Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
1 May 2019
ATF Thwarts Felon’s Plan to Hide Firearms EvidenceRead the Press Release
PITTSBURGH - A resident of Aliquippa, Pennsylvania, pleaded guilty in federal court to charges of illegally possessing firearms and attempting to tamper with evidence, United States Attorney Scott W. Brady announced today.
Nicholas John Padak, 31, pleaded guilty yesterday to four counts before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that a defendant named Erik Lowry operated a gun store known as Pittsburgh Tactical Firearms (PTF). Gun dealers are required to keep records on every firearm that is acquired or disposed of by the dealership, including those that are brought in for sale, trade, or repair. An ATF review of PTF’s books showed that defendant Nicholas Padak had brought two military-style rifles in for repair. Padak has a February 19, 2014 felony conviction in Beaver County for Theft by Unlawful Taking, which precludes him from lawfully possessing a firearm or ammunition.
ATF agents approached Padak on April 11, 2016, away from his residence, and he agreed to go with them to turn over his illegal firearms. Padak then surreptitiously phoned his mother, and agents at the home Padak shared with his mother observed her carrying multiple guns outside in an effort to hide them in the trunk of a car. ATF was able to seize the six firearms and ammunition belonging to Padak before they were removed from the premises. One of those guns was a 300 Blackout caliber semi-automatic Anderson short-barreled rifle, which is required to be registered with the National Firearms Registration and Transfer Record, but was not. Padak also possessed a seventh firearm, which he purchased illegally on April 30, 2015, and later sold after picking it up from Lowry on July 30, 2015.
Erik Lowry, of McKeesport, was prosecuted and sentenced in January 2018 to 30 months in prison, followed by three years supervised release, and a fine of $30,000, for possessing an unregistered firearm, witness tampering, and attempting to tamper with evidence. Renaissance Electric, LLC, aka Pittsburgh Tactical Firearms, was also prosecuted and is no longer doing business.
Judge Ambrose scheduled Padak’s sentencing for September 3, 2019 at 10 a.m. The law provides for the forfeiture and destruction of the firearms and ammunition, as well as a total sentence of up to 50 years in prison, a fine of up to $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation leading to the successful conviction of both Lowry and Padak. This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The government has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Attorney General announced the reinvigoration of PSN and all U.S. Attorney’s Offices were directed to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
30 April 2019
West Virginia physician found guilty of illegally distributing drugsRead the Press Release
WHEELING, WEST VIRGINIA – Dr. George P. Naum, of Wheeling, West Virginia, was found guilty today of illegally distributing controlled substances, United States Attorney Bill Powell announced.
After a six-day trial, a jury found Naum, guilty of one count of “Conspiracy to Distribute Controlled Substances Outside the Bounds of Professional Medical Practice,” and four counts of “Aiding and Abetting the Distribution of Controlled Substances Outside the Bounds of Professional Medical Practice.” He was found not guilty of one count of “Aiding and Abetting the Distribution of Controlled Substances Outside the Bounds of Professional Medical Practice.” Naum, age 60, conspired with others to illegally distribute controlled substances from a drug treatment center, Advance Healthcare, Inc., in Weirton, West Virginia from 2008 to 2016.
“Successful prosecutions like this one are complex, time consuming, and require great effort by talented prosecutors and law enforcement agents. The vast majority of medical providers are honorable and law abiding professionals. However, our determination to bring drug dealing doctors and other medical providers who violate the criminal laws and simultaneously ignore their professional obligations to do no harm is unwavering,” said Powell.
Naum faces up to 10 years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Sarah E. Wagner and Robert H. McWilliams, Jr. are prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Federal Bureau of Investigation, the Office of Inspector General at the U.S. Department of Health and Human Services, WV Offices of the Insurance Commissioner Fraud Division, WV Medicaid Fraud Control Unit, Office of Ohio Attorney General Health Care Fraud, Ohio Bureau of Workers’ Compensation, the Hancock-Brook-Weirton Drug Task Force, a HIDTA-funded initiative, the Greater Harrison County Drug Task Force, a HIDTA-funded initiative, West Virginia State Police, the Hancock County Sheriff’s Office, and the Weirton Police Department investigated.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
Senior U.S. District Judge Irene M. Keeley presided.
Union County, New Jersey, Man Charged with Armed Robbery of Business OwnerRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was arrested and charged today for allegedly robbing a New Jersey business owner at gunpoint in February 2019, U.S. Attorney Craig Carpenito announced.
Raymond Scura, 29, of Kenilworth, New Jersey, is charged by complaint with one count of Hobbs Act robbery and one count of brandishing a firearm during a crime of violence. He is scheduled to appear this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court. Scura previously was arrested and charged in March 2019 with wire fraud and aggravated identity theft.
According to the complaints and other documents filed in this case:
In February 2019, Scura was a customer of an internet-based business owned and operated by the victim. Scura wrote at least one fraudulent check to the victim to pay for the services of the business. When the victim insisted on cash payment, Scura drove with the victim to a bank, where Scura brandished a firearm, threatened to kill the victim, and demanded that the victim deposit a fraudulent check into the victim’s bank account and withdraw the same amount of money as set forth in the check. Scura led the victim to an ATM, where he directed the victim to insert the victim’s bank card into the ATM, asked for the victim’s PIN, input the PIN himself, and deposited the check. Scura then led the victim to a teller, where the victim withdrew the money as directed. Scura and the victim left the bank, where Scura demanded, at gunpoint, that the victim hand him the money withdrawn at the bank.
Scura was charged by complaint in March 2019 with allegedly defrauding various individuals and entities by obtaining and attempting to obtain merchandise, services, and cash. In some circumstances, Scura obtained goods and services, including a country club membership, limousine services, luxury hotel expenses, wine, and a Rolex watch, by charging such items to credit card accounts that were not his own and which he did not have authorization to access or use. Scura also wrote and presented personal checks both in his own name and in the name of victims from accounts Scura knew were either closed or held insufficient funds to cover the checks.
The count of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison, which must be served consecutively to any other sentence imposed. The Hobbs Act robbery charge carries a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The wire fraud affecting a financial institution charge carries a statutory maximum of 30 years in prison and a $1 million fine, and the aggravated identity theft charge carries a mandatory minimum sentence of two years in prison, which must be served consecutively to any other sentence imposed.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and members of the Belleville Police Department, under the direction of Chief of Police Mark Minichini, with the investigation leading to the charges against Scura. He also thanked the Summit Police Department, the Union County Prosecutor’s Office, the Burlington County Prosecutor’s Office, and the Evesham Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office’s Criminal Division in Newark.
The charges and allegations against Scura are merely accusations, and he is presumed innocent unless and until proven guilty.
Defense counsel: Anthony Iacullo Esq., Clifton, New Jersey
Undocumented Alien Pleads Guilty to Assaulting Federal OfficerRead the Press Release
LAREDO, Texas – A 39-year-old Mexican national has just admitted he assaulted a Border Patrol (BP) agent with a flashlight, announced U.S. Attorney Ryan K. Patrick.
Melecio Lopez-Hernandez was arrested Feb. 7, 2019, after a BP agent encountered him walking through the brush south of Freer. He began to struggle as the agent attempted to detain him, during which time Lopez-Hernandez dislodged a flashlight that was clipped to the agent’s outer vest.
After verbally threatening him, Lopez-Hernandez then struck the agent in the head with the flashlight. The agent sustained injuries from the impact.
Sentencing has been set for Sept. 17, 2019, before U.S. District Judge Marina Garcia Marmolejo. At that time, Lopez-Hernandez faces up to 20 years in prison and a possible $250,000 fine.
He has been and will remain in custody pending that hearing
The FBI and Border Patrol conducted the investigation. Assistant U.S. Attorney Jennifer Day is prosecuting the case.
USAO Hosts Roundtable on Sexual Harassment in HousingRead the Press Release
HOUSTON - The U.S. Attorney’s Office (USAO) for the Southern District of Texas and the Department of Justice’s (DOJ) Civil Rights Division hosted a roundtable today for community organizations to discuss the problem of sexual harassment in housing, announced U.S. Attorney Ryan K. Patrick.
The event included personnel from legal aid offices, fair housing organizations, shelters and transitional housing providers, who often work with vulnerable populations and are most likely to become victims of such harassment.
The DOJ, through USAOs and the Civil Rights Division, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Sexual harassment is a form of sex discrimination the law prohibits.
“Sexual harassment in housing - which typically involves a landlord extorting sexual favors from vulnerable tenants - is an egregious violation of the Fair Housing Act,” said Patrick. “My office is dedicated to uncovering such violations where they exist and using every available tool to stop this unlawful and despicable behavior.”
The roundtable is part of DOJ’s Sexual Harassment in Housing Initiative. It seeks to identify barriers to reporting sexual harassment in housing, increase awareness of enforcement efforts - both among survivors and those to whom they report - and collaborate with federal, state and local partners to increase reporting and help survivors quickly and easily connect with federal resources.
The USAO is working closely with the Civil Rights Division to ensure people are aware of options to help victims experiencing sexual harassment or who experienced sexual harassment in housing in the past. Today’s roundtable was just such an example designed to increase awareness and build strong partnerships in the community and combat this problem together.
While most people are familiar with the problem of sexual harassment in the workplace, harassment also occurs in housing which the Fair Housing Act prohibits. DOJ brings cases each year involving egregious conduct, including allegations that defendants have exposed themselves sexually to current or prospective tenants, requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants and evicted tenants who resisted their sexual overtures.
Unfortunately, many instances of sexual harassment in housing continue to go unreported. The investigations frequently uncover sexual harassment that has been ongoing for years or decades and identify numerous victims who never reported the conduct to federal authorities.
In October 2017, the Justice Department launched the initiative to combat sexual harassment in housing. In April 2018, the Department announced the nationwide rollout of the initiative, including three major components: a new joint Task Force with the Department of Housing and Urban Development to combat sexual harassment in housing, an outreach toolkit to leverage the Department’s nationwide network of U.S. Attorney’s Offices, and a public awareness campaign, including the launch of a national Public Service Announcement.
Since launching the initiative, the Justice Department has filed nine lawsuits alleging a pattern or practice of sexual harassment in housing. The Justice Department has filed or settled 14 sexual harassment cases since January 2017, and has recovered over $2.2 million for victims of sexual harassment in housing.
DOJ encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling 844-380-6178 or emailing them.
Two Miami Men Plead Guilty to Aggravated Identity TheftRead the Press Release
Gulfport, Miss. – Alexey Aguilera, 38, and Jorge Alberto Perez, 57, both of Miami, Florida, pled guilty today before U.S. District Judge Sul Ozerden to aggravated identity theft, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans.
On February 17, 2018, Aguilera and Perez were detained by the Gulfport Police Department on suspicion of credit card fraud. During the course of the investigation, it was discovered that Aguilera was in possession of illegally obtained credit card account information, and Perez was in possession of a fraudulent credit card containing illegally obtained credit card account information.
Aguilera will be sentenced by Judge Ozerden on July 31, 2019, at 10:00 a.m., and Perez will be sentenced on August 8, 2019, at 9:00 a.m. Both defendants face a mandatory penalty of 2 years in prison and a $250,000 fine.
The Gulfport Police Department and Department of Homeland Security investigated the case. The case is being prosecuted by Special Assistant United States Attorney Joshua Paul Fortenberry.
Two Men Sentenced for Cocaine ConspiracyRead the Press Release
BOSTON – Two men have been sentenced in federal court in Boston for their roles in a cocaine conspiracy operating in and around the Taunton and Worcester areas.
Angel Oyola, 36, of Caguas, Puerto Rico, was sentenced yesterday by U.S. Senior District Court Judge Douglas P. Woodlock to two years in prison and three years of supervised release. In January 2019, Oyola pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine.
Luis Elias, 44, of Worcester, was sentenced today by Judge Woodlock to 78 months in prison and four years of supervised release. In January 2019, Elias pleaded guilty to one count of conspiracy to distribute and possession with intent to distribute 500 grams or more of cocaine and one count of conspiracy to launder monetary instruments.
Oyola, Elias, and eight co-defendants, were charged in May 2018 for their roles in a large scale cocaine conspiracy operating in and around the Taunton and Worcester areas. The charges were a culmination of a nine-month investigation aimed at attacking the increased volume of cocaine flooding southern and central Massachusetts. The defendants allegedly controlled and managed a lucrative and sophisticated drug trafficking and distribution ring in the region.
In November 2017, Oyola brokered and coordinated a transaction for nine kilograms of cocaine, which were shipped from Puerto Rico to Massachusetts. Elias received multiple kilograms of cocaine when they were shipped from Puerto Rico to Worcester and also shipped and carried drug proceeds back down to Puerto Rico. In January 2018, Elias was stopped at the San Juan International Airport with $41,700 in U.S. currency in his luggage.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Bristol County District Attorney Thomas Quinn; and Fairhaven Police Chief Michael Myers made the announcement today. Assistant U.S. Attorney Lauren Graber of Lelling’s Narcotics and Money Laundering Unit is prosecuting the cases.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Costa Rican Residents Sentenced to Lengthy Prison Terms in Connection with $10 Million International Telemarketing SchemeRead the Press Release
Two individuals from Costa Rica were sentenced to 25 and 20 years in prison today for their roles in a $10 million telemarketing scheme that defrauded primarily elderly victims in the United States from call centers in Costa Rica.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray of the Western District of North Carolina, Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service’s Charlotte Division, Acting Special Agent in Charge William Cheung of the IRS Criminal Investigation’s (CI) Cincinnati Field Office and Special Agent in Charge John Strong of the FBI’s Charlotte Field Office made the announcement.
Andrew Smith, 46, and Christopher Lee Griffin, 45, both of San Jose, Costa Rica, were sentenced by U.S. District Judge Robert J. Conrad of the Western District of North Carolina to 25 years and 20 years in prison, respectively. Judge Conrad also ordered Smith to pay $10,222,838.76 in restitution to be paid jointly and severally with his co-conspirators and forfeit $406,324.96. Griffin was ordered to pay $9,612,590.39 in restitution to be paid jointly and severally with his co-conspirators and forfeit $182,439. Following a three-day jury trial in February 2018, Smith and Griffin were each convicted of one count of conspiracy to commit wire fraud, eight counts of wire fraud, one count of conspiracy to commit money laundering, and seven counts of international money laundering.
“Andrew Smith and Christopher Lee Griffin participated in a deplorable scam to defraud hard-working elderly Americans out of millions of dollars,” said Assistant Attorney General Benczkowski. “The severe sentences imposed today represent a significant victory in our continuing efforts to fight elder fraud and protect some of the most vulnerable members of the U.S. public. These sentences should serve as a strong deterrent to anyone seeking to enrich themselves by taking part in similar scams.”
“Smith and Griffin used shameless tricks and brazen lies to convince victims their dream of financial security had come true. That dream soon turned into a devastating nightmare, one that took a financial and emotional toll on the victims, many of whom were elderly,” said U.S. Attorney Murray. “The depravity of this scheme is reflected in the sentence handed down to these two criminals, for it takes a special kind of wickedness to steal from the elderly. Today’s sentence also underscores our commitment to stopping financial scams and holding offenders accountable for their actions, no matter where they are.”
“We are proud to work alongside our federal law enforcement partners in efforts to target those individuals who take advantage of the American public, especially our vulnerable older Americans, for illegal profits,” said Inspector in Charge McGinnis. “Anyone who engages in deceptive practices like this should know they will not go undetected and will be held accountable, regardless of where they are.”
“Quite simply, the conduct in this case is egregious. This investigation uncovered a fraudulent telemarketing scheme that generated millions of dollars through a web of financial lies that preyed on countless elderly victims, all so these defendants could line their pockets with stolen money,” said IRS-CI Acting Special Agent in Charge Cheung. “These types of investigations are often solved most efficiently through a multiple-agency approach to crime fighting.”
“Years ago, our parents taught us not to talk to strangers. Their advice has proven to be timeless,” said FBI Special Agent in Charge Strong. “Strangers are reaching out to us on social media, sending us emails, calling our homes and cell phones. If you fall for a scam, you can bet your life, they will call you again. They might have a different sales pitch or a sob story, but they are the same crooks. These prison sentences should serve as a warning to the thieves, the FBI and our law enforcement partners will work tirelessly to find you and put you out of business for good.”
According to evidence presented at trial, both Smith and Griffin worked in a call center in Costa Rica in which conspirators, who posed as representatives of the U.S. Securities and Exchange Commission and the Federal Trade Commission (FTC), contacted victims in the United States to tell them that that they had won a substantial “sweepstakes” prize. After convincing victims, many of whom were elderly, that they stood to receive a significant financial reward, the conspirators told victims that they needed to make a series of up-front payments before collecting their supposed prize, purportedly for items like insurance fees, taxes and import fees. Conspirators used a variety of means to conceal their true identities, such as Voice over Internet Protocols, which made it appear that they were calling from Washington, D.C., and other places in the United States. According to trial testimony, one elderly victim who indicated she was going to stop paying was warned by a conspirator that they knew where she and her family lived.
Smith and Griffin arranged for victims to transmit payments through international wire transfers directly to Costa Rica or through “runners,” who collected money from victims in the United States and forwarded payment to Smith, Griffin and others in Costa Rica, according to evidence presented at trial. Runners dispatched by Smith and his co-conspirators met elderly victims at their homes to collect bags of cash, which they in turn remitted to Costa Rica, the evidence showed.
Smith, Griffin and their conspirators stole more than $10 million from victims, the evidence showed.
This case was investigated by the U.S. Postal Inspection Service, IRS-CI and the FBI, with assistance from the FTC and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The case is being prosecuted by Trial Attorneys William Bowne and Jennifer Farer and Assistant Chief Anna Kaminska of the Criminal Division’s Fraud Section. The U.S. Attorney’s Office for the Western District of North Carolina provided substantial assistance with this matter. The Criminal Division’s Office of International Affairs, U.S. Department of State’s Diplomatic Security Service and Bureau of Consular Affairs, along with government authorities in Costa Rica, provided critical assistance with the extradition of these defendants.
Treasurer of Hannibal Church Sentenced for Wire FraudRead the Press Release
St. Louis, MO – Donald Ray White, 69, Hannibal, MO, was sentenced to a year and a day in prison and ordered to pay restitution in the amount of $289,412.02 for embezzling monies from Antioch Baptist Church of Hannibal in which he was the treasurer in a scheme that lasted over two decades.
As treasurer of Antioch Baptist Church of Hannibal, White independently oversaw the church’s bank account. In this role, White was an authorized signatory on the bank account, made the majority of all deposits into the checking account, and was required to submit payments on behalf of the church. White was not entitled to a salary or payment for his services to the church. Investigation confirmed that while serving as treasurer, White fraudulently used the bank’s checking account to issue checks to himself and to make purchases on his behalf and the behalf of others.
Donald Ray White pleaded guilty in federal court to one felony count of wire fraud on January 4, 2019, and was sentenced today.
“Today’s sentence is the culmination of hard work and focused dedication by the Ralls County Sheriff’s Office and Hannibal Police Department,” said U.S. Attorney Jeff Jensen.
After the sentence, Ralls County Sheriff Gerry Dinwiddie echoed U.S. Attorney Jensen’s comments. He also recognized the members of the Antioch Baptist Church of Hannibal. “The strength of this church community and its members has been exemplary. They were absolutely critical in uncovering this fraud and have worked tirelessly to not let it define or diminish the church or themselves.”
The Federal Bureau of Investigation investigated this case along with the Ralls County Sheriff’s Department, the Hannibal Police Department and Bureau of Alcohol, Tobacco, Firearms & Explosives. This case was handled by Assistant United States Attorney Dianna R. Collins.
Tax Preparer Pleads Guilty to Preparing False Federal Income Returns for OthersRead the Press Release
PITTSBURGH, PA – A resident of Allegheny County, Pennsylvania, has pleaded guilty in federal court on charges of Aiding or Assisting in the Preparation or Filing of False Federal Income Tax Returns, United States Attorney Scott W. Brady announced today.
Quincy K. Denson of Clairton pleaded guilty to two counts before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, Denson, while a tax preparer at Cititax Tax Refund in Pittsburgh, prepared false federal income tax returns for other persons that included false Schedule C information, and which requested a false tax refund for the taxpayer.
Judge Fischer scheduled the sentencing for October 3, 2019 at 11 a.m. The law provides for a total sentence of three years imprisonment for each count, a fine of $250,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation conducted the investigation that lead to the prosecution of Quincy K. Denson.
Tax Preparer Pleads Guilty to Filing Fraudulent Tax ReturnsRead the Press Release
NEW ORLEANS, LOUISIANA – DANA ALVAREZ, age 49, a resident of Holden, Louisiana, pled guilty Thursday, April 25, 2019 to conspiracy to defraud the United States with regard to tax returns announced U.S. Attorney Peter G. Strasser.
According to court documents, ALVAREZ worked for Crown Tax Service, LLC, located in Kenner, Louisiana. ALVAREZ and others conspired to defraud the United States by fraudulently minimizing tax liability and fraudulently inflating tax refunds claimed on the tax returns of Crown Tax Service’s clients, and for personal enrichment.
ALVAREZ faces 5 years of imprisonment as to Count 1, 3 years of supervised release and a possible $250,000 fine. Sentencing will occur on July 25, 2019.
U.S. Attorney Strasser praised the work of the Internal Revenue Service, Criminal Investigations Division for its work in investigating this case.
The case is being prosecuted by Trial Attorney Lauren Castaldi, Department of Justice Tax Division, and Assistant U.S. Attorney G. Dall Kammer, Supervisor, General Crimes.
* * *
Syracuse Man Sentenced to 46 Months for Threats Against Public OfficialsRead the Press Release
SYRACUSE, NEW YORK – Stephen J. Taubert, age 61, of Syracuse, was sentenced today by Chief United States District Court Judge Glenn T. Suddaby to serve 46 months in prison, to be followed by a three-year term of supervised release, and to pay a fine of $1,000, following Taubert’s conviction after trial on charges that he threatened to kill Congresswoman Maxine Waters (D-CA 43rd District) and her staff, and separately threatened to kill former President Barack Obama. The sentence was announced by United States Attorney Grant C. Jaquith, Chief Matthew R. Verderosa, United States Capitol Police, and Special Agent in Charge Lewis Robinson, United States Secret Service, Buffalo, New York Field Office.
United States Attorney Jaquith said, “The jury unanimously found that Taubert targeted former President Obama and Representative Waters because of their race. Racist threats to kill present and former public officials are not protected free speech, but serious crimes against both the victims and the rule of law that is the cornerstone of our republic. As the trial verdict and sentence in this case illustrate, those who spew such vile, violent hatred will be held accountable.”
In March 2019, a federal jury found Taubert guilty of making several telephone calls to the Washington D.C. office of then-Minnesota Senator Al Franken in June 2017. In two of those calls, Taubert stated that he was planning to go to Washington D.C. the next day to “hang” former President Obama at his home and to kill him. In making these threats, Taubert repeatedly used vile racial slurs directed toward former President Obama.
The jury also convicted Taubert of threatening Congresswoman Maxine Waters on July 20, 2018. Taubert called the Los Angeles, California district office of Congresswoman Waters and stated that he would be at every event the Congresswoman attended and that he would kill her and every member of her staff. In making these threats, Taubert directed vile racial slurs toward Congresswoman Waters and her staff.
The evidence at trial included a recorded law enforcement interview of Taubert, during which he admitted that he called Congresswoman Waters’s office to “terrorize” her in retaliation for public statements she had previously made.
In addition to returning guilty verdicts on all three counts charged in the indictment, the trial jury made specific findings that Taubert selected his victims because of their actual or perceived race, color, or ethnicity, which provided for an enhancement under the U.S. Sentencing Guidelines based upon hate-crime motivation.
This case was investigated by the United States Capitol Police, Threat Assessment Section, and the United States Secret Service, with assistance from the Syracuse Police Department, and was prosecuted by Assistant U.S. Attorneys Michael D. Gadarian and Michael F. Perry.
St. Louis Man Sentenced for Armed Robbery of 7-11 StoreRead the Press Release
St. Louis, MO – Travion Lindsey, 20, of St. Louis, was sentenced to 108 months in prison for armed robbery charges. He appeared in federal court today before U.S. District Judge Ronnie L. White.
According to court documents, Lindsey, along with co-defendants Jevante Phillips and Ahmaad Ali, entered the 7-11 store located on Christy Avenue in South St. Louis, Missouri on October 18, 2017. The three arrived at the 7-11 in a Pontiac Aztek that had been stolen one day earlier at gunpoint by Ali and Phillips. They entered the store with firearms displayed. Their faces were covered with masks. Phillips walked around the counter and began removing lottery tickets and money from the cash register. Ali jumped over the counter and began removing the cash register’s contents. Lindsey stood guard at the door and eventually assisted in removing the money. After two minutes inside of the store, the three started taking liquor bottles, cigarettes, and candy on their way outside. The males then re-entered the Aztec and fled the area.
Phillips pled guilty in September 2018 and was sentenced to 130 months in prison in February 2019. Ahmaad Ali pled guilty in February 2019 and will be sentenced May 8, 2019.
The case was investigated by the Federal Bureau of Investigation and assisted by the St. Louis Metropolitan Police Department. Assistant U.S. Attorney Tom Mehan was handling the case for the U.S. Attorney’s Office.
Springfield Man Indicted on Federal Cocaine OffenseRead the Press Release
BOSTON – A Springfield man was arrested today and charged in federal court with distributing cocaine.
Samuel Diaz, a/k/a “Sammy,” 36, was indicted on one count of distribution and possession with intent to distribute cocaine.
The indictment alleges that, on March 24, 2015, Diaz distributed and possessed with intent to distribute cocaine.
The charge of distributing and possessing with intent to distribute cocaine provides a sentence of no greater than 20 years in prison, at least three years of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Assistant U.S. Attorney Katharine A. Wagner of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
South Florida Doctor Sentenced to Prison for Tax Evasion and Disability FraudRead the Press Release
A South Florida doctor residing in Hobe Sound, Florida, was sentenced to 51 months in prison yesterday for tax evasion, wire fraud, and Social Security disability fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.
According to court documents and information provided to the court, Arthur John Kranz was a doctor specializing in psychiatry. Beginning in 2002, Kranz made a claim on his private disability policy that he was unable to work, and began receiving disability payments from his insurance company. In December 2003, Kranz submitted an application to the Social Security Administration (SSA) for disability benefits The SSA approved his application. Kranz then began receiving SSA disability payments, in addition to the private disability insurance payments. Because of the disability payments, Kranz was required to notify his insurance company and the SSA if he returned to work.
From January 2006 to March 2013, Kranz worked as a psychiatrist at a hospital in Pennsylvania and earned over $1.6 million in income. Kranz did not report his employment to either the SSA or his insurance company. Rather, in order to continue collecting disability benefits, Kranz took steps to conceal his income from the insurance company, the SSA, and the Internal Revenue Service (IRS). He directed that his income be paid to nominee individuals and sham corporations he had created to receive his payments. Kranz also filed false personal tax returns that did not report the income from his work as a psychiatrist, and provided .
fraudulent documentation to his insurance company that falsely stated that he was not working.
In addition to the term of imprisonment imposed, Kranz was order to serve three years of supervised release and pay restitution of $1,013,284.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation and the SSA Office of Inspector General, who conducted the investigation, and Assistant Chief Charles M. Edgar, Jr. and Trial Attorneys Michael C. Boteler and Terri-Lei O’Malley of the Tax Division, who prosecuted the case with assistance from the U.S. Attorney’s Office for the Southern District of Florida.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Several Charged in Federal Drug Trafficking and Money Laundering ConspiraciesRead the Press Release
CORPUS CHRISTI, Texas – A total of six men are now in custody following the return of a 41-count indictment alleging a cocaine and marijuana trafficking conspiracy, conspiracy to commit money laundering and 39 substantive drug and money laundering violations, announced U.S. Attorney Ryan K. Patrick.
During an enforcement operation today, federal agents and local officers arrested Rodolfo Hernandez Ramos, 40, Luis Ortiz III, 39, Florentino Galvan, 77, Antonio Saenz, 52, Guadalupe Gonzalez, 39, and Ulises Francisco Cortinas, 44, all of the Brownsville and McAllen areas. Also charged is Emilio Garcia Uribe, 61.
Cortinas and Gonzalez made their initial appearances today before U.S. Magistrate Judge Ronald Morgan in Brownsville and Scott Hacker in McAllen, respectively. With the exception of Uribe, all are expected to make their appearances in Brownsville and McAllen, respectively, tomorrow. Uribe is considered a fugitive and a warrant remains outstanding for his arrest.
The indictment, returned March 13, 2019, and unsealed today, charges all seven with the drug trafficking conspiracy involving more than five kilograms of cocaine and more than 1,000 kilograms of marijuana between July 1, 2014, and March 13, 2019.
All are also charged with conspiring to conduct financial transactions with drug proceeds. They allegedly transported, transmitted and transferred U.S. currency which they knew represented the proceeds from drug trafficking from the United States to Mexico. The transactions and transportation were designed to conceal and disguise the nature, location, source, ownership and control of the drug proceeds, according to the charges.
If convicted of the drug conspiracy offense, they all face a minimum of 10 years and up to life in federal prison as well as a possible $10 million maximum fine. The money laundering conspiracy carries a potential 20 years and a fine of not more than $500,000, or twice the value of the property involved in the transaction or both.
Ramos also faces 28 additional substantive money laundering counts which carry the same 20-year-sentence. Also charged in some of these substantive money laundering counts along with Ramos are Ortiz, Cortinas and Saenz.
The indictment also includes 11 additional substantive possession with intent to distribute cocaine and/or marijuana counts against Ramos, Ortiz, Galvan and Uribe. If convicted on those charges, Ramos and Galvan face up to life imprisonment, while Ortiz and Uribe face up to 40 years in prison.
The Drug Enforcement Administration and IRS – Criminal Investigation conducted the Organized Crime Drug Enforcement Task Force investigation dubbed “Broken Blue Line.” Assistant U.S. Attorney Kenneth Cusick is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Seventh Guilty Plea in Gas Pump Skimming Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A Philadelphia man pleaded guilty today to his role in a gas pump skimming fraud scheme in Northern Virginia and elsewhere that resulted in the theft of thousands of credit and debit cards and a loss to financial institutions and the U.S. Postal Service of nearly $500,000 in actual losses and at least $3.5 million in intended losses.
According to court documents, Timurbek Khasanov, 38, participated in a scheme that involved at least six other individuals. The scheme was carried out by attaching electronic devices known as “skimmers” to gas pump payment systems—which collected the information captured when unwitting customers swiped their payment cards at the compromised gas pumps—and then encoding the stolen card numbers onto physical payment cards. Thereafter, the encoded physical cards were used throughout Northern Virginia and elsewhere to make fraudulent ATM withdrawals and U.S. Postal Service money order purchases. Court documents show that between May and August 2017, Khasanov used these encoded physical cards to make at least $5,100 in unauthorized cash withdrawals from ATMs and to purchase at least $6,200 in U.S. Postal Service money orders.
Khasanov pleaded guilty to bank fraud and wire fraud, each of which carry maximum terms of imprisonment of 30 years, as well as aggravated identity theft, which carries a mandatory term of imprisonment of 2 years. Khasanov is scheduled to be sentenced on September 6. Actual sentences for federal crimes are typically less than the maximum penalties, and a federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
As reflected in court documents, in addition to Khasanov, the six individuals listed in the table below have been charged in connection with the same criminal conduct, have pleaded guilty to the listed offenses, and have been sentenced.
Name, Age
Hometown
Convictions
Total Sentence
Rudolf Mekhakian, 31
Van Nuys, CA
Conspiracy to Commit Bank and Wire Fraud; Aggravated Identity Theft
90 months
Radik Karapetyan, 25
North Hollywood, CA
Conspiracy to Commit Bank and Wire Fraud; Aggravated Identity Theft
78 months
Siranush Yengibaryan, 24
Van Nuys, CA
Conspiracy to Commit Bank and Wire Fraud; Aggravated Identity Theft
66 months
Armen Saplekchian, 37
Tarzana, CA
Conspiracy to Commit Bank and Wire Fraud; Aggravated Identity Theft
60 months
Mushegh Melkonyan, 28
Las Vegas, NV
Conspiracy to Commit Bank and Wire Fraud; Aggravated Identity Theft
54 months
Anatoly Zinchenko, 47
Philadelphia, PA
Conspiracy to Commit Bank and Wire Fraud
33 months
Court documents indicate that some of the above-listed defendants may face immigration consequences as a result of their convictions. For instance, Karapetyan and Yengibaryan are citizens of Armenia and green card holders, and Saplekchian is an illegal alien.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorneys Alexander P. Berrang and Kellen S. Dwyer are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 1:18-cr-136, 1:18-cr-143, 1:18-cr-144, and 1:18-cr-149.
Sedalia Man Sentenced to 25 Years for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Sedalia, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine and prescription opioids.
Jackie R. Shelledy, 57, was sentenced by U.S. District Judge Roseann Ketchmark to 25 years in federal prison without parole. The court also sentenced Shelledy to 10 years of supervised release following incarceration.
Shelledy was convicted at trial on Nov. 2, 2018. According to court documents, Shelledy possessed or distributed at least 2.3 kilograms of methamphetamine as well as prescription opioids during the drug-trafficking conspiracy that lasted from Jan. 1, 2015, to Feb. 14, 2018. Shelledy purchased and redistributed methamphetamine in Kansas City, Sedalia, Springfield, Warsaw, and other locations.
Evidence introduced during the trial indicated that Shelledy, a member of the Galloping Goose Motorcycle Club, sold methamphetamine and prescription pills to co-defendant Teresa A. Wolfe, 53, of Sedalia. Wolfe then distributed the illegal drugs to other individuals. Shelledy also purchased methamphetamine and prescription pills from Wolfe.
An undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives made a series of undercover purchases of methamphetamine as well as some prescription pills from Wolfe.
A search warrant was executed at Shelledy’s residence on Feb. 13, 2018. Officers seized drug paraphernalia and a bottle of prescription pills in someone else’s name.
Wolfe and co-defendants Joseph E. Whitlow, 42, of Sedalia, and James “Manny” Smith, 56, of Clinton, Mo., have pleaded guilty to their roles in the drug-trafficking conspiracy and await sentencing. Wolfe also pleaded guilty to 14 additional counts related to distributing methamphetamine. Whitlow also pleaded guilty to being a felon in possession of a firearm.
Smith testified at trial that he introduced Shelledy to his source of methamphetamine in exchange for a motorcycle. During this introduction, Shelledy received a pound (453.6 grams) of methamphetamine from Smith’s supplier. Other individuals, who were not charged in the same conspiracy, testified during the trial that they sold pound quantities of methamphetamine to Shelledy.
The court also found that Shelledy attempted to obstruct justice when he tried to persuade a fellow inmate to falsely testify during the trial that another witness had lied to the jury.
Co-defendant Randall L. Rozier, 57, of Sedalia, was sentenced to 27 months in federal prison without parole after pleading guilty to being an illegal drug user in possession of firearms. Rozier was in possession of seven handguns when he was stopped by a Sedalia police officer for a traffic violation.
This case is being prosecuted by Assistant U.S. Attorneys Patrick Edwards and Emily A. Morgan. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sedalia, Mo., Police Department.
Registered Sex Offender Sentenced for Distribution of Child Pornography after Viewing Pornographic Images in PublicRead the Press Release
CORPUS CHRISTI - A 65-year-old Corpus Christi sex offender has received a lengthy federal prison sentence following his conviction for distribution of child pornography, announced U.S. Attorney Ryan K. Patrick. Manuel Diaz pleaded guilty Jan. 31, 2019.
Today, U.S. District Judge Neva Gonzales Ramos sentenced Diaz to 180 months in federal prison. The sentence will be immediately followed by 1o years of supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Diaz will also be ordered to register as a sex offender.
Following the imposition of the lengthy term, the defense called it “essentially a death sentence.”
Diaz has been a sex offender since 1984, when he was convicted for sexually assaulting a child out of Harris County.
On July 3, 2017, several employees at a local drug store noticed Diaz as he scrolled through photos on a kiosk in the photo lab area - in plain view of employees and customers. People noticed what they believed to be images of child pornography among what they described as “a lot” which were stored on Diaz’ phone and hooked into the kiosk by a data cable. Employees contacted local law enforcement who placed Diaz under arrest. Diaz subsequently confessed to possessing the images.
In total, Diaz was in possession of more than 100 images of child pornography and 65 videos containing child pornography. A forensic evaluation of his phone led investigators to several messages on a popular social media app in which Diaz had sent the images to other users, including people Diaz believed were underage females.
Diaz has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Corpus Christi Police Department’s – Internet Crimes Against Children Task Force conducted the investigation.
Assistant U.S. Attorneys Brittany L. Jensen and Hugo R. Martinez prosecuted the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Raleigh Man Convicted of Roanoke Rapids Bank RobberyRead the Press Release
RALEIGH - United States Attorney Robert J. Higdon, Jr. announced that today, DANNIE SIMON PARKER, JR., 48, of Raleigh, North Carolina was convicted in federal court following a two-day trial before United States District Judge James C. Dever, III. The jury found PARKER guilty of Bank Robbery.
On December 28, 2017, PARKER, entered the PNC Bank in Roanoke Rapids, North Carolina. Utilizing a handwritten demand note, PARKER, who was unarmed, stole $1,975 from the bank before fleeing. He was caught a short time later on I-95 South, after police blocked traffic in order to apprehend him. In the passenger seat of the car PARKER was driving were the funds from the robbery, as well as the demand note, and various other incriminating items. PARKER has two prior convictions for federal bank robbery, and was on federal supervised release at the time of the robbery.
PARKER faces a maximum sentence of 20 years imprisonment followed by 3 years of supervised release, along with a fine of up to $250,000.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
In support of PSN, the United States Attorney’s Office for the Eastern District of North Carolina has implemented the Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by the Federal Bureau of Investigation, Roanoke Rapids Police Department, and the Halifax County Sheriff’s Office. Assistant United States Attorneys Donald R. Pender and Melissa B. Kessler handled the prosecution of this case for the government.
Providence Man Sentenced for Possessing Images and Videos of Child PornographyRead the Press Release
PROVIDENCE, RI –A Providence man who admitted to possessing dozens of videos and images of child pornography was sentenced today to 30 months in federal prison, announced United States Attorney Aaron L. Weisman, Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh, and Rhode Island State Police Superintendent Colonel James M. Manni.
At the time of his guilty plea in December 2018, Samuel Mendez-Garcia, 43, admitted to belonging to an online social media group that viewed and exchanged child pornography. Mendez-Garcia also admitted to sharing child pornography via Facebook messenger.
According to information presented to the Court, in late March 2018, the National Center for Missing and Exploited Children received information from security personnel at Facebook that a user of their services, with an IP address in Rhode Island, uploaded child pornography. The information was forwarded to the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force who determined that the IP address and the Facebook account belonged to Mendez-Garcia.
On July 19, 2018, members of the ICAC task force executed a court-authorized search of Mendez-Garcia’s residence and seized a laptop computer and a cell phone owned by Mendez-Garcia. Simultaneously, law enforcement officers met with Mendez-Garcia at his place of employment and seized a cell phone that was in his possession. A forensic analysis of Mendez-Garcia’s cell phones by a member of the ICAC Task Force revealed dozens of videos and images of child pornography, including images involving prepubescent minors and sadistic/masochistic conduct.
Mendez-Garcia was arrested on August 1, 2018 and ordered detained in federal custody.
An immigration detainer has been lodged against Mendez-Garcia by U.S. Immigration and Customs Enforcement after it was determined that he entered the United States illegally. It was also determined that Mendez-Garcia was prevented from entering the United States in 2002 when he illegally attempted to cross the U.S. border from Mexico.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
United States Attorney Aaron L. Weisman acknowledges and thanks the Newport Police Department, a member of the ICAC Task Force, for its assistance in the investigation of this matter.
###
Portland Man Sentenced to 14 Years in Federal Prison for Dealing Oxycodone and Money LaunderingRead the Press Release
Downloadable file: Government Sentencing Memo (w/ Photos)
PORTLAND, Ore.—Shawn Terrell Crane, 39, of Portland, was sentenced today to 168 months in federal prison and three years’ supervised release for conspiring to distribute oxycodone and laundering drug proceeds.
The case against Crane is the result of a lengthy FBI and Portland Police Bureau investigation of a Portland-area drug trafficking organization that included a three-month wiretap of Crane’s cell phones. Crane is the leader of a criminal conspiracy that sourced oxycodone pills from Fresno, California and transported them to Oregon by vehicle and U.S. mail for distribution in and around the Portland metropolitan area.
During the course of the conspiracy, Crane was responsible for distributing more than 30,000 oxycodone pills and arranging for hundreds of thousands of dollars in cash to be deposited into third-party bank accounts to conceal its source. He used violence and the threat of violence to bolster his position of authority within the drug trafficking organization, intimidate competition and achieve his objectives. On one occasion, Crane videotaped himself assaulting and robbing a drug customer while armed with a gun. Crane then sent the video to others, boasting of his willingness to engage in violence without backup from his associates.
Crane previously pleaded guilty to one count of conspiracy to distribute oxycodone and one count of conspiracy to launder drug proceeds on May 3, 2018.
The FBI and Portland Police Bureau investigated this case. It was prosecuted by Leah K. Bolstad and Peter D. Sax, Assistant U.S. Attorneys for the District of Oregon.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Pharmacist at SSM St. Clare Health Center Pleads Guilty to Stealing Prescription PillsRead the Press Release
St. Louis, MO – Tina L. Obermeier, RPh, 59, of Webster Groves, MO, entered a guilty plea to one count of Obtaining Controlled Substance by Fraud or Forgery before Senior United States District Judge E. Richard Webber today. Obermeier is scheduled to appear for sentencing on July 24, 2019.
According to court documents, Obermeier was employed as a pharmacist at SSM St. Clare Health Center in Fenton, Missouri, during the time of the offense from January 2017 to April 2018. She would illegally obtain drugs such as hydrocodone, methadone, methylphenidate, and alprazolam from the pharmacy at St. Clare. Obermeier took the drugs in different ways. In some instances, she hid the drugs under her lab coat or other clothing instead of placing prescribed drugs in bins for delivery to patients. On other occasions, she reprinted labels for previously filled prescriptions causing the prescriptions to be filled a second time. Obermeier also printed labels and filled prescriptions for patients for whom there were no drugs prescribed. Obermeier stole approximately 2,476 controlled substances from the Pyxis medical station in the St. Clare pharmacy. Obermeier took the drugs for her own personal use.
Obermeier faces a maximum penalty of four years and a fine of not more than $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by Drug Enforcement Administration. Assistant U.S. Attorney Dorothy McMurtry is handling the case for the U.S. Attorney’s Office.
Pharmaceutical Company Agrees to Pay $17.5 Million to Resolve Allegations of Kickbacks to Medicare Patients and PhysiciansRead the Press Release
The Justice Department announced today that US WorldMeds LLC (USWM) has agreed to pay $17.5 million to resolve allegations that it violated the False Claims Act, 31 U.S.C. §§ 3729 et seq., by paying kickbacks to patients and physicians to improperly induce prescriptions of its drugs, Apokyn® and Myobloc®. USWM is a pharmaceutical manufacturer headquartered in Louisville, Kentucky.
“The Department of Justice is committed to ensuring that physicians’ and patients’ selection of medications is not influenced by improper financial considerations,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The nation’s health care programs and taxpayers deserve health care companies that play by the rules, including the Anti-Kickback Statute.”
“Pharmaceutical companies and other healthcare providers that pay kickbacks to patients and physicians to improperly induce drug prescriptions drive up the costs of health care and divert critical resources from the Medicare program,” said U.S. Attorney John H. Durham for the District of Connecticut. “This case originated with the filing of whistleblower lawsuits currently pending in the District of Connecticut, and the whistleblowers will be handsomely rewarded for exposing this scheme. We encourage all individuals who are aware of fraud against the government to come forward. The Connecticut U.S. Attorney’s Office will continue to pursue companies and providers that defraud federal health care programs.”
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part D, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance, or a deductible (collectively “copays”). Congress included copay requirements in the Medicare program, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. Under the Anti-Kickback Statute, a pharmaceutical company is prohibited from offering, directly or indirectly, any remuneration — which includes paying patients’ copay obligations — to induce Medicare patients to purchase the company’s drugs.
USWM substantially increased the price of Apokyn in or around January 2012, a decision that resulted in a corresponding increase to Medicare patients’ copays — which for many patients exceeded $5,000 per year. The United States alleged that, from the time of the price increase through June 30, 2013, USWM illegally paid Medicare patients’ Apokyn copays through a third-party foundation. During the relevant time period, USWM allegedly knew it was the only donor to the foundation’s Parkinson’s Disease fund and that virtually all of the fund’s donations were spent on Medicare Apokyn patients. The United States alleged that these payments represented illegal inducements to patients in violation of the Anti-Kickback Statute and False Claims Act.
The United States also alleged that USWM paid kickbacks to two physicians to induce prescriptions of Apokyn and Myobloc. Specifically, the United States alleged USWM paid these physicians excessive speaking and consulting fees and provided impermissible entertainment, such as lavish meals, private plane rides, and all-expense paid trips with their spouses (including trips to the Kentucky Derby).
Contemporaneously with the False Claims Act settlement, USWM has entered into a “Corporate Integrity Agreement” with the Department of Health and Human Services, Office of Inspector General. The five-year CIA requires, among other things, that USWM implement measures designed to ensure that its promotional activities and any arrangements and interactions with third-party patient assistance programs comply with the law. In addition, the CIA requires reviews by an independent review organization, compliance–related certifications from company executives and Board members, and the implementation of a risk assessment and mitigation process.
“Kickback schemes can undermine our healthcare system, compromise medical decisions, and waste taxpayer dollars,” said Phillip Coyne, Special Agent in Charge, Office of the Inspector General of the U.S. Department of Health and Human Services. “We will continue to hold pharmaceutical companies accountable for subverting the charitable donation process in order to circumvent safeguards designed to protect the integrity of the Medicare program. Simply put, OIG’s goal is to ensure that patients receive the appropriate treatments and therapies according to their medical needs, without the corrupt or profit-driven influence of drug manufacturers.”
“Ensuring the integrity of TRICARE, the U.S. Defense Department's health care program for military members and their dependents, is a top priority for the Defense Criminal Investigative Service (DCIS),” stated Leigh-Alistair Barzey, Special Agent-in-Charge, DCIS Northeast Field Office. “The settlement agreement announced today is the direct result of a joint investigative effort and is demonstrative of the DCIS' commitment to work with its law enforcement partners to investigate kickback schemes that divert funds from TRICARE and ensure that TRICARE patients properly receive the care and treatment that they deserve.”
The False Claims Act allegations resolved by the settlement were originally brought in lawsuits filed by whistleblowers under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblowers will receive $3,150,000.00 as their share of the recovery.
The investigation was conducted by the Civil Division of the Department of Justice; the U.S. Attorney’s Office for the District of Connecticut; the Department of Health and Human Services Office of Inspector General; the Food and Drug Administration, Office of Criminal Investigations; and Department of Defense Office of Inspector General, Defense Criminal Investigative Service.
The cases are captioned United States ex rel. Bennett v.US WorldMeds, LLC, The Assistance Fund, Inc. et al., No. 3:13-CV-363 (D. Conn.) and United States ex rel. Chinnapongse v.US WorldMeds, LLC, No. 3:16-cv-0080 (D. Conn.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Pharmaceutical Company Agrees to Pay $17.5 Million to Resolve Allegations of Kickbacks to Medicare Patients and PhysiciansRead the Press Release
The Justice Department announced today that US WorldMeds LLC (USWM) has agreed to pay $17.5 million to resolve allegations that it violated the False Claims Act, 31 U.S.C. §§ 3729 et seq., by paying kickbacks to patients and physicians to improperly induce prescriptions of its drugs, Apokyn® and Myobloc®. USWM is a pharmaceutical manufacturer headquartered in Louisville, Kentucky.
“The Department of Justice is committed to ensuring that physicians’ and patients’ selection of medications is not influenced by improper financial considerations,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The nation’s health care programs and taxpayers deserve health care companies that play by the rules, including the Anti-Kickback Statute.”
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part D, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance, or a deductible (collectively “copays”). Congress included copay requirements in the Medicare program, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. Under the Anti-Kickback Statute, a pharmaceutical company is prohibited from offering, directly or indirectly, any remuneration — which includes paying patients’ copay obligations — to induce Medicare patients to purchase the company’s drugs.
USWM substantially increased the price of Apokyn in or around January 2012, a decision that resulted in a corresponding increase to Medicare patients’ copays — which for many patients exceeded $5,000 per year. The United States alleged that, from the time of the price increase through June 30, 2013, USWM illegally paid Medicare patients’ Apokyn copays through a third-party foundation. During the relevant time period, USWM allegedly knew it was the only donor to the foundation’s Parkinson’s Disease fund and that virtually all of the fund’s donations were spent on Medicare Apokyn patients. The United States alleged that these payments represented illegal inducements to patients in violation of the Anti-Kickback Statute and False Claims Act.
The United States also alleged that USWM paid kickbacks to two physicians to induce prescriptions of Apokyn and Myobloc. Specifically, the United States alleged USWM paid these physicians excessive speaking and consulting fees and provided impermissible entertainment, such as lavish meals, private plane rides, and all-expense paid trips with their spouses (including trips to the Kentucky Derby).
“Pharmaceutical companies and other healthcare providers that pay kickbacks to patients and physicians to improperly induce drug prescriptions drive up the costs of health care and divert critical resources from the Medicare program,” said U.S. Attorney John H. Durham for the District of Connecticut. “This case originated with the filing of whistleblower lawsuits currently pending in the District of Connecticut, and the whistleblowers will be handsomely rewarded for exposing this scheme. We encourage all individuals who are aware of fraud against the government to come forward. The Connecticut U.S. Attorney’s Office will continue to pursue companies and providers that defraud federal health care programs.”
Contemporaneously with the False Claims Act settlement, USWM has entered into a “Corporate Integrity Agreement” with the Department of Health and Human Services, Office of Inspector General. The five-year CIA requires, among other things, that USWM implement measures designed to ensure that its promotional activities and any arrangements and interactions with third-party patient assistance programs comply with the law. In addition, the CIA requires reviews by an independent review organization, compliance–related certifications from company executives and Board members, and the implementation of a risk assessment and mitigation process.
“Kickback schemes can undermine our healthcare system, compromise medical decisions, and waste taxpayer dollars,” said Phillip Coyne, Special Agent in Charge, Office of the Inspector General of the U.S. Department of Health and Human Services. “We will continue to hold pharmaceutical companies accountable for subverting the charitable donation process in order to circumvent safeguards designed to protect the integrity of the Medicare program. Simply put, OIG’s goal is to ensure that patients receive the appropriate treatments and therapies according to their medical needs, without the corrupt or profit-driven influence of drug manufacturers.”
"Ensuring the integrity of TRICARE, the U.S. Defense Department's health care program for military members and their dependents, is a top priority for the Defense Criminal Investigative Service (DCIS)," stated Leigh-Alistair Barzey, Special Agent-in-Charge, DCIS Northeast Field Office. "The settlement agreement announced today is the direct result of a joint investigative effort and is demonstrative of the DCIS' commitment to work with its law enforcement partners to investigate kickback schemes that divert funds from TRICARE and ensure that TRICARE patients properly receive the care and treatment that they deserve."
The False Claims Act allegations resolved by the settlement were originally brought in lawsuits filed by whistleblowers under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblowers will receive $3,150,000.00 as their share of the recovery.
The investigation was conducted by the Civil Division of the Department of Justice; the U.S. Attorney’s Office for the District of Connecticut; the Department of Health and Human Services Office of Inspector General; the Food and Drug Administration, Office of Criminal Investigations; and Department of Defense Office of Inspector General, Defense Criminal Investigative Service.
The cases are captioned United States ex rel. Bennett v.US WorldMeds, LLC, The Assistance Fund, Inc. et al., No. 3:13-CV-363 (D. Conn.) and United States ex rel. Chinnapongse v.US WorldMeds, LLC, No. 3:16-cv-0080 (D. Conn.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Pennsylvania Man Sentenced to Three Years in Prison for Defrauding Lending Company of More Than $400,000Read the Press Release
CAMDEN, N.J. – The president of a staffing company was sentenced today to 36 months in prison for defrauding a commercial finance lending company out of more than $400,000, U.S. Attorney Craig Carpenito announced.
Jeremy Hare, 48, of Philadelphia, previously pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging him with wire fraud. Judge Bumb imposed the sentence today in Camden federal court.According to documents filed in the case and statements made in court:
Hare was the president and managing member of Apollo Search Partners LLC, a staffing agency with an office in New Jersey. On June 16, 2017, Hare had Apollo enter into a financing agreement with a commercial finance lender that offered funding to companies so that they could meet payroll and other obligations. The lender agreed to provide funding to Apollo. In order to get funding, Apollo would provide the Victim Company invoices and supporting time cards for each person Apollo staffed with a client.
Between June 20, 2017 and Aug. 15, 2017, Hare submitted more than 15 invoices to the lender even though Apollo never staffed most of the individuals listed on the invoices and the time sheets submitted with the invoices included hours that were never worked. Based on those invoices, the lender provided more than $400,000 to Apollo between June and August 2017. To date, the lending company has not received reimbursement for that funding.
In addition to the prison term, Judge Bumb sentenced Hare to three years of supervised release and ordered him to pay $411,838 in restitution.
U.S. Attorney Carpenito credited and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Andrew Kogan of the U.S. Attorney’s Office Cybercrime Prevention and Enforcement Unit and Sarah Devlin of the Asset Recovery and Money Laundering Unit in Newark.
Defense counsel: Ronald L. Greenblatt Esq., Philadelphia
Pedro Cortez-Gomez Sentenced to Serve 15 Years in Prison for Conspiring to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On April 29, 2019, Pedro Cortez-Gomez, 36, of Greeneville, Tennessee, a citizen of Mexico, was sentenced by the Honorable J. Ronnie Greer, Senior U.S. District Court Judge, to serve 15 years in federal prison for his role in a methamphetamine distribution conspiracy. Since Cortez-Gomez was residing in the United States illegally, he faces deportation after serving his sentence in federal prison.
Cortez-Gomez pleaded guilty in January 2019 to conspiring with his girlfriend Kayla Leanne Reaves, 25, of Afton, Tennessee; Casey Hannah Howren, 27, of Elizabethton, Tennessee; and others, to distributing between 1.5 and 4.5 kilograms of actual methamphetamine or “Ice.”
On April 22, 2019, Reaves was sentenced by Judge Greer to serve 41 months in federal prison for her role in the conspiracy. Sentencing for Howren is set for July 8, 2019.
Agencies involved in this investigation included Third Judicial District Drug Task Force, Greene County Sheriff’s Department, Greeneville Police Department, Elizabethton Police Department, Johnson City Police Department, Tennessee National Guard - Counterdrug Task Force, U.S. Immigration and Customs Enforcement-Enforcement and Removal Operations, FBI and ATF. Assistant U.S. Attorneys Christian Lampe and Robert Reeves represented the United States in court proceedings.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
###
Owner of Florida Medical Clinic Sentenced to PrisonRead the Press Release
An owner of a Florida medical clinic was sentenced to serve 91 months in prison today for her role in a $2.5 million health care fraud scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Special Agent in Charge Brian Swain of the U.S. Secret Service’s (USSS) Miami Field Office made the announcement.
Juliette Anais Tamayo, 54, the owner of Miami-based clinic Sunshine Medical Care Group Inc. (Sunshine), was sentenced by U.S. District Judge Cecilia Altonaga of the Southern District of Florida. Judge Altonaga also ordered Tamayo to pay $2.5 million in restitution. Tamayo pleaded guilty in February 2019 to one count of conspiracy to commit health care fraud and wire fraud. Also, Tamayo previously pleaded guilty to conspiracy to pay and receive kickbacks and to defraud the United States.
Tamayo was charged in a December 2018 superseding indictment with charges stemming from her involvement in a Part A home health care and Part B medical services fraud scheme in which she sold medically unnecessary home health care prescriptions to home health agency owners who in turn billed Medicare. According to her admissions made as part of her separate pleas to the health care fraud and kickback conspiracies, Tamayo solicited and accepted kickbacks from patient recruiters and from the owners of several Miami-area home health agencies in exchange for providing prescriptions for home health services to patients at Sunshine. The prescriptions, in turn, were used by the home health agencies to bill Medicare for home health services purportedly provided to Medicare beneficiaries. Tamayo paid a portion of the kickbacks she received from the home health agencies to physicians who worked at Sunshine to induce them to write the fraudulent prescriptions. In addition, Sunshine billed Medicare directly for medical services purportedly provided at the clinic that were not necessary and/or were not provided.
The case was investigated by the FBI, HHS-OIG, and USSS. Trial Attorneys Adam G. Yoffie, Gary A. Winters and Sara Clingan of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Nalina Sombuntham of the Southern District of Florida handled the asset forfeiture proceedings.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and 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.
Oshkosh Fentanyl Dealer Receives 20 Years in Federal Prison for Overdose DeathsRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today that Desmond T. Burns (age: 40) of Oshkosh, Wisconsin, appeared in federal court in Green Bay and was sentenced to 20 years in prison for distributing fentanyl that resulted in the overdose deaths of four individuals in the Fox Valley. During proceedings in this case, Burns acknowledged distributing an especially potent form of fentanyl, which led to the overdose deaths in the summer of 2017.
“Our hearts are heavy with the reality of four lives lost because of the fentanyl the defendant sold,” said U.S. Attorney Krueger. “The dangers of fentanyl cannot be overstated. Just a quarter of a milligram of fentanyl can be fatal. Yet fentanyl is regularly being trafficked in Wisconsin, causing hundreds of overdose deaths each year. This lengthy sentence should send a clear message: Anyone dealing a deadly poison like fentanyl can face decades in federal prison. We are committed to working with federal, state, and local partners to prosecute fentanyl trafficking aggressively. We commend the excellent partnership among the law enforcement agencies that brought this case to justice.”
In pronouncing sentence, Chief U.S. District Court Judge William C. Griesbach noted the “extremely serious” nature of Burns’ crime and the negative effect that fentanyl and all drugs have on the community. He found that Burns was aware of the inherent dangers of distributing illegal substances, finding that although Burns may not have intended for his customers to die, he reasonably could foresee that one of them might suffer a fatal overdose. Following his release from prison, Burns also must serve 10 years on federal supervised release.
The case was investigated by the New London Police Department, the Appleton Police Department, the Neenah Police Department, and the Winnebago County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Daniel R. Humble.
# # # #
Operator of McAllen Area DME Company Sentenced for Health Care FraudRead the Press Release
McALLEN, Texas ‐ The owner of a durable medical equipment (DME) company has been ordered to federal prison for defrauding Medicaid of more than $3 million, announced U.S. Attorney Ryan K. Patrick. Anna Ramirez-Ambriz, 57, of McAllen, pleaded guilty March 31, 2017.
Today, U.S. District Judge Randy Crane handed Ramirez-Ambriz a 78-month sentence to be immediately followed by three years of supervised release. She was further ordered to pay more than $3 million in restitution to the Texas Medicaid Program.
Ramirez-Ambriz owned Compassionate Medical Supply located in Edinburg. From 2007 through 2013, Ramirez-Ambriz billed Texas Medicaid for higher quantities and more costly incontinence supplies than were actually delivered to more than 100 Texas Medicaid recipients. Compassionate employees were instructed to provide recipients with fewer and less expensive incontinence supplies than Ramirez-Ambriz billed to Texas Medicaid. As part of her plea, Ramirez-Ambriz admitted she submitted false and fraudulent claims to Texas Medicaid.
As a result of her scheme, Ramirz-Ambriz further admitted that Texas Medicaid suffered a loss of $3,143,149.41.
Ramirez-Ambriz was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Texas Attorney General’s Medicaid Fraud Control Unit, FBI and the U.S. Department of Health and Human Services‐Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Andrew Swartz and Michael Day are prosecuting the case.
Ohio Man Sentenced to Eight Years in Prison for Drug and Gun CrimesRead the Press Release
HUNTINGTON, W.Va. -- An Ironton, Ohio man who possessed drugs and guns in Huntington was sentenced to eight years in prison, announced United States Attorney Mike Stuart. Stuart commended the investigation conducted by the Bureau of Alcohol, Firearms, and Explosives (ATF) and the Huntington Police Department.
“Eight years in prison for yet another drug dealer with a gun,” said United States Attorney Mike Stuart. “We are prosecuting record and historic numbers of drug and gun defendants to keep our children, our families and our communities safe.”
Bryan Patrick, 30, previously pled guilty to knowingly and intentionally possessing methamphetamine with intent to distribute and using and carrying firearms during and in relation to a drug trafficking crime. On September 26, 2018, officers with the Huntington Police Department responded to the Spring Hill Cemetery in Huntington and found Patrick slumped over in the driver’s seat of his vehicle. Patrick admitted to officers that he had used heroin earlier in the day and passed out. Officers recovered two loaded firearms between the driver’s seat and the center console in the vehicle. One firearm was a Walther PP22 semi-automatic pistol, which was fully loaded with a round in the chamber, and the other was a Kel-Tec 9mm semi-automatic pistol. In his pocket, Patrick had one package of methamphetamine that weighed approximately 8.22 grams and another package of methamphetamine that weighed 56.76 grams. Patrick also had digital scales in his vehicle. Patrick admitted that he intended to distribute the methamphetamine and that he carried the firearms for his protection.
Assistant United States Attorney Monica D. Coleman handled the prosecution. United States District Court Judge Robert C. Chambers imposed the sentence.
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.
SDWVNews and USAttyStuart
Ohio Glass Company Owner Pleads Guilty to Not Paying Employment TaxesRead the Press Release
The owner of a Greenville, Ohio, glass company pleaded guilty today to failing to truthfully account for and pay over employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
Gail Cooper, 64, of Greenville, was the sole owner of Greenville Architectural Glass LLC (GAG) during the years 2007 through 2015. GAG primarily installed glass in commercial and residential buildings for clients in Ohio. GAG paid wages to its employees during the years 2013 through 2015. As the person responsible for GAG’s finances, Cooper was required to withhold federal income taxes and Social Security and Medicare taxes from employees’ wages and pay those amounts to the Internal Revenue Service (IRS). Cooper was also required to file quarterly employment tax returns with the IRS. Although Cooper caused GAG to withhold taxes from employees’ wages, she neither paid those amounts over to the IRS, nor filed the required quarterly returns for the first quarter of 2013 through the second quarter of 2015. Cooper also failed to pay over to the IRS unemployment taxes.
As part of her plea agreement, Cooper also admitted that she filed false individual income tax returns for the years 2008 – 2010 on which she understated GAG’s gross receipts and overstated its expenses.
Cooper also admitted in plea documents that she willfully failed to file income tax returns for the years 2011 through 2014, which would have reported her income from GAG and other sources. Cooper paid a professional tax return preparer to complete returns for those years, but Cooper never filed them.
U.S. District Judge Thomas M. Rose set sentencing for Aug. 2. Cooper faces up to five years in prison and a $250,000 fine. Cooper admitted that her conduct caused a loss to the government of more than $500,000, and agreed to pay restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who investigated the case, and Trial Attorneys Melissa S. Siskind and Thomas F. Koelbl of the Tax Division, who are prosecuting the case. Principal Deputy Assistant Attorney General Zuckerman also thanked the U.S. Attorney’s Office for the Southern District of Ohio for their assistance in this matter.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website at www.justice.gov/tax.
Ohio County Magistrate admits to tax fraudRead the Press Release
WHEELING, WEST VIRGINIA – Ohio County Magistrate Harry A. Radcliffe, III, has admitted to tax fraud, United States Attorney Bill Powell announced.
Radcliffe, age 60, pled guilty to one count of “Conspiracy to Impede the Internal Revenue Service.” In tax years 2013, 2014, and 2015, Radcliffe accepted a total of approximately $22,000 in cash payments from William W. Seelbach, then owner of W&S Bail Bonding d/b/a A Bail Bonding by ABC (“ABC”), which payments were offered by Mr. Seelbach as bribes. These payments were made and received in cash, at least in part, in an effort to impede the Internal Revenue Service in the collection of income taxes. Radcliffe willfully failed to report this income to the Internal Revenue Service, resulting in a total tax loss of $5,500.00. He also failed to report this extra-judicial income to the Supreme Court of Appeals of West Virginia.
As a part of the plea, Radcliffe has agreed to pay $5,500 in restitution to the Internal Revenue Service.
Radcliffe faces up to five 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 offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Jarod J. Douglas and Shawn M. Adkins prosecuted the case on behalf of the government. The Federal Bureau of Investigation, the Internal Revenue Service, the West Virginia Commission on Special Investigations, and the West Virginia State Police investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.North Lauderdale Resident Sentenced to Prison for Being a Felon in Possession of a Firearm and Possession of CocaineRead the Press Release
A North Lauderdale resident was sentenced today to more than six years in prison for being a felon in possession of a firearm and possession of cocaine.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office and Gregory Tony, Sheriff, Broward County Sheriff’s Office (BSO), made the announcement.
Christopher Sergo Denis, 28, of North Lauderdale, was sentenced by U.S. District Judge James I. Cohn to 77 months in prison, to be followed by 3 years of supervised release for being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) and a concurrent term of 12 months in prison, to be followed by 1 year of supervised release for possession of cocaine, in violation of Title 21, United States Code, Section 844 (Case No. 18-CR-60296).
According to the court record, including the agreed upon factual proffer, on September 15, 2018, Denis posted a video recording that he labeled “Wild Wild West” on Facebook as he was firing three firearms at a local gun range. A BSO detective discovered the Facebook posting and brought it to the attention of ATF. An ATF Special Agent viewed the Facebook posting, went to the gun range, and recovered evidence documenting Denis’s presence at the gun range as well as a video recording made by the gun range of Denis firing the firearms.
On October 18, 2018, an ATF Special Agent and BSO detectives arrested Denis outside a courtroom in the Broward County Courthouse in Fort Lauderdale when he arrived to attend a hearing in a pending state criminal case. In his pocket, Denis had a small container in which there were fourteen plastic zip-lock bags, each containing a small quantity of cocaine.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
U.S. Attorney Fajardo Orshan commended the investigative efforts of ATF and BSO in this matter. This case was prosecuted by Assistant U.S. Attorney William T. Shockley.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Non-Citizen Living in Texas Pleads Guilty to Methamphetamine TraffickingRead the Press Release
Gulfport, Miss – Consuelo Azeneth Garcia Lopez, 39, of Laredo, Texas, pled guilty today before U.S. District Judge Sul Ozerden to possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and DEA Special Agent in Charge Brad L. Byerley.
On September 27, 2016, Garcia Lopez was traveling eastbound on Interstate 10 when she was pulled over for a traffic violation by a Gulfport police officer near mile marker 37. She informed the officer that she was tired, having driven all day, but could not give a location to which she was traveling. Instead, she said she would be told where to go when she arrived in Alabama. The officer learned that Garcia Lopez had several border crossings into and out of Mexico. He asked and obtained consent to search the vehicle and located almost 5 kilograms of pure methamphetamine hidden in the vehicle. Garcia Lopez was legally in the country but is not a U.S. citizen.
Garcia Lopez will be sentenced on July 30, 2019 by Judge Ozerden, and faces a maximum penalty of life in prison and a $10,000,000 fine.
The case was investigated by the Gulfport Police Department and the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John Meynardie.
Nine Individuals Have Plead Guilty to Involvement in Staged AccidentsRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Richard Ronald Wells of Spokane, Washington pleaded guilty to multiple criminal charges in connection with his role in a conspiracy to defraud an insurance company by staging an automobile accident and to launder the criminally derived proceeds. Richard Ronald Wells pled guilty to six counts of mail fraud, one count of conspiracy to commit mail and wire fraud, one count of conducting monetary transactions in criminally derived property, and one count of conspiracy to conduct monetary transaction in criminally derived property. Chief United States District Judge Thomas O. Rice accepted Wells’ nine guilty pleas and scheduled a sentencing hearing for July 30, 2019, at 10:00 a.m. in Spokane, Washington.
According to court documents and information disclosed during court proceedings, Wells admitted to conspiring with others to stage an October 2016 accident in Liberty Lake, Washington, involving Wells’ 2015 Ram 3500 truck, Christopher Joseph Frangella’s 2005 Ford F250 truck, and another individual’s 2005 Baja boat in order to defraud Safeco Insurance Company out of approximately $338,266. Wells and Frangella allowed the other individual to deliberately crash Wells’ Ram 3500 truck into Frangella’s truck while towing the other individual’s boat. False material representations were made to police, emergency and medical personnel, and Safeco Insurance Company about the manner in which the accident occurred and the cause, nature and extent of the injuries incurred. Wells and the others falsely claimed that they suffered injuries from the accident and communicated with Safeco about their fraudulent claims via interstate telephone calls, facsimile transmissions, and mailings. Wells received an approximate $59,557 split of the fraud proceeds in the form of a check from Safeco.
Eight other individuals have pleaded guilty to criminal charges for their role in the scheme to defraud insurance companies: Ryan Folks Park of Spokane, Washington, pleaded guilty to fourteen counts of mail fraud, one count of conspiracy to commit mail and wire fraud, one count of conspiracy to commit health care fraud, two counts of conducting monetary transactions in criminally derived property, and one count of conspiracy to conduct monetary transaction in criminally derived property. Park admitted to directly participating in at least thirteen accidents staged by co-conspirators between 2013 and 2017 in Washington, Nevada, California, and Idaho. The fraudulent insurance proceeds generated by the thirteen staged accidents totaled approximately $2,836,852. He is scheduled to be sentenced on June 6, 2019.
Kimberly Rita Boito of Spokane, Washington, pleaded guilty to three counts of mail fraud, one count of wire fraud, one count of conspiracy to commit mail and wire fraud, one count of conspiracy to commit health care fraud, two counts of conducting monetary transactions in criminally derived property, and one count of conspiracy to conduct monetary transaction in criminally derived property. Boito admitted to participating in at least four staged accidents generating approximately $1,238,964 in fraud proceeds. She is scheduled to be sentenced on June 13, 2019.
Christopher Joseph Frangella of Nine Mile Falls, Washington, pleaded guilty to five counts of mail fraud and one count of conspiracy to commit mail and wire fraud. Frangella admitted to participating in five staged accidents in Washington, Idaho and Nevada. The fraudulent proceeds generated from the five accidents totaled approximately $968,737. He is scheduled to be sentenced on June 6, 2019.
Bonnie Jean Bonney of Placerville, California, pleaded guilty to five counts of mail fraud, one count of wire fraud, and one count of conspiracy to commit mail and wire fraud. Bonney admitted to participating in at least four staged accidents in California and Nevada which generated approximately $1,183,872 in fraudulent proceeds. She is scheduled to be sentenced on May 8, 2019.
Brittany Jo Harris of Newport, Washington, pleaded guilty to two counts of mail fraud, one count of conspiracy to commit mail and wire fraud, and one count of conspiracy to commit health care fraud. Harris admitted to participating in at least two staged accidents in Idaho and California that generated approximately $448,707 in fraudulent insurance proceeds. She is scheduled to be sentenced on July 18, 2019.
Stephanie Stock of San Jose, California, pleaded guilty to one count of conspiracy to commit mail and wire fraud. She is scheduled to be sentenced on July 16, 2019.
Matthew David Carter of Las Vegas, Nevada pleaded guilty to four counts of mail fraud and one count of conspiracy to commit mail and wire fraud. Carter admitted to participating in two staged accidents in Las Vegas, Nevada, that generated approximately $566,512 in fraud proceeds. He is scheduled to be sentenced on July 10, 2019.
Jason Allan Westfall of Las Vegas, Nevada, pleaded guilty to two counts of mail fraud, and one count of conspiracy to commit mail and wire fraud. Westfall admitted to participating in one stated accident in Las Vegas, Nevada, that generated approximately $275,607 in fraud proceeds. He is scheduled to be sentenced on July 10, 2019.
The vehicles used in some of the staged automobile accidents included: a 2002 Jaguar Vanden Plus; a 2005 Jaguar; a 2001 Jaguar XK8; a 2004 Infiniti FX35; a 2004 Cadillac Escalade; a 2006 Land Rover; a 2004 Mercedes Benz ML350; a 2008 Cadillac CTS; a 2007 BMW X3; and a 2001 BMW 530I. A 1995 Chaparral was used in a staged boating accident.
Eleven other defendants have been named in an indictment and are awaiting trial. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This investigation was conducted by the Federal Bureau of Investigation, IRS Criminal Investigation, United States Marshals Service, United States Social Security Administration Office of the Inspector General, and United States Drug Enforcement Administration, with assistance from the National Insurance Crime Bureau. This case is being prosecuted by George J.C. Jacobs, III, an Assistant United States Attorney for the Eastern District of Washington.
New Haven Man Pleads Guilty to Federal Firearm and Narcotics ChargesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that MICHAEL DAVIS, also known as “Clep,” “Clip,” and “Michael Smith,” 33, of New Haven, pleaded guilty yesterday before U.S. District Judge Kari A. Dooley in Bridgeport to firearm and narcotics offenses.
According to court documents and statements made in court, in December 2018, law enforcement began investigating Davis related to a threatening incident in New Haven. Davis was arrested on December 7, 2018. At the time of his arrest, he possessed distribution quantities of heroin and cocaine. A subsequent search of his vehicle revealed a Smith & Wesson SD 40 handgun.
Davis’s criminal history includes multiple felony convictions for narcotics offenses and a conviction for escape in the first degree. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Davis pleaded guilty to one count of possession of a firearm by a previously convicted felon, an offense that carries a maximum term of imprisonment of 10 years, and one count of possession of heroin with intent to distribute, an offense that carries a maximum term of imprisonment of 20 years. Judge Dooley scheduled sentencing for August 7, 2019.
This matter is being investigated by the Federal Bureau of Investigation and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Nathaniel Gentile.
Nancy J. Gargula to Serve as U.S. Trustee for Florida, Georgia, Puerto Rico and the U.S. Virgin IslandsRead the Press Release
Nancy J. Gargula, the U.S. Trustee for Indiana and the Central and Southern Districts of Illinois (Region 10), has been designated by Attorney General William P. Barr also to serve for an interim period as the U.S. Trustee for Florida, Georgia, the Commonwealth of Puerto Rico and the U.S. Virgin Islands (Region 21) beginning today, the Executive Office for U.S. Trustees announced. Ms. Gargula replaces Daniel M. McDermott, who has served as interim U.S. Trustee in the region since January 2018. Under 28 U.S.C. § 585(b), the Attorney General may fill U.S. Trustee vacancies by designating an incumbent U.S. Trustee to serve in a second region.
“As a 17-year veteran of the U.S. Trustee Program, Ms. Gargula is well positioned to assume responsibility for one of the Program’s largest regions,” said USTP Director Cliff White. “Her knowledge and experience will serve the region well.”
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 90 field office locations. Region 21 is headquartered in Atlanta, Georgia, with additional offices in Macon and Savannah, Georgia; Miami, Orlando, Tallahassee and Tampa, Florida; and San Juan, Puerto Rico.
Murfreesboro Woman Facing Federal Charges for Wire Fraud & Tax EvasionRead the Press Release
NASHVILLE, Tenn. – April 30, 2019 – Barbara Butler, 59, of Murfreesboro, Tennessee, pleaded guilty last week to wire fraud and tax evasion, after embezzling more than $1.8 million from her employer, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Butler, the comptroller for D.S. Collaborative in Brentwood, Tennessee, was charged in a criminal information on April 5, 2019, and pleaded guilty to the charges on April 25, 2019.
According to documents filed with the court, Butler had been the comptroller for D.S. Collaborative for over 20 years and was responsible for all of the company’s financial affairs. Between December 2009 and July 2016, Butler wrote company checks to herself and used the company’s credit cards for personal use and for the use of her family members, without the knowledge or approval of the company’s owners. Butler also opened a company Costco credit card in the name of a family member and permitted that family member to use the card for personal use. In another instance, in March 2015, Butler used a company credit card to make a purchase from Jared Galleria Jewelry in Franklin, Tennessee, in the amount of $11,774.96. During the course of the scheme, Butler embezzled more than $1.8 million from the company.
In 2016, after learning that the company was subjected to an IRS audit, Butler provided false financial documents to the IRS auditor in an attempt to conceal the fact that she had written company checks to herself, and she altered general ledgers to make it appears as though the checks were written to legitimate vendors. During tax years 2010-2015, Butler failed to report to the IRS the income resulting from the embezzlement and caused a tax loss of $521,207.
According to the terms of the plea agreement, Butler faces up to 25 years in prison and will have to pay restitution. Butler also agrees to forfeit the contents from several bank accounts and proceeds from the sale of a house.
This case was investigated by the IRS-Criminal Investigation. Assistant U.S. Attorney Kathryn Booth is prosecuting the case.
# # # # #
Monongalia County residents admit to drug chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA –Two Monongalia County residents have admitted to their involvement in a drug distribution operation, United States Attorney Bill Powell announced.
Clifford “Mike” Nethken, of Morgantown, West Virginia, pled guilty to one count of “Aiding and Abetting Distribution of Cocaine Base.” Nethken, age 45, admitted to working with another to sell cocaine base in Monongalia County in April 2018.
Bonnie Jo Korzun, of Granville, West Virginia, pled guilty to one count of “Distribution of Heroin.” Korzun, age 39, admitted to selling heroin in Monongalia County in May 2018.
Nethken and Korzun each face up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the cases on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Mississippi Man Pleads Guilty to Sexual Abuse of Minor on Cruise ShipRead the Press Release
BOSTON – A Mississippi man pleaded guilty on Friday, April 26, 2019, in federal court in Boston to sexually assaulting a minor during a cruise from Boston to Bermuda.
Adam Christopher Boyd, 32, of Bay Springs, Miss., pleaded guilty to one count of sexual abuse of a minor. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Aug. 1, 2019. Boyd appeared in federal court in August 2017 and was subsequently released on conditions. However, after violating his conditions of release in November 2018, he was ordered detained and has been in custody since.
In August 2017, Boyd was a passenger on a seven-day cruise from Boston to Bermuda. While the ship was docked in Bermuda, Boyd allegedly raped a minor passenger while the two were onboard the ship. The child subsequently reported the rape to ship security, who notified Bermudian authorities. In the course of the Bermuda Police Service’s initial investigation, they arrested Boyd and notified authorities in the United States.
Sexual abuse of a minor carries a sentence of no greater than 15 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement. Valuable assistance was also provided by U.S. Customs and Border Protection, the Bermuda Police Service, Massachusetts Port Authority and FBI Legat Bridgetown, Barbados, Sub Office Nassau. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Milton Man Sentenced on Drug Trafficking ChargesRead the Press Release
CONCORD – United States Attorney Scott W. Murray today announced that
Jason L. Brewer, 36, of Milton, New Hampshire was sentenced to time served (over 15 months) for participating in a conspiracy to possess a controlled substance with intent to distribute.
According to court documents and statements made in court, on July 12, 2016, a New Hampshire State Police trooper observed Brewer commit multiple motor vehicle violations while driving northbound on Interstate 95. The trooper executed a traffic stop of Brewer’s car near the Hampton tolls. Timothy Kondroski was a passenger in the car. During the traffic stop, the trooper observed evidence of drug possession. While the trooper questioned Brewer and Kondroski, Kondroski fled and darted across four lanes of the interstate highway toward the barriers that divided the cash tolls from the open road tolling lanes. The trooper chased Kondroski, yelling at him to stop. The trooper eventually caught up to Kondroski at the barriers, which Kondroski was attempting to climb over. During the chase, Kondroski’s sneakers fell off. When retrieving them from the roadway, the troopers found a bag containing approximately 35 grams of heroin. A second bag containing approximately one ounce of cocaine was recovered from inside one of Kondroski’s sneakers. Kondroski and Brewer both eventually admitted to buying the drugs in Lawrence, Massachusetts. Kondroski further acknowledged that he paid $2700 for the drugs and intended to sell them.
Brewer previously pleaded guilty on August 1, 2017. Co-defendant Timothy W. Kondroski, was sentenced on January 8, 2018 to 54 months in prison.
“Interstate drug trafficking continues to endanger lives throughout New Hampshire,” said U.S. Attorney Murray. “Determined action by the state trooper prevented the drugs from reaching their intended destination and ensured that Mr. Brewer was before a judge today to face justice. Traffickers should be aware that federal prison terms await those who engage in the drug trade.”
This matter was investigated by the New Hampshire State Police. The case was prosecuted by Assistant U.S. Attorney Anna Dronzek. Former Assistant U.S. Attorney Bill Morse also participated in the prosecution of this case.
###
Miami Man Sentenced to 78 Months in Prison for Possessing over 5,000 Images of Child PornographyRead the Press Release
A Miami man was sentenced to six and one-half years in prison for maintaining two separate storage units that contained over 5,000 images of child pornography.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Adolfo Zayas-Bazan Albaisa, 56, was sentenced on April 29, 2019, by U.S. District Judge Federico A. Moreno to serve 78 months in prison. Judge Moreno also ordered Albaisa to serve 20 years of supervised release following his prison sentence. Albaisa pled guilty in February 2019 to one count of possession of child pornography.
According to admissions made in connection with his plea and evidence presented at the sentencing hearing, Albaisa had earned a Master’s Degree in Architecture from Harvard University and taught as an adjunct professor at the University of Miami (1994-2002) and Florida International University (2000-2002). From 2007 to 2016, Albaisa maintained control of two separate storage units, one located in Miami and the other in Doral. Albaisa stopped making payments on each storage unit and pursuant to company policy, the storage units were auctioned off to the highest bidder in 2013 and 2016, respectively. In each instance, the auction winner reviewed the unit’s items and discovered pictures of underage boys engaged in sexual activity. The FBI submitted the evidence for fingerprint examination and Albaisa’s fingerprints were positively identified on two images of child pornography. Albaisa also stored additional items in the storage units, such as boy scout paraphernalia, children’s clothing, and photographs of teenagers taken at swimming meets and wrestling matches. He also kept personal items in the storage units, such as architectural drawings and magazines, his library card to the University of Miami library, family photographs, his resume, and various articles of mail addressed to his home. In total, Albaisa collected and stored over 5,000 images of child pornography between the two units that he paid for and controlled.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI and FBI Miami Child Exploitation Task Force in this matter. She thanked the Doral Police Department and the City of Miami Police Department for their assistance. This case was prosecuted by Assistant U.S. Attorney Cary O. Aronovitz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Man Admits to Laundering More than $1.5 Million in Proceeds from Business Email Compromise Schemes and to Selling Reptiles Without a LicenseRead the Press Release
Alfredo Veloso, 43, of Miami, today admitted to opening bank accounts, and to recruiting others to open bank accounts, as a conduit for stolen funds in connection with a wide-ranging international money laundering operation for business email compromise and other cyber-schemes. Veloso also admitted to selling reptiles without a license, in violation of the Lacey Act.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and David Pharo, Resident Agent in Charge, U.S. Fish & Wildlife Service (FWS), Office of Law Enforcement, Southeast, Florida, made the announcement.
Veloso pled guilty before U.S. District Judge Kathleen M. Williams to one charge of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h), and four counts of violating the Lacey Act, that is, knowingly engaging in conduct that involved the sale and purchase of, and intent to sell and purchase, wildlife, that is, reptiles, with a market value in excess of $350.00, knowing that said wildlife was taken, possessed, transported, and sold in violation of and in a manner unlawful under the laws and regulations of the State of Florida, specifically, Florida Statute 379.3761, all in violation of Title 16, United States Code, Sections 3372(a)(2)(A) and 3373(d)(1)(B).
According to court documents and statements, from April 2017 to December 2018, Veloso, together with co-conspirators Roda Taher a/k/a “Rezi,” Karina Rosado, and Alvaro Lugo, and others participated in a scheme to help steal more than $1.5 million dollars from individual and corporate victims, which proceeds were later laundered. The scheme involved recruiting “money mules,” including Veloso, who allowed their respective names and personal identifying information to be used by co-conspirators to incorporate a sham business through the Florida Department of State, Division of Corporations, under such mule’s name. As part of the scheme, a mule would then open bank accounts at multiple banks in the name of his or her shell company. Several mules, including Veloso, later recruited and managed new money mules. To date, more than 200 money mules and money mule recruiters have been identified as part of this international money laundering network.
As stated in court records, a related cyberattack aspect of the scheme involved the creation, by co-conspirators, of email addresses that mimicked, but differed slightly from, legitimate email addresses of supervisory employees at various companies. The conspirators used these deceptive email addresses to send emails that appeared to be requests for payment of legitimate invoices or debts owed by the victims. The victims were deceived into transferring funds by wire into the bank accounts opened by the money mules and controlled by Veloso and the co-conspirators. After the victims complied with the fraudulent wiring instructions, Veloso, Rosado, and Lugo, under the direction of other conspirators, quickly debited thousands of dollars from the accounts through in-person withdrawals, ATM withdrawals, and debit card purchases. The co-conspirators also transferred funds to foreign bank accounts that co-conspirators controlled.
Veloso, Rosado, Lugo, and other co-conspirators kept a fraction of the proceeds as payment. For example, over a two-day period in April 2017, Veloso’s shell company, Veloso Bulk Trade, received incoming wires totaling more than $1,000,000 from four victims, which included two corporations, a law firm, and an individual. Of these funds, Veloso withdrew or spent approximately $26,686.
Veloso admitted that he recruited more than eight individuals to participate as mules in the money laundering scheme, many of whom were women he met through his kink pornography/adult film business. Veloso and his mules laundered between $1.5 to $3.5 million dollars.
Additionally, Veloso used his reptile business, known as Tri Reptiles and Xtreme Reptiles, to knowingly sell and ship wildlife in interstate commerce in 2018. His yearly reptile sales volume was at least approximately $150,000. Veloso acted as a reptile wholesaler, reselling hundreds of reptiles without obtaining the required Florida license.
At sentencing, on the money laundering count, Veloso faces up to 20 years imprisonment and a fine of $250,000, or twice the gross pecuniary gain/loss. Veloso faces up to five years imprisonment, and a fine of $20,000, or twice the gross gain, on each count of the Lacey Act violation. Sentencing is scheduled before Judge Williams on July 8, 2019, at 3:00 p.m.
Lugo pled guilty to one count of conspiracy to commit money laundering on November 19, 2018, and on April 8, 2019, Judge Williams sentenced Lugo to 34 months in prison. Rosado is a fugitive and remains at large.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, USSS, and FWS in this matter. This case is being prosecuted by Assistant U.S. Attorney Lisa H. Miller.
In related cases in this District, more than thirty members of the money laundering network have been prosecuted and convicted. See United States v. Roda Taher, et al., 17-cr-60223-UU; United States v. Luis Pujols, et al., 17-cr-20702-JEM; United States v. Cynthia Rodriguez, et al., 17-cr-20748-JEM; United States v. Eliot Pereira, et al., 18-cr-20170-MGC; and United States v. Gustavo Gomez, et al., 18-CR-20415-UU. Assistant U.S. Attorneys Jared M. Strauss, Dwayne E. Williams, and Lisa H. Miller prosecuted those cases.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Meadview Man Sentenced to Prison for Drug Sales, Theft of Government Property, and International Smuggling of Federally- Protected CactiRead the Press Release
PHOENIX – On April 29, 2019, William Starr Schwartz, 54, of Meadview, Ariz., was sentenced by U.S. District Judge Steven P. Logan to 24 months’ imprisonment, to be followed by three years of supervised release. Schwartz was also ordered to pay restitution in the amount of $22,655 to the National Fish and Wildlife Foundation, a charitable and nonprofit corporation established to further the conservation and management of fish, wildlife, plants, and other natural resources. Schwartz had previously pleaded guilty to possession with intent to distribute methamphetamine, theft of government property, smuggling cacti from the United States, and Lacey Act false labeling charges.
Between approximately Oct. 1, 2014 and Aug. 22, 2018, Schwartz stole, and directed others to steal for him, in excess of 500 federally-protected cactus plants from the Lake Mead National Recreation Area in Arizona. Schwartz sold the stolen cacti through the Internet, and illegally shipped the cacti from Meadview to more than 20 countries throughout the world. During a search warrant conducted on Schwartz’s residence in August 2018, numerous stolen cacti were recovered by law enforcement agents. Additionally, methamphetamine and related drug paraphernalia were found.
The United States Fish and Wildlife Service, with assistance from the National Park Service and the United States Postal Inspection Service, conducted the investigation. The prosecution was handled by Paul Stearns, Assistant U.S. Attorney, District of Arizona.
CASE NUMBER: CR-18-08333-SPL
RELEASE NUMBER: 2019-057_Schwartz
# # #
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.
Maryland man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Desmon Johnson, of Parkville, Maryland, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Johnson, age 35, pled guilty to one count of “Unlawful Possession of a Firearm.” Johnson, having previously been convicted of a felony, admitted to having five firearms in his possession in September 2016 in Preston County.
Johnson faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Eastern Panhandle Drug & violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Man Sentenced to an Additional Year in Prison for Escaping from a Halfway HouseRead the Press Release
A man who escaped from a halfway house he was in while finishing his federal prison term was sentenced April 29, 2019, to more than a year in federal prison.
Jermaine Roberts, age 44, from Cedar Rapids, Iowa, received the prison term after an October 20, 2018 guilty plea to escape from custody.
Evidence at sentencing showed that Roberts was in a halfway house finishing a federal prison sentence following his prior convictions for mail and wire fraud. Roberts left the halfway house, but failed to return when he was supposed to. The police located Roberts after receiving a call reporting that Roberts said there was going to be a shooting, warning a citizen to go into his home. When police arrived on scene, Roberts claimed to have a gun and ran from the officers. After a foot-chase, officers arrested him. Roberts stated that he had a gun and officers were going to have to find it. Officers searched the area and Roberts, but did not find a gun.
The sentencing judge noted that Robert’s criminal history included 29 adult convictions, including six violent crimes.
Roberts was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Roberts was sentenced to 12 months’ and one day of imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Roberts is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the United States Marshals Service and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-00087.
Follow us on Twitter @USAO_NDIA.
Man Sentenced to 40 Years in Prison for Shooting Tulsa Police OfficerRead the Press Release
The man who shot and wounded Tulsa Police Sgt. Mike Parsons during a traffic stop in July has been ordered to federal prison today, announced U.S. Attorney Trent Shores.
U.S. District Judge Claire V. Eagan sentenced Chatman to 40 years in prison for his crimes.
In January, a jury found John Terry Chatman, Jr., 35, guilty of three federal counts for his actions at a local Quik Trip on July 3, 2018. The counts included being a felon in possession of a firearm and ammunition, obstruction of justice by attempting to kill a witness, and carrying, using and discharging a firearm during and in relation to a crime of violence.
“If you shoot a police officer, then you will go to prison for a long time. Plain and simple. John Chatman learned that lesson today,” said U.S. Attorney Shores. “In addition to the officers, Chatman also endangered the lives of innocent civilians when he pulled the trigger of his gun in the middle of a busy QuikTrip parking lot on the day before Independence Day. This prosecution should serve as a deterrent to anyone who would think about shooting at a police officer. They put their lives on the line every day to protect ours. I’m thankful for the brave men and women of the Tulsa Police Department.”
On July 3, Tulsa police officers discovered Chatman driving a mini-van with a license plate that was registered to a different vehicle. Officers explained the traffic violation and asked for identification. Chatman repeatedly refused to identify himself and questioned the officers’ jurisdiction. Chatman escalated the situation by refusing to exit the vehicle and demanding to speak to a supervisor.
Police body cameras show officers directing Chatman to exit the vehicle and repeatedly explaining the traffic and obstruction violations to him. Eventually, Tulsa Police Sergeant Mike Parsons arrived on scene and explained to Chatman that he was obstructing an investigation.
The video further showed that Sgt. Parsons again ordered the man to leave the vehicle, explaining to Chatman he would use PepperBalls to make him exit the vehicle. As the sergeant deployed his PepperBall gun into the vehicle, Chatman shot him with a handgun from within the mini-van, striking Sgt. Parsons. An officer returned fire, and Chatman was eventually arrested. The prosecution showed that the sergeant’s injuries could have been far more severe, potentially shattering his femur or hitting an artery, if a challenge coin in his pocket had not deflected the bullet.
A .32 caliber revolver was recovered from the scene with four spent cartridge casings in the firearm, and two live rounds. As a felon, Chatman was not allowed to possess firearms under federal law.
Chatman remains in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department investigated the case. U.S. Attorney Trent Shores and Assistant U.S. Attorneys Allen Litchfield and Mark Morgan prosecuted the case.
Man Pleads Guilty to Defrauding His EmployerRead the Press Release
OKLAHOMA CITY – JIMMY WAYNE SMITH, 37, of Oklahoma City, has pleaded guilty to using interstate wire communications to defraud his employer of hundreds of thousands of dollars, announced First Assistant U.S. Attorney Robert J. Troester.
According to federal charges filed on April 12, 2019, Smith was employed from 2012 until June 2017 as an operations coordinator at ACTS, a Chickasha company that provides cooling tower rental services. He allegedly created an entity called Axial Electric, purportedly based in California, and induced vendors that supplied equipment and parts to ACTS to purchase equipment from Axial and to invoice ACTS. Smith is alleged to have induced ACTS to pay the vendors, who in turn paid Axial Electric, which directly benefited Smith. According to the charges, Axial Electric was supposed to send the equipment directly to ACTS, but ACTS never received the equipment.
On April 29, Smith appeared before Chief U.S. District Judge Joe Heaton and pleaded guilty to a single count of wire fraud. In a plea agreement, he acknowledged that, based on current information, he will owe $228,192.32 in restitution to Aggreko Cooling Tower Services. The plea agreement provides that the total loss amount does not exceed $495,601.83, which would include losses suffered by the vendors.
Sentencing will take place in approximately 90 days and will take into account the full scope of Smith's fraud. He faces up to twenty years in prison and a fine of up to $250,000, as well as supervised release of up to three years and mandatory restitution.
These charges are the result of an investigation by the FBI Oklahoma City Division. The case is being prosecuted by Assistant U.S. Attorney William E. Farrior.
Reference is made to court filings for further information.
Loudon Man Sentenced to 50 Months for Methamphetamine TraffickingRead the Press Release
CONCORD – Mark T. Moore, 38, of Loudon, New Hampshire, was sentenced in federal court 50 months in prison for participating in a conspiracy to distribute, and possess with intent to distribute, methamphetamine, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, beginning in late 2016, the DEA and the Postal Inspection Service investigated numerous parcels mailed from Las Vegas, Nevada, to New Hampshire suspected of containing methamphetamine. Law enforcement agents also investigated parcels of money mailed from New Hampshire to Las Vegas, and money transfers from New Hampshire to Las Vegas. Eventually, investigators identified Edward Espejo as the individual in Las Vegas who was shipping methamphetamine to buyers in New Hampshire in return for money transfers or packages of cash mailed to him via the U.S. Postal Service.
Co-Defendant Michael Bean, along with his girlfriend and co-defendant Katie-Jo Waters, joined the conspiracy in or before January 2018. Defendant Mark Moore, who already knew Espejo, joined the conspiracy soon afterwards. Within the conspiracy, Moore handled the communications (mostly by text) to and from Edward Espejo in Las Vegas and coordinated the shipments of drugs from Nevada and the wiring of payments from New Hampshire. Waters received mailed packages containing methamphetamine at her residence; Bean and Waters distributed methamphetamine to buyers in New Hampshire; and Bean and Waters wired the proceeds of drug sales to Espejo in Las Vegas to purchase additional drugs. Bean and Waters also distributed to Moore a portion of the methamphetamine they received from Espejo.
On January 16, 2018, a package was mailed from Las Vegas. The package was scheduled to be delivered on January 17, 2018. The package was addressed to Waters at an apartment on Pembroke Street in Pembroke. Postal Inspectors obtained and executed a federal search warrant for the package. The package contained 18.989 grams of 100 percent pure methamphetamine.
On April 9, 2018, a package was mailed from Las Vegas. The package was scheduled to be delivered on April 10, 2018. The package was addressed to co-defendant Waters at the same Pembroke Street location. This package was delivered to the Pembroke residence. On April 11, 2018, Waters was stopped by the New Hampshire State Police driving a car registered to her. Inside the car was a black bag containing four baggies containing a total of 23.011 grams of 100 percent pure methamphetamine.
Wal-Mart and MoneyGram records reflect that either Bean or Waters made at least 16 separate money transfers to three persons in Las Vegas, NV between January 10, 2018 and April 29, 2018, sending a total of at least $28,550 to purchase methamphetamine.
On May 2, 2018, Postal Inspectors intercepted another package from Espejo in Las Vegas. The package was addressed to another individual at the same Pembroke Street residence previously used by co-defendant Waters. Postal Inspectors obtained a federal search warrant for the package and seized what was later determined to be 441.8 grams (approximately one pound) of pure methamphetamine.
Moore previously pleaded guilty on January 17, 2019.
Espejo previously pleaded guilty and is awaiting sentencing.
Bean was sentenced to 120 months in prison and Waters was sentenced to 72 months in prison.
“Highly pure methamphetamine is appearing in New Hampshire with greater frequency,” said U.S. Attorney Murray. “We will continue to work closely with our law enforcement partners to identify, prosecute, and incarcerate those who are responsible for distributing this very dangerous drug in the Granite State. Drug traffickers who choose to sell methamphetamine in New Hampshire should understand that their conduct will result in substantial prison sentences.”
“This sentence reflects DEA’s strong commitment to bring to justice those that distribute methamphetamine,” said DEA Special Agent in Charge Brian D. Boyle. “DEA and its local, state and federal law enforcement partners will do everything in our power to keep this highly addictive drug off the streets of New Hampshire.”
“The sentence imposed today on Mark Moore demonstrates the commitment of the U.S. Postal Inspection Service and our law enforcement partners, to the safety and health of the American public,” said Inspector in Charge Joseph W. Cronin of the U.S. Postal Inspection Service’s Boston Division. “Moore’s actions allowed this highly addictive drug to have a place in our community. We will continue to investigate and take action against those who take part in this type of behavior.”
This matter was investigated by the DEA and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney John Davis.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
###