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7 May 2019
Ohio man indicted for firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kenneth Tribett, of Bellaire, Ohio, was indicted by a federal grand today on a firearms charge, United States Attorney Bill Powell announced.
Tribett, age 46, was indicted on two counts of “Unlawful Possession of a Firearm.” Tribett, having been previously convicted of a felony, is accused of having a .9mm pistol, a 6.35 caliber pistol, and a 22 caliber revolver in January and March 2019 in Ohio County.
Tribett faces up to 10 years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Wheeling Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
New Orleans Man Sentenced for Making False Statements to a Financial InstitutionRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that PATRICK HEALEY, age 34, of New Orleans, and a former employee of an undisclosed entity, ABC Homes, LLC, located in St. Bernard Parish, was sentenced May 1, 2019 for his role in making false statements to a financial institution.
According to court documents, beginning in or around October 24, 2008 and continuing to on or about May 31, 2009, HEALEY, along with co-defendants JARED CASTELLAW and VALERIE SCHONES made false statements to the Federal Housing Administration (“FHA”) in order to assist low-income borrowers in qualifying for FHA insured loans for which they would not otherwise have qualified. In total, due to the acts of the defendants, the FHA suffered a loss in excess of $852,415.
HEALEY was sentenced to time served, supervised release of 5 years, a special assessment of $100, and ordered to pay restitution in the amount of $852,415.
U.S. Attorney Strasser praised the work of the Department of Housing and Urban Development, Office of Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Sharan E. Lieberman and Edward J. Rivera.
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Milton Man Sentenced for Sex TraffickingRead the Press Release
BOSTON – A Milton man was sentenced today in federal court in Boston for federal sex trafficking charges.
Duhamel Cassagnol, 31, was sentenced by U.S. District Court Judge Allison D. Burroughs to 17 years and three months in prison, five years of supervised release, and was ordered to pay restitution of approximately $13,249 to a group of four victims. In September 2018, Cassagnol pleaded guilty to sex trafficking by force, fraud, or coercion; engaging in a conspiracy to commit sex trafficking; and transporting three individuals for prostitution. In December 2017, Cassagnol was arrested along with Geneiva Whaley, 24, of Connecticut. In May 2018, Whaley pleaded guilty to one count of transportation of an individual for prostitution. In October 2018, she was sentenced to 12 months in prison and five years of supervised release.
Between approximately July 2014 and February 2016, Cassagnol worked with Whaley to prostitute at least four victims. Cassagnol and Whaley advertised the victims using online ad‑posting sites, including Backpage.com, and housed the victims in hotel rooms reserved in Whaley’s name in Massachusetts, Connecticut, New York and Florida. Using online advertisements, Cassagnol and Whaley attracted sex-for-a-fee clients whom they directed to the hotel rooms that housed their victims. Those victims generally had little or no control over what acts they were required to engage in or what fee would be charged for those acts. After the clients left, Cassagnol or Whaley collected the full proceeds from the victims, leaving the victims dependent on Cassagnol and Whaley for food and shelter.
Cassagnol and Whaley’s victims were all addicted to drugs, usually heroin, and to keep them compliant, Cassagnol and Whaley provided them with drugs in exchange for the income the women earned through prostitution. The victims were only entitled to drugs if they generated income. With three of the victims, Cassagnol was sometimes violent, and he threatened violence against all four. The violence included beating the victims and, in at least one instance, forcing a victim to use drugs against her will.
The charge of sex trafficking through force, fraud, or coercion provides for a sentence of no less than 15 years and up to life in prison, no less than five years and up to a lifetime of supervised release, and a fine of up to $250,000. The charge of conspiracy to commit sex trafficking provides for a sentence of up to life in prison, no less than five years and up to a lifetime of supervised release, and a fine of up to $250,000. The charge of transporting an individual for prostitution provides for a sentence of up to 10 years in prison, no less than five years and up to a lifetime of supervised release, and a fine of up to $250,000. Each count also provides for mandatory restitution and potential forfeiture. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Peter C. Fitzhugh, Special Agent in Charge of the Homeland Security Investigations in Boston, made the announcement today. Assistance with the investigation was provided by the Massachusetts State Police, Lexington and Needham Police Departments, and Vernon (Connecticut) Police Department. Assistant U.S. Attorney Brian A. Pérez-Daple of Lelling’s Civil Rights Enforcement Team is prosecuting the case.
Mexican National Convicted of Illegal Reentry for a Third TimeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that FABIOLA BASTIAN MOJICA, 38, a citizen of Mexico most recently residing in Stamford, pleaded guilty today in Hartford federal court to reentry of a removed alien. It is Bastian Mojica’s third conviction for illegal reentry.
According to court documents and statements made in court, in May 2003, Bastian Mojica, who at the time was a lawful permanent resident of the U.S., was convicted in Stamford superior court of possession of a hallucinogen/marijuana. Bastian Mojica’s lawful permanent residence status was revoked and, in November 2003, she was removed to Mexico.
In October 2005, Bastian Mojica was arrested by Greenwich Police and was subsequently convicted in state court of evading responsibility resulting in injury/property damage, and possession of marijuana. She was also charged and convicted in federal court of reentry of a removed alien. In January 2008, Bastian Mojica was removed to Mexico.
In July 2008, Bastian Mojica was arrested in Stamford. She was again removed to Mexico in August 2008.
In January 2010, Bastian Mojica was apprehended by the U.S. Border Patrol in Columbus, New Mexico. She was subsequently charged in the District of New Mexico with illegal reentry of a removed alien, and with violating the conditions of her supervised release related to her prior conviction for illegal reentry. She was convicted of both offenses and, following the completion of her sentence, was removed to Mexico in April 2011.
On October 23, 2018, Bastian Mojica was arrested by Stamford Police for a motor vehicle violation, and was subsequently charged with failure to appear. On March 7, 2019, after her identity was confirmed through a fingerprint analysis, she was arrested on a federal criminal complaint charging her with illegal reentry. She has been detained since her federal arrest.
Bastian Mojica is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on July 17, 2019, at which time she faces a maximum term of imprisonment of 10 years.
The investigation was conducted by the Department of Homeland Security, Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Mexican Drug Trafficker Sentenced to 10 Years in PrisonRead the Press Release
NORFOLK, Va. – A Mexican man was sentenced today to 10 years in prison for conspiracy to distribute and possess with intent to distribute 5 kilograms or more of cocaine.
According to court documents, Ulises Garcia-Razo, 39, flew from Mexico to Norfolk on two occasions in June and July of 2018 to collect over $500,000 in narcotics proceeds and to retrieve multiple kilograms of unsold cocaine that had previously been shipped to Virginia. Garcia-Razo acted on behalf of a large-scale cocaine trafficking organization based in Mexico and California whose members orchestrated the delivery of at least two large shipments of cocaine in the spring and early summer of 2018. The cocaine was shipped cross-country by truck and delivered to a Public Storage business in Virginia Beach disguised as hot-air balloon equipment. In July 2018, Garcia-Razo and other co-defendants were arrested at a local hotel with 8 kilograms of cocaine and a large amount of cash after FBI, DEA, and Norfolk Police set up a successful sting operation.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Goodfellas. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Larry D. Boone, Chief of Norfolk Police, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Sherrie S. Capotosto prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-156.
Members of Methamphetamine Distribution Organization SentencedRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton has sentenced James Kamisky (54, Augusta, GA) to 20 years in federal prison for his role in a drug conspiracy involving the distribution of large quantities of methamphetamine in Orlando. In addition, Jada Thomas (28, Orlando) was sentenced to 11 years and 8 months in federal prison for her participation in the drug conspiracy and for possessing a firearm in furtherance of a drug-trafficking crime, and Dejah Gooding (23, Snellville, GA) was sentenced to 9 years and 2 months’ imprisonment for her participation in the drug conspiracy.
Kamisky had pleaded guilty on January 15, 2019. Thomas and Gooding had pleaded guilty on January 22, 2019, and December 18, 2018, respectively.
According to court documents, in November 2018, Kamisky possessed with the intent to distribute more than 2 kilograms of methamphetamine. Kamisky provided Thomas and Gooding with approximately 1.4 kilograms of this methamphetamine, which they attempted to sell to a Drug Enforcement Administration informant on November 13, 2018, at an Orlando resort. At the time of the attempted sale, Thomas was in possession of a loaded firearm. Later in the day on November 13, 2018, Kamisky attempted to deliver more methamphetamine to Thomas and Gooding, at which time law enforcement agents arrested him after a brief vehicle pursuit.
“The Drug Enforcement Administration is committed to investigating those individuals or organizations that are distributing dangerous drugs, committing acts of violence, and fueling the addiction that destroys communities and families,” said Assistant Special Agent in Charge Marcus R. Anderson.
This case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Florida Highway Patrol, the Seminole County Sheriff’s Office, the Brevard County Sheriff’s Office, and the Longwood Police Department. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
MS-13 Gang Member Sentenced to More than 25 Years in Prison for Attempted Murder that Left a 16-Year-Old ParalyzedRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Kevin Paniagua, a member of the Centrales Locos Salvatruchas (CLS) clique of La Mara Salvatrucha, also known as MS-13, a transnational criminal organization, was sentenced by United States District Judge Roslynn R. Mauskopf to 308 months in prison for the October 23, 2016 attempted murder of a 16-year-old victim suspected of being a member of the rival 18th Street gang. Paniagua pleaded guilty to the charges in June 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“With today’s sentence, Paniagua has been held responsible for wanton violence he committed on behalf of of the MS-13 gang that left a teenager paralyzed,” stated United States Attorney Donoghue. “The Department of Justice and its law enforcement partners will continue working tirelessly to eradicate the MS-13 and all gangs that threaten the safety of our communities.”
“These gangs require violence of new recruits, and Mr. Paniagua did all he could to live up to their dangerous and warped initiation process. Our communities get caught in the middle of these deadly attacks and fear the harm that could come from stray bullets intended for a rival gang,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI New York Metro Safe Streets Task Force won't rest until we stop these criminal organizations from filling their ranks with members willing to kill for acceptance.”
“Gang violence will not be tolerated, and the message of this sentencing is clear – the NYPD and our law enforcement partners will hold responsible any violent gang members such as MS-13 for their criminal acts. I thank our colleagues at the Eastern District and the FBI for their unceasing professionalism and dedicated work in removing from our streets anyone who would commit crime and disorder,” stated NYPD Commissioner O’Neill.
In the early morning hours of October 23, 2016, Paniagua and his co-conspirators confronted the victim in Jamaica, Queens. There, they punched and kicked him, and Paniagua pulled out a handgun and shot the victim in the face. Paniagua then attempted to shoot the victim a second time as he lay on the sidewalk, but the gun jammed. The victim is a paraplegic as a result of the attack.
Today’s sentencing is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of MS-13, a violent international criminal organization. MS-13’s leadership is based in El Salvador and Honduras, and the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those gang members have been convicted of federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 45 murders in the district, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by our law enforcement partners, including the FBI’s Safe Streets Task Force, comprising agents and officers of the FBI and NYPD.
The government’s case is being handled by the Office’s Organized Crime & Gang Section. Assistant United States Attorney Nadia Moore is in charge of the prosecution.
The Defendant:
KEVIN PANIAGUA
Age: 20
Queens, New YorkE.D.N.Y. Docket No. 17-CR-307 (RRM)
Lynn Man Pleads Guilty to Bank Fraud and ID TheftRead the Press Release
BOSTON – A Lynn man pleaded guilty today in connection with a scheme to impersonate bank customers and fraudulently withdraw money from their bank accounts.
Antonio Niati, 28, pleaded guilty to one count of conspiracy to commit bank fraud, and one count of aiding and abetting aggravated identity theft. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Aug. 14, 2019. In September 2018, Niati was indicted and arrested.
In 2017, Niati recruited a bank teller working at a Santander Bank branch in Dorchester to assist in conducting fraudulent transactions in victim bank accounts. On three occasions in April 2017, another co-conspirator conducted transactions in two Santander Bank customers’ accounts using fraudulent driver’s licenses, all with the assistance of Niati and the recruited teller. Niati and his co-conspirators fraudulently withdrew over $640,000 from the customers’ accounts.
The charge of conspiracy to commit bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release and a fine of up to $1 million. The charge of aggravated identity theft provides for a mandatory sentence of two years, to be served consecutively to any other imposed sentence, one year of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Mark Balthazard of Lelling’s Economic Crimes Unit is prosecuting the case.
Lewis County Magistrate and Gilmer County Magistrate indicted on wire fraud, mail fraud, and obstruction chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Lewis County Magistrate Roger D. Clem, Jr. and Gilmer County Magistrate Alton L. Skinner, II were indicted today by a federal grand jury on charges involving wire fraud, mail fraud, and obstruction charges, United States Attorney Bill Powell announced.
Clem, age 47, of Weston, West Virginia, and Skinner, age 57, of Sand Fork, West Virginia, were each indicted on one count of “Conspiracy to Commit Mail Fraud and Wire Fraud,” two counts of “Wire Fraud,” two counts of “Mail Fraud,” and one count of “Obstruction of Justice.” Skinner was also charged with one count of “False Statement to a Federal Agent.”
E-Z Out, LLC, based in Sand Fork, West Virginia, is an authorized bonding company in Lewis County. According to company records, E-Z Out is operated solely by Alton Skinner’s spouse, and employs Skinner’s son as an authorized bonding agent. Clem is accused of taking favorable actions in the courtroom for E-Z Out, including setting unnecessary surety bonds. Clem is accused of calling Skinner to arrange the bond of a detainee without presenting a list of authorized bonding companies to the detainee. Skinner would allegedly arrange for his spouse or son, as agents of E-Z Out, to be present at the arraignment of the detainee without the detainee’s informed choice of E-Z Out amongst other authorized bonding companies.
Clem and Skinner are accused of causing payments via electronic transmission which traveled outside of West Virginia. The two are also accused of mailing a contract and checks between Skinner’s spouse and Dave Bourne Bail Bonds, Inc. in Virginia, the general agent of the underwriter for E-Z Out.
Both men allegedly attempted to obstruct or impede the grand jury investigation. Skinner also allegedly made false statements to a special agent from the Internal Revenue Service Special Investigation Unit.
The United States is also seeking a money judgment in the amount of $18,900.
Clem and Skinner each face up to 20 years incarceration and a fine of up to $250,000 for each of the conspiracy, wire fraud and mail fraud, and obstruction counts. Skinner also faces up to five years incarceration and a fine of up to $250,000 for the false statement count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod J. Douglas is prosecuting the cases on behalf of the government. The Internal Revenue Service-Criminal Investigation and the West Virginia Commission on Special Investigations investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Leader of Sex Trafficking Ring Pleads Guilty to Multiple Felony ChargesRead the Press Release
SAN JOSE – Ariel Guizar-Cuellar pleaded guilty in federal court in San Jose today to sex trafficking of children and sexual exploitation of children, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The Honorable Beth Labson Freeman, U.S. District Judge, accepted the plea.
In pleading guilty, Guizar-Cuellar, 38, of San Jose, admitted that from approximately September of 2014 until approximately January of 2016, he and various co-conspirators operated an unlawful commercial sex venture in San Jose and Santa Clara that sold the sexual services of adult women and at least three minor girls.
Guizar-Cuellar was the leader, primary facilitator, enforcer, and main financial beneficiary of the unlawful commercial sex venture. He recruited the minors through social media networks. He took pictures of the minors and caused those pictures to be posted in online advertisements for their sexual services on “backpage.com.” He transported the minors to various hotels and motels in the Bay Area to facilitate their prostitution dates with adult customers. He provided condoms for the minors to use during their prostitution dates and collected money from the minors after their dates. He also admitted that he made a recording of one of the minors engaging in sexual activity during a prostitution date in Sunnyvale and gave methamphetamine to some of the minors to entice them to continue working for him. He specifically told the minors to conceal their true ages.
On April 7, 2016, a federal grand jury indicted Guizar-Cuellar charging him with one count of conspiracy to commit sex trafficking of children, in violation of 18 U.S.C. § 371; three counts of sex trafficking of children, in violation of 18 U.S.C. § 1591(a)(1) and (b) as to each minor victim; and one count of sexual exploitation of children, in violation of 18 U.S.C. § 2251(a) and (e). Guizar-Cuellar pleaded guilty to all counts charged in the indictment.
Guizar-Cuellar is currently in federal custody awaiting sentencing. Judge Freeman scheduled his sentencing hearing for October 22, 2019. The maximum statutory penalty for each violation of 18 U.S.C. § 1591 is life in prison with a mandatory minimum sentence of 10 years. The maximum statutory penalty for child exploitation is 30 years, with a mandatory minimum of 15 years in prison. The maximum prison term for the conspiracy charge is five years in prison. Restitution is mandatory to all victims of sex trafficking. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Marissa Harris is prosecuting the case with the assistance of Tong Zhang. The prosecution is the result of an investigation by the FBI, the San Jose Police Department, and the Santa Clara County District Attorney’s Office Bureau of Investigation, with assistance from the Santa Clara County Human Trafficking Task Force.
Jury Convicts KC Man of Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was convicted by a federal trial jury today of illegally possessing a firearm.
Dionandre Ganter, 30, was found guilty of being a felon in possession of a firearm and of receiving a firearm while under indictment. Ganter has been detained in federal custody without bond since his arrest.
Evidence introduced during the trial indicated that Ganter was in possession of a loaded Smith and Wesson .40-caliber pistol on March 22, 2017. Ganter, a convicted felon, received that firearm while under indictment for tampering and resisting arrest in Jackson County, Mo.
At 2:55 a.m. on March 22, 2017, Kansas City, Mo., police officers responded to a reported shooting at the intersection of Van Brunt Boulevard and Anderson Avenue. An officer saw Ganter, who was not wearing a shirt and had his right wrist bandaged, leaving the area. The officer saw Ganter place a handgun in a flowerpot on the northwest corner of the intersection.
Ganter was detained for further investigation and the firearm was retrieved from the flowerpot.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Ganter has two prior felony convictions for domestic battery and a prior felony conviction for obstruction of legal process.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for approximately 30 minutes before returning the guilty verdict to U.S. District Judge Stephen R. Bough, ending a trial that began Monday, May 6, 2019.
Under federal statutes, Ganter is subject to a sentence of up to 15 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther and Special Assistant U.S. Attorney Sean T. Foley. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Joplin Man Indicted for Producing Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., man was indicted by a federal grand jury today for producing child pornography.
William Lee Potts, 21, was charged in an indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment replaces a federal criminal complaint filed against Potts on May 3, 2019.
The federal indictment charges Potts with one count of using a minor to produce child pornography from April 26 to May 1, 2019.
According to an affidavit filed in support of the original criminal complaint, Potts was found in a Joplin motel room with the 16-year-old child victim on May 1, 2019. Investigators searched his cell phone and found sexually explicit images and a video of child pornography.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Joplin, Mo., Police Department, the Waynesville, Mo., Police Department, the FBI, and the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Jamestown Man Sentenced for Being A Felon in Possession of A GunRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Douglas Wood, 39, of Jamestown, NY, who was convicted of being a felon in possession of a firearm, was sentenced to serve 63 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Seth Molisani, who handled the case, stated that on March 6, 2018, the Jamestown Police Department was actively engaged in a narcotics investigation operation. Investigators conducted physical and audio surveillance of the defendant and learned that Wood was in possession of a silver handgun. Investigators maintained surveillance on the defendant and alerted uniformed patrol officers who approached Wood and spoke with him briefly before he attempted to flee. Following a brief struggle, the defendant was restrained and officers recovered a loaded revolver and 14 additional rounds of ammunition.
Wood was previously convicted in 2000, in the Nottoway County Circuit Court, Nottoway, Virginia, of Grand Larceny, Unlawful Possession or Use of a Sawed-Off Shotgun, and Burglary; in 2001, in Chautauqua County Court, of Grand Larceny in the Fourth Degree; in 2004, in Chautauqua County Court, of Grand Larceny in the Fourth Degree; and in 2007, in Chautauqua County Court, of Robbery in the Third Degree. As a result, the defendant is legally prohibited from possessing a firearm.
Today’s sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division, and the Jamestown Police Department, under the direction of Chief Harry Snellings.
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Inmate at FCI-Loretto Indicted for Possession of ContrabandRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., has been indicted by a federal grand jury in Johnstown on a charge of possession of a prohibited object in prison, United States Attorney Scott W. Brady announced today.
The indictment named Bryan Wade Smith, 29.
According to the indictment presented to the court, on October 3, 2018, Smith possessed a quantity of Buprenorphine.
The law provides for a maximum sentence of 20 years in prison and a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Federal Correctional Institution, Special Investigative Staff, conducted the investigation leading to the prosecution of Smith.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Inland Empire Man Pleads Guilty to TARP Homeowner Relief FraudRead the Press Release
RIVERSIDE, California – A Corona man has become the first individual to plead guilty to federal charges for fraudulently obtaining tens of thousands of dollars in mortgage assistance benefits under the portion of the Troubled Asset Relief Program (TARP) intended for homeowners hardest hit by the 2007-09 economic downturn.
Eliseo Delgado Jr., 40, entered a guilty plea on Monday to one felony count of making a false or fraudulent claim against the United States. Delgado made the first known guilty plea by an individual to fraud charges regarding TARP’s mortgage assistance program. United States District Judge Jesus G. Bernal has scheduled an October 28 sentencing hearing, where Delgado faces a statutory maximum sentence of five years in federal prison.
According to court documents, in November 2014, Delgado knowingly submitted a false application for homeowner relief benefits under the Unemployment Mortgage Assistance Program (UMA). UMA was a federally funded program under TARP that was administered in California by the California Housing Finance Authority’s Mortgage Assistance Corporation under the name “Keep Your Home California.” The program was designed to help homeowners by providing temporary mortgage assistance to eligible low-to moderate-income homeowners who became unemployed. Congress passed TARP to stabilize the nation’s financial system during the financial crisis of 2008. In 2010, using TARP money, Congress established the Hardest Hit Fund (HHF), to provide targeted aid to families in states hit hard by the economic and housing market downturn.
Delgado’s November 2014 application for homeowner relief benefits fraudulently stated that Delgado’s income had been reduced because of unemployment. In a “hardship letter” in support of his application for UMA benefits, Delgado wrote, “I have lost my job…I fell behind on my mortgage payments in 01/01/2014, earlier this year due to lack of income.” In fact, from 2009 to 2016, Delgado was self-employed at various businesses he had founded, and at no point was he unemployed. In total, Delgado fraudulently received $52,373 in UMA benefits from January 2015 until June 2016 – 18 months, the maximum length of time permissible under the program, according to court documents.
This case was investigated by the Office of the Special Inspector General for the Troubled Asset Relief Program.
This matter is being prosecuted by Assistant United States Attorney Benjamin Weir of the Riverside Branch Office.
Illegal Alien from Mexico Pleads Guilty and is Sentenced for Identity TheftRead the Press Release
PITTSBURGH, PA – An illegal alien who had been residing in Frederick, MD, pleaded guilty yesterday to Identity Theft, and has been sentenced in federal court to time served, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Elfego Sanchez-Carranza, 23, of Mexico, who has been in federal custody since November 10, 2018. Following service of the sentence of imprisonment, Sanchez-Carranza was remanded to the custody of federal immigration authorities for commencement of deportation proceedings.
According to the information presented to the court, Elfego Sanchez-Carranza used the name and Social Security number of another person to obtain employment with tree-trimming company Pennline, which is headquartered in the Western District of Pennsylvania.
The court was further advised that the defendant was not in the United States legally during the time of his employment with Pennline, and would not have been eligible to obtain employment in his own name during that time period. Defendant worked at Pennline between January and November of 2018, and earned wages at Pennline under the identity of the United States citizen whose name and Social Security number he did not have the authority to use.
Assistant United States Attorney Christy C. Wiegand prosecuted this case on behalf of the government.
United States Attorney Brady commended the U.S. Immigration and Customs Enforcement (ICE)/Homeland Security Investigations (HSI) and the Department of Labor, Office of the Inspector General for the investigation leading to the successful prosecution in this case.
Idaho Man Pleads Guilty to Conspiring to Obstruct Justice in IowaRead the Press Release
An Idaho man who conspired to obstruct justice pled guilty today in federal court in Cedar Rapids. David Emerson Smith, from Pocatello, Idaho, was convicted of one count of conspiracy to obstruct, influence, and impede an official proceeding.
At the plea hearing and in a plea agreement, David Smith admitted that, from June 2017 through 2018, he agreed with his brother, Darrell Smith, to obstruct, influence, and impede Darrell Smith’s federal sentencing hearing in late 2018. While awaiting his sentencing hearing at the Bremer County Jail in June 2017, Darrell Smith told David Smith in a recorded telephone call that one of the victims of his fraud scheme could “make it really hard” for Darrell Smith if she continued to “complain” to the government. Darrell Smith told David Smith it would be “two extra years” if the victim continued her complaint, but Darrell Smith could get the victim some stock shares within a year. At Darrell Smith’s request, David Smith agreed to contact the victim on the telephone and, in February 2018, David Smith sent a letter to the victim at Darrell Smith’s request. The letter indicated Darrell Smith had $40,000 for the victim, in her children’s names, in accounts at an investment company. The letter also reminded the victim she had “$350,000 in tax credits” and two million shares of an energy company available to her. In truth, the “tax credits” and shares lacked any basis in law or fact.
Law enforcement officers discovered the scheme to obstruct justice before Darrell Smith’s sentencing. In October 2018, the court found Darrell Smith stole $2.4 million from his investment clients, including $161,800 from the victim whom David Smith contacted at Darrell Smith’s request. The court also found Darrell Smith had obstructed justice and sentenced him to 175 months in federal prison.
Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. David Smith remains released on bond previously set pending sentencing. David Smith faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Timothy L. Vavricek and was investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2071.
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Hoboken, New Jersey, Man Admits Promoting Voter Bribery SchemeRead the Press Release
NEWARK, N.J. – A Hoboken, New Jersey, man today admitted promoting a voter bribery scheme in two city elections, U.S. Attorney Craig Carpenito announced.
Matthew Calicchio, 28, pleaded guilty before U.S. District Court Judge William J. Martini in Newark federal court to an information charging him with using the mails to promote voter bribery from 2013 to 2015 in municipal elections in Hoboken.
According to documents filed in this case and statements made in court:
In November 2013, Calicchio, Lizaida Camis, Dio Braxton and others – at Frank Raia’s direction – participated in a scheme to pay certain Hoboken voters $50 if those voters applied for and cast mail-in ballots for the November 2013 Hoboken municipal election. Under New Jersey law, registered voters are permitted to cast a ballot by mail. They must complete and submit to their county clerk’s office an Application for Vote by Mail Ballot (VBM Application). The clerk’s office processes the application and sends the applicant a mail-in ballot.
After the mail-in ballots were delivered to the Hoboken voters, Camis and others went to the voters’ residences and, in some cases, instructed the voters to vote for a rent control referendum that Raia supported. Camis and others promised the voters that they would be paid $50 for casting their mail-in ballots and told them that they could pick up their checks after the election at Raia’s office in Hoboken. Raia instructed Calicchio, Camis, and Braxton that if the ballots did not come back open, the voters would not get paid. Braxton, Camis and others then checked the ballots to ensure that the voters had voted for the correct slate of candidates, including for Raia, and that they had voted for the referendum that was favored by Raia. Calicchio and others mailed certain of the completed ballots to the Hudson County Clerk’s Office. After the election, the voters received $50 checks from an entity associated with Raia.
In November 2015, Calicchio and Willie Rojas agreed to pay certain Hoboken voters $50 if those voters applied for and cast mail-in ballots in the November 2015 Hoboken municipal election in favor of a certain candidate for City Council. The candidate told Calicchio that the candidate wanted to win at all costs, and the candidate further indicated that everyone who voted by mail would get paid. Willie Rojas provided voters with VBM Applications, told the voters that they would get paid $50 for casting mail-in ballots, and then delivered the completed VBM Applications to the Hudson County Clerk’s office. After the mail-in ballots were delivered to the voters, Rojas went to the voters’ residences to collect the mail-in ballots. Calicchio and Rojas then checked the ballots to ensure that they had been cast for their candidate, and Calicchio signed an affidavit for each ballot falsely stating that he had assisted the voters in completing their ballots. After the election, the candidate handed Calicchio an envelope with $50 checks, and Calicchio passed the envelope to Rojas, who gave the checks to the voters.
The count to which Calicchio pleaded guilty is punishable by a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 12, 2019.
Camis previously pleaded guilty to her role in the scheme and is awaiting sentencing. Braxton and Raia were previously indicted and Rojas was previously charged by complaint. The charges against them are merely accusations, and they are presumed innocent unless and until proven guilty.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division.
Defense counsel: Michael P. Koribanics Esq., Clifton, New Jersey
Harrison County man indicted on firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Timothy Allen Crowe, of Bridgeport, West Virginia, was indicted by a federal grand today on a firearms charge, United States Attorney Bill Powell announced.
Crowe, age 56, was indicted on one count of “False Statement in Connection with the Acquisition of a Firearm.” Crowe, having been previously convicted of domestic battery, is accused of lying about his previous charges when trying to purchase a 9mm pistol in April 2018 in Marion County.
Crowe faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Guatemalan National Sentenced with Illegal Re-entryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JORGE AGUILAR-PEREZ, age 25, a citizen of Guatemala, was sentenced yesterday after previously pleading guilty to a one-count Bill of Information for illegally re-entering the United States in violation of Title 8, United States Code, Section 1326(a).
According to the Bill of Information, JORGE AGUILAR-PEREZ was found in the United States on or about December 20, 2018, after having been previously removed therefrom on or about May 25, 2006.
JORGE AGUILAR-PEREZ was sentenced to be imprisoned for a total term of 6 months and a $100.00 special assessment.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Greg & Missey Smith Honored for Their Foundation's Crime Prevention, Safety Awareness EffortsRead the Press Release
U.S. Attorney Tim Garrison presents the annual Crystal Kipper & Ali Kemp Award to Missey and Greg SmithKANSAS CITY, Mo. – Tim Garrison, United States Attorney for the Western District of Missouri, presented the annual Crystal Kipper & Ali Kemp Memorial Award today to Greg and Missey Smith, founders of the Kelsey Smith Foundation.
“Kelsey Smith should have celebrated her 30th birthday last Friday,” said Garrison. “Tragically, she was abducted and murdered a few days after graduating from high school in 2007. Her parents, Greg and Missey, have honored her memory and inspired us all by promoting public policies that can save lives. They have devoted themselves to educating people across the country about crime prevention and safety awareness.”
Greg and Missey Smith started the foundation, also known as Kelsey’s Army, after Kelsey was abducted from a local department store on June 2, 2007. Surveillance video showed Kelsey leaving the store after making a purchase and being abducted when she walked to her car. The effort to find Kelsey grew so large the volunteers became known as “Kelsey’s Army.”
Four days after Kelsey’s abduction, Verizon Wireless agreed to hand over the approximate location of Kelsey’s cellphone. Her body was found less than an hour later in Grandview, Mo. Her killer pleaded guilty and was sentenced to life in prison without the possibility of parole.
As a result of that experience, Greg and Missey Smith began advocating to change the law to require phone companies to provide cellphone location data to law enforcement agencies in an emergency. First passed in Kansas in 2009 and later in Missouri, versions of the bill have now been signed into law in 24 states.
The Smiths also have lobbied for the Kelsey Smith Act, a proposed federal law that has been introduced in both the U.S. Senate and U.S. House of Representatives. The Kelsey Smith Act provides law enforcement with a way to quickly ascertain the location of a cell phone if a person is kidnapped or if a missing person is at risk of death or serious physical harm.
The Kelsey Smith Foundation also provides seminars on such topics as safety awareness, an overview for parents, and programs for the law enforcement community.
Missey Smith was one of 12 people and programs honored by the Department of Justice at the annual National Crime Victims’ Service Awards Ceremony in Washington, D.C., on April 12. She received the Ronald Reagan Public Policy Award, which honors those whose leadership, vision and innovation have led to significant changes in public policy and practice that benefit crime victims.
The Crystal Kipper & Ali Kemp Memorial Award
This is the 16th year for the award to be presented in memory of Crystal Kipper and Ali Kemp, two young women who were both fatal victims of tragic crimes. Crystal Kipper was an 18-year-old Gladstone, Mo., resident who was murdered after her car broke down on Interstate 29, just north of Platte City, on Feb. 24, 1997. Ali Kemp was a 19-year-old Blue Valley North High School graduate who was murdered on June 18, 2002, while she worked at the Foxborough neighborhood swimming pool in Leawood, Kan.
The Crystal Kipper & Ali Kemp Memorial Award is presented by the U.S. Attorney’s Office each year to recognize the outstanding work of an individual or organization in recognition of a valued contribution to preventing and responding to the exploitation of children.
Georgia Investment Representative Pleads Guilty to Stealing over $1.4 Million from Elderly Brentwood WomanRead the Press Release
NASHVILLE, Tenn. - May 7, 2019 – Jay Costa Kelter, 49, of Alpharetta, Georgia pleaded guilty today in U.S. District Court, to wire fraud and securities fraud, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
According documents filed with the court, between March 2014 and August 2016, Kelter embezzled over $1.4 million from an elderly client who lives in Brentwood, Tennessee. As part of his scheme, Kelter convinced the victim to move her investments from a private investment company to a discount brokerage firm. Kelter used his access to the woman’s accounts to periodically sell securities held in those accounts to pay for transfers to his own pass-through company. On one occasion, Kelter impersonated the victim while confirming a trade in her accounts.
Kelter did not divulge ownership of the pass through company when confronted by the victim, but later admitted that he directed the withdrawals from the accounts to his company. Kelter used portions of the stolen funds to purchase luxury cars, custom jewelry, and vacations, and to repay losses owed to other investment clients.
Kelter faces a maximum sentence of 20 years in prison and a maximum fine of $5,000,000, when he is sentenced on August 28, 2019.
This case was investigated by the Federal Bureau of Investigation and the U.S. Securities and Exchange Commission. Assistant U.S. Attorney Stephanie N. Toussaint and U.S. Department of Justice Trial Attorney Andrew R. Tyler are prosecuting the case.
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Former U.S. Fish and Wildlife Service employee admits to possessing child pornographyRead the Press Release
BILLINGS – Shawn Thomas Conrad, a former U.S. Fish and Wildlife Service employee, admitted during a hearing today to possessing child pornography last year, U.S. Attorney Kurt Alme said.
Conrad, 48, of Billings, pleaded guilty to one count of possession of child porn. Conrad faces a maximum 10 years in prison, a $250,000 fine and five years to life of supervised release.
U.S. District Judge Susan P. Watters presided at the hearing and continued Conrad’s release. Sentencing is set for Sept. 6.
In court documents filed in the case, an investigation of Conrad for a child pornography crime began in early August 2018 by the Billings Police Department, which is a member of the Montana Internet Crimes Against Children Task Force. Conrad was employed at the time by the USFWS. Based on the same underlying investigation, Conrad’s supervisor went to Conrad’s home on Aug. 4, 2018 and seized an agency vehicle. Conrad said his personal hard drive was in the vehicle and asked for the hard drive. The supervisor did not return it. Conrad asked his supervisor again that evening for his hard drive.
The USFWS obtained a search warrant for the hard drive, which was examined. The BPD also served a search warrant at Conrad’s residence and seized a laptop computer, which was examined. Both the hard drive and laptop contained child porn images of children engaged in sexually explicit conduct.
Assistant U.S. Attorney Cyndee Peterson is prosecuting the case, which was investigated by the Montana Internet Crimes Against Children Task Force, FBI, BPD and USFWS.
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Former Penn National Horse Trainer Sentenced to 27 Months in Prison for Misbranding Prescription Drugs on Race DayRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that former Penn National horse trainer Murray Rojas, age 53, of Grantville, Pennsylvania, was sentenced on May 6, 2019, to 27 months’ imprisonment on each of her 14 felony convictions for misbranding prescription drugs on race day and conspiracy. The sentences were ordered to run concurrent to each other. Rojas was also sentenced to serve 2 years of supervised release and to pay a $5,000 fine.
According to United States Attorney David J. Freed, Rojas was convicted by a federal jury on June 30, 2017, of 14 felony counts of misbranding prescription drugs on race day and conspiracy. The crimes involved Rojas directing veterinarians to administer drugs to her horses on race day in violation of track rules and state law. The conspiracy took place between 2002 and 2014, and involved 58 races. Rojas conspired with three veterinarians to have the drugs dispensed and administered to horses on the day they were entered to race.
As part of the conspiracy the veterinarians attempted to conceal this conduct by backdating invoices for the sale and administration of drugs to the horses on race day, as well as the submission of fraudulent veterinarian treatment reports to the Pennsylvania Horse Racing Commission.
The United States Attorney’s Office prosecuted several other individuals as part of this investigation in federal and state court, including:
- Danny Robertson, the official clocker, charged with wire fraud, sentenced to one year probation and ordered to pay a $2,500 fine;
- Craig Lytel, a racing official, charged with wire fraud, sentenced to four months in prison and ordered to pay a $1,000 fine;
- David Wells, owner and trainer, charged with rigging a publicly exhibited contest, sentenced on February 23, 2015, to three months’ imprisonment;
- Patricia Rogers, trainer, charged with rigging a publicly exhibited contest, received an ARD in Dauphin County Court of Common Pleas;
- Samuel Webb, trainer, charged with rigging a publicly exhibited contest, received an ARD in Dauphin County Court of Common Pleas;
- Renée Nodine, veterinarian, charged with misbranding and conspiracy, awaiting sentencing;
- Kevin Brophy, veterinarian, charged with misbranding and conspiracy, awaiting sentencing;
- Fernando Motta, veterinarian, charged with misbranding and conspiracy, awaiting sentencing; and
- Christopher Korte, veterinarian charged with misbranding and conspiracy, awaiting sentencing.
Judge Rambo ordered Rojas to report to a federal prison to be designated by the Bureau of Prisons on June 3, 2019. A decision whether Rojas will be allowed to remain on bail pending an appeal is under advisement by the court.
The case was investigated by the by the Federal Bureau of Investigation, the Pennsylvania Department of Agriculture’s Horse Racing Commission and the Food and Drug Administration, Office of Criminal Investigations. Assistant United States Attorney William A. Behe prosecuted the case.
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Former Ocean County Chiropractor Sentenced to Five Years in Prison for Income Tax Evasion and Failure to File Report of Russian Bank AccountRead the Press Release
TRENTON, N.J. – A former chiropractor with offices in Lakewood, New Jersey, was sentenced today to 60 months in prison for evading income taxes totaling more than half a million dollars from 2012 through 2015 and failing to report a Russian bank account, to which he wired more than $1.5 million, U.S. Attorney Craig Carpenito announced.
Carlo Amato, 57, of Beachwood, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp to one count of tax evasion and one count of failure to file a report of foreign financial account (FBAR) while violating another law of the United States and as part of a pattern of illegal activity involving more than $100,000 in a 12-month period. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From 2012 through 2015, Amato operated a chiropractic office in Lakewood through two entities: Chiropractic Care Consultants Inc. and Accident Recovery Physical Therapy. He deposited, or caused to be deposited, checks for chiropractic services into accounts held in the names of his minor children. Amato knew that these checks were taxable as income, but he did not disclose the payments to his accountant, nor did he report them on his tax returns. Amato also failed to report as taxable income certain additional funds that were deposited into Chiropractic Care’s and Accident Recovery’s business bank accounts. For example, Amato reported $0 in taxable income and $0 in tax due on his 2014 income tax return. His taxable income for 2014 was, in fact, $561,258, and Amato admitted that the tax due and owing to the IRS for 2014 was $197,036. Amato admitted that he also evaded more than $300,000 in taxes for the tax years 2012, 2013, and 2015.
Amato, a U.S. citizen, admitted that in 2014, he had an account at UniCredit Bank in Russia. He admitted that he wired more than $1.5 million to Russian bank accounts, including the UniCredit Bank account, and that he knew that he was obligated to report any foreign bank account with an aggregate value of more than $10,000. Amato admitted that he nonetheless failed to file a report of foreign account, commonly known as an FBAR, for the year 2014. Amato also admitted that the funds he failed to report were the product of a fraudulent scheme in which Amato overbilled at least six insurance companies by more than $1 million by billing for services that were never rendered. Amato previously pleaded guilty in Ocean County Superior Court to first degree financial facilitation of criminal activity for money laundering of funds from the overbilling scheme.
In addition to the prison term, Judge Shipp sentenced Amato to three years of supervised release.
Under the terms of his plea agreement, Amato will file amended tax returns and make full restitution for the years 2012 through 2015 and file accurate FBARs for the years 2012 through 2017.
U.S. Attorney Carpenito credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s sentencing. U.S. Attorney Carpenito thanked the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, and the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the Criminal Division in Trenton.
Defense counsel: Thomas R. Ashley Esq., Newark
Former Dracut Nurse Pleads Guilty to Tampering with Liquid MorphineRead the Press Release
BOSTON – A former nurse pleaded guilty in federal court in Boston today to diverting liquid morphine intended for hospice patients at a Lowell nursing home.
Michael Langlois, 49, of Dracut, pleaded guilty to one count of tampering with a consumer product and one count of acquiring a controlled substance by deception and subterfuge. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Aug. 6, 2019.
On Nov. 16, 2016, Langlois, then a registered nurse, tampered with bottles of liquid morphine that doctors had prescribed for two elderly hospice patients under his care at a Lowell nursing home. In each instance, Langlois took the liquid morphine, a schedule II narcotic used to treat pain, for his own use and then replaced it with saline or Benadryl in an attempt to cover up his crime. As a result his conduct, the patients in Langlois’s care received a less potent dose of the painkiller than they had been prescribed.
On or about April 3, 2017, Mr. Langlois diverted for his own use liquid morphine from a bottle prescribed to an elderly hospice patient under his care at a Melrose nursing home. To conceal his wrongful conduct, Mr. Langlois falsely represented in the medical file of one of his patients, and in the nursing home’s Medication Administration Record, that the liquid morphine for that patient was pure, when that was not in fact the case.
The charge of tampering with a consumer product provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of acquiring a controlled substance provides for sentence no greater than four years in prison, one year of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; and Commissioner Monica Bharel, M.D., M.P.H., of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorney Patrick Callahan of Lelling’s Healthcare Fraud Unit is prosecuting the case.
Federal Prosecutor Recognized with the Outstanding Safety and Security AwardRead the Press Release
United States Attorney Trent Shores announced today that Assistant U.S. Attorney Ryan Roberts was awarded the Outstanding Safety and Security Award for his dedication to prosecuting violent crime in Oklahoma.
The award was part of the Public Service Recognition Awards for 2019, hosted by the Oklahoma Federal Executive Board. Roberts was one of six final nominees for the award from across the State of Oklahoma.
“Assistant U.S. Attorney Ryan Roberts is a talented and dedicated federal prosecutor,' said U.S. Attorney Shores. "He approaches his job as a public servant with great humility and selflessness. This recognition was well-deserved and hard-earned. The U.S. Attorney’s Office is lucky to have him on our team.”
In 2018, Roberts charged 77 federal criminal defendants with crimes involving guns and violence. His tenacity and leadership in the courtroom led to 39 guilty pleas and multiple convictions during two contested jury trials in 2018. The remainder of defendants have pleaded guilty in 2019 or their cases are continuing in federal court.
“This award reflects the commitment of an entire team of professionals,” said Assistant U.S. Attorney Ryan Roberts. “I was honored today to represent the hard work from police officers, agents, and the staff here at the U.S. Attorney’s Office. It is truly a team effort that led to these convictions.”
Roberts’ numerous prosecutions directly contributed the Justice Department’s violent crime reduction initiative, Project Safe Neighborhoods, which was reinvigorated in October 2017. The initiative focuses on reducing gun crime and prosecuting violent offenders, often with multiple felony convictions. To support the initiative, the United States Attorney’s Office for the Northern District of Oklahoma increased its prosecutions by more than 200 per cent, when compared to 2017, and focused on strengthening partnerships with local, state, tribal and federal law enforcement partners. This corresponded with a drop in murder and other violent crime in Tulsa. Violent crime in east Tulsa decreased significantly. Aggravated assaults decreased by 25 per cent, robberies by 12 per cent, and rapes by 30 per cent. Moreover, Tulsa’s violent crime statistics in 2018 reflected four-year lows throughout Tulsa in homicides, aggravated assaults, robberies, commercial and residential burglaries, and larcenies.
Project Safe Neighborhoods is the nationwide federal initiative to disrupt gun violence strategically and comprehensively, using all available enforcement and prosecutive tools. The initiative involves a partnership of federal, state, and local authorities, uniting their efforts and leveraging existing and new resources. The U.S. Attorney’s Office and its partners tailor their efforts to meet their own district’s unique needs, helping ensure the safety of communities in the Northern District of Oklahoma.
Federal Judge Convicts Mason County Man of Carjacking and Firearms OffenseRead the Press Release
HUNTINGTON, W.Va. – A Mason County man who threatened two employees of the Putnam Public Service District with a machinegun and stole their company truck last year in Teays Valley was convicted today after a one-day bench trial of multiple federal offenses. Justin Michael Wilson, 20, was convicted of carjacking and using, carrying, and brandishing a machinegun during and in relation to a crime of violence. Wilson also previously pled guilty prior to trial to unlawful possession of a machinegun and possession of an unregistered machinegun. Stuart commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and multiple agencies who responded to the crimes including the Mason County Sheriff’s Department, the Jackson County Sheriff’s Department, the Kanawha County Sheriff’s Department, the Putnam County Sheriff’s Department, the Hurricane Police Department, and the West Virginia State Police.
“There’s no place for carjackers in West Virginia. That’s why Wilson is facing a mandatory 30 years in prison with no parole in the federal system,” said United States Attorney Mike Stuart. “Wilson’s violent, criminal acts put many lives in danger. I want to thank the law enforcement officers who acted heroically to bring Wilson into custody and Assistant United States Attorneys Joe Adams and Stephanie Taylor for their excellent work in this case.”
On January 11, 2018, Wilson drove a vehicle he had stolen earlier in the day in Jackson County to the Liberty Square Shopping Plaza in Teays Valley. While in route to the shopping plaza, Wilson acquired a machinegun and engaged deputies in Kanawha County in a chase, eventually driving off-road and jumping his vehicle over railroad tracks to get away. When he arrived at the shopping plaza, Wilson approached two employees of the Putnam Public Service District eating lunch in their company truck. Wilson brandished the machinegun, demanded the men transfer items from the stolen vehicle to the PSD truck, and stole the truck.
A West Virginia State Police Trooper and Deputies with the Putnam County Sheriff’s Department responding to calls at the shopping plaza for assistance immediately saw Wilson fleeing in the truck. Wilson then entered Interstate 64 headed westbound and led the responding units on another high speed chase. During the pursuit, Wilson pointed the machinegun out of the truck at the Trooper, ran vehicles off the road, crossed the median at a designated emergency vehicle crossing, traveled westbound in the eastbound lanes, exited the interstate by traveling the wrong way up the entrance ramp at Hurricane, and eventually crashed the truck which was destroyed by fire. Wilson was pulled from the burning truck by the Trooper and placed under arrest.
Wilson will be sentenced on August 12, 2019, and faces sentences of up to 15 years in federal prison for the carjacking conviction and up to 10 years in federal prison each for illegally possessing a machinegun and possessing an unregistered machinegun. Wilson also faces a mandatory 30 year sentence for using, carrying, and brandishing a machinegun during and in relation to the carjacking.
Assistant United States Attorneys Joseph F. Adams and Stephanie S. Taylor handled the prosecution. United States District Judge Robert C. Chambers presided over the trial.
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FBI Wanted Fugitive Apprehended in TulsaRead the Press Release
United States Attorney Trent Shores today announced the apprehension of a fugitive on the FBI’s Wanted List who was charged in a 2014 federal indictment for alleged drug and gang conspiracy.
The Tulsa Police Department’s Special Investigations Division arrested Rodney Roy Parker, 47, on Monday in Tulsa. Parker was a fugitive for nearly five years.
Law enforcement originally issued an arrest warrant for Parker on Aug. 13, 2014. He was wanted on federal charges related to the FBI and Tulsa Police Department’s drug investigations titled “Operation Battlefield” and “Battlefield Aftermath”. The resulting indictment alleged that the Hoover Crips distributed $10 million worth of cocaine from Mexican cartels, murdered at least one witness, and had a vast network of co-conspirators.
“Justice never sleeps. Neither does the Tulsa Police Department nor the FBI. Rodney Parker learned that firsthand. You can try to run, but we will find you,” said U.S. Attorney Shores. “The tenacity of Detective Jesse McNeal, the Tulsa Police Department’s Special Investigation Division, and the FBI’s Tulsa Resident Office are to be commended. Thanks to their diligence, Parker will now answer for his alleged crimes in a court of law.”
“We could not be more proud of Detective McNeal,” said Tulsa Police Chief Chuck Jordan. “We are glad that this final arrest will bring Battlefield to its conclusion. We appreciate the collaboration with our federal partners that resulted in over 50 arrests in this significant drug case.”
Acting Special Agent in Charge, Melissa Godbold, FBI Oklahoma City Division stated, "The arrest of Rodney Parker is a testament to our law enforcement partnerships and the countless hours dedicated to bringing Mr. Parker to justice. The FBI is extremely proud to be a part of the investigative work that resulted in removing another dangerous criminal from the streets of Tulsa."
Parker is charged in the indictment with conspiracy to possess with intent to distribute, distribution and to manufacture 280 grams of “crack” cocaine, intent to distribute 5 kilograms or more of cocaine, and intent to distribute 100 kilograms or more of marijuana. Parker is also charged with multiple counts of using a communication facility in the commission of a drug trafficking felony.
Parker is currently in the custody of the U.S. Marshals Service. He faces a potential maximum sentence of life imprisonment. He is scheduled to be arraigned in federal court Tuesday at 2 pm.
“Operation Battlefield” and “Battlefield Aftermath” were large-scale law enforcement operations that started in 2011 targeting “crack” cocaine distribution locations in Tulsa. The FBI, Tulsa Police Department, Broken Arrow Police Department, Drug Enforcement Administration, and Bureau of Alcohol Tobacco, Firearms and Explosives conducted the investigations, which spanned four states and culminated in 2014 with 51 individuals indicted for drug conspiracy. Assistant U.S. Attorney Robert T. Raley is prosecuting the case.
El Dorado Springs Woman, New Jersey Man Indicted for Producing Child PornographyRead the Press Release
SPRINGFIELD, Mo. – An El Dorado Springs, Mo., woman and a North Plainfield, New Jersey, man were indicted by a federal grand jury today for producing child pornography.
Amanda Errin Hunt, 39, and Daniel Thomas Baggott, 36, were charged in a four-count indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment replaces a federal criminal complaint that was filed on April 11, 2019. Hunt and Baggott remain in federal custody.
The federal indictment charges Hunt and Baggott with one count each of using a child victim to produce child pornography from Aug. 5, 2017, to April 9, 2019. The indictment also charges each of the defendants with one count of using a cell phone to induce the child victim to engage in illegal sexual activity.
According to an affidavit filed in support of the original criminal complaint, the investigation began when Facebook initiated a CyberTip with the National Center for Missing and Exploited Children on April 7, 2019. Facebook reported that Hunt and Baggott exchanged images of child pornography through Facebook Messenger. Investigators also discovered sexually explicit messages, along with shared images of child pornography, between Hunt, Baggott, and the 15-year-old victim. Hunt told investigators that Baggott was her boyfriend.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cybercrime Task Force, and the New Jersey Internet Crimes Against Children Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Department of Justice Issues Guidance on False Claims Act Matters and Updates Justice ManualRead the Press Release
The Civil Division today announced the release of formal guidance to the Department of Justice’s False Claims Act litigators. The False Claims Act provides important remedies for fraud committed against the United States. The guidance announced today explains the manner in which the Department of Justice awards credit to defendants who cooperate with the Department during a False Claims Act investigation. The formal policy, included as of today in the Justice Manual Section 4-4.112, identifies the type of cooperation eligible for credit.
“The Department of Justice has taken important steps to incentivize companies to voluntarily disclose misconduct and cooperate with our investigations; enforcement of the False Claims Act is no exception,” Assistant Attorney General Jody Hunt said. “False Claims Act defendants may merit a more favorable resolution by providing meaningful assistance to the Department of Justice – from voluntary disclosure, which is the most valuable form of cooperation, to various other efforts, including the sharing of information gleaned from an internal investigation and taking remedial steps through new or improved compliance programs.”
Under the policy, cooperation credit in False Claims Act cases may be earned by voluntarily disclosing misconduct unknown to the government, cooperating in an ongoing investigation, or undertaking remedial measures in response to a violation. Even if the government already has initiated an investigation, for example, a company may receive credit for making a voluntary self-disclosure of other misconduct outside the scope of the government’s existing investigation that is unknown to the government. Similarly, a company may earn credit by preserving relevant documents and information beyond existing business practices or legal requirements, identifying individuals who are aware of relevant information or conduct, and facilitating review and evaluation of data or information that requires access to special or proprietary technologies.
Under the policy, the Department of Justice will take into account corrective action that a company has taken in response to a False Claims Act violation. Such remedial measures may include undertaking a thorough analysis of the root cause of the misconduct, appropriately disciplining or replacing those responsible for the misconduct, accepting responsibility for the violation and implementing or improving compliance programs to prevent a recurrence.
Most frequently, cooperation credit will take the form of a reduction in the damages multiplier and civil penalties. If appropriate, the Department may also notify a relevant agency about the company’s voluntary disclosure, cooperation, or remediation so that the agency can take those actions into account in deciding how to apply administrative remedies. And the Department may publicly acknowledge the company’s cooperation.
For the full policy, click here.
Defendant Pleads Guilty in New Case Associated with Online Romance Money Laundering ScamRead the Press Release
COLUMBUS, Ohio – A second case has been charged in the Southern District of Ohio related to an online romance money laundering scam.
Eric Y. Banahene, 36, of Columbus, Ohio, offered a guilty plea in U.S. District Court today for conspiring to commit money laundering and concealment money laundering (each punishable by up to 20 years in prison), as well as transactional money laundering (punishable by up to 10 years in prison).
Banahene admitted that he conspired with others to launder the proceeds of online romance scams and agreed to pay approximately $629,000 in restitution.
Six of eight Central Ohio defendants originally charged on Valentine’s Day last year have also offered guilty pleas in U.S. District Court. Two of the defendants remain fugitives.
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, Cincinnati Field Office, Tommy D. Coke, Inspector in Charge, U.S. Postal Inspection Service, Pittsburgh Division, and Angie Salazar, Acting Special Agent in Charge, Homeland Security Investigations (HSI) announced the pleas offered today before Magistrate Judge Norah McCann King.
Those originally charged in the conspiracy include: Kwabena M. Bonsu, Kwasi A. Oppong, Kwame Ansah, John Y. Amoah, Samuel Antwi, King Faisal Hamidu, Nkosiyoxoxo Msuthu and Cynthia Appiagyei.
Ansah and Antwi are at-large.
According to court documents, individuals committing fraud created several profiles on online dating sites. They then contacted men and women throughout the United States, Canada, and other countries with whom they cultivated a sense of affection, and often, romance.
After establishing relationships, perpetrators of the romance scams requested money, typically for investment or need-based reasons and provided account information and directions for where money should be sent. In part, these accounts were controlled by the defendants. The funds were not used for the investment or need-based reasons provided.
Defendants laundered the funds from the scheme, using companies and bank accounts in their control. In furtherance of the scheme, the co-conspirators created several companies, some of which were shell companies, to help attempt to hide the true nature of their proceeds. They withdrew the proceeds in cash, wired funds to their coconspirators and to other accounts, and used the fraud proceeds to purchase salvaged vehicles sold online. The cars were commonly exported to Ghana.
The purchase and shipment of vehicles helped conceal the fact that members of the conspiracy were sending proceeds of romance fraud overseas. Some members of the conspiracy found people in Ghana who wanted to purchase vehicles. The people in Ghana who wanted the cars would pay the perpetrators of the romance fraud scheme in Ghana. Under this method, money did not have to be wired overseas, which would have risked attracting the scrutiny of financial institutions.
Banahene admitted to conspiring with Bonsu and others to launder more than $629,031.
Defendants originally charged in the conspiracy admitted that they collectively laundered more than $3.3 million in proceeds from romance scams.
“These defendants helped conceal the wrongdoing of those who preyed on men and women from throughout the U.S., Canada, and abroad through the ploy of intimacy when the bottom line is all they really wanted was their money,” stated William Cheung, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “This case demonstrates how the U.S. Attorney’s Office and federal law enforcement will band together to help put an end to criminal behavior of those who prey on individuals for their personal financial gain. IRS criminal investigators will continue to use their financial expertise to identify and trace laundered funds in these types of fraud schemes.”
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, U.S. Postal Inspection Service and HSI, as well as Assistant United States Attorney Peter K. Glenn-Applegate, who is prosecuting the case.
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Coral Springs Man Sentenced to More Than Four Years in Federal Prison for Check Counterfeiting SchemeRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Allen Griffin (23, Coral Springs) to four years and nine months in federal prison for his role in a check counterfeiting scheme. The court also ordered Griffin to pay nearly $80,000 in restitution to financial institutions. Griffin had pleaded guilty on February 21, 2019, to seven counts of bank fraud and one count of conspiracy to commit bank fraud.
According to court documents, during the summer of 2018, Griffin and his co-conspirators created counterfeit checks and obtained access to individual bank accounts into which they deposited the counterfeit checks. Griffin and his co-conspirators then withdrew the funds from those accounts before the fraud was detected. Griffin and his co-conspirators deposited counterfeit checks totaling more than $370,000 into Orlando-area banks.
On August 3, 2018, Griffin was arrested at a hotel in Orlando. He had blank check stock paper in his car and hotel room, a printer and laptop that he had used to create counterfeit checks, computerized images of signatures used on the counterfeit checks, ATM cards that had been used in the check fraud scheme, and an ATM receipt from one of the fraudulent transactions. Griffin was also captured on bank surveillance video depositing counterfeit checks and making withdrawals from accounts where the counterfeit checks had recently been deposited.
Griffin’s co-defendants, Wesley Anderson and Christopher Stewart, have both pleaded guilty and are scheduled to be sentenced in July 2019.
This case was investigated by the United States Secret Service, with assistance from the Orange County Sherriff’s Office. It is being prosecuted by Assistant United States Attorney Dana E. Hill.
Convicted Felon Sentenced for Shooting at Federal AgentsRead the Press Release
VICTORIA, Texas – A 30-year-old Cuero resident has been ordered to federal prison following his conviction of assault on a federal agent and related firearms charges, announced U.S. Attorney Ryan K. Patrick. Joseph Brent Benoit pleaded guilty Jan. 7, 2019.
Today, Senior U.S. District Judge John D. Rainey sentenced Benoit to 60 months for the assault on a federal agent and being a felon in possession of a firearm. He was also ordered to serve a 120-month term of imprisonment for discharging a firearm in relation to a crime of violence which must be served consecutively to the other sentence imposed.
On supervised release when he committed this offense, Judge Rainey further ordered Benoit also to serve 30 months on the revocation on that term, 10 of which was to be served consecutively to the new sentence.
The total 190-month prison term will be immediately followed by three years of supervised release.
On Aug. 8, 2017, deputies with the U.S. Marshals Service (USMS) were attempting to execute a felony arrest warrant for Benoit. When officers observed Benoit driving a black Chevrolet truck in Dewitt County, they requested the assistance of local law enforcement in stopping the vehicle. At that time, Benoit briefly stopped but then fled in the vehicle. Authorities pursued him until coming to a stop at his residence.
Benoit exited the truck and ran to the residence while carrying an assault rifle. Shortly thereafter, agents heard a single gunshot and immediately retreated to a position of safety and cover outside the residence. Law enforcement verbally attempted to get Benoit to exit the location, but were unsuccessful.
After a multi-hour stand-off, law enforcement officers were able to gain entry into the residence and located Benoit hiding in a crawl space under the floor that was accessed by a hidden door in the floor of the residence. At the time Benoit was arrested and taken into custody, USMS deputies observed the assault rifle laying on the ground next to him - an AR-15 style, .223 caliber semi-automatic rifle. During a search of Benoit, officers discovered 37 rounds of .223 caliber ammunition in his pants pockets. Benoit had previously been convicted of a felony and is prohibited by federal law from possessing firearms and ammunition.
After authorities secured the scene, they discovered a round hole in the glass on the front door that was consistent in size with a .223 caliber bullet. Based on the damage surrounding the hole, it appeared the bullet was fired from inside the residence. Federal agents were able to locate a fired .223 caliber casing inside the residence and the fired .223 caliber bullet outside in a wooden railing along the approach to the front door.
Benoit has been and will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility.
USMS, the Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI, Cuero Police Department and Texas Rangers conducted the investigation with the assistance of the Corpus Christi Police Department Bomb Squad, Dewitt County Sheriff’s Office, Victoria Police Department, Texas Department of Public Safety, and the Victoria County Sheriff’s Office. Assistant U.S. Attorneys Patti Booth and Lance Watt are prosecuting the case.
Company Controller Pleads Guilty to Fraud Charges for Failing to Report $2.8 Million He Embezzled from EmployerRead the Press Release
LOS ANGELES – A controller for a commercial printing company has pleaded guilty to tax and mail fraud charges for embezzling $2.8 million from his employer and failing to report the stolen funds as income to the Internal Revenue Service.
Sean Edin Talaee, 62, of Glendale, pleaded guilty on Monday to one count of mail fraud and one count of subscribing to a false income tax return. United States District Judge Otis D. Wright II has scheduled an August 19 sentencing hearing, where Talaee will face a statutory maximum sentence of 23 years in federal prison.
According to his plea agreement, between October 2015 and June 2018, Talaee worked as the controller overseeing the accounting and tax payments of Printograph, Inc., a Burbank-based commercial printing company that does business as GotPrint.com. During this time period, Printograph made a series of periodic estimated tax payments, which were based on the company’s expected gross income, deductions, and credits for each year. To enable these estimated tax payments, Talaee brought company checks to Printograph’s president and sole owner – who had signing authority for the company’s bank account – for her signature prior to their submission to the IRS.
On at least eight separate occasions, Talaee obtained company checks from Printograph’s president but instead inserted his own taxpayer information when filling out the IRS voucher forms that accompanied the estimated tax payments. By using his own information – and not the company’s – Talaee was able to claim the estimated tax payments for himself and caused the IRS to credit the payments to his own personal account, thereby embezzling the funds from Printograph and effectively laundering the embezzled proceeds through the IRS.
During the course of the scheme, Talaee embezzled $2.8 million from his employer and falsely claimed estimated tax payments in that amount for the years 2015, 2016, and 2017, according to court documents. These estimated tax payments allowed Talaee to receive a total of $2,778,994 in fraudulent tax refunds for these years, court papers state. Talaee failed to report the embezzled money as income for these tax years, causing a total tax loss of $740,085.
This case was investigated by IRS Criminal Investigation and the Federal Bureau of Investigation.
This matter is being prosecuted by Assistant United States Attorney Alexander Wyman of the Major Frauds Section.
Cobleskill Man Sentenced to 15 Years for Child Pornography OffensesRead the Press Release
ALBANY, NEW YORK – Jason M. VanBuren, age 44, of Cobleskill, New York, was sentenced today to serve 180 months in prison for receiving child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
At sentencing, Senior United States District Judge Gary L. Sharpe concluded that VanBuren also engaged in a pattern of activity involving the sexual abuse of a female child between the ages of 12 and 15, which Judge Sharpe was permitted to take into account in sentencing the defendant.
Judge Sharpe also sentenced VanBuren to a life term of supervised release, to begin following his term of imprisonment. VanBuren will be required to register as a sex offender following his release from prison.
VanBuren pled guilty on January 2, 2019 to an indictment charging two counts of receiving child pornography.
As part of his plea, VanBuren admitted using two smartphones equipped with instant messaging and file-sharing applications to download child pornography via the Internet. Overall, VanBuren downloaded and retained over 1,000 images and videos depicting child pornography.
This case was investigated by the FBI, the Cobleskill Police Department, and the New York State Police Computer Crimes Unit, and was prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.
This case was prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Chickasha Bank Robber ArrestedRead the Press Release
OKLAHOMA CITY – DWAYNE EDWARD RASMUSSEN, 65, has been charged with robbing the Community Bank of Oklahoma in Chickasha, announced First Assistant U.S. Attorney Robert J. Troester.
According to an affidavit in support of a criminal complaint, a man entered the Chickasha branch of Community Bank of Oklahoma at approximately 9:15 a.m. on April 30, 2019, and told a bank employee: "Give me all your 50’s and 100’s." After the employee complied, he allegedly said: "That’s not enough. Give me all your money." He is alleged to have taken virtually all the money from the three tellers’ drawers, for a total reported loss of $10,474. The affidavit states that while he did this, he brandished what appeared to be a pistol with a green grip. When he entered the bank, the affidavit explains, he placed a large sponge at the base of the inside door of the "mantrap" at the bank’s entrance so the door would not close.
Based on video surveillance from the bank and a church across the street, eyewitness accounts, and interviews of his acquaintances, FBI agents determined Rasmussen was the primary suspect. He was arrested on May 6 in downtown Oklahoma City.
Rasmussen made his initial appearance during the afternoon of May 6 before U.S. Magistrate Judge Gary M. Purcell. A preliminary and detention hearing will take place before Judge Purcell on May 9.
If found guilty of bank robbery, Rasmussen faces a maximum potential penalty of twenty years in prison, three years of supervised release, a fine of $250,000, and mandatory restitution.
This case is a result of an investigation by the FBI Oklahoma City Division and the Chickasha Police Department. Assistant U.S. Attorneys Wilson McGarry and Mary E. Walters are prosecuting the case.
The public is reminded that this charge is merely an allegation and that Rasmussen is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for more information.
Chester County Sheriff, Lieutenant, and Chief Deputy Indicted on Federal ChargesRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Chester County Sheriff George Alexander “Big A” Underwood, 55, of Chester; Chester County Sheriff’s Office Lieutenant Johnny Ricardo Neal, Jr., 39, of Lancaster; and Chester County Sheriff’s Office Chief Deputy Robert Andrew Sprouse, 44, of Chester, were indicted in federal court on an eight-count indictment related to a conspiracy to cover up an unlawful arrest and an excessive use of force.
“Today, we announce the worst kind of charges: Allegations of wrongdoing on the part of law enforcement,” said U.S. Attorney Lydon. “Those who swear to protect and uphold the law, while at the same time using their positions of power to hide their own violations of the law, will be held accountable. The American system of government depends on those in power obeying the rules and ensuring that all individuals are treated fairly and equally.”
Count One of the Indictment alleges that on November 20, 2018, law enforcement personnel from Chester County Sheriff’s Office, including Underwood, Neal, and Sprouse, responded to a car accident and fleeing suspect in Fort Lawn. A resident living nearby, identified in the Indictment as K.S., used his cellphone to live-stream the law enforcement activity. Underwood asked K.S. to stay on his porch, but K.S. remained in his yard. Underwood returned 25 minutes later, directing K.S. to retreat to his porch.
Underwood then followed K.S. onto his porch, lunged out to grab and restrain K.S. by his torso, and demanded that K.S. turn over his cellphone. After restraining K.S., Underwood stated that he was attempting to place K.S. under arrest. Neal placed K.S. in handcuffs and escorted him to a vehicle for transport to the detention center. In doing so, Neal knocked K.S. to the ground while K.S. was restrained in handcuffs, injuring K.S.’s head and elbow. Neal then directed the transport office to place a “hold” on K.S., causing him to be held in jail for three nights.
Underwood and Sprouse learned that K.S. had live-streamed the video from his cellphone onto the Internet. Underwood and Sprouse then announced that a radio had been lost during the seizure of K.S. Sprouse and Neal then directed subordinate deputies to draft a search warrant that would allow them to enter K.S’s home. Sprouse entered K.S.’s home without a warrant, searching for the cellphone. He directed a subordinate deputy to dial a phone number in an effort to identify the target phone by making it ring. Sprouse ultimately removed a cellphone from K.S’s home without consent. Sprouse then delivered that phone to a Sheriff’s deputy in charge of evidence collection.
In January 2019, Sprouse and Neal created an incident report containing false statements about K.S.’s seizure, and Underwood and Sprouse created and signed a disciplinary report shifting the blame to the deputy in charge of evidence collection for taking the phone following the seizure of K.S. Also in January 2019, Underwood and Sprouse made false statements to the Federal Bureau of Investigation (FBI) concerning the seizure of K.S. and the cellphone.
This Count carries a maximum penalty of five years in federal prison and a fine of $250,000.
Count Two alleges that Underwood violated K.S.’s rights while acting under color of law by seizing K.S. without probable cause to believe K.S. committed a crime, causing him to be detained in jail for three nights. This Count carries a maximum penalty of one year in federal prison.
Count Three alleges that Neal violated K.S.’s rights while acting under color of law by knocking K.S. to the ground while he was handcuffed, resulting in bodily injury to K.S. This Count carries a maximum penalty of 10 years in federal prison.
Count Four alleges that Underwood and Sprouse tampered with the cellphone, attempting to alter, destroy, or conceal it with the intent to impair its integrity or availability for use in the federal case involving the deprivation of K.S.’s rights. This Count carries a maximum penalty of 20 years in federal prison and a fine of $250,000.
Count Five alleges that Neal and Sprouse falsified a record with the intent to impede a federal investigation by creating a false incident report indicating that K.S. repeatedly left his yard to enter the roadway and that K.S. directed profane language toward them – when in fact K.S. did neither – and caused that report to go to the FBI. This Count carries a maximum penalty of 20 years in federal prison and a fine of $250,000.
Count Six alleges that Underwood and Sprouse falsified a record with the intent to impede a federal investigation by creating and signing a disciplinary report shifting blame to the deputy in charge of evidence collection for taking the cellphone following K.S.’s seizure, and caused that report to go to the FBI. This Count carries a maximum penalty of 20 years in federal prison and a fine of $250,000.
Count Seven alleges that Underwood made a false statement to the FBI on May 3, 2019, representing that he first viewed K.S.’s video recording about a week after the incident, when in fact he viewed the recording on the date of the incident. This Count carries a maximum penalty of five years in federal prison and a fine of $250,000.
Count Eight alleges that Sprouse made a false statement to the FBI on January 8, 2019, representing that he did not know how a cellphone was removed from K.S.’s home, when in fact he removed the phone. This Count carries a maximum penalty of five years in federal prison and a fine of $250,000.
“We will never shy away from bringing these types of cases,” continued U.S. Attorney Lydon. “We will work day in and day out to make sure our citizens in Chester and across South Carolina can have confidence in their public servants, their government, and certainly their police officers.”
“It is paramount that law enforcement maintain the trust of the public which it serves,” said Jody Norris, Special Agent in Charge of the FBI. “These charges are a reminder that nobody is above the law. We will continue to aggressively investigate allegations of law enforcement misconduct, and we are grateful to the South Carolina Law Enforcement Division for their assistance in this case.”
Underwood, Neal, and Sprouse will make their initial appearances at 10:00 a.m. on Tuesday, May 21, at the Matthew J. Perry Federal Courthouse in Columbia.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Alyssa Leigh Richardson and William Camden Lewis of the Columbia office.
U.S. Attorney Lydon stated that all charges in the Indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
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20190507_-_indictment.pdfBurnham Man Sentenced to 37 Months for Illegal Possession of a FirearmRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced Matthew Johnson, 39, of Burnham, Maine, was sentenced today in U.S. District Court by Judge Lance E. Walker to 37 months in prison and three years of supervised release for being an unlawful user of heroin and bath salts in possession of a firearm. The defendant pleaded guilty on June 21, 2018.
Court records reveal on April 20, 2017, officers from the Westbrook and Scarborough Police Departments stopped the defendant’s vehicle which had reportedly fled the scene of an accident. A search of the vehicle revealed controlled substances, drug paraphernalia and a locked safe. Inside the locked safe, officers found a fully loaded .357 Magnum revolver, bath salts and other drugs. The defendant admitted he was an addict. The ensuing investigation revealed that the defendant had purchase the revolver in Bangor and was an unlawful user of heroin and bath salts.
In imposing the sentence, Judge Walker noted the “deadly and destructive” influence of the combination of illegal drug use and firearm possession within our society.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Maine Drug Enforcement Agency as well as the Westbrook and Scarborough Police Departments.
Boston Man Pleads Guilty to Business Loan SchemeRead the Press Release
BOSTON – A Boston man pleaded guilty yesterday in federal court in Boston in connection with making false statements on a loan application.
Alexander Grinis, 47, of Jamaica Plain, pleaded guilty to one count of false statements on loan applications. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Aug. 7, 2019. In June 2018, Grinis was arrested and charged with co-defendant Igor Mosieev, 59, of Newton, who pleaded guilty on May 3, 2019.
Grinis was the manager of Eastern Bank in Auburndale. Among his responsibilities were assisting customers with opening and closing accounts and applying for loans and lines of credit. In approximately February 2015, Grinis assisted Mosieev in opening a checking and savings account at Eastern Bank with the license and Social Security card of another individual, without the knowledge or consent of that person. Later that year, Grinis assisted Mosieev in adding the individual to a business account in the name of TFC Enterprises, LLC. Thereafter, Moiseev forged the individual’s name on applications for two purported business loans. On each loan application, Grinis falsely certified that he had complied with all bank procedures and, as a result, the loans were approved. The proceeds of the two loans were subsequently distributed to the business checking account and Moiseev forged the individual’s name on checks and withdrew money from the account to pay for his own personal expenses. In addition, Moiseev, with Grinis’ assistance, caused proceeds from the business checking account to be wire transferred to Russia, Canada, and elsewhere overseas using the individual’s name. Both loans defaulted and were never paid back to Eastern Bank, resulting in a loss of over $90,000.
The charge of false statements provides for a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of up to $250,000, or twice the gross gain/loss whichever is greater. 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 Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. Assistant U.S. Attorney Laura J. Kaplan of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
Bethlehem Man Found Guilty of Entering United States Illegally for Fourth TimeRead the Press Release
EASTON, PA – U.S. Attorney William M. McSwain announced that Martin Castro-Molina, a/k/a “Jose Noe Galsano-Castellano”, 42, of Bethlehem, PA was found guilty by a federal jury of one count of reentering the United States after deportation. He was removed from the United States on three prior occasions between 2008 and 2017, before being found unlawfully in the United States on or about August 24, 2018. At the time of his arrest, the defendant gave multiple fictitious names to authorities.
“The defendant in this case clearly has no respect for the laws of this country,” said U.S. Attorney McSwain. “After being removed on three previous occasions, Castro-Molina decided yet again to snub our immigration system by entering the United States illegally. I am glad that the jury in this case agreed and held him responsible for his actions.”
“The brave men and women of ICE contribute to making our communities safer by arresting criminal aliens like Martin Castro-Molina,” said Simona L. Flores, Field Office Director for ICE Enforcement and Removal Operations (ERO) Philadelphia. “We will ensure that aliens who may pose a threat to our communities are not released onto the streets to potentially reoffend and harm individuals living within our communities.”
The case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement, and is being prosecuted by Assistant United States Attorneys Meaghan Flannery and Jose Arteaga.
210 Months Prison Sentence for Oregon Sex Offender Caught Luring, Threatening Young Columbus Girl OnlineRead the Press Release
COLUMBUS – A federal judge handed down a 210-month sentence today to an Oregon man guilty of Coercion and Enticement of a Minor, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Colby Ray Cochran, 24, of Warrenton, Oregon, is a registered sex offender in his home state, having been convicted in July 2016 of the state felony charge of Luring a Minor. Mr. Colby was on probation, and was active on the Oregon sex offender registry, at the time he committed the federal sex crime in Georgia. The Honorable Clay Land presided over Tuesday’s sentencing in Columbus federal court, additionally sentencing Mr. Cochran to 15 years of supervised release. There is no parole in the federal system.
Mr. Cochran admitted in his plea agreement to first interacting with the 15-year-old female victim “Jane Doe” on Instagram, a popular social media application. Jane Doe, who was living on Fort Benning, a military installation in Columbus, first became active on Instagram and Snapchat in August 2017, and shortly thereafter made contact with Mr. Cochran on Instagram, under the username “utopic_ecchi” with a profile picture of a distinctive Japanese female anime character. They initially engaged in typical friendly small talk, but as their online relationship progressed, Mr. Cochran began asking Jane Doe for risqué photos of herself. Jane Doe told Mr. Cochran she was 15 years old and had a boyfriend. Mr. Cochran stated he was 19 years old. On October 17, 2017 he asked her to send nude photos on Snapchat, under the username “happycannon”. Mr. Cochran also sent Jane Doe several photos of his genitalia. Jane Doe soon regretted her actions, exited Snapchat, and blocked him.
At this point, Mr. Cochran began to threaten Jane Doe on Instagram, demanding more nude photos. She refused. Mr. Cochran threatened to spread her photos “all over” and share with her boyfriend. She replied that if he wanted to remain friends, he had to delete the photos. He warned her that he had an app that saved all the photos and again threatened to send them to her boyfriend. Mr. Cochran then proposed an arrangement where he would delete the photos if she agreed to continue to exchange nude photos occasionally. Jane Doe feigned interest in the arrangement while unsuccessfully trying to convince Mr. Cochran to delete the photos she had sent. Around this time, Jane Doe’s mother walked into a room and found her child crying. After being assured she wasn’t in trouble, Jane Doe told her mother what happened and described how she had been threatened by someone she met online. The mother, posing as Jane Doe’s father, confronted Mr. Cochran on Snapchat, stating the police had been contacted. The mother reported the incident to Fort Benning law enforcement, who turned the investigation over to the Federal Bureau of Investigation (FBI). Following an investigation, Mr. Cochran was located and taken into custody.
“This case paints a picture of what many parents fear most in today’s world—their children being lured by online predators into making terrible choices that threaten their safety and their future,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “I want to commend the victim’s mother, who was attentive to her child’s distress and immediately notified authorities. I also want to recognize the excellent investigative work of the FBI. These agents quickly and methodically tracked down a predator and stopped him from potentially harming other children. Protecting our children in today’s technological environment is a difficult task, but our Office will do our part and hold child predators accountable for their criminal actions.”
“The FBI will always make it a top priority to protect the most vulnerable in our society, our children,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “It is clear from this sentencing that Cochran’s actions will not be tolerated by our justice system, and hopefully, it will send a message to anyone with similar perverse intent.”
The case was investigated by the FBI and the Clatsop County (Oregon) Sheriff’s Office. Assistant U.S. Attorney Crawford Seals prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
6 May 2019
York County Man Sentenced to 96 Months’ in Prison for Child Exploitation OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert T. Donelon, age 56, of York County, was sentenced on May 3, 2019, by Chief United States District Court Judge Christopher C. Conner to 96 months’ imprisonment followed by 10 years of supervised release for child exploitation offenses. Chief Judge Conner also ordered Donelon to pay $1,000 to each of the seven identifiable victims.
According to United States Attorney David J. Freed, Donelon pled guilty to the receipt and distribution of images of child pornography between December 2016 and January 2018, in York County.
The case was investigated by the West York Borough Police Department and the Federal Bureau of Investigation. Assistant United States Attorney James T. Clancy prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Wheeling man admits to distributing methamphetamineRead the Press Release
WHEELING, WEST VIRGINIA – Randy Lee Donahue, Jr., of Wheeling, West Virginia, has admitted to distributing methamphetamine, United States Attorney Bill Powell announced.
Donahue, age 37, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Methamphetamine within 1,000 Feet of a Protected Location.” Donahue admitted to distributing methamphetamine from an apartment located at 97 16th Street in Wheeling, within 1,000 feet of Wheeling Central Catholic High School in November 2018.
Donahue faces not less than one and up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives; the West Virginia State Police; and the Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Washington, D.C. man sentenced for firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Roger Anthony Williams, of Washington, D.C., was sentenced today to 84 months incarceration for firearms charges, United States Attorney Bill Powell announced.
Williams, age 38, pled guilty to two counts of “Unlawful Possession of a Firearm” in January 2019. Williams, having previously been convicted of second-degree murder in Prince George’s County, Maryland, admitted to having a 9mm pistol in October 2017 in Berkeley County. He also admitted to having .45 caliber pistol and .45 caliber ammunition in September 2018 in the District of Columbia.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
United States Attorney Announces $17 Million Healthcare Fraud SettlementRead the Press Release
LARGEST HEALTHCARE FRAUD SETTLEMENT IN WEST VIRGINIA HISTORY
CHARLESTON, W.Va. – United States Attorney Mike Stuart, along with Special Agent in Charge Maureen R. Dixon, United States Department of Health and Human Services – Office of Inspector General (HHS-OIG), Acting Assistant Special Agent in Charge Justin Schoeman, Drug Enforcement Administration (DEA), Cabinet Secretary Bill J. Crouch, West Virginia Department of Health and Human Resources, and Director Mike Malone, West Virginia Medicaid Fraud Control Unit (MFCU), announced that his office has settled healthcare fraud claims against Acadia Healthcare Company, Inc. (“Acadia”). Pursuant to the settlement agreement, Acadia will pay $17 million to resolve allegations of a billing scheme that defrauded Medicaid of $8.5 million. The settlement represents the largest healthcare fraud settlement in the history of West Virginia and is twice the actual loss from the scheme. Of the $17 million settlement, nearly $2.2 million will be paid directly to the State of West Virginia.
“$17 million – the largest healthcare fraud settlement in the history of West Virginia,” said United States Attorney Mike Stuart. “$8.5 million in Medicaid fraud means $8.5 million in fraud to the taxpayers. Nearly 600,000 West Virginians rely on Medicaid for the payment of critical services. Medicaid fraud is not a victimless crime. I am proud of the work of my office and that of our partners to ensure the end of this multi-million dollar scheme. In this case, every dime in false billings was doubled for a total settlement that represents twice the harm caused. This is a strong message and a massive penalty. The message is clear – if you are cheating the system and we find you, you’ll not only pay for the damage done but far more. This is a message of deterrence to other would-be fraudsters.”
Acadia, acting through its subsidiary, CRC Health, L.L.C. (“CRC”), operates seven drug treatment centers in West Virginia. These treatment centers are located in Charleston, Huntington, Parkersburg, Beckley, Williamson, Clarksburg, and Wheeling. The West Virginia Centers provide outpatient drug treatment, including the administration of Methadone and the prescribing of Suboxone and Subutex. Each of Acadia’s West Virginia treatment centers is certified by the Centers for Medicare and Medicaid Services (“CMS”) to perform uncomplicated “waived” laboratory testing only. Waived laboratory tests are simple tests with a low risk for an incorrect result. “Non-waived” laboratory testing, in contrast, consists of moderate and high complexity testing. Laboratories that perform non-waived tests are required to have a significantly higher level of certification than the certifications held by the Acadia treatment centers.
From January 1, 2012 to July 31, 2018, Acadia’s treatment centers sent urine and blood samples to an outside laboratory, San Diego Reference Laboratory (the “San Diego Lab”) for all moderate and high complexity drug testing. The San Diego Lab performed the testing and invoiced Acadia’s treatment centers for the services, and did so at the request of the treatment centers. Acadia’s treatment centers paid the San Diego Lab directly. However, Acadia’s West Virginia treatment centers then billed West Virginia Medicaid for the urine and blood testing performed by the San Diego Lab, as though the testing had been performed by the treatment centers. In the claims for reimbursement submitted to Medicaid, Acadia’s treatment centers represented that they had performed the moderate and/or high complexity laboratory services. Medicaid, induced by the claims submitted by Acadia’s treatment centers, paid the treatment centers a substantially higher amount than the San Diego Lab charged to actually perform the testing. Medicaid regulations and policies specifically prohibited Acadia’s treatment centers from seeking reimbursement for moderate and complex urine and blood testing which they were not certified to perform, and did not, in fact, perform.
Medicaid paid Acadia’s treatment centers $8,500,000 as a result of these moderate and complex urine and blood testing claims, resulting in a loss of $2,181,100 to the State of West Virginia and $6,318,900 to the United States. The Medicaid program is primarily administered by the states, but jointly financed by federal and state funds – funds ultimately originating from taxpayers. As a result of the $17 million settlement, which represents twice the actual loss suffered by Medicaid, both the state and federal programs will be made whole.
As part of this settlement, CRC Health and Acadia Healthcare entered into a five-year corporate integrity agreement (CIA) with HHS-OIG. The CIA requires CRC and Acadia to maintain a compliance program, implement a risk assessment program, and hire an Independent Review Organization to review Medicaid claims.
Medicaid fraud cost states billions of dollars every year, diverting funds that could otherwise be used for legitimate health care services. In 2018, improper payments alone—which include things like payment for non-covered services or for services that were billed but not provided—totaled more than $40 billion nationally according to the Government Accountability Office.
“Fraudulent billing by these Acadia/CRC drug treatment clinics, as contended by the government, limits the State’s ability to provide desperately needed addiction treatment services,” said Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Services Region including West Virginia. “We will continue working with the U.S. Attorney and other law enforcement partners to protect government health programs, taxpayers, and importantly people who depend on these funds for vitally needed treatment.”
“The West Virginia Department of Health and Human Resources, through its Medicaid Fraud Control Unit, continues to protect the integrity of healthcare programs and the citizens of West Virginia,” said Bill J. Crouch, Cabinet Secretary of the West Virginia Department of Health and Human Resources. “I am proud of DHHR’s Medicaid Fraud Control Unit under the leadership of Director Michael Malone and its work with the United States Attorney’s Office Southern District in combatting healthcare fraud and the opioid crisis and as a member of the innovative ARREST Task Force.”
“The Drug Enforcement Administration routinely works in partnership with other agencies to fight the opioid crisis,” said Justin Schoeman, Acting Assistant Special Agent in-Charge of DEA’s Charleston District Office, which covers West Virginia. “This settlement is just one example of the great results from our collaboration and hopefully it will have a positive effect on the people of West Virginia,” Schoeman added.
The investigation was conducted by HHS-OIG, DEA and MFCU, members of the United States Attorney’s Healthcare Fraud Abuse, Recovery and Response Team (ARREST), an innovative approach linking civil and criminal enforcement efforts together in a comprehensive attack on the opioid epidemic and healthcare fraud. Assistant United States Attorneys Alan McGonigal and Jennifer Mankins handled the matter on behalf of the United States. The settlement agreement can be found here: https://www.justice.gov/usao-sdwv/press-release/file/1160101/dl?inline=.
United States Attorney Mike Stuart announced the formation of ARREST in February 2019. This settlement is the first significant result since its inception. All health care related cases in the Southern District of West Virginia, whether they are the subject of criminal or civil investigation or enforcement, are directed through ARREST. Included within the purview of the team are the Opioid Fraud and Abuse Detection Unit, Affirmative Civil Enforcement Unit, Appalachian Regional Prescription Opioid Task Force, Medicare and Medicaid Fraud, and Asset Forfeiture efforts related to all healthcare matters.
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Tyler County man admits to firearms violationRead the Press Release
WHEELING, WEST VIRGINIA – Michael John Maisey, of Sistersville, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Maisey, age 49, pled guilty to one count of “Unlawful Possession of a Firearm.” Maisey, being prohibited from possessing a firearm, admitted to having a 9mm caliber pistol in July 2018 in Tyler County.
Maisey faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Martinsville Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Two Defendants Sentenced in Federal Court for Drug OffensesRead the Press Release
HUNTINGTON, W.Va. – Two defendants involved in drug offenses last year in Huntington were sentenced today in federal court, announced United States Attorney Mike Stuart. Marquan Charles Williams, 27, was sentenced to 67 months in federal prison after previously pleading guilty to possession with intent to distribute heroin. In a separate prosecution, Krista N. Ramey, 25, was sentenced to 24 months in federal prison after previously pleading guilty to distributing methamphetamine. Stuart commended the investigative efforts of the FBI Drug Task Force, the Cabell County Sheriff’s Department and the Huntington Police Department.
“If you are a drug dealer -- regardless of whether it’s fentanyl, heroin, methamphetamine, or any other illegal drug -- and we find you, we will prosecute you and put you behind bars for as long as possible,” said United States Attorney Mike Stuart.
In the Williams prosecution, officers with the Huntington Police Department were conducting surveillance at the Greyhound bus station in Huntington on May 23, 2018, when they observed Williams and another individual arrive on a bus from Detroit. Officers continued to conduct surveillance and observed Williams and the other individual enter a residence on West 7th Avenue in Huntington. The other individual was then seen leaving the residence and entering a vehicle which was stopped by officers. During the traffic stop, officers recovered a bag containing over 100 grams of fentanyl.
Officers subsequently executed a search warrant at the West 7th Avenue residence. When officers entered, they located Williams in the kitchen processing and bagging an additional quantity of fentanyl which Williams admitted that he intended to sell. Williams further admitted as part of his plea agreement that he directed the other individual to take the fentanyl seized during the traffic stop to a local motel to store it for later distribution.
In the Ramey prosecution, a confidential informant contacted Ramey on August 17, 2018, to arrange the purchase of methamphetamine. The informant then traveled to Ramey’s residence on South High Street in Huntington where Ramey distributed methamphetamine to the informant. As part of her plea, Ramey admitted that she also distributed methamphetamine to the informant on August 20, 2018, and that investigators seized four firearms during a search of her residence on August 23, 2018.
Assistant United States Attorney Joseph F. Adams handled the prosecutions. The sentences were imposed by United States District Judge Robert C. Chambers.
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Two Brooklyn Men Sentenced to Nine Years’ and 15 Years, Respectively, for Kidnapping, Extortion and Torture of VictimRead the Press Release
Earlier today, in federal court in Brooklyn, Michael Crumble was sentenced by United States District Judge Allyne R. Ross to nine years’ imprisonment for kidnapping conspiracy, kidnapping and committing physical violence in furtherance of an extortion relating to the December 2017 abduction, assault and extortion of a victim. On May 3, 2019, co-defendant Ramell Markus was sentenced to 15 years’ imprisonment for his role in the same crimes. The defendants were convicted by a federal jury in May 2018 following a one-week trial.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentences.
“The defendants were seeking cash and drugs when they brutally assaulted the victim, but what they ultimately received as a result of their vicious conduct were lengthy prison sentences,” stated United States Attorney Donoghue. “I commend our FBI and NYPD partners in the New York City Safe Streets Task Force for their outstanding investigative work in this case.”
“The primary mission of the NYPD and our law enforcement partners is to arrest, prosecute, and send away with a meaningful prison sentence anyone who commits violent crime, and instills fear in New Yorkers through their criminal actions,” stated NYPD Commissioner O’Neill. “I want to thank the Eastern District and the investigators from the FBI and NYPD who worked on this case. Their hard work helps ensure that those who engage in serious crimes like kidnapping, extortion and assault will face justice.”
On December 17, 2017, Crumble, Markus, and a co-conspirator kidnapped the victim outside his residence in Queens and forced him into a vehicle. Markus pistol-whipped the victim in a futile attempt to force him to give up narcotics believed to be in the victim’s home. The defendants and their co-conspirator then drove the victim to another location in Brooklyn, and during the next several hours tortured him – smashing a glass into his face and burning his arms with a hot iron – until the drugs and cash were given to them.The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Keith D. Edelman and Lindsay K. Gerdes are in charge of the prosecution.
The Defendants:
MICHAEL CRUMBLE
Age: 35
Residence: Brooklyn, New York,RAMELL MARKUS (also known as “Rah,” “Dollah” and “Smooth”)
Age: 36
Residence: Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-32 (ARR)
Trucker Working for Kansas Company Pleads Guilty to Stealing Load of MeatRead the Press Release
KANSAS CITY, KAN. – A California trucker working for a Kansas freight brokerage pleaded guilty Monday to stealing a load of meat valued at more than $160,000, U.S. Attorney Stephen McAllister said.
Gegham Avetisyan, 37, Valley Village, Calif., pleaded guilty to one count of wire fraud. Avetisyan contracted with a trucking freight brokerage business in Olathe to deliver a load of meat to three locations in California. He faxed documents to the company in which he used the name Robert Ivanov. He picked up the meat at a packing plant in Omaha, but never delivered it.
Sentencing is set for Aug. 12. He faces a sentence of up to 20 years in federal prison and a fine up to $250,000. McAllister commended the FBI and Assistant U.S. Attorney Chris Oakley for their work on the case.