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Wednesday 20 February 2019
Ohio County man sentenced for child pornography chargeRead the Press Release
WHEELING, WEST VIRGINIA – Justin Giesey, of Wheeling, West Virginia, was sentenced today to 24 months incarceration for possessing child pornography, United States Attorney Bill Powell announced.
Giesey, age 32, pled guilty to one count of “Possession of Child Pornography” in October 2018. Giesey admitted to having child pornography depicting a minor under the age of 12 in June 2017 in Ohio County.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Assistant U.S. Attorney David J., Perri prosecuted the case on behalf of the government. The Federal Bureau of Investigation, the West Virginia State Police, and the Wheeling Police Department investigated.
U.S. District Judge John Preston Bailey presided.
New York Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
BOSTON - A New York man, formerly residing in Massachusetts, was sentenced today in federal court in Boston for failing to register as a sex offender.
Angel Luis Morales, 31, was sentenced by U.S. District Court Judge Indira Talwani to 18 months in prison and five years of supervised release. In November 2018, Morales pleaded guilty to one count of failing to register as a sex offender.
Between 2013 and 2014, Morales was convicted in New York and Massachusetts of multiple sex offenses including open and gross lewdness and indecent assault and battery. These offenses involved multiple victims, and as a result, Morales was designated a Level III sex offender and required, among other things, to register for life with the Sex Offender Registry Board in any state in which he resided, worked, or attended school.
In 2017, Morales registered with the Sex Offender Registry Board in Massachusetts listing a Roxbury address. In March 2018, law enforcement in New York discovered that Morales had relocated to Rochester, N.Y. and had not updated his registration in New York or notified officials in Massachusetts of his relocation.
On May 18, 2018, Morales was arrested in Rochester and charged in the Western District of New York with failing to register as a sex offender. Morales was ordered detained without bail. He then requested that his case be transferred back to Massachusetts.
United States Attorney Andrew E. Lelling; United States Attorney for the Western District of New York James P. Kennedy Jr.; John Gibbons, U.S. Marshal for the District of Massachusetts; and Rochester (N.Y.) Police Chief Mark Simmons made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
New York Felon Found with Loaded Gun at New Haven Train Station Pleads GuiltyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL LAWRENCE, 26, of Mount Vernon, New York, waived his right to be indicted and pleaded guilty today in Hartford federal count to one count of possession of a firearm by a convicted felon.
According to court documents and statements made in court, on August 22, 2018, the Drug Enforcement Administration, Department of Homeland Security, MTA Police Department, Connecticut State Police, New Haven Police Department and Orange Police Department conducted a criminal interdiction and enforcement operation at Union Station in New Haven. During the course of a random inspection of Lawrence, a DEA special agent found a loaded .38 caliber handgun, and a small quantity of marijuana, in Lawrence’s backpack. The gun was reported stolen in Alabama in July 2018.
In 2015, Lawrence was convicted in New York of criminal possession of a controlled substance in the fifth degree.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Lawrence is scheduled to be sentenced by U.S. District Judge Michael P. Shea on May 15, 2019, at which time Lawrence faces a maximum term of imprisonment of 10 years.
Lawrence is currently incarcerated in New York for violating his probation.
This case is being prosecuted by Assistant U.S. Attorney Dave Vatti.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Missoula meth dealer sentenced to seven yearsRead the Press Release
MISSOULA—Missoula resident Canon Jack Byers, 32, who admitted to distributing more than seven pounds of methamphetamine in 2018, was sentenced today to seven years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Byers pleaded guilty in October to conspiracy to distribute meth.
Chief U.S. District Judge Dana L. Christensen presided.
Prosecutors said evidence would show that in 2018, Byers was identified as a meth dealer by confidential informants. One informant bought about five pounds of meth from Byers from March to May. Byers, who was arrested on May 20, 2018 on an outstanding probation violation, admitted to law enforcement that he had obtained more than seven pounds of meth from March until his arrest.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the Montana Regional Violent Crimes Task Force.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Mississippi couple pleads guilty to transporting cocaine through Webster ParishRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Demyia S. Porter, 39, of Canton, Mississippi, pleaded guilty last week before U.S. Magistrate Judge Mark L. Hornsby to conspiracy to possess with the intent to distribute 5 kilograms or more of cocaine. The plea will become final when accepted by U.S. District Judge Elizabeth E. Foote.
On August 20, 2018, a Louisiana State trooper initiated a traffic stop on Interstate 20 in Webster Parish on a vehicle driven by Porter, according to the guilty plea. After questioning Porter and the passenger of the vehicle, Naquita N. Graves, also of Canton, Mississippi, the trooper obtained consent by Porter to search the vehicle. He found $2,647 in Graves’ purse and approximately 10 kilograms of suspected cocaine in a suitcase in the trunk of the car. Graves and Porter admitted to traveling to Dallas to pick up the illegal drugs for a third unnamed individual.
The defendants face 10 years in prison, at least five years of supervised release and a $10 million fine. Graves pleaded guilty on February 7, 2019 to the same charge. The sentencing date for both defendants is June 14, 2019.
The DEA and the Louisiana State Police conducted the investigation. Assistant U.S. Attorneys Seth D. Reeg and Jessica D. Cassidy are prosecuting the case.
Mississippi Woman Pleads Guilty to Health Care Fraud, Money Laundering and Tax Evasion Charges for Role in $200 Million Compounding Pharmacy SchemeRead the Press Release
A Hattiesburg, Mississippi woman pleaded guilty today for her role in a $200 million scheme to defraud health care benefit programs, including TRICARE, which is the program that covers U.S. military service members and their families.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Mike Hurst of the Southern District of Mississippi; Special Agent in Charge Christopher Freeze of the FBI’s Jackson, Mississippi Field Division; Special Agent in Charge Thomas J. Holloman III of IRS Criminal Investigation’s (IRS-CI) Atlanta Field Office and Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office made the announcement.
Hope E. Thomley, 52, pleaded guilty before U.S. District Judge Keith Starrett of the Southern District of Mississippi to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering and tax evasion. She is scheduled to be sentenced by Judge Starrett on July 2. Thomley was charged in May 2018 in a 26-count indictment and had been scheduled to begin trial on March 19.
“Hope Thomley and her co-conspirators stole millions of dollars from a federal health care program that serves our nation’s brave military personnel and their families,” said Assistant Attorney General Benczkowski. “The Department of Justice and our law enforcement partners will continue to target unscrupulous medical professionals, business owners, and pharmacies that steal from our nation’s vital health care programs.”
“Today’s guilty plea in one of the largest health care fraud schemes in Mississippi history brings us one step closer to justice for our veterans, our military and the American taxpayers,” said U.S. Attorney Hurst. “I commend the hard work and dedication of our prosecutors, investigative agents and other law enforcement partners for pursuing this important case. We will not stop until all those who were involved in this despicable scheme have been brought to justice.”
“Hope Thomley was charged in a very complex scheme to launder criminally derived proceeds resulting from a fraud scheme against TRICARE,” said IRS-CI Special Agent in Charge Holloman. “Her efforts to conceal the source of her ill-gotten gains and evade taxes were the precise reason why IRS-CI’s involvement was so essential to unraveling the criminal conspiracies involved in this case. IRS special agents are uniquely equipped to decipher this type of criminal activity, and levy the appropriate charges to address the criminal conduct. As a result of the collaborative efforts of the investigative team, Hope Thomley agreed to accept responsibility for her actions and will now be held accountable for the breadth of her criminal conduct in this matter.”
“The Defense Criminal Investigative Service, with our investigative partners, will thoroughly investigate anyone who defrauds TRICARE, the Department of Defense health care program, and bring them to justice,” said DCIS Special Agent in Charge Khin. “The egregious corruption uncovered in this complex and expansive fraud scheme wasted and diverted millions of dollars in limited taxpayer funds that should have been spent on critical medical care for our military members and their families.”
At her plea hearing today, Thomley admitted her role in a scheme to defraud health care benefit programs, including TRICARE, by marketing medications known as compounded medications, which ordinarily are medications that are specially combined or formulated to meet the individual needs of patients. Thomley owned and operated the exclusive marketing agency for Advantage Pharmacy of Hattiesburg, and in that role, was responsible for obtaining prescriptions for which the pharmacy could obtain reimbursement from health care benefit programs. Thomley’s marketing company received nearly 50 percent of the reimbursements that Advantage Pharmacy obtained from the compounded medications. Thomley admitted that co-conspirators formulated Advantage Pharmacy’s compounded medications without regard to the individual needs of the patients, but instead with the goal of increasing reimbursements paid by health care benefit programs, and that she had contemporaneous knowledge of this. In order to further increase her profit, Thomley admittedly obtained prescribers’ signatures on blank prescription forms, and then filled out those forms with the names of her children and TRICARE beneficiaries that she and her husband recruited from the community to receive these medications. Thomley knew that Advantage Pharmacy would fill and submit claims for those falsified prescriptions to health care benefit programs, including TRICARE, she admitted.
Thomley also admitted her role in a money laundering and tax evasion scheme that she and other co-conspirators used to conceal the fraudulent proceeds and evade taxes. Through the scheme, Thomley evaded paying approximately $6.6 million in income taxes, she admitted. From approximately April 2012 through January 2016, health care benefit programs, including TRICARE, reimbursed Advantage Pharmacy and other pharmacies involved in the scheme at least $200 million.
The government seized more than $15 million in cash and other assets from Thomley, which will be forfeited in connection with her guilty plea.
Since 2017, nine other individuals involved in this scheme have pleaded guilty, and one was convicted at trial.
This case is being investigated by the FBI, IRS-CI and DCIS, among other agencies. Trial Attorneys Kate Payerle and Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mary Helen Wall of the Southern District of Mississippi and Sean Welsh of the Western District of Virginia, formerly of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), are prosecuting the case, with the support and assistance of Trial Attorney Amanda Wick of MLARS.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than 14 billion.
Michigan Sex Offender Pleads Guilty to Traveling to Destin to Have Sex with a MinorRead the Press Release
PENSACOLA, FLORIDA – Ronald Roscoe, 56, of Traverse City, Michigan, pleaded guilty yesterday to attempted enticement of a minor, travel with intent to engage in illicit sexual conduct, and transporting material involving sexual exploitation of minors. The guilty plea was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
In September 2018, an undercover investigator began chatting online to identify individuals interested in exploiting children. An individual, later identified as Roscoe, sent a private message via the social media platform KIK to the investigator, who was posing as a 12-year-old girl. Over the next month, Roscoe discussed sexual activity with the investigator posing as the girl and the possibility of meeting her in person.
During the week of October 15, 2018, Roscoe informed the investigator posing as the girl that he had purchased a plane ticket to fly from Michigan to Florida to engage in sexual contact with her over the weekend. Law enforcement located a hotel in Destin where Roscoe had reserved a room. Roscoe was arrested at the airport, and his cellular telephone contained child pornography, including children under age 12.
Roscoe faces the following potential penalties:
- Attempted enticement of a minor: a minimum of 10 years and a maximum of life;
- Travel to engage in sex with a minor: due to a prior sex offense conviction, a maximum of 60 years in prison; and
- Transporting material involving sexual exploitation of minors: due to a prior sex offense conviction, a minimum of 15 years in prison and a maximum of 40 years in prison.
Because Roscoe is a registered sex offender, he will receive a mandatory 10 years consecutive to imprisonment imposed for the attempted enticement and sex traveling charges.
The sentencing hearing is scheduled for May 6, 2019, at 10:00 a.m. at the United States Courthouse in Pensacola.
The case was investigated by United States Immigration and Customs Enforcement Homeland Security Investigations, the Okaloosa County Sheriff’s Office, and the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by First Assistant United States Attorney Jeffrey M. Tharp.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Michigan Man Pleads Guilty in Multi-Jurisdictional Investigation into Drug TraffickingRead the Press Release
PITTSBURGH, PA - A Michigan resident pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Victor Burnett, Jr., 38, of Oak Park, Michigan, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that Burnett conspired to possess with intent to distribute and distribution of heroin. Specifically, the court was advised that Burnett, who was intercepted over a Title III wiretap, possessed approximately 1,366 grams of heroin, five firearms, ammunition, a money counter, multiple cell phones, and over $20,000 in US currency in his residence on the date of his arrest on September 1, 2016. In addition, the court was advised that approximately 100 grams of heroin, originally supplied by Burnett, was sent via the United States mail and seized by agents on August 22, 2016 prior to reaching its final destination in the Western District of Pennsylvania where it was to be further distributed.
Judge Fischer scheduled sentencing for July 18, 2019. The law provides for a total sentence of not less than 10 years and up to life in prison, a fine of up to $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense(s) and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Amy L. Johnston is prosecuting this case on behalf of the government.
An OCDETF task force headed by the Federal Bureau of Investigation and comprised of members drawn from the FBI Greater Pittsburgh Safe Street Task Force including the Pittsburgh Bureau of Police, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, and the Allegheny County Police Department conducted the investigation leading to the prosecution. 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.
This 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 investigating a drug trafficking organization operating on Pittsburgh’s North Side and thereafter they were able to track drug suppliers beyond the borders of the Western District of Pennsylvania and the Eastern District of Michigan and across the Caribbean Sea.
Miami Medical Clinic Owner Pleads Guilty to Health Care Fraud SchemeRead the Press Release
A Miami, Florida-area medical clinic owner pleaded guilty today for her role in a scheme to defraud Medicare by submitting fraudulent billings from the clinic and by supplying patients to three home health agencies that submitted fraudulent bills for home health services.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and Special Agent in Charge Brian Swain of the U.S. Secret Service’s (USSS) Miami Field Office made the announcement.
Juliette Anais Tamayo, 53, of Miami, pleaded guilty to count two of a superseding indictment charging her with conspiracy to commit health care fraud and wire fraud. Tamayo previously pleaded guilty to count one of the superseding indictment, charging a conspiracy to pay and receive kickbacks and to defraud the United States. Her sentencing has been scheduled for April 30, 2019 by U.S. District Judge Cecelia Altonaga of the Southern District of Florida, who accepted both pleas.
Tamayo owned Sunshine Medical Care Group Inc. (Sunshine), a medical clinic in Miami. According to admissions made as part of her separate pleas to the health care fraud and kickback conspiracies, Tamayo solicited and accepted kickbacks from patient recruiters and from the owners of several Miami-area home health agencies in exchange for providing prescriptions for home health services to patients at Sunshine. The prescriptions, in turn, were used by the home health agencies to bill Medicare for home health services purportedly provided to Medicare beneficiaries. Tamayo paid a portion of the kickbacks she received from the home health agencies to physicians who worked at Sunshine to induce them to write the fraudulent prescriptions, she admitted.
The superseding indictment alleged that the losses to Medicare as a result of the scheme were approximately $3.7 million.
The principals of the home health agencies and one of the Sunshine physicians who wrote fraudulent prescriptions previously pleaded guilty to conspiracy to commit health care fraud in separate matters.
The case was investigated by the FBI, HHS-OIG and the U.S. Secret Service. Trial Attorneys Adam G. Yoffie and Gary A. Winters of the Criminal Division’s Fraud Section are prosecuting the case.
The Criminal Division’s 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.
Mexican citizen pleads guilty to illegally re-entering the United States for the seventh timeRead the Press Release
SHREVEPORT, La. – Andres Garcia-Mora, 32, of Mexico, pleaded guilty today before Chief Judge Maurice Hicks Jr. to one count of re-entry of a removed alien, U.S. Attorney David C. Joseph announced.
According to the guilty plea, Louisiana State Police arrested Garcia-Mora in Bossier Parish. Homeland Security Investigations discovered that Garcia-Mora was an illegal alien who had been removed from the United States six times between 2009 and 2016. During that time, Garcia-Mora used at least eight aliases in his attempts to enter the United States. The last removal took place on December 30, 2016 near Del Rio, Texas. Garci-Mora has three federal convictions for immigration offenses.
Garcia-Mora faces two years in prison, one year of supervised release, and a $250,000 fine. Hicks set the sentencing for May 30, 2019.
Homeland Security Investigations investigated the case. Assistant U.S. Attorney Leon H. Whitten is prosecuting the case.
Mexican National Who Was Smuggled into the United States Pleads Guilty to Reentry of Removed AlienRead the Press Release
St. Croix, USVI – On Monday, February 4, 2019, Manuel Alberto Fuentes-Acosta, a citizen of Mexico, pleaded guilty before U.S. Magistrate Judge George Cannon, Jr., to reentry of removed alien, United States Attorney Gretchen C.F. Shappert announced.
According to court documents, the defendant, a Mexican citizen, presented himself to Customs and border Protection (CBP) primary inspection at the St. Croix Rohlsen Airport on November 9, 2018, while attempting to board an American Airlines flight. The defendant told the CBP officer that he was illegally in the United States, and he was referred to secondary inspection where he repeated that he was in the United States illegally and did not have the requisite visa. The defendant was arrested. He informed Homeland Security Investigations (HSI) agents that he entered the United States in 1996 illegally and was deported in 2017 from Laredo, TX. The defendant also stated that he had remained in Mexico and later returned to the United States without inspection. He also told HSI agents that he paid a smuggler $2,000 to $3,000 to return to the United States by crossing the river from Mexico to Del Rio, TX in April 2018.
The investigation revealed the defendant was deported on June 1, 2017 from Laredo, TX to Nuevo Laredo, Mexico via foot and the defendant did not obtain consent from the Attorney General to re-enter the United States.
Fuentes-Acosta faces a maximum sentence of 10 years in prison and a $250,000 fine. A sentencing date has been set for June 5, 2019.
The case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Rhonda Williams-Henry.
Massachusetts Man Sentenced to over Five Years on Fentanyl and Crack ChargesRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Fray Cayetano, 23, of Lawrence, Massachusetts was sentenced today in U.S. District Court by Judge D. Brock Hornby to 69 months in prison and three years of supervised release for distributing fentanyl and conspiring to distribute fentanyl and cocaine base, commonly known as, “crack.” Cayetano pled guilty on October 17, 2018.
Court records reveal that on May 29 and August 17, 2018, the defendant distributed fentanyl to person working with federal law enforcement. After the second transaction, agents arrested Cayetano and a co-conspirator, Anthony Reynoso, and seized crack from Reynoso’s vehicle that the defendant intended to distribute.
Reynoso pled guilty to conspiracy and aiding and abetting the distribution of fentanyl on October 29, 2018 and is awaiting sentencing.
This case was investigated by the U.S. Drug Enforcement Administration and the Kittery, York and Eliot Police Departments and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Many resident pleads guilty to distributing methamphetamine from his homeRead the Press Release
SHREVEPORT, La. – Marvin Ray Loucious, 54, of Many, Louisiana, pleaded guilty yesterday before U.S. District Judge Elizabeth E. Foote to possession with intent to distribute methamphetamine, U.S. Attorney David C. Joseph announced.
According to the guilty plea, law enforcement agents observed Loucious selling 5 grams of methamphetamine on July 20, 2018 and 6 grams on July 23, 2018 from his home. Agents executed a search warrant at his home on August 10, 2018 and found 160 grams of methamphetamine, digital scales, plastic baggies and approximately 100 glass smoking pipes. Agents also recovered 55 firearms, with the following five weapons being in close proximity to the methamphetamine: a Glock 32, .357-caliber SIG handgun, a Ruger P90, .45-caliber ACP handgun, a Taurus, TCP, .380-caliber handgun, a Davis Industries, Model DM-22, .22-caliber, 2-shot derringer handgun, and a Century Arms, Catamount Fury, 12-gauge semi-automatic shotgun.
Loucious faces up to 40 years in prison, at least four years of supervised release and a $5 million fine. Judge Foote set the sentencing date for June 18, 2019.
The DEA and the Tri-Parish Drug Task Force (DeSoto, Sabine and Red River parishes) conducted the investigation. Assistant U.S. Attorney Jessica D. Cassidy is prosecuting the case.
Manhattan U.S. Attorney Announces $5.3 Million Proposed Settlement of Lawsuit Against New York City for Fraudulently Obtaining FEMA Funds Following Superstorm SandyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Mark Tasky, Special Agent in Charge of the New York Regional Office of the Department of Homeland Security Office of Inspector General (“DHS-OIG”), and Margaret Garnett, Commissioner, New York City Department of Investigation (“DOI”), announced today that the United States filed a civil fraud lawsuit today against the CITY OF NEW YORK (the “City”) alleging that the NEW YORK CITY DEPARTMENT OF TRANSPORTATION (“NYCDOT”) fraudulently obtained millions of dollars from the Federal Emergency Management Agency (“FEMA”) by falsely claiming that numerous NYCDOT vehicles were damaged during Superstorm Sandy (“Sandy”). The United States also submitted a proposed settlement of the lawsuit to the U.S. District Court for review and approval. Under the proposed settlement, the City agreed to pay and revert to the United States a total of $5,303,624 and admitted to conduct alleged in the Government’s complaint, including seeking reimbursement from FEMA for vehicles that were not damaged by Sandy.
Manhattan U.S. Attorney Geoffrey S. Berman said: “FEMA serves a critical role in providing emergency relief to those who are tragically struck by disaster. When people lie to FEMA about the cause of property damage in order to reap a windfall, it compromises FEMA’s ability to provide financial assistance to legitimate disaster victims in desperate need. This Office will take decisive enforcement action to protect FEMA and its vital programs from fraud, waste, and abuse.”
DHS-OIG Special Agent in Charge Mark Tasky said: “Taking advantage of Federal funds intended for disaster relief misappropriates taxpayer dollars, reduces funds available to true victims, and erodes public confidence in relief efforts. Through DHS OIG’s criminal and civil investigative oversight function of DHS programs, and working closely with our partners in the New York City’s Department of Investigation and the United States Attorney’s Office for the Southern District of New York, we ensured that over $5.3 million in disaster relief funds were repaid to the United States, and ultimately the U.S. taxpayer. With so many New York residents impacted by Superstorm Sandy, it is critical to ensure every dollar of appropriated relief funds are properly used and accounted for.”
DOI Commissioner Margaret Garnett said: “Today’s settlement is the successful outcome of a joint investigation with our federal partners, which uncovered falsified submissions by the City to the federal government that allowed the City to wrongly obtain millions of dollars in federal emergency funds. Our investigation found that a lack of vigilant management and inadequate training of City personnel at the City Department of Transportation led to this wrongdoing in connection with a federal public assistance program. As New York City’s independent watchdog, DOI is grateful for our effective partnership with the United States Attorney’s Office for the Southern District of New York and the New York Regional Office of the United States Department of Homeland Security Office of the Inspector General on this investigation.”
According to the Government’s Complaint, the City participated in FEMA’s Public Assistance program, which allows municipalities to obtain indemnification funds from FEMA to repair or replace property damaged by natural disasters, such as Sandy. As part of the program, the City was required to certify that the property damage was incurred as a direct result of the disaster. The City was also required to provide training to employees on program rules and requirements, including the importance of ensuring that costs for which indemnification is sought are directly attributable to a disaster.
Following Sandy, the NYCDOT created a list of vehicles within the agency’s fleet that had been damaged by the storm and submitted it to FEMA for indemnification pursuant to the Public Assistance program. The NYCDOT personnel responsible for generating the list of damaged vehicles, to whom the City provided no training on the Public Assistance program, made no effort to inspect the vehicles or otherwise determine whether any reported damage was attributable to Sandy. In fact, a number of the vehicles included on this list were inoperable long before Sandy.
In 2014, based on this faulty list, the City submitted a request for indemnification to FEMA seeking to recover the full cost of replacing 132 NYCDOT vehicles. The City submitted a certification to FEMA as part of the program and a request for indemnification that falsely attested that all costs were incurred as a direct result of Sandy. Many of the vehicles for which the City sought full replacement costs had been nonoperational or not in use prior to the storm. As a result of these false certifications, FEMA paid the City millions of dollars to which it was not entitled.
As part of the proposed settlement, the City will pay the United States a total of $5,303,624. Specifically, the City will make a cash payment of $4,126,227.34 and relinquish rights to an additional $1,177,396.66 that FEMA had previously approved for disbursement. During this Office’s investigation, the City withdrew another $3,196,376 in indemnity requests, acknowledging that the costs were ineligible for reimbursement.
In connection with the proposed settlement, the City also admitted conduct alleged in the Complaint, including:
- The Deputy Commissioner from NYCDOT who signed the certification lacked personal knowledge about the vehicles sufficient to make a certification about how and when they were damaged and did not personally undertake or direct others to undertake any investigation of the vehicles prior to signing the certification.
- The list of vehicles for which the City was seeking reimbursement included a number of vehicles that were not damaged as a direct result of Sandy to a state beyond repair. A number of the vehicles that the City included had not been operational prior to Sandy.
- Prior to making the submission and certification to FEMA, neither the City nor NYCDOT undertook a sufficient review to ascertain whether all of the vehicles listed had been operational and in use prior to Sandy; or whether the amounts presented to FEMA for reimbursement accurately represented the losses the City incurred from Sandy.
- In June 2014, a NYCDOT employee notified the Deputy Commissioner that certain of the vehicles for which the City had sought reimbursement from FEMA were not eligible. Yet, it was not until after it became aware of this Office’s investigation that the City took steps to notify FEMA.
The proposed settlement must be approved by the District Court.
Mr. Berman praised the outstanding investigative work of DHS-OIG and DOI. This case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Jessica Jean Hu is in charge of the case.
- The Deputy Commissioner from NYCDOT who signed the certification lacked personal knowledge about the vehicles sufficient to make a certification about how and when they were damaged and did not personally undertake or direct others to undertake any investigation of the vehicles prior to signing the certification.
Manchester Man Sentenced to 85 Months in Prison for Fentanyl TraffickingRead the Press Release
CONCORD – Alvaro Garcia, 30, of Manchester, was sentenced to 85 months in prison for participating in a conspiracy to distribute fentanyl, announced United States Attorney Scott W. Murray.
According to court documents and statements made in court, the defendant participated with three co-defendants in a conspiracy to distribute fentanyl in New Hampshire. On several occasions, the defendant met in Nashua with his co-defendant suppliers from Massachusetts to obtain drugs that he then distributed in the Manchester area. The conspiracy involved in excess of 1.2 kilograms of fentanyl.
All of Garcia’s co-defendants also have been convicted. Migdalia Cintron was sentenced to 30 months in prison. Ramon Paniagua Perez was sentenced to 52 months in prison. David Alexander Arias was sentenced to 41 months in prison.
Alvaro Garcia previously pleaded guilty on August 30, 2018.
“Fentanyl traffickers who choose to operate in New Hampshire should expect to be arrested, prosecuted and imprisoned,” said U.S. Attorney Murray. “We are committed to working closely with enforcement agencies at all levels of government to end the distribution of this deadly drug. This case is a testament to the effectiveness of coordinated law enforcement efforts.”
“Fentanyl is causing deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Mr. Garcia accountable for his crimes but serves as a warning to those traffickers who are fueling the opioid epidemic.”
This matter was investigated by the Drug Enforcement Administration with assistance from the New Hampshire State Police, the Manchester Police Department, the Nashua Police Department, the Massachusetts State Police, the United States Marshals Service, and the United States Probation Office. The case was prosecuted by Assistant U.S. Attorney Seth Aframe.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Maine Woman Sentenced to 36 Months for Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD - Shannon Battle, 39, of Bangor, Maine was sentenced to 36 months in prison for participating in a fentanyl trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on July 20, 2017, a New Hampshire State Police trooper patrolling I-95 stopped a vehicle due to a defective brake light. Battle was a passenger in the vehicle. Troopers ultimately discovered that the defendant was concealing a large package containing approximately 131 grams of fentanyl on her person. During questioning, the defendant admitted that she travelled to Waterbury, Connecticut to pick up the fentanyl, which she was transporting to sell in the Bangor, Maine area.
Co-Defendants Danyelle McGarr and Heather Telescon also have pleaded guilty and are awaiting sentencing. Battle previously pleaded guilty on September 27, 2018.
“Fentanyl trafficking carries significant damage to the health and safety of communities throughout New England,” said U.S. Attorney Murray. “I am grateful to the New Hampshire State Police for their vigilant enforcement work on this case. The troopers prevented a substantial amount of this deadly drug from being distributed.”
This matter was investigated by the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Anna Dronzek.
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Mississippi Woman Pleads Guilty to Health Care Fraud, Money Laundering and Tax Evasion Charges for Role in $200 Million Compounding Pharmacy SchemeRead the Press Release
WASHINGTON – A Hattiesburg, Mississippi woman pleaded guilty today for her role in a $200 million scheme to defraud health care benefit programs, including TRICARE, which is the program that covers U.S. military service members and their families.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Mike Hurst of the Southern District of Mississippi; Special Agent in Charge Christopher Freeze of the FBI’s Jackson, Mississippi Field Division; Special Agent in Charge Thomas J. Holloman III of IRS Criminal Investigation’s (IRS-CI) Atlanta Field Office and Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office made the announcement.
Hope E. Thomley, 52, pleaded guilty before U.S. District Judge Keith Starrett of the Southern District of Mississippi to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering and tax evasion. She is scheduled to be sentenced by Judge Starrett on July 2. Thomley was charged in May 2018 in a 26-count indictment and had been scheduled to begin trial on March 19.
“Hope Thomley and her co-conspirators stole millions of dollars from a federal health care program that serves our nation’s brave military personnel and their families,” said Assistant Attorney General Benczkowski. “The Department of Justice and our law enforcement partners will continue to target unscrupulous medical professionals, business owners, and pharmacies that steal from our nation’s vital health care programs.”
“Today’s guilty plea in one of the largest health care fraud schemes in Mississippi history brings us one step closer to justice for our veterans, our military and the American taxpayers,” said U.S. Attorney Hurst. “I commend the hard work and dedication of our prosecutors, investigative agents and other law enforcement partners for pursuing this important case. We will not stop until all those who were involved in this despicable scheme have been brought to justice.”
“Hope Thomley was charged in a very complex scheme to launder criminally derived proceeds resulting from a fraud scheme against TRICARE,” said IRS-CI Special Agent in Charge Holloman. “Her efforts to conceal the source of her ill-gotten gains and evade taxes were the precise reason why IRS-CI’s involvement was so essential to unraveling the criminal conspiracies involved in this case. IRS special agents are uniquely equipped to decipher this type of criminal activity, and levy the appropriate charges to address the criminal conduct. As a result of the collaborative efforts of the investigative team, Hope Thomley agreed to accept responsibility for her actions and will now be held accountable for the breadth of her criminal conduct in this matter.”
“The Defense Criminal Investigative Service, with our investigative partners, will thoroughly investigate anyone who defrauds TRICARE, the Department of Defense health care program, and bring them to justice,” said DCIS Special Agent in Charge Khin. “The egregious corruption uncovered in this complex and expansive fraud scheme wasted and diverted millions of dollars in limited taxpayer funds that should have been spent on critical medical care for our military members and their families.”
At her plea hearing today, Thomley admitted her role in a scheme to defraud health care benefit programs, including TRICARE, by marketing medications known as compounded medications, which ordinarily are medications that are specially combined or formulated to meet the individual needs of patients. Thomley owned and operated the exclusive marketing agency for Advantage Pharmacy of Hattiesburg, and in that role, was responsible for obtaining prescriptions for which the pharmacy could obtain reimbursement from health care benefit programs. Thomley’s marketing company received nearly 50 percent of the reimbursements that Advantage Pharmacy obtained from the compounded medications. Thomley admitted that co-conspirators formulated Advantage Pharmacy’s compounded medications without regard to the individual needs of the patients, but instead with the goal of increasing reimbursements paid by health care benefit programs, and that she had contemporaneous knowledge of this. In order to further increase her profit, Thomley admittedly obtained prescribers’ signatures on blank prescription forms, and then filled out those forms with the names of her children and TRICARE beneficiaries that she and her husband recruited from the community to receive these medications. Thomley knew that Advantage Pharmacy would fill and submit claims for those falsified prescriptions to health care benefit programs, including TRICARE, she admitted.
Thomley also admitted her role in a money laundering and tax evasion scheme that she and other co-conspirators used to conceal the fraudulent proceeds and evade taxes. Through the scheme, Thomley evaded paying approximately $6.6 million in income taxes, she admitted. From approximately April 2012 through January 2016, health care benefit programs, including TRICARE, reimbursed Advantage Pharmacy and other pharmacies involved in the scheme at least $200 million.
The government seized more than $15 million in cash and other assets from Thomley, which will be forfeited in connection with her guilty plea.
Since 2017, nine other individuals involved in this scheme have pleaded guilty, and one was convicted at trial.
This case is being investigated by the FBI, IRS-CI and DCIS, among other agencies. Trial Attorneys Kate Payerle and Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mary Helen Wall of the Southern District of Mississippi and Sean Welsh of the Western District of Virginia, formerly of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), are prosecuting the case, with the support and assistance of Trial Attorney Amanda Wick of MLARS.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than 14 billion.
Lower Brule Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on February 19, 2019, by U.S. District Judge Roberto A. Lange.
Shanna St. Cloud, age 21, was sentenced to 10 years in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
St. Cloud was indicted by a federal grand jury on September 11, 2018. She pled guilty on November 27, 2018.
Beginning at a time unknown, but no later than December 1, 2015, through September 11, 2018, St. Cloud knowingly and intentionally conspired with others to distribute methamphetamine in the District of South Dakota, in and around the Crow Creek and Lower Brule Sioux Indian Reservations. The individuals who provided St. Cloud with methamphetamine knew that she intended to engage in further distribution. St. Cloud admitted that between 500 grams and 1.5 kilograms of methamphetamine was distributed during the course of the conspiracy.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force and the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
St. Cloud was immediately turned over to the custody of the U.S. Marshals Service.
Lowell Man Charged with Illegal FirearmRead the Press Release
BOSTON - A Lowell man was arrested yesterday and charged in federal court in Boston with being a felon in possession of a firearm.
Pablo L. Rivera, 53, was charged with one count of being a felon in possession of a firearm.
According to the charging document, on Feb. 8, 2019, during a motor vehicle stop, law enforcement recovered a loaded P-38 Walther 9mm firearm and six rounds of ammunition from the vehicle Rivera was driving. Rivera is prohibited from possessing a firearm due to prior convictions punishable by more than one year in person.
The charging statute provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Lucy Sun of Lelling’s Worcester Branch Office is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lowell Man Charged with Illegal FirearmRead the Press Release
BOSTON - A Lowell man was arrested yesterday and charged in federal court in Boston with being a felon in possession of a firearm.
Pablo L. Rivera, 53, was charged with one count of being a felon in possession of a firearm.
According to the charging document, on Feb. 8, 2019, during a motor vehicle stop, law enforcement recovered a loaded P-38 Walther 9mm firearm and six rounds of ammunition from the vehicle Rivera was driving. Rivera is prohibited from possessing a firearm due to prior convictions punishable by more than one year in person.
The charging statute provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Lucy Sun of Lelling’s Worcester Branch Office is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Louisiana Teacher Pleads Guilty to Child EnticementRead the Press Release
BOSTON - A Louisiana teacher pleaded guilty today in federal court in Boston to child enticement related offenses.
Logan Procell, 25, pleaded guilty to one count of coercion and enticement of a minor and one count of transfer of obscene material to a minor. U.S. District Court Judge Denise J. Casper scheduled sentencing for June 3, 2019. Procell was indicted in October 2017 and has been in custody since.
Procell first contacted an 11-year-old Massachusetts girl via Snapchat after seeing her on a different online application that allows users to publish videos in real time. After obtaining her phone number, Procell began communicating with her by text. The child’s parent discovered approximately one month’s worth of their communications in September 2017. The exchange of more than 1600 messages contained sexually explicit images and messages sent by Procell to the child, including pictures of his penis, requests for her to send him pornographic images of herself, and discussions about meeting her to have sex. At the time of the offense, Procell was a chemistry teacher at a high school in Noble, La.
The charge of coercion and enticement of a minor carries a minimum sentence of 10 years and up to life in prison, at least five years and up to a lifetime of supervised release, and a fine of up to $250,000. The charge of transfer of obscene material to a minor provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today. Valuable assistance was provided by the Louisiana State Police and the Waltham Police Department. Assistant U.S. Attorneys Anne Paruti and Mackenzie Queenin are prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Jamestown Man Pleads Guilty for His Role in Methamphetamine RingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Ernest Clayburn Cauley, Jr., 27, of Jamestown, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to conspiracy to possess with intent to distribute five grams or more of methamphetamine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine of $5,000,000.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that between March 2017 and November 7, 2017, the defendant conspired with co-defendant Zakiel Fields, and others, to sell methamphetamine in the Jamestown, NY area. Cauley and Fields were the main suppliers of methamphetamine to a drug trafficking organization that was being investigated by the Federal Bureau of Investigation and the Jamestown Metro Drug Task Force (JMDTF).
On April 26, 2017, Cauley met with an individual working with the task force, and exchanged methamphetamine for $120.00 in cash. The defendants were subsequently arrested on November 6, 2017, following a drug transaction during which Cauley and Field received a quantity of methamphetamine. Cauley and Fields, driving in separate cars, were pulled over by police and arrested. Methamphetamine was found in the car in which Fields was riding.
Co-defendant Zakiel Leonard Fields, Jr. was previously convicted and is awaiting sentencing.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Jamestown Police Department, under the direction of Chief Harry Snellings.
Cauley is scheduled to be sentenced on July 2, 2019, at 9:30 am before Judge Vilardo.
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James Fitzgerald “Boogie” Simonton Sentenced to 330 Months for Crack Cocaine, Firearms and Witness Intimidation OffensesRead the Press Release
GREENEVILLE, Tenn. - On February 20, 2019, James Fitzgerald Simonton, a/k/a “Boogie,” 51, of Kingsport, Tennessee, was sentenced by the Honorable J. Ronnie Greer, Senior U.S. District Judge, to serve 330 months in federal prison. There is no parole in the federal system.
Simonton was convicted by a jury, in March 2018, following a three-day trial, for conspiracy to distribute 280 grams or more of crack cocaine; possession of firearms in furtherance of a drug trafficking offense; three counts of being felon in possession of firearms; and, witness intimidation. Evidence presented at trial revealed that an investigation began following the May 2016 appearance of two young males with gunshot wounds at Indian Path Hospital, one of whom was Simonton’s son. Detectives developed Simonton as a suspect in the shooting of the two. When officers went to his residence, they found a Glock pistol with extended magazine, which was traced by the Alcohol, Tobacco, Firearms, and Explosives (ATF) to Simonton’s neighbor. Through the trace, detectives learned the firearm had been purchased at Academy Sports in Johnson City. Academy provided paperwork for the transaction and surveillance video from its store, which reflected Simonton had been present along with a codefendant during the purchase of the firearm. Additional surveillance video showed that Simonton was present when another firearm was purchased by his then girlfriend. As the investigation progressed, two codefendants, one of whom was another son of Simonton, were arrested for possession of crack cocaine, leading to information about Simonton’s involvement in trafficking of crack cocaine from a source in Georgia into Sullivan County, Tennessee. Ultimately, the investigation successfully uncovered the firearm used in the shooting of the two young males, an AK63, 7.62 caliber rifle.
After his arrest, and while in federal custody, Simonton threatened a cooperating witness against him in an effort to influence that witness’ testimony. The jury found him guilty of intimidation of that witness.
Law enforcement agencies participating in this joint investigation were the Kingsport Police Department, Sullivan County Sheriff’s Office, and ATF. Assistant U.S. Attorney J. Gregory Bowman represented the United States in court proceedings.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
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Hudson County Man Sentenced to 10 Years in Prison for Role in Conspiracy to Distribute CocaineRead the Press Release
NEWARK, N.J. – A Jersey City, New Jersey, man was sentenced today to 120 months in prison for his role in a cocaine distribution conspiracy operating in Jersey City, U.S. Attorney Craig Carpenito announced.
Rayfael Roman, 34, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Roman admitted that from September 2017 through Feb. 7, 2018, he conspired with others to distribute cocaine. Roman also admitted that in February 2018 he spoke on the telephone with a conspirator and agreed to sell that person one kilogram of cocaine for $29,500. Law enforcement officials intercepted these conversations using a court order to intercept wire and electronic communications on Roman’s cellular phone.
Before Roman and the conspirator could complete the cocaine sale, law enforcement officers obtained and executed a search warrant for Roman’s apartment in Jersey City. They found approximately 2.5 kilograms of cocaine, approximately $30,000 in cash, and various other materials commonly associated with drug distribution, such as an electronic money-counting machine, a digital scale, and drug-packaging materials.
In addition to the prison term, Judge McNulty sentenced Roman to five years of supervised release.
U.S. Attorney Carpenito credited the Hudson County Prosecutor’s Office under the leadership of Prosecutor Esther Suarez, and special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
Home Health Nurse Sentenced to Federal Prison for Tampering with Patients' MedicationRead the Press Release
Kristie Mollohan Stole and Diluted Seizure Medication From Disabled Patients
GRAND RAPIDS, MICHIGAN —Kristie Ann Mollohan, 42, formerly of Kalamazoo, Michigan and currently of Cosby, Tennessee, was sentenced to 82 months in prison for drug tampering, U.S. Attorney Andrew Birge announced today. In addition to the prison term, U.S. District Judge Gordon J. Quist imposed a 2-year term of supervised release that will commence once Mollohan is released from federal prison.
Mollohan pled guilty on May 10, 2018, to two counts of drug tampering, involving liquid diazepam (Valium), a Schedule IV controlled substance. Mollohan, who was a licensed practical nurse working for a home health company, admitted to stealing Valium from three patients in two homes in August of 2016. All three patients relied on Valium to suppress life-threatening seizure activity, were completely disabled, and required 24-hour care by their families or other caregivers at the time of the thefts. Mollohan replaced the Valium that she stole with water or saline solution, leaving the patients’ medication 90-99% diluted. Mollohan acknowledged that her conduct resulted in one of the patients having a life-threatening seizure.
In imposing sentence, Judge Quist called Mollohan’s conduct "reprehensible." He emphasized that patients must rely on medical professionals to be honest and act professionally, to administer patients’ drugs and not steal them. Judge Quist remanded Mollohan to begin serving her federal sentence at the end of the sentencing hearing.
In its sentencing memorandum, the U.S. Attorney’s Office noted that federal drug tampering involves the "reckless disregard for the risk that another person will be placed in danger of death or bodily injury and under circumstances manifesting extreme indifference to such risk." The U.S. Attorney’s Office emphasized that Mollohan was previously investigated for stealing a patient’s medication and argued that Mollohan "used that experience to devise a plan to steal medication in a manner that would be both harder to uncover and more dangerous to her patients."
U.S. Attorney Birge stated: "Licensed health care professionals who not only steal drugs but then render those drugs dangerous or ineffective are committing a heinous offense. Patients may not know – and in this case may not be able to express -- that something is wrong with their medication until it is too late and they suffer a serious consequence. My office will continue to work with the Food and Drug Administration as well as state and local investigators to punish and deter professionals who engage in such deceitful and dangerous conduct."
"Patients deserve to have confidence that they are receiving the proper treatment from those entrusted with providing their medical care," said Special Agent in Charge William P. Conway, FDA Office of Criminal Investigations’ Chicago Field Office. "However, we must hold medical personnel accountable when they take advantage of their unique position and tamper with drugs needed by their patients, especially when such tampering causes unnecessary pain and suffering for those who are unable to care for themselves."
This matter was investigated by the Food and Drug Administration, Office of Criminal Investigations, the U.S. Department of Health and Human Services, Office of Inspector General, the Michigan State Police, and the Allegan Police Department. The Barry and Allegan County Prosecutors’ Offices also cooperated with the investigation. Assistant U.S. Attorney Raymond E. Beckering III prosecuted the case.
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Fredericksburg Woman Sentenced to Federal Prison on Bank Fraud ChargeRead the Press Release
In San Antonio today, a federal judge sentenced 52-year-old Stacey A. Sanders, the former office manager of Memorial Presbyterian Church, located in Fredericksburg, TX, to 27 months imprisonment in connection with a scheme to write and sign unauthorized checks on the church’s bank accounts, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs.
In addition to the prison term, U.S. District Judge Xavier Rodriguez ordered Sanders to pay a total of $420,306.69 in restitution, $20,219.43 to Security State Bank and $400,087.26 to Memorial Presbyterian Church. Judge Rodriguez also ordered that Sanders be placed on supervised release for a period of five years after completing her prison term. Judge Rodriguez allowed Sanders to remain on bond pending notification from the U.S. Bureau of Prisons regarding the date and location to report in order to begin serving her prison term, to be no later than May 31, 2019.
On March 22, 2018, Sanders pleaded guilty to one count of bank fraud. By pleading guilty, Sanders admitted that without authorization she moved large sums of money from the church’s trust account to its operating account on numerous occasions by writing forged checks on the trust account and depositing them in the operating account. In so doing, Defendant eventually depleted the trust account as its balance went from $194,439.23 in 2009 to $178 by December 2016. Defendant then wrote herself numerous, unauthorized, forged checks from the operating account from the latter part of 2009 to December 2016. To conceal her activity, Defendant wrote various false statements on the checks’ memo line, such as “social security offset,” “additional payroll,” or “cleaning supplies.”
“It’s hard to believe that this has to be said, but stealing from houses of worship is really, really wrong. When you defraud a bank to do it, it can become a federal case,” stated U.S. Attorney Bash.
Special Agents of the FBI investigated this case, which was prosecuted by Assistant U.S. Attorney William R. Harris on behalf of the Government.
Former school IT manager sentenced to 11 years in prison for having child pornographyRead the Press Release
A Massillon man who worked as a school information technology manager was sentenced to 11 years in prison for possessing child pornography.
Andrew A. Shonk, 37, previously pleaded guilty to receiving and possessing visual depictions of minors engaged in sexually explicit conduct.
Shonk knowingly received numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. This took place between 2013 and 2018. Shonk also possessed two USB storage devices that contained child pornography, according to court documents.
Shonk worked as an IT manager at Rootstown and then Hudson schools during the time of his crimes, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Carol M. Skutnik following an investigation by the Federal Bureau of Investigation Child Exploitation Task Force, the Canton Police Department and the Jackson Township Police Department.
Former Utica Man Sentenced on Marijuana and Money Laundering ConvictionsRead the Press Release
SYRACUSE, NEW YORK – Gary Velletto, age 38, formerly of Utica, New York, and Las Vegas, Nevada, was sentenced today to 57 months in prison for his roles in marijuana and money laundering conspiracies.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Between January 2011 and August 2015, in the Northern District of New York, the District of Nevada, and elsewhere, Velletto conspired with Las Vegas resident Anthony Wills and others to possess with intent to distribute and distribute 100 kilograms or more of marijuana. As part of the conspiracy, Velletto, together with Wills and other co-conspirators, frequently obtained distribution-sized amounts of marijuana from different sources of supply in California and shipped or caused to be shipped the marijuana to various parts of the United States including the Utica area. Velletto admitted that as a result of his participation in the marijuana conspiracy, he was personally responsible for more than 100 but less than 400 kilograms of marijuana.
To pay for the marijuana that was shipped to Velletto in Utica, Velletto deposited or caused others to deposit money into various bank accounts, some held in the names of third-party nominees, in and around Utica. The cash was then withdrawn immediately in Las Vegas by Wills, or by others at his direction, and the money was used in part to purchase more marijuana from sources of supply in Northern California to be shipped back to Utica for or on behalf of Velletto.
Velletto also mailed, or caused others to mail on his behalf, cash or blank money orders to Las Vegas as payment for the marijuana, which cash and blank money orders were deposited by Wills or by others at Wills’s direction into bank accounts, often held by third-party nominees, and which money was used to purchase more marijuana.
Velletto admitted that as a result of his participation in the money laundering conspiracy, he was responsible for $1,274,310.00, in that he laundered this amount or the laundering of this amount by others was reasonably foreseeable to him.
Velletto, who has been incarcerated since his arrest in January 2016, entered his guilty pleas on September 13, 2016. After he finishes his term of imprisonment, Velletto will be placed on supervised release for 5 years. Chief United States District Judge Glenn T. Suddaby also ordered that Velletto pay a $1,274,310 money judgment.
This case was investigated by the FBI, the Oneida County District Attorney’s Office, the New York State Police, the Internal Revenue Service (IRS), the Bureau of Alcohol, Tobacco, and Firearms & Explosives (ATF), and was prosecuted by Assistant U.S. Attorney Carl Eurenius and Oneida County Assistant District Attorney Grant Garramone, who also serves as a Special Assistant U.S. Attorney.
Former Executive Director of Mississippi River Corridor-Tennessee Inc. Facing Federal Fraud ChargesRead the Press Release
NASHVILLE, Tenn. – February 20, 2019 – An indictment was unsealed today, charging Diana Threadgill, 66, of Memphis, Tennessee, with three counts of mail fraud, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. Threadgill was arrested by federal agents this morning and will appear before a U.S. Magistrate Judge in Memphis later today.
According to the indictment, Threadgill was the Executive Director of Mississippi River Corridor – Tennessee Inc. (MRCT), a Memphis-based non-profit organization whose mission was to “identify, conserve and enhance the region’s natural, cultural and recreational resources to improve the quality of life and prosperity in West Tennessee.”
The indictment alleges that beginning in October 2011 and continuing until March 29, 2017, Threadgill obtained grants on behalf of MRCT from federally funded government agencies, such as the Tennessee Department of Transportation (TDOT), the Tennessee Department of Environment & Conservation (TDEC), and the Tennessee Valley Authority (TVA). In 2013, Threadgill applied for and received one such grant from TDOT in the amount of $1,512,000 for the purpose of building an interpretive visitor center at Reelfoot Lake. The Tennessee State Building Commission (SBC) provided an additional matching grant in the amount of $372,000. Threadgill submitted reimbursement requests for expenses, which had previously been sought or reimbursed and obtained more than $133,000 in additional reimbursement, which she used for her own personal benefit.
The indictment further alleges that Threadgill submitted fraudulent checks to TDOT, seeking and receiving reimbursements by representing that the checks had been cashed by vendors when, in reality, they had never been provided to the vendors.
Finally, the indictment alleges that Threadgill sought funding from TVA in March 2017, knowing that the MRCT Board of Directors had previously voted to dissolve the organization. She obtained $41,749.94 in addition to the duplicated funds that she had previously received from the federally funded agencies. The total loss amount in federal funds was $174,921.84.
If convicted, Threadgill faces up to 20 years in prison and a $250,000 fine on each count.
This case was investigated by the U.S. Department of Transportation, Office of Inspector General; the TVA, Office of Inspector General; and the Tennessee Comptroller’s Office. Assistant U.S. Attorney Sara Beth Myers is prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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Former Bank Employee Pleads Guilty to EmbezzlementRead the Press Release
BOSTON – A former bank employee pleaded guilty today in federal court in Worcester in connection with embezzling money from client accounts held by the bank by which she was employed.
Jessica Vargas, 35, of Athol, pleaded guilty to one count of bank fraud and two counts of bank embezzlement. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for May 15, 2019. Vargas was charged by criminal complaint and arrested in March 2018.
Vargas was an employee of a federally-insured bank when she embezzled approximately $108,000 by making unauthorized cash withdrawals from customer accounts. Bank documentation showed that Vargas made unauthorized withdrawals from the accounts of various customers, including more than $53,000 from the account of an 84-year-old bank customer and almost $13,000 from the account of an 88-year-old customer.
For each count, Vargas faces a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of $1 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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorneys Bill Abely and Kristen Noto of Lelling’s Criminal Division are prosecuting the case.
Floridian Charged with Removing Mail from a U.S. Mail Authorized Depository in McMurray, PARead the Press Release
PITTSBURGH - A resident of Pembroke Pines, Florida, has been indicted by a federal grand jury in Pittsburgh on a charge of theft of mail, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on Feb. 19, named Cassio Orville Donald Slowden, 27, as the sole defendant.
According to the Indictment, on or about February 11, 2019, Slowden abstracted and removed mail from a United States mail authorized depository in McMurray, PA.
For Slowden’s offense, the law provides for a maximum total sentence of not more than five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney David Lew is prosecuting this case on behalf of the government.
The U.S. Postal Inspection Service and U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Florida Man Sentenced to One Year in Prison for Insider Trading Scheme Based on Confidential Information Misappropriated from an Investment BankRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced that ROBERTO RODRIGUEZ was sentenced today one year and one day in prison for his involvement in an insider trading scheme based on material, nonpublic information misappropriated from an investment bank by Daniel Rivas, a former employee at the bank. RODRIGUEZ pled guilty on September 7, 2018, to one count of conspiracy to commit securities fraud and fraud in connection with a tender offer before Magistrate Judge Henry B. Pitman. His plea was thereafter accepted by U.S. District Judge Alison J. Nathan, who also imposed today’s sentence.
U.S. Attorney Geoffrey Berman said: “Roberto Rodriguez reaped millions of dollars trading on confidential corporate information stolen by a longtime friend at an investment bank. Our Office is committed to identifying and prosecuting insider trading networks that undermine our nation’s securities markets.”
According to the Indictment, other filings in Manhattan federal court, and statements made in court filings and proceedings:
In August 2017, RODRIGUEZ, Michael Siva, Rodolfo Sablon, Jhonatan Zoquier, and Jeffrey Rogiers were arrested and charged in a 54-count Indictment for their involvement in three overlapping insider trading schemes, generating more than $5 million in illicit profits, all stemming from information misappropriated by Rivas. Prior to the unsealing of the Indictment last year, Rivas and an additional participant, James Moodhe, pled guilty and both have been cooperating with the Government in this investigation. Since the unsealing of the Indictment, all of the charged defendants have pled guilty.
The Investment Bank and Rivas
From August 2013 through May 2017, Rivas was employed as a technology consultant in the Research and Capital Markets Technology Group of an investment bank (the “Investment Bank”). In this role, Rivas had access to an internal, proprietary system maintained by the Investment Bank (the “Deal Tracking System”) containing material, nonpublic information (“Inside Information”) about potential and unannounced merger and acquisition transactions, including tender offers, involving the Investment Bank. The Investment Bank’s written policies prohibited the unauthorized disclosure of confidential information, which included Inside Information. Rivas had a duty, among other obligations, to maintain the confidentiality of all of the Investment Bank’s confidential information, including the Inside Information.
Overview of Insider Trading Schemes
From August 2014 through April 2017, Rivas violated the duties of confidentiality he owed to the Investment Bank by serially misappropriating material, nonpublic information from the Investment Bank’s Deal Tracking System and passing that information along to friends so that they could utilize it to make profitable trades. On more than 50 occasions between August 2014 and April 2017, Rivas provided Inside Information about contemplated but unannounced merger and acquisition transactions and tender offer transactions involving clients and prospective clients of the Investment Bank to friends who used that information to purchase and sell securities. In total, the insider trading based on Inside Information misappropriated by Rivas resulted in illicit profits of more than $5 million through trading in more than two dozen securities. The Inside Information was passed through three tipping chains.
The Rodriguez Tipping Chain
RODRIGUEZ was a member of the second of three tipping chains outlined in the Indictment. In this tipping chain, Rivas passed inside information to RODRIGUEZ, a childhood friend of Rivas with whom Rodriguez had maintained a close relationship as adults, and Sablon.
Since 2014, RODRIGUEZ lived and worked in Miami, Florida, with Sablon, with whom he was also friends. In 2015, RODRIGUEZ introduced Rivas to Sablon. Rivas and Sablon then communicated with each other directly and developed an independent relationship.
In the fall of 2015, Rivas disclosed to RODRIGUEZ that Rivas had access to Inside Information by virtue of his position as a corporate insider at the Investment Bank. At RODRIGUEZ’s request, Rivas also agreed to share Inside Information with Sablon. While Rivas had originally agreed to divulge Inside Information to RODRIGUEZ because of their history of friendship, Rivas also learned that RODRIGUEZ and Sablon intended to start an investment fund with the proceeds of the insider trading scheme. Rivas understood that in exchange for the Inside Information Rivas was providing to RODRIGUEZ and Sablon, Rivas would be invited to join the investment fund as a partner once it was successfully launched.
At first, Rivas communicated with RODRIGUEZ and Sablon primarily via phone and text message. As the scheme progressed, however, RODRIGUEZ and Sablon increased their efforts to hide their illegal activity. On several occasions, Rivas met personally with RODRIGUEZ and/or Sablon in Miami in order to provide them with Inside Information. Rivas also provided RODRIGUEZ and Sablon with Inside Information using an encrypted mobile messaging application, which allows users to set a timer to messages to irretrievably “self-destruct.”
In order to maximize the illicit profits that could be earned using Rivas’s Inside Information, RODRIGUEZ and Sablon, in consultation with Rivas, initiated an aggressive strategy of purchasing short-term, out-of-the money call options. In total, from 2015 through April 2017, RODRIGUEZ and Sablon earned more than $2 million in illicit profits through insider trading in more than two dozen securities based on Inside Information divulged by Rivas.
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In addition to the prison term, RODRIGUEZ, 34, of Miami, Florida, was sentenced to two years of supervised release.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for their assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Andrea M. Griswold and Samson Enzer are in charge of the prosecution.
Florida Man Charged with Money Laundering in $8.5 Million Account Takeover SchemeRead the Press Release
NEWARK, N.J. – A Florida man was arrested today on charges that he laundered funds related to an $8.5 million business account takeover scheme with ties to Eastern Europe, U.S. Attorney Craig Carpenito announced.
Igor Buzyukov, 51, is charged by criminal complaint with one count of money laundering. He is scheduled to appear tomorrow in Miami federal court.
According to the complaint:
Between February 2018 and July 2018, Buzyukov and others were allegedly part of an account takeover scheme aimed at several clients of Company-1, a financial technology company headquartered in San Jose, California. The scheme resulted in total losses exceeding $8.5 million.
The scheme generally involved an unidentified individual or individuals calling Company-1 and impersonating a representative of one of the victim companies. The individual would then request that an unauthorized bank account be added to the victims’ Company-1 accounts and be designated to receive payments from e-commerce customers.
The unauthorized bank accounts added to the victims’ Company-1 accounts were each controlled by Buzyukov under the name of a corporation registered to him in Florida. After monies were deposited to the unauthorized accounts, Buzyukov would transfer the funds to other accounts controlled by him. Buzyukov then wired the majority of the funds to several bank accounts held by various individuals in Russia, Turkey and Ukraine.
The money laundering charge carries a maximum penalty of 20 years in prison and a fine of $500,000, or twice the value of the property involved, whichever is greater.
U.S. Attorney Carpenito credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Anthony Torntore of the U.S. Attorney’s Cybercrimes Unit in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Felon from Mexico living in Benton pleads guilty to illegally re-entering U.S., possessing firearmRead the Press Release
SHREVEPORT, La. – Illegal alien and felon Shandy Salgado-Almendaris, 39, of Mexico, pleaded guilty today before Chief Judge S. Maurice Hicks Jr. to one count of re-entry of a removed alien and one count of felon in possession of a firearm, U.S. Attorney David C. Joseph announced.
According to the guilty plea, Bossier Parish Narcotics Task Force agents encountered Salgado-Almendaris on August 9, 2018 at his Benton, Louisiana, residence. Agents discovered a Rohm GmbH (RG Industries), Model: RG-14, .22-caliber revolver in the master bedroom area. Agents seized the firearm and arrested Salgado-Almendaris. He was later found to be an illegal alien who had been previously removed from the United States three times - September 30, 2010, November 10, 2010, and September 12, 2013 in Texas and Louisiana. The defendant is also a felon who was convicted of possession of cocaine in 2003.
Salgado-Almendaris faces 10 years in prison, three years of supervised release and a $250,000 fine for each count. Hicks set the sentencing date for May 30, 2019.
United States Immigrations and Customs Enforcement, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Bossier Parish Narcotics Task Force investigated the case. Assistant U.S. Attorney Brian C. Flanagan is prosecuting the case.
Federal Jury Convicts Twin Falls Man, Who Shot at Police Officer in Shoshone, on Gun and Drug ChargesRead the Press Release
BOISE – U.S. Attorney Bart M. Davis announced today that a federal jury convicted Jesus Javier Malagon, 31, of Twin Falls, of unlawfully possessing firearms as a felon, possessing marijuana with the intent to distribute, and using and discharging a firearm during and in relation to the drug trafficking crime. Malagon was indicted by a federal grand jury on February 14, 2018. The trial began on Monday, February 11, 2019, and concluded on Friday evening when the jury returned their verdicts.
Malagon’s case stemmed from a traffic stop on January 30, 2018, in Shoshone, Idaho. Malagon fled from the traffic stop and a high-speed pursuit with police ensued. Malagon eventually crashed his vehicle. When a police officer approached Malagon after the crash, Malagon shot a 9 millimeter handgun at the police officer. The officer immediately returned fire, striking Malagon multiple times. Malagon suffered non-life threatening injuries from the shooting. A subsequent search of Malagon’s vehicle yielded the 9 millimeter handgun, an additional .38 caliber revolver, multiple pounds of marijuana, and other items showing that Malagon was distributing marijuana. Malagon was a felon and therefore prohibited from possessing firearms. His prior felony conviction was for manufacturing marijuana.
Sentencing is scheduled for May 9, 2019, before U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise. The crime of unlawful possession of firearms by a felon is punishable by up to ten years in prison and three years of supervised release. The crime of possession of marijuana with intent to distribute, as enhanced by Malagon’s prior marijuana manufacturing conviction, is punishable by up to ten years in prison and at least four years of supervised release. The crime of using and discharging a firearm during and in relation to the drug trafficking crime is punishable by a mandatory minimum of ten years, and up to life in prison, which must be served consecutively to all other sentences, and up to five years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Shoshone City Police Department, Gooding County Sheriff’s Office, and the Critical Incident Task Force, which included Idaho State Police, Twin Falls Sheriff’s Office, and the Twin Falls Police Department.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. 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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Federal Judge Sentences Former Berkeley County School District Chief Financial Officer to More Than Five Years for Embezzlement, Money Laundering, and Public CorruptionRead the Press Release
CHARLESTON, S.C. – Today, U.S. District Judge David C. Norton sentenced the former Chief Financial Officer (CFO) of the Berkeley County School District, Brantley Denmark Thomas, III, to 63 months in prison on charges of embezzlement, money laundering, and public corruption, announced the U.S. Attorney’s Office for the Western District of North Carolina. Judge Norton also ordered Thomas, 61, of Charleston, South Carolina, to serve three years under court supervision after he is released from prison, and to pay a total of $1,232,106.08 as restitution to Berkeley County School District (BCSD).
According to filed court documents and today’s sentencing hearing, from at least 2010 to December 2016, Thomas served as CFO of BCSD. As the School District’s CFO, Thomas was responsible for, among other things, reviewing invoices and authorizing payments to BCSD vendors. Court records show that, during the relevant time period, Thomas executed an embezzlement scheme by which he, among other things, intentionally overpaid certain BCSD vendors. When those vendors issued refund checks resulting from the overpayments, Thomas converted the checks issued to School District for his own use. Court records also show that, at times, Thomas deposited the refund checks directly into a personal bank account. At other times, Thomas converted the refund checks into cashier’s checks, which he then deposited into a personal bank account. Over the course of at least sixteen years, Thomas also used other methods to embezzle from BCSD, and stole at least $1.2 million of School District funds. Thomas used the stolen money on personal expenditures, including to pay for personal travel, jewelry and private club memberships.
According to court records and plea related documents, Thomas also admitted to taking at least $32,000 in bribes and kickbacks from an insurance broker in exchange for Thomas’ help in securing millions of dollars in BCSD’s insurance business.
In imposing the sentence, Judge Norton highlighted the serious nature of Thomas’ crimes, and noted its negative impact on the students of BCSD, the need to protect the public from Thomas, and the need to deter Thomas and others from committing such crimes in the future. Judge Norton also commented upon Thomas’ apparent “OPM Addiction,” – referencing Thomas’ repeated thefts of “Other people’s money.”
In January 2018, Thomas pleaded guilty to a total of twenty federal charges involving embezzlement, money laundering and public corruption. Thomas is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons, upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was conducted by the FBI and the South Carolina Law Enforcement Division. In making today’s announcement, the U.S. Attorney’s Office thanked the South Carolina Attorney General’s Office for its assistance.
The prosecution was handled by Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office for the Western District of North Carolina in Charlotte upon recusal of the U.S. Attorney’s Office for the District of South Carolina.
Fayette County Woman Charged with Illegally Receiving Social Security BenefitsRead the Press Release
PITTSBURGH, PA – A Fayette County resident has been indicted by a federal grand jury in Pittsburgh on a charge of theft of government property, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on Feb. 19, named Mika Lint aka Mika Baluch, 40, of Perryopolis, Pennsylvania.
According to the Indictment, from September 24, 2014 through July 27, 2016, Lint received $40,517 in Old Age, Survivor’s Disability Insurance benefits from the United States Social Security Administration, to which she knew she was not entitled.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Social Security Administration, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Euclid woman sentenced to nine years in prison for a scheme in which she fraudulently enrolled students in community colleges to defraud the Department of Education out of $1.8 millionRead the Press Release
A Euclid woman was sentenced to more than nine years in prison for a scheme in which she fraudulently enrolled students into Ohio community colleges to defraud the U.S. Department of Education out of $1.8 million.
Basheera Perry, 45, was sentenced to 114 months in prison and ordered to pay nearly $1.9 million in restitution. She previously pleaded guilty to numerous charges, including conspiracy, wire and mail fraud and aggravated identity theft.
"These programs were designed to help make college more affordable to people who want an education, but this defendant used them to enrich herself," U.S. Attorney Justin Herdman said. "She was a one-stop shop for fraud."
According to court documents:
Perry conspired with others between 2009 and 2017 to defraud the U.S. Department of Education. Perry would use the fraudulent students’ name, date of birth and social security to enroll them in community colleges, including Lakeland Community College, Lorain County Community College, Owens Community College and others.
She then applied for financial aid on behalf of the students, which came in the form of loans, Pell and other grants. Many of the “students” participated in the scheme for money and did not have any intention of going to school or using the financial aid for school-related purposes. Also, many did not have a high school diploma or GED, making them ineligible to receive the financial aid.
Perry, her recruiters and the fraudulent students split the proceeds of the financial aid. The Department of Education sent the money to the colleges, which in turn would send the excess financial aid to the “students” via check or debit cards to addresses controlled by Perry.
Perry charged the students fees to complete their academic coursework -- $1,000 for two courses, $1,500 for three courses and $2,000 for four courses. She also charged $500 to make counterfeit GED certificates or high school diploma transcripts. She also created other false documents, such as death certificates, medical records and police reports, for use in academic appeals if the “students” received notification of lack of satisfactory academic progress needed to receive financial aid.
She also participated Section 8 housing fraud between 2012 and 2017.
This case was investigated by the Social Security Administration -- Office of Inspector General, U.S. Department of Education -- Office of Inspector General, Postal Inspection Service and Department of Housing and Urban Development – Office of Inspector General. It was prosecuted by Assistant U.S. Attorneys Robert Kern and Danielle Angeli.
Essex County, New Jersey Woman Sentenced to Two Years in Prison for Illegal Food Stamps SchemeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, woman was sentenced today to 24 months in prison for her role in a food stamps fraud scheme, U.S. Attorney Craig Carpenito announced.
Maria Teresa Venegas of Newark previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging her with one count of Supplemental Nutrition Assistance Program (SNAP) benefit fraud. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Venegas was the listed owner of Jenny’s Deli, a small grocery store in Newark. From March 2015 to March 2018, her father, Manuel Venegas, was an employee of Jenny’s Deli.
Jenny’s Deli was authorized to accept benefits provided by SNAP, formerly known as the Food Stamp Program. The program is administered by the U.S. Department of Agriculture. Retail food stores approved for participation in SNAP may sell food in exchange for SNAP benefits but may not exchange SNAP benefits for cash. According to the charges against them, Maria Teresa Venegas and Manuel Venegas exchanged more than $885,000 in SNAP benefits for cash between 2011 and 2018.
Every SNAP recipient receives an Electronic Benefit Transfer (EBT) card, similar to a debit card, to use to make purchases. Every retailer authorized to accept SNAP benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction, and informs the retailer whether the transaction should be authorized or denied. The amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the purchase amount is credited to the retailer’s designated bank account.
In addition to the high volume of SNAP benefits redemptions for Jenny’s Deli, indicating fraud, law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of an undercover law enforcement agent who engaged in approximately 20 “purchases” at Jenny’s Deli where Manuel Venegas, Maria Teresa Venegas, or another Jenny’s Deli employee acting at their direction exchanged money for SNAP benefits.
In addition to the prison term, Judge Vazquez sentenced Maria Teresa Venegas to two years of supervised release and ordered restitution of $888,487.
Manuel Venegas pleaded guilty on Oct. 30, 2018, to the same charge and is scheduled to be sentenced March 6, 2019.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture – Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
El Reno Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Homer Lee Basquez, age 38, of El Reno, Oklahoma, entered a guilty plea to Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that in or about November, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate and foreign commerce.
The charges arose from an investigation by the Okmulgee County Sheriff’s Office and the Federal Bureau of Investigation.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
East Dorset Man Charged with Second Federal Child Pornography CrimeRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Walter Read, 76, of East Dorset, Vermont, was indicted on February 14, 2019 by a Burlington grand jury with one count of possession of child pornography and one count of access with intent to view child pornography. On February 19, 2019, Read was arrested and arraigned in U.S. District Court in Burlington before The Honorable John M. Conroy. At arraignment, Read pleaded not guilty to both charges. Read is next scheduled to appear in federal court on February 22 for a hearing on the government’s motion for his pretrial detention.
According to Court records, Read sustained a previous conviction in federal court for possession of child pornography. For that conviction, The Honorable William K. Sessions III sentenced him in 2012 to 37 months in prison to be followed by five years of supervised release. Read is accused of committing the instant child pornography offense – involving alleged downloading of images of child exploitation – while serving his term of federal supervised release.
U.S. Attorney Christina E. Nolan is handling the prosecution of Read. The lead federal investigator is a Homeland Security Investigations Special Agent. Assistant Federal Public Defender Steven Barth represents Read.
U.S. Attorney Nolan emphasized that the defendant is presumed innocent until and unless proven guilty. If convicted, Read faces a ten-year mandatory minimum sentence for each count. The advisory United States Sentencing Guidelines will also inform the Court at sentencing.
U.S. Attorney Nolan commended the efforts of the Vermont Internet Crimes Against Children Task Force, Homeland Security Investigations, and the Manchester, Vermont Police Department.
U.S. Attorney Nolan noted that this prosecution is part of the U.S. Department of Justice=s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney=s Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Dupree Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Dupree, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on February 20, 2019, by U.S. District Court Judge Roberto A. Lange.
David Little Wounded, age 36, was sentenced to 40 months in federal prison, followed by 4 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Little Wounded was indicted by a federal grand jury on August 14, 2018. He pled guilty on November 27, 2018.
The conviction stemmed from Little Wounded personally distributing between 200 and 350 grams of methamphetamine in South Dakota, beginning in April of 2016 and continuing through January of 2018.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Little Wounded was immediately turned over to the custody of the U.S. Marshals Service.
Corpus Christi, Texas Man Pleads Guilty to Conspiracy to Commit Wire FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JESSE MARCUS ESTES, age 44, pleaded guilty today to one count of conspiracy to commit wire fraud before U.S. District Judge Lance M. Africk.
ESTES faces a term of imprisonment of up to twenty (20) years imprisonment, a maximum $250,000.00 fine, and up to three (3) years of supervised release. Judge Africk scheduled sentencing for May 22, 2019.
According to court documents, ESTES conspired to commit wire fraud while employed by Texas Steam & Instrumentation Company (Texas Steam), a corporation related to Louisiana Steam Equipment Company, a Louisiana company located in New Orleans. As Executive Vice President, ESTES conspired with two Texas companies to defraud Texas Steam through a scheme to have Texas Steam or Louisiana Steam pay false invoices generated by the two Texas companies. The Texas companies then kicked back funds to ESTES by paying for fraudulent invoices from Industrial Sales, a company operated by ESTES. ESTES also used another company he owned and operated, Tru-Line Builders, to pass fraudulent invoices through Texas Steam. The scheme spanned from 2007 until 2014 and the defendant stole approximately $374,626 from Louisiana Steam and related subsidiary companies through a fraudulent “pay to play” scheme.
U.S. Attorney Strasser thanked the Federal Bureau of Investigation for its investigation in this matter. Assistant United States Attorneys Patrice Harris Sullivan and Duane A. Evans are in charge of the prosecution.
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Cleveland man sentenced for drug distributionRead the Press Release
WHEELING, WEST VIRGINIA – Dorion D. McMullen, of Cleveland, Ohio, was sentenced today to 30 months incarceration for a drug distribution charge, United States Attorney Bill Powell announced.
McMullen, also known as “Caesar,” age 28, pled guilty to one count of “Distribution of Cocaine Base” in October 2018. McMullen admitted to selling cocaine in Ohio County in December 2017.
Assistant U.S. Attorney Steven L. Vogrin prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Calumet City Man Pleads Guilty to Firearms ChargesRead the Press Release
ROCKFORD — A Calumet City man pleaded guilty to firearms charges today before U.S. District Judge Frederick J. Kapala in Rockford.
BRUCE WALKER, 24, pleaded guilty to one count of conspiracy to commit an offense against the United States by stealing a firearm from a licensed firearms dealer, and one count of possessing a stolen firearm.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. The Manteno, Tinley Park, Chicago, and Loves Park Police Departments assisted in the investigation. The government is represented by Assistant U.S. Attorney Talia Bucci.
According to the written plea agreement, in the early hours of April 18, 2017, Walker and two other individuals obtained a stolen vehicle from Cook County and drove it to a federally-licensed firearms dealer in Manteno. The three individuals then used a hammer to shatter one of the dealer's glass exterior doors and entered the premises. After entering, they attempted to break into a firearms safe inside the office, but were not successful. On the way out, one of the individuals stole a rifle and a 30-round magazine hidden inside an office. Walker and the other two individuals also stole boxes of firearm ammunition before fleeing the premises, and returned to Cook County with the rifle, 30-round magazine, and ammunition. About three hours later, the three individuals used the same stolen vehicle to drive to a federally-licensed firearms dealer in Tinley Park, where Walker and another individual attempted to shatter the front glass door and a front window. When they were unable to gain entry to the business, they fled to the stolen vehicle where their getaway driver was waiting.
Walker faces a maximum sentence of five years’ imprisonment on the conspiracy charge, and a maximum of ten years’ imprisonment for possessing a stolen firearm. In addition, Walker faces a period of supervised release of up to three years following imprisonment, and a fine of up to $250,000 on each charge. The sentence will be determined by the United States District Court, guided by the Sentencing Guidelines. Sentencing is set for May 30, 2019, at 10:00 a.m.
KELVIN CULPS, also known as “Forty,” 22, of Dolton, was also indicted in the case and charged with conspiracy to commit an offense against the United States by stealing a firearm from a licensed firearms dealer, possessing a stolen firearm, and illegally possessing a firearm as a convicted felon. Culps is currently in custody pending trial. The public is reminded that an indictment contains only charges and is not evidence of guilt. Culps is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Buffalo Man Indicted in Connection with Violent Home Invasion of an Elderly Tonawanda CoupleRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Todd Laraba, 41, of Buffalo, NY, with Hobbs Act robbery and conspiracy, and marijuana conspiracy. The charges carry a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that according to the indictment and a previously filed complaint, on September 28, 2017, shortly before 9:00 p.m., two men entered the residence at 540 Harrison Avenue in Buffalo, NY, and went to the family room where an elderly couple (victims) was watching television. The complaint states that the men were wearing black hooded sweat shirts, black pants, black gloves and skeleton masks, and one of the men had a husky or larger build. One of the men stated to the victims, "This isn't going to hurt, or take long. You won't get hurt, just relax." The men zip tied the victims’ hands and ankles with black zip ties and placed duct tape across the victims’ mouth and eyes. One of the men stayed with the victims while the other went to the attic of the residence. After approximately ten minutes the victims heard the rear door close. At this time they removed the duct tape from their eyes and mouth. One of the victims observed one of the men fleeing while carrying what appeared to be a lockbox.
The Town of Tonawanda Police Department responded and while processing the scene, officers recovered four black zip ties, four pieces of glossy duct tape, and other items.
Subsequent DNA testing determined that the major DNA profile obtained from the zip ties obtained from the ankles and wrists of one of the victims matched the DNA of Laraba.
In addition, between April and November 2017, the defendant conspired with others to possess and distribute marijuana.“I applaud the dogged efforts of investigators from the Tonawanda Police and the Erie County Sheriff’s Departments, who, along with the federal partners at HSI and the FBI, never gave up on identifying and tracking down the person responsible for terrorizing these elderly victims in the serenity of their own home,” stated U.S. Attorney Kennedy. “The arrest of this defendant should send a strong message to anyone thinking about preying on those most vulnerable—you will be discovered; you will be apprehended; and you will be brought to justice.”
The indictment is the result of an investigation by the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the Town of Tonawanda Police Department, under the direction of Jerome C. Uschold, III; U.S. Department of Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Benton man pleads guilty to methamphetamine, firearms chargesRead the Press Release
SHREVEPORT, La. – Eric Charles Means, 33, of Benton, Louisiana, pleaded guilty yesterday before U.S. District Chief Judge S. Maurice Hicks Jr. to possession with intent to distribute methamphetamine and possession of firearms in furtherance of a drug trafficking crime, U.S. Attorney David C. Joseph announced.
According to the guilty plea, law enforcement officers with the DEA encountered Means on January 24, 2018 in a vehicle in the parking lot of a hotel on Industrial Drive in Bossier City, Louisiana. Inside the vehicle were plastic baggies containing 12.6 grams of methamphetamine and two firearms in a duffel bag on the front passenger seat. Means admitted to distributing methamphetamine and that he possessed the firearms for his protection while distributing the drugs. The two firearms confiscated from the duffel bag were a Smith & Wesson .357-caliber pistol and a Glock .45-caliber pistol, along with ammunition.
Means faces up to 40 years in prison for methamphetamine distribution and at least five years in prison for firearms possession. He also faces five years of supervised release and a $5 million fine. The court set the sentencing date for May 23, 2019.
The DEA and ATF conducted the investigation. Assistant U.S. Attorney Brian C. Flanagan is prosecuting the case.
Bay Area Contractors Convicted in Scheme to Rig Bids for Department of Energy Building ContractRead the Press Release
SAN FRANCISCO - Clifton Burch and Peter McKean were convicted by a federal jury today of conspiring to defraud the United States in connection and conspiracy to commit mail and wire fraud all in connection with a federal construction contract, announced United States Attorney David L. Anderson, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Department of Energy Inspector General Teri L. Donaldson. The guilty verdicts follow a two-week trial before the Honorable Charles R. Breyer, U.S. District Judge.
The jury found that Burch, 50, of San Lorenzo, and McKean, 50, of San Mateo, conspired with Derf Butler to submit fraudulent bids to construct a building at Lawrence Berkeley National Laboratory (LBNL).
The investigation arose out of the investigation of Senator Leland Yee, Raymond “Shrimp Boy” Chow, and others. In the course of that investigation, Derf Butler was overheard discussing a bid-rigging opportunity. Butler stated that he had contractors who would “play ball” and help with a scheme to commit bid-rigging. Butler’s comments led to an undercover investigation of bid-rigging in the Bay Area. Building contracts at LBNL are paid for and overseen by the U.S. Department Energy (DOE). Contractors seeking construction work with LBNL and the DOE are legally required to obtain work through a competitive bidding process. In this case, Burch and McKean agreed with Butler to submit, or participate in the submission of, fraudulent and non-competitive bids to perform the renovation of LBNL Building 84. Specifically, Butler agreed to take steps to ensure that a particular “developer” – in reality, an undercover agent – won the contract by ensuring the lowest bid on the renovation project was provided by the developer. Butler helped to orchestrate the submission of bids by Burch and McKean in amounts dictated by Butler and the developer. The evidence at trial showed that Burch and McKean understood the bids were not genuine bids and were intended to be higher than the bid submitted to the DOE by the developer. Burch and McKean expected to get payment and work after the developer secured the contract.
Butler met with the developer in July of 2013, at which time Butler agreed to locate contractors to submit bids for the DOE contract in amounts higher than the contractor’s bid. On July 30, 2013, Butler met with Burch and McKean, each of whom agreed to submit a separate bid that would be higher than $5.7 million, the amount of the bid that would be submitted by the developer.
Butler also was given additional payments after Burch and McKean submitted the fraudulent bids. Specifically, on August 26, 2013, Burch mailed a bid for the contract to the LBNL in the amount of $7,125,000 and on October 3, 2013, McKean emailed a bid in the amount of $6,300,000. Burch and McKean both were told they would be given work as a sub-contractor and the construction manager on the project after the developer was awarded the bid.
A federal grand jury handed down a superseding indictment on November 8, 2018. Burch and McKean both were charged with one count of conspiracy to defraud the Unite States, in violation of 18 U.S.C. § 371, and one count of conspiracy to commit mail and wire fraud, in violation of 18 U.S. C. § 1349. Pursuant to today’s verdict, the defendants were convicted on all counts.
Butler pleaded guilty to his role in the scheme on October 17, 2018. Judge Breyer scheduled Butler’s sentencing hearing for March 27, 2019.
Judge Breyer scheduled the defendants’ sentencing hearing for June 19, 2019. The maximum statutory penalty for conspiring to defraud the United States is five years in prison and a $250,000 fine. The maximum statutory penalty for the conspiracy to commit mail and wire fraud count is 20 years in prison and a $250,000 fine. Further, additional periods of supervised release, fines, and restitution also may be imposed, however, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Cynthia Frey and William Frentzen are prosecuting the case with the assistance of Helen Yee, Rosario Calderon, Bridget Kilkenny, and Danielle Allison. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the DOE Office of the Inspector General.
Another Pittsburgh Man Pleads Guilty to Drug Charge in Operation Gang Green Investigation Led by FBI and DEARead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, pleaded guilty in federal court to a charge of conspiracy to distribute a quantity of cocaine, United States Attorney Scott W. Brady announced today.
Lawrence Morrison, 36, pleaded guilty to one count before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation, dubbed Operation Gang Green, revealed that from in and around November 2017 through in and around June 2018, Lawrence Morrison and his co-conspirators possessed with intent to distribute and distributed quantities of cocaine.
Judge Schwab scheduled sentencing for June 19, 2019, at 9 a.m. The law provides for a total sentence of 30 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorneys Tonya Sulia Goodman and Rachael Dizard are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Drug Enforcement Administration jointly led the multi-agency investigation, which also included the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, that led to the prosecution of Morrison.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Tuesday 19 February 2019
Warner Woman Pleads Guilty to Union TheftRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Christy Little Coppin, age 41, of Warner, Oklahoma, entered a guilty plea to Theft Within Special Maritime And Territorial, in violation of Title 18, United States Code, Section 661, punishable by not more than 5 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that from in or about May 2015 to in or about July 2017, in the Eastern District of Oklahoma, and within the special maritime and territorial jurisdiction of the United States, that is the Office of the American Federation of Government Employees Local 2250 in the Veterans Administration Hospital, the defendant did take and carry away, with intent to steal and purloin, personal property of the Office of the American Federation of Government Employees Local 2250, with a value exceeding $1,000.00.
The charges arose from an investigation by the United States Department of Labor.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Sarah McAmis represented the United States.