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Tuesday 20 August 2019
Tazewell County Man Sentenced to More Than 13 Years in Prison for Using Facebook to Solicit, Receive Child PornographyRead the Press Release
PEORIA, Ill. – A Tazewell county man, Eric Ingram, 31, of Washington, Ill., was sentenced today to more than 13 years (160 months) in prison for receiving child pornography using Facebook. In sentencing Ingram, U.S. District Judge Michael M. Mihm also ordered that Ingram remain on supervised release for eight years following his release from incarceration. Ingram will be required to register as a sex offender.
On Dec. 4, 2018, Ingram pleaded guilty to the charge. According to court documents, on Oct. 4, 2018, law enforcement officers with the Washington Police Department and U.S. Immigration and Customs Enforcement Homeland Security Investigations executed a search warrant at Ingram’s residence in Washington, Ill., and seized various items of electronic media.
According to court records, in September 2018, Facebook, Inc. notified Washington Police Department officials of messages between Ingram and a 15-year-old minor child that contained sexually explicit conduct. Facebook provided information that Ingram appeared to be soliciting the content from the minor victim. Furthermore, it appeared that Ingram lived in close proximity to the minor victim and had used Facebook Messenger to discuss meeting the minor in person. The minor victim was interviewed and confirmed that Ingram requested she perform sexually explicit conduct and take visual depictions of that conduct to send to him on Facebook.
Ingram has remained in the custody of the U.S. Marshals Service since his arrest on these charges on Oct. 4, 2018.
Assistant U.S. Attorney Katherine Legge prosecuted the case, which was investigated by the Washington Police Department and U.S. Immigration and Customs Enforcement Homeland Security Investigations.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Sussex County Man Charged with Unlawfully Possessing ArsenalRead the Press Release
NEWARK, N.J. – A Sussex County, New Jersey, has been charged with possessing an arsenal of weapons and ammunition, along with white supremacist and racist propaganda, U.S. Attorney Craig Carpenito announced today.
Joseph Rubino, 57, of Lafayette Township, New Jersey, is charged by complaint with one count each of possession with intent to distribute methamphetamine, possession of firearms in furtherance of a drug-trafficking crime, and possession of firearms by a convicted felon. Rubino will appear in Newark federal court at a date to be determined.
According to documents filed in this case and statements made in court:
On July 24, 2019, following a motor vehicle accident, officers with the N.J. State Police observed numerous weapons and ammunition inside Rubino’s crashed vehicle. After executing court-authorized warrants to search Rubino’s vehicle and residence, law enforcement recovered from Rubino’s car and house the following:
- Intratec Arms Model TEC-DC9 semi-automatic assault handgun;
- Cobray Arms Mac-11 9mm semi-automatic assault pistol with a high-capacity magazine;
- Keltec CMR30 .22 caliber semi-automatic rifle loaded with 16 .22 caliber hollow-point cartridges;
- High Standard Derringer .22 caliber double-barrel handgun;
- Polymer 80 9mm semi-automatic handgun;
- Ithaca M-66 20-gauge single shotgun;
- Remington Model 700 .223 caliber bold action rifle with scope;
- Thompson Center .50 caliber muzzle-loading rifle with scope;
- Remington Model 870 Wingmaster 12-gauge pump shotgun;
- New England Firearms 20-gauge single shot shotgun;
- Remington Model 760 .300 Savage pump rifle;
- Glenfield Mod 60 .22 LR caliber semi-automatic rifle;
- Two sawed-off double-barrel shotgun barrels;
- Several high-capacity magazines;
- Numerous silencers;
- An assault rifle scope;
- A grenade launcher;
- A ballistics vest; and
- Numerous additional ammunition of various calibers.
In addition to the firearms and ammunition, law enforcement recovered approximately 70 grams of methamphetamine, seven kilograms of marijuana, and 200 marijuana vape cartridges from Rubino’s house.
Rubino was also in possession of a box containing clothing and bumper stickers with “SS Bolts,” which are common white supremacist and neo-Nazi symbols, as well as a document entitled “N****r Owner’s Manual,” containing racist material and purporting to be an instruction manual for owning a slave.
U.S. Attorney Carpenito credited members of the N.J. State Police, under the direction of Col. Patrick J. Callahan; and special agents of the ATF, under the direction of Special Agent in Charge Charlie J. Patterson in Newark with the investigation leading to the charges. He also thanked the Warren County Prosecutor’s Office, under the direction of Prosecutor Richard T. Burke, and the Sussex County Prosecutor’s Office, under the direction of Prosecutor Francis A. Koch for their assistance.
The count of possession of methamphetamine with intent to distribute is punishable by a maximum of 40 years in prison; the count of possession of a firearm by a convicted felon is punishable by a maximum of 10 years in prison; and the count of possession of a firearm in furtherance of a drug-trafficking crime is punishable by a maximum of life in prison.
The case is being prosecuted by Assistant U.S. Attorney Vera Varshavsky of the Organized Crime and Gangs Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until convicted.
St. Louis Man Pleads Guilty for His Involvement in a CarjackingRead the Press Release
St. Louis, MO – Antonio Ball, 21, St. Louis, MO, pleaded guilty to one felony count of carjacking and one felony count of brandishing a firearm in furtherance of a crime. Ball appeared today before U.S. District Judge Ronnie L. White who accepted his plea and set his sentencing date for November 20, 2019.
According to the plea agreement, on May 19, 2018, the victim stopped at the Elite Market on North Broadway in a rental vehicle. Ball approached the victim with a handgun and demanded the car keys. When the victim complied, Ball and two other males jumped into the vehicle and drove off. Ball was later arrested by the St. Louis Metropolitan Police Department.
Carjacking carries a maximum penalty of 20 years in prison and a fine of $250,000. Brandishing a firearm in furtherance of a crime carries a penalty of not less than 7 years nor more than life and a fine of $250,000. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Saint Louis Metropolitan Police Department. Assistant United States Attorney Tom Mehan is handling the case.
South Jersey Woman Sentenced to Two Years in Prison for Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – An Ocean County, New Jersey, woman was sentenced today to 24 months in prison for defrauding New Jersey state health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito announced.
Kristie Masucci, 37, of Cedar Run, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging her with conspiracy to commit health care fraud. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Compounded medications are supposed to be specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
From January 2015 through February 2016, Masucci served as a recruiter in the conspiracy and persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, identified in the information as the “Compounding Pharmacy.” The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.
The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications. An entity referred to in the information as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey for the amounts paid.
Masucci and conspirators working under her recruited public employees and other individuals covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from the Compounding Pharmacy without any evaluation by a medical professional that they were medically necessary. In return, the pharmacy paid one of Masucci’s conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to Masucci and other members of the conspiracy.
Masucci’s conspirators would then cause the prescriptions to be signed by a doctor who never evaluated whether the patients had a medical necessity for the compounded medication. The prescriptions were then faxed to the Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.
According to the information, the Pharmacy Benefits Administrator paid the Compounding Pharmacy more than $50 million for compounded medications mailed to individuals in New Jersey, including $1.8 million for prescriptions submitted by Masucci and her cohorts. Masucci received $388,608 for her role in the scheme.
In addition to the prison term, Judge Kugler sentenced Masucci to three years of supervised release and ordered her to pay $1.8 million in restitution.
U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark; and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s sentencing. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk Jr. and Christina Hud of the U.S. Attorney’s Office in Camden.
Defense counsel: Amy Luria Esq., Roseland, New Jersey
Sextortion Warning from U.S. Attorney, Georgia's Internet Crimes Against Children DirectorRead the Press Release
MACON – As Georgia children begin a new school year and some take on new social media habits, the U.S. Attorney for the Middle District of Georgia, Charles “Charlie” Peeler, and the Special Agent in Charge of Georgia’s Internet Crimes Against Children (ICAC) Task Force, Debbie Garner, are warning parents and educators about sextortion, a growing cyber-crime against children. Sextortion is when an adult predator coerces or entices a child to produce a sexually explicit image and send it over the internet. The predator will often use that image to extort the child to produce more sexually explicit images under threats of sending that image to friends and parents. The young victims often report feeling that there was no way out and that they were going to get into trouble.
In May, a convicted, registered sex offender living in Oregon was sentenced to 210-months in federal prison in the Middle District of Georgia for Coercion and Enticement of a Minor after posing as a teenager and sextorting a 15-year old girl living on Fort Benning, a military installation in Columbus, Georgia. The defendant, Colby Ray Cochran, 24, also admitted to interacting with other children online across the country, requesting nude photos from them and threatening to expose their nude images if they refused to send more. At the time of his offense, Mr. Cochran was on probation for a sex crime, was active on the sex offender registry and was prohibited from possessing and using internet-capable devices. You can read more about this case, and how the victim’s mother discovered the threats against her child and reported it to law enforcement, by visiting https://www.justice.gov/usao-mdga/pr/210-months-prison-sentence-oregon-sex-offender-caught-luring-threatening-young-columbus.
“Sextortion is a rapidly growing, insidious cyber-crime targeting children. Parents are the first line of defense against these predators,” said U.S. Attorney Charlie Peeler. “I promise that the U.S. Attorney’s Office will do its part and prosecute child predators to the fullest extent of the law. But, we need parents and guardians to educate themselves and the children in their care about the threats online, take the proper precautions to protect their families, and report suspected crimes to the authorities. Sextortion causes grave and lasting harm to young victims. Together, we can protect vulnerable children from evil, manipulative predators.”
“Those who sextort often manipulate and subsequently continually taunt vulnerable child victims, sometimes for years. It is one of the most disturbing and monstrous crimes we investigate,” said Debbie Garner, the Special Agent in Charge of ICAC. “The actions of someone who sextorts a child can often trigger a range of negative outcomes for and emotions in that child including hopelessness, fear, and severe anxiety and depression. The Georgia Bureau of Investigation and the Georgia Internet Crimes Against Children Task Force will continue to work aggressively to find and stop those that prey on our children in this manner.”
The Georgia Internet Crimes Against Children Task Force suggests several best practices for parents when it comes to a child’s online use and access:
- Teach your child not to friend or follow anyone on social media they do not personally know.
- Teach your child not to talk to anyone online that they do not personally know.
- Know what your child is doing online and educate yourself. If your child has an Instagram or Snapchat account, then you, the parent, need an Instagram or Snapchat account and you must know how to use these accounts. Be educated about what your child is doing online, who they are following, and who they are talking to on social media.
If you suspect your child is in trouble online, talk to your child. Then, report inappropriate or illegal contact to local law enforcement. Parents can also contact the National Center for Missing and Exploited Children (NCMEC) at www.missingkids.com or 1-800-THE-LOST. The Georgia-based incident reports will be directed to investigators with the Georgia Bureau of Investigations (GBI). There is no stereotypical predator. Many children are victimized be people they know, even online. Teach children to trust their instincts. Parents and guardians can learn more by visiting www.thorn.org/sextortion and www.netsmartz.org.
Child crime prosecutions in the Middle District of Georgia are part of Project Safe Childhood, a nationwide Department of Justice initiative to combat the growing epidemic of child sexual exploitation and abuse. Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.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.
Sex Offender Sentenced for Illegally Reentering the United StatesRead the Press Release
NORFOLK, Va. – An El Salvadoran national, who was previously convicted of aggravated sexual battery of a minor, was sentenced today to two and a half years in prison for illegally reentering the United States.
“Moran-Arevalo has shown total disregard our country’s laws and borders,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Previously, Moran-Arevalo sexually abused a minor victim while he was evading deportation, then quickly reentered the United States illegally and committed more crimes that put the safety of our communities at risk.”
According to court documents, Ubaldo Adonay Moran-Arevalo, 37, was found in the United States illegally in 2005 and placed into removal proceedings. After Moran-Arevelo failed to show up to the hearing, the immigration judge issued an order of removal. For approximately three years, Moran-Arevalo evaded deportation. While the removal order was pending, he sexually abused a 12-year-old who shared a residence with him.
“ICE continues to prioritize the arrest and removal of those with no lawful claim to the United States who also pose serious public safety threats,” said Lyle A. Boelens, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C. “In this case, a child was not even safe in her own home because, not once but twice, an individual illegally entered the United States to further violate our laws and continue his dangerous criminal behavior.”
Moran-Arevalo was not caught, however, until several months later when the victim discovered him hiding under her bed after she had showered and changed for school. She reported his conduct to her middle school guidance counselors, who contacted the police. Federal authorities found him after he was arrested, charged, and convicted of an aggravated felony for aggravated sexual battery of a victim less than 13 years old. Moran-Arevalo served only a year in jail and received a five-year probation sentence. He was removed at taxpayer expense in 2009 after finishing his jail sentence.
Within a year of his removal and while on probation, Moran-Arevalo illegally reentered the United States, eventually returning to live at the residence where he had sexually abused the minor victim. Although the victim and her family had moved out, there were multiple other children living in the residence.
Federal authorities found Moran-Arevalo again in 2018, after he had been arrested and charged for driving while intoxicated and driving without a license. He was convicted of those charges shortly before entering federal custody.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Lyle A. Boelens, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after sentencing by Senior U.S. District Judge Henry Coke Morgan, Jr. Assistant U.S. Attorney William B. Jackson 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. 2:18-cr-165.
Seventeen people indicted for conspiracy to bring kilogram quantities of heroin, fentanyl, cocaine and marijuana from California to Northeast OhioRead the Press Release
Seventeen people were indicted in federal court for their roles in a conspiracy to bring large amounts of heroin, fentanyl, cocaine, crack cocaine and marijuana from California to the Cleveland area and sell the drugs here.
Named in the 30-count indictment are: Brandon Fletcher, 35, of Warrensville Heights; Edgar Arturo Sanchez, 27, of Paramount, California; Stephon Carter, 34, of Cleveland; Donnie Palmer, 34, of Cleveland Heights; Kevin Philmon, 37, of Cleveland; Wayne Nix, 27, of Warrensville Heights; Robert Hawes, 46, of Bedford; Antonn Melton, 37, of Maple Heights; Kevin Williams, 34, of Euclid; Robert Pollard, 29, of Lithonia, Georgia; Freddie Murphy, 33, of Cleveland; Eric Armstrong, 58, of South Euclid; Jamill McDonald, 37, of Cleveland Heights; Steven Bouyer, 52, of Cleveland; Darcell Jackson, 32, of Euclid; Lonnie Jordan, 29, of Maple Heights, and DeWitt Chisholm, 38, of Warrensville Heights.
“At a time when a record number of our neighbors were dying from drug overdoses, this organization allegedly brought in large amounts of fentanyl, heroin and cocaine from California and sold it all over Northeast Ohio,” U.S. Attorney Justin Herdman said. “Some members of the conspiracy used rifles and other firearms to protect their products while others laundered tens of thousands of dollars in drug money.”
"Illegal drug activity brings danger to our communities - it will not be tolerated," said FBI Special Agent in Charge Eric B. Smith. "Collaborative law enforcement efforts will continue to identify and disrupt drug trafficking organizations bringing violence to our streets."
“Working together with our law enforcement partners throughout Northeast Ohio, along with the US Attorney‘s Office, we are able to conduct large scale operations and get amazing results,” said Cleveland Police Chief Calvin D. Williams. “This latest indictment of multiple suspects only cements these collaborative efforts as imperative to effective policing today.”
According to the indictment:
Fletcher received kilogram shipments of cocaine, heroin and marijuana from California, from Sanchez and other suppliers. Fletcher arranged for the drugs to be transported to the Cleveland area via domestic shipping carriers.
Carter, at Fletcher’s direction, collected the drug shipments and then delivered the cocaine, heroin and marijuana to Fletcher’s customers, including Nix, Philmon, Hawes, Pollard, Williams and others.
Nix received ounce quantities of cocaine from Melton, and redistributed cocaine, heroin and fentanyl to Chisholm, Murphy, Armstrong, McDonald, Bouyer, Jackson, Jordan and others. Those people then resold the drugs to customers in Northeast Ohio.
Nix is also charged with maintaining a drug premises for using residence on Berrimore Lane in Warrensville Heights to store, process and sell cocaine, fentanyl and other drugs. Additionally, Nix is charged with being a felon on possession of a firearm for having a Taurus 9 mm and ammunition despite several prior drug convictions.
Philmon is charged with maintaining a drug premises for using his residence at the Colony Apartments on Van Aken Boulevard in Cleveland to store, process and sell powder and crack cocaine. He is also charged with possessing a firearm in furtherance of drug trafficking and being a felon in possession of a firearm. Philmon had an Eagle Arms M-15 and ammunition at his apartment despite previous drug convictions.
Carter collected drug proceeds at Fletcher’s direction, and, along with Palmer, stored the money.
Fletcher and Carter charged with conspiracy to launder money. Carter, at Fletcher’s direction, met with California-based members of the drug trafficking organization and provided tens of thousands of dollars worth of drug proceeds. He also mailed them drug proceeds, sometimes concealed in musical instruments.
This conspiracy took place between August 2016 through November 2017, according to the indictment.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The case was investigated by the Northern Ohio Law Enforcement Task Force (NOLETF) and SouthEast Area Law Enforcement Narcotics Task Force, a collaboration of police departments including Bedford, Bedford Heights, Garfield Heights, Maple Heights, Solon, Oakwood and Walton Hills.
The NOLETF is a long standing multi-agency task force comprised of investigators from the Federal Bureau of Investigation, Drug Enforcement Administration, Internal Revenue Service, U.S. Coast Guard Investigative Service, and the police departments of Broadview Heights, Brooklyn Heights, Cleveland, Cleveland Heights, the Cuyahoga County Sheriff’s Office, Cuyahoga Metropolitan Housing Authority, Euclid, Independence, North Royalton, the Regional Transit Authority, Westlake and Shaker Heights. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area (HIDTA) initiatives. HIDTA supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.
The case is being prosecuted by Assistant U.S. Attorney Margaret Sweeney.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Serial Fraudster Pleads Guilty to Scamming Elderly Victims Out of Hundreds of Thousands of Dollars in Fraudulent Payment SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that MICHAEL PIZARRO, a/k/a “Eric Miller,” pled guilty today before Chief United States Magistrate Judge Gabriel W. Gorenstein to defrauding individuals (the “Victims”) by representing to them that they had qualified for a government grant, which could be accessed only upon the payment of an up-front refundable application fee. In actuality, the government grant did not exist and none of the Victims had been approved for such a grant. PIZARRO continued to perpetrate this scheme even after he was arrested and released on bail.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he admitted in court, Michael Pizarro preyed on elderly victims and others by charging them up-front fees to get government grant money that was fictitious. In fact, there were no ‘grants’ and the ‘registration fee’ Pizarro charged his victims was just money he stole from them.”
According to allegations in the criminal complaint, the information, and other documents filed in federal court, as well as statements made in public court proceedings:
Beginning in at least February 2017 through July 25, 2019, PIZARRO called the Victims, many of whom were more than 70 years old, and told them that his name was “Eric Miller” and he was calling on behalf of a company called “National Grants.” PIZARRO informed the Victims that they had been approved for a government grant, which was being held in escrow at an account with the “Word Bank” in Washington, D.C. Before the funds could be released, however, the Victims would have to pay a registration fee. In fact, none of the Victims had been approved for a grant, the grants did not exist, and no Victim ever received any funds.
In April 2018, PIZARRO was charged in New York Supreme Court in connection with his involvement with National Grants from October 2015 through January 2017. PIZARRO pled guilty in December 2018 and was awaiting sentencing when he was arrested in connection with this scheme on May 2, 2019. After he was released on bail, PIZARRO continued to seek contact information for additional Victims in furtherance of the scheme. In total, not including the conduct charged in New York Supreme Court, PIZARRO defrauded the Victims out of approximately $270,000.
PIZARRO, 37, of Brooklyn, New York, pled guilty to one count of wire fraud while on pre-trial release. That offense carries a maximum prison term of 30 years. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. PIZARRO is scheduled to be sentenced by Judge Paul A. Crotty on December 20, 2019.
Mr. Berman praised the outstanding investigative work of the Department of Homeland Security, Homeland Security Investigations, and the New York City Police Department.
The prosecution is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Kiersten A. Fletcher and Benet J. Kearney are in charge of the prosecution.
If you believe you have been a victim of the scheme described above, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact Wendy Olsen-Clancy, the Victim Witness Coordinator at the United States Attorney’s Office for the Southern District of New York, at 866-874-8900, or [email protected]. You may also report it to Detective Christopher Bastos at 917-480-7167 or [email protected].
San Francisco Regional Center Owner Charged in $110 Million Fraud SchemeRead the Press Release
OAKLAND - A federal grand jury in Oakland indicted Thomas Henderson, Kexing Hu (a/k/a Peter Hu), and Cooper Lee on charges of conspiracy and wire fraud for their respective roles in a scheme to defraud investors in a jobs creation program administered by the United States Citizenship and Immigration Service (USCIS), announced United States Attorney David L. Anderson; U.S. Department of State’s Diplomatic Security Service (DSS) Special Agent in Charge Matthew Perlman; U.S. Homeland Security Investigations (HSI) San Francisco Special Agent in Charge Tatum King; and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
The multi-count indictment, unsealed today, alleges that Henderson, 70, of Oakland; Hu, 40, of Ningbo, China; and Lee, 42, formerly of Oakland, conspired to misappropriate investor funds, to lie to foreign investors about the use of their funds, and to make false statements to USCIS in connection with the Employment-Based Immigration, Fifth Preference Category Program, referred to as the EB-5 visa program. The indictment also alleges that Henderson fraudulently abused the EB-5 visa program and jeopardized the creation of over 2,000 jobs in Oakland and surrounding areas.
According to the indictment, Henderson was the founder and owner of the San Francisco Regional Center, LLC (SFRC), which he used to solicit investments from foreign investors through the EB-5 visa program. From 2011 to 2017, Henderson and Hu raised more than $110 million from more than 200 foreign investors, with each of the investors believing they were paying capital to fund one of seven EB-5 businesses sponsored by SFRC. Henderson, assisted by Hu and Lee, allegedly improperly diverted funds raised for one business and used them for other purposes. The indictment also alleges that Henderson diverted more than $17 million of $21 million raised for one of the projects and spent it in part on earlier money-losing projects. Henderson also allegedly made false statements and submitted false documents to the USCIS, falsely stating investor funds would be used for the start-up and operation of the EB-5 projects described in business plans.
“The Diplomatic Security Service is committed to protecting the integrity of all U.S. visas,” said Special Agent in Charge Matthew Perlman of the DSS San Francisco Field Office. “Together, with our law enforcement and prosecutorial partners, DSS was able to stop prominent local businessmen from further exploiting the U.S. visa process, and bilking foreign investors for illegal profit.”
"The FBI is committed to assisting our local partners in protecting the integrity of our visa processes," said FBI San Francisco Special Agent in Charge John F. Bennett. "Businesses seeking to exploit these processes should know that we are vigilant and that we will work to bring them to justice."
“This case serves as a clear warning to all criminals who seek to profit off of the United States’ legal immigration system. We will locate, arrest, and aid in their prosecution in order to recoup any and all illicit gains,” said Tatum King, Special Agent in Charge, Homeland Security Investigations for San Francisco and Northern California. “Besides posing a significant threat to national security and public safety, immigration benefit fraud and related schemes seriously rob immigrants who are deserving of these benefits while deterring investors who genuinely want to assist them.”
USCIS administers the EB-5 program. Under the program, foreign nationals may obtain permanent United States residency, commonly known as a Green Card, by investing in qualifying American businesses and creating jobs for U.S. citizens and residents. To receive a two-year grant of conditional permanent residency status, foreign investors must meet certain requirements for an entry visa, comply with program requirements and make an investment of a minimum of $1 million, or $500,000 if the investment is made in certain areas of high unemployment. After two years, the foreign investor can petition for permanent residency. The granting of permanent legal residency for the foreign investor and immediate family is dependent, in part, on the creation of at least 10 jobs for United States citizens and residents through the business funded by the investment.
In this case, Henderson and Hu are charged with 12 counts of wire fraud, in violation of 18 U.S.C. § 1343, and Lee is charged with six counts of wire fraud. Henderson, Hu, and Lee are charged with conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and conspiracy to commit offenses against the United States, in violation of 18 U.S.C. § 371. Henderson is also charged with one count of making a false statement to a government agency, in violation of 18 U.S.C. § 1001(a)(2), and one count of false writings to a government agency, in violation of 18 U.S.C. § 1001(a)(3).
Henderson and Lee were arrested this morning. Henderson was arrested in Oakland, Calif., and made his initial appearance before U.S. Magistrate Judge Donna Ryu. He is scheduled to appear October 1, 2019, before the Honorable Jeffrey S. White, U.S. District Judge for a status conference. Lee was arrested in Laguna Beach, Calif. The date he will appear on the charges in the Northern District of California has not yet been set. Hu has not been arrested.
An indictment merely alleges that crimes have been committed, and all defendants, including Henderson, Hu, and Lee, are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum penalty of 20 years in prison and a $250,000 fine (or twice the gross gain or loss) for each wire fraud count and the conspiracy to commit wire fraud count. The defendants face a maximum of five years in prison for each conspiracy to commit offenses against the United States count and false statements or writings count. Further, additional fines, forfeitures, and restitution may be ordered; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorney Lloyd Farnham is prosecuting the case with the assistance of Sarah Lamparelli and Patricia Mahoney. The prosecution is the result of an investigation led by the U.S. Department of State Diplomatic Security Service’s representative to the Document and Benefit Fraud Task Force (DBFTF), overseen by the HSI, with the participation of the Federal Bureau of Investigation. The DBFTF is a multi-agency task force that coordinates investigations into fraudulent immigration documents. U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security also assisted with the investigation. Additional assistance was provided by the San Francisco Regional Office of the Securities and Exchange Commission.
Sacaton man Sentenced to Prison for Habitual Domestic ViolenceRead the Press Release
PHOENIX, Ariz. – This week, Lawrence Stanley Coops, 34, of Sacaton, Ariz., a was sentenced by U.S. District Judge Diane J. Humetewa to two and a half years in prison followed by three years of supervised release. Coops previously pleaded guilty to Domestic Assault by a Habitual Offender.
On August 18, 2018, Coops assaulted the victim after having previously been convicted of assault against a spouse or intimate partner. Coops and the victim are both members of the Gila River Indian Community.
The investigation was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
Rockford Man Pleads Guilty to Aiming Laser Pointer at AircraftRead the Press Release
ROCKFORD — A Rockford man pleaded guilty today before U.S. District Judge Philip G. Reinhard to aiming the beam of a laser pointer at an aircraft.
BRENTON WELLS, 45, admitted in a written plea agreement that on Dec. 6, 2018, while standing in the backyard of a residence in Rockford, he knowingly aimed his laser pointer at an aircraft flying over the residence. Wells also admitted that he continued to aim his laser pointer at the aircraft for a period of time even as the aircraft moved through the sky over the residence.
Sentencing is set for Dec. 10, 2019, at 9:00 a.m. Wells faces a maximum potential penalty of up to five years in prison and a fine of up to $250,000. The actual sentence will be determined by the United States District Court, guided by the Sentencing Guidelines.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI, and Dan O’Shea, Rockford Chief of Police. The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
Repeat Troy Sex Offender Sentenced to 10 Years in PrisonRead the Press Release
UTICA, NEW YORK – Gary McKay, age 43, of Troy, New York, was sentenced today to serve 10 years in prison, followed by a lifetime term of supervised release, for possessing child pornography for a second time.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his guilty plea to three counts of possession of child pornography, McKay admitted that on August 14, 2017, while on supervised release for a prior federal conviction for possession of child pornography, he possessed three electronic devices containing more than 2,500 images of minors, including prepubescent children engaged in sexually explicit conduct. McKay previously served 30 months in prison for his prior possession conviction and was seven years into a ten-year term of supervised release at the time he committed this new offense.
United States District Judge David N. Hurd sentenced McKay to 10 years in prison and lifetime supervised release on each of the possession of child pornography counts to run concurrently (at the same time). Judge Hurd also sentenced McKay to 5 years imprisonment for violating his terms of supervised release, to run concurrently to the other sentences.
This case was investigated by the United States Probation Office for the Northern District of New York and Homeland Security Investigations (HSI), and was prosecuted by Assistant U.S. Attorneys Richard Bellis and Alicia Giglio Suarez.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Registered Sex Offender Sentenced to Nearly 40 Years in Prison for Producing Child PornographyRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of ZACHARY JAMES WITRY, 29, to 472 months in prison, followed by a lifetime of supervised release, for production of child pornography. WITRY, who pleaded guilty on April 17, 2019, was sentenced yesterday before Judge Nancy E. Brasel in United States District Court in St. Paul, Minnesota. When announcing the sentence, Judge Brasel commented that Mr. Witry’s goal was to meet teenage girls and to rape them. She further expressed concern with his escalating criminal conduct, his inability to comply with previous court supervision for similar child exploitation offenses, and the manipulative tactics that he used to get what he wanted from the minor victims.
United States Attorney Erica MacDonald stated, “The defendant, a registered sex offender, has a history of preying on young victims. I thank the Court for recognizing his extreme danger to our children and sentencing him accordingly.”
According to the defendant’s guilty plea and documents filed with the court, WITRY used various social media platforms such as SnapChat and MeetMe to created fake accounts and profiles, including posing as a 15-year-old boy, to make contact with teenage girls ranging from 13 to 17 years old. WITRY engaged in extensive grooming of his victims and solicited multiple sexually explicit videos and photographs from minor girls. In a two month period in March and April 2017, WITRY made contact with over 210 minor girls with the goal of obtaining sexually explicit images. WITRY met three of the minors in person and sexually assaulted each of them. WITRY exchanged approximately 1,665 text messages with one of the minors and, prior to soliciting sexually explicit photographs from her, WITRY told the minor that he loved her, wanted to marry her, and have children with her.
WITRY has two previous state court convictions for solicitation of a child, one in Sherburne County in 2012, and one in Wright County in 2015.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was the result of an investigation conducted by the Shakopee Police Department.
Assistant U.S. Attorneys Angela M. Munoz-Kaphing and Alexander D. Chiquoine prosecuted the case.
Defendant Information:
ZACHARY JAMES WITRY, 29
Buffalo, Minn.
Convicted:
- Child pornography, 1 count
Sentenced:
- 472 months in prison
- Lifetime of supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Registered Sex Offender Goes Back to Prison for Possessing Child PornographyRead the Press Release
KANSAS CITY, KAN. – A registered sex offender from Lawrence was sentenced today to 10 years in federal prison for possessing child pornography, U.S. Attorney Stephen McAllister said. In addition, the defendant was ordered to pay $5,000 to the fund established by the Justice for Victims of Trafficking Act.
Benjamin Grace, 32, Lawrence, Kan., pleaded guilty to one count of possession of child pornography. In his plea, he admitted he was identified during an FBI investigation of a service on the internet that was involved in the production, advertisement and distribution of child pornography. After executing a search warrant at his home in Lawrence, FBI agents interviewed him at his workplace in Overland Park. He admitted viewing child pornography, including images of children as young as five years old.
At the time, Grace was listed on a Kansas Bureau of Investigation web site because of a 2008 felony conviction in Johnson County on a charge of electronic sexual solicitation of a child.
McAllister commended the FBI and Assistant U.S. Attorney Kim Flannigan for their work on the case.
Prison sentence for leader of drug trafficking conspiracy wraps up major investigationRead the Press Release
BRUNSWICK, GA – The lead defendant in a major south Georgia drug trafficking conspiracy has been sentenced to nearly 11 years in federal prison, representing the final defendant to be sentenced from the now-dismantled drug trafficking ring.
John Eugene Overcash, a/k/a “Cowboy,” 53, of Brunswick, Ga., was sentenced to 128 months in federal prison by U.S. District Court Judge Lisa Godbey Wood, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
Overcash pled guilty to Conspiracy with Intent to Distribute and to Distribute 5 Kilograms or More of Cocaine and an Amount of Marijuana, and Possession of a Firearm by a Prohibited Person. He also was sentenced to 120 months to be served concurrently on the firearms charge, and after completion of his sentence will serve five years of supervised release. There is no parole in the federal system.
The court also ordered Overcash to forfeit $60,207 in cash seized during the investigation, along with two vehicles and multiple firearms and ammunition.
“Through vigorous investigation and relentless prosecution, Overcash and his criminal cohorts will no longer be pumping poison into our communities,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “The same fate awaits any others who are tempted to follow in their footsteps: A prison cell is available for them, too.”
Overcash was the lead defendant among two dozen indicted on federal and state charges in spring of 2018 in the takedown of a large-scale drug-trafficking operation centered around Glynn and McIntosh counties. The investigation, which led to the seizure of kilograms of cocaine, more than 30 pounds of marijuana, crack cocaine, more than $60,000 in cash and dozens of firearms, was coordinated by the federal Bureau of Alcohol, Tobacco, Firearms and Explosives, along with the Glynn County Sheriff’s Office and the McIntosh County Sheriff’s Office and the U.S. Marshals Service.
Other defendants convicted and sentenced in the operation include:
Edrin Temple, a/k/a “Pete McCiver,” 40, of Darien, Ga., sentenced to 130 months in prison for Possession of Cocaine with Intent to Distribute. Temple will begin serving his federal sentence after release from state prison for state charges and for violating probation.
Kenneth Leon Bradley, 51, of Brunswick, Ga., sentenced to 112 months in prison followed by five years of supervised release for Conspiracy to Possess with Intent to Distribute and to Distribute Controlled Substances, including 5 kilograms or more of cocaine, a quantity of crack cocaine and a quantity of marijuana;
Anthony Bernard Lewis, a/k/a “Amp,” 47, of Brunswick, Ga., sentenced to 42 months in prison followed by three years of supervised release for Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine;
Jeremy McIntyre, 38, of Brunswick, Ga., sentenced to 34 months in prison followed by three years of supervised release for Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine;
Richard Carter, 58, of Brunswick, Ga., sentenced to 36 months in prison followed by three years of supervised release for Possession with Intent to Distribute Marijuana;
Darrius Merrell, 39, of Brunswick, Ga., sentenced to 21 months in prison followed by three years of supervised release for Conspiracy with Intent to Distribute and to Distribute Cocaine;
Keneil King, 26, of Brunswick, Ga., sentenced to 37 months in prison followed by three years of supervised release for Possession with Intent to Distribute Cocaine. After completion of his sentence, King will be referred to Immigrations and Custom Enforcement for deportation.
Troy Crosby, 50, of Hortense, Ga., sentenced to 38 months in prison followed by three years of supervised release for Distribution of Cocaine;
Jessica Tabateau, 32, of Orlando, Fla., sentenced to three years of probation for Conspiracy to Possess with Intent and to Distribute Cocaine;
Amy Manson, 38, of Hortense, Ga., sentenced to time served for Unlawful Use of a Communications Facility to Facilitate a Drug Crime;
Joseph Simmons, a/k/a “Bug,” 49, of Brunswick, Ga., sentenced to 24 months in prison followed by one year of supervised release for Unlawful Use of a Communications Facility to Facilitate a Drug Crime;
Tommy Murray, 51, of Brunswick, Ga., sentenced to 12 months plus one day in prison followed by one year of supervised release for Unlawful Use of a Communications Facility to Facilitate a Drug Crime;
Clifton Foster, 65, of Brunswick, Ga., sentenced to 18 months in prison followed by one year of supervised release for Unlawful Use of a Communications Facility to Facilitate a Drug Crime; and,
Marcus Mungin, 34, of Brunswick, Ga., sentenced to 10 months in prison followed by one year of supervised release for Unlawful Use of a Communications Facility to Facilitate a Drug Crime.
Additional defendants in the operation were prosecuted on state charges.
“This case is the product of a concerted collaborative effort on the part of ATF and its local partners to target, investigate, and eliminate the perpetrators of violent crime.” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the ATF. “These sentences will ensure the incarceration of dangerous criminals and contribute to the restoration of order and peace around Glynn and Mcintosh Counties.”
Assistant U.S. Attorneys Matthew Josephson and E. Greg Gilluly Jr. prosecuted these cases for the United States.
Precious Metals Trader Pleads Guilty to Conspiracy and Spoofing ChargesRead the Press Release
A former precious metals trader at the London, Singapore and New York offices of a U.S. bank (Bank A) pleaded guilty today to conspiracy and spoofing charges, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office.
Christian Trunz, 34, of London, England, pleaded guilty in the Eastern District of New York to an information charging him with one count of conspiracy to engage in spoofing and one count of spoofing. Today’s pleas were accepted by U.S. District Judge Pamela K. Chen. Sentencing is scheduled for Feb. 19, 2020. Trunz resigned from his position as an Executive Director at Bank A earlier today.
According to admissions made as part of his plea and other statements made in court, between approximately July 2007 and August 2016, Trunz placed thousands of orders that he did not intend to execute for gold, silver, platinum and palladium futures contracts traded on the New York Mercantile Exchange Inc. (NYMEX) and Commodity Exchange Inc. (COMEX), which are commodities exchanges operated by CME Group Inc. Trunz learned to spoof from more senior traders, and spoofed with the knowledge and consent of his supervisors.
This case is the result of an ongoing investigation by the FBI’s New York Field Office. The Commodity Futures Trading Commission’s Division of Enforcement provided assistance in this case. Trial Attorneys Avi Perry and Matthew F. Sullivan of the Criminal Division’s Fraud Section are prosecuting the case.
Trunz is cooperating with the ongoing investigation.
Pittsburgh Man Charged with Robbing Two Banks on the Same DayRead the Press Release
PITTSBURGH, Pa – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating the federal robbery laws, United States Attorney Scott W. Brady announced today.
The two-count indictment named Jaymar Henderson, age 58, formerly of Pittsburgh’s Larimer neighborhood, as the sole defendant.
According to the indictment, on July 2, 2019, Henderson robbed the PNC Bank, located at 225 Fifth Avenue, Pittsburgh, PA, of $121.00. On the same day, Henderson also robbed the Citizens Bank, located at 6112 Penn Avenue, Pittsburgh, PA, of $1,400.00.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine of not more than $250,000, or both, at each count. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brian M. Czarnecki is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Felon Charged with Conspiracy, Robbery and Illegal Gun PossessionRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA has been indicted by a federal grand jury in Pittsburgh on charges of robbery, conspiracy, and firearms violations, United States Attorney Scott W. Brady announced today.
The four-count Indictment named Deon Reese, age 44, as the sole defendant.
According to the indictment, on or about March 23, 2017, Reese, and individuals known and unknown to the grand jury, agreed to rob the victim of controlled substances and money. During the robbery, Reese discharged a firearm. Reese was prohibited from possessing firearms due to previous felony convictions.
The law provides for a sentence of not less than 10 years up to life in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Douglas Maloney is prosecuting this case on behalf of the government.
The Pittsburgh Bureau of Police and the Drug Enforcement Administration conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty
Philadelphia Man Sentenced 17+ Years for Manufacturing Child PornographyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Michael Walpole, 31, of Philadelphia, Pennsylvania, was sentenced to 210 months’ imprisonment (17 ½ years) and 15 years’ supervised release by United States District Judge Paul S. Diamond on child exploitation charges.
In May 2018, the defendant forced the five-year old victim to take off her pants and underwear. The defendant took off his own pants, placed his penis on the victim’s naked buttocks, and photographed this abuse. On April 2, 2019, the defendant pleaded guilty to manufacture and attempted manufacture of child pornography.
“The nature of this defendant’s crime is horrifying and the negative impact on the victim and her family can never be fully understood or appreciated, which is why my Office is committed to working with our law enforcement partners to identify, investigate, and prosecute these dangerous predators,” said U.S. Attorney McSwain.
“Those who sexually exploit children do serious lasting harm,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Walpole involved a child victim in his own depraved fantasy and documented it. He’ll now be held accountable for his actions, locked away where he can’t victimize any more kids.”
This case were brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation (FBI) and is being prosecuted by Assistant United States Attorney Meaghan A. Flannery.
Pharmacy Owner Sentenced for Health Care Fraud and Filing False Tax ReturnsRead the Press Release
St. Louis, MO – Rehan A. Rana, 46, of Ellisville, MO, was sentenced on Friday, August 16, 2019 to 24 months in prison and three years of supervised release. He was also ordered to pay a $100.000 fine, restitution in the amount of $751,787 to the Internal Revenue Service, and $526,285 to the Medicare Program. Rana appeared before U.S. District Judge Audrey G. Fleissig.
According to court documents, between 2009 and 2012, Rana and others associated with Allegiance Medical Services, a medical testing laboratory, paid illegal kickbacks to doctors and marketers in exchange for blood and urine specimens that they sent or referred to the lab. Allegiance Medical Services concealed the illegal kickbacks from Medicare and Medicaid, which would not paid for tests of specimens obtained by the payment of illegal kickbacks.
For the tax years 2013, 2014, and 2015, Rana, the owner of St. Louis Hills Pharmacy, filed false tax returns, indicating that he had taxable distributions from his pharmacy of only $300,000 in 2013, $150,000 in 2014, and $217,500 in 2015, when he actually had received $1,993,600 in 2013, $1,328,924 in 2014, and $1,253,372 in 2015.
“IRS Criminal Investigation is committed to investigating individuals who use their businesses as personal piggy banks,” said Steven Slazinik, Acting Special Agent in Charge of IRS Criminal Investigation. “We all pay when others swindle the government. Tax fraud of this magnitude and with this degree of trickery, dishonesty and deceit, deserves to be punished.”
The Internal Revenue Service – Office of Criminal Investigation, the U.S. Department of Health and Human Services – Office of the Inspector General, the FBI, and the Missouri Medicaid Fraud Control Unit investigated the case. Assistant United States Attorney Dorothy McMurtry handled the case for the U.S. Attorney’s Office.
Owner of Frederick Payroll Processing Business Pleads Guilty to Federal Fraud and Tax Charges Related to a Fraud Scheme with Losses of More Than $1.6 MillionRead the Press Release
Baltimore, Maryland – David Richison, age 64, of Frederick, Maryland, who owned and operated a payroll processing business, pleaded guilty today to federal charges of wire fraud and aiding in the filing of a false tax return, in connection with a fraud scheme in which he took funds from his clients’ tax escrow account and used them to pay his own personal expenses.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to his plea agreement, Richison owned and operated a Frederick-based payroll processing business, Period Financial, doing business as Period Payroll. Period Payroll provided payroll processing and payroll tax payment services to businesses in Maryland and Virginia, using special software specifically designed by Richison. In addition to printing paychecks for client employees, Period Payroll was responsible for calculating the employment taxes owed to federal and state taxing authorities by the client companies and those companies’ employees, as well as preparing and filing the client companies’ employment tax returns.
Period Payroll clients entrusted Richison with the authority to remove funds directly from their bank accounts to pay their federal and state taxes, as well as to pay fees to Period Payroll. Richison’s practice was to send the clients a copy of the tax return to be filed and an accounting of the funds to be removed from their accounts and subsequently paid over. Funds removed from client accounts were placed into an escrow account, which Richison used to make electronic payments to the IRS, generating a unique number for each wire sent on behalf of a client.
Richison admitted that from at least 2012 through 2014, the tax forms prepared and filed by Richison on behalf of Period Payroll clients properly reported the amount of taxes owed, but a corresponding amount of tax deposits was not made with the IRS. Richison began taking money from the client escrow fund to pay for his own personal and business-related expenses, such as legal fees, rather than paying those funds to the IRS, as he represented to his clients.
For example, in July 2012, Richison transferred $53,000 from the client escrow account to his personal attorney to pay legal fees. Over the course of 2013 and 2014, the frequency with which Richison failed to pay over client funds to the IRS increased. When clients received notices from the IRS that their employment taxes had not been paid, Richison provided false explanations for the missed payments and falsely promised to make the payments and cover the penalties and interest. To further conceal the scheme, Richison used one client’s escrowed funds to pay another client’s debt, penalties, and interest, without informing either client that he was doing so. In addition, Richison sent e-mails to clients falsely stating that he had made payments to the IRS on their behalf and provided as proof the wire numbers of transfers that he had made on behalf of other clients. Between approximately February 2013 and December 2014, Richison used approximately $598,365 of client escrow funds to make payments to the IRS to cover the penalties and interest his clients had accrued in order to conceal the fraud and continue to deceive his clients into thinking that Period Payroll was solvent.
By the end of 2014, there were insufficient funds in the client escrow account to cover the mounting debts and Richison closed Period Payroll. By that time, the difference between the amount taken from clients and reported to have been paid to the IRS per the tax returns filed on behalf of clients, and the actual payments made as required by those returns totaled at least $1,622,481.56.
As part of his plea agreement, Richison will be required to pay restitution in the full amount of the victims’ losses, which is agreed to be at least $1,609,561.59.
Richison faces a maximum sentence of 20 years in federal prison for wire fraud and a maximum of three years in federal prison for aiding in the filing of a false tax return. U.S. District Judge George L. Russell, III has scheduled sentencing for November 26, 2019 at 9:30 a.m.
United States Attorney Robert K. Hur commended the IRS Criminal Investigation for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Sean Delaney, who is prosecuting the case.
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Owner of Connecticut Meat Supplier Admits Fabricating E. Coli Test ResultsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Administrator Carmen Rottenberg, U.S. Department of Agriculture’s Food Safety and Inspection Service, announced that MEMET BEQIRI, also known as Matt Beqiri, 32, of Tolland, waived his right to be indicted and pleaded guilty today in Hartford federal court to a charge related to his meat processing business’s falsification of numerous E. coli test results.
According to court documents and statements made in court, Beqiri is the owner and general manager of New England Meat Packing, LLC, located in Stafford Springs, a federally inspected business engaged in the slaughtering, processing, selling and transporting of meat and meat food products for human consumption. Pursuant to the U.S. Department of Agriculture’s (USDA) approved Hazard Analysis and Critical Control Point (HACCP) plan for New England Meat Packing, the company is required to perform one generic E. coli carcass swab for every 300 animals slaughtered and to periodically collect ground beef samples for E. coli testing.
Between November 3, 2016 and September 9, 2017, Beqiri authorized the preparation and submission in the company’s Lab Sample Report binder, which the USDA’s Food Safety Inspection Service (FSIS) reviews, a total of 36 documents relating to 52 separate carcass swabs and ground beef samples on behalf of New England Meat Packing. The 36 documents were each on the letterhead of a certified laboratory that tests food product samples to ensure safety and wholesomeness and signed by the laboratory director. The documents stated that the required E. coli testing of samples submitted by New England Meat Packing had been conducted and completed, and that all 52 samples tested negative for E. coli. In fact, none of the 52 carcass swabs and samples had been submitted or tested by the identified laboratory, or any other laboratory, and the 36 documents were fraudulently prepared using laboratory letterhead obtained from previous testing that New England Meat Packing had conducted with that laboratory.
During the investigation of this matter, Beqiri admitted to an investigator with USDA’s FSIS that the documents were fraudulent, and that his business did not collect and submit the samples to the certified laboratory because he did not correlate the potential impact on food safety with his sampling program and wanted to create the appearance he was compliant with all USDA HACCP testing requirements.
There have been no known instances of illnesses reported by anyone who consumed the meat in any of the states where the meat was distributed.
“After this defendant’s fraudulent conduct was uncovered, he admitted to an investigator that he ignored the USDA’s meat testing requirements because he considered the process to be an inconvenience and a nuisance,” said U.S. Attorney Durham. “Such reckless conduct seriously endangers public safety and will be prosecuted.”
“FSIS investigators are on the job protecting public health every day,” said Carmen Rottenberg, FSIS Administrator. “Our work is critical to protect American families and the food supply, and we will not tolerate blatant disregard for food safety laws.”
Beqiri pleaded guilty to one count of making and using a false document and aiding and abetting, a charge that carries a maximum term of imprisonment of five years. He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on November 12, 2019. Beqiri is released on a $25,000 bond pending sentencing.
The plea agreement filed today in association with Beqiri’s guilty plea does not address potential civil administrative consequences for New England Meat Packing’s failure to test the meat it distributed.
The investigation was conducted by the U.S. Department of Agriculture, Food Safety and Inspection Service, Office of Investigations, Enforcement and Audit. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
North Las Vegas Felon Sentenced to 20 Years in Prison After Child Pornography ConvictionRead the Press Release
LAS VEGAS, Nev. – A North Las Vegas man who was convicted of a federal child pornography charge was sentenced today to 20 years in prison followed by a lifetime of supervised release, announced United States Attorney Nicholas A. Trutanich for the District of Nevada.
Richard Lee Saterstad, 41, was convicted in March 2019, of receiving and distributing child pornography. Saterstad has multiple prior felony convictions for non-exploitation offenses. United States District Judge Andrew P. Gordon presided over the bench trial and sentencing hearing.
According to court documents and evidence presented during the two-day trial, from November 23, 2013 to March 6, 2014, Saterstad received and distributed sexually explicit videos and images containing children over a peer-to-peer file sharing network. In March 2014, law enforcement executed a search warrant at his residence and found 14 different electronic devices belonging to Saterstad. A forensic examination of the seized items revealed over 3,500 images and almost 1000 videos of child pornography. Multiple images and videos contained bondage, bestiality, and infant/toddler victims.
The case was investigated by the Internet Crimes Against Children (ICAC) Task Force and prosecuted by Assistant United States Attorneys Kevin Schiff, Christopher Burton, and Elham Roohani.
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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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New Haven Man Sentenced to 92 Months for Firearm and Drug Offenses, Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that QIYON REED, also known as “Quiyon Reed” and “Gutter,” 36, of New Haven, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 92 months of imprisonment, followed by three years of supervised release, for firearm and drug offenses, and for violating the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, on January 29, 2013, Reed was sentenced in New Haven federal court to 70 months of imprisonment, followed by four years of supervised release, for distributing heroin. He was released from federal prison on October 27, 2017.
On September 12, 2018, New Haven police officers executed a state search warrant at Reed’s New Haven residence and seized a loaded Heritage Manufacturing Stealth C-2000 nine-millimeter, semi-automatic handgun; a loaded Smith & Wesson MP9 Shield nine-millimeter, semi-automatic handgun; a box of .45 caliber ammunition; approximately one gram of cocaine packaged for distribution, and items used to process and package narcotics for distribution.
In addition to his prior federal conviction, Reed’s criminal history includes state convictions for possession and sale of narcotics and for carrying a dangerous weapon.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Reed has been detained since his arrest on related state charges on September 12, 2018.
On May 23, 2019, Reed pleaded guilty in federal court to one count of possession of firearms by a convicted felon, and one count of possession with intent to distribute, and distribution of, cocaine.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorneys Elena L. Coronado and Marc H. Silverman.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Monroe man found with 7 kilograms of marijuana and 3 loaded firearms sentenced to 6 years in federal prisonRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced that Robert E. Robinson, 45, of Monroe, was sentenced Monday to 72 months in prison and five years of supervised release by U.S. District Judge Terry Doughty for possession of marijuana with the intent to distribute and possessing firearms in furtherance of a drug-trafficking crime. He previously pleaded guilty to the federal charges on February 20, 2019.
Law enforcement agents with the Monroe Metro Narcotics Unit obtained a search warrant on October 4, 2017, for Robinson’s residence following two undercover buys of marijuana from him. The search yielded more than 7 kilograms of marijuana as well as marijuana butter, marijuana cookies, digital scales and a marijuana grinder. Officers also found three loaded firearms, to include a Rock Island Armory revolver, loaded with six rounds of ammunition, an Anderson pistol, loaded with 30 rounds of ammunition, and a Smith & Wesson pistol, loaded with 14 rounds of ammunition. More than 500 rounds of various caliber ammunition were recovered from the residence.
The ATF and the Monroe Metro Narcotics Unit conducted the investigation. Assistant U.S. Attorney Brian C. Flanagan prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods 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.
Monroe County Man Sentenced to 18 Months’ Imprisonment for Making Multiple Straw Purchases of FirearmsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Douglas DeHaven, age 35, of East Stroudsburg, Pennsylvania, was sentenced on August 15, 2019, by U.S. District Court Senior Judge James M. Munley, to serve 18 months’ imprisonment and two years of supervised release for making false statements to federally licensed firearms dealers in connection with the purchase of firearms.
According to United States Attorney David J. Freed, DeHaven, previously pleaded guilty and admitted to providing false information regarding the straw purchases of 14 firearms between January 5, 2018 and February 11, 2018. Two of the firearms were purchased from Bella Mia Jewels in Tannersville; nine of the firearms were purchased from Dunkelberger’s Sports Outfitters, in Brodheadsville; and, three of the firearms were purchased from Dunkelberger’s Sports Outfitters, in Stroudsburg.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Robert J. O’Hara prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
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Mobile County Man Sentenced to More Than 20 Years for Methamphetamine Trafficking ConspiracyRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that United States District Court Judge Terry F. Moorer sentenced Darrell Eugene Johnson on August 15, 2019 to 262 months confinement for conspiracy to distribute and manufacture methamphetamine, possession with the intent to distribute methamphetamine, and being a felon in possession of a firearm.
On May 14, 2019, after two days of hearing testimony from approximately 12 witnesses and reviewing documentary evidence, a federal jury convicted the defendant of the above offenses. Evidence in the case included a search warrant of Johnson’s home on May 16, 2017, where Mobile County Street Enforcement Narcotics Team (MCSENT) officers recovered multiple bags of pure methamphetamine totaling almost an ounce, packaged for resale, in the living room and bedroom of the home. Officers also found a .410 gauge Turkish-made shotgun in the home which the defendant falsely claimed belonged to an ex-girlfriend.
In a completely separate investigation on March 10, 2017, Johnson was stopped by a State Trooper east of Montgomery heading north on I-85. He had a small amount of methamphetamine in his vehicle but also had $8,000 in US currency. Johnson was with a girlfriend – the same girlfriend who was with him during the May 2017 search warrant in Mobile. Johnson’s girlfriend testified at trial that the sole reason she and Johnson were headed from Mobile to the Atlanta area was to have an affair since they were both married at the time. But text messages in Johnson’s phone showed that Johnson was travelling to the Atlanta, Georgia area to purchase methamphetamine.
The United States also introduced four separate other traffic stops/vehicle accident investigations in Mobile County, some dating back to 2012, in which Johnson was found in possession of methamphetamine and/or a methamphetamine active “cook.” The case was prosecuted by George F. May, Deputy Criminal Chief and Luis F. Peral, Lead OCDETF Attorney. Approximately twelve separate Special Agents and officers testified in the trial including agents/officers from the Drug Enforcement Administration, Homeland Security Investigations, the Alabama Law Enforcement Agency, the Mobile County Sheriff’s Office, the Mobile Police Department and the Prichard Police Department, as well as four separate forensic scientists from the US Customs and Border Protection Laboratory and the Alabama Department of Forensic Sciences Laboratory in Mobile and Auburn, Alabama.
Medina Husband and Wife Arrested, Charged with Selling CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Anthony Allee, and Tashira Allee, both of Medina, NY, were arrested and charged by criminal complaint with possession with intent to distribute, and distribution of, cocaine, maintaining a drug-involved premises, and possession of a firearm in furtherance of drug trafficking activity. The charges carry a minimum penalty of five years in prison, a maximum of 20 years, and a $1,000,000 fine.
Assistant U.S. Attorney Justin G. Bish, who is handling the case, stated that according to the complaint, on July 22, 2019, a search warrant was executed at the defendants’ residence on Ridge Road in Medina. Investigators seized 11 firearms, numerous articles of property reported as stolen, marijuana, pills believed to be controlled substances, ammunition, scales, bags, and other items of evidence including Tashira Allee's cell phone. The firearms included a Taurus Judge pistol that had been reported stolen in the Town of Tonawanda.
Investigators also searched a barn located behind the main house. Inside, a safe was located. Within the safe, officers recovered prescription pill bottles containing pills, and a loaded Colt .45 ACP pistol. Also seized from the barn were digital scales with white powder residue, plastic bags, ammunition, an SKS rifle and magazine, a Ruger model 10-22 carbine, and marijuana.
The defendants made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. Anthony Allee was detained. Tashira Allee was released on conditions.
The complaint is the result of an investigation by the Orleans County Sheriff’s Office, under the direction of Sheriff Randy Bower, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Maryland Man Arrested for Making Multiple Threats to Injure and Kill HispanicsRead the Press Release
Eric Lin, 35, of Clarksburg, Maryland, was arrested on Friday, August 16, 2019, in Seattle, Washington, after being charged with Making Threatening Communications, in violation of Title 18, United States Code, Section 875(c) via a criminal complaint filed in Miami. Lin made his initial appearance before a United States Magistrate Judge in Seattle.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to allegations in the complaint, between May 30, 2019, and August 13, 2019, Eric Lin made multiple threatening communications via Facebook to injure and kill a South Florida resident and to kill all Hispanics in Miami and other places.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and the City of Miami Police Department. The case is being prosecuted by Assistant U.S. Attorney Maria K. Medetis.
A complaint is merely an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Man Taken into Custody after Being Charged with Illegally Exporting Prohibited Manufacturing Equipment to IranRead the Press Release
LOS ANGELES – Federal authorities have arrested a resident of Iran who is charged in a scheme to ship prohibited items from the United States to Iran, in violation of the International Emergency Economic Powers Act (IEEPA) and U.S. sanctions imposed on the nation.
Mehdi Hashemi, who sometimes used the name “Eddie Hashemi,” 46, a dual citizen of the United States and Iran who previously resided in Los Angeles, is charged in a 21-count indictment that was unsealed Monday afternoon.
Hashemi allegedly participated in a conspiracy to illegally export to Iran computer numerical control (CNC) machines, which are used to process raw materials, such as metals, to precise standards. The CNC machines at issue in this case are export-controlled for nuclear non-proliferation and anti-terrorism reasons.
After being taken into custody on Sunday after arriving at Los Angeles International Airport on a flight from Turkey, Hashemi was arraigned on the indictment late Monday afternoon. He entered not guilty pleas, was ordered held without bond, and a trial date was scheduled for October 15.
The indictment outlines a scheme in which Hashemi purchased CNC machines and related equipment from suppliers in the United States and Canada, made arrangements to ship the machines to the United Arab Emirates under false and forged invoices and packing lists, and then arranged to forward the machines from the UAE to Iran. Hashemi purchased the machines on behalf of a Tehran-based company identified in the indictment as “Company A,” an outfit that claimed to manufacture textiles, medical and automotive components, and spare parts.
The indictment outlines illegal shipments of CNC machines and related equipment to the UAE and alleges that Hashemi knew and intended for them to be forwarded to Iran. The indictment also alleges that Hashemi attempted to export CNC machines on several occasions, including two attempts through the Port of Long Beach.
Hashemi also is charged with making false statements to federal authorities in 2018 when he lied about his activities, his knowledge of federal export laws and his intention to send the CNC machines to Iran.
The indictment charges Hashemi with conspiring to violate IEEPA, violating IEEPA, smuggling, money laundering, unlawful export information activities, and making false statements.
A second defendant charged in the indictment – Feroz Khan, of the United Arab Emirates, who allegedly helped to ship CNC machines from the UAE to Iran – is a fugitive.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If he were to be convicted of the 21 charges in the indictment, Hashemi would face a statutory maximum penalty of 320 years in federal prison.
The case is being investigated by the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, which has received significant assistance from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Customs and Border Protection.
This case is being prosecuted by Assistant United States Attorney George E. Pence IV of the Terrorism and Export Crimes Section.
Man Pleads Guilty to Embezzling More Than $1 Million from Wisconsin & Kentucky BusinessesRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Curtis Tarver, 54, Spring Grove, Minnesota, pleaded guilty today to wire fraud. The wire fraud charge stems from Tarver’s embezzlement from Rapid Die and Molding Company (“RDM”) in Cassville, Wisconsin, and its sister company Hawley Products in Paducah, Kentucky.
Tarver began working for RDM and was eventually promoted to Chief Financial Officer (CFO) for RDM and Hawley Products (“the companies”). As the CFO, Tarver was responsible for handling all financial matters for the companies, including, but not limited to, disbursing payments, depositing and transferring funds, and balancing bank accounts. In this role, Tarver had access to and utilized a variety of financial accounts belonging to the companies, including bank accounts, commercial credit accounts, and PayPal.
The government’s investigation revealed that from 2006 until January 2018, Tarver devised and participated in a scheme to embezzle money from the companies. Tarver embezzled money from the companies in a variety of ways, including: 1) using the companies’ credit cards to make personal purchases; 2) using the companies’ checks for personal purchases; 3) issuing the companies’ checks to himself; 4) transferring the companies’ funds to his personal bank accounts using PayPal; and 5) direct transfers from the companies’ bank accounts to his personal bank accounts. For example, on November 30, 2015, Tarver transferred $9,200 from RDM’s PayPal account to his personal PayPal account. Tarver subsequently transferred the $9,200 to his personal account at Navy Federal Credit Union.
The government’s investigation revealed that Tarver used the embezzled funds for a variety of personal expenditures, including home improvements, recreational vehicles, travel, and dining. Tarver also provided the embezzled funds directly to other people as gifts or loans. In total, Tarver embezzled approximately $1,023,000 from the companies.
U.S. District Judge James Peterson scheduled sentencing for December 5, 2019 at 1:00 p.m. Tarver faces a maximum penalty of 20 years in federal prison. The charge against him is the result of an investigation by the Federal Bureau of Investigation and the Cassville Police Department. The prosecution of this case is being handled by Assistant U.S. Attorney Aaron Wegner.
Mail carrier charged with stealing reward certificates on his route in MentorRead the Press Release
A mail carrier from Painesville was charged with stealing reward certificates from the mail.
Keith Ludrowsky, 55, was charged via criminal information with one count of one count of theft of mail by a postal employee.
According to the information:
Ludrowsky, while on his mail route, identified mail in his care that contained Dick’s Sporting Goods rewards certificates. This mail was intended to be delivered to residents on defendant’s route in Mentor. These certificates provided $10, $20, or $50 in store credit for use with online purchases of sporting goods equipment and apparel from Dick’s Sporting Goods.
Ludrowsky, between June 2018 and May 2019, stole and used approximately 61 rewards certificates totaling approximately $690. He completed 11 online transactions with stolen rewards certificates to purchase sporting goods and equipment. All merchandise was mailed to Ludrowsky’s residence.
The case is being handled by Assistant U.S. Attorney Payum Doroodian following an investigation by the U.S. Postal Service – Office of Inspector General.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information is only a charge and is not evidence of guilt. Defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Macomb Mother Pleads Guilty to Wire Fraud Charges Related to Fraudulent Adoption SchemeRead the Press Release
A Macomb County woman pleaded guilty today on charges of wire fraud in connection to an adoption fraud scheme, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by FBI Acting Special Agent in Charge Rainer S. Drolshagen.
Pleading guilty was Tara Lynn Lee, 38, of New Haven, Michigan.
According to court records, Lee operated in Michigan under the name Always Hope Pregnancy and Education Center. Neither Lee nor her organization were licensed by the State of Michigan to facilitate adoptions or match birth mothers to adoptive families. Yet from 2014 to 2018, Lee repeatedly paired birth mothers with adoptive parents. Lee represented herself to adoptive parents as a licensed social worker with a legitimate adoption agency.
During today’s plea hearing, Lee admitted that on several occasions, she matched more than one set of adoptive parents to a birth mother. Other times, Lee matched adoptive parents with birth mothers that did not exist, were not pregnant, or had not decided to place their child into adoption. Lee requested and received payment from prospective adoptive parents for these fraudulent matches. In her plea agreement, Lee admitted to causing a loss over $250,000.
A sentencing date has been set for November 19, 2019 at 11:30 am before United States District Judge Bernard A. Friedman. Lee’s advisory sentencing guideline range is 97-121 months, and Judge Friedman will determine the ultimate sentence imposed.
A webpage has been created to provide case related information to those affected by the offenses. Please visit www.justice.gov/usaeo-edmi and click the link titled U.S. v. Tara Lee.
The case was investigated by the Detroit FBI, and it is being prosecuted by Assistant U.S. Attorney Sara Woodward.
Luzerne County Man Sentenced to Seven Years’ Imprisonment for Distributing Heroin and FentanylRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeffrey Abney, age 29, of Sugar Notch, Pennsylvania, was sentenced on August 15, 2019, by U.S. District Court Judge Malachy E. Mannion, to seven years’ imprisonment and three years on supervised release for distribution and possession with intent to distribute heroin and fentanyl.
According to United States Attorney David J. Freed, Abney previously pleaded guilty and admitted to distributing heroin and fentanyl in the Luzerne County area. In July 2018, investigators made a number of purchases of packets containing heroin laced with fentanyl from Abney, and then obtained a search warrant for Abney’s residence in Sugar Notch, where additional amounts of heroin and fentanyl were found.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms, who were assisted by the Kingston Police Department. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Lockport Man Indicted on Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Gilberto Marchese, a/k/a, Noel, 38 of Lockport, NY, with conspiracy to distribute cocaine, attempted possession with intent to distribute of cocaine, possession with intent to distribute, and distribution of, cocaine, and maintaining a drug-involved premises. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Justin G. Bish, who is handling the case, stated that according to the indictment, between December 2015 and March 27, 2019, the defendant conspired with other individuals to sell cocaine in the Lockport, NY area. In addition, Marchese is accused of using the residence at 150 Grand Street in Lockport, for the purpose of manufacturing, distributing, and using cocaine.
Marchese was arraigned before U.S. Magistrate Judge Michael J. Roemer and released on conditions.
The indictment is the culmination of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Niagara County Drug Task Force, under the direction of Niagara County Sheriff James Voutour.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Lewis County Man Sentenced to 101 Months on Drug and Firearms ConvictionsRead the Press Release
SYRACUSE, NEW YORK – Victor Ehlers, age 37, of Lyons Falls, New York, and Lowville, New York, was sentenced today to serve 101 months in prison, followed by a 3 year term of supervised release, for possessing methamphetamine with intent to distribute it, possession of a firearm in furtherance of a drug trafficking crime, and possession of firearms and ammunition by a drug user.
The announcement was made by United States Attorney Grant C. Jaquith, Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division, and New York State Police Superintendent Keith Corlett.
In March 2018, Ehlers manufactured and sold methamphetamine out of his home in Lyons Falls, New York. Ehlers kept multiple firearms in his home, among other reasons to further his drug trafficking activities. Included among Ehlers’s firearms were a machinegun and silencers in operating condition.
This case was investigated by the DEA, the New York State Police-Community Narcotics Enforcement Team (NYSP-CNET), the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Lewis County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Michael D. Gadarian, with assistance from the Lewis County District Attorney’s Office.
Justice Department Sues to Block Sabre's Acquisition of FarelogixRead the Press Release
The Department of Justice filed a civil antitrust lawsuit today seeking to block Sabre Corporation’s $360 million acquisition of Farelogix, Inc. The Department said that Sabre and Farelogix compete head-to-head to provide booking services to airlines. Booking services are IT solutions that allow airlines to sell tickets and ancillary products through traditional brick-and-mortar and online travel agencies to the traveling public. The Department said that the acquisition would eliminate competition that has substantially benefitted airlines and consumers.
The Antitrust Division’s lawsuit alleges that the transaction would allow Sabre, the largest booking services provider in the United States, to eliminate a disruptive competitor that has introduced new technology to the travel industry and is poised to grow significantly.
“Sabre’s proposed acquisition of Farelogix is a dominant firm’s attempt to take out a disruptive competitor that has been an important source of competition and innovation,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “If allowed to proceed, the acquisition would likely result in higher prices, reduced quality, and less innovation for airlines and, ultimately, traveling American consumers.”
As alleged in the complaint, Sabre is the dominant provider of booking services in the United States with over 50 percent of airline bookings through travel agencies. Sabre operates a global distribution system, or GDS, which is a digital platform that provides booking services to airlines in addition to other functionality. For many years, Sabre has operated outdated technology and resisted innovation. Farelogix is an innovative technology company that has stepped in to address the needs of airlines and their customers.
As alleged in the complaint, Farelogix has injected much-needed competition and innovation into stagnant booking services markets. Airlines have successfully leveraged their ability to turn to Farelogix to negotiate lower fees with Sabre and the other GDSs, and to reduce their reliance on GDSs for booking services. Farelogix has also pioneered the development of new technology that empowers airlines to make a wider array of offers to travelers who book tickets through travel agencies. This new technology enables airlines to make more varied and personalized offers to consumers who book through travel agents, including bundles of ancillary products such as wi-fi, lounge passes, entertainment options, and meals – choices not available to travelers through Sabre’s legacy technology.
According to the complaint, filed in the U.S. District Court for the District of Delaware, Sabre executives have acknowledged that acquiring Farelogix would eliminate a competitive threat and further entrench Sabre in booking services. For example, on the day Sabre announced its intention to buy Farelogix, Sabre’s chief sales officer texted a colleague that one major U.S. airline would “hate” it. The colleague replied, “Why, because it entrenches us more?” Similarly, a Farelogix executive observed that buying the company would allow Sabre to “tak[e] out a strong competitor vs. continued competition and price pressure.”
As alleged in the complaint, Sabre’s attempt to acquire Farelogix follows many other attempts by Sabre to neutralize its competitor, including a campaign to “shut down Farelogix.” Indeed, Farelogix has long complained about Sabre’s tactics, alleging that Sabre has sought to stifle competition. For example, in 2013, Farelogix’s CEO alleged that “Sabre has wielded its monopoly power in an attempt to destroy Farelogix and prevent competition. . . .” And just last year, Farelogix’s CEO told European antitrust authorities that Sabre and the other two major GDSs “continue to leverage significant market power to preserve their market position and stifle innovation.” Now that Farelogix has gained a foothold in booking services and is poised to grow, Sabre seeks to eliminate this scrappy competitor once and for all by acquiring it.
Sabre Corp. is a Delaware corporation headquartered in Southlake, Texas. Sabre operates the largest global distribution system in the United States. Sabre’s 2018 revenues were approximately $3.9 billion.
Farelogix, Inc. is a Delaware corporation headquartered in Miami, Florida. Farelogix offers a next-generation booking services solution, known as Open Connect. In 2018, Farelogix earned approximately $42 million in revenues.
Jury Convicts Armed Bank Robber After Two-Day TrialRead the Press Release
ALBANY – The final defendant charged in the armed robbery of an Albany, Georgia bank was found guilty by a federal jury late Tuesday afternoon following a two-day trial, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Shataz Hampton, 25, of Albany, was found guilty of one count Bank Robbery and one count Brandishing a Firearm. Mr. Hampton’s trial began on Monday, August 19, 2019 and was presided over by U.S. District Judge Leslie Gardner. Earlier this year, Mr. Hampton’s co-defendant, Kamilyah Whitlock, 25, of Albany, was found guilty by a citizen jury on the same criminal charges following a four-day trial in February. The penalty for these crimes are a maximum 25 years for Bank Robbery and a maximum of life in prison for Brandishing a Firearm. Ms. Whitlock will be sentenced on September 4, 2019 at 10 a.m. A sentencing date has not been set for Mr. Hampton. Mr. Hampton and Ms. Whitlock were masked and armed when they robbed The Renasant Bank on North Westover Boulevard in Albany, Georgia on November 6, 2017. There were more than a dozen customers and employees inside.
“The citizens of Southwest Georgia will not stand for violence in their community. With this final conviction, both offenders will be held accountable for their crimes” said U.S. Attorney Charlie Peeler. “I want to thank the investigators with the Albany Police Department and the FBI for their work in this case.”
The case was investigated by the Albany Police Department and the FBI. Assistant U.S. Attorney Leah McEwen is prosecuting 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.
Johnson City Man Pleads Guilty to Sexually Exploiting a Child and Child Pornography OffensesRead the Press Release
SYRACUSE, NEW YORK – Michael Rushmer, age 47, of Johnson City, New York, pled guilty today to one count of sexual exploitation of a child, one count of distribution of child pornography, and one count of possession of child pornography, 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 his guilty plea Rushmer admitted that he created sexually explicit images and videos of a minor (including secretly recording the victim engaged in sexual acts), and that he distributed some of those images and videos to other persons over the internet. Rushmer further admitted that he also possessed hundreds of images and videos depicting child pornography on his electronic devices, some of which included children under the age of 12.
Sentencing is scheduled for December 17, 2019 in Binghamton before Senior United States District Judge Thomas J. McAvoy. Rushmer faces a minimum sentence of 15 years and up to 30 years in prison for the sexual exploitation of a child, between 5 and 20 years in prison for his distribution of child pornography, and up to 20 years in prison for his possession of child pornography. Rushmer will also 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, the Johnson City Police Department, the Broome County Sheriff’s Department, and the Broome County District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorneys Michael D. Gadarian and Sahar Amandolare.
This case is being prosecuted 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
International Law Enforcement Cooperation Leads to Brazilian Takedown of Significant Human SmugglersRead the Press Release
Earlier today, extensive coordination and cooperation efforts between United States and Brazilian law enforcement and prosecution authorities culminated in the Brazil Federal Police (DPF) conducting a significant enforcement operation to disrupt and dismantle a transnational criminal organization. The human smuggling organization targeted is alleged to be responsible for the illicit smuggling of scores of individuals from East Africa and the Middle East, into Brazil, and ultimately to the United States. The enforcement operation included the execution of multiple search warrants and the arrests of three prolific, Brazil-based human smugglers on Brazilian charges: Abdifatah Hussein Ahmed (a Somalian national); Abdessalem Martani (an Algerian national); and Mohsen Khademi Manesh (an Iranian national).
“We commend today’s efforts by our Brazilian counterparts to take decisive action under their recently enacted human smuggling laws against criminal networks that threaten the national security of Brazil, the United States and other nations,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Such collaborative efforts with our foreign law enforcement partners show our collective resolve to hold international human smugglers to account to the fullest extent of the law.”
Assistance provided by U.S. authorities was coordinated under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department, Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
HSI Boston led U.S. investigative support efforts, working in concert with HSI Brasilia, HSI San Diego, the HSI Human Smuggling Unit ECT program, Enforcement and Removal Operations, the International Organized Crime Intelligence and Operations Center, the HSI Liaison to the U.S. Department of Defense, U.S. Southern Command, Operation CITADEL, BITMAP, and the National Targeting Center – Investigations. The Justice Department, both Criminal Division’s HRSP and the Office of International Affairs, provided significant legal and other assistance in this matter.
International Drug Conspiracy Sends Galveston Man to Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas – A 24-year-old Galveston resident has been sentenced in Corpus Christi federal court for conspiring to possess with intent to distribute almost six kilograms of pure methamphetamine, announced U.S. Attorney Ryan K. Patrick. Francisco Javier Castillo Jr. pleaded guilty Nov. 15, 2018.
Today, Senior U.S. District Judge John D. Rainey handed Castillo a 157-month sentence to be immediately followed by four years of supervised release. At the hearing, additional evidence was also provided that detailed Castillo’s role within the drug trafficking organization. In handing down the sentence, the court concluded Castillo was a manager or supervisor in a criminal organization that imported methamphetamine from Mexico and that the lengthy sentence was appropriate given the amount of methamphetamine involved.
Authorities had determined Castillo was part of a drug trafficking organization responsible for importing kilograms of methamphetamine into the United States from Mexico. Castillo was responsible for recruiting individuals to drive vehicles loaded with narcotics across the international border. He also supervised the individuals as they drove the narcotics to their ultimate destination within the United States.
He was ultimately found responsible for the importation and transfer of 5.95 kilograms of pure methamphetamine.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Robert D. Thorpe Jr. prosecuted the case.
Inscription House Man Sentenced to Prison for AssaultRead the Press Release
PHOENIX, Ariz. – This week, Eric Kinney, of Inscription House, Ariz., was sentenced by U.S. District Judge Steven P. Logan to 24 months of imprisonment followed by three years of supervised release. Kinney had previously pleaded guilty to assault with a dangerous weapon.
On August 9, 2018, Kinney went into the victim’s house with an axe. Once inside, Kinney pushed the victim against a wall while holding the axe in a threatening manner. The assault occurred on the Navajo Nation Indian Reservation, and Kinney is an enrolled member of the Navajo Nation.
The investigation in this case was conducted by the Navajo Nation Division of Public Safety and the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
Illegal Alien indicted on reentry chargeRead the Press Release
ELKINS, WEST VIRGINIA – Omar Antonio Murillo-Bonilla, a citizen of Honduras, was indicted by a federal grand jury today for an immigration violation, United States Attorney Bill Powell announced.Murillo-Bonilla, age 32, was indicted on one count of “Reentry of Removed Alien.” Murillo-Bonilla is accused of reentering the country illegally after being removed twice before. The crime allegedly occurred in August 2019 in Jefferson County.
Murillo-Bonilla faces up to two years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jeffrey A. Finucane is prosecuting the case on behalf of the government. The Department of Homeland Security Immigrations and Customs Enforcement and the Jefferson County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Hundreds of Fugitives Arrested, Firearms and Illegal Drugs Seized During Violent Crime InitiativeRead the Press Release
U.S. Attorney Tim Garrison (right) was joined by Missouri Governor Mike Parson and law enforcement officials to announce the results of Operation Triple Beam and discuss efforts to combat violent crime.KANSAS CITY, Mo. – Operation Triple Beam, an initiative led by the U.S. Marshals Service to track down some of the metropolitan area’s most violent and persistent offenders, resulted in hundreds of arrests and the seizure of dozens of firearms and illegal drugs. Results of the 10-week initiative were announced today by U.S. Attorney Tim Garrison, U.S. Marshal Mark James, and Missouri Governor Mike Parson.
“Operation Triple Beam brought a laser focus by all levels of law enforcement – federal, state, and local – to combat violent crime by targeting the worst offenders,” Garrison said. “Armed and dangerous fugitives were located, arrested, and taken off the street to face justice in state and federal court.
“We are marshaling federal resources to combat intolerable levels of violent crime, and working closely with our partners at the state and local level,” Garrison added. This week, three prosecutors from the Missouri Attorney General’s Office were designated as new Special Assistant U.S. Attorneys to prosecute violent offenders in federal court in Kansas City, Mo.
During Operation Triple Beam, which ran from late May to the middle of August, law enforcement officers made 355 state and federal arrests for outstanding warrants, violent crimes, and drugs. Many of the arrestees were among the most violent and active offenders in the Kansas City metropolitan area, and many of these fugitives had multiple outstanding warrants from more than one agency.
Law enforcement officers seized 69 firearms, more than 2,000 rounds of ammunition, and 4.4 kilograms of illegal drugs (including methamphetamine, heroin, cocaine, and marijuana). Many of those apprehended during Operation Triple Beam now face new charges for drugs and firearms possession in both state and federal courts.
“I want to thank the brave and dedicated officers, deputies, and agents who worked tirelessly around the clock to go after and bring these predators to justice,” James said. “The violence terrorizing our communities and neighborhoods must stop, but law enforcement cannot do it alone. We need citizens to pick up the phone and call the Crime Stoppers hotline. The reward has been increased to $25,000 and TIPS remain completely anonymous.
“The United States Marshals Service in conjunction with our local, state, and federal partners will not rest while violent criminals victimize our community,” James said. “If you’re a fugitive, surrender now.”
The goal of Operation Triple Beam was to apply resistance to the overall spike in violent crime and gun-related violence that peaks during the summer months. The operation focused on individual violent offenders and gang members who have shown a propensity to commit repeated violent acts against persons. Departments with proactive units were asked to target their enforcement activities under this initiative with a focus on arresting subjects who are involved in drug trafficking activities and the illegal possession/use of firearms. The intent was to remove subjects from the street who are responsible for fueling violent crime in the community and to seize illegally possessed drugs and firearms that are at the center of their violent activities.
The arrest types were as follows: drugs-117, weapons-71, burglary-25, assault-22, vehicle theft-17, fraud-14, robbery-10, homicide-8, sexual offenses-6, sexual assault-4, arson-1, failure to register as a sex offender-1, other crimes-59.
The U.S. Marshals Service provided equipment, training, investigative expertise, and overtime to assist local agencies in the endeavor. Operation Triple Beam included the Kansas City, Mo., and Independence, Mo., police departments, the sheriff’s departments from Platte, Clay, Jackson and Cass counties, the Missouri State Highway Patrol, the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration.
The U.S. Marshals Midwest Violent Fugitive Task Force-Kansas City Division operates in conjunction with members of the Kansas City, Mo., Police Department, the Independence, Mo., Police Department, the Jackson County, Mo., Sheriff’s Department, the Missouri State Highway Patrol, and other federal law enforcement partners. The task force objectives are to seek out and arrest fugitives charged with violent crimes, drug offenses, sex offenses, and other serious felonies. Nationally, the U.S. Marshals Service fugitive programs are carried out with local law enforcement in 94 district offices, 67 local fugitive task forces, eight regional task forces, as well as a growing network of offices in foreign countries.
TIPS Hotline
Tips can be submitted anonymously to the Greater Kansas City Crime Stoppers via the TIPS hotline at 816-474-8477, on the internet at KCcrimestoppers.com or on the free mobile app available at P3Tips.com. Tips can also be submitted to the U.S. Marshals service directly and anonymously by downloading the USMS Tips app to your Apple or Android device. It can also be accessed online at https://www.usmarshals.gov/tips/index.html.
Project Safe Neighborhoods
Operation Triple Beam is part of a strategy to combat violent crime and drug trafficking in the Western District of Missouri in support of the district’s renewed Project Safe Neighborhoods program.
Project Safe Neighborhoods is a nationwide initiative that brings together federal, state, and local 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. Project Safe Neighborhoods empowers each U.S. Attorney’s Office to develop targeted, localized violent crime reduction strategies, tailoring solutions to each individual community with the resources of the Department of Justice and the cooperation of community members.
The Project Safe Neighborhoods effort in this district consists of the federal and local law enforcement agencies, as well as the Kansas City Crime Commission, and several prominent members of our community with law enforcement experience, including former Kansas City Police Department officials, former federal prosecutors, retired federal agents, and former U.S. Attorneys.
Human Trafficker Sentenced to 24 Months in Federal PrisonRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces that on August 15, 2019, United States District Court Terry F. Moorer sentenced Tee-Henry Wulu Currens, 22, to 24 months in federal prison for the violation of 18 United States Code 2421-- Transporting Any Individual in Interstate Commerce Intending to that Individual Engage in Prostitution. Judge Moorer considered Currens’s actions on the day he was arrested, as well as his conduct during his interview with a United States Probation Officer, which necessitated extra jail security in order to ensure her safety.
United States Attorney Moore said, “I want to congratulate both the Robertsdale Police Department and the Department of Homeland Security in Mobile for successfully pursuing this case. These human trafficking cases are often difficult to investigate and to prosecute but the Robertsdale Police Department and HSI stepped up on this case and did the hard work to bring this trafficker to justice. We do not have to accept that some people in our society will become sexual slaves. Both law enforcement and our community have a role to play in disrupting the traffickers’ trade.”
According to documents filed in connection with his guilty plea, in January 2019, Currens first met the female victim while she was working as a prostitute in Jacksonville, Florida, initially becoming her client. Soon after, Currens volunteered to work as his victim’s driver and provide her with security. The victim told investigators that Currens became abusive, controlling, and forced her to meet with clients, and Currens would subsequently keep all the money from the trafficking event. The victim stated that Currens would force her to have sex with clients and that he would physically beat her if she refused to be trafficked.
On or about March 1, 2019, Currens drove the victim from Panama City, Florida to the Mobile, Alabama area for the purpose of trafficking her during Mardi Gras celebrations.
On March 02, 2019, the Robertsdale Police Department received a 911 call from the victim, who had managed to get away from Currens during a stop at a local gas station. The victim reported that she had been kidnapped by Currens out of Florida and brought to Alabama to engage in prostitution. Upon their arrival, Robertsdale Police noted the victim was visibly upset and had bruising on her head, face, and legs consistent with assault.
Currens made post Miranda statements to law enforcement and admitted to the victim’s account of how the two had met. Currens also admitted that the two were from Florida and travelling to Mobile for the purpose of having the victim engage in prostitution. He stated they had argued while in Florida, where the victim had asked that he leave, but Currens refused.The Robertsdale Police Department, along with Department of Homeland Security, Mobile Field Office, investigated this case. “Human trafficking is a form of modern-day slavery, and the threats and abuse inflicted on these particular victims only adds to the heinous nature of the crime,” said Special Agent in Charge of Homeland Security Investigations Atlanta Nick S. Annan. “HSI is committed to working with our law enforcement partners to find and prosecute criminal traffickers while ensuring the victims of this terrible crime are rescued and get the care they need.”
Locally, The Rose Center in Mobile, is a drop-in center specializing in providing services and resources for victims of human trafficking. Alabama Director Crystal Yarbrough commented, “Today was a major victory for the women in our community who have had their voices silenced for far too long. Today the judge demonstrated that violence against women and the objectification of women will not be tolerated. This is an exciting day!”
Assistant United States Attorney Christopher Baugh prosecuted the case for the United States Attorney’s Office for the Southern District of Alabama.
Houston Personal Injury Attorneys and Case Runners IndictedRead the Press Release
HOUSTON – A 21-count superseding indictment has been unsealed alleging conspiracy, witness tampering, obstruction of justice and multiple tax violations in a barratry scheme, announced U.S. Attorney Ryan K. Patrick.
Houston personal injury attorneys Jeffrey Stern, Deborah Bradley and Richard Plezia are charged with conspiracy and tax violations along with legal-assistant Frederick Morris and clinic-owner Lamont Ratcliff. Stern is also charged with witness tampering and obstruction of justice.
Stern made his initial appearance yesterday and was temporarily ordered into custody pending a detention hearing set for Aug. 22, at 1:00 p.m. Bradley and Ratcliff were permitted release upon posting bond. Plezia is expected to make his initial appearance later this week.
Morris made his initial appearance earlier and has since pleaded guilty. He was permitted to remain on bond.
The charges against Stern and his alleged co-conspirators stem from a long-running criminal scheme to evade taxes. Stern also allegedly obtained his personal injury cases through barratry - the illegal practice of soliciting law firm clients by paying kickbacks to middlemen known as “case runners.”
Stern and his co-conspirators sought to enrich themselves by illegally recruiting clients through the payment and receipt of illegal kickbacks in order to generate personal injury cases and legal fees, according to the charges. They allegedly worked to conceal and disguise the payments and hide their resulting income from the IRS by filing false documents with them. These allegedly included tax returns, 1099 forms and an offer in compromise that falsely reported material information including amounts of income, expenses and taxes due and owing.
Once Stern became aware of the investigation, he allegedly worked to obstruct justice by ordering others to destroy subpoenaed documents and instructing co-conspirators not to cooperate.
According to the indictment, Stern employed multiple devices to disguise his illegal kickback payments to case runners as legitimate referral fees paid to attorneys or as other types of legitimate payments that would be deductible under the tax laws. Stern allegedly funneled kickback payments to case runners Ratcliff and Marcus Esquivel (charged in a separate case) through the accounts of Bradley and Plezia. The charges allege Stern claimed the payments were legitimate referral fees to Bradley and Plezia rather than illegal kickbacks to Ratcliff and Esquivel.
The indictment also alleges Stern wrote referral fee checks in the names of attorneys who never received the checks. Instead, Morris would allegedly cash the checks with forged endorsements at check-cashing locations and use the funds to pay illegal kickbacks owed to himself and other case runners for Stern’s referrals.
Stern allegedly also filed 1099 forms that falsely reported to the IRS the nature of the payments and to whom they were made. On his tax returns, Stern falsely reported the illegal, non-deductible kickback payments as legitimate, deductible business expenses, which greatly reduced his tax burden, according to the charges.
Bradley and Plezia allegedly filed false tax returns to facilitate the scheme. Ratcliff failed to report many of the kickback payments he received as income on his company’s tax returns, according to the charges. Stern and Morris also allegedly caused another attorney to file false tax returns and a false offer in compromise with the IRS to help cover-up the scheme.
All defendants are charged with conspiracy to defraud the United States. If convicted, they each face up to five years in prison. For willfully filing a false tax return, Stern, Ratcliff and Bradley face another three years of imprisonment. Aiding and assisting in the preparation and presentation of false tax returns carries another potential three-year-term, for which Stern and Morris are charged. If convicted of witness tampering or obstruction of justice, Stern could be sentenced up to 20 and 10 years, respectively.
Morris entered a guilty plea Aug. 8, 2019, to the conspiracy. He is set for sentencing in February 2020.
IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney Robert S. Johnson is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Housing Authority Member Indicted for BriberyRead the Press Release
McALLEN, Texas – A La Joya Housing Authority Board member has been arrested on charges of federal program bribery regarding a city public relations contract, announced U.S. Attorney Ryan K. Patrick.
Sylvia Garces Valdez was taken into custody yesterday after which she made her initial appearance before U.S. Magistrate Judge Peter Ormsby. She is set for trial Oct. 8, 2019.
According to the indictment, from June to approximately November 2018, Valdez agreed to give more than $5,000 to someone with the intent to influence an elected official for the City of La Joya. The purpose of the alleged bribe was for their influence in granting a public relations contract to Valdez.
If convicted, she faces up to 10 years in federal prison. The government is also seeking forfeiture of $10,000.
The FBI and Department of Housing and Urban Development—Office of the Inspector General conducted the investigation. Assistant U.S. Attorneys Sarina S. DiPiazza and Roberto Lopez Jr. are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.
Honduran Man Sentenced for Illegally Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that OLIVER MARTINEZ-CASTRO, age 19, a native of Honduras, was sentenced today after previously pleading guilty to illegally using a Social Security number in order to obtain employment, in violation of Title 42, United States Code, Section 408(a)(7)(B).
United States District Court Judge Wendy B. Vitter sentenced MARTINEZ-CASTRO to time served (2 months of imprisonment), and a $100 special assessment fee. The defendant will be surrendered to the custody of Immigration and Customs Enforcement for removal proceedings.
According to court documents, on June 14, 2019, MARTINEZ-CASTRO submitted a fraudulent Form I-9 application in order to obtain employment with a local company. He attested on the form that he was someone else and that he was a United States citizen. He used a fraudulent Social Security card in the name of the other person which also contained that person’s actual Social Security number as verification. In order to finalize employment with that company, he was required to take a safety course at another location on June 18, 2019. He once again provided the fraudulent Social Security card as proof of his identity, but an employee suspected the card was fraudulent and alerted Customs and Border Protection. Subsequent record checks confirmed his real identity as well as the fact that he was in the country illegally.
U.S. Attorney Strasser praised the work of United States Customs and Border Protection and Social Security Administration agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
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Hartselle Man Sentenced to 12 ½ Years in Prison for Distributing Substance Laced with FentanylRead the Press Release
BIRMINGHAM –A federal judge yesterday sentenced a Hartselle man for distributing a substance laced with fentanyl, announced U.S. Attorney Jay E. Town and Drug Enforcement Administration Assistant Special Agent in Charge Clay Morris.
U.S. District Judge R. David Proctor sentenced Michael Anthony Sain, 32, to 151 months in prison. Sain pled guilty in November 2018, to one-count of unlawfully distributing a substance containing detectable amounts of fentanyl that caused serious bodily injury to an individual, resulting from the use of the substance.
“The battle to save our young people from overdosing on fentanyl and other dangerous drugs is one we must win,” Assistant United States Attorney Robert Becher said. “The drug dealers in North Alabama need to know that we will prosecute them vigorously and that they will spend a substantial portion of their lives behind bars.”
“Time and time again we have warned drug dealers that we will relentlessly and aggressively bring them to justice in order to protect our children and communities,” Morris said. “Today, we have another example of a drug dealer who did not heed our warnings. “Prison awaits those who deal with destruction and we will not sit idly by."
DEA investigated the case, which Assistant U.S. Attorney Robert Becher, Sr. prosecuted.
Harrison County man indicted on firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Matthew Scott Collins, of Stonewood, West Virginia, was indicted by a federal grand jury today on firearms charges, United States Attorney Bill Powell announced.
Collins, age 36, was indicted on one count of “Unlawful Possession of a Firearm,” one count of “Possession of Stolen Firearm,” and one count of “Possession of Unregistered Silencer.” Collins, a person prohibited from having a firearm, is accused of having a .22 caliber rifle, a 9mm pistol, and a .223 caliber rifle in Barbour County in July 2018. All three firearms are stolen. Collins is also accused of having an unregistered .300 caliber silencer.
Collins faces up to 10 years incarceration and a fine of up to $250,000 for each of the unlawful possession and the stolen firearm counts. He also faces up to 10 years incarceration and a fine of up to $10,000 fine for the silencer count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.