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Monday 4 March 2019
Former Allen County Sheriff pleads guilty to extortion and soliciting bribesRead the Press Release
The former Allen County Sheriff pleaded guilty to for asking for and taking bribes from people arrested in prostitution stings, suspected gamblers and others.
Samuel A. Crish, 56, is scheduled to be sentenced later this year. He pleaded guilty to multiple counts of extortion and soliciting bribes.
“The conduct Mr. Crish admitted to is as offensive as it is audacious,” U.S. Attorney Justin E. Herdman said. “Demanding bribes from gamblers and johns arrested in prostitution stings reads like something out of a bad movie. This defendant let down the people of Allen County and the men and women who served with him at the Sheriff’s Office. He does not represent the vast majority of law enforcement, and he will now be held accountable for his crimes.”
“Mr. Crish tarnished his badge when he chose to use his official capacity to influence criminal investigations and to protect self-interests,” said FBI Special Agent in Charge Eric Smith. “As a law enforcement officer and county sheriff sworn to uphold the law, his conduct was abhorrent. We are pleased that Mr. Crish has now accepted responsibility for his actions.”
Court documents detail Crish extorting or soliciting tens of thousands of dollars from several people between 2012 and 2016.
According to court documents:
Crish joined the Allen County Sheriff’s Office in 1991, where he held numerous positions, including commander of the office’s Investigative Division and the West Central Ohio Crime Task Force (WCOCTF). He was elected sheriff in 2008, 2012 and 2016.
In June 2012, Crish approached a person identified in the charges as Person 1 and asked Person 1 for $8,000, falsely stating he needed the money to cover medical bills. Person 1 gave Crish the money in cash in an alley behind the sheriff’s office in July 2012.
Two months later, Person 1 applied for the position of nurse at the Allen County Jail, which Crish oversaw. Based on conversations with Crish, Person 1 understood the job was theirs. Crish stated in October 2012 he would try to hire Person 1 as nurse. In the same conversation, he stated he needed $42,000 to pay his debts and asked if Person 1 could help.
Person 1 took out a home equity line of credit and, on Oct. 12, 2012, gave Crish a check for $42,000 in the alley behind the sheriff’s office. Crish agreed to repay the money in monthly increments of $480. On Dec. 15, 2012, Person 1 was hired by the Allen County Sheriff’s Office to work as the nurse at the county jail.
Person 3 operated a used car business and was arrested by members of the sheriff’s office and WCOCTF on Aug. 19, 2015 during a prostitution sting. He was charged with solicitation in Lima Municipal Court.
Crish visited Person 3’s business several times in August and September 2015, at one point asking Person 3 for a $7,000 loan. Person 3 gave Crish a check for $7,000 on Sept. 25, 2015.
Crish met with prosecutors and law enforcement officials about Person 3’s case on Nov. 24, 2015, and demanded the Lima City Attorney’s Office drop the charges. The solicitation case was dismissed on Feb. 18, 2016. Eight days later, Crish texted Person 3 to meet, where they discussed the dismissal of Person 3’s case.
Person 4 operated a used car business in Elida, Ohio. Crish asked Person 4 in September 2015 to work as an informant. He also asked Person 4 to loan him $10,000.
Person 4 gave Crish $10,000 in cash on Nov. 3, 2015. The next day, Person 4 was arrested at a motel in Lima as part of a prostitution sting operation. Following his arrest, Person 4 asked to speak to Crish. All of the other men arrested were charged.
Crish visited Person 4’s business on Nov. 5, 2015, and told him not to worry about the arrest because he was working for Crish.
Crish visited Person 4’s business again on Nov. 17, 2015, and asked for $500. Person 4 insisted Crish would have to pay back the $500, unlike the previous $10,000. Crish called Person 4 in May 2016 and told him he was “fine” referring to the charges for the prostitution arrest.
Person 5 owned a grocery store in Allen County. Crish stopped by Person 5’s business in October 2015 to ask for a loan. Crish inferred during the visit that an agency was coming to investigate Person 5’s business for suspected illegal gambling operations, but that Crish could stop the investigation if Person 5 provided Crish with a loan.
Person 5 gave Crish a $2,000 loan in October 2015, which Crish repaid without interest.
This case was investigated by the FBI and the Ohio Bureau of Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney Gene Crawford.
Five Defendants Charged with Murder in Aid of Racketeering and Other CrimesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of superseding federal indictments charging RICHARD DRAYTON, a/k/a “Rad,” FRANKIE REYES, a/k/a “Biscuit,” ALFREDO RODRIGUEZ, a/k/a “Fetti,” TEVIN MABLE, a/k/a “Tot,” and JORGE IRIZARRY, a/k/a “Gito,” with gang-related crimes, including the March 13, 2015, murder of Johnathan Martinez, 18, in the Bronx, New York.
U.S. Attorney Geoffrey Berman said: “As alleged, the defendants were members of a violent gang who killed a young man from their neighborhood in a pointless, gang-related dispute. We thank HSI and the NYPD for their outstanding work investigating this terrible murder. We will continue our efforts with our law enforcement partners to prevent such senseless acts of violence.”
HSI Special Agent in Charge Angel M. Melendez said: “As alleged, the individuals charged are members of the Crips gang who gunned down an 18-year-old man in the Bronx to bolster their street credibility. For this alleged violent crime, if convicted, they could face life sentences that would put an end to their racketeering and murderous ways. HSI remains committed to working alongside NYPD’s Bronx Violent Crime Squad.”
NYPD Commissioner James P. O’Neill said: “The ability of investigators to bring about justice for this young man and provide a sense of closure to his loved ones is paramount. The identification and arrest of these defendants was a team effort that would not have been possible without the close partnership that exists between the NYPD and our law-enforcement partners. I thank and commend the NYPD investigators, the Southern District of New York, and Homeland Security Investigations for their relentless work in this case.”
According to the Indictment[1]:
DRAYTON, REYES, RODRIGUEZ, MABLE, and IRIZARRY were members of the “Wild Card” set of the Crips gang. The defendants sold drugs and used guns to further the aims of the Wild Cards. On March 13, 2015, the defendants took part in the shooting murder of Johnathan Martinez in order to maintain and increase their reputation in the Wild Cards.
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IRIZARRY, 25, of the Bronx, New York, was arrested on March 2, 2019, near Ocala, Florida. He was presented in federal court in the Middle District of Florida earlier today, and will be transported to the Southern District of New York to face charges. MABLE, 26, of the Bronx, New York, was arrested on February 28, 2019, near Kinston, North Carolina. He was presented in federal court in the Eastern District of North Carolina, and will also be transported to the Southern District of New York to face charges. DRAYTON, 43, of the Bronx, New York, was arrested in the Bronx on Friday, February 22, 2019, and presented in this District before United States Magistrate Judge Ona Wang the same day. REYES, 24, and RODRIGUEZ, 27, both of the Bronx, New York, were already in federal custody on other charges. This case is assigned to United States District Judge Loretta A. Preska.
Charts containing the names, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the NYPD’s Bronx Violent Crime Squad and HSI’s Violent Gang Unit.
The prosecution of this case is being handled by the Office’s Violent and Organize Crime Unit. Assistant United States Attorneys Hagan Scotten, Gina Castellano, and Adam Hobson are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless proved guilty.
COUNT
DEFENDANT(S)
MAX. TERM OF IMPRISONMENT
Count One: Conspiracy to Commit Racketeering
(18 U.S.C. § 1962(d))
Richard Drayton
Frankie Reyes
Alfredo Rodriguez
Tevin Mable
Jorge Irizarry
Life Imprisonment
Count Two: Murder in Aid of Racketeering
(18 U.S.C. § 1959(a)(1))
Richard Drayton
Frankie Reyes
Alfredo Rodriguez
Tevin Mable
Jorge Irizarry
Mandatory Minimum Sentence of Death or Life Imprisonment
Count Three: Use of a Firearm to Commit Murder (18 U.S.C. § 924(j)(1))
Richard Drayton
Frankie Reyes
Alfredo Rodriguez
Tevin Mable
Jorge Irizarry
Death or Life Imprisonment; Mandatory Minimum Sentence of 5 Years
Count Four: Use and Discharge of Firearms in Furtherance of Racketeering Conspiracy (18 U.S.C. § 924(c)(1)(A)(iii))
Richard Drayton
Frankie Reyes
Alfredo Rodriguez
Jorge Irizarry
Life Imprisonment; Mandatory Minimum Sentence of 10 Years
Count Five: Conspiracy to Distribute Narcotics (21 U.S.C. §§ 846 and 841(b)(1)(A))
Richard Drayton
Frankie Reyes
Jorge Irizarry
Tevin Mable
Life Imprisonment; Mandatory Minimum Sentence of 10 Years
Count Six: Use and Discharge of Firearms in Furtherance of Narcotics Conspiracy (18 U.S.C. § 924(c)(1)(A)(iii))
Richard Drayton
Frankie Reyes
Jorge Irizarry
Tevin Mable
Life Imprisonment; Mandatory Minimum Sentence of 10 Years
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Federal Grand Jury Indicts Opelika Woman for Wire FraudRead the Press Release
BIRMINGHAM – A federal grand jury indicted a Opelika woman on multiple counts of wire fraud announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp.
Andrea Payne, 63, is charged in a ten-count indictment filed in U.S. District Court with stealing money from the Talladega County Association of Volunteer Fire Departments. Payne previously served as the Treasurer of the Talladega County Association of Volunteer Fire Departments. Between 2012 and 2018, the Association received quarterly checks from the Talladega County Commission as distributions from the two-cent sales tax revenue. The purpose of the distributions was to provide financial assistance to fifteen volunteer fire departments throughout Talladega County. As the Treasurer, Payne was responsible for receiving the funds from the Talladega County Commission and distributing the funds equally among the fifteen volunteer fire departments within Talladega County. Payne was not authorized to receive any compensation for her role as the elected Treasurer and was not authorized to use the funds for personal use. Payne embezzled funds from the Association by using the funds to pay for her personal credit card. The defendant’s scheme resulted in Payne stealing over $640,000 from the Association.
“The defendant is facing federal charges due to the outstanding work of the Talladega County Sheriff’s Office and the FBI,” Assistant U.S. Attorney Robin Beardsley Mark said. “The defendant’s actions in stealing money from local volunteer fire departments threatens the safety and security of residents of Talladega County. The money should have been used to aid in training volunteer firemen, to provide equipment and supplies, and to assist with disaster or emergency services.”
The maximum penalty for each count of wire fraud is 20 years in prison and a $250,000 fine.
The FBI investigated the case, along with the Talladega County Sheriff’s Office, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Fayetteville Man Sentenced for Drug Distribution and Firearm OffensesRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge James C. Dever III sentenced DEMETRIE EVERETT, 24, of Fayetteville, North Carolina, to 72 months imprisonment, followed by five years of supervised release.
EVERETT was named in an Indictment filed on June 13, 2018, charging him with conspiracy to distribute and possess with intent to distribute heroin and fentanyl, distribution of fentanyl, distribution of heroin, and possession of a firearm in furtherance of a drug trafficking crime. On October 18, 2018, EVERETT pled guilty to conspiracy to distribute and possess with intent to distribute heroin and fentanyl, distribution of heroin, and possession of a firearm in furtherance of a drug trafficking crime.
According to the investigation, EVERETT distributed controlled substances which led to an immediate opioid overdose in April 2018. Following this overdose, and during the course of the investigation, law enforcement conducted two purchases of narcotics from EVERETT including heroin and fentanyl. A subsequent search warrant executed at EVERETT’s residence revealed additional controlled substances, as well as a firearm.
This case was implemented through 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 in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by the Fayetteville Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Lucy Partain represented the government.
FEMA Applicant Sentenced to 15 Months for FraudRead the Press Release
Orlando, Florida – U.S. District Judge Gregory A. Presnell today sentenced Sandreania Davis (46, Orlando) to one year and three months in federal prison for filing a materially false statement in an application to the Federal Emergency Management Agency (FEMA) for disaster relief benefits.
A federal jury convicted Davis on December 18, 2018.
According to the evidence presented at trial, in September 2017, Davis attempted to obtain FEMA benefits following Hurricane Irma. She did so by falsely claiming that she resided in a particular apartment in Orlando. In addition, Davis broke into the apartment to make it appear that she lived there for purposes of a FEMA inspection.
This case was investigated by the U.S. Department of Homeland Security – Office of the Inspector General. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.
Erie Man Sentenced to Nearly 7 Years in Federal Prison for Violating Laws Relating to the Sexual Exploitation of ChildrenRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to six years and ten months in prison and ordered to make restitution in the amount of $1,000 on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Nathan Richard Kosmatine, 31.
According to information presented to the court, Kosmatine distributed, received and possessed computer images and movies depicting prepubescent minors, including infants and toddlers, engaging in sexually explicit conduct.
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.justice.gov/psc.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Kosmatine.
Ellwood City Man Admits He Trafficked CocaineRead the Press Release
PITTSBURGH - A resident of Ellwood City, Pennsylvania pleaded guilty in federal court to a charge of distribution and possession with intent to distribute cocaine, United States Attorney Scott W. Brady announced today.
Jeffrey Vitale, 29, of Ellwood City pleaded guilty to one count before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that on or about February 16, 2018, Vitale distributed and possessed with intent to distribute a quantity of cocaine, a Schedule II controlled substance.
Judge Schwab scheduled sentencing for June 17, 2019 at 10:00 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine not to exceed $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the prosecution of Vitale. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lawrence County Drug Task Force, Pennsylvania Office of Attorney General, Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. 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.
Duquesne Felon Illegally Possessed a Pistol and AmmunitionRead the Press Release
PITTSBURGH – An Allegheny County resident pleaded guilty in federal court to violating federal firearms laws, United States Attorney Scott W. Brady announced today.
Dontez Peoples, 27, Duquesne, Pennsylvania pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that on or about May 2, 2018, Peoples possessed a loaded 9mm caliber Glock pistol and ammunition. It is unlawful for Peoples, who has previously been convicted of a crime punishable by a term of imprisonment exceeding one year, to possess a firearm or ammunition.
Judge Fischer scheduled sentencing for July 25, 2019 at 11:30 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Munhall Police Department, and the Allegheny County Police Department conducted the investigation leading to the prosecution of Peoples.. This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Convicted Felon Sentenced to Prison for Firearms ConspiracyRead the Press Release
NORFOLK, Va. – A Franklin man was sentenced today to more than seven years in prison for his role in a conspiracy to straw-purchase firearms.
According to court documents, Khary Deshun Smith, 25, and several co-defendants were members of a conspiracy that straw-purchased at least seven firearms from federally licensed firearms dealers in Franklin.
Smith, who was prohibited from possessing firearms due to earlier federal felony convictions, illegally purchased a firearm with the assistance of his co-defendant, Larry Parrish, who straw-purchased the firearm from a federally licensed gun store. In another instance, Smith stole a firearm from his girlfriend, loaded it with an extended magazine, and used it in a firefight with enemy gang members. When law enforcement executed the arrest warrant issued in this case, they discovered a third firearm tucked under a chair cushion in Smith’s living room within arms’ reach of minors.
This case is part of Project Safe Neighborhoods (PSN), which 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk; and Robert Porti, Deputy Chief of the City of Franklin Police Department, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney William B. Jackson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-150-2.
Columbia Man Charged with Arson at Planned Parenthood ClinicRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man was charged in federal court today with the arson at the Columbia Health Center (operated by Planned Parenthood Great Plains) on Feb. 10, 2019.
Wesley Brian Kaster, 42, was charged in a criminal complaint filed in the U.S. District Court in Jefferson City, Mo., with one count of maliciously damaging a building, owned by an organization the receives federal financial assistance, by means of fire or an explosive. Kaster, who was arrested on Saturday, March 2, 2019, remains in federal custody pending a detention hearing on Thursday, March 7, 2019.
According to an affidavit filed in support of today’s federal criminal complaint, surveillance video from Planned Parenthood and from neighboring businesses recorded Kaster in the early morning hours of Feb. 10, 2019. He parked his Toyota Sienna minivan (missing the right front passenger-side hubcap) nearby at about 2:30 a.m. and carried a seemingly heavy white bucket to the north exterior door of the Planned Parenthood building. Kaster broke the front door, the affidavit says, placed the bucket inside the building, and threw a Molotov cocktail-type device inside the building. Kaster remained standing on the sidewalk outside the door, watching the inside of the building. Kaster then allegedly entered the building through the broken door. No explosion or fire was visible at this time.
At approximately 2:52 a.m., the affidavit says, two unidentified pedestrians approached and Kaster fled east across Providence Road. Kaster walked to where his vehicle was parked and drove away. At this time, there was no discernable smoke or active fire at the Planned Parenthood building.
Kaster returned at about 4 a.m., according to the affidavit. Surveillance video recorded Kaster walking to the Planned Parenthood door with what the affidavit describes as “an undiscernible item in his left hand.” At 4:03 a.m., smoke is visible billowing from the broken glass door of the Planned Parenthood building. Kaster fled north along the west side of Providence Road, and west along 4th Avenue, out of view.
The Columbia Fire Department received the fire alarm at the Planned Parenthood building at approximately 4:05 a.m. Firefighters observed that the north exterior door of the building, which was constructed of glass inside a frame, had been shattered and an accelerant fueled the fire that was set inside. The fire was fully extinguished by a fire sprinkler system before firefighters arrived, and only moderate fire damage was observed to the room and its contents. Among the evidence collected at the scene by investigators were two five-gallon buckets that had contained gasoline, one inside of the other, found lying on the floor just inside the broken doorway. Investigators also recovered the remains of a Molotov cocktail.
Investigators identified 55 Toyota Sienna minivans registered by Columbia residents, one of which was registered by Kaster. Investigators also received records from Lowe’s for a list of all recent purchases of five-gallon buckets from area stores in 2019, which included a purchase by Kaster. Surveillance videos related to that purchase, according to the affidavit, clearly captured Kaster’s face and physical features.
Investigators contacted Kaster’s employer, a light manufacturing business in Jefferson City, where he works as a floor supervisor in the welding shop. According to the affidavit, Kaster had acquired a pair of Ansell HyFlex gloves, which are cut and abrasion resistant, which were the same make, model, color and size gloves recovered from the Planned Parenthood building.
Investigators searched social media accounts connected to Kaster. On Oct. 25, 2015, a picture was posted to the Facebook page of Kaster’s wife depicting a handgun and the words, “Guns Don’t Kill People, Planned Parenthood Kills People.”
Multiple federal search warrants were executed on Saturday, March 2, 2019. Investigators searched Kaster’s minivan a few minutes after he left his workplace that morning and took Kaster to obtain hair specimens. Investigators searched Kaster’s residence, the affidavit says, where numerous items of evidence were collected that definitively tied Kaster to the crime scene at Planned Parenthood. Based on these facts, Kaster was arrested at 11:07 a.m.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the FBI.
City of Fort Lauderdale Department of Parks and Recreation Employee Sentenced to Fifteen Month in PrisonRead the Press Release
On March 1, 2019, two individuals, including a City of Fort Lauderdale Parks and Recreation Department employee, were sentenced by U.S. District Judge Beth Bloom in Miami.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Rick Maglione, Chief, Fort Lauderdale Police Department (FLPD), made the announcement.
Phillip Richard Peterson, 42, of Coral Springs, Florida, pled guilty on December 19, 2018, to five counts of theft from a program receiving federal funds and conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 666, 1343 and 1349. Each theft count covers a single year, beginning in 2013 and running through 2017. Peterson was sentenced to 15 months’ imprisonment on each count, to be served concurrently, and three years of supervised release after the termination of his prison term. Peterson was also ordered to pay $119,982.69 in restitution to the City of Fort Lauderdale. Gino Joseph Ferraro, age 49, of Fort Lauderdale, Florida, also pled guilty on December 19, 2018, to one count of conspiracy to commit wire fraud. He was sentenced to five years of probation, a $2,000 fine, and ordered to complete 200 hours of community service. Ferraro was also ordered to pay $24,337 in restitution to the City of Fort Lauderdale.
According to the court record, including the defendants’ admissions as part of their pleas, Peterson had been issued a credit card by the City of Fort Lauderdale in connection with his employment to allow him to make job related purchases, on behalf of the Department of Parks and Recreation. Peterson admitted he would purchase items using his City of Fort Lauderdale credit card, and then sell the items to a local pawn store. Each year, between 2013 and 2017, Peterson sold more than $5,000 worth of merchandise in this manner.
Peterson and Ferraro were both sentenced on one count of conspiracy to commit wire fraud. Both Peterson and Ferraro unjustly enriched themselves by charging the City of Fort Lauderdale Parks and Recreation Department for volleyball court repairs and other items that were not completed or provided. Ferraro admitted that Peterson had paid him using his City issued credit card, and he would give Peterson approximately half of the amount that had been charged.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and FLPD in this matter. This case was prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
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.
California Woman Sentenced to 2 Years in Federal Prison After Making Bomb Threat to Myrtle Beach International AirportRead the Press Release
Florence, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Michelle Bryant, age 47, of Mission Viejo, California, was sentenced in federal court after pleading guilty to three counts of Intentionally Conveying False and Misleading Information. The information concerned several false claims of explosive devices placed at the Myrtle Beach International Airport (MBIA). Chief United States District Judge R. Bryan Harwell of Florence sentenced Bryant to 24 months in federal prison, to be followed by 3 years of court-ordered supervision. There is no parole in the federal system.
Bryant was also ordered to pay the Horry County Airport Authority $12,822.40 in restitution to reimburse the MBIA for their purchase of a full-time bomb detection dog and a trained handler. Law enforcement acquired these assets to deal with this case and to protect future visitors to MBIA.
Evidence presented to the court established that from March through August 2017, Bryant placed five telephonic bomb threats to the MBIA. Investigators obtained records from an international telecommunications company and interviewed a multitude of individuals to narrow the field of potential suspects. In February 2018, the FBI identified Bryant as a potential suspect and interviewed her at her residence in California. Once confronted, she admitted to placing the series of telephone calls, each one falsely claiming a different attack was about to occur. She told investigators the motive for the hoaxes was revenge for a failed relationship with an individual who had ties to the airport.
The case was investigated by the Federal Bureau of Investigation with the assistance of the Myrtle Beach Police Department, the Horry County Police Department, and the Los Angeles County Sheriff’s Office. Special Assistant United States Attorney and Chief Deputy Solicitor Scott Hixson of the 15th Circuit Solicitor’s Office prosecuted the case.
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California Man Sentenced for Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – A Compton, Calif., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine through the mail.
Shadeed Seifullah Muhammad, 42, was sentenced by U.S. District Judge Stephen R. Bough to 11 years and three months in federal prison without parole.
On Sept. 10, 2018, Muhammad pleaded guilty to participating in a conspiracy to distribute methamphetamine from April 4, 2016, to April 4, 2017.
On March 9, 2016, Muhammad mailed a U.S. Priority Mail package from the state of California to an address in Jefferson City, Mo. The package, which had been tracked by Muhammad and co-conspirator Javiar Rosser, 32, of Jefferson City, was seized by law enforcement and sent to the U.S. Postal Inspection Service Laboratory; it was determined that the substance contained approximately 894 grams of pure methamphetamine.
Muhammad mailed a U.S. Priority Mail Package from the state of California on April 4, 2016, to a residence in Columbia, Mo. The package was intended for Rosser. James Alexander Larkins, 39, of Columbia, accepted delivery of the package, and Robert Istill McNair, 32, of Jefferson City, transported the package and was en route to Jefferson City when officers made a traffic stop. The package was seized and sent to the U.S. Postal Inspection Service Laboratory; it was determined that the substance contained approximately 810 grams of pure methamphetamine.
On March 30, 2017, Muhammad mailed another package from a post office in the state of California that was addressed to a residence at Lincoln University in Jefferson City. It was also intended for Rosser. The package was accepted by an unknowing Lincoln student at the request of fellow student Bria Royale Lanier-Richie, 24, of Jefferson City. Lanier-Richie intended to give the package to Rosser. The package was seized by law enforcement and was also sent to the U.S. Postal Inspection Service Laboratory; it was determined that the substance contained approximately 856 grams of pure methamphetamine.
Co-conspirators McNair, Rosser, Lanier-Richie and Larkins have pleaded guilty to their roles in the drug-trafficking conspiracy and await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Drug Enforcement Administration, the FBI and the U.S. Postal Inspection Service.Bloomfield Man Sentenced to Federal Prison for Possessing Loaded Handgun in HartfordRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ISIAH SHIPMAN, 29, of Bloomfield, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 20 months of imprisonment, followed by three years of supervised release, for illegally possessing a loaded handgun.
According to court documents and statements made in court, on April 14, 2018, Shipman ran from Hartford Police officers who had responded to a report of a street fight in the area of Essex Street and Maple Avenue. After officers apprehended Shipman, a search of his person revealed a loaded Smith and Wesson .40 caliber handgun. The firearm had been reported stolen in Hartford in August 2016.
Shipman’s criminal history includes state felony convictions for reckless endangerment, narcotics and assault offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On December 10, 2018, Shipman pleaded guilty to one count of possession of a firearm and ammunition by a convicted felon.
Shipman, who is released on a $100,000 bond, was ordered to report to prison on May 12, 2019.
This case was investigated by the Hartford Police Department and the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force. The case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
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 neighborhoods safer for everyone.
Bill of Information Filed Against Tax Preparer for Fraudulent Tax ReturnsRead the Press Release
NEW ORLEANS, LOUISIANA – DANA ALVAREZ, age 49, a resident of Holden, Louisiana, was charged Friday, March 1, 2019 in a one count bill of information for conspiracy to defraud the United States with regard to tax returns announced U.S. Attorney Peter G. Strasser.
According to court documents, ALVAREZ worked for Crown Tax Service, LLC, located in Kenner, Louisiana. ALVAREZ and others conspired to defraud the United States by fraudulently minimizing tax liability and fraudulently inflating tax refunds claimed on the tax returns of Crown Tax Service’s clients, and for personal enrichment.
If convicted, the defendant faces 5 years of imprisonment as to Count 1, and a possible $250,000 fine.
U.S. Attorney Strasser praised the work of the Internal Revenue Service, Criminal Investigations Division for its work in investigating this case. U.S. Attorney Strasser reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case is being prosecuted by Trial Attorney Lauren Castaldi, Department of Justice Tax Division, and Assistant U.S. Attorney G. Dall Kammer, Supervisor, General Crimes.
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Bellevue Man Admits Possessing Child PornographyRead the Press Release
PITTSBURGH, PA - An Allegheny County resident pleaded guilty in federal court to possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Christopher Morrison, 26, of Bellevue, Pennsylvania, pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that on June 20, 2018, Morrison possessed images depicting the sexual exploitation of minors, some of whom were under the age of 12 years.
Judge Schwab scheduled sentencing for July 1, 2019, at 9 a.m. The law provides for a maximum sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Morrison remains on bond pending sentencing.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Adams Township Police Department conducted the investigation that led to the prosecution of Morrison.
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.justice.gov/psc.
An information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Armed Career Criminal Found Guilty of Possessing A FirearmRead the Press Release
Jacksonville, Florida – A federal jury has found Jamaal Abu Talib Hameen (58, Jacksonvile) guilty of being a felon in possession of a firearm. Hameen, who qualifies as an Armed Career Criminal, faces a mandatory minimum sentence of 15 years, and up to life, in federal prison. His sentencing hearing is scheduled for June 3, 2019.
Hameen was indicted on July 18, 2018.
According to testimony presented at trial, on February 7, 2018, Hameen was found to be in possession of a loaded .380 caliber pistol when Jacksonville Sheriff’s Officers arrested him for trespassing at a local motel. As a previously convicted felon, Hameen is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorneys David B. Mesrobian and Frank Talbot.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Sunday 3 March 2019
Wilmington Woman Imprisoned for Preparing False Tax ReturnsRead the Press Release
WILMINGTON, Del. – A Wilmington woman was sentenced today to one year and a day in prison followed by one year of supervised release for preparing false tax returns.
According to court documents, Rose M. Lyons, age 53, prepared at least 95 false tax returns for herself and 41 clients. For some 32 of those clients, Lyons diverted a portion of their tax refund into her own private bank account. When her clients asked for copies of their tax documents, Lyons doctored those documents in order to conceal the fact that she diverted funds.
U.S. Attorney Weiss stated, “Criminal conduct that deceives the Internal Revenue Service is conduct that also deceives all American taxpayers. Today’s sentence should serve as a deterrent to would-be tax cheats that defrauding the public will not be tolerated.”
Tax return preparers have a duty to their clients to prepare tax returns that comply with the law and are accurate,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. “Rose Lyons ignored this duty, and instead chose to defraud the government, the tax-paying public, and her own clients. It is our hope that this sentence sends a strong message that tampering with the integrity of our nation's tax system will result in jail time."
David C. Weiss, U.S. Attorney for the District of Delaware, made the announcement after sentencing by U.S. District Judge Richard G. Andrews. Assistant U.S. Attorney Graham L. Robinson prosecuted the case.
Rhode Island Man Charged with the Kidnapping of Jassy CorreiaRead the Press Release
BOSTON – Louis Coleman III has been charged today in federal court in Boston with the kidnapping of Jassy Correia, who had been missing since Feb. 24, 2019.
Coleman, 32, of Providence, R.I., has been charged with one count of kidnapping, resulting in death. Coleman was arrested on Thursday, Feb. 28, 2019, in Delaware and will appear in federal court in Delaware on Monday, March 4 at a time to be determined. He will be transferred to Massachusetts at a later date.
According to the charging document, after learning of the disappearance of Correia, law enforcement reviewed surveillance tape from outside of the Venu nightclub, the last place Correia had been seen by her friends, which showed Correia leaving the area and entering a vehicle with a man later identified as Coleman. Surveillance footage from Coleman’s Providence, R.I., apartment building showed Coleman, at about 4:15 a.m. on Sunday, Feb. 24, 2019, parking and exiting the vehicle, and then returning a short time later carrying a blanket. He then walked from the car to the front of the building carrying a body with long hair and clothing consistent with the description of Ms. Correia. Once he entered the building, surveillance video showed Coleman dropping the victim on the floor and dragging her towards the elevator, and subsequently towards his apartment unit. The victim was not moving and her body was limp.
It is alleged that on Feb. 26, 2019, surveillance video from the defendant’s apartment building showed Coleman enter the apartment building with Walmart shopping bags. Law enforcement subsequently obtained video surveillance and a receipt from a Walmart in Providence, R.I., that revealed Coleman had purchased three Tyvek suits, duct tape, two candles, electrical tape, one mask, surgical gloves, two pairs of safety goggles, an odor respirator and CLN release bleach bath.
At approximately 9:58 p.m. on Feb. 27, 2019, Coleman is seen on video surveillance entering the apartment building with what appeared to be a new, large suitcase. At 1:15 a.m., on Feb. 28, 2019, Coleman is seen in the video wheeling the suitcase away from his apartment unit towards the elevator, eventually out of the building and into the parking lot where his vehicle was. Coleman appeared to have difficulty lifting the suitcase into the trunk of his car.
Additional surveillance video showed Coleman on several occasions exiting his apartment building with other items, including trash bags, cardboard boxes, a bottle of bleach, a laptop case, a computer tower and a small duffle bag.
Later in the day on Feb. 28, 2019, a search warrant was executed at Coleman’s apartment, where two packages of hooded coveralls and two respirator masks were recovered. A sofa with four large cushions, one of which was missing a cover, was also observed. In a dumpster outside of the apartment complex, white trash bags, a bag containing plastic sheets, men’s jeans with bleach stains and a belt, a white nylon hooded coverall, an empty box of baking soda, clear safety goggles, a respirator mask, duct tape packaging, rubbing alcohol, Walmart bags, used plastic gloves, an empty package from a car air freshener, three empty packages of purifying charcoal and a sponge were recovered.
On the afternoon of Feb. 28, 2019, Coleman’s vehicle was stopped by Delaware authorities on I-95 South near Wilmington, Delaware. Officers ordered Coleman out of the vehicle and asked him if anyone else was in the vehicle with him. It is alleged that Coleman stated words to the effect: “She’s in the trunk.”
Officers discovered the victim’s body in the trunk of Coleman’s vehicle, wrapped in a sofa cushion cover, which was inside of a black trash bag, inside of a large suitcase that matches the suitcase Coleman was observed bringing into his apartment on Feb. 27, 2019. The victim had significant bruising, a bloodied face, was bound with gray duct tape, and was covered in what is believed to be baking soda.
A duffle bag, a pair of new long-handled loppers, plastic garbage bags, clothing, a red plastic gas container, a green butane lighter, black gloves, charcoal air purifiers, air fresheners, tinted safety glasses, plastic Walmart bags, work towels, cloth work-gloves, a new set of DeWalt pliers, a laptop, a computer hard-drive/tower, and disinfectant wipes were also recovered in Coleman’s vehicle.
It is further alleged that photographs of the defendant’s vehicle depict a windshield that is cracked in two locations on the passenger side and a white substance, believed to be baking soda, in the trunk of the vehicle.
Coleman was taken into custody and transported to a Delaware State Police barracks. There, it was noted that Coleman had a large bandage on the right side of his face. When asked about it, he allegedly replied, “It’s from the girl.”
The charge of kidnapping resulting in death provides for a sentence of death or life in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Boston Police Commissioner William G. Gross; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; John Gibbons, U.S. Marshal for the District of Massachusetts; Suffolk County District Attorney Rachael Rollins; Colonel Nathaniel McQueen Jr., Delaware State Police; and Colonel Hugh T. Clements Jr., Chief of Police, Providence Police Department, made the announcement today. The U.S. Attorney’s Office would also like to acknowledge the cooperation and assistance of Rhode Island Attorney General Peter F. Neronha; United States Attorney David C. Weiss, District of Delaware; and the Massachusetts State Police. Assistant U.S. Attorneys Kenneth G. Shine and Robert Richardson of Lelling’s Major Crimes Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Friday 1 March 2019
Youngstown man charged with drug and firearms crimesRead the Press Release
A federal grand jury returned a five-count indictment charging a Youngstown man with drug and firearms crimes.
Chad A. Little, 34, was charged with maintaining a drug-involved premises, possession with intent to distribute crack cocaine, heroin and fentanyl, possession of a firearm in furtherance of drug trafficking and being felon in possession of a firearm and ammunition.
The Youngstown Police Department executed a search warrant on Little’s residence on East Philadelphia Street on November 7, 2018. They found heroin, crack cocain, fentanyl and a gun in various locations inside and outside of the house, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique
to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by members of the Drug Enforcement Administration, the Youngstown Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Wisconsin Man Sentenced for Threatening Jewish Community CenterRead the Press Release
Chadwick Grubbs, 33, was sentenced yesterday by United States District Judge Pamela Pepper to 36 months in prison for charges related to threatening letters he wrote on three separate dates in May 2018 to the Harry and Rose Samson Family Jewish Community Center (JCC) in Whitefish Bay, Wisconsin. Assistant Attorney General Eric Dreiband for the Civil Rights Division, U.S. Attorney Matthew D. Krueger for the Eastern District of Wisconsin, and Acting Special Agent in Charge Michelle Sutphin of the FBI’s Milwaukee Division made the announcement.
“All people have the right to practice their religious beliefs without fear of threats or violence,” said Assistant Attorney General Eric Dreiband. “Mr. Grubbs’ anti-Semitic actions have no place in our society today and the Department of Justice will continue to prosecute anyone who threatens to harm a community because of their faith.”
“The Department of Justice’s commitment to civil rights includes protecting faith communities from threats of violence,” said United States Attorney Matthew D. Krueger for the Eastern District of Wisconsin. “This prosecution should send a clear message that hate crimes like Mr. Grubb’s vile threats will not be tolerated.”
“It is every American’s right to exercise the religion of their choice. The FBI will vigorously pursue those who target faith based communities with threats of violence and intimidation, violators will face justice,” said Acting Special Agent in Charge Michelle Sutphin of the FBI’s Milwaukee Division.
Grubbs pleaded guilty in November 2018 to two counts of mailing threatening communications and one count of threatening to injure and destroy property by fire and an explosive. Information presented during the plea hearing established that Grubbs sent three letters to the JCC in which he threatened to use firearms to cause “maximum carnage” and explosives to destroy the JCC. Grubbs used numbers and symbols associated with white supremacist ideology in the letters.
The FBI led the investigation. Assistant United States Attorney Gregory Haanstad of the U.S. Attorney’s Office for the Eastern District of Wisconsin and Trial Attorney Kathryn Gilbert of the Justice Department’s Civil Rights Division prosecuted this case.
For more information about the Department of Justice’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals.
Wilmington Drug Trafficker Brian Wilson Sentenced to 21 Years in Federal PrisonRead the Press Release
WILMINGTON, Del. – A Wilmington drug trafficker was sentenced on Tuesday, February 26, 2019, to 21 years in prison for conspiring to distribute cocaine and heroin in Delaware. According to court documents, Brian Wilson, 39, was the leader of an extensive network of illegal drug dealers operating in and around the City of Wilmington.
Wilson’s conviction is the result of a long-term New Castle County High Intensity Drug Trafficking Area (“HIDTA”) investigation spearheaded by the FBI Delaware Violent Crime Safe Streets Taskforce. Investigators seized four firearms, over five kilograms of cocaine, and roughly 150 grams of heroin as part of the case. At sentencing, United States District Court Chief Judge Leonard P. Stark recognized that Wilson’s criminal conspiracy included acts of violence and witness intimidation. Wilson’s sentence was enhanced because he intimidated witnesses through third parties.
Evidence presented at Wilson’s trial and at sentencing showed that Wilson directed co-defendant Thomas Brooks and others to sell heroin and cocaine on a daily basis. Evidence also demonstrated that Wilson conspired with others, such as Kenneth Flowers, to stash his drugs at secret locations. As a result, at sentencing the Court found that Wilson shared responsibility for a drug stash house robbery on November 3, 2016, during which three people broke into Thomas Brooks’ residence, gunfire was exchanged, and one person was shot. Wilmington Police Department responded and located a handgun, approximately 123 grams of cocaine and approximately 14 grams of heroin in the home.
Flowers was sentenced last month to 32 months in prison for storing 4.6 kilograms of cocaine in his home for Wilson. Brooks was sentenced to 15 years imprisonment last year.
U.S. Attorney Weiss stated, “This sentence demonstrates that leaders of drug trafficking organizations will be held accountable for the damage they do to our community. We will continue to work with our federal partners and the Wilmington Police Department to identify, investigate, arrest, and convict criminals like Brian Wilson.
“I applaud the efforts of the Wilmington Police Department’s Drug, Organized Crime and Vice Division and the Criminal Investigations Division in working with our local law enforcement partners as well as with the FBI, ATF and US Marshals Service,” said Wilmington Police Chief Robert J. Tracy. “The result of this investigation is a prime example of how our collaborations bring criminals to justice and address issues that can impact the quality of life of our residents.”
David C. Weiss, U.S. Attorney for the District of Delaware, made the announcement after sentencing by Chief U.S. District Court Judge Leonard P. Stark. Special Assistant U.S. Attorney Christopher L. de Barrena-Sarobe and Assistant United States Attorney Alexander S. Mackler prosecuted the case. The FBI Delaware Violent Crime Safe Streets Taskforce is a part of the New Castle County HIDTA, comprised of the Delaware State Police, Delaware Department of Probation and Parole, New Castle County Police Department, University of Delaware Police Department, and Wilmington Police Department. The FBI was assisted in this case by Wilmington Police Department and the Delaware Attorney General’s Office.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District of Delaware for the District of Delaware or on PACER by searching for Case No. 1:16-cr-00093.
West Palm Beach Investment Advisor Ordered to Pay over $1 Million in Restitution for Fraud SchemeRead the Press Release
On February 26, 2019, a West Palm Beach, Florida, investment advisor was ordered to pay over $1 million in restitution for his involvement in a pension trust fraud scheme.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA), made the announcement.
William H. Minor, of West Palm, pleaded guilty in September 2018 to one count of mail fraud (Case No. 18-80152-Cr-Middlebrooks). On November 29, 2018, he was sentenced to 41 months in prison, three years of supervised release. On February 26, 2019, U.S. District Judge entered an Order, requiring Minor to pay $1,636,604 in restitution.
According to the court record, Minor was the operator of Multi Financial Insurance Corp., a provider of investment advice and administrative services for pension plans. Starting in 1991 and continuing until June 2016, Minor transferred approximately $2 million from the Rehabilitation Center for Children & Adults Inc. Pension Trust to accounts he controlled.
The Rehabilitation Center for Children & Adults Inc., a Palm Beach nonprofit rehabilitation center that provides outpatient physical, occupational, and speech therapy to children and adults, sponsored the plan. Minor served as a volunteer member of the center’s board of governors.
In October 1991, Minor moved plan assets to Transamerica Life Insurance and Annuity Co., for which he registered as an insurance agent. Minor falsely represented to the rehabilitation center and plan trustees that Multi Financial would work in partnership with Transamerica Life to administer the plan, even though Transamerica had no partnership with Minor, and did not provide any administrative or record keeping services for the plan. As a result, Minor was able to exercise control of the plan.
Minor used that authority to direct one plan trustee to endorse benefit checks from Transamerica to Multi Financial, with the understanding that Minor would then issue payments to specified plan participants. In other instances, Minor forged the trustee’s name on the checks. Later in the scheme, Minor opened a bank account in the name of “Trustee for the Rehabilitation.” Since the checks were payable to the Trustee for the Rehabilitation, Minor could directly deposit the checks into this account without the endorsement of the plan trustee.
Minor made at least 63 fraudulent requests to Transamerica for lump sum benefits checks for participants not entitled to plan benefits. Transamerica honored the requests and issued 63 checks payable to the Trustee for the Rehabilitation. Minor deposited the first 15 checks into the Multi Financial account and the remaining 48 checks into the Trustee for the Rehabilitation account. In total, he fraudulently transferred approximately $2 million from the plan’s Transamerica account to his own accounts, using the plan’s assets to benefit himself.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and DOL-EBSA in this matter. This case was prosecuted by Assistant U.S. Attorney Adrienne Rabinowitz.
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.
Wisconsin Man Sentenced for Threatening Jewish Community CenterRead the Press Release
United States Attorney Matthew D. Krueger has announced Chadwick Grubbs, 33 was sentenced today by United States District Judge Pamela Pepper to 36 months in prison for charges related to threatening letters he wrote on three separate dates in May 2018 to the Harry and Rose Samson Family Jewish Community Center (JCC) in Whitefish Bay, Wisconsin. Assistant Attorney General Eric Dreiband for the Civil Rights Division, U.S. Attorney Matthew D. Krueger for the Eastern District of Wisconsin, and Acting Special Agent in Charge Michelle Sutphin of the FBI’s Milwaukee Division made the announcement.
“All people have the right to practice their religious beliefs without fear of threats or violence,” said Assistant Attorney General Eric Dreiband. “Mr. Grubbs’ anti-Semitic actions have no place in our society today and the Department of Justice will continue to prosecute anyone who threatens to harm a community because of their faith.”
“The Department of Justice’s commitment to civil rights includes protecting faith communities from threats of violence,” said United States Attorney Matthew D. Krueger for the Eastern District of Wisconsin. “This prosecution should send a clear message that hate crimes like Mr. Grubb’s vile threats will not be tolerated.”
“It is every American’s right to exercise the religion of their choice. The FBI will vigorously pursue those who target faith based communities with threats of violence and intimidation, violators will face justice,” said Acting Special Agent in Charge Michelle Sutphin of the FBI’s Milwaukee Division.
Grubbs pleaded guilty in November 2018 to two counts of mailing threatening communications and one count of threatening to injure and destroy property by fire and an explosive. Information presented during the plea hearing established that Grubbs sent three letters to the JCC in which he threatened to use firearms to cause “maximum carnage” and explosives to destroy the JCC. Grubbs used numbers and symbols associated with white supremacist ideology in the letters.
The FBI led the investigation. Assistant United States Attorney Gregory Haanstad of the U.S. Attorney’s Office for the Eastern District of Wisconsin and Trial Attorney Kathryn Gilbert of the Justice Department’s Civil Rights Division prosecuted this case.
For more information about the Department of Justice’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals.
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Valley, Alabama Woman Sentenced to 46 Months in Prison for Stealing over $700,000 from Her Employer and Failing to Report Income on Her Tax ReturnsRead the Press Release
Montgomery, Alabama- A Valley, Alabama woman was sentenced today to 46 months in prison for embezzling from her employer and filing false tax returns, announced U.S. Attorney Louis V. Franklin, Sr., and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. There is no parole in the federal system.
According to court documents, from February 2007 through May 2014, Alita Baker Edeker, 49, embezzled $700,000 of her employer’s funds by diverting payments from clients of the company to debit and credit cards she controlled. Edeker made false entries in the company’s books and records in order to conceal her embezzlement. After embezzling the funds, Edeker willfully filed false tax returns for tax years 2011, 2012, and 2013 that did not report the money.
In addition to the term of imprisonment imposed, Edeker was ordered to serve three years of supervised release and to pay restitution in the amounts of $819,497.29 to her employer and $101,604 to the Internal Revenue Service (IRS).
United States Attorney Franklin and Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation and the Auburn Police Division, who investigated the case, and Assistant United States Attorney Ben Baxley and Trial Attorney Grace Albinson of the Tax Division, who prosecuted the case.
U.S. Attorney’s Office Reaches $260,000 Civil Settlement with HNTB, Inc.Read the Press Release
PHILADELPHIA - United States Attorney William M. McSwain announced today that the United States reached a $260,000 civil settlement with HNTB, Inc. concerning HNTB's alleged improper billing under a contract to provide catenary services (i.e., overhead electrical wires) with Amtrak.
HNTB provided services as part of the New Jersey High Speed Rail Improvement Program under Amtrak Architectural & Engineering Services Contract. The Contract required that HNTB bill actual labor and overhead rates for the employees working on this project. The United States contends that it has certain civil claims against HNTB arising from HNTB's billing under the Contract during the period December 5, 2012 through July 28, 2017. This conduct included HNTB overbilling Amtrak by not adjusting its overhead rates in subsequent contract years to match actual overhead rates. Instead, HNTB continued to bill overhead at a maximum rate listed in the Contract.
“Our Office is dedicated to helping Amtrak and our other federal partners maintain the integrity of their contracts,” said U. S. Attorney McSwain. “The excellent work of the Amtrak Office of Inspector General laid the groundwork for a fair and speedy resolution of this matter and reinforces the duty of contractors to ensure compliance with the terms of their federal contracts.”
“We remain committed to investigating any case where there are credible indicators of a contractor overbilling Amtrak,” said Tom Howard, Amtrak Inspector General. “This settlement is indicative of that commitment and was the result of hard work by dedicated staff coupled with seamless collaboration with the U.S. Attorney's Office.”
Amtrak's Office of Inspector General initiated an investigation after discovering discrepancies in HNTB's billing during a review of select Amtrak contracts. Assistant United States Attorney Colin Cherico and Auditor Dawn Wiggins supported the OIG's investigation and handled the settlement for the United States Attorney's Office for the Eastern District of Pennsylvania.
The claims settled by this settlement agreement are allegations only and there has been no determination of liability.
U.S. Attorney Broadcasts Call-To-Action, Asking Citizens to Report Criminal Activity to 1-800-CALL-FBIRead the Press Release
MACON— A new call to action in the fight to decrease violent crime in Middle and South Georgia was issued today with the release of a new Public Service Announcement (PSA) by the United States Attorney’s Office for the Middle District of Georgia. In the PSA, U.S. Attorney Charles “Charlie” Peeler, discusses the impact of Project Safe Neighborhoods (PSN), an evidence-based program proven to be effective at reducing violent crime by bringing law enforcement and community stakeholders together to tackle the problem. Mr. Peeler asks citizens to report criminal activity in their neighborhoods by calling 1-800-CALL-FBI. In recent years, violent crime rates have remained at or above the national average in some cities in the Middle District of Georgia. Violent crime statistics dropped in Albany and Columbus in 2018, indicating a measure of progress.
“This call to action is a critical next step in the fight to decrease violent crime in our communities,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “Law enforcement agencies often rely on tips from courageous citizens who are willing to step up and report dangerous activity. We deserve to raise our families in safe neighborhoods and live our lives without fear of harm. I promise that the United States Attorney’s Office, working with our dedicated law enforcement partners, will relentlessly pursue the most dangerous criminals menacing our society and put them behind bars.”
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. The new PSA can be viewed and shared on the U.S. Attorney for the Middle District of Georgia’s Facebook Page @usaomdga.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Two Sentenced to Prison for Marijuana ConspiracyRead the Press Release
Jackson, Miss. – Steven Davison, 32, from Houston, Texas, and Kendrick Applewhite, 44, of Bassfield, Mississippi, were sentenced today by Chief U.S. District Daniel P. Jordan III for their roles in a conspiracy to possess with the intent to distribute marijuana, announced U.S. Attorney Mike Hurst and Drug Enforcement Administration (DEA) Assistant Special Agent in Charge J. Derryle Smith.
Davison was sentenced to 100 months in federal prison, followed by 3 years of supervised release, and ordered to pay a fine of $1,500.00. Applewhite was sentenced to 21 months in federal prison, followed by 3 years of supervised release, and ordered to pay a fine of $1,500.00.
On March 24, 2013, DEA seized approximately 262 pounds of marijuana at the Pilot Travel Center located in Jackson, Mississippi, from Kendrick Applewhite and Steven Davison. During the course of the investigation, agents learned that Kevin Lawrence ordered the marijuana and coordinated the pickup of the marijuana with Applewhite and Davison. The three were indicted on December 13, 2017.
Davison and Applewhite pled guilty on September 20, 2018, to conspiracy to possess with intent to distribute marijuana.
On October 4, 2018, Lawrence was found guilty after a four-day trial of conspiring to possess with intent to distribute marijuana, possessing marijuana with intent to distribute, and using a communication facility to commit the offense. He will be sentenced at a later date to be determined by the Court.
This case was investigated by the DEA Jackson District Office, DEA Gulf Coast HIDTA and the Jackson Police Department. It was prosecuted by Assistant United States Attorneys Chris Wansley and John Meynardie.
Two Former St. Tammany Parish Sheriff’s Deputies Plead Guilty for their Roles in Kickback and Bribery Scheme Involving Contract for Privatization of Work Release Program in St. Tammany ParishRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DAVID HANSON, age 61, from Abita Springs, Louisiana, and CLIFFORD “SKIP” KEEN, age 50, from Covington, Louisiana, pleaded guilty Wednesday, February 27, 2019 before United States District Judge Ivan L.R. Lemelle to conspiracy to commit honest services wire fraud and soliciting a bribe, in violation of 18 U.S.C. '' 371, 1343, 1346, and 666(a)(1)(B), for their roles in the privatization of a work release program in Slidell, Louisiana that operated between 2013 and 2016.
According to court documents, HANSON and KEEN, each of whom worked most recently as Captains with the St. Tammany Parish Sheriff’s Office (STPSO) discussed with the then-Sheriff (“Public Official 1”) about becoming owners of a work release program in Slidell, Louisiana that Public Official 1 decided to privatize. The Sheriff of STPSO had authority, among other things, to enter into certain contracts binding STPSO, including professional service contracts, unilaterally. Because STPSO rules prohibited employees from “participating in a transaction in which he has a personal substantial economic interest of which he may be reasonably expected to know involving the governmental entity,” HANSON and KEEN would have had to resign from STPSO—thereby losing their salaries and future pension increases—if they wanted to assume ownership and control of the Slidell work release program. HANSON, KEEN, and Public Official 1 discussed ways to allow HANSON and KEEN to maintain their employment and still profit from the Slidell work release program. Ultimately, HANSON, KEEN, and Public Official 1 agreed to make KEEN’s adult son (Person 1) and HANSON’s adult daughter (Person 2) owners of the Slidell work release program.
HANSON, KEEN, and Public Official 1 agreed that they needed to find another individual actually to operate the Slidell work release program because Person 1 and Person 2 lacked sufficient education, training, experience, or funding. They decided on Person 3, to whom HANSON presented a series of conditions, including the following: Person 1 and Person 2 would each own forty-five (45) percent of the Slidell work release program and would each receive forty-five (45) percent of the profits, while Person 3 would own ten (10) percent, receive ten (10) percent of the profits, and receive a salary; and Person 3 would be responsible for the daily operations of the Slidell work release program. Person 3 was also responsible for providing the capital necessary to initiate the program. On about May 1, 2013, Person 1, Person 2, and Person 3 entered into an operating agreement that created St. Tammany Workforce Solutions, LLC, in which Person 1 and Person 2 each had a forty-five percent ownership interest and Person 3 had only a ten percent ownership interest.
On June 4, 2013, Public Official 1 entered into a cooperative endeavor agreement (“privatization agreement”) on behalf of STPSO with St. Tammany Workforce Solutions, LLC to operate the Slidell work release program. Although Person 1 and Person 2 acted effectively as passive members and did not participate substantially in the operation, oversight, or administration of the Slidell work release program, Person 3 was required to pay Person 1 and Person 2 salaries in addition to their ownership disbursements. Person 3 was also directed to pay Person 4, who was Public Official 1’s relative and an employee at STPSO, approximately $30,000 per year for a no-show job at the Slidell work release program.
During the time St. Tammany Workforce Solutions, LLC operated the Slidell work release program, Person 1 and Person 2 received not less than $1,195,000 from St. Tammany Workforce Solutions, LLC in the form of ownership disbursements, salary payments, and occasional lump sum miscellaneous payments. Person 1 received no fewer than 145 payments totaling over $550,000, and Person 2 received no fewer than 131 payments totaling over $600,000. Person 1 and Person 2 converted the majority of the money they received from St. Tammany Workforce Solutions, LLC to cash. At the request of KEEN and HANSON, Persons 1 and 2 then transferred a significant portion of the funds back to their fathers.
Additionally, HANSON, KEEN, and Public Official 1 understood that Public Official 1 would receive financial compensation from them in exchange for bestowing the right to operate the Slidell work release program on St. Tammany Workforce Solutions, LLC. HANSON and KEEN each gave Public Official 1 a portion of the payments they received from St. Tammany Workforce Solutions LLC, through Person 1 and Person 2, in cash payoffs in amounts greater than $1,000 on a recurring basis in exchange for Public Official 1 bestowing the right to operate the Slidell work release program on St. Tammany Workforce Solutions LLC. HANSON also arranged for Public Official 1’s son to receive a check in the amount of $4,000 because Public Official 1 gave the contract to operate the Slidell work release program to St. Tammany Workforce Solutions, LLC. HANSON, KEEN, Public Official 1, and others attempted to conceal the scheme by, among other things, not including in the privatization agreement the fact that Public Official 1 would receive financial compensation in exchange for bestowing the right to operate the Slidell work release program on St. Tammany Workforce Solutions LLC, communicating by cellular telephone, and providing most of the money to Public Official 1 in the form of cash.
HANSON and KEEN each face a maximum term of imprisonment of five years, a fine of up to $250,000.00, three years supervised release after imprisonment, and a mandatory $100 special assessment. Sentencing before Judge Lemelle has been scheduled for May 29, 2019.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division and thanks the Metropolitan Crime Commission for its assistance. Assistant United States Attorneys Jordan Ginsberg, Supervisor of the Public Corruption Unit, and Elizabeth Privitera, Supervisor of the Violent Crime Unit, are in charge of the prosecution.
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Traveling Bandit Charged in South FloridaRead the Press Release
A man accused of robbing banks around the country has been charged and is being detained in South Florida.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Jason Lee Robinson, 40, of Pikeville, Kentucky, has been charged by criminal complaint in the Southern District of Florida with bank robbery, in violation of Title 18, United States Code, 2113(a) (Case No. 19-mj-2082). He is currently being detained in South Florida. If convicted of a single count of bank robbery, Robinson faces a maximum statutory sentence of 20 years in prison.
According to the court record, allegations contained in the criminal complaint, Robinson robbed seven banks in states around the country. On December 28, 2018, Robinson robbed a Capital Bank in Aventura, Florida of approximately $1,900. On January 2, 2019, he robbed a SunTrust Bank in Asheville, North Carolina. On January 4, 2019, he robbed a Mountain Commerce Bank in Johnson City, Tennessee. On January 8, 2019, he robbed a U.S. Bank in Mount Juliet, Tennessee. On January 10, 2019, he robbed a Trustmark Bank in Prattville, Alabama. On January 14, 2019, he robbed a Fifth Third Bank in Mount Vernon, Illinois. On January 17, 2019, he robbed a Wells Fargo Bank in Price Branch, Utah.
The banks’ deposits were insured by the Federal Deposit Insurance Corporation.
A criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter. She thanked the FBI’s Field Offices, in Charlotte, North Carolina; Knoxville, Tennessee; Memphis, Tennessee; Mobile, Alabama; Springfield, Illinois; Salt Lake City, Utah; Denver, Colorado and Louisville, Kentucky, for their assistance. This case is being prosecuted by Assistant U.S. Attorney Lisa H. Miller in the Southern District of Florida.
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.
Syracuse Man Arrested for Threating to Kill Employees at the Syracuse Veterans Affairs HospitalRead the Press Release
SYRACUSE, NEW YORK – Mark W. Sweeney, age 60, of Syracuse, appeared today in U.S. District Court on charges that he threated to kill employees of the Syracuse Veterans Affairs Hospital, announced United States Attorney Grant C. Jaquith and Chief Thomas Martin, Department of Veterans Affairs Police, Syracuse.
The charge in the complaint filed against Sweeney carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
According to the Complaint, Sweeney called into a Veterans Crisis Line and made several threatening statements directed toward VA hospital staff, including that he intended to kill multiple people, and had a plan and the means to do so.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the Veterans Affairs Police Department and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
South American Couple Sentenced to Prison for Fraud ConspiracyRead the Press Release
ALEXANDRIA, Va. – A South American couple were each sentenced today to nearly two years in prison for conspiracy to commit wire and bank fraud.
According to court documents, Rodrigo Pardo, 46, of Argentina, and Lorena Medina, 46, of Ecuador, defrauded homeowners in Northern Virginia and mortgage lenders by promising the homeowners to assist them in obtaining loan modifications. As part of the scheme, Pardo and Medina agreed to negotiate with the homeowners’ lenders for a reduced monthly payment. Pardo and Medina then instructed clients who were current on their mortgages to stop making payments to their lenders as they had in the past, and instead make payments into accounts controlled by Medina, Pardo, or COFS, a company they controlled. At the same time, Pardo and Medina represented to their clients’ mortgage lenders that COFS was authorized to negotiate loan modifications, but concealed from the mortgage lenders that they were receiving mortgage payments from the victims. As a result, Pardo and Medina received over $140,000 in payments from their victims, which they used for personal expenses.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Robert Manchak, Acting Special Agent in Charge, Office of Inspector General for the Federal Housing Finance Agency, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorney Kimberly R. Pedersen and Special Assistant U.S. Attorney Charlie Divine prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-181.
Seffner Woman Sentenced to 33 Months in Prison for Her Role in Jamaican Lottery Fraud SchemeRead the Press Release
Tampa, FL –U.S. District Judge Elizabeth A. Kovachevich today sentenced Jennifer Samuels (47, Seffner) to 33 months in federal prison for conspiracy to commit mail fraud in connection with Samuels’s role as a middleman, or money mule, in a Jamaican lottery fraud scheme. As part of her sentence, the court also entered a money judgment of $209,800.13, the proceeds of the fraud.
Samuels had pleaded guilty on October 17, 2018.
According to court documents, Samuels and co-conspirators identified potential victims and contacted them by telephone, falsely claiming the individuals had won the lottery in Jamaica, but needed to pay money for taxes in order to receive the funds. If a potential victim agreed, Samuels’s co-conspirators directed the victim to send these fees to a middleman, who received the funds and distributed them to the conspirators. Samuels agreed to be one of these middlemen.
In May 2016, Samuels’s co-conspirators contacted an elderly victim residing in the Middle District of Florida and falsely told the victim that he had won $1.4 million and a Mercedes-Benz vehicle as part of a Jamaican lottery sweepstakes. A conspirator told the victim that in order to receive his lottery winnings, the victim would need to pay the taxes on the winnings upfront. Between May 2016 and May 2018, the victim sent 52 checks totaling $209,800.13 to Samuels, which the victim believed were to pay for the taxes associated with his lottery winnings.
Samuels deposited the victim’s checks into her bank accounts or cashed them. She then transferred the majority of the funds to her conspirators in Jamaica and Florida by cash delivery or wire transfer. Samuels also kept a portion of the funds for herself.
“Criminals who target older citizens in these schemes are heartless in their relentless pursuit of profit, at great cost to the elderly victims,” said HSI Tampa Special Agent in Charge James C. Spero. “While today’s sentencing highlights HSI’s role in stopping this crime, I strongly encourage anyone with elderly loved ones to familiarize themselves with these schemes and take steps to protect them from exploitation.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Pasco Sheriff’s Office. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
Richmond Man Sentenced to 135 Months for Trafficking in Methamphetamine and Firearms OffensesRead the Press Release
LEXINGTON, Ky. — Jon Norman Moren, 45, of Richmond, Kentucky, was sentenced yesterday to 135 months in federal prison, by Chief United States District Judge Karen K. Caldwell, for possession with the intent to distribute over 500 grams of methamphetamine and for being a felon in possession of a firearm. Judge Caldwell also ordered Moren to forfeit $2,245 in cash, two firearms, and 366 rounds of ammunition.
On September 21, 2016, a search warrant was executed at Moren’s residence in Lexington. Law enforcement agents seized more than a pound of methamphetamine, which Moren admitted that he intended to sell. Moren also possessed a pistol and rifle, after having previously been convicted of a state drug trafficking felony, as well as other state drug charges.
Under federal law, Moren must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowrey, Special Agent in Charge ATF; ; D. Christopher Evans, Special Agent in Charge, DEA; and Chief Lawrence Weathers, Lexington Police Department, jointly made the announcement.
The investigation was conducted by the ATF, DEA, and the Lexington Police Department. The United States was represented by Assistant United States Attorney Roger W. West.
Philadelphia Business Man Sentenced to Prison for Honest Services Fraud, Tax Crimes, and ConspiracyRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced today that James Davis, the former vendor who operated Sheriff sales for the Philadelphia Sheriff’s Office, was sentenced today to 121 months’ imprisonment, and ordered to pay $872,395.00 in restitution to the Internal Revenue Service and $1.718,540.00 in forfeiture. The sentence was imposed by United States District Judge Wendy Beetlestone.
In April 2018, after a six-week trial, a federal jury convicted Davis of conspiracy, honest services wire fraud, filing false federal tax returns for 2007, and willful failure to file federal tax returns for 2008, 2009, and 2010. The conspiracy and honest services fraud counts charged Davis with defrauding the citizens of Philadelphia of the honest services of the Sheriff of Philadelphia, John Green, from 2002 to 2011, by giving Green a hidden stream of personal benefits in exchange for Davis and his companies maintaining and receiving increased business and fees from the Sheriff’s Office.
The indictment charged Davis with (1) purchasing, renovating and selling a home to Green at a loss to Davis in 2002 and 2003, which was not reported on Green’s financial disclosure forms; (2) hiring and paying Green’s wife over $89,000 as a subcontractor from 2004 through 2010, which was not reported to the City; (3) facilitating over $65,000 in hidden campaign contributions to Green’s 2007 reelection campaign, which was not reported in Green’s campaign reports; (4) paying $148,000 in advertising for Green’s 2007 reelection campaign, which was not reported in Green’s campaign reports; and (5) giving Green, in 2010, $320,000 as gifts and interest-free loans to help Green purchase a retirement home in Florida. In exchange, Green helped Davis maintain and increase his business with the Sheriff’s Office.
“The citizens of Philadelphia are entitled to the honest services of their public servants, and James Davis’s actions deprived them of that from the Philadelphia Sheriff’s Office,” said U.S. Attorney McSwain. “Davis received millions of dollars of business from the Philadelphia Sheriff’s Office, having obtained nearly exclusive control over the operation of the Sheriff sales and receiving over $7 million in advertising fees for those sales. The sentence imposed today sends a powerful message to public servants and vendors who choose to do business by their own set of rules.”
“There's an old saying that you have to spend money to make money,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “Certainly, this is not the way to do it. James Davis brazenly bribed then-Sheriff Green in order to boost his businesses. This illicit quid pro quo deprived Philadelphians of the honest services they expect and deserve from those who hold elected office. The FBI is committed to fighting such corruption, which does real and lasting damage to the public trust.”
“James Davis willfully and intentionally violated his legal duty to file his tax returns and pay the correct amount of tax,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. "The courts have overwhelmingly and consistently shown that people who engage in such criminal behavior will be held accountable; as evidenced by the sentence handed down today.”
The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service, Criminal Investigation, and Office of Inspector General, City of Philadelphia, and is being prosecuted by Assistant United States Attorneys Sarah L. Grieb and Christopher Diviny and Department of Justice Trial Attorney Jennifer A. Clarke.
Philadelphia Business Man Sentenced to More Than 10 Years in Prison for Bribing the Former Sheriff of PhiladelphiaRead the Press Release
A Wyncote, Pennsylvania man was sentenced to 121 months in prison for participating in a bribery conspiracy involving the former Sheriff of Philadelphia.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney William M. McSwain of the Eastern District of Pennsylvania, Special Agent in Charge Michael T. Harpster of the FBI’s Philadelphia Division and Special Agent in Charge Guy Ficco of the IRS Criminal Investigation (IRS-CI) Philadelphia Field Office made the announcement.
James Davis, 68, the owner of multiple advertising and title firms, was sentenced by U.S. District Judge Wendy Beetlestone of the Eastern District of Pennsylvania, who also ordered Davis to pay $ 872,395.83 in restitution and to forfeit $1,718,540. On April 3, 2018, after a six-week jury trial, Davis was convicted of conspiracy, honest services fraud, and tax offenses.
“James Davis used his wealth to line the pockets of the former Sheriff of Philadelphia in a corrupt exchange for contracts and business,” said Assistant Attorney General Benczkowski. “Today’s sentence should deter both public officials and would-be bribe payers from engaging in corruption of any kind.”
“The citizens of Philadelphia are entitled to the honest services of their public servants, and James Davis’s actions deprived them of that from the Philadelphia Sheriff’s Office,” said U.S. Attorney McSwain. “Davis received millions of dollars of business from the Philadelphia Sheriff’s Office, having obtained nearly exclusive control over the operation of the Sheriff sales and receiving over $7 million in advertising fees for those sales. The sentence imposed today sends a powerful message to public servants and vendors who choose to do business by their own set of rules.”
“There’s an old saying that you have to spend money to make money,” said FBI Special Agent in Charge Harpster. “Certainly, this is not the way to do it. James Davis brazenly bought off then-Sheriff Green in order to boost his businesses. This illicit quid pro quo deprived Philadelphians of the honest services they expect and deserve from those who hold elected office. The FBI is committed to fighting such corruption, which does real and lasting damage to the public trust.”
“James Davis willfully and intentionally violated his legal duty to file his tax returns and pay the correct amount of tax,” said IRS-CI Special Agent in Charge Ficco. “The courts have overwhelmingly and consistently shown that people who engage in such criminal behavior will be held accountable; as evidenced by the sentence handed down today.”
According to the evidence presented at trial, Davis, in exchange for receiving, maintaining and increasing business with the Sheriff’s office, gave former Sheriff John Green bribes and personal benefits totaling over $675,000, including purchasing and renovating a home and selling the home at a loss to Green, hiring Green’s wife as a sub-contractor, facilitating over $65,000 in hidden campaign contributions to Green’s 2007 re-election campaign, paying $148,000 in campaign advertising for Green’s 2007 re-election campaign, and paying Green over $300,000 in gifts and interest-free loans. In exchange, the evidence presented at trial showed that Green helped Davis maintain and increase his business with the Sheriff’s Office, specifically, business involving sheriff’s sales of foreclosed property. From approximately 2002 through 2010, Davis’ companies received over $35 million from the Philadelphia Sheriff’s office from the sheriff’s sales business.
Additionally, the evidence presented at trial revealed that Davis also filed false 2007 business and personal tax returns, and failed to file personal tax returns for 2008, 2009, and 2010.
The FBI and IRS-CI investigated this case. Trial Attorney Jennifer A. Clarke of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Sarah L. Grieb and Christopher Diviny of the Eastern District of Pennsylvania are prosecuting the case.
Pennsylvania man indicted for making threats to shoot students at Parma High SchoolRead the Press Release
A Pennsylvania man was indicted in federal court after making threats to shoot students at Parma High School.
Russell D. Miley-Cruz, 21, of Scranton, was indicted on one count of transmission of an interstate threat and one count of obstruction of justice. He was arrested Friday.
Miley-Cruz communicated a threat on April 11, 2018 via Snapchat. The threat stated: “Don’t go to Parma High School tomorrow friend, we are about to shoot that (expletive) up alright man? Don’t tell cops and you will be fine,” according to the indictment.
Miley-Cruz, between April 11 and May 1, 2018, provided a false phone number to law enforcement, denied using a specific email address and Snapchat user name, and made other false statements for the purposes of hindering and delaying the law enforcement investigation into the threats made against Parma High School, according to the indictment.
“This defendant made threats that caused panic and led to hundreds of students missing classes at Parma High School,” U.S. Attorney Justin Herdman said. “This case is another reminder that making threats, online or in person, is always a bad idea.”
“Making threats to commit a school shooting are not taken lightly by law enforcement,” said FBI Special Agent in Charge Eric Smith. “This individual induced fear in school personnel, students and their parents at Parma High School and wasted valuable law enforcement resources, and then he lied about being involved. Miley-Cruz will now answer to federal charges in a court of law. #Thinkbeforeyoupost.”
Parma Police Chief Joseph Bobak said: "This individual caused fear and panic in our community by targeting and threatening school children. These threats affected students and staff at Parma High School for several days as frightened parents pulled their kids out of school. Parma Police detectives, working alongside special agents from the FBI, diligently pursued all available leads on this case culminating in today's arrest. I would like to thank the FBI for working together with our department to identify and arrest this individual. Without their assistance and resources, this outcome might not have been possible."
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Federal Bureau of Investigation and Parma Police Department. It is being prosecuted by Assistant U.S. Attorney Robert J. Patton.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Pair of Mexican Nationals Sentenced in Large Scale Cocaine Distribution ConspiracyRead the Press Release
Harrisonburg, VIRGINIA – A pair of Mexican nationals associated with one of the most dangerous drug cartels in Mexico were sentenced this week in U.S. District Court in Harrisonburg for illegally distributing large amounts of cocaine in and around the Winchester area, United States Attorney Thomas T. Cullen announced.
Blas Rodriguez-Avila, a.k.a. “Kiko” a.k.a. “Flaco,” 28, was sentenced Wednesday, February 27, 2019 to 156 months in prison. The defendant previously pleaded guilty to one count of conspiracy to distribute and to possess with the intent to distribute more than 500 grams of cocaine and one count of receiving and possessing a firearm while an alien illegally and unlawfully in the United States.
Hector Manuel Naal-Huchin, a.k.a. “Yuca,” 32, was sentenced Wednesday, February 27, 2019 to 130 months in prison. The defendant previously pleaded guilty to one count of conspiracy to distribute and to possess with the intent to distribute more than 500 grams of cocaine.
“These defendants were part of a drug cartel that is responsible for distributing thousands of grams of cocaine in the Shenandoah Valley,” United States Attorney Cullen stated today. “We are committed to working with our federal, state, and local partners throughout the region to dismantle these drug-trafficking organizations and send their members to federal prison.”
“DEA and our partners work hard every day to ensure the safety of our communities,” said DEA Special Agent in Charge Jesse R. Fong. “Following this case through to sentencing shows our commitment to hold accountable those who jeopardize the safety of our neighborhoods. We will continue to make it our priority to investigate and hold accountable these powerful cartels that have a callous disregard for the destruction they cause.”
“The Northwest Virginia (NWVA) Regional Drug and Gang Task Force is appreciative of its member agencies and our federal partners for their hard work and dedicated efforts put forth for this extensive, multi-state, transnational investigation,” said Special Agent Joshua Price, NWVA Regional Drug and Gang Task Force Coordinator. “Not only did these collaborative efforts cut off a significant supplier of cocaine to the City of Winchester and the Upper Shenandoah region, but also shut down an extremely violent drug network that stretched from coast to coast.”
According to evidence presented at court hearings by Assistant United States Attorney Erin M. Kulpa, Rodriguez-Avila and Naal-Huchin were both affiliated with the powerful drug cartel, Cartel Jalisco Nueva Generacion (CJNG). CJNG is one of the most powerful cartels in Mexico and the Department of Justice considers it to be one of the five most dangerous transnational criminal organizations in the world, responsible for trafficking many tons of cocaine, methamphetamine, and fentanyl-laced heroin into the United States, as well as for violence and significant loss of life in Mexico.
Between 2017 and 2018, Rodriguez-Avila traveled between California, Texas and Virginia to direct the transport of large quantities of cocaine into the Winchester area. Rodriguez-Avila served as a source of cocaine supply for dealers in the area, including Naal-Huchin, and employed several others to bring shipments of multiple kilograms of cocaine at a time into Winchester, paying them between $2,000 and $5,000 to drive vehicles with hidden compartments carrying up to 5 kilograms of cocaine from Texas to Virginia and from California to Virginia. In the fall of 2017, Rodriguez-Avila paid one of his drug couriers to act as a straw purchaser to obtain two semi-automatic rifles and a shotgun for him from a gun store in Winchester.
On February 1, 2018, law enforcement intercepted Rodriguez-Avila as he was bringing two drug couriers to the airport to fly from Washington, D.C. to California with instructions to drive cocaine back to Virginia. Rodriguez-Avila had given $12,000 in bulk cash to the drug couriers to smuggle to California. That same day, agents executed search warrants at the residences of Rodriguez-Avila and Naal-Huchin, where they found a kilogram of cocaine, cutting and packaging materials, a ledger of drug transactions, and an additional $4,500 in cash.
The investigation of the case was conducted by the Drug Enforcement Administration, the Northwest Virginia Regional Drug and Gang Task Force (NWVRDGTF), the Department of Homeland Security-Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation. Assistant United States Attorney Erin M. Kulpa prosecuted the case for the United States.
This investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force (OCDETF) Program. 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.
The NWVRDGTF uses the combined efforts of local, state, and federal agencies to actively pursue those groups or individuals who manufacture, distribute, or sell illegal narcotics. The NWVRDGTF is comprised of the Virginia State Police, the Winchester Police Department, the Front Royal Police Department, the Strasburg Police Department, the Frederick County Sheriff’s Office, the Page County Sheriff’s Office, the Warren County Sheriff’s Office, the Shenandoah County Sheriff’s Office, and the Clarke County Sheriff’s Office.
Organizer for Multiple Drug Cartels Sentenced to over 24 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Gabino Peralta-Saucedo (43, Bradenton) to 24 years and 4 months in federal prison for conspiracy to distribute five kilograms or more of cocaine and a quantity of heroin. Peralta-Saucedo had pleaded guilty on December 14, 2018.
According to court documents, for over a decade, Peralta-Saucedo coordinated the smuggling of thousands of kilograms of cocaine into the United States from Mexico. More than 12,000 kilograms of cocaine were ultimately sold in and around Manatee County on behalf of various Mexican drug cartels, including La Familia Michoacána and Los Caballeros Templarios. Peralta-Saucedo also cooperated with other Mexican drug cartels including, the Gulf Cartel and Los Zetas, in order to get drugs across the border into the United States. In addition, coconspirators possessed and distributed heroin in the Tampa Bay area.
This case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) program. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
This case was investigated by the Federal Bureau of Investigation and the Manatee County Sheriff’s Office. The Department of Justice’s Office of International Affairs and Attaché’s Office in Mexico City assisted with the extradition process. It was prosecuted by Assistant United States Attorney Christopher F. Murray.
Ocean County, New Jersey, Man Sentenced to 16 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
TRENTON, N.J. – A Point Pleasant, New Jersey, man was sentenced today to 16 years in prison for planning to construct and use a pressure cooker bomb in New York on behalf of the Islamic State of Iraq and al-Sham (ISIS), U.S. Attorney Craig Carpenito and Assistant Attorney General for National Security John C. Demers announced.
Gregory Lepsky, 22, pleaded guilty March 13, 2018, before U.S. District Court Judge Michael Shipp to an information charging him with one count of attempting to provide material support to a designated foreign terrorist organization, specifically ISIS. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On Feb. 21, 2017, Lepsky was arrested by the Point Pleasant Police Department in connection with an incident that occurred that day in his family’s home. Following the arrest, law enforcement officers searched the residence and found a new pressure cooker stored behind a roll of bubble wrap in Lepsky’s bedroom closet.
During searches of computers and other digital evidence linked to Lepsky, law enforcement officers found evidence of Lepsky’s plan to build and detonate a bomb as part of his support for ISIS. During several social media communications, Lepsky told others that he intended to fight on behalf of ISIS and that he would, if necessary, become a martyr by driving a “bunch of explosives” to where the “enemies” could be found and blowing himself up.
Law enforcement officers also located a series of instructions that had been published online by another terrorist group that gave specific, step-by-step instructions on how to build a pressure cooker bomb, which coincided with the delivery of the pressure cooker to Lepsky a short time before his arrest. In addition, law enforcement officers recovered a message forwarded by Lepsky from another ISIS supporter stating that if a westerner could not travel to Syria to fight for ISIS, he could conduct a terrorist attack in his home country using improvised explosive devices.
At his plea hearing, Lepsky admitted that beginning in January 2017, he began to formulate a plan to detonate the pressure cooker bomb in New York City on behalf of ISIS. Lepsky admitted that he used the internet to access ISIS directives, obtain bomb-making instructions, and purchase the pressure cooker and other items to be used in the attack.
In addition to the prison term, Judge Shipp sentenced Lepsky to lifetime supervised release.
U.S. Attorney Carpenito and Assistant Attorney General Demers credited the FBI and the Joint Terrorism Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the N.J. State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal; the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer; the Point Pleasant Police Department under the direction of Chief Richard P. Larsen; and the N.J. Office of Homeland Security and Preparedness under the direction of Director Jared Maples, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney James Donnelly of the U.S. Attorney’s Office Criminal Division in Newark and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section.
Oakland Resident Pleads Guilty to Conspiring to Sell Fraudulent Financial Instruments and Underreporting IncomeRead the Press Release
OAKLAND – Kenneth Taylor pleaded guilty today to conspiracy to commit wire fraud and to filing a false federal income tax return, announced United States Attorney David L. Anderson, Principal Deputy Assistant Attorney General Ricard E. Zuckerman, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Kareem Carter. The plea was accepted by the Honorable Jon S. Tigar, U.S. District Judge.
According to the plea agreement, between 2009 and 2012, Taylor, of Oakland, Calif., conspired with at least one of his codefendants, Sharon Ringgenberg, of Martinez, and Craig Scott, of Lafayette, to generate and transmit to banks fraudulent standby letters of credit and proof of funds statements. The fraudulent financial instruments were issued by Success Bullion USA, LLC (SBUSA), an entity that was falsely advertised as the United States subsidiary of a large Hong Kong financial institution. Among the reasons that the financial instruments were fraudulent is that they reported false client creditworthiness and they reported client balances that exceeded SBUSA’s assets.
Taylor admitted that, at times when dealing with customers, he posed as a fictional Hong Kong-based attorney for SBUSA. Taylor also admitted he assisted in the creation of SBUSA’s website and that another entity he controlled, Centerlink, LLC, transmitted the fraudulent instruments to banks in a format that rendered the instruments unenforceable. Taylor received at least $550,000 from the scheme. Taylor acknowledged the proceeds were sent to a bank account in Belize he controlled in the name of Centerlink, LLC.
Furthermore, Taylor admitted he filed false 2009 and 2010 federal income tax returns that underreported his income in each year. Taylor also acknowledged he did not file a tax return for tax years 2011 through 2015 despite receiving sufficient income in each year and knowing that he was required to file a return.
On April 13, 2017, a federal grand jury indicted Taylor, Ringgenberg, and Scott. Taylor was charged with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; two counts of wire fraud, in violation of 18 U.S.C. § 1343; and two counts of subscribing to false tax returns, in violation of 26 U.S.C. § 7206(1). Today, Taylor pleaded guilty to the conspiracy count and to one count of making and subscribing a false tax return. If Taylor complies with the plea agreement, the remaining counts pending against him will be dismissed at sentencing.
Judge Tigar scheduled Taylor’s sentencing for August 30, 2019. The maximum statutory sentence for conspiring to commit wire fraud is 20 years in prison and a $250,000 fine. The maximum statutory sentence for making and subscribing a false tax return is three years in prison and a $250,000 fine. However, any sentence following conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Ringgenberg and Scott have both pleaded guilty to their respective roles in the scheme; their sentencings have not yet been scheduled.
Assistant United States Attorney Colin Sampson and Department of Justice Tax Division Trial Attorney Charles A. O’Reilly are prosecuting the case. This case is the result of an investigation by the FBI and IRS-CI.
North Dakota Man Sentenced to Prison for Threatening to Murder A Federal JudgeRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of ROBERT PHILIP IVERS, 65, to 18 months in prison for threatening to murder a federal judge and interstate transmission of a threat to injure. IVERS, who was convicted by a federal jury on September 14, 2018, was sentenced today before Judge Robert W. Pratt, in United States District Court in Saint Paul, Minnesota.
As proven at trial, in January 2017, a United States District Court Judge (the “Victim Judge”) held a bench trial on a lawsuit brought by IVERS. The Victim Judge ruled against IVERS. He responded by sending a series of threatening letters and calling a court employee to say he was crazy angry at the Victim Judge and described himself as a “walking bomb.” IVERS was told repeatedly by Deputy U.S. Marshals to stop his threatening language.
On November 9, 2017, IVERS filed another civil lawsuit alleging the same facts as those in the case he lost before the Victim Judge. As part of the new civil case, IVERS was referred to two volunteer lawyers for a telephone consultation. After the lawyers discussed his case and told IVERS they did not believe he had a valid legal claim, IVERS began talking about his previous case with the Victim Judge. One of the lawyers described IVERS as becoming “intensely angry” and making threatening statements including:
• “This [expletive] judge stole my life from me.”
• “I had overwhelming evidence.”
• The Judge “stacked the deck” to make sure I lost this case.
• “She is lucky” I was “going to throw some chairs.”
• “You don’t know the fifty different ways I planned to kill her.”
After the lawyer reported the threats IVERS made during the phone conversation, two Deputy U.S. Marshals went to a residence in West Fargo, North Dakota to speak with IVERS about the threats. When confronted, IVERS became extremely agitated, and screamed at the Deputies, among other things, that he was glad the Victim Judge was scared, because “that [expletive] judge stole my life.”
This case was the result of an investigation conducted by the United States Marshals Service.
Assistant U.S. Attorneys Julie E. Allyn and Timothy C. Rank prosecuted the case.
Defendant Information:
ROBERT PHILIP IVERS, 65
West Fargo, N.D.
Convicted:
- Threatening to murder a federal judge, 1 count
- Interstate transmission of a threat to injure the person of another, 1 count
Sentenced:
- 18 months in prison
- Three years of supervised release with location monitoring
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
North Carolina Mental Health Company Owner Sentenced to 60 Months in Prison on Health Care Fraud and Tax Evasion ChargesRead the Press Release
The owner of a North Carolina mental health company was sentenced to prison today for the submission of false claims to Medicaid and tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
Catinia Denise Farrington, a resident of Cypress, Texas, was sentenced to 60 months in prison on each count to run concurrently by U.S. District Court Judge N. Carlton Tilley Jr. of the Middle District of North Carolina. On Sept. 4, 2018, Farrington pleaded guilty to one count of health care fraud conspiracy and one count of tax evasion for the tax year 2014.
According to the documents filed with the court, Farrington owned Durham County Mental Health and Behavioral Health Services LLC (DCMBHS) in Durham, North Carolina. From 2011 through 2015, Farrington submitted thousands of false claims to Medicaid for services that were not performed, resulting in approximately $4 million in wrongful payments to DCMBHS. During the relevant period, Haydn Thomas worked as an office manager for an oral surgeon and provided Farrington with the names and Medicaid identification numbers of dental patients. The patient information was used to submit the false claims to Medicaid.
In addition, Farrington earned more than $1.1 million from DCMBHS and evaded income taxes on this money by transferring funds to various business bank accounts and paying personal expenses from the business bank accounts while failing to file tax returns. The resulting tax loss is approximately $391,747.
In addition to the term of imprisonment imposed, Farrington was ordered to serve three years of supervised release and to pay restitution in the amount of $3,950,656 to NC Fund for Medical Assistance and $391,747 to the Internal Revenue Service.
Co-defendant Thomas previously pleaded guilty to making a false statement related to a health care matter and tax evasion. His sentencing hearing is set for March 27, 2019.
Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Martin commended special agents of the Internal Revenue Service and the U.S. Department of Health and Human Service, Office of Inspector General, who conducted the investigation, and Assistant United States Attorney Robert Hamilton, Trial Attorney Mara Strier of the Tax Division and Special Assistant U.S. Attorney Michael Heavner of the Medicaid Investigations Division of the North Carolina Attorney General’s Office, who prosecuted the case.
North Carolina Mental Health Company Owner Sentenced to 60 Months in Prison on Health Care Fraud and Tax Evasion ChargesRead the Press Release
WASHINGTON - The owner of a North Carolina mental health company was sentenced to prison today for the submission of false claims to Medicaid and tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
Catinia Denise Farrington, a resident of Cypress, Texas, was sentenced to 60 months in prison on each count to run concurrently by U.S. District Court Judge N. Carlton Tilley, Jr. of the Middle District of North Carolina. On September 4, 2018, Farrington pleaded guilty to one count of health care fraud conspiracy and one count of tax evasion for the tax year 2014.
According to the documents filed with the court, Farrington owned Durham County Mental Health and Behavioral Health Services, LLC (“DCMBHS”) in Durham, North Carolina. From 2011 through 2015, Farrington submitted thousands of false claims to Medicaid for services that were not performed, resulting in approximately $4 million in wrongful payments to DCMBHS. During the relevant period, Haydn Thomas worked as an office manager for an oral surgeon and provided Farrington with the names and Medicaid identification numbers of dental patients. The patient information was used to submit the false claims to Medicaid.
In addition, Farrington earned more than $1.1 million from DCMBHS and evaded income taxes on this money by transferring funds to various business bank accounts and paying personal expenses from the business bank accounts while failing to file tax returns. The resulting tax loss is approximately $391,747.
In addition to the term of imprisonment imposed, Farrington was ordered to serve three years of supervised release and to pay restitution in the amount of $3,950,656 to NC Fund for Medical Assistance and $391,747 to the Internal Revenue Service.
Co-defendant Thomas previously pleaded guilty to making a false statement related to a health care matter and tax evasion. His sentencing hearing is set for March 27, 2019.
Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Martin commended special agents of the Internal Revenue Service and the U.S. Department of Health and Human Service, Office of Inspector General, who conducted the investigation, and Assistant United States Attorney Robert Hamilton, Trial Attorney Mara Strier of the Tax Division and Special Assistant U.S. Attorney Michael Heavner of the Medicaid Investigations Division of the North Carolina Attorney General’s Office, who prosecuted the case.
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No More Deaths Volunteers Sentenced on the Cabeza Prieta National Wildlife RefugeRead the Press Release
TUCSON, Ariz. – Today, Zaachila Isabel Orozco-McCormick, Natalie Renee Hoffman, Oona Meagan Holcomb, and Madeline Abbe Huse, volunteers with No More Deaths, were sentenced to 15 months of unsupervised probation, fined $250.00 each, and banned from the refuge for the duration of their probation. The defendants were previously convicted at trial for entering a national wildlife refuge without a permit and abandoning personal property. Hoffman was also convicted of operating a motor vehicle in a wilderness area.
On Aug. 13, 2017, United States Fish and Wildlife Service officers assigned to the Cabeza Prieta National Wildlife Refuge in Ajo, Ariz. responded to a group of trespassers who were operating a motor vehicle in a protected wilderness area. Hoffman admitted to driving the car into the wilderness area, and all the defendants admitted to entering the refuge without a permit and leaving a stash of water and canned food at Charlie Bell Well. On Jan. 18, 2019, after a three-day bench trial, the Court found the defendants guilty on all charges, rejecting the defendants’ multiple defenses.
“I commend the excellent work by the United States Fish and Wildlife Service officers and their commitment to preserving the lands Congress has designated as national wildlife refuges,” stated First Assistant U.S. Attorney Elizabeth A. Strange. “Our office will continue to review potential violations on federal lands on a case-by-case basis and bring charges, as appropriate.”
Amy Lueders, Service Southwest Regional Direction for the United States Fish and Wildlife Service stated, “The U.S. Fish and Wildlife Service appreciates the diligence and professionalism of the U.S. Attorney’s Office in prosecuting this case."
The investigation in this case was conducted by the United States Fish and Wildlife Service, and the prosecution was handled by Anna Wright and Nathaniel Walters, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-17-00339-MJ
RELEASE NUMBER: 2019-022_No_More_Deaths
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Ninth Circuit Affirms Dismissal of Former U.S. Department of Agriculture Employee’s Federal Disability Discrimination and Whistleblower Retaliation LawsuitRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced today that the U.S. Court of Appeals for the Ninth Circuit affirmed the dismissal of a disability discrimination and whistleblower retaliation lawsuit brought by a former federal employee of the U.S. Department of Agriculture (USDA).
According to information disclosed during the court proceedings, Wendy Alguard, of Yakima, Washington, sued the Department of Agriculture claiming that the Agricultural Marketing Service, where Alguard worked as a commodity food grader, reassigned her after she reported that the Snokist cannery was hiding totes of moldy applesauce in 2011. Alguard claimed that the agency punished her for whistleblowing, by reassigning her and eventually removing her from federal service when she refused a directed reassignment. Alguard initially brought administrative claims before the Office of Special Counsel (OSC), the USDA’s EEO Office, and the Merit System Protection Board (MSPB). She withdrew her claim before the OSC and lost before the USDA and MSPB and the lawsuit sought review of those decisions. Alguard sought damages of approximately $600,000.00.
Chief Judge Thomas O. Rice dismissed the disability discrimination claim in August of 2015. Alguard filed her appeal with the Court of Appeals in October 2015. After two rounds of briefing, the Court of Appeals affirmed Chief Judge Rice’s order dismissing the case. The Court of Appeals found that the agency showed substantial evidence that overstaffing and declining work led to the decision to reassign Alguard, that any evidence of a retaliatory motive was weak at best, and that the agency correctly identified which workers would be reassigned.
Joseph H. Harrington stated, “Claims of employment discrimination and whistleblowing in federal employment are taken seriously. But when meritless lawsuits are brought, the United States Attorney’s Office for the Eastern District of Washington is dedicated to vigorously defending those suits and protecting the public purse.”
This case was defended by Rudy J. Verschoor, an Assistant United States Attorney for the Eastern District of Washington.
New York Man Sentenced to 63 Months’ Imprisonment for $1.4 Million Dollar International Fraud SchemeRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Prince Edosa, age 54, formerly of Brooklyn, NY, and a dual citizen of both Nigeria and the United States, was sentenced on February 27, 2019, by Chief U.S. District Court Judge Christopher C. Conner to 63 months’ imprisonment for his role in international consumer fraud schemes.
According to United States Attorney David J. Freed, Edosa pleaded guilty in May 2017 to conspiracy and mail fraud charges. Edosa and nine codefendants were indicted in January 2013, and charged with multiple counts of conspiracy, mail fraud, wire fraud, and money laundering. The charges stemmed from the defendants’ perpetration of bogus sweepstakes winnings, advance fee and internet purchase schemes between 2002 and 2010 that defrauded hundreds of consumers across the United States. A substantial portion of the fraud proceeds was diverted to Canada, Nigeria, and Romania by the defendant and his conspirators. Edosa owned and operated three MoneyGram and two Western Union outlets in Brooklyn between 2004 and 2009, and used the MoneyGram and Western Union money transfer systems to launder the fraud victims’ proceeds. Edosa stipulated the losses sustained by 410 victims totaled $1,458,224.
Edosa was a fugitive from justice for more than four years until his arrest in New York, NY in October 2017. Three codefendants including his wife, Susan Osagiede, have been arrested, convicted and sentenced. Six other defendants remain fugitives.
Chief Judge Conner also ordered Edosa to pay $668,525 in restitution.
The case was investigated by the Harrisburg Office of the U.S. Postal Inspection Service. Assistant U.S. Attorney Kim Douglas Daniel is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
New York Man Sentenced to 63 Months’ Imprisonment for $1.4 Million Dollar International Fraud SchemeRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Prince Edosa, age 54, formerly of Brooklyn, NY, and a dual citizen of both Nigeria and the United States, was sentenced on February 27, 2019, by Chief U.S. District Court Judge Christopher C. Conner to 63 months’ imprisonment for his role in international consumer fraud schemes.
According to United States Attorney David J. Freed, Edosa pleaded guilty in May 2017 to conspiracy and mail fraud charges. Edosa and nine codefendants were indicted in January 2013, and charged with multiple counts of conspiracy, mail fraud, wire fraud, and money laundering. The charges stemmed from the defendants’ perpetration of bogus sweepstakes winnings, advance fee and internet purchase schemes between 2002 and 2010 that defrauded hundreds of consumers across the United States. A substantial portion of the fraud proceeds was diverted to Canada, Nigeria, and Romania by the defendant and his conspirators. Edosa owned and operated three MoneyGram and two Western Union outlets in Brooklyn between 2004 and 2009, and used the MoneyGram and Western Union money transfer systems to launder the fraud victims’ proceeds. Edosa stipulated the losses sustained by 410 victims totaled $1,458,224.
Edosa was a fugitive from justice for more than four years until his arrest in New York, NY in October 2017. Three codefendants including his wife, Susan Osagiede, have been arrested, convicted and sentenced. Six other defendants remain fugitives.
Chief Judge Conner also ordered Edosa to pay $668,525 in restitution.
The case was investigated by the Harrisburg Office of the U.S. Postal Inspection Service. Assistant U.S. Attorney Kim Douglas Daniel is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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New Jersey Man Sentenced to 16 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
Gregory Lepsky, 22, of Point Pleasant, New Jersey, was sentenced today to 16 years in prison for planning to construct and use a pressure cooker bomb in New York on behalf of a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (ISIS). Assistant Attorney General for National Security John C. Demers and U.S. Attorney Craig Carpenito for the District of New Jersey made the announcement.
Lepsky pleaded guilty March 13, 2018, before U.S. District Court Judge Michael Shipp to an information charging him with one count of attempting to provide material support to a designated foreign terrorist organization, specifically ISIS. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On Feb. 21, 2017, Lepsky was arrested by the Point Pleasant Police Department in connection with an incident that occurred that day in his family’s home. Following the arrest, law enforcement officers searched the residence and found a new pressure cooker stored behind a roll of bubble wrap in Lepsky’s bedroom closet.
During searches of computers and other digital evidence linked to Lepsky, law enforcement officers found evidence of Lepsky’s plan to build and detonate a bomb as part of his support for ISIS. During several social media communications, Lepsky told others that he intended to fight on behalf of ISIS and that he would, if necessary, become a martyr by driving a “bunch of explosives” to where the “enemies” could be found and blowing himself up.
Law enforcement officers also located a series of instructions that had been published online by another terrorist group that gave specific, step-by-step instructions on how to build a pressure cooker bomb, which coincided with the delivery of the pressure cooker to Lepsky a short time before his arrest. In addition, law enforcement officers recovered a message forwarded by Lepsky from another ISIS supporter stating that if a westerner could not travel to Syria to fight for ISIS, he could conduct a terrorist attack in his home country using improvised explosive devices.
At his plea hearing, Lepsky admitted that beginning in January 2017, he began to formulate a plan to detonate the pressure cooker bomb in New York City on behalf of ISIS. Lepsky admitted that he used the internet to access ISIS directives, obtain bomb-making instructions, and purchase the pressure cooker and other items to be used in the attack.
In addition to the term of imprisonment, Judge Shipp imposed a life term of supervised release.
Assistant Attorney General Demers and U.S. Attorney Carpenito credited the FBI and the Joint Terrorism Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the N.J. State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal; the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer; the Point Pleasant Police Department under the direction of Chief Richard P. Larsen and the N.J. Office of Homeland Security and Preparedness under the direction of Director Jared Maples, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney James Donnelly of the U.S. Attorney’s Office Criminal Division in Newark and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section.
Mineral County man admits to methamphetamine distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Tyler Allen Whitacre, of Elk Garden, West Virginia, has admitted to selling methamphetamine, United States Attorney Bill Powell announced.
Whitacre, age 25, pled guilty to one count of “Distribution of Methamphetamine.” Whitacre admitted to selling methamphetamine in January 2018 in Mineral County.
Whitacre 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 Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police, and the Potomac Highlands Drug & Violent Crimes Task Force investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Robert W. Trumble presided.