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Tuesday 26 February 2019
25+ Defendants in Wichita Falls Drug Bust SentencedRead the Press Release
More than 25 defendants apprehended in connection with OCDETF “Operation Flat Rate” – a methamphetamine trafficking investigation in Wichita Falls that netted 25 defendants in the summer of 2018 – have been sentenced, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Sentences ranged from a few months to 20 years in federal prison.
One defendant, Chmira Denise Williams, pleaded guilty to misprision of a felony (concealing the commission of felonious acts) and was sentenced to 8 months behind bars. Another defendant, Denene Griggs, pleaded guilty to concealing a person from arrest and was sentenced to 4 months in federal prison. She admits to sheltering two fugitives – her child’s father, Javaris Damon Scott, and his brother, Trevor Clifford Scott – inside her apartment; they were later arrested climbing out of her window.
The remaining defendants pleaded guilty to conspiracy to possess with intent to distribute a controlled substance and were sentenced by U.S. District Judge Reed O'Connor:
- LONTA HOBBS: 20 years in federal prison
- AARON TAYLOR : 19 years, 7 months in federal prison
- CHRISTIAN CHAVEZ: 17 years, 6 months in federal prison
- BRAD WHITE: 13 years in federal prison
- CHADRICK MCBRIDE: 12 years in federal prison
- JOHN DUPREE WESLEY: 7 years, 8 months in federal prison
- ADDIS SCALES: 7 years, 3 months in federal prison
- CHRISTOPHER DAVIS: 7 years in federal prison
- FLOYD RICHARDSON: 7 years in federal prison
- GALVIN DANIELS: 5 years in federal prison
- TERRY MURRAY: 5 years in federal prison
- DJUANNA NEWMAN: 5 years in federal prison
- JAVARIS SCOTT: 5 years in federal prison
- ADAM GARCIA: 4 years, 3 months in federal prison
- CANDACE RODGERS: 4 years in federal prison
- TEASIE SCOTT: 3 years in federal prison
- JACINDA BURRIS: 2 years, 6 months in federal prison
- AMBER HATCHER: 2 years in federal prison
- TREVOR SCOTT: 2 years in federal prison
- DEMARCUS MADISON: 1 year, 2 months in federal prison
- SHELBY FUNK: 1 year, 1 month in federal prison
- WAYLAND BRENT BALLARD: 6 months in prison
- ALVIN TRAVIS: 6 months in federal prison
- VIRGINIA WHITE: 6 months in federal prison
“As the U.S. Attorney, I lead an office that prosecutes a variety of very important federal cases, but few investigations are more important than those that protect the public from the danger and devastation caused by illegal drug trafficking,” Nealy Cox said at a press conference in Wichita Falls on July 12, following the bust.
The Federal Bureau of Investigation and Texas Department of Public Safety conducted the investigation with assistance from the Wichita Falls Police Department, Wichita County Sherriff’s Office, Vernon Police Department, 46th Judicial District Attorney’s Office, and the U.S. Marshals Service. Assistant U.S. Attorney Shawn Smith is prosecuting the case.
13 Cuban Nationals Sentenced to Federal Prison for Conspiracy to Commit Wire and Mail FraudRead the Press Release
Columbia, South Carolina---- United States Attorney Sherri A. Lydon announced today that 13 Cuban Nationals have been sentenced in federal court for Conspiracy to Commit Wire and Mail Fraud. United States District Judge Mary Geiger Lewis, of Columbia, sentenced the following defendants:
- Jose Livan Rodriguez Espinosa, age 27, of Miami, Florida, to 108 months in federal prison;
- Ricardo Daniel Ortega Guerra, age 29, of Miami, Florida, to 41 months in federal prison;
- Julio Santos Vargas, age 26, of Miami, Florida, to 33 months in federal prison;
- Humberto Merina Chamizo, age 29, of Roswell, New Mexico, to 33 months in federal prison;
- Julio Villavicencio Alvarez, age 43, of Miami, Florida, to 27 months in federal prison;
- Angel Dairan Martinez Delgado, age 31, of Miami, Florida, to 33 months in federal prison;
- Robert Farres Rodriguez, age 30, of Miami, Florida, to 70 months in federal prison;
- Reyes Garcia Perez, age 53, of Miami, Florida, to 38 months in federal prison;
- Leduan Reyes, age 28, of Miami, Florida, to 33 months in federal prison;
- Andres Conzales Acosta, age 40, of Jacksonville, Florida, to 33 months in federal prison;
- Humberto Medina Chamizo, age 29, of Roswell, New Mexico, to 33 months in federal prison;
- Reinaldo Fabelo, age 29, of Houston, Texas, to 33 months in federal prison; and
- Jose Ramon Morales, age 28, of Ft. Myers, Florida, 12 months in federal prison.
Each defendant was also sentenced to between one and three years of court-ordered supervision to follow his prison term. Together, the defendants were ordered to pay $ 142,758.43 in restitution.
Evidence presented to the court showed that the investigation of this case began in June 2014, when two individuals were stopped by the South Carolina Highway Patrol on I-95 and found to be in possession of counterfeit credit cards. Further investigation by the United States Secret Service revealed that these men were part of a conspiracy that had manufactured, distributed, and negotiated counterfeit credit cards throughout the United States.
Personal and financial information such as names, social security numbers, dates of birth, and bank account and credit card numbers (“victim track data”) was initially purchased from the dark web. This information came directly from the Home Depot Breach, which had been unreported at the time (July 2014). As arrests were made, the group became more sophisticated and began harvesting victim track data through skimming devices placed on gas pumps across the United States. The group used the victim track data to secure counterfeit credit cards, which they used to purchase gift cards primarily at Sam’s Club and Walmarts. They also used fake identification to open approximately 40 different Sam’s Club Accounts from early 2014 into late 2015, causing approximately $1 million in fraudulent transactions.
The group had significant bases of operations in Miami, Florida; Houston, Texas; and Omaha, Nebraska. From 2014 until mid-2017, the group utilized approximately 3,275 victim credit card numbers throughout the United States, affecting approximately 222 financial institutions and causing approximately $1.6 million in fraudulent transactions in South Carolina, Mississippi, Arkansas, Missouri, California, Michigan, Texas, Illinois, Florida, Georgia, Indiana, New Jersey, New York, Oklahoma, Tennessee, Kansas, Missouri, Iowa, and elsewhere. Through assistance from state and local authorities, 21 conspirators have been convicted.
This case was investigated by agents of the Columbia office of the United States Secret Service, the South Carolina Highway Patrol, and state and local law enforcement throughout the United States. Assistant United States Attorney William E. Day, II, of the Columbia office is prosecuting the case.
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Monday 25 February 2019
Worcester Man Charged with Illegal Firearm PossessionRead the Press Release
BOSTON - A Worcester man appeared in federal court in Worcester today to face an illegal firearm possession charge.
Christopher Brown, 34, was charged on Feb. 19, 2019, with one count of being a felon in possession of a firearm. He appeared in federal court in Worcester this afternoon and was returned to state custody where he is currently held on pretrial detention.
According to the charging document, on Nov. 25, 2018, Brown was arrested for carrying a Taurus .38 Revolver loaded with four rounds of ammunition. Brown is prohibited from possessing a firearm due to prior convictions punishable by more than one year in prison.
The charging statute provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Worcester Police Chief Steven M. Sargent made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Worcester Man Charged with Making False Statement in Naturalization ApplicationRead the Press Release
BOSTON – A man residing in Worcester was arrested today and charged in federal court in Boston with making a false statement on an application for naturalization.
John Doe, a/k/a Richard Cheremeh, whose true age, name, and nationality are unknown, was charged with one count of making a false statement relating to naturalization and one count of aggravated identity theft.
According to the indictment that was unsealed today, on July 31, 2014, Doe falsely stated on an application for naturalization that he had never given any U.S. government official any information or documentation that was false, fraudulent, or misleading.
The charge of making a false statement relating to naturalization provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, to be served consecutive to any other sentence imposed, up to one year of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and Denis C. Riordan, District Director, U.S. Citizenship and Immigration Services, District 1, made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Williamstown Man Held on Firearms ChargeRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Douglas Bedell, age 56, of Williamstown, Vermont, has been indicted and detained on a federal firearms charge. At his arraignment in U.S. District Court in Burlington on February 22, 2019, Bedell pleaded not guilty and was ordered detained in the custody of the U.S. Marshal’s Service pending disposition of the charge. Bedell was also ordered to undergo a competency evaluation.
On December 12, 2018, Bedell was arrested by the Vermont State Police in Orange County and charged with Aggravated Domestic Assault after an altercation with a female. Half-a-dozen firearms were found in his residence, along with over 1600 rounds of ammunition. At the time, Bedell had two Vermont felony convictions, and was on State court release based on a 2017 Aggravated Assault with a Weapon charge in Washington County. As a result, federal law barred his possession of firearms. Bedell was detained in State custody after his December, 2018 arrest. A Criminal Complaint filed by the Bureau of Alcohol, Tobacco and Firearms initiated the federal prosecution.
The Criminal Complaint and Indictment are accusations only and Bedell is presumed innocent until and unless proven guilty. The maximum possible sentence on the federal charge is 10 years imprisonment. However, any sentence would be informed by the U.S. Sentencing Guidelines.
U.S. Attorney Christina E. Nolan thanked the Vermont State Police and ATF for their investigative work and collaboration. She stated: “this case exemplifies how federal guns laws may be brought to bear to address and prevent domestic violence in all Vermont communities.” The United States is represented by Assistant U.S. Attorney William Darrow. Bedell is represented by Assistant Federal Defender Elizabeth Quinn.
Wetzel County man sentenced for connection to a drug distribution operation in Wetzel and Tyler CountiesRead the Press Release
WHEELING, WEST VIRGINIA – Justin Richeson, of New Martinsville, West Virginia, was sentenced today to 18 months incarceration for his role in a methamphetamine, cocaine, and heroin distribution operation that spanned multiple states, United States Attorney Bill Powell announced.
Richeson, also known as “Squash,” age 35, pled guilty to one count of “Distribution of Methamphetamine” in December 2018. Richeson admitted to selling methamphetamine in February 2018 in Wetzel County.
Assistant U.S. Attorneys Robert H. McWilliams, Jr., and Shawn M. Adkins prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol; Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Waynesboro Man Faces Mandatory 10-Year Prison Sentence on Federal Meth ChargesRead the Press Release
Harrisonburg, VIRGINIA – A Waynesboro man, who expected to find thousands of grams of pure methamphetamine in a car tire being shipped from New Mexico instead found nothing thanks to the work of law enforcement, pleaded guilty last week in federal court to a pair of drug charges, United States Attorney Thomas T. Cullen announced.
Miguel Angel Moreno, 22, waived his right to be indicted and pleaded guilty recently in U.S. District Court in Harrisonburg to one count of conspiracy to possess with the intent to distribute 500 grams or more of methamphetamine and one count of attempting to possess with the intent to distribute 500 grams or more of methamphetamine. Each count carries a mandatory minimum sentence of 10 years in prison and a maximum statutory penalty of up to life. Moreno also faces a possible $10,000,000 fine.
“Crystal methamphetamine is an incredibly dangerous and addictive drug,” U.S. Attorney Cullen stated today. “We are committed to working with our federal, state, and local partners to stanch the flow of this substance into the Shenandoah Valley and aggressively prosecute organizations and individuals who distribute it.”
“Our message to drug traffickers and their accomplices is clear: individuals attempting to bring dangerous and deadly substances into our neighborhoods will be found,” said ICE Homeland Security Investigations, Washington, D.C. Special Agent in Charge Patrick J. Lechleitner. “We will not sit back and allow this poison to infiltrate the communities we call home.”
According to evidence presented at Moreno’s guilty plea hearing last week by Assistant United States Attorney Jeb Terrien, on June 20, 2018, law enforcement in New Mexico were conducting interdiction operations on Interstate 40 when an officer stopped a tractor-trailer car-hauler. During the traffic stop, the officer and his narcotics canine conducted a search of a jeep, located on the car-hauler. The canine alerted on the Jeep’s spare tire. Officers cut open the tire and recovered 23 packages of crystal methamphetamine, or 9,915 grams of pure methamphetamine. A further search uncovered an additional 4,269 grams of pure methamphetamine in the Jeep and additionally revealed the Jeep was to be delivered to an address in Waynesboro, Virginia.
On June 23, 2018, after replacing the cut tire with a new, now empty, spare tire, the Jeep was delivered to the agreed drop-off location, a gas station in Waynesboro, for pick-up by Miguel Moreno. The defendant arrived in a sports car, removed the spare tire from the Jeep, placed it in his sports car and drove away.
Shortly thereafter, the agents with Homeland Security Investigations and the Waynesboro Police Department executed a search warrant at Moreno’s residence where they recovered multiple cellular phones, digital scales, latex gloves, plastic baggies, and one, cut tire from the trunk of Moreno’s vehicle.
When questioned by police, Moreno admitted he knew the tire contained controlled substances and that the contents of the tire were valued at approximately $150,000.
The investigation of the case was conducted by the U.S. Immigration and Customs Enforcement-Homeland Security Investigations, the Drug Enforcement Administration, the Waynesboro Police Department, and the Waynesboro Commonwealth’s Attorney’s Office. Assistant United States Attorney Jeb Terrien is prosecuting the case for the United States.
Washington County Ambulance District Administrator Sentenced on Corruption ChargesRead the Press Release
St. Louis – William Gum, 49, of Potosi, Missouri, was sentenced to 24 months imprisonment today for his defrauding of a federal benefits program. He was also ordered to pay $150,000 in restitution to the Washington County Ambulance District and forfeited $95,000 to the United States of America. In November 2018, Gum pleaded guilty to four counts of public corruption, defrauding a federal program. He appeared in federal court today before U.S. District Judge Catherine Perry.
According to court documents, Gum served as District Administrator of the Washington County Ambulance District. In addition to working full time as the District Administrator, Gum worked as a part-time Captain in the Potosi Police Department. While collecting a full-time salary from the Ambulance District, Gum also collected a salary from the Potosi Police Department. Despite Ambulance District restrictions to the contrary, Gum consistently paid himself additional salary and benefits pulled from public funding -- while also collecting a significant salary and benefits from the Potosi Police Department.
More specifically and among other things, Gum paid himself more of a salary than was authorized by the Ambulance District; used Ambulance District credit cards for personal purchases; and used Ambulance District funds to pay health insurance benefits for his family members. (Other Ambulance District employees were required to pay those premiums out-of-pocket.) Over the course of at least ten years -- including between 2012 to 2017 -- Gum embezzled over $262,000 of public funds.
After today’s sentencing, U.S. Attorney Jeff Jensen stated, “Abuse of the public’s trust by anyone will not go undisclosed or unpunished. We are pleased with the sentence imposed by the Court and appreciative of the investigators’ and prosecution team’s hard work.”
This case was investigated by the Federal Bureau of Investigation and the Jefferson County Sheriff’s Department. Assistant U.S. Attorney Jeannette Graviss is handling the case for the U.S. Attorney’s Office.
United States Attorney announces violent crime reduction in Northeast LouisianaRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced today that the crime rates in Monroe have dropped in the wake of collaborative efforts to reduce violent crime.
Violent crime rates have dropped from a peak in 2016 of 1,493 offenses to 830 offenses in 2018. That is more than a 44 percent drop in the violent crime rate over a two-year period. The homicide rate has also dropped from 18 in 2015 to six last year – a 66 percent decline in Monroe’s homicide rate. This reduction in Monroe’s 2018 violent crime rate corresponds with U.S Attorney Joseph’s focus on federal violent crime prosecutions and collaboration with District Attorney Tew’s office to jointly identify and prosecute the most violent offenders. In the past year, the U.S. Attorney’s Office for the Western District of Louisiana has prosecuted well over 200 defendants throughout the district for firearm related offenses, including felons and drug dealers in possession of firearms – more than 60 of which have been in the Monroe area. These prosecutions represent approximately three times the number of such cases as were brought in previous years.
The 2018 decline reverses a sharp rise in violent crime that peaked in 2015 and 2016 in the Monroe area. Law enforcement’s efforts to stem this rise in crime have involved local, state and federal law enforcement working together on a daily basis to share information and support one another in the fight against violent crime. Among other measures, the U.S. Attorney’s Office brought in two new prosecutors last year to specifically focus their efforts on violent crime. Louisiana Attorney General Jeff Landry has contributed to the effort by assigning a prosecutor in Monroe to work as a Special Assistant U.S. Attorney in Joseph’s office and provide assistance in the prosecution of violent offenders.
“I am pleased to announce that the trend of rising crime in Monroe and Northeast Louisiana has been reversed,” Joseph stated. “Crime rates are dropping in the Monroe area and, as a result, Monroe is safer now than it has been at any time in the recent past. One of my priorities as U.S. Attorney is to make our communities safer by substantially increasing violent crime arrests and prosecutions in the Western District. These efforts, in conjunction with similar efforts by District Attorney Tew’s office and our law enforcement partners, are clearly making a difference. I want to thank Louisiana Attorney General Landry, District Attorney Tew, Sherriff Russell, Mayor Mayo and Chief Ellis for their commitment and assistance to our joint effort. Through the collaboration of state, local, and federal law enforcement in Northeast Louisiana, this effort is seeing success. We expect even greater things to come.”
“The tremendous drop in violent crime shows what law enforcement agencies can accomplish when working together," Louisiana Attorney General Jeff Landry said. "My office will continue to collaborate with our local and federal partners to make Louisiana a safer place for our children and families.”
“The safety and well-being of our citizens is a vital part of our mission,” said ATF New Orleans Field Division Special Agent in Charge Dana Nichols. “ATF, in partnership with the United States Attorney, the Louisiana Attorney General and other Federal, state and local law enforcement partners will continue to focus our investigative resources on arresting and prosecuting the most violent criminals who use firearms to terrorize our communities and on those individuals who supply firearms to this criminal element. Through the utilization of our Crime Gun Intelligence Centers (CGIC), and National Integrated Ballistic Information Network (NIBIN), we will provide leads to investigators to help identify these criminals to further reduce crime. Protecting neighborhoods from violent crime is a priority for the citizens of Monroe and ATF.”
These efforts are part of the Department of Justice’s ongoing effort to increase targeted prosecutions of violent crime through the Project Safe Neighborhoods (PSN) Program. The PSN program is a collaborative effort led by the U.S. Attorney’s Office involving local, state and federal law enforcement. In the Monroe area, participants include the ATF, FBI, DEA, Ouachita Parish District Attorney’s Office, Ouachita Parish Sheriff’s Office and the Monroe Police Department. The program has been proven to be successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safe for everyone.
The Western District of Louisiana consists of 42 of Louisiana’s 64 parishes and covers the cities of Alexandria, Lafayette, Lake Charles, Monroe and Shreveport.
U.S. Attorney Warns of Potential Charges for Interfering with NTSB InvestigationRead the Press Release
HOUSTON – Anyone that knowingly removes, conceals or withholds a part of a civil aircraft involved in an accident could face civil penalties, criminal charges or both, announced U.S. Attorney Ryan K. Patrick.
According to the National Transportation Safety Board (NTSB), Atlas Air Flight 3591 left Miami at 11:30 a.m. Eastern time Saturday, Feb. 23, bound for Houston. At approximately 12:40 p.m., the twin-engine Boeing 767 cargo jetliner crashed into Trinity Bay near Anahuac.
The FBI has urged anyone with information, photos or videos regarding the incident or with knowledge of debris from the crash to call 1-800-CALL-FBI.
“It should be obvious to everyone, but do not pick up or remove pieces of the wreckage. It can interfere with the investigation and could lead to criminal charges,” said Patrick. “If you do come across debris on your property, please contact the FBI. Additionally, the NTSB and FBI have asked that area residents and businesses check security cameras for possible video of the crash.”
It is a federal crime to withhold part of a civil aircraft involved in an accident. If convicted of knowingly and without authority removing, concealing or withholding a part of such an aircraft, or property on the aircraft at the time of the accident could face up to 10 years in prison, if convicted. The charge could also carry a fine of up to $250,000.
The NTSB is leading the investigation with cooperation and assistance from FBI, Texas Parks and Wildlife, Texas Department of Public Safety, sheriff’s offices in Chambers and Harris Counties and the Houston Police Department, among others.
U.S. Attorney Keefe Thanks Northwest Florida's Law Enforcement for Safeguarding PensaconRead the Press Release
PENSACOLA, FLORIDA – Lawrence Keefe, United States Attorney for the Northern District of Florida, recognized the brave women and men in Northwest Florida’s law enforcement community today for working diligently through the weekend to keep the Pensacon event safe for all participants. This statement is issued after a cyber threat was made to the event just prior to its opening day.
Founded in 2013, Pensacon was held this year from February 22-24 primarily at the Pensacola Bay Center and hosted more than 30,000 participants.
U.S. Attorney Keefe said: “Protecting our communities from cyber threats of fraud or violence requires constant vigilance, and much of the work takes place behind the scenes. I am grateful for the Pensacola Police Department, Federal Bureau of Investigation, Escambia County Sheriff’s Office, and the Florida Department of Law Enforcement, as well as staff in my own office for safeguarding this event.”
Pensacola Police Chief Lyter said, “I am thankful for the great working relationship we have with our federal and state law enforcement partners and the Bay Center staff. These partnerships helped ensure that the citizens and guests attending the Pensacon event remained safe during the entire weekend.”
“FDLE’s Pensacola Regional Office is committed to preventing and solving crime and creating a sense of community awareness in our beautiful region,” said Jack Massey, Special Agent in Charge. “We appreciated the opportunity to work with our partners to make sure all visitors as well as the community were safe while they enjoyed Pensacon.”
In the U.S. Attorney’s Office for the Northern District of Florida, Assistant U.S. Attorney David L. Goldberg is detailed as the national security cyber specialist.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Two Tulare County Men Sentenced for Series of Armed Robberies in Tulare and Kern CountiesRead the Press Release
FRESNO, Calif. — Today, U.S. District Judge Lawrence J. O’Neill sentenced Javier Beltran, 25, of Strathmore, to 23 years in prison for his conviction for two counts of use of a firearm during and in relation to a crime of violence, and he sentenced Ulises Medina, 25, of Earlimart, to 15 years in prison for his conviction for conspiracy to commit Hobbs Act robbery, U.S. Attorney McGregor W. Scott and Tulare County District Attorney Tim Ward announced.
U.S. Attorney Scott said, “Today’s sentences are the result of our commitment to work with our federal, state and local partners to identify and prosecute cases that will help to reduce violent crime in our communities. We are confident that these efforts will continue to reduce crime, save lives, and restore safety to our communities.”
District Attorney Ward stated: “When we began this relationship with U.S. Attorney Scott and his office, our intent was to make Tulare County a safer place. The resolution of this case is a direct and powerful example of why this relationship with our federal partners is important. Under current California law, the defendants in this case would have been eligible for youthful offender parole in California far earlier than when their federal sentences will end. We will stop at nothing to protect the communities we call home. To that end, I commend the work of the U.S. Attorney’s Office and local law enforcement, and I pledge our continued support of Project Safe Neighborhoods.”
According to court documents, Beltran and Medina conspired to commit a series of armed robberies of gas stations, convenience stores, and liquor stores. Beltran, Medina, and their associates committed at least seven armed robberies in Tulare and Kern Counties between May 2016 and January 2017. In February, Beltran, Medina, and their associates and their associates travelled to Nebraska, where they committed two more robberies. They then returned to California, where they committed three more armed robberies.
Beltran and Medina both admitted that they robbed Joe’s Westside in Porterville, California on January 18, 2017. Prior to the robbery, Beltran, Medina, and other conspirators stole a 2006 Chevrolet Trailblazer by pushing a hole in the driver’s side lock, cracking the steering shaft, and starting the vehicle without a key. They drove the vehicle to Joe’s Westside where they entered the store wearing masks and carrying guns.
Inside the store, Beltran, Medina, and another co-conspirator ordered the store clerk to the ground at gunpoint, forced the clerk to open the cash register, and stole over $8,000. Beltran, Medina, and their associates then fled in the stolen Chevrolet Trailblazer, which they abandoned approximately half a mile away with the engine still running.
Beltran also admitted that on July 22, 2017, he and other co-conspirators robbed Woodville Liquor in Woodville. Beltran and his associates stole a 2006 Chevrolet Silverado by cracking the steering shaft and starting the vehicle without a key, then drove it to Woodville Liquor. Beltran entered the store along with two other suspects, each carrying a firearm. They ordered the customers in the store to the ground at gunpoint and used zip ties to tie up one of the store employees. They then stole approximately $2,000 in cash, $4,000 in checks, bottles of whiskey, and cartons of cigarettes before fleeing in the stolen vehicle.
This case was the product of an investigation by the Federal Bureau of Investigation, Tulare County Sheriff’s Office, Porterville Police Department, Lindsay Police Department, Bakersfield Police Department, Fremont (Nebraska) Police Department, and Dodge County (Nebraska) Sheriff’s Office. Assistant U.S. Attorneys Ross Pearson and Kathleen Servatius prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Two Spirit Lake Men Sentenced to Federal Prison for their roles in the Murder of Carla YellowbirdRead the Press Release
FARGO – United States Attorney Christopher C. Myers announced that on February 25, 2019, United States District Court Judge Karen E. Schreier, District of South Dakota, sentenced Daylin Takendrick St. Pierre, age 21, Spirit Lake Indian Reservation, ND, after he pled guilty in November 2018, to serve 27 1/2 years in federal prison, to be followed by 5 years of supervised release for the offenses of Conspiracy to Commit Robbery; Use of a Firearm in Relation to a Felony Crime of Violence; and Felony Murder. St. Pierre was further ordered to pay $300 to the Crime Victims’ Fund, as well as $11,659 in restitution to the victim.
Judge Schreier also sentenced Dakota James Charboneau, age 24, also of Spirit Lake, after he pled guilty in November 2018, to serve 50 years in federal prison, to be followed by 5 years of supervised release for the offenses of Second Degree Murder, Aiding and Abetting; and Use of a Firearm in Relation to a Felony Crime of Violence. Charboneau was further ordered to pay $200 to the Crime Victims’ Fund, as well as $11,659 in restitution to the victim.
On August 23, 2016, Ms. Carla Yellowbird traveled to the Spirit Lake Indian Reservation with Suna Guy, who previously plead guilty to Felony Murder and was sentenced in this case. While on the Spirit Lake Reservation, Dakota Charboneau and Guy planned to rob Ms. Yellowbird of her money and belongings, and later recruited Daylin St. Pierre to do the robbery. In the morning of August 24, 2016, St. Pierre shot and killed Ms. Yellowbird while robbing her.
This case was investigated by the Mandan Police Department; North Dakota Bureau of Criminal Investigation; Bureau of Indian Affairs; and the Federal Bureau of Investigations.
Assistant United States Attorney Janice M. Morley and AUSA Jenifer Puhl prosecuted the case.
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Two Sentenced for Illegal Re-Entry and Use of False PassportsRead the Press Release
St. Louis –Fatima Ciecierska, a/k/a Fatyma Minikiewicz, a/k/a Ewa Antoniewicz, 47, and Adam Dytlow, a/k/a Adam Jedynak, a/k/a Robert Antoniewicz, 50, who were both Polish Nationals, were sentenced today. Ciecierska and Dytlow were sentenced to time served for aggravated illegal re-entry in the United States, and use of a false passport. Both are subject to deportation and removal from the United States at the conclusion of their sentences. Both appeared in federal court before U.S. District Judge Audrey Fleissig.
Defendants are both natives and citizens of Poland. According to court documents, on or about June 27, 2018, defendants were arrested for suspicion of stealing at a retail store in Brentwood, Missouri. Both defendants were found to be in possession of false and counterfeit Polish passports, in false names, that included counterfeit Visas. Both defendants had previously been deported from the United States to Poland; Ciecierska during 2007, and Dytlow during 2009. Neither had obtained the express consent of the Secretary of Homeland Security to apply for admission to the United States.
This case was investigated by the State Department Diplomatic Security Service and U.S. Department of Homeland Security/Immigration and Customs Enforcement (ICE). Assistant U.S. Attorney Matthew Drake is handling the case for the U.S. Attorney’s Office.
Teesto Man Sentenced to Life Imprisonment for Committing First Degree Murder during Domestic ViolenceRead the Press Release
PHOENIX – Today, Giordano Jackson, 40, of Teesto, Ariz., was sentenced by U.S. District Judge Diane J. Humetewa to life imprisonment for the murder of the victim. Jackson was convicted at a jury trial in November 2018 on all charges, including first degree murder, two counts of assault with a dangerous weapon, assault resulting in serious bodily injury, and kidnapping. In addition to life imprisonment for the murder, Judge Humetewa also sentenced Jackson to ten years’ prison for every other count for which he was convicted.
Jackson, a violent criminal with multiple felony assault convictions in his past, had a history of committing domestic violence against the victim. In July 2017, Jackson beat the victim and dragged her by her hair with enough force to pull chunks of hair out of her head. Then, in September 2017, Jackson brutally beat the victim to death outside his house in Teesto. When Navajo Nation Police Officers arrived to investigate, Jackson was lying in wait and assaulted two of the officers with a machete. Both Jackson and the victim are members of the Navajo Nation, as are the responding police officers that Jackson assaulted, and the crimes all occurred on the Navajo Nation Indian Reservation.
At the sentencing hearing, the victim was described as a beloved mother, daughter, and friend and a cherished member of her community. Judge Humetewa noted that the victim had endured “the most brutal death that one can imagine” and concluded: “There comes a time when a person forfeits his right to walk among society. Mr. Jackson, your time has come.”
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorneys William G. Voit and Sharon K. Sexton, District of Arizona, Phoenix.
CASE NUMBER: CR-17-08242-DJH
RELEASE NUMBER: 2019-017_Jackson
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Tampa Man Pleads Guilty to Making False Statement to Federal Credit UnionsRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that Richard Bowe (40, Tampa) pleaded guilty today to four counts of making false statements to federally insured federal credit unions. Bowe faces a maximum penalty of 30 years in federal prison on each count. His sentencing date has not yet been set.
According to facts presented at the plea hearing, in early 2015, Bowe applied to several different credit unions in the Tampa Bay area and made false statements in his loan and/or credit applications. On January 23, 2015, he applied for an auto loan of approximately $30,000 from the Florida Central Credit Union. In the loan application, he falsely claimed that he was employed by the U.S. Central Command and made a false representation about the amount of VA retirement benefits that he earned. On February 26, 2015, he applied for another auto loan of approximately $15,000 from the USF Federal Credit Union and again falsely claimed in the loan application that he was a Deputy Inspector General with the Central Command. On March 4, 2015, he visited the USF Federal Credit Union and applied for another auto loan of approximately $47,000 and made false statements in that loan application about being employed at the U.S. Army Contracting Command and about his receipt of monthly VA benefits. He also applied for a credit card and membership at the Tampa Bay Federal Credit Union on February 26, 2015. In that application, he again made false statements about his employment with the U.S. Army Contracting Command and about his VA benefits.
In each case, Bowe also submitted false and fraudulent documents verifying the employment and benefits that he falsely claimed to be receiving on a monthly basis. In reality, he had no such employment with the U.S. Army and received no such VA benefits.
This case was investigated by the Tampa Police Department, with assistance from the United States Department of Veterans Affairs and the U.S. Defense Criminal Investigative Service. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Stilwell Man Sentenced to 40 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Nathan Bryce Moton, age 44, of Stilwell, Oklahoma, was sentenced to 40 months imprisonment and 4 years of supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B). The charges arose from an investigation by the Krebs Police Department, the McAlester Police Department, and the Drug Enforcement Administration.
The Indictment alleged that on or about February 18, 2018, within the Eastern District of Oklahoma, defendant knowingly and intentionally possessed with intent to distribute 50 grams or more of a mixture or substance containing a detectable quantity of methamphetamine, a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “Rural Oklahoma is no stranger to the destruction caused by Methamphetamine. It destroys people, families, and communities. Dealers do not concern themselves with the havoc they introduce or maintain. Their worry is profit and in some cases feeding their own addictions. We must remain diligent in our efforts to disrupt drug trafficking organizations and their supply chains.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Rob Wallace represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
St. Louis Man Pleads Guilty to Federal Firearm and Drug ChargesRead the Press Release
St. Louis, MO – Derek Whitfield, 36, of St. Louis, pled guilty to federal charges of being a felon in possession of a firearm; possession with intent to distribute fentanyl; possession with intent to distribute cocaine base; and possession of a firearm in furtherance of a drug-trafficking crime. He appeared in federal court this afternoon before U.S. District Judge Henry Autrey who accepted his guilty plea and set sentencing for May 28, 2019.
According to court documents, on November 20, 2017, Whitfield was driving behind a vehicle occupied by two individuals. Whitfield fired shots at them as he drove past. Whitfield then turned his vehicle around and fired additional shots at the victims. The shots fired by Whitfield struck the victims’ car and a residence. Responding police officers recovered 15 shell casings from the scene.
As part of the on-going investigation, police officers executed a search warrant at Whitfield’s house on December 21, 2017. At the time of execution, Whitfield attempted to flee but was taken into custody. From inside Whitfield’s residence, police officers recovered, among other things, a loaded, stolen firearm; fentanyl; cocaine base (crack); marijuana; digital scales; and drug packaging materials.
Whitfield faces up to 10 years’ imprisonment, a $250,000 fine or both for being a felon in the possession of a firearm. Each drug charge carries with it a maximum term of 20 years’ imprisonment, a $250,000 fine or both. Whitfield’s possession of a firearm in furtherance of his drug trafficking is punishable by not less than five years imprisonment consecutive to all other charges. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco and Firearms (ATF). Assistant United States Attorney Lisa Yemm is handling the case for the U.S. Attorney's Office.
St. Croix Man Who Tried to Solicit a Child Online Sentenced for Attempted Coercion and Enticement for Illegal Sexual ActivityRead the Press Release
St. Croix, USVI – Josue Navarro, 37 of St. Croix, was sentenced Friday for attempted coercion and enticement for illegal sexual activity, United States Attorney Gretchen C.F. Shappert announced.
Chief District Court Judge Wilma A. Lewis sentenced Navarro to 30 months and three years of supervised release. Judge Lewis also ordered him to pay a fine of $1,000 and a $100 special assessment.
On August 30, 2018, Navarro pleaded guilty to attempted coercion and enticement for illegal sexual activity. According to the plea agreement filed in court, on or about June 23, 2017 to June 25, 2017, law enforcement officers operating in an undercover capacity, created and posted ads online. The post was captioned “home 4 the summer, looking fun in the sun NSA.” The ad was posted by a law enforcement officer posing as a 14-year-old female named “Niema.”
On June 24, 2017 at 8:43 p.m., “Niema” asked the defendant if he brought something “cause I don’t wanna get pregnant, my mother will kill me,” to which the defendant responded “yes.” At 9:03 p.m. “Niema” told the defendant she was 14. At 9:18 p.m., the defendant said “[L]emme come get you n we go get whatever it is u want.”
At 11:02 the defendant texted the following to “Niema” and in highly graphic language, offered suggestions as to methods and means for sexual penetration which defendant offered to provide to “Niema”.
On June 25, 2017, at 1:19 p.m., the defendant texted “Niema,” asking “to engage in other sex acts involving carnal knowledge.
At 4:35 p.m., the defendant told “Niema” “[L]et me come pick you up.” The defendant was to meet with “Niema at an arranged location in St. Croix and was taken into custody by law enforcement.
The case was investigated by Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Rhonda Williams-Henry.
St. Albans Woman Pleads Guilty to Federal Drug CrimesRead the Press Release
CHARLESTON, W.Va. – A St. Albans woman pled guilty today to federal drug crimes, announced United States Attorney Mike Stuart. Amy Wilkinson, 44, of St. Albans, West Virginia, entered her guilty plea to one count of possession with intent to distribute fentanyl, and one count of possession with intent to distribute heroin. Stuart commended the investigative efforts of the Kanawha County Sheriff’s Department STOP Team and the Drug Enforcement Administration Task Force.
“Fentanyl and heroin have killed far too many West Virginians,” said United States Attorney Mike Stuart. “As part of Operation Synthetic Opioid Surge (SOS), we are prosecuting every readily provable case involving the distribution of fentanyl, regardless of quantity. Operation SOS will save lives.”
During Wilkinson’s plea hearing, it was established that Wilkinson possessed controlled substances with the intent to distribute on two different dates. On February 22, 2017, officers with the Kanawha County Sheriff’s Department and DEA Task Force Officers executed a search warrant on Empire Drive near St. Albans. During the execution of the search warrant, officers found Wilkinson inside the residence in possession of fentanyl that was individually packaged for distribution. Wilkinson admitted on that date that she intended to distribute the fentanyl in and around Kanawha County.
On March 2, 2017, Wilkinson was again caught in possession of a controlled substance with the intent to distribute. An investigation by the Kanawha County Sheriff’s Department discovered that Wilkinson had been selling drugs from a motel room in St. Albans. A search of the motel room revealed that Wilkinson was in possession of 23 grams of heroin that she admitted she intended to distribute in the Southern District of West Virginia.
Wilkinson now faces a sentence of up to twenty years on the drug charges and a fine of up to $1,000,000 when she is sentenced on May 22, 2019.
Assistant United States Attorney Timothy D. Boggess is responsible for the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
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St. Albans Woman Pleads Guilty to Federal Drug CrimesRead the Press Release
CHARLESTON, W.Va. – A St. Albans woman pled guilty today to federal drug crimes, announced United States Attorney Mike Stuart. Amy Wilkinson, 44, of St. Albans, West Virginia, entered her guilty plea to one count of possession with intent to distribute fentanyl, and one count of possession with intent to distribute heroin. Stuart commended the investigative efforts of the Kanawha County Sheriff’s Department STOP Team and the Drug Enforcement Administration Task Force.
“Fentanyl and heroin have killed far too many West Virginians,” said United States Attorney Mike Stuart. “As part of Operation Synthetic Opioid Surge (SOS), we are prosecuting every readily provable case involving the distribution of fentanyl, regardless of quantity. Operation SOS will save lives.”
During Wilkinson’s plea hearing, it was established that Wilkinson possessed controlled substances with the intent to distribute on two different dates. On February 22, 2017, officers with the Kanawha County Sheriff’s Department and DEA Task Force Officers executed a search warrant on Empire Drive near St. Albans. During the execution of the search warrant, officers found Wilkinson inside the residence in possession of fentanyl that was individually packaged for distribution. Wilkinson admitted on that date that she intended to distribute the fentanyl in and around Kanawha County.
On March 2, 2017, Wilkinson was again caught in possession of a controlled substance with the intent to distribute. An investigation by the Kanawha County Sheriff’s Department discovered that Wilkinson had been selling drugs from a motel room in St. Albans. A search of the motel room revealed that Wilkinson was in possession of 23 grams of heroin that she admitted she intended to distribute in the Southern District of West Virginia.
Wilkinson now faces a sentence of up to twenty years on the drug charges and a fine of up to $1,000,000 when she is sentenced on May 22, 2019.
Assistant United States Attorney Timothy D. Boggess is responsible for the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
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Southern California Pharmacy Owner Sentenced to Prison for Her Role in Health Care and Wire Fraud SchemeRead the Press Release
A Southern California pharmacy owner was sentenced today to 48 months in prison for her role in a Medicare fraud scheme involving more than $1.5 million in fraudulent claims for prescription drugs.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicola T. Hanna of the Central District of California, Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Division and Special Agent in Charge Christian J. Schrank of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Regional Office made the announcement.
Tamar Tatarian, 39, of Pasadena, California, was sentenced by U.S. District Judge John F. Walter of the Central District of California, who also ordered Tatarian to pay $1,537,710.73 in restitution to Medicare. On Dec. 14, 2018, Tatarian was convicted of one count of health care fraud and two counts of wire fraud following a four-day jury trial.
Tatarian was an owner of Akhtamar Pharmacy in the Pasadena, California area. According to evidence presented at trial and sentencing, from approximately October 2015 through June 2018, Tatarian engaged in a scheme involving the submission of fraudulent claims to Medicare Part D plan sponsors for prescription drugs that Akhtamar Pharmacy never ordered from wholesalers, and thus never dispensed to Medicare beneficiaries. Tatarian attempted to conceal the fraud through the creation of fake invoices, reflecting wholesale drug purchases by Akhtamar Pharmacy which had, in fact, never taken place, the evidence showed. As a result of this scheme, Tatarian, through Akhtamar Pharmacy, submitted claims to Medicare for more than $1.5 million in prescription drugs that she never purchased or dispensed to patients, the evidence showed.
This case was investigated by the FBI and HHS-OIG. Trial Attorney Alexis Gregorian and Assistant Chief A. Brendan Stewart of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
South Texas Father and Son Admit to Using Racehorses to Facilitate Drug TraffickingRead the Press Release
VICTORIA, Texas - Two members of a prolific transnational, transgenerational drug trafficking organization have pleaded guilty as their trial was set to begin in Victoria federal court, announced U.S. Attorney Ryan K. Patrick. Raul Beltran Jr., 50, and his son Edward Beltran, 24, both of Rio Grande City, pleaded guilty today as they were set to begin trial before U.S. District Judge John Rainey.
The Beltran men admitted to massive amounts of drug smuggling - thousands of kilograms of marijuana.
The investigation began in January 2013 after a Victoria County Sheriff’s Office deputy interdicted approximately 600 pounds of marijuana concealed in a horse trailer. The trailer also contained two racehorses.
That event prompted a lengthy, multiple-agency, multi-jurisdictional investigation that would ultimately uncover information and evidence demonstrating the illegal activities of the Beltran drug trafficking organization. The Beltrans used their horse ranches in Rio Grande City to receive, repackage and conceal thousands of kilograms of marijuana in horse trailers, flat-bed trailers and tractor trailers to ship the marijuana to all points north. They used the sport of horse racing to facilitate drug smuggling and to launder illicit proceeds.
The organization also utilized violence, intimidation, bribery and public corruption to facilitate and perpetuate their illicit activities for nearly a decade with virtual impunity. The investigation demonstrated the organization’s dealings with ranking members of the Gulf and Zeta Cartels, Starr County Chicano Brotherhood, as well as the involvement of multiple corrupt sworn peace officers assigned in the Rio Grande Valley.
A total of 22 people have now been convicted as a result of this investigation, including a former Starr County Sheriff’s Office deputy. In addition, authorities have seized three horse ranches as well as an American Quarter Horse race stallion named Jet Black Patriot and his breeding proceeds and awards.
The Beltran men were permitted to remain on bond pending their sentencing hearing, set for June 3, 2019. At that time, they each face up to life in federal prison and a possible $10 million maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Attorney General’s Office and the Victoria County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Patti Hubert Booth is prosecuting the case.
South Point Man Pleads Guilty to Federal Meth ChargeRead the Press Release
HUNTINGTON, W.Va. – A South Point, Ohio man who was caught selling methamphetamine in Huntington last year pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Jose Cisneros, 28, entered a guilty plea to distributing methamphetamine in federal court in Huntington. Stuart commended the investigative efforts of the FBI Drug Task Force.
“Meth dealers have flooded our communities,” said United States Attorney Mike Stuart. “But we’re up to the task. We’re working hand-in-hand with law enforcement to send them packing.”
On October 25, 2018, an informant working at the direction of the FBI contacted Cisneros to arrange a meth transaction. Cisneros subsequently met the informant at a location in Huntington where he sold the informant one and a half ounces of methamphetamine in exchange for $650. Cisneros was arrested on November 6, 2018, in the 2900 block of 5th Avenue in Huntington and agents seized additional meth that Cisneros intended to distribute.
Cisneros faces up to 20 years in federal prison when he is sentenced on June 3, 2019.
Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
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South Dakotans Indicted on Meth and Gun ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Okreek, South Dakota, woman and a Mission, South Dakota, man have been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance, Possession with Intent to Distribute a Controlled Substance, and Possession of a Firearm by a Prohibited Person. In addition, a Winner, South Dakota, man and a St. Francis, South Dakota, woman were indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Possession with Intent to Distribute a Controlled Substance.
Rainbow Stoneman, age 37, Cody Spotted Tail, age 33, Justin Covery, a/k/a Justin Night Shield, age 19, and Marti Rosalie Whirlwind Soldier, age 22, were indicted on December 11, 2018. They appeared before U.S. Magistrate Judge Mark A. Moreno on February 21, 2019. All four individuals pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to life in prison and/or an $8,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that beginning no later than October 15, 2018, and continuing to November 2, 2018, Stoneman, Spotted Tail, Covery, and Night Shield knowingly and intentionally conspired with others to distribute and possess with the intent to distribute methamphetamine, a Schedule II controlled substance, in the District of South Dakota. The Indictment further alleges that Stoneman and Spotted Tail are unlawful users of and addicted to a controlled substance, which prohibits them from possessing firearms, but that they were in possession of a firearm at the time of their arrest.
The charges are merely accusations and Stoneman, Spotted Tail, Covery, and Night Shield are presumed innocent until and unless proven guilty.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Stoneman, Spotted Tail, Covery, and Night Shield were remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
South Bay Resident Sentenced to 30 Months in Prison for Illegal Dumping in Wetlands and Other Protected WatersRead the Press Release
OAKLAND – James Philip Lucero was sentenced today to 30 months in prison for the unpermitted discharge of pollutants into waters of the United States, including wetlands, announced United States Attorney David L. Anderson, Environmental Protection Agency (EPA) Special Agent in Charge Jay M. Green, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and United States Corps of Engineers Deputy San Francisco District Counsel Jesse L. Anderson. The sentence was handed down by the Honorable Haywood S. Gilliam, United States District Judge.
On February 21, 2018, a federal jury convicted Lucero, 59, of Carmel, Calif., of violating the Federal Clean Water Act. The evidence at trial demonstrated Lucero, a self-described “dirt broker,” orchestrated the illegal discharge of pollutants into waters of the United States adjacent to Mowry Slough, part of the Don Edwards San Francisco Bay National Wildlife Refuge located in Newark, Calif. As a dirt broker, Lucero charged a fee to contractors and trucking companies in exchange for providing open space to dump fill material, including construction debris. The defendant caused approximately 1800 industrial-sized truckloads of construction debris and fill material to be dumped on private property containing federally-protected wetland and other waters of the United States, without applying for or obtaining a permit from the U.S. Army Corps of Engineers or the Environmental Protection Agency, or obtaining permission from the landowner. A federal grand jury handed down a Superseding Indictment on January 31, 2017, charging Lucero with causing dirt, soil, and other materials to be discharged from a point source into waters of the United States, including over ten acres of wetlands and more than an acre of other waters of the United States. Lucero was convicted on all three counts of unpermitted filling of wetlands and tributaries, in violation of 33 U.S.C. §§ 1311, 1319(c)(2)(A), and 1344.
“Protecting the long-term health and integrity of San Francisco Bay, including its tributaries, wetlands, connecting waters, and associated plant and wildlife, are of the utmost importance to the United States,” said U.S. Attorney Anderson. “Today’s sentence should serve as a stern warning to anyone contemplating taking steps to illegally dump in the waters of the United States.”
“The tidal marsh at issue in this case is protected under both the Clean Water Act and Section 10 of the Rivers and Harbors Act of 1899,” said Jay M. Green, Special Agent in Charge of EPA's criminal enforcement program in California. “Today’s sentence demonstrates that EPA and its law enforcement partners will not tolerate illegal dumping into waters of the United States.”
In addition to the prison term, Judge Gilliam ordered Lucero to serve twelve months of supervised release upon his release. A hearing to determine the amount restitution has been set for May 28, 2019. Judge Gilliam ordered Lucero to surrender and to begin serving his sentence on April 22, 2019.
Assistant U.S. Attorneys Philip J. Kearney and Shiao C. Lee prosecuted the case with the assistance of paralegals Alycee Lane and Helen Yee. The prosecution is the result of an investigation by the Environmental Protection Agency, the Federal Bureau of Investigation, the Alameda County District Attorney’s Office, and the Newark Police Department.
Skyline Urology to Pay $1.85 Million to Settle False Claims Act Allegations of Medicare OverbillingRead the Press Release
Skyline Urology has agreed to pay the United States $1.85 million to resolve allegations that it violated the False Claims Act by submitting improper claims to the Medicare program for evaluation and management services, the Department of Justice announced today.
“Physicians and practice groups are expected to bill Medicare properly for the services they provide,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This settlement sends a clear message that the Department of Justice will hold healthcare providers accountable if they knowingly overbill federal healthcare programs.”
Between Jan. 1, 2013, and Dec. 31, 2016, Skyline Urology allegedly submitted false claims to the Medicare program for evaluation and management (E&M) services that were not allowable under Medicare. Medicare generally prohibits healthcare providers from separately billing for E&M services provided on the same day as another medical procedure, unless the E&M services are significant, separately identifiable, and above and beyond the usual preoperative and postoperative care associated with the medical procedure. If an E&M service satisfies these criteria, the provider can use a billing code known as “Modifier 25” to bill for the significant and separately identifiable E&M services. In this case, the government alleged that Skyline Urology used Modifier 25 to improperly unbundle routine E&M services that were not separately billable from other procedures performed on the same day, and, as a result, improperly claimed compensation from Medicare for certain urological services.
“The U.S. Attorney’s Office for the District of Maryland is committed to thoroughly investigating claims of fraud and holding health care providers accountable when they break the rules,” said U.S. Attorney Robert K. Hur. “This settlement is an example of how whistleblowers and government can work together to recoup and deter overbilling practices.”
Skyline Urology has also entered into an Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General that will require regular monitoring of its billing practices for three years.
“Providers are expected to closely follow Medicare rules and bill properly — nothing more, nothing less,” said Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Services. “Taxpayer money wasted is money stolen from this vital federal health program.”
The settlement resolves allegations in a lawsuit filed in the District of Maryland by James M. Cesare, the founder of the consulting firm Bay Area Healthcare Advisors LLC. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. As part of the resolution, Mr. Cesare will receive approximately $323,750.
The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice, the United States Attorney’s Office for the District of Maryland, and the Department of Health & Human Services, Office of Inspector General.
The case is captioned United States ex rel. Cesare v. Skyline Urology, No. 1:16-cv-04059-JKB (D. Md.). The claims resolved by the settlement are allegations only and there has been no determination of liability.
Skyline Urology Agrees to Pay the United States $1.85 Million to Resolve False Claims Act Allegations of Overbilling MedicareRead the Press Release
Baltimore, Maryland – Skyline Urology has agreed to pay the United States $1,850,000 to resolve claims under the False Claims Act alleging that Skyline submitted false claims to Medicare by billing for evaluation and management (E&M) services that were not eligible for reimbursement. Skyline provides urology care in the South Bay area in Southern California with headquarters located in Torrance, California. The false claims act case was filed in U.S. District Court in Maryland, since Medicare claims were paid in Maryland.
The settlement agreement was announced today by the United States Attorney for the District of Maryland, Robert K. Hur; Assistant Attorney General Jody Hunt of the Justice Department’s Civil Division, and Special Agent in Charge Maureen Dixon of the Office of Inspector General for the Department of Health and Human Services.
“The U.S. Attorney’s Office for the District of Maryland is committed to thoroughly investigating claims of fraud and holding health care providers accountable when they break the rules,” said U.S. Attorney Robert K. Hur. “This settlement is an example of how whistleblowers and government can work together to recoup funds and deter overbilling practices.”
“Physicians and practice groups are expected to bill Medicare properly for the services they provide,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Today’s settlement sends a clear message that the Department of Justice will hold healthcare providers accountable if they knowingly overbill federal healthcare programs.”
Skyline presents claims to and is paid by health insurance plans, including Medicare. The amount payable by insurers for a procedure includes the cost of evaluating a patient for the procedure, therefore, under most circumstances, health care providers are not permitted to bill for E&M services on the same day a related procedure is performed. An exception applies, however, if the E&M service is distinctly separate from other services provided, or if the E&M service is above and beyond the care usually associated with the procedure itself. Under these circumstances, a provider may bill for both the E&M service and the procedure, and does this by submitting the bill with a special code, that permits both claims to be paid. Utilizing the code incorrectly results in overbilling.
According to the settlement agreement, the United States contends that from January 1, 2013, through December 31, 2016, Skyline improperly used the code to falsely claim that E&M services were unrelated to other procedures performed on the same day on the same patient, and thus, eligible for separate reimbursement. In fact, the E&M services were performed as part of, and in connection with, other procedures performed on the same day on a single patient, and Skyline received more reimbursement than it was entitled to under Medicare. Skyline denies the allegations.
Skyline Urology has also entered into an Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General that will require regular monitoring of its billing practices for three years.
“Providers are expected to closely follow Medicare rules and bill properly -- nothing more, nothing less,” said Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Services. “Taxpayer money wasted is money stolen from this vital federal health program.”
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act by James M. Cesare (United States and State of California ex rel James M. Cesare v. Skyline Urology., Civil Case No. JKB-16-4059 (D. Md.)). The False Claims Act permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery. As part of today’s resolution, Mr. Cesare will receive $323,750. The claims resolved by this settlement are allegations only, and there has been no determination of liability.
U.S. Attorney Robert K. Hur commended the HHS Office of Inspector General for its work in the investigation. The case was handled by Assistant United States Attorneys Jane Andersen and Thomas Corcoran, and Trial Attorney Nicolas Perros of the Department of Justice Civil Fraud Section.
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Sioux Falls Man Charged with Failure to RegisterRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Phillip Running, age 31, was indicted on February 13, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 21, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between December 14, 2018, and December 20, 2018, Running, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under law, failed to register and update his registration.
The charge is merely an accusation and Running is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Running was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Scranton Man Guilty of Producing Child PornographyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Lawrence Stone, age 64, of Scranton, pleaded guilty on February 21, 2019, before U.S. District Court Judge Malachy E. Mannion to producing child pornography.
According to United States Attorney David J. Freed, Stone admitted to persuading two minor victims to engage in sexually explicit conduct for the purpose of producing images of the conduct. Stone committed the offense between 2010 and 2014, in Lackawanna County.
Judge Mannion ordered a presentence investigation to be completed. Sentencing will be scheduled at a later date.
The case was investigated by the Federal Bureau of Investigation and the Scranton Police Department. Assistant United States Attorney Francis P. Sempa is prosecuting the case.
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."
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the offense is 30 years’ imprisonment, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of 15 years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Rome City Man Sentenced to 204 Months in PrisonRead the Press Release
FORT WAYNE – Shon Gibson, 47, of Rome City, Indiana, was sentenced before Chief Judge Theresa L. Springmann on his plea of guilty to possessing with intent to distribute 5 grams or more of methamphetamine and being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Gibson was sentenced to 204 months in prison and 8 years of supervised release.
According to documents in this case, in December 2016 a search warrant was executed on Gibson’s residence. Seized from Gibson’s garage was an ounce of 100% pure methamphetamine and over $32,000 in drug trafficking proceeds. In an attic above the garage, law enforcement seized two AK-47 rifles and two inert military-grade hand grenades. One of the rifles was fully automatic while the other was a short-barreled rifle. Another $8,000 in cash was found in a safe inside the house. Due to the multiple felony drug trafficking convictions, Gibson was sentenced as a career offender under the United States Sentencing Guidelines.
This case was investigated by the Drug Enforcement Administration with assistance from the Bureau of Alcohol Tobacco Firearms and Explosives, the Indiana State Police, Noble County Sheriff’s Department, and the Wolcottville Police Department. This case was prosecuted by Assistant U.S. Attorney Anthony W. Geller.
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Port Vue Woman Pleads Guilty to Drug Charges in Wiretap CaseRead the Press Release
PITTSBURGH, PA - A resident of Port Vue, Pennsylvania, pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Krystle Barretto, 33, pleaded guilty to three counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Barretto, who was intercepted over a Title III wiretap, conspired to possess with intent to distribute and distributed more 100 grams of heroin. The court was further advised that Barretto arranged for approximately 500 bricks (i.e. 25,000 stamp bags) of heroin to be transported from the Patterson, New Jersey area to the McKeesport, Pa. area, which was seized by law enforcement officers. In addition, the court was made aware that Barretto had a loaded, Glock 17, 9mm handgun, an additional five bricks of heroin, and a large money counter in the bedroom of her residence in Port Vue.
Judge Bissoon scheduled sentencing for June 19, 2019. The law provides for a total sentence of not less than five years and up to 40 years in prison, a fine of up to $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense(s) and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Amy L. Johnston is prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation led to the prosecution of Krystle Barretto. The task force is headed by the Federal Bureau of Investigation and is comprised of members drawn from the FBI Greater Pittsburgh Safe Street Task Force including the Pennsylvania Office of the Attorney General, Clairton Police Department, Wilkinsburg Police Department, West Mifflin Police Department, Allegheny County Police Department, Duquesne Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
The investigation, which utilized Title III intercepts from December 2014 through April 2015 of 10 different cellular telephones, surveillance, controlled drug purchases, and other investigative techniques, established the existence of a number of overlapping and interrelated drug distribution networks at work in the afflicted regions, which included Clairton, McKeesport, and Port Vue in Allegheny County, and areas in Washington County, Westmoreland County, and New Jersey.
Philadelphia man admits to role in a methamphetamine distribution operation in Monongalia CountyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Terry Willie Trapp, of Philadelphia, Pennsylvania, has admitted to his involvement in a methamphetamine distribution operation, United States Attorney Bill Powell announced.
Trapp, age 48, pled guilty to one count of “Conspiracy to Distribute Controlled Substances.” Trapp admitted to participating in a drug distribution operation in October 2018 in Monongalia County.Trapp faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Morgantown Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Opinion: The Grave Threats of White Supremacy and Far-Right ExtremismRead the Press Release
New York Times Opinion (Published February 22, 2019)
By Thomas T. Cullen, United States Attorney for the Western District of Virginia
Last week, federal agents in Maryland arrested a United States Coast Guard officer and said he was plotting to assassinate Democratic members of Congress, prominent television journalists and others. The officer, Lt. Christopher Hasson, apparently inspired by a right-wing Norwegian terrorist who slaughtered 77 people in 2011, stockpiled firearms and ammunition and researched locations around Washington to launch his attacks, according to investigators. Fortunately, the F.B.I. arrested him before he could act.
This frightening case is just one of several recent reminders that white supremacy and far-right extremism are among the greatest domestic-security threats facing the United States.
Regrettably, over the past 25 years, law enforcement, at both the federal and state levels, has been slow to respond. This is in part because of the limited number of enforcement tools available to prosecutors. But there are steps that can be taken to help the police and prosecutors address this growing threat — including, on the federal level, a domestic terrorism law.
In 2017, hate crimes, generally defined as criminal acts motivated by the victim’s race, ethnicity, religion, or gender, increased by about 17 percent nationally, to 7,175 from 6,121 (the number of police agencies reporting crimes also rose, by about 6 percent); in my state, Virginia, they were up by nearly 50 percent, to 202 from 137.
Killings committed by individuals and groups associated with far-right extremist groups have risen significantly. Seventy-one percent of the 387 “extremist related fatalities in the United States” from 2008 to 2017 were committed by members of far-right and white-supremacist groups, according the Anti-Defamation League’s Center on Extremism. Islamic extremists were responsible for 26 percent.
The rising scourge of domestic hate has been underscored by particularly heinous acts in the past few years. In 2015, an avowed white supremacist murdered nine black congregants at the Emanuel African Methodist Episcopal Church in Charleston, S.C. Last year in Kentucky, a white man with a history of making racist remarks was charged with shooting and killing two African-Americans in their 60s at a grocery store after trying to enter a nearby black church. Several months ago, an assailant shouting anti-Semitic slurs stormed the Tree of Life Synagogue in Pittsburgh with a semiautomatic rifle and murdered 11 people.
Virginia, too, has experienced extremist violence. In August 2017, several hundred people — mainly young white men heavily influenced by white-nationalist propaganda — converged on Charlottesville, ostensibly to protest the possible removal of Confederate monuments from public parks. Among other odious acts, these “Unite the Right” protesters marched with lighted torches on the campus of the University of Virginia. They chanted “Jews will not replace us!” before attacking a small group of students and counterprotesters at the base of a statue of Thomas Jefferson.
The following day, some of these Unite the Right enthusiasts attacked and injured counterprotesters in Charlottesville. Their violence culminated when a white supremacist from Ohio drove his car into a crowd of people, killing 32-year-old Heather Heyer and injuring about 30 others.
In 2009, Congress took an important step in arming federal investigators to deal with hate crimes by passing the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act. This law makes it possible to prosecute as hate crimes violent acts committed against victims because of their race, color, national origin, religion, gender, gender identity or disability. The law provides stringent maximum penalties, including life imprisonment, if someone is killed during a hate crime.
But the hate crime law has its limitations. First, it requires proof that an individual acted because of a specific proscribed animus enumerated in the statute. That means investigators must uncover concrete evidence that the defendant was primarily motivated by, for example, racist or anti-Semitic views. Although this evidence exists in many hate crimes, it proves elusive in others.
Second, because it is a federal statute, prosecutors must prove a “jurisdictional” element, such as travel by the defendant across state lines. For those hate crimes that do not involve interstate travel or communication, the law can’t be invoked.
Given these limitations, elected officials should consider providing law enforcement with additional tools. At the federal level, this could include a domestic-terrorism statute that would allow for the terrorism prosecution of people who commit acts of violence, threats and other criminal activities aimed at intimidating or coercing civilians.
State officials can update and strengthen existing hate-crime laws, many of which do not include protections for some of the categories of people listed in the federal hate crimes law. Although many states have expanded these protections, the Indiana State Senate this week moved to weaken a proposed hate crime bill. In addition, states can authorize localities to place reasonable time, place, and manner restrictions on demonstrations that will likely result in widespread violence and other criminal activity, like the rally in Charlottesville.
At both the federal and state levels, immediate steps are required to curtail the alarming rise of hate crimes and extremist violence in this country.
Okemah Man Sentenced to 48 Months Probation, $200,000 Restitution for False StatementRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Steven Paul Buie, age 57, of Okemah, Oklahoma, was sentenced to 4 years’ probation. Buie was also ordered to pay $204,857.37 in restitution for False Statement Or Fraud To Obtain Federal Employees’ Compensation, in violation of Title 18, United States Code, Section 1920. The charges arose from an investigation by the Department of the Army U.S. Army Corp. of Engineers.
The Information alleged that beginning in or about September 2015 and continuing through May 2017, within the Eastern District of Oklahoma and elsewhere, the defendant, knowingly and with intent to defraud, did willfully falsify, conceal and cover up a material fact, to-wit: his true medical condition and that he was physically capable to perform work, such concealed fact caused the payment of federal employees compensation in excess of $1,000.00.
United States Attorney Brian J. Kuester said, “A fraud perpetrated against a government agency is a fraud against us all. The funds that Buie received fraudulently are funds that are designated for those that are legitimately injured and disabled and unable to be gainfully employed because of the injury. This investigation revealed that Buie had made false statements on numerous occasions about his ability to work. As a result he is being held accountable and has been ordered to pay restitution.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. First Assistant United States Attorney Christopher Wilson represented the United States.
North Carolina Woman Sentenced to Four Months for Alien SmugglingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Carmen Melari Ferrufino Perdomo, 29, of Charlotte, North Carolina, was sentenced on February 22, 2019, to a four-month period of incarceration upon her conviction for transporting aliens who had entered the United States illegally from Canada. The prison term will be followed by a one-year period of supervised release. Ferrufino was also ordered to pay $5,100 as a special assessment in light of the nature of her crime. United States District Judge Christina Reiss ordered Ferrufino to surrender to the Bureau of Prisons on April 5, 2019.
Court records show that on March 17, 2018, Ferrufino flew from her home in North Carolina to Burlington, Vermont, where she rented a car. She then drove in the early morning of March 18, 2018, to a pre-arranged location on the United States/Canada border to pick up six persons, all aliens who had just entered the United States illegally by walking through the woods. The United States Border Patrol stopped Ferrufino a short while after she had picked up her passengers. Records show that Ferrufino intended to drive all six aliens to New York City, and to receive payment in return.
Counsel for Ferrufino argued for a sentence of six months of house arrest. Judge Reiss disagreed, noting the premeditated nature of Ferrufino's conduct, as well as the societal risks associated with Ferrufino bringing persons she did not know, who had just entered the country unlawfully, further into the United States.
The case was investigated by the United States Border Patrol.
Ferrufino was represented by Assistant Federal Defender David McColgin. Assistant United States Attorney Michael Drescher was the prosecutor.
North Carolina Marketer Agrees to Pay $414,108.08 for Allegedly Engaging in Illegal Kickback Scheme with OK CompoundingRead the Press Release
David Tsui and Wellcare Consulting, LLC, a North Carolina marketing company, have agreed to pay the government $414,108.08 for allegedly accepting illegal kickback payments from OK Compounding, LLC, announced U.S. Attorney Trent Shores.
The U.S. Attorney’s Office in the Northern District of Oklahoma entered into a settlement agreement this week with Tsui, of Chapel Hill, North Carolina, and Wellcare, in an effort to recoup the costs to the U.S. government resulting from the illegal kickbacks. This civil settlement resulted from an investigation into OK Compounding, a pharmacy previously located in Skiatook, Oklahoma.
The United States alleged OK Compounding paid substantial kickbacks to various third-party “marketers” in exchange for those marketers arranging for the referral of prescriptions for compounded drugs to the pharmacy. The kickbacks consisted of a share of the revenue that the referrals generated for OK Compounding. These arrangements violated the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b).
“I won’t allow corrupt health care professionals to exploit the federal health care system for their fraudulent, personal enrichment. My Affirmative Civil Enforcement team is prioritizing health care fraud cases,” said U.S. Attorney Trent Shores. “Federal health care dollars are to be used in accordance with the law. Dollar by dollar, corrupt defendant by corrupt defendant, we will get back the illegally obtained funds.”
Through these schemes, Tsui and Wellcare knowingly caused false claims to be presented to the Tricare and Medicare programs for the purpose of defrauding these federal programs. Because federal healthcare programs were involved, the kickbacks were also in violation of the False Claims Act.
It is illegal to pay or receive “kickbacks” in conjunction with federal healthcare insurance. Laws against kickbacks are crucial to ensure that financial motives do not undermine the medical judgment of physicians and other health care providers. The civil False Claims Act is an important tool used to protect the integrity of taxpayer-funded health care programs.
Affirmative Civil Enforcement (ACE) refers to filing civil lawsuits on behalf of the United States. The purpose of these civil actions is to recover government money lost to fraud or other misconduct or to impose penalties for violations of Federal health, safety, civil rights or environmental laws.
To report fraud and abuse against the Federal government in the Northern District of Oklahoma, please contact the U.S. Attorney’s Office at 918-382-2700 and speak to a member of the ACE Unit.
Information regarding health care fraud to Medicare can also be reported to the Department of Health and Human Services, Office of Inspector General, at https://oig.hhs.gov/fraud/report-fraud/index.asp. Information for fraud against Tricare can be reported at https://health.mil/Military-Health-Topics/Access-Cost-Quality-and-Safety/Quality-And-Safety-of-Healthcare/Program-Integrity/Fraud-and-Abuse-Report-Submission-Form.
This matter was handled by Assistant U.S. Attorney Marianne Hardcastle and is the product of a collaborative investigation by the Defense Criminal Investigative Service, Department of Labor–Office of Inspector General (OIG), IRS–Criminal Investigation, U.S. Postal Service–OIG, FBI, Department of Veterans Affairs–OIG and the Department of Health and Human Services–OIG.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Nicaraguan Man Charged with Illegal Re-EntryRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that HERVIN ADOLFO PINEDA, age 44, a native of Nicaragua, was charged Thursday, February 21, 2019 in a one-count indictment with illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to the indictment, PINEDA was previously removed from the United States on May 11, 2011. He was later found in the Eastern District of Louisiana on January 31, 2019 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
If convicted, PINEDA faces a maximum term of imprisonment of 2 years, a fine of $250,000, one year of supervised release, and a $100 special assessment fee.
U.S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
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New Jersey Man receives Three Years in Jail for Gun TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Marvin A. Jones, 24, a resident of New Jersey who recently lived in Vermont, was sentenced to 36 months imprisonment on February 20, 2019, in United States District Court in Rutland.
Jones pleaded guilty in November, 2018, to purchasing a semi-automatic pistol in Vermont and selling it in New Jersey without a license to do so. As part of a plea deal, Jones also resolved several pending, unrelated Vermont charges. Court filings indicated that Jones acquired other firearms in Vermont during the same time period.
The Bureau of Alcohol, Tobacco and Firearms initiated the investigation when the pistol sold by Jones was recovered in the State of New Jersey and found to have been originally purchased in the State of Vermont. The firearm was recovered from a New Jersey man in a stolen car, and was matched by ballistics tests to an earlier shooting in that area of New Jersey. ATF investigators conducted numerous interviews and found the pistol had been purchased by Jones as a used gun via Armslist.com from the original owner. Jones transported it from Vermont to New Jersey where he sold the firearm to an associate. He had pending Vermont felony charges at the time.
Jones was represented by Assistant Federal Public Defender David McColgin. The United States was represented by Assistant U.S. Attorney William Darrow.
Monument Man Sentenced to Prison for Tax FraudRead the Press Release
A health care products business owner, who attempted to evade the payment of more than $450,000 in income taxes, was sentenced in federal court in Denver, Colorado, today by U.S. District Court Judge Raymond Moore to 36 months in prison, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, in April 2010, Craig Walcott was notified by the Internal Revenue Service (IRS) that he owed taxes and penalties for the years 2005, 2006 and 2007, totaling $458,569. After receiving this notice, Walcott took a series of steps to prevent the IRS from collecting those taxes. He recorded fictitious deeds of trust against four properties he owned, so that they would be unattractive targets for IRS tax liens, and transferred other properties he owned to nominee entities to make it appear to the IRS that he no longer had an ownership interest in the properties. Walcott also filed false tax returns for the tax years 2005- 2007 that underreported his income for those years.
Walcott pleaded guilty on Nov. 27, 2018, to one count of attempting to evade the payment of his federal income taxes.
In addition to prison, Walcott was ordered to pay restitution to the IRS in the amount of $628,733 and to serve three years of supervised release after the completion of his sentence. Walcott was remanded into custody today.
The case was investigated by special agents of the IRS-Criminal Investigation. Tax Division Assistant Chief Andrew Kameros and Trial Attorney Lee Langston prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Monongalia County men admit to roles in a drug distribution operation in Monongalia CountyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Brian Kyle, of Maidsville, West Virginia, and Hamisi Mwawari, of Morgantown, West Virginia, have admitted to their involvement in a heroin, oxycodone, and cocaine distribution operation, United States Attorney Bill Powell announced.
Kyle, age 39, pled guilty to one count of “Unlawful Use of Communication Facility.” Kyle admitted to using a phone to further a drug distribution operation in April 2018 in Monongalia County.Mwawari, age 44, pled guilty to one count of “Unlawful Use of Communication Facility.” Mwawari admitted to using a phone to assist in distributing controlled substances in May 2018 in Monongalia County.
Kyle and Mwawari each face up to four years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the cases on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Miami Beach Resident Sentenced to 20 Years in Prison for Attempting to Entice a Minor to Engage in Sexual ActivityRead the Press Release
Jay Walter Sall, 54, of Miami Beach, was sentenced, on February 21, 2019, to a total of 240 months in prison by U.S. District Judge K. Michael Moore, for attempting to entice a minor to engage in sexual activity.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, made the announcement.
According to the court record, Sall communicated with an undercover FBI agent by text messages. In those text messages, Sall solicited and paid for the agent to record sexual intercourse between the agent and the agent’s purported 9-year-old daughter. During the course of the investigation, the FBI also learned that Sall had been secretly recording three other females, two of which were minors at the time of the recordings.
On November 29, 2018, Sall pleaded guilty to attempting to entice a minor to engage in sexual activity. On February 21, 2019, the Honorable K. Michael Moore sentenced Sall to 240 months in prison, 15 years of supervised release, payment of a $50,000 fine, and registration as a sex offender for life.
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 the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI and FBI Miami Child Exploitation Task Force in this matter. She thanked the Miami Beach Police Department for their assistance. This case was prosecuted by Assistant U.S. Attorney Daniel Cervantes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Mexican National Sentenced for Toxic Marijuana Grow in Sequoia National ForestRead the Press Release
FRESNO, Calif. — Maximiliano Farias Martinez, 49, a Mexican national, was sentenced today to five years and 10 months in prison for conspiring to cultivate marijuana on public land, U.S. Attorney McGregor W. Scott announced.
According to court documents, Farias supervised Jose Manuel Sanchez Zapien, 39, of Dos Palos, who delivered supplies in Farias’ vehicle to growers at a marijuana cultivation site in the Sequoia National Forest. Law enforcement officers found approximately 20,952 marijuana plants at the site. The cultivation operation caused extensive environmental damage. Approximately three acres were stripped of vegetation and the ground was terraced to accommodate the marijuana plants. Large amounts of ammonium nitrate and other fertilizers were found at the site. Spectracide brand insecticide containers and trash were found scattered throughout the grow site. Farias was ordered to pay $8,664 in restitution to the Forest Service to cover the clean-up cost.
Sanchez pleaded guilty to the drug conspiracy and was sentenced to 10 years in prison and ordered to pay restitution to the Forest Service.
This case was the product of an investigation by the U.S. Forest Service with assistance from Homeland Security Investigations, Office of Inspector General of the Social Security Administration, Drug Enforcement Administration (DEA), California Department of Fish and Wildlife, and Merced Area Gang and Narcotics Enforcement Team (MAGNET). Assistant U.S. Attorney Karen A. Escobar prosecuted the case.
Maryland man sentenced for drug distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Phillip Ryan Williams, of McCoole, Maryland, was sentenced today to 30 months incarceration for distributing methamphetamine, United States Attorney Bill Powell announced.
Williams, age 24, pled guilty to one count of “Distribution of Methamphetamine” in November 2018. He admitted to selling methamphetamine in Mineral County on June 13, 2018.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police, and the Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Chief U.S. District Judge Gina M. Groh presided.
Martinsburg man sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jarod Arthur Blakney, of Martinsburg, West Virginia, was sentenced today to 57 months incarceration for cocaine distribution, United States Attorney Bill Powell announced.
Blakney, also known as “Papi,” age 28, pled guilty to one count of “Distribution of Cocaine Base” in September 2018. Blakney admitted to selling cocaine base in Berkeley County in June of 2017.
The judge also ordered the forfeiture of $14,689 in cash, a 9mm pistol, two 9mm magazines, and a .22LR handgun with magazine.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Man and Woman Sentenced for Immigration Marriage FraudRead the Press Release
United States Attorney Joe Kelly announced that Faisal Garba-Adenkunjo, 29, of the Republic of Benin, was sentenced today in federal court in Omaha for conspiracy to commit immigration fraud. The Honorable Laurie Smith Camp sentenced Garba to 6 months’ imprisonment and one year of supervised release after he serves his prison term.
Farangis Gafarova, 24, of Tajikistan, was also sentenced today by Senior Judge Smith Camp. Gafarova was sentenced to five years of probation for conspiracy to commit immigration fraud and for entering into a marriage to evade the immigration laws.
Gafarova met Garba sometime in 2013 when they both attended Metropolitan Community College. Gafarova was in the United States on an F-1 Student Visa. Sometime in 2014, Garba offered to find Gafarova a United States Citizen to marry to allow her to remain in the United States once her student visa expired. Gafarova agreed and Garba recruited a United States Citizen, Jeremiah Logan, to participate in the scheme. The three defendants agreed upon an amount which Gafarova would pay to Garba and to Logan. In January of 2015, Gafarova married Logan. Logan, with the assistance of Garba and Gafarova, filed immigration paperwork on behalf of Gafarova seeking to obtain legal permanent resident status for Gafarova. The Department of Homeland Security Investigations learned of the fraudulent scheme and conducted an investigation which ultimately led to the federal indictment of all three defendants.
Immigration proceedings will now begin for both Garba and Gafarova. Jeremiah Logan is awaiting sentencing.
This case was investigated by the Department of Homeland Security Investigations and United States Citizenship and Immigration Services Fraud Detection and National Security group.
Man and Woman Plead Guilty to Distributing Heroin that Resulted in DeathRead the Press Release
St. Louis, MO – Today, Anthony Marion, a/k/a “Bird,” 33, and Lauren Nicole Martinez, a/k/a “Nikki,” 30, both from St. Charles, Missouri, entered guilty pleas related to heroin distribution that resulted in death from the use of such heroin. Marion pleaded guilty to one count of distributing heroin resulting in death. Martinez pleaded guilty to one count of heroin distribution. Both appeared before the Honorable Rodney W. Sippel to change and enter their respective guilty pleas.
According to court documents, Martinez agreed to provide two individuals with heroin on February 26, 2016. She contacted her source, Marion, who met Martinez in the parking lot of a White Castle restaurant in St. Charles, Missouri. There, Marion provided heroin to Martinez, who then provided it to the victim. At the time she distributed the heroin, Martinez described it as “strong” and cautioned the victim to be careful. During a later interview, Martinez admitted that she knew multiple people who had overdosed on heroin.
Despite learning of the individual’s death, Martinez and Marion continued to distribute heroin in the subsequent weeks and months. As part of the on-going investigation into the heroin-related death, investigators arranged and made a controlled purchased of heroin from Marion and Martinez in March 2016. On May 9, 2016, Marion was arrested in the possession of heroin and a firearm.
U.S. Attorney Jeff Jensen commended the effectiveness of the investigative team and prosecutor in achieving today’s guilty pleas, “Heroin kills. It is as simple as that. Heroin dealers -- whether they kill someone or not -- will be facing long sentences.” This investigation exemplifies both of those points.”
Sentencing for Marion is set for June 14, 2019. He faces a term of imprisonment of not less than 20 years and up to life imprisonment and a fine $1 million. Martinez’s sentencing date is June 7, 2019. She faces imprisonment of up to 20 years. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provides recommended sentencing ranges.
This case was investigated by the O’Fallon Police Department, and the St. Charles County Regional Drug Task.
Man Pleads Guilty to Providing Material Support to TerroristsRead the Press Release
St. Louis, MO – Armin Harcevic, 41, pled guilty today to an indictment in this case that charged him with one count of conspiring to provide material support to terrorists and one count of providing material support to terrorists. Harcevic appeared today before Judge Catherine D. Perry who accepted his plea and set his sentencing for June 7, 2019.
“Armin Harcevic admitted to sending money to terrorists overseas,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “By doing so, he actively supported those seeking to do harm to the U.S. and our allies.”
Charged in the indictment are: Armin Harcevic, Ramiz Zijad Hodzic, his wife Sedina Unkic Hodzic, all of St. Louis County, Missouri, Nihad Rosic, of Utica, New York, and Mediha Medy Salkicevic, of Schiller Park, Illinois. All defendants are charged with conspiring to provide material support and resources to terrorists, and with providing material support to terrorists. Ramiz Zijad Hodzic and Nihad Rosic are also charged with conspiring to kill and maim persons in a foreign country. The remaining defendants have pled not guilty. As is always the case, charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Harcevic faces up to 15 years imprisonment and/or fines of up to $250,000 for each count. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the St. Louis FBI’s Joint Terrorism Task Force, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), U.S. Postal Inspection Service, St. Louis Metropolitan and St. Louis County Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Matthew Drake, Howard Marcus and Kenneth Tihen of the Eastern District of Missouri and Trial Attorney Joshua Champagne of the Department of Justice’s Counterterrorism Section.
Man Allegedly Tried to Smuggle Cocaine Sewn into His VestRead the Press Release
NEWARK, N.J. – A resident of the Dominican Republic is scheduled to appear in federal court today for allegedly trying to smuggle into the United States approximately three kilograms of cocaine, U.S. Attorney Craig Carpenito announced.
Jose Manuel Jimenez Jimenez, 46, is charged by complaint with one count of illegal importation of more than 500 grams of cocaine. He was arrested Feb. 22, 2019, and is scheduled to appear this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to documents filed in this case and statements made in court;
Jimenez arrived at Newark Liberty International Airport on a flight from Santo Domingo, Dominican Republic. During a screening, law enforcement officers discovered the cocaine sewn into the vest Jimenez was wearing.
The count with which Jimenez is charged carries a mandatory minimum penalty of five years in prison, a potential maximum penalty of 40 years in prison, and a $5 million fine.
U.S. Attorney Carpenito credited the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Brian Michael; and officers of Customs and Border Protection, under the direction of Troy Miller, director of Field Operations, New York Field Office, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Candace Hom Esq., Assistant Federal Public Defender, Newark
Lynn CPA Pleads Guilty to Mortgage and Tax ChargesRead the Press Release
BOSTON – A Lynn accountant pleaded guilty today in federal court in Boston to assisting a multi-year mortgage fraud scheme by creating fraudulent tax returns and submitting fraudulent letters to lenders.
David Plunkett, 53, of Lynn, pleaded guilty to one count of bank fraud and one count of aiding in the submission of false tax returns. U.S. District Court Judge Richard G. Stearns scheduled sentencing for June 25, 2019.
George Kritopoulos, 46, of Salem, one of the alleged leaders of the mortgage fraud scheme, was indicted in September 2018, and has pleaded not guilty. Co-conspirator, Joseph Bates III, 38, of Lynnfield, pleaded guilty in October 2018 to one count of conspiracy, three counts of wire fraud affecting a financial institution, and two counts of bank fraud.
According to the charging documents, from 2006 through 2015, Bates and others engaged in a scheme to defraud banks and other financial institutions by causing false information to be submitted to those institutions on behalf of borrowers – people recruited to purchase properties – located primarily in Salem. The properties were usually multi-family buildings with two-to-four units, which the co-conspirators then converted into condominiums. The co-conspirators recruited other borrowers to purchase the individual condominium units, which were also financed by fraudulent mortgage loans.
The false information submitted to lenders included, among other things, representations concerning the borrowers’ employment, income, assets, and intent to occupy the property. Specifically, the false employment information included representations that borrowers were employed by entities that were, in fact, shell companies used to advance the fraudulent scheme. The employment information included false representations about the income that the borrowers received from the entities, when, in fact, the borrowers received little or no income from them. Furthermore, the income asserted on the borrowers’ loan applications substantially overstated their true income. The false information also included representations that the recruited borrowers intended to live in the properties that they were purchasing, when the borrowers, in fact, did not intend to do so.
Plunkett assisted the scheme by preparing tax returns for some of the borrowers that contained false and inflated income. Some of those tax returns were submitted to lenders in support of the fraudulent loan applications. Plunkett also signed letters falsely representing that his CPA firm had prepared corporate tax returns for one of the shell entities, when in fact no such returns had ever been prepared or filed.
Because the borrowers did not have the financial ability to repay the loans, in many instances, they defaulted on their loan payments, resulting in foreclosures and millions of dollars of losses to the financial institutions.
The charge of bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of $1 million, or twice the gross gain or loss, whichever is greater. The charge of aiding in filing a false tax return provides for a sentence of no greater than three years in prison, one year of supervised release, and a fine of $250,000, or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeastern Regional Office; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorneys Mark J. Balthazard and Sara Miron Bloom of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.