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4 February 2020
Berkeley County woman sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Cassandra Elaine Riggs, of Hedgesville, West Virginia, was sentenced today to 57 months incarceration for a firearms charge, U.S. Attorney Bill Powell announced.
Riggs, age 30, pled guilty to one count of “Unlawful Possession of a Firearm” in September 2019. Riggs, who is prohibited from having a firearm or ammunition because of previous felony convictions, admitted to having a .223 caliber semi-automatic rifle in October 2018 in Berkeley County.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Probation Office investigated.
Chief U.S. District Judge Gina M. Groh presided.
Berkeley County man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Herman Lee Brown, Jr., of Inwood, West Virginia, was sentenced to 51 months incarceration for a firearms violation, U.S. Attorney Bill Powell announced.
Brown, age 52, pled guilty to one count of “Unlawful Possession of a Firearm” in August 2019. Brown, a person prohibited from having a firearm, admitted to having a .380 caliber pistol in July 2018 in Berkeley County.Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Martinsburg Police Department investigated.
Chief U.S. District Judge Gina M. Groh presided.
Armed Career Criminal Sentenced to 15 Years for Shoot-Out with Memphis PoliceRead the Press Release
Memphis, TN – Quinton Yates, 50, has been sentenced to 188 months in federal prison for being a convicted felon in possession of a firearm and for Possession of an Unregistered Shotgun with a Barrel Less Than 18 Inches. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on August 23, 2018, detectives from the Memphis Police Department, Organized Crime Unit (OCU) were conducting a drug investigation on Young Street. While detectives were standing outside of their vehicles, Quinton Yates exited a residence and began firing shots at them. Detectives leapt into their vehicles to clear the line of fire. As one of the detectives returned fire, Yates retreated inside the house. A SWAT team set up a barricade/perimeter around the house and a standoff ensued.
Several hours later, Yates and three other individuals who were in the home surrendered. Law enforcement recovered three firearms, including an assault rifle, a sawed-off barrel shotgun and a .22 long rifle caliber revolver. Yates admitted to opening fire on the detectives from the residence but stated he did not know they were police officers. He also stated the three individuals at his home had nothing to do with the shooting.
Yates is a convicted felon, having prior convictions for robbery, aggravated assault, and carjacking, and was still on parole at the time of this shooting incident. As a result of these previous violent felony convictions, Yates was determined to be an armed career criminal under the federal sentencing guidelines, and subject to a mandatory minimum sentence of 180 months.
On February 3, 2020, U.S. District Court Judge Jon P. McCalla, sentenced Yates to 188 months in federal prison followed by 3 years supervised release.
U.S. Attorney D. Michael Dunavant said, "Convicted felons who possess firearms are an inherent danger to community, as seen in this case. Yates was an armed career criminal who continued to possess and use multiple firearms while on parole for violent felonies. This sentence is just punishment for such a brazen attack on police, and will incapacitate him from committing additional gun violence for a significant period of time, making us all safer. Gun Crime is Max Time."
This case was investigated by the Memphis Police Department’s Organized Crime Unit (OCU), Project Safe Neighborhoods (PSN) Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant U.S. Attorney Raney Irwin prosecuted this case on behalf of the government.
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Acupuncturist Sentenced to 2½ Years in Federal Prison for Defrauding Amtrak’s Health Care Plan out of Millions of DollarsRead the Press Release
LOS ANGELES – A licensed acupuncturist was sentenced late this afternoon to 30 months in federal prison for fraudulently billing Amtrak’s health care plan for $7.1 million in acupuncture, massages and facials that either were medically unnecessary or were never provided.
Guiqiong Xiao Gudmundsen, 53, a.k.a. “Kimi” Gudmundsen, of Anaheim Hills, was sentenced by United States District Judge Dolly M. Gee. Judge Gee also ordered her to pay $2,683,903 in restitution to Amtrak.
In October 2019, Gudmundsen pleaded guilty to one count of health care fraud and one count of money laundering.
Gudmundsen owned Healthy Life Acupuncture Center, which operated in Riverside and Los Angeles. From January 2008 until December 2015, Gudmundsen recruited Amtrak employees to visit Healthy Life and then, among other things, billed the Amtrak health care plan for acupuncture, which she knew wasn’t being provided.
She billed the health plan for medically unnecessary services such as massages and facials, as well as for work-related injuries she knew the Amtrak plan did not cover. Gudmundsen also provided medical services to non-Amtrak health care plan participants and then billed the plan for it under the name of an actual Amtrak plan participant.
Gudmundsen regularly waived co-payments, co-insurance, and deductibles for Amtrak health care plan participants, something the plan did not permit. She double billed to other insurance plans, and she provided services to returning patients falsely billed as “new patients” in order to take advantage of higher reimbursement rates.
During the course of the scheme, Gudmundsen billed Amtrak’s health care plan in amounts comparable to large research hospitals and medical institutions that dwarfed other acupuncturists, court papers state. In 2013, Gudmundsen was ranked 32nd in the United States among health care providers for the amount billed to the Amtrak health care plan – above Johns Hopkins Hospital in Baltimore, which was ranked 39th, according to court documents.
Finally, she knowingly and routinely funneled her ill-gotten gains through bank accounts opened in the names of a shell company and her relatives.
Gudmundsen’s “entire business model was based on fraud, infiltrating all the services that she provided (and those she did not provide),” prosecutors wrote in their sentencing memorandum. “The Amtrak health care plan provides much-needed health care services to Amtrak union employees and their dependents. These types of fraud schemes increase the costs of such health insurance plans.”
This matter was investigated by Amtrak Office of Inspector General, IRS Criminal Investigation, and the U.S. Department of Labor’s Employee Benefits Security Administration.
This case was prosecuted by Assistant United States Attorneys Scott D. Dubois and Jenna G. Williams of the General Crimes Section.
3 February 2020
Woman Orchestrated Scheme to Obtain U Visas, Charged with Visa FraudRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging YURIDIA HERNANDEZ LINARES, 36, with conspiracy to commit visa fraud. LINARES made her initial appearance earlier today before Magistrate Judge Tony N. Leung in U.S. District Court in Minneapolis, Minnesota.
According to the allegations in the indictment, between August 20, 2019, and September 30, 2019, LINARES conspired with other individuals to defraud the United States by making false statements to fraudulently obtain U Nonimmigrant Visas (“U-Visas”), for four individuals. Victims of certain criminal activities that occur in the United States may be eligible to apply for and obtain a U Visa. A victim who obtains a U Visa may subsequently apply to U.S. Citizenship and Immigration Services (USCIS) to adjust their status to become a lawful permanent resident of the United States.
According to the allegations in the indictment, LINARES devised and participated in a detailed scheme, whereby the four individuals each falsely reported to the Eden Prairie Police Department that they were victims of robberies committed in Eden Prairie, Minnesota. LINARES directed the individuals to file a police report stating that they were a victim of a fabricated assault, and to corroborate each other’s account of the assault. LINARES used a box cutter or other sharp object to cut the four individuals before they filed their false report with the Eden Prairie Police Department. In exchange, LINARES collected a $2,000 fee from each individual.
This case is the result of an investigation conducted by Homeland Security Investigations and the Eden Prairie Police Department.
Assistant U.S. Attorney Angela M. Munoz is prosecuting the case.
Defendant Information:
YURIDIA HERNANDEZ LINARES, 36
City of residence unknown
Charges:
- Conspiracy to commit visa fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Winona Man Sentenced to 38 Years in Prison for Producing Images of Child Sexual AbuseRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of RYAN THOMAS FEINE, 35, to 456 months in prison for production and attempted production of child pornography, followed by 20 years of supervised release. FEINE, who pleaded guilty on October 7, 2019, was sentenced today before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minnesota. During the sentencing hearing, Judge Tunheim described FEINE’s criminal conduct as “certainly horrendous,” and further noted that the case was, “among the worst I’ve ever seen.”
“This is one of the most egregious cases of child sexual abuse my office has prosecuted,” said U.S. Attorney Erica MacDonald. “We will never shy away from difficult cases such as this, we are committed to pursuing justice for innocent children.”
According to the defendant’s guilty plea and documents filed in court, between February 10, 2013, and September 10, 2013, FEINE created multiple video recordings of his sexual abuse of Minor A, who was less than one year old at the time. During the same time period, FEINE also produced sexually explicit images of Minor B, who was approximately five years old at the time. FEINE came to the attention of law enforcement in August 2018, based on an allegation of ongoing sexual abuse.
According to the defendant’s guilty plea and documents filed in court, in August 2018, law enforcement executed a search warrant on several of FEINE’s electronic devices, which revealed more than 1,000 images and 150 videos of child pornography. The National Center for Missing or Exploited Children subsequently identified the defendant as the creator of a multi-part child pornography series that has been distributed across the country.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
If you know of any child who may have been a victim of exploitation, please call the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
This case was the result of an investigation conducted by the FBI, the Winona Police Department, and the Winona County Sheriff’s Office.
Assistant U.S. Attorneys Jordan L. Sing and Melinda A. Williams prosecuted the case.
Defendant Information:
RYAN THOMAS FEINE, 35
Winona, Minn.
Convicted:
- Production and attempted production of child pornography, 2 counts
Sentenced:
- 456 months in prison
- 20 years of supervised release
- Restitution payable to each minor victim
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Wichita Man Sentenced for CarjackingRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced today to 70 months in federal prison on a federal carjacking conviction, U.S. Attorney Stephen McAllister said.
Zachary Ausdemore, 30, Wichita, Kan., pleaded guilty to one count of carjacking. In his plea, he admitted that on Sept. 10, 2019, he confronted an elderly couple and threatened to kill them unless they gave him the keys to their car.
The incident began earlier that day when Wichita police responded to a report of a stolen Jeep. Ausdemore was a passenger in the stolen jeep with two other people. When police tried to stop the Jeep, the driver accelerated toward an officer. An officer fired at the car, wounding Ausdemore and the driver. When the car stopped, Ausdemore fled on foot. He ran to the house of the elderly couple, who were outside watching the chase, and took the keys to their Honda CRV. Police pursued Ausdemore until he ran the car into a muddy ditch.
McAllister commended the FBI, the Wichita Police Department and Assistant U.S. Attorney Mona Furst for their work on the case.
Wichita Man Pleads Guilty to Two Armed RobberiesRead the Press Release
WICHITA, KAN. – A Wichita man pleaded guilty today to two armed robberies at local hotels, U.S. Attorney Stephen McAllister said.
Darrell E. Black, 26, Wichita, Kan., pleaded guilty to two counts of commercial robbery. In his plea, he admitted that on May 27, 2017, he robbed the Extended Stay America at 9450 E. Corporate Hills, and on May 29, 2017, he robbed the Days Inn and Suites at 7321 E. Kellogg, both in Wichita.
In both robberies, he held a clerk at gunpoint while demanding money from the hotel cash drawer.
Sentencing is set for May 1. Black could face a sentence of up to 20 years in federal prison and a fine up to $250,000 on each count.
McAllister commended the Wichita Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Lanny Welch for their work on the case.
Waterbury Man Guilty of Trafficking HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that a federal jury in New Haven today found FRANCISCO LOPEZ, 33, of Waterbury, guilty of heroin distribution offenses. The trial before U.S. District Judge Janet C. Hall began on January 28.
According to the evidence disclosed during the trial, this matter stems from a joint investigation headed by the DEA New Haven Task Force and the Waterbury and Naugatuck Police Departments. The investigation, which included the use of court-authorized wiretaps, physical surveillance and controlled purchases of narcotics, revealed that a Waterbury-based drug trafficking organization was receiving large quantities of heroin and cocaine from various suppliers and distributing narcotics in and around Waterbury. Intercepted communications indicated that, on two occasions in December 2018, Lopez ordered 150 grams of heroin from two other members of the conspiracy.
Three hundred grams of heroin is enough to produce 12,000 individual bags of heroin that can be sold for approximately $5 each on the street.
The jury found Lopez guilty of one count of conspiracy to distribute, and to possess with intent to distribute, 100 grams or more of heroin, and one count of using a telephone to facilitate a drug trafficking crime.
On March 13, 2019, a grand jury in Hartford returned an indictment charging Lopez and 28 other individuals with various offenses related to the distribution of heroin, cocaine and crack cocaine. Lopez has been detained since his arrest on March 20, 2019.
On March 21, 2019, in association with the arrests of several of Lopez’s codefendants, investigators seized approximately 3,000 bags of heroin, 400 grams of cocaine, 350 grams of fentanyl/heroin mixed, 400 grams of heroin, 10 grams of crack, 20 pounds of marijuana, fentanyl patches, a one-kilogram press, four handguns, approximately $120,000 in cash and four vehicles.
Judge Hall scheduled sentencing for April 27, 2020, at which time Lopez faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 44 years.
All 29 defendants in this case have been convicted.
This investigation is being conducted by the Drug Enforcement Administration New Haven Task Force, Waterbury Police Department and Naugatuck Police Department, with the critical assistance of the U.S. Secret Service, New York Field Office. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Nathaniel J. Gentile.
Virginia man sentenced to more than 27 years for child pornography chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Alan Williams, of Hillsboro, Virginia, was sentenced today to 327 months incarceration for producing child pornography, U.S. Attorney Bill Powell announced.
“The production of child pornography is a heinous act and victims our most vulnerable—our children. The sentence is warranted and demonstrates our commitment to aggressively prosecuting these crimes,” said Powell.
Williams, age 55, pled guilty to one count of “Production of Child Pornography by Person Having Custody or Control” on September 2019. Williams admitted to permitting a minor to engage in sexually explicit conduct to produce child pornography to be shared in February 2019 in Jefferson County.
Williams was also ordered to pay $30,000 in restitution to the victim in this case.
Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The Department of Homeland Security Investigations investigated.
Chief U.S. District Judge Gina M. Groh presided.
Victim Advisory – Aleksei Burkov Case UpdatesRead the Press Release
CASE NAME: United States v. Aleksei Burkov, Criminal Case No. 1:15-cr-245
COURT: U.S. District Court for the Eastern District of Virginia, Alexandria Division
CASE SUMMARY: On January 23, Aleksei Burkov pleaded guilty to access device fraud and conspiracy to commit computer intrusion, identity theft, wire and access device fraud, and money laundering. He faces a maximum penalty of 15 years in prison when sentenced on May 8.
According to court documents, Burkov operated a website called “Cardplanet” that sold payment card numbers (e.g., debit and credit cards) that had been stolen primarily through computer intrusions. Many of the cards offered for sale belonged to United States citizens. The stolen credit card data sold on Burkov’s site has resulted in over $20 million in fraudulent purchases made on United States credit cards. Additionally, Burkov ran another website that served as an invite-only club where elite cybercriminals could advertise stolen goods, such as personal identifying information and malicious software, and criminal services, such as money laundering and hacking services.
CASE STATUS: Burkov is scheduled to be sentenced on May 8.
VICTIM RESPONSE: To ensure that members of the public, including potential victims of Burkov’s fraud, are informed of developments in this ongoing case, the U.S. Attorney’s Office has established a page on its website, available at the following link: https://www.justice.gov/usao-edva/united-states-v-aleksei-burkov.
The website currently includes a copy of the superseding indictment, plea agreement, and statement of facts filed in this case. Victims with questions can call 1-844-527-5299 and reference the above case name and docket number. Victim impact statements can be emailed to EDVA Victim Witness, or mailed to:
U.S. Attorney’s Office
Attn: Victim Witness
2100 Jamieson Avenue
Alexandria, VA 22314
Vallejo Man Pleads Guilty to Bank Fraud and Identity Theft SchemeRead the Press Release
SACRAMENTO, Calif. — Matthew Core, 38, of Vallejo, pleaded guilty Monday to bank fraud, aggravated identity theft, and possession of reproduced U.S. Postal Service keys, U.S. Attorney McGregor W. Scott announced.
According to court documents, between February and August 2018, Core participated in a scheme to defraud banks in which he and others used counterfeit U.S. Postal Service keys to break into residential mailboxes throughout Northern California. The scheme participants stole U.S. Mail from these mailboxes and pulled out bankcards, personal and business checks, and government-issued IDs, all belonging to the mail-theft victims. They then altered some of the checks and bankcards with the intent to use them to defraud financial institutions.
In one instance, in April 2018, Core deposited an altered check issued by JP Morgan Chase Bank into his own bank account at an ATM in Vallejo. By depositing the altered check, Core knowingly used the identity of a mail-theft victim without legal authority. Core committed these acts with the intent to defraud JP Morgan Chase, which was insured by the Federal Deposit Insurance Corporation.
On Aug. 29, 2018, Core and others were arrested in Granite Bay. At that time, Core possessed at least four counterfeit U.S. Postal Service keys and two U.S. Postal Service locks. Core possessed these items with the intent to commit identity theft and bank fraud, including using them to steal U.S. Mail. On that same date, Core also possessed at least 15 unauthorized bankcards.
This case is the product of an investigation by the U.S. Postal Inspection Service. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Core is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on April 27. Core faces a maximum statutory penalty of 30 years in prison and a fine of up to $1 million for the bank fraud, 10 years in prison and a fine of up to $250,000 for possession of mail keys, and a mandatory sentence of two years in prison consecutive to any other sentence imposed a fine of up to $250,000 for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
U.S. Enters into Trilateral Agreement with Nigeria and Jersey to Repatriate over $300 Million to Nigeria in Assets Stolen by Former Nigerian Dictator General Sani AbachaRead the Press Release
The Department of Justice, on behalf of the U.S. government, has executed a trilateral agreement with the governments of the Federal Republic of Nigeria (Nigeria) and the Bailiwick of Jersey (Jersey) to repatriate to Nigeria approximately $308 million traceable to the kleptocracy of former Nigerian dictator Sani Abacha and his co-conspirators.
In 2014, U.S. District Judge John D. Bates for the District of Columbia entered judgment forfeiting approximately $500 million located in accounts around the world, as the result of a civil forfeiture complaint the Department of Justice filed against more than $625 million traceable to money laundering involving the proceeds of Abacha’s corruption. After appeals in the United States were exhausted in 2018, the government of Jersey enforced the U.S. judgment against over $308 million located in that jurisdiction.
“General Abacha and his cronies robbed Nigerians of vast public resources and abused the U.S. and international financial systems to launder their criminal proceeds,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s landmark agreement returns to the people of Nigeria hundreds of millions of the embezzled monies through a lawful process that ensures transparency and accountability.”
The forfeited assets represent corrupt monies laundered during and after the military regime of General Abacha, who assumed the office of the president of the Federal Republic of Nigeria through a military coup on Nov. 17, 1993, and held that position until his death on June 8, 1998. The complaint alleges that General Abacha, his son Mohammed Sani Abacha, their associate Abubakar Atiku Bagudu and others embezzled, misappropriated and extorted billions from the government of Nigeria and others, then laundered their criminal proceeds through U.S. financial institutions and the purchase of bonds backed by the United States. Jersey’s cooperation in the investigation, restraint and enforcement of the U.S. judgment, along with the valuable contributions of Nigeria and other law enforcement partners around the world, have been instrumental to the recovery of these funds.
Under the trilateral agreement signed today, the United States and Jersey will transfer 100 percent of the net forfeited assets to the Federal Republic of Nigeria to support three critical infrastructure projects in Nigeria that were previously authorized by Nigerian president Muhammadu Buhari and the Nigerian legislature. Specifically, the laundered funds under this agreement will help finance the construction of the Second Niger Bridge, the Lagos-Ibadan Expressway and the Abuja-Kano road – investments that will benefit the citizens of each of these important regions in Nigeria.
The agreement includes key measures to ensure the transparency and accountability, including administration of the funds and projects by the Nigeria Sovereign Investment Authority (NSIA), financial review by an independent auditor, and monitoring by an independent civil society organization with expertise in engineering and other areas. The agreement also precludes the expenditure of funds to benefit alleged perpetrators of the corruption or to pay contingency fees for lawyers. The agreement reflects the sound principles for ensuring transparency and accountability adopted at the Global Forum on Asset Recovery (GFAR) in December 2016 in Washington, D.C., which the United States and the United Kingdom (UK) hosted with support from the Stolen Asset Recovery Initiative of the World Bank and United Nations Office on Drugs and Crime.
In addition to the more than $308 million forfeited in Jersey, the Department of Justice is seeking to enforce its forfeiture judgment against approximately $30 million located in the UK and over $144 million in France. The United States is also continuing to seek forfeiture of over $177 million in additional laundered funds held in trusts that name Abacha associate Bagudu, the current governor of Kebbi State, and his relatives as beneficiaries. The United States has asked the government of Nigeria to withdraw litigation it has instituted in the UK that hinders the U.S. effort to recover these additional funds for the people of Nigeria. The United States entered into the trilateral agreement to repatriate the Jersey assets because of its longstanding commitment to recover asset for the benefit of those harmed by grand corruption and because of the important safeguards embodied in the agreement.
This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section working in partnership with the FBI. Through the Kleptocracy Asset Recovery Initiative, the Department of Justice and federal law enforcement agencies seek to safeguard the U.S. financial system from criminal money laundering and to recover the proceeds of foreign official corruption. Where appropriate and possible, the department endeavors to use recovered corruption proceeds to benefit the people harmed by acts of corruption and abuse of public trust.
Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected]. The department appreciates the extensive assistance provided by the governments of Jersey, France, Nigeria and the UK in this investigation.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Two sentenced in securities fraud conspiracyRead the Press Release
HOUSTON – Two defendants charged in relation to a more than $40 million securities fraud “pump and dump” conspiracy have now been ordered to prison, announced U.S. Attorney Ryan K. Patrick.
John David Brotherton, 60, League City, pleaded guilty Feb. 12, 2019, while Charles Earl Grob, 39, Houston, admitted his guilt Dec. 5, 2018.
Today, U.S. District Judge Vanessa Gilmore imposed a 60-month sentence for Brotherton, while Grob received a sentence of 12 months.
Brotherton and Grob were also ordered to forfeit $1.9 million and $242,907.09, respectively, and serve three years of supervised release following their sentences. The court also ordered each man to pay restitution to the victims of the fraud. The amount will be determined at a later date.
Brotherton and Grob admitted they participated in a conspiracy to commit fraud in microcap securities. During the course of the conspiracy, they obtained control of the stock of numerous companies, then “pumped up” the price of the stock through false and misleading press releases and fraudulent trading techniques. They then “dumped” their shares of stock onto the market for a significant profit.
Brotherton, who is in now in custody following violations of his conditions of release, will remain there pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Grob was permitted to remain on bond and voluntarily surrender at a later date.
Five others - Andrew Ian Farmer, 41, Thomas Galen Massey, 49, Eddie Douglas Austin Jr., 69, and Carolyn Price Austin 65, all of Houston; and Scott Russell Sieck, 61, of Winter Park, Florida, also pleaded guilty for their respective roles and will be sentenced later this year.
The FBI conducted the investigation with the assistance of the Securities and Exchange Commission and Financial Industry Regulatory Authority. Assistant U.S. Attorneys Justin R. Martin and Michael Chu are prosecuting the case.
Texas Man Sentenced in South Florida to Ten Years in Federal Prison for his Role in Tricare and Medicare Fraud SchemeRead the Press Release
MIAMI – U.S. District Judge Cecilia M. Altonaga sentenced Senthil Kumar Ramamurthy, 38, of Texas, to 121 months in federal prison for his role in a scheme that defrauded Tricare and Medicare out of more than $9.6 million. Ramamurthy and his co-conspirators tricked beneficiaries into having the federal health care programs pay for medically unnecessary compounded prescription medicines and cancer genetic tests.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Cynthia Bruce, Special Agent In Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office, and SAC Omar Pérez Aybar, Special Agent in Charge for Health and Human Services, Office of Inspector General (HHS-OIG) made the announcement.
Tricare is the health care program for the U.S. military that pays the health care costs of active and retired military personnel and their families, including the costs of medically necessary prescription medications. Medicare is a federally-funded program that provides free or below-cost health care benefits to certain individuals, primarily the blind, elderly, and disabled.
On November 12, 2019, Ramamurthy pled guilty to conspiring to commit health care fraud and conspiring to defraud the United States and receive health care kickbacks.
According to court records, Ramamurthy and his co-conspirators targeted Tricare for about 10 months, starting in 2014. After deceiving their way onto U.S. military bases, Ramamurthy and his co-conspirators convinced Tricare beneficiaries to sign-up for compounded prescription medications that the beneficiaries did not need. To encourage sign-up, Ramamurthy and his co-conspirators falsely told the beneficiaries that the pharmacies would custom-design their medications or that the medications were free. In fact, the medications were not custom-designed and the patients had co-payments. Compounding pharmacies paid Ramamurthy and his co-conspirators millions of dollars in kickbacks in exchange for sending the pharmacies expensive prescription orders.
In mid-2015, Tricare scaled back its reimbursements for compounded medications. Ramamurthy and his co-conspirators turned to Medicare. They paid doctors to refer Medicare beneficiaries to a lab in Georgia for cancer genetic screening testing, even though the doctors had never examined the beneficiaries. As with the compounded medications, the cancer genetic screening tests were not medically necessary. The owner of the Georgia lab, Minal Patel, 40, was indicted in the Southern District of Florida in September 2019.
“Ramamurthy used our military families, our elderly, and our disabled to bilk millions of dollars from our country’s vital health care programs. He is set to spend the next 10 years in federal prison paying for that,” said U.S. Attorney Fajardo Orshan. “I commit to you that along with its federal law enforcement partners, the U.S. Attorney’s Office will continue to fight health care fraud in South Florida.”
"Senthil Ramamurthy’s conduct was part of a multi-million dollar fraud scheme perpetrated on the military's healthcare program. Today's sentencing is a testament of the Defense Criminal Investigative Service's fierce commitment to protect America's Warfighters and the integrity of their healthcare program. DCIS will work tirelessly with our law enforcement partners and Federal prosecutors in order to bring to justice any unscrupulous individuals or organizations who decide to compromise and abuse the interests, health and well-being of our men and women in the military," said Cyndy Bruce, Special Agent in Charge of the Defense Criminal Investigative Service, Southeast Field Office.
“Ramamurthy preyed upon unsuspecting beneficiaries to enrich himself; however, his unlawful actions led not to riches, but a 10-year prison sentence,” said Omar Pérez Aybar, Special Agent in Charge, Office of Inspector General for the U.S. Department of Health and Human Services. “We will continue working with our law enforcement partners to protect government-funded health care programs and the beneficiaries served by them.”
Additional co-conspirators of Ramamurthy have pleaded guilty to federal criminal charges arising out of the fraud scheme: Asif Uddin, 32, of Missouri, Karl Voeller, 34 of Delray Beach, Florida, Jennifer John Carbon, 48, of Miami, Florida, John Scholtes, 56 of Boca Raton, Florida, Anthony Mauzy, 43, of California, Thomas Sahs, 41, of California, Rajesh Mahbubani, 46, of Texas, and Dr. Mangala Ramamurthy, 64, of Texas. They are scheduled for sentencing in the Southern District of Florida in February 2020.
To date, fraudulent compounding pharmacy schemes have caused estimated losses to Tricare in excess of $2 billion. Fraudulent genetic testing lab schemes have caused estimated losses to Medicare of approximately $2.1 billion.
U.S. Attorney Fajardo-Orshan commended the investigative efforts of DCIS and HHS-OIG. Assistant United States Attorneys Kevin J. Larsen, Ana Maria Martinez, and John C. Shipley prosecuted the case. Assistant United States Attorney Daren Grove 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.
Steubenville man admits to drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Shannon Terill Loveless, of Steubenville, Ohio, has admitted to his role in a cocaine, crack cocaine, heroin, and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
Loveless, age 42, pled guilty to one count of “Conspiracy to Distribute Cocaine Hydrochloride, Cocaine Base, Heroin, and Fentanyl.” Loveless admitted to working with others to distribute cocaine, crack cocaine, heroin and fentanyl in Hancock County and elsewhere from February 2018 to August 2019.Loveless faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Danae DeMasi-Lemon and Robert H. McWilliams, Jr. are prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Marshall County Drug & Violent Crimes task Force, a HIDTA-funded initiative; The Ohio Valley Drug & Violent Crimes task Force, a HIDTA-funded initiative; the Jefferson County, Ohio, Drug & Violent Crimes Task Force; the Hancock County Sheriff’s Office; the Brooke County Sheriff’s Office; the Weirton Police Department; and the West Virginia Division of Natural Resources Police investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge James P. Mazzone presided.
Steubenville man admits to drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Rolland Kwame Owens, of Steubenville, Ohio, has admitted to his role in a cocaine, crack cocaine, heroin, and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
Owens, also known as “Buster,” age 30, pled guilty to one count of “Conspiracy to Distribute Cocaine Hydrochloride, Cocaine Base, Heroin, and Fentanyl.” Owens admitted to working with others to distribute cocaine, crack cocaine, heroin and fentanyl in Hancock County and elsewhere from February 2018 to August 2019.Owens faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Danae DeMasi-Lemon and Robert H. McWilliams, Jr. are prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Marshall County Drug & Violent Crimes task Force, a HIDTA-funded initiative; The Ohio Valley Drug & Violent Crimes task Force, a HIDTA-funded initiative; the Jefferson County, Ohio, Drug & Violent Crimes Task Force; the Hancock County Sheriff’s Office; the Brooke County Sheriff’s Office; the Weirton Police Department; and the West Virginia Division of Natural Resources Police investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge James P. Mazzone presided.
South Carolina Man Is Sentenced to 14 Years for Drug TraffickingRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Max O. Cogburn Jr. sentenced a South Carolina man to 168 months in prison and four years of supervised release for trafficking heroin and crack cocaine, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Veto Omar Martin, 41, of Anderson, S.C., received an enhanced prison sentence and was sentenced as a Career Offender due to his multiple prior drug trafficking convictions.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief David Zack of the Asheville Police Department (APD), join U.S. Attorney Murray in making today’s announcement.
According to court documents and today’s sentencing hearing, on November 30, 2018, officers with the Asheville Police Department’s Drug Suppression Unit executed a search warrant at a residence, and a vehicle parked in the driveway of the residence, in Asheville. While executing the search warrant, law enforcement recovered from inside the home narcotics and various drug paraphernalia. Law enforcement also arrested Martin, who was sitting in the driver’s seat of the parked vehicle. Inside the vehicle, law enforcement located heroin, crack cocaine, and other narcotics. According to court records, over the course of the investigation, Martin admitted to selling drugs in Asheville and surrounding areas, and using the Asheville residence to sell narcotics.
In October 2019, Martin pleaded guilty to possession with intent to distribute narcotics. He is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked the FBI and APD for handling the investigation.
Assistant U.S. Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Rapid City Man Indicted in Kidnapping of JuvenileRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Kidnapping of a Minor by a Registered Sex Offender and Transportation of a Minor with Intent to Engage in Criminal Sexual Activity by a Registered Sex Offender.
Christopher Bald Eagle, age 65, was charged on January 7, 2020. Bald Eagle appeared before U.S. Magistrate Judge Daneta Wollmann on January 29, 2020, and pleaded not guilty to the charges. The penalty upon conviction is a mandatory minimum of 35 years up to a maximum of life in federal prison and/or a $250,000 fine, a mandatory minimum of 5 years up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Bald Eagle, a previously registered sex offender, transporting a minor female from Pine Ridge, South Dakota, to Denver, Colorado, against her will in December 2019 and sexually assaulting her. The charges are merely an accusation and Bald Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by Federal Bureau of Investigation and the Denver Police Department. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Bald Eagle was detained pending trial. A trial date has not been set.
Rap Artist “Chad Focus” Pleads Guilty to Federal Wire Fraud ConspiracyRead the Press Release
Baltimore, Maryland – Chad Arrington, a/k/a “Chad Focus,” age 32, of Randallstown, Maryland, pleaded guilty today to a federal wire fraud conspiracy in connection with a scheme to use a company credit card to make over $4.1 million in unauthorized purchases.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, Arrington was employed by Company 1 as a Search Engine Optimization (“SEO”) Specialist from approximately 2011 to August 2018. As an SEO Specialist, Arrington was responsible for promoting and marketing Company 1’s products and services online. Company 1 assigned Arrington an American Express company credit card (the “credit card”) after Arrington signed an agreement in which he agreed to use the credit card only for business expenses related to Company 1.
Arrington admitted that from at least January 2015 through August 2018, Arrington and four co-conspirators used the credit card for fraudulent purchases, including to promote his hip-hop artist alter-ego, Chad Focus and Focus Music Entertainment and to make unauthorized purchases that benefitted them each personally. The co-conspirators were from Owings Mills, Maryland; York, Pennsylvania; Alexandria, Virginia; and Sarasota, Florida, respectively. According to the plea agreement, Arrington used the credit card to make over $1.5 million in unauthorized purchases from entities and accounts controlled by Co-Conspirator 2 and Co-Conspirator 3, and then Co-Conspirator 2 and Co-Conspirator 3, in turn, kicked back hundreds of thousands of dollars to Arrington by funneling cash payments to Arrington and to accounts controlled by Arrington.
For example, Arrington admitted that he used the credit card to purchase sound equipment, studio kits, instruments, and music technology, which he then used to create an artist alter-ego “Chad Focus,” and produce a number of hip-hop songs through the company he formed, Focus Music Entertainment LLC. Arrington then used the credit card to make additional unauthorized purchases: from online streaming platforms that offered services for artists to pay to have the platforms artificially increase Arrington’s song play counts on other music platforms; to purchase “likes,” “followers,” “tags,” and “views” across social media and viewing platforms; to purchase services from a company that promoted mixtape videos and singles, his image, and music; and to make unauthorized payments to multiple billboard companies to display images of Arrington and his website throughout the United States and to promote Chad Focus and Focus Music Entertainment LLC. From January 2015 through August 2018, Arrington charged the credit card over $300,000 for unauthorized international and national travel expenses, hotels, airfares, night life and other miscellaneous expenses for himself and for Co-Conspirators 1 and 2. In addition, Arrington made over $100,000 in unauthorized purchases of clothing and accessories, including hats that displayed his artist name “Focus,” and other apparel, which he provided to his associates free of charge. Arrington also admitted that he utilized the credit card to make more than $275,000 in purchases related to a bike-sharing business, including electric bikes, hover boards, and scooters. Arrington also admitted that he used the credit card for concert tickets, various unauthorized international and national travel expenses, including hotels, airfare, restaurant bills, luxury vehicle rentals, and nightlife expenses, and for travel expenses and airline tickets for the benefit of Co-Conspirators 1 and 2.
In order to conceal the scheme, Arrington asked Co-Conspirator 1 and Co-Conspirator 4 to use computer software to make false entries on the credit card billing statements in order to conceal the recipient of the payments from Arrington’s supervisor and Company 1. In addition, Arrington forged the signature of his supervisor on his credit card billing statements to make it appear as though he had received approval for certain purchases when, in fact, he had not. Arrington then sent those false payment authorizations to other employees who relied on the authorizations to ultimately pay off the outstanding balance of the credit card.
As detailed in his plea agreement, Arrington will be required to pay restitution in the full amount of the victim’s losses, $4,142,435.31.
Arrington faces a maximum sentence of 20 years in prison for the wire fraud conspiracy. U.S. District Judge Richard D. Bennett has scheduled sentencing for May 14, 2020 at 3:00 p.m.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Derek E. Hines and Mary W. Setzer, who are prosecuting the case.
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Pelham- And Bronx-Based Tax Preparer Pleads Guilty in White Plains Federal Court to Preparing and Filing False Income Tax ReturnsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Jonathan D. Larsen, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today that MICHAEL MAGNALDI, a former Pelham resident and an owner and operator of a Bronx-based tax preparation business, pled guilty to one count of aiding and assisting in the filing of false tax returns for tax years 2014 to 2017 and one count of subscribing to a false tax return for tax year 2016. MAGNALDI pled guilty before U.S. Magistrate Judge Paul E. Davison.
U.S. Attorney Geoffrey S. Berman said: “After serving in the New York City Department of Finance for 15 years, Michael Magnaldi betrayed the public’s trust by engaging in a years-long pattern of preparing false returns for clients and falsely understating his own income the same year he bought a $705,000 home in Pelham. Magnaldi’s fraudulent conduct undermined the government’s ability to fund its mandates and cost the government $476,184 in tax revenue. As we enter tax filing season, Magnaldi now stands convicted of two counts of criminal tax charges and awaits sentencing for his crimes.”
IRS-CI Special Agent-in-Charge Jonathan D. Larsen said: “As the tax season heats up, this is an important reminder to taxpayers to beware of unscrupulous tax return preparers. Fraudulent tax return preparers harm taxpayers, legitimate businesses, and the American public. IRS-CI is steadfast in its commitment to ending such tax fraud and today’s guilty plea shows the serious consequences for violating this nation’s tax laws.”
According to the allegations contained in the Information to which MAGNALDI pled guilty, MAGNALDI’s plea agreement, and statements made in court:
MAGNALDI has years of audit experience in the New York City Department of Finance. Since at least 2014, MAGNALDI owned and operated MGM Tax Solutions, a tax preparation business located in the Bronx, New York.
As charged in Count One of the Information, for the 2014 through 2017 tax years, MAGNALDI prepared for clients 37 false Forms 1040 containing, among other false information, false Schedule D capital losses, false Individual Retirement Account (“IRA”) contribution deductions, and false Education Tax credits. MAGNALDI unsuccessfully attempted to conceal his role in preparing these fraudulent tax returns by not listing his or any name as the return preparer, to make it seem as if the returns were self-prepared. In response to IRS correspondence audits, MAGNALDI caused additional false forms to be sent to the IRS, in an attempt to substantiate the false losses, deductions, and credits claimed on the tax returns. The total tax loss for the 37 false individual income tax returns of MAGNALDI’s clients is $232,767.
As charged in Count Two of the Information, in addition to the false filings prepared on behalf of his clients, MAGNALDI also falsely understated his own and his business’s income on their 2016 tax returns, the same year he bought a roughly $705,000 home in Pelham. Specifically, MAGNALDI falsely understated income on MGM Tax Solutions’ 2016 Form 1120S, which understated flow-through income on MAGNALDI’s 2016 Form 1040. The tax loss for MAGNALDI’s understatement of flow-through income is $243,417.
The total tax loss resulting from both schemes is $476,184.
* * *
MAGNALDI, 54, formerly of Pelham, New York, and currently living in St. Augustine, Florida, pled guilty to one count of aiding and assisting in the filing of false tax returns for tax years 2014 to 2017 and one count of subscribing to a false tax return for tax year 2016, each of which carries a maximum sentence of three years in prison. As part of the plea agreement, MAGNALDI has agreed to pay restitution to the IRS in the amount of at least $476,184 plus interest and penalties. Sentencing is scheduled for May 8, 2020, at 10:00 a.m., before U.S. District Judge Vincent L. Briccetti.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding work of IRS Criminal Investigation in this case.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorney David R. Felton is in charge of the prosecution.
Pawtucket Man Admits Robbing Two Banks Within WeeksRead the Press Release
PROVIDENCE – A Pawtucket man today admitted to robbing two banks within a span of four-weeks in mid-summer 2019, by presenting tellers with threatening notes.
Christopher S. Oladapo, 29, admitted that he robbed a Providence branch of Citizens Bank on July 27, 2019, of $3,268, and that he robbed a Citizens Bank branch in Pawtucket on August 31, 2019, of $2,031.
Oladapo admitted that in the first robbery he handed a note to a teller that read “Don’t be a hero there’s two of us in here Give me all the money in your draw Call police 15 mins after I walk out Your being watched keep your hands where I can see.”
In the second robbery he passed a note to a teller that read, “act normal give me all the money you have, you are being watched. Give me the note back and don’t call the police for 20 minutes.”
Appearing today before U.S. District Court Judge William E. Smith, Oladapo pleaded guilty to two counts of bank robbery, announced United States Attorney Aaron L. Weisman, Providence Police Chief Colonel Hugh T. Clements, Jr., Pawtucket Police Chief Tina Goncalves, and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
Oladapo is scheduled to be sentenced on May 8, 2020.
The case is being prosecuted by Assistant U.S. Attorneys Christine D. Lowell and Sandra R. Hebert.
The robberies were investigated by the Providence and Pawtucket Police Departments, with the assistance of the FBI.
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Pawn Shop Owner Pleads Guilty to Tax EvasionRead the Press Release
LAS VEGAS, Nev. – Barbara Doutt Forbes, 58, of Las Vegas, pleaded guilty today to one count of tax evasion, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Tara Sullivan for the IRS-Criminal Investigation.
According to court documents, from 1997 to 2017, Forbes owned six pawn shops in North Dakota and South Dakota. From 2009 to 2012, she directed employees to delete gold jewelry from the stores’ electronic inventory and send that jewelry to her in Las Vegas. Forbes then sold the gold jewelry to a refining company in Philadelphia. In exchange, the refining company wired a total of $855,116 to Forbes’ personal bank accounts. Forbes failed to report this income on her tax returns. During an IRS audit of her tax returns, Forbes created and provided to the IRS false bank statements that omitted the wire transfers. As a result, Forbes owed $281,388 in income taxes to the United States. As part of her plea agreement, Forbes agreed to pay the full amount of owed income taxes back to the IRS.
This case was the product of an investigation by the IRS-Criminal Investigation. Assistant U.S. Attorney Jamie Mickelson is prosecuting the case.
Forbes is scheduled to be sentenced by U.S. District Judge Jennifer A. Dorsey on May 11, 2020. Forbes faces a maximum statutory penalty of five years in years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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Owsley County Man Pleads Guilty to Methamphetamine Trafficking and Possession of Firearm in Furtherance of Drug TraffickingRead the Press Release
LONDON, Ky.- James Everett Smith, 51, of Booneville, Kentucky, admitted in federal court Monday, before U.S. District Judge Robert Wier, that he possessed with intent to distribute 500 grams of more of methamphetamine and possessed a firearm in furtherance of drug trafficking.
Smith admitted that on September 23, 2018, law enforcement officers responded to a report of shots fired near his residence. Officers approached Smith as he attempted to get in his van and found him in possession of 19 grams of methamphetamine and two pistols. Smith gave officers permission to search his residence, where they found approximately 685 grams of methamphetamine, two additional pistols, two shotguns, $1,170, and digital scales. In his plea agreement, Smith acknowledged possessing the methamphetamine with the intent to distribute it, and to possessing the firearms in furtherance of drug trafficking.
According to the plea agreement, Smith was prohibited from possessing firearms because of multiple prior felony convictions, including two 2006 Manufacturing Methamphetamine convictions from Owsley County.
Smith was indicted in June 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Acting Special Agent in Charge for the Louisville Division of ATF; and Commissioner Rodney Brewer, Kentucky State Police; jointly announced the guilty plea.
The investigation was conducted by KSP and ATF. The United States was represented by Assistant U.S. Attorney Jason Parman.
Smith is scheduled to be sentenced on May 19, 2020. He faces a mandatory minimum 20 years in prison, up to life in prison, and a maximum fine of $20 million. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This is a 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 Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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. Click here for more information about Project Guardian.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Owners of Underground, International Financial Institutions Plead Guilty to Operating Unlicensed Money Transmitting BusinessRead the Press Release
SAN DIEGO – Bing Han and Lei Zhang pleaded guilty in federal court today for operating unlicensed money transmitting businesses. Their guilty pleas are believed to be the first in the United States for a developing form of unlawful underground financial institution that transfers money between the United States and China, thereby circumventing domestic and foreign laws regarding monetary transfers and reporting, including United States anti-money laundering scrutiny and Chinese capital flight controls.
Special Agents from Homeland Security Investigations, IRS Criminal Investigation Las Vegas Financial Crimes Task Force, and the Drug Enforcement Administration led the investigation into Han’s and Zhang’s financial operations. As admitted in the plea agreements entered today before U.S. Magistrate Judge William V. Gallo, Han and Zhang would collect U.S. dollars (in cash) from various third-parties in the United States and deliver that cash to a customer, typically a gambler from China who could not readily access cash in the United States due to capital controls that limit the amount of Chinese yuan an individual can convert to foreign currency at $50,000 per year. Upon receipt of the U.S. dollars, the customer (i.e., the gambler) would transfer the equivalent value of yuan (using banking apps on their cell phones in the United States) from the customer’s Chinese bank account to a Chinese bank account designated by defendant Han or Zhang. For facilitating these transactions, Zhang and Han were paid a commission based on the monetary value illegally transferred.
U.S. Attorney Robert S. Brewer, Jr. said, “The United States stands vigilant against the constantly evolving ways in which individuals and organizations seek to operate outside the conventional financial system. Violating United States anti-money laundering laws not only endangers the integrity of the global financial system, but doing so hinders the ability of law enforcement officers to confront criminal conduct including money laundering and narcotics trafficking.”
Han and Zhang further admitted today that they were regularly introduced to customers by casino hosts, who sought to increase the gambling play of the casino’s customers. By connecting cash-starved gamblers in the United States with illicit money transmitting businesses, like those operated by Han and Zhang, the casinos increased the domestic cash play of their China-based customers. All a gambler needed was a mobile device that had remote access a China-based bank account. As a result, Han and Zhang managed to transmit and convert electronic funds in China into hard currency in the United States; all while circumventing the obstacles imposed both by China’s capital controls, and the anti-money laundering scrutiny imposed on all United States financial institutions. For their efforts, the casino hosts often received a cut of Han’s or Zhang’s commission.
“This case demonstrates that those who attempt to use underground or unregulated money transfer systems cannot evade detection and punishment,” said Cardell T. Morant, acting Special Agent in Charge for HSI San Diego. “HSI and our domestic and foreign partners will continue to work together aggressively to investigate and prosecute those who seek to hide their involvement in transnational crime by employing such international money laundering schemes.”
“Criminals keep trying to find ways to circumvent our financial system by laundering money,” said Tara Sullivan, Special Agent in Charge of IRS Criminal Investigation Las Vegas. “Unfortunately for Han and Zhang, the IRS Criminal Investigation Las Vegas Financial Crimes Task Force was relentless in seeking out and disrupting their underground banking network and will continue to work with our law enforcement partners to uphold anti-money laundering laws”.
“Although Mr. Han and Mr. Zhang did not admit to transacting narcotics proceeds in their unlicensed money transmitting businesses, we know that drug trafficking organizations are willing to use a variety of businesses to launder proceeds from the sales of drugs,” said DEA Special Agent in Charge John W. Callery. “DEA and our outstanding partners will continue to investigate illicit financial transactions and anyone who may operate businesses that stand to profit from illegal drug sales.”
U.S. Attorney Brewer commended the diligence and dedication of Assistant U.S. Attorneys Daniel Silva and Mark W. Pletcher, the prosecutors on this case. Sentencing for Mr. Han is scheduled to occur on May 1, 2020 before Hon. Janis L. Sammartino. Sentencing for Mr. Zhang is scheduled to occur on May 4, 2020 before Hon. William Q. Hayes. Han and Zhang both face a maximum of 5 years in prison.
DEFENDANTS Case Numbers 20-CR-369-JLS (Han)
Case Number 20-CR-370-WQH (Zhang)
Bing Han Las Vegas, NV Age: 44
Lei Zhang Las Vegas, NV Age: 40
SUMMARY OF CHARGES*
Operation of Unlicensed Money Transmitting Business – Title 18, U.S.C., Section 1960
Maximum penalty: Five years in prison and $250,000 fine
AGENCIES
Homeland Security Investigations
IRS Criminal Investigation Las Vegas Financial Crimes Task Force
Drug Enforcement Administration
*The charges and allegations contained in an indictment or information are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Omaha Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
United States Attorney Joe Kelly announced that Michael Stine, 33, of Omaha, Nebraska, was sentenced today to 46 months in prison by Senior United States District Judge Laurie Smith Camp for being a felon in possession of a firearm. There is no parole in the federal system. Following his release from prison, Stine will serve 3 years of supervised release.
On February 22, 2019, officers observed a 2008 Jetta parked in a handicapped stall at America’s Best Hotel parking lot. Officers ran a data check on the plates and determined that the plates belonged to another vehicle. Officers made contact with the vehicle and observed four occupants. The officer ran a data check and learned that Stine was a convicted sex offender who had a warrant out for his arrest out of Kansas. The officers attempted to remove Stine from the vehicle and he resisted. A Taser was utilized and he fell out of the vehicle, dropping a short shotgun. Stine has a prior felony conviction and is prohibited from possessing a firearm.
This case was investigated by the Omaha Police Department.
New Bedford "Middle-Man" in Crack Cocaine Sales Pleads GuiltyRead the Press Release
PROVIDENCE – A New Bedford man appeared in U.S. District Court in Providence today and admitted that on at least four occasions he served as a middle-man in the sale and delivery of crack cocaine to an individual in Rhode Island.
Jordan Fernandes, 30, admitted that between February 12, 2018, and August 9, 2018, he participated in the sale and delivery of between 13.9 and 33.08 grams of crack cocaine for between $850 and $2,550.
The sale price included a delivery fee Fernandes established for each transaction.
Appearing today before U.S. District Court Judge William E. Smith, Fernandes pleaded guilty to two counts of conspiracy to possess with intent to distribute cocaine base and four counts of possession with intent to distribute and distribution of cocaine base.
Fernandes is scheduled to be sentenced on May 8, 2020.
Fernandes’ guilty plea is announced by United States Attorney Aaron L. Weisman, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, and Providence Police Chief Colonel Hugh T. Clements, Jr.
The case is being prosecuted by Assistant United States Attorney Terrence P. Donnelly.
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Minnetonka Personal Injury Attorney Pleads Guilty to Health Care Fraud ConspiracyRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of WILLIAM KYLE SUTOR III, 37, to conspiracy to commit health care fraud. SUTOR, who was charged by felony Information on December 30, 2019, entered his plea today before Judge Nancy E. Brasel in U.S. District Court in St. Paul, Minnesota. SUTOR will be sentenced at a later date.
United States Attorney Erica H. MacDonald stated, “This defendant, a personal injury attorney, participated in an all too common healthcare fraud scheme involving a network of chiropractors and runners. The #1 goal of the scheme was to steal money from insurance providers, resulting in higher premiums for Minnesota consumers. This is unacceptable. I applaud the diligent investigators and prosecutor who continue to pursue these cases.”
“The conduct perpetrated by Mr. Sutor makes it harder for the legitimate lawyers and health care providers to help Minnesotans who really are injured,” said Minnesota Department of Commerce Commissioner Steve Kelley. “The agents at the Minnesota Commerce Fraud Bureau will continue to investigate individuals who think they are above the law.”
“As demand for health benefits goes up, so do the losses from health care fraud like this,” said FBI Minneapolis Special Agent in Charge, Jill Sanborn. “Our special agents in partnership with Minnesota Commerce Fraud Bureau used every tool we have to dissect this scheme and stop this defendant before he could do more damage,” Sanborn said.
According to the defendant’s guilty plea and documents filed in court, between 2015 and 2016, SUTOR, a licensed personal injury attorney, engaged in a scheme to defraud providers of automobile insurance policies. SUTOR began working with chiropractors and patient recruiters, referred to as “runners.” As part of the scheme, the chiropractor would pay the runner a fee, typically between $1,000 and $1,500, for every individual that the runner brought to the chiropractor’s clinic to become a patient. In addition, SUTOR would pay the runner a fee, typically $300, for every individual that became a client of SUTOR’s. SUTOR, the chiropractors, and the runners took steps to conceal their scheme, including making kickback payments in cash or by checks written out to appear that they were payments for legitimate legal services.
This case is the result of an investigation conducted by the Minnesota Commerce Fraud Bureau and the FBI.
Assistant U.S. Attorney David J. MacLaughlin is prosecuting the case.
Defendant Information:
WILLIAM KYLE SUTOR III, 37
Minnetonka, Minn.
Convicted:
- Conspiracy to commit health care fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Mexican man admits to smuggling tons of marijuanaRead the Press Release
LAREDO, Texas – A 34-year-old citizen of Mexico has pleaded guilty to importing a large quantity of marijuana into the United States, announced U.S. Attorney Ryan K. Patrick.
On Nov. 30, 2019, Juan Antonio Hernandez-Zapata attempted to enter into the United States in a commercial tractor trailer at the World Trade Bridge in Laredo. There, a K-9 alerted to the possible presence of narcotics. Following a subsequent x-ray examination, authorities located 214 bundles in his trailer which tested positive for marijuana.
The drugs weighed approximately 5,360 pounds (approximately 2.5 tons) and have a street value of over $1 million.
Sentencing will be set before U.S. District Judge Diana Saldana at a later date. At that time, Hernandez-Zapata faces up to life in federal prison and a possible $10 million maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection. Assistant U.S. Attorney Jennifer Day is prosecuting the case.
Methamphetamine Dealer Sentenced to Ten Years in PrisonRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Darell Leon Hardin was sentenced to 10 years imprisonment on January 14, 2020 for his participation in a methamphetamine distribution conspiracy. Hardin pled guilty to the charge in August of 2018.
United States District Court Judge William H. Steele imposed the 10-year sentence. The judge ordered that when Hardin is released from imprisonment, he will serve five years of supervised release. Court records established that on December 7, 2017 the Drug Enforcement Administration (DEA) made a controlled buy of 223.36 grams of methamphetamine from Hardin. Hardin, from California, was seen by law enforcement agents when he got off a bus in Mobile the previous day. Further surveillance showed the defendant arrive at the buy location and get into and exit the confidential informant’s vehicle at the location of the buy. There were also numerous recorded telephone calls to the defendant setting up the controlled buy. Hardin delivered the 223.36 grams of methamphetamine to the informant. Hardin was later arrested in California and he had a kilogram of methamphetamine in his home during the arrest and search of his home.
The case was investigated by the Drug Enforcement Administration and the City of Mobile Police Department, Narcotics Unit. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney George May.
Methamphetamine Dealer Sentenced to More Than Seven Years in PrisonRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Wayne Maurice Lafitte was sentenced to 85 months imprisonment on January 15, 2020 for his participation in a methamphetamine distribution conspiracy. Lafitte pled guilty to the charge in June of 2018.
United States District Court Judge Callie V.S. Granade imposed the 85 month sentence. The judge ordered that when Lafitte is released from imprisonment, he will serve ten years of supervised release. Court records established that Mobile County Sheriff’s Office narcotics officers executed a search warrant at a storage facility where Lafitte stored methamphetamine and recovered approximately 584 grams of methamphetamine.
In addition, on June 13, 2017 a Mobile County Street Enforcement Narcotics Team (MCSENT) confidential informant (CI) ordered methamphetamine from Lafitte. Lafitte sent Exaviera Deagnes Maxie to deliver the methamphetamine and Maxie delivered approximately 7.3 grams of methamphetamine from Lafitte to the CI. On June 26, 2017, MCSENT officers executed a search warrant at Maxie’s home in Mobile County and recovered approximately 24.6 grams of methamphetamine from Maxie’s purse. The methamphetamine was packaged for resale. Maxie obtained the methamphetamine from Lafitte.The case was investigated by the Department of Homeland Security, Homeland Security Investigations, the Mobile County Sheriff’s Office and the Mobile County Street Enforcement Narcotics Team. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney George May.
Member of Violent Baltimore “Trained to Go” Gang Pleads Guilty to Federal Racketeering and Drug ConspiraciesRead the Press Release
Baltimore, Maryland – Roger Taylor, a/k/a Milk, age 28, of Baltimore, pleaded guilty today to the federal charges of conspiring to participate in a violent racketeering enterprise known as Trained To Go (TTG), and to conspiracy to possess with intent to distribute controlled substances. Taylor, a fugitive since July 2017, was arrested on June 30, 2019. The racketeering activities to which Taylor pleaded guilty are: narcotics distribution and robberies of other individuals, including rival drug dealers and gang members in TTG territory.
In a related case, on January 31, 2020, John Lewis Harrison, a/k/a Binky, age 29 and Taurus Tillman, age 30, a/k/a Tosh, both of Baltimore, Maryland, pleaded guilty to the federal charge of assaulting employees of the U.S. Marshals Service (USMS) while they were detained and being transported to and from the courtroom during their trial.
The guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; U.S. Marshal Johnny Hughes; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Anne Arundel County Police Chief Tim Altomare; and Baltimore City State’s Attorney Marilyn J. Mosby.
“Roger Taylor and his fellow gang members brought violence and misery to West Baltimore, in the form of murders, armed robberies, and drug dealing. After his capture as a fugitive from justice, Taylor will now likely spend over a decade in federal prison,” said U.S. Attorney Robert K. Hur. “Criminals who are terrorizing our neighborhoods should be deterred by the reality of years spent in a federal prison far from home—where there is no parole. Ever.”
According to his plea agreement, Taylor was associated with a drug trafficking organization that operated in the Sandtown neighborhood of West Baltimore. As part of the conspiracy, each defendant agreed that a conspirator would commit at least two acts of racketeering activity. Taylor was self-identified member of a group, known as the “Young Go Getters” (YGG), which assisted members and associates of the criminal enterprise in their activities. As of 2014, the organization became known as “Trained To Go” or “TTG.”
As detailed in his plea agreement, Taylor, who referred to himself as YGG Milk, along with other members of YGG, provided support to TTG in the form of money, drugs, and other assistance. For example, on January 22, 2016, law enforcement learned that two members of TTG were looking for several individuals that had robbed a member of TTG of a small quantity of narcotics. The two members of TTG were spotted by law enforcement driving in the area of the 2500 block of West Lafayette Avenue in west Baltimore. In an effort to escape the police, the occupants of the car fled after crashing into a snow bank. Investigation revealed the car had been provided to them by Taylor.
On August 10, 2015, Postal Inspectors interdicted four packages addressed to a fictitious addressee in Windsor Mill, Maryland. Because the address was also a false address, the packages could not be delivered. Taylor, in an effort to obtain the packages, contacted the post office and requested the packages be re-delivered to a different address in Windsor Mill. Additional investigation revealed that the four packages contained 9.9 kilograms of cocaine.
During the course of the conspiracy, the quantity of cocaine within the scope of Taylor’s agreement with his co-conspirators and reasonably foreseeable as to Taylor was equivalent to between 15 and 50 kilograms of cocaine.
Taylor and the government have agreed that, if the Court accepts the plea agreement, Taylor will be sentenced to between 11 and 14 years in federal prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for April 1, 2020.
The leader of the gang, Montana Barronette, a/k/a Tana, and Tanner, age 23, and his brother, Terrell Sivells, a/k/a Rell, age 27, both of Baltimore, were each sentenced to life in prison on February 15 and April 26, 2019, respectively. Co-defendants Brandon Wilson, a/k/a Ali, age 24, and Taurus Tillman, a/k/a Tash, age 30, both of Baltimore, were each sentenced to 25 years in prison on March 1 and May 21, 2019, respectively. Two other co-defendants, John Harrison, a/k/a Binkie, age 28, and Linton Broughton, a/k/a Marty, age 25, both from Baltimore, were sentenced to life in prison and to 30 years in prison, respectively, on March 15, 2019. Three other TTG members previously pleaded guilty and were sentenced to between five and 25 years in prison.
As detailed in the plea agreements of Harrison and Tillman, from September 17, 2018 through October 31, 2018, a criminal trial was held in U.S. District Court in Baltimore, in the matter of United States v. Barronette, et al. Harrison and Tillman were both defendants in the case and were detained before and during the trial. During the trial, members of the U.S. Marshals Service were responsible for transporting the defendants, including Harrison and Tillman, to and from the courtroom.
Harrison and Tillman admitted that on September 21, 2018, they assaulted two Deputy U.S. Marshals and a U.S. District Court Security Officer as they were being escorted from the courtroom during a break in the trial.
Tillman was immediately sentenced to one year in federal prison, consecutive to the 25 years he is already serving for the racketeering conspiracy. U.S. District Judge Catherine C. Blake has scheduled sentencing for Harrison on April 29, 2020.
The investigation was conducted by the FBI Baltimore Safe Streets Violent Gang Task Force, which includes FBI special agents and task force officers from the Baltimore, Baltimore County, and Anne Arundel County Police Departments. FBI Baltimore Safe Streets Violent Gang Task Force is responsible for identifying and targeting the most violent gangs in the Baltimore metropolitan area, to address gang violence and the associated homicides in Baltimore. The vision of the program is to use federal racketeering statutes to disrupt and dismantle significant violent criminal threats and criminal enterprises affecting the safety and well-being of our citizens and our communities.
This case was further assisted by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur and Assistant Attorney General Brian A. Benczkowski commended the FBI, the Baltimore Police Department, U.S. Marshals Service, the U.S. Postal Inspection Service, the ATF, the DEA, the Anne Arundel County Police Department, and the Office of the State’s Attorney for Baltimore City for their work in these investigations. Mr. Hur thanked Assistant U.S. Attorneys Christopher J. Romano, Daniel C. Gardner, and Special Assistant U.S. Attorney John C. Hanley formerly of the Justice Department’s Organized Crime and Gang Section, who prosecuted this Organized Crime Drug Enforcement Task Force case.
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Martinsburg man sentenced for child pornography chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Benjamin Campbell, of Martinsburg, West Virginia, was sentenced today to five years probation for possessing child pornography, U.S. Attorney Bill Powell announced.
Campbell, age 21, pled guilty to one count of “Possession of Child Pornography” in April 2019. Campbell admitted to having child pornography in his possession between February 2017 and May 2018 in Berkeley County.
Campbell faces up to 20 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The West Virginia State Police investigated.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Chief U.S. District Judge Gina M. Groh presided.
Man Sentenced to 15 Years in Prison for Multiple Bank Robberies and Carjacking After Escaping from A Correctional FacilityRead the Press Release
LAS VEGAS, Nev. — A Las Vegas resident who admitted to committing nine bank robberies after escaping from a correctional facility was sentenced today to 15 years in prison, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division.
William Etheridge, 57, pleaded guilty in October 2019, to 11 counts of bank robbery, carjacking, and escape. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey sentenced Etheridge to three years of supervised release and ordered him to pay $18,397.90 in restitution.
According to court documents, on May 18, 2017, Etheridge escaped from the Northwest Regional Reentry Center, a contracted correctional facility of the Federal Bureau of Prisons in Oregon, where he was in custody for a federal bank robbery conviction. Shortly after his escape, between June 2, 2017 and July 19, 2017, Etheridge robbed nine banks in Oregon and Washington, and attempted to rob another bank in Oregon.
On July 25, 2017, Etheridge, who was armed, stole $18,120 from a credit union in Las Vegas. He demanded that one of the tellers leave the credit union with him, then carjacked a vehicle with two victims inside. At Etheridge’s request, the victims dropped him off at a motorcycle dealership to purchase a motorcycle for use as a getaway vehicle. Law enforcement arrested Etheridge while he was at the dealership.
This case was the product of an investigation by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Nicholas Dickinson prosecuted the case.
Etheridge was investigated in three federal jurisdictions for his crimes: the District of Nevada, the Western District of Washington, and the District of Oregon.
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Man Extradited for 2006 Manhattan MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of a superseding federal indictment charging EDWIN CORTORREAL, a/k/a “Crazy Ed,” with the October 27, 2006, murder of Kelly Diaz in the Washington Heights neighborhood of New York, and other crimes. CORTORREAL, 33, was extradited to the United States from the Dominican Republic to face the charges in the superseding indictment. CORTORREAL was presented and arraigned today before U.S. District Judge Valerie E. Caproni, to whom the case is assigned.
U.S. Attorney Geoffrey Berman said: “As alleged, the defendant shot and killed Kelly Diaz in his home. We thank the FBI and the NYPD for their outstanding work investigating this terrible murder. We will continue our efforts with our law enforcement partners to prosecute such senseless acts of violence.”
NYPD Commissioner Dermot Shea said: “Edwin Cortorreal was brought to justice as a result of unrelenting investigative work by NYPD officers and FBI agents in partnership with our law enforcement colleagues here and overseas and the outstanding team of prosecutors assembled by U.S. Attorney Berman. I applaud the efforts to bring justice in this case.”
According to the superseding indictment and statements made in related court filings and proceedings[1]:
The Hot Boys were a crew of professional home invaders active in Washington Heights and elsewhere from at least 2006 through 2017. On October 27, 2006, CORTORREAL and four others used a hydraulic pump to silently force open the door of Diaz’s apartment. CORTORREAL and two others then burst into Diaz’s home, subdued Diaz and his wife, and forced Diaz onto the ground. CORTORREAL, armed with a gun, stood over Diaz while the rest of the crew ransacked the apartment. As the crew began to leave, CORTORREAL shot and killed Diaz.
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CORTORREAL is charged with conspiring to commit racketeering through the commission of various criminal acts, including murder, in violation of Title 18, United States Code, Section 1962(d); murder in aid of racketeering, in violation of Title 18, United States Code, Section 1959(a)(1); conspiracy to distribute narcotics, in violation of Title 21, United States Code, Section 846; use of a firearm, resulting in death, during a drug-trafficking crime, in violation of Title 18, United States Code, Section 924(j); and other uses of firearms during a drug-trafficking crime, in violation of Title 18, United States Code, Section 924(c). Each of these crimes carries a maximum term of life in prison, and murder in aid of racketeering carries a mandatory minimum term of life 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.
Mr. Berman praised the outstanding investigative work of the FBI and the NYPD. Mr. Berman also thanked the Dominican authorities, the Office of International Affairs of the Justice Department’s Criminal Division, and the United States Marshals Service for their assistance in the extradition.
The prosecution of this case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Hagan Scotten and David W. Denton Jr. are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Last of four sentences handed down in Trumbull County explosives and firearms caseRead the Press Release
Four Trumbull County men convicted in an ATF investigation have been sentenced in federal court.
Donald Paul Phillips, age 28 of Mineral Ridge, was sentenced to 24 months in prison for two counts relating to the illegal manufacture and distribution of explosives, and one count of possessing firearms after a domestic violence conviction.
Andrew Syacsure, age 31 of Niles, was sentenced to 4 months of home detention and 3 years of probation for one count of conspiring to manufacture and distribute explosives.
Zachary Booth, age 30 of Warren, was sentenced to 3 years of supervised probation for one count of distributing explosives without an ATF license.
And Donald Roger Phillips, age 50 of Mineral Ridge, was sentenced to 5 months of home detention, 3 years of probation, and a $1,000 fine for one count of possessing a firearm after a domestic violence conviction. All four defendants pled guilty.
According to court records:
In early 2019, ATF agents learned that Zachary Booth was offering to sell homemade explosive devices. ATF agents began an undercover operation and purchased 11 homemade explosive devices from Booth. The devices appeared similar to large M-80 fireworks, but contained hundreds of times more flash powder than consumer ground fireworks.
After further investigation, the ATF learned that Booth had obtained the explosive devices from Donald Paul Phillips. ATF agents then used an undercover agent to make multiple purchases of the devices from Donald Paul Phillips outside his workplace in Niles.
On May 2, 2019, ATF agents arrested Donald Paul Phillips at his workplace in Niles and found a handgun in his toolbox. Phillips was prohibited from possessing a firearm or ammunition due to two prior convictions for domestic violence.
Law enforcement also executed a search warrant at Donald Paul Phillips' residence in Mineral Ridge, where he lived with his father (Donald Roger Phillips) and step-mother. During the search warrant, law enforcement found another handgun under Donald Paul Phillips' bed, and over a dozen firearms in a gun storage room immediately adjacent to his bedroom. The firearms discovered in the gun storage room included multiple high-capacity magazines and a device that was later determined to be a silencer. Law enforcement also found more than 500 homemade explosive devices in the breezeway of the home, and a loaded shotgun in Donald Roger Phillips's bedroom closet. Donald Roger Phillips was also prohibited from possessing a firearm or ammunition due to a prior domestic violence conviction.
ATF agents then conducted a search of Syacsure's home in Niles, and found evidence of explosives manufacturing in Syacsure's basement, which included workbenches, tubs of ingredients used to make flash powder, and empty cardboard fuses and tubes.
In total, the ATF seized over 900 homemade explosive devices and over a dozen illegally possessed firearms during the investigation.
The case was investigated by the ATF, with assistance from the Niles Police Department, the Weathersfield Police Department, and members of the Youngstown Bomb Squad. The case was prosecuted by Assistant U.S. Attorney James Lewis.
Laredoan admits to smuggling 27 in tractor trailerRead the Press Release
LAREDO, Texas – A 32-year-old Laredo man has entered a guilty plea to conspiring to transport undocumented aliens, announced U.S. Attorney Ryan K. Patrick.
On Nov. 12, 2019, Roy Andy Olivares arrived at the Border Patrol Checkpoint located on U.S. Highway 83 north of Laredo. There, a K-9 alerted to the possible presence of concealed humans in the trailer. Authorities conducted a search and found 27 undocumented aliens, three of whom were minors.
At a hearing today before U.S. Magistrate Judge Diana Song Quiroga, Olivares admitted he knowingly attempted to smuggle the undocumented aliens past the checkpoint.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing at a later date. At that time, Olivares faces a possible 10-year prison term as well as a possible $250,000 maximum fine.
He has been and will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Michael Makens is prosecuting the case.
Kern County Man Unlawfully Manufacturing Short Barrel Rifles Pleads Guilty to Federal Gun ChargeRead the Press Release
FRESNO, Calif. — Julian Burmado, 30, of Bakersfield, pleaded guilty today to possessing firearms not registered to him in the National Firearms Registry, U.S. Attorney McGregor W. Scott announced.
According to court documents, Burmado manufactured rifles with various barrel lengths and offered the rifles for sale. On Oct. 3, 2018, Burmado was arrested in possession of five rifles of varying lengths. One barrel was longer than 16 inches as required by law, but three rifles had barrel lengths of 12 inches and one had a barrel length of 9 inches. None of the short barrel rifles were registered with the National Firearms Registry.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bakersfield Police Department. Assistant U.S. Attorney Melanie L. Alsworth is prosecuting the case.
Burmado is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on May 11. Burmado faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve 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 law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
Justice Department and FTC Announce Workshops on Draft Vertical Merger Guidelines, Extend Comment PeriodRead the Press Release
The Department of Justice and Federal Trade Commission today announced two public workshops, on March 11, 2020 and March 18, 2020, to solicit public dialogue on the draft vertical merger guidelines released on Jan. 10, 2020. The two half-day workshops will allow for a dynamic discussion about the proposed guidelines to complement any written public comments about the draft guidelines that are submitted to the agencies. The agencies will select panelists for the workshops from those that file public comments and indicate their interest and availability to participate.
The agencies also announced today that they will extend the deadline for submitting public comments regarding the draft vertical merger guidelines. The new final deadline for submitting comments is Feb. 26, 2020.
“The Antitrust Division has benefitted greatly from public engagement in preparing the draft guidelines, and I expect that will continue through the comment and workshop process,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Afterwards, we look forward to finalizing the first update to our vertical merger guidelines in more than three decades.”
The draft guidelines describe how the federal antitrust agencies review vertical mergers to evaluate whether they violate antitrust law. Vertical mergers combine two or more companies that operate at different levels of the supply chain. The draft guidelines outline the agencies’ principal analytical techniques, practices, and enforcement policy for vertical mergers. The agencies will consider both public comments and workshop discussions before issuing final Vertical Merger Guidelines.
The Department of Justice encourages comments from the public on the draft vertical merger guidelines. Interested parties may submit public comments online now through Feb. 26, 2020, by emailing [email protected] and [email protected]. Commenters should indicate in the email if they are interested in participating in either workshop as a panelist and the date(s) they are available.
Both workshops are free and open to the public. The March 11, 2020 workshop will take place at the Robert F. Kennedy Department of Justice Building, 950 Pennsylvania Avenue, NW, Washington, D.C., from 1 p.m. Eastern Time to 5 p.m. Eastern Time and the March 18, 2020 workshop will take place at the Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, D.C., from 1 p.m. Eastern time to 5 p.m. Eastern Time. A recording of the workshop will be available on the Division’s website. Registration information, an agenda, directions to the event, and a list of speakers will be available prior to each workshop on the event webpage. Attendees are encouraged, but not required, to register in advance for the workshop. Registration for the March 11 workshop may be completed on Eventbrite. Members of the press should also copy [email protected] on their registration email. Seating will be on a first-come, first-served basis. Attendees should bring a valid government-issued photo ID (government badge, license, passport, etc.) and arrive in time to go through security.
Reasonable accommodations for people with disabilities are available upon request. If you need such an accommodation, please contact the Antitrust Division at [email protected]. Such requests should include a detailed description of the accommodations needed and a way to contact you if we need more information.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Justice Department Settles with Child Care Providers to Protect the Rights of Children with DiabetesRead the Press Release
The Justice Department entered into two settlement agreements today to resolve allegations that two child care providers violated the Americans with Disabilities Act (ADA) by failing to reasonably modify its program to accommodate the needs of young children with Type 1 diabetes and disenrolling them on the basis of their disabilities. One agreement is with Lil’ Einstein’s Learning Academy, which operates child care facilities in Bear and Newark, Delaware and Chesapeake City and Elkton, Maryland. The second agreement is with the Community First School Corporation, which operates a child care facility in Sunnyvale, California. These settlements resolve allegations that two child care centers discriminated against children and their parents on the basis of their children’s disabilities shortly after each child was diagnosed with Type 1 diabetes.
“No child with a disability should be unlawfully denied access to a child care center on the basis of his or her disability. Simply put, no parent should have to worry that his or her child will be discriminated against in this way,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “These agreements reflect the Department’s continued commitment to ensuring that children with disabilities enjoy equal access to child care services.”
“Given the critical role that dependable child care plays in a parent’s ability to work or go to school, we are proud that this settlement will ease the struggle to find quality child care for families of children with disabilities,” said United States Attorney David C. Weiss for the District of Delaware.
“Parents who rely on child care need to know that their children will receive the care and support they need—particularly when their children have disabilities,” said United States Attorney David L. Anderson for the Northern District of California. “Child care providers need to meet their responsibilities to these kids and comply with the ADA. We appreciate the efforts of the Civil Rights Division working with our office to address these issues in our district.”
The complaint underlying the Lil’ Einstein’s Learning Academy matter alleged that a 16-month old child, who had been enrolled in the program since she was six months old, was disenrolled on the basis of her disability. Upon their daughter’s diagnosis with Type 1 diabetes, the child’s parents requested that Lil’ Einstein’s Learning Academy staff provide routine diabetes care, including supervision of her continuous glucose monitor (CGM) and insulin administration through her insulin pump. The complaint further alleged that Lil’ Einstein’s Learning Academy refused to administer insulin to their daughter through the pump, refused to permit their daughter’s personal, licensed nurse to accompany her at the day care to provide the needed diabetes care, and disenrolled their daughter on the basis of her disability.
Similarly, the complaint underlying the Community First School agreement alleged that the child care center discriminated against a child – then two years-old – and her parents on the basis of her disability. The toddler began attending Community First School before she was diagnosed with Type 1 diabetes. Upon her diagnosis, she was prescribed a CGM that provided electronic blood glucose readings on an iPhone application. The CGM comes with a remote device that picks up the CGM readings and then transmits it to any smartphone connected through an app. Her parents requested that Community First staff keep an iPhone or a small remote transmitter provided by the family near their daughter so that her CGM could transmit readings. If the CGM triggered an alarm signifying a low blood glucose level, the parents asked that a staff member provide their daughter juice. The complaint further alleged that Community First School denied the parents’ requests, and the parents had no choice but to disenroll their daughter.
In each case, the parents had to secure new child care settings for their children, resulting in great stress for both sets of parents, who depended upon the providers to properly care for their children while they worked to support their families.
Title III of the ADA prohibits discrimination on the basis of disability by public accommodations, including child care providers. Under the ADA, child care providers must make reasonable modifications to their policies, practices or procedures when necessary to provide equal access to a child with a disability unless they can demonstrate that such modifications amount to a fundamental alteration to the nature of their services.
Under the agreements, Lil’ Einstein’s Learning Academy agreed to pay $25,000 in compensatory damages to the aggrieved child and her parents and $2,500 in civil penalties, and Community First School agreed to pay $15,000 to the aggrieved child and her parents and $2,500 in civil penalties. Both child care centers also agreed to evaluate each request for reasonable modifications on an individualized basis, using objective evidence and current medical standards, and, where appropriate, to train child care staff members to assist with routine diabetes care tasks, such as monitoring a continuous glucose monitor, administering Glucagon in emergency situations, and administrating insulin by pen, syringe, or pump.
2020 marks the 30th Anniversary of the Americans with Disabilities Act. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. The Justice Department will continue to use its enforcement and technical assistance tools to eliminate unlawful discrimination against individuals with disabilities.
People interested in finding out more about the ADA or these settlement agreements can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov.
Jacksonville Realtor Convicted of Bankruptcy FraudRead the Press Release
Orlando, Florida – A federal jury has found Tanya Firmani (47, Jacksonville) guilty of one count of conspiracy to commit bankruptcy fraud and six counts of bankruptcy fraud. Firmani faces a maximum penalty of five years’ imprisonment on each count. Her sentencing hearing is scheduled for April 21, 2020.
According to testimony and evidence presented at trial, Firmani conspired with others in a foreclosure rescue/bankruptcy fraud scheme. Firmani solicited homeowners whose mortgages were in default and offered to rescue their homes from foreclosure. To prevent the Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac”), the Federal Housing Administration (“FHA”), and multiple financial institutions from lawfully foreclosing on homeowners’ properties, Firmani filed or caused the filing of fraudulent bankruptcy petitions in the homeowners’ names just prior to the scheduled foreclosure sale dates. The fraudulent bankruptcies triggered the Bankruptcy Code’s automatic stay provision, preventing Fannie Mae, Freddie Mac, FHA, and the financial institutions from conducting foreclosure sales and obtaining the titles to the properties. The fraudulent bankruptcy petitions enabled Firmani to collect fees and allowed her co-conspirators to obtain ill-gotten commissions for short-sales causing losses to creditors.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the U.S. Department of Housing and Urban Development – Office of Inspector General. The Office of United States Trustee for the Middle District of Florida provided substantial investigative assistance. The case is being prosecuted by Special Assistant United States Attorney Chris Poor.
Insulation Contracting Firm and Co-Owner Plead Guilty to Antitrust and Fraud ChargesRead the Press Release
Langan Insulation LLC and its co-owner pleaded guilty today in Bridgeport, Connecticut, for their roles in schemes to rig bids in violation of the antitrust laws and engage in criminal fraud on insulation contracts, bringing the total to five convictions in this ongoing investigation, the Department of Justice announced.
According to court documents, from October 2011 until March 2018, Langan Insulation LLC, located in North Haven, Connecticut, and Thomas F. Langan, of East Haven, Connecticut, conspired with other insulation contractors to rig bids and engage in fraud on contracts for installing insulation around pipes and ducts on construction projects at universities, hospitals, and other public and private entities in Connecticut. The conspirators discussed prices and agreed on bids that inflated prices to their customers by approximately 10 percent. In order to conceal their actions, the conspirators perpetrated the bid-rigging and fraud schemes using phones for which the registration masked the identity of the users and an encrypted disappearing messaging app.
“Today’s two guilty pleas, from a company and its senior executive, underscore our ongoing efforts to hold companies and individuals accountable for engaging in bid rigging and fraud,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “We will aggressively pursue and hold accountable those individuals and entities who inflict millions of dollars in harm, particularly on vulnerable institutions, such as taxpayer-funded schools and hospitals, and other businesses.”
“This collusive scheme defrauded hospitals, universities and businesses across New England of millions of dollars,” said U.S. Attorney John H. Durham for the District of Connecticut. “The guilty pleas today demonstrate that the Department of Justice will seek to hold both individuals and companies accountable for rigging bids. I thank the FBI, DCIS, and the Antitrust Division for their ongoing efforts to bring the participants in this conspiracy to justice.”
“Today is another example to show that individuals who engage in fraud schemes of any kind will not be tolerated,” said Special Agent in Charge Brian C. Turner of FBI’s New Haven Field Office. “The FBI, along with DOJ and our law enforcement partners, will remain diligent in combatting fraud and collusion so that justice is served.”
“Bid rigging and other violations of antitrust laws seriously damage the integrity of the U.S. Defense Department's procurement process,” said Special Agent in Charge Leigh-Alistair Barzey of the Department of Defense OIG’s Defense Criminal Investigative Service (DCIS), Northeast Field Office. “The guilty pleas announced today are the direct result of a joint investigative effort and demonstrate the DCIS’ ongoing commitment to work with the USAO-CT and the FBI to investigate and prosecute individuals and companies that engage in criminal conduct that undermines the competitive bidding process.”
The antitrust charge announced today carries a maximum penalty of 10 years in prison and a criminal fine of $1 million for individuals, and a criminal fine of $100 million for corporations. The fraud conspiracy charge carries a maximum penalty of 20 years in prison and a criminal fine of $250,000 for individuals, and a criminal fine of $500,000 for organizations. The fines for the antitrust and fraud conspiracy charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. In addition to their guilty pleas, Langan Insulation LLC and Thomas F. Langan have agreed to pay restitution to the victims.
The ongoing investigation is being conducted by the Antitrust Division’s New York Office, the U.S. Attorney’s Office for the District of Connecticut, the FBI’s New Haven Division, and the Defense Criminal Investigative Service. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s New York Office at 212-335-8000, or visit http://www.justice.gov/atr/contact/newcase.html.
Insulation Contracting Firm and Co-Owner Plead Guilty to Antitrust and Fraud ChargesRead the Press Release
Langan Insulation LLC and its co-owner pleaded guilty today in Bridgeport, Connecticut, for their roles in schemes to rig bids in violation of the antitrust laws and engage in criminal fraud on insulation contracts, bringing the total to five convictions in this ongoing investigation, the Department of Justice announced.
According to court documents, from October 2011 until March 2018, Langan Insulation LLC, located in North Haven, Connecticut, and Thomas F. Langan, of East Haven, Connecticut, conspired with other insulation contractors to rig bids and engage in fraud on contracts for installing insulation around pipes and ducts on construction projects at universities, hospitals, and other public and private entities in Connecticut. The conspirators discussed prices and agreed on bids that inflated prices to their customers by approximately 10 percent. In order to conceal their actions, the conspirators perpetrated the bid-rigging and fraud schemes using phones for which the registration masked the identity of the users and an encrypted disappearing messaging app.
“Today’s two guilty pleas, from a company and its senior executive, underscore our ongoing efforts to hold companies and individuals accountable for engaging in bid rigging and fraud,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “We will aggressively pursue and hold accountable those individuals and entities who inflict millions of dollars in harm, particularly on vulnerable institutions, such as taxpayer-funded schools and hospitals, and other businesses.”
“This collusive scheme defrauded hospitals, universities and businesses across New England of millions of dollars,” said U.S. Attorney John H. Durham for the District of Connecticut. “The guilty pleas today demonstrate that the Department of Justice will seek to hold both individuals and companies accountable for rigging bids. I thank the FBI, DCIS, and the Antitrust Division for their ongoing efforts to bring the participants in this conspiracy to justice.”
“Today is another example to show that individuals who engage in fraud schemes of any kind will not be tolerated,” said Special Agent in Charge Brian C. Turner of FBI’s New Haven Field Office. “The FBI, along with DOJ and our law enforcement partners, will remain diligent in combatting fraud and collusion so that justice is served.”
“Bid rigging and other violations of antitrust laws seriously damage the integrity of the U.S. Defense Department's procurement process,” said Special Agent in Charge Leigh-Alistair Barzey of the Department of Defense OIG’s Defense Criminal Investigative Service (DCIS), Northeast Field Office. “The guilty pleas announced today are the direct result of a joint investigative effort and demonstrate the DCIS’ ongoing commitment to work with the USAO-CT and the FBI to investigate and prosecute individuals and companies that engage in criminal conduct that undermines the competitive bidding process.”
The antitrust charge announced today carries a maximum penalty of 10 years in prison and a criminal fine of $1 million for individuals, and a criminal fine of $100 million for corporations. The fraud conspiracy charge carries a maximum penalty of 20 years in prison and a criminal fine of $250,000 for individuals, and a criminal fine of $500,000 for organizations. The fines for the antitrust and fraud conspiracy charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. In addition to their guilty pleas, Langan Insulation LLC and Thomas F. Langan have agreed to pay restitution to the victims.
The ongoing investigation is being conducted by the Antitrust Division’s New York Office, the U.S. Attorney’s Office for the District of Connecticut, the FBI’s New Haven Division, and the Defense Criminal Investigative Service. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s New York Office at 212-335-8000, or visit http://www.justice.gov/atr/contact/newcase.html.
Income Tax Preparer Pleads Guilty to Preparing and Filing False Tax ReturnsRead the Press Release
FRESNO, Calif. — Chris Donell Smith, 56, of Stockton, pleaded guilty today to aiding and assisting in the preparation of false tax returns, U.S. Attorney McGregor W. Scott announced.
According to court documents, Smith owned and operated New Covenant Tax & Accounting, a tax preparation business in Modesto. Between 2012 and 2015, Smith prepared income tax returns that reported false items and dollar amounts for a number of his clients without their knowledge or consent. He falsified charitable contributions, unreimbursed employee expenses, and capital losses and wage income on some of his clients’ tax returns. For some of these clients, he prepared a correct tax return which he gave the client, but then electronically filed a fraudulent return claiming a higher refund. He directed that the payment of the refund be split, with the amount the client expected going into the client’s own bank account and the additional higher amount going into an account controlled by Smith. According to the plea agreement, Smith defrauded the IRS of approximately $63,000.
This case is the product of an investigation by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Melanie L. Alsworth is prosecuting the case.
Smith is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on May 11. Smith faces a maximum statutory penalty of three years in prison and a $100,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Immigrant Sentenced for Defrauding Hopeful ImmigrantsRead the Press Release
Catholic Diocese employee embezzled fees for immigration assistance
GRAND RAPIDS, MICHIGAN — Monica Karina Mazei, aka Karina Puig, was sentenced today to 33 months’ imprisonment by Chief U.S. District Judge Robert J. Jonker. Mazei had been employed by the Catholic Diocese of Kalamazoo’s Immigration Assistance Program, where she helped clients and their relatives apply for visas, work permits, permanent resident status, citizenship, and other relief. In October 2019, Mazei pled guilty to an indictment charging her with wire fraud. She admitted that on numerous occasions between 2015 and 2019, she collected fees from certain clients and promised to process their petitions. Instead, she embezzled their money, and did not send in their paperwork. Mazei immigrated to the United States from Ecuador herself, and became a naturalized citizen in 1999.
Mazei concealed her scheme from the Diocese by not opening files for the clients she was defrauding. In some cases she deceived clients by requesting blank checks or money orders. She wrote “U.S. Department of Homeland Security” in the payee line of the copies she provided them as proof of payment. She then wrote her own name as payee on the actual instruments, and deposited them in her personal accounts. In other cases she took cash, which she simply kept for herself. In addition to the sentence of imprisonment, Chief Judge Jonker ordered Mazei to pay $58,998 in restitution to her identifiable victims.
“Mazei was given an opportunity to live the American dream,” said U.S. Attorney Andrew Birge, “but she cashed in on the dreams of others to line her own pockets.”
This case was investigated by Homeland Security Investigations (HSI) and the Kalamazoo Department of Public Safety.
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Illinois Man Admits Conspiring to Distribute Cocaine and HeroinRead the Press Release
NEWARK, N.J. – An Illinois man today admitted conspiring to distribute one kilogram or more of heroin and 500 grams or more of cocaine, U.S. Attorney Craig Carpenito announced.
Jesus Henoc Castaneda Soberanis, 25, of Chicago, Illinois, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin and 500 grams or more of cocaine.
According to documents filed in this case and statements made in court:
On June 6, 2019, Soberanis conspired with others to distribute narcotics, agreeing to pay a conspirator approximately $1,000 to drive Soberanis, together with approximately one kilogram of cocaine and approximately two kilograms of heroin, from Illinois to the East Coast. The investigation revealed that Soberanis would have distributed at least one of these kilograms of narcotics in New Jersey, were the narcotics not interdicted by law enforcement.
The count to which Soberanis pleaded guilty carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life imprisonment and a fine of up to $10 million. Sentencing is scheduled for May 20, 2020.
U.S. Attorney Craig Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Ray Donovan in New York, with the investigation leading to today’s guilty plea.
The arrest was the result of an investigation by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area.
The Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the New York City Police Department; the New York State Police; Immigration and Customs Enforcement – Homeland Security Investigations; the U. S. Internal Revenue Service Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; U.S. Secret Service; the U.S. Marshals Service; New York National Guard; the Clarkstown Police Department; U.S. Coast Guard; Port Washington Police Department; and New York State Department of Corrections and Community Supervision.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the U.S. Attorney’s Office’s Organized Crime Drug Enforcement Task Force/Narcotics Unit in Newark.
Defense counsel: Genesis Peduto Esq., North Bergen, New Jersey
Houstonian convicted in scheme linked to Hurricane HarveyRead the Press Release
HOUSTON ‐ A Houston area man has entered a guilty plea to money laundering in connection with his scheme to defraud the Small Business Administration (SBA), announced U.S. Attorney Ryan K. Patrick.
Robert Kaitho, 56, entered his guilty plea today before U.S. District Judge Andrew Hanen.
Kaitho applied for government assistance in reference to property damage sustained in Hurricane Harvey. In that application, he falsely represented to the SBA that he would use the disbursed funds to rehabilitate or replace the affected property.
As a result of his misrepresentations, the SBA disbursed a federally-funded disaster loan to Kaitho for $71,100, all of which was deposited into his personal bank account.
As part of his plea, Kaitho admitted he used the SBA funds to make unauthorized wire transfer payments, in the amounts of $10,000 and $15,000, to a mortgage company. Kaitho also acknowledged he used funds transferred into his account to make a $30,633.00 wire transfer payment to an individual located in Kenya, another unauthorized expenditure.
Judge Hanen accepted the plea today and set sentencing for June 1. At that time, Kaitho faces up to 10 years in federal prison and a $250,000 maximum possible fine. Kaitho was permitted to remain on bond pending that hearing.
SBA - Office of Inspector General (OIG) and the Department of Homeland Security – OIG conducted the investigation. Assistant U.S. Attorneys Michael Day and Charmaine Holder are prosecuting the case.
Havre man sentenced for domestic assault on Fort Belknap ReservationRead the Press Release
GREAT FALLS—A Havre man convicted of domestic assault after breaking his girlfriend’s nose during an argument on the Fort Belknap Indian Reservation was sentenced today to 54 months in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
James John Russell McConnell, 44, pleaded guilty in September to domestic assault by habitual offender.
U.S. District Judge Brian M. Morris presided and ordered the 54-month sentence be served consecutively to a seven month sentence imposed in a revocation after McConnell violated conditions while on supervised release for a previous conviction.
The prosecution said in court records that McConnell, who has three previous convictions for domestic assault, assaulted his girlfriend on June 23, 2018 in Hays by bear-hugging her to where it was painful and hard to breathe. He also verbally threatened her. The victim was treated for a broken nose at the Northern Montana Hospital.
Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by Fort Belknap law enforcement and the FBI.
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Hartford Man Sentenced to Prison for Stealing Federal Law Enforcement Vehicle and EquipmentRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DOMINQUE PERRY, 24, of Hartford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 12 months and one day of imprisonment, followed by three years of supervised release, for stealing a federal law enforcement vehicle and equipment. Judge Chatigny also ordered Perry to serve four months of home confinement while on supervised release.
According to court documents and statements made in court, on January 29, 2019, Perry and another individual stole a 2016 Honda Accord from a residence in Newington. The vehicle was the property of a federal law enforcement agency, and contained fully loaded firearm magazines for multiple weapons, ammunition, handcuffs and other restraints, a ballistic vest and its component parts, and raid jackets. After stealing the vehicle, Perry drove the Accord to a location in Bloomfield where he and his associate removed the vehicle’s tires and rims. Perry and his associate subsequently sold the tires and rims, and advertised the sale of loaded firearm magazines, ammunition, ballistic vest and other items.
The vehicle and its tires and rims have been recovered, but some of the law enforcement equipment that was in the car has not been located. Judge Chatigny ordered Perry to pay $1,560 in restitution for the missing equipment.
Perry was arrested on a federal criminal complaint on February 6, 2019, and was released on bond. He has been detained in state custody on unrelated auto theft charges since August 2019.
On October 18, 2019, Perry pleaded guilty in federal court to one count of theft of government property.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the assistance of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the Newington and Hartford Police Departments. The case is being prosecuted by U.S. Attorney Durham.
Hartford Man Sentenced to 46 Months in Federal Prison for Gun Possession and Cocaine Distribution OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LUIS NIEVES-FELICIANO, 41, of Hartford, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 46 months of imprisonment, followed by three years of supervised release, for drug and firearm offenses.
According to court documents and statements made in court, on May 4, 2019, agents with the Connecticut Department of Revenue Services (“DRS”) arrived at Broad Street Liquors, located at 1949 Broad Street in Hartford, to conduct a routine permit/cigarette inspection. When they entered, Nieves-Feliciano, an employee of the store, was standing behind the counter. Nieves-Feliciano immediately concealed items, struggled with DRS agents, and eventually fled the store.
The DRS agents then contacted Hartford Police and a court-authorized search of the store revealed a loaded Kel-Tec, Model P11, 9mm semiautomatic pistol, approximately 45 grams of cocaine packaged for distribution and a quantity of marijuana packaged for distribution, all of which was located on or behind the store’s counter. A second 9mm pistol, a box of ammunition, approximately 112 grams of cocaine, approximately $13,000 in cash, and personal items and documents belonging to Nieves-Feliciano, were located in the basement of the store.
The search of the store also revealed several cigarette packs that had fraudulent tax stamps.
Nieves-Feliciano’s criminal history includes state felony convictions for narcotics, firearm, assault and robbery offenses.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Nieves-Feliciano has been detained since May 15, 2019, when he was arrested on a federal criminal complaint. On October 21, 2019, he pleaded guilty to one count of possession with intent to distribute cocaine, and one count of possession of firearms by a previously convicted felon.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Gang Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Connecticut Department of Revenue Services provided valuable assistance to the investigation. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.