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11 April 2019
Berkeley County man admits to cocaine distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Tion Rector Jackson, of Martinsburg, West Virginia, has admitted to cocaine distribution, United States Attorney Bill Powell announced.
Jackson, age 28, pled guilty to one count of “Distribution of Cocaine Base.” Jackson admitted to selling cocaine base in November 2017 in Berkeley County.
Jackson 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 and The West Virginia State Police investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Attorney Michael Avenatti Named in Federal Grand Jury Indictment that Accuses Him of Stealing Millions of Dollars from ClientsRead the Press Release
LOS ANGELES – A federal grand jury indictment filed late Wednesday charges high-profile attorney Michael Avenatti with a host of fraud and tax offenses that allege, among other things, that he stole millions of dollars from clients and millions of dollars of employment taxes that his coffee company should have paid to the Internal Revenue Service.
The 36-count indictment, which was returned by a grand jury in Santa Ana, outlines four areas of criminal conduct, all of which relate to the misappropriation and/or the illegal concealment of funds.
Avenatti, 48, who resides in Century City, was arrested in this case on March 25 pursuant to a criminal complaint that alleged the theft of money from one client and the use of bogus tax returns to obtain a series of loans. The indictment, which is now the operative charging document, alleges this conduct, but also significantly broadens the scope of the case.
The criminal charges in the indictment address four areas of wrongdoing: the embezzlement of millions of dollars that should have been paid to clients, the failure to file income tax returns and failure to pay the IRS millions of dollars in taxes, the submission of fraudulent loan applications that included tax returns never filed with the IRS, and the concealment of assets from the Bankruptcy Court.
“These four areas of criminal conduct alleged in the indictment are all linked to one another because money generated from one set of crimes appears in other sets – typically in the form of payments to lull victims and to prevent Mr. Avenatti’s financial house of cards from collapsing,” said United States Attorney Nick Hanna.
“The financial investigation conducted by the IRS details a man who allegedly failed to meet his obligations to the government, stole from his clients, and used his ill-gotten gains to support his racing team, the ownership of Tully’s coffee shops, and a private jet,” said Acting Special Agent in Charge Ryan L. Korner with IRS Criminal Investigation in Los Angeles. “Individuals who intentionally thwart the IRS and fail to meet their tax obligations will be caught and they will be held accountable”
The Wire Fraud Charges
Avenatti faces 10 counts of wire fraud related to more than $12 million he received on behalf of clients as a result of settlements in lawsuits and other negotiations. While he was entitled to attorney’s fees for work done on behalf of clients, the indictment alleges that Avenatti stole millions of dollars from clients he represented in four matters.
In each of the four cases of embezzlement alleged in the indictment, Avenatti received money on behalf of clients into client trust accounts, misappropriated the money, and lied to the clients about receiving the money or, in one case, claimed that the money had already been sent to the client.
- In the case of a victim called Client 1 in the indictment, Avenatti represented the man in a lawsuit against the County of Los Angeles that alleged, among other things, Client 1 became a paraplegic as a result of the county violating his constitutional rights. The county paid a $4 million settlement in January 2015, but within months Avenatti had drained the entire settlement payment from his law firms’ trust account and used portions of the settlement to finance his coffee business or pay personal expenses. Avenatti concealed the receipt of the settlement from Client 1 and instead gave him periodic “advances” of no more than $1,900 and paid the rent for his assisted living facility, according to the indictment.
- Client 2 obtained a $3 million settlement in a matter, which included a payment of $2.75 million in early 2017. The indictment alleges that Avenatti took the bulk of this money – $2.5 million – and used it to purchase his portion of a jet, while falsely telling Client 2 that the settlement called for monthly payments over eight years. Avenatti made 11 monthly payments, making them appear to come from the individual who paid the settlement, but then Avenatti allegedly stopped paying Client 2.
- Client 3 is the client-victim discussed in the criminal complaint who was to receive a $1.9 million settlement in an intellectual property dispute. Avenatti allegedly embezzled the first installment of $1.6 million in January 2018, in part by providing Client 3 with a bogus settlement agreement indicating that the payment was going to be made two months later. The indictment alleges that Avenatti used the money to pay expenses at his coffee business and to pay his own legal expenses.
- Clients 4 and 5 divested shares in a company after Avenatti negotiated a “Common Stock Repurchase Agreement” for the sale of nearly $27.5 million worth of shares and then another sale of approximately $8.15 million worth of shares. When the first payment was made, Avenatti took his fees for the overall $35 million sale and sent the balance to Client 4. But when the second stock sale was finalized and the company sent nearly $8.15 million, Avenatti kept $4 million for himself and used this money to pay some of his law firm’s bankruptcy creditors, including the IRS; to provide funding for his various businesses; and to make lulling payments to Client 1 and Client 2. When Client 4 and Client 5 demanded their money, Avenatti falsely told them that the purloined $4 million already had been wired to them and provided them with a wire transfer confirmation document which actually documented the transfer of an earlier $4 million payment.
The Tax Fraud Charges
The indictment charges Avenatti with a total of 19 tax-related offenses. The indictment alleges that Avenatti has failed to file personal income tax returns since 2010, and that he failed to file various tax returns for his two law firms in which he held a controlling interest.
Some of the tax charges relate to Avenatti’s ownership of Global Baristas US LLC (GBUS), which operated Tully’s Coffee. Starting in late 2015 and continuing into 2017, GBUS failed to file employment tax returns and failed to pay approximately $3.2 million in federal payroll taxes, according to the indictment, which notes that this figure includes at least $2.3 million in “trust fund taxes” that GBUS had withheld from its employees’ paychecks. In 2016, the IRS initiated a collection action against GBUS, and, in June 2017, the IRS filed a federal tax lien against GBUS as part of its attempts to collect nearly $5 million in unpaid federal payroll taxes and penalties.
Further, Avenatti allegedly attempted to obstruct the IRS’s efforts to collect the taxes. The indictment alleges that he lied to an IRS revenue officer, opened a new bank account to receive funds related to credit card transactions at Tully’s coffee shops, and directed Tully’s employees to deposit cash receipts into a bank account belonging to a car racing outfit that Avenatti also owned. Some of the money that should have been used to pay GBUS’ tax debt was transferred to bank accounts associated with Avenatti’s law firms, and some of that money was used to make lulling payments to Clients 1 and 2.
The Bank Fraud Charges
Avenatti faces two counts of bank fraud stemming from an alleged scheme in which he submitted bogus financial information to obtain three loans totaling $4.1 million from The People’s Bank, a federally insured financial institution in Mississippi. As previously alleged in the criminal complaint, Avenatti submitted personal tax returns that had never been filed with the IRS, but the indictment further alleges that he submitted documents to the bank that overstated the resources of the Eagan Avenatti law firm. For example, the indictment accuses Avenatti of submitting a balance sheet for the law firm stating that the law firm, on March 10, 2014, had $508,200 in its operating account, when in fact the account held slightly more than $43,000. Avenatti also allegedly submitted to the bank a partnership tax return for Eagan Avenatti for 2012 that was different from the return actually submitted to the IRS in that the return provided to the bank reported close to $8 million in additional business income.
The Bankruptcy Fraud Charges
Avenatti faces four bankruptcy fraud charges for allegedly making false statements in relation to a bankruptcy case involving Eagan Avenatti. As the managing partner of the firm, Avenatti agreed in the bankruptcy proceeding to abide by certain guidelines and requirements, including filing monthly operating reports that detailed all of the firm’s financial information. Three of the bankruptcy fraud charges allege that Avenatti submitted, under penalty of perjury, monthly operating reports that failed to report all of the firm’s accounts receivable. Additionally, Avenatti is charged with falsely testifying under oath during a June 2017 bankruptcy hearing by denying the firm had received any fees related to a lawsuit when Eagan Avenatti had actually received more than $1.3 million, which included attorney’s fees in relation to that case.
The indictment specifically charges Avenatti with 10 counts of wire fraud related to the theft of money that should have been paid to clients, eight counts of willful failure to collect and pay over taxes withheld from GBUS employee, one count of endeavoring to obstruct the administration of the Internal Revenue Code, four misdemeanor counts of willful failure to file his personal tax returns for the years 2014 through 2017, three misdemeanor counts of willful failure to file Eagan Avenatti’s tax returns for the years 2015 through 2017, three misdemeanor counts of willful failure to file tax returns for Avenatti & Associates for the years 2015 through 2017, two counts of bank fraud related to the loans received from The People’s Bank, one count of aggravated identity theft for misusing the name of a tax preparer in relation to the bank fraud scheme, three counts of making false declarations in relation to a bankruptcy, and one count of giving false testimony under oath in Bankruptcy Court.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If he were to be convicted of the charges alleged in the indictment, Avenatti would face a statutory maximum sentence of 333 years in federal prison, plus an additional two-year mandatory consecutive sentence for the aggravated identity theft charge.
Avenatti, who is free on a $300,000 bond, is scheduled to be arraigned on the indictment on April 29 in United States District Court in Santa Ana.
The ongoing investigation into Avenatti is being conducted by IRS Criminal Investigation, which has received assistance from the Newport Beach Police Department and the Orange County District Attorney’s Office.
This case is being prosecuted by Assistant United States Attorneys Julian L. André of the Major Frauds Section and Brett A. Sagel of the Santa Ana Branch Office.
In a related action on Wednesday, federal authorities seized the Honda jet that was purchased, in part, with money Avenatti allegedly stole from Client 2. That portion of the case is being handled by Assistant United States Attorney Steven R. Welk, Chief of the Asset Forfeiture Section.
Avenatti IndictmentArmed Drug Trafficker Sentenced to More Than 8 Years in PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Barry Whitaker, 41, of Rochester, NY, who was convicted of possession with intent to distribute heroin, and possession of a firearm in furtherance of a drug trafficking crime, was sentenced to serve 106 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Charles Moynihan, who handled the case, stated that Whitaker was arrested following a police investigation by the Elmira Police Department which took officers to the area of West Third Street for a call of drug-related activity. Upon their arrival, the officers stopped a car that defendant was driving on Park Place in an area north of West Clinton Street. Smelling marijuana, officers ordered Whitaker and the other occupants out of the vehicle. Officers found a loaded .45 caliber semiautomatic pistol in the defendant’s waistband and marijuana in his coat pocket. Subsequently, officers also found Whitaker to have 75 small packages containing heroin, a bag of cocaine, and approximately $1,201.00 in United States currency. In a backpack in the trunk of the vehicle, the officers found a plastic bag containing approximately 21 grams of heroin, as well as more heroin packaged for distribution. They also found drug packaging material and items commonly seen in drug trafficking.
The matter was brought by the United States Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. 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 plea is the result of an investigation by the Elmira Police Department, under the direction of Chief Joseph Kane, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
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Armed Career Criminal Is Sentenced to 15 Years in PrisonRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney R. Andrew Murray announced today that Saheed Jamal Grant, 21, of Asheville, was sentenced to 180 months in prison and three years of supervised release for possession of a firearm by a convicted felon. U.S. District Judge Martin Reidinger presided over the sentencing.
David S. Booth, Acting Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Interim Chief Wade Wood of the Asheville Police Department join U.S. Attorney Murray in making today’s announcement.
According to court documents and today’s sentencing hearing, on June 13, 2018, law enforcement were conducting a routine warrantless search of the residence of an individual who was under state probation. Over the course of the search, law enforcement encountered Grant in an upstairs bedroom of the residence. Law enforcement found Grant to be in possession of a firearm which was loaded with 10 rounds of ammunition, one of which was in the firearm’s chamber. Grant has multiple prior felony convictions, including Possession of a Handgun By Minor, Felony Breaking and/or Entering, and Possession of Stolen Firearm, which prohibit him from possessing firearms. At today’s sentencing hearing Grant received an enhanced sentence as an “Armed Career Criminal.”
On December 7, 2018, Grant pleaded guilty to possession of a firearm by a convicted felon. He is currently in federal custody and will be transferred to custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
In making today’s announcement U.S. Attorney Murray thanked the ATF and the Asheville Police Department for their investigation of the case.
Assistant U.S. Attorney Gill Beck of the U.S. Attorney’s Office in Asheville prosecuted the case.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Ansonia Man Pleads Guilty to Federal Gun ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kelly D. Brady, Special Agent in Charge, ATF Boston Field Division, today announced that ABDUL JALIL HUMPHREY, 26, of Ansonia, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to possession of a firearm by a convicted felon.
According to court documents and statements made in court, in May 2018, ATF special agents examined a video of Humphrey handling a firearm in the summer of 2017. Analysis of the video revealed that the firearm was a Taurus, PTIII Millennium G2, 9mm pistol, which had been purchased by Humphrey’s friend at a gun shop in North Carolina on June 21, 2017.
Humphrey’s criminal history includes state felony convictions for sale of a controlled substance and assault in the second degree. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Humphrey was arrested on October 30, 2018.
The offense carries a maximum term of imprisonment of 10 years. A sentencing date is not scheduled.
Humphrey is released on a $25,000 bond pending sentencing.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
This prosecution 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.
Anchorage Man Sentenced to Federal Prison for Stealing Woolly Mammoth Tusk from Campbell Creek Science CenterRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that an Anchorage man has been sentenced to federal prison after he and a co-conspirator stole a fossilized woolly mammoth tusk from an Anchorage BLM museum, and then cut the tusk into pieces and sold them for profit.
Martin Thornley Elze, 52, of Anchorage, was sentenced today by U.S. District Judge Sharon L. Gleason, to serve 33 months in federal prison, followed by three years of supervised release. In December 2018, Elze pleaded guilty to one count of removal of a paleontological resource. As part of his sentence, Elze was also ordered to pay $8,385.82 in restitution to the Campbell Creek Science Center.
According to court documents, Elze and his co-conspirator, Gary Lynn Boyd, stole a mammoth tusk, which is an irreplaceable paleontological resource that was displayed at the Campbell Creek Science Center (CCSC), a BLM museum. Specifically, on March 7, 2018, Elze and Boyd targeted the tusk in advance by visiting the CCSC and asked the staff specific questions about the weight and authenticity of the tusk. Elze and Boyd returned to CCSC the next night, on March 8, 2018, when it was closed. Boyd used a rock to break a window, causing $1,385.22 in damage, to unlawfully open a door at the CCSC. After Boyd removed the tusk from the CCSC, he and Elze worked together to carry away the tusk, which was caught on the museum’s video surveillance system.
The investigation revealed that Elze committed this crime for pecuniary gain. Elze and Boyd cut the mammoth tusk into pieces and sold them for profit. As such, the mammoth tusk was never returned to the BLM. According to court documents, when the tusk was in its original condition, prior to being plundered and cleaved, it was worth approximately $7,000 to $9,000.
The investigation further revealed that, in June 2018, and while in custody due to an unrelated state prosecution, Elze attempted to influence a witness to make materially false statements to the federal grand jury hoping it would shield him from prosecution.
Boyd is scheduled to be sentenced on Wednesday, May 15, at 1:30 p.m. at the federal courthouse. In January 2019, Boyd pleaded guilty to one count of removal of a paleontological resource.
The Bureau of Land Management (BLM) Office of Law Enforcement and Security, and the Anchorage Police Department (APD) conducted the joint investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jonas M. Walker.
Activity in the United States Attorney's OfficeRead the Press Release
Federal District Court Judge Alan B. Johnson sentenced GABRIEL SETH RODGERS, 19, of Sundance, Wyoming on April 8, 2019 for possession of stolen firearms and conspiracy to distribute LSD and marijuana. Rodgers was arrested in Casper, Wyoming. He received a total of forty-four months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay restitution in the amount of 27,115.57. The Gillette Police Department, Wyoming Division of Criminal Investigation and the ATF investigated this case.
10 April 2019
Woman Sentenced to 86 Months for Methamphetamine Drug ConspiracyRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge Louise W. Flanagan sentenced KRISTEN RENE LITTLE, 24, of Angier, North Carolina to 86 months imprisonment, followed by 5 years of supervised release.
The prosecution of LITTLE was a part of an Organized Crime and Drug Enforcement Task Force Operation (OCDETF), which has focused on methamphetamine manufacturers and distributors in Wilson and Wayne counties.
LITTLE was named in a seven-count Indictment filed on February 28, 2018 charging her with conspiracy to manufacture, distribute, dispense and possess with the intent to distribute fifty (50) grams or more of a mixture and substance containing a detectable amount of methamphetamine from March 2013 until June 13, 2015; possession of equipment, chemicals, products and materials with the intent to manufacture methamphetamine; and possession of pseudoephedrine with intent to manufacture methamphetamine. On July 25, 2018, LITTLE pled guilty to the conspiracy charge.
According to the investigation, LITTLE was a part of a drug trafficking organization that manufactured and distributed methamphetamine in Wayne County, North Carolina. LITTLE utilized at least five other people to purchase pseudoephedrine on her behalf. Pseudoephedrine is one of the main ingredients utilized in the manufacturing of methamphetamine. On June 13, 2015, officers located LITTLE in Vinton, Louisiana with syringes in the vehicle as well as a bottle in the process of manufacturing methamphetamine. LITTLE’s manufacturing of methamphetamine created a substantial risk of harm to human life or the environment.
This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by the North Carolina State Bureau of Investigation, Wayne County Sheriff’s Office, and Vinton Police Department, Vinton, Louisiana. Assistant United States Attorney Dena King represented the government.
Woman Pleads Guilty to Defrauding Non-Profit OrganizationRead the Press Release
NORFOLK, Va. – A Newport News woman pleaded guilty today to her role in a conspiracy to defraud the Patient Advocate Foundation (PAF), a non-profit corporation that provides case management services and financial aid to Americans with chronic, life-threatening, and debilitating illnesses.
According to court documents, Andrea Braxton Wallace, 39, was a PAF employee assigned to work with their Co-Pay Relief Program. The program is designed to help low-income individuals pay for medications and treatments associated with certain diagnosed illnesses, such as Hepatitis C, various cancers, and HIV/AIDS. Eligibility for the program is based upon an individual’s diagnosed illness and annual household income. If approved, a PAF patient is awarded a grant (typically ranging from $12,000 to $25,000 per year) against which they can make claims for reimbursement for medications and treatments attendant to their disease.
The scheme, which was run by a group of PAF employees and several “outsiders”, involved creating fake patient accounts with false diagnoses, then making false claims for reimbursement against the grants that were awarded. Once the reimbursement checks were cut, the co-conspirators would cash them and split the proceeds. Wallace was employed as a Verification Specialist at PAF. She recruited two outsiders to create fake applications, cash checks, and otherwise participate in the scheme. She was the direct cause of about $35,000 in losses to PAF.
Wallace pleaded guilty to conspiracy to commit health care fraud and faces a maximum penalty of 10 years in prison when sentenced on July 11. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Assistant U.S. Attorney V. Kathleen Dougherty is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-35.
Vincent Esposito Pleads Guilty in Manhattan Federal Court to Racketeering ConspiracyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Michael C. Mikulka, Special Agent-in-Charge, New York Region, U.S. Department of Labor, Office of Inspector General (“DOL-OIG”), and James P. O’Neill, Police Commissioner of the City of New York (“NYPD”), announced that VINCENT ESPOSITO pled guilty today to conspiring to commit racketeering offenses with members and associates of the Genovese Crime Family of La Cosa Nostra. ESPOSITO pled guilty before U.S. Magistrate Judge Sarah Netburn.
U.S. Attorney Geoffrey S. Berman said: “As he admitted today, for more than a decade Vincent Esposito made millions with members of the Genovese Crime Family by extorting payments, demanding kickbacks, committing fraud, and instilling fear. Thanks to an extensive investigation by our law enforcement partners, Esposito has been unmasked as a criminal and put out of business.”
FBI Assistant Director William F. Sweeney Jr. said: “The shakedown of union officials, racketeering and extortion may sound like throwback behavior of mobsters who operated decades ago. However, the bread and butter of the mafia is to make money, so the illegal enterprises they’ve always engaged in are being used even in the modern era. The FBI New York Organized Crime Task Force will investigate whatever illicit activity the mob chooses to pursue, in order to stop their criminal behavior.”
DOL-OIG Special Agent in Charge Michael C. Mikulka said: “Vincent Esposito engaged in a scheme to extort annual cash payments from a union official by threatening violence or the loss of their position if they did not give in to his extortionate demands. Esposito’s guilty plea affirms the U.S. Department of Labor Office of Inspector General’s commitment to protecting unions and their members from those who seek to exploit unions for their own personal gain. We will continue to work with our local and federal law enforcement partners to ensure unions can operate in a fair and just environment and function within the confines of federal law.”
Police Commissioner James P. O’Neill said: “The NYPD, its law enforcement partners and others in government are committed to eradicating organized crime in the City of New York. Associates of La Cosa Nostra – or any other enterprise that seeks to enrich its members through racketeering and the threat of violence – should know that investigators will build strong cases against them and they will be prosecuted. I want to thank the members of the NYPD, the FBI, the Southern District and the members of the U.S. Department of Labor’s Office of Inspector General and Office of Labor-Management Standards for their work on this case.”
According to the Indictment and statements made during public court proceedings:
La Cosa Nostra, also known as the “Mob” or the “Mafia,” operates through entities known as “Families.” One of the Families operating in the New York City area is the Genovese Crime Family. For years, continuing until 2017, ESPOSITO conspired with other members and associates of the Genovese Crime Family to commit a wide range of crimes to enrich themselves, including multiple acts of extortion, honest services fraud, and bribery. Among other things, ESPOSITO directed the long-running extortion of a union official (“Official-1”) for annual tribute payments of more than over $10,000, and had a number of lower-ranking members of the enterprise collect money and convey threats to Official-1 on Esposito’s behalf. In another extortion scheme, ESPOSITO’s co-conspirators extorted a different union official (“Official-2”) and a financial adviser (the “Adviser”) for a cut of commissions made from union investments.
At the time of ESPOSITO’s arrest, the FBI executed a search warrant on his home and seized more than $3.8 million in U.S. currency hidden throughout the residence, along with an unregistered handgun, ammunition, brass knuckles, and lists of made members of the Genovese Crime Family. As part of today’s guilty plea, ESPOSITO agreed to forfeit the more than $3.8 million seized by the FBI as criminal proceeds resulting from the offense.
Mr. Berman also announced that two other co-defendants, FRANK COGNETTA and VINCENT D’ACUNTO, both former union officials, previously pled guilty to conspiracy to commit racketeering. As part of the conspiracy, D’ACUNTO participated in the extortion of Official-1. Also as part of the conspiracy, COGNETTA engaged in various schemes to defraud his union of his honest services by, among other things, soliciting and accepting bribes and steering union benefit plans into investments in exchange for kickbacks, which resulted in more than $1 million in unlawful payments. Charges remain pending against two of ESPOSITO’s co-defendants, Steven Arena and Frank Giovinco, with trial scheduled for June 17, 2019, before U.S. District Court Judge Victor Marrero. The charges in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
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ESPOSITO, 51, pled guilty to one count of conspiracy to commit racketeering, which carries a maximum sentence of 20 years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. ESPOSITO’s sentencing is scheduled for July 10, 2019, before Judge Marrero.
Mr. Berman praised the outstanding investigative work of the FBI, the U.S. Department of Labor’s Office of Inspector General and Office of Labor-Management Standards, the NYPD, and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Kimberly J. Ravener, Jared Lenow, and Jason M. Swergold are in charge of the prosecution.
U.S. Attorney’s Office and WV Human Trafficking Task Force offer trainingRead the Press Release
MARTINSBURG – A human trafficking training will be held this week in Berkeley County as a part of National Crime Victims’ Rights Week, U.S. Attorney Bill Powell announced.
The U.S. Attorney’s Office, along with the West Virginia Human Trafficking Task Force, has partnered with the Eastern Panhandle Empowerment Center to offer “Human Trafficking 101: Criminal Justice Response.” The goal of the training is to convey the reality and seriousness of human trafficking crimes. The training will provide practical guidance to distinguish trafficking from other crimes and offer a comprehensive overview of the state and federal anti-trafficking laws. It will also provide information on the identifying and triage of trafficking victims, and more on initiating trafficking investigations.
The day will include presentations from Criminal Chief Paul T. Camilletti and Assistant U.S. Attorney Andrew Cogar, both of the Northern District of West Virginia; Assistant U.S. Attorney Erin Kulpa of the Western District of Virginia; Sgt. Talia Davita of the West Virginia State Police; FBI Special Agent Theresa Hudson, and Katie Spriggs, the Executive Director of the Eastern Panhandle Empowerment Center.
The event will be held at the Shepherdstown Fire Department on Thursday, April 11, 2019. More than 100 attendees are expected, which includes law enforcement, prosecutors, and service providers. The event is free for those registered.
In 2018, the National Human Trafficking hotline received 52 calls regarding human trafficking in West Virginia. Those calls resulted in the identification of 12 confirmed cases. The majority of those cases were sex trafficking cases.
For more information on human trafficking, go to the West Virginia Human Trafficking Task Force website at https://stophumantraffickingwv.org/.
U.S. Attorney Supports Georgia Storm Victims, Urges Citizens "Do Not Let Disaster Strike Twice"Read the Press Release
ALBANY - On the six-month anniversary of Hurricane Michael, a historic storm that caused billions in damage across Georgia, a Public Service Announcement (PSA) from the United States Attorney’s Office for the Middle District of Georgia (USAO MDGA) is educating citizens about the National Center for Disaster Fraud (NCDF). The Department of Justice manages and tracks complaints of fraudulent activity, including sham charities and people posing as government officials or contractors who prey on storm victims, looking to steal identities or storm benefits. In the PSA, U.S. Attorney Charles “Charlie” Peeler urges citizens to not let “disaster strike twice” and report storm related fraud 24 hours a day, 7 days a week to the Justice Department’s NCDF Disaster Fraud Hotline at 1-866-720-5721 or at [email protected].
When a storm victim makes a complaint, NCDF investigators review the complaint and, as appropriate, refer the complaint to the proper federal, state, or local agency in the relevant jurisdiction. Since NCDF’s creation in 2005, more than 95,000 complaints have been received. The U.S. Attorney’s Office in the Middle District of Georgia has an assigned prosecutor to review complaints referred to this Office since Hurricane Michael made landfall in Georgia on October 10, 2018. Hurricane Michael was the strongest hurricane on record to hit the Florida panhandle, crossing into Georgia as a Category 3+ hurricane, the first time a major hurricane has directly impacted Georgia in nearly 130 years. Damage estimates to the agricultural industry alone are estimated at $2.5 billion. Millions of dollars in federal disaster relief has poured into Georgia in the wake of Hurricane Michael.
“The impact of Hurricane Michael is still being felt in South Georgia, and the disastrous effects will continue to be felt for years to come” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “I am concerned that residents don’t know there are protections in place when they think they have been victims of fraud, or when they see others taking advantage of federal disaster relief dollars. I promise that this Office will pursue criminals who are trying to scam storm victims who have already suffered so much.”
The National Center for Disaster Fraud (NCDF) is the result of a partnership between the U.S. Department of Justice and various law enforcement and regulatory agencies to form a national coordinating agency within the Criminal Division of the Department of Justice to improve and further the detection, prevention, investigation and prosecution of fraud related to natural and man-made disasters, and to advocate for the victims of such fraud. NCDF operates a call center 24 hours a day, 7 days a week, to take disaster fraud complaints through a national hotline number (1-866-720-5721) and via email at [email protected]. The Disaster Fraud Hotline PSA can be viewed and shared at 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.
U.S. Attorney Announces Summer Camps’ Obligations to Reasonably Accommodate Children with DisabilitiesRead the Press Release
Summer camps are legally required to make reasonable accommodations to accept children with disabilities, U.S. Attorney Christina E. Nolan announced today.
With summer approaching, Vermont camps are preparing to welcome children. To help ensure that children with disabilities receive the opportunity to attend summer camp, the U.S. Attorney’s Office recently sent the attached flyer to hundreds of summer camps located within the State of Vermont reminding them of their obligations under the Americans with Disabilities Act (“ADA”).
Under the ADA, summer camps, both private and those run by municipalities, must make reasonable modification to enable campers with disabilities to participate fully in all camp programs and activities. This generally means that children with disabilities are entitled to attend any camp or activity that non-disabled children attend, that camps must evaluate each child on an individual basis, and that camps must train their staff in the requirements of the ADA. Camps are obligated to pay for the cost of any reasonable modifications necessary for children with disabilities to participate in camp activities, and parents should not be charged any additional fee beyond standard camp enrollment costs.
“The law requires camps to provide equal opportunities to children with disabilities whose needs can be reasonably accommodated,” U.S. Attorney Nolan remarked. “But of equal importance is that it is the right thing to do. Camps present a tremendous opportunity for positive experiences in childhood, offering environments where children grow in confidence, knowledge, ability and interpersonal skill. No child should be unreasonably denied those opportunities because they have a disability.”
Additional information about the ADA is available at www.ada.gov or via phone at the ADA Information Line: 800-514-0301 (voice); 800-514-0383 (TTY). If you believe your civil rights have been violated, you may file a complaint with the U.S. Attorney’s Office for the District of Vermont by visiting https://www.justice.gov/usao-vt and clicking “File a Civil Rights Complaint.”
Two Nevada Family Members Sentenced to PrisonRead the Press Release
Two Las Vegas, Nevada, co-conspirators, who filed false tax returns seeking millions of dollars of fraudulent tax refunds, were sentenced to prison today, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Defendant Chanh V. Trinh was sentenced to 102 months in prison and defendant Cannedy Trinh was sentenced to 24 months in prison.
According to documents filed with the court, Chanh V. Trinh, Cannedy Trinh, and Elizabeth Trinh, conspired to file federal corporate and individual tax returns reporting false income tax withholdings and payments, in order to cause the Internal Revenue Service (IRS) to issue fraudulent income tax refunds. The Trinhs filed the returns in the names of fictitious business entities, their own names, and the names of other individuals, including a long-deceased family member. Chanh V. Trinh prepared and filed the returns. All three defendants deposited or cashed the fraudulently obtained refund checks using bank accounts and check-cashing businesses in Las Vegas. To conceal the funds, the defendants regularly purchased cashier’s checks, which they used to obtain gambling chips at local casinos. The conspiracy resulted in false claims of more than $6 million, and more than $2 million in fraudulent refunds paid out by the IRS.
In addition to the term of imprisonment, U.S. District Court Judge James C. Mahan ordered the defendants to each serve three years of supervised release. Defendant Chanh V. Trinh was ordered to pay restitution of $2,331,021, and defendant Cannedy Trinh was ordered to pay restitution of $1,144,902. Co-defendant Elizabeth Trinh is scheduled to be sentenced on May 15, 2019.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Thomas W. Flynn and Eric C. Schmale of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Two Nevada Family Members Sentenced to PrisonRead the Press Release
LAS VEGAS, Nev. – Two Las Vegas, Nevada, co-conspirators, who filed false tax returns seeking millions of dollars of fraudulent tax refunds, were sentenced to prison today, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Defendant Chanh V. Trinh was sentenced to 102 months in prison and defendant Cannedy Trinh was sentenced to 24 months in prison.
According to documents filed with the court, Chanh V. Trinh, Cannedy Trinh, and Elizabeth Trinh, conspired to file federal corporate and individual tax returns reporting false income tax withholdings and payments, in order to cause the Internal Revenue Service (IRS) to issue fraudulent income tax refunds. The Trinhs filed the returns in the names of fictitious business entities, their own names, and the names of other individuals, including a long-deceased family member. Chanh V. Trinh prepared and filed the returns. All three defendants deposited or cashed the fraudulently obtained refund checks using bank accounts and check-cashing businesses in Las Vegas. To conceal the funds, the defendants regularly purchased cashier’s checks, which they used to obtain gambling chips at local casinos. The conspiracy resulted in false claims of more than $6 million, and more than $2 million in fraudulent refunds paid out by the IRS.
In addition to the term of imprisonment, U.S. District Court Judge James C. Mahan ordered the defendants to each serve three years of supervised release. Defendant Chanh V. Trinh was ordered to pay restitution of $2,331,021, and defendant Cannedy Trinh was ordered to pay restitution of $1,144,902. Co-defendant Elizabeth Trinh is scheduled to be sentenced on May 15, 2019.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Thomas W. Flynn and Eric C. Schmale of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Two Men Charged in $1.5 Million Apple Gift Card SchemeRead the Press Release
A New York man appeared in federal court in Dallas Tuesday afternoon on charges related to his alleged role in a $1.5 million Apple gift card scheme, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Syed Ali, 29, and his co-conspirator, Jason Tout-Puissant, 27, were both charged with conspiracy to commit wire fraud and wire fraud in December.
“These defendants may have assumed their fraud would go unnoticed simply because $1.5 million is small compared to the revenue that Apple expects to generate – but thankfully, the FBI is vigilant for fraud of all shapes and sizes,” said U.S. Attorney Nealy Cox. “DOJ is committed to protecting American companies, large and small, from fraudulent schemes like this.”
“The FBI worked to identify and end the scheme carried out by the defendants,” said Michael Schneider, Acting Special Agent in Charge of the FBI Dallas Division. “Our private sector partnerships allow us to effectively target cyber criminals who attempt to steal property or sensitive information.”
According to the indictment, Mr. Tout-Puissant allegedly obtained an Apple point-of-sale device called an “Isaac” and used it to load thousands of dollars of fraudulent store credits onto gift cards over the course of about 16 months.
He then sent the gift cards digitally to Mr. Ali, who allegedly used them to purchase computers and other Apple products from the company’s brick-and-mortar retail stores across the country.
Mr. Ali was arrested in New York in March, and subsequently removed to the Northern District of Texas, where he appeared before U.S. Magistrate Judge David L. Horan Tuesday afternoon. If convicted, Mr. Ali and Mr. Puissant face up to 20 years in federal prison on each count.
An indictment is merely an allegation of wrongdoing, not evidence. Both defendants are presumed innocent until proven guilty in a court of law.
The Federal Bureau of Investigations conducted the investigation. Assistant U.S. Attorney Sid Mody prosecuted the case.
Turtle Creek Woman Pleads Guilty in Attempt to Bring Heroin from Mechanicsburg to PittsburghRead the Press Release
PITTSBURGH - A resident of Turtle Creek, PA, pleaded guilty in federal court to a charge of attempted distribution of heroin, United States Attorney Scott W. Brady announced today.
Shyann Johnson, 27, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that Shyann Johnson was indicted in connection with a DEA wiretap investigation. The intercepted wiretap communications revealed that in June 2016, Johnson traveled to Mechanicsburg, PA to meet with a heroin supplier to attempt to bring nearly 400 bricks of heroin back to Pittsburgh for distribution of the heroin by members of the conspiracy.
Judge Fischer scheduled sentencing for September 9, 2019 at 9:30 a.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s bond.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises. United States Attorney Brady commended the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Pittsburgh Bureau of Police, and Pennsylvania State Police for the investigation leading to the successful prosecution of Johnson.
Tucson Bank Robber Sentenced to over 18 Years in Federal PrisonRead the Press Release
TUCSON, Ariz. – On April 8, 2019, Shad Richard Thompson, 43, of Tucson, Ariz., was sentenced by U.S. District Judge Jennifer G. Zipps to serve 222 months (18.5 years) in prison and pay $4,784 in restitution. Thompson was convicted of conspiracy to commit bank robbery and bank robbery following a jury trial. Thompson’s term of imprisonment will be followed by three years of supervised release.
On Oct. 5, 2017, Thompson and a co-defendant planned and executed the robbery of Pyramid Federal Credit Union located on East Grant Road, in Tucson. The pair used a demand note to commit the bank robbery, which the co-defendant wrote on a napkin while Thompson told her what to write. Thompson drove the co-defendant to the Credit Union, parked in a space hidden by bushes, and waited while the co-defendant went in to present the note demanding the Credit Union’s money. The co-defendant entered the Credit Union wearing Thompson’s t-shirt and hat while carrying a brown purse that Thompson had instructed her to use to carry out the Credit Union’s money. After presenting the demand note and receiving $4,784 from the teller, the co-defendant departed the Credit Union, got back in the car with Thompson, and the pair drove off. Thompson and the co-defendant fled Arizona, but were later arrested in Wyoming. Further investigation revealed that Thompson had been involved in multiple prior bank robberies.
The investigation in this case was conducted by Federal Bureau of Investigation, Tucson. The prosecution was handled by Lori L. Price and Erica L. Seger, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-17-01732-TUC-JGZ
RELEASE NUMBER: 2019-049_Thompson
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Tigard Man Sentenced to 15 Years in Federal Prison for Sexually Exploiting Minors Using Social MediaRead the Press Release
PORTLAND, Ore.—David Ernest Otto, 50, of Tigard, Oregon, was sentenced today to 180 months in federal prison and lifetime supervised release after finding, contacting, grooming and sexually exploiting seven minor girls ages 13-to-17 using a variety of social media platforms.
According to court documents, on November 20, 2016, the mother of one of Otto’s minor victims contacted the Sonora Police Department in Sonora, California to report that her fifteen-year-old daughter had been communicating on Instagram with an unknown adult male. An analysis of the victim’s chat log revealed that she had engaged in highly sexual conversations with another Instagram user and, when prompted, sent the user nude photos of herself. Investigators linked the subject’s Instagram account to Otto using the IP address of his home in Tigard.
Following execution of a search warrant at the Tigard residence, investigators analyzed the data on Otto’s seized digital devices and discovered six additional minor victims located around the country. FBI agents, in cooperation with local officials, then sought to locate and interview the victims. The victims described similar crimes, in which Otto contacted them on social media or via the internet and, having built rapport with them, directed them to produce and send him images and videos of child pornography.
On February 6, 2018, Otto pleaded guilty to one count of production of child pornography.
This case was investigated by FBI Portland’s Child Exploitation Task Force (CETF) and Sonora Police Department and was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
FBI Portland CETF conducts sexual exploitation investigations—many of them undercover—in coordination with other federal, state, and local law enforcement agencies. The CETF is committed to locating and arresting those who prey on children as well as recovering underage victims of sex trafficking and child exploitation.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at www.fbi.gov/tips.
Three Convicted at Trial of Sex Trafficking of Minors and OthersRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Dkyle Jamal Bridges, Kristian Jones, and Anthony Jones were convicted of sex trafficking of minors and sex trafficking by force, fraud, and coercion, as well as conspiracy to engage in sex trafficking following a three-week trial.
From 2012 through September 2017, Bridges led a prostitution enterprise in which various women and girls performed commercial sex acts in southeastern Pennsylvania, Delaware, Maryland, and elsewhere for Bridges’ financial benefit. Bridges frequently used violence and threats to cause the female victims to engage in the commercial sex acts. Kristian and Anthony Jones, among others, assisted Bridges in various capacities in running the business, including by recruiting and transporting victims, collecting money, and paying for hotel rooms.
In November 2016, a Tinicum Township police officer stopped a vehicle that had recently left a hotel known to be frequented by individuals engaged in prostitution. The driver admitted to the officer that he had just met a prostitute at the hotel and had arranged the “date” through a website called Backpage.com. Law enforcement went to the room that the customer had visited, and discovered Kristian Jones, two minor girls, condoms, and cell phones containing communications with Bridges about the prostitution business. The room had been rented by Anthony Jones.
That same month, a Newark, Delaware police officer, acting in an undercover capacity, responded to a Backpage.com ad offering commercial sex. When law enforcement arrived at the hotel for the “date,” they found a woman and a girl. In July 2017, the Philadelphia Police conducted a similar undercover operation, and when they arrived for the “date,” they found two adult women in the hotel room and Bridges waiting in his car. All of the victims were fraudulently promised payment by Bridges and once enlisted in his trafficking circle, they were subjected to Bridges’ violent acts or feared him based on observing his violence against others. Thus, all were trafficked by force, fraud, and coercion.
“Bridges’ years of trafficking women and girls by force and manipulation, and with the willing assistance of others, are over,” said U.S. Attorney McSwain. “Sex trafficking is a pervasive problem that demands an aggressive response. We stand ready with our federal partners to identify and dismantle organizations that perpetuate this abuse.”
“That these men felt they had the right to sexually exploit girls and women for money is abhorrent,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “The FBI and our law enforcement partners are working every day to put people like this behind bars and ensure some justice for their victims. We would ask anyone with knowledge of child or adult sex trafficking to let us know about it – anonymously, if need be. Call 1-800-CALL-FBI or go online to tips.fbi.gov.”
The case was investigated by FBI Philadelphia with assistance from the Tinicum Township Police Department; Newark, Delaware Police Department; Delaware State Police; and Philadelphia Police Department and was prosecuted by Assistant United States Attorney Priya DeSouza and Department of Justice Trial Attorney Jessica Urban.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Third Defendant Pleads Guilty to Role in Pharmacy RobberyRead the Press Release
NEWPORT NEWS, Va. – A Lackey man pleaded guilty today to robbery and brandishing a firearm.
According to court documents, Tysean L. Ransome, 25, along with Derrick Johnson, entered the Glendale Pharmacy in Newport News and robbed two employees of prescription pills at gunpoint. A third defendant, Jonathan Williams, directed Ransome and Johnson to do the robbery.
Co-defendants Johnson and Williams each previously pleaded guilty and are scheduled for sentencing in June and July, respectively.
Ransome pleaded guilty to interference with commerce by robbery and brandishing a firearm in furtherance of a crime of violence. He faces a mandatory minimum of 7 years to life on the firearms charge and a maximum sentence of 20 years in prison on the robbery charge when sentenced on July 15. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case 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, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, and Steve R. Drew, Chief of Newport News Police, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea. Managing Assistant U.S. Attorney Howard J. Zlotnick and Assistant U.S. Attorney Lisa R. McKeel are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-6.
Texas Man Sentenced for Role in Complex Nigerian Money Laundering RingRead the Press Release
Tampa, Florida – U.S. District Judge James Moody today sentenced Okechuwku Desmond Amadi (39, Garland, TX), a/k/a Desmond Amadi, to 11 years and 3 months in federal prison for conspiracy to commit money laundering and money laundering. As part of Amadi’s sentence, the court also entered a forfeiture order of $833,625 against him, representing the proceeds of the charged criminal conduct, and ordered Amadi to pay $1,358,500 in restitution to the victims.
A jury had found Amadi guilty on November 7, 2018.
According to the evidence presented at trial, Amadi worked with an international criminal organization based in Nigeria that defrauded dozens of victims across the United States with multiple schemes and then laundered the funds through a complex network of bank accounts. The organization, known as the Neo Black Movement of Africa or the Black Axe Group, coordinated the fraud and money laundering activity around the globe via cells or “zones” in Nigeria, Canada, the United States, and elsewhere.
The Black Axe fraud schemes took several forms. Many of the organization’s victims were widowed or divorced elderly women. Conspirators posed as fake suitors on dating websites to develop relationships with the victims. They then convinced the women to wire money, often consisting of their retirement savings and cash taken out from home equities, to bank accounts in the United States as part of a supposed investment opportunity. The conspirators also defrauded title companies with fake cashier’s checks in phony real estate transactions.
The organization’s victims were instructed to wire their money into funnel accounts held by conspirators in the United States, known as “money mules,” and the funds were then quickly moved to other accounts in the United States and around the world before the victims could discover the fraud. Bank records presented at trial demonstrated that, from 2012 to 2015, several millions of dollars in wire transfers were funneled into Black Axe accounts to be laundered. Amadi, a real estate investor and insurance broker in Texas, used his own bank accounts to launder more than $833,000 in fraud proceeds that victims had sent to accounts controlled by his associate in the Dallas area. Amadi wired much of that money overseas, including to Canada and Nigeria, to promote the conspiracy and conceal the source of the funds.
This case was investigated by the FBI, with assistance from various federal and local law enforcement partners, including the Toronto Police Service (Ontario, Canada) and the Toronto Strategic Partnership. It was prosecuted by Assistant United States Attorneys Patrick Scruggs and Diego Novaes.
Texas Bidder Pleads Guilty to Rigging Bids at Online Auctions for Surplus Government EquipmentRead the Press Release
Marshall Holland, the owner of a Texas company that purchases computers to resell and recycle, pleaded guilty today in connection with an ongoing investigation into a conspiracy to rig bids submitted to the General Services Administration (GSA), the Department of Justice announced.
According to the one-count felony charge filed in the U.S. District Court for the District of Minnesota, Holland conspired with others to rig bids at online public auctions of surplus government equipment conducted by the GSA. Holland is charged with participating in the conspiracy from about February 2017 until as late as May 2018. Holland is the first individual charged in this investigation and he has agreed to cooperate in the Department’s ongoing investigation.
“The Department and its law enforcement partners will not tolerate collusion that corrupts online markets and deprives taxpayers and the federal government of the benefits of competition,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “We will work tirelessly to prosecute online bidders who cheat taxpayers for their own benefit.”
The GSA operates GSA Auctions, which offers the general public the opportunity to bid electronically on a wide variety of federal assets, including computer equipment that is no longer needed by government agencies. GSA Auctions sells that equipment via its online auctions, and the proceeds of the auctions are distributed to the government agencies or the U.S. Treasury general fund. According to the charge, the primary purpose of the conspiracy was to suppress and eliminate competition. Additionally, the co-conspirators obtained the equipment by agreeing which co-conspirators would submit bids for particular lots offered for sale by GSA Auctions and which co-conspirator would be designated to win a particular lot.
“Competition is essential to GSA Auctions,” said Inspector General Carol Ochoa for GSA Office of Inspector General. “GSA OIG will continue to aggressively pursue those who scheme to tip the scales in their favor.”
A criminal violation of Section 1 of the Sherman Act carries a maximum of 10 years in prison and a $1 million criminal fine for individuals. The maximum fines may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The ongoing investigation into bid rigging at GSA auctions is being conducted by the Antitrust Division’s Chicago Office and the GSA Office of Inspector General’s Great Lakes Regional Investigations Office in Chicago, Illinois. Anyone with information concerning bid rigging or fraud related to GSA auctions should contact the Chicago Office of the Antitrust Division at 312-984-7200, the Antitrust Division’s Citizen Complaint Center at 888-647-3258, or visit www.justice.gov/atr/report-violations or email the GSA Office of Inspector General at [email protected]
Stolen I.D., Personal Information Lifted from Victims' Mailboxes in Bank Fraud CaseRead the Press Release
MACON - A Warner Robins man, believed to be the ringleader in a scheme to steal mail to obtain people’s identifying information and use it to make and cash fraudulent checks, has pleaded guilty for his crime, said U.S. Attorney Charles “Charlie” Peeler. Mozell Wright, Jr., 36, of Warner Robins entered a guilty plea for Bank Fraud on April 9, 2019 before The Honorable Tilman E. Self in U.S. District Court in Macon. This charge carries a maximum sentence of 30 years imprisonment, a $1,000,000 fine and five years of supervised release. Mr. Wright is set to be sentenced on June 4, 2019.
According to facts in the signed plea agreement, Mr. Wright, with the assistance of seven other co-defendants, obtained the personal information of a victim and beginning on March 30, 2017 attempted to deposit or cash approximately $15,795.85 worth of fraudulent checks at various banks in Houston County, Georgia from the victim’s bank account until May 17, 2017, the day before Mr. Wright was taken into custody. During this time, Mr. Wright lived in the same neighborhood as the victim in Houston County. Mr. Wright used stolen mail sent to the victim from Bank of America to produce fraudulent checks for his co-defendants to cash. Mr. Wright was arrested on May 18, and following a search of his home, investigators found hundreds of pieces of mail that included identifying information of 23 separate victims, check stock and partially completed personal checks with illegally obtained personal information, financial document printing instructions and gauges for printing documents to scale, a computer with electronic versions of these phony checks and several hand-written notes with bank account and routing numbers. Mr. Wright admitted his guilt following his arrest by the Warner Robins Police Department.
“Our office is committed to combating personal identity theft in the Middle District, and there is no doubt that this defendant intended to scam more citizens using their private information,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “I commend the investigators with the U.S. Postal Service and the Warner Robins Police Department for stopping this fraud.”
Two of Mr. Wright’s co-defendants – Bradley Rumph, Jr. 26, of Warner Robins, and Tara Blanks, 46, of Warner Robins – have also entered guilty pleas on bank fraud charges and are also set for sentencing on June 4, 2019. Charges against the five remaining co-defendants are still pending.
The case was investigated by the United States Postal Inspection Service and Warner Robins Police Department. Assistant U.S. Attorney C. Shanelle Booker is prosecuting the case for the Government.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Statement by U.S. Attorney David C. Joseph on church burnings in St. Landry ParishRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph issued the following statement:
“A suspect has been identified in connection with the three church burnings in Opelousas, Louisiana, and is in state custody. The U.S. Attorney’s Office, ATF, and FBI are working with state and local law enforcement and stand shoulder-to-shoulder with the victims and those St. Landry Parish residents affected by these despicable acts. A special thanks to St. Landry Parish Sheriff Bobby Guidroz, Louisiana State Fire Marshal, H. “Butch” Browning Jr., Louisiana Attorney General Jeff Landry’s Cybercrime Unit, the Louisiana State Police, and the Florida State Fire Marshal for working seamlessly with federal law enforcement agents in this investigation.”
St. Thomas Man Pleads Guilty to Possession of an A-15 Rifle with an Obliterated Serial NumberRead the Press Release
St. Thomas, USVI – Arthur Greaves, Jr., 19, of St. Thomas, pleaded guilty in District Court before Judge Curtis Gomez, to possession of a firearm with an obliterated serial number, United States Attorney Gretchen C.F. Shappert announced.
According to court documents, on May 17, 2018, Greaves pointed an A-15 rifle at an individual as the individual and his four year-old son attempted to enter a residence on Garden Street. Greaves grabbed a gold chain from the individual’s neck and ran to a building on Bunker Hill where responding officers discovered him hiding under a stairwell. Greaves directed the officers to an adjacent abandoned building to reveal the rifle, a .22 cal. DPMS model A-15 with its serial number removed along with a double stack magazine and cartridges.
Greaves faces a minimum sentence of 10 years incarceration, a period of supervised release of not more than three years, and a maximum fine of $250,000. His sentencing is scheduled for August 15, 2019.
This case was investigated by the Virgin Islands Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Everard E. Potter.
Springdale Man Sentenced to 14 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Christopher McCarty, age 44, of Springdale, Arkansas, was sentenced today to 168 months in federal prison followed by five years of supervised release, and a fine of $7,400.00, for one count of Possession of Methamphetamine with Intent to Distribute. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in July 2018, the Springdale Police Department Narcotics Unit identified McCarty as a distributor of methamphetamine in Northwest Arkansas. Investigators arranged and conducted two controlled purchases of methamphetamine from McCarty. After the controlled purchases, information was obtained that McCarty was bringing methamphetamine to Northwest Arkansas from a supplier in the Little Rock area. As part of the investigation, a traffic stop was conducted by Arkansas State Troopers on McCarty’s vehicle as a result of traffic violations on Interstate 49. During the traffic stop, officers located a taped bundle of suspected methamphetamine lying in a ditch near where McCarty’s vehicle was stopped. A subsequent review of the state trooper’s dash cam video showed, the bundle being thrown from McCarty’s vehicle as it was being pulled over. The substance recovered was submitted to the DEA crime laboratory for testing, and the results confirmed that the substance contained approximately 110 grams of actual methamphetamine.
McCarty was indicted by a federal grand jury in July 2018, entered a guilty plea in December 2018.
This case was investigated by the Springdale Police Department Narcotics Unit. Assistant United States Attorney Sydney Butler prosecuted the case for the United States.
Spokane Man Sent to Prison for Traveling to Idaho to Have Sex with MinorRead the Press Release
COEUR D’ALENE – Jesse Lauren Van Orsow, 29, of Spokane, Washington, was sentenced yesterday in federal court to 37 months in prison for travel with intent to engage in illicit sexual conduct with a minor, U.S. Attorney Bart M. Davis announced. Van Orsow was sentenced by U.S. District Judge David C. Nye at the federal courthouse in Coeur d’Alene. Van Orsow pleaded guilty on August 21, 2018.
According court records, in August 2017, Van Orsow exchanged email and text messages with an undercover police officer posing online as a thirteen-year-old female. In these messages, Van Orsow wrote that he wanted to have sex with the minor. On August 25, 2017, Van Orsow traveled from Spokane to Idaho to have sex with the person he believed to be a thirteen year-old female. Officers arrested Van Orsow when he arrived in Idaho.
Following his 37-month prison sentence, Judge Nye ordered Van Orsow to serve seven years on supervised release.
This case was investigated by Homeland Security Investigations with the assistance of the Federal Bureau of Investigation, Kootenai County Prosecutor’s Office, U.S. Marshals Service, Coeur d’Alene Police Department, and Washington Southeast Regional Internet Crimes Against Children Task Force.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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South Carolina U.S. Attorney Announces Operation Dismantling One of the Largest Medicare Fraud Schemes in HistoryRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today one of the largest health care fraud schemes in the history of the Federal Bureau of Investigation (FBI), the Department of Health and Human Services Office of the Inspector General (HHS-OIG), and the Internal Revenue Service Criminal Investigation Division (IRS-CID). The announcement was made at a press conference at Palmetto GBA in Columbia, South Carolina, a Medicare administration contractor whose payment safeguarding services seek to eliminate Medicare abuse, fraud, and waste.
Operation Brace Yourself, which originated in South Carolina, has resulted in the execution of over 80 search warrants in 17 federal districts and charges against 24 defendants so far. These defendants include owners, managers, and others associated with six telemedicine companies, the owners of dozens of durable medical equipment (DME) companies, and three licensed medical professionals. The alleged health care fraud scheme involves more than $1 billion in loss.
“Simply put, the law applies equally to all in South Carolina,” said U.S. Attorney Lydon. “The same spoon that serves indictments on drug dealers, felons in possession of firearms, and corrupt officials will also feed those companies and individuals who engage in Medicare fraud. White collar crime is not victimless. All taxpayers will endure the rising cost of health care premiums and out-of-pocket costs as a result of fraud on our Medicare system. I am honored to stand with our partners at the FBI, HHS-OIG, and IRS-CID, who led this outstanding and nationally significant investigation from right here in South Carolina.”
“This case demonstrates the ability of the FBI in South Carolina to successfully investigate the most expansive and complex of investigations. Wherever facts take us, the FBI is always ready to pursue perpetrators and bring them to justice,” said FBI Special Agent in Charge Jody Norris.
“Health care fraud schemes, such as the massive, sweeping operations charged here, divert desperately needed funding from government health programs and the people they serve,” said Derrick Jackson, Special Agent in Charge, Department of Health and Human Services Office of Inspector General for the region including South Carolina. “Working closely with our law enforcement partners we are dedicated to disrupting schemes of health care organization owners, managers, licensed medical professionals, and others intent on enriching themselves at the expense of U.S. taxpayers. All contemplating such ill-gotten gains should expect aggressive investigation and prosecution.”
“The American tax system is designed to provide vital government services to our citizens. It is not a slush fund for thieves and fraudsters,” said IRS-CID Special Agent in Charge Matthew D. Line. “IRS Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes where individuals attempt to conceal the true source of funds. We stand committed with our partners to pursue and prosecute those involved to the fullest extent of the law.”
“Palmetto GBA is committed to assisting law enforcement and other agencies in their efforts to identify and prevent Medicare fraud. Protecting the Medicare program from fraud is important to all of us, including the seniors that rely on Medicare for their health benefits, the providers that furnish their care, and the taxpayers who pay for it,” said Palmetto GBA President and COO Joe Johnson.
The charges announced today aggressively target an entire scheme of health care fraud, from the initial kickback through the billing of Medicare. The alleged scheme began with payments of kickbacks by DME companies to an offshore call center. The call center purchased advertisements that targeted Medicare beneficiaries. The calls were routed overseas and to call centers run by members of the conspiracy. The call centers “up-sold” the beneficiaries to get them to accept numerous “free or low-cost” DME braces, regardless of medical necessity. The caller was then routed to medical professionals working with fraudulent telemedicine companies for back, shoulder, wrist and knee braces that were often medically unnecessary.
Certain members of the conspiracy allegedly controlled an international telemarketing network that lured over hundreds of thousands of elderly or disabled patients into a criminal scheme that crossed borders. They allegedly paid doctors to prescribe DME either without any patient interaction or with only a brief telephonic conversation with patients they had never met or even set eyes on. The physicians’ “prescriptions” were then sent back to the call center, which provided the “prescription” and other information to the DME companies. Two dropship companies that were indicted would then ship low-cost Chinese made braces to the Medicare patients. The DME companies would then fraudulently bill Medicare. The proceeds of the scheme were laundered through international shell corporations and used to purchase exotic automobiles, yachts, and luxury real estate.
In the District of South Carolina, charges were brought against Andrew Chmiel, 43, of Mt. Pleasant, South Carolina, and companies in which he had an ownership interest—including 10 DME companies, two dropship companies, and two additional companies that facilitated the fraud—for their alleged participation in a $200 million scheme related to the payment of kickbacks and bribes in exchange for medically unnecessary DME orders. The charges are the result of an extensive investigation by the FBI, HHS-OIG, and IRS-CID. The case is being prosecuted by Assistant U.S. Attorneys Jim May and Will Lewis of the Columbia office.
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Six More Defendants Sentenced for Embezzlement from the Ute Mountain Ute TribeRead the Press Release
DURANGO -- After a 3-year investigation into the embezzlement of funds from the Ute Mountain Ute Tribe, 16 defendants have been convicted and sentenced for their illegal conduct to include each defendant participating in taking a substantial amount of money from the tribe that was not due to them, announced U.S. Attorney Jason Dunn, FBI Denver Division Special Agent in Charge Dean Phillips and IRS-Criminal Investigation Denver Field Office Special Agent in Charge Steven Osborne. Of these defendants, 11 were Ute Mountain Ute (UMU) tribal members; 5 were not. Of the 16 sentenced 6 defendants were sentenced this week by U.S. District Court Judge Robert E. Blackburn who was sitting in Durango.
According to court filings as well as arguments made in open court, from at least 2011 through October 2015, Ute Mountain Ute tribal members were entitled to receive utility benefits from the tribe to pay their utility expenses in annual amounts from $1,200 to $1,500. Bills or other documentation were required to be submitted along with the application to the tribe's Financial Services Department for processing and payment to the tribal members. Additionally during the same time period, UMU tribal members had family plan accounts established when the tribal members were children and from which the members could start spending the funds once they reached 18 years of age. The funds in the family plan accounts, with accrued interest, usually reached approximately $10,000 by the time a member reached 18 years old. These funds could be used to purchase things such as vehicles, home furnishings, and computers. As with the utility benefits, the tribal member was required to provide invoices or other documentation to UMU's Financial Services Department in order to request payment from the family plan account.
Beginning in at least 2011, certain employees of the tribe's Financial Services Department caused fraudulent tribal checks to be generated in the names of people selected by the employees. The people receiving the checks cashed the checks and usually shared the cash with the Financial Services Department employee who provided the check. Initially, these fraudulent checks were falsely attributed to the utility benefits or family plan accounts of tribal members who did not request or receive the fraudulent checks. Later, the fraudulent checks were generated without being attributed to any tribal member. At least 5 of the people who received the fraudulent checks were not tribal members and were not entitled to any tribal benefits. 6 of the defendants sentenced to date were employees in the tribe’s Financial Services Department.
In other instances, the Financial Service Department employees caused embezzled tribal funds to be sent via Western Union to selected recipients who would in turn provide a portion of the money back to the employee who sent the wire. Defendant Oraleigh Jaramillo also caused embezzled tribal funds to be wired to inmates with the Federal Bureau of Prisons who were not UMU tribal members and not entitled to any UMU tribal funds.“This was a complex case with many defendants and a large amount of money,” said U.S. Attorney Jason Dunn. “But we in federal law enforcement have a sacred trust with members of the tribal community and we take that delegation seriously. Where public corruption exists within the tribes, we will work tirelessly to root it out and to hold accountable those responsible.”
“The FBI aggressively investigates crimes that occur against Native American Tribes. The sentencing of the defendants in the Ute Mountain Ute Tribe investigation should send a strong message to anyone considering engaging in white collar fraud schemes,” said FBI Denver Special Agent in Charge Dean Phillips. “The FBI will continue to work with our law enforcement counterparts and United States Attorney’s Office to protect our citizens and economy from those engaged in this type of crime. We would like to thank the IRS for their partnership on this case."
“Today’s sentencings demonstrate our collective efforts to enforce the law and ensure public trust,” said Steven Osborne, Special Agent in Charge, Denver Field Office. “IRS Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes where individuals abuse their positions of trust to unjustly enrich themselves.
Those sentenced this week as part of this case include:
- Gloria Lee, aka Gloria Rouillard, aka Gloria Lopez – sentenced to 26 months in federal prison, followed by 3 years of supervised release for embezzlement of funds belonging to an Indian tribal organization and money laundering, which includes a restitution order of $1,139,996;
- Oraleigh Jaramillo aka Oraleigh Hammond – sentenced to 14 months in federal prison, followed by 3 years of supervised release for embezzlement of funds belonging to an Indian tribal organization and money laundering, which includes a restitution order of $309,537;
- Shirley Ann Deer – sentenced to 15 months in federal prison, followed by 3 years of supervised release for embezzlement of funds belonging to an Indian tribal organization and money laundering, which includes a restitution order of $209,552.47;
- Terry Jason Arnold – sentenced to 12 months and a day in federal prison, followed by 3 years on supervised release for wrongful receipt of funds belonging to an Indian tribal organization, which includes a restitution order of $140,235.55;
- Classia Rose Hammond – sentenced to 3 months in federal prison followed by 3 months home confinement as part of 3 years on supervised release for receipt of willfully misapplied funds belonging to an Indian tribal organization, which includes a restitution order of $65,508.56;
- Terry Lynn Whiteman – sentenced to 3 months in federal prison followed by 3 months of home confinement as part of 3 years on supervised release for misapplication of funds belonging to Indian tribal organizations, which includes a restitution order of $44,214.01; and
Those previously sentenced as a part of this case include:
- Maurice Nat – sentenced to 41 months in federal prison, to be followed by 3 years on supervised release for receipt of funds belonging to an Indian tribal organization, which includes a restitution order of $136,575;
- Darrell Jonah Lee – sentenced to 15 months in federal prison, to be followed by 3 years on supervised release for receipt of funds belonging to an Indian tribal organization, which includes restitution of $142,411;
- Kevin Ryan Lee – sentenced to 5 months in prison, to be followed by 3 years on supervised release for receipt of funds belonging to an Indian tribal organization, which includes restitution of $89,132;
- Leslie Rouillard – sentenced to 5 months in prison, to be followed by 3 years on supervised release for receipt of funds belonging to an Indian tribal organization, which includes a restitution order of $83,796.09;
- Freana Bancroft – sentenced to 4 months in prison, plus 4 months home detention as part of 3 years on supervised release for receipt of funds belonging to an Indian tribal organization, which includes a restitution order of $109,820;
- Jennifer Ann Pioche – 4 months in prison followed by 4 months home detention as part of 3 years on supervised release for receipt of funds belonging to an Indian tribal organization, which includes restitution of $106,497.
- Colindra House – sentenced to 3 months in prison, plus 3 months home detention as part of 3 years on supervised release for receipt of funds belonging to an Indian tribal organization, which includes a restitution order of $52,401;
- Loia K. House – sentenced to 3 years probation for illegal receipt of funds belonging to an Indian tribal organization, which includes a restitution order of $22,190;
- Myreon Lehi – sentenced to 3 years probation for illegal receipt of funds belonging to an Indian tribal organization, which includes restitution of $23,280;
- Ladelda Lopez aka Ladelda Box – 3 years probation for illegal receipt of funds belonging to an Indian tribal organization, which includes restitution of $34,823.
The investigation began in October of 2015 and is expected to conclude soon. The FBI and IRS-CI conducted the investigation which was prosecuted by Assistant U.S. Attorney Pegeen Rhyne.
Shreveport felon sentenced to 57 months in prison for possessing pistolRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today that Dennis Lee Richardson, 29, of Shreveport, was sentenced to four years and nine months in prison by Chief U.S. District Judge S. Maurice Hicks Jr. for possessing a semi-automatic pistol. He was also sentenced to three years of supervised release.
On June 29, 2018, law enforcement agents executed a search warrant at a Prentiss Street residence. As the agents approached the home, they saw Richardson and his girlfriend sitting in a parked car in the driveway. The agents also observed a loaded Glock semi-automatic pistol with an extended clip on the floorboard behind the front passenger seat. Richardson is a convicted felon who pleaded guilty on March 10, 2014 in Caddo Parish for attempted illegal carrying of weapons while in possession of a controlled dangerous substance. Under federal law, felons are not allowed to possess a firearm or ammunition. He pleaded guilty to the federal firearms charge on December 11, 2018.
The ATF and the Caddo-Shreveport Narcotics Task Force conducted the investigation. Assistant U.S. Attorneys Jessica D. Cassidy and Earl M. Campbell prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Shreveport felon pleads guilty to possessing pistolRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today that Earl Vinson III, 20, of Shreveport, pleaded guilty before U.S. District Judge Elizabeth E. Foote for possession of a firearm by a convicted felon.
According to the guilty plea, Shreveport police made contact with Vinson on April 24, 2018 outside a restaurant after receiving a call regarding him being a possible suspect in an automobile burglary. The officers found that Vinson was in possession of a Keltec .380-caliber pistol. Vinson admitted that he knew he was not allowed to have a firearm as a convicted felon. He was convicted on December 18, 2017 in state court for accessory after the fact to armed robbery. Under federal law, it is illegal for felons to possess a firearm or ammunition.
Vinson faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for July 29, 2019.
The ATF and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath is prosecuting the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Sex, Money, Murder Gang Members and Associates Sentenced for Drug ConspiracyRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge Louise W. Flanagan sentenced markell desetten wiggins, also known as “Kell,” 33, of Scotland Neck, North Carolina to 86 months imprisonment, followed by 5 years of supervised release.
WIGGINS was the last of seven members and associates of the Sex, Money, Murder (SMM) Scotland Neck-area United Blood Nation street gang to be sentenced in a drug conspiracy spanning from 2012 to June 27, 2017. The seven members were named in a fifteen-count indictment filed on June 27, 2017 charging them with conspiracy to distribute and possession with the intent to distribute heroin; distribution and possession with the intent to distribute a quantity of heroin, and aiding and abetting; possession with the intent to distribute a quantity of heroin; distribution of a quantity of heroin; and felon in possession of a firearm.
WIGGINS was charged with conspiracy to distribute and possess with the intent to distribute one hundred grams or more of heroin and pled guilty to such charge on February 13, 2018. WIGGINS received sentencing enhancements as a leader in the conspiracy and for obstruction of justice by using someone under the age of 18 years old to assist in avoiding detection or apprehension.
BO’NEKA SARELL McDANIEL, 29, of Scotland Neck, North Carolina, was charged with conspiracy to distribute and possess with the intent to distribute one hundred grams or more of heroin. McDANIEL pled guilty to that charge on October 2, 2017. On February 21, 2018 McDANIEL was sentenced to 62 months’ imprisonment and 4 years supervised release. McDANIEL was sentenced as a leader based upon her position in the conspiracy.
REGINALD SAVAGE, aka “Whimp,” 49, of Scotland Neck, North Carolina was charged with conspiracy to distribute and possess with the intent to distribute a quantity of heroin. SAVAGE pled guilty to that charge on September 13, 2017. On April 3, 2018, SAVAGE was sentenced to 14 months’ imprisonment and 3 years supervised release.
COLLIN LEE WHITAKER JR., also known as “BJ,” 25, of Greenville, North Carolina, was charged with conspiracy to distribute and possess with the intent to distribute a quantity of heroin. WHITAKER pled guilty to that charge on September 13, 2017. On January 11, 2018, WHITAKER was sentenced to 12 months’ imprisonment and 3 years supervised release.
KEVIN DWAYNE CARSWELL, aka “K Rock,” 31, of Scotland Neck, North Carolina, was charged with conspiracy to distribute and possess with the intent to distribute a quantity of heroin. CARSWELL pled guilty to that charge on September 13, 2017. On May 23, 2018, CARSWELL was sentenced to 37 months’ imprisonment and 3 years supervised release. CARSWELL received a sentencing enhancement for his possession of a firearm during the conspiracy.
DANTEE BROWN, aka “Tay,” 37, of Tarboro, North Carolina, was charged with conspiracy to distribute and possess with the intent to distribute a quantity of heroin. BROWN pled guilty to that charge on September 13, 2017. On January 11, 2018, BROWN was sentenced to 30 months’ imprisonment and 3 years supervised release. BROWN received enhancements in his sentence for his possession of a firearm and use of violence during the drug conspiracy.
SHANTA VENITA HINES, 31, of Scotland Neck, North Carolina, was charged with conspiracy to distribute and possess with the intent to distribute a quantity of heroin. HINES pled guilty to that charge on November 14, 2017. On February 21, 2018, HINES was sentenced to 3 years probation.
According to the investigation, the seven abovementioned individuals were members and affiliates of SMM and they distributed large quantities of heroin, cocaine, crack cocaine, and marijuana in and around the Halifax County area. The defendants were supplied heroin from sources in New Jersey. When one of their gang leaders was arrested, the members increased their drug trafficking activities as a mechanism to raise money. McDANIEL was not a member of the gang, but sold drugs on behalf of the gang to raise money for one of the gang’s leaders, which was her relative. McDANIEL sold 2,700 bags of heroin. McDANIEL’s boyfriend, SAVAGE, also assisted in the conspiracy and sold 2,650 bags of heroin. BROWN was a high ranking gang member that admitted to robbing others of drugs. CARSWELL recruited his girlfriend, HINES, to assist in the drug conspiracy. Law enforcement observed HINES selling drugs to a confidential informant in the presence of her young child.
The investigation of this case was conducted by the Drug Enforcement Administration, Federal Bureau of Investigation, the Tar River Regional Drug Task Force, a multi-agency task force, North Carolina Alcohol Law Enforcement, Edgecombe County Sheriff’s Office, Halifax County Sheriff’s Office, Pinetops Police Department, Scotland Neck Police Department, Tarboro Police Department, Rocky Mount Police Department, and Nash County Sheriff’s Office. Assistant United States Attorney Dena King represented the government.
Seven Guilty in Forest Park Healthcare Fraud TrialRead the Press Release
Following four days of deliberations, a federal jury returned guilty verdicts for seven individuals implicated in the Forest Park Medical Center bribery scheme Tuesday evening, announced U.S. Attorney Erin Nealy Cox.
Wilton McPherson “Mac” Burt, Jackson Jacob, Douglas Sung Won, Michael Bassem Rimlawi, Shawn Mark Henry, Mrugeshkumar Shah, and Iris Kathleen Forrest were all convicted of conspiracy to pay or receive healthcare bribes.
“The verdict in the Forest Park case is a reminder to healthcare practitioners across the District that patients – not payments – should guide decisions about how and where doctors administer treatment,” said U.S. Attorney Nealy Cox. “We are grateful to the Forest Park jury, 12 men and women who listened attentively through seven long weeks of trial. It’s obvious from the verdict that they deliberated each charge carefully, and we appreciate their service.”
Ten other defendants had already pleaded guilty in the $200 million scheme, designed to induce doctors to steer lucrative patients – particularly those with high-reimbursing, out-of-network private insurance – to the now defunct hospital.
Most of the kickbacks, which totaled more than $40 million, were disguised as consulting fees or “marketing money” doled as a percentage of surgeries each doctor referred to Forest Park.
Instead of billing patients for out-of-network co-payments, instituted by insurers to de-incentivize the high costs associated with out-of-network treatment, Forest Park allegedly assured patients they would pay in-network prices. Because they knew insurers wouldn’t tolerate such practices, they concealed the patient discounts and wrote off the difference as uncollected “bad debt.”
Hospital manager Alan Beauchamp, who testified for the government, admitted that Forest Park “bought surgeries,” and then “papered it up to make it look good.”
The verdict was as follows:
Mr. Burt, Forest Park’s managing partner, was found guilty on 10 of 12 counts, including one count of conspiracy, two counts of paying kickbacks, six counts of commercial bribery in violation of the Travel Act, and one count of money laundering. He faces up to 65 years in federal prison.
Mr. Jacob, owner of the shell companies through which some of the bribes were routed, was found guilty on four of 14 counts, including conspiracy and three counts of paying kickbacks. He faces up to 20 years in federal prison.
Dr. Won, a spinal surgeon, was found guilty on one of two counts, conspiracy. He faces up to 5 years in federal prison.
Dr. Rimlawi, a spinal surgeon who partnered with Won, was found guilty on three of four counts, including conspiracy and two counts of receiving kickbacks. He faces up to 15 years in federal prison.
Dr. Henry, a spinal surgeon who invested in FMPC, was found guilty on three of three counts, including conspiracy, commercial bribery, and money laundering. He faces up to 30 years in federal prison.
Dr. Shah, a pain management doctor, was found guilty on four of four counts, including conspiracy, two counts of paying kickbacks, and one count of commercial bribery. He faces up to 20 years in federal prison.
Ms. Forrest, a nurse who recruited and preauthorized worker’s comp requests, was convicted on two of two counts, including conspiracy and paying kickbacks. She faces up to 10 years in federal prison.
Dr. William Daniel “Nick” Nicholson, a bariatric surgeon who invested in FPMC, was found not guilty on all three counts against him.
The jury could not come to a verdict as to Ms. Carli Adele Hempel, and the judge declared a mistrial for her.
Defendants who pleaded guilty before the case went to trial include: Alan Andrew Beauchamp, Richard Ferdinand Toussaint, Jr., Wade Neal Barker, Kelly Wade Loter, David Daesung Kim, Israel Ortiz, Andrea Kay Smith, Frank Gonzales, Jr., Andrew Jonathan Hillman, and Semyon Narosov.
Sentencing dates for convicted defendants have not yet been set.
The case was investigated by the U.S. Office of Personnel Management Office of Inspector General, the Federal Bureau of Investigation, the U.S. Department of Labor Office of Inspector General, the U.S. Department of Labor Employee Benefits Security Administration, the U.S. Department of Defense - Defense Criminal Investigative Service, and Internal Revenue Service Criminal Investigation, with assistance from the Food and Drug Administration Office of Criminal Investigations.
Assistant U.S. Attorneys Andrew Wirmani, Kate Pfeifle, Marcus Busch, Mark Tindall and Gail Hayworth are prosecuting the case.
Schuylkill County Man Sentenced to 64 Months’ Imprisonment for Money Laundering and Identity TheftRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on April 5, 2019, United States District Court Judge A. Richard Caputo sentenced Mario M. Valentine, age 35, of Shenandoah, Pennsylvania, to 64 months’ imprisonment and three years of supervised release, for money laundering and identity theft.
According to United States Attorney David J. Freed, from approximately January 2013 through May 2015, Valentine and his co-defendant, Carrie Aker, laundered over $218,000 of credit card fraud proceeds by using forged credit cards to purchase gift cards and other items, and then selling those items or converting them into cash. Valentine and Aker were charged with committing nearly $270,000 worth of credit card fraud, using forged credit cards that they created. Valentine also was convicted of using other individuals’ stolen identities during the course of his fraud. The defendants admitted to continuing their fraudulent activities, even after being confronted by law enforcement officials.
During Valentine’s sentencing, Judge Caputo determined that Valentine had lied under oath at an evidentiary hearing, warranting an enhanced sentencing guidelines calculation for his obstructive conduct. Judge Caputo emphasized the serious nature and extent of the offense, labeling it a “21st century crime.” Judge Caputo ordered Valentine to pay $269,575.35 in restitution to the victims of his crimes.
Valentine’s co-defendant, Carrie Aker, has pleaded guilty and is awaiting sentencing.
The investigation was conducted by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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Sampson County Meth Dealer Received Eight and Half Years in Federal PrisonRead 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 ERIC HERNANDEZ, 24, of Sampson County to 102 months’ imprisonment, followed by 4 years of supervised release. On November 19, 2018, HERNANDEZ pled guilty to Conspiracy to Distribute 50 grams or more of Methamphetamine and 2 counts of Possession with Intent to Distribute a Quantity of Methamphetamine.
On January 7, 2015, Sampson County Sheriff’s Deputies responded to a drive-by shooting at a residence in Garland North Carolina. Law enforcement searched a residence associated with the victim and found HERNANDEZ present inside the house. Law enforcement found a jar containing an ounce of methamphetamine in an air vent and a handgun near the back door. HERNANDEZ’S fingerprints were on the jar.
On February 15, 2018, a Sampson County Sheriff’s Deputy conducted a traffic stop on a car being driven by HERNANDEZ. The deputy searched the car after he smelled an odor of marijuana. A search of the trunk uncovered more than an ounce of methamphetamine. Law enforcement conducted a search of HERNANDEZ’S residence in Sampson County. An ounce of methamphetamine was found in a shed and more than $3,500 was located in HERNANDEZ’S bedroom. HERNANDEZ was on supervised release by the state for Discharging a Weapon into an Occupied Property and Possession of a Firearm by a Convicted Felon at the time of this arrest.
This case is part of an extensive investigation by a DEA led Organized Crime Drug Enforcement Task Force (OCDETF) operation named “Fall of the House of Usher”. The investigation is focused on the importation and distribution of methamphetamine from outside North Carolina to New Hanover, Duplin, and Sampson Counties.
This case is also part of the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Drug Enforcement Administration, the Federal Bureau of Investigations, the State Bureau of Investigations and the Duplin, New Hanover and Sampson County Sheriff’s Offices. Assistant United States Attorney Timothy Severo prosecuted the case on behalf of the government.
Salvadoran National Pleads Guilty to Failing to Register as a Sex Offender and Unlawful ReentryRead the Press Release
BOSTON – A previously deported Salvadoran national pleaded guilty in federal court in Boston yesterday to failure to register as a sex offender and unlawful reentry of a deported alien.
Oscar Alfaro, 47, who is currently in state custody in connection with sexual assault charges stemming from a 2016 incident in Newbury, pleaded guilty to one count of failure to register as a sex offender and one count of unlawful reentry of a deported alien. U.S. District Court Judge Richard G. Stearns scheduled sentencing for July 31, 2019.
In 2008, Alfaro was convicted in Virginia state court of taking indecent liberties with a child. As a result, Alfaro is required to register as a sex offender in any jurisdiction where he lives or works. After serving a sentence for his 2008 conviction, Alfaro was deported.
At some point following his deportation, Alfaro illegally reentered the United States. In March 2016, it was reported that Alfaro had committed an indecent assault and battery, which qualifies as a sex offense under Massachusetts state law. After the assault was reported, Alfaro left Massachusetts. The U.S. Marshals Service located and apprehended Alfaro in Virginia in November 2017 and returned him to Massachusetts to face state sexual assault charges.
Failing to register as a sex offender provides for a sentence of no greater than 10 years in prison and a minimum of five years and up to a lifetime supervised release. Unlawful reentry provides for a sentence of no greater than 20 years in prison and three years of supervised release. Both offenses carry a fine of up to $250,000. Alfaro will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Rogers Man Sentenced to 10 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Henry Velasco, age 31, of Rogers, Arkansas, was sentenced today to 120 months in federal prison, followed by four years of supervised release, and a $1,900.00 fine for one count of Possession with Intent to Distribute of more than 50 grams of Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, the Springdale Police Department Narcotics Unit received information that Velasco was distributing methamphetamine while staying at the Executive Inn in Springdale, Arkansas. Investigators conducted surveillance on Velasco at the Executive Inn. When Velasco exited the motel room, he was carrying a backpack, which contained three bags of methamphetamine, 50.5 grams of marijuana, 13 LSD tablets, and $1,240.00 in cash. After being read his Miranda rights, Velasco, admitted that the contents of the backpack belonged to him, and that he had stayed two nights at the motel. The substance recovered was sent to the DEA Crime Lab and was confirmed to contain 51.1 grams of actual methamphetamine.
Velasco was indicted by a federal grand jury in July 2018, entered a guilty plea in November 2018.
This case was investigated by the Springdale Police Department Narcotics Unit. Assistant United States Attorney Amy Driver prosecuted the case for the United States.
Rhode Island Man Indicted for Defrauding Investors and Tax EvasionRead the Press Release
A federal grand jury in Rhode Island indicted a Rhode Island man yesterday on multiple counts of wire fraud, money laundering, and tax evasion after allegedly running decade-long schemes to defraud investors and the United States Treasury, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Aaron Weisman for the District of Rhode Island.
According to the indictment, between 2008 and 2018, Thomas Huling of West Warwick, Rhode Island, 55, formerly a mortgage broker, orchestrated a scheme to defraud investors by promoting several investment projects, including offshore high-yielding bond trading platforms, a car emissions reduction technology, and an online advertising and marketing company. Huling allegedly solicited funds for these investments by representing, among other things, that the money would be used for the particular project, and that the investments would achieve substantial returns - with little or no risk - within a short period of time. The indictment alleges that to enhance his credibility and build trust, Huling incorporated religion and the possibility of charitable good works into his sales pitch, and would claim association with well-known individuals who in turn had an interest in his investments.
In truth, and contrary to the representations and promises he made to investors, the indictment alleges that Huling used investor monies to support his lifestyle that included purchases of high-end luxury vehicles, membership and golf fees at multiple country clubs, clothes and fashion, food and restaurants, vacations and travel, and improvements to his residence.
The indictment further alleges that when investors contacted him with concern about the status of their investment, Huling lulled them with false and fraudulent excuses and promises to string them along, and other times refused and avoided calls. To appease certain investors, Huling allegedly used money raised from new investors to pay off the earlier investors. To conceal the source and disposition of funds, the indictment alleges that Huling established multiple shell companies and more than 50 bank accounts to deposit, commingle, withdraw, and transfer funds.
In all, Huling’s fraud scheme against investors allegedly yielded approximately $14 million in funds raised from investors, causing a loss to investors of more than $6 million.
The indictment further alleges that while defrauding investors Huling also defrauded the United States by evading taxes. It charges that between 2009 and April 2018, while living his lifestyle through millions in personal expenditures using the investors’ funds, Huling reported no taxable income, paid no income taxes, and committed multiple affirmative acts in an effort to conceal his income and mislead the IRS. As part his tax evasion scheme, Huling allegedly filed false and fraudulent individual and corporate income tax returns, used multiple nominee entities and bank accounts to conceal income, used corporate account debit cards to pay for personal expenses, used cash extensively, manipulated the books and records of his purported companies to record sham loans so as to conceal personal expenditures and income, titled personal assets in the name of shell companies, and lied to IRS special agents concerning his income, expenses, and business activities. Allegedly, while specifically evading the assessment of his 2009 through 2011, 2012, and 2016-2017 taxes, Huling also evaded payment of his 2007 taxes.
If convicted, Huling faces a statutory maximum sentence of twenty years in prison for each wire fraud charge, ten years in prison for each money laundering charge, and five years in prison for each tax evasion charge. Huling also faces a potential period of supervised release, substantial fines and penalties, and orders of restitution and forfeiture.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Weisman thanked special agents of IRS-Criminal Investigation and the FBI and an IRS revenue agent, who all investigated the case. They also thanked Assistant Chief John N. Kane, Jr. of the Tax Division and Assistant United States Attorney Sandra Hebert, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Rhode Island Man Facing 15 - 40 Years in Prison on Child Pornography ChargesRead the Press Release
PROVIDENCE – A former North Providence and Pawtucket resident found to be in possession of electronic storage devices containing more than 11,400 images of child pornography, including videos he produced that depict him sexually assaulting a minor female, is facing between 15-40 years in federal prison, having pleaded guilty on Tuesday to production and possession of child pornography.
Robert Barrie, 41, was arrested in May 2015 and in July 2017 by members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force after investigators discovered him sharing child pornography through online peer-to-peer networks from his then North Providence and Pawtucket residences, respectively.
Barrie’s arrest in July 2017 occurred while he was awaiting trial in Rhode Island state court on the child pornography charges brought in March 2015.
Barrie’s guilty plea in U.S. District Court to charges of production of child pornography and possession of child pornography is announced by United States Attorney Aaron L. Weisman, Superintendent of the Rhode Island State Police Colonel James M. Manni, and Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh.
According to information presented to the Court, on May 7, 2015, members of the ICAC Task Force executed a court-authorized search of Barrie’s then North Providence residence. Several electronic devices were seized. Based on statements made to law enforcement by Barrie and evidence viewed during the court-authorized search, Barrie was arrested and charged in state court with possession of child pornography. About three weeks later, as investigators continued a forensic audit of Barrie’s electronic devices, investigators discovered a video which depicted Barrie sexually assaulting a minor female. Barrie was re-arrested by members of the ICAC task force on child molestation charges and released on bail following his arraignment.
In July 2017, while the state charges were still pending against Barrie, ICAC members observed peer-to-peer Internet traffic of child pornography files being shared from an IP address at a Pawtucket residence. When members of the ICAC task force arrived at the residence they learned that it was the then residence of Robert Barrie. Electronic devices seized from Barrie were found to contain child pornography.
Forensic examinations of all of the electronic devices seized from Barrie revealed approximately 11,450 images and videos of child pornography, including a video depicting Barrie engaged in sexual contact with a minor female.
Barrie is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on August 23, 2019.
Production of child pornography is punishable by statutory penalties of 15-30 years imprisonment followed by a term of lifetime supervised release. Possession of child pornography is punishable by a statutory penalty of up to 10 years imprisonment.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The Rhode Island ICAC Task Force is comprised of members of the Rhode Island State Police Computer Crimes Unit along with detectives from the Warwick, Cranston, Newport, East Providence, Pawtucket, Bristol, North Kingstown, and Woonsocket Police Departments, and Homeland Security Investigations agents.
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Red Lake Man Sentenced to 108 Months in Prison for Attempting to Murder Minor VictimRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of DOMINIC EDWARD DESJARLAIT, 19, to 108 months in prison for assault with intent to commit murder. DESJARLAIT, who pleaded guilty on December 19, 2018, was sentenced today before Judge Joan N. Erickson in United States District Court in Minneapolis, Minnesota.
According to documents filed with the court, including a law enforcement affidavit, during the evening hours of August 29, 2018, DESJARLAIT began an argument with the victim and a group of six other minor males at a grocery store on the Red Lake Reservation. The victim and the group of minor males left the grocery store and relocated to a residence on the reservation. DESJARLAIT also left the grocery store and followed the group, riding in a black SUV. Upon reaching the residence, DESJARLAIT exited the vehicle with a firearm, shouted the victim’s name and began firing multiple shots at the victim and the group of six other minor males. Multiple bullets hit two nearby residences that were occupied at the time.
DESJARLAIT also admitted to a previous assault with intent to commit murder against the same victim. On July 28, 2017, DESJARLAIT emerged from a wooded area on the Red Lake Reservation, near a residence where the victim and other males were located. DESJARLAIT fired a shotgun at the victim, causing wounds to his face and upper body.
This case was the result of an investigation conducted by the FBI Headwaters Safe Trails Task Force and Red Lake Department of Public Safety. This case is part of Project Safe Neighborhoods, an initiative that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Assistant U.S. Attorney Angela Munoz-Kaphing prosecuted the case.
Defendant Information:
DOMINIC EDWARD DESJARLAIT, 19
Red Lake, Minn.
Convicted:
- Assault With Intent To Commit Murder, 1 count
Sentenced:
- 108 months in prison
- Three years of supervised release
- $715.83 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
RI Man Indicted for Defrauding Investors and Tax EvasionRead the Press Release
WASHINGTON – A federal grand jury in Rhode Island indicted a Rhode Island man yesterday on multiple counts of wire fraud, money laundering, and tax evasion after allegedly running decade-long schemes to defraud investors and the United States Treasury, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Aaron Weisman for the District of Rhode Island.
According to the indictment, between 2008 and 2018, Thomas Huling of West Warwick, Rhode Island, 55, formerly a mortgage broker, orchestrated a scheme to defraud investors by promoting several investment projects, including offshore high-yielding bond trading platforms, a car emissions reduction technology, and an online advertising and marketing company. Huling allegedly solicited funds for these investments by representing, among other things, that the money would be used for the particular project, and that the investments would achieve substantial returns - with little or no risk - within a short period of time. The indictment alleges that to enhance his credibility and build trust, Huling incorporated religion and the possibility of charitable good works into his sales pitch, and would claim association with well-known individuals who in turn had an interest in his investments.
In truth, and contrary to the representations and promises he made to investors, the indictment alleges that Huling used investor monies to support his lifestyle that included purchases of high-end luxury vehicles, membership and golf fees at multiple country clubs, clothes and fashion, food and restaurants, vacations and travel, and improvements to his residence.
The indictment further alleges that when investors contacted him with concern about the status of their investment, Huling lulled them with false and fraudulent excuses and promises to string them along, and other times refused and avoided calls. To appease certain investors, Huling allegedly used money raised from new investors to pay off the earlier investors. To conceal the source and disposition of funds, the indictment alleges that Huling established multiple shell companies and more than 50 bank accounts to deposit, commingle, withdraw, and transfer funds.
In all, Huling’s fraud scheme against investors allegedly yielded approximately $14 million in funds raised from investors, causing a loss to investors of more than $6 million.
The indictment further alleges that while defrauding investors Huling also defrauded the United States by evading taxes. It charges that between 2009 and April 2018, while living his lifestyle through millions in personal expenditures using the investors’ funds, Huling reported no taxable income, paid no income taxes, and committed multiple affirmative acts in an effort to conceal his income and mislead the IRS. As part his tax evasion scheme, Huling allegedly filed false and fraudulent individual and corporate income tax returns, used multiple nominee entities and bank accounts to conceal income, used corporate account debit cards to pay for personal expenses, used cash extensively, manipulated the books and records of his purported companies to record sham loans so as to conceal personal expenditures and income, titled personal assets in the name of shell companies, and lied to IRS special agents concerning his income, expenses, and business activities. Allegedly, while specifically evading the assessment of his 2009 through 2011, 2012, and 2016-2017 taxes, Huling also evaded payment of his 2007 taxes.
If convicted, Huling faces a statutory maximum sentence of twenty years in prison for each wire fraud charge, ten years in prison for each money laundering charge, and five years in prison for each tax evasion charge. Huling also faces a potential period of supervised release, substantial fines and penalties, and orders of restitution and forfeiture.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Weisman thanked special agents of IRS-Criminal Investigation and the FBI and an IRS revenue agent, who all investigated the case. They also thanked Assistant Chief John N. Kane, Jr. of the Tax Division and Assistant United States Attorney Sandra Hebert, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Quiroga Brothers Sentenced in Drug and Bulk Cash Smuggling ConspiracyRead the Press Release
LAREDO, Texas – Two brothers have been ordered to federal prison following their convictions of conspiracy to possess with intent to distribute cocaine and conspiracy to smuggle bulk cash from Mexico, announced U.S. Attorney Ryan K. Patrick. Mario Luis Quiroga Trevino, 43, a Mexican national who was illegally residing in Laredo, his brother Javier Quiroga, 48, of Laredo, pleaded guilty Nov. 6, 2018.
Today, Visiting U.S. District Judge Hilda Tagle sentenced Quiroga to a total of 70 months in federal prison followed by three years of supervised release. At the hearing, the court noted that although not as highly-involved in the conspiracy as was his brother, Quiroga could not justify being a minor player. He engaged in continuing criminal activity over several months and played a role in storing, transporting and delivering cocaine as well as recruiting a driver to transport a load of cocaine to the Houston area.
The court sentenced Trevino April 9, 2019, to 120 months on the drug conspiracy and 60 months for the other charge to run concurrently. In imposing the sentence, the court found him to be an organizer, leader and manager. Not a U.S. citizen, he is expected to face deportation proceedings following his term of imprisonment.
The two brothers were involved in the conspiracy which spanned from April 1, 2015, to on or about Oct. 16, 2015.
The investigation identified the brothers’ involvement in three seizures related to the overall conspiracy. The first occurred April 1, 2015, when Quiroga, at the direction of his brother, delivered more than two kilograms of cocaine at a gas station on Mines Road in Laredo.
Then, on Oct. 21, 2015, Trevino coordinated with his brother to transport more than 20 kilograms of cocaine from Laredo to the Houston area. Authorities observed Trevino delivering the cocaine to Quiroga’s residence in Laredo. Quiroga then delivered the narcotics to another individual who arranged to have the cocaine transported to Houston for delivery. Law enforcement seized the 20 brick of cocaine which had an estimated value of approximately $500,000.
The third incident involved the seizure of $12,000. According to their admissions at the time of their pleas, Quiroga traveled to Nuevo Laredo, Mexico, to pick up $12,000 at his brother’s direction. Quiroga then smuggled it into the United States through the port of entry at Laredo. Quiroga then transferred that money to someone who had secured a truck driver to transport a load of cocaine from Laredo to the Houston area.
Trevino has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Quiroga was allowed to remain on bond pending surrender at a later date.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Mary Lou Castillo is prosecuting the case.
Prison Sentences for Tax Fraud in Central Illinois Highlight Serious Consequences for Tax CrimesRead the Press Release
SPRINGFIELD, Ill. – In advance of the April 15, 2019, tax filing deadline, the U.S. Attorney’s Office and IRS Criminal Investigation, Chicago Field Office, remind citizens that falsely preparing tax returns and evading taxes are crimes.
“To protect the integrity of our nation’s tax system, we work year round to investigate and prosecute individuals who violate our tax laws,” stated U.S. Attorney John Milhiser. “It is our responsibility to hold accountable those who attempt to cheat the system for personal gain.”
“Taxpayers thinking about participating in fraudulent tax schemes, such as failing to report all forms of income or falsifying deductions should take a good look at the serious and detrimental consequences of taking the next step,” stated Special Agent in Charge Gabriel Grchan of the IRS Criminal Investigation Division. “Those who might consider preparing false and fraudulent tax returns should be aware of the extremely negative consequences that could result in prison time and large tax bills, including substantial fines, interest and penalties.”
On April 8, 2019, the owner of Springfield’s Osaka Japanese Restaurant, Chu Chuk Cheung, pleaded guilty to filing false tax returns and faces up to five years in prison when sentenced on Aug. 2. Cheung admitted that he removed funds from the Osaka business account and used the money for personal investments, and that he did not disclose the additional income from Osaka to his personal accountant. As a result, the tax returns prepared by Cheung’s accountant and filed by Cheung for 2012 and 2013 were false. Assistant U.S. Attorney Hilary W. Frooman is representing the government in the prosecution.
Clifton “Ty” Robinson, of Chicago, is among defendants sentenced to prison in 2018 in central Illinois for tax fraud. Robinson was the leader of what Senior U.S. District Judge Michael M. Mihm described as a “remarkable conspiracy” at sentencing in November 2018. Judge Mihm ordered that Robinson serve more than eight years in prison for the scheme that claimed more than $1.8 million in refunds from false tax returns. Robinson and his co-conspirators were ordered to pay $1.2 million in restitution to the IRS for refunds paid as a result of more than 300 false returns filed. Assistant U.S. Attorneys Darilynn Knauss, Segev Phillips, and Kate Legge represented the government in the prosecution of Robinson.
In July 2018, U.S. District Judge Sue E. Myerscough sentenced a former Springfield, Ill., business owner, Gregg Harwood, to 18 months in prison for failing to report more than $1.15 million in earnings on tax returns filed for tax years 2008, 2009, and 2010. Harwood formerly owned Thermionics, a corporation that manufactured hot / cold pain therapy products that were sold at major retailers and pharmacies across the U.S. Harwood pleaded guilty to creating multi-level entities with no legitimate business purpose, which he used to divert and disguise income from Thermionics. Harwood used the tax free income to support his personal lifestyle. At sentencing, Harwood paid the amount due to the IRS, $447,528, and $250,000 to participants in Thermionics’ employee stock ownership plan. Assistant U.S Attorney Timothy A. Bass represented the government in the prosecution of Harwood.
A Henry county, Ill., paving company owner, Tony L. Porter, was sentenced in August 2018, to nearly four years in prison for tax evasion. U.S. District Judge Sara Darrow ordered Porter to pay $566,571 in unpaid taxes and interest to the IRS. Porter underreported or failed to report income he received from customers of his paving business in 2009, 2010, and 2011. Assistant U.S. Attorney Hilary W. Frooman represented the government in the prosecution of Porter.
For help and assistance in choosing reputable tax professionals for preparing tax returns, or for assistance in preparation of individual tax returns, please visit the official IRS website: https://www.irs.gov/help-resources
Passaic County, New Jersey, Couple Admit Roles in Illegal Food Stamps SchemeRead the Press Release
TRENTON, N.J. – A Passaic County, New Jersey, couple admitted today that they took part in a food stamps fraud scheme, U.S. Attorney Craig Carpenito announced.
Ibrahim Zughbi, 65, and his wife, Miriam Zughbi, 61, of Wayne, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court. Ibrahim Zughbi pleaded guilty to an information charging him with Supplemental Nutrition Assistance Program (SNAP) – formerly known as the Food Stamp Program – benefit fraud and money laundering. Miriam Zughbi pleaded guilty to an information charging her with conspiracy to defraud the United States through SNAP benefit fraud.
According to documents filed in these cases and statements made in court:
From January 2014 to January 2018, the defendants owned and worked at Jamaica Meat Market, a medium-size grocery store in Paterson, New Jersey. Ibrahim Zughbi had been previously barred from participating in the SNAP program for allowing benefits to be exchanged for cash in a prior store that he owned. Ibrahim Zughbi listed a nominee as the store’s owner in order for Jamaica Meat Market to participate in the program.
Jamaica Meat Market was authorized to accept benefits provided by SNAP, which is administered by the U.S. Department of Agriculture. Retail food stores approved for participation in SNAP may sell food in exchange for SNAP benefits. They may not exchange SNAP benefits for cash. The Zughbis exchanged more than $4.5 million in SNAP benefits for cash between 2014 and 2018.
Every SNAP recipient receives an Electronic Benefit Transfer (EBT) card, similar to a debit card, with which to make purchases. Every retailer authorized to accept SNAP benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction and informs the retailer whether the transaction should be authorized or denied. The amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the amount is credited to the retailer’s designated bank account.
To conceal the proceeds of the SNAP benefit fraud, Ibrahim Zughbi wrote inflated checks from the Jamaica Meat Market account containing the SNAP fraud proceeds to a supplier, and then received funds back in cash from the supplier. Zughbi also issued checks to family members with no apparent connection to Jamaica Meat Market.
Law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of a confidential source who, at the direction of law enforcement, engaged in 16 “purchases” at Jamaica Meat Market where one or both defendants exchanged money for SNAP benefits.
The SNAP fraud and money laundering charges each carry a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. The conspiracy charge carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 17, 2019.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture –Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s guilty pleas. He also thanked the Passaic County Prosecutor’s Office, the Wayne Township Police Department and the Paterson Police Department for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Sean M. Sherman of the U.S. Attorney’s Office Public Protection Unit in Newark.
Defense counsel: Ibrahim Zughbi: Alan Zegas Esq., Summit, New Jersey
Miriam Zughbi: Sean McGovern Esq., NewarkOrthopedic Surgeon Sentenced for Opioid Prescription ConspiraciesRead the Press Release
An orthopedic surgeon, who formerly practiced in Claremore, was sentenced today in U.S. District Court for leading multiple conspiracies to write fraudulent opioid prescriptions from October 2015 to October 2017, announced U.S. Attorney Trent Shores.
U.S. District Judge John E. Dowdell sentenced Dr. Jeremy David Thomas, 43, of Owasso, to five months imprisonment followed by eight months of home confinement for his role in five separate pill sharing conspiracy cases. Thomas was also ordered to pay a $5,000 fine and to three years supervised release.
“Dr. Thomas was a drug dealer like any other whose business it was to peddle opioids and addiction in our community. But unlike a typical drug dealer, he also performed surgeries on patients. Moreover, he was under the influence during those surgeries,” said U.S. Attorney Shores. “Opioid addiction destroys lives. Not only of the addict, but of those around them. This case showcases the destructive power of opioids.”
“Dr. Thomas’ patients trusted and relied on him for their medical needs” said Drug Enforcement Administration (DEA) Dallas Division Special Agent in Charge Clyde E. Shelley, Jr. “However, Dr. Thomas used his patients for his own opioid use and put patients’ lives in danger. We will continue to combat the opioid crisis to cease this kind of practice.”
Thomas’ pleaded guilty Nov. 26, 2018, to writing fraudulent prescriptions for the opioid hydrocodone to multiple co-conspirators who were his patients. His accomplices then filled the prescriptions at area pharmacies and delivered some or all of the hydrocodone tablets to Thomas. As a result of their illegal pill sharing activity, Thomas and his co-conspirators diverted more than 13,740 doses of the drug during a two year period, mainly for the physician’s illegal personal use.
Rogers County District Attorney Matt Ballard, whose investigators were crucial to the case said, “This is an excellent example of the type of cooperative effort needed to battle this deadly epidemic. This case shows the dangers of opioid abuse and addiction which cut through all socioeconomic statuses and have a negative domino effect in our communities.”
US Attorney Shores also noted the collaborative law enforcement effort involved with this case, “This case was successfully prosecuted thanks to a collaborative effort with Rogers County District Attorney Matt Ballard and his team. The investigators from the Rogers County District Attorney’s Office along with the Drug Enforcement Administration and Oklahoma Bureau of Narcotics and Dangerous Drugs are all to be commended for their work in bringing Dr. Thomas to Justice.”
Also implicated in the drug conspiracies were Jeffrey Lee Koger, 48, of Claremore; Joseph Marcus Jones, 36, of Claremore; Toni Dawn Martin, 49, of Owasso; Shawn Del Martin, 50, of Owasso; and Chad Lee Choat, 46, of Claremore.
Opioid addiction has plagued families and taken lives. Painkillers are involved in more than 80% of the prescription drug-related overdose deaths in Oklahoma, and hundreds of Oklahomans die each year due to these overdoses. Due to staggering cost of addiction and this month’s DEA National Prescription Drug Take Back Day, April 27, U.S. Attorney Shores has created a Public Service Announcement reminding families to protect their loved ones by safely disposing of prescription drugs and to seek help if you or a loved one is struggling with addiction. You can find the Public Service Announcement here.
The Rogers County District Attorney’s Office, the Drug Enforcement Administration, and the Oklahoma Bureau of Narcotics and Dangerous Drugs conducted the investigation. Assistant U.S. Attorney Joel-lyn McCormick prosecuted the case. AUSA McCormick is the Lead Attorney for the Organized Crime Drug Enforcement Task Force Unit for the Northern District of Oklahoma.
This investigation and resulting conviction are part of the Department of Justice and Department of Health and Human Services’ 2018 National Healthcare Fraud and Opioid Takedown initiative, the largest ever healthcare fraud enforcement action. The U.S. Attorney’s Office will continue to prosecute medical professionals who break the law and contribute to opioid addiction.
To find help and resources to fight opioid addiction, visit the following site: https://findtreatment.samhsa.gov
Ohio County man indicted on firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Derek Schultz, of Wheeling, West Virginia, was arraigned today on a firearms charge, United States Attorney Bill Powell announced.
Schultz, age 53, was indicted by a federal grand sitting in Wheeling on April 2, 2019 on one count of “Prohibited Possession of a Machinegun” and one count of “Unlawful Possession of N.F.A. Firearm.” Schultz is accused of having an unregistered .30 caliber machine gun in January 2019 in Ohio County.
Schultz faces up to 10 years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney David J. Perri is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department investigated.
U.S. Magistrate Judge James P. Mazzone presided.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
National Victims’ Rights Week Focus: Protecting Older Adults from Fraud and AbuseRead the Press Release
Fordham Pleads Guilty To Mail Fraud Scheme With More Than 1,600 Victims Throughout The Nation
SALT LAKE CITY – In observance of National Crime Victims’ Rights Week (April 7-13, 2019), the U.S. Attorney’s Office in Salt Lake City held a media roundtable Wednesday morning advocating for victims of elder abuse in Utah and around the country. Elder abuse includes crimes such as physical abuse and financial exploitation.
Joining U.S. Attorney John Huber at the roundtable discussion were Nan Mendenhall, State of Utah Director of Adult Protective Services, Alan Ormsby, State Director of AARP Utah, and Jared Bingham, Team Leader of the U.S. Postal Inspection Service in Utah.
“Attorney General William B. Barr reminded us a few weeks ago that crimes against the elderly target some of the most vulnerable people in our society. No one is immune from these schemes,” U.S. Attorney John W. Huber said today. “While victims of any crime deserve justice, we decided to focus our victim rights week energy on our continuing efforts to educate our older adults and their families about signs of elder abuse. This effort remains one of the top priorities for the Department of Justice and my office.”
According to a Department of Justice report provided to Congress, it is widely estimated that at least one in 10 people in the United States suffers from some form of elder abuse. The abuse can be physical, psychological, or financial. Each year, an estimated $3 billion is stolen from millions of American seniors through fraudulent financial investment schemes, grandparent scams, fake prizes, romance scams, and fraudulent IRS refunds – among others. Older Americans are targeted because fraudsters believe that is where the money is, they are more accessible after retirement, and they may be more trusting.
For example, sentencing will be June 6, 2019, in a Utah case involving a Las Vegas man who devised a direct mail fraud scheme involving at least 1,693 victims nationwide – many of whom are elderly and disabled. The total loss amount in the case is $1,834,033.15.
Daron Howell Fordham, age 50, of Las Vegas, Nevada, entered guilty pleas to six counts of mail fraud in federal court in Salt Lake City on March 28, 2019. U.S. District Judge Dee Benson presided at the hearing. Fordham pleaded guilty to all counts included in an indictment returned by a federal grand jury in October 2018. The plea agreement includes a stipulated sentence of 72 months in federal prison, subject to the approval and acceptance of the court.
The six victims of the mail fraud counts in the case are between 65 and 91 years old.
Fordham, aka Southboy, Daron Destiny, Paul Park, James Parker, Daron Howell and Darren Fordham, admitted that as a part of his fraud scheme, he opened a private mailbox at the UPS Store in Park City in May 2014, using the business name Park Publishers and Distributors. He requested that all mail received at the mailbox be forwarded to his address in California.
He used the mail to send promotional materials to individuals throughout the United States, including residents of Utah. The mailers offered an opportunity to make money through a “direct partner program” called “Paul Park’s Profit Program” and listed the Park City mailbox as the company address for responses. As a part of his plea agreement, Fordham admitted his mailers induced people to send money to the Park City mailbox. The mail was immediately forwarded to him in California. Some individuals made electronic payments.
Fordham admitted making fraudulent claims and guarantees to induce individuals to invest, including “I’ll show you how you can earn up to 976% return (or more) on your money in less than 120 days… And without you even having to lift a finger to do work at all.” He also encouraged them to invest in the printing and mailing of “our hot-selling FREE CRUISE FOR TWO VOUCHERS (sample included with the letter) that are used by businesses all across the country.”
Fordham told investors “WE DO ALL THE WORK! You decide how many Mailing Spots you want now and you’ll receive your Principal Check and PROFIT Check in less than 90 days. Trust me. You’ll be upset if you miss this one.”
He told investors, according to the plea agreement, they could get more than a 1,000% return on their money by investing $500 and getting a return of $5,570.
Fordham admitted he obtained at least $203,866.25 through his Park Publishers fraud scheme. After about six months, he closed the mailbox in Park City and disconnected the 1-800 number, leaving victims unable to reach him. He never sent them vouchers or returned any money he received from the victims, despite receiving heartfelt letters requesting a refund. As a part of the plea agreement, he said he did on occasion purchase “a few gift cards and sent them to victims that complained the most in an attempt to appease them.”
The six mail fraud counts of conviction relate to the Park City financial fraud scheme.
Fordham admitted that in the year 2014, he had at least eight different variations of this scheme ongoing using different names, private mailboxes, and phone numbers. He admitted he obtained $1,596,642.14 through his fraudulent mailer schemes January through November 2014.
He admitted he continued to operate his fraudulent scheme until his Nov. 9, 2018, arrest in Las Vegas. At the time of his arrest, law enforcement officers found an apartment full of promotional material similar to the Park Publishers scheme but with different variations. Fordham admitted he was operating schemes called “Monster Gift Cards” and “AGS Gift Cards.” He fraudulently obtained at least $239,516 from these schemes.
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office are prosecuting the case. Inspectors with the U.S. Postal Inspection Service in Salt Lake City are investigating the case.
Multi-Agency Investigation in Kodiak Leads to Conviction of 13 Individuals for Federal Drug Trafficking, Money Laundering, and Firearm CrimesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today the conclusion of a multi-agency investigation and prosecution of 13 individuals from Kodiak, Alaska, for drug trafficking, money laundering, and firearms related charges.
In the summer of 2016, in response to community outrage over significant drug use, drug trafficking, and other drug related crimes in Kodiak, the Coast Guard Investigative Service (CGIS) led an operation with federal, state, and local law enforcement agencies, and launched an investigation into drug trafficking activities in Kodiak.
The investigation revealed that drugs such as heroin and methamphetamine were imported to Kodiak through common carriers and also transported by human couriers on airplanes. These drugs were sold and intended to be sold in the Kodiak community. The investigation also revealed several individuals in illegal possession of firearms. In addition, there were individuals convicted of money laundering counts for sending payment for illegal drugs to sources of supply located outside of Kodiak through banks and money exchanges.
The investigation led to the conviction of 13 defendants for drug trafficking, money laundering, and firearms crimes that originated in Kodiak. Not all of the convicted defendants conspired or associated with one another.
- Christopher Arndt, 40, of Kodiak, was sentenced on March 7, 2019, to serve nine years in prison, followed by four years of supervised release, after he was convicted of one count of drug conspiracy and one count of money laundering conspiracy.
- Wahyu Sanjoyo, a/k/a, “Mike,” a/k/a, “Kodiak Mike,” 37, of Kodiak, was sentenced on Aug. 6, 2018, to serve 10 years in prison, followed by five years of supervised release, after he was convicted of one count of possession of controlled substances with intent to distribute and one count of possession of firearms in furtherance of drug trafficking.
- Jose Rodriguez, a/k/a, “Bird,” 31, of Kodiak, was sentenced on April 5, 2019, to serve five years in prison, followed by five years of supervised release, after he was convicted of one count of attempted possession of controlled substances with intent to distribute.
- Ann Nava Vega, 41, of Chula Vista, California, was sentenced on Dec. 7, 2017, to serve 59 months in prison, followed by five years of supervised release, after she was convicted of one count of possession of controlled substances with intent to distribute.
- Nathan Gambrell, 44, of Kodiak, was sentenced on Dec. 20, 2017, to time served, followed by three years of supervised release, after he was convicted of one count of felon in possession of a firearm. Gambrell subsequently violated the terms of his supervised release and was re-sentenced to a term of 11 months in prison.
- Joshua Cislo, 33, of Kalispell, Montana, was sentenced on Jan. 26, 2018, to serve two years in prison, followed by three years of supervised release, after he was convicted of one count of drug conspiracy.
- Leonard Parker Taylor, 49, of Seattle, Washington, was sentenced on Jan. 29, 2018, to serve 27 months in prison, followed by three years of supervised release, after he was convicted of one count of drug conspiracy.
- James Gerrity, 31, of Kodiak, was sentenced on March 8, 2018, to serve 21 months in prison, followed by four years of supervised release, after he was convicted of one count of drug conspiracy.
- Santos Lopez, 42, of Kodiak, was sentenced on March 9, 2018, to serve 46 months in prison, followed by five years of supervised release, after he was convicted of four counts of drug distribution.
- Joshua Herald, 37, of Kodiak, was sentenced on April 9, 2018, to serve three years in prison, followed by five years of supervised release, after he was convicted of one count of drug conspiracy and one count of money laundering conspiracy.
- Lorie Wenzel, 58, of Lodi, California, was sentenced on April 6, 2018, to serve three years in prison, followed by three years of supervised release, after she was convicted of one count of money laundering conspiracy.
- Josie Harvey, 33, of Renton, Washington, was sentenced on Sept. 9, 2018, to time served, followed by three years of supervised release, after she was convicted of one count of possession of controlled substances with intent to distribute.
- Leigh Ann Massengill, 44, of Anchorage, was sentenced on April 9, 2019, to serve 57 months in prison, followed by four years of supervised release, after she was convicted of one count of drug conspiracy and one count of money laundering conspiracy.
“The rural areas of Alaska are every bit as devastated by drug abuse as the cities,” said U.S. Attorney Schroder. “However, a coordinated investigation by a dedicated group of investigators and prosecutors can make a real difference in a small town. Law enforcement professionals stepped in to make the community safer. They continue to work tirelessly to stem the tide of drug trafficking in Kodiak and elsewhere.”
“The Coast Guard Investigative Service is thankful for the collaborative effort from multiple agencies during this investigation,” said Randy Thompson, CGIS Assistant Special Agent in Charge for the Northwest region. “We are committed to continuing our partnerships into the future to make Alaska a safer place to live.”
“This collection of criminals has been trafficking drugs and bringing devastation to the Kodiak area for years” said Justin Campbell, IRS Criminal Investigation Special Agent in Charge, Seattle Field Office. “The role of IRS CI in narcotics investigations is to follow the money. The laundering of profits from unlawful drug sales is as important and essential to drug dealers’ operations as the distribution of their illegal drugs. We are proud to provide our financial expertise as we work alongside our law enforcement partners to bring criminals to justice."
The Coast Guard Investigative Service (CGIS), the Federal Bureau of Investigation (FBI), the U.S. Postal Inspection Service (USPIS), the Drug Enforcement Administration (DEA), IRS Criminal Investigation (IRS CI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Kodiak Police, the Alaska State Troopers (AST), the Anchorage Airport Police, and the Anchorage Police Department (APD) for the investigation leading to the successful prosecution of the above individuals. These cases were prosecuted by Assistant U.S. Attorney Kelly Cavanaugh.
Monmouth County, New Jersey, Man Sentenced to Five Years in Prison for Receiving Child PornographyRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 60 months in prison for receiving child pornography, U.S. Attorney Craig Carpenito announced.
Jason DiSanto, 39, of Ocean Township, New Jersey, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to an indictment charging him with receiving child pornography. Judge Martinotti imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
A law enforcement investigation into DiSanto’s online activities began in September 2016 when a video of child sexual abuse was shared from a web address registered to his residence. On Nov. 5, 2017, DiSanto was met by law enforcement upon re-entering the United States from an international trip. Law enforcement examined various electronic devices that DiSanto was carrying and located a video of child sexual abuse, as well as a link to additional items of child pornography, on his laptop computer. DiSanto previously acknowledged downloading the video, which he knew constituted child pornography, while in New Jersey.
In addition to the prison term, Judge Martinotti also sentenced DiSanto to five years of supervised release. Additionally, DiSanto will be required to register as a sex offender.U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, with the investigation.
The government is represented by Special Assistant United States Attorney Shawn Barnes of the U.S. Attorney’s OCDTEF/Narcotics Unit in Newark.
Defense counsel: David T. Schlendorf Esq., Toms River, New Jersey