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12 December 2019
Justice Department Files Antitrust Case and Simultaneous Settlement Requiring Elimination of Anticompetitive College Recruiting RestraintsRead the Press Release
The Department of Justice’s Antitrust Division today filed a civil lawsuit against the National Association for College Admission Counseling (NACAC) alleging that NACAC established and enforced illegal restraints on the ways that colleges compete in the recruiting of students. The Antitrust Division simultaneously filed a proposed consent decree with NACAC. Under the decree, NACAC is required to remove three anticompetitive rules from its Code of Ethics and Professional Practices (CEPP), which broadly regulates how its college members conduct their admissions process. In advance of today’s court filings, and in response to the Antitrust Division’s investigation, NACAC members voted to remove the rules at their Annual Meeting in September.
“While trade associations and standards-setting organizations can and often do promote rules and standards that benefit the market as a whole, they cannot do so at the cost of competition,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s settlement is a victory for all college applicants and students across the United States who will benefit from vigorous competition among colleges for their enrollment.”
Under its proposed consent decree with the Justice Department, NACAC has agreed to remove rules regarding recruitment of (1) transfer students from other schools; (2) prospective incoming freshmen after May 1; and (3) prospective Early Decision applicants. NACAC is further restrained from establishing or enforcing any similar rule in the future, and has agreed to increase its antitrust compliance training with employees and members. If approved by the court, the consent decree will resolve the Antitrust Division’s competitive concerns.
NACAC is headquartered in Arlington, Virginia. NACAC is the leading trade association related to the college admissions process. Its members include primarily non-profit colleges and universities and their admissions staff, as well as high schools and their counselors.
As required by the Tunney Act, the proposed consent decree, along with the Department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Aaron Hoag, Chief, Technology and Financial Services Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 7100, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Jury finds Mission Man Guilty of Felon in Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that Luke Joseph Burning Breast, age 36, of Mission, South Dakota, was found guilty of Felon in Possession of a Firearm as a result of a federal jury trial in Pierre, South Dakota. The verdict was returned on December 10, 2019.
The charge carries a maximum sentence of up to 10 years in prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Burning Breast was indicted by a federal grand jury on August 13, 2019. In 2008, Burning Breast was convicted in Federal court of Drug User in Possession of a Firearm, a felony. On April 9, 2019, in Rosebud, South Dakota, Burning Breast was at a residence when an altercation ensued between Burning Breast and his domestic partner. Law enforcement was contacted and responded to the residence. During questioning, the officers noted a rifle magazine on the table and Burning Breast requested his rifle be retrieved from outside. The arresting officers knew that Burning Breast had a prior felony conviction and asked him about the firearm and conviction. Burning Breast erroneously claimed he was no longer a felon, though the investigation revealed his conviction remained valid.
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 local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
A sentencing date has not been set. Burning Breast was remanded to the custody of the U.S. Marshals Service.
Jury Convicts Jefferson City Man of False Information in Two Attempts to Purchase FirearmsRead the Press Release
JEFFERSON CITY, Mo. – A Jefferson City, Missouri, man has been convicted by a federal jury of providing false information in two unsuccessful attempts to purchase firearms.
Joshua Michael Lehman, 35, was found guilty on Monday, Dec. 9, of two counts of making false statements in a federal record provided to a licensed firearms dealer.
Lehman attempted to purchase a Ruger 9mm pistol at Bob’s Guns on Dec. 29, 2017, and attempted to purchase a Smith & Wesson 9mm handgun at Dunham’s Sports on Feb. 15, 2018. In each instance, Lehman claimed, in a federal firearms transaction record, that he had not been adjudicated to be mentally defective and committed to a mental institution, which he knew was false.
Both purchases were denied by the National Instant Criminal Background Check System (NICS) because Lehman had been civilly committed as mentally defective.
On March 20, 2018, Lehman’s mother (through an attorney) contacted the Cole County Sheriff’s Department because she believed her son was a danger to others and had been attempting to purchase a firearm.
Following the presentation of evidence, the jury in the U.S. District Court in Jefferson City, Mo., deliberated for approximately 40 minutes before returning the guilty verdicts to U.S. District Judge Stephen R. Bough, ending a one-day trial.
Under federal statutes, Lehman is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Aaron M. Maness. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cole County, Mo., Sheriff’s Department.
Project Guardian
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.Jury Convicts Former Fresno IRS Employee of Wire Fraud, Aggravated Identity Theft, and Tax FraudRead the Press Release
FRESNO, Calif. — On Thursday, a federal jury convicted Marcela Heredia, 46, of Riverside, of seven counts of wire fraud, four counts of aggravated identity theft, and one count of making a false tax return, U.S. Attorney McGregor W. Scott announced.
According to court documents and evidence introduced at trial, Heredia worked at the Fresno Economic Opportunities Commission’s Transitional Living Center, which houses at-risk youth, until 2014. Heredia also worked at the IRS as a Tax Examiner between 2008 and 2014. While working at the Transitional Living Center, Heredia stole residents’ personal identifying information and filed numerous tax returns that included false wage and withholding information, false educational expenses, and other false entries. Heredia directed the refunds for those returns to her personal bank account, spending the money on various personal expenses. Heredia failed to report any of the refund money she directed into her account on her 2011 tax return.
“Heredia misused her position of trust as a Youth Care Specialist to feed her greed by stealing the identities of the young homeless adults she cared for and using those identities to file fraudulent tax returns,” said Kareem Carter, Special Agent in Charge of the Oakland Field Office, IRS-CI. “Heredia then secured the fraudulent refunds and deposited them into her own bank account for her personal use. The IRS remains committed to the pursuit of identity theft and, together with our partners at the U.S. Attorney’s Office and Tax Inspector General for Tax Administration, we will hold those who engage in similar conduct accountable.”
This case is the product of an investigation by the U.S. Department of the Treasury Inspector General for Tax Administration and IRS Criminal Investigation. Assistant U.S. Attorneys Laura D. Withers and Vincente A. Tennerelli are prosecuting this case.
Heredia is scheduled to be sentenced on March 27, 2020. She faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for wire fraud, a mandatory minimum of two years in prison to be served consecutive to any other sentence for aggravated identity theft, and up to three years in prison and a $250,000 fine for making a false tax return. 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.
Jackson Man Sentenced for Bank Fraud and Mail Fraud ConspiracyRead the Press Release
Jackson, Miss. –Clinton Moses, Jr., 51, of Jackson, was sentenced today by Senior U.S. District Judge Tom S. Lee to serve 6 months in prison and 6 months of home confinement for his role in a conspiracy to commit bank and mail fraud, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans. Moses was also ordered to pay restitution in the amount of $30,000.
Moses conspired with others to apply for fraudulent automobile loans at Magnolia Federal Credit Union in Hinds County, Mississippi. The conspiracy spanned from early March 2017 through October 2018. The fraudulent loan applications contained false information to include computer-generated numbers in lieu of their legitimate social security numbers and places of employment. Magnolia Federal Credit Union relied on the information provided in the automobile loan applications and processed loans in each of the defendant’s names.
The false representations made caused Magnolia Federal Credit Union to mail checks in amounts from $25,000 to $55,000 to what was later determined to fictitious automobile dealership. The defendants never intended to purchase or take possession of the vehicles that were referenced in the fraudulent loans.
The case was investigated by Immigration and Customs Enforcement’s Homeland Security Investigations and the United States Secret Service. It was prosecuted by Assistant United States Attorney Erin Chalk.
Jackson Man Pleads Guilty to Illegal Possession of Firearm under Project EJECTRead the Press Release
Jackson, Miss. – Jimmy Lee Thompson, 27, of Jackson, pled guilty today before Chief U.S. District Judge Daniel P. Jordan to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Thompson was previously convicted of felonious house burglary in Hinds County and was sentenced to serve ten years in the custody of Mississippi Department of Corrections with three of those years suspended. On June 30, 2018, Thompson was found in possession of a firearm during a traffic stop in Jackson, Mississippi.
Thompson will be sentenced by Chief Judge Jordan on March 13, 2020 at 9:00 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Jackson Police Department investigated the case. The case is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions 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.
Jackson Man Gets 18 Years in Federal Prison under Project EJECT for Illegally Possessing FirearmsRead the Press Release
Jackson, Miss. –Otha Ray Flowers, 37, of Jackson, was sentenced yesterday by U.S. District Court Judge Henry T. Wingate to 10 years in federal prison, followed by three years of supervised release, for being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation.
The 10 year sentence will be served consecutive to the 8 year sentence Flowers received on December 3, 2019, based on a separate conviction for possession of a firearm by a convicted felon. Flowers will serve a total of 18 years in federal prison based on his two most recent convictions.
A jury convicted Flowers at the conclusion of a trial on September 18, 2019, for being a convicted felon in possession of a firearm during his arrest by the FBI on a federal warrant. On February 13, 2019, an FBI Special Agent and Task Force Officer encountered Flowers exiting his sister’s residence. When the agents informed Flowers that they were from the FBI and that he was under arrest, Flowers resisted arrest and tossed a loaded firearm that had been in his coat pocket back into his sister’s apartment. Flowers continued to resist, but he was finally subdued. The firearm was then recovered from the apartment. Flowers had been previously convicted in St. Bernard Parish, Louisiana for attempted armed robbery; in Hinds County, Mississippi for possession of a firearm by a convicted felon; and in Guadalupe County, Texas for possession of a firearm by a convicted felon.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted and tried by Assistant United States Attorneys Dave Fulcher and Chet Kirkham.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is 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. Attorney General Jeff Sessions 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.
Indianapolis Drug Kingpin Sentenced to Life in Federal PrisonRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that Richard Bernard Grundy, III, 30, Indianapolis, was sentenced today in federal court, by U.S. District Chief Judge Jane Magnus-Stinson, to life in federal prison. Grundy was convicted of drug-trafficking and money laundering following a three-week jury trial in August of 2019.
"Indianapolis is a safer community today with Grundy and his associates off the streets," said Minkler. "This sentence sends a clear message that if you choose to traffic drugs into our neighborhoods and endanger our citizens, we will find you, and you will be prosecuted to the full extent of the law."
Grundy was the leader of a drug-trafficking organization that distributed over 400 pounds of methamphetamine, as well as large amounts of heroin, cocaine, and marijuana in Indianapolis from August 2016 through November 17, 2017. Grundy was convicted of engaging in a continuing criminal enterprise, conspiracy to distribute controlled substances, and other drug-trafficking and money laundering offenses.
Ezell Neville, 41, Undrae Moseby, 30, Derek Atwater, 33, and James Beasley, 39, also from Indianapolis, were convicted of conspiracy to distribute controlled substances and other drug-trafficking offenses. Neville served as a principal distributor of methamphetamine for Grundy. Moseby transported drug proceeds from Indianapolis to Phoenix, Arizona for Grundy and returned to Indianapolis with methamphetamine. Atwater and Beasley were mid-level methamphetamine distributors for Grundy’s organization.
Neville, Atwater, and Beasley were sentenced to 360 months, 216 months, and 235 months in federal prison, respectively. Moseby is awaiting sentencing. The statuses of the remaining codefendants are listed below.
David C. Carroll, sentenced on November 5, 2019, to 96 months
Michael Hyatte, sentenced on December 18, 2018, to 12 months and one day
Lance Hatcher, Jr., awaiting sentencing
Nathaniel Dixson, sentenced on November 27, 2018, to 120 months
Conway Jefferson, dismissed on November 17, 2017
Robert Lisenby, Jr., sentenced on October 24, 2018, to 276 months
Torin A. Harris, sentenced on November 26, 2018 to 120 months
John E. Bell, sentenced on November 14, 2018, to 180 months
Shemilah D. Crowe, sentenced on May 2, 2019, to 60 months
Gilberto Vizcarra-Milan, sentenced on December 5, 2019, to 300 months
Mario Eduado Villasenor, sentenced on October 30, 2019, to 48 months
Christopher D. Bradford, pending trial
Emilio Mitchell, II, sentenced on November 20, 2019, to 120 months
Thomas Bullock, sentenced on April 11, 2019, to 120 months
Mark T. Williams, sentenced on December 11, 2019, to 240 months
Isiah T. Finch, sentenced on September 25, 2019 to 36 months
Dion G. Madison, sentenced on April 10, 2019, to 97 months
Frank S. Early, sentenced on June 24, 2019, to 46 months
Emilio Mitchell, Jr., sentenced on May 14, 2019, to 57 months
Daona Le’Ann Gholston, sentenced on April 9, 2019, to 30 months
The lead investigative agencies were the Federal Bureau of Investigation and the Indianapolis Metropolitan Police Department. Other agencies that assisted in the investigation included the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Fishers Police Department, Marion County Sheriff’s Department, Indiana State Police, and Zionsville Police Department.
"Mr. Grundy was under the mistaken impression he and his crew could run their criminal enterprise and flaunt their illegal activities in the face of the law without fear of consequence. Today’s sentence sends a strong and clear message to him and others – illegal drug trafficking, witness intimidation and violence will not be tolerated in Indianapolis, or anywhere in Indiana," said Special Agent in Charge Grant Mendenhall, FBI Indianapolis. "The FBI’s partnerships in this case were vital to a successful investigation, and the willingness of the U.S. Attorney’s Office to aggressively prosecute this group was important to putting others involved in similar criminal activities on notice that there is zero tolerance for their unlawful actions."
"Today’s sentencing is the culmination of years of cooperative efforts among local and federal law enforcement partners in Marion County," said IMPD Chief Bryan Roach. "Profiting from crime and violence in our community will not be tolerated, and this case should send a message to those in our city with similar violent criminal enterprises that we will hold them accountable."
"This sentence stands as a warning to others who use firearms and physical threats against the Indianapolis community," stated Jonathan McPherson, Special Agent in Charge of ATF’s Columbus Field Division. "The law enforcement community in central Indiana, at the local, state, and federal levels, will work long and hard to ensure that criminals are held responsible for their illegal and violent acts and that every victim receives the justice they deserve."
According to Assistant United States Attorneys Bradley A. Blackington and Lindsay E. Karwoski, who prosecuted this case for the government, Grundy will serve five years supervised release following his prison sentence, and he was fined $2,000.00.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to target, investigate, and prosecute more violent criminal organizations engaged in drug trafficking, money laundering and the use of firearms to further a drug trafficking crime. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.1.
Incarcerated Bridgeport Man Charged with Attempting to Murder Federal Grand Jury WitnessRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that, on December 4, 2019, a federal grand jury in Bridgeport returned an indictment charging VAUGHN THOMAS, also known as “Fettiboy LV,” 20, of Bridgeport, with retaliating against a federal grand jury witness.
As alleged in court documents and statements made in court, between September and November 2019, while he was incarcerated in state custody, Thomas solicited other inmates to murder a federal grand jury witness. He also wrote letters to non-incarcerated individuals instructing them to murder the witness, and made phone calls to make sure his instructions were followed.
The indictment charges Thomas with one count of obstructing justice by attempting to kill a witness, which carries a maximum term of imprisonment of 20 years, and one count of obstructing justice by threatening to engage in conduct intended to cause bodily injury to a witness, which carries a maximum term of imprisonment of 20 years.
Thomas has been in state custody since May 15, 2019. He appeared yesterday before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and entered a plea of not guilty to the charges.
U.S. Attorney Durham stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Connecticut State Police and Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Imposter nurse pleads guilty to wire fraud, health care fraud and identity theftRead the Press Release
Greeneville, Tenn. – On December 12, 2019, Misty Dawn Bacon, 44, of Morristown, entered a guilty plea to one count of wire fraud, one count of health care fraud, and one count of identity theft in the United States District Court for the Eastern District of Tennessee at Greeneville. Sentencing has been set for April 3, 2020, at 1:30 p.m., in United States District Court in Greeneville.
Bacon faces up to 45 years in Federal prison, fines of up to $750,000, and restitution that could exceed $750,000.
As part of the written plea agreement, Bacon, a convicted felon, admitted to providing fraudulent information on job applications, with the intent to deceive prospective employers by using the registered nurse license numbers of others to gain employment. Bacon posed as a registered nurse, despite having neither a nursing degree nor nursing license from the Tennessee Department of Health and no nursing experience. Through this fraudulent scheme, Bacon was hired by at least eight health care providers between September 2012 and November 2018. Over the six-year period, Bacon worked in a variety of medical settings, including nursing homes, rehabilitation and assisted living facilities, a doctor’s office, and home health agencies.
While posing as a nurse, Bacon had access and rendered medical care to numerous patients, dispensing medications, obtaining invasive access to patient’s bodies, and gaining access to patients’ sensitive and private medical information.
Additionally, as a purported registered nurse, Bacon made numerous false entries in patients’ medical records and submitted false claims to public and private health care benefit programs. Two of her employers, voluntarily repaid health care benefit programs a combined sum of over $500,000 for claims submitted upon learning of Bacon’s imposter status. As part of her written plea agreement, Bacon agreed to waive her right to grand jury indictment and proceed by criminal information, which includes the aforementioned charges.
“This defendant created a substantial danger to public health through her lengthy criminal scheme. Anyone who fraudulently poses as a licensed professional will be vigorously prosecuted by this office and an appropriate punishment will be sought,” added United States Attorney J. Douglas Overbey. “Our office will bring the full measure of the law against those who attempt to take this sort of dangerous and unlawful advantage of persons needing appropriate medical treatment from duly licensed health care professionals.”
“Posing as a medical professional and putting the lives of innocent patients at risk is not acceptable,” said TBI Director David Rausch. “Our Medicaid Fraud Control Division remains committed to working with our federal partners to ensure healthcare fraud and identity theft cases like this one are addressed and investigated thoroughly.”
The criminal information is the result of an ongoing investigation by the Tennessee Bureau of Investigation, the Tennessee Department of Health, and the Jefferson City Police Department.
Mac D. Heavener, III, Assistant United States Attorney, represented the United States.
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Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that EDWIN DAVID PONCE-MATAMOROS, age 34, a citizen of Honduras, plead guilty on December 10, 2019 in a one-count indictment charging him with illegal reentry of a removed alien, in violation of 8 U.S.C. ' 1326(a) and (b)(1).
According to documents signed by the defendant and filed in open court, federal agents found PONCE-MATAMOROS, who did not have permission to be in the United States, in Jefferson Parish on or about October 10, 2019. PONCE-MATAMOROS was previously removed from the United States on March 17, 2017.
PONCE-MATAMOROS faces a maximum term of imprisonment of ten years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment. Sentencing is scheduled for February 4, 2020.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney David Howard Sinkman is in charge of the prosecution.
Honduran Man Pleads Guilty to Being an Illegal Alien in Possession of a Firearm, Illegal Re-entry and Possession with Intent to Distribute CocaineRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that JOSE HUMBERTO DELSIB-MARTINEZ (hereinafter “Delsib), age 40, a native of Honduras, pleaded guilty on December 5, 2019 to a three-count superseding bill of information, which charged him with being an illegal alien in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(5)(A), illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a), and possession with the intent to distribute a quantity of cocaine hydrochloride, in violation of Title 21, United States Code, Section 841(a)(1).
According to documents filed in open court and signed by DELSIB, members of the Kenner Police Department Narcotics Section were conducting surveillance in connection with a drug trafficking complaint within the city of Kenner in the Eastern District of Louisiana. During surveillance, detectives observed DELSIB, the target of the investigation, travelling in his vehicle eastbound in the 600 block of 27th Street. Since the vehicle was observed to have illegally tinted windows, a traffic stop was conducted. DELSIB was advised of the ongoing narcotics investigation. The Kenner Police Detective spoke Spanish and was able to converse with DELSIB in that language. Thereafter DELSIB waived his rights and provided consent to search his vehicle. During the search, detectives located a clear plastic bag containing fourteen individually wrapped baggies of a white powdery substance wedged between the driver’s side floorboard and center console. A sample of the white powdery substance chemically field tested positive for the presence of cocaine, 8.1 grams. The powder- totaling 8.1 grams, was later tested in a laboratory and found to be cocaine hydrochloride.
DELSIB agreed to cooperate with the investigation and subsequently provided consent to search his residence, located at 2755 Albany St., Apartment D, Kenner, La. During a search of DELSIB’S bedroom, he directed detectives to a silver 9mm handgun that was later identified as a Lorcin Engineering Model L-9 bearing serial number L-121517, which had been shipped in interstate commerce, a large clear plastic bag containing a white powdery substance, and a black digital scale. All items were located within a large wooden floor speaker box. A sample of that white powdery substance chemically field tested positive for the presence of cocaine, 18 grams. The substance was later tested in a laboratory and found to be cocaine hydrochloride.
DELSIB provided detectives with a voluntary statement advising that all seized items belonged solely to him and he sold cocaine as a way to make extra money. He said that he used the black digital scale to weigh narcotics prior to sale and he used his vehicle as an aid in transport of the illegal narcotics.
DELSIB faces a maximum term of imprisonment of 10 years, a fine of $250,000, and three years of supervised release on all counts.
U.S. Attorney Strasser praised the work of the United States Immigration and Customs Enforcement, the Kenner Police Department, and the Jefferson Parish District Attorney’s Office in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
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Homestead Man Pleads Guilty to Distributing Heroin He Obtained from SCO Gang MemberRead the Press Release
PITTSBURGH, PA- A resident of Homestead, Pennsylvania, pleaded guilty in federal court to a charge of drug trafficking, United States Attorney Scott W. Brady announced today.
Thomas Dwyer, 42, pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the Court was advised that that the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking occurring in and around the Braddock section of Pittsburgh. In January of 2019, investigators obtained authorization to conduct a federal wire investigation, which continued through May of 2019. Dwyer admitted that he obtained heroin, which he then distributed, from James Wells. Wells, a SCO gang member, has already pleaded guilty in this case, admitting by way of his guilty plea that he was a heroin trafficker in and around the Braddock area.
Judge Schwab scheduled sentencing for May 11, 2020 at 10:00 AM. As to Dwyer, the law provides for a total sentence of not more than 20 years in prison, a fine not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Dwyer remains on bond pending the sentencing hearing.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania Attorney General’s Office Bureau of Narcotics, and the Pittsburgh Bureau of Police. Other assisting agencies include the Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation.
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.
Holiday travelers reminded not to attempt to illegally carry weapons aboard flightsRead the Press Release
AUGUSTA, GA: Air travelers planning to fly from Augusta, Savannah or Brunswick could receive an unwelcome reminder if they attempt to illegally carry a firearm on board.
As announced Thursday, Dec. 12, at Augusta Regional Airport, a new citation system from the FBI eliminates the free pass some travelers received when attempting to bring a firearm into the secured area of an airport, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The program applies to each commercial airport in the Southern District, including the Augusta Regional Airport, Savannah/Hilton Head International Airport, and the Brunswick Golden Isles Airport.
Previously, airport patrons with concealed carry permits who brought a firearm into an airport’s secured area have been allowed to exit the airport and return without the weapon. Now, after police serving the airport file a report of the incident, those patrons also will receive a citation from the FBI charging them with a federal misdemeanor and compelling them to appear in court, Christine said. The citation carries a penalty of $300 plus court fees.
The policy doesn’t change for patrons without permits who bring a firearm into the airport’s secured area; those individuals will be arrested and charged by local police with carrying a concealed weapon. In all of those cases, the Transportation Security Administration also assesses substantial civil penalties.
“Legal possession of firearms in accordance with the law will be defended by the U.S. Attorney’s Office,” Christine said. “We hope the announcement of this tougher policy will remind honest travelers during the busy holiday season, and beyond, that federal law prohibits travelers from bringing a firearm into any airport’s secured area.”
“The FBI investigates crimes that occur aboard aircraft and that is why we take this matter very seriously,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The task is simple: Before traveling, check your bags before leaving home so you can arrive safely and on time for your holiday plans.”
Marshal Ramone Lamkin, whose office is responsible for policing the Augusta airport, stated, “We want everyone to have a safe and enjoyable holiday season. I encourage all gun owners who intend to travel through our airport to vigorously inspect their bags prior to arrival, as many gun owners forget they are carrying firearms in their personal bags. This can lead to serious, but avoidable, legal consequences.”
Glynn County Police Chief John Powell, whose agency provides law enforcement at the Brunswick/Golden Isles Airport, said, “We appreciate the U.S. Attorney’s proactive approach to working with federal, state and local agencies to protect the rights of legal gun owners while ensuring the safety of air travelers.”
Governor of Tipton County Gangster Disciples Sentenced to 10 Years for RICO ConspiracyRead the Press Release
Memphis, TN – Robert Elliott Jones, 39, a/k/a/ "Lil Rob," a/k/a/ "Mac Rob" has been sentenced to 120 months in federal prison on conspiracy to participate in a racketeering enterprise. U.S. Attorney D. Michael Dunavant announced the guilty plea today.
According to the superseding indictment, the Gangster Disciples is a highly-organized criminal street gang with nationwide reach. In addition to Tennessee, the gang reportedly operates in more than 35 states. The Gangster Disciples were organized into different positions, including board members, and governor-of-governors who each controlled geographic regions; governors, assistant governors, chief enforcers and chief of security for each state or regions within the state where the Gangster Disciples were active; and coordinators and leaders within each local group.
During the change of plea hearing on July 25, 2019, Jones admitted that he was the Governor of Section 4, which covers Tipton County, TN, including Covington. The superseding indictment that Jones entered a guilty plea to indicates that as Governor over a region he was responsible for supervising the criminal activities of the members and associates of the Gangster Disciples enterprise; issuing orders to kill rival gang members and subordinate gang members who he believed had violated Gangster Disciple rules of conduct; and presiding over Gangster Disciple meetings where criminal activity was discussed, proceeds were collected and beatings of fellow gang members were administered.
Jones was among a total of 16 leaders and members of the Gangster Disciples criminal street gang originally indicted in 2016 in "Operation .38 Special" for federal racketeering offenses, including conspiracy to commit attempted murders; robberies; assaults; distribution of large quantities of heroin; cocaine and marijuana; firearms trafficking; kidnappings; intimidation of witnesses and victims; extortion; obstruction of justice; and other offenses in furtherance of the Gangster Disciples enterprise and to raise funds for the gang.
The superseding indictment further alleged that Jones declared Covington, TN as "GD Land" and issued a green light to a subordinate gang member to kill rival gang members in Covington, TN.; he issued an order to kill a subordinate gang member whom the Gangster Disciples believed had cooperated with law enforcement; and sent a photograph of the Treasurer of Section Four who stole $2300 from the Regional Enforcer for the State of Tennessee who was "looking for all money stealers".
On December 11, 2019, U.S. District Court Judge John T. Fowlkes, Jr., sentenced Jones to 120 months in federal prison followed by 3 years of supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said: "Despite Lil Rob’s declaration, Covington is not and will not be ‘GD Land.’ We are fighting to reclaim our cities, towns, and neighborhoods from the gangs, and are effectively dismantling their leadership and influence. Lil Rob will now serve big time for his violence and racketeering that has terrorized Tipton County, and the citizens are safer for it."
This prosecution was brought as part of the Justice Department’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations, and to diminish the violence and other criminal activity associated with the drug trade. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, money laundering, and violent organizations.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Tennessee Bureau of Investigations, Jackson Police Department Gang Enforcement Team, Memphis Police Department, Shelby County Sheriff’s Office, 28th District West Tennessee Drug Task Force, 26th, 25th, and 30th Judicial District Attorney’s General Offices, Sheriff’s Offices for Tipton, DeSoto, Madison and Fayette Counties, Police Departments of Bartlett, Germantown and Columbia, TN.
Assistant U.S. Attorneys Beth C. Boswell and Annie Christoff of the Western District of Tennessee and Trial Attorney Shauna Hale of the Criminal Division Organized Crime and Gang Section prosecuted this case on behalf of the government.
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Georgia woman sentenced for stealing Social Security benefitsRead the Press Release
ATLANTA - Linda A. Nickolson has been sentenced for stealing over $150,000 in Social Security disability benefits that were intended for her deceased husband.
“The money this defendant stole was intended for disabled people who cannot work,” said U.S. Attorney Byung J. “BJay” Pak. “Nickolson was able-bodied but chose not to work, and instead supported herself by stealing from the government. Social Security benefit theft is not a victimless crime; it harms everyone who has paid into the Social Security system.”
“This sentence is a warning to those who may conceal a death from Social Security and continue to use those benefits. This is a Federal crime, one that we will vigorously pursue on behalf of all taxpayers,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I want to thank the U.S. Attorney’s Office for bringing this individual to justice and recovering these funds for Social Security.”
According to U.S. Attorney Pak, the charges and other information presented in court: Nickolson’s husband died in October 2009. Rather than report his death to the Social Security Administration (“SSA”), she continued to receive his monthly Social Security disability benefits and spent the money on herself. Her family members repeatedly told her that she needed to notify the SSA that her husband had died and that she could go to jail if she spent the benefit monies. Nickolson chose to ignore this advice. When she was finally confronted by the SSA, she lied and claimed that she thought she was entitled to receive her husband's disability benefits because she was his next of kin. In total, Nickolson received $159,243 in Social Security money that she was not entitled to receive.
Linda A. Nickolson, 57, of Douglasville, Georgia, has been sentenced to one year and one day in prison to be followed by two years of supervised release, ordered to pay a special assessment of $100, and pay restitution of $159,243. Nickolson was convicted on these charges on September 4, 2019, after she pleaded guilty.
The Social Security Administration - Office of the Inspector General investigated this case.
Special Assistant U.S. Attorney Diane C. Schulman prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Four Defendants Headed to Prison in Project Safe Childhood CasesRead the Press Release
As part of the Project Safe Childhood initiative, four men pleaded guilty or were sentenced this week in U.S. District Court, announced U.S. Attorney Trent Shores.
The initiative combats the growing epidemic of child sexual exploitation and abuse and was launched in May 2006 by the Department of Justice.
“The Project Safe Childhood initiative unites law enforcement and U.S. Attorney’s Offices in common cause- to pursue justice for child victims,” said U.S. Attorney Trent Shores. “Whether coercion and enticement of a minor, production or possession of child pornography, or failure to register as a sex offender, we will work doggedly to hold accountable these predatory criminals.”
Brian Douglas Cook, 29, of Claremore, was sentenced Dec. 12, 2019, for possession of child pornography. U.S. District Judge Claire V. Eagan sentenced Cook to 24 months in federal prison followed by five years of supervised release. Judge Eagan further ordered Cook to pay $9,000 in restitution and $5,100 in special monetary assessments. Cook pleaded guilty on July 21, 2019. In his written plea agreement, he admitted that he possessed more than 600 images of child pornography at his residence in Claremore. He further stated that he accessed the images knowing the images involved minors, some under 12-years-old, engaging in sexually explicit conduct. FBI conducted the investigation. Assistant U.S. Attorney Shannon Cozzoni prosecuted the case.
Casey Adam Parker, 39, of Afton, pleaded guilty Dec. 11, 2019, to attempted receipt of child pornography. On July 2, 2019, Parker used a social media app to engage with an individual he believed to be a minor. In actuality, he was speaking to a law enforcement officer. Parker knowingly attempted to persuade the minor to engage in sexual activity and to send him sexually explicit pictures. Parker was arrested July 2, as part of Operation Independence Day, a month-long operation led by the FBI to apprehend child predators and recover victims of child exploitation and sex trafficking. U.S. District Judge Claire V. Eagan scheduled sentencing for March 12, 2020. The Tulsa Police Department and FBI conducted the investigation. Assistant U.S. Attorney Richard M. Cella is prosecuting the case.
Kacey J. Hamilton, 28, of Tulsa, aka Brandon Bickford, pleaded guilty Dec. 11, 2019, to failure to register as a sex offender. Hamilton resided in Oklahoma since August 2018, and knowingly failed to register and update his registration as a sex offender. U.S. District Judge Gregory K. Frizzell scheduled sentencing for March 10, 2020. The Tulsa Police Department and U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Victor A.S. Régal is prosecuting the case.
Bryan Michael Spidell, 30, of Phoenix, Arizona, pleaded guilty Dec. 9, 2019, to failure to register as a sex offender. Spidell entered and resided in Indian Country, specifically Cherokee Heights, and knowingly failed to register as a sex offender. U.S. District Judge Claire V. Eagan scheduled sentencing for March. 10, 2020. The Cherokee Nation Marshal Service, FBI and U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Scott Proctor is prosecuting the case.
Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.
Fort Thompson Man Charged with AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Domestic Assault by an Habitual Offender.
Charles Grey Owl, a/k/a Raymond Keith Grey Owl, age 49, was indicted on December 10, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 11, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on July 30, 2019, Grey Owl unlawfully committed domestic assault upon his intimate partner, when at the time he had at least two separate prior final convictions for domestic assault. The Indictment further alleges that Grey Owl committed the assault with a dangerous weapon, that is shod feet, with the intent to do bodily harm.
The charges are merely accusations and Grey Owl is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Grey Owl was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Former West Virginia Correctional Officer Sentenced to Federal Prison for Drug DistributionRead the Press Release
CHARLESTON, W.Va. – A former West Virginia correctional officer, John Edward Roach II, was sentenced to federal prison today for a drug crime, announced United States Attorney Mike Stuart. John Roach, 47, of St. Albans, was sentenced to 46 months in prison for possession with intent to distribute methamphetamine.
“A disgraceful breach of public trust,” said United States Attorney Mike Stuart. “As a long-time correctional officer, Roach knew firsthand the dangers drugs pose in the prisons and ignored them. Those who violate the public’s trust will be held accountable. If I’ve said it once, I’ve said it a million times, there’s no such thing as a little bit of public corruption.”
In early April 2019, an inmate at the South Central Regional Jail paid Roach $2,000 to smuggle contraband into the jail. Law enforcement then arranged a sting operation. On April 11, 2019, Roach met with an undercover agent and received a $2,000 payment and four ounces of methamphetamine. Roach was quickly arrested before he could transport the methamphetamine to the jail.
The Drug Enforcement Administration, the Kanawha County Sheriff’s Department, the Putnam County Sheriff’s Department, the St. Albans Police Department and the Boone County Sheriff’s Department conducted the investigation. United States District Court Judge Joseph Goodwin imposed the sentence. Former Assistant United States Attorney Drew Inman and Assistant United States Attorney Kathleen Robeson handled the prosecution.
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Former West Covina Man Charged with Selling Bogus Memorabilia Containing Phony Autographs of Sports Stars, CelebritiesRead the Press Release
SANTA ANA, California – A former Los Angeles County resident now living in Mexico faces federal criminal charges alleging he sold millions of dollars of memorabilia that contained the forged signatures of sports stars, musicians, actors, and other celebrities.
Anthony J. Tremayne, 51, formerly of West Covina but who now lives in Tijuana, Mexico, is charged in a 19-count federal grand jury indictment unsealed today.
Tremayne, who was arrested on a warrant at the San Ysidro border crossing, and made a court appearance today in United States District Court in San Diego.
According to the indictment, beginning in 2010 and continuing until this month, Tremayne operated businesses – including Tremayne Enterprises and Timeless Treasures – that sold memorabilia that contained the forged signatures of celebrities and sports stars. Tremayne allegedly hired and paid other people to forge the signatures. The phony goods were sold on the Internet and were shipped via U.S. mail, FedEx, or other private or commercial interstate carriers, according to the indictment. Tremayne allegedly held out that the forged signatures were real.
For example, in November 2013, Tremayne allegedly met with a buyer in Ladera Ranch. During that meeting, he allegedly sold for $100,000 approximately 100 memorabilia items with forged signatures, including “Star Wars” Darth Vader and Imperial storm trooper helmets that had forged signatures from actors in the movie series, as well as posters with forged signatures of actors from the “Hunger Games” and “Twilight” movie series.
In November 2019, Tremayne allegedly shipped to an FBI undercover buyer a “Keeping Up with the Kardashians” photograph that had forged signatures of three of the television show’s personalities.
As a result of the scheme, Tremayne and his memorabilia business sold more than $1 million in memorabilia items, according to the indictment. Tremayne has been charged with 13 counts of wire fraud, three counts of mail fraud, and three counts of aggravated identity theft.
The indictment also alleges that Tremayne had moved to Mexico to avoid paying approximately $1.4 million in taxes that he owed to the U.S. government.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted, Tremayne would face a statutory maximum sentence of 20 years in federal prison for each fraud count and two years in federal prison for each aggravated identity theft count.
The FBI investigated this matter.
Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office is prosecuting this case.
Former Vice President of Teamsters Labor Union Pleads Guilty to BriberyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JOHN ULRICH, who previously served as the vice president of the International Brotherhood of Teamsters Local 812 (the “Union”) and as a trustee of the Union’s employee health benefit plan (the “Plan”), pled guilty today to soliciting tens of thousands of dollars in bribe payments from an executive with the Plan’s Third Party Administrator (the “TPA-1”), in exchange for using his influence to ensure the Union’s continued retention of TPA-1 as its Plan administrator. ULRICH pled guilty before United States District Judge Analisa Torres.
U.S. Attorney Geoffrey S. Berman said: “As he admitted in court today, John Ulrich betrayed the trust of the Union members who elected him in order to line his pockets with bribe money. This Office is committed to prosecuting corrupt union officials who abuse their positions of trust for their own financial benefit.”
According to the allegations in the Indictment, other public filings, and statements made during the plea proceeding:
The Union has more than approximately 3,000 members, and represents workers in the beverage industry throughout the New York metropolitan area. The Union’s members are covered by the Plan, which provides, among other things, life insurance, health insurance, dental, vision, and disability benefits to Union members and their families. As the Plan’s third-party administrator, TPA-1 processed health insurance claims for participants in the Plan. At all times relevant to the Indictment, ULRICH was a member and officer of the Union and a trustee of the Plan.
In or about 2013, ULRICH solicited bribe payments from an executive with TPA-1 (“Executive-1”) of $5,000 per quarter in exchange for using his influence to maintain TPA-1 as the Plan’s third-party administrator. Before ULRICH solicited these bribes, the Plan had issued a request for proposals for a new third-party administrator, and TPA-1 was at risk of losing the Plan’s business. ULRICH told Executive-1 that ULRICH would use his influence with the Union to ensure that the Plan continued to use TPA-1 to administer the Union’s health care plan. Executive-1 agreed to make $5,000 quarterly payments to ULRICH, and began doing so. Subsequently, despite receiving multiple bids from other third-party administrators, the Plan then continued to work with TPA-1.
In or about 2014, ULRICH demanded increased bribe payments from Executive-1. In part, ULRICH told Executive-1 that these increased bribe payments were needed for another trustee of the Plan, and Executive-1 began making such increased payments. On or about September 19, 2015, ULRICH again solicited additional bribe payments for this trustee.
After a special board meeting convened by the Plan in February 2016, ULRICH was terminated as vice president and trustee of the Union and Plan, respectively. In total, ULRICH demanded, and Executive-1 paid, tens of thousands in bribes before ULRICH was removed from office.
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ULRICH, 48, of Newburgh, New York, pled guilty to one count of conspiracy to solicit and receive bribe payments to influence the operation of an employee benefit plan, which carries a maximum penalty of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
ULRICH is scheduled to be sentenced by Judge Torres on April 23, 2020, at 2:00 p.m.
Mr. Berman praised the Federal Bureau of Investigation, the U.S. Department of Labor Office of Inspector General, the U.S. Department of Labor Employee Benefits Security Administration, and the U.S. Department of Labor Office of Labor-Management Standards for their outstanding investigative work in this case.
This matter is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Eli J. Mark and Louis A. Pellegrino are in charge of the prosecution.
Former Richmond Hill police officer sentenced to federal prison for enticement of a minorRead the Press Release
SAVANNAH, GA: A former Richmond Hill police officer has been sentenced to 10 years in prison for luring teen girls to meet him for sex.
Jeffrey Allen Allmond Jr., 25, of Richmond Hill, who was convicted in June by a federal jury on one count of coercion and enticement of a minor, was sentenced to 10 years in prison by U.S. District Court Judge Lisa Godbey Wood, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Allmond also must serve 10 years on supervised release after completion of his prison term, and there is no parole in the federal system.
Evidence presented at trial revealed that Allmond, then a police officer, met two girls, ages 15 and 16, via the Tinder dating app. Allmond then communicated with the girls through Snapchat and arranged to pick them up in the middle of the night outside the gate of Fort Stewart, where the two lived. Allmond then drove the teens back to his apartment and performed sexual acts on both of them. Later that night, Allmond returned the girls near the Fort Stewart gate. Allmond continued communicating with the girls through Snapchat and met up with them twice more at his apartment where he performed sexual acts on them.
The Richmond Hill Police Department asked the Georgia Bureau of Investigation (GBI) to investigate the case and terminated Allmond after initial charges were filed. The U.S. Army Criminal Investigation Command (CID) provided assistance during the investigation.
“This predator disgraced his badge while victimizing the children of our military personnel,” said U.S. Attorney Christine. “His vile behavior earned hard time in the federal prison system, and should send a warning to others who would exploit our innocent citizens.”
“Nobody is above the law, and we salute the GBI, the Richmond Hill Police Department and Assistant U.S. Attorney Groover for doing the right thing by holding this individual accountable for his unconscionable acts,” said Christopher Grey, spokesman for the U.S. Army Criminal Investigation Command. “Our CID special agents, along with the Military Police, go to great lengths to protect and serve the Army community on our installations worldwide, and we sincerely appreciate the backup from our law enforcement partners outside of our gates.”
“This former officer took an oath to serve and protect the public. When someone with whom we have placed our trust violates that trust in this manner, children and the community are damaged,” said Vic Reynolds, Director of the Georgia Bureau of Investigations (GBI). “The GBI will continue to work with our law enforcement partners to ensure all people who seek to harm our children are held accountable.”
“The men and women of the Richmond Hill Police Department are proud to serve their community with distinction every day, and we are satisfied that the outcome of this case demonstrates our agency’s steadfast intent to hold accountable those who violate the law – no matter who they are,” said Richmond Hill Police Chief Mitch Shores.
Assistant U.S. Attorney Tania Groover prosecuted the case for the United States.
Former Officer Manager Pleads Guilty to Wire FraudRead the Press Release
Harrisonburg, VIRGINIA – The former officer manager of a Winchester-based company that provides safety services to construction companies, pleaded guilty yesterday in U.S. District Court in Harrisonburg for stealing more than $200,000 during her employment. United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring made the announcement.
Amy Jo Hansen, 44, of Inwood, West Virginia, waived her right to be indicted and pleaded guilty yesterday to one count of wire fraud. At sentencing, Hansen faces up to twenty years in prison and a $250,000 fine.
“Unfortunately, theft by trusted employees is more common than most people realize,” U.S. Attorney Cullen stated today. “Where these type of embezzlement schemes involve the use of the mail, the internet, or other forms of electronic communication, they become federal crimes, and we will prosecute them.”
“So called ‘white collar’ crime is still crime and we will make sure that people who break the law like this are held accountable,” said Attorney General Herring.
According to court documents, Hansen was employed by Firstline Safety Management from 2001 until her termination in November 2018. During her tenure, Hansen worked as the office manager for more than 10 years. Her duties in that capacity included, but were not limited to, managing the office, ordering supplies, downloading credit card statements, coding purchasing for bookkeeping purposes, and sending invoices to another employee responsible for payroll and accounting.
At relevant times, Firstline utilized three access devices for the purchase of supplies and other work products. Hansen made numerous unauthorized, personal purchases on these devices. Initially, she submitted the credit card statements containing the unauthorized purchases to the company with the unauthorized purchases either miscoded to make them appear authorized or not coded at all.
Beginning in approximately January 2016, Hansen began altering credit card billing statements containing unauthorized purchases, using the edit function on Adobe software to modify the statements to falsely inflate charges from a vendor or create a nonexistent vendor charge, in order to cover up Hansen’s personal charges. The fraudulent charges increased throughout 2016, and by 2017 regularly involved unauthorized purchases of thousands of dollars a month.
The investigation of the case was conducted by the Office of the Virginia Attorney General. Assistant United States Attorney Ronald M. Huber is prosecuting the case for the United States.
Former Office Manager Indicted for Stealing Approximately $420,000 in Company FundsRead the Press Release
St. Louis, MO –Tammy Fox, 49, of Carrolton, Illinois, was indicted by a federal grand jury on two counts of wire fraud related to her former position as Office Manager of Explosive Professionals Midwest, Incorporated, also known as ExPro Midwest.
According to the Indictment, Fox served as the Office Manager for ExPro Midwest in St. Louis County, Missouri. From January, 2011 through February, 2018 Fox schemed to steal approximately $420,000 from the company. During that time, Fox issued approximately 215 unauthorized ExPro Midwest checks to herself, which she deposited into her personal bank account. Fox forged the signature of one of the owners of ExPro Midwest to those unauthorized checks. Fox spent the stolen funds on personal items and services such as clothing, automobile payments, rent payments, as well as making numerous cash withdrawals. Fox also issued unauthorized ExPro Midwest company checks to a close personal friend, and deposited those checks into her personal bank account as well. Fox also used the ExPro Midwest corporate credit card to make unauthorized purchases of personal items, such as airline tickets, general retail items, clothing, and sporting goods. As Office Manager, Fox caused the company to pay the monthly ExPro Midwest corporate credit card bills, knowing that her unauthorized personal charges were contained in the billings. In order to conceal her fraud scheme, Fox altered the company’s internal financial records which she then sent to the company’s outside accountants. Altogether, Fox’s fraud scheme netted her approximately $420,000 in funds stolen from ExPro Midwest.
If convicted, as to each charge Fox faces a maximum penalty of 20 years in prison and a $250,000 fine. Restitution is also mandatory.
In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Federal Bureau of Investigation is investigating this case. Assistant U.S. Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
Former Moroccan Diplomat and Two Others Charged in White Plains Federal Court with Visa Fraud ConspiracyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Todd J. Brown, Director of the U.S. Department of State’s Diplomatic Security Service (“DSS”), announced today that former Ambassador from the Permanent Mission of the Kingdom of Morocco to the United Nations (the “Moroccan Mission”) ABDESLAM JAIDI (“JAIDI”), his now ex-wife, MARIA LUISA ESTRELLA JAIDI (“ESTRELLA”), and ESTRELLA’s brother, RAMON SINGSON ESTRELLA (“SINGSON”) were charged in White Plains federal court with conspiring to defraud the United States, to make materially false statements, to commit visa fraud, and to induce aliens to illegally enter, come to, and remain in the United States. The charges stem from a scheme to bring domestic workers into the United States under fraudulently obtained diplomatic visas, only to then be exploited by JAIDI and ESTRELLA once they arrived. On March 13, 2019, ESTRELLA was arrested on a complaint and presented in White Plains federal court. Both JAIDI and SINGSON remain at large.
U.S. Attorney Geoffrey S. Berman stated: “Today’s charges underscore that no one is above the law. The conspiracy alleged to have occurred here was intentionally designed to circumvent important protections against exploitation for domestic workers brought to the United States. We will not tolerate this type of fraud on the United States or the exploitation of domestic workers – no matter the title or position of the alleged offender.”
DSS Director Todd J. Brown said: “We are committed to working with our law enforcement partners to prevent situations where vulnerable individuals are exploited for personal gain in schemes such as this. Because of our global presence, DSS is well positioned to work with U.S. and foreign law enforcement to stop those who would criminally manipulate instruments of international travel, such as passports and visas, to abuse the legal immigration system.”
As alleged in the Indictment unsealed in White Plains federal court[1]:
From approximately 2006 through 2019, JAIDI, ESTRELLA, and SINGSON conspired to fraudulently procure visas for at least 10 foreign domestic workers (collectively, the “Domestic Workers”), who were from the Philippines and Morocco, among other countries. At various times relevant to the Indictment, JAIDI was a diplomatic agent accredited to the Moroccan Mission with the rank of ambassador. From approximately 1980 through approximately 2016, JAIDI and ESTRELLA were married.
In order to fraudulently obtain visas for the Domestic Workers, JAIDI and ESTRELLA caused the Domestic Workers to submit visa applications containing false statements and to submit fraudulent employment contracts in support of those visa applications. SINGSON – who resides in the Philippines – helped recruit several of the Domestic Workers in the Philippines to work for JAIDI and ESTRELLA in the United States and instructed the Domestic Workers to make false statements in their visa applications and to State Department officials.
In particular, JAIDI, ESTRELLA, and SINGSON caused a number of the Domestic Workers to falsely state in their visa applications that they would be employed as administrative staff at the Moroccan Mission or at the Consulate General of the Kingdom of Morocco in Manhattan. In addition, they caused some of the Domestic Workers to submit fraudulent employment contracts to the State Department in support of their visa applications. The fraudulent employment contracts overstated the Domestic Workers’ salaries, understated their hours, and, in many cases, falsely guaranteed benefits, including, among others, sick leave, dental insurance, and medical insurance.
Once the Domestic Workers arrived in the United States, JAIDI and ESTRELLA employed the workers as their personal drivers, domestic helpers, farmhands, and assistants at their residence in Bronxville, New York and their farm in Ancramdale, New York. JAIDI and ESTRELLA paid the Domestic Workers less than the minimum salary required by law and regularly compelled them to work far in excess of 40 hours per week. In addition, JAIDI and ESTRELLA generally denied the Domestic Workers the benefits set forth in their employment contracts, compelled the Domestic Workers to work seven days a week, and required the Domestic Workers to surrender their passports.
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JAIDI, 82, of Rabat, Morocco, ESTRELLA, 60, of Scarsdale, New York, and SINGSON, 55, of Manila, Philippines, are each charged with one count of conspiracy to defraud the United States, to make materially false statements, and to commit visa fraud, which carries a maximum sentence of five years, and one count of conspiracy to induce aliens to illegally enter, come to, and remain in the United States, which carries a maximum sentence of 10 years. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the DSS Criminal Fraud Investigations Branch, the DSS Saint Albans Resident Office, the DSS New York Field Office, Homeland Security Investigations, the U.S. Department of Labor’s Wage and Hour Division from the Albany District Office, the Yonkers Police Department, and the New York State Police. In addition, Mr. Berman thanked the U.S. Attorney’s Office in the Northern District of New York, the Community Development Project at the Urban Justice Center, and the Human Trafficking Program at the Worker Justice Center of New York for their assistance in this investigation.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Sam Adelsberg, Gillian Grossman, and James Ligtenberg are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Georgia attorney arraigned for fraud and theft of client fundsRead the Press Release
ATLANTA - Carla B. Gaines, an attorney formerly licensed in Georgia, has been arraigned on charges of wire fraud and theft from a local government that receives federal funding.
“Attorneys who allegedly lie and steal abuse the trust owed to their clients and violate the law,” said U.S. Attorney Byung J. “BJay” Pak. “The indictment alleges that Gaines stole client money that should have been held in escrow, and then lied about the theft in an attempt to lull her victims into a false sense of security.”
“It is very disheartening when a lawyer, sworn to uphold the Constitution of the United States and the Constitution of the jurisdiction they are licensed in, violates that oath,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “When they do, the FBI is committed to protecting the citizens who suffer from their transgression.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Carla B. Gaines was an attorney licensed in Georgia until she was disbarred on November 18, 2019. From August 2014 through March 2016, she allegedly stole $337,400 that she had received from the Clayton County government to hold in escrow for payment to a Georgia business, Kelete, Inc., located in College Park, Georgia. After the theft, Gaines allegedly lied to Clayton County and Kelete to convince them that she still had the money and payment was on the way.
In 2014, Clayton County entered into an agreement with Kelete for Kelete to sell a right of way or easement through Kelete’s property to the County, for $712,400. Gaines was retained to serve as the escrow agent for this real estate transaction. Clayton County transferred $712,400 to Gaines for her to hold in escrow and complete the transaction.
In November 2015, Clayton County and Kelete closed the real estate deal. Gaines paid $375,000 to Kelete and its bank at the time of closing. Under the settlement agreement, Gaines was required to hold the remaining $337,400 in escrow until Kelete removed certain trade fixtures and improvements on the property. In March 2016, Kelete completed the removal and requested the remaining payment of $337,400. But Gaines never paid, despite repeated demands. Instead of holding the $337,400 in escrow as required, Gaines had diverted the funds to pay for personal and law firm expenses.
Beginning in March 2016, when payment was demanded, Gaines repeatedly made false representations to Clayton County and Kelete about whether she had the money and whether payment was on the way. For example, Gaines falsely claimed that the wire was “pending,” that the wire was “stuck,” that she had a check ready for Kelete, that she was “awaiting a call from the bank,” that “the bank was holding the wire,” that she had “straightened out the issue,” and that the “wire should be processed Monday.” These representations were false. No wires were stuck, pending, held, or on their way; and no check was ready. Gaines had far less than $337,400 in her bank accounts at the time she made these misrepresentations.
Kelete sued Gaines to recover the $337,400 it was owed. As part of that civil proceeding, Gaines testified in two depositions, in March 2017 and June 2018, and allegedly lied. Gaines testified that she had paid a portion of Kelete’s funds to another client, a pastor, in error. Gaines also testified that she had called the pastor and informed him of the mistake, and that he had promised repeatedly to pay the money back to Gaines. These representations were false.
Carla B. Gaines, 60, of Mableton, Georgia, was indicted by a federal grand jury on December 10, 2019. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
The Federal Bureau of Investigation is investigating this case.
Assistant U.S. Attorney Stephen H. McClain, Chief of the Complex Frauds Section, is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former CFO Arrested and Charged with Embezzling Millions of Dollars from Construction Company and Defrauding LendersRead the Press Release
NEWARK, N.J. – The former chief financial officer (CFO) of a Sussex County retail construction company was arrested today for defrauding the company and several lenders, including by embezzling millions of dollars for his own personal benefit, U.S. Attorney Craig Carpenito announced.
Jonathan Baker, 38, of Green Township, New Jersey, was indicted on five counts of wire fraud and three counts of money laundering. He was arrested this morning by special agents of the FBI and is scheduled to appear this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.According to documents filed in this case and statements made in court:
Baker held the title of CFO of Victim-Company 1, a small, privately held retail construction company located in Sparta, New Jersey. The company acted as a construction manager and a general contractor for construction projects, such as new business offices, retail spaces, and restaurants. Baker also held the title of manager of Victim-Company 2, which held 100 percent of the voting and equitable interest in Victim-Company 1.
From 2015 through 2018, Baker defrauded both companies and several commercial lenders, embezzling millions from the companies and fraudulently inducing commercial lenders into providing funds to Baker and his associated entities through fraudulent use of Victim-Company 1’s name, bank statements, balance sheet, and bank accounts.
Baker misappropriated millions of dollars from the Victim-Companies’ bank accounts and used the funds for his personal expenses, including mortgage payments on Baker’s residence, the purchase of a BMW, and the purchase of six donkeys. He also used the Victim-Companies’ credit cards to make unauthorized personal purchases.
Baker obtained funds by causing Victim-Company 1 to enter into agreements with commercial lenders through falsified documents, such as false resolutions of the Board of Directors of Victim-Company 1.
Baker concealed the fraud by making false statements to members of the Victim-Companies after they confronted him with evidence of the fraud. He falsely claimed that a commercial lender had made a mistake in filing a lien against Victim-Company 1 and repeatedly misrepresented that the commercial lender would be issuing a retraction and apology. Baker then refused to meet or join conference calls with the members of the companies to discuss the liens against Victim-Company 1, refused to produce the Companies’ bank statements, changed the locks on the Companies’ offices, and attempted to disable the Companies’ email and phone system.
The wire fraud counts each carry a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. The money laundering counts each carry a maximum potential penalty of 10 years in prison and $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Jonathan Fayer and Courtney A. Howard of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Michael Weinstein Esq., Hackensack, New Jersey
Former Associate Clerk in Office of the Clerk of the Circuit Court of Cook County Sentenced to Two Years in Prison for Lying to Federal Grand JuryRead the Press Release
CHICAGO — A former associate clerk in the Office of the Clerk of the Circuit Court of Cook County was sentenced today to two years in prison for lying under oath to a federal grand jury.
BEENA PATEL, 58, of Chicago, was convicted earlier this year of making false declarations before a grand jury. The grand jury was conducting an investigation of possible criminal violations in connection with the purchasing of jobs and promotions in the Clerk’s office.
U.S. District Judge Sara L. Ellis imposed the two-year sentence after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Patrick M. Blanchard, Cook County Inspector General; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI.
“Defendant not only had answers to the questions the grand jury was asking, but had information that went to the very heart of its investigation,” Assistant U.S. Attorneys Heather McShain and Ankur Srivastava argued in the government’s sentencing memorandum. “Witnesses who lie during the course of a grand jury investigation not only violate their solemn oath to tell the truth, but also impede the grand jury’s ability to gather evidence.”
According to evidence at trial, the grand jury was conducting an investigation of possible criminal violations in connection with the purchasing of jobs and promotions in the Clerk’s office. Patel sold campaign fundraiser tickets on behalf of the Clerk to colleagues in the office and knew that other employees did the same. Yet when asked about it during grand jury testimony on Oct. 15, 2015, Patel denied selling the tickets to employees and denied knowing that other employees had done the same. The jury at trial found that Patel’s statements were false.
Evidence further revealed that Patel provided false statements to the grand jury about two other matters. Patel lied when she denied having recent conversations with another Clerk’s Office employee who had previously loaned $15,000 to a company associated with the Clerk and her husband. Patel also falsely denied contacting the Clerk’s Chief of Staff regarding a promotion opportunity for a Clerk’s Office employee whose brother had previously donated $10,000 to the Clerk’s campaign.
Former Army Employee Charged with Bribery, Kickbacks in Connection with Scheme to Steer ContractsRead the Press Release
A former civilian employee of the U.S. Army was charged in an indictment unsealed today for his role in a scheme to steer Army contracts for work to be performed at Camp Arifjan, a U.S. Army base in Kuwait.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent Jozette Gillespie, Acting Director, U.S. Army Criminal Investigation Command's (CID) Major Procurement Fraud Unit and Special Agent in Charge Robert E. Craig Jr. of the U.S. Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office made the announcement.
Ephraim Garcia, 62, was charged in an indictment filed in December 2018 in the District of Columbia with one count of offering a bribe, one count of receiving illegal gratuities and one count of offering kickbacks. The indictment further charges Gandhi Raj, 39, with paying illegal gratuities to Garcia.
As alleged in the indictment, Garcia worked in the U.S. Army’s Directorate of Public Works and was involved in the solicitation, award and management of various government contracts related to projects at Camp Arifjan. In or around September 2015, Garcia allegedly approached an employee of a prime contractor and offered to pay him in exchange for his assistance in steering contracts to a particular subcontractor owned by Raj, Gulf Link Venture Company. Garcia allegedly told the prime contractor employee that Gulf Link would artificially inflate the cost of certain of its bid proposals, and Garcia, Gulf Link and the prime contractor employee would split the proceeds. Additionally, over a period of about five years, Garcia and/or members of his immediate family allegedly received over $170,000 in wire transfers from Raj and other individuals associated with Gulf Link and another subcontractor that was bidding on work under the prime contract.
Garcia was arrested on Dec. 10, 2019, in the Philippines, where he has been residing since 2016. Raj, who was living in Kuwait at the time of the offense, remains a fugitive.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Army CID and DCIS investigated the case. Trial Attorney Christopher D. Jackson of the Criminal Division’s Fraud Section is prosecuting the case.
Five Sentenced for Roles in Timber Theft Conspiracy from Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that five individuals received sentences after convictions for conspiring to steal timber from the Menominee Indian Reservation:
The sentences, imposed on December 10, 2019, by United States District Judge William C. Griesbach, were the result of guilty pleas to a charge of Conspiracy in violation of 18 U.S.C. § 371, entered by the five individuals in July 2019. Judge Griesbach sentenced the defendants as follows:
Defendant
Months of Prison
Months of Supervised Release
Restitution
Dugan R. Webster, (Age: 42), Shawano, Wisconsin
20
36
$219,100.75
Arthur P. Fish (Age: 49), Keshena, Wisconsin
18
36
$408,248.90
Chauncey J. Webster, Jr. (Age: 49), Neopit, Wisconsin
12 +1 day
36
$178,322.65
Derrin B. Webster, (Age: 21), Neopit, Wisconsin
7
36
$178,322.65
Melvin T. Caldwell, Jr. (Age: 44), Neopit, Wisconsin
3
36
$99,000.00
The investigation revealed that the defendants logged timber for Menominee Tribal Enterprises (MTE) from designated areas on the Menominee Indian Reservation. On at least 100 occasions, the defendants and others used forestry equipment to cut down extra trees beyond what MTE authorized. Fish used a tractor-trailer to transport the extra timber to two sawmills outside the boundaries of the reservation.
Dugan and Derrin Webster received payments from the mills for the timber, which the defendants divided amongst themselves. The outside sawmills paid Dugan and Derrin Webster $408,248.90 between January 2012 and September 2018 for the timber the defendants and others removed from the reservation without permission. Investigators discovered evidence of the defendants using spray paint to make it appear they were working with trees designated by MTE for harvest.
In sentencing the defendants, Judge Griesbach noted the seriousness of the crimes the defendants committed. Judge Griesbach also remarked upon the terrible damage to the community caused by the defendants, necessitating a sentence that reflected the “impact on the community, along with the breach of trust the defendants each had with the tribe.” Judge Griesbach also emphasized the strong cultural ties between the Menominee people and the forest, which they have protected and relied upon for centuries. The sentences were a necessary deterrent to those would might consider similar actions, undertaken out of greed.
The case was investigated by the Menominee Tribal Police Department, Menominee Conservation Department, United States Forest Service, and Federal Bureau of Investigation. Special assistance was provided by Menominee Tribal Enterprises Forestry. It was prosecuted by Assistant United States Attorney Andrew J. Maier.
# # #
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Public Information Officer Kenneth Gales 414-297-1700
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Five Members of Drug Trafficking Organization IndictedRead the Press Release
CAMDEN, N.J. – A grand jury has returned an indictment against five members of a drug-trafficking organization for conspiring to distribute significant amounts of narcotics through an open-air drug market in Camden, U.S. Attorney Craig Carpenito announced today.
The indicted defendants include: Juan Figueroa, 22; Christopher Vasquez, 29; Jose Diaz, 27; and Jose Agron, 26, all of Camden; and Dwight Williams, 28, of Lumberton, New Jersey. The indictment charges each defendant with participating in a drug trafficking conspiracy that involved at least one kilogram of a mixture and substance containing heroin; at least 280 grams of a mixture and substance containing cocaine base (“crack cocaine”); and quantities of cocaine and fentanyl. Each defendant named in the indictment was previously charged by federal complaint.
Nine other members of the drug-trafficking conspiracy – Ronnie Lopez, Nelson Salcedo, Paul Salcedo, Waldemar Garcia, William Carrillo, Elisa Rivera, Ramon Velez, Naeem Sadler, and Jasmin Velez – previously have pleaded guilty in this case. The charges against four other defendants in this case remain pending, and they and the defendants indicted today are presumed innocent unless and until proven guilty.
According to documents filed in this case and statements made in court:
The FBI used surveillance, confidential informants, consensual recordings, multiple controlled drug purchases, a GPS vehicle tracker, search warrants of several different locations, and several court-authorized wiretaps to uncover the operations of a drug trafficking organization that dealt heroin, crack cocaine, cocaine, and fentanyl in and around Camden. The organization’s activities were concentrated on the 400-500 blocks of Pine Street, where members distributed drugs to customers who approached on foot and in vehicles. The organization also supplied drugs elsewhere, including in and around the residences of some of its members.
Members of the organization previously had conducted drug trafficking activities in and around the 1900 block of Filmore Street. After a fatal, drug-related shooting in that area in April 2017, local law enforcement increased their presence in the area and the drug-trafficking activities ultimately shifted to the area around Pine Street.
The investigation revealed that the organization’s members worked together in a multi-layered organization to supply drugs. The main role of Ronnie Lopez – one of the leaders of the organization – was to obtain bulk quantities of illegal drugs for sale to customers. The organization also had distributors and packagers, such as Carlos Perez and Nelson Salcedo, whose main roles were to obtain drugs from Lopez and others and to prepare and package the drugs for distribution downstream. The organization used “runners,” or managers, like Juan Figueroa and Paul Salcedo. These individuals obtained drugs from higher-level distributors and packagers within the organization and then provided those drugs downstream to shift managers like Jose Diaz and Christopher Vazquez. “Runners” also collected drug proceeds from lower-level shift managers and provided that money to higher-level members of the organization, such as Lopez. Shift managers, in turn, supervised the organization’s set workers, including Jose Agron, Dwight Williams, Elisa Rivera, Jasmin Velez, Kaliel Johnson, William Carrillo, Meylin Troncoso, Waldemar Garcia, Naeem Sadler, Jameel Byng, Ramon Velez and David Velez. These set workers sold drugs directly to customers and passed the proceeds up the organizational hierarchy.
Multiple communications intercepted by wiretaps reflected that members of the organization owned guns and were prepared to use them. In November 2018, law enforcement officers recovered firearms during the execution of several search warrants on locations related to the drug-trafficking organization. Juan Figueroa currently is facing several charges in Camden County Superior Court regarding the Aug. 7, 2018, shooting of two law enforcement officers, who were in an unmarked car and wearing plain clothes after having conducted surveillance earlier in the day on members of the organization. Also, some of the heroin that was purchased from the organization bore the same stamp as drugs found at the sites of drug overdoses in Camden, including two fatal overdoses.
The drug trafficking conspiracy count carries a mandatory penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine.
U.S. Attorney Craig Carpenito credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael T. Harpster; the Camden County Police Department, under the direction of Chief Joseph Wysocki; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sheriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief William P. Monaghan; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s indictment. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel:
Juan Figueroa: Paul Sarmousakis Esq., Avalon, New Jersey
Vasquez: Edward J. Crisonino Esq., Collingswood, New Jersey
Diaz: John B. Brennan Esq., Marlton, New Jersey
Agron: Gil Scutti Esq., Somerdale, New Jersey
Williams: Justin Loughry Esq., CamdenFederal Court Shuts Down Illinois Tax Return PreparerRead the Press Release
A federal court has permanently barred Jackelin Brooks, a Bolingbrook, Illiniois tax return preparer, from preparing federal tax returns for others, the Justice Department announced today. The civil injunction order was entered by the U.S. District Court for the Northern District of Illinois.
According to the government’s complaint, Brooks, a Bolingbrook resident, prepared returns that reported false income and expenses from Schedule C businesses and improperly claimed the American Opportunity Tax Credit and the Residential Energy Credit, resulting in refunds to which her customers were not entitled. The complaint alleges that the falsified tax returns cost the United States tens of thousands of dollars in tax revenue. The injunction was entered against Brooks by default because she failed to defend against the government’s allegations.
Return preparer fraud is one of the IRS’s “Dirty Dozen” tax scams for 2019. In the past 10 years, the Justice Department’s Tax Division has obtained injunctions against hundreds of return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website.
FBI sting operation nabs four men charged with attempting to entice minors to engage in sexual activityRead the Press Release
ATLANTA – Four men have been charged with attempted enticement of a minor to engage in sexual activity. Rolando Hernandes, Mark Hanna, James Daniel Stinchcomb, and William Sage were arrested separately for attempting to entice a minor to engage in sexual activity.
“During the Thanksgiving holiday our federal and local law enforcement partners remained vigilant in an effort to identify individuals targeting minors online for unlawful sex acts,” said U.S. Attorney Byung J. “BJay” Pak. “Those who attempt to prey on children should know that they face arrest and jail when they seek to exploit the youngest members of our community.”
“The FBI will always be vigilant in pursuing those who choose to prey on our most vulnerable citizens, our children,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “I would like to thank our law enforcement partners and their task force officers as part of the FBI’s Metro Atlanta Child Exploitation and Human Trafficking (MATCH) task force for their commitment to making these arrests.”
According to U.S. Attorney Pak, the charges and other information presented in court: between on or about November 19, 2019, through on or about December 6, 2019, the FBI communicated online with several men during undercover operations targeting adults seeking minors for sex. The operation resulted in the arrests of four men: Sage, Hernandes, Hanna, and Stinchcomb.
On November 19, 2019, Sage began communicating online with an undercover agent. Over the next several days, Sage exchanged multiple messages with the agent in an effort to meet for sex with a person he believed to be an 11-year-old girl. During the chats, Sage described the sex acts he intended to do to the child. On November 25, 2019, Sage traveled to Norcross, Georgia, for a planned meeting with the child. FBI agents and Gwinnett County police officers immediately arrested him upon his arrival.
Also on November 19, 2019, Hernandes began communicating online with an undercover agent. Over the next eight days, Hernandes exchanged multiple messages with the agent in an effort to meet for sex with a person he believed to be a 10-year-old girl. Hernandes described the sex acts he intended to do to the child during the chats. On November 27, 2019, Hernandes traveled to Smyrna, Georgia, for a planned meeting with the child. FBI agents and Cobb County police officers immediately arrested him upon his arrival.
On November 22, 2019, Hanna began communicating online with an undercover agent. Over the next several days, Hanna exchanged multiple messages with the agent in an effort to meet for sex with a person he believed to be an 11-year-old girl. Hanna described the sex acts he intended to do to the child during the chats. On December 4, 2019, Hanna traveled to Norcross, Georgia, for a planned meeting with the child. FBI agents and Gwinnett County police officers immediately arrested him upon his arrival.
On November 19, 2019, Stinchcomb began communicating online with an undercover agent. Over the next two-and-a-half weeks, Stinchcomb exchanged dozens of messages with the agent in an effort to meet for sex with a person he believed to be an 11-year-old girl. Stinchcomb followed a similar pattern of describing the sex acts he intended to do to the child during the chats. On December 6, 2019, Stinchcomb, who is a Gwinnett County employee, traveled to Norcross, Georgia, in his county work vehicle for a planned meeting with the child. FBI agents and Gwinnett County police officers immediately arrested him upon his arrival.
Rolando Hernandes, 30, of Mableton, Georgia, was arraigned on December 5, 2019. Mark Hanna, 29, of Anaheim, California, was arraigned on December 10, 2019. James Daniel Stinchcomb, 34, of Bethlehem, Georgia will be arraigned later this month. William Sage, 32, of Sandy Springs, Georgia will be arraigned on December 18, 2019.
The Federal Bureau of Investigation is investigating these cases.
Assistant U.S. Attorneys Laurel Boatright, Theodore S. Hertzberg, and Leanne Marek are prosecuting these cases.
Members of the public are reminded that the indictments only contain charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
These cases are being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Executive of Purported Caffeinated Snack Company Sentenced to 4 Years in Prison for Defrauding Investors of More Than $2.3 MillionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that BARRY SCHWARTZ was sentenced to four years in prison today by U.S. District Judge Jed S. Rakoff for participating in a conspiracy to defraud more than 50 investors in the Starship Snacks Corporation of more than $2.3 million, by making false and fraudulent representations about, among other things, the status of the company’s products, guarantees that purportedly backed the investments, and the interest of large multi-national corporations in acquiring the companies.
U.S. Attorney Geoffrey Berman said: “Barry Schwartz participated in a conspiracy to defraud investors, telling them their investments were safe and guaranteed when, in fact, he and his co-conspirators had misappropriated investor funds to support their lavish lifestyles. Schwartz lied about the readiness of his company’s products and about the claim that two large multi-national companies were vying to buy the company. Schwartz’s house of lies eventually collapsed, bringing financial devastation to many of its victims. Today Schwartz was held accountable for the criminal conduct that defrauded more than 50 investors of more than $2.3 million.”
According to the allegations contained in the Indictment filed against SCHWARTZ and statements made in related court filings and proceedings, including the trial of co-defendant Joel Margulies:
The Starship Snack Corporation Fraud Scheme
From approximately August 2015 through August 2017, SCHWARTZ, Margulies, and a co-conspirator, Lisa Bershan, raised more than $2.3 million from investors in a company originally called the Awake Company and later renamed Starship Snacks Corporation (“Starship”), which purported to be in the business of developing and manufacturing caffeinated snack products, based on the following misrepresentations, among others: (a) that investments in Starship were guaranteed against losses by Bershan; (b) that Starship was going to be acquired by Monster Beverage (“Monster”) in a one-for-one stock exchange; (c) that Starship was engaged in actual product development and had procured samples of candies infused with caffeine; (d) that SCHWARTZ and others at Starship had entered into non-disclosure agreements with Monster that prohibited them from discussing Starship’s purported acquisition by Monster and its purported product development. SCHWARTZ held himself out as Starship’s corporate secretary.
After receiving funds from Starship investors, SCHWARTZ and his co-conspirators used those funds to maintain their own extravagant lifestyles, spending hundreds of thousands of dollars on things like luxury clothing, plastic surgery, interior decorating, the rental of a high-end apartment in New York City, and the down payment for a multimillion-dollar house in Florida.
In addition to the prison term, SCHWARTZ, 73, was sentenced to two years of supervised release. SCHWARTZ was also ordered to forfeit $2,163,214. A restitution order will be entered within 90 days.
Lisa Bershan was convicted upon a guilty plea, and sentenced by Judge Rakoff on November 22, 2019, principally to a term of seven years in prison. Joel Margulies was convicted following a seven-day jury trial before Judge Rakoff and is scheduled to be sentenced on December 16, 2019.
Mr. Berman praised the work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Christine Magdo and Negar Tekeei are in charge of the prosecution.
Ex-Northern Cheyenne Tribal President sentenced to six months in prison for travel fraud schemeRead the Press Release
BILLINGS—The former president of the Northern Cheyenne Tribe was sentenced today to six months in prison, three years of supervised release and ordered to pay $25,092 restitution for a travel fraud scheme in which he admitted stealing from federal, state and tribal agencies, U.S. Attorney Kurt Alme said.
Lawrence Jace Killsback, 40, of Busby, pleaded guilty in July to wire fraud and to false claims conspiracy. In admitting the scheme to investigators, Killsback noted that this travel fraud happens all of the time on the reservation. Killsback was aware of this scheme and described this as a culture of fraud.
U.S. District Judge Susan P. Watters presided.
“Mr. Killsback exploited his positions as the tribe’s health director and then as its president to steal funds intended to benefit tribal members and programs for his own personal enrichment. His conduct violated the public’s trust in his official positions. We will prosecute such frauds to the full extent of the law. I want to thank Assistant U.S. Attorneys Bryan Dake and Ryan Weldon, the Guardian’s Project and the Office of Inspector General for the Department of Health and Human Services and the Department of Interior, for their work on the case,” U.S. Attorney Alme said.
The prosecution said in court records that Killsback stole money first in his position as the Tribe’s health director and later as the Tribe’s president. The thefts occurred multiple times over a three-year period and resulted in more than $20,000 in improper payments to Killsback. As part of the scheme, Killsback submitted false or fraudulent invoices to tribal, state and federal entities claiming travel-related expenses for travel for which he was already being reimbursed or that never occurred or for dates or rates that were exaggerated.
In one scheme, Killsback double and triple dipped travel reimbursement on at least 10 trips he made while serving on various state and national boards.
In another scheme, Killsback falsified hotel invoices by changing the number of days, rate or total expenses for trips through a software program used by himself or a co-conspirator.
Although Killsback disputed the amount, prosecutors said he received more than $20,000 in improper reimbursements from 2014 to 2017.
Assistant U.S. Attorneys Bryan Dake and Ryan Weldon prosecuted the case, which was investigated by the Department of Health and Human Services, Office of Inspector General and the Department of Interior, Office of Inspector General. The case is part of the Guardians Project, which is a multi-agency anti-fraud task force that investigates and prosecutes persons attempting to use federal funds for private gain.
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Eleven Individuals Charged with Conspiracy to Distribute Heroin, Fentanyl, and CocaineRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging 11 individuals with federal drug trafficking offenses. Ahmad Rashad Weston, a/k/a “Blood,” (42, St. Petersburg); Charleston Shellie Long, a/k/a “Shellie,” (38, St. Petersburg); Shyron Deonta Givens, a/k/a “Ron,” (42, St. Petersburg); Charlie James McDuffy, Jr. (32, Clearwater); Teddy Terrell Strachan (38, Pembroke Pines); Ceveghnta Billvon Guyden, a/k/a “Chop,” (41, St. Petersburg); Quincy Alfonzo Turner, a/k/a “Chico,” (42, St. Petersburg); Justice Deshonna McLaurin, a/k/a “Jussy,” (24, St. Petersburg); Willie Carl McLaurin, a/k/a “Baldy,” (53, St. Petersburg); Ja’Vonta Willie McLaurin, a/k/a “Tay Tay,” (26, St. Petersburg); and Willie Carl McLaurin, Jr. (30, St. Petersburg) are charged with conspiracy to distribute heroin, fentanyl, and cocaine. If convicted, each faces a maximum penalty of 40 years in federal prison. Weston and Turner, are also charged with distributing heroin and fentanyl. If convicted, each faces a maximum penalty of 20 years in federal prison.
According to the indictment, between on an unknown date, but no later than August 2018, and continuing through November 26, 2019, the defendants conspired to distribute heroin, fentanyl, and cocaine.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
These cases were investigated by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Agencies involved in this OCDETF operation include the Drug Enforcement Administration, the St. Petersburg Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney David Waterman.
Eagle Butte Woman Indicted for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine.
Kristen Nordvold, a/k/a Kristen Pretty Weasel, a/k/a Kristen Red Dog, age 38, was indicted on December 10, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on December 11, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is life in prison and/or a $10,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning on or about January 1, 2016, and continuing to on or about December 10, 2019, in the District of South Dakota and elsewhere, Nordvold, knowingly and intentionally, combined, conspired, confederated, and agreed with others to knowingly and intentionally distribute and possess with intent to distribute 500 grams or more of methamphetamine.
The charge is merely an accusation and Nordvold is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Nordvold was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Doctor and Occupational Therapist Sentenced to Prison for Participating in $30 Million Scheme to Defraud Medicare and MedicaidRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that physician PAUL J. MATHIEU was sentenced yesterday evening by U.S. District Judge Lorna G. Schofield to 48 months in prison for his participation in a $30 million scheme to defraud Medicare and the New York State Medicaid Program. Between 2007 and 2013, MATHIEU falsely posed as the owner of three medical clinics, which were actually owned a by corrupt businessman, and falsely claimed that he had examined and treated thousands of patients whom he had not in fact seen. In addition, occupational therapist LINA ZHITNIK was sentenced by Judge Schofield on December 3, 2019, to 14 months in prison for her role in the same scheme, which included falsifying medical records in order to claim that she had provided therapy services that she had not in fact provided. MATHIEU was convicted in May 2019, following a six-week trial, on charges of health care fraud, wire fraud, mail fraud, conspiracy to commit those offenses, and conspiracy to make false statements in connection with a federal health care program. ZHITNIK pled guilty to health care fraud and conspiracy to commit health care fraud, mail fraud and wire fraud in April 2019, during jury selection for trial.
U.S. Attorney Geoffrey S. Berman said: “Corrupt doctors and therapists who defraud Medicare and Medicaid betray their medical training, their professions, their patients, and the taxpayers. These taxpayer-funded programs are designed to provide essential medical services to the elderly and the needy, not to enrich corrupt doctors and other fraudsters. Paul Mathieu’s sentence sends a clear message that those who cheat Medicare and Medicaid will be held accountable.”
According to the evidence presented at trial and other public documents, including Zhitnik’s guilty plea transcript:
Between 2007 and 2013, Aleksandr Burman – who is currently serving a 10-year prison term for his participation in this scheme – owned and operated six medical clinics in Brooklyn (the “Clinics”) that fraudulently billed Medicare and Medicaid approximately $30 million for medical services and supplies that were not provided, were provided without regard to medical necessity, or were otherwise fraudulently billed. Under New York State law, professional medical corporations must be owned by a medical professional. To circumvent this requirement, Burman and MATHIEU agreed to have MATHIEU pose as the true owner of a succession of three different clinics, which Burman owned and operated for more than five years, from 2007 through 2013. Throughout those years, MATHIEU signed a variety of fraudulent documents that falsely represented to banks, Medicare, Medicaid, and others that MATHIEU was the sole owner of The Medical Office of Paul J. Mathieu, P.C.; Sunlight Medical, P.C.; and Ocean View Medical of Brooklyn, P.C. Burman also hired two other doctors, Ewald J. Antoine and Mustak Y. Vaid, to pose fraudulently as the owners of three additional, related clinics.
MATHIEU also came weekly to several of the clinics, where he signed stacks of false and fraudulent medical charts, and issued referrals for expensive additional testing, occupational therapy, and physical therapy. For the last 3½ years of the scheme, MATHIEU saw no patients at all, simply falsifying enormous stacks of phony medical records falsely stating that he had seen and treated such patients.
In addition to his role in the clinics, MATHIEU also wrote unneeded prescriptions for adult diapers and other incontinence products, which prescriptions were filled at Universal Supply Depot, a medical supply company also owned by Aleksandr Burman. MATHIEU was so prolific in this regard that, throughout the period of the fraud, he was the No. 1 top prescriber of adult diapers in the State of New York. The only year MATHIEU ranked second, he ranked behind another member of the same criminal scheme. MATHIEU continued to write such prescriptions, even after the medical clinics closed after Medicare stopped paying any of the clinics’ claims.
ZHITNIK participated in the scheme for more than a year, from mid-2011 through mid-2012. ZHITNIK was paid to come to one of the clinics for a portion of each day. While there, ZHITNIK signed large numbers of medical records to be used in fraudulent billing, falsely claiming to have provided occupational therapy services that she did not in fact provide. Indeed, ZHITNIK signed such fraudulent paperwork, backdated, even for weeks when she was on family vacations in New Orleans and Miami, as well as when she was on shorter trips or out of town taking private flying lessons.
MATHIEU is the tenth defendant, and the third physician, who has been sentenced in this case and a related case. The other defendants, each of whom pled guilty, include: Aleksandr Burman, who was sentenced in a related case on May 8, 2017, to 10 years in prison; Marina Burman, the former wife of Aleksandr Burman and the owner of a related medical supply company, sentenced on May 17, 2018, to three years in prison; Mustak Y. Vaid, a physician sentenced on August 1, 2018, to 18 months in prison; Ewald J. Antoine, a physician sentenced on August 21, 2018, to a year and a day in prison; Asher Oleg Kataev, a Burman business partner, sentenced on May 31, 2018, to three years in prison; Alla Tsirlin, a Clinic office manager, sentenced on June 5, 2018, to a year and a day in prison; and Edward Miselevich and Ivan Voychak, Burman partners who jointly ran a related ambulette company, sentenced on June 12 and July 19, 2018, to three years in prison each.
One additional defendant awaits sentencing, physical therapist Hatem Behiry, who was convicted at trial with MATHIEU.
In addition to the prison term, MATHIEU, 54, of Morristown, New Jersey, was sentenced to three years of supervised release. Judge Schofield also ordered MATHIEU to pay restitution and forfeiture. ZHITNIK, 52, of Brooklyn, New York, was also sentenced to three years of supervised release, ordered to pay restitution of $1,369,554, and to forfeit $89,682.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation, the Office of the Inspector General of the U.S. Department of Health and Human Services, and the New York State Office of the Medicaid Inspector General (“OMIG”).
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys David Raymond Lewis, Stephen J. Ritchin, and Timothy V. Capozzi are in charge of the prosecution.
Defendant indicted in phone scam targeting U.S. victimsRead the Press Release
ATLANTA - Shivang Bharatkumar Thakur has been indicted for his involvement in a transnational criminal organization that victimized approximately 288 people across the United States through a fraudulent India-based call-center scheme that resulted in over $330,000 in losses.
“Thakur allegedly worked with a phone scam ring that tricked unwitting U.S. residents into sending money they couldn’t afford to lose in the hope of receiving a loan in return,” said U.S. Attorney Byung J. “BJay” Pak. “This case exists as an example of how federal and state law enforcement are partnering to investigate transnational phone scams and hold the scam participants, including those who launder scammed funds, accountable.”
“This indictment demonstrates that TIGTA and its law enforcement partners continue to make significant progress in investigating IRS-related impersonation scams,” said J. Russell George, the Treasury Inspector General for Tax Administration. “We appreciate the efforts of the U.S. Attorney’s Office for the Northern District of Georgia and the Bloomington, Minnesota Police Department.”
“By utilizing our state and federal law enforcement partners, this case that crossed several state and national boundaries, was investigated and resulted in the indictment of Shivang Thakur. Phone scams all too often target the vulnerable and I am proud of those who worked together to hold Thakur accountable to those he victimized,” said Bloomington, Minnesota Police Chief Jeff Potts.
According to U.S. Attorney Pak, the indictment, and other information presented in court: the defendant, Shivang Bharatkumar Thakur, is an Indian national who arrived in the United States in August 2017 and allegedly began laundering funds derived from phone scams shortly thereafter. As part of the fraud, call centers based outside the United States defrauded U.S. residents, including elderly victims, by misleading them over the telephone into sending money utilizing a loan scam. As part of the scam, callers deceived U.S. residents into believing that they were eligible for fictitious loans. Callers directed the U.S. residents to pay supposed taxes and fees to prove their ability to repay the loan and verify their bank accounts. The victims received nothing in return.
From on or about August 12, 2017, to on or about January 10, 2018, Thakur allegedly retrieved over $330,000 in cash payments of scammed funds from money transmitters using fake identification documents and fraudulent information. Approximately 288 victims sent the funds in response to the fraud. Thakur used approximately 71 fake identification cards with numerous aliases to retrieve the scammed funds.
Shivang Bharatkumar Thakur, 26, of India, was charged with conspiracy to commit money laundering and six counts of money laundering. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department Of Justice Transnational Elder Fraud Strike Force. The Strike Force focuses on investigating and prosecuting defendants associated with foreign-based fraud schemes that disproportionately affect American seniors. These include romance scams, phone scams, mass-mailing fraud schemes, and tech-support fraud schemes. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.
The U.S. Treasury Inspector General for Tax Administration and the City of Bloomington, Minnesota Police Department are investigating the case.
Assistant U.S. Attorney Jolee Porter is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Dawsonville real estate agent pleads guilty to defrauding clientsRead the Press Release
GAINESVILLE, Ga. - Carol Michaelson, a formerly licensed real estate agent, pleaded guilty today to defrauding her clients by faking property sales, forging contracts and deeds, and then pocketing her victims’ money.
“This defendant stole her clients’ hard-earned money by pretending to purchase properties for them, while pocketing their funds for her own personal use,” said U.S. Attorney Byung J. “BJay” Pak. “She then tried to cover her tracks with fake sales agreements and forged deeds. Michaelson is a repeat offender, having previously lost her real estate license for defrauding clients.”
“This case demonstrates the commitment the Secret Service and our law enforcement partners have in aggressively pursuing those who defraud innocent victims,” said Steven R. Baisel, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “This guilty plea should serve as a reminder to other like-minded individuals that we will protect our economic system and arrest criminals who violate public trust for personal gain.”
“We are grateful to all the involved criminal justice agencies who worked so diligently to help close these cases. It is our continued desire that justice will be served in hopes of deterring these types of crimes,” said Dawson County Sheriff Jeff Johnson.
According to U.S. Attorney Pak, the charges and other information presented in court: Carol Michaelson operated a scheme to defraud her clients while acting as a real estate agent. She pretended to arrange real estate purchases for her clients and received funds from them to complete the purchases, but then diverted the funds to her own personal use. In furtherance of the scheme, she prepared fraudulent real estate contracts listing false owners, forged signatures on the contracts and other agreements, and filed fraudulent warranty deeds with forged signatures with the county clerk’s office. Michaelson also sent emails to her victims impersonating closing attorneys, loan officers, and other financial and real estate personnel, to trick the victims into believing that the real estate transactions were legitimate and progressing.
Michaelson defrauded her victims in a variety of ways. In some cases, she falsely informed victims that certain properties were for sale by their owners, when in fact they were not; and the true owners were unaware of Michaelson’s false representations. In another instance, after Michaelson deceived a victim into believing that she had purchased properties for the victim, Michaelson created false tenant identities to deceive the victim into further believing that she had arranged for the properties to be rented. Michaelson then sent rent checks to the victim, pretending to be the false tenants. The victim did not know that he was not the true owner of the properties. In yet another instance, after facilitating a real sale to a victim, Michaelson transferred ownership back to the bank, without the victim’s knowledge, and filed a fraudulent warranty deed with forged signatures in the county clerk’s office.
Michaelson stole over $1 million from her victims through her real estate scheme.
Carol Michaelson, 56, of Dawsonville, Georgia, was previously charged with forgery, theft by conversion, and false statements in Dawson County for defrauding real estate clients. As a result, she lost her real estate license in 2014. Even after surrendering her license, Michaelson continued to act as an unlicensed real estate agent and engage in fraudulent real estate transactions. Sentencing has not yet been scheduled.
The U.S. Secret Service, the Dawson County Sheriff’s Office, and the Enotah Judicial Circuit District Attorney’s Office are investigating this case.
Assistant U.S. Attorney Stephen H. McClain, Chief of the Complex Frauds Section, is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Corpus jury convicts Houston men for smuggling alien in waterwayRead the Press Release
CORPUS CHRISTI, Texas – A federal jury has returned guilty verdicts against two Houston men for knowingly and intentionally conspiring to unlawfully transport an undocumented alien, announced U.S. Attorney Ryan K. Patrick.
The jury deliberated for approximately 90 minutes before convicting Reuben Stafford, 47, and Reginald Lewis, 31, following a three-day trial.
The jury heard that at approximately 9:15 a.m. on May 29, authorities at the Javier Vega Border Patrol (BP) Checkpoint in Sartia observed a truck hauling an empty boat trailer. Lewis was driving. At primary inspection, he provided several inconsistent stories about his travel plans and displayed signs of nervousness.
Testimony revealed that authorities suspected he was smuggling contraband through the inter-coastal waterway and followed Lewis to the Port Aransas boat docks. There, they observed Stafford arrive at the dock in a boat along with an undocumented alien.
Both men, along with the alien attempted to flee the Corpus Christi area. However, law enforcement quickly arrested them at the docks.
The jury heard a confession Stafford had made, but the defense attempted to convince the jury that authorities coached Stafford on what to say. They further tried to claim the men had no idea they were transporting an undocumented alien.
The jury did not believe those claims and found them guilty as charged.
U.S. District Judge David S. Morales presided over the trial and set sentencing for March 13, 2020. At that time, each man faces up to 10 years imprisonment and a maximum $250,000 possible fine. Both have been and will remain in custody pending that hearing.
BP conducted the investigation. Assistant U.S. Attorney Neel Kapur is prosecuting the case.
Convicted Murderer Sentenced to 10 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
LITTLE ROCK— A convicted murderer has been sentenced to 10 years in federal prison for being a felon in possession of a firearm. Today, United States Chief District Judge D.P. Marshall, Jr., sentenced Patrick Johnson, 22, of Little Rock, to 120 months’ imprisonment. Ten years is the statutory maximum penalty for being a felon in possession of a firearm.
Cody Hiland, the United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced today’s sentence. The Court ordered that the sentence run consecutive to Johnson’s anticipated revocations in multiple pending state court cases and his pending Pulaski County Circuit Court cases for murder in the second degree and unlawful discharge of a firearm.
Johnson, a gang member, previously pleaded guilty before Judge Marshall to possession of a stolen rifle. The federal conviction stems from a March 19, 2018, arrest, when Little Rock Police Department Violent Crime Apprehension Team conducted a traffic stop. Johnson, who was a suspect in multiple violent crimes, was in the vehicle. The rifle was in plain view in a backpack Johnson was seen carrying prior to getting into the vehicle. Officers also located suspected crack cocaine in the vehicle.
On March 12, 2018, Johnson was involved in a shooting near Wright Avenue and Battery Street, where he and others fired shots at two individuals. He pleaded guilty to two counts of unlawful discharge of a firearm. Only hours later, on March 13, 2018, Johnson was involved in a shooting near 26th Street and Cross Street, where the defendant and others were responsible for firing shots at an occupied vehicle. Two individuals were shot, one of whom died, and Johnson pleaded guilty to murder in the second degree. Analysis by the Arkansas State Crime Lab linked the rifle found during the March 19 traffic stop to the March 13 murder.
“Removing violent criminals from our communities is a top priority for our office, and today’s ten year sentence sends a message that we will not tolerate gun violence,” said U.S. Attorney Hiland. “Prosecuting violent criminals is critical to keeping our communities safe. We remain committed to working with our state and local partners to fulfill our promise that gun crime by violent criminals will lead to federal time—time with no opportunity for parole.”
The United States requested that the sentence run consecutively because the firearm was connected to multiple shooting incidents, including a murder. The United States also based the request on Johnson’s criminal history, which includes the convictions for murder in the second degree, unlawful discharge of a firearm, commercial burglary, theft, and continued criminal conduct while incarcerated.
The investigation was conducted by the FBI GETROCK Task Force and the Little Rock Police Department.
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This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
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@EDARNEWS
Do not reply to this message. If you have questions, please use the contacts in the message or call the U.S. Attorney’s Office at 501-340-2600.
Convicted Felon in Austin Faces Federal Ammunition Possession ChargeRead the Press Release
In Austin this afternoon, federal authorities filed a criminal complaint charging 33–year-old Timothy Maurice Selmon with being a convicted felon in possession of ammunition, announced U.S. Attorney John F. Bash, Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division, Austin Police Chief Brian Manley and Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosive’s (ATF) Houston Division.
According to the criminal complaint, Austin Police (APD) officers earlier today responded to a local retail outlet after receiving a report of a man in the store restroom who was in possession of a pipe and several shotgun shells and appeared to be attempting to construct a pipe bomb. When store security officers confronted Selmon, he left the store and proceeded to a nearby bus stop. APD officers found Selmon on a transit bus at the bus stop. While taking him into custody, APD officers discovered two PVC pipes capped with duct tape underneath the seat occupied by the defendant and numerous shotgun shells inside his jacket pocket. An APD Explosive Ordinance Disposal unit conducting a protective sweep of the store bathroom recovered a single matching shotgun shell and a butane bottle inside the bathroom stall.
This investigation continues. No one was injured during this incident. Individuals inside both the bus and the store were evacuated as a precaution.
According to the criminal complaint, Selmon’s criminal history includes two felony burglary convictions—one in August 2014, and one in October 2008—and one felony conviction for manufacture/delivery of a controlled substance in October 2008.
Upon conviction of the felon-in-possession charge, Selmon faces up to ten years in federal prison. He remains in custody. Selmon’s initial appearance in Austin before U.S. Magistrate Judge Susan Hightower is expected to occur tomorrow.
The FBI’s Joint Terrorism Task Force (JTTF), Austin Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) are investigating this case. Assistant U.S. Attorney Karthik Srinivasan and Michael Galdo are prosecuting this case on behalf of the government.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is innocent until proven guilty in a court of law.
Connecticut Mother Convicted of Traveling to Pennsylvania to Attempt to Have Sex with a 14 Year-old BoyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Sarah Norton, 38, of Jewett City, Connecticut was convicted at trial of attempted enticement of a minor and traveling to engage in illicit sexual conduct with a minor arising from her interactions with a 14 year-old boy.
The defendant, a married mother of three, met the victim while “gaming” online. She then used online and cell phone communications to attempt to seduce the victim into engaging in sexually explicit contact. Norton traveled from her home in Connecticut to Pennsylvania to meet with the boy for sex in a hotel room that she had rented, near where the child lived. Norton’s plan was foiled after the victim’s father became suspicious of the messages the victim had on his cell phone and interrupted the plan.
“Those who sexually target children are among the most depraved in our society,” said U.S. Attorney McSwain. “This is true no matter the gender of the offender or the excuses served up for this type of behavior. We will aggressively pursue and prosecute anyone who targets children for their own sexual gratification.”
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 United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.
The defendant faces a maximum possible sentence of lifetime incarceration, a mandatory minimum ten years imprisonment, a mandatory minimum five years supervised release up to lifetime supervised release, a $500,000 fine, a $10,200 in special assessments.
The case was investigated by the Upper Macungie Police Department and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
Coin Broker Sentenced to 54 Months for Defrauding Elderly ClientsRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jamie Smith, 42, Baldwin, Wisconsin, was sentenced yesterday by U.S. District Judge William Conley to 54 months in federal prison for mail fraud. Smith pleaded guilty to this charge on September 17, 2019.
Smith owned and operated two precious metals brokerages houses in Hudson, Wisconsin from 2014 to 2017, called American Platinum Gold & Silver, Inc., and American Independent Gold & Silver, Inc. These entities were engaged in the business of evaluating, buying, selling and trading coins and precious metals. Through his work at these brokerage houses, Smith contacted individuals concerning their coins and precious metals, and offered to appraise the coins, buy them, trade them, or sell them for the client.
Smith defrauded his clients by misappropriating their money and property. He did this by not honoring his coin transaction agreements with his clients, and failing to tell them he was using their money and property for his own uses and personal expenses.
As part of the fraud scheme, Smith liquidated his clients’ coins and used the funds for purposes other than what he promised. When clients demanded their money or return of their coins, Smith lied and told them that their coins and/or money were in the mail, when in fact, they were not. Smith also took in money from other clients for the purchase of coins, but never shipped the coins. Finally, Smith took in coins from additional clients for purposes of providing an appraisal of the coins, but never returned the coins to them, or paid them for the coins.
When clients began complaining and threatening to sue Smith, he falsely told his clients that he needed two years to pay everybody what he owed them because he suffered a financial loss due to, among other things, an “employee embezzlement of company funds.” In exchange for the time extension, Smith promised he would pay interest, penalties, and any taxes caused by the extension.
FBI agents traced the client funds that went into Smith’s main business bank accounts, which showed that Smith used client monies to pay for charges at fast food restaurants, grocery stores, liquor stores, bars, hotels, ATM cash withdrawals, and his home monthly mortgage and utilities. FBI agents identified 46 victims in this case, and the loss amount was $1,240,299. Many of Smith’s victims were elderly and the stolen coins represented their retirement nest eggs.
Smith previously ran his brokerage houses in Minnesota from 2010 to 2012 with Robert Gundy and Jay Flynn. Gundy and Flynn pleaded guilty to mail fraud in 2014 in Minnesota. Both were sentenced in 2015, with Flynn receiving a prison sentence of 52 months and Gundy receiving a 41-month prison sentence. While Smith was not charged in the Minnesota mail fraud case, he did enter into a civil settlement agreement with the Minnesota Attorney General’s Office and agreed that he and his company would be permanently enjoined in Minnesota from engaging in misleading and deceptive business practices pertaining to the purchase, sale, or appraisal of coins and precious metals for clients.
The charges against Smith were the result of an investigation conducted by the Federal Bureau of Investigation, St. Croix County Sheriff’s Office, River Falls Police Department, and the Minnesota Department of Commerce. The prosecution of the case has been handled by Assistant U.S. Attorney Daniel J. Graber.
Clinton Woman Sentenced to 10 Months in Prison Under Project Guardian for Attempting to Illegally Purchase a FirearmRead the Press Release
Jackson, Miss. – Yolunda Shaunderes Walker, 36, of Clinton, was sentenced today by Senior U.S. District Judge Tom Lee to 10 months in prison, followed by three years of supervised release, for attempting to purchase a firearm by making false statements on a federal background check form, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Walker was also ordered to pay a $1500 fine.
On June 6, 2019, Walker attempted to purchase a 9mm pistol from a pawn shop in Jackson by completing ATF Form 4473, a federal background check form required for all firearms purchases from firearms dealers. On the form, Walker falsely stated that she was not a habitual user of controlled substances. In, 2017, Walker was charged with possession of marijuana after calling the Clinton Police Department to report that she was holding burglars at gunpoint in her home. Officers investigated and determined there were no burglars in the home and no evidence that a burglary had taken place. The officers found marijuana and a firearm in the home. There were also bullet holes inside the home where it was apparent that Walker had discharged her firearm several times inside the residence. Walker was interviewed by an officer and admitted that she smoke marijuana almost daily. As a habitual user of controlled substances, Walker is legally prohibited from purchasing a firearm.
Walker pled guilty before Judge Lee on September 12, 2019 to making false statements on a federal background check form.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Charles W. Kirkham.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please click here.
Clinton Man Sentenced to 2 Years in Prison Under Project EJECT for Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – Jeremie Markell Torrey, 29, of Clinton, was sentenced today by Senior U.S. District Court Judge Thomas S. Lee to 24 months in federal prison, followed by 3 years of supervised release, for being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation. Torrey was also ordered to pay a $1500.00 fine.
On June 1, 2018, Torrey was a passenger in a vehicle that was stopped by Jackson Police Department officers. When the officer spoke with the driver, he smelled marijuana in the vehicle. Marijuana was found in the vehicle, along with baggies for packaging and a digital scale. Torrey was sitting in the back seat of the car, and a Glock pistol was found on the rear passenger armrest just next to where he was sitting. A Smith & Wesson pistol was also found under the front passenger side seat where another passenger, Clifton Horton, was sitting.
During interviews by the FBI, Torrey admitted to possessing the Glock pistol and Horton admitted to possessing the Smith & Wesson pistol. Both Torrey and Horton are convicted felons and it is illegal for them to possess firearms. Torrey pled guilty before Judge Lee on September 12, 2019, to being a convicted felon in possession of a firearm. Horton is being prosecuted in a separate criminal case by the U.S. Attorney’s Office.
The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Charles W. Kirkham.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions 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.
Cecil County Pimp Indicted on Federal Charges Including Sex Trafficking of a Child, Production of Child Pornography, and Using a Website to Promote His Prostitution BusinessRead the Press Release
Baltimore, Maryland – A federal grand jury has returned a superseding indictment charging Xavier Lee, a/k/a “X,” age 40, of Elkton, Maryland, on federal charges of using a website to promote and conduct his prostitution business, sex trafficking of a minor, production of child pornography, and interstate transportation for prostitution. The superseding indictment was returned on December 11, 2019, and added the charges for sex trafficking of a minor, production of child pornography, and interstate transportation for prosecution.
The superseding indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief Matthew J. Donnelly of the Elkton Police Department; and Interim Cecil County State’s Attorney James Dellmyer.
According to the five-count superseding indictment, from 2013 through March 14, 2019, Lee operated an illicit prostitution business for financial gain, including operating a website to advertise and promote the business. The indictment alleges that the website restricted its full content to viewers who logged-in as members and that Lee maintained control over the website’s membership. Lee allegedly required prospective members to send Lee a picture of themselves that included in the picture their identification, such as a driver’s license. Members were provided by Lee or at his direction a log in and password. According to the indictment, website members could then view the “profiles” of the females whom Lee was prostituting, which included photographs, descriptions, and fictitious names. The website also listed the cost of prostitution appointments, described services that were available, and allowed members to post comments. The indictment alleges that Lee’s prostitution business was primarily operated at hotels in Elkton, Maryland, during weekdays, from Monday through Friday, with Lee typically driving a number of females whom he was prostituting to a local hotel in Elkton for prostitution appointments with paying customers. Customers would contact Lee to schedule a prostitution appointment, often calling Lee on his cell phone. To facilitate these prostitution appointments, Lee allegedly rented rooms at a local Elkton hotel.
Further, the superseding indictment alleges that in April 2013 Lee trafficked a minor female for commercial sex acts, from which he financially benefitted. According to the superseding indictment, in September 2013 and May 2014, Lee produced and appeared in two videos documenting the sexual abuse of another minor female victim, who was 15 and 16 years old at the time of the abuse.
If convicted, Lee faces a maximum sentence of five years in federal prison for using a website to promote and conduct his prostitution business; a mandatory minimum of 10 years and up to life in federal prison for sex trafficking of a minor; a mandatory minimum of 15 years and up to 30 years in federal prison for each of two counts of production of child pornography; and a maximum of 10 years in federal prison for interstate transportation for prostitution. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. No court appearance is currently scheduled for Lee.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI, the Maryland State Police, the Elkton Police Department, and the Cecil County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Ayn B. Ducao and Daniel A. Loveland, Jr., who are prosecuting the case.
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California Man Indicted on Fentanyl Distribution ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on December 10, 2019, a federal grand jury returned an indictment against Richard Garner (age: 55) of Rancho Cucamonga, California.
On November 20, 2019, Garner was arrested in Riverside, California based on a criminal complaint filed in the Eastern District of Wisconsin. The criminal complaint alleged, among other things, on July 31, 2019, Garner had a suspected drug-laden package mailed from Redondo Beach, California to a residence in Milwaukee, Wisconsin. The U.S. Postal Inspection Service intercepted the suspicious package, which was later confirmed to contain approximately a kilogram (2.2 pounds) of N-Phenyl-N-[1-(2-phenylethyl)-4-piperidinyl] propanamide, commonly known as fentanyl.
The indictment returned against Garner alleges he conspired to possess with intent to distribute at least 400 grams of fentanyl, contrary to Title 21, United States Code, Section 846; and that he possessed with the intent to distribute at least 400 grams of fentanyl, contrary to Title 21, United States Code, Sections 841(a)(1) and (b)(1)(A)(vi). If convicted of the charges alleged, Garner faces a mandatory ten year term of imprisonment and up to a lifetime term of imprisonment.
Garner is pending arraignment in Milwaukee federal court.
This case was investigated by the North Central High Intensity Drug Trafficking Area (HIDTA), the Drug Enforcement Administration (DEA), and the U.S. Postal Inspection Service (USPIS), and will be prosecuted by Assistant United States Attorney Robert J. Brady, Jr.
An indictment and criminal complaint contain only charges and are not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
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Business manager sentenced to prison for crimes involving more than $2 million in Department of Defense contractsRead the Press Release
COLUMBUS, Ohio – A California man was sentenced here today for crimes involving more than $2 million in Department of Defense contracts.
Timothy M. Kelly, 56, of Palos Verdes Estates, Calif., was sentenced to 30 months in prison for conspiring to commit wire fraud and for money laundering. Kelly served as the office manager for Emerson Company, which was owned by Daniel Emerson Norton, 52, formerly of Arlington, Va.
Norton was sentenced on Nov. 18 to 96 months in prison.
Norton and Kelly fraudulently secured approximately $2.2 million in contracts to provide critical parts to the U.S. Department of Defense, which they then filled with defective parts made in China, in violation of the Buy American Act. In total, Norton and Kelly supplied parts that did not meet military requirements for at least 130 contracts.
“The defendants’ actions put our military at risk, which is unfathomable,” IRS Criminal Investigation SAC Bryant Jackson said. “IRS Criminal Investigation followed the flow of money in this case in order to uncover the fraud, and we are proud to work with our law enforcement and military partners to investigate financial transactions that impact our country and our military.”
According to court documents, the Department of Defense (DOD) barred Emerson Company from doing business with the U.S. Government in 2011.
Between 2011 and 2013, Norton continued to recruit people who either already had companies or were willing to start companies to do his bidding on solicitations and contract with the military to provide parts for the U.S. military. When one of the companies was awarded a purchase order, Norton directed the company to send the purchase order to Emerson Company, which would buy and ship the part directly to DoD. Kelly would instruct the company to invoice DoD for the part.
Norton bought the parts from manufacturers in China, even though the contracts required a large number of the parts to be made in the United States.
Until 2012, Kelly primarily conducted spot inspections of parts upon their arrival. In late 2012, Norton took over the responsibility of inspecting a sample part before accepting it from the manufacturer and shipping it to the DoD.
The parts Norton and Kelly provided had dimensional defects, material substitutions, incorrect or missing markings, incorrect finishes, improper shapes or styles, mislabeled packaging or poor workmanship and thus failed to conform to the contract requirements. In some cases, contracts called for precise OEM parts and instead the defendants made defective imitation parts overseas.
They involved a variety of parts used on military weapon systems including aircraft, vessels, vehicles and Nuclear Reactor programs. Many of the parts were considered Critical Application items, which are essential to weapon system performance or operation, or the preservation of life or safety of operating personnel, as determined by military services.
As part of each man’s sentence, Norton and Kelley were ordered to pay $2.38 million in restitution, and forfeit more than $333,000 in the bank account in the name of Emerson Manufacturing Inc. and a $725,000 residence held by Emerson Manufacturing Company in Kihei, Hawaii.
Four other defendants were sentenced this year in a separate scheme to defraud the Department of Defense.
Janay McDonald Ruiz founded JanTech Inc. in 2012 and SoCal Components Place in 2013 with little or no experience, training or education in aircraft, vessel, weapons systems or maintenance. Ruiz’s sister, Raven McDonald, and friends Candace Villar and Niena Johnson, helped operate the companies and their five affiliate companies.
The defendants created and operated four additional companies under different aliases using the names and identities of others after their original companies were debarred in 2013. In one instance, Ruiz used the name and identity of an elderly victim who suffers from dementia. Ruiz opened bank accounts, credit cards and a company to continue to defraud the government.
In sum, the conspiring females created six different companies and entered into more than 1,000 contracts with the government valued more than $2.4 million. The defendants delivered noncompliant, incorrect, used, surplus, refurbished, aftermarket and antiquated parts to the government that were often obtained from unauthorized vendors selling items on the grey and black market. Many of the parts were identified as "Critical Safety Items." Ruiz used her ill-gotten gains to pay for an elaborate wedding in Beverly Hills that included a multi-tiered cake suspended from the ceiling, concert tickets, a Mercedes Benz and designer clothes and shoes.
Each of the four defendants pleaded guilty and has been sentenced to serve time in prison (ranging from 18 to 46 months in prison) and ordered to jointly pay $1.16 million in restitution.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Leigh-Alistair Barzey, Special Agent in Charge, U.S. Department of Defense, Defense Criminal Investigative Services (DCIS), Central Field Office; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation announced the sentence imposed today by U.S. District Judge Michael H. Watson. Assistant United States Attorneys Jessica W. Knight and J. Michael Marous represented the United States in this case.
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