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7 June 2019
Poplar man sentenced in death of infantRead the Press Release
GREAT FALLS—Poplar resident Dennis Red Boy, who admitted causing the death of an infant who would not stop crying, was sentenced on Wednesday to five and one-half years in prison and to two years of supervised release. U.S. Attorney Kurt Alme said.
Red Boy, 28, pleaded guilty in February to involuntary manslaughter in the Aug. 15, 2017 death of a six-month old baby girl in Poplar on the Fort Peck Indian Reservation.
U.S. District Judge Brian M. Morris presided. Judge Morris also ordered $3,500 restitution.
The prosecution said in court records that Red Boy was taking care of children when the infant would not stop crying. He placed the baby on her back, then flipped her over by her foot. He then placed a heavy blanket over her. When he returned about an hour later, the infant was dead. Red Boy initially told law enforcement that the baby had choked on a bottle then admitted that story was incorrect.
Assistant U.S. Attorney Ryan Weldon prosecuted the case, which was investigated by the FBI.
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Pinellas Man Sentenced to More Than Seven Years in Prison in Telemarketing ScamRead the Press Release
Tampa, FL – U.S. District Judge Elizabeth Kovachevich today sentenced Martin Steele (46, St. Petersburg) to seven years and five months in prison for his role in a telemarketing fraud scam. As part of his sentence, the court also entered a money judgment in the amount of $75,000, the proceeds of the wire fraud conspiracy. The court also directed that Steele pay a total of $1,162,142.68 to the scheme’s victims.
According to court records, from 2016 through at least 2018, Steele conspired with others to extract money from victims throughout the United States who owned timeshare properties or other pieces of land they desired to sell. Steele and other conspirators placed telephone calls to these victims; impersonated attorneys, real estate officers, and other professionals; and misled those timeshare owners to believe the conspirators had buyers for the victims’ timeshares and other property. The conspirators further advised the victims that the timeshare and property sales could be consummated if the victims made one or more advanced payments to the conspirators for various fees purportedly associated with the sales, such as closing costs, courier services, title searches, transfer fees, and legal fees. Once the victims agreed to pay the bogus fees, the conspirators directed the victims to send money via wire transfers to the defendant or another conspirator, who then withdrew the cash and divided it among the conspirators according to each conspirator’s role in the fraudulent transaction. The conspirators often repeatedly contacted the victims, fraudulently advised them that additional fees were needed in order to complete the sales of their respective timeshares, and continued to dupe them into sending bogus advanced fees until the victims either ran out of money or became aware of the scam.
Several related defendants have pleaded guilty to charges related to this timeshare scheme. Gary Kinard and Mark Boring were sentenced to 7 years and 11 months in federal prison, and 7 years in federal prison, respectively, for wire fraud conspiracy and aggravated identity theft for their roles in the scheme. David Bell was sentenced to 27 months in prison for money laundering conspiracy relating to his role in the scheme. Troy Cater and Richard Bell have each pleaded guilty to money laundering conspiracy and are awaiting sentencing.
This case was investigated by the Federal Bureau of Investigation, the St. Petersburg Police Department, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Rachel K. Jones.
Perry County Woman Sentenced for Role in Defrauding Disabled VeteranRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Laurie Ehrhart, age 48, of New Bloomfield, Pennsylvania was sentenced yesterday by Chief United States District Court Judge Christopher C. Conner to 6 months home confinement and 2 years probation for helping her former husband defraud a disabled veteran out of $316,360.
According to United States Attorney David J. Freed, Laurie Ehrhart pleaded guilty on December 7, 2018, to one count of Health Care Fraud. Ehrhart’s former husband, Jason Ehrhart, also pleaded guilty to Health Care Fraud and was sentenced on April 15, 2019, by Judge Conner to 19 months’ incarceration. The charges against the couple related to their misappropriation of Michael Ehrhart’s veteran’s disability benefits.
While serving in the U.S. Army in 1985, Michael Ehrhart, a former resident of Perry County, Pennsylvania, was diagnosed with multiple sclerosis. In 1998 Michael Ehrhart began receiving disability benefits from the Department of Veterans Affairs (VA). Michael was eventually hospitalized on a permanent basis at the VA hospital in Lebanon, Pennsylvania in November of 2004 and began receiving disability benefits from the Social Security Administration (SSA) in 2006.
In August of 2006 Michael was deemed by the VA to be incompetent to handle his own financial affairs. As a result, on October 2, 2006, Michael’s brother, Jason Ehrhart, applied to serve as Michael’s VA Fiduciary and Legal Custodian. Under the terms of a Fiduciary Agreement, Jason Ehrhart agreed to use all of Michael’s VA disability benefits exclusively for Michael’s benefit. The agreement warned Jason that the funds were not for his personal use. The Fiduciary Agreement also required Jason Ehrhart to submit an annual accounting to the VA with respect to the amount of money received and spent on Michael’s behalf.
While Jason Ehrhart served as Michael’s VA Fiduciary and Legal Custodian, all of Michael’s VA benefits, plus most of his Social Security disability checks, were deposited into a checking account Jason opened at The Orrstown Bank. Altogether, $476,260 in federal benefits ($422,828 in VA disability, $48,187 in Social Security disability, and $5,244 in VA clothing allowance) were deposited into the account between January 2009 and August 2016.
However, during that same time period $316,360 of the $476,260 was misappropriated by Jason and Laurie Ehrhart and converted to their own use Checks totaling $218,832 ($96,202 payable to Jason and $122,630 payable to Laurie), were drawn against the account. Of the $218,832, $157,742 was deposited into Jason and Laurie Ehrhart’s joint checking account at the Juniata Valley Bank (JVB) and at least $23,496 was converted to cash. Thereafter, the funds in the joint JVB account were employed by Jason and Laurie Ehrhart to pay personal expenses.
Checks totaling $7,174 were also made payable to Jason and Laurie Ehrhart’s two minor children. Jason Ehrhart would instruct the children to take the checks to the bank, cash them, and surrender the cash to him.
Checks totaling $19,890 were also made payable to another couple who were Jason and Laurie Ehrhart’s best friends. Jason Ehrhart regularly treated the couple and their children to dinners out and at least two, all-expense paid vacations to Disney World in Florida. Jason also purchased two automobiles for the family and paid for the wife’s dental work.
To conceal his embezzlements, Jason Ehrhart submitted eight false annual accountings to the VA in which he falsely claimed he spent $402,408 on Michael’s behalf. The itemized expenditures in the annual accountings were grossly inflated. For example, Jason Ehrhart claimed he paid the mortgage on the veteran’s residence ($1,631 per month) plus Michael’s share of the mortgage on his mother’s residence ($881) after she died in May 2011. However, the lenders for both properties obtained default judgments and both properties were eventually foreclosed and sold.
Jason Ehrhart also falsely claimed in the annual accountings that he spent thousands on miscellaneous expenditures for the veteran, including storage unit rentals, vehicle maintenance bills, state and local taxes, life and auto insurance, and credit card bills. However, in 2016 the veteran’s specially equipped wheelchair van, for which Jason Ehrhart claimed he spent approximately $32,395 on maintenance, was found broken down and abandoned along a Perry County roadside. Laurie Ehrhart admitted she helped Jason complete the 8 false annual accountings in her handwriting.
Michael Ehrhart died at the Lebanon VA Hospital on July 30, 2018. As part of their sentences Judge Conner ordered Laurie and Jason Ehrhart to pay $316,360 restitution to Michael’s son, his only known heir.
The Department of Veteran Affairs Office of Inspector General, the Pennsylvania State Police, and the Social Security Administration’s Office of Inspector General investigated the case. Assistant United States Attorney Kim Douglas Daniel prosecuted the case.
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Peever Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Ron Parsons announced that a Peever, South Dakota, man convicted of abusive sexual contact was sentenced on June 3, 2019, by U.S. District Judge Charles B. Kornmann.
David Seaboy, Sr., age 57, was sentenced to 120 months in federal prison, to be followed by 10 years of supervised release. He was ordered to pay $100 to the Federal Crime Victims Fund.
According to court documents, in November 2007, Seaboy did knowingly engage in, and attempt to engage in, sexual contact with a person who had not attained the age of 12. Seaboy acted with an intent to abuse, humiliate, harass, and degrade the child, and to arouse and gratify his sexual desires.
The investigation was conducted by the Federal Bureau of Investigation and the Sisseton-Wahpeton Sioux Tribe’s Law Enforcement. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Seaboy was remanded to the custody of the U.S. Marshals Service.
Orlando Man Sentenced to 15 Months for Conspiring to Make and Use Falsified Document in Passport ApplicationRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Manuel Domingo Santana (41, Orlando) to 15 months in federal prison for conspiracy to make and use a false document.
Santana had pleaded guilty on March 21, 2019.
According to court documents, Santana and his co-defendant, Erika Cordova, conspired to make a fraudulent document in support of a passport application for one of Cordova’s children. Because the child was a minor, Cordova was required to present a notarized form from the child’s father, confirming his consent to the passport application. Instead of obtaining a consent form from the father, Cordova and Santana made the form appear to have been signed by the father. Santana also recruited an unidentified individual to pose as the father before a notary, so that the form could be notarized before Cordova submitted it with her child’s passport application.
Cordova pleaded guilty on March 21, 2019. Her sentencing is scheduled for July 10, 2019.
“The Diplomatic Security Service (DSS) is firmly committed to making sure those who commit fraud in an attempt to circumvent the two-parent consent law regarding the issuance of a United States passport for a minor face the consequences for their criminal actions. Additionally, we are committed to protecting children and denying the risk or opportunity for parental abduction, while protecting the rights of both parents,” said Frederick R. Stolper, Special Agent-in-Charge of the U.S. Department of State’s (DSS) Miami Field Office. “The strong relationship we have with the Department of Homeland Security’s Document and Benefit Fraud Task Force (DBFTF), the U.S. Attorney’s Office in the Middle District of Florida, and other law enforcement agencies around the world is vital towards ensuring the integrity of U.S. travel documents and protecting greater U.S. interests.”
This case was investigated by the U.S. Department of State’s Diplomatic Security Service and the Department of Homeland Security’s Document and Benefit Fraud Task Force (DBFTF). It is being prosecuted by Assistant United States Attorney Emily C. L. Chang.
New York Man Pleads Guilty to Bribing Naval Employee to Allow Him to Make Unauthorized Liquor PurchasesRead the Press Release
A New York resident pleaded guilty today to providing cash bribes to an employee of the U.S. Department of the Navy to make unauthorized liquor purchases at a Navy Exchange (NEX), announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Leo Lamont of the Naval Criminal Investigative Service’s (NCIS) Northeast Field Office.
Edwin D. Fragoso, 45, of Freeport, New York, pleaded guilty to one count of conspiracy before U.S. Magistrate Judge Gary R. Brown of the Eastern District of New York. Sentencing is scheduled for Dec. 9, 2019 before U.S. District Judge Sandra J. Feurstein of the Eastern District of New York.
According to admissions made in connection with his guilty plea, Fragoso agreed with NEX supervisory sales associate Eric J. Jex to arrange repeated large purchases of liquor from the NEX at Mitchel Field in Garden City, New York. Official policies limited access to the NEX’s goods to authorized personnel, including Navy service members, and required NEX employees to confirm purchasers’ identities. Over more than a year, until December 2016, Fragoso paid Jex over $95,000 in cash bribes to make unauthorized purchases of NEX liquor at significant discounts. He ultimately resold the liquor purchased from the NEX for profit.
On Aug. 1, 2017, Jex pleaded guilty to accepting more than $250,000 in cash bribes from Fragoso and two other individuals, Adam Agaev and David Manasherov. Agaev and Manasherov each pleaded guilty to conspiracy on Jan. 7, 2019, and are pending sentencing on Sept. 24, 2019.
The Naval Criminal Investigative Service (NCIS), Alcohol and Tobacco Tax and Trade Bureau (TTB) and New York State Department of Taxation and Finance, Criminal Investigations Division investigated the case. Trial Attorney Jessica C. Harvey is prosecuting the case.
Natchez Man Pleads Guilty under Project EJECT to Receiving a Firearm While Under Felony IndictmentRead the Press Release
Natchez, Miss. – Jarvanti Doss, 22, of Natchez, pled guilty yesterday before U.S. District Judge David C. Bramlette, III to receiving a firearm while under a felony indictment, announced U.S. Attorney Mike Hurst and Dana Nichols, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
On August 25, 2017, Jarvanti Keyon Doss was indicted by an Adams County Grand Jury on felony charges. On March 22, 2019, ATF agents, Adams County deputies, Natchez police officers, and probation agents of the Mississippi Department of Corrections were conducting a "saturation detail" in high-crime areas when Doss was observed by members of the detail removing a pistol from his pants. After a brief foot chase, Doss was apprehended. On April 16, 2019, Doss was charged in a federal indictment with receiving a firearm while under a felony indictment.
Doss will be sentenced by Judge Bramlette on October 1, 2019 and faces a maximum penalty of five years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Muskegon Man Sentenced to over 8 Years in Prison for Straw Purchase of FirearmsRead the Press Release
GRAND RAPIDS, MICHIGAN — Bobby Butch Pollard, age 39, of Muskegon, was sentenced in U.S. District Court to 103 months in prison for manipulating his girlfriend into purchasing four firearms and hundreds of rounds of ammunition for him in late 2017. He could not lawfully acquire or possess firearms or ammunition because he was a convicted felon. The Hon. Janet T. Neff also imposed a term of three years of court supervision to follow Pollard’s release from prison. The sentencing follows a trial that took place in February in which a jury found Pollard guilty of being a felon in possession of firearms and ammunition—the guns and bullets his girlfriend had purchased for him at his direction. His lengthy prior record includes convictions for drug offenses, assault and battery, assault with a dangerous weapon, domestic assault, failures to pay child support and various criminal traffic offenses.
"ATF, in conjunction with our state and local partners, will continue to protect the public by identifying and arresting violent offenders in the community who illegally possess firearms, as well as anyone who knowingly provides firearms to them," said James Deir, Special Agent in Charge of ATF’s Detroit Field Division.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, in conjunction with the Muskegon Police Department. This case was prosecuted by Assistant U.S. Attorneys Jonathan Roth and Clay Stiffler as part of the Department of Justice’s Project Safe Neighborhoods, a nationwide initiative to reduce violent crime. The U.S. Attorney’s Office, county prosecutor’s offices, and federal, state, local, and tribal law enforcement work closely together to identify and prosecute individuals responsible for driving violent crime in our communities in order to make neighborhoods safer for everyone. Individuals with information or concerns about violent crime or firearms offenses should contact local law enforcement. For more information about Project Safe Neighborhoods, visit: https://www.justice.gov/psn.
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Murfreesboro Dentist Sentenced to 33 Months in Federal Prison for Healthcare Fraud SchemeRead the Press Release
NASHVILLE, Tenn. – June 7, 2019 - Richard N. Schott, 51, of Murfreesboro, Tennessee, was sentenced today to 33 months in federal prison for operating a scheme to defraud healthcare benefit programs, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. Chief U.S. District Judge Waverly D. Crenshaw, Jr., also ordered Schott to pay $956,448.00 in restitution.
Schott, a licensed dentist, and his former practice administrator, Kendra Glenn, were charged in November 2018 with conspiracy to commit healthcare fraud. Schott pleaded guilty in November and Glenn, also facing seven counts of healthcare fraud, is scheduled for trial on December 3, 2019.
Schott owned and operated Dental Excellence, a dental practice with three locations in Murfreesboro and one location in Lebanon, Tennessee. Between November 2013 and January 2018, Schott caused the submission of false and fraudulent claims to healthcare benefit programs, including Delta Dental, Cigna, TennCare and DentaQuest, TennCare’s dental benefits program administrator. The fraudulent claims included billing for dental work that had not been completed or performed at all; falsifying dates of service to appear to comply with benefit programs’ timeframe and preauthorization requirements; falsifying claims to appear that services had been rendered by a benefits program credentialed dentist; falsifying supporting documents and adding false narratives to support the upcoding of claims; and others, including continuing to submit false claims after being advised by insurance companies that audits had determined a pattern of false claims and that the Tennessee Bureau of Investigation was conducting a criminal investigation into the company’s billing practices.
Schott took steps to conceal the fraud by discouraging employees from questioning billing practices; instructing employees to lie if questioned by insurance companies; and disciplining and even firing employees who questioned the legality of the billing practices. Schott used the proceeds from the fraudulent scheme for his own personal use and paid bonuses to Glenn based on the amount of money collected from the fraudulent scheme.
As a result of Schott’s fraudulent scheme, many patients were forced to wait months and even years in pain, to have necessary dental work completed by other dentists, while their insurance companies resolved the false claims.
As noted above, Schott was ordered to pay restitution to TennCare, Tennessee’s Medicaid program, which is funded by state and federal tax dollars and provides medical and dental care to certain minors and indigent individuals.
This case was investigated by the FBI and the Tennessee Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys Kathryn W. Booth, Sarah K. Bogni and Byron Jones.
Kendra Glenn is presumed innocent until proven guilty in a court of law.
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Mission Man Indicted for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Assault of an Intimate Partner by Strangulation and Suffocation, Assault With a Dangerous Weapon, and Assaulting, Resisting, and Impeding a Federal Officer.
Logan James Fast Horse, age 21, was indicted on May 14, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 29, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on April 1, 2019, Fast Horse assaulted his intimate partner and dating partner, by strangling and suffocating her, and on that same date, Fast Horse kicked her with shod feet with the intent to do bodily harm. The Indictment further alleges that on April 5, 2019, Fast Horse did forcibly assault, oppose, impede, intimidate, and interfere with a law enforcement officer who was employed by the Rosebud Sioux Tribe Law Enforcement Services, and that such conduct involved the use of a dangerous weapon.
The charges are merely accusations and Fast Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Fast Horse was released on bond pending trial. A trial date has not been set.
Mexican Citizen Pleads Guilty in Federal Court to Drug Distribution and Firearms Charges and Transporting Women in Interstate Commerce for Purposes of ProstitutionRead the Press Release
Matthew Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on June 6, 2019, Jose Facio-Santos (age 39), a Mexican citizen, pleaded guilty to three felony counts related to drug distribution, illegal firearm possession, and the transportation of a female in interstate commerce for purposes of prostitution. Specifically, this includes one count of distribution of heroin, in violation of Title 21, United States Code, §§ 841(a)(1) and (b)(1)(C); one count of possession of a firearm by an illegal alien, in violation of Title 18, United States Code, § 922(g)(5); and one count of transporting and aiding and abetting the transportation of an individual in interstate commerce with the purpose being for the individual to engage in prostitution, in violation of Title 18, United States Code, §§ 2421 and 2.
According to admissions made in connection with his plea, Facio-Santos led a prostitution brothel from his Milwaukee residence from approximately 2013 through October 2018. On a weekly basis, he traveled to various pre-determined meet locations to pick up a different woman, whom he then prostituted at his residence, expecting each to perform a certain number of sex acts during that week in which she stayed at his residence. Facio-Santos collected payment for the woman's services and promoted his prostitution brothel through the use of business cards and mass text messages each week broadcasting the woman he transported back to his house. Facio-Santos’ Milwaukee brothel was connected to a network of out-of-state brothels.
In addition to the operation of his Milwaukee brothel, Facio-Santos was also involved in trafficking cocaine, heroin, and firearms, mostly from his Milwaukee residence. During the investigation, Facio-Santos sold two firearms, specifically, a Romarm WASR rifle with a 30-round magazine, and a Norinco SKS rifle, also containing a high-capacity magazine, to an individual acting under the direction and control of law enforcement. Furthermore, as part of the investigation, law enforcement executed a search warrant at Facio-Santos’ residence, at which time they located, among other items, a 9 mm Smith and Wesson, semi-automatic pistol, which had previously been reported stolen.
Facio-Santos faces a maximum term of imprisonment of up to 20 years for his drug trafficking, up to 10 years for being an illegal alien in possession of a firearm, and up to 10 years for transporting women for purposes of prostitution. He also faces up to life on supervised release and deportation from the United States. His sentencing hearing is set for December 17, 2019 at 9:30 a.m. before U.S. District Judge Pamela Pepper.
The case was investigated by Milwaukee Police Department, the United States Immigration and Customs Enforcement - Homeland Security Investigations, the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant U.S. Attorneys Karine Moreno-Taxman and Elizabeth M. Monfils.
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McLaughlin Man Charged with Third Degree Burglary and Aiding and Abetting, Co-Conspirator SentencedRead the Press Release
United States Attorney Ron Parsons announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for third degree burglary and aiding and abetting.
Lyle Daniel Mousseau, age 42, was indicted on February 13, 2019. He appeared before U.S. Magistrate Judge William Gerdes on June 4, 2019, and pled not guilty to the Indictment.
According to the Indictment, on or about July 11, 2018, Lyle Daniel Mousseau and Alexander Guy Jones unlawfully entered and remained in an unoccupied structure, that is, NAPA Auto and Truck of McLaughlin, with intent to commit the crime of larceny.
The charges are merely accusations and Mousseau is presumed innocent until and unless proven guilty.
Alexander Guy Jones, age 26, was sentenced on June 4, 2019, by U.S. District Judge Charles B. Kornmann to 11 months of imprisonment, followed by 3 years of supervised release, and ordered to pay $100 to the Federal Crime Victims Fund for the same burglary. Jones was indicted on October 16, 2018.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting both cases.
Mousseau was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Maryland Auto Parts and Scrap Metal Dealers Convicted of Tax FraudRead the Press Release
Greenbelt, Maryland – Robert Mason Underwood, Sr., age 72, and his wife, Deborah Jean Underwood, age 63, both of Clinton Maryland, were convicted by a federal jury today of one count of conspiracy to defraud the Internal Revenue Service (IRS) and four counts of filing false income tax returns.
The conviction was announced by United States Attorney for the District of Robert K. Hur; Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division; and Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“When criminals cheat the IRS, they rob all of us as taxpayers,” said U.S. Attorney Robert K. Hur. “Prosecutions like this demonstrate that we will not tolerate those who attempt to cheat the system and will hopefully deter others from stealing taxpayer funds.”
“The jury’s guilty verdicts embody the formidable commitment of the Tax Division, along with its partners in the United States Attorney’s Office and the IRS, to prosecute business owners, who cheat the tax system in violation of our criminal laws and in doing so also gain an unfair advantage over other small business owners,” stated Principal Deputy Assistant Attorney General Zuckerman.
“Today’s verdict confirms that choosing to evade the payment of taxes, causing hardworking taxpayers to bear the brunt, is an action that cannot be tolerated,” said IRS-CI Special Agent in Charge Kelly Jackson. “The conviction of the Underwood’s solidifies this agreement with the American public that everyone must pay their fair share.”
According to court documents and evidence presented in court at their seven-day trial, the Underwoods operated a used automobile parts and scrap metal business in Clinton under the names “B Underwood’s Used Auto Parts” and “B Underwood Used Auto Parts, LLC.” The business purchased used and salvage cars, stripped the cars for parts to resell, and sold the remaining scrap metal to a Baltimore-based scrap yard.
The Underwoods requested to be paid in cash for their scrap-metal sales and conspired to conceal from the IRS their subsequent receipt of substantial amounts of cash. The Underwoods filed a false amended individual income tax return for 2010 and false individual income tax returns for 2011 and 2012 with the IRS. The false tax returns did not include the full gross receipts from the sales. The Underwoods also filed a false 2012 partnership tax return for their business that did not report all gross receipts of the business.
The Underwoods each face a maximum sentence of five years in prison for the conspiracy count and three years in prison for each of four counts of filing a false tax return. U.S. District Judge Theodore D. Chuang has scheduled sentencing for September 30, 2019, at 2:00 p.m.
U.S. Attorney Hur and Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney David I. Salem and Trial Attorney Michael C. Vasiliadis of the Justice Department’s Tax Division, who are prosecuting the case.
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Maryland Auto Parts and Scrap Metal Dealers Convicted of Tax FraudRead the Press Release
A married Clinton couple were convicted by a federal jury today of one count of conspiracy to defraud the Internal Revenue Service (IRS) and four counts of filing false income tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert K. Hur for the District of Maryland.
“The jury’s guilty verdicts embody the formidable commitment of the Tax Division, along with its partners in the United States Attorney’s Office and the IRS, to prosecute business owners, who cheat the tax system in violation of our criminal laws and in doing so also gain an unfair advantage over other small business owners,” stated Principal Deputy Assistant Attorney General Zuckerman.
“When criminals cheat the IRS, they rob all of us as taxpayers,” said U.S. Attorney Robert K. Hur. “Prosecutions like this demonstrate that we will not tolerate those who attempt to cheat the system and will hopefully deter others from stealing taxpayer funds.”
“Choosing not to pay your taxes and causing hardworking taxpayers to bear the brunt cannot be tolerated and today’s verdict reinforces that principle,” said Don Fort, Chief, IRS Criminal Investigation. “The conviction of the Underwoods validates the most basic principle of our agreement with the American public that everyone must pay their fair share and we will hold those who cheat the system accountable.”
According to court documents and evidence presented in court, the Underwoods operated a used automobile parts and scrap metal business in Clinton under the names “B Underwood’s Used Auto Parts” and “B Underwood Used Auto Parts LLC.” The business purchased used and salvage cars, stripped the cars for parts to resell, and sold the remaining scrap metal to a Baltimore-based scrap yard.
The Underwoods requested to be paid in cash for their scrap-metal sales and conspired to conceal from the IRS their subsequent receipt of substantial amounts of cash. The Underwoods filed a false amended individual income tax return for 2010 and false individual income tax returns for 2011 and 2012 with the IRS. The false tax returns did not include the full gross receipts from the sales. The Underwoods also filed a false 2012 partnership tax return for their business that did not report all gross receipts of the business.
The Underwoods each face a maximum sentence of five years in prison for the conspiracy count and three years in prison for each count of filing a false tax return. The Underwoods also face a term of supervised release and monetary penalties, including restitution.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hur thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney David I. Salem and Trial Attorney Michael C. Vasiliadis of the Justice Department’s Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Man Sentenced for Leading Methamphetamine ConspiracyRead the Press Release
ALEXANDRIA, Va. – A New York man was sentenced today to 14 years in prison and ordered to forfeit $500,000 for his role in a conspiracy to distribute methamphetamine.
According to court records and evidence presented at trial, Kendesia Juinize May, 40, was a leader of a sprawling, nationwide methamphetamine distribution network with ties to California, New York, Washington, DC, and the Eastern District of Virginia. The network utilized pirated and fraudulent Federal Express accounts to ship pound quantities of California-sourced methamphetamine throughout the United States.
In late 2017, May negotiated to buy into the conspiracy and assume distribution responsibilities to its Washington, DC area customers, many of whom were themselves distributors of methamphetamine. According to evidence presented at trial, May “took over” methamphetamine distribution in the northern Virginia and Washington, DC area and aspired to become “the biggest drug dealer on the East Coast.”
The government presented evidence showing that the conspiracy sent nearly 400 FedEx packages containing either pound quantities of methamphetamine or thousands of dollars in proceeds of drug sales. On May 25, 2018, officers of the Maryland Transportation Authority Police stopped May while driving his Mercedez Benz vehicle, and a search of the vehicle led to the discovery of more than five pounds of pure methamphetamine, along with FedEx packaging, digital scales, and other drug paraphernalia.
This case was prosecuted as part of Organized Crime Drug Enforcement Task Force (OCDETF) Operation Four Horsemen. 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.
This investigation was led by the DEA Washington Field Office, with significant assistance from the Arlington County Police Department, U.S. Postal Inspector Service, the DEA Baltimore District Office, and the Maryland Transportation Authority Police.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, M. Jay Farr, Arlington County Chief of Police, and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys David A. Peters and Katherine E. Rumbaugh prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-7.
Los Angeles Doctor and Patient Recruiter Found Guilty in $33 Million Medicare Fraud SchemeRead the Press Release
A federal jury found a Los Angeles doctor and patient recruiter guilty today for their roles in a $33 million Medicare fraud scheme in which Medicare was billed for clinic, home health, hospice services and durable medical equipment that patients did not need or did not receive.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicola T. Hanna of the Central District of California, Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Field Office and Special Agent in Charge Christian J. Schrank of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Los Angeles Regional Office and Acting Special Agent in Charge Ryan L. Korner of the IRS Criminal Investigations of the Los Angeles Field Office made the announcement.
Following a seven-day trial, Robert Glazer, M.D., 73, of Los Angeles, California, the owner and operator of the Glazer Clinic located in Los Angeles, California, was found guilty of one count of conspiracy to commit health care fraud and 12 counts of health care fraud. Co-defendant Marina Merino, 62, of Los Angeles, California, a marketer who recruited patients in exchange for kickback payments, was convicted of one count of conspiracy to commit health care fraud and eight counts of health care fraud. Glazer and Merino are expected to be sentenced on Sept. 9, 2019, by U.S. District Judge Otis D. Wright II of the Central District of California, who presided over the trial.
Glazer and Merino were charged in a June 2015 superseding indictment, along with Angela Avetisyan, the officer manager of Glazer Clinic and co-owner of Fifth Avenue Home Health located in Los Angeles, California (Fifth Avenue), and Ashot Minasyan, co-owner of Fifth Avenue.
According to the evidence presented at trial, Merino and other marketers received payments from Avetisyan and Minasyan to recruit Medicare beneficiaries to the Glazer Clinic. Thereafter, Glazer billed Medicare for office services and tests that patients did not need or did not receive. Glazer also referred Medicare patients for a variety of services, including home health and hospice services, as well as ordered durable medical equipment that patients did not need or did not receive. Based on referrals from Glazer, Avetisyan and Minasyan billed Medicare for home health services that were not rendered or were not medically necessary through their company, Fifth Avenue. Avetisyan, who worked as an office manager at the Glazer Clinic, also sold Glazer’s referrals to other home health and durable medical equipment agencies. Together, the defendants and their co-conspirators submitted and caused to be submitted claims of approximately $33 million, of which Medicare paid approximately $22 million, the evidence showed.
Avetisyan and Minasyan pleaded guilty in October 2018, and are awaiting sentencing.
The case was investigated by the FBI, HHS-OIG, the IRS, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The case is being prosecuted by Trial Attorneys Claire Yan, Robyn Pullio, and Emily Culbertson of the Fraud Section.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Long Island Man Who Worked at Melville-Based Boiler Room Sentenced to Two Years’ Imprisonment for His Role in $147 Million Stock Manipulation SchemeRead the Press Release
Earlier today, in federal court in Central Islip, Emin L. Cohen, a cold-caller and account executive at My Street Research and its predecessors located in Melville, New York (the “boiler room”), was sentenced by United States District Judge Joanna Seybert to two years in prison and ordered to pay $86,168 in forfeiture. The amount of restitution will be determined by the court at a later date. Cohen pleaded guilty in June 2018 to conspiracy to commit securities fraud in connection with a multi-defendant, $147 million scheme to defraud investors in publicly traded companies.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Cohen played key roles in the boiler room, luring the victims, many of them elderly and vulnerable, into the fraudulent scheme with lies and subjecting them to high-pressure tactics to seal the deals,” stated United States Attorney Donoghue. “With today’s sentence, Cohen has been held accountable for taking advantage of victims of his telemarketing con job, designed solely to enrich himself and his co-conspirators.”
Between January 2014 and July 2017, Cohen and 15 co-defendants participated in a “pump and dump” stock fraud scheme that defrauded investors in publicly traded companies (the “manipulated companies”). As part of the scheme, the defendants artificially inflated the price and trading volume of stock of the manipulated companies, and made material misrepresentations and omissions in their communications with the victim investors, concerning the advisability of purchasing the stock and its potential profitability. The defendants, who controlled much of the stock of the manipulated companies, profited handsomely, while the victim investors lost millions of dollars when the price stock plummeted. Taped to the wall of the boiler room was a sign that read, “WE’LL POUND THE PHONE AND WITH A LITTLE BIT OF LUCK, WE’LL MAKE A TON OF MONEY AND WON’T GIVE A F---.” Ten of Cohen’s co-defendants have pleaded guilty and are awaiting sentencing. Five other co-defendants are scheduled for trial.
The government’s case is being prosecuted by Assistant United States Attorneys Whitman G.S. Knapp, Alicyn L. Cooley and Patrick T. Hein. Assistant United States Attorney Tanisha R. Payne of the Office’s Civil Division is handling the forfeiture aspect of the case.
The Defendant:
EMIN L. COHEN (also known as “Ian Grant”)
Age: 35
Coram, New YorkE.D.N.Y. Docket No. 17-CR-372-10 (JS)
Local Builder and Financial Advisor Head to PrisonRead the Press Release
St. Louis, MO - Paul Creager, 40, of St Louis County, and William Glaser, 61, of Ellisville, were sentenced to 78 months and 36 months imprisonment, respectively. Creager pleaded guilty to two counts of wire fraud on December 21, 2017 and appeared before U.S. District Court Ronnie White for sentencing. Glaser pleaded guilty to three counts of wire fraud on February 26, 2019 and appeared before U.S. District Court John Ross for sentencing.
According to court records, Creager solicited over $4 million from multiple investors in exchange for equity interests in his construction firm. Creager admitted that during his negotiations with the victims, he presented false financial records which omitted a massive debt owed by his company to a hard money lender which lender possessed a secured interest in virtually all of Creager’s business and personal assets. Soon after receiving victims’ investments, Creager’s business was not able to meet its financial obligations and stopped operating. By mid-2017, Creager’s primary lender foreclosed on virtually all of his assets rendering the investors’ equity stakes in his business worthless. While Creager’s business was failing and his subcontractors and vendors went unpaid, Creager maintained a luxurious lifestyle which included homes in Wildwood and the Lake of the Ozarks as well as a host of vehicles including a Bentley automobile and a 52-foot yacht.
One of Creager’s associates, William Glaser, admitted to misleading and defrauding clients by cashing out money from their retirement portfolios to fund investments with Creager.
"Paul Creager and Bill Glaser defrauded friends and business associates, some of whom were elderly and vulnerable, of hard-earned savings and financial security," said FBI-SL SAC Richard Quinn. "The FBI will continue to hold accountable those who defraud the public for their personal enrichment."
The St. Louis division of the FBI investigated this case. Gwen Carroll handled the case for the U.S. Attorney’s office.
Lake Geneva Resident Pleads Guilty to Manufacturing and Distributing Anabolic SteroidsRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that on June 5, 2019, Russell Spalding of Lake Geneva, Wisconsin, pleaded guilty to three counts relating to manufacturing and distributing anabolic steroids. This includes one count of conspiracy to distribute anabolic steroids in violation of Title 21, United States Code, Section 846, one count of possession with intent to distribute anabolic steroids in violation of Title 21, United States Code, Section 841, and one count of maintaining a drug-involved premises, in violation of Title 21, United States Code, 856. Spalding’s wife, Kathryn Spalding, a codefendant in the case, pleaded guilty to the conspiracy to distribute anabolic steroids on February 14, 2019.
According to admissions made in connection with his plea, Spalding (39 years old) led an anabolic steroid manufacturing and distribution operation from approximately October 2014 through October 8, 2015. He called his business “Cerastes Pharmaceuticals.” He imported raw and processed anabolic steroids from the United Kingdom and China and sold the steroids to others around the United States through Facebook groups. He had several people help him import, process, sell, and ship the steroids. As part of the investigation, law enforcement agents executed a search warrant at an apartment in Lake Geneva, which served as Spalding’s steroid laboratory. There, the agents seized thousands of vials, beakers, liquid filling machines, measuring pumps, more than 12,000 capsules containing anabolic steroids, approximately 8,000 milliliters of liquid containing anabolic steroids, and several kilograms of raw steroid powder.
Spalding faces a maximum term of up to 40 years in prison on all of the counts, and up to life on supervised release. His sentencing hearing is set for November 26, 2019 at 1:30 p.m.. before U.S. District Judge Pamela Pepper.
This case was investigated by the Drug Enforcement Administration and the Walworth County Sherriff’s Office. The case is being prosecuted by Assistant United States Attorney Benjamin Proctor.
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Kenton, Tennessee Man Sentenced to 200 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
Jackson, TN – Kenneth Garrett, 62, has been sentenced to 200 months imprisonment on federal charges of conspiracy to distribute 50 grams or more of actual methamphetamine. U.S. Attorney D. Michael Dunavant announced the sentence today.
This is the latest sentencing in a case involving multiple defendants including Rolando Lopez, Saul Vega Flores, Virginia Torres, Ronald Lynn Parham, Tammy Ranger, Marcus Jones, and Xavier Demetrius James on charges of conspiracy to distribute methamphetamine.
According to information presented in court, the Drug Enforcement Administration (DEA) began an investigation into Rolando Lopez and his drug trafficking organization. Agents discovered that Lopez and other co-conspirators were trafficking in methamphetamine, heroin, marijuana and other illegal substances from Mexico to Tennessee. Investigators used "wiretaps" along with surveillance, confidential sources, traffic stops, and search warrants to investigate this organization.
In April, 2017, agents received information from a confidential informant regarding a home in Davidson County, Tennessee, where Lopez and his brother, were conducting drug related activity. A search warrant was executed at the residence where over $500,000 in cash, a money counter, and a vacuum sealer were recovered. In December 2017, investigators through wiretap interceptions and information received from confidential informants learned that Lopez was arranging a shipment of methamphetamine from Mexico to Tennessee.
The shipment was being transported by other co-conspirators in a 2004 Lincoln Navigator to the residence of a co-conspirator in theWestern District of Tennessee, where the shipment was to be converted to powder form for distribution. Kenneth Garrett met with other co-conspirators transporting the liquid methamphetamine at the Days Inn in
West Memphis, Arkansas. Once the defendants began to transport the liquid methamphetamine into the Western District of Tennessee, investigators arranged for the Tennessee Highway Patrol to stop the Lincoln Navigator on Highway 51 in Obion County, Tennessee. During the search of the vehicle, agents discovered a large quantity of methamphetamine located in a hidden compartment. A DEA forensic laboratory examination revealed that the defendant and other co-conspirators were transporting 44.85 kilograms of 98% pure ice.
Garrett allowed other co-conspirators to use his garage to store methamphetamine. Garrett was paid by the organization between $2,000 to $8,000 per methamphetamine load. At the garage, Garrett assisted in loading methamphetamine in gas tanks and the vehicle batteries for transportation.
Kenneth Garrett was attributed with a total of 97.17 kilograms of actual methamphetamine.
U.S. Attorney D. Michael Dunavant said: "Use and trafficking of methamphetamine continues to destroy lives, families, and communities across West Tennessee. The joint cooperation between federal, state, and local law enforcement in this case demonstrates our ability and resolve to dismantle drug trafficking organizations, including those that distribute narcotics from locations outside the country. The significant sentence in this case sends a clear message to those drug dealers who distribute poison in West Tennessee: You cannot prey upon our citizens for your selfish personal gain with impunity; there will be a reckoning."
On June 7, 2019, U.S. District Court Judge S. Thomas Anderson sentenced Garrett to 200 months in federal prison followed by 5 years supervised release.
This case was investigated by the Drug Enforcement Administration (DEA), Tennessee Bureau of Investigation, 23rd Judicial Drug Task Force, Metro Nashville Police Department, Perry County, Tennessee Highway Patrol, Lawrenceburg Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Obion County Sheriff’s Office.
Assistant U.S. Attorney Jerry Kitchen prosecuted this case on behalf of the government.
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Jacksonville Pimp and Heroin Dealer Pleads Guilty to Three Counts of Forcible Sex TraffickingRead the Press Release
Jacksonville, Florida – Richard Anthony Moffett, a/k/a “Mook” (31, Jacksonville) today pleaded guilty to three counts of sex trafficking by force, fraud, and coercion. Moffett faces a minimum sentence of 15 years, up to life, in federal prison. A sentencing date has not yet been set.
During the change of plea hearing, Moffett admitted that, in the middle of 2016, he relocated to Jacksonville from Ohio and began residing in various Jacksonville hotels. Sometime in December 2016, Moffett began selling heroin to D.D., one of his victims. D.D. began working for Moffett, providing commercial sex to others, and gave all of the money she made to Moffett. Moffett exploited D.D.’s heroin addiction to coerce her into engaging in commercial sex acts. This continued until around February 2017.
Sometime in February 2017, Moffett began selling heroin to a second victim (S.B.). Moffett invited S.B. and another woman to travel with him to Akron, Ohio, for the stated purpose of meeting Moffett’s two newborn daughters. S.B. and the other woman, who were heroin addicts, agreed to go with Moffett. Once they reached Akron, Moffett obtained hotel rooms and then informed the women that they would need to begin engaging in commercial sex in order to make enough money to travel back to Florida. Both S.B. and the other woman were posted on Backpage.com, and both engaged in commercial sex “dates” while in Ohio. After a few weeks, Moffett transported S.B. and the other woman back to Jacksonville, where he continued to advertise S.B. for commercial sex, taking all of the proceeds, and beating her as punishment for behavior that he did not like. On one occasion, S.B. told Moffett she wanted to leave, and Moffett prepared a bill for all of S.B.’s purported expenses, totaling approximately $3,000.
In mid-April, another victim, S.A., who had been purchasing heroin from Moffett, became homeless and asked Moffett for help. Moffett offered S.A. a place to stay, and the next day, informed S.A. that she would need to begin paying her way. S.A. was posted on Backpage.com, and when a commercial sex “date” was arranged, Moffett provided S.A. with a set of rules on handling money from the “John” and the detection of law enforcement. S.A. engaged in multiple commercial sex dates while under Moffett’s control.
In April 2017, S.A. and another woman were arrested for prostitution by the Jacksonville Sheriff’s Office (JSO). Moffett approached S.A. as she was being arrested, and told a JSO detective that he was not her pimp, but was just “guiding” her. Moffett was waiting outside the jail for S.A. the next day when she was released. In May 2017, S.A. was arrested a second time by JSO, and told an undercover detective that Moffett would come looking for her. During this time, S.B. was able to escape from Moffett.
This case was investigated by the Jacksonville Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the State Attorney’s Office for Florida’s Fourth Judicial Circuit. It is being prosecuted by Assistant United States Attorney Laura Cofer Taylor and Special Assistant United States Attorney Erin Wolfson.
Inmate Charged with Assault and Possession of ContrabandRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Turhan Jessamy, age 30, an inmate at the United States Penitentiary Canaan (USP Canaan), was indicted by a federal grand jury on June 4, 2019, for assault and possession of a weapon.
According to United States Attorney David J. Freed, the indictment alleges that on July 25, 2018, Jessamy assaulted another inmate with a sharpened piece of metal and plastic commonly referred to as a “shank.”
The investigation was conducted by agents of the Federal Bureau of Investigation and officers at USP Canaan. Assistant United States Attorney Alisan V. Martin is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for assault with a dangerous weapon is 10 years of imprisonment, 3 years of supervised release, and a fine of $250,000. The maximum penalty for possession of contraband is 5 years of imprisonment, 3 years of supervised release, and a fine of $250,000. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on June 6 was:
Terry Lynn Braine, 54, of Ashland, on charges of assault resulting in serious bodily injury. If convicted of the most serious crime, Braine faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Braine was detained. The case was investigated by the Bureau of Indian Affairs. Pacer case reference. 19-64.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Hudson County Man Arrested for Possession with Intent to Distribute Heroin and CocaineRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was arrested today and charged with possession with intent to distribute heroin and cocaine, U.S. Attorney Craig Carpenito announced.
Hason Armfield, 41, of Jersey City, New Jersey, is charged by complaint with one count of possession with intent to distribute 100 grams or more of a mixture and substance containing a detectable amount of heroin and one count of possession with intent to distribute a mixture and substance containing a detectable amount of cocaine. He appeared today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was detained.
According to the documents filed in this case and statements made in court:
An authorized search of Armfield’s residence revealed more than 100 grams of heroin, approximately 200 grams of cocaine, drug paraphernalia, and U.S. currency.
The possession with intent to distribute 100 grams or more of heroin has a minimum sentence of five years in prison, a maximum sentence of 40 years in prison, and a $5 million fine. The possession with intent to distribute cocaine has a maximum sentence of 20 years in prison and a $1 million fine.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, New Jersey Division; and members of the Jersey City Police Department, under the direction of Chief of Police Michael Kelly, with the investigation leading to the charges.
This investigation was part of the Jersey City Violent Crime Initiative (VCI), where the U.S. Attorney’s Office has partnered with state, federal, county and local law enforcement to investigate crime in Jersey City.
The government is represented by Assistant U.S. Attorney Tracey Agnew of the U.S. Attorney’s Office’s Violent Crimes Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Kathleen M. Theurer Esq., Jersey City
Ghanaian National Sentenced to 40 Months Time Served for Refusing to Depart the United StatesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on June 5, 2019, United States District Court Judge James M. Munley sentenced Patrick Owusu, age 42, a citizen of Ghana, to a time served sentence of approximately 40 months, for hindering his removal from the United States.
According to United States Attorney David J. Freed, in 2012, an Immigration Judge ordered Owusu to return to his home country of Ghana after he was convicted of several serious criminal offenses while residing in the United States. On March 31, 2014 and May 28, 2014, immigration officials attempted to remove Owusu from the United States, but he resisted and refused to board the plane.
Owusu has remained in custody since being charged in December 2015. He is to be deported back to Ghana following this sentence.
The case was investigated by officials from Immigration and Customs Enforcement. The case was prosecuted by Assistant U.S. Attorney Phillip J. Caraballo.
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Fort Hall Man Sentenced to 25 Years in Prison for Second Degree MurderRead the Press Release
POCATELLO – Colin Reese Diggie, 36, of Fort Hall, Idaho, was sentenced yesterday in U.S. District Court to 25 years in prison, for second degree murder, U.S. Attorney Bart M. Davis announced. Chief U.S. District Court Judge David C. Nye also sentenced Diggie to pay $7,725 in restitution and ordered him to serve five years of supervised release after he is released from prison. Diggie pleaded guilty on January 16, 2019.
According to court records, on the evening of January 10, 2017, at around 6:30 or 7:00 p.m., Diggie returned with his girlfriend, the victim, to her home in Fort Hall. At some point after returning to his girlfriend’s home, Diggie stabbed and killed her.
At approximately 10:30 p.m., the girlfriend’s neighbors heard a knock on their door. Upon opening their door, they saw Diggie covered in blood, holding his hands, with a look of shock. He said something unintelligible about someone having killed his girlfriend and pointed next door to the girlfriend’s house. The neighbors called 911 and officers were dispatched to that location.
Fort Hall Police Department officers initially responded to the girlfriend’s residence. Agents from the Federal Bureau of Investigation (FBI) arrived later. At the house, they found the girlfriend’s body. Her body was eventually transferred to the Ada County Coroner’s Office for an autopsy. A forensic pathologist performed an autopsy and confirmed the cause of death was a result of the multiple stab wounds.
DNA testing conducted at the FBI Laboratory confirmed that multiple items with the girlfriend’s blood on them taken from the crime scene also had the defendant’s DNA present. Additionally, the FBI Lab also confirmed that the defendant’s bloody fingerprint was found at the crime scene.
On December 12, 2017, a federal grand jury sitting in Pocatello returned an indictment charging Diggie with second degree murder for killing his girlfriend.
This case was investigated by the FBI and the Fort Hall Police Department.
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Former Lawyer Pleads Guilty to $4 Million Wire Fraud Where Clients Were Conned via Forged Judges’ Signatures and Fake Phone CallsRead the Press Release
LOS ANGELES – A former California attorney has pleaded guilty to one felony count of wire fraud for falsely representing to his clients that he obtained favorable legal resolutions for them, and then perpetuating the scheme by delivering clients fraudulent documents, some with the forged signatures of judges, and by making disguised telephone calls to them.
Shant Ohanian, 36, of Pasadena, entered his plea on Thursday before United States District Judge John A. Kronstadt, who scheduled a September 12 sentencing hearing. Ohanian faces a statutory maximum sentence of 20 years in federal prison.
According to his plea agreement, Ohanian was a licensed California lawyer from January 2012 until he was disbarred in December 2017. Beginning in May 2012, Ohanian and his co-conspirator engaged in a scheme to defraud Ohanian’s clients by claiming he obtained favorable legal resolutions for them, when in fact the favorable resolutions had never been obtained, and, in many cases, Ohanian had never initiated a legal action, court papers state. In some cases, Ohanian’s deception caused his victim clients to entirely lose their opportunity to obtain significant financial or legal remedies as a result of wrongs suffered by them, according to court documents.
Ohanian admitted in his plea agreement to defrauding multiple victims, including one victim who hired Ohanian in July 2013 to assist in the recovery of a $500,000 deposit related to a failed commercial real estate transaction for an Ontario shopping center. During the course of that litigation, Ohanian falsely informed the victim that the victim had prevailed in the case and would receive $1.2 million in damages plus penalties, the plea agreement states.
In February 2016, Ohanian presented the victim with a counterfeit check for $1,925,477, which a bank later rejected, court papers state. Ohanian denied the check was counterfeit and in March 2016 he presented the victim with a check for $7,244,211, which also was rejected as counterfeit. Ohanian also falsely informed the victim that he was representing the victim in a parallel bankruptcy proceeding involving the Ontario shopping center, and he provided the victim phony bankruptcy court pleadings, including orders that contained the forged signature of a United States bankruptcy judge, according to court documents.
Ohanian also admitted to making multiple spoofed telephone calls to the victim in which he claimed to be either bank officials or government officials. Ohanian also falsely informed the victim that he would acquire the Ontario shopping center at a discounted price in lieu of a cash settlement, and that the victim needed to make payments for back taxes and overdue mortgage payments in order to acquire the property, and to make “unpaid court fees” to Ohanian even though no such fees were owed, court documents state. Between March 2016 and September 2017, the victim paid Ohanian $2,839,875 based on Ohanian’s false representations that the money would be used to acquire the shopping center, according to court documents.
Ohanian admitted to victimizing other clients, including a woman who suffered serious injuries in a fall at South Coast Plaza mall in Orange County, and for whom the statute of limitations had expired in the case before she realized Ohanian had defrauded her. Ohanian admitted to sending the victim a phony settlement agreement from the mall and, after she threatened to report him to the State Bar of California, a check for $25,000 that turned out to have been cancelled. He also falsely represented to clients seeking immigration relief that he had obtained important legal resolutions related to their ability to live and work in the U.S.
Ohanian’s victims suffered actual losses of more than $4 million.
Ohanian’s wife, Silva Sevlian Ohanian, has been charged with one count of wire fraud in a related case. She has pleaded not guilty to the charge and is currently scheduled to go to trial on July 16.
This case was investigated by U.S. Immigration and Customs Enforcement Office of Professional Responsibility and the California State Bar.
This matter is being prosecuted by Aron Ketchel of the Public Corruption and Civil Rights Section.
Florida Man Sentenced for Sweepstakes Scheme Targeting Elderly Missouri ResidentRead the Press Release
St. Louis, MO – Fernando Reyes, 38, a resident of Florida, was sentenced today to 12 months and a day in prison for conspiracy and mail fraud. He appeared in federal court this morning before U.S. District Judge Catherine Perry.
According to court documents, beginning in April 2016, a Missouri resident over the age of 80 began receiving telephone calls from unknown individuals that he had won large sums of money through a sweepstakes. In order to secure his winnings, the Missouri resident was advised to mail various amounts of money to an individual in New Hampshire and Reyes in Florida. The callers identified Reyes as a federal attorney. That representation was false as Reyes was not, and had never been, affiliated with any federal agency or department.
Reyes acted as a money mule by receiving funds from victims of the lottery scheme and forwarding them to his co-conspirators in Costa Rica. Although he received a fraction of the total amount defrauded, his role was essential because his participation served to obscure the Costa Rican organizers from ordinary view. In addition, the use of his United States address and financial institution based in the United States provided a level of comfort for the victims that lulled them into a sense of security.
Reyes received four checks totaling $53,000 from the Missouri resident and deposited them into his personal financial accounts. After the deposits, Reyes electronically transmitted a portion of the funds to an individual in Costa Rica and kept the remaining funds for his personal use.
Reyes also admitted engaging in similar conduct with a resident of the Northern District of Alabama and received $45,000 from that elderly individual.
This case was investigated by the United States Postal Inspection Service. Assistant U.S. Attorney Tracy Berry is handling the case for the U.S. Attorney’s Office as part of the Department of Justice’s ongoing effort to combat elder fraud nationwide. Elder fraud and other fraud complaints may be filed with the FTC at https://reportfraud.ftc.gov/#/ or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime which can be reached at www.ovc.gov.
Final Defendant Pleads Guilty in Red Lake Heroin Conspiracy That Resulted in the Shooting Deaths of Two IndividualsRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of KRISTOPHER SULLIVAN, a/k/a “Blood Money,” 24, for his role in a heroin distribution conspiracy that resulted in the shooting deaths of two individuals. SULLIVAN entered his guilty plea before Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minnesota. SULLIVAN’s co-defendants BRYAN BOARDMAN, a/k/a “Boon,” 25, and FRANKLIN JACKSON, a/k/a “Frankie,” 23, previously pleaded guilty to one count each of conspiracy to distribute heroin.
According to the defendants’ guilty pleas and documents filed in court, between October 1, 2018, and October 21, 2018, SULLIVAN conspired with BOARDMAN and JACKSON to distribute heroin on the Red Lake Indian Reservation. In the early morning hours of October 21, 2018, SULLIVAN, BOARDMAN, and JACKSON met in a trailer home on the Red Lake Indian Reservation belonging to JACKSON’s girlfriend. The three defendants made preparations to sell heroin later that day, including contacting potential customers to let them know that heroin was available for sale at the trailer home. The defendants’ drug trafficking activities were interrupted at approximately 6:30 a.m. that morning when three armed, masked men broke into the trailer home in an apparent armed robbery. BOARDMAN drew a 9 millimeter pistol and fired eight shots, killing two of the intruders. The third intruder was wounded in the leg by the gunfire and fled from the scene.
This case is the result of an investigation conducted by the FBI Headwaters Safe Trails Task Force and the Red Lake Tribal Police Department.
Assistant U.S. Attorneys Jeffrey S. Paulsen and Julie E. Allyn are prosecuting the case.
Defendant Information:
KRISTOPHER SULLIVAN, a/k/a “Blood Money,” 24
Minneapolis, Minn.
Convicted:
- Conspiracy to distribute heroin, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
United States Attorney Trent Shores announced today the results of the June 2019 Federal Grand Jury A.
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.
Jonathan Michael Baker. Coercion and Enticement of a Minor; Distribution of Child Pornography; Attempted Receipt of Child Pornography. Baker, 40, of Salem, West Virginia, is charged with using social media to entice an individual that he believed was under the age of 18 to engage in sexual activity. He is further charged with knowingly distributing a visual depiction of a minor engaged in sexually explicit conduct, and he is charged with knowingly attempting to receive visual depictions of a minor engaged in sexually explicit conduct. The Bristow Police Department is the investigative agency.
Steven Ronald Belcher and Alisa Maria Belcher. Felon in Possession of a Firearm; Transportation of a Stolen Firearm; Pledging a Stolen Firearm as a Security for a Loan. Steven Belcher, 30, of Princeton, West Virginia, is charged with being a felon in possession of a stolen Springfield Armory 9 x 19 caliber pistol. Alisa Belcher, 30, of Princeton, West Virginia is charged with aiding and abetting Steven Belcher in the crime. The two are also charged with aiding and abetting one another when they transported the stolen firearm across state lines from West Virginia to Oklahoma. Finally, Alisa Belcher is charged with pledging as security for a loan the stolen firearm at a pawnshop. Steven Belcher is charged with aiding and abetting Alisa Belcher when she pawned the firearm. The Mayes County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Berry Allen Leerdam-Superseding Indictment. Felon in Possession of Firearms. Leerdam, 58, of St. Thomas, U.S. Virgin Islands, is charged with being a felon in possession of a Taurus .357 magnum caliber pistol frame and a Taurus .9 mm semiautomatic pistol frame. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Department of Homeland Security, Transportation Security Administration’s Federal Air Marshals are the investigative agencies.
Jana Renee Parrish. Attempted Bank Robbery. Parrish, 42, residence unknown, is charged with using force, violence and intimidation while attempting to rob a Bank of America in Tulsa. The FBI and Tulsa Police Department are the investigative agencies.
Ricardo Perez-Rocha. Drug Conspiracy. Perez-Rocha, 42, of Bakersfield, California, is charged with conspiring with others to possess with intent to distribute and to distribute 500 grams or more of methamphetamine. The Drug Enforcement Administration is the investigative agency.
Agustin Nieto Regalado. Attempted Coercion and Enticement of a Minor; Possession of False Lawful Permanent Resident Card. Regalado, 46, of Tulsa, also known as Marcos Diaz, is charged with using social media to knowingly attempt to persuade, induce, and entice a minor to engage in sexual activity. He is also charged with knowingly possessing a fraudulent permanent resident card. The Tulsa Police Department and U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE-ERO) are the investigative agencies.
Viviano Rodriguez-Escalante. Unlawful Reentry of Removed Alien. Rodriguez-Escalante, 33, of Tulsa, is charged with reentry of a removed alien, having returned to the United States unlawfully after being deported Oct. 27, 2017, at Laredo, Texas. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations is the investigative agency.
Dustin Wayne Thompson. Felon in Possession of a Firearm and Ammunition. Thompson, 26, of Tulsa, is charged with being a felon in possession of a Glock .45 caliber handgun and associated ammunition. Upon investigation, police allegedly found a switch affixed to the handgun that allowed the weapon to fire in fully automatic mode. The Tulsa Police Department is the investigative agency.
Ira Lee Wilkins. Felon in Possession of a Firearm and Ammunition. Wilkins, 38, of Tulsa, is charged with being a felon in possession of a Highpoint C9 .9 mm pistol and associated ammunition. The Tulsa Police Department is the investigative agency.
Federal Charges Filed in Wake of Fatal Robstown CrashRead the Press Release
CORPUS CHRISTI, Texas – A 23-year-old Mexican National has been charged with unlawful transportation of aliens resulting in death following the fatal alien smuggling attempt in which six people were left for dead, announced U.S. Attorney Ryan K. Patrick.
Authorities arrested Ivan Dario Puga-Moreno, of Montemorelos, Nuevo Leon, Mexico, on June 6, 2019, in Houston. He is expected to make an initial appearance June 10 at 10:00 a.m. before U.S. Magistrate Judge Dena Palermo in Houston.
According to the criminal complaint filed in Corpus Christi, authorities discovered a wrecked Chevrolet Suburban in a ditch in Robstown on June 5. Six people were found deceased at the scene with nine more requiring hospitalization due to their significant injuries, according to the charges.
The complaint alleges the subsequent investigation revealed Puga-Moreno was the driver of the wrecked vehicle and was attempting to smuggle approximately 18 illegal aliens from South Texas to Houston. Puga-Moreno allegedly fled the scene following the accident.
Puga-Moreno was smuggling the illegal aliens with the assistance of a brush guide from his hometown in Mexico, according to the charges.
If convicted, Puga-Moreno could potentially face the death penalty.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation along with the FBI, U.S. Marshals Service, Coast Guard, Border Patrol, police departments in Robstown and Corpus Christi, Nueces County Sherriff’s Office and Robstown Fire/Emergency Medical Services Department.
Assistant U.S. Attorneys John Cody Barnes and Jeremy Fugate are prosecuting the case.
A criminal complaint is an accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Fairburn Man Sentenced for Stealing Guns in Rooster BurglaryRead the Press Release
United States Attorney Ron Parsons announced that a Fairburn, South Dakota, man convicted of Theft of a Firearm was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Zephaniah Thompson, a/k/a Zephariah Thompson, age 29, was sentenced on June 6, 2019, to 57 months in federal prison, followed by 2 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from Thompson aiding and abetting another individual in breaking into The Rooster sporting goods store in Rapid City, and stealing 24 firearms in August 2018. The firearms were taken to the defendant’s residence, and a Dremel tool was utilized to remove serial numbers from several of the firearms. Some of the firearms were later traded for methamphetamine. During the investigation, 22 of the 24 stolen guns were recovered by law enforcement.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the South Dakota Department of Criminal Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Thompson was immediately turned over to the custody of the U.S. Marshals Service.
Eight Defendants Charged in Joint Federal and State Investigation of Drug Trafficking OrganizationRead the Press Release
DES MOINES, Iowa -- Eight defendants are facing criminal charges as part of a joint federal and state investigation of a cocaine and marijuana trafficking organization. Criminal complaints unsealed in the United States District Court in Des Moines and United States District Court for Central District of California charge eight defendants with federal drug offenses. Many of the federal defendants were arrested today, and preliminary and detention hearings will be held early next week.
The charges were announced by Marc Krickbaum, United States Attorney for the Southern District of Iowa; Bryan VanDuen, Acting Special Agent-in-Charge of the Omaha Field Division of the Federal Bureau of Investigation; and Dana Wingert, Chief of Police of the Des Moines Police Department. Valuable assistance was provided by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Drug Enforcement Administration; Dallas County Sheriff’s Office; Polk County Sheriff’s Office; Story County Sheriff’s Office; and the Altoona Police Department. Assistant United States Attorneys Mikaela Shotwell and Kristin Herrera represent the government.
Eight federal defendants are charged across two complaint affidavits, stemming from a months-long investigation of RAYLON CANADA and his associated cocaine and marijuana trafficking organization. The primary complaint (Case Nos. 4:19-MJ-357 through 363) alleges that CANADA, 28, of Des Moines, has been involved in the distribution of cocaine since before October 2018. On March 26, 2019, the day prior to a law enforcement action that resulted in the arrest of numerous members of the Des Moines-based criminal street gang C-Block, law enforcement obtained court authorization to intercept telephone communications of CANADA.
The primary complaint alleges that CANADA began receiving cocaine in the mail from a California-based source of supply in April 2019. This source was later identified as PEDRO BUSTAMANTE MACHUCA, 28, of Los Angeles, who was arrested today in conjunction with the Des Moines arrests. BUSTAMANTE will have his initial appearance in Central District of California before reporting to Des Moines.
The complaints identify additional customers and redistributors of controlled substances who have been charged with drug conspiracy and distribution:
• TERIKAH MEIKETIA MAHANEY, 26, of Des Moines
• MICHELLE LEE MIRELES, 39, of Des Moines
• ERIC ELMONT BOWMAN, 33, of Des Moines
• KATARIO WADE PATTON, 48, of West Des Moines
• MARVIN HAYGOOD, JR., 33, of Des Moines
• JOSEPH MANUEL JONES, 47, of Des MoinesThe months-long investigation culminated in the execution of federal narcotics and firearms search warrants on June 6, 2019, at the following locations:
• 1200 block of East 18th Street, Des Moines
• 2700 block of Southwest 9th Street, Des Moines
• 3000 block of Wright Street, Des Moines
• 2800 block of 53rd Street, Des Moines
• 400 block of East Pleasant View Drive, Des Moines
• 400 block of East Sheridan Avenue, Des Moines
• 4000 block of EP True Parkway, West Des Moines
• 2800 block of Southeast 19th Street, Des Moines
• 900 block of Northeast 56th Street, Pleasant Hill
• 4000 block of Hubbell Avenue, Des Moines
• 2800 block of Southeast 20th Street, Des Moines
• 600 block of Cutler Avenue, Des MoinesThe charges in the complaints carry a maximum penalties of twenty years’ imprisonment. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that charges contain only accusations and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Eaton Rapids Brothers Found Guilty of Receipt and Possession of Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN - United States Attorney Andrew Birge announced today that a federal jury in Kalamazoo found Adam Christopher Collard, 35, and Joseph Alan Collard, 31, both of Eaton Rapids, guilty of multiple child pornography charges. The jury convicted Adam Collard of receiving and possessing child pornography, and Adam Collard of attempting to receive and actually receiving and possessing child pornography. Adam Collard faces a mandatory minimum sentence of 15 years and a maximum sentence of 40 years in federal prison. He has a prior state conviction for possession of child pornography. Joseph Collard, on the other hand, faces a mandatory minimum sentence of five years and a maximum sentence of 20 years in federal prison.
In September of 2015, the FBI executed federal search warrants at the Collard residence in Eaton Rapids, Michigan, where the brothers resided with their parents, and at a campsite in Grand Haven, Michigan, where Adam Collard was camping at the time. A forensic examination of over 30 electronic media devices seized by the FBI revealed that Adam Collard and Joseph Collard used the internet to download images and videos of child pornography onto computers that they solely owned. The FBI also located a document titled, "The Pedophile Sex Manual" on Adam Collard’s laptop.
After two days of hearing testimony and seeing evidence admitted at trial, the jury convicted the brothers on all charges against them. The defendants are in federal custody pending their sentencing date on September 23, 2019 in Kalamazoo, Michigan.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor’s offices, the Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following website: wwww.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
The FBI conducted this investigation. The case was tried by Assistant United States Attorneys Alexis M. Sanford and Daniel T. McGraw.
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Easton Man Sentenced to Ten Years for Child Pornography CrimesRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Brandon Hosford, 21, of Easton, Maine, was sentenced today in U.S. District Court by Judge Lance E. Walker to 10 years in prison and 10 years of supervised release for possessing, transporting, and receiving child pornography. He was also ordered to pay $1,000 in restitution. Hosford pleaded guilty on October 2, 2018.
According to court records, Hosford sent images of child pornography over the internet on two occasions in October 2017, and received child pornography over the internet in November 2017. He also was found in possession of child pornography in April 2017 and in January 2018. Some of the images Hosford possessed and transmitted depicted children under the age of 12.
The investigation was conducted by U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Maine State Police Computer Crimes Unit, and the Presque Isle and Fort Kent Police Departments.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. 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 Hollywood-Based Doctor and Patient Recruiter Found Guilty in $33 Million Medicare Fraud SchemeRead the Press Release
LOS ANGELES – A federal jury has found an East Hollywood-based doctor and patient recruiter guilty today for their roles in a $33 million Medicare fraud scheme in which Medicare was billed for clinic, home health, hospice services and durable medical equipment that patients did not need or did not receive.
Following a seven-day trial, Robert A. Glazer, of North Hollywood, the owner and operator of the East Hollywood-based Glazer Clinic, was found guilty of one count of conspiracy to commit health care fraud and 12 counts of health care fraud. Co-defendant Marina Merino, 62, of Los Angeles, a marketer who recruited patients in exchange for kickback payments, was found guilty of one count of conspiracy to commit health care fraud and eight counts of health care fraud.
Glazer and Merino are scheduled to be sentenced on September 9 by United States District Judge Otis D. Wright II. Each defendant faces the possibility of decades in federal prison.
Glazer and Merino were charged in a 2015 superseding indictment, along with Angela Avetisyan, the officer manager of Glazer Clinic and co-owner of Fifth Avenue Home Health located in East Hollywood, and Ashot Minasyan, co-owner of Fifth Avenue.
According to the evidence presented at trial, Merino and other marketers received payments from Avetisyan and Minasyan to recruit Medicare beneficiaries to the Glazer Clinic. Thereafter, Glazer billed Medicare for office services and tests that patients did not need or did not receive. Glazer also referred Medicare patients for a variety of services, including home health and hospice services, as well as ordered durable medical equipment that patients did not need or did not receive. Based on referrals from Glazer, Avetisyan and Minasyan billed Medicare for home health services that were not rendered or were not medically necessary through their company, Fifth Avenue. Avetisyan, who worked as an office manager at the Glazer Clinic, also sold Glazer’s referrals to other home health and durable medical equipment agencies. Together, the defendants and their co-conspirators submitted and caused to be submitted claims of approximately $33 million, of which Medicare paid approximately $22 million, the evidence showed.
Avetisyan and Minasyan pleaded guilty to conspiracy to commit health care fraud in October 2018, and are scheduled to be sentenced on June 10.
The case was investigated by the FBI, HHS-OIG, the IRS, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The case is being prosecuted by Trial Attorneys Claire Yan, Robyn Pullio, and Emily Culbertson of the Fraud Section.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Eagle Butte Man Charged with Assault and Discharging a Firearm During a Crime of ViolenceRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon, and Discharging, Brandishing, Carrying, or Possessing a Firearm during and in Relation to a Crime of Violence.
William Hawk, Sr., age 30, was indicted on May 14, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 31, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 11, 2019, Hawk assaulted an individual by discharging a rifle at the victim with the intent to do bodily harm during and in relation to a crime of violence.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The charges are merely accusations and Hawk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Hawk was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Durable Medical Equipment Company Agrees to Settle ADA ComplaintRead the Press Release
ALEXANDRIA, Va. – Lincare, Inc., a durable medical equipment company which operates approximately 800 centers in 48 states, including 27 centers in Virginia, has agreed to settle an Americans with Disabilities Act (ADA) complaint that it failed to provide a sign language interpreter for an appointment with a patient who is deaf.
Lincare, which is headquartered in Florida, is a supplier of oxygen, durable medical equipment and other respiratory care products and related services.
The allegations involved a patient with sleep apnea, who lives in Fairfax County and is deaf. She requested that Lincare provide a sign language interpreter for an appointment at which she expected to rent a new Continuous Positive Airway Press (CPAP) device and learn about its operation, maintenance, payment options, and warranty. Lincare failed to provide the legally required auxiliary aids or services, and as a result has agreed to pay a total of $20,000 and take remedial action to resolve the complaint.
“When Congress passed the ADA, it recognized that discrimination against individuals with disabilities persisted in the provision of healthcare services,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This case demonstrates this office’s unwavering commitment to protecting the rights of those who are deaf or hard of hearing and ensuring that they are able to communicate with health care providers, including when patients receive critical information about life sustaining medical equipment. We are pleased that Lincare has agreed to take steps to ensure that all of its centers, nationwide, will provide appropriate auxiliary aids and services to individuals who are deaf or hard of hearing.”
To resolve this complaint, Lincare agreed to adopt nationwide policies that will make its services accessible; designate an ADA Administrator who will be responsible for ensuring Lincare’s compliance with the ADA; provide sign language interpreters and other auxiliary aids and services for patients and companions who need them; and provide training for its personnel on the ADA’s requirements. Lincare also agreed to pay $10,000 to the aggrieved individual, as well as a $10,000 civil penalty to the United States.
The matter was investigated by Assistant U.S. Attorney Steve Gordon, who is the Civil Rights Enforcement Coordinator for the U.S. Attorney’s Office. The civil claims settled by this Americans with Disabilities Act agreement are allegations only; there has been no determination of civil liability.
The Department of Justice has a number of publications available to assist entities in complying with the ADA, including “ADA Requirements: Effective Communication” and ADA Business BRIEF:
Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings.
For more information on the ADA and to access these publications, visit http://www.ada.gov or call the Justice Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383. ADA complaints may be filed by email to [email protected].
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Dominican Republic Man Sentenced to 10 Years’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on June 4, 2019, United States District Court Judge James M. Munley sentenced Daniel Silvestre-Ubri, age 40, to 120 months of imprisonment and a five-year term of supervised release, for conspiring to distribute heroin and crystal methamphetamine.
According to United States Attorney David J. Freed, Silvestre-Ubri, his co-defendant and brother, Willis DeLaRosa-Baez, and other individuals conspired to distribute heroin and crystal methamphetamine in Pennsylvania between February 4, 2016 and April 6, 2016. Silvestre-Ubri admitted to supplying other drug dealers with narcotics, and to trafficking in excess of 2.6 kilograms of crystal methamphetamine and 3 kilograms of heroin, the latter of which is the equivalent of 120,000 potentially fatal doses of heroin.
Silvestre-Ubri, a citizen of the Dominican Republic, entered the United States illegally and will be deported upon the conclusion of his sentence. He was indicted on May 17, 2016, and has remained in custody since his arrest on March 8, 2018. His co-defendant, DeLaRosa, was convicted and sentenced to 80 months of imprisonment. DeLaRosa also is expected to be deported upon the conclusion of his sentence.
The investigation was conducted by Homeland Security Investigations, the Pennsylvania Office of the Attorney General and the Pennsylvania State Police. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Dominican National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national pleaded guilty today in federal court in Boston to illegally reentering the United States after being deported.
Jesus Leonardo Castillo-Martinez, 45, pleaded guilty to one count of illegal reentry of a deported alien. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Sept. 10, 2019.
In 2010, Castillo-Martinez was encountered by law enforcement while serving a sentence in New Hampshire for drug distribution. Upon completion of his sentence, Castillo-Martinez was placed into removal proceedings and on April 16, 2013, and was deported to the Dominican Republic.
In 2016, Castillo-Martinez was encountered by law enforcement and determined to be illegally present in the United States. His previous order of removal was reinstated and on Nov. 1, 2016, he was deported to the Dominican Republic.
In June 2018, law enforcement officers in Billerica arrested Castillo-Martinez on a drug distribution charge. Castillo Martinez was determined to be illegally present in the United States and charged with illegal reentry. He was indicted in federal court and has since been in the custody.
Castillo-Martinez faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Todd Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
Division I Men’s College Basketball Coaches Sentenced for Their Roles in Bribery SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that LAMONT EVANS, a former assistant men’s basketball coach at the University of South Carolina (“South Carolina”) and Oklahoma State University (“OSU”), and EMANUEL RICHARDSON, a/k/a “Book,” a former assistant men’s basketball coach at the University of Arizona (“Arizona”), were each sentenced to three months in prison, and that ANTHONY BLAND, a/k/a “Tony,” a former assistant men’s basketball coach at the University of Southern California (“USC”), was sentenced to a term of probation, each for accepting cash bribes from athlete advisers in exchange for using their influence over the student-athletes they coached to retain the services of the advisers paying the bribes. The defendants were sentenced this week in Manhattan federal court by U.S. District Judge Edgardo Ramos.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Anthony Bland, Emanuel Richardson, and Lamont Evans, all former men’s basketball coaches at NCAA Division I universities, abused their positions as mentors and coaches for personal gain. They took bribes from unscrupulous agents and financial advisers to steer their players to those agents and advisers. For their crimes, Richardson and Evans will serve time in federal prison, while Bland will serve a sentence of probation. These convictions and sentencings send a strong message that bribery in the world of college basketball is a crime, and that those who participate in such crimes will be held accountable for their corrupt actions.”
According to the allegations contained in the Complaint, Indictment, Superseding Indictment, evidence presented during the trial, and statements made in Manhattan federal court:
Overview of the Scheme
The U.S. Attorney’s Office for the Southern District of New York and the Federal Bureau of Investigation (“FBI”) have been investigating the criminal influence of money on coaches and student-athletes who participate in intercollegiate basketball governed by the NCAA. The investigation revealed that numerous basketball coaches at NCAA Division I universities, including EVANS, RICHARDSON, and BLAND, received bribes and agreed to receive bribes in exchange for agreeing to pressure and exert influence over student-athletes under their control to retain the services of the bribe payers, including Christian Dawkins, Merl Code, and Munish Sood, once the athletes entered the National Basketball Association (“NBA”).
Beginning in 2016, and continuing into September 2017, when EVANS was arrested, EVANS received approximately $22,000 in cash bribes from current and aspiring financial advisers and/or managers, including Dawkins and Sood, in exchange for EVANS’s agreement to exert his influence over certain student-athletes EVANS coached at South Carolina and OSU to retain the services of the bribe payers once those players entered the NBA. In one meeting recorded during the investigation, EVANS explained how “every guy I recruit and get is my personal kid,” and that “the parents believe in me and what I do . . . that’s why I say, if I need X, so if I do take X for that, it’s going to generate [business] toward you guys,” referring to the bribe payers. EVANS also stated in a call recorded during the investigation how this arrangement was “generating more wealth” for the scheme participants, because they were “able to scratch my back, scratch yours, and help each other with different things and . . . at the same time get compensated and then . . . just go from there.” In return for the cash bribes EVANS received, EVANS, including at in-person meetings, attempted to pressure a player at OSU, and a relative of a different player attending South Carolina, into retaining the financial services of the bribe payers.
Beginning in or around February 2017, and continuing into September 2017, when RICHARDSON was arrested, RICHARDSON received approximately $20,000 in cash bribes from Dawkins and Sood in exchange for RICHARDSON’s agreement to exert his influence over certain student-athletes RICHARDSON coached at Arizona to retain the services of Dawkins and Sood once those players entered the NBA. For example, in discussing his commitment to steering Arizona players to retain the bribe payers upon entering the NBA, RICHARDSON told an undercover FBI agent and others, during a recorded meeting, “I used to let kids talk to three or four guys, but I was like, why would you do that? You know that’s like taking a kid to a BMW dealer, a Benz dealer, and a Porsche dealer. They like them all . . . You have to pick for them.” In return for the cash bribes RICHARDSON received, RICHARDSON facilitated a meeting between the bribe payers, including Dawkins and Sood, and a relative of a player attending Arizona for the purpose of pressuring that player to retain the financial services of the bribe payers.
Beginning in or around July 2017, and continuing into September 2017, when BLAND was arrested, Dawkins paid a cash bribe to BLAND in exchange for BLAND’s agreement to exert his influence over certain student-athletes BLAND coached at USC, and to retain Dawkins’s and Sood’s business management and/or financial advisory services once those players entered the NBA. In particular, as BLAND told Dawkins and Sood during a recorded meeting, in return for their bribe payment, “I definitely can get the players. . . . And I can definitely mold the players and put them in the lap of you guys.” As part of the scheme, BLAND facilitated a meeting between Dawkins and Sood and a relative of a player attending USC, and a meeting between Dawkins and Sood and a relative of a USC recruit, both for the purpose of pressuring those players to retain the financial services of Dawkins and Sood.
* * *
In addition to the prison sentences, Judge Ramos ordered LAMONT EVANS, 41, of Deerfield Beach, Florida, to pay forfeiture in the amount of $22,000, EMANUEL RICHARDSON, 46, of Tucson, Arizona, to pay forfeiture in the amount of $20,000, and ANTHONY BLAND, 39, of Gardena, California, to pay forfeiture in the amount of $4,100. Each of the three defendants was sentenced to two years of supervised release, and EVANS and BLAND were also each sentenced to 100 hours of community service.
Christian Dawkins and Merl Code were each found guilty by a unanimous jury on May 8, 2019, of one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison. Dawkins was also convicted of an additional count of bribery, which carries a maximum sentence of 10 years in prison. Sentencing is scheduled for August 15, 2019, before Judge Ramos.
Munish Sood, a financial adviser, previously pled guilty, pursuant to a cooperation agreement with the Government, in connection with this scheme and is awaiting sentence.
Mr. Berman praised the work of the FBI and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Robert L. Boone, Noah Solowiejczyk, and Eli J. Mark are in charge of the prosecution.
District Man Sentenced to 60 Months in Prison on Federal Firearms and Narcotics ChargesRead the Press Release
WASHINGTON – Ricardo Burnette, 54, of Washington, D.C., was sentenced today to 60 months in prison on firearms and narcotics offenses stemming from an investigation in which law enforcement recovered three firearms and numerous types of narcotics, announced U.S. Attorney Jessie K. Liu, Ashan M. Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Burnette pled guilty on March 22, 2019, in the U.S. District Court for the District of Columbia, to one count of using, carrying, and possessing a firearm during a drug trafficking offense. He was sentenced by the Honorable Beryl A. Howell. Following his prison term, he will be placed on three years of supervised release.
According to the government's evidence, on October 30, 2018, MPD and ATF executed a search warrant at Burnette’s residence in Northwest Washington, D.C., and recovered numerous items, to include an assault rifle, a revolver, and a semiautomatic pistol, as well as ballistic vests and numerous types of ammunition, including four high-capacity magazines loaded with more than 90 rounds of ammunition. Officers also recovered a number of different types of narcotics, to include opiates, cocaine, amphetamines, marijuana, liquid PCP, as well as numerous items of drug paraphernalia.
Burnette was arrested at his residence when the search warrant was executed and has been detained since the time of his arrest.
In announcing the sentence, U.S. Attorney Liu, Special Agent in Charge Benedict, and Chief Newsham commended the work of those who investigated the case from ATF and MPD. They also commended the efforts of those who worked in the case from the U.S. Attorney’s Office including Assistant U.S. Attorney Jillian Willis, Assistant U.S. Attorney Laura Crane, and Paralegal Specialists Rommel Pachoca and Teesha Tobias.
District Man Sentenced to 60 Months in Prison on Federal Firearms and Narcotics ChargesRead the Press Release
WASHINGTON – Ricardo Burnette, 54, of Washington, D.C., was sentenced today to 60 months in prison on firearms and narcotics offenses stemming from an investigation in which law enforcement recovered three firearms and numerous types of narcotics, announced U.S. Attorney Jessie K. Liu, Ashan M. Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Burnette pled guilty on March 22, 2019, in the U.S. District Court for the District of Columbia, to one count of using, carrying, and possessing a firearm during a drug trafficking offense. He was sentenced by the Honorable Beryl A. Howell. Following his prison term, he will be placed on three years of supervised release.
According to the government's evidence, on October 30, 2018, MPD and ATF executed a search warrant at Burnette’s residence in Northwest Washington, D.C., and recovered numerous items, to include an assault rifle, a revolver, and a semiautomatic pistol, as well as ballistic vests and numerous types of ammunition, including four high-capacity magazines loaded with more than 90 rounds of ammunition. Officers also recovered a number of different types of narcotics, to include opiates, cocaine, amphetamines, marijuana, liquid PCP, as well as numerous items of drug paraphernalia.
Burnette was arrested at his residence when the search warrant was executed and has been detained since the time of his arrest.
In announcing the sentence, U.S. Attorney Liu, Special Agent in Charge Benedict, and Chief Newsham commended the work of those who investigated the case from ATF and MPD. They also commended the efforts of those who worked on the case from the U.S. Attorney's Office including Assistant U.S. Attorney Jillian Willis, Assistant U.S. Attorney Laura Crane, and Paralegal Specialists Rommel Pachoca and Teesha Tobias.
Defendant Found Guilty for Making False Statements in Garland Shooting InvestigationRead the Press Release
PHOENIX, Ariz. – On June 4, 2019, Abdul Khabir Wahid, 53, of Phoenix, was found guilty by United States District Judge John J. Tuchi of making a false statement to the FBI during an investigation involving international terrorism, in violation of 18 U.S.C. § 1001(a)(2), and tampering with a witness, in violation of 18 U.S.C. § 1512(b)(3). Wahid’s trial was held before Judge Tuchi from February 26, 2019 to March 1, 2019, after Wahid waived a trial by jury.
Wahid committed the offenses during the FBI investigation of the May 3, 2015, ISIS-related attack on the Muhammad Art Exhibit and Contest in Garland, Texas. Elton Simpson and Nadir Soofi drove from Arizona to Texas to conduct the attack, where they stopped their car near the contest location and began firing semiautomatic rifles at security personnel and law enforcement officers. One of their bullets struck and injured a security guard. Police officers shot and killed Simpson and Soofi during the firefight. Wahid did not travel to Texas and was not directly involved in the attack.
On May 1, 2015, just days before the attack, Simpson instructed Wahid to deliver a key and an envelope to a third person. During a May 6, 2015 interview with FBI agents, Wahid made false statements and concealed these facts, despite having delivered the key and envelope, as instructed by Simpson. Also, between May 4 and July 8, 2015, Wahid tried to persuade Soofi's brother not to speak with the FBI, to lie about seeing Simpson and Soofi with guns, and to lie about observing ISIS propaganda videos in Simpson's and Soofi's apartment.
Judge Tuchi found the delay “caused agents to apply scarce investigative resources to hunt for ‘needles in haystacks,’” and that Wahid’s false statement misdirected investigative assets, caused delays, and “in turn resulted in the agent’s failure to recover some evidence which was disposed of in the interim.”
“The guilty verdict for purposefully obstructing a terrorism investigation into an attack on our nation’s homeland in the name of ISIS, sends a strong message to those who support terrorists. Our office has an unwavering commitment to combatting terrorism and prosecuting all perpetrators who impede terrorism investigations and tamper with witnesses,” said U.S. Attorney Bailey. “I want to thank the FBI for the tremendous effort that went into the underlying investigation, as well as the brave law enforcement officials in Garland whose quick action during the attack prevented a much larger tragedy.”
Wahid is scheduled for sentencing on August 26, 2019, before Judge Tuchi. Wahid’s convictions carry a statutory maximum sentence of 28 years in prison.
The case was investigated by the FBI, and the prosecution was handled by Assistant U.S. Attorneys Kristen Brook and Joseph Koehler of the District of Arizona.
Courtland Man Sentenced to 40 Years in Prison for Production of Child PornographyRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of PHILLIP MARK REINHART, 38, to 40 years in prison for production and attempted production of child pornography. REINHART, who pleaded guilty on January 17, 2019, was sentenced before Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, between May 2017 and March 2018, REINHART created and attempted to create sexually explicit images of two minors who were seven and nine years old at the time of the offense. REINHARD then distributed those images, along with other images and videos of child pornography, via Kik Messenger.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is the result of an investigation conducted by the FBI and the Nicollet County Sheriff's Office.
Assistant U.S. Attorney Manda M. Sertich prosecuted the case.
Defendant Information:
PHILLIP MARK REINHART, 38
Courtland, Minn.
Convicted:
- Production of child pornography, 1 count
- Attempted production of child pornography, 1 count
Sentenced:
- 480 months in prison
- 20 years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Couple Pleads Guilty to Straw Purchasing FirearmsRead the Press Release
ALEXANDRIA, Va. – A Fredericksburg couple pleaded guilty late yesterday to straw purchasing firearms and unlawful possession of a firearm by an individual previously convicted of a misdemeanor crime of domestic violence.
“Every straw purchased firearm is a gun that can wind up in the hands of a prohibited person,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We will continue to use federal firearms laws to prosecute straw purchasers and hold them accountable for their role in trafficking illegally purchased firearms. I want to commend the ATF for their commitment to investigating these important cases.”
According to court documents, Tina Marie Cochran, 41, straw purchased several firearms on behalf of Brant Wilson Shorden, 43, who was prohibited from possessing or purchasing firearms as a result of three prior convictions of misdemeanor domestic violence here in Virginia. Following the purchase of these firearms, Shorden posted pictures and videos of himself and Cochran shooting and brandishing the firearms at their residence in Fredericksburg.
Shorden pleaded guilty to possessing firearms following a conviction of a misdemeanor crime of domestic violence and faces a maximum penalty of 10 years in prison. Cochran pleaded guilty to making false statements with respect to the purchase of firearms and faces a maximum penalty of 5 years in prison. Both will be sentenced on September 6. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the plea. Assistant U.S. Attorney Nicholas U. Murphy II is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-138.
Convicted Felons Indicted for Illegal Firearms PossessionRead the Press Release
BIRMINGHAM – An effort focused on domestic violence in gun crimes resulted in federal charges against five defendants, announced U.S. Attorney Jay E. Town, Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
In separate and unrelated indictments, the grand jury charged LYNN GADSON, NICHOLAS CAMPBELL, KERRY ALFORD, KELVIN STRICKLAND, MONTEZ SPRADLEY, ANDRAE CROOK, as convicted felons in possession of firearms. These investigations originated from local law enforcement responding to domestic violence calls.
The maximum penalty for being a felon in possession of a firearm is 10 years in prison and a $250,000 fine.
“These indictments represent the hard work of our federal, state and local law enforcement partners,” Town said. “This is the new normal in that local investigators and prosecutors are cooperating with federal law enforcement more than ever before to get these trigger-pullers off of the streets. Felons who possess firearms should expect to find themselves in federal court where, upon conviction, a federal sentence to a federal penitentiary is their reward.”
“ATF’s priority of reducing violent crime focuses on individuals responsible for domestic violence incidents involving firearms,” Watson stated.
In FY18, the United States Attorney’s Office Northern District of Alabama prosecutions of illegal firearms cases rose 27% to 286, which is the largest number of illegal firearms prosecutions ever recorded in the Northern District of Alabama and accounted for about half of all federal prosecutions by the United States Attorney’s Office. The previous high was 225, which was recorded in FY17. Nationally, the prosecution of illegal firearms defendants accounts for approximately 1 in 6 of all federal prosecutions. Project Safe Neighborhoods, the premier violent crimes reduction program reinvigorated by the Department of Justice in 2017, has continued to focus on habitual felony offenders engaged in violent behavior and the Department continues to break its own records for federal prosecutions as a result.
Convicted Felon Indicted on Drug Trafficking, Firearm ChargesRead the Press Release
PROVIDENCE – A Warwick man arrested in early May during an investigation by Newport and Warwick Police into the alleged theft of two firearms from a Newport residence has been indicted by a federal grand jury on drug trafficking and firearm charges.
Brian Thompson, 45, was arrested on May 8, 2019, after one of the reported stolen firearms was allegedly located under the rear seat of his pick-up truck during a traffic stop effectuated by Warwick Police, in conjunction with the Newport Police investigation. Also allegedly seized from Thompson was 19 grams of crack cocaine, $4,436 in cash, and various items used in the distribution and use of crack cocaine.
A court-authorized search warrant executed at Thompson’s Warwick residence the day of his arrest resulted in the seizure of a substantial quantity of cocaine, marijuana, assorted pills, $26,400 in cash, 64 gift cards, jewelry, and various items used in the packaging and distribution of drugs.
Thompson, previously convicted of assault with a dangerous weapon, and who had been detained in state custody since his arrest on state charges on May 8, 2019, has been indicted by a federal grand jury on charges of possession with intent to distribute cocaine base, possession with intent to distribute cocaine, felon in possession of a firearm, possession of a stolen firearm, and possession of a firearm in furtherance of a drug trafficking crime.
Thompson is now detained in federal custody.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Thompson’s indictment is announced by United States Attorney Aaron L. Weisman, Newport Police Chief Gary T. Silva, Warwick Police Chief Colonel Rick J. Rathbun, and Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division Brian D. Boyle.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
United States Attorney Aaron L. Weisman acknowledges and thanks the Bureau of Alcohol, Tobacco, Firearms, and Explosives for their assistance to the Newport and Warwick Police Departments in the investigation of this matter and the Rhode Island DEA Drug Task Force for their assistance in preparing this matter for prosecution.
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Cincinnati Police Captain Charged FederallyRead the Press Release
CINCINNATI – A Captain with the Cincinnati Police Department was arrested yesterday afternoon on a charge of theft and bribery.
Michael Savard, 52, of Anderson Township, appeared in court today at 1pm before U.S. Magistrate Judge Karen L. Litkovitz. The case was unsealed at that time.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, William Cheung, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation and Cincinnati Police Chief Eliot K. Isaac announced the charge.
According to an affidavit filed in support of the criminal complaint, Savard is a 25-year veteran of the Cincinnati police force. He has served as a captain overseeing the Special Services Section for approximately two years and was a lieutenant for 14 years.
While under investigation by the IRS and Cincinnati Police for potential criminal offenses related to financial benefits received as a result of his employment with the Cincinnati Police Department, it is alleged that Savard asked for and received $5,000 from a sergeant within the police department in exchange for Savard’s promise to retire from the Cincinnati Police Department so that the sergeant could be promoted to the rank of lieutenant.
The sergeant was next in line on a promotion eligibility list that was due to expire this month. Unless promoted prior to the expiration of the promotion eligibility list, the sergeant would have to retake a civil service promotional exam and might then lose his currently-held top position on the promotion list.
It is alleged that Savard told the sergeant he was going to work out a deal to plead guilty to federal charges and was thinking of retiring in July. He allegedly told the sergeant he would retire earlier – in June, prior to the sergeant’s expiration on the promotion list – if the sergeant paid Savard $5,000.
Savard accepted the $5,000 in cash yesterday and was immediately arrested by Special Agents of the Internal Revenue Service’s Criminal Investigation division, working in conjunction with the Cincinnati Police Department.
Theft and bribery is a federal crime punishable by up to 10 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation and Cincinnati Police Department, as well as Deputy Criminal Chief Karl P. Kadon and Assistant United States Attorney Matthew Singer, who are prosecuting the case.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
We are unable to comment further on the federal investigation, as it is ongoing.
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Bronx Man Sentenced to More Than 4 Years in Prison for Multimillion-Dollar Fraud Scheme Involving Business Email Compromises and Romance Scams Targeting the ElderlyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that MUFTAU ADAMU, a/k/a “Muftau Adams,” a/k/a “Muftau Iddrissu,” was sentenced today to 51 months in prison in connection with a fraud scheme based in the Republic of Ghana (“Ghana”) involving the theft of over $10 million through business email compromises and romance scams that targeted elderly victims from at least 2014 through 2018. ADAMU pled guilty to conspiracy to commit wire fraud on February 12, 2019, before U.S. Magistrate Judge Kevin Nathaniel Fox. U.S. District Judge Denise L. Cote imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Muftau Adamu and his co-defendants conspired with others in Ghana to steal millions of dollars from businesses and vulnerable individuals across the United States through business email compromises and romance scams. Today’s sentencing sends a message that those who facilitate frauds will face significant time in jail. We will continue to work with our law enforcement partners to investigate and prosecute such fraud schemes, no matter where they originate.”
According to allegations in the Complaints and the Indictment filed in the case:
Between 2014 and 2018, ADAMU, TOUREY AHMED RUFAI, a/k/a “Joe Thompson,” a/k/a “Joe Terry,” a/k/a “Rufai A Tourey,” a/k/a “Ahmed Rufai Tourey,” and PRINCE NANA AGGREY were members of a criminal enterprise (the “Enterprise”) based in Ghana that committed a series of business email compromises and romance scams against individuals and businesses located across the United States, including in the Southern District of New York.
The objective of the Enterprise’s business email compromise fraud scheme was to deceive businesses into wiring funds into accounts controlled by the Enterprise. First, members of the Enterprise created email accounts with slight variations of email accounts used by employees of a victim company or third parties engaged in business with a company to “spoof” or impersonate those employees or third parties. These fake email accounts were specifically designed to trick other employees of the company with access to the company’s finances into thinking the fake email accounts were authentic. The fake email accounts were used to send instructions to wire money to certain bank accounts and also included fake authorization letters for the wire transfers that contained forged signatures of company employees. By using this method of deception, the Enterprise sought to trick the victims into transferring hundreds of thousands of dollars to bank accounts the victims believed were under the control of legitimate recipients of the funds as part of normal business operations, when, in fact, the bank accounts were under the control of members of the Enterprise, including ADAMU, RUFAI, and AGGREY.
The Enterprise conducted the romance scams by using electronic messages sent via email, text messaging, or online dating websites that deluded the victims, many of whom were vulnerable men and women over the age of 60 who lived alone, into believing the victim was in a romantic relationship with a fake identity assumed by members of the Enterprise. Once members of the Enterprise had gained the trust of the victims using the fake identity, they used false pretenses to cause the victims to wire money to bank accounts the victims believed were controlled by their romantic interests, when, in fact, the bank accounts were controlled by members of the Enterprise. At times, the members of the Enterprise also used false pretenses to cause the victims to receive funds into the victims’ bank accounts, which, unbeknownst to the victims, were fraud proceeds, and to transfer those funds to accounts under the control of members of the Enterprise. The members of the Enterprise, posing as the romantic interest of the victims, also introduced the victims to other individuals purporting to be, for example, consultants or lawyers, who then used false pretenses to cause the victims to wire money to bank accounts controlled by members of the Enterprise.
ADAMU, RUFAI, AGGREY, and their co-conspirators received or otherwise directed the receipt of more than $10 million in fraud proceeds from victims of the Enterprise in bank accounts that they controlled in the Bronx, New York. Some of these bank accounts were opened using fake names, stolen identities, or shell companies in order to avoid detection and hide the true identities of the members of the Enterprise controlling those accounts. Once the defendants received the fraud proceeds in bank accounts under their control, the defendants withdrew, transported, and laundered those fraud proceeds to other members of the Enterprise, including those located in Ghana.
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In addition to the prison term, ADAMU, 30, of the Bronx, New York, was sentenced to three years of supervised release and ordered to forfeit $114,281.51 and pay restitution of $443,000 to victims.
RUFAI, 33, of the Bronx, New York, pled guilty to conspiracy to commit wire fraud on January 9, 2019, and was sentenced by Judge Cote on April 12, 2019, to 48 months in prison, three years of supervised release, and ordered to forfeit $109,868.61 and pay restitution of $320,449.97 to victims.
AGGREY, 43, of the Bronx, New York, pled guilty to conspiracy to commit wire fraud on January 28, 2019, and was sentenced by Judge Cote on May 10, 2019, to 30 months in prison, three years of supervised release, and ordered to forfeit $71,595.60 and pay restitution of $431,884.00 to victims.
U.S. Attorney Berman praised the outstanding investigative work of the Federal Bureau of Investigation (“FBI”) and the Internal Revenue Service, Criminal Investigation. Mr. Berman also thanked U.S. Customs and Border Protection, Ghana’s Economic and Organised Crime Office, and the FBI Legal Attaché in Accra, Ghana, for their helpful assistance with the investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sagar K. Ravi and Andrew D. Beaty are in charge of the prosecution.