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15 April 2019
Two Individuals Sentenced for Mail Fraud and Ordered to Pay $746,000 in RestitutionRead the Press Release
St. Louis, MO – Bobby J. Woods, 50, of Stillwater, MN, and Alan Johnson, 64, of Collinsville, IL, were sentenced to a year and a day in prison and probation, respectively, for conspiracy to commit mail fraud. They appeared in federal court today before U.S. District Court Judge Catherine D. Perry. In addition to the sentences, the Court ordered them to pay restitution in the amount of $746,293.13.
According to court documents, Woods and Johnson engaged in a long-term conspiracy to defraud Johnson’s employer, BMI, an industrial manufacturing company located in East St. Louis, Illinois. Woods, an outside vendor, sold equipment to BMI at prices that were falsely inflated by between 26% and 102%. Woods then paid Johnson, BMI’s plant manager, over $167,000 in kickbacks to ensure that Johnson would secure payment by BMI on the fraudulently inflated invoices.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Gwen Carroll and Lindsay McClure-Hartman handled the case for the U.S. Attorney’s Office.
Two Illegal Aliens Plead Guilty to Unlawfully Reentering United States after RemovalRead the Press Release
Gulfport, Miss. – Abraham Bautista-Rodriguez, 19, and Salvador Bautista-Rodriguez, 19, both citizens of Mexico, pled guilty today before U.S. District Judge Sul Ozerden, to unlawful reentry by an alien after removal, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of U.S. Immigration & Customs Enforcement's Homeland Security Investigations in New Orleans, and Gregory K. Bovino, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
The two men, who are brothers, will be sentenced by Judge Ozerden, on July 8, 2019.
Abraham Bautista-Rodriguez, who has a prior conviction for reentry after removal, faces a maximum penalty of 10 years in prison and a $250,000 fine for unlawful reentry by an alien removed after conviction of a felony. Salvador Bautista-Rodriguez faces a maximum penalty of 2 years in prison and a $250,000 fine for illegal reentry by an alien. Each man also faces being removed from the United States following the completion of his sentence.
On January 28, 2019, an interdiction agent with the South Mississippi Metro Enforcement Team conducted a traffic stop on Interstate 10 in Jackson County. The agent observed eight occupants of the vehicle which included the Bautista-Rodriguez brothers. Border Patrol Agents arrived on the scene shortly thereafter, and interviewed the occupants of the vehicle as to their citizenships, determining that none had proper documents and all were illegally present in the United States. Of the eight vehicle occupants (two drivers and six passengers), all were illegal aliens from Mexico. They were all arrested and transported to the Border Patrol Station in Gulfport.
A Homeland Security Investigations Special Agent joined Border Patrol Agents and determined that the 6 passengers were being smuggled within the United States. Further investigation revealed that both men are citizens of Mexico, and previously had been ordered removed from the United States.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security, Homeland Security Investigations, the United States Border Patrol, the Jackson County Sheriff’s Department, and the City of Gautier Police Department, and the South Mississippi Metro Enforcement Team. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Tri-Cities Repeat Offender Sentenced to More Than 15 Years in Federal Prison for Drug TraffickingRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Antonio Faustino Deleon, age 31, from the Tri-Cities Washington area, was sentenced, after having pleaded guilty to Possessing with Intent to Distribute 50 Grams or More of Pure Methamphetamine. United States District Judge Salvador Mendoza Jr. sentenced Deleon to a 188-month term of imprisonment, to be followed by a 5-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, Deleon was contacted on March 29, 2018 by the Kennewick Police Department’s Criminal Apprehension Team (“CAT”) after they received a report of a suspicious vehicle in a parking lot. CAT Detectives immediately recognized Deleon as an occupant of the vehicle based on multiple previous encounters, to include a recent encounter where Deleon pulled a knife on a law enforcement officer. CAT Detectives knew there was an active warrant for Deleon’s arrest. Upon announcing themselves as police officers, Deleon and two other occupants of the vehicle made multiple furtive movements, and continued to do so contrary to multiple police commands. Eventually, the three occupants were removed from the vehicle without incident. CAT Detectives observed in plain view a large amount of methamphetamine on the floorboard of the vehicle. A search of the vehicle revealed an additional quantity of methamphetamine and heroin, weighing approximately one kilogram, in a backpack that contained Deleon’s identification. Deleon is a known long-term affiliate with the Sureno criminal street gang, and he is known by the moniker “Peanut.” Deleon’s history reveals at least thirty-one prior criminal cases. CAT Detectives referred the case to the FBI Safe Streets Task Force for federal prosecution.
During sentencing, Judge Mendoza noted Deleon’s significant criminal history, committing “crime after crime,” and that the public needed to be protected from Deleon’s future criminal activities.
Joseph H. Harrington said, “The United States Attorney’s Office for the Eastern District of Washington commends the law enforcement officers with the Kennewick Police Department and the FBI who investigated this case. Their seamless partnership resulted in the successful outcome of this matter. The sentence imposed by the court removes a drug trafficker from our streets and sends a clear message to others who may choose to engage in such criminal activity.”
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Kennewick Police Department in partnership with the Federal Bureau of Investigation’s Safe Streets Task Force, which is comprised of officers from the Benton County Sheriff’s Office, Kennewick Police Department, Pasco Police Department, Richland Police Department, and Washington Department of Corrections. This case was prosecuted by Caitlin Baunsgard, Assistant United States Attorney for the Eastern District of Washington.
The Department of Justice Files Amended Sexual Harassment Lawsuit Against Owner and Manager of Rental Properties in Lexington, TennesseeRead the Press Release
Memphis, TN – The Department of Justice today announced that it has filed an amended complaint in its lawsuit against a Lexington, Tennessee, landlord, Chad David Ables, alleging that he violated the Fair Housing Act by subjecting female tenants of his rental properties to sexual harassment and retaliation.
The lawsuit, filed in the U.S. District Court for the Western District of Tennessee, alleges that Ables, who owns and manages rental properties in Henderson County, including a mobile home park called "Pops Cove," sexually harassed a number of female tenants at his properties. For example, according to the government’s complaint, Ables conditioned housing or housing benefits on female tenants’ agreement to engage in sexual acts; subjected at least one female tenant to unwanted sexual touching; made unwelcome sexual comments and advances to female tenants; and took adverse housing-related actions against female residents when they refused his sexual advances.
"No woman should ever be subjected to sexual harassment or intimidation in her home," said Assistant Attorney General Eric Dreiband. "The Fair Housing Act protects tenants from harassment and retaliation by their landlords, and the Justice Department will continue to vigorously enforce this law and seek relief for victims."
"Every person in this district deserves the right to live in a place of their choosing without fear of sexual harassment. This is not a small town issue or a big city issue, but an issue of respect and dignity. We want the women and men throughout all of West Tennessee to know that there’s someone they can turn to if they feel unsafe in their home – no matter where their home is," said D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee.
"Property owners and landlords who use their position to harass residents or to attempt to trade sexual favors for rent violate the sanctity of an individual's home, the place where they should feel the safest," said Anna María Faría, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. "HUD will continue to work with the Justice Department to take action against housing providers that violate the Fair Housing Act by engaging in this type of behavior."
The lawsuit arose from complaints about Ables’s conduct that two women filed with the Department of Housing and Urban Development (HUD). After HUD investigated the complaints, it issued a charge of discrimination and the matter was referred to the Department of Justice. The Department of Justice filed an initial complaint in December, 2018 on behalf of the two complainants. The amended complaint alleges that the defendant harassed several additional female tenants.
The lawsuit seeks monetary damages to compensate the victims, a civil penalty to vindicate the public interest, and a court order barring future discrimination and harassment. The complaint contains allegations of unlawful conduct; the allegations must be proven in federal court.
In October 2017, the Department of Justice launched an initiative to combat sexual harassment in housing. In April 2018, the Department announced the nationwide rollout of the initiative, including three major components: a new joint Task Force with HUD to combat sexual harassment in housing, an outreach toolkit to leverage the Department’s nationwide network of U.S. Attorney’s Offices, and a public awareness campaign, including the release of a national Public Service Announcement.
Since launching the initiative, the Department of Justice has filed nine lawsuits alleging a pattern or practice of sexual harassment in housing. The Department of Justice has filed or settled 14 sexual harassment cases since January 2017, and has recovered over $1.6 million for victims of sexual harassment in housing.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by Chad David Ables, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line, at 1-800-896-7743, and select mailbox 6 to leave a message.
Individuals can also report sexual harassment and other forms of housing discrimination by e-mailing the Justice Department at [email protected].
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The Department of Justice Files Amended Sexual Harassment Lawsuit Against Owner and Manager of Rental Properties in Lexington, TennesseeRead the Press Release
The Department of Justice today announced that it has filed an amended complaint in its lawsuit against a Lexington, Tennessee, landlord, Chad David Ables, alleging that he violated the Fair Housing Act by subjecting female tenants of his rental properties to sexual harassment and retaliation.
The lawsuit, filed in the U.S. District Court for the Western District of Tennessee, alleges that Ables, who owns and manages rental properties in Henderson County, including a mobile home park called “Pops Cove,” sexually harassed a number of female tenants at his properties. For example, according to the government’s complaint, Ables conditioned housing or housing benefits on female tenants’ agreement to engage in sexual acts; subjected at least one female tenant to unwanted sexual touching; made unwelcome sexual comments and advances to female tenants; and took adverse housing-related actions against female residents when they refused his sexual advances.
“No woman should ever be subjected to sexual harassment or intimidation in her home,” said Assistant Attorney General Eric Dreiband. “The Fair Housing Act protects tenants from harassment and retaliation by their landlords, and the Justice Department will continue to vigorously enforce this law and seek relief for victims.”
“Every person in this district deserves the right to live in a place of their choosing without fear of sexual harassment. This is not a small town issue or a big city issue, but an issue of respect and dignity. We want the women and men through all of west Tennessee to know that there’s someone they can turn to if they feel unsafe in their home – no matter where their home is," said U.S. Attorney D. Michael Dunavant for the Western District of Tennessee.
“Property owners and landlords who use their position to harass residents or to attempt to trade sexual favors for rent violate the sanctity of an individual's home, the place where they should feel the safest," said Anna María Faría, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “HUD will continue to work with the Justice Department to take action against housing providers that violate the Fair Housing Act by engaging in this type of behavior.”
The lawsuit arose from complaints about Ables’s conduct that two women filed with the Department of Housing and Urban Development (HUD). After HUD investigated the complaints, it issued a charge of discrimination and the matter was referred to the Department of Justice. The Department of Justice filed an initial complaint in December, 2018 on behalf of the two complainants. The amended complaint alleges that the defendant harassed several additional female tenants.
The lawsuit seeks monetary damages to compensate the victims, a civil penalty to vindicate the public interest, and a court order barring future discrimination and harassment. The complaint contains allegations of unlawful conduct; the allegations must be proven in federal court.
In October 2017, the Department of Justice launched an initiative to combat sexual harassment in housing. In April 2018, the Department announced the nationwide rollout of the initiative, including three major components: a new joint Task Force with HUD to combat sexual harassment in housing, an outreach toolkit to leverage the Department’s nationwide network of U.S. Attorney’s Offices, and a public awareness campaign, including the release of a national Public Service Announcement.
Since launching the initiative, the Department of Justice has filed nine lawsuits alleging a pattern or practice of sexual harassment in housing. The Department of Justice has filed or settled 14 sexual harassment cases since January 2017, and has recovered over $1.6 million for victims of sexual harassment in housing.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by Chad David Ables, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line, at 1-800-896-7743, and select mailbox 6 to leave a message.
Individuals can also report sexual harassment and other forms of housing discrimination by e-mailing the Justice Department at [email protected].
Taylor County man admits to methamphetamine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – William Edward Boyce, II, of Flemington, West Virginia, has admitted to distributing methamphetamine, United States Attorney Bill Powell announced.
Boyce, age 27, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine.” Boyce admitted to distributing more than 50 grams of methamphetamine in September 2018 in Harrison County.Boyce faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Clarksburg Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
St. Croix Man Found Guilty of Possession Cocaine Base (“Crack”) and Assaulting Virgin Islands Police OfficerRead the Press Release
St. Croix, USVI – Jimmy Davis, 41, of St. Croix, has been found guilty after a jury trial in the St. Croix District Court of one count of Possession of Cocaine and one count of Aggravated Assault and Battery, United States Attorney Gretchen C.F. Shappert announced. The jury trial lasted a total of five days, commencing on April 8, 2019, and concluding on April 12, 2019. An additional charge was dismissed.
According to trial testimony, on February 26, 2018, Virgin Islands Police Department officers arrested Jimmy Davis, on an outstanding Superior Court warrant. At the time of his arrest, officers located of 9.61 grams of crack cocaine in the Davis’s front right pants pocket. The DEA Southeast Laboratory in Miami, Florida subsequently analyzed the crack cocaine and confirmed it to be cocaine base, a Schedule II controlled substance.
While Davis was being processed and booked at the police department following his February of 2018 arrest on the drug charges, he became belligerent and violent. According to trial testimony, Davis verbally threatened and then intentionally kicked Officer Travis Herbert in the right thigh area.
The possession offense carries a term of imprisonment of up to 1 year and a fine of up to $1,000. The aggravated assault and battery offense also carries a term of imprisonment of up to 1 year and a fine of up to $500. Sentencing is scheduled for August 14, 2019.
The Virgin Islands Police Department and the Drug Enforcement Administration (DEA) investigated the case. Assistant U.S. Attorneys Daniel H. Huston and Alphonso G. Andrews prosecuted the case.
Springfield Man Sentenced to 30 Years for Sexual Exploitation of a ChildRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was sentenced in federal court today for recording his sexual abuse of a child victim.
George Ralph Pollock, 77, was sentenced by U.S. District Judge Brian C. Wimes to 30 years in federal prison without parole.
On April 3, 2018, Pollock pleaded guilty to the sexual exploitation of a child. Pollock admitted that he sexually abused a child victim from the age of 12 until she was 17 years old, and had been exchanging nude images via email and text since she was 15 years old. The child victim told investigators that Pollock had sexually abused her more than 100 times.
The investigation began on Aug. 16, 2016, when officers received a CyberTip from the National Center for Missing and Exploited Children that Pollock had attempted to upload and email an image of child pornography. Officers executed a search warrant at Pollock’s residence and seized two cell phones and computers. Images of child pornography were found on those devices, as well as a VHS tape that depicted Pollock and the child victim engaged in sexual activity.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Homeland Security Investigations, the Southwest Missouri Cyber Crimes Task Force and the Greene County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."South Bay Drug Trafficker Sentenced to 45 Months in PrisonRead the Press Release
SAN JOSE – Sophann Pin was sentenced today to 45 months in prison for possessing with the intent to distribute methamphetamine announced United States Attorney David L. Anderson and Drug Enforcement Administration (DEA) Special Agent in Charge Chris Nielsen. The sentence was handed down by the Honorable Edward J. Davila, U.S. District Judge.
Pin, 36, of San Jose, pleaded guilty to the charges on May 10, 2018. According to his plea agreement, Pin admitted he possessed methamphetamine with the intent to sell it to other people. The plea agreement describes three transactions in which Pin distributed drugs. Pin admitted that on September 30, 2016, he agreed to meet two drug buyers in a parking lot on East Hamilton Avenue in Campbell, Calif. After arriving at the parking lot with approximately 543 grams of a substance containing methamphetamine, Pin exchanged the drugs for $3,500. Further, on November 15, 2017, Pin possessed one kilogram of methamphetamine he obtained from co-defendant Oscar Andrade, 32, from San Jose. Pin also acknowledged that on January 19, 2017, he obtained two kilograms of methamphetamine from co-defendant Christian Urena, 32, from San Jose, and that he intended to sell the methamphetamine to another person.
On February 2, 2017, a federal grand jury indicted Pin, charging him with two counts of conspiracy to possess with intent to distribute and to distribute methamphetamine, in violation of 21 U.S.C. § § 846, 841(a)(1), and 841(b)(1)(C), and three counts of possession with intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C). Pin pleaded guilty to one count of possession with intent to distribute methamphetamine. The remaining counts were dismissed.
In addition to the prison term, Judge Davila also sentenced Pin to serve 3 years of supervised release that will begin at after his prison term has been served.
Andrade and Urena also pleaded guilty to their respective roles in the scheme. On January 14, 2019, Judge Davila sentenced Andrade to 160 months in prison and five years of supervised release for his role. On March 4, 2019, Judge Davila sentenced Urena to 50 months in prison and three years of supervised release for his role.
Assistant U.S. Attorney Scott Simeon is prosecuting the case with the assistance of Tong Zhang. The prosecution is the result of an investigation by the DEA.
Source of Supply for Bakersfield Synthetic Marijuana Traffickers Sentenced to over 5 Years in PrisonRead the Press Release
FRESNO, Calif. — Haitham Eid Habash, aka Eddie Habash, 55, of Hawthorne, was sentenced today to five years and three months in prison for his role in supplying synthetic drugs to wholesale internet drug traffickers, U.S. Attorney McGregor W. Scott announced. Habash was also ordered to forfeit over $193,000 in proceeds derived from drug trafficking.
According to court documents, in 2015, Habash manufactured smokeable synthetic cannabinoids, commonly known as “spice,” which contained AB-Chminaca, AB-Pinaca, and XLR11, all of which are Schedule I controlled substances. Habash personally negotiated with and obtained the raw chemicals directly from Chinese suppliers. He would then dilute them with a solvent before mixing them with flavoring to add to dried plant material. Habash sold his drugs under various brand names, including Bizarro and his own special blend, Mr. High. His customers included his co-defendant Majed Bashir Akroush, aka Magic Mike, 51, of Bakersfield, who sold Habash’s product over the internet under the business names of Magic Mans Wholesale, Blue Whale Wholesale, and World of Incense.
According to the plea agreement, on April 14, 2015, CHP officers intercepted 95 pounds of synthetic cannabinoid products manufactured by Habash in Bakersfield.
The case against Akroush is still pending. He is charged with the drug conspiracy and two substantive drug offenses, all of which carry a maximum statutory penalty of 20 years in prison and a $1 million fine. Akroush is also charged with conspiring to structure several million dollars obtained from his drug trafficking activity. The structuring charge carries a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the U.S. Drug Enforcement Administration, IRS Criminal Investigation, Federal Bureau of Investigation, Homeland Security Investigations, U.S. Postal Inspection Service, California Highway Patrol, California Department of Motor Vehicles, Kern County Probation, Kern County Sheriff’s Office, and Bakersfield Police Department. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of OCDETF 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.
Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Sentence: Prison for Wichita Man Convicted of Sex TraffickingRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced to 25 years in federal prison today for sex trafficking, U.S. Attorney Stephen McAllister said.
Johnell Carter, 23, Wichita, Kan., pleaded guilty to two counts of sex trafficking. In his plea, he admitted he used physical force including punching and biting to make an 18-year-old woman have sex for money at Wichita hotels. He advertised her services online.
In the second count, Carter admitted recruiting a 15-year-old to perform commercial sex acts at Wichita hotels. He advertised her services online.
McAllister commended the FBI, the Wichita Police Department, the Exploited and Missing Child Unit (EMCU) and Assistant U.S. Attorney Jason Hart for their work on the case.
Sanford Man Sentenced to 54 Months for Illegally Possessing a Firearm and AmmunitionRead the Press Release
RALEIGH – Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that United States District Judge James C. Dever, III sentenced MARQUIS ANTIONE BARNES, 20, of Sanford to 54 months’ imprisonment, followed by 3 years of supervised released.
On November 7, 2018, BARNES was named in a one-count Indictment charging him with Possession of a Firearm by a Convicted Felon. On January 7, 2019, BARNERS pled guilty to the charge.
On September 5, 2018, during an investigation into a case involving stolen firearms and drug distribution, the Harnett County Sheriff’s Office (HCSO) obtained permission to search a telephone of an individual. During the search, a video with the name of “Marquis 919” was located. In this video, the male, identified as BARNES, was seen with a Glock semi-automatic handgun, which contained an extended magazine. Another video located showed BARNES sleeping with a Glock with an extended magazine located near him. The weapon appeared to be the same weapon in both videos.
On September 8, 2018, a deputy with the HSCO conducted a traffic stop on a vehicle. When the deputy approached the vehicle, an odor of marijuana was detected. BARNES was in the front passenger seat and an unidentified passenger was in the back seat. All three individuals were removed from the vehicle and, after searching the vehicle, the deputy seized a small bag of marijuana. At that time, the deputy conducted a search of the occupants to determine if they had any outstanding warrants. BARNES had a warrant for his arrest for Possession of a Firearm in Harnett County and he was arrested. Further search of the vehicle resulted in the seizure of a Glock 9mm handgun containing an extended magazine with 23 rounds of ammunition located between the passenger seat and center console. BARNES stated the gun was his.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is also part of the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violence crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Harnett County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Assistant United States Attorney Daniel W. Smith prosecuted the case for the government.
Operator of Tax Preparation Business Indicted on Tax Fraud and Tax EvasionRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was arrested today by federal agents on charges of tax fraud and tax evasion, U.S. Attorney Craig Carpenito announced.
Terrance LeGall, 64, of Linden, New Jersey, is charged by indictment with 11 counts of aiding and abetting the preparation of a false tax return and eight counts of tax evasion for failure to file personal and corporate income tax returns. LeGall is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to documents filed in this case and statements made in court:
Since 2009, LeGall was the sole operator of LeGall Group Inc. (LGI), a tax return preparation business in Union County, New Jersey. From 2013 to 2017, LeGall prepared false tax returns for his clients. He allegedly included fake charitable contributions, unreimbursed business expenses and business losses that he knew his clients had not actually incurred. These returns resulted in a reduction in his clients’ tax liability and fraudulent refunds from the IRS. LeGall acted as a “ghost preparer,” in that although he prepared income tax returns for his clients, he did not identify himself anywhere on the returns as a preparer, and electronically filed the returns in a manner that made it look like the returns had been filed by the taxpayers. LeGall also evaded the assessment of federal taxes in excess of $600,000 by willfully failing to file personal and corporate tax returns for the tax years 2012 through 2015. LeGall attempted to hide his source of income by depositing the proceeds of his tax preparation business into bank accounts belonging to his family members.
Each count of aiding and abetting in the preparation of false tax returns carries a maximum prison sentence of three years and a $250,000 fine. Each count of failure to file personal and corporate income tax returns carries a maximum prison sentence of five years and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Sammi Malek of the Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: John Yauch Esq. Assistant Federal Public Defender, Newark
Olympia, Washington Man with Prior Conviction for Possessing Images of Child Rape and Abuse Sentenced to 48 Months in PrisonRead the Press Release
A 60-year-old Olympia, Washington resident was sentenced today in U.S. District Court in Tacoma to 48 months in prison and a lifetime of supervised release for possessing images of child sexual abuse, announced U.S. Attorney Brian T. Moran. DONALD A. DELATEUR was arrested in May 2018, as part of Operation Broken Heart – an investigation into peer-to–peer file sharing of images of child rape and abuse. A court-authorized search of DELATEUR’s electronic devices revealed they contained images of children being raped and sexually abused. At the sentencing hearing U.S. District Judge Benjamin H. Settle said “It is difficult to overstate the seriousness” of child pornography offenses. The victims of these offenses suffer their own “life sentence.”
“Victims of child sexual abuse, whose worst moments are video recorded and shared over the internet, are re-victimized each and every time an offender views those images or videos,” said U.S. Attorney Brian T. Moran.
In 2005, DELATEUR was convicted in Thurston County Superior Court of possessing child pornography. In 2015, DELATEUR was again contacted by federal investigators after his internet protocol (IP) address came up in an investigation of peer-to-peer file sharing of child pornography. However, in that instance, DELATEUR had been able to scrub his devices of images of child rape and molestation. At the time, DELATEUR was warned that if he continued his file sharing activities, he could face federal prison time. In 2018, his IP address was again linked to the trading of child pornography. This time the forensic examination of his devices uncovered the images of child sexual abuse.
DELATEUR pleaded guilty in January 2019.
Operation Broken Heart resulted in the arrest of more than 2,300 suspected online child sex offenders during a three-month, nationwide operation conducted by 61 Internet Crimes Against Children (ICAC) task forces. During March, April and May of 2018, the ICAC task forces investigated more the 25,200 complaints of technology-facilitated crimes against children.
This investigation was led by Homeland Security Investigations as part of the Seattle-area ICAC. The case was prosecuted by Assistant United States Attorney Matthew Hampton.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
Ohio Man Sentenced to Prison for eBay ScamRead the Press Release
PITTSBURGH, Pa. – An Ohio resident has been sentenced in federal court to three years and six months in prison, followed by three years’ supervised release, and was ordered to pay $379,591.95 in restitution on his conviction of mail fraud, United States Attorney Scott W. Brady announced today.
United States District Judge Bill Wilson imposed the sentence last Friday on Atticus Sliter-Matias, 30, of South Euclid, Ohio.
According to information presented during trial and at sentencing, around 2014 to on or about July 5, 2016, Sliter-Matias advertised electronic devices for sale on 498 eBay accounts. However, Sliter-Matias mailed empty packages through the United States Postal Service to the purchasers instead of the purchased merchandise. Sliter-Matias often used the proceeds from these fraudulent sales to purchase gold or silver bars and coins, which were delivered to his UPS mailbox. As a result of this scheme, the victims suffered a loss of $379,591.95.
Assistant United States Attorneys Colin J. Callahan and Shardul S. Desai prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Postal Inspection Service for the investigation leading to the successful prosecution of Sliter-Matias.
Number of Federal Defendants Charged and Imprisoned Rises in 2018Read the Press Release
BIRMINGHAM – The number of people charged with federal crimes in the Northern District of Alabama in 2018 and the percentage of those defendants sentenced to prison was the highest since 2007, announced U.S. Attorney Jay E. Town.
“I believe that our numbers are a reflection of effort and my office turned in a tremendous effort in FY18,” Town said. “Each Division is coordinating with the others in a true phalanx and, as a result, the office was more productive than at any time in recent memory. Because of this team effort, the citizens of NDAL are safer, our communities are better, and our partnerships with local law enforcement are stronger than ever before.”
The priorities of the Department of Justice to reduce illegal gun crimes, reduce violent crime, pursue criminal immigration matters, to aggressively address the opioid epidemic in Alabama, and protect the public fisc were all successfully executed by the Northern District in 2018. The U.S. Attorney’s Office showed vast improvement in all categories in 2018 over the previous fiscal year, which was itself one of the most productive years in over a decade.
The data provided by the Department of Justice indicates that the Northern District’s conviction rate of 99 percent is the highest since at least 2004. Defendants charged totaled 575 for Fiscal Year 2018, up 6.5% from the 540 defendants charged in FY 2017. The number of defendants sentenced to prison in 2018 rose 19%, from 325 in 2017 to 387 in 2018.
The 259 defendants charged with violent crimes in 2018 was an 80% increase over the 144 charged with violent crimes in 2015. The 169 defendants charged with drug-related crimes in 2018 was the largest number since 2008.
Illegal firearms prosecutions rose 27% in FY 2018 to 286, from 225 in FY 2017. FY 2018 marked the largest number of illegal firearms prosecutions ever recorded in the Northern District of Alabama.
In FY 2018, the prosecution of criminal immigration cases saw a 116% increase in the number of defendants found guilty, which is the largest increase in the history of the Northern District of Alabama.
Our Civil Division achieved favorable judgments in nearly every category of litigation.
Our Appellate Division was successful in all civil and criminal appeals.
In addition to the prosecutorial numbers, the Department of Justice, through grant funding, invested over $8.5 million last year in the Northern District of Alabama.
New York City Prison Bribery and Narcotics Smuggling Prosecution Completed with Sentencing of Last DefendantRead the Press Release
Earlier today, in federal court in Brooklyn, the seventh and final defendant was sentenced in connection with a bribery conspiracy to smuggle narcotics and other contraband into New York City prisons. Carl Noel, a former correction officer employed by the New York City Department of Correction, was sentenced today by United States District Judge Pamela K. Chen to six months’ home confinement for accepting bribes in exchange for smuggling narcotics into the Manhattan Detention Complex (MDC). Previously, Noel’s six co-defendants received sentences ranging from six months in a residential facility to 26 months’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Margaret Garnett, Commissioner, New York City Department of Investigation (DOI), announced the sentences.
“Our prison system relies upon the integrity of its employees. For selling his integrity, undermining the security of the prison and endangering his fellow officers, Carl Noel will now go from guard to convicted felon,” stated United States Attorney Donoghue. “All seven members of this smuggling conspiracy, including two correction officers, have now been held accountable for their crimes.” Mr. Donoghue expressed his grateful appreciation to the Drug Enforcement Administration’s New York Drug Enforcement Task Force (DEA), consisting of agents and officers of the DEA, New York City Police Department and New York State Police for their assistance.
“Correction officers have a duty to enforce and abide by the rules of our city jails to protect the safety of their fellow officers and the incarcerated,” stated DOI Commissioner Garnett. “The two correction officers involved in this contraband smuggling scheme violated that pledge, sold out their integrity by accepting bribes, and have now been held to account for their crimes. DOI thanks the U.S. Attorney for the Eastern District for his partnership in stemming the flow of contraband in our City jails and for his office’s prosecution of this important matter.”
The defendants assumed a variety of roles in the conspiracy. Noel and correction officer Christian Mizell, were responsible for smuggling the marijuana and other contraband into the MDC. Their co-defendants, Warren Green and Patrick Johnson, both of whom were incarcerated at the MDC, arranged for marijuana and other contraband to be packaged and delivered covertly to Noel and Mizell, by co-defendants Robert Martino, Malik Holloway and Asha Patterson. Noel and Mizell received thousands of dollars in bribes, among other benefits, to smuggle narcotics past prison security personnel for distribution inside the prison.
Previously, Noel’s co-defendants were sentenced for their roles in the conspiracy. In November 2018, Mizell, was sentenced to 19 months’ imprisonment; in December 2018, Martino was sentenced to six months in a residential facility and two years’ probation; in December 2018, Johnson was sentenced to 21 months’ imprisonment; in December 2018, Patterson was sentenced to one year and one day in prison; in January 2019, Holloway was sentenced to 14 months’ imprisonment; and in February 2019, Green was sentenced to 26 months’ imprisonment.
The government’s case is being handled by Assistant United States Attorney Erik Paulsen of the Office’s Public Integrity Section and Nomi Berenson of the Office’s International Narcotics and Money Laundering Section.
The Defendants:
CARL NOEL
Age: 32
New York, New YorkChristian Mizell
Age: 49
Queens, New YorkWARREN GREEN
Age: 41
Pine City, New YorkPATRICK JOHNSON
Age: 27
Bronx, New YorkROBERT MARTINO
Age: 37
Queens, New YorkMALIK HOLLOWAY
Age: 23
Bronx, New YorkASHA PATTERSON
Age: 44
Queens, New YorkE.D.N.Y. Docket No. 18-CR-60 (PKC)
New Berlin Man Faces Federal Child Pornography ChargesRead the Press Release
URBANA, Ill. – An initial trial date in June has been scheduled for a New Berlin, Ill., man, Scott A. Gentry, 57, who appeared in federal court on April 12 for arraignment on federal child pornography charges. Gentry was previously arrested on Jan. 24, 2019, on charges filed in Macon County. The federal indictment, returned by the grand jury on April 2, had remained sealed pending Gentry’s arrest and transfer of the case to federal court.
Gentry appeared before U.S. Magistrate Judge Eric I. Long who ordered that Gentry remain detained in the custody of the U.S. Marshals Service. Trial for Gentry was scheduled on June 18, 2019, before Chief U.S. District Judge Sara Darrow in Urbana.
The indictment alleges that in November and December 2016, and April 2017, Gentry used a computer or device to receive images of children engaged in sexually explicit conduct, and in January 2019, that Gentry possessed images of child pornography in both Sangamon and Macon counties.
If convicted, the statutory penalty for each count of receipt of child pornography (three counts) is five to 20 years in prison, and a fine of up to $250,000; possession of child pornography (two counts) carries a penalty of up to 20 years in prison, and a fine of up to $250,000.
Assistant U.S. Attorney Elly M. Peirson is representing the government in the prosecution in coordination with the Macon and Sangamon County State’s Attorney’s Offices. The charges are the result of an investigation by the Macon County Sheriff’s office, the Sangamon County Sheriff’s office and the Internet Crimes Against Children Task Force of the Illinois Attorney General’s Office.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Multiple Time Offender Guilty of Illegally Re-entering United StatesRead the Press Release
BEAUMONT, Texas –A 49-year-old Mexican national has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Luis Garcia-Torres pleaded guilty today to unlawful reentry by a deported alien before U.S. Magistrate Judge Keith F. Giblin.
According to information presented in court, on Jan. 13, 2019, Garcia-Torres was arrested in Orange County, Texas for driving while intoxicated. After being booked into the Orange County Jail, it was discovered that Garcia-Torres illegal alien with prior felony convictions. A records check revealed Garcia-Torres had been convicted of voluntary manslaughter in 1988 in North Carolina. Garcia-Torres had also been previously deported from the United States to Mexico in 1990, 2011, and 2016. Garcia-Torres was indicted by a federal grand jury in the Eastern District of Texas on Feb. 16, 2019, and charged with immigration violations.
Under the federal statute, Garcia-Torres faces up to 10 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office
This case is being investigated by the U.S. Immigrations and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) and the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
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Monongalia County man admits to methamphetamine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Khareem Sampson, of Morgantown, West Virginia, has admitted to distributing methamphetamine, United States Attorney Bill Powell announced.
Sampson, age 30, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine.” Sampson admitted to distributing methamphetamine in July 2018 in Monongalia County.Sampson faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted in the arrests.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Maryland man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA –Kevin E. Burley, Jr., of Parkville, Maryland, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Burley, also known as “Breeze,” age 34, pled guilty to one count of “Unlawful Possession of a Firearm.” Burley, having been previously convicted of three felonies, admitted to having a 9mm pistol and four.380 caliber pistols in September 2016 in Preston County.
Burley faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Preston County Sheriff’s Office investigated.
U.S. Magistrate Michael John Aloi presided.
Maryland Man Sentenced to Nine Years in Federal Prison for Distribution of Child PornographyRead the Press Release
A Laurel, Maryland, man was sentenced to nine years in prison today, to be followed by 25 years of supervised release for distribution of child pornography, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Robert K. Hur of the District of Maryland.
Charles Bertsch, 60, a former security guard at a local university, pleaded guilty to one count of distribution of child pornography before U.S. District Court Judge Paul W. Grimm on July 23, 2018.
According to admissions made as part of his guilty plea, FBI Task force agents in Maryland began an investigation into Bertsch after various law enforcement agencies downloaded child pornography via a peer-to-peer network from IP addresses, which led back to the defendant. In an interview with law enforcement, Bertsch acknowledged that by connecting his computer and downloading such images, he was simultaneously enabling others to download child pornography from his hard drive. A forensic examination of Bertsch’s electronic devices, seized pursuant to a search warrant, revealed over 99,000 image files and over 2,000 video files of child pornography.
The investigation was conducted by the FBI’s Baltimore Field Office with assistance from the Baltimore County Police Department, Washington County Sheriff's Office and Worcester County Sheriff's Office. This case is being prosecuted by Trial Attorney Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Joseph Baldwin of the District of Maryland.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc<http://www.justice.gov/psc.
Manchester Man Sentenced to 76 Months in Federal Prison for Cocaine TraffickingRead the Press Release
CONCORD - United States Attorney Scott W. Murray announced today that Chris Minarcin, 34, formerly of Manchester, New Hampshire, was sentenced to serve 76 months in federal prison for distributing cocaine and possessing over 500 grams of cocaine with the intent to distribute the drugs.
Court documents and statements made in court showed that on three occasions in March, 2016 and January and February of 2017, Minarcin sold quantities of cocaine to an individual who was cooperating with law enforcement. The transactions took place in Manchester and Hooksett. Additionally, on two separate occasions in February of 2017, Minarcin was found in possession of over 500 grams of cocaine during traffic stops in Manchester.
Minarcin pleaded guilty to the charges on October 22, 2018. Under the terms of the plea agreement, Minarcin will forfeit $6,510 in drug proceeds to the United States.
“Drug trafficking presents a substantial risk to the health and safety of our citizens,” said U.S. Attorney Murray. “This investigation is an example of how federal, state, and local law enforcement officers are working together to identify, prosecute, and incarcerate those who are responsible for distributing illegal drugs in the Granite State.”
“DEA is committed to bring to justice those that distribute cocaine,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Mr. Minarcin accountable for his crimes but serves as a warning that DEA and its local, state and federal law enforcement partners will do everything in our power to keep this drug out of the Granite State.”
“Mr. Minarcin is no different than any other drug trafficker who exploits vulnerable people suffering from addiction. This case is a direct result of the hard work and collaboration between federal, state and local law enforcement partners in our efforts to combat those flooding our streets with drugs. The FBI New Hampshire Safe Streets Task Force will continue to do everything it can to make sure those bringing drugs and violence to our streets are held accountable,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
This matter was investigated by the DEA, the FBI Safe Streets Task Force, Immigration and Customs Enforcement’s Homeland Security Investigations, the New Hampshire State Police, the Manchester Police Department, the Massachusetts State Police, and the Lowell Police Department. The case was prosecuted by Assistant United States Attorney Jennifer Cole Davis.
This investigation was conducted by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Man Pleads Guilty to Transporting Marijuana for Large Scale Illegal Drug OperationRead the Press Release
A California man pleaded guilty Friday in U.S. District Court to interstate travel in aid of a racketeering enterprise for his role in transporting marijuana for Tong Moua Vang, announced U.S. Attorney Trent Shores.
At his hearing, David Mason Leslie, Jr., 54, of Cucamonga, California, admitted that in July 2018, he aided in the transport of marijuana for Tong Vang, of Tulsa. Leslie stated that he rented a car and trailer to transport marijuana from California to Tulsa for distribution to areas outside of Oklahoma. Leslie was arrested near Omaha, Nebraska, July 30, 2018, after law enforcement discovered 200 pounds of marijuana in the trailer.
“Crime doesn’t pay. Leslie made a costly decision simply for what he thought was easy money. He got caught up in the wrong game and now may pay the price by being sentenced to federal prison for taking part in this marijuana operation,” said U.S. Attorney Shores.
The transport of the drug was part of a marijuana distribution operation led by Kong Meng Vang, who pleaded guilty in August 2018 to drug conspiracy, money laundering and possession with intent to distribute 100 kilograms or more of marijuana. Tong Vang was later named to the drug conspiracy in a superseding indictment. Tong Vang purchased marijuana in California then recruited and paid others to transport it outside of state. Leslie originally hauled cars for Kong Meng Vang, and was later recruited by Tong Vang to transport the marijuana.
U.S. District Chief Judge John E. Dowdell accepted his plea and set sentencing for July 11, 2019. Leslie remains in custody while awaiting sentencing. At that time, he faces a potential maximum sentence of five years imprisonment and a $250,000 fine.
The Drug Enforcement Administration and IRS-Criminal Investigation are the investigative agencies. Assistant U.S. Attorney’s Joseph F. Wilson and Richard M. Cella are prosecuting the case
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that on April 12, 2019, Jose L. Gonzalez, 28, of Lincoln, was sentenced to 14 years, (168 months), in federal prison by Chief United States District Judge John M. Gerrard for conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine mixture. Following the prison term, Gonzalez will serve five years on supervised release.
Information provided to law enforcement indicated that between June of 2015 and January of 2017, Gonzalez was involved in the distribution of at least 1.5 kilograms (approximately three pounds) of methamphetamine mixture in the Lincoln area. In October of 2015, Gonzalez was contacted by the Lincoln Police Department on a traffic stop. At that time, he admitted using and selling large amounts of methamphetamine.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Leader of Multi-State Methamphetamine Trafficking Organization Pleads GuiltyRead the Press Release
Gulfport, Miss. – Jose Antonio Castillo, 44, of Atlanta, Georgia, pled guilty today before Senior U.S. District U.S. District Judge Louis Guirola, Jr. to conspiracy to possess with intent to distribute 500 grams or more of methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Immigration and Customs Enforcement’s Homeland Security Investigation (“HSI”) in New Orleans.
In late 2017, agents with HSI in Gulfport began investigating Castillo’s drug trafficking organization. Based on numerous sources of information, agents determined that Castillo was supplying at least three individuals on the Mississippi Gulf Coast with methamphetamine. Those three individuals would travel to Atlanta, Georgia, and meet Castillo at an automotive shop where he worked. Castillo would provide pound quantities of methamphetamine to these individuals in exchange for money. The individuals purchasing the methamphetamine from Castillo would then bring that meth back to the Mississippi Gulf Coast and sell it.
In July 2018, local HSI agents traveled to Atlanta, and arrested Castillo. At the time of his arrest, Castillo had over 800 grams of methamphetamine in his car. Agents also executed search warrants at Castillo’s home and the automotive shop.
To date, the United States Attorney’s Office for the Southern District of Mississippi prosecuted seven individuals involved in Castillo’s Drug Trafficking Organization. All seven of those individuals have pled guilty.
Castillo will be sentenced on July 16, 2019 by Judge Guirola, and faces a maximum penalty of life in prison and a $10,000,000 fine.
The case was investigated by Homeland Security Investigations in Gulfport and prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Laurel Man Sentenced to Nine Years in Federal Prison for Distribution of Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm today sentenced Charles Bertsch, age 60, of Laurel, Maryland, to nine years in federal prison, followed by 25 years of supervised release, for distribution of child pornography. Judge Grimm also ordered that, upon his release from prison, Bertsch must register as a sex offender under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; Chief Terrence B. Sheridan of the Baltimore County Police Department; Washington County Sheriff Douglas W. Mullendore; and Worcester County Sheriff Matthew Crisafulli.
According to Bertsch’s plea agreement, FBI Task Force agents in Maryland began an investigation into Bertsch after various law enforcement agencies downloaded child pornography via a file-sharing network from IP addresses that led back to Bertsch. In a subsequent interview with law enforcement, Bertsch acknowledged that by connecting his computer and downloading such images, he was simultaneously enabling others to download child pornography from his hard drive. A forensic examination of Bertsch’s electronic devices, seized pursuant to a search warrant, revealed more than 99,000 image files and more than 2,000 video files of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI, the Baltimore County Police Department, the Washington County Sheriff's Office, and the Worcester County Sheriff’s Office for their work in the investigation. Mr. Hur and Mr. Benczkowski thanked Assistant U.S. Attorney Joseph Baldwin and Trial Attorney Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), who prosecuted the federal case.
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Lake Worth Resident Sentenced to 12 Years in Prison for Distributing Cocaine and Heroin Containing FentanylRead the Press Release
A Palm Beach County resident was sentenced to 12 years in prison for distributing cocaine and heroin containing Fentanyl.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Rick Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, Dave Aaronberg, State Attorney, Palm Beach County State Attorney’s Office, made the announcement.
Duwayne Jones, 44, of Lake Worth, Florida, previously pled guilty to distributing a controlled substance (Case No. 19-CR-80004). On April 12, 2019, Jones was sentenced by U.S. District Judge Kenneth A. Marra to 144 months in prison, to be followed by 3 years of supervised release.
According to the court record, on October 2, 2018, Jones sold cocaine and heroin laced with Fentanyl to an undercover police officer. On December 12, 2018, Jones again sold heroin to an undercover officer and was subsequently arrested. During a search incident to his arrest additional heroin, cocaine, marijuana, and $415 in U.S. currency was recovered.
Based upon prior police reports and telephone records, Jones was connected to two prior non-fatal overdoses.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the DEA and Palm Beach County Sheriff’s Office in this matter. She thanked the Palm Beach County State Attorney’s Office for their assistance. This case was prosecuted by Assistant U.S. Attorney Jennifer C. Nucci and Special Assistant U.S. Attorney Andrew Carrabis.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Kansas Man Pleads Guilty to Protecting Illegal Poker GamesRead the Press Release
WICHITA, KAN. – A Kansas man pleaded guilty Monday to trying to keep Wichita police from investigating illegal poker games, U.S. Attorney Stephen McAllister said.
Brock Wedman, 50, St. Marys, Kan., pleaded guilty to one count of concealing a felony. In his plea, he admitted he helped organize and recruit players for illegal poker games in Wichita.
On Feb. 12, 2014, Wedman was present at a poker game held at 922 1/2 E. Douglas in Wichita. Wedman did not know it, but a man he invited to play was a Wichita Police Department officer working undercover to investigate organized gambling. When Wedman became suspicious, he found the undercover officer’s car and took down the license plate and VIN numbers. Wedman gave the information to a friend who was a Wichita police officer and asked him to confirm the undercover officer’s identity.
Sentencing is set for Aug. 1. Both parties have agreed to recommend Wedman serve a year on federal probation. McAllister commended the FBI, the Wichita Police Department, Assistant U.S. Attorney Mona Furst and Assistant U.S. Attorney Aaron Smith for their work on the case.
KC Man Sentenced for Illegal Firearm after Shoplifting ArrestRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for illegally possessing a firearm after being arrested for shoplifting at Home Depot.
Joachim B. Jagetz, 39, was sentenced by U.S. District Judge Howard F. Sachs to seven years and eight months in federal prison without parole.
On Nov. 28, 2018, Jagetz pleaded guilty to being a felon in possession of a firearm.
Jagetz was arrested for shoplifting on June 19, 2018, after he tried to leave the Home Depot store at 111 E. Linwood Blvd., Kansas City, Mo. Jagetz had placed items from the hardware section inside a red backpack he carried on his shoulder, and walked out of the store without paying for those items. Jagetz was stopped by store employees and waited in the security office until police officers arrived.
An officer placed Jagetz in handcuffs and arrested him for shoplifting. Officers searched Jagetz and found a loaded SCCY 9mm semi-automatic pistol inside his pants.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Jagetz has a prior federal conviction for being a felon in possession of a firearm. He also has two prior felony convictions for assaulting law enforcement officers. The two officers were shot during the incident and two other officers were also shot at during the incident. Additionally, Jagetz has a prior felony conviction related to drug trafficking while he was incarcerated.
Six weeks prior to Jagetz’s arrest for shoplifting, he possessed a stolen Sig Sauer .45-caliber handgun while in possession of methamphetamine. Under the terms of his plea agreement, those charges were dismissed but considered by the court as relevant conduct for purposes of sentencing. Jagetz was previously verified as a member of the Freemont Hustlers.
This case was prosecuted by Assistant U.S. Attorney Emily A. Morgan. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Judge Sentences Johnstown Heroin Dealer to 8 Years in PrisonRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., has been sentenced in federal court in Johnstown to 96 months in prison and three years’ supervised release on his conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Arvell D. Brandon, age 40.
According to information presented to the court, on May 10, 2016, Brandon distributed a quantity of heroin.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation that led to the successful prosecution of Brandon.
Indictment for Federal Firearms Offense Relating to Officer-Involved Shooting in Pownal, VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Bernard Rougeau, 48, of Pownal, Vermont was arraigned today in federal court in Burlington. A federal grand jury indicted Rougeau for possessing a firearm having been previously convicted of a felony crime.
According to court records, the charge in the Indictment relates to Rougeau’s armed encounter with members of the Vermont State Police and local law enforcement on October 18, 2018 in Pownal. Police responded to a 911 call reporting that Rougeau was intoxicated and had cut himself. Rougeau confronted law enforcement officers while carrying a loaded 12 gauge double-barreled shotgun, and did not comply with officers’ commands to drop the weapon, instead raising it toward a Vermont State Trooper. Members of law enforcement shot Rougeau and deployed a taser before Rougeau was disarmed. Police then rendered medical aid before Rougeau was flown to Albany Medical Center, where he received treatment for his injuries. Rougeau was ultimately transferred to state custody, where he remains while awaiting trial in Bennington County on charges of Attempted Murder in the Second Degree, Aggravated Assault on a Law Enforcement Officer, Reckless Endangerment, and Interference with Emergency Services. At the time of his confrontation with law enforcement, Rougeau was prohibited from possessing firearms under federal law due to his felony record.
If convicted, Rougeau faces a maximum of ten years of imprisonment and a $250,000 fine. The actual sentence however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The United States Attorney emphasizes that the charge in the indictment is merely an accusation, and that the defendant is presumed innocent unless and until he is proven guilty.
United States Attorney Christina Nolan commended the investigative efforts of the Vermont State Police, as well as the assistance of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). She stated: “This case highlights the inherent danger of firearms in the hands of convicted felons and domestic abusers. The U.S. Attorney’s Office will continue to prioritize enforcement of federal gun laws against those who should never possess them. We will be especially aggressive and intolerant when it comes to those who endanger our brave men and women in uniform. This case exemplifies their courage and their daily sacrifices in keeping us all safer.”
“Convicted felons who carry firearms pose a serious risk to public safety,” said ATF Special Agent in Charge Kelly D. Brady. “ATF will continue to aggressively pursue these investigations and work with our law enforcement partners to remove these violent criminals from our communities.”
The United States is represented in this matter by Assistant U.S. Attorney Spencer Willig. The defendant is represented by the Federal Public Defender.
Henderson Man Sentenced to Nine Years in Prison for Receipt and Possession of over 47,000 Images and Videos of Child Pornography Including Infants and ToddlersRead the Press Release
LAS VEGAS, Nev. – A Henderson, Nevada, resident who pleaded guilty to receiving and possessing more than 47,000 images and videos of child pornography was sentenced today to nine years in federal prison, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
“As part of the Justice Department’s Project Safe Childhood program, the U.S. Attorney’s Office is committed to the safety and well-being of every child in Nevada,” said U.S. Attorney Trutanich. “We will prosecute child sex predators who exploit the youngest and most vulnerable citizens and bring them to justice. We remain vigilant in our continued efforts to work with local, state, and federal partners to protect Nevada’s children.”
Robert William Surdel, 40, pleaded guilty to one count of receipt of child pornography, which carries a five year mandatory minimum sentence, and one count of possession of child pornography. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey ordered him to pay $40,000 in restitution to his victims and sentenced him to lifetime supervised release. Under the Sex Offender Registration and Notification Act, he will be required to register as a sex offender.
Between November 2016 to January 2017, law enforcement officers were able to download images and videos of child pornography from Surdel’s computers. On February 22, during the execution of a search warrant at Surdel’s residence, he admitted to downloading child pornography using the internet and peer-to-peer programs. A forensic analysis of the seized devices discovered 46,001 images and 1,291 videos of child pornography that he meticulously sorted by subfolders, source, and genre. The longest video recovered during the search was over 26 hours. In one image that was recovered, the victim was only between 9 and 18 months of age.
The case was investigated by the FBI and Henderson Police Department. Assistant U.S. Attorney Elham Roohani prosecuted the case.
To report an incident involving the possession, distribution, receipt, or production of child pornography, contact the National Center for Missing & Exploited Children by phone at 1-800-843-5678 or online at www.cybertipline.com.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Head of Newark Drug Trafficking Organization Sentenced to 15 Years in Prison for Conspiracy to Distribute Heroin, Fentanyl, and Crack Cocaine and Possession of A FirearmRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 180 months in prison for his role in a conspiracy to distribute over a kilogram of heroin, 150 grams of fentanyl, and 240 grams of crack cocaine as well as possession of a firearm by a previously convicted felon, U.S. Attorney Craig Carpenito announced.
Ahmad Johnson, a/k/a “OC,” 38, previously pleaded guilty before U.S. District Judge Kevin McNulty to a superseding information charging him with one count of conspiracy to possess with intent to distribute more than one kilogram of heroin, 28 grams of cocaine base, and 40 grams of fentanyl, and one count of being a felon in possession of a firearm.
According to documents filed in this case and statements made in court:
From September 2016 through June 2017, Johnson and other members of the Johnson Drug Trafficking Organization engaged in a heroin distribution conspiracy that operated in and around Newark.
Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement officers learned that Johnson was a leader of the conspiracy and was responsible for obtaining wholesale amounts of narcotics, including heroin and cocaine, and processing and packaging the narcotics for sale in the Newark area. At times, after the narcotics were processed and packaged for sale, Johnson found users to “test” the narcotics to evaluate the quality, potency, and danger for broader distribution. After the narcotics were tested, members of the Johnson DTO sold the narcotics to other distributors and to users.
In addition to the prison term, Judge McNulty sentenced Johnson to five years of supervised release.
U.S. Attorney Carpenito credited special agents and officers with Drug Enforcement Administration’ High-Intensity Drug Trafficking Area (HIDTA) Group 1, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office, Economic Crimes Division in Newark.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). 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.
Defense counsel: Dennis S. Cleary Esq., West Orange, New Jersey
Former Pfeiffer University CFO Pleads Guilty to FraudRead the Press Release
GREENSBORO, N.C. - Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina, announced today that JEFFREY BYRON PLYLER, of Albemarle, North Carolina, pleaded guilty in federal court in Greensboro to a felony charge of making a materially false, fictitious, and fraudulent statement.
PLYLER, age 57, pleaded guilty before United States District Judge William L. Osteen, Jr. in connection with a forged signature on an Internal Revenue Service Form W-9. PLYLER forged the signature in order to receive payment from Pfeiffer University on a fraudulent invoice.
“Mr. Plyler held a position of trust as CFO of Pfeiffer University. Instead of fulfilling that trust, he exploited it for his own gain. Let this be a lesson that federal authorities will address fraud in this district,” said U.S. Attorney Martin. “I commend the FBI, U.S. Postal Investigation Service, and AUSA McFadden for their excellent work.”
PLYLER served as Pfeiffer University’s Vice-President for Financial Services and Chief Financial Officer. During a review of insurance invoices, Pfeiffer’s Controller of Financial Operations noted that the university was paying a significant amount of money for insurance commission/agent fees and an audit ensued. The audit uncovered several irregular invoices allegedly related to insurance commission/agent fees and consulting work completed by Circle One, Senn Dunn, and Leggett. Investigation revealed that PLYLER was listed as the registered agent for Circle One and Leggett in documents filed with the North Carolina Secretary of State, and engaged in business under the assumed business name of Senn Dunn according to an Assumed Business Name Certificate filed in Stanly County. Senn Dunn did not authorize Plyler to do so. Pfeiffer University paid a total of $527,350.00 on these invoices to accounts that PLYLER controlled.
The defendant faces a maximum penalty of sixty months confinement. The plea agreement requires PLYLER to make restitution in the amount of $527,350.00. Sentencing will occur in Greensboro on August 19, 2019 at 2 p.m.
The case was investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service. The case was prosecuted by Assistant United States Attorney JoAnna G. McFadden.
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Former NYPD Officer Pleads Guilty to Fraudulently Obtaining Disability Benefits and Tax EvasionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, John F. Grasso, the Special Agent-in-Charge of the United States Social Security Administration, Office of the Inspector General, New York Field Division (“SSA-OIG”), and Jonathan D. Larsen, the Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (“IRS-CI”), announced that GERARD SCPARTA, a former New York City Police Department (“NYPD”) officer, pled guilty to fraudulently obtaining over approximately $638,000 in disability benefits from the Social Security Administration (“SSA”) and underreporting income on his taxes by approximately $268,000. SCPARTA lied to the SSA about his disability, falsely represented to the SSA that he could not work due to disability, and failed to report earnings from employment as required. At the same time SCPARTA was collecting disability benefits, he earned a total of approximately $1.6 million working as a security guard and host at a strip club located in Manhattan. SCPARTA pled guilty before U.S. District Judge Alison J. Nathan.
Manhattan U.S. Attorney Geoffrey S. Berman said: “For two decades, former NYPD officer Gerard Scparta lied about being disabled to obtain over $638,000 in disability benefits through fraud, all while he was earning over $1.6 million as the host of a prominent strip club. In doing so, he stole money from truly disabled individuals who are dependent on this important source of public support. Then, not only did Scparta conceal his employment and income from the SSA by hiding behind a corporate entity purportedly owned by his wife, he also underreported his income to cheat on his taxes. Particularly today, on Tax Day, this case shows that such brazen fraud and tax evasion will be prosecuted to the fullest extent of the law.”
SSA-OIG Special Agent-in-Charge John F. Grasso said: “Today’s plea is the latest step in our continued and ongoing effort to bring to justice all individuals who commit Social Security Disability fraud and other crimes that stem from that act. I am very grateful for the efforts of our law enforcement partners involved in this investigation, to include the Internal Revenue Service Criminal Investigation Division, the New York City Department of Investigation and the continued commitment from the United States Attorney’s Office for the Southern District of New York. I strongly encourage the public to report suspected instances of Social Security fraud to the OIG’s Fraud Hotline at 1-800-269-0271 or http://oig.ssa.gov/report.”
IRS-CI Acting Special Agent in Charge Jonathan D. Larsen said: “The Special Agents of IRS-Criminal Investigation Division are sworn to protect the tax system and bring to justice those who would steal from the Treasury. An oath similar in nature to one Mr. Scparta swore to as a law enforcement officer.”
According to the allegations contained in the Complaint and Information filed in federal court:
The SSA administers Social Security Disability Insurance (“SSD”), a federal benefits program that provides monthly cash benefits to individuals who have worked in the past and paid into Social Security, but who can no longer engage in any substantial gainful activity due to medical disabilities. SSD is a disability benefit available only to individuals who have a qualifying disability and are unable to work in any profession. In order to receive SSD, a beneficiary must certify that he or she is incapable of performing any gainful activity due to disability. In addition, a beneficiary must report to the SSA all sources of income from work activity and any changes in the beneficiary’s medical condition, which are taken into account in determining whether the beneficiary is entitled to payments and the amount of those payments.
Between in or about 1986 and in or about 1997, SCPARTA worked as a police officer with the NYPD. In or about 1997, after reportedly sustaining an injury at the age of 32, SCPARTA was referred to an individual (“CC-1”) who helped him fraudulently obtain disability benefits. Specifically, CC-1 submitted SSD application materials signed by SCPARTA that falsely stated, among other things, that SCPARTA suffered from severe depression and anxiety, could not do anything around his house, and was unable to work in any capacity. In addition, CC-1 coached SCPARTA to make the same false statements to physicians who examined SCPARTA for the purpose of establishing his disability and submitting reports to the SSA. Based on these false statements and representations by SCPARTA in documents and reports submitted to the SSA, the SSA approved SCPARTA to receive disability benefits from in or about 1997 onward.
In addition to lying about his disability status and inability to work, SCPARTA falsely claimed on multiple forms submitted to the SSA that he did not work, and failed to report earnings from employment as required. In fact, from in or about April 2004 up to and including at least in or about December 2017, SCPARTA worked as a security guard and host at a strip club located in New York, New York (the “Strip Club”). From in or about 1997 up to and including in or about 2017, SCPARTA received a total of over approximately $638,000 in disability benefits for himself, his wife, and his children, during which time SCPARTA earned approximately $1.6 million from his work at the Strip Club.
Further, from in or about 2012 up to and including in or about 2017, SCPARTA engaged in tax evasion by concealing and attempting to conceal from the IRS the nature and extent of his income. Specifically, SCARPTA utilized a nominee company registered to his wife to report income that SCPARTA earned from the Strip Club and falsely underreported that income by a total of approximately $268,602 for the tax years 2012 through 2016.
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SCPARTA, 54, of Campbell Hall, New York, pled guilty to one count of theft of government property, which carries a maximum sentence of 10 years in prison, and one count of tax evasion, which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
As part of today’s guilty plea, SCPARTA agreed to forfeit the $638,586 in Social Security disability benefits he obtained fraudulently, file accurate amended personal tax returns, and pay past taxes due and owing to the IRS for tax years 2012 through 2016. SCPARTA is scheduled to be sentenced before Judge Nathan on July 16, 2019, at 12:45 p.m.
Mr. Berman praised the outstanding investigative work of the SSA-OIG and IRS-CI. Mr. Berman also thanked the Manhattan District Attorney’s Office and the New York City Department of Investigation for their assistance with the investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Sagar K. Ravi is in charge of the prosecution.
Former Most Wanted Fugitive Pleads Guilty to Multi-Million Dollar Health Care FraudRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Etienne Allonce, the former co-owner of Medical Solutions Management, Inc. (MSM), a medical equipment company in Hicksville, New York, pleaded guilty to health care fraud. In September 2018, Allonce was expelled from Haiti where he had fled 11 years earlier following the filing of an indictment in the Eastern District of New York charging him with billing Medicare and Medicaid for medical supplies never delivered to patients and never ordered by MSM. Prior to his return to the United States, Allonce was placed on the Most Wanted List of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). Allonce pleaded guilty before United States District Judge Joseph F. Bianco.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the guilty plea.
“With today’s guilty plea, Allonce will now pay the price for defrauding American taxpayers in order to benefit himself,” stated United States Attorney Donoghue. “The defendant’s decision to flee to Haiti may have delayed holding him accountable for his crimes, but he could not escape the resolve of this Office and our law enforcement partners to prosecute those who steal from the Medicare and Medicaid benefit programs that serve our most vulnerable citizens, including the elderly.” Mr. Donoghue expressed his grateful appreciation to the agents of the Federal Bureau of Investigation and the HHS-OIG, for their investigative work in the case.
According to court filings, MSM, formerly co-owned by Allonce and his wife, Helen Michel, provided durable medical equipment and supplies to nursing homes. Between April 2003 and March 2007, Allonce and Michel submitted approximately $10 million in false claims to Medicare and Medicaid, seeking payment for medical supplies purportedly provided to patients at nursing homes when those medical supplies had not actually been provided. Allonce fled the United States hours before federal agents arrested his wife. Michel was tried and convicted by a jury in August 2012. She was sentenced in April 2013 to 12 years’ imprisonment, and ordered to forfeit $1.3 million that had been seized by the government.
When sentenced, Allonce faces up to 10 years in prison, as well as restitution and a fine.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly, Burton T. Ryan, Jr. and Madeline O’Connor are in charge of the prosecution.
The Defendant:
ETIENNE ALLONCE
Age: 55
Port au Prince, HaitiE.D.N.Y. Docket No 07-CR-889 (JFB)
Former Long Island Defense Contractor and Its CEO Ordered to Pay over $48 Million in Cleanup Costs and Penalties for Discharging Hazardous Substances at Port Jefferson Superfund SiteRead the Press Release
Earlier today, at federal court in Central Islip, United States District Judge Joan M. Azrack entered judgment holding liable Lawrence Aviation Industries, Inc. (LAI), a former defense contractor, and its long-time owner and CEO, Gerald Cohen, for environmental cleanup costs and penalties under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980. As proven at trial, LAI and Cohen, in violation of several environmental laws and regulations, discharged a number of hazardous substances at LAI’s Port Jefferson facility on Long Island that could pose threats to human health and the environment. The Court found that, in addition to contaminating the LAI facility itself, LAI and Cohen were responsible for a mile-long contaminant plume in the groundwater beneath Port Jefferson. The Court’s judgment found LAI and Cohen jointly liable for $48,116,024.31 in costs incurred by the U.S. Environmental Protection Agency (EPA) in cleaning up the site, and imposed civil penalties of $750,000 against both LAI and Cohen, individually, for their failure to comply with requests for information issued by EPA.
“This case and the significant monetary penalties imposed by the Court should serve as a warning to would-be polluters, including individuals, that this Office and the EPA will use every tool at their disposal to protect Long Island’s groundwater and to ensure that those responsible for contamination will foot the bill for clean-up costs,” said Richard P. Donoghue, United States Attorney for the Eastern District of New York.
“EPA is pleased that our collaborative efforts with the United States Attorney’s Office in the Eastern District of New York have resulted in a victory for New Yorkers who have suffered for years with the environmental degradation inflicted by Lawrence Aviation and its owner, Gerald Cohen,” said U.S. Environmental Protection Agency Regional Administrator Pete Lopez. “This judgment provides for the reimbursement of money spent on cleanup work and imposes penalties that act as a deterrent. Our active engagement and work at this site will continue over the long-term, and we are proud that EPA’s Superfund continues to help revitalize this community and communities across the nation.”
In a separate, 37-page Memorandum and Order, the Court detailed the evidence establishing LAI’s and Cohen’s long history of disregard for federal, state and county environmental laws. In the early 1980s, for example, after the Suffolk County Department of Health issued a series of recommendations for LAI to come into compliance with various pollution control laws, LAI used a front-end loader to crush 55-gallon drums containing hazardous substances (among more than 1,600 of such drums identified on the property), resulting in a massive discharge of waste directly onto the ground. Samples taken from those drums revealed impermissibly high levels of trichloroethylene (TCE), among other pollutants. Nearly two decades later, in 1999, testing performed by the New York State Department of Environmental Conservation revealed contamination of groundwater and surface water at the site. Thereafter, in March 2000, the site was placed on the National Priorities List. For these and other reasons, the groundwater in the vicinity of the site is not currently used for drinking water.
EPA’s clean-up of the site, now into its 19th year, has included an exhaustive remedial investigation into the nature and scope of the contamination, various hazardous waste removal and stabilization activities, and the implementation and maintenance of two groundwater treatment systems designed to capture and treat contaminated groundwater. As noted in the Court’s decision, EPA’s activities at the LAI site have resulted in a decrease in size of the groundwater TCE plume and the removal of over 18,000 tons of soil contaminated with polychlorinated biphenyls, among other hazardous substances, including asbestos containing materials.
Various creditors have asserted claims against LAI and Cohen properties based on their respective liens. Those claims remain pending before the Court.
Previously, in 2008, Cohen and LAI pleaded guilty to violating the Resource Conservation and Recovery Act for storing hazardous wastes at the LAI Facility without a permit issued by the EPA or New York State. Cohen was sentenced to a term of imprisonment of one year and a day, and supervised release of thirty-six months. He and LAI were ordered to pay restitution to the EPA of $105,816.
The government’s case is being handled by Assistant United States Attorneys Richard K. Hayes, Robert B. Kambic, Clayton P. Solomon, and Special Assistant United States Attorney James F. Doyle, with assistance from EPA Assistant Regional Counsel Elizabeth Leilani Davis and Andrea L. Leshak. The government’s trial team also included former Assistant United States Attorneys Sandra L. Levy and Morgan J. Brennan.
Federal Prosecutions Serve as Reminder to Comply with Tax Obligations as Filing Deadline ArrivesRead the Press Release
CHICAGO — Federal authorities today announced criminal prosecutions against several Chicago-area defendants for a variety of alleged tax schemes. With the arrival of Tax Day, the prosecutions serve as a reminder that individual taxpayers are responsible for the contents of their own return.
The recent prosecutions announced today include charges against a south suburban tax professional who allegedly filed a false personal income tax return, as well as a guilty plea by a west suburban general contractor who admitted willfully failing to file income tax returns for nearly a decade.
In addition to criminal penalties, including potential incarceration, tax evaders remain responsible for all taxes and interest due, as well as civil penalties.
Today is the nation’s tax deadline.
“Preserving the integrity of the federal tax system is a significant priority in our office,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “Through vigorous criminal enforcement of the internal revenue laws, we will hold accountable those who attempt to cheat the system.”
“As the tax filing deadline quickly approaches, I urge all Chicago-area residents to fully comply with federal tax laws,” said Gabriel L. Grchan, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. “If you choose to disobey these laws, please understand that you are not just hurting the government, you are hurting your neighbors and your community. IRS special agents will continue to serve the American people by aggressively pursuing tax criminals year round.”
A federal jury last week convicted JERMAINE JACKSON, 48, of Chicago, of filing 13 fraudulent federal income tax returns in the names of various trusts he created. Each of the returns sought a fraudulent tax refund based on fictitious income and withholding numbers. The IRS identified the bogus nature of a dozen of the returns, but the agency paid a refund of $900,000 on one of them. U.S. District Judge John Z. Lee set sentencing for July 10, 2019. The government in Jackson’s case is represented by Assistant U.S. Attorneys Stephen Heinze and Patrick King.
In a criminal information filed last month, the U.S. Attorney’s Office charged LISA LLOYD TAYLOR, 51, of Country Club Hills, with one count of willfully filing a false personal income tax return, and one count of stealing approximately $134,835 of Social Security funds. According to the charges, Taylor, who owned Ebiz Accounting Services in Country Club Hills, filed a false personal income tax return for calendar year 2012 that falsely listed gross receipts or sales from her business as $7,890, when Taylor knew that her gross receipts or sales substantially exceeded that amount. Taylor has pleaded not guilty to the charges. A status hearing is set for April 23, 2019, before U.S. District Judge Andrea R. Wood. The government in Taylor’s case is represented by Assistant U.S. Attorney Nani Gilkerson. The public is reminded that charges are not evidence of guilt. Taylor is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The general contractor, STEPHEN KEEFE, 47, of Downers Grove, pleaded guilty last month to multiple counts of willfully failing to file personal income tax returns. Keefe, who previously owned Downers Grove-based Stephen Keefe Construction and S. Keefe Construction, admitted in a plea agreement that he willfully failed to file income tax returns for the calendar years 2010 through 2017, despite receiving taxable income of at least $2.08 million in those years. Keefe’s conduct caused a combined tax loss to the federal and state government of approximately $379,493. U.S. Magistrate Judge Sunil R. Harjani set sentencing for June 28, 2019. The government in Keefe’s case is represented by Assistant U.S. Attorney Patrick King.
Another recent tax prosecution resulted in a term of imprisonment for a northwest suburban business executive. PETER KONOPKA, 72, of Marengo, was sentenced in December to six months in federal prison, and ordered to pay restitution of $189,837. While President of Illinois-based Solarcrete Energy Efficient Building Systems, Konopka filed a bankruptcy petition on behalf of Solarcrete that contained false statements in order to conceal corporate assets from the bankruptcy trustee. In addition, Konopka willfully failed to report personal income for the calendar year 2011 that included payments from business accounts that were used to pay off personal loans. The government in Konopka’s case was represented by Assistant U.S. Attorney William Hogan.
For tips to assist taxpayers in choosing a reputable tax professional or preparing their own taxes, visit the official IRS website: https://www.irs.gov/help-resources.
East Haddam Grocery Store Agrees to Permit Service Animals in ADA SettlementRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a settlement agreement with the Grist Mill Market in East Haddam, Connecticut, to resolve allegations that the store was not operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreement resolves an ADA complaint filed by an individual with disabilities alleging that the Grist Mill Market required her to remove her service animal from the store as a condition of service. As a result of the settlement agreement, the store is in the process of posting signage indicating “Service Animals Welcome,” implementing a “Service Animal Policy,” which includes the types of legally permissible inquiries store employees may make of a customer who enters the store with a service animal, and training employees regarding the policy.
Under federal law, private entities that own or operate places of “public accommodation,” including grocery stores, are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
During the course of the U.S. Attorney’s investigation, the Grist Mill Market was sold to a new owner. U.S. Attorney Durham noted that the new owner and management of the Grist Mill Market has worked cooperatively with the U.S. Attorney’s Office to promptly address the ADA issues without litigation.
“The Americans with Disabilities Act requires that individuals are able to access and enjoy grocery stores and other places of public accommodation,” said U.S. Attorney Durham. “Our Office is committed to enforcing the ADA, which requires businesses to appropriately serve the diverse populations of patrons who live, work, and visit Connecticut. We appreciate the Grist Mill Market’s commitment to increasing access to its store for individuals with disabilities who require service animal assistance.”
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This matter was handled by Assistant U.S. Attorney Jessica H. Soufer of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Court Holds Former Detroit Tax Return Preparer in Contempt of Court for Violating Injunction OrderRead the Press Release
On Friday, a federal court in Detroit, Michigan, found Dieasha Davis in civil contempt of a permanent injunction barring her from operating a tax return preparation business and preparing federal tax returns for others, the Justice Department announced.
In the contempt order, Judge Denise Page Hood found that Davis continued to prepare federal income tax returns and profited from preparing tax returns in violation of the court’s injunction, which had been entered against her and the business on September 25, 2017. Davis and the business agreed to the 2017 civil injunction order.
In February, 2019, following an investigation of Davis’ activities, the United States presented to the district court what the court on Friday found was clear and convincing evidence that Davis had violated the injunction. The court entered an order requiring Davis to file a written response to show cause why she should not be held in civil contempt. Davis did not file any response.
Based on the evidence submitted by the United States, the court also found that tax returns Davis prepared in violation of the injunction contained false and fraudulent information after entry of the injunction.
In addition, the court ordered Davis to pay to the United States $24,671 for attorney fees and costs incurred in detecting Davis’ non-compliance and bringing her violations of the injunction to the court’s attention.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website about selecting a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Conspirator in Fentanyl, Cocaine Trafficking Organization SentencedRead the Press Release
PROVIDENCE – A Providence man who conspired with the leader of a drug trafficking conspiracy that imported hundreds of kilograms of fentanyl and cocaine from the Dominican Republic and distributed them in Rhode Island and Massachusetts has been sentenced to 60 months in federal prison, announced United States Attorney Aaron L. Weisman, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division Brian D. Boyle, and Superintendent of the Rhode Island State Police Colonel James M. Manni.
Audi E. Diaz, aka Boku, 29, previously admitted to the Court that he worked closely with Ramon Delossantos, of Cumberland, R.I., to prepare and distribute multi-kilogram shipments of fentanyl and cocaine to mid-level distributors in Rhode Island and Massachusetts.
As the result of a DEA and Rhode Island State Police High Intensity Drug Trafficking Area Task Force investigation during the summer and fall of 2017 dubbed “Operation Panamera,” more than two-dozen people were arrested and at least 23 kilograms of suspected fentanyl, 11 kilograms of cocaine, 11 kilograms of marijuana and two kilograms of psilocybin mushrooms were seized.
Delossantos was identified by law enforcement as the leader of the drug trafficking organization. He arranged for the shipment of fentanyl and cocaine from the Dominican Republic and oversaw the distribution of the drugs to mid-level distributors in Rhode Island and Massachusetts.
According to information presented to the Court, between August 10 and September 30, 2017, approximately 470 communications between Diaz and Delossantos were electronically intercepted by law enforcement. The conversations ranged in topic from Diaz arranging for numerous multi-kilogram purchases of fentanyl and cocaine from Delossantos for distribution to others, to Diaz borrowing equipment from Delossantos to prepare kilogram “bricks” of fentanyl and cocaine for delivery, to discussions between Delossantos and Diaz that Diaz take over Delossantos’ drug trafficking business either temporarily while Delossantos traveled outside of the country or on a permanent basis.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., sentenced Diaz to 60 months in federal prison, followed by a term of supervised release of 3 years.
Diaz, arrested and ordered detained on October 30, 2017, pleaded guilty on January 14, 2019, to conspiracy to possess with the intent to distribute fentanyl and conspiracy with the intent to distribute cocaine.
Delossantos, arrested on October 2, 2017, and ordered detained in federal custody, pleaded guilty on June 14, 2018, to conspiracy to possess with the intent to distribute fentanyl and conspiracy with the intent to distribute cocaine is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on June 14, 2019.
The cases are being prosecuted by Assistant U.S. Attorneys Paul F. Daly, Jr. and Milind M. Shah.
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Colorado Springs Chiropractor Sentenced for Conspiracy and Filing False Income Tax ReturnsRead the Press Release
DENVER – Thomas Forster Gehrmann, Jr., age 45, of Colorado Springs, Colorado was sentenced by U.S. District Court Judge R. Brook Jackson to serve 24 months in federal prison followed by 3 years on supervised release for conspiracy to defraud the United States and filing three false income tax returns with the Internal Revenue Service, announced U.S. Attorney Jason Dunn and IRS Criminal Investigation Special Agent in Charge Steven Osborne. Gehrmann was indicted on July 22, 2015. He was found guilty after a six-day trial before Judge Jackson on November 6, 2018. Gehrmann was sentenced on April 4, 2019. A hearing to determine restitution is scheduled for May 23, 2019.
According to information contained in the indictment and evidence presented at trial, from January 2007 until September 2011, Gehrmann conspired to defraud the U.S. by filing false U.S. Individual Income Tax Returns for the calendar years 2007, 2008, 2009 and 2010 after failing to disclose to his CPA income diverted from cash and checks.
Atlas Chiropractic Center at Briargate, Inc. and SpineMed Decompression Centers of Colorado, LLC (collectively, the “Atlas Entities”) are located in Colorado Springs, Colorado, and are in the business of providing chiropractic and spine-adjustment related services. During times relevant to this indictment, the Atlas Entities shared employees, business bank accounts, an outside bookkeeper, a Certified Public Accountant (“CPA”), and other resources, which were jointly managed by Gehrmann.
Patients of the Atlas Entities typically checked in for their appointments at a reception desk, completed requested paperwork, and were seen by Gehrmann. Payments for the services were made by means of check, cash, credit card or a third-party payer, such as an insurance company or an attorney. A sign was placed on the Atlas Entities reception desk that directed patients to make their checks payable to the individual chiropractic provider, rather than one of the Atlas Entities. Employees would copy each check received from a patient or third party payer, and compile copies of the checks in the Atlas Entities’ check binder. Daily spreadsheets were created and maintained in the binder, known as the “Daily Stats Sheets.”
Checks made payable to Atlas or SpineMed were regularly deposited in the business bank accounts for the Atlas Entities, together with patients’ payments via credit card. The actual cash and checks made payable to Gehrmann were placed into a receptacle known as the “cookie jar,” which was typically kept in Gehrmann’s office. Cash payments were kept separately and divided between the defendant and two other chiropractors. Once each week they divided up the contents of the “cookie jar” between themselves and that for certain periods, Gehrmann noted the amount that each person received as his share for that week in a book titled “Secret Records.”
Statements reflecting the deposits into the Atlas Entities’ business bank accounts were sent to the outside bookkeeper, who understood those were the total business income for the Atlas Entities. Those records were in turn supplied to the CPA for his use in preparing documents and filings including partnership tax filings for the Atlas Entities, and individual tax returns of Gehrmann. He did not send to the Atlas Entities’ outside bookkeeper or the CPA the check binders, the Daily Stats Sheets, or any other documents that included records reflecting all payments by Atlas Entities’ patients.
“On this tax day, it is important to remind would-be tax-cheats that we will aggressively investigate and prosecute tax fraud cases and that those found guilty can face significant jail time,” said U.S. Attorney Jason Dunn.
"Tax fraud is not a victimless crime,” said Steven Osborne, IRS Criminal Investigation Special Agent in Charge. “This is an important victory for America’s taxpayers who play by the rules and have no tolerance for those who shirk their tax responsibilities. The courts have overwhelmingly and consistently shown that you will be held accountable for such actions, and today's sentencing is a costly reminder."
Carlson, who pled guilty to filing a false tax return on October 24, 2018, is scheduled to be sentenced by Judge Jackson on April 17, 2019.
This case was investigated by IRS Criminal Investigation.
This case was prosecuted by Assistant U.S. Attorneys Suneeta Hazra, Bryan Fields, and Conor Flanigan.
Chevez McCray and Hector Mendez-Sales Sentenced to Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On April 15, 2019, Chevez McCray, 35, of Morristown, Tennessee, and Hector Mendez-Sales a/k/a Oswaldo Sanchez, 34, a citizen of Guatemala residing in Talbott, Tennessee, were sentenced by the Honorable J. Ronnie Greer, Senior U.S. District Court Judge, for their roles in a methamphetamine distribution conspiracy.
Both McCray and Sales-Mendez pleaded guilty December 2018 to conspiring with each other to distribute methamphetamine. Sales–Mendez was also convicted of illegally reentering the United States after having being deported. McCray was sentenced to serve 276 months in federal prison. Mendez Sales was sentenced to 151 months in federal prison.
Agencies involved in this investigation included the Hamblen County Sheriff’s Department, Jefferson County Sheriff’s Department, FBI, and U.S. Department of Homeland Security, Immigration and Customs Enforcement. Assistant U.S. Attorneys William Roach and Robert Reeves represented the United States.
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Cardiac Associates, P.C. Agrees to Pay the United States over $399,000 to Settle False Claims Act Allegations Relating to Improper Billing PracticesRead the Press Release
Baltimore, Maryland – Cardiac Associates, P.C. has agreed to pay $399,230.35 to settle claims that they submitted false claims to the United States for services not rendered. Cardiac Associates, P.C. is a medical practice with offices located in Rockville, Olney, Laurel and Germantown, Maryland.
The settlement agreement was announced today by United States Attorney for the District of Maryland Robert K. Hur and Maureen Dixon, Special Agent in Charge of the Office of Inspector General for the Department of Health and Human Services.
According to the settlement agreement, the United States contends that from January 1, 2012 through December 21, 2016, Cardiac Associates billed for two similar procedures on the same date for the same patient, when only one of the procedures was actually performed.
Specifically, Cardiac Associates, P.C. administered tests to patients to assess the venous sufficiency in the lower extremities. As part of this process, they performed a venous Doppler duplex examination to determine if there were blood flow issues, including deep vein thromboses, in the patient’s legs. They billed Medicare under CPT 93970 for this work.
Billing records showed that Cardiac Associates, P.C. billed for an additional test using CPT 93965, which references an older, different technology, one that has generally been replaced by the CPT 93970 technology. The United States contends that billing both CPT codes 93965 and 93970 was improper and led to the submission of false claims to the Medicare and Medicaid programs.
The claims resolved by this settlement are allegations only. The settlement is not an admission of liability by Cardiac Associates, P.C., nor a concession by the United States that its claims are not well founded.
U.S. Attorney Robert K. Hur thanked Assistant United States Attorney Allen Loucks and Investigator Steve Capobianco, who handled the case.
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Canadian Citizen Sentenced in Alien Smuggling Case Involving Underground Cargo Train Tunnel Between Canada and United StatesRead the Press Release
Today, a Guatemalan native and naturalized citizen of Canada, was sentenced to 16 months in prison, a $8,680 fine, a $600 special assessment and one year of supervised release in an alien smuggling case in which illegal aliens were smuggled into the United States through the underground cargo railroad tunnel which runs under the Detroit River between Canada and the United States, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by U.S. Border Patrol Chief Patrol Agent Douglas Harrison.
Juan Antonio Garcia-Jimenez, 53, of Windsor, Ontario, was sentenced by Stephen J. Murphy, III. U.S. District Court Judge, Eastern District of Michigan.
The investigation conducted by the U.S. Department of Homeland Security, Customs and Border Protection, Immigration and Customs Enforcement and the Royal Canadian Mounted Police, found that between July 30, 2018 and August 25, 2018, Garcia-Jimenez smuggled six aliens into the United States by instructing them to enter into the underground train tunnel late at night, and walk on the narrow walkway 1.6 miles until they arrived in the United States. U.S. Border Patrol Agents arrested each of the aliens as they exited the tunnel into the United States. The aliens were charged with illegal entry and after sentencing were removed to their native country.
“Today’s sentencing is the direct result of a whole of government approach to border security,” said U.S. Border Patrol Chief Patrol Agent Douglas Harrison. “The teamwork demonstrated in this case should be commended for their actions to arrest and prosecute Garcia-Jimenez who disregarded the safety of 6 aliens for financial gain.”
The case was prosecuted by Assistant United States Attorneys Timothy McDonald and Susan Fairchild with the assistance of DHS/ICE and RCMP.
California Tobacco Company Executive Charged in Scheme to Avoid the Payment of More than $5 Million in Federal Excise TaxesRead the Press Release
A California tobacco company executive on Friday was arrested after being charged with a conspiracy to evade the payment of millions of dollars in excise taxes on imported cigars.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Nicholas Colucci, Assistant Administrator for Field Operations, Alcohol and Tobacco Tax and Trade Bureau (TTB), and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Washington, DC Field Office, made the announcement.
Akrum Alrahib, 41, of Los Angeles, California, was charged by indictment with the following counts: conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371; conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349; wire fraud, in violation of Title 18, United States Code, Section 1343. The indictment also charged Alrahib with violations of the Internal Revenue Code, including: refusing to pay Federal Tobacco Excise Tax on large cigars, and attempting to evade or defeat the tax or payment thereof, in violation of 26 U.S.C. § 5762(a)(3); and willfully attempting to evade or defeat Federal Tobacco Excise Tax on large cigars, in violation of Title 26 U.S.C. § 7201.
According to the indictment, Alrahib was the President of Trendsettah USA, Inc. (“Trendsettah”), a California tobacco company authorized to transact business in the State of Florida. Trendsettah sold various tobacco products, such as large cigars, and marijuana paraphernalia, such as “blunt wraps,” many of which were imported from the Dominican Republic.
In 2013, Alrahib partnered with Gitano Pierre Bryant, Jr., a TTB-permitted tobacco importer, to import large cigars from the Dominican Republic into Miami, Florida. The indictment alleges that Alrahib and Bryant agreed to lower their costs by underreporting the Federal Tobacco Excise Tax that was due and owing on the imported cigars. According to the charging document, Alrahib and Bryant consistently evaded Federal Tobacco Excise Tax by concealing the price Alrahib actually paid for the cigars.
It is alleged that Alrahib paid over $9 million for untaxed tobacco products during the course of the charged conspiracies and received over $700,000 in kickbacks from Bryant, on which aggregate amount he did not pay the required federal excise tax.
Alrahib will remain in custody pending his removal to the Southern District of Florida.
If convicted, Alrahib can be sentenced up to five years imprisonment on the conspiracy to defraud the United States charge and each of the charges for violations of the Internal Revenue Code, and up to 20 years imprisonment on the wire fraud and wire fraud conspiracy charges. Additionally, the court may impose a fine of up to $250,000, on each count alleged in the indictment.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the TTB and IRS-CI. The case is being prosecuted by Assistant United States Attorney Christopher Browne.
An indictment contains mere allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
California Man Sentenced to 28 Years in Federal Prison for Multi-State Methamphetamine ConspiracyRead the Press Release
Jackson, Miss. – Christopher Raynard Kidd, 27, of Rialto, California, was sentenced Friday afternoon by Chief U.S. District Judge Daniel P. Jordan III to 336 months in federal prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute 50 grams or more of methamphetamine and possession with intent to distribute 50 grams or more of methamphetamine, announced U.S. Attorney Mike Hurst. He was also ordered to pay a $2,500 fine. Kidd was previously found guilty of the charges following a five-day trial in October 2015.
This case is the result of an extensive investigation dubbed "Operation Yeti Ice" targeting an illegal narcotics distribution network in central Mississippi that involved the distribution of over 100 Kilograms of Methamphetamine.
Beginning in early March 2013, and continuing through August 2014, Christopher Raynard Kidd conspired with others to obtain and distribute methamphetamine in Scott, Newton, Leake, and Neshoba Counties in Mississippi. The defendants used Federal Express, UPS, and the United States Postal Service to send methamphetamine from California to Mississippi. The defendants also transported the narcotics in compartments that were concealed in motor vehicles.
The network encompassed the States of California and Mississippi. The investigation yielded arrests of 19 additional defendants. The co-defendants and their sentences are listed below:
1. Rodney Gerald Henderson, 69, of Newton, Mississippi and Rialto, California, was sentenced to 235 months in federal prison followed by 5 years supervised release and ordered to pay $4,800 in restitution.
2. Steven Elias Ochoa, 29, of San Bernardino, California, was sentenced to 292 months in federal prison followed by 5 years supervised release, and ordered to pay a $1,000 fine.
3. Kafien Kidd, 35, of Newton, was sentenced to 300 months in federal prison followed by 5 years of supervised release, and ordered to pay a $1,500 fine.
4. Walter Pernillo, 42, of San Bernardino, California, was sentenced to 151 months in federal prison followed by 5 years of supervised release.
5. Michael Thomas McLemore, 38, of Pearl, was sentenced to 260 months in federal prison followed by 5 years of supervised release, and ordered to pay a $1,500 fine.
6. Jennifer Higgins McLemore, 35, of Pearl, was sentenced to 64 months in federal prison followed by 5 years supervised release.
7. Marcos Jones, 35, of Newton, was sentenced to serve a term of 160 months in federal prison followed by 5 years supervised release, and ordered to pay $2,400 in restitution.
8. Jennifer Toole Kidd, 30, of Newton, was sentenced to 37 months in federal prison followed by 3 years supervised release, and ordered to pay a $1,500 fine.
9. Angelina Fortenberry, 38, of Decatur, was sentenced to 46 months in federal prison followed by 3 years supervised release.
10. Stacy Shelwood, 32, of Ocean Springs, was sentenced to 63 months in federal prison followed by 3 years supervised release.
11. Jakeivia Fairley, 24, Rialto, of California, was sentenced to 51 months in federal prison followed by 3 years supervised release.
12. Cliff Williams, 36, of Meridian, was sentenced to 133 months in federal prison followed by 3 years supervised release.
13. Princess Grace, 35, of Meridian was sentenced to 36 months in federal prison followed by 3 years supervised release.
14. Terry Garth, 24, of Newton, was sentenced to 66 months in federal prison followed by 3 years supervised release.
15. Thomas Odell Mason 55, of Little Rock, Mississippi, was sentenced to 105 months in federal prison followed by 5 years supervised release, and ordered to pay a $1,500 fine.
16. Ronnie Round, 45, of Conehatta, was sentenced to 53 months in federal prison followed by 3 years supervised release, and ordered to pay a $1,500 fine.
17. Beatrice Williams McEntee, 56, of Forest, was sentenced to 18 months in federal prison followed by 3 years supervised release.
18. Jaime Tavare Thames, 40, of Forest, was sentenced to 124 months in federal prison followed by 4 years supervised release, and ordered to pay a $1,106 fine.
19. Kenneth Waggoner, 46, of Forest, was sentenced to 121 months in federal prison followed by 3 years supervised release, and ordered to pay a $1,500 fine.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This OCDETF case is a result of a joint investigation by the Drug Enforcement Administration and the Mississippi Bureau of Narcotics. Assisting agencies include the Scott County Sheriff’s Office, Leake County Sherriff’s Office, Madison County Sherriff’s Office, United States Postal Service, Internal Revenue Service, Carthage Police Department, Forest Police Department, Newton County Sherriff’s Office, Lauderdale County Sherriff’s Office, Decatur Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Richland Police Department, Pearl Police Department, Ridgeland Police Department, Jackson Police Department, and the United States Marshal Service.
The case was prosecuted by Assistant U.S. Attorney Erin Chalk.
Brookfield Restaurant to Make Changes to Comply with Americans with Disabilities ActRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office will issue a Letter of Resolution to Hacienda Don Manuel Restaurant in Brookfield to resolve allegations that the restaurant was not operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
The Letter of Resolution will resolve an ADA complaint filed by an individual with mobility disabilities alleging that Hacienda Don Manuel’s bar counter was not accessible to individuals in wheelchairs and that Hacienda Don Manuel would not provide “Happy Hour” services to individuals in wheelchairs sitting at tables in the restaurant.
In order for the U.S. Attorney’s Office to issue the Letter of Resolution, Hacienda Don Manuel will design and construct a fully accessible bar counter with a low section for individuals who use wheelchairs. Additionally, Hacienda Don Manuel will institute a written policy regarding the provision of Happy Hour specials to individuals with disabilities who may need to sit at tables within the restaurant. Finally, Hacienda Don Manuel will train managers, bartenders and staff on the new policy and on the provision of services to individuals with disabilities. Hacienda Don Manuel will perform these obligations within six months.
Under federal law, private entities that own or operate places of “public accommodation,” including restaurants, are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages and civil penalties.
U.S. Attorney Durham noted the commitment of the owner of Hacienda Don Manuel to work collaboratively with the U.S. Attorney’s Office to address the ADA issues and to increase the restaurant’s accessibility without litigation. “We appreciate that Hacienda Don Manuel’s ownership and management cooperated during our investigation and we commend their prompt action to ensure the restaurant’s compliance with the ADA,” said U.S. Attorney Durham
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This matter was handled by Assistant U.S. Attorney Jessica H. Soufer of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Bridgeton Man Pleads Guilty to Possession of Child Pornography ChargesRead the Press Release
St. Louis, MO – Matthew Gregory, 34, of Bridgeton, MO, pled guilty to one felony count of Possession and Accessing with the Intent to View Child Pornography. Gregory appeared before United States District Judge Henry Autrey and set sentencing for July 16, 2019.
According to court documents, on January 25, 2017, while at Southeast Missouri Behavioral Health, Inc., Gregory purchased a cell phone and used the Internet with his cell phone to access child pornography to view more than 600 images of child pornography. He admitted searching and viewing child pornography on a chat website where pornography was exchanged.
Gregory faces a minimum penalty of 10 years and a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by SA John “Mark” Burbridge of the Federal Bureau of Investigation. Assistant U.S. Attorney Rob Livergood is handling the case for the U.S. Attorney’s Office.