Department for their coordinated efforts in this investigation.

            The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr.  Ayala is represented by Steven Barth of the Federal Public Defender’s Office. 

The Office of the United States Attorney for the District of Vermont stated that William Stanley, 53, of Vermont, was arraigned today on a two count indictment alleging that in August of 2013, he mailed a letter containing threats to kill a deputy state’s attorney and to destroy the Bennington County Courthouse by fire or explosives.

According to court records and proceedings, Stanley is currently serving a 25 year to life sentence on a Vermont state conviction. He entered a not guilty plea to the pending federal charges before the Hon. John M. Conroy, United States Magistrate Judge, and was ordered detained in federal custody until the conclusion of proceedings in this case. 

If convicted, Stanley faces up to five years in prison for the threat to the deputy state’s attorney and up to ten years in prison for the threat to destroy the courthouse. An indictment is merely an allegation and Stanley remains innocent until proven guilty.

Acting United States Attorney Eugenia A.P. Cowles commended the efforts of the Federal Bureau of Investigation and the Vermont State Police in investigating this matter. “The federal government takes any threat against state prosecutors and the state judiciary extremely seriously,” Cowles stated.

Stanley is represented by Assistant Federal Public Defender Elizabeth Quinn. 

The Office of the United States Attorney for the District of Vermont stated that Dasean Nisbett, 24, of Bronx, New York was sentenced today to time served and three years of supervised release based on his arrest for possession with intent to distribute Oxycodone pills.  U.S. District Judge William K. Sessions III also ordered that Nisbett submit to a period of home detention and location monitoring, as well as complete 100 hours of community service.

According to court records, on March 3, 2013, Nisbett arrived in Burlington after midnight on the Megabus from New York City.  After a police canine alerted on the area of the bus where Nisbett had been sitting, University of Vermont Police approached Nisbett as he walked down Main Street.  Nisbett denied having anything illegal in his possession and permitted law enforcement to search his person.  A subsequent search revealed a bag of 1,000 oxycodone pills concealed in Nisbett’s underwear.  Nisbett was subsequently indicted federally for possession with intent to distribute oxycodone.

This matter was investigated by the U.S. Drug Enforcement Administration and the University of Vermont Police Department.  The government was represented by Assistant U.S. Attorney Kevin Doyle.  Dasean Nisbett was represented by Michael L. Desautels, the Federal Defender for the District of Vermont.

The Office of the United States Attorney for the District of Vermont stated that it filed charges today against Amy C. Fletcher, of Derby Line, Vermont, alleging fraud and a false tax filing.  According to the charge, while working for Derby Line Ambulance during 2009-2012, Fletcher diverted money from the company to pay personal expenses, and also filed a false personal tax return in 2011. 

The charge alleges that Fletcher “engaged in an ongoing practice of diverting funds from DLA for personal use, paying personal credit cards and home and car loans.”  The charge further alleges that over 400 checks were drawn on DLA’s business accounts “made payable to Amy C. Fletcher and others for her benefit.  Many of the transfers paid down outstanding balances on 14 credit cards maintained by Fletcher.  Such illicit transfers totaled over $250,000.”  According to the separate tax charge, Fletcher “willfully made and subscribed a 2011 U.S. Individual Income Tax Return (Form 1040), which was verified by a written declaration,” which understated her actual income and was false.

Also filed today is a Plea Agreement under which Fletcher agrees to plead guilty to both charges.  A plea hearing has yet to be scheduled.

The case was investigated by the Federal Bureau of Investigation, and the Internal Revenue Service, Criminal Investigation Division.  The maximum possible penalty for the two offenses is 20 years in prison. Fletcher is represented by attorney David Sleigh of St. Johnsbury.  The United States is represented by Assistant U.S. Attorney William Darrow. 

The Office of the United States Attorney for the District of Vermont stated that Deirdre Hey, 48, of Winooski, Vermont was sentenced today for conspiracy to distribute heroin and crack cocaine, and maintenance of a residence for the distribution of controlled substances.  Chief U.S. District Judge Christina Reiss sentenced Hey to 33 months’ imprisonment to be followed by a three year term of supervised release.

According to court records, Hey participated in the distribution of crack cocaine and heroin in the Burlington area from December 2013 to January 2014.  During this timeframe, she and others used her home on LaFountain Street in Winooski for the packaging and distribution of heroin and cocaine base.  Also according to court records, Hey acquired firearms in exchange for drugs and facilitated the transfer of firearms to others.  Hey was arrested on May 9, 2014 and has been detained since that time. 

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Vermont State Police, and the Winooski Police Department.  The government was represented by Assistant U.S. Attorneys Nancy Creswell and Kevin Doyle.  Deirdre Hey was represented by Frank J. Twarog, Esq.   

The Office of the United States Attorney for the District of Vermont stated that Steven D. Griffin, 59, of Berlin, New Hampshire, was charged in a nine-count indictment with making false statements to a financial institution in violation of 18 U.S.C. § 1014.  Griffin appeared before Chief U.S. District Judge Christina Reiss in Burlington on April 6, 2015 and pled not guilty to the charges.  He was released on conditions pending trial.

            Griffin was part owner and Chief Financial Officer of Isaacson Structural Steel, Inc. (ISSI), which before its bankruptcy was one of the largest businesses in the North Country of New Hampshire. 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.

            The indictment charges that, between 2007 and 2011, Griffin submitted inflated figures for assets of ISSI to Passumpsic Saving Bank, and other banks participating in loans to the company that totaled over $12 million, including a $2 million loan guaranteed by the Small Business Administration in late 2010. In April 2011, the banks learned about issues with ISSI’s asset 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.

            Passumpsic Savings Bank is headquartered in the District of Vermont.

            On February 13, 2014, Arnold Hanson, ISSI’s former Chief Executive Officer, who shared ownership of ISSI with Griffin, pled guilty to conspiring to make false statements to a financial institution.  Hanson is scheduled to be sentenced on May 27, 2015.

            If convicted, Griffin faces a maximum of 30 years in prison and a $1 million fine on each count.  His actual sentence, in the event of conviction, would be determined by the court with reference to the advisory federal sentencing guidelines.  Acting United States Attorney Cowles stated that the indictment is an accusation only and that Griffin is presumed to be innocent unless and until proven guilty.

            The United States is represented in this matter by Assistant U.S. Attorneys Paul J. Van de Graaf and Timothy C. Doherty, Jr.  Griffin is represented by Paul S. Volk of the Burlington law firm, Blodgett, Watts & Volk. 

            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 United States Attorney’s Office announced today that it had filed a forfeiture lawsuit against the real property at 114, 116 and 117 Park Avenue in Rutland Vermont. The suit was brought pursuant to 21 U.S.C. § 881(a)(7), which provides that property which is used to commit or to facilitate the commission of felony drug offenses can be forfeited to the Government. Each property contains a house containing at least two apartments. The houses appear to have been built as single family homes but have been split up over time.

The complaint and the accompanying affidavit of FBI agent Christopher Destito 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. One of the properties was searched twice. The documents also show that law enforcement made six controlled buys from dealers in the apartments and have arrested several persons who had been living there. At least four former tenants are now under indictment or have been convicted already in federal court and others have been charged in state court. These include Eric Dixon, now serving 87 months in federal prison; Earnest Murray, now serving 60 months in federal prison; Andrew Harris, now serving 60 months in federal prison; and Terrance Chenault, now serving 87 months in federal prison.    

The court documents show that a drug dealer paid multiple bags of heroin as a security deposit to a former property manager for 114 Park Avenue when he moved in. The documents further show that the current property manager has a lengthy criminal history and that her daughters lived in several of the apartments with known drug dealers.

The affidavit of probable cause states that the property is owned by a New York corporation whose principals are Bernard and Ruth Jeifa, whose principal place of business is in the Town of Franklin Square, on Long Island, in New York State. The documents show that Bernard Jeifa regularly collected rent from tenants and met tenants with his property manager. They also show that he paid to repair doors to an apartment after law enforcement had to knock them down to execute a search warrant but said nothing to the tenant. The court filings further show that when a non-dealing tenant complained of the drug dealing by other tenants, Jeifa instructed her to call the police or call the property manager.  The documents also show that local residents sent a letter to Bernard Jeifa to inform him of the drug dealing but that the drug dealing continued.

The forfeiture proceedings against the Park Avenue properties plus the recent forfeiture action against 24 Cottage Street, as well as a series of criminal prosecutions, are part of an on-going effort by the U.S. Attorney’s Office in conjunction with federal, state and local law enforcement agencies to address drug activity in Rutland. During the past year, the U.S. Attorney’s Office has charged approximately thirty individuals federally who have facilitated the drug trade in Rutland, Vermont.

The charged individuals have included out-of-state dealers responsible for bringing significant quantities of heroin and crack cocaine to Rutland; local residents who provided housing, transportation, and local distribution networks to these out-of-state dealers; and couriers who moved the drugs between other states (most frequently New York) and Vermont. 

The United States Attorney’s Office’s efforts to combat drug trafficking in Rutland have been supported by the work of the Vermont State Police Drug Task Force, the Drug Enforcement Agency, the Federal Bureau of Investigation, and the Rutland Police Department. The United States Marshals Service will play a key role in the forfeiture of the Park Avenue properties.  AUSA James Gelber is responsible for the property forfeitures.

            The Office of the United States Attorney for the District of Vermont stated that, on March 30, 2015, Jeffrey Devoid, 53, of Winooski, Vermont, was sentenced to three additional years of federal supervised release after Devoid admitted that he had violated the conditions of his federal supervised release by committing fraud.  U.S. District Court Judge William K. Sessions III, sitting in Burlington, also ordered that Devoid pay his victims restitution in the amount of $13,600 and perform 120 hours of community service. 
           
            According to court records, in 2003 Devoid pled guilty to failure to pay child support–a federal misdemeanor–in the United States District Court for the Central District of California.  For that offense, he was sentenced to 5 years of probation.  In 2007, after he moved from California to Vermont, responsibility for supervising Devoid was transferred to the U.S. Probation Office in the District of Vermont. 

            On August 28, 2008, a federal grand jury in Vermont returned an indictment charging Devoid with multiple counts of wire fraud.  Devoid pled guilty and on November 2, 2009, Judge Sessions sentenced Devoid to 27 months in prison, followed by three years of federal supervised release.  In that case, Devoid defrauded a number of New England printing companies where he had been employed as a salesman.  Judge Sessions ordered him to pay his victims $207,838 in restitution.  Judge Sessions also ordered that Devoid pay the remaining $53,113 he owed in unpaid child support.

            According to court records, while serving the three-year term of supervised release imposed for his 2009 wire fraud conviction, Devoid continued to engage in fraudulent activity in Vermont.   Beginning in approximately December of 2011, Devoid would meet women via internet dating websites, court them romantically, and falsely claim that he was a wealthy businessman who had sold a successful printing company in California.  On the basis of this false information, Devoid induced his victims to lend him money and then failed to pay them back.

            As Devoid admitted, this fraudulent conduct violated the terms of his federal supervised release, which prohibited him from violating federal, state and local law.

            Acting United States Attorney Cowles commended the efforts of the Federal Bureau of Investigation on this matter.   The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr.  Devoid is represented by William R. Norful of the Norful Law Office in Winooski, Vermont. 

            The Office of the United States Attorney for the District of Vermont stated that, on April 10, 2015, Lee Jay Manning, 28, of Barre, Vermont, was sentenced to 76 months in federal prison after his guilty plea to charges that he used a handgun to rob a Cumberland Farms convenience store in Barre on February 12, 2014.  Chief U.S. District Court Judge Christina Reiss also ordered that Manning serve three years of supervised release following his prison term. 

            According to court records, Manning robbed the Cumberland Farms convenience store in Barre on the evening of February 12, 2014 with a loaded semi-automatic handgun.  He was apprehended by law enforcement, in possession of the handgun, shortly after the robbery.  No one was injured during the incident.

            For his crimes, Manning faced a mandatory minimum term of 60 months in prison and a maximum term of life.  The United States Sentencing Guidelines, which are advisory, recommended that Manning receive a prison term between 90 and 97 months.  In determining that a 76-month sentence was appropriate in this case, Judge Reiss considered the seriousness of the offense, Manning’s history of substance abuse, and his recent efforts at rehabilitation, among other factors.

            Acting United States Attorney Cowles commended the efforts of the Bureau of Alcohol Tobacco Firearms and Explosives, the Barre City Police Department, the Barre Town Police Department, the Berlin Police Department, and the Vermont State Police for their investigation into this matter.

            The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr.  Manning is represented by defense attorney Natasha Sen. 

The Office of the United States Attorney for the District of Vermont stated that Chris Ross, 51, of New York City, and Kimberly Kuncz, 45, of Montpelier were arraigned today before United States Magistrate Judge John M. Conroy in connection with an Indictment returned by the Federal Grand Jury charging Ross and Kuncz with conspiracy to distribute heroin.

According to Court papers, Ross and Kuncz were arrested during the evening of March 19, 2015, after members of the Vermont Drug Task Force, working in cooperation with the Montpelier Police Department and Vermont State Police, observed Kuncz meet Ross as he arrived in Montpelier by train.  Court papers indicate that law enforcement was aware that Kuncz was involved in heroin distribution and that she expected to be resupplied that evening.  During a search of Ross, Vermont State Police discovered within his pants approximately 1700 individual dosage unit bags of a substance that tested positive for heroin.  Ross denied knowledge of the items found within his pants.

At their arraignment, both Kuncz and Ross entered pleas of not guilty.  The Indictment is an accusation only, and Kuncz and Ross are presumed innocent unless and until they are proven guilty beyond a reasonable doubt.  If convicted, Kuncz and Ross face a maximum possible penalty of 20 years in prison and a fine up to $1,000,000. 

Following the arraignment, Kuncz was ordered released but remains subject to supervision by the United States Probation Office.  Ross remains in the custody of the United States Marshals Service. 

This matter is being investigated by the Vermont Drug Task force, working in cooperation with the Montpelier Police Department.  The case is being prosecuted by Assistant United States Attorney Michael Drescher.  Ross is represented by Steven Barth, Esq.  Kuncz is represented by Doug Kallen, Esq.

Eugenia A.P. Cowles, the Acting United States Attorney for the District of Vermont, stated that Kyle Tetreault, 24, of Vergennes, Vermont, was sentenced today by United States District Court Judge William K. Sessions III, to 38 months in prison for being a felon in possession of firearms.  Tetreault was also sentenced to 3 years of supervised release following his release from prison.

          According to Court records, Tetreault committed a number of residential burglaries in Vermont during which he stole firearms and other items.  Subsequently, Tetreault traded some of the stolen firearms to an out-of-state drug dealer in exchange for heroin. Tetreault had previously been convicted in Vermont state court of a felony offense for which the sentence was punishable by more than one year in prison.  Thus, he was prohibited from possessing firearms at the time of the conduct at issue in the case.                                                                           

          Tetreault was indicted by a federal grand jury on March 20, 2014.  He pled guilty to being a felon in possession of a firearm on August 18, 2014, and has been detained in prison since November 17, 2014.

            This case was investigated by the Vermont State Police and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”).  The Acting United States Attorney, Eugenia A. P. Cowles, commends those agencies for their work.  The case was prosecuted by Assistant United States Attorney Nancy J. Creswell.  The defendant was represented by Attorney Michael Desautels of the Office of the Federal Public Defender.

The Office of the United States Attorney for the District of Vermont has stated that Roy “Opie” McAllister II, 39, of Montgomery, Vermont has been sentenced to prison for his role in a cross-border marijuana trafficking conspiracy.   In September 2014, McAllister was convicted of two counts of tax filing false tax returns following a jury trial.  The jury was unable to reach a verdict on the marijuana conspiracy charge and the Court declared a mistrial.  A retrial was scheduled for December 2014.  On November 24, 2014, before the retrial against McAllister on marijuana trafficking charges, McAllister pleaded guilty to conspiracy to distribute marijuana.  McAllister has been ordered to serve 30 months in jail on each count of conviction, with the time periods to run concurrently.  McAllister has also been ordered to pay a $25,000 fine and to serve three years of supervised release following his jail sentence.  As a condition of his supervised release, McAllister has been ordered to file corrected tax returns and pay taxes owed to the Internal Revenue Service.  McAllister will begin serving his jail sentence in April 2015.

McAllister, and his co-conspirator, Jeffrey Donna, have been described as kingpins in a marijuana trafficking business that began in the mid-2000s and continued until the two were arrested on May 29, 2013.  The two defendants were responsible for bringing bulk quantities of marijuana across the Canadian border into northern Vermont for several years.  According to the evidence of record, McAllister was responsible for between 1,000 and 3,000 kilograms of marijuana as part of the conspiracy.  The marijuana trafficking has been characterized as a for-profit enterprise, in which McAllister made lavish expenditures using drug proceeds. 

McAllister has been ordered to forfeit a home heating oil delivery truck used by McAllister Fuels, 115 Troy Street, Montgomery, Vermont, which the government alleged was bought with McAllister’s drug proceeds.  He has also been ordered to forfeit more than 30 guns, two Harley Davidson motorcycles, a Polaris ATV, a Chevy Tahoe, a Ford F-150 Harley Davidson edition pick-up truck, a GMC Yukon and expensive jewelry purchased during the time of the conspiracy.  A forfeiture action against his residence of 2404 Regan Road, Montgomery, Vermont, is pending. 

As part of the marijuana trafficking conspiracy, McAllister and Donna were assisted by Jesse Soule, 48, also of Montgomery, Vermont.  Soule was convicted in January 2014 of his role in the marijuana trafficking conspiracy.  According to court records, Soule participated in the conspiracy by storing bulk marijuana on his farm.  Soule is currently in jail serving a 13 month sentence.  He has forfeited $250,000 in drug proceeds to the government and a Polaris ATV. 
Kirt Westcom, 48, of Fairfield, Vermont, also has been convicted of conspiracy to distribute marijuana.  He received bulk marijuana from Donna and McAllister at his farm on 262 Egypt Road, Fairfield, Vermont for several years.  Westcom is currently in jail serving a 24 month sentence.  Westcom has forfeited $135,000 to the government, as well as a Harley Davidson motorcycle, and a Ford F-350 pick-up truck.

Seven other individuals have pleaded guilty to federal crimes arising out of this drug enforcement action in Franklin County, Vermont.  They are Jeffrey Baisley, 32, of Richford, Vermont, Jeffrey Tatro, Jr., 28, of Richford, Vermont, Robert Patterson, 55, of Richford, Vermont, Jonathan Palermo, 29, of Essex, Vermont, and Benjamin Pratt, 32, of Colchester, Vermont, who all have been convicted of conspiracy to distribute marijuana.  Eric Jette, 32, of Enosburg, Vermont and Johnthan Aldrich, 34, of Richford, Vermont also have been convicted of federal drug charges.

The United States Attorney’s Office would like to thank the United States Border Patrol, the Franklin County Sheriff’s Office, and the Drug Enforcement Administration for their work in conducting this investigation.  This investigation was also assisted by the United States Internal Revenue Service and the Bureau of Alcohol, Tobacco and Firearms. 

The United States was represented by Assistant U.S. Attorney Heather Ross.  Roy McAllister II was represented by Peter Langrock, Langrock Sperry & Wool. 

Eugenia A.P. Cowles, the Acting United States Attorney for the District of Vermont, stated that Scott Taylor, 21, of Milton, Vermont, was sentenced on March 25, 2015 by United States District Court Judge William K. Sessions III, to 48 months in prison for being in possession of stolen firearms.  Taylor was also sentenced to 3 years of supervised release following his release from prison.

          According to Court records, Taylor committed a number of residential burglaries in Vermont during which he stole firearms and other items.  Subsequently, Taylor traded some of the stolen firearms to an out-of-state drug dealer in exchange for heroin.                                                                                                                   

          Taylor was indicted by a federal grand jury on March 20, 2014.  He pled guilty to possessing stolen firearms on August 18, 2014.  He has been detained in prison since October 7, 2014.

            This case was investigated by the Vermont State Police and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”).  The United States Attorney, Eugenia A. P. Cowles, commends those agencies for their work.  The case was prosecuted by Assistant United States Attorney Nancy J. Creswell.  The defendant was represented by Attorney Michael Desautels of the Office of the Federal Public Defender.

The Office of the United States Attorney for the District of Vermont stated that Albert Torres Morales, 30, of Richford, Vermont was sentenced today to 84 months imprisonment on charges that he carried a firearm in relation to a drug trafficking crime, and conspired to distribute heroin, cocaine base, and cocaine.  Chief Judge Christina Reiss also ordered that Torres Morales serve a three-year period of supervised release following his term of imprisonment.

According to court records, the Vermont Drug Task Force conducted more than ten controlled purchases of heroin, cocaine base, and cocaine from Torres Morales in and around Richford between January and April 2014.  According to sources cooperating with law enforcement, Torres Morales regularly possessed a firearm in connection with his drug dealing activity.  During a controlled purchase of heroin on March 24, 2014, law enforcement captured audio and video footage of Torres Morales in possession of a handgun while he conducted a heroin transaction.

In the overnight hours of April 19, 2014, Larry Garrow, Jr. of Richford burglarized Rite-Way Sports in Hardwick of 32 handguns.  Jaime Hoben then drove with Garrow to Richford, where Garrow traded some 20 of the handguns to Torres Morales for heroin and money.  The firearms consisted of .380 and 9mm handguns.  Those firearms have not been recovered.  The remaining handguns were recovered when Larry Garrow, Sr. found a bag of guns in the bedroom of his son, Larry Garrow, Jr., and turned them in to the Vermont State Police.

On April 22, 2014, law enforcement executed a search warrant at Torres-Morales’s residence, the location of numerous controlled purchases of narcotics from Torres-Morales.  Among other items, agents recovered a drug ledger and a safe containing $6,000 in cash.  Torres-Morales was arrested the same day with heroin and over $1,000 in cash.

Also in connection with this case, Hoben was sentenced to six months imprisonment and three years of supervised release on a charge of possession of stolen firearms.  On March 2, 2015, Garrow was sentenced to 30 months imprisonment and three years of supervised release after his conviction for possession of stolen firearms.  As part of his plea agreement with the government, Garrow stipulated that he stole the firearms from Rite-Way Sports.            

Eugenia A.P. Cowles, the Acting United States Attorney for the District of Vermont, stated that Tammy Nguyen, 35, of Naples, Florida (formerly of Essex Junction, Vermont), was sentenced today by Chief United States District Court Judge Christina Reiss, to one year of probation, restitution of approximately $41,000.00, and a fine of $10,000.00. 

          According to Court records, Tammy Nguyen, then employed by the Social Security Administration in Burlington, Vermont, submitted applications for health insurance coverage to the Vermont’s Vermont Health Access Program (VHAP), a program designed for low income Vermonters.  Over the course of several years, she submitted applications including false statements regarding her income, child care costs, and other items.  Nguyen also drafted and submitted, on Social Security Administration letterhead, a fraudulent letter to VHAP, stating that her income was less than her actual income. As a result, Nguyen paid far less than market rates for health care coverage through VHAP. 
Nguyen also made private loans to members of the local Vietnamese community at exorbitant interest rates and did not report the interest income to the Internal Revenue Service (IRS).  She submitted false tax returns to the IRS.  Further, Nguyen concealed from the Burlington Housing Authority, the fact that her domestic partner, Tam Lai, was living with her at Hillside Terrace, in Burlington, Vermont, for a number of years and, thus, she paid less rent than was actually due. As part of the resolution of the criminal case, she voluntarily agreed to pay restitution to the United States Department of Housing and Urban Development (HUD), in connection with public housing fraud.

          Nguyen was indicted by a federal grand jury on March 27, 2014 for making false statements in connection with a welfare benefit plan. The grand jury handed down a Superseding Indictment on July 15, 2015 that added a charge of conspiring to defraud HUD.   On November 25, 2014, Nguyen pled guilty to filing a false tax return and to welfare benefit fraud.  She was released on her own recognizance pending sentencing.

            This case was investigated by the Federal Protective Service, the IRS, the Social Security Administration’s Office of Inspector General, the United States Secret Service, and by HUD.  Acting United States Attorney Cowles commends those agencies for their work.  The case was prosecuted by Assistant United States Attorney Nancy J. Creswell.  The defendant was represented by Attorney Mark Kaplan

The Office of the United States Attorney for the District of Vermont stated that Anthony Montesino, 31, of Bronx, New York was sentenced today to a time served sentence for possessing a firearm as a convicted felon.  United States District Judge William K. Sessions III also ordered that Montesino serve a two-year period of supervised release.

According to court records, Luis Santiago, Gilbert Bahamundi, Krystal Brace, and Anthony Montesino were involved in the distribution of crack cocaine in the Burlington area during the summer of 2013.  Between June and September 2013, law enforcement conducted controlled purchases of crack cocaine from Brace’s apartment.  On September 11, 2013, a search warrant was executed at Brace’s apartment, where law enforcement encountered Santiago, Brace, Bahamundi, and Montesino.  Law enforcement recovered three handguns --- a Walther .380 caliber pistol, a Glock .40 caliber pistol, and a Ruger .380 pistol.  Also recovered from both Santiago and the apartment generally was a total of approximately $8,000 in cash.    

Investigation determined that all three of the pistols had been straw-purchased shortly before the execution of the search warrant.  All of the individuals found in the apartment were charged federally: Santiago and Bahamundi were ultimately charged with conspiracy to distribute 28 grams or more of cocaine base; Brace was charged with making false statements to a federally licensed firearms dealer in connection with the purchase of the Ruger .380 pistol; and Montesino was charged with possessing a firearm as a convicted felon.  In addition, John Olsen was charged with making false statements to a federally licensed firearms dealer, in connection with his purchase of the Glock handgun.  On November 24, 2014, Santiago was sentenced to 72 months in prison and 4 years of supervised release; on October 27, 2014, Bahamundi was sentenced to 18 months in prison and 4 years of supervised release; and on October 6, 2014, John Olsen was sentenced to 1 year of probation.  Brace has not yet been sentenced.   

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Burlington Police Department, with the assistance of the United States Marshals Service.  The government was represented by Assistant U.S. Attorney Kevin J. Doyle.  Montesino was represented by Ian P. Carleton, Esq.   

          Eugenia A.P. Cowles, the Acting United States Attorney for the District of Vermont, stated that
 Stephanie Schump, of Milton, Vermont, was sentenced on March 13, 2015 by Chief United States District Court Judge Christina Reiss, to 22 months in prison for conspiracy to distribute both heroin and cocaine base in Vermont.  Schump was also sentenced to 2 years of supervised release following her release from prison.

          According to Court records, on March 8, 2014, special agents with the United States Drug Enforcement Administration  (“DEA”) executed a federal search warrant at an apartment at 246 ½ Main Street in Winooski, Vermont and arrested Joe Young, a resident of the Bronx, New York who was present in Burlington to sell heroin and cocaine base.  Young was known on the street as “Moe.”  Young was in possession of both heroin and crack cocaine that he and others, including Stephanie Schump, intended to sell in Vermont.  Stephanie Schump conspired with Joe Young by transporting him between the Bronx, New York and Burlington, Vermont on a number of occasions.  She also transported controlled substances for Joe Young from the Bronx to Vermont, met and picked up Young’s drug couriers at a bus station in Plattsburg, New York, and sold heroin and cocaine for Young in Vermont.                                                                                                                                                                  

          Schump was indicted by a federal grand jury on March 20, 2014.  She pled guilty to conspiracy to distribute heroin and cocaine base on November 6, 2014.  She has been detained in prison since her arrest on May 15, 2014.

            This case was investigated by the Drug Enforcement Administration (DEA).  The United States Attorney, Eugenia A. P. Cowles, commends that agency for its work.  The case was prosecuted by Assistant United States Attorney Nancy J. Creswell.  The defendant was represented by Attorney John C. Mabie.

The United States Attorney’s Office announced today that it had filed a forfeiture lawsuit against the real property at 24 and 24.5 Cottage Street in Rutland Vermont. The suit was brought pursuant to 21 U.S.C. § 881(a)(7), which provides that property which is used to commit or to facilitate the commission of felony drug offenses can be forfeited to the Government.

The property contains two buildings which are used as a single room occupancy hotel. Tenants each have use of a private room, but all bathrooms and kitchen spaces are shared among all tenants. Between them the two buildings have seventeen rooms plus a private apartment, which was occupied by Michael Petruccelli, the son of the owners, and his wife, Stacia Petruccelli.       

The complaint and the accompanying affidavit of FBI agent Christopher Destito show that Michael Petruccelli was a crack cocaine addict who allowed drug dealers to stay at the property to sell drugs so long as they paid him in crack cocaine. The documents show Petruccelli also sold cocaine himself and helped some of the dealers sell their drugs, which included both heroin and crack cocaine. The documents also show that Michael Petruccelli went so far as to phone a dealer staying at the property to warn him that the police had entered the building and were heading for his room. The documents also show that law enforcement made seven buys of illegal narcotics at the property, including two buys of crack cocaine from Michael Petruccelli, and that he used a safe in the basement to store narcotics and assisted larger scale dealers to bag and sell their drugs.

The court documents show that the property is owned by a New York corporation owned by Francesca and Rudolph Petruccelli, parents of Michael Petruccelli. The owners have put the property in the control of Michael Petruccelli. The documents state that Mr. and Mrs. Petruccelli were informed by law enforcement of the drug dealing at the property, that they asked for assistance in stopping the illegal trade but that when they were informed that their son was dealing drugs there, they refused to take control of the property back from him.  Michael Petruccelli was charged by federal indictment on February 4, 2015, with crack cocaine distribution. He is currently detained pending further proceedings in his criminal case.

The forfeiture proceedings against the Cottage Street properties and the criminal case against Michael Petruccelli are part of an on-going effort by the U.S. Attorney’s Office in conjunction with federal, state and local law enforcement agencies to address drug activity in Rutland. During the past year, the U.S. Attorney’s Office has charged approximately thirty individuals federally who have facilitated the drug trade in Rutland, Vermont.

The charged individuals have included out-of-state dealers responsible for bringing significant quantities of heroin and crack cocaine to Rutland; local residents who provided housing, transportation, and local distribution networks to these out-of-state dealers; and couriers who moved the drugs between other states (most frequently New York) and Vermont. 

The United States Attorney’s Office stated that Troy Gibbs, 52, of Rutland, pled guilty on March 10, 2015 under the federal “crack-house statute,” 21 U.S.C. § 856(a)(2), which makes it a crime, subject to 20 years imprisonment, to knowingly allow drug dealers to stay at a residence to store, use or distribute their drugs.  According to documents released in the case, Gibbs allowed out-of-state dealers to stay at his residence on Summer Street in Rutland in exchange for crack cocaine.  Gibbs will be sentenced by Chief United States District Court Judge Christina Reiss on June 23, 2015. 

The United States Attorney’s Office’s efforts to combat drug trafficking in Rutland have been supported by the work of the Vermont State Police Drug Task Force, the Drug Enforcement Agency, and the Federal Bureau of Investigation, and the Rutland Police Department. The United States Marshals Service will play a key role in the forfeiture of the Cottage Street properties.  The criminal cases are being handled by AUSA Joe Perella.  AUSA James Gelber is responsible for the property forfeitures.

Troy Gibbs is represented by Brooks McArthur, Esq.  Michael Petruccelli is represented by Thomas Sherrer, Esq.

Eugenia A.P. Cowles, the Acting United States Attorney for the District of Vermont, stated that Albert Johnson, 55, of Burlington, Vermont was sentenced on March 6, 2015 by Chief United States District Court Judge Christina Reiss, to 50 months in prison for possession with intent to distribute cocaine base in Vermont.  Johnson was also sentenced to 5 years of supervised release following his release from prison.

According to Court records, on March 8, 2014, members of the Burlington Police Department executed a state search warrant at an apartment on College Street in Burlington, Vermont and arrested Albert Johnson, known on the street as “MD.”  Johnson was in possession of crack cocaine that he intended to sell in Vermont.  At the time Johnson was arrested, he was being supervised by the Office of Vermont Probation and Parole for a 2012 state drug conviction in Vermont.

Johnson was indicted by a federal grand jury on March 27, 2014.  He pled guilty to conspiracy to distribute heroin and cocaine base on November 12, 2014.  He has been detained in prison since his arrest.

This case was investigated by the Burlington Police Department.  The Acting United States Attorney, Eugenia A.P. Cowles, commends that agency for its work.  The case was prosecuted by Assistant United States Attorney Nancy J. Creswell.  The defendant was represented by Attorney Michael L. Desautels of the Office of the Federal Public Defender.

Eugenia A.P. Cowles, the Acting United States Attorney for the District of Vermont, stated that Joe Young, 37, of the Bronx, New York, was sentenced on March 6, 2015 by Chief United States District Court Judge Christina Reiss, to 48 months in prison for conspiracy to distribute both heroin and cocaine base in Vermont.  Young was also sentenced to 3 years of supervised release following his release from prison.

According to Court records, on March 8, 2014, special agents with the United States Drug Enforcement Administration  (“DEA”) executed a federal search warrant at an apartment at 246 ½ Main Street in Winooski, Vermont and arrested Joe Young, known on the street as “Moe.”  Young was in possession of both heroin and crack cocaine that he and others intended to sell in Vermont.  The drugs had been brought to Winooski, Vermont by a courier hired by Young who took a bus to Plattsburg, New York.  The courier was picked up and transported to Winooski at the direction of Young.  At the time Young was arrested, he was on federal supervised release from a prior drug and gun conviction in the Southern District of New York.  He was in Vermont without the knowledge or permission of his New York probation officer.                                                                                        

Young was indicted by a federal grand jury on March 20, 2014.  He pled guilty to conspiracy to distribute heroin and cocaine base on November 6, 2014.  He has been detained in prison since his arrest.

This case was investigated by the DEA.  The Acting United States Attorney, Eugenia A.P. Cowles, commends that agency for its work.  The case was prosecuted by Assistant United States Attorney Nancy J. Creswell.  The defendant was represented by Attorney David L. McColgin of the Office of the Federal Public Defender.

The Office of the United States Attorney for the District of Vermont stated that Damion Richards, 34, and Delroy Williams, 38, both of Brooklyn, New York, were arraigned today on charges of money laundering and conspiring to distribute oxycodone. A federal grand jury sitting in Burlington handed down the three-count indictment. 
                                                                             
At the arraignment before the Honorable John M. Conroy, both men pled not guilty to the charges.  Judge Conroy also released both men on conditions restricting their travel to the states of Vermont and New York. 

According to prosecutors, Richards and Williams are accused of working with Caryn Bartlett, of Winooski, to sell significant quantities of oxycodone in Chittenden County from about March 2013 through late October of 2013.  Bartlett served as their Vermont distributor and funneled drug proceeds to Richards and Williams by depositing funds in their bank accounts.  Bartlett has already pled guilty in federal court to conspiracy to distribute oxycodone.  

The indictment charging Richards and Williams with drug trafficking and money laundering is an accusation only; they are presumed innocent unless and until proven guilty.  If convicted on the drug trafficking charge, they face up to 20 years in prison.   The money laundering counts carry also carry a maximum penalty of 20 years= imprisonment.  The actual sentence, in the event of conviction, will be determined by the Court with reference to the advisory Federal Sentencing Guidelines. 

The investigation was led by the Federal Bureau of Investigation.

Assistant United States Attorney Christina E. Nolan is handling the prosecution.  Richards is represented by Jason Sawyer, Esq., of Burlington.  Williams is represented by Robert Hemley, Esq., also of Burlington.

The Office of the United States Attorney for the District of Vermont stated that Larry Garrow, Jr., 27, of Richford, Vermont was sentenced on Friday to 30 months of imprisonment on a charge of possession stolen firearms.  Chief Judge Christina Reiss also ordered that Garrow pay $8,000 in restitution to the Rite Way Sports Shop, and serve a three-year period of supervised release following his term of imprisonment.

In his plea agreement with the government, Garrow stipulated that he stole thirty-two firearms from Rite Way Sports Shop on April 19, 2014.  The firearms consisted of .380 caliber and 9 mm handguns.  In the immediate aftermath of the gun store burglary, Garrow provided approximately twenty of the firearms to another individual.  Those firearms have not been recovered.  Law enforcement recovered nine handguns and two pellet guns on April 23, 2014, when Garrow’s father located them in the defendant’s bedroom and turned them over to the Vermont State Police.  The serial numbers on the recovered handguns corresponded to the serial numbers on firearms reported stolen by Rite Way.  Garrow was arrested on April 23, 2014, and charged with stealing firearms from a federally-licensed firearms dealer.  He has remained in custody since his arrest.

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the United States Border Patrol, the Vermont State Police, and the Hardwick Police Department.  The United States was represented by Assistant U.S. Attorney Kevin Doyle.  Garrow was represented by Jordana M. Levine, Esq., of the law firm Marsicovetere Law Group, P.C., of White River Junction, Vermont.

The Office of the United States Attorney for the District of Vermont announced that Billie Preston, 42, a former resident of Monkton who now lives in South Burlington, was sentenced today in United States District Court in Burlington to 21 months of imprisonment following her guilty plea to a charge of wire fraud.  Chief U.S. District Judge Christina Reiss ordered that Preston serve three years of supervised release following completion of her prison term and pay restitution of slightly more than $86,000.  The court directed Preston to surrender to the Bureau of Prisons on April 8 to begin serving her sentence.

According to court records, between approximately November 2011 and late April 2014, Preston was employed as a bookkeeper by Endyne, Inc., an environmental testing laboratory located in Williston.  Preston handled the company's payroll and accounts receivables and payables. 

Beginning in about January 2012 and continuing through the end of April 2014, Preston embezzled about $84,000 from Endyne, primarily by falsifying payroll records to cause the firm to issue her paychecks and make electronic funds transfers in excess of her authorized salary.  Preston also made electronic transfers of company funds to pay her personal bills.

In sentencing Preston to prison, Judge Reiss noted that in 2010, Preston had pled guilty in state court to embezzling from another former employer and was serving probation as part of a deferred sentence when she stole from Endyne. 

This case was investigated by the Williston Police Department and the Federal Bureau of Investigation.

Preston is represented by Robert Kaplan.  The prosecutor is Assistant U.S. Attorney Gregory Waples.

The Office of the United States Attorney for the District of Vermont stated that Von Simmonds, 32, of Brooklyn, New York was sentenced today to 35 months for his participation in a conspiracy to distribute cocaine base in Vermont during the winter of 2012-2013.  Chief Judge Christina Reiss also ordered that Simmonds serve a three-year period of supervised release after his incarceration.

Simmonds was convicted of this offense after a jury trial in Rutland in June 2014.  According to the evidence presented at trial, law enforcement officers, acting on a tip, encountered Simmonds in a Rutland apartment on March 7, 2013.  Officers located Simmonds in a bedroom of the apartment.  Also found in the bedroom was a pillow case containing $4,503 in cash and a rock of cocaine base.  Simmonds acknowledged making several trips from Brooklyn to Vermont with crack cocaine.  Simmonds was arrested that night and charged with conspiracy to distribute cocaine base.  He has remained in custody since his arrest.

This matter was investigated by the Federal Bureau of Investigation and the Rutland Police Department with the assistance of the Vermont Department of Corrections.  The government was represented by Assistant U.S. Attorneys Kevin Doyle and Craig Nolan.  Simmonds was represented by Steven L. Barth, Esq. of the Federal Public Defender’s Office.   

The Office of the United States Attorney for the District of Vermont stated that Jose Bruzual, 51, of St. Johnsbury, Vermont, was sentenced on February 23, 2015, in United States District Court in Burlington, Vermont, to serve 30-months imprisonment and a five-year period of supervised release following his conviction on one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B).  Judge William K. Sessions III also ordered Bruzual to pay a $100 special assessment.

According to court records and proceedings, in the fall of 2013, law enforcement was conducting undercover investigation into the use of file-sharing programs on the Internet to trade child pornography.  It discovered that a computer with an IP address later associated with Bruzual had images of child pornography on it.  Bruzual was then a teacher at St. Johnsbury Academy and a dorm proctor.  On November 21, 2013, law enforcement executed a warrant to search Bruzual’s residence and computers, and discovered more than 1,000 still images and hundreds of videos of child pornography.  Bruzual was taken into custody and later fired by St. Johnsbury Academy.  Bruzual’s collection included sadistic and masochistic material.  Among the images of child pornography found in Bruzual’s collection were images in which Bruzual had altered photographs of the victim child to feature the faces of known little girls. 

The government advocated for a sentence of 78 months, which was at the low-end of the advisory Sentencing Guidelines range.  In rejecting the government’s recommended sentence and granting the defendant’s request for a variance, Judge Sessions noted that at the time it was seized by law enforcement, Bruzual’s computer had the “share function” turned off, meaning that images of child pornography could not be uploaded by other offenders from his computer.  Judge Sessions also noted that Bruzual had no prior criminal record, he is likely to be deported as he is a Venezuelan citizen, he will not receive treatment in prison because he will likely be deported, and the advisory Guideline for child pornography offenses can lead to excessive sentences.  Based on the foregoing, Judge Sessions granted the requested variance and reduced Bruzual’s sentence from the 78-month sentence called for by the advisory Guidelines to 30-months. 

Acting United States Attorney Eugenia A.P. Cowles commended the efforts of Homeland Security Investigations and investigators with the Vermont Attorney General’s Office in the investigation and prosecution of Bruzual.  The prosecution of Bruzual was handled by Assistant U.S. Attorney Barbara A. Masterson.  Bruzual was represented by David L. McColgin. 

Acting U.S. Attorney Cowles noted that this prosecution is part of the U.S. Department of Justice=s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

The Office of the United States Attorney for the District of Vermont stated that Michael Karlberg, 26, of East Montpelier, Vermont, was sentenced on February 23, 2015, in United States District Court in Burlington, Vermont, to serve a lifetime period of supervised release following his conviction on one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B).  Judge William K. Sessions III also ordered Karlberg to pay a $100 special assessment.  

According to court records and proceedings, in January 2013, the parents of a minor in Texas notified law enforcement that their daughter was being harassed by a man she had met in a chatroom on the Internet.  The man was pressuring her to take sexually explicit photographs of herself to send to him.  Subsequent investigation identified the man chatting with the minor as Karlberg.  Karlberg consented to law enforcement searching his computer, and on it were found images of child pornography that included sadistic and masochistic conduct and bestiality.  Law enforcement also found evidence that Karlberg had communicated with several other teenage girls and coerced them into masturbating for him on camera.  Unknown to the girls, Karlberg secretly recorded them masturbating for him. 

After reviewing a report of Karlberg’s mental condition and reviewing his personal history and characteristics, Judge Sessions declined to sentence Karlberg to a prison term and, instead, ordered him to be on supervised release for the rest of his life.  Judge Sessions ordered the period of supervised release to be evaluated after 20 years and every five (5) years thereafter to determine if the term of supervision should be terminated.  The government did not object to the sentence.

Acting United States Attorney Eugenia A.P. Cowles commended the efforts of the Vermont Attorney General’s Office in the investigation and prosecution of Karlberg.  The prosecution of Karlberg was handled by Assistant U.S. Attorney Barbara A. Masterson.  Karlberg was represented by David L. McColgin. 

Acting U.S. Attorney Cowles noted that this prosecution is part of the U.S. Department of Justice=s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney=s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

The Office of the United States Attorney for the District of Vermont stated that Justin Ede, 30, of Enosburg Falls, Vermont was sentenced to 18 months in prison, having pled guilty to one count of possessing child pornography.  Senior United States District Judge William K. Sessions III, sitting in Burlington, also sentenced Ede to 5 years of supervised release.   

Court records indicate that in June 2014, federal agents executed a federal search warrant for Ede=s Swanton residence.  The warrant stemmed from an internet lead that suggested that someone in Ede=s residence was sharing child pornography using peer-to-peer file sharing software.  During the search, Ede admitted that he had downloaded child pornography over a two-month period using file-sharing software.  Child pornography images were subsequently located on Ede's computer.

Court records further show that Ede had a felony conviction in 2007 for lewd and lascivious conduct.  That case involved Ede engaging in non-consensual touching of a 17-year-old female.  Ede committed several violations of probation in that case, resulting in his incarceration.  At the time of his federal offense, Ede was a registered sex offender as a result of the state conviction. 

For his crime, Ede faced a maximum penalty of 10 years in prison, and up to a $250,000 fine.  In sentencing Ede, Judge Sessions cited his prior conviction for a contact sexual offense and past violations of probation.  He also commented that Ede's risk of recidivism was reduced by his stable environment, including employment and family support.

The investigation was led by the Department of Homeland Security Investigations. Assistant United States Attorney Christina E. Nolan prosecuted the case.  Ede is represented by Steven Barth, Esq., of the Federal Public Defender's Office.   

This prosecution was part of the U.S. Department of Justice=s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices and the Internet Crimes Against Children Task Force, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

The Office of the United States Attorney for the District of Vermont stated that Kron Lewis a.k.a. Keon Lewis, 27, of Trinidad and Tobago, Joseph Lupien, 33, of Barre, VT and Matthew Bennett, 20, of Barre, VT, made initial appearances today in the United States District Court in Burlington, following their arrests for conspiracy to distribute heroin.  U.S. Magistrate Judge John M. Conroy detained Lewis pending trial and there is a detention hearing for Lupien scheduled for February 23, 2015.  Bennett was released on conditions. 

According to court documents, on February 18, 2015, a Vermont State Police trooper conducted a motor vehicle stop on I-89 in Sharon, VT of a vehicle occupied by Bennett, Lupien, Lewis and a female. Lupien gave the trooper permission to search the vehicle and inside a bag in the trunk of the car, troopers found approximately 3050 individual bags of heroin and 16.9 grams of bulk heroin.  Bennett and Lupien told law enforcement that they had just picked up Lewis and the female at the bus stop in White River Junction and that the bag containing the heroin belonged to Lewis.  Both also said that they knew Lewis was bringing heroin to Vermont on the bus and that they had given Lewis a ride from the bus station on several other occasions. Bennett and Lupien said that they were paid in heroin and/or cash for helping Lewis.    

The Acting United States Attorney, Eugenia A.P. Cowles, emphasized that the charge against Lewis, Lupien and Bennett is merely an accusation and that the defendants are presumed innocent unless and until they are proven guilty.

If convicted, the defendants face up to twenty years of imprisonment and a fine of up to $1,000,000.  The actual sentence would be determined with reference to federal sentencing guidelines.

Lewis is represented by David Watts, Esq.  Lupien is represented by Michael Desautels, Esq. Bennett is represented by Elizabeth Mann, Esq.  The prosecutor is Assistant U.S. Attorney Wendy G. Fuller.

The Office of the United States Attorney for the District of Vermont stated that Michael Petruccelli, 49, of Rutland, Vermont has been charged with distributing crack cocaine in Rutland, Vermont in a two-count indictment returned on February 4, 2015. Petruccelli pled not guilty before U.S. Magistrate Judge John Conroy to the charges against him. Judge Conroy ordered that Petruccelli be detained pending trial in light of Petruccelli’s prior criminal record and drug addiction issues.

            According to the government allegations, Petruccelli resides at the boarding house at 24 Cottage Street in Rutland, which is owned by his parents. According to the government’s detention motion, the government alleges that in November 2014, an FBI Special Agent warned Petruccelli to stop selling drugs or he would be arrested. Petruccelli is now charged with committing crack cocaine distribution crimes both before and after this warning from the FBI.

            The United States Attorney emphasizes that the charges contained in the Indictment are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty. If Petruccelli is convicted, he faces a maximum possible term of imprisonment of twenty years.

            The United States is represented in this matter by Assistant U.S. Attorney Joseph Perella. Petruccelli is represented by Thomas Sherrer, Esq. The investigation was conducted by the Vermont State Police Drug Task Force, the Federal Bureau of Investigation, and the Drug Enforcement Administration.

The Office of the United States Attorney for the District of Vermont has stated that Jeffrey Donna, 39, of Richford, Vermont has been sentenced to prison for his role in a cross-border marijuana trafficking conspiracy.   In August 2014, Donna was convicted of conspiracy to distribute marijuana.  As part of his sentence, Donna has forfeited a second home in Florida, a second Florida property, a Richford, Vermont rental property, a Harley Davidson motorcycle, a Polaris ATV, a Cadillac Escalade, twenty-two guns, and $135,000 in drug money.  Donna will begin serving his 32 month sentence in March.

Donna, and his co-conspirator, Roy “Opie” McAllister II, have been described as kingpins in a marijuana trafficking business that began in the mid-2000s and continued until the two were arrested on May 29, 2013.  The two defendants were responsible for bringing bulk quantities of marijuana across the Canadian border into northern Vermont for several years.  According to the evidence of record, Donna and McAllister moved between 1,000 and 3,000 kilograms of marijuana as part of the conspiracy.  The marijuana trafficking has been characterized as a for-profit enterprise, in which Donna and McAllister made lavish expenditures using drug proceeds. 

McAllister, 39, of Montgomery, Vermont is facing sentencing on March 19, 2015.  McAllister has been convicted of conspiracy to distribute marijuana and filing false tax returns in 2010 and 2011.  To date, he has been ordered to forfeit a home heating oil delivery truck used by McAllister Fuels, 115 Troy Street, Montgomery, Vermont, which the government alleged was bought with McAllister’s drug proceeds.  He has also been ordered to forfeit 34 guns, two Harley Davidson motorcycles, a Polaris ATV, a Chevy Tahoe, and a Ford F-150 Harley Davidson edition pick-up truck.  Forfeiture against his residence, 2404 Regan Road, Montgomery, Vermont, jewelry, and a GMC Yukon are pending. 

As part of the marijuana trafficking conspiracy, the two defendants were assisted by Jesse Soule, 48, also of Montgomery, Vermont.  Soule was convicted in January 2014 of his role in the marijuana trafficking conspiracy.  According to court records, Soule participated in the conspiracy by storing bulk marijuana on his farm.  Soule is currently in jail serving a 13 month sentence.  He has forfeited $250,000 in drug proceeds to the government and a Polaris ATV. 

Kirt Westcom, 48, of Fairfield, Vermont, also has been convicted of conspiracy to distribute marijuana.  He received bulk marijuana from Donna and McAllister at his farm on 262 Egypt Road, Fairfield, Vermont for several years.  Westcom is currently in jail serving a 24 month sentence.  Westcom has forfeited $135,000 to the government, as well as a Harley Davidson motorcycle, and a Ford F-350 pick-up truck.

Seven other individuals have pleaded guilty to federal crimes arising out of this drug enforcement action in Franklin County, Vermont.  They are Jeffrey Baisley, 32, of Richford, Vermont, Jeffrey Tatro, Jr., 28, of Richford, Vermont, Robert Patterson, 55, of Richford, Vermont, Jonathan Palermo, 29, of Essex, Vermont, and Benjamin Pratt, 32, of Colchester, Vermont, who all have been convicted of conspiracy to distribute marijuana.  Eric Jette, 32, of Enosburg, Vermont and Johnthan Aldrich, 34, of Richford, Vermont also have been convicted of federal drug charges.

As part of this federal law enforcement action, over $600,000 in cash, three pieces of real property, more than 70 guns, and seventeen vehicles have been forfeited.

The United States Attorney’s Office would like to thank the United States Border Patrol, the Franklin County Sheriff’s Office, and the Drug Enforcement Administration for their work in conducting this investigation.  This investigation was also assisted by the United States Internal Revenue Service and the Bureau of Alcohol, Tobacco and Firearms. 

The United States was represented by Assistant U.S. Attorney Heather Ross.  Jeffrey Donna was represented by John Pacht, Hoff Curtis.  Roy McAllister II is represented by Peter Langrock, Langrock Sperry & Wool.  Jesse Soule was represented by Paul Volk, Blodgett, Watts, Volk & Sussman.  Kirt Westcom was represented by Katina Francis Ready, Esq.

The Office of the United States Attorney for the District of Vermont announced that Carmen Dozier, 38, of Middletown Springs, pleaded not guilty today in United States District Court in Burlington to federal fraud charges.  U.S. Magistrate Judge John M. Conroy released Dozier on conditions pending trial, which has not been scheduled.

Last week, a federal grand jury in Rutland returned a two-count indictment charging Dozier with wire fraud and bank fraud.  According to the indictment, in May 2013 Dozier was hired as the front desk manager at the Brandon Inn in Brandon, Vermont.  Dozier prepared payroll records which were sent to the Inn's payroll processing company.  She also took and confirmed reservations and paid vendors for goods and services for the Inn.  The indictment charges that, beginning in July 2013 and continuing until mid-May 2014, Dozier embezzled about $70,000 from the Inn.  She did this by falsifying the Inn's payroll records to inflate the regular and overtime hours she ostensibly worked, thereby causing the Inn's payroll processor to issue her paychecks or electronic direct deposits in amounts that exceeded her earned income.  The indictment further charges that Dozier caused fraudulent transfers of Inn funds to her personal bank account at Lake Sunapee Bank.  In addition, Dozier fraudulently used credit cards issued to the Inn's owners to make personal purchases, and fraudulently opened and used a BillMeLater PayPal service account.

The indictment accuses Dozier of also defrauding Lake Sunapee Bank by depositing, and attempting to deposit, about $20,000 worth of checks which were made payable to Dozier and which were purportedly signed by family members.   In fact, the checks were written against out-of-state accounts which either were closed or did not contain sufficient funds.  Dozier attempted to withdraw the apparent proceeds of the checks from Lake Sunapee Bank before the checks were dishonored.

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

If convicted, Dozier faces up to 30 years of imprisonment and a fine of up to $1,000,000.  The actual sentence would be determined with reference to federal sentencing guidelines.

This case was investigated by the Brandon Police Department and the Federal Bureau of Investigation.

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