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9 September 2019
Former Prison Guard and Mother of Inmate Plead Guilty to Drug Trafficking OffensesRead the Press Release
CHARLESTON, W.Va. – A former Huttonsville Correctional Center guard and the mother of Huttonsville inmate pled guilty to drug trafficking offenses, announced United States Attorney Mike Stuart. Mark Steven Taylor, 40, of Richwood, pled guilty to possession with intent to distribute methamphetamine and heroin. Pamela Gail Adkins, 44, of Oak Hill, pled guilty to distribution of methamphetamine and heroin.
“An officer of the law gone bad. The actions of both Taylor and Adkins are incomprehensible,” said United States Attorney Mike Stuart. “A corrections officer, who is supposed to uphold the law, takes money to act as a drug courier and a mother who is trying her best to distribute meth and heroin to her incarcerated son. Unbelievable. Despicable. And just plain wrong. We’re working hard with federal, state and local law enforcement to stop the flow of drugs into correctional facilities.”
Taylor admitted on February 26, 2019, while employed as a Corrections Officer at the Huttonsville Correctional Center, Adkins gave him quantities of methamphetamine and heroin to smuggle into the prison. He further admitted that she paid him $500, and that he had smuggled drugs into Huttonsville on one prior occasion. Adkins admitted giving Taylor the drugs and paying him to smuggle them into the prison where her son was incarcerated.
After being alerted to the scheme by Huttonsville Correctional Center Investigators, members of the Central West Virginia Drug Task Force arrested Adkins and Taylor at set up surveillance in Craigsville where they observed Adkins give Taylor the package containing methamphetamine and heroin.
Both Adkins and Taylor face up to 20 years in prison when sentenced on January 13, 2020.
The Huttonsville Correctional Center and the Central West Virginia Drug Task Force conducted the investigation. Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Joshua C. Hanks is handling the prosecution.
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Former Portland Resident Sentenced to 270 Years in Federal Prison for Sexually Exploiting Children while BabysittingRead the Press Release
PORTLAND, Ore.—After years of contentious litigation and attempts to obstruct justice, Andrew Franklin Kowalczyk, 44, formerly of Portland, was sentenced today to 270 years in federal prison followed by a life term of supervised release for the repeated sexual abuse, exploitation and torture of three young children.
On December 6, 2018, after a four-day trial and deliberating for just 20 minutes, a federal jury in Portland convicted Kowalczyk on nine counts of producing child pornography.
“Andrew Kowalczyk’s abuse and torture of his victims was unthinkable and will forever impact their lives,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Kowalczyk tried every conceivable tactic to delay prosecution and rob his young victims of the justice they deserve. Today his attempts to delay punishment for his horrific crimes have ended.”
“First and foremost, I commend the victims and their families for the strength they exuded while cooperating with a very difficult investigation,” said Brad Bench, Special Agent in Charge of HSI Seattle. “Individuals like Kowalczyk, who prey on those they are charged to care for, are extremely dangerous to our children and the community. HSI, along with our law enforcement partners, are committed to bringing these appalling crimes to an end.”
“One victim in this case asked Kowalczyk “why” he committed these horrible acts of violence. We can finally say to this now-young woman that Kowalczyk will never be able to hurt a child again. The bravery, resolve and strength this young woman demonstrated throughout this investigation is a big reason why,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.
According to court documents and information shared during trial, law enforcement first learned of Kowalczyk’s abuse in early 2008. On December 27, 2007, a Des Moines, Washington police officer stopped Kowalczyk for several traffic violations. Kowalczyk did not own the vehicle he was driving, did not have a driver’s license and gave the officer a false name. After refusing the officer’s request to step out of the vehicle, Kowalczyk fled, leading police on a high-speed chase that was later terminated for public safety reasons.
Kowalczyk was later located at the Northwest Motor Inn in Puyallup, Washington. A records check run on the alias used by Kowalczyk to book his hotel room returned an outstanding arrest warrant for failing to appear in an unlawful use of a weapon case in Washington County, Oregon. Kowalczyk was arrested early the next morning when attempting to leave the hotel in a cab. Officers seized Kowalczyk’s personal belongings including several pieces of luggage and a backpack.
In January 2008, Puyallup police detectives sought and obtained a state warrant to search computer equipment, a digital camera and digital storage devices found in Kowalczyk’s luggage. The search returned a tremendous amount of child pornography including a number of images and videos that appeared to be homemade. Numerous videos and images depicted an unidentified male sexually abusing two very young children. Metadata embedded in many of the digital images revealed that they were created using the same camera found in Kowalczyk’s luggage.
Puyallup Police officers later published certain non-pornographic images of the victims and an adult woman found on Kowalczyk’s devices in an attempt to identify the victims. An adult woman, later identified as the victims’ mother, saw the images and contacted Puyallup Police. She confirmed she knew Kowalczyk and that he had regular access to her daughters in Portland. After reviewing some of the images seized, the victims’ mother was able to identify locations where the images were taken.
The victims’ mother told investigators she met Kowalczyk, a friend of her deceased brother, in 2003. In 2005, after the victims’ mother and her children wound up in a domestic violence shelter, Kowalczyk offered to pay for them to stay in a motel. Between April and the beginning of June 2005, Kowalczyk arranged for the victims’ mother and her children to stay with or adjacent to him in three different Portland motels. Kowalczyk and the victims’ mother later rented separate apartments.
The victims’ mother frequently left her children alone in Kowalczyk’s care while she searched for work or housing. The victims’ mother believed Kowalczyk treated the victims well, buying them clothing, diapers, shoes, and even a birthday cake for their second birthday and was unaware of the abuse that transpired. The cake—with the victims’ names on it—appeared in some of the non-pornographic images found on Kowalczyk’s devices.
Investigators were later able to track down the Portland motel rooms Kowalczyk rented for the family. Kowalczyk took photos of himself sexually abusing two of the minor victims at each location. He took sexually explicit photos of the third minor victim at his apartment in Southeast Portland. In March 2008, investigators conducted a federal search warrant of a storage locker Kowalczyk rented in Woodlawn, Washington. They found a sofa, a mirror and several shirts depicted in the pornographic images found on Kowalczyk’s devices.
A federal grand jury charged Kowalczyk with a single count of sexual exploitation of children on February 2, 2008. A superseding indictment with eight additional counts of sexual exploitation of children was returned on March 21, 2012.
Since he was first indicted in February 2008, Kowalczyk sought the replacement of counsel more than a dozen times and filed extensive motions to suppress evidence, causing a decade-long delay in bringing the case to trial. Amidst his in-court attempts to delay, Kowalczyk also obstructed or attempted to obstruct justice from prison by asking his father to retrieve incriminating hard drives before they could be seized by law enforcement and soliciting the murder of an Assistant U.S. Attorney.
The case was investigated by Homeland Security Investigations (HSI), the FBI, the Portland Police Bureau, and the Puyallup and Des Moines, Washington Police Departments. It was prosecuted by Scott M. Kerin and Gary Y. Sussman, Assistant U.S. Attorneys for the District of Oregon.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at www.fbi.gov/tips.
Former Pittsburgh Man Pleads Guilty in Conspiracy to Distribute Fentanyl AnalogueRead the Press Release
PITTSBURGH, PA - A former resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of conspiracy to distribute and possession with intent to distribute an analogue of fentanyl, United States Attorney Scott W. Brady announced today.
Anthony Lozito, age 40, pleaded guilty to two counts before Senior United States District Court Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from May 2017 to August 2017, Lozito conspired with others to distribute and possess with intent to distribute cyclopropyl fentanyl, an analogue of fentanyl. Lynell Guyton purchased large quantities of fentanyl analogues from overseas purveyors, which he distributed in Western Pennsylvania. On August 9, 2017, law enforcement executed a search warrant at Lozito’s residence on Bond Street. Guyton was found on the first floor along with Lozito and two other individuals. Large amounts of narcotics and packaging paraphernalia were present in the house. A table with powder narcotics was overturned during the initial SWAT entry into the home, causing large amounts of opioids to become airborne. SWAT officers exposed to the airborne narcotics were sent to Mercy for evaluation–everyone was medically cleared and no one was harmed. Law enforcement also executed a search warrant on Lakewood Avenue and found another individual and opioids at the residence. A total of 235 grams of cyclopropyl fentanyl was recovered from both residences. Lozito admitted to allowing Guyton to use his home to package narcotics in exchange for the anticipated receipt of opioids.
Judge Cercone scheduled sentencing for January 21, 2020. The law provides for a maximum total sentence of not less than five years and up to life in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Pending sentencing, the court ordered Lozito to remain detained.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The U.S. Immigration and Customs Enforcement’s (ICE)/Homeland Security Investigations (HSI), assisted by the United States Postal Inspection Service, the Pennsylvania State Police and the Pittsburgh Bureau of Police, including the Pittsburgh Police SWAT Team, conducted the investigation leading to the Indictment in this case.
Former Owner of Trailblazers, Inc. Pleads Guilty to Bankruptcy FraudRead the Press Release
LEXINGTON, Ky. – Barry E. Sanders,63, the former owner and CEO of Trailblazers, Inc., an auto and truck parts supply business formerly located in Lexington, pleaded guilty in U.S. District Court Monday to violating U.S. bankruptcy laws.
Appearing in U.S. District Court, Sanders admitted that while Trailblazers, Inc., was in the process of contemplating bankruptcy in the summer of 2013, he transferred $315,000 from the business to his personal banking accounts using four cashier’s checks. Sanders then knowingly concealed the receipt of those funds, by failing to report the cash transfers on Trailblazers’ corporate bankruptcy filings in August 2013, as was required by law.
“The defendant took advantage of a process designed to aid troubled businesses,” said United States Attorney Robert M. Duncan, Jr. “His conviction demonstrates that the government will not tolerate business owners violating the bankruptcy system for personal gain.”
U. S. Attorney Duncan and James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation, jointly announced the guilty plea by Sanders.
The investigation leading to Sanders’ conviction was conducted by the Federal Bureau of Investigation. The United States was represented by Assistant U.S. Attorneys Erin Roth and Will Moynahan.
Senior U.S. District Court Judge Joseph M. Hood accepted the guilty plea of Sanders and set a sentencing date of December 9, 2019. Sanders faces up to five years in prison and a fine of $250,000. Before imposing a sentence, the Court will take into consideration the U.S. Sentencing Guidelines and federal sentencing statutes.
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Former Montgomery County Sheriff’s Officer Pleads Guilty to Child Pornography OffensesRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Matthew Laver, age 38, of Souderton, in Montgomery County, PA, entered a plea of guilty before United States District Judge Michael Baylson to multiple counts of distribution, receipt, and possession of child pornography.
The defendant was indicted in March 2019 after an investigation into the defendant’s collection of almost 4,000 images and videos depicting the sexual abuse of children that he downloaded and distributed to other users on the internet over approximately ten years. The investigation revealed that Laver trafficked in child pornography that depicted children as young as infants being sexually assaulted and raped, and that he did so during the time that he was employed as a Montgomery County Sheriff’s Officer.
“The harm caused by child exploitation is devastating and long-lasting, which is why we prosecute these cases aggressively,” said First Assistant U.S. Attorney Williams. “In this case, the conduct was particularly egregious because the defendant was a member of a law enforcement organization charged with enforcing the law. We stand ready with our federal and local partners to identify and prosecute all those who would prey upon minor children.”
“Law enforcement officers take an oath to serve and protect, thus our conduct must be beyond reproach ,” said Marlon V. Miller, special agent in charge of HSI Philadelphia. “Homeland Security Investigations special agents worked closely with our law enforcement partners to further prevent this perpetrator from victimizing children by distributing images of sexual assault.”
This case is part of Project Safe Childhood (PSC), a nationwide program bringing together all levels of law enforcement and the communities they serve to reduce sexual crimes against children. The Department of Justice and U.S. Attorney’s Offices work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce sexual crimes against children.
The case was investigated by the Department of Homeland Security and the Abington Police Department, and is being prosecuted by Assistant United States Attorneys Eileen Zelek and Michelle Rotella.
Former Manager of Virginia Beach Tax Service Sentenced to PrisonRead the Press Release
NORFOLK, Va. – A North Carolina woman was sentenced today to nearly five years in prison for her role in a conspiracy to prepare false tax returns for her customers.
According to court documents, Markita D. Simon, 32, of Rocky Mount, was the manager of a now-closed, Virginia Beach-based tax preparation service known as Express Tax Preparation Services. From December 2014 to February 2016, Simon was responsible for using false information in her customers’ tax returns in order to generate a higher refund amount. In some cases, she falsely stated that the customer had dependent children so that the customer would qualify for beneficial tax credits. She also filed returns using the names and social security numbers of real persons without their knowledge. The court found that she was responsible for a tax loss of approximately $203,000.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Randy C. Stoker 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-149.
Former Government Official in the Dominican Republic Charged with Conspiring to Import Cocaine into the United States and Money Laundering OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Raymond P. Donovan, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), announced today that the Dominican Republic’s former Consul General to Jamaica, JEREMIAS JIMENEZ CRUZ, and a co-conspirator have been charged in Manhattan federal court with conspiring to import cocaine into the United States and conspiring to launder money. JIMENEZ CRUZ was arrested on September 6 and presented on September 7 before United States Magistrate Judge Sarah Netburn. The second defendant has not yet been arrested. The case has been assigned to United States District Judge Kimba M. Wood.
U.S. Attorney Geoffrey S. Berman said: “Jeremias Jimenez Cruz, the Dominican Republic’s former Consul General to Jamaica, allegedly used his high-level role in Dominican government to traffic large quantities of cocaine into the United States. When senior foreign officials invidiously conduct illegal activity in the United States, this Office and our law enforcement partners will act swiftly and resolutely to bring them to justice.”
DEA Special Agent in Charge Raymond Donovan said: “Greed is the underlying motivation for drug traffickers worldwide. And saving lives is law enforcement’s mission, which leads to investigations like this one; Jeremias Jimenez Cruz is alleged to have used his position and resources to facilitate trafficking cocaine from the Dominican Republic to the United States. This is another example of how DEA and our law enforcement partners are focused on identifying, investigating and dismantling drug trafficking organizations responsible for fueling drug addiction.”
IRS-CI New York Special Agent in Charge Jonathan D. Larsen said: "As alleged, Jimenez Cruz used his high level connections to launder drug proceeds. IRS-CI special agents will continue to work closely with our law enforcement partners globally in following the money to stop the flow of these illicit profits back to the drug trafficking organizations."
According to the allegations in the Indictment[1] and statements made in Court:
JIMENEZ CRUZ is a former high-ranking government official in the Dominican Republic whose positions have included Vice Consul of the Dominican Republic to Germany, Consul General of the Dominican Republic to Jamaica, and president of the National Christian Movement. As alleged, JIMENEZ CRUZ and his co-conspirators used JIMENEZ CRUZ’s position, connections, and private plane to traffic large quantities of cocaine, including for importation to the United States, and to launder drug proceeds.
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JIMENEZ CRUZ, 50, of the Dominican Republic, is charged with two counts: (1) conspiring to import at least five kilograms of cocaine into the United States, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; and (2) conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the DEA. The arrest was the result of an investigation by the New York Strike Force, a crime-fighting unit comprised of federal, state, and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force (OCDETF) and the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA).
The Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA and its Special Operations Division, the New York City Police Department, the New York State Police, New York City Sheriff’s Office, Immigration and Customs Enforcement – Homeland Security Investigations, the U. S. Internal Revenue Service Criminal Investigation Division, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, the U.S. Marshals Service, New York National Guard, the Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department, and New York State Department of Corrections and Community Supervision.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Adam S. Hobson and Mollie Bracewell are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Cape Cod Bookkeeper Indicted on Embezzlement and Federal Tax ChargesRead the Press Release
BOSTON – A Centerville woman was indicted in federal court on five counts of wire fraud and five counts of filing false federal tax returns, stemming from her embezzlement of more than $1 million from a bookkeeping client.
Jessica L. Greenan, 42, of Centerville, formerly an employee of a Cape Cod bookkeeping service, was indicted on wire fraud and false tax return charges related to her embezzlement from a Hyannis client for which she handled bookkeeping and payroll services. It is alleged that beginning in October 2014 and continuing until she was terminated in March 2018, Greenan embezzled $1,135,460. Greenan allegedly wired funds 536 times from the store’s operating bank account to pay her credit cards at Capital One, Citibank, American Express and Bank of America. It is further alleged that Greenan doctored the company bank statements and internal records to make the payments to her credit cards appear as legitimate expenses. Finally, the indictment alleges that Greenan failed to report any of her illegal income to the IRS over the five year duration of the embezzlement scheme, thereby evading payment of more than $ 325,000 in federal taxes.
Each charge of wire fraud carries a maximum sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, restitution and forfeiture. Each charge of filing false tax returns carries a maximum sentence of three years in prison, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorney Victor A. Wild of Lelling’s Securities and Financial Frauds Unit prosecuted the case.
Florida Resident Pleads Guilty to Mail Theft Related to Fraud Scheme Targeting Financial InstitutionsRead the Press Release
PITTSBURGH - A resident of Pembroke Pines, Florida pleaded guilty in federal court to a charge of theft of mail, United States Attorney Scott W. Brady announced today.
Cassio Orville Donald Slowden, age 27, pleaded guilty to one count before United States District Judge Arthur Schwab.
In connection with the guilty plea, the court was advised that in February 2019, Citizens Bank replacement debit cards and PIN reminders were fraudulently ordered for several customers in McMurray, Pennsylvania. On the afternoon of February 11, U.S. mail was delivered to the mailbox of one of the residences in McMurray. Shortly after, Slowden removed several pieces of mail from the mailbox and drove away from the residence. Slowden’s vehicle was stopped by law enforcement, and a search of the vehicle recovered stolen mail, including the Citizens Bank replacement debit card and PIN reminder taken from the mailbox of the McMurray residence.
The Court was further advised that Citizens Bank, Bank of America, and other financial institutions were victims of an ongoing multistate fraud scheme. The scheme involved one or more callers contacting banks and impersonating customers. The caller would order replacement debit cards and debit card PIN reminders to the customer’s address on file. The suspects would intercept the cards and use them to make fraudulent ATM withdrawals. Slowden is connected to at least $116,277.19 in losses related to fraudulent withdrawals from accounts of at least 12 Citizens Bank and Bank of America customers.
Judge Schwab scheduled sentencing for January 28, 2020. The law provides for a maximum total sentence of up to five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The U.S. Postal Inspection Service and U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations conducted the investigation leading to the Indictment in this case.
Five-Time Felon Found Guilty for Illegal Possession of Firearm in Connection with December 2016 GunfightRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Antoni Peralta, 33, of Anchorage, was found guilty on Friday, Sept. 6, 2019, after a three-day federal jury trial. The jury found Peralta guilty of being a felon in possession of a firearm and associated ammunition in connection with the December 2016 gunfight on Donna Road in Anchorage.
According to evidence presented at trial, on the evening of Dec. 16, 2016, Peralta had a confrontation with a man in an Anchorage bar. Peralta then got into his vehicle and left the bar, turning onto Donna Road, out of suspicion that the man had followed him. He saw a black SUV and a white SUV, and gunshots rang out down the residential street. Peralta reached for his Smith & Wesson .40 caliber pistol and Federal .40 caliber ammunition and shot at the SUVs. Peralta, injured by gunfire, crawled from his vehicle to the steps of a nearby home while the SUVs left the area.
Law enforcement officers arrived to investigate the shooting and approached Peralta who was still at the steps of a nearby home. He required medical treatment and was hospitalized. During a search of Peralta’s bullet-riddled vehicle, police found a pistol with a live round and a magazine with additional ammunition.
Peralta has five prior convictions within the state of Alaska for crimes including robbery, vehicle theft, felon in possession of a firearm, and failure to stop at the direction of a police officer. As someone previously convicted of a felony offense, Peralta was prohibited from possessing firearms or ammunition.
As part of his 2005 robbery conviction, Peralta was involved in a Dimond Center mall shooting that led to the death of another individual. Specifically, in efforts to avoid police contact after the shooting, Peralta hid out in a home in Wasilla for days. After law enforcement officers found the hideout, Peralta and eight other people fled the home and packed into an SUV. Law enforcement officers persuaded the driver to stop the vehicle. As the driver opened the driver’s side door, Peralta pushed the driver out of the car and jumped into the driver’s seat. Peralta led law enforcement on a 90-mile-per-hour chase for 21 miles. After law enforcement officers deployed spike strips, Peralta drove the SUV until the tires shredded from the rims and finally stopped. Alaska State Troopers found Peralta in the driver’s seat and six additional passengers inside, including one infant.
As a result of Peralta’s most recent federal conviction, he faces a maximum penalty of up to 10 years in federal prison and a $250,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Anchorage Police Department (APD), the Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF), and the Federal Bureau of Investigation (FBI) conducted the investigation, with assistance from the Alaska Scientific Crime Detection Laboratory, leading to the successful prosecution of this case. This case is being prosecuted by Assistant U.S. Attorneys Karen Vandergaw and Allison O’Leary.
Five Green Bay Residents Sentenced to Prison for Conspiracy to Distribute Methamphetamine and Gun PossessionRead the Press Release
United States Attorney Matthew D. Krueger has announced that the following individuals (all of Green Bay) recently were sentenced by the Honorable Chief Judge William C. Griesbach following their guilty pleas to the charge of conspiracy to distribute 50 grams or more of methamphetamine:
Name
Age
Sentence
Konkapot Betz
26
12 years’ prison, followed by 5 years of supervised release
John Otto
36
10 years’ prison, followed by 5 years of supervised release
Alex Pociopa
27
64 months’ prison, followed by 8 years of supervised release
Cole Rittenhouse
25
10 years’ prison, followed by 5 years of supervised release
Mariah Becker
26
5 years’ prison, followed by 5 years of supervised release
The sentences for Betz and Otto also were based in part on their possession of firearms. According to plea agreements and other court documents, on November 10, 2018, Ashwaubenon Public Safety responded to an apartment to serve arrest warrants on Pociopa and Becker. Both fled into the apartment. When law enforcement made entry, Rittenhouse and Betz were found hiding in a bedroom in the apartment. A search of the bedroom revealed two handguns, $1,178 in U.S. currency, two digital scales, and a baggie containing 426 gabapentin pills. Elsewhere in the apartment, law enforcement found a total of 60 grams of methamphetamine.
The Brown County Drug Task Force reviewed calls and text messages found on Betz’s phone. Those messages confirmed that Betz sold methamphetamine and heroin to Pociopa, Becker, Rittenhouse, and others. The messages also identified John Otto as Betz’s supplier.
This case was investigated by the Brown County Drug Task Force and Ashwaubenon Public Safety. The case was prosecuted by Assistant United States Attorney William Roach.
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Federal inmate Gets 18 More Years for Bogus Involuntary Bankruptcy Petitions Filed Against Warden, Prison OfficerRead the Press Release
The prison sentence for one inmate at the U.S. Penitentiary in Marion, Illinois, just got a lot longer. Kurt F. Johnson, 56, who was due to be released in 2028, was sentenced earlier today to serve an additional 216 months behind bars for filing fictitious, involuntary bankruptcy petitions against federal prison officials. Johnson was convicted of the charges after a three-day jury trial in Benton, Illinois, last year.
The evidence at trial established that, in January 2018, with the assistance of persons outside the prison, Johnson succeeded in filing false involuntary bankruptcy petitions against the prison warden and an officer at the prison. The bogus petitions alleged that each victim was indebted to
Johnson in the amount of $20 billion, owing to a judgment Johnson claimed to have obtained from the
International Court of Justice (also known as the World Court). As part of the scheme, Johnson purportedly canceled $1 billion of the supposed debt and then filed forms with the Internal Revenue
Service showing the canceled debt as unreported income for his victims.The mere filing of the fictitious claims resulted in both victims receiving solicitation letters from credit counseling services and loan companies based upon their supposed bankruptcy. Once the fraud was discovered, the United States quickly moved to seal the proceedings to prevent further damage to the victims’ reputations.
At trial, the United States presented evidence that Johnson has a history and pattern of harassing judges, court personnel, and Bureau of Prisons employees through the filing of fictitious claims.
Johnson eschewed appointed counsel and represented himself at the trial, testifying in his own defense that he genuinely believed the World Court had awarded him a default judgment for
$20 billion on account of his placement in the prison’s Communications Management Unit. The jury deliberated for approximately 40 minutes before returning guilty verdicts on all four counts.“Kurt Johnson broke the law trying to harm those who enforce it,” U.S. Attorney Steven
D. Weinhoeft said. “His sentence sends an unmistakable message to all criminals who would lash out against the men and women who work within the justice system: you will be prosecuted to the fullest extent of the law.”
Johnson’s sentence also includes a three-year term of supervised release.Johnson won’t begin serving his 18-year sentence until he finishes serving the last decade of a
300-month sentence he previously received for an unrelated fraud conviction in the Northern
District of California. His underlying crime involved a nationwide debt elimination scheme that raked in over $6 million.“I am grateful to U.S. Attorney Weinhoeft and our law enforcement partners who serve on the
Southern District of Illinois Bankruptcy Fraud Working Group for their strong commitment to combating fraud and abuse in bankruptcy cases, as evidenced by this prosecution,” stated Nancy J.
Gargula, U.S. Trustee for Southern and Central Illinois and Indiana (Region 10). The U.S. Trustee
Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Indiana, and Peoria, Illinois.The case was investigated by the FBI, with substantial assistance from the Federal Bureau of
Prisons. Assistant U.S. Attorneys Michael J. Quinley and William E. Coonan prosecuted the case.
Federal Jury Convicts Two for Multiple Violent CrimesRead the Press Release
McALLEN, Texas – Two men face up to life in prison following their convictions of drug crimes, carjacking, robbery and firearms offenses, announced U.S. Attorney Ryan K. Patrick. The McAllen jury deliberated for five hours before convicting Mexican citizen Marin Macrin Cerda aka Filtro, 33, and Jose Miguel Montemayor aka aEl Mickey, 29, of Mission, late Friday. Sept. 6, 2019, following a seven-day trial.
Both were convicted of conspiracy to possess with intent to distribute more than five kilograms of cocaine, conspiracy to possess a firearm in furtherance of a drug trafficking offense and a crime of violence, two counts of carjacking, four counts of Hobbs Act robberies, two counts of brandishing a firearm in furtherance of a crime of violence and/or a drug trafficking offense and three counts of discharging a firearm in furtherance of a crime of violence and/or a drug trafficking offense. Cerda was also convicted of conspiracy to possess with intent to distribute more than 100 kilograms of marijuana, an additional count of carjacking, an additional count of Hobbs Act robbery, two additional counts of brandishing a firearm in furtherance of a crime of violence or drug trafficking offense and one additional count of discharging a firearm in furtherance of a drug trafficking offense or crime of violence in relation to events he participated in without Montemayor.
The investigation began after discovering a local rip crew was responsible for multiple carjackings and home invasions in Hidalgo County in order to steal controlled substances or drug proceeds.
Testimony revealed Cerda and other crew members utilized law enforcement officials to further their drug trafficking activities. Two of those included former Donna Independent School District police Officer Juan F. Mata, 40, of Donna, and former Hidalgo County Court at Law No. 6 bailiff Oscar De La Cruz, 53, of Pharr. Jurors heard Mata conducted fraudulent traffic stops in order to allow members of the organization to steal cocaine hidden in load vehicles. De La Cruz produced fictitious court paperwork or queried sensitive law enforcement and judicial databases the organization would provide to sources of supply in order to retain and steal controlled substances in their possession.
During trial, the jury heard about multiple crimes involving Cerda, Montemayor or both between 2016-2017.
Three of those crimes were carjackings in McAllen and Pharr involving both men in an attempt to steal cocaine. In the second and third instances, rip crew members discharged firearms at the vehicles in order to obtain the controlled substances.
Testimony further revealed Cerda and Montemayor were involved in an attempted robbery which resulted in a shoot-out in a McAllen neighborhood. Another crime involved a home invasion, during which the criminals entered the wrong residence seeking drugs and terrorizing a family, including a female who was eight months pregnant.
Cerda and Montemayor also served as scouts for a drug transaction involving more than 20 kilograms of cocaine Feb. 1, 2017, in McAllen.
Jurors heard that rip crew continued their activities when they also attempted to rob multiple kilograms of cocaine from a vehicle traveling through Mission and McAllen Feb. 27, 2017. Cerda and Montemayor discharged firearms at the targeted load vehicle in an attempt to steal the cocaine. Testimony revealed a bullet struck an occupant of the vehicle and required significant medical attention.
Cerda was further involved in the carjacking of a tractor trailer in rural Mission July 7, 2016, and a car chase and shootout Jan. 6, 2017. In the first instance, the rip crew threatened a family, including several juveniles, in order to steal a tractor trailer believed to conceal drug proceeds. During the car chase incident, the crew discharged firearms and rammed their vehicles into a vehicle before it ultimately crashed.
Jurors also heard testimony relating to a home invasion conducted in Mission April 3, 2017, when rip crew members, including Cerda, entered the residence of a suspected drug trafficker armed with firearms to steal more than $100,000 in drug proceeds.
The jury also heard that casings recovered from three of the crimes were fired from firearms recovered from Cerda’s vehicle.
The defense attempted to convince the jury that althought the crimes had been committed, co-conspirators fabricated Cerda’s and Montemayor’s involvement. They did not believe those claims and convicted both men as charged.
U.S. District Judge Micaela Alvarez presided over the trial and sent sentencing for Dec. 19, 2019. At that time, both men face up to 10 years for conspiracy to possess a firearm, a maximum of 15 years for each of the carjackings and 20 years on each of the robbery counts, a minimum of five and up to 40 years for conspiracy to possess with intent to distribute marijuana as well a minimum of 10 years and up to life in federal prison for the cocaine conspiracy.
In addition, they face a minimum of seven years and up to life for each of the brandishing firearms convictions and a 10-year minimum up to life for each of the discharging a firearms counts. The firearms sentences must be served consecutively to each other and to the other sentences imposed.
All in all, Montemayor faces a minimum of 54 years, while Cerda faces a minimum of 78 years to life in prison. Both face a maximum lifetime term of imprisonment.
They have been and will remain in custody pending their sentencing hearing.
To date, more than 25 co-conspirators have been convicted in connection with the investigation. Mata and De La Cruz also pleaded guilty and have been sentenced to 130 and 60 months, respectively.
The FBI Safe Streets Task Force and Drug Enforcement Administration conducted the investigation with assistance from Border Patrol, U.S. Marshals Gulf Coast Regional Fugitive Task Force, Immigration and Custom’s Enforcement’s Homeland Security Investigations, Texas Department of Public Safety’s Highway Patrol and Regional Crime Laboratories, Hidalgo County Sheriff’s Office, Hidalgo County District Attorney’s Office and Police Departments in McAllen, Mission, Pharr and San Juan. Assistant U.S. Attorneys Roberto Lopez Jr. and K. Alejandra Andrade are prosecuting the case.
East Glacier area man charged with involuntary manslaughter, assault in Glacier National ParkRead the Press Release
Great Falls – A man accused of causing the death of one person and of injuring another while driving in Glacier National Park in June was charged in U.S. District Court today, U.S. Attorney Kurt Alme said.
Leo James Hagan, 19, of East Glacier Park Village, pleaded not guilty to an indictment charging him with involuntary manslaughter and assault resulting in serious bodily injury.
The indictment is merely an accusation, and Hagan is presumed innocent until proven guilty.
If convicted, Hagan faces a maximum eight years in prison, a $250,000 fine and three years of supervised release on the manslaughter count, and a maximum 10 years in prison, a $250,000 fine and three years of supervised release on the assault count.
U.S. District Judge Brian M. Morris presided. Hagan was released pending further proceedings. A trial was set for Nov. 4, 2019.
The indictment alleges that Hagan was driving recklessly on June 11, 2019, near Lower Two Medicine Lake in Glacier National Park, when his actions caused the death of one person and seriously injured a second person.
Assistant U.S. Attorney Kalah Paisley is prosecuting the case, which was investigated by the National Park Service, Montana Highway Patrol, Blackfeet Law Enforcement Services and the Glacier County Sheriff’s Office.
Pacer case reference. 19-71.
If the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Department of Justice Reminds the Public to be Aware of Fraud When Disaster Strikes and Report it to the National Center for Disaster Fraud - (866) 720-5721Read the Press Release
RALEIGH – The Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region, which opened opportunities for criminals to exploit people during vulnerable times. The NCDF, a national coordinating agency within the Department’s Criminal Division, operates a call center at Louisiana State University in Baton Rouge and serves as a centralized clearinghouse for disaster fraud complaints and information relating to both natural and man-made disasters. The NCDF seeks to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for victims of such fraud. More than 20 federal, state, and local agencies participate in the NCDF, which allows them to forward complaints to the appropriate agency for investigation.
“In the aftermath of the devastation wrought by Hurricane Dorian the affected communities and citizens of Eastern North Carolina should be on guard against disaster fraud schemes,” said Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina. “As FEMA and other federal, state, and local relief agencies work tirelessly to support those who have suffered losses as the result of this natural disaster, we can be certain that criminals will target those impacted and attempt to profit from the suffering of others. The Department of Justice is committed to detecting and stopping this type of fraud. Through the National Center for Disaster Fraud, and in conjunction with our law enforcement partners, we are working to aggressively prosecute the offenders.”
While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need. Examples of illegal activity being reported to the NCDF and law enforcement include:
- FEMA fraud;
- Identity theft;
- Contractor fraud;
- Charity fraud; and,
- Impersonation of government officials.
The NCDF reminds the public to be aware of and report any instances of alleged fraudulent activity related to relief operations and funding for victims. Members of the public are reminded to apply a critical eye and do their due diligence before trusting anyone purporting to be working on behalf of disaster victims and before giving contributions to anyone soliciting donations on behalf of disaster victims. The public is also reminded to be extremely cautious before providing personal identifying or financial information to anyone, especially those who may contact you after a natural disaster.
Unfortunately, criminals can exploit disasters, such as Hurricane Dorian, for their own gain by sending fraudulent communications through email or social media and by creating phony websites designed to solicit contributions. Tips should be reported to the NCDF at (866) 720-5721. The line is staffed 24 hours a day, seven days a week. Additionally, e-mails can be sent to [email protected], and information can be faxed to (225) 334-4707.
Learn more about the NCDF at www.justice.gov/disaster-fraud and watch a public service announcement from United States Attorney Higdon here. Within the United States Attorney’s Office for the Eastern District of North Carolina, Deputy Criminal Chief Felice Corpening serves as the Disaster Fraud Coordinator. Working with the NCDF and our local, state, and federal law enforcement partners, Deputy Criminal Chief Corpening oversees the federal prosecution and investigation of disaster fraud matters impacting Eastern North Carolina. Violations of North Carolina state disaster fraud laws are handled by the North Carolina Department of Justice’s (NCDOJ) Consumer Protection Division. The NCDOJ Consumer Protection Division may be contacted at 1-877-5-NO-SCAM (1-877-566-7226) or by visiting www.ncdoj.gov/complaint.
Tips for the public on how to avoid being victimized by fraud are available at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
Charleston Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
CHARLESTON, W.Va. – A Charleston man pled guilty to possession with intent to distribute over 50 grams of methamphetamine, announced United States Attorney Mike Stuart. Robert Thomas (also known as Zombie), 33, pled guilty to possession with intent to distribute methamphetamine.
“It’s hard to imagine 989 grams of meth, but that’s what we have in this case. Firearms too,” said United States Attorney Mike Stuart. “I am working with every possible partner and hitting hard at the drug dealers. They need to go. They are not welcome in West Virginia. We’re prosecuting gun-toting meth dealers like Thomas to get them off of our streets. And we’re trying to get them locked up for as long as possible.”
Thomas admitted that his home was searched, pursuant to a search warrant, on January 17, 2017. During the search of his residence, detectives seized what proved to be 989 grams of methamphetamine. Detectives also seized four firearms. Thomas possessed the firearms to protect himself and his drugs and he intended to distribute the methamphetamine to other drug dealers and addicts.
Thomas faces 15 years in prison when he is sentenced on January 13, 2020.
The Special Enforcement Unit (SEU) of the Charleston Police Department, the Bureau of Alcohol, Tobacco and Firearms (ATF) and the Drug Enforcement Administration (DEA) conducted the investigation. Assistant United States Attorney Ryan A. Saunders is handling the prosecution. Senior United States District Judge David A. Faber presided over the hearing.
This case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Capital Caring Pays $3.1 Million to Resolve Medicare Billing ClaimsRead the Press Release
ALEXANDRIA, Va. – Capital Caring, located in Falls Church, has agreed to pay $3.1 million to settle allegations that it caused the government to overpay the organization as a result of billings it submitted to the Medicare Program for hospice services.
Capital Caring provides hospice and palliative care services for patients in the Washington, D.C. metropolitan area. The overpayments were the result of claims Capital Caring submitted to Medicare for hospice services for patients who the government alleged either did not meet the hospice eligibility guidelines for the Medicare Program, Title XVIII of the Social Security Act, or for whom the hospice clinical record information maintained by Capital Caring was insufficient to support Medicare hospice coverage.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia, the FBI, and the Department of Health and Human Services Office of Inspector General.
The matter was investigated by Assistant U.S. Attorneys Monika Moore and Ilene Albala. The civil claims settled are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Caddo Parish mental health counseling firm owner and supervisor indicted for billing nearly $8 million for services not provided, paying kickbacksRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that two Northwest Louisiana residents who owned and ran the Positive Change Counseling Agency LLC were indicted for improperly billing Medicaid for almost $8 million, in addition to paying kickbacks in violation of the law.
The owner and operator of Positive Change, Marty Johnson, 57, of Shreveport, and the company’s supervisor and business manager, Keesha Dinkins, 42, of Bossier City, Louisiana, were charged with one count of conspiracy to commit health care fraud and wire fraud, 47 counts of health care fraud and four counts of wire fraud. Johnson also faces one count of paying a kickback.
According to the indictment, Positive Change billed Medicaid $7,992,347 for psychiatric therapy, transportation, and other related mental health services from January 2014 to December 2018 that were never provided. In order to execute the scheme, Johnson and his employees recruited clients to receive mental health and related services. Johnson then paid some of these clients kickbacks in exchange for enrolling in certain programs. Johnson also obtained Medicaid identification numbers from potential clients and their family members and, without the potential clients’ authorization, billed Medicaid for services that were not rendered.
In billing Medicaid, Johnson and Dinkins: (i) created false documents showing that Positive Change provided services that were not rendered; (ii) falsely listed employees with graduate and advanced educational degrees as service providers in order to trigger a higher rate of payment from Medicaid; and (iii) used false, fabricated and exaggerated mental health diagnoses in order to obtain additional payments from Medicaid.
If convicted, the defendants face up to 20 years in prison for each count of conspiracy, health care fraud and wire fraud. Johnson also faces 10 years in prison for illegal kickbacks. Both defendants also faces up to five years of supervised release, a $250,000 fine, forfeiture and restitution. Arraignment is scheduled for September 10, 2019.
The U.S. Department of Health and Human Services, Office of Inspector General; the FBI; and the Louisiana Attorney General’s Office, Medicaid Fraud Control Unit, conducted the investigation. Assistant U.S. Attorney Earl M. Campbell and Cadesby Cooper are prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
CBL/BFL Member Pleads Guilty for His Role in Racketeering 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 Dajon Nettles, a/k/a Gucc, 25, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to racketeering conspiracy. The charge carries a maximum penalty of 20 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that between 2010 and August 28, 2018, the defendant was an associate with the CBL/BFL Gang, which stands for, among other things, “Cash Been Long” and “Brothers for Life.” He conspired with several other associates to sell drugs, commit robbery, retaliate against witnesses, and commit assault. CBL/BFL operated within a specifically defined geographic area on the East side of Buffalo. Gang members and associates engaged in drug trafficking to generate income and violent crimes to maintain control over their territory. As part of his plea, defendant Nettles admitted to participating in the following acts:
• On June 4, 2013, in the Towne Gardens neighborhood, the defendant shot approximately three times at a vehicle containing members of a suspected rival gang causing damage to the vehicle; • On June 8, 2013, Nettles provided a revolver to a co-conspirator and member of the CBL/BFL enterprise. On that date, the co-conspirator was engaged in a dispute with another individual at 418 South Park Avenue in Buffalo, and during the dispute, the co-conspirator pointed the revolver at an individual’s head and pulled the trigger. The firearm did not discharge. The co-conspirator was stopped by Buffalo Police later that day, and the police recovered a .32 caliber revolver loaded with five rounds of ammunition; • On September 21, 2015, the defendant appeared in a video on social media holding a rifle while a co-defendant held ammunition. Nettles’ possession of firearms as depicted on video, and other firearms he maintained access to as a member of the enterprise, occurred during times when the defendant and others were involved selling crack cocaine and other drugs as members of the enterprise; • On August 7, 2017, Nettles sold crack cocaine to an individual working with investigators; • On August 29, 2018, the defendant was on Spring Street and Mary B. Talbert Boulevard when he was stopped by members of the FBI and the Buffalo Police Department who had a federal warrant for his arrest. Nettles had one bag of crack cocaine in his underwear and a scale with cocaine residue in his pants pocket; and
• On two occasions between 2014 and 2017, defendant sold crack cocaine to an individual working with investigators.A total of 13 CBL/BFL members and associates have been charged in this case. Nettles is the fourth to be convicted. The fact that a defendant has been charged with a crime is merely an accusation, and the defendants are presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the New York State Police, under the direction of Major Edward Kennedy; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; the Cheektowaga Police Department, under the direction of Chief David Zack; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Lackawanna Police Department, under the direction of Chief James Michel; the U.S. Marshals Service, under the direction of Marshal Charles Salina; and the Erie Crime Analysis Center. Additional assistance was provided by the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn.
Sentencing is scheduled for January 24, 2020, before Judge Vilardo.
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6 September 2019
Youngstown physician indicted in federal court on sex trafficking charges involving minors as young as 12 years oldRead the Press Release
A Youngstown physician was indicted in federal court on sex trafficking charges involving minors as young as 12 years old.
Albert Aiad-Toss, 52, was indicted on four counts of sex trafficking of a minor and one count of production of child pornography.
Aiad-Toss is allegedly to have used force, threats of force, fraud or coercion to cause three minor victims to engage in commercial sex acts at various points in June 2019. The victims ranged in age from 12 to 14 years old, according to the indictment.
Aiad-Toss is also alleged to have induced a 15-year-old girl to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct. This took place on June 29, 2019, according to the indictment.
“This defendant is accused of sexually assaulting children as young as 12 years old,” said U.S. Attorney Justin Herdman. “Those who prey upon children and other vulnerable victims will be held accountable for their actions.”
“The abuse of a child is despicable and incomprehensible. Individuals such as Dr. Toss who allegedly choose to engage in sex acts with minors and sharing sexually explicit photos of children will face a court of law,” said FBI Special Agent Eric B. Smith. “Law enforcement will continue our unceasing efforts to protect our most precious resource, our children."
“The charges brought against the defendant, Albert Aiad-Toss, are the product of the cooperation between Ashland law enforcement agencies, my office and the federal authorities,” said Ashland County Prosecutor Christopher Tunnell. “This case is prime an example of what happens when all the relevant criminal justice agencies act with the singular focus of keeping our children safe from predatory exploitation.”
If convicted, the 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.
This case was investigated by the Federal Bureau of Investigation, the Ashland Police Department and the Mansfield Police Department. It is being prosecuted by Assistant U.S. Attorney Ranya Elzein and First Assistant U.S. Attorney Bridget M. Brennan with the assistance of Ashland County Prosecutor Christopher Tunnell.
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.
Whiting Man Sentenced to Prison and Ordered to Pay Restitution to the City of HammondRead the Press Release
HAMMOND- The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II and the Assistant Attorney General for the Environment and Natural Resources Division, Jeffrey Bossart Clark, announce that Kenneth Morrison, age 69, of Whiting, Indiana, was sentenced before United States District Court Judge Philip P. Simon on September 5, 2019. Morrison was sentenced to 24 months imprisonment, 2 years supervised release, and ordered to pay over $54,000 in restitution to the City of Hammond.
Morrison was found guilty of interstate transportation of stolen property. According to documents and testimony in this case, Morrison was convicted of stealing the Monon Bridge, located in Hammond, Indiana, and transporting the stolen metal parts across state lines, which he sold those metal parts for his personal benefit. The former bridge had spanned the Grand Calumet River. Morrison’s sentence was enhanced due to the eligibility of the bridge for the National Register of Historic Places.
The case was the result of an investigation by the U.S. Environmental Protection Agency-Criminal Investigation Division, U.S. Environmental Protection Agency-Office of Inspector General, Environmental and the U.S Coast Guard Criminal Investigative Service with the assistance of the Indiana Department of Natural Resources and the Indiana Department of Environmental Management. This case was prosecuted by Trial Attorney Richard J. Powers, U.S. Department of Justice, Environmental Crimes Section and Assistant United States Attorney Toi Denise Houston.
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United States Attorney Mike Stuart Issues Statement Regarding Allegations of Sexual Assault at the Beckley Veterans Affairs Medical CenterRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart issued the following statement regarding recent allegations of sexual assault at the Beckley Veterans Affairs Medical Center (VAMC):
“My office has been made aware of the sexual assault allegations at the Beckley VAMC. My office takes these allegations very seriously and is working closely with federal, state and local law enforcement agencies to ensure this matter is investigated thoroughly and quickly.”
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Two Rochester Men Plead Guilty for Their Roles in Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Pablo Rentas-Torres, 35, and Jesus Fernandez, 25, both of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to possess with intent to distribute, and to distribute, quantities of fentanyl, cocaine and crack cocaine. The charge carries a maximum penalty of 20 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorney Matthew T. McGrath, who is handling the case, stated that the defendants were members of a drug trafficking organization led by co-defendant Jose Casado. The organization distributed large quantities of fentanyl, cocaine and crack cocaine out of drug houses located on Clifford Avenue and Treyer Street in Rochester between December 2017 and May 15, 2019.
Jose Casado would obtain bulk quantities of fentanyl, heroin and crack cocaine, then he and other members of the conspiracy would “bag-up” or package the various substances to be sold to individual drug users. Drug users would contact Casado directly via cellular phone to order quantities of drugs and Casado would then routinely direct other members of the conspiracy, including the defendants, to obtain a particular quantity of drugs from the Casado organization’s drug stash, and deliver it to the customer at a pre-arranged location. The drug runners then met with the customer and provided the drugs in exchange for cash. Casado or another member of the organization would collect the proceeds of the drugs sales from the drug runners periodically throughout the day. Between December 2017 and April of 2019, investigators conducted 13 undercover purchases from the organization.
On March 14, 2019, a search warrant was executed at the Clifford Avenue drug house. Members of the Drug Enforcement Administration and Rochester Police Department recovered 18 baggies of fentanyl, nine baggies of powder cocaine, nine baggies of crack cocaine, numerous materials used to package controlled substances, 1,800 rounds of .22 caliber ammunition, and 50 shotgun shells. On May 15, 2019, a second search warrant was executed at the Clifford Avenue residence where investigators recovered a .22 caliber pistol.
Rentas-Torres and Fernandez were arrested along with five other defendants, including Jose Casado. A total of three have been convicted. Charges remain pending against Jose Casado, Whitney Casado, Ricardo Casado and Gamalliett Rosario-Martinez. 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.
The pleas are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division and the Rochester Police Department, under the direction of Chief La’Ron Singletary.
Rentas-Torres and Fernandez are scheduled to be sentenced on December 13, 2019, at 11:00 a.m. and 11:30 a.m. respectively, both before Judge Geraci.
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Troy McIlwain Sentenced to 48 Months for Possession with Intent to Distribute Crack Cocaine and Violations of Supervised Release ConditionsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Troy McIlwain, 31, of St. Albans, Vermont, was sentenced today for possession with intent to distribute cocaine base and violations of conditions of supervised release. United States District Judge Christina Reiss sentenced McIlwain to 24 months based on the drug conviction, and 24 months based on the supervised release violation, for a total sentence of 48 months. Judge Reiss also ordered that McIlwain serve a three-year period of supervised release upon his release from prison.
According to court records, McIlwain’s criminal history includes a 2013 federal conviction in Vermont for possession of firearms as a convicted felon. He was placed on supervised release on April 13, 2018, after his release from a term of imprisonment in connection with a previous violation of release conditions. The court issued a warrant for his arrest in June 2018 due to his non-compliance with release conditions. On September 9, 2018, the Burlington Police Department encountered McIlwain as he was driving in Burlington and arrested him on the warrant. During processing at the Chittenden Regional Correctional Facility later that night, corrections officers recovered from McIlwain’s pocket a plastic bag containing 36 baggies of cocaine base. As a result, McIlwain was federally charged with possession with intent to distribute cocaine base.
The government and McIlwain entered into a plea agreement in which McIlwain admitted to the cocaine possession and the violations of supervised release conditions. The court accepted the parties’ agreement providing for a 48-month sentence and sentenced him accordingly.
The government was represented by First Assistant U.S. Attorney Kevin J. Doyle. McIlwain was represented by Paul S. Volk, Esq.
Texas Man Sentenced to 33 Years in Prison for Child KidnappingRead the Press Release
A Texas man was sentenced today to 33 years in prison, followed by five years of supervised release, for child kidnapping.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S Attorney Erin Nealy Cox of the Northern District of Texas and Special Agent in Charge Matthew J. DeSarno of the FBI’s Dallas Field Office made the announcement.
Rene Gloria, 57, of Muleshoe, Texas, was sentenced by U.S. District Judge James Wesley Hendrix of the Northern District of Texas. According to admissions that he made in connection with his guilty plea, on Dec. 24, 2018, Gloria lured two minor children into his car with the promise of money. Once they were in his car, Gloria threatened to kill them and refused to let them out of his car. After several hours, both minors eventually escaped from Gloria’s car and were recovered by law enforcement.
The case was investigated by the FBI with the assistance of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Muleshoe Police Department, the Bailey County Sheriff’s Office, the Plainview Police Department and the Hale County Sheriff’s Office. Trial Attorney Kyle P. Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Russell Lorfing of the Northern District of Texas prosecuted the case.
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 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.justice.gov/psc.
Stock Promoter Who Caused Tens of Millions in Losses Pleads Guilty to Securities Fraud ChargesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Dino Paolucci, 41, of Mississauga, Ontario, entered a plea of guilty to four counts of securities fraud before United States District Judge Eduardo C. Robreno.
The charges resulted from the defendant’s participation in a scheme to manipulate the price and trading volume of the stocks of LiveWire Ergogenics (“LVVV”), YaFarm Technologies (“YFRM”), Resource Ventures (“REVI”), and Medical Cannabis Payment Solutions (“REFG”). This type of scheme is commonly referred to as a “pump-and-dump.”
During the course of the scheme, Paolucci, a stock promoter, worked with others to artificially increase the price and volume of the stocks through the use of false and misleading press releases, email blasts, radio advertisements and tweets, often in coordination with planned trading by other participants in the scheme. The misleading promotion in concert with planned trading was designed to control the price and volume of the stock. In order to hide their scheme from investors and regulators, Paolucci and his fellow schemers used offshore corporations and brokerage accounts, intermediaries, and even fake names, causing tens of millions of dollars of losses to investors while gaining millions in profits for themselves.
“Stock fraud is a danger to free markets and to individual investors, and our securities laws must be vigorously enforced to protect the public,” said U.S. Attorney McSwain. “Those who defraud investors and harm our securities markets will be tracked down and brought to justice, just as Paolucci was here.”
The case was investigated by the Federal Bureau of Investigations, with assistance from the Securities and Exchange Commission. It is being prosecuted by Assistant United States Attorneys Patrick Murray and Judy Smith.
South Carolina Man Pleads Guilt to Production and Receipt of Child PornographyRead the Press Release
PIKEVILLE, Ky. - A South Carolina man admitted in federal court Friday that he knowingly produced and received child pornography.
Jonathan Edward Manigault, 34, pleaded guilty to one count of production of child pornography and one count of knowingly receiving child pornography, before U.S. District Judge Karen K. Caldwell.
Manigault admitted he directed Christina B. Mitchell, of Pike County, to take photographs of a 3-year-old victim, engaging in sexually explicit conduct. Manigault provided Mitchell with specific, detailed instructions on what types of explicit photographs to produce and provide. According to the plea agreement, Mitchell transmitted the photographs of the minor to Manigault using the Facebook Messenger application. After receipt, Manigualt had Mitchell agree to produce additional images of underage victims.
Manigault and Mitchell were indicted on October 24, 2018.
Mitchell pleaded guilty to two counts of producing child pornography on August 26, 2019. According to her plea agreement, Mitchell produced sexually explicit images of a 3-year-old and 8-year-old victims.
“Protecting children from this unconscionable conduct is of the utmost importance to all law enforcement,” said United States Attorney Robert M. Duncan, Jr. “The defendant’s guilty plea today, and his co-defendant’s guilty plea in August, ensure that they will not have the opportunity to victimize other innocent children. I commend the efforts of law enforcement for their work in removing these dangerous individuals from our streets.”
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Special Agent in Charge, FBI Louisville Field Division, jointly announced the guilty plea.
The investigation was conducted by the FBI. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Jenna E. Reed.
Mitchell’s and Manigault’s sentencing hearings are scheduled for December 16, 2019, in Pikeville. Mitchell faces up to 60 years in prison and Manigault faces up to 50 years in prison. Both defendants face a maximum fine of $250,000. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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Six Defendants Indicted for Methamphetamine Conspiracy ChargesRead the Press Release
Knoxville, Tenn. – On September 4, 2019 a federal grand jury in Knoxville also returned a single count indictment against the following individuals alleging a conspiracy to possess with the intent to distribute 50 grams or more of methamphetamine:
Alim Turner, 21, of Knoxville, Tennessee
Ushery Michael Stewart, 20, of Knoxville, Tennessee
Ronald J Turner, 23, of Knoxville, Tennessee
Kadaris Traysean Gilmore, 21, of Knoxville, Tennessee
Christopher Andrew Hounschell, 31, of Knoxville, Tennessee
Michael Scott Stewart, 40, of Knoxville, Tennessee
The trial is set for November 12, 2019, in front of United States District Judge Thomas A. Varlan. If convicted of the methamphetamine distribution conspiracy charge, each defendant faces a minimum mandatory term of at least 10 years and up to life in prison, at least 5 years of supervised release, a fine of up to $10,000,000, criminal forfeiture, and a $100 special assessment.
FBI Agents and Knoxville Police Officers are looking for Alim Turner. Turner goes by the street name “Baby Popoff.” Turner stands 5’ 9” and weighs 170 pounds. He is known to carry firearms. Anyone with information on his whereabouts is asked to contact the FBI’s Knoxville Field Office at (865) 544-0751 or the Knoxville Police Department at (865) 215-7212.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
This case was investigated by the FBI Safe Streets and High Intensity Drug Trafficking Area (HIDTA) Task Forces. These task forces are comprised of police officers from the Knoxville and Kingston Police Departments, Sheriff’s Deputies from the Knox, Blount, Sevier, Roane and Loudoun County Sheriff’s Offices and prosecutors from the District Attorney General’s Offices and the United States Attorney’s Office for the Eastern District of Tennessee. These task forces are resource multipliers for crime-fighting efforts in East Tennessee, leveraging law enforcement resources to fight the most violent criminals in the area. Assistant United States Attorney Kevin Quencer will represent the United States.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Puyallup Bar Owner Pleads Guilty to Illegal Drug DistributionRead the Press Release
The former owner of Johnny’s Bar and Grill in Puyallup, Washington, pleaded guilty today in U.S. District Court in Tacoma to possession of methamphetamine with intent to distribute, announced U.S. Attorney Brian T. Moran. JOHN CHOE admits in his plea agreement that, in January 2018, he obtained methamphetamine, cocaine, and heroin from his sources and began selling them to customers at his bar. Between January 2019 and April 2019, CHOE sold cocaine to a person working with law enforcement on four different occasions. The Washington State Liquor and Cannabis Board suspended the bar’s liquor license on June 19, 2019. Judge Benjamin H. Settle scheduled sentencing for December 16, 2019.
According to the facts admitted in the plea agreement, the Drug Enforcement Administration (DEA) and state and local law enforcement began investigating CHOE after receiving information about drug sales at the bar. After the confidential informant and an undercover DEA agent purchased a total of 45 grams of cocaine on four different occasions, law enforcement served a court-authorized search warrant for the bar and for CHOE’s vehicle. Agents found methamphetamine, heroin, synthetic cannabinoids, and Percocet pills in a metal box at the bar. When CHOE was arrested, he was carrying cocaine. CHOE admits all the drugs were for distribution.
Possession of methamphetamine with intent to distribute is punishable by up to 40 years in prison and a $5,000,000 fine. Under some circumstances, the charge carries a mandatory minimum five-year prison term. The ultimate sentence will be determined by the Court based on the advisory Sentencing Guidelines and other statutory factors.
The case was investigated by the DEA’s Tacoma Narcotics Enforcement Task Force (TNET), in collaboration with the Puyallup Police Department. The case is being prosecuted by Assistant United States Attorney Seungjae Lee.
Pueblo Company Owner Pleads Guilty to Falsifying Records to Obstruct a Federal InvestigationRead the Press Release
DENVER – United States Attorney Jason R. Dunn announces that Pueblo business owner Mary Catherine Grasmick pled guilty to falsifying records with the intent to obstruct a federal investigation. The plea was accepted by U.S. District Court Judge Daniel D. Domenico yesterday in United States District Court in Denver. Sentencing is scheduled for December 17, 2019.
In addition to the guilty plea in the criminal case, Ms. Grasmick and her company MASS Service and Supply, LLC also agreed to pay a combined $500,000 to settle civil allegations that they made false statements to the Small Business Administration in connection with government contracts awarded to MASS under the SBA’s Historically Underutilized Business Zone program (“HUBZone”).
The HUBZone program provides federal contracting assistance to qualified small businesses located in historically underutilized business zones. One of the requirements to qualify is that at least 35 percent of a business’s employees must reside in a HUBZone. If a business qualifies, it’s eligible to bid on contracts specifically set aside for HUBZone businesses and gets a price preference when bidding on federal contracts subject to open competition. In order to remain in the HUBZone program, a small business must apply for recertification by the Small Business Administration every three years.
As part of the civil settlement, MASS and Ms. Grasmick acknowledged that between 2009 and 2012, MASS engaged in a scheme to deceive the SBA with the intent to influence the SBA’s effort to determine if MASS was eligible to continue participating in the HUBZone program. Ms. Grasmick directed the scheme, created false documents, and allowed others to create false documents. MASS falsely claimed that some of its employees resided in HUBZones when in fact those employees lived elsewhere in non-HUBZone areas. During that same period, MASS applied for and was awarded a HUBZone set aside contract and a federal contract on which MASS benefited from the HUBZone program’s pricing preference.
The Small Business Administration decertified MASS from the HUBZone program in 2012. The government then conducted an investigation into MASS’s previous representations to the Small Business Association. During the course of that investigation, a special agent of the Defense Criminal Investigative Service requested that MASS provide information relating to MASS’s employees and their HUBZone residency status. According to the facts contained in the plea agreement, Ms. Grasmick caused spreadsheets with false information to be created and sent to the special agent. Ms. Grasmick knew that information in the spreadsheets was false and that the spreadsheets contained false entries, but she intentionally submitted the spreadsheets to the special agent with the intent to impede and obstruct the government’s investigation.
“Obstructing a federal investigation is a crime,” said United States Attorney Jason R. Dunn. “Getting to the truth matters in every case. We are grateful that our prosecutors and excellent law enforcement partners work tirelessly to get to the truth in every investigation -- especially those that concern how our taxpayer dollars are spent.”
“Individuals that provide false information to gain access to SBA’s HUBZone Program harm eligible small businesses and undermine economic development in HUBZone areas,” said Inspector General Hannibal ‘Mike’ Ware. “OIG will continue to aggressively pursue individuals that undermine Americans’ confidence in federal contracting programs designed to assist small businesses. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication to pursuing justice.”
"Today's outcome is a clear example of the continued dedication by the U.S. Army's Criminal Investigation Command's Major Procurement Fraud Unit (MPFU) and our law enforcement partners who work diligently every single day to root out fraud and criminal deception," said Frank Robey, Director of MPFU. "Our reach and capabilities are far and wide."
"This case demonstrates the commitment of the Defense Criminal Investigative Service (DCIS), along with our law enforcement partners, to aggressively pursue those who attempt defraud the United States Government and the Department of Defense," said Michael Mentavlos, Special Agent-in-Charge of the DCIS Southwest Field Office. "This type of criminal activity undermines the integrity of the Small Business Program and demonstrates the commitment of DCIS and our investigative partners in holding those accountable for their actions."
The United States Attorney’s office thanks the Defense Criminal Investigative Service, the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit, the Air Force Office of Special Investigations, the Department of Defense Office of Inspector General, the U.S. General Services Administration Office of the Inspector General, the SBA Office of Inspector General, and the Defense Contract Audit Agency for their diligent work on this investigation.
Assistant United States Attorney Bryan Fields is prosecuting the criminal case. Assistant United States Attorney Jasand Mock handled the civil investigation.
Case No. 19-cr-00308
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Prohibited Possessor Sentenced to Prison for Transporting and Selling Firearms and AmmunitionRead the Press Release
TUCSON, Ariz. – On August 27, 2019, Joshua Pratchard, 38, of San Diego, California, was sentenced by U.S. Senior District Judge Cindy K. Jorgenson to seventy-five months imprisonment, to be followed by a term of five years of probation and two years of supervised release, to be served concurrently. Pratchard previously pleaded guilty to multiple counts of Possession of a Firearm and Ammunition by Convicted Felon and Transferring a Firearm to an Out-of State Resident.
Between January, 2018 and June 1, 2018, Pratchard, a prohibited possessor from California, traveled to southern Arizona, where he sold two firearms and approximately five hundred rounds of ammunition to another individual. The firearms Pratchard sold included a short-barreled rifle and a silencer. When arrested on June 1, 2018, agents searched Pratchard’s vehicle and found additional items including a short-barreled rifle, an AR 15-type rifle, a silencer, a .45 caliber pistol and hundreds of rounds of ammunition. Pratchard was convicted of possessing eight firearms, six of which were in violation of the National Firearms Act, and approximately 1,464 rounds of ammunition.
The investigation in this case was conducted by the Federal Bureau of Investigation, with assistance by the U.S. Border Patrol and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution was handled by Beverly K. Anderson, Assistant U.S. Attorney, District of Arizona, Tucson.
Prison staff admits to striking an inmateRead the Press Release
CLARKSBURG, WEST VIRGINIA – Tony Moore, a cook supervisor at USP Hazelton in Bruceton Mills, West Virginia, has admitted to assaulting an inmate, United States Attorney Bill Powell announced.
Moore, age 39, pled guilty to one count of “Assault by Striking.” Moore admitted to striking an inmate while on duty without just cause or reason in November 2017.Moore faces up to 12 months incarceration and a fine of up to $1,000. 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 Andrew R. Cogar is prosecuting the case on behalf of the government. The Department of Justice Office of Inspector General investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Pennsylvania Man Sentenced for Attempted Travel to Philippines to Have Sex with MinorsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that defendant Jack Russell Bristol, 62, of Troy, Pennsylvania, was sentenced to thirty years’ incarceration and ten years’ supervised release by United States District Court Judge Gerald J. Pappert for child exploitation offenses.
The defendant was arrested by the Department of Homeland Security Investigations as part of an online investigation involving the sexual exploitation and trafficking of children via live-streaming webcams. For more than a year, the defendant paid for live-streamed sex shows that featured children in the Philippines. The defendant sought out young girls, some as young as 8 years of age, and paid their adult handlers to have the girls strip on camera, masturbate, and engage in sex acts with other children and with adults. The investigation confirmed that Bristol spent approximately $600 every month for these live-streamed shows, and over the last few months before his arrest, had repeated contact with two sisters who were just 12 and 14 years old.
As part of his abuse of these girls, the defendant made arrangements to travel to the Philippines, where he had paid to stay with a host family that had five girls, all under the age of 18. Bristol’s plan was to have sex with the two sisters he had been communicating with online, but he was intercepted by federal agents in Philadelphia as he attempted to board a plane to the Philippines.
Bristol confessed to agents on the day of his arrest, and later pleaded guilty to all three charges in the Indictment, for which he was sentenced today: two counts of using the Internet to entice a minor to engage in sexual conduct, and one count of attempted foreign travel to engage in illicit sexual activity with a minor.
“Child predators often go to extreme lengths to get what they want, and this case is a prime example of that – this defendant was ready to travel literally to the other side of the globe,” said U.S. Attorney McSwain. “We stand ready with our federal and local partners to identify and prosecute those who would prey upon minor children.”
“Protecting children from predators is a top priority for Homeland Security Investigations,” said Marlon V. Miller, Special Agent in Charge of HSI Philadelphia. “Today’s sentencing demonstrates that we will not tolerate the sexual abuse of children anywhere in the world. HSI will vigorously investigate anyone who attempts to travel overseas to exploit and take advantage of children.”
This case is part of Project Safe Childhood (PSC), a program bringing together all levels of law enforcement and the communities they serve to reduce the sexual exploitation and abuse of children. The case was investigated by the Department of Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Michelle Rotella.
Pawnshop Robber Sentenced to 25 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington today sentenced Terry Alonzo Wilson (53, Tampa) to 25 years in federal prison for planning and carrying out an armed robbery of a Tampa pawnshop. The court also ordered Wilson to forfeit $63,543, which includes the $61,943 in jewelry and $1,600 in cash that Wilson and his co-defendant, Jeremy Williams (35, Miami), had taken from the pawnshop during the robbery.
On June 18, 2019, a jury found Wilson guilty of conspiracy to commit robbery, robbery, brandishing a firearm during a robbery, and possessing a firearm as a convicted felon.
According to court documents and evidence presented during the trial and the sentencing hearing, Wilson recruited Williams to rob the Value Pawn & Jewelry, located at 5401 North 40th Street in Tampa. During the robbery, on September 14, 2018, Wilson pointed a loaded pistol at two employees and a customer who were inside the store and threated to kill them. Wilson also brought zip ties to the robbery and instructed Williams to tie up the employees and the customer. Wilson forced the store manager to disconnect the store’s security video recording system, which Wilson took with him when he left the store.
In total, Wilson and Williams took $63,543 worth of jewelry and cash from the pawnshop. At the time of the robbery, Wilson had recently completed a 20-year sentence for robbing another Tampa pawnshop at gunpoint. He was released from prison less than four months before committing the armed robbery of the Value Pawn & Jewelry.
Williams pleaded guilty to his role in the case and testified during Wilson’s trial. On July 16, 2018, Williams was sentenced to nearly 11 years in prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Taylor G. Stout.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Owner and Chief Executive Officer of Telemedicine Company Pleads Guilty to $424 Million Conspiracy to Defraud Medicare and Receive Illegal Kickbacks in Exchange for Orders of Durable Medical EquipmentRead the Press Release
The owner and chief executive officer (CEO) of a telemedicine company pleaded guilty today for his role in one of the largest health care fraud schemes ever investigated by the FBI and the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and prosecuted by the Department of Justice, which resulted in charges in April 2019 against 24 defendants.
Lester Stockett, 52, of Medellin, Colombia, pleaded guilty today to one count of conspiracy to defraud the United States and pay and receive health care kickbacks, and one count of conspiracy to commit money laundering. Stockett was the owner of Video Doctor USA (Video Doctor) and Telemed Health Group LLC (AffordADoc) (collectively, the Video Doctor Network), and was the CEO of AffordADoc. In connection with his plea agreement, Stockett agreed to pay $200 million in restitution to the United States, as well as forfeit assets and property traceable to proceeds of the conspiracy to defraud the United States and conspiracy to commit money laundering. Stockett’s sentencing is set for Dec. 16 before U.S. District Judge Madeline Cox Arleo of the District of New Jersey, who accepted his plea today.
“This CEO and his co-conspirators lined their own pockets with hundreds of millions of dollars by exploiting telemedicine technology meant to help elderly and disabled patients in need of health care,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s plea shows that the Department of Justice remains laser-focused on uprooting corporate health care fraud schemes, especially those built on the backs of the most vulnerable members of our community.”
“Health care fraud results in billions of dollars in losses and affects a multitude of people across American communities,” said FBI Assistant Director Robert Johnson. “We take violations of these laws extremely seriously. The FBI will use our full investigative resources and continue to collaborate with HHS-OIG, IRS-CI, and other partners to stop this type of illegal activity.”
“The extent of Mr. Stockett's fraud and money laundering, literally, knew no bounds,” said Special Agent in Charge Gregory W. Ehrie of the FBI’s Newark Field Office. “From the U.S. to Latin America, the Philippines, and the Dominican Republic, the FBI followed the trail of ill-gotten gains back to Stockett and his conspirators. They stole precious federal funds earmarked to assist the elderly. His admission today should resonate with anyone who is committing fraud against the U.S. government – the FBI will find you and your criminal efforts will not pay off.”
“This global scheme that took advantage of hundreds of thousands of vulnerable individuals was fueled by unbounded greed without regard for the rules of law,” said Deputy Inspector General for Investigations Gary L. Cantrell of the U.S. Department of Health and Human Services Office of Inspector General. “We will continue to work with our law enforcement partners to bring to justice those that prey on unsuspecting beneficiaries and steal from taxpayer-funded health care programs.”
“Bribes and illegal kickbacks will not be tolerated as part of our nation’s healthcare system,” said Special Agent in Charge John R. Tafur of IRS Criminal Investigation, Newark Field Office. “Medical equipment should only be ordered when medically necessarily, not when criminals wish to line their own pockets. Today’s guilty plea should let the American public know that IRS Criminal Investigation and our law enforcement partners will continue to root out individuals like Mr. Stockett who look to illegally profit off of our health care system.”
In connection with his guilty plea, Stockett admitted that he and others agreed to solicit and receive illegal kickbacks and bribes from patient recruiters, pharmacies, brace suppliers and others in exchange for arranging for doctors to order medically unnecessary orthotic braces (braces) for beneficiaries of Medicare and other insurance carriers. The beneficiaries were contacted through an international telemarketing network that lured hundreds of thousands of elderly and/or disabled patients into a criminal scheme that crossed borders, involving call centers in the Philippines and throughout Latin America.
Stockett admitted that, in order to obtain the orders that were transmitted in exchange for kickbacks and bribes, he and other executives and employees of the Video Doctor Network paid illegal kickbacks and bribes to health care providers to order medically unnecessary braces for Medicare beneficiaries. Many of these orders were written after only a short telephone call between the health care provider and the beneficiary, with whom the health care provider had no prior doctor-patient relationship.
Stockett and others transferred the brace orders to co-conspirator brace suppliers to support more than $424 million in false and fraudulent claims to Medicare that were submitted by brace suppliers, he admitted. Medicare paid these brace suppliers in excess of $200 million for these claims.
Stockett admitted that he and other executives and employees of the Video Doctor Network were aware that it was a violation of the Anti-Kickback Statute for the Video Doctor Network or its owners or investors to receive money, directly or indirectly, from patient recruiters, purported marketers or marketing organizations, brace suppliers or pharmacies. Stockett and his co-conspirators concealed the illegal kickbacks and bribes by causing them to be paid indirectly through nominee companies and bank accounts, opened by Stockett and others in nominee names both in the United States and in foreign countries, including in the Dominican Republic, Stockett admitted. Stockett further admitted that he and others hid the existence of the foreign companies and bank accounts by making, or causing to be made, false statements to financial institutions and falsely reporting to the IRS and others that they and others had no influence over foreign bank accounts.
In addition, Stockett admitted that he and other owners and executives of the Video Doctor Network schemed to defraud investors and others by making false and fraudulent representations that the Video Doctor Network was a legitimate telemedicine enterprise that made revenue of “$10 million per year” and “20% profit” from payments by beneficiaries who enrolled in a membership program and paid for the telemedicine consultations. These statements were false because revenue was obtained by the Video Doctor Network through the receipt of illegal kickbacks and bribes, Stockett admitted.
With regard to money laundering, Stockett admitted that beginning about March 2016 and continuing to about April 2019, he and other owners and executives of the Video Doctor Network conspired to engage in domestic and international money laundering. Specifically, Stockett and his coconspirators transferred in excess of approximately $10 million in illegal kickback payments that they received, from a bank account of PCS CC LLC, a corporation located in the United States, to the bank account of Droneza Consulting, a corporation located in the Dominican Republic. Stockett and others then transferred more than $9.8 million from a bank account of Droneza Consulting to bank accounts of AffordADoc in the United States, in order to conceal that the Video Doctor Network was receiving kickbacks from brace suppliers in exchange for arranging for doctors to write orders that the Video Doctor Network provided to the brace suppliers, Stockett admitted.
Stockett was charged along with Creaghan Harry, 51, of Highland Beach, Florida, and Elliot Loewenstern, 56, of Boca Raton, Florida, in an indictment charging one count of conspiracy to defraud the United States and pay and receive health care kickbacks and four counts of health care kickbacks. Stockett and Harry were separately charged with one count of conspiracy to commit money laundering. The case against Harry and Loewenstern is pending before Judge Arleo. Trial has not been set.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI, HHS-OIG and IRS-CI. Acting Assistant Chief Jacob Foster and Trial Attorney Darren Halverson of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Any doctors or medical professionals who have been involved with alleged fraudulent telemedicine and DME marketing schemes – including Video Doctor USA and AffordADoc – should call to report this conduct to the FBI hotline at 1-800-CALL-FBI.
Additional documents related to the investigation and prior indictments are available here: https://www.justice.gov/opa/documents-and-resources-april-9-2019-press-release-health-care-fraud.
Orlando Man Sentenced to 40 Years for Sexually Exploiting ChildrenRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Carlos A. Rodriguez Fernandez (48, Orlando) to 40 years in federal prison for sexually exploiting a 14-year-old girl and for possessing child pornography. The court also ordered Rodriguez Fernandez to forfeit the electronic devices that he had used to commit the offenses.
A federal jury had found Rodriguez Fernandez guilty on June 14, 2019.
According to court documents and evidence presented during the trial and sentencing hearing, Rodriguez Fernandez hid a webcam in the victim’s bathroom and recorded sexually explicit videos of the child. He also used an online file-sharing program to download and view child pornography. The Florida Department of Law Enforcement Cybercrimes Task Force identified Rodriguez Fernandez after he had shared child pornography through a file-sharing program.
During the execution of a search warrant at Rodriguez Fernandez’s residence, agents recovered several electronic devices containing 160 images and 6 videos depicting the sexual abuse and exploitation of young children and teens. The agents also located a webcam that Rodriguez Fernandez had concealed behind an electrical outlet plate across from the toilet in the 14-year-old’s bathroom. Rodriguez Fernandez ran the camera’s USB cord through the bathroom wall to his office, where he had attached it to his computer. Rodriguez Fernandez recorded and saved the illicit videos of the child on his computer.
This case was investigated by the FDLE Cybercrimes Task Force, whose members include FDLE, Homeland Security Investigations, the Lake County Sheriff’s Office, the Clermont Police Department, the Kissimmee Police Department and the Altamonte Springs Police Department. It was prosecuted by Assistant United States Attorney Karen L. Gable.
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 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 locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
North Carolina Bloods Gang Members Plead Guilty to Racketeering Conspiracy Involving MurdersRead the Press Release
Two North Carolina members of the United Blood Nation (UBN or Bloods) street gang have pleaded guilty to Racketeer Influenced and Corrupt Organizations (RICO) conspiracy involving multiple murders.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina and Special Agent in Charge John A. Strong of the FBI’s Charlotte Field Office, made the announcement.
Tyquan Ramont Powell, aka Savage, 24, of Charlotte, North Carolina, and Lamonte Kentrell Lloyd, aka Murda Mo and Moo, 25, of Scotland Neck, North Carolina, both admitted their membership in the UBN and participation in the racketeering enterprise through acts involving murder and robbery.
According to court documents, Powell and Lloyd committed two murders and three attempted murders over the course of less than a month. Powell and Lloyd committed the first murder in Scotland Neck, North Carolina, in January 2016 by shooting into a car with three occupants because they believed that one of the occupants was cooperating with law enforcement and intended to testify in a criminal case against a close associate of the defendants. Bullets struck all three occupants and the intended target of the shooting was killed. The Defendants then fled to, among other places, Charlotte, North Carolina, where they sought and received refuge and resources from UBN members and associates while attempting to evade arrest.
Also according to court documents, Powell and Lloyd committed murder in Gastonia, North Carolina, in February 2016. The Defendants attempted to rob four victims using handguns. When the victims resisted the defendants’ robbery attempt, Powell fired his firearm and killed one of the victims. Also in February 2016, according to court documents, Powell and Lloyd attempted to rob another victim. Lloyd shot the victim in the back of the head, but the victim was effectively treated for his injuries at the hospital and lived.
According to court documents and evidence presented at a May 2018 trial against the godfathers of the UBN, the UBN is a violent criminal street gang operating throughout the east coast of the United States since it was founded as a prison gang in 1993. UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks. Examples include: a three-circle pattern, usually burned onto the upper arm, known as a “dog paw”; the acronym “M.O.B.,” which stands for “Member of Bloods”; the words “damu,” or “eastside”; the number five; the five-pointed star and the five-pointed crown. UBN members have distinct hand signs and written codes, which are used to identify other members and rival gang members.
Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders. Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93. UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies and wire fraud, among other forms of illegal racketeering activity.
In May 2017, 83 members of the UBN were indicted in the Western District of North Carolina for crimes including RICO conspiracy. Seventy-eight defendants have now either pleaded guilty or been convicted at trial due to this investigation, and 68 have been sentenced. A jury convicted three top leaders of the UBN of racketeering conspiracy in May 2018, and one defendant was convicted of racketeering conspiracy and wire fraud conspiracy at trial in July 2019. Seventy-four defendants have pleaded guilty in this investigation, including four who participated in the racketeering conspiracy by, among other crimes, committing a murder in July 2016 in Chapel Hill, North Carolina.
The investigation was conducted by the FBI; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Division of Adult Correction and Juvenile Justice; the North Carolina Department of Motor Vehicles; Scotland Neck Police Department; the North Carolina State Bureau of Investigation; the Halifax County Sheriff’s Office; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the IRS Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command and the New York Department of Corrections and Community Supervision, Office of Special Investigations.
Trial Attorney Beth Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Matt Warren and Christopher Hess for the Western District of North Carolina are prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
North Carolina Bloods Gang Members Plead Guilty to Racketeering Conspiracy Involving MurdersRead the Press Release
CHARLOTTE, N.C. – Two North Carolina members of the United Blood Nation (UBN or Bloods) street gang have pleaded guilty to Racketeer Influenced and Corrupt Organizations (RICO) conspiracy involving multiple murders.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina and Special Agent in Charge John A. Strong of the FBI’ Charlotte Field Office, made the announcement.
Tyquan Ramont Powell, aka Savage, 24, of Charlotte, North Carolina, and Lamonte Kentrell Lloyd, aka Murda Mo and Moo, 25, of Scotland Neck, North Carolina, both admitted their membership in the UBN and participation in the racketeering enterprise through acts involving murder and robbery.
According to court documents, Powell and Lloyd committed two murders and three attempted murders over the course of less than a month. Powell and Lloyd committed the first murder in Scotland Neck, North Carolina, in January 2016 by shooting into a car with three occupants because they believed that one of the occupants was cooperating with law enforcement and intended to testify in a criminal case against a close associate of the defendants. Bullets struck all three occupants and the intended target of the shooting was killed. The Defendants then fled to, among other places, Charlotte, North Carolina, where they sought and received refuge and resources from UBN members and associates while attempting to evade arrest.
Also according to court documents, Powell and Lloyd committed murder in Gastonia, North Carolina, in February 2016. The Defendants attempted to rob four victims using handguns. When the victims resisted the defendants’ robbery attempt, Powell fired his firearm and killed one of the victims. Also in February 2016, according to court documents, Powell and Lloyd attempted to rob another victim. Lloyd shot the victim in the back of the head, but the victim was effectively treated for his injuries at the hospital and lived.
According to court documents and evidence presented at a May 2018 trial against the godfathers of the UBN, the UBN is a violent criminal street gang operating throughout the east coast of the United States since it was founded as a prison gang in 1993. UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks. Examples include: a three-circle pattern, usually burned onto the upper arm, known as a “dog paw”; the acronym “M.O.B.,” which stands for “Member of Bloods”; the words “damu,” or “eastside”; the number five; the five-pointed star and the five-pointed crown. UBN members have distinct hand signs and written codes, which are used to identify other members and rival gang members.
Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders. Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93. UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies and wire fraud, among other forms of illegal racketeering activity.
In May 2017, 83 members of the UBN were indicted in the Western District of North Carolina for crimes including RICO conspiracy. Seventy-eight defendants have now either pleaded guilty or been convicted at trial due to this investigation, and 68 have been sentenced. A jury convicted three top leaders of the UBN of racketeering conspiracy in May 2018, and one defendant was convicted of racketeering conspiracy and wire fraud conspiracy at trial in July 2019. Seventy-four defendants have pleaded guilty in this investigation, including four who participated in the racketeering conspiracy by, among other crimes, committing a murder in July 2016 in Chapel Hill, North Carolina.
The investigation was conducted by the FBI; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Division of Adult Correction and Juvenile Justice; the North Carolina Department of Motor Vehicles; Scotland Neck Police Department; the North Carolina State Bureau of Investigation; the Halifax County Sheriff’s Office; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the IRS Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command and the New York Department of Corrections and Community Supervision, Office of Special Investigations.
Trial Attorney Beth Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Matt Warren and Christopher Hess for the Western District of North Carolina are prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Newton Man Sentenced for Business Loan SchemeRead the Press Release
BOSTON – A Newton man was sentenced yesterday in federal court in Boston for illegally using the identity of another individual to apply for two business loans.
Igor Mosieev, 59, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 30 months in prison and five years of supervised release. In addition, Mosieev was ordered to pay restitution in the amount of $91,418.
In May 2019, Mosieev pleaded guilty to two counts of bank fraud and one count of aggravated identity theft. In June 2018, Mosieev was arrested and charged with co-defendant Alexander Grinis, 47, of Jamaica Plain.
Grinis was the manager of Eastern Bank in Auburndale where his responsibilities included assisting customers with opening and closing accounts and applying for loans and lines of credit. In approximately February 2015, Grinis assisted Mosieev in opening a checking and savings account at Eastern Bank with the license and Social Security card of another individual, without the knowledge or consent of that person. Later that year, Grinis assisted Mosieev in adding the individual to a business account in the name of TFC Enterprises, LLC. Thereafter, Mosieev forged the individual’s name on applications for two purported business loans. On each loan application, Grinis falsely certified that he had complied with all bank procedures and, as a result, the loans were approved. The proceeds of the two loans were subsequently distributed to the business checking account and Mosieev forged the individual’s name on checks and withdrew money from the account to pay for his own personal expenses. In addition, Mosieev, with Grinis’ assistance, caused proceeds from the business checking account to be wired to Russia, Canada, and elsewhere overseas using the individual’s name. Both loans defaulted and were never paid back to Eastern Bank, resulting in a loss of over $90,000.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of Lelling’s Organized Crime and Gang Unit prosecuted the case.
Newton Accountant Pleads Guilty to Wire Fraud and Filing False Tax ReturnRead the Press Release
BOSTON – A Newton man pleaded guilty yesterday in federal court in Boston to charges of wire fraud and filing a false tax return.
Jeffrey Kellem, 49, pleaded guilty to four counts of wire fraud and one count of filing a false tax return. Kellem was charged by Information in August 2019. Sentencing has been scheduled for Dec. 5, 2019.
Kellem used his position as an accountant for an elderly client, and the estate of a deceased client, to steal more than approximately $1.6 million for his own use. Kellem transferred his clients’ funds, without their authorization, to bank accounts he opened and controlled. He also failed to report more than $500,000 in income from the funds he took on his tax returns. As a result, in 2017, Kellem avoided paying taxes totaling more than $150,000.
The charge of wire fraud carries a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and forfeiture. The charge of filing a false tax return carries a sentence of up to three years in prison, one year of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities and Financial Fraud Unit is prosecuting the case.
New Hampshire Drywall Business Owner Indicted for Tax FraudRead the Press Release
A federal grand jury sitting in Concord, New Hampshire, returned an indictment charging Walter Rodriguez with three counts of filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Scott W. Murray for the District of New Hampshire.
According to the indictment, from at least 2011 through 2013, Rodriguez owned and operated a drywall business in Manchester, New Hampshire, under the name Walter Rodriguez Drywall and Finish. Rodriguez’s drywall business allegedly performed work for large construction companies located in New Hampshire, Massachusetts, New York and other states. The indictment charges that the construction companies typically issued Forms 1099 to Rodriguez’s business for payments made to Rodriguez, or to his drywall business, during each of the relevant years. In addition to these payments reported to the Internal Revenue Service, the construction companies allegedly paid Rodriguez by checks issued in the names of fictitious or fraudulent identities. Rodriguez is alleged to have cashed or caused to have cashed these checks at commercial check cashers in the New Hampshire and Massachusetts area. The indictment charges that Rodriguez filed false tax returns that underreported the total gross receipts of his business.
If convicted, Rodriguez face a maximum penalty of three years in prison for each false tax return count. He also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. A defendant is presumed innocent unless and until proven guilty.
The case was investigated by special agents of the Internal Revenue Service-Criminal Investigation. Tax Division Trial Attorney Brittney Campbell and Assistant United States Attorney Robert Kinsella are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Montgomery County Man Indicted for Bank Fraud in Scheme to Convert Collateral on Loans from the Farm Service AgencyRead the Press Release
LEXINGTON, Ky. – A Montgomery County man was indicted Thursday on multiple counts of bank fraud in a scheme to avoid repaying more than $150,000 in loans from the Farm Service Agency (FSA), a division of the United States Department of Agriculture.
A federal grand jury in Lexington returned an 11-count indictment charging Steven Ray Williams, 57, with selling off secured loan collateral, including cattle and farm equipment, in the names of other individuals and then forging endorsement signatures on checks, all in order to avoid turning over the proceeds to the Farm Service Agency.
Williams was also charged with aggravated identity theft for using the means of identity of another person, without permission, in order to facilitate bank fraud.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Bethanne M. Dinkins, Acting Special Agent in Charge, Southeast Region, United States Department of Agriculture Office of Inspector General, jointly announced the indictment. The investigation preceding the indictment was conducted by the U.S. Department of Agriculture, Office of Inspector General. The indictment was presented to the grand jury by Assistant U.S. Attorney William Moynahan.
A date for Williams to appear in federal court has not yet been scheduled. He faces up to 30 years in prison and a fine of $1,000,000 on each bank fraud count. For the aggravated identity theft, he faces a prison sentence of two years. However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Minnesota Man Sentenced for Attempted Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that an Eden, Minnesota, man convicted of Attempted Receipt of Child Pornography was sentenced on August 30, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Jimmy Custodio, age 41, was sentenced to 7 1/2 years in federal prison, followed by 5 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Custodio was one of nine men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2017 Sturgis Motorcycle Rally, targeting persons willing to pay to have sex with underage girls or boys obtained through the Internet. The conviction stemmed from Custodio communicating with someone he believed to be a minor for the purpose of engaging in sexual acts, and requesting that the minor send pornographic images to Custodio.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Custodio was immediately remanded to the custody of the U.S. Marshals Service.
Methamphetamine Trafficker in Hattiesburg Sentenced to over 21 Years in Federal PrisonRead the Press Release
Hattiesburg, Miss. – Isaiah Longino, 38, of Hattiesburg, was sentenced yesterday by Senior U.S. District Judge Keith Starrett to serve 262 months in federal prison, followed by 5 years of supervised release, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad Byerley with the Drug Enforcement Administration (DEA). Longino was also ordered to pay a $5,000 fine.
An investigation by the DEA revealed that Longino was a distributor of methamphetamine in the Forrest County area. On January 25, 2018, in Hattiesburg, Longino sold 445 grams of methamphetamine to a DEA confidential source for $5,500. Longino pled guilty on April 12, 2019, to possession with intent to distribute methamphetamine.
The case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Shundral H. Cole.
McLaughlin Man Charged with Assaulting a Federal Officer and Assault with a Dangerous WeaponRead the Press Release
United States Attorney Ron Parsons announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer, and Assault with a Dangerous Weapon.
Amos Talks, age 24, was indicted on August 13, 2019. He appeared before U.S. Magistrate Judge William D. Gerdes on September 3, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 21, 2018, Talks did forcibly assault, resist, oppose, impede, intimidate, and interfere with a federal law enforcement officer, and that such conduct involved the use of a dangerous weapon.
The charges are merely accusations and Talks is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Kirsten Jasper is prosecuting the case.
Talks was released on bond pending trial. A trial date has not been set.
Man Sentenced for Looting Thrift Savings Plan AccountRead the Press Release
ALEXANDRIA, Va. – A Maryland man was sentenced today to four years in prison for stealing the identity of an Alexandria resident and withdrawing funds from the victim’s retirement savings account.
According to court documents, Alpha Kanu, 29, of Laurel, illegally obtained the victim’s name, date of birth, address, and Social Security number. He then used that information to access the victim’s online account with the Virginia Department of Motor Vehicles to obtain the victim’s driver’s license number, as well as to change the victim’s mailing address. Kanu learned that the victim, a 28-year federal employee presently serving as a civilian employee of the U.S. Army, had a substantial amount of retirement savings in a Thrift Savings Plan (TSP) account. Kanu, impersonating the victim, took out a $45,000 loan against the TSP account, the proceeds of which he deposited into a bank account in the victim’s name. Kanu subsequently withdrew those ill-gotten funds and used them on personal purchases.
The money stolen from the victim’s account was reimbursed to the victim as an administrative expense of the TSP, a cost borne by all TSP participants.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Richard Delmar, Acting Inspector General for the U.S. Department of Treasury, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Special Assistant U.S. Attorney Michael L. Jones and Assistant U.S. Attorney Alexander E. Blanchard prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-147.
Malicious Cyber Activity and Online Scam Warning in Wake of Hurricane DorianRead the Press Release
PROVIDENCE – United States Attorney Aaron L. Weisman today urged everyone, particularly online users, to remain vigilant for malicious cyber activity and would-be scammers who may target Hurricane Dorian disaster victims and potential donors.
Fraudulent emails commonly appear after major natural disasters and often contain links or attachments that direct users to malicious websites. Users should exercise caution in handling any email with a hurricane related subject line, attachment, or hyperlink. In addition, users should be wary of social media pleas, texts, or door-to-door solicitations relating to severe weather events.
U.S. Attorney Aaron Weisman commented, “We have all seen the heartbreaking pictures and heard the heart wrenching details of the devastation hundreds of thousands of people are experiencing in the wake of Hurricane Dorian. Sadly, there are always heartless, greedy individuals waiting to pounce on the kindness of others and victimize them.”
U.S. Attorney’s across the country are encouraging Americans to review the following resources for more information and to take preventative measures to avoid becoming victims of malicious activity.
• Staying Alert to Disaster-related Scams
• Before Giving to a Charity
• Staying Safe on Social Networking Sites
• Avoiding Social Engineering and Phishing Attacks
If you believe you have been a victim of cybercrime, file a complaint with the Federal Bureau of Investigation Internet Crime Complaint Center at www.ic3.gov
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Local Plaintiff’s Attorney Sentenced to 3 Years in Prison for Corruptly Obstructing an IRS AuditRead the Press Release
SACRAMENTO, Calif. — Today, U.S. District Judge William B. Shubb sentenced Stephen J. Dougan, 57, formerly of Granite Bay, now residing in Utah, to three years in prison and one year of supervised release for corruptly endeavoring to impede the due administration of the Internal Revenue Laws, U.S. Attorney McGregor W. Scott announced.
According to court documents and evidence presented at trial, during an Internal Revenue Service audit of his 2006 and 2007 tax returns, Dougan made false statements, including falsely representing that he was redacting checks to protect client confidentiality when in fact, he also redacted his own name from checks he wrote to himself; withheld documents from the IRS; and provided false and misleading documents to the IRS that substantially underrepresented his income in 2006 and 2007. He also made false statements and provided false and misleading documents to the IRS in order to substantiate various business expenses he claimed on Schedule C of his 2006 tax return, including submitting a false advertising invoice and falsely claiming that his personal divorce attorney was his assistant or paralegal.
U.S. Attorney Scott stated: “This defendant is a lawyer who refused to obey the law. As determined by the trial judge and jury, he did not make an impulsive error in judgment, but rather his conduct was long-term, complex, and deliberate. This sentence reflects the discredit he brought to the legal profession.”
“The defendant used his legal knowledge and his lies to organize a complex scheme to hide over $1.4 million of income,” said Kareem Carter, Special Agent in Charge IRS Criminal Investigation. “When the IRS audited his tax returns, he concealed more than $650,000 in back taxes in an effort to obstruct the audit. Today’s sentencing sends a clear message that those involved in these types of schemes will be held accountable for their crimes.”
This case was the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorneys Michael M. Beckwith, Chi Soo Kim, Matthew D. Segal, Matthew M. Yelovich, and Amy S. Hitchcock prosecuted the case.
Lima Man Charged with Sex Trafficking Minor GirlRead the Press Release
COLUMBUS, Ohio – A registered sex offender has been charged with federal crimes related to sex trafficking a 14-year-old girl.
A federal grand jury has charged Nicholas Salvadore Cochran, 28, of Lima, Ohio, with sex trafficking a minor, sexually exploiting a minor, distributing and possessing child pornography and committing a sex offense while registered as a sex offender in an indictment filed here today.
Cochran was arrested on Aug. 9 as part of Operation Independence Day – a nationwide FBI-led operation to identify and arrest sex traffickers and recover child victims.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Ohio Attorney General Dave Yost, Celina Police Chief Thomas Wale, Allen County Sheriff Matthew B. Treglia, Westerville Police Chief Charles Chandler and other members of the FBI’s Child Exploitation Task Force announced the charges.
According to the indictment, last month Cochran caused a minor female victim to engage in commercial sex acts with several men in exchange for money.
Court documents detail that Cochran met the minor victim on Snapchat approximately five months prior.
Phone numbers linked to Cochran were allegedly posted on the website skipthegames.com in the female escorts section. Cochran’s advertisement stated, in part: “…do not attempt to low ball me I can skype and I have duo for verification and i will send one nude No small talk time is money and I don’t like mine wasted…”
Investigation of the advertisements revealed that between July 9 and July 14, Cochran allegedly posted approximately 25 ads for the Lima-Findlay, Dayton and Columbus areas. He allegedly posted ads for sex with the child victim daily, and those ads contained nude photographs of the minor.
Cochran had been convicted of two counts of sexual battery and one count of attempted sexual battery in Henry County in 2009.
Cochran faces up to life in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI, the Ohio Attorney General’s Bureau of Criminal Investigation (BCI), the Celina and Westerville police departments and the Allen County Sheriff’s Office as well as Assistant United States Attorney Heather A. Hill, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Lexington Woman Indicted for Making Fake Bomb Threats to City’s 911 Emergency Response CenterRead the Press Release
LEXINGTON, Ky. – A Lexington woman was indicted Thursday for making multiple false bomb threats to Lexington’s 911 emergency response center.
A federal grand jury in Lexington returned a 3-count indictment charging 31-year-old Crystal Brotherton with intimidating individuals by making threats involving explosives and the destruction of buildings. The indictment specifically alleges Brotherton called Lexington’s 911 system and told the operator there were bombs at multiple business at an intersection off of New Circle Road. She allegedly demanded the businesses be evacuated in 15 minutes or “everyone will die.” According to the indictment, Brotherton made three calls to 911 around June 20 and 21, 2018, all involving similar threats of death and destruction.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; and Lawrence Weathers, Chief of the Lexington Police Department, jointly announced the indictment. The investigation preceding the indictment was conducted by the Lexington Police Department and the Federal Bureau of Investigation. The indictment was presented to the grand jury by Assistant U.S. Attorney William Moynahan.
A date for Brotherton to appear in federal court has not yet been scheduled. She faces up to 10 years in prison and a fine of $250,000 for each charge. However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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