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21 June 2019
Manhattan U.S. Attorney Announces Return to Polish Government of Stolen Architectural Drawings of Historic SynagogueRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Angel M. Melendez, Special Agent-in-Charge of the New York Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced today that five stolen architectural drawings created in 1896 of a historic synagogue in the city of Lodz, Poland (the “Drawings”), will be returned to the Polish government. The Drawings were taken out of a larger set housed at the Polish state archive in Lodz in around 1999, and the identity of the thief or thieves remains unknown.
U.S. Attorney Geoffrey S. Berman said: “A part of Poland’s cultural heritage and historical record were stolen from their state archive 20 years ago. Now, thanks to a New York couple who are doing the right thing, and to HSI for doing its typically excellent work in this field, these important drawings are being returned to the government of Poland.”
HSI Special Agent-in-Charge Angel M. Melendez said: “On the heels of the 75th anniversary of D-Day, returning these drawings to Poland that represent a piece of human history the Nazis attempted to erase underscores the importance of preserving our world history through cultural patrimony for future generations. We continue to pursue criminals who steal and traffic property that belongs to the peoples of the world, while returning those items found to their rightful owners, in this case, Poland.”
The ink-and-watercolor Drawings depict the interior, exterior facades, and floor plans of the Stara Synagogue, which used to stand on Wolborska Street in Lodz. The Stara Synagogue was originally built in 1809 and moved to a new building around 1859 and 1861. The Drawings were made by the prominent Lodz architect Adolf Zeligson in connection with significant renovations to the synagogue that began in around 1897. The Stara Synagogue was later burned down during the Nazi occupation in around 1939, and no trace remains.
Almost 10 years after the theft, the Drawings were put up for sale by an international auction house and were purchased by a Manhattan couple, Meredith Berkman and Daniel Mintz. After Ms. Berkman and Mr. Mintz were informed that the Drawings had been stolen from the Polish state archive, they readily and voluntarily agreed to turn over the Drawings to HSI so that they could be returned to Poland.
The U.S. Attorney’s Office and HSI are now sending the Drawings back to the Polish government.
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Mr. Berman thanked HSI’s Cultural Property, Art, and Antiquities Group for their handling of the investigation. He also thanked Ms. Berkman and Mr. Mintz for their assistance and cooperation. The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorney David Zhou is in charge of the case.
Madison County Pill Mill Doctor Pleads Guilty to Illegally Dispensing Prescription DrugsRead the Press Release
BIRMINGHAM – A Madison County physician pleaded guilty Wednesday in federal court to charges related to illegally distributing and dispensing prescription drugs, announced U.S. Attorney Jay E. Town and Drug Enforcement Administration Assistant Special Agent in Charge Clay Morris.
DR. RODNEY MORRIS, 64, pleaded guilty before U.S. District Court Judge Annemarie Carney Axon to sixty-four counts of illegally distributing and dispensing Schedule II controlled substances, including opioid painkillers, outside the scope of professional medical practice and not for legitimate medical purposes. Instead, the evidence shows that Dr. Morris prescribed these painkillers in exchange for sexual favors and monetary gain. He is scheduled for sentencing on October 23, 2019.
“The public should be able to trust that a medical professional would not engage in such aberrant and disgusting conduct,” Town said. “Those who choose to engage in such illicit practices will no longer wear white coats, but instead prison stripes.”
“Unfortunately, Dr. Morris and his criminal conduct represents a disturbing trend in the medical profession for those practitioners who abandon their hypotactic oath,” DEA ASAC Clay Morris said. “Dr. Morris’ actions clearly contributed to continuing the opioid epidemic that is plaguing our communities and country. He will soon be where he belongs…in prison. The DEA, U.S. Attorney’s Office and our law enforcement partners will not stand idly by and allow criminals to profit off of the addictions of others.”
Dr. Morris was known to give preferential treatment to female patients when it came to office visits, drug testing (or lack of thereof), and prescriptions of controlled substances. Records show that between August 2012 and May 2017, Dr. Morris illegally prescribed one particular patient hydrocodone, alprazolam, oxycodone and tramadol in exchange of sexual favors. This patient illegally sold some of these drugs to supplement her income. After the patient’s death in May 2017, Dr. Morris attempted to delete electronic medical records and erase evidence of her being his patient.
According to the Alabama Prescription Drug Monitoring Program, Dr. Morris ranked 67 out of 13,118 medical doctors in the State of Alabama for the number of prescriptions filled for Schedule II, III, IV and V controlled substances. He also ranked seventh in Madison County for the quantity of controlled substances prescribed. From January 1, 2017 through June 27, 2017, Dr. Morris wrote 6,721 prescriptions for controlled substances with the total dosage units being 499,784.
The penalty for illegally dispensing and distributing prescription drugs is a maximum of 20 years in prison and a maximum fine of $1,000,000.
DEA investigated the case, which Assistant U.S Attorney Mary Stuart Burrell is prosecuting.
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Man from Minnesota Charged in New Mexico Federal Court with False Personation of an Officer or Employee of the United StatesRead the Press Release
ALBUQUERQUE – James Christopher Benvie, 44, of Albany, Minn., appeared in federal court today for an initial appearance on an indictment returned by a grand jury in New Mexico charging him with two counts of false personation of an officer or employee of the United States.
The grand jury returned the indictment on Wednesday alleging Benvie committed these offenses in Doña Ana County on April 15, 2019 and April 17, 2019. Benvie made his initial appearance today in the United States District Court for the Western District of Oklahoma after the FBI with the assistance of the Logan County Sheriff’s Office arrested him in Guthrie, Okla. He is scheduled for a detention hearing on Tuesday afternoon and will be transported to the District of New Mexico for prosecution.
Benvie faces up to 3 years in prison if convicted. An indictment is only an accusation. A defendant is presumed innocent until proven guilty.
The FBI investigated this case. Assistant U.S. Attorneys Renee L. Camacho and Randy Castellano of the Las Cruces Branch Office are prosecuting the case.
Man from Dulce, N.m., Charged with Assault Causing Serious Bodily Injury in Indian CountryRead the Press Release
ALBUQUERQUE – Ronnie Tiznado, 46, of Dulce, N.M., appeared in federal court on Wednesday on charges of assaulting his wife on the Jicarilla Apache Nation Indian Reservation.
Tiznado is charged by criminal complaint with assault resulting in serious bodily injury and assault of a spouse by strangling, suffocating, or attempting to strangle or suffocate. According to the complaint, Tiznado sent threatening text messages to his wife while she was working at a store on June 1, 2019. In these text messages, Tiznado threatened to kill the victim and beat her to death. Early the next morning, Tiznado located her at Stone Lake, a community near Dulce, N.M. Tiznado pulled her from her car by the hair and hit, kicked, and choked her. The victim suffered a broken nose and severe bleeding and swelling to her face with one of her eyes swollen shut. She also suffered bruises, scratches, and redness on her neck, arms, ribs, back, and chest, all requiring treatment at a hospital in Farmington.
Tiznado is currently out of custody awaiting trial. He faces up to 10 years in prison if convicted of these offenses. A criminal complaint is only an accusation. A defendant is presumed innocent until proven guilty.
The Farmington office of the FBI investigated this case. Assistant U.S. Attorney Frederick T. Mendenhall III is prosecuting the case.
Low-Income Housing Developer Sentenced to Prison for Creating a False Pass-Through Company in Scheme to Defraud Lenders and USDARead the Press Release
DES MOINES, Iowa —On June 19, 2019, Jeffrey W. Voorhees, age 75, of Waukee, Iowa, was sentenced by United States Southern District of Iowa Senior Judge Robert W. Pratt to two years in federal prison, announced United States Attorney Marc Krickbaum. Voorhees pleaded guilty on November 1, 2018, to one count of wire fraud affecting a financial institution. Voorhees was ordered to pay $416,440 in restitution and a fine of $25,000.
During the sentencing hearing, Judge Pratt stated the defendant conducted a “sophisticated, long-running device or scheme.” According to court documents, Voorhees, acting through his own consulting company and what he purported to be a not-for-profit entity called National Affordable Housing Foundation, purchased and rehabilitated seven properties which together formed what was referred to as Candleridge VII. The properties were rehabilitated with a private bank loan, guaranteed by the United States Department of Agriculture in the event of default. Voorhees artificially inflated construction costs and created a pass-through shell company in order to obtain approximately $359,000 in artificially inflated loan proceeds. The loan proceeds were to be repaid using USDA-subsidized tenant rents.
The purpose of the USDA loan programs that the defendant defrauded is to support the development of rental units in rural areas for low- and moderate-income individuals and families. USDA regulates how the loan proceeds can be spent, and also imposes requirements on the borrowers to disclose any identity of interest relationships. According to court records, Voorhees was an expert in these regulations but did not follow them in order to unlawfully profit from the USDA loan programs.
The United States Department of Agriculture - Office of Inspector General investigated this matter. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Louisiana Teacher Sentenced to 135 Months in Prison for Child EnticementRead the Press Release
BOSTON - A Louisiana teacher was sentenced today in federal court in Boston for child enticement related offenses.
Logan Procell, 25, was sentenced by U.S. District Court Judge Denise J. Casper to 135 months in prison and five years of supervised release. In February 2019, Procell pleaded guilty to one count of coercion and enticement of a minor and one count of transfer of obscene material to a minor. Procell was indicted in October 2017 and has been in custody since.
Procell first contacted an 11-year-old Massachusetts girl via Snapchat after seeing her on a different online application that allows users to publish videos in real time. After obtaining her phone number, Procell began communicating with her by text. The child’s parent discovered approximately one month’s worth of their communications in September 2017. The exchange of more than 1600 messages contained sexually explicit images and messages sent by Procell to the child, including pictures of his genitals, requests for her to send him pornographic images of herself, and discussions about meeting her to have sex. At the time of the offense, Procell was a chemistry teacher at a high school in Noble, La.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today. Valuable assistance was provided by the Louisiana State Police and the Waltham Police Department. Assistant U.S. Attorneys Anne Paruti and Mackenzie Queenin prosecuted the case.
The case was 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/.
Louisiana Couple and Their Business Plead Guilty to Operating Sham Medical Reimbursement Account Program That Defrauded the IRS and Program Participants Out of over $48 MillionRead the Press Release
WASHINGTON – A Covington, Louisiana, couple and their company pleaded guilty for their roles in a scheme to create, market and operate a fraudulent medical reimbursement program that defrauded the IRS and program participants out of over $48 million.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana, Special Agent in Charge Thomas J. Holloman of the Internal Revenue Service Criminal Investigation’s (IRS-CI) Atlanta Field Office, Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office, Special Agent in Charge Steve Grell of the U.S. Department of Labor, Office of Inspector General’s (DOL-OIG) Dallas Regional Office and Regional Director James Purcell of the U.S. Department of Labor, Employee Benefits Security Administration’s Kansas City Regional Office made the announcement.
Denis Joachim, 53, pleaded guilty to one count of conspiracy to commit money laundering; Donna Joachim, 52, pleaded guilty to one count of conspiracy to defraud the United States; and The Total Financial Group, Inc. (TTFG) pleaded guilty to one count of conspiracy to make false statements and representations in connection with a multiple employer welfare arrangement and five counts of making false statements and representations in connection with a multiple employer welfare arrangement. All the pleas took place before U.S. District Judge Carl J. Barbier of the Eastern District of Louisiana on May 30, 2019, and were unsealed yesterday. Sentencings have been scheduled for Sept. 5, 2019, before Judge Barbier. As part of their guilty pleas, the defendants have agreed to forfeit assets previously seized with a collective value of approximately $6.3 million. Additionally, the defendants acknowledged a potential loss to the victims totaling more than $48 million and agreed to repay restitution for the amount of loss.
According to admissions made as part of the guilty pleas, TTFG was a Louisiana business incorporated by Denis Joachim and Donna Joachim with the Louisiana Secretary of State that was most recently located at 406 N. Florida Street in Covington. TTFG and its owners created and marketed a medical reimbursement account program called “Classic 105,” which operated from about 2012 until January 2017. Classic 105 claimed to be a multiple employer welfare arrangement that was marketed to employers as a supplemental benefits plan for their employees to reimburse for medical expenses such as co-pays and deductibles; participants in Classic 105 were required to have a primary health insurance plan unrelated to and in addition to Classic 105.
According to the defendants’ admissions, Classic 105 claimed to be comprised of several components: a tax-exempt contribution of between $1,000 and $1,600 per month made by an employee (which reduced the employee’s taxable income), a loan from a financial institution back to the employee to make up for the contribution, an insurance policy payable to the lender at the employee’s death to repay the loan and fees paid by the employee and the employer directly to TTFG. TTFG told prospective employer-clients that participants would never have to make out-of-pocket payments to repay the loan and that as a result of the tax savings, most participants would receive an increase in their net take home pay. TTFG also told prospective employer-clients that the contributions would be stored in a unique account for each employee-participant and that any money not used by the end of each calendar year would revert to TTFG. TTFG also charged employee-participants a fee of between $150 and $250 per month and the employer a fee of five percent of each employee’s contribution amount. At its peak, over 350 employer-clients and 4,400 employee-participants nationwide were enrolled in TTFG’s Classic 105 program. In total, TTFG took in not less than at least $25,543,340.70 in fees from the employer-clients and employee-participants, the defendants admitted.
According to the defendants’ admissions, TTFG never obtained a single loan or insurance policy for the Classic 105 program, and participants never made any actual contributions. Rather, TTFG arranged for the contribution, loan and insurance policy to appear as a series of “paper transactions” that, in effect, did nothing more than reduce participants’ taxable wages and employers’ FICA payments improperly, without their knowledge of the impropriety. Consequently, TTFG and the Joachims admittedly caused the underpayment of at least $23,343,442.70 in federal FICA taxes, as well as the underreporting and underpayment of personal federal income taxes. federal unemployment taxes and state unemployment taxes—amounts for which the employer-clients and employee-participants may be individually responsible. It also exposed participants to other adverse financial consequences, including fees and penalties on the unpaid tax and ineligibility from certain government programs, including unemployment payments and reduced Social Security payments, the defendants admitted.
In truth, the only money actually paid to TTFG were the fees, which the Joachims used to make numerous personal expenses, including the purchase of a 26-foot boat, a 2016 Grand Design Solitude recreational trailer, a Chevrolet Corvette, a Jeep Wrangler, a Dodge Ram truck, a Mercedes-Benz CL 550 automobile, a GMC Yukon XL Denali, multiple CAN-AM Maverick 1000R off-road vehicles, jet skis, their 13,000 square foot Covington residence, real property located adjacent to their Covington residence, two residences located in Madisonville, Louisiana, 40 acres of property in Bush, Louisiana, and 125 acres of property in Spring City, Tennessee, the defendants admitted.
This case was investigated by the IRS-CI, the FBI, the DOL-OIG and the Employee Benefits Security Administration. Assistant U.S. Attorneys Jordan Ginsberg and Maria Carboni of the Eastern District of Louisiana and Trial Attorney Jared Hasten of the Criminal Division’s Fraud Section are prosecuting the case. Senior Trial Attorney Rebecca Pyne of the Criminal Division’s Organized Crime and Gang Section, Labor-Management Racketeering Unit also provided assistance with the prosecution.
The Medicare Fraud Strike Force is part of a joint initiative between the Department of Justice and U.S. Health and Human Services (HHS) to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
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19-683
Lobbyist Pleads Guilty to Filing A False Tax ReturnRead the Press Release
ALEXANDRIA, Va. – An Alexandria man pleaded guilty today to willfully filing a false tax return.
According to court documents, James F. Miller, 67, underreported his gross income on his 2010 through 2014 tax returns by approximately $2,215,587. Miller, a tax policy lobbyist and former employee of the Justice Department’s Tax Division, filed multiple false tax returns with the Internal Revenue Service (IRS). These returns omitted substantial portions of the partnership income he received from two law firms he worked at and the gross receipts of his own lobbying firm. The total tax loss resulting from Miller’s fraudulent conduct was approximately $735,933.
Miller pleaded guilty to willfully filing a false tax return and faces a maximum penalty of three years in prison when sentenced on September 27. In addition, Miller agreed to pay $753,933 restitution to the IRS. 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, Richard E. Zuckerman, Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division, and Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI) made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the plea. Assistant U.S. Attorney Ryan S. Faulconer and Trial Attorney Terri-Lei O’Malley of the Justice Department’s Tax Division 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. 1:19-cr-178.
Little Rock Man Sentenced to 15 Years in Prison for Child PornographyRead the Press Release
LITTLE ROCK—A Little Rock man was sentenced Thursday for possessing and distributing child pornography that showed children as young as one year old being sexually abused. Kenneth Laren Harvey, 49, of Little Rock, was sentenced to 180 months in federal prison by U.S. District Judge James M. Moody, Jr. The United States Attorney for the Eastern District of Arkansas, Cody Hiland, announced today’s sentencing.
During an online investigation in 2017, detectives downloaded child pornography from an IP address that officers traced to Harvey’s residence. The child pornography that detectives downloaded from Harvey included numerous videos depicting sexual acts being performed on children under the age of 12. Some of the videos were over 30 minutes long.
Based on those downloads, investigators obtained a search warrant for Harvey’s home. Officers seized multiple electronic devices, and forensic examination revealed that Harvey possessed over 2,000 images of child pornography. The images included depictions of sadism and masochism, as well as sexual acts being performed on children as young as one to three years old. During the search, detectives also discovered a peephole in Harvey’s shower, which he used to secretly film women.
“The sexual abuse of any child is abhorrent, but the degree of depravity in this case is especially disturbing because of the infant victims involved,” said U.S. Attorney Hiland. “These images are reprehensible, and collectors of child pornography like this defendant only create demand for more children to be abused. Our office will continue to prosecute those who perpetuate the horrors of the child pornography industry.”
Harvey was indicted by a federal grand jury on January 9, 2018, in an indictment that charged him with one count of possession of child pornography and three counts of distribution of child pornography. In addition to 15 years in prison, Harvey was ordered to pay $2,000 in restitution. Judge Moody also sentenced Harvey to ten years of supervised release following his term of imprisonment.
The investigation was conducted by the Little Rock Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Kristin Bryant.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at http://www.justice.gov/edarTwitter: @EDARNEWS
Lincoln Man Sentenced for Possessing Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that David Lombard, 51, of Lincoln, Nebraska, was sentenced today by Chief United States District Judge John M. Gerrard to 87 months in prison for possession of child pornography. After his release from prison, Lombard will serve 10 years of supervised release and be required to register as a sex offender.
In 2015, Homeland Security Investigations, Cyber Crimes Center, Child Exploitation Investigations Unit, found that a person using the username “sirthumper” distributed images of young females on a website catering to individuals interested in child pornography. Investigators identified David Lombard as “sirthumper”.
During an interview in March of 2015, Lombard provided the investigators with several of his electronic devices. A forensic analyst located 104 images of child pornography and seven morphed image files that included adult pornography with an adult male penis in the image with the face of a minor child added to the pornographic image. Agents identified some of the minors as children of Lombard’s coworkers. Lombard obtained innocent images from his coworkers’ social media postings, and those images were morphed with pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by Homeland Security Investigations.
Lewis County man sentenced for role in a methamphetamine distribution operation in Monongalia CountyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Douglas Charles Knicely, of Jane Lew, West Virginia, was sentenced today to 120 months incarceration for his involvement in a methamphetamine distribution operation, United States Attorney Bill Powell announced.
Knicely, age 37, pled guilty to one count of “Conspiracy to Possess with the Intent to Distribute Methamphetamine” in March 2019. Knicely admitted to participating in a drug distribution operation in October 2018 in Monongalia County.Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Morgantown Police Department investigated.
U.S. District Judge Thomas S. Kleeh presided.
Kiln Man Sentenced to over 7 Years in Prison for Trafficking MethamphetamineRead the Press Release
Gulfport, Miss. – Louis Brent Ladner, 41, of Kiln, Mississippi, was sentenced today by U.S. District Judge Sul Ozerden to 92 months in federal prison, followed by 4 years of supervised release, for possessing with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad L. Byerley with the Drug Enforcement Administration.
On two separate occasions in 2017, Ladner sold methamphetamine to a confidential source. A subsequent search warrant at his residence located approximately two additional ounce of high quality methamphetamine. Ladner pled guilty on March 26, 2019 to one count of possession with intent to distribute methamphetamine.
The case was investigated by the Drug Enforcement Administration and the Hancock County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney John Meynardie.
Justice Department Settles Housing Discrimination Lawsuit Against St. Bernard Parish, LouisianaRead the Press Release
WASHINGTON – The Department of Justice announced Thursday, June 20, 2019 that St. Bernard Parish, Louisiana, has agreed to pay more than $1 million to settle a lawsuit alleging that the Parish violated the Fair Housing Act when it refused to allow two small group homes for up to five children with disabilities to open in single-family neighborhoods.
“The Fair Housing Act prohibits local governments from applying their zoning laws in a manner that discriminates against persons with disabilities,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “This settlement underscores the Civil Rights Division’s commitment to ensure that children with disabilities have access to housing in all communities.”
“Access to safe, sanitary, and secure housing is a fundamental civil right for all persons within the Eastern District of Louisiana, and this settlement agreement continues efforts to ensure compliance to The Fair Housing Act,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana. “I commend the cooperative efforts of St. Bernard Parish to reach a resolution that is in the best interests of our community.”
“Persons with disabilities have a right to have access to the type of housing that meets their needs,” said Anna María Farías, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “Today’s settlement sends a strong message that HUD and the Justice Department are committed to ensuring that cities and municipalities fully adhere to the requirements of the Fair Housing Act.”
The United States’ suit, filed in U.S. District Court in New Orleans, Louisiana, in December 2018, alleged that St. Bernard Parish violated the Fair Housing Act when it denied requests for reasonable accommodations to its zoning ordinance to allow the two group homes to operate in single-family neighborhoods of the Parish. Shortly after learning that the homes were planning to open, the Parish amended its zoning code to prohibit group homes of any size in single-family neighborhoods. The two group home operators filed complaints with HUD, which in turn referred the complaints to the Department of Justice. The group home operators filed a lawsuit in 2016, which they have settled with the Parish.
Under the settlement, St. Bernard Parish will pay $975,000 in monetary damages and attorneys’ fees to the two group home operators, and a $60,000 civil penalty to the United States. The Parish amended its zoning ordinance to permit small group homes in single-family residential districts, amended its reasonable accommodation policy, and will take a number of actions to guard against further housing discrimination. These other actions include training officials and individuals involved in zoning and land use, designating a fair housing compliance officer, and reporting periodically to the Department of Justice during the term of the agreement.
The federal Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact the Department of Housing and Urban Development at 1-800-66-9777 or through its website at https://www.hud.gov/program_offices/fair_housing_equal_opp. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
June Grand JuryRead the Press Release
United States Attorney Joe Kelly announced the federal Grand Jury for the District of Nebraska has returned 15 indictments charging 17 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Devontez Bobo, age 26, is charged with transportation with intent to promote prostitution on September 6, 2018. The maximum possible penalty if convicted is 10 years’ imprisonment, $250,000 fine, 3-year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit property seized on or about September 6, 2018.
* Edwin Mauricio Castro, age 36, is charged with illegal reentry after deportation on or about June 5, 2019, following an aggravated felony conviction. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Judy K. Conley a/k/a Judy K. Werner, age 67, of Sidney, Iowa, is charged in a three-count Indictment. Count I charges the defendant with Social Security Fraud-failure to disclose income beginning on or about July, 2003 and continuing without interruption until around January, 2019. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count II charges the defendant with Social Security Fraud-false statement for determining right to benefits on or about August 30, 2018. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count III charges the defendant with Social Security Fraud-false statement an application on or about November 6, 2017. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Brandon Cordero, age 26, of Columbus, Nebraska, is charged with possession with intent to distribute 50 grams or more of methamphetamine on May 10, 2019. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, 4-year term of supervised release, and a $100 special assessment.
* Evaristo Fuego-Calel, age 27, is charged with illegal reentry after deportation on or about May 29, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Dylan T. Hedrick, age 25, of Lincoln, is charged in a four-count Indictment. Count I of the Indictment charges the defendant with production of child pornography transported to the United States between on or about May 1, 2018 to May 1, 2019. The maximum possible penalty if convicted is a minimum of 15 years to 30 years’ imprisonment, a $250,000 fine, a 5-year to Life term of supervised release, $100 special assessment. Count II of the Indictment charges the defendant with receipt of child pornography on or about August 18, 2018. The maximum possible penalty if convicted is 5 years to 20 years’ imprisonment, a $250,000 fine, a 5-year to Life term of supervised release, $100 special assessment. Count III of the Indictment charges the defendant with distribution of child pornography, on or about August 29, 2018. The maximum possible penalty if convicted is 5 to 20 years’ imprisonment, a $250,000 fine, a - year to Life term of supervised release, $100 special assessment. Count IV of the Indictment charges the defendant with possession of child pornography, with a prior conviction, on or about April 12, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 5-year to Life term of supervised release, $100 special assessment.
* Jack Eugene Knight, age 53, is charged with assault on a Federal Employee on or about April 17, 2019. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Jose Loarca Lopez, age 52, is charged with illegal reentry after deportation following a felony conviction on or about May 21, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Maria Isabel Lopez, age 55, of Grand Island, Nebraska, is charged in a three-count Indictment. Count I charges the defendant with theft of Government funds beginning on or about June 19, 2014 and continuing without interruption until around September 11, 2018. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count II charges the defendant with Social Security Fraud-false statement or representation on or about September 10, 2018. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count III charges the defendant with Social Security Fraud-occurrence of event affecting right to receive payment on or about November 4, 2011 and continuing without interruption until around September 11, 2018. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Pablo Morales Rodriguez, age 40, is charged in a three-count Indictment. Count I charges the defendant with false representation of a Social Security Number with intent to deceive beginning on or about February 13. 2019. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count II charges the defendant with false representation of a Social Security Number with intent to deceive beginning on or about February 27. 2019. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count III charges the defendant with false representation of a Social Security Number with intent to deceive beginning on or about March 13. 2019. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Antonio Phillip, age 34, is charged in a four-count Indictment. Count I of the Indictment charges the defendant with possession with intent to distribute cocaine on or about January 8, 2019. The maximum possible penalty if convicted is 20 years’ imprisonment, $1,000,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count II of the Indictment charges the defendant with possession with intent to distribute marijuana beginning on or about December 18, 2018 until January 8, 2019. The maximum possible penalty if convicted is 5 years’ imprisonment, $250,000 fine, a 2-year term of supervised release, and a $100 special assessment. Count III of the Indictment charges the defendant with felon in possession of a firearm on or about January 8, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, $250,000 fine, a 3-year term of supervised release, and $100 special assessment. Count IV of the Indictment charges the defendant with possessing or using a firearm in connection with a drug trafficking crime on or about January 8, 2019. The maximum possible penalty if convicted is Life imprisonment consecutive, $250,000 fine, a 5-year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit U.S. currency seized on or about January 8, 2019.
* Edgar Nazael Rodriguez Ordonez, age 31, is charged with illegal reentry after deportation following a felony conviction on or about May 30, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Jose Sebastian Urbina Morales, age 40, is charged with illegal reentry after deportation following a felony conviction on or about May 21, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Ashley Whited, age 30, of Sidney, Nebraska, Francisco Herrera, age 35, of Sterling, Colorado, and Jared Schaefer, age 26, of Sidney, Nebraska, are charged with conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine, beginning on or about March, 2019 and continuing to on or about May, 2019. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, 4-year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Herrera with possession with intent to distribute 500 grams or more of methamphetamine on or about May 10, 2019. The maximum possible penalty if convicted is Life imprisonment, $10,000,000 fine, a 5-year term of supervised release, and a $100 special assessment.
* Celestino Zavala-Aguirre a/k/a Jesus Tapia-Lopez, age 35, is charged with possession with intent to distribute 500 grams or more of methamphetamine on May 30, 2019. The maximum possible penalty if convicted is Life imprisonment, $10,000,000 fine, 5-year term of supervised release, and a $100 special assessment.
Jackson Man Sentenced to over Eleven Years for Sex Trafficking of a MinorRead the Press Release
Jackson, Miss. – Courtney Tremel Louie, 24, of Jackson, was sentenced today by Chief U.S. District Judge Daniel P. Jordan III to serve a total of 141 months in federal prison, followed by five years of supervised release, on charges relating to sex trafficking of a minor, announced U.S. Attorney Mike Hurst, FBI Acting Special Agent in Charge Steven J. Jenson, and Mississippi Attorney General Jim Hood.
"Trafficking minors for sex is one of the worst, most heinous and despicable crimes we see, and this office will stop at nothing to protect victims and put these criminals behind bars. I want to thank our investigators and prosecutors for diligently pursuing this monster. We will continue to work with all of our law enforcement partners to do all that we can to stamp out human trafficking," said U.S. Attorney Hurst.
Louie was sentenced to 84 months in prison for carrying a firearm during and in relation to a crime of violence (sex trafficking of a minor). He was sentenced to 57 months in prison for using the internet to promote and advertise the unlawful activity (prostitution). The sentences will be served consecutively for a total of 141 months. Louie was also ordered to pay a $1,500 fine.
Beginning on January 1, 2018, and continuing through January 5, 2018, Louie was actively involved with the sex trafficking of a minor he had transported from Tennessee to Jackson. The minor performed commercial sex acts with men for money at various hotels. Louie used the internet to promote his unlawful activity by placing ads on the website "Backpage.com".
The case was investigated by the Federal Bureau of Investigation, Jackson Police Department and the Mississippi Attorney General’s Office. It was prosecuted by Assistant United States Attorney Glenda R. Haynes.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Illegal Alien Sentenced to 35 Months in Federal Prison for Unlawful Possession of A FirearmRead the Press Release
Ocala, Florida – Senior U.S. District Judge John Antoon II today sentenced Trinidad Flores-Navarro (43, Mexico) to 2 years and 11 months in federal prison for possessing a firearm as an illegal alien. The court also ordered Flores-Navarro to forfeit a handgun and ammunition. Flores-Navarro had pleaded guilty on March 25, 2019.
According to evidence presented in court, on January 10, 2019, Florida Highway Patrol troopers conducted a traffic stop on an automobile in Sumter County. The passenger, Flores-Navarro, had an ammunition magazine in his pocket. A subsequent search of the vehicle’s center console revealed a loaded 9mm handgun with an additional ammunition magazine. Flores-Navarro, an illegal alien from Mexico, admitted that the firearm belonged to him. He also told the troopers that he had illegally re-entered the United States in 2017, following a federal conviction for cocaine distribution.
This case was investigated by U.S. Customs and Border Protection and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorneys Michael P. Felicetta and Robert E. Bodnar, Jr.
Illegal Alien Pleads Guilty to Unlawful Reentry by an Alien After RemovalRead the Press Release
Gulfport, Miss. – Luis Alberto Preza-Mendez, 31, an illegal alien from Mexico, pled guilty yesterday before U.S. District Judge Sul Ozerden, to unlawful reentry by an alien after removal, announced U.S. Attorney Mike Hurst, and Mr. Trey Lund, Acting Field Office Director of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations in New Orleans.
Preza-Mendez was found guilty of the felony offense and is scheduled to be sentenced by Judge Ozerden, on June 20, 2019, at 2:30 p.m. He faces a potential maximum penalty of 2 years in prison, followed by one year of supervised release, and a $250,000 fine. He also faces being removed from the United States following the completion of any prison sentence.
On March 12, 2019, the Harrison County Sheriff’s Office notified ICE that Preza-Mendez had been arrested for a domestic disturbance and confessed to being an illegal alien from Mexico. Preza-Mendez was arrested and transported to the Gulfport ICE Office. He was positively identified via a fingerprint scan into the Department of Homeland Security computerized records system which accessed his prior immigration records including photographs, fingerprints and prior removal documents. Electronic database queries confirmed that Mr. Preza-Mendez is a citizen of Mexico who had been physically removed pursuant to a lawful removal order and did not have permission to reenter the U.S.
Preza-Mendez had been officially ordered removed from the United States on October 13, 2013. After being physically removed based on this lawful order, he repeatedly returned to the United States, and was removed multiple times in 2014. At the time of his most recent removal in July, 2014, Preza-Mendez was prohibited from entering, attempting to enter, being in the United States or applying for admission to the United States for a period of twenty years.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security, Immigration & Customs Enforcement, Enforcement Removal Operations, and the Harrison County Sheriff’s Department. Assistant United States Attorney Stan Harris is the prosecutor for this case.
Illegal Alien Pleads Guilty to Unlawful Reentry by an Alien After RemovalRead the Press Release
Gulfport, Miss. – Marcos Martinez-Jimenez, 39, an illegal alien from Mexico, pled guilty yesterday before U.S. District Judge Sul Ozerden, to unlawful reentry by an alien after removal, announced U.S. Attorney Mike Hurst and Mr. Trey Lund, Acting Field Office Director of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations in New Orleans.
Martinez-Jimenez was found guilty of the felony offense and is scheduled to be sentenced by Judge Ozerden, on June 20, 2019, at 2:00 p.m. He faces a potential maximum penalty of 2 years in prison, followed by one year of supervised release, and a $250,000 fine. He also faces being removed from the United States following the completion of any prison sentence.
On April 17, 2019, during criminal alien program duties at the Jackson County Adult Detention Center, an ICE agent encountered Martinez-Jimenez who was being held for a misdemeanor city noise violation. Martinez-Jimenez was positively identified via a fingerprint scan into the Department of Homeland Security computerized records system which accessed his prior immigration records including photographs, fingerprints and prior removal documents.
Officials confirmed through record checks that Martinez-Jimenez originally was removed from the United States on December 2, 2015. He then, illegally reentered the United States and was removed three additional times on December 6, 2015, December 14, 2015, and December 22, 2015.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security, Immigration & Customs Enforcement, Enforcement Removal Operations, and the Jackson County Sheriff’s Department. Assistant United States Attorney Stan Harris is the prosecutor for this case.
Illegal Alien Arrested with Enough Fentanyl to Kill One Million People Pleads Guilty to Heroin TraffickingRead the Press Release
Gulfport, Miss. – Pablo Vega-Ontanon, 53, an illegal alien from Mexico living in Georgia, pled guilty today before U.S. District Judge Sul Ozerden to possession with intent to distribute one kilogram or more of heroin, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans.
On November 6, 2018, Vega-Ontanon and two co-defendants arrived in Gulfport to sell heroin to a confidential informant. They claimed to have ten kilograms of heroin hidden in a compartment of their vehicle. All three were arrested shortly thereafter. The substance was eventually tested and found to contain nine kilograms of heroin and one kilogram of fentanyl.
That amount of fentanyl can produce one million fatal doses.
Vega-Ontanon was indicted on November 27, 2018 along with co-defendants Eder Ortega- Casarrubias and Eric Estudillo Carrazco.
Vega-Ontanon will be sentenced by Judge Ozerden on September 23, 2019 at 9:00 a.m., and faces a maximum penalty of life in prison and a $10,000,000 fine.
Ortega- Casarrubias pled guilty on March 20, 2019 and will be sentenced by Judge Ozerden on June 26, 2019. Carrazco is awaiting trial.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney John Meynardie.
I-80 Bust Sends Indiana Man to PrisonRead the Press Release
United States Attorney Joe Kelly announced that Robert Eugene Huff, 69, formerly of Indianapolis, Indiana, was sentenced today in Lincoln, Nebraska, to 1 year in prison by Chief United States District Judge John M. Gerrard, for interstate transportation in aid of racketeering. In addition to his prison sentence, Huff will be required to serve 2 years on supervised release. Huff also forfeited $149,746.00 in cash and a 2016 Ford F-350 truck.
In December, 2017, the Lancaster County Sheriff’s Department stopped Huff’s pickup for following too closely as it was travelling through Lancaster County on Interstate 80. Huff was the driver and lone occupant of the vehicle. Huff stated that he had come from Brown County, Indiana, and was going back to his home in Chico, California. During that encounter a K9 officer was called to the scene of the stop. The K9 indicated to the odor of a controlled substance coming from the vehicle and the vehicle was searched.
Upon opening the tailgate and the topper, the deputies saw a large tote, locked and cable-tied to the bed of the pickup. The K9 officer was able to put his hand inside the top of it and pulled out vacuumed-sealed packages of money. There was also a tool chest, which held several bundles of money with sticky notes on them with people’s name and amounts on the notes. The deputies also found a backpack which held a $10,000.00 bundle of one hundred dollar bills, a $3,000.00 bundle of ten-dollar bills and several hundreds of dollars in one-dollar bills.
One of the officers asked Huff about the lock on the tote and Huff stated that he did not have a key for the bag, as it belonged to his son. Deputies later found the key among Huff’s belongings. Once the bags of money were opened, officers stated the currency smelled like raw marijuana. The currency was later tested and tested positive for cannabis. In all, $149,746.00 was recovered from the vehicle.
The deputies also found notes/paperwork/ledgers detailing Huff’s interstate travel across the country with mileage consistent with a trip from Chico, California, to an area south of Indianapolis, then back home to California. These notes provided information indicative of drug distribution activity. The paperwork indicated Huff had made two trips per month from March, 2016, to the date of the traffic stop. Based on an estimated $2,000 per pound value for the purchase of marijuana in California, the money seized by the Officers would convert to approximately 74.8 pounds of marijuana.
This case was investigated by Lancaster County Sheriff’s Department.
Husband and Wife Sentenced to Prison in Compounding Healthcare Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Edward Leonard Wells, Jr. (34, North Carolina) to two years and eight months in federal prison for conspiracy to commit healthcare fraud and aggravated identity theft. On April 18, 2019, Wells’s estranged wife, Alcira Mercedes Wells (34, Connecticut), was sentenced to 18 months in federal prison for conspiracy to commit healthcare fraud. The court also entered a money judgment of $32,747.93, the proceeds of the healthcare fraud conspiracy. Alcira Wells and Edward Wells had pleaded guilty in January 2019.
According to court documents, starting in September 2014 and continuing through February 2015, Alcira Mercedes Wells was a marketing representative for Centurion Compounding, Inc. As such, she earned and was promised commissions for each paid claim resulting from compounded creams marketed by Centurion and prescribed to a health care plan beneficiary recruited by Alcira Wells or other marketing representatives working for her.
Centurion was a marketing firm located in Pasco County that employed representatives to market compounded medications, specifically creams for pain and scars, among others, to beneficiaries of health care benefit programs, particularly TRICARE. These creams ranged in price from approximately $900 to $21,000 for a one-month supply. Centurion paid its marketing representatives a percentage of each paid claim, which ranged from 15-30% of the total claim amount.
Edward Leonard Wells, Jr. was married to Alcira Wells and worked as a Staff Sergeant in the United States Army stationed at Ft. Bragg in North Carolina.
Alcira and Edward Wells conspired to photocopy or otherwise duplicate a doctor’s signature, name, address, NPI number, and DEA number from an authorized prescription for these compounded creams onto scores of forged prescription forms in order to make claims for Centurion marketed creams for TRICARE beneficiaries whom the doctor never saw. This includes claims for prescription compounded creams for the Wells’s own family members, such as their three minor children. Alcira and Edward Wells then submitted and caused to be submitted dozens of fake and fraudulent prescriptions for Centurion-marketed compounded medications for U.S. Army personnel stationed at Ft. Bragg. The purported prescriber of these prescriptions never wrote, authorized, or knew about them.
Edward Wells recruited personnel stationed with him at Ft. Bragg, most of whom were subordinate in rank to him, and paid and offered to pay these TRICARE beneficiaries to obtain the compounded creams.
Alcira and Edward Wells caused TRICARE to be billed at least $1.24 million and TRICARE paid more than $1 million as a result of false and fraudulent claims submitted and caused to be submitted by them during the conspiracy.
This case was investigated by the Defense Criminal Investigative Service, the U.S. Department of Health and Human Services - Office of Inspector General, the Federal Bureau of Investigation, the U.S. Army Criminal Investigation Command, and the Naval Criminal Investigative Service. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Greenville Man Sentenced for Drug TraffickingRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that United States District Judge Louise W. Flanagan sentenced TRAWN JOVAL RODGERS, 39, of Greenville, North Carolina to 98 months imprisonment, followed by 3 years of supervised release.
RODGERS was named in a three-count Indictment filed on June 13, 2018 charging him with three counts of distribution of a quantity of cocaine. On August 14, 2018, RODGERS pled guilty to one of those charges.
According to the investigation, RODGERS distributed cocaine in Greenville, North Carolina. As part of the investigation, law enforcement made controlled drug purchases directly from RODGERS. On June 19, 2018, RODGERS was arrested, following which officers seized cocaine and drug paraphernalia during a search of his apartment.
This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click on this link. https://www.justice.gov/usao-ednc/tbnc
Investigation of this case was conducted by the Greenville Regional Drug Task Force consisting of the Greenville Police Department, Drug Enforcement Administration (DEA), Winterville Police Department, East Carolina University Police Department, and North Carolina State Bureau of Investigation. Assistant United States Attorney Dena King represented the government.
Gloucester Man Pleads Guilty to Bank RobberyRead the Press Release
BOSTON - A Gloucester man pleaded guilty yesterday in federal court in Boston to bank robbery.
Michael Robinson, 40, pleaded guilty to one count of bank robbery before U.S. District Court Judge William G. Young, who scheduled sentencing for Sept. 24, 2019.
On Nov. 19, 2018, a man, later identified as Robinson, entered the Institution for Savings Bank branch in Gloucester, walked up to the teller counter, passed a handwritten note to the teller, and stole $2,650. Within minutes of the robbery, local police responded to the bank. They reviewed bank surveillance footage and recognized Robinson as the robber. Police also matched bank surveillance footage of Robinson to a recent Facebook photograph Robinson posted the previous weekend. In that Facebook photo, Robinson was wearing the same clothing he wore when he robbed the bank. The investigation also revealed possible locations where Robinson might be, and, only a few hours after the robbery, police apprehended Robinson on a bus in another city.
The charge provides for a sentence of no greater than 20 years in prison, up to five years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the United States 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 Office; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Gloucester Police Chief Edward G. Conley made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
Gadsden County Deputy Sheriff Charged with Facilitating Drug Trafficking OffensesRead the Press Release
TALLAHASSEE, FLORIDA – Gadsden County Sheriff’s Deputy Joseph Barnes, Jr., 52, of Quincy, has been arrested on a federal criminal complaint alleging that he unlawfully used a communication facility to aid or facilitate the possession with intent to distribute a controlled substance. Barnes was released on court-ordered conditions that included surrendering his two service weapons and the trained K-9 that played prominently in Barnes’ alleged criminal activity. The criminal complaint was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
According to the criminal complaint, Barnes actively aided individuals who distributed drugs in the Gadsden County area by alerting these individuals that federal law enforcement was watching them. In addition, he is alleged to have physically examined drug transport vehicles to determine if law enforcement had attached GPS tracking devices to vehicles about to be used for drug transportation. The complaint also alleges that he used his Gadsden County K-9, which was trained to detect the odor of narcotics residue, to determine whether a law enforcement K-9 could detect the presence of drugs in cars equipped with a hidden compartment to transport a load of drugs. Barnes allegedly used his cell phone to facilitate meetings with these individuals to accomplish these goals.
The criminal complaint and arrest stemmed from an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), a joint federal, state, and local cooperative, which targeted a drug trafficking organization.
This case was investigated by the Federal Bureau of Investigation and the Drug Enforcement Administration. Assistant United States Attorney Eric K. Mountin is prosecuting the case.
A criminal complaint is merely an allegation that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
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 available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
Fresno Man Sentenced to over 21 Years in Prison for Methamphetamine Trafficking, Possession of A Firearm, and Interstate Transportation for ProstitutionRead the Press Release
FRESNO, Calif. — On June 17, 2019, Carlos Montano, aka “Loco,” 29, of Fresno, was sentenced by U.S. District Judge Lawrence J. O'Neill to 21 years and 10 months in prison for conspiracy to distribute methamphetamine, being a felon in possession of a firearm, and interstate transportation for prostitution, United States Attorney McGregor W. Scott announced.
According to court documents, Montano was an influential member of the Fresno Bulldogs criminal street gang. Between April 2017 and July 2017, Montano distributed multiple pounds of crystal methamphetamine in the Fresno area, often using others in his distribution activities. During the investigation, Montano discussed the possession and use of weapons, and on two separate occasions, he fled from officers who were attempting to apprehend him. Montano engaged in commercial sex trafficking, exploiting women in multiple cities, including Los Angeles, San Francisco, Las Vegas and New York.
This case is the product of an investigation by Homeland Security Investigations, Federal Bureau of Investigation, Drug Enforcement Administration, Fresno Police Department, Multi Agency Gang Enforcement Consortium, Fresno County Sheriff’s Office, and Fresno County District Attorney’s Office. Assistant U.S. Attorneys Kimberly A. Sanchez, Jeffrey A. Spivak, and Thomas Newman prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. 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.
Former Sandridge Employee Sentenced to 21 Months in Federal Prison for Fraud and KickbacksRead the Press Release
OKLAHOMA CITY – JOEL MATTHEW EILERTS, 40, of San Diego, California, has been sentenced to 21 months in federal prison for defrauding his former employer, SandRidge Energy, Inc., announced Timothy J. Downing, U.S. Attorney for the Western District of Oklahoma.
On October 25, 2017, Eilerts pleaded guilty to a two-count information that charged conspiracy to commit wire fraud and honest services wire fraud. According to the information, Eilerts worked in SandRidge’s land department from 2009 to 2014. He held the positions of Senior Landman and Land Supervisor before eventually being promoted to Land Manager, a position that made him the highest-ranking employee in SandRidge’s land department overseeing its Oklahoma operations. His position at SandRidge gave him access to confidential information regarding areas where SandRidge hoped to obtain oil and gas leases, including information regarding how much SandRidge was willing to pay in lease bonuses and royalties. He also had authority to hire third-party land brokers to acquire oil and gas leases on behalf of the company.
The information explains Eilerts hired Robert S. Kerr IV of R.S.K. Land and Energy Resources, LLC, and Brian Eischeid of Keystone Land & Minerals, LLC, as third-party brokers to obtain leases on behalf of SandRidge. Rather than paying Kerr and Eischeid a day rate for their services, Eilerts told them the maximum amount SandRidge would pay for a particular mineral interest, and tasked Kerr and Eischeid with securing the lease for less. If Kerr and Eischeid were able to secure a lease for less than SandRidge was willing to pay, they were able to keep the difference as profit. However, Eilerts required Kerr and Eischeid to pay him 1/3 of their profit as a kickback. In total, Eilerts was paid at least $345,000 in kickbacks as part of this scheme.
In addition, the information explains two instances in which Eilerts directed Kerr and Eischeid to obtain leases—one in Alfalfa County and one in Garfield County—in which the purported lessor turned out not to own the leased minerals. Nevertheless, SandRidge issued checks to Eischeid’s company, Keystone Land & Minerals, in the amount of $208,000 to fund the lease bonuses to the lessors. When Eilerts, Kerr, and Eischeid ultimately discovered that the purported lessors did not own title to the leased minerals, they did not return the $208,000 to SandRidge. Instead, at Eilerts’s direction, and without SandRidge’s authorization, they decided to keep the money and split it among themselves. Eilerts himself retained $148,000 in this scheme.
On June 20, 2019, U.S. District Judge Robin J. Cauthron sentenced Eilerts to 21 months in prison. He was also ordered to pay $493,707.59 in restitution to SandRidge. After release from prison, he will serve two years on supervised release. During the first year of supervised release, he is required to complete 104 hours of community service. Eilerts is required to report to the Federal Bureau of Prisons to begin his term of imprisonment by September 3, 2019.
In related cases, Kerr pleaded guilty on November 9, 2017, to a one-count information that charged conspiracy to commit wire fraud. Kerr will be sentenced on July 22, 2019. Eischeid pleaded guilty on April 8, 2019, to one count of misprision of a felony. Eischeid is scheduled to be sentenced on July 9, 2019.
These cases are the result of an investigation by the FBI Oklahoma City Division. They were prosecuted by Assistant U.S. Attorneys Jessica L. Perry and Kerry A. Kelly.
Reference is made to public filings for further information.
Former Pharmacy Professor Sentenced for Transportation of Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Philip Gregory, 48, was sentenced today in federal court for transporting child pornography. The Honorable Robert F. Rossiter, Jr. sentenced Gregory to 8 years of imprisonment. There is no parole in the federal system. After his release from prison, Gregory will begin a 10-year term of supervised release and will be required to register as a sex offender. He was further ordered to pay $4,500 in restitution to victims portrayed in the images of child pornography. Gregory was formerly a professor of pharmacy at Creighton University in Omaha, Nebraska.
According to admissions made in connection with his guilty plea, Gregory was identified in 2016 via an investigation initiated by a NCMEC CyberTipline report regarding an individual who had uploaded child pornography into a Google+ Photos internet storage account. The reported IP address resolved to the defendant’s residence, and a search warrant was executed at Gregory’s home. A forensic exam of electronic devices seized pursuant to the warrant revealed that Gregory was in possession of 25,808 image files and 174 videos of child pornography. Additionally, the exam revealed that Gregory had participated in online chats discussing and requesting child pornography from others.
The FBI Child Exploitation Task Force in Omaha investigated this case, in conjunction with the Nebraska State Patrol and the Douglas County Sheriff’s Office. Trial Attorney Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Michael Norris of the District of Nebraska prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Kiddar Capital CEO Sentenced to PrisonRead the Press Release
ALEXANDRIA, Va. – An Arlington man was sentenced today to six and a half years in prison for orchestrating multiple fraud schemes that resulted in total losses of approximately $20 million.
According to court documents, Todd Elliott Hitt, 54, solicited approximately $30 million from investors for a variety of real estate and venture capital investments in the Washington, D.C. area from 2014 through August 2018. The investments included Hitt’s solicitation of approximately $17 million from investors in order to purchase a five-story office building adjacent to a planned future stop on the Silver Line in Herndon. Hitt made false statements and material omissions to investors by failing to disclose that a significant portion of the monies raised were commingled with other unrelated investment projects, used for personal spending to support an extravagant lifestyle and new investor’s funds used to pay off old investors in a Ponzi-like scheme. Hitt’s fraudulent conduct resulted in investor losses of approximately $20 million.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Charles Dayoub, Acting Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Mark D. Lytle prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-43.
Former Grain Elevator Manager Sentenced to 96 Months in Prison for $5 Million Fraud Scheme, Tax EvasionRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of JEROME ROBERT HENNESSEY, 56, to 96 months in prison for mail fraud and income tax evasion. HENNESSEY, who pleaded guilty on February 14, 2019, was sentenced earlier today before Chief Judge John R. Tunheim in U.S. District Court in Fergus Falls, Minnesota.
“As a manager, Mr. Hennessey held a position of trust over the Co-op’s members and their financial interests. Unfortunately, he chose to violate that trust by committing an egregious fraud, stealing from his own colleagues, friends, and neighbors,” said U.S. Attorney Erica MacDonald. “This case has had a significant impact on the Ashby community and its industry. Today’s sentencing is a just outcome and a demonstration of the U.S. Attorney’s Office’s commitment to protecting Minnesotans from all types of crime – including financial crimes.”
According to the defendant’s guilty plea and documents filed in court, from 1988 until September 2018, HENNESSEY was an employee of the Ashby Farmers’ Cooperative Elevator Company (“the Co-op”). Beginning in 2003, HENNESSEY began using his position as the general manager to steal millions of dollars from the Co-op. HENNESSEY wrote hundreds of checks to himself and to third parties for, among other things, renovations and improvements to his residence and a cabin, the purchase of real estate, furniture, jewelry, all-terrain vehicles, outstanding credit card balances, property taxes, expensive hunting trips, taxidermy services, and the shipping costs for animals he had killed during the hunting trips.
According to the defendant’s guilty plea and documents filed in court, HENNESSEY attempted to disguise the payments by writing descriptions on the carbon copies of the checks falsely indicating that the checks were for the purchase of corn and soybeans or other legitimate expenses. HENNESSEY then provided the carbon copies to the Co-op’s bookkeeper, thus ensuring that the Co-op’s accounting records would give the false impression that the funds had been used for legitimate purposes. In order to make sure that the Co-op had sufficient funds to cover its legitimate expenses and to cover the millions of dollars that HENNESSEY stole, HENNESSEY obtained a line of credit for more than $7 million. In total, HENNESSEY stole approximately $5,338,922.21.
This case was the result of an investigation conducted by the Internal Revenue Service-Criminal Investigation Division, the Grant County Sheriff’s Office, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney John Kokkinen prosecuted the case.
Defendant Information:
JEROME ROBERT HENNESSEY, 56
Dalton, Minnesota
Convicted:
- Mail fraud, 1 count
- Income tax evasion, 1 count
Sentenced:
- 96 months in prison
- Three years of supervised release
- $5,338,922.21 in restitution to Ashby Farmers’ Cooperative Elevator Company
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former GBI inspector sentenced for charging over $60,000 on government credit cardsRead the Press Release
ATLANTA - Sandra J. Stevens, f/k/a Sandra J. Putnam, has been sentenced for making more than 325 personal charges totaling over $60,000 on government credit cards when she was a high-ranking member of the Georgia Bureau of Investigation (“GBI”).
“No member of law enforcement is above the law,” said U.S. Attorney Byung J. “BJay” Pak. “Stevens traded the years of distinguished service and trust that she built as an agent for personal gain. Citizens must have confidence in the integrity of those entrusted with law enforcement power.”
“It is imperative sworn officers obey the law while they enforce the law. This sentence sends a clear message that public corruption will not be tolerated and the violators, no matter who they are, will be held accountable,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
According to U.S. Attorney Pak, the indictment, and other information presented in court: the GBI is a statewide agency that provides assistance to the criminal justice system in the areas of criminal investigations, forensic laboratory services, and computerized criminal justice information.
In October 1994, Stevens joined the GBI as an Intelligence Technician. On June 3, 1999, after becoming a Special Agent, Stevens took an oath of office to support and defend the Constitutions of the United States and the State of Georgia; to maintain public trust and abide by the GBI’s Code of Ethics; and to obey the laws of the land and the regulations of the GBI.
As a Special Agent with the GBI, Stevens held several prestigious and high-ranking leadership positions, including being the Special Agent in Charge of the Child Exploitation and Computer Crimes Unit, where she supervised approximately 25 GBI employees; and an Inspector of the Investigative Division, where Stevens supervised approximately 55 GBI employees. As the Inspector of the Investigative Division, Stevens earned more than $100,000 per year.
As a state agency, the GBI participates in Georgia’s Visa Purchasing Card (“P-Card”) Program. P-Cards are credit cards provided to Georgia employees for official business purchases, such as supplies, materials, equipment, and services for official use. State policy expressly prohibits using P-Card for personal purchases. P-Card users are required to reconcile all purchases by electronically uploading receipts for each P-Card transaction.
In 1998, the GBI issued Stevens a P-Card for business-related purchases and expenses. As P-Card holder, Stevens signed an agreement stating that “under no circumstances will [she] use the Purchasing Card to make personal purchases, either for [her]self or for others.”
Nevertheless, from approximately May 9, 2013 to August 17, 2016, Stevens used her P-Card and the P-Cards of other GBI employees to make more than 325 unauthorized purchases of goods and services for her personal benefit or the personal benefit of others, including: a seven-piece dining set for $562.99, a corn hole game set for $229.99, two chaise lounge chairs for $399.99, and a 65-inch ultra HD smart television for $1597.99.
Stevens also submitted altered receipts to the GBI in which she changed the description of the items purchased, the addresses to which the items were shipped, or both the item description and the shipping address. For example, on May 27, 2016, Stevens used another GBI employee’s P-Card to order a $930.12 sofa from Amazon.com that was delivered to her home in Covington, Georgia. Subsequently, Stevens submitted a false receipt to the GBI in which she misrepresented the item description as 12 anti-spyware software discs, rather than a sofa, and misrepresented the shipping address as the GBI’s Headquarters in Decatur, Georgia, rather than her home address.
In total, the GBI paid over $60,000 for more than 325 unauthorized purchases made by Stevens on at least six GBI P-Cards. As a result of Stevens’s scheme to defraud, federal money from the U.S. Department of Justice and U.S. Department of Homeland Security grants was impacted.
Sandra J. Stevens, 46, of Covington, Georgia, was sentenced by U.S. District Judge Steve C. Jones to one year and one day in prison to be followed by two years of supervised release. Stevens was convicted on January 3, 2019, after she pleaded guilty to mail fraud.
This case was investigated by the Georgia Bureau of Investigation, with assistance from the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, and Jolee Porter prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Five Individuals Sentenced for Roles in Southern Vermont Drug ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that five individuals have been sentenced by Chief United States District Judge Geoffrey W. Crawford for their roles in a prolonged conspiracy to distribute heroin and cocaine base in Vermont. On June 19, 2019, Joaquin Diaz-Alicea, a.k.a. “J.J.,” of Springfield, Massachusetts, was sentenced to ten years in federal prison, to be followed by five years of federal supervised release. Previously, Andrew Cruz, a.k.a. “Tone,” of Springfield, Massachusetts, was sentenced to ten years in federal prison to be followed by four years of federal supervised release; Jonthony Maldonado, a.k.a. “Little Tone,” of Springfield, Massachusetts was sentenced to 30 months in federal prison, to be followed by a three-year term of supervised release; Steven Miller, of Vernon, Vermont, was sentenced to one year in federal prison, to be followed by a three-year term of supervised release; and Laura Frankiewicz, of Brattleboro, Vermont, received a time-served sentence, to be followed by a three-year term of supervised release. A sixth defendant, Anthony Serrano, was also charged in the indictment prior to his death, which resulted from a reported gang-related shooting in Springfield, Massachusetts.
As described at the defendants’ sentencing hearings and in court records, between late 2014 and February of 2016, the defendants conspired to distribute large quantities of heroin and cocaine base in and around Brattleboro, Vermont. On November 18, 2014, Cruz and Serrano were stopped in a motor vehicle equipped with a “hide” containing 180 grams of cocaine base, 103 grams of powder cocaine, 30 Oxycodone pills, and a loaded Beretta 9mm handgun. Thereafter, between mid-2015 and early 2016, the Vermont Drug Task Force utilized confidential informants to conduct nine separate controlled purchases of heroin and cocaine base from the members of the conspiracy.
Serrano and Cruz were the leaders of the drug trafficking organization. Cruz’s criminal history included convictions for assault and battery, assault and battery on a police officer, and a 2018 federal conviction in the District of Massachusetts for distribution of cocaine base and possession with intent to distribute cocaine base. In that federal case, the FBI’s Western Massachusetts Gang Task Force was engaged in an investigation into the distribution of heroin, cocaine, cocaine base, and firearms from suspected members of the Latin Kings gang in Holyoke and Springfield. On two occasions Cruz sold an informant a total of 31 grams of cocaine base. Cruz received a three year sentence in federal court in Massachusetts, which will run concurrent to his 10 year sentence.
Diaz-Alicea was immediately subordinate to Cruz in the drug trafficking organization. Witnesses stated that both Cruz and Diaz-Alicea possessed firearms while selling drugs in Vermont. Diaz-Alicea’s criminal history includes four separate firearms-related convictions, as well as convictions for assault and battery, assault with a dangerous weapon (shotgun), malicious damage to a motor vehicle, threats, and assault and battery on a correctional guard. These offenses included an incident in which Diaz-Alicea fired a shotgun at a motor vehicle, and a separate incident in which he approached a vehicle and fired a handgun through the driver’s-side window causing a bullet to strike the driver of the vehicle. Diaz-Alicea has two pending cases in Massachusetts alleging domestic assault and battery and aggravated assault and battery, and a separate case alleging assault and battery, assault and battery with a dangerous weapon, and discharging a firearm. In the latter of these cases, Diaz-Alicea is alleged to have shot an individual twice with a handgun over an alleged drug debt. Diaz-Alicea is presumed innocent of these pending Massachusetts charges.
Maldonado was the drug trafficking organization’s “apprentice.” In addition to selling heroin and cocaine base on behalf of the drug trafficking organization, Miller and Frankiewicz, provided Cruz, Diaz-Alicea, and Maldonado with housing in Vermont in exchange for heroin and cocaine base.
United States Attorney Christina E. Nolan commended the collaborative investigation led by the Vermont State Police Drug Task Force, with support from Drug Enforcement Administration and the Bellows Falls Police Department, stating: “The talent and diligence of the Vermont State Police drug unit, working closely with their federal and local law enforcement partners, led to the dismantling of a very significant drug pipeline from Springfield, Massachusetts to the Brattleboro area. Windham County suffered more overdose deaths than any other Vermont county last year. The U.S. Attorney’s Office will continue to deploy federal enforcement resources to southeast Vermont to remove dangerous, for-profit drug traffickers from its communities and to reduce the supply of deadly drugs flowing up Interstate 91. Drug trafficking organizations like this one will continue to be top targets for federal prosecution and we will pursue serious sentences.”
The case was prosecuted by U.S. Attorney Nolan and Assistant U.S. Attorney Nate Burris. Cruz was represented by Attorney John Mabie. Diaz-Alicea was represented by Attorney Paul Volk. Maldonado was represented by Attorney Peter Langrock. Miller was represented by Attorney Michael Shklar. Frankiewicz was represented by Attorney Thomas Sherrer.
Findlay Market Vendor Convicted of $3.4 Million in Food Stamp FraudRead the Press Release
DAYTON – A husband and wife and their Findlay Market vendor have all been convicted of food stamp fraud. A jury returned the verdict today of guilty on all 25 counts following a two-week trial before U.S. District Judge Thomas M. Rose.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Anthony V. Mohatt, Special Agent in Charge, U.S. Department of Agriculture Office of Inspector General Investigations, Midwest Region, Yvonne DiCristoforo, Special Agent in Charge, U.S. Secret Service and Michelle Thourot, Agent-in-Charge, Ohio Investigative Unit, announced the verdict.
A federal grand jury charged Busch’s Country Corner, Inc. and officials with charges related to Supplemental Nutrition Assistance Program (SNAP) fraud in an indictment returned here in June 2018.
According to court documents and trial testimony, from April 2010 until May 2018, Busch’s Country Corner co-owner Michael Busch, his wife, Amanda Jo Busch, and his brother, Randall S. Busch, illegally exchanged cash for SNAP benefits.
The defendants caused more than 195,000 individual SNAP Electronic Benefit Transfer (EBT) transactions to be completed by Busch’s Country Corner, totaling more than $5.4 million. According to witness testimony at trial, approximately 64 percent, or $3.4 million, of those SNAP transactions were fraudulent.
Co-conspirators used an electronic point of sale device in order to process EBT transactions for cash. For example, one transaction included a beginning EBT balance of $1,300 and an ending balance of $11.
Michal and Amanda Busch and Busch’s Country Corner were each convicted on all counts, including conspiracy to steal government funds, submitting false claims, SNAP fraud and wire fraud.
“There is no substitute for trial by jury,” said U.S. Attorney Glassman. “After listening to the evidence attentively for two weeks, this jury rendered verdicts to ensure that the defendants did not get away with getting ahead by stealing taxpayer money.”
Randall Busch previously pleaded guilty and was sentenced to five years of probation.
U.S. Attorney Glassman commended the investigation of this case by the USDA OIG, Secret Service and Ohio Investigative Unit, as well as Assistant United States Attorney Dwight Keller and Deputy Criminal Chief Laura Clemmens, who are prosecuting the case.
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Final Defendant Sentenced in Methamphetamine Trafficking ConspiracyRead the Press Release
Abingdon, VIRGINIA – Kevin Thomas Seigler was sentenced this week to 286 months in prison for his role in a conspiracy that trafficked large amounts of methamphetamine and opioids from Nevada into Southwest Virginia and Eastern Kentucky, United States Attorney Thomas T. Cullen announced.
Seigler, 36, of Las Vegas, was previously convicted of one count of conspiracy to distribute 500 grams or more of methamphetamine and conspiracy to use a communication facility to facilitate a drug trafficking offense and one count of failure to appear. In addition, $19,669 in U.S. currency was seized from Seigler and forfeited as proceeds of drug trafficking.
“I am grateful for the dedication and hard work of our federal, state, and local law-enforcement partners in dismantling this large drug-trafficking ring and sending 32 of its members to federal prison,” U.S. Attorney Cullen stated today. “We will continue to target the individuals and organizations responsible for distributing large quantities of these deadly drugs into our communities.”
In late 2016, law enforcement agencies, led by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration, and assisted by agencies from across southwest Virginia and Las Vegas, Nevada, charged 32 individuals with conspiring to commit money laundering and to distribute methamphetamine, oxycodone, and buprenorphine. The investigation, Operation Leaving Las Vegas, accused 32 individuals of being members of a drug trafficking organization that shipped methamphetamine, oxycodone, and buprenorphine from Las Vegas into Southwest Virginia, Eastern Kentucky and elsewhere. Evidence presented at Seigler’s trial demonstrated that Seigler was a member of the organization and was responsible for supplying quantities of methamphetamine that were then shipped to Southwest Virginia. In March 2016, officers with the Las Vegas Metropolitan Police Department seized two pounds of methamphetamine that had been sold by Seigler to another member of the organization and also recovered $19,669 in U.S. currency from Seigler’s residence. Seigler also previously pleaded guilty to one count of failing to appear for a trial scheduled in May 2017.
To date, all of the 32 defendants charged have been convicted of federal drug conspiracy and money laundering charges and sentenced. Additionally, throughout the course of the investigation, more than $60,000 in currency has been seized and money judgments totaling $995,074.52 have been ordered. Those previously sentenced are:
- Richard Henry Kayian, 58, Las Vegas, Nevada - 324 months imprisonment and ordered to pay a forfeiture money judgment in the amount of $743,441.52, for one count of conspiracy to distribute 500 grams of methamphetamine and oxycodone, and one count of money laundering.
- Stephen Cino, 52, Henderson, Nevada – 292 months imprisonment and ordered to pay a forfeiture money judgment of $251,633.00 for one count of conspiracy to distribute 500 grams or more of methamphetamine, oxycodone and buprenorphine, and one count of money laundering.
- Tracey Allen Callihan, 49, Glade Spring, Virginia - 324 months imprisonment and ordered to pay a forfeiture money judgment of $30,000.00 for one count of conspiracy to distribute 500 grams or more of methamphetamine and oxycodone, and one count of money laundering.
- Brandon Lee Stone, 33, Abingdon, Virginia – 300 months imprisonment for one count of conspiracy to distribute 500 grams or more of methamphetamine, oxycodone and buprenorphine, and one count of money laundering.
- Misael Reyes Tajimaroa, 32, Spokane, Washington – 192 months imprisonment for one count of conspiracy to distribute 500 grams or more of methamphetamine, oxycodone and buprenorphine, and one count of money laundering.
- Bradley Lee Chapman, 28, Bristol, Virginia - 135 months imprisonment for one count of conspiracy to distribute methamphetamine, oxycodone and buprenorphine, and one count of money laundering.
- Kaitlynn Elizabeth Chapman, 26, Bristol, Virginia – 72 months imprisonment for one count of conspiracy to distribute methamphetamine, oxycodone and buprenorphine, and one count of money laundering.
- John Williams, 50, Glade Spring, Virginia – 18 months imprisonment and a $2,500 fine for one count of conspiracy to use a communications facility to facilitate a drug trafficking offense.
- Rebecca Williams, 51, Abingdon, Virginia – 108 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Heather Michelle Sullins, 27, Abingdon, Virginia – 30 months imprisonment for one count of conspiracy to distribute methamphetamine, oxycodone and buprenorphine.
- Alex Michael Kayian, 23, Bristol, Virginia - 72 months imprisonment for one count of conspiracy to distribute methamphetamine, oxycodone and buprenorphine, and one count of money laundering.
- Ralph Stewart Dingus, 27, Abingdon, Virginia - 37 months imprisonment for one count of conspiracy to distribute methamphetamine.
- John Dewayne Farmer, 32, Abingdon, Virginia - 240 months imprisonment for one count of conspiracy to distribute methamphetamine and one count of money laundering.
- Lola Virginia Farmer, 52, Abingdon, Virginia - 87 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Shauna Nicole Chafin, 36, Abingdon, Virginia - 97 months imprisonment for one count of conspiracy to distribute 500 grams or more of methamphetamine, oxycodone and buprenorphine.
- William Wesley Fleenor, 29, Abingdon, Virginia - 79 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Jeffrey Nathaniel Gobble, 25, Abingdon, Virginia - 46 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Preston Kyle Lawson, 21, Abingdon, Virginia - 46 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Gary Chapman, 47, Clay City, Kentucky - 151 months imprisonment for one count of conspiracy to distribute 500 grams or more of methamphetamine.
- Daniel Corey Cantrell, 25, Abingdon, Virginia - 37 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Tanner Morris Curd, 23, Meadowview, Virginia - 84 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Amy Lorene Moser, 52, Abingdon, Virginia -100 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Steven Salyer, 27, Abingdon, Virginia - 87 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Brandon Cody Trivett, 23, Abingdon, Virginia - 30 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Brian Edward Widener, 30, Abingdon, Virginia – 46 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Justin Lowe, 24, Abingdon, Virginia – 41 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Lamar Skipper, 27, Chilhowie, Virginia - four years’ probation for one count of conspiracy to distribute oxycodone and one count of money laundering
- Gary Brandon Childress, 25, Abingdon, Virginia - three years’ probation for one count of conspiracy to distribute oxycodone.
- Austin Obranovic Boardwine, 24, Abingdon, Virginia - four years’ probation for one count of conspiracy to distribute oxycodone and buprenorphine.
- Caleb Dean, 28, Damascus, Virginia – 48 months imprisonment for one count of conspiracy to distribute methamphetamine and oxycodone.
- Charlene Hale, 25, Bristol, Tennessee – four years’ probation for one count of conspiracy to distribute methamphetamine and oxycodone.
The investigation of the case was conducted by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Internal Revenue Service Criminal Investigations, United States Marshals Service, Virginia State Police, Washington County, Virginia Sheriff’s Office, Abingdon Police Department, Marion Police Department, Smyth County, Virginia Sheriff’s Office and Las Vegas Metropolitan Police Department. Assistant United States Attorneys Cagle Juhan and Zachary T. Lee are prosecuting the case for the United States.
Federal Jury Convicts Winter Springs Woman of Theft of Government Funds and Making A False Statement to the Social Security AdministrationRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury today found Jaimi Hawkins (51, Winter Springs) guilty of theft of government funds and making a false statement to a federal agency. Hawkins faces a maximum penalty of 10 years in federal prison for the theft offense and up to 5 years’ imprisonment for the false statement offense. Her sentencing hearing is scheduled for September 2, 2019.
Hawkins was indicted on February 13, 2019.
According to evidence presented at trial, Hawkins made omissions and misrepresentations regarding her son’s living arrangements on an application for Supplemental Security Income. She also made misrepresentations and omissions regarding her son’s living arrangements during a subsequent benefit review interview. Hawkins knew that her son’s true living arrangements would have made him ineligible for benefits. As a result of the omissions and misrepresentations, Hawkins obtained $30,705 in Supplemental Security Income benefits to which she was not entitled.
Hawkins also made false statements to the Social Security Administration regarding how she spent the Supplemental Security Income benefits received on behalf of her son.
This case was investigated by the Social Security Administration, Office of the Inspector General. It is being prosecuted by Special Assistant United States Attorney Suzanne Huyler and Assistant United States Attorney Emily Chang.
Federal Jury Convicts San Antonio Businessman on Health Care Fraud ChargesRead the Press Release
In San Antonio this afternoon, a federal jury returned a guilty verdict against Rafael Enrique Rodriguez for engaging in health care fraud, announced Special Agent in Charge Christopher Cave of the United States Postal Service Office and United States Attorney John F. Bash.
Rodriguez, age 40, of San Antonio, was convicted on six counts of health care fraud, five counts of wire fraud, and one count of aggravated identity theft. Rodriguez was the owner/operator of 210 Workers with offices providing physical therapy and rehabilitation services in both San Antonio and Salt Lake City, Utah.
Evidence at trial demonstrated that between October 22, 2012 and December 14, 2016, Rodriguez devised a scheme to defraud the Federal Employees Compensation Act program, a federal health care benefit program that provides worker’s compensation services to federal employees. Specifically, Rodriguez billed the program for physical therapy and treatment using codes indicating that a qualified professional provided those services when, in fact, unlicensed technicians were providing them. Additionally, Rodriguez used the identity of another individual, a licensed physical therapist, to obtain provider registration with the program without the permission of the therapist. Rodriguez fraudulently billed the program $8,413,103.14 for these services for which he was paid over $6,300,000.
“The guilty verdict issued today is a testament to the thorough investigation conducted by our agents which uncovered an elaborate scheme to exploit Federal benefits programs for personal gain,” said Special Agent in Charge Christopher Cave of the U.S. Postal Service Office of Inspector General Southern Area Field Office. “The USPS-OIG, along with our law enforcement partners, will continue to vigorously investigate these types of cases in order to deter and stop medical providers and beneficiaries from engaging in these fraud schemes.”
Rodriguez faces up to 10 years in federal prison for the health care fraud convictions, up to 20 years in federal prison on the wire fraud convictions, and up to two years in federal prison for the aggravated identity theft conviction. He remains on bond pending sentencing, which is scheduled for September 23, 2019 before United States District Judge David A. Ezra.
Special Agents with the Postal Inspector OIG, Veterans Administration OIG, and Department of Labor OIG investigated this case. Assistant United States Attorney Gregory J. Surovic prosecuted this case on behalf of the Government.
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Federal Jury Convicts Memphis Man of Bank Robbery, CarjackingRead the Press Release
Memphis, TN – After a four-day trial, a federal jury has convicted a local man of bank robbery and carjacking. D. Michael Dunavant, United States Attorney announced the guilty verdict today.
According to the information presented in court, on July 26, 2018, defendant Lorenzo Davis, 29, and two other males robbed a Memphis man at gunpoint. Davis then walked the victim two miles to an ATM machine and forced him to withdraw his last $40 at gunpoint. The next day, Lorenzo Davis committed a carjacking by shooting a Memphis man in the neck and taking his Toyota Solara.
On June 20, 2019, a federal jury convicted Davis of bank robbery, brandishing a firearm during a bank robbery, carjacking, and being a felon in possession of a firearm during both incidents.
Sentencing is set for October 2, 2019, before U.S. District Court Judge Mark Norris.
U.S. Attorney D. Michael Dunavant said: "This is precisely the type of violent gun offender that threatens lives and public safety in Memphis. These federal bank robbery, carjacking, and firearms charges are evidence of the aggressive approach taken by this office to remove the worst of the worst offenders from our streets. This jury verdict finding this dangerous criminal guilty of brazen and recidivist violent behavior demonstrates that the community is Fed Up with repeat offenders who have dedicated their lives to lawlessness and violence."
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Memphis Police Department Violent Crimes Unit.
Assistant U.S. Attorneys Elizabeth Rogers and Neal Oldham are prosecuting this case on behalf of the government.
Father and Son Sentenced for Juneau Drug Trafficking ConspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that a father and son have been sentenced for their roles in distributing large quantities of methamphetamine in Juneau.
Charles Edward Cotten, Jr., 53, of Juneau, was sentenced yesterday by Chief U.S. District Judge Timothy M. Burgess to serve 10 years in prison, followed by 25 years of supervised release, after having pleaded guilty to four counts of drug distribution. Cotten’s son and co-conspirator, Ricky Stapler Lisk, 37, of Juneau, was previously sentenced to serve five years in prison, followed by five of supervised release, after having pleaded guilty to one count of drug distribution.
According to court documents, in May and June 2017, Cotten distributed methamphetamine to individuals on four separate occasions in Juneau, for a total of 112 grams of methamphetamine. During one of these transactions, Cotten was accompanied by Lisk and his late common law wife and had them handle money, drugs, or both during the transaction. The investigation revealed that one of the transactions was conducted on Cotten’s recreational boat, M/V Northwind, and that Lisk received part of the drug proceeds.
At the time of Cotten’s arrest, he was in possession of a loaded .45 caliber firearm located inside his vehicle, and an additional 391.9 grams of methamphetamine. The total amount of drugs seized during the course of the criminal conduct was over 500 grams of methamphetamine, which was either distributed or possessed with the intent to distribute in Juneau. Law enforcement also seized Cotten’s motorcycle and the M/V Northwind, which were used in furtherance of his drug trafficking activities. According to court documents, the amount of drugs seized is enough dosage units to supply nearly 5,000 individuals (1/6 of the population of Juneau) with methamphetamine.
The Federal Bureau of Investigation (FBI) and the Juneau Police Department (JPD) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jack S. Schmidt.
Fatal stabbing sends Lame Deer man to prison for six yearsRead the Press Release
BILLINGS—Lame Deer resident Darrell Lee Whiteman, Jr., who admitted to fatally stabbing a person during an argument on the Northern Cheyenne Indian Reservation, was sentenced today to 73 months in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Whiteman, 29, pleaded guilty in February to voluntary manslaughter.
U.S. District Judge Susan Watters presided.
Prosecutors said evidence would show that on March 4, 2017, Whiteman was at a Lame Deer residence, drinking with others. Whiteman got into an argument with his girlfriend, and the victim told Whiteman to stop. Whiteman and the victim then got into a fight that was broken up by another person.
The victim went to the kitchen for a drink of water, and Whiteman grabbed a knife from the kitchen. The fight between the two continued. Whiteman reached around another individual who was in between the two and stabbed the victim once in the chest. Whiteman left the residence and the victim later died.
Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the FBI.
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Employee at Mortgage Company Admits Illegally Accessing Computer to Steal $2 MillionRead the Press Release
CAMDEN, N.J. – A Camden woman today admitted accessing a protected computer without authorization to steal money from her employer and then laundering the proceeds of her theft, U.S Attorney Craig Carpenito announced.
Dilcia Mercedes 38, pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging her with one count of unauthorized access of a computer with intent to defraud and one count of money laundering.
According to documents filed in this case and statements made in court:
From April 2014 to May 2017, Mercedes worked for a mortgage lender as a payment processor, and had access to the company’s computer system. She discovered that some escrow checks were returned to the company as undeliverable. Mercedes admitted that she would monitor those funds by checking monthly reports to see if the funds were ever claimed. If the money was not claimed, Mercedes recruited various family members and friends to allow her to use their bank accounts. With that information, Mercedes used her family members’ and friends’ identities to open reloadable debit/credit accounts. She accessed the company’s computer system and made it appear as if the customer requested that the money be sent via wire transfer into the fraudulent accounts. After creating the request, Mercedes then accessed the company’s computer then approved the transfer, using a co-worker’s login and password.
Mercedes caused approximately 580 fraudulent wire transfers, totaling more than $2 million, from her company’s bank account to bank accounts and reloadable debit/credit accounts controlled by Mercedes’ relatives, friends or associates. She then used the money to pay personal expenses.
The count of accessing a protected computer without authorization to defraud carries a maximum potential penalty of five years in prison and a $250,000 fine. The count of money laundering carries a maximum penalty of 20 years in prison and a fine of $500,000. Sentencing is scheduled for Sept. 23, 2019.
U.S. Attorney Carpenito credited special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Wyatt Achord, and special agents of the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Special Agent in Charge Stephen Carroll, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.
Elmira Heroin Dealer Pleads GuiltyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Andrew Tingling, 39, of Elmira, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to conspiracy to possess with intent to distribute, and to distribute, one kilogram or more of heroin, and possession of a firearm as a convicted felon. The charges carry a minimum penalty of 10 years in prison, a maximum of life, and a fine of $10,000,000.
Assistant U.S. Robert A. Marangola, who is handling the case, stated that the charges stem from an investigation into the sale of heroin in the City of Elmira. On March 1, 2019, a search warrant was executed at a residence in Elmira. During the search, law enforcement officers seized $70,593 in U.S. currency, paraphernalia for the processing, packaging, and distribution of narcotics, approximately 318 grams of heroin, and a loaded .22 caliber handgun. Tingling was located and arrested inside the residence with a female.
The conviction was the culmination of an investigation on the part of the Elmira Police Department, under the direction of Chief Joseph Kane; the New York State Police Community Narcotics Enforcement Team, under the direction of Major Mary Clark; the Chemung County Sheriff’s Office, under the direction of Acting Sheriff William A. Schrom; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Office.
Sentencing is scheduled for October 7, 2019, at 10:15 a.m. Judge Siragusa.
# # # #Eastern Shore Drug Dealer Sentenced to 12 Years in Federal Prison for Distribution of Fentanyl AnaloguesRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Narada Walls, age 38, of Salisbury, Maryland, today to 12 years in federal prison, followed by three years of supervised release, for conspiracy to possess and to distribute fentanyl and fentanyl analogues. Fentanyl analogues are chemical compounds designed to have effects similar to fentanyl and can be just as deadly. Judge Russell also ordered that Walls must forfeit anything of value seized during the investigation, including $29,650 in cash.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
U.S. Attorney Robert K. Hur stated, “Drug traffickers are on notice that dealing in fentanyl increases their odds of federal prosecution. We’re also targeting drug dealers who buy fentanyl on the dark web and re-sell this poison to our citizens. Working together with our local, state, and federal partners, we are determined to reduce the number of opioid overdose deaths in Maryland.”
“Individuals like Narada Walls are producing and profiting from deadly addictions, and the snares of these addictions entrap more people every day,” said HSI Baltimore Acting Special Agent in Charge Cardell T. Morant. “This significant sentence takes one more access point off the street and means fewer network may be permitted to rampantly poison our community.”
According to his plea agreement, in fall 2017, law enforcement began an investigation into a drug trafficking organization operating on the Eastern Shore of Maryland and in Baltimore, which was responsible for importing and distributing fentanyl and fentanyl analogue substances. This investigation revealed that Narada Walls was part of the conspiracy and used assumed names and a fake e-mail address to purchase methoxyacetyl fentanyl directly from suppliers in China. Walls had this product shipped to addresses of his acquaintances along the Eastern Shore of Maryland to distance himself from the packages. Walls imported more than 1.5 kilograms of methoxyacetyl fentanyl in this manner.
In September and November, 2017, a confidential source purchased fentanyl analogue substances from Walls, at the direction of law enforcement. On each occasion, Walls brought the drugs to Baltimore, where he met with the source. During their interactions Walls discussed with the source the potency of this product and how it needed to be diluted with cutting agents or offered only to experienced drug users, or else overdoses could occur.
In December 2017, law enforcement executed a search warrant at Walls’ residence in Salisbury. Inside a safe found at the home was approximately 419 grams of methoxyacetyl fentanyl and approximately $18,650 in drug proceeds. Law enforcement recovered other drug-related paraphernalia from Walls’ bedroom, including a blender, a digital scale, and packaging materials.
Walls agreed that, in June 2017, he was in a relationship with a recovering heroin user. According to a witness, on June 14, 2017, Walls asked this woman to clean up the kitchen, which was the area where Walls mixed his drug product. In the process of cleaning up the blender in the kitchen, the victim ingested some of this fentanyl analogue product. The victim was subsequently found unresponsive on the kitchen floor, next to her minor child. Paramedics were called, and she was later pronounced dead. An autopsy determined that the woman’s death was caused by her exposure to this fentanyl analogue product.
United States Attorney Robert K. Hur commended HSI and Maryland State Police Gang Enforcement Unit East for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jason D. Medinger and Burden Walker, who prosecuted the case.
# # #
Drug Conspiracy Convictions of Former Fresno Deputy Police Chief Affirmed on AppealRead the Press Release
FRESNO, Calif. — The Ninth Circuit Court of Appeals affirmed the convictions of former Fresno deputy police chief Keith Foster, 55, for criminal conspiracies involving heroin and marijuana, U.S. Attorney McGregor W. Scott announced today.
On May 23, 2017, a federal jury in Fresno found Foster guilty of conspiracy to distribute and possess with intent to distribute heroin and conspiracy to distribute and possess with intent to distribute marijuana. On November 13, 2017, U.S. District Judge Anthony W. Ishii sentenced Foster to four years in prison. Foster then filed an appeal, challenging his two criminal convictions. The Ninth Circuit Court of Appeals rejected Foster’s claims and upheld his convictions.
The court found that Foster’s “phone calls and text messages with co-conspirators … sufficiently demonstrated Foster’s role in the conspiracy to distribute heroin.” Foster discussed heroin types, prices and other details with a supplier. The court also found that Foster’s calls with his nephew “sufficiently established his role in the conspiracy to distribute marijuana.” When Foster’s nephew was arrested with 6 pounds of marijuana in the trunk of his car, Foster said that he could have provided “cover” for him if he had been asked, and he also said that he would see what his “narc guys” could do for the nephew.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. Assistant U.S. Attorneys Melanie L. Alsworth and Henry Z. Carbajal III prosecuted the case.
Dominican National Sentenced for Aggravated Identity Theft and Stealing Government BenefitsRead the Press Release
BOSTON – A Dominican national was sentenced in federal court in Boston yesterday for identity theft, aggravated identity theft, theft of public money, and illegally reentering the United States after being deported.
Isidro Viscaino-Soto, a/k/a Ysidro Vizcaino, 59, a Dominican national residing in Boston, was sentenced by U.S. District Court Judge Patti B. Saris to two years and one day in prison and two years of supervised release. Viscaino-Soto will be subject to deportation proceedings upon completion of his sentence. In March 2019, Viscaino-Soto pleaded guilty to one count of identity theft, one count of aggravated identity theft, one count of theft of public money, and one count of illegal reentry of a deported alien. Viscaino-Soto was arrested and charged by complaint on April 17, 2018, and has been in custody since.
Law enforcement officers in Boston discovered Viscaino-Soto on April 12, 2018, and determined him to be illegally present in the United States. Viscaino-Soto was previously deported on July 31, 2000, after receiving a drug conviction. In addition, Viscaino-Soto used the Social Security number of a U.S. citizen from Puerto Rico in order to receive disability insurance, and in so doing, stole approximately $9,000 in federally-funded MassHealth benefits.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts, made the announcement. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit prosecuted the case.
Dominican National Charged with Identity TheftRead the Press Release
BOSTON – A Dominican national was arrested today in connection with using the identity of a U.S. citizen.
Wandil Mejia Jimenez, 30, a Dominican national residing in Dorchester, was indicted on one count of false representation of a Social Security number and one count of aggravated identity theft. Jimenez will appear in federal court in Boston later today.
According to the indictment unsealed today, in 2014, Mejia Jimenez fraudulently used a Social Security number that was not his when applying for a driver’s license with the Massachusetts Registry of Motor Vehicles.
The charge of false representation of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, to be served consecutive to any other sentence imposed, one year of supervised release and a fine of $250,000. Jimenez will be subject to deportation upon completion of his sentence. 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; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office; and Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Valuable assistance was provided by the United States Marshals Service for the District of Massachusetts. Assistant U.S. Attorney Bill Abely, Deputy Chief of Lelling’s Major Crimes Unit, is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
District Man Sentenced to 10 Years in Prison for Multi-Million Dollar Fraud and Money Laundering SchemesRead the Press Release
WASHINGTON - Michael A. Orji, 40, formerly of Washington, D.C., was sentenced today to 10 years in prison on federal charges stemming from his role in at least seven bank fraud schemes, involving at least 10 victims and more than $5.7 million in intended losses.
The announcement was made by U.S. Attorney Jessie K. Liu, John P. Selleck, Acting Assistant Director in Charge of the FBI’s Washington Field Office, and Jay N. Lerner, Inspector General for the Federal Deposit Insurance Corporation (FDIC).
Orji, a Nigerian national, pled guilty on Oct. 26, 2018, in the U.S. District Court for the District of Columbia, to one count of conspiracy to commit bank fraud and one count of conspiracy to commit money laundering. He was sentenced by the Honorable Chief Judge Beryl A. Howell. Orji also was ordered to pay a restitution judgment in the amount of $905,274.98 divided among five victims with uncompensated losses. As part of his plea agreement, Orji additionally agreed to forfeit $75,254 in previously seized funds and pay a forfeiture money judgment in the amount of $1,705,320.03. Following his prison term, he is required to surrender himself to ICE and cooperate with the deportation proceedings to Nigeria.
According to a statement of offense and related conduct acknowledged by Orji, he participated in an ongoing conspiracy from August 2015 through November 2017 to commit a variety of financial frauds, primarily involving stolen checks and business e-mail compromise (BEC) schemes. He then laundered the resulting proceeds through a network of fraudulent bank accounts, shell corporations, and co-conspirators in the District of Columbia and elsewhere. In a typical BEC scheme, a co-conspirator working online tricks a company or individual using “spoofed,” or fake, e-mails into transferring large sums of money into bank accounts controlled by those participating in the crime. Soon after the wire transfers are completed, the co-conspirators drain the bank accounts and launder the criminal proceeds.
In total, Orji participated in at least seven bank fraud schemes involving 10 victims and 15 fraudulent accounts opened and/or controlled by the defendant under false names. The schemes generated a total of $905, 274.98 in actual losses and $5,717,596.23 in intended losses.
He used false aliases and forged driver’s licenses in carrying out the crimes.
The victims of the defendant’s frauds included a public school system, a medical center, several small and medium-sized companies, an individual who happened to call the bank in order to take precautions before an international trip, an individual attempting to purchase a new home, and an individual saving for retirement. Meanwhile, according to the government’s evidence, Orji frequented casinos, which he also used to launder money, and lived in a luxury apartment under a borrowed name.
Orji was arrested on Nov. 20, 2017, and has been in custody ever since. On that day, federal agents executed a search warrant on Orji’s residence in the District of Columbia. During the search, , they found 14 fraudulent driver’s licenses corresponding to the defendant’s false aliases, 1 fraudulent Social Security card in the name of false alias, a printed-out copy of the Wikipedia article on “Bank Fraud,” a copy of a journal article on online banking fraud with handwritten markings, a book on creating false identities, and multiple burner phones.
The case was investigated by the FBI’s Washington Field Office and the Federal Deposit Insurance Corporation-Office of Inspector General. Assistance was provided by the U.S. Postal Inspection Service, U.S. Secret Service, the District of Columbia Office of the Inspector General, and the Metropolitan Police Department.
The case was prosecuted by Assistant U.S. Attorney Christopher B. Brown, with assistance from Paralegal Specialist C. Rosalind Pressley. Assistant U.S. Attorney Andrea Duvall, Computer Crime & Intellectual Property Section Trial Attorney W. Joss Nichols, former Assistant U.S. Attorney John Marston, and former Special Assistant U.S. Attorney Kyle Bateman also assisted in investigating and prosecuting the case.
District Man Pleads Guilty to First Degree Murder for Fatally Stabbing RunnerRead the Press Release
WASHINGTON – Anthony Crawford, 23, of Washington, D.C., pled guilty today to first degree murder for fatally stabbing a D.C. woman as she ran in Northwest Washington, U.S. Attorney Jessie K. Liu announced.
Crawford pled guilty on June 21, 2019, in the Superior Court of the District of Columbia, to one count of first degree murder while armed. The plea agreement, which is contingent upon the Court’s approval, calls for a sentence of 30 years and a fine of up to $250,000. As part of the plea deal, Crawford will also have to contribute between $100 and $5,000 to the Victims of Violent Crime Compensation Fund. The Honorable Judge Craig Iscoe scheduled sentencing for September 13, 2019.
According to the government’s evidence, on the evening of September 18, 2018, Crawford stole a kitchen knife from a local grocery store. Twenty minutes later, Crawford encountered the victim who was out for an evening run. Crawford attacked the victim at the intersection of 11th Street and P Street, stabbing her seven times; twice in the head, once in her face, three times in the neck, and once in the back, with the stolen knife. The victim was able to get away and ran into a nearby Chinese restaurant to escape Crawford’s attack. Crawford fled the area and threw the knife on the ground. Crawford also discarded several clothing items covered in his and the victim’s blood.
Several good Samaritans attempted to save the victim as she lay on the floor of the restaurant bleeding. The victim was transported to a local hospital to receive further medical treatment for the stab wounds. Over the course of the evening, her condition deteriorated and she died from the injuries.
Crawford has been in custody since his arrest on September 19, 2018.
In announcing the plea, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department, as well as paralegals Alesha Matthews and Kelly Blakeney, and Investigative Analyst Zachary McMenamin. She also expressed appreciation for the efforts of Assistant U.S. Attorney Katherine Earnest who prosecuted the matter.
Deputy Attorney General Recognizes South Dakota Federal Prosecutor for Superior Performance in Indian CountryRead the Press Release
WASHINGTON, D.C. – Troy R. Morley of the U.S. Attorney’s Office in the District of South Dakota was one of only 172 members of the Department of Justice nationwide recognized by Deputy Attorney General Jeffrey Rosen, and Executive Office for U.S. Attorneys (EOUSA) Director James Crowell, IV at the 35th Director’s Awards Ceremony in Washington D.C. on June 20, 2019.
The District of South Dakota was one of 31 districts represented at the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building. U.S. Attorney Ron Parsons attended the ceremony with Morley.
In his prepared remarks, Deputy Attorney General Jeffrey Rosen addressed the recipients and guests, saying, “Today’s honorees have earned the esteem of their colleagues. But most importantly, you have earned the gratitude of your fellow citizens — whose communities you have made safer, whose lives you have improved, and whose trust you have rewarded."
Morley was awarded the Director’s Award for Superior Performance in Indian Country. As an enrolled member of the Turtle Mountain Band of Chippewa and Tribal Liaison for the District of South Dakota, Morley's outreach to tribal communities has been pivotal in strengthening the District’s ties with tribal law enforcement officers, tribal courts, tribal social service agencies, and tribal decision makers. His body of work, including both zealous prosecutions and his Tribal Liaison outreach, exemplifies the very best of the Department of Justice's efforts in Indian Country. His status as an enrolled member of a federally recognized Indian tribe enhances his ability to build bridges and promote cooperation among all levels of Federal, State, and Tribal law enforcement.
Morley joined the U.S. Attorney’s office in Pierre, South Dakota, in May of 2012, and for over five years, he prosecuted violent crimes occurring on the Standing Rock Reservation in South Dakota. In June 2017, he transitioned to similar work on the Crow Creek and Lower Brule reservations. He has been an exemplary prosecutor, winning convictions and long prison sentences for murderers, child molesters, online predators, and domestic abusers.
Morley became the District's Tribal Liaison in March 2015, and in that role has had a deep and holistic impact on tribal communities throughout South Dakota. He has helped form working groups with state governments (both North Dakota and South Dakota) to implement reentry plans for individuals returning to the community after incarceration. He has worked closely with tribal officials on pilot programs to exercise special domestic violence jurisdiction. Morley also serves as a mentor in a special program he developed for the Pierre Indian Learning Center, regularly coaching students about how to succeed in life and avoid bullying behavior. Morley has been a key voice in discussions surrounding the selection of Special Assistant United States Attorneys assigned to four of the state’s nine reservations: Standing Rock, Sisseton- Wahpeton, Flandreau, and Rosebud. His partnerships have also helped identify cases leading to successful federal prosecutions. For instance, Morley’s work with a Tribal SAUSA has identified repeat domestic abusers, leading to an appreciable uptick in the prosecution of habitual domestic violence offenders harming women and children in our district.
“Troy Morley serves as a strong, dedicated, and essential Native American role model for federal prosecutors in Indian Country, the communities we serve, and the victims we seek to protect,” said U.S. Attorney Parsons. “I am very pleased, though certainly not surprised, that his stellar performance has been recognized with this coveted award.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Deputy Attorney General Recognizes Assistant U.S. Attorney Erin Blondel for Superior PerformanceRead the Press Release
RALEIGH – United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., is proud to announce that Assistant United States Attorney (AUSA) Erin Blondel was one of 172 members of the Department of Justice recognized by Deputy Attorney General Jeffrey Rosen, and Executive Office for U.S. Attorneys (EOUSA) Director James Crowell, IV at the 35th Director’s Awards Ceremony yesterday in Washington, D.C. AUSA Blondel, along with AUSA Eleanor Morales (Ms. Morales is formerly of the Eastern District and now with the Middle District of North Carolina), was presented a Director’s Award for Superior Performance as a Criminal AUSA.
The Eastern District of North Carolina was one of 31 districts represented at the ceremony held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In his prepared remarks, Deputy Attorney General Jeffrey Rosen addressed the recipients and guests, saying, “Today’s honorees have earned the esteem of their colleagues. But most importantly, you have earned the gratitude of your fellow citizens — whose communities you have made safer, whose lives you have improved, and whose trust you have rewarded.”
In his prepared remarks, EOUSA Director James Crowell said, “The Department of Justice is in truth a deployed force. Your work isn’t easy, but it is vital to the functioning and enduring nature of our democracy. As federal prosecutors, we are held to a higher standard, a standard that requires us to ensure that we uphold the rule of law and the fundamental rules of fairness in every trial, every settlement, every plea, and every legal argument in which we are involved.”
Assistant United States Attorneys Erin Blondel and Eleanor Morales were recognized for the successful prosecution of William Maurice Saddler in the first sex trafficking trial in this district. Saddler and four co-defendants repeatedly prostituted and exploited a fifteen-year-old child. Ms. Blondel and Ms. Morales were faced with many complex and novel legal issues, particularly concerning the young age of the victim. The trial featured dozens of exhibits and testimony by eighteen witnesses, including from the victim, all four co-defendants, three “johns,” and a world-renowned expert in child exploitation. After brief deliberation, the jury convicted Saddler of sex trafficking and he was later sentenced to 40 years in prison. (See press release). The District Court ordered hundreds of thousands of dollars in restitution to the victim under the human trafficking restitution statute. (See press release).
United States Attorney Higdon commented, “Congratulations to AUSAs Erin Blondel and Eleanor Morales on this well-earned and deserved recognition. This award recognizes AUSAs who have distinguished themselves through the outstanding performance of their duties in criminal matters – and they have done just that. Due to their exemplary work, Saddler received a 40-year sentence, ensuring that he cannot hurt other children – and his nearly half-million dollar restitution order is a small step on the victim’s path to recovery. AUSAs Blondel and Morales have significantly contributed to the successful accomplishment of the mission of this USAO and the Department of Justice as a whole – making the Eastern District of North Carolina a safer place for its citizens.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Denver Man Sentenced to Federal Prison for Ponzi Scheme That Defrauded 175 Investors out of Nearly $20 MillionRead the Press Release
DENVER – Daniel B. Rudden, age 72 of Denver, Colorado, was sentenced yesterday by U.S. District Court Judge Christine M. Arguello to serve 121 months (just over 10 years) in federal prison, followed by 3 years on supervised release for mail fraud after he defrauded 175 investors out of more than $19 Million, announced U.S. Attorney Jason Dunn and FBI Denver Field Office Special Agent in Charge Dean Phillips. Rudden was also ordered to pay restitution of $19,609,905.21 to victims of his Ponzi scheme. Rudden appeared at the hearing free on bond and was remanded at the hearing’s conclusion.
According to court documents, Rudden was the President and sole owner of Financial Visions, Inc. (FV). FV’s business model was based on taking assignments on life insurance policies in order to pay for funeral expenses. When a family experienced the death of a family member and could not afford the funeral expenses, FV would pay the funeral home and/or cemetery for those expenses and take an assignment on the deceased’s life insurance proceeds. When the insurance company paid the proceeds, it would pay FV directly for the funeral expenses that FV had fronted. FV charged the family of the deceased a 4 to 5 percent fee for this service.
Individuals who decided to invest in FV received a promissory note signed by the defendant. Through the promissory note, the defendant promised to pay back to the investor the principal amount invested plus interest. Most investors were promised 12% simple interest per year on their principal amount invested, to be paid on a quarterly basis.
Over the years, the defendant continued to take in money from new investors, but the number of funeral homes using FV’s services did not continue to grow at a commensurate rate. As a result, FV owed investors more and more in interest payments while FV was not making a profit sufficient to sustain such payments. The defendant ultimately began using later investors’ funds to make the interest payments to earlier investors. The Ponzi scheme ended up defrauding 175 investors out of more than $19 million. More than 65 victims lost over $100,000 each, and two people lost over $1 million.
The scheme came to a head when the defendant stopped being able to pay out “interest” and could not give investors a refund of their principal balance when demanded. Some investors reported the defendant to state and federal authorities. On July 9, 2018, the defendant himself emailed his investors and admitted that FV had become a Ponzi scheme. As stated in the plea agreement, the government maintains that, based on profit and loss statements, FV was not a profitable business model from its inception.
“This is a scheme that was particularly egregious because the defendant took advantage of people at one of their most emotional times – following the loss of a loved one,” said U.S. Attorney Jason Dunn. “The sentence here appropriately reflects that harm.”
“The FBI is committed to aggressively pursuing those who deceive innocent investors by creating complex white-collar fraud schemes. Duplicitous schemes devised to obtain funds from our community’s citizens for personal gain is a felony,” said FBI Denver Special Agent in Charge Dean Phillips. “The recent sentencing of Daniel Rudden should deter others who engage in this type of crime."
The matter was investigated by the FBI with assistance by the U.S. Postal Inspection Service. The defendant was prosecuted by Assistant U.S. Attorney Martha A. Paluch, Chief of the Economic Crime Section, Assistant U.S. Attorney Rebecca S. Weber, and Special Assistant U.S. Attorney Jason Slothouber of the Colorado State Attorney General’s Office. Financial analysts from the Federal Bureau of Investigations, the United States Attorney’s Office, and the Colorado State Attorney General’s Office provided invaluable assistance to this prosecution.
Delaware Federal Trial Team Honored for Landmark Cyberstalking Resulting in Death ProsecutionRead the Press Release
WILMINGTON, Del. – United States Attorney David C. Weiss announced that the U.S. Department of Justice honored the trial team which prosecuted the country’s first cyberstalking resulting in death case by awarding them the prestigious Director’s Award for Superior Performance by a Litigative Team on June 20, 2019. Five employees of the U.S. Attorney’s Office (USAO) for the District of Delaware, together with their investigative counterparts from the Federal Bureau of Investigation and Delaware State Police were among ten trial teams nationwide so recognized at the 35th Executive Office for U.S. Attorneys (EOUSA) Director’s Awards Ceremony in Washington, D.C.
The award was the result of the team’s work in United States v. Matusiewicz, et al. tried in U.S. District Court for the District of Delaware. The prosecution team honorees, from top to bottom in the photo, are:
- Shawn A. Weede, Criminal Chief, USAO
- Millard Greer, Lieutenant, Delaware State Police
- Joseph P. Gordon, Supervisory Senior Resident Agent, FBI
- Edward J. McAndrew, former Assistant U.S. Attorney, USAO
- Jamie M. McCall, Assistant U.S. Attorney, USAO
- Christine C. Oliver, Special Agent, FBI
- Susan P. Alfree, Victim/Witness Coordinator, USAO
- Sherry Kaminski, Legal Assistant, USAO
- Barbara Lotharp, Litigation Support Specialist, USAO
On the morning of February 11, 2013, the lobby of the New Castle County Courthouse in Wilmington, Delaware became a shooting gallery as Thomas Matusiewicz – the husband of Defendant Lenore and the father of Defendants David and Amy – shot and killed his former daughter-in-law, Christine Belford, and her friend, Laura “Beth” Mulford. Thomas also shot two Capitol Police officers, who were providing security at the courthouse, before taking his own life. This brutal criminal act touched off a lengthy investigation, which uncovered evidence of Defendants’ three-year stalking campaign designed to psychologically torture and intimidate Ms. Belford – the mother of David Matusiewicz’s three biological children. Among other things, Defendants publicly and falsely accused Ms. Belford of sexually molesting her own children and utilized third parties to keep her under constant surveillance. These actions led Ms. Belford and her family to live in a constant state of fear, and ultimately resulted in Ms. Belford’s death.
Following a five-week trial in the summer of 2015, where the government called approximately 70 witnesses and admitted over 700 trial exhibits, Defendants were convicted on all charges, including cyberstalking resulting in death. Each Defendant was sentenced to life imprisonment, and on appeal the Court of Appeals for the Third Circuit upheld their convictions in a sweeping precedential opinion.
U.S. Attorney David C. Weiss commented, “Cyberstalking is a form of psychological terror that deeply impacts its victims, and the Matusiewicz cyberstalking prosecution was a watershed case of national importance. I am proud to offer congratulations to the entire trial team for winning the Director’s Award for Superior Performance by a Litigative Team. This award is among the most prestigious and competitive awards given by the U.S. Department of Justice, and is the only award that includes those who have left federal government service. The long-term commitment and personal partnerships required to successfully prosecute the Matusiewicz family represent the best of Delaware law enforcement. We truly value these relationships.
While the Matusiewicz case was the first of its kind, our commitment to the victims of online terror campaigns continues. Individuals who engage in cyberstalking are on notice that the U.S. Department of Justice will continue such prosecutions to the fullest extent of the law.”