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Thursday 10 October 2019
Guatemalan Man Guilty of Heroin TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Cesar Moscoso-Sagastume, age 39, a citizen of Guatemala, pleaded guilty on October 8, 2019, before Senior U.S. District Court Judge A. Richard Caputo, to participating in a conspiracy that transported more than a kilogram of heroin that was seized by investigators on Interstate 80 near Hazleton in February 2018.
According to United States Attorney David J. Freed, Moscoso-Sagastume admitted to conspiring with others to distribute and possess with intent to distribute between three and ten kilograms of heroin (which is equivalent to between 120,000 and 400,000 retail bags of heroin) between November 2017 and February 2018. Investigators seized approximately five kilograms of heroin during the investigation.
Judge Caputo ordered a presentence investigation to be completed. Sentencing is scheduled for April 30, 2020.
The charge against Moscoso-Sagastume resulted from an investigation by the Drug Enforcement Administration (DEA) and the Pennsylvania State Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The maximum penalty under federal law is life imprisonment. The charge also carries a mandatory minimum penalty of 10 years in prison. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Grand Jury Returns Three IndictmentsRead the Press Release
MADISON, WIS. – A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Fort Atkinson Man Charged With Distributing Child Pornography
Kyle A. Riggs, 33, Fort Atkinson, Wisconsin, is charged with two counts of distributing a visual depiction of a minor engaging in sexually explicit conduct. The indictment alleges that Riggs used Kik, a mobile app, to distribute two child pornography videos on October 5, 2019.
If convicted, Riggs faces a mandatory minimum penalty of five years and a maximum of 20 years in federal prison on each count. The charges against him are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation, the Eau Claire and Fort Atkinson Police Departments, the Jefferson and Shawano County Sheriffs’ Offices, and the Wisconsin Department of Natural Resources. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
Madison Man Charged With Using Unauthorized Access Devices to Commit Wire Fraud
Ahmad Kanan, 48, Madison, Wisconsin, is charged with using unauthorized access devices with the intent to defraud. The first count of the indictment charges him with using the account number and routing number of a bank account of a foreign embassy from July 21 to December 21, 2017, to obtain things of value totaling approximately $191,836. The second count charges him with using the account number and routing number of a bank account of a foreign embassy on December 21, 2017, to attempt to obtain things of value totaling approximately $35,370.
If convicted, Kanan faces a maximum penalty of 10 years in federal prison on each count. The charges against him are the result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Wisconsin Department of Justice Division of Criminal Investigation, and the Wisconsin Department of Revenue, Office of Criminal Investigation. Assistant U.S. Attorneys Meredith Duchemin and Zachary Corey are handling the prosecution.
Illinois Man Charged With Drug Crime
Enricki Gomez, 30, Rockford, Illinois, is charged with possessing 500 grams or more of cocaine with the intent to distribute. The indictment alleges that he possessed the cocaine on October 7, 2019.
If convicted, Gomez faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison. The charge against him is the result of an investigation by the Drug Enforcement Administration. Assistant U.S. Attorney Aaron Wegner is handling the prosecution.
Goldsboro Man Convicted for Distribution of Fentanyl and HeroinRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that DONTE TERRILL KORNEGAY, A/K/A “BOSTON,” was found guilty by a jury sitting in New Bern on Friday, October 4, 2019, for Conspiracy to Distribute Heroin and Fentanyl, and Distribution of Fentanyl.
The case involved the overdose death by fentanyl of a twenty-one year old victim in Sneads Ferry, North Carolina. Trial testimony and text messages and phone toll records recovered from witnesses’ cell phones established that on the night of April 6, 2016, the victim purchased fentanyl from a coconspirator, at the direction of KORNEGAY. In addition, the trial testimony revealed that prior to that night, KORNEGAY had been distributing heroin in the Sneads Ferry area since 2015.
At sentencing, which is scheduled for the February, 2020 term of court, kornegay faces a maximum term of imprisonment of 20 years on each count, a $1,000,000 fine, and a term of supervised release following any term of imprisonment.
Mr. Higdon commented: “The United States Justice Department and the United States Attorney’s Office are aggressively pursuing distributors of heroin and fentanyl. These drugs pose a serious danger to the people of Eastern North Carolina and we intend to remove that danger as part of our effort to “Take Back North Carolina” from the drug traffickers and violent criminals.”
The Onslow County Sheriff’s Office, with assistance from the Drug Enforcement Administration’s Wilmington Resident Office, conducted the investigation in this matter. Assistant United States Attorneys Ethan Ontjes and Toby Lathan represented the government.
GirlsDoPorn Owners and Employees Charged in Sex Trafficking ConspiracyRead the Press Release
Assistant U. S. Attorneys Joseph Green (619) 546-6955 and Sabrina Feve (619) 546-6786
SAN DIEGO – The owners and two employees of the popular adult websites GirlsDoPorn and GirlsDoToys were charged in federal court today with sex trafficking crimes in connection with a scheme to deceive and coerce young women to appear in sex videos.
According to a complaint, owners Michael James Pratt and Matthew Isaac Wolfe along with adult film performer and producer Ruben Andre Garcia and administrative assistant Valorie Moser used deception and false promises to lure the victims, who had responded to ads for modeling jobs that would supposedly pay $5,000. Eventually the women were told the job was really for adult films.
To persuade the women to participate, the defendants convinced them they could remain anonymous and that their videos would not be posted on the internet. In reality, the entire purpose was to post the videos on the internet. According to financial records, the websites have generated more than $17 million in revenue.
According to the complaint, the circumstances were not at all what was promised. Some of the women were pressured into signing documents without reviewing them and then threatened with legal action or outing if they failed to perform; some were not permitted to leave the shooting locations until the videos were made; family and friends and the general public eventually saw the videos online; some victims were harassed and ridiculed and estranged from their families as a result; and some were sexually assaulted and in at least one case raped. Some were forced to perform certain sex acts they had declined to do, or they would not be paid or allowed to leave.
Garcia was arrested on October 9; Wolfe was taken into custody Tuesday by immigration officials and transferred to federal criminal custody. They were arraigned this afternoon. Moser’s arraignment is scheduled for tomorrow before U.S. Magistrate Judge Linda Lopez. Pratt is a fugitive.
On October 9 at approximately 7:00 p.m., FBI agents executed a search warrant at an office located in the Spreckels Theatre Building located at 121 W. Broadway in San Diego. According to the search warrant, the office was used by members of the conspiracy to operate the GirlsDoPorn website.
Any additional victims of the alleged crime are encouraged to call the San Diego FBI at 858-320-1800.
DEFENDANTS Case Number 19cr19mj4453
Michael James Pratt Age: 36 Unknown
Matthew Isaac Wolfe Age 37 San Diego,
Ruben Andre Garcia Age: 31 San Diego,
Valorie Moser Age: 37 San Diego,
SUMMARY OF CHARGES
Counts 1-3 (charging Pratt, Wolfe and Garcia)
Sex Trafficking by Force, Fraud and Coercion, 18 U.S.C. § 1591(a) and (b)(1)
Minimum penalty: Fifteen years in prison; Maximum penalty: life in custody, $250,000 fine.
Count 4 (charging all defendants)
Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion, 18 U.S.C. § 1594
Maximum Penalty: Life in prison, $250,000 fine.
INVESTIGATING AGENCY
FBI
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Gainesville man sentenced for defrauding his former brokerage firm clients with “biofuel” schemeRead the Press Release
ATLANTA – Winston Wade Turner, a former licensed broker for nationwide financial services firms, has been sentenced for mail fraud.
“Turner pitched a bogus biofuel scheme to former clients he met through reputable brokerage firms where he previously worked,” said U.S. Attorney Byung J. “BJay” Pak. “He lured his victims into signing ‘corporate notes’ with promises of immediate returns on a profitable biofuel producer which turned out to be only a shell company of his own invention. This case is a reminder that if it seems too good to be true, it usually is.”
“Retirees simply looking for safe and secure returns on their hard earned investments should not have to worry about someone like Turner, who preyed on them for his own greed,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Those individuals who use false promises to capitalize financially at the expense of unsuspecting investors should be aware that the FBI will vigorously pursue them for prosecution.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: beginning in July 2015, Turner represented to investors that he was a broker for “North American BioFuel,” a purported biofuel producer based in Bradenton, Florida. Turner encouraged his victims, former clients from his previous employment at two financial services firms, to move funds he had invested for them, or in some cases, new funds, in North American BioFuel. Turner promised them their ‘loans’ would generate a stream of monthly interest payments and return of the full principal at the end of investment periods ranging from one to three years.
Unknown to his victims, Turner had been fired, lost his broker’s license and been banned from the securities industry. Turner represented the company as specializing in and already producing biofuel, at a time when it was in fact only a shell company consisting of a rented mailbox address and articles of incorporation in Florida. Turner typically made a fraction of the promised interest payments, did not return the principal, and ceased contact with the victims. Turner was found to have bilked investors in the fictitious biofuel firm of $877,188.
Winston Wade Turner, 50, of Jefferson, Georgia, was sentenced by U.S. District Court Judge Richard W. Story to two years, nine months in prison to be followed by three years of supervised release, and was ordered to pay $877,188 in restitution. He was also ordered to forfeit $160,149.52. Turner pleaded guilty to mail fraud on June 5, 2019.
This Federal Bureau of Investigation investigated this case.
Assistant U.S. Attorney Brian Pearce 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.
Framingham Man Charged with Producing False Identification DocumentsRead the Press Release
BOSTON – A Framingham man was indicted today in federal court in Boston with producing a false identification document, aiding and abetting and Social Security card fraud.
Cristiano Ribeiro De Moura, 32, was indicted on one count of producing an identification document, authentication feature, or false identification document; aiding and abetting; and one count of Social Security card fraud.
According to the charging documents, Ribeiro De Moura sold four counterfeit Lawful Permanent Resident cards and four counterfeit Social Security cards in July and August 2019. Ribeiro De Moura charged $350 for a set of fake documents, which included one Lawful Permanent Resident card and one Social Security card. The buyers provided their name and date of birth, and Ribeiro De Moura provided the Social Security number.
The charge of producing a false identification document provides for a sentence of up to 15 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of Social Security card fraud provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Boston Field Office; and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Four Health Care Professionals Indicted for Stealing Controlled Substance Medications for Their Own Personal UseRead the Press Release
St. Louis, Missouri –Four licensed health care professionals were indicted today by a federal grand jury for receipt of controlled substance medications by deceit, fraud and misrepresentation. They stole Schedule II controlled substances from the locked medication cabinets where they worked and falsified patient and/or pharmacy records to conceal the theft. The following individuals were indicted:
Alyssa Wedepohl, 29, of Hillsboro, Missouri, was a registered nurse at Mercy Hospital South. Between October 2018 and May 2019, Wedepohl stole Hydrocodone, Hydromorphone, Oxycodone, Morphine, Dronabinol, Lorazepam, and Tramadol.
Jessica Powell, 32, of St. Louis County, Missouri, an employee of Davita Hospital Services, was a registered nurse in the dialysis unit at DePaul Hospital in Bridgeton and SSM Health Lake St. Louis Hospital. Between February 13, 2017 and February 14, 2018, Powell stole Hydromorphone and Oxycodone-Acetaminophen.
Jacob Gottreu, 26, of St. Charles, Missouri, was a licensed paramedic and worked in the ER of SSM Health DePaul Hospital. Between May 1, 2019 and June 12, 2019, Gottreu stole Fentanyl.
Rebekkah Johnson, 27, of St. Louis, Missouri, was a pharmacist and worked the night shift at the CVS in Clayton. During 2019, Johnson stole Methylphyphenidate ER, Vyvanse, and Dextroamphetamine-amphetamine ER.
If convicted, each face a maximum penalty of four years in prison and a $250,000 fine. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Drug Enforcement Administration is investigating these cases. Assistant United States Attorney Dorothy McMurtry is handling this case.
Charges set forth in the Indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Fort Wayne Man Sentenced to 60 Months in PrisonRead the Press Release
FORT WAYNE – Billy Harris, age 38, of Fort Wayne, Indiana was sentenced before U.S. District Court Judge Holly A. Brady upon his plea of guilty to being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Harris was sentenced to 60 months in prison followed by 2 years of supervised release.
According to documents in this case, in July of 2017, Mr. Harris possessed a firearm after twice being convicted of felony offenses. In 2012, Harris was convicted of resisting law enforcement and in 2015, he was convicted of invasion of privacy along with committing domestic battery in presence of a child less than 16 years of age. Both these convictions were in Allen Superior Court, Allen County, Indiana.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Indiana State Police. The case was handled by Assistant United States Attorney Lesley Miller-Lowery
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Former Montgomery County Music Teacher Facing Federal Indictment for Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – A federal grand jury today returned an indictment charging Charles Victor Kopfstein-Penk, age 74, of Bethesda, Maryland, with possession of child pornography. Kopfstein-Penk, a music teacher who gave lessons out of his home, was arrested earlier this year on related state charges.
The federal indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Montgomery County State’s Attorney John McCarthy.
According to the indictment, Kopfstein-Penk possessed images depicting the sexual abuse of children, including images of child pornography involving a prepubescent minor. The indictment also seeks the forfeiture of any property traceable to profits from the offense or used to commit the offense, including a desk top computer and five external hard drives.
Anyone who may have information about possible victims or details related to the investigation of Charles Victor Kopfstein-Penk is asked to contact the Maryland Center for Missing and Exploited Children at 1-800-637-5437.
If convicted, Kopfstein-Penk faces a maximum sentence of 20 years in federal prison for possession of child pornography. Kopfstein-Penk had an initial appearance in U.S. District Court in Greenbelt, and was released under the supervision of U.S. Pretrial Services.
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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended HSI, the Maryland State Police Internet Crimes Against Children Task Force, and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Rajeev Raghavan and Kristi N. O’Malley, who are prosecuting the federal case.
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Former Jefferson Parish Justice of the Peace Sentenced to Three Years in Federal Prison for Corruption and Financial FraudRead the Press Release
Shreveport, New Orleans, Lafayette, La. – Today, Patrick Hale Dejean, former Justice of the Peace for the Second Justice Court of Jefferson Parish, was sentenced by U.S. District Judge Mary Ann Vial Lemmon to three years in federal prison for committing 13 counts of mail fraud and three counts of making false statements to a bank, announced United States Attorney for the Western District of Louisiana, David C. Joseph. Judge Lemmon also ordered Dejean to serve a three-year term of supervised release following confinement and to pay $73,046.49 in restitution. On February 27, 2019, after a 7-day trial, Patrick Dejean was found guilty by a federal jury in New Orleans for using his position to illegally obtain wage garnishments and loans.
During Dejean’s trial, the government proved that from May 2009 through August 2016, Dejean diverted money from a Second Justice Court bank account for his personal use and made false statements to a bank to improperly borrow money on behalf of the court, which he later spent on himself.
At trial, jurors heard evidence that Dejean systematically abused the Second Justice Court’s garnishment procedures to defraud creditors and debtors with business before the court. As a Justice of the Peace, Dejean judged small claims civil cases for creditors seeking payment from customers who were behind in their payments. If a judgment was obtained by the creditor, Dejean issued garnishment judgments instructing employers of the debtors to send wage garnishments directly to the Second Justice Court.
Evidence showed that Dejean improperly used this process to enrich himself by failing to forward the proper amounts of the wage garnishments collected to the creditors and instead spent the money on himself, primarily to gamble at local casinos. In order to facilitate his scheme, Dejean would continue to garnish the wages on unsuspecting debtors after they had already paid the amount owed under the judgment.
The jury also found that Dejean lied on bank applications in 2012 and 2013 to influence First Bank and Trust to lend over $50,000 to the Second Justice Court. Dejean applied for bank loans on behalf of the court despite knowing that the court was prohibited by Louisiana law from borrowing money. Rather than using the loan proceeds for expenses related to the court, Dejean gambled with the money and otherwise used it for personal expenses.
“The sentence today holds the defendant responsible for the crimes he committed as a Louisiana elected official,” said U.S. Attorney Joseph. “In this case, Justice of the Peace Dejean targeted some of the most vulnerable members of our society and stole their hard earned wages, defrauded banks, and abused the trust placed in him by the public. This prison sentence should serve as a warning to other Louisiana public officials who may intend to use elected office to line their own pockets. Public corruption will not be tolerated in Louisiana.”
“The sentence handed down today should send a message to all public officials who engage in illegal and corrupt practices that they will be held accountable for their conduct,” said FBI Special Agent in Charge of the New Orleans Field Division Bryan A. Vorndran. “Patrick Dejean misused his office and a position of trust for his own personal benefit. The FBI New Orleans Field Office stands with our federal, state, and local partners and prosecutors to declare our commitment to vigorously investigate and prosecute corruption at all levels.”
The case was prosecuted by the U.S. Attorney’s Office for the Western District of Louisiana because the U.S. Attorney’s Office for the Eastern District of Louisiana was recused from the case.
The FBI, Louisiana Legislative Auditor, Metropolitan Crime Commission, Jefferson Parish Sheriff’s Office, and Jefferson Parish Inspector General’s Office conducted the investigation. U.S. Attorney David C. Joseph and Assistant U.S. Attorneys John Luke Walker and David J. Ayo prosecuted the case.
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Former Dental Clinic Owner Sentenced for $1 Million Health Care, Payroll Tax FraudRead the Press Release
SPRINGFIELD, Mo. – A Marshfield, Missouri, woman has been sentenced in federal court for multiple fraud schemes totaling more than $1 million that involved Medicaid payments to her dental clinics, failing to pay over payroll taxes and collecting unemployment benefits she wasn’t entitled to receive.
Pamela M. Van Drie, 59, was sentenced by U.S. District Judge M. Douglas Harpool on Wednesday, Oct. 9, to four years and nine months in federal prison without parole. The court also ordered Van Drie to pay $1,139,794 in restitution.
Van Drie and her husband, Lorin G. Van Drie, 60, were convicted at trial on Feb. 20, 2019, of all 40 counts contained in a federal indictment.
Pamela and Lorin Van Drie were the owners of All About Smiles, LLC, a Springfield company that provided dental services at clinics in Springfield (until it closed in November 2015), Mountain Grove, Missouri (until it closed in October 2014), and Bolivar, Missouri (until it closed in March 2014). They also owned PL Family Management Company, LLC, which managed the staff for those clinics.
$885,748 Health Care Fraud Conspiracy
Pamela Van Drie participated in a conspiracy to commit health care fraud from Oct. 6, 2010, to Aug. 19, 2015. This conspiracy consisted of two fraud schemes. Pamela Van Drie and Dr. James R. Dye, a dentist at the clinics, conspired to fraudulently bill Medicaid for speech aid prosthetics they did not provide to Medicaid beneficiaries. They also conspired to bill Medicaid for dentures and other dental services for beneficiaries who were ineligible to receive such services because the services were not medically necessary.
In the first scheme, Pamela Van Drie and Dye purchased Ortho-Tain orthodontic appliances (designed to straighten teeth without braces) for approximately $50 each, provided them to Medicaid pediatric beneficiaries and billed each such appliance to Medicaid as a speech aid prosthesis for approximately $695. They knew the Ortho-Tain appliances should have been billed to Medicaid as orthodontic services; they also knew Medicaid did not cover orthodontic services unless the Medicaid program’s requirements were met and they received precertification, which required review by a dentist/orthodontist employed by Medicaid. They billed the Ortho-Tain appliances as speech aid prostheses in order to bypass the precertification requirement.
Between Oct. 6, 2010, and Aug. 19, 2015, Pamela Van Drie submitted and received payment for approximately 241 claims submitted for speech aid prostheses. On each claim, All About Smiles (or its predecessor company) was paid between $675 to $695, for an approximate total amount of $165,700.
In the second scheme, Pamela Van Drie and Dye arranged for All About Smiles to provide dentures and other dental services to adults who did not qualify for Medicaid reimbursement. They submitted claims to Medicaid for those dentures and other dental services, knowing that Medicaid’s requirements were not met. Pamela Van Drie, through All About Smiles, submitted and received $720,048 on numerous claims for dentures and other dental services that lacked the required written referral from a physician.
Dye pleaded guilty on Feb. 11, 2016, to health care fraud in a separate but related case. According to court documents, the Missouri Dental Board suspended Dye’s license, a suspension that arose from his substandard care for patients at the Van Dries’s clinics.
$194,751 Payroll Tax Fraud ConspiracyPamela and Lorin Van Drie participated in a conspiracy to defraud the government by failing to pay over to the IRS payroll taxes from Jan. 31, 2013, to Jan. 31, 2015. Although payroll taxes were withheld from the paychecks of employees at All About Smiles and PL Family Management Company, the Van Dries failed to pay over to the IRS approximately $194,751 in payroll taxes.
The Van Dries diverted a substantial amount of money from their businesses during this period. Rather than paying the payroll taxes due and owing, the Van Dries purchased and made payments on a 2013 Tracker boat and trailer, a recreational vehicle, multiple vehicles (including a 2010 Hummer and a 2009 Mercedes), several utility trailers, two golf carts, a motorcycle, expenses associated with two homes and family vacations in Florida, and a pulling truck called “Momma’s Money,” which Pamela Van Drie’s son used in pulling competitions throughout Missouri.
Additional Charges
In addition to these two criminal conspiracies, Pamela Van Drie was found guilty of eight counts of health care fraud related to fraudulent claims for speech aid prosetheses and 10 counts of health care fraud related to fraudulent claims for dentures and other dental services.
Pamela Van Drie also was found guilty of one count of theft of public money related to $3,520 in unemployment benefits that she was not entitled to receive while working full-time at All About Smiles. From June 2012 through the end of December 2012, Medicaid paid into Pamela and Lorin Van Drie’s business bank account three-quarters of a million dollars. Also during that time period, Pamela Van Drie took a weeklong vacation to a resort in Florida. Nonetheless, from June 2012 through January 2013, Pamela Van Drie falsely certified to the Missouri Department of Employment Security 31 times that she was not employed, was available and searching for work, and was not receiving any type of employment income.
In addition to the payroll tax conspiracy, Lorin Van Drie also was found guilty of 18 counts of failure to pay over employment tax and one count of theft of public money related to $11,840 in unemployment benefits that he was not entitled to receive while working at his own construction company and doing maintenance work at All About Smiles.
Under federal statutes, Lorin Van Drie is subject to a sentence of up to 10 years in federal prison without parole for theft of unemployment benefits and five years in federal prison without parole on each additional count of conviction. 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 has not been scheduled.
This case is being prosecuted by Assistant U.S. Attorneys Cindi S. Woolery and Steve Mohlhenrich and Special Assistant U.S. Attorney Shannon Kempf of the Missouri Attorney General’s Office. It was investigated by Health and Human Services – Office of Inspector General, the Missouri Attorney General’s Office Medicaid Fraud Control Unit and IRS-Criminal Investigation.
Former Chief Financial Officer of the Boyd Group Pleads Guilty to Stealing More Than 3.5 Million DollarsRead the Press Release
St. Louis, MO – Bryan G. Vonderahe, 45, of Kirkwood, Missouri, pleaded guilty to three felony counts of wire fraud. Vonderahe appeared in federal court today before U.S. District Judge Ronnie L. White who accepted his plea and set his sentencing date for January 16, 2020.
According to court documents, beginning during January 2012 and continuing through January 2019, Vonderahe schemed to defraud The Boyd Group and its affiliated companies where he was employed as chief financial officer and controller. Vonderahe issued approximately 500 company checks to himself during that period of time, totaling approximately 3.8 million dollars, without the knowledge or authority of the company’s ownership. Vonderahe falsified internal company records and issued false financial statements to the company’s outside auditors in order to cover up and conceal his fraud scheme. Vonderahe used the stolen and embezzled funds for his own personal use, unrelated to the legitimate business of the company, including to pay for travel for himself and his family to locations such as Florida, Colorado, and Nevada; to make payments on his personal residential mortgage; and to pay for gambling and related activities.
“It is unfortunate that some people are willing to betray the trust placed in them,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “But when it occurs, we will aggressively act to protect businesses and the public from fraud and corruption.”
As part of his guilty plea, Vonderahe agreed to forfeit to the United States a GMC Acadia Denali; a Land Rover, Range Rover Sport; and his residence at 1943 Windy Hill Road, St. Louis, MO 63122.
Vonderahe faces a maximum penalty of 20 years in prison and a $250,000 fine as to each of the three counts. 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. Attorneys Hal Goldsmith and Kyle Bateman are handling the case for the U.S. Attorney’s Office.
Former Chief Executive Officer of Mozaic Group Ltd. Pleads Guilty to Bank FraudRead the Press Release
St. Louis, MO –Mary Ann Gibson, 63, of St. Louis, Missouri, pleaded guilty to one felony charge of bank fraud. Gibson appeared this morning in front of United States District Judge Henry E. Autrey who accepted her plea and set her sentencing date for January 16, 2020.
According to court documents, Gibson obtained a line of credit for Mozaic Group Ltd. from Enterprise Bank and Trust and subsequently drew down on that line of credit to run the business. From approximately January 2016 through August 2017, Gibson falsely and fraudulently inflated the cash flow of the company she reported to the bank in order to maintain and increase the line of credit from Enterprise Bank and Trust. Mozaic and Gibson thereafter defaulted on the loan because Mozaic did not, in fact, have the cash flow Gibson reported to the bank. Gibson’s fraud resulted in a loss of approximately $2.5 million to the bank.
Gibson faces up to 30 years in prison and a fine of not more than $1,000,000 or both. Restitution is also mandatory. In determining the actual sentences, 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 Lindsay McClure-Hartman is handling the case for the U.S. Attorney’s Office.
Former Bank Executive Pleads Guilty to Fraud Related to Failed Country Bank of Aledo, IllinoisRead the Press Release
ROCK ISLAND, Ill. – The former executive vice president and chief loan officer for the failed Country Bank of Aledo, Ill., Dana Frye, today pleaded guilty to charges of making false statements to the bank. During his appearance before Chief U.S. District Judge Sara Darrow, Frye pleaded guilty to conspiring with others to make materially false statements to the Country Bank board of directors to influence the bank to make loans to entities in which he held a personal financial interest.
Frye, 66, currently of Bettendorf, Iowa, served as executive vice president and chief lending officer for Country Bank, in Aledo, from its formation in March 2000 to Dec. 31, 2010. During that time, Frye held financial interest in multiple real estate developments. These developments included a golf course and surrounding residential lots in Sherrard, Ill., known as the “Fyre Lake Project,” which benefitted from Country Bank loans that totaled more than $20 million.
Frye admitted that he conspired with others to influence Country Bank to make loans to projects in which he held a personal financial interest, including the Fyre Lake Project, but failed to disclose his financial interest. Frye further admitted that he used his position to assist others to secure loans for the Fyre Lake Project and another project in Milan, Ill.
Frye held ownership in multiple companies that either directly participated in real estate development or provided services to persons and entities engaged in the development. One company, known as Webgem, Inc., owned by Frye and his son, provided accounting and other services to developers. Frye did not disclose to the bank board of directors that Webgem was going to be paid, and eventually was paid, $480,000, from bank loans of $5 million related to the project in Milan. In May 2009, Country Bank received $4.1 million in aid through the Department of Treasury’s Troubled Asset Relief Program, known as TARP. In October 2011, Country Bank failed and the Federal Deposit Insurance Corporation, as receiver, covered losses in excess of $70 million.
At sentencing, scheduled on February 26, 2020, Frye faces a potential sentence of imprisonment of five years along with payment of restitution.
The FDIC Office of Inspector General and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) conducted the investigation. First Assistant U.S. Attorney Douglas Quivey and Assistant U.S. Attorney Douglas McMeyer represent the U.S. Attorney’s Office for the Central District of Illinois in the case prosecution.
Florida Woman Sentenced to Federal Prison for Health Care FraudRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Natacha Gonzalez, age 47, of Weston, Florida, was sentenced to 12 months and one day in prison after pleading guilty to Health Care Fraud and Aggravated Identity Theft. Gonzalez was also ordered to pay $61,738.08 in restitution to various insurance companies. United States District Court Judge Timothy Cain, of Anderson, presided.
Evidence presented to the court established that Gonzalez owned a Florida business engaged in medical marketing. Gonzalez brokered false prescriptions for compounded medications and received a profit when they were filled.
Gonzalez identified three doctors and obtained blank prescriptions in their names. Gonzalez forged prescriptions by completing the blank prescriptions with drug names and the doctor’s information. These forged prescriptions were then sent to a South Carolina pharmacy to be filled. The pharmacy then billed insurers for these fraudulent prescriptions and received payment. The pharmacy then sent a portion of the payment to Gonzalez.
“Fraud on our insurance companies raises health care costs for everyone,” said U.S. Attorney Lydon. “The U.S. Attorney’s Office is committed to protecting the integrity of our health care system holding accountable those who seek to enrich themselves through unlawful kickback schemes.”
"This sentencing is the product of a thorough investigation and demonstrates the intent of the Defense Criminal Investigative Service (DCIS) and our law enforcement partners to root out fraud and corruption involving medical professionals who put patients’ health at risk with criminal intent,” said Special Agent in Charge Robert E. Craig, Jr., DCIS Mid-Atlantic Field Office. “DCIS will continue to protect the integrity of the Department of Defense by targeting fraud, waste, and abuse that negatively impacts critical programs such as TRICARE."
Agents of the DCIS and the United States Army Criminal Investigation Command Major Procurement Fraud Unit – Atlanta investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office prosecuted the case.
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Federal grant of $200,000 to help Yellowstone Substance Abuse Connect develop community planRead the Press Release
BILLINGS—A $200,000 federal grant has been awarded to help fund efforts of Yellowstone Substance Abuse Connect to increase prevention and treatment efforts as part of a larger initiative to reduce violent crime in the community, U.S. Attorney Kurt Alme announced today.
The Office of National Drug Control Policy awarded $200,000 to the Rocky Mountain High Intensity Drug Trafficking Area, which will fund Yellowstone Connect and their efforts.
The grant is the second major award from ONDCP for this effort. Last October, a $358,741 grant launched Yellowstone Connect and their project to create a community plan by 2020 for prevention, treatment and diversion.
Yellowstone Connect was organized though the leadership of United Way of Yellowstone County and Project Safe Neighborhoods, which is a Department of Justice initiative reinvigorated two years ago to reduce violent crime. Yellowstone Connect is a coalition of more than 82 area nonprofit organizations and governmental entities. The community plan will be available to other communities.
“We are excited to receive this second grant, which will continue the important work Yellowstone Connect is doing create a community plan to address substance abuse. Enforcement is only a part of the solution to reducing violent crime. We need the community’s help and support to reduce drug demand through prevention, treatment and drug court diversion,” U.S. Attorney Alme said.
“I want to thank all of our PSN federal, state and local law enforcement, and probation and parole partners for their outstanding work to make this community safer. I also want to thank the Rocky Mountain HIDTA Executive Board and other members of the Montana Sub Committee, including Bryan Lockerby, administrator of the Montana Division of Criminal Investigation, and Billings Police Chief Rich St. John. In addition, I want to recognize United Way of Yellowstone County for its leadership, the City of Billings for administering the grant, and all of the Yellowstone Connect partners for their commitment to reducing the demand for meth in this community,” U.S. Attorney Alme said.
“These additional HIDTA funds are game-changing for the coalition’s ability to move to action. I want to thank Project Safe Neighborhoods and our HIDTA partners for making this possible -- especially U.S. Attorney Kurt Alme, and Billings Police Chief Rich St. John. I also want to thank our entire Substance Abuse Connect executive team, consultants, and all two hundred plus coalition members who have contributed to the work so far. With this new funding, I believe we will soon be celebrating prevention, treatment, and diversion wins,” said Kristin Lundgren, United Way’s Director of Impact.
Through PSN in Yellowstone County, federal, state and local law enforcement and probation and parole identified methamphetamine trafficking as the leading cause for an increase in violent crime and have focused on arresting and prosecuting drug traffickers, armed robbers and violent felons with firearms. The enforcement partners also recognize that meth prevention, treatment and court diversion are necessary to reduce violence.
Yellowstone Connect, established in May 2018, has worked with a series of consultants to complete an in-depth assessment of substance abuse in the community, map services and gaps, learn about what is working elsewhere, and engage the community in a rigorous planning process to establish priorities for action in prevention, treatment, and diversion. Their plan will be completed by December 31, 2019.
For more information about Yellowstone Connect, contact Kristin Lundgren, at 406-272-8505.
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Federal Jury Convicts Baltimore Heroin and Fentanyl DealerRead the Press Release
Baltimore, Maryland – A federal jury convicted Maximo Gondres-Medrano, age 35, of Baltimore, Maryland, after a three-day trial for the federal charge of possession with intent to distribute more than 400 grams of fentanyl and heroin. The jury returned its verdict late on October 9, 2019.
The guilty plea 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; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; and Commissioner Michael Harrison of the Baltimore Police Department.
“State and federal law enforcement and prosecutors in Baltimore City are working together to arrest and prosecute those who peddle deadly fentanyl on our streets and in our neighborhoods,” said U.S. Attorney Robert K. Hur. “I am grateful to Baltimore City State’s Attorney Marilyn Mosby, who shares my resolve and has cross-designated an Assistant State’s Attorney from her office, so that we are effectively using our resources to coordinate our efforts. We are committed to reducing overdose deaths from fentanyl and from all opioids.”
According to evidence presented at his three-day trial, on September 8, 2017, federal law enforcement prepared an operation to arrest and search Gondres-Medrano based on information that he would be transporting a large quantity of narcotics. The agents observed Gondres-Medrano leave his residence in the 800 block of Whitelock Avenue, in Northwest Baltimore, carrying a shoebox believed to contain narcotics, and then enter the passenger seat of a vehicle. The vehicle was stopped and law enforcement recovered the box, which contained a wrapped package of almost 793 grams of a mixture of heroin and fentanyl—a quantity sufficient to kill hundreds of thousands of people. During the investigation, federal law enforcement learned that on August 24, 2017, Gondres-Medrano received a shipment of suspected narcotics in a commercial mail shipping envelope from Mexico. Gondres-Medrano used his phone to record a series of instructional videos of himself opening the envelope while he demonstrated how the narcotics were successfully concealed within the envelope so that it would not be detected. In the videos, Gondres-Medrano filmed himself opening the envelope, peeling back a black film that masked the drugs that came from Mexico, and showing the suspected heroin/fentanyl to viewers.
In a recorded interview with law enforcement after his arrest, Gondres-Medrano admitted that the August 24, 2017 shipping envelope contained heroin, and provided information about his drug trafficking activity. Gondres-Medrano admitted that he had multiple sources of supply of heroin and ordered kilogram-sized quantities from them. Gondres-Medrano testified at trial and denied that he carried the shoebox of narcotics to the car on September 8, 2017, and asserted that he never looked inside the nearly 793 gram package to see that it contained narcotics. However, on cross examination, he admitted that he had taken delivery of the narcotics, which he knew to contain heroin, from one of his sources of supply in order to deliver it to another individual.
Gondres-Medrano faces a mandatory minimum sentence of 10 years in federal prison and a maximum sentence of life in federal prison. U.S. District Judge George L. Russell, III has not yet scheduled Gondres-Medrano’s sentencing.
United States Attorney Robert K. Hur commended the FBI, HSI, and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Special Assistant U.S. Attorney Jeffrey M. Hann, an Assistant State’s Attorney from the Office of the State’s Attorney for Baltimore City who is cross-designated to handle fentanyl and other drug cases in federal court, and Assistant U.S. Attorney Derek E. Hines, who are prosecuting the case.
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Executive Office for Immigration Review Announces Case Completion Numbers for Fiscal Year 2019Read the Press Release
The Justice Department’s Executive Office for Immigration Review (EOIR) today announced the agency’s case completion numbers topped 275,000 cases for fiscal year 2019 (FY19), the second highest number of case completions in EOIR’s history. This number marks an increase of roughly 80,000 case completions from fiscal year 2018 (FY18), the same year that EOIR established case completion goals for immigration judges in response to years of declining or stagnant productivity. The FY19 numbers are nearly double the number of completed cases from just three years ago.
“Our immigration courts are doing everything in their power to efficiently adjudicate immigration cases while respecting due process rights, but efficient adjudication alone cannot resolve the crisis at the border,” said EOIR Director James McHenry. “While EOIR is doing an unprecedented job adjudicating cases fairly and expeditiously, the nearly one million case backlog will continue to grow unless Congress acts to address the crisis at the border.”
As part of a continued effort to return the rule of law to America’s immigration system, the Justice Department has introduced initiatives to improve EOIR’s efficiency in adjudicating cases without compromising due process. The Department has also worked to reduce EOIR’s “backlog” of cases by hiring new judges, expanding court capacity, and emphasizing the importance of timely completing cases consistent with the law. However, due to the high volume of immigration cases filed by the Department of Homeland Security (DHS) driven by the ongoing border crisis, EOIR’s pending caseload was approximately 987,000 as of the end of FY19. The 444,000 new cases filed by DHS in FY19 is the highest number in history and is well over the historical average of 225,294 from FY09 to FY16.
EOIR had 442 immigration judges as of Sept. 30, 2019, the highest number in its history. Additionally, 92 new judges were hired in four classes over FY19, and another class of judges is expected to join EOIR in November 2019. On average, immigration judges who performed over the whole year completed 708 cases each in FY19.
Dominican National Sentenced for Identity TheftRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for identity theft.
Maissel Avalo-Mejia, 30, a Dominican national residing in Foxboro, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 27 months in prison. He will face deportation proceedings upon completion of his sentence. In May 2019, Avalo-Mejia pleaded guilty to one count of misuse of a Social Security number and one count of aggravated identity theft.
Avalo-Mejia used the name, date of birth, and Social Security number of a Puerto Rican man, who is presently a Specialist in the U.S. Army, to obtain several Massachusetts driver’s licenses, the most recent issued on April 10, 2014. Avalo-Mejia was identified, among other things, from a fingerprint match with a Dominican Republic identification document issued to him and bearing his photo.
United States Attorney Andrew E. Lelling; Jason Molina, Special Agent in Charge of Homeland Security Investigations in Boston; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistant U.S. Attorney Sandra S. Bower of Lelling’s Major Crimes Unit prosecuted the case.
Dominican National Indicted for Identity Theft and Making False Statements in an Immigration DocumentRead the Press Release
BOSTON – A Dominican national was indicted today for making false statements in an immigration document and aggravated identity theft.
Teodoro Tejada Rivas, 63, a Dominican national who resided in Lawrence until recently, was indicted on one count of making false statements in an immigration document and one count of aggravated identity theft. Tejada Rivas was arrested on Sept. 10, 2019, in Miami, Fla., and has been detained since.
It is alleged that since at least 2006, Tejada Rivas has been using the identity of a U.S. citizen from Puerto Rico. Tejada Rivas used the name, Social Security number and date of birth of the Puerto Rican man to apply for a U.S. passport in 2007, and to file an immigration form in 2016 in an attempt to bring his Dominican wife and children into the United States. The fraudulent immigration form was filed three years after the death of the U.S. citizen whose identity Tejada Rivas had stolen.
United States Attorney Andrew E. Lelling; William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office; and John Gibbons, U.S. Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Elianna Nuzum of Lelling’s Major Crimes Unit is prosecuting the case.
Despite Fake Mustache, Bank Robber Winds up in PrisonRead the Press Release
KANSAS CITY, KAN. – A man who wore a fake mustache and a hospital mask when he robbed a bank in Overland Park was sentenced today to four years in federal prison, U.S. Attorney Stephen McAllister said.
Steven D. Lavy, 56, pleaded guilty to one count of bank robbery. According to court records, he robbed the Bank of the West at 12080 Blue Valley Parkway in Overland Park on June 21, 2017. During the robbery, he wore a yellow striped polo shirt, khaki pants, a fake mustache, a blue and white hospital mask, a straw hat and sunglasses. He also had his left arm in a sling.
Police spotted his getaway car a few minutes after the robbery and there was a chase during which Lavy drove on sidewalks and twice rammed a police car. Police found the fake mustache on the dashboard of his car when they arrested him.
McAllister commended the Overland Park Police Department, the Leawood Police Department, the FBI and Assistant U.S. Attorney Tris Hunt for their work on the case.
Court-Appointed Executor of Decedent’s Estate Sentenced to Two Years in Prison for EmbezzlementRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that GREGORY BAYARD was sentenced to 24 months in prison in White Plains federal court for embezzling approximately $1.4 million from a decedent's estate for which he served as a court-appointed administrator. BAYARD had pled guilty to one count of wire fraud on October 23, 2018. U.S. District Judge Cathy Seibel imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Gregory Bayard was obligated to ensure that the assets of a decedent he represented were protected and that the rightful beneficiaries received their inheritances. But Bayard disregarded his fiduciary duties when he embezzled more than $1.4 million from his client’s estate. Now, a judge has ordered him to repay the estate and spend two years behind bars.”
According to the allegations contained in court documents:
BAYARD was appointed administrator of the estate of a former resident of Mt. Vernon by the Surrogate’s Court in 2008. His duties as administrator included collecting the assets of the estate. As an administrator, BAYARD had a fiduciary duty to the estate and to the decedent’s son, the sole beneficiary of his father’s will. New York law provides for a fee to estate administrators like BAYARD based on a percentage of the value of the estate’s assets.
In 2009, the decedent’s son retained an attorney and filed a motion in the Surrogate’s Court to remove BAYARD as the administrator of his father’s estate. While the motion was pending, BAYARD embezzled more than $1.4 million from the estate’s bank account. From June 2011 to June 2012, BAYARD wrote approximately 14 checks totaling more than $435,000 from the estate’s account to himself. From December 2012 to May 2016, BAYARD caused more than 70 electronic wire transfers of a total of more than $1 million from the estate’s account to his personal account. BAYARD spent the money on home renovations, college tuition, and other personal expenses, and transferred some of the money to family members.
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In addition to the prison term, BAYARD, 59, of Scotch Plains, New Jersey, was sentenced to three years of supervised release and was ordered to pay restitution in the amount of $1,457,739.
Mr. Berman praised the outstanding investigative work of the U.S. Postal Inspection Service and the New York State Comptroller.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney James McMahon is in charge of the prosecution.
Cortland County Woman Pleads Guilty to Sexually Exploiting a ChildRead the Press Release
SYRACUSE, NEW YORK – Brittany Berry, age 25, of Cortland, New York, pled guilty today to one count of conspiracy to sexually exploit a child and five counts of sexual exploitation of a child, announced United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of her guilty plea, Berry admitted that she conspired with Lawrence Berry (whose charges are still pending) to sexually exploit a 3-year-old minor child in August and September of 2018 and that she engaged in sexual exploitation of that child on five different occasions. Berry further admitted that she transmitted images of the sexual abuse of the child to Lawrence Berry over livestream and by sending Lawrence Berry a video and images of the abuse.
Sentencing is scheduled for February 6, 2020 in Utica before United States District Judge David N. Hurd. Berry faces a minimum sentence of 15 years and up to 30 years in prison on each of the six counts of conviction. She also will be required to spend at least 5 years and up to a lifetime term on post-imprisonment supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the FBI and the City of Cortland Police Department, and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal 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 https://www.justice.gov/psc
Convicted Felon Pleads Guilty to Armed Robberies in the Central West EndRead the Press Release
St. Louis, MO – Brandon Mardell Woods, 35, of St. Louis, pleaded guilty to one count of robbery and two counts of using a firearm during a crime of violence for his involvement in two robberies in the Central West End. Woods appeared before U.S. District Judge Henry E. Autrey who accepted his plea and set his sentencing date for January 27, 2020.
According to court documents, on June 17, 2018, a victim was walking to her vehicle when Woods approached her, pointed a firearm at her, and ordered her into her vehicle. Woods got into the driver’s seat and directed the victim into the passenger seat. Victim complied and Woods drove the victim’s vehicle to an ATM where he withdrew $500.00 from the victim’s bank account.
On June 19, 2018, two victims were seated in their vehicle when Woods got into the backseat, pointed a firearm at them, and ordered one of the victims to drive him to an ATM. Once at the ATM, Woods directed one of the victims to withdraw money from her bank account. She withdrew $200.00 from her account and gave it to Woods.
On June 20, 2018, officers of the St. Louis Metropolitan Police Department arrested Woods and found him to be in possession of a firearm.
The St. Louis Metropolitan Police Department, the Federal Bureau of Investigation, and the Circuit Attorney’s Office investigated this case. Assistant United States Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.
Cheswick Man Involved in Stamp Theft Scheme Detained Pending SentencingRead the Press Release
PITTSBURGH, PA - A resident of Cheswick, Pennsylvania, pleaded guilty in federal court to charges related to theft of government property and uttering and possessing false securities, United States Attorney Scott W. Brady announced today.
John Martell, 38, pleaded guilty to five counts before United States District Judge J. Nicholas Ranjan.
In connection with the guilty plea, the court was advised that between approximately April 23, 2018 and June 11, 2018, Martell and his codefendant, Holly Lovasik, who was a former employee of the United States Postal Service, engaged in a stamp theft scheme in order to pay a debt they owed to their drug dealer. The coconspirators purchased $34,800 in stamps from approximately 28 different Post Offices in the Western District of Pennsylvania, using checks that were written on closed accounts and checks that belonged to two deceased doctors that were falsely altered, completed and signed. Martell and Lovasik then re-sold the stamps for cash, predominantly at a pawn shop in Tarentum, PA. The court was further informed that, in addition to the stamp theft, the United States Post Office incurred $2,790 in check surcharges, for a total loss of $37,590.
Judge Ranjan scheduled sentencing for January 30, 2020 at 10:00 a.m. The law provides for a total sentence of 45 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Martell’s bond was revoked due to a bond violation and failure to appear for the bond violation hearing, and as such, he has been detained pending sentencing.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation that led to the prosecution of Martell.
Chelsea Man Sentenced for RICO Conspiracy Involving Attempted MurderRead the Press Release
BOSTON – A Chelsea man was sentenced today in federal court in Boston for RICO conspiracy involving attempted murder and drug trafficking.
Brandon Baez, aka “Big Baby,” was sentenced by U.S. District Court Judge Richard G. Stearns to 10 years in prison and five years of supervised release. In January 2019, Baez pleaded guilty to one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity and one count of conspiracy to distribute cocaine base and cocaine.
During an investigation into a network of street gangs that had created alliances to traffic weapons and drugs throughout Massachusetts, Baez was identified as a member of the East Side Money Gang (ESMG), a Chelsea-based street gang, which uses violence to further its criminal activities and enforce its internal rules. Specifically, ESMG uses violence to protect its members/associates, target rival gang members/associates and intimidate potential witnesses.
In intercepted calls on April 3, 2016, Baez informed Angel Mejia, a leader in the ESMG, that he had just shot two men in a black Cadillac at a gas station in Revere because he believed that they were members of a rival street gang. Baez told Mejia that he believed he had killed at least one of the intended victims. Two days before the shooting, Mejia and fellow ESMG member Josue Rodriguez had provided Baez with the .22 caliber revolver used in the shooting. Following the shooting, Baez asked Mejia for assistance getting a larger caliber handgun after learning that no one was killed during the Revere shooting. Baez was subsequently arrested in Chelsea by local law enforcement officers while armed with the .22 caliber revolver used in the Revere shooting.
In October 2017, Rodriguez was sentenced to over 10 years in prison and five years of supervised release. In June 2019, Mejia was sentenced to more than 15 years in prison and five years of supervised release. In September 2019, Jesus Perez, a leader in a rival Chelsea-based street gang (the Outlaws), was sentenced to 20 years in prison and four years of supervised release for multiple federal charges, including violent crime in aid of racketeering, drug trafficking and firearms charges.
Baez is one of 53 defendants indicted in June 2016 on federal firearms and drug charges following an investigation into a network of street gangs that created alliances to traffic weapons and drugs and to generate violence against rival gang members. According to court documents, the defendants, who are leaders, members, and associates of the 18th Street Gang, East Side Money Gang and the Boylston Street Gang, were responsible for fueling a gun and drug pipeline across a number of cities and towns in eastern Massachusetts. During the course of the investigation, over 70 firearms were seized.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; John Gibbons, U.S. Marshal for the District of Massachusetts; Maura Healey, Attorney General of Massachusetts; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Gross; Chelsea Police Chief Brian Kyes; and Brockton Police Chief John Crowley made the announcement. The U.S. Attorney’s Office also acknowledges the assistance of the Suffolk and Middlesex County Sheriff Departments and the Malden, Revere and Everett Police Departments. Lelling’s Organized Crime and Gang Unit is prosecuting the case.
Charity employee charged federally with stealing fundsRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that Christina Short, 43, of Speedway, Indiana, was arrested and charged with wire fraud for perpetrating a multi-year scheme to steal over $450,000 from the charitable foundation where she worked.
“Charities serve a critical role in our society. Those who donate should feel secure in knowing their funds will go where intended,” said Minkler. “And those who choose to steal should likewise know that they will be caught, prosecuted, and held accountable in court.”
Short’s now-former employer was Zeta Tau Alpha (ZTA), a national women’s college fraternity headquartered in Carmel, Indiana, with thousands of student members in approximately 170 college chapters, as well as approximately 200,000 living alumnae members. Since 2002, Short served as the financial coordinator for the ZTA Foundation, a 501(c)(3) charity and the national philanthropic organization of ZTA. The Foundation received numerous donations on an almost daily basis, which it used for charitable purposes such as scholarships, promoting breast cancer awareness, and education. Short was responsible for receiving, depositing, and accounting for individual donations.
In 2012, according to the charges, Short began stealing donations. Specifically, the charges allege that the Foundation would receive dozens of donations each month, and each month, Short would pocket several of them, typically money orders. Short would allegedly alter the “pay to” information, making the money orders payable to herself, and then deposit them in one of her several bank accounts. Over time, Short allegedly stole greater and greater numbers of donations. By 2016, she was stealing over 150 donations per year, until she was caught in late 2018.
The charges further allege that Short took multiple steps to conceal her fraud from her employer and ZTA Foundation donors. For example, Short ensured that each donation received, including the ones she ultimately stole, was entered into the ZTA Foundation donation database. This concealed her thefts from donors by ensuring that individual donors received “thank you” cards and tax deduction information, and college chapters would see accurate giving totals when they checked the ZTA website.
At the same time, Short would allegedly alter the ZTA Foundation’s books and records regarding the total amounts donated and deposited into the bank, reducing those totals by the amounts she stole. So when the Foundation checked its bank account balances, they matched their books. Short even allegedly provided altered documents to ZTA’s outside auditors to conceal her fraud.
Short allegedly stole approximately 800 money orders intended for the ZTA Foundation and deposited them into her personal bank accounts. In total, she allegedly embezzled over $450,000 in charitable funds.
Short’s conduct was brought to light when a fraud examiner at her bank noticed what appeared to be doctored money orders deposited into her account. The bank promptly notified ZTA, who quickly investigated the matter and terminated Short. ZTA and the bank also notified law enforcement, who immediately began investigating, with ZTA’s cooperation.
This case was jointly investigated by the Federal Bureau of Investigation and the Carmel Police Department.
According to Assistant U.S. Attorney Nick Linder, who is prosecuting the case for the government, Short would face up to 20 years in prison on each charge and payment of full restitution, if convicted.
The investigation is ongoing.
Charges are not evidence of guilt. All defendants are presumed innocent until proven otherwise, by trial or guilty plea, in federal court.
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 prosecuting complex, long-running fraud schemes. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.1
California Resident Charged with Leading Telemarketing Conspiracy to Defraud and Extort U.S. ConsumersRead the Press Release
On Oct. 8, 2019, Angel Armando Adrianzen, 45, of California was indicted by a Miami, Florida grand jury on fraud and extortion charges for engaging with call centers in Peru that took money from U.S. Spanish-speaking victims through lies and threats. Adrianzen was charged with conspiracy to commit mail fraud and wire fraud, five counts of wire fraud, five counts of mail fraud, and four counts of extortion.
Assistant Attorney General Jody Hunt, U.S. Attorney Ariana Fajardo Orshan, and Acting Miami Division Postal Inspector in Charge Lesley C. Allison announced the return of the indictment.
The indictment alleges that Adrianzen partnered with a series of Peruvian call centers that contacted U.S. consumers, many of whom were elderly and vulnerable, using Internet-based telephone calls. According to the indictment, these callers claimed to be attorneys and government representatives, and falsely told victims that they had failed to pay for or receive delivery of products. The callers also falsely threatened victims with court proceedings, negative marks on their credit reports, imprisonment, or immigration consequences if they did not immediately pay for the purportedly delivered products and settlement fees. Many victims made monetary payments based on these baseless threats. According to the indictment, Adrianzen received the victims’ payments and shipped products to the victims for these call centers, knowing that they used fraudulent and extortionate means to extract money from vulnerable victims.
Adrianzen was originally charged by criminal complaint and was arrested on Sept. 16 in California. He was ordered detained pending trial and is expected to arrive in Miami to face the charges against him next week.
“The Department of Justice is committed to identifying and prosecuting foreign-based fraud schemes that target and extort U.S. consumers,” said Assistant Attorney General Jody Hunt of the Department of Justice's Civil Division. “The Department of Justice’s Consumer Protection Branch will continue to work hand-in-hand with our Transnational Elder Fraud Strike Force partners to bring to justice international fraudsters who prey on vulnerable U.S. consumers.”
“The charges in this case seek to protect vulnerable and elderly victims of an international fraudulent scheme. Individuals who defraud American consumers will be brought to justice, no matter where they are located,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.
“The defendant in this case used the U.S. Mail in furtherance of a criminal enterprise and Postal Inspectors were able to quickly identify the scheme and worked aggressively with the Department of Justice’s Consumer Protection Branch to ultimately bring him to justice,” said Lesley C. Allison, Acting Inspector in Charge of the Miami Division of the U.S. Postal Inspection Service.
Trial Attorneys Phil Toomajian and Joshua Rothman of the Department of Justice’s Consumer Protection Branch are prosecuting the case. The U.S. Postal Inspection Service investigated the case and the U.S. Attorney’s Office of the Southern District of Florida has provided critical assistance.
The charges in the indictment are only allegations, and the defendant is presumed innocent unless and until proven guilty.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. Today’s action was developed as part of the efforts of the Department’s Transnational Elder Fraud Strike Force, which the Attorney General established in June to combat the threat of foreign fraud schemes targeting American seniors.
California Resident Charged with Leading Telemarketing Conspiracy to Defraud and Extort U.S. ConsumersRead the Press Release
MIAMI - On October 8, 2019, Angel Armando Adrianzen of California was indicted by a Miami grand jury on fraud and extortion charges for engaging with call centers in Peru that took money from U.S. Spanish-speaking victims through lies and threats. Adrianzen, 45, was charged with conspiracy to commit mail fraud and wire fraud, five counts of wire fraud, five counts of mail fraud, and four counts of extortion.
U.S. Attorney Ariana Fajardo Orshan, Assistant Attorney General Jody Hunt, and Acting Miami Division Postal Inspector in Charge Lesley C. Allison announced the return of the indictment.
The indictment alleges that Adrianzen partnered with a series of Peruvian call centers that contacted U.S. consumers, many of whom were elderly and vulnerable, using Internet-based telephone calls. According to the indictment, these callers claimed to be attorneys and government representatives, and falsely told victims that they had failed to pay for or receive delivery of products. The callers also falsely threatened victims with court proceedings, negative marks on their credit reports, imprisonment, or immigration consequences if they did not immediately pay for the purportedly delivered products and settlement fees. Many victims made monetary payments based on these baseless threats. According to the indictment, Adrianzen received the victims’ payments and shipped products to the victims for these call centers, knowing that they used fraudulent and extortionate means to extract money from vulnerable victims.
Adrianzen was originally charged by criminal complaint and was arrested on September 16 in California. He was ordered detained pending trial and is expected to arrive in Miami to face the charges against him next week.
“The charges in this case seek to protect vulnerable and elderly victims of an international fraudulent scheme. Individuals who defraud American consumers will be brought to justice, no matter where they are located,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.
“The Department of Justice is committed to identifying and prosecuting foreign-based fraud schemes that target and extort U.S. consumers,” said Assistant Attorney General Jody Hunt. “The Department of Justice’s Consumer Protection Branch will continue to work hand-in-hand with our Transnational Elder Fraud Strike Force partners to bring to justice international fraudsters who prey on vulnerable U.S. consumers.”
“The defendant in this case used the U.S. Mail in furtherance of a criminal enterprise and Postal Inspectors were able to quickly identify the scheme and worked aggressively with the Department of Justice’s Consumer Protection Branch to ultimately bring him to justice,” said Lesley C. Allison, Acting Inspector in Charge of the Miami Division.
Trial Attorneys Phil Toomajian and Joshua Rothman of the Department of Justice’s Consumer Protection Branch are prosecuting the case. The U.S. Postal Inspection Service investigated the case and the U.S. Attorney’s Office of the Southern District of Florida has provided critical assistance.
The charges in the indictment are only allegations, and the defendant is presumed innocent unless and until proven guilty.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. Today’s action was developed as part of the efforts of the Department’s Transnational Elder Fraud Strike Force, which the Attorney General established in June to combat the threat of foreign fraud schemes targeting American seniors.
Businessman Sentenced to a Year in Prison for Stealing Employer’s Trade Secrets While Planning New Job in ChinaRead the Press Release
CHICAGO — A federal judge has sentenced a 30-year employee of a McHenry County manufacturing firm to a year and a day in federal prison for stealing trade secret information while planning to work for a rival company in China.
ROBERT O’ROURKE, 59, of Lake Geneva, Wisc., was convicted earlier this year by a federal jury in Chicago on seven counts of theft of trade secrets. In addition to the prison term, U.S. District Judge Andrea R. Wood on Wednesday also fined O’Rourke $100,000.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Larry L. Lapp, acting Special Agent-in-Charge of the Chicago office of the FBI.
“Theft of trade secrets is a serious offense with wide-ranging consequences to the victim companies and the United States economy,” Assistant U.S. Attorney Shoba Pillay argued in the government's sentencing memorandum. “A would-be insider thief must understand the consequences of stealing their employer's trade secrets in order to benefit competitors, particularly when those competitors are based in China.”
Ms. Pillay and Assistant U.S. Attorney Christopher V. Parente represented the government.
According to evidence at trial, O’Rourke since 1984 worked for Dura-Bar, a Woodstock-based manufacturer of continuous cast-iron products. O’Rourke held the positions of plant metallurgist, quality assurance manager and salesperson, and helped the company develop business in China and other locations. In late 2013, O’Rourke began several months of negotiations to take a similar job with a rival firm in Jiangsu, China.
In September 2015, while still employed at Dura-Bar, O’Rourke accepted the job offer in China. He then downloaded electronic data and documents belonging to Dura-Bar without authorization two days before officially leaving the company. The following week, he packed up the proprietary information and went to O’Hare International Airport in Chicago to board a flight to China. Federal authorities intervened at the airport and seized the stolen trade secrets from O’Rourke before he could travel to China.
Browning man sentenced to five years in prison for distributing, receiving child pornographyRead the Press Release
GREAT FALLS—A Browning man who admitted using his phone to access and distribute child pornography from his dorm room at the University of Montana was sentenced today to five years in prison, followed by 10 years of supervised release and was ordered to pay $18,000 restitution, U.S. Attorney Kurt Alme said.
Dylan LaPlant, 22, pleaded guilty in June to distribution of child pornography and receipt of child pornography.
U.S. District Judge Brian M. Morris presided.
In court records filed in the case, the prosecution said an investigation began in March 2018 when an FBI special agent in New York notified an FBI special agent in Montana that during an ongoing child porn investigation, agents had discovered an instant messenger application account in Montana that was linked to the receipt and distribution of numerous child pornography images. The investigation identified LaPlant as a participant in group chat sessions and a chat member who sent multiple links to images and videos of child pornography to other group members.
During an interview with FBI agents in April 2018, LaPlant admitted he had been a student at the University of Montana, and while in his dorm room, he would access the internet with his smart phone. He admitted to accessing group accounts that contained messages and links to child pornography and that he used his phone to view the material and forward links to other group users.
FBI agents served a search warrant on LaPlant’s home in Browning and seized electronic devices that were found to contain more than 500 images and videos of child pornography.
Assistant U.S. Attorney Jeffrey Starnes prosecuted the case, which was investigated by the FBI.
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Bozeman man sentenced to more than three years in prison for possessing child pornographyRead the Press Release
MISSOULA—A Bozeman man who admitted to viewing and downloading child pornography for years was sentenced today to 41 months in prison followed by 10 years of supervised release, U.S. Attorney Kurt Alme said.
Bruce Alan Gagne, 59, pleaded guilty to possession of child pornography in June.
U.S. District Judge Donald W. Molloy presided. Judge Molloy also ordered the forfeiture of computer equipment and USB storage devices seized in the case.
The prosecution said in court records that in May 2018, the Gallatin County Sheriff’s Office received a USB storage device, or thumb drive, with suspected images of child pornography and that the device was known to belong to Gagne. A detective examined the thumb drive after getting a search warrant and determined the device contained images of children engaged in sexually explicit conduct. A Bozeman Police detective, who is a member of the Montana Internet Crimes Against Children Task Force, got a warrant to search Gagne’s residence. During the search, officers seized numerous items including a USB device and laptop, which were examined and found to contain images and videos of child pornography. The child pornography included prepubescent children. In an interview the day of the search, Gagne admitted he had viewed and downloaded child pornography for years.
Assistant U.S. Attorney Cyndee Peterson prosecuted the case, which was investigated by the Bozeman Police Department, ICAC Task Force, and Homeland Security Investigations.
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Boston Man Pleads Guilty to Firearms OffenseRead the Press Release
BOSTON – A Boston man pleaded guilty in federal court in Boston today to the unlicensed transportation of a firearm.
Kenny Romero, 24, pleaded guilty to one count of unlicensed transportation of firearms before U.S. Senior District Court Judge George A. O’Toole Jr., who scheduled sentencing for Jan. 14, 2020. Romero has been detained since his arrest on July 9, 2019.
Law enforcement officers discovered Romero to be in possession of a firearm during a vehicle stop in December 2016. A subsequent investigation revealed that the firearm, which had been used in a shooting earlier that month, was purchased in Virginia in November 2016. Agents learned that another individual purchased the firearm at Romero’s direction, and Romero subsequently transported the firearm from Virginia back to Massachusetts, where he resides.
The charge of unlicensed transportation of firearms provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Office, made the announcement today. Valuable assistance was provided by the U.S. Attorney’s Office for the Eastern District of Virginia, the ATF - Falls Church Field Office and the Boston Police Department. Assistant U.S. Attorney Anne Paruti of Lelling’s Major Crimes Unit is prosecuting the case.
Billboard Licensing Company Pays $2.85 Million to Resolve Allegations That It Defrauded the Postal ServiceRead the Press Release
DENVER -- Jason Dunn, the United States Attorney for the District of Colorado, today announced a resolution that resolves fraud allegations against All Vision LLC (“All Vision”), a company that manages a portfolio of licenses for billboards and other outdoor advertising. Under the resolution announced today, All Vision will pay $2.85 million to settle allegations that the company made false statements and improperly withheld money owed to the United States Postal Service (“U.S. Postal Service”) in connection with the company’s marketing and management of various commercial outdoor advertising licenses. The settlement is in addition to approximately $5.2 million that the company has already paid back to the U.S. Postal Service.
The U.S. Postal Service leases land to billboard companies for advertising. All Vision manages licenses for billboards and other commercial outdoor advertising in locations such as New York, Texas, Minnesota and Missouri. All Vision formerly maintained an office and conducted its accounting operations in Highlands Ranch, Colorado. In 2009 and 2011, the U.S. Postal Service entered into contracts with All Vision for All Vision to manage and market a portfolio of billboard advertising licenses with other companies. Under the contracts, All Vision was required to collect payments, including percentage rent and lump sum fee payments, from the companies. Once collected, All Vision was required to timely forward the payments, less its applicable fees, to the U.S. Postal Service.
The United States’ allegations in this matter relate to All Vision’s conduct under those contracts. The United States alleged that the U.S. Postal Service relied upon All Vision to collect and timely remit payments. Throughout the contract terms, however, All Vision misrepresented the actual amounts it had collected in various reports that it sent to the U.S. Postal Service. In addition, certain employees at All Vision knowingly withheld and failed to remit and report millions of dollars in percentage rent and lump sum fee payments owed to the U.S. Postal Service.
All Vision voluntarily repaid the U.S. Postal Service over $5.2 million in past-due amounts that the company identified through its own investigation, and has agreed to pay an additional $2.85 million to resolve the matter. All Vision also provided cooperation with the United States’ civil investigation.
The claims settled by this civil agreement are allegations. In entering into this civil settlement, All Vision did not admit liability.
“Companies entrusted with taxpayer money have an obligation to safeguard it,” said U.S. Attorney Jason Dunn. “When they fail to do so, we will aggressively seek to hold them accountable.”
“We are gratified to have contributed to this investigation and applaud the exceptional work by the investigative and legal teams for safeguarding the contracting process and overall program costs,” said Scott Pierce, Special Agent in Charge, U.S. Postal Service Office of Inspector General. “The USPS OIG will continue to seek out and aggressively investigate those who would engage in activities detrimental to the U.S. Postal Service.”
The United States was represented in this matter by Assistant United States Attorney Lila Bateman.
Beverly Man Sentenced for Sending White Powder and Purported AIDS-Infected Blood to Online Dating WebsiteRead the Press Release
BOSTON – A Beverly man was sentenced to probation today for sending a series of threatening letters to the CEO of an online dating website; one letter contained a white powder described as Anthrax and another contained a red substance described as blood infected with the AIDS virus.
Liam MacLeod, 47, was sentenced by U.S. District Court Judge Patti B. Saris to two years of probation, with the first two months to be served in a halfway house and eight months in a sober house on home confinement. The government recommended five months in prison, followed by two years of supervised release which would include five months of community or home confinement.
In June 2019, MacLeod pleaded guilty to two counts of mailing threatening communications and two counts of conveying false information concerning purported biological weapons.
Between September and December 2017, MacLeod mailed nine letters containing threatening communications and/or suspicious substances to the CEO of the online dating website OkCupid.com in Dallas, Texas. On or about Sept. 12, 2017, MacLeod mailed an envelope addressed to the CEO that contained a suspicious white powder, along with a handwritten letter that stated:
Greetings from Beverly
Ban me will ya
Welcome to the wonderful world of ANTHRAX
Expect a package within the next couple of days
It won’t be ticking but it should be interesting!
MacLeod mailed another envelope to the CEO in Dallas, on or about Sept. 14, 2017, containing a typewritten letter with the following message, amongst other text:
How’d you like what I sent you? Aww, go take a powder. Oh, the things I have in store for you! I can go on like this for years. How long can you last?
Incidentally, my father was an angel: That’s Hell’s
Angel to you. You see, we have some pull. Take for
example your vehicles. We now know who owns
what, and where each of you parks his.
Hmm, think of the possibilities!
MacLeod sent a third letter to the CEO in Dallas on or about Sept. 20, 2017. The envelope and its contents, a blank piece of paper, were both stained with a red substance consistent with blood. The next day, MacLeod mailed another letter to the CEO which identified the red substance on the previous letter as blood infected with the AIDS virus.
Between Oct. 4, 2017 and Dec. 21, 2017, MacLeod mailed five additional envelopes addressed to the CEO in Dallas, each containing threatening communications and/or suspicious substances. Each of these mailings generated a response by federal law enforcement in order to rule out the presence of active biological or chemical agents. Laboratory testing later confirmed that the substances contained in the envelopes, including the white powdery substance, did not contain hazardous materials.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, made the announcement today. The investigation was conducted by the FBI Boston’s Joint Terrorism Task Force, with assistance from the Beverly Police Department. OkCupid and its parent company were fully cooperative with the investigation. Assistant U.S. Attorney Jason A. Casey of Lelling’s National Security Unit prosecuted the case.
Belgian Citizen Sentenced for Insider TradingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that NICHOLAS ZANEN, 46, of Belgium, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 15 months of imprisonment for insider trading. Judge Thompson also ordered Zanen to pay a $6,000 fine.
According to court documents and statements made in court, Zanen was employed by Cheniere Energy, Inc. (“Cheniere”), a Houston-based energy company whose common stock traded on the New York Stock Exchange under the symbol LNG. Zanen was a vice president of trading in the Cheniere’s United Kingdom Branch and was based in London. Cheniere maintained written policies prohibiting the direct or indirect disclosure of confidential information and requiring employees to prevent the disclosure of such confidential information. In his position, Zanen had access to non-public information concerning Cheniere’s deals, financings, and other business information, and he was in possession of inside information prior to public announcements.
Between November 2011 and December 2012, Zanen disclosed Cheniere inside information to a friend, Francis J. Van Steenberge, and advised him whether to buy or sell Cheniere securities with the understanding that Van Steenberge would execute the security transactions on the basis of these instructions. Zanen and Van Steenberge generated approximately $1 million through this scheme.
Zanen also caused to be made materially false and fraudulent statements to the Financial Industry Regulatory Authority (“FINRA”) that he was unaware of the circumstances under which Van Steenberge gained knowledge of Cheniere’s business activities.
On June 4, 2014, a federal grand jury in New Haven returned an indictment charging Zanen with one count of conspiracy to commit securities fraud and three counts of securities fraud. Zanen, who was living abroad in London, Singapore and Belgium, was apprehended on April 22, 2019, in Pisa, Italy. He was extradited to the U.S. on June 13, 2019.
On August 12, 2019, Zanen pleaded guilty to one count of conspiracy to commit securities fraud. He has been detained since his arrest.
On April 4, 2014, Van Steenberge pleaded guilty to the same offense. He awaits sentencing.
In the companion case Securities and Exchange Commission v. Nicolas Zanen and Francis J. Van Steenberge, Zanen has paid the SEC a disgorgement, plus interest and penalties, totaling $832,398.45.
This investigation has been conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
U.S. Attorney Durham thanked the U.S. Department of Justice’s Office of International Affairs for its assistance in this matter, in particular former DOJ Rome Attache’ Cristina Posa.
U.S. Attorney Durham stressed that protecting the integrity of the capital markets and ensuring that individuals comply with our nation’s securities laws is a priority of the Justice Department. Individuals who believe that they have been victimized by this insider trading scheme should contact the FBI in New Haven at 203-777-6311.
Baltimore Drug Dealer Sentenced to More Than 12 Years in Federal Prison for Conspiracy to Distribute Fentanyl, Heroin, and CocaineRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Knowledge Sharpe, age 19, of Baltimore Maryland, to 12 ½ years in federal prison, followed by five years of supervised release, for conspiracy to distribute fentanyl, heroin, and cocaine, and for assaulting a federal officer.
The sentence 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; U.S. Marshal Johnny Hughes; Commissioner Michael Harrison of the Baltimore Police Department; and Anne Arundel County Police Chief Tim Altomare.
“Knowledge Sharpe brought the deadly combination of guns and drugs to the streets of Baltimore,” said U.S. Attorney Robert K. Hur. “Not only did he endanger members of his own community, but he also attacked a federal law enforcement officer. This sentence demonstrates that we will hold accountable criminals who attempt to terrorize law-abiding citizens and those who are sworn to protect them. Sharpe will serve over 12 years in a federal prison far from home, where there is no parole—ever. Please put down the gun. You’ll save a life, maybe even your own.”
According to his plea agreement, from January 2017 until July 2018, Sharpe conspired to distribute fentanyl, heroin, and cocaine as a member of the Young Finesse Kings (YFK), a drug shop that operated primarily in the German Park area of Baltimore City. During the course of the investigation, investigators from the FBI and the Baltimore Police Department obtained authority to intercept wire and electronic communications of members of the YFK drug shop and conducted physical surveillance of the YFK drug shop observing many instances of drug trafficking.
On April 11, 2018, investigators intercepted phone calls which led them to believe that Sharpe and several co-defendants were going to commit a retaliatory act of violence, after someone had shot at Sharpe’s car. Sharpe contacted his co-conspirators to get them to assist with the retaliation. Investigators immediately responded to the area where the conspirators had discussed meeting: Mount Royal Terrace and North Avenue, in Baltimore City. While in the vicinity, investigators observed a gold Nissan van occupied by up to six individuals parked near Druid Park Lake. That Nissan van was registered to an address used by one of Sharpe’s co-defendants. The van left the area before investigators were able to stop it. A short time later investigators learned that a gun was discharged in the area of 1700 North Carey Street. Investigators checked the location information of Sharpe’s cellular telephone and compared it to time that the discharging occurred. At the time of the discharging, Sharpe’s cellular telephone was at a location in the same block of Carey Street.
Shortly afterwards, investigators located the gold van in the parking lot of the Security Mall in Baltimore. A short time later, Sharpe and co-defendants Kenneth Grossman, Dana Dunnock, Anthony Whitaker, Quran Smoot, and another individual were seen exiting the mall and entering the van. Investigators surrounded the vehicle and stopped the van before it could exit the parking spot. Immediately upon opening the front passenger door, a firearm was observed on the front passenger floorboard. All occupants were detained and a search of the van showed six firearms within easy reach of all occupants. Specifically, a CM11 assault pistol with a loaded magazine was located on the front passenger-side floorboard (where Sharpe was sitting), a .32-caliber revolver loaded with 6 rounds and a .380-caliber revolver with a loaded magazine were in the rear third row cup holder and on the rear third row seat, respectively (where Grossman and the other individual were sitting), a 9mm pistol with a loaded magazine in the front center console near the driver (where Smoot was sitting), from Whitaker’s waistband area an officer recovered a .40-caliber handgun loaded with 5 rounds, and from Dunnock’s front waistband area an officer recovered a .45-caliber handgun loaded with 10 rounds and attached to a second magazine containing 9 more rounds. There was also a bag containing loose ammunition and a black ski mask located in the van. Black ski masks were also recovered from Sharpe, Whitaker, and Grossman. Sharpe admitted that he possessed a firearm in furtherance of his drug trafficking activities. At sentencing, prosecutors proved that Sharpe also made a credible threat of violence.
Sharpe also attacked an employee of the Department of Public Safety and Correctional Services (DPSCS) while he was a pretrial detainee at the Chesapeake Detention Facility, which is run by the U.S. Marshals and maintained by the DPSCS. The victim had denied Sharpe’s request for a second meal. When the victim returned to Sharpe’s housing area later, Sharpe sneaked up behind the victim, struck the victim with a closed fist to his face, and continued to strike the victim after he had fallen to the ground. Other federal detainees also struck the victim, as well as another person who had come to the victim’s aid. After the fight, which was broken up by deploying pepper spray, the two victims of the attack were treated for their injuries.
All nine defendants have pleaded guilty to their roles in the drug conspiracy or for possessing a firearm in the van with Sharpe, including Kenneth Grossman, age 29; Dana Dunnock, age 21; Quran Smoot, age 21; and Anthony Whitaker, age 24, all of Baltimore. Six defendants have been sentenced including Sharpe, Dunnock who was sentenced to 135 months in federal prison, and Whitaker who was sentenced to 13 years in federal prison.
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. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the FBI, the U.S. Marshal Service, the Baltimore Police Department, and the Anne Arundel County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christine Goo and Brandon K. Moore, who are prosecuting the case.
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Armed Drug Dealer Sentenced to 25 Years in PrisonRead the Press Release
NEWPORT NEWS, Va. – A Hampton man was sentenced today to 25 years in prison for distributing cocaine and heroin while possessing a firearm.
According to court documents, Lorenzo Golden, 35, admitted that he had agreed to distribute and distributed more than five kilograms of cocaine and more than a kilogram of heroin, including two heroin sales to law enforcement in February and March 2018. Golden took over a residence in the 400 block of East Pembroke Avenue and used the residence to distribute cocaine and heroin. In July 2018, law enforcement executed search warrants on the residence and a storage unit connected to Golden. They recovered scales, cellular phones, five firearms, ammunition, packaging materials and other items used in the sale of drugs.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Terry L. Sult, Chief of Hampton Police Division, and Anton Bell, Hampton Commonwealth Attorney, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Special Assistant U.S. Attorney Amy Cross prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:18-cr-90.
Allen Man Charged with Assault with a Dangerous WeaponRead the Press Release
United States Attorney Ron Parsons announced that an Allen, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Daniel Bull Bear, age 29, appeared before U.S. Magistrate Judge Daneta Wollmann and pleaded not guilty to the Indictment.
The maximum penalty upon conviction for each charge is 10 years in prison, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Bull Bear using a metal stand to assault a female near Allen on January 6, 2019. This assault resulted in serious bodily injury to the female.
The charges are merely accusations and Bull Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs – Office of Justice Services. Assistant U.S. Attorney Heather Sazama is prosecuting the case.
Bull Bear was released on bond pending trial. A trial date has been set for December 10, 2019.
246 Arrested as Part of Combined Law Enforcement Operation “Invictus Civitas” – Undefeatable Community - in Yakima CountyRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that a fifteen-week-long joint federal, state, local and Tribal law enforcement initiative has resulted in 246 arrests of fugitives and violent offenders in Yakima County. Fifty-four percent of the arrests were gang-related. The arrests involved a variety of criminal charges, including homicide, assault, sexual assault, extortion, kidnapping, robbery, weapons offenses, burglary, failure to register as a sex offender and narcotics violations.
Operation “Invictus Civitas” (Undefeatable Community) has been a coordinated Project Safe Neighborhoods violence reduction initiative led by the U.S. Marshal Service and the U.S. Attorney’s Office for the Eastern District of Washington. Federal, state, local and Tribal law enforcement partners reduce violent crime within Yakima, Yakima County and the Yakama Reservation by identifying and arresting violent fugitives and criminal offenders, and by targeting violent gang activity. The operation collected and utilized intelligence information leading to the systematic removal of individuals charged with committing violent crimes.
Operation “Invictus Civitas” launched on June 3, 2019. As part of this coordinated and targeted initiative, the arrests included: 9 for sexual offenses; 62 for assaults; 19 for robberies; 29 for weapons violations; 5 for homicides; 1 for kidnapping; 1 for arson; 15 for burglaries; 63 for narcotics violations; and 40 for other crimes.
In addition, Operation “Invictus Civitas” resulted in the seizure of 33 firearms, nearly 4.5 pounds of controlled substances, over $37,000 in U.S. currency, a ballistic vest, and 12 vehicles that were either stolen and recovered or seized as a result of criminal activity.
“The revitalized Project Safe Neighborhoods program is a major success,” said Attorney General William P. Barr. “It packs a powerful punch by combining advanced data with local leadership, further reducing violence in communities across the country and improving overall public safety. U.S. Attorneys continue to focus their enforcement efforts against the most violent criminals and work in partnership with federal, state, local, and Tribal police. The Justice Department’s relationships across the board have never been stronger.”
United States Attorney Hyslop said, “No violent crime is acceptable in the Eastern District of Washington. Operation ‘Invictus Civitas’ has been hugely successful. And it highlights the joint commitment, dedication, and partnership between our state, local, Tribal and federal partners in combatting violent crime and removing violent criminals and gang members from the community to face justice. I commend the outstanding work and tireless efforts of all our law enforcement partners. In addition, Maike & Associates provided tremendous data analysis and support as the Project Safe Neighborhoods research partner.”
U. S. Marshal Craig Thayer, Eastern District of Washington, commented that, “The 246 violent offenders safely arrested during Operation ‘Invictus Civitas’ are testament to the dedication and professionalism of the participating law enforcement agencies. Our communities are safer because of this success. We recognize that there are still those who are committing illegal acts against the community, and we want them to know that we are committed to protecting the community from violent crime going forward.”
Operation “Invictus Civitas” is a joint United States Marshal Service, Operation Triple Beam, Project Safe Neighborhoods (PSN) and Pacific Northwest Violent Offender Task Force initiative geared toward reducing violent crime in the Yakima region. Project Safe Neighborhoods is a national initiative that brings together federal, state, local and Tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. Yakima County, and specifically the City of Yakima, was selected as a PSN area of focus in 2018 due to its high rates of gang and gun-related violent crime. The U.S. Marshal Service designed Operation “Invictus Civitas” to initiate a community-based, comprehensive, multi-component strategy being implemented over a two-year period.
The Pacific Northwest Violent Offender Task Force (PNVOTF) is a U.S. Marshal Service sponsored partnership composed of federal, state and local law enforcement officers from Washington, Oregon and Alaska. The primary mission of the PNVOTF is to locate, arrest, and return to the justice system the most violent, most egregious federal and state fugitives. Operation “Invictus Civitas” partners include the United States Marshal Service, United States Attorney’s Office, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Yakima County Sheriff’s Office, Washington State Department of Corrections, Yakima Police Department, Union Gap Police Department, Yakama Nation Department of Public Safety, Benton County Sheriff’s Office, Kennewick Police Department, LEAD Task Force, Yakima County Prosecutors Office and Maike & Associates.
2 Manhattan Men Charged with 2010 MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of an Indictment charging JAMAL ADAMSON, a/k/a “J-Rock,” and HASAHN MURRAY, a/k/a “Sauce,” with the June 20, 2010, murder of David Moore, 23, in New York, New York. ADAMSON was arrested today and will be presented this afternoon before U.S. Magistrate Judge Ona T. Wang. MURRAY is in New York state custody and is being transferred to federal custody. This case is assigned to United States District Judge Gregory H. Woods.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Over nine years ago, David Moore was shot and killed during a gang dispute in Manhattan. Now, thanks to the outstanding work of the NYPD and the Special Agents of our Office, Jamal Adamson and Hasahn Murray have been charged for their alleged participation in that heinous crime.”
NYPD Commissioner James P. O’Neill said: “This case reflects the NYPD’s continued effort to eradicate violent street crime by targeting those most responsible. I am grateful to these hard-working investigators and our law enforcement partners for ensuring these two alleged dangerous criminals will be held to account for their alleged actions.”
According to the allegations in the Indictment unsealed in Manhattan federal court[1]:
On or about June 20, 2010, in the vicinity of East 122nd Street and Lexington Avenue in New York, New York, ADAMSON and MURRAY, both members of a gang operating in East Harlem known as the Cash Money Boys (or “CMB”) participated in the murder of David Moore, during which David Moore was shot and killed.
* * *
ADAMSON, 26, of New York, New York, and MURRAY, 25, also of New York, New York, are each charged with one count of murder in aid of racketeering, which carries a maximum sentence of life in prison, and one count of using a firearm to commit murder, which carries a maximum sentence of life in prison, and a mandatory minimum sentence of five years in prison. The maximum and minimum 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 NYPD and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Maurene Comey, Jacob Warren, and Tara LaMorte 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 below constitute only allegations, and every fact described should be treated as an allegation.
18 Members of International Fraud and Money Laundering Conspiracy Charged in Manhattan Federal CourtRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Troy Miller, Director, Field Operations, New York, U.S. Customs and Border Protection (“CBP”), and James P. O’Neill, the Police Commissioner for the City of New York (“NYPD”), today announced the unsealing of an indictment and two superseding indictments charging 18 defendants with participating in an international conspiracy to commit a variety of offenses, including access device fraud, wire fraud, bank fraud, and aggravated identity theft.
Defendants NIKOLAOS LIMBERATOS, a/k/a “Nicu Limberto,” CRISTIAN COSTEA, a/k/a “Momo,” THEOFRASTOS LYMBERATOS, ANDREW ELIOPOULOS, PETER SAMOLIS, KELLY KARKI LAM, and IULIANA MIHAILESCU were arrested this morning and will be presented in federal court in Manhattan before U.S. Magistrate Judge Ona T. Wang later today. Defendants MIRCEA CONSTANTINESCU, a/k/a “Sobo,”ALIN HANES CALUGARU, IONELA CONSTANTINESCU, a/k/a “Pitica,” and GEORGE SERBAN were also arrested this morning and will be presented in federal court in Miami before U.S. Magistrate Judge Lauren F. Louis later today. Defendant FLORIAN CLAUDIU MARTIN, a/k/a “Florin Claudiu,” a/k/a “Johnny Ion,” a/k/a “Jane Hotul,” a/k/a “Petru Andrioaie,” a/k/a “Petru Andrioane,” was arrested this morning in Cabo San Lucas, Mexico, and defendant RAUL IONUT VIDRASAN, a/k/a “Michu,” a/k/a “The Boy,” was arrested this morning in Perugia, Italy. Defendants VALENTIN PETRESCU, a/k/a “Gico Cosmin Giscan,” a/k/a “Zoltan Pruma,” DRAGOS DIACONU, MADLIN ALEXANDRU ANCA, a/k/a “Mateo Fernandez Alejandro,” and CRISTIAN ULMANU, a/k/a “Boris Moravec,” are currently in custody on other charges and will be transferred to federal custody in New York and presented at a later date. The case has been assigned to U.S. District Judge Laura Taylor Swain.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, the defendants participated in a wide-ranging international ATM skimming and money laundering operation, using their technological know-how to steal tens of millions of dollars from financial institutions and individual victims. Thanks to the FBI, CBP, and the NYPD, the defendants are in custody and facing felony charges for their alleged offenses.”
FBI Assistant Director William F. Sweeney Jr. said: “An extremely frustrating thing to experience, you grab cash from an ATM but then find out your bank information was stolen and your account drained. The scheme detailed here cost victims money, time, and effort to get their finances returned and their identities restored, which can be an infuriating long process. The FBI New York Cyber Crimes Task Force and our law enforcement partners have worked exhaustively to find the members of this criminal organization, and the arrests and charges are a testament to their hard work stopping these thieves from creating more havoc for anyone trying to access their hard-earned money.”
CBP Director of New York Field Operations Troy Miller said: “This case serves as a great example of collaborative law enforcement efforts to combat international debit card schemes. U.S. Customs and Border Protection in coordination with our partners at FBI and the NYPD will continue to work tirelessly to ensure that criminals associated with transnational criminal organizations are brought to justice.”
NYPD Commissioner James P. O’Neill said: “The NYPD and its law enforcement partners are committed to dismantling criminal enterprises that leverage attacks against our cyber infrastructure. We comprehensively confront everything from highly-sophisticated transnational groups, like this one, to those criminals who exploit our citizens with cyber-enabled scams. I want to thank our federal partners and NYPD detectives for their coordination and tireless efforts in bringing this important case.”
According to the allegations in the Indictment and Superseding Indictments[1] unsealed today in Manhattan federal court:
From 2014 until September 2019, FLORIAN CLAUDIU MARTIN, a/k/a “Florin Claudiu,” a/k/a “Johnny Ion,” a/k/a “Jane Hotul,” a/k/a “Petru Andrioaie,” a/k/a “Petru Andrioane,” ALEX DONATI, RAUL IONUT VIDRASAN, a/k/a “Michu,” a/k/a “The Boy,” MIRCEA CONSTANTINESCU, a/k/a “Sobo,” NIKOLAOS LIMBERATOS, a/k/a “Nicu Limberto,” CRISTIAN COSTEA, a/k/a “Momo,” ALIN HANES CALUGARU, IONELA CONSTANTINESCU, a/k/a “Pitica,” THEOFRASTOS LYMBERATOS, ANDREW ELIOPOULOS, VALENTIN PETRESCU, a/k/a “Gico Cosmin Giscan,” a/k/a “Zoltan Pruma,” PETER SAMOLIS, KELLY KARKI LAM, GEORGE SERBAN, DRAGOS DIACONU, MADLIN ALEXANDRU ANCA, a/k/a “Mateo Fernandez Alejandro,” CRISTIAN ULMANU, a/k/a “Boris Moravec,” and IULIANA MIHAILESCU participated in a transnational organization that engaged in what is colloquially referred to as “ATM skimming” (the “Skimming Organization”). The Skimming Organization unlawfully obtained victim accountholders’ debit card account information by using advanced technological devices to surreptitiously record the debit card numbers and personal identification numbers at automatic teller machines (“ATMs”), and then manufacturing counterfeit and fraudulent debit cards that bore the victim accountholders’ account information. The Skimming Organization’s members then used those cards to fraudulently withdraw cash from victims’ bank accounts.
Certain of the defendants directed, or worked in, teams that the Skimming Organization deployed across the United States in order to carry out ATM skimming attacks, casing ideal locations for the attacks, installing skimming devices on ATMs, removing those devices, and cashing out large numbers of fraudulent debit cards manufactured as a result of the skimming operations. Other defendants assisted in receiving packages containing skimming devices or component parts that were shipped from other parts of the U.S. and from abroad. Other defendants assisted in engineering the skimming devices that the Skimming Organization used. Still other defendants laundered the proceeds of the skimming attacks through bank accounts, properties, businesses, and the transportation of bulk cash.
The defendants carried out hundreds of ATM skimming operations across the U.S., including in New York and at least 17 other states. The scheme defrauded financial institutions and individual victims of more than $20 million.
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Each defendant is charged with one count of conspiracy to commit access device fraud, which carries a maximum sentence of 7 ½ years in prison; one count of conspiracy to commit wire and bank fraud, which carries a maximum sentence of 30 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison, consecutive to any other sentence imposed. FLORIAN CLAUDIU MARTIN, a/k/a “Florin Claudiu,” a/k/a “Johnny Ion,” a/k/a “Jane Hotul,” a/k/a “Petru Andrioaie,” a/k/a “Petru Andrioane,” MIRCEA CONSTANTINESCU, a/k/a “Sobo,” NIKOLAOS LIMBERATOS, a/k/a “Nicu Limberto,” CRISTIAN COSTEA, a/k/a “Momo,” ALIN HANES CALUGARU, and KELLY KARKI LAM are also charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. FLORIAN CLAUDIU MARTIN, a/k/a “Florin Claudiu,” a/k/a “Johnny Ion,” a/k/a “Jane Hotul,” a/k/a “Petru Andrioaie,” a/k/a “Petru Andrioane” is also charged with two counts of bank fraud, each of which carry a maximum sentence of 30 years in prison. ALEX DONATI is also charged with one count of access device fraud, which carries a maximum sentence of 10 years in prison.
The statutory maximum and minimum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. A chart with the defendants’ ages, places of residence, and nationalities is below.
Mr. Berman praised the outstanding investigative work of the FBI, CBP, and the NYPD, and thanked the United States Postal Inspection Service, INTERPOL-Rome, INTERPOL-Mexico City, and Mexico’s Agencia de Investigación Criminal and Instituto Nacional de Migración for their assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Elizabeth A. Hanft, Daniel M. Loss, Samuel P. Rothschild, and Robert B. Sobelman 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.
Defendant
Age
Place of Residence
Nationality
FLORIAN CLAUDIU MARTIN,
a/k/a “Florin Claudiu,”
a/k/a “Johnny Ion,”
a/k/a “Jane Hotul,”
a/k/a “Petru Andrioaie,”
a/k/a “Petru Andrioane,”
44
Cabo San Lucas, Mexico
Romania
ALEX DONATI
51
Cabo San Lucas, Mexico
Romania
RAUL IONUT VIDRASAN,
a/k/a “Michu,” a/k/a “The Boy”
27
Perugia, Italy
Romania
MIRCEA CONSTANTINESCU, a/k/a “Sobo”
44
Cooper City, Florida
Romania
NIKOLAOS LIMBERATOS, a/k/a “Nicu Limberto”
53
Deer Park, New York
Greece
CRISTIAN COSTEA, a/k/a “Momo”
44
Queens, New York
Romania
ALIN HANES CALUGARU
39
Sunny Isles, Florida
Romania
IONELA CONSTANTINESCU, a/k/a “Pitica”
35
Cooper City, Florida
Romania
THEOFRASTOS LYMBERATOS
36
Queens, New York
United States
ANDREW ELIOPOULOS
34
Queens, New York
United States
VALENTIN PETRESCU, a/k/a “Gico Cosmin Giscan,” a/k/a “Zoltan Pruma”
32
Russellville, Arkansas
Romania
PETER SAMOLIS
30
Queens, New York
United States
KELLY KARKI LAM
42
New York, New York
United States
GEORGE SERBAN
32
Miami, Florida
Romania
DRAGOS DIACONU
41
Nashville, Tennessee
Romania
MADLIN ALEXANDRU ANCA, a/k/a “Mateo Fernandez Alejandro”
22
Nashville, Tennessee
Romania
CRISTIAN ULMANU, a/k/a “Boris Moravec”
54
Russellville, Arkansas
Romania
IULIANA MIHAILESCU
42
Queens, New York
Romania
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and Superseding Indictments, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
149 Arrested During Joint Law Enforcement Initiative in the Golden Triangle AreaRead the Press Release
A six-week joint federal, state, and local law enforcement initiative has resulted in the arrests of 149 individuals in North Mississippi on a variety of criminal charges, including violent crimes, drug crimes and gang related activities. “Operation Triple Beam,” a U.S. Marshals led initiative brought together federal, state, and local law enforcement partners in an effort to reduce crime in the Golden Triangle area by identifying and arresting violent fugitives, targeting violent gang activity, and collecting intelligence to allow for the systematic removal of individuals who are responsible for committing crimes in North Mississippi.
In addition to the arrests, Operation Triple Beam resulted in the seizure of approximately $65,820 worth of narcotics and narcotics related proceeds. Danny McKittrick, U.S. Marshal for the Northern District of Mississippi, and Chad Lamar, U.S. Attorney for the Northern District of Mississippi, made the announcement on Wednesday in Columbus, together with their federal, state and local law enforcement partners.
Operation Triple Beam commenced in the Golden Triangle area on July 15, 2019, and concluded on August 30, 2019. As a part of the initiative, approximately 50 gang members were arrested or validated by law enforcement. In addition, 155 registered sex offenders living in Northeast Mississippi and the Golden Triangle area were checked for compliance with sex offender registration requirements. Compliance checks were also conducted on eight moderate and high-risk federal and state probationers.
The arrests, seizures and compliance checks occurring as part of the Operation Triple Beam initiative resulted from the combined efforts of a half dozen local law enforcement agencies across three counties in North Mississippi, along with State and Federal law enforcement partners. Law enforcement agencies participating in the Operation Triple Beam initiative included: U.S. Marshal’s Service; U.S. Attorney’s Office; U.S. Probation; U.S. Customs and Border Protection Air and Marine Unit; Bureau of Alcohol Tobacco and Firearms; Mississippi Bureau of Narcotics; Mississippi Highway Patrol; Mississippi Bureau of Investigation; Mississippi Department of Corrections; Mississippi Air National Guard; West Point Police Department, Lowndes County Sheriff’s Department; Columbus Police Department; Clay County Sheriff’s Department; Oktibbeha County Sheriff’s Department; and the Starkville Police Department.
The use and sharing of investigative resources and the multi-agency partnerships that were crucial to the success of Operation Triple Beam as a whole are key components of the Project Safe Neighborhoods (PSN) Program, the Department of Justice’s gun violence reduction initiative. PSN began in 2002 under President George W. Bush, continued under President Obama, and was reinvigorated in October of 2017 during President Trump’s administration.
As with Operation Triple Beam, PSN focuses on reducing violent crime and making communities safer through partnerships and collaborative efforts between federal, state and local law enforcement and community partners. The PSN program in the Northern District of Mississippi has long been a priority for the U.S. Attorney’s Office and a primary means of combatting violent gun crime. Although it originally focused in the areas of Clarksdale and Greenville, Mississippi, the U.S. Attorney’s Office expanded the program in 2017 to reach other areas of the District, including Columbus and Lowndes County.
U.S. Attorney General William Barr praised the efforts and partnerships that are a part of the District’s PSN Initiative. “The revitalized Project Safe Neighborhoods program is a major success,” said Attorney General William P. Barr. “It packs a powerful punch by combining advanced data with local leadership, further reducing violence in communities across the country and improving overall public safety. U.S. Attorneys continue to focus their enforcement efforts against the most violent criminals and work in partnership with federal, state, local, and tribal police. The Justice Department’s relationships across the board have never been stronger.”
U.S. Marshal McKittrick and U.S. Attorney Lamar announced the results of Operation Triple Beam on Wednesday in conjunction with the two year anniversary of the reinvigoration and renewal of the PSN program.
U.S. Marshal McKittrick and Chief Deputy Jeff Woodfin praised the collaboration between the federal, state and local law enforcement agencies that took part in the operation. “This initiative gave the public a small glimpse of what law enforcement carries out on a daily basis. We couldn’t be more proud of the men and women who worked diligently during this highly effective operation,” McKittrick remarked. “This all-hands-on-deck approach was pivotal in the success of this operation, which will make a difference in our communities. Some of these cases will be prosecuted in federal court and some in state court. There are additional ongoing investigations that may lead to future arrests, all of which are important in the pursuit of dismantling the criminal element in the Northern District of Mississippi.”
U.S. Attorney Chad Lamar thanked the many law enforcement agencies who participated in Operation Triple Beam and praised the results. “Columbus and the larger Golden Triangle area are focus points for our Project Safe Neighborhoods program and this Operation Triple Beam is a prime example of what law enforcement can accomplish when local, federal, and state partners work together,” Lamar stated. “By running operations like Operation Triple Beam that rely on partnerships, intelligence-driven data and targeted enforcement, we can and will keep make our neighborhoods safer for all citizens.”
110 Gang Syracuse RICO Trial Ends in ConvictionRead the Press Release
SYRACUSE, NEW YORK – Following an eight-day trial, a federal jury in Syracuse convicted Anthony Hopper, age 32, of Syracuse, of violating the Racketeering Influenced Corrupt Organizations Act (RICO), announced United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Syracuse Police Chief Kenton Buckner. The RICO conviction included a finding that Hopper was guilty of a murder. The jury acquitted on another murder allegation contained in the RICO indictment and on a charge of discharge of a firearm during a crime of violence. The other 13 men charged in the same indictment as Hopper have all pled guilty and are awaiting sentencing.
During the trial, jurors heard testimony from members of the 110 Gang and others about the 110 Gang’s robberies, drug trafficking, and illegal possession of firearms. They also heard from witnesses who described how the 110 Gang retaliated against other gangs for shootings and murders.
“No one should have to live in a neighborhood controlled by thugs,” said U.S. Attorney Grant Jaquith. “Thanks to the dedicated work of the Syracuse Police Department, the FBI, and law enforcement agencies in Onondaga County, another 110 Gang member will now be held responsible for killing a person in our community. We will never waver in our resolve to prosecute violent gang members.”
Syracuse Police Chief Kenton Buckner, said, “The Syracuse Police Department would like to thank United States Attorney Grant C. Jaquith for his partnership in the indictment of 14 men, members and known associates of the “110” Gang, on Racketeering charges. The convictions of these individuals culminates the efforts of our local, state and federal partners. This is another example of how working together is beneficial to our entire community. We look forward to continuing in this partnership.”
“Anthony Hopper chose to terrorize his community through violence and fear on behalf of the 110 Gang, and now he will face the consequences of those actions,” said James Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI). “The FBI and our partners will continue to aggressively pursue gangs wherever they surface and are committed to making Syracuse and the surrounding communities a safe place for our citizens.”
Sentencing is scheduled for June 16, 2020 in Syracuse before Senior United States District Judge Frederick J. Scullin, Jr. Hopper faces a maximum sentence of life imprisonment, based upon the jury’s finding that he was guilty of committing a murder. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the Federal Bureau of Investigation (FBI), the Syracuse Police Department, and the Gang Violence Task Force, which consists of members of the Syracuse Police, the FBI, the U.S. Drug Enforcement Administration (DEA), the U.S. Marshals Service, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New York State Police, the New York State Department of Corrections, the New York State Attorney General, and the Onondaga County District Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorneys Nicolas Commandeur and Kristen Grabowski.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
"ThePedoMan" Sentenced to Prison for Possession of Child PornRead the Press Release
Athens, Georgia— A Walton County, Georgia man, known as “ThePedoMan” on child pornography websites, was sentenced in federal court to 41 months in prison, announced Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. John McCurdy, a/k/a John McCurdy-Walker, 27, of Loganville, Georgia previously pleaded guilty to the indictment charging him with one count possession of child pornography, and was sentenced on October 9, 2019 by U.S. District Judge C. Ashley Royal. There is no parole in the federal system.
“Law enforcement at every level remain relentless in tracking down and arresting the makers and the possessors of child pornography in Georgia, and we will continue to prosecute these criminals to the fullest extent allowed by the law,” said U.S. Attorney Charlie Peeler. “Predators who view child pornography are victimizing the innocent and directly fueling abhorrent abuse. I want to thank the FBI and the GBI for their work protecting Georgia children.”
“The victimization of a child doesn’t end when that child’s pornographic images are recorded. Every time an individual like McCurdy possesses those images and views them for personal gratification, that child is victimized again, and again,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will always make it a priority to protect our most vulnerable assets, our children.”
“The GBI and the Georgia ICAC Task Force will continue to diligently work with our local, state and federal partners to protect our children,” said Debbie Garner, Special Agent in Charge and Commander, Georgia ICAC Task Force. “The committed network of law enforcement officers that investigate the possession, distribution and production of online child sexual abuse material is dedicated to finding and prosecuting those who sexually exploit our children.”
According to the stipulation of fact entered in court, at or around December 3, 2015, Mr. McCurdy used a computer or interactive computer service to access, possess and view videos and still photos of between 150 and 300 images of child pornography, including images featuring prepubescent minors. According to information presented in court, Mr. McCurdy admitted that he has been looking at child pornography since he was 14-years-old and that he accessed child pornography through the dark web under the user name “ThePedoMan”. Mr. McCurdy’s defense argued for a downward variance on the federal sentencing guidelines recommended for the charge. That request was denied by the Court.
The case was investigated by the FBI and the Georgia Bureau of Investigation ICAC Task Force. Assistant U.S. Attorney Lyndie M. Freeman prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Wednesday 9 October 2019
Wilson Man Indicted on Ammunition ChargeRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned an indictment charging JOHN DAVID JONES, age 37, of Wilson, with possession of ammunition as a convicted felon.
As alleged in open court during JONES’ detention hearing on October 9, 2019, on January 14, 2019 North Carolina State Highway Patrol Trooper Daniel Harrell conducted a traffic stop on a vehicle JONES was driving. The defendant fled during the initial stop, firing several rounds into the windshield of Trooper Harrell’s vehicle, striking Trooper Harrell in the face. JONES then fled the scene. Investigators recovered shell casings from the scene of the shooting, and the defendant’s DNA was found on a recovered shell casing.
At the detention hearing it was determined that JONES would remain in custody until the disposition of the charges against him. If convicted, JONES would face a maximum of 10 years imprisonment, a $250,000 fine, and a term of up to three years supervised release following any term of imprisonment.
The charges and allegations contained in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
This case is part of the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative, CLICK HERE .
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), United States Marshals Service, North Carolina State Highway Patrol, North Carolina State Bureau of Investigation, Wilson County Sheriff’s Office, Nash County Sheriff’s Office, and Greenville Police Department investigated this matter. Assistant United States Attorney Chad E. Rhoades is prosecuting the case for the government.
Wilmington Gang Members Receives 11 Years in Federal PrisonRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that in federal court, United States District Judge Louise W. Flanagan sentenced JAQUARIES WASHINGTON, 20, of Wilmington North Carolina to 132 months imprisonment, followed by 3 years of supervised release.
WASHINGTON was named in an indictment filed on February 13, 2019 charging him with possession with the intent to distribute a quantity of heroin. On June 20, 2019, WASHINGTON pled guilty to the indictment.
According to the investigation, on November 27, 2018, the New Hanover County Sheriff’s Office Vice Unit ordered a quantity heroin from WASHINGTON to be delivered to a hotel room in Wilmington. Upon arriving to the hotel room, WASHINGTON was arrested for possession of heroin. After WASHINGTON’s arrest, law enforcement searched the car in which WASHINGTON arrived and found a juvenile in the backseat and a loaded pistol on the floorboard.
According to law enforcement, WASHINGTON was a validated gang member. WASHINGTON was prohibited from associating with other gang members of his set because of a North Carolina State Civil Gang Injunction at the time of his arrest.
This case is part of an FBI-led Organized Crime Drug Enforcement Task Force (OCDETF) operation named “Dodge Ball.” This operation is focused on members of the Nine Trey sect of the United Blood Nation, a violent gang in Wilmington, North Carolina involved in the distribution of heroin, possession of firearms and associated violence. This is a joint investigation by the FBI Safe Streets Task Force (Gang Unit), Bureau of Alcohol, Tobacco, Firearms and Explosives, Wilmington Police Department, and New Hanover Sheriff’s Office. The FBI Safe Streets Task Force and ATF utilize resources from federal, state, and local law enforcement in order to efficiently and effectively target and combat criminal gangs and drug trafficking organizations operating in coastal southern North Carolina. A key component of federal task force’s success involves the use of task force officers from local law enforcement who have direct knowledge of the criminal gang activity in their areas.
This case is also part of the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Federal Bureau of Investigation Safe Streets Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives, New Hanover County Sheriff’s Office, Wilmington Police Department, and North Carolina State Bureau of Investigation investigated this case. Assistant United States Attorney Timothy Severo prosecuted the case on behalf of the government.
Wife of Ponzi Scheme Perpetrator Pleads Guilty to Federal Charge for Conspiring to Remove and Conceal Assets in Violation of Court OrdersRead the Press Release
Baltimore, Maryland – Amanda Mahlstedt Merrill, age 30, of Towson, Maryland, pleaded guilty today to the federal charge of conspiracy to remove property to prevent seizure, obstruct justice, and disobey court orders.
The guilty plea 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; and Special Agent in Charge Robert W. Manchak of the Federal Housing Finance Agency, Office of Inspector General.
“This prosecution demonstrates our commitment to the integrity of the judicial process. When the district court enters an order in a case, we expect the affected persons to abide by the order, not conspire to remove and hide assets,” said U.S. Attorney Robert K. Hur. “We will prosecute those, like Amanda Merrill, who hide assets which are subject to seizure, who obstruct justice, and who attempt to keep ill-gotten gains for their own benefit rather than restoring them to the victims of fraud.”
According to her plea agreement, on September 11, 2018, Amanda Merrill’s husband, Kevin Merrill, was indicted on federal charges of conspiracy to commit wire fraud, identity theft, money laundering conspiracy, and money laundering, in connection with a $394 million Ponzi scheme. The indictment included a forfeiture allegation for $39 million, six real estate properties, 25 cars, a boat, an interest in an aircraft, an insurance policy, and jewelry. The properties to be forfeited included the Merrills’ residence in Towson and a home on Spyglass Lane in Naples, Florida. On September 13, 2018, the Securities and Exchange Commission (SEC) brought a civil enforcement action against Kevin Merrill, other persons and entities, and Kevin Merrill’s companies. The Court issued a temporary restraining order freezing assets and granting other emergency relief and appointed a temporary receiver. Anyone receiving notice of the receivership order who possessed property, business books, records, accounts, or assets of the receivership parties was directed to provide those items to the receiver.
On September 18, 2018, Kevin Merrill was arrested at his residence in Towson and agents seized jewelry, his watch collection, cars, and over $520,000 in cash, mostly from a safe. Kevin Merrill was subsequently ordered to be detained pending trial as a risk of flight and a risk of obstruction of justice. FBI Special Agents provided Amanda Merrill with a receipt of items taken and asked her to disclose any information to assist agents in locating items not collected at the residence. Amanda Merrill was counseled by the FBI agents to be completely truthful in her answers and was warned against attempting to hide or move assets. Amanda Merrill’s counsel was also provided with a copy of the restraining order and the receivership order.
Nevertheless, beginning on October 3, 2018, Amanda Merrill redeemed the points on an American Express business credit card belonging to Kevin Merrill, even though she was not an authorized user. Amanda Merrill received 127 gift cards worth $26,075 for retail businesses such as Target, Home Depot, Nordstrom, Sephora, and Starbucks.
On October 13, 2018, Amanda Merrill and another individual traveled by plane to Naples, Florida, to the Spyglass Lane property, which the Merrills had purchased earlier that year for $10 million. The Merrills were captured on several recorded jail calls that day discussing Amanda Merrill’s trip to the Florida property, which they referred to in coded language as “the restaurant.” On the recorded jail calls, Kevin and Amanda Merrill discussed how to open the safe at the property. Amanda Merrill removed cash and other items from the home, which she placed into her purse, two large suitcases, and a carry-on bag. She told the other individual who accompanied her on the trip that she intended to tell her attorney that she had found the safe unlocked and empty. Video footage from BWI Airport security for October 13, 2018 shows Amanda Merrill returning from Florida rolling a carry-on bag and holding a large purse. Video footage revealed that Amanda Merrill also retrieved two large suitcases from the baggage carousel. American Express statements for Kevin Merrill’s business card (for which Amanda Merrill was not an authorized user) also show the purchase of plane tickets for Amanda Merrill and her companion, and payment for a rental car. Amanda Merrill’s American Express statement shows two airline charges of $75 each for two pieces of luggage, each of which was over the 50-pound limit, for the trip from Ft. Myers, Florida to BWI.
On October 30, 2018, counsel for Amanda Merrill e-mailed a letter directed to “Government, SEC, and Receiver,” which stated, among other things, that Amanda Merrill and her companion had gone to the house in Naples, Florida and “the unlocked safe at the house was empty,” and that they had removed six boxes of children’s clothing and personal items. The statement was false because Amanda Merrill misrepresented what had happened in Florida to her counsel and omitted the cash, the over-weight-limit suitcases, and the carry-on luggage in talking with her attorney.
In early November 2018, FBI Special Agents executed search warrants at the Merrill homes in Towson and Naples. In the Towson home, agents discovered approximately $15,378 in cash, $8,878 in a purse in Amanda Merrill’s bedroom, with the remainder in a closet drawer. Agents also located the two large suitcases, which were still tagged from the trip, but were empty, as well as the six boxes of children’s clothing and personal items in the Towson home. In the Florida home, agents used the transcription of the recorded jail call to gain access to the safe, which was empty.
According to the plea agreement, at sentencing the government will recommend that Amanda Merrill serve 12 months on electronic home monitoring with work release and restitution. U.S. District Judge Richard D. Bennett has scheduled sentencing for January 22, 2020 at 3:00 p.m.
Kevin Merrill, age 54, of Towson, previously pleaded guilty to conspiracy and wire fraud arising from his role in a $394 million investment fraud scheme that operated from 2013 through September 2018. Merrill faces a maximum of 40 years in prison for the wire fraud conspiracy and for wire fraud, as well as a possible fine of $500,000, or twice the gross gain, at his sentencing hearing scheduled to begin on October 10, 2019.
United States Attorney Robert K. Hur commended the FBI in Baltimore and Tampa; the Federal Housing Finance Agency, Office of the Inspector General; and the SEC for their work in this investigation. Mr. Hur thanked Assistant U.S. Attorneys Joyce K. McDonald and Martin J. Clarke, who are prosecuting the criminal case.
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Wichita Man Sentenced in Commercial RobberiesRead the Press Release
WICHITA, KAN. – A Wichita man who robbed three stores was sentenced Tuesday to 84 months in federal prison, U.S. Attorney Stephen McAllister said.
Willie Smith, 39, Wichita, Kan., pleaded guilty to one count of robbery. In his plea, he admitted that in 2018 he robbed the QuikTrip store at 1532 S. Seneca. He showed the clerk what appeared to be a revolver before demanding money. Later, when investigators searched his apartment, they found a black BB gun they believe Smith used in three robberies.
At sentencing, the court also took into account as relevant conduct two other robberies Smith committed in 2018. Smith robbed the Express Mart at 565 S. Market. During the robbery, he showed the clerk what appeared to be a revolver. Smith also robbed Pete’s Liquor at 332 W. Harry. During the robbery, he pulled out what appeared to be a revolver.
McAllister commended the Wichita Police Department and Assistant U.S. Attorney David Lind for their work on the case.
Western Iowa Methamphetamine Traffickers SentencedRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced three sentences for Conspiracy to Distribute Methamphetamine imposed by Chief District Court Judge John Jarvey on October 8, 2019. Joseph A. Brown, a 35 year-old Omaha, Nebraska, resident, was sentenced to ten years in prison, followed by five years of supervised release. Christopher M. Rouse, a 31 year-old Omaha, Nebraska, resident was sentenced to twenty years in prison, followed by five years of supervised release. Bernave Navarrete, a 28 year-old resident of Council Bluffs, Iowa was sentenced to twenty years in prison, followed by five years of supervised release.
The convictions were the result of a lengthy investigation by Iowa Division of Narcotics Enforcement and the Federal Bureau of Investigation Safe Streets Task Force into methamphetamine trafficking in Western Iowa. The investigation revealed that methamphetamine was being brought into the Omaha, Nebraska, area from Mexico, and then transported to various locations in Nebraska and Western Iowa for distribution.
As part of this investigation, the following individuals were already sentenced to prison: Jackie Thielen, ten years; Brandy Kumpula, eight years; Chase Richard, fifteen years; Jessica Snavely, ten years; and William LaBenz, five years. The sentencing hearings for Omar Martinez, Laura Rausch-Anderson, Colby Dunn and Manda May Rowell are still pending.
This matter was investigated by Iowa Division of Narcotics Enforcement, Federal Bureau of Investigation’s Safe Streets Task Force, Omaha Police Department, Southwest Iowa Narcotics Task Force, Council Bluffs Police Department, Harlan, Iowa Police Department and the Shelby County Sheriff’s Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.