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Thursday 14 March 2019
Klamath County Man Found Guilty of Stealing Missing Mother's Social Security BenefitsRead the Press Release
MEDFORD, Ore.—On Wednesday, March 13, 2019, a federal jury found Theodore Martin Kirk, 64, of Klamath County, Oregon, guilty of stealing more than $30,000 in Social Security benefits dispersed in the name of his elderly mother, Nadine Kirk. Ms. Kirk has been missing since March 2010 and is presumed to be deceased.
"This case began with a single tip from an observant community member and led to the discovery of a multi-year scheme to exploit the Social Security program—a critical tax payer-funded program supporting the nation’s elderly. Tips play an important role in law enforcement and help to reveal crimes that might otherwise go undiscovered," said Billy J. Williams, U.S. Attorney for the District of Oregon.
According to court documents and information shared during trial, in July 2015, a concerned community member contacted the Klamath County Sheriff’s Office regarding the whereabouts of Ms. Kirk as she had not been seen for multiple years. At the time of this call, Ms. Kirk would have been 98 years old. Shortly thereafter, a sheriff deputy visited the residence shared by Ms. Kirk and her son, Theodore, in Bonanza, Oregon. Mr. Kirk claimed his mother had left with friends to travel to California two months prior, but would not permit the deputy to enter his property to confirm his mother was not there.
In an August 2015 interview with a detective, Mr. Kirk again told law enforcement he believed his mother was in California with friends. He added that it had been "quite some time" since his mother had seen a doctor despite having suffered from multiple strokes. Mr. Kirk claimed to be suspicious of his mother’s medications and reported previously removing her from them. Further, he acknowledged that he shared a joint checking account with his mother, into which her monthly Social Security payments were deposited.
Later in August, the Social Security Administration suspended payments to the Kirk’s joint checking account based on Ms. Kirk’s unknown whereabouts. A Social Security investigator reviewed Ms. Kirk’s bank records and found that the last transaction bearing her signature was dated January 2010. From January 2010 until August 2015, over $1,000 in benefits were deposited monthly into the joint checking account and nearly every month, Mr. Kirk would withdraw the entire amount in cash. All of the withdrawals from the account occurred in Oregon, not in California were Ms. Kirk was purported to be.
In August 2017, investigators conducted a search of the Kirk property and recovered a detailed calendar kept by Mr. Kirk. Prior to 2010, the calendar included activities for both Mr. Kirk and his mother. The calendar revealed a series of strokes experienced by Ms. Kirk beginning in 2004 and continuing into the beginning of 2010, where the calendar showed she experienced two strokes in three days. Following the multiple strokes, there were no additional calendar entries for Ms. Kirk’s activities.
Mr. Kirk faces a maximum sentence of ten years in prison. He will be sentenced on Thursday, June 27, 2019 before U.S. District Court Judge Michael J. McShane.
This case was investigated by the Social Security Administration, Office of Inspector General with the assistance of the Klamath County Sheriff’s Office and prosecuted by Adam E. Delph and Gavin W. Bruce, Assistant U.S. Attorneys for the District of Oregon.
Kansas Sex Offender Convicted of Distributing Child PornographyRead the Press Release
BOSTON – A previously convicted sex offender was convicted Tuesday, March 12, 2019, by a federal jury in Boston following a five-day trial.
Christopher Saemisch, 61, was convicted of distributing child pornography to a currently incarcerated federal inmate. U.S. District Court Judge George A. O’Toole Jr. scheduled sentencing for July 9, 2019.
In 1997, Saemisch was convicted in federal court for conspiring to sexually exploit children, aiding and abetting the sexual exploitation of children, conspiring to distribute and receive child pornography, and distributing and receiving child pornography. He was also convicted by a Kansas court in 1999 for aggravated indecent liberties with a child under 14.
In April 2016, agents received information from a federal inmate that Saemisch, who at the time was living in Kansas City, Kansas, admitted to looking at and storing child pornography and wanting to travel to Europe to have sex with children. Saemisch boasted to the inmate about his access to children and his new job babysitting four children.
During the inmate’s communications with Saemisch, they used special coded language to discuss the collection and distribution of child pornography. The inmate confirmed that he and Saemisch used the code word “antiques,” when referring to child pornography and the code word “puppies,” to refer to children.
On May 3, 2016, agents, pretending to be the inmate, began communicating with Saemisch. During the monitored conversations on various messaging apps and web platforms, Saemisch directed the undercover agents to set-up accounts to receive and exchange child pornography. He also sent them child pornography that he had stored on various file storage sites. Saemisch was arrested on May 6, 2016, while attending an event at a nudist campsite.
Due to Saemsich’s prior child exploitation convictions, he faces a mandatory minimum sentence of 15 years and up to 40 years in prison, a minimum of five years and up to a lifetime of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and J. Ray Ormond, Northeast Regional Director of the Federal Bureau of Prisons, made the announcement. Assistance was also provided by the United States Attorney’s Office in the District of Kansas, as well as the Johnson County and Leavenworth County Sheriffs’ Departments in Kansas. The case was prosecuted by Assistant U.S. Attorneys Jordi de Llano, James Herbert and Anne Paruti of Lelling’s Criminal Division.
The case was 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 Criminal Division’s CEOS, 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/.
Kanawha County Felon Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A Kanawha County felon pled guilty to a federal gun crime, announced United States Attorney Mike Stuart. Mason Laviro Scragg, 24, of Chesapeake, West Virginia, entered his guilty plea to being a felon in possession of a firearm. Stuart commended the investigation conducted by the Kanawha County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“Convicted felon. Stolen gun. Meth,” said United States Attorney Mike Stuart. “It’s offenders like Scragg that are responsible for much of the crime in our communities.”
As established by public court filings and hearings, on August 16, 2018, a man reported to Kanawha County Deputies that his house in Rand, West Virginia, was burglarized. The burglars stole six firearms, three digital cameras, vehicle titles, $1,000 in savings bonds, and various other personal items.
Later that day, a Kanawha County Deputy found some of the stolen items in a backpack outside of an empty, abandoned house on Church Drive. The Deputy spotted another dilapidated, abandoned house nearby, with the doors open. After entering the house and announcing his presence, the Deputy found Scragg lying on a mattress. One of the stolen firearms, a 12 gauge shotgun, was protruding from under the mattress directly beneath Scragg. Deputies also recovered close to five grams of methamphetamine in Scragg’s room.
At the time that he possessed the shotgun, Scragg was a convicted felon whose right to possess a firearm had not been restored. Scragg is facing up to 10 years in prison when he is sentenced on June 19, 2019. United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Drew O. Inman is handling the prosecution.
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.
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KC Man Sentenced to 15 Years for Drug Trafficking That Led to Kidnapping, TortureRead the Press Release
KANSAS CITY, Mo. – Three men have been sentenced in federal court this week for their roles in a drug-trafficking conspiracy that led to the kidnapping and torture of an Independence, Mo., man.
Randal G. Holmes, also known as “Peckerwood” or “Wood,” 54, of Kansas City, Mo., and Michael C. Borrusch, also known as “Birdie,” 43, of Lakewood, Colo., were sentenced today in separate appearances before U.S. District Judge Greg Kays. Holmes was sentenced to 15 years in federal prison without parole. Borrusch was sentenced to 3 years and 10 months in federal prison without parole.
Jeremy R. Bond, 40, of Independence, was sentenced on Wednesday, March 13, 2019, to two years and six months in federal prison without parole.
On July 10, 2018, Holmes pleaded guilty to one count of conspiracy to commit kidnapping, one count of kidnapping, one count of conspiracy to distribute 50 kilograms or more of marijuana and one count of brandishing firearms in furtherance of a drug-trafficking crime. Borrusch and Bond pleaded guilty to their roles in the drug-trafficking conspiracy.
Holmes’s son and co-defendant Gerald L. Holmes, also known as “Jerry” or “Joker,” 27, and co-defendant Richard M. Phoenix, also known as “Snake,” 77, both of Kansas City, Mo., have also pleaded guilty and await sentencing.
During the conspiracy, which lasted from May 1 to Sept. 13, 2016, Bond invested $10,000 into the marijuana operation. In return, he received $1,000 a week as interest and free marijuana until the entire principal investment was repaid in full. This investment allowed Gerald Holmes and a co-conspirator, identified in court documents as “C.H.” (who had made four trips to Colorado with Gerald Holmes), to purchase greater quantities of marijuana per trip. Once it reached the greater Kansas City metropolitan area, the marijuana was then resold by Gerald Holmes and C.H.
Conspirators purchased at least 120 pounds of marijuana from Borrusch, for which they made more than a dozen trips between Colorado and Kansas City. Gerald Holmes paid Borrusch between $1,600 to $2,400 per pound, depending on the type and quality of marijuana available. Randal Holmes received $100 for every pound of marijuana brought back to Kansas City because of his prior connection to Borrusch, who was previously his supplier.
On Sept. 12, 2016, Randal and Gerald Holmes agreed to kidnap C.H. because he stole money that was intended for the purchase of marijuana.
They arrived at the Independence, Mo., residence of the victim’s father, identified as “W.H.,” on Sept. 12, 2016. During their conversation, Gerald Holmes removed a firearm from his waistband and placed it on a table in front of W.H. They told W.H. to call C.H. and tell him he was being held at gunpoint and that C.H. needed to come to the residence right away. When C.H. arrived at the residence, Randal Holmes pointed a firearm at him and told him to get into his vehicle. While in the vehicle, Gerald Holmes struck, punched and choked C.H. as Randal Holmes drove away.
They took C.H. to Randal Holmes’s residence, where they were met by Phoenix. C.H. was taken to the basement, where he was assaulted with fists, a hammer and tin snips/clippers. During the assault, Holmes repeatedly demanded that C.H. disclose where the duffle bag containing the money was located. Randal and Gerald Holmes left to retrieve the duffle bag while Phoenix held C.H. at gunpoint.
Randal Holmes later drove C.H. to a rural residence near Edwards, Mo. As Randal Holmes drove them to the residence, Gerald Holmes continued to strike C.H. with fists and the butt of a firearm. When they arrived at the residence, C.H. was told to call his father and to tell him that he was okay, that he had taken a beating, that he would be home in a couple of days and that he deserved what had happened.
Law enforcement officers were able to trace the telephone call and on Sept. 13, 2016, officers were able to locate C.H. and arrest the conspirators. Officers observed that C.H. had suffered multiple, visible injuries to his face, head, hands and feet. Officers noted that C.H. had trouble walking, that his face was black and blue, as well as swollen with traces of dried blood. Upon receiving medical treatment, it was determined that C.H. had also suffered a fracture in his left hand.
Officers found a Jimenez Arms 9mm pistol in Randal Holmes’s vehicle and a Hi-Point 9mm pistol in the residence where C.H. had been held. Officers also found an FN Herstal .40-caliber pistol, a Remington .270-caliber rifle, an RG .22-caliber revolver, a Ruger .22-caliber rifle, a Mossberg .20-gauge shotgun, 36.4 grams of marijuana and drug paraphernalia in another residence.
This case is being prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh. It was investigated by the Independence, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Benton County, Mo., Sheriff’s Department, the Missouri State Highway Patrol and the FBI.
Jury Returns Guilty Verdict Involving Multi-Kilo Cocaine Distributor with Criminal HistoryRead the Press Release
COLUMBUS – A Columbus man found guilty for attempting to sell 11,995 grams of cocaine to an undercover agent could spend up to life in prison for his crime, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Kenneth James, 51, of Phenix City, AL is guilty of Possession of Cocaine with Intent to Distribute. Due to the large amount of cocaine, more than five kilograms, Mr. James faces a minimum 10 years to a maximum life imprisonment and a $10,000,000 fine. The trial began Monday, March 11, 2019 in a Columbus federal courtroom, presided over by the Honorable Clay D. Land. The jury returned the verdict after an hour and a half of deliberations Wednesday afternoon. Following the verdict, Mr. James was taken into custody and will be sentenced in July. There is no parole in the federal system. Mr. James was convicted in December 1999 on the charge of Possession of Cocaine with Intent to Distribute in the Middle District of Alabama.
An undercover agent working with the Columbus Police Department (CPD) identified Marcus Marshall, 35, of Columbus, GA, a co-defendant in this case, as a large quantity cocaine distributor in September 2017. In a series of recorded calls, Mr. Marshall agreed to meet with the undercover agent to sell 10 kilos of cocaine at $27,500 per kilo. On October 16, 2017, law enforcement documented Mr. James meeting Mr. Marshall at a motel and moving a large box (later discovered to be carrying 11,995 grams of brick form cocaine) from the trunk of his Mercedes Benz to Mr. Marshall’s BMW SUV. Mr. James and Mr. Marshall then drove a short distance to the Welcome Center parking lot on Williams Road in north Columbus to meet the undercover agent. The defendants were arrested during the transaction with the undercover agent. Mr. Marshall has a criminal past, and was convicted in the Middle District of Georgia in July 2004 for Distribution of Cocaine Base and was sentenced to 78 months in prison. For this crime, Mr. Marshall pleaded guilty in December 2018 and was sentenced to ten years in prison for Possession with Intent to Distribute and Possession of a Firearm by a Convicted Felon.
“Good police work stopped these career criminals from distributing a large amount of a deadly drug into the Columbus community,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “Law-abiding citizens do not want dangerous drugs circulating in their communities, and law enforcement across Middle Georgia are successfully joining together to investigate and prosecute these crimes. Thank you to the Columbus Police Department and the DEA for their work in this matter.”
This case was investigated by the Columbus Police Department and the DEA. Assistant U.S. Attorneys Mel Hyde and Chris Williams are prosecuting the case for the Government.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Jury Convicts East Coast Leader of Nationwide Methamphetamine ConspiracyRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a New York man today on charges of conspiracy to distribute methamphetamine.
According to court records and evidence presented at trial, Kendesia Juinize May, 40, was a leader of a sprawling, nationwide methamphetamine distribution network with ties to California, New York, Washington, DC, and the Eastern District of Virginia. The network utilized pirated and fraudulent Federal Express accounts to ship pound quantities of California-sourced methamphetamine throughout the United States.
In late 2017, May negotiated to buy into the conspiracy and assume distribution responsibilities to its Washington, DC area customers, many of whom were themselves distributors of methamphetamine. According to evidence presented at trial, May “took over” methamphetamine distribution in the northern Virginia and Washington, DC area and aspired to become “the biggest drug dealer on the East Coast.”
Multiple witnesses testified that May traveled from his home in New York to the Washington, DC area every week for the purpose of selling methamphetamine. He did so because the Washington, DC area is one of the most lucrative methamphetamine markets in the country.
The government presented evidence showing that the conspiracy sent nearly 400 FedEx packages containing either pound quantities of methamphetamine or thousands of dollars in proceeds of drug sales. On May 25, 2018, officers of the Maryland Transportation Authority Police stopped May while driving his Mercedez Benz vehicle, and a search of the vehicle led to the discovery of more than five pounds of pure methamphetamine, along with FedEx packaging, digital scales, and other drug paraphernalia.
May faces a mandatory minimum of 10 years in prison when sentenced on June 7. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case was prosecuted as part of Organized Crime Drug Enforcement Task Force (OCDETF) Operation Four Horsemen. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This investigation was led by the DEA Washington Field Office, with significant assistance from the Arlington County Police Department, U.S. Postal Inspector Service, the DEA Baltimore District Office, and the Maryland Transportation Authority Police.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, M. Jay Farr, Arlington County Chief of Police, and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the verdict. Assistant U.S. Attorneys David A. Peters and Katherine E. Rumbaugh 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 is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-7.
Joplin Woman Sentenced to 19 Years for Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., woman was sentenced in federal court today for illegally possessing a firearm.
Tracy Arlene Smith, 48, was sentenced by U.S. District Judge M. Douglas Harpool to 19 years and seven months in federal prison without parole.
On Sept. 25, 2018, Smith was found guilty at trial of one count of being a felon and an unlawful user of cocaine and methamphetamine in possession of a firearm and ammunition.
According to evidence introduced during the trial, law enforcement officers executed a search warrant at Smith’s residence located in Joplin, on June 22, 2017. During the execution of the search warrant, members of the Ozark Drug Enforcement Team seized Smith’s purse, which contained a CDM Prod. Inc., .22-caliber pistol, loaded with six rounds of .22 caliber ammunition. Officers also seized drug paraphernalia.
Under federal law, it is illegal for anyone who is an unlawful user of controlled substances, or who has been convicted of a felony, to be in possession of any firearm or ammunition. Smith, who was on parole at the time she committed the offense, has five prior felony convictions for forgery, four prior felony convictions for possession of a controlled substance, and prior felony convictions for sale of a controlled substance (on three separate occasions) and assault.
This case was prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert and Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the Ozark Drug Enforcement Team and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Jamaican Citizen Pleads Guilty to Conspiracy to Commit Mail and Wire FraudRead the Press Release
SYRACUSE, NEW YORK – Sanjay Burton a/k/a Michael Peart, age 34, and a citizen of Jamaica, pled guilty today to conspiring to commit mail and wire fraud, from September 2011 to May 2014.
The announcement was made by United States Attorney Grant C. Jaquith; Inspector in Charge, U.S. Postal Inspection Service (USPIS), Boston Division, Joseph Cronin; and Acting New York State Police Superintendent Keith Corlett.
In pleading guilty, Burton admitted that he conspired with others to place phone calls from Jamaica to individuals located within the United States, and particularly, to senior citizens residing in the United States. During these calls, Burton would advise the victims that they had won large sums of money in a sweepstakes, lottery, or other event. Burton would then advise the victims that they must first pay taxes or fees in order to collect the winnings. Burton made false promises to the victims that once they paid these taxes or fees, the winnings would be delivered to them.
Burton admitted that in August 2012, he contacted a victim located in Oneida County, New York, and advised her that she had won a $250,000 prize, but that to collect the prize, she would need to pay the associated taxes and fees. This particular victim then wired money to a third party in New York City, who in turn, wired a portion of that money along to Burton in Jamaica. Over the course of the next year, Burton admitted that he caused the victim to send, via mail, Federal Express, or Western Union, at least $107,930.00 in United States currency, to him directly, or to receivers acting on his behalf, as “payment” for taxes or fees on the victim’s purported prize winnings. The victim never received her purported winnings, which did not exist.
Burton was charged via indictment in 2014, and was successfully extradited to the United States from Jamaica in late November 2018, with the assistance of the United States Department of Justice, Office of International Affairs.
Burton pled guilty to one count of conspiring to commit mail and wire fraud, and faces up to 20 years in prison, a term of post-release supervision of up to 3 years, and a fine of up to $250,000, when he is sentenced by Senior United States District Judge Norman A. Mordue on July 15, 2019. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the United States Postal Inspection Service, the New York State Police, and the United States Marshals Service, and is being prosecuted by Assistant U.S. Attorney Katherine A. King.
Jackson Man Sentenced to over 17 Years in Prison for Trafficking MethamphetamineRead the Press Release
Hattiesburg, Miss. – Devontee Cole, 41, of Jackson, was sentenced yesterday by U.S. District Judge Keith Starrett to 211 months in federal prison for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Cole sold "ice", or actual methamphetamine, at homes in Mendenhall and Hattiesburg to a confidential informant on three occasions for a total of 584 grams of actual meth. Cole also sold the informant over three pounds of marijuana. At the time of his arrest, Cole was in possession of a gun, marijuana, methamphetamine and cash.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It was prosecuted by Assistant United States Attorney Annette Williams.
International Money Launderer and Cocaine Trafficker Extradited to the United States for Conspiring to Import Cocaine and Laundering Money Through the Black MarketRead the Press Release
Tampa, FL – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Diego Fernando Cardona Lozano (43, Cali, Colombia), a/k/a “El Doctor” and “Pomada,” with conspiracy to commit international money laundering and conspiracy to import at least five kilograms of cocaine into the United States. If convicted on all counts, Cardona Lozano faces a maximum penalty of life in federal prison. The United States has also notified Cardona Lozano that it seeks the forfeiture of proceeds traceable to the charged offenses, approximately $1.4 million.
According to the superseding indictment, Cardona Lozano conspired to import at least five kilograms of cocaine, knowing that the drugs would be imported into the United States. Cardona Lozano is further charged with conspiring to launder the proceeds of the drug trafficking by using the Black Market Peso Exchange, a financial structure used by drug cartels in Colombia to exchange currencies.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Coast Guard Investigative Service, the Naval Criminal Investigative Service, and the U.S. Southern Command's Joint Interagency Task Force South. 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. The Office of International Affairs and the U.S. Marshals Service provided assistance with the extradition process. The case will be prosecuted by Assistant United States Attorney Dan Baeza.
Indian National Admits Conspiring to Smuggle Foreign Nationals into United States via Commercial FlightsRead the Press Release
NEWARK, N.J. – An Indian national today admitted conspiring to smuggle foreign nationals into the United States via commercial airline flights, U.S. Attorney Craig Carpenito announced.
Bhavin Patel, 38, of India, pleaded guilty to before U.S. District Judge John M. Vazquez to a superseding information charging him with conspiracy to smuggle foreign nationals into the United States for private financial gain.
According to documents filed in this case and statements made in court:
Agents for the Department of Homeland Security Investigations (HSI) received information that a smuggling operation run by Patel was attempting to find methods to bring foreign nationals from India into the United States. The investigation revealed that the smuggling organization recruited Indian nationals and others to pay fees in exchange for passage to the United States.
Beginning in October 2013, an undercover law enforcement officer posing as a smuggler began meeting with Patel in Bangkok, Thailand. Patel told the undercover law enforcement officer that he wanted to smuggle Indian nationals into the United States. On three different occasions, Patel or his conspirator transported the Indian nationals to an airport in Thailand, at which point the undercover law enforcement officer would presumably use his contacts to smuggle them into the United States via commercial airline flights. Patel agreed to wire down payments for each individual to be smuggled into the United States and to pay a balance of tens of thousands of dollars for each individual once the foreign nationals arrived in the United States.
Over the ensuing months, Patel arranged for six Indian nationals to be brought to Thailand for smuggling into the United States via Newark Liberty International Airport. Patel was arrested on Dec. 7, 2018, upon his arrival at Newark Liberty.
The conspiracy charge carries a maximum potential sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for July 9, 2019.
U.S. Attorney Carpenito credit special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Thomas S. Kearney of the U.S Attorney’s Office National Security Unit in Newark.
Illegal Alien Arrested on Child Pornography ChargesRead the Press Release
SYRACUSE, NEW YORK – Anildar Valdimir Roblero-Gomez, age 25, a citizen of Mexico who had been living in Ellisburg, New York, was charged in United States District Court with transportation and possession of child pornography, announced United States Attorney Grant C. Jaquith, New York State Police Acting Superintendent Keith Corlett, and Resident Agent in Charge Jake Healey, Homeland Security Investigations (HSI), Syracuse, New York.
Roblero-Gomez, made his initial appearance in federal court today before United States Magistrate Judge Thérèse Wiley Dancks, who ordered that he be detained pending resolution of the charges. Roblero-Gomez is also being held on an immigration detainer as he is unlawfully present in the United States.
The criminal complaint filed against Roblero-Gomez alleges that in September 2018, he transported child pornography by uploading several images and videos depicting minors engaged in sexually explicit conduct to Facebook. Further, Roblero-Gomez possessed a number of graphic images and videos constituting child pornography on two cellular telephones in his possession at the time of his arrest.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Roblero-Gomez faces a mandatory minimum term of 5 years and a maximum sentence of 20 years in prison, a fine of up to $250,000.00 and a term of supervised release of at least 5 years and up to life, as well as mandatory registration as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the New York State Police and the Department of Homeland Security, Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Sahar L. Amandolare.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Holyoke Man Pleads Guilty to Making a Machine GunRead the Press Release
BOSTON – A Holyoke man pleaded guilty Tuesday, March 12, 2019, in federal court in Springfield in connection with making a machine gun.
Edward V. Laboursoliere, 50, pleaded guilty to one count of knowingly possessing an unregistered firearm, one count of possessing a firearm unidentified by a serial number, and one count of making a firearm, all in violation of the National Firearms Act. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for June 5, 2019.
On April 8, 2018, Laboursoliere’s wife reported to law enforcement that he had been storing hazardous materials in the home. In response to the report, the home was searched, where a short-barrel rifle machine gun was recovered. Laboursoliere admitted to law enforcement that he made the machine gun during the Obama administration.
The charges of receipt and possession of an unregistered firearm, receipt and possession of a firearm unidentifiable by a serial number, and making of a firearm in violation of the National Firearms Act each provide for a maximum sentence of 10 years in prison, three years of supervised release, and a $250,000 fine. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police; and Holyoke Police Chief Manuel Febo made the announcement. Assistant U.S. Attorney Deepika Bains Shukla of Lelling’s Springfield Branch Office is prosecuting the case
Health care executives sentenced to prison for fraudRead the Press Release
ATLANTA - Shailesh (“Shue”) Kothari, the former owner and CEO of Primera Medical Group, Inc., and Timothy McMenamin, Primera’s former Chief Operating Officer have been sentenced for conspiracy to commit healthcare fraud and aggravated identity theft.
“Patients submit to a doctor’s care with the expectation they will be provided the best care possible,” said U.S. Attorney Byung J. “BJay” Pak. “This case unfortunately is an example of greed. The sentences reflect the seriousness of fraudulent health insurance billing, particularly when that billing is coupled with the provider sending false medical reports to patients.”
“Kothari and McMenamin chose to take advantage of patients and the entire health care industry by billing for services that were never provided and falsifying lab reports,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This sentence will serve as a reminder to others that the FBI will not tolerate healthcare providers who engage in schemes that defraud the industry and put innocent patients at risk.”
According to U.S. Attorney Pak, the charges and other information presented in court: Primera Medical Group, Inc., was a health clinic in Atlanta, Georgia, owned by Shailesh Kothari, Chief Executive Officer, and operated by Timothy McMenamin, Chief Operating Officer. Primera claimed to focus its practice on preventative wellness, specifically corporate wellness, concierge care, and allergy testing. Kothari is a Doctor of Chiropractic Medicine who has been licensed to practice in Georgia since January 2009.
Primera hired market research companies across the United States in order to recruit patients to participate in allergy testing. Patients were told that there would be no out-of-pocket expenses and that their insurance would cover the cost of the testing in addition to being paid an amount between $65 to $100 for participating. Patients were tested for allergies regardless of whether they had any symptoms, and without any determination of medical necessity for the testing.During the allergy testing, patients’ blood was drawn, purportedly so that it could be sent to a laboratory for allergy and other testing.
Primera Medical Group billed the patients’ private insurers for multiple procedures, including blood tests. When it billed the private insurers, Primera Medical Group used the National Provider Identifier numbers of multiple doctors, without their knowledge and without those doctors having performed the services that were billed. The doctors also did not order the laboratory tests or the allergy immunotherapy injections billed for virtually every patient.Primera Medical Group also billed for blood tests that were never done. As of July 2016, hundreds of blood tests had not been completed, but were billed for by Primera. When an insurance company requested medical records to support some of the billed services, Kothari asked McMenamin to create false laboratory reports to submit to the insurance company. McMenamin created the false laboratory reports and those false reports were provided to the insurance company to support the fraudulent billing.
Because the laboratory tests were not actually completed for many patients, there were no results to provide patients. When a patient asked for results for laboratory tests that were not completed, McMenamin created false laboratory results for those patients. On multiple occasions, Kothari and McMenamin sent false laboratory reports directly to patients. They did not tell the patients that the results were false. In one specific case, Kothari and McMenamin prepared false lab reports for a five-year-old who was suffering from an unknown reaction.
In total, Primera Medical Group submitted more than 4,500 fraudulent claims using the NPI numbers of unknowing doctors. These claims sought more than $8.5 million in insurance payments.Shailesh (“Shue”) Kothari, 45, of Atlanta, Georgia, and was sentenced to six years, nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,506,181.32. Kothari was convicted on these charges on October 29, 2018, after he pleaded guilty.
Timothy McMenamin, 32, of Atlanta, Georgia, was sentenced to seven years, ten months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,506,181.32. McMenamin was convicted on these charges on November 16, 2018, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation. Assistance was also provided by the Special Investigations Unit for Blue Cross Blue Shield of Georgia.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Fraud Section, prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Haverhill Nurse Charged with Drug TamperingRead the Press Release
BOSTON – A Haverhill licensed practical nurse was charged on March 12, 2019, in federal court in Boston with drug tampering.
Lauren Perrin, 47, was charged by Information with one count of tampering with a consumer product, specifically the Schedule II controlled substance morphine, which is used for pain relief.
While working as a licensed practical nurse at Maplewood Care and Rehabilitation Center in Amesbury, Perrin tampered with three bottles of morphine sulfate prescribed to a hospice patient. In an attempt to avoid detection, she replaced the extracted medication with another liquid. Perrin’s tampering lowered the potency of the three bottles of morphine sulfate to only 4-29% of the intended potency.
The charging statute provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Andrew Lelling; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; and Commissioner Monica Bharel, MD, MPH, of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorney Elysa Wan of Lelling’s Health Care Fraud Unit is prosecuting the case.
The details contained in the information are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Gambino Crime Family Associate Charged in Murder and Robbery of Brooklyn ManRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Anthony Pandrella, an alleged longtime associate of the Gambino organized crime family, with the Hobbs Act robbery and murder of 78-year-old Vincent Zito. The indictment was returned under seal by a federal grand jury on March 7, 2019. Pandrella was arrested last night and is scheduled to be arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.
According to the indictment and detention letter, on October 26, 2018, Pandrella met with Zito, a friend of many years, in Zito’s home. While there, he shot Zito in the back of the head at close range, and stole the assets of Zito’s loan business. Pandrella then cleaned up evidence that might link him to the murder. Later that day, Pandrella returned to Zito’s home and met with his family, friends and relatives and tried to learn the status of law enforcement’s investigation. Pandrella was captured on security camera footage coming to and going from Zito’s residence at the time of the robbery and murder. Additionally, Pandrella’s DNA was recovered from the trigger of the murder weapon.
“As charged in the indictment, Pandrella executed a 78-year-old man in his own home so he could steal from him” stated United States Attorney Donoghue. “With today’s arrest, he will now face justice for these brutal crimes.” Mr. Donoghue extended his grateful appreciation to the Brooklyn District Attorney’s Office for its assistance during the investigation.
“An associate of the Gambino crime family allegedly shoots his friend in the back of the head, returns to the home to visit with the family and then thinks he can dispose of the evidence of the crime,” stated FBI Assistant Director-in-Charge Sweeney. “It takes a certain type of evil to murder a friend in their own home, and then console the grieving relatives. The FBI Joint Organized Crime Task Force hasn’t stopped pursuing members and associates of these crime families and bringing them to justice for their disregard of the law and human life.”
“Stamping out organized crime and the violence that is associated with it remains a priority of the NYPD and its partners in law enforcement,” stated NYPD Commissioner O’Neill. “I want to thank our colleagues at the Eastern District, the FBI, the Brooklyn District Attorney’s office, and the investigators involved in the case for bringing this individual to justice and for their unceasing efforts to combat organized crime and violence.”
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Pandrella faces up to life imprisonment and is eligible for the death penalty.
The government’s case is being prosecuted by the Office’s Organized Crime and Gang Section. Assistant United States Attorney M. Kristin Mace is in charge of the prosecution.
The Defendant:
Anthony Pandrella
Age: 59
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-122 (MKB)
Fugitive Loan Broker Extradited from South Korea Pleads Guilty to Federal Bank Fraud Conspiracy to Fraudulently Obtain over $100 Million in SBA-Backed Business LoansRead the Press Release
Baltimore, Maryland – Loren Young Park, age 52, formerly of Falls Church, Virginia, pleaded guilty today to conspiracy to commit bank fraud, in connection with a scheme to fraudulently obtain business loans guaranteed by the Small Business Administration (SBA), with resulting losses of over $100 million. Loren Park was a fugitive for eight years and was extradited from South Korea to face these charges.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Small Business Administration Inspector General Hannibal “Mike” Ware; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; and Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation.
“Our financial system is based on trust,” said U.S. Attorney Robert K. Hur. “Loren Park and his co-conspirators lied during every aspect of the loan process, cheating taxpayers and lenders, causing more than $100 million in losses, and hurting the chances of future small business owners to obtain loans. I am grateful for the patience and diligence of our law enforcement partners to get Loren Park back from South Korea and bring him to justice.”
According to his plea agreement and other court documents, Loren Park and his brother, Joon Park, owned and operated Jade Capital. Jade Capital brokered small business loans, among other services, for clients and on behalf of Loren Park, Joon Park and their family. According to the plea agreement, Loren and Joon Park and others under their direction encouraged prospective borrowers using the services of Jade Capital to apply for business loans through the SBA’s Section 7(a) program, which guaranteed 75% - 90% of qualified loans made by banks and other commercial lending institutions. Under this program, the principals of the small business seeking the loan were required to invest a certain amount of their own money, called an equity injection, before they qualified for a loan. The banks and other lending institutions making the loan bore the risk of payment default only up to the percentage of the loan not guaranteed by the SBA.
Loren Park admitted that from 2003 until October 2011, he and others under his direction, including Nick Park (no relation), Joo Hyuk “John” Lee, Sang Hyun Kim, and In Jung Ham, submitted SBA loan applications and supporting documentation to loan originators and underwriters on behalf of their clients that contained fraudulent documents, including: bank statements for borrowers that were altered to make it look like the borrowers had more cash to inject into the business they were buying than they in fact did; counterfeit cashiers’ checks and fake gift letters that made it look like the borrowers had more assets at their disposal to use as down payments than they did; fabricated resumes that made it look like the borrowers had more experience running the businesses they sought to purchase than they did; fake tax returns that made it look like the borrowers had greater income than they did; phony interim financial statements that made other businesses the borrowers owned look more profitable than they were; and a number of other misrepresentations.
Loren and Joon Park charged a loan brokerage fee to both the financial institutions and the borrowers for assembling and submitting loan application packages that resulted in the issuance of SBA-guaranteed loans. The fees charged to borrowers were hidden from the financial institutions underwriting the loans. The Parks also had undisclosed ownership interests in businesses involved in some of the transactions and received loan proceeds, unbeknownst to the lenders, in a number of transactions. In one instance, the Parks did not have an ownership interest in a company involved in a transaction but persuaded the seller to assign some of the loan proceeds to them and then converted those proceeds to their own personal use.
Loren Park was on a business trip to South Korea when he learned that he had been indicted in this case. Loren Park had intended to return to the United States, but after learning that he had been indicted, he chose not to return and not face the charges pending against him. Subsequently, he also made several public information requests to the FBI, from South Korea, requesting his criminal record in order to determine whether there were still charges pending against him.
On June 20, 2013, co-defendant Joon Park, a/k/a “Joon Pak,” and “Joon Paik,” age 48, of Falls Church Virginia, was sentenced to 14 years in prison, followed by five years of supervised release, and was ordered to pay a money judgment of $91,449,700 and forfeit all the property involved in the offense.
Co-defendant Nick Park, a/k/a Nochol Park, age 51, of McLean, Virginia, was sentenced to 33 months in prison; and co-defendants Joo Hyuk “John” Lee, age 45, of Richmond, Virginia, and Sang Hyun Kim, age 42, of Fairfax, Virginia, were each sentenced to three years in prison, for conspiracy to commit bank fraud. Kim’s wife, In Jung Ham, age 38, also of Fairfax, was sentenced to a year and a day in prison, for her role in the scheme. Lee was ordered to pay restitution of $1,900,325 and Ham was ordered to pay restitution of $216,472.92. Lee, Kim and Ham were also ordered to forfeit the proceeds of the scheme and pay money judgments of $18,764,900, $13,432,000 and $15,725,000, respectively. Co-conspirator Seung E. Oh, a/k/a Sandy Oh, age 50, of Great Falls, Virginia, a settlement attorney who worked with Joon Park, was sentenced to 51 months in prison, and was ordered to pay a money judgment of $11,832,000, pay restitution of $3,593,432, and forfeit all the property involved in the offense.
Loren Park and the government have agreed that, if the Court accepts the plea, Park will be sentenced to nine years in federal prison for the bank fraud conspiracy. U.S. District Judge Catherine C. Blake has scheduled sentencing for May 24, 2019, at 11:00 a.m.
United States Attorney Robert K. Hur thanked the SBA Office of Inspector General, the U.S. Postal Inspection Service, and the FBI for their work in the investigation. Mr. Hur praised Assistant U.S. Attorneys Leo J. Wise and Martin J. Clarke, who are prosecuting the case.
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Fraud felony nets more than 12 years in prisonRead the Press Release
SAVANNAH, Ga: A man who has made a career of committing felony fraud will spend more than 12 years in federal prison for his role in attempting to defraud victims of nearly $2 million.
Uchechi Ohanaka, a/k/a “Mike,” 44, of Houston, Texas, was sentenced to 125 months in prison by U.S. District Court Senior Judge William T. Moore Jr. after pleading guilty to Conspiracy to Commit Bank Fraud, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Judge Moore also sentenced Ohanaka to serve 24 additional months in prison for violating the terms of supervised release from a previous case.
After his release from the total of 149 months in prison, Ohanaka will serve five years of supervised release. There is no parole in the federal system.
According to court documents and information presented in court proceedings, Ohanaka, a naturalized citizen, has engaged in decades of fraud since immigrating to the United States from Nigeria. He has two prior federal felony fraud-related convictions, including one for Conspiracy to Commit Bank Fraud and Aggravated Identity Theft for which he was serving supervised release when the latest fraudulent activities occurred in 2017.
Ohanaka, working with others, gained access to victims’ bank account information and provided false identification to an individual who went into banks to impersonate wealthy customers. The scheme involved creating fictitious companies using the names of victims, setting up bank accounts linked to the victims’ accounts, and then withdrawing money from the unsuspecting victims’ accounts. A call in furtherance of the conspiracy took place in Savannah.
The U.S. Secret Service arrested Ohanaka on Dec. 5, 2017, after he provided fake identification and account information for an individual so that individual could use it to withdraw more than $200,000 from a victim’s bank account. At sentencing, the Court found Ohanaka responsible for more than $1.7 million in fraud.
“To the victims of fraud, there is little difference between a mugging on the street or a theft using keystrokes on a computer,” said Southern District of Georgia U.S. Attorney Bobby L. Christine. “Both cases rob the victim of their money, their dignity and their sense of security – and either type of theft will result, like this one, in the criminal facing real prison time.”
“Technology has forever changed the way we do business, making everyday financial transactions a prime target for fraud,” said Glen Kessler, Savannah Resident Office Agent in Charge of the U.S. Secret Service. “The Secret Service, in conjunction with its many law enforcement partners, continues to successfully combat these crimes by adapting our investigative methodologies and educating the public.”
The case was investigated by the United States Secret Service and the Houston, Texas, Police Department, and is being prosecuted by the United States Attorney’s Office for the Southern District of Georgia.
Franklin Man Sentenced to 66 Months for Fentanyl TraffickingRead the Press Release
CONCORD – Stephen Marando, 58, formerly of Franklin, New Hampshire, was sentenced to 66 months in prison for fentanyl trafficking charges, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on April 13, 2017, Marando and another individual drove from Franklin, New Hampshire, to Lawrence, Massachusetts in order to buy fentanyl. After they obtained the fentanyl and were on their way back to Franklin, the New Hampshire State Police conducted a traffic stop on their vehicle. During the course of the stop, the other individual attempted to discard a package containing 91 grams of fentanyl that they had been picked up in Lawrence.
Marando pleaded guilty to one count of conspiracy to possess with intent to distribute fentanyl and one count of possession of fentanyl with intent to distribute on July 24, 2018.
“Traffickers who transport fentanyl into New Hampshire should understand that they face serious consequences in federal court” said U.S. Attorney Murray. “Prison sentences await those who trade in this deadly drug. In order to protect our citizens, law enforcement will continue to focus its efforts on stopping the flow of fentanyl into the Granite State.”
“This synthetic opioid is 50-100 times more powerful than heroin and we are not going to idly stand by and let more friends, family members and neighbors get addicted, or die of drug overdoses. Together, with our law enforcement partners, the FBI will continue to use every tool at our disposal to tackle the opioid crisis head on, and put individuals like Mr. Marando behind bars. The goal is and always will be to stem the flow of illegal drugs and reduce crime,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
This matter was investigated by the Federal Bureau of Investigation, the New Hampshire State Police, and the Laconia Police Department. Assistant United States Attorney Anna Krasinski is prosecuting the case.
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Former Postal Worker Pleads Guilty to Stealing MailRead the Press Release
BOSTON – A former United States Postal Service mail carrier pleaded guilty on March 12, 2019, in federal court in Worcester to stealing mail that she was responsible for delivering.
Stephanie Lacroix, 37, of Fitchburg, pleaded guilty to theft of mail by an employee of the United States Postal Service. U.S. District Judge Timothy Hillman scheduled sentencing for July 17, 2019.
Between June and August 2018, Lacroix, who worked for the U.S. Postal Service as a mail carrier in Harvard, stole credit cards and gift cards from the mail that she was responsible for delivering. Lacroix used the cards to make purchases at local gas stations and department stores.
The charge of theft of mail by a postal service employee provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss involved, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office; and Harvard Police Chief Edward D. Denmark made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.
Former Police Officer Sentenced for Federal Corruption ChargesRead the Press Release
St. Louis, MO –Marlon Caldwell, 52, of St. Louis, was sentenced to 13 months in prison for accepting bribes in exchange for un-redacted accident reports while a police officer with the City of St. Louis. He appeared in federal court today before U.S. District Judge Stephen Limbaugh, Jr.
According to court documents, between 2007 and 2016, Dr. Mitchell Davis owned and operated Davis Chiropractic Clinic, now known as City Health and Chiropractic. Located on Lindell Blvd in St. Louis, the clinic primarily provided services to accident victims. Galina Davis assisted Dr. Davis in identifying, soliciting, and scheduling potential accident victims.
According to SLMPD policy, the SLMPD will provide un-redacted accident reports only to persons involved in the accidents, the companies insuring them, or the lawyers representing them. Un-redacted accident reports contain detailed information, including addresses, telephone numbers, birthdates, and insurance information of the occupants of the vehicles. Dr. Davis and Galina Davis knew that the SLMPD would not disclose un-redacted police reports to them. To get around this policy, Galina Davis and Dr. Davis recruited, solicited, and paid individual SLMPD police officers to obtain un-redacted accident reports for them.
Using the information from the un-redacted reports, Galina Davis contacted accident victims, identified herself as Gail, Allison, Kelly, Laura, or Shannon, and offered the accident victims free services at Davis Chiropractic. Dr. Davis and Galina Davis focused on identifying accident victims from neighborhoods where there was a large concentration of low-income victims. They believed that low-income individuals would be more receptive to their solicitations and offers of free services.
Caldwell admitted to facilitating this exchange of cash for reports. Caldwell pleaded guilty to conspiracy to accept bribes on December 7, 2018. Co-defendant Mark Taylor admitted to a substantive count of bribery and will be sentenced April 3, 2019.
This case was investigated by the Federal Bureau of Investigation and the United States Department of Health and Human Services, Office of Inspector General. Assistant United States Attorneys Dorothy McMurtry and Reginald Harris are handling the case for the U.S. Attorney’s Office.
Former Owner/Operator of Fall River Glass Company Pleads Guilty to Federal Payroll Tax ChargesRead the Press Release
BOSTON – The former owner of a now closed Fall River-based glass company pleaded guilty in federal court in Boston on March 11, 2019, to charges that he failed to report and pay over to the IRS taxes he had withheld from his company’s employees.
Moses Rapoza, 83, of Lakeville, pleaded guilty to one count of filing a false tax return and 11 counts of failing to pay over to the IRS the taxes he withheld from employee wages. U.S. District Judge Richard G. Stearns scheduled sentencing for June 13, 2019.
Rapoza was described as the former owner and operator of Global Specialty Glass Contractors Inc., a glass installation business previously located in Fall River. For every calendar quarter from 2011 through 2014, Rapoza withheld income taxes and Federal Insurance Contributions Act (FICA) taxes from wages he paid to his employees, but failed to pay those taxes to the IRS on behalf of the employees. In addition, Rapoza filed a false Form 941 tax return with the IRS, knowing that it understated the amount of wages he had paid to employees.
The charge of filing a false tax return provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000. The charge of failure to pay over taxes provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. Assistant U.S. Attorney Victor A. Wild of Lelling’s Security and Financial Fraud Unit is prosecuting the case.
Former HUD Employee Pleads Guilty to Accepting Bribes from Government ContractorRead the Press Release
WASHINGTON – Kevin Jones, 48, a former contract oversight specialist with the U.S. Department of Housing and Urban Development (HUD), pled guilty today to a federal bribery charge stemming from a scheme in which he provided non-public information about pending HUD contracts to a business owner in exchange for tickets to sporting events, travel, and cash.
The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Reginald O. Sessoms, Special Agent in Charge, Special Investigations Division, HUD Office of Inspector General.
Jones, of Laurel, Md., pled guilty in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 15 years in prison and potential financial penalties. Under federal sentencing guidelines, Jones faces a likely range of 30 to 37 months in prison and a fine of up to $100,000. He also has agreed to pay a forfeiture money judgment of $50,302, representing the value of the gifts that he received in the scheme.
The Honorable Randolph D. Moss scheduled sentencing for June 13, 2019.
According to a statement of offense signed as part of the plea, Jones began work at HUD in 1999. His responsibilities included serving as the technical point of contact for certain contracts and reviewing contractor performance. By virtue of his position, he had access to bid, proposal, and source selection information about a number of HUD contracts.
The bribery charge involves Jones’s dealings with Charles Thomas, the sole owner and president of a company in Maryland that provided technology services to agencies of the federal government and educational services to public school children in the Washington, D.C. area.
Between at least 2010 and 2018, according to the statement of offense, Thomas provided Jones with tickets to sporting events, travel, and cash in exchange for Jones providing Thomas and his company with non-public information about pending HUD contracts. In particular, the information and recommendations that Jones provided gave Thomas an unfair competitive advantage in obtaining two contracts a valued at more than $4.5 million. Jones himself approved invoices totaling nearly $3.8 million for work done under one of the two contracts.
According to the statement of offense, from 2010 through 2017, Thomas and his company provided Jones with a variety of gifts and benefits, including more than $17,000 worth of tickets to Washington Redskins games and three Super Bowls; $1,700 in Washington Wizards tickets, more than $3,200 in hotel accommodations; more than $3,600 in travel expenses, more than $13,000 in cash and checks, meals, a camera, and a pair of basketball shoes.
In a related prosecution, another former HUD employee, LaFonda Lewis, pled guilty in January 2019 to providing non-public information to Thomas in exchange for money, tickets to sporting events, and other things of value. As part of her plea, she has agreed to pay a forfeiture money judgment of $23,055, representing the illegal proceeds. Lewis was a former supervisory contract oversight specialist. Lewis, 57, of Lusby, Md., is to be sentenced on March 28, 2019.
Thomas, 45, of Lusby, Md., pled guilty in May 2018 to one count of conspiracy to commit bribery and two counts of conspiracy to pay gratuities and violate the Procurement Integrity Act. Thomas is awaiting sentencing. In his guilty plea, Thomas admitted to paying bribes to the two HUD employees as well as to an employee of the District of Columbia Office of the State Superintendent of Education (OSSE) in return for payments on contracts involving that agency.
The former District of Columbia employee, Shauntell Harley, 49, of Washington, D.C., was sentenced in July 2018 to 56 months in prison for accepting bribes in return for clearing the way for payments to be made to Thomas and another businessman.
In announcing the sentence, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Special Agent in Charge Sessoms commended the work of those who investigated the case from the FBI’s Washington Field Office, HUD’s Office of the Inspector General, and the Office of the Inspector General for the District of Columbia.
They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Joshua Fein and former Paralegal Specialist Kristy Penny. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Peter C. Lallas, who is investigating and prosecuting the matter.
Former District Government Employee Pleads Guilty to Scheme Involving over $1.4 Million in Fraudulently Issued BenefitsRead the Press Release
WASHINGTON – A former employee of the District of Columbia Department of Human Services (DHS) pled guilty today to a scheme in which he defrauded the agency of more than $1.4 million by steering inflated food stamp and temporary assistance benefits to people who were not entitled to receive them. In return, he received cash kickbacks and sexual favors
The announcement was made by U.S. Attorney Jessie K. Liu, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office, District of Columbia Inspector General Daniel W. Lucas, and Special Agent in Charge Maureen R. Dixon of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.
The former employee, Demetrius McMillan, 48, of Washington, D.C., pled guilty in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 15 years in prison and potential financial penalties. Under federal sentencing guidelines, McMillan faces a likely range of 108 to 135 months in prison and a fine of up to $300,000. He also has agreed to pay $1,456,985 in restitution, forfeit $74,811 in cash seized in a search of his residence, and pay an additional forfeiture money judgment.
The Honorable Senior Judge Paul L. Friedman scheduled sentencing for June 19, 2019.
McMillan’s scheme targeted and defrauded the Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamps program, and Temporary Assistance for Needy Families (TANF), which consists of cash benefits. Benefits in both programs were provided to clients via electronic benefit cards.
According to plea documents, McMillan was a social service representative at a DHS service center in Southeast Washington. Social service representatives reviewed and processed applications for SNAP and TANF payments, as well as “underpayments.” Underpayments occurred when DHS clients did not receive the SNAP or TANF payments for which they were eligible. These could be caused by errors by DHS or by the clients.
Social service representatives were permitted to authorize up to $2,000 in underpayments at a time without supervisory approval. As part of his work, McMillan also had access to the computer system used by DHS to manage services, including the creation of underpayments.
Between April 25, 2018, and July 25, 2018, McMillan used his access to the computer system to authorize approximately 779 fraudulent SNAP and TANF underpayments for approximately 305 beneficiaries, totaling approximately $1,456,985. According to the plea documents, he authorized these underpayments knowing that the beneficiaries were not entitled to them. In exchange for authorizing these fraudulent underpayments, he solicited more than $380,000 in cash kickbacks from the beneficiaries, and accepted at least $150,000 in cash kickbacks. McMillan also solicited and accepted sexual favors from some of the beneficiaries in exchange for issuing fraudulent underpayments.
In order to avoid detection, McMillan intentionally ensured that each fraudulent underpayment transaction fell below the $2,000 threshold for which supervisory approval was required. The average fraudulent SNAP underpayment he created was approximately $1,757, and the average fraudulent TANF underpayment was $1,986.
McMillan recruited beneficiaries to the scheme by soliciting D.C. DHS clients who were eligible for SNAP and TANF benefits and with whom he had a previous working relationship. He also used third parties to recruit beneficiaries to the scheme, For the most part, the agreement was that in exchange for authorizing fraudulent SNAP and TANF underpayments in a particular beneficiary’s name, McMillan would get approximately $1,000 out of each fraudulent TANF underpayment he authorized for that beneficiary.
All told, 296 of the 305 beneficiaries for whom Defendant McMillan authorized fraudulent underpayments were women. In addition to soliciting and accepting cash kickbacks from these female beneficiaries, McMillan engaged in texting of a sexual nature with at least 50 of them, frequently soliciting sexual favors in exchange for authorizing fraudulent underpayments. In his guilty plea, McMillan admitted that he accepted sexual favors from 10 to 20 female beneficiaries in exchange for authorizing fraudulent underpayments.
This case is being investigated by the FBI’s Washington Field Office, the District of Columbia Office of the Inspector General, and the U.S. Department of Health and Human Services Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Emily A. Miller, with assistance from Paralegal Specialist Aisha Keys.
Five men charged in 71-count indictment with defrauding federal agencies by paying bribes and fraudulently obtaining at least $15 million in government contracts they were not entitled to though disabled-veteran set asides and other programsRead the Press Release
Five men were charged in a 71-count indictment with engaging in conspiracies to defraud several federal agencies by paying bribes and fraudulently obtaining at least $15 million in government contracts they were not entitled to though disabled-veteran set asides and other programs.
Indicted are: James A. Clark, 61, of Chipley, Florida, who owned several businesses, including Enola Contracting Services, Inc.; Eric L. Hogan, 59, of Bonaire, Georgia, who owned P&E Construction, LLC; Kenneth A. Latham, 73, of Albany, Georgia, who was employed by the U.S. Navy as a civilian engineering technician; James K. Alford, 55, of Bowling Green, Kentucky, who owned K&S Constructors, Inc., and Harvey Daniels, Jr., 40, of Marianna, Florida, who owned HDJ Security, Inc.
The charges include conspiracy to commit honest services wire fraud, conspiracy to commit wire fraud, wire fraud, conspiracy to submit false claims, false claims and major fraud.
Construction projects detailed in the indictment include contracts at the Marine Corps Logistics Base in Albany, Georgia, the VA Medical Center in Louisville, Kentucky, and the NASA Plum Brook Station near Sandusky, Ohio.
According to the indictment:
Federal departments and agencies, as directed by Congress, work with the Small Business Administration to award portions of contracts to small businesses, with specific goals for small disadvantaged business, including service-disabled veteran-owned small businesses.
Businesses must register and meet a number of criteria to be classified as small disadvantaged business – also known as the 8(a) program -- such as being at least 51 percent owned and controlled by socially and economically disadvantaged individuals. Businesses must also meet a number of criteria to be classified as a service-disabled veteran-owned small business, such as being at least 51 percent owned by a veteran with a service-connected disability who controls the management and daily operations of the company. Service-disabled veteran-owned small businesses are permitted to enter into joint ventures with other companies but must meet specific requirements to do so.
The defendants and others engaged in several criminal schemes designed to deprive the government of its right to honest services of its employees through bribes and kickbacks, and to submit false claims and defraud the United States by obtaining government contracts set aside for qualified companies to which they were otherwise ineligible to obtain by fraudulently using proxy and pass-through companies.
P&E, through Hogan and Clark, made false statements, misrepresentations and omissions of facts. Hogan on several occasions certified P&E was a service-disabled veteran-owned small business. It also registered as a joint venture with Enola, with Hogan listed as president and Clark as vice president of the joint venture. HDJ Security was enrolled in the 8(a) program. Daniels self-identified as the president of HDJ, the sole owner of the company and to be socially disadvantaged.
In one scheme, Latham accepted a series of bribes and kickbacks from Hogan and Clark -- including cash, meals, a hunting trip, a fence, and an all-terrain vehicle -- in return for Latham using his official position with the Navy to benefit Hogan, Clark and their businesses. These benefits included assistance in finding and securing government contracts, approval of invoices for payments to pass-through companies used by Hogan and Clark to obtain set-aside contracts for which their companies were not otherwise eligible, and concealing Clark and Hogan’s use of pass-through companies to obtain bonding.
Another scheme involved defrauding the VA and the TK by fraudulently representing that P&E and Hogan independently qualified for the service-disabled veteran-owned small business program despite Clark’s involvement in providing bonding for and equity ownership in P&E.
Clark, Hogan, Alford, Daniels and others defrauded the government by using purported service-disabled veteran-owned small businesses and 8(a) businesses as proxies to bid on and obtain set-aside contracts.
Arrow Construction, which was registered in the 8(a) program, was awarded a $2.8 million contract for work at the Marine Corps Logistics Base in Albany, Georgia, in September 2011. Clark and Arrow officials Kent Reynolds and Jennifer Dillard (who both have been previously charged in the Northern District of Ohio) agreed that about 90 percent of the value of the contract was passed through to Clark and Enola, in violation of the 8(a) program.
HDJ was awarded a contract for work at the Marine Corps Logistics Base in Albany, Georgia, in September 2012. HDJ was paid approximately $2.6 million. Clark, Hogan and Daniels agreed to pass through approximately 95 percent of the value of the contract to Clark, Hogan, Enola and P&E, in violation of the terms of the 8(a) program.
The VA in June 2011 awarded a contract to P&E Construction for work at the VA Medical Center in Louisville, Kentucky. The VA paid P&E approximately $4.5 million that the company would not have received if the VA knew P&E was acting as a pass-through for K&S and that it was back-bonded by Clark and Enola.
P&E submitted a winning bid in February 2013 for a contract for construction services at the NASA Plum Brook Station near Sandusky, Ohio. NASA paid P&E approximately $5.6 million that the company would not have received if NASA knew it was acting as a pass-through for K&S and that P&E was back-bonded by Clark and Enola.
“These programs were created to help companies owned by disabled veterans and other struggling small businesses,” U.S. Attorney Justin E. Herdman said. “The defendants in this case took advantage of these programs to fraudulently obtain taxpayer money.”
Michael J. Missal, Inspector General for the U.S. Department of Veterans Affairs, said: “The VA’s Service Disabled Veteran Owned Small Business Program supports qualified veterans who have served and sacrificed for their country. We will continue to work with our law enforcement partners to identify and prosecute individuals who wrongfully and fraudulently exploit these federal contracting opportunities that are meant only for service-disabled veterans.”
“I commend the outstanding investigative efforts of the NASA OIG, NCIS, DCIS, SBA-OIG, VA-OIG, DCAA, and AFOSI Agents, and the work of the USAO for the Northern District of Ohio,” said NASA Inspector General Paul Martin. “Their teamwork uncovered evidence of a criminal scheme that prevented legitimate small businesses from obtaining lucrative contracts that the defendants obtained through fraud.”
"The acceptance of bribes and kickbacks is both a violation of law and the trust the Department of the Navy places in its employees," said NCIS Director Andrew Traver. "NCIS will continue to protect the Department of the Navy from these fraudulent schemes to ensure readiness of the fleet."
"Protecting the U.S. Department of Defense (DoD's) contracting process and ensuring the integrity of DoD employees are top investigative priorities for the Defense Criminal Investigative Service (DCIS)," stated Leigh-Alistair Barzey, Special Agent-in-Charge of the DCIS Northeast Field Office. "Today's indictment of five individuals, including an employee of the U.S. Navy, is the direct result of a joint investigative effort and demonstrates the DCIS' ongoing commitment to work with its law enforcement partners and the U.S. Attorney's Office to identify, investigate and prosecute those who seek to fraudulently profit at the expense of the DoD's procurement system."
"Conspiring to commit fraud is no way to gain or extend access to SBA’s set-aside contracting programs,” said SBA Inspector General Hannibal “Mike” Ware. “OIG is committed to rooting out fraud in SBA’s programs and bringing those responsible to justice. I want to thank the U.S. Attorney’s office and our law enforcement partners for their support and dedication to pursuing justice in this case.”
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by National Aeronautics and Space Administration -- Office of Inspector General, the Defense Criminal Investigative Service, Naval Criminal Investigative Service, Department of Veterans Affairs -- Office of Inspector General, Small Business Administration -- Office of Inspector General, Defense Contract Audit Agency and the Air Force Office of Special Investigations. It is being prosecuted by Assistant U.S. Attorneys Om Kakani and Alejandro A. Abreu.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Five from New York indicted for defrauding elderly victim in OhioRead the Press Release
A federal grand jury returned a nine-count indictment charging Haki Toplica, 24, Luisa Rivera Goris, 22, Kathryn Lissette De La Torre, 24, Haider Islam, 21, and Robert Rosso, 27, all of New York, with conspiracy to commit wire fraud, wire fraud and interstate transportation of stolen property.
The defendants conspired to defraud and take money and property from a 69-year-old victim in Ohio by making false statements regarding fictitious fees and costs associated with purported loans by collecting money from the victim, and obtaining titles to property owned by the victim. This took place between June 2018 through about September 26, 2018, according to the indictment.
For example, Toplica told the victim around June 2018 that in order to obtain a $475,000 loan to pay off his creditors, the victims would have to pay fees associated with the loan via wire. The loan fees were fictitious, according to the indictment.
A month later, Toplica told the victim the victim would have to pay a $100,000 fee to obtain a $3 million loan. There was no loan, according to the indictment.
In August 2018, the victim signed over approximately 55 vehicles and equipment to Toplica to secure a $10 million loan that did not exist, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique
to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation was conducted by Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
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Federal jury finds Chalmette resident guilty of using Monroe property to illegally receive disaster fundsRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced today that Chad Lightfoot, 47, of Chalmette, Louisiana, was convicted by a federal jury for using an address at a Monroe house that he did not live in to receive disaster payments. The jury returned the guilty verdict after deliberating for approximately one hour. United States District Judge Terry A. Doughty presided over the trial that began Monday, March 11, 2019 and ended today.
Evidence presented at trial showed that Lightfoot owned an abandoned, unoccupied property in Monroe, but lived in Chalmette. After a federal disaster was declared on March 13, 2016 following severe storms and flooding in Northeast Louisiana, Lightfoot applied for disaster grant assistance with the Federal Emergency Management Agency (FEMA) for damage to the property he owned on South Fourth Street in Monroe. Lightfoot listed his primary residence as Monroe on his FEMA application, and prior to the property’s inspection by FEMA on March 30, 2016, Lightfoot obtained a Louisiana Identification Card to appear as though he lived there. He also submitted a fraudulent cable bill to FEMA to establish proof of occupancy. As a result of his fraudulent claims, FEMA sent Lightfoot $23,684 on April 4, 2016 for repairs. Lightfoot also submitted two appeals to FEMA, which included $115,669 and $122,500 in repair estimates.
Lightfoot faces up to 30 years in prison, five years supervised release, and a $250,000 fine per count, and restitution. The court set sentencing for July 3, 2019.
The Department of Homeland Security, Office of Inspector General, conducted the investigation. Assistant U.S. Attorneys Tennille M. Gilreath and Allison D. Bushnell are prosecuting the case.
Federal Grand Jury Returns Superseding Indictment against Five Amalia, New Mexico Compound DefendantsRead the Press Release
A federal grand jury sitting in Albuquerque, New Mexico returned a superseding indictment on March 13 charging Jany Leveille, 36, Siraj Ibn Wahhaj, 40, Hujrah Wahhaj, 38, Subhanah Wahhaj, 36, and Lucas Morton, 41, with federal offenses related to terrorism, kidnapping and firearms violations. The announcement was made by Assistant Attorney General John C. Demers for the National Security Division, U.S. Attorney John C. Anderson for the District of New Mexico, Assistant Director Michael McGarrity of the FBI’s Counterterrorism Division and Special Agent in Charge James Langenberg of the FBI’s Albuquerque Field Office.
These defendants were previously charged by indictment on Sept. 11, 2018, with a conspiracy relating to the possession of firearms and ammunition by an alien illegally and unlawfully in the United States. The original indictment also charged Leveille with possessing firearms and ammunition as an alien illegally and unlawfully in the United States.
The superseding indictment charges all of the defendants with participating in a conspiracy from October 2017 to August 2018 to provide material support and resources, including currency, training, weapons, and personnel, knowing and intending that they were to be used in preparation for and in carrying out attacks to kill officers and employees of the United States, in violation of 18 U.S.C. § 2339A.
“The indictment alleges that the defendants conspired to provide material support in preparation for violent attacks against federal law enforcement officers and members of the military,” said Assistant Attorney General Demers. “Advancing beliefs through terror and violence has no place in America, and the National Security Division continues to make protecting against terrorism its top priority.”
“The superseding indictment alleges a conspiracy to stage deadly attacks on American soil,” said U.S. Attorney John C. Anderson. “These allegations remind us of the dangers of terrorism that continue to confront our nation, and the allegation concerning the death of a young child only underscores the importance of prompt and effective intervention by law enforcement. I commend the FBI, DHS, ATF, Taos County Sheriff’s Office, and the Eighth Judicial District Attorney’s Office for their ongoing diligence and outstanding work in identifying and disabling imminent threats of targeted violence. ”
“The defendants in this case allegedly were preparing for deadly attacks and their targets included law enforcement and military personnel, the very people who are committed to protecting all of us,” said Assistant Director McGarrity. “We will continue to work with our law enforcement partners to uncover and put a stop to acts of terrorism.”
“During this lengthy and complex investigation, the safety of the community as well as that of the children at the Amalia compound has been our priority,” said Special Agent in Charge Langenberg. “Cases such as these sometimes take a while, but the FBI will never give up until justice is done.”
As alleged in the superseding indictment, these defendants conspired to provide material support in preparation for violent attacks against officers and employees of the United States. According to the superseding indictment, Siraj Ibn Wahhaj and Hujrah Wahhaj gathered firearms and ammunition, and all of the defendants transported people, firearms, and ammunition across state lines and constructed a training compound where they stored firearms and ammunition. The superseding indictment further alleges that Siraj Ibn Wahhaj and Morton constructed and maintained a firing range at the compound where they engaged in firearms and tactical training for other compound occupants, and that Leveille and Morton attempted to recruit others to their cause.
The superseding indictment also charges Leveille, Siraj Ibn Wahhaj, and Morton with conspiring to attack and kill officers and employees of the United States, in violation of 18 U.S.C. § 1117. It was a part and an object of the conspiracy that the defendants would kill officers and employees of the United States, specifically, Federal Bureau of Investigation employees, government officials, and military personnel.
The superseding indictment also charges Leveille, Hujrah Wahhaj, Subhanah Wahhaj, and Morton with kidnapping and conspiracy to commit kidnapping. According to the superseding indictment, they kidnapped a child under the age of eighteen in Georgia and transported the child to New Mexico, where they concealed and held the child, resulting in the child’s death.
The superseding indictment also includes the charges from the original indictment. All of the defendants are currently in custody awaiting trial.
Indictments are only accusations. Defendants are presumed innocent unless proven guilty in a court of law.
The Albuquerque Division of the Federal Bureau of Investigation investigated this case, with the assistance of the U.S. Department of Homeland Security, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Taos County Sheriff’s Office, and the Eighth Judicial District Attorney’s Office. The prosecution of the case is being handled by Assistant U.S. Attorneys George C. Kraehe and Kimberly A. Brawley and Trial Attorneys Troy A. Edwards, Jr. and David Cora of the National Security Division’s Counterterrorism Section.
Fake Nurse Pleads Guilty to Health Care Fraud, Social Security Fraud and Aggravated Identity FraudRead the Press Release
St. Louis, MO – Benjamin David Danneman, 37, of Eureka, pled guilty on March 13, 2019 to federal charges of healthcare fraud, social security fraud and aggravated identity fraud. He appeared in federal court before U.S. District Judge Ronnie White who accepted his guilty plea and set sentencing for June 12, 2019.
According to court documents, Danneman was not a nurse, but used the name and nursing license number of an actual licensed registered nurse to obtain work in the St. Louis area at Alexian Brothers Sherbrooke Village, the Rehabilitation Institute of St. Louis, and Des Peres Healthcare. Danneman was hired by Des Peres as the assistant director of nursing at the Quarters of Des Peres at an annual salary of $68,000. At these health care facilities, he was responsible for the day to day care of patients needing skilled nursing care. Further, according to court documents, during 2017 and 2018 in at least six states, Danneman used the names, Social Security account numbers, nursing license numbers, and other personal identifying information of several persons to rent apartments and to obtain a driver’s license, loans, credit cards, and insurance.
“Ensuring that our beneficiaries are provided quality care by appropriately licensed providers is a top priority of our office,” said Steven Hanson, Special Agent in Charge of the Kansas City Region of the United States Department of Health and Human Services, Office of Inspector General. “Individuals who steal the identity of licensed providers and then seek to provide services to Medicare beneficiaries will be aggressively investigated by our office.”
Healthcare fraud charge carries a penalty up to 10 years’ imprisonment and a fine of more than $250,000; social security fraud charge carries a penalty up to 5 years’ imprisonment and a fine of $250,000; and aggravated identity theft charge carries a mandatory two year period of incarceration and a fine of $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 the U.S. Department of Health and Human Services – Office of the Inspector General and the U.S. Secret Service. Assistant U.S. Dorothy McMurtry is handling the case for the U.S. Attorney’s Office.
Eight Reading Residents Indicted on 21 Counts of Drug Distribution, Firearms OffensesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that eight individuals from Reading were indicted yesterday by a federal grand jury on 21 counts of drug distribution and firearms offenses. The individuals are:
- Jesus Feliciano-Trinidad, a/k/a “Chewy,” a/k/a “Che,” 29;
- Sharon Melendez-Ortiz, a/k/a “La Rubia,” 39;
- Fitzgerald Daliot-Rios, 29;
- Yomar Velazquez-Figueroa, a/k/a “Negrito,” 21;
- Dewayne Quinones, a/k/a “Hombre,” 25;
- Gisela Mendez, 42;
- Mariela Alvarado, a/k/a “Onyx,” 38; and
- Owen Malave-Medina, 22.
The charges stem from a months’ long investigation by the U.S. Attorney’s Office, the Berks County District Attorney’s Office, the Berks County Detectives, the Reading Police Department, and the FBI into the receipt, processing, and distribution of a wide variety of drugs including methamphetamine, heroin, fentanyl, cocaine, and crack cocaine. According to the indictment, the defendants used a number of buildings, residences, firearms, and acts of violence to further their drug dealing efforts in and around the Reading area. The indictment further alleges that various defendants turned to proposed violence, conspiring to shoot certain individuals and commit a kidnapping in February 2018.
If convicted, defendants Feliciano-Trinidad, Melendez-Ortiz, Velazquez-Figueroa, Daliot-Rios, Alvarado, and Malave-Medina face up to life imprisonment. If convicted, defendants Quinones and Mendez face up to 40 years imprisonment.
“These are serious federal charges with serious federal penalties,” said U.S. Attorney McSwain. “My Office is committed to working with the Berks County District Attorney’s Office and all of our federal, state, and local law enforcement partners to keep the Reading community safe.”
“If convicted of the alleged crimes, this drug trafficking organization would be one of the most violent organizations that we have ever dealt with in Berks County,” said Berks County District Attorney John. T. Adams.
“Violent drug gangs have such a corrosive effect on society,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Their crimes affect people’s peace of mind and quality of life. The FBI is committed to supporting our local law enforcement partners as we all work toward safer communities. We’re determined to make a difference, one corner, one block, one neighborhood at a time.”
The case was investigated by the Berks County District Attorney’s Office, the Berks County Detectives, the Reading Police Department, and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Jonathan B. Ortiz and Kelly A. Lewis Fallenstein, and Special Assistant United States Attorney Rosalynda Michetti.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Dominican National Pleads Guilty to Distributing Fentanyl and HeroinRead the Press Release
BOSTON – A Dominican national residing in Lawrence pleaded guilty today in federal court in Boston to distributing a mixture of fentanyl and heroin.
Jorge Aguasvivas, 39, pleaded guilty to one count of distribution of 40 grams or more of fentanyl and 100 grams or more of heroin. U.S. District Court Judge Indira Talwani scheduled sentencing for June 19, 2019.
On Aug. 2, 2018, during a joint federal and state law enforcement operation in Lawrence, Aguasvivas delivered 139 grams of a substance containing a mixture of fentanyl and heroin to an undercover agent.
Based on Aguasvivas’s prior criminal history, he is subject to enhanced penalties. The charge of distribution of 40 grams or more of fentanyl and 100 grams or more of heroin carries a mandatory minimum penalty of 10 years and up to life in prison, a minimum of eight years of supervised release, and a fine of up to $8 million. Aguasvivas will be subject to deportation upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Massachusetts Attorney General Maura Healey; and Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Dominican National Arrested for Fraudulent Applications for Passport and MassHealth BenefitsRead the Press Release
BOSTON – A Dominican national was arrested on March 12, 2019, and charged in federal court in Boston in connection with fraudulent statements on a passport application and an application for MassHealth benefits.
Hidel Romero Sanchez, 42, a Dominican national residing in Dorchester, was charged with making a false statement on a passport application and a false statement on an application for MassHealth benefits. He appeared in federal court in Boston on March 12, 2019, and was ordered detained pending a detention hearing scheduled for March 18, 2019.
The charge of false application for a passport provides for a sentence of no greater than 10 years in prison and the charge of making a false statement in a health care matter provides for a sentence of no greater than five years in prison. Each charge provides for up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Bill Abely of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Delaware Pipe Bomber Pleads Guilty in Federal CourtRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced that Mark Consiglio, 49, of Elsmere, Delaware pled guilty today in the United States District Court for the District of Delaware to possessing a destructive device, commonly known as a pipe bomb. Consiglio is scheduled to be sentenced before the Honorable Richard G. Andrews, United States District Judge for the District of Delaware on July 2, 2019. He faces a maximum penalty of 10 years of imprisonment, three years of supervised release, a $250,000 fine, and a $100 special assessment.
According to court documents and statements made in open court, Consiglio detonated a pipe bomb at his estranged wife’s home in Elsmere in the early morning hours of March 12, 2018 before fleeing the scene. Two 911 callers described the explosion to police.
Two occupants were home at the time of the pipe bomb explosion. The pipe bomb shattered the front living room window of the house where one of the occupants was sleeping at the time. Shrapnel from the explosion was found inside the living room.
Consiglio was detained by police nearby. Subsequent searches of his home yielded: three more pipe bombs; a .38 caliber revolver; materials used to make a pipe bomb, including PVC, fuse wire, ball bearings, and gunpowder; a World War II-era flare launcher that had been modified to accept 9mm ammunition; and a book titled “CIA improvised sabotage devices” that was dog-eared to the page on “incendiary devices.” At the time he set off the pipe bomb, Consiglio was already facing state charges for threatening to kill his wife.
U.S. Attorney Weiss offered the following statement, “The defendant’s brazen violence endangered not only his family members but our community. My Office will prosecute any such actions to the full extent of the law.”
“Our mission is to ensure that anyone who commits violent acts like this is identified, investigated, and brought to justice,” said ATF Baltimore Special Agent in Charge Rob Cekada. “ATF will continue to work hand in hand with our partners in protecting the safety of Delaware communities.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives in coordination with the Office of the State Fire Marshal and the Elsmere Police Department. U.S. Attorney Weiss also wishes to thank the New Castle County Police Department for its assistance. The case is being prosecuted by Assistant U.S. Attorney Alexander P. Ibrahim.
Crow Agency woman admits assaulting elderly man while on methamphetamineRead the Press Release
BILLINGS – A Crow Agency woman admitted today to attacking and seriously injuring an elderly man while she was under the influence of methamphetamine, U.S. Attorney Kurt Alme said.
Melissa Ann Prettypaint-Alvarado, 41, pleaded guilty to assault resulting in serious bodily injury during a hearing before U.S. Magistrate Judge Timothy J. Cavan. Judge Cavan will recommend Prettypaint-Alvarado’s plea be accepted by U.S. District Judge Susan P. Watters, who is hearing the case.
Prettypaint-Alvarado faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. She was detained.
Prosecutors said evidence would show that the Bureau of Indian Affairs police responded on Nov. 18, 2018 to an assault that occurred at a Crow Agency residence on the Crow Reservation. The 77-year-old victim said Prettypaint-Alvarado got angry with him and attacked him while he was lying on a bed. Prettypaint-Alvarado hit him in the face and head, tried to strangle him with a belt, pulled out a clump of his hair and bit his hand.
The victim ultimately was taken to Billings Clinic for treatment of injuries to his face, shoulder and eye area. After the assault, the victim needed a cane to walk.
In an interview with law enforcement, Prettypaint-Alvarado admitted she is a meth user and was on meth at the time she assaulted the victim.
Assistant U.S. Attorney Lori Suek prosecuted the case, which was investigated by the FBI.
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Crow Agency man sentenced for assault, witness tamperingRead the Press Release
BILLINGS—A Crow Agency man convicted of beating his partner on the Crow Reservation and of trying to get her to not testify about the assaults was sentenced on March 13 to a total of 78 months in prison, with credit for 106 days for time spent in tribal custody, and three years of supervised release, U.S. Attorney Kurt Alme said.
Lansing Zachary Rock Above, 34, pleaded guilty in November to assault resulting in substantial bodily injury to a spouse or intimate partner and to tampering with a witness.
U.S. District Judge Susan P. Watters presided.
“Offenders who assault women will be prosecuted,” U.S. Attorney Alme said. “Those who also try to intimidate or threaten victims will be prosecuted again to the full extent of the law. Victims need to know they can come forward and we will use the criminal justice system to protect them,” Alme said.
Prosecutors said Rock Above beat and strangled his intimate partner on Feb. 23 and 24, 2018 in Crow Agency on the Crow Reservation. The victim was treated for bruises and injuries to her head, neck and teeth. In March 2018, Rock Above called the victim five times on a recorded phone line from the Big Horn County Detention Facility, in Basin, Wyo., and attempted to convince the victim to not testify against him and to say nothing happened. In one of the calls, Rock Above said his case would be dismissed and asked the victim, “You got my back, right?”
Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the Bureau of Indian Affairs and FBI.
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Construction Company Executive Indicted for Defrauding New York City School Construction AuthorityRead the Press Release
A 22-count indictment was unsealed today in federal court in Brooklyn charging Rakesh Kumar, the President of Orba Construction Company (“Orba”), with conspiracy to commit mail and wire fraud, and 21 counts of mail fraud and wire fraud. The charges stem from Kumar’s alleged misrepresentations to the New York City School Construction Authority (“SCA”) regarding the number of hours worked and wages paid by Orba to employees on New York City public school construction projects. Kumar was arrested today and is scheduled to be arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Margaret Garnett, Commissioner, New York City Department of Investigation, and Michael Mikulka, Special Agent-in-Charge, U.S. Department of Labor, Office of Inspector General, announced the charges.
As alleged in the indictment, between 2014 and 2018, Kumar submitted false certified payrolls to the SCA for work performed by Orba employees on SCA-funded projects. These payroll forms falsely stated that Orba had paid its employees the prevailing wage, as required by the New York State labor law and labor agreements with the SCA, when in fact the employees had been paid far less, often in cash or by checks issued by a related company owned by Kumar.
“As alleged, through his actions, Kumar cheated laborers, who toiled many long days at manual labor, out of their honest and hard-earned wages,” stated United States Attorney Donoghue. “This Office and our law enforcement partners will vigorously pursue employers who illegally enrich themselves at the expense of their workers.”
“An important mission of the Office of Inspector General is to investigate allegations of fraud related to union members’ wages and benefits,” stated DOL OIG Special Agent-in-Charge Mikulka. “We will continue to work with our law enforcement partners to investigate these types of allegations.”
“Theft of wages has far-reaching effects – stripping hard-working employees of their rightful pay, jeopardizing the financial security of all those who rely on the wage-earner’s income, and creating unfair advantages over companies that do right by their workers,” stated DOI Commissioner Garnett. “In this case, Orba Construction Corporation for five years siphoned workers’ pay through underreporting hours on doctored payroll reports, according to the charges. DOI will continue working with its partners like the U.S. Attorney for the Eastern District of New York to investigate bad actors who steal their employees’ wages.”
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
If convicted, Kumar faces up to 20 years’ imprisonment for each of the mail and wire fraud charges.
The government’s case is being prosecuted by the Office’s Public Integrity Section. Assistant United States Attorney Martin E. Coffey is in charge of the prosecution.
The Defendant
RAKESH KUMAR (also known as “Rikki”)
Age: 64
Basking Ridge, New JerseyE.D.N.Y. Docket No. 19-CR-101 (DLI)
Company and Two Individuals Sued for Allegedly Defrauding the United States Postal ServiceRead the Press Release
RALEIGH – Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that the United States has filed a civil complaint alleging False Claims Act violations committed by BJ Trucking Company, Inc., a former Highway Contract Route supplier for the United States Postal Service. The complaint also alleges False Claims Act violations against two of the company’s principals, Douglas Cline and his son Chad Cline, and hundreds of thousands of dollars in fraudulent transfers allegedly made to hide money from the federal government.
The complaint alleges that BJ Trucking Company and the Clines defrauded the United States by systematically misusing federal funds for unauthorized fuel purchases from 2009 to 2015. In some instances, BJ Trucking Company allegedly used federal money to buy fuel for commercial, rather than Postal, trucking routes, including repeated alleged purchases in states where BJ Trucking Company had no Postal routes at all. In other instances, the company allegedly spent federal funds over 1,300 times on unleaded (rather than diesel) fuel purchases that the United States believes were for unauthorized personal vehicles.
The complaint also alleges that, after the Postal Service notified BJ Trucking Company and the Clines that they owed the United States over $3 million, the company transferred hundreds of thousands of dollars to the Clines, their family members, and related entities in order to conceal the funds from federal authorities. Perhaps worse, in September and October 2015, Chad Cline allegedly negotiated with the Postal Service for the release of over $700,000, money ostensibly necessary for BJ Trucking Company to continue operating without defaulting on its Postal Service contracts. Approximately seven days after the federal government disbursed those funds, however, BJ Trucking Company allegedly defaulted on the contracts, continued transferring thousands of dollars to the Cline family and related entities, and later ceased operations.
The federal False Claims Act allows the United States to recover triple the money falsely obtained, substantial penalties for each false claim submitted, and investigative costs. BJ Trucking Company, Douglas Cline, and Chad Cline can also be held liable for the fraudulent transfers with which they were involved, and the United States can recover from their individual assets.
The claims and allegations in the United States’ civil complaint are merely accusations. The defendants are presumed not liable unless and until the United States proves liability in a court of law.
The case is being investigated by the United States Postal Inspection Service. Assistant United States Attorney Neal I. Fowler represents the government in this matter.
For additional information the complaint filed with the court can be found at this link.Chinese National Who Threatened to Shoot School Children Sentenced to PrisonRead the Press Release
HOUSTON - A 23-year-old Chinese national who resided in La Marque has been ordered to federal prison after admitting to possessing a firearm while being an illegal alien and aggravated identity theft, announced U.S. Attorney Ryan K. Patrick along with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Special Agent in Charge Mark Dawson and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Fred Milanowski.
Xiangyu Zhang pleaded guilty Dec. 14, 2018.
Today, U.S. District Judge Gray Miller handed him a total 61-month sentence - 37 months for the firearms conviction and a mandatory and consecutive 24 months for the identity theft. Not a U.S. citizen, he is expected to face deportation proceedings following the sentence. At the hearing, Judge Miller noted his concern with Zhang’s actions and felt a prison term at the higher end of the guidelines was appropriate.
Zhang remained in the United States two years after his visa expired. He came to law enforcement’s attention in July 2018 when he entered an internet chat session on the Department of Veteran’s Affairs (VA) Crisis Line and threated to kill school children by using firearms. Zhang is a not a U.S. veteran.
Law enforcement arrested him at a gas station located close to his residence. At that time, he was sitting in a vehicle in possession of two firearms, including an AM-15 rifle. Both firearms had rounds in the chamber.
Upon Zhang’s arrest, law enforcement also found a passport belonging to a woman who lived in the Dallas area. Zhang had stolen the woman’s purse containing the passport in August 2017 after he served as her Uber driver. Within hours of stealing her purse, Zhang, while using the woman’s identity without her permission, attempted to purchase several high end items online from Apple.
Law enforcement also found a picture of a fake U.S. passport page with Zhang’s picture and the woman’s passport number on Zhang’s phone.
A few months after stealing the purse, Zhang defrauded Bank of America in March 2018 for more than $11,000. In late June 2018, and a few days before making those threats on the VA chat line, Zhang stole an IRS refund check from his neighbor’s mailbox and deposited it into his bank account.
He has been and will remain in custody pending that hearing.
HSI and ATF conducted the investigation. Assistant U.S. Attorney Alamdar Hamdani is prosecuting the case.
Career Criminal Charged with Illegal Possession of FirearmRead the Press Release
BOSTON – A Brockton man was charged in federal court in Boston yesterday with illegally possessing a firearm.
Dedrick Lindsey, 36, was charged with one count of possession of a firearm by a convicted felon. Lindsey is currently in state custody and will appear in federal court at a later date.
According to court documents, Lindsey was arrested on state charges on July 19, 2018, after law enforcement found a .25 caliber revolver in his possession. Lindsey is prohibited from possessing a firearm due to previous drug convictions, all punishable by more than a year in prison.
The charge of being a felon in possession of a firearm provides for a sentence of no greater than 10 years in prison, a minimum of one year but no greater than three years of supervised release, and a fine of up to $250,000. As an armed career criminal, Lindsey is subject to a mandatory minimum sentence of 15 years in prison and no greater than life, five years of supervised release, and a $250,000 fine. 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; Plymouth County District Attorney Timothy J. Cruz; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney Elysa Wan of Lelling’s Office is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Canadian Man Arrested, Charged with Smuggling Aliens into the United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Wanderson Dos Santos Freitas, a Brazilian citizen living in Toronto, Canada, was arrested and charged by criminal complaint with bringing an alien to the United States for financial gain or commercial advantage. The charge carries a mandatory minimum penalty of three years in prison, a maximum of 10 years, and a $250,000 fine.
Assistant U.S. Attorneys Charles M. Kruly and Jonathan P. Cantil, who are handling the case, stated that according to the complaint, on March 13, 2019, at approximately 9:00 a.m., a U.S. Border Patrol Agent spotted a black jet ski with three occupants, two males and one female, about 50-60 feet from the shoreline at Beaver Island State Park. When the occupants noticed the agent, the operator of the jet ski, the defendant, stepped into the water, and began to push the watercraft further away from the shoreline. Dos Santos Freitas continued to stand up in an apparent attempt to restart it, but the jet ski began to release smoke from the exhaust. After a couple minutes, the defendant began to wave at the agent and related that the jet ski appeared to be stuck in the ice. Air and Marine Operations were alerted and responded to the scene.
A short time later, Dos Santos Freitas got off the jet ski, abandoning his two passengers, and walked across the ice onto the shore. When asked by agents on shore for his citizenship, the defendant stated that he was a “permanent resident of Canada.” Dos Santos Freitas also stated that he did not have any immigration documentation which would allow him to enter the United States legally. The defendant was then placed under arrest.
The other male, Angelo Valentim-Zuccolotto, a citizen of Brazil, also walked across the ice onto the shoreline. The female passenger, Andria Raposo-Marte, a citizen of the Dominican Republic, stayed on the jet ski and appeared to be frozen in fear. Shortly before 10:00 a.m., the Grand Island Fire Department arrived in an inflatable boat and reached Raposo-Marte and safely returned her to the shoreline.Valentim-Zuccolotto and Raposo-Marte were placed under arrest and are subject to administrative proceedings.
Defendant Wanderson Dos Santos Freitas made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and is being detained pending a detention hearing on March 18, 2019.
The criminal complaint is the result of an investigation by U.S. Border Patrol, under the direction of Patrol Agent in Charge Jeffrey Wilson, and U.S. Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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California Man Arrested for Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Jorge Alvarez, 24, of Los Angeles, CA, was arrested and charged by criminal complaint with production of child pornography. The charge carries a minimum penalty of 15 years in prison, a maximum penalty of 30 years, and a $250,000 fine.
Assistant U.S. Attorney Douglas A. Penrose, who is handling the case, stated that according to the complaint, an individual residing in Depew, NY contacted the Depew Police Department in August 2018 concerning the possible sexual exploitation of her minor daughter. Subsequent investigation determined that between June and July 2018, Alvarez engaged in sexually explicit communications with the minor via Instagram and text messages. During the course of these communications, the defendant sent lewd images of himself to the minor, and solicited the minor to produce and send various images of herself to him.
The defendant made an initial appearance before Judge Michael J. Roemer and was released on conditions.
The criminal complaint is the result of an investigation by the Depew Police Department, under the direction of Chief Jerome Miller, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Buffalo Woman Indicted for Threatening A WitnessRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Bridgette McClain, 31, of Buffalo, NY, with retaliating against a witness, and retaliating against a person for providing truthful information to a law enforcement officer. The charges carry a maximum penalty of life in prison.
Assistant U.S. Attorneys Jeremiah E. Lenihan and Brendan T. Cullinane, who are handling the case, stated that according to the indictment, on November 2 and November 5, 2018, an individual testified for the Government in the trial of United States v. Dontrell Wise. A federal jury convicted Wise of the crimes alleged in the indictment and he was sentenced to serve life in prison. In November 2018, law enforcement officers learned that the defendant had posted a threatening post against the individual who testified on Facebook. The post included a photo of the individual with the word “SNITCH” superimposed over the individual’s photograph. Above the photograph, the post included the statement, “This (expletive) Took the stand on my cuz and told lies just for her to get 20 years kill all Rats[.]”
The defendant was arraigned before U.S. Magistrate Judge H. Kenneth Schroeder and was released on conditions.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Boston Man Sentenced for Escaping Re-Entry CenterRead the Press Release
BOSTON - A Boston man was sentenced on Tuesday, March 12, 2019, in federal court in Boston for escaping from a residential re-entry center where he was finishing the remainder of a 100 month sentence.
James Jones, 45, was sentenced by U.S. District Court Chief Judge Patti Saris to 12 months and one day in prison to be served consecutive to his current federal sentence on an unrelated federal drug conviction. In December 2018, Jones pleaded guilty to one count of escape.
In April 2012, Jones was sentenced in federal court in Boston to 100 months in prison for a drug distribution conviction. On March 7, 2018, Jones was transferred from a correctional institution in New Jersey to a residential re-entry center in Boston to serve the remainder of his sentence. On July 10, 2018, Jones signed out of the re-entry center on an approved overnight work pass and was scheduled to return on July 11, 2018, but he failed to return. He was captured 77 days later by the United States Marshals Service.
United States Attorney Andrew E. Lelling and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.
Being Incarcerated in State Prison Does Not Stop New Hartford Man from Distributing Pounds of MethRead the Press Release
A man who was responsible for distributing pounds of ice methamphetamine was sentenced today to more than ten years in federal prison.
Duane Baker, age 28, from New Hartford, Iowa received the prison term after an October 29, 2018 guilty plea to conspiracy to distribute methamphetamine by a convicted drug felon.
Evidence during the case established that while incarcerated in state prison for state felony drug charges, Baker became involved in a conspiracy to distribute ice methamphetamine. From prison, he recruited the mother of his child to distribute methamphetamine on his behalf. Once released from state prison, he continued his involvement in the conspiracy, ultimately distributing more than five founds of ice methamphetamine.
Baker was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Baker was sentenced to 131 months’ imprisonment. He must also serve an eight-year term of supervised release after the prison term. There is no parole in the federal system.
Baker 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 Lisa C. Williams and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of Federal Bureau of Investigation, Iowa Division of Narcotics Enforcement, Tri-County Drug Enforcement Task Force (Waterloo Police Department; Cedar Falls Police Department; Waverly Police Department; Bremer County Sheriff’s Office; Black Hawk County Sheriff’s Office; LaPorte City Police Department; Evansdale Police Department; Hudson Police Department), Mid Iowa Drug Task Force (Marshalltown Police Department; Marshall County Sheriff’s Office; Tama County), and Dubuque Drug Task Force (Dubuque Police Department; Dubuque County Sheriff’s Office).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2024.
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Beaver Falls Woman Charged with Theft of Government Property and Providing False Documents to the U.S.Read the Press Release
PITTBURGH - A resident of Beaver Falls, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of theft of government funds and providing false documentation to the government, United States Attorney Scott W. Brady announced today.
The four-count Indictment returned on March 13, named Janile Fielding, 56, as the sole defendant.
According to the Indictment, from approximately June 2013 until approximately May 2017, Fielding converted for her own use housing assistance payments that were funded by the United States Department of Housing and Urban Development. Such payments were required to be used solely on mortgage payments. Additionally, in order to conceal her theft, Fielding provided multiple false documents to the United States in which she falsely represented how the stolen funds were used.
The law provides for a maximum total sentence of not more than 25 years in prison, a fine of not more than $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The United States Department of Housing and Urban Development Office of Inspector General and the United States Department of Agriculture Office of Inspector General conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Atlantic City, New Jersey, Woman Charged with Drug Distribution Resulting in DeathRead the Press Release
NEWARK, N.J. – An Atlantic City, New Jersey, woman appeared in federal court today on charges including drug distribution that resulted in a death, U.S. Attorney Craig Carpenito announced.
Rajeri Curry, 30, is charged by federal complaint with one count of possession with the intent to distribute heroin and one count of distribution of heroin and fentanyl that resulted in a death. Curry had an initial appearance before U.S. Magistrate Judge James B. Clark III in Newark federal court and was detained without bail.
According to documents filed in this case:
On June 1, 2018, Curry distributed a substance containing heroin and fentanyl to an individual who died as a result of using the substance. Law enforcement found the deceased victim inside a vehicle in the parking lot of an Atlantic City, New Jersey, restaurant. Inside the victim’s vehicle were multiple wax folds that contained heroin and fentanyl and were stamped with the words “BODY COUNT.” Shortly before the victim’s death, surveillance footage captured Curry distributing narcotics to the 30-year-old victim.
Curry is also charged with possession with intent to distribute heroin arising from the execution of a search warrant at her residence.
U.S. Attorney Carpenito credited special agents of the DEA’s Newark Office, under the direction of Special Agent in Charge Susan A. Gibson, officers from the Atlantic City Police Department, under the direction of Chief Henry M. White Jr., and the Atlantic County Prosecutor’s Office, under the direction of Damon G. Tyner, with the investigation leading to the charges.
The drug distribution resulting in death charge carries a maximum punishment of life in prison and a fine of $1 million.
The charges and allegations in the complaint are merely accusations, and Curry is considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorneys Catherine R. Murphy and Heather Suchorsky of the U.S. Attorney’s Office Criminal Division in Newark.
Allentown, Pennsylvania, Woman Faces Additional Charges for Stealing $644,000 in Medicare BenefitsRead the Press Release
TRENTON, N.J. – An Allentown, Pennsylvania, woman was indicted today on additional charges stemming from her scheme to defraud the government, U.S. Attorney Craig Carpenito announced.
Martha Aguilar, 57, formerly of Middletown, New Jersey, was charged by indictment in August 2018 with theft of government funds, Social Security fraud, and making false statements in furtherance of Social Security fraud. Today’s superseding indictment adds three counts of healthcare fraud relating to Aguilar's scheme to also defraud Medicare and steal $644,605 in benefits she was not entitled to receive.
According to the superseding indictment:
From November 2004 to September 2016, Aguilar allegedly collected $136,879 in Social Security benefits and $644,605 in Medicare benefits that she was not entitled to receive. Aguilar indicated on forms to the Social Security Administration (SSA) that she was completely disabled and unable to work. However, while she was collecting Social Security and Medicare benefits, Aguilar concealed her employment as a paralegal.
Aguilar also fraudulently applied for and received temporary disability from the State of New Jersey totaling $13,622, and unemployment benefits from the State of New Jersey totaling $103,738, which she concealed from the SSA. In all, Aguilar failed to report to SSA $488,870 in benefits and income.
If convicted, Aguilar faces a maximum sentence of 30 years in prison and a total fine of $750,000.
U.S. Attorney Carpenito credited special agents of the Office of the Inspector General, Social Security Administration, under the direction of Special Agent in Charge John F. Grasso; Debbi Mayer, Assistant Special Agent in Charge of the U.S. Department of Education, Office of Inspector General, Eastern Region; and N.J. Department of Labor & Workforce Development, Division of Fraud Prevention & Risk Management-Special Investigations Unit, with the investigation leading to todays indictment.
The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Andrea Bergman Esq., Assistant Federal Public Defender, Newark
Wednesday 13 March 2019
West Mifflin Felon Sentenced to Prison for Selling Multiple Drugs from His VehicleRead the Press Release
PITTSBURGH, PA. – An Allegheny County resident has been sentenced in federal court to 24 months imprisonment with six years of supervised release on his conviction of a federal narcotics charge, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Stanley Church, age 47, of West Mifflin, PA.
According to information presented to the court, on March 17, 2017, Allegheny County Police detectives went to execute a search warrant on the person of Church and his vehicle. This search warrant was approved after investigators observed Church trafficking drugs out of this same vehicle. Investigators conducted a traffic stop on Church and then began to search his car. Inside Church’s car investigators found quantities of heroin, fentanyl, cocaine, MDMA, and Psilocyn mushrooms, drug packaging material, scales, and other paraphernalia. Church has previously been convicted of State and Federal narcotics offenses..
This case was brought as 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.
Assistant United States Attorney Nicole Vasquez Schmitt prosecuted this case on behalf of the government.
The Federal Bureau of Investigation – Western District of Pennsylvania Opioid Task Force conducted the investigation leading to the guilty plea in this case. This Task Force is comprised of FBI Special Agents and state and local Task Force Officers, including officers from the Pittsburgh Bureau of Police, Allegheny County Sherriff’s Department, Allegheny County Police, Port Authority Police, Munhall Police Department, McKees Rocks Police Department, West Mifflin Police Department, and Pennsylvania Attorney General’s Office.
Walmart Bandit SentencedRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that TERRY MADISON, age 22, was sentenced yesterday for committing robbery of a Walmart Money Center located in Hammond, Louisiana, on April 14, 2018. Judge Jay C. Zainey sentenced MADISON to a sentence of 151 months in the Bureau of Prisons, three (3) years of Supervised Release following prison, and a $100 mandatory special assessment. The Court also ordered MADISON to repay Walmart $3,448.10 taken in the robbery.
MADISON admitted that he entered the Walmart and passed a demand note to the cashier in the Money Center, and also reached to his waistband, implying that he was armed with a firearm. The teller complied with the demand, and MADISON escaped with over $3,000 in cash.
U.S. Attorney Strasser praised the hard work of the Special Agents of the Federal Bureau of Investigation’s Violent Crime Unit and the Hammond Police Depart in investigating this matter. Assistant United States Attorney Myles Ranier was in charge of the prosecution.
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Utica Man Sentenced to 50 Years in Prison for Transporting and Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Shawn Bunnell, age 35, of Utica, New York, was sentenced yesterday to serve a term of 600 months in prison after being convicted of ten counts of transportation of child pornography and one count of possession of child pornography, announced United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
Chief United States District Judge Glenn T. Suddaby also sentenced Bunnell to a lifetime term of supervised release, to begin following his term of imprisonment. Bunnell will remain a registered sex offender upon his release from prison.
A cybertip from the National Center for Missing and Exploited Children to the New York State Police Internet Crimes Against Children Task Force in Utica led to the defendant, who was identified as the person who had used a cell phone to produce images depicting the molestation of a two year old girl. As part of his guilty plea, Bunnell admitted that from on or about May 30, 2017 through on or about August 15, 2017, he transported numerous image files depicting one or more minors engaged in sexually explicit conduct through servers maintained by Google, Inc. and Dropbox, Inc. Further, the defendant admitted to possessing a number of graphic video files depicting minors engaging in sexually explicit conduct on a Samsung cellular telephone in his possession.
The defendant acknowledged that he has a prior conviction relating to sexual abuse or abusive sexual conduct involving a minor, in that on or about March 27, 2003, he was convicted in Oneida County Court of Sexual Abuse in the First Degree, in violation of New York Penal Law, Section 130.65(3), relating to the sexual abuse of a child under the age of 11, and was sentenced to 5 years imprisonment and 3 years post-release supervision.
This case was investigated by the Oneida County Sheriff’s Office, Oneida County Child Advocacy Center, Whitesboro Police Department, Utica Police Department, New York State Police, and Homeland Security Investigations. It was prosecuted by Assistant U.S. Attorneys Lisa M. Fletcher, Geoffrey J.L. Brown, and Sahar L. Amandolare.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.