State Housing Official Sentenced on Bribery and Fraud Charges

A former employee of the Michigan State Housing Development Authority was sentenced today to a year in prison after her conviction on charges related to bribery and fraud.
Angela Reed, age 42, of Detroit, pleaded guilty on November 6, 2012, to one count of conspiracy to accept bribes and make false claims to the U.S. Department of Housing and Urban Development before U.S. District Judge Julian Abele Cook, Jr., who imposed sentence today.
Reed was the waiting list coordinator for the Homeless Assistance Recovery Program, a HUD program established to give homeless persons preference in the awarding of housing vouchers. Reed and other co-defendants devised a scheme to have persons on the voucher waiting list improve their chances of getting their vouchers much more quickly by creating false document so that they would receive certification even though they were not homeless. At the direction of Reed and her co-defendants, applicants made false entries in their applications. The scheme also involved the forging of signatures of employees of homeless shelters. In return, Reed received cash from the persons who fraudulently received homeless vouchers
In addition to Ms. Reed four other persons have been convicted for their participation in this scheme.
“The defendant abused her position of trust to divert benefits intended for people who are homeless,” McQuade said. “Prosecutions like this one are necessary to ensure the integrity of programs to help those in true need.”
The case was investigated by special agents of the FBI and the HUD Office of Inspector General with the assistance of Michigan State Housing Development Authority.

New Jersey Man Pleads Not Guilty to Transporting Minor to Engage in Criminal Sexual Activity

PROVIDENCE, RI—Daniel Berger, 27, of Haskell, New Jersey, pleaded not guilty in U.S. District Court in Providence, Rhode Island, today to a federal indictment charging him with one count of transportation of a minor with intent to engage in criminal sexual activity, announced United States Attorney Peter F. Neronha; Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI; Portsmouth, Rode Island Acting Police Chief Jeffrey Furtado; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
According to information presented to the court, it is alleged that on July 24, 2013, Berger traveled from New Jersey to Rhode Island to meet with a minor female he befriended on the Internet. It is alleged that the defendant transported the minor to his residence in Haskell, New Jersey, with the intent to engage in criminal sexual activity.
Responding to an Amber Alert issued in Rhode Island for the young girl, local, state, and federal law enforcement in Rhode Island and New Jersey worked collaboratively and located the victim in New Jersey. FBI agents from Newark assisted by local and state law enforcement officers recovered the victim shortly after midnight at Berger’s residence.
Berger was detained in New Jersey on a federal criminal complaint issued in the District of Rhode Island on a charge of transportation of a minor with intent to engage in criminal sexual activity. He was transported to Rhode Island on July 29, 2013, by the United States Marshals Service and was ordered detained following an initial appearance on July 30, 2013, in U.S. District Court in Providence.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. If convicted of transportation of a minor with intent to engage in criminal sexual activity, Berger faces statutory penalties of 10 years to life in federal prison, up to five years of supervised release and a fine of up to $250,000.
The case is being prosecuted by Assistant United States Attorneys Stephen G. Dambruch and Milind M. Shah.
Portsmouth Police, Rhode Island State Police, and FBI agents from Providence and Newark, New Jersey, were assisted by the New Jersey State Police and officers from the Ringwood, Wanaque, Paterson, and Clifton, New Jersey, Police Departments.

Man Arrested in Robbery of Clayton Bank Branch in Knoxville

At approximately 2:00 p.m. on August 16, 2013, the Federal Bureau of Investigation (FBI) and the Knoxville Police Department (KPD) received a report that the Clayton Bank branch at 620 Market Street in Knoxville, Tennessee, was robbed by a lone male. The subject presented a demand note to bank personnel indicating that he had a weapon. After obtaining an undetermined amount of money from the bank, the subject fled on foot.
Responding officers with the Knoxville Police Department, with the cooperation of the public, made a quick arrest nearby. Arrested without incident was Nicholas Wayne Sandlin, age 62, from Knoxville, Tennessee. Sandlin is expected to make an initial appearance in federal court later today.
This matter is being investigated jointly by the FBI Safe Streets Task Force (SSTF), composed of the FBI, KPD, and Knox County Sheriff's Office, and the KPD Major Crimes Unit.
All defendants are presumed innocent unless or until proven guilty beyond a reasonable doubt.

Knoxville Resident Charles Bush Sentenced to Serve 151 Months in Prison for Child Pornography

KNOXVILLE, TN—Charles Wesley Bush, 33, of Knoxville, Tennessee, was sentenced on August 20, 2013, by the Honorable Thomas A. Varlan, Chief U.S. District Court Judge to serve 151 months in federal prison.
Bush was indicted in October 2012 and pleaded guilty in March 2013 to a four-count indictment charging him with distribution and possession of child pornography. Bush came to the attention of federal authorities through his use of the Internet to distribute child pornography. A forensic examination of his computer found him to be in possession of 232 images and 299 video files of child pornography.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Frank M. Dale, Jr. and Melissa Kirby represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “Resources.”

Michigan Man Sentenced to 165 Years for Child Sex Tourism Offenses

WASHINGTON—A former Michigan resident was sentenced today in Miami to 165 years in prison, followed by a lifetime of supervised release, for child sex tourism offenses, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, U.S. Immigration and Customs Enforcement (ICE) Deputy Director Daniel Ragsdale, and Special Agent in Charge Alysa D. Erichs of the ICE Homeland Security Investigation’s (HSI) Miami Office.
Matthew Andrew Carter, 68, aka “William Charles Harcourt” and “Bill Carter,” formerly of Brighton, Michigan, was sentenced by U.S. District Judge Joan A. Lenard of the Southern District of Florida. On February 28, 2013, a jury found Carter guilty of five counts of traveling in foreign commerce from the United States to Haiti for the purpose of engaging in illicit sexual conduct with children and one count of attempting to do so.
“For 15 years, Matthew Carter, under the guise of serving as an international humanitarian, sexually abused more than 50 Haitian children,” said Acting Assistant Attorney General Raman. “He held himself out as a savior to vulnerable children in Haiti but in fact cruelly forced those children to choose between poverty and submitting to repeated sexual abuse. Child sex tourism is a heinous crime, and today’s sentence demonstrates our commitment to bringing the weight of justice on anyone who seeks to exploit our most vulnerable citizens, wherever they reside.”
“Today’s sentence brings to a close a horrific chapter in the lives of these victims,” said U.S. Attorney Ferrer. “While nothing can ever undo the abuse these victims endured throughout the years, we hope that today’s sentence restores them with some sense of confidence and trust and satisfaction that justice has been served.”
“Crimes against children are some of the most heinous our agency investigates,” said ICE Deputy Director Daniel Ragsdale. “It is even more despicable that Mr. Carter used his position of trust to abuse children who relied on him for care. Today’s sentence should serve as notice to other child predators. We will find you, arrest you, and make sure that you are prosecuted to the fullest extent of the law.”
According to court documents and evidence presented at trial, from 1995 to 2011, Carter resided at and operated the Morning Star Center near Port-au-Prince, Haiti, prior to his arrest on May 8, 2011. The Morning Star Center was a residential facility that provided shelter, food, clothing, and school tuition to Haitian children. The children who lived at the Morning Star Center were from impoverished families that could not feed, educate, or otherwise support their children. The evidence at trial showed that Carter specifically targeted children in need and preyed on their vulnerability. Between 1995 and 2011, Carter frequently traveled between the United States and Haiti in order to raise funds from churches and donors for the continued operation of the center. Carter sexually and physically abused the children in his care and custody at the center during this period of time. According to court documents and evidence presented at trial, Carter used force to get these children to comply with his sexual demands and required the children to participate in sexual acts in order to receive food, remain at the center, and/or continue to receive school tuition payments.
At trial, 16 Haitian victims who resided at the Morning Star Center between 1995 and 2011 testified. Additionally, four witnesses testified that they were sexually abused by Carter in London during the 1970s. Carter previously was charged with and acquitted of charges related to the sexual abuse of children in London, Cairo, and Winter Haven, Florida.
The case was investigated by HSI Miami, HSI Country Attaché Santo Domingo, Dominican Republic, and the HSI Santo Domingo Transnational Criminal Investigative Unit. Substantial assistance was provided by the U.S. Secret Service Miami Field Office; Haitian National Police Brigade for the Protection of Minors; Haitian Social Services; Ministry of the Interior for Haiti; Bureau of Diplomatic Security, Regional Security Office for the U.S. Embassy in Port-au-Prince; Consular Section of the U.S. Embassy in Port-au-Prince; London Metropolitan Police Service; FBI’s Washington, Boston, and Miami Field Offices; ICE-HSI Attaché’s Offices in London and Cairo; U.S. Coast Guard; and U.S. Citizenship and Immigration Service in Port-au-Prince.
The case was prosecuted by Trial Attorney Bonnie L. Kane of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Maria K. Medetis of the Southern District of Florida.

Former Scituate Resident Pleads Guilty to Possessing and Distributing Child Pornography

PROVIDENCE, RI—Robert Brown, Jr., 42, formerly of Scituate, pleaded guilty in federal court in Providence today to possessing nearly 2,300 images and more than 30 videos depicting child pornography involving prepubescent children, announced United States Attorney Peter F. Neronha and Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI.
Appearing before U.S. District Court Judge William E. Smith, Brown pleaded guilty as charged in a federal indictment returned in December 2012 to three counts of distribution of child pornography and one count of possession of child pornography. No plea agreement was filed in this matter.
According to information presented to the court, beginning in September 2009, an undercover FBI agent from the San Diego Division logged on to online file-sharing programs often used for the sharing of child pornography. The agent was friended by Brown and was permitted by the defendant to access his files. On at least three occasions, the FBI agent accessed Brown’s files and downloaded files containing images and videos depicting child pornography.
The investigation revealed that Brown was accessing and sharing the files from an Internet address subscribed to him at his Scituate residence. In May 2010, FBI agents executed a court-authorized search of Brown’s residence and seized three laptop computers, 19 hard drives and portable digital storage memory cards, computer disks and thumb drives, a web camera, and a digital camera.
A forensic examination by the National Center for Missing & Exploited Children of the items seized revealed 2,297 images and 32 videos containing images of known children identified in 80 series depicting child pornography.
Brown, who is currently free on unsecured bond, is scheduled to be sentenced on October 23, 2013. At sentencing, Brown faces statutory penalties of a minimum mandatory five years and up to 20 years in federal prison followed by a mandatory five years of supervised release for distribution of child pornography; and up to 10 years in prison followed by a mandatory five years of supervised release for possession of child pornography.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.

Essex Man Pleads Guilty to Producing Child Pornography

BALTIMORE, MD—Robert Marzola, age 31, of Essex, Maryland, pleaded guilty today to producing child pornography.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, between December 2011 and July 2012, Marzola sexually abused a minor male at his home to produce images of himself and the minor engaged in sexually explicit conduct. Marzola saved the images on his laptop. Marzola told the boy not to tell anyone about their conduct, which Marzola described to the boy as a game.
In June 2012, Baltimore County police accessed a peer-to-peer network and saw that Marzola had files containing child pornography available for download. Police executed a search warrant at Marzola’s residence on July 19, 2012 and seized a camera, desktop computer, laptop computer, and an SD card. The images and videos that Marzola had previously produced of the boy were found on his laptop, along with 18 additional videos of children engaged in sexual conduct.
As part of his plea agreement, Marzola must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Marzola faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 in prison followed by up to lifetime of supervised release. U.S. District Judge Ellen L. Hollander has scheduled sentencing for November 7, 2013 at 10:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
This investigation was part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders, and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended the Baltimore HSI, FBI, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul Budlow, who prosecuted the case.

Dundalk Man Admits to Repeatedly Sexually Abusing a Child to Produce Pornography

BALTIMORE, MD—Larry James Kerfoot, age 38, of Dundalk, Maryland, pleaded guilty yesterday to sexually exploiting a minor on at least five occasions to produce images of child pornography.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, on May 30, 2012, an undercover Baltimore County detective downloaded a video depicting child pornography from an Internet file made available by Kerfoot from his Dundalk home. Law enforcement officers executed a search warrant on June 27, 2012 at his home and seized computers and digital media containing 19 videos and 80 images of child pornography that Kerfoot had received from the Internet.
Officers also seized a video he had produced of a 12-year old girl whom he had coerced to engage in sexually explicit conduct with him on at least five occasions.
As part of his plea agreement, Kerfoot must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Kerfoot and the government have agreed that if the court accepts the plea agreement, Kerfoot will be sentenced to between 25 and 30 years in prison followed by a lifetime of supervised release. U.S. District Judge Ellen L. Hollander has scheduled sentencing for November 7, 2013 at 2 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.

Twice-Convicted Sex Offender Sentenced to 15 Years for Receiving Child Pornography While on Federal Probation for Prior Sex Offense

GREENBELT, MD—Chief U.S. District Judge Deborah K. Chasanow sentenced Larry Poole, age 50, of Laurel, Maryland, today to 15 years in prison, followed by a lifetime of supervised release, for receipt of child pornography. Chief Judge Chasanow ordered that upon his release from prison, Poole must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Chief Richard McLaughlin of the Laurel Police Department; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to his plea agreement, on June 11, 2012 the Child Protective Services (CPS) received a report that Poole was sending text messages claiming to be molesting an unidentified 9-year-old girl. CPS referred the matter to Laurel Police Department personnel, who were not able to locate any child in Poole’s neighborhood matching the description used by Poole in his texts.
The Laurel Police Department subsequently learned that Poole was on federal probation and was registered as a sex offender based on two prior convictions—in 2003, for child abuse, in Baltimore County Circuit Court; and in 2006, for attempting to entice a minor to engage in sex and possession of child pornography, in federal court for the District of Columbia.
Laurel police alerted Poole’s federal probation officer, who made a surprise visit to Poole’s home on June 25, 2012. Poole consented to a preview of his cell phone, and the probation officer discovered videos and images of child pornography. Poole admitted that an individual brought child pornography to Poole’s home the previous day on a thumb drive or SD card and helped Poole load pornographic images of girls under 14 years old onto Poole’s computer and cell phone.
Laurel police and the FBI executed a search warrant, seized Poole’s cell phone and computer, and discovered approximately six videos and 120 images of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the Laurel Police Department and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.

Peach Springs Man Sentenced to 15 Years in Prison for Sexual Abuse of a Minor

PHOENIX—On July 22, 2013, Terry Harris Lee, 66, of Peach Springs, Arizona, an enrolled member of the Hualapai Nation Indian Tribe, was sentenced by U.S. District Judge David G. Campbell to 180 months in federal prison, followed by a term of lifetime supervised release. Lee pleaded guilty on May 2, 2013, to sexual abuse of a minor.
According to the plea agreement, on March 18, 2012, the 12-year-old victim was having a sleepover with a friend at Lee’s residence located on the Hualapai Nation Indian Reservation. Lee entered the bedroom where the victim was staying and sexually abused the victim.
The investigation in this case was conducted by the Hualapai Nation Police Department and the Federal Bureau of Investigation. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.

Federal Judge Finds Tuscaloosa County Man Guilty of Sexual Exploitation of a Child and Possessing Child Pornography

TUSCALOOSA—A federal judge today found a Tuscaloosa County man guilty of sexually exploiting a child and possessing child pornography, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein, Jr., and Tuscaloosa County Sheriff Billy Sharp.
U.S. District Judge L. Scott Coogler found Murry Malone Bailey, 63, guilty on four counts of sexual exploitation of a child and one count of possessing child pornography. The case was tried without a jury before Judge Coogler at the request of the defense.
Evidence at trial showed that on four occasions Bailey induced the child victim, who was 15 years old, to engage in sexually explicit conduct so he could produce video images. For example, the child victim testified about how Bailey coerced and induced her into performing the sexual conduct in a specific room of his home, and the evidence showed how the defendant mounted a camera to record that conduct. Other evidence showed Bailey making sexually explicit comments about what sexual acts he intended to do to the child victim.
No sentencing date has been set.
The maximum penalty for sexually exploiting a child is 30 years in prison and a $250,000 fine, for each count, and carries a statutory minimum penalty of 15 years in prison. The maximum penalty for possessing child pornography is 10 years in prison and a $250,000 fine.
The Tuscaloosa Sheriff’s Office, the Tuscaloosa Police Department, and the FBI investigated the case. Assistant U.S. Attorneys Daniel Fortune and Amanda Wick prosecuted the case.