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Thursday 9 May 2019
I.T. Specialist Sentenced to 3 Years in Prison for Hacking into Servers of North Suburban CompanyRead the Press Release
CHICAGO — An information technology specialist has been sentenced to three years in federal prison for hacking into the servers of a north suburban company where he formerly worked as a contractor.
EDWARD SOYBEL, 35, of Chicago, illegally accessed the servers of Lake Forest-based W.W. Grainger Inc., on multiple occasions in late 2016. Soybel intentionally caused damage to Grainger’s automated inventory management program, which operates on-site dispensing machines for customers throughout the United States. The dispensing machines provide secure access to durable products, such as safety equipment. Soybel had worked as a technical support contractor at Grainger’s facility in Niles until he was terminated in early 2016.
A federal jury last year convicted Soybel on all 12 counts against him, including ten counts of intentionally causing damage to protected computers, one count of attempting to cause damage to protected computers, and one count of attempting to access a protected computer without authorization.
Soybel has been in custody since December 2018, after he recorded a video of himself issuing threats of violence to law enforcement. Before imposing the sentence Wednesday in federal court, U.S. District Judge Matthew F. Kennelly stated that he considered Soybel’s threats to be a significant aggravating factor, and he increased the sentence due to the gravity of the threats.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The Chicago Police Department provided valuable assistance.
“Defendant’s crimes were not an isolated lapse of judgment or one-off outburst,” Assistant U.S. Attorney Nicholas J. Eichenseer argued in the government’s sentencing memorandum. “He essentially declared cyber war on Grainger, not out of principle or for financial gain, but out of spite.”
Evidence at trial revealed that Soybel repeatedly gained unauthorized access to a secure computer network of Grainger, a multi-national industrial supply company. The network was an inventory-management system that operated a nationwide grid of dispensing machines to securely provide tools and safety equipment at customer sites. Soybel remotely broke into the computer system by stealing and then using his former co-workers’ usernames and passwords. Once inside the network, Soybel deleted millions of database records and reset the passwords.
The deletions caused outages of the system, locked out users, and temporarily impaired the dispensing machines. Soybel’s attacks began in July 2016 and continued for several months. Grainger incurred at least $300,000 in costs responding to the cyber-attacks.
Hudson County Woman Convicted at Trial of Enslaving Sri Lankan Woman for over Nine YearsRead the Press Release
CAMDEN, N.J. – A Hudson County, New Jersey, woman was convicted today of charges of forced labor, alien harboring for financial gain, and marriage fraud, U.S. Attorney Craig Carpenito and Assistant Attorney General Eric Dreiband of the Civil Rights Division announced.
Alia Imad Faleh Al Hunaity, a/k/a “Alia Al Qaternah,” 43, was found guilty on all counts of the indictment against her following a six-day trial before U.S. District Judge Robert B. Kugler in Camden federal court. The jury deliberated for two hours before returning the guilty verdicts.
“The defendant in this case treated the victim as a slave,” U.S. Attorney Carpenito said. “Al-Hunaity kept the victim in this country illegally and hid her away, in order to force her to perform household work for Al-Hunaity without pay, privacy, or the ability to move about freely. Through the guilty verdicts in this case and other prosecutions like it, this office continues to work to ensure that the evil of human trafficking is brought out from hiding and into the light so that it may be punished appropriately.”
“The defendant took advantage of the victim for years, forcing her to live in terrible conditions, work without pay, and then enter into a fraudulent marriage to continue the cycle of abuse,” Assistant Attorney General Dreiband said. “The Department of Justice will continue to investigate and vigorously prosecute forced labor cases so that victims can obtain justice.”
According to documents filed in this case and the evidence at trial:
Hunaity brought the victim, a Sri Lankan national, to the United States on a temporary visa in 2009 to perform domestic work. Hunaity caused the victim to overstay her visa and remain in the United States illegally for over nine years. Hunaity forced the victim to cook and clean her homes in Woodland Park and Secaucus, New Jersey, and to care for her three children, all without pay. She limited the victim’s interactions with the world outside of Hunaity’s homes. During this time, Hunaity required the victim to sleep on a bed in a public space in Hunaity’s homes, including in the kitchen. In 2018, Hunaity forced the victim to marry her so that the victim could obtain legal residence and Hunaity could continue to force her to work without fear of the victim being deported.
The forced labor charge carries a maximum penalty of 20 years in prison and a maximum fine of $250,000. Sentencing is scheduled for Sept. 4, 2019.
U.S. Attorney Carpenito and assistant Attorney General Dreiband credited special agents of U.S. Homeland Security Investigations, Newark Division, under the direction of Special Agent in Charge Brian Michael, and special agents of the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s verdicts.
This case was prosecuted in conjunction with the interagency Anti-Trafficking Coordination Team initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies. U.S. Citizenship and Immigration Services’ Newark Fraud Detection and National Security Unit also provided support.
The government is represented by Assistant U.S. Attorneys Andrew Macurdy and Alyson M. Oswald of the U.S. Attorney’s Office for the District of New Jersey, Criminal Division, and Trial Attorney Kate Hill of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Hudson County Woman Convicted at Trial of Compelled Labor of Sri Lankan Woman for over Nine YearsRead the Press Release
A Hudson County, New Jersey, woman was convicted today on charges of forced labor, alien harboring for financial gain, and marriage fraud, announced Assistant Attorney General Eric Dreiband of the Civil Rights Division and U.S. Attorney Craig Carpenito for the District of New Jersey.
Alia Imad Faleh Al Hunaity, aka “Alia Al Qaternah,” 43, was found guilty on all counts of the indictment against her following a six-day trial before U.S. District Judge Robert B. Kugler in Camden federal court. The jury deliberated for two hours before returning the guilty verdict.
“The defendant took advantage of the victim for years, forcing her to live in terrible conditions, work without pay, and then enter into a fraudulent marriage to continue the cycle of abuse,” said Assistant Attorney General Eric Dreiband. “The Department of Justice will continue to investigate and vigorously prosecute forced labor cases so that victims can obtain justice.”
“The defendant in this case treated the victim as a slave,” U.S. Attorney Carpenito said. “Al-Hunaity kept the victim in this country illegally and hid her away, in order to force her to perform household work for Al-Hunaity without pay, privacy, or the ability to move about freely. Through the guilty verdicts in this case and other prosecutions like it, this office continues to work to ensure that the evil of human trafficking is brought out from hiding and into the light so that it may be punished appropriately.”
According to documents filed in this case and the evidence at trial, Hunaity brought the victim, a Sri Lankan national, to the United States on a temporary visa in 2009 to perform domestic work. Hunaity caused the victim to overstay her visa and remain in the United States illegally for over nine years. Hunaity forced the victim to cook and clean her homes in Woodland Park and Secaucus, New Jersey, and to care for her three children, all without pay. She further limited the victim’s interactions with the world outside of Hunaity’s homes. During this time, Hunaity required the victim to sleep on a bed in a public space in Hunaity’s homes, including in the kitchen. In 2018, Hunaity forced the victim to marry her so that the victim could obtain legal residence and Hunaity could continue to force her to work without fear of the victim being deported.
The forced labor charge carries a maximum penalty of 20 years in prison and a maximum fine of $250,000. Sentencing is scheduled for Sept. 4.
U.S. Homeland Security Investigations, Newark Division, under the direction of Brian Michael, led the investigation.
This case was prosecuted in conjunction with the interagency Anti-Trafficking Coordination Team initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
The government is represented by Assistant U.S. Attorneys Andrew Macurdy and Alyson M. Oswald of the U.S. Attorney’s Office for the District of New Jersey, Criminal Division, and Trial Attorney Kate Hill of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Honduran Drug Trafficker Sentenced to 33 Years in PrisonRead the Press Release
ALEXANDRIA, Va. – A Honduran man was sentenced today to 33 years in prison for leading a drug trafficking organization that smuggled at least thousands of kilos of cocaine into the United States over the last decade.
According to court records and evidence presented at trial, Arnulfo Fagot-Maximo, 58, was the leader of a drug trafficking organization based in the La Mosquitia region of the Department of Gracias a Dios, Honduras. His organization was a critical link between Colombian cocaine suppliers and other major Honduran traffickers. For over a decade, Fagot-Maximo received cocaine along the Mosquitia coast from Colombia by “go fast” boats, small aircraft, and submersible vessels in quantities ranging from a few hundred to several thousand kilograms per delivery. Most of this cocaine was transferred to the Montes-Bobadilla organization in Francia, Honduras, where it was received by other traffickers. Eventually the cocaine was transported by land through Honduras and Guatemala, and then it was delivered to the Mexican cartels for importation into the United States. Fagot-Maximo received tens of millions of dollars in U.S. currency for the sale and delivery of this cocaine.
The case was investigated by the DEA as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Harpoon through DEA’s HIDTA Task Force in Annandale, Virginia. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Brian A. Benczkowski, Assistant Attorney General for the Criminal Division of the Department of Justice, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., and Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement after sentencing by U.S. District Judge Liam O’Grady.
Assistance in the investigation and prosecution was provided by the U.S. Attorney’s Offices for the Southern District of New York, the Middle District of Florida, and the Southern District of Florida. Assistance was also provided by the U.S. Coast Guard and the Honduran National Police. Assistant U.S. Attorneys James L. Trump, Thomas W. Traxler and DOJ Trial Attorney Anthony Aminoff 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. 1:15-cr-290.
Honduran Drug Trafficker Sentenced to 33 Years in PrisonRead the Press Release
A Honduran man was sentenced today to 33 years in prison for leading a drug trafficking organization that smuggled at least thousands of kilos of cocaine into the United States over the last decade.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia, Special Agent in Charge Jesse R. Fong of the Drug Enforcement Administration’s (DEA) Washington Field Division, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office, Special Agent in Charge Raymond Villanueva of U.S Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C. and Superintendent of Virginia State Police Colonel Gary T. Settle made the announcement.
Arnulfo Fagot-Maximo, 58, was sentenced by U.S. District Judge Liam O’ Grady for the Eastern District of Virginia. According to court records and evidence presented at trial, Fagot-Maximo was the leader of a drug trafficking organization based in the La Mosquitia region of the Department of Gracias a Dios, Honduras. His organization was a critical link between Colombian cocaine suppliers and other major Honduran traffickers. For over a decade, Fagot-Maximo received cocaine along the Mosquitia coast from Colombia by “go fast” boats, small aircraft and submersible vessels in quantities ranging from a few hundred to several thousand kilograms per delivery. Most of this cocaine was transferred to the Montes-Bobadilla organization in Francia, Honduras, where other traffickers received it. Eventually the cocaine was transported by land through Honduras and Guatemala, and then it was delivered to the Mexican cartels for importation into the United States. Fagot-Maximo received tens of millions of dollars in U.S. currency for the sale and delivery of this cocaine.
The case was investigated by the DEA as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Harpoon through DEA’s HIDTA Task Force in Annandale Virginia. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Assistance in the investigation and prosecution was provided by the U.S. Attorney’s Offices for the Southern District of New York, the Middle District of Florida, and the Southern District of Florida. Assistance was also provided by the U.S. Coast Guard and the Honduran National Police. Assistant U.S. Attorneys James L. Trump, Thomas W. Traxler and Trial Attorney Anthony Aminoff with the Narcotic and Dangerous Drug Section prosecuted the case.
Group Home Supervisor Sentenced for Sex Trafficking a MinorRead the Press Release
PROVIDENCE – A supervisor at a group home contracted by DCYF who repeatedly sex trafficked a missing 17-year-old girl was sentenced today to 10 years in federal prison, announced United States Attorney Aaron L. Weisman, Special Agent in Charge of Homeland Security Investigations Peter C. Fitzhugh, and Cranston Police Chief Colonel Michael J. Winquist.
According to court documents and information presented to the Court, in March and April 2017, Reysean Williams, 28, with the assistance of another individual, Leonardo Gomes, 20, of Pawtucket, sex trafficked the 17-year-old in Rhode Island, Massachusetts and on Long Island, New York, by posting advertisements and pictures of the teenager on Backpage.com. The ads were discovered by agents from Homeland Security Investigations and Cranston Police Department detectives.
Williams first encountered Gomes when Williams was Gomes’ supervisor in a Pawtucket residential group home contracted to provide services in DCYF care. After Gomes was released from DCYF custody, Williams recruited Gomes to participate in the sex trafficking operation. Williams often used a group home van to meet with Gomes and collect the proceeds from the sex trafficking of the 17-year-old.
To determine where the victim was being trafficked, agents responded to a telephone number listed in the ads on Backpage.com to arrange a commercial sexual encounter with the 17-year-old at an apartment established by Cranston Police. The victim and a female companion were taken into custody when they arrived at the apartment. Gomes was found sitting in a vehicle across from the apartment and was arrested. Williams was located and arrested about a week later.
The investigation determined that in early March 2017, the victim met Williams and agreed to do “plays” for him as a way of earning cash. The victim told investigators that from mid-March to mid-April she usually did around 6 plays per day, but sometimes as many as 10 per day. The victim told investigators that often times Gomes would drive her to various locations to perform sex acts in exchange for money in the Providence metropolitan area and in Massachusetts in a vehicle supplied by Williams. The victim was also driven by Gomes and Williams to locations as far away as the North Shore of Boston and on Long Island to perform sex acts in exchange for payment. Hotel rooms were paid for in cash by Williams. All of the money paid to the 17-year-old was turned over to Gomes and Williams, none of which was shared with the victim.
Reysean Williams pleaded guilty on November 30, 2018, to sex trafficking a child. He was sentenced today to 10 years in federal prison to be followed by 5 years supervised release.
Leandro Gomes pleaded guilty on November 30, 2018, to travelling in interstate commerce with intent to engage in criminal sexual activity. He was sentenced on March 15, 2019, to 36 months imprisonment to be followed by 10 years supervised release.
The cases were prosecuted by Assistant U.S. Attorneys Terrence P. Donnelly and John P. McAdams.
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Griffith Man Sentenced to 84 Months in PrisonRead the Press Release
HAMMOND- Mohammad Amara, 28, of Griffith, Indiana, was sentenced by Senior U.S. District Court Judge James T. Moody upon his plea of guilty to possession of a firearm by a felon, announced U.S. Attorney Kirsch.
Amara was sentenced to 84 months in prison.
According to documents in the case, on March 20, 2018, Amara was arrested in Griffith, Indiana, following possessing a firearm. At the time of his arrest, Amara was planning a home invasion robbery and possessed a backpack containing latex gloves, a hoodie, and other clothing to be used during the robbery. Amara was on parole for a prior robbery conviction at the time of his arrest. Amara has six prior felony convictions, including convictions for robbery, controlled substance possession, forgery, and three theft convictions.
This case was investigated by ATF. This case was prosecuted by Assistant United States Attorney Nicholas J. Padilla.
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Goshen Man Sentenced to 61 Months in PrisonRead the Press Release
SOUTH BEND –Marcell Spencer, age 23, of Goshen, Indiana, was sentenced before United States District Court Judge Jon E DeGuilio, upon his plea of guilty to possessing with intent to distribute marijuana and possession of firearms in furtherance of a drug trafficking crime, announced U. S. Attorney Kirsch.
Spencer was sentenced to 61 months in prison followed by 3 years of supervised release.
According to documents in this case, Mr. Spencer entered a guilty plea for possession with intent to distribute marijuana and possession of firearms in furtherance of a drug trafficking crime. The charges arose out of a search warrant executed in May of 2018 at the defendant’s home where marijuana and weapons were found.
The case was investigated by the ATF with the assistance of the Goshen Police Department and was handled by Assistant United States Attorney Frank E. Schaffer.
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Geneseo, ND, Man Sentenced for Migratory Bird Treaty Act ViolationsRead the Press Release
Fargo – United States Attorney Drew H. Wrigley announced that on May 8, 2019, United States Magistrate Judge Alice R. Senechal sentenced Jesse James Mertins, age 40, Geneseo, ND, to pay a $15,000 fine and serve five years of probation for violations of the Migratory Bird Treaty Act.
In 2017, Mertins set 19 pole traps around an enclosure in which Mertins raised exotic waterfowl to protect his investment in these waterfowl from predatory birds. Agents from United States Fish and Wildlife Service recovered at least 26 migratory birds from in and beneath these pole traps, including ten Great horned owls, one Sharp-shinned hawk, one Cooper’s hawk, one great blue heron, one hooded merganser, seven common grackles, four American robins, and one yellow-headed blackbird. All of these birds are protected by the Migratory Bird Treaty Act.
U.S. Attorney Drew H. Wrigley stated, “The facts of this case are particularly egregious given the large number of pole traps, the small area in which those traps were placed, and the substantial number of migratory birds killed, including more than a dozen birds of prey. This was an important investigation, and we are committed to investigating and pursuing similar cases up ahead.”
This case was investigated by United States Fish and Wildlife Service.
Assistant United States Attorney Megan A. Healy prosecuted the case.
Gary Man Sentenced to 174 Months in PrisonRead the Press Release
HAMMOND- Michael Terrance Henderson, 43, of Gary, Indiana, was sentenced by Senior U.S. District Court Judge James T. Moody after pleading guilty to possession of a firearm with an obliterated serial number and possession of a stolen firearm, announced U.S. Attorney Kirsch.
Henderson was sentenced to 174 months in prison followed by 3 years of supervised release.
According to documents in the case, on April 26, 2018, the Gary, Indiana Police Department responded to a disturbance at a Gary residence in which Henderson was alleged to have threatened to kill another person in the home with a firearm. During the disturbance, Henderson was wearing a bullet-proof vest and possessed a semi-automatic pistol with an obliterated serial number and an extended thirty-round magazine, in addition to possessing another firearm that he had stolen from someone in the home. Henderson has six prior felony convictions, including three prior convictions for robbery and prior convictions for escape, intimidation, and theft.
This case was investigated by the ATF/HIDTA Task Force and the Gary, Indiana Police Department. This case was prosecuted by Assistant United States Attorneys Nicholas J. Padilla and Thomas M. McGrath.
Four Texas Men Arrested and One Fugitive Sought for their Roles in Scheme to Launder Millions from Business Email Compromise FraudRead the Press Release
A federal grand jury indictment unsealed in Austin charges five Texas residents, all Nigerian nationals, for their roles in laundering millions derived from Business Email Compromise (BEC) schemes. Two Austin residents, also Nigerian nationals, pleaded guilty earlier this year for their roles in the scheme.
That announcement was made today by U.S. Attorney John F. Bash; Special Agent in Charge Shane Folden, Homeland Security Investigations (HSI), San Antonio; and, Inspector in Charge Adrian Gonzalez, U.S. Postal Inspection Service (USPIS), Houston Division.
Bameyi Kelvin Omale, a 31-year-old resident of Houston; Nnamdi Nwosu, a 32-year-old resident of Houston; Chinonso Agbaji, a 29-year-old resident of Houston; Igho Calaba, a 25-year-old resident of Austin; and Chibuzor Stanley Uba, a 30-year-old resident of San Antonio, were all charged with one count of money laundering conspiracy. Nwosu, Agbaji, and Calaba were also each charged with one count of passport fraud in furtherance of the money laundering conspiracy. Yesterday and today, federal authorities arrested Omale, Agbaji, Calaba and Uba. Nwosu remains a fugitive in this case.
According to the indictment, the funds were largely derived from BEC schemes perpetrated against U.S. and foreign victims. Over $10 million was allegedly sent by victims to accounts controlled by the defendants, who were able to take in excess of $3 million before law enforcement or financial institutions stopped the fraudulent transfers. In a BEC scheme, scammers target businesses and individuals making wire transfer payments, often targeting employees with access to company finances. The scammers trick the employees into making wire transfer payments to bank accounts thought to belong to trusted partners—except the money ends up in accounts controlled by the fraudsters. Sometimes the scammers use computer intrusion techniques to alter legitimate payment request emails, changing the recipient bank accounts. Sometimes they send spoofed emails from email addresses similar to trusted partners.
Whatever the BEC method used, the scammers need bank accounts controlled by coconspirators to collect the stolen money. The indictment alleges that the conspirators acquired or controlled dozens of bank accounts opened in the United States, including in Austin, TX, utilizing fraudulent identification documents, including fraudulent foreign passports in fake names. The indictment alleges that once the funds were fraudulently procured and deposited into these bogus accounts, the defendants worked quickly to withdraw or transfer the funds.
The indictment further alleges that some of the conspirators also received funds sent by the victims of romance fraud.
In February 2019, Joseph Odibobhahemen, a 28-year-old resident of Austin, pleaded guilty to one count of money laundering conspiracy. In December 2018, Nosa Onaghise, a 32-year-old resident of Austin, pleaded guilty to one count of passport fraud in furtherance of the money laundering conspiracy. As alleged in court documents, they were acting as part of the same scheme to launder funds from BEC fraud. Both remain in federal custody awaiting sentencing.
Money laundering conspiracy calls for up to 20 years in federal prison upon conviction; passport fraud calls for up to 10 years in federal prison upon conviction.
This indictment resulted from a continuing investigation by HSI and USPIS. The FBI also assisted in the investigation as did the California Highway Patrol. The U.S. Attorney’s Offices for the Southern District of Texas and the Southern District of New York also provided assistance. Assistant U.S. Attorneys Michael Galdo and Keith Henneke are prosecuting this case on behalf of the Government.
Anyone with information as to the whereabouts of Nnamdi Nwosu is asked to contact U.S. Immigration and Customs Enforcement (ICE). ICE encourages the public to report any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing impaired users can call TTY 802-872-6196.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Fort Dodge Woman Pleads Guilty to Meth ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine pled guilty May 8, 2019, in federal court in Sioux City.
Chelsea Kay Collins, 30, from Fort Dodge, Iowa, was convicted of one count of conspiracy to distribute methamphetamine and one count of distributing methamphetamine.
At the plea hearing, Collins admitted her involvement in a conspiracy that distributed methamphetamine in the Fort Dodge area from January 2018 through September 2018. In four separate transactions in July 2018, Collins distributed and aided others in the distribution of over 35 grams of pure methamphetamine to individuals cooperating with law enforcement.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Collins remains in custody of the United States Marshal pending sentencing. Collins faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $5,000,000 fine, and at least four years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Fort Dodge Police Department, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Webster County, Iowa Sheriff’s Office, and Iowa Division of Criminal Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-3041.
Follow us on Twitter @USAO_NDIA.
Former United Way of Santa Rosa County Head Pleads Guilty to Embezzling Money from Charity and Tax EvasionRead the Press Release
PENSACOLA, FLORIDA – Guyland W. Thompson, 65, of Milton, pleaded guilty today to twenty counts of wire fraud and three counts of tax evasion stemming from his embezzlement of funds from United Way of Santa Rosa County (“UWSRC”). Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the guilty plea.
His sentencing hearing is currently set for July 29, 2019, at 1:00 p.m. The government intends to forfeit all proceeds of Mr. Thompson’s fraud, including approximately $221,000 that has already been seized from his bank accounts.
Assistant U.S. Attorney Alicia Forbes is prosecuting the case after a joint investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation.
Between at least 2011 and 2018, Thompson embezzled money belonging to UWSRC while he was employed as its Executive Director. Thompson devised a complex scheme where he kept a portion of money intended for use to pay UWSRC’s regular bills and expenses by replacing it with other donation checks no one at UWSRC knew about. By conducting a series of complicated financial transactions to cover his tracks, Thompson embezzled over $650,000 from UWSRC.
Thompson maintained his scheme by making fraudulent misrepresentations to UWSRC’s board members and employees, its parent nonprofit United Way Worldwide, and bank personnel. He also took steps to prevent internal or external audits of UWSRC from occurring that would have uncovered his fraud. Thompson then failed to report to the Internal Revenue Service the extra income from his embezzlement scheme, which ranged from approximately $86,000 to $99,000 in a given year.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Union Treasurer Pleads Guilty to Embezzling at Least $82,000 in Union FundsRead the Press Release
Baltimore, Maryland – Annette Elizabeth Jones, age 45, of Port Deposit, Maryland, pleaded guilty today to bank fraud in connection with a scheme to embezzle funds from the labor union where she worked. Jones entered her guilty plea on May 7, 2019.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; District Director Mark Wheeler of the U.S. Department of Labor, Office of Labor - Management Standards; and Inspector General Kim R. Lampkins, Special Agent in Charge, Mid Atlantic Field Office, of the U.S. Department of Veterans Affairs.
According to her plea agreement, Jones is the former Treasurer of the American Federation of Government Employees (“AFGE”) Local Union 331, which represents approximately 760 employees of the Department of Veterans Affairs (VA) Medical Center in Perry Point, Maryland.
As detailed in her plea agreement, Jones executed two fraud schemes through which she embezzled at least $82,180.73 from the Union. First, from July 2012 through July 2015, Jones stole at least $80,944.80 in Union funds by forging her colleagues’ signatures on 335 Union checks that she wrote to herself and then cashed or deposited those checks at multiple financial institutions. Second, from January 2014 through July 2015, Jones used a Union-issued credit card to pay for $1,235.93 in personal expenses using Union funds on 20 separate occasions.
Jones admitted that she took steps to conceal the scheme from the Union. For example, not only did Jones have exclusive control of the Union’s checkbook, but she also maintained sole custody of a laptop computer that she was issued by the Union to manage its financial records on Union-purchased accounting software. In that software, Jones frequently recorded false information regarding the business purpose of the fraudulent Union checks she forged and negotiated, or recorded no information at all about the business purpose of such checks. Jones also provided false information about the Union’s finances to the Executive Board and the Union membership, caused reports to be submitted to the federal government that falsely certified the amount of money she received from the Union, and lied to the Union’s independent auditor.
Jones’ fraud was discovered in July 2015, when the Union’s Vice President overheard a phone call in which Jones attempted to purchase a smartphone for a family member using the credit card she had been issued to pay for Union expenses only. The Vice President then reported the conversation to the Union’s President. The President later conducted a search of Jones’s office and found two uncashed Union checks made payable to Jones on which it appeared that the President’s signature had been forged. The Union President then met with the manager of the bank where the Union’s account was held, and reviewed each of the checks to Jones that had been drawn on the Union’s account during the preceding three months. The Union President’s signature had been forged on all of them. When the manager provided the President with copies of the Union’s monthly credit-card account statements, the President also discovered that Jones had made a number of personal charges on her Union-issued card.
Jones was immediately removed from her position as Union Treasurer and resigned from the VA soon thereafter. Although Jones had agreed to return her Union-issued laptop at the time she was removed as Treasurer, Jones admitted that she never returned it.
As part of her plea agreement, Jones will be required to pay restitution in the full amount of the loss, which the parties agree is $82,180.73.
Jones and the government have agreed that, if the Court accepts the plea agreement, Jones will be sentenced to two years in federal prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for September 10, 2019 at 1:00 p.m.
United States Attorney Robert K. Hur commended the DOL and VA-OIG for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Matthew J. Maddox, who are prosecuting the case.
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Former Union Treasurer Pleads Guilty to Embezzling at Least $82,000 in Union FundsRead the Press Release
Baltimore, Maryland – Annette Elizabeth Jones, age 45, of Port Deposit, Maryland, pleaded guilty today to bank fraud in connection with a scheme to embezzle funds from the labor union where she worked. Jones entered her guilty plea on May 7, 2019.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; District Director Mark Wheeler of the U.S. Department of Labor, Office of Labor - Management Standards; and Inspector General Kim R. Lampkins, Special Agent in Charge, Mid Atlantic Field Office, of the U.S. Department of Veterans Affairs.
According to her plea agreement, Jones is the former Treasurer of the American Federation of Government Employees (“AFGE”) Local Union 331, which represents approximately 760 employees of the Department of Veterans Affairs (VA) Medical Center in Perry Point, Maryland.
As detailed in her plea agreement, Jones executed two fraud schemes through which she embezzled at least $82,180.73 from the Union. First, from July 2012 through July 2015, Jones stole at least $80,944.80 in Union funds by forging her colleagues’ signatures on 335 Union checks that she wrote to herself and then cashed or deposited those checks at multiple financial institutions. Second, from January 2014 through July 2015, Jones used a Union-issued credit card to pay for $1,235.93 in personal expenses using Union funds on 20 separate occasions.
Jones admitted that she took steps to conceal the scheme from the Union. For example, not only did Jones have exclusive control of the Union’s checkbook, but she also maintained sole custody of a laptop computer that she was issued by the Union to manage its financial records on Union-purchased accounting software. In that software, Jones frequently recorded false information regarding the business purpose of the fraudulent Union checks she forged and negotiated, or recorded no information at all about the business purpose of such checks. Jones also provided false information about the Union’s finances to the Executive Board and the Union membership, caused reports to be submitted to the federal government that falsely certified the amount of money she received from the Union, and lied to the Union’s independent auditor.
Jones’ fraud was discovered in July 2015, when the Union’s Vice President overheard a phone call in which Jones attempted to purchase a smartphone for a family member using the credit card she had been issued to pay for Union expenses only. The Vice President then reported the conversation to the Union’s President. The President later conducted a search of Jones’s office and found two uncashed Union checks made payable to Jones on which it appeared that the President’s signature had been forged. The Union President then met with the manager of the bank where the Union’s account was held, and reviewed each of the checks to Jones that had been drawn on the Union’s account during the preceding three months. The Union President’s signature had been forged on all of them. When the manager provided the President with copies of the Union’s monthly credit-card account statements, the President also discovered that Jones had made a number of personal charges on her Union-issued card.
Jones was immediately removed from her position as Union Treasurer and resigned from the VA soon thereafter. Although Jones had agreed to return her Union-issued laptop at the time she was removed as Treasurer, Jones admitted that she never returned it.
As part of her plea agreement, Jones will be required to pay restitution in the full amount of the loss, which the parties agree is $82,180.73.
Jones and the government have agreed that, if the Court accepts the plea agreement, Jones will be sentenced to two years in federal prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for September 10, 2019 at 1:00 p.m.
United States Attorney Robert K. Hur commended the DOL and VA-OIG for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Matthew J. Maddox, who are prosecuting the case.
Former Jefferson Parish Councilman Charged in 29-Count Indictment with Tax Evasion and Wire FraudRead the Press Release
NEW ORLEANS – The United States Attorney’s Office, Eastern District of Louisiana announced that CHRISTOPHER LORELL ROBERTS, JR., age 41, a resident of Gretna, Louisiana, was charged today in a 29-count Indictment with wire fraud, in violation of Title 18, United States Code, Section 1343, and tax evasion, in violation of Title 26, United States Code, Section 7201.
According to the Indictment, ROBERTS served as a member of the Jefferson Parish Council beginning in January 2004, first as a representative of District 1 and then as a Councilman-at-Large. In addition to receiving a salary of up to $112,000 as a councilman, ROBERTS earned income from a variety of other sources, including his part or full ownership of several business ventures, including CDS Enterprises, L.L.C. (“CDS Enterprises”), Mardi Market, The West Bank Beacon, LLC (the “West Bank Beacon”), fireworks stands, Baskin Robbins ice cream franchises, sno-ball stands, a photography business, and a consulting business. CDS Enterprises was the entity through which ROBERTS, among other things, owned and operated Baskin Robbins ice cream franchise locations. Mardi Market was a wholesaler of Mardi Gras-related merchandise, including throws (i.e., beads, doubloons, cups, etc.), apparel, and supplies, located in Gretna, Louisiana. The West Bank Beacon was a local monthly publication distributed throughout portions of the metropolitan New Orleans area. ROBERTS held an approximately twenty-five (25) percent ownership stake in the West Bank Beacon and was responsible for its business operations. ROBERTS also earned income in the form of gambling winnings.
In about October 2013, after the death of its owner, ROBERTS was hired to serve as the General Manager of Company A, a full-service landscaping and landscape management company headquartered in Terrytown, Louisiana, within the Eastern District of Louisiana, that specialized in providing various residential and commercial services, including deck and fence design, creation, and installation, as well as lawn mowing, tree trimming, and weeding. Company A’s new owner, the wife of its original owner, had no prior experience or involvement operating Company A or familiarity with running a business. ROBERTS was responsible for, among other things, the daily oversight, control, and operation of Company A and had signatory authority for and access to Company A’s bank accounts. Beginning not later than May 2014, ROBERTS began defrauding Company A in a number of ways, including by writing checks made payable to himself or entities whose bank accounts were under his control, including the West Bank Beacon and CDS Enterprises, and using Company A’s debit card, which drew on Company A’s bank accounts, to pay for goods and services that benefitted him personally.
ROBERTS engaged in a series of deceptive acts to disguise his behavior and to make the fraudulent transactions appear legitimate by various means. For example, ROBERTS wrote and issued checks drawn on Company A’s bank accounts that contained false descriptions in the checks’ memo lines. He also wrote and issued checks drawn on Company A’s bank accounts made payable to entities owned or controlled by ROBERTS, including CDS Enterprises and the West Bank Beacon, that purported to be related to legitimate expenditures or bill payments for Company A. Furthermore, ROBERTS sent text messages containing false information about the reason for payments to Company A’s owner. He also claimed that unauthorized payments were reimbursements for loans ROBERTS personally made to Company A and bills for Company A that ROBERTS had paid personally. Among the items ROBERTS purchased, in whole or in part, with money he obtained without authorization from Company A and unrelated to his employment with Company A, were a customized shipping container to use as a retail location for the operation of his fireworks business, three (3) remote-controlled drones, and a 2.01 carat diamond ring with a split shank and 84 additional diamonds surrounding the primary diamond that cost approximately $16,000, which ROBERTS used as an engagement ring.
Additionally, each year between Tax Year 2010 and Tax Year 2016, ROBERTS failed to report a substantial amount of the income he earned from multiple sources, including CDS Enterprises, the West Bank Beacon, Company A, and gambling winnings at casinos on his United States Individual Income Tax Return, Form 1040 (“Form 1040”). With the help of a certified public accountant, ROBERTS filed initial returns for Tax Years 2010, 2011, 2012, and 2013, in September 2015, during a contested re-election campaign. These returns underreported substantial income sources. Despite failing to declare many of these sources of income on his federal income tax returns, ROBERTS disclosed most of them on the personal financial disclosure statements he completed and filed annually with the Louisiana Board of Ethics.
In mid-2017, after ROBERTS learned of a federal criminal investigation into his federal income tax returns, he retained a different certified public accountant to prepare amended returns for Tax Years 2010, 2011, 2012, and 2013, as well as original federal income tax returns for Tax Years 2014, 2015, and 2016. While his amended returns reported significantly more income that the initial income tax return, ROBERTS withheld substantial income sources from his these returns, as well. For example, on September 14, 2015, ROBERTS filed his Tax Year 2013 federal income tax return in which he reported joint total income of $188,759. On January 11, 2018, after learning of the federal investigation, ROBERTS filed an amended return that reported his joint total income was $568,957.
If convicted, ROBERTS faces a maximum term of 475 years in prison, a fine of up to $6,200,000, up to three (3) years of supervised release after imprisonment, and a mandatory $100 special assessment per count.
The United States Attorney’s Office reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The United States Attorney’s Office praised the work of the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation in investigating this matter, with the assistance of the Metropolitan Crime Commission. Assistant United States Attorney Jordan Ginsberg, supervisor of the Public Corruption Unit, and Assistant United States Attorney Myles Ranier are in charge of the prosecution.
Former Intelligence Analyst Charged with Disclosing Classified InformationRead the Press Release
An indictment was unsealed today charging a former intelligence analyst with illegally obtaining classified national defense information and disclosing it to a reporter. Daniel Everette Hale, 31, of Nashville, Tennessee, was arrested this morning and will make his initial appearance today at the federal courthouse in Nashville. Assistant Attorney General for National Security John C. Demers, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia and Acting Special Agent in Charge Jennifer L. Moore of the FBI’s Baltimore Field Office made the announcement after the charges were unsealed.
According to the indictment, Hale was enlisted in the U.S. Air Force from July 2009 to July 2013, during which time he received language and intelligence training. While serving on active duty, Hale was assigned to work at the National Security Agency (NSA) and deployed to Afghanistan as an intelligence analyst. After leaving the U.S. Air Force, Hale was employed by a defense contractor and assigned to the National Geospatial-Intelligence Agency (NGA), where he worked as a political geography analyst between December 2013 and August 2014. In connection with his active duty service and work for the NSA, and during his time at NGA, Hale held a Top Secret//Sensitive Compartmented Information (TS//SCI) security clearance and was entrusted with access to classified national defense information.
According to allegations in the indictment, beginning in April 2013, while enlisted in the U.S. Air Force and assigned to the NSA, Hale began communicating with a reporter. Hale met with the reporter in person on multiple occasions, and, at times, communicated with the reporter via an encrypted messaging platform. Then, in February 2014, while working as a cleared defense contractor at NGA, Hale printed six classified documents unrelated to his work at NGA and soon after exchanged a series of messages with the reporter. Each of the six documents printed were later published by the reporter’s news outlet.
According to allegations in the indictment, while employed as a cleared defense contractor for NGA, Hale printed from his Top Secret computer 36 documents, including 23 documents unrelated to his work at NGA. Of the 23 documents unrelated to his work at NGA, Hale provided at least 17 to the reporter and/or the reporter’s online news outlet, which published the documents in whole or in part. Eleven of the published documents were classified as Top Secret or Secret and marked as such.
According to allegations in the indictment, in August 2014, Hale’s cell phone contact list included contact information for the reporter, and he possessed two thumb drives. One thumb drive contained a page marked “SECRET” from a classified document that Hale had printed in February 2014 and had attempted to delete from the thumb drive. The other thumb drive contained Tor software and the Tails operating system, which were recommended by the reporter’s online news outlet in an article published on its website regarding how to anonymously “leak” documents.
Hale is charged with obtaining national defense information, retention and transmission of national defense information, causing the communication of national defense information, disclosure of classified communications intelligence information, and theft of government property. Each charge carries a maximum penalty of 10 years in prison. 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.
Assistant U.S. Attorneys Gordon D. Kromberg and Alexander P. Berrang and Senior Trial Attorney Heather M. Schmidt of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Former Intelligence Analyst Charged with Disclosing Classified InformationRead the Press Release
ALEXANDRIA, Va. – An indictment was unsealed today charging a former intelligence analyst with illegally obtaining classified national defense information and disclosing it to a reporter.
Daniel Everette Hale, 31, of Nashville, Tennessee, was arrested this morning and will make his initial appearance today at the federal courthouse in Nashville.
According to the indictment, Hale served as an enlisted airman in the U.S. Air Force from July 2009 to July 2013. After receiving language and intelligence training, Hale was assigned to work at the National Security Agency (NSA) and deployed to Afghanistan as an intelligence analyst. After leaving the U.S. Air Force in July 2013, Hale was employed by a defense contractor and assigned to the National Geospatial-Intelligence Agency (NGA), where he worked as a political geography analyst between December 2013 and August 2014. In connection with his active duty service and work for the NSA, and during his time at NGA, Hale held a Top Secret // Sensitive Compartmented Information (TS//SCI) security clearance and was entrusted with access to classified national defense information.
According to allegations in the indictment, beginning in April 2013, while enlisted in the U.S. Air Force and assigned to the NSA, Hale began communicating with a reporter. Hale met with the reporter in person on multiple occasions, and, at times, communicated with the reporter via an encrypted messaging platform. Then, in February 2014, while working as a cleared defense contractor at NGA, Hale printed six classified documents unrelated to his work at NGA and soon after exchanged a series of messages with the reporter. Each of the six documents printed were later published by the reporter’s news outlet.
According to allegations in the indictment, while employed as a cleared defense contractor for NGA, Hale printed from his Top Secret computer 36 documents, including 23 documents unrelated to his work at NGA. Of the 23 documents unrelated to his work at NGA, Hale provided at least 17 to the reporter and/or the reporter’s online news outlet, which published the documents in whole or in part. Eleven of the published documents were marked as Top Secret or Secret.
According to allegations in the indictment, in August 2014, Hale’s cell phone contact list included contact information for the reporter, and he possessed two thumb drives. One thumb drive contained a page marked “SECRET” from a classified document that Hale had printed in February 2014 and had attempted to delete from the thumb drive. The other thumb drive contained Tor software and the Tails operating system, which were recommended by the reporter’s online news outlet in an article published on its website regarding how to anonymously “leak” documents.
Hale is charged with obtaining national defense information, retention and transmission of national defense information, causing the communication of national defense information, disclosure of classified communications intelligence information, and theft of government property. Each charge carries a maximum penalty of 10 years in prison. 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, John C. Demers, Assistant Attorney General for National Security, and Jennifer L. Moore, Acting Special Agent in Charge of the FBI’s Baltimore Field Office, made the announcement after the charges were unsealed. Assistant U.S. Attorneys Gordon D. Kromberg and Alexander P. Berrang and Senior Trial Attorney Heather M. Schmidt of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
The FBI’s Memphis Division – Nashville Resident Agency provided significant assistance with the arrest operation.
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-59.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Former Fenton housing authority director sentenced for embezzling more than $33,000Read the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced today that the former executive director of the Fenton housing authority, Gwen Jackson, 35, of Fenton, Louisiana, was sentenced to six months in prison by U.S. District Judge Donald E. Walter for embezzling more than $33,000 from the housing authority. She was also sentenced to three years of supervised release and must pay $33,000 in criminal restitution.
Jackson embezzled $33,194.76 from March 31, 2017 to September 20, 2017 while she was executive director of the Fenton Housing Authority. Jackson was hired as executive director in February of 2017 and was responsible for the day-to-day operations of the housing authority complex, which included access to business checks and the accounting ledger. After receiving complaints about the possible theft of funds, law enforcement agents interviewed Jackson and she confessed to fraudulently cashing numerous FHA checks for her personal benefit. She pleaded guilty to federal charges on January 9, 2019.
The U.S. Department of Housing and Urban Development, Office of Inspector General, and the Louisiana Legislative Auditor’s Office conducted the investigation. Assistant U.S. Attorney Jamilla A. Bynog prosecuted the case.
Former Doctor Sentenced to Prison for Unlawfully Dispensing Vicodin and Defrauding the University of Pittsburgh Medical Center Health PlanRead the Press Release
PITTSBURGH, Pa. - A former Pittsburgh radiologist has been sentenced in federal court to two years (24 months) in prison, three years’ supervised release, and order to pay a fine of $15,000 and restitution in the amount of $728 on his conviction of unlawfully distributing controlled substances and health care fraud, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Omar A. Almusa, 46, of Pittsburgh, PA.
According to information presented to the court, Almusa, while he was employed as a radiologist at the University of Pittsburgh Medical Center, conspired to create and submit unlawful prescriptions for Vicodin, and then unlawfully dispensed those controlled substances to other persons without a legitimate medical purpose. Almusa also committed health care fraud by submitting fraudulent claims to UPMC Health Plan for payments to cover the costs of the unlawfully prescribed Vicodin.
Prosecuting medical professionals who illegally prescribe powerful painkillers without a legitimate medical purpose is another front in our fight against the opioid epidemic," U.S. Attorney Brady said. "We will continue to investigate and prosecute these corrupt doctors."
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
The investigation leading to the filing of charges in these cases was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic. This unit has investigated and prosecuted more corrupt health care professionals than any other U.S. Attorney’s Office in the country.
The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.
Former Bank Officer Sentenced for Bank Fraud SchemeRead the Press Release
A Tulsa man was sentenced to federal prison Thursday as the result of a bank fraud scheme that cost his former employer, Firstar Bank of Tulsa, nearly $700,000.
Chief United States District Judge John E. Dowdell sentenced Blake Brian Ferguson, 37, of Broken Arrow, to 31 months in prison on three counts of bank fraud and one count of engaging in an unlawful monetary transaction to be followed by five years of supervised release on the bank fraud charges and three years of supervised release on the monetary transaction charge. All sentences run concurrently. The court further ordered Ferguson to pay $144,160 in restitution to the bank and individual victims affected by the fraudulent scheme.
“The integrity of the banking system is essential to the economic well-being of our community,” said U.S. Attorney Shores. “In this instance, a senior bank officer betrayed the trust and confidence placed in him by the bank, his staff, and customers. Mr. Ferguson’s sentence sends a signal to the marketplace that fraud will not be tolerated inside our financial institutions.”
In imposing sentence, the Court noted that Ferguson had manipulated customer lines of credit in order to obtain funds in the amount of $697,060 to support his gambling habit. At his plea hearing in 2017, Ferguson had admitted that, as an officer at the bank, he increased customer lines of credit to take funds from the loans for his own benefit, mostly to pay gambling debts. The bank was unaware of the fraudulent purpose underlying the loan transactions. Ferguson’s scheme lasted from January 2013 to September 2015.
Ferguson was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prison facility in June 2019.
The FBI, Internal Revenue Service-Criminal Investigation, and the Federal Deposit Insurance Corporation /Office of Inspector General, investigated the case. Assistant U.S. Attorney Kevin C. Leitch prosecuted the case.
Florida Man Sentenced to Prison for Role in Scheme to Fraudulently Process Credit Card PaymentsRead the Press Release
PITTSBURGH - A Florida resident has been sentenced in federal court to two years and 10 months in prison and three years of supervised release on his conviction of conspiracy to commit mail fraud, wire fraud and bank fraud, United States Attorney Scott W. Brady announced today.
United States District Judge David Stewart Cercone imposed the sentence yesterday on Gennady Nudelman, 43, of Delray Beach, Florida.
According to information presented to the court, Nudelman participated in a sophisticated fraud scheme related to the fraudulent processing of credit card payments. The credit card companies will not allow their products and services to be used to pay for certain precluded activities, including the on-line sales of pharmaceutical drugs, including drugs that require prescriptions. The defendant participated in the conspiracy designed to conceal from the credit card companies the fact they used their products and services to pay for precluded activities and to subvert the internal controls the credit card companies had in place to detect and prevent this type of activity.
The fraud involved establishing shell corporations and web sites associated with the shell companies that falsely claimed that they sold products other than pharmaceutical drugs or products that violated trademark infringement laws. The conspirators then applied for merchant accounts from the credit card companies in the names of the shell corporations and the fake web sites. Once the merchant accounts were established, they were used to process payments for pharmaceutical drugs or products that violated trademark infringement laws. Additionally, the conspirators arranged for the credit card statements sent to the consumers to have the names of the shell corporations and telephone numbers. The conspirators set up a telephone bank to receive calls from customers questioning billings on their credit card statements, and the conspirators explained to the customers the true nature of the transactions in hopes of avoiding charge-backs that could cause the credit card companies to question the legitimacy of the transactions. Nudelman operated a business in Florida that specialized in using this complex fraud scheme to process payments primarily for pharmaceutical drugs that required prescriptions, but were sold to consumers in the United States through overseas websites without a prescription.
Assistant U.S. Attorney Brendan T. Conway prosecuted this case on behalf of the government.
U.S. Attorney Brady commended the Food and Drug Administration – Office of Criminal Investigations, Homeland Security Investigations, Pennsylvania State Police and United States Postal Inspection Service for the investigation leading to the successful prosecution of Nudelman.
Five Canton men indicted for stealing 22 firearms from Canton gun storeRead the Press Release
Five Canton men were indicted in federal court for allegedly stealing dozens of guns from a firearms store in Canton in February.
Four of the defendants were also indicted on charges of conspiring to steal firearms from another Canton firearms store.
Robert Clark, Jr., 18, Marquelis Thomas, 21, Shymeik Barkley, 18, God Gibson, 18, and Jamaryon Frazier, 18, were each indicted on one count of theft of firearms from a licensed firearms dealer.
Clark, Thomas, Gibson and Frazier are also indicted on one count of conspiracy to commit theft of firearms from a licensed firearms dealer.
The five men are accused of stealing 22 firearms from Elite Security Consultants LLC on February 2, 2019.
Clark, Thomas, Gibson and Frazier are also accused of conspiring to steal firearms from Stark Arms on February 2, 2019. The men parked at Stark Arms, on Cleveland Avenue S.W., wearing gloves and covering their faces and attempted to gain entry by throwing a heavy metal object at the business’s window, according to the indictment.
If convicted, the defendants’ sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is part of Project Safe Neighborhoods, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, Canton Police Department and Stark County Sheriff’s Office. It is being prosecuted by Assistant U.S. Attorney Aaron P. Howell.
An indictment is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla. – United States Attorney Trent Shores announced today the results of the May 2019 Federal Grand Jury.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Brandon Michael Browning. Felon in Possession of a Firearm and Ammunition; Possession of Methamphetamine With Intent to Distribute; Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Browning, 35, of Claremore, is charged with being a felon in possession of a Rohm .22 caliber revolver and associated ammunition. He is further charged with possessing methamphetamine with intent to distribute and with possessing a firearm in furtherance of a drug trafficking crime. The Claremore Police Department, Rogers County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration are the investigative agencies.
Isidro Campos, Jose Antonio Ramirez-Lopez, Emilio Torres. Drug Conspiracy; Interstate Travel in Aid of Racketeering. Campos, 26, of Bell Gardens, California; Ramirez-Lopez, 22, of Phoenix, Arizona; and Torres, 30, of Huntington Park, California are charged with conspiring to distribute 500 grams of methamphetamine. Campos and Torres are further charged with traveling across state lines, from California to Oklahoma, to promote, manage, establish and carry on their alleged methamphetamine conspiracy. The Oklahoma Highway Patrol and Drug Enforcement Administration are the investigative agencies.
Sebastian Cobelo. Possession of Methamphetamine With Intent to Distribute (2 Counts); Possession of a Firearm in Furtherance of a Drug Trafficking Crime (2 Counts). Cobelo, 43, of Broken Arrow, is charged with possessing with intent to distribute 500 grams or more of methamphetamine and possession with intent to distribute 50 grams or more of methamphetamine. He is further charged with possessing a firearm in furtherance of a drug trafficking crime. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Robert Sean Thomas Davis. Attempted Coercion and Enticement of a Minor. Thomas, 26, of Owasso, is charged with using a cell phone and social media apps to knowingly attempt to entice a minor to meet and engage in sexual activity. The FBI and Tulsa Police Department are the investigative agencies.
Harold Dewey Delonia, III, Whitney Nichole Parker. Felon in Possession of Firearm; Felon in Possession of Firearm and Ammunition (2 Counts); Transfer of Firearm to Prohibited Person. Delonia, 24, of Okmulgee, is charged with being a felon in possession of a Taurus 9 mm Luger pistol, a Glock .40 S&W caliber pistol, a Ruger 9mm Luger pistol and associated ammunition. Parker, 28, of Tulsa, is charged with transfer of a firearm to a prohibited person. On Nov. 10, 2018, Parker allegedly transferred the Taurus 9 mm Luger pistol to Delonia knowing he was a felon. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigative agency.
Raytjuan Laquai Edwards. Felon in Possession of Firearm and Ammunition; Possession of a Firearm and Ammunition While Subject to a Domestic Violence Protective Order; Obstruction of Justice by Tampering with A Witness. Edwards, 39, of Tulsa, is charged with being a felon in possession of a Forjas Taurus .357 Magnum and various ammunition. Edwards was previously convicted five times on gun and drug distribution charges. Edwards is further charged with possessing a firearm while subject to a domestic violence protective order. A protective order was issued on Nov. 5, 2018, restraining Edwards from harassing, stalking and threatening an intimate partner and the partner’s child or from engaging in any conduct that would place the two in reasonable fear of bodily injury. Finally, Edwards is charged with obstructing justice by tampering with a witness. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Kevin Ryan Evraets. Sale of a Firearm to a Prohibited Person; Dealing Firearms Without a License. Evraets, 33, of Broken Arrow, is charged with knowingly selling a Ruger .40 caliber pistol to an individual who was a convicted felon. He is further charged with dealing firearms without a license from July to December 2018 in the Northern District of Oklahoma. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Raymond Mark Hamilton. Felon in Possession of a Firearm. Hamilton, 62, of Tulsa, is charged with being a felon in possessing a Smith and Wesson semi-automatic pistol and associated ammunition. Hamilton has 10 previous felony convictions. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Braden Kial Johnson. Bank Fraud. Johnson, 23, of Bixby, is charged with executing a scheme to fraudulently obtain money from RCB Bank from Dec. 7, 2018 to Feb. 9, 2019. Johnson was a treasurer for a Claremore youth sports association where he allegedly drafted unauthorized checks from the association’s bank account, making the checks payable to himself then forging the signature of the former treasurer. He would then cash the checks. As part of the scheme, Johnson allegedly forged approximately 18 checks and fraudulently obtained at least $22,368.50. The Claremore Police Department and FBI are the investigative agencies.
Nabrai Lyntrel Lyons. Drug Conspiracy; Attempted Possession of Fentanyl with Intent to Distribute; Possession of Fentanyl with Intent to Distribute; Importation of a Controlled Substance - Fentanyl; Possession of Firearm in Furtherance of Drug Trafficking Crimes; Smuggling Goods into the United States. Lyons, 24, of Tulsa, is charged with conspiring with others to distribute and to possess with intent to distribute fentanyl; knowingly attempting to possess with intent to distribute fentanyl; knowingly possessing with intent to distribute fentanyl; importing a controlled substance into the United States not pursuant to Attorney General regulations; and receiving merchandise she knew to have been smuggled into the United States. Finally, Lyons is charged with possessing a Taurus 9 mm caliber pistol in furtherance of drug trafficking crimes. The Oklahoma Bureau of Narcotics, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and Tulsa County Sheriff’s Office are the investigative agencies.
Timothy Dwayne Parker. Attempted Coercion and Enticement of a Minor. Parker, 53, of Sapulpa, is charged with using his cell phone to knowingly attempt to entice a minor to engage in sexual activity. The Sapulpa and Bristow Police Departments are the investigative agencies.
Kevin Glenn Petty. Theft of Government Property; Aggravated identity Theft. Petty, 54, of Sand Springs was charged with theft of government property and fraudulently using another individual’s identity in pursuit of his crime. Petty allegedly filed fraudulent 2016 income tax returns under the name of taxpayer Woodson J. Nightwalker. The $3,800 tax refund amount was deposited into a Green Dot card account, which funded a Green Dot pre-paid debit account. Petty allegedly filed five additional fraudulent returns, which were intercepted by the IRS. The six false returns filed by Petty sought a total of $12, 303 in fraudulent refunds. The case was investigated by special agents of IRS-Criminal Investigation and the U.S. Postal Inspector.
James Thomas Saunders, Jr. Possession of Methamphetamine with Intent to Distribute; Possession of Firearms in Furtherance of a Drug Traffkicking Crime; Felon in Possession of Firearms and Ammunition. Saunders, 29, of Tulsa, is charged with possessing with intent to distribute methamphetamine, with possessing firearms to further his methamphetamine distribution, and being a felon in possession of a Lorcin 9 mm, 9x19mm caliber semi-automatic pistol, a Mossberg 12 gauge shotgun and various ammunition. Saunders had eight previous felony convictions. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Canado Lopez Smith. Felon in Possession of Firearm and Ammunition, Possession of Marijuana with Intent to Distribute, Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Smith, 46, of Tulsa, is charged with being a felon in possession of a Phoenix Arms .22 long rifle caliber semi-automatic pistol and associated ammunition. He is further charged with possession with intent to distribute marijuana and possession of a firearm to further his drug trafficking crime. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Lance Thomas Weaver. Possession of Methamphetamine with Intent to Distribute. Weaver, 46, of Pryor, is charged with possessing with intent to distribute 50 grams or more of methamphetamine. The Delaware County Sheriff’s Office is the investigative agency.
Fayetteville Man Convicted of Firearm ChargesRead the Press Release
NEW BERN - United States Attorney Robert J. Higdon, Jr. announced that, DELTON WARREN, 55, of Fayetteville was convicted in federal court following a 2-day trial before United States District Judge Louise W. Flanagan. The jury found WARREN guilty of felon in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime.
The jury heard evidence that WARREN distributed cocaine and crack cocaine from February 2017 to April 2017 and, during that time period, the Fayetteville Police Department utilized a confidential informant to make four undercover purchases of crack cocaine from WARREN. As the investigation continued, Officers obtained a search warrant for WARREN’s residence. WARREN was arrested and was found to be in possession of crack cocaine. Inside the residence, Officers found a large quantity of crack cocaine, powder cocaine and a large amount of currency. In close proximity to the drugs and money, Officers found a loaded handgun ready to be fired.
WARREN faces a maximum sentence of life imprisonment followed by 5 years of supervised release at his sentencing hearing at a later date.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by the Fayettteville Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorneys Jane Jackson and Chad Rhoades handled the prosecution of this case for the government.
Former Dona Ana County Doctor Sentenced to 108 Months for Conviction on Unlawful Distribution of Prescription Painkillers and Health Care Fraud ChargesRead the Press Release
Physician’s Medical License Revoked in 2012
ALBUQUERQUE – Pawankumar Jain, 66, a former physician, was sentenced today in federal court in Las Cruces, N.M., to 108 months in prison and three years of supervised release for unlawfully dispensing controlled substances and health care fraud. The sentence was announced by U.S. Attorney John C. Anderson, Special Agent in Charge Kyle W. Williamson of the DEA’s El Paso Division, and Special Agent in Charge James C. Langenberg of the FBI’s Albuquerque Division.
Jain previously entered guilty pleas on Feb. 11, 2016, to one count of unlawfully dispensing a controlled substance and one count of health care fraud. In his plea agreement, Jain admitted that he previously was licensed to practice medicine in the State of New Mexico and was registered with the DEA to prescribe controlled substances, including pain medication. Jain admitted that for several years he operated a high-volume “pain management” practice in Las Cruces, and frequently performed only “cursory” examinations of his patients before prescribing narcotics to them without documenting any therapeutic benefit for those drugs in his records.
Jain specifically admitted examining one patient on Nov. 25, 2009, who is identified in the indictment as “M.E.B.” Jain admitted that he conducted only a superficial examination of M.E.B. before writing M.E.B. two prescriptions for methadone that were outside the usual course of medical practice and not for any legitimate medical purpose. Each prescription was for 270 tablets of 10 mg methadone. Jain further admitted that he committed health care fraud because he knew these unlawful prescriptions would be submitted to Medicare for payment and that he intended for Medicare to pay for the prescriptions.
Jain also acknowledged that M.E.B. died two days after filling the second methadone prescription. According to evidence at the sentencing hearing, M.E.B. died of respiratory depression due to the methadone Jain prescribed. The New Mexico Medical Board suspended Jain’s license in June 2012, and revoked his license in Dec. 2012.
“The U.S. Attorney’s Office and our law enforcement partners are committed to working together to aggressively target and hold drug traffickers accountable – both those who distribute on the street, and those who traffic as physicians writing prescriptions for no legitimate medical purpose,” said U.S. Attorney John C. Anderson. “Doctors who betray our trust and put their own financial gain ahead of the well-being of their patients by prescribing narcotics without medical justification are directly fueling our nation’s opioid crisis.”
“Doctors take an oath to treat and care for patients who come to them for help,” stated Special Agent in Charge Kyle W. Williamson of the DEA’s El Paso Division. “Dr. Jain ignored this oath and continued to overprescribe, which eventually resulted in the deaths of four patients. His sentencing today will send a message to other doctors that they are not above the law and DEA will continue to forcefully pursue and hold them accountable.”
“Patients must be able to trust their physician,” said Special Agent in Charge James C. Langenberg of the FBI’s Albuquerque Division. “This doctor not only violated that trust but defrauded federal health care programs that many consumers depend on. The FBI hopes this case sends a message that this kind of criminal behavior by someone who should have put his patients’ well-being first will not be tolerated. We congratulate the DEA, U.S. Attorney's Office, the New Mexico Medical Board, and the New Mexico Board of Pharmacy on a successful prosecution.”
This case was investigated by the DEA’s Tactical Diversion Team in El Paso, Texas and the FBI’s Healthcare Fraud Unit with assistance from the New Mexico Medical Board and the New Mexico Board of Pharmacy. The case was prosecuted by Assistant U.S. Attorneys Sarah M. Davenport and Richard C. Williams of the U.S. Attorney’s Las Cruces Branch Office.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
The U.S. Attorney’s Office prosecuted this case as part of the Department of Justice’s commitment in partnership with other law enforcement to combat the illegal manufacturing and distribution of methamphetamine, heroin and prescription opioids and to establish new programs to provide services to victims of the opioid crisis.
El Paso Man Sentenced to 20 Years in Federal Prison for Receipt and Distribution of Child PornographyRead the Press Release
In El Paso this morning, 30-year-old Irving Marquez was sentenced to the statutory maximum 20 years in federal prison for receiving and distributing child pornography, announced U.S. Attorney John F. Bash and Homeland Security Investigations (HSI) Special Agent in Charge Jack P. Staton, El Paso.
In addition to the prison term, U.S. District Judge David C. Guaderrama ordered that Marquez pay $3,200 restitution to four victims and be placed under supervised release for life after completing his prison term.
In March 2017, the National Center for Missing and Exploited Children (NCMEC) notified HSI agents that potential child pornography was located on a Flickr account operated by the defendant. Federal authorities subsequently located images and videos of child pornography on the account and on numerous devices belonging to the defendant, including his personal computer and multiple cell phones. A forensics examination of the seized materials revealed the presence of hundreds of videos and images depicting minors engaged in sexually explicit activity. On August 22, 2018, Marquez pleaded guilty to the charge of receiving and distributing child pornography.
“This sentence is fitting of the crime, and we owe it to the youngest victims of these heinous acts to ensure that the perpetrators pay a high price for their offenses,” said Jack P. Staton, special agent in charge of HSI El Paso. “HSI special agents remain committed to identifying and arresting child predators.”
HSI agents in El Paso conducted this investigation. Assistant U.S. Attorney Mallory Rasmussen prosecuted this case on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
East Brookfield Man Charged with illegally Operating a Helicopter from BackyardRead the Press Release
BOSTON – An East Brookfield man was arrested today and charged in federal court in Worcester in connection with unlawfully operating an aircraft and making false statements to federal investigators.
Antonio Santonastaso, 59, was charged by criminal complaint with one count of serving as an airman without an airman certificate and one count of making false statements to federal agents. Santonastaso will appear in federal court in Worcester this afternoon.
According to the charging document, the Federal Aviation Administration (FAA) revoked Santonastaso’s license to pilot an aircraft in 2000, after he participated in the theft of a helicopter from Norwood Memorial Airport. Despite being aware of that revocation, Santonastaso operated a Robinson R-22 helicopter – taking off and landing from his backyard – more than 50 times between April 28, 2018 and Nov. 11, 2018. FAA inspectors reviewed the path Santonastaso used when taking off and landing from his backyard, and concluded that it was extremely hazardous.
When questioned by the FAA and federal agents, Santonastaso repeatedly made false statements regarding his eligibility to pilot the helicopter. Among other things, Santonastaso falsely claimed to have not learned that the FAA had revoked his license, and made false statements regarding his applications for a medical certificate, which is required in order to operate an aircraft.
The charging statutes provide for a sentence of no greater than five years in prison, up to three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation, Office of the Inspector General, made the announcement. Assistant U.S. Attorney Evan Panich of Lelling’s Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Drug Traffickers Sentenced to 20 Years Combined in Federal Prison for Possession with Intent to Distribute Methamphetamine and Firearms PossessionRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Dustin Slack, age 33, of Bentonville, Arkansas, was sentenced yesterday to 130 months in federal prison followed by three years of supervised release, on one count of Possession with Intent to Distribute Methamphetamine and Douglas Prince, age 50, of Centerton, Arkansas, was sentenced today to 120 months in federal prison followed by four years of supervised release, on one count of Possession with Intent to Distribute Methamphetamine and Felon in Possession of a Firearm. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, on July 17, 2018, officers with the Benton County Sheriff's Office attempted to serve an arrest warrant on Slack and another individual. Upon arrival at the residence where Slack was residing, which was located within the Western District of Arkansas, Fayetteville Division, officers made contact with Slack and placed him under arrest. During the arrest officers located methamphetamine on Slack’s person. A search of the residence resulted in officers locating an additional 162.4 grams of methamphetamine. Shortly thereafter, a white Jaguar, driven by Prince and occupied by another individual, pulled up to the residence, at which point they were removed from the vehicle and detained. A canine positively alerted to the vehicle for the presence of narcotics. A subsequent search of the vehicle revealed 234 grams of methamphetamine and a loaded .45 caliber pistol.
Slack and Prince were indicted by a federal grand jury in September 2018 and entered guilty plea’s in January 2019.
This case was investigated by the Benton County Sheriff’s Office and the Drug Enforcement Administration. Assistant United States Attorney’s David Harris and Dustin Roberts prosecuted the case for the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
Drug Trafficker Sentenced to 60 Months in Prison for Conspiring to Distribute Heroin, Cocaine and Marijuana Across New York CityRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Robert Santos, a member of a Bronx-based drug trafficking ring, was sentenced by United States District Judge Frederic Block to 60 months’ imprisonment, to be followed by four years’ supervised release, based on his February 2018 guilty plea to participating in a conspiracy to distribute 100 grams or more of heroin, 500 grams or more of cocaine, and marijuana.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, Angel M. Melendez, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), Keith M. Corlett, Acting Superintendent, New York State Police (NYSP), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Robert Santos has been deservedly punished with prison time for playing a critical role in a drug trafficking operation, delivering dangerous drugs on our streets and lining his pockets with the illicit proceeds,” stated United States Attorney Donoghue. “This Office and our law enforcement partners will continue to work vigorously to stop the flow of illegal and dangerous drugs onto our streets.”
Between July 2016 and March 2017, Santos and other members of the drug ring distributed large amounts of heroin, cocaine and marijuana throughout New York City, including to out-of-state customers. At the time of Santos’s arrest, DEA special agents seized quantities of those controlled substances, a kilogram press and other drug paraphernalia in his Bronx apartment.
Two co-defendants, John Santos and Kevin Brito, previously pleaded guilty. John Santos was sentenced to 121 months’ imprisonment on January 18, 2019. Kevin Brito is awaiting sentencing.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorney Ryan C. Harris is in charge of the prosecution.
The Defendant:
ROBERT SANTOS
Age: 40
Bronx, New YorkE.D.N.Y. Docket No. 17-CR-147
Dominican National Pleads Guilty to Social Security Fraud and Identity TheftRead the Press Release
BOSTON – A Dominican national residing in Lynn pleaded guilty yesterday in federal court in Boston to Social Security fraud and aggravated identity theft.
Nelson Bolivar, 54, pleaded guilty to one count of false representation of a Social Security number and one count of aggravated identity theft. U.S. District Court Judge Denise J. Casper scheduled sentencing for June 20, 2019. Bolivar was arrested and charged in a July 2018 federal law enforcement sweep of 25 individuals accused of document and benefit fraud.
Dubbed “Double Trouble,” the July 2018 investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), comprised of local, state and federal agencies with expertise in detecting, deterring and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
On July 13, 2015, Bolivar, a citizen of the Dominican Republic, applied for a Massachusetts Identification Card using the name and Social Security number of a Puerto Rican citizen. He presented a Puerto Rican birth certificate and a Social Security card in the other person’s name to the Massachusetts Registry of Motor Vehicles as proof of his identity. Based on the application and supporting identity documents, Bolivar was issued an identification card in the name of the Puerto Rican citizen. Bolivar also used the name and Social Security number of a Puerto Rican citizen to receive MassHealth benefits.
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, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Massachusetts State Auditor Suzanne M. Bump made the announcement. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
Doctor and Physical Therapist Found Guilty of Participating in $30 Million Scheme to Defraud Medicare and MedicaidRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that medical doctor PAUL J. MATHIEU and physical therapy doctor HATEM BEHIRY were each found guilty of participating in a $30 million scheme to defraud Medicare and the New York State Medicaid Program. The defendants were convicted following a six-week jury trial before U.S. District Judge Lorna G. Schofield.
U.S. Attorney Geoffrey S. Berman said: “These corrupt doctors betrayed their medical training, their professions, and their Medicare and Medicaid billing privileges. They chose not to heal, but to harm, the taxpaying public – the real victims of this scheme.”
According to the evidence presented during the trial and statements made in related court filings and proceedings:
Between 2007 and 2013, MATHIEU fraudulently posed as the owner of three of six medical clinics in Brooklyn (the “Clinics”), which were all in fact owned by co-conspirator Alexksandr Burman. During that time period, the Clinics fraudulently billed Medicare and Medicaid approximately $30 million for medical services and supplies that were medically unnecessary and/or not provided. Throughout this time period, MATHIEU fraudulently posed as the owner of three of those clinics, in order to satisfy a New York State law requirement that medical clinics must be owned and operated by a medical professional.
For the last three-and-a-half years of the scheme, MATHIEU also directly participated in the fraudulent billing practices of the Clinics, by visiting several of the Clinics on a weekly basis, where he would sign stacks of false and fraudulent medical charts, and issue referrals for expensive additional testing, occupational therapy, and physical therapy, including for physical therapy purportedly provided by defendant BEHIRY. During this time period, MATHIEU saw no patients at all, simply falsifying enormous stacks of phony medical records falsely stating that he had seen and treated such patients.
BEHIRY similarly participated in the fraudulent billing practices of the Clinics, by pretending to provide physical therapy to many of those same patients, most of whom were receiving cash kickbacks for coming to the Clinics. In fact, BEHIRY was engaged in an empty charade designed to create the appearance of physical therapy, while almost no therapy was actually being provided to many patients. To further the fraud, BEHIRY also prepared and oversaw the preparation of a huge quantity of phony medical and billing records. Among other things, BEHIRY completed thousands of fabricated reports, in which patients were described almost identically, and with little or no regard for actual medical conditions or needs. As with MATHIEU, many of the charts were for patients whom BEHIRY and his team had not evaluated or provided therapy to at all.
In addition to his role in the Clinics, MATHIEU also wrote unneeded prescriptions for adult diapers and other incontinence products, which were filled at Universal Supply Depot, a medical supply company also owned by Burman’s wife. MATHIEU was so prolific in this regard that, throughout the period of the fraud, he was regularly a top prescriber of adult diapers in the State of New York. MATHIEU continued to write such prescriptions, even after the Clinics were closed down because Medicare stopped paying any of the clinics’ claims.
* * *
PAUL J. MATHIEU, 53, of Morristown, New Jersey, and HATEM BEHIRY, 51, of Brooklyn, New York, were each convicted of one count each of conspiracy to commit health care fraud, mail fraud, and wire fraud; and conspiracy to make false statements relating to a health care program; as well as the substantive offenses of health care fraud, mail fraud, and wire fraud. The conspiracy to commit health care fraud, mail fraud and wire count, and the substantive mail fraud and wire fraud counts each carry a maximum sentence of 20 years in prison. The substantive health care fraud count carries a maximum sentence of 10 years in prison, and the conspiracy to make false statements relating to health care carries a maximum sentence of five years in prison. Each count also carries a maximum fine of $250,000, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the Court.
MATHIEU and BEHIRY bring to 15 the number of defendants convicted in this and related cases. The other defendants include: Aleksandr Burman, 57, the leader of the scheme, who was sentenced in a related case on May 8, 2017, to 120 months in prison; Marina Burman, 56, the former wife of Aleksandr Burman and the owner of Universal Supply Depot, was sentenced on May 17, 2018, to 36 months in prison; Mustak Y. Vaid, 45, a physician, was sentenced on August 1, 2018, to 18 months in prison; Ewald J. Antoine, 68, a physician, was sentenced on August 21, 2018, to 18 months in prison; Asher Oleg Kataev, 50, a Burman business partner, was sentenced on May 31, 2018, to 36 months in prison; Alla Tsirlin, 49, a Clinic office manager, was sentenced on June 5, 2018, to a year and a day in prison; and Edward Miselevich, 46, and Ivan Voychak, 39, Burman partners who jointly ran a related ambulette company, were sentenced on June 12, 2018, and July 19, 2018, respectively, to 36 months in prison each. In addition, Lina Zhitnik, 52, and Dina Cabana Rubenstein, 39, occupational therapists, Valery Volsky, 60, a bookkeeper, Olga Kharuk, 47, and Natalya Grabovskaya, 48, office managers, have each also pled guilty for their participation in this scheme and are awaiting sentencing.
Mr. Berman praised the outstanding work of the Federal Bureau of Investigation, the Office of the Inspector General of the U.S. Department of Health and Human Services, and the New York State Office of the Medicaid Inspector General.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys David Raymond Lewis, Stephen J. Ritchin, and Timothy V. Capozzi are in charge of the prosecution.
Department of Justice Files Statement of Interest in Vermont First Amendment Free Exercise CaseRead the Press Release
The Department of Justice today filed a Statement of Interest in the U.S. District Court for the District of Vermont supporting parents and parochial high school students who claim that the State discriminated against them in violation of the Free Exercise Clause of the U.S. Constitution by barring them from a state program paying tuition for high school students to take up to two college courses.
The case, A.M. v. French, involves children attending religious schools who challenge their exclusion from Vermont’s “Dual Enrollment Program.” This program provides Vermont high school students the opportunity to take up to two college courses while still in high school, with tuition paid by the State. It is open to public school students, home school students, and students attending nonreligious private schools who do not have a public high school in their school district. The program, however, excludes those students without public high school in their district who choose to attend private religious schools.
“The Constitution’s First Amendment makes clear that students may not be excluded from education programs like the Dual Enrollment Program because of their religious status or their religious choices,” said Assistant Attorney General Eric Dreiband. “The Department of Justice is committed to ensuring that all persons may participate in benefit programs without discrimination based on their faith.”
“Religious liberty is a fundamental and foundational right in this country,” said Christina Nolan, U.S. Attorney for Vermont. “We support the rights of students to both exercise their religion and participate fully in Vermont’s educational programs. We hope this case advances the twin paramount goals of maximizing educational opportunities for young Vermonters and vigilantly guarding religious freedom.”
The United States’ Statement of Interest emphasizes that excluding parochial school students from the Dual Enrollment Program would provide them with the same secular educational benefit—tuition at various local colleges—offered to other students. Excluding students from this secular benefit because they have chosen religious rather than nonreligious private schools is impermissible. The United States notes that two years ago, in Trinity Lutheran Church of Columbia v. Comer, the Supreme Court held that “denying a generally available benefit solely on account of religious identity imposes a penalty on the free exercise of religion,” and may only be justified by the most compelling governmental interests, which Vermont has not shown.
Today’s filing addresses issues set forth in the Department of Justice’s Guidance on Federal Law Protections for Religious Liberty issued on Oct. 6, 2017 at the direction of President Trump’s May 4, 2017, Executive Order Promoting Free Speech and Religious Liberty. The Department of Justice Guidance states that “government may not target persons or individuals because of their religion” and observes that “constitutional protections for religious liberty are not conditioned upon the willingness of a religious person or organization to remain separate from civil society . . . . Individuals do not give up their religious-liberty protections by providing or receiving social services, education, or healthcare.”
In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together Department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
Department of Justice Files Lawsuit Alleging Violations of the Fair Housing Act and Americans with Disabilities Act in 82 Apartment Complexes in 13 StatesRead the Press Release
CINCINNATI – The Department of Justice and the U.S. Attorney’s Office for the Southern District of Ohio today announced the filing of a lawsuit against Ohio-based Miller-Valentine Operations Inc. and affiliated companies, owners, developers and builders of 82 multifamily housing complexes located in Illinois, Indiana, Iowa, Kansas, Kentucky, Missouri, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas and West Virginia.
The lawsuit alleges that the defendants failed to design and construct housing units and related facilities to make them accessible to persons with disabilities in compliance with the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA). The 82 complexes contain more than 3,000 units that are required by the FHA to have accessible features, and most contain public spaces that are required to comply with the ADA.
According to the government’s complaint, the defendants built many of the complexes with the assistance of federal Low-Income Housing Tax Credits or with the financial assistance of other federal government programs.
“For over two decades federal laws have required multifamily housing complexes to be built with accessible features,” said Assistant Attorney General Eric Dreiband. “The Department of Justice is committed to protecting the rights of persons with disabilities to equal access to housing opportunities, including accessible dwellings and related facilities.”
“We’re in the business of enforcing federal civil rights laws to their fullest extent,” said U.S. Attorney Glassman “It doesn’t matter to us whether the defendant is an individual in a single neighborhood or, as here, a company operating in many states. The complaint that the United States filed today alleges not only that Miller-Valentine designed and built multi-family housing complexes that are not accessible to people with disabilities, but also that Miller-Valentine took public money to build those complexes and yet still built them such that some citizens wouldn’t be able to live there.”
The lawsuit, which was filed in Cincinnati today, alleges that the 82 properties have significant accessibility barriers, including steps leading to building entrances; non-existent or excessively sloped pedestrian routes from apartment units to site amenities (e.g., picnic areas, dumpsters, clubhouse/leasing offices); inaccessible parking; inaccessible bathrooms and kitchens; inaccessible door hardware; and insufficient maneuvering space at unit entrances and entrances to common use areas that make those entrances inaccessible to many people with disabilities.
The lawsuit seeks an order (1) requiring the defendants to bring the properties into compliance with the FHA and the ADA, (2) requiring the defendants to pay monetary damages to persons harmed by the lack of accessibility and civil penalties to the United States to vindicate the public interest, and (3) prohibiting the defendants from designing or constructing future residential properties in a manner that discriminates against persons with disabilities.
The complexes at issue are:
Ohio
- Aspen Grove Apartments, Middletown
- Bent Tree Apartments I, Piqua
- Bent Tree Apartments II, Piqua
- Breckenridge Apartments, Findlay
- Bridge Street Landing, Chillicothe
- Brookdale Trillium Crossing, Columbus
- Brookstone Apartments, Bellefontaine
- Carriage Trails Senior Villas, Huber Heights
- Cedar Trail, Bellbrook
- Cedar Wood Apartments, Mansfield
- Cobblegate Square Apartments, Moraine
- Deerfield Crossing, Lebanon
- Eagles Point Apartments, Kenton
- Faith Community Housing, Crestline
- Fox Run, Trotwood
- Glen Arbors Apartments, Napoleon
- Harbour Cove Apartments, Cincinnati
- Harmony Senior Village, Williamsburg
- Holly Hills Apartments, Jackson
- Hoover Place, Dayton
- Hunter’s Oak Apartments, Greenville
- Indian Trace I, Oxford
- Indian Trace II, Oxford
- Lake Towne Senior, Walbridge
- Lofts at Hoover, Dayton
- Lofts at One West High Street, Oxford
- Lyons Place I, Dayton
- Lyons Place II, Dayton
- Mallard Glen, Amelia
- Mallard Landing, Marion
- Meadow Creek Apartments, Bryan
- Meadow View South, Springboro
- Oak Wood Apartments, Lexington
- Pheasant Run Senior, Dayton
- Pine Ridge, Logan
- Quail Run Apartments, Van Wert
- Queen Esther’s Village, Canton
- Riverside Landing at Delaware Place, Delaware
- Riverview Bluffs, New Richmond
- Sandhurst, Zanesville
- Scioto Woods I, Chillicothe
- Scioto Woods II, Chillicothe
- Siena Village Senior Living, Dayton
- St. Bernard Commons, St. Bernard
- St. Rita’s Senior Housing, Garfield Heights
- Stone Creek Apartments, Moraine
- Sycamore Creek Apartments, Sidney
- Timber Glen II, Batavia
- Timber Ridge Apartments, Dayton
- Timberlake Apartments, Vandalia
- Walnut Run Senior Villas, Cortland
- Waterstone Landing, Perrysburg
- Whitehouse Square Senior Villas, Whitehouse
- Wind Ridge Apartments, Tipp City
- Windsor Place, Beavercreek
- Wright Place Apartments, Xenia
Other states
- Allegheny Pointe, Apollo, Pa.
- Fairway Breeze Apartments, El Reno, Okla.
- Galena Estates, Galena, Kan.
- Gallatin Park Apartments, Gallatin, Texas
- Hampshire Landing, Joplin, Mo.
- Honey Creek, Greenwood, Ind.
- Madison Place Senior, Gastonia, N.C.
- Meadow Vista Senior Villas, Altoona, Iowa
- Mill Pond, Muncie, Ind.
- Oak Ridge Apartments, Nolanville, Texas
- Pinecrest Apartments, Walkertown, N.C.
- Reserve at Oak Spring, Clarksburg, W.Va.
- Reserve at Spencer, Spencer, Okla.
- River Crossing, Charlotte, N.C.
- Silversage Point at Western Center, Fort Worth, Texas
- Summit Pointe, Lawrenceburg, Ind.
- The Enclave at Winston-Salem, Winston-Salem, N.C.
- The Landings at Steele Creek I, Charlotte, N.C.
- The Landings at Steele Creek II, Charlotte, N.C.
- Twin Cedars I, Hickory, N.C.
- Twin Cedars II, Hickory, N.C.
- Twin Lakes Senior Villas, Rantoul, Ill.
- Villas at Twin Cedars, Hickory, N.C.
- Walkers Ridge Apartments, Greensburg, Pa.
- Waterbury Apartments, Decatur, Ind.
- Weaver Farm Apartments, Florence, Ky
Anyone with information about the inaccessible conditions at these properties should call the Department of Justice at 1-800-896-7743, and follow the prompts to enter mailbox number 9996, or send an e-mail to [email protected].
The FHA prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. Among other things, it requires all multifamily housing constructed after March 13, 1991, to have basic accessibility features, including accessible routes without steps or steep slopes to all ground-floor units. Enacted in 1990, the ADA requires, among other things, that places of public accommodation -- such as rental offices -- at multifamily housing complexes designed and constructed for first occupancy after Jan. 26, 1993, be accessible to persons with disabilities. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt.
The complaint contains allegations of unlawful conduct; the allegations must be proven in court.
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Dentist Pleads Guilty to Running Oxycodone ConspiracyRead the Press Release
NORFOLK, Va. – A Virginia Beach dentist pleaded guilty today to conspiracy to distribute oxycodone pills without a legitimate medical purpose.
“Unethical doctors have no place in our communities,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Hartman used his medical license to push highly addictive pills throughout our community, and deliberately used addicted close friends, other medical professionals, and impoverished patients to obtain these dangerous drugs. Let this prosecution stand as a warning to other medical professional who choose to engage in similar activity: We will not cease our efforts in bringing these types of pill-pushers to justice.”
According to court documents, Gary Hartman, 48, has been a licensed dentist in Virginia since 2002. From 2014 to 2018, Hartman was involved in an elaborate scheme to prescribe oxycodone pills for his personal use and the use of his co-conspirators, which fell into three different categories of individuals. The first category of co-conspirators were close friends of Hartman since high school. Hartman would write prescriptions for oxycodone to his friends without a legitimate medical purpose, the friends would fill the prescriptions, bring back most of the pills for Hartman’s personal use and keep the remainder for their personal use. The second category of co-conspirators was another dentist. Hartman and the other dentist would write prescriptions to each other for oxycodone and muscle relaxants for the personal use of Hartman and the other dentist. The third category of co-conspirators were people who were impoverished. Hartman would promise to perform free dental work on these individuals in exchange for the service of filling prescriptions of oxycodone pills written by Hartman and bringing the pills back to Hartman for his personal use. This conspiracy involved 766 prescriptions written for non-medical reasons and almost 40,000 oxycodone pills.
Hartman pleaded guilty to conspiracy to distribute controlled substances and faces a maximum penalty of 20 years in prison when sentenced on October 2. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after Senior U.S. District Judge Henry Coke Morgan, Jr. accepted the plea. Assistant U.S. Attorneys William D. Muhr and V. Kathleen Dougherty 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. 2:19-cr-48.
Citizen of Peru Charged with Illegally Reentering U.S.Read the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that, on May 1, 2019, a federal grand jury in New Haven returned an indictment charging CESAR RUBEN YLLESCAS, 45, a citizen of Peru last residing in Hartford, with one count of illegally reentering the U.S. after being deported.
Yllescas was arrested yesterday in Hartford. He appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford, entered a plea of not guilty to the charge and was ordered detained.
As alleged in court documents and statements made in court, on August 1, 2014, Yllescas was arrested by Hartford Police for possession of narcotics. On December 21, 2015, he pleaded guilty in state court to the drug offense and to a charge of failing to appear for a related court appearance. After serving approximately six months of imprisonment, he was removed to Peru in June 2016.
If convicted of the charge of illegal reentry, Yllescas faces a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that an indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial at which it is the government’s burden to prove guilt beyond a reasonable doubt.
This matter is being investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorney Margaret E. Maigret.
Chicago Software Developer Sentenced to Prison for Fraudulently Obtaining Federal Grant MoneyRead the Press Release
CHICAGO — A Chicago software developer has been sentenced to three months in federal prison for fraudulently obtaining $200,000 in grant funds from the National Aeronautics and Space Administration and the National Science Foundation.
MIROSLAV VELEV, a mathematician with a doctorate in electrical and computer engineering, operated the Chicago-based software development and consulting company Aries Design Automation LLC, which developed methods to solve electronic design automation problems. Velev sought and obtained federal grant funds for his company through the Small Business Innovation Research program, which provides opportunities for small businesses to participate in federally-sponsored research and development. Aries was awarded a total of $200,000 in grants from NASA and the NSF after Velev made materially false representations about the company’s financial condition.
Velev, 50, of Chicago, pleaded guilty last year to one count of conversion of government funds, a misdemeanor. U.S. District Judge Gary Feinerman on Wednesday sentenced Velev to three months in federal prison. Velev previously paid restitution of $150,000 to NASA and $50,000 to the NSF.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Curtis Vaughn, Special Agent-in-Charge of the Office of Investigations of NASA’s Office of Inspector General, Eastern Field Office; and Jennifer Springmann, Special Agent-in-Charge of the NSF’s Office of Inspector General’s Civil, Criminal and Program Integrity Division.
“Absent Velev’s fraud and false statements, his proposals would not have been approved and he would not have been awarded federal funds,” Assistant U.S. Attorney William R. Hogan, Jr., argued in the government’s sentencing memorandum. “By intentionally deceiving the government, Velev personally benefitted at the expense of another eligible small business, and at the expense of the taxpayers who funded the SBIR program.”
“This investigation exposed an individual that used federal funds to advance his own personal gain,” said SAC Vaughn. “I applaud the outstanding efforts of our agents and law enforcement partners.”
“The Small Business Innovation Research Program is a valuable tool in advancing NSF’s mission to promote the progress of science by increasing opportunities for small businesses to undertake cutting-edge scientific research,” said SAC Springmann. “It is essential to protect the integrity of this program. The NSF Office of Inspector General is committed to vigorously pursuing oversight of these taxpayer funds, and I commend the U.S. Attorney’s Office and our investigative partners for their support in this effort.”
The SBIR program required applicant companies to show independent, third-party investments or commitments of investments in their projects. Velev admitted in a plea agreement that he falsely represented to NASA and the NSF that Aries had received the required independent investment from an individual investor. Velev fraudulently submitted in his grant proposals a screenshot of his company’s bank account that reflected a funds transfer from the purported investor. In reality, the investor did not exist, and Velev had routed his own money into the account to support the false appearance of an investment.
Velev also submitted in his grant proposals an “investment letter” that identified a Chief Financial Officer for the purported investor. In fact, the alleged CFO was an acquaintance of Velev’s wife and had no connection with an investment in Aries.
Cheektowaga Man Sentenced for Buying and Selling Counterfeit AirbagsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Raymond Whelan, 49, of Cheektowaga, NY, who was convicted of conspiracy to traffic in counterfeit goods, was sentenced to serve 24 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that between June 2015 and March 2016 the defendant operated an online automobile parts business known as Rayscarparts71.com. From this website Whelan sold counterfeit automobile air bags bearing counterfeit trademarks of Honda, Toyota, Nissan, Subaru, Mazda, Hyundai, Acura, and Mitsubishi. The counterfeit air bags Whelan sold were obtained from co-defendant David Nichols whose role was to find Chinese supply sources.
In order to avoid detection during importation, the airbags were mislabeled or arrived unassembled. Whelan would then assemble the air bags before selling them even though he had little to no knowledge on how to do so. The air bags were listed on eBay as genuine used airbags designed to fit Honda, Toyota, Nissan, Subaru, Mazda, Hyundai, Acura, and Mitsubishi.
During the investigation, multiple undercover purchases were made from Rayscarparts71 and airbags were seized from the defendant’s business. All the purchased and seized airbags were determined to be counterfeit and none of the automobile manufacturers authorized the defendant to utilize their trademarks.
Whelan imported and sold more approximately 360 counterfeit automobile airbags with an average manufacturer’s retail price of $650.00. The total infringement amount was $236,600.
Co-defendant David Nichols was previously convicted and is awaiting sentencing.Today’s sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly and Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations.
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Carolina Physical Therapy and Sports Medicine, Inc. to Pay $790,000 to Resolve False Billing AllegationsRead the Press Release
COLUMBIA, South Carolina ---- United States Attorney Sherri A. Lydon announced today that the United States Attorney’s Office for the District of South Carolina has resolved claims of health care fraud with Carolina Physical Therapy and Sports Medicine, Inc. (“Carolina PT”). Carolina PT was a chain of nine physical therapy practices headquartered in Columbia, South Carolina, with practice locations in Columbia, Irmo, Lexington, Sumter, and Mount Pleasant.
The United States contended that Carolina PT knowingly submitted claims to Medicare and TRICARE for services provided to multiple patients simultaneously as though the services were being provided by a physical therapist or physical therapist assistant to one patient at a time. As a result, Carolina PT received higher reimbursements than it would have if it had accurately represented the services. Additionally, the United States contended that Carolina PT knowingly submitted claims to Medicare and TRICARE for services provided by physical therapy assistants who were not supervised by a physical therapist, as required. Finally, the United States contended that Carolina PT knowingly submitted claims for attended electrical stimulation services when those services were in reality not attended by a licensed therapist or assistant and should have been billed as a lower cost unattended electrical stimulation service.
This settlement resolves a lawsuit originally filed in the United States District Court for the District of South Carolina by Hilary Moore, a former employee of Carolina PT, under the qui tam or whistleblower provisions of the False Claims Act, which permit private citizens to bring lawsuits on behalf of the United States and share in any recovery. Moore will receive $142,200 from the settlement, and her attorneys will recoup fees from Carolina PT in the amount of $38,000.
“Medical billing fraud drives up the cost of healthcare and diverts critical resources from federal healthcare programs,” U.S. Attorney Lydon said. “Whistle blower suits, like this one, are one of the government’s most effective tools at detecting fraud and protecting the integrity of our burdened healthcare system. The U.S. Attorney’s Office for the District of South Carolina will continue to pursue companies and providers that defraud federal health care programs.”
“Carolina PT inflated bills sent to federal health programs, the government contended,” said Derrick L. Jackson, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services. “People who depend on medical care through these programs, and taxpayers who provide the funding, deserve much better. We will continue to work with the U.S. Attorney and other law enforcement partners to safeguard these services.”
“I applaud the Department of Justice and the U.S. Attorney for their continued efforts to hold health care providers accountable to the American taxpayer,” said Vice Adm. Raquel Bono, director of the Defense Health Agency. “The efforts of the Department of Justice safeguard the health care benefit for our service members, veterans and their families. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices.”
The case was investigated by the U.S. Attorney’s Office for the District of South Carolina, the Defense Criminal Investigative Service (“DCIS”) and the U.S. Department of Health and Human Services Office of Inspector General (“HHS-OIG”). The civil settlement was reached by Assistant United States Attorney Beth Warren of the Columbia office.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected].
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Canadian Resident Pleads Guilty to Alien SmugglingRead the Press Release
ALBANY, NEW YORK – Hector Vinicio Howell-Calvo, age 51, a legal resident of Canada and citizen of Costa Rica, pled guilty today to smuggling three Mexican citizens from Canada to the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Steven Bronson, United States Customs and Border Protection Port Director for the Champlain Port of Entry.
During his plea, Howell-Calvo admitted to smuggling three men who were Mexican citizens into the United States in exchange for a total of 9,000 Canadian dollars. Howell-Calvo further admitted that he drove the men from Montreal to the Canadian border just north of Mooers, New York. Howell-Calvo then dropped off the men, who crossed the international border on foot, and intended to pick them up on the United States side of the border, after Howell-Calvo had entered the United States separately through the Mooers Port of Entry.
Sentencing is set for September 18, 2019 before Chief United States District Judge Glenn T. Suddaby. Howell-Calvo faces at least 5 years and up to 15 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by U.S. Customs and Border Protection and U.S. Border Patrol, and is being prosecuted by Assistant U.S. Attorney Shira C. Hoffman.
California Man Charged with Federal Hate Crimes for Poway Synagogue ShootingRead the Press Release
The Department of Justice today charged a California man with federal hate crimes, including the murder of one person and the attempted murder of 53 others, for his actions during the April 27 shooting at the Chabad of Poway Synagogue in California. Assistant Attorney General Eric Dreiband for the Civil Rights Division, U.S. Attorney Robert S. Brewer, Jr. for the Southern District of California, and San Diego FBI Acting Special Agent in Charge Suzanne Turner made the announcement.
“No one in this country should be subjected to violence, injury, or death for who they are or for their religious beliefs,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Department will vigorously prosecute those who commit hate crimes and acts of domestic terrorism, and we will continue to work with our state and local partners to bring to justice anyone who violates the civil rights of Americans.”
“We will not allow our community members to be hunted in their houses of worship, where they should feel free and safe to exercise their right to practice their religion,” said U.S. Attorney Robert S. Brewer, Jr. “Our actions today are inspired by our desire to achieve justice for all of the victims and their families.”
"The FBI is steadfast in our commitment to gather all the facts and ensure justice is served in this case," said FBI San Diego Acting Special Agent in Charge Suzanne Turner. "As we work together to bring justice and begin the healing process, our community has shown extraordinary strength and unity on so many levels-from our law enforcement partners, diverse faith-based communities, and extending to our citizens and neighbors."
John T. Earnest, 19, of Rancho Peñasquitos, California, was charged by criminal complaint with 109 hate crimes violations.
According to the affidavit in support of the criminal complaint, on April 27, Earnest drove to the Chabad of Poway Synagogue, where members of the congregation were gathered to engage in religious worship celebrating Shabat and last day of Passover. Earnest entered the building armed with an AR-15 style semi-automatic rifle that was fully loaded with a 10-round magazine. He wore a chest rig, which contained five additional magazines, each loaded with 10 rounds of ammunition. The affidavit alleges that while inside the Poway Synagogue, Earnest opened fire, killing one person and injuring three other members of the congregation, including a juvenile. During a pause when Earnest unsuccessfully attempted to reload his firearm, several congregant members, including an off-duty Border Patrol Agent, chased Earnest as he fled from the Synagogue. Earnest fled the scene in his car, but was subsequently apprehended by law enforcement authorities who discovered the AR-15 and additional magazines of ammunition in his car.
The affidavit further alleges that after the shooting, law enforcement investigators found a manifesto online bearing Earnest’s name. A copy of the mainfesto was later found on Earnest’s laptop during the execution of a search warrant. In the manifesto, Earnest made many anti-Semitic and anti-Muslim statements. Specifically, Earnest referred to “Jews” as a race, and he stated his only regret was that he did not kill more people.
According to the affidavit, Earnest also admitted in the manifesto to the arson of an Escondido Mosque in March 2019. The affidavit alleges that on March 24, seven individuals were inside the mosque when they smelled gasoline and saw flames coming through the crack of one of the mosque’s doors. The individuals put out the fire, but not before the fire had damaged the exterior of the mosque. The affidavit further alleges that surveillance video showed a suspect arriving at the mosque in the same type of vehicle Earnest used in committing the attack on the Synagogue. The defendant allegedly claimed in his manifesto that he was inspired by the Tree of Life synagogue shooting in Pittsburgh, Pennsylvania, and the recent shootings at two mosques in New Zealand.
Specifically, the complaint charges 109 hate crimes violations:
- 54 counts of obstruction of free exercise of religious beliefs using a dangerous weapon, resulting in death, bodily injury, and attempts to kill;
- 54 counts of violating the Mathew Shepard and James Byrd Jr. Hate Crimes Prevention Act;
- One count of damage to religious property by use of fire in relation to the attempted arson of the mosque.
Assistant United States Attorneys Shane Harrigan, Peter Ko, John Parmley, and Caroline Han, along with Trial Attorney Rose Gibson of the Civil Rights Division, are prosecuting this case on behalf of the government. The FBI, San Diego Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
Earnest faces a maximum possible penalty of death, or life without parole. He is currently in state custody pending state criminal charges.
All charges and the complaint are merely allegations and the defendant is presumed innocent unless proven guilty in a court of law.
Bruce Williams Sentenced to 60 Months in PrisonRead the Press Release
HAMMOND – Bruce Williams, 48 years old, of Gary, Indiana, was sentenced by U.S. District Court Judge James T. Moody after pleading guilty to possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Kirsch.
Williams was sentenced to 60 months in prison followed by 2 years of supervised release.
According to documents in the case, on October 24, 2017, law enforcement purchased heroin from Williams in Lake Station, Indiana. Williams was in his vehicle at the time and had a handgun inside the vehicle. When law enforcement stopped Williams’ vehicle, they found the handgun.
This case was investigated by the DEA, in conjunction with the Porter County Multi-Enforcement Group and the Indiana State Police with the assistance of ATF. The case was handled by Assistant United States Attorney Jennifer Chang.
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Brooklyn Man Arrested for Drug-Related, Drive-By ShootingRead the Press Release
Earlier today, defendant Steven Bynum was arrested and charged with firing a handgun into a group of people in furtherance of a drug distribution conspiracy on September 10, 2017, when he shot a pregnant innocent bystander in the head during a drug dispute. Bynum’s initial appearance is scheduled for this afternoon before United States Magistrate Judge Peggy Kuo. If convicted of the charges, Bynum faces up to life imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John B. Devito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.“As alleged in the complaint, Bynum showed no regard for human life when he opened fire in the middle of the day on a group of people standing on Dean Street in Brooklyn, severely wounding a pregnant bystander,” stated United States Attorney Donoghue. “The Eastern District will continue working tirelessly with our local and federal partners to hold violent drug traffickers responsible for their activities that put the entire community in danger.”
“As alleged, Bynum committed a brazen act of violence that showed a reckless disregard for his fellow citizens,” stated ATF Special Agent-in-Charge Devito. “He is an example of the type of violent individual that presents a clear and present danger to the law abiding people in the community. The ATF-NYPD Joint Robbery Task Force stands committed to protecting the public from individuals like Bynum that spread violence and fear in their community. I would like to thank the United States Attorney’s Office for their work on this case.”“Gun violence has no place in New York City. In working to reduce crime past already record-lows in New York City, the NYPD is relentless in our pursuit of the relatively small percentage of the population driving the violence and disorder. I commend the NYPD detectives, U.S. Attorney for the Eastern District, and the members of ATF, involved in this investigation whose work resulted in this arrest. Together, we are making the safest large city in America even safer,” stated NYPD Commissioner O’Neill.
According to the complaint, on September 10, 2017 at 12:40 p.m., Bynum was driving a silver Nissan Altima when he fired shots toward a group of people standing in front of 2065 Dean Street in Brownsville. A bystander, who was five-months pregnant at the time, was shot in the head, but survived. A witness to the shooting told members of law enforcement that Bynum was attempting to murder another individual in the group because of a dispute over drugs.
The charges announced today are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s International Narcotics & Money Laundering Section. Assistant United States Attorneys Tyler J. Smith and Francisco J. Navarro are in charge of the prosecution.
The Defendant:
STEVEN BYNUM (also known as “Nitty”)
Age: 37
Brooklyn, New YorkE.D.N.Y. Docket No. 18-MJ-427
Brazilian National Sentenced for ATM SkimmingRead the Press Release
BOSTON – A Brazilian national was sentenced yesterday in federal court in Boston for ATM skimming.
Alexandre Kawamura, 43, was sentenced by U.S. District Court Judge Leo T. Sorokin to 30 months in prison, three years of supervised release, and ordered to pay $199,078 in restitution. In February 2019, Kawamura pleaded guilty to two counts of using counterfeit access devices (debit and credit cards), four counts of possessing device-making equipment (ATM skimming devices and pinhole cameras), and two counts of aggravated identity theft. Kawamura, who legally entered the U.S. on a tourist visa, will be subject to deportation after he completes his sentence.
Kawamura placed hidden skimming devices and pinhole cameras on Eastern Bank ATMs in Saugus, Stoneham, Medford, and Everett, every day between February 25 and March 16, 2018, when he was arrested. The purpose of the skimming devices was to record bank account information on the magnetic strips of debit and credit cards that unwitting victims inserted into the ATMs. The purpose of the pinhole cameras was to capture the victims’ PINs as they were entered on the ATM keypads.
On March 8, 2018, Kawamura possessed a counterfeit debit card with a magnetic strip that contained the stolen bank account number of a Milton woman. At an ATM in Malden, Kawamura used the card and the victim’s PIN to withdraw $500 cash from the victim’s account.
On March 16, 2018, Kawamura used a counterfeit credit card to buy clothing at a sporting goods store in Medford. The name on the card was an alias, and the card’s magnetic strip contained the stolen Eastern Bank account number of a Medford man, whose account had been compromised the day before.
Kawamura was arrested on March 16 after a bank customer called police to report that he had found a skimming device on a drive-up ATM at an Eastern Bank branch in Stoneham. Police responded and discovered that the pinhole camera was still attached to the ATM. They set up surveillance and waited for the suspect to return. Kawamura drove up to the ATM in a rental car shortly before 11 pm. He appeared to look for the skimming device and then drove off. Stoneham police stopped the car and discovered that the driver had a Brazilian passport in his real name and had rented the car under an alias. Kawamura was in possession of the counterfeit credit card that he had just used to buy clothing at the sporting goods store.
Prior to skimming in Massachusetts, Kawamura had skimmed ATMs in and around Austin and San Antonio, Texas. He was caught on bank surveillance cameras skimming at University Federal Credit Union and Randolph Brooks Federal Credit Union ATMs in November and December 2017.
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. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit prosecuted the case.
Bentonville Man Sentenced to 7 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Matthew Woodrome, age 36, of Bentonville, Arkansas, was sentenced yesterday to 84 months in federal prison followed by three years of supervised release for one count of Possession of Heroin with Intent to Distribute. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in July of 2018, detectives with the Rogers Police Department received information that Woodrome was in possession of heroin and that he could be located at a hotel in Bentonville Arkansas. Officers conducting surveillance at the hotel knew Woodrome was on probation and that he had a search wavier on file. Officers observed Woodrome arrive at the hotel and exit his vehicle. Officers made contact with Woodrome and searched his person. The search resulted in officers locating four baggies that contained heroin. The heroin possessed by Woodrome was sent to the DEA Laboratory for testing. The lab determined the substance to be 5.38 grams of heroin.
Woodrome was indicted by a federal grand jury in September 2018, and entered a guilty plea in November 2018.
This case was investigated by the Drug Enforcement Administration (DEA), the Fourth Judicial District Drug Task Force, and the Benton County Sheriff’s Office. Assistant United States Attorney’s Kimberly Harris and Dustin Roberts prosecuted the case for the United States.
Belmont Resident Sentenced to 60 Months for Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD – Heidi Langevin, 44 of Belmont, New Hampshire, was sentenced to serve 60 months in prison for participating in a fentanyl trafficking conspiracy, United States Attorney Scott W. Murray announced.
According to court documents and statements made in court, Langevin sold fentanyl and methamphetamine to an individual who was cooperating with the FBI on two separate occasions at locations in and around New Hampshire. On May 31, 2017, Langevin arranged for several men to purchase fentanyl from a supplier in Lawrence, Massachusetts. The men drove together from Belmont to Lawrence. In Lawrence, the men met with their drug supplier, purchased a quantity of fentanyl, and then drove back to New Hampshire. On the highway near Derry, the New Hampshire State Police conducted a traffic stop and seized a firearm and a package containing approximately 111 grams of fentanyl.
Langevin previously pleaded guilty on October 30, 2018.
“The five-year prison sentence imposed in this case should send a message to interstate drug traffickers” said U.S. Attorney Murray. “Law enforcement officers are watching and federal prison sentences await those who get caught. We will continue to work closely with the FBI, New Hampshire State Police, Laconia Police Department, and all of our law enforcement partners to identify, prosecute, and incarcerate those who are responsible for bringing deadly drugs into the Granite State.”
“This case is just another example of how the FBI and our law enforcement partners are working together to target and dismantle drug trafficking organizations that are threatening the safety and stability of our neighborhoods,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Our Safe Streets Gang Task Force will continue to aggressively investigate criminal organizations that target our communities with their drug-related activity and ensure they are held accountable.”
This matter was investigated by the FBI, the New Hampshire State Police, and the Laconia Police Department. The case is being prosecuted by Assistant U.S. Attorney Anna Z. Krasinski.
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Beaver County Man Charged with Heroin PossessionRead the Press Release
PITTSBURGH – A Beaver County resident of New Brighton, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned yesterday, names Terrance Shelby, 34, of New Brighton as the defendant. According to the Indictment, on February 18, 2019, Shelby possessed with intent to distribute a quantity of heroin.
If convicted, the law provides for a maximum total sentence of not more than 20 years in prison, a fine of up to $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Center Township Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bank Employee Charged with Fraud; Accused of Laundering Money for Fentanyl TraffickersRead the Press Release
Assistant U. S. Attorney Blanca Quintero (619) 546-7118
NEWS RELEASE SUMMARY – May 9, 2019
SAN DIEGO – Leopoldo Aguilera, a former Wells Fargo personal banker, appeared in federal court today in connection with charges that he used his position to launder millions of dollars for Mexico-based drug traffickers.
Aguilera was arrested by FBI agents on May 2, 2019, on charges of bank fraud for his participation in an international money laundering organization based in Tijuana, Mexico, and which operated primarily in San Diego.
At today’s hearing, U.S. Magistrate Judge Jill L. Burkhardt allowed the defendant to be released on a $40,000 bond secured by two financially responsible adults. The judge also ordered that the defendant be subject to home detention and GPS monitoring.
According to the complaint, Aguilera abused his position of trust as a personal banker with Wells Fargo Bank and aided the money laundering organization by wire transferring millions of dollars to Mexico. The FBI’s investigation linked these funds to the sale of narcotics, specifically the sale of multi-kilogram amounts of fentanyl in the Midwest.
According to the complaint, with the knowledge of the money laundering organization’s structure, scheme, and objectives, Aguilera performed a litany of financial transactions for the criminal organization. For instance, he opened 26 bank accounts at Wells Fargo Bank and executed 229 international wire transfers totaling $7.4 million.
Of the 26 bank accounts that Aguilera opened for the organization, 11 of them were created by Aguilera with fictitious identities. Specifically, Aguilera used his position as a personal banker with Wells Fargo Bank to knowingly enter false names, passport numbers, and dates of birth on the 11 fictitious bank accounts. These fictitious bank accounts alone were used by the criminal organization to wire transfer a total of $3.1 million to Mexico, the vast majority of those wire transfers conducted by Aguilera himself.
As part of the investigation, the FBI identified and seized 17 bank accounts that belonged to the organization and which contained at least $160,000 at the time of the seizure of the funds.
The investigation found that Aguilera had received approximately $4,000 in cash payments from the criminal organization in exchange for his participation in the scheme.
The case was investigated by the FBI San Diego Cross Border Violence Task Force and the U.S. Attorney’s Office for the Southern District of California. The investigation was assisted by the participation of Wells Fargo Bank’s internal investigators in Arizona and California. This case is being prosecuted by Assistant U.S. Attorney Blanca Quintero.
DEFENDANT Case Number: 19-MJ-1801-JLB
Leopoldo Aguilera Age: 57 Tijuana, Mexico
SUMMARY OF CHARGES
Bank Fraud (18 U.S.C. 1344)
Maximum Penalties: Thirty years in prison, $1 million fine
AGENCIES
Federal Bureau of Investigation’s San Diego Cross Border Violence Task Force
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Austin Man Pleads Guilty to Fraudulent Scheme to Solicit Hundreds of Thousands of Dollars in Contributions to Scam-PacsRead the Press Release
An Austin, Texas, entrepreneur pleaded guilty today for fraudulently soliciting hundreds of thousands of dollars in political contributions through several scam-PACs that he founded and advertised as supporting candidates for the Office of the President of the United States during the 2016 election cycle.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division made the announcement.
Kyle Gerald Prall, 40, of Austin, Texas, pleaded guilty to one count of mail fraud before U.S. Magistrate Judge Andrew W. Austin of the Western District of Texas. A sentencing hearing has not yet been scheduled.
“Prall exploited the honest political engagement of countless citizens by representing that his organizations were supporting presidential candidates when in fact he was just stealing contributions,” said Assistant Attorney General Benczkowski. “In addition to cheating people out of their money, fraud committed in connection with our elections corrodes public confidence in our democratic institutions. The Department of Justice is committed to investigating and prosecuting these crimes.”
“Making donations to a political cause, campaign or candidate is an important expression of free speech and a right all Americans should enjoy,” said Special Agent in Charge Combs. “By misappropriating the donations for his own personal use, the defendant not only violated the trust of his victims, he also deprived them of their fundamental right to free speech. The FBI is committed to protecting this right, and holding individuals, like the defendant accountable. Before making donations citizens should be mindful of this unscrupulous fraud scheme and exercise due diligence in researching the legitimacy of an organization.”
According to admissions made in connection with his plea, in 2015 and 2016, Prall created several political committees—including Feel Bern, HC4President and Trump Victory—which he advertised online to solicit contributions purportedly in support of presidential candidates in the 2016 election. Prall advertised that the contributions would be used to support the candidates in various ways, including paying for transportation for voters to the polls; paying for training for volunteers to make phone calls and canvass neighborhoods to support the respective candidates; paying to help voters obtain appropriate identification documents and making contributions directly to one of the candidates and to other organizations supporting his campaign. In reality, Prall did not intend to, and did not, use the contributions for these purposes and instead transferred much of the money to himself through sham LLC accounts and used the other funds to generate additional contributions to his fraudulent political committees. Specifically, Prall admitted that of the $548,428 in contributions, he transferred $205,496 to himself through sham LLCs that he created for the purpose of moving the money, while contributing less than $5,100 to political causes. Additionally, Prall used the political committees’ debit cards to pay for his personal travel and entertainment expenses, such as travel to Jacksonville, Florida and Belize; hotel stays in Miami Beach, Florida, and Austin, Texas; and to pay for food, hookah, alcohol and bottle service, “club dances performed by entertainers,” room service, minibar charges, a deep-tissue massage and a pet-cleaning fee.
As part of his plea, Prall agreed to pay restitution in the amount of $548,428—the total amount he raised—including the forfeiture of the $205,496.68 he transferred to himself through sham LLCs during the scheme.
The FBI’s San Antonio Division is investigating the case. Deputy Chief John D. Keller and Trial Attorney James C. Mann of the Criminal Division’s Public Integrity Section are prosecuting the case.
Attorney General William Barr Meets with Minister of Justice of JapanRead the Press Release
On Friday, May 3, 2019, Attorney General William Barr met with Japanese Minister of Justice Takashi Yamashita at the Justice Department in Washington, DC. The dialogue focused on the nations’ shared commitment to combatting cybercrime and transnational organized crime. The Attorney General and Minister also discussed other areas of law enforcement cooperation between the two countries. The Attorney General welcomed Japan’s recent accession to the United Nations Convention against Transnational Organized Crime (UNTOC).
Photo credit: U.S. Department of Justice