Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 20 December 2019
Milwaukee Medical Doctor and Clinic Office Manager Convicted of Unlawfully Distributing OpioidsRead the Press Release
United States Attorney Matthew D. Krueger announced today that on December 17, 2019, Steven Kotsonis, a medical doctor, 38, of Menomonee Falls, pleaded guilty in federal district court to one count of unlawfully distributing Oxycodone outside of a professional medical practice and not for a legitimate medical purpose. Susan Moyer, 57, of Milwaukee, who is not a licensed medical provider and was the clinic’s office manager, previously pleaded guilty to one count of conspiracy to possess with intent to distribute and distribute controlled substances, including Oxycodone, and one count of distribution of Oxycodone.
Pursuant to his guilty plea, Kotsonis admitted that in 2012, he relocated his practice from the Beaver Medical Clinic and changed the name to the Compassionate Care Clinic. Moyer was the officer manager at the Compassionate Care Clinic, and also was the co-owner of the clinic. Moyer is not a licensed health care provider and there were no other licensed physicians, nurses, or other health care providers working at the Compassionate Care Clinic aside from Kotsonis.
The investigation of the Compassionate Care Clinic revealed that only cash was accepted and individuals paid $200 to $350 in cash to obtain a prescription. Prescriptions were written for large quantities of Oxycodone, particularly Oxycodone 30mg (an average of 150-180 tablets per month). Moyer typically filled out the prescriptions and had Kotsonis sign the prescriptions without Kotsonis actually seeing the individual patient. Individuals frequently obtained prescriptions at the Compassionate Care Clinic without being examined or having their vitals (height, weight, blood pressure) taken during their visit. During an office visit to the Compassionate Care Clinic during the course of the investigation, Moyer was recorded referring to herself as the “Oxy Czar.”
Kotsonis and Moyer are scheduled to be sentenced in March. Each faces a maximum penalty of twenty years’ imprisonment, a fine of up to $1,000,000, at least three years of supervised release, up to a maximum of a lifetime term of supervised release, and a special assessment of $100.
“This case underscores the Justice Department’s commitment to combatting the opioid crisis,” said United States Attorney Krueger. “Far too many Wisconsinites have seen loved ones suffer from an opioid addiction or, worse, an overdose. Because the path to addiction often begins with prescription opioids, we are committed to investigating and prosecuting prescribers like Kotsonis who deal drugs behind the façade of medical practice.”
DEA Assistant Special Agent in Charge Paul Maxwell commented, “The Drug Enforcement Administration is committed to identifying and investigating those medical “professionals” who use their positions of trust to become drug dealers for personal profit. This investigation is an example of our resolve to hold those individuals accountable for their actions.”
This case was investigated by the DEA. The case is being prosecuted by Assistant United States Attorneys Matthew Jacobs and Laura S. Kwaterski.
Information and resources concerning the opioid crisis and the DEA’s “360 Strategy” for addressing the crisis may be found at the DEA’s website, www.dea.gov
# # # #
Middletown Used Car Dealer Admits Defrauding Lenders, Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that GEORGE HAJATI, 41, of Cromwell, waived his right to be indicted and pleaded guilty today in Bridgeport federal court to one count of wire fraud stemming from an auto loan fraud scheme. Hajati also admitted that he violated the conditions of his supervised release that followed a prior federal conviction.
According to court documents and statements made in court, Hajati owned and operated a used car dealership located at 1075 Newfield Street in Middletown known as Car Nation, LLC, Car Nation CT, LLC, and Middletown Motorcars. In connection with automobile loan applications for multiple borrowers, Hajati, and employees at his direction, submitted documents and statements to victim lenders that falsely represented the borrower’s employment, salary, sources of income, and the fact and amount of a down payment. The false documents included fictitious or altered borrower pay stubs and income verification letters purportedly from the Social Security Administration. Hajati falsely indicated that borrowers made salaries they did not make, worked at jobs they did not work, received income from the Social Security Administration they did not receive, and made down payments they did not make. In some instances, the borrower was not aware of, and did not consent to, Hajati using his or her personal identifying information to obtain automobile loans in these ways.
Between approximately April 2016 and July 2019, Hajati defrauded victim lenders of $654,952.56 through this scheme.
Hajati was arrested on a federal criminal complaint on July 2, 2019.
Hajati was previously convicted of federal conspiracy and fraud offenses related to a Hartford-area mortgage fraud scheme that defrauded various lenders of more than $1 million. In August 2015, Hajati was sentenced in Hartford federal court to 12 months and one day of imprisonment, followed by three years of supervised release. He was released from federal prison in August 2016, and was on supervised release at the time of the auto loan fraud.
Hajati is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny in Hartford on March 6, 2020, at which time he faces a maximum term of imprisonment of 30 years for the fraud offense, and two years of imprisonment for violating the conditions of his supervised release.
Hajati is released on a $560,000 bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Social Security Administration Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney David T. Huang.
Metairie Man Charged with Defrauding His Employer and Filing False Tax ReturnRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DEEPAK “JACK” JAGTIANI, age 60, a resident of Metairie, was charged on December 19, 2019 in a two-count indictment with wire fraud and making false statements on a federal income tax return.
According to the indictment, from 2007 to 2019, JAGTIANI served as the comptroller of Dan-Gulf Shipping, Inc., a Metairie-based freight forwarding company. In that capacity, JAGTIANI had the authority to manage the payroll and other accounts for Dan-Gulf. Using his authority, JAGTIANI paid himself excessive salaries and benefits from 2009 through early 2019. In total, JAGTIANI defrauded Dan-Gulf of over $7,000,000.00. The indictment also alleges that JAGTIANI filed false personal tax returns in April 2018, in which he claimed that he and his spouse sustained $998,335.00 in business losses from a “catering business” in order to reduce their tax burden. In truth and in fact, neither JAGTIANI nor his spouse operated any catering business.
If convicted of wire fraud, JAGTIANI faces a maximum of 20 years in prison, a $250,000.00 fine, and up to three years of supervised release. If convicted of filing false tax returns, JAGTIANI faces a maximum of three years of imprisonment, a $250,000.00 fine, and up to one year of supervised release.
U.S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the agencies that contributed to this indictment, including the U.S. Secret Service, the Internal Revenue Service – Criminal Investigations, and the Jefferson Parish Sheriff’s Office. U.S. Attorney Strasser also extended his thanks to the Jefferson Parish District Attorney’s Office for their assistance in this matter. This case is an example of the coordinated effort of the federal and state law enforcement authorities within the Louisiana Financial Crimes Task Force, which includes representatives from the U.S. Secret Service, the Internal Revenue Service, the Louisiana Attorney General’s Office, Louisiana State Police, Jefferson Parish Sheriff’s Office, New Orleans Police Department, Covington Police Department, Hammond Police Department, Kenner Police Department, Mandeville Police Department, Slidell Police Department, St. Bernard Parish Sheriff’s Office, St. John the Baptist Sheriff’s Office, St. Tammany Parish Sheriff’s Office, Tangipahoa Parish Sheriff’s Office, St. Tammany Parish District Attorney’s Office, Homeland Security Investigations, U.S. State Department, U.S. Postal Inspection Service, Social Security Administration-Office of Inspector General, and the Defense Criminal Investigative Service. Assistant United States Attorney Matthew R. Payne is in charge of the prosecution, and Assistant United States Attorney Michael B. Redmann is handling forfeiture.
Members of cartel-connected drug trafficking ring sentenced to federal prisonRead the Press Release
WAYCROSS, GA: Two drug traffickers connected with a Mexican cartel that supplied a south Georgia methamphetamine conspiracy have been sentenced to federal prison.
Enio Camacho-Pineda, a/k/a “Tony,” a/k/a “Tony Montana,” 31, of Atlanta, was sentenced to 268 months in prison, and Donna Bazemore, a/k/a “Dirty D,” 45, of McRae, Ga., was sentenced to 216 months in prison by U.S. District Court Judge Lisa Godbey Wood, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Camacho-Pineda and Bazemore had each pled guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine.
Each must serve a period of supervised release after their prison term. There is no parole in the federal system.
“These traffickers built a virtual pipeline for poison from illegal Mexican meth labs to drug users in Georgia, but good police work from the Telfair County Sheriff’s Office and many other agencies shut it down,” said U.S. Attorney Christine. “Our office is committed to taking the ball from our law enforcement partners and carrying it across the goal line, and in this case that effort secured guilty pleas from every one of these meth merchants.”
Camacho-Pineda and Bazemore were the final two defendants of 11 sentenced from an October 2018 indictment alleging they were involved in a drug trafficking organization that smuggled in kilograms of methamphetamine from the La Familia cartel in Mexico and delivered it by courier to south Georgia for distribution in Telfair County and beyond. According to testimony in court, Camacho-Pineda was a member of the cartel, while Bazemore admitted trafficking meth on behalf of the organization.
All 11 defendants in the operation have now pled guilty and been sentenced.
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division said of the sentencings, “Mexican drug cartels (in this case La Familia) are the source of so many dangerous drugs destined for the U.S. and are responsible for much of the violence in Mexico today. These sentencings illustrates how DEA, its law enforcement counterparts and the U.S. Attorney’s Office will not allow Mexico-based drug traffickers to wreak havoc on our society.”
“This case is the product of a concerted collaborative effort on the part of ATF and its law enforcement partners to target, investigate, and eliminate violent drug trafficking organizations,” said Beau Kolodka, Special Agent in Charge of the Atlanta Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “These sentences will ensure the incarceration of dangerous criminals and contribute to the restoration of order and peace.”
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF), the premier U.S. Department of Justice program to dismantle multi-jurisdictional drug trafficking organizations, and was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA), the Georgia Bureau of Investigation (GBI), the U.S. Marshals Service, Telfair County Sheriff’s Office, Jeff Davis County Sheriff’s Office, the Douglas-Coffee Drug Unit, and other local law enforcement agencies. The case also falls under the umbrella of the U.S. Department of Justice’s Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer. The case is being prosecuted by Assistant U.S. Attorneys John Harper and E. Greg Gilluly, Jr.
Meds2Go Express Pharmacy, Inc. Pleads Guilty to Money Laundering in Connection with Drug Diversion SchemeRead the Press Release
Related Charleston Pharmacy Previously Shut Down
Pharmacy Agrees to Pay A Total of $250,000 in Community Restitution and Forfeiture
CHARLESTON, W.Va. – A pharmacy located in Alum Creek in Lincoln County pled guilty to money laundering, announced United States Attorney Mike Stuart. The money laundering charge arose out of a conspiracy between the pharmacy and a pain clinic operating as a pill mill to dispense compound opioids for no legitimate medical purpose and outside the bounds of professional medical practice.
“Meds2Go Express Pharmacy is being held accountable for its role in contributing to West Virginia’s opioid crisis,” said United States Attorney Mike Stuart. “This pharmacy put profits before all else and caused great harm to the communities it served. Prosecuting poison peddlers, whether they be a street dealer, drug kingpin, a medical professional or a corporation, has been and will continue to be, a priority for my office.”
In a plea agreement reached with the United States, Meds2Go Express Pharmacy, Inc. will shut down and pay community restitution for the costs associated with drug abuse treatment in West Virginia to redress the harm caused by illicit opioid usage stemming from the sale of prescription opioids.
Meds2Go Express Pharmacy, Inc. admitted that in 2014 and 2015, it filled prescriptions written by physicians employed by a pill mill despite its knowledge that there was no legitimate medical purpose for the prescriptions and that they were prescribed outside the usual course of medical practice. In order to maximize corporate profits, the pharmacy ignored numerous red flags that should have prevented them from dispensing the prescription medications written by the pill mill, such as: (1) an abnormally high amount of prescriptions for widely-abused, highly-addictive controlled substances such as oxycodone; (2) prescribed controlled substances to patients for long periods of time; (3) permitted refills before prior prescriptions should have run out; (4) ignored obvious signs that patients were drug addicts; (5) patients travelled long distances and from out of state; (6) multiple pill mill physicians issued prescriptions to the same patient; (7) numerous family members who were all patients of the pill mill, came to the pharmacy at the same time; (8) insurance companies refused to pay for prescriptions from the pill mill; and (9) cash-only transactions.
Meds2Go Express Pharmacy, Inc. admitted that it engaged in illegal manufacturing of its own supply of oxycodone and methadone due to supply and demand by “compounding” pills in mass quantities at its locations Alum Creek and Charleston. Due to the excessive amount of prescriptions for controlled substances written by the pill mill, the pharmacy could not obtain enough of a supply of oxycodone and methadone from its distributors. In order to keep up with the demand, the pharmacy bypassed purchase restrictions from the distributor by setting up and purchasing compounding equipment, training its employees to compound pills on a mass scale, purchasing powders and other raw materials, and manufacturing pills containing oxycodone and methadone. The compounded pills were then sold to cash-paying customers who had prescriptions written by the pill mill. The pharmacy used the proceeds from the illegal manufacturing and dispensing to carry on the operations of business.
As part of the plea agreement with the United States, Meds2Go Express Pharmacy, Inc. agreed that it will shut down and pay $250,000 toward community restitution and a forfeiture money judgment. The community restitution will be paid for the costs associated with drug abuse treatment in West Virginia to redress the harm caused by illicit opioid usage stemming from the sale of prescription opioids. The West Virginia Crime Victim's Compensation Fund will receive 65% of the community restitution amount, and 35% will be paid to West Virginia Department of Health and Human Resources, Bureau of Behavioral Health and Health Facilities.
United States District Judge Irene C. Berger presided over the hearing. The investigation was conducted by the U.S. Food and Drug Administration – Office of Inspector General (OIG) and the U.S. Department of Health and Human Services – Office of Inspector General (OIG). Assistant United States Attorneys Andrew Tessman and Steven I. Loew are handling the prosecution.
The plea agreement in this case can be found
here .Follow us on Twitter: SDWVNews and USAttyStuart
###
Maryland Tax Preparer Pleads Guilty to Preparing False Returns and Aggravated Identity TheftRead the Press Release
Greenbelt, Maryland – Maria Espinal, age 53, of Montgomery Village, Maryland, pleaded guilty today to aiding and assisting in filing false tax returns and aggravated identity theft.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division; Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Maryland Comptroller Peter Franchot.
According to court documents and statements made in court, Maria Espinal owned and operated a tax return preparation business located in Gaithersburg, Maryland. From 2011 through 2017, Maria Espinal prepared and filed fraudulent tax returns on behalf of her clients with the Internal Revenue Service (IRS) and the Comptroller of Maryland that claimed tax refunds to which the clients were not entitled. To generate a fraudulent refund, Espinal altered legitimate Forms W-2 in the names of third parties and replaced the third party’s name with her client’s name. As a result, her client claimed the third-party’s withholdings as his or her own, which generated fraudulent tax refunds.
In addition, Espinal displayed a sign on her office wall that read in Spanish “If you have lost your [identification] number or passport we have these people” and which listed the identifying information for several individuals. Espinal used the personal identifying information for one of those individuals to obtain a fraudulent refund on behalf of another client. Espinal also filed a tax return using another individual’s personal identifying information to generate a fraudulent refund that Espinal deposited into her own personal bank account.
Espinal faces a mandatory sentence of two years in prison for aggravated identity theft, and three years in prison for aiding in the preparation of a false tax return. She also faces a period of supervised release, restitution, and monetary penalties. U.S. District Judge Theodore D. Chuang set sentencing for April 2, 2020, at 9:30 a.m.
U.S. Attorney Hur and Principal Deputy Assistant Attorney General Zuckerman thanked IRS - Criminal Investigation and the Office of the Comptroller of Maryland for their work in the investigation, and commended Assistant United States Attorney Erin Pulice and Trial Attorney Carl Brooker of the Tax Division, who are prosecuting the case.
# # #
Maryland Tax Preparer Pleads Guilty to Preparing False Returns and Aggravated Identity TheftRead the Press Release
A Maryland tax return preparer pleaded guilty yesterday to aiding and assisting in filing false tax returns and aggravated identity theft, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert K. Hur of the District of Maryland.
According to court documents and statements made in court, Maria Espinal owned and operated a tax return preparation business located in Gaithersburg, Maryland. From 2011 through 2017, Maria Espinal prepared and filed fraudulent tax returns on behalf of her clients with the Internal Revenue Service (IRS) and the Comptroller of Maryland that claimed tax refunds to which the clients were not entitled. To generate a fraudulent refund, Espinal altered legitimate Forms W-2 in the names of third parties and replaced the third party’s name with her client’s name. As a result, her client claimed the third-party’s withholdings as his or her own, which generated fraudulent tax refunds.
In addition, Espinal displayed a sign on her office wall that read in Spanish “If you have lost your [identification] number or passport we have these people” and which listed the identifying information for several individuals. Espinal used the personal identifying information for one of those individuals to obtain a fraudulent refund on behalf of another client. Espinal also filed a tax return using another individual’s personal identifying information to generate a fraudulent refund that Espinal deposited into her own personal bank account.
U.S. District Judge Theodore Chuang set sentencing for April 2, 2020. Espinal faces a mandatory sentence of two years in prison for aggravated identity theft, and three years in prison for aiding in the preparation of a false tax return. She also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hur thanked Special Agents of IRS - Criminal Investigation and Enforcement Agents of the Comptroller of Maryland who conducted the investigation, and Trial Attorney Carl Brooker of the Tax Division and Assistant United States Attorney Erin Pulice of the District or Maryland, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the Division’s website.
Marshall County Man Convicted of Federal Cyberstalking and Gun CrimeRead the Press Release
GREENVILLE, Miss. – A Marshall County man was convicted Thursday afternoon of cyberstalking as well as a federal gun violation following a four-day jury trial presided over by United States District Judge Debra M. Brown. Anthony Robinson, 54, of Byhalia, Mississippi, was found guilty of Possession of a Firearm by a Convicted Felon, and Cyberstalking, a new federal law which makes it a crime to use email or other facility of interstate commerce to intimidate or harass a person and put them in reasonable fear of serious bodily injury or death. The announcement regarding Robinson’s conviction was made by U.S. Marshal Daniel R. McKittrick and U.S. Attorney William C. Lamar.
Testimony presented during the trial revealed that following his layoff in Desoto County, Robinson began sending emails referencing mass shootings to his former employer and the attorneys representing his former employer. In the emails, sent from October of 2018 until July of 2019, Robinson self-identified with a number of mass shooters, including Dewayne Craddock and Omar Thornton. Three victims testified that the emails put them in reasonable fear of death or serious bodily injury. A search of Robinson’s residence revealed a number of firearms and ammunition.
Following the verdict, U.S. Attorney William C. Lamar noted the importance of this case and commended federal, state and local law enforcement partners for their dedication to helping make our communities safer. “This case marks the first prosecution in our District under the new federal law preventing cyberstalking and the new Project Guardian initiative, implemented by the Department of Justice in the Fall of 2019, remarked Lamar. “Utilizing the framework of Project Guardian alongside our existing efforts through Project Safe Neighborhoods, we will continue to work alongside our federal, state and local law enforcement partners to make our communities safer, one case at a time.”
The investigation and prosecution of Robinson was undertaken as part of Project Safe Neighborhoods, the Department of Justice’s longstanding gun violence reduction initiative, and Project Guardian, the Department of Justice’s new initiative to help reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The case was prosecuted by AUSA Clyde McGee and AUSA Parker Kline.
Marion County Man with 28 Felony Convictions Found Guilty of Federal Firearm ChargeRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II today found Charlie Lee Wright, Jr. (52, Summerfield) guilty of possession of a firearm affecting commerce by a convicted felon, following a bench trial. Because of his prior criminal record, Wright faces a penalty of at least 15 years, and up to life, in federal prison. A sentencing hearing is scheduled for March 20, 2020.
Wright was indicted by a federal grand jury on July 17, 2019.
According to the evidence presented at trial, Wright has 28 prior felony convictions in Florida. As a convicted felon, he is prohibited from possessing a firearm or ammunition under federal law.
On January 16, 2019, the Marion County Sheriff’s Office executed a search warrant at Wright’s Summerfield residence pursuant to an investigation into missing jewelry. During the search, detectives located five firearms and hundreds of rounds of ammunition inside the home, and inside a car registered in Wright’s name. Wright subsequently admitted to federal investigators that he had handled two of the recovered firearms.
This case was investigated by the Marion County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Man Sentenced to Prison for Illegal Straw Purchase of a FirearmRead the Press Release
ALEXANDRIA, Va. – A Manassas man was sentenced today to one year in prison for straw purchasing a firearm.
“Straw purchasing a firearm is a federal crime with serious consequences,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We are doubling down on our efforts across the DMV to prosecute any and all straw purchasing cases. It should send a strong message to those who would come into Virginia to illegally purchase firearms – Don’t lie and buy for the other guy. You will be prosecuted.”
According to court documents, in January 2017, Robert Marshall, 25, and another individual visited a Federal Firearm Licensee (FFL) in Woodbridge. The individual spent several minutes examining firearms, left the store, and then Marshall attempted to purchase one of the firearms examined by individual. Marshall paid for a semi-automatic pistol capable of accepting a large capacity magazine, and returned the next day to complete ATF paperwork and undergo a background check. After completing the sale, FFL staff members immediately reported the sale to law enforcement as a possible straw purchase. Law enforcement officers located Marshall the same day, and Marshall claimed that he was no longer in possession of the firearm. Marshall admitted to being paid by the individual and another person to purchase the firearm, and that he had not answered the questions on the ATF form truthfully.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by U.S. District Judge Rossie D. Alston, Jr. Special Assistant U.S. Attorney Jennifer Harp prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-240.
Man Sentenced for Heroin Distribution Leading to Overdose DeathRead the Press Release
ALEXANDRIA, Va. – An Alexandria man was sentenced today to 20 years in prison for conspiring to distribute more than a kilogram of heroin, which led to the overdose death of at least one individual.
According to court documents, George Addae, 26, directed a heroin trafficking conspiracy from 2016 through September 2018. Addae obtained wholesale quantities of heroin and repackaged the drug into capsules. He arranged heroin sales with his customers through electronic communications and directed his co-conspirators to deliver the narcotics. On April 2, 2018, Addae personally distributed a mixture of heroin and fentanyl to a man in the Alexandria area of Fairfax County. That man ingested the drug and died from mixed drug intoxication.
In addition to the term of imprisonment, Addae was also ordered to forfeit $100,000.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office; and Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Marc J. Birnbaum prosecuted the case.
This investigation was led by the Fairfax County Police and the FBI Washington Field Office’s Safe Streets/HIDTA Task Force. This task force is composed of FBI Agents and Task Force Officers from the Fairfax County Police, the Prince William County Police, the Loudon County Sheriff’s Office, the Fauquier County Sheriff’s Office, the Alexandria City Police, the Leesburg Police, the Herndon Police, the Vienna Police, and works in conjunction with the ATF, USMS, HSI and other local, state and federal agencies throughout Northern Virginia. The task force investigates the most egregious and violent criminal gangs and street crews operating in the Capital Region.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-188.
Malden Woman Charged with Bank FraudRead the Press Release
BOSTON – A Malden woman was arrested and charged yesterday in connection with a scheme to embezzle more than $795,000 from her employer.
Kayla Figelski, 32, was charged with one count of bank fraud. Figelski was released on conditions following an initial appearance in federal court in Boston yesterday.
As alleged in the criminal complaint, between April 2017 and June 2019, Figelski stole at least $795,000 from her employer, a law firm in Malden. Figelski allegedly forged checks to herself from her employer’s checking accounts, including conservatorship and trust accounts her employer maintained for its elderly clients and their estates, and deposited the checks into her own account, from which she withdrew the funds, or directly cashed the checks. To hide her scheme, Figelski allegedly modified bank statements to make it appear that the checks were written out to legitimate vendors rather than to Figelski.
The charge of bank fraud provides a sentence of up to 30 years in prison, five years of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Valuable assistance was provided by the Malden Police Department. Assistant U.S. Attorney Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Madison Man Sentenced to 11 Years for Bank RobberyRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jeffrey Parker, 40, Madison, Wisconsin, was sentenced yesterday by U.S. District Judge James Peterson to 11 years in prison for bank robbery. Parker pleaded guilty this charge on October 3, 2019.
On August 13, 2019, Parker robbed the Summit Credit Union, in Portage, Wisconsin, while brandishing a gun. During this robbery Parker zip-tied the employees’ hands together to restrain them. Parker then fled in a vehicle which was pursued down Highway 90 by two Wisconsin State Patrol troopers and a Columbia County sheriff’s deputy. Speeds during this chase were in excess of 100 miles per hour.
At Highway 151, Parker veered across several lanes of traffic toward Madison. Parker then sped down East Washington Avenue, going through several red lights, eventually crashing into a FedEx truck, knocking it onto its side. Parker was then taken into custody.
In sentencing Parker, Judge Peterson noted that for a lot of his life Parker had lived like a habitual criminal. Parker had a lengthy criminal history and in 2006 was sentenced to 10 years in federal prison on a drug charge. Because Parker then went on to commit this bank robbery, Judge Peterson said he was a ticking time bomb. Judge Peterson stated that Parker terrorized the victims and endangered many more people during the high speed chase. Judge Peterson said that the main goal of sentencing was to protect the community.
The charge against Parker was the result of an investigation conducted by the Federal Bureau of Investigation and Portage Police Department, with the assistance of the Columbia County Sheriff’s Office, Wisconsin State Patrol, and Madison and Maple Bluff Police Departments. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
Luzerne County Man Sentenced to Six Years’ Imprisonment for Fentanyl and Firearms OffensesRead the Press Release
WILKES-BARRE - The United States Attorney’s Office for the Middle District of Pennsylvania announced that David Banks, age 33, formerly of Sugar Notch, Pennsylvania, entered a guilty plea on December 18, 2019, before Senior U.S. District Court Judge A. Richard Caputo, to charges of possession with intent to distribute fentanyl and possession of a firearm in furtherance of drug trafficking. Banks was then immediately sentenced to six years’ imprisonment.
According to United States Attorney David J. Freed, Banks was indicted by a grand jury in February 2018, after an incident in which police were called to a Wilkes-Barre hotel and found Banks in possession of a firearm and several packets of heroin. In a separate incident, members of the Wilkes-Barre Police Department made a traffic stop of a vehicle in which Banks was an occupant and found Banks in possession of approximately 19 grams of fentanyl for further distribution. Nineteen grams of fentanyl is equivalent to approximately 9,500 individual doses.
The case was investigated by the Bureau of Alcohol, Tobacco and Firearms (ATF) and the Wilkes-Barre Police Department. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: [list partners here]. For more information about Project Guardian, please see https://www.justice.gov/opa/pr/attorney-general-william-p-barr-announces-launch-project-guardian-nationwide-strategic-plan.
# # #
Loveland Man Sentenced to Federal Prison for Obstructing the IRS and Ordered to Pay Nearly $500,000Read the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Adam M. Hausman, age 45, of Loveland, Colorado was sentenced by U.S. District Court Judge R. Brooke Jackson to serve 18 months in federal prison following by 1 year of supervised release for obstructing and impeding the administration of the Internal Revenue Laws. Hausman, who was charged by Information on May 29, 2019 and pled guilty on September 12, 2019, was also ordered to pay $448,794 in restitution to the Internal Revenue Service. IRS-Criminal Investigation joined in making this announcement.
According to the filed information and the stipulated facts in the plea agreement, Hausman was a general contractor who specialized in concrete and framing work with a more recent focus on large commercial jobs, including hotels and apartment complexes. Since 1999, Hausman has filed only three U.S. Individual Income Tax Returns. For several years in which Hausman did not file tax returns, the IRS filed substitute returns for him, resulting in a tax due and owing to the federal government of $199,810.
In 2010, the IRS initiated collection activity for Hausman’s outstanding tax liabilities. When the IRS attempted to collect the taxes owed, the defendant began preventing and impeding the IRS from their tax collection and assessment efforts through various methods, including the submission of false statements to the IRS wherein he failed to disclose all of his assets, filing a false Form 1040 tax return failing to report all of his income, failing to file personal tax returns for multiple years in which he received taxable income, and failing to file corporate tax returns for his business Wyoming Framers Inc.
In addition to these acts taken by Hausman to thwart the IRS, Hausman purposefully kept his assets out of the reach of IRS by operating his business in cash. Hausman admitted to investigators that he did not want to leave his money in the bank because he knew that it would be taken by the IRS. From January 2013 through June 2018, Hausman made cash withdrawals totaling $6,605,586.
“Interfering with the administration of the IRS is a crime, and when you don’t pay, you face financial penalties and prison time,” said U.S. Attorney Jason Dunn. “We all must pay our part. That didn’t happen here, and the defendant will suffer as a result.”
“The law is clear on the issue of taxable income and who is required to file and pay taxes: there is no gray area on the subject,” said Andy Tsui, IRS Criminal Investigation Special Agent in Charge. “The true victims in tax fraud cases are the honest taxpayers who timely and accurately file their tax returns each year. This sentence shows IRS-Criminal Investigation is working hard to make sure all taxpayers file and pay their fair share of taxes.”
This case was investigated by the Internal Revenue Service—Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Tim R. Neff.
Local Compounding Pharmacy and Owners Christopher and Marti Burgess, Agree to Pay over $1.9 Million to Resolve False Claims Act AllegationsRead the Press Release
United States Attorney Richard W. Moore, of the Southern District of Alabama (SDAL), announces that Heritage Compounding Pharmacy, LLC (Heritage), and its pharmacist owners, Christopher and Marti Burgess, of Fairhope, Alabama, have agreed to pay over $1.9 million to resolve allegations that they violated the False Claims Act (FCA) stemming from the payment of illegal kickbacks and the implementation of a refill scheme of medically unnecessary pain creams.
“The U.S. Attorney’s Office is committed to holding health care providers responsible who manipulate and abuse the TRICARE program in order to seek financial gain and who lack regard for TRICARE patients,” said U.S. Attorney Moore.
In a complaint filed on October 29, 2019, the United States alleged that between January 1, 2013 to May 1, 2015, Heritage and its owners submitted false claims to TRICARE, a federally funded health care program for military personnel and their families. The Government alleged that the Defendants, through their “sales representatives”, paid physicians in the form of extravagant dinners and other entertainment perks, to induce prescribing. Heritage employed a sales force to strategically market pre-printed and pre-formulated topical pain cream prescriptions to prescribers in military populated territories such as Kansas City, Southwest Missouri, and Topeka/Manhattan. Many of these creams contained the Schedule III controlled substance Ketamine. Per the complaint, taking advantage of TRICARE’s per ingredient reimbursement policy, without regard to patient need, Heritage implemented a high dose refill scheme costing TRICARE over $27,000.00 per claim for medically unnecessary pain creams prescribed without a valid physician-patient relationship. The local pharmacy shipped large quantities of pre-formulated medication to TRICARE beneficiaries. The U.S. Department of Veterans Affairs (CHAMPVA) also suffered losses from this fraud scheme.
“The Defense Criminal Investigation Service's will tirelessly pursue unscrupulous companies intent on defrauding and cheating TRICARE, the healthcare system serving our military and veterans. DCIS appreciates the U.S. Attorney's Office requiring the owners of Heritage Compounding Pharmacy to remunerate TRICARE for prescriptions that were not medically necessary or even utilized by many of the beneficiaries,” stated Special Agent in Charge Cynthia A. Bruce, DCIS, Southeast Field Office.
The investigation and litigation were conducted by the United States Attorney’s Office -SDAL, DCIS and CHAMPVA. The FCA claims settled are allegations only, and there has been no determination of liability. The case is captioned U.S. v. Heritage Compounding Pharmacy, LLC, et al., Civil Action No.19-870-B (S.D. Ala.).
Lincoln Man Sentenced for Multi-City Violent Crime SpreeRead the Press Release
United States Attorney Joe Kelly announced that Amir Muhammad, age 54, was sentenced in federal court today in Omaha, Nebraska, for two counts of brandishing a firearm and two counts of robbery. Chief United States District Court Judge John M. Gerrard sentenced Muhammad to 28 years of imprisonment. There is no parole in the federal system. After completing his term of imprisonment, Muhammad will begin a 5-year term of supervised release.
On September 21, 2018, Muhammad robbed the Max I. Walker at 9211 Maple Street, Omaha, Nebraska. He entered the store, claimed to have a knife, demanded money from the clerk and threatened to cut the clerk if he wasn’t provided money. He was given money and left the store.
Muhammad robbed P.L. Jewelers in Lincoln, Nebraska, on October 1, 2018, by entering the store, threatening to shoot the owner of the store, demanding money and striking him in the head with a hard object. He left the store after taking a number of pieces of jewelry. On October 5, some of the items taken were found in a residence at which Muhammad had been staying.
On October 3, 2018, Muhammad robbed the Juice Stop at 11910 Standing Stone Drive, Gretna, by entering the store, brandishing a firearm to the clerk, and demanding money. After obtaining less than $300, he ran out of the store.
On October 5, 2018, Muhammad brandished a firearm when he carjacked an employee leaving Bergan Mercy Hospital. As she was walking toward her car, Muhammad approached her from behind, pushed her over the center console and got into the driver’s seat. Throughout the encounter he was pointing a gun at her. They fought over the gun and she was able force him to drop it, after which she ran from the car back to the hospital. Muhammad took her keys and her bag, leaving the car in the parking lot.
A little more than an hour later, Muhammad cashed a check from the victim’s account, made out to him, at a local bank. His photo was obtained from the bank and his identity was discovered. Throughout the day, metro area law enforcement worked together tracking down leads to Muhammad’s whereabouts. He was ultimately found at a trailer park in Council Bluffs, Iowa and arrested. At the time of his arrest, he was carrying a bag. In the bag was the carjacking victim’s wallet.
U.S. Attorney Kelly praised the bravery of the victims during their ordeals, their willingness to cooperate with prosecution, and the tenacity of law enforcement in capturing Muhammad. “We aggressively prosecute violent offenders and for the next 28 years, this violent offender will not be able to scare, threaten and intimidate members of our communities.”
The FBI Great Plains Violent Crime Task Force, comprised of FBI Agents, Omaha Police Department Detectives, Nebraska State Patrol Investigators and Papillion Police Department Detectives, investigated the case and was assisted by Omaha Police robbery unit, Carter Lake Police Department, Pottawattamie County Sheriff’s Department.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Terrell B. Sullivan, 53, of Lincoln, Nebraska, was sentenced on December 19, 2019, to 21 years and 10 months (262 months) in prison for conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine mixture. There is no parole in the federal system. Sullivan will serve five years on supervised release after the prison term.
Information obtained by law enforcement indicated that Sullivan was responsible for the distribution of at least 500 grams (approximately 18 ounces) of methamphetamine in the Lincoln area between January 1, 2017, and August 30, 2018. During a search of Sullivan’s residence in October of 2017, narcotics investigators and Nebraska Parole officers found a digital scale, packaging materials and a small amount of methamphetamine in Sullivan’s bedroom.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force, consisting of the Lincoln Police Department, Lancaster County Sheriff’s Department, University of Nebraska-Lincoln Police Department and Nebraska State Patrol.
Lawrence Man Charged with Fentanyl TraffickingRead the Press Release
BOSTON – A Lawrence man has been indicted by a federal grand jury in Boston in connection with drug trafficking activities involving fentanyl.
Cecilio Guzman, 27, was indicted on Dec. 18, 2019, on one count of distribution and possession with intent to distribute 40 grams or more of fentanyl. Guzman was previously charged by complaint and arrested by state authorities on Nov.20, 2019. He is currently in federal custody.
According to court documents, it is alleged that Guzman arranged to sell 120 grams of fentanyl to a cooperating witness for the government. On Nov. 20, 2019, Guzman met with that witness in Lawrence, sold him the fentanyl, and was subsequently arrested.
The charge of distribution and possession with intent to distribute more than 40 grams of fentanyl carries a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement today. The investigation was conducted with the assistance of the Andover, Haverhill, Lawrence, Lowell, and Wilmington Police Departments. Special assistance was provided by the Essex District Attorney’s Office. Assistant U.S. Attorney Stephen Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Kentucky Woman Sentenced to 180 Months in Prison for Sex Trafficking Two VictimsRead the Press Release
U.S. District Court Judge Rebecca Grady Jennings of the Western District of Kentucky sentenced Cleoretta Allen, 41, of Louisville, Kentucky, yesterday to serve 180 months in prison and 20 years of supervised release.
According to court filings, Allen operated the “Playhouse of Domination” – a BDSM (bondage, discipline, sadism-submission, masochism) business from an apartment she rented in Louisville. The business provided non-sexual BDSM services to adult clients. When two of Allen’s top employees quit in 2017, her business revenues suffered, and so Allen expanded her business to involve illegal prostitution services. Over the next several months, Allen used violence, threats, and intimidation to coerce two young women to provide commercial sex acts for Allen’s clients in the Louisville area. Some of Allen’s violent conduct against one of the victims was so severe as to require medical treatment at a hospital. Allen posted commercial sex advertisements for the victims on the internet, and on one occasion transported the two women from Kentucky to Georgia to engage in prostitution.
“The Department of Justice is committed to holding sex traffickers responsible for their horrendous and immoral crimes as demonstrated by yesterday’s sentence,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Division will continue to prosecute human trafficking in all its forms and seek justice on behalf of victims and survivors.”
“Those who commit crimes of this nature lose sight of the humanity of their victims; that they are someone’s daughter, a person with dignity and value, someone’s little girl,” said U.S. Attorney Russell Coleman for the Western District of Kentucky. “As evidenced by a sentence of a decade and a half in federal prison with no parole, this foul conduct will not be tolerated in the Western District of Kentucky.”
"As evidenced by yesterday’s sentencing, the FBI, along with our state and local partners, is committed to bringing to justice those that exploit our most vulnerable citizens. Investigating all forms of human trafficking is a priority of the FBI and we will continue to vehemently pursue investigations into sex trafficking on behalf of victims and survivors alike," said Special Agent in Charge Robert Brown of the FBI’s Louisville Field Office.
Restitution to human trafficking victims is mandatory under applicable federal law, and the district court will determine appropriate restitution at a future date.
The FBI in Louisville, Kentucky, the Louisville Metro Police Department, and the Jefferson County Sheriff’s Office investigated this case. It was prosecuted by Assistant U.S. Attorney Amanda E. Gregory of the Western District of Kentucky, and Special Litigation Counsel William E. Nolan and Trial Attorney Kate Alexander of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Justice Department Settles Immigration-Related Discrimination Claim Against Staffing CompanyRead the Press Release
The Department of Justice announced today that it reached a settlement agreement with Adecco USA Inc. (Adecco), one of the largest staffing companies in the United States. The settlement resolves a claim that Adecco’s Gardena, California office violated the anti-discrimination provision of the Immigration and Nationality Act (INA) by discriminating against a lawful permanent resident and other work-authorized non-U.S. citizens when verifying their work authorization. The settlement also resolves allegations that when using employment eligibility verification (EEV) software, the company requested unnecessary work authorization documents from non-U.S. citizens because of their citizenship status.
“Employers must ensure that their onboarding software is compliant with relevant laws, and cannot make unnecessary demands for work authorization documents because of someone’s citizenship status,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We commend Adecco and are pleased that shortly after learning of the Department’s investigation, the company re-hired an affected worker before he missed work, and took additional steps to avoid unlawful discrimination.”
The Department’s investigation began when a lawful permanent resident complained about discrimination that occurred at Adecco’s Gardena, California location. Upon being hired, the worker showed the company his valid foreign passport with a stamp denoting his permanent resident status. Although this documentation is sufficient under federal law to establish identity and permission to work in the United States, the Adecco employee responsible for hiring the worker was unfamiliar with it, rejected the documentation, and asked the worker to present his permanent resident card instead. The worker did not have a permanent resident card so he went home upset that he would not be able to get the job even though he had permission to work in the United States. After the Department opened its investigation, Adecco took immediate corrective action and, among other things, hired the permanent resident without delay for the position he originally sought.
The Department’s investigation also revealed that an employee in Adecco’s Gardena office routinely requested that non-U.S. citizen new hires produce specific documentation issued by the Department of Homeland Security to prove their work authorization, even when they had already provided sufficient proof of their identity and work authorization. The Department also concluded that Adecco unnecessarily reverified the work authorization of certain non-U.S. citizen employees because of their immigration status. The Department’s investigation determined that the commercial EEV software Adecco used prompted Adecco employees to initiate unnecessary employment eligibility reverification based exclusively on workers’ citizenship status.
Federal law allows all work-authorized individuals, regardless of citizenship or immigration status, to choose which valid, legally acceptable documents to present to demonstrate their ability to work in the United States. Moreover, under the anti-discrimination provision of the INA, employers cannot request more or different documents than necessary to prove work authorization because of employees’ citizenship, immigration status, or national origin.
Under the settlement, Adecco will pay $67,778 in civil penalties to the United States, ensure that its Form I-9 software complies with all relevant rules and regulations, and submit to departmental monitoring and reporting requirements. Additionally, Adecco will ensure that relevant employees attend a training the Civil Rights Division approves and take a knowledge assessment tool to demonstrate their understanding of relevant rules.
The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship, immigration status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
More information on how employers can avoid discrimination in the Form I-9 and E-Verify processes is available here. For information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee; discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status, or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.
Justice Department Examines Priority Needs of Forensic Laboratories and Medical Examiner and Coroner OfficesRead the Press Release
The Office of Justice Programs’ National Institute of Justice (NIJ) today published the findings of a two-year assessment that examined the personnel, workload and equipment needs of public crime laboratories and medical examiner and coroner offices.
“A strong network of crime labs, medical examiners and coroners is central to a well-functioning justice system,” said Office of Justice Programs Principal Deputy Assistant Attorney General Katharine T. Sullivan. “This report serves as a blueprint for federal, state, local and tribal officials as they work to build their forensic capabilities, staff their agencies and apply evidence-based practices to their most pressing public safety challenges.”
The Department of Justice’s Needs Assessment of Forensic Laboratories and Medical Examiner and Coroner Offices provides guidance and possible solutions through promising and evidence-based practices to address needs identified from stakeholders and experts from the field. It also addresses special topics such the opioid crisis, digital and multimedia evidence, sexual assault casework, forensics for tribal communities, and mass disaster and critical incident preparedness.
The report emphasizes the importance of systems-based approaches involving coordination and collaboration between forensic laboratories, law enforcement, legal professionals and other stakeholders. The report also identifies ways to address the challenges faced by forensics laboratories, such as sufficient and consistent funding; strategies and approaches to addressing staffing and personnel shortages; and activities to support the advancement of quality assurance programs.
To assess topics, NIJ held listening sessions with forensic science professionals and subject matter experts from forensic disciplines across the criminal justice system to inform and provide recommendations to the report. The feedback from the listening sessions, stakeholder comments and literature reviews were compiled into the assessment.
This assessment is a product of the Department’s ongoing mission to facilitate coordination and collaboration on forensic science within the Department, across the federal government, and with state, local and tribal entities.
To view the report, see https://www.justice.gov/olp/forensic-science#needs
More information on NIJ’s programs is located here: www.nij.ojp.gov.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training and technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Justice Department Announces Addendum to Swiss Bank Program Category 2 Non-Prosecution Agreement with Coutts & Co Ltd.Read the Press Release
The Department of Justice announced today that it has signed an Addendum to a non-prosecution agreement with Coutts & Co Ltd. (Coutts), a private Swiss bank headquartered in Zurich. The original non-prosecution agreement was signed on Dec. 23, 2015. At that time, Coutts reported that it held and managed 1,337 U.S. related accounts, with assets under management exceeding $2 billion, and paid a penalty of $78,484,000. In reaching today’s agreement, Coutts acknowledges that it should have disclosed additional U.S.-related accounts to the Department at the time of the signing of the non-prosecution agreement.
“This agreement reflects our commitment to ensuring that foreign banks that participated in the Swiss Bank Program fully comply with their obligations to disclose accounts in which U.S. taxpayers have direct or indirect interests,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. “When any person or entity makes false, incomplete, or misleading disclosures to the Department, the Department will hold those persons or entities accountable.”
The Swiss Bank Program, which was announced on Aug. 29, 2013, provided a path for Swiss banks to resolve potential criminal liabilities in the United States relating to offshore banking services provided to United States taxpayers. Swiss banks eligible to enter the program were required to advise the Department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. As participants in the program, they were required to make a complete disclosure of their cross-border activities, provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers had a direct or indirect interest, cooperate in treaty requests for account information, and provide detailed information about the transfer of funds into and out of U.S.-related accounts, including undeclared accounts, that identifies the sending and receiving banks involved in the transactions.
The Department executed non-prosecution agreements with 80 banks between March 2015 and January 2016. The Department imposed a total of more than $1.36 billion in Swiss Bank Program penalties. Pursuant to today’s agreement, Coutts will pay an additional sum of $27,900,000 and will provide supplemental information regarding its U.S.-related account population, which now includes 311 additional accounts.
Every bank that signed a non-prosecution agreement in the Swiss Bank Program had represented that it had disclosed all known U.S.-related accounts that were open at each bank between Aug. 1, 2008, and Dec. 31, 2014. Each bank also represented that it would, during the term of the non-prosecution agreement, continue to disclose all material information relating to its U.S.-related accounts. In reaching today’s agreement, Coutts acknowledges that there were additional U.S.-related accounts that it knew about, or should have known about, but that were not disclosed to the Department at the time of the signing of the non-prosecution agreement. Coutts has fully cooperated with the Department with respect to the additional U.S.-related accounts.
Principal Deputy Assistant Attorney General Zuckerman thanked Thomas J. Sawyer, Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program, Senior Litigation Counsel Nanette L. Davis, and Attorney Kimberle E. Dodd of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Jury convicts Missoula man on drug trafficking, firearms crimesRead the Press Release
MISSOULA – A jury on Wednesday convicted a Missoula man accused of trafficking methamphetamine in the community of multiple drug and firearms crimes, U.S. Attorney Kurt Alme said today.
After a three-day trial that began on Dec. 16, the jury found Allan Roy Goodman, 43, guilty on all counts, including conspiracy to distribute meth, possession with intent to distribute meth, distribution of a controlled substance, possession a firearm in furtherance of a drug trafficking crime, prohibited person in possession of a firearm and obstruction of justice.
Goodman faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release on the conspiracy count and a minimum mandatory five years to life consecutive to any other sentence, a $250,000 fine and five years of supervised release on possessing a firearm in furtherance of drug trafficking.
U.S. District Judge Donald W. Molloy presided and set sentencing for April 2, 2020. Goodman was detained.
“Mr. Goodman was a major drug dealer in the community and posed a significant threat to public safety and to witnesses in the case. The community will be safer with him behind bars. I want to thank Assistant U.S. Attorney Tara Elliott, the FBI’s Montana Regional Violent Crime Task Force, the Missoula HIDTA Task Force and the Northwest Drug Task Force for their work on this case,” U.S. Attorney Alme said.
At trial, the prosecution presented evidence that Goodman was a prolific meth and heroin dealer. On three separate occasions, Goodman sold drugs to a confidential source who was working for the Missoula High Intensity Drug Trafficking Area Task Force. Two witnesses testified about selling Goodman a .380-caliber pistol for heroin.
Law enforcement served a federal search warrant on Sept. 12 for Goodman’s garage and recovered two firearms. Goodman had been convicted of felonies on two prior occasions.
The prosecution also said evidence showed that in early October, Goodman, along with another person, assaulted a cooperating witness while all were incarcerated in Shelby. Goodman indicated to the witness during the assault that he had reviewed discovery in his case that showed the witness had spoken to law enforcement about Goodman’s drug dealing.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the FBI’s Montana Regional Violent Crime Task Force, the Missoula HIDTA Task Force and the Northwest Drug Task Force.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Dec. 20 was:
Dale Lee Musgrave, 50, of Pompeys Pillar, on charges of conspiracy to possess with intent to distribute cocaine and possession with intent to distribute cocaine. If convicted of the most serious crime, Musgrave faces a maximum 20 years in prison, a $1 million fine and three years of supervised release. Musgrave was released pending further proceedings. The case was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force. Pacer case reference. 19-159.
Appearing on Dec. 17 on a criminal complaint:
Tyler Fleming, 37, of Billings, on charges of possession with intent to distribute methamphetamine. If convicted of the most serious crime, Fleming faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Fleming was detained pending further proceedings. The case was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force. Pacer case reference. 19-78.
Appearing on Dec. 16 was:
Ryan Edwin Hewitt, 35, of Wenatchee, WA, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Hewitt faces a minimum mandatory five years to 40 years in prison, a $5 million fine and at least five years of supervised release. Hewitt was detained pending further proceedings. The case was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force. Pacer case reference. 19-107.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Dec. 18 was:
Austin Kade Goings, 22, of Browning, on charges of sexual abuse of a minor and aggravated sexual abuse. If convicted of the most serious crime, Goings faces a maximum life in prison, a $250,000 fine and five years of restitution. Goings was detained pending further proceedings. The case was investigated by the Bureau of Indian Affairs and Blackfeet Law Enforcement Services. Pacer case reference. 19-83.
Appearing on a criminal complaint was:
Eric Shawn Roasting Stick, 37, of Box Elder, on charges of assault with a dangerous weapon; domestic assault resulting in substantial bodily injury and domestic assault by habitual offender. If convicted of the most serious crime, Roasting Stick faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Roasting Stick was detained pending further proceedings. The FBI investigated the case. Pacer case reference. 19-97.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Individual Indicted and Arrested for Smuggling Counterfeit and Misbranded Products from ChinaRead the Press Release
SAN JUAN, Puerto Rico – On December 12, 2019, a federal grand jury in the District of Puerto Rico returned an indictment against Sameer Bani, charging him with seven counts, including: smuggling, receipt in interstate commerce and proffered delivery of misbranded articles, possession with intent to distibute a controlled substance, trafficking in counterfeit goods, and international money laundering, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. The U.S. Food and Drug Administration’s (FDA), Office of Criminal Investigations is in charge of the investigation with the collaboration of Homeland Security Investigations. Bani was arrested on Monday, December 16, and was granted bail while he awaits trial.
The indictment alleges that on April 2018, defendant Bani fraudulently and knowingly received, concealed, sold, and facilitated the transportation, concealment, and sale of merchandise contrary to law after importation, namely drugs imported from China that were misbranded in violation of Title 21, United States Code, Section 352(a), in that the drugs’ respective labeling was false or misleading for failure to properly declare active pharmaceutical ingredients, knowing that such merchandise had been imported and brought into the United States contrary to law.
The merchandise that the defendant illegally imported from China was: Fruta Planta weight loss product containing undeclared sibutramine and phenolphthalein APIs; Li Da DAI DAI HUA weight loss product containing undeclared sibutramine, phenolphthalein, and sildenafil APIs; SlimExtreme Gold weight loss product containing undeclared phenolphthalein API; Enhanced Vegetal Vigra, Horney Lion, Plant Vigra, Paradise Ultra Plus, Lang Yi Hao, ExtenZe, Shanghai Ultra X, Suerosexx, Lobo, and La Pepa Negra male enhancement products containing undeclared sildenafil API.
The indictment further alleges that defendant Bani, aided and abetted by others known and unknown to the Grand Jury, did intentionally traffic in goods and knowingly used a counterfeit mark on and in connection with such goods, namely counterfeit Durex® condom foil wrappers.
Bani made three payments for the misbranded products via electronic transmissions of funds, each payment constituting a separate and distinct international money laundering violation.
“This defendant sold counterfeit and misbranded weight loss pills and misbranded male-enhancement pills. Some of these medications contained drugs that the consumers were not aware of and could endanger their health,” said United States Attorney, W. Stephen Muldrow. “The U.S. Attorney’s Office will continue to work with the FDA to protect the public from adulterated and misbranded products, and to ensure that dietary supplement sellers provide accurate information about their products.”
“American consumers must have confidence that the FDA-regulated products they are receiving are authentic and properly labeled with truthful information,” said Justin D. Green, Special Agent in Charge, FDA Office of Criminal Investigations Miami Field Office. “Today’s announcement serves as a reminder of the FDA’s continued focus on those who put profits ahead of the public health by distributing misbranded drugs and counterfeit devices.”
Assistant United States Attorney Edward Veronda is in charge of the prosecution of the case. If convicted the defendant faces a maximum sentence of up to 20 years in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
# # #
Idaho Man Arrested and Charged with Soliciting Child Sex Abuse Images over the InternetRead the Press Release
Jacksonville, Florida – Aaron Kirk Woolman (58, Hagerman, ID) has been arrested and charged with soliciting child sex abuse images over the internet and via text message. He faces a minimum mandatory penalty of 15 years, and up to 30 years, in federal prison. Woolman made his initial appearance in Boise, Idaho on December 13, 2019, and currently remains in custody pending further proceedings in Jacksonville.
According to court documents, on August 7, 2019, an undercover FBI agent in Jacksonville, who was posing as a parent of a 9-year-old “child,” made online contact with Woolman, who was using the user name “AWOOL61,” in an online chat application. During an online chat session, Woolman repeatedly asked for photos of the purported “child.” Between August 14 and August 21, 2019, Woolman and the undercover agent engaged in online conversation during which Woolman solicited the undercover agent to send pornographic images of the “child.”
Additionally, Woolman engaged in text message conversations with a second undercover FBI agent who was posing as the 9-year-old child. During these conversations, Woolman solicited the “child” to engage in sexually explicit conduct, produce pornographic images of this conduct, and send these images to him. Woolman tried to convince the “child” to comply with his requests by sending the “child” explicit images of himself along with a video of a female engaged in sexual acts.
This case was investigated by the Federal Bureau of Investigation in Jacksonville and Boise, Idaho, as well as the Gooding County (ID) Sheriff’s Office and the Twin Falls (ID) Police Department. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
Husband and Wife Sentenced to Prison for Roles in $38 Million Health Care Fraud and Wire Fraud SchemeRead the Press Release
Rodolfo Pichardo, 71, of Hialeah, Florida was sentenced to more than 15 years in prison for masterminding a $38 million health care fraud and wire fraud scheme. His wife Marta Pichardo, 66, was sentenced to 8 years in prison for her role in the scheme.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Omar Pérez Aybar, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office, and George L. Piro, Special Agent in Charge, FBI’s Miami Field Office made the announcement.
Rodolfo Pichardo and Marta Pichardo previously pled guilty to conspiracy to commit health care fraud and wire fraud. On December 4, 2019, Rodolfo Pichardo, was sentenced by U.S. District Judge Rodolfo A. Ruiz to 188 months in prison, to be followed by 3 years of supervised release. He was ordered to pay $33,841,576 in restitution. Today, Marta Pichardo was sentenced by Judge Ruiz to 96 months in prison, to be followed by 3 years of supervised release. She was ordered to pay $10,482,178 in restitution.
According to court documents, after arriving in the United States from Cuba on a raft seeking refuge and a better life, the Rodolfo Pichardo and his wife Marta Pichardo settled in Miami-Dade County, Florida where they proceeded to build a vast empire of fraud, consisting of at least six fraudulent home health agencies, three fraudulent therapy staffing companies, and two fraudulent pharmacies. Each of these entities purportedly provided home health services, therapy services, and prescription drugs, respectively, to qualified Medicare beneficiaries, though in fact and as both Rodolfo and Marta Pichardo knew, they did not.
From May 2010 through September 2016, the Pichardos and their co-conspirators used this empire to submit more than $38 million in false and fraudulent claims to Medicare, for which the trust-based program then paid out more than $33 million. The Pichardos then used this money to purchase multiple properties, high-end vehicles, expensive jewelry, plane tickets, vacations, cosmetic procedures, and more, both for themselves and their family members.
As part of the scheme, Rodolfo Pichardo offered and paid kickbacks, both by cash and by check, to numerous patient recruiters, in exchange for the referral of Medicare beneficiaries to home health agencies that he owned. The conspirators also offered and paid cash kickbacks to owners and operators of multiple Miami-Dade medical clinics, in return for acquiring medically unnecessary home health prescriptions for the recruited Medicare beneficiaries. These prescriptions were then used by the Pichardos’ various home health agencies and pharmacies to bill Medicare for purported services and pharmaceutical drugs that were provided to allegedly qualified Medicare beneficiaries
During the long-running scheme, the Pichardos took several calculated steps to conceal the fraud and avoid detection, including using nominee owners, changing names and locations of their fraudulent entities, and creating shell companies to conceal the receipt of the fraud proceeds, hide assets and transactions, and divert proceeds for both personal use and to further the fraud.
Additional co-conspirators previously pleaded guilty and were sentenced in connection with the scheme, including family member Jesus Fonseca, who was sentenced earlier this year by Judge Ruiz to 63 months in prison.
U.S. Attorney Fajardo Orshan commended the investigative efforts of FBI and HHS-OIG. This case was prosecuted by Assistant U.S. Attorney Anne P. McNamara. Assistant U.S. Attorney Adrienne Rosen is handling the asset forfeiture aspects of the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
High Ranking Gang Member Receives 23 Years in Federal Prison and Armed Gang Member Receives More Than 12 Years in Federal PrisonRead the Press Release
WILMINGTON – United States Attorney Robert J. Higdon, Jr. announced that United States District Judge James C. Dever III sentenced GARRY “RATCHET” HINES, age 25, of New Hanover County to 276 months imprisonment, followed by 3 years of supervised release. He also sentenced SAVON HARDAWAY, 23, of New Hanover County to 151 months imprisonment followed by 3 years of supervised release.
On November 14, 2018, HINES pled guilty to three counts of distribution of a quantity of heroin. On August 5, 2019, HARDAWAY pled guilty to three counts of distribution of heroin and possession of a firearm by a convicted felon.
The Federal Bureau of Investigation’s Safe Streets Task Force, which is made up of FBI Special Agents, Wilmington Police Department investigators and New Hanover County Sheriff's Office detectives began this investigation in March 2018. The task force uncovered an enormous amount of evidence that HINES and HARDAWAY were part of the Nine Trey sect of the United Blood Nation responsible not only for the sale of narcotics in Wilmington, but also multiple violent acts.
Between March 29 and July 21, 2018, the task force made several controlled purchases of heroin and/or a heroin/fentanyl mixture from HINES or someone sent by HINES from several locations in Wilmington, North Carolina.
On August 21, 2018, law enforcement developed information, which led them to believe that HINES and others were gathering up guns in order to take part in a retaliatory shooting of another group. After receiving this information, law enforcement conducted surveillance on the residence on North 5th Street. They observed HARDAWAY and another male exit the residence and get into a car. A traffic stop was conducted. HARDAWAY fled and attempted to hide a stolen .380 handgun and a .45 caliber handgun. Law enforcement recovered both handguns. Ballistics showed the .45 caliber handgun had previously been used in prior shootings. The other person had a stolen 9mm handgun on his person. This person has a pending federal indictment on another firearms charge.
On August 31, 2019, a federal search warrant was served on North 5th Street in Wilmington. HINES and Antwine “Big World” Lucas were arrested. Law enforcement found a handgun underneath the couch where HINES was seated when the search warrant was served. HINES was also in possession of baggies that contained a mixture of fentanyl and methamphetamine. Previously, Lucas was sentenced in federal court for his criminal conduct in this organization and received a sentence of 188 months in federal prison.
Mr. Higdon commented: “Our effort to Take Back North Carolina was born out of the violence and drug trafficking issues in Wilmington and across our District. And this case is just an example of why we are committed to the defeat of criminal gang activity. Those who terrorize our communities and who fill them with illegal drugs can expect the same treatment as these defendants. We will take our communities back.”
"The FBI has a message for gang members involved in violent criminal activities; we will use every lawful tool available to hold you accountable for your crimes. No matter how powerful you believe you are, you cannot win when the FBI and our law enforcement partners join forces to fight crime in North Carolina," said John Strong, FBI Special Agent in Charge.
This case is part of an FBI lead OCDETF operation “DodgeBall”. This is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). This investigation focused on members of the Nine Trey sect of the United Blood Nation in Wilmington who were involved in the distribution of heroin, possession of firearm and associated violence.
This case is a classic example of the combining of an OCDETF operation with our Take Back North Carolina Initiative. Wilmington Police Task Force Officers were able to identify members and associates of this violent drug gang and then partner with the FBI and the United States Attorney’s Office to develop a strategy to dismantle this organization. After being armed with this local intelligence, law enforcement was able to utilize the substantial resources and tools of the federal government to help break the back of this group which had been terrorizing Wilmington. The success of this case would not have been possible without these partnerships.
The Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina emphasizes a regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Federal Bureau of Investigation Safe Street Task Force, the Wilmington Police Department and the New Hanover County Sheriff’s Office conducted the investigation of this case. Assistant United States Attorney Timothy Severo prosecuted the case on behalf of the government.
Hialeah Check Casher Sentenced to 13 Years in Prison for Laundering over $100 million in Healthcare, Mortgage and Identity Theft Tax Refund Fraud ProceedsRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, FBI’s Miami Field Office announced that Evelio Suarez, a Hialeah check casher, was sentenced to prison today for laundering over $100 million in proceeds of healthcare, mortgage and identity theft tax refund fraud.
Suarez, 53, of Miramar, Florida, previously pled guilty to one count of money laundering (Case No. 18cr20669). He was sentenced by U.S. District Judge Robert N. Scola, Jr. to 156 months of prison, to be followed by 3 years of supervised release. He was also ordered to forfeit $149,048,366.
According to the agreed upon factual proffer and court documents, from 2013 through 2015, Suarez controlled a number of check-cashing stores located in Hialeah, Florida (the “Suarez Stores”). During this period, the defendant caused the cashing of checks at the Suarez Stores that were the proceeds of fraudulent activity, including identity-theft tax refund fraud, health care fraud, and mortgage fraud. On numerous occasions, Suarez cashed individual fraudulent Medicare checks exceeding $200,000 and individual U.S. Treasury tax refund checks exceeding $150,000. Suarez knew that the checks had been obtained from fraudulent activity and, on occasion, knowingly accepted fake identification documents.
According to the factual proffer, because Suarez knew the funds came from illegal sources, the defendant charged an additional fee on top of the standard fee charged by the check-cashing stores. Suarez charged this as a personal fee that he took in cash from the stores. Suarez also often withheld money from the checks and falsely claimed to the scammers that the money from their checks had been frozen by the banks or the authorities.
According to the factual proffer, Suarez knowingly cashed at least $100 million in checks that came from either identity-theft tax refund fraud, healthcare fraud or mortgage fraud.
U.S. Attorney Fajardo Orshan commended the investigative efforts of IRS-CI and FBI in this matter. The case was prosecuted by Assistant U.S. Attorneys Michael N. Berger and Yisel Valdes. Assistant U.S. Attorneys Annika M. Miranda and Adrienne Rosen are handling the asset forfeiture aspects of the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Heroin Stash House Operator Pleads GuiltyRead the Press Release
NEWPORT NEWS, Va. – A Newport News man pleaded guilty today to conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and a quantity of fentanyl.
According to court documents, Dujuan Walters, 34, maintained a stash house at his residence in Newport News, at the direction of co-conspirators. Walters and his co-conspirators used his residence to store heroin, fentanyl, a hydraulic press, and other equipment used in the preparation and distribution of controlled substances. In December 2018, law enforcement executed a search warrant at Walters’s residence, where they recovered the aforementioned items, as well as a kilogram of heroin, additional black tar heroin, and liquid fentanyl.
Walters pleaded guilty to conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and a quantity of fentanyl and faces a mandatory minimum term of 10 years imprisonment and a maximum of life imprisonment when sentenced on April 17, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Jim Stitzel, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; Colonel Gary T. Settle, Superintendent of Virginia State Police; Steve R. Drew, Chief of Newport News Police; and Terry L. Sult, Chief of Hampton Police Division, made the announcement after Magistrate U.S. District Judge Robert J. Krask accepted the plea. Assistant U.S. Attorneys Amy E. Cross, Peter G. Osyf, and Kevin P. Hudson are prosecuting the case.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Cookout. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-47.
Hedge Fund Manager Sentenced to More Than 7 Years in Federal Prison in Connection with Multi-Million Dollar SwindleRead the Press Release
CHICAGO — A Connecticut investment manager has been sentenced to more than seven years in federal prison for operating a multi-million dollar fraud scheme that swindled his friends and family members, including victims in the Chicago area.
ALVIN WILKINSON, the founder of Chicago Index Partners LP and Wilkinson Financial Opportunity Fund LP, both based in Sharon, Conn., persuaded at least 30 individuals, many of whom were his friends, family members and colleagues, to invest approximately $13.5 million in his funds. Wilkinson, who previously served as a director at the Chicago Board Options Exchange, claimed he would trade a portfolio of financial instruments on their behalf, including options and futures, and that his trading strategy made money regardless of market conditions.
In reality, Wilkinson did not maintain trading accounts for the funds, and he did not use investor funds to trade in options and futures. Wilkinson often used investor funds to cover personal expenses, and he later used the money to pay earlier investors through Ponzi-type payments. His fraud scheme began no later than 1999 and continued until 2016.
Wilkinson, 61, of Sharon, Conn., pleaded guilty earlier this year to one count of wire fraud. U.S. District Judge Sharon Johnson Coleman on Thursday sentenced Wilkinson to seven years and four months in prison and ordered him to pay $8.032 million in restitution to the victims.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. The Commodity Futures Trading Commission, which filed a civil enforcement lawsuit against Wilkinson, provided valuable assistance.
“Defendant was a fiduciary who was supposed to act in investors’ best interest at all times,” Assistant U.S. Attorney Nicholas J. Eichenseer argued in the government’s sentencing memorandum. “While defendant reassured investors with lie after lie, he was living lavishly courtesy of the millions he was secretly diverting to himself.”
Guatemalan National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Guatemalan national wanted for arrest in his home country of Guatemala was sentenced today in federal court in Boston.
Francisco Cuxum Alvarado, a/k/a Francisco Cuxun-Alvarado, 64, was sentenced by U.S. District Court Judge Indira Talwani to six months in prison. Following his sentence, Cuxum Alvarado will be subject to extradition to Guatemala. In September 2019, Cuxum Alvarado pleaded guilty to one count of illegal reentry into the United States, and has been detained since he was indicted in May 2019.
“The United States will not serve as a safe haven for individuals sought for prosecution abroad,” said United States Attorney Andrew E. Lelling. “After service his sentence in the U.S., Mr. Cuxum Alvarado will be returned to Guatemala to face prosecution for his alleged crimes.”
“Cuxum Alvarado will now face removal to his own country,” said Jason Molina, Acting Special Agent in Charge of Homeland Security Investigation in Boston. “By holding Cuxum Alvarado accountable for his violations of U.S. immigration law, today’s sentencing allows for the next critical stage in this case. That’s a fitting next step in the search for justice sought by Guatemala.”
The prosecutor presented evidence that Cuxum Alvarado was implicated in crimes against humanity by participating in the mass sexual assault of indigenous women in Guatemala in the early 1980s. The Guatemalan government obtained an INTERPOL Red Notice in 2018 for Cuxum Alvarado’s arrest, which is a request to law enforcement agencies worldwide to locate and provisionally arrest suspects pending extradition to the jurisdiction in which they are charged.
On April 30, 2019, Cuxum Alvarado was located in Waltham and arrested. At the time of his arrest, Cuxum Alvarado was unlawfully in the United States. He previously unlawfully entered the country in March 2004 in Arizona, and was ordered to be removed.
U.S. Attorney Lelling and Acting HSI Boston SAC Molina, made the announcement today. The Waltham Police Department and the HSI Attaché in Guatemala City, Guatemala assisted in the investigation. Assistant U.S. Attorney Scott L. Garland, Deputy Chief of Lelling’s National Security Unit, prosecuted the case.
Georgia Man Sentenced to One Year in Prison for Exploiting Office Rewards Program, Stealing Almost $300K Worth of PrintersRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced today that Sung W. Sohn, 50, of Burford, Georgia was sentenced to 12 months’ and one day imprisonment, and ordered to pay $224,000 in restitution by Chief United States District Judge Juan R. Sánchez for the interstate transportation of stolen property related to a scheme he perpetrated to steal and ship hundreds of office printers by misusing a product rewards program.
In September 2019, the defendant pleaded guilty to an Information charging him with interstate transportation of stolen property in 2017 and 2018. During this time period, Sohn stole, and then sold and shipped, over 600 office printers by misusing a product rewards program offered to Sohn’s employer by Company 1, a manufacturer of office printers and printer supplies.
Sohn worked in Philadelphia for a company that purchased printers manufactured by Company 1. The company offered reward points to customers that also purchased ink and toner from Company 1. In June of 2017, Sohn used an account number he found on a shipping box and associated it to his employer’s rewards account with Company 1. The account number was not for an account actually used by the employer, and it generated far more points than would be possible given his employer’s ink and toner purchases. Sohn then redeemed these improperly obtained reward points in order to receive free printers from Company 1, sold the printers online, and kept the proceeds for his personal use. Sohn fraudulently obtained 604 printers in this way, which was a loss to Company 1 at retail value of $293,000.
“This Office takes white collar fraud and theft offenses very seriously,” said First Assistant U.S. Attorney Williams. “And that’s exactly what this was – it was theft. The defendant took advantage of his position with his employer to improperly hoard rewards points and sell printers to which he was not entitled. We will continue to work with our law enforcement partners to protect innocent individuals and businesses from being victimized by this type of fraud.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Albert S. Glenn.
Georgia Man Sentenced to 10 Years in Federal Prison for Attempting to EnticeRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Douglas Scott Phillips (52, Richmond Hill, GA) to 10 years in federal prison for attempting to entice an 11-year-old child to engage in sexual activity. Phillips was also ordered to serve a 10-year term of supervised release and to register as a sex offender.
Phillips had pleaded guilty on September 11, 2019.
According to court documents, on November 15, 2018, a detective from the St. Johns County Sheriff’s Office engaged in an online undercover operation to identify individuals seeking to meet children for sex. The detective posted a notice on an online bulletin board using the fictitious persona of a “mother” with “a young 11-year-old daughter.” Phillips responded to the notice and confirmed the age of the “daughter.” Phillips indicated that he was “very interested” and sent the “mother” an explicit photo of himself.
Over the next two months, Phillips and the undercover officer had several conversations in which Phillips expressed his desire and intention to engage in sexual activity with the “child.” During the conversations, Phillips instructed the “child” how to masturbate and sent pornographic photos illustrating how to do so. On January 7, 2019, Phillips told the “mother” that he was serious about meeting with the “child” and confirmed that he had texted with the “child” about masturbation.
On January 18, 2019, Phillips was arrested at his home in Georgia. During an interview, Phillips admitted seeing the advertisment and following up “just to see what it was.” He also admitted to engaging in sexual conversation with the “mother” and sending pictures of himself to the “child.”
This case was investigated by the St. Johns County Sheriff’s Office, Homeland Security Investigations, the Liberty County (GA) Sheriff’s Office, and the Bryan County (GA) Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
“HSI, along with our partners at the St. Johns County Sheriff’s Office in Florida, and the Liberty and Bryan County Sheriff’s Offices in Georgia, stopped this predator who attempted to commit vile sexual crimes against a young child,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “Anyone who plans to engage in these horrific acts should be on notice – they will pay a very steep price.”
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Freeport Men Sentenced to Prison on Drug Trafficking ChargesRead the Press Release
ROCKFORD — Two Freeport men were sentenced today in federal court in Rockford on drug trafficking charges.
TERRANCE YOUNG, 46, was sentenced by U.S. District Chief Judge Rebecca R. Pallmeyer to seven and a half years in federal prison. Young pleaded guilty on Sept. 13, 2019, to possessing cocaine with intent to distribute. In a written plea agreement, Young admitted that on Aug. 30, 2018, law enforcement officers executed a search warrant at his home. During the search, officers located and seized approximately 5.5 grams of cocaine in a plastic bag inside of a kitchen cupboard, as well as other drug paraphernalia. Young acknowledged that the cocaine in the cupboard belonged to him and that he possessed it with the intent to distribute it to others. In the dining room adjacent to the kitchen, officers located $3,743 in cash. Young also acknowledged that the cash belonged to him and that it came from the proceeds of drug sales. Young further admitted that he sold cocaine on July 14, 2017, Aug. 15, 2017, Dec. 4, 2017, and Aug. 7, 2018.
In a separate but related case, KYRAN WILLIAMS, 25, was sentenced by U.S. District Judge Philip G. Reinhard to nine years and three months in federal prison. Williams pleaded guilty on Sept. 17, 2019, to possessing crack cocaine with intent to distribute, possessing a firearm in furtherance of a drug trafficking crime, and illegally possessing a firearm as a felon. In a written plea agreement, Williams admitted that on Aug. 30, 2018, law enforcement officers executed a search warrant at Williams’s home in Freeport. Officers found and seized two guns, one with an extended magazine containing 31 rounds and the other with an obliterated serial number, as well as ammunition, a plastic baggie containing crack cocaine, and other drug paraphernalia. Williams also admitted he illegally possessed the firearms as a convicted felon and that he possessed the guns and ammunition found during the search to protect his drug stash and himself during his drug trafficking activity. Williams also admitted that he engaged in drug transactions and sold heroin on April 11, 2017, May 31, 2017, and April 11, 2018, and sold a substance containing both heroin and fentanyl on June 13, 2018.
The sentencings were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; Brendan F. Kelly, Director of the Illinois State Police; and Matt Summers, Freeport Police Chief. The investigation was conducted by the Rockford Area Violent Gang Task Force, the Stateline Area Narcotics Team (“SLANT”), and the Freeport Police Department. The Rockford Area Violent Gang Task Force is led by the FBI and includes members of the FBI and the Rockford, Loves Park, and Freeport police departments. SLANT is a task force led by the Illinois State Police. The government was represented by Assistant U.S. Attorney Margaret J. Schneider.
Freeport Men Sentenced to Prison on Drug Trafficking ChargesRead the Press Release
ROCKFORD — Two Freeport men were sentenced today in federal court in Rockford on drug trafficking charges.
TERRANCE YOUNG, 46, was sentenced by U.S. District Chief Judge Rebecca R. Pallmeyer to seven and a half years in federal prison. Young pleaded guilty on Sept. 13, 2019, to possessing cocaine with intent to distribute. In a written plea agreement, Young admitted that on Aug. 30, 2018, law enforcement officers executed a search warrant at Young’s home. During the search, officers located and seized approximately 5.5 grams of cocaine in a plastic bag inside a kitchen cupboard, as well as other drug paraphernalia. Young acknowledged that the cocaine in the cupboard belonged to him and that he possessed it with the intent to distribute to others. In a dining room adjacent to the kitchen, officers located $3,743 in cash. Young also acknowledged that the cash belonged to him and that it came from the proceeds of drug sales. Young further admitted that he sold cocaine on July 14, 2017, Aug. 15, 2017, Dec. 4, 2017, and Aug. 7, 2018.
In a separate but related case, KYRAN WILLIAMS, 25, was sentenced by U.S. District Judge Philip G. Reinhard to nine years and three months in federal prison. Williams pleaded guilty on Sept. 17, 2019, to possessing crack cocaine with intent to distribute, possessing a firearm in furtherance of a drug trafficking crime, and illegally possessing a firearm as a felon. In a written plea agreement, Williams admitted that on Aug. 30, 2018, law enforcement officers executed a search warrant at Williams’s home in Freeport. Officers found and seized two guns, one with an extended magazine containing 31 rounds and the other with an obliterated serial number, as well as ammunition, a plastic baggie containing crack cocaine, and other drug paraphernalia. Williams also admitted he illegally possessed the firearms as a convicted felon and that he possessed the guns and ammunition found during the search to protect his drug stash and himself during his drug trafficking activity. Williams also admitted that he engaged in drug transactions and sold heroin on April 11, 2017, May 31, 2017, and April 11, 2018, and that he sold a substance containing both heroin and fentanyl on June 13, 2018.
The sentencings were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; Brendan F. Kelly, Director of the Illinois State Police; and Matt Summers, Freeport Police Chief. The investigation was conducted by the Rockford Area Violent Gang Task Force, the Stateline Area Narcotics Team (“SLANT”), and the Freeport Police Department. The Rockford Area Violent Gang Task Force is led by the FBI and includes members of the FBI and the Rockford, Loves Park, and Freeport police departments. SLANT is a task force led by the Illinois State Police. The government is represented by Assistant U.S. Attorney Margaret J. Schneider.
Fort Lauderdale Father and Daughter Convicted at Trial for Involvement in $100 Million Fraudulent Tax Refund SchemeRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Anthony Ramirez, Assistant Special Agent-in-Charge, U.S. Department of State Diplomatic Security Service (DSS), Miami Field Office; George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office; and James S. Jackson, Deputy Inspector General for Investigations, Treasury Inspector General for Tax Administration (TIGTA) announced that a West Palm Beach federal jury convicted Danielle Takeila Edmonson, 35, and Kenneth Roger Edmonson, 51, both of Fort Lauderdale, Florida for their involvement in a scheme that involved the filing of false and fraudulent tax returns seeking large-dollar tax refunds.
According to the evidence presented at trial, from 2015 through 2018, D. Edmonson and K. Edmonson filed large-dollar tax refund claims with the IRS totaling over $100 million, including individual refund claims ranging from hundreds of thousands of dollars to as high as eighty million dollars. Despite the false nature of the claims, the Department of Treasury paid out approximately $3.4 million in refunds through the issuance of U.S. Treasury checks.
In addition, D. Edmonson filed a fraudulent tax return seeking a large refund for tax year 2014, falsely indicating on handwritten forms that she had paid taxes of over $300,000. The IRS did not receive any corresponding forms to support the payment of any of these taxes. Despite the false nature of the tax return, the Department of Treasury issued a tax refund check for $239,700 in 2015. D. Edmonson deposited this tax refund check into her bank account and used the funds to purchase a luxury vehicle.
D. Edmonson also filed fraudulent tax returns for each of tax years 2015, 2016, and 2017, seeking refunds of approximately $80 million, $2.4 million, and $9 million, respectively. These tax returns contained forms falsely claiming that she had paid over $145 million in taxes during this period. The IRS did not receive any corresponding forms to support the payment of any of these taxes. Despite the false nature of the tax returns, the Department of Treasury issued a tax refund check to K. Edmonson in the amount of $2,405,703 on September 4, 2017. D. Edmonson subsequently deposited this tax refund check into her bank account.
In September 2017, K. Edmonson filed a fraudulent tax return seeking a refund of approximately $725,111. The return contained false and fraudulent claims that he had paid a substantial amount of withholding taxes. The IRS did not receive corresponding forms to support the claimed payments. Despite the false nature of the tax return, on January 28, 2018, the Department of Treasury mailed a tax refund check to K. Edmonson for $734,266.27 (including interest). Shortly thereafter, K. Edmonson deposited this tax refund check into his bank account.
Trial evidence also established that in January 2018, law enforcement conducted a search of the Edmonson residence. During the search, in the bedrooms of D. Edmonson and K. Edmonson, law enforcement found letters addressed to both individuals warning them of the frivolous nature of their returns. Shortly after law enforcement left, despite warnings not to do so, K. Edmonson went to his bank to attempt to withdraw the funds from the account that received the fraudulent refund check.
D. Edmonson was convicted four counts of filing false, fictitious and fraudulent claims, two counts of mail fraud, and one count of false statements. She faces maximum statutory sentence of 65 years in prison. Sentencing is scheduled for February 20, 2020, at 10:00 a.m., before U.S. District Judge Robin L. Rosenberg.
K. Edmonson was convicted at trial of two counts of filing false, fraudulent, and fictitious claims, one count of mail fraud, and one count of false statements. He faces a maximum statutory sentence of 35 years in prison. Sentencing is scheduled for February 20, 2020, at 2:00 p.m., before Judge Rosenberg.
U.S. Attorney Fajardo Orshan commended IRS-CI, DSS, FBI and TIGTA for their work on the case. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger and Adrienne Rosen.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former correctional officer admits accepting bribes from federal prison inmateRead the Press Release
WAYCROSS, GA: A former correctional officer at a privately-operated federal prison could spend up to 15 years behind bars after admitting accepting bribes from an inmate.
Micheal Eaddy, 23, of Blackshear, Ga., a former correctional officer at D. Ray James Correctional Facility, a privately prison operated under federal contract in Folkston, Ga., entered the plea in U.S. District Court to one count of bribery, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries a sentence of up to 15 years in prison, a substantial fine, and up to three years of supervised release upon completion of the prison sentence. There is no parole in the federal system.
“Correctional officers have a demanding job,” said U.S. Attorney Christine. “It makes the job more difficult, and dangerous, when dirty guards join the inmates in violating the law. When that happens, our office will work to put them on the same side of the bars.”
Eaddy admitted accepting $246.25 from an inmate in return for smuggling cigarettes into the prison. Investigators discovered the activity after seizing a contraband phone from the inmate and examining its contents, which included electronic conversations between Eaddy and the inmate.
“When correctional officers smuggle contraband into prisons in exchange for bribes, they undermine the safety and security of the institution they vowed to protect,” said James F. Boyersmith, Special Agent in Charge of the Department of Justice Office of the Inspector General Miami Field Office.
The case was investigated by the U.S. Department of Justice Office of Inspector General, and prosecuted for the United States by Assistant U.S. Attorney Marcela C. Mateo.
Former Postal Employee Pleads Guilty to Mail TheftRead the Press Release
ALBANY, NEW YORK – John R. Elbayeh, aka Jean Elbayeh, age 44, of Albany, pled guilty today to stealing Apple iPhones, gold coins, small gold bars and other valuable items from mailed packages while employed as a postal clerk.
The announcement was made by United States Attorney Grant C. Jaquith and Matthew Modafferi, Special Agent in Charge of the Northeast Area for the United States Postal Service (USPS), Office of the Inspector General (OIG).
Elbayeh worked as a lead mail processing clerk at the USPS Processing and Distribution Center in Albany, from December 2012 through December 2018. He admitted that for approximately 2 years ending in December 2018, he stole valuable items from the mail, including iPhones and gold coins, which he pawned for a total of $50,362.22.
Shortly after being interviewed by federal agents in December 2018, Elbayeh took a one-way flight to Beirut, Lebanon, and remained outside the United States until October 17, 2019. On that date, USPS-OIG Agents arrested him at Dulles International Airport in Virginia, where Elbayeh had just arrived from a flight originating in Cairo, Egypt. Elbayeh has been in custody since that time.
Elbayeh, who pled guilty to mail theft, faces up to 5 years in prison when United States District Judge Mae A. D’Agostino sentences him on April 17, 2020. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the USPS, Office of the Inspector General, with assistance from the United States Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Former Pharmaceutical Sales Representative Convicted for Insurance Fraud and Aggravated Identity TheftRead the Press Release
BOSTON – A federal jury in Boston convicted an Illinois man yesterday of defrauding insurance companies in relation to a high-priced drug made by Cambridge-based pharmaceutical company Aegerion Pharmaceuticals Inc., and for using the identities of physicians to carry out the fraud.
Mark Moffett, 47, of Springfield, Ill., was convicted of nine counts of wire fraud and six counts of aggravated identity theft. U.S. District Court Judge William G. Young scheduled sentencing for April 9, 2020.
“Mr. Moffett stole doctors’ identities, obtained fraudulent prescriptions, falsified test results, and forged insurance documents in an effort to sell a powerful drug,” said United States Attorney Andrew E. Lelling. “He ignored the serious consequences it could have on patients’ health, caring more about lining his own pockets. Mr. Moffett’s conviction is part of our ongoing effort to hold pharmaceutical companies accountable for violating laws that protect patient safety and the integrity of the health care system.”
“Mark Moffett took matters into his own hands by defrauding Medicare and potentially putting patients’ health at risk for his own financial benefit,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “The FBI would like to thank the jury for their swift verdict, and we will continue to vigorously investigate healthcare fraud matters to protect the public’s interest.”
“Greed was at the very core of Mark Moffett’s scheme to defraud our federal healthcare system,” said Phillip M. Coyne, Special Agent in Charge for the U.S. Department of Health & Human Services, Office of Inspector General. “This type of fraud is corrosive, wastes taxpayer funds, and drives up healthcare costs. We will continue to aggressively root out these fraud schemes and bring criminals to justice.”
“The Employee Benefits Security Administration is pleased to have had the opportunity to work collaboratively with our law enforcement partners on this investigation. I commend the exceptional work performed by our investigators and their law enforcement partners. This office will continue to vigorously pursue cases where participants and private sector health benefit plans are victimized by unscrupulous and illegal pharmaceutical sales practices,” said Carol S. Hamilton, Acting Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office
In 2014 and 2015, Moffett, a pharmaceutical sales representative for Aegerion, marketed the company’s cholesterol drug Juxtapid. Juxtapid was approved by the FDA only to treat high cholesterol in patients with a rare genetic disease called homozygous familial hypercholesterolemia (“HoFH”). The FDA approved the drug only to treat HoFH patients because the drug carried serious risks of side effects, including liver damage. The drug’s label included a black box warning.
Moffett nonetheless convinced doctors to prescribe Juxtapid, which costs over $300,000 per year, for patients without HoFH. In order to defraud Medicare and private sector employee health plans into paying for a drug they only covered for FDA-approved uses, Moffett obtained fraudulent prescriptions and falsified numerous documents, including statements of medical necessity and other insurance documents. This included false patient test results, false clinical histories and false diagnoses. Moffett used the identities of several cardiologists to carry out the fraud. He was paid bonuses by Aegerion of up to $11,000 for each prescription of Juxtapid.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 per count. The charge of aggravated identity theft provides for a mandatory minimum sentence of two years in prison to be serve consecutive to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling, FBI Boston SAC Bonavolonta, HSI-OIG SAC Coyne, and DOL-EBSA Acting Regional Director Hamilton made the announcement. Assistant U.S. Attorneys Kriss Basil, of Lelling’s Securities and Financial Fraud Unit, and Rachel Y. Hemani, of Lelling’s Health Care Fraud Unit, are prosecuting the case.
Former Non-Profit Organization President Lynn D. Cawthorne Facing New Federal ChargesRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that a federal grand jury indicted Lynn D. Cawthorne, 52, of Shreveport, on December 18, 2019, charging him with aiding and assisting in making and subscribing a false return.
The indictment includes two counts involving false returns for the tax years 2013 and 2014. The defendant willfully withheld information from his accountant when he reported an adjusted gross income of $7,555 for calendar year 2013 and an adjusted gross income of $9,529 for calendar year 2014. Cawthorne knew the information he presented to his accountant was false, which prevented his accountant from accurately reporting income for the years 2013 and 2014.
In April 2018, Cawthorne and his sister were indicted for stealing more than $536,000 from a program meant to supply meals to children during the summer. On April 26, 2018, a grand jury returned an eight-count indictment charging them with one count of conspiracy to commit wire fraud and seven counts of wire fraud. On February 28, 2019, additional charges were brought in a superseding indictment adding 18 counts of money laundering-related charges.
Cawthorne and his sister operated United Citizens and Neighborhoods (UCAN), as president and director, respectively. UCAN was a non-profit corporation that participated in the Summer Feeding Service Program (SFSP), which is administered by the Louisiana Department of Education Division of Nutrition Support. The SFSP was established to ensure that children in low-income areas continue to receive nutritious meals when school is not in session during the summer.
Cawthorne is scheduled to appear before U.S. Magistrate Judge Mark L. Hornsby on January 8, 2020, to be arraigned for the tax charges. If convicted Cawthorne faces up to three years in prison, a $100,000 fine, and one year of supervised release for each count.
Special agents with the IRS-Criminal Investigation Division investigated the case. Assistant U.S. Attorney Tennille M. Gilreath is prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
# # #
Former Government Consultant Sentenced to 41 Months in Prison for Bribery and Fraud SchemesRead the Press Release
WASHINGTON – John Woods, 57, of Washington, D.C., was sentenced today to 41 months in prison on charges that he stole more than $560,000 from the company and paid more than $140,000 in bribes to a former D.C. government employee to facilitate his theft.
The announcement was made today by U.S. Attorney Jessie K. Liu, Timothy M. Dunham, Special Agent in Charge, FBI Washington Field Office, Criminal Division, and Daniel W. Lucas, District of Columbia Inspector General.
In August 2019, Woods pled guilty in the U.S. District Court for the District of Columbia to one count of wire fraud. He was sentenced by the Honorable Dabney L. Friedrich. Following his prison term, Woods will be placed on three years of supervised release.
As part of his sentence, Woods was ordered to pay $564,910.23 in restitution to the company from which he stole the money, identified in the statement of offense as “Company A.”
According to the statement of offense, Woods worked as a consultant for Company A, which had contracts with the District of Columbia Department of Human Resources (“DCHR”). Between April 2013 and February 2015, Woods stole $214,910 in D.C. government checks that were issued to “Company A” for work performed on the DCHR contracts. Beginning in March 2015, Woods began usurping “Company A’s” role under the contracts by purposefully failing to submit Company A’s invoices to DCHR for payment. This led Company A to believe the D.C. government was negligent in paying its invoices, and Company A stopped seeking to perform work under its agreements with DCHR. Woods then secretly performed the agreements without Company A’s knowledge by hiring and retaining contractors to provide the necessary work to DCHR and by submitting fraudulent invoices to DCHR, purportedly on behalf of Company A, for payment under the agreements. DCHR would then issue payments in the form of D.C. government checks made payable to Company A, which Woods deposited into a bank account he controlled. In all, Woods fraudulently deposited approximately 27 checks issued by the D.C. government to “Company A”, totaling approximately $1,040,023, from March 2015 through August 2017.
According to the statement of offense, in order to keep his scheme in place, Woods paid more than $140,000 in bribes to Latasha Moore, then a DCHR employee. As a resource allocation analyst for DCHR, Moore was the main point of contact for “Company A.” In exchange for the bribes that Woods paid to her, Moore ensured no complaints or suspicions about the contracts reached others in the government. For example, Moore failed to report problems that arose while Woods was managing the work, including complaints of contractors arriving late, leaving early or failing to show up at all for training.
Moore, 38, of Washington, D.C., pled guilty on Oct. 11, 2018, to a federal bribery charge. She will be sentenced on January 7, 2020.
In announcing the sentence, U.S. Attorney Liu, Special Agent in Charge Dunham, and Inspector General Lucas commended the work of those who investigated the case from the FBI’s Washington Field Office and the Office of the Inspector General of the District of Columbia. They also expressed appreciation for the work of Assistant U.S. Attorney Michael J. Marando of the U.S. Attorney’s Office for the District of Columbia, who investigated and prosecuted the matter.
Former Employee of Hospital Pleads Guilty to Compromising Dozens of Hospital Computers and Coworkers’ Email Accounts and Stealing Their Confidential InformationRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that RICHARD LIRIANO pled guilty today to one count of computer fraud in connection with his scheme to use malicious software programs, including a program known as a “keylogger,” on dozens of his coworkers’ computers at a New York City-area hospital, secretly obtaining user names and passwords to his victims’ personal email and other accounts, and using that unauthorized access to steal private and confidential files. Using his victims’ stolen credentials, LIRIANO repeatedly compromised their password-protected online accounts, and accessed their sensitive personal photographs, videos, and other private documents. LIRIANO pled guilty earlier today in Manhattan federal court before United States Magistrate Judge Kevin N. Fox.
U.S. Attorney Geoffrey S. Berman said: “To feed his voyeuristic curiosity, Richard Liriano, an information technology professional at a New York hospital, installed a “keylogger” on dozens of his coworkers’ computers and used other unauthorized software to spy on and steal personal information from them. Liriano’s disturbing crimes not only invaded the privacy of his coworkers; he also intruded into computers housing vital healthcare and patient information, costing his former employer hundreds of thousands of dollars to remediate. He will now be held accountable for his actions.”
According to the allegations in the Information to which LIRIANO pled guilty, a prior Indictment filed against LIRIANO, as well as statements made during the plea and other proceedings in the case:
From at least in or about 2013, up to and including at least in or about 2018, LIRIANO misused administrative access provided to him as an information technology employee at a New York City-area hospital (“Hospital-1”), to log in to employee accounts, and copy other employees’ personal documents, including tax records and personal photographs, onto his own workspace computer for his own personal use.
To further his efforts to steal personal information from Hospital-1’s employees, LIRIANO, without authorization, used various malicious programs to steal the user names and passwords of his primarily female co-workers. One of these programs was known as a keylogger, which recorded and sent victim employees’ keystrokes to LIRIANO, such as the usernames and passwords those employees entered to access their personal web-based email accounts. Through the course of this conduct, LIRANO stole usernames and passwords for at least approximately 70 email accounts belonging to Hospital-1 employees or persons associated with those employees (the “Compromised Accounts”).
LIRIANO then used those stolen usernames and passwords to log in to the Compromised Accounts and obtain unauthorized access to other password-protected email, social media, photographs, and online accounts to which the Compromised Accounts were registered. Among other things, LIRIANO conducted searches for sexually explicit photographs and videos in the Compromised Accounts.
LIRIANO’s computer intrusions into Hospital-1’s computer networks caused over $350,000 in losses to Hospital-1.
* * *
LIRIANO, 33, of the Bronx, New York, was arrested on November 14, 2019. LIRIANO pled guilty today to one count of transmitting a program to a protected computer that intentionally caused damage, which carries a maximum sentence of 10 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
LIRIANO is scheduled to be sentenced by U.S. District Judge Lewis A. Kaplan on April 15, 2020, at 3:00 p.m.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation and thanked the New York City Police Department for its assistance.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Vladislav Vainberg is in charge of the prosecution.
Former Chairman and Managing Partner Charged for Role in $15 Million Ponzi SchemeRead the Press Release
A California man who was the chairman and managing partner of an energy company was charged in an indictment unsealed today for his alleged operation of a Ponzi scheme involving approximately 50 victims and more than $15 million.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney David L. Anderson of the Northern District of California and Special Agent in Charge John F. Bennett of the FBI’s San Francisco Field Office made the announcement.
Joey Stanton Dodson, 55, of Indio, California, was charged in an indictment filed in the Northern District of California with four counts of wire fraud, three counts of mail fraud and three counts of money laundering. Dodson was arrested this morning and made an initial appearance before U.S. Magistrate Judge Shashi H. Kewalramani of the Central District of California.
The indictment alleges that between November 2012 and May 2015, Dodson used several related companies and partnerships, collectively known as Citadel Energy, to fraudulently raise $15 million by soliciting investments in three limited partnerships that would purportedly provide water-related services to oil and gas companies in North Dakota. The indictment further alleges that Dodson induced investors by making numerous materially false misrepresentations about these partnerships, including regarding how the investor funds would be used, the amount of his compensation and the status of a potential acquisition of the partnerships by a private equity firm.
According to the allegations in the indictment, Dodson routinely commingled the monies between the three partnerships, which resulted in investor funds being used to pay the expenses of unrelated projects. Furthermore, the indictment alleges that Dodson misappropriated and diverted more than $1.3 million of investor funds for his own personal benefit, which included repaying former investors in unrelated Dodson-led investments, gambling activity, his wife’s BMW and other expenses.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s San Francisco Field Office investigated this case. Trial Attorney Jason M. Covert of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Sarah Griswold of the Northern District of California are prosecuting the case.
The Enforcement Division of the U.S. Securities and Exchange Commission provided valuable assistance.
The Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Former Chairman and Managing Partner Charged for Role in $15 Million Ponzi SchemeRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Joey Stanton Dodson, chairman and managing partner of an energy company, charging him with crimes related to an alleged $15 million Ponzi scheme involving approximately 50 victims.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, United States Attorney David L. Anderson of the Northern District of California, and Special Agent in Charge John F. Bennett of the FBI’s San Francisco Field Office made the announcement.
According to the indictment, between November 2012 and May 2015, Dodson, 55, of Indio, Calif., used several related companies and partnerships, collectively known as Citadel Energy, to fraudulently raise $15 million by soliciting investments in three limited partnerships that would purportedly provide water-related services to oil and gas companies in North Dakota. The indictment further alleges that Dodson induced investors by making numerous materially false misrepresentations about these partnerships, including regarding how the investor funds would be used, the amount of his compensation, and the status of a potential acquisition of the partnerships by a private equity firm.
According to the allegations in the indictment, Dodson routinely commingled the monies between the three partnerships, which resulted in investor funds being used to pay the expenses of unrelated projects. Furthermore, the indictment alleges that Dodson misappropriated and diverted more than $1.3 million of investor funds for his own personal benefit, which included repaying former investors in unrelated Dodson-led investments, gambling activity, his wife’s BMW, and other expenses.
The indictment charges Dodson with four counts of wire fraud, in violation of 18 U.S.C. § 1343, three counts of mail fraud, in violation of 18 U.S.C. § 1341, and three counts of money laundering, in violation of 18 U.S.C. §§ 1957 and 2.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. If convicted of the wire fraud charges, Dodson faces a maximum statutory sentence of 20 years in prison and a fine in the amount of $250,000. If convicted of the mail fraud charges, Dodson faces a maximum statutory sentence of 20 years in prison and a fine in the amount of $250,000. If convicted of the money laundering charges, Dodson faces a maximum statutory sentence of 10 years in prison and a fine in the amount of $250,000. The court also may order a term of supervised release, fines or other assessments, restitution, and forfeiture, if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Dodson was arrested this morning and made an initial appearance before the Hon. Shashi H. Kewalramani, U.S. Magistrate Judge for the Central District of California. Dodson’s next appearance is expected before the Hon. Nathanael M. Cousins, U.S. Magistrate Judge for the Northern District of California.
Trial Attorney Jason M. Covert of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Sarah Griswold of the Northern District of California are prosecuting the case. The prosecution is the result of an investigation by the FBI’s San Francisco Field Office, with the assistance of the Enforcement Division of the U.S. Securities and Exchange Commission.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Former Associate Director Arrested and Charged with Embezzling Hundreds of Thousands of Dollars from Global Maritime Service GroupRead the Press Release
NEWARK, N.J.– A former associate director of a global maritime service group was arrested today for defrauding the company and embezzling hundreds of thousands of dollars for his own personal benefit, U.S. Attorney Craig Carpenito announced.
David Buckingham, 35, of Chatham, New Jersey, was indicted on five counts of wire fraud. He was arrested this morning by postal inspectors from the U.S. Postal Inspection Service and is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the indictment:
Buckingham held the title of associate director and head of the New York office of the victim company, a global maritime service group headquartered in London, England. The company offered among other services, the handling of subrogation claims related to marine transportation of goods for insurance companies.
Buckingham was a signatory on the company’s United States bank accounts and had authority to issue checks for legitimate business purposes. Buckingham was also responsible for paying the company’s payroll taxes.
From 2016 through 2018, Buckingham embezzled hundreds of thousands of dollars from the Victim Company by writing checks from the Victim Company to himself or to “cash” to obtain funds to which he was not entitled. In some instances Buckingham falsified the Victim Company’s books and records in an effort to make the payments appear legitimate by claiming that certain of the checks were to make tax payments on behalf of the Victim Company or to pay other legitimate business expenses. Buckingham did not make payroll tax payments on behalf of the Victim Company during the relevant time period, and instead used the proceeds of the scheme for his own personal expenses.
The charges of wire fraud each carry a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Craig Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, and postal inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Inspector in Charge James Buthorn, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Vijay Dewan and Courtney A. Howard of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Florida Man Sentenced to More Than 6 Years in Prison for Defrauding Investors of Nearly $1 Million and Attempting to Flee Before SentencingRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that PEDRO ANDRES OSORIO was sentenced by U.S. District Judge William H. Pauley III to 76 months in prison for his role in a scheme to defraud investors of more than $1 million. OSORIO pled guilty before Judge Pauley on September 4, 2019, to one count of wire fraud.
U.S. Attorney Geoffrey S. Berman said: “Pedro Andres Osorio defrauded his friends and family of nearly $1 million by convincing them to invest in his sham liquor company. Osorio’s scheme destroyed his victims’ financial and emotional wellbeing. Rather than take responsibility for his actions and face his victims, Osorio was caught trying to flee the country before his sentencing. Now Osorio will spend years in prison for his betrayals of his investors and the Court.”
FBI Assistant Director William F. Sweeney Jr. said: “Not only did Osorio steal from people within his inner circle to keep up the façade of his fraudulent investment scheme, he attempted to leave the country after being released on bond in an attempt to escape the consequences of his actions. Today Osorio has learned the hard way that two wrongs certainly don’t make things right.”
According to the allegations in the Complaint, the Indictment, and other documents filed in federal court, as well as statements made in public court proceedings:
From December 2015 to November 2017, OSORIO solicited investments in a purported liquor distribution company from approximately nine people whom he knew from his own family and social circles in Florida and New York. OSORIO promised the investors high rates of return on importing Colombian liquor, and told them that his new company was working in partnership with a more established company.
In truth, OSORIO’s liquor company was a sham. OSORIO did not import or distribute liquor, and did not have a business relationship with another liquor distribution company. Instead, OSORIO used the investors’ money for himself, including for air travel, cruises, jewelry, electronics, and furniture. OSORIO also redistributed some of the investors’ money to other investors as supposed profits in order to induce additional investments. In total, OSORIO defrauded investors of approximately $1 million.
OSORIO had been released on bond during the pendency of the case, and was required to surrender his Colombian passport and remain in Florida (where he lived) and New York. However, on October 29, 2019, OSORIO was arrested at Miami International Airport attempting to jump bail and flee the United States to Colombia. OSORIO’s ticket was purchased the day before and he had obtained a new Colombian passport. OSORIO has since remained in custody until his sentencing.
* * *
In addition to the prison term, OSORIO, 36, of Doral, Florida, was sentenced to three years of supervised release and ordered to make restitution in the amount of $994,106. Forfeiture will be in an amount to be determined.
Mr. Berman thanked the FBI for their outstanding work.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Brett M. Kalikow is in charge of the prosecution.
Florida Man Admits Laundering More Than $9 Million in Account Takeover SchemeRead the Press Release
TRENTON, N.J. – A Florida man has admitted to laundering funds related to a $9 million business account takeover scheme with ties to Eastern Europe, U.S. Attorney Craig Carpenito announced.
Igor Buzyukov, 51, of Weston, Florida, pleaded guilty today before U.S. District Judge Anne E. Thompson in Trenton to an information charging him with one count of conspiracy to commit money laundering.
According to documents filed in this case and statements made in court:
Between February 2018 and July 2018, several clients of Company-1, a financial technology company headquartered in San Jose, California, fell victim to an account takeover scheme resulting in total losses exceeding $9 million.
The scheme generally involved an unidentified individual or individuals calling Company-1 and impersonating a representative of one of the victim companies. The impostor(s) would then request that an unauthorized bank account be added to the victims’ Company-1 accounts and be designated to receive payments from e-commerce customers.
The unauthorized bank accounts added to the victims’ Company-1 accounts were each controlled by Buzyukov under the name of a corporation registered to him in the State of Florida. After monies were deposited to the unauthorized accounts, Buzyukov would transfer the funds to other accounts controlled by him. Buzyukov then wired the majority of the funds to several bank accounts held by various individuals in Russia, Turkey and Ukraine.
Buzyukov also admitted to creating fake invoices in the amounts of the wire transfers in order to make the transactions appear legitimate.
The conspiracy to commit money laundering charge carries a statutory maximum of 20 years in prison and a fine of not more than $500,000 or twice the value of the property involved, whichever is greater. Sentencing is scheduled for March 26, 2020.
U.S. Attorney Carpenito credited special agents of the United States Secret Service, under the direction of Special Agent in Charge Mark McKevitt in Newark with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Anthony Torntore of the U.S. Attorney’s Cybercrimes Unit in Newark.
Defense counsel: Thomas Ambrosio, Esq., Lyndhurst, NJ
Five Aliens Indicted on Illegal Reentry Charges and Illegal and Unlawful Alien in Possession of a FirearmRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging DAVID FRANCISCO BAMACA-AYALA, age 22, of Guatemala, OMAR MALDONADO ELIGIO, age 31, of Mexico, MARTIN VILLEGAS-MARTINEZ, age 49, of Mexico, with Illegal Reentry of a Deported Alien.
Additionally, the grand jury returned indictments charging DAVID BAZA-SOLIS, age 29, of Mexico and JOSE RICARDO AYALA-RODAS, age 38, of Guatemala, with illegal and unlawful alien in possession of a firearm.
If convicted of illegal reentry of a deported alien, BAMACA-AYALA, previously deported three times and found in Harnett County, MALDONADO ELIGIO, previously deported two times and found in Wake County, and VILLEGAS-MARTINEZ, previously deported and found in Johnston County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of illegal and unlawful alien in possession of a firearm, BAZA-SOLIS, found in Wilson County, and AYALA-RODAS, found in Harnett County would face maximum penalties of 10 years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations.