District of Rhode Island
Press releases recorded for this federal judicial district.
Woonsocket Resident Sentenced for Possessing Child PornographyRead the Press Release
PROVIDENCE - Jose Marquez Escarcega, 29, of Woonsocket, today was sentenced yesterday to 60 months in federal prison for possession of child pornography, announced Acting United States Attorney Stephen G. Dambruch; Rhode Island State Police Superintendent Ann C Assumpico; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Escarcega to serve 20 years supervised release upon completion of his term of incarceration. Escarcega pleaded guilty on October 31, 2016, to one count of possession of child pornography, as charged in a federal indictment returned on December 3, 2015.
According to information presented to the court, in July 2014, the National Center for Missing and Exploited Children notified the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force that someone at Escarcega’s residence downloaded child pornography. Based on information developed during a subsequent investigation by the ICAC Task Force and HSI, a court authorized search was executed on October 2, 2014, at Escarcega’s residence.
A forensic analysis of a computer owned by Escarcega and seized by investigators revealed approximately 450 images and 40 videos of child pornography. Additionally, investigators recovered evidence that Escarcega had contacted and paid an individual in the Philippines to provide him with a live video feed as a prepubescent female was molested.
Assistant U.S. Attorney Terrence P. Donnelly prosecuted the case.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Two Indicted for Allegedly Trafficking 5 Kilos of CocaineRead the Press Release
PROVIDENCE – A federal grand jury in Providence on Thursday returned a two-count indictment charging Willy D. Espinal, 32, and Laura G. Martinez, 23, of Providence, with trafficking 5 kilograms of cocaine worth an estimated $150,000, announced Acting United States Attorney Stephen G. Dambruch and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
Rhode Island State Police arrested Espinal and Martinez on February 21, 2017, after troopers allegedly discovered 5 kilos of cocaine hidden inside an electronically controlled “hide” below a rear passenger compartment of a vehicle operated by Espinal. Troopers were alerted to the alleged presence of narcotics inside the vehicle by a certified narcotics detection K-9, after a trooper discovered that the vehicle had been altered consistent with the construction of a “hide.” The vehicle, in which Martinez was a passenger, was stopped on Rte. 95 in West Warwick for a minor traffic violation.
Espinal and Martinez, first ordered held on Rhode Island state charges brought in this matter, have been detained in federal custody since their initial appearance in federal court on April 5, 2017.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
Homeland Security Investigations assisted Rhode Island State Police in bringing this matter to the U.S. District Court for prosecution.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Attleboro, Mass., Resident Detained on Charges of Attempted Enticement of a Minor, Child Pornography ChargesRead the Press Release
PROVIDENCE – U.S. District Court Magistrate Patricia A. Sullivan today ordered Richard F. Woodhead, 54, of South Attleboro, Mass., detained in federal custody during an initial appearance on a criminal complaint charging him with attempted enticement of a minor, attempt to receive child pornography and possession of child pornography.
Woodhead was arrested earlier today by Homeland Security Investigation agents and members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force following a court authorized search of his residence.
Woodward’s arrest and initial appearance are announced by Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
This matter remains under investigation by the Rhode Island State Police ICAC Task Force, Homeland Security Investigations and the United States Attorney’s Office.
The court scheduled a bail review in this matter to be heard on April 12, 2016.
This case is being prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
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RI DLT Employee Sentenced for Theft of Government Funds, Computer FraudRead the Press Release
PROVIDENCE, R.I. – Ambulai R. Sheku, 37, of Providence, a former Senior Employment Interviewer with the Rhode Island Department of Labor and Training (DLT), today was sentenced to 21 months in federal prison for conspiring to commit mail fraud, theft of government funds and accessing a protected computer to commit fraud.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Sheku to serve 3 years supervised release upon completion of his prison term and to pay restitution in the amount of $486,366.
Sheku’s sentence is announced by Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Michael C. Mikulka, Special Agent in Charge of the New York Region of the Department of Labor - Office of Labor Racketeering and Fraud Investigations.
At the time of his guilty plea, Sheku admitted that between June 2009 and February 2015, he used his authorized access to DLT computers and computer files to obtain unemployment benefits for himself and others to which they were not entitled. As part of the scheme Sheku changed the mailing addresses of legitimate unemployment insurance beneficiaries, thus causing banks to mail unemployment insurance benefits to individuals not entitled to receive them; without authorization, extended the expiration of benefits for members of the conspiracy; caused fraudulent claims, including claims by individuals who were employed and thus ineligible for unemployment benefits, to be approved and dispersed; increased the balance of unemployment insurance benefits; and fraudulently removed blocks or “stops” on benefit payments, thus allowing coconspirators to continue receiving benefits to which they were not entitled.
The scheme resulted in a loss to the Rhode Island Department of Labor and Training of approximately $508,691, of which approximately $350,606 were federal funds.
The matter was investigated by the United States Attorney’s Office, Rhode Island State Police and the U.S. Department of Labor, with the assistance of the Rhode Island Department of Labor and Training and the U.S. Postal Inspection Service.
Assistant U.S. Attorney Terrence P. Donnelly prosecuted the case.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Former Police Officer, Police Union President Arraigned on Fraud ChargeRead the Press Release
PROVIDENCE – Christopher Hayes, 49, of Middletown, R.I., a former Newport, R.I., Police Department Sergeant and former President of the Fraternal Order of Police (FOP), Newport Lodge No. 8, made an initial appearance in U.S. District Court in Providence today on an information charging him with wire fraud. A not guilty plea was entered during his initial appearance and arraignment before U.S. District Court Magistrate Judge Lincoln D. Almond. Hayes was released on $10,000 unsecured bond.
It is alleged in court documents that between August 2009 and December 2014, Hayes used an FOP debit card to pay for his own personal expenses; wrote checks payable to himself from the FOP bank account; withdrew cash from the FOP bank account for personal use; and made online payments to his personal credit card from the FOP bank account. It is alleged that Hayes fraudulently converted approximately $71,523 in FOP funds for his own personal use.
Hayes’ initial appearance and arraignment are announced by the United States Attorney’s Office for the District of Rhode Island; U.S. Department of Labor – Office of Inspector General and Office of Labor Management Standards; and the Rhode Island State Police.
An information and plea agreement in this matter were filed with the U.S. District Court on March 20, 2017.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Former Finance Director Pleads Guilty to EmbezzlementRead the Press Release
PROVIDENCE – Charles F. Denno, 66, of East Providence, a former finance director for the Providence Plan, pleaded guilty in federal court today to fraud, admitting to the court that he devised and executed a scheme in which he fraudulently converted $742,190.69 of Providence Plan funds for his own use.
The Providence Plan is a non-profit educational entity which receives federal, state and private grant funds, including funds from the United States Department of Education and the Bloomberg Family Foundation. These grant funds are to be used to support educational and other programs for adults and children in Rhode Island. Annually, the federal grant funds awarded to the Providence Plan totaled in excess of four million dollars.
Denno’s guilty plea to one count of wire fraud is announced by Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; Brian Hickey, Special Agent in Charge of the U.S. Department of Education Office of Inspector General; and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
Appearing before U.S. District Court Chief William E. Smith, Denno admitted to the court that from November 2012 through July 2016, that he used his authority to cause the U.S. Department of Education and the Bloomberg Family foundation to deposit funds into Providence Plan bank accounts, and then fraudulently converted funds to his own accounts and personal use. Denno admitted to the court that he fraudulently prepared and issued Providence Plan checks made payable to CMG Enterprises, an entity he owned. The payments issued to CMG and deposited into a CMG bank account were not authorized and contained a forgery of the authorized check signing official at the Providence Plan. Denno subsequently made multiple withdrawals from the CMG bank account in various forms, including credit card payments, check payments and ATM cash withdrawals at Twin River Casino.
Denno is scheduled to be sentenced on June 23, 2017. Wire fraud is punishable by statutory penalties of up to 20 years imprisonment; 3 years supervised; and a fine of up to $250,000.
The matter, being prosecuted by Assistant U.S. Attorney John P. McAdams, was investigated by the Rhode Island State Police Gaming Enforcement Unit, the U.S. Department of Education Office of Inspector General and the FBI.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Financial Advisor Sentenced for Operating $21M Ponzi Scheme, Stealing Investors' Money, Tax FraudRead the Press Release
PROVIDENCE, R.I. – Patrick E. Churchville, 48, owner and president of ClearPath Wealth Management, LLC, formerly located in Providence and Barrington R.I., was sentenced today to 84 months in federal prison for orchestrating a $21 million dollar Ponzi scheme that deceived more than 110 investors; stealing $2.5 million dollars of investors’ funds to purchase a waterfront home; and failing to pay more than $820,000 in personal federal income taxes.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Churchville to serve 3 years supervised release and to perform 2,000 hours of community service upon completion of his prison term. Churchville pleaded guilty on August 4, 2016, to five counts of wire fraud and one count of tax fraud.
Churchville’s sentence is announced by Acting United States Attorney Stephen G. Dambruch; Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI; Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation; and Shelly A. Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division.
An investigation by the FBI, IRS Criminal Investigation, U.S. Postal Inspection Service and the United States Attorney’s Office determined that from the spring of 2008 through October 2011, Churchville and ClearPath, on behalf of their client investors, invested approximately $18 million dollars in JER Receivables, an entity incorporated in Maryland. At the time of his guilty plea, Churchville admitted to the court that in June 2010, he became aware that the investments with JER were no longer producing returns and that ClearPath had been subjected to fraudulent and misleading representations by the principals of JER. He failed to notify his client investors that he had lost millions of dollars of invested funds.
Churchville admitted that in order to hide the fact that he had lost millions of dollars of client investor funds through his dealings with JER Receivables, and to continue to operate his business and reap his investment fees, he misappropriated approximately $21 million dollars of investment money. Churchville admitted that he misused investor money already under his control and obtained new investor funds. He used this money to pay back the JER investors and told them, falsely, that the money was the return on their investments. Churchville admitted to induce new investments to carry out the schemes, he lied and told investors that ClearPath’s previous investments with JER Receivables had been successful and produced high rates of return.
Additionally, the investigation determined that in 2011, Churchville created a scheme to obtain $2.5 million dollars, using investors’ funds as collateral without their knowledge, to purchase a personal residence in Barrington. Churchville failed to report the $2.5 million dollars as income on his personal tax returns, resulting in a loss to the IRS of $820,528.
Churchville, who has been in court-ordered home detention with GPS electronic monitoring since the date of his guilty plea, was ordered by Chief Judge William E. Smith to self-surrender to begin serving his prison term by April 10, 2017.
A Restitution Order will be issued by the Court at a later date.
The case was prosecuted by Assistant U.S. Attorney Dulce Donovan.
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Opioid & Heroin Addiction & Prevention Awareness Program Spring Schedule Set to LaunchRead the Press Release
PROVIDENCE – The United States Attorney’s Office announced today the launch of a busy Spring schedule of in-school presentations and community forums to address the growing epidemic of opioid and heroin addiction in Rhode Island, and the availability of prevention and treatment resources across the state.
Since September, the United States Attorney’s Office, in partnership with substance abuse prevention coalitions and student assistance counselors across Rhode Island, has participated in opioid and heroin addiction and prevention awareness community forums in Providence, South Kingstown, North Kingstown, Middletown, Woonsocket, Bristol, Cranston and Barrington, and in-school student programs in Providence, Portsmouth, Johnston, North Kingstown, Central Falls, North Providence, South Kingstown and Barrington.
On Thursday, March 16, the entire student body at Rogers High School in Newport will participate in a discussion about choices; view a screening of the powerful documentary Chasing the Dragon - an unscripted and real-life look at the devastation of opioid and heroin addiction; the personal story of a parent, Deborah Parente, who lost her only child to opioid and heroin addiction; and a presentation by a student assistance counselor about important information and resources available to students in-school and in the community.
Similar in-school programs have been calendared for students at Woonsocket High School on March 22, at Westerly High School on March 30, at Central Falls High School on April 6 and 11, at Mt. Hope High School in Bristol on April 13, and at Cumberland High School on May 16. Additional programs are being planned.
Community forums have been scheduled in Central Falls on March 22, and in Warwick on April 26, where, in addition to a discussion about the impact the epidemic is having across the state, a screening of Chasing the Dragon, and the personal stories of families impacted by addiction, a panel of medical, treatment, education, and law enforcement experts will engage in a discussion about the hard-truths of addiction and the importance of addiction treatment and prevention.
For program information or to schedule an opioid and heroin addiction and prevention awareness program, please contact the Substance Abuse and Prevention Coalition director in your community; Elizabeth Farrer at the R.I. Department of Behavioral Healthcare, Developmental Disabilities and Hospitals at (401) 462-0644; or Jim Martin, Public Information Officer and Community Outreach Specialist at the United States Attorney’s Office at (401) 709-5357.
For information about in-school awareness programs, please contact a student assistance counselor in your community; Sarah Dinklage, Executive Director of R.I. Student Assistance Services at (401) 732-8680; or Jim Martin, Public Information Officer and Community Outreach Specialist at the United States Attorney’s Office at (401) 709-5357.
Assistance and information about treatment options for opioid addiction is available from a licensed counselor 24-hours a day, 7 days a week by calling Prevent Overdose RI at 942-STOP (942-7867).
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First Assistant U.S. Attorney Stephen G. Dambruch Named Acting United States AttorneyRead the Press Release
PROVIDENCE - Pursuant to the Vacancies Reform Act, with the departure of former United States Attorney Peter F. Neronha, First Assistant United States Attorney Stephen G. Dambruch has been named Acting United States Attorney for the District of Rhode Island. In his capacity as Acting United States Attorney, Mr. Dambruch serves as the chief Federal law enforcement officer for the District of Rhode Island.
Mr. Dambruch, named First Assistant United States Attorney in January 2014, was appointed as an Assistant United States Attorney in January 2004 and Criminal Division Chief in February 2007. As an Assistant United States Attorney, Mr. Dambruch worked on, among other things, a number of significant narcotics and public corruption matters.
Prior to his tenure with the United States Attorney’s Office, Mr. Dambruch served as a state prosecutor with the Rhode Island Department of Attorney General for over sixteen years, including appointments as Chief of the Narcotics Prosecution Unit, Chief Prosecutor for Kent, Newport and Washington Counties, and Deputy Chief of the Criminal Division.
Mr. Dambruch is a 1982 graduate of Providence College and received his law degree from Boston College Law School in 1985.
Mr. Dambruch announced today that the leadership team in the United States Attorney’s Office will remain the same.
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United States Attorney Peter F. Neronha Stepping DownRead the Press Release
PROVIDENCE – At the direction of the President, United States Attorney Peter F. Neronha today announced his resignation, effective at midnight. Mr. Neronha joins all of the other United States Attorneys appointed by President Obama in stepping down today.
Mr. Neronha, the 39th person to be appointed United States Attorney for the District of Rhode Island, began a career of public service in 1996 as a Special Assistant Attorney General in the Rhode Island Department of the Attorney General. In 2002, Mr. Neronha joined the United States Attorney’s Office as an Assistant United States Attorney. Since becoming United States Attorney, Mr. Neronha has twice been appointed to terms on the Attorney General’s Advisory Committee, by Attorney General Eric Holder in 2009, and by Attorney General Loretta Lynch in 2016. The AGAC regularly meets with and advises the Attorney General on policy, management and operational issues impacting all 94 U.S. Attorney’s offices nationwide.
A fourth generation native of Jamestown, Mr. Neronha attended North Kingstown High School, and in 1985 graduated summa cum laude from Boston College. He attended Boston College Law School, where he was a member of the Boston College Law Review. Upon graduation, he joined the Boston, Massachusetts law firm, Goodwin Procter, LLP.
United States Attorney Peter F. Neronha released the following statement:
“It has been the honor and privilege of my professional life to serve the people of Rhode Island as United States Attorney for nearly eight years. When I began my career in public service as a state prosecutor over twenty years ago, I never could have anticipated what the future would hold. I am incredibly grateful to President Obama, and to Senators Reed and Whitehouse, who recommended me to the President, for their confidence in me.
“I have met and worked with so many great and talented people along the way, both in law enforcement and in the community, and we have done so much together. We have faced so many challenges, from the steady stream of public corruption cases to the scourge of human trafficking, particularly child sex trafficking. International drug cartels and prescription pill misuse have caused our ongoing opioid and heroin public health crisis, threatening the lives of children and adults alike. Violent crime, and a criminal justice system not best equipped to deal with it, has challenged us to rethink our mission as prosecutors and law enforcement – to understand that prevention and effective re-entry for those who have paid their debt to society have their place alongside smart enforcement.
“Whatever we have accomplished, none of it would have been possible without the dedication and outstanding ability of the men and women of the Office I have been so fortunate to lead. Some have been my colleagues for nearly fifteen years, and I will miss them all, very, very much. Given the nature of this job there is never a perfect time to step away. With enormous gratitude toward those who have been so supportive during my tenure, my family and I look forward to the next chapter of our lives.”
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Two Sentenced in Multi-Million Dollar ID Theft, Tax Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – Two Central Falls women were sentenced to 3 years in federal prison today for their roles in a long-running scheme to use the stolen identities of more than 400 individuals on fraudulent tax returns resulting in the theft of more than $2.6 million in fraudulent tax refunds.
Erika Tomasino, 44, was sentenced by U.S. District Court Chief Judge William E. Smith to 36 months in federal prison, having been convicted of one count of conspiracy, one count of theft of government property, three counts of mail fraud, three counts of money laundering and one count of aggravated identity theft. Tomasino was also ordered to pay $1,817,431 in restitution. Tomasino was the bookkeeper and secretary of Juan Vasquez, 53, of Providence, a businessman and the mastermind behind the long-running scheme.
Doris Morel, 44, of Central Falls, a full-time cashier at the former Dominican Supermarket in Pawtucket, the hub of the scheme, was also sentenced today to 36 months in federal prison, having been convicted of one count of conspiracy, one count of theft of government property, four counts of money laundering and four counts of aggravated identity theft. Morel was ordered to pay $1,225,580 in restitution.
On September 27, 2016, a federal court jury convicted the two women after a two-week trial.
The sentences are announced by United States Attorney Peter F. Neronha; Joel P. Garland, Special Agent in Charge, Internal Revenue Service Criminal Investigation; Shelly A. Binkowski, Inspector in Charge of the United States Postal Inspection Service, Boston Division; Brian Deck, Resident Agent in Charge of the United States Secret Service; and Pawtucket Police Chief Paul King.
In November 2016, Chief Judge William E. Smith sentenced Juan Vasquez to 6 years in federal prison to be followed by 3 years supervised release. Vasquez ran the scheme out of his business, the former Dominican Supermarket. Vasquez was ordered to pay restitution to the IRS in the amount of $2,682,042.88. Vasquez pleaded guilty on August 19, 2016, to one count of conspiracy and one count of aggravated identity theft.
Also in November 2016, co-defendant Belkis Vasquez, 50, of Central Falls, was sentenced to serve 3 years probation, the first 8 months in home detention with GPS electronic monitoring, and was ordered to perform 200 hours of community service. Belkis Vasquez was ordered to pay restitution to the IRS in the amount of $325,490. Belkis Vasquez pleaded guilty on August 17, 2016, to one count of conspiracy.
According to the government’s evidence, for nearly four years, beginning in January 2010, the defendants participated in a scheme in which they used stolen personal identifying information of more than 400 individuals, most of whom are residents of Puerto Rico, to file fraudulent tax returns. Fraudulent treasury checks were mailed to various locations in Rhode Island, Massachusetts and New York, and later deposited by the co-conspirators into 26 different bank accounts. The bank accounts were controlled by the co-conspirators or other individuals affiliated with the former Dominican Supermarket.
The government’s evidence showed that the defendants and their co-conspirators withdrew the proceeds of the checks, caused others to withdraw some of the proceeds, transferred the proceeds between accounts, and spent the funds on personal expenses. Additionally, more than $235,000 of fraudulently obtained funds were transferred to a bank in the Dominican Republic.
The cases were prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and John P. McAdams.
The matter was investigated by Internal Revenue Service - Criminal Investigation, with the assistance of the United States Secret Service, United States Postal Inspection Service and the Pawtucket Police Department.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Mass. Resident Indicted on Sex Trafficking ChargesRead the Press Release
PROVIDENCE – A federal grand jury in Providence has returned a four-count indictment charging Andy Joseph, a/k/a Andrew J. Joseph, 24, of Brockton, Mass., with allegedly trafficking a 15-year-old Rhode Island female across state lines for the purpose of criminal sexual activity.
The indictment, returned on Thursday and announced today by United States Attorney Peter F. Neronha; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England; and Pawtucket Police Chief Paul King, charges Joseph with one count each of sex trafficking a child and transportation of minor with the intent to engage in criminal sexual activity, and two counts of traveling in interstate commerce with intent to engage in criminal sexual activity.
According to court documents, it is alleged that on June 15, 2016, Joseph, who had been communicating with the 15-year-old via an Internet web site, met with the teenager in Rhode Island and drove her to a hotel in Seekonk, Mass. It is alleged that at the hotel Joseph photographed the teenager and posted photographs of her in advertisements on Backpage.com, offering the teenager for commercial sexual activity.
It is alleged that between June 15 and August 13, 2016, Joseph arranged for sexual encounters involving the 15-year-old. It is alleged that following each commercial sexual encounter, most or all of the money was turned over to Joseph, at his insistence.
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.
Sex trafficking a child and transportation of minor with the intent to engage in criminal sexual activity are punishable by statutory penalties of a minimum of 10 years and up to life imprisonment to be followed by up to lifetime supervised release; traveling in interstate commerce with intent to engage in criminal sexual activity is punishable by up to 30 years imprisonment to be followed by up to lifetime supervised release.
Joseph has been detained in federal custody since his arrest on December 1, 2016, by HSI agents and Pawtucket Police.
The case is being prosecuted by Assistant U.S. Attorneys Terrence P. Donnelly and John P. McAdams. The matter was investigated by Homeland Security Investigations and Pawtucket Police.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Former Rhode House Finance Chairman Raymond Gallison Pleads Guilty to Federal Fraud, Aggravated Identity Theft, Tax ChargesRead the Press Release
PROVIDENCE – Former Rhode Island House Finance Chairman Raymond E. Gallison, Jr., 64, of Bristol, R.I., pleaded guilty today in U.S. District Court in Providence to federal mail fraud, wire fraud, aggravated identity theft and tax charges, announced United States Attorney Peter F. Neronha and Rhode Island Attorney General Peter F. Kilmartin.
Appearing before U.S. District Court Chief Judge William E. Smith, Gallison admitted to orchestrating wide-ranging fraudulent and deceptive schemes to steal private money and hide his misuse of public money. Gallison admitted to the theft of funds from the estate of a deceased individual to which he was appointed executor; theft of funds from a Special Needs Trust established to protect the long-term welfare of a disabled individual to which he was appointed trustee; providing false information on tax documents, including vastly inflating the number of students assisted by a non-profit organization funded by public money while failing to disclose amounts paid by that organization to him; and failure to pay taxes on income derived from his criminal actions.
Gallison pleaded guilty to four (4) counts of mail fraud; one (1) count of wire fraud; one (1) count of aggravated identity theft; one (1) count of aiding the filing of a false tax document; and two (2) counts of filing a false tax return.
At the time of his guilty plea, Gallison admitted to the court that:
As executor of an estate of an individual from Barrington, R.I., who passed away in February 2012, he devised and executed various schemes to steal or transfer to his own name and bank accounts, cash, checks, stocks and real property belonging to the deceased person and/or his estate, valued at a total of $677,454,10. Gallison will admit that he fraudulently used the name and social security number of the deceased person to execute a scheme to cause the liquidation of certain stocks belonging to the deceased person;
He caused the filing of a false tax document on behalf of Alternative Education Programming (AEP), a non-profit organization which provided educational programs to students who may need assistance with course work, and/or minority and/or disadvantaged students who may need financial or other assistance to gain an education, and of which Gallison was listed as Assistant Director. The tax document listed that $77,957 in tuition and related fees and expenses were paid for 47 students from July 1, 2012, through June 30, 2013. In fact, on behalf of AEP, Gallison paid only $3,137.29 to assist 2 students during that year and paid approximately $64,575 to himself and another person in wages and consulting fees for no work undertaken on AEP’s behalf;
As trustee for a disabled person’s Special Needs Trust, he defrauded the Trust by writing a check from the Trust account for $8,900, which he deposited into an AEP account. Gallison then wrote a check for $8,800 from the AEP account to pay an outstanding bill at the Community College of Rhode Island; and
He failed to claim a total of $622,286.17 in income on joint IRS tax returns for tax years 2012 and 2013, and, as a result of his relevant conduct from 2012-2015, Gallison failed to pay a total of $226,332.31 in taxes.
Gallison is scheduled to be sentenced on June 16, 2017. Based on statutory penalties, Gallison will serve, at a minimum, two years in federal prison.
During the course of the investigation law enforcement recovered more than $515,000 in assets stolen by the defendant from the estate for which he served as executor. Prior to the start of today’s change of plea hearing, the defendant provided to the court a check in the amount of $162,063.95, reflecting the balance of restitution due to the estate.
Restitution due to the IRS in the amount of $226,332.31 has not been paid.
Joining United States Attorney Peter F. Neronha and Rhode Island Attorney General Peter F. Kilmartin in announcing Gallison’ s guilty plea is Harold H. Shaw, Special Agent in Charge of the FBI Boston Division; Joel P. Garland, Special Agent in Charge, Internal Revenue Service Criminal Investigation; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
The matter was investigated by the United States Attorney’s Office, FBI, Internal Revenue Service Criminal Investigation, Rhode Island Department of the Attorney General, and the Rhode Island State Police.
The case is being prosecuted in federal court by Assistant U.S. Attorneys Dulce Donovan and William J. Ferland, and Special Assistant U.S. Attorney James R. Baum of the Rhode Island Department of the Attorney General.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Pawtucket Resident Sentenced for Operating Large-Scale Indoor Marijuana Growing OperationRead the Press Release
PROVIDENCE – Michael Watkins 35, of Pawtucket, was sentenced today to 60 months in federal prison for operating a large-scale marijuana growing operation inside a former mill building in Providence in August 2015, announced United States Attorney Peter F. Neronha and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
The sophisticated growing operation was discovered during an ongoing FBI Safe Streets Task Force investigation into multiple large-scale marijuana growing operations inside a former mill building at 725 Branch Avenue.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Watkins to serve 3 years supervised release upon completion of his term of incarceration. Watkins pleaded guilty on January 27, 2017, to conspiracy to manufacture 100 or more marijuana plants and manufacturing more than 100 marijuana plants.
According to court documents and information presented to the court, on August 12, 2015, the FBI Safe Street Task Force, with the assistance of DEA and the Rhode Island State Police, executed multiple court authorized search warrants in and around the Branch Avenue former mill building. Among the discoveries, law enforcement discovered and seized from inside Unit 133, 157 adult marijuana plants and a large amount of equipment used to produce marijuana, using hydroponic techniques.
The investigation determined that the marijuana growing equipment and plants discovered inside Unit 133 belonged to Michael Watkins.
Watkins was arrested on a federal criminal complaint on January 11, 2016. A federal indictment was returned on February 16, 2016, charging Watkins with conspiracy to manufacture 100 or more marijuana plants and manufacturing more than 100 marijuana plants.
The case was prosecuted by Assistant U.S. Attorney William J. Ferland.
United States Attorney Peter F. Neronha acknowledges and thanks the Providence Fire Department Arson Squad for their assistance in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Warwick Resident Sentenced for Possessing, Distributing Child PornographyRead the Press Release
PROVIDENCE, R.I. – Sami-Joe Daou, 28, of Warwick, was sentenced today to 70 months in prison for possessing and distributing child pornography. A joint federal, state and local law enforcement investigation determined that Daou possessed images of child pornography, some of which he shared via Facebook.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Daou to serve 10 years supervised release upon completion of his prison term and to pay $18,308 restitution to the victims in this matter. Daou pleaded guilty on November 3, 2016, to one count of possession of visual depiction of a minor engaged in sexual explicit conduct and one count of distribution of visual depiction of a minor engaged in sexual explicit conduct.
Daou’s sentence is announced United States Attorney Peter F. Neronha; Harold H. Shaw, Special Agent in Charge of the FBI Boston Division; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Cranston Police Chief Colonel Michael J. Winquist.
According to information presented to the court, in March 2015, the defendant stored on his computer sexually explicit images involving a pre-teenage female, some of which he shared on Facebook. Additionally, in July 2015, the defendant stored on his computer sexually explicit video files depicting sexual contact he had with a 17-year-old female.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by the Rhode Island State Police Computer Crimes Unit, the Cranston Police Department, and the FBI.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Pawtucket Resident Pleads Guilty to Firearm ChargeRead the Press Release
PROVIDENCE, R.I. – Justice Reyes, 20, of Pawtucket, pleaded guilty in federal court in Providence today to possession of a firearm with an obliterated serial number. Reyes was arrested outside his Pawtucket residence on April 1, 2016, moments after he sold the firearm to an undercover federal law enforcement agent.
Reyes was serving a state court imposed sentence of home confinement at the time he sold the firearm to an undercover ATF agent.
Reye’s guilty plea before U.S. District Court Chief Judge William E. Smith is announced by United States Attorney Peter F. Neronha and Mickey Leadingham, Special Agent in Charge of the Boston Field Division of ATF.
According to information presented to the court, on April 1, 2016, an undercover ATF agent bought a .22 caliber semi-automatic rifle from Reyes for $350. Reyes specified that the serial number had been obliterated, and that he could get the undercover and the undercover’s associates additional guns with obliterated serial numbers.
According to Rhode Island state court records, Reyes was sentenced on March 17, 2016, to one year home confinement for violating a suspended sentence imposed on January 29, 2016, having pleaded nolo contendre to a charge of simple assault domestic. Reyes began serving his home confinement sentence two weeks prior to selling the firearm to the ATF agent.
Reyes, who has been detained since his arrest on April 1, 2016, is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on June 5, 2017. Possession of a firearm with an obliterated serial number is punishable by a statutory sentence of up to 10 years in federal prison, 3 years supervised release and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by ATF and the Rhode Island AFT Task Force, with the assistance of the Pawtucket Police Department.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Pawtucket Drug Trafficker Sentenced to PrisonRead the Press Release
PROVIDENCE – Jesus Garo, 28, of Pawtucket, today was sentenced to 57 months in federal prison for trafficking cocaine and crack cocaine. According to information presented to the court, prior to this most recent drug trafficking conviction in federal court, Garo was previously convicted in Rhode Island state court on drug related charges on four occasions, including twice for drug trafficking, and had been shot and wounded at least twice.
Garo’s most recent arrest in December 2015, followed an investigation by Providence Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) into his continued drug trafficking activities.
The sentence, imposed by U.S. District Court Judge John J. McConnell, Jr., is announced by United States Attorney Peter F. Neronha, Providence Police Chief Colonel Hugh T. Clements, Jr., and Mickey Leadingham, Special Agent in Charge of the Boston Field Division of ATF.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Garo to serve 3 years supervised release upon completion of his prison term. Garo pleaded guilty on December 16, 2016, to possession with the intent to distribute crack cocaine and possession with the intent to distribute cocaine.
According to information presented to the court, during an investigation into Garo’s drug trafficking activities in November and December 2015, on at least two occasions, Garo sold crack cocaine to a person assisting law enforcement with their investigation. On December 16, 2015, Garo was approached outside of his residence by law enforcement, who seized 14 small bags of crack cocaine and three small bags of cocaine from Garo’s person. A court authorized search of Garo’s residence resulted in the seizure of additional quantities of cocaine and crack cocaine. In total, law enforcement seized more than 15 grams of crack cocaine, 9 grams of cocaine, $1,571 in cash, and various items used in the packaging and distribution of drugs.
Garo has been detained since his arrest on December 16, 2015.
The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Two Indicted for Allegedly Trafficking Fentanyl Laced HeroinRead the Press Release
PROVIDENCE – A federal grand jury in Providence on Tuesday returned a two-count indictment charging a Providence couple with allegedly trafficking fentanyl laced heroin.
United States Attorney Peter F. Neronha, Michael J. Ferguson, Special Agent in Charge of DEA, Colonel Ann S. Assumpico, Superintendent of the Rhode Island State Police, and Warwick Police Chief Colonel Stephen M. McCartney announce the indictment of Agustin Acevedo, a/k/a Daniel Martinez Suazo, 49, and Dismery Uceta, 42, of Providence, each on one count of conspiracy to possess with intent to distribute 100 grams or more of heroin and one count of possession with the intent to distribute more than 100 grams of heroin.
According to court documents and information presented to the court, in March 2016, as part of an ongoing drug trafficking investigation by DEA agents in Washington, DC, information was developed and provided to DEA agents in Rhode Island that led investigators to believe that Acevedo may be involved in the trafficking of illicit drugs into Rhode Island.
As part of the investigation by Rhode Island DEA agents and the Rhode Island DEA Drug Task Force, agents determined that Acevedo frequently rented vehicles for short periods of time. They determined that on April 29, 2016, Acevedo allegedly rented a vehicle in Rhode Island and then late the same day he and Uceta travelled to the Bronx, New York in the rented vehicle. They returned to Rhode Island early the next day. As the vehicle was returning to Rhode Island, DEA agents, conducting surveillance of the vehicle, reported to Rhode Island State Police that the vehicle was allegedly traveling on Route 95 at speeds of approximately 80 mph.
According to court documents, a RI State Trooper stopped the vehicle on Route 95 between exits 5 and 6 for speeding. A speeding citation was issued to the driver, Agustin Acevedo. It is alleged that during the traffic stop, a RI State Trooper observed a brick-like object wrapped in a plastic bag in plain view in an opened handbag on the floor of the vehicle. The occupants consented to a search of the vehicle and Uceta to a search of the handbag. A RI State Police K-9 gave a positive alert to the area near where the handbag was located. A field test of the brick-like object tested positive for heroin. Acevedo and Uceta were detained by DEA agents who also responded to the traffic stop.
On May 3, 2016, a Warwick Police Department Detective received the kilogram of suspected heroin for further analysis. He later identified the left index finger impression of Acevedo on the outer side of the kilogram wrapping.
Forensic testing at the New England Regional Laboratory for DEA revealed that the kilogram of heroin was laced with fentanyl and dipyrone (an analgesic).
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.
Acevedo and Uceta have been detained in federal custody since their arrest and initial appearance in U.S. District Court in Providence on a federal criminal complaint charging them with possession with intent to distribute 100 grams or more of heroin and conspiracy to possess with intent to distribute 100 grams or more of heroin.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Nearly Six Kilos of Heroin Seized; Two DetainedRead the Press Release
PROVIDENCE – An investigation into the trafficking of heroin in Rhode Island has resulted in the seizure of nearly six (6) kilograms of heroin, allegedly brought to Rhode Island from New York, and the arrest of two individuals, announced United States Attorney Peter F. Neronha, Michael J. Ferguson, Special Agent in Charge of the DEA; Central Falls Police Chief Colonel James J. Mendonca; and Cranston Police Chief Colonel Michael J. Winquist.
On Tuesday, Yesid Antonio Simanca-Pena, 40, of Central Falls, and Luis Mercado, 45, address unknown, were ordered detained in federal custody by U.S. District Court Magistrate Judge Patricia A. Sullivan on federal criminal complaints charging each with conspiracy to possess with intent to distribute one kilogram or more of heroin and one count of possession with the intent to distribute 1kilogram or more of heroin.
It is alleged that prior to February 13, 2017, a person assisting DEA was in negotiations with Mercado and Simanca-Pena to be provided with five (5) kilograms of heroin. These negotiations led to a late afternoon meeting on Monday, February 13, at Simanca-Pena’s Central Falls residence. Shortly after the person assisting DEA arrived by vehicle at the residence, it is alleged that Simanca-Pena placed one (1) kilogram of heroin on the floor of the vehicle. Simanca-Pena was immediately taken into custody and the heroin was seized by DEA agents. Soon after, DEA, DEA Task Force agents, Central Falls Police and Cranston Police executed a court authorized search of Simanca-Pena’s residence where they arrested Mercado and seized in excess of an additional four (4) kilograms of heroin.
A federal criminal complaint 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.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Rhode Islanders Urged to Attend Opioid and Heroin Awareness Town Hall MeetingRead the Press Release
PROVIDENCE – In continuing partnership with substance abuse prevention coalitions and student assistance counselors across Rhode Island, United States Attorney Peter F. Neronha on Wednesday evening will moderate the ninth in a series of town hall meetings and community forums addressing the growing epidemic of opioid and heroin addiction in Rhode Island and elsewhere. Parents, students, teachers, school administrators, community leaders and residents from across Rhode Island are encouraged to join the discussion at Barrington High School, beginning at 7:00 p.m.
Wednesday’s town hall meeting will include an overview of the addiction problem in Rhode Island, a screening of the powerful documentary Chasing the Dragon - an unscripted and real-life look at the devastation of opioid and heroin addiction; the personal story of a parent, Deborah Parente, who lost her only child to opioid and heroin addiction; and a frank discussion about addiction and treatment, and the impact this epidemic is having in every Rhode Island community.
The open discussion will include experts from the medical, treatment, education, and law enforcement communities. Scheduled to participate in the discussion are Dr. James MacDonald, R.I. Department of Health; Michael Rizzi, treatment and behavioral healthcare expert; Barrington High School Student Assistance Counselor Joanne Royley; Barrington Police Chief John LaCross; Rhode Island Deputy Attorney General Gerald J. Coyne; and DEA Resident Agent in Charge Sam Masiello.
United States Attorney Peter F. Neronha commented, “Opioid/heroin addiction and overdose is the most serious non-national security related threat to public safety that I have seen in my tenure as United States Attorney. While strong law enforcement interdiction efforts remain critical, equally critical are effective and widely available prevention and treatment measures. By alerting students to the threat and talking to them about making smart choices, and by engaging the community at large in a discussion with experts in all three areas, it is my hope that we, in partnership with many, many others, can help make progress in dealing with this public health crisis.”
To date, community forums have been held in Providence, South Kingstown, North Kingstown, Middletown, Woonsocket, Bristol and Cranston. Students have participated in similar in-school opioid and heroin addiction awareness programs in Providence, Portsmouth, Johnston, North Kingstown, Central Falls, North Providence and South Kingstown. Community forums and school presentations are planned for other communities in Rhode Island as well.
For program information or to schedule an opioid and heroin addiction and prevention awareness program, please contact the Substance Abuse and Prevention Coalition director in your community; Elizabeth Farrer at the R.I. Department of Behavioral Healthcare, Developmental Disabilities and Hospitals at (401) 462-0644; or Jim Martin, Public Information Officer and Community Outreach Specialist at the United States Attorney’s Office at (401) 709-5357.
For information about in-school awareness programs, please contact a student assistance counselor in your community; Sarah Dinklage, Executive Director of R.I. Student Assistance Services; or Jim Martin, Public Information Officer and Community Outreach Specialist at the United States Attorney’s Office at (401) 709-5357.
Assistance and information about treatment options for opioid addiction is available from a licensed counselor 24-hours a day, 7 days a week by calling Prevent Overdose RI at 942-STOP (942-7867).
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Registered Sex Offender Pleads Guilty to Child Pornography ChargesRead the Press Release
PROVIDENCE – Ryan J. Lebrun, 23, of Pawtucket, pleaded guilty in U.S. District Court in Providence today to a three-count federal indictment charging him with possession and distribution of child pornography. According to court records, Lebrun, a registered sex offender, was previously convicted in Rhode Island state court in two unrelated child pornography cases. He faces between 15-40 years in federal prison when he is sentenced in May.
Appearing before U.S. District Judge John J. McConnell, Jr., Lebrun pleaded guilty to two counts of distribution of child pornography and one count of possession of child pornography.
Lebrun’s guilty plea is announced by United States Attorney Peter F. Neronha; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England; Harold H. Shaw, Special Agent in Charge of the FBI Boston Division; and Colonel Ann S. Assumpico, Superintendent of the Rhode Island State Police.
According to court records and information presented to the court, in June 2015, while conducting an investigation into the sharing of child pornography, German law enforcement accepted an online solicitation on a Peer to Peer (P2P) file sharing program from an individual later identified as Ryan Lebrun. German authorities were able to access Lebrun’s files and library from which they downloaded several files of child pornography.
In September 2015, HSI in Rhode Island was notified by HSI Cyber Crimes Center via Interpol, Wiesbaden, Germany, of Lebrun’s online activities. HSI agents in Rhode Island viewed Lebrun’s files and library, and identified approximately 21 images and 3 videos of child pornography.
In October 2015, it was learned that the FBI was also investigating Lebrun’s activities on the P2P file sharing program. The FBI also downloaded images of child pornography from Lebrun’s files and engaged in online chats with Lebrun.
Additionally, in October 2015, the Rhode Island State Police Internet Crimes Against Children (ICAC) task force received information from the National Center for Missing and Exploited Children regarding a Google email account that contained child pornography. The email account, which also contained an image of Lebrun, was determined by Rhode Island State Police to belong to Lebrun.
On November 9, 2015, HSI, FBI and a Rhode Island State Trooper assigned to the ICAC executed a court authorized search warrant at Lebrun’s Pawtucket residence. The search resulted in the seizure of, among other things, numerous electronic devices and digital storage cards. A forensic examination of the devices and storage cards identified more than 200 videos and 90 images of child pornography.
According to court records, Lebrun, a registered sex offender, was twice convicted in Rhode Island state court on child pornography charges. On April 16, 2011, Lebrun was arrested by the Warwick Police Department and charged with possession of child pornography. He pleaded guilty and on November 10, 2011, he was sentenced to 3 years of probation. On April 17, 2013, Lebrun was arrested by Rhode Island State Police and charged with possession and transfer of child pornography. He pleaded guilty and on November 20, 2013, was sentenced to 5 years of incarceration with 2 years to serve.
Lebrun, who is currently detained in federal custody, is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on May 8, 2017. At sentencing, Lebrun faces statutory penalties of 15-40 years in federal prison and between 5 years and lifetime supervised release for distribution of child pornography; and 10-20 years imprisonment and between 5 years and lifetime supervised release for possession of child pornography.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Former Porstmouth Resident Sentenced for Distribution of Child PornographyRead the Press Release
PROVIDENCE, R.I. – Adam C. Cobb, 48, formerly of Portsmouth, RI, was sentenced today in U.S. District Court in Providence to 5 years in federal prison for distributing child pornography. Cobb was arrested in April 2015, following an investigation by agents from Homeland Security Investigations (HSI) and members of the Rhode Island State Police Internet Crimes Against Children Task Force (RI ICAC).
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Cobb to serve 10 years supervised release upon completion of his prison term and to pay a fine of $25,000. Cobb pleaded guilty on February 24, 2016, to one count of distribution of child pornography.
Cobb’s sentence is announced by United States Attorney Peter F. Neronha; Matthew J. Etre, Special Agent in Charge of HSI for New England; and Colonel Ann S. Assumpico, Superintendent of the Rhode Island State Police.
According to court documents and information presented to the court, in January 2015, The National Center for Missing and Exploited Children reported to the RI ICAC that an individual in Rhode Island uploaded images of child pornography to Tumblr.com. The investigation determined that an Internet address at Adam Cobb’s then Portsmouth residence was the address used to upload the images.
On March 5, 2015, ICAC Task Force members and HSI agents, supported by Naval Criminal Investigative Service agents, executed a court-authorized search warrant at Cobb’s residence and seized various digital media, computers and cellular phones. Additionally, the next day, a cell phone was seized from Mr. Cobb by Customs and Border Patrol agents at the Dallas/Fort Worth International Airport as Mr. Cobb entered the United States, having traveled from Tokyo, Japan.
A forensic examination of the digital media seized resulted in the discovery of photos and videos of child pornography depicting two juvenile females. With the assistance of the Baltimore, Maryland Police Department and HSI offices in Baltimore and in London, England, the RI ICAC determined the identity of both females.
Adam Cobb, who was arrested on April 3, 2015, has been detained in federal custody since December 21, 2015, after the court revoked his release on $1,000,000 surety bond after he admitted to violating the court imposed terms of his pre-trial release.
The case was prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Westerly Resident Sentenced for Operating Butane Hash Oil LabRead the Press Release
PROVIDENCE, R.I. – Scott Slagel, 41, of Westerly, RI, was sentenced today by U.S. District Court Judge John J. McConnell, Jr., to three years probation for operating a butane hash oil lab in his Westerly residence. Slagel pleaded guilty on May 13, 2016, to endangering human life while illegally manufacturing a controlled substance.
In court filings and at today’s sentencing hearing, the government recommended a sentence of 27 months imprisonment, which falls within the sentencing guideline range in this matter of 24 to 30 months imprisonment.
According to court documents and information presented to the court, in the early morning hours of November 27, 2015, in the wake of a fire in a multi-unit apartment building on Apache Drive in Westerly, investigators discovered an active butane hash oil lab in the unit where the fire originated. After extinguishing the fire and securing the scene, investigators located a number of items related to a butane hash oil manufacturing laboratory, including marijuana plants, multiple cans of butane, glass tubes and a vacuum oven containing butane hash oil, commonly referred to as “shatter.”
At the time of his guilty plea, Slagel admitted to the court that he used the above-described items to manufacture butane hash oil, in what is known as the open-blast method - a dangerous and potentially explosive process.
In March 2016, in announcing federal criminal charges in four cases against five individuals all of whom, it is alleged, were involved in the operation of unrelated BHO labs in South Kingstown, Westerly, Providence, and West Warwick, including the lab discovered in Slagel’s residence, United States Attorney Peter F. Neronha said then, and reiterates now, “This activity poses an enormous threat to human life. Where BHO manufacturing is going on, no one is safe: not those involved in the illegal operation themselves; not those who happen to be living or visiting nearby; not first responders. The demand for BHO, whether for purported medical purposes or otherwise, cannot justify its production, given the magnitude of risk. Second, those who continue to engage in the production of BHO, notwithstanding what ought to be abundantly clear by now, will be the strong focus of our collective law enforcement efforts.”
This case was prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and Richard B. Myrus.
This matter was investigated by the Westerly Police Department, DEA and the Rhode Island State Fire Marshal’s Office.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Thai National Admits to Running Immigration Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – Nimon Naphaeng, 35, a native and citizen of Thailand, who resided in Wakefield, R.I., pleaded guilty in U.S. District Court in Providence yesterday to federal charges resulting from his running an immigration fraud scheme, which included the filing of false asylum applications on behalf of individuals who did not request nor authorize the applications.
Naphaeng pleaded guilty to seven (7) counts of mail fraud and two (2) counts of visa fraud, announced United States Attorney Peter F. Neronha and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England.
Appearing before U.S. District Court Chief Judge William E. Smith, Naphaeng admitted to the court that from August 2014 through December 2015, for a fee of between approximately $1,500 and $2,500 per applicant, he would file false asylum applications thereby securing the right of the applicant to remain in the United States, obtain an Employment Authorization Document (“EAD card”) and as a result, further government benefits including a social security number, driver’s license, and if otherwise qualified, financial benefits. An EAD card is issued with the name and date of birth of the holder printed on the card.
To execute his scheme, Naphaeng admitted that he advertised on the Internet and in flyers posted in Thai restaurants around the United States, that he could, in addition to helping with tax returns, obtain EAD cards for Thai nationals. Naphaeng admitted he never mentioned to his clients that he would file asylum applications on their behalf in order to obtain the EAD card. Naphaeng had the applicants supply him with vital personal information including their name and date of birth, photographs, and a copy of the biographical page from their passport. He would then file a false asylum application without the knowledge of the applicant in order to obtain the promised documents.
According to court documents, Naphaeng will forfeit $285,789.31 seized from him by law enforcement as part of the investigation. The funds will be applied to any order of restitution to the victims issued by the Court.
Naphaeng, who has been detained in federal custody since his arrest on December 22, 2015, is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on May 1, 2017. Mail fraud is punishable by statutory penalties of up to 20 years in federal prison; a fine of up to $250,000; and term of supervised release of up to 3 years. Visa fraud is punishable by statutory penalties of up to 10 years in federal prison; a fine of up to $250,000; and term of supervised release of up to 3 years.
The matter was investigated by Homeland Security Investigations and the United States Attorney’s office, with substantial assistance from the U.S. Citizenship and Immigration Services - Fraud Detection National Security Asylum Office, Newark, N.J., and the Warwick, R.I., Police Department.
The case is being prosecuted by Assistant U.S. Attorneys Richard W. Rose and Mary E. Rogers.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
RI Doctor Indicted on Charges of Health Care Fraud, Receiving KickbacksRead the Press Release
PROVIDENCE, R.I. – A 19-count federal indictment filed in U.S. District Court in Providence charges Jerrold N. Rosenberg, 62, of North Providence and Jamestown, R.I. with health care fraud, conspiracy to solicit or accept kickbacks, and receipt of kickbacks related to Rosenberg’s prescription of a fast-acting, powerful, and highly-addictive version of the opioid drug Fentanyl that is administered as an under-the-tongue spray.
Rosenberg was taken into custody today by agents from the Department of Health and Human Services Office of Inspector General, and the Medicaid Fraud Control and Patient Abuse Unit of the Rhode Island Department of Attorney General, on a federal warrant issued by the Court. Rosenberg was arraigned before U.S. District Court Magistrate Judge Lincoln D. Almond and released on unsecured bond.
The indictment alleges that, owing to its potency and potential for addiction, the Fentanyl spray is approved by the federal Food and Drug Administration solely for “the management of breakthrough cancer pain in . . . patients who are already receiving and who are already tolerant to opioid therapy for their underlying persistent cancer pain.” The spray is extremely expensive, with the cost of a thirty-day supply ranging from almost $2,000 to over $16,000. As a result, insurance companies, including insurers covering Medicare patients, impose strict requirements and limitations that must be met before the Fentanyl spray will be covered. Typically, these limitations require that a doctor submit paperwork showing that the patient has active cancer, that the spray is intended to treat breakthrough pain from this cancer, and that other powerful opioid drugs have been tried, without success.
It is alleged that Rosenberg repeatedly submitted false and fraudulent documentation to insurers to get them to approve and pay for the Fentanyl spray, including authorization forms and so-called letters of medical necessity that falsely claimed patients had cancer and related pain. He did this for patients who never had cancer at all, as well as cases where the patient’s history of cancer was long past and/or unrelated to any pain for which they sought treatment with Rosenberg.
In addition to the health care fraud scheme, it is alleged that Rosenberg conspired to seek and receive kickbacks from the manufacturer of the Fentanyl spray. These took the form of “sham” speaker programs, where, instead of a legitimate lecture about the Fentanyl spray, Rosenberg received company-paid dinners at expensive restaurants and speaking fees, on occasion dining only with family members or representatives from the drug company. In several instances, attendance forms for these events were forged to show that medical professionals had been present for a supposedly legitimate promotional discussion, when in fact they had not. The indictment alleges that these speaker programs were, in fact, a cover for payments by the drug company to Rosenberg, to induce him to write more, and higher, prescriptions for the spray.
Finally, it is alleged that Rosenberg’s son worked as a sales representative for the drug company that manufactured the Fentanyl spray, where he was responsible for marketing the drug to a number of physicians, including his father. The sales commissions of Rosenberg’s son were tied to the number of prescriptions written by doctors, and it is alleged that Rosenberg wrote more prescriptions for the Fentanyl spray to provide a financial benefit to his son.
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.
The investigation was conducted by the United States Attorney’s Office, U.S. Department of Health and Human Services Office of Inspector General, and the Medicaid Fraud Control and Patient Abuse Unit of the Rhode Island Department of Attorney General.
The case is being prosecuted by Assistant U.S. Attorneys Lee H. Vilker and Zachary A. Cunha.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Glocester Restaurant Owner Convicted on Federal Arson, Wire Fraud ChargesRead the Press Release
PROVIDENCE, R.I. – A federal court jury in Providence on Friday convicted Daniel E. Saad, 51, of Spencer, Mass., of devising and executing a scheme to burn down his Glocester, R.I., restaurant, Snow’s Clam Box Restaurant and Pub, and then attempting to collect on an insurance policy worth nearly one million dollars.
The jury convicted Saad on one count of arson, one count of use of fire to commit wire fraud, and two counts of wire fraud. The jury found that Saad set fire to his business shortly after 5:00 a.m. on November 30, 2014, and then initiated insurance claims via email later the same day and on the following day.
According to the government’s evidence presented during a three-week trial, Saad, who owed banks, private lenders and venders nearly $2.5 million dollars, entered the building through an unlocked rear door, spread gasoline in and around a bar area and ignited the gasoline before fleeing the building. A woman who was residing in an apartment above the restaurant reported the fire after fleeing from the building.
Saad’s conviction is announced by United States Attorney Peter F. Neronha; Mickey Leadingham, Special Agent in Charge of the Boston Field Division of ATF; Ann C. Assumpico, Superintendent of the Rhode Island State Police; Rhode Island State Fire Marshal John Chartier; and Glocester Police Chief Joseph S. DelPrete.
United States Attorney Peter F. Neronha commented, “Acts of arson pose a tremendous public safety threat, to the public generally and to first responders. This case is no exception. That this defendant would deliberately burn a building he owned to the ground, with his tenant living in the building and present at the time, demonstrates his utter disregard for the safety of others. He now faces at least a decade in federal prison for this behavior. Every day is well-deserved.”
According to the government’s evidence, during interviews with law enforcement, Saad on two occasions told investigators he was at his home in Massachusetts when the fire occurred. During a subsequent interview he told investigators that he was at his estranged wife’s home in Webster, Mass. On two occasions during interviews with state and federal investigators, Saad’s wife corroborated Saad’s account. However, after being summoned to appear before a federal grand jury and again when testifying during Daniel Saad’s trial, she changed her story and admitted that Daniel Saad had asked her to provide an alibi for him for the night of the fire. She testified that he was not with her that night.
Cellular data collected and analyzed by law enforcement placed Saad’s cellphone in very close proximity to his restaurant at the time the fire began.
Saad, who had been free on unsecured bond since his arrest on March 31, 2016, was ordered detained in federal custody following the return of the jury’s guilty verdicts. Saad is scheduled to be sentenced on April 27, 2017, by U.S. District Court Judge John J. McConnell, Jr., who presided over the trial.
Arson and wire fraud are punishable by statutory penalties of up to 20 years in federal prison, a fine of up to $250,000 and a term of supervised release of up to 3 years; use of fire to commit wire fraud is punishable by statutory minimum mandatory penalty of 10 years in federal prison, a fine of up to $250,000 and a term of supervised release of up to 3 years.
The matter was investigated by ATF, Glocester Police Department, Rhode Island State Fire Marshal’s Office and Rhode Island State Police.
United States Attorney Peter F. Neronha acknowledges and thanks the Rhode Island Department of Attorney General and the FBI’s Cellular Analysis Survey Team for their assistance in the investigation of this matter.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
E. Greenwich Resident Charged with Enticing a Minor for Sexual ActivityRead the Press Release
PROVIDENCE – Stephen Ferrante, 61, of East Greenwich, was ordered detained in federal custody following an initial appearance in U.S. District Court in Providence on Thursday before Magistrate Judge Lincoln D. Almond on a federal criminal complaint charging him with attempting to persuade, induce, entice or coerce an individual who has not attained the age of 18 years to engage in sexual activity.
It is alleged in court documents that Ferrante arranged to engage in sexual activity with an 8-year-old female during a series of emails, text messages and a telephone conversation with a person he believed to be the minor’s step-father. The person he was communicating with was a Rhode Island State Police detective assigned to the State Police Internet Crimes Against Children (ICAC) Task Force.
Ferrante’s arrest and the filing of a federal criminal complaint in this matter is announced by United States Attorney Peter F. Neronha; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England.
According to court documents, it is alleged that on January 4, 2017, a State Police detective responded by email to a posting on Craigslist.com posted by Ferrante soliciting “open minded” parents of a daughter willing to allow their daughter to “be naked in a group setting.” Ferrante was led to believe that he was communicating with the step-father of an 8-year-old girl. Over the next 8 days, communications by email, text message and telephone became sexually explicit during which time Ferrante expressed a strong interest to engage in sexual activity with the 8-year-old female.
According to court documents, it is alleged that on January 12, 2017, Ferrante and the State Police detective agreed to meet in person in Warwick, at which time Ferrante believed the 8-year-old girl would be made available to him to engage in sexual activity. Upon meeting at an agreed upon location, Ferrante was arrested and charged with two counts of solicitation. He was released on bail following his arraignment in Rhode Island state court.
A federal criminal complaint 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. Attempting to persuade, induce, entice or coerce an individual who has not attained the age of 18 years to engage in sexual activity in punishable by statutory penalties of 10 years to life imprisonment followed by up to lifetime supervised release, and a fine of $250,000.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Cranston Resident Pleads Guilty to Trafficking Fentanyl Laced HeroinRead the Press Release
PROVIDENCE, R.I. – Michael Bermudez, a/k/a Michael J. Morales, 35, of Cranston, pleaded guilty in federal court in Providence today to trafficking heroin laced with fentanyl and trafficking cocaine, announced United States Attorney Peter F. Neronha, Cranston Police Chief Colonel Michael J. Winquist, and Michael J. Ferguson, Special Agent in Charge of the DEA.
Appearing before U.S. District Court John J. McConnell, Jr., Bermudez pleaded guilty as charged in a federal indictment to one count each of possession of 100 grams or more of heroin with the intent to distribute and possession of cocaine with the intent to distribute.
According to court documents and information presented to the court, on October 6, 2016, Cranston Police Department detectives, with the assistance of agents from the Rhode Island DEA Drug Task Force, executed a court authorized search of Bermudez’s residence. The search resulted in the seizure of nearly 140 grams of heroin laced with fentanyl packed into approximately 6,600 packets, and approximately 153 grams of cocaine. The search warrant was authorized by the court during an investigation into Bermudez’s drug trafficking activities, which included multiple controlled purchases of heroin from Bermudez.
United States Attorney Peter F. Neronha commented, “This criminal conduct of this defendant, and others like him, is what is causing our opioid public health crisis. Fentanyl is a killer, plain and simple. Every one of those 6,600 fentanyl laced heroin packets was a potential fatal dose. Fortunately, they were intercepted before they reached unsuspecting heroin users. Cases like this won’t end our opioid overdose crisis, because prevention and treatment are also critically necessary. But they are a vital part of the solution, and thus need to be among our highest law enforcement priorities.”
According to court records, Bermudez was convicted in U.S. District Court in 2009 on fraud charges. At the time of his arrest in this matter, Bermudez was on state probation, having been convicted in Rhode Island Superior Court in September 2015 on drug trafficking charges.
Bermudez, who has been detained in federal custody since his arrest on October 6, 2016, is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on April 12, 2017.
Possession of 100 grams or more of heroin with the intent to distribute is punishable by statutory penalties of 40 years imprisonment, with a mandatory minimum term of 5 years imprisonment; a fine of up to $ 5,000,000; and a term of supervised release of up to life. Possession of cocaine with the intent to distribute is punishable by statutory penalties of up to 20 years imprisonment; a fine of $1,000,000; a term of supervised release of up to life, with a mandatory term of 3 years.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
Fmr. Providence Plan Finance Director to Plead Guilty to FraudRead the Press Release
PROVIDENCE – According to signed documents filed in U.S. District Court in Providence, Charles F. Denno, 66, of East Providence, a former finance director for the Providence Plan, has agreed to plead guilty to devising and executing a scheme in which he fraudulently converted more than $500,000 of Providence Plan funds for his own use.
Providence Plan is a non-profit educational entity which receives federal, state and private grant funds, including funds from the United States Department of Education and the Bloomberg Family Foundation. These grant funds are to be used to support educational and other programs for adults and children in Rhode Island. Annually, the federal grant funds awarded to the Providence Plan totaled in excess of four million dollars.
United States Attorney Peter F. Neronha; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; Brian Hickey, Special Agent in Charge of the U.S. Department of Education Office of Inspector General; and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division announced the filing today of an Information charging Denno with wire fraud.
United States Attorney Peter F. Neronha commented, “The Providence Plan receives a tremendous amount of federal, state and private funds each year for a laudable purpose: to provide educational and other programs to children and adults who would otherwise not have access to them. Every dollar the defendant stole – and he stole an outlandish amount – could have served someone who really needed it. It is precisely this type of conduct that gives rise to unwarranted public cynicism regarding such worthy programs. I want to thank the Providence Plan for their assistance and cooperation in this matter, once the defendant’s criminal conduct was discovered.”
According to court documents, from 2012 through July 2016, Denno used his authority to cause the U.S. Department of Education and the Bloomberg Family foundation to deposit funds into Providence Plan bank accounts and fraudulently converted those funds to his own personal use. The total amount of funds fraudulently converted from the Providence Plan to Denno’s personal use was more than $500,000.
In addition, according to court documents, Denno fraudulently prepared and issued Providence Plan checks made payable to CMG Enterprises, an entity he owned. The payments issued to CMG and deposited into a CMG bank account were not authorized and contained a forgery of the authorized check signing official at the Providence Plan. Denno subsequently made multiple withdrawals from the CMG bank account in various forms, including credit card payments, check payments and ATM cash withdrawals at Twin River Casino.
An information 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.
Wire fraud is punishable by statutory penalties of up to 20 years imprisonment; 3 years supervised; and a fine of up to $250,000.
The matter, being prosecuted by Assistant U.S. Attorney John P. McAdams, was investigated by the Rhode Island State Police Gaming Enforcement Unit, the U.S. Department of Education Office of Inspector General and the FBI.
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Jim Martin (401) 709-5357
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Two Indicted in Sweeping Mortgage Fraud InvestigationsRead the Press Release
PROVIDENCE, R.I. – A 14-count federal indictment filed in U.S. District Court in Providence charges two individuals, Hasan Hussain, 55, of Princeton, N.J., and Ricardo Abreu, 50, of Cranston, R.I., with allegedly participating in a conspiracy to defraud financial institutions, investors and financially distressed homeowners of at least 14 properties in Providence, Pawtucket and Cranston of fees, rental income, mortgage payment funds, property ownership and/or proceeds from the sale of their properties.
United States Attorney Peter F. Neronha announced today that this indictment represents the latest charges brought in a wide-ranging series of on-going federal criminal investigations into mortgage fraud in Rhode Island. The investigations are being conducted by the United States Attorney’s Office, the FBI, the U.S. Department of Housing and Urban Development Office of Inspector General, the U.S. Secret Service and the Rhode Island State Police Financial Crimes Unit.
To date, 10 individuals have been charged in U.S. District Court in Providence.
United States Attorney Peter F. Neronha commented, “Today’s defendants join their cohorts in facing charges for allegedly manipulating the mortgage lending process in a whole variety of ways. As alleged in the Indictment, the defendants used more than a dozen properties to advance their scheme to defraud, and in some instances, used a single property to defraud and victimize multiple people and entities. As alleged, their creativity was exceeded only by their greed, but their scheme, however complicated, has now been unraveled by law enforcement. The kind of schemes alleged here raise the cost of mortgage lending for all Rhode Islanders, and are therefore deserving of our most concerted law enforcement efforts.”
Joining United States Attorney Peter F. Neronha in announcing an indictment which charges Hasan Hussain with one (1) count of conspiracy, five (5) counts of wire fraud and eight (8) counts of aggravated identity theft; and Ricard Abreu with one (1) count of conspiracy and two (2) counts of wire fraud are Harold H. Shaw, Special Agent in Charge of the Boston Division of the FBI; Christina D. Scaringi, Special Agent in Charge of the Northeast Region of the U.S. Department of Housing and Urban Development Office of Inspector General; Brian Deck, Resident Agent in Charge of the Providence Office of the U.S. Secret Service; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
It is alleged that Hasan Hussain, through his various enterprises, with the assistance of employee and co-conspirator Ricardo Abreu, offered distressed homeowners loan modification, property management and property short sales services for a fee. Instead, it is alleged, the defendants conspired to fraudulently steal those funds, and to acquire and sell at least fourteen properties owned by distressed homeowners, many of whom are not fluent in English.
It is alleged that as part of the scheme, Hussain instructed distressed homeowners to vacate their properties while he worked to acquire loan modifications or short sales on their behalf. After taking control of the properties, Hussain not only pocketed fees and mortgage payments provided by the homeowners, he rented out some of the properties and pocketed rental payments without the owners’ knowledge.
It is also alleged that as part of the scheme, Hussain and Abreu acquired the properties in short sales and then solicited investors to purchase these properties at much higher prices thereby earning substantial profit. It is alleged that Abreu and others damaged the properties in order to reduce their appraised value prior to a bank inspection. Investors were promised investment opportunities that would require no down payment. It is alleged that the defendants caused false mortgage applications and other documentation to be filed to lending institutions for conventional bank and FHA mortgage loans for the buyers. Some of the documentation contained the names and personal identifying information of individuals who were unaware that their information was being used.
Hasan Hussain is scheduled to be arraigned in U.S. District Court on January 27, 2016. Ricardo Abreu was arraigned before U.S. District Court Magistrate Judge Patricia A. Sullivan on January 20, 2017, and released on unsecured bond.
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.
Other cases charged in federal court as a result of the mortgage fraud investigations include:
A 22-count federal indictment returned in December 2015, which alleged that between 2007 and 2014, a Rhode Island real estate attorney, a real estate agent, a licensed loan originator, a former loan officer, a loan processor and a real estate investor, conspired to execute a scheme which caused prospective homebuyers to obtain mortgages from financial institutions based upon materially false loan applications and fraudulent supporting documentation. It was also alleged that as part of the conspiracy, false representations were made in order to obtain fees to which the defendants were not entitled or to make a profit selling property in which they had an ownership interest. It was further alleged that, in some instances, thousands of dollars were fraudulently obtained by misrepresenting on a Housing and Urban Development form the amount of funds due or to be paid to parties involved in a transaction;
In September 2015, a former mortgage loan originator was convicted of conspiracy to commit bank fraud by participating in a scheme to defraud Flagstar Bank, by filing a fraudulent mortgage loan application and supporting documentation in the name of a person known to be deceased; and
In July 2015, a real estate appraiser whose licensed had expired, but who continued to conduct and issue real estate appraisals using the identity, license and insurance certificate of two licensed appraisers without his permission or knowledge, was convicted of making false statements on a loan application.
The cases are being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and William J. Ferland.
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Jim Martin (401) 709-5357
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Fmr. RI House Finance Chairman to Plead Guilty to Fraud, Aggravated Identity Theft, Tax ChargesRead the Press Release
PROVIDENCE – According to signed documents filed in U.S. District Court in Providence today, Raymond E. Gallison, Jr., 64, of Bristol, R.I., a former member of the Rhode Island House of Representatives and House Finance Committee Chairman, has agreed to plead guilty to federal mail fraud, wire fraud, aggravated identity theft and filing false tax return charges.
According to signed court documents, Gallison will admit to wide-ranging fraudulent and deceptive conduct to steal private money and hide his misuse of public money, and covering his tracks while doing so. Gallison will admit to the theft of funds from the estate of a deceased individual to which he was appointed executor; theft of funds from a Special Needs Trust established to protect the long-term welfare of a disabled individual to which he was appointed trustee; providing false information on tax documents, including vastly inflating the number of students assisted by a non-profit organization funded by public money while failing to disclose amounts paid by that organization to him; and failure to pay taxes on income derived from his criminal actions.
United States Attorney Peter F. Neronha and Rhode Island Attorney General Peter F. Kilmartin today announced the filing of a federal Information charging Raymond E. Gallison, Jr., with four (4) counts of mail fraud; one (1) count of wire fraud; one (1) count of aggravated identity theft; one (1) count of aiding the filing of a false tax document; and two (2) counts of filing a false tax return. According to a Plea Agreement filed in this matter, Gallison will serve, at a minimum, two years in federal prison.
According to signed documents filed with the Court, Gallison will admit that:
As executor of an estate of an individual from Barrington, R.I., who passed away in February 2012, he devised and executed various schemes to steal or transfer to his own name and bank accounts, cash, checks, stocks and real property belonging to the deceased person and/or his estate, valued at a total of $677,957.06. Gallison will admit that he fraudulently used the name and social security number of the deceased person to execute a scheme to cause the liquidation of certain stocks belonging to the deceased person;
He caused the filing of a false tax document on behalf of Alternative Education Programming (AEP), a non-profit organization which provided educational programs to students who may need assistance with course work, and/or minority and/or disadvantaged students who may need financial or other assistance to gain an education, and of which Gallison was listed as Assistant Director. The tax document listed that $77,957 in tuition and related fees and expenses were paid for 47 students from July 1, 2012, through June 30, 2013. In fact, on behalf of AEP, Gallison paid only $3,137.29 to assist 2 students during that year and paid approximately $64,575 to himself and another person in wages and consulting fees for no work undertaken on AEP’s behalf;
As trustee for a disabled person’s Special Needs Trust, he defrauded the Trust by writing a check from the Trust account for $8,900, which he deposited into an AEP account. Gallison then wrote a check for $8,800 from the AEP account to pay an outstanding bill at the Community College of Rhode Island; and
He failed to claim a total of $622,286.17 in income on joint IRS tax returns for tax years 2012 and 2013, and, as a result of his relevant conduct from 2012-2015, Gallison failed to pay a total of $226,332.31 in taxes.
An information 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.
Joining United States Attorney Peter F. Neronha and Rhode Island Attorney General Peter F. Kilmartin in announcing the filing of an information and plea agreement in this matter are Harold H. Shaw, Special Agent in Charge of the FBI Boston Division; Joel P. Garland, Special Agent in Charge, Internal Revenue Service Criminal Investigation; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
The matter was investigated by the United States Attorney’s Office, FBI, Internal Revenue Service Criminal Investigation, Rhode Island Department of the Attorney General, and the Rhode Island State Police.
The case is being prosecuted in federal court by Assistant U.S. Attorneys Dulce Donovan and William J. Ferland, and Special Assistant U.S. Attorney James R. Baum of the Rhode Island Department of the Attorney General.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
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Wyatt Detention Facility Escapee ArraignedRead the Press Release
PROVIDENCE – James Morales, 35, pleaded not guilty at his arraignment today in U.S. District Court in Providence before U.S. District Court Magistrate Judge Patricia A. Sullivan to an indictment charging him with escape from the Wyatt Detention Facility, announced United States Attorney Peter F. Neronha.
A federal grand jury returned an indictment in this matter on Tuesday, alleging that on December 31, 2016, Morales escaped from the custody of the Wyatt Detention Facility in which he was confined by direction of the Attorney General and her authorized representative, by virtue of an Order of detention of a United States Magistrate Judge for the District of Massachusetts.
Morales was captured in Somerville, Massachusetts on January 5, 2017, by Massachusetts State Police and returned to federal custody.
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.
Escape from the custody of the Attorney General is punishable by statutory penalties of up to 5 years imprisonment followed by up to 3 years supervised and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
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Indictment Alleges Child Pornography Production, DistributionRead the Press Release
PROVIDENCE – Jay Gaccione, 39, of Westerly, was arraigned in U.S. District Court in Providence today on a nine-count federal indictment returned on Tuesday charging him with production, distribution and possession of child pornography.
The indictment alleges that on at least six occasions between April 14, 2014, and April 24, 2016, Gaccione persuaded and coerced minor children to engage in sexually explicit conduct which was electronically recorded.
The indictment and arraignment of Gaccione on six (6) counts of production of child pornography, one (1) count of distribution of child pornography, and two (2) counts of possession of child pornography are announced by United States Attorney Peter F. Neronha; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
On November 4, 2016, as part an on-going investigation, HSI agents and members of the Rhode Island State Police Internet Crimes Against Children Task Force executed court authorized search warrants at Gaccione’s residence and seized, among other items, electronic and digital storage devices. Gaccione was arrested on November 4, 2016, and ordered detained on a federal criminal complaint charging him with the production and possession of child pornography.
An extensive forensic examination of the electronic devices seized and additional information developed by law enforcement since Gaccione’s arrest resulted in additional charges contained in the federal indictment.
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.
The case is being prosecuted by Assistant United States Attorney Denise M. Barton.
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Jim Martin (401) 709-5357
email: [email protected]
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Detainee Indicted on Escape ChargeRead the Press Release
PROVIDENCE – A federal grand jury in Providence today returned an indictment charging James Morales, 35, with escape from the custody of the Attorney General, announced United States Attorney Peter F. Neronha.
It is alleged in the indictment that on December 31, 2016, Morales escaped from the custody of the Wyatt Detention Facility in which he was confined by direction of the Attorney General and her authorized representative, by virtue of an Order of detention of a United States Magistrate Judge for the District of Massachusetts.
Morales was captured in Somerville, Massachusetts on January 5, 2017, by Massachusetts State Police and returned to federal custody.
James Morales is scheduled to be arraigned on the indictment before U.S. District Court Magistrate Judge Patricia A. Sullivan on Thursday, January 19, 2017, at 11:00 AM. 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.
Escape from the custody of the Attorney General is punishable by statutory penalties of up to 5 years imprisonment followed by up to 3 years supervised and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
Drug Trafficker Sentenced to 5 Years in PrisonRead the Press Release
PROVIDENCE, R.I. – Jose Ignacio Goris, 42, of Providence, convicted at trial for trafficking cocaine, has been sentenced to 60 months in federal prison. A federal court jury in Providence convicted Jose Ignacio Goris on January 14, 2016, of attempting to possess with the intent to distribute 500 grams or more of cocaine.
Goris was arrested on August 14, 2014, moments after he took custody of what he believed to be a kilogram of cocaine supplied to him at his request by a person he believed to be a drug trafficker. The purported drug trafficker was a DEA Task Force agent. The package was made to appear as if it contained a kilo of cocaine.
Goris’ sentence, imposed by U.S. District Court Judge John J. McConnell, Jr., is announced by United States Attorney Peter F. Neronha and Michael J. Ferguson, Special Agent in Charge of the DEA’s New England Field Division.
According to the government’s evidence presented at trial, beginning in early May 2014, Goris and two undercover drug task force agents, who posed as large-scale cocaine suppliers, engaged in a series of electronically recorded telephone conversations and meetings. Goris repeatedly represented to the agents that he had previously engaged in distributing large quantities of cocaine and that he was anxious to return to “work” trafficking cocaine.
On the afternoon of August 14, 2014, Goris and one of the agents met in a mall parking lot in Warwick, at which time Goris was shown what he believed to be two kilos of cocaine. The look-alike cocaine packages were hidden inside a secret compartment of the undercover agent’s vehicle. After examining the packages, Goris told the agent that he was leaving to get funds to purchase a kilo of the cocaine.
Later that day, Goris and the agent met inside a Cranston retail store and negotiated terms for the sale of the kilo of cocaine. After they reached agreement, the agent directed Goris to a vehicle in the store parking lot which he told Goris contained a bag with a kilo of cocaine. Goris was arrested by members of the Drug Task Force moments after he retrieved and took possession of the bag from the vehicle. Inside the bag was a package made to appear as if it was a kilo of cocaine.
The case was prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
The Rhode Island DEA Drug Task Force is comprised of agents and law enforcement officers from the DEA, ATF, IRS, Homeland Security Investigations, Rhode Island State Police, and Central Falls, Cranston, East Providence, Pawtucket, Providence, Newport, South Kingstown, Warwick, West Warwick and Woonsocket Police Departments.
Alleged Bank Robber DetainedRead the Press Release
PROVIDENCE – Lenin Gutierrez, 39, of Cranston, was ordered detained in federal custody today on a federal criminal complaint charging him with bank robbery. It is alleged that Gutierrez robbed a Citizens Bank branch office inside a Stop & Shop supermarket in Johnston on December 30, 2016.
The criminal complaint and Gutierrez’s initial appearance before U.S. District Court Magistrate Judge Patricia A. Sullivan is announced by United States Attorney Peter F. Neronha, Johnston Police Chief Richard S. Tamburini and Harold H. Shaw, Special Agent in Charge of the Boston Division of the FBI.
According to court documents and information presented to the court, it is alleged that Gutierrez, dressed in a beige jacket, black facemask, and a Spiderman hat and scarf, handed the bank teller a hand-written note demanding cash and threatening to shoot the teller if the money was not handed over. After the teller gave Gutierrez $100 and $50 dollar bills, Gutierrez demanded more money. The teller then handed over $20 bills. Gutierrez left the bank without showing a weapon.
According to court documents, a supermarket employee told responding Johnston Police officers that he saw a person who looked out of place on the other side of a fence adjoining the supermarket parking lot. Officers searched the area and located a black facemask, and a Spiderman hat and scarf. A beige jacket was located in the parking lot. Inside the jacket, officers located a note that said, “Robbery $100 and $50 Stacks only No die pack No Alarm. have A gun will use.” An outer pocket contained a stack of $20 bills.
According to court documents, a fingerprint lifted from the note by Johnston Police detectives was matched to Lenin Gutierrez. Further investigation by Johnston Police Department detectives, including the review of electronic surveillance video, determined that Gutierrez allegedly purchased the black ski mask, and Spiderman hat and scarf at a Walmart in Cranston the day before the robbery.
A criminal complaint 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.
Bank robbery is punishable by statutory penalties of up to 20 years imprisonment followed by up to 3 years supervised release and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
W. Warwick Resident Facing Child Pornography ChargesRead the Press Release
PROVIDENCE – Joseph Seymour, 38, of West Warwick, made an initial appearance in federal court in Providence on Wednesday charged with possessing and distributing child pornography. It is alleged that Seymour stored more than 8,000 images of child pornography on a digital storage device which he mailed via a commercial courier.
Seymour, charged by way of a federal criminal complaint with possession of child pornography and distribution of child pornography, was released on $10,000 unsecured bond following an appearance before U.S. District Court Magistrate Judge Patricia A. Sullivan.
Seymour’s arrest and the federal charges brought in this matter are announced by United States Attorney Peter F. Neronha; Shelly A. Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
According to information presented to the court, it is alleged that in July 2016, a Tempe, Arizona computer repair service notified the Tempe, Arizona Police Department that they discovered images on a digital hard drive that appeared to be child pornography. The hard drive had been sent to the Tempe, Arizona repair service via a Rhode Island-based manufacturer of electronic products. The Arizona company is often used by the Rhode Island-based manufacturer as a sub-contractor for computer repair services. It is alleged that the digital storage device owned by Seymour, and which allegedly contained images of child pornography, was mailed via a commercial courier.
According to court documents, the Tempe Police Department reviewed some of the material on the hard drive, and, after determining that some of the contents they reviewed allegedly depicted child pornography, they contacted that Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force. The hard drive was transferred to the ICAC Task Force and then to the U.S. Postal Inspection Service (USPIS) for further examination.
It is alleged that in addition to numerous documents and other files allegedly containing identifying information belonging to Joseph Seymour, a forensic examination by a USPIS Digital Evidence Unit revealed over 8,000 images of alleged child pornography stored in more than 160 subfolders.
On Wednesday, USPIS agents and members of the ICAC Task Force executed a court authorized search of Seymour’s residence and seized numerous computers and digital storage devices.
A criminal complaint 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.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Providence Resident Admits to Possessing Child PornographyRead the Press Release
PROVIDENCE – David A. Skally, 57, of Providence, pleaded guilty in federal court in Providence on Tuesday to possession & access with the intent to view child pornography, announced United States Attorney Peter F. Neronha; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
According to information presented to the court, in September 2015, the HSI Child Exploitation Unit became involved in an ongoing child pornography investigation into multiple individuals, believed to be residing across the United States as well as abroad, who are members of an Internet-based bulletin board. Users of the bulletin board were provided a link to a file sharing site from which child pornography could be accessed, viewed and downloaded.
In January 2016 and March 2016, the United States District Court for the District of Columbia issued orders directing the file sharing site to disclose certain records and other information relating to a list of unique links that contained child pornography files. In response to that order, the file sharing site produced business records which included information connected to the downloading of the child pornography files. These records showed, among other things, that child pornography, including sexually explicit images of prepubescent girls, were downloaded using an IP address associated with the Skally’s Providence residence.
A court authorized search of the defendant’s computers at his residence in June 2016 by members of HSI and the Rhode Island State Police Internet Crimes Against Children Task Force resulted in the discovery of child pornography. A further forensic examination of the computers resulted in the discovery of approximately 284 videos and 418 images of child pornography.
Skally, who was released to home confinement following his guilty plea on Tuesday, is scheduled to be sentenced by Chief Judge William E. Smith on March 9, 2017.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
$4.1M Collected in Civil and Criminal Actions for U.S. Taxpayers in FY 2016Read the Press Release
PROVIDENCE - U.S. Attorney Peter F. Neronha announced today that the District of Rhode Island collected $4,142,183.02 in criminal and civil actions in Fiscal Year 2016. Of this amount, $3,603,251.74 was collected in criminal actions and $538,931.28 was collected in civil actions.
Additionally, the U.S. Attorney’s Office in Rhode Island worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $836,334.27 in cases pursued jointly with these offices. Of this amount, $836,159.27 was collected in civil actions.
Collections in fiscal year 2016 bring the total amount of collections for U.S. taxpayers by the United States Attorney’s Office in Rhode Island over the past three fiscal years to more than $13.4 million dollars ($13,421,689.12).
Attorney General Loretta E. Lynch announced that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
“The mission of this Office is broad and multi-faceted, but at its heart, it is to ensure the safety, well-being and quality of life for all Rhode Islanders,” said United States Attorney Peter F. Neronha. “Whenever federal monies are misspent, there are fewer funds available, for example, for the infrastructure and other public projects this state so desperately needs. When individuals engage in fraud or manipulative schemes to deprive Rhode Island residents of their hard-earned money, there are often devastating consequences for those individuals and their families. Accordingly, ensuring that public and private funds are not misspent or stolen, and ensuring that such monies once misspent or stolen are repaid, is critical work, and we will continue to do it to the best of our ability.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s Office in Rhode Island, working with partner agencies and divisions, collected $2,940,027 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Construction Companies, Senior Corporate Officers to Pay $1M to Settle False Claims Act AllegationsRead the Press Release
PROVIDENCE – United States Attorney Peter F. Neronha announced today that Rhode Island-based Rosciti Construction Corporation and Wallace Construction Corporation, together with four of the companies’ current and former owners and officers, will pay $1 million dollars to resolve civil allegations that they violated the Federal False Claims Act by submitting, or causing the submission of, claims for reimbursement for funding earmarked for minority, women-owned, or small business that they were not entitled to receive.
The federally funded contracts for roadway, water system, and parking improvements in communities throughout the state and at Rhode Island College were financed by the Environmental Protection Agency, the United States Department of Education, and the United States Department of Transportation. The contracts contained specific requirements that subcontractors on these projects must include minority-owned, women-owned, or small businesses (commonly known as “disadvantaged business enterprises”). Rosciti Construction served as the prime contractor for the projects; Wallace Construction, a sub-contractor on all of the projects hired by Rosciti, was purported to be a disadvantaged business enterprise. In fact, the government alleges that Wallace was not at the time a legitimate disadvantaged business enterprise, and lacked the capacity to perform necessary work on the projects.
Each of the four senior officers and the owners of the two firms is individually contributing to the settlement.
“Disadvantaged business enterprise requirements exist to make sure that small companies owned by women and by minorities have a fair shot to compete for, and benefit from, the economic opportunities provided by federal grants and contract dollars,” said U.S. Attorney Peter F. Neronha. “That opportunity is lost when companies manipulate the process to secure federally funded work in place of those that are legitimately deserving. This Office will continue to use all means at our disposal to ensure that contractors who receive federal dollars play by the rules,” said Neronha.
In addition to paying a $1million dollar civil settlement, Rosciti and Wallace have entered into administrative agreements with the Environmental Protection Agency to resolve potential claims that could have resulted in suspension or debarment from participation in federal contracts and programs. Additionally, under the terms of these agreements, Rosciti and Wallace will appointment internal compliance officers and a neutral, third-party external monitor to ensure compliance with disadvantaged business enterprise requirements in the future; conduct training on these issues; and take additional steps to foster and maintain a culture of compliance. The costs of both the compliance officer and the monitor will be paid for by the companies.
This matter was handled by Assistant U.S. Attorneys Zachary A. Cunha and Richard W. Rose, and was investigated by the United States Environmental Protection Agency, the United States Department of Transportation, the United States Department of Education and the United States Attorney’s Office.
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Jim Martin (401) 709-5357
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2nd Person Sentenced in Sex Trafficking ConspiracyRead the Press Release
PROVIDENCE, R.I. – Mackenzy Scott, 20, of Providence, was sentenced today to 60 months in federal prison for sex trafficking two young teenagers, announced United States Attorney Peter F. Neronha; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England; Warwick Police Chief Colonel Stephen M. McCartney; and Seekonk, Mass., Police Chief Craig A. Mace.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Scott to serve 5 years supervised release upon completion of his prison term. Scott pleaded guilty on September 20, 2016, to conspiracy to commit sex trafficking of minors.
A co-defendant in this matter, Cristian Garcia, 21, of Providence, pleaded guilty in May 2016 to his role in the conspiracy. He was sentenced on October 27, 2016, to 24 months in federal prison to be followed by 5 years supervised release.
According to court records and information presented to the court, beginning in December 2014, Scott and Garcia conspired to take provocative photographs of a 14-year-old and a 16-year-old girl. The photographs were posted in advertisements on Backpage.com, offering the teenagers for commercial sex. Numerous individuals responded to the ads. Scott and Garcia either drove or arranged for the teenagers to be driven to various locations in Rhode Island and Massachusetts to engage in commercial sexual activity.
United States Attorney Peter F. Neronha commented, “The defendant sold children for sex, plain and simple. The thought of anyone engaging in such conduct, and of children being victimized in this way, is almost unimaginable, and yet we see it over and over again. We must continue to aggressively pursue those who, like this defendant, view children, and in some instances, adults, not as people, but as a means to satisfy their own greed.”
Mackenzy Scott was arrested on February 6, 2015. Cristian Garcia was arrested on March 14, 2016. Both have been detained since their arrests.
The cases were prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The matter was investigated by Homeland Security Investigations, and the Warwick and Seekonk Police Departments.
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Westerly Resident Sentenced for Possessing, Distributing Child PornographyRead the Press Release
PROVIDENCE – Normand Asselin, 41, of Westerly, was sentenced today to 87 months in federal prison for possessing and distributing child pornography, announced United States Attorney Peter F. Neronha and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Asselin to serve 10 years supervised release upon completion of his prison term. Asselin pleaded guilty on September 23, 2016, as charged in a federal indictment, to one count of distribution of child pornography and one count of possession of child pornography.
According to information presented to the court, in May 2015, Google security personnel reported to the National Center for Missing and Exploited Children that on March 18, 2015, images of child pornography were uploaded via email from an Internet Protocol (IP address) belonging to Normand Asselin. The information was forwarded to Rhode Island State Police. On May 15, 2015, Rhode Island State Police executed a court authorized search of Asselin’s Google email account which revealed that Asselin was sending and receiving images and video of child pornography.
On June 3, 2015, members of the Rhode Island State Police Internet Crimes Against Children (ICAC) task force a executed court authorized arrest warrant for Asselin and a court authorized search of his residence. A forensic preview of a laptop belonging to Asselin revealed the existence of images and videos of child pornography. A further forensic examination of the laptop revealed approximately 1,250 images and approximately 70 videos of child pornography.
Asselin has been detained since his arrest.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The Rhode Island ICAC task force is comprised of members of the Rhode Island State Police Computer Crimes Unit along with detectives from the Bristol, Coventry, Jamestown, Middletown, North Kingstown, Pawtucket, Portsmouth, Warwick, and Woonsocket Police Departments, and agents from Homeland Security Investigations, United States Naval Criminal Investigative Service and United States Postal Inspection Services.
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Contact:
Jim Martin (401) 709-5357
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Mass. Resident Detained in RI on Sex Trafficking ChargeRead the Press Release
PROVIDENCE – Andy Joseph, 24, of Brockton, Mass., was ordered detained in federal custody in Rhode Island today on allegations that he sex trafficked a 15-year-old Rhode Island resident over a two-month period this past summer. Joseph, arrested by Homeland Security Investigations agents and Pawtucket Police on Thursday, was ordered detained following an initial appearance today before U.S. District Court Magistrate Judge Lincoln D. Almond.
United States Attorney Peter F. Neronha; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England; and Pawtucket Police Chief Paul King announced the arrest and detention of Andy Joseph on a federal criminal complaint charging him with sex trafficking of a child.
According to information presented to the court, it is alleged that on June 15, 2016, Joseph, who had been communicating with the Rhode Island teenager via an Internet web site, met the 15-year-old in Rhode Island and drove the minor to a hotel room in Seekonk, Mass. It is alleged that once in the hotel room, he photographed the 15-year-old, posting the photographs in advertisements on Backpage.com, offering the young teenager for commercial sexual activity.
It is alleged that between June 15 and August 13, 2016, Joseph arranged for sexual encounters involving the 15-year-old. It is alleged that following each commercial sexual encounter, most or all of the money was turned over to Joseph, at his insistence.
A criminal complaint 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.
The case is being prosecuted by Assistant U.S. Attorneys Terrence P. Donnelly and John P. McAdams. The matter was investigated by Homeland Security Investigations and Pawtucket Police.
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Former Tax Preparer Sentenced to Prison for Fraud, ID TheftRead the Press Release
PROVIDENCE – A Cranston resident was sentenced to serve 36 months in prison today for aiding and assisting in the preparation of false tax returns, wire fraud, theft of government funds and aggravated identity theft, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Peter F. Neronha.
Belkis M. Guzman, 48, was a former employee of El Centro Multiservicios LLC, a tax preparation business located in Providence. Guzman was involved in two separate and distinct schemes. The first scheme involved the preparation and presentation of false individual income tax returns (Forms 1040) on behalf of El Centro clients for tax years 2009, 2010, and 2011, on which Guzman created, inflated and falsified dependents, exemptions, credits, deductions and expenses.
The second scheme involved the deposit of more than 100 U.S. Treasury checks into Guzman’s personal checking account. The Treasury checks were generated by the filing of fraudulent individual income tax returns containing stolen personal identifying information and fraudulent amounts of income, deductions and credits. Guzman aided the scheme by depositing more than $800,700 in fraudulently obtained refund checks into her bank account after signing many of the checks in place of the payees who were unknown to her, and then providing a majority of the proceeds to a third party in the form of cash and personal checks. Guzman received a percentage as payment for depositing the checks into her account.
Guzman previously pleaded guilty on Sept. 8, to aiding and assisting in the preparation of false tax returns, wire fraud, theft of government funds and aggravated identity theft. In addition to the prison term imposed, Guzman was also ordered to serve three years of supervised release and to pay $928,224.95 in restitution to the IRS.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Neronha commended the hard work of special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney W. Richard Rose and Tax Division Trial Attorney Christopher O’Donnell, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Former Rhode Island Tax Return Preparer Sentenced to Prison for Tax Preparation Fraud Scheme and Aggravated Identity TheftRead the Press Release
A Cranston, Rhode Island resident was sentenced to serve 36 months in prison today for aiding and assisting in the preparation of false tax returns, wire fraud, theft of government funds and aggravated identity theft, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Peter F. Neronha for the District of Rhode Island.
Belkis M. Guzman, 48, was a former employee of El Centro Multiservicios LLC, a tax preparation business located in Providence, Rhode Island. Guzman was involved in two separate and distinct schemes. The first scheme involved the preparation and presentation of false individual income tax returns (Forms 1040) on behalf of El Centro clients for tax years 2009, 2010, and 2011, on which Guzman created, inflated and falsified dependents, exemptions, credits, deductions and expenses.
The second scheme involved the deposit of more than 100 U.S. Treasury checks into Guzman’s personal checking account. The Treasury checks were generated by the filing of fraudulent individual income tax returns containing stolen personal identifying information and fraudulent amounts of income, deductions and credits. Guzman aided the scheme by depositing more than $800,700 in fraudulently obtained refund checks into her bank account after signing many of the checks in place of the payees who were unknown to her, and then providing a majority of the proceeds to a third party in the form of cash and personal checks. Guzman received a percentage as payment for depositing the checks into her account.
Guzman previously pleaded guilty on Sept. 8, to aiding and assisting in the preparation of false tax returns, wire fraud, theft of government funds and aggravated identity theft. In addition to the prison term imposed, Guzman was also ordered to serve three years of supervised release and to pay $928,224.95 in restitution to the IRS.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Neronha commended the hard work of special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Richard Rose and Tax Division Trial Attorney Christopher O’Donnell, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Mass. Resident Allegedly Traveled to RI to Engage in Illicit Sex with a MinorRead the Press Release
PROVIDENCE – Alexander Viola, 28, of Shrewsbury, MA., was arraigned on Tuesday in U.S. District Court in Providence on a charge of travelling across state lines with the intent to engage in illicit sexual conduct.
It is alleged that Viola traveled to Rhode Island in July with the intent to engage in illicit sexual conduct with a person he believed to be a 15-year-old female he had been communicating with on the Internet. The person he allegedly solicited was actually a Rhode Island State Police trooper assigned to the Internet Crimes Against Children (ICAC) Task Force.
Alexander Viola’s indictment and arraignment are announced by United States Attorney Peter F. Neronha; Colonel Ann C. Assumpico, Acting Superintendent of the Rhode Island State Police; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
It is alleged that for about 10 days beginning in early July, Viola communicated online and by text message with a person he believed to be a 15-year-old girl. It is alleged that Viola turned the conversations to a sexual nature. On July 12, 2016, Viola allegedly traveled to Rhode Island from his Massachusetts residence with the intent to meet with the 15-year-old girl and to engage in sexual activity. Upon his arrival at a previously agreed upon location, Viola was arrested by members of the ICAC Task Force. He was released following an appearance in Rhode Island state court.
Viola, arrested on a federal arrest warrant on Tuesday by members of the ICAC Task Force and HSI agents, was released on unsecured bond with electronic monitoring following his arraignment before U.S. District Court Magistrate Judge Patricia A. Sullivan.
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.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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Sex Trafficker Sentenced to 20 Years in PrisonRead the Press Release
PROVIDENCE, R.I. – Dujuan Harris, 35, of Providence, R.I., was sentenced today by U.S. District Court Chief Judge William E. Smith to 20 years in federal prison for trafficking a 17-year-old girl from Texas to Rhode Island for the purpose of offering her for commercial sexual activity, announced United States Attorney Peter F. Neronha, Providence Police Chief Colonel Hugh T. Clements, Jr., and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
Chief Judge William E. Smith imposed the sentence after Harris withdrew a motion he filed to withdraw his December 16, 2015, guilty plea to sex trafficking of a child and possessing child pornography. During a sentencing hearing in April 2016, Harris indicated to the court that he wanted to withdraw his guilty plea. He filed a motion to that effect on June 3, 2016, which the government opposed.
At the time of his guilty plea, Harris admitted to the court that he befriended the victim on the Internet, and that he continued to communicate with her via cell phone, text messages and Skype. Harris admitted that in June 2015, he facilitated the victim’s travel to Rhode Island by paying travel expenses to Boston via bus and then drove her to Providence. Once in Providence, Harris took photographs of the victim in various stages of undress and repeatedly posted them in ads on Backpage.com, offering the victim for commercial sexual activity. An investigation by Providence Police and Homeland Security Investigations determined that the response to the ad was immediate and that numerous sexual encounters with the victim for a fee were arranged.
On June 30, 2015, HSI agents, Providence Police detectives and members of the Human Trafficking Task Force located the victim in Harris’ apartment in Providence and rescued her. Investigators discovered numerous nude photographs of the 17-year-old victim on Harris’ cell phone.
United States Attorney Peter F. Neronha commented, “The defendant here is a remorseless, recidivist, and manipulative predator who deserves the longest possible sentence. Every day that he walks the street is a day that children are at risk. His efforts at manipulation here were as transparent as glass, and he fooled no one but himself. May he reflect on that as he serves his entirely deserved, very lengthy sentence in federal prison.”
Matthew J. Etre, Special Agent in Charge of HSI for New England added, “This sentencing will ensure that Dujuan Harris will be unable to harm other juveniles for a long time. We will continue to pursue those engaged in commercial sex trafficking with the help of our partners in Providence and beyond. This case serves as a good example of how partnerships between federal and local law enforcement can serve as a significant deterrent to those seeking to exploit children.”
“The Providence Police Department, along with our federal and local law enforcement partners, will continue to work vigilantly to remove people like Harris from the streets of our city and state,” said Providence Police Chief Hugh T. Clements. “Subjects who prey on young women for solicitation of sexual activity are a high priority for our investigators, and this sentencing should serve as an example to criminals in the sex trafficking game.”
Since his arrest and detention at the ACI, despite a no-contact order, Harris contacted the victim more than 100 times.
The case was prosecuted by Assistant U.S. Attorneys Terrence P. Donnelly and Ly T. Chin.
United States Attorney Peter F. Neronha thanks prosecutors from the Rhode Island Department of the Attorney General who assisted the United States Attorney’s Office in the prosecution of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Mass. Resident Detained for Allegedly Enticing a MinorRead the Press Release
PROVIDENCE – Rafael P. Leal, 38, of Boston, Mass., was ordered detained in federal custody in Rhode Island today on charges he allegedly traveled to Rhode Island to entice a minor child to engage in illicit sexual conduct, announced United States Attorney Peter F. Neronha, Bristol Police Chief Josue D. Canario and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
Leal was arrested earlier today at his Massachusetts residence by FBI agents on a federal arrest warrant issued with the filing of a federal criminal complaint in U.S. District Court in Providence charging Leal with interstate travel to engage in sexual activity with a minor and using means of interstate commerce to entice a minor to engage in sexual activity.
According to information presented to the court, it is alleged that the defendant used the Internet and text messages to entice a minor over a period of months to engage in sexual activity without the minor’s parents’ knowledge. It is alleged that the defendant crossed state lines on at least four occasions with the intent to engage in sexual conduct with a minor. It is alleged that the defendant sent gifts to the victim and directed the victim to conceal the activity.
A criminal complaint 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.
Using means of interstate commerce (Internet) to entice a minor to engage in sexual activity is punishable by a statutory penalty of a mandatory minimum of 10 years up to life imprisonment; interstate travel to engage in sexual activity with a minor is punishable by a statutory penalty of up to 30 years imprisonment.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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Former DLT Worker Pleads Guilty to Theft, Computer Fraud ChargesRead the Press Release
PROVIDENCE, R.I. – Ambulai R. Sheku, 37, of Providence, a former Senior Employment Interviewer with the Rhode Island Department of Labor and Training (DLT), pleaded guilty in federal court in Providence today to conspiring to commit mail fraud, theft of government funds and accessing a protected computer to commit fraud.
Sheku admitted that between June 2009 and February 2015, he used his position at DLT and his authorized access to DLT computer files to participate in a scheme to make unauthorized changes to benefit recipients’ files which resulted in the fraudulent disbursement of more than $508,000 of unemployment insurance benefits.
Sheku’s guilty plea before U.S. District Court Chief Judge William E. Smith is announced by United States Attorney Peter F. Neronha; Colonel Ann C. Assumpico, Acting Superintendent of the Rhode Island State Police; and Michael C. Mikulka, Special Agent in Charge of the New York Region of the Department of Labor - Office of Labor Racketeering and Fraud Investigations.
At the time of his guilty plea, Sheku admitted that he used his authorized access to DLT computers and computer files to obtain unemployment benefits for himself and others to which they were not entitled. As part of the scheme Sheku changed the mailing addresses of legitimate unemployment insurance beneficiaries, thus causing banks to mail unemployment insurance benefits to individuals not entitled to receive them; without authorization, extended the expiration of benefits for members of the conspiracy; caused fraudulent claims, including claims by individuals who were employed and thus ineligible for unemployment benefits, to be approved and dispersed; increased the balance of unemployment insurance benefits; and fraudulently removed blocks or “stops” on benefit payments, thus allowing coconspirators to continue receiving benefits to which they were not entitled.
It is alleged in court documents that the scheme resulted in a loss to the Rhode Island Department of Labor and Training of approximately $508,691, of which approximately $350,606 were federal funds.
Sheku is scheduled to be sentenced on February XX, 2017.
The matter continues to be investigated by the United States Attorney’s Office, Rhode Island State Police and the U.S. Department of Labor, with the assistance of the Rhode Island Department of Labor and Training and the U.S. Postal Inspection Service.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
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Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Convicted Felon Pleads Guilty to 3rd Firearm OffenseRead the Press Release
PROVIDENCE, R.I. – Christopher Rene, 26, of Providence, pleaded guilty in federal court in Providence today with being a felon in possession of a firearm. Rene was arrested by Providence Police on February 4, 2016. It was the third time Rene had been arrested on firearm charges.
Rene’s guilty plea before U.S. District Court Judge John J. McConnell, Jr., is announced by United States Attorney Peter F. Neronha, Providence Police Chief Colonel Hugh T. Clements, Jr., and Harold H. Shaw, Special Agent in Charge of the FBI in New England.
According to court records, at the time of his arrest in February Rene was on federal supervised release and state probation. In August 2009, Rene was convicted in state court on drug trafficking and firearm charges. He was sentenced to 7 years in prison, 6 months to serve and 78 months of probation. In a separate matter, in March 2011, Rene was convicted in federal court of being a felon in possession of a firearm. He was sentenced to 46 months in prison, to be followed by 3 years of supervised release.
On February 10, 2015, while on federal supervised release and state probation, Rene was among 35 individuals arrested during a series of investigations into violent crimes in Providence as part of the Rhode Island Urban Violent Crime Initiative. Based on information gathered by law enforcement, Rene was arrested for violating the terms of his federal supervised release. He was sentenced to six months in federal prison and an additional 30 months of federal supervised release.
According to state court documents, in February 2016, during an investigation into drug trafficking in Providence, Providence Police seized 41 bags of crack cocaine and .40 caliber handgun from vehicles accessed by Rene. Rene was detained shortly after he exited one vehicle and placed the handgun in the second vehicle.
Rene is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on February 15, 2017.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by the Providence Police Department with the assistance of the FBI’s Safe Streets Task Force.
United States Attorney Peter F. Neronha acknowledges and thanks the Rhode Island Department of Attorney General for their assistance in this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI