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2 April 2019
Milton Woman Arrested for Running Multimillion-Dollar Black Market Marijuana EnterpriseRead the Press Release
BOSTON – A Milton woman was arrested today and charged in federal court in Boston in connection with her ownership and management of Northern Herb, a black-market marijuana delivery service that operated in Massachusetts from 2015 to 2018.
Deana Martin, 51, was charged with one count of conspiring to distribute more than 100 kilograms of marijuana. She will appear in federal court in Boston later today.
According to the charging document, Martin owned and managed Northern Herb, which operated a website offering marijuana (including raw marijuana, pre-rolled cigarettes, and marijuana edibles) for sale. While Northern Herb purported to provide medical marijuana, it did not require a customer to provide proof of a medical marijuana card. Furthermore, it is alleged that Northern Herb would deliver marijuana to unattended locations (such as a front door or hallway) where unknown third parties might have access to it. Northern Herb used locations in Canton, Milton, Foxborough, and Hyde Park to store and distribute marijuana, and employed at least 25 workers.
It is further alleged that Martin planned for Northern Herb to use a sales team that would be incentivized based on monthly marijuana sales. One such incentivized tier, for instance, would be for selling more than 10 pounds of marijuana per month.
From May 2016 through July 2018, Northern Herb allegedly had total revenue exceeding $14 million, and Martin herself claimed an income of $80,000 per month. Martin controlled numerous bank accounts into which funds derived from Northern Herb sales were laundered, and she used several accounts in another person’s name to conceal her control over this money and to hide it from the U.S. Bankruptcy Court. Martin allegedly used money from Northern Herb sales to pay more than $300,000 towards the mortgage on her house and to buy a 2017 Porsche Boxster, among other things.
It is further alleged that Northern Herb did not withhold or pay taxes on its millions of dollars in marijuana sales. In an email referencing cannabis taxes charged by one state government, Martin wrote: “Zero taxes is still better.” Northern Herb did not remit or pay employment taxes in connection with its workforce or issue its employees W-2s or 1099s.
The charge provides for a mandatory minimum sentence of five years and no greater than 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of up to $5 million. 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The United States Postal Inspection Service also provided valuable assistance with this investigation. Assistant U.S. Attorney William Abely of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Michigan Fish Dealer Sentenced for Unlawful Trafficking in Michigan Lake TroutRead the Press Release
John H. Cross III (Cross) and John Cross Fisheries Inc. (Cross Fisheries) were sentenced yesterday in Kalamazoo, Michigan, for trafficking in illegally transported and sold lake trout, announced Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division and United States Attorney Andrew Birge for the Western District of Michigan. Cross Fisheries was also sentenced for making false records about whitefish purchases.
The two defendants previously had pled guilty to one misdemeanor count of violating the Lacey Act by knowingly selling and attempting to sell in interstate commerce lake trout, when they should have known the fish was possessed and sold in violation of underlying State law, specifically Mich. Comp. Laws, Sections 324.47333 and 324.47319 which prohibit any person from marketing, possessing, or offering for sale any fish illegally taken from the relevant waters. Cross Fisheries also pled guilty to one felony count of violating the Lacey Act by knowingly making a false record and account of whitefish that was intended to be sold and transported in interstate commerce.
Cross was ordered to serve 12 months in prison – intermittently during a five year term of probation – for his role in trafficking lake trout. Cross Fisheries was sentenced to five years’ probation. Both defendants were ordered to pay $1,032,132.00 in restitution, jointly and severally, to the National Fish Hatcheries, which stock Lake Michigan with lake trout. In addition, Cross Fisheries was ordered to create and implement a compliance plan to prevent such violations from reoccurring.
“Purchasing illegally caught fish for interstate sale and then covering up the source of those fish by falsifying records is cheating, plain and simple — and where discovered, the Justice Department will seek to punish such conduct,” said Assistant Attorney General Jeffrey Bossert Clark. “For three years, Cross Fisheries harmed law-abiding competitors and the American taxpayers who fund the stocking of Lake Michigan with trout, but that conduct has now come to an end.”
“The federally funded stocking of fish and the regulations designed to preserve these natural and communal resources were simply treated as an opportunity for extra profit here and in other cases stemming from Operation Fishing for Funds. This was essentially stealing from competitors, the government, and ultimately the future,” commented U.S. Attorney Andrew Birge.
“We are pleased to see this long-term illegal commercialization come to an end. This type of large-scale wildlife trafficking can significantly impact the sustainability of the resources we are charged to protect. This is especially relevant because we have been working for years to restore the Great Lakes fishery,” said Edward Grace, Assistant Director of the Office of Law Enforcement.
According to documents filed in court, between September 2011 and October 2013, Cross and Cross Fisheries repeatedly purchased lake trout from “Fisherman A,” who Defendants knew and should have known to be a tribal fisherman who fished from a boat that was converted to trap net gear at taxpayers’ expense and thus could not lawfully harvest lake trout. Cross and Cross Fisheries made and submitted records and accounts of these purchases stating that the seller was “Fisherman B” (who Defendants knew and should have known to be a licensed gillnet fisherman who could legally harvest lake trout).
Between approximately September 2011 and October 2013, Cross Fisheries, through its officers and employees, including Cross, made approximately forty-two purchases of lake trout from “Fisherman A,” totaling approximately 48,498 pounds, all of which was falsely reported by Cross Fisheries on its Wholesale Fish Dealer’s Purchase Records as being from “Fisherman B’s” gillnet license, and subsequently offered for sale and sold by Cross and others in interstate commerce.
This sentencing is one of the final pending cases arising from Operation Fishing for Funds, an undercover operation run for approximately two years by Special Agents of the U.S. Fish and Wildlife Service (USFWS). This undercover operation investigated the illegal harvest and sale of fish (primarily walleye and trout) taken from the Great Lakes. As part of the investigation, USFWS agents established and operated an undercover wholesale fish business in Baraga, Michigan, named Upper Peninsula North Fish Company (UPNFC). UPNFC bought and sold fish wholesale from individuals across the region, and also sold fish retail.
The Operation has resulted in twenty-one convictions, seven in tribal courts and fourteen in federal courts. To date, over $1.6 million in total restitution has been ordered to the USFWS National Fish Hatcheries and tribal fish hatcheries; this amount reflects the funds needed to restock hatchery fingerlings necessary to replace the illegally harvested fish.
The Lacey Act, 16 U.S.C. §§ 3371-3378, prohibits trafficking in fish and wildlife or plants taken, possessed, transported, or sold in violation of underlying federal, state, foreign, or Indian tribal law. The Lacey Act also prohibits making or submitting a false label, record, or account of fish, wildlife, or plant that has been or is intended to be transported in interstate or foreign commence.
Operation Fishing for Funds was investigated by the U.S. Fish and Wildlife Service Office of Law Enforcement with assistance of the Michigan and Wisconsin Departments of Natural Resources. The prosecutions were handled by prosecutors from the Environmental Crimes Section of the U.S. Department of Justice, with assistance from the U.S. Attorney’s Offices for the Western and Eastern Districts of Michigan, and the Eastern District of Wisconsin, as well as The Grand Traverse Band of the Ottawa & Chippewa Indians, the Red Cliff Band of Lake Superior Chippewa, and the Sault St. Marie Tribe of Chippewa Indians.
Mexican National Pleads Guilty to Cocaine Trafficking ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that JAIME LOPEZ, 37, a citizen of Mexico last residing in Norwalk, pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to a cocaine trafficking offense.
According to court documents and statements made in court, between March and June 2018, Lopez conspired with his brother, Rafael Lopez-Macias, and others, to traffic large quantities of cocaine. Lopez was intercepted on a court-authorized wiretap discussing the distribution of cocaine and, in May 2018, he was involved in the purchase of a kilogram of cocaine for approximately $28,000 from a source of supply in New Rochelle, New York.
Lopez has been detained since his arrest on October 11, 2018.
Lopez pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. A sentencing date is not scheduled.
On March 27, 2019, Lopez-Macias, also a citizen of Mexico, pleaded guilty to one count of possession with intent to distribute, and distribution of, 500 grams or more of methamphetamine, and one count of reentry of removed alien. He is detained while awaiting sentencing.
This matter is being investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Connecticut State Police, and the New Rochelle, Norwalk and Stamford Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Lauren C. Clark.
Mexican National Guilty of Making False Statement in Passport ApplicationRead the Press Release
TYLER, Texas –A 52-year-old Mexican national has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Baltazar Arrieta-Lara, a resident of Rusk County, Texas, pleaded guilty today to making a false statement in application for passport before U.S. Magistrate Judge K. Nicole Mitchell.
According to information presented in court, since at least 2002, Arrieta-Lara, a citizen and national of Mexico, had been living without legal immigration status in the United States. Sometime after that, Arrieta-Lara obtained the name, date of birth, and social security number of a United States citizen and fraudulently used those identifiers to obtain various documents in the name of the U.S. citizen. In 2007, Arrieta-Lara utilized the U.S. citizen’s identity to obtain a United States Passport in the citizen’s name. After obtaining this U.S. passport, Arrieta-Lara traveled between the United States and Mexico on multiple occasions between 2009 and 2016. The Department of State's National Passport Center and Diplomatic Security Services discovered Arrieta-Lara's fraudulent use of the U.S. citizen's identity when Arrieta-Lara attempted to renew the passport.
Under the federal statute, Arrieta-Lara faces up to 10 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the U.S. Department of State, Bureau of Diplomatic Security and Department of Homeland Security-Immigration and Customs Enforcement and prosecuted by Assistant U.S. Attorney Allen Hurst.
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Marketers Convicted in Kickback and Health Care Fraud SchemeRead the Press Release
St. Louis, MO – Reuben Goodwin, 53, of Richton Park, IL; Phillip Jones, 58, of Markham, IL; and Dwight McTizic, 47, of Hazel Crest, IL; were convicted by a jury today in U.S. District Court of conspiring to pay illegal kickbacks and to commit health care fraud and 11 counts of health care fraud. The trial took place before U.S. District Court Judge Audrey G. Fleissig, who scheduled the sentencing hearing for July 12, 2019.
According to trial documents, Anthony Camillo, the managing partner of AMS Medical Laboratory Inc. (AMS) in St. Louis, Missouri, paid illegal kickbacks to “marketers” Goodwin, Jones, McTizic, and others who referred specimens, such as blood, saliva, and urine, to AMS. Per the agreements with the marketers, Camillo and AMS submitted reimbursement claims to Medicare and Medicaid for tests performed on the medical specimens, although the marketers and Camillo knew the Medicare and Medicaid Programs would not pay for tests on specimens obtained by illegal kickbacks. (The Federal Anti-Kickback law prohibits payments to individuals on a per item or percentage basis in return for referring services reimbursed by Medicare and Medicaid.). Anthony Camillo paid the marketers 50% of the profit and in some instances paid the marketers as much as $200 for each specimen referred to AMS. According to trial documents, Jones, Goodwin and McTizic were associated with several health service businesses in the Chicago area and referred specimens to AMS. The specimens were often obtained at health fairs held in businesses and churches in Illinois and Indiana. In many instances, the marketers used the names of doctors on orders for tests, although the doctors did not know the patients and had never ordered the tests.
Defendants face a penalty of five years imprisonment on the conspiracy count, ten years imprisonment on each health care fraud count, and a $250,000 fine on each count.
This case was investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services, the Federal Bureau of Investigation, and the Missouri Medicaid Fraud Control Unit of the Missouri Attorney General’s Office. Assistant United States Attorneys Dorothy McMurtry and Gwendolyn Carroll handled the case for the U.S. Attorney’s Office.
Manhattan U.S. Attorney Announces Return to Its Rightful Owners of Old Master Painting Stolen by NazisRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today the return to its rightful owner of a painting looted by the Nazis during World War II. The piece, A Scholar Sharpening His Quill, painted in 1639 by Salomon Koninck (the “Painting”), was stolen from the children and heirs of renowned Jewish art collector Adolphe Schloss. Schloss was a prominent Jewish art collector in Paris whose large collection of Old Master paintings (the “Schloss Collection”) was regarded as among the most significant private collections of Dutch and Flemish paintings assembled in prewar France.
Manhattan U.S. Attorney Geoffrey Berman said: “The campaign of cultural plunder that the Nazis directed against millions of innocent Jews was sadistic and unjust. That is why restitution in this case is more than returning a material good, but restoring a physical part of lost heritage. After nearly 80 years of being lost, this painting has been found and we are returning it to the Schloss family.”
During World War II, the Nazis created a division known as the Einsatzstab Reichleiter Rosenberg (the “ERR”) in order to “study” Jewish life and culture as part of the Nazis’ propagandist mission against the Jews. Principally, the ERR confiscated artworks and other cultural holdings of “the enemies of the Reich” on a massive scale, and registered and identified those artworks – even photographing them – thereby leaving behind a detailed record of the works that they stole. ERR records and photographs of art and cultural artifacts looted by the Nazis are digitized and available in an online database created by the Conference on Jewish Material Claims Against Germany, and this database includes a photograph of the Painting taken by the ERR during World War II.
Upon the outbreak of World War II in 1939, the Schloss heirs moved the Schloss Collection from Paris to Chateau de Chambon, a township in Southern France, in an attempt to protect the collection from looting by the Nazis. Due to its value and significance, the ERR made substantial efforts to locate and loot the Schloss Collection. In 1943, the Schloss Collection was ultimately looted by the ERR from its holding place in Chateau de Chambon. The Nazis took 262 paintings from the Schloss Collection, including the Painting, and transported them to a depot located at the Jeu de Paume, a prewar museum in Paris that was operated by the ERR during the war. Ultimately, the Painting was selected by the Nazis to be transported to the the “Führerbau,” Hitler’s headquarters in Munich, from where it and many other paintings disappeared in the aftermath of the war.
The Painting resurfaced in November 2017, when a Chilean private collector (the “Consignor”) attempted to sell the painting through a New York-based auction house. When the Painting arrived in New York from Chile, it was determined that it was the same Painting that came from the Schloss collection and had been looted by the Nazis. When the Consignor was informed of this, the Consignor stated that her father had purchased the Painting from Walter Andreas Hofer in Munich in 1952. Hofer was Hermann Göring’s chief purchasing agent and as such was a key player in the confiscation and looting of Jewish art collections during the Nazi era. In 1950, after being tried in absentia by a French military tribunal for his role in art plundering during World War II, Hofer was found guilty and sentenced to 10 years in prison.
The United States Attorney’s office filed a complaint seeking civil forfeiture of the painting on October 19, 2018, and Judge George B. Daniels entered a judgment of forfeiture on March 11, 2019. The United States today returns the painting to the Schloss heirs, and welcomes two members of the family to New York to accept the painting.
Mr. Berman thanked the FBI’s Art Crime Team for their assistance.
The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorney Thane Rehn is in charge of the case.
Man Sentenced to 63 Months in Prison for Conspiring to Illegally Traffic Firearms from Georgia into the District of Columbia for ResaleRead the Press Release
WASHINGTON – Stephon Jeter, 29, of Washington, D.C., was sentenced today to a 63-month prison term on federal charges stemming from his role in a conspiracy to purchase firearms through a straw purchaser in the Atlanta, Ga. region and bring them to the District of Columbia for illegal resale.
The announcement was made by U.S. Attorney Jessie K. Liu, Peter Newsham, Chief of the Metropolitan Police Department (MPD), and Ashan M. Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Jeter pled guilty in January 2019, in the U.S. District Court for the District of Columbia, to one count of conspiring to illegally traffic in firearms and one count of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. The plea agreement, which was contingent upon the Court’s approval, called for an agreed-upon sentence of 63 months in prison to be followed by three years of supervised release. The Honorable Randolph D. Moss accepted the plea and sentenced the defendant accordingly.
The guilty plea followed an investigation by ATF, MPD, and the U.S. Attorney’s Office into a rash of firearm recoveries in the District of Columbia and surrounding areas in late 2016 and early 2017, all tied to a single straw purchaser in the Atlanta region. To date, approximately 25 firearms have been recovered in the District of Columbia or Maryland that, according to the government’s evidence, were purchased by this straw purchaser and illegally trafficked into the area by members of this conspiracy.
According to a factual proffer, beginning in or around August 2016 and continuing through mid-January 2017, Jeter conspired with others to illegally deal in firearms, travel in interstate commerce to acquire firearms for resale, and make false statements on firearm purchase forms, among other offenses. Jeter and his cousin, Quran Jeter, illegally obtained firearms from an accomplice in Atlanta. In his guilty plea, Stephon Jeter admitted that he and his cousin brought between 25 and 99 firearms from Georgia to the District of Columbia for resale.
In his plea, Jeter also admitted that he sold several firearms in the District of Columbia to people he knew, or had reasonable cause to believe, were prohibited from possessing guns because of their criminal records.
Jeter was arrested on March 9, 2018, and has been in custody ever since. At the time of his arrest in this case, Jeter was barred from possessing a firearm due to a previous conviction in Prince George’s County, Md. for assault.
Quran Jeter, 20, also of Washington, D.C., pled guilty on Oct. 30, 2018, to conspiring to illegally traffic in firearms. He is to be sentenced on June 12, 2019.
This case is being investigated by ATF, MPD, and a former Criminal Investigator of the U.S. Attorney’s Office now with the U.S. Postal Inspector’s Service. It is being prosecuted by Assistant U.S. Attorneys Kevin L. Rosenberg and William Schurmann of the Violent Crime and Narcotics Trafficking Section of the U.S. Attorney’s Office for the District of Columbia, with assistance from Paralegal Specialists Jeannette Litz and Katie Cowley.
Louisburg, NC Woman Sentenced to 3 Years in Federal Prison for Felon in Possession ChargeRead the Press Release
RALEIGH – Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that United States District Judge James C. Dever, III sentenced LINDSEY NICOLE UNDERHILL, 28, of Louisburg to 36 months’ imprisonment, followed by 3 years of supervised released.
On October 18, 2018, UNDERHILL was named in an Indictment that charged her with Possession of Firearms by a Felon. On January 7, 2019, UNDERHILL pled guilty to that charge.
On May 30, 2018, UNDERHILL, a convicted felon, traveled to Arrow Pawn and Jewelry located in Raleigh, North Carolina, and pawned three firearms: a Mossberg 12 gauge shotgun; a Hi-Point 9mm handgun; and a North American Arms .22 caliber revolver.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was brought using the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violence crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Raleigh Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant United States Attorney Daniel W. Smith prosecuted the case for the government.
Local Medical Clinic Agrees to Settle Americans with Disabilities Act AllegationsRead the Press Release
NASHVILLE, Tenn. – April 2, 2019 - Murfreesboro Medical Clinic (MMC) has agreed to adopt a written Americans with Disabilities Act (ADA) nondiscrimination policy and pay $2,500 in compensatory damages to resolve ADA allegations, announced Don Cochran, United States Attorney for the Middle District of Tennessee. MMC has also agreed to provide ADA compliance training to its staff members who may interact with individuals with disabilities.
“The protections of the ADA are critically important to citizens with disabilities, particularly in obtaining necessary medical treatment,” said U.S. Attorney Cochran. “This is especially true of our senior population, and this office will continue its efforts to enforce the requirements of the ADA and its enacting regulations.”
MMC is a physician owned, multi-specialty clinic and an Accredited Surgery Center located in Murfreesboro, Tennessee, that provides a wide variety of medical and surgical procedures in over 20 specialties. MMC also operates five additional healthcare locations in Tennessee, including walk-in clinics in Murfreesboro and a spine, joint, and pain facility in Manchester.
The settlement resolves allegations made by a woman who is disabled and uses a wheelchair, who was denied medical treatment at the office of Dr. Joseph Boone due to her inability to transfer from her wheelchair to an examination chair. The woman alleged that MMC had informed her that she would need to bring someone with her to her appointment to help her transition to the examination chair, and then refused to make reasonable modifications to its practices in order to perform her examination. This forced her to seek care at a different medical facility further away from her home.
This case is a product of the Elder Justice Task Force of the United States Attorney’s Office for the Middle District of Tennessee, and part of the Department of Justice’s Elder Justice Initiative. For more information about the Elder Justice Task Force and the Department’s Elder Justice Initiative, visit their websites at https://www.justice.gov/usao-mdtn/elder-justice-task-force and https://www.justice.gov/elderjustice/.
Assistant United States Attorney Christopher C. Sabis handled the matter on behalf of the United States.
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Kewaunee Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that earlier today, a federal grand jury returned an indictment against Kyle D. Sanderson (age: 19) of Kewaunee, Wisconsin.
According to the indictment, Sanderson distributed and possessed images of child pornography including sexually explicit images of children and toddlers.
Sanderson faces two counts of distribution of child pornography, contrary to Title 18, United States Code, Section 2252A(a)(2)(A), and an additional count of possession of child pornography, contrary to Title 18, United States Code, Section 2252A(5)(b). As to each of the distribution counts, he faces a mandatory minimum sentence of 5 years and up to 20 years of incarceration in federal prison.
This case was investigated by the Wisconsin Department of Justice’s ICAC Task Force. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the 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.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Indiana Man Sentenced to 10 Years in Prison on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Derek Carlson, 30, of Lafayette, Indiana, who was convicted of distribution of child pornography, was sentenced to serve 10 years in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that on September 28, 2017, the defendant sent a private message via Kik Messenger, to an undercover officer containing images of child pornography, including a prepubescent child involved in a sexual situation with an adult. During the following months, Carlson continued to send the undercover officer similar images and videos containing child pornography. Some of the videos and images depicted prepubescent children engaged in sexual conduct with adults, and children subjected to violent abuse.
On April 25, 2018, law enforcement officers executed a search warrant at the defendant’s residence and seized multiple electronic devices, which contained approximately 320 videos and 452 images depicting child pornography.
The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Huntington Man Pleads Guilty to Federal Methamphetamine CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who was caught with methamphetamine at his residence last summer pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Davon Travis-Jones Keith, 26, entered a guilty plea to possession with intent to distribute methamphetamine in federal court in Huntington. Stuart commended the investigative efforts of the Huntington Police Department and Parole Services with the West Virginia Division of Corrections and Rehabilitation.
“Great work by the Huntington Police Department and Parole Services,” said United States Attorney Mike Stuart. “Partnerships between law enforcement and corrections enhance public safety.”
On July 11, 2018, Keith’s parole officer conducted a home inspection at Keith’s residence located at 1342 Van Buren Avenue in Huntington. Keith was located in the residence and the officer conducted a search. The officer subsequently observed and seized almost 60 grams of crystal methamphetamine which was located on the top of a dresser in Keith’s bedroom. Keith admitted at the hearing that he possessed the methamphetamine and intended to distribute it.
Keith faces up to 20 years in federal prison when he is sentenced on July 15, 2019.
Assistant United States Attorney Joseph F. Adams is handling the prosecution. United States District Judge Robert C. Chambers presided over the plea hearing.
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Gray Court Felon Sentenced to More Than Two Years in Federal Prison on Gun ChargeRead the Press Release
Florence, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Derrick Bernard Cunningham, age 48, of Gray Court, South Carolina, was sentenced in federal court after pleading guilty to being a Felon in Possession of a Firearm. Chief United States District Judge R. Bryan Harwell of Florence sentenced Cunningham to 27 months in federal prison, followed by 3 years of court-ordered supervision. There is no parole in the federal system.
Evidence presented at Cunningham’s guilty plea hearing established that on May 26, 2018, a lieutenant with the South Carolina Law Enforcement Division (SLED) located Cunningham, who was wanted for outstanding warrants, at a hotel in North Myrtle Beach, South Carolina. Cunningham was detained and placed in handcuffs, and the lieutenant noted that Cunningham continually tried to roll onto his left side. The lieutenant observed a heavy object in a pocket of the vest Cunningham was wearing. Cunningham claimed he did not know whether the object was a firearm and that he had borrowed the vest from a friend. A search revealed a Jiminez .380 caliber handgun, loaded with six rounds of ammunition. Federal law prohibits Cunningham from possessing firearms because he has prior state convictions for grand larceny, burglary, and armed robbery.
The charges against Cunningham were the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), SLED, and the North Myrtle Beach Police Department. This case was prosecuted as part of the joint federal, state, and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is part of Project Safe Neighborhoods (PSN), a crime reduction strategy originally launched in 2001 that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Turning the tide of rising violent crime in America is a top priority for the Department of Justice, which has reinstituted PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy. Assistant United States Attorney Lauren Hummel of the Florence office prosecuted the case.
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Georgia man admits to distributing methamphetamineRead the Press Release
WHEELING, WEST VIRGINIA – Spencer Lee Sarver, of Springfield, Georgia, has admitted to distributing methamphetamine, United States Attorney Bill Powell announced.
Sarver, age 63, pled guilty to one count of “Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine.” Sarver admitted to distributing methamphetamine from January 2017 to September 2018 in Wetzel County.
Sarver 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 Shawn M. Adkins is prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Monroe County, Ohio Sheriff’s Office; and the New Martinsville Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Four Additional People Charged in Conspiracy to Distribute Heroin and Fentanyl from Bronx, New York, Drug MillRead the Press Release
NEWARK, N.J. – Four men have been charged after they were arrested in New York for their participation in a conspiracy to distribute heroin and fentanyl, U.S. Attorney Craig Carpenito announced today.
Eddy Urena Rodriguez, 34, Daury Contreras Ulerio, 34, Reimon Genao Rosario, 22, and Francisco Mercedes Gil, 30, all of Bronx, New York, are charged by complaint with one count of conspiracy to possess with intent to distribute approximately 100 grams or more of heroin and fentanyl. Rodriguez appeared today before U.S. Magistrate Judge Mark Falk and was detained. Ulerio, Rosario, and Gil all appeared last week before U.S. Magistrate Judge Steven C. Mannion and were detained.
Previously, three other individuals – Jhan Carlos Capellan Maldonado, 30, Jose Antonio Vasquez Pena, a/k/a “Tono,” 46, and Dilson Vasquez Genao, 22 – were arrested and detained after appearing before U.S. Magistrate Judges Joseph A. Dickson and Michael A. Hammer.
According to documents filed in this case and statements made in court:
In early February 2019, law enforcement officers learned Maldonado used an apartment in the Bronx to store, mix, and package heroin and fentanyl in quantities for distribution. Pena lived at the apartment in order to safeguard the narcotics and narcotics supplies. Maldonado employed five workers at a time – including Rodriguez, Ulerio, Rosario, Gil, and Genao – to assist in preparing the heroin and fentanyl for distribution, which Maldonado then distributed to customers in New Jersey.
On Feb. 25, 2019, law enforcement officers saw Maldonado drive to a retail store and emerge with several full shopping bags and then drive to the apartment. Genoa came out of the building and met with Maldonado, who got out of his vehicle and gave Genoa the plastic shopping bags. The plastic shopping bags contained materials to package heroin and fentanyl.
Genoa went back inside the building and was followed by law enforcement officers, who watched as Genoa entered Maldonado’s apartment with a key, still carrying the shopping bags. On Feb. 27, 2019, law enforcement searched Maldonado’s apartment and found seven individuals inside, including Rodriguez, Ulerio, Rosario, Gil, Maldonado, Pena, and Genao. All seven defendants attempted to escape out a window in the bedroom, and all but one were apprehended and arrested by law enforcement officers waiting outside.
Each defendant faces a mandatory minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine.
U.S. Attorney Craig Carpenito credited the Homeland Security Investigations (HSI)’s New Jersey Division, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the Opioid Abuse Prevention and Enforcement Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former UAW Vice President Pleads Guilty to Conspiracy with Fiat Chrysler ExecutivesRead the Press Release
Norwood Jewell, the former Vice President of the UAW and the highest official in the UAW’s Chrysler Department, pleaded guilty today to conspiring with other UAW officials and Fiat Chrysler executives to make illegal payments to union officials announced U.S. Attorney Matthew Schneider.
Joining in the announcement were Irene Lindow, Acting Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Timothy R. Slater, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Manny Muriel, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.
Norwood Jewell, 61, of Swartz Creek, Michigan pleaded guilty to conspiring to violate the Labor Management Relations Act by accepting, arranging for, and approving illegal payments from Fiat Chrysler executives to high-level UAW officials from 2014 through 2016. After the now-deceased UAW Vice President General Holiefield retired in 2014, Jewell and other UAW officials began running the UAW’s Chrysler Department, responsible for dealing with executives at Fiat Chrysler. During the plea hearing, Jewell admitted to participating in a conspiracy that had existed at least from 2009 through 2016 whereby Fiat Chrysler executives conspired with one another, with Fiat Chrysler, with UAW officials, and with the UAW to funnel money and things of value worth millions of dollars from Fiat Chrysler to UAW officials and the UAW. Fiat Chrysler and the UAW, and their executives and officials, used the joint UAW-Chrysler National Training Center in order to conceal and make the payoffs from Fiat Chrysler to senior UAW officials.
The things of value funneled to UAW officials from Fiat Chrysler included personal travel, golf resort fees, lavish meals and parties, theme park tickets at Disney World and Universal Studios, limousine services, designer clothing, designer shoes, golf equipment, electronics, and custom-labeled bottles of wine. Jewell admitted that in 2014 he had knowingly joined a “culture of corruption” and a conspiracy at the UAW that had been in place since 2009, whereby Fiat Chrysler illegally paid for lavish entertainment and other things of value for UAW officials.
Jewell himself admitted to approving tens of thousands of dollars in extravagant meals for high-level UAW officials paid for by Fiat Chrysler at Detroit’s London Chop House and at multiple high-end steakhouses in Palm Springs, California in 2015 and 2016. For example, in July 2015, Fiat Chrysler paid $8,494.37 so that the UAW’s National Negotiating Committee, including Jewell, could dine at the London Chop House right before collective bargaining negotiations with Fiat Chrysler began. After the UAW and Fiat Chrysler negotiated a new collective bargaining agreement in September 2015, Fiat Chrysler paid $6,912.81 for the UAW’s negotiators, including Jewell, to again dine at the London Chop House in order to celebrate. The agreement that had been negotiated was then voted down by the UAW’s membership. Jewell and other UAW officials also accepted almost ten thousand dollars from Fiat Chrysler through the National Training Center in order to pay for multiple rounds of golf at the Indian Canyons Golf Resort in Palm Springs for senior UAW officials.
As part of his plea, Jewell stated that other Fiat Chrysler executives continued the conspiracy to make illegal payoffs to senior UAW officials up through the end of 2016 after co-defendants and Fiat Chrysler executives Alphons Iacobelli and Jerome Durden left the company in June 2015.
Jewell is the eighth defendant to plead guilty in connection with the ongoing criminal investigation into illegal payoffs involving UAW officials and FCA executives. The following individuals have already pleaded guilty to their participation in the scheme and have been sentenced: former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), and Nancy A. Johnson (12 months in prison), and Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison).
U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
“Today’s conviction of a UAW Vice President demonstrates that our efforts to clean up labor corruption will not rest until the 400,000 UAW members and their families are represented by union officials of honor and integrity,” said United States Attorney Matthew Schneider. “Labor leaders must always put the best interests of the hard working men and women of the union over their own personal interests.”
“Mr. Jewell chose to forsake his obligation to serve the rank and file of the UAW when he accepted and authorized his subordinates to spend in excess of $40,000 in FCA funds on lavish meals, liquor, and entertainment. We will continue to work with our law enforcement partners to investigate those who facilitate illegal payments to union officials entrusted to negotiate on behalf of union members,” said Irene Lindow, Acting Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
"Mr. Jewell’s criminal actions were an effort to enrich himself and his colleagues at the expense of dues-paying UAW members and denied those same hard-working men and women the assurance that union leadership was bargaining in their best interests," said SAC Slater. "The FBI will continue to work alongside our federal partners to expose these conspiracies and ensure those who violate the law are held accountable.”
“Mr. Jewell callously conspired with other UAW officials and Fiat Chrysler executives to accept illegal payments from funds meant for the hard working rank and file members of the UAW. IRS-CI is prepared to investigate any disregard of fiduciary responsibilities entrusted to corporate and union officials who aim to selfishly enrich their own pockets.”
“Protecting members against corruption perpetrated by their union leaders is critical to the mission of OLMS,” said Thomas Murray, District Director of the Office of Labor-Management Standards (OLMS) Detroit-Milwaukee District Office. “We will continue to work cooperatively with our law enforcement partners to ensure that anyone who abuses their union position for personal financial gain will be brought to justice.”
The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, Erin Shaw, and Steven Cares.
Former Salesman of Porsche Dealership Charged in $2.2 Million Fraud Scheme Involving Non-Existent Rare Porsche ModelsRead the Press Release
A former salesman for Copans Motorsports d/b/a Champion Porsche was charged by criminal complaint for his participation in a scheme in which he entered into bogus sales orders for the sale of exotic Porsche models to over 30 customers throughout the United States.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Gregory Tony, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
A criminal complaint charged Shiraaz Sookralli, 44, of Plantation, with mail fraud, wire fraud, conspiracy to commit mail and wire fraud, and money laundering. Sookralli made his initial appearance earlier today, and is scheduled to appear before U.S. Magistrate Judge Patrick M. Hunt on Friday, April 5, at 10:00 a.m. for his pretrial detention hearing.
According to the criminal complaint, in 2017, Sookralli opened a shell corporation with a name bearing a close resemblance to both Champion Porsche and another corporate affiliate of the dealership. After forming the shell corporation, Sookralli opened a bank account in the shell corporation’s name. Sookralli then entered into bogus sales orders with customers for the unauthorized sales of non-existent future exotic Porsche models. The majority of the vehicles were rare, highly sought-after, Carrera 911 models. The defendant required deposits from his victims in the form of, wire transfers, bank checks, and cash that he later deposited into his shell company’s bank account. The buyers relied on Sookralli’s longtime employment at Champion Porsche, title as “Vice President of Marketing,” representations that he or she would receive a yet-to-be-built Porsche vehicle, and the seemingly legitimate bank account for wiring deposits to Sookralli. Champion Porsche did not authorize Sookralli to conduct these transactions.
The complaint also alleges that Sookralli received over $2,200,000 from approximately 30 customers who never received the Porsche vehicles, as agreed. As set forth in the complaint, the defendant used the money for extravagant expenditures including luxury vehicles, jewelry, nightclubs, and restaurants. Sookralli also funneled amounts in excess of $10,000 at a time from his shell company account to bank accounts he controlled.
After Champion Porsche uncovered Sookralli’s fraud scheme, it contacted his victims and began its cooperation with the criminal investigation.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, IRS-CI, and BSO in this matter. The case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
A criminal complaint is merely an allegation and every defendant is presumed innocent until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Congressional Staffer Sentenced to Prison for Extensive Fraud and Election Crimes SchemeRead the Press Release
HOUSTON - A former congressional staffer was sentenced today for participating in a multi-year scheme to defraud charitable donors of hundreds of thousands of dollars. He also secretly funneled the proceeds to pay for personal expenses and illegally finance campaigns for federal office.
U.S. Attorney Ryan K. Patrick made the announcement along with Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Assistant Director in Charge Nancy McNamara of FBI’s Washington Field Office and Acting Special Agent in Charge Sarah Kull of IRS - Criminal Investigation (CI) Houston Field Office.
Jason T. Posey, 48, of Tupelo, Mississippi, pleaded guilty Oct. 11, 2017, to one count of mail fraud, one count of wire fraud and one count of money laundering. Today, Chief U.S. District Judge Lee H. Rosenthal of the Southern District of Texas sentenced Posey to 18 months in prison to be immediately followed by three years of supervised release. Posey was also ordered to pay $564,718.65 in restitution and $156,855.29 in forfeiture.
As part of his plea, Posey admitted he participated in a scheme that former U.S. Representative Stephen E. Stockman, 62, led. A federal jury in Houston convicted Stockman April 12, 2018, of 23 counts of mail fraud, wire fraud, conspiracy to make conduit contributions and false statements to the Federal Election Commission (FEC), making false statements to the FEC, making excessive coordinated campaign contributions, money laundering and filing a false tax return. Another of Stockman’s former congressional staffers, Thomas Dodd, 40, of Houston, pleaded guilty March 20, 2017, to one count of conspiracy to commit mail and wire fraud and one count of conspiracy to make conduit contributions and false statements. On Dec. 12, 2018, Judge Rosenthal sentenced Dodd to serve 18 months in prison followed by three years of supervised release and ordered him to pay $800,000 in restitution,
According to Posey’s admissions in connection with his guilty plea, from January 2013 to February 2014, he assisted Stockman in fraudulently soliciting $800,571.65 in donations from charitable organizations and the individuals who ran those organizations based on false pretenses. He then used a series of sham nonprofit organizations and dozens of bank accounts to launder the money before he spent it on a variety of personal and campaign expenses.
Specifically, Posey admitted that shortly after Stockman took office as a member of the U.S. House of Representatives in 2013, Stockman and Dodd used the name of one sham nonprofit entity, Life Without Limits, to solicit and receive a $350,000 charitable donation. The money was to be used to create an educational center called the Freedom House. Stockman, Dodd and Posey instead used this donation for a variety of personal and campaign expenses, including illegal conduit campaign contributions, and payments for hundreds of thousands of robocalls and mailings promoting Stockman’s candidacy for U.S. Senate in early 2014.
In addition, Posey admitted that, in connection with Stockman’s Senate campaign, Stockman and Posey used another sham nonprofit entity called Center for the American Future to secure a $450,571.65 donation. They used that money to fund a purportedly legitimate independent expenditure promoting Stockman’s candidacy. Posey admitted Stockman secretly controlled the purportedly independent expenditure and directed his campaign and Posey to file false affidavits with the FEC covering up Stockman’s involvement.
In addition, Posey admitted that during the early stages of the investigation, Stockman directed Posey to flee to Cairo, Egypt, for nearly three years so law enforcement could not question him.
The FBI and IRS-CI conducted the investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the case along with Deputy Chief Robert J. Heberle and Trial Attorney Ryan J. Ellersick of the Criminal Division’s Public Integrity Section.
Former Congressional Staffer Sentenced to Prison for Extensive Fraud and Election Crimes SchemeRead the Press Release
A former congressional staffer was sentenced today to 18 months in prison followed by three years of supervised release and ordered to pay $564,718.65 in restitution and $156,855.29 in forfeiture, for participating in a multi-year scheme to defraud charitable donors of hundreds of thousands of dollars and secretly funnel the proceeds to pay for personal expenses and illegally finance campaigns for federal office.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Assistant Director in Charge Nancy McNamara of FBI’s Washington Field Office and Acting Special Agent in Charge Sarah Kull of IRS - Criminal Investigation (CI) Houston Field Office made the announcement.
Jason T. Posey, 48, of Tupelo, Mississippi, was sentenced in the U.S. District Court for the Southern District of Texas by Chief U.S. District Judge Lee H. Rosenthal. Posey pleaded guilty on Oct. 11, 2017, to one count of mail fraud, one count of wire fraud and one count of money laundering. As part of his plea, Posey admitted that he participated in a scheme led by former U.S. Representative Stephen E. Stockman, 62, who was convicted by a federal jury in Houston on April 12, 2018, of 23 counts of mail fraud, wire fraud, conspiracy to make conduit contributions and false statements to the Federal Election Commission (FEC), making false statements to the FEC, making excessive coordinated campaign contributions, money laundering and filing a false tax return. Another of Stockman’s former congressional staffers, Thomas Dodd, 40, of Houston, Texas, pleaded guilty on March 20, 2017, to one count of conspiracy to commit mail and wire fraud and one count of conspiracy to make conduit contributions and false statements. On Dec. 12, 2018, Dodd was sentenced to serve 18 months in prison and ordered to pay $800,000 in restitution, to be followed by three years of supervised release.
According to the admissions made by Posey in connection with his guilty plea, from January 2013 to February 2014, Posey assisted Stockman in fraudulently soliciting $800,571.65 in donations from charitable organizations and the individuals who ran those organizations based on false pretenses, then using a series of sham nonprofit organizations and dozens of bank accounts to launder the money before it was spent on a variety of personal and campaign expenses.
Specifically, Posey admitted that shortly after Stockman took office as a member of the U.S. House of Representatives in 2013, Stockman and Dodd used the name of one sham nonprofit entity, Life Without Limits, to solicit and receive a $350,000 charitable donation, to be used to create an educational center called the Freedom House. Stockman, Dodd, and Posey instead used this donation for a variety of personal and campaign expenses, including illegal conduit campaign contributions, and payments for hundreds of thousands of robocalls and mailings promoting Stockman’s candidacy for U.S. Senate in early 2014.
In addition, Posey admitted that, in connection with Stockman’s Senate campaign, Stockman and Posey used another sham nonprofit entity called Center for the American Future to secure a $450,571.65 donation in order to fund a purportedly legitimate independent expenditure promoting Stockman’s candidacy. Posey admitted that the purportedly independent expenditure was in fact secretly controlled by Stockman, who directed his campaign and Posey to file false affidavits with the FEC covering up Stockman’s involvement.
In addition, Posey admitted that during the early stages of the investigation, Stockman directed Posey to flee to Cairo, Egypt, for two and a half years so that Posey could not be questioned by law enforcement.
The FBI and IRS-CI investigated the case. Deputy Chief Robert J. Heberle and Trial Attorney Ryan J. Ellersick of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Melissa Annis of the Southern District of Texas prosecuted the case.
Former Chairman of the Village of Hempstead Housing Authority Convicted by A Federal Jury of Corruption ChargesRead the Press Release
A federal jury in Central Islip returned a guilty verdict today against Cornell Bozier, the former Chairman of the Board of Commissioners at the Village of Hempstead Housing Authority (VHHA) on four counts of an indictment charging him with conspiracy to commit honest services wire fraud and federal program bribery. The verdict followed a two-week trial before United States District Judge Joan M. Azrack. When sentenced, Bozier faces a maximum sentence of 20 years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Christina Scaringi, Special Agent-in-Charge, U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Region (HUD-OIG), announced the verdict.
“As found by the jury, having been trusted to serve the residents of low-income housing as a Village of Hempstead public official, Bozier instead lied, cheated and stole federal funds for himself,” stated United States Attorney Donoghue. “If, like Mr. Bozier, you betray the public you are hired to serve, expect to find yourself in a courtroom facing the consequences.”
“Plain and simple, this is a case of greed; Bozier and his co-conspirators engaged in public corruption for personal gain,” said HUD-OIG Special Agent-in-Charge Scaringi. “We are not talking about the abstract here, this is a case involving real money that should have been used to improve the lives of those living within the public housing authority that these offenders were entrusted to serve.”
The evidence at trial established that between March 2011 and November 2012, Bozier engaged in schemes with his co-conspirators – contractors James Alimonos and Peter Caras – to defraud the citizens of the Village of Hempstead (the Village) and the VHHA by soliciting and accepting bribes and kickbacks in exchange for Bozier using his official position to ensure that the Board of Commissioners (the Board) accepted fraudulently submitted bids for VHHA construction projects. The VHHA is responsible for providing and maintaining safe and affordable low-income housing in the Village. As chairman, Bozier controlled the Board and could bypass HUD regulations for bidding and for awarding construction projects.
The Totten Avenue Intercom Project
In August 2011, Bozier fraudulently obtained an “emergency” designation from the Board for repair of the intercom system at a VHHA on Totten Avenue in the Village without the public bid requirement to ensure that the contract was awarded to the lowest qualified bidder. Alimonos then directed another co-conspirator to submit a falsely inflated bid of $95,740 to replace the intercom system. Alimonos paid Bozier approximately $30,000 for securing the Board’s acceptance of the fraudulent bid.
The Yale Street Roof Project
In September 2011, the VHHA received four proposals from companies controlled by Alimonos to replace the roof of a building on Yale Street in the Village. Bozier accepted a bid of $248,000, although the bid lacked the required paperwork. Bozier then secured the Board’s approval, and the VHHA paid a total of $273,900 for the project. Thereafter, Alimonos hired another construction company to replace the roof for $23,000. In return, Bozier received a kickback of approximately $55,000 from his co-conspirators.
The Gladys Avenue Piping Project
In July 2012, the VHHA received two proposals from companies controlled by Alimonos to repair the boiler piping system at a building on Gladys Avenue in the Village. Bozier ensured that the $164,000 contract was awarded to a company established in the name of Alimonos’s wife, although the bid lacked the required supporting information. Alimonos then hired another construction company to do the repair work for approximately $26,000. In return, Bozier received approximately $30,000 in kickback payments from Alimonos and Caras.
Alimonos and Caras previously pleaded guilty to honest service fraud conspiracy and testified at trial against Bozier. Both are awaiting sentencing.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Paul G. Scotti and Artie McConnell are in charge of the prosecution. Assistant United States Attorney Madeline O’Connor of the Office’s Civil Division is handling matters related to forfeiture.
The Defendant:
CORNELL BOZIER
Age: 58
North Baldwin, New YorkE.D.N.Y. Docket No. 15-CR-303 (JMA)
Former Alabama Correctional Sergeant Pleads Guilty to Assaulting InmatesRead the Press Release
The Department of Justice today announced that former Alabama Department of Corrections (ADOC) Sergeant Ulysses Oliver Jr., 44, pleaded guilty today in federal court to assaulting two handcuffed inmates at ADOC’s Elmore Correctional Facility.
According to the guilty plea, Oliver went to an observation room holding the two inmate victims, who were both handcuffed and sitting quietly. Oliver pulled the first victim from the observation room into an adjacent hallway, where he struck the victim multiple times with his fists and feet, and then used his collapsible baton to strike the victim approximately 19 times. After assaulting the first victim, Oliver returned to the observation room and pulled the second victim into the hallway. Oliver kicked the second victim and used his baton to strike the victim approximately 10 times. During the assaults, the victims were handcuffed, and were not resisting or posing a threat. After, Oliver returned to the observation room where the victims were held and shoved the tip of his baton into the face of one of the victims, lacerating the victim’s face.
Later, Oliver wrote a false written report concerning the assaults, stating that he only struck the victims on their legs with his baton, when he actually struck the victims about their bodies, and also hit the victims with his hands and feet. Oliver’s report also falsely stated that he struck the victims until he was told by another officer to stop, when in truth the other officer had not ordered Oliver to stop.
“Any abuse of power and use of violence by a correctional officer will not be tolerated,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will continue to enforce our nation’s laws and will prosecute those who break the public trust and violate the civil rights of individuals in their custody.”
“Correctional officers have an incredibly difficult job,” stated U.S. Attorney Louis V. Franklin Sr. from the Middle District of Alabama. “Although a vast majority of them serve with honor, valor, and bravery, cases like this make their jobs more challenging and dangerous. When officers abandon their oath to protect and serve, and engage in conduct that is criminal, they too must be held accountable. This office is committed to prosecute anyone who violates the law."
"Conduct like that of Mr. Oliver will not be tolerated and the Department of Corrections will work with all of its law enforcement partners to ensure that such behavior is thoroughly investigated and appropriately prosecuted," said Alabama Commissioner of Corrections Jefferson S. Dunn.
Oliver faces a statutory maximum sentence of 20 years in prison.
This case is being investigated by the FBI’s Mobile Division and ADOC’s Investigations and Intelligence Division. It is being prosecuted by Assistant U.S. Attorney Denise Simpson of the Middle District of Alabama, and Special Legal Counsel Mark Blumberg, Special Litigation Counsel Jared Fishman, and Trial Attorney David Reese of the Civil Rights Division.
Florida Man Sentenced in Puerto Rico to Rhode Island Drug Trafficking ConspiracyRead the Press Release
PROVIDENCE – The second of two Florida men charged with participating in a conspiracy to, on multiple occasions, traffic multi-kilogram shipments of cocaine through the U.S. Postal Service from Puerto Rico into Rhode Island has been sentenced to 84 months in federal prison.
Gabriel Concepcion, 29, of Kissimmee, FL, pleaded guilty in U.S. District Court in Providence in October 2019 to conspiracy to distribute and to possess with the intent to distribute 500 grams or more of cocaine. At sentencing, U.S. District Court Judge John J. McConnell, Jr., sentenced Conception to 84 months imprisonment to be followed by a term of supervised release of four years.
A co-defendant in this matter, Rinaxo M. Rufino, 34, of Miramar, FL, was sentenced on January 18, 2019, to 36 months in federal prison to be followed by 2 years of supervised release. Rufino pleaded guilty on September 12, 2018, to conspiracy to possess with intent to distribute cocaine.
The sentences are announced by United States Attorney Aaron L. Weisman, Inspector in Charge of the U.S. Postal Inspection Service Joseph W. Cronin, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division Brian D. Boyle, and Superintendent of the Rhode Island State Police Colonel James M. Manni.
According to court documents and information presented to the Court, Concepcion conspired with Rufino to receive at least three multi-kilogram shipments of cocaine shipped through the U.S. Postal Service from Puerto Rico to residences in Central Falls and Cumberland. Each shipment contained approximately three kilograms of cocaine.
The packages were intercepted and seized by U.S. Postal Inspectors prior to delivery to the intended recipients. The two men were arrested on August 26, 2017, by U.S. Postal Inspectors agents, members of the Rhode Island State Police High Intensity Drug Trafficking Area (HIDTA) Task Force, and members of the Rhode Island DEA Drug Task Force.
Rufino was taken into custody when he attempted to retrieve a package containing 3,029 grams of cocaine addressed to a Central Falls residence. U.S. Postal Inspectors identified cocaine in the package prior to delivery and removed the controlled substance. In its place inspectors placed similarly weighted non-contraband material. Concepcion was arrested moments later in the vicinity of the Central Falls residence.
Additionally, during the investigation into Concepcion and Rufino’s drug trafficking activities, a package addressed for delivery to a residence in Cumberland that contained approximately 3007.2 grams of cocaine was seized by Postal Inspectors on August 25, 2017. Another package addressed for delivery to a Central Falls residence which contained approximately 3006.9 grams of cocaine was seized by Postal Inspectors on August 28, 2017.
The cases were prosecuted by Assistant U.S. Attorneys Paul F. Daly, Jr. and Milind M. Shah.
The Rhode Island DEA Drug Task Force is comprised of law enforcement personnel from the DEA, Rhode Island State Police, and East Providence, Central Falls, Coventry, Cranston, Newport, North Kingstown, Pawtucket, Providence, South Kingstown, Warwick, West Warwick and Woonsocket Police Departments.
The HIDTA Task Force is managed by the Rhode Island State Police and is comprised of members of the Pawtucket, West Warwick, Lincoln, and Middletown Police Departments, ATF, DEA, Bureau of Immigration and Customs Enforcement-Homeland Security Investigations, Rhode Island Department of Corrections, and Analysts from the Rhode Island National Guard.
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Florida Keys Preparer Sentenced to Five Years for Filing Fraudulent Tax Returns That Resulted in an Aggregate Loss to the IRS of $14,500,000Read the Press Release
A Monroe County, Florida tax return preparer was sentenced today to 60 months imprisonment after he pled guilty to filing fraudulent tax returns with the Internal Revenue Service (IRS).
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to documents filed with the court, Pedro C. Rodriguez, 51, of Marathon, owned and operated the JC Mar Tax Services tax preparation business, located in Marathon, Florida. From approximately 2007 through 2017, Rodriguez filed fraudulent returns for his clients seeking refunds to which the clients were not entitled by reporting fictitious itemized deductions and fraudulent education and residential energy credits. For each of the years 2013 through 2017, Rodriguez submitted between 1,900 and 2,200 tax returns on behalf of his clients. At the sentencing hearing, the government provided evidence that established Rodriguez’s submission of fraudulent tax returns resulted in a loss amount to the IRS of $14,500,000.
U.S. District Judge K. Michael Moore also sentenced Rodriguez to one year of supervised release and ordered him to pay $14,569,171 in restitution.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the IRS-CI and FBI in this matter. Assistant U.S. Attorney Daniel J. Marcet prosecuted this case.
Information about how the public can protect themselves from tax fraud and report criminal practices may be found at https://www.irs.gov/compliance/criminal-investigation/tax-fraud-alerts. 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.
Fifteen Defendants Convicted as Part of “Operation Ozark Express” Sentenced to over 1,000 Months in Prison Combined for Methamphetamine Trafficking in Northwest ArkansasRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas; announced that on April 2, 2019, the final of fifteen (15) individuals were sentenced by the United States District Court for their roles in a methamphetamine trafficking ring which operated in Benton and Washington Counties in Arkansas and in additional jurisdictions such as California, Oklahoma, Illinois, Arizona and Mexico. This investigation and prosecution operation lasted from approximately mid-2017 through today’s final sentencing hearing. The Honorable Judge Timothy L. Brooks presided over the sentencing hearings in the United States District Court in Fayetteville.
According to court records, on July 24, 2018, a federal grand jury returned two Indictments containing a total of sixteen (16) counts against fifteen (15) individuals in the Northwest Arkansas area and beyond for activities in a large-scale drug trafficking conspiracy. This drug trafficking ring was responsible for the importation of multiple kilograms of methamphetamine into the Northwest Arkansas area from California and Mexico for local distribution. Once sold, bulk amounts of United States currency loaded in vehicles were driven back to Mexico as payment for the methamphetamine via the Laredo, Texas port of entry. The individuals were arrested in operations conducted by the DEA in conjunction with the Fayetteville and Springdale, Arkansas police departments on May 18, 2018.
Defendants in this conspiracy received the following sentences:
Pedro Zambrano, age 23, of Phoenix, Arizona was sentenced April 2, 2019 to 240 months in federal prison followed by five years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Zambrano was indicted in the Western District of Arkansas in June 2018 and plead guilty on September 7, 2018.
Alexis Rios-Tamayo age 21, of Phoenix, Arizona was sentenced January 22, 2019 to 41 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Rios-Tamayo was indicted in the Western District of Arkansas in June 2018 and plead guilty on August 10, 2018.
Eduwijes Cervantes-Mendoza, age 58, a citizen of Mexico residing in Springdale, Arkansas was sentenced January 22, 2019 to 210 months in federal prison followed by three years of supervised release on one count of Distribution of Methamphetamine. Cervantes-Mendoza was indicted in the Western District of Arkansas in June 2018 and plead guilty on September 7, 2018.
Santana Gonzales-Aguirre, age 45, a citizen of Mexico residing in Bentonville, Arkansas was sentenced February 6, 2019 to 15 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute of Methamphetamine. Gonzales-Aguirre was indicted in the Western District of Arkansas in June 2018 and plead guilty on September 7, 2018.
Gregory Miranda, age 23, of Ventura, California was sentenced February 6, 2019 to 15 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute a Controlled Substance. Miranda was indicted in the Western District of Arkansas in June 2018 and plead guilty on September 21, 2018.
Michael Shannon Howard, age 52, of Green Forest, Arkansas was sentenced February 6, 2019 to 33 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute a Controlled Substance. Howard was indicted in the Western District of Arkansas in June 2018 and plead guilty on July 16, 2018.
John Paul Farias, age 39, of Springdale, Arkansas was sentenced February 6, 2019 to 121 months in federal prison followed by five years of supervised release on one count of Conspiracy to Distribute a Controlled Substance. Farias was indicted in the Western District of Arkansas in June 2018 and plead guilty on September 28, 2018.
Miguel Saldana, age 24, of Boone County, Arkansas was sentenced April 1, 2019 to 120 months in federal prison followed by five years of supervised release on one count of Conspiracy to Distribute a Controlled Substance. Saldana was indicted in the Western District of Arkansas in June 2018 and plead guilty on September 28, 2018.
Sarahi Flores-Quintero, age 22, of Phoenix, Arizona was sentenced February 5, 2019 to 40 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute a Controlled Substance. Flores-Quintero was indicted in the Western District of Arkansas in June 2018 and plead guilty on September 28, 2018.
Victor Sanchez-Hernandez, age 47, a citizen of Mexico residing in Hindsville, Arkansas was sentenced February 5, 2019 to 240 months in federal prison followed by five years of supervised release on one count of Distribution of a Methamphetamine. Sanchez-Hernandez was indicted in the Western District of Arkansas in June 2018 and plead guilty on July 9, 2018.
Jose Octavio Sanchez, age 21, of Hindsville, Arkansas was sentenced February 5, 2019 to 12 months in federal prison followed by three years of supervised release on one count of being an unlawful drug user in possession of a firearm. Sanchez was indicted in the Western District of Arkansas in June 2018 and plead guilty on September 28, 2018.
Elizabeth Ramirez, age 30, of Springdale, Arkansas was sentenced February 5, 2019 to 44 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Ramirez was indicted in the Western District of Arkansas in June 2018 and plead guilty on June 25, 2018.
Jesus “Don Chuey” Ramirez-Santoyo, age 63, of Tulsa, Oklahoma was sentenced February 5, 2019 to 48 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Ramirez-Santoyo was indicted in the Western District of Arkansas in June 2018 and plead guilty on September 7, 2018.
This prosecution was part of the Western District of Arkansas’ Operation Ozark Express, which is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illicit drug supply.
This OCDETF case was investigated by the Drug Enforcement Administration in Fayetteville, Arkansas and Chicago, Illinois; the Springdale Police Department; the Fayetteville Police Department; the Arkansas State Police; the Arkansas National Guard Counter-Drug Unit; and the Department of Homeland Security in Phoenix, Arizona. Assistant United States Attorney Brandon Carter prosecuted the case for the Western District of Arkansas.
El Salvador National Arrested for Illegally Reentering the United States Following DeportationRead the Press Release
A criminal complaint was filed today in federal court in Central Islip charging William Umberto Martinez Chavez with illegal reentry into the United States. The defendant was arrested this morning in Huntington, New York, and made his initial appearance this afternoon before United States Magistrate Judge A. Kathleen Tomlinson, where he was ordered detained.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Thomas R. Decker, Field Office Director, U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO), announced the arrest.
“As alleged, Martinez Chavez illegally returned to the United States after he served a lengthy New York State prison sentence for a homicide he committed on Long Island, and was deported to El Salvador,” stated United States Attorney Donoghue. “This Office is firmly committed to prosecuting criminals who illegally reenter the United States, especially MS-13 gang members who break into the country after deportations resulting from violent crime convictions.” Mr. Donoghue expressed his appreciation to the Joint Criminal Alien Removal Taskforce and the United States Marshals NY/NJ Regional Fugitive Task Force, Long Island Division, for their assistance with the case.
“Martinez Chavez is a known MS-13 gang member who was convicted of manslaughter, served his time and was removed from the United States, only to resurface on the same streets after having entered illegally,” stated ERO New York Field Office Director Decker. “It is the job of the brave men and women of ICE to take those who break the laws of this country off the streets and see that they are removed back to their home countries.”
According to the complaint, Martinez Chavez, a Salvadoran national, was deported from the United States in October 2017, after having been convicted and served a sentence for manslaughter in connection with a May 2000 stabbing outside a deli in Huntington. Martinez Chavez stabbed the victim, severing his aorta and causing his death. The defendant has admitted to previously being a member of the MS-13 gang and still bears MS-13 tattoos, on his abdomen and on his chest.
If convicted, Martinez Chavez faces a maximum term of imprisonment of 20 years.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Jonathan Siegel is in charge of the prosecution.
The Defendant:
WILLIAM UMBERTO MARTINEZ CHAVEZ (also known as “William Martinez,” “William Martines,” “Wiliam Martinez Chavez” and “Julio Cordero”)
Age: 40
Huntington, New YorkE.D.N.Y. Docket No. 19-MJ-297 (AKT)
Easthampton Attorney Arrested and Charged with Financial Fraud and False Statements to Federal AgentsRead the Press Release
BOSTON – An Easthampton attorney was arrested on March 31, 2019, and appeared in federal court in Springfield yesterday to face charges for various financial fraud offenses and lying to federal agents.
Phillip R. Williams, 49, was indicted on three counts of wire fraud, two counts of engaging in financial transactions greater than $10,000 of proceeds derived from criminal activity, two counts of money laundering, two counts of tax fraud, and one count of false statements to a federal official. Williams appeared in federal court in Springfield yesterday and was detained pending a hearing scheduled for April 4, 2019.
According to the indictment, Williams was an attorney licensed to practice law in Massachusetts. Williams maintained an Interest on Lawyers’ Trust Account at a bank in Massachusetts and was required to hold funds with the care required of a professional fiduciary, for the exclusive benefit of his clients. Between approximately Jan. 29, 2014, and Dec. 31, 2014, Williams allegedly devised a scheme to defraud two individuals who transferred $950,000 into the Williams Lawyers’ Trust Account. As part of that scheme, Williams stole $453,695 of these funds for his own benefit, his family members, and two associates.
It is further alleged that when Williams electronically filed his self-prepared 2014 Individual Tax Return Form 1040 with the IRS, he failed to report the full amount of the $453,695 that he misappropriated from the Williams Lawyer’s Trust Account. In September 2015, Williams filed an amended 2014 Individual Tax Return, Form 1040x, with the IRS and increased his adjusted gross income from $44,439 to $282,000.
In addition, in July 2015, Williams allegedly told agents that he reported an estimated $300,000 of the stolen funds on his 2014 income tax return.
The wire fraud and money laundering charges provide for a sentence of no greater than 20 years in prison, up to five years of supervised release, and a fine of $250,000. The $10,000 financial transaction charges provide for a sentence of no greater than10 years in prison, up to three years of supervised release, and a fine of $250,000. The tax fraud charges provide for up to three years in prison, a maximum of three years of supervised release, and a fine of $100,000. The false statement charge provides for a sentence of no greater than five years in prison, up to three years of supervised release, and a fine of $250,000. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office 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.
Eagle Butte Man Sentenced for Vicious Knife AttackRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on April 1, 2019, by U.S. District Judge Roberto A. Lange.
James Charger, age 21, was sentenced to 54 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Charger was indicted by a federal grand jury on August 13, 2018. He pled guilty on December 2, 2018.
The conviction stemmed from an incident on February 6, 2018, when Charger stabbed another person with a knife in the chest and upper body at least nine times. The victim was flown by emergency air transport to Rapid City Regional Hospital, where he was treated for his injuries and survived.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Charger was immediately turned over to the custody of the U.S. Marshals Service.
Defendant sentenced in phone scam targeting U.S. victimsRead the Press Release
ATLANTA – Mehboob Mansurali Charania has been sentenced for his involvement in a transnational criminal organization that victimized over 340 people in the United States through a fraudulent India-based call-center scheme, resulting in over $200,000 in losses.
“The phone scheme Charania was a part of used lies, intimidation, and fear to extort or outright steal from unsuspecting citizens,” said U.S. Attorney Byung J. “BJay” Pak. “Our law enforcement partners regularly uncover thieves who believe they found a new way to steal. As Charania learned in this case though, law enforcement was well aware of these schemes.”
“Victimizing taxpayers by impersonating IRS employees is a serious crime,” said J. Russell George, Treasury Inspector General for Tax Administration. “Since October 2013, more than 15,000 victims have suffered over $75 million in losses to the perpetrators of telephone scammers who impersonate IRS employees. TIGTA is committed to ensuring that those involved in the impersonation of IRS employees are prosecuted to the fullest extent of the law. Our investigations have identified 140 scammers who, like Mr. Charania, have or are, facing federal criminal proceedings.”
According to U.S. Attorney Pak, the charges, and other information presented in court: The defendant took part in a sophisticated scheme organized in India, that included a network of call centers. Call center operators called U.S. residents over the telephone and misled the potential victims into sending money utilizing a number of different confidence scams.
The scams included impersonation scams where the callers pretended to be Internal Revenue Service (“IRS”) employees demanding payment of taxes and fees. Other scams included grant scams where callers directed victims to pay upfront fees for fictitious grants, student loan scams where callers threatened victims if they did not pay fictitious taxes and fees associated with student loans, and hacking scams where callers would gain remote access to the victim’s computer, lock the victim out of the computer, and deny access to the computer until the victim provided payment.
If the victims agreed to pay, the call centers would have the victims send the funds to the attention of fictitious names used by Charania through wire transfers, including through MoneyGram and Western Union. Charania also would conduct hawala money transfers by transferring proceeds to bank accounts as directed by an individual in India.
Charania, a citizen of India who moved to Tucker, Georgia in 2014, has been sentenced to one year, four months in prison to be followed by three years supervised release, and ordered to pay a $100 special assessment, and pay restitution of $203,958.02 to victims of the scheme. Charania was convicted on January 17, 2019, after he pleaded guilty to engaging in an unlicensed money transfer business.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration.
Assistant U.S Attorney Jolee Porter prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Daughter, Father Charged with Filing Lottery Ticket Tax Refund Claims Seeking $175 Million Resulting in Payment of Approximately $3.4 MillionRead the Press Release
Broward County father and daughter were arrested today for charges related to filing fraudulent lottery ticket tax refund claims that collectively sought in excess of $175,000,000.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Fred Stolper, Special Agent in Charge, Diplomatic Security Service (DSS), Miami Field Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and James S. Jackson, Deputy Inspector General for Investigations, Treasury Inspector General for Tax Administration (TIGTA), made the announcement.
A criminal complaint unsealed today charged Danielle Takeila Edmonson (“D. Edmonson”), 35, of Boynton Beach, and Kenneth Roger Edmonson (“K. Edmonson”), 50, of Oakland Park, with filing false claims, mail fraud, and false statements. K. Edmonson will appear before U.S. Magistrate Judge Patrick M. Hunt, on Friday, April 5, for his pretrial detention hearing. D. Edmonson will make her initial appearance tomorrow, April 3, before Judge Hunt.
According to the affidavit filed in support of the criminal complaint, from 2015 through 2018 (the “relevant period”), D. Edmonson and K. Edmonson filed lottery ticket tax refund claims with the IRS totaling approximately $175 million, including individual refund claims ranging from hundreds of thousands of dollars to as high as eighty million dollars. Despite the false nature of the claims, the Department of Treasury paid out approximately $3.4 million in refunds through the issuance of U.S. Treasury checks.
According to the affidavit, D. Edmonson filed a fraudulent tax return seeking a large refund for tax year 2014 falsely indicating on handwritten forms that she had paid taxes of over $300,000. The IRS did not receive any corresponding records indicating that D. Edmonson had actually paid these taxes. Despite the false nature of the tax return, the Department of Treasury issued a tax refund check for $239,700 in 2015. D. Edmonson deposited this tax refund check into her bank account and used the funds to purchase a BMW and make large cash withdrawals.
According to the affidavit, D. Edmonson filed fraudulent tax returns for each of tax years 2015, 2016, and 2017, seeking refunds of approximately $80 million, $2.4 million, and $9 million, respectively. These tax returns contained forms falsely claiming that D. Edmonson had paid over $145 million in taxes during this period. The IRS did not receive any corresponding forms to support the payment of any of these taxes. Despite the false nature of the tax returns, on September 4, 2017, the Department of Treasury issued a tax refund check to D. Edmonson in the amount of $2,405,703. D. Edmonson subsequently deposited this tax refund check into her bank account.
According to the affidavit, K. Edmonson filed a fraudulent tax return in September 2017 seeking a refund of approximately $725,111. The return contained false and fraudulent claims that K. Edmonson had paid a substantial amount of withholding taxes. The IRS did not receive corresponding forms to support the claimed payments. Despite the false nature of the tax return, on January 28, 2018, the Department of Treasury mailed a tax refund check to K. Edmonson for $734,266.27 (including $9,036.27 in interest). Shortly thereafter, K. Edmonson deposited this tax refund check into his bank account.
According to the affidavit, in January 2018, IRS agents conducted a search of the defendants’ residence. During the search, in D. Edmonson’s bedroom, law enforcement found a letter from the Department of Treasury, dated June 2017, advising her that her tax refund claims are “worthless . . . [and] akin to a fraud” and handwritten “wish list” by D. Edmonson asking for a “refund check in the amount of $80,112.167.” In addition, during the search, IRS agents advised K. Edmonson of the fraudulent nature of his tax return. Shortly after law enforcement left, K. Edmonson went to his bank to attempt to withdraw the funds from the account that received the fraudulent refund check.
If convicted, each defendant faces a maximum sentence of 20 years in prison for each count of mail fraud and five years in prison for each count of filing false claims and false statements.
Ms. Fajardo Orshan thanked IRS-CI, DSS, FBI, and TIGTA for their work on the case. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
A criminal complaint is merely an allegation and every defendant is presumed innocent until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Dallas-Area Home Health Care Employee Sentenced to Five Years in Prison for His Role in a $3.7 Million Health Care Fraud SchemeRead the Press Release
A Collin County, Texas man was sentenced to 60 months in prison today following his trial conviction for conspiracy to commit health care fraud.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region, Acting Special Agent in Charge Michael Schneider of the FBI’s Dallas Field Office and Director of Law Enforcement David Maxwell of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Paul Emordi, 52, was sentenced by U.S. District Judge Jane Boyle of the Northern District of Texas, who also sentenced Emordi to two years of supervised release and ordered Emordi to pay restitution in the amount of $3,559,154.22. After a six-day trial, Emordi; Celestine “Tony” Okwilagwe, 50, of Dallas County, Texas; Adetutu Etti, 60, also of Dallas County; and Loveth Isidaehomen, 49, also of Dallas County, were each convicted of one count of conspiracy to commit health care fraud. In addition, Okwilagwe and Etti were each convicted of two counts of false statement in connection with a health care benefit program. Sentencing has been scheduled for Etti on March 28 and for Okwilagwe and Isidaehomen on April 18.
According to evidence presented at trial, Okwilagwe and Emordi owned and operated Elder Care, a Medicare and Medicaid provider in Garland, Texas, when both were previously excluded from participating in any federal health care benefit program. Etti, the administrator of Elder Care, concealed Okwilagwe’s ownership and Okwilagwe and Emordi’s exclusions from Medicare and Medicaid. Etti signed false documents that indicated that no one associated with Elder Care was excluded and that another individual owned Elder Care, the evidence showed. The evidence further established that Isidaehomen, who is Okwilagwe’s wife, signed bank documents and wrote employee paychecks to conceal both Okwilagwe’s and Emordi’s involvement with Elder Care. The defendants also engaged in a scheme to submit false and fraudulent bills to Medicare for services that were not needed, the evidence showed.
This case was investigated by HHS-OIG, the FBI and MFCU. Assistant Deputy Chief Adrienne Frazior and Trial Attorney Catherine Wagner of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Russell Fusco of the Northern District of Texas are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. 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. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Convicted Felon Guilty of Illegally Possessing a FirearmRead the Press Release
Memphis, TN – Following a two-day jury trial in federal court, a Memphis man has been found guilty of being a convicted felon in possession of a firearm. U.S. Attorney D. Michael Dunavant announced the guilty verdict today.
According to evidence presented at trial, on July 2, 2017, Memphis Police Department officers responded to a man down call at the "Z" Market located at Perkins and Cottonwood. Marcus McCraven, 36, was driving his Ford F-150 pickup truck when he crashed into a pole and a fence in the parking lot. McCraven appeared to be passed out behind the wheel. In plain view, on the passenger side floorboard, officers located a loaded Taurus .45/410 caliber revolver. He was also in possession of cocaine, heroin and fentanyl found inside his vehicle.
On March 20, 2009, McCraven pled guilty to conspiracy to possess with the intent to distribute cocaine and was sentenced to 27 months. After serving that sentence, he violated the terms of supervised release and received an additional 6 months incarceration.
Sentencing is set on June 27, 2019, before United States District Court Judge John T. Fowlkes Jr. McCraven faces up to 10 years imprisonment followed by three years supervised release.
U.S. Attorney D. Michael Dunavant said, "Convicted felons who possess firearms are an inherent danger to community, and this defendant continued to possess a firearm and illegal narcotics despite his prior felony conviction history. There is and ought to be a significant consequence for such recidivist criminal behavior, and this is one more gun toter that will be removed from our streets. Gun Crime is Max Time."
This case is part of the Project Safe Neighborhoods Initiative (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. In 2017, PSN was reinvigorated as 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 Memphis Police Department, Project Safe Neighborhoods Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
Assistant U.S. Attorneys Raney Irwin and Kevin Whitmore prosecuted this case on behalf of the government.
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Cleveland man indicted for allegedly committing five armed robberies in December 2018Read the Press Release
A Cleveland man was indicted for allegedly committing five armed robberies in December 2018.
Dwyon Moore, 50, was indicted on five counts of Hobbs Act robbery and five counts using a firearm in relation to a crime of violence.
Moore is accused of using a firearm to rob the following businesses in Cleveland: Wonton Gourmet on Payne Avenue on December 12; of D.O. Summers Cleaners and Laundry on Carnegie Avenue on December 14; Dark and Lovely Hair and Beauty on Cedar Avenue on December 14; Bo Loong on St. Clair Avenue on December 14, and Good Times Café on East 55th Street on December 14, according to the indictment.
This case is part of Project Safe Neighborhoods, 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 was reinvigorated in 2017 as 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.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case was investigated by the Cleveland Division of Police, Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, and the Cuyahoga County Prosecutor’s Office’s Crime Strategies Unit. It is being prosecuted by Assistant U.S. Attorney John C. Hanley.
An indictment is only an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Charleston Man Pleads Guilty to Federal Gun ChargeRead the Press Release
HUNTINGTON, W.Va. – Marcus Smith, 46, from Charleston, West Virginia, pled guilty today to being a felon in possession of a firearm, announced United States Attorney Mike Stuart. The case was investigated by the Hurricane Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
On August 29, 2017, a Hurricane Police Officer conducted a traffic stop in Hurricane. Smith was a passenger in the vehicle. Officers located a loaded firearm under his seat. Smith was prohibited from possessing the firearm under federal law because of a multiple prior felony convictions.
Smith faces up to 10 years in prison when he is sentenced on July 15, 2019.
The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie Taylor handled the prosecution of the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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California Man Pleads Guilty to Federal Gun CrimesRead the Press Release
BLUEFIELD, W.Va. – A California man pled guilty today to a federal gun charges, announced United States Attorney Mike Stuart. Tiero D. Wash, 23, entered his guilty pleas to being a felon in possession of firearms on two separate dates. Stuart commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Mercer County Home Confinement Office, and the Bluefield City Police Department.
It was established at the plea hearing that Wash illegally possessed firearms on two separate dates while on home confinement in Mercer County on unrelated state charges. On December 5, 2017, Mercer County Home Confinement Officers and Bluefield City Police Officers searched Wash’s residence as a condition of his home confinement. During the search, officers located three different firearms. On January 1, 2018, officers again searched Wash’s residence as a condition of his home confinement. During the second search, officers located another firearm. Wash was prohibited from possessing any firearm under federal law because he was previously convicted of the felony offense of Transporting Marijuana in the Superior Court of California, County of Sacramento in 2017.
Wash faces up to 10 years in federal prison when he is sentenced on August 7, 2019.
Assistant United States Attorney Timothy D. Boggess is responsible for the prosecution. The plea hearing was held before Senior United States District Judge David A. Faber.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Bronx Man Sentenced in Manhattan Federal Court to 20 Years in Prison for Attempting to Provide and Conspiring to Provide Material Support to ISISRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and John C. Demers, the Assistant Attorney General for National Security, announced that ADAM RAISHANI, a/k/a “Saddam Mohamed Raishani,” was sentenced to 20 years in prison for attempting to provide and conspiring to provide material support to the Islamic State of Iraq and al-Sham (“ISIS”). RAISHANI pled guilty to a Superseding Information on November 14, 2018, before U.S. District Judge Ronnie Abrams, who also imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Adam Raishani may be a U.S. citizen, but he pledged his allegiance to the Islamic State of Iraq and al-Sham, the terrorist organization that seeks to destroy the ideals inherent to America. In his efforts to show support to the organization, he helped another man make a trip to the Middle East so that he could join and train. Then, a year later, Raishani decided to follow him, leaving Raishani’s wife and child behind in the United States. Thankfully law enforcement was there to arrest him before he could make his dream of jihad a reality. Now, Raishani will spend the next 20 years of his life behind bars for his treachery.”
Assistant Attorney General John C. Demers said: “Raishani tried to leave his young family to travel overseas to join ISIS. Fortunately, he was arrested before he could leave the country. Raishani is the latest in the long line of would-be terrorists whom we have arrested and prosecuted before they could accomplish their mission to provide material support to ISIS overseas. I commend the agents, analysts, and prosecutors who are responsible for this result.”
According to the Superseding Information, other court filings, and statements made during court proceedings:
Beginning in the fall of 2015, RAISHANI conspired with another ISIS supporter (“CC-1”) to provide material support and resources to ISIS. RAISHANI and CC-1 agreed to travel overseas to join and wage jihad for ISIS, with CC-1 to depart first. On October 30, 2015, CC-1 departed from JFK Airport for Istanbul, Turkey, where he planned to cross into Syria to join and fight for ISIS. RAISHANI helped coordinate CC-1’s transportation from the Bronx, New York, to John F. Kennedy International Airport (“JFK Airport”), and RAISHANI accompanied CC-1 from the Bronx to JFK Airport.
RAISHANI continued communicating with CC-1 following CC-1’s departure, using an encrypted email application in an effort to avoid law enforcement detection. For example, on January 2, 2016, RAISHANI sent an email to CC-1 stating: “Glad tidings brother. Its [sic] been some time since your voyage. I pray to Allah The ALL MIGHTY to grant you success. Until next time.”[1] On April 1, 2016, RAISHANI sent another email to CC-1 stating: “I hope Allah has bestowed you what you were seeking. . . . May Allah grant you sincere and clean intentions and make you among the righteous in Janatal Firdaus [a reference to Islamic paradise]. . . . Please return this email and respond to what we agreed upon before your departure. Until next time.” On May 3, 2016, CC-1 responded to RAISHANI, indicating that he had succeeded in joining the Islamic State. CC-1 informed RAISHANI that CC-1 was “fine and well,” that CC-1 “wished you [RAISHANI] were here with me,” and that “here we are living with izza [honor].”
Also in May 2016, CC-1 posted content on a particular social media application (“Application-1”) indicating that CC-1 was living in the Islamic State and fighting on its behalf. For example, CC-1 sent messages to another user of Application-1 stating: “I’m living in the Islamic state safely and secure by the permission of Allah,” “[h]ere we are fighting the kuffars [non-believers],” and “I left the land of kuffars now I’m living in the khilafah [the caliphate].” CC-1 also posted a photograph on Application-1 that shows CC-1 carrying an assault rifle and the flag of ISIS.
Between January and June of 2017, RAISHANI had a series of meetings with individuals who were, unbeknownst to RAISHANI, a confidential source working at the direction of law enforcement and an undercover law enforcement officer. In the course of those meetings, RAISHANI admitted that he had previously helped another person (CC-1) travel overseas to join ISIS, and stated that he intended to travel overseas to join ISIS himself. During those meetings, RAISHANI also downloaded and viewed violent ISIS propaganda videos, and expressed his desire to wage jihad on behalf of ISIS and his belief that the Quran can be read to justify the violence, including beheadings, perpetrated by ISIS.
By April 2017, RAISHANI was actively planning to travel abroad to join ISIS. RAISHANI indicated that he aspired to join ISIS in Syria and that he aimed to travel before the end of Ramadan, an Islamic holy month that ran from approximately May 26 through June 24 of 2017. In June 2017, RAISHANI made preparations to leave, including by paying off debts and purchasing clothing that he intended to wear for training with ISIS overseas. RAISHANI indicated his intention to meet an ISIS member in Turkey, who would facilitate RAISHANI’s joining the terrorist organization in Syria. In the course of communications with an undercover law enforcement officer, RAISHANI conveyed that he was prepared to die, to martyr himself, for ISIS. On June 21, 2017, RAISHANI attempted to board a flight bound for Turkey (via Portugal) at JFK Airport, at which point law enforcement officers arrested him.
Following RAISHANI’s arrest, the FBI searched RAISHANI’s Bronx residence pursuant to a search warrant. Among the evidence recovered was a letter from RAISHANI addressed to members of his family, which the FBI found in a safe in RAISHANI’s bedroom. In the letter, RAISHANI – who left behind his wife and young son when he attempted to travel to Syria to join ISIS – advised his wife that she could still choose to “[j]oin” him in the Islamic State, and he expressed regret that she did not share his radical views and that he had been unable to convince her to accompany him to join ISIS. RAISHANI also wrote: “Do Not Divulge this document and other documents that I have giv[en] to you to the authorities. Do not believe their plots. Do not divulge my absences but instead say I went to do volunteering outside the country with my medical skills and health background.”
* * *
In addition to the prison term, RAISHANI, 32, of the Bronx, New York, was sentenced to 20 years of supervised release.
Mr. Berman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the NYPD’s Intelligence Division. Mr. Berman also thanked the Counterterrorism Section of the Department of Justice’s National Security Division, as well as the New York Office of U.S. Customs and Border Protection.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Sidhardha Kamaraju, Jane Kim, and George D. Turner are in charge of the prosecution, with assistance from Trial Attorney Kevin Nunnally of the Counterterrorism Section.
[1] Communications and conversations discussed herein are described in substance and in part.
Boston Man Indicted for Being a Felon in Possession of a FirearmRead the Press Release
BOSTON – A Boston man was indicted today in federal court in Boston for being a felon in possession of a firearm.
Khyeme Johnson, 31, was charged with one count of being a felon in possession of a firearm and ammunition.
On Aug. 24, 2018, Johnson was allegedly found in possession of an Arcadia Machine & Tool .380 semiautomatic pistol with two rounds of ammunition. Johnson is prohibited from possessing a firearm due to multiple prior felony convictions.
Based upon his criminal history, Johnson faces a maximum sentence of life in prison, up to five 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 and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Valuable assistance was provided by the Suffolk County District Attorney’s Office and the Boston Police Department. Assistant U.S. Attorney Chris Looney of Lelling’s Criminal Division 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.
Assistant U.S. Attorneys honoredRead the Press Release
Pictured left to right are: Adam Cohen, Director of OCEDFT; Assistant U.S. Attorney Lara K. Omps-Botteicher, award recipient; Assistant U.S. Attorney Shawn M. Adkins, award recipient; U.S. Attorney Bill Powell, the Northern District of West VirginiaMARTINSBURG, WEST VIRGINIA –United States Attorney Bill Powell is proud to announce that three Assistant United States Attorneys in the Northern District of West Virginia are being recognized today in Baltimore for their work to combat the opioid epidemic.
Assistant U.S. Attorneys Shawn M. Adkins and Lara K. Omps-Botteicher, along with former NDWV Assistant U.S. Attorney Anna Z. Krasinski, now with the U.S. Attorney’s Office in New Hampshire, will be recognized at the Organized Crime Drug Enforcement Task Force Awards for their exemplary work on cases involving opioid reduction in the Northern District of West Virginia.
“Our honored Assistant United States Attorneys and law enforcement agents are extraordinarily hard working and professional. They come to work every day with one mission: to protect the people of this district. They do so with great enthusiasm, a just mind and without any concern for recognition. But, when recognition comes we should embrace it for it reminds us how fortunate we are to have them helping to protect each of us. I am proud to be associated with them, and congratulate them all on this well-deserved recognition,” said Powell.
Along with Adkins, Omps-Botteicher, and Krasinski, several other Northern District of West Virginia law enforcement professionals will be recognized at the ceremony.
The Organized Crime Drug Enforcement Task Forces (OCDETF) Program was established in 1982 to coordinate a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money-laundering networks, and related criminal enterprises.
OCDETF combines the resources and expertise of federal law enforcement agencies in a coordinated attack against major drug trafficking and transnational criminal organizations. The OCDETF program includes the 94 U.S. Attorneys’ Offices (USAOs), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Internal Revenue Service (IRS), the U.S. Coast Guard (USCG), the U.S. Immigration and Customs Enforcement (USCIS), the U.S. Marshals Service (USMS), the Criminal and Tax Divisions of the U.S. Department of Justice, and numerous State and local agencies.
Arraignments Held for 14 Defendants on Drug Trafficking, Money Laundering ChargesRead the Press Release
KANSAS CITY, KAN. – Arraignments were held Monday in federal court in Kansas City, Kan., for some of 14 defendants charged with marijuana trafficking and money laundering, U.S. Attorney Stephen McAllister said.
A federal indictment alleges the defendants smuggled hundreds of pounds of marijuana from California and Colorado to be distributed in Kansas and laundered hundreds of thousands of dollars in drug proceeds.
Charges include drug trafficking conspiracy, money laundering, conspiracy, unlawful use of the U.S. Postal Service and maintaining a residence for the purpose of drug trafficking.
The following defendants are charged in a 25-count indictment:
Steven Martinez, 30, Rosamond, Calif.
Nickolas Vander Bruggen, 28, Hesperia, Calif.
George Garcia, 31, Rosamond, Calif.
Alonzo Cooper, 28, Kansas City, Kan.
Reginald Allen, 26, Kansas City, Kan.
Kayla Union, 22, Kansas City, Mo.
Akil Cooper, 26, Lancaster, Calif.
Marcus Joseph, 31, Lancaster, Calif.
Dominique Wilson, 24, Kansas City, Kan.
Mario Zelaya, 27, Los Angeles, Calif.
Trenton Smith, 29, Aurora, Colo.
Anthony Daniels, 58, Sacramento, Calif.
Daya Daniels, 46, Sacramento, Calif.
Barbara Haynes, 39, Littleton, Colo.
Upon conviction, the charges carry the following penalties:
Conspiracy: Not less than five years and not more than 40 years in federal prison and a fine up to $5 million.
Conspiracy to distribute marijuana: Up to five years and a fine up to $250,000.
Unlawful use of the Postal Service: Up to four years and a fine up to $250,000.
Maintaining drug-involved premises: Up to 20 years and a fine up to $500,000.
Money laundering: Up to 20 years and a fine up to $500,000.
The Kansas City, Missouri, Police Department, Internal Revenue Service Criminal Investigation Unit, U.S. Postal Inspection Service, Homeland Security Investigations, Federal Bureau of Investigation, U.S. Marshals Service, Dubuque (Iowa) Drug Task Force, Kern County (California) Sheriff’s Office and the La Habra (California) Police Department investigated. Assistant U.S. Attorney Trent Krug is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Arlington Gym Owner Sentenced to Prison for Drug CrimesRead the Press Release
ALEXANDRIA, Va. – An Arlington man was sentenced today to nearly four years in prison for his role in purchasing 2 kilograms of cocaine from undercover detectives.
According to court documents, Pascal Laporte, 40, intended to purchase 2 kilograms of cocaine from undercover Fairfax County Police detectives who purported themselves as members a drug cartel based in Mexico. For over a year, Laporte expressed to a confidential source his need for a cheaper supplier of cocaine who could provide him with kilogram quantities. Laporte first met the undercover detectives in early August 2018 at a restaurant in Tysons Corner, to discuss pricing per kilogram and the quantity Laporte desired. Laporte told the undercover detectives it would take him a week to sell off 1 kilogram of cocaine.
In the weeks leading up to his arrest, Laporte communicated with the CS his desire to start with the purchase of 2 kilograms of cocaine, and if the arrangement went well, he would then purchase 10 kilograms, and then upwards of 100 kilograms per month. Laporte even traveled to Miami with the intention to find a means to transport the cocaine himself to the Northern Virginia area in an effort to obtain the cheapest price per kilogram. Laporte was arrested in August 2018 as he was inspecting the cocaine that he was to purchase. He brought $45,000 to the meeting, as partial payment for the 2 kilograms.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Special Assistant U.S. Attorney Lena Munasifi prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-368.
Apollo Woman Pleads Guilty to Defrauding Social SecurityRead the Press Release
PITTSBURGH, PA- A resident of Armstrong County, pleaded guilty in federal court to a charge of theft of government money, United States Attorney Scott W. Brady announced today.
Tara Jo Frain, 33, of Apollo, PA, pleaded guilty yesterday before United States District Judge Donetta W. Ambrose to Count One of the four-count Indictment, which also charges her husband, Danny Ray Alexander at Counts Two and Four of the same crimes.
In connection with the guilty plea, the Court was advised that between November 29, 2013 and December 30, 2016, Frain knowingly received Supplemental Security Income (SSI) benefits to which she knew she was not entitled in an amount of $25,164.00. In addition to the theft charge, Frain accepted responsibility for making false statements to the Social Security Administration (SSA) to obtain SSI benefits, which is charged and Count Three of the Indictment. Specifically, the Court was informed, that in May of 2012, Frain and Alexander were married but Frain did not inform the SSA of the change in her marital status and, in September of 2016, Frain falsely claimed on a SSA form that she was not married.
Judge Ambrose scheduled sentencing for August 5, 2019, at 10 a.m. The law provides for a total maximum sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Frain remains on bond pending sentencing.
Assistant United States Attorneys Rebecca L. Silinski and Adam N. Hallowell are prosecuting this case on behalf of the government.
The Social Security Administration – Office of Inspector General conducted the investigation that led to the prosecution of Frain.
Alaska Woman Sentenced to Federal Prison for Defrauding Anchorage Medical PracticeRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that an Alaska woman has been sentenced in federal court for devising multiple schemes to defraud an Anchorage medical practice of at least $640,000.
Jill Diane Applebury, aka: “Jill Wetzsteon,” 54, d/b/a Applebury Accounting Services, of Anchorage, was sentenced yesterday by Chief U.S. District Judge Timothy M. Burgess to serve four years in prison, followed by five years of supervised release. In November 2018, Jill Applebury pleaded guilty to four counts of bank fraud, one count of wire fraud, and one count of fraudulent transactions with an access device. The total amount of restitution to be paid to the victim will be determined within thirty days.
According to court documents, from the mid-1990’s until March 2013, Jill Applebury was an independent contractor who performed bookkeeping services for an Anchorage medical practice, which was owned and operated by an Anchorage physician. From at least 2001 until March 22, 2013, Jill Applebury defrauded the Anchorage medical practice in several ways.
One such scheme stems from 2001 through 2009, when Jill Applebury used the medical practice’s funds to pay her Federal Income Tax Withholding without authority. Specifically, Jill Applebury executed unauthorized and fraudulent transactions from the medical practice’s business bank account to the IRS, thereby having the medical practice pay her IRS individual income tax account. IRS Form 945 account transcripts for the medical practice showed that withheld taxes were paid to the IRS for the 2001-2009 calendar years, and applied to Jill Applebury’s individual income tax account. The total amount of unauthorized federal tax withholdings on independent contractor compensation paid by the medical practice for Jill Applebury’s benefit was $84,813.75.
Another scheme involved the medical practice’s profit-sharing plan. Employees of the medical practice were eligible to participate in its profit-sharing plan, which was overseen by a third-party administrator. Independent contractors did not qualify for the plan; however, Jill Applebury falsely represented to the third-party administrator that she had become a full-time employee of the medical practice in 2009, making her eligible to participate in the profit-sharing plan beginning in 2010. In all, Jill Applebury fraudulently caused the physician to unknowingly allocate $62,722.90 to her in unauthorized profit-sharing plan contributions for the years 2010 and 2011. As a result of the unauthorized overpayment caused by Jill Applebury to the profit-sharing plan, the Anchorage physician suffered an additional loss of $25,574.18, and was subject to an excise tax penalty in the amount of $1,931.80.
From July 2004 through December 2012, Jill Applebury devised a scheme to defraud the medical practice by fraudulently transferring funds from the medical practice’s business bank account to pay for charges on her and her family’s personal credit cards, including charges for travel and dining. The medical practice checking account was used to make payments totaling $18,229.97 on credit cards belonging to Jill Applebury, her husband and daughter.
Additionally, between 2004 and March 22, 2013, Jill Applebury used the medical practice’s business credit card to pay for items for their own personal and/or business benefit. The unauthorized charges included cell phone service for the Appleburys and members of their family, internet service for their residence, business licenses for businesses owned by Jill and Darin Applebury, automobile insurance for their personal vehicles, and other personal items. Jill Applebury also, without the consent of the Anchorage physician, put her nephew on the business cell phone plan, and used the business credit card to pay for fund raising gift cards obtained through GL Scripts to contribute to the same nephew’s youth soccer league. In all, Jill Applebury used the medical practice’s business credit card to pay for her and her husband’s personal and personal business expenses in the amount of $35,393.20.
The investigation also revealed that in October 2012, Jill Applebury fraudulently used the medical practice’s business credit card to purchase nearly $3,000 of medical products for her husband’s business, Rapid Recovery Medical Service, Inc. The fraudulent credit card purchases were made using the physician’s name and address without the knowledge and permission of the Anchorage physician.
Through her schemes, Jill Applebury was overpaid more than $550,000 for accounting and bookkeeping services, which also caused the medical practice to overpay the employer’s portion of payroll taxes in the amount of $23,469.69.
When imposing sentence upon Jill Applebury, Judge Burgess stated that the scope of the crimes committed against the Anchorage physician were breathtaking in that Jill Applebury treated the finances of the medical practice “like her own personal piggy bank.” Judge Burgess wanted to send a strong message to the financial community that such conduct would not be tolerated. Judge Burgess ordered Jill Applebury to no longer have any contact with the financial records of any business organization; he also found Jill Applebury to be a financial risk to third parties and ordered her to notify all future employers of her felony convictions.
The Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Retta-Rae Randall.
"Joe Exotic" Convicted of Murder-For-Hire and Violating Both the Lacey Act and Endangered Species ActRead the Press Release
OKLAHOMA CITY – A federal jury has found JOSEPH MALDONADO-PASSAGE, also known as Joseph Allen Maldonado, Joseph Allen Schreibvogel, and "Joe Exotic," 56, formerly of Wynnewood, Oklahoma, guilty on two counts of hiring someone to murder a woman in Florida, eight counts of violating the Lacey Act for falsifying wildlife records, and nine counts of violating the Endangered Species Act, announced First Assistant U.S. Attorney Robert J. Troester.
"The self-described Tiger King was not above the law," said Mr. Troester. "Rather, the jury only needed a few hours of deliberation before finding him guilty of engaging in a murder-for-hire plot to kill a rival and violating federal laws intended to protect wildlife when he killed multiple tigers, sold tiger cubs, and falsified wildlife records. We are thankful for the jury’s careful attention, deliberation, and verdict in this case."
"We would like to thank the U.S Attorney’s Office for prosecuting this case and holding individuals accountable for these crimes," said Phillip Land, Special Agent in Charge of the U.S. Fish and Wildlife Service, Office of Law Enforcement for the Southwest Region. "We appreciate our state and federal law enforcement partners working together in this investigation."
On September 5, 2018, a federal grand jury returned an indictment that accused Maldonado-Passage of hiring an unnamed person in November 2017 to murder "Jane Doe" in Florida and also hiring a person who turned out to be an undercover FBI agent to commit that murder. A superseding indictment handed down on November 7, 2018, further alleged Maldonado-Passage falsified forms involving the sale of wildlife in interstate commerce, killed five tigers in October 2017 to make room for cage space for other big cats, and sold and offered to sell tiger cubs in interstate commerce. Because tigers are an endangered species, these alleged killings and sales violated the Endangered Species Act.
During a trial that began on March 25, a jury heard evidence that Maldonado-Passage gave Allen Glover $3,000 to travel from Oklahoma to South Carolina and then to Florida to murder Carole Baskin, with a promise to pay thousands more after the deed. Baskin, a critic of Maldonado-Passage’s animal park, owns a tiger refuge in Florida and had secured a million-dollar judgment against Maldonado-Passage’s park.
The evidence further showed that beginning in July 2016, Maldonado-Passage repeatedly sought someone to murder Baskin in exchange for money, which led to his meeting with an undercover FBI agent on December 8, 2017. The jury heard a recording of his meeting with the agent to discuss details of the planned murder.
In addition to the murder-for-hire counts, the trial included evidence of violations of the Lacey Act, which makes it a crime to falsify records of wildlife transactions in interstate commerce. According to these counts, Maldonado-Passage designated on delivery forms and Certificates of Veterinary Inspection that tigers, lions, and a baby lemur were being donated to the recipient or transported for exhibition only, when he knew they were being sold in interstate commerce.
Finally, the jury heard evidence that Maldonado-Passage personally shot and killed five tigers in October 2017, without a veterinarian present and in violation of the Endangered Species Act.
After only a few hours of deliberation, the jury returned guilty verdicts on both murder-for-hire counts, eight Lacey Act counts, and nine Endangered Species Act counts.
At sentencing, Maldonado-Passage could be imprisoned on each murder-for-hire count up to ten years. He would also be subject to up to three years of supervised release and a fine of up to $250,000 per count. Each Lacey Act violation could carry a prison term of five years, a fine of $250,000, and three years of supervised release. Each Endangered Species Act count could result in one year in prison, a fine of $100,000, and one year of supervised release.
Maldonado-Passage will remain in the custody of the U.S. Marshals Service pending sentencing, which will take place in approximately ninety days.
This case is the result of an investigation by the U.S. Fish and Wildlife Service Office of Law Enforcement, the Federal Bureau of Investigation, and the Oklahoma Department of Wildlife Conservation, with assistance from the U.S. Marshals Service. Assistant U.S. Attorneys Amanda Green and Charles W. Brown are prosecuting the case.
Reference is made to court filings for further information.
1 April 2019
Wayne County Man Pleads Guilty to Illegally Possessing Ammunition While Being a Prohibited PersonRead the Press Release
HUNTINGTON, W.Va. – Steven Ferguson, 40, pled guilty today to being a prohibited person while possessing ammunition, announced United States Attorney Mike Stuart. The investigation was conducted by the Huntington Police Department.
On February 2, 2018, a Huntington Police Officer on patrol observed a black Dodge truck stuck in the mud in Rotary Park in Huntington. The officer observed two occupants in the vehicle. After observing and securing a large machete and a hunting knife, Ferguson told the officer he had a bag that contained ammunition. Ferguson was prohibited from possessing the ammunition under federal law because of a 2012 misdemeanor domestic battery 2nd offense conviction in Cabell County Magistrate Court.
Ferguson faces up to 10 years in prison when he is sentenced on July 15, 2019.
The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie Taylor handled the prosecution of the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Verona Man Pleads Guilty in Large Heroin Trafficking ConspiracyRead the Press Release
PITTSBURGH - A Verona, Pennslvania resident pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Angelo Massie, 41, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that from in and around November 2015, and continuing thereafter to in and around September 2016, Massie conspired with others to distribute and possess with intent to distribute more than one kilogram of heroin, a Schedule I controlled substance.
Judge Fischer scheduled sentencing for September 17, 2019 at 9:00 a.m. The law provides for a total sentence of not less than 15 years to a maximum of life in prison, a fine not to exceed $20,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Amy L. Johnston and Yvonne M. Saadi are prosecuting this case on behalf of the government.
The Allegheny County District Attorney Narcotics Enforcement Team – Narcotics, Firearms, & Violent Crime Task Force, as well as the Pennsylvania Office of the Attorney General – Bureau of Criminal Investigations, Organized Crime Section – Western Regional Office contributed significantly to the investigation, which resulted in the instant guilty plea.
This case grew out of a federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) investigation that resulted in several federal indictments in August of 2016. The OCDETF 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 Pittsburg Bureau of Police, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, and the Allegheny County Police Department. Substantial assistance was provided by FBI San Juan, Puerto Rico (St. Thomas Resident Agency, U.S. Virgin Islands) and the United States Postal Inspection Service. Numerous other FBI field offices, including Detroit, Cleveland, New York, and Atlanta, in addition to the Bureau of Alcohol, Tobacco, and Firearms, also assisted with this investigation. 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 indictments from August 2016 were the result of an investigation, which utilized Title III wiretap intercepts and other investigative techniques that established the existence of a several overlapping and interrelated drug distribution networks with tentacles in the Western District of Pennsylvania, Northern District of Ohio, Eastern District of Michigan and the District of the Virgin Islands. The FBI Greater Pittsburgh Safe Streets Task Force’s focus began in early 2015 on a drug trafficking organization operating on Pittsburgh’s North Side and thereafter they were able to track drug suppliers beyond the borders of own district and across the Caribbean Sea.
United States Attorney's Office Gets $50,000 of Elderly Scam Money ReturnedRead the Press Release
CHARLESTON, W.Va. -- United States Attorney Mike Stuart announced that his Office recently facilitated the return of $50,000 to an elderly scam victim in Florida. The scam was identified in conjunction with the United States Attorney’s Office Elder Justice Initiative. The victim had wired $50,000 to a bank account in the Southern District of West Virginia. Investigators with Stuart’s office reached out to the West Virginia citizen whose name was on the account and who was suspected of receiving fraudulent funds. The West Virginia citizen, also a victim of other online scams, was being used by scammers as a middle person and received the $50,000, which was to be forwarded to the scammers. The West Virginia individual agreed to allow the bank to return the funds to the Florida victim.
“Those who scam, steal and defraud our seniors are the lowest form of humanity,” said United States Attorney Mike Stuart. “Preying on the vulnerable and the trusting is detestable, despicable and diabolical. If you suspect you are the target of a scammer or fraudster, it is important you report the activity. We will do all we can to find the perpetrators and hold them accountable.”
Every day, elderly individuals become victims of scams online, through the mail, and through cell phone calls and texts. If you’re the victim of a scam, or suspect that a friend or relative has become the victim of a scam, don’t be embarrassed. You are not alone. Speak out and tell someone. Notify area law enforcement. Here are some tips to protect yourself and your loved ones from financial scams:
- Know that wiring money is like sending cash
- Don’t send money to someone you don’t know
- Don’t reply to messages asking for personal or financial information
- Don’t agree to deposit a check and wire money back for anyone
- Know that fraudsters will pose on the internet as interested romantic partners
- Know the federal government will never call you on the phone and ask for personal information
- After a disaster, give only to established charities
- Talk to your doctor before you buy health products or treatments
- Have a plan in place in case a medical emergency arises
- Order a credit report from one of the three credit reporting agencies, and freeze your credit so no additional lines of credit can be opened in your name
- Discuss the situation with your adult children.
- Do not send any money to the scammers, or agree to be a middle person receiving and forwarding on money to the scammers, even if they sound convincing.
Visit https://www.justice.gov/elderjustice for more information.
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Three from Charleston Sentenced to Prison for Roles in Methamphetamine ConspiracyRead the Press Release
CHARLESTON, W.Va. – Three individuals from Charleston received prison sentences for their roles in a methamphetamine conspiracy, announced United States Attorney Mike Stuart. The investigation was the result of a joint effort by the Drug Enforcement Administration, the Violent Crime and Drug Task Force West, and the Kanawha County Sheriff’s Department STOP Team.
“Another meth conspiracy -- BUSTED,” said United States Attorney Mike Stuart. “We’re putting a record number of meth traffickers behind bars.”
Melody Legg, 44, was sentenced to 120 months in prison. She previously pled guilty to an indictment charging her with conspiracy to distribute fifty grams or more of methamphetamine. Legg admitted that from at least June 2017 to September 2017, she distributed methamphetamine for Travis Thomas and others in Kanawha County. She conspired with Travis Thomas, William Naylor, Timothy Boggs, and Michael Ginther to distribute more than 50 grams of methamphetamine in exchange for money.
William Naylor, 30, was sentenced to 36 months in prison. He previously pled guilty to an indictment charging him with conspiracy to distribute methamphetamine. Naylor admitted that from at least June 2017 to September 2017, he worked with Melody Legg to distribute methamphetamine in Kanawha County. As part of the plea agreement, Naylor admitted to distributing methamphetamine to a confidential informant in June 2017.
Timothy Boggs, 21, was sentenced to 24 months in prison. He previously pled guilty to an indictment charging him with conspiracy to distribute five grams or more of methamphetamine. Boggs admitted that from at least June 2017 to September 2017, he distributed methamphetamine for Melody Legg in Kanawha County. As part of the plea agreement, Boggs admitted to distributing approximately 13 grams of methamphetamine to a confidential informant in July 2017.
United States District Judge Joseph R. Goodwin imposed the sentences. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Thomasville Business Owner Pleads Guilty to Importing and Distributing Thousands of Counterfeit Car PartsRead the Press Release
MACON— A Thomasville business owner trafficking in counterfeit car parts made in China pled guilty Friday for his crime, said U.S. Attorney Charles “Charlie” Peeler. Drexel C. Benton, 71, of Thomasville entered a guilty plea for Trafficking in Counterfeit Goods on March 29, 2019 before The Honorable Hugh Lawson. This charge carries a maximum sentence of 10 years imprisonment, a $2,000,000 maximum fine and up to three years supervised release. A sentencing date has not been set.
According to facts in the signed plea agreement, in January 2017 a special agent with the Department of Homeland Security Investigative Division (HIS) began an investigation on leads showing that the defendant was importing and selling counterfeit car parts from Chinese manufacturers at his Thomasville business, EZ Dealin, as well as on Ebay, where EZ Dealin was listed as a tire and rim “power seller” with a 20,000 square foot warehouse selling replica car parts from American car companies. EZ Dealin had more than 7,000 positive feedbacks on Ebay, indicating thousands of transactions. HSI conducted an undercover operation at EZ Dealin in February 2017, noting a much smaller warehouse than advertised, an estimated 24 feet long by 24 feet wide, filled to a quarter of its capacity with numerous brand wheels and tires. An employee showed the agents two types of GMC wheels with center caps displaying the GMC emblem.
Concurrently, United States Customs and Border Protection (CBP) officers conducted three separate legal seizures of parcels from China to EZ Dealin from November 2016 to April 2017. The individual parcels contained 540 automotive wheel center caps with counterfeit General Motors Truck Company (GMC) and Chevrolet emblems, 560 automotive wheel center caps with counterfeit GMC and Chevrolet emblems and 300 automotive rim center caps with counterfeit Chevrolet and Cadillac emblems.
Brand Protection Investigators from both Ford Motor Company and General Motors cooperated in the investigation. In March 2017, a private investigative firm hired by Ford conducted an Ebay online purchase of rims and center caps from EZ Dealin for $1,978. The purchased items bore counterfeit Ford emblems. GMC’s brand investigator reviewed and provided a list of 21 counterfeit Chevrolet and GMC parts then listed for sale by EZ Dealin on Ebay.
Financial analysis of subpoenaed PayPal information indicates that Mr. Benton conducted approximately $590,553.32 in transactions from April 12, 2017 until August 8, 2017. There were 26 transfers of funds from the PayPal account number into Mr. Benton’s private bank account totaling $688,000.00 during that period. On December 5, 2017, HSI and Thomas County Sheriff’s deputies executed search warrants at three locations associated with Mr. Benton and EZ Dealin, finding a multitude of automotive items bearing the registered trademarks of Chevrolet, GMC, Cadillac, Ford and Dodge, numbering 5,782 parts.
“Legitimate businesses work hard and invest significant resources to build a brand. Those who choose to deal in counterfeit goods are stealing the brand recognition and goodwill that businesses work so hard to develop,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “This office has made it a priority to protect businesses and consumers from counterfeit goods, whether from China or anywhere else in the world. I want to thank the investigative efforts of the Department of Homeland Security and the United States Customs and Border Protection for helping close down this illegal operation.”
“Criminal networks are working daily to fool the public with illegally imported counterfeit goods, some of which pose a grave threat to public safety,” said Nick Annan, special agent in charge of Homeland Security Investigations Atlanta. “Anyone who may think counterfeiting is a victimless crime need look no further than cases such as this. Persons rely on automotive parts, and when inferior counterfeit parts fail, the drivers who were exploited may be involved in accidents causing serious injury or death. HSI is appreciative of the U.S. Attorney’s partnership in this case and will continue to work with our law enforcement partners to identify and prosecute criminal counterfeiters who threaten public safety.”
This case was investigated by the Department of Homeland Security and the United States Customs and Border Protection, with assistance from the Thomas County Sheriff’s Office. Assistant United States Attorney Robert McCullers is prosecuting the case for the Government.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Tax Lawyer for Ex-NFL Player Gets 3 Years in Prison for Obstructing IRS and Filing False Documents without Player’s KnowledgeRead the Press Release
LOS ANGELES – A tax lawyer who represented retired professional football player Antrel Rolle was sentenced to 36 months in federal prison today for fraudulently obtaining tax refunds for Rolle, stealing the refunds and then covering up his scheme by filing false documents with the Internal Revenue Service.
Hiram M. Martin, 71, of Fair Oaks, California, pleaded guilty on January 7 to one felony count of attempting to obstruct or impede the administration of internal revenue laws. The three-year prison sentence handed down by United States District Judge Otis D. Wright II is the maximum amount of prison time possible under the law for the offense. Judge Wright also ordered Martin to pay $1,223,480 in restitution.
Martin admitted in his plea agreement that he submitted false tax returns for Rolle, who hired Martin when he was a 23-year-old rookie in the National Football League. The tax returns claimed millions of dollars in bogus charitable donations and business expenses, and Martin never informed Rolle about the phony deductions. The IRS issued tax refunds of $322,008 for the 2005 tax year and $901,472 for the 2006 year as a result of Martin’s deductions. Martin directed the IRS to deposit the refunds into Martin’s bank account or to mail the refunds to his mailing address. Martin then used the fraudulently obtained money for his own personal benefit, including an investment account under his control.
When the IRS began auditing Rolle’s tax returns for these years, Martin in August 2009 faxed two letters to the IRS that attempted to support the fraudulent donations. Martin then – without Rolle’s authorization – filed petitions in Tax Court challenging the IRS after it rejected the deductions. Martin has admitted that he forged Rolle’s signature on the Tax Court petitions. In May 2011, Martin – without Rolle’s knowledge or authorization – agreed to a judgment that imposed a tax liability of nearly $2 million on Rolle. Martin also admitted that he provided Rolle with a fabricated set of tax returns for 2005 and 2006 that did not claim any refunds – refunds that Martin never submitted to the IRS.
Martin also took steps to prevent the IRS from directly contacting Rolle by providing the IRS with his own personal and business addresses and claiming they were Rolle’s addresses. When a news article detailing Rolle’s tax liabilities were published in January 2010, Martin attempted to prevent Rolle from contacting the IRS by telling him that the article was not true.
This matter was investigated by IRS Criminal Investigation.
This case is being prosecuted by Assistant United States Attorneys Alexander Wyman and Ranee Katzenstein of the Major Frauds Section.
Shrewsbury Man Sentenced to 65 Months Imprisonment for Federal Gun Offenses Involving Unlawful Possession of Machine GunRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on March 26, 2019, Frank Weir, 57, of Shrewsbury, was sentenced by U.S. District Judge Christina Reiss to 65 months imprisonment. Weir had previously pled guilty to a two-count indictment and agreed to the 65-month sentence. The first count charged Weir with possessing a machine gun without a permit in February 2016. According to court records, the machine gun was a Thompson U.S. Navy 1928 submachine gun, .45 caliber (manufactured by Colt). The second count alleged that this same firearm had an obliterated serial number, in violation of federal law. Judge Reiss also sentenced Weir to three years of supervised release, which begins when he is released from prison.
The plea agreement was part of a global settlement with the federal government and the Rutland County State’s Attorney’s Office, where Weir is facing a separate and unrelated state charge of second-degree murder for the shooting death of Donna Marzilli on February 15, 2016. On March 27, 2019, Weir agreed to pled guilty to the state murder charge and receive a 20-year sentence, all suspended but eight years, to be served concurrently with the federal sentence. At the state hearing, the state court judge deferred acceptance of the state plea agreement until a pre-sentence investigation could be completed.
The machine gun at issue in this federal case was not related to the State’s murder charge. Under the National Firearms Act, a person may not possess a machine gun unless it is registered to that person in the National Firearms Registration and Transfer Record. A violation carries a maximum penalty of ten years. Under the Federal Gun Control Act, it is unlawful to possess a firearm with an obliterated serial number. This offense carries a maximum sentence of five years.
The advisory Sentencing Guidelines called for a sentence of only 30-37 months for Weir’s firearm offenses, which are unrelated to the murder of Donna Marzilli. The government argued, however, and Judge Reiss agreed, that a significantly higher sentence was justified based on a pattern of domestic abuse by Weir that culminated in Marzilli’s death. At sentencing, the government cited studies which show that when the abuser of a woman owns a firearm, the woman is five to six times more likely to be murdered.
United States Attorney Christina E. Nolan stated: “This is another example of how rigorous, collaborative enforcement of our federal firearms laws brings consequences to domestic abusers and takes them out of our communities. We will continue to work with our state and local partners to use existing federal laws to remove guns from the hands of dangerous individuals, particularly those who perpetrate the horror of domestic violence. We thank our counterparts in the Rutland County State’s Attorney’s Office for the close cooperation to achieve this result.”
U.S. Attorney Nolan noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Vermont State Police. The United States is represented by Assistant U.S. Attorney Joe Perella and Frank Weir is represented by Peter Langrock, Esq. of Middlebury.
Sex Offender Detained for Attempting to Entice a Minor, Transmit Obscene Material to a MinorRead the Press Release
PROVIDENCE – A registered sex offender from Waterbury, Conn., was ordered detained in federal custody in Rhode Island today on charges that he allegedly attempted to entice a minor, attempted to transmit obscene material to a minor, and that he committed these crimes while a registered sex offender.
It is alleged in court documents that Jesus Maldonado, 55, engaged in a series of sexually explicit online communications with a person he believed to be a 13-year-old girl living in Rhode Island while trying to arrange a meeting between the two, and that he allegedly sent obscene materials to this person.
The person Maldonado actually was communicating with is a Rhode Island State Police Detective assigned to the Rhode Island State Police Internet Crimes Against Children task force.
Maldonado was arrested in Waterbury, CT., on March 25, 2019, by Homeland Security Investigations agents and a Rhode Island State Police Detective. He was ordered detained following an appearance in U.S. District Court in New Haven on a federal criminal complaint issued in the District of Rhode Island that charges him with attempted enticement of a minor, attempted transmission of obscene matter to a minor, and commission of specified offenses while a registered sex offender.
Maldonado was transferred to Rhode Island and appeared today in U.S. District Court in Providence before U.S. District Court Magistrate Judge Lincoln D. Almond.
Maldonado’s arrest and initial appearance in U.S. District Court are announced by United States Attorney Aaron L. Weisman, Rhode Island State Police Superintendent Colonel James M. Manni, and Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh.
According to court documents, it is alleged that beginning on March 13, 2019, Maldonado began engaging in a series of sexually explicit online chatroom communications with a person he believed to be a 13-year-old girl living in Rhode Island. The communications allegedly included discussions about Maldonado and the person he believed to be a 13-year-old girl meeting in person to engage in illicit sexual activity. It is also alleged that Maldonado sent obscene photographs to the person he believed to be a 13-year-old girl.
According to court records, Maldonado was convicted in 1993 in Connecticut state court for sexual assault and in 2008 in Illinois state court for sexually abusing a minor. In 2011, Maldonado was again arrested in Connecticut for sexually abusing a minor, at which time it was determined that Maldonado had failed to register as a sex offender as required as a result of his previous convictions.
In October 2011, Maldonado was convicted in U.S. District Court in the District of Connecticut and sentenced to 84 months in federal prison and a term of lifetime supervised release for failing to register as a sex offender. Among the court imposed conditions of release was that Maldonado was not to associate with children under the age of 18 unless an adult was present and who was aware of his criminal history.
A criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Denise M. Barton.
United States Attorney for the District of Rhode Island Aaron L. Weisman acknowledges and thanks United States Attorney for the District of Connecticut John H. Durham and his office for their assistance in this matter.
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