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2 August 2019
Two Maryland Men Facing Federal Indictment for Their Roles in a Scheme that Allegedly Stole Government Benefits, Including More Than $8 Million in Federal Emergency AssistanceRead the Press Release
Greenbelt, Maryland – A federal grand jury returned an indictment charging John Irogho, age 38, of Upper Marlboro, Maryland, for conspiracy to commit wire fraud, and charging Irogho and Odinaka Ekeocha, age 33, of Laurel, Maryland, for conspiracy to commit money laundering, in connection with a scheme to fraudulently obtain federal benefits. The indictment was returned on July 31, 2019, and unsealed today upon the arrests of the defendants.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Mark I. Tasky of the Department of Homeland Security (DHS) – Office of Inspector General; Special Agent in Charge Michael McGill of the Social Security Administration (SSA) Office of Inspector General; Special Agent in Charge Matthew S. Miller of the U.S. Secret Service – Washington Field Office; and J. Russell George, Treasury Inspector General for Tax Administration (TIGTA).
“While many come forward in the wake of disasters to help selflessly, some use disasters to enrich themselves through theft and fraud,” said U.S. Attorney Robert K. Hur. “The U.S. Attorney’s Office will pursue criminals who steal funds intended to help actual disaster victims.”
“This indictment should serve as notice that the Treasury Inspector General for Tax Administration is committed to investigating illicit manipulations of IRS online systems, and bringing those involved to face justice,” said J. Russell George, Treasury Inspector General for Tax Administration.
Michael McGill, Special Agent in Charge of the Social Security Administration Office of the Inspector General, Philadelphia Field Division said, “I want to thank our law enforcement partners for their efforts to bring these individuals to justice. We will continue to protect the integrity of the Social Security system, and pursue those who violate the public trust by committing fraud against Social Security and those who depend on it across the country.”
During the time period covered by this indictment, the Federal Emergency Management Agency (FEMA) was responsible for providing emergency benefits and compensation for damage to victims who were affected by declared national emergency disasters, such as hurricanes and wildfires. Among other benefits, an individual in an area affected by a national disaster was immediately eligible for “Critical Needs Assistance” (CNA) to purchase life-saving or life sustaining materials. The assistance was paid to the victim in a manner of his/her choosing, including being deposited onto pre-paid debit cards.
According to the two-count indictment, from 2016 through 2018 Irogho and several co-conspirators purchased hundreds of Green Dot debit cards, which co-conspirators then registered with Green Dot using the stolen personal information of identity theft victims from around the country. In 2017, amidst Hurricanes Harvey, Irma, and Maria, and the California wildfires, co-conspirators allegedly applied online with FEMA for CNA using the stolen personal information of additional victims of identity theft. According to the indictment, FEMA paid at least $8 million in amounts of $500 per claim to the Green Dot debit cards purchased by Irogho and his co-conspirators.
In addition to filing false disaster-assistance claims with FEMA, the indictment alleges that co-conspirators also filed false claims online for Social Security benefits, for IRS tax refunds, and for Department of Labor unemployment and disability benefits using the stolen identities of multiple additional individuals, including name, address, Social Security Number (“SSN”), and other personal identifiers.
The indictment alleges that FEMA, and the other federal agencies to whom fraudulent applications for benefits were submitted, deposited the falsely claimed benefits directly onto the Green Dot debit cards. Funds were deposited onto the Green Dot debit cards in the names of multiple stolen identities, and in stolen identities that were different from the identities that had been used to register the cards. After the funds were placed onto the Green Dot debit cards, certain co-conspirators then informed other conspirators, including Irogho, that funds were available on the cards, and provided information to facilitate “cashing out” the funds from the cards. The indictment also alleges that Irogho enlisted Ekeocha and other conspirators to cash out stolen funds from the Green Dot and other pre-paid debit cards, which Irogho, Ekeocha, and other co-conspirators did in exchange for a commission. Irogho, Ekeocha, and their co-conspirators cashed out the cards soon after funds were added by depositing the money into bank accounts, and/or through ATM withdrawals or purchases of money orders.
According to the indictment, Irogho and other co-conspirators took steps to conceal their identities and the conspiracy and scheme to defraud, by enlisting other individuals (including Ekeocha) to make the purchases and withdrawals, utilizing multiple store and bank locations and methods of withdrawal, using multiple bank accounts (including in the names of corporate entities), converting funds into cash rather than placing them into bank accounts, and making money orders payable to other individuals and/or corporate entities which they or their co-conspirators controlled.
The conspirators allegedly used an encrypted messaging application, e-mail and other means to communicate, and used the stolen federal funds to pay rental and housing expenses, to purchase used vehicles, and for other purposes.
If convicted, Irogho faces a maximum sentence of 30 years in federal prison for conspiracy to commit wire fraud. Irogho and Ekeocha each face a maximum sentence of 20 years in federal prison for conspiracy to commit money laundering. At their detention hearings today in U.S. District Court in Greenbelt U.S. Magistrate Judge Thomas M. DiGirolamo ordered that Irogho be detained pending a detention hearing scheduled for Monday, August 5, 2019 at 3:00 p.m. Judge DiGirolamo ordered that Ekeocha be released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
In a related case, Tare Stanley Okirika, age 30, of Laurel, Maryland, pleaded guilty to wire fraud conspiracy on July 19, 2019, admitting that as part of the conspiracy to fraudulently obtain government benefits, he worked with other co-conspirators to cash out Green Dot and other prepaid debit cards. Okirika admitted that he used the stolen federal funds from the scheme to pay his rent and for other purposes. U.S. District Judge George J. Hazel has scheduled sentencing for Okirika on October 22, 2019, at 10:00 a.m.
Members of the public who suspect fraud involving disaster relief efforts, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the Department of Justice’s National Center for Disaster Fraud at http://www.justice.gov/disaster-fraud.
United States Attorney Robert K. Hur commended the DHS OIG, the SSA OIG, the USSS, and TIGTA for their work in this investigation. Mr. Hur thanked Assistant U.S. Attorneys Elizabeth G. Wright, and Kelly O. Hayes, who are prosecuting these cases.
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Three Individuals Charged in Oxycodone Prescription Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, and Vernon Police Chief James Kenny today announced that a federal grand jury in Hartford returned an indictment yesterday charging three individuals with offenses related to the illegal acquisition and distribution of oxycodone obtained through fraudulent prescriptions. JAYSON KEMP, 42, of East Windsor, ORAL WELBORN, 58, of Columbia, South Carolina, and MARIA PIRULLI, 42, of New Haven, were arrested this morning.
As alleged in the indictment, between 2012 and 2014, Kemp obtained blank prescription paper from employees of various Connecticut medical practices, including from Pirulli, who formerly resided in Newington and was employed as an assistant and bookkeeper at a medical practice in Hartford. Kemp kept some of the prescription paper for himself and also sold some of the prescription paper, for thousands of dollars, to other individuals, including Welborn, who formerly resided in Hartford. Kemp, Welborn and another co-conspirator then recruited “runners,” who typically were individuals who received Medicaid and Medicare benefits, to fill fraudulent prescriptions at various pharmacies. Kemp, Welborn and the other coconspirator filled out each prescription with the runner’s identifying information and forged a doctor’s signature on the prescription. The runner then filled the fraudulent prescription at a pharmacy, generally using their Medicaid or Medicare benefits, and provided the pills to Kemp, Welborn and their co-conspirator in exchange for approximately $50 per prescription. Kemp, Welborn and their co-conspirator then sold the pills to individuals suffering from opioid addictions.
It is alleged that Kemp, Welborn and their co-conspirator were responsible for filling at least 150 fraudulent prescriptions for oxycodone, almost all of which were for 150 30-mg oxycodone pills.
The indictment charges Kemp with one count of conspiracy to distribute narcotics, which carries a maximum term of imprisonment of 20 years; one count of conspiracy to commit health care fraud, which carries a maximum term of imprisonment of 10 years; and two counts of health care fraud, which carries a maximum term of imprisonment of 10 years on each count.
Welborn is charged with one count of conspiracy to distribute narcotics and one count of conspiracy to commit health care fraud, and Pirulli is charged with one count of conspiracy to distribute narcotics.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, the U.S. Department of Health and Human Services Office of the Inspector General, and the Vernon Police Department.
This case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Three Dominican Nationals Indicted for Identity TheftRead the Press Release
BOSTON – Three Dominican nationals were indicted yesterday by a federal grand jury in Boston as a result of a federal investigation targeting offenders of document and benefit fraud. The defendants have allegedly used the identities of U.S. citizens from Puerto Rico as their own. All three defendants have been previously arrested on drug charges under the names of the victims whose identities they have stolen.
Edward Obispo Garcia, 38, a Dominican national residing in Roxbury; Jesus Alberto Baez Pimental, 37, a Dominican national residing in Fitchburg; and Juan Jose Heureaux Carmona, 27, a Dominican national residing in Roxbury, were each indicted on charges of aggravated identity theft and false representation of a Social Security number. Heureaux Carmona was also charged with false statements relating to health care matters. The defendants were arrested and charged by complaint on June 27, 2019.
According to the charging documents, Obispo Garcia obtained a Massachusetts driver’s license in the name of a U.S. citizen; Baez Pimental obtained a Massachusetts driver’s license in the name of a U.S. citizen, and MassHealth records reflect an application for health benefits under this same name; and Heureaux Carmona obtained a Massachusetts ID card in the name of a U.S. citizen.
The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
The DBFTF is currently investigating suspected aliens who are believed to have obtained stolen identities of United States citizens born in Puerto Rico. The DBFTF has investigated individuals who have used stolen identities to obtain public benefits which they would not otherwise be eligible to receive, including Massachusetts Registry of Motor Vehicles identity documents, Social Security numbers, MassHealth benefits, public housing benefits, and/or unemployment benefits.
In July 2018, a DBFTF-led investigation resulted in the arrests of 25 individuals on charges of identity theft and Social Security fraud, and in April 2019, a separate DBFTF-led investigation resulted in 11 additional arrests.
The charge of aggravated identity theft carries a mandatory two-year prison sentence that must run consecutively to any other sentence imposed, up to one year of supervised release, and a fine of up to $250,000. The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health & Human Services, Office of Inspector General, made the announcement today. Valuable assistance was provided by the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; U.S. Department of Labor, Office of Inspector General, Office of Investigations; U.S. Department of State, Diplomatic Security Service, Boston Field Office; U.S. Postal Inspection Service; U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, Boston; U.S. Citizenship and Immigration Services, District 1; HSI Country Attaché Santo Domingo, Dominican Republic; HSI Santo Domingo Transnational Criminal Investigative Unit; and the Massachusetts State Police. Assistant U.S. Attorney David Tobin and Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit are prosecuting the cases.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Texas Deputy Sheriff Charged with Sexual Exploitation of A MinorRead the Press Release
BOSTON – A law enforcement officer from Texas who was charged in federal court in Worcester earlier this week with cyberstalking, is now also charged with sexual exploitation of a minor.
Pasquale T. Salas, 25, a/k/a Gino, a deputy sheriff with the Matagorda County Sheriff’s Office, was charged with one count of sexual exploitation of a minor. Salas was arrested in Bay City, Texas, on Wednesday, July 31, 2019, and charged with cyberstalking a girl he met while playing the videogame Minecraft. A detention hearing is scheduled for Monday, Aug. 5, 2019, in federal court in Houston, Texas. He will appear in federal court in Worcester at a later date.
According to the charging document, Salas met the victim through an online video game website in 2014, when the minor was 12 years old. Salas and the girl communicated on a private chat room and then moved those communications to various other platforms, including text messaging, Skype and Snapchat. Salas repeatedly solicited the minor to transmit sexually explicit images and videos of herself.
Beginning as early as 2016, it is alleged that Salas intimidated the victim into maintaining contact with him and sending additional sexually explicit material by threatening that he would send the minor’s sexually explicit images and videos to her family and her friends. As recently as May 2019, when the victim attempted to terminate contact with Salas, he repeatedly sent threatening communications to the victim, using web-based applications to disguise the source of the communications.
It is alleged that at the time of Salas’ arrest, he was in possession of a smartphone, which contained at least one video, transmitted via social media, of the minor performing sexually explicit acts that Salas had coerced her to perform.
Members of the public who have questions, concerns, or information about this case should contact the U.S. Attorney’s Office in Boston at 617-748-3274.
The charge of sexual exploitation of a minor carries a mandatory minimum sentence of 15 years and up to 30 in prison, five years of supervised release and a fine of up to $250,000. The charge of cyberstalking carries a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. 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 Douglas Police Chief Nick Miglionico made the announcement today. Valuable assistance was provided by the United States Attorney’s Office for the Southern District of Texas, the Federal Bureau of Investigation, Houston Field Office, the Matagorda (Texas) County Sheriff’s Office and the Worcester Police Department. Assistant U.S. Attorney Kristen Noto from Lelling’s Worcester Branch Office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Telemarketer and His Companies Agree to Pay $2.5 Million to Settle Allegation That They Operated Telemedicine Schemes Involving Illegal Kickbacks and Unnecessary PrescriptionRead the Press Release
United States Attorney J. Douglas Overbey and U.S. Attorney Maria Chapa Lopez for the Middle District of Florida announce that Scott Roix, together with several entities through which he ran his telemarketing business, including HealthRight, LLC; Health Savings Solutions, LLC; Vici Marketing, LLC; and Vici Marketing Group, LLC (hereinafter collectively referred to as “marketing companies”), have agreed to pay $2.5 million to resolve allegations that Roix and these marketing companies violated the False Claims Act by causing the submission of false claims to federal healthcare programs in connection with telemedicine health care fraud schemes.
The government alleged that: (1) Roix and his marketing companies fraudulently obtained insurance coverage information from consumers across the country to arrange for them to receive prescription pain creams and other similar products, (2) these prescriptions were not medically necessary and did not arise from a valid doctor-patient relationship, and (3) Roix and his marketing companies sold these prescriptions to pharmacies under the guise of marketing services, and the payments solicited were based on the volume and value of the prescriptions.
“The United States Attorney’s Office is committed to protecting TRICARE and other federal health care programs from improper practices that harm our nation’s healthcare programs,” said U.S. Attorney Chapa Lopez. “Those who generate prescriptions for profit and violate the Anti-Kickback Statute will be held accountable.”
“Prescriptions and other medical services resulting from kickbacks undermine the integrity of our health care system,” said U.S. Attorney Overbey. “Telemedicine is a valuable service for our citizens, but it must not be abused. We will take action against individuals who break the law to make a profit at the expense of our federal healthcare programs and, ultimately, at the expense of the American taxpayer.”
“Telemarketing fraud is a major threat to the integrity of the Medicare program,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Unscrupulous companies collect patient information then sell it to pharmacies and other medical providers in exchange for kickbacks.”
U.S. Postal Service Office of Inspector General Special Agent in Charge Kenneth Cleevely, Eastern Area Field Office, stated, “The U.S. Postal Service spends billions of dollars per year in workers compensation-related costs, most of which are legitimate. However, when medical providers or companies choose to flout the rules and profit illegally, special agents with the USPS OIG will work with our law enforcement partners to hold them responsible. To report fraud or other criminal activity involving the Postal Service, contact our special agents at https://www.uspsoig.gov/ or 888-USPS-OIG.”
“This settlement demonstrates the commitment of the Defense Criminal Investigative Service and our law enforcement partners to ensure that individuals do not unjustly enrich themselves by abusing the Department of Defense TRICARE program. DCIS protects the integrity of DoD programs by rooting out fraud, waste, and abuse which diverts American taxpayer dollars intended to support our Warfighters,” said Special Agent in Charge, Cyndy Bruce, Southeast Field Office.
“Today’s settlement demonstrates the commitment of the Office of Personnel Management Office of the Inspector General and our law enforcement partners at the Department of Justice to ensuring that federal health care programs, including the Federal Employees Health Benefits Program, are protected from fraud and abuse,” said Thomas W. South, the OPM Deputy Assistant Inspector General for Investigations. “I am immensely proud of the work our office has done to not only safeguard taxpayer dollars, but also protect the health and wellbeing of federal employees, annuitants, and their families.”
“This settlement emphasizes the collaborative effort by the FBI and our law enforcement partners to target those individuals who cheat the system and destroy public trust in our federally funded healthcare programs,” said Michael F. McPherson, Special Agent in Charge of the FBI Tampa Division.
The settlement resolves allegations that, beginning in September 2014, Health Savings Solutions, at the direction of Roix, received payments from Oldsmar Pharmacy that were based on the value and volume of prescriptions solicited by Health Savings Solutions in violation of the Anti-Kickback Statute, and the False Claims Act. These allegations were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims, and to receive a share of any recovery. The qui tam case against Roix and Health Savings Solutions was filed by Jennifer Silva and Jessica Robertson and is captioned: United States ex rel. Silva, et al. v. Vici Marketing, LLC, et al., Middle District of Florida (Case No. 8:15-cv-444-T-33TGW). Ms. Silva and Ms. Robertson will receive $287,500 of the settlement.
The settlement also resolves allegations that, from June 2015 through October 2018, HealthRight, at the direction of Roix, received payments from Synergy Pharmacy that were based on the value and volume of prescriptions solicited by HealthRight on behalf of Synergy Pharmacy. These allegations were also the subject of a criminal case captioned United States v. Scott Roix, et al., Eastern District of Tennessee (Case No. 2:18-cr-133), in which Roix and HealthRight pleaded guilty in September 2018.
This investigation was a collaborative effort between the U.S. Attorneys’ Office of the Eastern District of Tennessee and the Middle District of Florida. It was handled by Assistant U.S. Attorneys Jeremy Dykes, Michael Kenneth, and Jessica Sievert, with support from HHS-OIG, OPM-OIG, USPS-OIG, DOD-DCIS, and FBI.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Sureno Street Gang Member Sentenced to Federal Prison for Drug TraffickingRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Justin Mark Mullenix, age 35, of Spokane, Washington, was sentenced today after having pleaded guilty on March 13, 2019, to Conspiracy to Distribute 500 Grams or More of Methamphetamine. Chief United States District Judge Thomas O. Rice sentenced Mullenix to a 17-year term of imprisonment, to be followed by a 5-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, Mullenix, a Sureno criminal street gang member, had been released back to Spokane from Washington State prison after serving a term of incarceration for a conviction for Attempted First Degree Assault. The prior conviction arose from an incident where Mullenix shot an individual he believed to be a police informant during a drug deal. After being released from state prison, and while on state court supervision, Mullenix chose to re-engage in significant heroin and methamphetamine trafficking with other Sureno gang members. In sentencing Mullenix, Judge Rice noted Mullenix’s lengthy history of committing violence in the community, which included multiple previous serious assault and drug trafficking convictions.
United States Attorney Hyslop said “This case is a prime example why the United States Attorney’s Office for the Eastern District of Washington continues to prioritize prosecution of gang-related drug trafficking. I commend the outstanding work of the law enforcement officers with the Spokane Police Department, the United States Drug Enforcement Administration and the Northwest High Intensity Drug Trafficking Area who investigated this case. Their seamless partnership resulted in the removal of a recidivist drug trafficker from our community.”
Spokane Police Department Captain Brad Arleth stated that “The Spokane Police Department Investigative Division would like to thank our federal partners for the hard work they put in to the investigation and prosecution of this case. We will continue to work together to reduce the flow of drugs and the violence associated with their distribution, to make our community safer.”
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Spokane Resident Office of the Drug Enforcement Administration, the Spokane Police Department, and the Northwest High Intensity Drug Trafficking Area. This case was prosecuted by Caitlin Baunsgard, an Assistant United States Attorney for the Eastern District of Washington.
St. Petersburg Man Arrested After Attempted Armed RobberyRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the arrest of Terrian J. Knight (29, St. Petersburg) on a criminal complaint charging him with being a felon in possession of a firearm. If convicted, Knight faces a maximum penalty of 10 years in federal prison.
According to the
complaint , on July 30, 2019, Knight attempted to rob the assistant manager of a St. Petersburg Family Dollar store as the manager was leaving the store. During the course of the robbery, Knight produced a firearm and shot the victim twice. After hiding in a retention pond area for approximately seven hours, Knight was taken into custody, and law enforcement recovered the firearm used in the shooting.A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Petersburg Police Department. It will be prosecuted by Assistant United States Attorney Callan Albritton.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. 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.
St. Lucie County Resident Sentenced to Prison and Ordered to Pay over $1 Million for Orchestrating Wire Fraud Scheme and Embezzling EmployersRead the Press Release
On July 31, 2019, Sabrinea Lallonie Brooks, 28, of St. Lucie County, Florida, was sentenced by U.S. District Judge Robin L. Rosenberg to 48 months in prison and ordered to pay $ 1,071,249 in restitution for orchestrating a wire fraud scheme and embezzling funds from employers (Case No. 19cr14020).
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and Javaro Sims, Chief, Delray Beach Police Department, made the announcement.
According to the court docket, including the criminal Information and a Stipulated Factual Basis that was filed in support of Brooks’ guilty plea, between February 2014 through December 2015, Brooks was employed as a billing and collections specialist by companies Apex Billing, LLC, Dream Center for Recovery, Supportive Healthcare Services, and Wellness Center of Palm Beach, LLC. Brooks without authorization, contacted third party issuer agents of insurance companies and using fraudulent pretenses and making materially false representations, caused the third party issuer agents of insurance companies to give her treatment provider registration codes, pin numbers, and links. Brooks used this information to access the third party issuer agents’ website, to create new user accounts, to re-register treatment providers, and change the method of payment and/or the routing of insurance provider payments, intended for treatment providers. As a result of her wire fraud, Brooks received at least $463,402.30 in illegal proceeds.
While working for these companies, Brooks also intercepted “Vpayments”/ virtual credit cards issued as insurance payments to several treatment providers. Thereafter, Brooks processed some of the “Vpayments”/ virtual credit cards using the Square merchant processing mobile payment program. Brooks created several Square accounts, which she linked to bank accounts under her control. Because of her access device fraud, Brooks received at least $57,632.76, in illegal proceeds.
While working for Wellness Center of Palm Beach, LLC, as a billing manager, Brooks also created a fraudulent company, and opened SunTrust Bank account, in the name of “Wellness Ctr of Palm Beach Billing LLC.” Thereafter, Brooks deposited checks payable to Wellness Center of Palm Beach, LLC, into the SunTrust Bank account that were endorsed with her signature and a stamp listing her fraudulent billing company. Because of her theft of Wellness Center of Palm Beach, LLC checks, Brooks received at least $352,521.72, in illegal proceeds.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the USSS and Delray Beach Police Department in this matter. This case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov
St. Louis Man Pleads Guilty to Killing Laclede Cab DriverRead the Press Release
St. Louis, MO – James Flannel, 37, of St. Louis, MO, pleaded guilty this morning to one count of discharging a firearm in furtherance of carjacking that resulted in the death of Boris Iouioukine, a Laclede Cab Company driver. Flannel appeared before U.S. District Judge E. Richard Webber who accepted his plea and set his sentencing date for October 31, 2019.
According to the plea agreement, Flannel was in the possession of a nine-millimeter firearm and magazine on June 25, 2018. Flannel called the Laclede Cab Company and ordered a taxi. A red minivan taxi being driven by victim Boris Iouioukine responded to Flannel’s request. Flannel got into the taxi at approximately 8:52 p.m. Flannel was armed with the nine millimeter firearm when he entered the taxi.
At approximately 9:14 p.m. while inside the taxi, Flannel shot and killed Boris Iouioukine with the nine-millimeter pistol. The shooting occurred inside the cab while the taxi was present in 2500 block of East Dodier within the City of St. Louis. Boris Iouioukine’s body was left in the street by Flannel. Flannel drove the taxi from the area after the shooting. Flannel drove the taxi to the area of Castle Point in Saint Louis County, Missouri. Flannel parked the taxi at the driveway of a residence in the 10000 block of Duke Drive and fled.
At approximately 9:26 p.m., the St. Louis Metropolitan Police Department received calls for help relative to a man down in the middle of the street. Police and the fire department responded and located Boris Iouioukine. Paramedics pronounced Boris Iouioukine dead at the scene.
Victim Borsi Iouioukine’s taxi was located by police on the morning of June 26, 2018. Among other things, a nine-millimeter shell casing was located and seized from the driver’s side floorboard. Other items were seized from inside the taxi, including a water bottle. Analysis of the water bottle located Flannel’s print on it. Flannel was charged by way of federal complaint on June 27, 2018.
On August 10, 2018, investigators initiated an investigation within Spanish Lake Park in an effort to locate and recover the nine millimeter firearm utilized by Flannel during the armed carjacking and murder. A search within the park eventually located a Taurus make, Millennium G2 model, nine millimeter semi-automatic pistol. The firearm was operable and loaded with 13 rounds. It was seized. Subsequent ballistic analysis of the firearm confirmed that the shell casing recovered from the within taxi was fired from the nine millimeter firearm located and seized from within Spanish Lake Park.
The charge of discharging a firearm in furtherance of a crime of violence resulting in death carries a mandatory minimum term of imprisonment of 10 years to life. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. As part of Flannel’s plea agreement, the parties will recommend at the time of sentencing that a sentence of life imprisonment be imposed.
"We continue to work tirelessly to reduce violence and the number of murders that occur within our community. Our entire office is dedicated to it. When a guilty plea like this is achieved, it is important to acknowledge the hard work and dedication our law enforcement partners expend to bring the culprit to justice as soon as a murder, or any crime for that matter, occurs,” said United States Attorney Jeff Jensen following Flannel’s guilty plea. “Boris Iouioukine was a superb, hardworking, valued member of our community. His murder was senseless. We hope today’s guilty plea brings some measure of solace to Mr. Iouioukine’s family, co-workers, and all of those who loved him.”
“The St. Louis Metropolitan Police Department greatly appreciates the continued assistance of the U.S. Attorney’s Office. This partnership, coupled with the perseverance of all the law enforcement agencies involved in this investigation, led to today’s guilty plea. I hope this display of justice will help us combat these violent incidents that occur in our region,” said Chief John Hayden, St. Louis Metropolitan Police Department.
This case was made possible, in part, by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms and Explosives’ National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
“This case demonstrates the effectiveness of using ballistic intelligence to identify those using firearms to commit violent crimes in our community. By targeting these offenders we are able to disrupt the shooting cycle that fuels violence and instantly make neighborhoods safer,” said Marino Vidoli, ATF Special Agent in Charge.
The St. Louis Metropolitan and St. Louis County Police Departments; United States Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Metro West Fire Protection District’s Dive/Rescue Response Team investigated this case.
Springdale Man Sentenced to 30 Years in Federal Prison for Producing Child PornographyRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Christopher Nebling, age 35, was sentenced today to 360 months in federal prison followed by 20 years of supervised release on two counts of Production of Child Pornography. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in November 2018, the Springdale Police Department responded to a report regarding the rape of a minor. As a result of the subsequent investigations, Nebling was arrested. Due to the allegations involving the use of a cell phone to take inappropriate pictures of the minors located in the residence, officers on the scene confiscated Nebling’s cellular phones. A subsequent forensic examination of the phones revealed multiple images of child pornography depicting two separate minors, ages 10 and 17.
Nebling was indicted in February 2019 on federal charges and entered his guilty plea in April 2019.
This case was investigated by the Department of Homeland Security, the Internet Crimes Against Children (ICAC) Task Force, and the Springdale Police Department. Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
Serial Bank Robber Sentenced to Nearly 11 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Terrance Maurice Goss (33, Tampa) to 10 years and 10 months in federal prison for committing four bank robberies and two attempted bank robberies. The court also ordered Goss to forfeit $6,462, the funds he had stolen from the banks.
Goss had pleaded guilty on May 21, 2019.
According to court documents, between January 11 and 25, 2019, Goss robbed four banks. On January 11, 2019, he robbed the Wells Fargo Bank located at 2699 Gulf to Bay Boulevard in Clearwater. He robbed a second Wells Fargo Bank located at 5250 East Bay Drive in Clearwater on January 15, 2019. Two days later, he robbed the Centennial Bank located at 5850 Fruitville Road in Sarasota. On January 25, 2019, Goss robbed a Wells Fargo Bank in Davenport. Additionally, Goss attempted to rob the TD Bank located at 6108 U.S. Highway 98 North in Lakeland on January 17, 2019, and the SunTrust Bank located at 1075 Carpenters Way in Lakeland on January 25, 2019.
During each robbery, and attempted robbery, Goss entered the bank and handed the teller a note demanding money. Following Goss’s robbery of the bank in Davenport, he led law enforcement officers on a high-speed chase, ultimately crashing his car. The officers recovered a loaded pistol from the car after the crash.
This case was investigated by Federal Bureau of Investigation, the Largo Police Department, the Clearwater Police Department, the Sarasota County Sheriff’s Office, the Polk County Sheriff’s Office, the Lakeland Police Department, the U.S. Marshals Service, and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Taylor G. Stout.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. 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.
Pottawattamie County Man Sentenced to Prison for Firearm OffenseRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on July 31, 2019, Kevin Lee Longo, age 46, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger for Prohibited Person in Possession of a Firearm. Longo was sentenced to 46 months in prison, to be followed by a term of supervised release for three years.
On September 20, 2018, Council Bluffs Police responded to a call about a man who had pointed a gun and fired a round into the air. An investigation revealed the Defendant and a victim had an exchange regarding a former girlfriend of Longo’s, after which Longo pulled out a firearm and threatened the victim. Officers received permission to search Longo’s vehicle and located a pellet gun, marijuana, methamphetamine, crushed pills, pipes, a scale, bb’s, CO2 cartridges, and .380 ammunition. A subsequent search yielded a loaded black and silver Walther PK380 firearm Longo had hidden in a shed.
This case was investigated by the Council Bluffs Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
Pottawattamie County Man Sentenced for Coercion and Enticement of a MinorRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on July 31, 2019, Andrew Steven Newport, age 31, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger for Coercion and Enticement of a Minor. Newport was sentenced to 10 years in prison to be followed by a term of supervised release of 10 years.
In September 2018, Council Bluffs Police received a call from a concerned parent who had received messages through Facebook from Newport and thought Newport was communicating with her thirteen year old daughter. The mother gave the Facebook information to the Council Bluffs Police and an undercover officer continued to communicate with Newport. Newport asked who he believed to be the minor girl to meet him at the Council Bluffs Library and offered her $200 to have sex. Council Bluffs Police Officers met Newport at the arranged meeting place and arrested him. Newport had his phone, a pocket knife, airsoft gun with light mount, and a fraudulent FBI investigator card. Newport admitted he went to the library to meet a 13 year old girl for sex. Newport pleaded guilty to this charge in March 2019.
This case was investigated by the Council Bluffs Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Pocatello Man Sentenced to Prison on Federal Gun ChargeRead the Press Release
POCATELLO – Adam W. Harper, 33, of Pocatello, was sentenced yesterday to 27 months in prison for possession of a firearm by a prohibited person, U.S. Attorney Bart M. Davis announced. U.S. District Court Judge B. Lynn Winmill ordered that upon completion of his sentence, Harper will serve an additional three years of supervised release. A federal grand jury indicted Harper on January 23, 2019.
According to court records, on December 14, 2018, law enforcement officers stopped Harper in Pocatello going the wrong way down a one-way street. After observing drug paraphernalia in the center console, officers searched Harper’s vehicle. In it, they found a .40 caliber handgun. Harper later admitted to possessing the firearm. Two prior felony convictions prohibited Harper from possessing the firearm. One felony resulted from a previous attempt to remove a firearm from a law enforcement officer.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pocatello Police Department, and the Bannock County Sherriff’s Office.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Pascagoula Man Sentenced to over 10 Years in Federal Prison for Methamphetamine TraffickingRead the Press Release
Gulfport, Miss. – Tyron Jerrod Nelson, 35, of Pascagoula, was sentenced yesterday by Senior U.S. District Judge Louis Guirola, Jr. to 128 months in federal prison, followed by 5 years of supervised release, for conspiring to possess with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Drug Enforcement Administration Special Agent in Charge Bradford L. Byerley. The defendant was also ordered to pay a $7,500 fine.
On March 2, 2016, DEA agents executed a criminal search warrant at Nelson’s home, with Nelson present, wherein DEA agents seized 902 grams of Methamphetamine (ICE), 27 grams of Cocaine, MDMA, and approximately 117 pounds of Marijuana.
Further investigation revealed that, in March 2017, Nelson had traveled to Houston, Texas and purchased a kilogram of methamphetamine. Nelson brought the methamphetamine back to Pascagoula, Mississippi, for further distribution. The individual who sold the methamphetamine to Nelson in Texas was ultimately prosecuted in the Southern District of Mississippi and he corroborated the information uncovered during the investigation. Further investigation revealed that Nelson had also sold multiple kilograms of methamphetamine in December 2017 in both Gulfport, Mississippi, and New Orleans, Louisiana.
DEA agents arrested Nelson in Gulfport, and during the execution of a search warrant at the residence where Nelson was located, DEA agents seized over $160,000.00 hidden in the attic. Nelson admitted to parts of the bulk currency being comprised of funds derived from the illicit sale of narcotics.
The case was investigated by the DEA and prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Owners of Orange County Car Dealership Arrested on Tax and Bank Fraud ChargesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Jonathan D. Larsen, Special Agent in Charge of the New York Office of the Internal Revenue Service, Criminal Investigation Division (“IRS-CI”), and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrests today of MEHDI MOSLEM and SAAED MOSLEM, father-and-son operators of the Exclusive Motor Sports car dealership in Central Valley, New York. The defendants will be presented before United States Magistrate Judge Lisa Margaret Smith.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Mehdi and Saaed Moslem defrauded the United States by understating income and inventory of their auto dealership, and they defrauded lenders by overstating their net worth in loan applications. Whether allegedly understating or overstating, father and son were falsifying – and committing crimes.”
IRS-CI Special Agent in Charge Jonathan D. Larsen said: “Today’s arrests show that underreporting business gross receipts to conceal millions of dollars of income is a serious criminal offense. IRS Criminal Investigation will pursue those individuals who break the law and violate the American tax system.”
FBI Assistant Director William F. Sweeney Jr. said: “Lying to financial institutions and skirting the regulations put in place by U.S. tax laws is a violation of federal law, crimes both Mehdi and Saaed Moslem are charged with today. The popular saying about certainties in life omits a third guarantee – when the FBI and IRS catch you engaging in fraudulent behavior and illegal business practices, you will be charged.”
As alleged in the Indictment, which was unsealed today in White Plains federal court:[1]
From 2009 through 2016, MEHDI MOSLEM and SAAED MOSLEM conspired to defraud the United States by concealing millions of dollars of profits relating to Exclusive Motor Sports from the IRS. To falsely lower their business income, MEHDI MOSLEM and SAAED MOSLEM caused their accountant to prepare partnership tax returns that significantly understated Exclusive Motor Sports’ gross receipts and inventory. The fraudulent business income figures passed through to MEHDI MOSLEM’s and SAAED MOSLEM’s personal tax returns filed with the IRS, resulting in a substantial underreporting of the amount of tax due. SAAED MOSLEM then used his fraudulent income tax returns and made other false statements to conceal his assets from creditors when he filed for bankruptcy in 2015.
From 2011 through 2017, MEHDI MOSLEM and SAAED MOSLEM also conspired to defraud multiple financial institutions by submitting falsely inflated net worth statements and fabricated tax returns in connection with loan applications, including for a $1.2 million mortgage on the Exclusive Motor Sports property in Central Valley, on which they later defaulted.
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MEHDI MOSLEM, 70, of Central Valley, New York, and SAAED MOSLEM, 35, of Central Valley, New York, are each charged with one count of conspiracy to defraud the United States, which carries a maximum sentence of five years in prison, and one count of bank fraud conspiracy, which carries a maximum sentence of 30 years in prison. SAAED MOSLEM is also charged with two counts of making false statements to a lender, each of which carries a maximum sentence of 30 years in prison, and one count of concealing assets and making false declarations in a bankruptcy case, which carries a maximum sentence of five years. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the IRS-CI and the FBI.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Daniel Loss is 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.
Owner of bail bonding company sentenced for tax fraudRead the Press Release
WHEELING, WEST VIRGINIA –William W. Seelbach, of Fort Meyers, Florida, was sentenced today to three years probation for tax fraud, United States Attorney Bill Powell announced.
Seelbach, age 69, owner of W&S Bail Bonding, doing business as A Bail Bonding by ABC of Wheeling, West Virginia, pled guilty to one count of “Conspiracy to Defraud the United States—Impede the Internal Revenue Service,” and one count of “Failure to File Individual Income Tax Return for Tax Year 2012” in June 2018. Seelbach admitted to impeding the IRS in its collection of taxes, and failing to file a federal income tax return for 2012 to report $144,030 in income to the IRS.
Seelbach also was ordered to pay $83,607 in restitution, which was paid in full.
Assistant U.S. Attorneys Jarod J. Douglas and Shawn M. Adkins prosecuted the case on behalf of the government. The Federal Bureau of Investigation, the Internal Revenue Service, the West Virginia Commission on Special Investigations, and the West Virginia State Police investigated.
U.S. District Judge John Preston Bailey presided.
Opa-Locka Resident Sentenced to 108 Months in Prison for Drug Trafficking Near an Elementary SchoolRead the Press Release
The defendant used his home for distribution of cocaine and cocaine base a/k/a “crack cocaine”
U.S. District Judge Roy K. Altman sentenced an Opa-Locka resident to serve nine years in prison for drug trafficking within 1,000 feet of a school.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Katherine Fernandez Rundle, State Attorney, Miami-Dade State Attorney’s Office, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
According to the court record, MDPD executed a search warrant at Tavares McCray, 42, residence on June 13, 2018, after two controlled purchases of cocaine from the home. At that time, McCray was found inside of the home with his 15 and 12 year-old daughters, and his two year-old son. Inside of the residence, law enforcement found 169.1 grams of powder cocaine and 33.6 grams of crack cocaine packaged for distribution. The drugs were concealed in a PVC pipe and a false-bottom paint can. Additionally, drug paraphernalia used in the manufacture and distribution of narcotics was found on the kitchen counter and in a kitchen drawer. During the search, a Glock 26 firearm loaded with fifteen rounds of ammunition was found in a women’s purse. McCray had over $2,400, in bundles consistent with the sale of narcotics in his shorts pocket. McCray’s residence was located within 1,000 feet of Nathan B. Young Elementary School.
U.S. Attorney Fajardo Orshan commends the investigative efforts of ATF and the MDPD. Ms. Fajardo Orshan also thanked the Miami-Dade State Attorney’s Office and Drug Enforcement Administration for their assistance. This case was prosecuted by Special Assistant U.S. Attorney Benjamin A. Gellis from the Miami-Dade State Attorney’s Office and Assistant U.S. Attorney Ajay Alexander.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Nigerian National Involved in Business E-Mail Compromise Scheme Sentenced to 3 Years in PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that STANLEY HUGOCHUKWU NWOKE, also known as “Stanley Banks,” “Banks,” “Hugo Banks,” “Banky,” and “Jose Calderon,” 28, a citizen of Nigeria, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 36 months of imprisonment for his role in a business e-mail compromise scheme.
According to court documents and statements made in court, Nwoke conspired with Adeyemi Odufuye and others in a business compromise scheme that targeted hundreds, if not thousands, of CFOs, controllers and others at businesses, nonprofit organizations, and schools in Connecticut and across the United States. As part of the scheme, Odufuye, Nwoke and others, including Olumuyiwa Yahtrip Adejumo, sent e-mails addressed to executives that were made to appear to be sent from the legitimate e-mail address of the CEO or other executive from the business. The emails were sent with the intent of having the recipients send or wire money to bank accounts used by members of the conspiracy.
The investigation revealed that scheme participants controlled multiple e-mail and social media accounts used in the scheme and, in certain instances, sent e-mails and attachments containing malware to the intended recipients.
In late 2015, Odufuye and others sent or caused to be sent dozens of e-mails to the controller of a company in Torrington, Connecticut. In the e-mails, Odufuye posed at the real CEO of the victim company and instructed the controller to send multiple wire transfers exceeding a total of $1 million from the company’s accounts to various individuals and purported entities. The company then sent five wire transfers totaling more than $500,000 to accounts in Virginia, Florida, Washington, D.C., and Hong Kong.
The investigation revealed that Odufuye and others also targeted a company headquartered in Waterbury, Connecticut, as part of this scheme.
Judge Hall ordered Nwoke to pay restitution of $662,053.87.
Nwoke was arrested in Mauritius on May 8, 2018, was extradited to the U.S., and has been detained since his arrest. On May 7, 2019, he pleaded guilty to one count of conspiracy to commit wire fraud.
Odufuye, formerly residing in Sheffield, United Kingdom, and Adejumo, formerly residing in Toledo, Ohio, both citizens of Nigeria, previously pleaded guilty to related charges. On December 12, 2018, Odufuye was sentenced to 45 months of imprisonment and was ordered to pay restitution of $921,497.87 to victims of the scheme. On August 17, 2018, Adejumo was sentenced to 15 months of imprisonment.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut Cyber Task Force. The case was prosecuted by Assistant U.S. Attorney David T. Huang.
U.S. Attorney Durham thanked the Department of Justice’s Office of International Affairs, the United Kingdom’s National Crime Agency, the United Kingdom’s Metropolitan Police, and the Mauritius Police Force’s Central Criminal Investigation Department for their assistance in this case.
To contact the Connecticut Cyber Task Force, please call the FBI in New Haven at 203-777-6311.
Montgomery County Doctor Charged with Illegally Prescribing OpioidsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Spiro Y. Kassis, M.D., 66, of Plymouth Township, PA, was charged by Information with 14 criminal counts of distributing dangerous and addictive opioids and other controlled substances outside the course of professional practice and without a legitimate medical purpose.
According to the Information, the defendant, who claimed to be a specialist in psychiatry and addiction medicine, operated medical offices in East Norriton Township, PA and Scranton, PA. Kassis used his offices to operate a prescription “pill mill” whereby he sold medically unnecessary prescriptions for opioids drugs such as oxycodone and burprenorphine, and other controlled substances. The defendant sold prescriptions to so-called patients for approximately $200 cash each. At the East Norriton office, Kassis saw approximately 45 “patients” per day, who lined up outside of a back room to the office. As each person filed in, Kassis collected $200 cash from the patient, counted the money, and then issued the requested prescriptions electronically to the patient’s pharmacy. Often, the defendant issued dangerous combinations of prescriptions including oxycodone, methadone, and buprenorphine, all to the same patient.
“My Office is committed to working with our law enforcement partners at all levels to find those responsible for flooding our neighborhoods with these dangerous drugs and bringing them to justice,” said U.S. Attorney McSwain. “I want to thank Montgomery County District Attorney Kevin Steele and his Office for referring this case for federal prosecution and for their cooperation as we bring drug dealers – whether they wear a lab coat or stand on a street corner – to justice.”
“The defendant, Spiro Kassis, may have had the title of doctor but he was simply a drug dealer, peddling addiction by using a prescription pad,” said Montgomery County District Attorney Kevin R. Steele. “Kassis was selling thousands of prescriptions purely to make money. Instead of being a healer and doing no harm, he was a major contributor to the opioid-heroin-fentanyl epidemic that is killing so many people in our communities.”
If convicted, the defendant faces a maximum possible sentence of 250 years in prison.
The case was investigated by the Drug Enforcement Agency; Federal Bureau of Investigation; Health and Human Services – Office of Inspector General; and Montgomery County Detective Bureau’s Narcotics Enforcement Team, and is being prosecuted by Assistant United States Attorney M. Beth Leahy, and Special Assistant United States Attorney James Price who was cross-designated by the Montgomery County District Attorney for this prosecution. The related civil actions are being handled by Assistant United States Attorney Anthony Scicchitano.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Michigan Woman Convicted of Obstructing the IRSRead the Press Release
A federal jury in Flint, Michigan, convicted Gerri Avery today of engaging in a corrupt endeavor to obstruct and impede the due administration of the internal revenue laws, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to court documents and evidence presented at trial, Avery obstructed the Internal Revenue Service (IRS) in its attempts to collect payroll taxes due and owing for Integrated HCS Practice Management (Integrated), a Southfield, Michigan, company, by providing false and misleading information to the IRS Revenue Officer attempting to collect the taxes owed. Integrated, a management services business for healthcare providers, failed to pay payroll taxes due from its employees for the third quarter of 2013, the fourth quarter of 2013, and the first quarter of 2014. Avery, whose duties at Integrated were central to the business’s operations, made statements to the IRS Revenue Officer that attempted to minimize her involvement in and knowledge of the business as well as the involvement of Joseph DeSanto, one of the owners of the business. Avery also told the IRS she did not know how to obtain bank statements and other documents related to the business, despite regularly accessing such records as part of her responsibilities for the company.
In a related case, DeSanto himself has pleaded guilty to failing to collect, truthfully account for, and pay over payroll taxes relating to Integrated and to failure to file his personal tax return for 2013.
United States District Judge Laurie J. Michelson scheduled sentencing for Dec. 4, 2019. Avery faces a maximum of three years in prison and a fine of up to $250,000, in addition to a term of supervised release and restitution.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS-Criminal Investigation and the FBI, who conducted the investigation, and Tax Division Trial Attorneys Mark McDonald and William Guappone, who are prosecuting the case, and paralegal Eric Mahoney.
Additional information about the Tax Division’s enforcement efforts can be found on the Division’s website.
Mexican National Sentenced for Meth Trafficking in 21-Pound Bust by SD Highway PatrolRead the Press Release
United States Attorney Ron Parsons announced that a man from San Jose, Mexico, who entered the United States and was subsequently apprehended in South Dakota and convicted of Possession with Intent to Distribute Methamphetamine was sentenced on July 31, 2019, by U.S. District Judge Roberto A. Lange.
Heriberto Navarro Ortiz, age 33, was sentenced to 41 months in federal prison, 1 year of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
“First of all, I want to commend the South Dakota Highway Patrol for its excellent work in apprehending this drug trafficker,” said U.S. Attorney Parsons. “Most of the meth trafficked in South Dakota and across the United States is produced by violent Mexican drug cartels and smuggled across our southern border. Federal, State, Local, and Tribal law enforcement authorities are working together to do everything possible to stamp out this poison and hold the traffickers accountable.”
Ortiz was indicted by a federal grand jury on December 4, 2018. He pleaded guilty on May 3, 2019.
In early November of 2018, Ortiz was hired to travel to the United States and deliver a load of methamphetamine from California to Minnesota. Using funds provided by his contact, Ortiz flew from Guadalajara, Mexico, to Tijuana, Mexico, and then crossed the border into the United States on foot. Ortiz’s contact then instructed him to travel to Apple Valley, California, where he picked up a silver Chevrolet Malibu loaded with approximately 21 pounds of packaged methamphetamine, and began heading east.
On November 22, 2018, a Trooper with the South Dakota Highway Patrol stopped Ortiz’s car for speeding on Interstate 90 near mile marker 216. After obtaining consent to search the vehicle, the Trooper discovered a package containing methamphetamine wrapped in plastic tape beneath the carpet covering a rear wheel well. A thorough search of the car revealed that it contained nineteen hidden packages weighing approximately 21 pounds. Six packages were located in the rear wheel well, four were inside of the driver and passenger seat backs, and nine were in the windshield cowling. The South Dakota Public Health Laboratory determined that the packages contain 8.4 kilograms of pure methamphetamine. Prior to November 2018, Ortiz had entered the United States at least seven or eight times.
This case was investigated by the South Dakota Highway Patrol and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Ortiz was immediately turned over to the custody of the U.S. Marshals Service.
Mexican National Sentenced to More Than 6 Years in Federal Prison for Illegal Reentry After DeportationRead the Press Release
Fayetteville, AR – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Erasmo Ortiz-Torres, age 41, was sentenced yesterday to 78 months in federal prison followed by deportation proceedings for illegally reentering the United States after being deported. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, immigration authorities encountered Ortiz-Torres at Washington County Jail on December 13, 2018. Ortiz-Torres is a Mexican national formerly residing in Fayetteville, Arkansas. Through fingerprints, agents determined Ortiz-Torres’ identity, criminal history, and alienage. According to his immigration file, Ortiz-Torres has been issued reinstated removal orders multiple times since he was first removed from the United States in 2001. In 2006, he was convicted of illegal reentry into the United States after deportation subsequent to an aggravated felony conviction. In 2017, he was deported again. After his most recent removal, Ortiz-Torres reentered the United States voluntarily and without lawful authority.
Ortiz-Torres was indicted by a federal grand jury in March 2019 and entered a guilty plea in May 2019. He will be subject to deportation upon completion of his sentence.
The investigation was conducted by Immigration and Customs Enforcement’s Enforcement and Removal Operation. Assistant United States Attorneys Sydney Butler and Amy Driver prosecuted the case for the United States.
Maryland Man Pleads Guilty to Bribing D.C. Public OfficialsRead the Press Release
WASHINGTON – Marvin Parker, 60, of Silver Spring, Maryland, pled guilty Wednesday to one count of bribery of public officials, U.S. Attorney Jessie K. Liu announced.
Parker pled guilty before the Honorable Magistrate Judge Deborah A. Robinson in the U.S. District Court for the District of Columbia to a criminal Information, charged with one count of bribery of public officials and witnesses on July 31, 2019. Parker faces up to 15 years of prison, up to three years of supervised release, and a fine up to $250,000. As part of his plea, Parker will pay a special assessment of $100 per felony conviction to the Clerk of the United States District Court for the District of Columbia.
According to Parker’s admissions made in connection with his plea, Parker is the owner and sole proprietor of RPM Associates. As part of his business, Parker made cash payments to two employees of the Metropolitan Police Department (MPD). Parker made those payments to MPD employees to influence them to provide him with information about individuals who had been involved in traffic accidents in Washington, D.C. Upon receipt of this information, Parker would contact those individuals by phone and offer to assist them with obtaining legal representation and medical services. MPD’s General Orders prohibits officers and employees from releasing Traffic Crash Reports except under limited circumstances. D.C. Law prohibits the solicitation of traffic accident victims within 21 days of the accident when the solicitation is for financial gain and for the purpose of directing the victim to practitioners, such as attorneys or medical providers.
Specifically, Parker paid MPD Employee 1 approximately $50 to $200 per week in cash for the Traffic Crash Report information. Parker paid MPD Employee 2 approximately $400 to $500 per week in cash for the Traffic Crash Report information.
In total, between August 23, 2015, and October 11, 2017, Parker made more than $40,000 in cash payments to MPD Employee 1 and MPD Employee 2, in exchange for them providing Parker with Traffic Crash Report information in violation of their official duties as MPD employees.
In announcing the plea, U.S. Attorney Liu commended the work of those who assisted the case from the Federal Bureau of Investigation’s Washington Field Office and MPD’s Internal Affairs Division. She also acknowledged the work of those who handled the case at the U.S. Attorney’s Office, including paralegal specialists Josh Fein and Mariela Andrade, and Assistant U.S. Attorneys David Misler, Andrew Floyd, and Colleen Kukowski who investigated and prosecuted the case.
Manhattan Doctor Pleads Guilty to Accepting Bribes and Kickbacks from Pharmaceutical Company in Exchange for Prescribing Fentanyl DrugRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that DIALECTI VOUDOURIS, a doctor who practiced in Manhattan, pled guilty today to conspiracy to violate the Anti-Kickback Statute, in connection with a scheme to prescribe Subsys, a potent fentanyl-based spray, in exchange for bribes and kickbacks from Subsys’s manufacturer, Insys Therapeutics. VOUDOURIS pled guilty before U.S. Magistrate Judge Ona T. Wang. The case is assigned to U.S. District Judge Kimba M. Wood.
U.S. Attorney Geoffrey S. Berman said: “As she admitted today, Dialecti Voudouris, a prominent Manhattan oncologist, prescribed her patients Subsys, a powerful fentanyl drug, in exchange for over $100,000 in bribes and kickbacks from the drug’s manufacturer, Insys. Today’s guilty plea – the third in this case – once again demonstrates that when a doctor’s best medical judgment is compromised by bribes, this Office will hold that physician to account, especially when a dangerous opioid like fentanyl is involved.”
According to the allegations contained in the Indictment against VOUDOURIS and filings in related proceedings:
The Insys Speakers Bureau
Subsys, which is manufactured by Insys, is a powerful painkiller approximately 50 to 100 times more potent than morphine. The FDA approved Subsys only for the management of breakthrough pain in cancer patients. Prescriptions of Subsys typically cost thousands of dollars each month, and Medicare and Medicaid, as well as commercial insurers, reimbursed prescriptions written by VOUDOURIS.
In or about August 2012, Insys launched a “Speakers Bureau,” a roster of doctors who would conduct programs (“Speaker Programs”) purportedly aimed at educating other practitioners about Subsys. In reality, Insys used its Speakers Bureau to induce the doctors who served as speakers to prescribe large volumes of Subsys by paying them Speaker Program fees. Speakers were supposed to conduct an educational slide presentation for other health care practitioners at each Speaker Program. In reality, many of the Speaker Programs were predominantly social affairs where no educational presentation about Subsys occurred. Attendance sign-in sheets for the Speaker Programs were frequently forged by adding the names and signatures of health care practitioners who had not actually been present.
VOUDOURIS’s Participation in the Scheme
VOUDOURIS, a doctor specializing in oncology and hematology who worked at a private medical office on the Upper East Side, received approximately $119,400 in Speaker Program fees from Insys in exchange for prescribing large volumes of Subsys. During a September 2014 dinner with several Insys executives and managers, a senior Insys executive told VOUDOURIS, who had recently been nominated by Insys as a Speaker, that he wanted her to prescribe Subsys to one new patient every day, and that VOUDOURIS would be allocated Speaker Programs if she continued prescribing Subsys. In a conversation with an Insys manager and sales representative soon thereafter, VOUDOURIS was once again informed that Insys expected her to write more Subsys prescriptions. In the months that followed the dinner and this conversation, VOUDOURIS’s Subsys prescriptions rose significantly. By the end of the first quarter of 2015, VOUDOURIS – who had prescribed very minimal quantities of Subsys prior to becoming a Speaker for Insys – was approximately the 10th-highest prescriber of Subsys nationally, accounting for total net sales of Subsys of approximately $581,500 in that quarter alone.
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VOUDOURIS, 48, of Queens, New York, pled guilty to one count of conspiracy to violate the Anti-Kickback Statute, which carries a maximum sentence of five years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. VOUDOURIS is scheduled to be sentenced by Judge Wood on January 3, 2020.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation, and thanked the Department of Health and Human Services’ Office of Inspector General for its participation in the investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Noah Solowiejczyk and David Abramowicz are in charge of the prosecution.
Manchester Men Plead Guilty to Fentanyl TraffickingRead the Press Release
CONCORD – Jose Hiram Martinez Rolon, 27, of Manchester, and Billy Damuel Maldonado Cancel, 26, also of Manchester, pleaded guilty in federal court to drug trafficking charges in a 7-defendant narcotics case, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, between May and September, 2018, Maldonado conspired with other persons to distribute more than 40 grams of fentanyl as part of the Lucas Rios Drug Trafficking Organization. Investigators made controlled buys of fentanyl from Maldonado in Manchester on May 14, 2018, June 13, 2018, July 26, 2018, and September 19, 2018, totaling approximately 100 grams.
In a separate hearing, Martinez Rolon pleaded guilty to distribution of more than 40 grams of fentanyl. The evidence showed that on November 8, 2018, after an undercover officer arranged a fentanyl deal by telephone with Lucas Rios, Martinez Rolon delivered the drugs to the officer in Manchester and received a payment of $1200 cash. The quantity of fentanyl was approximately 100 grams.
Both defendants are scheduled to be sentenced on November 14, 2019.
Co-defendants Samuel Ramos and Abelino Morales-Padilla previously pleaded guilty to fentanyl trafficking charges in the same case.
“The illegal distribution of fentanyl endangers the health and safety of our citizens” said U.S. Attorney Murray. “Even a small amount of this drug can be lethal. In order to stop this deadly trade, we will continue to work with all of our law enforcement partners to arrest and prosecute those responsible”.
This matter was investigated by the U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations and the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney John Davis.
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Managers of Local Gold Dealer Plead Guilty to Money LaunderingRead the Press Release
Assistant U. S. Attorney Daniel Silva (619) 546-9713
NEWS RELEASE SUMMARY – August 2, 2019
SAN DIEGO – Global Gold Exchange, LLC and its managers, Jeffrey Morrow and Richard M. Owen, pleaded guilty in federal court today to multiple financial crimes, admitting that they laundered money through their unlicensed money transmitting business by falsely reporting cash transactions as sales of “gold” and other precious metals.
As part of their guilty pleas, the defendants agreed to forfeit approximately $2 million in assets involved in the money laundering and unlicensed money transmitting business.
Special Agents from IRS-Criminal Investigation’s Financial Investigations and Border Crimes Task Force worked with FBI agents and the United States Postal Inspection Service during the multi-year investigation to unravel millions of dollars in suspicious transactions taking place at the San Diego-based office and bank accounts of Global Gold Exchange, or GGEX. GGEX also pleaded guilty to mail fraud, while Owen also pleaded guilty to unlawful possession of a firearm or ammunition.
As detailed in the plea agreements entered today before U.S. Magistrate Judge Jill L. Burkhardt, GGEX unlawfully laundered cash and funds from a variety of sources – both lawful and unlawful – and fraudulently documented the transactions as “a complete gold transaction.” In sum, GGEX and its managers admitted operating “as an informal money transfer system engaged in facilitating the transfer of money domestically and internationally outside of the conventional financial institutions system, and did so without regard for the source, destination, purpose, or legality of the funds transmitted.”
Between 2017 and 2018, GGEX and managers Morrow and Owen admitted that they and others employed various money laundering and unlicensed money transmitting techniques to conduct unlawful transactions through GGEX and GGEX’s bank accounts, including:
-Transacting with a “local cartel out of Mexico;”
-Falsifying invoices for sales of gold, when in reality it was the receipt of a large cash deposit, and returned by check after GGEX took a 10 percent fee;
-Agreeing with “clients” to tell law enforcement or tax authorities that the transactions were sales/purchases of precious metals; and
-Advising clients to mail GGEX parcels filled with heavy substances to mimic the weight of gold to falsely document the nature of GGEX’s transactions.
“Global Gold Exchange and its managers attempted to operate as a one-stop-shop for money laundering,” said United States Attorney Robert S. Brewer, Jr. “The package of guilty pleas entered today makes clear that the United States will pursue and prosecute any individual, asset, or business attempting to launder the proceeds of crimes, or that threaten the integrity of our financial system.”
“Criminal organizations are becoming increasingly dependent on individuals and businesses who offer their expertise and services to assist in laundering illegal proceeds,” said Internal Revenue Service-Criminal Investigation Special Agent in Charge Ryan L. Korner. “Today’s plea should send a clear message to these individuals and businesses that they will be held accountable and face the consequences.”
“Global Gold Exchange and its managers Jeffrey Morrow and Richard M. Owen accepted money from all sources regardless of lawfulness,” said Nichole Cooper, Los Angeles Division Inspector in Charge, United States Postal Inspection Service. “They then subverted conventional financial institution systems by using fraudulent invoices, directing clients to mislead law enforcement, and labeling it ‘a complete gold transaction.’ The result of this plea agreement shows the US Postal Inspection Service and its federal partners bring justice to those who seek to hide their crimes from the law.”
This case is the result of ongoing efforts by the Financial Investigations and Border Crimes Task Force, a partnership targeting unlawful transactions through the financial system. The task force brings together the combined expertise of federal, state, and local law enforcement including IRS-CI, California Franchise Tax Board, United States Postal Inspection Service, and the San Diego Police Department. FBI and United States Postal Inspection Service partnered with the FIBC in this coordinated investigation. This case is being prosecuted by Assistant U.S. Attorney Daniel Silva.
Sentencing is scheduled to occur on October 16, 2019. Owen faces a maximum of 20 years in prison. Morrow faces a maximum of five years in prison. GGEX faces a maximum of five years probation.
DEFENDANTS Case Number 19-CR-2936-CAB
Global Gold Exchange, LLC
Richard M. Owen San Diego, CA Age: 49
Jeffrey Morrow San Diego, CA Age: 44
SUMMARY OF CHARGES*
Money Laundering – Title 18, U.S.C., Section 1956
Maximum penalty: Twenty years in prison and $500,000 fine
Operation of Unlicensed Money Transmitting Business – Title 18, U.S.C., Section 1960
Maximum penalty: Five years in prison and $250,000 fine
Mail Fraud – Title 18, U.S.C., Section 1341
Maximum penalty: Thirty years in prison and $1 million fine
Unlawful Possession of Firearm – Title 18, U.S.C., Section 922(g)
Maximum penalty: Ten years in prison and $250,000 fine
AGENCIES
IRS Criminal Investigations and the Financial Investigations and Border Crimes Task Force
Federal Bureau of Investigation
United States Postal Inspection Service
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Man Pleads Guilty to Assault on Langley Air Force BaseRead the Press Release
NEWPORT NEWS, Va. – A Hampton man pleaded guilty today to charges of assault by strangulation stemming from a February altercation aboard Langley Air Force Base.
According to court documents, Gregory Keith Fortune-Prior, 29, was involved in a verbal argument with his son’s mother at her residence on Langely Air Force Base. During the argument, Fortune-Prior physically assaulted the victim by grabbing the back of her neck, throwing her on to the bed, and then hitting the victim causing her nose to bleed. After the victim exited the room into the hallway, Fortune-Prior followed and placed both of his hands around the front of the victim’s neck and began strangling her. The victim’s legs began to give out as she experienced difficulty breathing and after Fortune-Prior let go she fell to the ground. Fortune-Prior then kicked the victim on the side of her abdomen multiple times. The victim exited the residence with her son, but after realizing that she had left her identification and credit cards behind, returned to retrieve them. Upon returning, Fortune-Prior confronted the victim again and began hitting her. The victim was holding their two-year-old son at the time and had to use her body to cover the child so that Fortune-Prior did not hit him. The victim sustained multiple visible injuries as a result of the assault.
Fortune-Prior faces a maximum penalty of 10 years in prison when sentenced on November 22. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Colonel Kirk B. Stabler, Commander of the Air Force Office of Special Investigations, made the announcement after U.S. Magistrate Judge Robert J. Krask accepted the plea. Special Assistant U.S. Attorney Kristen Taylor is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-63.
MS-13 Member Indicted for RICO ConspiracyRead the Press Release
BOSTON – An alleged member of the transnational criminal gang MS-13, or La Mara Salvatrucha, was arrested yesterday and charged in federal court in Boston with RICO conspiracy.
Manuel Adan Yanez Cruz, a/k/a “Rocky” or “Flaco,” 19, a Salvadoran national who had been residing in East Boston, was charged in an indictment unsealed yesterday with conspiracy to conduct enterprise affairs through a pattern of racketeering activity, commonly referred to as racketeering or RICO conspiracy. Yanez Cruz was in immigration custody at the time of his federal criminal arrest. Yanez Cruz was detained following an initial appearance in federal court in Boston yesterday.
As alleged in the indictment, MS-13 is a violent street gang with members in Massachusetts and across the United States. Members of MS-13 and their associates commit and conspire to commit acts of violence to enhance the gang’s prestige, control and expand the gang’s territory, keep others in fear of the gang, and ensure compliance with the gang’s rules. Until at least October 2018, Yanez Cruz allegedly conspired with other MS-13 members and associates to engage in criminal activity to support the criminal organization.
More than 50 MS-13 members and associates in Massachusetts have been convicted of multiple acts of violence, including murder, attempted murder, robbery, and assault, as well as other criminal activity, including narcotics trafficking, firearms possession, witness tampering, and witness retaliation.
The charge of RICO conspiracy provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The defendant also faces deportation upon completion of any sentence imposed. Sentences are imposed by a federal District Court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Gross; Chelsea Police Chief Brian A. Kyes; Lynn Police Chief Michael Mageary; and Revere Police Chief James Guido made the announcement today.
The details contained in the indictment are allegations and the defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lubbock Man Allegedly Plotting Mass Shooting Charged with Making False Statements to Firearms DealerRead the Press Release
A Lubbock man allegedly contemplating a mass shooting has been charged by criminal complaint with making false statements to a federally-licensed firearms dealer, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
The potential shooting has been averted.
William Patrick Williams, 19, was arrested by special agents of ATF and FBI Thursday, following a brief hospitalization. He made his initial appearance in court Friday morning.
According to a criminal complaint unsealed this afternoon, on July 13, Mr. Williams allegedly told his grandmother he had recently purchased an AK-47 rifle and planned to “shoot up” a local hotel and then commit suicide by cop. Sensing he was both homicidal and suicidal, she convinced him to allow her to bring him to a local hospital instead.
Mr. Williams later gave officers consent to search the room he’d rented at the hotel, where officers found an AK-47 rifle, seventeen magazines loaded with ammunition, multiple knives, a black trench coat, black tactical pants, a black t-shirt that read “Let ‘Em Come,” and black tactical gloves with the fingers cut off. Mr. Williams told officers he had laid out his weapons on the bed so that law enforcement could take custody of them.
Eight days later, ATF received the firearms transaction form (form 4473) that Williams had completed on July 11, when purchasing the AK-47. On the form, Mr. Williams listed his relatives’ address, where he no longer resided. Agents discovered that although Mr. William’s driver’s license showed the family members’ address, Mr. Williams was actually living with a roommate at a different address, following eviction by his relatives. He had allegedly misrepresented his current address on the firearms transaction form.
“This was a tragedy averted,” said U.S. Attorney Nealy Cox. “I want to praise the defendant’s grandmother, who saved lives by interrupting this plot, as well as the Lubbock police officers and federal agents who investigated his unlawful acquisition of a deadly weapon. If you suspect a friend or loved one is planning violence against themselves or others, do not hesitate to seek help immediately by calling law enforcement.”
“The safety of our citizens is paramount,” said Lubbock Interim Police Chief Jerry Brewer. “When events like this occur we greatly appreciate the cooperative relationships with our federal law enforcement partners that enhance our abilities to protect the community.”
“ATF is committed to preventing firearms violence. The ATF Dallas Field Division wants to thank our state, local and federal partners who cooperated in this investigation,” said ATF Assistant Special Agent in Charge of the Dallas Field Division Craig W. Saier.
“The FBI worked closely with our partners at the ATF and Lubbock Police Department to prevent the defendant from potentially committing a violent act,” said Matthew DeSarno, Special Agent in Charge of the Dallas Field Office. “This case is a perfect example of law enforcement agencies coming together to find a solution that protected the public from harm.”
A criminal complaint is a formal accusation of criminal conduct, not evidence, and Mr. Williams is innocent unless and until proven guilty in a court of law.
If convicted, the defendant faces up to five years in federal prison.
The Lubbock Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorneys Jeffrey Haag, NDTX’s West Texas Branch Chief, and Stephen Rancourt are prosecuting the case.
Lexington Man Sentenced to 80 Months for Armed Drug TraffickingRead the Press Release
LEXINGTON, Ky. — Dominique Jamar McCann, 24, of Lexington, was sentenced yesterday, to 80 months in federal prison, by United States District Judge Karen C. Caldwell, for possession with intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime.
In May 2018, officers with the Lexington Police Department, attempted to stop the vehicle being operated by Dominique McCann. McCann fled from the police at a high rate of speed and collided with another vehicle. McCann then fled on foot but was quickly apprehended. McCann was in possession of approximately one ounce of heroin and a Glock handgun. During his plea, McCann admitted to drug trafficking and possessing the firearm in furtherance of his drug trafficking.
Under federal law, Middlebrooks must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowrey, Special Agent in Charge of the ATF Louisville Field Division; and Lawrence Weathers, Chief of the Lexington Police Department, jointly made the announcement.
The ATF and the Lexington Police Department conducted the investigation. The United States was represented by Assistant United States Attorney Cynthia T. Rieker.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Leader of Large-Scale Lee County Drug Ring Pleads GuiltyRead the Press Release
Fort Myers, Florida – Tony Wilson, Jr. (31, Lehigh Acres) has pleaded guilty to conspiracy to distribute controlled substances, including cocaine base, fentanyl, heroin, and multiple firearms charges. Wilson faces a maximum penalty of life in federal prison. A sentencing date has not yet been set.
According to court documents, from 2013 through 2018, Wilson, known a/k/a “Big Homie” and “Caine,” was the head of a large-scale drug distribution ring operating in the Suncoast Estates neighborhood of North Fort Myers. The drug organization occupied several houses and trailer homes in the neighborhood, inside which dealers worked side-by-side to distribute controlled substances to customers.
During the investigation, law enforcement officers conducted dozens of undercover drug purchases from the dealers at the drug houses. They also executed multiple search warrants resulting in the seizure of tens of thousands of dollars in cash, multiple firearms, and large quantities of cocaine base, heroin, and fentanyl. Investigators believe that the organization often generated more than $10,000 per day in sales.
To date, eighteen members of the ring have been federally charged. Wilson is the fourteenth member to plead guilty.
The following is a list of individuals who have been charged in connection with this case:
Name Charge(s) StatusTony Wilson, Jr.
(31, Lehigh Acres)
Conspiracy to distribute controlled substances, distribution of controlled substances, and firearms offenses.
Pleaded guilty, faces up to life in federal prison.
Monique Moore
(47, North Fort Myers)
Conspiracy to distribute controlled substances.
Pleaded guilty, faces up to life in federal prison.
Patrick Graham
(25, Labelle)
Conspiracy to distribute controlled substances.
Pleaded guilty, faces up to 40 years in federal prison.
Michael Perez
(38, North Fort Myers)
Conspiracy to distribute controlled substances.
Pleaded guilty, faces up to 40 years in federal prison.
James Estrella
(50, North Fort Myers)
Conspiracy to distribute controlled substances.
Pleaded guilty, faces up to 40 years in federal prison.
Danielle Hallmon
(32, Pine Island)
Conspiracy to distribute controlled substances.
Pleaded guilty, faces up to 40 years in federal prison.
Dorothy Rochford
(27, North Fort Myers)
Conspiracy to distribute controlled substances.
Pleaded guilty, faces up to 40 years in federal prison.
Darniel Williams
(24, Labelle)
Conspiracy to distribute controlled substances.
Pleaded guilty, faces up to 40 years in federal prison.
Kenneth Tippins
(48, North Fort Myers)
Conspiracy to distribute controlled substances.
Pleaded guilty, faces up to 40 years in federal prison.
Eileen Smith
(22, Labelle)
Conspiracy to distribute controlled substances.
Pleaded guilty, faces up to 40 years in federal prison.
Malik Timbers
(26, St. Petersburg)
Conspiracy to distribute controlled substances.
Pleaded guilty, faces up to 40 years in federal prison.
Christopher Connor
(30, Labelle)
Conspiracy to distribute controlled substances.
Pleaded guilty, faces up to 20 years in federal prison.
William Thomas
(26, Labelle)
Conspiracy to distribute controlled substances and distribution of controlled substances.
Trial scheduled for August 19, 2019; he faces up to 40 years in federal prison.
Tyrome Wright
(46, North Fort Myers)
Conspiracy to distribute controlled substances and distribution of controlled substances.
Trial scheduled for August 19, 2019; he faces up to 40 years in federal prison.
Jeffrey Beard, II
(29, Labelle)
Conspiracy to distribute controlled substances and distribution of controlled substances.
Trial scheduled for August 19, 2019; he faces up to 40 years in federal prison.
Elizabeth Kuc
(47, North Fort Myers)
Conspiracy to distribute controlled substances and distribution of controlled substances.
Trial scheduled for August 19, 2019; she faces up to 40 years in federal prison.
Michelle Gladys
(49, North Fort Myers)
Possession with the intent to distribute a controlled substance.
Sentenced to 33 months in federal prison.
Samantha Badger
(23, North Fort Myers)
Possession with the intent to distribute a controlled substance.
Sentenced to 15 months in federal prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Michael Leeman and Trent Reichling.
Kent, Washington Dentists Plead Guilty to Tax FraudRead the Press Release
Two Kent, Washington dentists who conspired to avoid more than $460,000 in income taxes pleaded guilty today in U.S. District Court in Seattle to filing a false tax return, announced U.S. Attorney Brian T. Moran. MIKE HSIEH, 48, of Bellevue, Washington, and CHRISTINE CHEN 45, of Renton, Washington, own Comfort Family Dentistry Inc. Between 2007 and 2014, the two took steps to illegally hide their income from the IRS to reduce their tax obligation. U.S. District Judge Richard A. Jones scheduled sentencing for November 22, 2019.
According to records filed in the case, HSIEH and CHEN maintained two sets of financial statements for the business – one showing the actual expenses, and another showing inflated expenses. The fraudulent expense statements were given to their accountant for tax preparation. The pair also established a bank account that was not disclosed to the tax preparer. Patient fees deposited into the account were not reported as income. Finally, the pair took cash proceeds from the dental practice and never reported that income to the accountant or on their taxes.
For tax year 2013, HSIEH admits he reported a taxable income of $232,753, when it was really more than $100,000 higher. HSIEH should have paid taxes on income of $348,663. For tax year 2013, CHEN reported income of $319,131 when her true income was $425,679. For all the tax years between 2007 and 2014 they each admit failing to pay about $231,000 in taxes that they should have paid.
HSIEH and CHEN have agreed to make restitution of slightly more than $231,000 each to the U.S. and pay any additional tax, penalties and interest.
Filing a false tax return is punishable by up to three years in prison and a $250,000 fine.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case is being prosecuted by Assistant United States Attorney Matthew Diggs.
Jury Finds Memphis Man Guilty of Attempted Enticement and Traveling for Sex with a ChildRead the Press Release
LITTLE ROCK— A Memphis man has been convicted of traveling to Conway with plans to have sex with a 12-year-old girl and her mother, who turned out to be an undercover male police officer.
Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced that a federal jury found Michael Willins, 40, of Memphis, guilty of traveling with the purpose of having sex with a minor as well as attempting to entice a minor to engage in a sex act. In addition to making plans to have sex with the mother and child, Willins had asked the undercover officer to send nude photos of the hypothetical minor.
The jury returned their verdict Thursday evening after deliberating for less than an hour. United States District Judge Kristine Baker presided over the two-day trial, and Judge Baker will sentence Willins at a later date.
“This defendant not only had the desire to sexually abuse a child, but he also demonstrated his willingness to act on that depravity by driving three hours to follow through with his perverse plan,” stated U.S. Attorney Hiland. “This verdict shows that those who would prey upon children will be held accountable for their actions.”Testimony during the trial established that in October 2016, an undercover officer with the Faulkner County Sheriff’s Office responded to a Craigslist ad that claimed to be “looking for really taboo female.” The ad was posted by Michael Willins, who began communicating with the undercover officer, a male pretending to be a 33-year-old woman with a 12-year-old daughter. The two exchanged emails and messages in which Willins expressed his interest in having sex with the mother as well as the child.
On October 13, 2016, Willins left his workplace in Memphis, filled a prescription for one Cialis pill, and drove to an apartment complex in Conway, Arkansas. When he arrived at what he believed was the home of the mother and daughter, he was met by Faulkner County Sheriff’s deputies. They found condoms in Willins’ pocket and a strap-on sex toy in his car, which he had discussed using in messages with the undercover officer.
The statutory penalty for enticement of a minor is not less than 10 years imprisonment with a possibility of up to life imprisonment. The statutory penalty for travel with the intent to engage in illicit sexual conduct is not more than 30 years imprisonment. Both offenses of conviction include a penalty of not more than a $250,000 fine and not less than five years of supervised release.
The investigation was conducted by the Faulkner County Sheriff’s Office, and the case was prosecuted by Assistant United States Attorneys Kristin Bryant and Joan Shipley.
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Jury Finds Herkimer County Man Guilty of Receipt and Possession of Child PornographyRead the Press Release
BINGHAMTON, NEW YORK – On Thursday, August 1, 2019, after a four-day trial, a Binghamton jury found Daniel M. Passero, Jr., of Herkimer County, guilty of receiving and possessing child pornography, announced United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
The jury found that between July of 2015 and January 13, 2016 Passero downloaded hundreds of sexually explicit images of children, and saved them to a memory card that was later found in a smartphone recovered at Passero’s home.
At the time of the offense, Passero was on parole for a prior sex offense against a child. As a result, he faces a sentence of between 15 and 60 years imprisonment, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant was convicted of violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by United States Homeland Security Investigations, the New York State Department of Corrections and Community Supervision, and the New York State Police, with assistance from the Gloversville Police Department, Federal Bureau of Investigation, Burlington Police Department and Iowa Division of Criminal Investigations.
This case is being prosecuted by Assistant U.S. Attorneys Michael Perry and Kristen Grabowski, as a part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). 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 https://www.justice.gov/psc.
Jury Convicts Hampton Man of Drug Related MurderRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted a Hampton man today on charges of use of a firearm resulting in death, drug conspiracy, attempted possession with intent to distribute ecstacy, and felon in possession of a firearm and ammunition.
According to court records and evidence presented at trial, Damontaze M. Tillery, 24, arranged to trade a firearm for the drug MDMA, commonly called “ecstasy” which was to be provided by the victim. On July 26, 2018, the victim travelled from Virginia Beach to downtown Newport News to conduct the drug transaction with Tillery. The victim met Tillery at 19th Street and Ivy, and during the transaction Tillery murdered the victim. The victim was unarmed and still in possession of the quantity of ecstasy when he was found deceased in his vehicle with his foot on the gas causing the tires to spin until a bystander turned the vehicle off. An off-duty Newport News firefighter responded after seeing the smoke coming from the vehicle, and upon approaching the vehicle he realized the victim had a gunshot wound to the chest. The victim, Javon Stephenson, 31, was pronounced dead at the scene.
Tillery faces a maximum penalty of life in prison when sentenced on November 8. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Steve R. Drew, Chief of Newport News Police, made the announcement after U.S. District Judge Rebecca Beach Smith accepted the verdict. Assistant U.S. Attorney Lisa R. McKeel and Managing Assistant U.S. Attorney Howard J. Zlotnick are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-31.
Jacksonville Man Pleads Guilty to Distributing Child PornographyRead the Press Release
Jacksonville, Florida – Mark Wesley Schmit (50, Jacksonville) has pleaded guilty to distributing child pornography. He faces a minimum mandatory penalty of 5 years, and up to 20 years, in federal prison and a potential life term of supervised release.
According to court documents, during the course of the investigation of an unrelated child exploitation case, the FBI learned that an individual had exchanged a series of text messages with Schmit on July 24, 2017. During that conversation, the individual sent several pornographic videos to Schmit, claiming that they depicted his 13-year-old sister. In response, Schmit requested that the individual send him additional graphic sexual videos of the purported child. Schmit then sent an image to the individual depicting an adult male sexually assaulting a young girl.
On April 16, 2019, FBI agents arrested Schmit pursuant to a federal arrest warrant. During an interview, Schmit admitted to sending and receiving child pornography, and that he had a sexual interest in looking at images of underage girls. Schmit also admitted that he had engaged in online conversations with underage girls, while purporting to be a teenage boy, and solicited sexual images of the girls. Forensic analysis of Schmit’s cellphone revealed that it contained at least five images depicting the sexual abuse of young children.
This case was investigated by the Federal Bureau of Investigation (Jacksonville Office). It is being prosecuted by Assistant United States Attorney David B. Mesrobian.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States 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.usdoj.gov/psc.
Justice Department Reaches $3 Million Settlement with Nissan Motor Acceptance Corporation for Violating the Servicemembers Civil Relief ActRead the Press Release
WASHINGTON – The Department of Justice announced today that Nissan Motor Acceptance Corporation (Nissan MAC) has agreed to pay $3 million to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA). The suit alleges that Nissan MAC repossessed 113 vehicles owned by SCRA-protected servicemembers without first obtaining the required court orders, and failed to refund up-front capitalized cost reduction (CCR) amounts to servicemembers who lawfully terminated their motor vehicle leases early after receiving military orders. This settlement is the Justice Department’s 10th settlement with an auto finance provider since 2015 and exemplifies continued efforts to enforce the SCRA’s motor vehicle repossession and lease termination provisions.
“Men and women in uniform risk their lives to serve our country, and Congress enacted the Servicemembers Civil Relief Act to protect them when they serve our nation,” said Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division. “The U.S. Department of Justice will continue to enforce the Act vigorously in order to protect servicemembers and to ensure that all covered industries comply fully with the law.”
“The SCRA exists to offer protections to our military service members and to minimize undue financial burdens associated with deployments and other instances where our military servicemembers experience a profound and prolonged lifestyle change,” said U.S. Attorney Don Cochran, for the Middle District of Tennessee. “We will aggressively hold those institutions and businesses accountable who are required to comply with the Act. Our military deserves no less.”
The SCRA prohibits repossessing a motor vehicle from a servicemember during military service without a court order if the individual made a deposit or installment payment on the loan before entering military service. The SCRA also permits servicemembers to terminate motor vehicle leases early without penalty after entering military service or receiving qualifying military orders for a permanent change of station or to deploy. When servicemembers lawfully terminate motor vehicle leases, the SCRA requires that they be refunded all lease amounts paid in advance for a period after the effective date of the termination.
Nissan MAC is a Tennessee-based auto financing company that provides auto loans and leases for customers of Nissan and Infiniti.
Individuals who lease vehicles from Nissan MAC often contribute an up-front monetary amount at lease signing, in the form of a cash payment, credit for a trade-in vehicle, rebate, or other credit. A portion of this up-front amount can be applied to the first-month’s rent and certain up-front costs such as licensing and registration fees. The remainder, which is called the CCR amount, reduces the monthly payment the lessee must make over the term of the lease. The Department’s investigation revealed that when servicemembers terminated their motor vehicle leases early pursuant to the SCRA, Nissan MAC retained the entire CCR amount.
The agreement resolves a suit filed today by the Department of Justice in the United States District Court for the Middle District of Tennessee. It covers all repossessions of servicemembers’ vehicles and leases terminated by servicemembers since Jan. 1, 2008.
The agreement requires Nissan MAC to create a $2,937,971 settlement fund to compensate servicemembers whose rights were violated under the SCRA. Additionally, Nissan MAC must pay $62,029 to the United States Treasury.
The agreement also requires Nissan MAC to revise its policies and procedures to prevent future unlawful repossessions of servicemembers’ vehicles and ensure that servicemembers who terminate their auto leases early receive a full refund of all eligible pre-paid CCR amounts. NMAC must also provide training to its employees and representatives.
The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorneys’ Offices throughout the country. Since 2011, the Department of Justice has obtained over $474 million in monetary relief for over 120,000 servicemembers through its enforcement of the SCRA. The SCRA provides protections for servicemembers in areas such as evictions, rental agreements, security deposits, pre-paid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about the Department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on July 31 was:
Pete Isaac Smith Jr., III, 36, of Cut Bank, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Smith faces a maximum 20 years in prison, a $1 million fine and three years of supervised release. He was detained pending further proceedings. The case was investigated by the FBI, Glacier County Sheriff’s Office and Blackfeet Law Enforcement Services. Pacer case reference. 19-50.
If this case is of interest to your media organization and the community it serves, we encourage you to monitor its the progress 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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Illinois State Senator Indicted for Allegedly Fraudulently Receiving Salary and Benefits from Labor UnionRead the Press Release
CHICAGO — A federal grand jury in Chicago has indicted Illinois State Sen. THOMAS E. CULLERTON on embezzlement charges for allegedly fraudulently receiving salary and benefits from a labor union for which he did little or no work.
Cullerton, 49, of Villa Park, is charged with one count of conspiracy to embezzle from a labor union and employee benefit plans, 39 counts of embezzlement from a labor union, and one count of making false statements in a health care matter, according to an indictment returned Thursday in U.S. District Court in Chicago. Arraignment in federal court has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI; and Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago. The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu and Abigail Peluso.
According to the indictment, Cullerton was a member of Teamsters Local Union 734 prior to assuming office as an Illinois State Senator. After his election in November 2012, Cullerton was no longer an eligible participant in Local 734’s health and pension funds. In March 2013, while Cullerton was serving in the Illinois Senate, the president of Teamsters Joint Council 25 hired him as a purported union organizer. The full-time, salaried position included benefits from Local 734’s health and pension funds, due to an agreement Joint Council 25 entered into with Local 734 that same month, the indictment states.
The charges allege that for the next three years Cullerton did little or no work as an organizer. When Joint Council 25 supervisors requested that he perform his job duties, Cullerton routinely ignored them, the indictment states. From March 2013 to February 2016, Cullerton fraudulently obtained from Joint Council 25 and its members approximately $188,320 in salary, bonuses, and cellphone and vehicle allowances, as well as approximately $64,068 in health and pension contributions, according to the indictment. Cullerton used the proceeds of the payments to pay personal expenses, such as his mortgage, utilities and groceries, the charges allege.
The indictment alleges that Cullerton also fraudulently obtained approximately $21,678 in reimbursed medical claims from Local 734’s Health and Welfare Fund. Cullerton submitted or caused to be submitted to medical providers information that made it appear he was a “route salesman” for Local 734, the indictment states. The false information concealed and covered up the fact that Cullerton was not eligible for participation in the fund since he was not regularly scheduled to work at least 30 hours per week for Local 734, Joint Council 25, or any other employer that participated in the fund, according to the indictment.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charges in the indictment are each punishable by up to five years’ imprisonment. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Harry Keilholtz Sentenced to 240 Months on Methamphetamine Conspiracy and Firearm ChargesRead the Press Release
GREENEVILLE, Tenn. – On August 1, 2019, Harry Keilholtz, 54, of Stone Mountain, Georgia, was sentenced by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve 240 months in federal prison following convictions for his role in a conspiracy to distribute methamphetamine and for possessing firearms in furtherance of his drug trafficking.
According to his plea agreement on file with the U.S. District Court, Keilholtz was the out of state source of supply for this particular methamphetamine conspiracy operating in the Eastern District of Tennessee. A federal search warrant was executed at Keilholtz’s residence in Stone Mountain, Georgia, on February 12, 2016. Numerous customers/co-conspirators were present at the time the warrant was executed. Keilholtz attempted to flee but was apprehended in the back yard. A search of the residence revealed over one kilogram of methamphetamine, a loaded AK-47 rifle, ammunition, and scales. A loaded 9mm pistol was found on Keilholtz’s person.
A few weeks after the execution of the search warrant, Keilholtz became a fugitive. Approximately 30 months later, in November 2018, Keilholtz was finally located and arrested in Panama City, Florida. During the sentencing hearing, an obstruction of justice enhancement was applied to Keilholtz’s sentence due to his fugitive status for about two and half years. In upholding the obstruction of justice enhancement, U.S. District Court Judge R. Leon Jordan noted that Keilholtz had been living under an alias name, had lived in multiple cities during the time of his flight, had identification in someone else’s name, was driving a vehicle registered to someone else, and was living in a recreational vehicle registered to someone else.
Law enforcement agencies participating in the investigation included the Federal Bureau of Investigation (FBI), Hamblen County Sheriff’s Office, Morristown, Tennessee Police Department, and the Third and Fourth District Judicial Drug Task Forces. Assistant U.S. Attorney Wayne Taylor represented the United States.
This case was 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.
Han Gil Hotel Owner Pleads Guilty to Maintaining Drug-Involved PremisesRead the Press Release
Han Gil hotel owner Su Amos Mun pleaded guilty today to maintaining a drug-involved premises, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
In plea papers, Mr. Mun, 65, admitted that for more than a year, he charged drug dealers an inflated daily rate, or “drug tax,” that allowed them to openly sell quantities of heroin, methamphetamine, cocaine and other drugs from inside his hotel rooms.
He further admitted that despite being notified of two separate heroin overdose deaths that occurred inside the hotel, Mr. Mun continued to allow dealers to sell illegal drugs to customers from Han Gil Hotel rooms, often arming himself with a firearm. Mr. Mun also admitted that many of the drug dealers operating out of his hotel were armed with handguns and long guns.
As part of his plea agreement, Mr. Mun agreed to forfeit the Han Gil hotel, which is also the subject of a civil action filed by the U.S. Attorney’s Office alleging the site functioned as a “safe haven for drug distributors” and a “breeding ground for escalating criminal activity.”
The hotel has been shuttered since March 8, when a federal judge granted prosecutors’ motion for a restraining order prohibiting the hotel’s further operation. The establishment, located less than 1000 feet from Dallas’ Herbert Marcus Elementary, had seen multiple deaths, shootings, and drug-related incidents over the eight months prior to the restraining order.
To date, eight criminal defendants in the Han Gil case have pleaded guilty, including Eric Dewayne Freeman, aka “Stuff,” the lead defendant in the case. The 44-year-old Freeman – who could be seen on surveillance video peddling drugs and committing acts of violence from inside the Han Gil – corroborated Mr. Mun’s knowledge of dealers’ illegal activities in his plea papers.
“The Defendant’s plea not only documents his criminal culpability, but also describes how he brazenly facilitated and profited from the criminal conduct by dangerous individuals operating out of his hotel,” U.S. Attorney Nealy Cox said of Mr. Mun. “The Defendant’s business directly impacted the safety of this community and his conviction allows us to permanently rid the neighborhood of this horrible place. I want to thank all the law enforcement personnel that worked together innovatively to bring about this great result. Let this case serve as a warning to other business owners that operate similar establishments – we will not allow those who profit off the dangerous and illegal activity of others to hide in the shadows.”
Mr. Mun now faces up to 20 years in federal prison. His sentencing is scheduled for December 19.
The Drug Enforcement Administration conducted the investigation with assistance from the Federal Bureau of Investigation, Coppell Police Department, Dallas Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the U.S. Marshal’s Service, Grand Prairie Police Department, Arlington Police Department, Grapevine Police Department, Lancaster Police Department, the State Department, IRS, U.S. Postal Inspection Service, Plano Police Department, Farmers Branch Police Department, Homeland Security Investigations, Garland Police Department, Rowlett Police Department, Denton Police Department, Lewisville Police Department and McKinney Police Department. Assistant U.S. Attorneys Rick Calvert, Chief of NDTX’s Narcotics Section, and Phelesa Guy, Deputy Chief of the Narcotics Section, are prosecuting the criminal case. Assistant U.S. Attorney Lindsey Beran, NDTX Opioids Coordinator, is handling the civil case.
Georgia Man Sentenced for $6.5 Million Health Care Fraud, Money Laundering Involving Tricare, Other VictimsRead the Press Release
PENSACOLA, FLORIDA – Michael Scott Burton, 52, of Decatur, Georgia, was sentenced to 96 months in federal prison yesterday after he pleaded guilty to charges of conspiracy to commit health care fraud and wire fraud, conspiracy to commit money laundering, and money laundering. The sentence was announced today by Lawrence Keefe, United States Attorney for the Northern District of Florida.
Between January 2014 and December 2015, Burton conspired with others to defraud TRICARE and other insurance companies out of more than $6.5 million in fraudulent claims for prescriptions for compounded pain cream, scar cream, and wellness capsules. Burton agreed that co-defendant Brad T. Hodgson would forge prescriptions for compounded drugs for individuals who Burton knew were not patients of the Georgia doctor’s practice where Hodgson worked. Burton recruited sales representatives, including co-defendants Bradley D. Pounds and Heather E. Pounds, to obtain and provide Burton with the personal identifying information and insurance cards of individuals for whom the prescriptions could be issued in exchange for commission payments. Burton would forward that information to Hodgson, who would issue the prescriptions – even though he was not licensed to write prescriptions – and send them to Physician Specialty Pharmacy in Pensacola without the individuals ever seeing or speaking with a doctor. Burton also recruited co-defendant Marie Ann Smith to assist Hodgson with processing and submitting prescriptions. Physician Specialty Pharmacy then caused TRICARE and other insurance companies to be billed and paid Burton a 50% commission for each compounded drug prescription that was paid by insurance. By this conduct, Burton earned over $1.4 million in commissions from fraudulent prescriptions.
"Health care fraud is a crime that affects all Americans – but to perpetrate a scam that victimizes a program for our nation’s service members and their families is beyond appalling," Keefe said. "This conspiracy stole money meant to help those who have given so much to our nation, and the criminals behind it deserve the punishment they receive."
"The wide-spread corruption uncovered in this complex and multistate fraud scheme wasted millions of American taxpayer dollars, and furthermore, deprived U.S. military members and their families of legitimate prescription medications and other needed medical care," said Cynthia A. Bruce, Special Agent in Charge, DCIS-Southeast Field Office. "DCIS is committed to working with our investigative partners and the U.S. Attorney's Office to identify, investigate and bringing to justice anyone who defrauds the DoD and the American taxpayer."
For his role in the scheme, Burton was sentenced to 96 months in prison. He was also ordered to pay $$6,540,348.48 in restitution to TRICARE and pay a forfeiture money judgment of $1,480,931.74. In February, Bradley Pounds was sentenced to 21 months in prison, and Smith and Heather Pounds were sentenced to probation. In separate related cases, Hodgson is awaiting sentencing after pleading guilty, and Andrew E. Fisher, the president and part-owner of Physician Specialty Pharmacy, is awaiting trial scheduled for September 3rd.
"Crimes like this increase the costs we all pay for healthcare and prescription drugs," said FDLE Commissioner Rick Swearingen. "I thank our FDLE Pensacola office for spearheading this complex investigation and our U.S. Attorney’s Office for prosecuting this case."
Assistant United States Attorney Alicia H. Forbes prosecuted these cases following an investigation by the Federal Bureau of Investigation, Defense Criminal Investigative Service, Florida Department of Law Enforcement, Florida Department of Financial Services-Bureau of Insurance Fraud, Florida Department of Health, Naval Criminal Investigative Service, and Army Criminal Investigative Command.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit https://www.justice.gov/usao-ndfl
Georgia Man Convicted of Conspiring to Distribute MethamphetamineRead the Press Release
Ocala, Florida – A federal jury today found Eric Pedro Valdez (39, Atlanta) guilty of conspiracy to distribute 500 grams or more of methamphetamine. He faces a minimum mandatory penalty of 10 years, and up to life, in federal prison. Valdez was indicted on October 11, 2017.
According to testimony and evidence presented at trial, between November 2015 and May 2016, Valdez conspired with others to distribute more than 70 kilograms of methamphetamine. On March 23, 2016, Valdez hand-delivered 4 kilograms of methamphetamine to two co-conspirators at a business in the Atlanta- area. The methamphetamine was intended for distribution in Sumter County.
This case was investigated by the Drug Enforcement Administration and the Sumter County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney William S. Hamilton.
Former State Employee Charged with Mail Fraud, Identity Theft and Theft of FundsRead the Press Release
LEXINGTON, Ky. – A Federal grand jury sitting in Lexington has indicted a former employee of the Kentucky Commission (now Office) for Children With Special Health Care Needs, on charges arising from allegations of theft from that agency. Diana Baker, 53, of Louisville, was charged with one count of mail fraud, one count of aggravated identity theft, and four counts of theft from the state agency.
Baker was a 28-year employee of the Commission, which is an agency within the Kentucky Cabinet for Health and Family Services that assists families with children with special health care needs in obtaining funding and care. The indictment alleges that between 2007 and 2018, Baker, who was an Administrative Branch Manager in the Louisville office, manipulated software programs, to generate fraudulent payment vouchers, which purported to reimburse the families of special needs children for out of pocket expenses or pay third party vendors for services to children. These vouchers were sent in the regular course of business to the Kentucky State Treasurer’s Office, which issued checks that were actually used to make payments on Baker’s credit card accounts, to pay doctors and dentists for services to Baker’s family, and, in one instance, to pay a carpenter for work on a dock for lakefront property owned by Baker. The amount of the alleged theft is approximately $45,000.
The investigation leading to the indictment was conducted by the Kentucky Cabinet for Health and Family Services, Office of the Inspector General and the FBI.
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.
Former Ohio County Magistrate sentenced to prison for tax fraudRead the Press Release
WHEELING, WEST VIRGINIA – Former Ohio County Magistrate Harry A. Radcliffe, III, was sentenced today to four months incarceration to be followed by two months of home confinement for tax fraud, United States Attorney Bill Powell announced.
“Defendants are not treated differently because they are elected officials. In fact, elected officials know better than most people about the rule of law. We have done our duty and the court has now imposed its sentence. We will continue to investigate violations of the public trust,” said Powell.
Radcliffe, age 61, pled guilty to one count of “Conspiracy to Impede the Internal Revenue Service” in April 2019. In tax years 2013, 2014, and 2015, Radcliffe accepted a total of approximately $22,000 in cash payments from William W. Seelbach, then owner of W&S Bail Bonding d/b/a A Bail Bonding by ABC (“ABC”), which payments were offered by Mr. Seelbach as bribes. These payments were made and received in cash, at least in part, in an effort to impede the Internal Revenue Service in the collection of income taxes. Radcliffe willfully failed to report this income to the Internal Revenue Service, resulting in a total tax loss of $5,500.00. He also failed to report this extra-judicial income to the Supreme Court of Appeals of West Virginia.
Radcliffe was ordered to pay $5,500 in restitution to the Internal Revenue Service.
Assistant U.S. Attorneys Jarod J. Douglas and Shawn M. Adkins prosecuted the case on behalf of the government. The Federal Bureau of Investigation, the Internal Revenue Service, the West Virginia Commission on Special Investigations, and the West Virginia State Police investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.Former Narcotics Supervisor Sentenced for Stealing Drug Evidence for his Personal UseRead the Press Release
A former narcotics supervisor from the Mayes County Sheriff’s Office was sentenced Friday for stealing methamphetamine that had been seized as evidence during multiple law enforcement investigations, announced U.S. Attorney Trent Shores.
U.S. District Judge Gregory K. Frizzell sentenced Brett Alan Mull, 48, of Pryor, to six months in federal prison followed by six months home detention for tampering with or destruction of evidence and for acquiring methamphetamine through deception. Following imprisonment, Mull will serve two years on supervised release. Mull pleaded guilty to the felony charges on April 3, 2019.
The defendant used his position as a supervisor of the Criminal Interdiction Unit to gain access to methamphetamine in order to support his addiction. In 2017, Mull began removing OSBI evidence submittal envelopes containing the illicit drug before the evidence was booked into the property room. On July 3, 2018, investigators discovered altered evidence submittal envelopes, drug paraphernalia, and methamphetamine during searches of Mull’s residence and workplace.
“There is a social contract between the public and the police that is built on mutual trust, respect and accountability. Brett Mull violated that contract, and for that, there must be consequences,” said U.S. Attorney Shores. “Mull fell into the clutches of addiction and then repeatedly broke the law. He altered evidence. He confiscated methamphetamine from suspects and then used that same meth to get high. Today, he faced the consequences for his actions. I am proud of the integrity of the entire prosecution team to bring these offenses to light and pursue justice.”
The FBI and investigators from Mayes County District Attorney Matt Ballard’s Office conducted the investigation. Assistant U.S. Attorney Ryan M. Roberts prosecuted the case.
Former Honduran Drug Trafficker Sentenced to Life in Prison for Distributing over 150 Tons of Controlled SubstancesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Michael Machak, Acting Special Agent in Charge of the Drug Enforcement Administration’s Special Operations Division, announced today that HECTOR EMILIO FERNANDEZ ROSA, a/k/a “Don H,” was sentenced to life in prison for conspiring to distribute and possess with intent to distribute controlled substances. FERNANDEZ ROSA made approximately $50 million in connection with the distribution of 135 tons of cocaine and 20 tons of methamphetamine precursor chemicals, which he was ordered to forfeit in connection with sentencing. FERNANDEZ ROSA was provisionally arrested in Honduras in October 2014, and extradited to the United States in September 2015. FERNANDEZ ROSA previously pled guilty before U.S. Circuit Judge Richard J. Sullivan, who imposed today’s sentence while sitting by designation.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Hector Emilio Fernandez Rosa, operating with impunity in Honduras, trafficked more than 135 tons of cocaine to the United States over the course of 17 years. By paying millions of dollars in bribes to Honduran officials, including the former president, he ensured safe passage of his drugs to the U.S. He also protected his trafficking organization by eliminating his rivals, murdering 19 people, including Honduran Congressman Mario Fernando Hernández Bonilla in 2008. Today, one of the most prolific and violent drug traffickers has been brought to justice.”
Acting Special Agent in Charge Michael Machak said: “Bringing to justice and putting behind bars individuals like Fernandez Rosa not only makes our country safer, but keeps enormous quantities of dangerous drugs off our streets. This should serve as a message that DEA will not tolerate and will prosecute dangerous drug traffickers that wreak havoc on our country.”
According to court filings and statements made during court proceedings:
In approximately 1998, FERNANDEZ ROSA started to participate in drug trafficking in Honduras with a cell of traffickers distributing approximately five tons of cocaine per year. By 2003, FERNANDEZ ROSA assumed a management position in the group, which increased the volume of cocaine it was distributing to approximately 10 tons per year until at least 2013. FERNANDEZ ROSA coordinated the payment of large bribes to members of the Honduran National Police and at least one Honduran military official who helped escort and assure safe passage of large drug shipments. For example, in approximately 2005, FERNANDEZ ROSA and other co-conspirators paid a Honduran presidential candidate more than $2 million in narcotics proceeds in an effort to install one of FERNANDEZ ROSA’s allies as the Vice Minister of Security in Honduras. The candidate prevailed in the election, but did not follow through on his promise to FERNANDEZ ROSA. During the same period, FERNANDEZ ROSA and other co-conspirators spent approximately $100,000 on bribes to law enforcement in connection with each of their drug shipments.
Between 2008 and 2010, FERNANDEZ ROSA diversified his operations by working to receive approximately 20 tons of ephedrine at Puerto Cortés, which is the biggest commercial port in Honduras. In connection with this scheme, FERNDNEZ ROSA worked with key lieutenants of Joaquin El Chapo Guzman, a/k/a “El Chapo,” to help the Sinaloa Cartel manufacture large quantities of methamphetamine in Honduras and Guatemala, which was then transported north over land, like the cocaine, and imported into the United States.
In November 2008, following a seizure of related ephedrine in France, FERNANDEZ ROSA ordered the murder of Honduran Congressman Mario Fernando Hernández Bonilla. The assassination was one of 19 murders that FERNANDEZ ROSA ordered or carried out. In 2003, for example, FERNANDEZ ROSA directed his drug trafficking workers to kidnap a man who worked for a rival trafficker. After the victim was kidnapped, FERNANDEZ ROSA’s workers tortured him and, as FERNANDEZ ROSA watched, placed him in a recently dug grave while he was still alive. FERNANDEZ ROSA and his workers than executed the victim. In 2013, FERNANDEZ ROSA deployed an assassin to murder someone FERNANDEZ ROSA suspected had helped kill a relative, and the assassin coordinated a large attack that resulted in killing FERNANDEZ ROSA’s target and approximately nine additional victims.
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In addition to the prison term, FERNANDEZ ROSA, 46, of Honduras, was also sentenced to five years of supervised release and ordered to pay forfeiture in the amount of $50,000,000.
Mr. Berman praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit, New York Strike Force, and Tegucigalpa Country Office, as well as the U.S. Department of Justice’s Office of International Affairs.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III and Matthew J. Laroche are in charge of the prosecution.
Former Controller for Westmoreland County Packaging Company Charged with Embezzling $191,000Read the Press Release
PITTSBURGH – The former Controller for a packaging company located in Export, PA, has been indicted by a federal grand jury in Pittsburgh on charges of wire fraud, United States Attorney Scott W. Brady announced today.
The eight-count Indictment, returned on July 30 and unsealed Aug. 1 following her arrest, named Victoria Mazur, 51, of 265 McKim Drive, Pittsburgh, PA (Plum Boro), as the sole defendant.
According to the Indictment presented to the court, from approximately December 2012 until December 2017, Mazur embezzled funds from her employer, Gateway Packaging Corporation, by processing fraudulent refunds through the employer’s point of sale terminal, which is used to process credit and debit card transactions for customers. The Indictment further alleges that the total amount embezzled was approximately $191,000.
The law provides for a maximum total sentence of 20 years for each count of wire fraud. The law also provides for a fine of $250,000 for each count of wire fraud. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
U.S. Immigration and Customs Enforcement, Homeland Security Investigations and the United States Postal Inspection Service conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Collin County Resident Sentenced for Metroplex Wire Fraud SchemeRead the Press Release
PLANO, Texas – A 52-year-old Aurora, CO man has been sentenced to federal prison for a wire fraud scheme in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown and FBI Special Agent in Charge Matthew D. DeSarno.
John Russell Scrivner pleaded guilty on Feb. 8, 2019, to wire fraud and was sentenced to 41 months in federal prison today by U.S. District Judge Marcia A. Crone. Scrivner was also ordered to pay restitution in the amount of $341,981 to a victim of the wire fraud scheme.
According to information presented in court, from July 2013 to March 2016, Scrivner, a former resident of McKinney, Texas, was employed as the General Manager of a Texas company, Steel Fabrication Services, when he devised and executed a scheme to defraud the company of funds and property. The FBI’s investigation showed that Scrivner diverted company funds to a bank account he controlled, used money to pay expenses to set up a separate business he controlled, and used the company money to pay for personal expenses. Scrivner was indicted by a federal grand jury on Oct. 9, 2018.
“This was greed, pure and simple,” said U.S. Attorney of the Eastern District of Texas. “Employers have to put trust in their managers, but it leaves them at risk for these types of frauds. Companies need checks and balances in place to prevent this from happening to them.”
“The defendant used his position of trust to deceive and defraud his employer,” said Matthew DeSarno, Special Agent in Charge of the FBI Dallas Field Office. “The FBI does not tolerate acts of corporate fraud and will pursue individuals who use their access to profit financially.”
This case was investigated by the Federal Bureau of Investigation’s Dallas Field Office and prosecuted by Assistant U.S. Attorney Tom Gibson.
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