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Wednesday 27 March 2019
Bozeman woman admits using money management service to defraud court-appointed clientsRead the Press Release
MISSOULA – A Bozeman woman who ran a money management service for court-appointed clients unable to manage their own finances on Tuesday admitted embezzling funds from the clients and spending most of the money on gambling debts, U.S. Attorney Kurt Alme said.
Ellen Lorraine Van Ausdol, 77, pleaded guilty to wire fraud and to making and subscribing to a false income tax return. Van Ausdol faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Jeremiah C. Lynch presided. He will recommend Van Ausdol’s plea be accepted by Chief U.S. District Judge Dana L. Christensen, who is hearing the case. Sentencing was set for July 19. Van Ausdol was released.
Prosecution evidence showed that Van Ausdol operated a fiduciary business, called Fiduciary Consulting and Management. The business provided money management services for court-appointed clients, many of whom have mental deficiencies and lacked the ability to manage their own money.
An investigation found that Van Ausdol embezzled from her clients during a six-year period that started in about 2010 and ended in April 2016. Van Ausdol told law enforcement that she used the majority of the money to cover her gambling expenses.
In addition, Van Ausdol’s theft resulted in her owing the IRS additional income tax for the six-year period. In one of the tax counts, Van Ausdol signed a tax return for 2014, omitting the total amount of income from embezzled funds for that year.
The parties have not resolved the total fraud loss or tax loss and will address those issues at sentencing. The prosecution is alleging the fraud loss is $444,000 and the income tax loss is $52,894.
Assistant U.S. Attorney Ryan Weldon prosecuted the case, which was investigated by the IRS and FBI.
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Binghamton Woman Sentenced for Social Security FraudRead the Press Release
BINGHAMTON, NEW YORK – Patricia L. Williams, age 63, of Binghamton, was sentenced today to 5 years of probation for stealing Social Security benefits deposited into her deceased husband’s bank account and for concealing her receipt of those benefits.
The announcement was made by United States Attorney Grant C. Jaquith and John F. Grasso, Special Agent in Charge of the Social Security Administration (SSA) Office of the Inspector General, New York Field Division.
A jury voted to convict Williams following a 4-day trial in October 2018. The evidence demonstrated that the defendant’s husband passed away in 1990, but SSA was never notified of his death. SSA, believing the defendant’s husband was alive, continued to pay monthly benefits until 2013, which Williams withdrew and spent, knowing she was not entitled to the money. From 2008 to 2015, the defendant applied for and received Supplemental Security Income (SSI), concealing that she was taking her deceased husband’s benefits. SSI is a needs-based program, available to elderly, blind, and disabled individuals, that provides money to pay for living expenses.
Senior United States District Judge Thomas J. McAvoy also ordered Williams to pay restitution to the SSA in the amount of $32,581.00.
This case was investigated by the SSA Office of the Inspector General, New York Field Division, and was prosecuted by Special Assistant U.S. Attorney Jason W. White.
Armed Drug Dealer Sentenced to Five Years and a Day in PrisonRead the Press Release
PROVIDENCE – An armed Pawtucket heroin dealer has been sentenced to five years and one day in federal prison, announced United States Attorney Aaron L. Weisman, Pawtucket Police Chief Tina Goncalves, and Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division Brian D. Boyle.
Leoner J. Leonardo, 23, was arrested by Pawtucket Police in July 2017, following a two-month investigation into Leonardo’s drug trafficking activities. The investigation included at least 17 controlled purchases of heroin, ten of which he was charged with, totaling approximately 36.67 grams of heroin.
According to information presented to the Court, on July 11, 2017, Pawtucket Police, with the assistance of members of the Rhode Island DEA Drug Task Force, executed a court-authorized search of Leonardo’s residence. Leonardo was located inside a locked upstairs bedroom. He refused verbal commands to open the door and officers and agents made a forced entry. Leonardo was found next to a mattress on the floor of the bedroom and was arrested. On the mattress, approximately two feet away from Leonardo, was a loaded 25-caliber semi-automatic pistol with an obliterated serial number. The firearm safety lever was off and the hammer was cocked back, ready to fire.
Law enforcement also seized approximately 18.94 grams of heroin from the residence which was packaged or being packaged for distribution and a small amount of cash.
Leonardo pleaded guilty in federal court on June 27, 2018, to conspiracy to distribute heroin, distribution of heroin, possession with intent to distribute heroin, and possession of a firearm in furtherance of drug trafficking. At sentencing, in addition to a term of incarceration of five years and one day, U.S. District Court Chief Judge William E. Smith also ordered Leonardo to serve three years of supervised release upon completion of his prison sentence.
The case was prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
The matter was investigated by the Pawtucket Police Department, with the assistance of members of the Rhode Island DEA Drug Task Force.
The Rhode Island DEA Drug Task Force is comprised of law enforcement personnel from the DEA, Rhode Island State Police, and East Providence, Central Falls, Coventry, Cranston, Newport, North Kingstown, Pawtucket, Providence, South Kingstown, Warwick, West Warwick and Woonsocket Police Departments.
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Antitrust Division Dedicates the Anne K. Bingaman Auditorium & Lecture HallRead the Press Release
Today, the Antitrust Division was honored to dedicate the Anne K. Bingaman Auditorium and Lecture Hall in the Liberty Square Building in Washington, DC. Anne Bingaman was the first woman to lead the Antitrust Division as Assistant Attorney General. She was nominated to the role by President Clinton and confirmed by the Senate on June 16, 1993. She served as Assistant Attorney General from 1993 to 1996.
Former Assistant Attorney General Bingaman was present and offered recollections from her time at the Division. The Honorable Diane P. Wood, Chief Judge of the U.S. Court of Appeals for the Seventh Circuit also shared remarks. The Division also was pleased to welcome other former Antitrust Division officials, including former Assistant Attorney General James Rill.
Included among her many accomplishments, former Assistant Attorney General Bingaman launched the Division’s criminal leniency program as well as the Division’s Paralegal Unit, both of which continue to this day. She also led major civil investigations into Microsoft’s monopolization of PC operating systems and into price fixing by two dozen NASDAQ securities firms.
To recognize Assistant Attorney General Bingaman’s many contributions to the Division, Assistant Attorney General Makan Delrahim chose to dedicate the newly renovated auditorium and lecture hall in the Liberty Square Building in her honor. This state-of-the-art facility is equipped with advanced displays, multimedia conference equipment, and broadcast capabilities. It will allow the Antitrust Division to host lectures; train lawyers, economists, and paralegals; and present valuable programming to advance the Division’s law enforcement and competition advocacy mission.
ABT Gang Member and Another Convicted for Transporting AliensRead the Press Release
CORPUS CHRISTI, Texas – Two members of a smuggling conspiracy have entered guilty pleas to their part in transporting illegal aliens in the trunk of a Ford 500 through the Sarita Border Patrol (BP) Checkpoint, announced U.S. Attorney Ryan K. Patrick.
Cody Michael Matousek, 33, of Texas City, and Guadalupe Levario, 38, of Galveston, admitted they conspired to transport illegal aliens on March 27, 2019. Law enforcement has identified Matousek as an affiliate of the Aryan Brotherhood.
On Feb. 6, 2019, a tow truck driver reported that he had been hired to haul a broken down Ford 500 through the checkpoint from Armstrong to an auto parts store in Kingsville. When picking up the vehicle on the shoulder of Highway 77, the tow truck driver observed a tan medium-sized SUV parked behind the Ford 500. At the checkpoint, the driver told agents he felt suspicious about the vehicle he was hauling because the driver refused to provide the keys.
During the inspection, a BP K-9 alerted to the trunk of the Ford 500. Upon opening the trunk, agents observed two individuals from Brazil who admitted to being illegally present in the United States.
Law enforcement had the driver drop off the Ford 500 in Kingsville to the individual who hired him.
Authorities conducted surveillance at the auto parts store in Kingsville and observed the tan medium-sized SUV. Levario exited the SUV and directed where the truck was to be parked. He then paid the driver, at which time he was placed under arrest. Also taken into custody was Matousek, who was driving the SUV.
Matousek had been the subject of an investigation involved with a human smuggling organization affiliated with the Aryan Brotherhood of Texas (ABT) out of Galveston.
Located inside the SUV, authorities discovered numerous iPhones, a backpack and jackets which the undocumented aliens later identified as their property.
The two Brazilians claimed Matousek picked them up somewhere near Mission and transported them to a stash house. The next day, Matousek picked them up and brought them to a motel where he explained the process for them to be smuggled past the checkpoint. There, they also met Levario who told them he would be the one smuggling them past the checkpoint.
The next morning, Levario transported them in a Ford 500. He stopped at an abandoned house south of the checkpoint and put both Brazilians in the trunk of the Ford 500.
Sentencing has been set for July 3, 2019, before U.S. District Judge Nelva Gonzales Ramos. At that time, Matousek and Levario face up to 10 years imprisonment and a $250,000 maximum possible fine.
Matousek will remain in custody, while Levario was permitted to remain on bond pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations, BP, U.S. Marshals Service and the Kingsville Police Department all assisted in the joint investigation. Assistant U.S. Attorney Sara Popejoy is prosecuting the case.
A New York man sentenced for firearms conspiracy and drug chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Amanze Antoine, of Mt. Vernon, New York, was sentenced today to 120 months incarceration for illegal firearms sales and cocaine distribution, United States Attorney Bill Powell announced.
After a three-day trial in December 2018, a federal jury found Antoine, age 38, guilty of one count of “Conspiracy to Violate Federal Firearms Laws” one count of “Conspiracy to Distribute Cocaine Base,” and one count of “Unlawful Possession of a Firearm.” Antoine recruited a group of individuals in Morgantown, West Virginia and elsewhere to create false documentation to purchase firearms, transported and sold the illegally obtained firearms from West Virginia to New York. He also distributed cocaine in Morgantown in May 2017. Antoine was previously convicted of two crimes in New York, prohibiting him from possessing a firearm.
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 Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Tuesday 26 March 2019
White House announces Presidential Task Force on Protecting Native American Children in the Indian Health Service SystemRead the Press Release
WASHINGTON—President Donald J. Trump today announced the formation of a Presidential Task Force on Protecting Native American Children in the Indian Health Service System.
The task force will examine any systemic problems that may have led to failures of the IHS to protect Native American children. The task force will develop recommended policies, protocols and best practices to protect Native American children and prevent abuse.
“I welcome the creation of this task force. Keeping Native American children safe is a critical government function,” U.S. Attorney Kurt Alme said. “I also hope that our office’s prosecution of Dr. Stanley Weber, a former IHS pediatrician who practiced on the Blackfeet Indian Reservation in Browning, sends a strong message that those who sexually abuse children will be held accountable and that we will seek justice for victims,” Alme said.
Weber was convicted at trial of aggravated sex abuse of a child, attempted aggravated sex abuse of a child and abusive sexual contact of a minor. He was sentenced in January to 220 months in prison. Weber is appealing.
Blackfeet Nation Chairman Timothy F. Davis said, “This task force is charged with a monumental task. It is imperative and crucial all children be protected from assault. Therefore, it is with much anticipation and excitement we look forward to the work the task force will undertake to not only develop policies, protocols and best practices that will insure the safety of our children now and in the future, but also I am especially delighted to learn of the appointment of pediatrician Dr. Caitlin Hall, MD, FAAP, as a subject matter expert with whom I had the privilege of working with at Blackfeet Community Hospital.
“As a tribal leader, and being personally familiar with the crime committed on our Blackfeet Nation, I wholeheartedly welcome this opportunity to interact with the White House Task Force to provide input on addressing and finding solutions to this systemic problem that must be eradicated and as promised, never ever occur again anywhere,” Chairman Davis said.
This task force’s focus is separate and distinguishable from other investigations into the Indian health system. Specifically, the work of the task force will not interfere with: (1) the criminal investigation of one particular pediatrician; (2) a review underway at the Department of Health and Human Services (HHS), including a review by the Department’s Inspector General, which HHS Secretary Azar ordered earlier this year; or (3) a review conducted by an outside, independent contractor retained by the Indian health system.
The task force will be comprised of subject-matter experts from several United States Government agencies, and co-chaired by Joseph Grogan, Assistant to the President of Domestic Policy, and U.S. Attorney Trent Shores, for the Northern District of Oklahoma, and citizen of the Choctaw Nation. The task force will also draw on the expertise of other federal employees and resources and seek perspective an input from tribal leaders and Native American voices.
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White House Announces the Presidential Task Force on Protecting Native American Children in the Indian Health Service SystemRead the Press Release
Today, President Donald J. Trump announced the formation of a Presidential Task Force on Protecting Native American Children in the Indian Health Service System (Task Force). He charged the Task Force with investigating the institutional and systemic breakdown that failed to prevent a predatory pediatrician from sexually assaulting children while acting in his capacity as a doctor in the Indian Health Service. The pediatrician left the agency in 2016 and is now in Federal prison.
This Task Force’s focus is separate and distinguishable from other investigations into the Indian health system. Specifically, the work of the Task Force will not interfere with: (1) the criminal investigation of one particular pediatrician; (2) a review underway at the Department of Health and Human Services (HHS), including a review by the Department’s Inspector General, which HHS Secretary Azar ordered earlier this year; or (3) a review conducted by an outside, independent contractor retained by the Indian health system.
The Task Force will examine any systemic problems that may have failed to prevent this doctor’s actions and led to any failures of the Indian Health Service to protect Native American children. The Task Force will develop recommended policies, protocols, and best practices to protect Native American children and prevent such abuse from ever happening again.
The Task Force will be comprised of subject-matter experts from several United States Government agencies, and co-chaired by Joseph Grogan, Assistant to the President for Domestic Policy, and the Honorable Trent Shores, United States Attorney for the Northern District of Oklahoma and citizen of the Choctaw Nation. The Task Force will also draw on the expertise of other Federal employees and resources and seek perspective and input from tribal leaders and Native American voices.“We applaud the formation of this Task Force which furthers our commitment to protect Native American children in North Dakota from predatory offenders. We are confident the Task Force will identify the changes that are necessary to promote accountability and ensure that our most vulnerable citizens are protected,” said Christopher C. Myers, United States Attorney for the District of North Dakota.
Members of the Presidential Task Force on Protecting Native American Children in the Indian Health Service System:
Joseph Grogan, Assistant to the President for Domestic Policy, Co-Chair
United States Attorney Trent Shores, Co-Chair
Bo Leach, Assistant Special Agent in Charge, Bureau of Indian Affairs, Office of Justice Services
Stephanie Knapp, MSW, LCSW, Child/Adolescent Forensic Interviewer, Federal Bureau of Investigation’s Office for Victims Assistance, Child Victim Services Unit
Shannon Bears Cozzoni, Tribal Liaison and Assistant United States Attorney, United States Attorney’s Office for the Northern District of Oklahoma
Caitlin A. Hall, MD, FAAP, Clinical Director/Pediatrician, Dzilth-na-o-dith-hle Health Center, Indian Health Service
Farnoosh Faezi-Marian, Program Examiner, Office of Management and Budget
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Upshur County man sentenced for his role in a firearms conspiracyRead the Press Release
ELKINS, WEST VIRGINIA – Michael Lough, of Buckhannon, West Virginia, was sentenced today to 60 months incarceration for his role in a firearms theft and sale scheme, United States Attorney Bill Powell announced.
Lough, age 34, pled guilty to one count of “Possession of Stolen Firearm - Aiding and Abetting,” and one count of “Unlawful Possession of Firearm” in January 2018. Lough, being a person prohibited from possessing a firearm, admitted to receiving, possessing, bartering or selling 21 firearms in Upshur County in October 2016.
Lough was also ordered to pay $54,000 in restitution.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives; The Mountain Region Drug & Violent Crime Task Force; the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Upshur County Sheriff’s Office; the Lewis County Sheriff’s Office; the Buckhannon Police Department; and the Weston Police Department investigated.
U.S. District Judge John Preston Bailey presided.U.S. Attorney’s Office and Justice Department Close Religious Land Use Investigation of the City of Pryor Creek Following Zoning Code RevisionsRead the Press Release
U.S. Attorney Trent Shores announced today that due to recent amendments made to the City of Pryor Creek’s zoning code, the Justice Department will close its investigation into whether the city violated the Religious Land Use and Institutionalized Person’s Act of 2000 (RLUIPA) when it rejected Cornerstone Truth of God’s efforts to obtain a special use permit to operate a church there. RLUIPA is a civil rights law that protects against religious discrimination.
The Pryor Creek City Council published the ordinance on March 25. The Justice Department will officially close the investigation in 30 days, when the zoning ordinance takes effect.
“Religious institutions of all faiths should be free from discriminatory zoning actions and ordinances that restrict their ability to expand or establish places of worship. I will work to ensure that is the case in northeastern Oklahoma,” said U.S. Attorney Shores. “In this instance, I appreciate Pryor Creek’s cooperation and willingness to find workable solutions that ensured the protection of the religious rights of the Cornerstone Truth of God Church. When city leaders were made aware that they had violated RLUIPA, they accommodated the church and examined what changes needed to be made to their zoning laws.”
In July 2017, the U.S. Attorney’s Office for the Northern District of Oklahoma, in partnership with the Department of Justice, opened an investigation into Pryor Creek’s zoning laws and whether the city discriminated against the Cornerstone Truth of God Church’s efforts to obtain a special use permit. The investigation centered on how zoning laws treated religious areas of assembly differently compared to secular areas of assembly. Religious groups in America have the constitutional right to use land for religious exercise, free from discriminatory restrictions, and to be treated on equal terms with secular groups.
Shortly after the investigation was opened, the City granted a special use permit to the church. The City also began revising its zoning code so that it treated secular and religious areas of assembly the same. On March 19, the City Council approved revisions to its zoning code, which put secular and religious areas of assembly on equal footing.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. Last year, the Justice Department announced its Place to Worship Initiative, which focusses on RLUIPA’s provisions that protect the rights of religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the U.S. Attorney’s Office for the Northern District of Oklahoma at (918) 382-2700 and ask for Civil Division Assistant U.S. Attorney Marianne Hardcastle. You can also contact the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or on the complaint portal on the Place to Worship Initiative website.
U.S. Attorney Shores Appointed Co-Chair of Presidential Task Force on Protecting Native American Children in the Indian Health Service SystemRead the Press Release
President Donald J. Trump today appointed Trent Shores, United States Attorney for the Northern District of Oklahoma, as a co-chair of a Presidential Task Force formed to address the institutional and systemic breakdown that failed to prevent a predatory pediatrician from sexually assaulting Native American children for years while employed by the Indian Health Service. U.S. Attorney Shores will partner with Joseph Grogan, Assistant to the President for Domestic Policy, to lead the Task Force.
The President announced the formation of a Presidential Task Force on Protecting Native American children in the Indian Health Service System today to examine any systemic problems that may have failed to prevent this doctor’s actions and led to any failures of the Indian Health Service to protect Native American Children. The Task Force will develop recommended policies, protocols, and best practices to protect Native American children and prevent such abuse from ever happening again.
“I appreciate the confidence placed in me by President Trump to help lead this Task Force. We have the opportunity to do good work for a righteous cause. Protecting Native American children who enter the Indian Health Service system is a common sense mission. It’s also one which this Task Force will approach with a great sense of purpose and urgency. I’m thankful for President Trump’s focus on this issue and commitment to finding solutions to prevent these atrocities from happening again. This is about doing the right thing.”
Cherokee Nation Principal Chief Bill John Baker voiced his support for the appointment, “Trent Shores, the United States Attorney for the Northern District of Oklahoma, has a history of working to protect Indian children in Oklahoma and I have confidence in his ability to make safety recommendations as part of this new designated task force.”
Chickasaw Nation Governor Bill Anoatubby stated, “It is heartbreaking and unconscionable that an IHS pediatrician was allowed to prey upon Indian children. We commend and support the Administration and the Department of Justice for initiating this important review of IHS practices so that all proper measures are taken to ensure the protection and safety of all children.”
The Task Force will be comprised of subject-matter experts from several United States Government agencies, and co-chaired by Assistant to the President for Domestic Policy Joseph Grogan and U.S. Attorney Shores, a citizen of the Choctaw Nation. In addition to U.S. Attorney Shores, the Task Force will include two other Oklahomans, Shannon Bears Cozzoni and Bo Leach. Ms. Cozzoni is an Assistant United States Attorney and Tribal Liaison in the Northern District of Oklahoma where she regularly works with tribes to address justice-related issues. Ms. Cozzoni previously served as the First Assistant Attorney General at the Muscogee (Creek) Nation and brings a wealth of experience to the Task Force. Bo Leach is the Assistant Special Agent in Charge of the Oklahoma City Division of the Bureau of Indian Affairs Office of Justice Services. ASAC Leach is a skilled criminal investigator with vast experience in law enforcement Indian Country, including investigating child sexual abuse. He is also a member of the Choctaw Nation.
The Task Force will draw on the expertise of other Federal employees and resources and seek perspective and input from tribal leaders and Native American voices. However, the work of the Task Force will not interfere with: (1) the criminal investigation of one particular pediatrician; (2) a review underway at the Department of Health and Human Services (HHS), including a review by the Department’s Inspector General, which HHS Secretary Azar ordered earlier this year; or (3) a review conducted by an outside, independent contractor retained by the Indian health system.
Members of the Presidential Task Force on Protecting Native American Children in the Indian Health Service System:
Joseph Grogan, Assistant to the President for Domestic Policy, Co-Chair
United States Attorney Trent Shores, Co-Chair
Bo Leach, Assistant Special Agent in Charge, Bureau of Indian Affairs, Office of Justice Services
Stephanie Knapp, MSW, LCSW, Child/Adolescent Forensic Interviewer, Federal Bureau of Investigation’s Office for Victims Assistance, Child Victim Services Unit
Shannon Bears Cozzoni, Tribal Liaison and Assistant United States Attorney, United States Attorney’s Office for the Northern District of Oklahoma
Caitlin A. Hall, MD, FAAP, Clinical Director/Pediatrician, Dzilth-na-o-dith-hle Health Center, Indian Health Service
Farnoosh Faezi-Marian, Program Examiner, Office of Management and Budget
Two Pittsburgh Women Charged in Series of Bank Robberies across Allegheny CountyRead the Press Release
PITTSBURGH, PA – Two residents of Pittsburgh, Pennsylvania have been indicted by a federal grand jury in Pittsburgh on charges related to a series of bank robberies that occurred in West Mifflin, McCandless, Penn Hills and Bloomfield, United States Attorney Scott W. Brady announced today.
The five-count Superseding Indictment names Jasmine Parrish, 29, and Donna Poremski, 43, who had worked together in the home healthcare industry, as defendants.
According to the Superseding Indictment, Parrish and Poremski conspired to rob four (4) different PNC bank locations from January 2018, through November 21, 2018. The PNC banks are located at 452 Clairton Boulevard, 9805 McKnight Road, 206 Rodi Road, and 4761 Liberty Avenue. As alleged, during two of the bank robberies – in West Mifflin and McCandless – the women, who were dressed in disguises, displayed a handgun and forced the employees into the vault. As to the November 21, 2018 attempted bank robbery, in Bloomfield, Parrish is alleged to have worked at the bank prior to the bank robbery and waited in a car while another person attempted to rob the bank.
A total of $97,004.00 was taken from the West Mifflin, McCandless and Penn Hills PNC banks, during these robberies.
As to each of the armed bank robbery counts, the law provides for a maximum total sentence of not more than 25 years in prison, a fine of not more than $250,000, or both. As to each of the unarmed bank robbery counts, the law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Additionally, the law provides for a minimum sentence of not less than five years in prison and up to life, a fine of $250,000, or both, for the conspiracy offense. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, West Mifflin Borough Police Department, the McCandless Police Department, the Penn Hills Police Department and the City of Pittsburgh Police Department conducted the investigation leading to the Superseding Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Lake Charles felons sentenced for unlawful possession of firearmsRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that two Lake Charles felons were sentenced yesterday by U.S. District Judge Donald E. Walter for illegal possession of a firearm.
Lake Charles felon sentenced to 48 months in prison for possessing handgun
Keelan Broussard, 27, of Lake Charles, was sentenced to four years in prison for possessing a handgun. The Calcasieu Combined Anti-Drug Task Force executed a search warrant on May 23, 2018 at Broussard’s home, and found a Taurus .38 Special handgun, ammunition, approximately $2,400 in cash, marijuana and cocaine in Broussard’s bedroom. Broussard is a felon who has been convicted of drug and firearms related charges. Under federal law, convicted felons are not allowed to possess a firearm or ammunition. Broussard admitted that he owned the firearm at his guilty plea in federal court on December 14, 2018.
The ATF and the Calcasieu Combined Anti-drug Task Force conducted the investigation. Assistant U.S. Attorney Dominic Rossetti prosecuted the case.
Lake Charles felon sentenced to 30 months in prison for unlawfully possessing a rifle
Forrest Cecil Coker II, 33, of Lake Charles, was sentenced to 30 months in prison for unlawfully possessing a stolen rifle. Calcasieu Parish Sheriff’s deputies arrived on April 21, 2018 at a home on Laurel Avenue in Calcasieu Parish searching for an individual with pending felony warrants. When officers approached the home, Coker came out to meet them, and stated he needed to step back inside the residence to subdue an aggressive dog. Upon his return, officers received permission to enter and search the residence. During the search, they found a DPMS Model AR-10, .308-caliber rifle that was reported stolen, a small amount of suspected methamphetamine, four suspected Alprazolam pills and two suspected Citalopram pills, along with marijuana pipes, a methamphetamine pipe, marijuana grinders and an electric scale.
Under federal law, Coker is not allowed to possess a firearm or ammunition as a convicted felon. Coker was previously convicted on four separate occasions in the State of Louisiana's 14th Judicial District Court for simple burglary and illegal use of a weapon. He pleaded guilty in federal court on December 17, 2018.
The ATF and the Calcasieu Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Daniel J. McCoy prosecuted the case.
Both cases were prosecuted under the Project Safe Neighborhoods (PSN) program, which is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods 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 reductions in crime.
Two Charged with Conspiring to Possess and Possessing 5 Kilos or More of CocaineRead the Press Release
PITTSBURGH, PA – A Pennsylvania man and a Texas man have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The two-count Indictment named the defendants as Eric Timbers, 42, formerly of Pittsburgh, PA, and Lino Espinoza, 44, formerly of Houston, Texas.
According to the Indictment, from June 2017 to March 21, 2019, Timbers and Espinoza conspired to possess with intent distribute and to distribute five kilograms or more of cocaine. Both defendants are also charged with possession with intent to distribute five kilograms or more of cocaine on March 21, 2019.
The law provides for a minimum total sentence of not less than 10 years and a maximum of life in prison, a fine of not more than $20,000,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brian M. Czarnecki and Senior Deputy Attorney General Katherine Wymard of the Pennsylvania Attorney General Office’s Organized Crime Section are prosecuting this case on behalf of the government.
The Pennsylvania Attorney General’s Office with the assistance of the City of Pittsburgh Bureau of Police and the Drug Enforcement Administration conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Baltimore Drug Traffickers Sentenced to over 9 ½ Years in Federal PrisonRead the Press Release
Baltimore, Maryland – On March 25, 2019, Chief U.S. District Judge James K. Bredar sentenced James Hair, a/k/a “Mook,” age 28, of Baltimore, Maryland, to 117 months in federal prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute at least two kilograms of cocaine.
In another case yesterday, U.S. District Judge Ellen L. Hollander sentenced Stancil McNair, age 22, of Baltimore, Maryland to 10 years in federal prison, followed by five years of supervised release, for conspiracy to distribute heroin, powder cocaine, crack cocaine, and fentanyl.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration – Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“Drug traffickers must know that gun crime will lead to federal time, which has no parole - ever,” said United States Attorney Robert K. Hur. “We will continue to work with our law enforcement partners to remove those who would commit violence from our community.”
According to Hair’s guilty plea, between late 2016 and early 2017, Hair was captured on federal wiretaps discussing drug trafficking with a heroin distributor, who was also a member of the Black Guerilla Family (BGF) gang. On February 5, 2017, the FBI seized a cell phone belonging to an associate of Hair’s. The phone contained text messages in which Hair and his associate discussed a plan to rob and kill Hair’s cocaine supplier. Also on February 5, 2017, Hair was heard on a recorded jail call telling an inmate that he had provided a firearm to a mutual friend of theirs because the friend had gotten into a fight with someone. In early to mid-March 2017, Hair was intercepted on several calls discussing getting revenge for the murder of one of his friends, and retrieving several firearms that the murdered friend had been keeping. Hair admitted that he knew that the conspiracy distributed between two kilograms and 3.5 kilograms of cocaine.
According to McNair’s plea agreement, from at least May 2017 through September 19, 2017, McNair was a manager in a drug trafficking organization (DTO) that operated in and around 1100 North Montford Avenue in Baltimore, distributing heroin, fentanyl, and powder and crack cocaine. As one of the managers, McNair was responsible for managing a portion of the daily supply of narcotics for the organization by providing bags of heroin to other street-level distributors drug shops operated by the DTO and taking custody of the drug proceeds from the distributors. Between May 5 and July 12, 2017, McNair also sold a total of 115 vials of crack cocaine, 21 bags of crack cocaine, and 70 gel caps of heroin to an undercover ATF special agent. McNair also possessed a firearm throughout the time of the conspiracy, to serve as protection against rivals who would try to steal drugs, drug proceeds, or drug territory. On September 8, 2017, a co-conspirator called McNair and told him to bring the co-conspirator a pistol. McNair immediately took his pistol to the co-conspirator to use. The co-conspirator subsequently returned the gun to McNair. On September 18, 2017, ATF agents watched McNair leave his house to go the drug shop and saw McNair reach for his waistband and grab at an object they believed to a gun. McNair was arrested and agents recovered a loaded 9mm pistol from McNair.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the FBI and the Baltimore Police Department for their work in the Hair case and thanked Assistant U.S. Attorneys Christina A. Hoffman and Peter J. Martinez, who prosecuted the case. U.S. Attorney Hur commended the ATF, the DEA, and the Baltimore Police Department for their work in the McNair case. Mr. Hur thanked Assistant U.S. Attorney Matthew DellaBetta and Michael C. Hanlon, who prosecuted this Organized Crime Drug Enforcement Task Force case.
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Tucker County man sentenced for methamphetamine distributionRead the Press Release
ELKINS, WEST VIRGINIA – Michael Brooks Ketterman, of Hambleton, West Virginia, was sentenced today to 60 months incarceration for distributing methamphetamine, United States Attorney Bill Powell announced.
Ketterman, age 31, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” in October 2018. Ketterman admitted to possessing more than five grams of methamphetamine, also known as “Ice,” in Randolph County in September 2017.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force and the Elkins Police Department investigated.
U.S. District Judge John Preston Bailey presided.
Timber Lake Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Timber Lake, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on March 26, 2019, by U.S. District Judge Roberto A. Lange.
Chad Holzer, age 40, was sentenced to 24 months in federal prison, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Holzer was indicted by a federal grand jury on November 14, 2018. He pled guilty on January 3, 2019.
The conviction stemmed from an incident on September 23, 2018, when Holzer was attempting to enter an individual’s home with a hatchet. The owner of the home heard pounding at the front door and opened it. At that time, Holzer entered the residence and a physical altercation ensued. During the fight, Holzer held up the hatchet and swung it at one of the individuals, causing a laceration and swelling to their hand.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Holzer was immediately turned over to the custody of the U.S. Marshals Service.
Three sentenced for smuggling cocaine in children’s toys and laundering drug money through car rental businessRead the Press Release
ATLANTA – Marlon Matthew Pittman, the last of three defendants operating a cocaine smuggling and money-laundering ring, has been sentenced to federal prison. The men routinely shipped their drugs from Puerto Rico to Atlanta through the U.S. Mail hidden inside children’s toys and cans of powdered milk, and laundered their drug money using a car rental company and an elaborate scheme involving hundreds of money orders. All three men had prior federal drug trafficking convictions. Pittman attempted to flee the country while awaiting trial but was arrested trying to board a flight to Ethiopia using a fake identity.
“These drug smugglers endangered countless people from Puerto Rico to Atlanta and beyond,” said U.S. Attorney Byung J. “BJay” Pak. “Ironically, it was the money laundering scheme they created to hide their criminal enterprise that first caught the attention of investigators and led to their downfall. Criminals regularly believe they have developed a new way to evade detection. However, sophisticated abilities developed by our law enforcement partners help identify the crooks, leading to a successful prosecution like this one.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division commented, “Drug distribution networks often take extreme measures in order to hide the poison they peddle, as was the case in this investigation. This is a perfect illustration of the battle DEA and its law enforcement counterparts face when trying to prevent dangerous drugs from hitting the streets of our communities. As a result of DEA’s unwavering commitment and through the strength of its partnerships, these defendants will spend well-deserved time in prison.”
“This sentencing brings to close a lengthy investigation into a complex money laundering scheme in which defendants illegally funneled narcotic proceeds in an effort to avoid detection by law enforcement. By following the money trail, Postal Inspectors were able to identify transactions that were utilized in furtherance of their drug smuggling operation,” said David M. McGinnis, U.S. Postal Inspector in Charge of the Charlotte Division. “The Postal Inspection Service is committed to working with our law enforcement partners to investigate and seek the prosecution of those who attempt to conceal and launder illicit proceeds.”
According to U.S. Attorney Pak, the charges, and other information presented in court: This multi-agency investigation began when federal agents noticed suspicious financial activity by an Atlanta-based car rental business and an unusual pattern of money order purchases dating back to 2012. Realizing the activity was money laundering, they began a series of federally authorized wiretaps on cellular phones used by the owner of the car rental business—Marlon Pittman—and members of his drug trafficking operation (“DTO”) in Atlanta and Puerto Rico.
The general scheme of the DTO was that Vladimir Collozo-Florido imported loads of more than 200 kilograms of cocaine at a time into Puerto Rico using cargo ships from Colombia. He then sent the cocaine through the U.S. Mail to Pittman in Atlanta, usually in parcels containing up to 1.5 kilograms at a time. In order to avoid detection, if the parcels were inspected, the cocaine was hidden inside seemingly innocent items such as children’s toys, cans of powdered milk, or cans of beans. Carlos Gonzalez-Catala was responsible for packaging the drugs using a can sealing machine and other disguising materials, and then mailing the packages. Pittman used a number of associates in Atlanta to receive the parcels on his behalf using fake names, and he would sell the cocaine to customers in Atlanta, South Carolina, Maryland, and New York.
Pittman initially transferred the proceeds of the drug sales back to Puerto Rico by carrying large quantities of cash – including one instance of $90,000 in a duffle bag – as carryon luggage on commercial flights. But to conceal the scheme and deal with increased amounts of cash, he set up a car rental business and funneled the money through the business’s bank accounts. He also purchased money orders in small increments, visiting multiple post offices on the same day, in an effort to avoid detection. He then mailed the money orders to Puerto Rico, where they were cashed by a network of associates.
Collazo-Florido and Gonzalez-Catala pleaded guilty first, with Collazo-Florido ordered to forfeit $1,000,000 as part of his sentence. While Pittman was awaiting trial, he was actually planning to flee the country. He was ultimately caught as he was passing through a TSA checkpoint at an airport to board a flight overseas, using an international travel document in a fake name he obtained by bribing foreign government officials. He also had in his possession eleven pounds of MDMA tablets hidden inside children’s Flinstones vitamins bottles. Upon searching his cell phone, agents realized Pittman had been on a crime spree on his way out of the country, trying to obtain money to take with him through fraudulent loans and fraudulent tax refunds, and also emptying his family’s food stamps account.
Members of the operation who have been sentenced by U.S. District Judge Amy Totenberg are:
- Marlon Matthew Pittman, 45, of Mableton, Georgia, was sentenced to 17 years in prison, to be followed by eight years of supervised release, and ordered to forfeit the residence he purchased with drug money. Pittman pleaded guilty to conspiracy to possess with the intent to distribute cocaine and conspiracy to commit money laundering on August 27, 2018.
- Vladimir Collazo-Florido, 44, of Carolina, Puerto Rico, was sentenced to 11 years and four months in prison, to be followed by eight years of supervised release, and ordered to forfeit $1,000,000. Collazo-Florido pleaded guilty to conspiracy to possess with the intent to distribute cocaine on November 13, 2017, and was sentenced on March 8, 2018.
- Carlos Gonzalez-Catala, 42, of Guaynabo, Puerto Rico, was sentenced to three years and three months in prison, to be followed by three years of supervised release. Gonzalez-Catala pleaded guilty to conspiracy to possess with intent to distribute cocaine on November 13, 2017, and was sentenced on February 8, 2018.
This case was investigated by the Drug Enforcement Administration and U.S. Postal Inspection Service.
Assistant U.S. Attorney Garrett L. Bradford, Deputy Chief, Narcotics and Dangerous Drugs Section, prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Stonewall Man Sentenced to 87 Months for Possession of Firearms, SilencerRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Carl Martin Ross, Jr., age 53, of Stonewall, Oklahoma, was sentenced to 87 months imprisonment and 3 years of supervised release for Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2); and for Possession Of Unregistered Silencer, in violation of Title 26, United States Code, Sections 5861(d), 5841, 5845(a) and 5871. Ross was found guilty after a non-jury trial on August 28, 2018. The verdict and sentence was the result of an investigation by the Pontotoc County Sherriff’s Office, the Pushmataha County Sherriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged and evidence at trial proved that on or about October 7, 2017 the defendant, who had been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed numerous firearms that had been shipped and transported in interstate commerce. Evidence also proved the allegations of the second count of the Indictment, that the defendant knowingly possessed a silencer, which is a firearm, as defined in Title 26, United States Code, Section 5845, not registered to him in the National Firearms Registration and Transfer Record.
United States Attorney Brian J. Kuester said, “This office and our federal law enforcement partners are committed to working with local law enforcement agencies in their efforts to make communities in the Eastern District safer. This verdict is a result of that commitment and the cooperative work of numerous agencies.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Stockton Man Pleads Guilty to Unemployment Benefits Fraud and Identity TheftRead the Press Release
SACRAMENTO, Calif. — John Michael “Mike” Herron II, 36, of Stockton, pleaded guilty today to mail fraud and aggravated identify theft in connection with an unemployment benefits fraud and identity theft scheme, U.S. Attorney McGregor W. Scott announced.
According to court documents, from at least December 2014 through January 2018, Herron participated in a scheme to defraud the State of California Employment Development Department (EDD) by filing fraudulent claims for unemployment insurance benefits. In furtherance of this scheme, Herron and his co-defendant, Robert Maher, formerly of Stockton, created fictitious companies and fictitious employees (by using the real identities of persons with and without their knowledge), and filed claims with EDD, falsely stating that the employees had been laid-off or fired. The unemployment benefits were deposited onto debit cards that were mailed to addresses controlled by Herron, Maher, or their associates. In at least one instance, ATM cameras captured Herron withdrawing unemployment benefit funds using a debit card registered to an identity theft victim. Herron was connected to approximately $578,185 in fraudulent claims to EDD, of which approximately $485,685 was paid out by EDD.
This case is the product of an investigation by the U.S. Department of Labor Office of Inspector General, the Federal Bureau of Investigation, and the California Employment Development Department’s Investigation Division. Assistant U.S. Attorneys Amy Schuller Hitchcock and Shelley D. Weger are prosecuting the case.
The charges against Maher are pending. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Herron is scheduled to be sentenced by U.S. District Judge John A. Mendez on July 2. Herron faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for the mail fraud count, and a mandatory two-year consecutive sentence and $250,000 fine for the aggravated identity theft count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Staten Island Man Indicted for Defrauding Investors Trading in Virtual CurrencyRead the Press Release
A nine-count indictment was unsealed today in federal court in Brooklyn charging Patrick McDonnell, also known as “Jason Flack,” with wire fraud in connection with a scheme to defraud investors in virtual currency. McDonnell was arrested earlier today, and is scheduled to be arraigned this afternoon before United States Magistrate Judge Sanket J. Bulsara.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the charges.
“As alleged, the defendant defrauded investors by making false promises and sending them fraudulent balance statements, hiding the fact that he was stealing their money for his personal use,” stated United States Attorney Donoghue. “The defendant’s fraud ends now, he will be held responsible for his criminal conduct.” Mr. Donoghue expressed his grateful appreciation to the United States Commodity Futures Trading Commission (CFTC) for its significant cooperation and assistance in this case.
“The defendant, Patrick K. McDonnell, used smoke and mirrors to allegedly dupe investors into paying his company—CabbageTech, for advice and strategies on crypto-currency trading,” stated USPIS Special Agent-in-Charge Bartlett. “However, Postal Inspectors and their federal law enforcement partners unmasked McDonnell and his scheme to defraud investors, and brought him to justice for his alleged criminal actions.”
As alleged in the indictment, between approximately November 2014 and January 2018, McDonnell portrayed himself as an experienced trader in virtual currency, promising customers he would provide trading advice, and purchase and trade virtual currency on their behalf. Beginning in approximately May 2016, McDonnell made similar representations through his Staten Island-based company, CabbageTech, Corp., also known as Coin Drop Markets. However, neither McDonnell nor CabbageTech provided investment services. Instead, McDonnell sent investors false balance statements purportedly showing that their investments had been profitable, and stole their money for his personal use. When investors requested refunds, McDonnell initially offered excuses for delays in repayment, and eventually stopped responding at all. In total, McDonnell defrauded at least 10 victims of at least $194,000 in U.S. currency, 4.41 Bitcoin, 206 Litecoin, 620 Ethereum Classic and 1,342,634 Verge currency.The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, McDonnell faces a maximum sentence of 20 years’ imprisonment.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Hiral D. Mehta is in charge of the prosecution.
The Defendant:
PATRICK MCDONNELL (also known as “Jason Flack”)
Age: 46
Staten Island, New YorkE.D.N.Y. Docket No. 19-CR-148 (NGG)
South Sioux City Man Sentenced in Methamphetamine ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a South Sioux City, Nebraska, man convicted of conspiring to distribute over 500 grams of methamphetamine was sentenced on March 19, 2019, by U.S. District Judge Karen E. Schreier.
Jose Valentin Carrillo, age 35, was sentenced to 51 months in federal prison, to be followed by 5 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Carrillo was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on January 9, 2018. He pled guilty to the offense on December 10, 2018.
Carrillo was responsible for setting up the sale of one kilogram of methamphetamine between one of his co-conspirators and a confidential informant working with law enforcement. He received $500 from the co-conspirator for brokering the sale.
This case was investigated by the Department of Homeland Security, Drug Enforcement Administration, South Dakota Division of Criminal Investigation, the police departments of Sioux City, Iowa, Madison, South Dakota, and Brookings, South Dakota, and the Brookings County Sheriff’s Office. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Carrillo was immediately turned over to the custody of the U.S. Marshals Service.
South Bay Doctor Pleads Guilty to Unlawfully Distributing Hydrocodone and Committing Health Care FraudRead the Press Release
SAN JOSE – South Bay doctor Venkat Aachi pleaded guilty to distributing hydrocodone outside the scope of his professional practice and without a legitimate medical need, and to health care fraud, announced United States Attorney David L. Anderson, Drug Enforcement Administration (DEA) Special Agent in Charge Chris Nielsen, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) Special Agent in Charge Steven J. Ryan, and the California Department of Justice Bureau of Medi-Cal Fraud and Elder Abuse (BMFEA). The guilty plea was accepted by the Honorable Edward J. Davila, U.S. District Judge.
According to the plea agreement, Aachi, 52, of Saratoga, was a licensed physician in the state of California who operated a pain clinic in San Jose. He maintained a DEA registration number authorizing him to prescribe controlled substances. Aachi admitted that from September 18, 2017, through July 2, 2018, he wrote hydrocodone-acetaminophen prescriptions that were outside the scope of his professional practice and not for a legitimate medical purpose. The plea agreement describes transactions in which Aachi improperly distributed hydrocodone. For example, in November of 2017, he wrote a prescription enabling a patient to receive 90 hydrocodone-acetaminophen pills. Aachi did not conduct a physical examination of the patient nor discuss the patient’s pain or response to prior medication. Aachi acknowledged that he knew the prescriptions were not for a legitimate medical purpose and that he did not write the prescriptions in the usual course of his professional practice.
Further, Aachi admitted that on July 2, 2018, he falsely submitted to an insurance company a false and fraudulent claim for payment for healthcare benefits, items, and services. Aachi admitted he acted with the intend to defraud the insurance company.
On October 9, 2018, a federal grand jury indicted Aachi and charged him with six counts of distributing drugs outside the scope of professional practice, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C), and one count of health care fraud, in violation of 18 U.S.C. § 1347. Aachi pleaded guilty to one count under each statute.
Aachi remains free on bail pending sentencing. Judge Davila scheduled Aachi’s sentencing hearing for July 1, 2019.
Aachi faces a maximum sentence of 20 years in prison and a fine of $1,000,000 for the illegal distribution of hydrocodone count and 10 years in prison and a $250,000 fine for the health care fraud count. Additional fines, restitution, and additional periods of supervised release also could be ordered at sentencing. However, any sentence following conviction would be imposed by the court 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 Shailika Kotiya is prosecuting the case with the assistance of Andy Ding. This prosecution is the result of investigations by the DEA, FBI, HHS-OIG, and the BMFEA. Through the BMFEA, the California Department of Justice regularly works with other law enforcement agencies to investigate and prosecute fraud perpetrated on the Medi Cal program against a wide variety of healthcare providers, including doctors and pharmaceutical companies. This case was investigated and prosecuted by member agencies of the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.
Sioux Falls Woman Sentenced in Methamphetamine Distribution ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, woman convicted of conspiring to distribute 500 grams or more of methamphetamine was sentenced on March 25, 2019, by U.S. District Judge Karen E. Schreier.
Nicole Marie Watson, age 35, was sentenced to 180 months in federal prison, to be followed by 10 years of supervised release. She was also ordered to pay $100 to the Federal Crime Victims Fund.
Watson was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on March 13, 2018. She pled guilty on December 10, 2018.
Watson received approximately eight pounds of methamphetamine from co-conspirators that she distributed in Sioux Falls.
This case was investigated by the Sioux Falls Area Drug Task Force, South Dakota Highway Patrol, South Dakota Division of Criminal Investigation, and the Drug Enforcement Administration. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Watson was immediately turned over to the custody of the U.S. Marshals Service.
Sex Trafficker of Minors Sentenced to 32 Years in Federal PrisonRead the Press Release
Jackson, Miss. – Willie Charles Blackmon, Jr., 37, of Jackson, was sentenced today by U.S. District Judge Carlton W. Reeves to serve 384 months in federal prison, followed by a lifetime of supervised release, for sex trafficking of minors, announced United States Attorney Mike Hurst and Federal Bureau of Investigation Special Agent in Charge Christopher Freeze. Blackmon was also ordered to pay a $5,000 fine and register as a sex offender for life.
"Harming, threatening and drugging children to do unspeakable things for money will be swiftly prosecuted by this office and harshly punished in this district. The men and women in law enforcement, as well as our prosecutors and support staff, are to be commended for bringing justice to these victims and accountability to this defendant. I would ask the public to remain vigilant as to these crimes and to promptly report any suspicious activities to law enforcement so that other children never become victims of such heinous acts in the future," said U.S. Attorney Mike Hurst.
"Exploitation of a child for any reason is despicable and has no place in our communities," said FBI Special Agent in Charge Freeze. "The FBI's Child Explotation Task Force will continue to actively pursue anyone who deprives the community of the innocence of children, and fight for justice for their victims."
After a four-day trial in U.S. District Court in Jackson, Blackmon was found guilty on November 30, 2018, of two counts of sex trafficking minors and two counts of promoting a prostitution business.
In July 2014, an investigation began into a prostitution ring in the Jackson area led by Willie Charles Blackmon, Jr. The investigation revealed that Blackmon purchased a runaway minor for $500 and recruited other runaway minors for prostitution. He rented rooms at local hotels in Jackson and Vicksburg for days at a time, where the minors engaged in commercial sex acts with men for money. Blackmon kept most, if not all, of the money earned by the minors from the sex acts. The evidence showed that Blackmon physically harmed the minors, and would threaten them by holding a gun to their heads if they did not perform or if they disrespected him. He also provided drugs to the minors.
The Jackson FBI, Mississippi Attorney General’s Office, FBI New Orleans Violent Crimes Against Children Task Force, Clinton Police Department and Ouachita Parish Sheriff’s Office investigated the prostitution ring which spread throughout Mississippi, Louisiana, Florida and Arkansas. Assistant United States Attorneys Glenda R. Haynes and Keith French prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Sallisaw Man Pleads Guilty to Possession of Destructive DeviceRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Randall Doyle McGuire, age 39, of Sallisaw, Oklahoma, entered a guilty plea to Possession Of Unregistered Firearm (Destructive Device-Incendiary Bomb), in violation of Title 26, United States Code, Sections 5861(d), 5841 and 5871, punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
The Indictment alleges that on or about July 16, 2018, within the Eastern District of Oklahoma, the defendant, did knowingly possess a destructive device (incendiary bomb), which is a firearm, as defined in Title 26, United States Code, Section 5845, not registered to him in the National Firearms Registration and Transfer Record.
The charges arose from an investigation by the Sallisaw Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Recognizing the WDTN’s First Female AUSA, Devon L. Gosnell, during Women’s History MonthRead the Press Release
Memphis, TN– As we recognize and celebrate Women’s History Month in March, the U.S. Attorney’s Office would like to share and highlight the accomplishments of Ms. Devon L. Gosnell, the first female Assistant United States Attorney (AUSA) to serve in the Western District of Tennessee. Ms. Gosnell was first appointed to serve as an AUSA in 1975 by United States Attorney Thomas F. Turley, Jr. In 1987, she was promoted to the position of Criminal Chief AUSA by United States Attorney W. Hickman Ewing, which was also the first time a woman held this management position in the office. As an Assistant U.S. Attorney, Ms. Gosnell handled both civil and criminal matters. She tried in excess of 100 jury cases, and handled over 40 appeals before the Sixth Circuit Court of Appeals. Ms. Gosnell served for nineteen years as an advocate for the people of the Western District of Tennessee, as a mentor, and as a leader. Because of her many firsts within the Department of Justice, Ms. Gosnell paved the way for so many women in our office. Today the U.S. Attorney’s office consists of 17 women Assistant United States Attorneys, including the current Criminal Chief and OCDETF Chief, thanks to Ms. Gosnell’s willingness to be the first.
Devon L. Gosnell graduated magna cum laude from West Virginia University in 1972 with a bachelor’s in political science. She earned her juris doctorate from West Virginia University in 1975 where she served on law review, the moot court board, and the moot court team. In 1982, she earned her MBA from the University of Memphis, and in 1995, she graduated from Harding University School of Theology with honors. Not only are Ms. Gosnell’s academic accomplishments worthy of recognition, but perhaps most notable are her achievements as a woman.
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R.I. Man Sentenced for Health Care and Welfare Fraud, Misuse of Social Security Numbers, ID Theft, Illegal ReentryRead the Press Release
PROVIDENCE, RI – A Pawtucket man previously deported to his native Dominican Republic after being convicted and incarcerated for trafficking significant quantities of heroin and cocaine was sentenced today to 25 months in federal prison for reentering the United States illegally, and using the identity and Social Security number of another person to fraudulently obtain health care and welfare benefits.
Carlos Jose Portes-Ortiz, 38, a.k.a. Juan Carlos Mendieta Vega, a.k.a. Anthony Clausell Rivera, a.k.a. Jose Jimenez Agosto, a.k.a. Willian Acevedo Gil, a.k.a. Allison Gabriel, pleaded guilty on October 10, 2018, to health care fraud, Supplemental Nutrition Assistance Program (SNAP) fraud, misuse of Social Security numbers, aggravated identity theft, and illegal reentry.
Portes-Ortiz was deported from the United States in February 2009, after completing a federal prison sentence imposed in June 2007 for conspiracy to import 100 grams or more of heroin and 500 grams or more of cocaine. Portes-Ortiz was arrested in June 2005 at Newark Liberty International Airport after arriving from the Dominican Republic.
The sentence imposed today by U.S. District Court Judge John J. McConnell, Jr., is announced by United States Attorney Aaron L. Weisman, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General, Phillip Coyne, Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations Scott E. Antolik, and Special Agent in Charge of the Northeast Region of the United States Department of Agriculture Office of Inspector General Bethanne M. Dinkins.
In March 2017, Portes-Ortiz was arrested in Dedham, Mass., after attempting to purchase more than $1,000 worth of iPhone and iPad equipment using a driver’s license depicting his photograph and a credit card both in the name of a female. At the time of his arrest, Portes-Ortiz was found to be in possession of a Rhode Island Neighborhood Health Plan card, a Rhode Island EBT card for SNAP benefits, a Rhode Island identification card, a Puerto Rican driver’s license and a bank debit card. Some of the cards seized from Portes-Ortiz contained his photograph but all were in the names of others than his own.
It was later determined through fingerprints that the person arrested was actually Portes-Ortiz.
An investigation led by agents from the U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations determined that Portes-Ortiz used multiple names and stolen personal identifying information to gain Rhode Island ID cards, as well as the identity of another person to obtain Medicaid and health care benefits, including medical, pharmaceutical and dental services; and EBT cards and SNAP benefits.
The investigation revealed that Portes-Ortiz was employed at a retail store while, at the same time, fraudulently obtaining federal program benefits and services using a stolen identity and identifying information.
At sentencing, Portes-Ortiz was ordered to pay restitution of approximately $13,000.
Portes-Ortiz, has been detained in federal custody since his arrest on June 27, 2018. He faces deportation proceedings upon completion of his term of incarceration.
The case was prosecuted by Assistant U.S. Attorneys Ly T. Chin and Terrence P. Donnelly.
The matter was investigated by agents from the U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations; Homeland Security Investigations - Immigration and Custom Enforcement; U.S. Social Security Administration, Office of Inspector General; and U.S. Department of Agriculture, Office of Inspector General.
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Portland Nurse Practioner Sentenced to Four Years in Federal Prison for Illegal Opioid Distribution (Photo)Read the Press Release
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Downloadable file: Cash Found in DeMille Bedroom (1)
Downloadable file: Cash Found in DeMille Bedroom (2)Prosecution marks the first opioid pill mill case in the District of Oregon
PORTLAND, Ore.—Former nurse practitioner Julie Ann DeMille, 60, of Portland, was sentenced today to 48 months in federal prison and three years’ supervised release for illegally distributing prescription opioids, filing a false tax return and lying to federal agents.
“Our nation is drowning in substance abuse. We must wake up to this reality and stop pushing the reckless use of controlled substances. DeMille treated her nursing credentials like a license to deal opioids—a drug dealer masquerading as a medical professional. It’s hard to comprehend that in the midst of the deadliest drug crisis in history, DeMille risked the lives of hundreds to turn a profit,” said Billy J. Williams, U.S. Attorney for the District of Oregon.
“Opioid abuse is devastating our communities and we must respond aggressively to stem the flow because every person lost in this crisis is one too many,” said DEA Special Agent in Charge Keith Weis.
“This case is an excellent example of how the financial expertise of IRS-Criminal Investigation employees contributes to the federal law enforcement fabric,” said IRS-Criminal Investigation Special Agent in Charge Justin Campbell. “IRS-Criminal Investigation is committed to serving the U.S. taxpayers and working with our partners to make our communities safer. DeMille has been held accountable for her actions and we will continue to investigate and seek prosecution of individuals who do not report their taxable income, regardless of whether the income is legal or illegal.”
According to court documents, in January 2015, DeMille opened the Fusion Wellness Clinic on Southeast 122nd Avenue in Portland across the street from the Multnomah County Parole and Probation Office. From the clinic’s opening until July 2016, DeMille illegally wrote thousands of prescriptions for opioids including oxycodone and hydrocodone.
As early as 2013, DeMille began planning a move from Houston, Texas to Portland. She was attracted to Oregon where licensed nurse practitioners can write prescriptions without the oversight and approval of a physician. She moved in 2014 and was hired by a publicly funded, county health clinic. From the beginning, DeMille planned to subsidize her county income by operating an illegal opioid pill mill. By the end of 2014, DeMille had registered the “Fusion Wellness” business name and begun searching for clinic locations.
After DeMille’s first clinic opened in January 2015, word spread quickly that the small, cash-only operation was a reliable source for cheap and easy opioid prescriptions. On Friday and Saturday mornings, customers would spill into parking areas outside the clinic and wait in cars for their turn in the cramped office. The clinic quickly outgrew its original location and, in April 2015, was moved to a new location on Northeast 101st Avenue in Portland.
Before long, DeMille’s prescribing habits began attracting the attention of law enforcement and the Oregon State Board of Nursing. Shortly after the clinic opened, three of DeMille’s patients attempted to fill identical prescriptions for 30mg doses of oxycodone together at a local pharmacy. The pharmacist turned the patients away and contacted police. A Gresham police officer later contacted DeMille by phone to discuss the prescriptions and forwarded a copy of the general offense report to the state nursing board. The nursing board opened an investigation into DeMille’s prescribing practices just three weeks after the clinic opened.
In early 2015, the clinic’s patient files included very few records. Knowing her lax prescribing practices and record keeping would not pass investigative scrutiny, DeMille began forging patient signatures on newly created forms. In March 2015, DeMille met with nursing board investigators to discuss the complaint and her prescribing practices. During the course of the interview, she repeatedly lied about the nature of her practice, insisting that the clinic’s patients were treated for simple chronic diseases and a variety of other wellness issues. Ultimately, the nursing board issued a letter of concern to DeMille, but did not pursue disciplinary action.
DeMille quickly altered her practices in response to the nursing board’s investigation in an attempt to avoid further detection. Throughout the remainder of 2015, DeMille continued her work at the county health clinic while operating the clinic just two days a week. In a typical day at the clinic, DeMille saw up to 20 patients, charging each $200 in cash. In 2015, the clinic generated at least $388,000 in revenue, none of which was reported on DeMille’s income tax return. In July 2016, while conducting a federal search warrant, DEA agents found more than $51,000 in cash stored in DeMille’s bedroom.
In 2015 alone, according to data from the Oregon Prescription Drug Monitoring Program, DeMille wrote more than 1,940 prescriptions for controlled substances. Together, these prescriptions resulted in the distribution of more than 219,000 pills, 96.7% of which were opioids.
DeMille pleaded guilty on December 12, 2018 to two counts of illegally distributing a controlled substance and to one count of filing a false tax return and lying to federal agents.
DeMille’s co-conspirator and former Fusion Wellness Clinic manager, Osasuyi “Ken” Idumwonyi, pleaded guilty on February 28, 2017, to conspiring to distribute or dispense and possessing with intent to distribute or dispense the Schedule II controlled substances oxycodone and hydrocodone. He will be sentenced on June 3, 2019.
This case was investigated by the Drug Enforcement Administration, Internal Revenue Service, U.S. Marshals Service and Portland Police Bureau. It was prosecuted by Thomas S. Ratcliffe and Donna Brecker Maddux, Assistant U.S. Attorneys for the District of Oregon.
Drug abuse affects communities across the nation, and opioid abuse continues to be particularly devastating. The CDC reports that from 1999 to 2016, more than 630,000 people have died from a drug overdoses. In 2016, 66% of drug overdose deaths involved an opioid. Drug overdose is now the leading cause of injury or death in the United States. In Oregon, the total number of deaths related to drug use increased 11 percent between from 2013 to 2017, with 546 known drug related deaths in 2017.
If you or someone you know suffers from addiction, please call the Lines for Life substance abuse helpline at 1-800-923-4357 or visit www.linesforlife.org. Phone support is available 24 hours a day, seven days a week. You can also text “RecoveryNow” to 839863 between 8am and 11pm Pacific Time daily.
Pittsburgh Man Sentenced for Conspiring to Distribute HeroinRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, was sentenced in federal court to three years’ probation on a charge of conspiracy to distribute heroin, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Brent Williams, age 32.
According to information presented to the court, Brent Williams was indicted in connection with a DEA wiretap investigation. The intercepted wiretap communications revealed that Williams and others conspired to possess with intent to distribute and distribute quantities of heroin between January and September 2016.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises. United States Attorney Brady commended the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Pittsburgh Bureau of Police, and Pennsylvania State Police for the investigation leading to the successful prosecution of Brent Williams.
Owner of South Bay Law Firm and Office Manager Charged with Committing Large-Scale Immigration Visa FraudRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Danhong “Jean” Chen, a/k/a Maria Sofia Taylor, and her business partner Jianyun “Tony” Ye in connection with an immigration visa fraud scheme, announced United States Attorney David L. Anderson, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, Securities and Exchange Commission Office of the Inspector General, Inspector General Carl Hoecker. The 14-count indictment, filed March 7, 2019, and unsealed late yesterday, alleges the defendants committed visa fraud and related crimes to obtain immigration benefits for more than 100 foreign investors through the government’s Employment-Based Immigration Fifth Preference, or “EB-5,” visa program.
According to the indictment, Chen, 54, of Atherton, was the sole partner at the Law Offices of Jean D. Chen, which held itself out as specializing in immigration law. Ye, 51, also of Atherton, was formerly married to Chen and held himself out as the manager of Chen’s law office. The indictment alleges Chen and Ye prepared and submitted to the United States Citizenship and Immigration Services (USCIS) fraudulent documents that contained false signatures and falsely described how applicants would qualify for the EB-5 program.
Under the EB-5 program, foreign nationals may obtain permanent United States residency, commonly known as “green card” status, by investing in qualifying American businesses. Alien investors who comply with program requirements initially receive a grant of conditional permanent residency status for a two-year period. After two years, the alien investor can petition for permanent residency. To obtain permanent residency status, the applicant’s investment must amount to $500,000 if made in certain geographical areas with low employment rates; if the investment is not in a designated low-employment area, the investment must amount to a minimum of $1,000,000. In addition, under the EB-5 program, applicants may make use of “regional centers.” Entrepreneurs seeking investments for American businesses may establish regional centers to promote investment opportunities and make such opportunities available to EB-5 applicants. The regional centers generally promote investment opportunities within designated geographic areas. The Law Offices of Jean D. Chen represented clients who invested a total of approximately $52,000,000 into projects under the EB-5 program.
In this case, the indictment describes steps taken by Chen and Ye to fraudulently obtain immigration benefits through the EB-5 program on behalf of their clients. First, the indictment alleges that Chen and Ye falsified documents to hide the true ownership and nature of a regional center. Specifically, the indictment alleges that in 2014, Chen and Ye purchased the Golden State Regional Center and other entities, and almost immediately after the purchase, transferred ownership to a straw owner. The person to whom the entity was transferred did not know she was being named as the owner. Also, Chen and Ye filed papers with USCIS, requesting that the government continue to recognize Golden State Regional Center as a regional center qualified to promote EB-5 investment within the South Bay. The papers contained false signatures of the purported straw owner. Second, defendants prepared and submitted falsified EB-5 applications. For example, visa applications contained false signatures of the purported straw owner, false statements about the extent to which the Law Offices of Jean D. Chen represented both the investor and Golden State Regional Center, and false statements about the manner in which investor funds would be used.
The indictment also charges defendants with obstruction of justice related to investigations being conducted by the United States Securities and Exchange Commission (SEC) and the FBI. On October 18, 2018, the SEC filed a civil complaint against Chen, Ye, and other individuals and entities, alleging, among other things, that Chen and Ye improperly solicited investments and committed other violations of law. The indictment alleges that during the course of the SEC’s investigation, defendants made demands of the straw owner of Golden State Regional Center that she provide false answers to SEC investigators. Further, the defendants allegedly logged onto someone else’s email account and deleted emails relevant to the FBI’s investigation into the visa fraud.
In sum, Chen and Ye both are charged with ten counts of visa fraud, in violation of 18 U.S.C. § 1546(a); one count of obstruction of justice, in violation of 18 U.S.C. § 1505; one count of obstruction of justice, in violation of 18 U.S.C. § 1512(b)(3); and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A. In addition, Ye is charged with one count of identity theft, in violation of 18 U.S.C. § 1018(a)(7).
An indictment merely alleges that crimes have been committed, and all defendants, including Chen and Ye, are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face the following maximum sentences:
DEFENDANT
STATUTE
CHARGE
MAXIMUM PENALTY
Chen and Ye
18 U.S.C. § 1546(a)
Visa Fraud
Maximum term of imprisonment: 10 years
Maximum fine: $250,000
Maximum term of supervised release: 3 years
Restitution
Forfeiture
Chen and Ye
18 U.S.C. § 1505
Obstruction of Justice
Maximum term of imprisonment: 5 years
Maximum fine: $250,000
Maximum term of supervised release: 3 years
Restitution
Forfeiture
Chen and Ye
18 U.S.C. § 1512(b)(3)
Obstruction of Justice
Maximum term of imprisonment: 20 years
Maximum fine: $250,000
Maximum term of supervised release: 3 years
Restitution
Forfeiture
Chen and Ye
18 U.S.C. § 1028A
Aggravated Identity Theft
Maximum term of imprisonment: 2 years (to run consecutive to any other underlying felony)
Maximum fine: $250,000
Maximum term of supervised release: 1 years
Ye
18 U.S.C. § 1028(a)(7)
Identity Theft
Maximum prison sentence: 5 years
Maximum fine: $500,000 or twice the gross gain or loss, whichever is greater
Maximum term of supervised release: 3 years
Restitution
Ye made an appearance yesterday before United States Magistrate Judge Susan van Keulen. He pleaded not guilty to the charges and was released on a $750,000 bond. His next scheduled appearance is for a hearing before the Honorable Lucy H. Koh, U.S. District Judge, on May 15, 2019, for a trial setting.
Chen remains at large. According to court documents, Chen became a naturalized citizen of Dominica in October 2018, approximately at the same time the SEC filed its complaint against her, and may be using the name Maria Sofia Taylor. Chen left the United States immediately after the SEC filed its civil complaint.
Assistant United States Attorney Patrick R. Delahunty is prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of an investigation led by the FBI and the SEC Office of the Inspector General.
Owner of Medical Technology Company Sentenced to 30 Months in Prison for Evading Taxes on over $21 Million in Business IncomeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that LEWIS STAHL, the owner of a Manhattan medical technology company, was sentenced to 30 months in prison for evading federal income taxes on more than $21 million in business income, which resulted in a loss to the U.S. Treasury of more than $6.3 million in taxes due and owing. STAHL pled guilty to one count of tax evasion on September 27, 2018, before U.S. District Judge Ronnie Abrams, who imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Lewis Stahl flagrantly evaded paying taxes on his business income, denying the federal government more than $6 million in taxes. Knowing full well that he was committing a crime, Stahl will spend time behind bars for his wrongdoing.”
According to the Information to which STAHL pled guilty, court filings, and statements made in public court proceedings:
STAHL is an experienced businessperson who owns and operates a Manhattan medical software company (the “Medical Technology Company”) that develops and sells medical software applications. The Medical Technology Company holds itself out as a provider of “computer ready” and “fully mobile” applications that allow physicians to prescribe medications and to order and view diagnostic information, lab results, and cardiology/radiology images.
Between 2010 and 2014, the Medical Technology Company earned more than $32 million in gross income. Less business expenses, these earnings resulted in over $21 million in business income to STAHL, which he accessed by using business bank accounts and business credit cards. STAHL used this money to fund the purchase of personal items for himself, such as clothing, jewelry, watches, real estate rentals, country club benefits, and a firearms collection. Prior to 2015, despite earning this business income from the Medical Technology Company, STAHL deliberately avoided filing tax returns, and did not report any of the income to the Internal Revenue Service (the “IRS”).
In March of 2015, an IRS revenue agent (the “IRS Revenue Agent”) contacted STAHL regarding his failure to file for the tax years 2010 through 2014, and asked STAHL to address the situation by filing delinquent Forms 1040 for those years (the “Delinquent Returns”). Shortly thereafter, STAHL retained a certified public accountant (the “Accountant”) to file the Delinquent Returns for STAHL. STAHL told the Accountant that he had failed to file tax returns in the past because he had payroll tax problems with the IRS and “stuck his head in the sand.” He also told the Accountant that he did not have any personal bank accounts in his name because he believed the IRS would seize any such accounts. STAHL further stated to the Accountant, falsely, that he was a “W-2” employee only of the Medical Technology Company, that his W-2 income was his only income, and that he had no ownership interest in the Medical Technology Company. In truth and in fact, STAHL had an ownership interest in the Medical Technology Company, and had earned over $21 million in business income from the company, well beyond the income of a few hundred thousand dollars that was reflected on his W-2s.
The Accountant subsequently filed the Delinquent Returns for STAHL, which, as a result of the lies that STAHL told the Accountant, were false and fraudulent. Specifically, the Delinquent Returns falsely claimed that STAHL’s total income was $38,652 in 2010; $7,115 in 2011; $84,615 in 2012; $100,000 in 2013; and $100,000 in 2014. The Delinquent Returns further falsely reported that STAHL did not receive any business income in any of these years, and failed to include a Schedule C detailing the significant amount of business income that STAHL earned from the Medical Technology Company. STAHL’s failure to report over $21 million in business income to the IRS – first by deliberately failing to file returns, and then by causing the false Delinquent Returns to be filed by the Accountant – resulted in a loss to the IRS of over $6.3 million in taxes due and owing.
* * *
In addition to the prison term, Judge Abrams ordered STAHL, 63, of Boca Raton, Florida, to serve three years of supervised release, and to make court-ordered restitution to the IRS.
Mr. Berman praised the outstanding investigative work of the IRS Criminal Investigation Division in this case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Sarah E. Paul is in charge of the prosecution.
Otsego Home Health Care Company to Pay More Than $700,000 to Resolve False Claims Act LiabilityRead the Press Release
United States Attorney Erica H. MacDonald today announced that Accurate Home Care, LLC (“Accurate Home Care”), a home health care company headquartered in Otsego, Minnesota, has agreed to pay $726,957.59 to resolve federal False Claims Act violations arising from the unlawful submission of claims for payment to Minnesota Medicaid, a jointly funded federal and state health care program.
According to the settlement agreement, Accurate Home Care voluntarily disclosed to the United States that it had submitted claims for payment for home care services to both Minnesota Medicaid and private insurers for the same service, and fraudulently retained full payment from Minnesota Medicaid, even where it was not the primary insurer. Pursuant to the settlement agreement, Accurate Home Care must pay the United States and the State of Minnesota a total of $726,957.59 to resolve the misconduct. Accurate worked cooperatively with the Department of Justice in voluntarily disclosing the false claims. Department of Justice policy encourages self-reporting of fraud and values company cooperation.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter was handled by the U.S. Attorney’s Office for the District of Minnesota, with assistance from the Medicaid Fraud Control Unit of the Minnesota Attorney General’s Office and the Office of Inspector General of the U.S. Department of Health and Human Services.
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Navajo Man Sentenced to Federal Prison for RobberyRead the Press Release
PHOENIX – On March 25, 2019, Kaniel Singer, 35, of Middle Mesa, Ariz., and a member of the Navajo Nation, was sentenced by U.S. District Judge Steven P. Logan to 57 months in prison, followed by a term of three years of supervised release. Singer had previously pleaded guilty to robbery.
On March 22, 2017, while driving across the Navajo Indian Reservation on US-160, the victim sustained a flat tire. While trying to change the tire, and waiting for roadside assistance, Singer pulled up with two unknown males and told the victim he was being robbed. After the victim complied with Singer’s demands by handing over his personal belongings, Singer ordered the victim into the victim’s car and drove off, threatening to kill the victim while traveling at speeds close to 80 mph. When Singer slowed down and turned onto a dirt road, the victim was able to jump out of his vehicle and run to the highway for assistance.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Department of Law Enforcement. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-08113-PCT-SPL
RELEASE NUMBER: 2019-034_Singer
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Morris County Man Sentenced on Child Porn ChargesRead the Press Release
TOPEKA, KAN. - A Morris County man was sentenced Monday to eight years in federal prison for downloading child pornography from the internet, U.S. Attorney Stephen McAllister said. In addition, he was ordered to pay $29,000 in restitution to victims.
Wesley Wagner, 54, White City, Kan., was convicted in October 2018 on one count of receiving child pornography and one count of possessing child pornography.
During trial, the prosecutor presented evidence that the FBI seized a server belonging to a now-defunct website called Playpen that provided users access to child pornography. The FBI used computer forensics to identify hundreds of the site’s users, including Wagner. Based on that information, the FBI obtained a warrant to search the defendant’s home.
McAllister commended the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.
Monongalia County woman sentenced for maintaining a drug houseRead the Press Release
CLARKSBURG, WEST VIRGINIA - Brianna Blackman, of Morgantown, West Virginia, was sentenced today to 14 months incarceration for having a drug-involved premises, United States Attorney Bill Powell announced.
Blackman, also known as “BB,” age 23, pled guilty to one count of “Maintaining a Drug-Involved Premises” in October 2017. Blackman admitted to maintaining an apartment in Rhea Terrace in Fairmont in Marion County, West Virginia for the purpose of distributing oxycodone. The crime occurred from May until December 2016.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, led the investigation. The Task Force consists of the U.S. Drug Enforcement Administration. the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Monongalia County Sheriff’s Office, Morgantown Police Department, the Star City Police Department, the West Virginia State Police, the West Virginia University Police Department, the Granville Police Department, and the Monongalia County Prosecuting Attorney’s Office.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Irene M. Keeley presided.
Monongalia County man admits to role in a drug distribution operation in Monongalia CountyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Preston Jeffrey Smith, of Morgantown, West Virginia, has admitted to his involvement in a heroin, oxycodone, and cocaine distribution operation, United States Attorney Bill Powell announced.
Smith, age 25, pled guilty to one count of “Aiding and Abetting the False Statement in Connection with the Acquisition of a Firearm.” Smith admitted to making a false statement to purchase a 5.56 mm caliber pistol in May 2018 in Monongalia County.Smith 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 Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Mississippi Man Pleads Guilty to Health Care Fraud, Money Laundering and Tax Evasion Charges for Role in $200 Million Compounding Pharmacy SchemeRead the Press Release
A Hattiesburg, Mississippi man pleaded guilty today for his role in a $200 million compounding pharmacy scheme to defraud health care benefit programs, including TRICARE, which is the program that covers U.S. military service members and their families.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Mike Hurst of the Southern District of Mississippi; Special Agent in Charge Christopher Freeze of the FBI’s Jackson, Mississippi Field Office; Special Agent in Charge Thomas J. Holloman III of IRS Criminal Investigation’s (IRS-CI) Atlanta Field Office and Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office made the announcement.
Glenn Doyle Beach Jr., 46, pleaded guilty to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering and tax evasion, before U.S. District Judge Keith Starrett of the Southern District of Mississippi. Beach was charged in May 2018 in a 26-count indictment and had been scheduled to begin trial today. He is scheduled to be sentenced on July 2, 2019.
“Glenn Doyle Beach and his co-conspirators stole hundreds of millions of dollars from federal health care programs, including TRICARE, which provides benefits to brave members of our military and their families,” said Assistant Attorney General Benczkowski. “The Criminal Division remains dedicated to rooting out and punishing this kind of misconduct, and to protecting America’s important health care programs from fraud and abuse.”
“While our men and women in uniform were defending the freedoms and values we hold dear, this defendant was selfishly stealing precious money and resources from their military healthcare system, TRICARE, to the detriment of us all,” said U.S. Attorney Hurst. “Our investigators and prosecutors are to be commended for their steely resolve in rooting out corruption and administering justice for victims. We will not stop until every last person involved in this criminal scheme has been brought to justice.”
“Fraud schemes of this magnitude disrupt the fabric of our health care system, ultimately damaging our nation's economy and costing taxpayers billions each year,” said FBI Special Agent in Charge Freeze. “Today's guilty plea brings this case one step closer to justice and proves that the collective resources of all partnering agencies will continue to expose these schemes and will actively seek justice for those who participate in them."
Beach was an owner and the managing member of Advantage Pharmacy of Hattiesburg. At the hearing today, Beach admitted his role in a scheme to defraud health care benefit programs, including TRICARE, by marketing medications known as compounded medications, which ordinarily are medications that are specially combined or formulated to meet the individual needs of patients. Beach admitted, however, that through Advantage Pharmacy of Hattiesburg, he formulated compounded medications without regard to the individual needs of the patients, but instead in order to increase reimbursements paid by health care benefit programs. Furthermore, Beach admittedly created a fictitious paper trail to mislead insurance auditors who attempted to uncover the fraud.
Beach further detailed a money laundering and tax evasion scheme that he and other co-conspirators used to conceal the fraudulent proceeds and evade taxes.
From approximately April 2012 through January 2016, health care benefit programs, including TRICARE, reimbursed Advantage Pharmacy and other pharmacies involved in the scheme at least $200 million, Beach admitted. The government seized more than $6 million in cash and other assets from Beach, which will be forfeited in connection with his guilty plea.
Since 2017, 11 other individuals involved in this scheme have pleaded guilty, and one was convicted at trial. The investigation is ongoing.
This case was investigated by the FBI, IRS-CI and DCIS, among other agencies. Trial Attorneys Kate Payerle and Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mary Helen Wall of the Southern District of Mississippi and Sean Welsh of the Western District of Virginia, formerly of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), are prosecuting the case, with the assistance of Trial Attorney Amanda Wick of MLARS.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and U.S. Department of Health and Human Services (HHS) to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Mississippi Man Pleads Guilty to Health Care Fraud, Money Laundering and Tax Evasion Charges for Role in $200 Million Compounding Pharmacy SchemeRead the Press Release
WASHINGTON – A Hattiesburg, Mississippi man pleaded guilty today for his role in a $200 million compounding pharmacy scheme to defraud health care benefit programs, including TRICARE, which is the program that covers U.S. military service members and their families.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Mike Hurst of the Southern District of Mississippi; Special Agent in Charge Christopher Freeze of the FBI’s Jackson, Mississippi Field Office; Special Agent in Charge Thomas J. Holloman III of IRS Criminal Investigation’s (IRS-CI) Atlanta Field Office and Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office made the announcement.
Glenn Doyle Beach Jr., 46, pleaded guilty to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering and tax evasion, before U.S. District Judge Keith Starrett of the Southern District of Mississippi. Beach was charged in May 2018 in a 26-count indictment and had been scheduled to begin trial today. He is scheduled to be sentenced on July 2, 2019.
“Glenn Doyle Beach and his co-conspirators stole hundreds of millions of dollars from federal health care programs, including TRICARE, which provides benefits to brave members of our military and their families,” said Assistant Attorney General Benczkowski. “The Criminal Division remains dedicated to rooting out and punishing this kind of misconduct, and to protecting America’s important health care programs from fraud and abuse.”
“While our men and women in uniform were defending the freedoms and values we hold dear, this defendant was selfishly stealing precious money and resources from their military healthcare system, TRICARE, to the detriment of us all,” said U.S. Attorney Hurst. “Our investigators and prosecutors are to be commended for their steely resolve in rooting out corruption and administering justice for victims. We will not stop until every last person involved in this criminal scheme has been brought to justice.”
“Fraud schemes of this magnitude disrupt the fabric of our health care system, ultimately damaging our nation's economy and costing taxpayers billions each year,” said FBI Special Agent in Charge Freeze. “Today's guilty plea brings this case one step closer to justice and proves that the collective resources of all partnering agencies will continue to expose these schemes and will actively seek justice for those who participate in them."
Beach was an owner and the managing member of Advantage Pharmacy of Hattiesburg. At the hearing today, Beach admitted his role in a scheme to defraud health care benefit programs, including TRICARE, by marketing medications known as compounded medications, which ordinarily are medications that are specially combined or formulated to meet the individual needs of patients. Beach admitted, however, that through Advantage Pharmacy of Hattiesburg, he formulated compounded medications without regard to the individual needs of the patients, but instead in order to increase reimbursements paid by health care benefit programs. Furthermore, Beach admittedly created a fictitious paper trail to mislead insurance auditors who attempted to uncover the fraud.
Beach further detailed a money laundering and tax evasion scheme that he and other co-conspirators used to conceal the fraudulent proceeds and evade taxes.
From approximately April 2012 through January 2016, health care benefit programs, including TRICARE, reimbursed Advantage Pharmacy and other pharmacies involved in the scheme at least $200 million, Beach admitted. The government seized more than $6 million in cash and other assets from Beach, which will be forfeited in connection with his guilty plea.
Since 2017, 11 other individuals involved in this scheme have pleaded guilty, and one was convicted at trial. The investigation is ongoing.
This case was investigated by the FBI, IRS-CI and DCIS, among other agencies. Trial Attorneys Kate Payerle and Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mary Helen Wall of the Southern District of Mississippi and Sean Welsh of the Western District of Virginia, formerly of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), are prosecuting the case, with the assistance of Trial Attorney Amanda Wick of MLARS.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and U.S. Department of Health and Human Services (HHS) to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Middlesex County, New Jersey, Tax Preparer Admits FraudRead the Press Release
NEWARK, N.J. – A Keasbey, New Jersey, tax preparer today admitted filing a false tax return for two clients and failing to file a tax return, U.S. Attorney Craig Carpenito announced.
David Patterson, 37, was indicted in October 2018 and pleaded guilty today before U.S. District Judge Esther Salas in Newark federal court to Count 24, aiding and assisting in the preparation of a false income tax return, and Count 25, failure to file a tax return for 2013, of the superseding indictment.
According to documents filed in this case and statements made in court:
Patterson owned D&D Tax Service LLC, a tax preparation business located in Keasbey. He admitted preparing a fraudulent tax return on behalf of two clients for tax year 2012 in which he falsified the clients’ medical and dental expenses, gifts to charity and unreimbursed employee expenses. He also admitted failing to file an individual tax return and pay federal income taxes for calendar year 2013.
The false filing count carries a maximum potential penalty of three years in prison and a $250,000 fine. The failure to file count carries a maximum potential penalty of up to one year in prison and a $100,000 fine. For purposes of sentencing, Patterson admitted to aiding and assisting in the preparation of 23 additional false tax returns and failing to file tax returns for calendar years 2014 and 2015, resulting in an aggregate loss of $290,321. Sentencing is scheduled for Aug. 12, 2019.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark, the Department of Justice Tax Division, and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Deborah J. Gannett of the U.S. Attorney’s Office Asset Recovery and Money Laundering Unit and Trial Attorney Eric Powers of the Department of Justice Tax Division.
Defense counsel: James Friedman Esq., New Brunswick, New Jersey
Meridian Man Pleads Guilty to Cocaine TraffickingRead the Press Release
Jackson, Miss. – Kenneth Dewayne Williams, 45, of Meridian, pled guilty today before Chief U.S. District Judge Daniel P. Jordan III to possession with intent to distribute 500 grams of a detectible amount of cocaine hydrochloride, announced U.S. Attorney Mike Hurst and Drug Enforcement Administration (DEA) Assistant Special Agent in Charge J. Derryle Smith.
The case is the result of an extensive investigation dubbed Operation "Deadly Dose" which began as an initiative targeting illegal narcotics distribution in central Mississippi that involved the distribution of heroin and cocaine. During the investigation, agents learned of an upcoming cocaine transaction between Williams and a coconspirator. On December 4, 2017, agents conducted a traffic stop of Williams on Interstate 20 east of Jackson, where agents seized approximately 2 kilograms of cocaine and $17,000.00.
Williams will be sentenced by Judge Jordan on June 28, 2019, at 9:00 a.m. He faces a maximum penalty of 40 years in prison and a $5,000,000 fine, followed by a term of supervised release of at least 4 years.
The case was investigated by the Drug Enforcement Administration, the Mississippi Bureau of Narcotics, the Bureau of Alcohol Tobacco Firearms and Explosives, the U.S. Marshals Service, the Hinds County Sheriff’s Office, the Jackson Police Department, and the Internal Revenue Service. It is being prosecuted by Assistant United States Attorney Chris Wansley.
Members of Fraudulent Jamaican Sweepstakes Ring Sentenced for Conspiracy, Money Laundering and Aggravated Identity TheftRead the Press Release
Orlando, Florida – United States District Judge Roy B. Dalton has sentenced Shameer Hassan (45, Kissimmee) and Nadine Bromfield Alexander (39, Orlando) to 10 years and 7 years in federal prison, respectively, for conspiracy to commit wire fraud, conspiracy to commit money laundering, and aggravated identity theft. Hassan was sentenced to an additional 2 years’ imprisonment for money laundering. The court also ordered Hassan and Alexander to pay $150,314 in restitution to the identified victims of the fraud scheme.
A federal jury found Hassan and Alexander guilty on November 6, 2018.
According to testimony and evidence presented at trial, Hassan and Alexander participated in a fraudulent sweepstakes scheme that operated in the Middle District of Florida and Jamaica. Members of the conspiracy targeted victims throughout the United States, many of whom were elderly, and falsely informed them that they had won a multi-million dollar prize in a sweepstakes contest. The conspirators instructed the victims to wire funds to “representatives” in Orlando in order to prepay fees and taxes associated with the prize. Upon receipt of the funds, other members of the conspiracy converted the funds to money orders and cash. They then paid Hassan, who operated several money transfer businesses, to wire the fraud proceeds to Jamaica.
Alexander stole the personal identity information belonging to more than 35 individuals from her workplace and gave that information to her co-conspirators. Hassan then used the stolen identity information to launder the funds. In less than two years, Hassan and his co-conspirators transferred $4.7 million in funds, obtained from victims, to conspirators in Jamaica.
The court previously sentenced the following members of the conspiracy:
Charlton Morris (39, Casselberry) pleaded guilty to conspiracy to commit money laundering. He was sentenced to 10 years, 1 month in prison.
Robert Blake Madurie (29, Jamaica) pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft. He was sentenced to eight years in prison.
Danny Lopez (32, Orlando) pleaded guilty to conspiracy to commit wire fraud. He was sentenced to seven years and eight months in prison.
Treysier LaPalme (25, Orlando) pleaded guilty to conspiracy to commit wire fraud. He was sentenced to seven years and three three months in prison.
Oral Anthony Stewart (35, Lithonia, Georgia) pleaded guilty to conspiracy to commit wire fraud. He was sentenced to five years in prison.
This case was investigated by the Department of Homeland Security and the SCIRS Federal Financial Crimes Task Force, whose members include the IRS- Criminal Investigation, the Brevard County Sheriff’s Office, the St. Cloud Police Department, the Osceola County Sheriff’s Office, the Winter Park Police Department, the Casselberry Police Department, the Kissimmee Police Department, the Maitland Police Department, the Palm Bay Police Department, and the U.S. Secret Service. It was prosecuted by Assistant United States Attorneys Karen L. Gable and Roger B. Handberg.
McAlester Man Pleads Guilty to Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Ronnie Lee Faulconer, age 54, of McAlester, Oklahoma, entered a guilty plea to Felon In Possession Of Firearm And Ammunition, in violation of Title 18, United States Code, Sections 992(g)(1), 924(a)(2) and 924(e), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine, or both. However, if the court deems the defendant to be an Armed Career Criminal, the offense is punishable by not less than 15 years imprisonment.
The Indictment alleges that on or about December 9, 2018, in the Eastern District of Oklahoma the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the McIntosh County Sheriff’s Office and the Federal Bureau of Investigation.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Sarah McAmis represented the United States.
Maryland Sex Offender Sentenced to 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Freddie Emerson Crockett, age 40, of Earleville, Maryland, to 10 years in prison, followed by lifetime supervised release for possession of child pornography. In imposing this sentence, the Court also found that Crockett had transported child pornography. Crockett will also pay $500 in restitution to one of the victims depicted in the images of child pornography that he possessed and transported. In addition, upon his release from prison, Crockett must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, Crockett used two accounts on a social networking account to store, transport, and possess child pornography. Specifically, between October 20, 2016 and October 24, 2017, Crockett used several email addresses to upload child pornography to his social networking accounts. On October 3, 2017, Yahoo deactivated one of Crockett’s accounts, and the associated email address, for possession of child pornography. The next day, Yahoo reported to the National Center for Missing and Exploited Children (NCMEC) that someone using that email address had uploaded 133 files containing possible child pornography. Yahoo provided additional information to NCMEC, including the phone number and other email addresses associated with the owner of the account, as well as reporting Crockett’s possible association with the account. On October 17, 2017, NCMEC provided Yahoo’s report to the Maryland State Police. On October 3, 2017, the same day Yahoo deactivated one of his accounts for uploading and possessing child pornography, Crockett created a new account with a new email address, and used that account to upload additional images of child pornography. Yahoo again filed a report with NCMEC, who also provided that report to the Maryland State Police.
Further investigation led the Maryland State Police to execute a search warrant at Crockett’s residence in Earleville on November 22, 2017. An on-scene forensic preview of the memory card from Crockett’s cell phone located several images of child pornography. Crockett’s phone, the memory card, and his laptop were seized. A forensic examination of those items revealed more than 75 images depicting child pornography, including several images of a prepubescent female engaged in sexually explicit conduct.
Crockett was already a sex offender based on two 2010 convictions in the Circuit Court for Cecil County for surreptitiously recording 13 and 16-year-old females while they were changing clothes in a bathroom at his residence.
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 Attorney’s 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.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended HSI-Baltimore and the Maryland State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Judson T. Mihok, who prosecuted the federal case.
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Lincoln Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Nicole Renee Kemp, 42, of Lincoln, was sentenced today to five years and three months, (63 months) in federal prison by Senior United States District Richard G. Kopf for conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine mixture and 50 grams or more of actual (pure) methamphetamine. Following the prison term, Kemp will serve three years on supervised release.
Information provided to law enforcement indicated that between July of 2016 and September of 2017, Kemp was involved in the distribution of at least 1.5 kilograms (approximately three pounds) of methamphetamine mixture and at least 150 grams (over five ounces) of actual (pure) methamphetamine.
In August of 2017, Kemp was stopped by the Lincoln Police Department where officers found over a pound of methamphetamine in the car she was driving. At the time of that stop, Kemp told officers she did not know there was methamphetamine in the car, but she said her co-defendant, Bryant Omonttez Williams, was in the car earlier moving a box around in the backseat.
In September of 2017, a confidential informant, working with investigators, contacted Kemp. Kemp told the informant that Williams had methamphetamine for sale. Williams provided the informant with approximately 1/8 ounce of methamphetamine. On the following day, Kemp met with the informant and collected the money owed for the methamphetamine provided on the previous day by Williams.
Williams also pleaded guilty to the conspiracy charge and was sentenced in October of 2018 to 262 months in federal prison.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lewis County man sentenced for drug and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – John David Davisson, of Weston, West Virginia, was sentenced today to 123 months incarceration for firearms and methamphetamine distribution charges, United States Attorney Bill Powell announced.
Davisson, age 28, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” and one count of “Carry a Firearm During a Drug Trafficking Crime” in October 2018. Davisson admitted to possessing a .45-caliber pistol and two 9mm pistols while possessing crystal methamphetamine, also known as ice, in October 2017 in Lewis County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives and the Lewis County Sheriff’s Office investigated.
U.S. District Judge John Preston Bailey presided.
Leader of Hooligans Motorcycle Gang Admits Stealing Jeeps throughout San Diego CountyRead the Press Release
Assistant U.S. Attorneys Andrew J. Galvin (619) 546-9721 and Joseph S. Green (619) 546-6955
NEWS RELEASE SUMMARY – March 26, 2019
SAN DIEGO – Jimmy Josue Martinez, a leader of the Hooligans motorcycle gang, pleaded guilty today and admitted to participating in a sophisticated scheme to steal dozens of Jeep Wranglers in San Diego County using handheld electronic devices and stolen codes.
According to court records, the Hooligans are responsible for the theft of more than 150 Jeep Wranglers worth approximately $4.5 million within San Diego County since 2014. The Hooligans used high-tech methods to disable security systems and steal Jeeps in just a few minutes, in the middle of the night, while unsuspecting owners slept nearby. After stealing the Jeeps in San Diego County, the Hooligans transported them to Tijuana, Mexico, where the vehicles were sold or stripped for parts.
In his plea agreement, Martinez admitted to stealing Jeeps in Pacific Beach, Serra Mesa, Chula Vista, Mission Valley, Ocean Beach, Hillcrest and North Park. Martinez also admitted to leading one of the Hooligans theft crews, which would target a specific Jeep days before the actual theft would take place. Martinez and members of his theft crew obtained the vehicle identification number in advance and then managed to get secret key codes, which allowed them to create a duplicate key for that particular Jeep. Then, during the theft, they disabled the alarm system, programmed the duplicate key using a handheld electronic device, and quietly drove away without notice.
In November 2014, San Diego Police Department patrol units attempted to stop Martinez after he participated in the theft of a Jeep in Mira Mesa. Martinez failed to pull over and drove south along Interstate 805 at speeds exceeding 120 miles per hour. Customs and Border Patrol officers unsuccessfully attempted to stop Martinez at the United States/Mexico border. In his plea agreement, Martinez admitted to ramming a vehicle stopped in front of him multiple times in order to maneuver around concrete barriers and drive south into Mexico.
“The joy ride is over for Mr. Martinez,” said U.S. Attorney Robert Brewer. “These thefts were audacious and sophisticated and created hassle and heartache for scores of Jeep owners. I congratulate prosecutors Andrew Galvin and Joseph S. Green, the FBI and members of the Regional Auto Theft Task Force for putting together a strong case against a gang that, unfortunately, has lived up to its name.”
“This case is a reminder that our proximity to the international border provides increased opportunity for transnational organized crime,” said FBI Acting Special Agent in Charge Suzanne Turner. “The Hooligans crime group took advantage of this proximity by stealing millions of dollars’ worth of vehicles from San Diegans in order to hide, chop, sell, and profit from those vehicles in Mexico. The FBI worked day and night, alongside our partners at the Regional Auto Theft Task Force (RATT), to bring Martinez, the leader of this transnational organization, to justice.”
Martinez and eight other members of the Hooligans were charged in a grand jury indictment in May 2017. As part of his plea, Martinez agreed to pay at least $246,396 in restitution. Martinez will appear for sentencing on June 24, 2019 at 10:30 a.m. before U.S. District Judge John A. Houston. Of the nine Hooligans charged, six have pleaded guilty and three remain fugitives.
DEFENDANT: Case Number 17-CR-1314-JAH
Jimmy Josue Martinez Age: 33 Tijuana, Mexico
SUMMARY OF CHARGES
Conspiracy to Commit Transportation of Stolen Vehicles in Foreign Commerce – Title, 18 U.S.C., Section 371
Maximum penalty: 5 years’ imprisonment; $250,000 fine; restitution.
AGENCIES
Federal Bureau of Investigation
Regional Auto Theft Task Force, which includes the following agencies:
U.S. Border Patrol
California Highway Patrol
National Insurance Crime Bureau
California Department of Insurance
California Department of Motor Vehicles
San Diego County District Attorney’s Office
San Diego County Probation Department
San Diego County Sheriff’s Department
ICE Enforcement and Removal Operations
and police departments from La Mesa, Chula Vista, National City, Oceanside and San DiegoLake Charles man sentenced to 57 months in prison for distributing methamphetamineRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that Paul Loudin, 40, of Lake Charles, was sentenced Monday to four years and nine months in prison by U.S. District Judge Donald E. Walter for distribution of methamphetamine.
Law enforcement agents executed a search warrant on March 14, 2017 at Loudin’s home in Lake Charles and found approximately 586 grams of methamphetamine and 728 ecstasy pills. Loudin admitted during his guilty plea on December 14, 2018 that he was aware the drugs were located at his residence and that he intended to distribute them.
Homeland Security Investigations and the Combine Anti-Drug Task Force conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Keene Man Sentenced to 20 Years for Sexually Exploiting a ChildRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Benjamin Gagnon, 35, of Keene, New Hampshire, was sentenced today in U.S. District Court in Concord, New Hampshire by Judge Joseph A. DiClerico, Jr. to 20 years in prison and eight years of supervised release for sexual exploitation of a minor. Gagnon pleaded guilty to the charge on September 13, 2018.
According to court records, in January 2017, Gagnon, who was in New Hampshire, persuaded and induced a minor female in Texas to create still images and videos depicting the minor engaging in sexually explicit conduct. The minor then transmitted the images and videos to Gagnon over the internet. Gagnon later uploaded the images to an online account, where they were found by investigators in August 2017.
“The defendant in this case used online messaging applications to target children and sexually exploit vulnerable victims, a dangerous type of criminal threat that all parents should understand and about which they should educate their children,” said Peter C. Fitzhugh, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Boston. “With any Internet connection or a smart phone, even the youngest of children are susceptible to this type of trickery and criminal exploitation. Cases like this are why HSI will continue to join forces with the New Hampshire Internet Crimes Against Children (ICAC) Task Force to combat the sexual exploitation of children.”
The investigation was conducted by HSI; the Keene Police Department; and the ICAC Task Forces located in New Hampshire, North Carolina, and Houston, Texas.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Justice Department Files Statement of Interest in New York Church Religious Land Use CaseRead the Press Release
WASHINGTON – The Justice Department today filed a Statement of Interest in U.S. District Court for the Northern District of New York supporting a church’s claim that the Village of Canton, New York, violated its rights under the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) by barring it from locating its church in the Village’s commercial zoning district.
“Federal law protects the ability of religious groups of all faiths to locate and grow their worship sites in communities across the country,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “It includes a requirement that religious assemblies be treated equally with nonreligious assemblies. The Department of Justice is committed to enforcing this and other federal protections for religious freedom.”
“The right to the free exercise of religion includes the freedom to assemble in a house of worship,” said Grant C. Jaquith, United States Attorney for the Northern District of New York. “When faith communities face discrimination through zoning or land use regulation, we will use the full force of federal law to ensure that this fundamental right is not unlawfully infringed.”
The case, Christian Fellowship Centers of New York, Inc. v. Village of Canton, involves a congregation that purchased property in the Village’s commercial zoning district to use for worship. After the Village denied zoning approval, the church filed a lawsuit alleging that the Village violated RLUIPA because the Village permits other assemblies in the commercial district, including theaters, fraternal organizations and social clubs. The church also stated in court filings that it is seeking to hold worship services this Sunday, March 31, at the property it purchased in the commercial zoning district. The church has no other location options to hold its religious services on that date.
The United States’ Statement of Interest supports the Christian Fellowship Centers of New York Inc.’s argument that RLUIPA’s “equal terms” provision treated the church less favorably than the various other groups permitted in the district.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. Last year, the Justice Department announced its Place to Worship Initiative, which focusses on RLUIPA’s provisions that protect the rights of religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together Department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or on the complaint portal on the Place to Worship Initiative website.